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Friday 14 November 2014
Owner of 'Polygraph.com' Indicted for Allegedly Training Customers to Lie During Federally Administered Polygraph ExaminationsRead the Press Release
A former Oklahoma City law enforcement officer and owner of “Polygraph.com” has been indicted on obstruction of justice and mail fraud charges for allegedly training customers to lie and conceal crimes during polygraph examinations.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting Assistant Commissioner Mark Morgan of U.S. Customs and Border Protection’s Office of Internal Affairs and Special Agent in Charge James E. Finch of the FBI’s Oklahoma City Field Office made the announcement.
Douglas Williams, 69, of Norman, Oklahoma, was charged in a five-count indictment in the Western District of Oklahoma with mail fraud and obstruction. According to allegations in the indictment, Williams, the owner and operator of “Polygraph.com,” marketed his training services to people appearing for polygraph examinations before federal law enforcement agencies, federal intelligence agencies, and state and local law enforcement agencies, as well as people required to take polygraph examinations under the terms of their parole or probation.
The indictment further alleges that Williams trained an individual posing as a federal law enforcement officer to lie and conceal involvement in criminal activity from an internal agency investigation. Williams is also alleged to have trained a second individual posing as an applicant seeking federal employment to lie and conceal crimes in a pre-employment polygraph examination. Williams, who was paid for both training sessions, is alleged to have instructed the individuals to deny having received his polygraph training.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The investigation is being investigated by U.S. Custom and Border Protection’s Office of Internal Affairs and the FBI’s Oklahoma City Field Office. The case is being prosecuted by Trial Attorneys Mark Angehr and Brian K. Kidd of the Criminal Division’s Public Integrity Section.
Norwich Man Charged with Assaulting Federal Officer at Naval Submarine Base in GrotonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that GARY RAY BRUNACHE, 35, of Norwich, has been charged by criminal complaint with federal assault offenses related to an incident that occurred last night at the Naval Submarine Base in Groton.
As alleged in the criminal complaint, on November 13, 2014, BRUNACHE approached three Department of Defense Police Officers outside of Building 500 at the Naval Submarine Base New London in Groton and proceeded to swing a knife at one of the officers. After failing to comply with warnings from the officer, a second officer sprayed BRUNACHE with pepper spray in an effort to subdue him. BRUNACHE then turned on the second officer and stabbed him in his right thigh area. The first officer fired approximately three rounds from his service pistol at BRUNACHE as BRUNACHE was trying to stab the second officer. BRUNACHE, who was not hit by the rounds, was eventually subdued.
BRUNACHE is charged with assault of a federal officer, a charge that carries a maximum term of imprisonment of 20 years, and assault with a dangerous weapon with intent to do bodily harm within the special maritime and territorial jurisdiction of the U.S., a charge that carries a maximum term of imprisonment of 10 years. He appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and is detained pending a detention hearing that is scheduled for November 19 at 12:00 p.m.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Naval Criminal Investigative Service, Federal Bureau of Investigation, Connecticut State Police, Town of Groton Police Department and Norwich Police Department. The case is being prosecuted by Assistant U.S. Attorneys Brian P. Leaming and Robert M. Spector.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]North Georgia Men Sentenced for Plot to Possess A Deadly Biological ToxinRead the Press Release
ATLANTA – Ray H. Adams and Samuel J. Crump have been sentenced to federal prison for possessing and conspiring to possess the biological toxin ricin for use as a weapon.
“Both the words and actions of these defendants supported an idea dangerous to our democracy – that violence is justifiable when citizens grow frustrated with government,” said United States Attorney Sally Quillian Yates. “This case demonstrates that we must remain vigilant in protecting our country, not only from the threat posed by international violent extremists, but also from those within our own borders who threaten our safety and security.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today's sentencing of Adams and Crump concludes a thorough and extensive investigation as well as an equally extensive and intensive prosecution. On this occasion, we would like to remind the public that the FBI's absolute number one priority is to prevent another terrorist attack on U.S. soil. We believe that we did that here. While the FBI fully understands and respects our citizens' rights to free speech, our investigations into these matters always look at the overt actions taken in furtherance of the free speech. While only time would tell the true intentions of these individuals, the FBI and its law enforcement partners cannot wait and the public expects no less from us.”
According to United States Attorney Yates, the evidence, and testimony presented in court: Between March 2011 and November 2011, Ray H. Adams and Samuel J. Crump conspired to produce and possess ricin, a deadly biological toxin. During this time period both defendants and others attended meetings where participants discussed targeting various government officials, including employees of federal agencies. These meetings were monitored by FBI agents through the attendance of a confidential source, who recorded the meetings and provided the information to the FBI.
During a recorded meeting in September 2011, Crump stated that he wanted to make ten pounds of ricin and disperse it in various cities, including Washington, D.C. and Atlanta, Ga. Crump described a scenario for dispersing the ricin in Atlanta in which the toxin would be blown from a car traveling on interstates. Crump allegedly also said that he possessed the ingredient used to make the toxin and cautioned the source about the dangers of handling it.
On November 1, 2011, FBI agents arrested Crump and Adams and executed search warrants at their residences. During a search of Adams’ residence, agents recovered castor plants, castor beans, a recipe for extracting ricin from castor beans, five mason jars and other items. During a search of Crump’s residence agents also recovered castor beans. On December 1, 2011, agents searched a storage unit rented by Crump and recovered castor beans and a copy of the same ricin recipe recovered during a search of Adams’ residence.In June 2013, after receiving information that Adams had successfully extracted ricin from the castor beans, FBI laboratory testing detected ricin in the five mason jars seized from Adams’ property. In July 2013, based on the presence of ricin in the five mason jars, the FBI obtained and executed a second search warrant at Adams’ residence and seized 28 additional mason jars, some labeled as fruit preserves. In November 2013, laboratory testing confirmed the presence of ricin in the 28 mason jars.
FBI experts found that the ricin detected in mason jars was in its non-active state and experts were unable to determine whether the ricin would have been lethal if it were inhaled or ingested. There is no evidence that Adams distributed any jars of preserves that contained ricin.
Adams, 58, of Toccoa, Ga., has been sentenced to ten years in prison to be followed by five years of supervised release. Crump, 71, also of Toccoa, Ga., has also been sentenced to ten years in prison to be followed by five years of supervised release. Adams and Crump were found guilty by a jury on January 17, 2014.
This case was investigated by the Joint Terrorism Task Force (JTTF), which includes agents of the FBI, Federal Protective Service (FPS), Georgia Bureau of Investigation (GBI), and Treasury Inspector General for Tax Administration (TIGTA). Assistance in this case has been provided by law enforcement agencies from Habersham County and Stephens County (Georgia), and the District Attorney’s Office for the
Mountain Judicial Circuit.Assistant United States Attorneys Jeffrey A. Brown and William L. McKinnon, Jr. prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Nixa Man Sentenced to 15 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 today a Nixa, Mo., man has been sentenced in federal court for producing child pornography.
Michael John Kinney, 40, of Nixa, was sentenced by U.S. District Judge Gary A. Fenner on Thursday, Nov. 13, 2014, to 15 years in federal prison without parole. The court also ordered Kinney to pay $3,000 in restitution to a victim of child pornography and a $7,000 fine.
On July 30, 2014, Kinney pleaded guilty to one count of producing child pornography and one count of possessing child pornography. Kinney admitted that he used a minor victim to produce child pornography between Jan. 27, 2007, and Jan. 26, 2009. Kinney also admitted that he was in possession of child pornography on April 29, 2011.
Federal agents executed search warrants at Kinney’s residence and at his business, ABC Baby Goods, which sold children’s furniture and clothing. Agents seized two laptop computers from his residence. Investigators discovered 10 videos of child pornography that were made from a hidden camera in Kinney’s home and additional videos and images of child pornography, including children under the age of six engaged in acts of sexual intercourse with adults or other children. Investigators also discovered numerous images of child erotica, including a child victim in various stages of undress. Kinney must forfeit those computers to the government.
This case was prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the FBI, IRS-Criminal Investigation and the Christian County, Mo., Sheriff’s Department.
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."Mt. Carmel Psychiatrist Charged with Health Care FraudRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania, announced today that charges have been filed against Andrew Newton, a resident of Harrisburg, Pennsylvania.
According to United States Attorney, Peter Smith, Dr. Andrew Newton, age 42, a psychiatrist with an office in Mt. Carmel is charged in a six-count Information with false billings for psychotherapy services. Specifically, it is alleged that between August 2010, and November 2011, Newton billed Medicare for face-to-face therapy sessions when he was in fact out of the country.
The government also filed a plea agreement in the case which is subject to approval of the Court.
The investigation was conducted by the U.S. Department of Health & Human Services, Office of Inspector General, and the Federal Bureau of Investigation – Williamsport office. Assistant United States Attorney Wayne P. Samuelson is assigned to prosecute the case.Indictments 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.
In this case, the maximum penalty under the federal statutes is six years imprisonment, a term of supervised release following imprisonment, and a fine. 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.Michigan Physician Pleads Guilty for Role in $19 Million Medicare Fraud SchemeRead the Press Release
A Detroit-area physician, who orchestrated the submission of fraudulent claims for physician home visits and directed fraudulent referrals for home health care by his employee physicians as part of a $19 million home health care fraud scheme, pleaded guilty today for his role in the conspiracy.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Dr. Rajesh Doshi, 59, of Bloomfield Hills, Michigan, pleaded guilty before Senior U.S. District Judge Arthur J. Tarnow of the Eastern District of Michigan to conspiracy to commit health care fraud and one count of health care fraud. The sentencing hearing is set for March 3, 2015.
According to his plea agreement, Dr. Doshi admitted that between October 2005 and September 2012, he conspired with others to commit health care fraud by referring Medicare beneficiaries for home health care that was not medically necessary, and then submitting false and fraudulent claims for the purported care to Medicare for reimbursement. Dr. Doshi admitted that he submitted these false claims through Home Physicians Services (HPS), a medical practice he owned in Southfield, Michigan. Although Dr. Doshi owned HPS, he hid his ownership because of prior state court convictions.
Specifically, Dr. Doshi admitted that he paid kickbacks to recruiters to obtain Medicare beneficiaries for HPS and home health agencies owned by co-conspirators. Dr. Doshi and his co-conspirators then falsified medical and billing records for purported physician home visits, sometimes adding diagnoses to make it appear that the beneficiaries qualified for and required home care when they did not, and other times, “upcoding” physician home visits to higher levels of complexity than actually performed.
Dr. Doshi also admitted that he solicited and received kickbacks from home health agency owners in exchange for the referral of beneficiaries to those agencies, regardless of whether the beneficiaries qualified for or needed home health care. He then directed HPS physicians to falsify medical documentation and certify Medicare beneficiaries as homebound even though the HPS physicians had never met the beneficiaries or the beneficiaries were not actually homebound.
Between October 2005 and September 2012, Dr. Doshi and his co-conspirators caused Medicare to pay more than $19 million based on false claims. Three other physicians and one physician assistant have already pleaded guilty for their involvement in the health care fraud conspiracy related to the scheme at HPS.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. This case is being prosecuted by Trial Attorney Niall M. O’Donnell of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Mexican Citizen Pleads Guilty to Attempting to Transport A Child for Illegal Sexual ActivityRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Javier Guerrero Molina (age 34, Mexico) has pleaded guilty to attempting to transport a minor child from Las Vegas to Jacksonville with the intent that the child engage in sexual activity with him. Molina is a citizen of Mexico, and an immigration detainer has been placed on him. He faces a minimum mandatory sentence of 10 years, up to a maximum penalty of life imprisonment. Molina was arrested on May 30, 2014, at the Jacksonville International Airport, and he has been in custody since that time.
According to court documents, on May 29, 2014, officers with the Jacksonville Aviation Authority Police Department (JAAPD) received a telephone call from an individual who advised that a female child had disappeared from her home in Las Vegas and was believed to be traveling by air to Jacksonville. JAAPD officers learned that the Las Vegas Metropolitan Police Department (LVMPD) had made a “missing persons” entry regarding a 14-year old girl with the same name. A check of airline manifests confirmed that this child was listed as a passenger on board a flight from Las Vegas to Jacksonville, with a connection in Charlotte, North Carolina. JAAPD coordinated with officers with the Charlotte-Mecklenberg Police Department (CMPD), who intercepted the child at the Charlotte International Airport and took her into protective custody. The child had been scheduled to board a flight from Charlotte to Jacksonville that was due to arrive shortly after midnight on May 30, 2014.
