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Saturday 8 November 2014
Attorney General Holder Statement on President Obama's Nomination of U.S. Attorney Loretta Lynch to Serve as Attorney GeneralRead the Press Release
Attorney General Eric Holder released the following statement Saturday on President Obama’s nomination of U.S. Attorney Loretta Lynch to serve as Attorney General:
“Loretta Lynch is an extraordinarily talented attorney, a dedicated public servant, and a leader of considerable experience and consummate skill. I am certain that she will be an outstanding Attorney General, and I am delighted to join President Obama in congratulating her on this prestigious appointment.
“Throughout her career, and especially during her tenure as United States Attorney for the Eastern District of New York – during both the Clinton and Obama Administrations – Loretta has earned the trust and respect of Justice Department employees at every level, in Washington and throughout the country. She is held in high regard by criminal justice, law enforcement, and civil rights leaders of all stripes. And from her time as a career attorney, prosecuting high-profile public corruption cases, to her leadership of sensitive financial fraud and national security investigations, she has proven her unwavering fidelity to the law – and her steadfast dedication to protecting the American people.
“I have had the good fortune of working closely with Loretta on a range of important issues over the years, and particularly since the beginning of 2013, when I asked her to serve as chair of the Attorney General’s Advisory Committee. She and her colleagues have been instrumental in implementing the Smart on Crime initiative. And I know that she is both well-qualified and uniquely positioned to continue the critical work that’s underway and build upon the progress we have made over the past six years, from advancing criminal justice reform to safeguarding civil rights.
“I am confident that Loretta will lead the Department of Justice with integrity, honor, and distinction. I congratulate her, once again, on her appointment. And I wish her the best of luck.”
Friday 7 November 2014
Woodbridge Man Convicted of Fraud to Serve Additional Prison Time for Violating Supervised ReleaseRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN VOLOSHIN, 58, of Woodbridge, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to nine months of imprisonment for violating the terms and conditions of his federal supervised release.
On May 17, 2012, Judge Chatigny sentenced VOLOSHIN to 33 months of imprisonment and three years of supervised release for operating multiple fraud schemes that caused losses of more than $1.5 million to individuals and lenders. As part of the schemes, VOLOSHIN forged signatures and used fabricated bank account statements, tax returns, mortgage releases and loan applications. VOLOSHIN was released from prison on May 16, 2014, and began serving this three-year term of supervised release.
Shortly after his release from prison, in an attempt to gain permission from the U.S. Probation Office to travel to London, VOLOSHIN repeatedly lied to and misled his supervising probation officer by concocting a bogus job for a real estate concern in London. In furtherance of his ruse, VOLOSHIN submitted to the U.S. Probation Office a fake employment letter for a $250,000 job, enlisted the help of another individual to provide verbal and written verification of this fictitious job by posing as VOLOSHIN’s would-be boss, convinced a childhood friend to let him use his credit card to pay for a web hosting service in order to disguise the financial trail tying the payment back to VOLOSHIN, and created three fake websites for his bogus London-based employer, including a website that was pirated from a legitimate real estate firm in London.
VOLOSHIN has been detained since his arrest on September 9, 2014, for supervised release violations.
The matter was brought by the U.S. Probation Office and additional investigation was provided by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney David T. Huang.
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[email protected]Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Deandre Lee Mosley Walker, 18, of South Bend, Indiana pled guilty to the felony offense of attempted arson. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for February 12, 2015. This case is being prosecuted by Assistant United States Attorney Donald Schmid.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Week in Review – HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Michael Dwayne English, 35, of Gary, Indiana pled guilty to the felony offense of being in possession of an unregistered firearm. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for 2/13/2015. This case is being prosecuted by Special Assistant United States Attorney Armando Salinas.
- Emmanuel Mendez, 26, of Hammond, Indiana pled guilty to the felony offense of being a felon in possession of firearms. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for 02/05/2015. This case is being prosecuted by Special Assistant United States Attorney Armando Salinas.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Kelvin B. Walker, 49, of Fort Wayne, Indiana pled guilty to the felony offense of filing a false claim. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Internal Revenue Service, Treasury Inspector General for Tax Administration and the Fort Wayne Police Department. Sentencing will be set by separate order by the district court. This case is being prosecuted by Assistant United States Attorney Lovita Morris King.
- Marvin Bennett, 38, of Fort Wayne, Indiana pled guilty to the felony offense of being a felon in possession of a firearm. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. Sentencing will be set by separate order by the district court. This case is being prosecuted by Assistant United States Attorney Lovita Morris King.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Alejandro V. Luna, 31, of Fort Wayne, Indiana was sentenced to 151 months imprisonment with 5 years supervised release after pleading guilty to the felony offense of knowingly conspiring to distribute and possess with intent to distribute cocaine. According to documents filed in the case, this investigation began with controlled buys of powder and crack cocaine and progressed with wiretaps of several cocaine suppliers. Luna was identified as a distributor of one of the conspiracies. This case was the result of an investigation by the Federal Bureau of Investigation, Fort Wayne Safe Streets Task Force, Indiana State Police, Fort Wayne Police Department, Allen County Police Department, Allen County Drug Task Force and the New Haven Police Department. This case was prosecuted by Assistant United States Attorney Anthony W. Geller.
- Efren Paniagua-Pizano, 36, of Fort Wayne, Indiana was sentenced to time served without any supervised release period after pleading guilty to the felony offense of conspiracy to distribute and possession with intent to distribute cocaine. According to documents filed in this case, between July 2011 and February 2013 Paniagua-Pizano was involved in a large scale narcotics distribution conspiracy operating in Northwestern Indiana and Southern lower Michigan. Through the use of wiretaps, it was discovered that Paniagua-Pizano was involved in distributing and facilitating the distribution of quantities of cocaine to individuals. This case was the result of an investigation by the Federal Bureau of Investigation, FBI Fort Wayne Safe Streets Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Fort Wayne Safe Streets Task Force is comprised of FBI agents and officers from the Indiana State Police, Allen County Police Department, and Fort Wayne Police Department. The New Haven Police Department, Steuben County Sheriff's Department, Elkhart County Interdiction and Covert Enforcement Unit, South Bend Police Department, and IMAGE Drug Task Force assisted with this investigation. This case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
TRIAL
- Antonio Burgos Sr., of Fort Wayne, was found guilty by a jury on each of three counts charging violations of 18 U.S.C. 514. Burgos was charged with passing and mailing interstate, fraudulent and fictitious checks purported to be written off an account at the Federal Reserve Bank of Richmond, Virginia. Burgos presented one of the fictitious checks for $10,000 at a local banking institution when he opened a checking account in March 2011. Also in March 2011, Burgos mailed from Fort Wayne Indiana to Chicago Illinois two more fictitious checks in the amounts of $20,000 and $40,000 respectively, one of which was deposited into an Illinois bank and was returned to the bank unpaid. At trial, a representative from the Federal Reserve Bank testified that the Federal Reserve does not maintain accounts for individuals. The case was the result of an investigation by the Federal Bureau of Investigation and the case was prosecuted by Assistant United States Attorney Tina L. Nommay. Sentencing will be set by separate order by the district court.
Any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Washington, D.C. Man Convicted of Failure to Update Sex Offender RegistrationRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Celot Jay Carr, Jr., 38, of Washington, D.C., was convicted today of failure to update his sex offender registration after relocating to West Virginia, United States Attorney William J. Ihlenfeld, II, announced today.
In December 2006, Carr was convicted of “Second Degree Child Abuse” in the District of Columbia Superior Court for engaging in sexual activity with a minor. As a result, Carr is required to register as a sex offender. Upon his release, Carr registered with the District of Columbia Sex Offender Registry. Carr failed to update his sex offender registration when he subsequently relocated from Washington D.C. to Westover, West Virginia in January 2013.
Carr pled guilty today to one count of “Failure to Update Sex Offender Registration” after a U.S Marshals Service and West Virginia State Police investigation. He faces up to 10 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 defendant.
Assistant U.S. Attorney Shawn Morgan is prosecuting the case on behalf of the government.
U.S. Magistrate Judge John S. Kaull presided.
Virginia Resident Indicted in Connection with Fraudulent Lottery Scheme Based in JamaicaRead the Press Release
A grand jury in U.S. District Court for the Western District of Virginia returned an indictment yesterday charging a Jamaican citizen who was residing in Virginia in connection with the operation of a fraudulent lottery scheme, the Department of Justice and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) announced.
Carlos O’Brian Ricketts, 31, was arrested Nov. 4 on a criminal complaint based on his participation in the lottery scheme. The indictment announced today supersedes the charge in the criminal complaint against Ricketts. Ricketts is charged with conspiracy to commit mail fraud and wire fraud, four counts of mail fraud, three counts of wire fraud, conspiracy to commit money laundering and 18 counts of money laundering. If convicted, Ricketts faces a statutory maximum sentence of 20 years in prison for each count.
As alleged in the indictment, a co-conspirator induced elderly victims in the United States to send thousands of dollars to Ricketts to cover fees for purported lottery winnings that in fact victims had not won. The indictment is part of the government’s crackdown on fraudulent lottery schemes based in Jamaica that target elderly victims in the United States.
“Co-conspirators in the United States are often key players in lottery schemes operating from foreign countries,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “The Department of Justice will continue to prosecute those who facilitate these pernicious schemes.”
From May 2010, Ricketts’ co-conspirator is alleged to have contacted elderly victims in the United States, claimed to represent a known U.S. sweepstakes company and falsely informed the victims that they had won thousands or millions of dollars in a lottery. The co-conspirator allegedly told the victims to make payments of several thousand dollars in order to collect their purported prize winnings and instructed the victims to send and wire this money to Ricketts in Virginia.
The indictment charges that Ricketts received this money, kept a portion of the money for himself and sent the remainder to individuals in Jamaica. According to the indictment, Ricketts sometimes sent the victims’ money to Jamaica in smaller, separate payments to the same person in Jamaica during a short period of time. The indictment also alleges that Ricketts sometimes used the alias Kevin Brown when receiving money from victims and sending money to Jamaica. The indictment further alleges that Ricketts used different addresses to conceal his identity. The victims never received any lottery winnings.
“Participants in international lottery frauds cannot seek shelter in the Western District of Virginia,” said U.S. Attorney Timothy J. Heaphy for the Western District of Virginia. “We will bring those responsible to justice.”
“HSI has disrupted multiple lottery scams across the globe,” said Special Agent in Charge Clark E. Settles of HSI Washington, D.C., which oversees the agency’s Harrisonburg office. “The indictment of this individual marks yet another step against alleged con-artists who prey on elderly U.S. citizens.”
Acting Assistant Attorney General Branda and U.S. Attorney Heaphy commended HSI’s investigative efforts. The case is being prosecuted by Trial Attorney Kathryn Drenning with the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Grayson Hoffman of the Western District of Virginia.
A criminal complaint and an indictment are merely allegations and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Undocumented Alien from Honduras, Selvin Irias-murillo, Charged with Illegal Reentry into the United States After Four Previous DeportationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that SELVIN IRIAS-MURILLO, age 44, from Honduras, was charged today in a one-count indictment with illegal reentry into the United States after having been previously deported, in violation of 8 U.S.C. '1326(a).
According to the indictment, IRIAS-MURILLO was found by Immigrations and Customs Enforcement agents in the Eastern District of Louisiana after records showed he had been deported on four prior occasions from the United States to Honduras.
If convicted, IRIAS-MURILLO faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of Immigration and Customs Enforcement agents in investigating this matter. Assistant U. S. Attorney Rick Veters is in charge of the prosecution.
(Download Indictment )
U.S. Citizen Pleads Guilty to Traveling to Thailand to Engage in Sexually Explicit Conduct with MinorsRead the Press Release
A U.S. citizen residing in Thailand pleaded guilty today to one count of sexually exploiting a minor before U.S. Magistrate Judge Richard L. Puglisi of the District of Hawaii.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Florence T. Nakakuni of the District of Hawaii made the announcement.
Ronny Lee Waldrip, 63, traveled to Honolulu, Hawaii on Feb. 13, 2012. Upon his arrival in Honolulu, law enforcement discovered Waldrip brought a laptop computer that contained photos and videos depicting minors engaged in sexually explicit conduct, including videos of Waldrip engaging in sexually explicit conduct with minor females. According to admissions in his plea agreement, from May 2010 through October 2011, Waldrip used a hidden camera to record his sexually explicit conduct with minor females in Thailand. The minor victims named in the indictment were 14 and 15 years old at the time of the abuse. Waldrip will be sentenced on May 7, 2015, by Senior U.S. District Judge Helen Gillmor.
