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Friday 7 November 2014
Former Union County, N.J. Port Executive Sentenced to One Year in Prison for Commercial BriberyRead the Press Release
TRENTON, N.J. - A maintenance director at Maher Terminals in Union County, New Jersey, was sentenced today to 12 months in prison for soliciting and accepting cash bribes of more than $100,000 in return for demolition and construction contracts at a container ship facility, U.S. Attorney Paul J. Fishman announced.
Donald Olesky, 57, of Sayreville, New Jersey, previously pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with two counts of using, and causing to be used, the mail in aid of an unlawful activity, specifically commercial bribery under New Jersey law. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements in court:
Olesky was director of facility maintenance at Maher Terminals at Port Elizabeth, New Jersey. As part of his duties, he obtained bids and awarded contracts for construction projects. From 2000 through 2011, Olesky manipulated the bidding process to ensure demolition and construction projects were awarded to contractors that paid him cash bribes. During his plea proceeding, Olesky admitted to soliciting and accepting $122,000 in bribes.
In addition to the prison term, Judge Wolfson sentenced Olesky to two years of supervised release, ordered him to forfeit $288,000 and fined him $10,000.
U.S. Attorney Fishman credited special agents of the FBI’s Trenton Field Office, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Harvey Bartle, the Attorney-in-Charge of the U.S. Attorney’s Trenton Office, and Vikas Khanna, of the U.S. Attorney’s Office’s Special Prosecutions Division.
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Defense counsel: Robert Stahl Esq., Westfield, N.J.Former Stone County Arkansas Deputy and Two Former Inmates at the Stone County Jail Indicted for Violating Inmate’s Civil RightsRead the Press Release
Former Stone County Arkansas Deputy and jail administrator, Randel Branscum, 54, and two former inmates at the Stone County Jail, Matthew McConniel, 42, and James Beckham, 34, have been indicted on charges of conspiracy to violate the rights of inmates at the jail and deprivation of rights under color of law, the Justice Department announced. The indictments were unsealed on Nov. 6, 2014.
The indictment alleges that on or about Sept. 19, 2011, Branscum conspired with McConniel and Beckham to have inmates at the Stone County Jail physically assaulted. Branscum, in his capacity as jail administrator, ordered two inmates be transferred into McConniel and Beckham’s cell. Once the inmate transfer had been completed, McConniel and Beckham assaulted one of the inmates, causing bodily injury to him.
If convicted of both counts in the indictment, each defendant faces a maximum statutory sentence of 20 years in prison.
An indictment is merely an accusation, and the defendants in this case are presumed innocent unless proven guilty.
This case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Trial Attorneys Henry Leventis and Samantha Trepel of the Civil Rights Division.
Former Bank President Indicted for Bank and Money Laundering ChargesRead the Press Release
Follow @NDFLNewsPENSACOLA, FLORIDA – Michael “Sean” Davis, 43, of Crestview, has been indicted by a federal grand jury for nine felony counts, which included one count of conspiracy to commit bank fraud and/or mail fraud affecting a financial institution, one count of conspiracy to commit money laundering, four counts of false statement to a federally insured institution, two counts of fraudulently benefitting from a loan by a federally insured institution, and one count of money laundering. The indictment was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment alleges that Davis, while the president of Premier Community Bank of the Emerald Coast, devised a scheme to defraud and fraudulently obtain money and property from Premier Community Bank, Bank of America, and Beach Community Bank, all of which were federally insured. As a part of the scheme, it is alleged that Davis orchestrated short sales from Bank of America by causing the submission of false documents in real estate closings. The indictment also alleges that Davis, through his company MSD Investments, received funds from loans he authorized and approved as president of Premier Community Bank.
Davis had his arraignment yesterday afternoon before Magistrate Judge Elizabeth M. Timothy at the United States Courthouse in Pensacola, Florida. The trial is scheduled for Monday, January 5, 2015, before Chief United States District Court Judge M. Casey Rodgers.
The case is being investigated by IRS Criminal Investigation with assistance from the Federal Deposit Insurance Corporation’s Office of Inspector General, the Okaloosa County Sheriff’s Office as part of the Northwest Florida Financial Crimes Task Force, and the U.S. Treasury Department’s Special Inspector General for the Troubled Asset Relief Program. This case is being prosecuted by Assistant United States Attorney Tiffany H. Eggers.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.Fifth Ohio Businessman Associated with Cadillac Ranch Restaurants Sentenced for Tax EvasionRead the Press Release
A Marion, Ohio, man was sentenced yesterday in U.S. District Court for the Southern District of Ohio to serve 12 months and one day in prison, the Justice Department and Internal Revenue Service (IRS) announced.
Joel Field, 58, was also sentenced to serve four months in a halfway house and four months of home confinement, to pay $349,778 in restitution and a $4,000 fine, and to serve three years of supervised release by U.S. District Judge Edmund A. Sargus Jr. Field pleaded guilty to tax evasion in May.
Field was one of four businessmen involved in the development, operation and ownership of primarily Cadillac Ranch restaurants in Ohio and elsewhere. Field’s brother, Jon B. Field, of Dublin, Ohio, and his accountant, Larry Couchot, of Dayton, were sentenced to prison by Judge Sargus for their tax crimes earlier this year.
In May 2014, Field pleaded guilty to evading payment of his federal income taxes for the years 1997 through 2001. According to court documents, when the IRS attempted to collect the outstanding amount of taxes owed by Field, which was in excess of $140,000, Field misled the IRS by failing to report assets and income and by submitting false information regarding foreclosure proceedings. Further, according to documents filed with the court, Field transferred assets in an effort to conceal those assets from the IRS. Field also filed false federal income tax returns for the years 2006 through 2009 wherein he failed to report over $620,000 in income that he earned through his companies.
The case was investigated by the IRS-Criminal Investigation and is being handled by Trial Attorney Richard M. Rolwing for the Justice Department’s Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website. Additional information about tax fraud schemes to watch out for may be found on the IRS-Criminal Investigation website.
Federal Jury Convicts Allen GangRead the Press Release
U.S. Attorney Kenneth A. Polite announced that GIE PRESTON, age 39, BURNELL ALLEN, age 35, and SONNY ALLEN, age 31, all residents of New Orleans, Louisiana, were convicted late yesterday after a 4-day jury trial. The jury returned a verdict of guilty on a superseding indictment charging all defendants with conspiring to distribute and possess with intent to distribute 280 grams or more of cocaine base “crack.” The jury also found SONNY ALLEN guilty of distributing a quantity of cocaine base “crack” on four occasions. In addition, GIE PRESTON was found guilty of possessing a firearm in furtherance of a drug trafficking crime, being a convicted felon in possession of firearms, and conspiring to possess a firearm in furtherance of a drug trafficking crime. BURNELL ALLEN and SONNY ALLEN were found not guilty of conspiring to possess a firearm in furtherance of a drug trafficking crime and GIE PRESTON was found not guilty of another gun crime.
Evidence was presented at trial that these defendants are related and grew up in and around the former Melpomene Housing Development, engaged in high volume street level drug dealing over the course of several years. The majority of this activity took place near an older relative’s home located at 1218 Simon Bolivar Avenue. Further evidence presented showed that the defendants routinely carried firearms to protect themselves while engaged in distributing illegal narcotics.
U.S. District Judge Stanwood R. Duval, Jr. scheduled sentencing for April 8, 2015. GIE PRESTON faces 15 years to life; BURNELL ALLEN faces a mandatory life sentence; and SONNY ALLEN faces 20 years to life.
"The Allen Gang sold crack cocaine 'every day, all day' in the Guste high rises, and used guns to protect that business," U.S. Attorney Kenneth A. Polite said in a statement. "These guilty verdicts ensure that these men spend decades in jail for terrorizing their community."
ATF Special Agent in Charge Phillip Durham stated, “For decades, the criminal enterprise known as the Allen family has preyed upon the local community by using firearms to commit violent crimes and distributing large quantities of illegal drugs. Unquestionably, these guilty verdicts are a resounding victory for the citizens of New Orleans and highlight the unyielding efforts of ATF and the Multi-Agency Gang Unit in combating these violent crimes.”
“This verdict is proof that the rules of the game have changed for good,” said NOPD Superintendent Michael Harrison. “Through the Multi-Agency Gang Unit, local, state and federal law enforcement agencies are working together every day to take dangerous individuals off the streets. We will not rest until every neighborhood in New Orleans is a safe neighborhood.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives as part of the metro area’s Multi-Agency Gang Unit (MAG). As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the MAG Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Federal Bureau of Investigation (FBI); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and the New Orleans Police Department in investigation this matter. Assistant U.S. Attorneys Sean Toomey and Andre Lagarde were in charge of prosecuting this matter.
Fbi Director Recognizes Prosecutors for Sex Trafficking ProsecutionRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today that the Director of the Federal Bureau of Investigation has recognized two Assistant United States Attorneys (AUSAs) for their exceptional work in a commercial sex trafficking prosecution.
In a ceremony at the U.S. Attorney’s Office in Baton Rouge, FBI Special Agent-in-Charge Mike Anderson presented AUSAs Susan C. Amundson and Frederick A. Menner, Jr., with the FBI Director’s certificates in recognition of their achievements. FBI Supervisory Special Agent Charles Delaughter and FBI Special Agent Taneka Harris were also present.
AUSAs Amundson and Menner were specifically recognized for their work prosecuting Erick Banks, a man convicted of enticing a 15-year-old girl to engage in prostitution. Shortly after running away from home, the victim encountered Banks who used online advertising to offer the victim as a prostitute. Banks used the moniker “Sinsational” or “Blonde Bunny” to describe the victim in ads. Banks instructed the victim how to engage in telephone conversations with potential customers and how to determine if a customer was a law enforcement officer. Banks coordinated the sexual encounters and took the money paid to the victim by customers. Banks was sentenced to 9 years in federal prison. He was also sentenced to five years of supervised release after imprisonment and ordered to pay the victim $1,200 in restitution.
U.S. Attorney Green stated: “I join the FBI Director in extending my heartfelt appreciation to AUSAs Amundson and Menner. Their passion, dedication, and talent make all the difference as we pursue justice against the evils of commercial sex trafficking. The same is true of the dedicated FBI agent who worked hand-in-hand with prosecutors throughout the investigation and prosecution. I look forward to our office continuing the fight against commercial sex trafficking with the FBI and our other federal, state, and local partners.”
The U.S. Attorney’s Office leads the Middle District of Louisiana Human Trafficking Task Force which is made up of federal, state, and local enforcement agencies, as well as other governmental entities and non-governmental organizations involved in assisting victims of human trafficking. The Task Force members have contributed significantly to raising awareness of this issue, coordinating an appropriate response, and enabling law enforcement to successfully investigate and prosecute these important cases.
Dozens of Online “Dark Markets” Seized Pursuant to Forfeiture Complaint Filed in Manhattan Federal Court in Conjunction with the Arrest of the Operator of Silk Road 2.0Read the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division, George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Peter Edge, Executive Associate Director of Homeland Security Investigations (“HSI”), announced today the seizure of the Silk Road 2.0 website as well as dozens of additional “dark market” websites 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 true IP addresses of the computers on the network. The website addresses and computer servers hosting these websites were seized yesterday as part of a coordinated international law enforcement action involving the U.S. Attorney’s Office for the Southern District of New York, the Department of Justice’s Computer Crime and Intellectual Property Section, and the 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 announced Thursday of BLAKE BENTHALL, a/k/a “Defcon,” for his alleged role in operating the Silk Road 2.0 website. It constitutes the largest law enforcement action to date against criminal websites operating on the “Tor” network.
Manhattan U.S. Attorney Preet Bharara said: “As illegal activity online becomes more prevalent, criminals can no longer expect that they can hide in the shadows of the ‘dark web.’ 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.”
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division said: “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. 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.”
FBI Assistant Director-in-Charge George Venizelos said: “In today’s world we do everything online, from banking to grocery shopping. In much the same way, criminals have taken their illicit business to the ‘Tor’ network. However, websites that offer everything from drugs to illegal services on these black-market sites are not out of reach of law enforcement, as today’s announcement shows. We will continue to work with law enforcement at home and abroad to investigate, disrupt, and dismantle illicit networks that pose a threat in cyberspace.”
