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12 December 2014
- 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.
Chief Technology Officer of Liberty Reserve Sentenced in Manhattan Federal Court to Five Years in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Leslie R. Caldwell, Assistant Attorney General for the Justice Department’s Criminal Division, announced that MARK MARMILEV was sentenced today to five years in prison for conspiring to operate an unlicensed money transmitting business that he knew involved the transmission of funds derived from criminal activity. MARMILEV was principally responsible for designing and maintaining the technological infrastructure for Liberty Reserve, a company that operated one of the world’s most widely used digital currency services. MARMILEV pled guilty in September 2014 before U.S. District Judge Denise L. Cote, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “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. Now, he will pay for that crime with five years in federal prison. ”
Assistant Attorney General Leslie R. Caldwell said: “Marmilev used his tech savvy to create a virtual currency business that was used extensively by criminals throughout the world. He and Liberty Reserve’s founders boasted they were outside the reach of U.S. law enforcement, and he couldn’t have been more wrong. His prison sentence shows that those who hide their illegal activities from the scrutiny of the Justice Department will be caught and will go to prison.”
According to allegations contained in the Indictment filed against Liberty Reserve, MARMILEV, and six other individual defendants, and statements made in other 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. Liberty Reserve was used extensively for illegal purposes, functioning as the bank of choice for the criminal underworld because it provided an infrastructure that enabled cybercriminals around the world 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.
MARMILEV was a longtime associate of Liberty Reserve founder Arthur Budovsky and 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 worked for Liberty Reserve for years despite knowing that the business was used extensively to process criminal transactions. MARMILEV even promoted Liberty Reserve to criminals on Internet discussion forums, where, using aliases, he touted Liberty Reserve’s lack of anti-money laundering policies and its tolerance for, as he put it, “shady businesses.”
In addition to the prison sentence, MARMILEV, 35, of Brooklyn, New York, was sentenced to three years of supervised release and a $250,000 fine. 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.
Mr. Bharara praised the outstanding work of the United States Secret Service, the Internal Revenue Service-Criminal Investigation, and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, which worked together in this case as part of the Global Illicit Financial Team. Mr. Bharara also thanked the United States Secret Service’s New York Electronic Crimes Task Force for their extraordinary assistance with the investigation. Additionally, Mr. Bharara specially thanked all the international law enforcement agencies that assisted in the investigation, in particular, the Judicial Investigation Organization in Costa Rica, the National High Tech Crime Unit in the Netherlands, the Spanish National Police, Financial and Economic Crime Unit, the Cyber Crime Unit at the Swedish National Bureau of Investigation, and the Swiss Federal Prosecutor’s Office.
This case is being prosecuted jointly with the Department of Justice’s Asset Forfeiture and Money Laundering Section (“AFMLS”), which is overseen by Assistant Attorney General Leslie R. Caldwell. Mr. Bharara thanked AFMLS for its partnership and also thanked the Department of Justice’s Office of International Affairs and Computer Crime and Intellectual Property Section for their support.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit and Money Laundering and Asset Forfeiture Unit. Assistant United States Attorneys Serrin Turner, Andrew Goldstein, and Christine Magdo of the Southern District of New York and Trial Attorney Kevin Mosley of AFMLS are in charge of the prosecution, and Assistant United States Attorney Christine Magdo is in charge of the forfeiture aspects of the case.
The charges contained in the Indictment against certain of MARMILEV’s co-defendants remain pending and are merely accusations. Those defendants are presumed innocent unless and until proven guilty.
California Woman Sentenced for Failure to Register as a Sex Offender in South CarolinaRead the Press Release
Contact Person: William E. Day II (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Shana Marie Lawson, age 36, was sentenced in federal court in Columbia, South Carolina, for failure to register as a sex offender, a violation of 18 U.S.C. § 2250(a). Chief United States District Judge J. Michelle Childs of Columbia sentenced Lawson to 15 months to be followed by 5 years supervised release .
Evidence presented at the change of plea hearing established that Lawson was sentenced in Virginia for "Travel with Intent to Engage in Sexual Act with a Minor." After serving her sentence in Florida, Lawson moved to California and registered as a sex offender, but then moved to Lancaster, South Carolina, without registering. Investigation revealed that she had been living with someone she met in prison and that person’s family.