This case was investigated by Immigration and Customs Enforcement’s Homeland Security Investigations. This case is being prosecuted by Trial Attorneys Sarah Chang and Michael Grant of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Ronald G. Johnson of the District of Hawaii, with help from the Criminal Division’s Office of International Affairs.
U.S. Citizen Pleads Guilty to Traveling to Thailand to Engage in Sexually Explicit Conduct with MinorsRead the Press Release
WASHINGTON – A U.S. citizen residing in Thailand pleaded guilty today to one count of sexually exploiting a minor before U.S. Magistrate Judge Richard L. Puglisi of the District of Hawaii.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Florence T. Nakakuni of the District of Hawaii made the announcement.
Ronny Lee Waldrip, 63, traveled to Honolulu, Hawaii on Feb. 13, 2012. Upon his arrival in Honolulu, law enforcement discovered Waldrip brought a laptop computer that contained photos and videos depicting minors engaged in sexually explicit conduct, including videos of Waldrip engaging in sexually explicit conduct with minor females. According to admissions in his plea agreement, from May 2010 through October 2011, Waldrip used a hidden camera to record his sexually explicit conduct with minor females in Thailand. The minor victims named in the indictment were 14 and 15 years old at the time of the abuse. Waldrip will be sentenced on May 7, 2015, by Senior District Judge Helen Gillmor.
This case was investigated by Immigration and Customs Enforcement’s Homeland Security Investigations. This case is being prosecuted by Trial Attorneys Sarah Chang and Michael Grant of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Ronald G. Johnson of the District of Hawaii, with help from the Criminal Division’s Office of International Affairs.
U.S. Attorney Staff Visit Overton Brooks Medical Center in Observance of Veterans DayRead the Press Release
SHREVEPORT, La.–United States Attorney Stephanie A. Finley and five staff members, Aaron Broussard, U.S. Army; Robert Gillespie, U.S. Army; Samuel Glass, U.S. Air Force; Vincent Mangum, U.S. Army; and Mike O’Mara, U.S. Air Force visited the Overton Brooks Veterans Affairs Medical Center today to honor veterans and remember their service. Finley also took a tour of the Overton Brooks VA facilities with Interim Director Toby Mathew and his staff.
Overton Brooks hosted a series of events from 11 a.m. until 2 p.m. today which included a Veterans of Foreign Wars Poker Run, Combined Federal Campaign Armed Forces T-shirt sale, U.S. Marine cake cutting ceremony, Barksdale 8th U.S. Air Force Top 3 burger burn, visit from the Shreveport-Bossier Mavericks basketball team, and a dedication of three memorial benches from Hillcrest Funeral Home and the Overton Brooks student volunteers class of 2014.
“It’s an honor to participate and visit the Overton Brooks facility,” Finley stated. “I hope everyone takes a little time this weekend and next week to remember and thank veterans for their service. We owe a debt of gratitude to all of the men and women who serve and have served our nation and safeguarded our freedoms.”
Overton Brooks serves more than 37,000 Veterans per year. The hospital is accredited for 111 inpatient beds and provides more than 462,000 outpatient visits per year. The medical center has an active accredited research program and is one of the regional sites for Veterans Integrated Service Network 16 Hematology/Oncology Center. The medical center manages three Community-Based Outpatient Clinics in Monroe; Longview, Texas; and Texarkana, Ark. For more information, visit www.shreveport.va.gov.
Two Men Indicted by Grand Jury for Violations of the Federal Controlled Substances ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that HERBERT COOPER, age 41, and RICHARD WILLIAMS, age 38, both residents of New Orleans, Louisiana, were charged today in a three-count indictment for violations of the Federal Controlled Substances Act. According to the indictment, on October 24, 2014, COOPER and WILLIAMS conspired to distribute and to possess with the intent to distribute over 28 grams of crack cocaine, in violation of Title 21, United States Code, Section 846. WILLIAMS was also charged with distributing at least 28 grams of cocaine base, in violation of Title 21, United States Code, Sections 841(a)(1), and 841(b)(1)(B). Additionally, COOPER was charged with possessing with the intent to distribute at least 28 grams of cocaine base, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).
If convicted, COOPER and WILLIAMS each face a maximum term of 40 years imprisonment as to each count, a fine of up to $5,000,000, a period of four years of supervised release following any term of imprisonment, and a special assessment of $100.00.
U.S. Attorney Polite reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration, with assistance from the New Orleans Polite Department in investigating this matter. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
(Download Indictment )
Two Maryland Men Sentenced for Roles in 2013 String of Armed Bank RobberiesRead the Press Release
ALEXANDRIA, Va. – Alphonso Stoddard, 59, of Forest Heights, Maryland, and James McNeal, 63, of Hyattsville, Maryland, were sentenced today to life in prison and 15 years in prison, respectively, for conspiracy to commit bank robbery, armed bank robbery and brandishing a firearm during a crime of violence.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and M. Douglas Scott, Arlington County Chief of Police, made the announcement after the sentencing by U.S. District Judge T.S. Ellis, III.
“These men were seasoned thieves who had been robbing banks for many years,” said U.S. Attorney Boente. “In committing these crimes they endangered the lives of many Virginians and law enforcement officers. The sentences delivered today reflect the seriousness of these crimes, and the commitment of this office and our law enforcement partners to protecting our communities by prosecuting violent criminals.”
“Armed bank robberies have a high propensity for violence because the weapons violent criminals bring with them puts bank tellers at risk and the public in danger,” said Assistant Director McCabe. “Today’s sentence demonstrates that the collaborative work by law enforcement in Maryland, Virginia and D.C. allowed investigators to trace these bank robbers to crimes committed throughout our region. The FBI, through our Violent Crime Task Force, will continue to track down bank and armed robbery crews in order to keep our community free from violence.”Stoddard, who received mandatory life in prison without parole due to prior convictions for armed bank robberies, was convicted by a federal jury on Aug. 8, 2014, of charges involving three separate bank robberies. McNeal was also convicted by a federal jury on Aug. 8, 2014, for his involvement in one bank robbery, and was sentenced to 184 months in prison and five years of supervised release. Another co-defendant, James Link, 57, of Washington, D.C., pleaded guilty on March 20, 2014, and was sentenced to 35 years in prison and five years of supervised release on Sept. 19, 2014.
According to court records and evidence at trial, the FBI identified Link, McNeal and Stoddard as possible suspects in a string of bank robberies in late 2013 and kept the men under close surveillance. On Dec. 27, 2013, Link, McNeal and Stoddard were followed by law enforcement agents as they cased two banks in Arlington, Virginia. One of the banks the defendants were seen casing was a Wells Fargo branch on South George Mason Drive.
On Dec. 31, 2013, McNeal left his residence in Hyattsville and picked up Link and Stoddard before returning to the Wells Fargo branch in Arlington. At approximately 1:15 p.m., Stoddard and Link entered the bank. Inside the bank, Link brandished a firearm while Stoddard removed approximately $47,000 in cash from teller drawers. The two men exited the bank and returned to the vehicle where McNeal was waiting. The FBI and Arlington County police officers arrested the defendants approximately one block away from the Wells Fargo branch. A handgun and cash were found in the vehicle.
A search of McNeal’s house led to the discovery of an additional firearm believed to be used in earlier bank robberies, cash and gloves. Stoddard admitted to his involvement in armed robberies at a Wells Fargo in Rockville, Maryland, on Oct. 29, 2013, and the Bank of Georgetown in Vienna, Virginia, on Oct. 30, 2013. Link admitted he was involved in the Bank of Georgetown robbery and an armed robbery at a Wells Fargo in Arlington on Nov. 25, 2013.
The investigation was conducted by the FBI’s Washington Field Office, with assistance from FBI’s Baltimore Division and the Arlington County and Fairfax County police departments. The U.S. Attorney’s Offices for the District of Columbia and the District of Maryland also provided assistance in the investigation. Special Assistant U.S. Attorney Jennifer A. Clarke is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-76.Troy Man Pleads Guilty to Distribution of Child PornographyRead the Press Release
ALBANY, NEW YORK – On November 4, 2014, JAMES J. McGONIGLE, age 42, of Troy, New York, pled guilty in Albany before United States District Judge Mae A. D’Agostino to distribution and possession of child pornography, announced United States Attorney Richard S. Hartunian and Homeland Security Investigations Assistant Special Agent in Charge Nicholas DiNicola. McGONIGLE, who was detained pending his sentencing, faces at least five years of imprisonment and up to 40 years of imprisonment.
As part of his guilty plea, McGONIGLE admitted that he distributed videos of child pornography by e-mail. On March 11, 2014, investigators executed a federal search warrant at McGONIGLE’S residence in Troy, New York, and recovered 364 still images and 50 videos depicting child pornography from his smartphone. Sentencing is scheduled for March 4, 2015 at 12:30 p.m. in Albany, New York.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations, with the assistance of the Colonie Police Department and the Rensselaer County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
Travelers Rest Man Receives 151 Months for Possession of Child PornRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Walter T. Alexander, age 31, of Travelers Rest, South Carolina, was sentenced yesterday to 151 months imprisonment and placed on life-time supervised release for possession of child pornography. United States District Judge Timothy M. Cain presided over the case.
Evidence presented at the change of plea hearing established that law enforcement began an investigation of Alexander after learning that an e-mail address associated with him had uploaded an image file containing child porn. The file was uploaded on October 10, 2012. A state law enforcement officer reviewed the upload and concluded that it did indeed contain child porn. Further investigation traced the IP address connected to the e-mail account to Alexander’s residence.
On April 22, 2013, law enforcement executed a search warrant on Alexander’s residence. They seized his computer and conducted a forensic examination of it. Approximately 90 child porn videos and 170 still images were found-- that is, images and videos of minors under the age of 18 engaged in sexually explicit conduct and the lascivious display of the genitals. Some of the minors had not attained the age of 12 and were prepubescent. Law enforcement also discovered requests Alexander had made via the internet for women with small children to contact him for sexual activity.
The case was investigated by agents of the Department of Homeland Security, Office of Investigations, and the State Law Enforcement Division. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, 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 identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.Topeka Massage Parlor Operators Sentenced for Sex TraffickingRead the Press Release
TOPEKA, KAN. - A man and a woman who operated massage parlors in Topeka were sentenced in federal court here Friday for running a prostitution business, U.S. Attorney Barry Grissom.
Yong Jin Zhang, 56, Topeka, Kan., and Yu Lan Su, 50, Topeka, Kan., was sentenced to time served and a year on supervised release. They were arrested
Zhang and Su pleaded guilty to one count of transporting women in interstate commerce for the purpose of prostitution. In his plea, Zhang admitted the crime occurred while he and Su were operating Life Long Foot Massage at 5620 SW 29th Street in Topeka and JJ’s Massage at 1107 SW Gage in Topeka. Working undercover, a detective with the Topeka Police Department posed as a customer and arranged for an Asian female employee of Life Long Foot Massage to perform a sexual act. The employee was a citizen of China who was in the United States unlawfully. The defendants were aware employees were performing sex acts with customers.
Grissom commended the Topeka Police Department, Homeland Security Investigations and Assistant U.S. Attorney Randy Hendershot for their work on the case.Three Sentenced for Role in Armed Bank RobberyRead the Press Release
ROANOKE, VIRGINIA – Three individuals who were previously convicted of robbing Carter Bank and Trust in Ararat, Virginia, were sentenced this afternoon in the United States District Court for the Western District of Virginia in Roanoke.
Devin Montae Robinson, 23, of Kernersville, North Carolina, Jamel Clifton Allen, 37, of Holly Hill, South Carolina and Whitney Nicole Ceasar, 20, of Mount Airy, North Carolina, were previously convicted of charges related to the August 2, 2013 armed robbery of the Carter Bank and Trust on Ararat Highway in Ararat, Va. Specifically, Robinson and Allen pleaded guilty to armed bank robbery and use of a firearm in relation to a crime of violence and Ceasar pleaded guilty to bank robbery. Today in District Court, Robinson was sentenced to 120 months of federal incarceration. Allen was sentenced to 240 months of federal incarceration, and Ceasar was sentenced to 30 months of federal incarceration.
“These three defendants were just punished today for their brazen and dangerous bank robbery,” United States Attorney Timothy J. Heaphy said today. “We will continue to prioritize violent crimes involving firearms, as these acts have the potential for extreme danger to victims.”
According to evidence presented at previous hearings by Assistant United States Attorney Daniel Bubar, on August 2, 2013, Allen and Robinson drove to Carter Bank and Trust in Ararat, armed with handguns, for the purpose of robbing the bank. Just after 9:30 a.m. on August 2, 2013, Robinson, while wearing a mask and carrying a firearm, entered Carter Bank and Trust, threatened an employee, brandished the firearm, and through intimidation did steal $7,370.
