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7 January 2015
Bloomfield Man Sentenced to 4 Years in Federal Prison for Role in Three Armed Bank RobberiesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL MORRIS, 60, of Bloomfield, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 48 months of imprisonment, followed by three years of supervised release, for committing violent bank robberies in Southbury, Cromwell and Wallingford.
According to court documents and statements made in court, MORRIS, Leroy McCoy and Keith Sutherland conspired to commit the armed robberies of the Naugatuck Savings Bank in Southbury on April 20, 2011, the Webster Bank in Cromwell on October 7, 2011, and the Connex Credit Union in Wallingford on April 19, 2012.
Prior to each robbery, Sutherland, with the knowledge of MORRIS and McCoy, stole a minivan in the New Haven area. Upon arriving at each victim bank, MORRIS, McCoy and two other individuals, wearing masks and armed with handguns, burst into the bank and ordered employees and customers to the ground. They then forced a bank employee to open the vault, stuffed money taken from the vault and teller drawers into duffle bags, exited the bank fled in the stolen vehicle.
A total of approximately $230,000 was taken during the three robberies.
MORRIS has been detained since his arrest on October 4, 2013. On September 24, 2014, he pleaded guilty to one count of conspiracy to commit armed bank robbery.
McCoy and Sutherland also pleaded guilty. On December 10, 2014, McCoy was sentenced to 54 months of imprisonment. Sutherland awaits sentencing.
This ongoing investigation is being conducted by the FBI, the Connecticut State Police, and the Cromwell, Wallingford, Fairfield and Orange Police Departments. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
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(203) 821-3722 [email protected]Bloods Gang Leader Sentenced in Howard County Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Ryan Gladden, a/k/a "Fats," age 27, today to 92 months in prison followed by three years of supervised release for conspiring to participate in a racketeering conspiracy, in connection with the Bloods gang operating primarily out of Howard County, Maryland.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Howard County Police Chief Gary L. Gardner; Baltimore Police Commissioner Anthony W. Batts; and Howard County State’s Attorney Dario Broccolino.
The defendant was identified as a member of the Bloods as the result of a long term investigation conducted by ATF and the Howard County Police Department. The Bloods, a national criminal street gang with members operating in and around Howard County, Maryland, committed violent acts within the gang to maintain discipline, and against rival gangs.According to his plea agreement, Gladden was a resident of Wilkes Barre, Pennsylvania who played football on a semi-professional team in Scranton, Pennsylvania. He formerly resided in Baltimore City and Randallstown, Maryland. Gladden has been a member of the Bloods gang since 2006. He became a leader of the “Swann” set, a sub-group of the Bloods, and knew of violent crimes committed, or being planned by gang members, using guns and other dangerous weapons. He was also involved in drug trafficking in Pennsylvania, including marijuana and prescription pain pills.
To date, 19 defendants have pleaded guilty to their roles in the racketeering and drug conspiracies. Michael Dominique Johnson, a/k/a "Ace", age 20, of Columbia, Maryland was sentenced to 205 months in prison, after admitting that he committed at least three armed robberies of individuals in which drugs, cash and/or other items were stolen; assaulted others; and sold crack cocaine, oxycodone and other drugs. Johnson also prostituted females, including a minor.
Kenneth Ragan-Armstrong, a/k/a "Keezy," age 23, of Savage and Laurel, Maryland, was sentenced to 193 months in prison after admitting that he founded “Cut Throat Committee,” or “CTC,” a gang whose members are associated with and/or members of the Bloods gang. Ragan-Armstrong committed at least two armed robberies of individuals in which drugs, cash and/or other items were stolen. During one of the robberies, a home invasion in Laurel, Maryland, he pistol whipped the victim on the head resulting in serious bodily injury. Ragan-Armstrong regularly sold drugs, primarily marijuana. During his two day sentencing hearing, witnesses also testified about Ragan-Armstrong’s participation in a sexual assault that occurred in December 2010 at an apartment in Catonsville, Maryland. The Court credited the evidence of the sexual assault when it imposed Ragan-Armstrong’s sentence.
Anthony Preston, a/k/a “40,” or “Tone,” age 27, of Laurel, Maryland, admitted to directing or participating in at least 4 assaults, including an April 20, 2013 assault of a former gang member with a knife and mace in a convenience store. Preston is seen on the store’s surveillance video hitting the girlfriend of the gang member in her face and attempting to spray her with mace. Bystanders, including a young child, were injured by the mace. Preston was later overheard by law enforcement admitting to the assault and stating that if he’d had his gun, he would have killed the man. Preston also was a leader in drug trafficking, selling drugs, including crack cocaine and oxycodone, as early as 2007. Preston, who was previously convicted of armed robbery and attempted armed robbery, has agreed to be sentenced to 20 years in prison at his sentencing scheduled on February 6, 2015.
Giovanni Wright, a/k/a "G," age 22, of Elkridge, Maryland, admitted that he and a co-defendant robbed a rival gang member at gunpoint. In January 2013, Wright fired a gun at a victim’s residence as he and another co-defendant drove by in a truck. Two bystanders were outside and their car was damaged in the shooting. Wright also sold firearms with and to fellow gang members who were prohibited from possessing the firearms. Wright has agreed to be sentenced to 18 years in prison at his sentencing scheduled for January 16, 2015.
Rouchell Chesson, a/k/a “Black,” age 31, of Washington, D.C., was sentenced on December 12, 2014 to 10 years in prison. , Chesson was a leader in the “Tree Top Piru” or “TTP” set of the Bloods gang who directed and participated in, or had knowledge of, robberies committed by fellow gang members, sold guns, and dealt heroin and prescription pills, to and with fellow gang members.Mr. Rosenstein commended the ATF, Howard County Police Department, Baltimore Police Department and Howard County State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and Sandra Wilkinson, who prosecuted the case.
Bank Supervisor Sentenced to Prison for EmbezzlementRead the Press Release
The U.S. Attorney’s Office for the Middle District of Pennsylvania announced that Shelly Ann Kocher, 42, Lehighton, Pennsylvania was sentenced today by U.S. District Court Judge Richard P. Conaboy to 27 months imprisonment, ordered to pay $444,570.22 in restitution and serve three years supervised release for embezzling approximately $376,924.16 from customers’ accounts while she worked as a customer service supervisor at Jim Thorpe National Bank in Jim Thorpe, Pennsylvania. Kocher was ordered to surrender to the Bureau of Prisons on February 11, 2015 to commence serving her sentence.
According to U.S. Attorney Peter Smith, Kocher was employed by Jim Thorpe National Bank from 1999 until May 2013. Kocher embezzled the funds by making unauthorized withdrawals from customers’ CD and savings accounts between 2002 and 2013. Upon discovery of the activity, the bank reimbursed the victims for their losses.
The case was investigated by the Scranton office of the FBI and was prosecuted by Bruce Brandler, Chief of the Criminal Division.
Atlanta Man Pleads Guilty to Bank Fraud and Identity Theft ChargesRead the Press Release
RICHMOND, Va. – Damion Latoras Foster, 33, of Atlanta, Georgia, pleaded guilty today to charges of Conspiring to Commit Bank Fraud and Aggravated Identity Theft.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Gary Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Douglas F. Mease, Special Agent in Charge of the United States Secret Service’s Richmond Field Office, made the announcement after the plea was accepted by U.S. District Judge John A. Gibney.Foster was indicted by a federal grand jury on October 7, 2014. He faces a maximum penalty of 32 years in prison when he is sentenced on April 21, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-28.
In a statement of facts filed with the plea agreement, Foster admitted that he was part of a group that stole business checks from commercial mailboxes and used them to make counterfeit checks. The group then recruited people from areas where the homeless or unemployed would congregate to cash the counterfeit checks. The check-cashers received a small sum of cash for cashing counterfeit checks made payable to them. The remaining proceeds went to the recruiters. Foster’s fingerprints were found on a laptop computer, stolen checks, and other items shipped from a Richmond FedEx store on February 6, 2014, the date co-defendants Brandon Jermaine Johnson and Devante Carson were arrested. Forensic analysis of the laptop computer revealed digital images of counterfeit checks created using stolen business checks as exemplars. Foster’s fingerprints were also found on counterfeit checks passed in Kansas City, Missouri and Sioux Falls, South Dakota. He was arrested at a hotel in Jacksonville, Florida on September 16, 2014, and found in possession of a computer, scanner, printer, check stock, and business checks apparently stolen from the U.S. Mail.
Five other co-defendants in this case pleaded guilty and have been sentenced to terms of incarceration as follows: Brandon Jermaine Johnson, 96 months, Jeffrey Keith Barnes, II, 7 ½ months; Devante Carson, 33 months; Christopher Eugene Pope, 15 months; and Kevin Lavon Smith, 9 months. Another co-defendant, Rasheeda McConnell, was convicted by a jury and sentenced to serve 60 months.
This case was part of Operation Homeless, a nationwide initiative being conducted by the U.S. Postal Inspection Service and U.S. Attorney’s Offices to aggressively prosecute groups that recruit the homeless and indigent to cash counterfeit checks. It was investigated by the United States Postal Inspection Service, United States Secret Service, Chesterfield County Police Department, and Henrico County Police Department as members of the Metro-Richmond Identity Theft Task Force. Prosecutions for the Task Force are handled by the United States Attorney’s Office and the Office of the Attorney General for the Commonwealth of Virginia. Virginia Assistant Attorney General and Special Assistant U.S. Attorney Charles A. Quagliato and Assistant U.S. Attorney Michael C. Moore are prosecuting the case on behalf of the United States.ANSUN BIOPHARMA to Pay More Than $2 Million for Overbilling the U.S.Read the Press Release
Local Biotech Company Doctored Timesheets on NIH ContractsUnited States Attorney for the Southern District of California Laura E. Duffy announced that a local biopharmaceutical company, Ansun Biopharma, Inc., entered into criminal and civil settlements with the Department of Justice that will require it to make approximately $2 million in payments to the United States. These settlements resolve a criminal and related civil investigation against Ansun for submitting false and fraudulent claims on grants and a contract with the National Institutes of Health (“NIH”).
Ansun Biopharma, Inc., formerly known as NexBio, Inc., is a biotechnology company headquartered in San Diego, California, that, from 2004 through 2011, had received several research grants and a contract from the NIH. Among these were a grant award for “Broad-Spectrum Therapeutics for Influenza,” a grant award for “Development of Fludase as an Anti-Influenza Agent,” and, in September 2006, a $50 million contract to develop a drug to combat influenza (the “Fludase Contract”). Fludase was an experimental antiviral drug for the treatment of influenza.
According to the settlements, Ansun’s former Chief Executive Officer, Mang Yu, directed its then-Vice President of Finance and Administration (who was responsible for the accounting department) Dongmei Wang, to fabricate timesheets for company employees to maximize billing on the NIH grants and the Fludase Contract.
The company admitted that in 2009, it created a time-keeping policy that required employees to accurately record the number of hours devoted to certain projects, including projects covered under the Fludase Contract and other NIH-funded grants. The policy also required employees to accurately record the number of hours attributed to overheard, General &Administrative, and other labor categories. Despite these time-keeping requirements instituted by NexBio, Yu directed accounting personnel to maximize reimbursements from NIH, regardless of the actual number of employee hours spent on the Fludase Contract or the other NIH-funded grants. In particular, Yu directed Wang to bill employee hours to the Fludase Contract, even if the project the employee was working on did not fall within the scope of the Fludase Contract.
The company also acknowledged that Yu informed Wang that NexBio should use the money authorized by the Fludase Contract whenever possible, in case NIH terminated the Fludase Contract before NexBio had used all the allotted funds. In addition, Yu told Wang to extend the funding available on the NIH grants for as long as possible because he needed access to the money from the grants to manage cash flow problems at the company.
To comply with Yu’s orders, Wang corrupted the integrity of the employee time-keeping system by fabricating timesheets for certain employees, altering the number of hours entered on certain timesheets and moving employee hours from one labor category to another, and from non-government projects to either the Fludase Contract or one of the NIH grants. The purpose and effect of these alterations was to obtain money from NIH, even if the work was not covered under the terms of the Fludase Contract or NIH grants.
For this conduct, occurring from the 2004 to 2011, a criminal information was filed today charging Ansun with a violation of Title 18, United States Code, Section 1031, executing a scheme to defraud the United States in a contract valued more than $1 million. As part of its settlement, Ansun has agreed to pay the NIH $1,654,600.00.
Separately, Ansun entered into a settlement agreement with the United States to resolve civil allegations that it violated the False Claims Act by submitting invoices that falsely stated the number and category of hours worked by employees in connection with several research grants and a contract funded by NIH. The fabricated invoices resulted in the submission of false claims from September 1, 2006, through June 30, 2011. Ansun agreed to settle the civil matter with a payment of $495,000 to the United States. The False Claims Act is the government’s primary civil remedy to redress false claims for government funds under government contracts and research grants.
Wang was previously charged and pled guilty to executing a scheme to defraud the United States in a contract valued more than $1 million, in violation of Title 18, United States Code, Section 1031. After Wang complied with the terms of a deferral agreement, that charge was dismissed in December 2014.
Yu was previously charged and pled guilty to interfering with officers of the Department of Health and Human Services, in violation of Title 42, Section 262(c), (e), and (f), and was sentenced to one year of probation in August 2014.
DEFENDANTS Case Number: 15CR0024-DMS ANSUN BIOPHARMA, INC. San Diego, CA Case Number: 14CR2352-AJB MANG YU Age 58 Rancho Santa Fe, CA Case Number: 13CR2056-MMA DONG MEI WANG Age 49 San Diego, CA CHARGESExecuting a Scheme to Defraud the United States, in violation of 18 U.S.C. § 1031.
