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11 December 2014
Eleven People Charged in Takedown of Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. – Federal, state and local law enforcement authorities arrested eight people this morning in connection with a ring that allegedly trafficked heroin, powder cocaine and crack cocaine in the Atlantic City area, U.S. Attorney Paul J. Fishman announced.
In pre-dawn raids, agents and officers of the FBI, Drug Enforcement Administration, the Atlantic County Prosecutor’s Office, N.J. State Police and Atlantic City Police Department arrested eight people, seven of whom were charged by indictment with drug trafficking conspiracy; one of those defendants, Toye Tutis, is also charged with one count of money laundering along with Jazmin S. Vega, who is charged only with a single count of money laundering.
A ninth defendant is already in custody on other charges in Pennsylvania and two more defendants are being sought in California.
The defendants arrested in New Jersey today are scheduled to make their initial court appearance this afternoon before U.S. Magistrate Judge Ann Marie Donio in Camden federal court.
According to documents filed in this case and statements made in court:
The defendants are allegedly members of a drug trafficking organization that dealt in large quantities of heroin, powder cocaine, and crack cocaine in and around Atlantic City. All but one of the defendants (see chart below) are charged with a single count of conspiracy to distribute more than five kilograms of cocaine, more than 280 grams of crack cocaine, and more than one kilogram of heroin.
The conspiracy count carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. The count of money laundering carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford; the DEA’s Newark Division, under the direction of Special Agent in Charge Carl J. Kotowski; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; and the Atlantic City Police Department, under the direction of Police Chief Henry Wright, with the investigation leading to today’s arrests.
He also thanked the N.J. State Police; the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco and Firearms; U.S. Immigration and Customs Enforcement (ICE)-Homeland Security Investigation (HSI); U.S. Postal Inspection Service; Cumberland County Sheriff’s Office and the Ventnor, Northfield and Millville police departments for their assistance.
The government is represented by Assistant U.S. Attorney Diana V. Carrig of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the indictment are merely accusations and the defendants are considered innocent unless and until proven guilty.
DEFENDANTS
Name
Age
Residence
42
Pleasantville, New Jersey
Kareem A. Taylor
39
Atlantic City, New Jersey
Ivan Joel Cuellar-Naranjo*
28
Los Angeles, California
Francisco Alberto Rascon-Muracami
21
Lancaster County Prison, Pennsylvania
Phillip C. Horton*
49
Inglewood, California
Tozine N. Tiller
40
Absecon, New Jersey
Talib N. Tiller
32
Pleasantville
Kabaka Atiba
43
Atlantic City
Ronald D. Byrd
49
Pleasantville
John Wellman
39
Atlantic City
Jazmin S. Vega
40
Pleasantville
*Not in custody
14-435
Tutis, Toye et al., Indictment
East Liverpool Pair Face Crack Cocaine ChargesRead the Press Release
A federal grand jury returned a one-count indictment charging John N. Lockett III, age 38, and Kaylee Marie Lockett, age 25, both of East Liverpool, Ohio, with conspiracy to possess with intent to distribute and distribution of at least 280 grams of cocaine base, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that beginning at least as early as November 2013 and continuing through December 2013, John N. Lockett III and Kaylee Marie Locket conspired to possess and distribute cocaine base.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Linda H. Barr.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
December Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 11 indictments charging 15 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Antonio Bertucci, age 23, of Macy, Nebraska, is charged in a three-count Indictment. Counts I and II of the Indictment charge the defendant with domestic assault by a habitual offender on or about October 13, 2014 and on or about October 2, 2014. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count. Count III of the Indictment charges Bertucci with interstate domestic violence on or about August 2, 2014. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment
* Angel G. Casarrubias, 21, of Lincoln, is charged in a two-count Indictment. Counts I and II of the Indictment charge the defendant with distribution of 50 grams or more of methamphetamine on or about November 4, 2014 and on or about November 19, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release and a $100 special assessment for each count.
* Andrew Jose Espinoza, age 43, and Nicole Renee Contreras, a/k/a Nicole Renee Svoboda, age 48, are charged in a two-count Indictment. Count I of the Indictment charges the defendants with conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture of methamphetamine between on or about January 1, 2010, to on or about October 16, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release and a $100 special assessment. Count II of the Indictment charges Espinoza and Contreras with possession with intent to distribute 50 grams or more of a mixture of methamphetamine on or about October 16, 2014. The maximum possible penalty if convicted if 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in the indictment should be forfeited to the United States.
* Juan C. Garcia Hernandez, age 28, of Omaha, is charged with illegal reentry into the United States on or about November 18, 2014, following deportation as a felon. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Dale Delmar Hess, age 61, of Lincoln, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with receipt of child pornography from on or about September 11, 2010, and continuing to on or about July 22, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment. Count II of the Indictment charges Hess with possession of child pornography on or about July 23, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment. The indictment also alleges property used or intended to be used as part of this violation should be forfeited to the United States.
* Kevin M. Lee, age 37, is charged in a two-count indictment. Count I of the Indictment charges the defendant with bank robbery of American National Bank, 1412 Harney Street, Omaha, Nebraska, on or about November 17, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Lee with bank robbery of U.S. Bank, 222 S. 72nd Street, Omaha, Nebraska, on or about November 18, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment.
* Felizardo Martines-Reyes, age 36, of Omaha, is charged with illegal reentry into the United States on or about November 21, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Myron Plummer, age 51, of Mentor, Ohio, is charged in a two-count Indictment. Count I of the Indictment alleges that on or about August 6, 2014, the defendant falsely represented a Social Security account number as belonging to him for the purpose of obtaining a benefit to which he was not entitled. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Plummer with using a means of identification of another person during and in relation to a felony violation on or about August 6, 2014. The maximum possible penalty if convicted is mandatory 2 year imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Shane Seizys, age 22, Emmanuel Chaplain, age 24, Thomas Jones-Ross, age 22, and Dilang Dat, age 21, all of Omaha, Nebraska are charged with a number of crimes arising out of a series of robberies that occurred in Omaha this summer. On June 16, 2014, Subway at 10814 Cottonwood Lane and Kentucky Fried Chicken located at 4385 Dodge Street were robbed. Seizys is charged with robbing both of those locations and is additionally charged with brandishing a firearm during the Kentucky Fried Chicken robbery. On June 19, 2014, Jiffy Lube at 5819 Maple Street, Jensen Tire and Auto at 4901 L Street and Jiffy Lube at 1221 S. 120th Street were all robbed. Seizys and Chaplain are both charged with each of those robberies. Additionally, they are each charged with brandishing a firearm during the Jensen Tire and Auto and 120th Street Jiffy Lube robberies. On June 23, 2014, Subway at 5005 Center Street and O’Reilly Auto Parts at 3620 North 72nd Street were robbed. Seizys and Chaplain are charged with robbing and brandishing a firearm at Subway and also charged with robbing O’Reilly Auto Parts. The Kum & Go located at 1010 South 154th Street was also robbed on June 23, 2014. Seizys, Chaplain and Jones-Ross are each charged with robbing that store and brandishing a firearm during that robbery. On July 16, 2014, Game Stop located at 9959 Redick Circle and Kentucky Fried Chicken located at 7601 North 30th Street were robbed. Seizys, Chaplain and Dat are each charged with both of those robberies. Seizys, Chaplain and Jones-Ross are also each charged with one count of felon in possession of a firearm. The maximum possible penalty on each robbery is 20 years imprisonment. The brandishing of a firearm carries a minimum term of 7 years to life imprisonment in addition to each robbery. Each additional brandishing conviction carries a minimum term of 25 years imprisonment to life. There is a maximum 10 years imprisonment for a felon in possession of a firearm conviction. Each robbery and firearm charge carries a $250,000 fine, 3 year term of supervised release and $100 special assessment.
