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16 December 2014
Sandia Pueblo Man Pleads Guilty to Assaulting Tribal Police OfficerRead the Press Release
ALBUQUERQUE – Ricardo Lamagna, 21, a member and resident of Sandia Pueblo, N.M., pleaded guilty this morning to a felony information charging him with an assault with a dangerous weapon charge under a plea agreement with the U.S. Attorney’s Office.
Lamagna was arrested on Aug. 8, 2014, on a criminal complaint charging him with assaulting a tribal police officer with a deadly weapon. According to the criminal complaint, Lamagna assaulted an officer of the Pueblo of Sandia Tribal Police Department in the early hours of Aug. 5, 2014, by firing a gun in the vicinity of the tribal police officer. The assault occurred on Sandia Pueblo in Bernalillo County, N.M., after the tribal officer responded to a domestic violence call from Lamagna’s residence. The tribal police officer was not injured.
During today’s proceedings, Lamagna entered a guilty plea to an assault with a deadly weapon charge, and admitted assaulting a tribal police officer with a handgun on Aug. 5, 2014. At sentencing, Lamagna faces a statutory maximum penalty of ten years in federal prison. His sentencing hearing has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI with assistance from the Pueblo of Sandia Tribal Police Department, and is being prosecuted by Assistant U.S. Attorney David Adams.
Salem, Virginia Police Officer Pleads Guilty to BriberyRead the Press Release
Admits to Soliciting Sexual Favors in Exchange for Potential Lenient Treatment
A police officer employed by the City of Salem, Virginia, and assigned to a U.S. Drug Enforcement Administration (DEA) task force pleaded guilty today for soliciting and receiving sexual favors from a cooperating defendant in exchange for agreeing to recommend a favorable sentence to a federal prosecutor on the defendant’s behalf.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Adam S. Lee of the FBI’s Richmond Division and Special Agent in Charge Michael Tompkins of the Department of Justice Office of the Inspector General’s Washington Field Office made the announcement.
“Kevin Moore took a solemn oath to protect and serve the public, but then abused the authority of his badge by sexually exploiting a federal witness,” said Assistant Attorney General Caldwell. “When Moore crossed the line from enforcing the law to breaking it, his actions cast an unfortunate shadow over the selfless and courageous work of his fellow officers. Working with our law enforcement partners, the Department of Justice will expose and prosecute all such abuses of authority, in order to restore and maintain the public’s trust.”
“Cases involving corruption of law enforcement officials are among the FBI’s highest priority criminal investigations. The public should expect integrity from those sworn to uphold the law. Mr. Moore’s breach of his sworn duty in this case is particularly pernicious as he exploited his victims in the most personal way. The Richmond Division of the FBI continues to have confidence in the City of Salem Police Department. We value our partnership with the Department and the proud men and women who serve their community with distinction everyday,” said Special Agent in Charge Lee.
“The OIG will aggressively investigate with its law enforcement partners allegations of misconduct among Department employees, contractors, and deputized task force officers to help ensure the Department of Justice performs its critical work with integrity,” said Special Agent in Charge Tompkins.
Kevin C. Moore, 42, of Roanoke, Virginia, was a Salem Police Department officer and was assigned to the DEA task force in Roanoke, Virginia. According to his plea agreement and accompanying statement of facts, between June and September 2014, Moore informed a female cooperating defendant that he was in a position to help her with her pending federal methamphetamine trafficking case. In August 2014, for example, in a series of text messages with the cooperating defendant, Moore made clear that he could recommend a favorable sentence to the prosecutor on the cooperating defendant’s behalf in exchange for sexual favors. Moore then convinced the cooperating defendant to go for a ride in his official vehicle where she performed a sexual act with Moore.
As part of his guilty plea, Moore admitted to engaging in similar conduct with two other female cooperating witnesses in federal drug investigations dating back to 2009. According to the statement of facts, Moore falsely informed these witnesses that he had convinced federal prosecutors not to charge them with federal criminal offenses that would carry significant prison sentences. Moore then solicited and received sexual favors from the witnesses in exchange for his purported assistance.
Moore pleaded guilty to a one-count information charging him with bribery before Chief U.S. District Judge Glen E. Conrad of the Western District of Virginia. In cooperation with the City of Salem Police Department and DEA, Moore was arrested on Oct. 10, 2014, without incident, after being charged by complaint, and was suspended from the police department and DEA task force the same day. His sentencing is scheduled for February 9, 2015.
This case was investigated by the FBI and the Department of Justice Office of the Inspector General, and is being prosecuted by Trial Attorneys Charles R. Walsh and Robert J. Heberle of the Criminal Division’s Public Integrity Section.
Sacramento Pimp Sentenced to More Than 10 Years in Prison for Sex Trafficking of A MinorRead the Press Release
SACRAMENTO, Calif. — Keon Jamar Nunnelly, 30, of Sacramento, was sentenced today by United States District Judge John A. Mendez to 10 years and five months in prison, to be followed by a 10-year period of supervised release where he is required to register as a sex offender, for sex trafficking of a minor, United States Attorney Benjamin B. Wagner announced.
According to court documents, from January 13, 2013, until June 17, 2013, Nunnelly caused a 16-year-old girl to engage in commercial sex acts in Sacramento and Anaheim. He provided directions on when and where she should work, transported her to customers, and provided security. Nunnelly and two co-defendants rented hotel rooms to be used for prostitution and placed ads with the victim’s picture on the Internet.
This case was the product of an investigation by the Federal Bureau of Investigation’s Sacramento Child Exploitation Task Force, the Anaheim Police Department, and the Orange County District Attorney’s Office. The task force works to identify and recover minors involved in the commercial sex trade and to investigate and prosecute those who profit from that trade. Assistant United States Attorney Christiaan Highsmith prosecuted the case.
On August 12, 2014, Nunnelly pleaded guilty to sex trafficking of a minor by force fraud and coercion. Co-defendants Kia Moore, 30, and Sharon King, 31, pleaded guilty to concealing a felony and were sentenced earlier this year to time served.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Saco Attorney Sentenced to Two Years for Money Laundering ConspiracyRead the Press Release
Contact: Daniel J. Perry
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Gary
Prolman, Esq., 52, of Saco, was sentenced today in U.S. District Court by Judge George Z.
Singal to two years in prison and two years of supervised release for conspiracy to launder
$177,500 worth of marijuana trafficking proceeds. Prolman pled guilty on April 29, 2014.According to court records, between 2011 and October 2013, David Jones and others illegally distributed hundreds of pounds of marijuana in Maine and elsewhere. Between June and
September 2012, Prolman laundered about $177,500 worth of those drug proceeds by: (1) taking cash from Jones to purchase an interest in Prolman’s sports agency business; (2) illegally structuring cash deposits and cashier’s check purchases to avoid federal currency reporting requirements; and (3) using structured cashier’s checks to jointly purchase real estate with Jones in a transaction where only Prolman’s name appeared on the deed as the owner.Prolman received three separate $50,000 cash installment payments, largely consisting of low denomination bills delivered in a backpack. When Prolman attempted to deposit more than
$10,000 from the first $50,000 installment into bank accounts he controlled, a bank teller advised him of the federal currency reporting requirement for deposits exceeding $10,000. Under federal law, financial institutions that receive more than $10,000 in cash from a customer are required to report the transaction to the Internal Revenue Service (IRS). Structuring occurs when a customer breaks up cash transactions into multiple increments of less than $10,000 to avoid this cash transaction reporting requirement. Structuring is illegal under federal law and is commonly associated with the laundering of drug proceeds. After being advised of the reporting requirement by the bank teller, Prolman structured numerous cash deposits and paid $60,409 to close the joint real estate purchase using seven structured cashier’s checks.
This case was investigated by the U.S. Drug Enforcement Administration, and the IRS, and resulted from the ongoing effort of the Organized Crime Drug Enforcement Task Forces
(OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.Rhode Island Woman Charged with Sex Trafficking of MinorsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced the unsealing of an indictment charging KAIEEMA GADSON, 25, or Providence, R.I., with two counts of sex trafficking of a minor.
The indictment was returned by a grand jury in Hartford on November 19, 2014, and GADSON was arrested yesterday in Providence. Following her arrest, she appeared before U.S. Magistrate Judge Donna F. Martinez in Hartford and was ordered detained.
The indictment alleges that, in December 2013, GADSON recruited, harbored and transported two minors to engage in commercial acts.
The charge of sex trafficking of a minor carries mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Homeland Security Investigations and the Connecticut State Police, with the assistance of the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Sarala V. Nagala and David E. Novick.
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(203) 821-3722 [email protected]Prior Felon from Roswell Sentenced to Nine Years for Conviction on Federal Firearms and Drug Trafficking ChargesRead the Press Release
Lariva Prosecuted as Part of Federal “Worst of the Worst” Anti-Violence Initiative
ALBUQUERQUE – Raymond Lariva, 31, of Roswell, N.M., was sentenced late yesterday afternoon in federal court in Las Cruces, N.M., to 111 months (9.25 years) in prison followed by three years of supervised release for his conviction on firearms and drug trafficking charges. The sentence was announced by U.S. Attorney Damon P. Martinez, 5th Judicial District Attorney Janetta B. Hicks, Special Agent in Charge Thomas G. Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Phil Smith of the Roswell Police Department.Lariva was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Court records reflect that Lariva was arrested in Roswell on state charges on Dec. 31, 2012, after he attempted to avoid capture on an outstanding state warrant. On Oct. 15, 2013, Lariva was transferred to federal custody to face related federal charges in a criminal complaint that had been filed in Jan. 2013. The state charges subsequently were dismissed in favor of federal prosecution.
According to court filings, on Dec. 31, 2012, an officer of the Roswell Police Department came upon Lariva while responding to a call. The officer, who recognized Lariva and was aware of a pending warrant for his arrest, attempted to make contact with Lariva. Lariva took off running and a foot chase ensued. During the chase, Lariva threw a small black pouch over his shoulder followed by a phone case, identification card and other items. After Lariva was arrested, officers retrieved the black pouch which held numerous small baggies containing methamphetamine. On Jan. 3, 2013, after reviewing recorded telephone calls made by Lariva while in state custody, officers found a loaded pistol and Lariva’s cellphone on the rooftop of a building in the area in which the pursuit had taken place.
Lariva was indicted on Jan. 15, 2014, and charged with (1) being a felon in possession of a firearm and ammunition; (2) using and carrying a firearm during and in relation to a drug trafficking crime; and (3) possession of methamphetamine with intent to distribute. The indictment alleged that Lariva committed the offenses charged in Chaves County, N.M., on Dec. 31, 2012. At the time, Lariva was prohibited from possessing firearms or ammunition because he previously had been convicted of robbery, possession of a controlled substance, conspiracy to commit burglary, and being a felon in possession of a firearm.
On July 29, 2014, Lariva entered a guilty plea to the three-count indictment. The guilty plea was entered without the benefit of a plea agreement.This case was investigated by the Roswell office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Roswell Police Department with assistance from the 5th Judicial District Attorney’s Office. Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Pickerington Man Indicted on Drug, Gun, Money Laundering ChargesRead the Press Release
COLUMBUS – A federal grand jury has charged Andre W. Byrd, A.K.A. “Fat Dre”, 39, of Pickerington, Ohio, with one count of the possession of a firearm, one count of the possession of heroin, one count of conspiracy to distribute and possess with the intent to distribute heroin and cocaine, two counts of money laundering and one count of conspiracy to commit money laundering in a superseding indictment returned in Columbus.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation and Columbus Police Chief Kim Jacobs announced the superseding indictment returned today.
The superseding indictment alleges that on or about October 23, 2014, Byrd, a convicted felon, possessed two firearms and also heroin. The defendant also allegedly conspired to distribute and possess with the intent to distribute heroin and cocaine from 2011 until October of this year. The superseding indictment alleges that Byrd laundered money through the purchase of vehicles (a 2007 Chevrolet Tahoe and a 2013 Toyota Tundra) for himself.. Byrd also allegedly deposited large sums of money into a family member’s bank account that was used to rent residences and pay bills and credit card expenses.
The superseding indictment also seeks the forfeiture of two firearms and ammunition, $10,000 in currency that was seized from his residence, a 1969 Oldsmobile Cutlass, and jewelry.
Possession of a firearm of a convicted felon is punishable by up to 10 years in prison. Heroin and cocaine conspiracy charges can include a sentence of up to 40 years imprisonment. Money laundering and conspiracy to commit money laundering carries a potential sentence of up to 20 years in prison.
