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Tuesday 18 November 2014
KC Man Sentenced for Stealing $330,000 from ATMsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for stealing more than $330,000 from automated teller machines (ATMs) that he was hired to maintain.
Anthony T. Civella, Jr., 47, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to two years in federal prison without parole. The court also ordered Civella to pay $70,000 in restitution, in addition to the restitution that has already been paid.
On Feb. 27, 2014, Civella pleaded guilty to bank larceny and money laundering.
From 2011 through 2013, Civella owned and operated a company called C Management Group, LLC, which serviced 35 ATMs in the Kansas City, Mo., metropolitan area. The money in the ATMs belonged to U.S. Bank. Civella stole $330,040 from the ATMs by obtaining a maintenance code to access the machines. Civella moved money between the ATM machines in order to conceal the theft.
Civella comingled the stolen money from the ATMs by depositing most of the cash into his personal checking account at the Holy Rosary Credit Union. Civella admitted that he deposited money from the bank larceny scheme into his personal checking account in order to conceal or disguise the location and source of the proceeds of the bank larceny.
This case was prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI, IRS-Criminal Investigation and the Kansas City, Mo., Police Department.Jury Convicts 64-Year-Old Las Vegas Man of Interstate Transportation of A Minor for Unlawful Sexual ActivityRead the Press Release
SACRAMENTO, Calif. — A federal jury returned a guilty verdict today, finding Donald J. Peel, 64, of Las Vegas, Nevada, guilty of transportation of a minor with the intent to engage in unlawful sexual activity, United States Attorney Benjamin B. Wagner announced.
According to court documents and evidence presented during the five-day trial, Peel initiated a sexual relationship with a 16-year-old girl in Las Vegas in late 2013. In February 2014, he took her on a trip lasting almost a month, through five states, including Nevada, Arizona, California, Oregon, and Washington. Peel had sex with the minor in each of the five states. The trip ended with Peel’s arrest in Weed, California on March 19, 2014. The minor was still accompanying him.
Evidence at trial showed that Peel targeted the teenager, who had a developmental disability and a drug problem. During the five-state trip he provided her with drugs, including heroin, methamphetamine (which he administered intravenously), and marijuana. He engaged in sexual activity with the teenager nearly every day of the trip. Also presented during the trial was evidence that Peel attempted to keep his girlfriend in Las Vegas from testifying at trial, though she ultimately testified.
This case is the product of an investigation by the Federal Bureau of Investigation, the California Highway Patrol, the Weed Police Department, Siskiyou Juvenile Probation Department, and the Franklin County Sheriff’s Office in Washington. Assistant United States Attorneys Michael M. Beckwith, Sherry D. Haus, and Matthew D. Morris are prosecuting the case.
Peel is scheduled to be sentenced by United States District Judge Garland E. Burrell Jr. on February 6, 2015. Peel faces a sentence of at least 10 years, and up to life in prison, and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
- Importing Methamphetamine on Independence Day Leads to 10 Years in Federal Prison
Hubbard, Iowa, Woman Sent to Prison for Bank FraudRead the Press Release
A woman who forged a court order in support of her request for a bank loan and a separate letter purporting to be from a United States Department of Justice official was sentenced on November17, 2014, to nearly four years in federal prison.
Stephanie Drake (formerly known as Stephanie Drake-Zierke), age 51, from Hubbard, Iowa, received the prison term after a July 23, 2014 guilty plea to one count of bank fraud and one count of unlawful manufacture and possession of a United States Department of Justice seal.
In a plea agreement, Drake admitted that, between about March 2009 and September 2012, she fraudulently induced a bank to loan her money by falsely claiming that her husband had been awarded a legal settlement in the amount of $2,200,000. Drake also admitted presenting a fabricated document to the bank purporting to be a court order for the legal settlement. Drake also admitted defrauding the same bank by presenting falsified loan paperwork indicating her husband’s parents had agreed to guarantee a loan of up to $162,600. Drake admitted that, between May 2008 and September 2012, the bank loaned her a total of at least $483,513.51. Drake admitted her conduct resulted in a loss to the bank of more than $400,000.
Drake was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Drake was sentenced to 41 months’ imprisonment on the bank fraud count and an additional, consecutive term of six months imprisonment on the count of unlawful manufacture and possession of a United States Department of Justice seal. The total term of imprisonment imposed was 47 months. A special assessment of $110 was imposed, and she was ordered to make $708,217.95 in restitution to the defrauded bank and other victims. Drake must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Drake was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Peter Deegan and was investigated by the Federal Bureau of Investigation and the Hardin County, Iowa, Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-2032.
- Houston Woman Heads to Prison for Threatening President Obama
Honduran Citizen Apprehended in York County Charged with Improper EntryRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations (ERO) announced today that a 28-year-old native and citizen of Honduras has been charged with improper entry into the United States.
According to United States Attorney Peter Smith, Orbin Izaguirre-Galvez, age 28, was charged in a one-count information filed with the Court in Harrisburg today.
The information alleges that Izaguirre-Galvez, an illegal alien, did enter the United States at any time or place other than as designated by immigration officers and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.
If convicted, Izaguirre-Galvez faces a maximum sentence of up to 6 months’ imprisonment and a $5,000 fine.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations (ERO). It is being prosecuted by Special Assistant United States Attorney Alice Song Hartye.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Guilty Plea in Immigration and Tax Fraud SchemeRead the Press Release
PHILADELPHIA - Kim Meas, 60, a native of Cambodia, pleaded guilty to charges stemming from schemes to defraud the United States. Meas was the managing director of LS Services Corporation (“LS”), an employee leasing company in South Philadelphia. He pleaded guilty to two counts of conspiracy to commit an offense against the United States, two counts of transporting illegal aliens and two counts of failure to collect and pay federal income and employment taxes. United States District Court Judge Jan E. Dubois scheduled a sentencing hearing for February 18, 2015. Meas faces a maximum possible statutory sentence of 30 years in prison, a fine of up to $1.5 million, a $600 special assessment, and three years of supervised release.
As the principal corporate officer at LS, Meas negotiated labor leasing contracts with various companies throughout the greater Delaware Valley that leased temporary workers from LS. Meas also established approximately 14 shell companies to create the illusion that the workers that LS leased to other companies were employees of the shell corporations. As such, the shell corporations, and not LS, would be responsible for collecting and paying employment and income taxes for the employees. Meas attempted make it impossible for the IRS to determine the identity of the employer of the illegal aliens, as well as the amount of employment and income taxes that the employer of the illegal aliens was required to pay to the federal treasury. LS also transported the illegal aliens, free of charge, to various work locations in company vehicles. The companies, that leased employees from LS, did not withhold federal income taxes on the wages paid to the employees, nor did these companies collect and pay to the Internal Revenue Service, employment taxes on the income earned by the workers. Meas had two co-conspirators, Ken Sem
and Vivi Fnu, who previously pleaded guilty.This case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations and Internal Revenue Service Criminal Investigations. It is being prosecuted by Assistant United States Attorney Floyd J. Miller.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Greenville Man Sentenced for Selling Crack and HeroinRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Terrence W. Boyle sentenced GREGORY STARKIE, 34,of Greenville, North Carolina, to 96 months in prison and 3 years of supervised released for distribution of crack cocaine and aiding and abetting the distribution of heroin. STARKIE previously pled guilty to these charges on May 15, 2014.
Between July 26, 2012, and September 8, 2012, the Greenville Police Department used an informant to buy crack cocaine from STARKIE on four occasions. On May 8, 2013, another informant, working at the direction of the Greenville Police Department and the Burearu of Alcohol, Tobacco, Firearms and Explosives, met with STARKIE to purchase heroin. STARKIE introduced the informant to his uncle, James Edward Starkie (previously convicted), who sold heroin to the informant.
STARKIE received an enhanced punishment as a career offender based on his prior state convictions for common law robbery, assault with a deadly weapon inflicting serious injury, and selling cocaine.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greenville Police Department. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Gladstone Man Sentenced to 12 Years for Producing Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Gladstone, Mo., man was sentenced in federal court today for producing child pornography.
Barry Alan Darlington, 74, of Gladstone, was sentenced by U.S. District Judge Gary A. Fenner to 12 years in federal prison without parole.
On June 6, 2014, Darlington pleaded guilty to producing child pornography. Darlington also admitted that he engaged in a pattern of activity involving prohibited sexual conduct.
Based upon information received by the Western Missouri Cyber Crimes Task Force from two cybertips, law enforcement officers executed a search warrant at Darlington’s residence on July 18, 2013. They seized multiple electronic media, including a computer hard drive that contained multiple images of child pornography. The child victim portrayed in the images told investigators that Darlington took the sexually explicit photos of her when she visited his residence during the summer approximately 11 years earlier, when she was 10 years old.
According to court documents, Darlington actually exploited the child victim for a three-year period. Darlington knowingly distributed some of the images of his sexually explicit conduct with the child victim over the Internet.
Darlington had hundreds, if not thousands, of images and more than 100 videos of child pornography, according to court documents. The government believes that even these numbers understate Darlington’s true exploitation of children because Darlington willfully destroyed a hard drive between the time he was first approached by law enforcement in an initial child pornography investigation and the service of the search warrant at his residence.
Darlington’s Internet chat logs reveal his pedophilic tendencies and his thoughts of perpetrating against other children. In his chats, according to court documents, he says he’s been ogling a neighbor girl whom his victim had been playing with when she was in town. The girl was 13 years of age at the time of the chat. Darlington said he tried to see if the girl could spend the night at his house, but Darlington’s wife did not approve. In his chats, Darlington also says he trolls malls to look at teen girls and he ‘checks out the kids’ when he’s at the grocery store. Darlington also says in his chats that he is attracted to other children besides his victim, but didn’t abuse them because he feared they would disclose his molestation.
This case was prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the Gladstone, Mo., Police Department and the Western Missouri Cyber Crimes Task Force.
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."Fuquay-Varina Man Sentenced to 24 Months for Bankruptcy Fraud and Obstruction ChargeRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, Chief United States District Judge James C. Dever III sentenced DONALD Wayne MANGUM , 52, of Fuquay-Varina to 24 months imprisonment, followed by 3 years of supervised release, and ordered him to pay $101,675.00 in restitution.
MANGUM was named in an Indictment filed on October 24, 2013, charging him with Bankruptcy Fraud and Destruction, Alteration, and Falsification of Records. On December 16, 2013, MANGUM pled guilty to those charges.
According to the investigation, on February 28, 2011, MANGUM fraudulently filed a Chapter 13 bankruptcy petition in the Eastern District of North Carolina, in the name of someone else in an effort to prevent the mortgage holder from foreclosing on his home. MANGUM failed to file a schedule of assets and liabilities or statement of financial affairs. The debt counseling statements, which were fraudulently filed under the penalty of perjury by MANGUM, were signed in the name of another.
Further, on June 10, 2011, MANGUM fraudulently filed a pro se Chapter 13 bankruptcy petition in the Eastern District of North Carolina, in the name of another. The debt counseling statement was fraudulently filed under the penalty of perjury by MANGUM.