While Robinson was robbing the bank, Allen was waiting for him in a car outside the bank. When Robinson exited the bank, Allen drove the two of them away from the bank. While Allen and Robinson fled the bank after the robbery, bystanders who had observed the robbery followed Allen and Robinson in their own car and took pictures of the robbers’ car and recorded the license plate number. Robinson fired at least two shots from his handgun back toward the eyewitnesses’ vehicle to scare them off. The bystanders stopped following and called 911.
Robinson and Allen then met Cesar, Robinson’s girlfriend at the time, at a pre-determined location and entered a second getaway vehicle that Cesar drove to further assist Robinson and Allen in fleeing the bank robbery. Ceasar drove Robinson and Allen to another location in North Carolina. Through details given by various eyewitnesses, law enforcement officials were able to locate the vehicles used in the robbery and eventually located the suspects.
The investigation of the case was conducted by the Federal Bureau of Investigation, the Patrick County Sheriff’s Office, the Winston-Salem Police Department, the Virginia State Police and the Surry County Sheriff’s Office. Assistant United States Attorney Daniel Bubar and Special Assistant Steven Bans prosecuted the case for the United States.
Three District Men Sentenced to Decades in PrisonRead the Press Release
For Shootings That Left 13 People Wounded
On North Capitol Street
Shots Fired From Two Cars in Drive-By Shootings;
Violence Followed Incident at NightclubWASHINGTON – Three men, all from Washington, D.C., were sentenced today to prison terms for their roles in a drive-by shooting on North Capitol Street early March 11, 2013, that injured a total of 13 people, announced U.S. Attorney Ronald C. Machen Jr. and Cathy L. Lanier, Chief of the Metropolitan Police Department.
Andrew D. Allen, 20, Keith D. Bobb, 22, and Arnell L. Smith, 21, pled guilty on July 3, 2014, in the Superior Court of the District of Columbia, to 13 counts of assault with intent to kill and one count each of conspiracy to commit a crime of violence, possession of a firearm during a crime of violence and tampering with physical evidence. Their plea agreements, which were contingent upon the Court’s approval, called for Allen to be sentenced to 25 years of incarceration and for Bobb and Smith each to be sentenced to 20 years in prison.
The Honorable John Ramsey Johnson accepted the plea agreements today and sentenced the defendants accordingly: Allen, to 25 years, and Bobb and Smith, to 20 years each. Upon completion of their prison terms, the men will be placed on three years of supervised release.
“These three men will spend decades behind bars for the terror and chaos they unleashed on North Capitol Street,” said U.S. Attorney Machen. “They left behind 13 victims when they sprayed gunfire into a crowd of innocent people. These prison sentences are a reminder that purveyors of violence and mayhem will be punished harshly.”
“This was a senseless act of violence perpetuated by rival crews,” said Police Chief Lanier. “It is our hope that the sentencing today of these criminals will bring some comfort and closure to the numerous victims who were injured.”
According to the government’s evidence, the violence stemmed from a longstanding conflict between rival groups. The defendants, who had ties to a Northeast Washington neighborhood, were engaged in disputes with a group of individuals associated with the Sursum Corda neighborhood near where the shootings occurred, and also with the area near 10th and G Streets NE. Over the years, various violent crimes between members of the two groups were committed. Specifically, soon before the shootings, a dispute took place at the Fur Nightclub.
Allen, Smith, and other individuals were among those at the nightclub late March 10, 2013 and early March 11, 2013, when the dispute took place. Afterward, Allen, Smith, and a third individual met with Bobb and, armed, they traveled in two cars to the Sursum Corda neighborhood in search of retaliation. A fifth individual, not responsible for the shootings, also was in one of the cars.
Shortly after 2 a.m., driving in caravan-style, one car behind the other, they traveled to the 1200 block of North Capitol Street NW, near the Tyler House Apartments, adjacent to the Sursum Corda neighborhood. Smith drove one car, Allen’s black 1999 Mercedes Benz, and Allen fired a Taurus 9 mm semi-automatic pistol, with an extended magazine, from the front passenger seat of the vehicle. Bobb drove the other car, a light blue 1999 Mercedes Benz, close behind Smith and Allen, and his passenger likewise opened fire, using a Glock 9 mm semi-automatic pistol, which also had an extended magazine.
After Allen began to shoot, some individuals, using .40-caliber semi-automatic firearms, shot back at the two cars. The defendants fled the area at a high rate of speed, turning right on H Street NW and running a red light. Red light cameras at the intersection of North Capitol and H Streets NW photographed the license tags of both cars.
The victims included seven men and six women, ranging in age from their late teens to their 30s. One man was shot in the abdomen and back and required multiple surgeries. One woman was shot multiple times in the left side of her body. Another man suffered a graze wound to the chest. Others were shot in the legs, thighs, buttocks and feet.On the afternoon of March 11, 2013, Allen grew concerned and agitated about televised news accounts of the shootings. The newscasts had footage from the crime scene in which Allen could recognize his car. He decided that he needed to “torch” his vehicle, which had been damaged by gunfire, because it could be identified by law enforcement. He and other defendants headed to the 3000 block of Stanton Road SE, where the vehicle was set on fire to devalue or destroy it as evidence. Following a series of 9-1-1 calls reporting the blaze, District of Columbia emergency personnel responded to the burning car. The remains of the car were seized by law enforcement, and evidence was recovered that later tied the vehicle to Allen’s family.
In the late afternoon of March 11, 2013, after the car had been destroyed, Allen, Bobb, and Smith resolved to get rid of the guns used in the shootings on North Capitol Street. The three received a ride to an apartment complex in Northeast Washington, D.C. There, Allen and Bobb met with another individual and traded away the Taurus and Glock pistols used in the North Capitol Street shootings in return for two Ruger semi-automatic pistols.
The defendants have been in custody since their arrests. Bobb and Allen were arrested on May 23, 2013. An arrest warrant also was issued for Smith at that time, but he was in custody to another jurisdiction and was not moved to the District of Columbia until early this year.
In announcing the sentences, U.S. Attorney Machen and Chief Lanier commended the work of the detectives, mobile crime scene officers, intelligence officers, and others who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Christopher Brophy, Tommy Miller, Derek Starliper, Durand Odom, Steve Cohen, Melissa Matthews, Mark Crawford, John Marsh, Nelson Rhone, Juan Juarez, and Matthew Kutz, all of the Criminal Investigation Unit; Jelahn Stewart, Michael Hailey, Wanda Queen, Jennifer Clark, and James Brennan, all of the Victim Witness Assistance Unit; former Victim/Witness Advocate Kristina Rose, and Paralegal Specialist Debra Joyner. They also commended the work of Assistant U.S. Attorneys Kevin Flynn and Jocelyn Ballantine, and former Assistant U.S. Attorneys Thomas A. Bednar and James E. Smith, who assisted in the investigation.
Finally, they commended the work of Assistant U.S. Attorney Michael Brittin, who prosecuted the case.
14-249
Three Colorado Springs Residents Convicted of Conspiracy to Defraud the IRS and Related Tax Charges Following Jury TrialRead the Press Release
DENVER – George Brokaw, age 68, John Pawelski, age 66, and Mimi Vigil, age 63, all from Colorado Springs, Colorado, were found guilty today of conspiracy to defraud the IRS and related tax charges, following a 4-day jury trial before U.S. District Court Judge Christine M. Arguello. The jury deliberated for an hour and a half before reaching their verdicts. Brokaw, Pawelski and Vigil are scheduled to be sentenced by Judge Arguello on January 25, 2015. Following the guilty verdicts the three defendants, who were free on bond, were taken to U.S. Magistrate Judge Kathleen M. Tafoya’s courtroom for a detention hearing. Magistrate Judge Tafoya changed the conditions of their bond to include GPS monitoring confined to Colorado Springs as well as a curfew from 9:00 p.m. to 6:00 a.m.
All three defendants were indicted by a federal grand jury in Denver on May 22, 2013, which was followed by a superseding indictment on October 21, 2013. According to the superseding indictment, and evidence presented at trial, beginning in October 2008, and continuing through May 2009, Brokaw, Pawelski, Vigil, and others conspired with each other to defraud the United States by submitting false claims for income tax refunds to the Internal Revenue Service.The three filed or caused to be filed false, fictitious and fraudulent Form 1040 tax returns containing false claims for refunds in their names. A total of twelve fraudulent returns were filed attempting to receive over twenty-four million dollars in fraudulent refunds. In connection with these false tax returns they submitted or caused to be submitted false Forms 1099-OID. The 1099-OID forms falsely reported that financial institutions, lenders, or other entities had withheld and paid over to the IRS interest income from accounts which did not generate such interest income and from which no such withholdings were made. The Form 1040 tax returns claimed false refunds based on these false claims of withholdings.
Furthermore, from March 2008 and continuing through April 2012, the defendants willfully conspired with each other to obstruct and impede the due administration of the Internal Revenue laws by attempting to thwart the legitimate collection of taxes owed to the IRS by them and others. They caused to be filed or submitted to the IRS a variety of false, fraudulent, or illegitimate documents which purported to constitute payments of taxes owed to the IRS as well as purported electronic funds transfer (EFT) drawn on closed bank accounts. In addition, the defendants filed a variety of false and fraudulent liens or other documents which falsely claimed that IRS employees, who were engaged in legitimate tax collection efforts against one or more of the defendants, owed one or more of the defendants amounts of money ranging from tens of millions of dollars to billions of dollars.
All three defendants face statutory maximum sentences ranging from not more than 3 years to not more than 10 years, plus up to a $250,000 fine, per count of conviction.
“Defendants sought to hide their disregard for the Constitution and our system of laws behind an inky cloud of fraudulent and sometimes farcical ‘legal’ claims,” said U.S. Attorney John Walsh. “The jury, after hearing all the evidence and argument, saw through Defendants’ continuing scheme and convicted them of fraudulently attempting to obtain millions of dollars from the United States.”
“This verdict of guilty on all counts sends a clear message when you participate in a fraudulent tax scheme attempting to receive millions of dollars in fraudulent refunds, you will be found guilty,” said Stephen Boyd, Special Agent in Charge for IRS Criminal Investigation, Denver Field Office. “On the front end, IRS did an outstanding job safeguarding U.S. tax dollars by preventing any fraudulent refunds from being issued to these individuals.”
“We are happy that the jury held the defendants accountable for their repeated efforts to interfere with and harass legitimate tax collection efforts by hard working IRS employees,” said Preston Lamb, Special Agent in Charge of the Treasury Inspector General for Tax Administration (TIGTA).
This case was investigated by Internal Revenue Service – Criminal Investigation (IRS CI), and Treasury Inspector General for Tax Administration (TIGTA). The case is being prosecuted by Assistant U.S. Attorneys Mathew Kirsch and Martha Paluch.
Tahlequah Woman Pleads Guilty to Interstate Travel in Aid of Racketeering EnterpriseRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that AMANDA DAWN COOKSON, age 27, of Tahlequah, Oklahoma pled guilty to Interstate Travel or Transportation in Aid of Racketeering Enterprises, in violation of Title 18, United States Code, Section 1952(a)(3).
Charges are a result of an investigation by the Oklahoma Bureau of Narcotics and was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led, and coordinated by, the Office of the United States Attorney. The defendant was indicted in July, 2014.
The Indictment alleged that beginning on or about April 22, 2012, the defendant, traveled in interstate commerce from the State of Oklahoma to Little Rock, Arkansas, and purchased Oxycodone from Walgreens Pharmacy with a false prescription with the intent to promote, manage, establish, carry on and facilitate the promotion, management, establishment and carrying on of an unlawful activity, that is, a business enterprise involving narcotics or controlled substances in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(C), and thereafter performed or attempted to perform an act to promote, manage, establish and carry on, and to facilitate the promotion, management, establishment and carrying on, of such unlawful activity.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is not more than 5 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorney Shannon Henson represented the United States.
Statement by Department of Justice Regarding Albuquerque City Council VoteRead the Press Release
ALBUQUERQUE – The Department of Justice commends the Albuquerque City Council for its historic vote unanimously endorsing the settlement agreement on use of force by the Albuquerque Police Department. Yesterday’s vote affirmed the Council’s partnership in pursuing sustainable reforms that will ensure constitutional and effective policing, promote greater trust between officers and the communities they serve, and protect officer and public safety. The Department looks forward to filing the settlement agreement in court and starting these essential reforms.
Statement by Department of Justice Regarding Albuquerque City Council VoteRead the Press Release
ALBUQUERQUE – The Department of Justice commends the Albuquerque City Council for its historic vote unanimously endorsing the settlement agreement on use of force by the Albuquerque Police Department. Yesterday’s vote affirmed the Council’s partnership in pursuing sustainable reforms that will ensure constitutional and effective policing, promote greater trust between officers and the communities they serve, and protect officer and public safety. The Department looks forward to filing the settlement agreement in court and starting these essential reforms.