HSI Executive Associate Director Peter Edge said: “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. 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 the forfeiture complaint and other public documents:
The sites targeted in the seizure operation include the Silk Road 2.0 website and dozens of other “dark market” websites 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 (the “Dark Market Sites”). These sites were all operating online criminal marketplaces, 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 Sites were designed to facilitate the illicit commerce hosted on the sites by providing anonymity to their users, in at least two ways. First, the Dark Market Sites were only accessible to users of the Tor anonymizing network. Second, the Dark Market Sites accepted payments for their illicit goods and services in “Bitcoin” or similar electronic currency designed to be as anonymous as cash.
The operation against the Dark Market Sites involved the seizure of over 400 Tor website addresses – known as “.onion” addresses – as well as the servers hosting them. Examples of some of the sites 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.
- “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.”
- “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 genuine documents.
- “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.
Mr. Bharara praised the outstanding joint efforts of the FBI and its New York Special Operations and Cyber Branch and HSI and its Cyber Crimes Center and Chicago-O’Hare Field Office. He also thanked the Drug Enforcement Administration’s 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, Office of Foreign Assets Control, and New York Department of Taxation. Mr. Bharara also thanked the Department of Justice’s Computer Crime and Intellectual Property Section for its partnership in the operation, the Office of International Affairs, and the law enforcement authorities of Bulgaria, the Czech Republic, Finland, France, Germany, Hungary, Ireland, Latvia, Lithuania, Luxembourg, the Netherlands, Romania, Spain, Sweden, Switzerland, and the United Kingdom, whose actions have been coordinated through Eurojust and Europol’s EC3. Mr. Bharara also noted that the investigation remains ongoing.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit and Money Laundering and Asset Forfeiture Unit. Assistant United States Attorneys Serrin Turner, Timothy Howard, and Daniel Noble are in charge of the prosecution. Assistant United States Attorney Margaret Graham is in charge of the forfeiture aspect of the case.
TweetDistrict Man Sentenced to 15 Years in PrisonRead the Press Release
For Armed Carjacking in Northwest Washington
-Took Scooter at Gunpoint in Broad Daylight –WASHINGTON - Donnell Thomas, 19, of Washington, D.C., was sentenced today to 15 years in prison for an armed carjacking that took place last year in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Thomas was found guilty by a jury in August 2014 of armed carjacking and unauthorized use of a vehicle. The verdict followed a trial in the Superior Court of the District of Columbia. Thomas was sentenced by the Honorable Ronna L. Beck. Upon completion of his prison term, he will be placed on five years of superviced release. Under District of Columbia law, armed carjacking carries a mandatory minimum of 15 years of incarceration.
According to the government’s evidence, on Aug. 2, 2013, at about 8 p.m., Thomas and his juvenile accomplice carjacked the victim’s motor scooter at gunpoint at 14th and Belmont Streets NW. The victim got a good look at both of the carjackers, who rode off on the scooter. Grainy surveillance video also showed the two carjackers walking down the street a couple blocks from the site of the crime shortly before it occurred.
Over the course of the following 24 hours, Thomas sent texts and Facebook messages, bragging about obtaining a scooter. Thomas also received a Facebook message from his accomplice concerning their plans to meet on the following day, Aug. 3, 2013.
At approximately 6 p.m. on Aug. 3, a U.S. Capitol Police officer spotted both carjackers on the scooter in the 200 block of H Street NW. When the officer went to pull the scooter over, Thomas moved away from the scooter, attempted to walk away from arresting officers, and falsely claimed the scooter was a gift from a relative.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department and the U.S. Capitol Police. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Tamaya Reid and Donville Drummond; Assistant U.S. Attorneys Ann Carroll, John Giovannelli, Suzanne Curt, and John Mannarino, and former Assistant U.S. Attorney Nicholas Cannon. Finally, he thanked Assistant U.S. Attorneys Michael Spence and Christine Macey, of the Felony Major Crimes Trial Section, who prosecuted the matter.
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Dettelbach Attends White House Event to Mark the Fifth Anniversary of Landmark Shepard-Byrd Hate Crimes Prevention ActRead the Press Release
U.S. Attorney Steven M. Dettelbach was invited to the White House yesterday to speak at an event marking the fifth anniversary of the Shepard-Byrd Hate Crimes Prevention Act.
Dettelbach, who co-Chairs the Civil Rights Subcommittee of Attorney General Eric Holder’s Advisory Committee of U.S. Attorneys, moderated a panel discussion about enforcement of the Shepard-Byrd law. He was also present at the White House when President Obama signed the landmark act into law in 2009.
Providing keynote remarks at the event were Matthew Shepard’s parents, Judy and Dennis Shepard, and James Byrd Jr.’s sister, Louvon Harris, as well as Rana Singh Sodhi, the brother of Balbir Singh Sodhi, a member of the Sikh faith, believed to be the first murder victim of post-9/11 backlash.
“This anniversary was both happy and sad,” Dettelbach said. “Happy because of the positive impact this law has had in our communities, sad because of the tragedies that caused it to be enacted and which continue to require our constant efforts to enforce it. The grace and courage of the families of the victims in these terrible cases is simply inspirational. Talking with and listening to these incredible people reminded me again of the great privilege and responsibility we all have to protect the rights of every person in this nation.”
Speakers at the White House event, which was attended by invited leadership of the civil rights and law enforcement communities, also included Secretary of Labor Thomas Perez, FBI Director James Comey, Senior Advisor to President Obama, Valerie Jarrett, and Acting Assistant Attorney General of the Civil Rights Divison, Vanita Gupta.
The landmark civil rights legislation was named after Matthew Shepard, a 21-year-old student at the University of Wyoming who was gay, and James Byrd Jr., a 49-year-old African-American man living in Jasper, Texas. Both were brutally murdered in acts of unspeakable intolerance and hate.
The Shepard-Byrd Act, named in their honor, expanded federal hate crimes protections to include sexual orientation, gender, gender identity, and disability. The act also removed unnecessary hurdles to prosecuting hate crimes committed because of race, color, or national origin. It also gave the Justice Department new tools for prosecuting criminals and directed new resources to law enforcement agencies so they could better serve their communities. And it has made it possible for more Americans to live freely and openly, reinforcing our nation’s sacred commitment to equality for all.
Thursday’s event was an opportunity to recognize how the Shepard-Byrd Act has improved our ability to address hate crimes, and the tremendous amount of work that remains.
The Department of Justice also announced several actions to strengthen and improve the federal government’s ability to prevent and respond to hate crimes, including a new series of trainings on the Shepard-Byrd Act around the country for state, local, and tribal law enforcement agencies and community leaders.
In the past five fiscal years (2009-2013), the Department of Justice has charged 201 defendants on federal hate crimes or hate crimes-related charges, including the Shepard-Byrd Act and other federal hate crimes provisions -- an increase of almost 50 percent from the prior five fiscal years (2004-2008). The Department also convicted almost 50 percent more defendants on federal hate crimes or hate crimes-related charges, compared to the prior five fiscal years. The announcements will help federal and state law enforcement to continue to aggressively investigate and prosecute hate crimes nationwide.
Department of Justice Seeks Recovery of Approximately $100,000 in Bribes Paid to Former Chad AmbassadorRead the Press Release
The Department of Justice has filed a civil forfeiture complaint made public late yesterday seeking the forfeiture of $106,488.31 in allegedly laundered funds traceable to a $2 million bribe payment made by a Canadian energy company to Chad’s former Ambassador to the United States and Canada and his wife.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Assistant Director Joseph S. Campbell of the FBI’s Criminal Investigative Division made the announcement.
From 2004 to 2012, Mahamoud Adam Bechir, 49, served as Chad’s Ambassador to the United States and Canada. According to the forfeiture complaint, Bechir agreed to use his position to influence the award of oil development rights in Chad in exchange for $2 million and other valuable interests from Griffiths Energy International Inc., a Canadian company. In order to conceal the bribe, Bechir and his wife, Nouracham Niam, 44, allegedly entered into a series of agreements with Griffiths Energy that provided for the payment of a $2 million “consulting fee” if the company secured the oil rights in Chad. After securing these oil rights in February 2011, Griffiths Energy allegedly transferred $2 million to an account located in Washington, D.C. held by a shell company created by Niam. In 2013, Griffiths Energy pleaded guilty in Canadian court to bribing Bechir.
The complaint further alleges that, after commingling the bribe payment with other funds and laundering these funds through U.S. bank accounts and real property, Bechir transferred $1,474,517 of the criminal proceeds traceable to the bribe payment to his account in South Africa, where he is now serving Chad’s Ambassador to South Africa. The current action seeks forfeiture of $106,488.31, which is the current balance of Bechir’s accounts in South Africa. Those funds have been seized pursuant to the complaint unsealed today. The Department of Justice is also seeking additional assets from Bechir and Niam.
The investigation was conducted by the FBI. The case is being handled by Trial Attorney Nalina Sombuntham of the Criminal Division’s Asset Forfeiture and Money Laundering Section.
This case was brought under the Kleptocracy Asset Recovery Initiative by a team of dedicated prosecutors in the Criminal Division’s Asset Forfeiture and Money Laundering Section, working in partnership with federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where appropriate, return those proceeds to benefit the people harmed by these acts of corruption and abuse of office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
Bechir Motion to Vacate
Bechir Attachment A
Bechir Attachment B
Bechir Complaint
Department of Defense Contractor Sentenced to Thirty Years for Production of Child PornographyRead the Press Release
Tampa, Florida– U.S. District Judge Mary S. Scriven has sentenced Michael C. Vella (36, Riverview) to 30 years in federal prison for producing child pornography. He pleaded guilty on June 20, 2014.
According to the plea agreement, a 16-year-old female reported to law enforcement that Vella had been forcing her to have sex with him since the middle of 2012. She also disclosed that Vella had, on at least one occasion, used his laptop computer to record their encounter. The video was recorded in a hotel room when he transported the victim to the Orlando area. At the time the arrest warrant was issued, Vella was deployed to Afghanistan as a Department of Defense contractor.
This case was investigated by the Federal Bureau of Investigation and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Stacie B. Harris.
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 (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Civilian Pleads Guilty to Conspiring with Corrupt Police Officers in July 2012 Robbery in Bayamon, Puerto RicoRead the Press Release
A Puerto Rican man has pleaded guilty to conspiring with corrupt police officers to commit a July 2012 robbery of a home in Bayamon, Puerto Rico, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico.
Fernando Reyes-Rojas, 43, of the Dominican Republic, pleaded guilty on Nov. 6, 2014, to violations of robbery, civil rights, narcotics, and firearms laws. Reyes-Rojas is the sixth defendant convicted in connection with the July 2012 robbery. Reyes-Rojas’s sentencing is scheduled for Feb. 4, 2015.
According to court documents, Reyes-Rojas, a civilian, agreed with at least three corrupt Police of Puerto Rico (POPR) officers and others to participate in a home robbery to steal money and narcotics.
On July 14, 2012, Reyes-Rojas joined the corrupt police officers and others in robbing a house in Bayamon. The men entered the house, identified themselves as police, and falsely claimed they were executing a search warrant. After searching the property and the people who were present, they stole money and cocaine. Reyes-Rojas sold the cocaine and paid the officers for their role in the robbery.
The corrupt police officers and a second civilian previously pleaded guilty for their participation in the July 2012 robbery. On Oct. 7, 2014, Jorge Fernandez-Aviles, 49, a POPR sergeant, pled guilty to robbery and firearms charges. On Oct. 3, 2014, David Figueroa, a civilian, pled guilty to robbery and civil rights charges. Alexander Mir-Hernandez, 40, a POPR officer, also pleaded guilty to one count of false statements for lying to federal agents about his role in the July 2012 robbery and to a civil rights crime for an unrelated December 2013 robbery. Sentencing for all three is scheduled for Jan. 9, 2015. Pedro Lopez-Torres, 35, and Luis Ramos-Figueroa, 38, both POPR officers, were each charged by information on June 25, 2014, for their roles in the July 2012 robbery and other crimes. Lopez- Torres and Ramos-Figueroa pleaded guilty before U.S. District Judge José A. Fusté the same day.