Maximum Penalties for a corporation: 5 years’ probation, $5,000,000 fine or twice the gross gain or gross loss resulting from the offense, $400 special assessment, restitution.Interference with Officers of United States Department of Health and Human Services, in violation of 42 U.S.C. § 262
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Maximum Penalties: 1 year imprisonment, $100,000 fine, $25 special assessment, 5 years’ probation.Department of Health and Human Services, Office of the Inspector General
Federal Bureau of Investigation72 Year-old Defendant Sentenced to Prison for Fraud Scheme and Attempt to Hack into Bank’s Computer SystemRead the Press Release
TUCSON, Ariz. – On Jan. 5, 2015, U.S. District Court Judge James A. Soto sentenced Howard Dennis Barnes, age 72, to 72 months in federal prison. Barnes had previously pleaded guilty to charges of mail fraud and attempted fraud in connection with computers, both felonies.As part of his scheme, Barnes offered real property that he did not own for sale over the internet using Craigslist. In exchange for payment from an unsuspecting buyer, Barnes would impersonate the real owner of the property, forge a deed purporting to transfer the property to the buyer, and mail the fraudulent deed to the buyer. Barnes also forged a will that purported to transfer one of his victim’s estates to others who were not the valid heirs.
Barnes also attempted to steal confidential financial information from an entity that he believed was a bank. Barnes provided an undercover agent, posing as a bank employee, a thumb drive that contained a secret computer program or a Trojan that Barnes believed would be capable of allowing him to gain unauthorized access to the account holders of the bank’s computer system. Barnes admitted he committed such act so he could unlawfully obtain money from the bank’s customers without their knowledge.
The investigation in this case was conducted by the United States Secret Service, United States Postal Inspection Service, Bureau of Alcohol Tobacco, Firearms, and Explosives, and the Tucson Police Department. The prosecution was handled by the U.S. Attorney’s Office, District of Arizona, Tucson.
CASE NUMBER: CR-13-567-TUC-JAS (DTF)
RELEASE NUMBER: 2015-003_BarnesFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.***Media Advisory***Read the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez and Chancellor Paul B. Roth, M.D., M.S., of the UNM Health Sciences Center will join Bernalillo County Commissioner Maggie Hart Stebbins to announce a new collaborative effort, the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative, that will partner with the Bernalillo County’s Opioid Abuse Accountability Initiative to address New Mexico’s opioid crisis. The announcement will be made during Bernalillo County’s Second Opioid Abuse Accountability Summit on Thursday, Jan. 8, 2015.
WHO: U.S. Attorney Damon P. Martinez for the District of New Mexico Chancellor Paul B. Roth, M.D., M.S., UNM Health Sciences Center Bernalillo County Commissioner Maggie Hart Stebbins
WHAT: Announcement of partnership between HOPE Initiative and Bernalillo County Opioid Abuse Accountability Initiative
WHEN: Thursday, Jan. 8, 2015 from 8:00 a.m. to 5:00 p.m.
Commissioner Hart Stebbins to speak at 8:00 a.m.
U.S. Attorney Martinez and Chancellor Roth to speak at 9:15 a.m.
WHERE: Bernalillo County’s Second Opioid Abuse Accountability Summit
CNM Workforce Training Center
5600 Eagle Rock Ave. NE
Albuquerque, NM
OPEN PRESSNOTE: U.S. Attorney Martinez and Chancellor Roth will be available for interviews after the announcement. Reporters interested in interviewing the U.S. Attorney should contact Alyssa Ferda at (505) 224-1480 or (505) 366-1463. Reporters interested in interviewing Chancellor Roth should contact John Arnold at (505) 690-1680. Press inquiries regarding logistics also should be directed to Ms. Ferda.
6 January 2015
Youngstown Man Charged with Child ExploitationRead the Press Release
Stephen Fleischer, 29, of Youngstown, was charged last week with sexual exploitation of a child, transferring obscenity to a minor and transportation of a minor, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The Indictment charges that on or about April 1, 2014, through on or about May 30, 2014, in the Northern District of Ohio, Eastern Division, and elsewhere, Fleischer attempted to persuade, induce, entice and coerce a minor, that is, a 14-year-old girl to engage in sexually explicit conduct, for the purpose of producing a visual depiction of such conduct, knowing and having reason to know that such visual depiction would be transported, using any means or facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce.
The indictment also charges that on or about April 1, 2014, through on or about May 30, 2014, in the Northern District of Ohio, Eastern Division, and elsewhere, Fleischer used a facility and means of interstate and foreign commerce, that is, a device connected to the Internet, to knowingly transfer obscene matter, that is, a visual depiction of his erect penis, to an individual who he knew had not attained the age of 16 years, that is, a fourteen 14-year-old girl.
The indictment also charges that on three separate occasions from on or about May 1, 2014, through on or about July 26, 2014, in the Northern District of Ohio, Eastern Division, and elsewhere, Fleischer knowingly transported an individual who had not attained the age of 18 years, that is a 14 year-old girl, in interstate commerce from the State of Pennsylvania to the State of Ohio, with the intent that such 14 year-old girl engage in sexual activity for which Fleischer could be charged with a criminal offense.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique 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.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Youngstown office of the Federal Bureau of Investigation and the Austintown Police Department.
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.
Used Motor Vehicle Dealers Indicted for Odometer Tampering and Money LaunderingRead the Press Release
A Queens, New York, man and his Israeli brother were charged in indictments unsealed today in federal courts in Philadelphia and Brooklyn, New York, with offenses related to a long-running odometer tampering and money laundering scheme, the Justice Department and the U.S. Attorney’s Office for the Eastern District of New York announced.
Chaim Gali aka Mike Gali and John Triculy, 40, of Queens Village, New York, and Shmuel Gali aka Sam Gali, 42, of Israel, are charged in a 15-count indictment in the Eastern District of Pennsylvania (EDPA) with conspiracy, securities fraud and false odometer statements. The Galis are also charged in a related two-count indictment in the Eastern District of New York (EDNY) with mail and wire fraud conspiracy, and money laundering conspiracy. If convicted of the charges in the EDPA indictment, the defendants face a statutory maximum of five years in prison on the conspiracy charge; a statutory maximum of 10 years in prison for each securities fraud charge and up to three years in prison for each false odometer statement charge. If convicted of the charges in the EDNY indictment, they face a statutory maximum of 20 years in prison for each of the charges.
“Mileage is one of the most important factors in a consumer’s decision to purchase a used car,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “Misrepresenting the mileage on a used car fraudulently induces a consumer to pay more money for less value, and it hides necessary information that will affect how a consumer maintains and repairs that vehicle.”
The indictments allege that the Galis devised a scheme to defraud buyers of used motor vehicles by misrepresenting the mileage of approximately 690 vehicles they sold beginning as early as 2006 and through at least 2011. The indictments charge that the Galis used fictitious dealer names to purchase high-mileage, used motor vehicles from a national vehicle leasing company. The defendants are charged with conspiring to alter the odometers in these vehicles, which they purchased in Florida, Maryland, Missouri and elsewhere, to reflect false lower mileages. The indictments allege that the Galis then fraudulently altered the motor vehicle titles to reflect the false lower mileages and as a result, the commonwealth of Pennsylvania issued motor vehicle titles reflecting the altered mileages.
The defendants subsequently sold the vehicles at wholesale automobile auctions in Pennsylvania and New Jersey using various dealerships, including Chase Auto Center and Conestoga City Autos. At the auctions, the Galis provided the buyers with Pennsylvania vehicle titles bearing the false lower mileages. The EDPA indictment alleges that in some instances, the title indicated mileage more than 100,000 miles less than the true mileage of the vehicle and as a result, the defendants received inflated sales prices for the vehicles they sold.
The defendants deposited the proceeds of the sales of the rolled-back vehicles into various bank accounts, mainly in Brooklyn. Among other things, the defendants then used this money to purchase additional used vehicles and continue their fraud scheme.
“As alleged, the defendants created an elaborate odometer tampering and money laundering scheme to con would-be buyers into purchasing used cars at inflated prices,” said U.S. Attorney Loretta E. Lynch for the EDNY. “They then used the proceeds of their crimes to continue their fraud against additional unsuspecting consumers. This case demonstrates our commitment to protect consumers from fraud.”
Acting Assistant Attorney General Branda and U.S. Attorney Lynch commended the investigative efforts of the Internal Revenue Service-Criminal Investigation and the U.S. Department of Transportation National Highway Traffic Safety Administration’s (NHTSA) Office of Odometer Fraud Investigation.
Chaim Gali was arrested today in New York. Shmuel Gali is in Israel and the government will seek his extradition.
The case is being prosecuted by Trial Attorney Kathryn Drenning and Senior Litigation Counsel Linda I. Marks of the Civil Division’s Consumer Protection Branch, and Assistant U.S. Attorney Catherine M. Mirabile of the Eastern District of New York.
NHTSA has established a special hotline to handle odometer fraud complaints. Individuals who have information relating to odometer tampering should call (800) 424-9393 or (202) 366-4761.
An update on the status of the case is available on the Consumer Protection Branch’s website. More information on odometer fraud is available on NHTSA’s website, and tips on detecting and avoiding odometer fraud are also available on the NHTSA website.
The charges in the indictments are merely allegations, and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Used Motor Vehicle Dealers Indicted for Odometer Tampering and Money LaunderingRead the Press Release
A Queens, New York, man and his Israeli brother were charged in indictments unsealed today in federal courts in Philadelphia and Brooklyn, New York, with offenses related to a long-running odometer tampering and money laundering scheme, the Justice Department and the U.S. Attorney’s Office for the Eastern District of New York announced.
Chaim Gali aka Mike Gali and John Triculy, 40, of Queens Village, New York, and Shmuel Gali aka Sam Gali, 42, of Israel, are charged in a 15-count indictment in the Eastern District of Pennsylvania (EDPA) with conspiracy, securities fraud and false odometer statements. The Galis are also charged in a related two-count indictment in the Eastern District of New York (EDNY) with mail and wire fraud conspiracy, and money laundering conspiracy. If convicted of the charges in the EDPA indictment, the defendants face a statutory maximum of five years in prison on the conspiracy charge; a statutory maximum of 10 years in prison for each securities fraud charge and up to three years in prison for each false odometer statement charge. If convicted of the charges in the EDNY indictment, they face a statutory maximum of 20 years in prison for each of the charges.
“Mileage is one of the most important factors in a consumer’s decision to purchase a used car,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “Misrepresenting the mileage on a used car fraudulently induces a consumer to pay more money for less value, and it hides necessary information that will affect how a consumer maintains and repairs that vehicle.”
“As alleged, the defendants created an elaborate odometer tampering and money laundering scheme to con would-be buyers into purchasing used cars at inflated prices,” said U.S. Attorney Loretta E. Lynch for the EDNY. “They then used the proceeds of their crimes to continue their fraud against additional unsuspecting consumers. This case demonstrates our commitment to protect consumers from fraud.”
The indictments allege that the Galis devised a scheme to defraud buyers of used motor vehicles by misrepresenting the mileage of approximately 690 vehicles they sold beginning as early as 2006 and through at least 2011. The indictments charge that the Galis used fictitious dealer names to purchase high-mileage, used motor vehicles from a national vehicle leasing company. The defendants are charged with conspiring to alter the odometers in these vehicles, which they purchased in Florida, Maryland, Missouri and elsewhere, to reflect false lower mileages. The indictments allege that the Galis then fraudulently altered the motor vehicle titles to reflect the false lower mileages and as a result, the commonwealth of Pennsylvania issued motor vehicle titles reflecting the altered mileages.
The defendants subsequently sold the vehicles at wholesale automobile auctions in Pennsylvania and New Jersey using various dealerships, including Chase Auto Center and Conestoga City Autos. At the auctions, the Galis provided the buyers with Pennsylvania vehicle titles bearing the false lower mileages. The EDPA indictment alleges that in some instances, the title indicated mileage more than 100,000 miles less than the true mileage of the vehicle and as a result, the defendants received inflated sales prices for the vehicles they sold.
The defendants deposited the proceeds of the sales of the rolled-back vehicles into various bank accounts, mainly in Brooklyn. Among other things, the defendants then used this money to purchase additional used vehicles and continue their fraud scheme.
Acting Assistant Attorney General Branda and U.S. Attorney Lynch commended the investigative efforts of the Internal Revenue Service-Criminal Investigation and the U.S. Department of Transportation National Highway Traffic Safety Administration’s (NHTSA) Office of Odometer Fraud Investigation.
Chaim Gali was arrested today in New York, and his arraignment is scheduled for 2:00 pm this afternoon before U.S. Magistrate Judge Robert M. Levy at the federal courthouse in Brooklyn. Shmuel Gali is in Israel and the government will seek his extradition.
The case is being prosecuted by Trial Attorney Kathryn Drenning and Senior Litigation Counsel Linda I. Marks of the Civil Division’s Consumer Protection Branch, and Assistant U.S. Attorney Catherine M. Mirabile of the Eastern District of New York.
NHTSA has established a special hotline to handle odometer fraud complaints. Individuals who have information relating to odometer tampering should call (800) 424-9393 or (202) 366-4761.
An update on the status of the case is available on the Consumer Protection Branch’s website. More information on odometer fraud is available on NHTSA’s website, and tips on detecting and avoiding odometer fraud are also available on the NHTSA website.
The charges in the indictments are merely allegations, and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
United States Settles False Claims Act Allegations Against ImporterRead the Press Release
SAN FRANCISCO – Green Bag Co., Inc., an importer of reusable shopping bags located in San Francisco has agreed to pay $500,000 to settle allegations that it violated the civil False Claims Act by underpaying customs duties it owed, announced United States Attorney Melinda Haag and Brian J. Humphrey, U.S. Customs and Border Protection Director of Field Operations, San Francisco.
The United States alleges that, from July 2007 through October 2009, Green Bag underpaid customs duties on goods imported into the United States from China. Green Bag allegedly used two sets of invoices for each shipment: one true invoice that Green Bag paid, and a second invoice falsely stating a lower cost. The false invoices were allegedly used to calculate the customs duties that Green Bag paid on the imported goods, resulting in substantial underpayments.
“Companies that import goods into the United States must disclose the true costs of imports and pay all customs duties owed,” said U.S. Attorney Haag. “This office has a responsibility to make sure the system is fair to those companies that play by the rules and we will not hesitate to take action against those who so brazenly cheat. I commend the work of the Department of Homeland Security Office of Inspector General and the U.S. Customs and Border Protection.”