As the expected arrival time for the Jacksonville flight approached, a JAAPD officer observed Javier Guerrero Molina in a waiting area in the Jacksonville International Airport lobby. When asked by the officer, Molina advised that he was there to meet a passenger. Molina was subsequently detained.
During an interview, Molina admitted that he had entered the United States in 1999 or 2000 by paying a smuggler $700 to help him cross the border on foot near Laredo, Texas. Molina stated that he had previously engaged in sexual activity with the child in Jacksonville, before she and her family moved to Las Vegas. He also stated that he had sent the child money to pay for a one-way airline ticket from Las Vegas to Jacksonville, and that he expected their sexual relationship to continue when the child returned to Jacksonville.
This case was investigated by the Jacksonville Aviation Authority Police Department, the Las Vegas Metropolitan Police Department, the Jacksonville Sheriff’s Office, the Federal Bureau of Investigation (Jacksonville and Charlotte, North Carolina), the Charlotte-Mecklenberg Police Department, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Jacksonville State Attorney’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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.
Member of Violent Home Invasion Robbery Crew Convicted of Conspiring to Commit Drug Robberies and Conspiring to Distribute Cocaine and HeroinRead the Press Release
Earlier today, following two weeks of trial, a federal jury in Brooklyn, New York, returned a guilty verdict against Henry Fiorentino on both charges of conspiracy to commit Hobbs Act robberies and to distribute cocaine and heroin. The charges arose out of the defendant’s scheme to rob drug dealers while impersonating New York City police detectives. When sentenced by United States District Judge John Gleeson, the defendant faces a maximum sentence of life imprisonment and a minimum of ten years’ imprisonment on the most serious charge.
The verdict was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and James J. Hunt, Special Agent in Charge, Drug Enforcement Administration, New York.
“Fiorentino tarnished the image of the New York City Police Department and eroded the public’s trust in our law enforcement officers by impersonating them to facilitate his drug robberies,” stated United States Attorney Lynch. “He will now be held to pay the price for his crimes.” Ms. Lynch extended her grateful appreciation to the DEA, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, New York State Police and the New York City Police Department.
Fiorentino was a leading member of a violent robbery crew responsible for more than 100 robberies of narcotics traffickers in the New York metropolitan area and elsewhere that netted more than 250 kilograms of cocaine and $1 million in drug proceeds. Beginning in approximately January 2001, crew members posed as law enforcement officers, staged fake arrests of the traffickers, and then forcibly seized the traffickers’ contraband. Members of the robbery crew restrained victims with handcuffs, rope, and duct tape and often brandished firearms and physically assaulted victims. The crew members then sold the stolen drugs and shared the proceeds.
Fiorentino participated in at least 19 separate robberies and attempted robberies. During these crimes, Fiorentino personally entered the residences and, on numerous occasions, he or his fellow crew members brandished firearms and abducted or restrained victims. During all of these robberies and attempted robberies, Fiorentino posed as a police officer. The robberies and attempted robberies in which Fiorentino directly participated involved at least 230 kilograms of cocaine and approximately $66,000 in drug proceeds.
The government’s case is being prosecuted by Assistant United States Attorneys Alexander Solomon and Sylvia Shweder.
The Defendant:
HENRY FIORENTINO
Age: 46
Bronx, NY
E.D.N.Y. Docket No. 08-CR-242 (S-8) (JG)
Member of "Traveling Group" of Fraudsters Pleads GuiltyRead the Press Release
BOISE — Myron Pardon, 26, from Southfield, Michigan, pleaded guilty yesterday in federal court to aggravated identity theft and credit card fraud, U.S. Attorney Wendy J. Olson announced. The defendant appeared before U.S. Magistrate Judge Candy W. Dale at the federal courthouse in Boise.
According to the plea agreement, Myron Pardon, co-defendant Brandt Stewart and others, were part of a “traveling group” from Detroit, Michigan, that traveled to southern Idaho in December, 2013, and February, 2014, to make purchases at large “box stores” using counterfeit credit cards. Pardon knowingly and with intent to defraud used counterfeit credit cards to purchase “general use” charge cards at ten stores in Twin Falls, Boise and Meridian causing losses in the amount of $4,340.15. Some of the credit cards fraudulently used by Pardon belonged to actual account holders, thus constituting aggravated identity theft.
Pardon, Stewart and Lane were indicted by a federal grand jury on April 9, 2014. Co-defendants Brandt Stewart and Matthew Lane are set for trial on February 2, 2015. Pardon’s sentencing is set for February 2, 2015, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The charge of fraudulent use of a credit card carries a penalty of not more than 10 years in prison, a maximum fine of $250,000, and three years of supervised release. The charge of aggravated identity theft carries a penalty of not more than 10 years in prison with a mandatory minimum penalty of not less than two years in prison consecutive to the penalty imposed for other counts.
“Vigorous prosecution of those who travel here to carry out schemes to defraud Idaho citizens and businesses is a priority of this United States Attorney’s Office,” said Olson. “My office will work effectively and aggressively with local police departments and federal law enforcement agencies to put a quick end to these schemes.”
The case is the result of a joint investigation result of the Boise Police Department, United States Secret Service, and U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Massachusetts Man Sentenced to 1½ Years in Prison for Failure to Pay Child Support and Drug ChargeRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Jay
Dandreo, 53, of Lynn, Massachusetts, was sentenced yesterday in U.S. District Court by Judge
Nancy Torresen to 18 months imprisonment and 5 years of supervised release for willfully
failing to pay child support and possessing with the intent to manufacture or distribute marijuana.
Dandreo was convicted of both charges on July 29, 2014, after a two-day jury trial.According to evidence introduced at trial, in May 2004, the Maine Department of Health
& Human Services (MDHHS) ordered Dandreo to pay for the support of his four minor children.
Between May 2004 and November 2013, Dandreo failed to make any child support payments,
resulting in an unpaid obligation of over $70,000. In August 2012, Maine Drug Enforcement
Agency (MDEA) investigators searched property located in Limerick, Maine owned by
Dandreo’s father and seized 183 marijuana plants growing at several locations on the property,
as well as drug distribution paraphernalia and several firearms.The investigation was conducted by the U.S. Department of Health & Human Services,
Office of Inspector General; MDHHS, Office of Family Independence, Division of Support
Enforcement & Recovery; and MDEA.Manager of Local Housing Complex and Two Associates Sentenced on Identity Theft ChargesRead the Press Release
St. Louis, MO – MARSHA HARRINGTON; CALVIN SHAW and LARRY CORNER, all of the St. Louis area, have been sentenced on charges of conspiracy to commit identity theft and identity theft. Shaw was sentenced late yesterday to 30 months in prison; Harrington was sentenced to 12 months and one day in prison on October 14; and Shaw was sentenced to 24 months prison on November 3. All defendants appeared before United States District Judge Catherine D. Perry.
According to court documents, Marsha Harrington obtained the personal identity information of others, including names and social security numbers, which she used to prepare and file false federal income tax returns and false W-2 forms. In some instances, Harrington obtained the identity information herself. For example, tenants at the Clinton-Peabody Housing Complex provided Harrington, who was the leasing manager at the time, their identity information for use in the fraudulent tax returns. Co-defendants Calvin Shaw and Larry Corner also provided identity information to Harrington. Harrington charged a fee to file the false tax returns. If the tax return used a name and social security number provided by Shaw and/or Corner, she shared those funds with them respectively.
This case was investigated by IRS Criminal Investigation and HUD Office of Inspector General. Assistant United States Attorney Stephen Casey handled the case for the U.S. Attorney's Office.
Man Sentenced to 10 Years in Prison for Transporting 14-Year-Old Girl from California to Reno for SexRead the Press Release
RENO, Nev. – A California man who brought a 14-year-old girl from Richmond, Calif., to the Reno area with the intent that she engage in sexual activity, was sentenced on Nov. 13, 2014, to 10 years in prison and lifetime supervised, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Nicholas Rider Wessel, 38, of Richmond, Calif., pleaded guilty in August to one count of transportation of a minor for illegal sexual activity and was sentenced by U.S. District Judge Miranda M. Du. Judge Du denied Wessel’s request for release on bond pending a prison designation.
“If you prey on underage children on the Internet, you face federal prosecution,” said U.S. Attorney Bogden. “The penalties are stiff, and you will be marked as a sex offender for the rest of your life.”
According to the court records, sometime in May 2014, Wessel began communicating with the 14-year-old girl on Facebook and by cell phone texts. During those conversations, Wessel arranged to pick the girl up in Modesto, Calif. and drive her to his home in Richmond. Wessel knew that she was only 14 years old. On May 5, Wessel picked her up, along with another minor girl, and they drove to his home where he engaged in sexual intercourse with the 14-year-old. The following day, Wessel drove the girl to Reno, and they again engaged in sex at a hotel in Sparks, Nev.
The investigation was conducted by the Sparks Police Department and the FBI. The case was prosecuted by Assistant U.S. Attorney Carla Higginbotham.
The case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC 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 PSC, 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."
Man Sentenced to Time Served for Illegal Re-Entry and Use of A False Social Security Number to Obtain EmploymentRead the Press Release
A man who illegally re-entered the country and used a false social security number to obtain employment in Buena-Vista County was sentenced on November 4, 2014, to time served.
Eswin Marroquin-Asturias, age 38, from Guatemala, received the prison term after an October 1, 2014, guilty plea to one count of illegal re-entry and one count of use of a false social security number.
At the guilty plea, Marroquin-Asturias admitted he had re-entered the United States without permission after being removed from the country on December 15, 2011, and that he had used an illegally obtained social security card to gain employment.
Marroquin-Asturias came to the attention of Homeland Security Investigations’ (HIS) on July 17, 2014, when law enforcement officers conducted surveillance at a residence in Storm Lake, Buena Vista County, Iowa, in an attempt to locate an individual suspected of passport fraud. Marroquin-Asturias voluntarily agreed to speak with law enforcement and admitted he had illegally purchased false identification documents and had used them to obtain employment.Marroquin-Asturias was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Marroquin-Asturias was sentenced to time served.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by HSI and the Enforcement and Removal Office of the Immigration and Customs Enforcement Bureau.
Court file information is available at https//ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-4061.
Man Sentenced to 46 Months for Conspiracy to Traffic Counterfeit GoodsRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn, Jr. sentenced today Ali Fayez Nasrallah, 46, of East Elmhurst, NY, to 46 months in prison for conspiracy to traffic in counterfeit goods and for making false statements on an income tax return, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Judge Cogburn also ordered Nasrallah to pay $623,826 as restitution.
Joining U.S. Attorney Tompkins in making today’s announcement are Brock D. Nicholson, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
According to filed court documents and today’s sentencing hearing, from 2007 to 2010, Nasrallah conspired with others in the Western District of North Carolina and throughout the country to traffic in counterfeit clothing and shoes bearing counterfeit trademarks of numerous manufacturers, including Nike, Gucci, Coach, Timberland, Ralph Lauren Polo, among others. According to court documents and court proceedings, Nasrallah had deposited approximately $8.2 million in various bank account connected with his trafficking in counterfeit goods. On December 2, 2010, agents seized 645 boxes of counterfeit goods worth over $1.5 million from two warehouses operated by Nasrallah in Astoria, NY. Court documents indicate that Nasrallah also falsely stated his business income and taxes owed on his 2008 income tax return.
Nasrallah has been released on bond. Upon designation of a federal facility he will be ordered to report to the custody of the Federal Bureau of Prisons. All federal sentences are served without the possibility of parole.
The investigation is being handled by HSI and IRS. The prosecution for the government was handled by Assistant U.S. Attorneys Tom O’Malley and Ben Bain-Creed of the U.S. Attorney’s Office in Charlotte.
Luzerne County Man Pleads Guilty to Participating in A Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 38-year-old Pittston man pleaded guilty today before Senior U.S. District Court Judge Edwin M. Kosik to conspiring with others to distribute heroin in the Luzerne County area during a four-year time period.
According to United States Attorney Peter Smith, the defendant, Sal Biscotto, admitted to committing the crime between 2010 and February 2014.
Biscotto was charged in a criminal Information filed by the United States Attorney on October 7, 2014, following an investigation by special agents of the Federal Bureau of Investigation.