Byrd was arrested on November 3, 2014 by IRS and Columbus Division of Police. He remains in custody.
“The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs. Without these ill-gotten gains, the traffickers could not finance their organizations,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “IRS Criminal Investigation is committed with taking the profit away from the drug traffickers and putting those individuals in jail.”
U.S. Attorney Stewart commended the investigation of this case by the IRS Criminal Investigation, including Special Agent Robert Bogner, and the Columbus Division of Police, as well as Assistant U.S. Attorney Kevin Kelley, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Owner and Operator of Wolf Creek Ski Area Sentenced for Conducting Work Activity in the Forest Without A PermitRead the Press Release
DENVER – Randall D. Pitcher, age 52, of Pagosa Springs, Colorado, who owns and operates the Wolf Creek Ski Area within the confines of the Rio Grande National Forest, was sentenced today in Durango by U.S. Magistrate Judge David L. West to serve five years on supervised probation, including 500 hours of community service, to be performed 100 hours per year for each of the five years of probation, U.S. Attorney John Walsh and U.S. Forest Service Special Agent in Charge Laura Mark announced. The community service is to be served with the Sheriff’s Departments of Archuleta, Hinsdale and Mineral Counties together with the U.S. Forest Service. Pitcher was also ordered to pay a $5,000 fine.
Pitcher was previously charged and pled guilty to conducting work in the Forest without a permit,. Pitcher entered his guilty plea before U.S. Magistrate Judge David L. West in Durango on November 24, 2014.
According to the stipulated facts contained in the plea agreement, on February 11th, March 3rd, and March 4th, defendant Pitcher hired a commercial helicopter service to transport himself and his Wolf Creek Ski Area employees on to the Rio Grande National Forest for the purpose of engaging in avalanche training and search and rescue training. On all three occasions, Pitcher did not have a permit to conduct such work activities nor did he have the necessary authorization of the Forest Service to conduct such work activities.
“The permitting process for those working in the Forest serves many important functions, including protecting those doing the work as well as those who may be in the area,” said U.S. Attorney John Walsh. “In this instance, the defendant was engaged in avalanche mitigation and response training. That activity is inherently dangerous, thus amplifying the need for a permit. Thanks to the investigative work of the U.S. Forest Service, Mr. Pitcher was held accountable for failing to obtain the necessary authorization before conducting the activities. Such failure in this instance led to serious consequences.”
“The Forest Service takes permitting for services seriously on National Forest System lands because it is an integral part of managing for public safety and resource protection,” said Laura Mark, Special Agent in Charge, U.S. Forest Service, Rocky Mountain Region. “We feel that the sentence in this case adequately reflects the serious nature of this matter.”
This case was investigated by the U.S. Forest Service, and prosecuted by Durango Branch Office Chief James Candelaria.
Oregon Man Sentenced to Prison Term for Role in Lowmaster Drug Distribution RingRead the Press Release
JOHNSTOWN, Pa. – An Oregon man has been sentenced in federal court to nine months in prison and four years supervised release on his conviction of conspiracy to distribute and possess with the intent to distribute marijuana, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Brian V. Knee, 43, of Eugene, Oregon.
According to information presented to the court, from March 2009 to May 9, 2011, Knee conspired to distribute and possess with the intent to distribute 100 kilograms or more of marijuana in order to facilitate and promote George M. Lowmaster's drug distribution organization.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the joint task force, headed by the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, for the investigation leading to the successful prosecution of Knee. Other agencies participating on the task force include the Internal Revenue Service-Criminal Investigation, Pennsylvania State Police, Pennsylvania Attorney General's Office, Cambria County District Attorney's Office, Carrolltown Police Department, Patton Police Department, Ebensburg Police Department, Portage Police Department and Paint Township Police Department.
Oklahoma Man Sentenced to 84 Months for Threatening to Kill Sheriff Joseph Arpaio with A BombRead the Press Release
PHOENIX – Gregory Lynn Shrader, 56, of Jay, Okla., was sentenced to 84 months of imprisonment by Judge Neil V. Wake, on Dec. 16, 2014. Shrader had been convicted by a federal jury on Sept, 11, 2014, for willfully making a threat to kill Sheriff Joe Arpaio by means of an explosive, transport of explosive material with the intent to intimidate Sheriff Arpaio, mailing injurious articles, and possession of explosive material by a prohibited possessor.
The evidence at trial showed that Shrader constructed an improvised explosive device that had the appearance of a functioning explosive containing working components and explosive smokeless powder. Shrader addressed a package containing the device to Sheriff Arpaio, with a return address belonging to a former business partner. Shrader deposited his package in a remote Flagstaff collection box on April 10, 2013.
Additionally, the evidence at trial showed that Shrader threatened to kill Sheriff Arpaio with a mail bomb as an act of revenge hoping that law enforcement would take the threat seriously and investigate his former business partner.
The investigation in this case was conducted by the United States Postal Inspection Service and the Federal Bureau of Investigation. The prosecution was handled by Assistant United States Attorneys Raymond K. Woo and Paul Stearns.CASE NUMBER: CR-14-0355-PHX-NVW
RELEASE NUMBER: 2014-074_Shrader
# # #For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Novato Resident Pleaded Guilty to Tax EvasionRead the Press Release
SAN FRANCISCO – Scott Charles McCauley pleaded guilty in federal court in San Francisco today, to tax evasion, announced United States Attorney Melinda Haag and Acting IRS Criminal Investigation in Charge Thomas McMahon.
In pleading guilty, McCauley admitted that he was General Partner and 80% owner of McCauley & Father Construction. During 2007 and 2008, McCauley oversaw all the aspects of McCauley & Father Construction, from the day-to-day field operations to financial matters, including the creation of invoices and cashing of checks.
McCauley admitted he filed false 2007 and 2008 federal income tax returns on which he did not report income that he received and wrongfully took from McCauley & Father Construction. During these years, McCauley provided the business bank account statements to a tax return preparer. The tax return preparer relied on the bank statements to prepare the federal income tax returns for the business and for McCauley. Each time McCauley deposited checks into the business bank account, he also withdrew cash. McCauley knew that the bank statements he provided to the tax preparer only showed the net deposit, that is, the sum of the deposited checks less the simultaneous cash withdrawals. In 2007 and 2008, McCauley deposited $516,592 and $422,142, respectively, in business receipts into his personal bank account, which resulted in additional taxes due in the amount of $117,994 and $31,519, respectively.
McCauley’s personal income tax returns and McCauley Construction’s partnership tax returns for 2007 through 2009 were the subject of a routine civil audit in 2010. During the audit, McCauley falsely told a revenue agent that he deposited all the business receipts into the business bank account and provided the revenue agent with an incomplete set of the company’s invoices and business receipts.
McCauley, 50, of Novato, was charged on Dec. 12, 2014, with two counts of tax evasion, in violation of 26 U.S.C. § 7201. McCauley made his first appearance today, before the Honorable Laurel Beeler, United States Magistrate Court Judge, in San Francisco, and pleaded guilty to both counts in the Information before the Honorable Richard Seeborg, United States District Court Judge.
McCauley is scheduled to be sentenced on April 14, 2015 at 2:30 p.m. before Judge Seeborg. The maximum statutory penalty for each count, in violation of 26 U.S.C. § 7201, is five years in prison and a fine of $250,000 or twice the gross gain or loss, whichever is greater, and up to three years of supervised release. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Colin Sampson is the Assistant U.S. Attorney who is prosecuting the case. The prosecution is the result of an investigation by the IRS – Criminal Investigation.
North Slope Worker Sentenced for Tax CrimesRead the Press Release
Anchorage, Alaska – United States Attorney Karen L. Loeffler announced today that James R. Back, 60, of Soldotna, was sentenced in U.S. District Court in Anchorage. Chief Judge Ralph Beistline sentenced Back to 16 months in prison and a $10,000 fine, to be followed by one year of supervised release. In addition, Back paid over $17,000 for the cost of prosecution and paid back taxes in the amount of $113,286.
During the sentencing, Judge Beistline commented that, “Back wanted all of the privileges and none of the responsibilities of being a citizen.” He called Back’s tax avoidance arguments “senseless,” “frivolous,” and “groundless.”
In October, Back was convicted by a jury on all seven federal tax crimes for which he was charged. Back, who is employed by Alyeska Pipeline Service Company as a pipeline technician at Pump Station One in Prudhoe Bay, was found guilty of filing false 2006, 2007 and 2008 individual income tax returns, and of failure to file his 2009, 2010, 2011 and 2012 returns. Evidence presented at trial showed that Back earned over $125,000 in wages during each of the prosecution years, yet falsely claimed on the 2006, 2007, and 2008 returns that his wages were zero. For the years 2009-2012, Back simply failed to file.
Other evidence at trial established that Back contributed over $140,000 to a retirement plan during the prosecution years, had investment accounts worth hundreds of thousands of dollars, owned real estate in the Kenai Peninsula Borough, and purchased over $400,000 in gold and silver bullion. Back represented himself at the trial, and argued to the jury that taxation was immoral and unfair, and that he simply refused to submit to it anymore. He argued that the Alaska Permanent Fund Dividend was not taxable, even though he applied for and received it each year. He also argued that there was no evidence that state or federal laws applied to him. Back ignored prior warnings from his employer, his supervisor, the IRS, and a United States Tax Court Judge that his arguments were frivolous.
According to witness testimony, Back used a scheme similar to one promoted by Peter Hendrickson of Michigan. Hendrickson operates a website known as “Lost Horizons” and wrote a book called “Cracking the Code” which promotes the “zero wages” tax evasion scheme. According to federal court records, in 1992 Hendrickson was convicted of failure to file tax returns and firebombing a Michigan post office on April 16, 1990, and served 21 months in prison. In 2010, Hendrickson was sentenced to another 33 months in federal prison for tax crimes, including filing false returns and failure to file.
“This sentence should serve as a warning to those who might think there’s a secret recipe to avoid paying their fair share of taxes, taxes that the vast majority of Americans pay each and every year,” said Assistant Special Agent in Charge Steven Bellis, IRS Criminal Investigation. “IRS CI strives to ensure that those paying their honest share can feel confident that the playing field is level. James Back tried to play by his own set of made-up rules. Time and again, the courts have rejected such frivolous arguments. There is no way to opt out of the tax system.”
Ms. Loeffler commends the Internal Revenue Service, Criminal Investigation, for the investigation and prosecution of this case.New Port Richey Man Pleads Guilty to Income Tax EvasionRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Steven Staltare pleaded guilty today to income tax evasion. He faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Staltare worked in the securities and financial investment business between 1999 and 2009. During that time, he earned income from his business and filed personal income tax returns for most of those years that reflected taxes due to the United States. He failed to pay any of the amounts owed and, instead, diverted income that he had made to maintain his lifestyle and pay for other expenses, including gambling debts. The Internal Revenue Service determined that the taxes owed by Staltare during those years amounted to $1,562,205.00.
This case was investigated by the Internal Revenue Service-Criminal Investigation Division. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
New Orleans Sheriff's Deputy Pleads Guilty to Theft of Government FundsRead the Press Release
ATLANTA - Janet Baquet, a former Sheriff's deputy in Orleans Parish, La., has pleaded guilty to charges that the she stole nearly $90,000 in Social Security benefits from the federal government.
“This defendant’s repeated acts of criminal conduct lasted for more than eight years and cost the United States Treasury nearly $90,000,” said United States Attorney Sally Quillian Yates. “She deliberately and methodically broke the law that she swore to uphold as a deputy sheriff.”
“The Social Security Administration, Office of the Inspector is grateful for the support and diligent efforts by the US Attorney’s Office in prosecuting those that seek to defraud the Social Security Administration’s benefit programs,” said Thomas Caul, Special Agent in Charge, of the Office of the Inspector General for the Social Security Administration.
According to United States Attorney Yates, the charges and other information presented in court: Baquet’s father, who was a Social Security retirement benefits recipient, died in May 2006, and her mother died one month later. After her parents death, her father’s Social Security benefits continued to be deposited in a bank account that Baquet’s parents shared. For more than eight years, Baquet stole her deceased father’s benefits by writing checks to herself out of her parents’ joint account, forging her deceased mother’s signature on the checks. In total, she received $89,379.13 of government benefits to which she was not entitled.
Sentencing for Baquet, 56, of New Orleans, La., is scheduled for March, 4, 2015.
This case is being investigated by the Social Security Administration - Office of the Inspector General.
