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12 December 2014
Ormond Beach Resident Paying Restitution to U.S. Coast Guard for Making A False Distress SignalRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Sean C. Moran (Ormond Beach) is paying restitution to the United States Coast Guard (USCG) for making a false distress signal using nautical flares in February 2014 in St. Petersburg.
On November 30, 2014, Moran made his first payment toward the $12,752.35 he must reimburse the USCG for the cost of responding to his false distress signal. As part of a pretrial diversion agreement between Moran and the U.S. Attorney's Office for the Middle District of Florida, and in cooperation with the USCG, Moran agreed to pay the restitution, write a letter of apology, complete 70 hours of community service, and attend a boating safety course. If he does not fulfill the terms of the agreement within a period of 18 months, he may be prosecuted for the offense.
Individuals who make false distress signals may be fined up to $250,000 and serve up to six years in prison.
“Shooting a flare in a non-distress situation is no different than dialing 911 and hanging up. Flares alert the Coast Guard, first responders, and other mariners of a distress situation on the water,” said Lt. Holly Deal, deputy chief of response at Coast Guard Sector St. Petersburg. “It’s a call for help. Every time a flare is fired and reported we respond, so we are asking the public to only use flares when there is an actual distress situation. This avoids unnecessary searches and ensures people in real distress get the help they need as quickly as possible.”
This case was investigated by the USCG. It is being handled by Assistant United States Attorney Sara C. Sweeney.
Ohio Man Charged with Child Exploitation CrimesRead the Press Release
Follow @NDFLNewsTALLAHASSEE, FLORIDA – On December 3, 2014, a federal grand jury returned an indictment against Isaiah Chiles of Springfield, Ohio, charging him with production of child pornography, enticing a minor to engage in unlawful sexual activity, and receipt and distribution of child pornography. Chiles was arrested in Springfield, Ohio, on December 10, 2014. The indictment and arrest was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment alleges that on or about May 1, 2014, Chiles knowingly used a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of that conduct. The indictment also alleges that on or about May 1, 2014, Chiles knowingly attempted to entice a minor to engage in unlawful sexual activity. Finally, the indictment alleges that Chiles knowingly received and distributed child pornography.
The indictment results from an investigation by the North Florida Internet Crimes Against Children Task Force with special agents from U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations’ (HSI) Tallahassee and Cincinnati offices, and officers from the Leon County Sheriff’s Office in Florida and the Clark County Sheriff’s Office in Ohio. The case will be prosecuted by Assistant United States Attorney Jason Beaton.
This prosecution is being brought as part of the Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney’s 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 exploit children via the Internet, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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. The defendant is 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 in a court of law.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. Our office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Ocean County, N.J., Woman Admits Defrauding FEMA after Major DisastersRead the Press Release
TRENTON, N.J. – A Brick, New Jersey, woman today admitted stealing benefit money from the Federal Emergency Management Agency (FEMA) after major storms in New Jersey, falsely claiming she needed the funds for housing, U.S. Attorney Paul J. Fishman announced.
Sara L. Cengiz, 47, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging her with disaster benefits fraud related to Hurricane Irene.
According to documents filed in this case and statements made in court:
On April 2, 2010, a Presidential Disaster Declaration was issued for certain areas in the State of New Jersey adversely affected by severe storms, which occurred in March 2010. Cengiz filed an application the following month with FEMA seeking federal rental assistance and assistance for personal property damage. Cengiz admitted that in her application, she falsely claimed she had to rent another residence because her residence was damaged as a result of the severe storms and was unfit for occupancy. Cengiz submitted fraudulent lease agreements and rental receipts to FEMA to prove she was paying rent, which she was not. From May 2010 to June 2011, Cengiz received $26,938 in fraudulently obtained FEMA disaster-related funds.
On Aug. 31, 2011, a Presidential Disaster Declaration for the State of New Jersey was issued as a result of Hurricane Irene. The next month, Cengiz again filed an application with FEMA seeking federal rental assistance and assistance for personal property damage as a result of Hurricane Irene. Cengiz admitted that she again falsely claimed her residence was unfit for occupancy. Cengiz again submitted fraudulent lease agreements and rental receipts to FEMA to prove she was paying rent. From November 2011 to January 2012, Cengiz received $13,039 in fraudulently obtained FEMA disaster related funds.
The charge to which Cengiz pleaded guilty carries a maximum potential penalty of 30 years in prison and a $250,000 fine. As part of her plea agreement, Cengiz will also be required to pay restitution. Sentencing is scheduled for March 27, 2015.
U.S. Attorney Fishman credited special agents of the Department of Homeland Security, Office of Inspector General, Philadelphia Field Office, under the direction of Special Agent in Charge Gregory Null, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton.
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Defense counsel: Andrea Bergman Esq., Assistant Federal Public Defender, TrentonCengiz, Sara Information
Notice of Sentencing HearingRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney’s Office announces today that there will be a sentencing hearing Monday (December 15, 2014) in United States v. Kirstie Barratt. The hearing will be held at 10:30 am on December 15, 2014, before United States District Judge Joseph F. Anderson, Jr. (courtroom # 4) at the Matthew J. Perry Federal Courthouse in Columbia, South Carolina.
Newport Man Sentenced to Five Years in Federal Prison for Distribution of Child Pornography ImagesRead the Press Release
SPOKANE – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Casey Edward Murdock, age 31, of Newport, Washington, was sentenced today after having previously pleaded guilty on September 4, 2014 to Distribution of Child Pornography Images. Chief United States District Court Judge Rosanna Malouf Peterson sentenced Murdock to a five year term of imprisonment. Murdock’s five year sentence of imprisonment is to be followed by a life term of court supervision after he is released from Federal prison. In addition, Murdock will be required to register as a sex offender.
According to court records, in November of 2011, an Federal Bureau of Investigation (FBI) agent working in an online undercover capacity on a Peer to Peer (P2P) file sharing program was sent by Murdock a password to unlock Murdock’s private P2P online directories, which were determined to contain images of child pornography. As a result of further investigation, in January of 2012, the FBI executed a federal search warrant at Murdock’s residence in Deer Park, Washington and Murdock’s laptop computer and other digital items of evidence were seized. During the execution of the search warrant, Murdock confessed to distributing child pornography images via P2P using the screen name “Boycumisgood.”
Michael C. Ormsby said, “Prosecuting offenders who are distributing child pornography is a priority of the United States Attorney’s Office in the Eastern District of Washington. This Office, together with its Federal and state law enforcement partners, is and will continue to be committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes.”
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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.
The Project Safe Childhood Initiative (“PSC”) has five major components:
- Integrated federal, state, and local efforts to investigate and prosecute child
exploitation cases, and to identify and rescue children; - Participation of PSC partners in coordinated national initiatives;
- Increased federal enforcement in child pornography and enticement cases;
- Training of federal, state, and local law enforcement agents; and
- Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by the Federal Bureau of Investigation (Los Angeles, Baltimore and Spokane Divisions). The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.CR-13-00174-RMP
- Integrated federal, state, and local efforts to investigate and prosecute child
New Orleans Men Pled Guilty to Heroin DistributionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that THOMAS HARRISON, age 34, and RODNEY MACK, age 34, both residents of New Orleans, pled guilty yesterday to conspiracy to distribute and conspiracy to possess with intent to distribute heroin. Trial for the remaining five defendants is scheduled for February 23, 2015.
HARRISON is facing a minimum of 20 years up to life imprisonment and has agreed to forfeit over $130,000 of cash/jewelry. MACK is facing a minimum of 10 years to life imprisonment. U.S. District Judge Carl Barbier set sentencing on March 19, 2015.
On July 25, 2014, HARRISON and MACK were two of 12 defendants charged in a 23-count Indictment. According to court documents, this investigation targeted a heroin trafficking organization operating in New Orleans East. This organization was responsible for distributing at least 15 kilograms of heroin in New Orleans. Agents seized approximately $1,200,00 in assets (a combination of vehicles, currency, jewelry and real property) from members of this drug trafficking organization that were acquired with proceeds made from the sale of heroin.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney J. Collin Sims is in charge of the prosecution.
Nevada Pair Pleads Guilty to Conspiring to Distribute Methamphetamine and Launder Drug ProceedsRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Kevin R. Feldis announced today that Billy Cooks, 36, aka “Red Dollaz,” pled guilty to conspiracy to distribute a controlled substance, namely methamphetamine, and conspiracy to commit money laundering. Earlier this week, Cooks’ co-conspirator, E’lala Frank, 36, also plead guilty to conspiracy to commit money laundering. A third conspirator, Dawud Johnson, previously plead guilty to related charges of attempting to possess methamphetamine and possessing a firearm during and in relation to a drug trafficking offense.
According to Assistant U.S. Attorney Kimberly Sayers-Fay, Cooks and Johnson forged a drug trafficking partnership that revolved mostly around methamphetamine. The two worked together to send methamphetamine from Las Vegas to Anchorage. Cooks enlisted Frank to send the methamphetamine through the mail to contacts Johnson had in Alaska. From December 2, 2013, through January 21, 2014, the conspirators sent three packages of methamphetamine. They were caught when attempting to send the third package.
Cooks and Frank admitted to conspiring to transmit drug trafficking proceeds through a variety of means in order to obscure and conceal the fact that the funds were from drug trafficking. The conspirators deposited and withdrew drug trafficking proceeds using at least two bank accounts.
Conspiracy to Distribute a Controlled Substance carries a sentence of imprisonment up to 40 years and a fine not to exceed $5,000,000. The money laundering conspiracy carries a maximum 20 year sentence and a $500,000 fine. Sentencing for both defendants is set for February 27, 2015. Defendant Johnson was previously sentenced to 15 years in prison.
The case was prosecuted by Assistant U.S. Attorneys Kim Sayers-Fay of the U. S. Attorney’s Office for the District of Alaska. The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and the Drug Enforcement Administration (DEA).Maryland Man Pleads Guilty to Sexually Assaulting Woman in Northwest Washington Woods-Defendant Assaulted Victim in Glover-Archbold Park -Read the Press Release
WASHINGTON – Christopher Wallace, 30, formerly of Bladensburg, Md., pled guilty today to a charge of attempted first-degree sexual abuse for attempting to sexually assault a woman in a park last spring, U.S. Attorney Ronald C. Machen Jr. announced.
Wallace entered the guilty plea in the Superior Court of the District of Columbia. The Honorable Rhonda Reid Winston is to sentence him on Feb. 27, 2015. Wallace faces a statutory maximum of 15 years of imprisonment as well as a potential fine. He also will be required to register as a sex offender for the rest of his life.
According to the government’s evidence, on April 1, 2014, at about 7:30 p.m., the victim and Wallace exited a Circulator bus near the Georgetown waterfront in Northwest Washington. Wallace, whose name was not known to the victim, directed the victim to the Capital Crescent Trail, which they walked along until entering Glover-Archbold Park. At that point, the victim confronted Wallace over going further into the woods. Wallace grabbed her by her hair and directed her further into the woods. He then sexually assaulted her.
Afterwards, the victim immediately went to a hospital and reported the assault. She described a distinctive tattoo that her assailant had on his hand, which law enforcement used along with other leads to identify Wallace. He has been in custody since his arrest.
In announcing the plea, U.S. Attorney Machen praised the work performed by those who investigated the case from the United States Park Police and Metro Transit Police Departments. He also expressed appreciation for the assistance of the Metropolitan Police Department. He acknowledged the work of those who handled the case for the U.S. Attorney’s Office, including Victim/Witness Advocate Tracey Hawkins and Paralegal Specialist Jason Manuel.
Finally, he commended the work of Assistant U.S. Attorney Jeff T. Cook, who investigated and prosecuted the matter.
