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Tuesday 28 October 2014
U.S. Attorney Announces Office Collected over $100 MillionRead the Press Release
BOISE – United States Attorney Wendy J. Olson announced today that her office's Financial Litigation Unit collected more than $100 million in civil debts and in criminal fines, assessments and restitution for the fiscal year that ended September 30, 2014. U.S. Attorney Olson stated that the Financial Litigation Unit collected $11,469,290 in criminal fines, assessments, and restitution, and $86,151,947 in civil debts. In addition, the Asset Forfeiture Unit collected approximately $4.6 million of proceeds of crime from convicted criminals.
“The more than $100 million our staff collected through civil debts, asset forfeiture, fines, assessments and restitution is more than ten times the U.S. Attorney's Office's operational budget,” said Olson. “Our dedicated collection staff of attorneys, paralegals, analysts and fiscal agents ensure that those who owe the federal government money as a result of litigation in this district or as a result of longtime debt, such as student loans, make appropriate payments. Our asset forfeiture staff likewise works efficiently to deprive criminals of the profits of their crimes. This year, they have all done outstanding work and served this office, taxpayers and the federal government well.”
The Financial Litigation Unit collects civil penalties for violations of regulations involving, among other things, controlled substances, environmental protection, damage to federal property, and procurement fraud. It also collects civil debts for defaulted student loans and defaulted federally financed mortgages, working with debtors to arrange viable payment plans. During fiscal year 2014, the office collected over $86 million in civil debt. Of that, the office collected $85.8 million from EPA violations concerning release of hazardous substances. This includes the final payments from Hecla Mining Company as part of the settlement reached September 8, 2011, resolving claims stemming back to the 1980s for cleanup costs from releases of wastes from Hecla’s mining operations. Hecla has paid the United States a total of $189,345,889.42. The settlement, which also included payments to the Coeur d’Alene Tribe and the State of Idaho, totaled $263.4 million plus interest. Payments were made through a structured settlement, with the final payment being due August 15, 2014. This was one of the largest cases ever filed under the Superfund statute. The settlement funds were dedicated to restoration and remediation of natural resources in the Coeur d’Alene Basin.
The U.S. Attorney’s office also collected approximately $89,891 in defaulted student loans and $168,596 in fire suppression costs for human-caused fires.
From convicted criminals, the U.S. Attorney's Office collects fines, assessments, restitution, and asset forfeitures. Victims of crime receive funds collected in criminal restitution cases. In fiscal year 2014, the U.S. Attorney's Office collected over $6 million in criminal restitution which was distributed to victims of crime. Other criminal collections such as fines go into the Crime Victims Fund. From there, funds are distributed to the Idaho Crime Victims Compensation Program, the Idaho Council on Domestic Violence and Victim Assistance, and similar programs across the country. Money recovered from the illegal proceeds of criminal activity through forfeiture is returned to victims, used to offset the costs of operating federal prisons, and shared with local, state, and federal law enforcement agencies to help fight crime. Other recoveries go back to agency creditors.
On March 4, 2014, the United States District Court sentenced Elaine Martin for tax fraud and ordered her to pay $156,578.57 in restitution. The United States Attorney’s Office collected the full amount. Garth Callaghan was sentenced on July 30, 2012, for failing to pay employment taxes to the IRS. His criminal judgment imposed $177,096 in federal restitution. The United States Attorney’s Office collected the full amount during the past fiscal year. As a result of his schemes to defraud retirement plans, Matthew Hutcheson was tried and convicted of seventeen counts of wire fraud on April 15, 2013, and sentenced on July 7, 2013. His criminal judgment imposed $5,307,688.00 in restitution with interest. Collections to date total over $14,000 and will be distributed to individual victims pending the final appeal order. Further collection efforts are under way.
U.S. Attorney Announces Memphis Man Is Sentenced to 20 Years in Federal Prison for Being A Felon in Possession of AmmunitionRead the Press Release
Memphis, TN – Edward L. Stanton III, United States Attorney for the Western District of Tennessee announced today that Brashard Gibbs, age 21, of Memphis, TN, was sentenced on Friday by U.S. District Judge Sheryl H. Lipman to serve 20 years in federal prison followed by three years of supervised release. There is no parole in the federal prison system.
According to the Indictment and statements made in open court, on August 28, 2013, during a drive-by shooting at a car wash located at 2562 Lamar Avenue in Memphis, Tennessee, Robbie Webb was shot and killed and another individual was injured. Witnesses identified Brashard Gibbs, a.k.a. Hotboy, as one of the shooters. Witnesses also observed that Gibbs was firing an assault style weapon from the vehicle. Ammunition, consistent with the firing of an assault style weapon, was recovered from the scene.
In addition, on September 1, 2013, witnesses observed Gibbs firing an assault style weapon at another individual. Again, the ammunition recovered from the scene was consistent with the firing of an assault weapon. At the time of both incidents, Gibbs was a convicted felon.
On February 18, 2014, a federal grand jury indicted Gibbs on two counts of possession of ammunition by a convicted felon. On July 24, 2014, a jury found Gibbs guilty on both counts.
U.S. Attorney Stanton praised the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Multi-Agency Gang Unit. Assistant U.S. Attorney Kevin Whitmore represented the government.
Two Former Police Officers Plead Guilty to Using Excessive Force When Tasing a WomanRead the Press Release
Eric Walters, 39, and Franklin Brown, 35, formerly police officers with the City of Marion Police Department, in South Carolina, pleaded guilty yesterday in federal court to using excessive force against a woman with mental disabilities on April 2, 2013, the Justice Department announced today.
Walters and Brown each pleaded guilty to one count of deprivation of rights under color of law for using unreasonable force for their role in repeatedly tasing the victim when she posed no threat to either officer. Walters and Brown pleaded before U.S. District Court Judge Bryan Harwell in federal court in Florence, South Carolina.
According to the information and facts presented in court, in the course of detaining the victim, Walters tased the victim causing her to fall to the ground and injure her head. Once on the ground, Walters continued to tase the victim multiple times. Brown, subsequently, arrived on scene and proceeded to tase the victim as she was seated on the curb, restrained in handcuffs, and surrounded by law enforcement. In court, Walters and Brown admitted there was no legitimate law enforcement purpose for repeatedly tasing the victim as she did not pose a threat to the officers.
“The defendants abused their authority as law enforcement officers by repeatedly tasing a defenseless, compliant victim,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “The Justice Department will continue to vigorously prosecute those who cross the line to engage in acts of criminal misconduct.”
“Law enforcement officers are entrusted with the state’s police powers to maintain and restore order,” said U.S. Attorney Bill Nettles for the District of South Carolina. “In this case, the officers abused that authority, and purposefully hurt the victim who at the time posed no threat to these officers or anyone else. No just society can tolerate this sort of abuse by those who wear the badge. I’d like to thank the Federal Bureau of Investigations, the South Carolina Law Enforcement Division, the Department of Justice Civil Rights Division and the team in my office who worked together to ensure that these officers were held accountable for their misdeeds.”
Sentencing will be scheduled at a later date. Walters and Brown face statutory maximum penalties of 10 year sentences in prison and $250,000 fines.
The case was investigated by the Columbia Division of the FBI and is being prosecuted by Assistant U.S. Attorney John Potterfield of the District of South Carolina and Trial Attorneys Nicholas Murphy and Henry Leventis of the Civil Rights Division.
Two Former Police Officers Plead Guilty to Using Excessive Force When Tasing a WomanRead the Press Release
Contact: (202) 514-2007
WASHINGTON – Eric Walters, 39, and Franklin Brown, 35, formerly police officers with the City of Marion Police Department, in South Carolina, pleaded guilty yesterday in federal court to using excessive force against a woman with mental disabilities on April 2, 2013, the Justice Department announced today.
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Walters and Brown each pleaded guilty to one count of deprivation of rights under color of law for using unreasonable force for their role in repeatedly tasing the victim when she posed no threat to either officer. Walters and Brown pleaded before U.S. District Court Judge Bryan Harwell in federal court in Florence, South Carolina.
According to the information and facts presented in court, in the course of detaining the victim, Walters tased the victim causing her to fall to the ground and injure her head. Once on the ground, Walters continued to tase the victim multiple times. Brown, subsequently, arrived on scene and proceeded to tase the victim as she was seated on the curb, restrained in handcuffs, and surrounded by law enforcement. In court, Walters and Brown admitted there was no legitimate law enforcement purpose for repeatedly tasing the victim as she did not pose a threat to the officers.
“The defendants abused their authority as law enforcement officers by repeatedly tasing a defenseless, compliant victim,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “The Justice Department will continue to vigorously prosecute those who cross the line to engage in acts of criminal misconduct.”
“Law enforcement officers are entrusted with the state’s police powers to maintain and restore order,” said U.S. Attorney Bill Nettles for the District of South Carolina. “In this case, the officers abused that authority, and purposefully hurt the victim who at the time posed no threat to these officers or anyone else. No just society can tolerate this sort of abuse by those who wear the badge. I’d like to thank the Federal Bureau of Investigations, the South Carolina Law Enforcement Division, the Department of Justice Civil Rights Division and the team in my office who worked together to ensure that these officers were held accountable for their misdeeds.”
Sentencing will be scheduled at a later date. Walters and Brown face statutory maximum penalties of 10 year sentences in prison and $250,000 fines.
The case was investigated by the Columbia Division of the FBI and is being prosecuted by Assistant U.S. Attorney John Potterfield of the District of South Carolina and Trial Attorneys Nicholas Murphy and Henry Leventis of the Civil Rights Division.
DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.Two Charged in $5.8 Million Reloadable Debit Card Extortion ScamRead the Press Release
NEWARK, N.J. – Two Philadelphia men were arrested this morning for allegedly conspiring to extort victims to load prepaid debit cards with funds that were stolen as part of the scheme, U.S. Attorney Paul J. Fishman announced.
Special agents of the FBI and U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI) arrested Alpeshkumar Patel, 30, and Vijaykumar Patel, 39, of Philadelphia at Vijaykumar Patel’s home on a complaint charging them with conspiracy to commit wire fraud. The pair, who are not related, are expected to appear this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to the complaint unsealed today:
From September 2013 through March 2014, Alpeshkumar Patel and Vijaykumar Patel were part of a conspiracy to steal money using reloadable debit cards. First, the conspirators would purchase reloadable Green Dot Cards, and register them in names other than their own. The conspirators – some of whom were located in India – contacted victims by phone and used threats or deceit to induce them to put money on MoneyPak cards, which are used along with assigned PIN codes to add funds to Green Dot Cards. The conspirators then used the reloadable cards to purchase money orders that were deposited into bank accounts. All of the steps were taken quickly so law enforcement and victims could not identify the conspirators or prevent or reverse the fraudulent transfers.
As one example, a retail store located in New Jersey received a telephone call from an unknown caller on Sept. 10, 2013. The caller said there was a bomb in the store and the store manager had five minutes to comply with the caller’s demands or the bomb would detonate. The caller then demanded the manager load 10 $500 MoneyPak cards and provide the caller with the associated PIN codes. The manager had provided the code for one card before law enforcement arrived at the store, instructed the manager to hang up the phone, and evacuated the building.
The $500 associated with that code was transferred to an existing prepaid reloadable Green Dot Card. Surveillance video showed Alpeshkumar Patel in the Philadelphia CVS where the Green Dot Card was bought. That card was then used by Vijaykumar Patel, who was caught on video purchasing two money orders in a Philadelphia Wal Mart. The money orders, in turn, were used to deposit funds into a bank account.
Phone numbers and IP addresses associated with the Sept. 10, 2013, call and other calls tied to the conspiracy were tied to approximately 2,500 Green Dot Cards that were funded in excess of $5.8 million.
The charge of conspiracy to wire fraud carries a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, or twice the gross profits to the defendants or twice the gross loss suffered to the victims of the offense.
U.S. Attorney Fishman credited special agents, detectives and investigators assigned to the Joint Terrorism Task Force, under the direction of FBI Special Agent in Charge Aaron T. Ford in Newark, under the direction of FBI Special Agent in Charge Edward J. Hanko in Philadelphia, and special agents of HSI, under the direction of Special Agent in Charge Andrew McLees in Newark, with the ongoing investigation. Special agents of HSI, under the direction of Special Agent in Charge John Kelleghan in Philadelphia, assisted with the arrest.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendants are considered innocent unless and until proven guilty.14-389
Defense counsel:
Alpeshkumar Patel: Assistant Federal Public Defender K. Anthony Thomas Esq., Newark
Vijaykumar Patel: James A Plaisted Esq., Roseland, New JerseyPatel, Alpeshkumar and Vijaykumar Complaint
Two Alleged Pimps Facing Federal Indictment for Kidnapping and Sex Trafficking of a ChildRead the Press Release
Baltimore, Maryland - A federal grand jury returned a superseding indictment today against Rayvon O. Archibald, a/k/a “P Money,” “Keyvon M. Malone,” “Keyvon Smith,” and “Snoopy,” age 24, of Boston, Massachusetts, and Jonathan M. Went, a/k/a “Jon Maxx,” and “Max Out,” age 30, of Massachusetts and Gwynn Oak, Maryland. The original indictment charged Archibald and Went with sex trafficking of a child. The superseding indictment adds charges for conspiracy, transportation of a minor with intent to engage in prostitution, and kidnapping.The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Baltimore County State’s Attorney Scott Shellenberger.