Special Assistant United States Attorney Diane C. Schulman is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
More Guilty Pleas in RICO Case Involving IronworkersRead the Press Release
PHILADELPHIA - Richard Ritchie, 45, of Philadelphia, William O’Donnell, 62, of Cherry Hill, NJ, and Christopher Prophet, 43, of Richboro, PA, pleaded guilty today to RICO conspiracy and other charges in connection with an extortion case in which Ironworkers Local 401 used violence and intimidation to get union members assigned to jobs on non-union worksites. In addition to the RICO conspiracy count, Ritchie and Prophet each pleaded guilty to attempted extortion which interferes with interstate commerce; and Ritchie also pleaded guilty to violent crime in aid of racketeering. United States District Court Judge Michael Baylson scheduled sentencing hearings as follows: Ritchie, April 28, 2015; O’Donnell, April 27, 2015; Prophet, April 17, 2015. The defendants are among 12 defendants charged in the case. All but one have pleaded guilty. Trial for the remaining defendant, Joseph Dougherty, is scheduled to begin January 5, 2015.
The 12 defendants charged had a network of individuals, friendly to the Ironworkers Local 401, to help identify construction projects and job sites where work was being performed without using Local 401 members. The business agents for the union would approach contractors at those work sites and imply or explicitly threaten violence, destruction of property, or other criminal acts unless union members were hired. The defendants relied on a reputation for violence and sabotage, which had been built up in the community over many years, in order to force contractors to hire union members. The defendants created “goon” squads, composed of union members and associates, to commit assaults, arsons, and destruction of property. One such squad referred to itself as the “The Helpful Union Guys,” “T.H.U.G’s.”
Ritchie faces a statutory maximum 60 years in prison; Prophet faces a statutory maximum sentence of 40 years in prison; and O’Donnell faces a statutory maximum sentence of 20 years in prison.
The case was investigated jointly by the Federal Bureau of Investigation and Department of Labor Office of Inspector General, with assistance provided by the Philadelphia Police Department Corruption Task Force, East Whiteland Township Police Department, the Upper Merion Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Employee Benefit Security Administration. It is being prosecuted by Assistant United States Attorney Robert Livermore with legal assistance provided by Gerald Toner, Acting Deputy Chief for Labor-Management Racketeering, Organized Crime and Gang Section at the Department of Justice.
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PATTY HARTMAN, Media Contact, 215-861-8525Monroe County Man Convicted of Multiple Counts of Fraud Relating to False Claims of Owning Billions of Dollars of Oil and Negotiable Bank InstrumentsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Richard J. Harley, of Shawnee on the Delaware, Pennsylvania, was convicted yesterday after a two-week trial before a federal jury sitting in Wilkes-Barre, Pennsylvania, of 23 counts of wire fraud, bank fraud, bankruptcy fraud, and making false statements on bankruptcy schedules. Harley was continued on bail and no date was set for sentencing. Senior U.S. District Judge A. Richard Caputo presided over the trial.
According to United States Attorney Peter Smith, Harley defrauded investors and attempted to defraud the Federal Reserve Bank of New York and several financial institutions by soliciting money based on false claims that his company, RJH and Co. Inc., owned 10 million barrels of oil in Texas worth over $1 billion and had “unrestricted bond power” over $5 trillion in federal reserve bank instruments supposedly held at the Federal Reserve Bank of New York. As a result of the fraud, investors lost approximately $323,800.
The bank fraud charge relates to Harley’s attempt to deposit two phony $500 million checks purportedly issued by the Federal Reserve Bank of New York into several financial institutions. Harley also filed three fraudulent bankruptcy petitions in 2010, 2011 and 2012 where he attempted to discharge the debt he owed to one of the primary victims of the oil scheme.
Harley was previously convicted of mail and wire fraud and sentenced to five years’ imprisonment in 2001 for a scheme that defrauded patients and investors relating to a fraudulent ozone-enema treatment he claimed cured AIDS. The jury verdict in the latest case relates to activities that occurred after Harley was released from federal prison.
Harley faces up to thirty years’ imprisonment on each wire fraud and bank fraud charge and up to five years’ imprisonment on each bankruptcy fraud and false statements charge, as well as substantial fines and restitution.
The case was investigated by the FBI and was prosecuted by Assistant United States Attorney Bruce Brandler, Chief of the Criminal Division.
Mining Company Sentenced for Epa ViolationsRead the Press Release
COLUMBUS, OHIO – Oxford Mining Company, LLC (Oxford) has been ordered to pay $650,000 in fines and community service for the negligent failure to report violations of the company’s permit in connection with its coal mining operations.
Carter 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), Ohio Attorney General Mike DeWine and Craig W. Butler, Director of the Ohio Environmental Protection Agency (Ohio EPA) announced the sentence imposed today by U.S. District Judge Edmund A. Sargus, Jr.
Oxford was fined $500,000 and ordered to pay $150,000 in community service as part of the sentence. The community service payment will be split equally between the Ohio EPA and the National Park Foundation (NPF). The Ohio EPA will use the money to study the watersheds in Southeast Ohio and the NPF will use the money to improve and restore the waterways that are part of the Hopewell Culture National Historical Park, located near Chillicothe, Ohio.
According to Court documents, Mr. Light was the Director of Environmental Compliance for Oxford and as part of his job duties was responsible for reviewing Oxford’s environmental compliance, including the submittal of reports to the Ohio EPA. As part of their permit, Oxford is required to report to Ohio EPA permit exceedances once they are discovered.
On numerous occasions between November 2007 and November 2011, Light submitted reports to Ohio EPA that showed sampling results that were in compliance with permit limits, although he knew that the sampling results actually showed violations of the applicable permit limits.
Oxford failed to adequately oversee the activities of Light, including those activities related to the submittal of reports to Ohio EPA. Because of this failure, Oxford was unaware that discharges from its surface mines were in excess of the permitted limits and that Light had submitted false statements to the Ohio EPA.
“Energy exploration and development is critical to our country’s future, but it must be done in compliance with the law.” U.S. Attorney Stewart said. “When a company provides false information to the EPA, it undermines our ability to monitor and protect the environment and the public so that we can be sure our waters are healthy and clean.”
“Ohio EPA’s Office of Special Investigations aggressively investigates environmental crimes, and, working with our partners of the Central Ohio Environmental Crimes Task Force, prosecutes those responsible,” said Ohio EPA Director Craig W. Butler. “I’m proud of the work done by our staff and all of the task force members including the U.S. EPA Criminal Investigation Division and the Ohio Bureau of Criminal Identification and Investigation.”
“Receiving accurate and honest information is critical to EPA’s commitment to protect human health and the environment,” said Randall K. Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Ohio. “Authorities must be assured that coal extraction byproducts are treated and disposed of safely and legally. Today’s sentencing demonstrates that companies that fail to comply with environmental regulations, placing the American people at risk, will be held accountable for their actions.”
Stewart commended the joint investigation by the Ohio Bureau of Criminal Investigation, Ohio EPA, the U.S. EPA Criminal Investigation Division and all members of the Central Ohio Environmental Crimes Task Force, as well as Assistant U.S. Attorney J. Michael Marous and Special Assistant U.S. Attorney Brad Beeson who prosecuted the case.Mankato, Minnesota, Woman Sentenced in Forced Labor CaseRead the Press Release
U.S. District Court Judge Susan Richard Nelson sentenced Tieu Tran, 59, of Mankato, Minn., to serve one year and one day in prison followed by 1 year supervised probation upon release, the Justice Department announced today. Tran pleaded guilty to one count of forced labor trafficking on March 25, 2014. Tran is the former owner and manager of Nails By Jordan, a nail salon located in Mankato.
According to evidence presented in court proceedings and documents, in 2008, Tran recruited a woman from Vietnam to travel to the United States using false promises of legal immigration status and a high-paying job. In reality, Tran smuggled the victim and two other Vietnamese nationals across the southern U.S.-Mexico border, imposed a significant debt upon her, and forced her to pay down the smuggling debt by working at Tran’s son’s Vietnamese restaurant, Pho Saigon, in Mankato.
Tran admitted to compelling the victim to work long hours without paying her as promised, using a scheme, plan and pattern of coercion, including manipulation of debts, isolation, and intimidation that held the victim in fear, knowing that the victim was without legal status and money, did not speak English, feared losing her family home in Vietnam to creditors, and had nowhere else to turn for subsistence.
“This defendant callously preyed on the victim’s vulnerabilities and exploited her labor through intimidation, debts, and isolation,” said Deputy Assistant Attorney General Mark Kappelhoff for the Civil Rights Division. “Human trafficking is an affront to human rights and to our nation’s core values, and the Justice Department is committed to vindicating the rights of the victims and to bringing human traffickers to justice.”
“Prosecuting human traffickers is a priority of this Office,” said U.S. Attorney Andrew M. Luger for the District of Minnesota. “Tieu Tran smuggled this victim into the United States who she forced to work long hours in her nail salon by isolating and intimidating her. This kind of abuse simply is unjust. I am proud to work with the Department of Justice and Federal Bureau of Investigation to end human trafficking in Minnesota.”
“The FBI remains committed to ensuring that innocent persons are not exploited by human traffickers,” said Special Agent in Charge Richard T. Thornton for the FBI Minneapolis Division. “There will be no safe harbor granted to those who prey upon vulnerable people. Those who exploit other human beings will continue to be high priority targets for the FBI.”
As part of her plea agreement, Tran agreed to nullify all debts imposed upon the victim, and upon seven other individuals. The Court further ordered that Tran pay 51,844 in restitution to the victim.
This case was investigated by the FBI and is being prosecuted by Trial Attorney William Nolan of the Civil Rights Division’s Human Trafficking Prosecution Unit and Assistant U.S. Attorney David Steinkamp of the U.S. Attorney’s Office for the District of Minnesota.
Man Indicted for Two Bank RobberiesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a man was indicted by a federal grand jury today for robbing two area banks in May 2014.
Lynn Brown, 55, address unknown, was charged in a two-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Brown stole $2,000 from Commerce Bank, 118 W. 47th Street in Kansas City, Mo., on May 10, 2014.
Brown is also charged with stealing $1,900 from Bank of America, 1104 S.W. 7 Hwy., in Blue Springs, Mo., on May 20, 2014.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney William L. Meiners. It was investigated by the FBI, the Kansas City, Mo., Police Department and the Blue Springs, Mo., Police Department.
Malvern Man Charged with Bank FraudRead the Press Release
Vincent Craven, Jr., 48, of Malvern, Pennsylvania was charged today by Information with one count of bank fraud, announced United States Attorney Zane David Memeger. According to the Information, Craven submitted false mortgage applications to Washington Mutual Bank and Wachovia Bank (now Wells Fargo) and defrauded Washington Mutual of approximately $490,391 and Wells Fargo of approximately $103,651.
If convicted the defendant faces a maximum possible sentence of 20 years in prison, three years of supervised release, a $1 million fine, a $100 special assessment, and restitution.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Terri A. Marinari.
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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Madison Resident Pleads Guilty to Firearm OffensesRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on December 15, 2014, Monte D. Perry, 26, of Madison, IL, pled guilty to a two-count Indictment charging him with Illegal Transfer of a Firearm and Unlawful Possession of a Firearm by a Previously Convicted Felon. On both counts, Perry faces a federal prison term of not more than ten years, a fine up to $250,000, or both, and a term of supervised release of not more than three years. Perry’s sentencing is scheduled for April 13, 2015, in East St. Louis, Illinois. Perry has been detained since his arraignment on the Indictment on September 26, 2014.
The charges arose from a controlled buy of a sawed-off shotgun from Perry, who had been convicted of a felony offense in Madison County in 2009. The controlled buy was videotaped. During the buy, Perry is heard discussing the characteristics of the gun, clearly indicating that he knew that the shotgun had been sawed-off. After being paid for the sawed-off shotgun, Perry wiped his prints from it before placing it in the backseat of the confidential source’s vehicle.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is assigned to Assistant United States Attorney Angela Scott.
Local Sex Offender Sentenced for Failure to Update RegistrationRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Kevin William Ward, 48, of Martinsburg, West Virginia, was sentenced to 37 months in prison for failing to register as a sex offender, United States Attorney William J. Ihlenfeld, II, announced today.
Ward was convicted in 2000 of “Second Degree Rape” in the Circuit Court of Montgomery County, Maryland. As a result of that conviction, he was required to register as a sex offender.
An investigation by the United States Marshals Service revealed that in February 2014, Ward moved from West Virginia to Ocala, Florida without updating his sex offender registration. Ward pled guilty in September 2014 to one count of “Failure to Register as Sex Offender.”