14-273Man Who Defrauded Numerous Oil Companies and Oil Customers Sentenced to 27 Months in PrisonRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARC CANNON, 40, of Bridgeport, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 27 months of imprisonment, followed by three years of supervised release, for operating a scheme to defraud both oil companies and individuals whose oil deliveries he fraudulently brokered.
According to court documents and statements made in court, between approximately February 2010 and April 2011, CANNON, sometimes known as “Marc the Oil Man,” engaged in a scheme to defraud heating oil companies and to obtain money from individuals who received oil deliveries. CANNON posed as a retail customer when dealing with oil companies, and as a bargain oil seller when dealing with property owners. As part of the scheme, CANNON would make an offer to a property owner to sell oil at below market cost in exchange for a cash payment. Then he would contact a retail oil company, set up a fraudulent account using stolen personal identifying information, and place an order for the oil company to deliver home heating oil to a property owned by the property owner. The oil would be delivered to the property as ordered. CANNON would then collect cash for the delivery from the property owner, but he did not remit this payment to the oil company. When the oil company contacted the property owner to collect payment for the oil, the company would discover that the property owner had already made payment to CANNON.
CANNON was charged in a criminal complaint that was issued on April 13, 2011, and he was a fugitive until his arrest on January 30, 2014. On June 17, 2014, he pleaded guilty to one count of wire fraud.
This matter was investigated by the United States Secret Service, the Connecticut Financial Crimes Task Force, the North Haven Police Department and the North Branford Police Department. The case was prosecuted by Assistant U.S. Attorney Krishna R. Patel.
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(203) 821-3722 [email protected]Lubbock Man Faces up to 20 Years in Federal Prison for Possessing Prepubescent Child PornographyRead the Press Release
LUBBOCK, Texas — A 43-year-old Lubbock, Texas, resident appeared in federal court yesterday and pleaded guilty to one count of possession of prepubescent child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Eduardo Cantillo, who is in custody, faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. U.S. District Judge Sam R. Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report.
According to plea documents filed in the case, Cantillo used a computer at his residence to search the Internet for images and videos of child pornography. In the course of those searches, Cantillo located, downloaded and viewed numerous images and videos constituting child pornography. Cantillo also saved some of the material onto a thumb drive. Some of the images involved prepubescent minors.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Steven M. Sucsy is prosecuting.
Lorain Man Sentenced to Four Years in Prison for Identity Theft and Tax FraudRead the Press Release
A Lorain man was sentenced to four years in prison for identity theft and tax schemes in which he claimed fraudulent tax refunds of more than $121, 000, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Brent R. Willis was previously found guilty of one count of wire fraud and one count of aggravated identity theft.
Willis fraudulently obtained the identities of 57 people, without their knowledge or permission, from various sources, between January and April 2013. He then purchased approximately 57 prepaid debit cards in their names at stores in and around Lorain, according to court documents.
Willis prepared 57 false personnel income tax returns in the names of the identity theft victims, claiming false refunds in the total amount of $121,061.
“Identity theft is a contemptible modern-day scourge,” Enstrom said. “Law enforcement officers respond to it with every legal resource available. Let this sentence serve as a warning to those who are considering similar conduct.”
This case was prosecuted by Special Assistant U.S. Attorney John M. Siegel and Assistant U.S. Attorney Lauren A. Bell.
Local Doctor Charged in Superseding Indictment with Health Care FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned a 13 count superseding indictment charging Sreekrishna M. Cheruvu, M.D., 58, of East Amherst, NY, with health care fraud and submitting false statements relating to health care matters. The charges carry a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney MaryEllen Kresse, who is handling the case, stated that according to the indictment, the defendant treated patients for opioid addiction at his office in Williamsville, NY. Between January 2009 and May 2014, Cheruvu submitted false and fraudulent claims to private insurance companies seeking reimbursement for services allegedly provided. Claims submitted by the defendant included reimbursement for individual counseling sessions when patients were actually seen in a group therapy setting, and reimbursement for services Cheruvu allegedly provided while he was, in fact, out of the country. The defendant is also accused of seeking payments for office visits of family members of patients who in reality where not his patients.
According to the superseding indictment, the defendant submitted false and fraudulent claims for payment to HealthNow, Independent Health and Univera totaling approximately $800,000.
The superseding indictment is the result of an investigation on the part of Special Agents of the Federal Bureau of Investigation.
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.
Lewiston Man Pleads Guilty to Drug Conspiracy and Firearm ChargesRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Lamar
Young, 27, of Lewiston, pled guilty yesterday in U.S. District Court to conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base, also known as crack cocaine, and possession of a firearm in furtherance of a drug trafficking crime.According to court records, in late 2012 and early 2013, Young and other individuals sold crack cocaine out of an apartment in Lewiston. Young and other members of the conspiracy bought crack cocaine and cocaine powder from suppliers in Massachusetts, brought it to Maine, cooked the powder into crack cocaine, packaged it for distribution, and sold it.
In March of this year, Young was arrested in the bedroom of an apartment in Lewiston.
After his arrest, officers found a digital scale and several plastic bags containing cocaine powder and crack cocaine in a dresser drawer in the bedroom. Officers also found a Hi-Point .380 caliber pistol in the bedroom that Young kept to protect the drug operation.
Young faces a sentence of between 5 and 40 years in prison and a $5,000,000 fine on the drug conspiracy charge. He faces a sentence of no less than 5 years, to be imposed to run consecutively to his drug conspiracy sentence, and a $250,000 fine on the firearm charge. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation
Office.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and
Explosives; the Lewiston Police Department and the Maine Drug Enforcement Agency.Lawrence Physician, Author Sentenced on Tax Evasion ChargesRead the Press Release
KANSAS CITY, KAN. – A Lawrence physician and author was sentenced Thursday to 41 months in federal prison for tax evasion, U.S. Attorney Barry Grissom said. She also was ordered to pay more than $299,000 in restitution.
Mary C. Vernon, 62, Lawrence, Kan., was convicted on five counts of tax evasion. Vernon, who practiced in Lawrence and Shawnee, specialized in treating obesity. She co-authored a book based on the ideas promoted by the late Dr. Robert Atkins titled, “Atkins Diabetes Revolution.” She also provided medical services and served as medical director for a number of nursing homes. Most recently, she served in a contract position as the director of the emergency room for the Southwest Medical Center in Liberal, Kan.
During trial, prosecutors presented evidence that she earned approximately $588,686 for services she provided in 2003 and 2004 to Atkins Nutritionals, Inc., a company that sold weight loss programs and products. From 2005 to 2008 she earned an additional $190,000 to promote Dr. Atkins’ nutritional theories.
From 1999 to 2007, the Internal Revenue Service attempted to collect taxes, interest and penalties that Vernon owed and failed to pay from 1991 through 2005. The IRS collected approximately $2 million in taxes, interest and penalties through levies and seizures.
In 2003, Vernon hired an attorney to create a corporation called Rockledge Medical Services. During trial, prosecutors presented evidence that Rockledge Medical Services was a sham corporation that Vernon used to avoid paying taxes.
She evaded paying incomes taxes for 2004, 2005, 2006, 2007 and 2008.
Grissom commended the Internal Revenue Service, Matthew J. Kluge, Trial Attorney with the U.S. Department of Justice, Tax Division, and Assistant U.S. Attorney Chris Oakley for their work on the case.Last Three Defendants in Drug Trafficking and Money Laundering Case Plead GuiltyRead the Press Release
Two others pleaded guilty earlier this year
POCATELLO - California residents Reynalda Estrada-Gutierrez, 38, of Bakersfield, Porfirio Gutierrez, 37, of Los Angeles, and Araxy Suarez, 22, of Downey, pleaded guilty this week to charges involving conspiracy, drug trafficking, and money laundering, U.S. Attorney Wendy J. Olson announced. Estrada-Gutierrez pleaded guilty to conspiring to distribute and possess with the intent to distribute methamphetamine and launder drug trafficking proceeds. Gutierrez pleaded guilty to conspiring to launder drug trafficking proceeds and possessing methamphetamine with the intent to distribute it. Suarez pleaded guilty to travelling in aid of unlawful activity. The three co-defendants were charged in a superseding indictment by a federal grand jury in Pocatello on November 26, 2013.
According to court records, Estrada-Gutierrez distributed just over 900 grams of methamphetamine in the Burley, Idaho area between April and November 2013. During the same time period, she arranged to be paid for the methamphetamine through cash deposits and wire transfers into various bank accounts. Gutierrez admitted to helping Estrada-Gutierrez launder these payments and to selling methamphetamine at Estrada-Gutierrez’s direction. Additionally, Gutierrez admitted to driving from California to Idaho in early November 2013, with approximately 15 ounces of methamphetamine, intending to sell eight ounces to one individual for $8,800. Gutierrez was arrested before making that sale, and upon his arrest, law enforcement agents discovered bank cards for six different accounts and two California driver’s licenses in Gutierrez’s wallet. Suarez helped Gutierrez drive the methamphetamine from California to Idaho and was seen by law enforcement exiting Gutierrez’s rented vehicle with approximately six ounces of the methamphetamine prior to her arrest.
Co-defendants Raquel Rios, 24, and Angelina Nava, 32, both of Burley, Idaho, pleaded guilty to drug trafficking charges. Rios pleaded guilty on August 27, 2014, to distributing methamphetamine on September 30, 2013, and Nava pleaded guilty on October 29, 2014, to possessing with intent to deliver methamphetamine on November 6, 2013.
Estrada-Gutierrez faces a possible prison sentence of 10 years to life, a maximum fine of $10,500,000, and up to a life term of supervised release. Similarly, Gutierrez faces a possible prison sentence of five to 60 years, up to a life term of supervised release, and a maximum fine of $5,500,000. Nava faces a possible prison sentence of up to 20 years, a maximum fine of $1,000,000, and up to a life term of supervised release. For travelling in aid of unlawful activity, Suarez may be sentenced to up to five years in prison, a $250,000 fine, and three years of supervised release.
Rios was sentenced to 27 months in federal prison on November 7, 2014. Sentencing is set for Estrada-Gutierrez, Gutierrez on March 10, 2015, and for Suarez on March 11, 2015, and for Nava on January 13, 2015, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Minidoka and Cassia County Sheriffs’ Offices and Idaho State Police, with assistance from U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations, the Drug Enforcement Administration, the U.S. Department of Treasury, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
LaVernia Restaurant Operator Pleads Guilty to Immigration Document Fraud SchemeRead the Press Release
In San Antonio today, 49–year-old Yolanda Hernandez de Arteaga, the former operator of the Los Compadres Restaurant in LaVernia, TX, pleaded guilty to federal charges in connection with the execution of a fraud scheme for financial benefit which targeted individuals seeking legitimate immigration documents announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before Chief U.S. District Court Judge Fred Biery this morning, Arteaga pleaded guilty to one count of conspiracy to commit wire fraud and five substantive counts of wire fraud.
By pleading guilty, Arteaga admitted that from October 2010 through December 2012, she and her co-defendant, 56–year-old Maria de Lourdes Montano-Vicencio, an undocumented alien living in Houston, initiated a series of financial fraud schemes including numerous incidents of wire fraud whereby they would induce vulnerable immigrants in the LaVernia area into giving them money in exchange for securing legal immigration status documents. In the schemes, the defendants claimed to have personal contacts with immigration authorities who could provide each victim with items such as a social security card, a resident alien car and a work permit in about six months-time. It was part of the scheme that the defendants did not provide any documents to the undocumented aliens. During the time of the conspiracy, the defendants collected over $100,000 from more than 60 immigrants desperate for legal immigration status documents. When the victim-immigrants became angry because they never received any documents or refunds, the defendants threatened to notify immigration authorities and facilitate the deportation of the immigrants if the victims made trouble. During the scheme, Arteaga wired proceeds from the scheme from LaVernia to Montano-Vicencio in Houston via Western Union or MoneyGram.