Biscotto faces a potential maximum sentence of 20 years in prison and a $1 million fine. Sentencing will be scheduled after the completion of a pre-sentence report by the U.S. Probation Office.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Lubbock Man Sentenced to 151 Months in Federal Prison on Methamphetamine Trafficking ConvictionRead the Press Release
LUBBOCK, Texas — Adam Rico, 27, of Lubbock, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 151 months in federal prison following his guilty plea in August 2014 to one count of possession with intent to distribute methamphetamine and aiding and abetting. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Co-defendant Alexis Starr Frausto, 23, also of Lubbock, was sentenced last month to 120 months in federal prison. She pleaded guilty in August 2014 to one count of being a convicted felon in possession of a firearm. Another co-defendant convicted in the case, Amber Lee Bengoa, 26, also of Lubbock, is awaiting sentencing. She pleaded guilty in August 2014 to one count of possessing a firearm in furtherance of a drug trafficking crime and aiding and abetting and faces a statutory penalty of not less than five years and up to life in federal prison and a $250,000 fine.
According to documents filed in the case, in March 2014, the South Plains Auto Theft Task Force received information from OnStar that a stolen vehicle they were attempting to find was located in the area of Lubbock’s North Frankford Storage Zone. Just as OnStar was to activate the vehicle’s horn to assist the Task Force, officers saw Rico coming out of one of the storage units. In response to their inquiry, Rico confirmed that the Camaro was inside the storage unit. After officers observed a semiautomatic rifle leaning against the wall of the storage unit, they entered the unit to perform a protective sweep for additional weapons or individuals. Rico and co-defendant Frausto were the only individuals in the unit, but officers observed methamphetamine in plain view.
Officers obtained a search warrant to search the storage unit and located methamphetamine, cocaine, marijuana, $4,452 in cash, two stolen vehicles, drug packaging and scales. Frausto admitted that she and Rico knowingly possessed the semiautomatic rifle, and she further admitted that she was a convicted felon.
Approximately two weeks later, the Lubbock County Sheriff’s Office, which had been investigating Bengoa for narcotics and counterfeiting, observed her driving a vehicle without a license. During the ensuing traffic stop, it was determined that the two adult passengers in the vehicle were wanted on warrants and were arrested. With Bengoa’s consent, officers searched the vehicle and located, in the front seat, a 9mm semiautomatic handgun, methamphetamine, cocaine, and drug trafficking materials, such as packaging material and scales, all within arms’ reach of Bengoa. She admitted that she and the adult passengers in the vehicle knowingly possessed the firearm in furtherance of intending to distribute the methamphetamine in the vehicle.
The Lubbock County Sheriff’s Office led the investigation, with the assistance of the Lubbock Police Department, South Plains Auto Theft Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Justin Cunningham is in charge of the prosecution.
Local Tax Preparer Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – The owner and operator of a St. Louis County tax preparation service was sentenced for filing false returns and stealing the identities of taxpayers.
RONALD SHONIWA, of Florissant, Missouri, was sentenced to 30 months imprisonment for a stolen identity and tax fraud scheme he perpetrated as the owner of Rapid Tax Service in St. Louis County between 2009 and 2012.
According to the plea agreement, Shoniwa filed 48 false tax returns calling for $188,414 in improper refunds between 2009 and 2012. The refunds were generated by Shoniwa’s false entries as to income and educational expenses so that tax credits would be improperly paid to the individual filer. On numerous occasions, Shoniwa admitted to identity theft by preparing these false returns without the knowledge or authorization of the individual listed on the return.
Shoniwa pled guilty to theft of government funds in July. He appeared today for sentencing before U.S. District Judge Carol E. Jackson.
In addition to the term of imprisonment, Shoniwa was ordered to pay restitution to the United States in the amount of the false returns. A native of Zimbabwe, Shoniwa was also ordered to cooperate in deportation proceedings.
"While most return preparers provide excellent service to their clients, a few unscrupulous tax preparers file false and fraudulent returns to defraud the government, the tax-paying public and their own clients," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. "Protecting taxpayer dollars is a matter we take extremely seriously."
This case was investigated by IRS Criminal Investigation. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney's Office.
Leader of Green Bay Timeshare Resale Scam That Targeted the Elderly Sentenced to Federal PrisonRead the Press Release
United States Attorney James L. Santelle of the Eastern District of Wisconsin, announced that Mark S. Parks (age: 40) of Denmark, Wisconsin, was sentenced to 108 months in federal prison by Chief United States District Court Judge William C. Griesbach. Parks had previously pled guilty to a single count of conspiracy to commit mail and wire fraud and was also subject to an enhanced penalty under the “Senior Citizens Against Marketing Scams” or SCAMS Act for his role in operating a telemarketing fraud that targeted individuals over the age of 55 years old.
Parks was indicted last year along with seven others for his role in operating a fraudulent timeshare resale scheme located in Green Bay, Wisconsin, which resulted in over three thousand victims in all fifty states and Canada being defrauded of approximately $2.5 million. The scheme spanned from April 2007 to April 2011, and operated under several different business entities, including: Integrated Advertising Solutions, National Timeshare Resales, Administrative Timeshare Resales, and Midwest Timeshares. Despite the execution of a federal search warrant in April 2011, evidence showed Parks continued to operate under the name Time4Cash, LLC out of an office in Appleton, Wisconsin, until his arrest in July 2013. The court found that Parks was a leader in the conspiracy, and had worked in numerous timeshare resale scams since 2001.
Evidence showed that timeshare owners, most of them elderly, were contacted by telemarketers and told that “interested buyers” were prepared to purchase their timeshares in exchange for upfront fees ranging from a few hundred dollars to a few thousand dollars. After handing over their payment information, victims received a one page contract which informed them that they were merely paying for “advertising” on the company’s website. Telemarketers determined the fee amount based solely on the vulnerability and susceptibility of the victims to their deceitful sales pitch. Victims that contacted the companies seeking a refund or inquiring about the status of the sale of their timeshare were repeatedly told lies or given excuses designed to keep them from contacting their financial institution and stopping payment to the fraudulent entities. Many of the victims, desperate to unburden themselves of yearly maintenance fees charged by their timeshare resort, had fallen victim to similar schemes in the past.
In pronouncing sentence Chief Judge Griesbach noted the high number of victims, their level of vulnerability, and the millions of dollars in loss suffered as a result of the defendant’s fraud. The judge described Parks’ fraudulent acts as “deliberate and sophisticated” and noted that it was a “very aggravated conspiracy” that “preyed on the elderly in a very cruel way.” In addition to his prison sentence, Parks was ordered to pay restitution to his victims and was placed on three years of supervised release.
This case was a joint investigation by the Federal Bureau of Investigation and the U.S. Postal Inspection Service, with assistance from the Better Business Bureau, and the Wisconsin Department of Agriculture Trade and Consumer Protection. This case was prosecuted by Assistant United States Attorneys Matthew L. Jacobs and Daniel R. Humble.
Over the past decade similar timeshare resale telemarketing schemes have grown exponentially, due to a glut of timeshare ownership and rising maintenance fees. Many of these fraudulent schemes are operated by companies based in Florida and Nevada. Timeshare owners receiving solicitations to sell or advertise their ownership interests should contact the Federal Trade Commission, United States Postal Inspection Service, local FBI office, their State’s office of consumer protection, or State Attorney General’s office
Law Enforcement Arrests Members and Associates of Various White Supremacist Organizations on Drug Trafficking Conspiracy ChargesRead the Press Release
DALLAS — Following a law enforcement operation led by the Texas Department of Public Safety Criminal Investigations Division (DPS-CID), 37 individuals have been charged with federal offenses stemming from their respective roles in a drug distribution conspiracy that operated in North Texas and elsewhere from January 2013 to October 2014, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Defendants who were charged and who are in custody include:
• George Pass, aka “Tennessee,” 40, of Desoto
• Rhonda Long, aka “Queen Saltine,” 51, of Mesquite
• Brandon Crow, 29, of Garland
• Nia Reed, 27, of Rowlett
• John Carl Hall, aka “Scooter,” 34, of Dallas
• Cesar Zarate, 26, of Duncanville
• Sarah West, 27, of Dallas
• Bradley Wiltcher, 40, of Dallas
• Michael Bass, aka “Sleepy,” 45, of Dallas
• Patrick Penney, aka “Pacman,” 29, of Mesquite
• Clifton Clowers, 36, of Mesquite
• Michael McCoy, aka “Bam Bam,” 45, of Garland
• Christopher Jacobo, aka “Taco Chris,” 39, of Garland
• Jason Eastham, 34, of Mesquite
• Cheyenne Miller, aka “CJ,” 36, of Mesquite
• Christopher Arnold, aka “Phreek,” 40, of Denison
• Sean Sharer, aka “Cowboy Sean,” 42, of Mesquite
• Alysha Hayes, 22, of Rowlett
• Jaclyn Hooker, aka “Queen Bee,” 36, of Mesquite
• Francisco Coronado, aka “Frank,” 27, of Dallas
• Kenneth Etter, 25, of Tulsa, Oklahoma
• Joseph Tenpenny, 29, of Tulsa, Oklahoma
• Dusty Bryant, 21, of Tulsa, Oklahoma
• Gregory Oldfield, aka “Casper,” 41, of Garland
• Casey Rose, 35, of Mesquite
• Matthew Hays, aka “Cody,” 32, of Richardson
• Patricia Tucker, aka “Peppermint Patty,” 44, of Mesquite
• Jeffrey Heathington, 37, of Point
• Richard Garcia, aka “Charlie Brown,” 38, of Dallas
• Michael Atkins, aka “Duke,” 38, of Garland
• William McDowell, aka “Scout,” 33, of Mesquite
• Christy McCellon, aka “90,” 38, of Quitman
The just-unsealed superseding indictment in the case charges each of the above defendants with one count of conspiracy to possess with intent to distribute 500 grams or more of methamphetamine. In addition, each of the defendants, with the exception of Garcia and McCellon, is charged with one substantive count of possession of methamphetamine with the intent to distribute. Penney is also charged with one substantive count of possession of heroin with intent to distribute. Crow and Garcia are also each charged with one count of being a felon in possession of a firearm.
Three other individuals, Eliezer Jarillo Gonzalez, 22, Alejando Ornelas, 33 and Javier Eduardo Dominquez, 23, all of Dallas, were also arrested and have been charged in a federal criminal complaint with their roles in the conspiracy.
According to the indictment, the defendants were members of, or associated with, various white supremacist organizations, including the “Aryan Brotherhood of Texas” (ABT), the “Aryan Circle,” the “Irish Mob,” and the “Dirty White Boys.” Despite their differences, they would often collaborate for purposes of drug distribution or other illegal ventures. The indictment alleges that since January 2013, the defendants conspired together, and with others, to possess with intent to distribute 500 grams or more of methamphetamine. According to the indictment, the defendants used stash houses and other locations to store the quantities of methamphetamine. Each of the co-conspirators was linked to one another either directly or through another co-conspirator. Certain co-conspirators acted as hubs for narcotics trafficking, supplying methamphetamine to numerous other co-conspirators. Throughout the investigation, over 16 pounds of methamphetamine and five firearms were seized.
A federal indictment is an accusation by a grand jury. A complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge; the government has 30 days to present the matter to a grand jury for indictment.
A defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the statutory maximum penalty for each count of the drug trafficking conspiracy is life in federal prison and millions of dollars in fines. The statutory maximum penalty for each substantive count of possession of methamphetamine or heroin with the intent to distribute is twenty years. The maximum statutory penalty for being a felon in possession of a firearm is ten years. The indictment also includes a forfeiture allegation which would require the defendants, upon conviction, to forfeit all real or personal property derived from the proceeds of their offense.
The investigation is being led by the DPS-CID Gang Unit with assistance from the Dallas Police Department Criminal Intelligence Unit, the Garland Police Department Neighborhood Police Officer Unit, the Mesquite and Rockwall Police Departments and U.S. Immigrations and Customs Enforcement Homeland Security Investigations.
Assistant U.S. Attorney P. J. Meitl is prosecuting.
Justice Department Files Sexual Harassment Lawsuit in West Virginia Against Owner and Property Managers of Perkins Parke ApartmentsRead the Press Release
The Justice Department announced it has filed a lawsuit against Encore Management Co. Inc., Perkins Parke Limited Partnership and three former employees of Perkins Parke Apartments in Cross Lanes, West Virginia, alleging that female tenants have been subjected to sexual harassment and retaliation in violation of the Fair Housing Act.
