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16 December 2014
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
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
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
14-446
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.
Florida Man Charged with Marijuana TraffickingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistELKINS, WEST VIRGINIA – A federal grand jury returned an indictment today charging Arthur Woodrow Pritt, Jr., 37, of Archer, Florida, with marijuana trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Pritt is alleged to have repeatedly sold marijuana in Northern West Virginia from December 2008 through the present. In October 24, 2014 he was discovered in possession of marijuana. He is charged with one count of “Conspiracy to Distribute Marijuana” and one count of “Possession with Intent to Distribute Marijuana.”
Pritt faces up to five years in prison and a fine of up to $250,000 on each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Warner is prosecuting the case on behalf of the government. The case is being investigated by the Mountain Region Drug and Violent Crimes Task Force, the United States Forest Service, the West Virginia State Police, the Randolph County Sheriff's Office, the U.S. Drug Enforcement Administration, the U.S. Internal Revenue Service, the Harrison County Sheriff's Department, and the U.S. Postal Service.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Ferrelview Man Sentenced to 40 Years for his Role in Nationwide Child Porn RingRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Ferrelview, Mo., man was sentenced in federal court today for using four young victims to produce child pornography as part of a nationwide child pornography ring.
Raymond M. Appling, 32, of Ferrelview, was sentenced by U.S. District Judge Gary A. Fenner to 40 years in federal prison without parole.
On March 4, 2014, Appling pleaded guilty to four counts of producing or attempting to produce child pornography. Appling admitted that he took pornographic photos and video of four child victims, which he shared with others.
FBI agents had identified two suspects in Colorado and in San Diego, Calif., that linked Appling to the child pornography ring. Detectives with the Kansas City, Mo., Police Department executed a search warrant at Appling’s residence on Feb. 8, 2012, and seized computers, computer media and a camera. In an interview with the detectives, Appling identified a third member of the child pornography ring located in Pennsylvania. The other members of the child pornography ring are being prosecuted in those jurisdictions.
Appling admitted that he took a child victim, identified as Jane Doe #1, to visit the San Diego suspect, whom he knew had a sexual attraction to minors. Appling also took pornographic photos of Jane Doe #1 when she was eight years old.
Appling also took photos of a second child victim, identified as Jane Doe #2. Appling took photos of Jane Doe #1 and Jane Doe #2 together in the shower. Jane Doe #2 also told investigators that she had met the San Diego suspect at Appling’s home.
Appling took photos of a third child victim, identified as Jane Doe #3, while she was asleep on his couch. A series of photos depicts Appling moving Jane Doe #3’s clothes so that she is exposed, and Appling touching her.
Appling also produced a movie of a 12-year-old victim, identified as Jane Doe #4, while she was undressing and getting ready to take a shower.
A forensic examination of Appling’s computers, cameras, and computer media determined that an external hard drive had been wiped and reformatted. There was evidence on the external hard drive which indicated that videos with a sexual theme (including child pornography) were once on the hard drive. Evidence indicated that some of the movies that were once on the external hard drive were sent through the use of an encrypted instant messaging program. In addition, a large number of Yahoo! messenger chat fragments were recovered from several log files from Feb. 4, 2011 through July 5, 2011. In many of the chats the participants (including Appling and the other suspects) stated that they were actively engaged in sexual abuse and/or child pornography. There were also several unidentified participants engaged in the online chats.
This case was prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Federal Jury Convicts North Huntingdon Man on All Charges in Bankruptcy Fraud TrialRead the Press Release
PITTSBURGH - A Westmoreland County man has been convicted by a federal jury in Pittsburgh on charges of bankruptcy fraud, concealment of assets, and making false statements under oath, United States Attorney David J. Hickton announced today.
Michael J. Free, 62, of North Huntingdon, PA, had been charged in a six-count indictment that was tried to a jury before United States District Court Judge Mark R. Hornak. The jury returned guilty verdicts on all six counts.