Arteaga, who is on a $25,000 bond and confined to her residence pending sentencing, faces up to 20 years in federal prison. The federal government is also seeking a $150,000 monetary judgment against the defendants representing the proceeds derived from their alleged scheme.
Montano-Vicencio, who is in federal custody, is currently awaiting sentencing after pleading guilty to four counts of wire fraud in February of last year. Arteaga and Montano-Vicencio are scheduled to be sentenced on March 6, 2015.
This case resulted from an investigation conducted by the agents with the Federal Bureau of Investigation with assistance from Homeland Security Investigations (HSI), U.S. Border Patrol and the LaVernia Police Department. Assistant United States Attorney Bettina Richardson is prosecuting this case on behalf of the Government.
Kenneth Huidong Kang Sentenced in U.S. District Court for Harboring Illegal AliensRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that Defendant KENNETH HUIDONG KANG, age 39, was sentenced on December 11, 2014, by Chief Judge Frances Tydingco-Gatewood, in the District Court of Guam for Harboring Illegal Aliens and Criminal Conspiracy. Defendant KANG was sentenced to six months imprisonment and two years supervised release, to include six months home detention under the location monitoring program. Defendant KANG was also ordered to pay a $3,000 fine.
During the period from or about January 2006 and lasting until December 2008, Defendant KANG worked at Club Musha, later renamed to Club Music. KANG worked at the establishment as a manager where he conspired with others to conceal Korean women who had entered Guam as tourists under the Guam Visa Waiver Program. The Guam Visa Waiver Program allowed Korean citizens to enter Guam as tourists for a limited time of 15 days. The real purpose for these Korean women to enter Guam was for them to work at Club Music. Defendant KANG further allowed some of these Korean women to reside at his Yigo residence while they illegally worked at Club Music and he did so for the purpose of commercial advantage and private financial gain.
This case was investigated by Special Agents of the Department of Homeland Security/Homeland Security Investigations, and prosecuted by former Assistant U.S. Attorney Karon V. Johnson and Assistant U.S. Attorney Stephen F. Leon Guerrero.
Judge Sentences Altoona Teen to 2 Years in Prison for Making Destructive DevicesRead the Press Release
JOHNSTOWN - A resident of Altoona, PA, has been sentenced in federal court to 24 months incarceration followed by three years supervised release on his conviction of violating federal laws, United States Attorney David J. Hickton announced today.
United States District Judge Kim. R. Gibson imposed the sentence on Vladislav Miftakhov, age 19, as the sole defendant.
According to information presented to the court, on or about January 24, 2014, the defendant knowingly and unlawfully and without registering and obtaining approval, made firearms/destructive devices and possessed firearms/destructive devices which were not registered to him in the National Firearms Registration and Transfer Record.
Assistant United States Attorney James T. Kitchen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Miftakhov.
- Joint Investigation Leads to Multiple Arrests in Huntsville and Surrounding Areas
Johnstown Woman Sentenced to 18 Months in Prison for Drug OffensesRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been sentenced in federal court to 18 months of incarceration to be followed by three years of supervised release and ordered to forfeit $690, on her conviction of violating various federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Rukiya R. Smith, 35.
According to information presented to the court, Smith distributed less than 28 grams of cocaine base, commonly known as "crack," and less than 100 grams of heroin on March 5, 2013, and she possessed less than 100 grams of heroin on April 24, 2013, with the intent to distribute it.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation leading to the successful prosecution of Smith.
Jerseyville Man to Serve 25 Years in Prison for Attempted Sex Offenses with A MinorRead the Press Release
Follow @SDILNewsTimothy S. Griesemer, 40, of Jerseyville, Illinois was sentenced today in the U.S. District Court to 25 years in prison for Attempted Sex Trafficking of a Minor and Attempted Enticement of a Minor, United States Attorney Stephen R. Wigginton announced. Griesemer was also ordered to pay a $1200 fine and a $200 special assessment. When he is released from prison, he will be on federal supervised release for the remainder of his life. Griesemer was convicted of both counts on October 10, 2014 after a three-day jury trial.
Evidence presented at trial established that in October 2013, Griesemer sent several text messages to a female acquaintance indicating that he had a desire to obtain a minor child for the purposes of engaging in sexual acts with the child. The acquaintance called the Jerseyville Police Department to report the substance of the text messages. Jerseyville Police Department enlisted the assistance of agents from the Illinois State Police and the United States Secret Service who initiated an investigation. On October 10, 2013, Griesemer exchanged over 95 text messages with undercover agents during which Griesemer repeatedly stated his desire to pay money to engage in sexual acts with an eight (8) year old female.
During the text conversation, Griesemer agreed to meet at an apartment in Jerseyville for what he believed would be a meeting with the young child to engage in sexual acts. Griesemer arrived at the apartment, confirmed his intentions, and was arrested by law enforcement. During a search of Griesemer upon arrest, agents located a condom, two bottles of personal lubricant, a sexual device, and $311 in Griesemer’s pockets.
In pronouncing the sentence, the United States District Judge commented on the serious and heinous nature of the offense and the need to protect the public from future crimes of Griesemer, stating that Griesemer is a “sexual parasite, the treatment for which is a lengthy prison sentence.”
“I am grateful that a member of the public reported to law enforcement Griesemer’s text messages which revealed a plan to find a child to sexually violate. But for the actions of a conscientious citizen and dedicated law enforcement officers who immediately investigated the tip, this defendant would have been free to prey on innocent children,” United States Attorney Wigginton said.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The investigation was conducted by the Illinois State Police, the United States Secret Service, and the Jerseyville Police Department. The case was prosecuted by Assistant United States Attorney Ali Summers.
Indictment Unsealed Charging Conspiracy to Violate Federal Controlled Substances Act and Federal Gun Control ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DARRELL LEWIS, age 29, STERLING PIPKINS, age 30, KEVIN WALKER, age 22, CARL LEWIS, age 21, DARRYL LEWIS, age 60, DEMONIDE ROWLEY, age 37, NERIMANE BONCHAMA, age 21, TANESHEN GRANDBERRY, age 38, MICHAEL MCQUITTY, age 40, all of New Orleans, were charged in a thirteen-count indictment for violations of the Federal Controlled Substances Act and the Federal Gun Control Act.
Count 1 charges all defendants with conspiracy to distribute and to possess with the intent to distribute one kilogram or more of heroin. As to that count, all of the defendants face a term of imprisonment of at least ten years in prison and a maximum of life imprisonment, a fine of up to $10,000,000, and a minimum of five years of supervised release following any term of imprisonment.
Count 2 charges defendants DARRELL LEWIS, PIPKINS, WALKER, CARL LEWIS, DARRYL LEWIS, BOUCHAMA, GRANDBERRY, and MCQUITTY with conspiracy to possess firearms in furtherance of a drug trafficking crime. The offense carries a maximum penalty of twenty years, a fine of $250,000, and three years of supervised release.
The indictment also charges DARRELL LEWIS, PIPKINS, and CARL LEWIS with distribution of heroin. The offense carries a maximum penalty of twenty years of imprisonment, a fine of up to $1,000,000, and three years of supervised release.
DARRELL LEWIS, PIPKINS, WALKER, CARL LEWIS, DARRYL LEWIS, BOUCHAMA, and MCQUITTY are also charged with use of a communications facility in furtherance of a drug trafficking crime. The maximum penalties those defendants may receive as to each count is four years in prison, a $250,000 fine, and not more than one year of supervised release.
The indictment lastly charges DARRYL LEWIS with possession of firearms, including AR-15 rifles, in furtherance of a drug trafficking crime. For this offense, he faces a mandatory minimum sentence of at least five years in prison to be served consecutively with any other sentence.
U.S. Attorney Polite reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigations Violent Gang Task Force (NOGTF), which includes the Drug Enforcement Administration, Homeland Security, the New Orleans Polite Department, Jefferson Parish Sheriff’s Office and the St. Tammany Parish Sheriff’s Office.
Assistant U.S. Attorneys Matthew Payne and Elizabeth Privitera are in charge of the prosecution.
Henderson County Man Guilty of Federal Income Tax ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – Joseph A. Masso, a 64-year-old resident of Athens, Texas, pleaded guilty to federal income tax violations, announced U.S. Attorney John M. Bales today.
Masso was charged with making and subscribing to a false tax return for the calendar year 2011 in violation of 26 U.S.C. ' 7206(1). According to information presented in Court, Masso formed a Texas limited liability company known as Lone Star Western & Casual LLC in December 2007. Lone Store operated retail clothing stores in Athens, Corsicana, and Waxahachie, Texas. For tax years 2009-2011, Masso falsely understated the gross receipts for these businesses on his IRS Form 1040 Schedule C by more than $5 million. As a result, he falsely understated his tax liability for the three tax years by approximately $950,000.
At sentencing, Masso faces imprisonment for up to three years. Masso has already agreed to pay restitution in excess of $900,000 to the IRS as well as a civil fraud penalty of more than $450,000.
In a related civil action, Masso agreed to forfeit $800,000 to the United States. The funds were originally seized during the execution of federal seizure warrants.
This case was investigated by the Internal Revenue Service-Criminal Investigation and was prosecuted by Assistant United States Attorney Frank Coan.
Harvard-Trained Mutual Fund Manager Charged with Securities FraudRead the Press Release
BOSTON – A Boston-area mutual fund manager was arrested last night on securities fraud charges in connection with an alleged scheme to use the fund’s money to issue fictitious loans.
Daniel Thibeault, 40, of Framingham, was charged in a criminal complaint with a single count of securities fraud. Thibeault was held overnight and had an initial appearance today before U.S. Magistrate Judge M. Page Kelley.
As set forth in the complaint, Thibeault is the founder and principal owner of Graduate Leverage, LLC, an asset management and financial advisory firm he founded while a student at Harvard Business School, from which he graduated in 2004. Thibeault is also the co-portfolio manager of the GL Beyond Income Fund, a mutual fund launched in March 2012 that purports to invest in consumer loans to individuals “it believes are less susceptible to economic downturns, such as medical doctors, dentists, veterinarians, attorneys and business owners.” As of Jan.31, 2014, the Fund reported net assets of approximately $31 million – a number that the complaint alleges has increased since that time.
The complaint alleges that, although the Fund is marketed as consisting of a diversified pool of hundreds of consumer loans to young professionals, Thibeault caused the Fund to issue, or acquire, a number of fictitious loans to individuals who never requested and did not, in fact, receive such loans. Thibeault allegedly falsified or caused to be falsified the documentation related to those loans.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $5 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The United States Attorney’s Office received valuable assistance from the Securities & Exchange Commission in the course of investigating this case. The case is being prosecuted by Stephen E. Frank, Deputy Chief of Ortiz’s Economic Crimes Unit.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Hamden Man Sentenced to 77 Months in Federal Prison for Distributing Crack CocaineRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CLAYTON CARNEY, also known as “Hardcore,” 38, of Hamden, was sentenced today by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 77 months of imprisonment, followed by four years of supervised release, for his role in a narcotics distribution ring.
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI New Haven Safe Streets Task Force and the New Haven Police Department into drug distribution and related violence allegedly being committed by members and associates of the Grape Street Crips in New Haven. The investigation revealed that CARNEY conspired with Donald Ogman, who has been identified in court proceedings as the leader of the Grape Street Crips, to purchase quantities of cocaine from their respective dealers, convert the cocaine to crack and then sell the crack to customers and other street-level distributors.
CARNEY’s criminal history includes several state felony drug convictions.
CARNEY has been detained since his arrest on April 11, 2012. On March 24, 2014, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of cocaine base (“crack cocaine”).
A total of 18 individuals were charged as a result of this investigation, and all have pleaded guilty. Ogman and several other defendants await sentencing.