The lawsuit, filed today in federal court for the Southern District of West Virginia, alleges that Perkins Parke’s district manager, Anthony James, and maintenance worker, Christopher T. James, have sexually harassed female tenants at the complex, and that Perkins Parke’s site manager, Kisha James, failed to take appropriate steps when residents complained about the harassment. The complaint alleges that such harassment has included entering the residences of female tenants without permission or notice; conditioning housing or housing benefits on female tenants’ agreement to engage in sexual acts; coercing female tenants to engage in unwelcome sexual acts; making unwelcome sexual comments and unwelcome sexual advances to female tenants; subjecting female tenants to unwanted sexual touching and other unwanted sexual acts; and taking adverse actions against female residents when they refused the sexual advances or reported the unwelcome conduct.
“No woman should have to live in fear of sexual harassment in her home,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “The Fair Housing Act protects tenants from sexual harassment and retaliation by their landlords, and the Justice Department enforces the Fair Housing Act to vindicate these important rights.”
“Safe and secure housing is one of humanity’s most basic needs,” said U.S. Attorney R. Booth Goodwin for the Southern District of West Virginia. “Threats to that safety and security, such as those alleged in the complaint, and making housing available contingent upon the performance of unwelcome acts is both a violation of federal law and human decency and will not be tolerated.“
“These housing providers preyed on poor women by sexually harassing them and retaliating against them,” said Gustavo Velasquez, HUD Assistant Secretary for Fair Housing and Equal Opportunity. “HUD is committed to working with the Justice Department to stop this unacceptable and illegal behavior.” The suit seeks monetary damages to compensate the victims, civil penalties, and a court order barring future discrimination.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination at Perkins Parke Apartments or elsewhere can contact the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777.
The complaint is an allegation of unlawful conduct. The allegations must be proven in federal court.
Jacksonville Man Pleads Guilty to Federal Charge of Possessing Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Arnold Bernard Conrad, Jr. (51, Jacksonville) has pleaded guilty to possessing child pornography. He faces a maximum penalty of 10 years in federal prison and life term of supervised release. A sentencing date has not yet been set.
According to court documents, a detective from the Jacksonville Sheriff’s Office began an undercover operation to identify persons using a particular Internet file sharing program to obtain and share child pornography. During the investigation, the detective determined that Conrad was offering images of child pornography for distribution.
On December 15, 2011, a search warrant was executed at Conrad’s residence and two laptops and three external hard drives were seized. During an interview, Conrad stated, among other things, that the age of the youngest child in any of the downloaded child pornography was “maybe six.” Subsequent forensic analyses revealed that the computer media contained 504 images and 145 videos depicting child pornography.
This case was investigated by the Jacksonville Sheriff=s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Strong in Great Falls on November 13, 2014, and entering pleas of Not Guilty were:
KYLE YOUNG, a 33-year-old resident of Hays, appeared on charges of strangulation and assault resulting in serious bodily injury. If convicted of the most serious charges contained in the indictment, YOUNG, faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation.. PACER Case Reference: 14-104
Appearing before U.S. Magistrate Judge Ostby in Billings on November 12, 2014, and entering pleas of Not Guilty were:
KRISTOFER MIKAL WRIGHT, a 27-year-old resident of Cody, Wyoming, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug crime. If convicted of the most serious charges contained in the indictment, WRIGHT, faces life in prison, $5,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference: 14-112
Appearing before U.S. Magistrate Judge Ostby in Billings on November 10, 2014, and entering pleas of Not Guilty were:
JUSTIN JAMES SHELTON, a 32-year-old resident of Billings, appeared on charges of failure to register as a sex offender. If convicted of the charge contained in the indictment, SHELTON, faces 10 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the United States Marshals Service. PACER Case Reference: 14-110
LAWRENCE WALTER LARSON, a 45-year-old resident of Great Falls, appeared on charges of possession with intent to distribute methamphetamine. If convicted of the most serious charges contained in the indictment, LARSON, faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-17
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Hardee County Man Sentenced to More Than 8 Years for Trafficking in MethamphetamineRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell has sentenced Jefferson Lee Kirkland (68, Zolfo Springs) to eight years and one month in federal prison for conspiracy to possess with intent to distribute and to distribute methamphetamine. He pleaded guilty on August 12, 2014.
According to court documents, on March 27, 2014, Kirkland sold a pound of methamphetamine to a confidential source working for DEA. He was arrested later that day. During a search of Kirkland’s residence agents found an additional 5.5 ounces of methamphetamine, a .22 caliber handgun, and a shotgun. Kirkland identified his source of supply as his co-defendant, Jerry Mendez. Agents then arrested Mendez and executed a search warrant at his residence. Inside, they found one pound of pure methamphetamine in a kitchen freezer and a smaller amount of methamphetamine in a bedroom. They also found approximately 100 grams of cocaine powder, $12,400 in currency, and 3 handguns with ammunition inside the home. Mendez later admitted to having another 3 pounds of methamphetamine in the attic of his residence, which the agents found and seized. On September 23, 2014, Mendez pleaded guilty to the same charge as Kirkland. He is scheduled to be sentenced on December 18, 2014. The firearms and cash seized during the course of the investigation have been administratively forfeited.
This case was investigated by the Drug Enforcement Administration and the Hardee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Kathy J.M. Peluso.
Grand Jury Indicts Nampa Woman on Charge of Use of Interstate Commerce Facilities in the Commission of Murder-for-HireRead the Press Release
BOISE – Monique Christine Martinez, 33, of Nampa, Idaho, was indicted on Wednesday, November 12, 2014, by the federal grand jury on one count of using interstate commerce facilities in the commission of murder-for-hire, U.S. Attorney Wendy J. Olson announced. Martinez is in custody of the U.S. Marshals Service, after having been arrested on a warrant on October 22, 2014.
According to the indictment, Martinez contacted an individual by Facebook in California in order to hire someone to kill her husband. On October 17, 2014, Martinez met with an undercover FBI Special Agent, whom she believed was a hit man. Martinez advised the undercover agent that she wanted her husband dead and provided the agent with $350 in U.S. currency and promised additional payment later in the week. She provided the agent with a handwritten note, which contained her husband’s name, the address of his employment and the address of his mother’s home, where he was recently living. Martinez showed the agent photographs of her husband on her smartphone, provided his work schedule, described his tattoos, and described the vehicle he drove. Martinez suggested that the best time to kill her husband was either as he got off work or when he was leaving his gym. Martinez was arrested on October 22, 2014, at her residence in Nampa.
Using interstate commerce facilities in the commission of murder-for-hire is punishable by up to ten years in prison, a $250,000 fine, and three years of supervised release.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force. The Metro Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and the Idaho Department of Correction.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Grand Junction Business Owner Charged with Income Tax EvasionRead the Press Release
DENVER – Michael E. Ho, age 68, of Grand Junction, Colorado, was indicted by a federal grand on October 28, 2014 on charges of income tax evasion, United States Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Ho was arrested yesterday without incident and appeared before a U.S. Magistrate Judge in Grand Junction federal court for his initial appearance, where he was advised of his rights, the charges pending against him, and the penalties associated with those charges. The indictment remained sealed until his initial appearance.
According to the indictment, Ho a resident of Grand Junction and owner of Five-O Enterprises, Inc. (hereinafter “Five-O”), had and received taxable income which was owed to the United States of America an income tax. He willfully attempt to evade and defeat the income tax due and owing by him for the following years:
Year
Taxable Income
Tax Owed
2006
$292,455
$41,682
2007
$214,927
$31,746
2008
$320,647
$69,473
2009
$213,887
$40,578
2010
$124,244
$11,919
2011
$208,537
$40,052
Ho evaded income tax due and owing by committing affirmative acts of evasion. Specifically, between 2006 and 2010, he attempted to conceal his ownership in, and income from a dental practice known as Skyline Dental in Grand Junction, Colorado. Ho operated as a d/b/a (“doing business as”) of Five-O. Ho owned the building in which Skyline Dental was located, and a “consulting” contract with the on-site dentist gave Ho control over almost every aspect of the practice.
In 2009 Ho instructed an accounting firm not to issue a Form 1099 to him for $156,005 in interest payments he received in 2008. In March 2010, Ho converted Skyline Dental to a non-profit corporation called Colorado Community Dental Services, and continued to operate, control and receive income from the dental practice. Between 2006 and 2011, HO willfully and intentionally failed to disclose true and accurate information to his accountant/tax preparer regarding.
Furthermore, Ho did not timely file personal or business income tax returns with or make timely tax payments to the IRS for the tax years 2006 through 2011. In February 2013, after learning of an IRS investigation, Ho caused the preparation and filing of U.S. Income Tax Forms 1040, as well as Forms 1120S prepared for Five-O, for the tax years 2006 through 2011. The income information reported on the forms was false. The Forms 1120S failed to properly report all income earned by Five-O d/b/a Preventative Dental, which unreported income would have flowed through to Ho’s Forms 1040.
Ho was charged with six counts of income tax evasion which carries a penalty of not more than 5 years in federal prison, and a fine of up to $250,000 per count.
This case was investigated by Internal Revenue Service – Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Michelle M. Heldmyer.
The charges contained in the indictment are allegations, and the defendant is presumed innocent until proven guilty.
Georgia Residents Indicted for Retail Fraud SchemeRead the Press Release
Ten Defendants Used Fraudulent Debit Cards to Make Purchases in Treasure Valley
BOISE - Rakeen Anderson, 31, of Atlanta, Georgia, Kyandre Banks, 34, of Lilburn, Georgia, Terrance Barimah, 26, of Floranceville, Georgia, Clarence Collins, 34, of Douglasville, Georgia, Jean Estinville, 26, of Lawrenceville, Georgia, Rashine Kale, 38, of Lawrenceville, Georgia, Charles Moore, 25, of Stone Mountain, Georgia, Jonathan Penn, 20, of Suwanee, Georgia, Brian Treadwell, 25, of Buford, Georgia, and Mikki Williams, 24, of Atlanta, Georgia, were indicted by a federal grand jury Wednesday on charges relating to a wire fraud scheme, U.S. Attorney Wendy J. Olson announced. Banks, Collins, Estinville, Kale, Moore, Penn, Treadwell, and Williams are each charged with conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. Anderson is charged with conspiracy to commit wire fraud and wire fraud. Barimah is charged with conspiracy to commit wire fraud and illegal possession of device-making equipment.
The Boise Police Department arrested each of the defendants on October 6, 2014, on charges of burglary and possession of fraudulent financial transaction cards. Those charges were dismissed as to each of the defendants in light on the federal charges. An arraignment dates has not been set.
The indictment charges the defendants with devising a scheme to defraud retail stores in Idaho by materially false and fraudulent pretenses, representations, and promises, by fraudulently using pre-paid debit cards encoded with unauthorized access device numbers belonging to unknowing third party victims to purchase pre-paid debit and gift cards from retail stores. The indictment alleges that the defendants traveled to Idaho for the purpose of executing their scheme, rented automobiles and hotel rooms, and traveled to numerous retail stores in the Boise area on October 5and 6, 2014. The indictment alleges that the merchandise purchases resulted in an interstate wire transmission, and that the unauthorized access device numbers belonged to real individuals.
“These charges send the clear message that law enforcement in Idaho will work, quickly, cooperatively and aggressively to disrupt traveling fraudulent debit and credit card scams,” said Olson. “Idaho retailers are not open game, and Idahoans will not tolerate this conduct. I commend the outstanding investigative work of the Boise Police Department and the United States Secret Service.”
Conspiracy to commit wire fraud and wire fraud is punishable by up to 20 years in prison, a $250,000 fine, and three years of supervised release. Aggravated identity theft is punishable by a mandatory two years in prison, to be served consecutively to the sentence imposed for the underlying felony. Illegal possession of device-making equipment is punishable by up to 15 years in prison, a $250,000 fine, and three years of supervised release.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Gastonia Man Sentenced to 7-Year Prison Term on Child Pornography ChargesRead the Press Release
CHARLOTTE, N.C. – On Thursday, November 13, 2014, U.S. District Judge Max O. Cogburn, Jr. sentenced Joseph Lee Schaffer, 44, of Gastonia, N.C. to 84 months in prison on child pornography charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. In addition to the prison term, Moore was ordered to register as a sex offender and to serve the rest of his life under court supervision after he is released from prison.
U.S. Attorney Tompkins is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Division and Chief Robert C. Helton of the Gastonia Police Department.