Assistant U.S. Attorney Jarod Douglas prosecuted the case on behalf of the government.
U.S. District Judge Gina M. Groh presided.
Littleton Man Sentenced for Implementing Mortgage Fraud SchemeRead the Press Release
DENVER – Peter V. Capra, age 57, of Littleton, Colorado, was sentenced yesterday by U.S. District Court Judge R. Brooke Jackson to serve 144 months in federal prison for wire fraud and money laundering, federal authorities announced. Following his prison sentence, Capra was ordered to serve 3 years on supervised release. Capra was also ordered by Judge Jackson to pay over $9 million in restitution. Capra was remanded into custody at the conclusion of the hearing.
Capra was found guilty on March 21, 2014, following a 8-day trial before Judge Jackson. The jury deliberated for two days before reaching their verdict. Capra was indicted by a federal grand jury in Denver on April 15, 2012, followed by a superseding indictment on May 23, 2012. As part of the mortgage fraud scheme, Demetrious G. Gianopoulos, and Brian Waring were charged in two separate indictments and Justin Knight was charged by an information. Gianopoulos pled guilty to one count of money laundering and was sentenced to five years’ probation. Knight pled guilty to destruction of records in a federal investigation and was sentenced to 12 months of home confinement. Waring pled guilty to conspiracy to commit mail fraud, wire fraud, and money laundering and was sentenced to 18 months in federal prison on September 25, 2014.
According to the indictment, superseding indictment and evidence presented at trial, Capra was the President of Golden Design Group, Inc. (GDG), a company which built and sold houses in the Denver metropolitan area. Capra was also the registered agent for Distinctive Mortgages, LLC, which used space within GDG’s office building and provided mortgages to some of the customers buying houses from GDG.
From January 2005 through July 2008, Capra, along with others, executed a scheme to defraud several mortgage lenders. The scheme was executed in connection with applications for residential mortgage loans and related documents associated with real estate purchases including but not limited to 33 properties in Parker, Colorado. Capra structured transactions involving GDG homes to allow buyers to receive substantial amounts of the lenders’ money at the time of closing without the knowledge of the lenders. He also sold a large volume of homes to otherwise unwilling or unqualified buyers. The evidence at trial showed that Capra netted over $11,000,000 as a result of his scheme.
Loan applications for the buyers were submitted through several different mortgage brokers that assisted with providing, or at least failing to question the accuracy of, false information submitted in connection with the applications, including materially false and fraudulent representations about the buyers’ income, liabilities, source of down payment, and intent to occupy the properties as their primary residences. At closing, funds ranging from $85,000 to over $200,000 were distributed to the buyers in ways that prevented the lenders from discovering that these funds were actually going to the buyers; these funds were not disclosed in the HUD-1 closing statements or were disguised in those statements.
Capra was charged with and found guilty of fourteen counts of wire fraud, two counts of mail fraud, and ten counts of money laundering. He was found not guilty of one count of obstruction of justice. Each count of wire and mail fraud carries a penalty of not more than 20 years in federal prison, and a fine of the greater of up to $250,000 or twice the gain or loss from the offense. Each count of money laundering carries a penalty of not more than 10 years in federal prison, and a fine of the greater of up to $250,000 or the value of the property involved in the transaction. At sentencing, the Judge will also consider entering an order of asset forfeiture, including all property constituting or derived from proceeds traceable to the commission of the offense, or a money judgment equal to the total proceeds taken.
This case was investigated by IRS Criminal Investigation, the Federal Bureau of Investigation, and the United States Postal Inspection Service. The case was prosecuted by First Assistant U.S. Attorney Robert Troyer and Chief of the Economic Crimes Section of the Criminal Division, Assistant U.S. Attorney Matthew Kirsch.
Lincoln Woman Sentenced for Embezzlement and Theft from an Employee Pension Benefit PlanRead the Press Release
United States Attorney Deborah R. Gilg announced that on December 16, 2014, United States District Court Judge Joseph F. Bataillon sentenced Karen L. Gagner of Lincoln, Nebraska, age 68, to a 5 year term of probation, following her conviction for embezzlement and theft from an employee pension benefit plan. Ms. Gagner was also ordered to make restitution in the amount of $36,815.30.
Ms. Gagner was the Secretary-Treasurer, Director and an owner of Gagner Restoration, Inc., a Nebraska corporation. Gagner Restoration, Inc. had established a 401(k) employee benefit plan for eligible employees’ retirement savings. Ms. Gagner served as the 401(k) employee benefit plan’s trustee. Ms. Gagner also acted on behalf of Gagner Restoration, Inc. as the 401(k) employee benefit plan Administrator.
Beginning January 2008 and continuing through September 2011, Ms. Gagner, without permission or authorization, caused 16 check transfers totaling $94,485.64 to be made from Gagner Restoration, Inc. employee 401(k) accounts. Ms. Gagner admitted she used the funds to sustain the operation of Gagner Restoration, Inc.
This case was investigated by the United States Department of Labor.
- Laredo Man Sentenced to Prison for Fleeing from Federal Officers
Key Largo Man Arraigned on Charges of Sex Trafficking of MinorsRead the Press Release
Key Largo resident and former overnight staff member of the Florida Keys Children’s Shelter was arraigned for his alleged role in sex trafficking of two minor female residents of the shelter.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Katherine Fernandez Rundle, Miami-Dade State Attorney, and Rick Ramsay, Sheriff, Monroe County Sheriff’s Office, made the announcement.
Ricky Jermaine Atkins, 28, and co-defendant Sandra Simon, 23, of Homestead, were previously charged with conspiracy to engage in sex trafficking of minors and sex trafficking of minors, in violation of Title 18, United States Code, Sections 1591(a)(1) and 1594(c). Atkins was arraigned before U.S. Magistrate Judge Alicia M. Otazo-Reyes. The court ordered that Atkins be detained pending trial.
According to the facts presented at today’s detention hearing, Atkins met the two minor female residents of the Florida Keys Children’s Shelter in Tavernier. In August 2014, he drove the victims from Tavernier to a motel in the Homestead area, where he introduced the minors to Simon. Atkins left the minors in the motel with Simon, who photographed them and arranged for them to conduct prostitution dates. During the several days that the minors stayed with Simon, Atkins visited them on multiple occasions, including once to pick up money that was earned during their prostitution, and once to drop off a cellular telephone. After several days, the two minors left Simon’s custody and traveled with another adult couple to Sarasota County, where they were recovered by law enforcement after a hit-and-run traffic accident.
Simon is currently in state custody and is scheduled to make her initial appearance in federal court on December 19, 2014, at 2:00 p.m., before Judge Otazo-Reyes.
Mr. Ferrer commended the investigative efforts of the FBI, Miami-Dade State Attorney’s Office Human Trafficking Task Force, Monroe County Sheriff’s Office, and North Port Police Department. The case is being prosecuted by Assistant U.S. Attorneys Seth M. Schlessinger and Elina A. Rubin-Smith.
An indictment is only an accusation, and the defendants are presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Kankakee County Man to Serve 23 Years in Prison for Repeated Crack Cocaine TraffickingRead the Press Release
Urbana, Ill. -- Edward Dorsey Sr., 42, of St. Anne, Ill., was sentenced yesterday to a term of 276 months (23 years) in federal prison for trafficking crack cocaine, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. Dorsey was also ordered to remain on supervised release for a period of eight years following completion of his prison sentence. U.S. District Judge Colin S. Bruce sentenced Dorsey within the advisory federal sentencing guideline range after finding that Dorsey was a career offender with two prior felony drug trafficking convictions. In fact, at the time he committed these offenses, Dorsey had five prior felony drug convictions and was serving a three-year term of supervised release for a prior federal drug crime.
On August 22, 2014, Dorsey appeared before U.S. Magistrate Judge David G. Bernthal and pleaded guilty to three separate counts of distributing crack cocaine in Kankakee County. During the plea, Dorsey admitted distributing more than 28 grams (approximately one ounce) of crack cocaine on two occasions, Nov. 21 and Dec. 18, 2013, and also distributing crack cocaine on Dec. 10, 2013. At sentencing, the United States presented evidence that, during his drug trafficking activities, Dorsey threatened to shoot any law enforcement officers investigating him. Dorsey has been in the custody of the U.S. Marshals Service since his arrest in this case.
A petition to revoke Dorsey’s federal supervised release remains pending. Dorsey was on federal supervised release because his prior 10-year federal sentence had been reduced to time served (three years and eight months) after the U.S. Supreme Court concluded that he should have been sentenced under the more lenient penalties of the Fair Sentencing Act. If Dorsey’s supervised release is revoked, he could be sentenced to up to three years in prison in addition to his new sentence for the drug trafficking charges.The charges are the result of an investigation by the Kankakee Area Project Safe Neighborhoods Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Kankakee Police Department, and the Kankakee County Major Crimes Task Force. The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller.
KC Man Sentenced to 30 Years for PCP Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for possessing PCP with the intent to distribute and for illegally possessing firearms.
Jerry D. Scott, 41, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to 30 years in federal prison without parole.
On Jan. 15, 2014, Scott was found guilty at trial of two counts of possessing PCP with the intent to distribute, one count of possessing PCP, two counts of being a felon in possession of a firearm and one count of possessing a firearm in furtherance of drug-trafficking crimes.
Law enforcement officers began conducting surveillance on Scott’s residence in March 2012 after receiving information from a confidential source that he was selling PCP and carrying firearms. At the time, Scott had five prior felony convictions, including possessing PCP and carrying a firearm.
A police detective saw Scott, who did not have a valid driver’s license, leave the house with another person and get into his black Lincoln Navigator, which was parked in front of the residence. When Scott started driving his vehicle, police officers conducted a traffic stop. Scott and his passenger, Candace I. Brown, both had outstanding Kansas City municipal warrants and were arrested.
An inventory search of the vehicle prior to towing was conducted and officers discovered PCP and a Jimenez 9mm handgun with no serial number in the center console of the vehicle. Officers also found a loaded Smith & Wesson 9mm handgun under the driver’s side floor mat.
Scott was also in possession of PCP on May 12, 2010. A Kansas City police officer drove past Scott’s parked vehicle and smelled the odor of PCP and marijuana. Officers saw a loaded Glock 10mm pistol in the driver’s side door pocket and Scott was placed under arrest. During an inventory search of the vehicle prior to towing, officers discovered a bottle of PCP in the center console.
On Aug. 16, 2010, Scott sold three PCP-dipped cigarettes to a confidential informant in a controlled undercover operation. Deputies from the Jackson County Sheriff’s Department executed a search warrant at Scott’s residence on Aug. 20, 2013, and found three bottles that contained PCP as well as drug paraphernalia.
This case was prosecuted by Assistant U.S. Attorney William L. Meiners. It was investigated by the Kansas City, Mo., Police Department, the Jackson County, Mo., Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.Justice Department and City of St. Anthony Village Resolve Lawsuit over Denial of Permit for Islamic CenterRead the Press Release
City of St. Anthony Village Agrees to Allow Abu Huraira Islamic Center a Permit to Worship in St. Anthony Business Center
Acting Assistant Attorney General for Civil Rights Vanita Gupta and U.S. Attorney for the District of Minnesota Andrew M. Luger today announced a settlement agreement in principle between the Department of Justice and the City of St. Anthony Village, Minnesota, resolving allegations that the city violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA). In June 2012, the City of St. Anthony Village denied Abu-Huraira Islamic Center’s application for a conditional use permit (CUP) to use the basement of the St. Anthony Business Center for religious assembly. The agreement, which must still be approved by the Saint Anthony City Council and a federal district judge in Minneapolis, will resolve the lawsuit filed in August, 2014 by the United States against the City of St. Anthony Village.
“The Department of Justice will remain vigilant to ensure that the freedom to worship is a reality for all," said Acting Assistant Attorney General Vanita Gupta. “We are pleased that the city worked with us to ensure that the rights of this congregation and others will be protected.”
“Four months ago, my office filed a civil rights lawsuit to protect the religious freedoms of the congregants of the Abu-Huraira Islamic Center,” said U.S. Attorney Luger. “We made it clear then that an injustice had been done to these Somali Minnesotans. After lengthy negotiations involving attorneys from my office and the Department of Justice, St. Anthony Village, and Abu-Huraira, we have reached a resolution that respects the Constitution and provides the worship space that Abu-Huraira sought. This agreement would not have been possible without the guiding hand of Magistrate Judge Jeffrey J. Keyes, whose wisdom and hard work brought us to this resolution. Today we all join together to announce with great pride that the Abu-Huraira Islamic Center has a new home in St. Anthony Village.”