This case was investigated by the FBI’s San Juan Division. The case is being prosecuted by Trial Attorneys Heidi Boutros Gesch and Brian Kidd of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Mariana Bauza of the District of Puerto Rico.
Buffalo Man Pleads Guilty to Drug and Gun ChargesRead the Press Release
BUFFALO, N.Y. B U.S. Attorney William J. Hochul, Jr. announced today that George Torres, 52, of Buffalo N.Y., pleaded guilty to unlawfully possessing with intent to distribute more than 200 grams of heroin and possessing a firearm in furtherance of drug trafficking before U.S. District Judge Richard J. Arcara. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, a $5,000,000 fine, or both.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that on November 13, 2012, Buffalo Police and the FBI executed a search warrant at the defendant=s residence at 55 Garner Avenue in Buffalo. During the search, law enforcement officers seized over 200 grams of heroin, three handguns, and $368,000 in United States currency.
The criminal complaint is the culmination of an investigation by members of the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, Special Agents of the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge James S. Higgins.
Sentencing is scheduled for February 24, 2015 at 1:00 p.m. before Judge Arcara.Belleville Man Sentenced for Child Pornography and Drug Related OffensesRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that on November 7, 2014, Daris A. Quinn, a/k/a “DQ,” 26, of Belleville, Illinois, was sentenced on three counts of a four-count Indictment (One count was dismissed at sentencing). On Count 2, charging Possession of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, the Court sentenced Quinn to 80 months in federal prison. The Court sentenced Quinn to 21 months in federal prison on Count 3, Using a Communication Facility to Facilitate a Drug Transaction, and Count 4, Making a False Statement to a United States Postal Inspector, to run concurrently to each other, but consecutively to Count 2, for a total term in federal prison of 101 months. The Court ordered Quinn to serve a five (5) year term of supervised release on Count 2, a one (1) year term of supervised release on Count 3, and a three (3) year term of supervised released on Count 4, all to run concurrently, for a total term of supervised release of five (5) years. The Court also ordered Quinn to pay a fine of $150 on each count, for a total fine of $450, and a $300 special assessment. Quinn has been held without bond since his arraignment on a criminal complaint on May 30, 2013.
The offense in Count 2 was revealed on October 19, 2011, when Quinn’s cellular telephone was seized during the search of a residence where Quinn was present. A forensic examination of Quinn’s cellular telephone revealed videos taken by Quinn of a minor performing oral sex on Quinn in both his car and inside the minor’s home. The minor was fifteen years old at the time the videos were made; Quinn was 23.
With respect to Count 3, the forensic examination of Quinn’s cellular telephone also revealed that Quinn had used his cellular telephone, a communication facility, between on or about August 19, 2011 and October 10, 2011, to facilitate the distribution of controlled substances between himself and an individual located in Oakland, California. Text messages found on the telephone discussed, among other things, the amount of drugs to be shipped, the location of where to ship the drugs, and ways to disguise the smell of the drugs to be shipped so that the narcotics-sniffing canines would not detect them.
Finally, the offense charged in Count 4 occurred on or about February 26, 2013, during the investigation of a suspicious package by the United States Postal Inspection Service. The package was addressed to an individual in California. It listed a return address in Collinsville, Illinois, but did not provide a name. A search warrant was obtained to open the package after a narcotics-sniffing dog alerted on it. Inside the package was $23,650 in United States Currency. United States Postal Inspectors posed as postal workers to see if anyone would claim the package. A few days later, Quinn, identifying himself by a false name, arranged to come to the post office in Collinsville, Illinois, to pick up the package. Quinn continued to provide this false name to the Postal Inspector who interviewed him regarding the package. After initially lying about the contents of the package, Quinn told the Postal Inspector that he was sending the money to a friend so his friend could buy a car. Quinn then stopped talking and left when confronted with the search warrant and a photograph of the contents of the package. When the Postal Inspectors tried to stop the vehicle that he was riding in, Quinn jumped out and fled. The Postal Inspectors did not learn Quinn’s true identity until after he was eventually caught and taken to the Collinsville Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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.”
The case was investigated by the Collinsville Police Department, the United States Postal Inspection Service and the Federal Bureau of Investigation’s Springfield Child Exploitation Task Force. The case was assigned to Assistant United States Attorney Angela Scott.
Beatrice Man Sentenced for Possession of Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Terry L. Dill, 31, formerly of Beatrice, Nebraska, was sentenced on November 7, 2014, in Lincoln, Nebraska, to 70 months in prison by United States District Judge John M. Gerrard, for possession of child pornography. After his release from prison, Dill will be required to serve a 5 year term of supervised release and be registered as a sex offender.
Dill came to the attention of law enforcement after Dropbox, Inc., a file hosting service that offers cloud storage, reported possible child pornography in one of their customer’s files to the National Center for Missing and Exploited Children (NCMEC). NCMEC then provided the information to the Nebraska State Patrol, who obtained and executed search warrants on Dill’s residence, a computer tablet of Dill’s, and his Dropbox account. Investigators found digital files containing 966 sexually explicit pictures and 116 sexually explicit videos of children under the age of 13.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Nebraska State Patrol and Beatrice Police Department.
Attorney General Holder Announces Stuart Delery Will Serve as the Department of Justice Designee as Co-Chair of the President’s Task Force on Puerto RicoRead the Press Release
Attorney General Eric Holder announced today that Stuart Delery, the Acting Associate Attorney General, will serve as the Department of Justice’s designee as Co-Chair of the President’s Task Force on Puerto Rico.
“Stuart Delery is an exceptional public servant who will continue the work of his predecessors, Tom Perrelli and Tony West, as Co-Chair of the President’s Task Force on Puerto Rico,” said Attorney General Holder. “Stuart demonstrated his commitment to strengthen our nation’s security and to protect public health and safety in his prior role as Assistant Attorney General for the Civil Division. Stuart will serve the Task Force – and the people of Puerto Rico – well.”
“The ongoing work of the Task Force reflects the Administration’s – and the Department of Justice’s – commitment to the people of Puerto Rico,” said Associate Attorney General Delery. “I am pleased to have the opportunity to contribute to the Task Force, and look forward to working with my federal colleagues and Commonwealth officials in Puerto Rico and Washington.”
The President’s Task Force on Puerto Rico, which is co-chaired by the Attorney General’s designee and the White House Director of Intergovernmental Affairs, was created by President Bill Clinton to examine Puerto Rico’s political status and to identify a process by which the people of Puerto Rico could express their views on the subject. The Task Force continued to address these issues through the Administration of President George Bush. President Barack Obama expanded the Task Force’s scope and directed it to recommend policies to promote job creation, education, health care, clean energy, and economic development on the island. The Task Force published its report and recommendations to the President and Congress in March of 2011, and its efforts to implement the recommendations continue today.
Air Conditioner Thief Sentenced to 31 Months for Violating Clean Air ActRead the Press Release
COLUMBUS – Martin C. Eldridge III, 35, of Columbus, was sentenced in U.S. District Court to 31 months in prison, 280 days of which has already been served, for violating the Clean Air Act when he cut the tubing on air conditioning units he was stealing and released a regulated refrigerant into the environment.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Randall K. Ashe, Special Agent in Charge of the U.S. Environmental Protection Agency (U.S. EPA), Franklin County Prosecuting Attorney Ron O’Brien and Columbus Police Chief Kim Jacobs announced the sentence handed down today by U.S. District Senior Judge James L. Graham.
According to court documents, Eldridge and others stole at least 49 air conditioner units between August and October 2013 in order to sell the copper and parts from the units at scrap yards. When he cut the tubing that connected the air conditioner to the business or residence, a refrigerant known as HCFC-22 was released. The refrigerant is regulated under the Clean Air Act because it poses a significant threat to the Earth’s ozone layer. HCFC-22 is also known as R-22 and sold under the trade names of Freon, Genetron, Arcton and Forane.
Eldridge pleaded guilty in June to one count of knowingly venting HCFCs into the environment. He was also sentenced to 3 years supervised release.
Eldridge will serve the federal sentence concurrent with his state sentence on the theft charges. Eldridge has been in state custody since October 2, 2013. Following prison time, Eldridge will be under court supervision for 12 months during which time he must perform 200 hours of community service.
“The defendant's repeated theft of air conditioners and subsequent release of refrigerant into the atmosphere was illegal and a clear violation of the Clean Air Act,” said Randall K. Ashe, Special Agent in Charge of EPA's criminal enforcement program in Ohio. “Today's sentence reflects U.S. EPA's commitment to protecting the ozone layer and the communities impacted by the defendant’s illegal conduct."
U.S. Attorney Stewart said this is the first federal case of its kind in the Southern District of Ohio. He commended the cooperative investigation by the Columbus Division of Police and U.S. EPA and the scrap metal theft task force, as well as Assistant U.S. Attorney J. Michael Marous and Special Assistant U.S. Attorneys Heather B. Robinson with Franklin County Prosecutor O’Brien’s Office and Brad Beeson with the U.S. EPA, who prosecuted the case.
Abington Man Charged with Social Security FraudRead the Press Release
BOSTON – Mark Gardner, 56, of Abington, was indicted in U.S. District Court in Boston on theft of public money. The indictment alleges that from July 2009 to January 2014, Gardner stole $65,311 in Social Security benefits.
The charging statute provides a sentence of no greater than ten years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. The case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
10th Street Gang Member Sentenced for RICO Conspiracy Involving a MurderRead the Press Release
Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that 10th Street Gang member Miguel Moscoso, 23, of Buffalo, NY, who was convicted of Racketeering Influenced Corrupt Organizations (RICO), was sentenced to 30 years in prison by U.S. District Judge Richard J. Arcara. The defendant murdered Christian Portes, a member of the rival 7th Street Gang, on June 13, 2009 at the corner of Whitney Place and Maryland Street.
“Today's sentence - like others issued in this case - demonstrates that those who engage in gang activity pay a heavy price upon conviction,” said U.S. Attorney Hochul. “This Office will continue to relentlessly pursue such criminals until they no longer pose a threat to the residents of this community.”
Assistant U.S. Attorney Joseph M. Tripi, who handled the case, stated that between 2008 and September 2010, the defendant was a member of the 10th Street Gang. As a part of his involvement in the gang, the defendant, along with other members and associates of the gang, committed violence, possessed firearms, and sold marijuana, cocaine, crack cocaine, and other controlled substances on the West Side of Buffalo.
Moscoso is among 44 10th Street Gang members and associates convicted in this case.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, the New York State Police, under the direction of Major Michael Cerretto, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge James S. Higgins, New York Field Division.
Thursday 6 November 2014
“Enforcer” for Cherry Hill Group UDH Pleads Guilty to Racketeering Conspiracy for his Participation in Gang ActivitiesRead the Press Release
Baltimore, Maryland – Antione White, age 26, of Baltimore, pleaded guilty today to conspiracy to participate in a racketeering enterprise in connection with his gang activities as a member of the UDH organization, which operates in the Cherry Hill section of Baltimore.Co-defendant and fellow UDH member Bryan Turner, age 29, of Baltimore, pleaded guilty to conspiracy to distribute and possess with intent to distribute crack cocaine and heroin on November 5, 2014.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to their plea agreements, White and Turner are members of the UDH organization, which operates in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.” UDH members and associates have been in a long-running dispute with members of an organization known as “Coppin Court” that is involved in criminal activity in the part of Cherry Hill known as “Down the Hill,” and since at least January 2011, have been in a dispute with members of “Little Spelman,” another organization that is involved in criminal activity in the Down the Hill section of Cherry Hill. UDH members and associates used violence and intimidation to protect themselves, the organization, and their control of the drug trade in part of Cherry Hill.White was known as an “enforcer” in the UDH group who was responsible for committing robberies on behalf of the group, possessing firearms and shooting at rivals. White admitted that he committed armed robberies with fellow UDH members and possessed firearms which were used by the UDH organization to shoot rivals and protect their territory. On May 25, 2012, White was pulled over while driving a vehicle with his girlfriend and two other UDH members. Officers found a 380 semi-automatic handgun loaded with five 9mm rounds with an obliterated serial number under the driver’s seat. Ballistics comparisons revealed that this gun matched the cartridge casings recovered from the May 11, 2012 scene of the shooting of Little Spelman member Warren Jones a/k/a Pluck, in the 800 block of Bridgeview Road in Cherry Hill.