MANGUM appeared at a Rule 2004 Examination in February, 2012, during which time he admitted to the fraudulent filings, and admitted to making misleading statements.
On June 12, 2012, the Bankruptcy Court entered an order directing that the two fraudulently filed cases be dismissed ab initio and directed that the records be expunged other than as necessary for further investigation. MANGUM was barred from filing bankruptcy for ten years and was permanently enjoined from assisting another individual with bankruptcy filings. Lastly, as a sanction, MANGUM was ordered to pay $2,500 to the United States Bankruptcy Court within five months.
Investigation of this case was conducted by the Federal Bureau of Investigation. Assistant United States Attorney S. Katherine Burnette prosecuted the case for the government.
Frederick Financial Officer Convicted of Stealing over $1.2 Million from a ClientRead the Press Release
Greenbelt, Maryland –Travis Wetzel, age 35, of Frederick, Maryland pleaded guilty today to wire fraud and money laundering in connection with a fraudulent scheme to transfer $1,282,224 from an elderly client’s annuity account.The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
Wetzel processed financial distribution documents for an investment advisory firm located in Rockville, Maryland. In 2009, Wetzel was promoted to branch operations manager. According to his plea agreement, from July 2010 to September 2012, Wetzel took a total of approximately $1,282,224 from an annuity account of a client without the client’s knowledge, and used the money for his personal benefit. Wetzel knew that the client was elderly, whose age and physical condition would facilitate repeatedly taking money from the client’s account.
Wetzel also laundered some of the money he took by transferring the money to other bank accounts he controlled.
Wetzel has agreed to forfeit $1,282,224.
Wetzel faces a maximum sentence of 30 years in prison and a $250,000 fine for wire fraud; and 10 years in prison for money laundering. U.S. District Judge Deborah K. Chasanow scheduled sentencing for February 23, 2015, at 11:30 a.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. 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.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant United States Attorneys David Salem and Leah J. Bressack, who are prosecuting the case.
Four Individuals Charged with Conspiring to File False Claims for Tax RefundsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that charges have been filed against four central Pennsylvania residents in connection with fraudulent federal income tax refund claims.
According to United States Attorney Peter Smith, separate criminal Informations were filed today in U.S. District Court in Williamsport charging the following persons:
Fatima Brooks, age 51, Williamsport, charged with filing 20 fraudulent income tax returns seeking $113,000 in fraudulent refunds.
Felicia Burks, age 44, Lancaster, charged with filing 52 fraudulent income tax returns seeking $85,000 in fraudulent refunds.
Valerie Burton, age 53, Williamsport, charged with filing 58 fraudulent income tax returns seeking $274,000 in fraudulent refunds.
Dawn Smith, age 44, Williamsport, charged with filing 41 fraudulent income tax returns seeking $88,000 in fraudulent refunds. Smith was also charged with making false statements relating to the Medicare Attendant Care Program and receiving payments for health care services which she never provided.
The fraud in each case allegedly took place between January 2012 and May 2013.
With respect to the fraudulent income tax billing scheme, each individual is facing up to 10 years imprisonment and a fine of $250,000. Based on the false statements concerning the Medicare program, Smith is facing an additional 5 years imprisonment and a fine of $250,000.
The government also filed a plea agreement in each case which is subject to approval of the assigned judge.
The investigation was conducted by the Internal Revenue Service – Criminal Investigation Division, the Federal Bureau of Investigation, the United States Postal Inspection Service, and the U. S. Department of Health and Human Services – Office of Inspector General. Assistant United States Attorney Wayne P. Samuelson has been assigned to prosecute the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statues and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.Four Indicted in Conspiracy to Rob Three Cell Phone StoresRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted Justin Jose Snow, a/k/a “J.O.,” age 22; his brother, Johnny Devon Snow, age 20; their cousin Taylor Yvonne Snow, age 22; and Arkeene Antoyn Redditt-Abrams, a/k/a “Duke,” age 26, all of Baltimore, today in connection with the armed robberies of three cell phone stores.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Gary Gardner of the Howard County Police Department.
According to the six-count indictment, from May 1, 2014 through June 24, 2014, the defendants conspired to rob three cell phone stores. The indictment alleges that the defendants planned to steal cash, cell phones and other electronic communications devices, and tablet computers; and that they planned to sell the stolen merchandise. As part of the plan, the defendants determined which firearms were used in the commission of the robberies; conducted surveillance of the targeted stores; wore face masks, hooded jackets and gloves to conceal their identities; and used plastic trash bags to carry the stolen items from the stores.
Specifically, the indictment alleges that on June 17, 2014, the defendants used a car rented by Taylor Snow to travel to an AT&T store on Dual Highway in Hagerstown. Taylor Snow allegedly entered the store to “case” it before the robbery. A short time later Justin Snow, Taylor Snow and Johnny Snow entered the store, and brandished a firearm in an attempt to rob an employee of the store. According to the indictment, a few hours later the defendants drove the rented car to an AT&T store in Ellicott City, Maryland. Redditt-Abrams allegedly entered the store to “case” it, then the Snows entered the store, brandished a gun and stole cash, cell phones and tablet computers worth more than $18,000.
Further, the indictment alleges that on June 24, 2014, Justin and Taylor Snow traveled to Mechanicsburg, Pennsylvania, where they used a gun to rob a T-Mobile store of cash, cell phones and tablet computers.
The defendants face a maximum sentence of 20 years in prison for the conspiracy and for each of two counts of committing a commercial robbery; and a minimum of seven years and up to life in prison for each of three counts of brandishing a firearm in relation to a crime of violence, consecutive to any other sentence. No court appearance has been scheduled for the defendants who remain in custody on related state charges.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI, and Howard County Police Department, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney John F. Purcell, who is prosecuting the case.
Former Stock Broker Pleads Guilty in Manhattan Federal Court to Insider Trading ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that DARYL PAYTON, a former stock broker at a securities trading firm (“Securities Trading Firm-1”), pled guilty today in Manhattan federal court to charges arising from his involvement in an insider trading scheme. The alleged scheme involved the misappropriation of material, non-public information (“Inside Information”) concerning IBM’s acquisition of a software company, SPSS, Inc., in 2009. PAYTON was charged in June 2012, and pled guilty today before U.S. District Judge Andrew L. Carter, Jr.
Manhattan U.S. Attorney Preet Bharara said: “With his guilty plea today, Daryl Payton must answer for his role in a scheme to acquire inside information about a corporate acquisition, and profit illegally from it to the tune of a quarter of a million dollars.”
According to the Indictment to which PAYTON pled guilty, statements made during the plea proceeding, and other court documents:
The Inside Information concerning IBM’s acquisition of SPSS originated from a corporate lawyer who was part of the legal team that represented IBM in the transaction (“Attorney-1”) in 2009. On or about May 31, 2009, Attorney-1 shared Inside Information concerning the transaction, including the names of the parties and the fact that IBM was going to acquire SPSS for a significant premium over its market price, with his close friend, Trent Martin, a former research analyst at an international financial services firm. The information was shared in confidence and, based on their longstanding history of sharing confidences, Attorney-1 expected that Martin would not share the information or use it to trade.
However, in June and July 2009, Martin bought SPSS common stock and call option contracts based on the Inside Information he was given by Attorney-1 and, in turn, shared the tip with his roommate, Thomas Conradt, who worked as a stock broker at Securities Trading Firm-1. In July 2009, Conradt bought SPSS common stock and tipped PAYTON, his co-worker at Securities Trading Firm-1 who also bought SPSS call options, as well as other co-workers at the firm. When IBM announced its acquisition of SPSS on July 28, 2009, the share price of SPSS common stock rose by 41% in one day. Thereafter, PAYTON sold his SPSS positions, yielding total profits of at least $250,000.
PAYTON, 38, pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. He is scheduled to be sentenced by Judge Carter on March 5, 2015, at 2:00 p.m. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation. He also thanked the U.S. Securities and Exchange Commission.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jessica Masella, Andrew Bauer, and Damian Williams are in charge of the prosecution.
U.S. v. Benjamin Durant and Daryl Payton S3 Indictment
Former Naugatuck Resident Sentenced to 57 Months for Illegally Obtaining and Selling Prescription NarcoticsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JESSE KAPLAN, 31, formerly of Naugatuck, was sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven to 57 months of imprisonment, followed by three years of supervised release, for illegally obtaining and distributing prescription narcotics.
According to court documents and statements made in court, in May 2012, the Drug Enforcement Administration began an investigation into the filling of fraudulent prescriptions for oxycodone at pharmacies in Connecticut and New York through the use of fraudulent identifications. The investigation revealed that KAPLAN and a co-defendant traveled to pharmacies together and used multiple aliases to fraudulently fill prescriptions for oxycodone and hydromorphone. They then pooled, traded or shared their pills for further distribution.
On August 8, 2013, KAPLAN was arrested by Naugatuck Police as a result of his alleged participation in a home invasion in Torrington. The incident followed an attempted sale of 60 oxycodone 30mg pills in exchange for $1,000 at the residence. According to pharmaceutical records and video surveillance, just hours before this attempted drug transaction, KAPLAN filled a prescription at a pharmacy under the alias “Sean Mullin” for 60 oxycodone 30mg pills. When Naugatuck police officers arrested KAPLAN, they located seven New York State driver’s licenses, all depicting KAPLAN’s photo with different identifying information.
KAPLAN was arrested on federal charges on December 20, 2013. On August 12, 2014, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute oxycodone.
This matter is being investigated by the Drug Enforcement Administration’s Diversion Squad and the Greenwich and Naugatuck Police Departments. The case is being prosecuted by Assistant U.S. Attorney Vanessa Richards.
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[email protected]Former Mayor and President of the National Conference of Black Mayors Re-sentenced to 20 YearsRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that U.S. District Judge Maurice A. Hicks has re-sentenced GEORGE L. GRACE, SR., age 70, of St. Gabriel, Louisiana, to twenty (20) years imprisonment, a $50,000 fine, forfeiture of $22,000, and a year of supervised release following imprisonment.
Today’s sentencing is the result of a decision by the Fifth Circuit Court of Appeals which required the original 22 year prison sentence to be reconsidered. The sentence is based on GRACE’s corrupt activities while serving as the Mayor of St. Gabriel and the President of the National Conference of Black Mayors. It is believed to be the longest public corruption prison sentence in the history of Louisiana.
GRACE was convicted by a jury following a six week trial of violating the Racketeer Influenced and Corrupt Organizations Act (RICO), obstruction of justice, making false statements, mail fraud, wire fraud, bribery involving a federally-funded entity, and use of an interstate facility in aid of racketeering. At sentencing, the court determined that GRACE was responsible for over four different bribery schemes involving over nine (9) million dollars, including schemes to extort businessmen seeking to do business in the city and help victims of Hurricane Katrina.
U.S. Attorney Green stated: “This historic sentence should send a loud and clear message that those engaged in public corruption will face severe punishment, and hopefully, any public official who might consider such a path will take heed.”