The case was investigated by agents of the U.S. Marshal. Assistant United States Attorney William E. Day II of the Columbia office prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.Bloods Gang Leader Sentenced to 10 Years in Prison in Howard County Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Rouchell Chesson, a/k/a “Black,” age 31, of Washington, D.C., today to 10 years in prison followed by three years of supervised release for conspiring to participate in a racketeering conspiracy in connection with the Bloods gang operating primarily out of Howard County, Maryland.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Howard County Police Chief Gary L. Gardner; Baltimore Police Commissioner Anthony W. Batts; and Howard County State’s Attorney Dario Broccolino.
The defendant was identified as a member of the Bloods as the result of a long term investigation conducted by ATF and the Howard County Police Department. The investigation included four court ordered wiretaps on gang members’ cell phones. The Bloods, a national criminal street gang with members operating in and around Howard County, Maryland, committed violent acts within the gang to maintain discipline, and against rival gangs.According to his plea agreement, Chesson was a leader in the “Tree Top Piru” or “TTP” set of the Bloods gang, and an associate of Blood gang members since at least 2011. Chesson directed and participated in, or had knowledge of, robberies committed by fellow gang members, sold guns, and dealt heroin and prescription pills, to and with fellow gang members. Chesson provided gang documents to new gang members, instructed them to memorize the gang rules and then destroy the documents, sanctioned TTP members for unauthorized conduct and granted membership into TTP.
To date, 19 defendants have pleaded guilty to their roles in the racketeering and drug conspiracies, as a result of the two year long investigation by the ATF and Howard County Police Department into Bloods/CTC gang activity in Howard County. Michael Dominique Johnson, a/k/a "Ace", age 20, of Columbia, Maryland was sentenced to 205 months in prison, after admitting that he committed at least three armed robberies of individuals in which drugs, cash and/or other items were stolen; assaulted others; and sold crack cocaine, oxycodone and other drugs. Johnson also prostituted females, including a minor.
Kenneth Ragan-Armstrong, a/k/a "Keezy," age 23, of Savage and Laurel, Maryland, was sentenced to 193 months in prison after admitting that he founded “Cut Throat Committee,” or “CTC,” a gang whose members are associated with and/or members of the Bloods gang. Ragan-Armstrong committed at least two armed robberies of individuals in which drugs, cash and/or other items were stolen. During one of the robberies, a home invasion in Laurel, Maryland, he pistol whipped the victim on the head resulting in serious bodily injury. Ragan-Armstrong regularly sold drugs, primarily marijuana. During his two day sentencing hearing, witnesses also testified about Ragan-Armstrong’s participation in a sexual assault that occurred in December 2010 at an apartment in Catonsville, Maryland. The Court credited the evidence of the sexual assault when it imposed Ragan-Armstrong’s sentence.
Anthony Preston, a/k/a “40,” or “Tone,” age 27, of Laurel, Maryland, admitted to directing or participating in at least 4 assaults, including an April 20, 2013 assault of a former gang member with a knife and mace in a convenience store. Preston is seen on the store’s surveillance video hitting the girlfriend of the gang member in her face and attempting to spray her with mace. Bystanders, including a young child, were injured by the mace. Preston was later overheard by law enforcement admitting to the assault and stating that if he’d had his gun, he would have killed the man. Preston also was a leader in drug trafficking, selling drugs, including crack cocaine and oxycodone, as early as 2007. Preston, who was previously convicted of armed robbery and attempted armed robbery, has agreed to be sentenced to 20 years in prison at his sentencing scheduled on February 6, 2015.
Giovanni Wright, a/k/a "G," age 22, of Elkridge, Maryland, admitted that he and a co-defendant robbed a rival gang member at gunpoint. In January 2013, Wright fired a gun at a victim’s residence as he and another co-defendant drove by in a truck. Two bystanders were outside and their car was damaged in the shooting. Wright also sold firearms with and to fellow gang members who were prohibited from possessing the firearms. Wright has agreed to be sentenced to 18 years in prison at his sentencing scheduled for January 16, 2015.
Mr. Rosenstein commended the ATF, Howard County Police Department, Baltimore Police Department and Howard County State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and Sandra Wilkinson, who prosecuted the case.Aurora Return Preparer Sentenced for Filing False Tax ReturnsRead the Press Release
DENVER – Keith G. Smith, age 54, of Aurora, Colorado, was sentenced earlier this week to serve 9 months in federal prison by U.S. District Court Judge Raymond P. Moore for filing and assisting in preparing false tax returns, United States Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. In addition, Judge Moore ordered Smith to pay $128,893.87 in restitution to the IRS. Smith was ordered by Judge Moore to report to authorities by 3:00 p.m. on the day of sentencing.