On August 5, 2011, Turner participated in the robbery of the Chesapeake Bank of Maryland in Arbutus, along with other UDH members. Turner and others went into the bank and presented the teller with a note demanding money. Turner and his associates stole $7,305, which was later divided between Turner and three other UDH members.
White and Turner admitted that as members of UDH they also sold crack cocaine, heroin and other narcotics with UDH members. They sold the drugs from a house located on Giles Road, in the UDH area of Cherry Hill. At one point, Turner even lived in the residence. In addition to selling drugs from this location, White and others stored firearms at the house, which were used communally by other UDH members. On March 8, 2011, officers executed a search warrant at a residence in the 2900 block of Cherryland Road. Turner and other UDH members were arrested and law enforcement recovered $105 from the toilet, where a UDH member had attempted to flush it; a backpack with 406 vials containing almost 25 grams of crack cocaine; drug paraphernalia and packaging material. Officers recovered $192 in cash and two Percocet pills from Turner. On January 18, 2013, Baltimore City Police arrested White and other UDH members at the Giles Road residence and seized cocaine, drug paraphernalia and a loaded gun.
During their participation in the UDH drug conspiracy, White and Turner were each responsible for distributing in excess of 280 grams of crack cocaine. Turner was also responsible for distributing more than a kilogram of heroin.
Turner faces a minimum of 10 years and a maximum of life in prison for the drug conspiracy. White and the government have agreed that if the Court accepts the plea agreement White will be sentenced to between 15 and 20 years in prison. U.S. District Judge George L. Russell III has scheduled sentencing for Turner on May 15, 2015 at 9:30 a.m. and for White on February 20, 2015, at 11:00 a.m.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith and Seema Mittal, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
What Cheer Man Sentenced for Taking and Possessing a Bald EagleRead the Press Release
DES MOINES, IA - On November 6, 2014, Jason John Thomas, age 36 of What Cheer, Iowa, was sentenced by District Court Judge John A. Jarvey to 60 days imprisonment for taking and possessing a bald eagle, announced United States Attorney Nicholas A. Klinefeldt. Thomas was ordered to serve one year of supervised release following the imprisonment, pay a $2,000 fine, and pay $25 toward the Crime Victim Fund. Special conditions of the supervised release include that Thomas shall perform 80 hours of community service, and shall not engage in any form of hunting.
On March 16, 2011, Thomas took and possessed a bald eagle in rural Mahaska County. During a boat ride, Thomas saw the bald eagle on a bluff above the river. Thomas pursued the eagle as it flew down river, captured it after it landed in the river, and then struck and killed the bald eagle.
The investigation was conducted by the United States Fish and Wildlife Service, and the Iowa Department of Natural Resources. The case was prosecuted by the United States Attorney's Office for the Southern District of Iowa.
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West Grove Resident Charged with Illegal ReentryRead the Press Release
Francisco Javier Rodriguez-Ortiz, a/k/a “Francisco Rodriguez,” a/k/a “Roberto Rodriguez,” a/k/a “Roberto Zavala-Ortiz,” 30, of West Grove, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about September 7, 2014, Rodriguez-Ortiz, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about January 9, 2008.
If convicted the defendant faces a maximum possible sentence of 20 years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Andrea Foulkes.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Wauneta, Nebraska Man Sentenced to 70 Months Imprisonment for Receiving Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Richard E. Cooley, 61, of Wauneta, Nebraska was sentenced in the United States District Court in Lincoln, Nebraska for receiving child pornography. The Honorable John M. Gerrard sentenced Cooley to a 70 month term of imprisonment. There is no parole in the federal prison system. After his release from prison Cooley will begin a seven year term of supervised release.
Cooley received a thumb drive containing 26 videos and 400 images of child pornography in August 2013. The victims were as young as 3 years old and involved a number of prepubescent minors. He received the child pornography from Gerald Vrbas who was previously sentenced to fifteen years in prison for producing child pornography.
This case was investigated by Homeland Security Investigations with the assistance of the North Platte Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Waterbury Pcp Dealer Sentenced to More Than 5 Years in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SHAUN JAMES, 45, of Waterbury, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 65 months of imprisonment, followed by four years of supervised release, for distributing PCP.
According to court documents and statements made in court, on December 14, 2012, officers with the DEA’s New Haven Task Force conducted a court-authorized search of JAMES’s apartment on Pearl Lake Road in Waterbury, where they found several containers of liquid PCP and materials used to package the drug for distribution. Officers also recovered a loaded .44 caliber revolver, an additional box of ammunition and approximately $28,500 in cash. JAMES was arrested on that date.
JAMES has been detained since his arrest. On May 28, 2014, he pleaded guilty to one count of possession with the intent to distribute 100 grams or more of Phencyclidine (“PCP”).
The seized cash and firearm were forfeited.
This case was investigated by the DEA’s New Haven Task Force with the assistance of the Waterbury Police Department. The case was prosecuted by Assistant U.S. Attorney Michael E. Runowicz.
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[email protected]Urbana Man Charged with Sexual Exploitation of A MinorRead the Press Release
Springfield, Ill. – Jim Lewis, U.S. Attorney for the Central District of Illinois, announced today that a federal grand jury in Springfield has returned an indictment charging Talon G. Wright, 38, of the 900 block of East Harding St, Urbana, Ill., with two counts of sexual exploitation of a minor and one count of possession of child pornography.
The indictment alleges that on or about Dec. 24, 2011 and again on Jan. 15, 2012, Wright used and coerced a minor to engage in sexually explicit conduct for the purposes of producing visual images of said conduct. The indictment further alleges that on Aug. 1, 2014, Wright possessed computer devices containing child pornography.
If convicted, the statutory penalty for each count of sexual exploitation of a minor is 15 to 30 years in prison plus a fine of up to $250,000. The penalty for possession of child pornography is up to 10 years in prison plus a fine up to $250,000. Wright may also be sentenced to a term of supervised release up to life following any prison sentence.
Wright was arrested on Oct. 27, 2014 and charged in a criminal complaint. Wright appeared before U.S. Magistrate Judge David G. Bernthal, on Oct. 27, and was ordered to remain detained in U.S. Marshals Service custody.
The case is being prosecuted by Assistant U.S. Attorney Elly M. Peirson. The charges are the result of an investigation by the Urbana Police Department and U.S. Immigration and Customs Enforcement Homeland Security Investigation, in cooperation with the office of Champaign County State’s Attorney Julia Reitz, and the Illinois Department of Children and Family Services.
Wright is scheduled to appear for arraignment before U.S. Magistrate Judge Bernthal on Nov. 12, at 3:00 p.m., in Urbana.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys= Offices and the Criminal Division=s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
# # # #Union County Resident Sentenced to 110 Months in Prison for Possession of a Firearm by a Convicted FelonRead the Press Release
COUNCIL BLUFFS, IA - On November 5, 2014, Peter James Wiley, a 33 year-old resident of Creston, Iowa, was sentenced by United States District Court Judge John Jarvey to 110 months in prison, to be followed by three years of supervised release, for possession of firearm by a convicted felon, announced United States Attorney Nicholas A. Klinefeldt.
Wiley was identified as a person of interest in a shooting that occurred in Page County, Iowa, early in the evening of December 10, 2013. Several hours later, Wiley was identified as a suspect in a shooting that occurred in Adams County, Iowa. Wiley was located by Creston, Iowa Police, early in the morning of the 11th of December 2013, when he was observed driving a car that failed to stop for a stop sign. A pursuit occurred which culminated with Wiley setting his vehicle on fire, fleeing his vehicle on foot, and running into a farm field. As he fled on foot, he dropped a forty caliber semi-automatic handgun onto the roadway. He was arrested a short time later after being located by a K-9 unit. Wiley pled guilty to the charge on June 5, 2014.
The investigation was conducted by the Shenandoah, Iowa, Police Department, the Creston, Iowa, Police Department, the Page County Sheriff’s Office, the Adams County Sheriff’s Office, the Iowa Division of Criminal Investigation, the Iowa Division of Narcotics Enforcement, and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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U.S. Department of Justice Holds Two-Day "Fair and Impartial Policing" Training for St. Louis County Law EnforcementRead the Press Release
***MEDIA ADVISORY***
COPS Office to Hold Media Availability on Fair and Impartial Policing on Friday, Nov. 7, 2014
The Office of Community Oriented Policing Services (COPS Office) is holding a Fair and Impartial Policing training on Thursday, Nov. 6, and Friday, Nov. 7, with local law enforcement as part of the Collaborative Reform Initiative and technical assistance taking place in St. Louis County. The two-day Fair and Impartial Policing training will include command-level law enforcement leadership from St. Louis County, St. Louis Metropolitan, Missouri Highway Patrol and Ferguson, Missouri, Police Departments, as well as local community members. The training is closed press; however, there will be a media availability on Friday at the conclusion of the training session.
This latest effort to build trust and strengthen the relationship between law enforcement and the communities they serve is the first of several regional collaborative reform trainings on law enforcement strategies and best practices. Under the COPS Collaborative Reform Initiative for Technical Assistance (CRI-TA), the COPS Office provides intensive, comprehensive assessment and support to agencies experiencing significant systemic challenges. The Fair and Impartial Policing training is specifically designed to enhance officers' understanding of how bias — including implicit or unconscious bias — affects officer behavior, and the impact that biased policing has on officers and the community. Subsequent training sessions will focus on educating first-line supervisors and police trainers as a way to integrate these concepts into day-to-day police practices.
This training session will be led by Dr. Lorie Fridell, a national expert on racially biased policing, and Noble Wray, a retired Chief of Police from the Madison, Wisconsin, Police Department.
WHO: Ronald L. Davis, Director of the COPS Office at the U.S. Department of Justice
Dr. Lorie Fridell, Fair and Impartial Policing technical assistance expert and associate professor at the University of South Florida’s Department of Criminology
Noble Wray, Fair and Impartial Policing technical assistance expert and retired police chief for the Madison, Wisconsin, Police Department
WHAT: Media Availability on Fair and Impartial Policing in St. Louis County
WHEN: Friday, November 7, 2014, at 1:30 p.m. CST
WHERE: Maryville University-Southwest Campus, Liberty Mutual Building at 12250 Weber Hill Road, Sunset Hills, Missouri 63127
NOTE: All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. For additional questions, please email [email protected] or call 202-514-2007.
Additional Background on Collaborative Reform: In August, following the shooting of Michael Brown, President Obama asked Attorney General Holder to send Director Davis to work with police officials on the ground in Ferguson to help reduce tensions and build trust. Under the COPS CRI-TA, the COPS Office provides more intensive, comprehensive assessment and technical assistant support for agencies experiencing significant systemic challenges. Collaborative Reform is an independent and objective means to organizational transformation through an analysis of policies, practices, training, tactics and accountability methods around key issues facing law enforcement agencies. Along with Critical Response, Collaborative Reform has become a fundamental part of the department’s overall continuum of services to advance community policing and ensure police agencies engage in constitutional practices. Currently, the COPS Office is engaged with several law enforcement agencies across the country, including the St. Louis County Police Department, as a way to advance widespread reform across the St. Louis region.
U.S. Attorney’s Office Announces Alan Mizen to Plead Guilty in Center Township Public Corruption CaseRead the Press Release
Township Chief Financial Officer embezzled over $343,000 in Public Money
INDIANAPOLIS - Acting United States Attorney, Josh J. Minkler announced today that Alan Mizen, 59, the former Chief Financial Officer for Center Township, Marion County, IN. will plead guilty to federal public corruption charges. The information charging theft from programs receiving federal funds and Mizen’s plea agreement were filed today.
"The public deserves to have public officials whom they can trust to do the right thing,” said Minkler. “When that trust is betrayed, be assured, the United States Attorney’s Office will hold them accountable. The agreement and charges filed today accomplish that goal.”
According to court documents, on June 10, 2010, Mizen signed on to the computer system for Center Township and created an invoice for a check in the amount of $343,541.08 which was purportedly payable to the Treasurer of the State of Indiana. On June 16, 2010 he wrote a check for the same amount from the Center Township’s bank account to “Attorney’s General Clearing Tr.” Mizen signed the check and deposited it into a new account he had created at PNC Bank.