The four count superseding indictment alleges that Archibald and Went were pimps, engaged in the business of recruiting, transporting, providing, and maintaining by any means females to engage in commercial sex acts. Archibald and Went used the internet to purchase and post advertisements for commercial sex in Maryland, New York, and elsewhere.
According to the superseding indictment, on March 5, 2014, Archibald encountered Girl 1, a female under the age of 14, in New York City and provided her with alcohol and drugs. On March 6, 2014, Archibald transported Girl 1, against her will, traveling by bus from New York to White Marsh, Maryland, then by taxi to Went’s apartment in Gwynn Oak. That same day, Archibald and Went allegedly posted an advertisement on a commercial sex website soliciting customers for Girl 1 which listed the number for a phone controlled by Archibald and Went. They also instructed Girl 1 on pricing for commercial sex acts and provided her with a document that included prices.
The superseding indictment alleges that on March 6 and March 7, 2014, Archibald and Went communicated with potential commercial sex customers and made appointments for Girl 1 by telephone and text messages; took money from customers in exchange for making Girl 1 available to engage in sex acts; and provided condoms to Girl 1 and the customers to facilitate sex acts involving Girl 1. Further, the indictment alleges that Archibald slapped Girl 1 across the face after she failed to obtain money for Archibald and Went from a commercial sex customer, and that Archibald took a mobile device away from Girl 1. She had been using the device in an attempt to alert her mother and law enforcement officers about her situation and location.
Archibald and Went face up to life in prison for conspiracy to commit sex trafficking of a child; a minimum of 15 years and up to life in prison for sex trafficking of a child; a minimum of 10 years in prison and up to life in prison for transportation of a minor with intent to engage in prostitution; and a minimum of 25 years and up to life in prison for kidnapping. An initial appearance on the superseding indictment has not yet been scheduled. Archibald and Went were previously ordered to be detained pending trial.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein commended FBI, Baltimore County Police Department, Maryland State Police and the Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Mark W. Crooks, who are prosecuting the case.
Turkish Man Sentenced for Smuggling Counterfeit Cancer DrugsRead the Press Release
St. Louis, MO – OZKAN SEMIZOGLU, the “Foreign Trade Director” of a Turkish drug wholesaler, was sentenced to 27 months in prison for smuggling counterfeit, misbranded and adulterated cancer treatment drugs into the United States, including multiple shipments of Altuzan® (the Turkish version of Avastin®) that he sent from Turkey to Chesterfield, Missouri.
According to Semizoglu’s plea agreement, Semizoglu used shipping labels that concealed the illegal nature of the prescription drug shipments, including customs declarations falsely describing the contents as "gifts" or "documents" or “product sample” with no or low declared monetary values. Semizoglu also ensured that large drug shipments were broken into several smaller packages to reduce the likelihood of seizures by U.S. Customs authorities and the corresponding loss of expensive drug shipments. Additionally, Semizoglu shipped some prescription cancer treatment drugs that needed constant cold temperatures to maintain their stability and effectiveness in shipping boxes without insulation or any temperature protection whatsoever. Given the length of time required to ship products from Turkey to Missouri, Semizoglu admitted he was aware that the packages would frequently arrive in the United States at temperatures outside the constant cold temperature range discussed on the drugs’ labeling.
Further, Semizoglu admitted in his plea agreement to selling Altuzan® to Richard Taylor, a United Kingdom drug wholesaler. The U.S. Food and Drug Administration’s (“FDA”) Office of Criminal Investigations (“FDA-OCI”) previously seized Altuzan® from various U.S. physicians and customers of Taylor in 2012. The FDA-OCI ultimately determined that this Altuzan® received from Taylor and Semizoglu was counterfeit, with no active drug ingredient in the drug vials. FDA issued several public safety alerts about these events. FDA-OCI’s ongoing investigation has led to a number of related prosecutions in this District, including Dr. Abid Nisar, Sandra Behe, James Newcomb, Richard Taylor, Dr. Erick Falconer, Greg Martin, Kamaldeep Sandhu and Navdeep Sandhu, as well as prosecutions in the Southern District of California and the District of Maryland.
"Today's sentencing marks a public recognition that we will continue to pursue and bring to justice those who violate the law and jeopardize public safety," said Philip J. Walsky, acting director, FDA Office of Criminal Investigations. "National borders can no longer keep out criminal activity. As we did in this case, we will work with our international partners to protect U.S. public health."
This case was investigated by FDA’s Office of Criminal Investigations, with assistance from the United States Marshal’s Service, the United States Attorney’s Office for the District of Puerto Rico, the Office of Inspector General for the U.S. Department of Health and Human Services, the Johnson County, Kansas Sheriff’s Office Criminalistics Laboratory, Europol, the Bonn prosecutor in Germany (Staatsanwaltschaft); the Federal Criminal Police of Germany (Bundeskriminalamt, BKA); the Dusseldorf Police, the German State Criminal Police (Landeskriminalamt, LKA), the U.S. Department of State’s Diplomatic Security Service, the U.S. Consulate General’s Overseas Criminal Investigations Branch in Istanbul, Turkey, and the Drug Enforcement Administration.
The case was prosecuted by the Health Care Fraud Unit of the U.S. Attorney’s Office for the Eastern District of Missouri.
Three Sentenced and Two Indicted for Tax Refund Fraud and Identity Theft SchemesRead the Press Release
Follow @NDFLNewsPENSACOLA, FLORIDA – Pamela C. Marsh, United States Attorney for the Northern District of Florida, announced today that three individuals have been sentenced to federal prison and two more have been indicted by a federal grand jury in the past months for their roles in related tax refund fraud and identity theft schemes.
Today, Rex E. Robinson, Jr., 29, of Cantonment, Florida, was sentenced by Senior U.S. District Judge Roger Vinson to 75 months in prison after having pled guilty to mail fraud and aggravated identity theft charges stemming from his participation in a scheme to defraud the Internal Revenue Service (IRS) by filing over 100 false tax returns using other people’s identities, the majority of whom were deceased. Robinson was found in possession of approximately 566 individuals’ identities, 179 of which were actually used to file the fraudulent returns attributed to the scheme. As a result of his scheme, the IRS mailed out $87,324 in fraudulently obtained tax refund checks to Robinson’s various addresses, which Robinson was ordered to pay back in restitution as part of his sentence.
Last week, Ariyanna S. Lampley (previously Schuyler J. Nickerson), 32, of Pensacola, Florida, was sentenced by Chief U.S. District Judge M. Casey Rodgers to 75 months in prison after having pled guilty to theft of government money and aggravated identity theft. Lampley forged a deceased person’s signature and deposited into her account one of the fraudulent tax refund checks obtained by Robinson, knowing that Robinson had obtained it by filing false returns. Lampley was ordered to pay back $212,792.96 in restitution to the IRS not only for the check she deposited for Robinson, but for the over 70 additional fraudulently obtained federal tax refund checks she had cashed for others since 2010.This past July, Brian Richardson, 28, of Cantonment, was sentenced by Senior U.S. District Judge Roger Vinson to 12 months and one day in prison after having pled guilty to aggravated identity theft. Richardson stole the personal identifying information of over 40 elderly hospital patients from his employer and provided it to Robinson for use in the tax fraud scheme.
In addition, on October 21, 2014, a federal grand jury indicted Richard J. Beverly II, 25, and Andrey C. Cook, 33, both of Pensacola, on mail fraud and aggravated identity theft charges in a related but separate case. The indictment alleges Beverly filed approximately 40 false tax returns to get over $85,000 in tax refunds using the identities of deceased persons and disabled patients living at a group home in Pensacola, which were stolen and provided by Cook. Both defendants have pled not guilty, and trial is currently scheduled for December 1, 2014, before Senior U.S. District Judge Lacey Collier.
These cases resulted from investigations by the Internal Revenue Service-Criminal Investigations Division, with assistance from the Federal Bureau of Investigation, the U.S. Marshals Service, the U.S. Postal Inspection Service, and the Escambia County Sheriff’s Office. The cases are being prosecuted by Assistant U.S. Attorney Alicia Kim.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
Three Plead Guilty to Federal Firearm Violations in Gulf Breeze Home Invasion CaseRead the Press Release
Follow @NDFLNewsPENSACOLA, FLORIDA - Teandre L. Altman, age 21, of Pensacola, pled guilty today to participating in a home invasion on August 27, 2014, with Robert F. Fraser, age 26, and Frank A. Rogers, age 19, who pled guilty previously. The pleas were announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The allegations leading up to the federal indictment began on August 26, 2014, when a female placed an “Craigslist” ad that said: “Looking to have fun tonight, my place or yours hmu if interested. Friendly with everything and down for anything.” An adult male subsequently contacted the female, and the two individuals communicated through text messages that evening. The male victim provided the female with his address in Gulf Breeze, Florida, and invited her to the residence. Defendant Robert Fraser, a friend of the female, agreed to travel with her to the victim’s residence during the early morning hours of August 27, 2014. Defendant Fraser contacted defendant Teandre Altman to provide transportation to the residence in Gulf Breeze. Defendants Altman and Frank Rogers picked up defendant Fraser and the female and traveled to the victim’s residence where the defendants intended to rob the victim.
Upon arrival, the defendants entered the victim’s residence, violently subdued him, and searched his residence for valuables. The defendants found an unlocked safe and stole the contents including fifteen firearms and a large quantity of ammunition, using the victim’s own suitcases to transport their loot. Once the defendants left, the victim called the police and gave a description of his assailants and their vehicle. Law enforcement officers subsequently located the vehicle and attempted to make a traffic stop, but the defendants fled through Gulf Breeze, over the Three-Mile Bridge, and into Pensacola at speeds exceeding 100 mph, throwing some firearms from the vehicle into Escambia Bay. The defendants were eventually arrested within several blocks of where they abandoned their vehicle in the East Hill area of Pensacola.
Fraser, Altman, and Rogers are scheduled for sentencing in December 2014. All three defendants pled guilty to conspiracy charges related to the possession of stolen firearms as well as substantive counts of possession of stolen firearms. Fraser and Altman also pled guilty to being convicted felons in possession of firearms. The defendants face up to ten years’ imprisonment on each of the substantive counts, and another five years’ imprisonment on the conspiracy count.
U.S. Attorney Marsh praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Santa Rosa County Sheriff’s Office, the Gulf Breeze Police Department, the Pensacola Police Department, and the State Attorney’s Office, whose joint investigation led to the indictment in the case. The case is being prosecuted by Assistant U.S. Attorney David L. Goldberg.
Three More Members of Philadelphia Based Armed Robbery Crew Indicted for Jewelry Store RobberiesRead the Press Release
Charges against three more members of a Philadelphia-based armed robbery crew were unsealed Tuesday on charges relating to two Michigan jewelry store robberies, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office, Sheriff Larry Stelma, Kent County Sheriff’s Department and Chief Michael Patton, West Bloomfield Police Department.
David Briley, 45, Shaheed Calhoun, 35, and Orlando Johnson, 40, all of Philadelphia, Pennsylvania, join Nathaniel Pembrook, 42, who was initially charged in September 2014, with charges relating to armed jewelry store robberies here in Michigan on April 22, 2014.
According to the indictment, Briley, Calhoun, Johnson, and Pembrook robbed two jewelry stores. The first robbery took place at Medawar Jewelers located on Plainfield Avenue in Grand Rapids. The second robbery took place at Tapper’s Diamonds and Fine Jewelry located on Orchard Lake in West Bloomfield. In both robberies, the robbers entered the stores during business hours with their faces covered or partially covered and brandished a firearm while ordering employees and customers to the floor. During the robbery at Medawar Jewelers, Pembrook was shot in the arm by one of the store owners. Blood recovered from the scene in Grand Rapids was DNA tested and determined to be that of Nathaniel Pembrook.United States McQuade, stated, "This case is an excellent example of the value of collaboration by federal, state and local law enforcement. We are grateful for the diligence of all of our partners in investigating this case so that these charges could be filed."
“As reflected by the indictments, FBI Detroit—along with our federal, state and local partners—remains dedicated to the pursuit and apprehension of those responsible for these acts of violence,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “The continued, multi-jurisdictional collaboration between law enforcement resulted in the indictment of David Briley, Shaheed Calhoun, and Orlando Johnson for their involvement in these violent robberies, and we will maintain our resolve as we continue to thoroughly investigate this case.”
“Investigators in this case have been relentless. It should send a powerful message to the criminals within our community that justice will prevail,” stated Kent County Sheriff Larry Stelma.
"The entire West Bloomfield community is grateful for the great law enforcement partnership that has led to the continuing federal indictments related to these very serious crimes. As the investigation continues, this partnership remains devoted to bringing everyone that played a role in these incidents to justice," said Chief Michael Patton.
All four men have been charged with Interference with Commerce by Robbery, Possession of a Firearm in Furtherance of a Crime of Violence, Conspiracy to Interfere with Commerce by Robbery and being a Felon in Possession of a Firearm. If convicted on all charges, they will all face up to life in federal prison.
All four men were arrested in Pennsylvania. Pembrook is currently detained here in Michigan awaiting trial. Johnson, Briley and Calhoun are currently awaiting removal to Detroit for his arraignment on the charges.