Smith was indicted by a federal grand jury in Denver on March 11, 2014. He pled guilty before Judge Moore on September 16, 2014. He was sentenced on Tuesday, December 9, 2014.
According to information contained in the indictment and plea agreement, beginning in 1987, Smith operated a tax return preparation business. He told some of his clients that he formerly worked for the IRS and conducted audits, seized assets, and carried a weapon. When in fact, for about four years Smith worked in an administrative positon at the IRS; he was not a criminal investigator, he did not conduct audits, and he did not seize assets. In 2000, the IRS assessed Smith a civil penalty because of underreported tax liabilities on returns that he had prepared for clients. Smith thereafter continued to prepare clients' returns but no longer signed them as preparer, instead indicating on the returns that they were prepared by the taxpayers.
Among the returns that Smith prepared for the years 2006 through 2010 were 40 false tax returns requesting refunds, in amounts ranging from $715 to $7,124, all of which the IRS paid. Many of the returns falsely claimed deductions for medical and dental expenses, home mortgage interest payments, education expenses, and charitable contributions. The false statements on the 40 returns resulted in a total tax loss of $138,148. In addition, Smith falsified his personal income tax returns for years 2008 and 2009.
This case was investigated by Internal Revenue Service – Criminal Investigation. Smith was prosecuted by the Economic Crime Section of the Criminal Division of the Colorado U.S. Attorney’s Office.
- Alice Man Heads to Prison for Digging Graves While Receiving Social Security Disability
Alexandria Man Sentenced to 11 Years in Prison for Sex Trafficking of A ChildRead the Press Release
ALEXANDRIA, Va. – Tayron Tyree Weeks, 24, of Alexandria, was sentenced today to 132 months in prison, followed by 10 years of supervised release for sex trafficking of a child.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; Colonel Edwin C. Roessler, Jr., Chief of Police of the Fairfax County Police Department; and Earl L. Cook, Chief of Police of the Alexandria Police Department, made the announcement after sentencing by U.S. District Judge T.S. Ellis, III.
Weeks pleaded guilty on September 18, 2014. According to court documents, Weeks met the victim at the Braddock Road Metro Station and then took her to a friend’s apartment in Alexandria, where Weeks engaged in sexual acts with the victim. Weeks then asked the victim if she was interested in earning money by selling her body, and Weeks encouraged her to do so. The victim told Weeks that she was only 14 years old, and Weeks responded “money is money,” and “you might as well get paid for something most girls do for free.” The victim eventually contacted police and an undercover detective, posing as a teenage girl, started conversing with Weeks about Weeks’s desire to prostitute the undercover detective.
Weeks informed a friend that he intended to prostitute some girls, and this man told Weeks that that would be “sex trafficking,” that sex trafficking was unlawful and immoral, and that this conduct would likely result in Weeks being imprisoned. Weeks responded that he did not think that the police would catch him.
This case was investigated by the FBI’s Washington Field Office, the Fairfax County Police Department, and the Alexandria Police Department. Assistant U.S. Attorney Michael J. Frank is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-313.
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Alexandria Man Sentenced for Failing to Pay Employment TaxesRead the Press Release
ALEXANDRIA, Va. – Nureni Abayomi Baruwa, 57, of Alexandria, was sentenced today to 12 months and one day in prison, followed by three years of supervised release for employment tax fraud. Baruwa was also ordered to pay $238,345.52 in restitution.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Larry J. Wszalek, Acting Deputy Assistant Attorney General for the Department of Justice Tax Division, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
According to the plea agreement and statement of facts, Baruwa operated a car detailing business called NAB International Group of Companies Inc. This business was incorporated by Baruwa in 1993 in the Commonwealth of Virginia and he served as the president. Baruwa was in charge of withholding employment taxes from his employees’ wages, paying over the withheld amount to the IRS and reporting these amounts to the IRS by filing quarterly employment tax returns.