* Alberto Tristan-Castillo, age 45, of Omaha, is charged with illegal reentry into the United States on or about November 19, 2014, following deportation as a felon. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Thomas White, Jr., age 31, of Winnebago, is charged with assaulting, resisting, and interfering with a federal officer on or about October 17, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.Connecticut Man Charged in Manhattan Federal Court with Misappropriation of over $1 Million from Investors in Commodity PoolRead 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”), today announced the arrest of RYAN TOMAZIN, a founder and managing partner of R2 Capital Group LLC (“R2 Capital”), in connection with the unsealing of a two-count Indictment charging TOMAZIN with defrauding investors and misappropriating investment funds. Beginning in late 2009, TOMAZIN solicited over one million dollars from investors for investment in a commodity pool. From late 2009 through December 2014, TOMAZIN defrauded investors by disseminating, or causing others to disseminate, documents containing false representations regarding how assets in the commodity pool would be managed, and by falsely informing investors that their investments were increasing in value when, in fact, their investments had declined in value precipitously. As a further part of the scheme, TOMAZIN and other principals at R2 Capital caused over $850,000 of investors’ funds to be withdrawn from bank accounts associated with the commodity pool, and directed to bank accounts held in TOMAZIN’s and other principals’ own names or those of their respective holding companies for no legitimate purpose.
TOMAZIN was arrested by the FBI this morning at his residence in Connecticut, and will be presented in federal court in the Southern District of New York this afternoon.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Ryan Tomazin misled investors about the commodity pool he ran, and then misappropriated their money. With today’s arrest, he will now be brought to justice for this fraud.”
FBI Assistant Director-in-Charge George Venizelos said: “Once again we see greed and unethical behavior by those we trust with our investments. As alleged in the indictment, Mr. TOMAZIN defrauded investors, misappropriated their investment funds for his own personal benefit and then made false representations to cover his unethical scheme. Today’s arrest is another example of our continued commitment to work with our partners to expose and prosecute such criminal activity.”
According to the allegations in the Indictment unsealed today in Manhattan federal court:
R2 Capital began operations as an investment firm in 2008. In late 2009, R2 Capital created a commodity pool, R2 Capital Partners I L.P. (the “Commercial Pool”) and began to solicit investors, eventually raising approximately $2.2 million. In early 2010, R2 Capital engaged in trading on behalf of the Commercial Pool, but experienced significant losses and ceased all trading activity in or about July 2011. By August 2011, there was less than $5,000 remaining in bank accounts associated with the Commercial Pool.
In early 2010, TOMAZIN solicited a potential investor in the Commercial Pool (“Investment Fund-1”) and provided Investment Fund-1 with documentation that stated, among other things, that R2 Capital would receive a management fee limited to 50% of the profits earned by the Commercial Pool. Investment Fund-1 invested over $1 million in the Commercial Pool. From June 2010 to July 2011, the Commercial Pool experienced significant net losses. In July 2011, all trading activity in the Commercial Pool ceased. Nonetheless, between August 2011 and March 2013, TOMAZIN caused false “Trading Statements” to be sent to Investment Fund-1 reflecting false purported monthly trading profits and inaccurate trade balances. Furthermore, contrary to prior representations that R2 Capital’s management fee would be limited to 50% of profits earned, TOMAZIN and other principals at R2 Capital caused approximately $850,000 to be withdrawn from bank accounts associated with the Commercial Pool for their own personal benefit.
TOMAZIN, 39, of Stamford, Connecticut, is charged in the Indictment with securities fraud (Count One) and commodities fraud (Count Two). The securities fraud charge carries a maximum term of 20 years in prison and the commodities fraud charge carries a maximum term of 10 years in prison. The statutory maximum 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.
In a separate action, the United States Commodities Futures Trading Commission (“CFTC”) previously sued TOMAZIN, two others, and R2 Capital, in an action filed in United States District Court for the District of Colorado.
Mr. Bharara praised the investigative work of the FBI. He also thanked the CFTC for its assistance.
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. Attorneys Harry Chernoff and Aimee Hector are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Ryan Tomazin Indictment
Columbus Pharmacist Charged with Health Care FraudRead the Press Release
COLUMBUS, OHIO – A federal grand jury has charged Maria Mascio, 59, of Columbus, Ohio, with 46 counts related to health care fraud in an indictment returned today in Columbus, Ohio.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, John A. Barrios, Acting Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Office, Lamont Pugh, Special Agent in Charge, Department of Health and Human Services Office of Inspector General, Antoinette V. Henry, Special Agent in Charge, U.S. Food and Drug Administration (FDA), Metro Washington Field Office, Ohio Attorney General Mike DeWine and Steven W. Schierholt, Executive Director, Ohio State Board of Pharmacy announced the indictment returned today.
According to court records, Mascio was a licensed pharmacist in the State of Ohio and owner of Family Medical Pharmacy and Vision Systems, both located in Columbus, Ohio. Mascio was charged with one count of conspiracy to commit health care fraud, one count of health care fraud scheme, 37 counts of health care false statements, one count of conspiracy to defraud the United States, four counts of aggravated identity theft and one count of tampering with a witness.
The indictment alleges that from on or about January 1, 2003 and continuing through on or about January 31, 2013, Mascio schemed to defraud Medicare, Ohio Medicaid, Ohio Bureau of Workers’ Compensation and private insurers. She allegedly billed for sample drugs that could not be legally sold and also billed for medications that had not been dispensed. It is alleged that Mascio also knowingly and unlawfully used the identification of another person to bill for medication.