Status of Other Operation Blighted Officials Defendants
Thomas A. Nelson, Jr.: The former Mayor of New Roads, Louisiana, was convicted by a federal jury following a two and a half week trial of violating RICO, engaging in honest services wire fraud, using an interstate facility in aid of racketeering, and making false statements to the FBI. Chief Judge Jackson sentenced Nelson to 11 years in prison. Following appeal, Nelson’s sentence was reduced to 10 years in prison.
Maurice Brown: The former Mayor of White Castle, Louisiana, was convicted by a federal jury following a two week trial of violating RICO, engaging in honest services wire and mail fraud, and use of an interstate facility in aid of racketeering. Chief Judge Jackson sentenced Brown to 10 years in prison.
Frederick W. Smith: The Chief of Police for Port Allen, Louisiana, was convicted by a federal jury following a two week trial of 11 counts of violating RICO, engaging in honest services wire and mail fraud, and using an interstate facility in aid of racketeering. Chief Judge Jackson sentenced Smith to 90 months in prison.
Derek Lewis: The former Mayor of Port Allen, Louisiana, pled guilty to violating RICO and agreed to cooperate with authorities. Chief Judge Jackson sentenced Lewis to 40 months imprisonment.
Johnny Johnson: The former member of the Port Allen City Council pled guilty to using an interstate facility in aid of racketeering and agreed to cooperate with authorities. Chief Judge Jackson sentenced Johnson to two years of probation, with a condition of having to spend 6 months in a half-way house.
Richard Chambers: The former deputy commissioner of the Louisiana Department of Insurance pled guilty to using an interstate facility in aid of racketeering and agreed to cooperate with authorities. Chief Judge Jackson sentenced Chambers to 30 months imprisonment.
This investigation was being conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office for the Middle District of Louisiana, with assistance from the U.S. Department of Housing and Urban Development, Office of Inspector General, and the U.S. Department of Homeland Security, Office of Inspector General.
Operation Blighted Officials was prosecuted by First Assistant United States Attorney Corey R. Amundson, who serves as Chief of the Criminal Division, Assistant United States Attorney M. Patricia Jones, who serves as Senior Litigation Counsel, and Assistant United States Attorney Michael J. Jefferson.
Former Lowell Resident Pleads Guilty to Illegal Firearm PossessionRead the Press Release
BOSTON – A former Lowell man and convicted felon pleaded guilty yesterday to illegally possessing multiple firearms, including a semi-automatic pistol.
Eric Texeira, 34, pleaded guilty yesterday to being a felon in possession of firearms and ammunition. U.S. District Judge Denise J. Casper scheduled sentencing for Feb. 10, 2015. On May 16, 2014, Texeira, a convicted felon, possessed a Glock semi-automatic pistol and sold multiple other firearms, including two revolvers and a rifle, to another individual for $1,300. Some of the firearms had obliterated serial numbers.
The maximum sentence under the statute is 10 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Lowell Police Superintendent William Taylor, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz's Major Crimes Unit.
Former Lake Charles Company Employee Sentenced for Conspiring to Steal $900,000 Worth of MerchandiseRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that a former purchasing agent for a Lake Charles aviation company was sentenced to 36 months in prison for his role in stealing more than $900,000 worth of aircraft parts in return for cash.
David Kuhl, 54, of Federal Way, Washington, was also ordered by U.S. District Judge Richard T. Haik, to pay restitution of $930,401 and serve three years of supervised release. Kuhl pleaded guilty on October 10, 2013, to one count of conspiracy to commit wire fraud. According to evidence presented at the guilty plea, Kuhl used his position as a purchasing agent for Aeroframe Services LLC in Lake Charles to steal merchandise and then sell that merchandise to other businesses in the aviation industry across the United States. After those aviation companies sold the parts, they would either wire money or send checks to Kuhl who would then pay his co-conspirator at Aeroframe. He was also paid in the form of airline tickets, and on one occasion, in the form of a family vacation. Kuhl took part in the conspiracy from February 26, 2007 to June 10, 2009. Aeroframe is a Federal Aviation Administration (FAA)/European Aviation Safety Agency (EASA) certified Part 145 repair station and maintenance repair operations business.
“This defendant abused his position to satisfy his greed,” Finley stated. “We will prosecute anyone who commits fraud against businesses in the Western District of Louisiana. Thank you to the prosecutors and law enforcement agencies who worked this case.”
The U.S. Secret Service and the Lake Charles Police Department conducted the investigation. Assistant U.S. Attorneys Richard A. Willis and Daniel J. McCoy prosecuted the case.Former Finance Manager Sentenced to 30 Months in Federal Prison for Identity TheftRead the Press Release
Memphis, TN – Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced today that Terjun Tremaine Parker, 37, of Little Rock, Arkansas, was sentenced on Friday, November 14, 2014 to serve 30 months in federal prison for his acts of identity theft, in violation of 18 U.S.C. § 1028.
According to the facts presented in the indictment and revealed during subsequent hearings, in March 2014 Parker was a finance manager at Collierville Chrysler Dodge Jeep Ram. While employed by the Collierville dealership, Parker supplied personal identifying information of dealership customers to an associate of his. Parker believed and intended that his associate would use the information to commit fraud, such as opening credit accounts in victims’ names. On several occasions, Parker met his associate and exchanged victims’ personal information for money. On one of these occasions, April 30, 2014, Parker met his associate at a gas station in Collierville and delivered 17 credit reports containing personal information of former customers.
In addition to the prison sentence, United States District Judge John T. Fowlkes, Jr. ordered Parker to serve two years of supervised release. There is no parole in the federal prison system.
This investigation was conducted by the United States Secret Service. Assistant U.S. Attorney Stephen Hall represented the government.
Former Farmington Private School Teacher Pleads Guilty to Federal Child Pornography OffenseRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOSEPH RAJKUMAR, 44, formerly of Farmington, pleaded guilty today in Hartford federal court to one count of attempted receipt of child pornography. The charge stems from RAJKUMAR’s sexual relationship with a student while he was a teacher at Miss Porter’s School in Farmington.
According to court documents and statements made in court, in approximately April 2011, RAJKUMAR, who was a science teacher and advisor to the Science Olympiad team at Miss Porter’s School, befriended a minor female victim who was a student at the school. Before the victim left the school for summer break in June 2011, RAJKUMAR pressured her to create an anonymous email account that did not contain her name, which she eventually did. RAJKUMAR had already created an anonymous email account for his own use, in violation of the school’s policy that teachers and students should communicate via email only through a school-sponsored website. Through the email accounts, RAJKUMAR and the victim frequently engaged in video chats and, during the chats, RAJKUMAR made multiple attempts to get the victim to remove her shirt. The victim initially resisted, but eventually succumbed to RAJKUMAR’s advances and exposed her chest to him through the video chat.
Beginning in approximately November 2011, RAJKUMAR and the victim engaged in a sexual relationship that lasted several months. The investigation revealed evidence of numerous video chats that took place through at least April 2012. In the chats, RAJKUMAR frequently made lascivious comments to the victim and pressured her to expose herself.
The investigation further revealed that RAJKUMAR had also begun to harass other young girls at the school in person and through text messages. He told one female student via text message that she looked “hot” in the pants she was wearing at a school event and told another that she should create an anonymous email account so that they could do “naughty things” that were “secret.” In total, RAJKUMAR corresponded with at least six victims, including the one victim with whom he eventually had sexual intercourse. RAJKUMAR asked at least one of the other victims to start a physical relationship with him.
RAJKUMAR is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on February 6, 2015, at which time he faces a minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.
RAJKUMAR previously pleaded guilty in state court to sexual assault in the second degree and, in January 2014, was sentenced to 10 years of incarceration, execution suspended after 18 months, and 10 years of probation. He currently is in state custody.
This matter is being investigated by Homeland Security Investigations with the assistance of the Farmington Police Department. The case is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala
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[email protected]Former Controller of Non-Profit Organization That Funds Medical Research Charged in Manhattan Federal Court with Embezzling over $1.8 Million and Evading TaxesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Philip R. Bartlett, Inspector in Charge, United States Postal Inspection Service (“USPIS”), and Shantelle P. Kitchen, Acting Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigations Division (“IRS-CI”), announced today the arrest of KAREN ALAMEDDINE, a/k/a “Karen Dean,” the former controller of a New York-based non-profit organization whose core mission is to cure genetic illnesses by supporting biomedical research (the “Non-Profit”), for allegedly embezzling more than $1.8 million from the Non-Profit. ALAMEDDINE also was charged with tax evasion for deliberately failing to report to the IRS as income the money she embezzled from the Non-Profit. ALAMEDDINE was arrested yesterday in Boston, Massachusetts, and was presented today before United States Magistrate Judge Judith Gail Dein in Boston federal court.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Karen Alameddine not only embezzled almost $2 million and evaded taxes, she did so by ripping off the non-profit organization she worked for – an organization dedicated to finding cures for serious diseases – and she did so when she was supposed to be responsible for its finances. I would like to thank our partners on this investigation, USPIS and IRS-CI, for their work.”
USPIS Inspector in Charge Philip R. Bartlett said: “While Ms. Alameddine allegedly went to great lengths to hide her theft from her employer and those hoping to find the cure for serious illnesses, she could not hide from the watchful eye of law enforcement who put an end to her illegal activities.”
IRS Acting Special Agent in Charge Shantelle P. Kitchen said: “It is clear how embezzlement can hurt a business’s owners or stockholders, but stealing from a non-profit organization deprives those who will benefit from the organization’s mission. As a financial investigative agency, IRS-CI is dedicated to working with federal prosecutors and our partner federal law enforcement agencies, like the U.S. Postal Inspection Service, to investigate those who take advantage of their positions for personal criminal gain, at the expense of others.”
According to the Complaint unsealed in Manhattan federal court:
From approximately late 2008 through early 2014, while working as the controller for the Non-Profit, ALAMEDDINE diverted over $1.8 million of the Non-Profit’s funds to her own bank accounts and for her own personal use. ALAMEDDINE executed the scheme principally by disguising QuickBooks entries to make transfers to her personal bank account appear as if they were transfers made to pay grant recipients of the Non-Profit. ALAMEDDINE further sought to disguise the fraud by inventing a fictitious accounting firm named “Davis & Greene,” purportedly based in Washington, D.C., which was, according to ALAMEDDINE, retained to prepare certain tax returns for the Non-Profit for the 2012 and 2013 tax years.
After ALAMEDDINE fraudulently transferred the funds from an account belonging to the Non-Profit to a personal bank account, she further transferred the funds to other accounts she controlled, and thereafter used those funds for various personal expenses, including to pay personal bills. Among the personal bills ALAMEDDINE paid with the fraudulently diverted funds were utility bills, car payments, and personal mortgages.
In addition, for each of the calendar years 2009 through 2013, ALAMEDDINE filed tax returns with the IRS in which she deliberately omitted the reporting of the income she received from the fraud. Those deliberate omissions resulted in ALAMEDDINE’s evasion of substantial amounts of income for each of the years between 2009 and 2013.