Senate Passes Five-Year Reauthorization for the U.S. Parole CommissionRead the Press Release
WASHINGTON, DC – The Chairman of the United States Parole Commission, Isaac Fulwood announced today the passage of a bill to reauthorize the U.S. Parole Commission (USPC) for five years, which took effect November 1, 2013. Fulwood expressed his pleasure regarding the term of the authorization; a five-year reauthorization rather than the several previous two-year reauthorizations. This extended term will permit the Commission to provide greater certainty and consistency to perform its many functions concerning D.C. Code felons and federal offenders. Currently the USPC has jurisdiction over more than 17,800 D.C. Code felons and approximately 3500 federal offenders, despite the abolishment of federal parole in 1987.
Chairman Fulwood expressed gratitude to Congresswoman Eleanor Holmes Norton (D-DC), who strongly supported the agency’s re-authorization. “Providing the Parole Commission with a five-year extension eliminates the concern of job stability among staff. With job stability comes more focus on productivity and quality work—which continues to fulfill the mission of the USPC.” Congresswoman Norton worked closely with the House and Senate Judiciary committees on the bill because of the USPC’s responsibility for D.C. Code felons.
“I am pleased that we were able to get a somewhat longer reauthorization,” said Norton. “However, considering that the USPC now has continuing responsibilities for D.C. Code felons and certain federal offenders, it is important to stabilize this important public safety agency with the same permanent authorization as other federal law enforcement agencies. . .The reauthorization gives the Commission the longer-term stability it needs to continue to succeed and improve in the future.”
Chairman Fulwood joins Congresswoman Norton in her appreciation of the work of Senate Judiciary Committee Chair Patrick Leahy (D-VT), House Judiciary Committee Chair Bob Goodlatte (R-VA), Ranking Member John Conyers (D-MI), Subcommittee on Crime, Terrorism, and Homeland Security Chair Jim Sensenbrenner (R-WI) and Ranking Member Bobby Scott (D-VA), for their work on getting the bill passed in the Senate and the House last month.
Self-Described Investment Fund Manager Sentenced to 57 Months’ Imprisonment in $5 Million Fraud SchemeRead the Press Release
Earlier today, Thomas Bannon, the president of Overseas Investors LLC and Overseas Investors International, Ltd. (collectively, “Overseas Investors”), was sentenced in federal court in Brooklyn, New York to 57 months’ imprisonment and ordered to pay $5,001,949 in restitution. In June 2014, Bannon had pleaded guilty to wire fraud for defrauding an individual entrepreneur of $5 million through, among other things, false representations about his access to hedge funds and wealthy investors. Co-defendant Theodore Sweeten pleaded guilty in June 2013 to wire fraud and was sentenced to 48 months in prison in January 2014. Co-defendant Robert Bardey was convicted by a federal jury on all counts, including wire fraud and perjury, on October 28, 2014, and is scheduled to be sentenced on February 11, 2015.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“Thomas Bannon claimed to have access to the wealthy and their millions of dollars. In reality, Bannon’s only access was to other fraudsters and phony bank documents which he used to perpetrate this audacious fraud on an unsuspecting investor. We hope that this conviction and sentence serve as a warning to others engaged in such fraudulent conduct that they will be held accountable and face imprisonment for their actions,” stated United States Attorney Lynch. Ms. Lynch expressed her appreciation to the FBI, the agency responsible for the investigation.
Bannon falsely represented to the victim that Overseas Investors collaborated with hedge funds and wealthy investors who were willing, in exchange for a substantial fee, to “lease” funds and set up bank accounts in its clients’ names that contained the leased funds. Based on this and other misrepresentations, Bannon and his co-conspirators induced the victim to invest $5 million in order to “lease” a credit line of $100 million, which in turn would enable them to generate millions of dollars in profit through special investment programs. In furtherance of that scheme, Bannon and his co-conspirators falsely represented that the victim’s funds would be held in an attorney escrow account pending confirmation of the posting of $100 million in the leased-funds account. In fact, Bannon and his co-conspirators simply distributed the victim’s $5 million among themselves and falsely represented that a $100 million account had been created at HSBC by sending the victim fabricated bank documents on HSBC letterhead.
When the victim discovered that the bank documents on HSBC letterhead were phony, he requested a refund of the $5 million that he had deposited into the attorney escrow account. In response, Bannon and his co-conspirators told the victim that the money had been disbursed to the investors who created the $100 million account. In particular, Bannon concealed from the victim the fact that he had requested and received $600,000 of the escrowed funds prior to the issuance of the fabricated HSBC documents.
The sentence was imposed by United States District Judge Nicholas G. Garaufis.
The government’s case is being prosecuted by Assistant United States Attorneys Winston M. Paes and Marcia M. Henry.
This prosecution was the result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets, and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants. For more information on the task force, visit http://www.StopFraud.gov.
The Defendant:
THOMAS BANNON
Age: 82
Residence: New York, New York
E.D.N.Y. Docket No. 12-CR-471
Rochester Man Arrested, Charged with Producing False Military ID Cards and Making False StatementRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Mark Allen Kelly, 54, of Rochester, NY, was arrested and charged by criminal complaint with producing false military ID cards and making false statements to federal agents. Each charge is punishable by up to five years in prison and a $250,000 fine.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the complaint, Kelly misrepresented himself to his employer and the community as being an Officer in the United States Navy. The defendant regularly wore full dress naval uniforms at Veterans events. This included a memorial for a fallen Marine killed in Afghanistan where Kelly presented a flag to the Marine’s parents. When questioned, the defendant supported his false claims by presenting an authentic looking, but fraudulently made, military ID card.
The defendant’s conduct came to the attention of the Naval Criminal Investigative Service (NCIS) who began a criminal investigation. During the investigation, Kelly was interviewed by NCIS Agents and made several false material statements. Investigators also recovered several false military ID cards in various stages of production from the defendant’s place of employment.
Kelly will make his initial appearance at 12:00 p.m. today before U.S. Magistrate Judge Jonathan Feldman.
The criminal complaint is the culmination of an investigation by Special Agents of the Naval Criminal Investigative Service, under the direction of Special Agent in Charge Leo Lamont, NCIS Northeast Field Office.
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.Queens Doctor Pleads Guilty to Conspiracy to Distribute OxycodoneRead the Press Release
Gracia L. Mayard, a Queens doctor, pleaded guilty today to conspiring to illegally distribute oxycodone, a highly addictive prescription pain killer. Mayard entered his plea before United States District Judge Joseph F. Bianco at the United States Courthouse located in Central Islip, New York. At sentencing on February 27, 2015, Mayard faces a maximum of 20 years’ imprisonment and a $1 million fine.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York; Thomas C. Krumpter, Acting Commissioner, Nassau County Police Department (NCPD); Joseph A. D’Amico, Superintendent, New York State Police (NYSP); and Shantelle P. Kitchen, Acting Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS).
“Dr. Mayard tried to evade prescription reporting requirements in order to provide vast quantitites of these powerful painkillers in exchange for cash. Simply put, he acted as a drug dealer, not a doctor. Even after he surrendered his DEA registration he continued to write prescriptions,” stated United States Attorney Lynch. “Health care professionals are not above the law, and those who illegally dispense prescriptions pills in violation of their oaths will be prosecuted.” Ms. Lynch extended her grateful appreciation to each of the law enforcement agencies for their assistance in this case.
During his allocution before Judge Bianco, Mayard admitted that in 2012 and 2013, he provided prescriptions to a co-conspirator for patients he had not examined in exchange for cash, and he continued to write prescriptions after surrendering his DEA registration to prescribe controlled substances on February 7, 2013.
On March 20, 2013, as part of a federal and state prescription drug abuse initiative within the Eastern District of New York, Mayard was arrested by members of the DEA’s Long Island Tactical Diversion Squad comprising agents and officers of the DEA, Nassau County Police Department, Rockville Centre Police Department and Port Washington Police Department. Mayard has been in custody since his arrest. According to court filings and records of the New York State Bureau of Narcotics Enforcement, during the first nine months of 2012, Mayard issued 2,953 oxycodone prescriptions – totaling 376,469 pills. On February 6, 2013, when members of the DEA Tactical Diversion Squad contacted Mayard, he voluntarily surrendered his DEA registration authorizing him to prescribe controlled substances. However, three weeks later, on February 28, 2013, Mayard nevertheless issued a prescription for oxycodone. On March 13, 2013, a pharmacist, in the presence of DEA agents, called Mayard about the prescription. During the call, Mayard confirmed that he had issued the prescription and provided his surrendered DEA registration number, all in an effort to persuade the pharmacist to fill the oxycodone prescription.
Oxycodone is a scheduled controlled substance that may be dispensed by medical professionals only for a legitimate medical purpose in the usual course of a doctor’s professional practice. It is a powerful and highly addictive drug and is increasingly abused because of its potency when crushed into a powder and ingested, leading to a heroin-like euphoria.
Mayard’s guilty plea is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative. In January 2012, this Office and the DEA, in conjunction with the five District Attorneys in this jurisdiction, the Nassau and Suffolk County Police Departments, the New York City Police Department, and New York State Police, along with other key federal, state, and local government partners, launched the Prescription Drug Initiative to mount a comprehensive response to what the United States Department of Health and Human Services’ Center for Disease Control and Prevention has called an epidemic increase in the abuse of so-called opioid analgesics. So far, the Prescription Drug Initiative has brought over 160 federal and local criminal prosecutions, including the prosecution of 15 health care professionals, taken civil enforcement actions against a hospital, a pharmacy, and a pharmacy chain, removed prescription authority from numerous rogue doctors, and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The government’s case was prosecuted by Assistant United States Attorney Allen Bode.
The Defendant:
Name: GRACIA L. MAYARD
Age: 62
Residence: Queens, NY
Portland Men Sentenced for Crack Cocaine TraffickingRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
Hamadi Hassan, 32, of Portland, was sentenced today in U.S. District Court by Judge Nancy
Torresen to 30 years in prison for leading a crack cocaine trafficking conspiracy. Hassan
pleaded guilty on May 12, 2014. Judge Torresen also sentenced Hassan’s co-conspirator,
Biniam Tsegai, 28, of Portland, to eight years for his role in the conspiracy. Tsegai pleaded
guilty on May 15, 2014.According to court records, between November 2010 and February 2012, the defendants
were part of a drug trafficking conspiracy that acquired cocaine in Boston and distributed crack
cocaine in the greater Portland area. Hassan was the leader of the conspiracy, took orders for
crack cocaine from customers and co-conspirators, transported cocaine from Boston to Maine,
and prepared, packaged and delivered crack cocaine to his customers and co-
conspirators. Tsegai prepared crack cocaine for sale and distribution after it had been brought to
Maine and he took orders for and delivered user-level quantities of crack cocaine to customers.The defendants operated their drug trafficking ring out of hotels in the greater Portland
area. They often carried firearms and held large sums of cash. They hid crack cocaine
throughout the greater Portland area in milk containers or cigarette cartons left randomly on the
sides of the roads, in bushes, under trees and in wooded areas. On May 16, 2011, police
recovered over 20 grams of defendants’ crack cocaine inside a cigarette box located in the play
area of a local day care facility.Judge Torresen noted that Hassan’s lengthy criminal history, including three prior
convictions for drug trafficking and violent crimes, and his violent nature warranted the lengthy
sentence imposed on him. According to evidence presented at the sentencing hearing, Hassan
threw a female co-conspirator to the ground and broke her ribs by stomping on them because of
an unpaid drug debt, choked a second female co-conspirator while promising to kill her if she
cooperated with authorities, and forced a third female co-conspirator to sell narcotics from her
hospital bed while she was admitted. Hassan was subject to an enhanced sentence as a career
offender.The investigation was conducted by the Federal Bureau of Investigation (FBI), the
Portland Police Department, the Maine Drug Enforcement Agency, the Maine State Police and
the Southern Maine Gang Task Force, which is comprised of agents and officers from the FBI,
the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration & Customs
Enforcement’s Homeland Security Investigations, the U.S. Drug Enforcement Administration
and the Portland and Biddeford Police Departments.Operation ‘Cat Eyes’ Targets Illegal Sale of ‘Misbranded’ and Adulterated Cosmetic Contact Lenses That Pose Risk to EyesightRead the Press Release
LOS ANGELES – Federal prosecutors this week filed a series of criminal charges against Los Angeles-area retail outlets, as well as their owners and managers, that allegedly sold contact lenses without prescriptions – some of which were contaminated with dangerous pathogens.