Schaffer pleaded guilty in April 2013 to one count of transportation of child pornography and aiding and abetting the transportation of child pornography and one count of possession of child pornography. According to filed documents and statements made in court, in December 2011, law enforcement became aware of Schaffer’s extensive collection of child pornography which he was downloading from and sharing over the Internet. Court records indicate that law enforcement executed a search warrant at Schaffer’s home and seized his computers. A forensic examination of Schaffer’s computers revealed that he possessed over 6,000 images and hundreds of videos of children being sexually abused, including 1,540 images of child pornography victims under the age of five. Court records show that the child pornography in Schaffer’s possession included at least 87 different children already identified by law enforcement as victims of child pornography.
Schaffer has been ordered to self-report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the FBI and the Gastonia Police Department. Assistant U.S. Attorneys Cortney S. Randall and David A. Thorneloe prosecuted the case.
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 U.S. 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
Former Owner of Empire Towers Indicted in Fraudulent $7 Million Bond SchemeRead the Press Release
Allegedly Misled Over 50 Individual Investors Who Bought Bonds
Baltimore, Maryland - A federal grand jury has indicted Wilfred T. Azar, III, age 53, formerly of Queenstown, Maryland, on charges of securities fraud. The indictment was returned on
November 4, 2014, and unsealed today.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 Sharon B. Binger, Director of the Securities and Exchange Commission’s Philadelphia Regional Office.
Empire Corporation owned Empire Towers Corporation. Empire Towers Corporation’s primary asset was Empire Towers, a 10 story office building in Glen Burnie, Maryland. Azar was president and majority owner of Empire Corporation and Empire Towers Corporation.
The indictment alleges that by January 2006, Empire Corporation could no longer pay its expenses and was effectively insolvent. By 2007, Empire Towers Corporation had exhausted its lines of credit from lending institutions.
From January 2006 to April 2010, Azar caused Empire Corporation to sell bonds to over 50 individual investors for more than $7 million. While many of the bonds were titled “registered,” the bonds were not registered with either the U.S. Securities and Exchange Commission (SEC) or the State of Maryland.
According to the indictment, Azar falsely told investors that Empire Corporation was in good financial health, and that the money would be used to renovate the Empire Towers office building. Azar failed to inform investors that he used most of the money raised from previous bond sales for his own personal purposes. Although the bonds were issued by Empire Corporation, Azar diverted millions of dollars of proceeds from the bond sales to his own bank account and the bank accounts of other companies that he controlled. He used the money to pay his personal expenses, including the purchase of luxury vehicles and vacations, as well as to finance his other real estate ventures and yacht brokerage business.
Azar faces a maximum sentence of 20 years in prison. No court appearance has been scheduled.
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.
Also today, the SEC has filed a complaint against Azar and another individual in connection with the scheme.
United States Attorney Rod J. Rosenstein praised the FBI and SEC for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Gregory Bockin and Trial Attorney Kenneth Vert of the U.S. Justice Department, Tax Division, who are prosecuting the case.
Former Executives of Nuclear Power Company IndictedRead the Press Release
Donald L. Gillispie and Jennifer R. Ransom Charged with 14 Counts of Conspiracy, Securities and Wire Fraud, False Tax Returns, False Statements
BOISE - Donald L. Gillispie, 71, of Meridian, Idaho, and Jennifer R. Ransom, 40, of Meridian, Idaho, were indicted November 13, 2014, by a federal grand jury sitting in Boise. The defendants were charged with 14 counts of conspiracy, securities fraud, wire fraud, filing false tax returns, and making false statements to federal agents, U.S. Attorney Wendy J. Olson announced. An initial appearance is set for Gillispie on November 14, 2014.
The indictment alleges that the defendants were executives of Alternate Energy Holdings, Inc. (“AEHI”), a development stage company headquartered in Eagle, Idaho, that planned to construct and operate a nuclear power plant in Payette County, Idaho. Mr. Gillispie was the founder, and at various times since 2006, the President, Chief Executive Officer, Chief Operating Officer, Director, and Chairman, of AEHI. Ms. Ransom was the Senior Vice President of Administration and Secretary of AEHI.
The indictment alleges that, beginning in October of 2006, and continuing through December of 2010, the defendants conspired to manipulate and inflate the market price of AEHI stock, which was traded on the public over-the-counter and Pink Sheet markets. According to the indictment, the purpose of attempting to inflate the market price of AEHI was to attract private investors to purchase AEHI stock – which AEHI offered to them at a discount from the market price – and thus obtain cash financing for the company. The indictment alleges that, the defendants recruited nominees to purchase AEHI stock, provided them with company funds, and instructed them on the timing, quantity, and price to purchase AEHI stock, so as to most effectively attempt to artificially inflate the price.
According to the indictment, during a period when attempts were being made to artificially inflate the price of AEHI stock, Ms. Ransom sold approximately 1,000,000 shares of her AEHI stock and received approximately $675,326 in return. Of this amount, she provided approximately $190,000 to Mr. Gillispie. Also during this period, relatives of Mr. Gillispie sold approximately 10,778,000 shares of their AEHI stock and received approximately $3,715,927 in return.
The indictment alleges that, from October of 2006 to October of 2010, AEHI raised approximately $14 million in capital financing from private investors. During this period of time, AEHI did not generate any material income. From the $14 million in investor money, the defendants received significant salaries and other compensation that they did not report as income to the Internal Revenue Service.
According to the indictment, Ms. Ransom made false statements to a tax compliance officer during a civil audit interview, and later, to investigating law enforcement agents of the Internal Revenue Service and Federal Bureau of Investigation.
“Those who manipulate securities markets and deceive investors pose a significant risk to our financial system,” said Olson. “Those who further defraud the United States and their fellow tax payers by failing to pay taxes on their ill-gotten gains must not be allowed to manipulate the system. The Department of Justice and its federal law enforcement partners will vigorously investigate and prosecute such conduct.”
“Their motivation in this stock scheme was based purely on greed which was coupled with tax fraud and lying to IRS agents,” said Stephen Boyd, IRS Criminal Investigation Special Agent in Charge for the state of Idaho.
The charge of conspiracy to commit securities fraud is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release. The charge of securities fraud is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release. The charge of wire fraud is punishable by up to 20 years in prison, a maximum fine of $250,000, and up to three years of supervised release. The charge of filing false tax returns is punishable by up to three years in prison, a maximum fine of $100,000, and up to one year of supervised release. The charge of false statements to federal agents is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release.
The case is being investigated by the Internal Revenue Service, Criminal Investigation Division, and the Federal Bureau of Investigation. The case is being prosecuted by the United States Attorney’s Office, District of Idaho, and the United States Department of Justice, Tax Division.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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.
Former Education Exec Sentenced for Stealing from Program Receiving Federal FundsRead the Press Release
PITTSBURGH - A resident of Grove City, Pennsylvania, has been sentenced in federal court to three years probation, which includes two months in a community confinement center, 150 hours of community service, and a $2,000 fine on her conviction of theft concerning a program receiving federal funds, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Cecelia Yauger, 56.
According to information presented to the court, from in and around January 2012, to in and around December 2012, Yauger, being an agent of the Midwestern Intermediate Unit IV (“IU4”), did knowingly steal property worth at least $5,000, which was owned by and under the custody and control of IU4.
Assistant United States Attorney Robert S. Cessar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Postal Inspection Service, and the United States Department of Education, Office of Inspector General for the investigation leading to the successful prosecution of Yauger.
Former Eaton Employee Indicted for Installing MalwareRead the Press Release
A federal indictment was unsealed today charging Arturas Samoilovas, age 35, of Stow, Ohio, with one count of transmitting and attempting to transmit computer codes, programs or commands, intending to cause damage to a protected computer, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
“This defendant sought to disrupt a company’s operations through its computer system,” Dettelbach said. “Cyber security is a priority for our office, to protect both our national security and the companies and employers in our district.”
“Mr. Samoilovas, a former contractor at Eaton with considerable knowledge of the company's computer networks, must be held responsible for his criminal actions,” Anthony said. “If activated, his placement of malicious software, also known as ‘malware’, would have caused significant damage to Eaton Corporation's internal computer network.”
Samoilovas was employed at Eaton Corporation as a contract employee between November 2013 and May 21, 2014, where he worked as a financial analyst. Samoilovas applied for several other positions at Eaton prior to the expiration of his temporary employment contract, but was not selected, according to the indictment.
On or about May 21, 2014, Samoilovas accessed the Eaton Corporation computer system and inserted certain malicious computer codes, programs or instructions which would delete files or data from the Eaton Corporation computer system. The malicious code was discovered after Samoilovas contacted a former co-worker on May 23, 2014, and disclosed the existence of the malicious code, according to the indictment.
The case is being prosecuted by Assistant United States Attorney Robert W. Kern following an investigation by the Cleveland office of the Federal Bureau of Investigation.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Crisp & Cole Office Manager Sentenced to 18 Months in PrisonRead the Press Release
FRESNO, Calif. – United States District Judge Lawrence J. O’Neill sentenced Sneha Ramesh Mohammadi, 52, of Bakersfield, to 18 months in prison, to be followed by five years of supervised release, for her involvement in an extensive mortgage fraud scheme that ran from January 2004 to September 2007, United States Attorney Benjamin B. Wagner announced today. Judge O’Neill also ordered her to join her co-defendants in paying $10,747,073 in restitution.
According to court documents, David Crisp and Carl Cole owned and operated Crisp & Cole Real Estate (CCRE) and Tower Lending, an affiliated mortgage brokerage. Between January 2004 and September 2007, these defendants and others at CCRE and Tower Lending carried out a scheme to defraud mortgage companies and federally insured financial institutions, in part by using straw purchasers to acquire properties with funds borrowed from lenders based on false and fraudulent loan applications. The properties were nominally owned in the names of the straw buyers, but were controlled by the defendants and CCRE, and held for the benefit of the defendants and CCRE. According to her plea agreement, Mohammadi, who worked as the office manager at Tower Lending and then as a financial officer at CCRE between March 2005 and April 2007, admitted causing lenders losses of more than $10 million based on her involvement in the conspiracy. In addition to her role as an employee of CCRE, Mohammadi also admitted purchasing properties as a straw buyer based on false and fraudulent applications and receiving cash payments for acting as a straw buyer, all in furtherance of the conspiracy.
Mohammadi is the last defendant to be sentenced among nine others who were indicted in 2011 for their roles in the Crisp & Cole mortgage fraud scheme. David Crisp and Carl Cole each were sentenced to 17 years and seven months in prison. CCRE Chief Operations Officer Julie Farmer, the only defendant who took her case to trial, was sentenced to three years in prison. Loan officer Jayson Peter Costa was sentenced to six years and six months in prison. Real estate agent Michael Munoz was sentenced to two years in prison. Caleb Cole was sentenced to five months in prison. Jennifer Crisp was sentenced to five years of probation. Robinson Nguyen has completed his 27-month sentence.
Before Mohammadi and the other Crisp & Cole defendants were indicted, five separate cases were brought, in 2009 and 2010, against five defendants who pleaded guilty to charges relating to the Crisp & Cole scheme. Jerald Allen Teixeira is scheduled to be sentenced on February 9, 2015. The sentences for the other defendants are as follows: Megan Balod – 36 months’ probation; Christopher Lance Stovall – one year in prison; Kevin Patrick Sluga – 20 months in prison; and Leslie Sluga – three years’ probation.
The Crisp & Cole case was prosecuted by Assistant U.S. Attorneys Kirk E. Sherriff, Henry Z. Carbajal III, and Christopher D. Baker.
This case was investigated and prosecuted in coordination with the President’s Financial Fraud Enforcement Task Force. The task force was established 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 is 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 nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Former Amazon Recruiter Sentenced to Prison for Welfare FraudRead the Press Release
A former executive recruiter for Amazon.com was sentenced today in U.S. District Court in Tacoma to one month in prison and three years of supervised release for Social Security fraud, announced Acting United States Attorney Annette L. Hayes. Between 2009 and 2012, MARLENE SCOTT, 42, concealed the fact that her mother and sister, who were welfare recipients, had moved from the United States to Lebanon and therefore were no longer entitled to collect welfare benefits in this country. SCOTT falsely told caseworkers that her mother and sister lived with her in the Magnolia neighborhood of Seattle. By hiding her mother and sister’s departure, defendant caused the Social Security Administration to pay out more than $50,000 in benefits, which Scott then withdrew. U.S. District Judge Ronald B. Leighton noted that SCOTT took the witness stand and lied when the case went to trial in June 2014. The judge declared a mistrial after the jury was unable to reach a unanimous verdict. Judge Leighton said the story SCOTT told on the witness stand was “preposterous.” Judge Leighton said Scott’s lies on the witness stand “were a profound offense to the legal system,” and, but for the false testimony, he might have given her a probationary sentence.