“U.S. Customs and Border Protection has direct responsibility for enhancing U.S. economic competitiveness by enforcing U.S trade laws on foreign manufactured goods entering our country. The men and women of CBP have an essential role in protecting American economic security while fostering legitimate trade and travel. Attempting to avoid Customs Duty brings serious consequences,” said Director of Field Operations Humphrey.
The settlement resolves a whistleblower lawsuit filed in the United States District Court for the Northern District of California. An executive who formerly worked at Green Bag filed the case pursuant to the qui tam provisions of the False Claims Act. Under those provisions, private citizens, known as “relators,” may file lawsuits on behalf of the United States and receive a portion of the proceeds of a settlement or judgment. The relator will receive $100,000 as his share of the government’s recovery.
Assistant U.S. Attorney Sara Winslow handled the matter on behalf of the U.S. Attorney’s Office for the Northern District of California, with assistance from Financial Fraud Investigator Michael Zehr and Legal Assistant Kathy Terry. The matter was investigated by the DHS Office of Inspector General.
U.S. Navy Commander Pleads Guilty in International Bribery ScandalRead the Press Release
Second U.S. Navy Officer Indicted on Related Bribery Charges
A commander in the U.S. Navy pleaded guilty to federal bribery charges today, admitting that he provided a government contractor with classified ship schedules and other internal U.S. Navy information in exchange for cash, travel and entertainment expenses, as well as the services of prostitutes. A second U.S. Navy officer was also indicted today on related bribery charges by a federal grand jury in the Southern District of California.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Laura E. Duffy of the Southern District of California, Director Andrew L. Traver of the Naval Criminal Investigative Service (NCIS) and Deputy Inspector General of Investigations James B. Burch of the Department of Defense, Defense Criminal Investigative Service (DCIS) made the announcement.
“Commander Sanchez sold out his command and country for cash bribes, luxury hotel rooms, and the services of prostitutes,” said Assistant Attorney General Caldwell. “After today’s guilty plea, instead of free stays at the Shangri-La hotel, Sanchez is facing many nights in federal prison. The Department of Justice’s Criminal Division is committed to prosecuting those who abuse positions of public trust for personal enrichment at the expense of national security and the American taxpayers.”
“During the course of the investigation into this criminal enterprise, investigators have compiled voluminous evidence identifying multiple persons of interest, generating numerous leads, and establishing and corroborating connections,” said Director Traver. “NCIS and our law enforcement partners are committed to seeing this massive fraud and bribery investigation through to its conclusion, so that those responsible are held accountable.”
“This outcome yet again sends the message that corruption will be vigorously investigated and prosecuted,” said Deputy Inspector General of Investigations Burch. “This is an unfortunate example of dishonorable Naval officers who recklessly risked the safety of our troops by trading classified information for cash, extravagant gifts and prostitutes. Cases such as these are not motivated by need or other difficult personal circumstances; they are the product of simple greed. This investigation should serve as a warning that those who compromise the integrity of the United States will face their day of reckoning. DCIS and our law enforcement partners will pursue these crimes relentlessly.”
Jose Luis Sanchez, 42, an active duty U.S. Navy Officer stationed in San Diego, California, is one of seven defendants charged – and the fifth to plead guilty – in the corruption probe involving Glenn Defense Marine Asia (GDMA), a defense contractor based in Singapore that serviced U.S. Navy ships and submarines throughout the Pacific. Sanchez pleaded guilty to bribery and bribery conspiracy before U.S. Magistrate Judge David H. Bartick of the Southern District of California. A sentencing hearing was scheduled for March 27, 2015, before U.S. District Judge Janis L. Sammartino.
According to his plea agreement, from April 2008 to April 2013, Sanchez held various logistical positions with the U.S. Navy’s Seventh Fleet in Asia. Sanchez admitted that, beginning in September 2009, he entered into a bribery scheme with Leonard Glenn Francis, the CEO of GDMA, in which Sanchez provided classified U.S. Navy ship schedules and other sensitive U.S. Navy information to Francis and used his position and influence within the U.S. Navy to benefit GDMA. In return, Francis gave him things of value such as cash, travel and entertainment expenses, and the services of prostitutes. Sanchez admitted that this bribery scheme continued until September 2013. Francis was charged in a complaint unsealed on Nov. 6, 2013, with conspiring to commit bribery; that charge remains pending.
In his plea agreement, Sanchez admitted to seven specific instances in which he provided Francis with classified U.S. Navy ship and submarine schedules. He also admitted using his position and influence with the U.S. Navy to benefit GDMA and Francis on various occasions. Further, Sanchez admitted that he tipped Francis off about investigations into GDMA overbillings and briefed Francis on internal U.S. Navy deliberations.
Sanchez further admitted that, in exchange for this information, Francis provided him with cash, entertainment and stays at high-end hotels. For example, in May 2012, Francis paid for Sanchez to stay five nights at the Shangri-La, a luxury hotel in Singapore, and, two months later, Francis paid for Sanchez’s travel from Asia to the United States, at a cost of over $7,500. Additionally, Francis arranged and paid for the services of prostitutes for Sanchez while Sanchez was in Singapore and elsewhere in Asia.
In addition to Sanchez, two other U.S. Navy officials – former NCIS Special Agent John Beliveau and Petty Officer First Class Dan Layug – have pleaded guilty in connection with this investigation.Two former GDMA executives, Alex Wisidagama and Edmond Aruffo, have likewise pleaded guilty.
Also today, an indictment was returned against U.S. Navy Captain-Select Michael Vannak Khem Misiewicz, 47, of San Diego, California, charging him with a bribery conspiracy and seven counts of bribery. According to allegations in the indictment, from at least as early as July 2011 until September 2013, Misiewicz provided classified U.S. Navy ship schedules and other sensitive U.S. Navy information to Francis and used his position and influence within the U.S. Navy to benefit GDMA. In return Francis allegedly gave him things of value such as cash, travel and entertainment expenses, and the services of prostitutes.
The charges contained in a criminal complaint and indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The ongoing investigation is being conducted by NCIS, DCIS and the Defense Contract Audit Agency. The case is being prosecuted by Director of Procurement Fraud Catherine Votaw and Trial Attorney Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mark W. Pletcher and Robert S. Huie of the Southern District of California.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
U.S. Attorney's Office Collects a Third of a Billion Dollars in 2014Read the Press Release
U.S. Attorney Steven M. Dettelbach announced that the Northern District of Ohio collected a record $356.7 million in Fiscal Year 2014 from criminal and civil actions handled exclusively or substantially by the United States Attorney’s Office for the Northern District of Ohio, more than 20 times the office’s annual budget.
The office’s total overall budget for the fiscal year was about $16.6 million.
Additionally, the office took in about $11.4 million in civil and criminal forfeitures.
“The work of this office and our partners not only recovers hundreds of millions of taxpayer dollars – it helps make crime victims whole, it punishes those who lie and cheat to enrich themselves and it hits criminals and scammers where it can hurt the most, right in the wallet,” Dettelbach said. “It is worth noting that the money collected by this office last year was 20 times more than our annual budget.”
Attorney General Eric Holder said: “Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people. Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And it shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
The money collected is used to compensate crime victims, is distributed to state and local law enforcement partners who participate in investigations and is returned to federal agencies for losses sustained by their programs, including the Medicare and Medicaid programs, and to the general treasury. Among the largest collections this year:
U.S. Bank: U.S. Bank paid $200 million to resolve civil allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the Federal Housing Administration (FHA) that did not meet applicable requirements. As part of the settlement, U.S. Bank admitted that, from 2006 through 2011, it repeatedly certified for FHA insurance mortgage loans that did not meet U.S. Department of Housing and Urban Development underwriting requirements. U.S. Bank also admitted that its quality control program did not meet FHA requirements, and as a result, it failed to identify deficiencies in many of the loans it had certified for FHA insurance, failed to self-report many deficient loans to HUD, and failed to take corrective action required under the program. U.S. Bank further acknowledged that its conduct caused FHA to insure thousands of loans that were not eligible for insurance and that the FHA suffered substantial losses when it later paid insurance claims on those loans.
United States v. Diebold Inc.: Diebold Inc., the Ohio-based provider of integrated self-service delivery and security systems, including automated teller machines, paid a $25.2 million criminal penalty to resolve allegations that it violated the Foreign Corrupt Practices Act by bribing government officials in China and Indonesia and falsifying records in Russia in order to obtain and retain contracts to provide ATMs to state-owned and private banks in those countries.
United States, ex. rel. Gale v. Omnicare Inc.: Omnicare Inc., the nation’s largest provider of pharmaceuticals and pharmacy services to nursing homes, paid $124 million for allegedly offering improper financial incentives to skilled nursing facilities in return for their continued selection of Omnicare to supply drugs to elderly Medicare and Medicaid beneficiaries. Approximately $116 million of the settlement resolved allegations in a lawsuit brought under the whistleblower provisions of the False Claims Act that Omnicare submitted false claims by entering into below-cost contracts to supply prescription medication and other pharmaceutical drugs to skilled nursing facilities and their resident patients to induce the facilities to select Omnicare as their pharmacy provider.
Attorney General Holder announced that across the country, the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.The amount is more than three times the $8 billion collected in FY 2013. The largest civil collections were from affirmative civil enforcement cases, many of which were brought under the whistleblower provisions of the False Claims Act, in which the United States recovered government money lost to fraud or other misconduct or collected from individuals and/or corporations for violations of federal health, safety, civil rights, tax, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Department of Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.Below is a complete breakdown of collections in the Northern District of Ohio over the past decade:
2013: $23.9 million
2012: $79.7 million
2011: $48.6 million
2010: $42 million
2009: $17.7 million
2008: $36.7 million
2007: $63.5 million
2006: $80 million
2005: $51.4 million
2004: $22.3 million
Two indicted on child pornography chargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – A federal grand jury indicted two West Virginia residents today on child pornography charges, United States Attorney William J. Ihlenfeld, II, announced.
Terry V. Austin, Sr., 50, of Grafton, West Virginia, was allegedly discovered in possession of multiple images and videos of child pornography during a West Virginia State Police investigation. He is charged with one count of “Receipt and Distribution of Child Pornography,” for which he faces between five and twenty years in prison and a fine of up to $250,000.00. He is further charged with one count of “Possession of Child Pornography,” for which he faces up to ten years in prison and a fine of up to $250,000.00.
Additionally, convicted sex offender Daniel Frohnhofer, 43, of Morgantown, West Virginia, was allegedly discovered in possession of child pornography and a firearm during an investigation by the West Virginia State Police Internet Crimes Against Children Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. He is charged with one count of “Possession of Child Pornography,” for which he faces up to 20 years in prison and a fine of up to $250,000.00. He is further charged with one count of “Felon in Possession of a Firearm,” for which he faces up to ten years in prison and a fine of up to $250,000.00.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Two Fairmont, WV residents convicted for role in manufacturing methamphetamineRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Daniel Carl Ash, 32, and Amanda Isolde Eiseman, 25, both of Fairmont, West Virginia, were convicted in federal court for their role in manufacturing methamphetamine, United States Attorney William J. Ihlenfeld, II, announced today.
An investigation by the Three Rivers Drug Task Force revealed that Eiseman and Ash both repeatedly purchased pseudoephedrine, commonly used in the production of methamphetamine, throughout 2014.
Ash and Eiseman both pled guilty to one count of “Possession of Pseudoephedrine to be used in the Manufacture of Methamphetamine.” They each face up to 20 years in prison and a fine of up to $250,000.00.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Shawn Morgan is prosecuting the cases on behalf of the government.
U.S. Magistrate Judge John S. Kaull presided .Texas Man Indicted on Child Pornography ChargesRead the Press Release
Samuel E. Condo, Jr., 32, of Arlington, Texas, was charged last week with enticement, distributing and transporting visual depictions of minors engaged in sexually explicit conduct, transferring obscenity to a minor and travel with intent to engage in illicit sexual conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about October 20, 2014, through on or about October 24, 2014, in the Northern District of Ohio, Eastern Division, and elsewhere, Condo knowingly used facilities and means of interstate and foreign commerce, that is, a cell phone and a computer connected to the Internet, to attempt to persuade, induce, entice and coerce an individual who had not attained the age of 18 years, that is, a 13-year-old girl to engage in illegal sexual activity with him.
The indictment also charges that on or about October 21, 2014, in the Northern District of Ohio, Eastern Division, and elsewhere, Condo knowingly distributed in interstate and foreign commerce, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct.
The indictment also charges that on or about October 22, 2014, in the Northern District of Ohio, Eastern Division, and elsewhere, Condo used a facility and means of interstate and foreign commerce, that is, a device connected to the Internet, to knowingly transfer obscene matter, that is, a video file containing a visual depiction of himself masturbating, to an individual who he believed had not attained the age of 16 years, that is, a law enforcement officer posing as a 13-year-old girl.
The indictment also charges that on or about October 24, 2014, in the Northern District of Ohio, Eastern Division, and elsewhere, Condo knowingly transported, using any means of interstate and foreign commerce and in and affecting interstate and foreign commerce, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct. The indictment also charges that on or about October 24, 2014, in the Northern District of Ohio, Eastern Division, and elsewhere, Condo knowingly traveled in interstate commerce, from the State of Texas to the State of Ohio, for the purpose of engaging in illicit sexual conduct with another person, that is, a 13-year-old girl.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique 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.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Ohio Internet Crimes Against Children Task Force and the United States Secret Service.
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.
Texans Sentenced for Kidnapping Arkansas ManRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced that two Texans were sentenced on Monday to 150 months in prison for kidnapping an Arkansas man and lying to FBI special agents.
Aldo Cantu, 21, and Anthony Segura, 22, both of Lufkin, Texas, were sentenced by U.S. District Judge Robert G. James for one count of kidnapping and one count of lying to an FBI special agent. They were also sentenced to five years of supervised release.