The case was investigated by the West Bloomfield Police Department, the Kent County Sheriff’s Department and the Oakland County Gang and Violent Crimes Task Force, which is comprised of Special Agents with the FBI Oakland County Resident Agency, and state and local law enforcement officers with the Oakland County Sheriff’s Office; the Michigan State Police and the Michigan Department of Corrections, Parole; and the Bloomfield Twp., Auburn Hills, Royal Oak , Southfield, and Waterford Twp. Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Daniel Lemisch and Chris Graveline with the United States Attorney’s Office for the Eastern District of Michigan in Detroit with the assistance of the United States Attorney’s Office for the Western District of Michigan.An indictment is only a charge and is not evidence of guilt. Every defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Dallas Roommates Indicted for Conspiring to Obstruct JusticeRead the Press Release
DALLAS — A federal grand jury has returned a six-count superseding indictment charging three Dallas residents with conspiracy to obstruct justice and related felony offenses stemming from the arrest and subsequent trial last month of one of the defendants on a federal firearm offense, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Chaddrick Darrion Ashley, 25, Daisy Emerson, 24, and Ofelia Nunez, 19, are each charged with one count of conspiracy to obstruct justice. The indictment also charges Ashley with one count of possession of a firearm by a convicted felon. Emerson is also charged with one count, and Nunez with three counts, of making a false declaration before the Court. Ashley is in federal custody and Nunez is on pretrial release. Emerson is expected to surrender to federal authorities this week.
According to the indictment, Ashley was arrested on March 26, 2014, for possession of a firearm by a felon. The indictment alleges that shortly after his arrest, Ashley conspired with Emerson and Nunez to execute a false affidavit, claiming the gun Ashley was charged with belonged to Nunez. Nunez executed a false affidavit, and testified at Ashley’s trial last month on that charge, that she was riding in the car with her boyfriend, and they picked up Ashley and another friend. Nunez exited the vehicle and discovered she left her gun in the car. Nunez also claimed she did not know Ashley. Emerson also testified at Ashley’s trial, claiming she did not participate in assisting Nunez file the false affidavit. At the time, Ashley, Emerson and Nunez were living together in an apartment in Dallas.
An indictment is an accusation by a grand jury. A defendant is presumed innocent unless found guilty beyond a reasonable doubt. If convicted, however, each defendant faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine on the conspiracy to obstruct justice charge. Each count of false statements before the Court carries a maximum statutory penalty of five years in federal prison and a $250,000 fine. The possession of a firearm by a felon offense carries a penalty of 15 years to life in federal prison and a $250,000 fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Texas Woman Allegedly Prepares Tax Returns Claiming False Deductions and CreditsRead the Press Release
A Texas federal court permanently barred Melissa Alvarez, a tax preparer in McAllen, Texas, from preparing returns for others, the Justice Department announced today. Alvarez agreed to the permanent ban, and the court entered an order imposing a permanent injunction against Alvarez on Oct. 27.
The order also requires Alvarez to turn over to the government a list of all customers for whom she prepared federal tax returns or claims for a refund for tax years 2011 through 2013, and to notify her customers for tax year 2013 of the permanent injunction against her. The order authorizes the government to monitor Alvarez’s compliance with the terms of the order.
The complaint alleged that Alvarez prepared returns that contained false, improper or inflated deductions or tax credits, such as the earned income tax credit. The complaint also alleged that these activities caused Alvarez’s customers to file returns which unlawfully understated income and tax liabilities and overstated refunds.
Return-preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2014. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of fraudulent tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Stockholm Man Sentenced to 22 Years in Prison on Child Pornography ChargesRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that
Benjamin A. Rossignol, 22, of Stockholm, Maine, was sentenced yesterday in U.S. District
Court by Chief Judge John A. Woodcock, Jr. to 22 years in prison to be followed by 20 years of
supervised release for possessing and distributing child pornography. Rossignol pleaded guilty
to the charges on May 8, 2014.Court records reveal that in October 2013 the defendant created images of child
pornography using a minor child. He sent three of those images to a covert internet investigator
with the Queensland Police Service (“QPS”) in Australia. On November 8, 2013, federal and
state agents executed a search warrant at the defendant’s residence in Stockholm. A forensic
examination of the defendant’s cell phone and his computer revealed images identical to the ones
sent to the QPS investigator and other child pornography.The investigation was conducted jointly by U.S. Immigration and Customs
Enforcement’s Homeland Security Investigations, the Maine State Police Computer Crimes Unit,
the Bangor Police Department and the Queensland Police Service.Statement by U.S. Attorney Sarah R. Saldana Concerning the November 2014 General ElectionRead the Press Release
DALLAS — U.S. Attorney Sarah R. Saldaña, of the Northern District of Texas, announced today that she has appointed four Assistant U.S. Attorneys (AUSAs) to serve as District Election Officers (DEOs) in the Dallas, Fort Worth, Abilene, Lubbock, and Amarillo, Texas, offices. These DEOs will lead the efforts of her Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 4, 2014, general elections. As DEOs, AUSAs Errin Martin, Chris Wolfe, Juanita Fielden, Steve Sucsy, and Tim Hammer are responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
U.S. Attorney Saldaña said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice is committed to protecting the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, U.S. Attorney Saldaña stated that each of the DEOs will be on duty while the polls are open, and may be contacted at the following telephone numbers:
Dallas AUSA Errin Martin 214-659-8838
Fort Worth AUSA Chris Wolfe 817-252-5221
Abilene AUSA Juanita Fielden 325-672-8160
Lubbock AUSA Steve Sucsy 806-472-7564
Amarillo AUSA Tim Hammer 806-324-2345
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The Dallas FBI office can be reached by the public at 972-559-5000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
U.S. Attorney Saldaña said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division, of the Department of Justice.”
Spartanburg Man Sentenced to 37 Months for Defrauding Banks and Car DealersRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Michael L. Wolfenbarger, age 42, of Spartanburg, South Carolina, was sentenced today in federal court in Anderson, South Carolina, for wire fraud, a violation of 18 U.S.C. ? 1343. United States District Judge Timothy M. Cain sentenced Wolfenbarger to 37 months imprisonment and ordered him to pay $1.3 million in restitution.
Evidence presented at the change of plea hearing established that Wolfenbarger acted as the middleman between various automotive dealerships and private individuals in the purchase and sale of used vehicles. Wolfenbarger utilized bank accounts at Branch Banking & Trust Company and The Palmetto Bank in his business affairs. Wolfenbarger would write checks drawn on bank accounts with insufficient funds or create counterfeit instruments and deposit these checks into other accounts. The pattern of depositing insufficient funds (“NSF”) checks and counterfeit instruments resulted in the books and records of the Banks showing inflated balances that permitted these NSF checks or counterfeit instruments to be honored rather than returned unpaid. Wolfenbarger would then withdraw monies from the Banks and/or write checks for goods and services based on inflated balances and thus take advantage of the time required for a check deposited in one bank to be physically presented for payment at the bank on which it was drawn. It was further part of the scheme and artifice to defraud that Wolfenbarger, rather than remitting funds to the automotive dealerships once a used vehicle had been sold, would deposit these funds in accounts with the Banks in an effort to perpetuate the kite and cover bad checks that he had written. Through this scheme an artifice, the victims lost approximately $1.3 million.
The case was investigated by agents of the Federal Bureau of Investigations and the Spartanburg County Sheriff’s Office. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.Southern Illinois Resident Charged with Drug ConspiracyRead the Press Release
Follow @SDILNewsOn October 27, 2014, Antuan D. Perkins, a/k/a “Little Man,” 22, of Carbondale, made his initial appearance in federal court in Benton, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. At an October 28, 2014, detention hearing, Perkins was ordered held without bond.
Perkins, who is charged by indictment with conspiracy to distribute crack cocaine and heroin, fled the area after the May 2014, indictment. On October 8, 2014, he was arrested in Chicago by members of the United States Marshals Service and the Great Lakes Regional Fugitive Task Force.
The offense occurred between 2012 and May 2014, in Williamson County. The crack cocaine and heroin offense carries a penalty of up to 20 years in federal prison, to be followed by 3 years’ supervised release, and a fine of $1,000,000. Co-defendant Ahamad R. Atkins, a/k/a “Omar” and “O” has previously pled guilty to his role in the drug conspiracy and is awaiting sentencing.
Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Southern Illinois Enforcement and Drug Enforcement Administration. The Williamson County State’s Attorney’s Office, United States Marshals Service, and Great Lakes Regional Fugitive Task Force assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Sonoma Resident Sentenced to Two Years in Prison for Filing False Tax ReturnRead the Press Release
SAN FRANCISCO – Sandra Lynn Vitorelo, AKA Sandra Mathewson, was sentenced yesterday to two years in prison and ordered to pay $91,442 in restitution for failure to report misappropriated funds on tax return, announced U.S. Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Thomas McMahon.
According to court documents, Vitorelo had her own tax return preparation and accounting business called M-V Services. In 2000, Vitorelo became the bookkeeper for her cousin. Vitorelo managed her cousin’s assets including stocks, currency, and real property. In 2006, the daughter of Vitorelo’s cousin opened a clothing store in Novato, Calif. Vitorelo subsequently began managing the finances for that store.
Vitorelo made unauthorized transfers from the bank accounts of her cousin and cousin’s daughter to her own Bank of America accounts. Vitorelo admitted to misappropriating at least $248,583 which she kept for her own use.
Vitorelo admitted that the money she misappropriated from her victims was converted to her own personal use. Vitorelo further admitted that she underreported her income on her federal income tax returns beginning in 2006 and continuing through 2009 as a result of her intentional failure to report these funds as income.
Vitorelo pleaded guilty in open court yesterday.
On Oct. 3, 2013, Vitorelo, 59, of American Canyon, was indicted on four counts of filing false tax returns. The sentence was handed down by the Honorable Thelton E. Henderson, United States District Court Judge, following a guilty plea on one count in violation of 26 U.S.C. § 7206(1). Judge Henderson also sentenced the defendant to a three-year period of supervised release. The defendant will begin serving her sentence on April 27, 2015.
Assistant US Attorney Cynthia Stier is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
(Vitorelo indictment )
Seven Middle District Men IndictedRead the Press Release
GREENSBORO, N.C. – Six Chatham County men and an Alamance County man were indicted by a federal grand jury for drug trafficking, announced Ripley Rand, Unites States Attorney for the Middle District of North Carolina. The seven people are currently in custody.
The indictment alleges that beginning in or about 2009 and continuing up to September 2014, the defendants did conspire to unlawfully distribute cocaine hydrochloride and methamphetamine. The investigation culminated on October 10, 2014 when the defendants were arrested. Six kilograms of cocaine hydrochloride and over $100.000.00 in cash were also seized at that time. The government has also begun asset forfeitures proceedings on more than ten acres of property located in Siler City.
Indicted were:
Abel Espinoza Garcia, 25, Siler City NC
Valentin Gorostieta Hernandez, 30, Siler City NC
Mauro Gorostieta Hernandez 22, Siler City NC
Kevin Ocampo, 19, Siler City NC
Antonio Ocampo, 42, Siler City NC
Constantino Alavarez Santanna, 37, Siler City NC
Craig Leevon McMasters, 42, Mebane NC
Chief Gary Tyson of the Siler City Police Department remarked, “I am very proud of my officers that work on this case. We had great collaboration between the different agencies involved. Our Town and surrounding areas are safer because of this effort. I hope the partnerships that were forged while working this case will lead to future operations that we can work together in a collaborative manner.”
Sheriff Richard Webster of Chatham County added: “The use of illegal drugs has always been an issue for law enforcement nationwide. By working together at local, state and federal levels, greater things can be accomplished to make Chatham County a safer community to live. This was certainly proven with this collaboration effort.”
The case was investigated by the Chatham County Sheriff’s Office, Randolph County Sheriff’s Office, Siler City Police Department, North Carolina State Bureau of Investigation, the United States Drug Enforcement Administration, and the Internal Revenue Service, Criminal Investigations Division.
The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until he is proven guilty beyond a reasonable doubt in a court of law.
Schanze Charged in Two-Count Misdemeanor Information with Using an Aircraft to Harass Wildlife; Pursuing A Migratory BirdRead the Press Release
SALT LAKE CITY - Dell Schanze, age 45, of American Fork, Utah, has been charged in a two-count misdemeanor information with knowingly using an aircraft to harass wildlife and pursuing a migratory bird. The charges were filed Tuesday afternoon in U.S. District Court in Salt Lake City.
Count one of the information alleges that Schanze violated the Airborne Hunting Act by using a motorized paraglider to harass an owl during an incident in February or March of 2011. Count two of the document alleges Schanze used his motorized paraglider to pursue a barn owl, which is a violation of the Migratory Bird Treaty Act.
The information also includes a notice of intent by the U.S. Attorney’s Office to seek forfeiture of the motorized paraglider or substitute property or assets.
The potential penalty for using an aircraft to harass wildlife is up to one year in jail and a fine of $100,000. The potential penalty for pursuing a migratory bird is up to six months in jail and a $5,000 fine.
Charges included in a misdemeanor information are not findings of guilt. Individuals charged in a misdemeanor information are presumed innocent unless or until proven guilty in court.
A summons will be issued to Schanze to appear in federal court.
The case is being investigated by the U.S. Fish and Wildlife Service and prosecuted by the U.S. Attorney’s Office in Salt Lake City.
Salisbury Cocaine Dealer Sentenced to over 11 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George J. Hazel sentenced David Wayne Nelson, age 32, of Salisbury, Maryland, today to 140 months in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Wicomico County Sheriff Michael A. Lewis; Salisbury Police Chief Barbara Duncan; Chief Michael Phillips of the Fruitland Police Department; and Wicomico County State’s Attorney Matthew Maciarello.