Conspiracy to commit health care fraud is a crime punishable by up to 10 years in prison. Health care fraud scheme is a crime punishable by up to 10 years in prison. Each count of health care false statements is punishable by up to 5 years imprisonment. Conspiracy to defraud the United States is punishable by up to 5 years in prison. Each count of aggravated identity theft includes a mandatory sentence of 2 years imprisonment and tampering with a witness is punishable by up to 20 years in prison.
U.S. Attorney Stewart commended the investigation of this case by the FBI, Health and Human Services Office of the Inspector General, Ohio Medicaid Fraud Control Unit, Ohio State Board of Pharmacy and FDA, and Assistant U.S. Attorney Ken Affeldt, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Columbus Man Sentenced for Role in Cocaine Distribution RingRead the Press Release
COLUMBUS, OHIO – Stephen A. Cagle, 46, of Columbus, Ohio, was sentenced in U.S. District Court to 36 months in prison for distributing cocaine and money laundering.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Robert Corso, Special Agent in Charge, Drug Enforcement Administration (DEA), Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Columbus Police Chief Kim Jacobs and Michael Boxler, Special Agent in Charge, Columbus Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced the sentence handed down today by U.S. District Judge Gregory L. Frost.
According to court documents, on or about January 1, 2010 through September 21, 2011, Cagle, along with several others, was part of a large scale narcotics organization involved in importing, manufacturing and distributing cocaine throughout Central and Northern Ohio, Penn. and Texas.
Specifically, Cagle was responsible for distributing multiple kilograms of cocaine that was being transported into Ohio from Texas. The defendant was also involved in operating an unlicensed money transmitting business, often transporting several hundreds of thousands of dollars from Ohio to Texas.
While executing a search warrant at Cagle’s residence on September 21, 2011, investigators discovered more than 5 kilograms of cocaine, several firearms, more than $142,000 in cash and several vehicles.Cagle pleaded guilty on May 21, 2014 to conspiracy to distribute a controlled substance and money laundering.
He was ordered to forfeit $142,020 in cash and $10,000 in lieu of a vehicle seized on his property, as well as at least 13 firearms.
“All financial transactions leave a trail and we have the unique expertise to follow those leads,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Not only is a criminal going to jail for his crimes, but the government has seized a significant portion of the illegal proceeds through asset forfeiture.”
U.S. Attorney Stewart commended the cooperative investigation by the DEA, IRS-Criminal Investigation, Columbus Division of Police, and ATF, as well as Assistant United States Attorney Kenneth F. Affeldt, who is representing the United States in this case.Columbus Man Pleads Guilty to Violating the Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Jose Valladolid, 44, of Columbus, N.M., pleaded guilty today in federal court in Las Cruces, N.M., to being a felon in possession of firearms under a plea agreement with the U.S. Attorney’s Office.
Valladolid was arrested on Aug. 6, 2014, at the Columbus International Port of Entry in Luna County, N.M., for being a felon in possession of firearms, and attempting to export those firearms out of the United States. U.S. Customs and Border Protection Officers at the Columbus Port of Entry together with U.S. Border Patrol Agents assisting them with vehicle inspections arrested Valladolid after they found two firearms in his vehicle. At the time, Valladolid was prohibited from possessing firearms because he previously had been convicted of a marijuana trafficking crime.
Valladolid was indicted in Nov. 2014, on a two-count indictment charging him with being a felon in possession of a firearm, and fraudulently attempting to smuggle two rifles out of the United States.
During today’s proceedings, Valladolid pled guilty to Count 1 of the indictment and admitted possessing the firearms discovered in his vehicle on Aug. 6, 2014. He also admitted that he was prohibited from possessing the firearms because he was a convicted felon.
Valladolid has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Valladolid faces a statutory maximum penalty of ten years in federal prison.
This case was investigated by the Deming office of Homeland Security Investigations, U.S. Border Patrol, U.S. Customs and Border Protection, the Las Cruces office of the Bureau of Alcohol, Tobacco and Firearms and Explosives, and the Las Cruces office of the DEA. Assistant U.S. Attorney Brock E. Taylor of the Las Cruces branch office of the U.S. Attorney’s Office is prosecuting this case.
Charleston man sentenced to 17 years for illegal possession of a firearmRead the Press Release
Charleston, W.Va. – A Charleston, West Virginia felon who illegally possessed a firearm was sentenced today to 17 years in federal prison, U.S. Attorney Booth Goodwin announced. On August 27, 2014, a jury found Diarra Jermaine Boddy, 44, guilty of being a felon in possession of a firearm. Today’s sentence was handed down by United States District Court Judge John T. Copenhaver, Jr.
On September 10, 2013, Boddy was stopped by a Charleston Police Department officer on Veazey Street in Charleston, after he threw a loaded .44 caliber revolver from the care he was driving. Boddy had previously been convicted of several felonies including third offense domestic battery and three prior drug offenses. Boddy was sentenced as an Armed Career Criminal which provided for a mandatory minimum sentence of 15 years.
The investigation was conducted by the Charleston Police Department. Assistant United States AttorneysJoshua Hanks and Haley Bunn handled the prosecution.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
California Woman Sentenced to Prison for Credit Card SchemeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jocelyn Wilson, age 22, formerly of Carmichael, California, was sentenced yesterday by United States District Court Judge Robert D. Mariani to serve 33 months in prison on the charges of access device fraud and conspiracy to defraud the United States.
According to United States Attorney Peter Smith, Wilson along with co-defendant Francis Nevarez used a stolen credit card and a fraudulent Texas driver’s license to obtain cash advances, goods and services from financial institutions and businesses throughout Pennsylvania in 2013.
Nevarez was sentenced by Judge Mariani on November 21, 2014 to serve 36 months imprisonment and ordered to make restitution in the amount of $206,296.
The investigation was conducted by the United States Secret Service. The case was prosecuted by Assistant United States Attorney Michelle Olshefski.
California Operator of myRedBook.com Website Pleads Guilty to Facilitating ProstitutionRead the Press Release
A California man pleaded guilty today in connection with his operation of the myRedBook.com website to facilitate prostitution. This represents the first federal conviction of a website operator for facilitation of prostitution.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Melinda Haag of the Northern District of California, Special Agent in Charge David J. Johnson of the FBI’s San Francisco Field Office and Special Agent in Charge José M. Martinez of the Internal Revenue Service-Criminal Investigation’s (IRS-CI) San Francisco Office made the announcement.