According to court documents, in all but three quarters, beginning with the first quarter of 2003 through the last quarter of 2010, Baruwa failed to timely collect, account for and pay the IRS the taxes withheld from his employees’ paychecks, as well as the employer’s portion of the employment taxes. Furthermore, in all but five quarters during the same period, Baruwa failed to file NAB’s quarterly employment tax returns with the IRS in a timely manner. Additionally, since at least 2006, Baruwa has failed to file an individual income tax return in a timely manner, despite the fact that he was legally required to do so annually. According to court documents, the tax loss is between $200,000 and $400,000.
This case was investigated by IRS-Criminal Investigation. Assistant Chief Caryn Finley of the Department of Justice Tax Division, and Assistant U.S. Attorney Uzo Asonye prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:12-cr-370.
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Albuquerque Man Pleads Guilty to Federal Armed Bank Robbery and Firearms ChargesRead the Press Release
ALBUQUERQUE – Jeremy Gabriel Trujillo, 35, of Albuquerque, N.M. pleaded guilty yesterday in federal court to an armed bank robbery charge and to brandishing a firearm during and in relation to a crime of violence.
Trujillo was arrested on July 28, 2014, on a criminal complaint charging him with robbing the Bank of Albuquerque branch on Wyoming Blvd. NE in Albuquerque, N.M. The criminal complaint alleged that Trujillo robbed the bank at gunpoint that day. On Aug. 26, 2014, Trujillo was indicted and charged with being a felon in possession of a firearm and ammunition; armed bank robbery; and brandishing a firearm during and in relation to a crime of violence. Court records reflect that in July 2014, Trujillo was prohibited from possessing firearms or ammunition because he previously had been convicted of at least two felony offenses.
During yesterday’s hearing, Trujillo entered guilty pleas to Counts 2 and 3 of the indictment charging him with armed bank robbery and brandishing a firearm during and in relation to a crime of violence. Trujillo admitted entering the Bank of Albuquerque branch and brandished a firearm in the direction of three bank tellers while demanding that they give him cash. After the bank tellers complied with his demands, Trujillo left the bank.
At sentencing, Trujillo faces a statutory maximum penalty of 25 years in prison for his armed bank robbery conviction. He also faces a minimum of seven years in prison for his firearms conviction which must be served consecutive to the sentence imposed for the armed bank robbery conviction. Under the terms of his plea agreement, Trujillo also must pay restitution for bank robberies committed on April 29, 2014 at the Bank of Albuquerque and on May 7, 2014 at the Wells Fargo Bank in Albuquerque.
Trujillo has been in federal custody since his arrest. He remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department and is being prosecuted by Assistant U.S. Attorney David M. Walsh.
11 December 2014
Wheeling, WV Woman Convicted of Selling Cocaine Near Local SchoolRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Krista Dennis, 28, of Wheeling, West Virginia, was convicted in federal court for selling crack cocaine near a local elementary school, United States Attorney William J. Ihlenfeld, II announced today.
An investigation by the Benwood, West Virginia Police Department, the Marshall County Drug and Violent Crime Task Force, and the Ohio Valley Drug and Violent Crime Task Force revealed that Dennis sold crack cocaine in July 2014 near Ritchie Elementary School in Wheeling, West Virginia. Both task forces are HIDTA-funded initiatives.
Dennis pled guilty to one count of “Distribution of Cocaine Base Near a Protected Location.” She faces up to 40 years in prison and a fine of up to $2,000,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert McWilliams is prosecuting the case on behalf of the government.
Senior U.S. District Judge Frederick P. Stamp presided.
Wellsville Man Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Anthony R. Kidd, 54, of Wellsville, N.Y., who was convicted of conspiracy to manufacture, possess with intent to distribute and distribute, 50 grams or more of methamphetamine, was sentenced to 60 months in prison and ordered to pay $3,143 in restitution to the New York State Department of Environmental Conservation by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who handled the case, stated that on January 26, 2012 law enforcement officers executed a search warrant at an apartment building on South Main St. in Wellsville. Officers discovered items used to manufacture methamphetamine as well as a quantity of finished methamphetamine. A subsequent search warrant executed at Kidd's apartment on Madison Avenue in Wellsville led to the discovery of an active methamphetamine laboratory. The court’s restitution amount was to repay the state for costs associated with the environmental clean-up of these laboratory sites.
The defendant was arrested along with April Patterson, Jason Patterson, John Faber and Justin McPherson. April Patterson was sentenced to 30 months in prison; Jason Patterson 151 months; John Faber 40 months; and Justin McPherson 24 months.