According to their plea agreements, from July 2013, through August 27, 2013, Nelson conspired with Royce Levi Brown, and others to distribute cocaine. During the investigation, DEA and the Wicomico County Narcotics Task Force initiated wire taps on cellular telephones belonging to Brown and executed search warrants at multiple locations, including residences associated with Nelson and Brown. Law enforcement overheard and observed Nelson engage in drug transactions with Brown.
For example, on July 30, 2013, law enforcement overheard conversations in which Nelson agreed to buy one kilogram of cocaine from Brown. Brown delivered the cocaine to Nelson at his residence. On August 13, 2013, law enforcement overheard Nelson arrange to purchase one half kilogram of cocaine from Brown for $21,000.
Royce Levi Brown, age 31, of Mardela Springs, Maryland, previously pleaded guilty to his role in the conspiracy and is awaiting sentencing.
United States Attorney Rod J. Rosenstein commended the DEA and the Wicomico County Narcotics Task Force comprised of the Maryland State Police, Wicomico County Sheriff’s Office, Salisbury Police Department, Fruitland Police Department and the Wicomico County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Peter J. Martinez, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Rochester Man Guilty of Trafficking in Credit Card AccountsRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Andres Ahmed Vasquez, 29, of Rochester, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to trafficking in and possession of unauthorized counterfeit access devices. Each charge carries a maximum sentence of 10 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that between June 2012 and May 2014 Vasquez trafficked in, possessed, and used stolen credit card account numbers and codes belonging to more than 250 different victims. The defendant obtained more than $210,000 as a result of his crimes.
This plea is the culmination of an investigation by Special Agents of the United States Secret Service, under the direction of Special Agent in Charge Tracy Gast.
Vasquez is scheduled to be sentenced by on January 30, 2014, at 2:00 p.m. before Judge Siragusa.- Rio Grande City Woman Convicted of Distributing Marijuana
Registered Sex Offender Arrested, Charged with Possesion of Child PornographyRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Chad Allen Mesler, 44, of Bath, NY, was arrested and charged by criminal complaint with possession of child pornography and transportation of obscene materials. The possession of child pornography charge carries a minimum sentence of 10 years in prison and a maximum of 20 years due to the defendant’s prior conviction. The transportation of obscene materials is punishable by up to 10 years in prison. The charges also carry a fine of up to $250,000.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the complaint, Probation Officers from the Western District of New York were supervising the defendant following a 2011 conviction for possession of child pornography. During a routine visit to Mesler’s residence in Bath, they found a laptop computer that contained images of child pornography. Officers also found printed obscene magazines depicting children as young as infants being raped which the defendant had buried in his back yard. The Probation Department contacted the FBI Crimes Against Children Task Force for investigative and forensic assistance.
Mesler made an initial appearance today before U.S. Magistrate Judge Marian W. Payson and was detained. His next scheduled appearance is January 8, 2015 at 9:00 a.m.
The criminal complaint is the culmination of an investigation by Special Agents of Federal Bureau of Investigation and Officers of the United States Probation Department for the Western District of New York, under the direction of Anthony SanGiacomo.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Rapid City Man Indicted for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Leslie Michael Hawk, age 24, was indicted on October 21, 2014. He appeared before U.S. Magistrate Judge Veronica Duffy on October 22, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment charges that on October 8, 2014, near Loneman, Hawk assaulted a woman with a knife.
The charges are merely accusations and Hawk is presumed innocent until and unless proven guilty.
The investigation was conducted by the Bureau of Indian Affairs Office of Justice Services, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Hawk was detained pending trial. A trial date has not been set.
Raleigh Attorney, Developers, Brokers, and Recruiters Sentenced to Prison for Expansive Mortgage Fraud SchemeRead the Press Release
RALEIGH – The United States Attorney’s Office announced that on Monday, October 27, 2014, and Tuesday, October 28, 2014, Chief United States District Judge James C. Dever, III sentenced numerous participants in an expansive mortgage fraud scheme to prison. Chief Judge Dever also collectively ordered more than $10 million in forfeiture and restitution judgments against the defendants. Those sentenced by the Court included multiple real estate developers, a closing attorney, two mortgage brokers, and a real estate broker.
“Mortgage fraud impacts the financial stability of our country’s housing markets. These individuals manipulated programs that make it possible for others to live the American dream of owning their own homes. The FBI and our law enforcement partners will expose these type of complex fraud schemes and ensure those responsible are held accountable for their crimes,” said John Strong, Special Agent in Charge of the FBI in North Carolina.
“The Federal Deposit Insurance Corporation - Office of Inspector General is committed to its partnerships with others in the law enforcement community as we address mortgage fraud cases throughout the country. The American people need to be assured that their government is working to ensure integrity in the financial services and housing industries and that those involved in criminal activities that undermine that integrity will be held accountable,” commented the Federal Deposit Insurance Corporation Inspector General Jon T. Rymer.
“We recognize the negative impact that mortgage fraud has on our economy and on our communities. With actions like those announced today, a very clear message is sent: if you don’t operate within the boundaries of the law, we will not hesitate to act. We will continue to work with our law enforcement partners to ensure the US Mail is safe and not used to further schemes like this”, said Inspector in Charge Keith Fixel, US Postal Inspection Service.
"The Federal Deposit Insurance Corporation (FDIC) Office of Inspector General is pleased to join the U.S. Attorney's Office and our law enforcement partners in announcing these sentencings. The numerous subjects involved in these fraudulent schemes are now facing the reality that those who cause harm to FDIC-insured institutions and undermine the integrity of the Nation's housing industry will be held accountable."
Nadine E. Gurley, Special Agent in Charge for the U. S. Department of Housing and Urban Development, Office of Inspector General said, “HUD's Office of Inspector General is dedicated to protecting HUD from individuals seeking to defraud the Federal Housing Administration (FHA) insurance fund. The sentences announced today is a reminder to citizens that we will continue to investigate mortgage industry professionals who attempt to defraud our programs for their own personal enrichment. This partnership between the U.S. Attorney’s Office, HUD’s Office of Inspector General and law enforcement partners, has helped demonstrate to taxpayers that those who seek to unlawfully profit by defrauding HUD programs will be vigorously prosecuted.”
“This case clearly demonstrates the commitment of IRS Criminal Investigation to aggressively pursue individuals engaged in mortgage fraud in North Carolina,” said Special Agent in Charge Thomas J. Holloman III. “Mortgage fraud destroys neighborhoods and hurts innocent families. IRS Criminal Investigation is committed to combating mortgage fraud and other financial crimes to protect the American homeowner and the national economy.”
On Monday and Tuesday, Chief United States District Judge James C. Dever sentenced eight defendants in total who were tied to the mortgage fraud scheme. Those sentenced included former mortgage broker DEXTER TIRRELL JONES, 42 of Raleigh; developer RICKY LAMONT CONGLETON, 43, of Zebulon; closing attorney PHILLIP GRAHAM ROSE, 42 of Raleigh; developer and former mortgage broker VINCENT MALDINI, 46, of Seabright, New Jersey; developer JOHNNY RAY PEELE, 43, of Wake Forest; JOSEPH CARL HOLLIS, 35, of Raleigh; developer DWAYNE THOMAS HALL, 49, of Wake Forest, and former real estate broker, TRESHELL MAYO HERNDON, 39, of Raleigh. JONES, CONGLETON, ROSE, MALDINI, PEELE, HALL, and HERNDON, were each charged in a one-count criminal information with Conspiracy to Commit Bank and Wire Fraud in violation of Title 18, United States Code, Section 1349. HOLLIS was charged with Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 371.
Summary of the Scheme
The investigation uncovered that between 2003 and 2009, CONGLETON, HERNDON, PEELE, HALL, MALDINI, JONES, HOLLIS, ROSE, and others known to the United States Attorney, were involved in a conspiracy to defraud numerous banks and lenders in the United States, collectively resulting in more than $44 million in fraudulent mortgage loan disbursements, and several million dollars in losses to victims.
The conspiracy further resulted in substantial losses to the United States Department of Housing and Urban Development (HUD) through its Federal Housing Administration (FHA) program.
The charging documents indicate that various developers in the scheme, including but not limited to CONGLETON, operating through Triple R Enterprises, LLC; HERNDON, operating through Herndon & Herndon Enterprises, LLC; HALL, operating through Dwayne T. Hall Builders; PEELE, operating through P.A.P’s Custom Home Builders, LLC and C and P Custom Homes, LLC; and MALDINI, operating through NY Construction, LLC, unlawfully profited from the sale of properties purchased or developed by the conspirators to individuals who did not have the financial means to purchase the properties, identified in the charging documents as “straw buyers”. To execute the scheme, CONGLETON, HERNDON, HALL, PEELE, MALDINI, and others involved in the scheme referred to as “Builders”, would cause entities owned or controlled by them to purchase and develop a property for quick resale. The builders caused individuals, referred to herein as “Intermediaries,” to locate individuals who were willing to allow their name and credit to be used to purchase properties from the Builders. The Intermediaries, including but not limited to HOLLIS, MALDINI and then mortgage broker, JONES, assisted the straw buyers to complete a loan application with a lender. For their services to the Builders, the conspirators paid the Intermediaries a kickback, or lump sum of cash, from the loan proceeds used by the straw buyers to purchase the properties from the Builders.
Conspirators enticed the straw buyers to participate in the scheme by making certain promises and representations including, but not limited to the following: (1) The straw buyers would be paid a sum of cash for purchasing the properties, (2)the straw buyers would not be required to make a down payment, (3) the straw buyers were told that the homes would be rented and the rental income would be used to pay the mortgage,(4) the straw buyers would not be required to make interest payments on the mortgage loans utilized to purchase the properties from the Builders.
CONGLETON, HERNDON, HALL, PEELE, MALDINI, and other Builders executed contracts to sell properties to the straw buyers for their appraised value, but set aside 15 to 20% of the sales price to use as the straw buyer’s down payment, and to pay kickbacks to the straw buyers and others participating in the scheme. The Builders further obtained and caused others to obtain cashier’s checks from accounts owned or controlled by the Builders to cover the down payment obligations of the straw buyers. The cashier’s checks were written to make it appear to lenders and banks that the straw buyers were providing the down payment funds when, in fact, such funds came from the Builders. These cashier’s checks were given to a closing attorney who handled the sale of the property from the Builder to the straw buyer.
Raleigh attorney PHILLIP GRAHAM ROSE served as the closing attorney on some, but not all, real estate transactions between Builders and straw buyers that were funded by banks and mortgage lenders in the scheme. In connection with the transactions involving the Builders and straw buyers, ROSE created and executed, and had the buyers and sellers execute, HUD-1 settlement statements that falsely indicated that the borrower brought cash to the closing when, in fact, as ROSE knew, the cash was provided by the Builders, including CONGLETON, HERNDON, HALL, PEELE, MALDINI, and others. ROSE and his staff transmitted the false HUD-1 settlement statements via mail and interstate wires to banks and mortgage lenders who relied upon them in funding the transactions. The Builders and straw buyers executed the HUD-1 settlement statements reflecting that the straw buyers were making the down payment on the properties, when in fact, the down payments were made by the Builders.
Because of the foregoing actions, banks and other lenders were deceived into disbursing loan proceeds to fund the purchase of the properties from CONGLETON, HERNDON, HALL, PEELE, MALDINI, and other Builders. The banks and lenders issued loans they either would not otherwise have made, or issued loans on terms they would not otherwise have authorized, had the Builders and others not concealed the true terms of the transactions, the actual qualifications and intentions of the straw buyers, the promises and representations made by the Builders and others to the straw buyers, and the false down payments of the straw buyers as reflected on the HUD-1 settlement statements.
Rental income was collected and sometimes not forwarded to pay the mortgage, as promised. The Builders also did not always make interest payments on loans issued to the straw buyers. As a result of the scheme, straw buyers were left accountable for loans that they did not have the financial means to repay, and banks were forced to initiate foreclosure proceedings and sell the properties at a loss.
Sentences Issued
MALDINI was a former mortgage broker who participated in the scheme as a middleman and a developer from 2005 to 2009. Law enforcement examined at least 22 transactions involving 4 straw borrowers. At sentencing on Monday, the Court ordered MALDINI to serve 60 months in federal prison, followed by 5 years of supervised release, and to make restitution to 11 lenders in the amount of $667,859.
CONGLETON was a real estate developer who participated in the scheme as a builder and a recruiter from 2004 to 2009. Law enforcement examined at least 49 transactions, spread across 20 straw borrowers and 18 lenders. Ultimately, the court ordered CONGLETON to serve 66 months in federal prison, followed by 5 years of supervised release. CONGLETON was further ordered to pay $1,123,459 to the victims of his crime, and another $3,253,142 in the form of a criminal forfeiture judgment consisting of cash and real estate tied to the offense.
JONES was a mortgage broker who participated in the scheme as a recruiter and intermediary from 2003 to 2009. Law enforcement examined at least 67 transactions involving 33 straw buyers and 24 victim lenders. Ultimately, the court ordered JONES to serve 30 months in federal prison, followed by 5 years of supervised release. The court further ordered Jones to pay restitution of $1,367,129 to the victims of his offense.