Eric Omuro, also known as “Red,” 53, of Mountain View, California, pleaded guilty today before U.S. District Judge William H. Orrick of the Northern District of California to using a facility of interstate commerce with the intent to facilitate prostitution. His co-defendant, Annemarie Lanoce, 40, of Rocklin, California, pleaded guilty on Nov. 20, 2014, for assisting Omuro with the operation of the myRedBook.com website. Omuro’s sentencing hearing is set for March 26, 2015, and Lanoce’s sentencing hearing is set for March 19, 2015.
As part of the plea agreement, Omuro admitted that from April 2010 until June 25, 2014, he owned, managed, and operated a website known as myRedBook.com, which was previously known as sfredbook.com. Omuro admitted that the website hosted advertisements posted by prostitutes containing explicit photos, graphic descriptions of sexual services offered, and rates for the sexual services. The advertisements were searchable by geographic location, including cities throughout California, other U.S. states, and Canada.
Omuro admitted that members of his website and prostitutes typically used acronyms for sex acts, which were defined in graphic detail in the website’s “Terms and Acronyms” section. While prostitutes could post advertisements for free, myRedBook.com offered additional options for a fee. For example, prostitutes could pay a fee to have their advertisement featured more prominently on the website. Similarly, customers could access myRedBook.com for free. If a customer purchased a membership, however, the customer obtained early and enhanced access to prostitute reviews, enhanced prostitute review search options, and access to additional VIP forums, among other things.
As part of the plea agreement, Omuro agreed to the forfeiture of the domain names sfRedBook.com and myRedBook.com and more than $1.28 million in cash and property as proceeds and other property involved in his unlawful activity.
Omuro was arrested on June 25, 2014, on a warrant issued following his indictment.
This case was investigated by the FBI’s San Francisco Field Office, the IRS-CI, and the Oakland Police Department. The case is being prosecuted by the Criminal Division’s Child Exploitation and Obscenity Section and U.S. Attorney’s Office for the Northern District of California. The Criminal Division’s Office of International Affairs provided assistance to the prosecution.
Buffalo Man Sentenced for Violating Supervised ReleaseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Terry Finn, 51, of Buffalo, NY, who was convicted of violating a condition of his supervised release, was sentenced to nine months in prison by U.S. District Court Judge Richard J. Arcara.
Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that on August 27, 2008, the defendant was sentenced by Judge Arcara to 52 months in prison and five years supervised release persuasion of a minor to travel in interstate commerce to engage in sexual activity. Finn met a 16 year old online and persuaded her to travel from Vermont to Brocton, NY to meet him and engage in sexual activity. As a condition of supervised release, the defendant was ordered to enroll, attend and participate in mental health intervention specifically designed for the treatment of sexual offenders as approved by U.S. Probation.
The defendant began serving the term of supervised release on February 7, 2012. In March of 2014, Finn was referred to Mid-Erie Counseling for sex offender treatment. On September 4, 2014, the defendant was terminated from Mid-Erie’s program for failing to inform the treatment team or his probation officer that he was engaged in a romantic relationship with a woman who had a five year old child. Specifically, Finn failed to disclose this information during a session on September 3, 2014, when he attended a group therapy session at Mid-Erie.
The sentencing is the culmination of an investigation on the part of United States Probation Service, under the direction of Chief US Probation Officer Anthony M. San Giacomo.
Buckhannon, WV Man Convicted of Witness TamperingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistELKINS, WEST VIRGINIA – Tobias Lynn Bennett, 41, of Buckhannon, West Virginia, was convicted in federal court on witness tampering charges, United States Attorney William J. Ihlenfeld, II announced today.
An investigation by the West Virginia State Police revealed that, while incarcerated at the Tygart Valley Regional Jail in Belington, West Virginia, Bennett discouraged two potential witnesses from testifying at a fellow inmate’s sentencing hearing.
Bennett pled guilty to one count of “Witness Tampering – Aiding and Abetting.” He faces up to 20 years in prison and fine of up to $250,000.00. 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 Andrew Cogar is prosecuting the case on behalf of the government.
U.S. Magistrate Judge John S. Kaull presided.
Bradenton Man Indicted for Federal Arson and Firearm OffensesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Henry Blain Howard (47, Bradenton) with arson, possessing an unregistered destructive device, possessing a firearm in furtherance of a crime of violence, and possessing a firearm and ammunition as a convicted felon. If convicted on all counts, Howard faces a mandatory minimum term of 50 years in federal prison.
According to the indictment, on June 20, 2014, Howard knowingly possessed a destructive device that had not been registered to him in the National Firearms Registration and Transfer Record. Further, he used the device in furtherance of the arson of two vehicles.
Additionally, on October 7, 2014, during a search of Howard’s home, investigators recovered two rifles and several rounds of ammunition. At the time of the search, Howard was a convicted felon and, therefore, was prohibited from possessing firearms or ammunition under federal law.
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Manatee County Sheriff’s Office, and the Florida State Fire Marshal’s Office. It will be prosecuted by Assistant United States Attorney Carlton C. Gammons.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
Bourbonnais Tax Preparer Convicted of Filing False Income Tax ReturnsRead the Press Release
Peoria, Ill. – Sentencing is scheduled on April 10, 2015, for a Bourbonnais, Ill., man convicted yesterday of three counts of filing a false tax return and nine counts of aiding and abetting the preparation of false tax returns. A jury deliberated for approximately five hours on Dec. 10, before returning 12 guilty verdicts against Robert J. DeAngelo, 63.
From 2007 to 2010, DeAngelo provided tax services from his home office, on St. Pauls Drive, Bourbonnais, that included the preparation and filing of tax returns for hundreds of clients. During the trial, which began on Monday, Dec. 8, the government presented evidence to establish that for the 2008, 2009, and 2010 tax years, DeAngelo falsely underreported his tax business’s gross receipts and inflated its expenses. Despite receiving tens of thousands of dollars in income during this time, DeAngelo paid no federal income tax for those years, and in fact, claimed an earned income credit. For tax years 2008, 2009, and 2010, DeAngelo failed to pay more than $30,000 in federal income taxes that were due and owing. During this time period, DeAngelo also created false employee business expense deductions, namely unreimbursed business mileage, for his tax return clients, without their knowledge. The false income tax returns provided larger refunds for DeAngelo’s clients and resulted in an overall tax loss of more than $50,000.
Following the jury’s return of the guilty verdicts, U.S. District Judge Michael M. Mihm allowed DeAngelo to remain on release under conditions of bond pending sentencing. Judge Mihm scheduled sentencing for DeAngelo on all charges for April 10, 2015.The maximum statutory penalty for each count of filing a false tax return and aiding and abetting the preparation of a false tax return is three years in prison, a fine of up to $100,000, plus the costs of prosecution.