According to evidence presented at the guilty plea hearings, the victim was taken by the defendants with the intent to drive him to Texas at gunpoint from his home in Pine Bluff, Ark., on November 16, 2014. The defendants drove the victim to a motel room in Pine Bluff. Thereafter, Cantu and Segura placed the victim in a car. The victim escaped and reported his kidnapping when the car stopped at a service station in Lake Providence, La. East Carroll Parish Sheriff’s deputies responded. Cantu and Segura were arrested and two firearms used during the kidnapping were seized. Each defendant was interviewed by FBI special agents and lied by saying they had not traveled to Arkansas that night and did not participate in the kidnapping.
“These defendants put the life of the victim in danger and lied to federal agents about their involvement,” Finley stated. “Taking someone against their will at gunpoint is a crime that is prosecutable and has serious consequences. We will continue to prosecute those who ignore the rights of others and lie to agents who are trying to enforce the law. ”
The FBI conducted this investigation with the assistance from the East Carroll Parish Sheriff’s Office. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case as part of Project Safe Neighborhoods, a nationwide Department of Justice initiative designed to reduce firearm crimes by removing dangerous and persistent felons from the community and promote firearm safety.
Tallhassee Man Charged with using a Minor to Produce Child PornographyRead the Press Release
TALLAHASSEE, FLORIDA – On January 6, 2015, a federal grand jury returned an indictment against Jonathan Harry Lee Williams of Tallahassee, Florida, charging him with using a minor to produce child pornography and possession of child pornography. Williams, a Leon County School District employee, who worked in the office at Ruediger Elementary School, was arrested on December 11, 2014, after agents with the Federal Bureau of Investigation executed a search warrant at his residence. The indictment was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment alleges that between April 1 and December 10, 2014, Williams knowingly used a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction. The indictment also alleges that on or about December 11, 2014, Williams knowingly possessed material that contained images of child pornography.
The indictment results from an investigation by the Federal Bureau of Investigation. The case will be prosecuted by Assistant United States Attorney Jason Beaton.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial in a court of law.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Statesville Man Sentenced to 10-Year Prison Term on Child Pornography ChargesRead the Press Release
STATESVILLE, N.C. – On Monday, January 5, 2014, U.S. District Judge Richard L. Voorhees sentenced Forest Skidmore, Jr., 48, of Statesville, N.C. to 120 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, Skidmore was ordered to register as a sex offender and to serve the rest of his life under court supervision after his release 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 Thomas A. Anderson of the Statesville Police Department.
Skidmore pleaded guilty in July 2014 to one count of possession of child pornography. According to filed documents and statements made in court, from on or about March 2012 to on or about May 2012, law enforcement became aware of Skidmore’s 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 Skidmore’s home and seized his computer. A forensic examination of Skidmore’s computer revealed that he possessed 166 images and 61 videos of children being sexually abused, including images of child pornography victims under the age of five. Court records show that the child pornography in Skidmore’s possession included at least 23 different children already identified by law enforcement as victims of child pornography.
Skidmore has been in custody since entering his guilty plea and will 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 Statesville 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
Statement from Attorney General Holder on the Passing of Former Governor Mario CuomoRead the Press Release
Attorney General Eric Holder released the following statement Tuesday on the passing of former Governor Mario Cuomo. The Attorney General Holder’s travel to New York to attend former Governor Cuomo’s funeral was canceled due to inclement weather.
“With the passing of Mario Cuomo, America has lost a giant and a true statesman – a leader of strength and rare humility; of wit and ceaseless compassion.
“Governor Cuomo was more than a distinguished public servant or a great American success story. Throughout his extraordinary life, he was a tenacious champion for those too often forgotten and too long overlooked. Through his words and his deeds, he gave voice to the voiceless, hope to the hopeless, and strength to all those who felt that they had been left out or left behind. As the son of Italian immigrants – hailing from my own hometown of Queens, New York – he never forgot his roots. He was always in step with the people he served, and with the glorious immigrant tradition that has always made America so great. His life’s work was inflected with sincere concern for all of his fellow citizens – no matter what they looked like or where they happened to be from. And in his own distinctive voice, he consistently challenged us not only to reach for great and untouched heights, but to extend a hand to those unable to make the journey alone.
“For decades, I have admired Governor Cuomo’s unwavering dedication to building an America that’s more fair, more free, and more equitable. I last spoke with him a few months ago, and will always be grateful for the advice and support he offered throughout my career. With his loss, a great progressive flame has gone out. But in the hearts of millions of Americans who heard his message, who knew his story, and who benefited from his passionate service, the fire that he ignited burns on.”
Skin care business charged with selling misbranded, unauthorized medical productsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – A federal grand jury returned an indictment today charging a Jefferson County, West Virginia business, its owner, and its president with distributing medical products without the approval of the U.S. Food and Drug Administration, United States Attorney William J. Ihlenfeld, II, announced.
David B. Phillips, 58, of Charles Town, West Virginia, owns and operates Phillips Technologies and Rebuilder Medical Technologies, Inc. in Jefferson County, West Virginia. Bryan Sheldon, 56, also of Charles Town, West Virginia, is the president of Rebuilder Medical Technologies, Inc.
An FDA investigation revealed that Phillips, Sheldon, and their corporate entities were manufacturing and distributing SilverCure Ointment, a product containing colloidal silver for use in treating molluscum, psoriasis and other skin conditions. The FDA has not approved drugs containing colloidal silver due to concerns over its lack of effectiveness and the risk of side effects. Such side effects include argyriais, a condition resulting in blue or gray discoloration of the skin resulting from an accumulation of silver or silver sulfide particles in the skin due to the prolonged intake of silver products.
Phillips represented to the FDA that his businesses would discontinue the production and sale of products containing colloidal silver. However, Phillips and his business continued to sell misbranded and unauthorized products containing silver.
Phillips, Sheldon, and Rebuilder Medical Technologies, Inc. are each charged with:• One count of “Conspiracy to Violate the Laws,” for which they each face five years in prison and a fine of up to $250,000.00.
• Four counts of “Introduction into Interstate Commerce of New Drug without Approval.” They each face up to three years in prison and a fine of up to $500,000.00 (corporation) or $250,000.00 (individuals) on each count.
• Four counts of “Mislabeling/Misbranding a Drug.” They each face up to three years in prison and a fine of up to $500,000.00 (corporation) or $250,000.00 (individuals) on each count.Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Sabine Parish Man, Lincoln Parish Man Sentenced for Distributing MethamphetamineRead the Press Release
United States Attorney Stephanie A. Finley announced that a Sabine Parish man and a Lincoln Parish man were sentenced Monday for one count of distribution of methamphetamine.
MANY RESIDENT SENTENCED TO 173 MONTHS IN PRISON
SHREVEPORT, La. – Jamal Holland, 28, of Many, La., was sentenced to 173 months by U.S. District Court Judge S. Maurice Hicks Jr. Holland was also sentenced to three years of supervised release. According to evidence presented at the September 9, 2014 guilty plea, law enforcement conducted controlled purchases of methamphetamine from Holland on September 18, 2013 and October 3, 2013. For both occasions, Holland was recorded selling a total of 39 grams of methamphetamine.
The DEA and the Sabine Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
CHOUDRANT MAN SENTENCED TO 10 YEARS IN PRISON
MONROE, La. – Christopher Takewell, 38, of Choudrant, La., was sentenced to 120 months by U.S. District Judge Robert G. James. Takewell was also sentenced to five years of supervised release. According to evidence presented at the September 25, 2014 guilty plea, law enforcement agents conducted a controlled purchase of 104.65 grams of pure methamphetamine in January of 2014 from Takewell at his home. The residence was searched on January 24, 2014, and the $6,250 used in the controlled purchase was recovered.
The DEA-Monroe Field Office, the Lincoln Parish Narcotics Enforcement Team and the Metro Narcotics Unit based in Monroe conducted this investigation. Assistant U.S. Attorney Allison D. Bushnell prosecuted the case.
“Methamphetamine is a powerful, highly addictive drug that threatens our communities,” Finley stated. “These sentences show our resolve to fight this illegal and dangerous drug activity.”
Roff Woman Sentenced to 36 Months Probation, $12,999 Restitution for Theft of Government FundsRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that MARY LOUISE FARRIS, a/k/a Mary Louise Allen, age 42, of Roff, Oklahoma, was sentenced to 3 years of probation and restitution of $12,999.00 for Theft Of Government Funds, in violation of Title 18, United States Code, Section 641.
The charges arose from an investigation by the Social Security Administration, Office of Inspector General.
The Information alleged that from on or about February 22, 2012 to on or about December 18, 2012, in the Eastern District of Oklahoma, the Defendant did willfully and knowingly embezzle, steal and convert to her own use, money and things of value from the Social Security Administration, an agency of the United States, which had been paid to Mary Lou Allen, as widow benefits, to which the defendant knew she was not entitled and having a value in excess of $1,000.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Chris Wilson represented the United States.
Ringleader Sentenced to More Than 20 Years in Prison Lawyer for His Role in Series of Robberies and Attacks in 2012Defendant Armed Himself with Baseball Bat to Accost Two Victims on Same Night; Five Others Convicted of Violent Offenses in OverallRead the Press Release
WASHINGTON – Leon Boyd, 39, the ringleader of a group of six men responsible for a series of armed robberies in 2012, was sentenced today to 20 years and 180 days in prison for robbing a man and attempting to rob a woman in separate incidents on the same night, both while he was armed with a baseball bat, U.S. Attorney Ronald C. Machen Jr. announced.
The attacks took place within just 20 minutes on the night of Aug. 12, 2012. In one attack, Boyd beat and robbed a man who was walking down a street, and in the other, he beat and attempted to rob a woman who was riding a bicycle.
Boyd, of Washington, D.C., was found guilty by a jury in June 2014, following a trial in the Superior Court of the District of Columbia, of armed robbery, assault with intent to rob while armed, and related offenses. He was sentenced by the Honorable Robert I. Richter. The prison time will run consecutively to a 10-year term that Boyd is now serving following his conviction on a related federal charge involving his unlawful possession of ammunition.
This sentencing was the culmination of a two-year investigation by the Metropolitan Police Department (MPD) and U.S. Attorney’s Office of a group of men who committed a series of violent armed robberies over the course of two weekends in August 2012. A total of six men were convicted of robbery and related offenses in the Superior Court of the District of Columbia and the U.S. District Court for the District of Columbia.
“Leon Boyd led a group of young men who viciously beat and robbed vulnerable victims, showing no regard for the injuries they were causing,” said U.S. Attorney Machen. “This sentence of 20 ½ years, on top of another 10-year prison term that Leon Boyd is now serving, will keep this dangerous man off our streets for decades.”
Boyd was found guilty of charges stemming from the first two attacks.
According to the government’s evidence, on Sunday, Aug. 12, 2012, at approximately 11:30 p.m., a 23-year-old man was returning home from a weekend away. As the man walked in the 100 block of 14th Street SE, carrying and wheeling his luggage, Boyd approached him. Armed with a baseball bat, Boyd beat and robbed the victim. A second man, Jon Charles Flowers, joined in the assault. They stole some luggage, cash, and a watch. The two men then fled in a getaway car driven by a third man, Tommy Branch. The victim suffered head injuries.
Boyd, Flowers, and Branch then drove to the vicinity of Cardozo High School in Northwest Washington, where they came upon a second victim at about 11:50 p.m. They spotted a 24-year-old woman who was riding her bicycle in the 100 block of 11th Street NW. Branch parked the car, and the three men got out. Flowers pushed the woman off the bicycle, and Boyd struck her twice in the face with a baseball bat, breaking her nose and eyeglasses. Branch joined in the attack. One of the assailants tried to steal the woman’s backpack, but she fought back ferociously while screaming. Flowers fled on foot and Boyd and Branch fled by car.
Flowers, 27, of Washington, D.C., and Branch, 23, of Fort Washington, Md., pled guilty to charges stemming from the Aug. 12, 2012 attacks. Flowers was sentenced to five years in prison, and Branch was sentenced to a 3 ½-year prison term for these crimes.
A similar set of crimes took place the following weekend.
According to the government’s evidence, shortly after midnight, early in the morning of Aug. 18, 2012, Branch and two other accomplices – Sunny B. Kuti and Michael Moore – saw the victim, Thomas “T.C.” Maslin. Mr. Maslin was walking home and at the edge of a park near Independence and North Carolina Avenues SE. During the ensuing robbery, Mr. Maslin raised his hands and said that all he had was a phone and bank card. As the robbery continued, Kuti struck Mr. Maslin in the side of the head, temporarily stunning him. Moore pushed Mr. Maslin, and Branch struck him in the side of the head with a baseball bat.
Branch and his accomplices took Mr. Maslin’s iPhone, bank card, and keys. They then drove to a gas station in the 1200 block of Pennsylvania Avenue SE, a few blocks away from the robbery scene. Branch tried to use Mr. Maslin’s bank card to buy gasoline, but the card was refused because he did not know the cardholder’s zip code.
Following this attack, Branch, Kuti, and Moore drove to the Barry Farm area of Southeast Washington, where they met a fourth man, Darrin L. Beal. They then set off for the Adams Morgan area of Northwest Washington to commit a second robbery.
At about 3:20 a.m., while Beal remained in the car, Branch, Moore, and Kuti, while armed with a non-functioning BB gun that resembled a real handgun, targeted three victims in an alley off of the 1800 block of 18th Street NW, violently assaulting one victim and taking a cellphone, wallet, and set of keys from another. All three men were captured by MPD officers responding to the report of the robbery.
Mr. Maslin was found, unconscious, by police at about 8:15 a.m. on Aug. 18, 2012, on the front porch of a rowhouse in the 700 block of North Carolina Avenue SE. He had a massive fracture to his skull and bleeding throughout the brain cavity due to the blow from the bat.
As the investigation of the robbery of Mr. Maslin progressed, law enforcement identified Branch, Moore, and Kuti as the three men who committed that attack. Also as a result of the investigation of the assault and robbery of Mr. Maslin, investigators identified Branch, Boyd, and Flowers as the three men who participated in the crimes that took place Aug. 12, 2012.