According to the evidence presented during the trial, Free filed fraudulent documents during a bankruptcy that he filed in July of 2010. Among the matters for which he was convicted were filing a false Schedule A that failed to identify to the Bankruptcy Court a residence he owned in Fayette County, as well as a false Schedule B that failed to list the majority of the guns that Free had in a large collection of World War II era machine guns and rifles. The jury heard that at one point the Trustee supervising Free’s bankruptcy learned that Free was selling some of his guns through internet advertising. After the Trustee reported this activity to the Court the Bankruptcy Court judge ordered Free to file an accounting with the Court listing all the guns sold and how much he had received for each sale. Free filed yet another false document claiming that nothing had been sold and that there was nothing to account for. The jury also found Free guilty for lying under oath at a meeting of creditors held during the Bankruptcy process.
Judge Hornak did not set a sentencing date but indicated that sentencing would take place in approximately 120 days. The law provides for a maximum total sentence at each of the six counts of conviction of up to five years in prison, and a fine of up to $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation conducted the investigation, based on a referral by the Office of the United States Bankruptcy Trustee, leading to the charges in this case.
Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ----United States Attorney Bill Nettles stated today that a Federal Grand Jury in Columbia, South Carolina, returned Indictment(s) against the following: Nichols Man indicted for Solicitation to Commit a Hobbs Act Armed Robbery
David Lawrence Wallace, Jr., was charged in a 1-count Indictment with Solicitation to Commit Hobbs Act Armed Robbery, a violation of Title 18, United States Code, Section 373. The maximum penalty Wallace could receive is 10 years imprisonment. The case was investigated by agents of the Federal Bureau of Investigations and is assigned to Special Assistant United States Attorney M. Derrick McClellan of the Florence office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.Doctor Sentenced to 37 Months in Prison for Taking Bribes in Test-Referrals Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A pediatrician with a practice in Staten Island and Brooklyn, New York, was sentenced today to 37 months in prison for accepting bribes in exchange for test referrals as part of a long-running scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Demetrios Gabriel, 47, of Brooklyn, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of accepting bribes. Judge Chesler imposed the sentence today in Newark federal court.
Including Gabriel, 33 people – 22 of them physicians– have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies.According to documents filed in this and related cases and statements made in court: Gabriel admitted he accepted bribes in return for referring patient blood specimens to BLS and was paid more than $4,500 per month. Gabriel received a flat fee of $3,000 per month in cash, plus additional cash based on the number of patient blood samples his pediatric practice referred to BLS each month. In addition, Gabriel received $1,500 per month through credit card payments to a restaurant he owns.
In addition to the prison term, Judge Chesler sentenced Gabriel to one year of supervised release and fined him $75,000.
The investigation has recovered more than $10.3 million to date through forfeiture.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas O’Donnell; IRS– Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s guilty pleas.
The government is represented by Senior Litigation Counsel Andrew Leven, Assistant U.S. Attorney Joseph Minish, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $620 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
14-445Defense counsel: Joseph Corozzo Esq., New York; Joseph Hayden Esq., Roseland
Department of Justice and City of St. Anthony Village Agree to Resolve Lawsuit over Denial of Permit for Islamic CenterRead the Press Release
St. Anthony Village Agrees in Principle to Allow Abu-Huraira Islamic Center to Worship in St. Anthony Business Center
The United States Attorney for the District of Minnesota Andrew M. Luger and Acting Assistant Attorney General for Civil Rights Vanita Gupta today announced a settlement agreement in principle between the Department of Justice and the City of St. Anthony Village, Minn., 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, the Department of Justice, and a federal district court judge in Minneapolis, will resolve the lawsuit between the United States and the City of St. Anthony Village.
“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 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.” On August 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 CUP 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 spaces 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.
On December 11, 2014, after a settlement conference lasting nearly twelve hours before Magistrate Judge Jeffrey J. Keyes, 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.