Two criminal informations filed this morning, as well as four additional informations filed on Tuesday, charge a total of 12 defendants with the illegal sale of decorative and cosmetic contact lenses.
All six cases allege that the defendants sold “misbranded” contact lenses because they were sold without prescriptions.
Two of the cases also allege that the defendants sold adulterated contact lenses that were contaminated with bacteria known as Bacillus cereus. According to court documents, the Bacillus cereus bacterial strain can cause severe infections that, even with prompt treatment, can lead to blindness.
The cases filed this week are the result of Operation “Cat Eyes,” an investigation that was conducted by the United States Food and Drug Administration’s (FDA’s) Import Operations Branch of the Los Angeles District Office; the FDA’s Office of Criminal Investigations; the California Department of Public Health; and the California Department of Consumer Affairs’ Division of Investigation, Health Quality Investigation Unit.
Operation Cat Eyes targeted retail stores – some of which were opened specifically for Halloween – that sold cosmetic and decorative contact lenses without a prescription to unsuspecting consumers in Southern California.
Contact lenses – whether corrective, cosmetic or decorative – are considered to be prescription medical devices subject to FDA regulations. Due to the risk of injury, blindness and possible eye infection, all contact lenses require prescriptions from medical professionals who can provide guidance on the proper care and maintenance of the contact lenses.
The six cases filed this week in United States District Court in Los Angeles charge these defendants:
• Halloween and Party Discounters, Inc. (which operated as a booth at the Los Angeles Fair in Pomona); Mike Honabach, 45, of Highland, the owner of Halloween and Party Discounters, Inc.; Intertrade Imports, Inc., a Jacksonville, Florida company; and Eunju Kang Savvidis, 53, of Jacksonville, the manager of Intertrade, were charged today with one count of introducing adulterated devices into interstate commerce for selling bacteria-adulterated lenses at the County Fair (Honabach and his company were charged in two additional counts with receipt of bacteria-adulterated contact lenses and with sale of misbranded contact lenses);
Aspirational International, Inc., a Hong Kong corporation that was charged today with offering misbranded contact lenses for sale at http://www.colorlens4less.com/;
Doris Owusu Ansah, 54, of West Covina, the owner of Sunset Beauty Salon in West Covina, who is charged with selling a misbranded pair of contact lens on October 16;
Jung Rae Jo, 60, of Cerritos, the owner of Fashion Young in Westminster, who allegedly sold four pairs of misbranded contact lenses to two undercover FDA investigators on October 14;
CKL Fashion, Inc. (a Corona-based company that operates T-Shirt Mart in Glendale) and its manager, Young Kim, 51, of La Crescenta, who allegedly sold two pairs of misbranded contact lenses to an undercover FDA investigator on October 14; and
HTS General, Inc. (doing business as the Halloween Superstore on North Glendale Avenue in Glendale; Zinaida Khrimyan, 25, of Glendale, the owner of HTS; and Patrick Abedi, 30, of Glendale, the store manager for HTS, who allegedly sold a pair of misbranded contact lenses on October 14.
All 12 defendants will be issued summonses directing them to appear for arraignments in federal court in Los Angeles on December 9.
All of the charges filed in Operation Cat Eyes are misdemeanor offenses that carry a statutory maximum penalty of one year in federal prison and fines of up to $100,000 for an individual and up to $200,000 for a corporation.
The FDA has issued various warnings against the use of cosmetic contact lenses (for example: http://www.fda.gov/ForConsumers/ConsumerUpdates/ucm402704.htm).
Release No. 14-147
Olympia Man who Preyed on 16-Year-Old, Sentenced to 15 Years in Prison for Production and Possession of Child PornographyRead the Press Release
A 47-year old Olympia, Washington man who was convicted in May 2014, was sentenced today in U.S. District Court in Tacoma to 15 years in prison for production and possession of child pornography, announced Acting U.S. Attorney Annette L. Hayes. MICHAEL T. LAURSEN was found guilty by U.S. District Judge Robert J. Bryan following a two day bench trial. Evidence at trial revealed that LAURSEN supplied a 16-year-old with drugs and photographed her in sexually explicit conduct. Judge Bryan imposed 10 years of supervised release following prison.
“This defendant betrayed the trust of a vulnerable young woman, claiming he would help and protect her when it really was just a ploy to exploit her,” said Acting U. S Attorney Annette L. Hayes. “He persisted in blocking the efforts of her family to get her into drug treatment and law enforcement officers investigating the crime. This 15 year prison sentence with ten years of federal supervision to follow will protect other vulnerable members of the community.”
According to records filed in the case, the victim was known to LAURSEN through her relatives. She first met LAURSEN when she was 12-years-old. After she turned 16 years old in 2012, LAURSEN initiated a sexual relationship with her, supplied her with drugs, and encouraged her to miss school. In June 2012 and October 2012, LAURSEN took photographs of the victim, including photographs of his sexual conduct with her. LAURSEN encouraged the victim to run away from home, and then had her stay with him in motel rooms, apartments, and other person’s homes. He directed her to engage in sexually explicit acts while he took photographs.
“This joint federal, state and local agency investigation illustrates the lengths to which law enforcement will go to bring a child predator to justice,” said Brad Bench, special agent in charge of HSI Seattle. “Now, with this federal sentence, the public can rest assured Laursen will spend more than a decade behind bars with close federal monitoring to follow.”
The case was investigated by the Washington State Patrol-Missing and Exploited Children’s Task Force, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI)-South Sound Investigative Task Force, Bureau of Alcohol Tobacco and Firearms, and the Federal Bureau of Investigation.
The case was prosecuted by Assistant United States Attorneys Ye-Ting Woo and Seth Wilkinson.
Oakdale Inmate Pleads Guilty to Inflicting Severe Injuries on a Fellow InmateRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that an Oakdale inmate pleaded guilty Thursday to severely beating a fellow inmate twice in one day.
Douglas Darrell Harris, 32, a resident of the Federal Correctional Institution in Oakdale, La., pleaded guilty Thursday before U.S. District Judge Patricia Minaldi to one count of assault at a federal correctional institution. According to evidence presented at the guilty plea, Harris assaulted a fellow inmate twice on April 1, 2014. One of the beatings was caught on camera, and the other was witnessed by a guard. As a result of the beatings, the injured inmate suffered from fractured fingers, a fractured humerus, blurred vision and head pain. He also suffered a seizure and was admitted into the intensive care unit. Additionally, his hands were so badly injured, they required surgery.
The defendant faces up to 10 years in prison, three years of supervised and a $250,000 fine. A sentencing date of February 12, 2015 was set.
The FBI investigated the case. Assistant U.S. Attorney Robert C. Abendroth is prosecuting the case.
New Jersey Builder Indicted on Bank Fraud and Bribery Charges as Part of $1 Million Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – A federal grand jury indicted a Neshanic Station, New Jersey, man today for his role in a $1 million mortgage fraud scheme, including an alleged bribe of a bank agent to approve a loan on a property that exploded hours before the closing, U.S. Attorney Paul J. Fishman announced.
Antonio Pimenta, 46, is charged with one count of bank fraud conspiracy, three counts of bank fraud, and one count of bribing a financial institution’s agent. He was previously charged by complaint in September 2012 for bank fraud and money laundering. Pimenta will be arraigned before U.S. District Judge Esther Salas in Newark federal court on a date to be determined.
According to the indictment and other documents filed in this and related cases:
From 2007 to 2008, Pimenta and other conspirators engaged in two related mortgage fraud conspiracies through a company called Premier Mortgage Services. The conspirators targeted properties in low-income areas of New Jersey. After recruiting “straw buyers,” they used fraudulent documents to make it appear as though the straw buyers possessed far more assets and earned far more income than they actually did.
The conspirators then submitted these fraudulent documents as part of mortgage loan applications to financial institutions. Relying on these fraudulent documents, financial institutions provided mortgage loans for the subject properties. The conspirators then split the proceeds from the mortgages among themselves at closing time. The closings went forward through the use of fraudulent settlement statements (HUD-1s), which hid the true sources and destinations of the mortgage funds provided by financial institutions. The straw buyers had no means of paying the mortgages, and many of the properties entered into foreclosure proceedings.
Attorneys, paralegals, loan officers, and others performed different roles in the scheme. Pimenta owned and managed Kelmar Construction Co. Kelmar built properties that were then sold to straw buyers using fraudulent mortgage loans brokered by Klary Arcentales and closed by Linda Cohen, two other conspirators in the scheme.
On the morning of Oct. 19, 2007, one such property, located in Irvington, New Jersey, exploded the morning before the scheduled closing. Even though the house had been obliterated, Pimenta and others were still able to close on the fraudulent mortgage loan later that day by paying a $50,000 cash bribe to Cohen, the bank’s closing agent.
In total, fraudulent loans based on properties built by Pimenta’s company caused losses of more than $1 million.
Three previously charged conspirators have already pleaded guilty in connection with the scheme. Lester Soto, 58, of Freehold, New Jersey; Klary Arcentales, 46, of Lyndhurst, New Jersey; and Linda Cohen, 56, of Orange, New Jersey have each pleaded guilty before Judge Salas.
Each count in the indictment is punishable by a maximum potential penalty of 30 years in prison and a fine of $1 million.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation. Fishman also thanked the Social Security Administration-Office of the Inspector General, under the direction of Special Agent in Charge Edward J. Ryan, for its participation in the investigation.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division and Zach Intrater of the office’s Criminal Division.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
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Defense counsel: Alain Leibman Esq., Princeton, New Jersey
Pimenta, Antonio Indictment
New Hampshire Man Pleads Guilty to Interstate Travel to Have Sex with ChildRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Chad
Amodio, 42, of Northwood, New Hampshire, pleaded guilty today in U.S District Court in
Bangor to interstate travel to have sex with a minor.Court records and proceedings reveal that in March 2014, Amodio began having
inappropriate sexual conversations on a chat website with a 13-year-old girl. Police were alerted
and an undercover officer took control of the minor’s account. Amodio communicated with the
undercover officer and made plans to travel from his home in New Hampshire to Maine in order
to have sex at the girl’s home. Shortly after arriving at the Penobscot County address provided
by the undercover officer, Amodio was arrested. Alcohol and a bottle of lubricant were found in
his vehicle which he admitted purchasing in anticipation of the planned sexual encounter.Amodio faces up to 30 years in prison and a $250,000 fine. He will be sentenced after the
completion of a presentence investigation report by the U.S. Probation Office.The investigation was conducted by the Bangor Police Department, the Federal Bureau of
Investigation, the Penobscot County Sheriff’s Office, and the Maine State Police.Nebraska Resident Sentenced to 40 Years in Prison for Conspiracy to Distribute Methamphetamine and Carrying a FirearmRead the Press Release
COUNCIL BLUFFS, IA- On November 5, 2014, Corey Allen Brooks, a 43 year-old resident of Omaha, Nebraska, was sentenced by United States District Court Judge John Jarvey to 30 years in prison for conspiracy to distribute methamphetamine, and a consecutive 10 years for possession of a firearm during the conspiracy to distribute methamphetamine, announced United States Attorney Nicholas A. Klinefeldt. Brooks’ term of imprisonment is to be followed by 10 years of supervised release.
The charges resulted from a lengthy investigation into drug trafficking by Brooks in Nebraska and Iowa. It was determined through the investigation that Brooks arranged for large quantities of methamphetamine (approximately 30 kilograms) to be delivered in Omaha, Nebraska, and Council Bluffs, Iowa, between March and September 2011. During the course of the conspiracy, Brooks carried a firearm to protect the operation from interference from outside parties. On January 6, 2014, Brooks pled guilty to both charges.
Additional members of the drug trafficking organization run by Brooks that have also been sentenced include:
Cliff Ellis was sentenced on February 15, 2013, by United States District Court Judge Stephen Rose to 175 months in prison for conspiracy to distribute methamphetamine, and a consecutive 60 months in prison for possession of a firearm during the conspiracy, to be followed by five years of supervised release.
Khodie Maves was sentenced on March 25, 2014, by United States District Court Judge John Jarvey to 80 months in prison, to be followed by 5 years of supervised release, for conspiracy to distribute methamphetamine.
Jason Hanan was sentenced on March 25, 2014, by United States District Court Judge John Jarvey to 120 months in prison for conspiracy to distribute methamphetamine and a consecutive 120 months in prison for possession of a firearm during the conspiracy, to be followed by five years of supervised release.
Roy Gage was sentenced on March 25, 2014, by United States District Court Judge John Jarvey to 100 months in prison for conspiracy to distribute methamphetamine and a consecutive 60 months in prison for possession of a firearm during the conspiracy, to be followed by five years of supervised release.