Today’s sentencing is the result of an investigation on the part of the New York State Police, under the direction of Major Michael Cerretto, the Wellsville Police Department, under the direction of Chief Timothy O’Grady, and the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division. Special assistance was provided by Allegany County District Attorney Keith Slep.
Wellpinit Man Sentenced to Prison for Sexual Assault and Firearms ViolationRead the Press Release
Spokane –Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Christopher James Carson, age 32, of Wellpinit, Washington, was sentenced on today after having previously pleaded guilty to Abusive Sexual Contact and Possession of a Firearm by a Prohibited Person. United States District Court Judge Thomas O. Rice sentenced Carson to a combined 70- month term of imprisonment, to be followed by five years of court supervision after he is released from Federal prison. Judge Rice ordered Carson to register as a sex offender.
According to information disclosed during court proceedings, on May 14, 2013, Carson, a guest at the victim’s house, snuck into her bedroom while she was asleep with her boyfriend and sexually assaulted her. During the investigation of that case, law enforcement learned that he had illegally possessed a firearm on two occasions after being previously convicted of a felony.
Michael C. Ormsby stated: "This case exemplified the strong working partnership between the Spokane Tribal Police Department and the FBI – they must be commended for the dedication and hard work demonstrated in this case. Sexual assaults will not be tolerated within any Indian reservation located in the Eastern District of Washington. The United States Attorney’s Office is and will continue to be committed to prosecute aggressively sexual assault and firearms violations that occur within this District, particularly any such assault or violation that occur within any of the four Indian reservations in eastern Washington.”
This investigation was conducted by Spokane Tribal Police Department and the Federal Bureau of Investigation. The case was prosecuted by Rudy J. Verschoor, an Assistant United States Attorney for the Eastern District of Washington.
CR-13-0150-TOR
CR-13-0151-TORVenezuelan Man Admits Making Threatening Calls to Newtown Residents After School Shooting TragedyRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that WILFRIDO A. CARDENAS HOFFMAN, 31, of El Hatillo, Venezuela, waived his right to indictment and pleaded guilty today in Hartford federal court to making threatening phone calls to residents of Newtown, Connecticut, shortly after the Sandy Hook Elementary School shooting tragedy in December 2012.
According to court documents and statements made in court, on December 16, 2012, two days after the shooting that claimed 26 lives at Sandy Hook Elementary School in Newtown, CARDENAS HOFFMAN used a voice over IP application on an iPod to make numerous phone calls from his home in Venezuela to Newtown residences. In one of the telephone calls, HOFFMAN stated: “This is Adam Lanza. I’m gonna [expletive] kill you. You’re dead. You’re dead. You hear me? You’re dead.” In another phone call, HOFFMAN stated: “This is Adam Lanza. I’m gonna kill you. You’re dead. With my machine gun. You’re dead [expletive].”
The investigation revealed that CARDENAS HOFFMAN made more than 90 calls to approximately 47 telephone numbers of Newtown residences. Not all of the calls were successfully placed and answered.
“As we approach the second anniversary of this terrible event, we remember all of the victims whose lives were lost, and their family and friends who still struggle to manage their grief,” stated U.S. Attorney Daly. “These threatening calls, just two days after the tragedy, compounded the collective suffering of all of the citizens of Newtown and needlessly stressed law enforcement resources at a critical time. It is reprehensible criminal conduct. We are committed to investigating similar hoax crimes and prosecuting all who commit them, here and abroad.”
“Mr. Hoffman’s actions in the days after December 14, 2012, further victimized an already vulnerable community” stated FBI Special Agent in Charge Ferrick. “As a society we simply cannot tolerate this type of heinous behavior. Crimes like this will continue to be a priority of the FBI.”
CARDENAS HOFFMAN was charged by criminal complaint on May 20, 2013. The complaint remained sealed until CARDENAS HOFFMAN was arrested on June 21, 2014, in Miami as he transitioned through Miami International Airport en route to Mexico from Venezuela. He has been detained since his arrest.
The charge of making threatening telephone calls carries a maximum term of imprisonment of five years and a fine of up to $250,000. CARDENAS HOFFMAN is scheduled to be sentenced by U.S. District Judge Michael P. Shea on February 12, 2015.
This matter has been investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorneys Krishna Patel and Edward Chang.