ALAMEDDINE, 57, of Perris, CA, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, and five counts of tax evasion, each of which carries a maximum sentence of 5 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the IRS and the USPIS.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Stanley J. Okula is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Former Branch Manager at BBVA Compass Bank in Big Spring, Texas, Is Sentenced to 41 Months in Federal Prison on Bank Fraud ConvictionRead the Press Release
LUBBOCK, Texas — A former Branch Manager at BBVA Compass Bank in Big Spring, Texas, (BBVA Big Spring) was sentenced on Friday by U.S. District Judge Sam R. Cummings on a bank fraud conviction, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Lisa Lynette Barber, 49, of Amarillo, Texas, was sentenced to 41 months in federal prison and ordered to pay $1,095,540 in restitution. Barber pleaded guilty in July 2014 to one count of bank fraud. Judge Cummings ordered that she surrender to the Bureau of Prisons on Decemer 19, 2014.
According to documents filed in the case, Barber was employed by BBVA Big Spring as Branch Manager from 2008 to 2012. BBVA Big Spring acquired State National Bank in 2008 where Barber had worked from 1997 to 2008. Because of her position with BBVA Big Spring, Barber had full access to customers’ bank accounts.
Barber made withdrawals from BBVA Big Spring customers’ accounts without their knowledge, authority and permission, causing an approximate $1.1 million loss to BBVA Big Spring.
Barber executed her scheme by several means. She fraudulently used customers’ names and bank account numbers to initiate debit entries and withdrawals, which acted as formal requests for cashier’s checks payable to another financial institution. Sometimes she forged BBVA Big Spring employee bank tellers’ signatures on the cashier’s checks, which were then deposited into her personal banking account held at the Big Spring Community Federal Credit Union (BSCFCU).
Acting in a supervisory capacity, Barber withdrew money from customers’ accounts through her employee tellers. She submitted fraudulent withdrawal slips to BBVA Big Spring tellers to cause them to give Barber large amounts of cashier’s checks not belonging to her. Barber informed the tellers that she was conducting business and making transfers for her customers, and the tellers did not questions the legitimacy of those transactions because they trusted Barber was conducting the transactions at the customer’s request.
Barber victimized customers with whom she had a long-standing relationship, or customers she suspected would not immediately notice the unauthorized transactions. If customers noticed an improper transaction, they reported it directly to Barber who would immediately refund their accounts with money stolen from other customers’ accounts. This response served to confirm victims’ trust in Barber.
The FBI investigated the case. Assistant U.S. Attorney Chris Wolf prosecuted.
Final Defendant in Baltimore Heroin Distribution Conspiracy Sentenced to Five Years in PrisonRead the Press Release
Thirteen Co-Defendants Previously Convicted and Sentenced
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Raymond Jefferson, age 44, of Baltimore, to five years in prison, followed by three years of supervised release, for conspiring to distribute and possession with intent to distribute heroin.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to his plea agreement, from January to July 23, 2013, Jefferson was part of a drug trafficking organization that distributed heroin from an open-air drug “shop” in the Poplar Grove neighborhood of Baltimore. On a daily basis during the conspiracy Jefferson’s co-conspirators purchased heroin from several sources of supply, stored narcotics at “stash houses” throughout Baltimore, and packaged narcotics for street-level distribution. Jefferson personally sold heroin to retail customers and, at times, supervised the activities of other street-level dealers.
During the conspiracy, Jefferson and others conspired to distribute and possess with the intent to distribute at least one kilogram of heroin.
Darryl Robinson, age 50, of Baltimore, the leader of the organization, pleaded guilty and was sentenced to 15 years in prison. The remaining co-defendants: Mario Williams, age 38, of Baltimore; Darrell Gilliam, age 44, of Towson, Maryland; Isiah Robinson, age 28, of Baltimore; Antonio Berry, age 43, of Baltimore; Joyce Dunn, age 52, of Baltimore; Tyree Howard, age 48, of Baltimore; Hilton Gibbs, age 43, of Baltimore; Douglas Duncan, age 48, of Baltimore; Darryl Debro, age 39, of Baltimore; Kevin Fisher, age 46, of Baltimore; Eric Johnson, age 43, of Baltimore; and Reginald Randolph, age 48, of Baltimore, also pleaded guilty and were sentenced for their roles in the conspiracy.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Clinton J. Fuchs and Scott Lemmon, who prosecuted the case.
- Final Defendant Convicted in Stolen Identity Refund Fraud Scheme
- Estranged Couple Gets Massive Sentences for Sexual Exploitation of A Child
Essex County, N.J., Contractor Sentenced to 14 Months in Prison for Defrauding Bronx Home OwnerRead the Press Release
TRENTON N.J. - An Essex County, N.J. contractor who was paid nearly $100,000 to renovate the home of a Bronx, N.Y., woman, was sentenced today to 14 months in prison for defrauding her of the money in connection with the remodeling project, U.S. Attorney Paul J. Fishman announced today.
Raymond Norville, 45, of Orange, N.J., owner of RRL Unique Homes Inc., a construction company, previously pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to a superseding information charging him with one count of conspiracy to commit wire fraud. Judge Pisano imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
In 2011, Norville was a contractor who owned RRL Unique Homes Inc. The victim wanted to renovate her newly purchased home in the Riverdale section of Bronx. Norville agreed to perform the renovations on the residence for $250,000. He submitted invoices to the victim, inducing her to pay him $98,600 in cash for the purchase of materials, supplies, architectural plans, rental equipment and permits needed for the project. Norville emailed pictures of materials that he intended to purchase. Norville neither delivered to the job site, nor provided proofs of purchase for the materials. By May 2011, work on the project had not started and the victim demanded either a refund or the materials and supplies Norville promised to buy. Norville attempted to repay a portion of the $98,600 by providing a check for $24,500, which was rejected for insufficient funds.
In addition to the prison term, Judge Pisano sentenced Norville to three years of supervised release and ordered him to pay restitution of $98,600.
U.S. Attorney Fishman credited special agents of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia for the New York Region; and detectives of the Waterfront Commission of New York Harbor, under the direction of Commissioner Michael Murphy, for the investigation leading to today’s guilty plea.The government is represented by Senior Litigation Counsel V. Grady O’Malley in Newark.
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Defense counsel: David P. Schroth Esq., TrentonElizabeth Ann Carrier Sentenced to Eight Months in Prison for Making False Reports of Tainted Consumer ProductsRead the Press Release
Johnson City Resident Falsely Reported Family Member Poisoned Juice Drinks
GREENEVILLE, Tenn. – On Nov. 17, 2014, Elizabeth Ann Carrier, 52, of Johnson City, Tenn., was sentenced to serve eight months in prison by the Honorable J. Ronnie Greer, U.S. District Judge. Upon her release from prison, Carrier will be supervised for three years by the U.S. Probation Office. She was also ordered to complete 150 hours of community service, and pay a $100 special assessment to the United States.
Carrier pleaded guilty in July 2014 to a federal indictment charging her with falsely communicating reports of consumer product tampering. According to public records, Carrier placed telephone calls to the Pepsico Products consumer hotline in June 2013 claiming that an individual related to her by marriage had inserted rat poison in bottled juice drinks manufactured and distributed by Tropicana and Quaker Foods.
U.S. Attorney William C. Killian noted that Carrier was prosecuted under a statute which Congress enacted after the tainted Tylenol poisoning deaths which occurred in Chicago during 1982. "Understandably, Congress became concerned about the intentional tainting of consumer products and false reports of consumer product tampering. Such actions significantly disrupt interstate commerce, threaten public health, undermine public confidence in the safety of our food and drug supplies, and waste private and public resources investigating false reports. Individuals who knowingly make false reports of consumer product tampering should be aware that they are subject to federal prosecution," said Killian.
The indictment and subsequent conviction of Carrier was the result of an investigation conducted by agents with the U.S. Food and Drug Administration, Office of Criminal Investigations, assisted by the Sullivan and Carter County Sheriff's offices and Tennessee State Board of Probation and Parole. Assistant U.S. Attorney Helen Smith represented the United States.
Dundalk Man Sentenced to 14 Years in Prison for Armed RobberyRead the Press Release
Used Handguns and Threatened to Kill Store Employees
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Richard Coleman, age 49, of Dundalk, Maryland, today to 14 years in prison, followed by three years of supervised release for conspiring to commit robbery.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to his plea agreement, on December 7, 2013, Coleman and Arnold Dorsey entered a rental business on Frederick Road in Baltimore City. They conversed about gifts with each other and store staff. They asked an employee about an iPad (tablet computer.)
The store clerk walked back to an office to retrieve a charger to demonstrate the tablet. Both Dorsey and Coleman followed the clerk to the office. Once there, Coleman pulled out a semiautomatic handgun and pointed it at the clerk. Dorsey went to the next office, pulled out a semiautomatic handgun and pointed it at another clerk. They forced the clerks to open the register and took $1,144. They then took $73 from one clerk and $85 from another clerk. At this point they had the clerks lie on the floor and threatened to kill them.
The Baltimore Police Department received a call for a hold up and two officers responded. The first officer on the scene saw both defendants behind the counter in front of the office area. A clerk signaled to the officer alerting the officer that the defendants were robbing the business. The officer entered and made contact with Dorsey as he attempted to leave the store. The officer saw Dorsey’s handgun and had to subdue Dorsey. A second officer arrived and took custody of Coleman who surrendered his handgun. The officers recovered $1,144 from Dorsey and $158 from Coleman.
Co-defendant Arnold Dorsey, age 52, of Baltimore, previously pleaded guilty to his participation in the robbery and is scheduled to be sentenced on November 25, 2014 at 11:00 a.m.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Brandis Marsh, a cross-designated Baltimore Assistant State’s Attorney assigned to Exile cases, who prosecuted the case.
Convicted Felon Sentenced for Unlawful Possession of FirearmRead the Press Release
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(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Convicted felon Marvin Junior Thompson, 59, of Burlington, West Virginia, was sentenced to 30 months in prison for unlawful possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced today.
Thompson was convicted in March 1990 of the felony offenses of “First Degree Murder” and “Burglary” in the Circuit Court of Hampshire County, West Virginia. As a result of this conviction, Thompson was prohibited from possessing a firearm. In May 2013, Thompson was discovered in possession of a .300 caliber rifle along with ten rounds of .300 caliber ammunition.
Thompson pled guilty in July 2014 to one count of “Felon in Possession of Firearm” after an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mineral County Sheriff’s Department, and the West Virginia State Police.
Assistant U.S. Attorney Paul Camilletti prosecuted the case on behalf of the government.
U.S. District Judge Gina M. Groh presided.
Committee Studying American Indian and Alaska Native Children Exposed to Violence Makes Recommendations to Justice DepartmentRead the Press Release
The Advisory Committee of the Attorney General’s Task Force on American Indian and Alaska Native Children Exposed to Violence released policy recommendations to the Justice Department today.