The city has agreed, in principle, to create a Planned Use Development (PUD) at the property in question. The PUD will allow Abu-Huraira to use the St. Anthony Business Center for religious worship. The agreed upon language also stipulates that the city of St. Anthony Village will not treat Abu-Huraira or any other religious groups in a discriminatory manner by application of its zoning laws. The agreement also indicates that elected leaders, managers, and certain city employees will participate in educational training about requirements of RLUIPA. The city of St. Anthony Village will also make RLUIPA information available to the public through its website and will report periodically to the Justice Department.
On Aug. 27, 2014, the United States filed a lawsuit to enforce Abu-Huraira Islamic Center’s constitutional rights under RLUIPA and require the city of St. Anthony Village to allow Abu-Huraira’s religious assembly. The United States’ complaint alleged that denial of the permit imposed a substantial burden on Abu-Huraira’s exercise of religious worship. Moreover, the denial unlawfully disfavored a religious use, because the light industrial district where Abu-Huraira’s building is located allowed other, non-religious assemblies.
The United States specifically alleged that the denial of the conditional use permit substantially burdened members of Abu-Huraira in practicing their faith. Abu-Huraira members’ ability to exercise their religion was limited by their worship site options, including, but not limited to, the fact that members in the northern Twin Cities were burdened from praying together based on the length of time to travel to worship centers in south Minneapolis. Moreover, prayer space at locations in south Minneapolis were too small to accommodate members, many of whom often prayed in hallways or entryways, and prayer sessions were held in shifts to accommodate crowds.
After conducting a search for adequate prayer space lasting nearly three years, Abu-Huraira entered into a purchase agreement for the St. Anthony Business Center. Abu-Huraira chose the property because it is centrally located, has a basement measuring approximately 11,600 square feet and has ample parking for its congregation. The business center is in St. Anthony’s “light industrial” district, which permitted conditional uses for “assemblies, meeting lodges, and convention halls” at that time.
In February 2012, after consulting St. Anthony Village officials, Abu-Huraira applied for a CUP for assembly. The permit was denied on June 12, 2012, by a St. Anthony Village City Council vote of 4-1.
Attorneys from the Civil Rights Division of the United States Department of Justice and Assistant United States Attorneys for the District of Minnesota, Bahram Samie, Ana Voss, and Gregory Brooker, represented the United States in this matter.
RLUIPA, enacted in 2000, contains multiple provisions prohibiting religious discrimination and protecting against unjustified burdens on religion exercise. Persons who believe that they been subjected to religious discrimination in land use or zoning may contact the Housing and Civil Enforcement Section of the Justice Department’s Civil Rights Division at 1-800-896-7743. More information about RLUIPA, including a report on the first ten years of its enforcement, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
Jefferson County Man Guilty of Drug TraffickingRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 36-year-old Beaumont, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jonathan Van Johnson pleaded guilty on Mar. 18, 2014, to possession with intent to distribute phencyclidine (PCP) and was sentenced to 87 months in federal prison today by U.S. District Judge Marcia Crone.
According to information presented in court, on May 21, 2013, law enforcement officers executing search warrants at Johnson’s residence in Beaumont discovered approximately 536 grams of PCP, as well as additional drugs and paraphernalia consistent with drug trafficking activities. The search of Johnson’s residence and his arrest was the result of an investigation into illegal drug activity in the area. Johnson was indicted by a federal grand jury on Nov. 6, 2013 and charged with drug trafficking violations.
This case was investigated by the Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Jacksonville Man Pleads Guilty to Federal Charge of Advertising Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces today that James Patrick Foreman (44, Jacksonville) has pleaded guilty to a federal charge of advertising child pornography. He faces a mandatory minimum penalty of 15 years, up to 30 years, in federal prison, and a potential life term of supervision. Foreman has remained in the custody of the U.S. Marshals Service since his arrest in October 2014.
According to court documents, an FBI agent began an undercover investigation to identify individuals in northeast Florida who had access to and/or were trading images and videos depicting child pornography over the Internet. The agent determined that a computer in that area was hosting and trading images of child pornography using a peer-to-peer file sharing program. The subscriber information for this computer was traced to Foreman’s residence in Jacksonville.
On October 1, 2014, a federal search warrant was executed at Foreman=s residence. When interviewed, Foreman admitted that he had downloaded child pornography involving children of all ages, and had seen "1, 2, and 3-year-old" child pornography. He also admitted to exchanging passwords with other users, advising others as to the type of material that he was looking for, and allowing other users to browse his collection of child pornography.
Forensic analyses of Foreman’s computer revealed that it contained at least 500 videos and 1,500 images depicting child pornography, including a video depicting a toddler being sexually assaulted. Logs of online conversations between Foreman and others discussing exchanges of child pornography were also found during the search.
This case was investigated by the Federal Bureau of Investigation and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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.
Italian Shipping Company Pleads Guilty to Environmental Crimes for Concealing Vessel PollutionRead the Press Release
An Italian shipping firm based in Genoa, Italy, pleaded guilty to violating the Act to Prevent Pollution from Ships by falsifying required ships’ documents to hide the fact that the ship had illegally discharged oil contaminated waste into the ocean on multiple occasions, announced the Department of Justice Environment and Natural Resources Division, the U.S. Attorney’s Office for the Middle District of Florida, and the U.S. Coast Guard.
Carbofin S.PA. (Carbofin) agreed to plead guilty to three counts of violating the Act to Prevent Pollution from Ships related to the deliberate concealment of vessel pollution from its ship, the M/T Marigola, which called on Tampa on three occasions in 2013 and 2014 with a falsified oil record book. Under the terms of its plea agreement, Carbofin agreed to pay a $2.75 million criminal penalty, $600,000 of which will be designated as community service and used to support the protection and preservation of natural resources located in and adjacent to the Florida National Keys Marine Sanctuary.
Alessandro Messore, who served as the second engineer aboard the M/T Marigola, pleaded guilty to one count of violating the Act to Prevent Pollution from Ships for his role in the offense. A second officer, Carmelo Giano, who served as the ship’s chief engineer and was the person responsible for maintaining the ship’s oil record book, is expected to enter a plea to one count of violating the Act to Prevent Pollution from Ships on Friday.
According to documents filed in this case and statements made in court:
Carbofin owns and operates a fleet of commercial liquefied gas vessels, including the M/T Marigola. The investigation began on April 16, 2014, when the vessel called on the Port of Tampa to unload its cargo. U.S. Coast Guard inspectors boarded the ship to conduct a Port State Control examination. During that examination, two crewmembers approached the inspectors and provided them with a cell phone video that showed a black hose connected between two points in the engine room. After reviewing the video and speaking with the crewmembers, the inspectors were able to determine that the hose, known in the maritime industry as a “magic hose,” had been used on multiple occasions to discharge sludge, waste oil, and machinery space bilge water directly into the sea, bypassing the ship’s required pollution prevention equipment. Crewmembers told the inspectors that Giano has directed them on at least two occasions to discharge sludge, waste oil, and bilge water directly into the sea, while in international waters. Even though required to be, none of the magic hose discharges were recorded as required in the ship’s official oil record book maintained by Giano, thereby giving the false and misleading impression that all of the ship’s sludge, waste oil and machinery space bilge water were being properly treated and disposed of. The investigation also revealed that Messore, at the direction of Giano, had on several occasions ordered the ship’s engineering cadet to hook up the magic hose and then personally discharged discharge sludge, waste oil, and machinery space bilge water directly into the sea, under the cover of darkness, while the vessel was in international waters.
On ships like the M/T Marigola oily engine room waste known as sludge, waste oil, and bilge water are generated on a regular basis. Sludge is the by-product of the purification of the vessel’s lubrication and fuel oils that are used in electrical generation machinery and the main propulsion engine. Waste oil is the result of oil leakages from various machinery as well as from replacing lubrication oils in the machinery. Bilge water refers to the accumulation in the bilge, which is the bottom-most portion of the engine room, of oil and water that drips and leaks from the machinery. Sludge and waste oil can only be legally disposed of in two ways: (1) incineration in the vessel’s onboard incinerator; or (2) disposal to a barge or other shore-based disposal facility. Bilge water can also be disposed of in only two ways: (1) process through the onboard oil water separator and oil content meter resulting in an overboard discharge of water with no more than 15 parts per million (“ppm”) of oil, or (2) disposal to a barge or other shore-based disposal facility. Bilge water is transferred to, and stored in, the vessel’s bilge water holding tank. All disposals and transfers of sludge, waste oil, or bilge water, whether through incineration, use of the oil water separator, or transfer to a shore-based facility, must be recorded by the person or persons in charge of those operations in the vessel’s oil record book. On the M/T Marigola, chief engineer Giano maintained the oil record book and recorded all entries therein.
The case was investigated by the Coast Guard Investigative Service. The case was prosecuted by the U.S. Attorney’s Office for the Middle District of Florida and the Environmental Crimes Section of the U.S. Department of Justice.
Iowan Sentenced on Internet Enticement ChargesRead the Press Release
BOSTON – An Iowan man pretending to be a professional photographer was sentenced today in U.S. District Court in Boston for engaging in sexually explicit conduct via webcam.
Joshua Dunfee, 32, of Oxford Junction, Iowa, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 20 years in prison and 10 years of supervised release. In March 2014, Dunfee pleaded guilty to coercion and enticement of a child to engage in illicit sexual activity and production of child pornography.
Dunfee posed as a professional photographer from “Hunt Photography” who was seeking models online. He communicated with a Massachusetts mother and convinced her that he had a client willing to pay $20,000 for a mother-daughter bikini modeling contract. Over time, as part of his ruse, Dunfee directed the mother to “audition” her daughter via webcam for him to view, first in underwear and then naked. In November 2011, following the execution of a federal search warrant, a forensic examination of Dunfee’s seized computers recovered evidence of his exploitation of a second child in California.
United States Attorney Carmen M. Ortiz, Assistant Attorney General Leslie R. Caldwell of the Department of Justice’s Criminal Division, and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The case was investigated by the U.S. Postal Inspection Service, the Jones County (IA) Sheriff=s Office, the Massachusetts State Police, the Attleboro Police Department, and the Department of Justice’s High Technology Investigative Unit. Substantial assistance was provided by the U.S. Attorney=s Office for the District of Iowa. The case is being prosecuted by Assistant U.S. Attorneys Stacy Dawson Belf and David Tobin of Ortiz=s Major Crimes Unit and Trial Attorney Herbrina Sanders of the Department of Justice Child Exploitation & Obscenity Section.
This case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys= Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Iowa Man Sentenced to 20 Years in Prison for Using his Purported Photography Business to Entice a 10-Year-Old Girl to Pose Naked OnlineRead the Press Release
An Iowa man was sentenced to 20 years in prison today in the District of Massachusetts for enticing a 10-year-old girl to engage in sexually explicit conduct online, which he directed and watched live via a webcam.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Carmen M. Ortiz of the District of Massachusetts and Inspector in Charge Shelly Binkowski of the U.S. Postal Inspection Service (USPIS) made the announcement after sentencing by U.S. District Court Chief Judge Patti B. Saris of the District of Massachusetts.
Joshua Dunfee, 32, of Oxford Junction, Iowa, pleaded guilty in March 2014 to enticing a child to engage in illicit sexual activity and using a child to produce child pornography.
According to admissions in connection with his guilty plea, Dunfee posed as “John” from “Hunt Photography” on Facebook and communicated with a Massachusetts mother who was seeking employment as a model. In October 2011, Dunfee contacted the mother and told her that Hunt Photography had a client willing to pay $20,000 for a mother-daughter bikini modeling contract. Dunfee told the mother that in order to apply she would need to audition her daughter for him immediately, and persuaded the mother to take her 10 year-old daughter out of school.
Dunfee further admitted that he directed the mother to “audition” her daughter via webcam in a 48-minute video call. Knowing that she was a minor, Dunfee directed that the 10 year-old girl be posed in a bra and underwear and then completely naked.
On Nov. 3, 2011, federal agents executed a search warrant at Dunfee’s residence, where law enforcement had traced the illicit conduct via IP address records. A forensic examination of Dunfee’s computers revealed his use of Facebook, Skype and Windows Live Messenger Chat to communicate online while posing as Hunt Photography.
The case was investigated by the USPIS, the Jones County Iowa Sheriff’s Office, the Massachusetts State Police, the Attleboro Police Department and the Justice Department’s High Technology Investigative Unit. Substantial assistance was provided by the U.S. Attorney’s Office for the District of Iowa.