The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller. The charges are the result of an investigation by Internal Revenue Service Criminal Investigation.
Alleged Gang Members and Associates Indicted in Cross-Country Sex Trafficking ConspiracyRead the Press Release
Read the indictment - Click HERE Presentation slides - Click HERESAN DIEGO – Twenty-two alleged gang members and associates are charged in a federal grand jury indictment with participating in a racketeering conspiracy involving the cross-country sex trafficking of underage girls, including many who were recruited from East County middle and high schools.
Early this morning detectives and agents from the San Diego County Sheriff’s Department, Homeland Security Investigations and the FBI, with assistance from other agencies, made 15 arrests and served 11 search warrants here and in Hemet, California; Tucson, Arizona, and Austin, Texas. Just one defendant remained at large at midday; seven were already in state custody. Some of the local defendants are scheduled to make their first court appearances tomorrow at 10:30 a.m. before U.S. Magistrate Judge Ruben Brooks.
The indictment, unsealed today, alleges that the defendants are associated with a relatively new gang formed in 2008 called “Tycoons,” which, until this morning, operated a nationwide prostitution enterprise primarily from its base in Lemon Grove and Spring Valley.
According to the indictment and other court documents, the enterprise was also involved in other crimes such as attempted murder, assaults, drug trafficking, robberies, residential and commercial burglaries, and beatings, intimidation and threats of violence against female victims, witnesses in criminal cases and members of the community.
Over the course of the two-year investigation, law enforcement identified approximately 100 girls and young women - as young as 12 years old, up to the mid-twenties - who were manipulated with promises of a lavish lifestyle or were forced through threats or actual violence to work as prostitutes for the enterprise, according to a search warrant.
Many of them were recruited on school campuses in East County by pimps and experienced, high-ranking prostitutes, the warrant said. During the course of the conspiracy, the girls and women were transported from San Diego County to customers in California and beyond – to Texas, Arizona, Kansas, Michigan, Nevada and elsewhere, the indictment said.
The defendants allegedly used a number of methods to manipulate the recruits, including false promises of a luxurious lifestyle, intimidation, and actual or threatened violence. Court records indicate that the alleged pimps regularly furnished drugs and alcohol to lower the recruited prostitute’s inhibitions and increase her productivity.
“Victims of sex trafficking are young, just getting started in life,” said U.S. Attorney Laura Duffy. “They have hopes and dreams of being loved and having beautiful lives ahead of them. Gang members are exploiting these dreams and stealing the souls of children. They are crushing them with false promises that lead to physical and emotional abuse and sexual slavery.”
The ranks of “Tycoons” are mostly made up of documented gang members from gangs all over the county, including the West Coast Crips, Neighborhood Crips, Lincoln Park, Skyline Piru (Eastside Piru), O’Farrell Park, 5/9 Brims, Emerald Hills and Linda Vista Crips. These gang members have a sort of dual membership in Tycoons. Within Tycoons, there are cliques known as PGF, for Playgirl Fantasy; Tycoon/Additup; and BYB, or Break Your Bitch.
According to court documents, members of Tycoons are akin to a crime family, where all members work together committing various crimes for the purpose of making money. The indictment alleges that the defendants took on different responsibilities within the criminal enterprise. Some managed prostitutes and transported them all over the country. Some forcefully coerced the girls and young women into prostitution and maintained their obedience and loyalty through acts of violence. Some handled the money. Some placed advertisements to generate business or booked motel rooms in which acts of prostitution took place; and others distributed drugs and committed other crimes.
For that reason, the defendants are charged with racketeering conspiracy—the statute traditionally used for organized-crime syndicates and mobsters. But as criminal street gangs such as these join forces and become more sophisticated and prolific in their illicit business pursuits, this statute is an effective tool to address all aspects of the criminal conduct.
This is the third time the U.S. attorney’s office here has used the racketeering statute to charge large numbers of gang members with operating a criminal enterprise that included drugs, human trafficking, and violence. In the first case, 39 Oceanside gang members and associates were charged with racketeering, and, to date, 35 have pleaded guilty. The second involved gangs in North Park; that case is pending, with three guilty pleas so far.
The investigation began as a result of information provided by members of the East County community who saw troubling signs and reported them. Duffy said she is encouraged that community members came together to address this problem.
“They did not look the other way,” Duffy said. “They saw signs of trouble, and they reported it. As a result, girls and young women exploited in this case have been extended a path from misery to safety, and we have started on a path to end this criminal enterprise.”
“This investigation was initiated through the vigilance of parents and school resource officers," commented Sheriff Bill Gore. “Local, state, and federal law enforcement will always collaborate and bring to bear all resources available, when the safety of our youth is at stake. I'm very proud of the work done today, and during the entire course of this matter.”
“This investigation pulls back the curtain on a growing threat involving sexual exploitation occurring in plain sight,” said Joe Garcia, interim special agent in charge for HSI in San Diego. “As part of the Department of Homeland Security’s Blue Campaign, HSI agents are committed to combating human trafficking in collaboration with our law enforcement partners. In doing so, we need the public’s assistance in reporting suspicious activity, which is even more critical when the targets involve our local area teenagers.”
“Exploiting and harming America's children through sex trafficking is a serious crime with detrimental effects to the victims and our communities,” said FBI Special Agent in Charge, Eric S. Birnbaum. “The FBI will continue to collaborate with our law enforcement partners in cases like this and our Operation Cross Country initiative where we have rescued over 3,600 children from the grips of sex traffickers and hold them accountable.”
DEFENDANTS Case Number: 14cr33537-BAS James Terelle King Age: 23 Michael Dean Richardson Age: 21 Andrew Damon Richardson Age: 22 Brian Keith Scott Age: 22 Alondre Shamil Dickerson Age: 20 Anthony Robert Dennison Age: 22 Keyon Renta Gill Age: 30 Donavyn Keith Dove Age: 21 Ryan Mcintoch Izumi Age: 22 William Henry Mitchell Age: 23 Jordan Renee Mitchell Age: 21 David Michael Stokes Age: 21 Christian Darwin Wilcox Age: 21 Marquis Dominique Davis Age: 21 Cortes Tizzaro Prater Age: 23 Emmanuel Gumataotao Farol Age: 20 Donald Mickey Stokes Age: 21 *Wiley Junius Greeno Age: 23 Deija Renee Lamb Age: 19 Joseph Benjamin Taylor Age: 21 Frank Gibson III Age: 20 Christal Marie Torres Age: 24 *fugitive CHARGESConspiracy to Commit RICO in violation of Title 18, U.S.C. 1962(d); Maximum Penalties: Life in prison, $250,000 fine, up to life of supervised release.