Mizen then transferred the funds that he deposited into the PNC Bank account to various personal accounts that he maintained. From the personal accounts, Mizen used over $200,000 to help purchase a residence in Zionsville, purchase a Toyota Tacoma pickup truck, fund his child’s college education, finance personal vacations, purchase a diamond necklace and diamond ring for $8,900 during a trip to the Cayman Islands, and make other consumer purchases. Mizen’s used taxpayer funds to finance these personal expenditures from June 10, 2010 through July 2012.
Mizen must make pay restitution for the full amount of $343,541 to Center Township. In his signed plea agreement, Mizen agrees to use the proceeds of the previously seized assets, to pay the restitution amount.
Minkler explained this case was the result of outstanding law enforcement work by the Federal Bureau of Investigation, Indiana State Board of Accounts and the Internal Revenue Service. All three agencies are partners in the U.S. Attorney's Public Integrity Working Group, which was launched in April 2012 with the stated purpose of aggressively investigating allegations of public fraud, waste and abuse by public officials in Indiana. Anyone with information on public corruption is encouraged to contact the U.S. Attorney's Office at (317) 229-2443.
Federal Bureau of Investigation Special Agent in Charge W. Jay Abbott said, “Citizens are owed integrity at all levels of government.”
Internal Revenue Service Criminal Investigation Special Agent in Charge James C. Lee stated, “When public officials commit crimes, whether as part of their official duties or in their private lives, they are violating the public trust. IRS-Criminal Investigation helps ensure that all Americans, including public officials, are held to the same standard.”
According to Senior Litigation Counsel, Bradley A. Blackington, who is prosecuting the case for the government, Mizen could be sentenced to up to ten years in federal prison, pay a $250,000 fine and serve three years of federal supervised release.
No sentencing date has been set.
U.S. Attorney, Caddo Sheriff, Shreveport Police, Caddo School Board Join Together to Debut New Tool Teaching Firearm Safety to Students in the Western DistrictRead the Press Release
New demonstration trailer housed in Caddo Parish
SHREVEPORT, La. –United States Attorney Stephanie A. Finley joined by Caddo Parish Sheriff Steve Prator, Shreveport Police Chief Willie Shaw and Caddo Parish School Board Superintendent Dr. Theodis Lamar Goree, Jr., debuted the newest tool available to law enforcement to teach firearm safety to children in the Western District of Louisiana.
Students at Werner Park Academy were the first to see the Western District’s new firearm safety trailer in operation today. The trailer is available for use as part of the Louisiana Law Enforcement Gun Safety Program to teach firearm safety to children at area schools. Since its inception in June of 2013, the program has reached approximately 22,100 children.
Until last month, there was only one safety trailer available for use statewide. Now there is a trailer in each of the three federal judicial districts in Louisiana - Western, Middle and Eastern. After Caddo Parish Sheriff Steve Prator agreed to provide space for the training trailer, the Western District was able to launch its program. The Caddo Parish Sheriff’s Office now houses the trailer, which is available for law enforcement agencies in the District to use. Forty-two of the state’s 64 parishes are in the Western District.
The Louisiana Law Enforcement for Gun Safety Program was created in response to the alarmingly high rate of accidental firearm injuries and deaths among children in Louisiana. The program uses certified law enforcement officers to teach parents and children about gun safety through an interactive presentation involving live demonstrations. The program demonstrates the dangers of firearms and tests students’ knowledge of gun safety. The instructors show students various handguns and ask them if the weapons are real or toys. The students in many cases are unable to distinguish between real or toy guns because many toy guns look, feel and weigh the same as real ones. At the end of the program, students are shown the destructive capacity of guns by watching a pistol fire a bullet into a watermelon inside of a protective enclosure. Students are instructed that weapons must be handled safely and with adult supervision.
The program aims to identify the hazards of unsecured firearms, teach individuals how to secure firearms, identify distinguishing characteristics between real and toy guns, and illustrate the destructive force of firearms through the use of the demonstration trailer. Presentations are conducted at schools, camps and community events.
“The U.S. Attorney’s Office is proud help usher in the next step of this program,” Finley said. “We will now be able to reach even more schools and students using this new trailer. Children’s safety in the Western District of Louisiana is of the utmost concern for this office. The Gun Safety Program helps educate students on how to react when finding a gun. I would like to thank all law enforcement who have joined this effort to keep children safe. This program will save lives.”
“The Caddo Sheriff’s Office looks forward to making the Louisiana Law Enforcement for Gun Safety Program available to the citizens of Caddo Parish,” said Caddo Parish Sheriff Steve Prator. “The accidental injury or death of a child due to firearms is a terrible tragedy and one we hope to prevent by educating children and their parents about the safe handling and storage of weapons. We’ve been successful with presenting this message to elementary-age students at Sheriff’s Safety Town and are excited to have a tool to now reach out to older children and adults.”
“Having seen firsthand the tragic results of accidental firearm injuries, we are well aware of the critical need to teach our children about gun safety and this unique, interactive educational program is the perfect opportunity to partner with other law enforcement entities in a proactive effort to keep our kids safe,” said Shreveport Police Chief Willie Shaw.
“Each day in Caddo Parish Public Schools we work to better students not only academically, but to ensure their safety and security and provide life skills needed to foster vibrant community members,” said Caddo Parish Superintendent Dr. Theodis Lamar Goree, Jr. “This program is a powerful tool to educate our students on the dangers of firearms and will translate into positive results for our youth. We are grateful for this partnership with the U.S. Attorney’s Office as well as the Caddo Parish Sheriff’s Office and Shreveport Police, and their desire to begin this program right here at Werner Park Elementary.”
The program is available for use by all law enforcement agencies in Louisiana through the endorsements of the U.S. Attorney’s Offices for the Western, Middle and Eastern districts, Caddo Parish Sheriff’s Office, Baton Rouge City Constable’s Office, Louisiana Department of Corrections, Louisiana Sheriff’s Association, Louisiana Association of Chiefs of Police, Louisiana City Marshals and City Constables Association, Louisiana District Attorneys Association, Louisiana State Police, and the Louisiana Attorney General’s Office.
The U.S. Attorney’s Office Law Enforcement Community Coordinator Mike Campbell is conducting the training and is assisting with the operation of the program in conjunction with the Caddo Parish Sheriff’s Office. As LECC, Campbell acts as a liaison between the U.S. Attorney=s Office and local, state, and federal law enforcement. He assists with grants, coordinates and provides law enforcement training, and assists law enforcement agencies with special and community needs.
For more information about the firearms safety program, contact Mike Campbell at the U.S. Attorney’s Office at 318-676-3600 or Mike Gregory at the Caddo Parish Sheriff’s Office at 318-681-1106.
Two Air Traffic Controllers at JFK Arrested After Stealing Time from the Federal Aviation Administration for More Than 3 YearsRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Asif Ali and Jeffrey Evagues with stealing more than $165,000 from the Federal Aviation Administration (FAA) by modifying payroll system entries to indicate that they were working when they were not. Ali and Evagues were arrested earlier today in South Ozone Park, Queens, and Manorville, Long Island, respectively. Their initial appearance is scheduled for this afternoon before United States Magistrate Judge Viktor V. Pohorelsky at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Douglas Shoemaker, Special Agent in Charge, United States Department of Transportation, Office of Inspector General, New York Regional Office.
As alleged in the complaint, between September 2011 and October 2014, FAA Air Traffic Controllers Ali and Evagues modified labor distribution reports on more than 300 occasions to indicate and get paid as if they were controlling air traffic at JFK when, in fact, they were taking vacation time, sick leave, or regular days off. Security camera footage captured both defendants entering the room that contains the computer from which payroll changes occurred, just minutes prior to when modifications were implemented.
“For three years, these air traffic controllers engaged in a high flying scheme to redirect public funds into their own bank accounts. Today they were grounded,” stated United States Attorney Lynch. “This office and its law enforcement partners are committed to ensuring that government employees act with the degree of integrity that the public expects and deserves.”
“The arrest of Mr. Asif Ali and Mr. Jeffrey Evagues for allegedly stealing time from the FAA is a clear signal that Federal employees will be held responsible for maintaining the highest level of integrity,” stated Douglas Shoemaker, DOT OIG Regional Special Agent in Charge. “Working with our law enforcement peers and prosecutorial colleagues, we will continue our vigorous efforts to protect the taxpayers’ investment in our nation’s transportation system from fraud, waste, abuse, and violations of law.”
The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Special Assistant United States Attorney Jonathan P. Lax.
The Defendants:
ASIF ALI
Age: 38
South Ozone Park, New York
JEFFREY EVAGUES
Age: 54
Manorville, New York
E.D.N.Y. Docket No. 14-MC-917
Three Subsidiaries of the World’s Largest Fertilizer Producer to Reduce Harmful Air Emissions at Eight Production PlantsRead the Press Release
In a settlement with the United States, three subsidiaries of the Potash Corporation of Saskatchewan (PCS), the world’s largest fertilizer producer, will take steps to reduce harmful air emissions at eight U.S. production plants, the U.S. Environmental Protection Agency (EPA) and Department of Justice announced today. The settlement resolves claims that these PCS subsidiaries violated the Clean Air Act when they modified facilities in ways that released excess sulfur dioxide into surrounding communities.
The settlement requires PCS Nitrogen Fertilizer, AA Sulfuric Inc., and White Springs Agricultural Chemicals Inc. to install, upgrade and operate state-of-the-art pollution reduction measures, as well as install emissions monitors at eight sulfuric acid plants across facilities in Geismar, Louisiana (one plant), White Springs, Florida (four plants), and Aurora, North Carolina (three plants). The three companies will spend an estimated $50 million on these measures, and will pay a $1.3 million civil penalty.
“This agreement, the largest so far in our ongoing Clean Air Act enforcement efforts against sulfuric-acid producers, will ensure cleaner air for citizens across the Southeast and will send a strong signal to the industry that noncompliance has serious consequences,” said Acting Assistant Attorney General Sam Hirsch for the Department of Justice’s Environment and Natural Resources Division.
“Large industrial facilities that break the law and pollute the air will be held accountable,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “This case will bring these companies into compliance and require additional action to cut pollution to benefit communities, especially those most vulnerable to air pollution.” EPA expects the actions that the companies have agreed to take will reduce harmful emissions by over 13,090 tons per year, which includes approximately 12,600 tons per year of sulfur dioxide, 430 tons per year of ammonia and 60 tons per year of nitrogen oxide. In the future, the companies can also retire plants to comply with the settlement.
The settlement also includes a “supplemental environmental project,” estimated to cost between $2.5 and $4 million, to protect the community around a PCS Nitrogen nitric acid plant in Geismar, Louisiana, and requires PCS Nitrogen to install and operate equipment to reduce emissions of nitrogen oxide and ammonia. This project is part of EPA’s commitment to advancing environmental justice by reducing the disproportionate environmental impacts on communities near industrial facilities – in this instance, by reducing fine particulates that can aggravate respiratory disease.
Sulfur dioxide, the predominant pollutant emitted from sulfuric acid plants, has numerous adverse effects on human health and is a significant contributor to acid rain, smog and haze. Sulfur dioxide—along with nitrogen oxide—is converted in the air to particulate matter that can cause severe respiratory and cardiovascular impacts, and premature death.
This settlement is part of EPA’s national enforcement initiative to control harmful emissions from large sources of pollution, which includes acid production plants, under the Clean Air Act’s Prevention of Significant Deterioration requirements. It is the 10th settlement reached under EPA’s National Acid Manufacturing Plant Initiative and the 7th settlement addressing pollution from sulfuric acid plants. Today’s settlement covers more sulfuric acid production capacity—roughly 24,000 tons per day or approximately 14 percent of total U.S. capacity—than all previous sulfuric acid settlements under this initiative combined.
The settlement also resolves alleged violations based on Louisiana law at the Geismar, Louisiana, facility, and the Louisiana Department of Environmental Quality will receive $350,000 of the $1.3 million penalty.
The settlement was lodged with the U.S. District Court for the Middle District of Louisiana and is subject to a 30-day public comment period and final court approval.