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(203) 821-3722 [email protected]Vallejo Man Found Guilty of Participating in Multi-year Bank Fraud and Identity Theft SchemeRead the Press Release
SACRAMENTO, Calif. — After a three–day trial, a jury today found Deshawn A. Ray, 42, of Vallejo, guilty of one count of conspiracy to commit bank fraud, two counts of bank fraud, and one count of aggravated identity theft, United States Attorney Benjamin B. Wagner announced. The trial was held before Chief United States District Judge Morrison C. England Jr.
According to evidence presented at trial, from March 2008 until July 2010, Ray and his primary co-conspirator Reginald L. Thomas, conducted what was described as a multi-state “account takeover” scheme that targeted high-value accounts at several banks. Members of the conspiracy used the personal information of high-value account holders to open a joint account in the names of the high-value account holders and a co-conspirator. The defendants also changed the contact information for the high-value accounts so that the actual account holders would not receive notice of account activity. The defendants then transferred funds from the high-value accounts to the joint accounts and then to individual accounts held by a member of the conspiracy. Members of the conspiracy withdrew the proceeds of the fraudulent transfers in cash, cashiers’ checks or wire transfers before the transfers were noticed by the banks and reversed.
This case is the product of an investigation by the United States Secret Service, the Pinellas County (Florida) Sheriff’s Office, and the Walnut Creek (California) Police Department. Assistant United States Attorneys Matthew G. Morris and Brian A. Fogerty are prosecuting the case.
After the verdict, Ray was taken into custody by the United States Marshals Service.
Ray is scheduled to be sentenced by Judge England on March 12, 2015. Ray faces a maximum statutory penalty of 30 years in prison and a $1 million fine on each of the bank fraud charges, and a mandatory two-year consecutive prison term for the conviction for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Co-defendant Damian Edgerson, 39, of Oakland, pleaded guilty to bank fraud and was sentenced to 18 months in prison. Reginald Thomas, 39, of Richmond, pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft and is scheduled to be sentenced on December 18, 2014. He faces a maximum statutory penalty of 30 years in prison, a $1 million fine, and a mandatory two-year consecutive sentence for aggravated identity theft. Tiffany Tung, 26, of Oakland pleaded guilty to accepting a bribe as a bank employee. Tung is scheduled for a status hearing on her sentencing on December 18, 2014. She faces a maximum statutory penalty of one year in prison and a $100,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Unlicensed Investment Advisor Sentenced to 64 Months in Ponzi SchemeRead the Press Release
A 37-year-old Brighton man was sentenced today in federal court to 64 months in prison for running a $3.8-million Ponzi scheme, United States Attorney Barbara L. McQuade announced.
Joining in the announcement was Paul M. Abbate, Special Agent in Charge of the Federal Bureau of Investigation.
U.S. District Judge Nancy G. Edmunds sentenced Sachin Uppal today, following his August guilty plea to wire fraud charges. According to court documents, Uppal ran the Jefferson Smith Trading Company LLC (“JSTCO”) from July 2007 through September 2013. Uppal, who was not a licensed investment advisor, marketed JSTCO to potential investors and solicited investor funds, describing it as a “hedge fund.” Uppal told investors that he was a “day trader,” who would use investor funds to buy and sell financial instruments within the same trading day, which he said would reduce risk to investors.
Several of Uppal’s victims were family friends. This phenomenon, known as ‘affinity fraud,’ often targets members of identifiable groups, such as a religious or ethnic communities or clubs. Judge Edmunds ordered Uppal to pay restitution to his victims in the amount of $3,867,187.
Uppal promised a return of 18 to 20 percent per year, with a minimum investment commitment of only 12 months. Once he secured the initial investment, Uppal emailed his victims false monthly “year-to-date investment summaries” to make them believe that their accounts were performing well, and to persuade them to invest additional funds. Sometimes, Uppal traded and lost funds during the relevant period. Other times, Uppal simply pocketed the money without conducting any trades at all. When investors asked to close their accounts and withdraw their investment funds, Uppal attempted to lull them with various excuses.
"Some people use guns to steal money. Other people use lies," McQuade said. "Investors should not be lulled into trusting an investment advisor just because they know him or because he is a fellow member of an organization to which they belong. Criminals take advantage of those relationships as cover to commit fraud."
“Mr. Uppal took advantage of trusting relationships with family, friends, and associates, breached their confidence, and stole their money,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “Criminals like this use every means of deceit available to further their selfish goals, and investors need to exercise great caution so as not to become victimized.”