Branch and Kuti subsequently were found guilty at trial of charges stemming from the attacks on Mr. Maslin and the other victims on Aug. 18, 2012. Branch, was sentenced to 24 ½ years in prison; this sentence runs consecutively to the prison term of 3½ years that he received for the other attacks. Kuti, 19, of Washington, D.C., was sentenced to 10 years in prison.
Moore, 20, of Landover, Md., pled guilty to charges for his role in the crimes of Aug. 18, 2012, and was sentenced to a 4 ½-year prison term.
Beal, 27, of Washington, D.C., pled guilty to conspiracy to commit a crime of violence for his role in the Aug. 18, 2012 crimes. He was sentenced to a 40-month prison term.
In announcing today’s sentence, U.S. Attorney Machen praised the efforts of the patrol officers, crime scene technicians, and detectives of the Metropolitan Police Department, who investigated the case. He also commended the assistance of the Court Services and Offenders Supervision Agency and the Cellular Analysis Survey Team of the FBI.
U.S. Attorney Machen also recognized the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Jennifer Clark; Victim/Witness Security Specialists Michael Hailey, Debra Cannon, and David Foster; Victim/Witness Services Coordinator La June Thames; Paralegal Specialists Jeanette Litz and Tameka Garcia; Litigation Technology Specialist Kimberly Smith; and Criminal Investigators Christopher Brophy, Durand Odom, and Derek Starliper. He also acknowledged the work of Assistant U.S. Attorneys Vincent Caputy and Darlene Soltys, who assisted with the investigation and prosecution of Boyd on federal charges; Assistant U.S. Attorneys Suzanne Curt, Katherine Kelly, Patricia Riley, and Peter Taylor, who provided legal research assistance, and Assistant U.S. Attorneys Jocelyn Ballantine and Clare Pozos, who assisted with the Branch and Kuti trials in Superior Court.
Finally, he expressed appreciation for the work of Assistant U.S. Attorney Thomas P. Swanton, who has investigated and prosecuted these cases for more than two years.
15-004Repeat Identity Thief Pleads Guilty to Mail Theft, Access Device Fraud and Aggravated Identity TheftRead the Press Release
A repeat offender with prior convictions for forgery and identity theft pleaded guilty today in U.S. District Court in Seattle, announced Acting U.S. Attorney Annette L. Hayes. BOBBIE DENISE CATTON, 50, pleaded guilty to two counts of possession of stolen mail, one count of access device fraud and one count of aggravated identity theft. When sentenced by U.S. District Judge James L. Robart, CATTON faces a mandatory minimum two years in prison for the aggravated identity theft that will run consecutive to any other prison time imposed on the other charges.
According to records filed in the case, between March of 2013 and January of 2014 CATTON and her cohorts stole large volumes of mail throughout King County from homes and apartment complexes. They used stolen checks, credit and debit card information and identifying documents to commit various types of fraud. When arrested by a King County Sheriff’s Deputy following a traffic stop, CATTON had dozens of credit/debit cards and bank statements in others’ names in her possession, along with financial and identifying information for hundreds of others.
CATTON was previously prosecuted federally in 2002 for identity fraud and was sentenced to 33 months in prison. She has multiple state convictions for, among other things, forgery and possession of stolen property.
The case was investigated by the King County Sheriff’s Office and the U.S. Postal Inspection Service (USPIS). The case is being prosecuted by Assistant United States Attorney Matthew Hampton.
Quitman Man Sentenced to 210 Months in Prison for Producing Child PornographyRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced that a Quitman man was sentenced Monday to 210 months in prison for producing child pornography.
Christopher Nixon, 22, of Quitman, La., was sentenced by U.S. District Judge Robert G. James for one count of production of child pornography. He was also sentenced to serve 15 years of supervised release and is required to register as a sex offender. According to evidence presented at the September 5, 2014 guilty plea, between February 1, 2012 and March 30, 2012, Nixon produced child pornography using a male under the age of 18. Canadian law enforcement discovered the videos during an unrelated investigation in May of 2013. The videos depicted sex acts between Nixon and an underage male.
“This office will vigorously prosecute those who create, distribute and possess child pornography,” Finley stated. “Sexual abuse, including child pornography, is a growing problem and has devastating consequences for the victimized children. These children suffer additional physical and mental abuse as these images continue to circulate worldwide across the internet for many years, long after they were victims of the initial horrific acts. With this guilty plea, we have stopped the flow of these materials from one producer at the source. I would like to thank all who are involved and dedicated to halting the production of child pornography in this district.”
“This case shows anyone who produces child pornography can and will be held accountable for their criminal actions regardless of where in the world the investigation leads or how much time has passed,” said Raymond R. Parmer Jr., special agent in charge of Homeland Security Investigations-New Orleans. “Sexual abuse scars children for life, and HSI will continue to use all the tools in its arsenal, to include the HSI Operation Predator smartphone app that helped identify and locate Mr. Nixon in this case, to identify the perpetrators of these horrendous acts and seek justice on behalf of their victims.”
Homeland Security Investigations Shreveport, the Louisiana State Police, the Jackson Parish Sheriff’s Office and Canadian law enforcement investigated the case. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp.Printing Company Owner Pleads Guilty in Manhattan Federal Court to Kickback SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ROBERT T. MADISON pled guilty today for his participation in a scheme to pay kickbacks to two executives of a pharmaceutical marketing company in exchange for printing contracts. MADISON pled guilty before U.S. District Judge Paul A. Engelmayer.
Manhattan U.S. Attorney Preet Bharara said: “Rather than building a true business relationship, Robert Madison built one based on bribery –with everything from private jet travel to cash to payments at a “Gentlemen’s Club” – and deceit by directing the payments to third parties and controlled companies. Because of this, he will now pay over $1.4 million in restitution.”
According to the Indictment previously filed in Manhattan federal court, statements made during MADISON’s guilty plea, and other Court filings:
MADISON was the owner and operator of Creative Press, a printing and direct mail marketing company located in Phoenix, Arizona. MADISON’s company provided printing and direct mailing services to a New Jersey-based pharmaceutical marketing agency (the “Marketing Agency”). MADISON also owned and operated a company called East Coast Vending. From February 2007 through January 2009, ROBERT MADISON engaged in a scheme to commit honest services fraud by paying undisclosed kickbacks to, or for the benefit of, two executives at the Marketing Agency – Michael J. Mitrow and Matthew J. Mitrow – in order to continue the business relationship between the Marketing Agency and MADISON’s company.
MADISON took various steps to conceal from the Marketing Agency the kickback payments, including by causing certain payments to be made through East Coast Vending rather than Creative Press; causing payments to be made to third parties on behalf of Michael Mitrow and Matthew Mitrow rather than directly to them; and routing kickback payments through companies controlled by one of the executives and others.
Among the kickbacks that MADISON paid to or for the benefit of Michael Mitrow and Matthew Mitrow were the following: (i) over $700,000 in private jet travel by the Mitrows and their friends and relatives; (ii) approximately $426,000 to a company owned by one of the executives; (iii) approximately $39,000 in home renovations; (iv) a $19,000 payment to a New York City “Gentlemen’s Club;” and (v) approximately $30,000 in credit card debts.
MADISON, 43, of Henderson, Nevada, pled guilty to one count of conspiracy to commit honest services mail and wire fraud, and faces a maximum sentence of 20 years in prison. As part of his plea agreement with the Government, MADISON agreed to pay restitution of $1.416 million.
Michael Mitrow, 46, of Whitehouse Station, New Jersey, is charged with two counts of conspiracy to commit wire fraud, which each carry a maximum sentence of 20 years in prison, three counts of wire fraud, which each carry a maximum sentence of 20 years in prison, one count of tax evasion, which carries a maximum sentence of five years in prison, and one count of obstructing and impeding the IRS, which carries a maximum sentence of three years in prison.
Matthew Mitrow, 40, of Westfield, New Jersey, is charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
The charges against Michael Mitrow and Matthew Mitrow are merely accusations, and they are presumed innocent unless and until proven guilty.
North Texas Man Sentenced to 87 Months in Federal Prison for Role in Stolen Identity Refund Fraud (SIRF) ConspiracyRead the Press Release
DALLAS — A North Texas man who pleaded guilty to his role in a stolen identity refund fraud conspiracy was sentenced yesterday, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Tonderai Sakupwanya was sentenced to 87 months in federal prison and ordered to pay more than $2.6 million in restitution. Sakupwanya, who is in custody, pleaded guilty in May 2014 to one count of theft of public funds.
Co-defendant Reminico Zhangazha, also in custody, pleaded guilty to the same offense and is awaiting sentencing. He faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Restitution could be ordered.
The plea agreements with the government note that the defendants will forfeit the following property seized by law enforcement in May 2012 during the investigation of this case: $10,613 cash seized from Zhangazha’s vehicle; $93,513 cash from Villa Piana Luxury Apartments on Noel Road in Dallas; and $4,500 from a residence on Spring Mountain in Plano, Texas.
According to the factual resumes filed in the case, Zhangazha and Sakupwanya engaged in a scheme to defraud the Internal Revenue Service (IRS) by obtaining stolen tax refunds that were generated by e-filing false and fraudulent income tax returns. They rented private mailboxes in the names of aliases by using forged United Kingdom passports. They then established bank accounts using the alias names and mailing addresses acquired at the private mailboxes. During the course of the scheme, Zhangazha used the aliases of “Martin V. Masters” and “Roy Daniel Black.” Sakupwanya used the aliases of “Webster G. Rice,” “Floyd Robbins,” and “Floyd Roberts,” during the scheme, according to the factual resume.
According to the factual resumes, the Forms 1040 directed the IRS to electronically deposit the refunds into bank accounts the defendants established. Alternatively, the Forms 1040 directed refunds to be issued by a treasury check and mailed to an address under the control of the defendants. The income tax returns also directed refunds to accounts established at a third-party financial services company, such as EPS Financial, that would enable them to issue a check containing the tax refund. These third party checks and the treasury checks were deposited into bank accounts the defendants established. After the checks were deposited, or the tax refunds were electronically deposited, the defendants would withdraw the funds for their own use and benefit. The factual resumes note that the cash, mentioned above, which was seized from the defendants during the investigation, was obtained by them as a result of their scheme.
The case was investigated by IRS Criminal Investigation and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Chris Stokes is in charge of the prosecution.
North Carolina Man Indicted on Fraud Charge in Real Estate SchemeRead the Press Release
St. Louis, MO – HUBOLIST ELLIOTT was indicted for mail fraud in connection with a real estate investment scheme involving fractional interests in vacation properties.
According to the indictment, between 2009 and 2014, Elliott, and his company, Travel World Vacations, Inc., offered investment opportunities in vacation properties in Florida. The investment opportunity typically involved a fractional real estate transaction which Elliott and Travel World Vacations, Inc., presented to investors as an opportunity to purchase and own a deeded interest in a specific vacation property. As part of the alleged scheme, typically neither Elliott nor Travel World Vacations, Inc. owned any interest in the properties being offered to investors as available for a fractional real estate purchase. In some instances, the real property represented as an opportunity for investment and ownership did not exist. In other instances, the real property represented as an opportunity for investment and ownership did exist but neither Elliott nor Travel World had a legal interest, fractional or otherwise, that could be conveyed to an investor or any right to enter into a transaction regarding that property.
The indictment further alleges that ten or more investors, including one investor from the St. Louis area, invested in Elliott’s fractional real estate scheme. Expected losses as a result of the scheme total more than $1,000,000.
Elliott, of Cary, North Carolina, was indicted by a federal grand jury on December 10th on one felony count of mail fraud. The indictment remained sealed until the defendant’s arrest, which occurred in North Carolina on December 29, 2014. His first court appearance in the Eastern District of Missouri was earlier today.
If convicted, this charge carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the U.S. Postal Inspection Service. United States Attorney Charles Birmingham is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.North Carolina Man Indicted on Fraud Charge in Real Estate SchemeRead the Press Release
St. Louis, MO – HUBOLIST ELLIOTT was indicted for mail fraud in connection with a real estate investment scheme involving fractional interests in vacation properties.
According to the indictment, between 2009 and 2014, Elliott, and his company, Travel World Vacations, Inc., offered investment opportunities in vacation properties in Florida. The investment opportunity typically involved a fractional real estate transaction which Elliott and Travel World Vacations, Inc., presented to investors as an opportunity to purchase and own a deeded interest in a specific vacation property. As part of the alleged scheme, typically neither Elliott nor Travel World Vacations, Inc. owned any interest in the properties being offered to investors as available for a fractional real estate purchase. In some instances, the real property represented as an opportunity for investment and ownership did not exist. In other instances, the real property represented as an opportunity for investment and ownership did exist but neither Elliott nor Travel World had a legal interest, fractional or otherwise, that could be conveyed to an investor or any right to enter into a transaction regarding that property.
The indictment further alleges that ten or more investors, including one investor from the St. Louis area, invested in Elliott’s fractional real estate scheme. Expected losses as a result of the scheme total more than $1,000,000.
Elliott, of Cary, North Carolina, was indicted by a federal grand jury on December 10th on one felony count of mail fraud. The indictment remained sealed until the defendant’s arrest, which occurred in North Carolina on December 29, 2014. His first court appearance in the Eastern District of Missouri was earlier today.
If convicted, this charge carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the U.S. Postal Inspection Service. United States Attorney Charles Birmingham is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Non-Indian Physician Employed by Indian Health Services Arrested on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Thomas Murray, 61, a non-Indian who resides in Acoma Pueblo, N.M., was arrested yesterday by the FBI on federal child pornography charges. Murray made his initial appearance in federal court earlier today. He remains in custody pending a preliminary hearing and detention hearing, both of which currently are scheduled for tomorrow morning.