Three People Indicted in Trans-Continental Marijuana ConspiracyRead the Press Release
BOSTON – Three men were arrested today for conspiracy to distribute and possess more than 1,000 kilos of marijuana.
In an indictment unsealed today, Michael Gordon, 45, and Andrean Jaggon, 37, both of Randolph and Dagoberto Olea, 43, of Mendocino County, California, were charged in a federal indictment with conspiracy to distribute and to possess with intent to distribute 1000 Kilograms or more of marijuana. Gordon was also charged with two counts of structuring fraudulent transactions.
The government alleges that between July 2011 and the present, Gordon obtained large amounts of marijuana from Olea in California and shipped the marijuana to the Boston area via the US Postal Service and Federal Express. Gordon then distributed the marijuana in the Boston area. Jaggon assisted Gordon in the operation which produced millions of dollars in profits, and Gordon and others engaged in various structured financial transactions with the proceeds generated by the sale of that marijuana in Massachusetts and elsewhere.
Under the statute, Gordon and Olea face a mandatory minimum sentence of 10 years in prison and maximum sentence of life, a $10 million fine, and at least five years of supervised release following any period of incarceration. Jaggon faces a maximum sentence of 20 years in prison, a $1 million fine, and at least three years of supervised release. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Shelly A. Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police made the announcement today. Substantial assistance was also provided by Homeland Security Investigations in San Francisco, the Transportation Security Administration, Boston Police Department, Norwood, Randolph, and Needham Police Departments.
The case is being prosecuted by Karen Beausey of Ortiz’s Organized Crime Drug Enforcement Task Force.
The details contained in the Indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Three Face Federal Charges in A Military Procurement Fraud Scheme Involving Helicopters That Support the PresidentRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announces that a federal grand jury in Raleigh, North Carolina returned a 5 count indictment charging CRAIG KOLHAGEN, DENNIS PENNINGTON, and JAMES BOWLING with conspiracy to commit wire fraud, wire fraud, major fraud against the government, and procurement fraud.
The Grand Jury charges that, from 2011 until December 2013, KOLHAGEN, PENNINGTON, and BOWLING engaged in a conspiracy to defraud the United States in connection with a bid proposal for a contract to perform maintenance work on helicopters in Marine Helicopter Squadron One (HMX-1). The HMX-1 squadron is tasked with providing helicopter transport to the President of the United States, among other duties.
KOLHAGEN, who is a Chief Warrant Officer in the United States Marine Corps, had been the Contracting Officer’s Representative for the HMX-1 squadron. BOWLING and PENNINGTON are retired Marine Corps senior non-commissioned officers, who served as helicopter mechanics during their military careers. Currently, PENNINGTON is Chief Executive Officer and BOWLING is President of Valour, LLC, a Louisiana-based defense contractor engaged in the business of helicopter repair for the military.
The Indictment alleges that KOLHAGEN illegally leaked confidential information regarding the cost of a proposed contract for the maintenance of HMX-1 helicopters. In turn, PENNINGTON and BOWLING unlawfully colluded with KOLHAGEN to artificially inflate the cost estimate of the bid proposal, and to draft the proposed contract’s statement of work and technical requirements in a way to favor Valour over other potential bidders, according to the indictment.
Mr. Walker remarked, “This investigation highlights the unwavering determination of the Department of Justice to root out corruption in the military contracting process and to safeguard taxpayer dollars.”
"We are committed to protecting Navy and USMC personnel and materiel assets, extending to ethical and equitable contracting practices" stated Andrew Traver, Director of the Naval Criminal Investigative Service.These comments were underscored by Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service, who said, “DCIS remains committed to working with its law enforcement partners to investigate individuals who attempt to manipulate the procurement process for their own gain.”
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty in a court of law. The case is being investigated by the Naval Criminal Investigative Service (NCIS) and the Defense Criminal Investigative Service (DCIS). Assistant United States Attorney Evan Rikhye is prosecuting the case for the government.
Thornton Woman Sentenced to Federal Prison for Fraud Against the GovernmentRead the Press Release
DENVER – Paula King (aka Paula Pfeiffer), age 69 of Thornton, Colorado, was sentenced on November 4th, 2014 by U.S. District Court Judge Philip A. Brimmer to serve 9 months in federal prison, followed by 3 years on supervised release for defrauding the United States of over one hundred thirty thousand dollars, the U.S. Attorney’s Office, the Social Security Administration Office of Inspector General and the Railroad Retirement Board Office of Inspector General announced. King was ordered to pay a total of $131,443 in restitution ($89,205 to the Social Security Administration and $42,238 to the Railroad Retirement Board), and to report to a Bureau of Prisons facility within 15 days of designation.
According to the stipulated facts contained in the plea agreement, beginning in 1994, King obtained Social Security Supplemental Income benefits to which she was not entitled, and continued to receive them for 17 years. She also obtained widow’s benefits from the U.S. Railroad Retirement Board to which she was not entitled. In order to obtain these benefits, King failed to disclose to the agencies that she had remarried and certified that she had not been remarried, knowing that her remarriage would make her ineligible for the benefits. She used two sets of names, dates of birth, and social security numbers to conceal her fraud.
During the sentencing hearing, the defendant argued that due to her age and poor health, she should receive a sentence to probation or in-home detention. The court found that the fact that King is now in poor health does not mitigate her criminal culpability, and that a sentence to prison was necessary in this case, adding that such a sentence would send a message to others who may believe that being in ill health precludes a sentence of incarceration despite the one’s criminal conduct.
The investigation was conducted by the Social Security Administration Office of the Inspector General and the Railroad Retirement Board Office of the Inspector General.
This case was prosecuted by Assistant U.S. Attorney Linda Kaufman.
Tax Preparer Sentenced to Federal Prison for Her Role in Fraudulent Tax Return SchemeRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced that Chief U.S. District Judge Brian A. Jackson sentenced MALETICA V. FERGUSON, age 37, of Geismar, Louisiana, to serve ten (10) months in federal prison, and an additional eight (8) months in community confinement, for her role in a fraudulent tax return scheme. Following her release from custody, FERGUSON will be placed on supervised release for one (1) year. She has also been ordered to pay $263,769 in restitution to the IRS.
FERGUSON’s sentence follows her conviction for scheming to defraud the IRS during the 2010 and 2011 tax years by submitting dozens of false tax returns, seeking refunds totaling more than $300,000. In the returns, by misrepresenting the taxpayers’ incomes and falsely claiming various credits, among other means, FERGUSON fraudulently claimed that the taxpayers were entitled to significant tax refunds. As a result of her scheme, FERGUSON caused a loss of $263,769 to the taxpayers of the United States.
U.S. Attorney Green stated: “This sentence should send another clear message that the U.S. Attorney’s Office and the IRS are serious about combating tax fraud. We will continue to aggressively pursue those criminals who seek to defraud the American taxpayer.”
IRS Criminal Investigations Special Agent-in-Charge Gabriel Grchan stated: “We are pleased with today’s announcement regarding the sentence of Ms. Ferguson, who prepared income tax returns that sought over $260,000.00 in fraudulent refunds. The tax system is built on the premise that taxpayers file accurate and timely tax returns. Willfully aiding or assisting in the preparing of false tax returns is a serious crime, punishable under federal law. To ensure confidence in our tax system, Special Agents of IRS Criminal Investigation are committed to the aggressive pursuit and prosecution of individuals who intentionally abuse the nation’s tax system.”
This case was the result of an initiative by the United States Attorney’s Office, the Internal Revenue Service’s Criminal Investigations Division, and the United States Department of Justice’s Tax Division, to combat tax fraud schemes. The case is being prosecuted by Assistant United States Attorney Cam T. Le.
Sutter County Woman Pleads Guilty to Participation in Large-Scale EDD Benefit Fraud SchemeRead the Press Release
SACRAMENTO, Calif. —Iqila Begum Khan, 34, of Live Oak, pleaded guilty today to conspiring to commit mail fraud in a fictitious employer scheme, United States Attorney Benjamin B. Wagner announced.
Iqila Khan is one of 28 defendants charged in a long-running Yuba City-based scheme that involves several family members. She is the daughter of defendant Mohammad Nawaz Khan, sister of Mohammad Adnan Khan, and niece of Mohammad Shahbaz Khan and Mohammad Riaz Khan. To date, 15 defendants have pleaded guilty to various charges. A jury trial for Mohammad Nawaz Khan and five others is scheduled for January 12, 2015.
According to court documents, the defendants set up farm labor contracting businesses that purported to provide labor to harvest various crops in Sutter and Yuba Counties. They registered the businesses with the California Employment Development Department and reported employees and their wages to EDD. The organizers of the scheme sold fraudulent paystubs to other people and reported the wages to EDD. The purchasers of the fake wages could then subsequently file for unemployment or disability benefits with EDD based on their fictitious “employment.” Because the amount of the benefit that EDD pays is based on the claimant’s prior earnings, customers were charged more for documents reflecting higher wages.
According to her plea agreement, Iqila Khan sold fake wages on behalf of the companies at a rate of $250 for every $1,000 of reported “wages.” Iqila Khan generally sold these fraudulent wages at an office on Palora Avenue in Yuba City. During the investigation, Iqila Khan was secretly recorded making a sale, where she explained to the undercover buyer how and when to file for unemployment benefits based on the fake wages and what to say if the buyer was contacted by the state. Law enforcement later executed a search warrant at the Palora Avenue office and found a black ledger providing lists of names and amounts that were to be listed as fictitious wages with EDD as well as hundreds of fraudulent paystubs associated with the scheme.
Over the course of the conspiracy, it is alleged that the defendants reported false wages for over 1,000 separate individuals that resulted in more than 2,000 fraudulent claims for unemployment benefits. The scheme is alleged to have defrauded EDD of more than $14 million.
The prosecution of this fraud scheme has consisted of two indictments in 2012, two in 2013, and a fifth indictment in 2014. The last indictment charges one of the original defendants and another man with a new scheme to sell false wages and two other individuals with committing perjury before the federal investigating grand jury.
This case is the product of an investigation by the Federal Bureau of Investigation, the Department of Labor, Office of Inspector General, and the California Employment Development Department, Investigation Division. Assistant United States Attorneys Jared C. Dolan and Sherry D. Haus are prosecuting the case.
Iqila Khan is scheduled to be sentenced by Chief United States District Judge Morrison C. England Jr. on January 29, 2015, and faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Suisun City Man Charged with Federal Firearm ChargeRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a single-count indictment today against Frank Gowans III, 26, of Suisun City, charging him with felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
According to court documents, Gowans was arrested by Vallejo police officers on October 12, 2014. The officers had observed Gowans walking with a black object in his hand. When the officers approached, Gowans discarded the object. An officer went to the area where Gowans had discarded the object and found a 9 mm handgun. Gowans was on parole at the time of arrest and is a convicted felon.
This case is the product of an investigation by the FBI and the Vallejo Police Department. Assistant United States Attorney Olusere Olowoyeye is prosecuting the case.
If convicted, Gowans faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Stoughton Man Pleads Guilty in Trade Association ScamRead the Press Release
BOSTON – A Stoughton man pleaded guilty yesterday to engaging in a fraud scheme involving the creation of phony invoices for annual dues that purported to come from legitimate business and trade associations.
Darren Stokes, 42, pleaded guilty yesterday to eight counts of wire fraud and seven counts of mail fraud. U.S. District Judge Richard G. Stearns scheduled sentencing for Feb. 5, 2015.
From 2008 to 2012, Stokes caused tens of thousands of fraudulent invoices to be faxed to businesses throughout the United States which purported to be from business or trade associations and sought payment for annual membership dues. In fact, Stokes had no authorization from the business and trade associations to collect such payments. Stokes caused invoices to be sent to members of associations including the American Dental Association, the National Association of Manufacturers, the Automotive Parts Remanufacturers Association, the American Trucking Association, the Associated General Contractors of America, and the National Hospital Association. In response to the fraudulent invoices, hundreds of businesses mailed checks to addresses controlled by Stokes who then cashed many of the checks.