The case is being prosecuted by Trial Attorney Herbrina Sanders of the Justice Department’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Stacy Dawson Belf of the District of Massachusetts.
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 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.
Hudson Men Convicted of Food Stamp FraudRead the Press Release
Exchanged Hundreds of Thousands of Dollars of Food Stamps for Cash
ALBANY, NEW YORK – A federal jury in Albany returned its verdict following the four-day trial of MOFADDAL M. MURSHED, 37, and AHMED A. ALGAHAIM, 54, announced United States Attorney Richard S. Hartunian, Columbia County Sheriff David Bartlett, U.S. Department of Agriculture, Office of the Inspector General, Northeast Region Special Agent in Charge William G. Squires, Jr., and U.S. Department of Homeland Security, Homeland Security Investigations Assistant Special Agent in Charge Nicholas DiNicola.
The jury found both defendants guilty of one count of conspiracy to commit Supplemental Nutrition Assistance Program (“SNAP”) fraud and one count of SNAP fraud. They face up to 5 years in prison on each count and are scheduled to be sentenced on April 13, 2015, in Albany.
“The Supplemental Nutrition Assistance Program was established to assist low income citizens and their families in getting enough food to eat consistent, nutritious meals. People who defraud the SNAP program not only are defeating the purpose of the program but are manipulating our tax dollars, which pay for the program, for their own gain, which is intolerable,” said United States Attorney Richard S. Hartunian. “Our office will continue to work closely with partner agencies to intervene upon and end such abuse.”
“I’m very pleased to see this case brought to successful conclusion with today’s guilty verdicts,” said Columbia County Sheriff David Bartlett. “I applaud the work of our Welfare Fraud Unit and the other members of the Columbia County Welfare Fraud Taskforce, working hand-in-hand with our local, state and federal law enforcement partners to protect the financial integrity of our social welfare programs and ultimately safeguarding the taxpayers’ dollars from fraud and abuse. We will continue to aggressively investigate and prosecute these cases.”
Coconspirators FAISAL Q. MORSHED, 35, and IBRAHIM Q. MURSHED, 25, pleaded guilty to conspiracy to commit SNAP fraud and SNAP fraud on December 3, 2014. They, too, are scheduled to be sentenced on April 13, 2015, in Albany.
SNAP, formerly known as the Food Stamp Program, uses tax dollars to subsidize food purchases by eligible low-income households. SNAP benefits may only be used to purchase food in approved retail food stores, and may not be exchanged for cash.
MOFADDAL M. MURSHED owned D&D Deli & Grocery, in Hudson, New York, where AHMED A. ALGAHAIM, FAISAL Q. MORSHED, AND IBRAHIM Q. MURSHED worked as employees. The defendants generated hundreds of thousands of dollars in fraudulent proceeds by providing cash to SNAP beneficiaries in exchange for SNAP benefits.
The case was investigated by the Columbia County Sheriff’s Office, the U.S. Department of Agriculture, Office of Inspector General, the U.S. Secret Service, and the Department of Homeland Security, and is being prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
Hodgenville, Kentucky, Man Sentenced to 151 Months in Prison for Robbing Two BanksRead the Press Release
- Ordered to pay restitution in the amount of $10,144
LOUISVILLE, Ky. – A Hodgenville, Kentucky man was sentenced to 151 months in prison followed by (3) years of supervised release in U.S. District Court today, by Senior District Judge John G. Heyburn II, after admitting to robbing banks located in Hardin and Larue Counties in Kentucky, announced Acting U.S. Attorney John E. Kuhn, Jr.
Joshua Riley Spangler, age 29, previously admitted in court to robbing through force, violence and intimidation, the Cecilian Bank, located at 235 East Western Avenue in Sonora, Kentucky of $1,019. on January 15, 2013.
Further, defendant Spangler admitted to robbing through force, violence and intimidation, the Bank of Buffalo, located at 2441 Greensburg Road in Buffalo, Kentucky of $9,125. on February 27, 2013. Spangler was charged by federal grand jury indictment on November 20, 2013.
Based upon prior convictions for Bank Robbery in Campbellsville and Hodgenville, Judge Heyburn found, pursuant to the Federal Sentencing Guidelines, that Spangler was a Career Offender and enhanced Spangler’s sentence by an additional 50 months.
Spangler faced no more than 20 years in prison, a fine of $500,000 and a three year period of supervised release.
This case was prosecuted by Assistant United States Attorney Randy Ream, and was investigated by the Kentucky State Police and the Federal Bureau of Investigation (FBI).
Girls Softball Coach Arraigned on Child Pornography ChargesRead the Press Release
ATLANTA - Nicholas Mazza, who worked as a girls softball coach in Cobb County, Ga., has been arraigned on federal charges of distributing and possessing child pornography. Mazza was indicted by a federal grand jury on December 9, 2014.
“The victimization of children is one of the most heinous and despicable crimes imaginable,” said United States Attorney Sally Quillian Yates. “Distributing images of the sexual abuse of children on the Internet only compounds the harm done to the children. We will continue to vigorously pursue and prosecute those persons who collect and trade these images.”
According to United States Attorney Yates, the charges, and other information presented in court: In late October 2014, special agents of the Department of Homeland Security were monitoring a peer-to-peer program to identify individuals who were making child pornography available for others to download onto their computers. A peer-to-peer program allows users to share digital files directly with other persons who use the same program. The agents found that the defendant had child pornography videos available on his computer. After determining that this activity was occurring from his house in Powder Springs, Ga., they obtained a federal search warrant and executed it at the defendant's home on November 6, 2014. They found a computer and hard drive that contained thousands of images and videos of young girls being sexually abused.
Mazza, 66, of Powder Springs, Ga., was arrested on November 7, 2014. Prior to his arrest, he worked as a fast-pitch softball coach at “GeorgiaScout” in Cobb County for girls between the ages of 8 and 17 years. He was arraigned before United States Magistrate Judge Linda T. Walker.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.Assistant United States Attorney Paul R. Jones is prosecuting the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Gettysburg Attorney Sentenced to 15 Years in Federal Prison for Defrauding Clients of over $6 MillionRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that today in Harrisburg United States District Court Judge John E. Jones III sentenced Wendy Weikal-Beauchat, 46, to 15 years’ imprisonment plus restitution and forfeiture totaling over $12 million for wire fraud and money laundering in connection with the misuse of her clients’ funds.
In sentencing Weikal-Beauchat, Judge Jones stated that she had stolen from clients who were members of the depression and WWII generation and had undermined public trust in lawyers. He dismissed her statement that she had “messed up” by saying that her conduct was essentially stealing from her clients and that her apology, presented in court for the first time today, was “hollow.”
Judge Jones ordered Weikal-Beauchat to be taken into custody by U.S. Marshals to begin serving her sentence immediately after the hearing. The judge found that a sentence above the guideline range was necessary as a just punishment and to deter violations of the public trust. He ordered $6,365,913 in restitution and $6,341,451 in forfeiture. According to the U.S. Attorney’s Office, the restitution amount in this case is higher because it includes expenses incurred by the victims, such as legal fees, above and beyond the proceeds of the crime.
Approximately 30 of Weikal-Beauchat’s former clients and their family members attended the sentencing. Sixteen of them read statements to the court. Most emphasized the mental as well as financial harm inflicted on them and their families by Weikal-Beauchat’s fraud.
Weikal-Beauchat, who has since been disbarred, was an attorney with the Gettysburg firm of Beauchat and Beauchat, concentrating on estate, trust, and long-term care planning. According to the evidence presented by Assistant U.S. Attorney Joseph J. Terz, beginning in 2007, Weikal-Beauchat diverted approximately $6 million from a trust account she maintained for her clients at M&T Bank. Weikal-Beauchat used the crime proceeds to operate her law firm, and for vacations and other personal expenses. She falsely represented she could invest in certificates of deposit with high interest rates as a result of her “special relationship” with M&T Bank. She generated bogus bank CDs and distributed them to her clients to further mislead them.
When several clients and M&T Bank questioned Weikal-Beauchat’s handling of the funds and/or initiated complaints against her, she made false statements, submitted false documents and said that she had hired an accountant to help her respond to the questions about the law firm’s activities. In reality there was no accountant.
The details of the fraud scheme are presented in the government’s sentencing memorandum filed on Nov. 10, 2014, and in Judge Jones’ memorandum and order filed on Dec. 8, 2014.
The investigation was conducted by the Internal Revenue Service, Criminal Investigations, and the FBI’s Harrisburg office. The case was prosecuted by Assistant U.S. Attorney Joseph J. Terz and Special Assistant U.S. Attorney Brian Sinnett of the Adams County District Attorney’s Office, assisted by the U.S. Attorney’s Office Victim Witness Unit.
Weikal-Beauchat was charged in a criminal information filed by the U.S. Attorney’s Office on Nov. 4, 2013. She pleaded guilty on November 15.
Gettysburg Attorney Sentenced to 15 Years in Federal Prison for Defrauding Clients of over $6 MillionRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that today in Harrisburg United States District Court Judge John E. Jones III sentenced Wendy Weikal-Beauchat, age 46, to 15 years’ imprisonment plus restitution and forfeiture totaling over $12 million for wire fraud and money laundering in connection with the misuse of her clients’ funds.
In sentencing Weikal-Beauchat, Judge Jones stated that she had stolen from clients who were members of the depression and WWII generation and had undermined public trust in lawyers. He dismissed her statement that she had “messed up” by saying that her conduct was essentially stealing from her clients and that her apology, presented in court for the first time today, was “hollow.”
Judge Jones ordered Weikal-Beauchat to be taken into custody by U.S. Marshals to begin serving her sentence immediately after the hearing. The Judge found that a sentence above the guideline range was necessary as a just punishment and to deter violations of the public trust. He ordered $6,365,913 in restitution and $6,341,451 in forfeiture. According to the U.S. Attorney’s Office, the restitution amount in this case is higher because it includes expenses incurred by the victims, such as legal fees, above and beyond the proceeds of the crime.
Approximately 30 of Weikal-Beauchat’s former clients and their family members attended the sentencing. Sixteen of them read statements to the Court. Most emphasized the mental, as well as the financial harm inflicted on them and their families by Weikal-Beauchat’s fraud.
Weikal-Beauchat, who has since been disbarred, was an attorney with the Gettysburg firm of Beauchat and Beauchat, concentrating on estate, trust, and long-term care planning. According to the evidence presented by Assistant U.S. Attorney Joseph J. Terz, beginning in 2007, Weikal-Beauchat diverted approximately $6 million from a trust account she maintained for her clients at M&T Bank. Weikal-Beauchat used the crime proceeds to operate her law firm, and for vacations and other personal expenses. She falsely represented she could invest in certificates of deposit with high interest rates as a result of her “special relationship” with M&T Bank. She generated bogus bank CDs and distributed them to her clients to further mislead them.
When several clients and M&T Bank questioned Weikal-Beauchat’s handling of the funds and/or initiated complaints against her, she made false statements, submitted false documents and said that she had hired an accountant to help her respond to the questions about the law firm’s activities. In reality there was no accountant.
The details of the fraud scheme are presented in the Government’s Sentencing Memorandum filed on November 10, 2014 and in Judge Jones’ Memorandum and Order filed on December 8, 2014.
The investigation was conducted by the Internal Revenue Service, Criminal Investigations and the FBI’s Harrisburg office. The case was prosecuted by Assistant U.S. Attorney Joseph J. Terz and Special Assistant U.S. Attorney Brian Sinnett of the Adams County District Attorney’s Office, assisted by the U.S. Attorney’s Office Victim Witness Unit.
Weikal-Beauchat was charged in a criminal information filed by the U.S. Attorney’s Office on November 4, 2013. She pleaded guilty on November 15.
Gautier Man Sentenced to 48 Months in Prison for Firearms Theft ConspiracyRead the Press Release
Gulfport, Miss –Aubrey Knox, 35, of Gautier, was sentenced today to 48 months in federal prison followed by three years of supervised release in a case involving the theft of 46 firearms, including machine guns, from a federal firearms licensee, U. S. Attorney Gregory K. Davis announced today. He was also ordered to pay a $5,000 fine.
Knox entered a guilty plea on September 24, 2014, to conspiracy to commit crimes against the United States for his role in purchasing six of the stolen firearms.
This case was investigated by the Moss Point Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Annette Williams.