Investors are encouraged to consult with the Financial Industry Regulatory Authority (FINRA) website (http://www.finra.org) and its BrokerCheck resource before investing.
The case was investigated by the FBI and prosecuted by Assistant United States Attorney Erin ShawU.S. Attorney Adds Resources to Combat Crime in Clarksburg AreaRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – In a continuing effort to bring enhanced law enforcement resources to the Clarksburg region, the U.S. Attorney’s Office for the Northern District of West Virginia recently welcomed a new federal prosecutor, United States Attorney William J. Ihlenfeld, II, announced today.
“We are excited to have Sarah Montoro join our office as an Assistant United States Attorney,” said Ihlenfeld. “She brings enthusiasm and experience to our team. She also has a particular passion and expertise in the area of domestic violence, having served on the Board of Directors of the Rape and Domestic Violence Information Center in Morgantown.”
“Hiring Sarah is just one component in a larger initiative to enhance law enforcement resources in the Clarksburg area,” noted Ihlenfeld. “We are actively pursuing additional resources to ensure safety and security in the region.” In September 2014, Harrison County, West Virginia was designated as a critical drug trafficking region as part of the Office of National Drug Control Policy’s High Intensity Drug Trafficking Areas (HIDTA) program. The HIDTA designation will bring significant federal resources to region, including additional support for the Greater Harrison County Drug and Violent Crime Task Force. In November 2014, Assistant Harrison County Prosecutor Shawn Adkins was designated as a Special Assistant United States Attorney.
Montoro graduated from West Virginia University with a Bachelor of Arts in English in 2003. She earned her JD in 2006 from the West Virginia University College of Law, where she served as Executive Research Editor for the West Virginia Law Review and President of the West Virginia Student Trial Lawyers Association. Prior to joining the United States Attorney's Office, Montoro served as an associate at Romano Law Office and Allan N. Karlin & Associates, both in Morgantown, West Virginia. She also served as a law clerk for Fourth Circuit Judge Robert B. King from August 2006 through August 2007.
Two Men Indicted for Illegal Firearms Possession in Incidents on Seattle’s Capitol HillRead the Press Release
Two men have been indicted for being felons in possession of firearms in two separate incidents in Seattle’s Capitol Hill neighborhood, announced Acting United States Attorney Annette L. Hayes. ROBEL SISAY GEBREMEDHIU, 31, and AWAD Y. AYNISHER, 30, both of Seattle were arrested in September and October 2014, as part of the Seattle Police Department’s emphasis patrols in response to community concerns about crime and safety. GEBREMEDHIU was arrested on September 27, 2014, after witnesses called 9-1-1 reporting a man running down Broadway with a gun. AYNISHER was arrested October 5, 2014, after a security guard alerted police to an impaired driver at a gas station on Broadway. AYNISHER had a loaded gun in his front seat and an Uzi type weapon in the trunk of his car. Both men are prohibited from possessing firearms because they each have prior federal felony convictions.
“Convicted felons armed with high powered firearms in busy city neighborhoods are a recipe for disaster,” said Acting U.S. Attorney Hayes. “I commend the Seattle Police Officers who worked quickly to protect the public and get these individuals off the streets safely.”
“I meet regularly with Capitol Hill residents and business owners and we’ve talked at length about their crime and quality of life issues,” said Seattle Police Chief Kathleen O’Toole. “These cases demonstrate that we’re listening carefully and working with our Federal partners to address their concerns.”
Both defendants recently served lengthy federal prison sentences and were on federal supervision at the time of their arrests. In the prior criminal cases, both defendants admitted distributing drugs as part of a gang known as the East African Posse (EAP). Both have been in federal custody for violating the terms of their court-ordered supervision and will be arraigned on these new indictments next week.
According to records filed in King County Superior Court, on September 27, 2014, two Seattle Police bike officers received a report of a man with a gun running south on Broadway just as various clubs and bars were emptying out for the night. The officers saw a man in clothes matching the suspect’s description in a parking lot, standing behind a truck. As the officers approached, GEBREMEDHIU dropped what was later identified as a loaded .40 caliber Glock firearm. GEBREMEDHIU was taken into custody for being a felon in possession of a firearm.