The maximum sentence under the statutes is 20 years in prison, three years of supervised release and a $250,000 fine or twice the gross gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service in Boston, made the announcement. The case is being prosecuted by Assistant U.S. Attorneys Mark J. Balthazard of Ortiz’s Economic Crimes Unit and Doreen M. Rachal of Ortiz’s Asset Forfeiture Unit.
- Spring Man Handed Significant Sentence in Large Scale Meth Conspiracy
South King County Man Convicted of Sex Trafficking Juveniles Across State LinesRead the Press Release
A 42-year-old man, who trolled neighborhoods in south King County looking for teen-age girls to recruit into prostitution, was convicted today in U.S. District Court in Seattle of four criminal counts related to sex trafficking, announced Acting U.S. Attorney Annette L. Hayes. NATHAN BONDS was convicted of two counts of sex trafficking of a juvenile and two counts of transportation of a juvenile to engage in prostitution. The jury deliberated for five hours following a four day trial. U.S. District Judge John C. Coughenour scheduled sentencing for February 10, 2015, at 9:00 a.m.
According to records in the case and testimony at trial, in April 2013, BONDS was parked outside a Kent convenience store when he spotted and befriended a 15-year-old girl who had run away from home. BONDS let the girl borrow his cell phone, and then let her sit in his car, out of the rain. BONDS manipulated the girl into accompanying him to a hotel room where he raped her. Over the next few days, BONDS coerced the girl into working for him as a prostitute, convincing her she had no other options. BONDS advertised the girl on Backpage.com and made her give him all of the money she earned from prostitution acts. He also recruited the girl’s 17-year-old friend to work for him as a prostitute. On April 19, 2013, BONDS transported the 15-year-old girl and her 17-year-old friend, as well as a drug-addicted, homeless adult woman that he had also manipulated into working for him as a prostitute, to Portland to engage in prostitution. BONDS forced the two teens to take sexually explicit photographs, and then used some of those photographs to advertise them on Backpage.com.
Ultimately, both teens returned to their families and law enforcement identified BONDS as a sex trafficker. He was arrested June 5, 2013, and law enforcement recovered the computer and cell phone he used to conduct the prostitution business, both of which contained evidence establishing BONDS’s longtime involvement in prostitution.
Sex trafficking of juveniles is punishable by a mandatory minimum sentence of ten years, and up to life imprisonment.
The case was investigated by the North-Central Sound Child Exploitation Task Force which includes officers and agents from the Kent Police Department and FBI. The King County Prosecutors Office contributed substantial assistance to the prosecution. The case was prosecuted federally by Assistant United States Attorneys Kate Crisham and Ye-Ting Woo.
Sentencing for October 31, 2014Read the Press Release
Henry Agustin Aguilera, 30, of Honduras, was sentenced by Federal District Court Alan B. Johnson on October 31, 2014, for illegal re-entry of a previously deported alien into the United States. Aguilera was arrested in Cheyenne, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Securities Attorney Arrested in Boston-Based Market Manipulation SchemeRead the Press Release
BOSTON – A securities attorney based in California was arrested this morning on securities fraud charges arising out of his participation in a scheme to manipulate the stock of a Boston-based company.
Richard Weed, 52, was charged with conspiracy, securities fraud and wire fraud based on his involvement in the manipulation of the stock of CitySide Tickets, Inc., a Boston-based ticket reseller.
According to the complaint, Weed, along with at least two others, conspired to create the appearance that CitySide was a growing company when, in fact, it was in dire financial straits. Weed, who served as CitySide’s Secretary and as one of two members of CitySide’s Board, was responsible for drafting false and misleading legal opinion letters so that his co-conspirators could obtain free trading stock. Weed also helped his co-conspirators to conceal their control and ownership of CitySide by directing the stock to be distributed to different entities that they controlled. This allowed the conspirators to manipulate CitySide’s stock and sell their shares at artificially high prices. In addition to assisting with the manipulation itself, Weed was also charged with responding to any inquiries from investors or securities regulators.
Two Boston-based stock promoters, Coleman Flaherty and Thomas Brazil, also were charged with conspiracy, securities fraud, and wire fraud arising from their participation in the stock manipulation.
The Securities and Exchange Commission (SEC) filed suit today against Weed, Flaherty and Brazil based on the CitySide market manipulation scheme.
“The prosecution of corporate and securities fraud is a top priority of the Department of Justice and a top priority for this Office,” said United States Attorney Carmen M. Ortiz. “Securities attorneys are the gatekeepers, entrusted with the responsibility of the fair and efficient functioning of our markets. We are committed to working with our regulatory and law enforcement partners to detect and prosecute those engaged in market abuse.”"Attorney Weed joins more than a dozen CEOs, traders, fund managers, equities analysts, lawyers and publicists caught in the FBI's long-running undercover investigation of the manipulation of micro-cap stocks,” said Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “We expect that our ongoing undercover operations to find people like Mr. Weed will continue to return high yields far into the future."
The charges follow a multi-year investigation focusing on preventing fraud in the microcap stock markets. Microcap companies are small publicly traded companies whose stock often trades at pennies per share. Fraud in the microcap markets is of increasing concern to regulators as such markets have proven to be fertile grounds for fraud and abuse. This is, in part, because accurate information about microcap stocks may be difficult for the average investor to find, since many microcap companies do not file financial reports with the SEC.
The latest charges follow a series of cases filed by the SEC and the U.S. Attorney for the District of Massachusetts in which 27 individuals have been criminally charged, and 20 convicted, for using kickbacks and other schemes to trigger investment in, or manipulate the stock of, thinly-traded stocks.
The statutory maximum penalties for the securities and wire fraud charges are 20 years in prison, and three years of supervised release. The maximum fine for securities fraud is $5 million and the maximum fine for wire fraud is $250,000, or twice the gross loss to the victim. The statutory maximum penalties for the conspiracy charge is five years in prison, three years of supervised release, and a fine of $250,000, or twice the gross loss to the victim. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ortiz and FBI SAC Lisi made the announcement today. The criminal case is being prosecuted by Assistant U.S. Attorney Sarah E. Walters, Chief of Ortiz’s Economic Crimes Unit and SEC Attorney Eric A. Forni, who was appointed as a Special Assistant U.S. Attorney.The details contained in the complaint are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Sanford Man Sentenced to 10 Years in Prison for Transporting Child PornographyRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
Richard M. Moulton, Jr., 31, of Sanford, Maine, was sentenced today in U.S. District Court by
Judge Nancy Torresen to 10 years in prison and 10 years of supervised release for transporting
child pornography. Moulton pleaded guilty to the charge on May 21, 2014.According to court records, in February 2014, Moulton sent an email message to the
undercover email account of a federal agent, attaching four video files depicting minors engaged
in sexually explicit activity and asking: “Can u send 4 back also.” Evidence presented at the
sentencing hearing showed that Moulton frequently used his email account to solicit child
pornography from others and to send child pornography videos and images.In imposing sentence, Judge Torresen noted the seriousness of the crime Moulton had
committed and the lasting impact that such offenses have on the children depicted in the images
traded online. Judge Torresen also stated that each person who possesses or distributes such
images bears some responsibility for the sexual exploitation of these children.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s
Homeland Security Investigations and the Sanford Police Department. 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 U.S.
Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section,
Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and
prosecute individuals who exploit children via the Internet, as well as to identify and rescue
victims. For more information about Project Safe Childhood, please visit
www.projectsafechildhood.govRevere Bank Manager Sentenced to Federal Prison for Stolen Identity Fraud SchemeRead the Press Release
BOSTON – A Revere man was sentenced today in U.S. District Court in Boston for his role in a stolen identity refund fraud scheme.
Carlos Mauricio Gonzalez, 30, was sentenced by U.S. District Judge Nathaniel M. Gorton to 30 months in prison, and ordered to pay $326,802 in restitution to the Internal Revenue Service. On Nov. 13, 2013, Fernandez pleaded guilty to a one count of conspiracy to convert public money.
Gonzalez, who worked as a supervisor at a Citizens Bank branch in Stoneham, agreed to open business and personal bank accounts that were to receive proceeds from stolen identity refund fraud (SIRF) by which conspirators obtain refunds by filing fraudulent income tax returns using the identities of other people. Gonzalez opened bank accounts himself, and also directed other bank employees to open accounts although he did not inform these employees about the scheme. Gonzalez withdrew and directed other employees to withdraw the SIRF proceeds in cash amounts below $10,000. Between December 2011 and April 2012, Gonzalez facilitated the opening of 32 bank accounts, which received 75 deposits totaling $402,897. For his actions, Gonzalez received $14,000.United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by Special Assistant United States Attorney Sean R. Delaney of Ortiz’s Economic Crimes Unit.
Philadelphia Man Charged with Two Counts of Bank RobberyRead the Press Release
Leroy Townsend, 59, of Philadelphia, PA, was charged today by indictment with two counts of bank robbery, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 40 years imprisonment, a $500,000 fine, not more than 3 years supervised release and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Palm Beach County Residents Convicted for Sex Trafficking of MinorsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that a federal jury in West Palm Beach returned guilty verdicts on all counts against Dontavious M. Blake, 32, and Tara Jo Moore, 26, both of Palm Beach County.
This case stemmed from an investigation into the production of child pornography. During the investigation, a juvenile victim revealed that she had engaged in prostitution, at the age of 15, beginning in August of 2011 and continuing until December 2011. She had approximately 10 – 15 regular clients and worked in hotels in the Palm Beach County area. After further investigation, a second juvenile victim was identified and revealed that she had also engaged in prostitution, at the age of 16, beginning in July 2011 and continuing through October 2012. They worked for a pimp who they identified as Blake and his girlfriend Moore. Blake would post online escort advertisements with photographs of the minors on Backpage.com, which postings included a telephone number that belonged to him. Moore would answer the calls from the clients and negotiate a price for prostitution services and schedule a “date.” Once the negotiated price had been agreed upon, Blake would contact the minors and drive them to the hotel or location for the “date.” At the conclusion of the date, the minor would pay a portion of the proceeds to Blake including payment for a portion of the hotel room.
Blake and Moore were each found guilty of two counts sex trafficking of children and one count of conspiracy to commit sex trafficking of children, in violation of Title 18, United States Code, Sections 1591 and 594. Sentencing is set for January 23, 2015. Blake and Moore face a mandatory minimum statutory sentence of ten years imprisonment and maximum statutory sentence of life in prison on the sex trafficking of children counts. Blake and Moore face a statutory sentence of life in prison on the conspiracy to engage in sex trafficking of children.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Lothrop Morris.
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.
Operator of “Silk Road 2.0” Website Charged in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Peter Edge, Executive Associate Director of Homeland Security Investigations (“HSI”), announced today the arrest of BLAKE BENTHALL, a/k/a “Defcon,” in connection with his operation and ownership of the Silk Road 2.0 website, a hidden website designed to enable its users to buy and sell illegal drugs and other unlawful goods and services anonymously and beyond the reach of law enforcement. BENTHALL was arrested yesterday in San Francisco, California. He will be presented later today in federal court in San Francisco before Magistrate Judge Jaqueline Scott Corley.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Blake Benthall attempted to resurrect Silk Road, a secret website that law enforcement seized last year, by running Silk Road 2.0, a nearly identical criminal enterprise. Let’s be clear – this Silk Road, in whatever form, is the road to prison. Those looking to follow in the footsteps of alleged cybercriminals should understand that we will return as many times as necessary to shut down noxious online criminal bazaars. We don’t get tired.”
FBI Assistant Director-in-Charge George Venizelos said: “It’s been more than a year since the FBI made an arrest of the administrator of the black-market bazaar, Silk Road, and here we stand again, announcing the arrest of the creator and operator of Silk Road 2.0. Following a very close business model to the first, as alleged, Blake Benthall ran a website on the Tor network facilitating supposedly anonymous deals of drugs and illegal services generating millions of dollars in monthly sales. Benthall should have known that those who hide behind the keyboard will ultimately be found. The FBI worked with law enforcement partners here and abroad on this case and will continue to investigate and bring to prosecution those who seek to run similar black markets online.”
HSI Executive Associate Director Peter Edge said: “Blake Benthall’s arrest ends his status as the alleged administrator of a website that allows illicit black-market activities to evolve and expand, and provides a safe haven for illegal vices. HSI will continue to work in partnership with its federal and international law enforcement partners around the world to hold criminals who use anonymous internet software for illegal activities who seek to hide behind the anonymity of the Internet to carry out illegal activities accountable for their actions.”