INVESTIGATING AGENCIESSan Diego County Sheriff’s Department
Immigration and Customs Enforcement, Homeland Security Investigations
Federal Bureau of Investigation*An indictment or complaint itself is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Alien Sentenced for Illegal Re-entry near PlattsburghRead the Press Release
Had Been Previously Removed Three Times
ALBANY, NEW YORK – Esequiel Perez-Lopez, 34 years old of Mexico, was sentenced today to serve 11 months in prison, followed by two years of supervised release by United States District Court Judge Glenn T. Suddaby announced United States Attorney Richard S. Hartunian and Patrol Agent In Charge Norman Lague, Champlain Border Patrol. In August, Perez-Lopez pled guilty to illegally reentering the United States after he had previously been removed, a felony under federal law. Following the completion of the term of his imprisonment, the Department of Homeland Security will process Perez-Lopez for removal from the United States to Mexico.
In August 2014, Perez-Lopez was arrested by Border Patrol Agents in a restaurant parking lot in Plattsburgh, New York. Perez-Lopez had been previously removed to Mexico three times, most recently in November 2012 after his conviction in the District of New Hampshire for illegally entering the United States after removal.
The case was investigated by the United States Border Patrol, Champlain, NY and prosecuted by Assistant United States Attorney Edward P. Grogan.
Alien Sentenced for Illegal Re-entry in HogansbergRead the Press Release
Had Been Removed in June 2014
ALBANY, NEW YORK – Elyn Francisco Figuereo-Minyette, 27 years old and a citizen of Spain, was sentenced today to term of “time served” (45 days), by United States District Court Judge Glenn T. Suddaby announced United States Attorney Richard S. Hartunian and Patrol Agent In Charge Wade A. Laughman, Massena Border Patrol. In November, Figuereo-Minyette pled guilty to illegally reentering the United States following removal, a felony under federal law. Judge Suddaby remanded Figuereo-Minyette, following today’s sentencing, to the custody of the Department of Homeland Security for removal proceedings.
In October 2014, Figuereo-Minyette was arrested by Border Patrol Agents on New York State Route 37 in Fort Covington, New York. Figuereo-Minyette had illegally crossed the border at a remote location on the St. Regis Akwesasne reservation and was picked up by a waiting car shortly before he was stopped and arrested by Border Patrol. Figuereo-Minyette had been previously removed to Spain on June 9, 2014.
The case was investigated by the United States Border Patrol, Massena, NY and prosecuted by Assistant United States Attorney Edward P. Grogan
Alien Sentenced for Illegal Re-Entry near ChamplainRead the Press Release
Had Been Removed in 2005
ALBANY, NEW YORK – Alexis Fuentes, 40 years old of the Dominican Republic, was sentenced today to serve 41 months in prison by United States District Court Judge Glenn T. Suddaby announced United States Attorney Richard S. Hartunian and Patrol Agent In Charge Norman Lague, Champlain Border Patrol. In August, Fuentes pled guilty to illegally reentering the United States after he had previously been removed, a felony under federal law. Following the completion of the term of his imprisonment, the Department of Homeland Security will process Fuentes for removal from the United States to the Dominican Republic.
In June 2014, Fuentes was arrested by Border Patrol Agents on New York State Route 11 in Champlain, New York. Fuentes had illegally crossed the border at a remote location and was picked up by a waiting car shortly before he was stopped and arrested by Border Patrol. Fuentes had been previously removed to the Dominican Republic in May 2005. Fuentes was ordered removed after he was convicted in Berks County, Pennsylvania of an aggravated felony, possession with intent to deliver a controlled substance.
The case was investigated by the United States Border Patrol, Champlain, NY and prosecuted by Assistant United States Attorney Edward P. Grogan.
Alhambra Resident Pleads Guilty to Child Pornography OffensesRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on December 11, 2014, Robert E. Godsey, 34, Alhambra, IL, pled guilty to a three-count Indictment charging him with Distribution of Visual Depictions of Minors Engaged in Sexually Explicit Conduct (Count 1), Receipt of Visual Depictions of Minors Engaged in Sexually Explicit Conduct (Count 2), and Possession of Visual Depictions of Prepubescent Minors Engaged in Sexually Explicit Conduct (Count 3). On Counts 1 and 2, Godsey faces a term of imprisonment of not less than five (5) years but not more than forty (40) years, a fine up to $250,000, and a term of supervised release of not less than five (5) years to life. On Count 3, he faces a term of imprisonment of not more than twenty (20) years, a fine up to $250,000, and a term of supervised release of not less than five (5) years to life. Godsey’s sentencing is scheduled for March 13, 2015, in East St. Louis, Illinois, until then, he will be held in custody without bail.
Facts revealed in Court showed that on July 8, 2014, a special agent with the Department of Homeland Security, Homeland Security Investigations (HSI), obtained a federal search warrant to search a residence in Alhambra occupied by Godsey, and others, for evidence of child pornography. When executing the search warrant, officers seized a Samsung notebook computer from Godsey’s bedroom.
On the same day that the search warrant was executed, Godsey provided a videotaped statement in which he admitted collecting and trading images and videos of minors engaged in sexually explicit conduct with other collectors of child pornography via the internet. Godsey said that he was the only user of the Samsung notebook computer, and that there would be some images and/or videos depicting minors under the age of twelve (prepubescent minors) engaged in sexually explicit conduct. A forensic review of the notebook computer revealed numerous video and image files of minors engaged in sexually explicit conduct and, as acknowledged by Godsey, some of these images and videos were of minors under the age of twelve.
After obtaining Godsey’s consent to assume control of the e-mail account used to trade image and video files of minors engaged in sexually explicit conduct, a special agent with HSI accessed the e-mail account and found video and image files of minors engaged in sexually explicit conduct on the account, many of which involved prepubescent minors. This confirmed Godsey’s statement that he traded images and videos of minors engaged in sexually explicit conduct, many of which depicted prepubescent minors, with other individuals online.
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 case was investigated by the Department of Homeland Security, Homeland Security Investigations. The case is assigned to Assistant United States Attorney Angela Scott.
Albuquerque Man Arraigned on Federal Distribution of Child Pornography ChargeRead the Press Release
ALBUQUERQUE – Ruben Nieto, 45, of Albuquerque, N.M., was arraigned this morning on an indictment charging him with distribution of visual depictions of minors engaged in sexually explicit activity. The indictment alleges that Nieto distributed child pornography in Bernalillo County, N.M., from March 24, 2014 through March 27, 2014. Nieto entered a not guilty plea during his arraignment hearing.