Assistant United States Attorneys for the District of Minnesota, Bahram Samie, Ana Voss, and Gregory Brooker, and attorneys from the Civil Rights Division of the United States Department of Justice, 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.ST ANTHONY CONSENT ORDER
Curious Goods LLC Co-Conspirators Sentenced for Synthetic Marijuana Sales SchemeRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Curious Goods LLC and six individuals charged in a synthetic marijuana sales and money laundering scheme operated through the company’s retail stores were sentenced today. United States District Judge Elizabeth E. Foote presided over the hearings.
Curious Goods LLC was ordered to pay a $40,000 fine. The company was also ordered to forfeit $859,989 in illegal proceeds derived from the scheme, as well as two cars and a speed boat. Also sentenced today was one of the company’s owners, Richard Buswell of Lafayette. Buswell was sentenced to 103 months in prison and three years of supervised release. Five other co-conspirators were also sentenced today as follows:
Defendants
Prison term
Supervised release
Fine
Counts
Drew Green
117 months
3 years
$20,000
1
Tommy Malone
117 months
3 years
$20,000
1
Boyd Barrow
70 months
3 years
1
Josh Espinoza
61 months
3 years
1
Daniel Francis
42 months
1 year
2
In September of 2012, Curious Goods LLC and co-conspirators: Alexander Derrick Reece, 42 of Gainesville, Fla.; Drew T. Green, 40 of Roswell, Ga.; Thomas William Malone, Jr., 48 of Roswell, Ga.; Boyd Anthony Barrow, 46 of Canton, Ga.; Joshua Espinoza, 51 of Marietta, Ga.; Richard Joseph Buswell, 46 of Lafayette, La.; Daniel Paul Francis, 44 of Dawsonville, Ga.; and Daniel James Stanford, 57, of Lafayette, La., were charged by a grand jury in a 16-count indictment with conspiracy to distribute synthetic drugs (Count 1), conspiracy to introduce misbranded drugs into interstate commerce (Count 2), conspiracy to commit money laundering, and various money laundering charges (Counts 3 to 16).
At the time of the indictment, Curious Goods LLC was a business based in Lafayette that marketed smoking and other products in stores throughout Acadiana. Curious Goods stores sold a product called “Mr. Miyagi” that was infused with synthetic cannabinoids. Although mislabeled as a potpourri, “Mr. Miyagi” was sold to be smoked for the sole purpose of getting the consumer of the product “high.” The synthetic cannabinoids infused into “Mr. Miyagi” are considered Schedule I controlled dangerous substances under federal law. From March 1, 2011 to December 31, 2011, Curious Goods stores made approximately $5 million from the sale of the illegal “Mr. Miyagi” product.
Barrow and Espinoza controlled and operated Pinnacle Products LLC/Pinnacle Products Group, based in Marietta, Ga. Pinnacle was the manufacturer of the “Mr. Miyagi” products and supplied the products to the local Curious Goods stores. Pinnacle obtained the synthetic cannabinoids used to manufacture “Mr. Miyagi” from NutraGenomics, which was located in an Alpharetta, Ga., and was controlled by co-conspirators Green and Malone. NutraGenomics distributed synthetic cannabinoids throughout the United States.
“This case is a huge victory for the people of Acadiana,” U.S. Attorney Finley stated. “The defendants in this case intentionally sold a dangerous drug that was shamelessly marketed to young people. Too many members of our community were lured into the Curious Goods stores that sold this poison. This case highlights how lucrative this industry is and reveals the lengths that criminals are willing to go to profit while endangering the health and safety of citizens. Dedicated men and women of federal, state and local law enforcement fought to bring these defendants to justice. They are to be commended for years of hard work to get these illegal substances off the streets and hold these criminals accountable. I hope that store owners, franchisees, investors and distributers who want a make a fast buck at the expense of others think twice and understand that we will not hesitate to investigate and prosecute their criminal activity.”
The remaining defendant, Lafayette lawyer Daniel Stanford, is scheduled to be sentenced on January 15, 2014. Stanford was convicted after an eight-day jury trial on August 29, 2014. Read more at: www.justice.gov/usao/law/news/wdla20140829.