According to records filed in the case, SCOTT’s mother and sister moved to Lebanon in June 2009. The following year the women visited Scott in Seattle. They opened bank accounts in Magnolia and had their welfare payments deposited into those accounts. SCOTT repeatedly accessed the benefits by using her mother’s debit card or by forging her mother’s signature. During the 2010 visit, SCOTT called Social Security and claimed her mother was living in her home and SCOTT was charging her mother fair market rent. SCOTT forged her mother’s signature on forms and lied to Social Security personal when they called asking to speak to SCOTT’s mother. When investigators visited her home, SCOTT claimed her mother was visiting her sister and brother in North Carolina and provided a non-working phone number. SCOTT knew at the time that no one in her family remained in North Carolina since her brother had moved from there to Lebanon in 2003.
After the jury failed to return a verdict, SCOTT pleaded guilty on July 25, 2014. In accordance with the plea she repaid $50,973 to the government.
As prosecutors pointed out in their sentencing memorandum, those who defraud Social Security are stealing from the very poorest and most vulnerable Americans. Worse, fraud on the welfare system corrodes the trust required to maintain programs that provide a lifeline of last resort for the poor. Taxpayers contribute to SSI based on trust that the funds will be used to support others in real need. When someone like SCOTT, an Amazon professional, intentionally exploits that trust through fraud, the result is public cynicism, which further undermines these programs. The true victims of this offense are those genuinely in need.
In choosing to impose a prison term instead of home confinement, Judge Leighton said the prison time is “important as a message. This institution, the judiciary, cannot and will not knowingly tolerate perjury.”
The case was investigated by the Social Security Administration Office of Inspector General (SSA-OIG). The case was prosecuted by Assistant United States Attorneys Seth Wilkinson and Kate Crisham.
Felon Sentenced to Federal Prison for Brookings Gun PossessionRead the Press Release
MEDFORD, Ore. - On Monday, November 10, 2014, Senior U.S. District Judge Owen M. Panner sentenced Tyson Maurice Brown, 27, of Portland, Oregon, to 57 months in federal prison, after he pleaded guilty to being a felon in possession of a firearm. Brown will also be on three years of supervised release after he completes his prison term.
On June 6, 2013, a Brookings Police Department Sergeant stopped a stolen vehicle that Brown was driving. Brown and his two passengers were arrested. Police searched the vehicle and found a Ruger 9mm handgun with two loaded magazines in Brown’s bag. Police traced the weapon and determined that Brown was present when the firearm was purchased at a store in Medford, Oregon.
Police also found approximately ten grams of methamphetamine, cocaine, marijuana, digital scales, drug paraphernalia, ammunition, five cell phones, and over $2,000 cash in various locations in the vehicle.
Brown has prior felony convictions for unlawful manufacture/delivery/possession of cocaine in 2009 and robbery in the second degree in 2004.
This case was investigated jointly by the Brookings, Oregon Police Department and the U.S. Bureau of Alcohol, Tobacco, and Firearms, and was prosecuted by Assistant U.S. Attorney Judith R. Harper.
East Alton Man Sentenced for Drug and Money Laundering OffensesRead the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced that Demarcus L. Freeman was sentenced to 151 months in federal prison by the U.S. District Court in East St. Louis on Thursday, November 13, 2014.
Freeman, 33, is an East Alton resident. On August 7, 2014, Freeman pled guilty to federal charges of Distribution of Cocaine Base (“crack cocaine”) (2 counts); Possession With Intent to Distribute Cocaine Base; and Money Laundering.
At his change of plea hearing, Freeman admitted selling crack cocaine in Wood River, Illinois, on May 13, 2013 and again on June 4, 2013. Police stopped Freeman’s car on July 8, 2013, in Bethalto, Illinois, and seized 9 ounces of crack cocaine. Freeman admitted the cocaine in his car belonged to him.
Freeman also opened a credit union account in Wood River in the name of a relative. Freeman admitted laundering the proceeds of his drug dealing through the account, in an attempt to disguise the source of the money. Freeman laundered over $60,000. The federal government seized $10,010.39 from the account at the time of Freeman’s arrest. The United States Attorney’s Office has moved to forfeit the $10,000 as drug trafficking proceeds.
At Freeman’s sentence hearing on November 13, 2014, U.S. District Court Judge Michael J. Reagan commented that “the 151 month sentence I have imposed is driven primarily by deterrence and the need to protect the public.” Judge Reagan noted that Freeman is a “career offender” under applicable federal sentencing guidelines, and that Freeman has numerous prior felony convictions for dealing drugs and domestic battery.
The investigation which resulted in Freeman’s arrest and conviction was conducted by the Wood River Police Department and the Drug Enforcement Administration.
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
District Man Sentenced to 10 Years in Prison for Armed Robbery at Northwest Washington Laundromat-Defendant Attacked Victim with A Box-Cutter Knife -Read the Press Release
WASHINGTON – Saleem Elamin, also known as Tariq El-Amin, was sentenced today to 10 years in prison for an armed robbery of a woman he attacked and cut with a knife at a Northwest Washington laundromat, U.S. Attorney Ronald C. Machen Jr. announced.
Elamin, 33, of Washington, D.C., was found guilty by a jury in September 2014, following a trial in the Superior Court of the District of Columbia. At sentencing, the Honorable William M. Jackson called the defendant’s violence in cutting the victim with the knife “gratuitous.” Following completion of his prison term, Elamin will be placed on five years of supervised release.
According to the government’s evidence, on May 6, 2014, at about 2:30 p.m., Elamin walked into a laundromat in the 1200 block of Underwood Street NW. The victim, a customer, was sitting and waiting for her clothes to finish washing. Elamin had a box-cutter knife concealed in the sleeve of his jacket. Without saying anything, he cut the victim’s arm, grabbed her purse off her lap, and ran out. A witness followed him out of the laundromat, and chased him as he fled into a nearby alley.
Officers with the Metropolitan Police Department (MPD) later found Elamin in a stairwell off the alley, with the knife and purse at his feet. The victim and eyewitness identified him at the scene. Elamin also gave a statement to police in which he admitted the crime.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Melissa Milam; Paralegal Specialists Nicole McGhee and Wanda Trice, and Assistant U.S. Attorney Christopher M. Bruckmann, of the Felony Major Crimes Trial Section, who investigated and prosecuted the matter.
14-256Desperado's Owner Sentenced to 72 Months in Prison for Racketeering ConspiracyRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Desperado’s Cabaret owner James Panos was sentenced to 72 months in prison for racketeering conspiracy.
James “Jim” Panos, 56, of Broussard, La., was sentenced by U.S. District Judge Elizabeth E. Foote for one count of racketeering conspiracy at the now closed Desperado’s Cabaret in Carencro, La. He was also sentenced to two years of supervised release and agreed to forfeit illegal proceeds, 10 firearms already seized, the Desperado’s property, to include the building and land.
In addition to Panos, his wife, Jennifer Panos, 48, of Broussard, was also sentenced to 48 months in prison and two years of supervised release for one count of racketeering conspiracy, as well as forfeiture of the items listed.
The following former Desperado’s employees were also sentenced today for one count of conspiracy to maintain drug involved premises and distribution of controlled substances:
- Tanja Clavier, 29, of Church Point, La. was sentenced to five years probation.
- Acquila Latigue, 28, of New Iberia, La., was sentenced to five years probation.
“The defendants conspired to promote an environment of drug abuse and prostitution in our community without regard to the harm it caused,” Finley stated. “This office will continue to work to prosecute anyone who violates the law and damages our communities with these types of activities. I want to thank the law enforcement agencies for their hard work.”
James Panos, Jennifer Panos, Clavier and Latigue are the last defendants in a 10-count indictment to be sentenced. They were charged on May 15, 2013, in an indictment alleging racketeering conspiracy, drug conspiracy, and firearms charges. The charges are the result of an investigation of drug trafficking, drug distribution, prostitution, and other illegal activity that took place at Desperado’s Cabaret in Carencro located on Northeast Evangeline Thruway.
On August 7, 2014, Desperado’s co-owner Dipak Vora, 70, of Baton Rouge, and five others were also sentenced for their roles in the illegal activity at Desperados’. Vora was sentenced to 10 months in prison, one year of supervised release and a $10,000 fine for one count of interstate and foreign travel or transportation in aid of racketeering, and Gerald Cormier, 44, of Carencro, was sentenced to 29 months in prison and one year of supervised release on his conviction for distribution of cocaine.
The following former Desperado’s employees were sentenced August 7, 2014 for one count of conspiracy to maintain drug involved premises and distribution of controlled substances:
- Elias “E.J.” White, 53, of Lafayette, was sentenced to 54 months of probation;
- Heike Slattery, 42, of Carencro, was sentenced to two years of probation;
- Crystal Sampy, 32, of Lafayette, was sentenced to three years of probation and a $1,000 fine.
- Lydia “Unique” Gauthreaux, 32, of Crowley, was sentenced to three years of probation and a $1,000 fine.
In total, 10 defendants were convicted of felony racketeering and drug charges, approximately $1.2 million in assets and proceeds were seized and forfeited, and Desperado’s has been closed since December 5, 2012, and will remain so indefinitely. The U.S. Drug Enforcement Administration, the Federal Bureau of Investigation, the U.S. Department of Homeland Security Investigations, Louisiana State Police and Lafayette Metro Narcotics investigated the case. Assistant United States Attorneys Myers Namie and Daniel McCoy prosecuted the case.
DC Heroin Dealer Sentenced to 25 Years in PrisonRead the Press Release
ALEXANDRIA, Va. – Antowan Thorne, also known as “Smooth,” 37, of Washington, DC, was sentenced today to 300 months in prison, followed by five years of supervised release, for conspiring to distribute 100 grams or more of heroin.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
Thorne was found guilty on August 20, 2014 of conspiracy to distribute 100 grams or more of heroin following a bench trial before Judge Brinkema. According to court documents, Thorne was a DC-based heroin dealer that targeted young individuals from northern Virginia as customers. On August 21, 2013, the defendant sold heroin to a group of individuals from Fairfax County, Virginia, including 16-year-old Emylee Lonczak. According to testimony at trial, Lonczak became unconscious immediately after ingesting a portion of the heroin sold by Thorne. Lonczak was found dead the following morning, and a toxicology report found a fatal level of morphine (as a result of heroin) in her system.
This case was investigated by the DEA and the Fairfax County Police Department. Assistant U.S. Attorney Michael P. Ben’Ary and Virginia Assistant Attorney General and Special Assistant U.S. Attorney Marc J. Birnbaum prosecuted the case.
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 may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-165.Tweet
Colorado Man Sentenced to 7 Years in Prison on Charges Related to Stealing Verizon Telecommunications EquipmentRead the Press Release
TULSA, Okla. — A Colorado man was sentenced today by United States District Court Judge John E. Dowdell to serve 84 months in prison and three years of supervised release for charges related to stealing and selling millions of dollars’ worth of Verizon Communications telecommunications equipment, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
On August 13, 2014, Jesse Michael Greenwald, 59, of Colorado, pleaded guilty to conspiring to commit money laundering. Other defendants charged in the same Indictment were Scott Gollan, 26, and Michael Greenwald, 25, both of Bastrop, Texas, and James Pennoyer, 49, of Tulsa. Michael Greenwald, Gollan, and Pennoyer have also pleaded guilty to charges arising from the thefts from Verizon and are awaiting sentencing.According to court documents filed in the case, from July 2009 to May 2014, Pennoyer was a contract employee at the Verizon Communications warehouse in Tulsa, and aided the other defendants in stealing telecommunications equipment from the warehouse. The defendants transported the stolen equipment to Colorado Springs, Colorado, and stored it in a facility to be sold at a later date. Much of the equipment was sold to a company in North Carolina, which made substantial payments to Greenwald and his co-conspirators. The conspirators, including Greenwald, then used the funds to engage in illegal monetary transactions of more than $10,000 each.
In addition to the prison sentence, United States District Judge Dowdell ordered Jesse Greenwald to pay restitution in the amount of $4,419,125.