This matter is being investigated by the FBI’s New Haven Safe Streets Task Force, which includes the New Haven, Hamden and Milford Police Departments, the Connecticut State Police and the State of Connecticut Department of Correction. The investigation has been assisted by the U.S. Marshals Service and the Westerly (R.I.) Police Department.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and H. Gordon Hall.
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(203) 821-3722 [email protected]Grand Jury Charges FnD Gang Members with Racketeering ConspiracyRead the Press Release
U.S. Attorney Kenneth Allen Polite, Jr., announces the return of a third superseding indictment charging members of the Frenchmen/Derbigny gang, or “FnD,” with violating federal drug and firearm laws. A federal grand jury returned the indictment on December 11, 2014, against TRAVIS SCOTT, a/k/a “Trap” or “Slim,” age 30, STANLEY SCOTT, a/k/a “Stizzle,” age 22, SHAWN SCOTT, a/k/a “Shizzle,” age 25, AKEIN SCOTT, a/k/a “Keemy,” age 21, JEREMIAH JACKSON, a/k/a “Rocky,” age 24, and BRIAN BENSON, a/k/a “Dub” or “Dubba,” age 30.
The third superseding indictment alleges that all six defendants engaged in a conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act (RICO). According to the indictment, the defendants, as members of Frenchmen/Derbigny, or “FnD,” conspired to commit racketeering acts including murder, distribution of controlled substances, robbery, tampering with witnesses, and interstate travel in aid of racketeering. The indictment alleges that FnD members sold drugs from a convenience store located in the Seventh Ward of New Orleans, and that FnD members benefitted from food stamp fraud that was facilitated by store employees. The indictment also alleges the attempted murder of twenty individuals in the Mother’s Day second-line parade as an overt act committed in furtherance of the RICO conspiracy. If convicted of the RICO conspiracy set forth in the indictment, all six defendants face a maximum of life imprisonment.
The indictment also includes six counts of violent crimes in aid of racketeering against TRAVIS SCOTT, STANLEY SCOTT, SHAWN SCOTT, AKEIN SCOTT, and JEREMIAH JACKSON. Among these charges is a count charging JEREMIAH JACKSON with a shooting that occurred on April 16, 2011, on the 2000 block of North Prieur Street. Each count carries a maximum sentence of 20 years in prison.
TRAVIS SCOTT is also charged with two counts of witness tampering and two counts of interstate travel in aid of racketeering. If convicted of witness tampering, TRAVIS SCOTT faces a maximum of 20 years in prison as to each count. If convicted of interstate travel in aid of racketeering, he faces a maximum 5 years in prison as to each count.
All defendants are presently in custody pending trial.
The indictment is a product of an ongoing investigation into the violent acts in furtherance of the drug trafficking by the FnD gang. It represents the continued coordinated effort of the federal and state law enforcement authorities within the Multi-Agency Gang (“MAG”), including the United States Attorney’s Office, the Orleans Parish District Attorney’s Office, Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and officers of the New Orleans Police Department.
U. S. Attorney Polite reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The prosecution is being handled by Assistant United States Attorney Matthew Payne and Special Assistant United States Attorney Brian Ebarb, who is assigned from the Orleans Parish District Attorney’s Office.
Four Receive Federal Prison Terms for Role in Firearms Trafficking SchemeRead the Press Release
In San Antonio this morning, four individuals received federal prison terms for their roles in a San Antonio-based firearms trafficking scheme announced U.S. Attorney Robert Pitman, Homeland Security Investigations (HSI) Special Agent in Charge Janice Ayala and Special Agent in Charge Robert Elder, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Houston Division.
Chief U.S District Judge Fred Biery sentenced 40–year-old ringleader Roberto Loera and his brother, 31–year-old Manuel Loera-Cazares each to ten years in federal prison. Judge Biery also sentenced 35–year-old Jose Fedencio Mendez Cadena of San Antonio and 42–year-old Jose Driscoll to four years in federal prison. In addition, Judge Biery sentenced a fifth defendant, 25–year-old Daniel DeLeon, to five years probation.
On October 17, 2014, co-defendants Santos Ligues, III, age 36, and Juan Jose Flores were sentenced to 20 months in federal prison and five years probation, respectively. An eighth defendant, 30-year-old Agustin Aguilar-Torres failed to appear for today’s sentencing. An arrest warrant has been issued for Aguilar-Torres.
All of the defendants entered guilty pleas to various firearms trafficking charges earlier this year. According to court records, from February 2012 until April 2012, the defendants were involved in a firearms trafficking scheme in the Western and Southern Districts of Texas. The scheme involved the purchasing of assault weapons from federal firearms licensees (FFLs) in San Antonio, then obliterating their serial numbers. The defendants would subsequently dismantle the firearms and conceal them inside the I-beams of a pick-up truck in an attempt to smuggle them into Mexico. On April 24, 2012, Frio County Sheriff’s deputies conducted a traffic stop on the truck being driven by Driscoll and seized $50,000 in U.S. Currency as well as five AR-15 assault rifles.
This investigation was conducted by HSI and ATF together with assistance from the Frio County Sheriff’s Office.- Four More Enter Pleas in Sex Trafficking, Harboring and Money Laundering Investigation
Former St. Bernard Deputy Sheriff and Former Saints Player Indicted for Drug Distribution and Obstruction ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite, announced that BRANDON LICCIARDI, age 29 of Meraux, Louisiana, and DARREN SHARPER, age 39, formerly of New Orleans, were charged today in a six-count Indictment. LICCIARDI and SHARPER were charged with Conspiracy to Distribute Alprazolam, Diazepam and Zolpidem with intent to commit rape and two counts of distributing these substances with intent to commit rape. LICCIARDI was also charged with two counts of Witness Tampering and one count of Impeding an Investigation. The maximum punishments for these offenses are as follows:
COUNT
CHARGE
DEFENDANT
MAXIMUM PENALTIES
1
18 U.S.C. 1512(b)(1); Tampering with a Witness
Brandon Licciardi
20 Years, $250,000 Fine, 3 Years Supervised Release.
2
18 U.S.C. 1512(b)(1); Tampering with a Witness
Brandon Licciardi
20 Years, $250,000 Fine, 3 Years Supervised Release.
3
18 U.S.C. 1512(c)(2); Impeding an Investigation
Brandon Licciardi
20 Years, $250,000 Fine, 3 Years Supervised Release.
4
21 U.S.C. 846; Conspiracy to Distribute a Schedule IV Controlled Substance;
Brandon Licciardi
Darren Sharper
20 Years, $250,000 Fine, 3 Years Supervised Release.
5
21 U.S.C. 841(a)(1),(b)(1)(D) & (E)(7)(A); Distribution of a Controlled Substance, Schedule IV
Brandon Licciardi
Darren Sharper
20 Years, $250,000 Fine, 3 Years Supervised Release.
6
21 U.S.C. 841(a)(1),(b)(1)(D) & (E)(7)(A); Distribution of a Controlled Substance, Schedule IV
Brandon Licciardi
Darren Sharper
20 Years, $250,000 Fine, 3 Years Supervised Release.
LICCIARDI is a former Deputy Sheriff with the St. Bernard Sheriff’s Office. He resigned from that position prior to his arrest today. SHARPER is a former member of the New Orleans Saints and is presently in custody in Los Angeles for State of California charges.
“Today's indictment reflects our office priorities of fighting violence and public corruption,” state U.S. Attorney Polite. “As alleged, Sharper and Licciardi conspired to distributed narcotics to several women with the intent to commit rape. Licciardi further compromised his position as a law enforcement officer by encouraging a witness to lie about Licciardi's involvement in this conspiracy. As a result of today’s federal and state charges, both Licciardi and Sharper will now be brought to justice in this district.”
U. S. Attorney Polite reiterated that, at this time, the charges in the Indictment are merely charges, and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter and thanked the Orleans Parish District Attorney’s Office for their assistance. Assistant United States Attorneys Mark A. Miller and Michael E. McMahon are in charge of the prosecution.
Former Murray County Judge Found Guilty by Federal JuryRead the Press Release
ROME, Ga. – Former Murray County Chief Magistrate Judge Bryant L. Cochran has been found guilty by a federal jury for arranging the false arrest of a woman who alleged that she had been sexually propositioned by Cochran, for tampering with a witness, and for sexually assaulting a county employee.
“Cochran abused the trust placed in him by the people of Murray County,” said United States Attorney Sally Quillian Yates. “Cochran used the power and influence of his judicial position in a way that is the fundamental opposite of justice, arranging to have a citizen falsely arrested after she accused him of sexual misconduct. There is no greater breakdown in the justice system than when a judge uses his authority to wrongly seek to deprive a citizen of her liberty.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI continues to commit significant resources toward investigating allegations of criminal conduct by public officials. This conviction of former Magistrate Judge Cochran in federal court illustrates our commitment in following the facts in these otherwise sensitive investigations.”
“The GBI is committed to working with our federal partners to hold accountable those whom the public trust to uphold the law. When someone in a position of authority victimizes citizens, law enforcement must be prepared to fully investigate these abuses of power,” said Vernon Keenan, Director, the Georgia Bureau of Investigation.
According to United States Attorney Yates, the charges, and other information presented in court: From January 1, 2004, to August 15, 2012, Bryant Cochran served as the Chief Magistrate Judge in Murray County, Ga. In that position, Cochran sexually assaulted a Murray County employee and unlawfully searched the personal cellular telephone of another Murray County employee.
In addition, on April 9, 2012, Cochran met with a female citizen regarding a legal matter. During the meeting, Cochran made inappropriate sexual advances towards the citizen. By mid-July 2012, the allegations of Cochran’s sexual misconduct towards the citizen had become public. In response, Cochran called several local police officers providing them with a “tip” – that the citizen carried drugs in her vehicle.
In an effort to discredit the citizen, on or about August 12, 2012, Clifford J. Joyce (who was a tenant of Cochran’s and who has been convicted of conspiring to distribute a controlled substance based on the attempted “framing”) planted a metal tin containing five packets of methamphetamine under the citizen’s car.
Two days later, on August 14, 2012, Murray County Sheriff’s Office Deputy Joshua Greeson (who has since been convicted of witness tampering) conducted a traffic stop on a car occupied by the citizen. During the traffic stop, several officers and a police drug dog searched the car for approximately ten minutes – but did not find any drugs. Thereafter, Captain Michael Henderson (who is Cochran’s cousin and who has also been convicted of witness tampering) had an approximately two minute telephone conversation with Cochran. Following that call, Henderson told an officer at the scene that according to his information; the citizen hid her drugs in a magnetic box under the left, rear of her car. Upon receiving that information, Greeson found the metal box magnetically attached to the car in that precise location. Inside the box, Greeson recovered five small packets containing methamphetamine. Greeson then told the citizen that he had recovered drugs from her car. At that point, the citizen stated that she had been set up. Despite this, Greeson arrested the citizen and transported her to jail.
On August 15, 2012, the day after the arrest, Cochran resigned his position as Murray County’s Chief Magistrate Judge. On August 22, 2012, Joyce admitted to law enforcement officers that he planted drugs – after which the local District Attorney dismissed the charges against the woman. Finally, in an apparent effort to cover up the framing of the woman, Cochran tried to persuade a witness to provide false information to law enforcement officers.
On May 13, 2014, a federal grand jury indicted Cochran, 44, of Chatsworth, Ga. for: (1) Conspiracy against Rights; (2) Deprivation of Rights under Color of Law, (3) Conspiracy to Distribute a Controlled Substance, and (4) Tampering with a Witness. The trial in this case began on Tuesday, December 2, and the jury began deliberations on December 10, 2014. The jury returned guilty verdicts on all counts the following day, December 11, 2014. Cochran will be sentenced February 20, 2015, at 1:30 p.m.
This case is being investigated by the Federal Bureau of Investigation and Georgia Bureau of Investigation.