Nieto was arrested by the FBI on Nov. 13, 2014, based on a criminal complaint, and was indicted on Dec. 3, 2014. Court filings reflect that the FBI initiated a federal investigation into Nieto in May 2014, after receiving a referral from the Bernalillo County Sheriff’s Office and the New Mexico Attorney General’s Office, both of which are members of the New Mexico Internet Crimes Against Children (ICAC) Task Force. According to the criminal complaint, in Jan. 2014, investigators identified an IP address that allegedly was being used to download and share child pornography. Subsequent investigation revealed that the IP address was subscribed to the residence in which Nieto allegedly had lived until April 2014. In May 2014, investigators executed a search warrant at the residence and seized computers and computer-related media that allegedly contained child pornography after learning that Nieto regularly used the computer while he lived in the residence.
Nieto remains detained pending trial, which has not yet been scheduled. If convicted of the charge in the indictment, Nieto faces a federal prison term of not less than five years and not more than 20 years. Nieto would also be required to register as a sex offender. Charges in criminal complaints and indictments are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the FBI, the Bernalillo County Sheriff’s Office, the New Mexico Attorney General’s Office and the New Mexico ICAC Task Force.This case is being prosecuted by Assistant U.S. Attorney Shammara H. Henderson as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 74 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
6 Charged in Large-Scale Cocaine and Heroin Trafficking RingRead the Press Release
PITTSBURGH - Six persons have been indicted by a federal grand jury sitting in the Western District of Pennsylvania on various federal narcotics and immigration charges, United States Attorney David J. Hickton announced today.
The three-count indictment, returned on Dec. 10, named Olufemi Young, 35 of Pittsburgh, PA; Tayde Torres, 33 of Fullerton, CA; Javier Ochoa, 52 of Tolleson, Arizona; Hector Armenta-Cardenas, 39 of Fontana, CA; Francisco Javier Campos-Ortega, 30 of Yucaipa, CA; and Joel Rodriguez, 45 of Fontana, CA. All six defendants are alleged to have conspired together to distribute and possess with the intent to distribute heroin and cocaine, while defendants Campos-Ortega and Rodriguez were charged with the possession with the intent to distribute cocaine. In addition, Armenta-Cardenas was charged with unlawful re-entry into the United States by a deported alien.
According to the indictment and information disclosed to courts in prior judicial proceedings, Olufemi Young is alleged to be a large-scale trafficker of cocaine and heroin in Pittsburgh. Since his release from federal prison in 2011, law enforcement has collected evidence demonstrating that Young has conspired to import multiple kilogram quantities of cocaine and heroin into the Western District of Pennsylvania, with these narcotics coming mainly from California and Arizona. Young’s primary suppliers of these narcotics were, as alleged: Torres Armenta-Cardenas, and Ochoa. In April of 2014, law enforcement seized nearly $260,000 in cash from individuals associated with Ochoa in Munhall, Pa. At that time, law enforcement also recovered an “owe sheet,” indicating that Young had purchased 10 kilograms of cocaine and two kilograms of heroin from Ochoa and his co-conspirators. In May of 2014, law enforcement seized another $660,000 in cash from Ochoa and Young in the Lawrenceville section of Pittsburgh. In the late summer of 2014, law enforcement began wiretap interceptions of telephones utilized by Young and Armenta-Cardenas, and pursuant to those interceptions, law enforcement stopped a tractor trailer, being driven by Campos-Ortega and Rodriguez, in Somerset County, Pa., on Nov. 10, 2014. This tractor trailer was carrying 19 kilograms of cocaine destined for Pittsburgh and multiple pallets of food bound for Wal-Mart. Five of the six defendants have been arrested; Tayde Torres remains a fugitive.
The law provides for a maximum total sentence for Young, Ochoa, Torres, and Armenta- Cardenas of up to life in prison, a fine of $10,000,000, or both. Young and Armenta-Cardenas, who have prior federal felony narcotics convictions, face a mandatory minimum of 20 years in prison, while Ochoa and Torres face a mandatory minimum of 10 years in prison. Campos-Ortega and Rodriguez face a maximum total sentence of 20 years in prison, a fine of up to $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, Internal Revenue Service, Federal Bureau of Investigation, Munhall Police Department, Allegheny County District Attorney’s Office, Pennsylvania Attorney General, and the City of Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
10 December 2014
Worley Man Pleads Guilty to Theft from the Benewah MarketRead the Press Release
COEUR D'ALENE - Adam Lee SiJohn, 26, of Worley, Idaho, pleaded guilty today to theft from a tribal organization, U.S. Attorney Wendy J. Olson announced. SiJohn was indicted by a federal grand jury in Coeur d'Alene on October 21, 2014.
According to the plea agreement, SiJohn admitted that on the late evening and into the early morning of August 20 and 21, 2014, he and co-defendants devised a plan to rob the Benewah Market. A co-defendant gave SiJohn the keys and the combination to the store safe. SiJohn took three bank bags from the safe of the Benewah Market that contained cash and checks totaling $22,655.04.
The charge of theft from a tribal organization is punishable by up to five years in prison, a maximum fine of $250,000.00, and up to three years of supervised release.
Sentencing is set for March 3, 2015, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d'Alene.
The case was investigated by Coeur d’Alene Tribal Police and the Federal Bureau of Investigation (FBI).
Wichita Man Who Sold Scooters Sentenced for Tax EvasionRead the Press Release
WICHITA, KAN. A Wichita man who owned a business that sold scooters has been sentenced to 27 months in federal prison, U.S. Attorney Barry Grissom said today. In addition, he was ordered to pay $459,284 in restitution.
Dinh Nguyen, 32, Wichita, Kan., who owned BN Scooters, pleaded guilty to one count of tax evasion. In his plea, he admitted he owed substantial income tax in addition to the tax liability he reported on his 2006 income tax return. He knew he was making a false statement when he reported he did not owe any income tax.
Grissom commended the Internal Revenue Service and Assistant U.S. Attorney David Lind for their work on the case.Vehicle Dealer and Accountant Sentenced to Prison for $75.9 Million Financing Fraud Scheme That Caused 18 Lenders to Lose $58.8 MillionRead the Press Release
CHICAGO — A former area motorcycle and recreational vehicle dealer and his accountant were sentenced to 13½ and 2½ years, respectively, in federal prison for a $75.9 million fraudulent financing scheme that resulted in 18 lenders losing more than $58.8 million, federal law enforcement officials announced today.