James Surber was sentenced on March 25, 2014, by United States District Court Judge John Jarvey to 60 months in prison for conspiracy to distribute methamphetamine, to be followed by five years of supervised release.
Anthony Good was sentenced on May 29, 2014, by United States District Court Judge John Jarvey to 140 months in prison for conspiracy to distribute methamphetamine and a consecutive 120 months in prison for possession of a firearm during the conspiracy, to be followed by five years of supervised release.
Chris Tietz was sentenced on July 1, 2014, by United States District Court Judge John Jarvey to 188 months in prison for conspiracy to distribute methamphetamine, to be followed by five years of supervised release.
The investigation was conducted by the Southwest Iowa Narcotics Task Force, Mills County Sheriff’s Office, Council Bluffs, Iowa, Police Department, Omaha, Nebraska, Police Department, the Iowa Division of Narcotic Enforcement, and the United States Secret Service. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release)
Navajo Woman from Colorado Pleads Guilty to Federal Child Abuse Charge in New MexicoRead the Press Release
ALBUQUERQUE – Loreena Ann Yazzie, 27, an enrolled member of the Navajo Nation who resides in Durango, Colo., pled guilty this morning in federal court in Albuquerque, N.M., to a child abuse charge.
Yazzie was arrested on April 7, 2014, on a criminal complaint alleging an assault charge. According to the criminal complaint, Yazzie injured an infant who was a passenger in a vehicle she was driving when Yazzie caused a single-car collision by falling asleep at the wheel. Yazzie allegedly was intoxicated at the time of the collision. The collision occurred on April 2, 2014, south of Shiprock, N.M., which is located within the Navajo Indian Reservation. Yazzie subsequently was indicted and charged with assault resulting in serious bodily injury and child abuse.
During today’s plea hearing, Yazzie entered a guilty plea to the child abuse charge and admitted placing a child in a situation that endangered the child’s life or health.
Under the terms of the plea agreement, Yazzie will be sentenced to a term of probation to be determined by the court. Yazzie’s sentencing hearing has yet to be scheduled.
This case was investigated by the Farmington Resident Agency of the FBI’s Albuquerque Division and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Kyle T. Nayback is prosecuting the case.Navajo Man Sentenced to Federal Prison for Involuntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Fanderick Chiquito, 23, an enrolled member of the Navajo Nation who resides in Upper Fruitland, N.M., was sentenced to 16 months in federal prison for his involuntary manslaughter conviction. Chiquito will be on supervised release for three years after completing his prison sentence.
Chiquito was arrested on Dec. 31, 2013, on a criminal complaint alleging that he killed a Navajo woman on Dec. 23, 2013, while driving under the influence of alcohol in a location within the Navajo Indian Reservation. According to court filings, Chiquito caused a three-vehicle collision near mile marker 25 on Navajo Route 36 when he tried to pass a line of vehicles and struck another vehicle head on while driving in the oncoming lane. Both vehicles spun out of control on impact and one of the vehicles struck a third vehicle. The victim, a passenger in Chiquito’s vehicle, died of internal injuries she sustained during the collision. After Chiquito was treated for minor injuries, he was arrested on tribal charges based on blood test results indicating a .29 BAC.
On Jan. 22, 2014, Chiquito was charged with involuntary manslaughter in federal court. The indictment alleged that Chiquito killed the victim while driving a vehicle under the influence of intoxicating liquor and operating a vehicle carelessly and in wanton disregard for the rights and safety of others.
On April 1, 2014, Chiquito pleaded guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Farmington Resident Agency of the FBI’s Albuquerque Division and the Shiprock office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Paul H. Spiers.
Natrona Heights Man Sentenced to Five Years in Prison for Possessing Pornographic Images and Videos of ChildrenRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 63 months imprisonment, to be followed by 10 years of supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Terry Robert Cousins, Jr., 34, of Natrona Heights, Pa.
According to information presented to the court, in and around January of 2012, Cousins knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Allegheny County Police Department for the investigation leading to the successful prosecution of Cousins.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Moretown Man Sentenced to 20 Months Imprisonment for Unlawful Possession of A Firearm by A FelonRead the Press Release
The Office of the United States Attorney for the District of Vermont stated Chief Judge Christina Reiss, of the United States District Court in Burlington, sentenced Dennis Gaskin, 28, of Moretown, Vermont to 20 months imprisonment for possessing a firearm after having been convicted of a felony. Gaskin’s prior felony was a 2004 burglary conviction in Connecticut. Judge Reiss also sentenced him to three years supervised release, which follows his jail sentence. The firearms offense was subject to a maximum term of imprisonment of ten years.
This matter began after Vermont State Police investigated a potential domestic assault at Deer Run Lane in Moretown on November 21, 2013. According to court records, Shannon Simms, who is Gaskin’s girlfriend and mother of his infant son, locked herself in her bedroom with the baby and called her grandmother for help after Gaskin had assaulted her by pushing and slamming her to the floor during an argument and putting her in a head-lock for several seconds. The Vermont State Police went to the residence, arrested Gaskin, and eventually recovered a Ruger .22 caliber assault style rifle with a high capacity magazine that belonged to Gaskin. The State charged Gaskin with domestic assault (state case still pending). Meanwhile, in March 2014, a federal grand jury indicted Gaskin on unlawfully possessing a firearm after sustaining a felony conviction.
Gaskin pled guilty to the federal firearms offense. At the recent sentencing hearing, the Government argued for the advisory Sentencing Guidelines sentence of 37 months. Gaskin’s attorney asked for a time served sentence (eight months). In arguing that Gaskin was a danger to the community, the Government cited to domestic abuse statistics, also cited by the U.S. Supreme Court, that “when a gun was in the house an abused woman was 6 times more likely than other abused woman to be killed.” The Government also argued: “A felon with a firearm is unacceptable and illegal. A felon, who abuses a woman, and possesses a firearm, is downright dangerous.”
The United States is represented by Assistant U.S. Attorney Joseph Perella while the defendant is represented by Assistant Federal Public Defendant David McColgin, Esq. This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Vermont State Police.More than 400 .Onion Addresses, Including Dozens of 'Dark Market' Sites, Targeted as Part of Global Enforcement Action on Tor NetworkRead the Press Release
Federal law enforcement has taken action against over 400 Tor hidden service .onion addresses, including dozens of “dark market” websites, that were offering a range of illegal goods and services for sale on the “Tor” network, a special network of computers on the Internet designed to conceal the locations of individuals using it.
The website addresses and computer servers hosting these websites were seized yesterday as part of a coordinated international law enforcement action involving the Justice Department’s Criminal Division, U.S. Attorney’s Office for the Southern District of New York, and law enforcement agencies of approximately 16 foreign nations working under the umbrella of Europol’s European Cybercrime Centre (EC3) and Eurojust. This action follows the arrest on Nov. 5, 2014, of Blake Benthall, aka “Defcon,” for charges brought in the Southern District of New York for his alleged role in operating the Silk Road 2.0 website. This action constitutes the largest law enforcement action to date against criminal websites operating on the “Tor” network.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Preet Bharara of the Southern District of New York, FBI Executive Assistant Director Robert Anderson and Executive Associate Director Peter Edge of Homeland Security Investigations (HSI) made the announcement.
“It is a plain fact that criminals use advanced technology to commit their crimes and conceal evidence – and they hide behind international borders so they can stymie law enforcement,” said Assistant Attorney General Caldwell. “But the global law enforcement community has innovated and collaborated to disrupt these ‘dark market’ websites, no matter how sophisticated or far-flung they have become.”
“As illegal activity online becomes more prevalent, criminals can no longer expect that they can hide in the shadows of the ‘dark web,’” said U.S. Attorney Bharara. “We shut down the original Silk Road website and now we have shut down its replacement, as well as multiple other ‘dark market’ sites allegedly offering all manner of illicit goods and services, from firearms to computer hacking. In coordination with domestic and international law enforcement agencies, we will continue to seize websites that promote illegal and harmful activities, and prosecute those who create and operate them.”
“Working closely with domestic and international law enforcement, the FBI and our partners have taken action to disrupt several websites dedicated to the buying and selling of illegal drugs and other unlawful goods,” said FBI Executive Assistant Director Anderson. “Combating cyber criminals remains a top priority for the FBI, and we continue to aggressively investigate, disrupt, and dismantle illicit networks that pose a threat in cyberspace.”
“Underground websites such as Silk Road and Silk Road 2 are like the Wild West of the Internet, where criminals can anonymously buy and sell all things illegal,” said HSI Associate Director Edge. “We will continue to use all of our resources and work closely with our U.S. and international law enforcement partners to shut down these hidden black market sites, and hold criminals accountable who use anonymous Internet software to peddle their illegal activities.”
According to public documents, the seizure operation targeted the Silk Road 2.0 website and more than 400 hidden services related to dozens of other “dark market” websites that are only accessible to operating on what is known as “The Onion Router” or “Tor” network, a part of the Internet designed to make it practically impossible to physically locate the computers hosting or accessing websites on the network. These sites were all operating online black markets, openly advertising on their home pages and offering to sell a variety of illicit goods and services to customers in the United States and elsewhere. The advertised goods and services included, among other things: illegal narcotics; firearms; stolen credit card data and personal identification information; counterfeit currency; fake passports and other identification documents; and computer-hacking tools and services.
The “dark market” websites were designed to facilitate illicit commerce by providing anonymity to users. The sites were only accessible to users of the Tor anonymizing network. The sites also accepted payments for their illicit goods and services in bitcoin or similar virtual currency designed to be as anonymous.
The operation involved the seizure of over 400 Tor website addresses – known as “.onion” addresses – as well as the servers hosting them. Examples of the websites seized in the operation include:
- “Pandora” (pandora3uym4z42b.onion), “Blue Sky” (blueskyplzv4fsti.onion), “Hydra” (hydrampvvnunildl.onion), and “Cloud Nine” (xvqrvtnn4pbcnxwt.onion), all of which were dark markets similar to Silk Road 2.0, offering an extensive range of illegal goods and services for sale, including drugs, stolen credit card data, counterfeit currency, and fake identity documents.
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“Executive Outcomes” (http://iczyaan7hzkyjown.onion), which specialized in firearms trafficking, with offerings including assault rifles, automatic weapons, and sound suppressors. The site stated that it used “secure drop ship locations” throughout the world so that “anonymity [was] ensured” throughout the shipping process, and that all serial numbers from the weapons it sold were “remove[d] . . . and refill[ed] with metal.”
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“Fake Real Plastic” (http://igvmwp3544wpnd6u.onion), which offered to sell counterfeit credit cards, encoded with “stolen credit card data” and “printed to look just like real VISA and Mastercards.” The cards were “[g]uaranteed to have at least $2500 left on [the] credit card limit” and could be embossed with “any name you want on the card.”
- “Fake ID” (http://23swqgocas65z7xz.onion), which offered fake passports from a number of countries, advertised as “high quality” and having “all security features” of original documents. The site further advertised the ability to “affix almost all kind of stamps into the passports.”
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“Fast Cash!” (http://5oulvdsnka55buw6.onion) and “Super Notes Counter” (http://67yjqewxrd2ewbtp.onion), which offered to sell counterfeit Euros and U.S. dollars in exchange for Bitcoin.
This ongoing investigation is being conducted by the FBI and its New York Special Operations and Cyber Branch, along with its Washington, Philadelphia and Indianapolis Field Offices, and by HSI and its Cyber Crimes Center and Chicago-O’Hare Field Office, with assistance from Drug Enforcement Administration’s (DEA) New York Organized Crime Drug Enforcement Strike Force, which comprises agents and officers of the DEA, the Internal Revenue Service, the New York City Police Department, HSI, the New York State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Secret Service, the U.S. Marshals Service, the Office of Foreign Assets Control, and the New York Department of Taxation. The law enforcement authorities of Bulgaria, Czech Republic, Finland, France, Germany, Hungary, Ireland, Latvia, Lithuania, Luxembourg, Netherlands, Romania, Spain, Sweden, Switzerland, and the United Kingdom, whose actions have been coordinated through Eurojust and Europol’s EC3, provided substantial assistance.
The Criminal Division’s Computer Crime and Intellectual Property, Organized Crime and Gang, and Narcotic and Dangerous Drug Sections and the U.S. Attorney’s Office for the Southern District of New York are prosecuting these cases. Substantial assistance was provided by the U.S. Attorneys’ Offices for the District of Columbia, the Eastern District of Washington, the Eastern District of Louisiana, the Western District of New York, the Northern District of Texas, and the Northern District of Georgia. The Criminal Division’s Office of International Affairs and Asset Forfeiture and Money Laundering Section provided substantial assistance.