The DEA, FBI, IRS, HSI, Louisiana State Police, Lafayette Parish Sheriff’s Office, Iberia Parish Sheriff’s Office, Vermillion Parish Sheriff’s Office and the Lafayette Police Department conducted this investigation. Assistant U.S. Attorneys John Luke Walker, J. Collin Sims, and Robert C. Abendroth prosecuted the case.
Court Enters $360,000 Consent Judgment Against Auto Dealership and Advertising CompanyRead the Press Release
In a stipulated judgment entered by the district court, the Billion Auto Group, which has facilities in Sioux City, Iowa City, and Clive, and an advertising company, Nichols Media, have agreed to a $360,000 judgment to resolve claims that they violated a Federal Trade Commission consent order prohibiting deceptive advertising when marketing the cost of buying or leasing a car.
“If auto dealers make advertising claims in headlines, they can’t take them away in fine print,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “These actions show there is a financial cost for violating FTC orders.”
“Our office is committed to working with the FTC and the Consumer Protection Branch of the Department of Justice to ensure a fair marketplace for Iowa consumers,” said Kevin W. Techau, United States Attorney for the Northern District of Iowa. “The action taken in this case is an important step to protect Iowans and sends an important message to the marketplace.”
The FTC authorized the Department of Justice to file a complaint against the chain of 20 Billion Auto automobile dealerships in Iowa, Montana, and South Dakota, and an advertising company, Nichols Media, Inc., for violating a 2012 FTC consent order. That order prohibits Billion Auto, and any companies in active participation with it, from misrepresenting material costs and terms of vehicle finance and lease offers. The order also requires specific disclosures, mandated by the Truth in Lending Act and the Consumer Leasing Act.
According to the complaint, Billion’s advertisements violated the 2012 FTC consent order by frequently focusing on only a few attractive terms while hiding others in fine print, through distracting visuals, or with rapid-fire audio delivery. For example, some dealership ads promoted low monthly payments or attractive annual percentage rates and finance periods, while concealing other material items, such as the low payments being for leases, not sales; major limits on who could qualify for discounts; and significant added costs.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 5:14-cv-4118.
Convicted Sex Offender from North Port Sentenced to 14 Years for Transportation of Child PornographyRead the Press Release
Tampa, FL – U.S. District Judge Charlene Edwards Honeywell has sentenced Alexander Vugler (45, North Port) to 14 years in federal prison for transportation of child pornography. He also was ordered to serve a life term of supervision following his release from prison. In addition, the Court forfeited a laptop computer, hard drive, wireless air card, and a cell phone, that had been used to commit the offense. A restitution hearing to determine compensation for the victims will be set for a later date. Vugler pleaded guilty on September 19, 2014.
According to court documents, in May 2009, an undercover FBI agent in San Diego downloaded 188 files depicting child pornography that Vugler had made available on an Internet peer-to-peer file sharing program. At the time, Vugler was on probation for a contact sex offense that had occurred in Broward County. A federal search warrant was executed at Vugler’s North Port residence. Agents seized a laptop computer and a hard drive that contained more than 1,000 images and videos depicting child pornography, as well as file-cleaning software that Vugler had used to destroy evidence of child pornography.
This case was investigated by the Federal Bureau of Investigation and the Charlotte County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Josephine W. Thomas.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Convicted Felon Sentenced to 481 Months in Prison for String of Louisville Area Armed RobberiesRead the Press Release
- Prosecution Part of Project Recoil
LOUISVILLE, Ky. – A Louisville convicted felon was sentenced recently in U.S. District Court by Senior Judge Thomas B. Russell, to 481 months in federal prison, followed by five years of supervised release, for the armed robbery of eleven area convenient stores and fast food restaurants in December, 2012, and January, 2013, announced Acting U.S. Attorney John E. Kuhn, Jr. The charges stemmed from “Project Recoil” – an initiative for more effective prosecution of violent criminals in Louisville that relies upon collaboration among federal, state and local law enforcement and prosecutorial agencies.