According to the Complaint unsealed today in Manhattan federal court:
Since about December 2013, BENTHALL, a/k/a “Defcon,” has secretly owned and operated an underground website known as “Silk Road 2.0” – one of the most extensive, sophisticated, and widely used criminal marketplaces on the Internet today. The website has operated on the “Tor” network, a special network of computers on the Internet, distributed around the world, designed to conceal the true IP addresses of the computers on the network and thereby the identities of the network’s users. Since its launch in November 2013, Silk Road 2.0 has been used by thousands of drug dealers and other unlawful vendors to distribute hundreds of kilograms of illegal drugs and other illicit goods and services to buyers throughout the world, as well as to launder millions of dollars generated by these unlawful transactions. As of September 2014, Silk Road 2.0 was generating sales of at least approximately $8 million per month and had approximately 150,000 active users.
Silk Road 2.0 was created in the wake of the Government’s October 2013 seizure of the website known as “Silk Road” and the arrest of its alleged owner and operator, Ross William Ulbricht, a/k/a “Dread Pirate Roberts.” The original Silk Road website had been designed to enable people anywhere in the world to buy and sell illegal drugs and other illegal goods and services anonymously and beyond the reach of law enforcement. Before its seizure in October 2013, Silk Road was used extensively to facilitate such transactions.
In November 2013, approximately five weeks after the Government shut down Silk Road and arrested Ulbricht, Silk Road 2.0 was launched. Designed to fill the void left by the Government’s seizure of Silk Road, Silk Road 2.0 was virtually identical to the original Silk Road website in the way it appeared and functioned. In particular, like its predecessor, Silk Road 2.0 operated exclusively on the “Tor” network and required all transactions to be paid for in Bitcoins in order to preserve its users’ anonymity and evade detection by law enforcement. Likewise, the offerings on Silk Road 2.0 consisted overwhelmingly of illegal drugs, which were openly advertised as such on the site. As of October 17, 2014, Silk Road 2.0 had over 13,000 listings for controlled substances, including, among others, 1,783 listings for “Psychedelics,” 1,697 listings for “Ecstasy,” 1,707 listings for “Cannabis,” and 379 listings for “Opioids.” Besides illegal narcotics, other illicit goods and services were openly advertised for sale on Silk Road 2.0 as well, including fraudulent identification documents and computer-hacking tools and services.
When Silk Road 2.0 was launched, it was controlled for a short time by a co-conspirator using the same online moniker as that allegedly used by Ross Ulbricht in operating the original Silk Road website – “Dread Pirate Roberts.” In late December 2013, however, BENTHALL, using the moniker “Defcon,” took over administration of the site and has owned and operated it continuously since that time. In that role, BENTHALL has controlled and overseen all aspects of Silk Road 2.0, including, among other things: the computer infrastructure and programming code underlying the website; the terms of service and commission rates imposed on vendors and customers of the website; the small staff of online administrators and forum moderators who have assisted with the day-to-day operation of the website; and the massive profits generated from the operation of the illegal business.
During the Government’s investigation, which was conducted jointly by the FBI and HSI, an HSI agent acting in an undercover capacity (the “HSI-UC”) successfully infiltrated the support staff involved in the administration of the Silk Road 2.0 website, and was given access to private, restricted areas of the site reserved for BENTHALL and his administrative staff. By doing so, the HSI-UC was able to interact directly with BENTHALL throughout his operation of the website.
BENTHALL, 26, of San Francisco, California, is charged with one count of conspiring to commit narcotics trafficking, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison; one count of conspiring to commit computer hacking, which carries a maximum sentence of five years in prison; one count of conspiring to traffic in fraudulent identification documents, which carries a maximum sentence of 15 years in prison; and one count of money laundering conspiracy, which carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding joint efforts of the FBI and its New York Cyber Branch and HSI and its Cyber Crimes Center and Chicago-O’Hare Field Office. He also thanked the Drug Enforcement Administration’s 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, Office of Foreign Assets Control, and New York Department of Taxation. Mr. Bharara also thanked the Department of Justice’s Computer Crime and Intellectual Property Section for its assistance and support, the Department of Justice’s Criminal Division Office of International Affairs, and the law enforcement authorities of France, Germany, Lithuania, the Netherlands, and the United Kingdom. Mr. Bharara also noted that the investigation remains ongoing.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit and Money Laundering and Asset Forfeiture Unit. Assistant United States Attorneys Serrin Turner, Timothy Howard, and Daniel Noble are in charge of the prosecution. Assistant United States Attorney Margaret Graham is in charge of the forfeiture aspect of the case.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Blake Benthall Complaint
North Tonawanda Man Sentenced for Identity TheftRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that David Johnson, 42, of North Tonawanda, N.Y., who was convicted of aggravated identity theft, was sentenced to 12 months in prison by U.S. District Court Judge Richard J. Arcara. The defendant was also ordered to pay restitution totaling $28,512.78.
Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that between September 2012 and March 2013, Johnson and co-defendant, Calvina Myles, used the names and personal identification information of two individuals to apply for two Capital One credit cards in those names. The defendants, and a third co-conspirator, Avery Gill, purchased merchandise and gift cards from retail stores using the credit cards. Johnson also accompanied Gill who made ATM withdrawals using the credit card. As a result of this conduct, Capital One suffered a loss of $29,429.16.
Calvina Myles, who was convicted of bank fraud, was sentenced to 12 months in prison. Avery Gill was also convicted of bank fraud and sentenced to time served.
The sentencing is the culmination of an investigation on the part of the U.S. Postal Inspection Service, Boston Division, currently under the direction of Inspector in Charge, Shelly A. Binkowski.Nine Individuals Indicted in November Federal Grand JuryRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office announced today the results of the November 2014 Federal Grand Jury.
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. Statutory maximum punishments are in parentheses. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
LINDA LUE ADAMS, age 68, of Eufaula, OK
a/k/a LINDA CORLEY
a/k/a LINDA MARTINTheft Of Government Funds
Concealment Of A Material FactThe Indictment alleges that beginning in or about November 2011, and continuing until in or about November, 2013, within the Eastern District of Oklahoma, the defendant, did knowingly and willfully embezzle, steal, and purloin money of the Social Security Administration, namely Social Security Disability Income and Social Security Disabled Widow payments, to which she knew she was not entitled, having a value in excess of $1,000.00. It further alleges that the defendant intentionally concealed her conviction and incarceration for a crime in order to receive and continue to receive and spend Disability Income and Disabled Widow payments made by the Social Security Administration to her. By such action, the defendant took approximately $22,867.80 in Social Security Disability Income and Disabled Widow payments to which she was not entitled. The charges arose from an investigation by the Social Security Administration, Office of Inspector General.
The charges are in violation of Title 18, United States Code, Sections 641 and 2, punishable by not more than 10 years imprisonment and/or up to a $250,000.00 fine and Title 42, United States Code, Section 408(a)(4), punishable by not more than 5 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorney Rob Wallace
HANK JOSHUA BELL, age 34, of Muskogee, OK
Felon In Possession Of A Firearm
The Indictment alleges that on or about October 8, 2014, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce firearms which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Muskogee Police Department and the Federal Bureau of Investigation. The charges are in violation of Title 18, United States Code, Section 922(g)(1), punishable by not more than 10 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorney Kyle Waters
ARICA ROSE BRISCOE, age 21, of Decatur, GA
NATHANIEL DENNIS, Jr., age 23, of Ellenwood, GAPossession Of A Counterfeit Security
The Indictment alleges that on or about August 5, 2014, within the Eastern District of Oklahoma, ARICA ROSE BRISCOE and NATHANIEL DENNIS, JR., defendants herein, knowingly possessed counterfeit securities, to wit: counterfeit checks drawn accounts of organizations which operate in interstate commerce, with intent to deceive another.
The charges arose from an investigation by the Oklahoma Highway Patrol and the United States Secret Service. The charges are in violation of Title 18, United States Code, Sections 513(a) and 2, punishable by not more than 10 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorney Melody Nelson
LADONNA JANE BURNS, age 44, of Tulsa, OK
Embezzlement
Theft From An Indian Tribal OrganizationThe Indictment alleges that from on or about April 1, 2013, until on or about September 17, 2013, in the Eastern District of Oklahoma, the defendant, being an employee of the Checotah Muscogee Indian Community, an Indian Tribal Organization, did embezzle, steal, willfully misapply and willfully and knowingly convert to her own use more than $1,000.00 of the moneys, funds and credits belonging to the said Indian Tribal Organization.
The charges arose from an investigation by the Creek Nation Lighthorse Police and the Federal Bureau of Investigation. The charges are in violation of Title 18, United States Code, Section 1163, punishable by not more than 5 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorney Rob Wallace
KENNETH EDWARD DAY, age 37, of Hartshorne, OK
Felon In Possession Of Firearm
The Indictment alleges that on or about August 20, 2014, within the Eastern District of Oklahoma, the defendant having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, firearms which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Drug Enforcement Administration. The charges are in violation of Title 18, United States Code, Sections 922(g)(1) and 924(e), punishable by not less than 15 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorney Chris Wilson
KENNETH WAYNE RABORN, age 64, of Ardmore, OK
PATRICIA ANN RABORN age 56, of Ardmore, OKTheft Of Government Funds
Concealment Of A Material Fact
False StatementThe Indictment alleges that beginning in or around July 2006, and continuing until in or around February, 2014, within the Eastern District of Oklahoma, the defendants did knowingly and willfully embezzle, steal, and purloin money of the Social Security Administration, namely, Social Security Disability Income payments to which they knew they were not entitled, having a value in excess of $1,000.00. The Indictment further alleges that beginning in or around March 2005, and continuing until in or around October, 2012, the defendants had knowledge of the occurrence of an event affecting the right to receive or continue to receive Social Security Disability Income payments. KENNETH WAYNE RABORN concealed and failed to disclose such event with the intent to fraudulently secure payment when no payment was authorized. Specifically, defendant KENNETH WAYNE RABORN intentionally concealed his securing gainful employment in order to receive and continue to receive and spend Disability Income payments made by the Social Security Administration to him. By such action, defendant KENNETH WAYNE RABORN took approximately $86,289.50 in Social Security Disability Income payments to which he was not entitled.
The charges arose from an investigation by the Social Security Administration, Office of Inspector General. The charges are in violation of Title 18, United States Code, Sections 641 and 2, punishable by not more than 10 years imprisonment and/or up to a $250,000.00 fine; Title 18, United States Code, Section 408(a)(4), punishable by not more than 5 years imprisonment and/or up to a $250,000.00 fine and Title 18, United States Code, Section 1001(a)(2), punishable by not more than 5 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorney Rob Wallace
MICHAEL GLENN VALLES, age 47, of Calera, OK
False Statement
The Indictment alleges that on or about January 22, 2010, within the Eastern District of Oklahoma, the defendant knowingly made a false statement for the purpose of influencing the action of the United States Department of Agriculture, Farm Service Agency in connection with a security agreement in which the defendant listed $80,739.19 in value of cattle that he had purchased in August and September 2009 when in truth and in fact, as the defendant well knew, he had only purchased $27,178.91 worth of cattle during that time period.
The charges arose from an investigation by the United States Department of Agriculture. The charges are in violation of Title 18, United States Code, Section 1014, punishable by not more than 5 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorney Melody Nelson
New York City Man Charged with Drug Trafficking OffenseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today the filing of criminal charges against Timothy Smart, age 31, New York City resident. A criminal Information filed in the United States District Court in Scranton yesterday alleges that Smart distributed cocaine hydrochloride, cocaine base, (crack), and heroin in Luzerne and Lackawanna Counties on numerous occasions between 2012 and September 20, 2013.
The government also filed a plea agreement in the case which is subject to the approval of the Court.
United States Attorney Peter Smith noted that the charges are the result of an investigation by the Federal Bureau of Investigation and the Pennsylvania State Police into the sale of drugs at motels in Luzerne and Lackawanna Counties.
Prosecution is assigned to Assistant United States Attorney John Gurganus.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is twenty years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.