Minot Man Sentenced for Possession of a Firearm and Ammunition by a Convicted FelonRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on November 7, 2014, Brian Lamont Sweeney, 47, Minot, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of possession of firearm and ammunition by a convicted felon. Sweeney was convicted of the charge by a federal jury on June 19, 2014.
Judge Hovland sentenced Sweeney to serve seven years in federal prison, to be followed by three years of supervised release. Sweeney was ordered to pay a $100 special assessment to the Crime Victim’s Fund.
On October 14, 2013, in Minot, North Dakota, Sweeney was stopped for a traffic violation. After smelling the odor of marijuana coming from the vehicle, a law enforcement search resulted in the discovery of a loaded .380 caliber handgun.
Sweeney was prohibited from possessing either a firearm or ammunition by virtue of multiple felony convictions, including possession of a controlled substance, possession of drug paraphernalia, aggravated assault, and felon in possession of a firearm. He was on probation with the State of North Dakota at the time of the offense.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Minot Police Department, the Ward County Sheriff’s Office and the North Dakota Department of Corrections and Rehabilitation – Parole and Probation Services.
Assistant U.S. Attorney David Hagler prosecuted the case.
Mexican National Pleads Guilty to Money Laundering in Connection with Federal Wireless Telephone Subsidy ProgramRead the Press Release
Oklahoma City, Oklahoma – OSCAR ENRIQUE PEREZ-ZUMAETA, of Cancun, Mexico, pled guilty today to laundering the proceeds of a scheme to defraud the Federal Communications Commission, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. Perez-Zumaeta’s guilty plea comes five months after ICON Telecom, Inc., and its owner, Wes Yui Chew, entered guilty pleas in the same investigation and agreed to forfeit more than $27 million taken illegally from the FCC’s Lifeline Program.
"Unfortunately, people decide to defraud well-intentioned government programs for personal benefit," said Coats. "The FCC Lifeline program is intended to help low-income Americans have access to telephone services, and this individual exploited the program for his own, significant financial gain. I applaud the FCC-Inspector General, FBI and IRS Criminal Investigation for their exemplary work in this case, and urge the public to report fraud relating to all government programs."
FCC Chairman Tom Wheeler said, "I applaud the efforts of the United States Attorney’s Office to bring to justice the criminals guilty of defrauding the Lifeline program designed to assist low-income Americans to afford basic phone services. Today’s action could not be accomplished without the work of the FCC’s Office of Inspector General. Waste, fraud, and abuse of the program is simply unacceptable. The Commission will remain vigilant in our work to root out abuses and continue to work with our partners in the U.S. Attorney’s Office, IRS and the FBI."
The current Lifeline Program, which was created in 1985, furthers the FCC’s mission to provide all Americans with access to a basic level of telephone service. Since 2005, Lifeline has provided subsidies to participating telephone companies not only for landline service, but also for wireless service for qualifying low-income customers. The Universal Service Administrative Company ("USAC") administers the Lifeline Program on behalf of the FCC and under detailed federal regulations. To pay for the program, USAC collects fees from telephone companies, which often pass the fees on to customers as "universal service charges" on monthly telephone bills.
Most participating wireless telephone companies receive a subsidy of $9.25 per month for each qualifying low-income customer. If a qualifying customer lives on "tribal lands," however, the company receives $34.25 per customer. Much of Oklahoma includes tribal lands that qualify for the higher monthly subsidy.
Before receiving reimbursement, participating telephone companies file forms with the FCC that report the number of Lifeline eligible customers they have served. Companies must also file annual reports by January 31 to certify that customers who received Lifeline service at an earlier date remain eligible for the program.
ICON Telecom, owned exclusively by Chew, participated in the wireless Lifeline Program from July 2011 until September 2013. In November 2011, ICON reported fewer than 12,000 wireless customers who qualified for the Lifeline program. By November 2012, that number had grown to 135,364. Although it had fewer than ten full-time employees, ICON received a total of $58,283,329 through the Lifeline Program during 2011, 2012, and 2013.
An indictment filed against Perez-Zumaeta on June 3, 2014, alleges that he owned and managed PSPS Sales LLC, a California entity that recruited low-income individuals to apply for Lifeline service through ICON. According to the indictment, ICON paid over one million dollars to PSPS Sales from December 2011 through April 2013. Perez-Zumaeta is charged with directing PSPS Sales workers to enroll fictitious customers for ICON by using phone book listings and forging Lifeline application forms. He also allegedly directed workers in Mexico to falsify approximately 40,000 Lifeline recertification forms for use in ICON’s fraudulent scheme.
Perez-Zumaeta has been in federal custody since April 25, 2014, when he was arrested at the San Francisco airport. On May 16, a federal magistrate judge ordered him detained based on a risk of flight.
Today he pled guilty to laundering $52,390.00 from ICON’s scheme by depositing a check in that amount from ICON into a bank account of PSPS Sales on December 7, 2012. He admitted that when he made that deposit, he knew that more than $10,000.00 of those funds was the result of criminal fraud against the FCC. As a result of this guilty plea, he faces up to ten years in prison, a fine of up to $250,000, and up to three years of supervised release.
This case is the result of an investigation by the Office of Inspector General for the Federal Communications Commission; the Federal Bureau of Investigation; and the Internal Revenue Service, Criminal Investigations Division. It is being prosecuted by Assistant U.S. Attorneys Chris M. Stephens and Scott E. Williams.
Reference is made to the indictment and other public filings for further information.
Manager Jeffrey Taylor Pleads Guilty in Loan Modification Fraud Scheme Case & Scheme Managers SentencedRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, and Ronald J. Verrochio, Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, announce that Jeffrey Charles Leroy Taylor, 40, pled guilty before U.S. Magistrate Judge Dave Lee Brannon to charges of conspiracy to commit mail fraud and wire fraud, and mail fraud, in violation of Title 18, United States Code, Sections 1349 and 1341, in Case No. 14-80240-CR-MARRA.
All ten defendants charged in this case have now entered guilty pleas to the charges, which involved a scheme to bilk thousands of homeowners who were struggling to make their mortgage payments. No sentencing date has been set for Taylor yet, but ringleader Jason Vitulano is scheduled for sentencing on December 5, 2014 in West Palm Beach. Taylor and Vitulano each face up to 20 years in prison as to each of the two counts of conviction, plus fines of up to $250,000 or twice the pecuniary loss, as to each count. The other eight defendants were previously sentenced by U.S. District Judge Kenneth A. Marra to prison terms ranging from 24 months to 72 months.
According to the indictment and other documents filed in the case, between September 2008 and August 2009, the defendants operated boiler rooms that collected advance fees from distressed homeowners purportedly in exchange for obtaining loan modifications for the homeowners which were, with few exceptions, never provided.
The indictment alleges that defendant Vitulano was the organizer and operator of FHA All Day.com, Inc. and two other companies, Housing Assistance Law Center, Inc. and Safety Financial Corp., which operated the boiler rooms in Boca Raton and later in Deerfield Beach. According to the indictment and the factual proffers submitted in support of the guilty pleas, Jeffrey Taylor was a team manager who directed sales staff, including telemarketers who made thousands of phone calls to homeowners behind on their mortgage payments.
As alleged in the indictment, the defendants made numerous false statements to the homeowners including telling homeowners they had already been approved or pre-approved for a loan modification that would save the homeowner a specific amount off their mortgage payment, reducing the interest rate and often the principal balance on the mortgage loan. The defendants, according to the indictment, routinely told customers that they had been approved by an “underwriter” and that they had a team of “expert attorneys” who would finalize the loan modifications.
The indictment further alleges that the defendants targeted homeowners across the country who were facing foreclosure, falsely telling them that the company would stop the foreclosure process and that homeowners could stop making mortgage payments while they waited for the company to finalize their loan modifications. FHA All Day, as alleged in the indictment, moved its offices and changed the corporate name several times to avoid law enforcement scrutiny and to hamper consumer complaints. Through the use of these and other false representations, the defendants, according to the indictment, induced over 2,000 distressed homeowners to pay up front fees totaling approximately seven million dollars to the defendants.
Mr. Ferrer commended the investigative efforts of USSS and USPIS. This case is being prosecuted by Assistant U.S. Attorney Lauren Jorgensen and Adrienne Rabinowitz.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Man Sentenced for Carrying Out Fraudulent Tax Refund Scheme While in PrisonRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of GARY LEE SPEAR, 36, to 58 months in federal prison for filing fraudulent tax returns. SPEAR, who was indicted on January 7, 2014 along with co-defendants MONEER JUNE KHAZRAEINAZMPOUR and KELLY MATTESON, pleaded guilty on April 11, 2014 to one count of Conspiracy to Defraud the United States. KHAZRAEINAZMPOUR pleaded guilty on March 11, 2014 to one count of Conspiracy to Defraud the United States and one count of Distribution of Methamphetamine. She was sentenced on June 9, 2014 to 60 months in federal prison. MATTESON, who pleaded guilty on May 1, 2014 to one count of Conspiracy to Defraud the United States, was sentenced on October 17, 2014 to 18 months in federal prison.
According to documents filed in court, from January 2009 through September 2011, SPEAR conspired with KHAZRAEINAZMPOUR and MATTESON, and other unnamed individuals, to file fraudulent tax returns in order to obtain large tax refunds. The purpose of the conspiracy was to steal money from the IRS by filing tax returns that reported inflated income, false withholdings, and other false items.
According to his guilty plea, SPEAR admitted that his role in the conspiracy involved obtaining personal identifying information, including birth dates and social security numbers, of prison inmates and then providing the information to his co-defendants. SPEAR carried out his role in the scheme while incarcerated in state prison for other crimes. SPEAR and his co-defendants submitted more than 130 fraudulent claims seeking refunds totaling more than $500,000.
This case resulted from an investigation conducted by the Internal Revenue Service-Criminal Investigations and the Minnesota Bureau of Criminal Apprehension. It was prosecuted by Assistant U.S. Attorney William J. Otteson.
Defendant Information:
GARY LEE SPEAR, 36
Sherburne County Jail
Convicted:
• Conspiracy to Defraud the United States, 1 count
Sentenced:
• 58 months in prison
• 3 year term of supervised release###
Luzerne County Man Sentenced to 9 Years in Prison for Sex Trafficking of A MinorRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Wilkes-Barre man was sentenced today to serve nine years in federal prison by U.S. District Court Judge Robert D. Mariani for sex trafficking of a minor.
According to United States Attorney Peter Smith, the defendant, Travis Humphrey, age 27, previously pleaded guilty to recruiting and transporting a then 16-year-old female to engage in commercial sex acts in motels in Pennsylvania and New Jersey. In furtherance of the crime, Humphrey and others rented motel rooms and posted “escort” advertisements and photographs on a website during 2013.
Humphrey was indicted by a federal grand jury in January 2014, as a result of an investigation by the Department of Homeland Security (DHS), Homeland Security Investigations (HSI), the Pennsylvania State Police, and the Luzerne County District Attorney’s Office.
Judge Mariani also ordered Humphrey to serve five years on supervised release following his prison sentence, and to pay a $100 special assessment. Humphrey will also have to register as a sex offender and undergo sex offender treatment.
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."
Justice Department Reaches $5 Million Settlement with Flakeboard, Arauco, Inversiones Angelini and Sierrapine for Illegal Premerger CoordinationRead the Press Release
The department today announced a settlement with Flakeboard America Limited; its parent companies, Celulosa Arauco y Constitución S.A. and Inversiones Angelini y Compañía Limitada; and SierraPine. The settlement requires the companies to pay a combined $3.8 million in civil penalties for violating the Hart–Scott–Rodino (HSR) Act of 1976. In addition, for violating Section 1 of the Sherman Act, Flakeboard must disgorge $1.15 million in illegally obtained profits and both Flakeboard and SierraPine must establish antitrust compliance programs and agree to certain restrictions.
The settlement resolves the department’s allegations that Flakeboard, Arauco and SierraPine engaged in illegal premerger coordination while Flakeboard’s proposed acquisition of three SierraPine mills was under antitrust review by the Department of Justice.
Flakeboard and SierraPine abandoned the proposed acquisition on Sept. 30, 2014, after the department expressed concerns about the transaction’s likely anticompetitive effects in the production of medium-density fiberboard (MDF). MDF is a manufactured wood product widely used in furniture, kitchen cabinets, and decorative mouldings.
The department today filed, in U.S. District Court for the Northern District of California, a civil antitrust complaint alleging violations of the HSR Act (Section 7A of the Clayton Act) and Section 1 of the Sherman Act. At the same time, the department filed an agreement that, if approved by the court, would resolve the lawsuit.