Murray is a physician who relocated to New Mexico in Oct. 2014, from Ohio to take a position as a general practitioner with Indian Health Services at the Acoma-Canoncito-Laguna Service Unit located in Acoma Pueblo. Murray is charged in a criminal complaint with transporting, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.According to the criminal complaint, the FBI initiated the federal investigation leading to Murray’s arrest on Dec. 19, 2014, after receiving a report from the New Mexico Attorney General’s Office. The report alleged that investigation by an investigation by the New Mexico Internet Crimes Against Children (ICAC) Task Force revealed that an IP Address subscribed to Murray’s residential address in Acoma was being used to download and distributing images consistent with child pornography. According to the criminal complaint, the FBI arrested Murray and executed a federal search warrant at his residence on Jan. 5, 2015.
If convicted of the three charges in the criminal complaint, Murray faces a federal prison term of not less than five years and not more than 20 years. Murray also would be required to register as a sex offender. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the FBI, the New Mexico Attorney General’s Office, the New Mexico ICAC Task Force and the New Mexico Regional Computer Forensic Laboratory. The case is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 74 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Nigerian Man Convicted of Human Trafficking in Belgium, Arrested in United States; Extradition Proceedings PendingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Edward Eguavoen, 45, of Nigeria, who was convicted in Belgium of human trafficking for the purposes of prostitution, was arrested and held for extradition.“To those who thought that slavery ended centuries ago, this case stands as a stark reminder that human beings are still being stolen and forced into incomprehensible conditions,” said U.S. Attorney Hochul. “Nor do the problems of the world avoid Buffalo. Because of the devastation that human trafficking brings to victims and society, this Office will not hesitate to prosecute any who would engage in this sort of unconscionable crime.”
Assistant U.S Attorney Paul J. Campana, who is handling the case, stated that according to the underlying complaint supporting the arrest, Eguavoen attempted to enter the United States at the Peace Bridge Port of Entry on December 21, 2014 using a Canadian passport under a different name. Subsequent investigation by the Department of Homeland Security determined that the defendant is wanted by Belgian authorities on a 2005 human trafficking conviction.
The Belgian conviction involves the forced inducement of seven Nigerian women for prostitution between July 1999 and November 2002. The victims were brought from Nigeria to Belgium by a criminal organization of which the defendant was a member. Once in Belgium, the victims were given documentation indicating Sierra Leon as their country of origin, and told to file applications for asylum in Belgium.
The victims were then taken and forced into prostitution in brothel houses controlled by the criminal organization. The victims were given “working names” and advertised in magazines and newspapers. The organization running the prostitution business threatened the victims to prevent them from speaking to law enforcement.
Sometime following his 2005 conviction, the defendant fled Belgium. The defendant was subsequently sentenced in absentia in October 2007 to concurrent seven year prison terms. The defendant had apparently been residing in Canada prior to his most recent arrest.
The defendant made an initial appearance before U.S. Magistrate Judge Hugh B. Scott and is being detained. Eguavoen is due back in court on February 4, 2015 at 10:00 a.m.
The extradition arrest and complaint 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.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Newton Grove Man Sentenced to 120 MonthsRead the Press Release
NEW BERN – United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Louise W. Flanagan sentenced GLEN ALLEN STEWART, JR., 24, of Newton Grove, North Carolina, to 120 months’ imprisonment followed by three years’ supervised release.
On May 13, 2014, a Federal Grand Jury returned a one-count Criminal Indictment charging STEWART with unlawful possession of a firearm and ammunition by a previously convicted felonOn October 16, 2014, following a three-day trial, STEWART was found guilty of the charge.
According to evidence produced at trial, STEWART was stopped by local law enforcement for a traffic violation. STEWART tried to flee during the traffic stop, but was apprehended. During the stop officers found STEWART to be in possession of a loaded Colt, Mark IV, .45 caliber firearm with an extended magazine, an additional magazine, and 58 rounds of ammunition.
The criminal investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Harnett County Sheriff’s Office; and the Dunn Police Department. Assistant United States Attorneys Jane J. Jackson and Erin Blondel handled the prosecution on behalf of the Eastern District of North Carolina.
Newington Man Sentenced to More Than 8 Years in Prison for Orchestrating Mortgage Fraud SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FILIPPOS MILIOS, also known as Filip Milios, 56, of Newington, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 97 months of imprisonment, followed by five years of supervised release, for orchestrating a mortgage fraud scheme that involved dozens of Connecticut properties and resulted in nearly $5.7 million in losses to lenders.
According to court documents and statements made in court, from approximately June 2005 to July 2010, MILIOS and others conspired to defraud banks and mortgage lenders in obtaining dozens of mortgages for the sale of properties owned by MILIOS and others. The conspiracy involved the use of straw borrowers, false mortgage applications, false HUD-1 forms and fraudulent down payments in connection with the purchase of more than 50 houses primarily located in Hartford, New Haven and Middlesex counties.
As part of the scheme, MILIOS purchased properties, either in his own name, in a limited liability corporation in which he had an interest, or in the name of a co-conspirator. MILIOS and others then recruited borrowers to purchase these properties. Unbeknownst to the lenders who extended mortgages to the borrowers, MILIOS and his co-conspirators submitted fraudulent documents in connection with the loan applications, including false HUD-1 forms, employment verification letters and rental verification letters.
MILIOS also made the down payments on behalf of the borrowers who were recruited to purchase the properties. Attorney Gabriel Serrano, who served as a closing attorney for most of the fraudulent transactions, often released the seller’s proceeds checks from closing to MILIOS before receiving the down payment, and MILIOS used the seller’s proceeds checks to purchase the down payment check for the same transaction. MILIOS also failed to disclose to mortgage lenders that he paid money to borrowers, mortgage brokers, and recruiters.
MILIOS also engaged in a money laundering conspiracy with Serrano. The conspiracy involved Serrano’s disbursing the fraudulently-obtained loan proceeds to the private lenders who had loaned MILIOS money when he originally purchased the properties.
Lenders lost $5,692,813 as a result of this scheme.
MILIOS was originally charged by criminal complaint in January 2013 and has been detained since March 20, 2014, when his bond was revoked after he made an attempt to flee the country on a shipping container vessel while awaiting trial. On September 15, 2014, he pleaded guilty to one count of conspiracy to commit mail and bank fraud, and one count of conspiracy to commit money laundering.
MILIOS, who is a citizen of Greece, faces immigration proceedings when he is released from prison.
On August 6, 2013, Serrano also pleaded guilty to one count of conspiracy to commit mail and bank fraud, and one count of conspiracy to commit money laundering. Seven other co-conspirators involved in this scheme have also pleaded guilty. All await sentencing.
This case is being investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Internal Revenue Service – Criminal Investigation Division, the U.S. Postal Inspection Service and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys David T. Huang and William J. Nardini.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]New York Man Sentenced to Prison for Counterfeit Cash SchemeRead the Press Release
ERIE, Pa. - A former resident of Binghamton, New York, has been sentenced in federal court to 24 months in jail on his conviction of violating federal counterfeiting laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Larry Patterson, 60.
According to information presented to the court, Patterson manufactured counterfeit federal reserve notes by converting one and five dollar notes into $100 notes. Patterson then mailed the notes to a location in Pennsylvania where they were seized by law enforcement.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Secret Service and the Pennsylvania State Police for the investigation leading to the successful prosecution of Patterson.
Navy Commander Pleads Guilty to Accepting Cash and Prostitutes in International Bribery SchemeRead the Press Release
U.S. Navy Commander Admits Providing Contractor with Classified Ship Schedules; Becomes Fifth of Seven Defendants to Plead GuiltySAN DIEGO, CA – U.S. Navy Commander Jose Luis Sanchez pleaded guilty to bribery charges in federal court today, admitting that he provided a government contractor with classified ship schedules and other internal U.S. Navy information in exchange for cash, travel and entertainment expenses and the services of prostitutes.
Sanchez, 42, an active duty U.S. Navy Officer stationed in San Diego, is one of seven defendants charged – and the fifth to plead guilty – in the corruption probe involving Glenn Defense Marine Asia (GDMA), a defense contractor based in Singapore that serviced U.S. Navy ships and submarines throughout the Pacific.
Sanchez, the highest-ranking Naval official to plead guilty in the case so far, admitted to bribery and bribery conspiracy before U.S. Magistrate Judge David H. Bartick. A sentencing hearing was scheduled for March 27, 2015, at 9 a.m., before U.S. District Judge Janis L. Sammartino.
“Commander Sanchez lost sight of the Navy’s core values and embraced a lifestyle of greed,” said U.S. Attorney Laura Duffy. “We continue to unearth the full scope of this pernicious fraud and bribery scheme, and we will pursue the evidence, wherever it leads us.”
“Commander Sanchez sold out his command and country for cash bribes, luxury hotel rooms, and the services of prostitutes,” said Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division. “After today’s guilty plea, instead of free stays at the Shangri-La hotel, Sanchez is facing many nights in federal prison. The Department of Justice’s Criminal Division is committed to prosecuting those who abuse positions of public trust for personal enrichment at the expense of national security and the American taxpayers.”
“During the course of the investigation into the criminal enterprise, investigators have compiled voluminous evidence identifying multiple persons of interest, generating numerous leads, and establishing and corroborating connections,” said Director Andrew L. Traver of the Naval Criminal Investigative Service (NCIS). “NCIS and our law enforcement partners are committed to seeing this massive fraud and bribery investigation through to its conclusion, so that those responsible are held accountable.”
“This outcome again sends the message that corruption will be vigorously investigated and prosecuted,” said Deputy Inspector General of Investigations James B. Burch of the Department of Defense, Defense Criminal Investigative Service. “This is an unfortunate example of dishonorable Naval officers who recklessly risked the safety of our troops by trading classified information for cash, extravagant gifts and prostitutes. Cases such as these are not motivated by need or other difficult personal circumstances; they are the product of simple greed. This investigation should serve as a warning that those who compromise the integrity of the United States will face their day of reckoning. DCIS and our law enforcement partners will pursue these crimes relentlessly.”
According to his plea agreement, from April 2008 to April 2013, Sanchez held various logistical positions with the U.S. Navy’s Seventh Fleet in Asia. Sanchez admitted that, beginning in September 2009, he entered into a bribery scheme with Leonard Glenn Francis, the CEO of GDMA, in which Sanchez provided classified U.S. Navy ship schedules and other sensitive U.S. Navy information to Francis and used his position and influence within the U.S. Navy to benefit GDMA. In return, Francis gave him things of value such as cash, travel and entertainment expenses, and the services of prostitutes. Sanchez admitted that this bribery scheme continued until September 2013.
In his plea agreement, Sanchez admitted to seven specific instances in which he provided Francis with classified U.S. Navy ship and submarine schedules. He also admitted using his position and influence with the U.S. Navy to benefit GDMA and Francis on various occasions. Further, Sanchez admitted that he tipped Francis off about investigations into GDMA overbillings and briefed Francis on internal U.S. Navy deliberations.
Sanchez further admitted that, in exchange for this information, Francis provided him with cash, entertainment and stays at high-end hotels. For example, in May 2012, Francis paid for Sanchez to stay five nights at the Shangri-La, a luxury hotel in Singapore, and, two months later, Francis paid for Sanchez’s travel from Asia to the United States, at a cost of over $7,500. According to the plea agreement, Francis arranged and paid for the services of prostitutes for Sanchez while Sanchez was in Singapore and elsewhere in Asia.
In addition to Sanchez, two other U.S. Navy officials – former NCIS Special Agent John Beliveau and Petty Officer First Class Dan Layug – have pleaded guilty in this case, as well as former GDMA executives Alex Wisidagama and Edmond Aruffo.
Also today, U.S. Navy Captain-Select (Commander) Michael Vannak Khem Misiewicz, 47, who was previously charged via information, was indicted by a federal grand jury in the Southern District of California on seven additional bribery counts.
According to allegations in the indictment, from at least as early as July 2011 until September 2013, Misiewicz provided classified U.S. Navy ship schedules and other sensitive U.S. Navy information to Francis and used his position and influence within the U.S. Navy to advance the interests GDMA. In return Francis allegedly gave him things of value such as cash, travel and entertainment expenses, and the services of prostitutes.
The ongoing investigation is being conducted by NCIS, DCIS and the Defense Contract Audit Agency. The case is being prosecuted by Assistant U.S. Attorneys Mark W. Pletcher and Robert S. Huie of the Southern District of California and Director of Procurement Fraud Catherine Votaw and Trial Attorney Brian R. Young of the Criminal Division’s Fraud Section.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
DEFENDANT Case Number: 13-CR-4287 Jose Luis Sanchez Age: 42 San Diego, CA CHARGESConspiracy to Commit Bribery, in violation of 18 U.S.C. § 371
DEFENDANT Case Number: NYA Michael Vannak Khem Misiewicz Age: 47 San Diego, CA CHARGES
Bribery, in violation of 18 U.S.C. § 201Conspiracy to Commit Bribery, in violation of 18 U.S.C. § 371
INVESTIGATING AGENCIES
Bribery, in violation of 18 U.S.C. § 201Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency*An indictment or complaint itself is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Multiple Clarksburg, WV residents charged with heroin, cocaine traffickingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – A federal grand jury returned indictments today charging multiple Clarksburg, West Virginia residents with heroin and cocaine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Jason Grant, 30, Whitney M. Golden, 25, and Marcus McBride, 24, all of Clarksburg, West Virginia, are alleged to have repeatedly sold heroin near the Monticello Avenue Playground in Clarksburg throughout late 2014.
Grant is charged with: One count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin,” for which he faces up to 20 years in prison and a fine of up to $1,000,000.00.
Four counts of “Distribution of Heroin within 1000’ of a Protected Location.” He faces between one and forty years in prison and a fine of up to $2,000,000.00 on each count.
One count of “Possession With Intent to Distribute Heroin within 1000’ of a Protected Location,” for which he faces between one and forty years in prison and a fine of up to $2,000,000.00.
One count of “Possession of a Firearm in Furtherance of a Drug Trafficking Crime,” for which he faces between five years and life in prison and a fine of up to $250,000.00.
Golden is charged with: One count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin,” for which she faces up to 20 years in prison and a fine of up to $1,000,000.00.