Troy Lemont Gaines, age 23 of Louisville, and co-defendant Shaundrell Robinson, age 34 of Louisville, were charged in a 22 count federal indictment on April 2, 2013. The defendants have prior felony convictions and were charged with eleven armed robberies between December 5, 2012 and January 3, 2013 in Metro Louisville and Radcliffe, Kentucky. During one robbery, a shot was fired by Gaines while in a struggle with a customer. Gaines was arrested by Louisville Metro Police (LMPD) on January 5, 2013, immediately after robbing a Speedway gas station located 8325 Preston Highway.
Co-defendant Shaundrell Robinson was previously sentenced on November 11, 2014 by Senior Judge Thomas B. Russell to 216 months in prison followed by a three year period of supervised release.
“We have concluded the prosecution of this terrible frenzy of armed robberies, and the collaboration of our state and local partners has been instrumental in getting this done,” said Acting U.S. Attorney Kuhn. “ ‘Project Recoil’ is proving to be a highly effective tool in dealing with violent crime in our community. Lengthy sentences for violent repeat offenders are one important part of a comprehensive approach to building a safer community, and we value the support of our state and local partners for this program.”
The United States was prepared to present evidence, according to court records, that included: video surveillance of the armed robberies while in progress, a police dash-cam video showing Gaines arrest while still wearing a ski mask, a Lorcin semi-automatic pistol, magazine, five rounds of ammunition removed from the magazine and two shell casings found on the sidewalk outside the China Express restaurant that was held-up on December 19, 2012, an audio clip of Gaines’ statement to LMPD, video still photos signed by Gaines, a black ski mask and a loaded 9mm pistol seized from Gaines at the time of his arrest.
In July 2014, Gaines pleaded guilty to 11 counts of robbery affecting interstate commerce and two counts of brandishing a firearm during a crime of violence. The charged armed robberies included the Super Stop Food Mart, located at 7303 Preston Highway, on December 5, 2012, and on December 14, 2012. The armed robbery of the Meijer store, located at 4600 South Hurstbourne Parkway in Louisville, on December 15, 2012. The armed robbery of JR Liquors 2 store, located at 13018 Dixie Highway, in Louisville, on December 19, 2012. The armed robbery of the Circle P Shell Food Mart, located at 1500 North Dixie Highway in Radcliff, Kentucky, on December 19, 2012. The armed robbery of the China Express restaurant, located at 4946 Poplar Level Road in Louisville, on December 20, 2012. The armed robbery of the Berry Petroleum store, located at 1871 Berry Boulevard in Louisville on December 27, 2012. The armed robbery of Thornton=s store, located at 12412 LaGrange Road in Louisville, on December 31, 2012.The armed robbery of the Speedway store, located at 3030 Taylor Blvd. in Louisville, on December 31, 2012. The armed robbery of White Castle restaurant, located at 2711 Fern Valley Road in Louisville, on January 3, 2013. The armed robbery of Speedway store, located at 8325 Preston Highway in Louisville, on January 5, 2013.
Gaines faced a total minimum sentence of 257 years in prison and up to 5 years of supervised release per charge and a fine of $250,000 per charge.
This case was prosecuted by Assistant United States Attorney Robert Bonar and was investigated by the Louisville Metro Police Robbery Unit.
Connecticut Man Who Violated Federal Food, Drug, and Cosmetic Act Is SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that WESLEY SKORSKI, 44, of Marlborough, will pay a $1,000 fine for violating the Federal Food, Drug and Cosmetic Act. U.S. Magistrate Judge Donna F. Martinez imposed the sentence today in Hartford federal court.
According to court documents and statements made in court, SKORSKI owned and operated AviaMed, a Wethersfield-based business licensed by the State of Connecticut to engage in the wholesale distribution of medical devices and prescription drugs under the Federal Food, Drug, and Cosmetic Act. As part of the operation of AviaMed, SKORSKI received orders for prescription drugs from physicians and other health care providers.