“Companies proposing to merge must remain separate and independent during the government’s investigation,” said Bill Baer, Assistant Attorney General of the Department of Justice’s Antitrust Division. “These two competitors did not. Instead they closed a plant and allocated customers when they should have been competing vigorously. As a result both companies are paying substantial civil penalties and Flakeboard is being forced to surrender the ill-gotten profit it gained from violating the antitrust laws.”
According to the complaint, before the proposed acquisition, SierraPine operated particleboard mills in Springfield, Oregon, and Martell, California, that competed directly with Flakeboard’s particleboard mill in Albany, Oregon. Particleboard is an unfinished wood product that is widely used in countertops, shelving, low-end furniture, and other finished products. The Springfield and Martell mills were included in the proposed acquisition along with a third SierraPine mill that produced MDF. The complaint alleges that after announcing the proposed acquisition on Jan. 14, 2014, and before the expiration of the HSR Act’s mandatory premerger waiting period, Flakeboard, Arauco, and SierraPine illegally coordinated to close SierraPine’s particleboard mill in Springfield, Oregon, and move the mill’s customers to Flakeboard. This unlawful coordination led to the permanent shutdown of the Springfield mill on March 13, 2014, and enabled Flakeboard to secure a significant number of Springfield’s customers for its Albany mill. The defendants’ conduct constituted an illegal agreement to restrain trade in violation of Section 1 of the Sherman Act, and prematurely transferred operational control, and therefore beneficial ownership, of SierraPine’s business to Flakeboard in violation of the HSR Act.
The HSR Act requires companies planning acquisitions or mergers that meet certain thresholds to file premerger notification documents with the department and the Federal Trade Commission. The HSR Act also requires that the merging parties observe a mandatory waiting period before proceeding with the transaction. If the government determines that a transaction violates the antitrust laws, it may seek to block that transaction before the waiting period expires. Each party is subject to a maximum civil penalty of $16,000 per day for each day they violate the HSR Act.
The complaint alleges that the defendants’ HSR Act violation occurred from January 17, 2014, when Flakeboard and SierraPine began coordinating on the closure of the Springfield mill, until the expiration of the waiting period on Aug. 27, 2014. The companies cooperated with the investigation by voluntarily providing the department with evidence of their unlawful premerger conduct, which was a significant factor in the department’s decision to reduce the maximum HSR penalty. The $1.15 million in disgorgement under the Sherman Act represents a reasonable approximation of the ill-gotten profit Flakeboard received as a result of the parties’ coordination to close Springfield and move the mill’s customers to Flakeboard.
Flakeboard is a Delaware corporation with its U.S. headquarters in Fort Mill, South Carolina. Flakeboard’s parent company is Celulosa Arauco y Constitución (Arauco), which is held by Inversiones Angelini y Compañía Limitada, a Chilean corporation headquartered in Santiago, Chile, and the ultimate parent entity named on the HSR filing.
SierraPine is a California limited partnership headquartered in Roseville, California.
As required by the Tunney Act, the proposed settlement, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Peter Mucchetti, Chief, Litigation I Section, Antitrust Division, U.S. Department of Justice, 450 5th Street, N.W., Suite 4100, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may enter the proposed final judgment upon finding that it is in the public interest.
Flakeboard Complaint
Flakeboard Explanation
Flakeboard Competitive Impact Statement
Flakeboard Proposed Final Judgement
Flakeboard Stipulation
Jury Convicts Rose City Dentist for Refusing to Pay TaxesRead the Press Release
A Rose City dentist was found guilty by a jury in federal court of income tax evasion, mail fraud and making false statements to the Internal Revenue Service, U.S. Attorney Barbara McQuade announced today.
McQuade was joined in the announcement by Jarod Koopman, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation.
Convicted was Carter White Rae, of Rose City, Michigan, after a trial before U.S. District Judge Thomas L. Ludington in Bay City, Michigan.
According to court records and evidence introduced at trial, Rae refused to pay both federal and the state income taxes from 2001 through 2011. Rae utilized many different tactics to avoid paying taxes that he knew he owed, including operating his dental practice using the Employer Identification Number (EIN) of the former owner; opening and using a business bank account in the name and the EIN of the former owner of the practice; closing his personal bank account and using only his business bank account, cash and money orders to pay his personal expenses.
The evidence at trial showed that Rae took many steps to deceive the IRS. He characterized payments to his wife as “payroll” expenses even when his wife, who rarely worked for his dental business, lived in a different state. Rae directed payments from dental insurance companies to be diverted to third parties to avoid an Internal Revenue Service levy, and he also refused to produce records pursuant to a court order directing him to comply with an IRS Summons.
“The jury has sent a strong message that our citizens will not tolerate those who attempt to evade their taxes. IRS-CI will continue to pursue these types of cases reaffirming our message that we do not expect honest taxpayers to foot the bill for those who attempt to break the tax laws,” said Special Agent in Charge Jarod Koopman.
Sentencing currently is scheduled for February 25, 2015, before Judge Ludington. Rae faces a statutory maximum potential sentence of 5 years in prison for the evasion and false statement counts and a maximum term of 20 years imprisonment for the mail fraud charge. All three counts carry a fine of up to $250,000.
The case was investigated by special agents of the IRS-Criminal Investigation and is being prosecuted by the U.S. Attorney’s Office in Bay City.Jury Convicts Man of Attempted Bank RobberyRead the Press Release
TULSA, Okla. — Following a five-day trial, a Federal jury convicted Francis Harry Dishmon, 51, of Tulsa, of attempted robbery of the IBC Bank in Miami, Oklahoma, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma.
On April 8, 2014, the Government filed a two-count Indictment which charged Dishmon with attempted bank robbery and killing a person while attempting to avoid apprehension.
The charging statute provides a statutory maximum penalty of 20 years in prison and a $250,000 fine for attempted bank robbery. The case was tried before United States District Judge John E. Dowdell and he will sentence Dishmon on the attempted robbery conviction on March 9, 2015.
The Government alleged in Count 2 of the Indictment that on August 28, 2013, after attempting to rob the IBC Bank, Dishmon caused a deadly crash while attempting to avoid law enforcement apprehension. The jury could not reach a verdict on Count 2 and it will be retried at a later date. The verdict was received by United States District Chief Judge Gregory K. Frizzell.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Jan Reincke and Gary L. Davis II on behalf of the United States.U.S. v. Francis Harry Dishmon
Honduran Man, Ricky Guiti, Charged with Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RICKY GUITI, age 29, a native of Honduras, was indicted today by a federal grand jury for reentering the United States without permission, after previously having been deported.
According to court documents, GUITI was previously removed from the United States on October 27, 2011. GUITI was found in the Eastern District of Louisiana on October 5, 2014, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
If convicted, GUITI faces a maximum term of imprisonment of two years, as well as a fine of $250,000.
U.S. Attorney Polite reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Immigration and Customs Enforcement. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
(Download Indictment )
Harrisburg Man Sentenced to 20 Years Imprisonment for Attempt to Obtain Children for Sexual ActivityRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on November 6, Matthew Baratucci, age 29, of Harrisburg, was sentenced by Senior United States District Court Judge Sylvia H. Rambo to 240 months’ (20 years) imprisonment, a $1,100 fine and ten years of supervision following his release from imprisonment, after pleading guilty to coercion and enticement of a minor to engage in sexual activity.
According to U.S. Attorney Peter Smith, and as presented to the Court by Assistant U.S. Attorney Daryl Bloom, in October of 2013, Baratucci solicited two women for the purpose of obtaining children with whom he intended to engage in sexual activity. One woman related that Baratucci wanted her to provide two children she babysat, ages five and nine, threatened the woman with violence if the children were not provided. Investigators assumed the woman’s identity and arranged to meet Baratucci for the exchange of $150 for the two children. When investigators attempted to arrest Baratucci, he tried to flee, crashing into a vehicle before he was ultimately stopped by law enforcement. Baratucci pled guilty on May 21, 2014.
This case was the result of a collaborative effort between federal and state law enforcement. Attorney General Kathleen Kane commented “we will continue to work with our Federal, State and Local partners to hunt down and convict these predators”
The investigation was conducted by the United States Postal Inspection Service, the Pennsylvania Office of the Attorney General and the Pennsylvania State Police with the assistance of the Lower Paxton Township Police Department.
Georgia Man Pleads Guilty to Securities FraudRead the Press Release
CINCINNATI – Charles H. Sheehan III a/k/a/ “Duke Sheehan”, 69, of Cumming, Ga. pleaded guilty in U.S. District Court to one count of securities fraud.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the plea entered today before Judge Timothy S. Black.
According to court documents, Sheehan represented himself to be the President and CEO of a purported charity called the Southern Foundation for the Advancement of Arts and Education, Inc., based in Georgia. Sheehan promised a Cincinnati-based real estate development group that he would invest $1 million from the group along with funds from the Southern Foundation in a series of purported investments. However, rather than investing the $1 million that had been wired to the defendant, Sheehan distributed the funds to himself and others.
Sheehan pleaded guilty to defrauding investors with respect to the Southern Foundation and the use of the investor funds. He has agreed to pay restitution in the amount of $1 million.
U.S. Attorney Stewart commended the investigation by the FBI, as well as Assistant United States Attorney Timothy Mangan, who is representing the United States in this case.
Former United States Navy Military Sealift Command Contractor and Co-Founder of Government Contracting Company Sentenced to PrisonRead the Press Release
A former contractor for the U.S. Navy Military Sealift Command (MSC) and a co-founder of a Chesapeake, Virginia, government contracting company were sentenced today for their roles in a scheme to bribe and provide illegal gratuities to public officials to secure lucrative military contracts.
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 Royce E. Curtin of the FBI’s Norfolk Office, Executive Assistant Director Charles T. May Jr. of the Naval Criminal Investigative Service (NCIS), and Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office made the announcement. United States District Judge Rebecca Beach Smith of the Eastern District of Virginia imposed the sentences.
Scott B. Miserendino Sr., 55, of Stafford, Virginia, and Timothy S. Miller, 58, of Chesapeake, Virginia, were sentenced to serve 96 months in prison and 24 months in prison, respectively. Miserendino was also ordered to forfeit $212,000 and Miller was ordered to forfeit $167,000. Miller was also ordered to pay a fine of $25,000. In August 2014, Miserendino pleaded guilty to one count of conspiracy to commit bribery and one count of bribery, and Miller pleaded guilty to providing illegal gratuities to Miserendino and Kenny E. Toy, the former Afloat Programs Manager for the N6 Command, Control, Communication, and Computer Systems Directorate.
According to admissions in his plea agreement, Miserendino was a government contractor at the MSC, which is the leading provider of transportation for the U.S. Navy. In that position, Miserendino worked closely with Toy, who exercised substantial influence over the MSC contracting process. In November 2004, Miserendino and Toy initiated a bribery scheme that spanned five years, involved multiple co-conspirators, including two companies, and resulted in Miserendino and Toy receiving more than $265,000 in cash, among other things of value, in exchange for official acts in connection with the award of MSC contracts.
Specifically, Miserendino and Toy solicited cash from co-conspirators, including a $50,000 cash payment from Miller and his business partner, Dwayne A. Hardman, to influence the award of government contracts. Miserendino admitted that he and Toy also accepted other things of value in exchange for official acts, including a vacation rental, laptop computers, flat screen televisions, a football helmet signed by Troy Aikman, a wine refrigerator and softball bats.
According to Miller’s admissions, during the scheme, his company received approximately $2.5 million in business from the MSC, despite its limited record of past performance in the industry. Miserendino and Toy also directed $3 million in business from MSC to another company run by other co-conspirators.
After the cash payments were delivered, Miller admitted that he directed the creation of a false promissory note disguising the illegal gratuities as a personal loan to another individual. Miserendino also admitted to engaging in a scheme to conceal his criminal activity by arranging for more than $85,000 to be paid to Hardman in an attempt to dissuade him from reporting the bribery scheme to law enforcement authorities.
Earlier this year, five other individuals pleaded guilty and were sentenced in connection with the bribery scheme:
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Toy pleaded guilty to bribery and was sentenced to eight years in prison and ordered to forfeit $100,000;
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Hardman pleaded guilty to bribery and was sentenced to eight years in prison and ordered to forfeit $144,000;
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Michael P. McPhail pleaded guilty to conspiracy to commit bribery and was sentenced to three years in prison and ordered to forfeit $57,000;
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Roderic J. Smith pleaded guilty to conspiracy to commit bribery and was sentenced to four years in prison and ordered to forfeit $175,000; and
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Adam C. White pleaded guilty to conspiracy to commit bribery and was sentenced to two years in prison and ordered to forfeit $57,000.
The case was investigated by the FBI, NCIS and DCIS, and prosecuted by Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Stephen W. Haynie of the Eastern District of Virginia.
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