ROSE was an attorney who participated in the scheme as a closing attorney from 2002 to 2009. Following a search of his law office in 2012, law enforcement examined 98 fraudulent real estate transactions closed by ROSE for various Builders involved in the scheme. The transactions involved 46 straw borrowers and 28 lenders. The Court sentenced ROSE to 42 months in prison, followed by 5 years of supervised release. The Court also ordered ROSE to pay $1,589,298 to the victims of his offense.
PEELE was a real estate developer and recruiter for the scheme from 2007 to 2008. Law enforcement examined 14 transactions in which PEELE was a participant. Those transactions involved 3 straw borrowers, 13 victim lenders, and resulted in approximately $1.6 Million in gross, fraudulent proceeds. The Court sentenced PEELE to serve 30 months in prison, followed by 5 years of supervised release. The Court also ordered PEELE to pay $728,244 in restitution to the victims of his offense, as well as the forfeiture of certain real estate constituting fraudulent proceeds of the offense.
HALL was a real estate developer who participated in the scheme from 2004 to 2007. Law enforcement examined 38 transactions which involved 22 straw borrowers and 20 victim lenders. Ultimately, the Court ordered HALL to serve 39 months in federal prison, followed by 3 years of supervised release. The Court further ordered HALL to pay restitution to his victims in the amount of $1,214,326, and the criminal forfeiture of $7,278,558.00 dollars in cash proceeds from the offense.
HERNDON was a real estate broker and wife of a developer who participated in the offense from 2003 to 2008. Law enforcement examined 21 transactions wherein HERNDON signed false HUD-1 settlement statements on behalf of her real estate company at closing. HERNDON’s fraudulent transactions involved the use of 16 straw borrowers affected 12 victim lenders. The Court ordered HERNDON to serve 33 months in prison, followed by a 5 year term of supervised release. The Court further ordered HERNDON to pay restitution of $1,059,719 to the victims of her offense, as well as the criminal forfeiture of several million dollars in gross criminal proceeds.
HOLLIS participated in the scheme first as a straw buyer, and later as a recruiter. The Court ordered HOLLIS to serve a 5 year term of probation which included an 18 month term of house arrest. The Court further ordered HOLLIS to pay $198,500 to the victims of his offense.
Investigation of this case was conducted by the Federal Bureau of Investigation, the United States Department of Housing and Urban Development Office of the Inspector General, the Federal Deposit Insurance Corporation Office of the Inspector General, and the Internal Revenue Service Criminal Investigation. Other law enforcement partners also assisted in the investigation, including the United State Marshals Service and the Raleigh Police Department. Assistant United States Attorney William M. Gilmore represented the United States.
Racketeering Indictment Charges 3 More Tied to Unsolved Homicides, Drug Trafficking, Gun CrimesRead the Press Release
COLUMBUS – A federal grand jury has indicted three more people in connection with a series of violent crimes including 13 unsolved murders as well as other attempted murders, drug trafficking, weapons trafficking, extortion and robbery. The addition to the indictment includes an additional 23 felonies, including one murder and nine attempted murders.
Seventeen individuals were indicted in the racketeering case in July. All of the defendants are accused of being an organized criminal enterprise known as the Short North Posse. Eleven defendants could face the death penalty if convicted of the crimes in the indictment.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration (DEA), Michael Boxler, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Franklin County Prosecutor Ron O’Brien, and Columbus Police Chief Kim Jacobs announced the superseding indictment, which was unsealed today following early morning efforts to arrest and locate the defendants.
The superseding indictment alleges that beginning in 2005, members of the enterprise originally referred to themselves solely as the Short North Posse. Later some members began subsets of the Short North Posse referring to themselves as the Cut Throat Committee and later the Homicide Squad. Still within the Short North Posse, Cut Throat Committee and Homicide Squad specialized in murders and robberies of rival gang members, other drug dealers, and targets thought to have large sums of cash or firearms. The Short North Posse also identified themselves nationally with the Crips street gang.
Andre M. Brown, aka ‘Paco’, 33, of Columbus; Jonathan Holt, aka ‘Dough Boy’, 22, of Columbus and Christopher V. Wharton, 25, of Columbus were added to the indictment. Previous defendant Lance Reynolds, 31, of Columbus, was also charged with one count of racketeering conspiracy in the superseding indictment.A complete list of those charged is attached.
The superseding indictment charges one or more of the defendants with 13 unsolved homicides, 33 attempted homicides, 56 violent felonies and 73 weapons offenses. The crimes occurred in Canal Winchester, Chillicothe, Columbus, Pataskala, Pickerington, and Zanesville, between 2005 and 2012.
The superseding indictment is a result of a two-year long investigation by federal, state and local law enforcement agencies, including the FBI, DEA, ATF, Columbus Police, Franklin County Sheriff Zach Scott’s Office, and Franklin County Prosecutor Ron O’Brien’s Office. Fairfield County Prosecutor Gregg Marx, Licking County Prosecutor Kenneth Oswalt, Muskingum County Prosecutor D. Michael Haddox, Ross County Prosecutor Matthew S. Schmidt, law enforcement leaders from those counties, and officials of the Ohio Department of Rehabilitation and Correction joined U.S. Attorney Stewart in announcing the original charges.
“Thanks to the dedication of law enforcement officials in this cooperative investigation, we’re announcing charges against individuals who are allegedly responsible for 13 unsolved murders,” U.S. Attorney Stewart said. “Efforts remain ongoing, and we’re committed to solving additional homicides.”
The defendants will appear before a U.S. Magistrate Judge who will determine whether or not to hold them without bond until trial.
Stewart commended Assistant U.S. Attorneys David DeVillers and Kevin Kelley, as well as Special Assistant U.S. Attorney Jimmy Lowe with Franklin County Prosecutor O’Brien’s Office, who are prosecuting the case.
Charges contained in an indictment are allegations. All defendants should be presumed innocent until and unless proven guilty in court.
SNP
Cut Throat/Homicide SquadNo.
Name
Age
City of Residence
Counts
1
*Robert B. Ledbetter
35
Columbus, Ohio
1, 4, 9, 10, 29, 30, and 31
2
*Lance A. Green
34
Columbus, Ohio
1, 2, and 3
3
*Allen L. Wright
28
Columbus, Ohio
1, 2, and 3
4
Tysin L. Gordon
29
Columbus, Ohio
1
5
*Christopher A. Harris
27
Columbus, Ohio
1, 5, 6, 7, 8, 9, and 10
6
*Robert L. Wilson III
26
Columbus, Ohio
1, 5, 6, 9, 10, 15, and16
7
*Rashad A. Liston
25
Columbus, Ohio
1, 9, 10, 15, and 16
8
*Deounte Ussury
29
Columbus, Ohio
1, 7, 8, and 11
9
Thomas E. Coates
28
Columbus, Ohio
1
10
Ishmael Bowers
32
Columbus, Ohio
13 and 14
11
*Joseph Hill
30
Columbus, Ohio
1, 12, 13, 14, 34, and 35
12
Freddie K. Johnson
28
Columbus, Ohio
1, 32 and 33
13
*Deshawn Smith
27
Columbus, Ohio
1, 13, 14, 36 and 37
14
Lance Reynolds
31
Columbus, Ohio
1, 13, 14, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, and 38
15
*Rastaman A. Wilson
38
Columbus, Ohio
5 and 6
16
*Clifford L. Robinson
37
Columbus, Ohio
5 and 6
17
Troy A. Patterson
23
Columbus, Ohio
15 and 16
18
Andre M. Brown
33
Columbus, Ohio
1, 17, 18, 21, 22, 23, 24, 25, and 26
19
Johnathan Holt
22
Columbus, Ohio
17, 18, 19, and 20
20
Christopher V. Wharton
25
Columbus, Ohio
17, 18, 19, 20, 22, 23, 25, 27, 27, and 28
* indicates that they could face the death penalty
Count 1
Racketeering Conspiracy
18 U.S.C. § 1962(d)0-life imprisonment
$250,000 fine
$100 spec assmt
5 yrs supv relCounts 2, 3 4,5,7, 9, 11,12, 13, 15, 19, and 29
Murder in aid of racketeering
18 U.S.C. § 1959(a)(1)0-life imprisonment/death
$250,000 fine
$100 spec assmt
5 yrs supv relCounts 6,8,10, 14, 16, and 20
Murder through the use of a firearm during and in relation to a drug trafficking crime
18 U.S.C. § 924(C) and 924(j)0-life imprisonment/death
$250,000 fine
$100 spec assmt
5 yrs supv relCount 17
Attempted possession with intent to distribute cocaine
21 U.S.C. § 846
21 U.S.C. § 841(a)(1) and (b)(1)(C)0-20 years
$1,000,000 fine
$100 spec assmt
3 yrs supv relCounts 18, 23, 26, and 31
Use and discharge of a firearm during and in relation to a crime of violence
18 U.S.C. § 924(c)(1)(A)(iii)10 years - life imprisonment consecutive
$250,000 fine
$100 spec assmt
5 yrs supv relCounts 21, 24, 25, and 27
Possession with intent to distribute a detectable amount of marijuana
21 U.S.C. § 841(a)(1) and (b)(1)(D)0-5 yrs
$250,000 fine
$100 spec assmt
3 yrs supv relCount 22
Attempted possession with intent to distribute a detectable amount of marijuana
21 U.S.C. § 846
21 U.S.C. § 841(a)(1) and (b)(1)(D)0-5 yrs
$250,000 fine
$100 spec assmt
3 yrs supv relCount 28
Brandishing a firearm during and in relation to a drug trafficking crime
18 U.S.C. § 924(c)(1)(A)7 years – life consecutive
$250,000 fine
$100 spec assmt
5 yrs supv relCount 30
Conspiracy to murder a witness
18 U.S.C. § 1512(k)Life or death
$250,000 fine
$100 spec assmt
5 yrs supv relCounts 32, 33, 34, and 36
Possession of a firearm by a convicted felon
18 U.S.C. § 922(g)0-10 years
$250,000 fine
$100 spec assmt
3 yrs supv relCount 35
Possession with intent to distribute cocaine
21 U.S.C. § 841(a)(1)
21 U.S.C. § 841(b)(1)(C)0-20 years
$1,000,000 fine
$100 spec assmt
3 yrs supv relCount 37
Possession with intent to distribute heroin
21 U.S.C. § 841(a)(1)
21 U.S.C. § 841(b)(1)(C)0-20 years
$1,000,000 fine
$100 spec assmt
3 yrs supv relCount 38
Witness Tampering
18 U.S.C. § 15120-20 yrs
$250,000 fine
$100 spec assmt
3 yrs supv relPostal Employee Indicted for Theft from Evansville Mail FacilityRead the Press Release
Manager allegedly stole packages containing pain medication intended for veterans
EVANSVILLE– Josh Minkler, Acting United States Attorney, announced today federal theft charges against a postal employee who allegedly stole mail packages containing, among other things, hydrocodone, a prescription pain medication, intended for delivery to veterans who receive their Veterans Administration medication through the mail. Kevin R. Hicks, 53, of Evansville, Indiana, was charged with theft of mail matter by an employee. The indictment was the result of an investigation conducted by the United States Postal Inspection Service, the United States Postal Service Inspector General, the United States Department of Veterans Affairs, and the Evansville Police Department.
“Public corruption is one of the highest priorities of this office,” said Minkler. “Those who choose to betray the public’s trust will be held accountable and face the full force of federal law.”
In January of this year, law enforcement officials began an investigation when they determined several packages containing prescription medication from the Veteran’s Administration were not being delivered to the intended recipient. The packages routed to several zip codes in Southern Indiana and Central Kentucky never made it to their destination.
Hicks worked as a manager at the Evansville Postal Processing and Distribution Facility on Petersburg Road in Evansville. As a manager, Hicks had an opportunity to steal U.S. mail. The investigation revealed that Hicks had allegedly stolen over 23 packages containing prescription medications, including hydrocodone, a pain relief medication, for personal use.
Minkler explained the U.S. Attorney's Office established a Public Integrity Working Group in April 2012, with the stated purpose of aggressively investigating allegations of public fraud, waste and abuse by public officials in Indiana. Individuals with information on public corruption are encouraged to contact the U.S. Attorney's Office at (317) 229-2443.
According to Assistant United States Attorneys Todd Shellenbarger and Kyle Sawa, who are prosecuting this case for the government, Hicks could face up to five years in prison and a $250,000 fine if convicted. Hicks will be summoned to appear before a magistrate judge in Evansville.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Pittsburgh Man Sentenced for Smuggling Firearm from U.S.Read the Press Release
PITTSBURGH - A Pittsburgh resident has been sentenced in federal court to probation for a term of three years, with a condition of six months’ home detention on his conviction of smuggling goods from the United States, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill imposed the sentence on Tarek Mohamed Chok, 50.
According to information presented to the court, on or about Sept. 18, 2012, Chok shipped a Springfield, Model 1911, .45 caliber pistol via FedEx from Pittsburgh to Lebanon. The package containing the firearm was intercepted in Dubai. On the shipping declaration, Chok declared the contents of the package to be a “car lock, keys, and student documents.” When approached by agents of DHS about his shipment, Chok initially lied and stated that the firearm in question, which records indicate was purchased by him, was “stolen” from him. Eventually, Chok admitted that he had, in fact, sent the firearm via FedEx, that he had lied to agents about it, and he misrepresented the contents of the package because he believed that if he had listed the true contents of the package, FedEx would not have sent the package.
Assistant United States Attorney James T. Kitchen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Department of Homeland Security for the investigation leading to the successful prosecution of Chok.