The report recommends a significant rebuilding of the current services provided to Indian Country, through increased partnering and coordination with tribes, and increased funding for programs to support American Indian and Alaska Native children. Each of the five chapters discusses the Advisory Committee’s findings and recommendations. The report provides the Advisory Committee’s vision for the development of effective, trauma informed, and culturally appropriate programs and services to protect American Indian and Alaska Native children exposed to violence.
“American Indian and Alaska Native children represent the future, and they face unprecedented challenges, including an unacceptable level of exposure to violence, which we know can have lasting and traumatic effects on body and mind,” said Attorney General Eric Holder. “We must understand these impacts well so we can pursue policies that bring meaningful change. That’s why I am deeply grateful for the work of this advisory committee and the continuing mission of this task force.”
Attorney General Eric Holder created the task force in 2013. It is composed of a federal working group that includes U.S. Attorneys and officials from the Interior and Justice Departments and a federal advisory committee of experts on American Indian studies, child health and trauma, victim services and child welfare. Former U.S. Sen. Byron Dorgan and Iroquois composer, singer and child advocate Joanne Shenandoah co-chaired the 13-member committee.
These recommendations are a culmination of the research and information gathered through four public hearings held between December 2013 and June 2014 in Bismarck, North Dakota; Scottsdale, Arizona; Fort Lauderdale, Florida; and Anchorage, Alaska, and five listening sessions in Arizona, Minneapolis and Alaska where over 600 people participated from over 62 Tribes and 15 States from across the nation. More than 70 experts and 60 community members testified at the hearings, addressing domestic and community violence in Indian Country; the pathway from victimization to the juvenile justice system; the roles of juvenile courts, detention facilities and the child welfare system; gang violence; and child sex trafficking.
The Task Force on American Indian and Alaska Native Children Exposed to Violence is part of the Attorney General’s Defending Childhood initiative. The task force is also a component of the Justice Department’s ongoing collaboration with leaders in American Indian and Alaska Native communities to improve public safety.
To read the entire report and for more information about the advisory committee and public hearings, please visit www.justice.gov/defendingchildhood.
Columbus Man Sentenced for Possession of Crack CocaineRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced that Derrick Dujuan Greathouse, 36, of Columbus, Ohio, was sentenced today in federal court in Charleston to 70 months imprisonment for possession of crack cocaine with intent to distribute. Greathouse entered a guilty plea in June of 2014, admitting that he possessed approximately more than 200 grams of cocaine base for distribution in Charleston. Officers found the cocaine base in a rental car Greathouse was driving. Officers also found nearly $15,000 in cash that Greathouse admitted was drug proceeds. At the time of his arrest, Greathouse was on parole for a second degree murder conviction out of Wood County.
This case was investigated by the Metropolitan Drug Enforcement Network Team and the South Charleston Police Department.
Chicago Man Charged with Additional Bank Robberies in Huntley and PeotoneRead the Press Release
ROCKFORD — A Chicago resident is now facing three federal bank robbery charges, federal officials announced today. ADAM A. SANBORN, 29, of Chicago and formerly of Milton, Florida, was originally arrested on Sept. 10, 2014, and charged with the Aug. 23, 2014, robbery of the Byron Bank in Davis Junction, Illinois. The federal grand jury in Rockford returned an indictment against Sanborn on Sept. 23, 2014, charging him with that robbery.
Today, Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation, announced that the federal grand jury in Rockford returned a superseding indictment charging Sanborn with the robbery of the Byron Bank as well as the robbery of the First Community Bank and Trust in Peotone, Illinois, on Feb. 24, 2014, and the robbery of the Heartland Bank in Huntley, Illinois, on April 25, 2014. Sanborn will appear before U.S. Magistrate Judge Iain D. Johnston on Nov. 20, 2014, at 11:00 a.m. and be arraigned on all three charges contained in the superseding indictment. Sanborn has remained in custody since his initial arrest on Sept. 10, 2014.
United States Attorney Fardon praised the teamwork of the FBI and the Ogle County Sheriff’s Office, Huntley Police Department, and the Peotone Police Department in conducting the investigation.
Each bank robbery charge carries a maximum sentence of 20 years in prison and a $250,000 fine. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorney John G. McKenzie.
The public is reminded that a superseding indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government will have the burden of proving guilt beyond a reasonable doubt.
Superseding Indicmemt
Chester County Woman Charged in Fraud Scheme Involving Her EmployerRead the Press Release
Tracey McShane, 40, of East Fallowfield, PA,was charged by indictment with two counts of wire fraud, in and six counts of filing false individual income tax returns, announced United States Attorney Zane David Memeger.
The indictment alleges that McShane, the former Director of Financial Operations for Paoli-based Pacer Financial, Inc., defrauded her employer in two separate wire fraud schemes. According to the indictment, defendant McShane stole approximately $650,194 from her employers’ personal bank account to pay her personal credit card bills between December 2007 and February 2014. McShane used the stolen money to cover charges to high-end clothing retailers, including Bergdorf Goodman, a vacation to Mexico, hotel stays at the Four Seasons in Philadelphia and the Waldorf Astoria in New York, and $40,000 in wedding expenses. McShane also is charged with filing false income tax returns for the years 2008 through 2013 based on her failure to report as income the money she stole from her employer to pay her personal credit card expenses, and $11,000 in bonuses.
In addition, McShane is charged with a fraud scheme involving payroll at Pacer. According to the indictment, McShane began to wrongfully increasing her gross pay in July 2010 in amounts ranging from $500 to approximately $6,450, during a given pay period. Between 2010 and February 2014, the indictment contends that McShane stole an additional $98,765 from Pacer through her payroll scheme.
If convicted the defendant faces the following maximum possible sentence: 58 years’ imprisonment, three years of supervised release, a $1.1 million fine, and an $800 special assessment.
The case was investigated by the FBI and the Internal Revenue Service Criminal Investigations. It is being prosecuted by Assistant United States Attorney Karen M. Klotz.An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Charged Today in Connection with Stolen Identity Tax Refund Fraud Scheme Involving Student Financial Services AccountsRead the Press Release
Seventeen individuals were arrested today, 14 of whom are or were students at Miami Dade College, for their involvement in a stolen identity tax refund fraud scheme that utilized students’ Higher One financial services accounts. A total of 21 individuals were charged, four individuals remain at large. The scheme announced today implicated 644 victims and resulted in an aggregate intended loss amount of $1.9 million. Today’s cases reaffirm the government’s commitment to crack-down on the perpetrators of stolen identity tax refund fraud (SIRF).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, Thomas J. Caul, Special Agent in Charge, Social Security Administration, Office of the Inspector General, made the announcement.
Background of Investigation
This investigation implicates a tax refund fraud scheme that utilized over 1,000 student accounts at Miami Dade College. As alleged in the indictments, the defendants, 18 of whom are or were students at Miami Dade College, were involved in a scheme to steal tax refunds issued by the United States Department of Treasury. Using stolen identities, the defendants or their co-conspirators submitted fraudulent tax returns to the Internal Revenue Service. These tax returns directed that the resulting refunds be deposited into various bank accounts controlled by the defendants.
Most of the bank accounts used to collect the stolen money were serviced by a company called Higher One, Inc. This company provided financial services to colleges and universities throughout the United States, including Miami Dade College in Florida.
In United States v. Sandy Jean-Louis, tax refunds issued to 37 different victim-taxpayers were deposited into a single defendant’s account with Higher One. In United States v. Erving Etienne, organizers of the scheme directed 92 tax refunds into a single Higher One account. Fortunately, the IRS rejected 90% of these returns based upon suspected fraud. Ultimately, as established by testimony at trial of United States v. Kevin Cimeus, 13-20706-CR-Zloch, over 1,000 Higher One accounts have been implicated by the investigation.
Organizers of this fraud also sought to use students’ Higher One accounts to commit other forms of federal benefit fraud including social security fraud. For instance, in United States v. Glasner Simplice, the defendant allowed his Higher One account to receive $53,272.00 in stolen tax refunds and his TD Bank account to receive stolen tax refunds and $19,099.10 in fraudulently obtained social security administration benefits.
United States Attorney Wifredo A. Ferrer stated, “Today’s takedown is further evidence of the insidious and widespread nature of stolen identity tax refund fraud. That this crime has infiltrated life at a college is alarming. As a community, we cannot permit this type of crime to negatively affect young people and their prospects while in college. In addition to prosecuting those who fraudulently use the identities of others for financial gain, we will be working closely with Miami Dade College – and any other educational institution – to help educate students that selling the use of their student bank accounts to facilitate fraud is criminal and carries serious consequences.”
“Students attend college to give themselves a better chance for a successful future. These students, however, are accused of federal crimes that could land them in prison and tarnish their records forever,” stated Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation. “As we approach the next tax filing season, let me warn others not to be enticed to participate in this type of criminal behavior to make a few dollars. People who steal identities to file false tax returns and receive fraudulent refunds will be subject to prosecution. IRS Criminal Investigation is committed to continuing our work with the U.S. Attorney’s Office and our law enforcement partners to bring the individuals who commit these crimes to justice.”
“Identity theft is a serious and growing crime that destroys the financial lives of thousands of South Floridians every year,” said George L. Piro, Special Agent in Charge of FBI Miami. “Those arrested today were part of a Miami-based group who systematically hacked into numerous businesses and government institutions. Once inside, they stole personally identifiable information from unsuspecting victims to unlawfully file tax returns and redirect Social Security payments. The fraudsters subsequently utilized over 1,000 college student loan accounts in order to deposit illicit funds and launder the ill gotten money. No more. The FBI and our law enforcement partners will investigate and criminally prosecute such fraud to the fullest extent of the law.”
Ronald Verrochio, Inspector in Charge for Postal Inspection Service, stated “We are committed to combating this type of ID theft which affects millions of Americans annually. We will continue to work with our law enforcement partners to investigate these cases and deliver justice to the victims.”
Thomas J. Caul, Special Agent in Charge, Social Security Administration, Office of the Inspector General said “The Office of the Inspector General, Social Security Administration, has no higher priority than the investigation and prosecution of those who prey on the public, denying the victims of the needed support provided by government programs. I’m grateful that the U.S. Attorney’s Office shares our determination to ensure the integrity of SSA’s programs.
Scope of SIRF Problem
According to the Federal Trade Commission, Florida had the highest rate of identity theft in the United States in 2013. While identity theft in Florida ranks highest in the United States, the identity theft rate in Miami has reached near epidemic proportions. Florida’s rate of 192.9 complaints per 100,000 residents – the highest in the United States – is dwarfed by the Miami rate of 340.4 complaints per 100,000 residents.
Moreover, a September 2012 report by the U.S. Treasury Inspector General for Tax Administration (TIGTA) determined that Florida has the highest rate of stolen identity tax refund fraud in the United States. The City of Miami’s per capita number of false returns based on identity theft was 46 times the national average, and its per capita SIRF value was more than 70 times the national average. Worse still, this problem is projected to grow: the TIGTA report estimates that the IRS could issue as much as $21 billion in fraudulent tax refunds over the next five years.