One week later, on October 5, 2014, police officers were monitoring the late night crowd at a gas station on Broadway when a security guard alerted them to a driver who had pulled into the parking lot in a reckless manner. The officers observed that the driver appeared to have difficulty standing. When the driver, AYNISHER, returned to his car, he backed up, hitting another car in the lot. Officers asked AYNISHER to get out of the car, screened him, and arrested him for driving under the influence. The car was impounded and officers saw in plain view a loaded semi-automatic 9mm handgun on the floor of the driver’s seat. The officers obtained a warrant, searched the car and found a second firearm – a Cobray M-11 9mm semi-automatic (Uzi type) pistol -- in the trunk.
The statutory penalty for being a felon in possession of a firearm is ten years in prison. Additional penalties are available to the court for those on supervised release at the time of the new charge.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Seattle Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). The case is being prosecuted by Assistant United States Attorneys Todd Greenberg and Andrew Friedman.
Two Convicted for Role in Manufacturing MethamphetamineRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistELKINS, WEST VIRGINIA – Two West Virginia residents were convicted in federal court for their role in producing methamphetamine, United States Attorney William J. Ihlenfeld, II, announced today.
Krystal Eileen Sisler, 27, of Bartow, West Virginia, pled guilty to one count of “Possession of Pseudoephedrine to be used in the Manufacture of Methamphetamine.” She faces up to 20 years in prison and fine of up to $250,000.00. An investigation by the Mountain Region Drug and Violent Crime Task Force, the United States Forest Service, the Pocahontas County Sheriff's Office, and the West Virginia State Police revealed that in July 2014, Sisler purchased medications containing pseudoephedrine to be used in manufacturing methamphetamine.
Jamie Nicole Chidester, 26, of Buckhannon, West Virginia, pled guilty to one count of “Possession of Material used in the Manufacturing of Methamphetamine – Aiding and Abetting.” She faces up to ten years in prison and fine of up to $250,000.00. During an investigation by the Randolph and Upshur County Sheriff’s Offices and the Buckhannon Police Department, Chidester was discovered in March 2013 in possession of various materials used in the production of methamphetamine, including coffee filters, lithium batteries, airline tubing air pup, instant cold packs, started fluid, lighter fluid salt, drain cleaner, plastic bottles, a pill crusher, and glass and plastic bottles.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Steven Warner is prosecuting the cases on behalf of the government.
U.S. Magistrate Judge John S. Kaull presided.
Two Chinese Nationals Sentenced for Trafficking Counterfeit Cell Phone CasesRead the Press Release
Boston – Two Chinese nationals, living in Massachusetts, were sentenced today in federal court for importing and reselling counterfeit cases for cell phones.
U.S. District Court Judge F. Dennis Saylor, IV, sentenced Zexiong Chen, 28, to 18 months in prison, one year of supervised release, a fine of $6,000 and restitution in the amount of $4,820. Haotian Chen, 26, was sentenced to time served which was one day in prison, one year of supervised release, a fine of $4,000 and restitution in the amount of $4,829. In September 2014, the defendants pleaded guilty to trafficking in counterfeit goods. In February 2014, Zexiong Chen was arrested at JFK International Airport as he prepared to board a plane to China. He has been in custody since then. Haotian Chen was also arrested in February 2014 and was released by the Court on conditions.
In February 2013, the defendants incorporated Max Wireless Group, Inc. as a vehicle for importing and reselling cell phone cases, many of which were counterfeit. Through Max Wireless, the defendants imported counterfeit cell phone cases from China, sold a small percentage of them through their Wakefield store, and sold the vast majority of them to individuals and companies who resold them at retail locations. Many of these retail locations were kiosks in shopping malls, some of which were in Massachusetts.
On 12 occasions from November 2012 through August 2013, U.S. Customs and Border Patrol officials inspected shipments the defendants imported from China to the United States and determined that these shipments contained counterfeit items. These 12 seizures included more than 10,000 counterfeit cell phone cases, bearing marks of manufacturers including: OtterBox, Speck, Kate Spade, Hello Kitty, Ferrari and LifeProof. On Sept. 4, 2013, federal agents searched the Max Wireless store and found more than 2,500 counterfeit cell phone cases and accessories.
The total of the retail price for the authentic versions of all of the products seized totaled more than $350,000. The defendants paid far less for the counterfeit cases and typically resold the cases for substantially less than the suggested retail price.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Adam Bookbinder, Chief of Ortiz’s Cyber Crime Unit.