The case was investigated by the Federal Bureau of Investigation and the IRS-Criminal Investigation. The case was prosecuted by Assistant United States Attorneys Jeffrey A. Gallant and Kevin C. Leitch on behalf of the United States.
U.S. v. Jesse Michael Greenwald
Cocaine Dealer in Eastern Shore Ring Sentenced to Nine Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Anthony Hardy, age 43, of Nanticoke, Maryland, today to nine years in prison followed by five years of supervised release for conspiring to distribute cocaine.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Wicomico County Sheriff Michael A. Lewis; Salisbury Police Chief Barbara Duncan; Chief Michael Phillips of the Fruitland Police Department; U.S. Marshal Johnny Hughes; and Wicomico County State’s Attorney Matthew Maciarello.
According to his guilty plea, Hardy conspired with Maurice Hardy (no relation) and others to distribute cocaine. Anthony Hardy supplied Maurice Hardy with cocaine on several occasions during the course of the investigation and was overheard on by law enforcement discussing drug transactions with Maurice Hardy. Maurice Hardy’s primary source of supply was Austin Roberts. On May 11, 2011, Hardy indicated in a telephone call to Anthony Hardy that Roberts would be supplying him with seven kilograms of cocaine for $31,500 per kilogram. The next day in Salisbury, Maryland, Andrew Jackson, under Roberts’ direction, provided several kilograms of cocaine to Maurice Hardy. Subsequent to this meeting, law enforcement stopped Jackson’s vehicle and seized over $160,000 from a hidden compartment.
On June 28, 2011, during a telephone call, Anthony Hardy told Maurice Hardy that he had 12 kilograms of cocaine. Maurice Hardy agreed to purchase two kilograms of cocaine at $33,000 per kilogram. According to his plea agreement, Anthony Hardy did not actually have 12 kilograms of cocaine in his possession. This is reflected by the fact that the next day, Anthony Hardy met Maurice Hardy in Nanticoke, and provided Maurice Hardy with 1.027 kilograms of cocaine, not two kilograms as had been agreed upon. After the meeting, law enforcement stopped Maurice Hardy’s car and seized the cocaine.
During the course of the conspiracy, Anthony Hardy and his co-conspirators distributed over 5 kilograms of cocaine.
Maurice Kenneth Hardy, age 37, of Bridgeville, Delaware, pleaded guilty to his role in the conspiracy and was sentenced to 16 years in prison. Austin Roberts, III, age 37, formerly of Elkridge, Maryland; Andrew Jackson, age 39, of Baltimore, Maryland; and Tereek Nutter, age 30, of Salisbury, Maryland, also pleaded guilty to their participation in the drug conspiracy and were sentenced to 19 years in prison,10 years in prison and 151 months in prison, respectively.
United States Attorney Rod J. Rosenstein commended the DEA, U.S. Marshals Service and the Wicomico County Narcotics Task Force, comprised of the Maryland State Police, Wicomico County Sheriff’s Office, Salisbury Police Department, Fruitland Police Department, and the Wicomico County State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorney Peter J. Martinez, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Clarksburg Woman Sentenced in Detroit to WV Painkiller Distribution NetworkRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Jaunita Farnsworth, 31, of Clarksburg, West Virginia, was sentenced to 37 months in prison for her role in an oxycodone distribution network, United States Attorney William J. Ihlenfeld, II, announced today.
Farnsworth pled guilty in March 2014 to one count of “Possession with Intent to Distribute Oxycodone.” An investigation by the Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives uncovered the painkiller distribution network. Oxycodone pills were transported from Detroit, Michigan to West Virginia. Farnsworth, among others, redistributed the painkillers in the community.As part of the sentence, Farnsworth was also ordered to forfeit two firearms, ammunition and $5,947.00 in currency.
Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Cincinnati, Ohio, Man Pleads Guilty to Sex TraffickingRead the Press Release
– Victims were boarded and locked inside his Cincinnati home and driven from Cincinnati to Louisville for prostitution
LOUISVILLE Ky. – A Cincinnati, OH, man pleaded guilty in U.S. District Court today to multiple charges including commercial sex trafficking, announced Acting Assistant Attorney General Vanita Gupta and U.S. Attorney for the Western District of Kentucky David J. Hale.
Christopher Hisle, 45, was arrested on April 8, 2014, in Louisville, Kentucky after he drove a young woman from Cincinnati to Louisville to engage in prostitution at the Red Roof Inn on Blairwood Road. A subsequent FBI investigation revealed Hisle’s involvement in forcing and compelling multiple young women to engage in commercial sex.
Hisle pleaded guilty before Senior District Court Judge John G. Heyburn II today to a four-count federal indictment including one count of sex trafficking by force, fraud, or coercion, two counts of enticing a person to travel in interstate commerce for the purpose of prostitution and one count of interstate transportation for the purpose of prostitution.
According to the plea agreement, Hisle physically assaulted several of the victims, including striking one of the victims in the face when she threatened to run away. Hisle locked the victims in his house in Cincinnati, by boarding and locking all the doors and windows. Only the front door was capable of opening, and only Hisle had the key to the front door, which locked on both sides allowing Hisle to lock the women in the house when he left. On one occasion, a young woman escaped, only to be found and brought back to the house by Hisle.
“This defendant preyed on vulnerable young victims and cruelly exploited them for his profit,” stated Acting Assistant Attorney General Vanita Gupta. “Our Constitution guarantees freedom from involuntary servitude and slavery to all members of our society, and we will continue to enforce our human trafficking laws to restore the rights, freedom and dignity to victims of modern-day slavery.”
“My office is committed to seeking justice for victims of human trafficking,” stated U.S. Attorney David J. Hale. “Tragically, these crimes so often pass without detection because victims live in fear from physical abuse, threats and other forms of coercion. My office has worked to improve detection and prosecution by sponsoring training for our federal and local law enforcement partners.”
“Sex Trafficking is a crime that victimizes people in a highly personal manner. Victims often feel as if they have no options and no hope. Detecting sex trafficking is essential to stopping it. The FBI works with State and Local partners to uncover this heinous crime. If you believe you are a victim of sex trafficking or may have information about a particular trafficking situation, please contact the FBI,” said FBI Special Agent in Charge Howard S. Marshall.
Hisle faces a mandatory minimum sentence of 15 years in prison. Sentencing has been set for February 9, 2015 in Louisville. As part of his plea agreement, Hisle will pay restitution to 12 women identified as victims of Hisle’s human trafficking crimes.
This case is being prosecuted by Assistant U.S. Attorney Amanda E. Gregory of the U.S. Attorney’s Office for the Western District of Kentucky and Trial Attorney William Nolan of the Civil Rights Division’s Human Trafficking Prosecution Unit and is being investigated by the FBI.
Cincinnati Man Pleads Guilty to Sex Trafficking by Force, Fraud and CoercionRead the Press Release
A Cincinnati resident, Christopher Hisle, 45, pleaded guilty today to one count of commercial sex trafficking by force, fraud or coercion, two counts of enticing a person to travel in interstate commerce for the purpose of prostitution and one count of interstate transportation for the purpose of prostitution. Police arrested Hisle on April 8, 2014, in Louisville, Kentucky, after discovering Hisle drove a young woman from Cincinnati to Louisville to engage in prostitution at a Red Roof Inn. A subsequent FBI investigation revealed Hisle’s involvement in forcing and compelling multiple young women to engage in commercial sex.
According to the plea agreement, Hisle physically assaulted several of the victims, including striking one of the victims in the face when she threatened to run away. Hisle locked the victims in his house in Cincinnati by boarding and locking all the doors and windows, including locking the women in the house when he left. On one occasion, a young woman escaped, but Hisle found her and brought her back.
“This defendant preyed on vulnerable young victims and cruelly exploited them for his profit,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “Our Constitution guarantees freedom from involuntary servitude and slavery to all members of our society, and we will continue to enforce our human trafficking laws to restore the rights, freedom and dignity to victims of modern-day slavery.”
“My office is committed to seeking justice for victims of human trafficking,” said U.S. Attorney David J. Hale for the Western District of Kentucky. “Tragically, these crimes so often pass without detection because victims live in fear from physical abuse, threats and other forms of coercion. My office has worked to improve detection and prosecution by sponsoring training for our federal and local law enforcement partners.”
“Sex Trafficking is a crime that victimizes people in a highly personal manner,” said Special Agent in Charge Howard S. Marshall of the FBI’s Louisville Office. “Victims often feel as if they have no options and no hope. Detecting sex trafficking is essential to stopping it. The FBI works with state and local partners to uncover this heinous crime. If you believe you are a victim of sex trafficking or may have information about a particular trafficking situation, please contact the FBI.”
Hisle faces a mandatory minimum sentence of 15 years in prison. Senior District Court Judge John G. Heyburn II set sentencing for Feb. 9, 2015. As part of his plea agreement, Hisle will pay restitution to 12 women identified as victims of Hisle’s human trafficking crimes.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Amanda E. Gregory of the U.S. Attorney’s Office for the Western District of Kentucky and Trial Attorney William Nolan of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Chinese National Sentenced to Forty-One Months for Scheme to Aid Undocumented Aliens in Obtaining Drivers’ LicensesRead the Press Release
ALBUQUERQUE – Hai Gan, 57, a legal, permanent resident from China who resides in The Colony, Texas, was sentenced yesterday afternoon in federal court in Las Cruces, NM, for his conviction on fraud, immigration and witness-tampering charges. The sentence was announced by U.S. Attorney Damon P. Martinez, Acting Special Agent in Charge Tom Hernandez of Homeland Security Investigations (HSI) in El Paso, Texas, and Acting Chief Patrol Agent Benjamin C. Huffman, El Paso Sector of the U.S. Border Patrol.
Hai Gan was sentenced to 41 months in federal prison; he will be deported after he completes his prison sentence. Hai Gan was also ordered to forfeit to the United States his interests in four houses used by Gan to facilitate his criminal activity and approximately $27,000.00, which represent part of his criminal proceeds.
Hai Gan was arrested on May 11, 2011, at a U.S. Border Patrol checkpoint on Interstate 25 north of Doña Ana County, N.M., when Border Patrol Agents learned that he was transporting an illegal alien. Hai Gan subsequently was indicted and charged with 51 counts of fraud in connection with identification documents, eight counts of transporting illegal aliens, three counts of money laundering and two counts of witness-tampering. The indictment also sought forfeiture of four residences owned by Hai Gan, including two in Albuquerque, N.M., and one in Moriarty, N.M.
On Feb. 11, 2014, Hai Gan was convicted on all 64 counts of the indictment by a federal jury after a six-day trial. The evidence at trial established that from Aug. 2009 to May 2011, Hai Gan engaged in a scheme to aid undocumented aliens who were not New Mexico residents in obtaining New Mexico drivers’ licenses by assisting the aliens in fabricating fraudulent documents purportedly establishing New Mexico residency; arranging for the aliens to travel to New Mexico; and assisting the aliens in securing New Mexico drivers’ licenses by fraudulently attesting that they were New Mexico residents. The evidence also established that Hai Gan advertised his services in Chinese–language newspapers, and charged each alien upwards of $3000 for his services. Hai Gan would first work with the alien to develop false residency documents using one of the residences he owned in New Mexico as the alien’s address. After sufficient fraudulent residency documentation was developed, Hai Gan typically would meet the alien at the Albuquerque airport and assist the alien in obtaining a temporary New Mexico driver’s license. When the alien’s permanent driver’s license was delivered to the address identified as the alien’s residence, Hai Gun would then mail the driver’s license to the alien’s true home.
The evidence also established that Hai Gan transported undocumented aliens in Bernalillo and Torrance Counties on eight occasions between Dec. 2009 and May 2011. An undocumented alien testified that in Nov. or Dec. 2012, Hai Gan attempted to dissuade him from testifying against him by suggesting that he would be arrested if he did not relocate. The wife of another alien testified that Hai Gan called her and requested that her husband relocate or deny knowledge of Hai Gan’s criminal activities.
This case was investigated by Homeland Security Investigations, the U.S. Border Patrol, the Department of Homeland Security-Office of Inspector General, and HSI El Paso’s Financial Operations and Currency Unified Strike Force (FOCUS), which includes DEA, Texas Department of Public Safety, IRS Criminal Investigation and U.S. Secret Service, and the Tax Fraud Investigations Division of the New Mexico Taxation and Revenue Department. The case was prosecuted by Assistant U.S. Attorney Randy M. Castellano and Special Assistant U.S. Attorney Michael S. Pleters of U.S. Immigration and Customs Enforcement.