Pepper Pike Man Charged with Making False Statements Related to $1 Million in LoansRead the Press Release
A criminal information was filed charging Allen D. Youngman with making false statements to a federally-insured financial institution, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Youngman, age 59, of Pepper Pike, owned Lakeside Scrap Metals, Inc., and related scrap metal companies. On behalf of Lakeside, Youngman obtained an asset-based loan that permitted borrowing against Lakeside’s accounts receivable and inventory from from First Merit Bank, a federally-insured financial institution.
Between approximately March 26, 2012, and August 14, 2012, Youngman prepared and submitted fraudulent receivables invoices, that permitted drawing up to 85 percent of the invoice totals. Youngman provided First Merit with eight fraudulent invoices that allowed him to draw approximately $1,007,347 on the loan, according to the information.
This case is being prosecuted by Assistant U.S. Attorney James V. Moroney following an investigation by the Federal Bureau of Investigation.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Owner of Accounting Business Sentenced to Two Years in Prison for Tax FraudRead the Press Release
STATESVILLE, N.C. – On Monday, October 27, 2014, U.S. District Judge Richard L. Voorhees sentenced Denise Swanson of Lenoir, N.C. to 24 months in prison for tax evasion, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Swanson was also ordered to serve three years under court supervision following her release from prison and to pay restitution in the amount of $839,830.99 to client victims and $249,912 to IRS.
U.S. Attorney Tompkins is joined by Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI) in making today’s announcement.
According to court documents and yesterday’s sentencing hearing, Swanson was the owner and operator of “Bottom-line Accounting,” a tax preparation and bookkeeping business. Filed court documents show that from 2006 to 2012, Swanson performed tax preparation services for her clients, J.W. and K.W., and their business, C.B. (“the clients”), which included making related tax payments on their behalf. According to court records, Swanson received funds from her clients that were supposed to be used to pay their various tax obligations to IRS and other state agencies. But instead of making the payments, court records show, Swanson embezzled the money and used it to pay for personal expenses including her daughter’s college tuition, renovations to her house and gambling. In total, Swanson embezzled approximately $839,830 from her clients. According to court records, Swanson failed to report the embezzled income on her own individual tax returns for tax years 2006 through 2011. Swanson pleaded guilty to tax evasion for tax year 2010 in August 2013.
Following the sentencing hearing, Swanson was permitted to remain on bond and will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by IRS-CI. Assistant United States Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Owner of Accounting Business Sentenced to Two Years in Prison for Tax FraudRead the Press Release
STATESVILLE, N.C. – On Monday, October 27, 2014, U.S. District Judge Richard L. Voorhees sentenced Denise Swanson of Lenoir, N.C. to 24 months in prison for tax evasion, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Swanson was also ordered to serve three years under court supervision following her release from prison and to pay restitution in the amount of $839,830.99 to client victims and $249,912 to IRS.
U.S. Attorney Tompkins is joined by Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI) in making today’s announcement.
According to court documents and yesterday’s sentencing hearing, Swanson was the owner and operator of “Bottom-line Accounting,” a tax preparation and bookkeeping business. Filed court documents show that from 2006 to 2012, Swanson performed tax preparation services for her clients, J.W. and K.W., and their business, C.B. (“the clients”), which included making related tax payments on their behalf. According to court records, Swanson received funds from her clients that were supposed to be used to pay their various tax obligations to IRS and other state agencies. But instead of making the payments, court records show, Swanson embezzled the money and used it to pay for personal expenses including her daughter’s college tuition, renovations to her house and gambling. In total, Swanson embezzled approximately $839,830 from her clients. According to court records, Swanson failed to report the embezzled income on her own individual tax returns for tax years 2006 through 2011. Swanson pleaded guilty to tax evasion for tax year 2010 in August 2013.
Following the sentencing hearing, Swanson was permitted to remain on bond and will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by IRS-CI. Assistant United States Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Oregon Man Pleads Guilty to Attempted Transfer of Obscene MaterialRead the Press Release
BOISE B Scott L. Austin, 52, of Portland, Oregon, pleaded guilty today to attempted transfer of obscene material to a minor, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Austin admitted that on various occasions between the summer of 2011, and October 2013, he engaged in sexually explicit chats with an undercover police officer and a person he believed was the officer’s minor child. Austin admitted that on August 9, 2011, while chatting online with the supposed minor in a chat room titled “Incest,” he sent three sexually explicit images accompanied by contemporaneous sexually explicit chats directed at the minor. The images appeared to be minor females engaging in sexually explicit conduct, although the identity and ages of the persons depicted could not be determined. In August and September of 2013, Austin emailed the detective in his undercover capacity and said he was going to be in Boise and asked to meet with him and his daughter.
Austin showed up at the predetermined location on October 11, 2013. A detective and a young female police officer waited at the location. Austin drove by several times and sent a text message, “got spooked,” and asked, “Are you a cop?” Austin requested that the two individuals kiss as he drove by so he could see them. Then, Austin stopped and had a brief conversation with the undercover detectives. He said that he was curious and that he may not have enough time tonight, and he wanted to see about meeting tomorrow.
Austin also told the male undercover officer that, “I would feel comfortable if she would just like flash me,” suggesting that the female show her breasts. Austin then said, “Maybe we should try to get together tomorrow.” The detective asked him if he had a hotel room, or where they would go and Austin said he could get a hotel room. He further stated, “I have been kind of curious; I just don’t know if I want to cross that line. So I am just nervous about it.” Austin also said he wanted to see the female clearer to determine if she was the same person he had seen in photos (the undercover detective had previously sent G-rated images of the female detective to Austin, claiming she was his “daughter”), and asked the detectives to turn their dome light on so he could see her. He then said he wanted to go, and drove away.
The charge of attempted transfer of obscene material to a minor is punishable by up to 10 years in prison, a maximum fine of $250,000.00, and up to three years of supervised release.
Sentencing is set for January 12, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by the Boise Police Department, which is a member of the Idaho Internet Crimes Against Children (ICAC) Task Force, a statewide coalition of local, state and federal law enforcement and prosecution agencies, focused on apprehending and prosecuting individuals who use the Internet to criminally exploit children. For more information about the Idaho ICAC Task Force and a list of all the participating agencies, visit www.icacidaho.org.
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.”
Omaha Woman Sentenced to 5 years in Prison for Conspiring to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that Trina Matthews, 42, of Omaha, Nebraska, was sentenced on October 27, 2014, to 5 years in prison by United States District Judge Laurie Smith Camp. Matthews had previously pled guilty for her involvement in a conspiracy to distribute methamphetamine in the Omaha area dating back to January 1, 2014. Matthews had delivered and arranged for the delivery of more than 5 grams of actual methamphetamine, which caused her to be sentenced to a mandatory minimum sentence of 5 years. After serving her sentence Matthews will be required to serve a Term of Supervised Release of 4 years.
This case was the result of an investigation by the Sarpy County Sheriff’s Office and the Omaha Police Department.
Ohio Man Convicted of Selling Heroin Near Local PlaygroundRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Jewan Kyle, 28, of Cleveland, Ohio, was convicted of distributing heroin near Bloch Playground on Wheeling Island, United States Attorney William J. Ihlenfeld, II, announced today.
Kyle, who has multiple prior felony drug convictions, pled guilty today to one count of “Distribution of Heroin Within 1000’ of a Protected Location” after an investigation by the Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative. The Task Force is comprised of the West Virginia State Police, the Ohio County Sheriff’s Department, the Wheeling Police Department, and the United States Drug Enforcement Administration.
Kyle, who will remain in custody pending sentencing, faces between one and forty years in prison and fine of up to $2,000,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
United States Attorney William Ihlenfeld, II prosecuted the case on behalf of the government.
Senior U.S. District Judge Frederick P. Stamp presided.
November 2014 ElectionsRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced today that Assistant United States Attorney (AUSA) Suntrease Williams-Maynard will lead the efforts of his Office in connection with the Justice’s Department’s nationwide Election Day Program for the upcoming November 4, 2014, general elections. AUSA Williams-Maynard has been appointed to serve as the District Election Officer (DEO) for the Southern District of Alabama, and in that capacity is responsible for overseeing the District’s handling of complaints in election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Kenyen R. Brown said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Kenyen R. Brown stated that AUSA/DEO Williams-Maynard will be on duty in this District while the polls are open. She can be reached by the public at the following telephone number: (251) 441-5845.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (251) 438-3674.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Kenyen R. Brown said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
North Carolina Businessman Sentenced to Prison for Failing to Report More Than $1 Million in IncomeRead the Press Release
A Wilmington, North Carolina, man was sentenced yesterday to serve 12 months and one day in prison for tax evasion by Chief U.S. District Judge James C. Dever III in Raleigh, North Carolina, the Justice Department and Internal Revenue Service (IRS) announced today.
Jeffrey Wayne Scott, 48, pleaded guilty on May 14 to one count of willfully attempting to evade his personal income tax for tax year 2007.
According to court documents and court proceedings, Scott has owned and operated Greenville Loop Seafood (GLS), a seafood distribution company located in Wilmington, since 1995. For tax years 2006 through 2010, Scott and his wife filed joint individual income tax returns. Scott, under penalty of perjury, reported that his taxable income for these five years ranged between $23,934 and $92,999, and paid only $91,800 in federal income taxes for this time period. However, during these five years, the Scotts spent far in excess of this reported taxable income on personal expenditures.
According to court documents and court proceedings, between 2006 and 2010, the Scotts paid for nearly all of their living expenses with checks from GLS. This included, among other things, utilities, insurance premiums, landscaping, home improvements, school fees and a country club membership. They also purchased five vehicles totaling more than $200,000, a $100,000 boat and a $2.1 million waterfront home. Scott also made a monthly transfer of $10,000 from the GLS business account into a personal brokerage account. After the purchase of their home in June 2009, Scott stopped transferring funds to the brokerage account, but instead used funds from the GLS business account to pay the mortgage and related expenses. The IRS calculated that Scott failed to report in excess of $1,270,000 in taxable income for these five years and owed at least $412,844 in additional federal income taxes.
According to court documents and court proceedings, when first contacted by IRS-Criminal Investigation agents in June 2011, Scott falsely stated that he was letting friends stay in his second home rent free. Furthermore, despite being aware that he was under criminal investigation, in November 2012, Scott filed a false 2011 GLS corporate income tax return claiming work on his personal residence, including painting and repair work by a plumber , and health bills related to his family dog as business expenses.
This case was investigated by special agents of IRS-Criminal Investigation. Assistant U.S. Attorney Susan B. Menzer for the Eastern District of North Carolina and Trial Attorney Todd A. Ellinwood of the Justice Department’s Tax Division are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New York Man Sentenced to More Than 5 Years in Federal Prison for Trafficking OxycodoneRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that HARLAND FIELDS, 28, of the Bronx, N.Y., was sentenced yesterday by Chief U.S. District Judge Janet C. Hall in New Haven to 66 months of imprisonment, followed by five years of supervised release, for trafficking oxycodone.
According to court documents and statements made in court, in 2012, the Drug Enforcement Administration’s New Haven Task Force began investigating an oxycodone trafficking operation headed by Nicholas Dyber of West Hartford. The investigation, which included the use of court-authorized wiretaps, controlled purchases of oxycodone, physical surveillance and the use of an undercover officer, revealed that Dyber was being supplied with bulk quantities of oxycodone by FIELDS and also Eduardo Garcia of Modesto, California. At times, Dyber paid Brian Vanderpool, of West Hartford, to travel to New York to pick up oxycodone from FIELDS and transport the pills to Dyber in Connecticut. Dyber distributed the pills he received from FIELDS and Garcia to customers and other Hartford-area distributors.
FIELDS has been detained since his arrest on October 11, 2013. On May 27, 2014, he pleaded guilty to one count of conspiracy to possess with intent to distribute 5,000 oxycodone pills.
Dyber, Garcia and Vanderpool have also pleaded guilty. On August 21, 2014, Garcia was sentenced to 60 months of imprisonment. Dyber and Vanderpool await sentencing.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force, which includes personnel from the DEA and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. This case is being prosecuted by Assistant U.S. Attorney Patrick Caruso.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New London Man Sentenced to 3 Years in Prison for Selling Heroin, Violating Supervised ReleaseRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut,announced that DANIEL SCOTT, 26, of New London, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 36 months of imprisonment for distributing heroin and for violating his supervised release from a previous federal conviction.
According to court documents and statements made in court, on April 19, 2010, Judge Arterton sentenced SCOTT to 60 months of imprisonment, followed by four years of supervised release, for selling crack cocaine. He was released from prison in March 2013 and began serving his term of supervised release.
Approximately seven months after his release from prison, the New London Police Department received information that SCOTT was selling marijuana and heroin from his apartment on Shaw Street in New London. In November 2013, SCOTT sold marijuana to an individual working with law enforcement and, on December 30, 2013, SCOTT sold heroin to the same individual.
On January 15, 2014, a court-authorized search of SCOTT’s apartment revealed a quantity of heroin, drug packaging material, a cell phone and approximately $661 in cash. Also, a search of SCOTT’s rental vehicle revealed 2.6 grams of heroin packaged for distribution and two additional cell phones. SCOTT was arrested on that date.
SCOTT has been detained since his arrest. On June 23, 2014, he waived his right to indictment and pleaded guilty to one count of possession with intent to distribute heroin.
This is SCOTT’s fourth felony drug conviction.