Cases Announced Today
The cases being announced today are:
- United States v. Gary Antoine, Case No. 14-20666-CR-Williams;
- United States v. Emmanuel Avrilien, Gerrey Cherrelus, Sandy Jean-Louis, Marie Joseph, Andy Lamour, & Tamica Smith, Case No. 14-20829-CR-Moore;
- United States v. Marvin Dubuisson, Case No. 14-20828-CR-Altonaga;
- United States v. Ronald Dumond & Bianca Noel, Case No. 14-20844-CR-Scola;
- United States v. Erving Jaques Etienne, Case No. 14-20826-CR-Cooke;
- United States v. Mitsie Faustin, Case No. 14-20747-CR-Middlebrooks;
- United States v. Caleb Fadet, Case No. 14-20665-CR-Gayles
- United States v. Laquisha Q. Johnson, Case No. 14-20837-CR-Martinez;
- United States v. Jonathan Joseph, Case No. 14-20831-CR-Scola;
- United States v. Beethoven Nelson, Case No. 14-20751-CR-Altonaga;
- United States v. Farah Norelus, Case No. 14-20753-CR-Ungaro;
- United States v. Smith Jean & Beatrice Simeon, Case No. 14-20830-CR-Ungaro;
- United States v. Glasner Simplice, Case No. 14-20689-CR-Williams; and
- United States v. Rutherford Willy, Case No. 14-20752-CR-King.
The following is a brief summary of a few of the matters:
1. United States v. Caleb Fadet, Case No. 14-20665-CR-Gayles
On September 16, 2014, Caleb Fadet, 27, of Miami Beach, was charged in a twelve-count indictment for receiving stolen tax refunds. Each count charged the defendant with theft of government property, in violation of Title 18, United States Code, Section 641
According to the indictment, Fadet, a student at Miami Dade College, opened a bank account serviced by Higher One, Inc. After opening this account, tax refunds issued to 12 different victim-taxpayers were direct deposited into Fadet’s account. These deposits included seven refunds that were deposited into Fadet’s account on a single day – November 15, 2012. Ultimately, $10,440.00-worth of refunds was deposited into the defendant’s account.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to IRS-CI and FBI. This case is being prosecuted by Assistant U.S. Attorney John R. Byrne.
2. United States v. Laquisha Q. Johnson, Case No. 14-20827-CR-Martinez
On November 13, 2014, Laquisha Q. Johnson, 24, of Opa Locka, was charged in a three-count indictment for receiving stolen tax refunds. Each count charged the defendant with theft of government property, in violation of Title 18, United States Code, Section 641.
According to the indictment, Johnson was a student at Miami Dade College. During her time as a student, Johnson opened a bank account serviced by Higher One, Inc. After opening this account, tax refunds issued to three different victim-taxpayers were direct deposited into Johnson’s account. This included a tax refund of $61,000.00 that had been issued to a victim-taxpayer with the initials E.R.L. Ultimately, $63,000.00-worth of refunds was deposited into the defendant’s account.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to IRS-CI and FBI. This case is being prosecuted by Assistant U.S. Attorney John R. Byrne.
3. United States v. Emmanuel Avrilien, Andy Lamour, Sandy Jean-Louis, Tamica Smith, Marie Joseph, and Gerrey Cherrelus, Case No. 14-20829-CR-Moore
On November 13, 2014, defendants Emmanuel Avrilien, 22, Andy Lamour, 22, Sandy Jean-Louis, 21, Tamica Smith, 26, Marie Joseph, 25, and Gerrey Cherrelus, 22, all of Miami, were charged in a forty-count indictment with conspiring to steal tax refunds and stealing tax refunds. The defendants allowed their bank accounts to receive stolen tax refunds in the total amount of $98,481.00, which they then used for their own benefit.
Defendants were charged with conspiracy to steal government property and theft of government property, in violation of Title 18, United States Code, Sections 371 and 641.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to IRS-CI, FBI, and USPIS. The case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
4. United States v. Ronald Dumond and Bianca Noel, Case No. 14-20844-CR-Scola
On November 13, 2014, defendants Ronald Dumond, 22, and Bianca Noel, 21, of Miami, were charged in an eighteen-count indictment with conspiring to steal tax refunds, receiving stolen tax refunds, and aggravated identity theft relating to stolen tax refunds. Defendants allowed their Higher One accounts to receive stolen tax refunds in the total amount of $29,751.00, which the defendants used for their own benefit.
Defendants were charged with conspiracy to steal government property and theft of government property, in violation of Title 18, United States Code, Sections 371 and 641, and defendant Dumond was charged with aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to IRS-CI and FBI. This case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
5. United States v. Glasner Simplice, Case No. 14-20689-CR-Williams
On September 23, 2014, defendant Glasner Simplice, 20, of Miami, was charged in twenty-count indictment with conspiring to steal tax refunds and social security administration benefits. Defendant allowed his account with Higher One to receive stolen tax refunds in the total amount of $53,272.00, and his personal TD Bank account to receive stolen social security administration benefits in the total amount of $19,099.10, all of which Simplice used for his own benefit.
Defendant was charged with conspiracy to steal government property and theft of government property, in violation of Title 18, United States Code, Sections 371 and 641.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to IRS-CI, FBI, and SSA. The case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
Other Law Enforcement Partners
Mr. Ferrer thanked the investigative efforts and assistance of U.S. Postal Service Office of Inspector General, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Department of Labor-OIG, Office of Labor Racketeering and Fraud, and U.S. Department of Education, each of whom assisted with the investigation.
Additionally, Aventura Police Department, North Miami Beach Police Department, Fort Lauderdale Police Department, and Miramar Police Department were instrumental in the arrests this morning.
Information on Deterring, Detecting, and Defending SIRF
We encourage anyone with information about the widespread abuse of Higher One accounts to contact the IRS at (305) 982-5151.
For information on how to help deter, detect, and defend against identity theft, please visit www.irs.gov (enter “identity theft” in search box), www.ftc.gov or www.ic3.gov or contact the IRS Identity Protection Specialized Unit at 1-800-908-4490.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Cambridge Man Pleads Guilty in 17th Century Diary TheftRead the Press Release
BOSTON – A Cambridge man pleaded guilty yesterday to identity fraud related to the theft and sale of a book stolen from Boston’s historic Old South Church.
Michael Ford, 66, pleaded guilty to using the identity of another man in August 2008 in connection with the sale of the diary. U.S. District Judge George A. O’Toole scheduled sentencing for Feb. 27, 2015.The diary, which was written by James Hull in the 1600s, had been stolen from a display case in the Old South Church in the summer of 2008. On Aug. 11, 2008, a man sold the diary to a bookstore near Harvard Square for $750, using the driver’s license of another man as identification. Within 40 minutes of this transaction, Ford had obtained the check and the driver’s license and, using the license as identification, cashed the check at a bank in Harvard Square. The bookstore thereafter realized the diary had substantial historic significance and sold it to a collector for $40,000. After the sale, upon learning that the diary had been stolen, the bookstore bought it back and restored it to the Church.
According to the plea agreement, Ford faces no greater than five years in prison and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Boston Police Commission William Evans; Harvard University Police Chief Francis D. Riley; and Boston University Police Chief Thomas G. Robbins made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Robert E. Richardson of Ortiz’s Major Crimes Unit.
Bristol Man Sentenced for Bath Salts ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On Nov. 18, 2014, Harry Joseph Cannon, 50, of Bristol, Tenn., was sentenced by the Honorable R. Leon Jordan, U.S. District Court Judge, to serve 48 months in federal prison. Cannon was previously convicted of conspiracy to distribute, and possess with the intent to distribute, assorted Schedule I controlled substances, and assorted Schedule I controlled substance analogues, commonly known as “bath salts” or “spice”.
From March 2011 to October 2013, Cannon conspired with various other persons to distribute, and possess with the intent to distribute “bath salts” and “spice”. Cannon sold these substances from his store, 420 Emporium, in Bristol, Tenn. During the investigation, law enforcement conducted a series of undercover drug purchases from Cannon and 420 Emporium. Those purchases led to federal search warrants being executed on two separate occasions, on Mar. 21, 2012, and on Oct. 17, 2012. In both instances, agents recovered extensive amounts of Schedule I controlled substances and Schedule I controlled substance analogues. Most of these drugs were already prepackaged for resale. Numerous firearms were also recovered.
This long term investigation was the product of a partnership between the Bristol, Tennessee Police Department, Second Judicial District Drug Task Force, Sullivan County Sherriff’s Office, and the Drug Enforcement Administration. Assistant U.S. Attorney Nick Regalia represented the United States.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Beckley Man Pleads Guilty to Distributing HeroinRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Ronald Greer, 59, of Beckley, West Virginia, pled guilty in federal court in Beckley to distributing heroin. Greer admitted that on August 29, 2014, he sold heroin to a person who was cooperating with law enforcement authorities. The drug deal took place on Adrian Court in Beckley, West Virginia.
Greer faces up to 20 years in prison and a $1,000,000 fine. United States District Judge Irene C. Berger scheduled the sentencing for March 4, 2015.
The Beckley/Raleigh County Drug and Violent Crime Unit conducted the investigation.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and opiates. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Armed Crack Cocaine Dealer Sentenced to More Than 9 Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Aaron Kwandranc, 29, of Woonsocket, was sentenced today to 110 months in federal prison for being a felon in possession of a firearm and for distribution of crack cocaine, announced United States Attorney Peter F. Neronha, East Providence Police Chief Christopher J. Parella, Woonsocket Police Chief Thomas S. Carey and Daniel J. Kumor, Special Agent in Charge of the Boston field divisionof the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Kwandranc to serve 3 years supervised release upon completion of his prison term. Kwandranc pleaded guilty on June 18, 2014, to one count each of being a felon in possession of a firearms and distribution of crack cocaine.
According to information presented to the court, in July 2011, an East Providence Police Department detective informed ATF that he had developed information that Kwandranc had offered to sell four firearms for $1,000 to an individual known to the detective. The detective had the individual arrange with Kwandranc to bring the firearms to the individual’s apartment and leave them there until he could obtain $1,000. East Providence Police watched as Kwandranc left the individual’s apartment, then went inside and retrieved from the basement a handgun and three shotguns.
According to information presented to the court, as the investigation progressed, the individual known to East Providence Police arranged to purchase 32 grams of crack cocaine from Kwandranc for $1,500. East Providence Police, Woonsocket Police and ATF established surveillance in the area of Kwandranc’s Woonsocket residence and then followed him and the individual assisting law enforcement to a second apartment in Woonsocket where law enforcement monitored conversations that indicated that inside the apartment Kwandranc was converting cocaine powder to crack cocaine. A short time later, the individual assisting law enforcement turned over to an ATF agent a packet containing more than 23 grams of crack cocaine he purchased from Kwandranc.
Kwandranc has been detained in federal custody since June 18, 2014.