Former U.S. Postal Worker and Others Sentenced for Fraudulent Income Tax Refund SchemeRead the Press Release
ATLANTA - Kenneth Campbell, a/k/a “Scrilla,” Corey Thomas, a/k/a “Lil Corey,” Adrian Bridges, Juarez Johnson, Justin Cody, a/k/a “Decatur Slim,” and Aeshia Wilmore have been sentenced for their roles in a $1 million fraudulent income tax refund scheme.
“Identity theft unfortunately has become the crime of choice given the availability or stolen or lost personal information,” said United States Attorney Sally Quillian Yates. “With each offense, an innocent person’s financial livelihood is put at risk. We will continue to investigate and prosecute these crimes and will seek sentences that deter and punish this conduct.”“Identity thieves are becoming more devious, creative, and conniving,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS-Criminal Investigation. "These defendants perpetuated an elaborate scheme driven by insatiable greed and a blatant disregard for the tremendous damage inflicted on innocent victims. These criminals must be and will continue to be pursued in order to obtain justice for the victims as well as justice for our nation.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The sentencing of these individuals concludes an extensive criminal investigation that now holds those involved with victimizing so many accountable for their actions. The FBI will continue to work with its law enforcement partners in aggressively addressing these fraudulent tax refund schemes that not only victimize the U.S. Government but also those individuals whose identities have been stolen.”
According to Paul Bowman, Area Special Agent in Charge of the United States Postal Service, Office of Inspector General, “Adrian Bridges reflects just a very small percentage of employees who failed to uphold the trust and integrity placed in them. The U.S. Postal Service, Office of Inspector General takes these cases very serious and investigates them to the fullest extent of the law. The general public should be reminded that the majority of postal employees remain committed to exhibiting the highest moral character and trust that our customers expect and deserve.”
According to United States Attorney Yates, the charges and other information presented in court: From as early as July 2012 to October 2013, the defendants participated in a scheme to defraud the United States Department of the Treasury and the Michigan Department of Revenue by filing hundreds of fraudulent income tax returns using stolen identities. This type of scheme is commonly called stolen identity refund fraud. Campbell and Thomas used stolen personal identification information of hundreds of victims, along with fake wage and withholding information, to prepare numerous fraudulent tax returns, claiming over $400,000 in tax refunds. After the refunds were processed, Campbell and Thomas had the refunds applied to blank prepaid debit cards that they later used for their own benefit.
In order to increase the number of fraudulent tax refunds that they could receive at one time, Campbell and Thomas had the prepaid debit cards mailed to different addresses throughout the Atlanta area. Many of these addresses were associated with an apartment complex in Cobb County, Ga., where Bridges served as a mail carrier for the United States Postal Service. Working at the direction of Campbell, Bridges would retrieve the debit cards from the United States mail and deliver them to Campbell.
During the course of the scheme, Campbell recruited Johnson, then an employee of the Fulton County Ga., Superior Court Clerk's Office, to provide him with stolen identity information. In September 2013, Johnson accessed county databases on several occasions to obtain identity information for dozens of people who had been booked into the Fulton County Ga., Jail. Johnson later provided this identity information to Campbell.
Campbell also worked with other individuals to file fraudulent federal and state tax returns, including Justin Cody, a/k/a “Decatur Slim.” In a related case, Cody and his wife, Aeshia Wilmore, were charged for their involvement in a scheme similar to Campbell’s where they claimed over $600,000 in fraudulent tax refunds.
The defendants were convicted and sentenced by United States District Judge Steve C. Jones, as described below:
- Kenneth Campbell, a/k/a “Scrilla,” 31, of Atlanta, Ga., was convicted on charges of conspiracy to commit mail fraud and aggravated identity theft on August 26, 2014, after he pleaded guilty. On November 17, 2014, Campbell was sentenced to serve seven years and three months in federal prison and ordered to pay restitution in the amount of $139,610.
- Corey Thomas, a/k/a “Lil Corey,” 28, of Atlanta, Ga., was convicted on charges of conspiracy to commit mail fraud and aggravated identity theft on August 26, 2014, after he pleaded guilty. On November 20, 2014, Thomas was sentenced to serve five years and one month in federal prison and ordered to pay restitution in the amount of $114,754.
- Adrian Bridges, 43, of Mableton, Ga., was convicted on charges of conspiracy to commit mail fraud and mail theft on August 26, 2014, after he pleaded guilty. On December 16, 2014, Bridges was sentenced to serve four years in federal prison, three years of supervised release, and ordered to pay restitution in the amount of $81,878.
- Juarez Johnson, 30, of Atlanta, Ga., was convicted of identity theft on May 15, 2014, after he pleaded guilty. On July 30, 2014, Johnson was sentenced to serve one year of probation.
- Justin Cody, a/k/a “Decatur Slim,” 33, of Atlanta, Ga., was convicted on charges of theft of government funds and aggravated identity theft on November 22, 2013, after he pleaded guilty. On April 28, 2014, Cody was sentenced to serve seven years and three months in federal prison and ordered to pay restitution in the amount of $150,329.
- Aeshia Wilmore, 26, of Atlanta, Ga., was convicted of theft of government funds on November 22, 2013, after she pleaded guilty. On April 28, 2014, Wilmore was sentenced to serve two years in federal prison and ordered to pay restitution in the amount of $150,329.
This case is being investigated by the Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation, and the United States Postal Service Office of the Inspector General.
Assistant United States Attorney Nekia S. Hackworth prosecuted the case.
For further information, please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former North Miami Mayor Convicted for her Involvement in a Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
After a 12-day trial, a federal jury convicted former North Miami Mayor Marie Lucie Tondreau, a/k/a “Lucie Tondreau,” 54, for her recruitment of straw buyers and other conduct in an $8,000,000 mortgage fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Drew J. Breakspear, Commissioner, Florida Office of Financial Regulation, made the announcement.
As shown at trial, between December 2005 and May 2008, co-defendant Karl Oreste, 56, of Miramar, Florida, president of KMC Mortgage Corporation of Florida (KMC Mortgage), a mortgage lending business in North Miami Beach, identified residential properties in South Florida that were for sale. Oreste and Tondreau, who at the time was a community activist, hosted several radio show programs in the South Florida area in which they advertised the services offered by KMC Mortgage. Oreste and Tondreau recruited and paid some of the listeners who responded to those advertisements, as well as other individuals, to pose as borrowers and purchase properties identified by Oreste.
Oreste and co-defendant Okechukwu Josiah Odunna, a/k/a “O.J. Odunna,” 49, of Lauderdale Lakes, Florida, as well as other co-conspirators, prepared or caused to be prepared loan applications on behalf of straw borrowers recruited by Oreste and Tondreau. Odunna was an attorney previously licensed to practice law in Florida, and president of O.J. Odunna, P.A. and Direct Title and Escrow Services (Direct Title). These loan applications included false information relating to employment, wages, assets and intent to make the property being purchased a primary residence. The loan applications and documents were submitted by co-conspirators to various mortgage lenders throughout the United States. Once the loan applications were approved, the lenders wired funds to O.J. Odunna, P.A., Direct Title or other title companies for closing.
In some instances Oreste, Odunna and other co-conspirators created and submitted duplicate HUD-1 Settlement Statement Forms, which grossly inflated the true purchase price of the properties. HUD-1 Settlement Statements also falsely and fraudulently represented to the mortgage lenders that the straw borrowers had met their down payment and cash to close obligations, when, in fact, the straw borrowers had never made any such payments.
At closing, a portion of loan proceeds were disbursed to Oreste through his corporation, JR Investment and Mortgage Corporation, or other bank accounts controlled by him. In some instances, a portion of the loan proceeds was diverted to O.J. Odunna, P.A. or Direct Title accounts. Oreste disbursed some of the proceeds he received to pay Tondreau and other, as well as to pay the straw borrowers. Oreste also transferred a substantial portion of the funds to bank accounts of LTO Investment Corporation, a corporation controlled by Tondreau. Tondreau used funds deposited in LTO Investment Corporation’s bank accounts to make payments on the falsely and fraudulently obtained mortgages in order to maintain the loans, and to conceal and further the fraud. She also used a portion of the funds deposited into LTO Investment Corporation’s bank accounts for her own personal use and benefit. Finally, Tondreau also rented out the properties and collected rent for her own personal use and to further the conspiracy.
As further demonstrated at trial, over the course of the mortgage fraud scheme, Tondreau was involved in obtaining 13 fraudulent loans, for which the lenders have suffered losses in the amount of approximately $8,000,000.00. Tondreau received in excess of $300,000 into a business account controlled by her, and in excess of $100,000 into her personal bank accounts.
“Today’s conviction against Marie Lucie Tondreau is a success in our continuing efforts to fight mortgage fraud that jeopardizes our nation’s financial institutions,” said U.S. Attorney Wifredo A. Ferrer. “Tondreau abused her prominence in the community to perpetrate the $8,000,000 mortgage fraud scheme, which thanks to the efforts of my Office’s prosecutors and federal and state law enforcement we successfully unraveled. We will continue to investigate and prosecute individuals who engage in deceptive and fraudulent behavior, fueled by greed.”
“Marie Lucie Tondreau, a former mayor of North Miami, FL, and her co-conspirators devised a mortgage fraud scheme for their own personal enrichment,” said George L. Piro, SAC Miami. “Their desire to line their pockets with stolen loan proceeds has, instead of making them rich, resulted in an investigation, a trial and ultimately a conviction. Let this be a lesson to would-be mortgage fraudsters. The FBI remains committed to working with our law enforcement partners to root out this type of fraud.”
“Exploiting the trust of Floridians is atrocious,” said OFR Commissioner Drew J. Breakspear. “We thank the FBI and the United States Attorney’s Office of the Southern District of Florida for their hard work, which has led to this positive outcome. The Florida Office of Financial Regulation remains dedicated to thoroughly investigating those who prey upon others for illegal financial gain.”
Tondreau, who was remanded into custody, is scheduled to be sentenced on March 20, 2015, at 8:30 a.m., before U.S. District Judge Robert N. Scola, Jr. She faces a maximum term of 30 years in prison.
Oreste previously pled guilty to conspiracy to commit wire fraud and is scheduled to be sentenced on January 12, 2015, at 8:30 a.m., before Judge Scola.
Mr. Ferrer commended the investigative efforts of the FBI and Florida’s Office of Financial Regulation. The case is being prosecuted by Assistant U.S. Attorneys Lois Foster-Steers and Gera R. Peoples.
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.
Former Mayor of Martin Sentenced to 90 Months for Civil Rights Offenses, Fraud, Vote Buying and Identity TheftRead the Press Release
PIKEVILLE, KY - The former Mayor of Martin, Ky., has been sentenced to 90 months in federal prison for various crimes including civil rights offenses and identity theft.
On Monday, U.S. District Judge Amul Thapar sentenced the former mayor, Ruth Thomasine Robinson, 70, for conspiracy to violate civil rights, conspiracy to defraud the Social Security Administration, federal program fraud, aggravated identity theft and vote buying. Judge Thapar also sentenced Robinson’s husband, James “Red” Robinson, 64, to 40 months in prison for vote buying. Under federal law, the Robinsons must serve at least 85 percent of their respective prison sentences.
Thomasine Robinson was convicted in May of the vote buying and civil rights violations. According to evidence at the trial, Thomasine Robinson and her co-conspirators intimidated poor and disabled citizens in order to gain their votes during Robinson’s 2012 campaign for re-election. For instance, members of the conspiracy directed residents of public housing to vote by absentee ballot under the supervision of Thomasine Robinson or another member of the conspiracy. The conspirators also targeted residents of private housing owned and leased by Thomasine Robinson.
Trial testimony established that the conspirators completed absentee ballots, marking their choice of candidates, and instructing the voters to sign the pre-marked ballots. Voters who complied by voting for Thomasine Robinson received promises of better living arrangements and other considerations. Voters who did not comply faced eviction or the loss of priority for public housing. In addition, the evidence established that the defendants offered to pay several voters to vote for Thomasine Robinson.
Thomasine Robinson was convicted in February of the identity theft and fraud offenses. Evidence at the trial established that from 2006 until January 2013, Ginger Marie Halbert, a co-conspirator, was purportedly working on a volunteer basis with Thomasine Robinson; in reality, Halbert was secretly being paid with federal funds. The funds used to pay Halbert were intended for the Martin Community Center and the Martin Housing Authority. Some of the misdirected money was supposed to fund an after school program for city children. To conceal the scheme, the defendants allegedly arranged for the checks to be made payable to Halbert’s son.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Howard S. Marshall, Special Agent in Charge of the Federal Bureau of Investigation; Guy Fallen, Special Agent in Charge, Social Security Administration, Office of the Investigator General, Office of Investigations; and Jack Conway, Attorney General of Kentucky, jointly made the announcement today.