Judge Arterton sentenced SCOTT to 21 months of imprisonment for distributing heroin and 24 months of imprisonment, nine months concurrent, for violating the terms and conditions of his supervised release, for an effective sentence of 36 months of imprisonment. SCOTT was ordered to serve three years of supervised release following his release from prison.
This matter was investigated by the New London Police Department and was prosecuted by Assistant U.S. Attorney Sarah P. Karwan.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New Haven Man Charged with Federal Firearm OffenseRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury in New Haven returned an indictment today charging KAVON ROGERS, 27, of New Haven, with possession of a firearm by a convicted felon.
As alleged in the indictment and previously-filed court documents, on September 27, 2014, ROGERS was arrested by officers with the New Haven Police after he was found in possession of a stolen Smith and Wesson .380 caliber semiautomatic handgun. Prior to that date, ROGERS had sustained felony convictions.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
If convicted of the charge, ROGERS faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
ROGERS has been detained since his arrest.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorneys Jennifer Laraia and Anthony Kaplan.
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Tom Carson
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[email protected]Murphysboro Resident Charged with Crack Cocaine and Firearm OffensesRead the Press Release
Follow @SDILNewsOn October 7, 2014, Martell L. Brown-Wright, a/k/a “Low Key,” 28, of Murphysboro, was charged by indictment with distribution of crack cocaine within 1,000 feet of a public housing facility, possession of crack cocaine with intent to distribute within 1,000 feet of a public housing facility, and possession of a firearm in furtherance of a drug trafficking offense, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The indictment asserts that the offenses occurred on September 4-5, 2014, at the New Horizons Housing Complex, in Murphysboro, Jackson County.
Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The crack cocaine offenses carry a penalty of up to 40 years in federal prison, to be followed by 6 years’ supervised release, and a fine of $2,000,000. The firearm offense carries a penalty of 5 years to life in federal prison, followed by 5 years’ supervised release, and a fine of $250,000. Federal law requires that any term of imprisonment imposed on the firearm offense must be served consecutive to any term imposed on the drug offenses.
Brown-Wright made his initial appearance in federal court in Benton on October 28, 2014. He is currently being held without bond, pending an October 31, 2014, bond hearing.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office and the Murphysboro Police Department. The Jackson County State’s Attorney’s Office assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Minnesota Financial Crimes Task Force Investigation Results in Charges Against 28 for Identity Theft, Check Counterfeiting, and Bank Fraud ConspiracyRead the Press Release
United States Attorney Andrew M. Luger today announced the indictment of 25 members of a bank fraud conspiracy in which conspirators stole or attempted to steal more than $2 million by manufacturing counterfeit checks and cashing them, along with other fraudulent checks, at dozens of banks and check cashing facilities.1 Three additional defendants have been charged by information for related crimes. Federal, state, and local law enforcement officers today, under the auspices of the Minnesota Financial Crimes Task Force (MNFCTF), executed arrest warrants in Minnesota, Oregon, and North Dakota. Defendants are making initial appearances today in U.S. District Court in St. Paul before Magistrate Judge Jeffrey J. Keyes.
“The indictment of the Sienemah Gaye Organization effectively shuts down a pervasive identity theft and bank fraud conspiracy in the Twin Cities,” said U.S. Attorney Luger. “This case is representative of a recurring trend – the migration of traditional street criminals to white collar fraud. Law enforcement officials and prosecutors, working in close collaboration through the Minnesota Financial Crimes Task Force, were able to put together the pieces of hundreds of attempted instances of alleged fraud to build today’s conspiracy indictment. I am grateful to my partners in law enforcement for their superb investigative work continuing to stay ahead of those who seek to commit fraud.”
Bureau of Criminal Apprehension Assistant Superintendent Drew Evans, said: “These criminals targeted Minnesotans, local businesses and financial institutions. The Minnesota Financial Crimes Task Force together with its local and federal partners worked across jurisdictions to bring the conspiracy to light, identify the players and bring them to justice. When criminals aren't bound to one jurisdiction, this kind of criminal justice partnership puts us in the best position to stop them.”
Special Agent in Charge of the United States Secret Service in Minneapolis Louis Stephens, said: “Today's law enforcement operation involved over 75 federal, state and local law enforcement officers and is the culmination of thousands of investigative man hours involving the efforts of 12 different law enforcement agencies working collaboratively with private industry and federal prosecutors under the auspices of the Minnesota Financial Crimes Task Force. Today, thanks to talented investigators, analysts and prosecutors, a significant identity theft ring adept at victimizing Minnesota businesses and citizens is no longer in business.”
Acting Special Agent in Charge of the Internal Revenue Service – Criminal Investigation, Karl Stiften, said: "The individuals indicted today thought they could use trickery and deception for financial gain. What they didn't count on was the financial expertise of IRS Criminal Investigation special agents. IRS Criminal Investigation is proud to be a part of the powerful law enforcement team that stopped this alleged criminal activity."
According to the indictment and documents filed in court, from at least November 14, 2007, until September 11, 2013, the conspiracy, using fraudulently obtained and otherwise compromised account information, manufactured counterfeit checks with blank check stock and check-printing software, which they distributed to other members of a bank fraud conspiracy to cash at dozens of different banks and other financial institutions. The check manufacturers, including SIENEMAH TERRANCE GAYE, FINOH SAHR FILLIE, and KARZIL RENALDO CANNEDY, worked with “recruiters,” who were responsible for distributing the fraudulent checks they obtained from GAYE and FILLIE. The recruiters directed “check runners” to cash fraudulent checks at banks or check cashing establishments. In some instances, the check runners opened bank accounts in their own names in which they would deposit fraudulent checks and later withdraw for cash. Other members of the conspiracy, including GAYE, FILLIE, JEFFREY GBOR, JR., JAMES CAPEHART, III, ANTHONY KUGMEH, and BAI KIAWOIN, used stolen personally identifiable information and fraudulent checks to open new bank accounts. After opening these new accounts, the conspirators were issued blank personal checks that they used to engage in fraudulent transactions. Each member of the conspiracy took a portion of the proceeds of the fraud.
According to the indictment and documents filed in court, three primary counterfeit check manufacturers, twelve recruiters, and seven runners are charged at this time. GAYE, FILLIE, and CANNEDY used various means of obtaining account information to make counterfeit checks, including getting access to sensitive account information through two bank insiders. FELISHA HASSIM was a branch manager at a TCF Bank branch and ANNESA HASSIM was a teller at a Central Bank branch. Both FELISHA and ANNESA HASSIM facilitated the conspiracy by using their access to legitimate account information to provide the manufacturers with account numbers and balance information. A third facilitator, TIMOTHY TILLMAN, who worked as a door-to-door meat salesman, provided to the conspiracy copies of the legitimate checks he received from customers as payment, which were then used to manufacture fraudulent checks.
According to documents filed in court, in December 2012, a recruiter named JEFFREY GBOR, JR., approached FELISHA HASSIM and asked her to provide him with bank account and checking information, to which she had access through her position with the bank. HASSIM provided copies of cashed or deposited checks to GBOR on multiple occasions, and she facilitated fraudulent transactions by assisting check runners with the deposit of counterfeit checks and the immediate withdrawal of cash based on the deposit of those counterfeit checks. GBOR also communicated with HASSIM via text message to determine if specific accounts had sufficient funds for the conspiracy to engage in fraudulent transactions.
According to the indictment and documents filed in court, the defendants also obtained account numbers and bank routing information through research on the social media website Instagram. Members of the conspiracy accessed compromised account information posted by unrelated persons using the #myfirstpaycheck hashtag, among others. The conspiracy also obtained account information of legitimate business and personal accounts by stealing checks.
The Minnesota Financial Crimes Task Force (MNFCTF) protects and serves the public by investigating financial crimes related to identity theft, with a special emphasis on organized criminal enterprises. The MNFCTF is comprised of multi-jurisdictional law enforcement agencies working together to provide investigative expertise and resources. The MNFCTF includes representatives from the Minnesota Bureau of Criminal Apprehension, United States Secret Service, Edina Police Department, Internal Revenue Service - Criminal Investigations, Immigration and Customs Enforcement – Homeland Security Investigations, Ramsey County Sheriff’s Office, United States Postal Inspection Service, and the United States Attorney’s Office for the District of Minnesota.
This case is the result of an investigation conducted jointly under the auspices of the MNFCTF by the Minnesota Bureau of Criminal Apprehension, United States Secret Service, Edina Police Department, Internal Revenue Service - Criminal Investigations, United States Postal Inspection Service, Ramsey County Sherriff’s Office, St. Paul Police Department, Immigration and Customs Enforcement – Homeland Security Investigations, United States Marshal Service, Plymouth Police Department, and United States Diplomatic Security Service.
U.S. Attorney Luger thanked TCF Bank and Central Bank for their assistance in the investigation.
This case is being prosecuted by Assistant U.S. Attorney Lola Velazquez-Aguilu.
Defendant Information:
SIENEMAH TERRANCE GAYE, 30
Anoka, Minn.
Charges:
• Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 20 counts
• Aggravated Identity Theft, 2 counts
FINOH SAHR FILLIE, 28
Brooklyn Park, Minn.
Charges:
• Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 5 counts
• Aggravated Identity Theft, 1 count
KARZIL RENALDO CANNEDY, 23
Sherburne County Jail
Charges:
• Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 5 counts
JAMES LUELLYING CAPEHART, III, 31
Brooklyn Center, Minn.
Charges:
• Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 2 counts
• Aggravated Identity Theft, 1 count
JEFFREY DULWONH GBOR, 26
Minnesota Correctional Facility – St. Cloud
Charges:
• Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 11 counts
• Aggravated Identity Theft, 1 count
LARRY WLEAH BORTEH, 29
Brooklyn Park, Minn.
Charges:
• Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 1 count
ANTHONY TARPEH KUGMEH, 32
Coon Rapids, Minn.
Charges:
• Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 3 counts
• Aggravated Identity Theft, 1 count
SAMUEL GAYAH KARMO, 33
Brooklyn Park, Minn.
Charges:
• Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 1 count
SAMBA ERIC KONDEH KAMARA, 25
St. Paul, Minn.
Charges:
• Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 2 counts
FULTON KPENEON BADIO, 27
Fargo, N.D.
Charges:
• Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 3 counts
KHAN Z GBOR, 23
Columbia Heights, Minn.
Charges:
• Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 1 count
———————————————
Charges:
• Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 2 counts
PRINCE KORBOI SUMOSO, 29
Fargo, N.D.
Charges:
• Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 3 counts
BAI ALBERT KIAWOIN, 23
Brooklyn Park, Minn.
Charges:
• Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 2 counts
• Aggravated Identity Theft, 1 count
VICTOR JERRY MASSALY, 30
St. Paul, Minn.
Charges:
• Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 3 counts
FELISHA HASSIM, 20
Blaine, Minn.
Charges:
• Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 4 counts
ANNESA HASSIM, 23
Blaine, Minn.
Charges:
• Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 2 counts
TIMOTHY JASON TILLMAN, 30
Gervais, Ore.
Charges:
• Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 1 count
MALCOLM LOUIS CORNELL, 24
Minneapolis, Minn.
Charges:
• Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 1 count
KLEME DOGBO SAMOLU, 24
Waterloo, Iowa
Charges:
• Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 1 count
AYESHA VERNEDER MCKINNEY, 26
Atlanta, Ga.
Charges:
• Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 1 count
JOHNSON SAYONKON, 31
Richfield, Minn.
Charges:
• Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 1 count
MAURICE LERON GRIFFIN, 25
Minneapolis, Minn.
Charges:
• Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 1 count
KAELA MONAE LEWIS, 22
St. Paul, Minn.
Charges:
• Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 1 count
OWEN MENSOHN GBORPLAY, 25
Minnesota Correctional Facility – St. Cloud
Charges:
• Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 1 count###
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Members of Detroit Carjacking Ring SentencedRead the Press Release
Two Detroit men and a Redford Township man were sentenced yesterday after being convicted at trial in a case involving armed carjacking to support a chop shop, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Special Agent in Charge Paul M. Abbate, Federal Bureau of Investigation, Chief James Craig, Detroit Police Department, Colonel Kriste Kibbey Etue, Director, Michigan State Police and William Hayes, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
United States District Judge George Caram Steeh sentenced Frank Harper, 30, of Detroit, to 63 years in federal prison, Phillip Harper, 25, of Detroit to 92 years in federal prison and Bernard Edmond, 46, of Redford Township to 75 years in federal prison.
The evidence presented during the three week trial established that the defendants conspired with several others to steal high-end vehicles, many by committing armed carjacking, and then to retag the vehicles for sale. Edmond would purchase the stolen vehicles from the Harper brothers and others after the thefts. He would then alter the vehicle identification number of the stolen vehicles to conceal the fact that the vehicles had been stolen. Edmond would also create false documents to file with the Secretary of State, then sell the vehicles to unwitting buyers in Michigan and other states. Edmond created a market for the stolen vehicles by informing the Harpers and others of his desire to buy these stolen vehicles.