One count of “Distribution of Heroin within 1000’ of a Protected Location,” for which he faces between one and forty years in prison and a fine of up to $2,000,000.00.
One count of “Possession With Intent to Distribute Heroin within 1000’ of a Protected Location,” for which she faces between one and forty years in prison and a fine of up to $2,000,000.00.
All three defendants are charged with one count of “Maintaining Drug-Involved Premises – Aiding and Abetting,” for which they each face up to 20 years in prison and a fine of up to $500,000.00.
Douglas Dustin Lish, 29, and Brittany Faith Hurst, 24, both of Clarksburg, West Virginia, allegedly sold heroin and cocaine throughout late 2014.
Both defendants are charged with: One count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin.” They each face up to 20 years in prison and a fine of up to $1,000,000.00.
One count of “Possession with Intent to Distribute Heroin.” They each face up to 20 years in prison and a fine of up to $1,000,000.00.
One count of “Maintaining Drug-Involved Premises – Aiding and Abetting,” for which they each face up to 20 years in prison and a fine of up to $500,000.00.
Lish is further charged with: Three counts of “Distribution of Heroin.” He faces up to 20 years in prison and a fine of up to $1,000,000.00 on each count.
One count of “Possession of a Firearm in Furtherance of a Drug Trafficking Crime,” for which he faces between five years and life in prison and a fine of up to $250,000.00.
One count of “Felon in Possession of a Firearm,” for which he faces up to ten years in prison and a fine of up to $250,00.00.
One count of “Distribution of Cocaine,” for which he faces up to 20 years in prison and a fine of up to $1,000,000.00.
Al-Teric Garrett, 23, of Clarksburg, West Virginia, was allegedly involved in heroin and cocaine trafficking throughout 2014. He is charged with one count of “Possession with Intent to Distribute Heroin Within 1000 Feet of a Protected Location” and two counts of “Distribution of Cocaine Base Within 1000 Feet of a Protected Location. He faces between one and forty years in prison and a fine of up to $2,000,000.00 on each of the three counts.
The Greater Harrison County Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated all of the defendants. The Bureau of Alcohol, Tobacco, Firearms and Explosives assisted in investigating Lish and Hurst.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Mount Vernon Man Charged in White Plains Federal Court with Threatening to Shoot Police OfficersRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of JEREMY MOTT on charges of threatening to shoot members of the Police Department of the City of Mount Vernon, New York. The Complaint alleges that MOTT posted messages on Internet social media sites in which he threatened to shoot Mount Vernon police officers and included a digital image depicting the shooting of a police officer.
MOTT was taken into federal custody today. He was presented in White Plains federal court before U.S. Magistrate Judge Lisa Margaret Smith and was released on bond.
U.S. Attorney Preet Bharara stated: “We will not tolerate threats of violence against police officers. Period. Here, as alleged, social media were used for the threat. Law enforcement should not have to wait to see whether a threat will be acted on, so now the defendant will have to answer for his threatening intentions, as charged.”
FBI Assistant Director-in-Charge George Venizelos stated: “As we seen all too often, social media is used as a platform for posting threats against members of the law enforcement community. As alleged, Mott made significant online threats in which he threatened to shoot Mount Vernon police officers. Those who threaten the lives of law enforcement officers through interstate communications will be fully investigated by the FBI and our partners.”
According to allegations in the Complaint unsealed today in White Plains federal court:
MOTT posted messages on Facebook and Instagram, both of which included digital images of an individual discharging a firearm into a police vehicle through the driver’s side window. The Facebook message included the threat, “I SWEAR IF COPS IN MOUNT VERNON THINK THEY CAN FOLLOW THE MADNESS THIS IS HOW THEY GOING TO END UP.” The Instagram message included the threat, “THEY BETTER KEEP THAT CRAZY SHYT AWAY FROM MOUNT VERNON CAUSE ME & MY [N****S] NOT PLAYING NO GAMES WITH THEM PPL ! !”
MOTT, 24, of Mount Vernon, New York, is charged with one count of making interstate threats, which upon conviction carries a maximum sentence of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Bharara praised the outstanding investigative work of the FBI’s Westchester Violent Crimes Task Force, which comprises agents and detectives of the FBI, Homeland Security Investigations, the City of Yonkers Police Department, the Westchester County Department of Public Safety, and the Westchester County District Attorney’s Office. He also thanked the Police Department of the City of Mount Vernon. He added that the investigation is continuing.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Douglas Zolkind is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Mott.complaint.signed
Miami Dock Builder Sentenced for Building Illegal Structures in Navigable WatersRead the Press Release
A Miami dock builder was sentenced to one year probation for building illegal structures in navigable waters.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Maureen O’Mara, Special Agent in Charge, U.S. Environmental Protection Agency, Criminal Investigation Division (EPA-CID), and Colonel Alan M. Dodd, U.S. Army Corps of Engineers, made the announcement.
Jose Miguel Calvo, of Miami, Florida, was sentenced for the violation of federal law involving the illegal construction of structures, including docks and piers, in navigable waters of the U.S., in violation of the Rivers and Harbors Act. He was sentenced on one misdemeanor count of knowingly placing and erecting structures, docks, and piers within navigable waters of the U.S., without, or in violation of, valid permit issued by the U.S. Army Corps of Engineers authorizing such conduct.
Pursuant to the terms of the plea agreement, Calvo must file any necessary permit applications for ten Miami-area installations, and complete any corrective action required by the Army Corps of Engineers pursuant to the Rivers and Harbors Act, to include modifications or alterations of the structures, including the payment of mitigation for damage to natural resources.
Mr. Ferrer commended the investigative efforts of EPA’s Criminal Investigation Division and the U.S. Army Corps of Engineers. This case was prosecuted by Special Assistant U.S. Attorney Jodi A. Mazer and Assistant U.S. Attorney Thomas Watts-FitzGerald.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Manhattan U.S. Attorney and FBI Assistant Director Announce Arrests of Five Defendants in Multimillion-Dollar Corporate Accounting FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrests of STEVEN KAITZ, LATCHMEE MAHATO, a/k/a “Robbie,” JONATHAN WHEELER, and ZACHARY KAITZ, former executives and employees of a New Jersey-based company that provided in-store displays for retailers (the “Company”), and KATHLEEN SMITH, a former employee of a New York-based sports apparel and footwear retailer that was a major customer of the Company (“Customer-1”), in connection with an elaborate scheme to defraud the Company’s lenders and customers out of millions of dollars. Among other things, the defendants fraudulently inflated the Company’s sales and accounts receivables to secure millions of dollars in loans, and falsely verified to the Company’s lenders and outside auditors false financial information about the Company. The defendants were arrested this morning and are expected to be presented later today in Manhattan federal court before United States Magistrate Judge James L. Cott. The defendants will be arraigned tomorrow at 4:00 p.m. before United States District Judge Jed S. Rakoff.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, the defendants went to elaborate lengths to falsify company accounting data to defraud lenders and customers. To bolster the falsehoods, the defendants allegedly created fake email accounts for fictitious employees of the defrauded customers. Now they will be made to answer for the charged collusion and self-dealing that supplanted honest business practices.”
FBI Assistant Director-in-Charge George Venizelos said: “As alleged, the defendants concocted a scheme to make millions of dollars and concealed their misdeeds by lying to customers and lenders. Their dishonesty resulted in unjust enrichment at the expense of unsuspecting customers, burdening lenders with bad loans and weakening our financial markets. Those who engage in this type of financial fraud will be identified and held accountable.”
According to the allegations contained in the Indictment unsealed today in Manhattan federal court:
STEVEN KAITZ, WHEELER, and MAHATO (the “Management Defendants”) were the three owners and principals of the Company, and ZACHARY KAITZ served as the Company’s Vice President of Creative Services. SMITH worked for Customer-1 – one of the Company’s two largest customers – and was the director of a business unit that handled visual displays for Customer-1. From approximately 2012 to May 2014, in order to trick various lenders into lending millions of dollars to the Company, the defendants engaged in a scheme to falsely inflate the Company’s revenue and accounts receivables, and as part of the scheme, made and caused to be made materially false and misleading statements about the Company’s financial condition. To create the false impression of sales, the defendants created phony documents, including fake and falsely inflated purchase orders purporting to reflect sales to the Company’s customers. The defendants also tricked certain of the Company’s customers, including Customer-1, into paying falsely inflated invoices from the Company. For her role in the scheme, SMITH received substantial kickbacks from the Management Defendants that included cash payments, personal family vacations, and home renovations.
The defendants took elaborate steps to keep the scheme afloat and prevent the Company’s lenders and outside auditors from discovering the fraud. For example, STEVEN KAITZ, WHEELER, and MAHATO created fake email accounts purporting to belong to fictitious employees of Customer-1 and “Customer-2” (a multinational designer and manufacturer of athletic footwear, clothing, and accessories, with U.S. headquarters in Portland, Oregon). To do so, the defendants used domain names that were very similar to the actual domain names used by Customer-1 and Customer-2. These defendants operated the fake email accounts themselves, pretending to be employees of Customer-1 and Customer-2, and then used those fake email accounts to “verify” false information about the Company’s financial condition, including its sales and accounts receivables, to the Company’s lenders and outside auditors. Further, at the Management Defendants’ direction, and in exchange for kickbacks, SMITH also falsely “verified” to the Company’s lenders certain financial information concerning the Company, including the amounts of money that Customer-1 supposedly owed the Company, even though SMITH knew those amounts were false. SMITH also caused Customer-1 to pay invoices from the Company that she knew were falsely inflated.
As another example of the steps taken to keep their scheme afloat, STEVEN KAITZ, WHEELER, and MAHATO utilized shell companies to engage in “round-trip” transactions to create the false appearance that customers were paying the Company’s phony outstanding receivables. ZACHARY KAITZ, who was skilled in graphic design, helped carry out the fraud by creating fraudulent documentation, such as fake invoices, purchase orders, and bills of lading, to support the false representations to the lenders about the Company’s business.
STEVEN KAITZ, WHEELER, and MAHATO misappropriated approximately $2.8 million of the loan proceeds for their own personal use, to pay for homes and luxury cars, private school tuition, and personal credit card bills, as well as kickbacks to SMITH.
As of May 2014, when the Company’s lenders terminated their lending relationships with the Company after discovering the fraud, the Company had approximately $18.6 million in loans outstanding.
STEVEN KAITZ and ZACHARY KAITZ are also charged in a separate mortgage fraud scheme based on their creation of fake documents that STEVEN KAITZ used to secure a mortgage for a vacation home in Martha’s Vineyard, Massachusetts.
STEVEN KAITZ, 56, of Jersey City, New Jersey, is charged with one count of conspiracy to commit bank fraud and wire fraud, and two counts of bank fraud, each of which carries a maximum sentence of 30 years in prison; and one count of conspiracy to commit honest services wire fraud, one count of wire fraud, and one count of conspiracy to commit money laundering, each of which carries a maximum sentence of 20 years.
LATCHMEE MAHATO, a/k/a “Robbie, 49, of Jamaica, Queens, is charged with one count of conspiracy to commit bank fraud and wire fraud, and one count of bank fraud, each of which carries a maximum term of 30 years; and one count of conspiracy to commit honest services wire fraud, one count of wire fraud, and one count of conspiracy to commit money laundering, each of which carries a maximum sentence of 20 years.
JONATHAN WHEELER, 46, of Southport, Connecticut, is charged with one count of conspiracy to commit bank fraud and wire fraud, and one count of bank fraud, each of which carries a maximum term of 30 years; and one count of conspiracy to commit honest services wire fraud, one count of wire fraud, and one count of conspiracy to commit money laundering, each of which carries a maximum sentence of 20 years.
KATHLEEN SMITH, 49, of South Plainfield, New Jersey, is charged with one count of conspiracy to commit bank fraud and wire fraud, and one count of bank fraud, each of which carries a maximum term of 30 years; and one count of conspiracy to commit honest services wire fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years.
ZACHARY KAITZ, 31, of Brooklyn, New York, is charged with one count of conspiracy to commit bank fraud and wire fraud, and two counts of bank fraud, each of which carries a maximum sentence of 30 years; and one count of wire fraud, which carries a maximum sentence of 20 years.
Mr. Bharara praised the outstanding investigative work of the FBI.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Joshua A. Naftalis and Rosemary Nidiry are in charge of the prosecution.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Steven Kaitz, et al. Indictment
Man Sentenced to Prison for Harboring Illegal AlienRead the Press Release
Contact: Steve Young
A Texas man who harbored an illegal alien was sentenced today to nine months in federal prison.
Roman Sanchez, age 33, from Mission, Texas, received the prison term after a September 18, 2014, guilty plea to one count of harboring, encouraging, and inducing an alien to reside in the United States.
In a plea agreement, Sanchez admitted that in March and April 2014 he recruited a Mexican citizen to work and reside in the United States in violation of the law. Knowing that this person was not authorized to live or work in the United States, Sanchez employed him to build and tear down grain bins in Texas and Iowa.
Sanchez was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Sanchez was sentenced to nine months’ imprisonment and fined $2,000. A special assessment of $100 was imposed, he was ordered to make $500 in restitution, and pay $2,000 in legal fees. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Sanchez was released on the bond previously set and is to surrender to the United States Marshal on January 26, 2015.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Homeland Security Investigations; the Fayette County Sheriff’s Office, the Winneshiek County Sheriff’s Office, the Bremer County Sheriff’s Office, and the Iowa Department of Transportation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-2038.
Luzerne County Man Sentenced to 72 Months in Prison for Conspiracy to Commit Sex Trafficking of A MinorRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Gregory Boone, age 30, Pittston, Pennsylvania, was sentenced today by Senior U.S. District Court Judge Edwin M. Kosik to 72 months in prison for conspiring with others to recruit, harbor, and transport minor females to engage in commercial sex acts for money during the summer of 2013 in Luzerne and Dauphin counties.
According to United States Attorney Peter Smith, Boone previously admitted to participating in a scheme to use minor females to engage in prostitution. Boone and his co-conspirators used cell phones to produce and transmit photographs of the females which were posted on a website to facilitate prostitution activities in motels in Luzerne County and in the Harrisburg area of Pennsylvania.