The investigation was conducted by the Federal Bureau of Investigation, Social Security Administration, and the Kentucky Attorney General’s Office. Assistant U.S. Attorneys Ken Taylor and Andy Boone prosecuted this case on behalf of the federal government.
Former Employee of U.S. Contractor in Afghanistan Indicted for BriberyRead the Press Release
A former employee of a U.S. contractor was indicted today in the Eastern District of Texas for allegedly soliciting and accepting bribes in exchange for his influence in awarding U.S. government-funded contracts in Afghanistan, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney John Malcolm Bales of the Eastern District of Texas.
George E. Green, 57, of Carrollton, Texas, was charged with conspiracy to structure financial transactions to avoid currency transaction reporting requirements, wire fraud and receipt of bribes in connection with a program receiving federal funds.
According to the indictment, Green was the former director of contracts, procurement and grants for International Relief and Development Inc. (IRD), and was part of a cooperative agreement between IRD and the U.S. Agency for International Development (USAID) that sought to promote long-term agricultural development in specific areas in Afghanistan.
The indictment alleges that while working for IRD in Afghanistan, Green solicited and received bribes totaling $66,000 from a representative of an Afghan firm that contracted with IRD. Some of those bribe payments were allegedly wired directly to an Italian automobile dealer for Green’s benefit. After returning to Texas, Green allegedly attempted to conceal the bribe proceeds by engaging in a conspiracy to structure cash deposits into his bank and credit card accounts to avoid mandatory cash reporting requirements. Additionally, even after leaving IRD, Green allegedly continued to solicit bribes from the Afghan firm by falsely claiming that he still had the ability to influence the contracting process.
The charges and allegations contained in the indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the Office of Special Inspector General for Afghanistan Reconstruction (SIGAR), FBI and USAID Office of Inspector General. The case is being prosecuted by Trial Attorney Mark H. Dubester on detail to the Criminal Division’s Fraud Section from SIGAR and Assistant U.S. Attorney Kevin McClendon of the Eastern District of Texas.
Former Commander of the Pacific Grove Police Department Pleaded Guilty to Possession of Stolen FirearmsRead the Press Release
SAN JOSE – John Nyunt pleaded guilty in federal court today, to possession of stolen firearms, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
Nyunt was a commander at the Pacific Grove Police Department (PGPD) and an instructor at the former police academy at the Monterey Peninsula College (MPC). In pleading guilty, Nyunt admitted to stealing assault rifles, shotguns, and semi-automatic pistols that the MPC was seeking to divest after its decision to close the police academy. The MPC asked Nyunt if the PGPD would accept them as a donation. Knowing that the PGPD did not want the firearms, Nyunt signed a memorandum of understanding with the MPC that falsely stated he was accepting the firearms on PGPD’s behalf, even though he was not authorized to execute such an agreement nor accept the firearms.
After the MPC relinquished possession of the firearms to Nyunt in or about August of 2009, he consigned most of them, including 27 Glock semi-automatic pistols and 5 Smith & Wesson semi-automatic pistols, to a firearms dealer, who over time sold them on Nyunt’s behalf, paying Nyunt the proceeds from those sales minus his commission. Nyunt took back five of the Glocks and personally sold or gave them to other people. In this manner Nyunt maintained possession and control of some or all of the firearms he stole from the MPC until in or about November of 2012, when he had disposed of the last of the guns.
Nyunt, 52, was charged by information on Dec. 11, 2014 with a violation of 18 U.S.C. § 922(j). This is Nyunt’s second pending federal case. Earlier this year, on May 13, 2014, Nyunt pleaded guilty in case no. CR-14-00235-BLF to extortion and wire fraud charges that, like the charges to which he pleaded guilty today, were based on his conduct while commander at the PGPD.
Nyunt’s consolidated sentencing hearing for both cases is scheduled for April 7, 2015, at 9:00 a.m., before the Honorable Beth L. Freeman, United States District Court Judge, in San Jose. The maximum statutory penalty for a violation of 18 U.S.C. § 922(j) is ten years imprisonment and a fine of $250,000, plus restitution. Pursuant to the binding plea agreement, if accepted by the court, the parties have agreed that the defendant should be sentenced to thirty months’ imprisonment, to run concurrent with his sentence in case no. CR-00235-BLF. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Philip A. Guentert is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Elise Etter. The prosecution is the result of an investigation by the FBI.
Former Collateralized Mortgage Obligations Bond Trader Sentenced for Multi-Million Dollar Securities Fraud SchemeRead the Press Release
TRENTON, N.J. – A former collateralized mortgage obligation (CMO) bond trader was sentenced today to 30 months in prison for engaging in a fraudulent trading scheme in which he manipulated the prices of CMOs by millions of dollars over a period of four years, U.S. Attorney Paul J. Fishman announced.
Douglas Green, 50, of Boca Raton, Florida, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to one count of securities fraud. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From May 2004 through June 2008, Green was a registered representative associated with Crocker Securities, a broker dealer that used the clearing services of Pershing LLC. Pershing, which is based in Jersey City, New Jersey, is one of the largest clearing firms in the United States. As Crocker’s clearing firm, Pershing received payments and securities from Crocker and handled record-keeping for the securities Crocker controlled.
Green traded a Crocker account on behalf of the firm. In June 2004, the account Green managed suffered significant trading losses, which continued to grow during the length of the fraudulent scheme. To conceal the losses, Green entered into fraudulent transactions designed to increase the price of the CMOs to correspond to and cover the increasing losses in the Crocker trading account.
Green admitted that to manipulate the price of the CMO he entered a fraudulent sale into Pershing’s trading system. As the settlement date of the trade approached, Green cancelled the fraudulent sale so it would not actually settle and thereby alert Pershing and the purported purchasers, who were unaware they were identified in the fake transaction.
Green also manipulated the price of the CMOs using a network of bond traders. The traders purchased the CMOs at Green’s direction and immediately sold them back to him at slightly elevated prices. As a result of Green’s fraudulent trading activity, the total price of the CMOs was artificially inflated by millions of dollars. When the scheme collapsed, Pershing lost millions of dollars when it was forced to liquidate the CMO positions in the Crocker account.
In addition to the prison term, Judge Wolfson sentenced Green to three years of supervised release and ordered him to pay $9.2 million in restitution.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent-in-Charge Aaron Ford, for the investigation which led to today’s sentence. He also thanked the Financial Industry Regulatory Authority for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney Paul A. Murphy of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov
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Defense counsel: Thomas Fitzpatrick, Esq. – New York, N.Y.
Former Chief Financial Officer for Miss Eaton, Inc. Sentenced for Tax EvasionRead the Press Release
OXFORD, Miss. – Felicia C. Adams, United States Attorney for the Northern District of Mississippi, together with Acting Special Agent in Charge, Jerome R. McDuffie with IRS Criminal Investigation-New Orleans Field Office announce:
William Dewey Harrison of Sun City, Arizona, was sentenced on December 11, 2014 by United States District Court Judge Michael P. Mills, in Oxford, Mississippi, following a guilty plea to one felony count of attempting to evade or defeat income tax in relation to his previous employment as Chief Financial Officer (CFO) of the company formerly known as Miss Eaton, Inc., a furniture manufacturer in Pontotoc, Mississippi.
Harrison was hired by Miss Eaton, Inc. as the CFO in 2000 and worked for the company until 2008. An investigation by the government revealed that over the course of his employment as CFO for the company, Harrison executed a scheme to embezzle funds. Harrison’s illegal scheme resulted in the embezzlement of over $600,000 dollars from the company which he then failed to report as income received, filing false and fraudulent income tax returns for the years 2004-2008. Additionally, Harrison failed in his fiduciary duty as CFO to properly withhold and pay employment taxes on behalf of Miss Eaton’s employees, instead diverting these funds for his own use. Acting Special Agent in Charge, Jerome R. McDuffie, stated, “Evading the assessment and payment of your income taxes is against the law. Mr. Harrison’s decision to break the law has earned him time in federal prison. The Special Agents of IRS-CI stand ready to pursue tax violators and will seek prosecution of these offenses to the fullest extent of the law.”
Judge Mills sentenced Harrison to fifty-one (51) months imprisonment, followed by three (3) years of supervised release and ordered Harrison to pay $2,312,353.69 in restitution to the Department of the Treasury-IRS.
This case was investigated by the Internal Revenue Service Criminal Investigation Division and prosecuted by Assistant U.S. Attorney Chad M. Doleac.
Former Bank Executive Vice President Pleads Guilty to Making False Financial Report to FDIC in Connection with Failure of Freedom State BankRead the Press Release
Oklahoma City, Oklahoma – MARK A. NIXON, 62, from Freedom, Oklahoma, pleaded guilty yesterday to submitting a falsified report of the financial condition of Freedom State Bank to the Federal Deposit Insurance Corporation (“FDIC”), announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. Nixon’s guilty plea comes approximately six months after the Bank’s failure on June 27, 2014.
Nixon was the former Executive Vice President of The Freedom State Bank, located in Freedom, Oklahoma. During his plea hearing, Nixon admitted to preparing and submitting a Consolidated Report of Condition and Income to the FDIC which falsely stated that The Freedom State Bank possessed $21,950,000.00 in assets, when he in fact knew that the true amount was substantially less.
Nixon was charged on December 4, 2014, with one count of submitting a false statement to the FDIC. In a written plea agreement, Nixon admitted that he was responsible for causing between $1,000,000.00 and $2,500,000.00 in losses to The Freedom State Bank, and agreed that he is subject to a sentencing enhancement for substantially jeopardizing the soundness of a financial institution.
At sentencing, Nixon faces up to five years in prison, followed by three years of supervised release, and a $250,000.00 fine. He will also be ordered to pay restitution to the FDIC in an amount later determined by the court. A sentencing hearing will be set by the court in approximately 90 days.
This case is the result of an investigation by the FDIC Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Julia E. Barry.
Foreign National Sentenced to Three Years in Prison for Smuggling Undocumented Migrants from Africa into the United StatesRead the Press Release
An Eritrean national, who is also a citizen of the United Kingdom, was sentenced today to three years in prison for smuggling up to 99 undocumented migrants from Eritrea and Ethiopia into the United States.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Ronald C. Machen Jr. of the District of Columbia, and Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Washington, D.C., Field Office made the announcement. U.S. District Judge Reggie B. Walton of the District of Columbia imposed the sentence.
Habtom Merhay, 47, of the United Kingdom, pleaded guilty to human smuggling charges on Sept. 24, 2014. He was originally arrested by Moroccan authorities in August 2013 and extradited to the United States on April 25, 2014. He has been in custody since his arrest.
In his plea agreement, Merhay admitted that from May 2009 to September 2010, he operated a human smuggling scheme from his residence in Dubai. In exchange for fees of up to $14,000, he smuggled undocumented African migrants into the United States by purchasing airline tickets for their travel to South and Central America, and then coordinating with a global network of smugglers to facilitate the migrants’ travel into the United States.
The investigation was pursued under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates with and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
The investigation was led by HSI’s Washington, D.C., Field Office with the support of the Human Smuggling Trafficking Center and the U.S. Customs and Border Protection’s National Targeting Center. The case was prosecuted by Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Frederick Yette of the District of Columbia. The extradition was handled by Trial Attorney Dan E. Stigall of the Criminal Division’s Office of International Affairs.
The Department of Justice and HSI expressed their appreciation for the significant assistance provided by the Moroccan Ministry of Justice.
Florida Man Sentenced for Wire FraudRead the Press Release
CONTACT: BARBARA BURNS
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Hector Ortiz, 49, of Altamonte Springs, Florida, who was convicted of committing wire fraud as part of an international commodity deal, was sentenced to 41 months in by U.S. District Judge Frank P. Geraci. The defendant was also ordered to pay restitution in the amount of $852,500.
Assistant U.S. Attorney Bradley E. Tyler, who handled the case, stated that between August 2011 and November 2011, the defendant devised a scheme to defraud Sweeteners Plus, Inc. in Lakeville, NY. Specifically, Ortiz attempted to obtain $7,862,500 from Sweeteners Plus by making multiple false and fraudulent representations in relation to a contract to deliver 12,500 metric tons of refined sugar. The sugar was never delivered, and Ortiz took $852,500 as a commission.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, and Postal Inspectors with the United States Postal Inspection Service, under the direction of Inspector In Charge Shelley Binkowski.