The case was prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Arizona Man Sentenced After Arrest with Almost 100 Kilos of MarijuanaRead the Press Release
WICHITA, KAN. - A man from Arizona was sentenced Tuesday to 37 months in federal prison after being stopped with almost 100 kilograms of marijuana in his car, U.S. Attorney Barry Grissom said.
Pilar Angel Leon-Beltran, 35, Tucson, Ariz., pleaded guilty to one count of conspiracy to distribute marijuana. In his plea, he admitted that on Dec. 30, 2013, the Kansas Highway Patrol stopped a car in which he was a passenger in Ellis County, Kan. In the Chevrolet Impala, officers found 10 bales of marijuana with a gross weight of 101.76 kilograms, including packing. Leon-Beltran fled on foot when the car stopped. He was arrested about three hours later.
The parties agreed that the net weight of the marijuana without packing was less than 100 kilograms but more than 80 kilograms. The vehicle in which the defendant was riding had been rented the day before in Denver.
Co-defendant Crystal Amarillas-Norzagaray, 23, Tucson, Ariz., is set for sentencing Nov. 24.
Grissom commended the Kansas Highway Patrol and Special Assistant U.S. Attorney Michelle Jacobs for their work on the case.Ansonia Man Charged with Making False Report of Police Brutality to the FbiRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that EDWARD MINERLY, 52, of Ansonia, waived his right to indictment and pleaded guilty today in Hartford federal court to one count of making a false report of police brutality to the Federal Bureau of Investigation.
According to court documents and statements made in court, on May 18, 2013, officers with the Derby Police Department arrested MINERLY on an outstanding probation violation warrant. On May 31, 2013, MINERLY called the New Haven Federal Bureau of Investigation and spoke with an FBI special agent. In the call, MINERLY alleged that Derby Police officers had recently arrested him for a probation violation and, upon placing him in a holding cell, commenced taunting him, subjecting him to flashing lights and tipping him backwards out of his wheelchair. MINERLY also alleged that Derby Police officers kicked him in the head, arms and upper body.
On June 6, 2013, an FBI special agent interviewed MINERLY in person at a Bridgeport hospital where MINERLY had been admitted. MINERLY again made allegations similar to those made on May 31, 2013, namely, that Derby Police officers had arrested him and, after placing him in a holding cell, picked him out of his wheelchair, threw him into a wall, flashed the lights on and off, and kicked him in the head and beat him.
In pleading guilty today, MINERLY admitted that the statements he made to the FBI alleging physical abuse by members of the Derby Police Department after his probation violation arrest were false.
“The Department of Justice is committed to investigating and prosecuting civil rights abuses by members of law enforcement,” stated U.S. Attorney Daly. “We are equally committed to prosecuting false reports of police brutality as these reports not only waste valuable federal law enforcement resources, but they have the potential to indelibly stain the police department and its officers that are unfairly maligned.”MINERLY is scheduled to be sentenced by Senior U.S. District Judge Alfred V. Covello on February 10, 2015, at which time he faces a maximum term of imprisonment of five years and a fine of up to $250,000.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Henry K. Kopel and First Assistant U.S. Attorney Michael J. Gustafson.
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[email protected]18 Individuals Indicted for Drug Trafficking at El Trebol Public Housing ProjectRead the Press Release
SAN JUAN, Puerto Rico – On November 12, 2014, a federal grand jury in the District of Puerto Rico returned an indictment against 18 defendants charged with conspiracy to possess with intent to distribute controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration is in charge of the investigation, with the collaboration of the Puerto Rico Police Department.
The 18 defendants are: Henry Díaz-Texidor, aka “Canto”; Enrique Osorio-Giron, aka “Yun Yun”; Frederick Torres-Merced, aka “Sombel”; Miguel A. Pagàn-Càtala, aka “Guelo”; Luis Javier Ríos Càtala, aka “Javi”; Saul O. Rodríguez-Rodríguez; José Verdejo-Santiago, aka “Colo”; Edgariel Medina-Rolón, aka “Precio”; Tomàs Benítez-Gonzàlez, aka “Tommy”; Giovanni Burgos-Arroyo, aka “Gino”; Larry Liboy López-Cepero, aka “Gordo”; Josué Machado-De Jesús, aka “Indio”; Jesús M. Marquez-Rosario, aka “Pacquiao”; Alexander Rosado-Ruiz, aka “Cachito”; José Abel Rosado-Ruiz, aka “Puchito”; Joshua Rosario-Cruz; Danny Tejada-Rosado, aka “Pocheche”; and Roberto García-Sànchez, aka “Robert”.
The indictment alleges that beginning in 2005, the organization distributed cocaine, heroin, crack, marihuana and prescription drugs within 1,000 feet of a real property comprising housing facility owned by a public housing authority, all for financial gain and profit.The 18 co-conspirators had many roles in order to further the goals of the conspiracy. Some of the defendants would routinely possess, carry, brandish, and use firearms to protect themselves and the drug trafficking organization; and would use force, violence, threats and intimidation in order to discipline members of their own organization.
It was further a part of the manner and means of the conspiracy that locks would be placed by members of the organization on gates located in the common areas of El Trébol buildings in order to protect the sellers from law enforcement.
“I commend our state and federal law enforcement partners for their hard work and efforts in this investigation,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “We will pursue the prosecution of these defendants with equal vigor.”
“The Drug Enforcement Administration initiated Operation Lucky Charm in April 2013, in conjunction with the Puerto Rico Police Department. DEA will not allow these violent drug trafficking organizations to take control over the lives of innocent people who live in El Trébol Public Housing Project or any other communities in Puerto Rico,” said Vito Salvatore Guarino, Special Agent in Charge of the DEA Caribbean Division.
Assistant U.S. Attorney Teresa Zapata-Valladares is in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Monday 17 November 2014
Washington, D.C. Man Sentenced for Robbing the Navy Federal Credit Union of over $100,000Read the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Emanuel Honemond, age 24, of Washington, D.C. today to 18 months in prison followed by three years of supervised release for conspiring to rob a bank.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to his plea agreement, on September 20, 2011, Honemond and his co-conspirators entered the Navy Federal Credit Union in Clinton, Maryland clothed in masks and announced a robbery. They took $100,427 and fled in a stolen van. The stolen money contained a tracking device and was recovered shortly thereafter by law enforcement.Davon Stephon Williams, age 24, and Jeffrey Louis Adams, age 35, both of Washington, D.C. previously pleaded guilty to their participation in the robbery and were sentenced to 84 months and 112 months in prison, respectively.
United States Attorney Rod J. Rosenstein praised the FBI and Prince George’s County Police Department for their work in the investigation and thanked Assistant U.S. Attorneys Bryan Foreman and William Moomau, who prosecuted the case.Virginia Beach Man Sentenced to Life Imprisonment for Producing Child PornographyRead the Press Release
NORFOLK, Va. – Robert Harold Scott, Jr., 27, of Virginia Beach, Virginia, was sentenced today to life in prison, for enticing and conspiring with multiple women to produce child pornography, among other charges including obstruction of justice.
Dana J. Boente, United States Attorney for the Eastern District of Virginia and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C. made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar.
On July 14, 2014, Scott was convicted by a jury on multiple counts involving the production of child pornography and online enticement. According to court documents and evidence presented at trial, Scott used various personas on the Internet to meet women and try to convince them to work as prostitutes for parties at hotels. In reality, Scott would not pay them after the parties and sometimes would extort the women by threatening to publish sexually explicit videos. Scott was convicted in Virginia Beach Circuit Court for this scheme in May 2013. However, while the state charges were pending, Scott continued this behavior. Homeland Security Investigations found that, when discussing the sex parties, sometimes Scott would request these women to produce child pornography and was very specific as to the sex acts he wanted done on camera. Five different women complied and sent sexually explicit images of children in return for the promise of money. In two instances, Scott convinced the women to bring the children to the hotel parties. As a result of Scott’s actions, seven different children, ages 1 to 5 years old, were sexually abused. Four of these women already pleaded guilty in Federal court to production of child pornography, and one of these women pleaded guilty in Chesapeake Circuit Court.
This case was investigated by Homeland Security Investigations, with assistance provided by Chesapeake and Virginia Beach Police Departments. Assistant U.S. Attorneys Elizabeth M. Yusi and Jay V. Prabhu prosecuted the case on behalf of the United States.
This 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 United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to 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.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-164.Tweet
Virginia Beach Man Sentenced to Life Imprisonment for Producing Child PornographyRead the Press Release
NORFOLK, Va. – Robert Harold Scott, Jr., 27, of Virginia Beach, Virginia, was sentenced today to life in prison, for enticing and conspiring with multiple women to produce child pornography, among other charges including obstruction of justice.
Dana J. Boente, United States Attorney for the Eastern District of Virginia and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C. made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar.
On July 14, 2014, Scott was convicted by a jury on multiple counts involving the production of child pornography and online enticement. According to court documents and evidence presented at trial, Scott used various personas on the Internet to meet women and try to convince them to work as prostitutes for parties at hotels. In reality, Scott would not pay them after the parties and sometimes would extort the women by threatening to publish sexually explicit videos. Scott was convicted in Virginia Beach Circuit Court for this scheme in May 2013. However, while the state charges were pending, Scott continued this behavior. Homeland Security Investigations found that, when discussing the sex parties, sometimes Scott would request these women to produce child pornography and was very specific as to the sex acts he wanted done on camera. Five different women complied and sent sexually explicit images of children in return for the promise of money. In two instances, Scott convinced the women to bring the children to the hotel parties. As a result of Scott’s actions, seven different children, ages 1 to 5 years old, were sexually abused. Four of these women already pleaded guilty in Federal court to production of child pornography, and one of these women pleaded guilty in Chesapeake Circuit Court.
This case was investigated by Homeland Security Investigations, with assistance provided by Chesapeake and Virginia Beach Police Departments. Assistant U.S. Attorneys Elizabeth M. Yusi and Jay V. Prabhu prosecuted the case on behalf of the United States.
This 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 United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to 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.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-164.Tweet
Ville Platte Man Sentenced to 102 Months in Prison for Armed Robbery of St. Landry Parish Convenience StoreRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a Ville Platte man was sentenced Friday to 102 months in prison for the armed robbery of more than $11,000 from a truck stop and a casino in St. Landry Parish.
Ronald James Doomes, 26, of Ville Platte, La., was sentenced on Friday by U.S. District Judge Elizabeth E. Foote, to 18 months in prison for one count of interference with commerce by robbery and 84 months in prison for one count of use and carrying of a firearm during and in relation to a crime of violence. He was also sentenced to serve five years of supervised release and ordered to pay $2,100 in restitution. A jury convicted Doomes after a four-day trial that ended on July 31, 2014. According to evidence presented at the trial, Arinkskie Tryvon Orlandeze Jones and Dudley Nelson, also of Ville Platte, took part in the armed robbery on April 8, 2011, at the Tiger Trax Truckstop #7 and Video Joker II Casino located in St. Landry Parish. After robbing the truck stop and casino, the defendants left with $11,675 in a white sports utility vehicle. St. Landry Parish Sheriff’s deputies located the vehicle and attempted a traffic stop. A high-speed chase ensued, three individuals exited the vehicle in a residential area of Opelousas and fled on foot. Nelson was apprehended. Jones and Doomes turned themselves in to authorities six days later.