Assistant United States Attorneys Jeffrey W. Davis and William L. McKinnon, Jr. are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Rome Division is http://www.justice.gov/usao/gan/.
Former Louis Berger Group Inc. Chairman, CEO, and President Admits 20-Year Conspiracy to Defraud Federal GovernmentRead the Press Release
Scheme Involved International Environmental Consulting Contracts, Including Reconstruction Contracts in Afghanistan and Iraq
TRENTON, N.J. – The former president, chief executive officer, and chairman of the board of a New Jersey-based international engineering consulting company pleaded guilty to conspiring to defraud the U.S. Agency for International Development (USAID) with respect to billions of dollars in contracts over a nearly 20-year period, U.S. Attorney Paul J. Fishman announced.
Derish Wolff, 79, of Bernardsville, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to a superseding information charging conspiracy to defraud the government with respect to claims.
“Two years after the Louis Berger Group and two of its executives confessed to defrauding USAID, the company’s former chairman admitted his role in the scheme,” U.S. Attorney Fishman said. “Derish Wolff admitted today that he enriched himself and his company with money intended for important reconstruction projects in Afghanistan and Iraq. This type of conduct cheats the American taxpayers.”
“Today’s plea is the result of impressive investigative work undertaken to root out fraud that hinders global development,” Special Agent in Charge Daniel Altman, USAID-Office of Inspector General, said.
According to documents filed in this case and statements made in court:
Wolff, the former president and CEO of Morristown-based Louis Berger Group Inc. (LBG), and the former chairman of LBG’s parent company, Berger Group Holdings Inc. (BGH), led a conspiracy to defraud USAID by billing the agency on so-called “cost-reimbursable” contracts – including hundreds of millions of dollars of contracts for reconstructive work in Iraq and Afghanistan – for LBG’s overhead and other indirect costs at falsely inflated rates.
USAID, an independent federal government agency that advances U.S. foreign policy by supporting economic growth, agriculture, trade, global health, democracy, and humanitarian assistance in developing countries, including countries destabilized by violent conflict, awarded LBG hundreds of millions of dollars in reconstruction contracts in Iraq and Afghanistan as well as in other nations. LBG calculated certain overhead rates and charged USAID and other federal agencies these rates on cost-reimbursable contracts, which enabled LBG to pass on their overhead costs to the agency in general proportion to how much labor LBG devoted to the government contracts.
From at least 1990 through July 2009, LBG, through Wolff and other former executives, intentionally overbilled USAID in connection with these cost-reimbursable contracts. The scheme to defraud the government was carried out by numerous LBG employees at the direction of Wolff.
Wolff targeted a particular overhead rate, irrespective of what the actual rate was, and ordered his subordinates to achieve that target rate through a variety of fraudulent means. From at least as early as 1990 through 2000, Wolff ordered LBG’s assistant controller to instruct the accounting department to pad its time sheets with hours ostensibly devoted to federal government projects when it had not actually worked on such projects.
At an LBG annual meeting in September 2001, Salvatore Pepe, who was then the controller and eventually became chief financial officer (CFO), presented a USAID overhead rate that was significantly below Wolff’s target. In response, Wolff denounced Pepe, called him an “assassin” of the overhead rate and ordered him to target a rate above 140 percent, meaning that for every dollar of labor devoted to a USAID contract, LBG would receive an additional $1.40 in overhead expenses supposedly incurred by LBG.
In response, Pepe and former controller Precy Pellettieri, with Wolff’s supervision, hatched a fraudulent scheme from 2003 through 2007 to systematically reclassify the work hours of LBG’s corporate employees, including high-ranking executives and employees in the general accounting division, to make it appear as if those employees worked on federal projects when they did not. Wolff admitted in court today thatPepe and Pellettieri, at Wolff’s direction, reclassified these hours without the employees’ knowledge and without investigating whether the employees had correctly accounted for their time, and at times did so over an employee’s objection.
In addition to padding employees’ work hours with fake hours supposedly devoted to USAID work, Wolff instructed his subordinates to charge all commonly shared overhead expenses, such as rent, at LBG’s Washington, D.C., office to an account created to capture USAID-related expenses, even though the D.C. office supported many projects unrelated to USAID or other federal government agencies.
“Derish Wolff spent close to 20 years creating and executing a series of elaborate fraudulent billing schemes, ultimately defrauding the federal government of tens of millions of dollars,” FBI Special Agent in Charge Aaron T. Ford said. “This long-term, complex investigation required much in terms of investigative resources and financial analysis. The FBI, in partnership with the U.S. Agency for International Development and the U.S. Department of Defense, and through its vast experience investigating complex financial schemes was able to provide such resources, resulting in today's guilty plea of Derish Wolff.”
“The plea by Mr. Wolff for his actions as chief executive of Louis Berger Group Inc. supports the need for continued aggressive oversight and investigation of allegations of wrongdoing,” Special Agent in Charge Craig W. Rupert, Defense Criminal Investigative Service Northeast Field Office, said. “This example of corporate and personal greed harms both the American taxpayer and the acquisition process, saying nothing of the harm to the reputation of the many faithful employees of this corporation. DCIS will continue to work with our law enforcement partners on our priority to search out and prosecute fraud found in Defense Department programs.”
On Nov. 5, 2010, Pepe and Pellettieri both pleaded guilty before then-U.S. Magistrate Judge Patty Shwartz to separate informations charging them with conspiring to defraud the government with respect to claims. Also on that date, LBG resolved criminal and civil fraud charges related to Wolff’s and others’ conduct. The components of the settlement included:
• a Deferred Prosecution Agreement (DPA), pursuant to which the U.S. Attorney’s Office in New Jersey suspended prosecution of a criminal complaint charging LBG with a violation of the Major Fraud Statute; in exchange, LBG agreed, among other things, to pay $18.7 million in related criminal penalties; make full restitution to USAID; adopt effective standards of conduct, internal controls systems, and ethics training programs for employees; and employ an independent monitor who would evaluate and oversee the company’s compliance with the DPA for a two‑year period;
• a civil settlement that required the company to pay the government $50.6 million to resolve allegations that LBG violated the False Claims Act by charging inflated overhead rates that were used for invoicing on government contracts; and
• an administrative agreement between LBG and USAID, which was the primary victim of the fraudulent scheme.
In the settlement, the government took into consideration LBG’s cooperation with the investigation and the fact that those responsible for the wrongdoing were no longer associated with the company.The charge to which Wolff pleaded guilty carries a maximum potential penalty of 10 years in prison and a maximum $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for March 20, 2015.
U.S. Attorney Fishman credited special agents of USAID-Office of Inspector General, under the direction of Special Agent in Charge Altman; the FBI, under the direction of Special Agent in Charge Ford; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Rupert; and the former Office of the Special Inspector General for Iraq Reconstruction, under the direction of former Special Inspector General Stuart W. Bowen Jr., for the investigation leading to the guilty plea. He also thanked the U.S. Attorney’s Office, District of Maryland, and the U.S. Department of Justice Civil Division for their roles in the case.
The case is being prosecuted by Assistant U.S. Attorneys Scott B. McBride, Deputy Chief of the U.S. Attorney’s Office’s Economic Crimes Unit, and Joyce M. Malliet of the U.S. Attorney’s Office National Security Unit.
14-438
Defense counsel: Herbert J. Stern Esq.; Mark W. Rufolo Esq.; Jeffrey Speiser Esq.; Florham Park, N.J.
Wolff, Derish Superseding Information
Former Deputy Director of Prince George’s County Housing Authority and her Husband Indicted in Scheme to Fraudulently Obtain Rental Subsidy PaymentsRead the Press Release
Greenbelt, Maryland - A federal grand jury has indicted Carla Carter, former deputy director of the Prince George’s County Housing Authority, and her husband, Raymond Carter, both age 53, of Mitchellville, Maryland, on charges related to a scheme to fraudulently receive $109,823 in rental subsidy payments from the Housing Authority. The indictment was returned on December 8th and unsealed today upon the defendants’ initial appearance.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Cary A. Rubenstein of the U.S. Department of Housing and Urban Development (HUD) Office of Inspector General; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
“When we learn of individuals in a HUD-funded position of public trust who abuse that position for personal enrichment, we vigorously investigate these individuals to make sure they are brought to justice,” said Cary Rubenstein, Special Agent in Charge, HUD OIG. “We wish to thank our law enforcement partners at the FBI and the Maryland U.S. Attorney's Office for their steadfast efforts.”
According to the 15-count indictment, Carla Carter was deputy director of the Prince George’s County Housing Authority (Housing Authority) from July 2007 through February 2012. From June through October 2008, she also served as the acting director of the Prince George’s County Department of Housing and Community Development (DHCD), the parent agency of the Housing Authority. Carla and Raymond Carter owned properties in Prince George’s County that were registered in HUD’s Section 8 Housing Choice Voucher Program (HCV Program). The HCV Program is a federal program assisting low-income families, the elderly and the disabled to afford decent, safe and sanitary housing in the private rental market. The program is administered by the Housing Authority.
The indictment alleges that from October 2007 through December 2012, the Carters conspired to defraud HUD and the Housing Authority to obtain rental subsidy payments for the properties they owned in Bowie and Capitol Heights. During most of this period, Carla Carter was an employee with the Housing Authority who formulated policy and influenced decisions with respect to Housing Authority programs. To disguise the scheme and their ownership of the properties, the Carters are alleged to have falsely identified a co-conspirator as the owner and landlord of the properties, and caused the Housing Authority to make rental subsidy payments to the co-conspirator.
The indictment alleges that from about March to at least September 2008, the Carters caused the Housing Authority to issue monthly checks from the HCV Program payable to the coconspirator. From October 2008 to February 2012 the Carters caused the Housing Authority to make direct deposits into a bank account in the name of the coconspirator. The defendants then allegedly redirected those funds into a bank account they controlled, fraudulently obtaining a total of $109,823.98 from the Housing Authority.
According to the indictment, on May 5, 2008, and April 18, 2011, Carla Carter submitted a false financial disclosure statement to the Prince George’s County Board of Ethics that failed to disclose her ownership of the properties. In 2008 or 2009, Carla Carter allegedly asked an employee of the Housing Authority and the DHCD to change the listed owner of one of the properties in DHCD’s computer records from “Carla Carter” to “Raymond Carter,” and to change the listed landlord of that property from “Carla Carter” to the name of the coconspirator.
Carla and Raymond Carter each face a maximum sentence of 20 years in prison for conspiring to commit wire fraud, 13 counts of wire fraud, and conspiring to commit money laundering. The defendants had their initial appearance this morning in U.S. District Court in Greenbelt and were released under the supervision of U.S. Pretrial Services.
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.
United States Attorney Rod J. Rosenstein praised the HUD-OIG and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Bryan E. Foreman and Nicolas Mitchell, who are prosecuting the case.
Former Correction Officer Convicted in Manhattan Federal Court of Bribery and Narcotics Offenses in Connection with Rikers Island Inmate Contraband Distribution RingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today the conviction of AUSTIN ROMAIN, a New York City Correction Officer, in connection with his receipt of thousands of dollars in cash bribes to smuggle marijuana and other contraband into Rikers Island for inmates. Following a four-day trial before the Honorable Robert W. Sweet, United States District Judge, the jury convicted ROMAIN of bribery and narcotics offenses.
Last month, former Correction Officer Khalif Phillips, who conspired with some of the same individuals as ROMAIN, was sentenced by the Honorable Richard J. Sullivan, United States District Judge, to 36 months in prison after his conviction for narcotics-related offenses.
Manhattan U.S. Attorney Preet Bharara said: “Our efforts to root out bad conduct at Rikers Island, by individuals and by the institution as a whole, continue. Today, we took another step in the right direction with the conviction of correction officer Austin Romain for taking bribes and conspiring to smuggle drugs into Rikers Island. Holding corrupt officers like Romain accountable for their misconduct is just part of the solution; it is not a substitute for the sweeping, institutional reforms necessary at Rikers Island. We will continue to press forward on both fronts – holding individual bad actors accountable and demanding meaningful, institutional reforms.”