In 2010 and 2011, SKORSKI entered into agreements with suppliers in the United Kingdom and Canada to receive prescription drugs, including oncology and dermatology drugs, which were commercially manufactured or produced outside the U.S. for distribution in foreign markets. After receiving the drugs from the foreign suppliers, SKORSKI repackaged them and distributed them to health care providers in the U.S. outside Connecticut.
The drugs SKORSKI received from foreign suppliers failed to contain the labeling required by the Food and Drug Administration, and were not approved for sale within the U.S. As a result, the drugs were considered misbranded under the Food, Drug, and Cosmetic Act.
On September 23, 2014, SKORSKI pleaded guilty to a misdemeanor charge of introducing a misbranded drug into interstate commerce, in violation of the Federal Food, Drug, and Cosmetic Act.
This investigation was conducted by special agents from the Food and Drug Administration, Office of Criminal Investigations. The case was prosecuted by Assistant U.S. Attorney David J. Sheldon.
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(203) 821-3722 [email protected]Coldwater Man Guilty of Mail FraudRead the Press Release
OXFORD, Miss. – Felicia C. Adams, United States Attorney for the Northern District of Mississippi, Mississippi State Auditor Stacey Pickering, and Jerome R. McDuffie, Acting Special Agent in Charge, IRS-Criminal Investigation Division, New Orleans Field Office, announce that:
Eric Davis, 54, of Coldwater, Mississippi, was sentenced Thursday by United States District Judge Michael P. Mills in Oxford, Mississippi, to 70 months imprisonment for a mail fraud scheme that employed the personal identification information of state prisoners in Tennessee and Mississippi to file false tax returns. His sentence is consecutive to a State of Mississippi sentence he is currently serving. In addition, Davis was ordered to pay $223,245.19 in restitution to the United States Treasury, 3 years supervised release, and a $100 special assessment.
Davis pled guilty on June 5, 2014 to an indictment charging him with conspiracy to commit mail fraud in violation of 18 U.S.C. §§ 1341 and 1349. “Mr. Davis will have a lengthy prison term to contemplate the consequences of his wrong doing,” said Jerome R. McDuffie, Acting Special Agent in Charge, IRS-Criminal Investigation Division, New Orleans Field Office. “I would additionally warn others who might consider this type of criminal behavior, that IRS-CI will not stand idly by and ignore these attempts to steal taxpayer dollars. We will continue our diligent pursuit to seek prosecution of cases involving identity theft and tax fraud.”
This case was investigated by Special Agents of the IRS Criminal Investigation Division and by Agents of the United States Postal Inspection Service and was prosecuted by Assistant United States Attorney Clay Joyner.
Chinese National Pleads Guilty to Conspiring to Violate Arms Export Control ActRead the Press Release
ALBUQUERQUE – Wentong Cai, 30, a Chinese national in the United States on a student Visa, pleaded guilty this morning to conspiracy to violate the Arms Export Control Act and the International Traffic in Arms Regulations (ITAR) by scheming illegally to export defense articles with military application to the People’s Republic of China. The guilty plea was announced by Damon P. Martinez, U.S. Attorney for the District of New Mexico, and Tom Hernandez, Acting Special Agent in Charge of Homeland Security Investigations (HSI) in El Paso, Texas.
During today’s change of plea hearing, Wentong Cai pled guilty to Count 3 of a superseding indictment charging him and his cousin, Bo Cai, 29, also a Chinese national, with a scheme to illegally export sensors primarily manufactured for sale to the U.S. Department of Defense for use in high-level applications, such as line-of-sight stabilization and precision motion control systems. The Arms Export Control Act and the ITAR prohibit the export of defense-related materials from the United States without obtaining a license or written approval from the U.S. Department of State.
In his plea agreement, Wentong Cai admitted that from March 2012 to Dec. 2013, he conspired illegally to export sensors from the United States to China without first obtaining the required export license. At the time, Wentong Cai was a graduate student at Iowa State University studying microbiology and Bo Cai was employed by a technology company in China. According to the plea agreement, Wentong Cai and Bo Cai embarked on an illegal scheme to smuggle sensors out of the United States to China for one of Bo Cai’s customers despite knowledge that the sensors could not be exported without a license and that the United States did not issue licenses to export the sensors to China. As part of the scheme, Bo Cai enlisted Wentong Cai to acquire the sensors under the ruse that he planned to use the sensors in his research at Iowa State University.