Boone was indicted by a federal grand jury in December 2013, as a result of an investigation by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Pennsylvania State Police, Pittston Police, and the Luzerne County District Attorney’s Office.
Judge Kosik also ordered Boone to serve a life term of supervised release following his prison sentence. Boone will also have to register as a sex offender and comply with sex offender registration, notification, and association requirements.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
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."
Lakewood Man Faces Child Pornography ChargesRead the Press Release
William S. Burnett, 59, of Lakewood, Ohio, was charged last week with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about October 28, 2012, through on or about September 20, 2014, in the Northern District of Ohio, Eastern Division, and elsewhere, Burnett knowingly received and distributed in interstate and foreign commerce, by computer, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct. The indictment also charges that on October 22, 2014, Burnett possessed a computer hard drive that contained child pornography.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique 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.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Ohio Internet Crimes Against Children Task Force and the United States Secret Service.
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.
Judge Sentences Felon to 41 Months in Prison for Illegal Gun PossessionRead the Press Release
ERIE, Pa. - A former resident of Lancaster, Pennsylvania pleaded guilty and was sentenced in federal court to 41 months in jail on his conviction of violating federal guns laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Nicholas Alexander Reynolds, 23.
According to information presented to the court, on or about December 19, 2013, Reynolds possessed a firearm while being a convicted felon.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Marshal’s Service and the Titusville Police Department for the investigation leading to the successful prosecution of Reynolds.
Greenville Man Sentenced for Selling CocaineRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Louise W. Flanagan sentenced CECIL VANN GILBERT, 31,of Greenville, North Carolina, to 188 months in prison and 3 years of supervised release for three counts of distribution of cocaine and one count of possession with the intent to distribute cocaine and aiding and abetting. GILBERT previously pled guilty to these charges on October 16, 2014.
Between May 14, 2014, and May 27, 2014, the Greenville Regional Drug Task Force used an informant to buy cocaine from GILBERT on four occasions. On July 2, 2014, officers planned to arrest GILBERT. Officers attempted to stop a car in which GILBERT was riding; however, the driver, Alex Stancil, refused to stop and drove at a high rate of speed on and around Kristin Drive in Greenville. An officer deployed “stop strips” which deflated the car’s tires and the car wrecked into a tree. GILBERT and the driver, Alex Stancil, were arrested. Officers found 13.88 grams of cocaine and .33 grams of marijuana in the car.
GILBERT received an enhanced punishment as a career offender based on his two prior state convictions for discharging a weapon into occupied property.
The investigation of this case was conducted by the Greenville Regional Drug Task Force. The Greenville Regional Drug task force is comprised of officers from the Pitt County Sheriff’s Office, Greenville Police Department, North Carolina State Bureau of Investigations, Farmville Police Department, East Carolina University Police Department and the Winterville Police Department. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Frederick Man Admits to Fraudulently Accessing His Former Employer’s Computer SystemRead the Press Release
Fraudulently Copied Personal Information on Over 11,000 Clients
Baltimore, Maryland – Alexander Afonso, age 40, of Frederick, Maryland, pleaded guilty yesterday to identity theft.The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to his plea agreement, Afonso worked as an IT manager/systems administrator at Service Coordination, Inc. (SCI), a non-profit corporation principally located in Frederick, for approximately three months. SCI provides case management services to Marylanders with intellectual and developmental disabilities. SCI terminated Afonso’s employment on October 13, 2013, and informed Afonso that his authorization to access SCI’s computers systems had been revoked.
However, beginning on October 17, 2013, Afonso repeatedly accessed the computer systems of SCI remotely through the Internet, without authorization from SCI. Alfonso used the username and password of a current SCI employee who was on disability leave at the time. Afonso obtained information concerning the computer network of SCI, and copied personal identifying information data on 11,238 SCI clients, which he emailed from the current employee’s account to himself.
As a result of Afonso’s conduct, SCI spent $38,672 to retain forensic examiners to respond to the breach of its systems and restore the security of its systems. SCI also incurred $12,473 in printing and mailing required breach notifications to all affected clients. SCI has also been required to offer identity theft protection to all its affected clients, and has spent $63,712 for protection services accepted by affected clients. Finally, SCI also incurred significant costs in employee and executive team time which was redirected from SCI work to respond to the breach.
The total loss attributed to the fraudulent scheme is between $70,000 and $120,000.
Afonso faces a maximum sentence of five years in prison and a $250,000 fine. U.S. District Judge Marvin J. Garbis scheduled sentencing for March 23, 2015 at 10:00 a.m.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney P. Michael Cunningham and Special Assistant U.S. Attorney Anthony V. Teelucksingh, who are prosecuting the case.
Four Siblings Sentenced to Prison Terms for Carrying Out Two Robberies in D.C. and Maryland-Crimes Took Place Within 36-Hour Period in May 2014-Read the Press Release
WASHINGTON – Three brothers and their sister, all from Washington, D.C., were sentenced today to prison terms for a pair of robberies that took place within a 36-hour period of a convenience store in Montgomery County, Md. and a bank in the District of Columbia.
The sentencing was announced by U.S. Attorney Ronald C. Machen Jr., Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
The brothers – Alex Alexander, Alvin Alexander and Allante Alexander - pled guilty in October 2014 in the U.S. District Court for the District of Columbia to one count of conspiracy to interfere with interstate commerce by robbery and one count of bank robbery. Their sister – Allesha Alexander – pled guilty in October 2014 to one count of conspiracy to interfere with interstate commerce by robbery and one count of acting as an accessory to bank robbery.
The Honorable Senior Judge Paul L. Friedman sentenced Alex Alexander, 22, to 36 months in prison; Alvin Alexander, 24, to 39 months; Allante Alexander, 20, to 36 months, and Allesha Alexander, 25, to 20 months. Upon completion of their prison terms, they will be placed on three years of supervised release. The judge also ordered them to pay $958 in restitution.
According to the government’s evidence, the Alexander brothers entered the Colombo Bank, in the 1300 block of 9th Street NW, at approximately noon on May 12, 2014. After leaving the bank, they decided that they were going to return at some point to rob it.
On May 13, 2014, and continuing into May 14, 2014, according to the government’s evidence, the Alexander brothers and their sister were riding around the District of Columbia, in the sister’s vehicle, when they decided they were going to rob a convenience store located at a gas station in the 8300 block of Colesville Road in Silver Spring, Md.
When the four siblings arrived at the convenience store at approximately 2:55 a.m. on May 14, 2014, they entered the establishment and robbed the attendant of about $158 before fleeing the scene and returning to the District of Columbia.
On May 15, 2014, at approximately 10:30 a.m., the Alexander brothers returned to the Colombo Bank on 9th Street NW, in their sister’s vehicle. According to the government’s evidence, the three brothers entered the bank while their sister waited inside her vehicle. The brothers robbed the teller of approximately $800 before fleeing to the waiting vehicle. In fleeing the scene, they dropped the money.
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge McCabe, and Chief Lanier commended the investigative work of the Special Agents from the FBI’s Washington Field Office who worked on the case and the entire joint FBI/MPD Violent Crimes Task Force. In addition, they acknowledged the work of Legal Assistant Candice Sisco, Paralegal Specialist Starla Stolk, and Assistant U.S. Attorney Diane Lucas of the Asset Forfeiture and Money Laundering Section. Finally, they expressed appreciation for the work of Assistant U.S. Attorney David B. Kent, who prosecuted the case.
15-005Four Men Plead Guilty to the Armed Robbery of Armored Truck EmployeesRead the Press Release
Stole Over $79,000 and Attempted to Murder a Witness Who Called 911
Greenbelt, Maryland – Four men have pleaded guilty to the armed robbery of employees who were transporting money in an armored truck, and to brandishing a firearm during a crime of violence. Antonio Lamar Cooper, age 27, of Washington, D.C.; Maurice Lorenzo Foreman, age 22, of Oxon Hill, Maryland; and Eugene Robert Watkins, age 22, of Washington, D.C., pleaded guilty late yesterday, the day before they were scheduled to go to trial. Co-defendant Juwan Armarni Watkins, age 21, of Washington, D.C. pleaded guilty on December 29, 2014.The guilty pleas were 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; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to their plea agreements and court documents, on January 15, 2014 the defendants drove a stolen vehicle to a restaurant on Allentown Road in Morningside, Maryland. Outside the restaurant, two armored truck employees were transporting money from the restaurant. One of the defendants pointed a gun at an employee’s face, pushed her to the ground, placed his gun on the back of her head and took her gun. Another defendant pointed his gun at the second employee’s head and took his gun as well. The defendants, all or some of whom were wearing masks and brandishing firearms, robbed the employees of $72,106.54 in cash, $4,028.81 in checks, and personal property.
During their escape, a citizen who witnessed the robbery followed the defendants from the scene of the robbery, and called 911 while in pursuit. The defendants realized that the witness was following them and shot at the witness, hitting the windshield and body of the witness’ vehicle several times. During that shooting, the witness was struck in the face by glass and/or bullet fragments.
According to court documents, Prince George’s County Police officers pursued the defendants’ stolen vehicle into Washington, D.C. where the defendants got out of their vehicle and attempted to flee. With the assistance of a canine search initiated by Metropolitan Police officers, the defendants were subsequently arrested.The defendants face a maximum sentence of 20 years in prison for interfering with interstate commerce by robbery; and a mandatory minimum of 10 years in prison, consecutive to any other sentence, and up to life in prison for using a firearm during the robbery. U.S. District Judge George Jarrod Hazel has scheduled sentencing for Cooper on March 16, 2015, at 9:30 a.m., for J. Watkins on March 20, 2015 at 1:30 p.m., for E. Watkins on April 28, 2015, and for Foreman on April 29, 2015, both at 9:30 a.m. All of the defendants remain detained.
United States Attorney Rod J. Rosenstein commended the FBI, Prince George’s County Police Department, Metropolitan Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Daniel C. Gardner, Michael T. Packard and William D. Moomau, who are prosecuting the case.
Fort Myers Man Sentenced on Federal Child Pornography ChargesRead the Press Release
Fort Myers, Florida - United States District Judge John E. Steele has sentenced John J. Hanlon, Jr. (22, Ft. Myers) to seven years in federal prison, followed by ten years of supervised release, for distributing and possessing child pornography. He pleaded guilty to the charges in October 2014.
According to court documents, between June 12, 2013, and July 14, 2013, Hanlon distributed videos depicting child pornography to an undercover FBI task force agent using an Internet peer-to-peer network. A federal search warrant was obtained for Hanlon’s residence and all of his electronic media-related items were seized. Forensic analyses of the seized items revealed more than 800 images and videos depicting child pornography.
This case was investigated by the Federal Bureau of Investigation, Fort Myers Resident Agency. It was prosecuted by Assistant United States Attorney Tama Koss Caldarone.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.projectsafechildhood.gov.
Former Virginia Governor Sentenced to Two Years in Prison for Public Corruption SchemeRead the Press Release
The former Virginia Governor Robert F. McDonnell, 60, of Glen Allen, Virginia, was sentenced today to two years in prison for soliciting and obtaining payments, loans, gifts and other items from Star Scientific, a Virginia-based corporation, and Jonnie R. Williams Sr., Star Scientific’s then chief executive officer, in violation of federal public corruption laws.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge Adam S. Lee of the FBI’s Richmond Field Office, Chief Richard Weber of the Internal Revenue Service – Criminal Investigation (IRS-CI) and Virginia State Police Superintendent Colonel W. Steven Flaherty made the announcement. Senior U.S. District Judge James R. Spencer of the Eastern District of Virginia imposed the sentence.
Robert McDonnell and his wife, Maureen McDonnell, were convicted following a jury trial of one count of conspiracy to commit honest-services wire fraud and one count of conspiracy to obtain property under color of official right. Robert McDonnell was also convicted of three counts of honest-services wire fraud and six counts of obtaining property under color of official right, while Maureen McDonnell was convicted of two counts of honest services wire fraud counts and four counts of obtaining property under color of official right. In total, Robert McDonnell was convicted of 11 of 13 counts and Maureen McDonnell was convicted of eight of 13 counts.
“Robert McDonnell corrupted the most powerful office in Virginia and fractured the public’s trust,” said Assistant Attorney General Caldwell. “Taking bribes in exchange for official actions is not politics as usual – it is an insidious crime that strikes at the heart of public service and will not be tolerated.”
According to the evidence presented at trial, from April 2011 through March 2013, the McDonnells participated in a scheme to use the former governor’s official position to enrich themselves and their family members by soliciting and obtaining payments, loans, gifts and other things of value from Star Scientific and Jonnie R. Williams Sr. The McDonnells obtained these items in exchange for the former governor performing official actions to legitimize, promote and obtain research studies for Star’s products, including the dietary supplement Anatabloc.
According to evidence presented at trial, the McDonnells obtained from Williams more than $170,000 in direct payments as gifts and loans, thousands of dollars in golf outings, and numerous items. As part of the scheme, Robert McDonnell arranged meetings for Williams with Virginia government officials, hosted and attended events at the Governor’s Mansion designed to encourage Virginia university researchers to initiate studies of Star’s products and to promote Star’s products to doctors, contacted other Virginia government officials to encourage Virginia state research universities to initiate studies of Star’s products, and promoted Star’s products and facilitated its relationships with Virginia government officials.
The evidence further showed that the McDonnells attempted to conceal the things of value received from Williams and Star to hide the nature and scope of their dealings with Williams from the citizens of Virginia by, for example, routing gifts and loans through family members and corporate entities controlled by the former governor to avoid annual disclosure requirements.
Maureen McDonnell is scheduled to be sentenced on Feb. 20, 2015.
The case was investigated by the FBI, IRS-CI and the Virginia State Police, and is being prosecuted by Deputy Chief David V. Harbach II of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Michael S. Dry, Jessica D. Aber and Ryan S. Faulconer of the Eastern District of Virginia.