As alleged in the Superseding Indictment against ROMAIN and established by the evidence admitted at trial:
ROMAIN became a Correction Officer in 2007. He was assigned to the George R. Vierno Center (GRVC) and later the Otis Bantum Correctional Center (OBCC) at Rikers Island. On multiple occasions in 2012 and 2013, ROMAIN smuggled marijuana, tobacco, and other contraband into the GRVC and provided it to inmates housed in that facility, who in turn sold it to other inmates. ROMAIN coordinated with the girlfriends of his inmate co-conspirators, who met with him to supply him with marijuana and to pay him for his smuggling activities. ROMAIN accepted thousands of dollars in bribes for the packages that he smuggled in to the GRVC and OBCC.
ROMAIN, 32, of Brooklyn, New York, was convicted on one count of honest services fraud, one count of bribery, and one count of conspiring to distribute marijuana. Romain was acquitted on one count that alleged he had distributed marijuana on a particular date. The marijuana conspiracy count carries a maximum term of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The bribery conviction carries a maximum term of 10 years in prison. The honest services fraud conviction carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the New York City Department of Investigation and the DEA’s New York Drug Enforcement Task Force, which comprises members of the DEA, the New York City Police Department, and the New York State Police.
The prosecution is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Russell Capone and Martin S. Bell are in charge of the prosecution.
Former Corporate Lawyer Arrested and Charged in Manhattan Federal Court in Connection with Multimillion-Dollar Ponzi SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that CHARLES A. BENNETT was arrested this morning on securities and wire fraud charges stemming from his scheme to defraud over 30 investors of more than $5 million through a Ponzi scheme that he perpetrated for more than five years. Among other false and misleading statements, BENNETT lied to investors by claiming to have exclusive access to a highly successful privately held investment fund in which he would purportedly invest the investors’ money. BENNETT solicited millions of dollars from over 30 investors, including his close friends and family members, but never actually invested any of the money in the investment fund or any other investment vehicle. Instead, BENNETT used the investors’ money for his own personal benefit and to pay back other investors.
BENNETT is expected to be presented today before United States Magistrate Judge Kevin Nathaniel Fox.
U.S. Attorney Preet Bharara said: “As alleged, Charles Bennett built a Ponzi scheme with money from friends and family, among others. The scheme, in which he allegedly told lie upon lie, lasted over five years and defrauded investors of over $5 million.”
FBI Assistant Director-in-Charge George Venizelos said: “All attorneys take an oath to deal honestly and promote their client’s best interests. As alleged, Bennett appeared to his clients to be a reputable attorney whom they could trust to invest their hard-earned money. Instead, he breached his oath and leveraged relationships he had with clients, some of whom he identified as close friends and family members, for personal financial gain. The FBI will continue to work with its law enforcement and private sector partners to investigate those whose greed-based schemes rob individuals of their hard-earned money.”
In a separate action, the U.S. Securities and Exchange Commission (“SEC”) announced civil charges against BENNETT.
According to the two-count Complaint unsealed today in Manhattan federal court:
From 2008 through November 2014, BENNETT, a former corporate lawyer at a law firm based in New York City, was engaged in a multimillion-dollar Ponzi scheme, during which he solicited money from investors based on materially false and misleading representations. Specifically, BENNETT told the investors that he himself had invested money in a highly successful privately held investment fund, and that, should they choose to invest, the investors’ money would be held in BENNETT’s account. BENNETT communicated by email and telephone with many of the investors in order to tell them about the purported status of their investments, including their purported returns. BENNETT also led most of the investors to believe that they were the only individuals to whom he had extended the offer to invest with him.
BENNETT created false and misleading paperwork in furtherance of the scheme, including “promissory notes” that he provided to the investors as a record of the amounts of money they had given to BENNETT to invest. BENNETT also provided certain investors with account statements that purported to show the amount that BENNETT (and the investors, through BENNETT) had invested. In fact, BENNETT never invested any of the investors’ money in the investment fund or in any other investment vehicle, but instead spent the money on his own personal expenses and to repay other investors.
During the course of the fraudulent scheme, BENNETT solicited more than $5 million from more than 30 investors.
BENNETT, 56, of Manhattan, is charged with one count of wire fraud and one count of securities fraud. The securities fraud count and the wire fraud count each carry a maximum sentence of 20 years in prison; and the charges carry a maximum fine of $5 million, or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the work of the Federal Bureau of Investigation, and thanked the SEC for its assistance. He added that the investigation is continuing.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Amy Lester is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is
presumed innocent unless and until proven guilty.
Charles Bennett Complaint
Former Bellevue Developer Convicted of Tax EvasionRead the Press Release
A former Bellevue based developer and lender who spent millions on gambling, thoroughbred horse racing, private aircraft, country club fees, a Bellevue penthouse, and two Palm Springs, California, homes was convicted late yesterday of two counts of tax evasion following a nine day jury trial, announced Acting United States Attorney Annette L. Hayes. THOMAS R. HAZELRIGG, III, 68, of Redmond, Washington, was indicted in July 2013. The jury deliberated three and a half hours before finding HAZELRIGG guilty. He faces up to five years in prison on each count when sentenced by U.S. District Judge Thomas S. Zilly on March 12, 2015.
“This trial laid bare Mr. Hazelrigg's wide ranging deceit and manipulation -- all in the service of greed,” said Acting United States Attorney Annette L. Hayes. “The failure to pay taxes -- especially by someone with this defendant's financial means -- tears at the fabric of our public trust. When Mr. Hazelrigg chose not to pay his fair share, he effectively cheated everyone.”
Evidence presented at trial described how HAZELRIGG first agreed to pay $533,454 in taxes owed for tax years 1989, 1990 and 1991 and then failed to pay the tax debt while living a lavish lifestyle that included multi-million dollar property purchases and remodels and expensive artwork. HAZELRIGG also evaded payment of his taxes owed for 1994, for which he had filed a return showing tax owed, but for which he made no payments. According to testimony at trial, between 1997 and 2007, HAZELRIGG illegally funneled income from his businesses into accounts that he controlled but that he kept secret from the IRS. HAZELRIGG used these accounts to pay for the multimillion dollar purchase and remodel of a Bellevue penthouse, two Chihuly glass chandeliers worth more than $460,000, and two luxury homes in Palm Springs, California. HAZELRIGG used these secret accounts to pay various household expenses including the use of a butler.
“Thomas Hazelrigg III, wrongly thought he could hide from his tax liability,” stated Special Agent in Charge Teri Alexander of IRS Criminal Investigation. “What makes this case so egregious is that he consented that he owed the tax and then immediately took exceptional actions to avoid his obligation to pay, all while living a lavish lifestyle. This verdict today sends a strong message that tax evasion will not and cannot be tolerated. Americans who pay their fair share can be confident that IRS Criminal Investigation will pursue those who do not.”
HAZELRIGG hid his assets for ten years, until the IRS liens expired. After the liens were removed, HAZELRIGG sent an email saying he was "legit again." Following that email, HAZELRIGG took out loans in his own name, and purchased a condo in his own name.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI). The case was prosecuted by Assistant United States Attorneys Matthew Diggs and Brian Werner.
Former Anderson, California, Police Officer Sentenced to Five Years in Prison for Sexually Assaulting a WomanRead the Press Release
Former Anderson, California, police officer Bryan Robert Benson, 30, of Shasta Lake, was sentenced today in federal court to five years in prison and 3 years of supervised release for violating the civil rights of a woman he arrested by sexually assaulting her while she was in his custody, announced the Justice Department and the U.S. Attorney’s Office for the Eastern District of California.
The federal indictment charged Benson with deprivation of rights under color of law in connection with the sexual assault of a woman he had placed under arrest on May 29, 2010. According to court documents, while Benson was transporting the victim to jail, he stopped in a parking lot and sexually assaulted her. Benson instructed the victim not to report it, and in order to impede any investigation, he reported to a police dispatcher that he and the victim had arrived at the Shasta County jail approximately eight minutes before they actually arrived. Benson was fired from his position with the Anderson Police Department as a result of this conduct.
“This defendant used his position as a police officer to prey on the vulnerable,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “He not only violated the victim, but also his oath to serve and protect, and the trust the community put in him. The Justice Department will continue to vigorously prosecute those who abuse their position and authority to harm those whom they have sworn to protect.”
“Police officers are sworn to protect and to serve the citizens of their community,” said U.S. Attorney Benjamin B. Wagner for the Eastern District of California. “Sexually assaulting a citizen in police custody is the worst betrayal of that duty. Officer Benson not only violated the trust of his community, he let down his fellow officers of the Anderson Police Department who work diligently every day to earn that trust.”
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Trial Attorney Chiraag Bains from the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Matthew G. Morris for the Eastern District of California.
Former Alabama Hospital Employee Sentenced to Prison for Identity TheftRead the Press Release
A former Alabama hospital employee was sentenced to serve 24 months in prison today before the Honorable Judge Myron H. Thompson in U.S. District Court for the Middle District of Alabama in connection with his role in committing stolen identity tax refund fraud, announced Acting Deputy Assistant Attorney General Larry J. Wszalek of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama.
Kamarian D. Millender was also ordered to pay $18,915 in restitution.
On July 8, 2014, Millender pled guilty to one count of aggravated identity theft. According to court documents, Millender worked as a lab technician at a medical facility in the Dothan, Alabama, area. He and others stole patient medical records that contained personal identification information, which Millender then used to file false tax returns in order to obtain fraudulent tax refunds from the Internal Revenue Service (IRS).
Millender’s actions aided in the filing of more than 100 false federal tax returns, which victimized approximately 73 individuals and attempted to defraud an estimated $536,028 from the IRS. The IRS was able to stop the vast majority of the falsely claimed refunds, but approximately $18,915 in refunds were issued.
This case was investigated by special agents of IRS-Criminal Investigation and inspectors from the U.S. Postal Inspection Service. Trial Attorneys Charles M. Edgar Jr. and Michael Boteler of the Tax Division are prosecuting the case.
More information about the Tax Division and its enforcement efforts can be found at the division website.
Elmira Man Sentenced on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Chad Dolaway, 24, of Pine City, NY, who was convicted of receipt of child pornography, was sentenced to 60 months in prison and 15 years supervised release by U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Bradley E. Tyler, who handled the case, stated that the defendant came to the attention of law enforcement in 2011 when undercover agents from both the Federal Bureau of Investigation and Homeland Security Investigations downloaded child pornography from Dolaway through a peer to peer file sharing network. The defendant received child pornography and maintaining the images on a computer that he owned. Some of the images portrayed prepubescent children and children engaged in violent conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and the Chemung County Sheriff’s Office, under the direction of Sheriff Christopher Moss.
Drug Trafficker Sentenced for Distributing Kilograms of Heroin in Cecil County and other StatesRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Orlando Nunez DeLeon, a/k/a “Alberto Ando,” age 37, of New York today to four years in prison followed by two years of supervised release for conspiring to distribute and possess with intent to distribute a kilogram or more of heroin, in connection with a distribution ring that operated in Cecil County, Maryland, Delaware, Pennsylvania and New York.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; Special Agent in Charge David G. Dongilli, Philadelphia Division of the DEA; Cecil County Sheriff Scott Adams; Chief Matthew Donnelly of the Elkton Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Cecil County State’s Attorney Ellis Rollins; and Colonel Nathaniel McQueen, Jr. of the Delaware State Police.
According to his plea agreement, from at least January 2013, DeLeon’s co-conspirators obtained bulk kilogram quantities of heroin from a Pennsylvania-based distributor and others. Co-conspirator Jorge Ayala-Pizzaro and others took the heroin to an apartment in New York where DeLeon and up to 10 others cut it and re-packaged it for sale to customers in Maryland and Delaware, including Rachine Garnett.