Court filings indicate that the investigation of this case began in Oct. 2013, when an undercover HSI agent responded to Wentong Cai’s overtures. After negotiations by telephone and email, Bo Cai and Wentong Cai traveled to New Mexico in Dec. 2013, where they obtained a sensor from undercover HSI agents and developed a plan for smuggling the sensor out of the United States to China. On Dec. 11, 2013, Bo Cai was arrested at an airport in Los Angeles, Calif., as he was preparing to board a flight to China after the sensor was discovered concealed in a computer speaker in his luggage. Wentong Cai subsequently was arrested on Jan. 22, 2014, in Ames, Iowa.
Wentong Cai is in federal custody and remains detained pending his sentencing hearing, which has yet to be scheduled. Under the terms of his plea agreement, Wentong Cai will be sentenced to 18 months of imprisonment. He will be deported to China after he completes his prison sentence.
Bo Cai pleaded guilty on July 23, 2014, to all three-counts of the superseding indictment charging him with violating the Arms Export Control Act, smuggling, and conspiracy. Bo Cai is in federal custody and remains detained pending his sentencing hearing. He faces a statutory maximum penalty of 20 years in prison on the Arms Export Control Act charge, ten years in prison on the smuggling charge, and five years on the conspiracy charge. Under the terms of his plea agreement, Bo Cai will be deported after completing his prison sentence.
The Albuquerque office of HSI led the investigation of this case with assistance from the U.S. Air Force Office of Special Investigations, the Defense Security Service, HSI in Iowa and Los Angeles, Calif., and the FBI. Iowa State University cooperated throughout with HSI’s investigation. Assistant U.S. Attorneys Dean S. Tuckman and Fred J. Federici of the District of New Mexico are prosecuting the case with assistance from Deputy Chief Deborah Curtis and Trial Attorneys David Recker and Brian Fleming of the Justice Department’s National Security Division, Counterespionage Section, the U.S. Attorney’s Office for the Central District of California and the U.S. Attorney’s Office for the Southern District of Iowa.
California Man Sentenced for Interfering with Flight CrewRead the Press Release
PHILADELPHIA - Robert Coppack, 41, of LaVerne, California, was ordered today to spend five months in community confinement and to pay $53, 354 in restitution for interfering with a flight crew. On May 13, 2014, Coppack intimidated and assaulted flight crew members and flight attendants on a US Airways flight traveling from Philadelphia to London, and interfered with their duties and performance. He pleaded guilty September 17, 2014. In addition to the confinement, U.S. District Court Judge John R. Padova ordered the defendant to refrain from alcohol and illegal controlled substances, submit to testing for alcohol and drug testing, and participate in alcohol and mental health treatment while on supervised release.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations, the Federal Bureau of Investigation, and the Joint Terrorism Task Force, and is being prosecuted by Assistant United States Attorney Sarah L. Grieb.
Caldwell Restaurant Owner and Music Promoter Sentenced for Tax EvasionRead the Press Release
BOISE – Rogelio Contreras Villasenor, 49, of Caldwell, Idaho, was sentenced yesterday to 41 months in prison for conspiracy to attempt to evade and defeat tax, U.S. Attorney Wendy J. Olson announced. United States District Judge Edward J. Lodge also ordered Villasenor to serve three years of supervised release following his prison sentence and pay a $20,000 fine. He pleaded guilty on July 10, 2014. Last week, Villasenor attempted to withdraw his guilty plea. At yesterday’s sentencing hearing, Villasenor testified under oath that his prior attorney failed to advise him of potential defenses. His prior counsel also testified after Judge Lodge waived his attorney-client privilege. His prior counsel advised Judge Lodge that he had informed Villasenor of any and all potential defenses. Judge Lodge denied his motion to withdraw his guilty plea and ruled that the defendant falsely testified under oath. Villasenor’s sentence was enhanced for obstructing justice.