Chief Engineer of Car-Carrier Vessel Pleads Guilty to Obstruction of Justice in Marine Oil Pollution CaseRead the Press Release
The chief engineer of the cargo vessel M/V Selene Leader pleaded guilty today in federal court in Baltimore, Maryland, to obstruction of justice and violating the Act to Prevent Pollution from Ships (APPS), announced Acting Assistant Attorney General Sam Hirsch and U.S. Attorney Rod J. Rosenstein of the District of Maryland.
Noly Torato Vidad was the chief engineer of the vessel, which was operated by Hachiuma Steamship Co LTD, a Japanese company, between August 2013 and the end of January 2014. The M/V Selene Leader According to the plea agreement, in January 2014, engine room crew members of the M/V Selene Leader under the supervision of the defendant transferred oily wastes between oil tanks on board the ship using rubber hoses and then illegally bypassed pollution control equipment and discharged the oily wastes overboard into the ocean. Before such waste can be discharged into the sea, the law requires that it must first pass through an oil water separator, and the operation must be recorded in the vessel’s oil record book for inspection by the United States Coast Guard.
When the Coast Guard boarded the vessel in Baltimore on Jan. 31, 2014, Mr. Vidad tried to obstruct the Coast Guard’s investigation and hide the illegal discharges of oil by falsifying the oil record book, destroying documents, lying to Coast Guard investigators and instructing subordinate crew members to lie to the Coast Guard.
Sentencing in this case is scheduled for Feb. 20, 2015.
This case was investigated by the U.S. Coast Guard Investigative Service and is being prosecuted by Assistant United States Attorney P. Michael Cunningham of the District of Maryland and Senior Trial Attorney David P. Kehoe of the Justice Department’s Environmental Crimes Section.
California Man Pleads Guilty to Multi-Million Dollar Fraud ScamRead the Press Release
BOSTON – A California man pleaded guilty today defrauding borrowers who sought loans from Quest Capital Finance.
Damien John Hess, 36, of Laguna Niguel, Calif., pleaded guilty to conspiracy to commit wire fraud and seven counts of wire fraud. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for Feb. 27, 2015 at 2:00 p.m.
Hess, who was the Chief Executive Officer of Quest Capital Finance, stole millions of dollars in deposits from people and companies who sought to borrow money from Quest. Hess, and others working for him, falsely represented that Quest was a financing company that could provide hundreds of millions of dollars of loans for businesses.
From 2008 through 2011, Hess and others at Quest persuaded businesses and individuals to put hundreds of thousands of dollars into escrow accounts, that is, into an account where the funds would be held by a third party until all contingencies for the loan were resolved, as deposits towards future loans. Hess and others at Quest promised the borrowers that the deposits would not be moved out of escrow unless and until the loan was being funded. In fact, shortly after the prospective borrower had deposited the money in escrow, Hess took all or most of the escrowed money and transferred it to his company, and, in some instances, transferred it to his personal accounts. Hess repeatedly took the escrowed funds without actually arranging financing for the borrowers, let alone making the first draws of financing available to the borrowers. In order to prevent prospective buyers from detecting the fraud, Hess, and others acting on behalf of Quest, continued to promise the prospective borrowers that Quest would soon be providing millions of dollars of financing. Quest did not provide financing nor did it refund the purportedly escrowed or refundable deposits.
The charging statutes provide sentences of no greater than five years in prison for the conspiracy count and 20 years in prison for each for the wire fraud counts, three years of supervised release, and a $250,000 fine or twice the gross loss or gain, whichever is greater, restitution and forfeiture. 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; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement. The case is being prosecuted by Assistant United States Attorneys Sara Miron Bloom of Ortiz’s Economic Crimes Unit, Patrick Callahan of the Civil Division and Doreen Rachal of the Asset Forfeiture Unit.
Burlington County, N.J. Man Pleads Guilty to Robbing Nine Banks in Five MonthsRead the Press Release
CAMDEN, N.J. - An Edgewater Park, New Jersey, man today admitted to a nine-bank South Jersey robbery spree from September 2013 through January 2014, U.S. Attorney Paul J. Fishman announced.
Shalir Hall, 21, pleaded guilty before Chief U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him with nine counts of bank robbery.
Hall allegedly robbed the following New Jersey banks on the dates set forth below:
Beneficial Savings Bank
Willingboro
Sept. 27, 2013
Willingboro
Nov. 14, 2013
Beneficial Savings Bank
Willingboro
Nov. 26, 2013
PNC Bank
Mount Laurel
Nov. 29, 2013
3rd National Bank
Delran
Dec. 12, 2013
Roma Bank
Delran
Dec. 12, 2013
Columbia Savings Bank
Maple Shade
Dec. 17, 2013
TD Bank
Bellmawr
Jan. 8, 2014
PNC Bank
East Windsor
Jan. 8, 2014
According to documents filed in this case and statements made in court:
Hall robbed the Beneficial Savings Bank in Willingboro on Sept. 27, 2013, by threatening and intimidating bank employees, demanding money and then fleeing the bank. Hall joined forces with another individual, and the two went on to commit seven additional robberies in New Jersey – taking turns alternating between going into the banks and staying in the getaway vehicle. Hall committed the Dec.17, 2013 robbery of Columbia Savings Bank on his own. Hall was arrested in Newark on Jan.15, 2014, and has been detained on charges filed by the Burlington County Prosecutor’s Office since his arrest.
The charges to which Hall pleaded guilty each carry a maximum potential penalty of 20 years in prison and a $250,000 fine. Hall’s plea agreement also requires him to make full restitution to each of the banks. Sentencing is scheduled for Feb. 27, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agents In Charge Aaron T. Ford and Edward J. Hanko in Newark and Philadelphia, respectively. He also credited the Camden County Prosecutor’s Office and the Burlington County Prosecutor's Office; the Burlington County Sheriff’s Department Warrant Unit; and the U.S. Marshals Service New York/New Jersey Regional Fugitive Task Force; as well as the East Windsor Township Police Department, Willingboro Police Department, Maple Shade Police Department, Delran Township Police Department, Mount Laurel Police Department, Philadelphia Police Department and the Hazelton, Pennsylvania Police Department for their work leading to today's guilty plea.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney's Office Criminal Division in Camden.
14-400
Defense counsel: Gina A. Capuano, Esquire, Cherry Hill, N.J.
Hall, Shalir Information
Benjamin Suarez Sentenced to more than a Year in PrisonRead the Press Release
Benjamin Suarez was sentenced to 15 months in prison for obstruction of justice, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Suarez, 73, of Canton, was convicted in June of one count of obstruction of justice following a jury trial. Suarez was acquitted on seven counts related to campaign finance laws.
"The judge was correct that this defendant's criminal conduct struck at critical part of our democracy, our justice system," Dettelbach said "This sentence sends a simple message: no one is above the law."
"Benjamin Suarez has been held accountable for impeding the pursuit of justice," Anthony said. "It is imperative that law enforcement be able to fulfill their sworn duties when investigating any possible violation of the law."
Judge Patricia A. Gaughan also sentenced Suarez to two years of supervised release and fined him $15,000.
This case is the result of an investigation by the FBI-Canton Resident Agency. It is being prosecuted by Assistant United States Attorneys Carole S. Rendon, Rebecca Lutzko and Matthew Cronin.
Barker Man Sentenced on Drug ChargeRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Richard Dwyer, 29, of Barker, NY, who was convicted of conspiracy to import alpha-PVP, a synthetic narcotic, was sentenced to 33 months in prison by U.S. District Judge Richard J. Arcara.
According to Assistant U.S Attorney Mary Catherine Baumgarten, who handled the case, the defendant, along with his wife Erin Dwyer and David Jackson, conspired to import the synthetic narcotics from China using the Internet. The packages were then delivered to the defendant via the United States Postal Service.
Erin Dwyer and David Jackson have also been convicted and are awaiting sentencing.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, and the United States Postal Inspection Service, under the direction of Special Agent in Charge Shelly Binkowski,Attorney Sentenced to Five Years in Prison for Defrauding Investors of more than $17 Million and for Obstructing Grand Jury ProceedingsRead the Press Release
Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Gregory E. Grantham, age 57, of Oceanside, California, today to five years in prison, followed by three years of supervised release, for a wire fraud conspiracy, wire fraud and obstruction of justice. Judge Motz also ordered Grantham to forfeit/ pay restitution of $17.4 million.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
Grantham is a licensed attorney and between September 2009 and September 2011, was employed as General Counsel for IAGU Underwriters, LLC, as well as maintaining a private law practice. Graham’s co-defendant, Mervyn Phelan operated IAGU, which was in the business of underwriting loan applications submitted by real estate developers and then locating project financing from banks and other financial entities.
According to his plea agreement and court documents, between mid-2010 and August 2011, Grantham and Phelan became involved in a fraudulent scheme carried out by Patrick Belzner and Brian McCloskey, who both resided in Baltimore County. McCloskey owned a real estate development business known as the McCloskey Group, LLC. Belzner, a home builder, began working with McCloskey in late 2008 or early 2009. Phelan and IAGU began working with the McCloskey Group trying to locate sources of financing for its projects in about 2009.
Beginning in 2009 and continuing through June 2011, Belzner and McCloskey persuaded a series of private lenders to fund loans to establish that the McCloskey Group had reserves of cash that would supposedly help it obtain loans it was seeking in connection with real estate development projects through IAGU. Belzner and McCloskey falsely represented that the funds would be maintained in an escrow account under the control of Kevin Sniffen, a licensed attorney and escrow agent in Baltimore County; that the funds would not be used for any other purpose; and that the money would be returned to the lender, either upon the funding of the loan or after a specified period of time. In return for this temporary use of the lender’s funds, Belzner and McCloskey promised to pay substantial fees or interest. In fact, once the lenders transferred their funds into the escrow accounts, Belzner directed McCloskey to remove those funds from the escrow accounts without the knowledge or permission of the lenders. Belzner and McCloskey then used the majority of the stolen funds to pay for their personal and business expenses. The total losses resulting from the scheme were approximately $20 million.
Beginning in about the late summer of 2010, Grantham and Phelan co-operated with Belzner and McCloskey in their scheme to defraud by (1) making false representations to help persuade private lenders and investment partnerships to loan sums of money to the McCloskey Group for the purposes of meeting “liquidity” requirements imposed by IAGU or various prospective lenders and to place these funds in an escrow account controlled by Kevin Sniffen; and by (2) making false representations to dissuade previous escrow account lenders from demanding the return of their funds when the original time period established for the loan expired without the McCloskey Group obtaining financing for the project in question. In particular, Phelan and Grantham repeatedly advised various escrow account lenders that funding on a particular project was imminent when they knew this was not the case, and in one case represented that they were holding millions of dollars in escrow funds tendered by one group of lenders when this was not true.
At today’s sentencing the Court determined that Grantham was responsible for $17.4 million in losses as a result of the scheme.
Grantham and Phelan also obstructed grand jury proceedings from September to December, 2012, while a grand jury in Maryland was continuing the investigation of the fraud scheme. On September 26, 2012, FBI agents served Grantham and Phelan with grand jury subpoenas which called for the production of documents relating to the scheme. By this time, Belzner had already been indicted for conspiracy to commit wire fraud and this fact was publicly known. Grantham and Phelan agreed that they would not produce certain records in their possession, because those records would reveal their cooperation with and assistance to Belzner and McCloskey in providing false information to the escrow account lenders and their counsel. The records that Phelan and Grantham were willing to produce were provided to the FBI on November 19, 2012; incriminating records were not produced or were deleted from their computers and compact discs.
Patrick J. Belzner, a/k/a “Patrick McCloskey,” age 45, of Selbyville, Delaware, was sentenced to 15 years in prison for wire fraud conspiracy, wire fraud and tax evasion, and was ordered to $19.805 million in restitution. Brian McCloskey, age 42, of Baltimore and Kevin Sniffen, age 53, of Phoenix, Maryland have each pleaded guilty to their roles in the conspiracy and are scheduled to be sentenced on December 12, 2014, and December 19, 2014, respectively. Mervyn A. Phelan, Sr., age 74, of Newport Beach, California, has pleaded guilty and is scheduled to be sentenced on December 5, 2014.
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 and IRS – Criminal Investigation Division for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Jefferson M. Gray and Kathleen O. Gavin, who are prosecuting the case.