Beginning in January 2013, the Cecil County Drug Enforcement Task Force and DEA obtained a court-authorized wiretap on phones used by DeLeon’s co-conspirators. DeLeon is overheard in numerous conversations discussing: the labeling of heroin and its quality; preparing the heroin for customers; the people working to cut the heroin; and the transportation of the heroin.
On August 15, 2013, investigators executed a search warrant at an apartment in the Bronx, New York, where they found DeLeon and several others. They seized over a kilogram of heroin, some of which had already been repackaged into logs and some of which was in the process of being packaged. Over the course of the conspiracy, DeLeon knew that members of the conspiracy would distribute at least 10 kilograms of heroin.
Approximately 100 agents and officers from 11 law enforcement agencies assisted in the arrests of the defendants and searches of residences and vehicles associated with the defendants in Maryland, Delaware, Pennsylvania, and New York on August 15, 2013. Six co-defendants have pleaded guilty to their participation in the drug conspiracy, including Rachine Huron Garnett, a/k/a “Sheen,” “Red,” “Ray,” and “Blockhead, age 38, of Elkton, Maryland; and Michael Roberts, a/k/a “Spook,”, age 37,of New Castle, Delaware; and Jorge Ayala-Pizzaro, Jr., age 25, of Philadelphia, Pennsylvania. Garnett, Roberts and Ayala-Pizzaro were each sentenced to 10 years in prison for their roles in the conspiracy.
United States Attorney Rod J. Rosenstein praised the DEA, Cecil County Drug Task Force, and Delaware State Police for their work in the investigation. Mr. Rosenstein also recognized the U.S. Attorney’s Offices in the District of Delaware, Southern District of New York and the Eastern District of Pennsylvania, the Office of the Special Narcotics Prosecutor for the City of New York and the New York Police Department for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Kenneth S. Clark and James G. Warwick, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Dmv Employee Pleads Guilty to Mail FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. – The United States Attorney’s Office announced today that Latonya Young, 44, an employee of the Erie County Clerk’s Office who was assigned to work at the New York State Department of Motor Vehicles (NYS DMV), pleaded guilty plea to mail fraud before Chief U.S. District Court Judge William M. Skretny. The charge carries a maximum sentence of 20 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the prosecution, stated that Young worked as a motor vehicle representative at the NYS DMV and was authorized to conduct transactions. The defendant had access to a NYS DMV database and computer system that contained driver’s licenses, and motor vehicle registration and title records.
Between June 13, 2012, and August 30, 2012, Young unlawfully processed fraudulent duplicate title applications for a person working with the government in return for cash payments totaling $725. In processing the fraudulent documents, the defendant unlawfully forged the name of the person listed on the duplicate title applications.
Young also admitted that in 2010, she assisted another in amending a New York State license to create a fake identification. The fake identification was created to enable an individual under the legal drinking age to obtain alcohol.
The plea is the culmination of an investigation on the part of the Federal Bureau of Investigation, NYS Department of Motor Vehicles, under the direction of Commissioner Barbara Fiala, Buffalo Police Department, under the direction of Commissioner Daniel Derenda, NYS Department of Taxation and Finance, Criminal Investigations Division, under the direction of Commissioner Thomas Mattox, NYS Department of Financial Services, under the direction of Superintendent Benjamin Lawsky, Criminal Investigations Division, and the NYS Inspector General’s Office, under the direction of Inspector General Catherine Leahy Scott.
Young is scheduled to be sentenced on April 8, 2015 at 10:00 a.m. before Judge Skretny.
District Man Sentenced to 15-Year Prison Term for 2013 Murder in Southeast Washington-Shooting Took Place in Front of Elementary School-Read the Press Release
WASHINGTON – Anthony Williams, 18, of Washington, D.C., was sentenced today to a 15-year prison term for a murder that took place in November 2013 in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Williams pled guilty in October 2014, in the Superior Court of the District of Columbia, to a charge of second-degree murder while armed. The plea, which was contingent upon the Court’s approval, called for a 15-year prison term. The Honorable John Ramsey Johnson accepted the plea today and sentenced Williams accordingly. Following completion of his prison term, Williams will be placed on five years of supervised release.
According to the government’s evidence, the victim, James Edward Booker, 24, was walking in the 3200 block of 6th Street SE, in front of Martin Luther King Jr. Elementary School, at about 9:55 p.m. on Nov. 5, 2013. He was approached from behind by Williams and two unidentified accomplices. Williams had a handgun in his right hand, and stood in front of Mr. Booker, blocking his path. He then pointed the weapon at Mr. Booker, who turned to run away. Williams began firing the gun, shooting Mr. Booker multiple times as he ran up 6th Street. Williams and the others then fled the scene.
Mr. Booker was taken to a hospital and pronounced dead about two hours after the shooting. Williams has been in custody since his arrest a week after the murder.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also expressed appreciation for the assistance provided by the Office of the Chief Medical Examiner for the District of Columbia. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Kelly Blakeney; Litigation Technology Specialists William Henderson and Paul Howell; Investigative Analyst Zachary McMenamin, and former Assistant U.S. Attorney Lara Worm, who investigated the case. Finally, he thanked Assistant U.S. Attorney Kendra Briggs, who investigated and prosecuted the matter.
14-272District Man Found Guilty of First-Degree Murder While Armed in 2013 Murders of Siblings in Northeast Washington-Sister Died While Trying to Shield Her Younger Brother from Gunfire-Read the Press Release
WASHINGTON – Kevin Walker, 39, of Washington, D.C., was found guilty by a jury today of two counts of first-degree murder while armed for the killings of siblings Jamie and Jamal Jenkins in July 2013, U.S. Attorney Ronald C. Machen Jr. announced.
The jury also found Walker guilty of two related firearms offenses. The verdicts followed a trial in the Superior Court of the District of Columbia. The Honorable Russell F. Canan scheduled sentencing for March 12, 2015.
According to the government’s evidence, on July 20, 2013, at about 4:30 a.m., Walker killed Jamie Jenkins, 28, and her brother, Jamahl Jenkins, 21, in the 5300 block of East Capitol Street NE. Prior to the shootings, Jamie Jenkins had been involved in a fight with Walker’s girlfriend. Jamahl Jenkins was present, but not involved. After the fight broke up, the siblings left the area, but they came back a few minutes later to look for Jamie Jenkins’s lost cell phone.
Walker then came outside with a gun and approached the pair. Eyewitnesses screamed at Walker that the fight was over, and that it wasn’t serious. However, words were exchanged, and Walker then fired his gun. According to the government’s evidence, Jamie Jenkins was fatally shot when she jumped in front of the first bullet intended for her brother. Walker then followed Jamahl Jenkins and shot him six times in the back as he tried to run away.
After the shooting, Walker fled to North Carolina, where he was apprehended by the U.S. Marshals Service in September 2013.
In announcing the verdicts, U.S. Attorney Machen commended the work of the Metropolitan Police Department, which investigated the case. He also expressed appreciation for the assistance provided by the District of Columbia’s Office of the Chief Medical Examiner, the District of Columbia Department of Forensic Services, and the U.S. Marshals Service. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Litigation Technology Specialists Anisha Bhatia and Leif Hickling; Victim/Witness Advocate Marcia Rinker; Investigative Analyst Zachary McMenamin; and Paralegal Specialists Kwasi Fields and Kendra Johnson. Finally, he commended the work of Assistant U.S. Attorneys Magdalena Acevedo and Demian S. Ahn, who investigated and prosecuted the case.
14-274Denton County Sheriff’s Deputy Indicted on Child Pornography ChargesRead the Press Release
Department of Justice
Office of Public AffairsPlano, Texas –U.S. Attorney John M. Bales announced today that a deputy with the Denton County Sheriff’s Department has been indicted on child exploitation charges in the Eastern District of Texas.
The defendant, Joe Edward Cummings, 36, of Justin, TX, was indicted by a federal grand jury on December 10, 2014. According to the indictment, between June and October 2014, Cummings transported child pornography using the internet and a cloud-based storage service and he possessed digital media that contained child pornography files.
Cummings appeared before U.S. Magistrate Judge Don Bush for an initial appearance on December 12, 2014. If convicted, Cummings faces a term of imprisonment of not less than five years and up to twenty years in federal prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The indictment is the culmination of an investigation conducted by the United States Secret Service and Texas Department of Public Safety – Texas Rangers, with assistance from the Justin Police Department, Denton County Sheriff’s Office and the United States Marshal’s Service. The case is being prosecuted by Assistant U.S. Attorney Marisa Miller.
The grand jury indictment is not evidence of guilt and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Credit Card Fraud Results in 15 Year SentenceRead the Press Release
ATLANTA - Paul L. Black, a/k/a Marcus Lively and Ednecdia Sutina Johnson, a/k/a Tina Johnson have both been sentenced to 15 years in prison for access device fraud, possession of device-making equipment, possession of false identification documents, and possession of a document-making implement.
“This case demonstrates that so-called white collar crime can also give rise to incredible violence,” said United States Attorney Sally Quillian Yates. “This credit card lab and large volume of account numbers is a reflection of the increasingly sophisticated tools of identity thieves.”
“The defendants endeavored to use technology to their benefit and others’ detriment,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office, “This case illustrates that there are no victimless crimes and the sentences prove that those who commit crimes will be put behind bars.”
According to United States Attorney Yates, the charges and other information presented in court: Early in the morning of December 21, 2011, Clayton County officers responded to a 911 call reporting a home invasion at the residence of the defendants. When they arrived at the scene, officers found one of the presumed home invaders at the foot of the driveway with a bullet wound to his head. The officers also found the front door of the house kicked in and saw a sawed-off pump shotgun in a large pool of blood in the foyer. Blood was also on the columns in the foyer and the walls had multiple bullet holes.
The responding officers searched the house where they found more blood in the master bedroom, including on both doors and at the foot of the bed. The bedroom door also had been shot by a shotgun and the door that led from the bedroom to the backyard was also smeared with blood. The officers moved to the basement, where they discovered a trail of blood leading to a locked door that had blood smeared on its handle. Officers forced the door open and when they entered the room they found a highly sophisticated credit card lab that contained credit card presses, computers, printers, card embossers, stacks of blank credit cards and partially completed cards, cash, and two handguns.
Ultimately, the United States Secret Service determined that the lab had over 97,000 unique credit and debit card account numbers, over 800 completed fraudulent credit cards, and about 100 fake IDs. They also found $199,000 in cash, over $380,000 in jewelry, and gift cards worth more than $43,000.
Paul L. Black and Ednecdia Sutina Johnson lived alone at the house. As a result of the discovery of the credit card lab, fraudulent credit cards, and fake IDs, Black and Johnson were indicted by a federal grand jury in a four count indictment charging access device fraud, that is possession of counterfeit credit cards, possession of device-making equipment, the credit card making machines, possession of false identification documents, and possession of document-making implements. At the time of their arrest, Johnson was on supervised release relating to her earlier conviction for federal bank fraud.
Black, 48, of Jonesboro, Ga., has been sentenced by United States District Court Judge Richard Story to 15 years in prison to be followed by three years of supervised release. Black was convicted on these charges on March 18, 2014, after he pleaded guilty. Johnson, 48, also of Jonesboro, Ga., has been sentenced to 15 years in prison to be followed by three years of supervised release. Johnson was convicted on these charges on March 18, 2014, after she pleaded guilty.This case was investigated by the United States Secret Service.
Assistant United States Attorney Christopher J. Huber prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Costa Rican Woman Sentenced to Prison for Role in Human Smuggling ConspiracyRead the Press Release
A citizen and resident of Costa Rica was sentenced today to 30 months in prison for her leadership role in a conspiracy to smuggle undocumented migrants to the United States.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, and Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE- HSI) Washington, D.C., Field Office made the announcement. U.S. District Judge Ursula M. Ungaro of the Southern District of Florida imposed the sentence.