According to court documents, Villasenor, owned and operated Tacos Michoacan for almost two decades. Villasenor admitted that beginning in 2005, and continuing to 2011, he conspired to fail to report $1,176,506.91 in income. At sentencing, Judge Lodge found that Villasenor derived some of his unreported income from illegal outdoor marijuana grows on public lands, methamphetamine, marijuana, and cocaine trafficking. As part of his plea agreement, Villasenor agreed to civilly forfeit real property, bank accounts, and a vehicle. Additionally, Villasenor agreed to a tax assessment of at least $329,421.93 to the Internal Revenue Service.
The case was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration, in conjunction with, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Canyon County Narcotics Unit, Meridian Police Department, Ada County Sheriff’s Office, Idaho State Police, and the Mini-Cassia Drug Task Force. Other federal agencies participating in the OCDETF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Bureau of Prisons Inmate Pleads Guilty to Assaulting A Correctional OfficerRead the Press Release
SACRAMENTO, Calif. —Cresencio Ochoa-Tovali, 46, of Mexico, pleaded guilty today to assaulting a federal correctional officer, United States Attorney Benjamin B. Wagner announced.
According to court documents, on July 27, 2014, a fight broke out between inmates in the recreational yard at the Federal Bureau of Prisons Correctional Institution in Herlong, California. Ochoa-Tovali, an inmate, was in the recreation yard at that time. A correctional officer entered the yard in an attempt to control the situation and ordered the inmates to sit or crouch on the ground. All inmates complied, including Ochoa-Tovali, who was facing a small group of inmates approximately 10 to 15 yards away. The correctional officer heard Ochoa-Tovali shouting names at the small group of inmates and approached Ochoa-Tovali. Suddenly, Ochoa-Tovali jumped up from his crouching position and struck the officer’s face.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
Ochoa-Tovali is scheduled to be sentenced by United States District Judge John A. Mendez on March 24, 2015. Ochoa-Tovali faces a maximum statutory penalty of eight years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Buffalo Man Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Travis Birdsong, 35, of Buffalo, NY, who was convicted of possession with intent to distribute 28 grams or more of crack cocaine, was sentenced to 60 months by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that on June 5, 2013, Special Agents with the Drug Enforcement Administration searched a vehicle that the defendant was in and seized a quantity of crack cocaine. Also on June 5, law enforcement officers searched the defendant’s residence and seized a quantity of cocaine and scales and packaging materials. In addition, a confidential informant purchased cocaine from Birdsong on two separate occasions.
The sentencing is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.
Buffalo Man Pleads Guilty to Bank RobberyRead the Press Release
CONTACT: BARBARA BURNS
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney William J. Hochul announced today that Ronald McClendon, Jr., 27, of Buffalo, NY, pleaded guilty to bank robbery before Chief U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine, or both.
According to Assistant U.S. Attorney Mary Catherine Baumgarten, on July 5, 2013, McClendon drove Adlyn Marie Echevarria Robles to the M&T Bank at 1580 Hertel Avenue in Buffalo. Robles entered the bank, passed the teller a demand note for money, and threatened that she had a bomb. The teller handed over money to Robles who exited the bank and was driven from the scene by McClendon.
On July 24, 2013, the defendant drove Robles to the M&T Bank at 709 Elmwood Avenue in Buffalo. Again, Robles entered the bank, passed the teller a demand note for money, and threatened that she had a bomb. The teller handed over money to Robles, who exited the bank and was driven from the scene by McClendon.
Robles was convicted of bank robbery and sentenced to 24 months in prison.
The plea is the culmination of an investigation by the Federal bureau of Investigation Safe Streets Task Force.
Ronald McClendon, Jr. is scheduled to be sentenced on April 29, 2014 at 9:00 a.m. before Judge Skretny.