The Harper brothers committed several carjackings and other auto thefts. For example, on October 14, 2010, Phillip Harper and others brandished firearms to steal a Cadillac Escalade, a GMC Yukon, a Chyrsler Aspen, and a Mercury Milan from the Elysium Night Club in downtown Detroit. On January 25, 2011, Frank Harper and others carjacked a Mercedes S550 from a person at the intersection of Atwater and Joseph Campau streets in Detroit. On January 31, 2011, the Harper brothers and another used a firearm to carjack three vehicles from a person on Joseph Campau Street in Detroit. On February 22, 2011, the Harper brothers and others carjacked three high-end vehicles from the valet at Opus One restaurant in Detroit. On March 20, 2011, Philip Harper and others carjacked a Lexus 460 near Club Vain in Detroit. Many of these and other vehicles were intended for Bernard Edmund to retag and sell.
Co-defendants Justin Bowman was sentenced to 168 months, Stratford Newton received a sentence of 144 months and Darrell Young received a sentence of 60 months for their roles in the conspiracy.
U.S. Attorney McQuade said, "This case is an example of the kinds of cases we are bringing under our federal campaign to crack down on carjacking. Armed carjacking poses an unacceptable danger to public safety and creates a climate of fear for residents in our community. Although these convictions bring with them severe sentences, we think they are appropriate for such serious and pervasive crimes. We hope that these convictions will deter others from committing similar crimes that wreak havoc in our neighborhoods."“This case serves as an example of the collaboration between federal, state and local law enforcement to bring justice to bear upon perpetrators who, for years, victimized our neighborhoods with violence,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “The FBI, along with Homeland Security Investigations, the Michigan State Police, the Detroit Police Department, and the United States Attorney’s Office, remains dedicated to rooting out those who would prey on our society.”
The case was investigated by Special Agents of the FBI, officers of the Detroit Police Department, Michigan State Police and Homeland Security Investigations
Chief Craig stated, “Thank you to all involved who dismantled this Detroit carjacking ring. This is another opportunity for the Detroit Police Department to work with our partners to help reduce carjacking crimes, which is one of the department’s top priorities.”McLaughlin Man Indicted on Assault ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Substantial Bodily Injury to an Intimate Partner.
Reginald Brooks, age 44, was indicted on October 15, 2014. He appeared before U.S. Magistrate Judge William D. Gerdes on October 23, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about October 12, 2014, Brooks assaulted his intimate partner with a dangerous weapon, which resulted in substantial bodily injury.
The charges are merely accusations and Brooks is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Brooks was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Martinsburg Woman Convicted of Defrauding IRSRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Debra Myers, 52, of Martinsburg, West Virginia, was convicted in federal court after she admitted to her role in a tax fraud conspiracy, United States Attorney William J. Ihlenfeld, II, announced today.
Myers pled guilty today to a one-count Information alleging that she conspired to defraud the Internal Revenue Service. An investigation led by the IRS and the West Virginia State Police revealed that she signed five fraudulent tax returns at the direction of her boyfriend, a tax preparer, and allowed more than $30,000.00 in improper refunds to be deposited into her bank accounts.
Myers faces up to 10 years in prison and a fine of up to $250,000.00. As part of the plea agreement, she also agreed to pay $38,843.00 in restitution. 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 Paul Camilletti is prosecuting the case on behalf of the government.
U.S. Magistrate Judge Robert W. Trumble presided.
Manhattan U.S. Attorney Settles Civil Fraud Claims Against Columbia University and Affiliated Public Health Program for Submitting False Claims in Connection with Aids and Hiv Treatment-Related GrantsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Thomas O’Donnell, Special Agent in Charge of the New York Region of the Office of Inspector General (OIG) for the U.S. Department of Health and Human Services (HHS), announced today that the United States filed a civil fraud lawsuit in Manhattan federal court against THE TRUSTEES OF COLUMBIA UNIVERSITY IN THE CITY OF NEW YORK (“Columbia University”), and ICAP (formerly known as INTERNATIONAL CENTER FOR AIDS CARE AND TREATMENT PROGRAMS) (collectively, “Columbia”) for submitting false claims in connection with federal grants that Columbia University obtained to fund ICAP’s AIDS- and HIV-related work. The United States’ Complaint-in-Intervention (the “Complaint”) alleges that Columbia University, as the grant administrator on behalf of ICAP, received millions of dollars in federal grants and, pursuant to the rules applicable to such grants, was required for nearly 200 of ICAP’s employees located in New York City to use a suitable means of verifying that the employees had actually performed the work charged to a particular grant. The Complaint alleges that Columbia was well aware that this was not being done, yet continued wrongly to charge many federal grants for work that was not devoted to the projects they funded. The lawsuit seeks damages and penalties under the False Claims Act.
Simultaneous with the filing of the lawsuit, the United States settled the claims against Columbia pursuant to a settlement stipulation approved today by U.S. District Judge Lorna G. Schofield. In the settlement and as detailed below, Columbia admitted failing to use a suitable means of verifying whether the salary and wage charges that ICAP applied to specific federal grants were based on an employee’s actual effort for that grant. Columbia also admitted that as a result, certain effort reports contained inaccurate information, and for a number of years ICAP mischarged certain federal grants for work that was not allocable to those agreements. Columbia also agreed to pay $9,020,073 to resolve the Government’s claims.
Manhattan U.S. Attorney Preet Bharara said: “Columbia University and ICAP applied to the federal government and received many millions of dollars to fund AIDS and HIV projects around the world. We admire and applaud Columbia’s work in combatting AIDS and HIV. But grantees cannot disregard the terms under which grant money is provided. Grantees are required to use federal money for the purpose for which the grant was given and nothing else. The applicable rules are clear, and they are at the core of ensuring that tax dollars are appropriately spent. Educational institutions, like everyone else, should be held accountable when they fail to follow those rules.”
OIG HHS Special Agent in Charge Thomas O’Donnell said: “Violating rules designed to protect HIV-AIDS grant programs leads to wasteful spending, squandering vital funds that could be used to help end this worldwide epidemic. As HHS is the largest grant-making organization in the Federal government, OIG HHS is committed to protecting these grants and will work tirelessly to ensure all money is used properly.”
As set forth in the Complaint filed in Manhattan federal court:
In 2004, President Bush created the President’s Emergency Plan for AIDS Relief (“PEPFAR program”), a global HIV/AIDS program, targeting billions of dollars in new funding for prevention, treatment, and care services in the most affected countries of the world. That same year, Columbia received $125 million in PEPFAR funding through the Multi-Country Columbia Antiretroviral Program (“MCAP”) grant, and over the years obtained over 75 grants and many millions more from the federal government for HIV- and AIDs-related work performed by ICAP.
These grants are governed by certain rules that require, among other things, that grantees track the work performed by the recipient’s employees and, with limited exceptions, charge grants only for work actually performed as a part of that grant. Columbia claimed to accomplish this by producing effort reports for ICAP’s New York City-based employees purportedly detailing the employees’ distribution of work across federal, state, and private grants, as well as Columbia-sponsored projects. These reports were used to determine how much a given grant was charged for work performed by individual employees.
For nearly 200 individuals, however, these reports were not created or verified by the individuals to whom they applied. Instead, Columbia’s Finance Department provided information for these reports even though the employees of that department had limited or no knowledge of which grants the individuals actually worked on. In addition, the effort reports were certified as correct by the principal investigators on the grants without using suitable means to verify the accuracy of the reports. Instead of taking the appropriate steps to determine whether the reports were accurate, the principal investigators would certify large batches of the reports, without making any inquiry into whether the allocation of work among the grants was accurate. Moreover, ICAP’s management was well aware of the inaccuracies of the effort reporting system.
This resulted in Columbia charging grants for work that was not performed on the project being funded by that grant. For instance, an ICAP Finance Analyst stated that he spent approximately 15-20% of his time on MCAP in fiscal year 2010, but his effort report falsely listed his MCAP effort, and related salary charges, as 85%. Likewise, in fiscal year 2010, an ICAP Subcontracts Manager’s effort report listed her effort as 100% MCAP, but the Subcontracts Manager actually worked on three other grants, in addition to MCAP, that year. The time submitted for many other employees was similarly mischarged.
ICAP also charged federal grants for time spent on activities that are not chargeable to any federal grants, such as competitive grant proposal writing. For example, an ICAP Grants Manager spent a significant amount of her time writing competitive grant proposals, but her effort report showed that all of her time was charged to grants, with as much as 92% of her time charged to MCAP in some years.
Mr. Bharara thanked the Office of Inspector General for HHS for its investigative efforts and extensive assistance with the case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Rebecca C. Martin is in charge of the case.
US ex rel. v. Columbia U. and ICAP complaint-in-intervention
US ex rel. v. Columbia U. and ICAP stipulation and order
Man Sentenced in Alabama for His Role in Identity Theft SchemeRead the Press Release
A man was sentenced to serve 70 months in prison for his involvement in a stolen identity tax refund fraud (SIRF) scheme that used prisoner names and a corrupt U.S. Postal Service employee, Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama announced.
Gregory Slaton was also ordered to pay $82,971 in restitution and to three years of supervised release following his prison sentence.
According to the court documents and court proceedings, Gregory Slaton conspired with his wife, Jacqueline Slaton, his brother-in-law, Harvey James, and a U.S. Postal Service employee, Vernon Harrison, to file false tax returns using stolen identities. James and Jacqueline Slaton obtained stolen identities, including identities of inmates, and used those identities to file the false tax returns. Gregory Slaton recruited Harrison into the conspiracy, who then provided Gregory Slaton with mailing addresses on his postal route to which they could mail the fraudulently claimed prepaid debit cards. James and Jacqueline Slaton then directed the tax refunds to be issued on debit cards and checks and to be sent to the specified addresses on Harrison’s mail route.
Harrison was previously sentenced to serve 111 months in prison, James was sentenced to serve 110 months in prison and Jacqueline Slaton was sentenced to serve 70 months in prison.
The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Postal Service’s Office of the Inspector General. Trial Attorneys Jason Poole and Michael Boteler of the Tax Division are prosecuting the case with the assistance of Assistant U.S. Attorney Todd Brown for the Middle District of Alabama.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Man Pleads Guilty in Alabama for Involvement in Identity Theft SchemeRead the Press Release
A man pleaded guilty yesterday to one count of conspiracy to file false claims and one count of aggravated identity theft for his involvement in a stolen identity tax refund fraud (SIRF) scheme, Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama announced.
According to the court documents, between January 2011 and December 2013, Robert Walker and his co-conspirators filed false tax returns using stolen identities. One co-conspirator obtained stolen identities from various sources, including the identities of employees from a Columbus, Georgia, company. In order to file the false tax returns, Walker and his co-conspirators obtained several Electronic Filing Identification Numbers (EFIN) in the names of sham tax businesses. The co-conspirators applied for bank products from various financial institutions, which mailed blank check stock and prepaid debit cards. The anticipated tax refunds were directed to financial institutions, which in turn issued the refunds using checks or prepaid debit cards. Walker and his co-conspirators cashed the fraudulent checks at several businesses located in Alabama. Walker also deposited fraudulent refund checks into a bank account he controlled.
Walker’s sentencing is scheduled for Feb. 5, 2015.
The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Postal Service’s Office of the Inspector General. Trial Attorneys Michael Boteler, Charles M. Edgar Jr. and Gregory Bailey of the Tax Division are prosecuting the case with the assistance from Assistant U.S. Attorney Todd Brown for the Middle District of Alabama.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Lower Brule Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man convicted of Assault by Striking, Beating and Wounding was sentenced on October 22, 2014, by U.S. Magistrate Judge Mark A. Moreno.
Colin Colombe, age 40, was sentenced to 2 years of probation, 90 days of jail time, and a $25 special assessment to the Federal Crime Victims Fund.
Colombe was indicted by a federal grand jury on August 21, 2013. He pled guilty on August 12, 2014.
The conviction stems from an incident in Lower Brule on June 25, 2013, when Colombe got in an altercation with an adult male. As a result of the altercation, the victim suffered injuries to his leg, as well as bruises, scrapes, and abrasions to his head and body.
This case was investigated by Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Kyle Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Kyle, South Dakota, man convicted of Assault by Striking, Beating, or Wounding was sentenced on October 23, 2014, by U.S. Magistrate Judge Veronica L. Duffy.
Vinnie Makes Good, age 26, was sentenced to 12 months in custody, 1 year of supervised release, and ordered to pay a $25 special assessment to the Federal Crime Victims Fund and $352.50 in restitution.
The conviction stemmed from an incident that occurred in Kyle on November 17, 2013, when Makes Good, along with two other men, entered a man’s yard and assaulted him and his son with their fists, causing injuries.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety and the Bureau of Indian Affairs, Office of Justice Services. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Makes Good was immediately turned over to the custody of the U.S. Marshals Service.
KC Man Admits Possessing Thousands of Images of Child Porn in Guilty PleaRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to having thousands of images of child pornography on his computer.
Duane E. Elliott, 57, of Kansas City, pleaded guilty before U.S. District Judge Dean Whipple to two counts of receiving child pornography over the Internet.
According to today’s plea agreement, a detective with the Independence, Mo., Police Department identified Elliott’s computer as sharing child pornography over the Internet. Elliott used a peer-to-peer file-sharing program to make approximately 20 videos of child pornography available for distribution over the Internet on multiple occasions.
Law enforcement officers executed a search warrant at Elliott’s residence and seized multiple computers and electronic storage media, which contained thousands of images of child pornography. Investigators found more than 1,000 videos and more than 2,500 images of child pornography. Some of the videos depicted sexually explicit conduct with children under the age of 12, and some depicted children in bondage or subjected to other sadistic or violent sexual abuse.
Under federal statutes, Elliott is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the Independence, Mo., Police Department and the FBI Cyber Crimes Task Force.
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."