Mercedes Morera Roche, 49, of Costa Rica, was extradited to the United States from Panama on Aug. 21, 2014, to face human smuggling charges. Roche pleaded guilty on Oct. 6, 2014, to conspiracy to smuggle more than 25 undocumented migrants from Cuba to the United States.
According to her plea agreement, Roche admitted that between 2004 and 2011, she was an organizer of a human smuggling network that provided instructions, fraudulent identity and travel documents, escorts, transport, safe house locations, and other assistance to facilitate the illicit travel of undocumented migrants to the United States. Roche admitted that in some cases, she provided fraudulent passports so that undocumented migrants could fly to the United States with the help of corrupt foreign airline and immigration officials. Roche directed the migrants to destroy the fraudulent documents during the flights to the United States, and instructed the migrants about what to do and say to U.S. immigration authorities upon landing. In other cases, Roche coordinated the smuggling of undocumented migrants over land routes through Latin America and Mexico into the United States. Roche solicited payments of up to $10,000 for each undocumented migrant.
The investigation was pursued under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates with and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
The investigation was conducted by ICE- HSI’s Washington, D.C. Field Office with support from the Human Smuggling Trafficking Center and U.S. Customs and Border Protection’s National Targeting Center. Critical assistance was also provided by HSI’s Miami Field Office and the ICE Attaché Office in Panama. Extradition assistance was provided by the Criminal Division’s Office of International Affairs, INTERPOL Washington and the United States Marshals Service. The Justice Department is grateful for the significant assistance provided by the Panamanian Ministry of Foreign Affairs. This case was prosecuted by Trial Attorney Michael Sheckels of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Robert Emery of the Southern District of Florida.
Cortez Woman Pleads Guilty to Filing False Tax Returns Relating to Theft of FundsRead the Press Release
DENVER – Lisa Kay Balderrama, age 50, of Cortez, Colorado, pled guilty last week in Durango before U.S. Magistrate Judge David L. West to making false statements on a tax return, United States Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Balderrama is scheduled to be sentenced by a U.S. District Court in Durango on April 8, 2015.
Balderrama waived her right to be indicted and thus was charged by Information on October 20, 2014. She pled guilty before Magistrate Judge West in Durango on December 2, 2014.
According to information contained in the plea agreement as well as the Information, Lisa Balderrama began working for Empire Electric Association in Cortez, Colorado in December 2005 as a Customer Services Representative. At the end of October 2012, accounting employees for Empire noted that the manual check register was not reconciling with internal bookkeeping and that the two were off by over $200,000. These employees brought this to Balderrama's attention, questioning whether certain deposits had been made. Balderrama convinced the other employees that deposits had gone into the bank, that everything was okay, and that she would find the discrepancy.
In mid-December 2012, she was again questioned about the discrepancy and about a $277,000 electronic transaction she had posted on October 22, 2012. The following Monday, Balderrama reported to work and confessed to her superiors that she had stolen approximately $280,000 from Empire Electric. The investigation revealed that from approximately 2009 through 2012, Balderrama stole money from customers who paid cash for their electric bills. Empire’s accountant conducted an investigation into their books and found that $277,035 in adjustments had been made to 184 accounts in order to cover the shortages due to Balderrama’s thefts.
Balderrama failed to report a combined total income of $277,035 on her tax returns in 2010, 2011, 2012 and 2013. The tax loss to the IRS which resulted from Balderrama's false statements totaled $64,477.
Balderrama pled guilty to one count of a false statement on a tax return, which carries a penalty of not more than 3 years in federal prison, and a fine of up to $250,000.
This case was investigated by Internal Revenue Service – Criminal Investigation with assistance from the Cortez City Police Department. Balderrama is being prosecuted by Assistant U.S. Attorney Dondi Osborne in the Colorado U.S. Attorney’s Durango Branch Office.
Coeur D'Alene Man Pleads Guilty to Unauthorized Use of National ForestRead the Press Release
COEUR D'ALENE - Peter Todd Gokey, 46, of Blanchard, Idaho, pleaded guilty yesterday to unauthorized use of National Forest lands, U.S. Attorney Wendy J. Olson announced. Gokey was indicted by a federal grand jury in Coeur d'Alene on March 18, 2014.
According to the plea agreement, Gokey admitted that on and prior to January 15, 2013, he went on U.S. Forest Service land with the intent to cut down timber on the land, an activity that requires special-use authorization issued by the Forest Service. The defendant had not applied for a special-use authorization to deforest the land when scouting the land for clearing.
Use or occupancy of the National Forest System land or facilities without special-use authorization is punishable by up to six months in prison or five years of probation, and a maximum fine of $500.00.
Sentencing is set for February 18, 2015, before U.S. Magistrate Judge Candy W. Dale at the federal courthouse in Coeur d'Alene.
The case was investigated by the U.S. Forest Service.
Cicero Man Admits Mailing Fake Anthrax/Ricin LettersRead the Press Release
SYRACUSE, NEW YORK - BRIAN DANIEL NORTON, age 59, of Cicero, New York, entered a guilty plea in U.S. District Court in Utica to two federal felony counts of conveying false information and hoaxes in violation of 18 U.S.C. §1038(a) according to United States Attorney Richard S. Hartunian. Norton faces a maximum possible sentence of five years incarceration and a $250,000 fine. He is being detained pending sentencing scheduled in Utica for April 10, 2015 at 11 am.
In court, Norton admitted he mailed more than 20 death threat letters that contained a white powder he claimed to be either anthrax or ricin. The letters were mailed to various addresses in the Syracuse, New York area and elsewhere between 1997 and 2012. Those receiving the letters included LeMoyne College and Bishop Ludden High School in Syracuse, as well as U.S. Senator John McCain, then-Secretary of Defense Robert Gates and former Congresswoman Ann Marie Buerkle. Later analysis of the powder contained in the letters proved that it was harmless.
The case was investigated by the Federal Bureau of Investigation, Syracuse Resident Office and the United States Postal Inspection Service, Syracuse Office, and prosecuted by Assistant United States Attorney Stephen C. Green.
For additional information, contact Executive Assistant U.S. Attorney John G. Duncan at 315- 448-0672.
Cicero Man Admits Mailing Fake Anthrax/Ricin LettersRead the Press Release
Brian Daniel Norton, age 59, of Cicero, New York, entered a guilty plea in U.S. District Court in Utica to two federal felony counts of conveying false information and hoaxes, according to United States Attorney Richard S. Hartunian. Norton faces a maximum possible sentence of five years incarceration and a $250,000 fine. He is being detained pending sentencing scheduled in Utica for April 10, 2015, at 11 am.
In court, Norton admitted he mailed more than 20 death threat letters that contained a white powder he claimed to be either anthrax or ricin. The letters were mailed to various addresses in the Syracuse, New York, area and elsewhere between 1997 and 2012. Those receiving the letters included LeMoyne College and Bishop Ludden High School in Syracuse, as well as U.S. Senator John McCain, then-Secretary of Defense Robert Gates and former Congresswoman Ann Marie Buerkle. Later analysis of the powder contained in the letters proved that it was harmless.
The case was investigated by the Federal Bureau of Investigation, Syracuse Resident Office and the United States Postal Inspection Service, Syracuse Office, and prosecuted by Assistant United States Attorney Stephen C. Green.
For additional information, contact Executive Assistant U.S. Attorney John G. Duncan at 315- 448-0672.
Chief Technology Officer of Liberty Reserve Sentenced to Five Years in PrisonRead the Press Release
The former chief technology officer of Liberty Reserve was sentenced today to serve five years in prison for conspiring to operate an unlicensed money transmitting business that processed more than $16 billion through Liberty Reserve’s digital currency system. The Court found that Marmilev understood the illegal nature of Liberty Reserve’s business and that he knew that a wide array of criminal enterprises used Liberty Reserve to further their criminal activity.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Preet Bharara of the Southern District of New York made the announcement.
“Marmilev used his technical expertise to create a virtual currency business that was used extensively by criminals throughout the world,” said Assistant Attorney General Caldwell. “Marmilev boasted that the crime group was beyond the reach of U.S. law enforcement, but he couldn’t have been more wrong. Today’s prison sentence shows that those who hide their illegal activities on-line and off-shore will be caught and sent to prison.”
“Mark Marmilev spent years designing and maintaining the technological architecture that allowed Liberty Reserve to operate a global payment processor and money transfer system that catered to criminals,” said Manhattan U.S. Attorney Preet Bharara. “Now, he will pay for that crime with five years in federal prison.”
Mark Marmilev, 35, of Brooklyn, New York, pleaded guilty on Sept. 11, 2014, for his role in designing and maintaining the technological infrastructure for Liberty Reserve, a company that operated one of the world’s most widely used digital currency services. In addition to the prison sentence, U.S. District Judge Denise L. Cote also ordered Marmilev to pay a $250,000 fine.
According to allegations contained in the indictment, and statements made in other court documents filed in Manhattan federal court and related court proceedings:
Liberty Reserve was incorporated in Costa Rica in 2006 and billed itself as the Internet’s “largest payment processor and money transfer system.” Liberty Reserve was created, structured, and operated to help users conduct illegal transactions anonymously and launder the proceeds of their crimes. It emerged as one of the principal money transfer agents used by cybercriminals around the world to distribute, store, and launder the proceeds of their illegal activity because it provided an infrastructure that enabled cybercriminals to conduct anonymous and untraceable financial transactions.
Before being shut down by the U.S. government in May 2013, Liberty Reserve had more than five million user accounts worldwide, including more than 600,000 accounts associated with users in the United States, and processed tens of millions of transactions through its system, totaling more than $16 billion in funds. These funds encompassed suspected proceeds of credit card fraud, identity theft, investment fraud, computer hacking, child pornography, narcotics trafficking, and other crimes.
According to court documents, Marmilev was a longtime associate of Liberty Reserve founder Arthur Budovsky, and he served as Liberty Reserve’s chief technology officer. In that role, Marmilev was principally responsible for designing and maintaining Liberty Reserve’s technological infrastructure. Marmilev also promoted Liberty Reserve to criminals on the Internet, where, using aliases, he touted Liberty Reserve’s lack of anti-money laundering policies and its tolerance for “shady businesses.”
In conjunction with the sentencing, a civil forfeiture complaint was filed today seeking the forfeiture of Gourmet Boutique, a retail grocery business located in Brooklyn, New York, and the forfeiture of Marmilev’s interest in Grimaldi’s, a pizzeria located in the Coney Island area of Brooklyn, New York; according to the complaint, Marmilev purchased these business interests using more than $1.6 million in Liberty Reserve proceeds.
This case is being investigated by the Internal Revenue Service-Criminal Investigation, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with assistance fromthe United States Secret Service’s New York Electronic Crimes Task Force. The Judicial Investigation Organization in Costa Rica, the National High Tech Crime Unit in the Netherlands, the Spanish National Police’s Financial and Economic Crime Unit, the Cyber Crime Unit at the Swedish National Bureau of Investigation, and the Swiss Federal Prosecutor’s Office also provided assistance.
This case is being prosecuted jointly by the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS) and the U.S. Attorney’s Office’s Complex Frauds and Cybercrime Unit and Money Laundering and Asset Forfeiture Unit in the Southern District of New York, with assistance from the Criminal Division’s Office of International Affairs and Computer Crime and Intellectual Property Section.
Trial Attorney Kevin Mosley of AFMLS and Assistant U.S. Attorneys Serrin Turner, Andrew Goldstein and Christine Magdo of the Southern District of New York are in charge of the prosecution, and Assistant U.S. Attorney Christine Magdo is in charge of the forfeiture aspects of the case.