After a three-day trial that ended on August 27, 2014, a jury found Jones guilty of one count of interference with commerce by robbery. A sentencing date has not been set. Nelson was sentenced on September 22, 2014 to 105 months in prison for his role in the robbery.
“This robbery placed innocent employees’ and customers’ lives at risk,” Finley stated. “I hope this case serves to dispel the notion that robbery is a quick and easy way to make money. If you commit this type of crime, you will be punished to the fullest extent of the law.”
This case is part of Project Safe Neighborhoods. Project Safe Neighborhoods is a Department of Justice initiative designed to reduce firearm crimes by removing dangerous and persistent felons from the community and promote firearm safety. The PSN attorneys prosecute a variety of federal firearms violations listed in Titles 18 and 26 of the U.S. Code, including illegal possession of firearms and commission of crimes with firearms.
The FBI, ATF and the St. Landry Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel prosecuted the case.
U.S. Attorney, Consulate General of Mexico, and Colorado Attorney General Sign First of Its Kind Memorandum of UnderstandingRead the Press Release
Click here for MOU in English
Click here for MOU in Spanish
Click here for photograph of U.S. Attorney John Walsh, Mexican Counsul General Carlos J. Bello, and Colorado Attorney General John Suthers
DENVER – This morning United States Attorney John Walsh, Mexican Consul General Carlos J. Bello, and Colorado Attorney General John Suthers signed a trilateral memorandum of understanding (MOU) which formalized a cooperative relationship to protect and promote the lawful rights of Mexican nationals in Colorado who are victims of crime, and to promote trust between the Mexican community in Colorado and all levels of law enforcement in the state. The MOU, the first of its kind between a U.S. Attorney’s Office, state Attorney General’s Office and a Mexican Consulate, is the result of close cooperation between the three governments as they work with the Mexican community to address issues related to crime and the protection of crime victims. This important intergovernmental agreement does not change existing law – which already protects crime victims, regardless of national origin – but represents the formalization of an active partnership between the three governments to ensure that those rights are fully implemented and honored.
The Memorandum of Understanding culminates 18 months of close cooperation between the U.S. Attorney’s Office, the Colorado Attorney General’s Office and the Mexican Consulate General in Denver that included community meetings, workshops, and “mobile consulate” office meetings around Colorado to focus attention on labor rights, human trafficking, prevention of “notario” fraud and commercial scams, the problem of domestic violence and which even extended to emergency preparedness for the community in natural disasters.
“Today’s signing of this ground-breaking MOU reflects the dedication of the U.S. Attorney’s Office, the Colorado Attorney General’s Office, and the Mexican Consulate to cooperate, communicate and work together to ensure that legal protections for crime victims found in both federal and state law extend fully to the Mexican community here in Colorado,” said U.S. Attorney John Walsh. “Critically, our collective efforts to promote trust between the Mexican community here in Colorado and law enforcement at all levels will ensure not only the proper protection of all residents and visitors in our state regardless of national origin, but will help ensure criminals cannot evade prosecution by targeting immigrants. Crime victims must have confidence that they can safely report crimes and identify criminals, and today’s Memorandum of Understanding is a major step forward to build that trust.”
General Consul, Carlos J. Bello, said that: “This MOU institutionalizes the framework of cooperation through which we have worked together to promote a culture of prevention and reporting, fostering trust within the Mexican Community and a strategy of outreach that includes the active participation of the U.S. Attorney’s Office and the Colorado Attorney General’s Office.”
“Whenever we have an opportunity to unite - as we are here today - we can help reach our goal of protecting and promoting the lawful rights of Mexican nationals by advancing the trust between the Mexican community in Colorado and law enforcement,” said Colorado Attorney General John Suthers. “I am optimistic that by signing this Memorandum of Understanding we will move toward achieving that goal.”
Two Men, One Woman Sentenced for Operating Synthetic Drug Business from Las VegasRead the Press Release
LAS VEGAS, Nev. – U.S. District Judge Jennifer A. Dorsey sentenced three defendants this morning for their involvement in a conspiracy to distribute the synthetic drugs known as “spice” and “bath salts,” announced U.S. Attorney Daniel G. Bogden, for the District of Nevada.
Joshua Michael Riley, 32, of Henderson, Nev., was sentenced to 51 months in prison and three years of supervised release, Nicholas Collado, 32, of Houston, Texas, was sentenced to 37 months in prison and three years of supervised release, and Alexandra Haardt, 28, of Henderson, Nev., was sentenced to three years of probation with a condition of one year of home confinement. They pleaded guilty over the summer to one count of conspiracy to possess with intent to distribute and distribute a controlled substance and controlled substance analogue. Judge Dorsey also entered final orders of forfeiture against all of the defendants requiring them to turn over in large part to the government approximately $802,000 in bank accounts, $371,000 in gold and silver bars and coins, $32,000 in money orders and checks, $14,700 in jewelry, a Cadillac vehicle, a condominium in Henderson, Nev., and two handguns and ammunition.
Two other defendants were also charged in the conspiracy. Marco Alvarado pleaded guilty and was sentenced on Nov. 12 to 30 months in prison, and Jacob Fisher pleaded guilty and is scheduled for sentencing on Nov. 19.
“Spice” and “bath salts” are potent and dangerous substances that are being sold to an unwary public in convenience stores, head shops, gas stations and online,” said U.S. Attorney Bogden. “These synthetic drugs are powerful substances that when consumed have caused hallucinations and dangerous levels of overdose. We will continue working diligently with our local, state and federal law enforcement partners to prosecute persons who callously and recklessly distribute them.”
According to the court records, Riley owned and operated JMR Enterprises in Las Vegas. The defendants ordered chemicals from China, and manufactured controlled substance analogues, such as spice and bath salts, at Riley’s large residence in Las Vegas. The defendants sold the controlled substances online over the website, thesupplyboys.com, using the brand names “Mad Pineapple,” Tiger Blood,” “Mad Max,” and “New Ivory Wave,” and distributed the orders via overnight delivery service on a regular basis to buyers as far east as Philadelphia, Pa. In July 2012, agents executed a federal search warrant at Riley’s home and recovered approximately 26 pounds of synthetic cannabinoids, also known as “spice,” three pounds of synthetic cathinones also known as “bath salts,” packaging materials, baking pans containing substances that were drying outside, and two firearms. Law enforcement investigators also recovered approximately three additional pounds of bath salts, and 47 packages of “spice,” from the mails during the investigation.
“As these sentences make abundantly clear, the manufacture and sale of synthetic drugs is a serious crime,” said Michael Harris, Assistant Special Agent in Charge for Homeland Security Investigations Las Vegas. “These substances may have benign names like ‘spice’ and ‘bath salts,’ but they have been linked to serious health complications and even death. Even more troubling, is the fact that the distributors of these dangerous synthetic drugs are packaging and marketing them to appeal to young people.”
According to the Office of National Drug Control Policy, synthetic drugs are a rapidly emerging threat and there is an increasingly expanding array of synthetic drugs available. Use of synthetic drugs is alarmingly high, especially among young people. The contents and effects of synthetic drugs are unpredictable due to a constantly changing variety of chemicals used in manufacturing processes devoid of quality controls and government regulatory oversight. Health warnings have been issued by numerous public health authorities and poison control centers describing the adverse health effects associated with the use of synthetic drugs. The Administration has been working with federal, congressional, state, local, and non-governmental partners to put policies and legislation in place to combat this threat, and to educate people about the tremendous health risk posed by these substances. For more information on the risks and dangers of synthetic drugs, go to http://www.whitehouse.gov/ondcp/ondcp-fact-sheets/synthetic-drugs-k2-spice-bath-salts.The case was prosecuted by Assistant U.S. Attorney James E. Keller and investigated by ICE HSI and the U.S. Postal Inspection Service, with the assistance of the DEA.
Two Inland Empire Men Plead Guilty in String of ATM RobberiesRead the Press Release
RIVERSIDE, California – Two men responsible for a series of ATM robberies in which they used power tools and a truck to forcibly open safes inside drive-up ATMs at facilities operated by JP Morgan Chase Bank have pleaded guilty to participating in a conspiracy that stole nearly a half million dollars.
David Joseph Silva Jr., 25, of Fontana, pleaded guilty today to conspiracy to commit bank larceny, a charge that carries a statutory maximum penalty of five years in federal prison.
Silva pleaded guilty before United States District Judge Jesus G. Bernal, who scheduled a sentencing hearing for February 23.
Last Monday, James William Costilow, 38, of Riverside, pleaded guilty to the same conspiracy charge. Judge Bernal scheduled Costilow's sentencing hearing for February 9.
During their guilty pleas, Silva and Costilow admitted that they attempted to break into Chase Bank ATMs in three counties 15 times over a six-month period. The pair successfully got into the safes inside ATMs on four occasions and conspired to steal approximately $462,093 in cash. In some of the thefts, the pair stole the entire ATM device, while in later attempts they used power saws or a “jaws of life” device to gain access to the safe inside the ATMs.
Silva and Costilow were arrested on September 22 after an unsuccessful ATM robbery in Murrieta, in which they first attempted to cut the hinges on the safe doors and then tried to pull the doors off with a truck. The attempt failed when the bumper came off the truck.
This case is the product of an investigation by the FBI and the Murrieta Police Department.
Release No. 14-152
Two Convicted of Selling Bath SaltsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Two Clarksburg area residents were convicted for their role in distributing bath salts, United States Attorney William J. Ihlenfeld, II, announced today.
Stephanie Michelle Furner, 34, of Salem, West Virginia, and Rodney Wayne Swiger, 46, of Clarksburg, West Virginia each pled guilty to one count of “Distribution of Controlled Substance Analogue – Aiding and Abetting.”
An investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, revealed that Furner and Swiger sold bath salts known as “Power X Energy Soak.” The bath salts contained a controlled substance known as “α-Pyrrolidinovalerophenone” or “α-PVP.”
Furner and Swiger each face up to 20 years in prison and a fine of up to $1,000,000.00.
Assistant U.S. Attorney Shawn Morgan prosecuted the cases on behalf of the government.
U.S. Magistrate Judge John S. Kaull presided.
Turtle Creek Man Admits Conspiring to Distribute HeroinRead the Press Release
PITTSBURGH – Clifford Green was convicted of conspiring to distribute over 100 grams of heroin, United States Attorney David J. Hickton announced today.
Green, 29, of Turtle Creek, Pa., pled guilty before United States District Judge Donetta W. Ambrose. Judge Ambrose scheduled sentencing to occur March 16, 2015, at 11 a.m.
The law provides for a maximum total sentence of at least five years up to 40 years in prison, a fine of up to $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation leading to the conviction in this case.