RUSSELL S. OTT, 51, of Oswego, who pleaded guilty to bank fraud and tax evasion, was sentenced on Dec. 3 to 13½ years in prison, beginning Jan. 20, 2015, and ordered to pay approximately $61.16 million in restitution to the victim financial institutions and the United States Treasury. Ott was the owner of Emily, Inc., which did business as Pro Source Motorsports and was located last in Morris, Ill. Between 1995 and October 2008, Pro Source, the dealership at the center of the scheme, sold new and used motorcycles, luxury motor homes, recreational vehicles, all-terrain vehicles, boats and jet skis. In 2007 and 2008, Ott also had ownership interests in Liberty Cycle in Libertyville, and Huntley Chevrolet in Libertyville.
BRIAN McMAHON, 55, of Naperville, who pleaded guilty to two counts of aiding and assisting the filing of Ott’s false tax returns, was sentenced today to 2½ years in prison, beginning Jan. 21, 2015, and ordered to pay $396,829 restitution to the U.S. Treasury. McMahon was Ott and Emily, Inc.’s certified public accountant, and he also owned Triumph Suzuki in Naperville between 2001 and 2004 when he sold it to Ott.
The sentences were imposed by U.S. District Judge Edmond E. Chang in Federal Court in Chicago.
Eight other co-defendants who acted as straw buyers in sham vehicle sales were charged with Ott and McMahon in August 2013. All eight have pleaded guilty and have been sentenced or are awaiting sentencing.
According to court documents, Ott’s bank fraud scheme involved two prongs: in one, Pro Source Motorsports fraudulently obtained more than $31.3 million in direct financing through five lines of credit from Fifth Third Bank, which lost more than $27.1 million; and, in the second, individual straw borrowers obtained just under 200 fraudulent loans totaling more than $44.58 million, which resulted in 18 financial institutions losing more than $31.66 million.
Ott and the straw buyers fraudulently obtained money for their personal use and benefit, enabling them to maintain lavish lifestyles, operate various businesses, and/or make investments. The money they obtained created the false appearance of personal wealth and helped induce the lenders to advance funds more readily due to their misplaced confidence that the defendants had sufficient personal wealth to repay the loans.
Ott and McMahon fabricated false personal and business tax documents and financial statements and provided them to Fifth Third Bank, which funded traditional “floor plan loans.” Ott faxed false flooring requests with fictitious vehicle identification numbers for non-existent recreational vehicles, or real VINs for actual RVs but with dramatically inflated values. Ott sometimes “double floored” vehicles by obtaining separate financing from Fifth Third and a different lender for the same vehicle.
Ott enlisted the eight straw borrowers to obtain fraudulent loan proceeds to share with him even though they did not actually purchase the vehicles ― usually very expensive RVs ― for which the loans were made and the vehicles generally did not exist. The lenders generally deposited the loan funds into Emily, Inc.’s bank account, and then Ott periodically disbursed the proceeds to straw borrowers to operate and support their own businesses and lifestyles, make investments, and make monthly payments on some of the loans to perpetuate the scheme.
Ott used fraudulently obtained funds to operate Pro Source, which lost money from approximately 2001 through 2008; and to make lavish purchases, including a house in Elburn for approximately $679,491 and subsequent improvements that increased the home’s cost to more than $1.1 million; a $258,000 vacation home in Butternut, Wis.; a $350,000 rental home in South Elgin; a Sky Hawk 172 Cessna airplane and hanger for approximately $200,000; and pick-up trucks and other vehicles for family members and employees of Pro Source. He also used the money to invest in and purchase other vehicle dealerships, including more than $3.6 million in Huntley Chevrolet, and more than $1 million in Liberty Cycle.
The sentences were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
The government is being represented by Assistant U.S. Attorney William Hogan.
Utah Accountant Sentenced for Filing over $9 Million in False Tax Refund Claims and $300 Million Fictitious Financial InstrumentRead the Press Release
A Heber City, Utah, man was sentenced today to serve 78 months in prison for filing false claims for income tax refunds and for filing a fictitious financial instrument, announced Acting Deputy Assistant Attorney General Larry J. Wszalek for the Department’s Tax Division and the Internal Revenue Service (IRS).
U.S. District Court Judge Clark Waddoups also ordered Dick Reid Jenkins, to pay $250,340 in restitution to the IRS and to serve three years of supervised released upon his release from prison.
In June 2014, Jenkins, a certified public accountant, was convicted at trial of 18 counts of filing false claims for tax refunds and one count of presenting a fictitious financial instrument to the United States. According to the superseding indictment and the proof at trial, in September 2008, Jenkins filed a false individual income tax return for himself for tax year 2007 which claimed an income tax refund of $402,920. Then, in October 2008, Jenkins filed a false amended 2004 individual income tax return, which claimed an income tax refund of $434,261. Both false claims were based on the use of a falsified IRS Form 1099-OID (Original Issue Discount), which is a form of accrued interest, to claim the false refunds. From 2009 through 2014, the IRS has listed this scheme as one of its “Dirty Dozen” worst tax scams.
According to both the superseding indictment and the proof at trial, in addition to his own false returns, from September 2008 through February 2009, Jenkins caused 16 other false federal individual income tax returns to be filed on behalf of other individuals. These false tax returns also used false Forms 1099-OID and claimed federal income tax refunds totaling $8,407,623.
Additionally, according to the superseding indictment and the proof at trial, on June 30, 2008, Jenkins presented a false and fictitious financial instrument to the U.S. Department of the Treasury in the amount of $300 million.
The case was investigated by special agents of IRS-Criminal Investigation. Trial Attorney Stuart Wexler for the Tax Division prosecuted the case.
Two Men Indicted for Child Sexual ExploitationRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two southern Missouri men were indicted by a federal grand jury today, in separate and unrelated cases, on charges involving the sexual exploitation of children.
USA v. Talbott
Jeremiah Shane Talbott, 37, of Oronogo, Mo., was charged in an indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that Talbott used a cell phone to attempt to induce an individual whom he believed to be less than 18 years of age to engage in illicit sexual activity between June 26 and Aug. 26, 2014.
The indictment also contains a forfeiture allegation, which would require Talbott to forfeit to the government any property used to commit the alleged offense, including his cell phone.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cybercrime Task Force, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the FBI.
USA v. Penn
Edward Penn, 31, of Hartville, Mo., was charged in an indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that Penn received and distributed child pornography over the Internet between Jan. 1, 2013, and Oct. 3, 2014.
The indictment also contains a forfeiture allegation, which would require Penn to forfeit to the government any property used to commit the alleged offense, including his cell phone.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cybercrime Task Force and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Dickinson cautioned that the charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Two Individuals Indicted in December Federal Grand JuryRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office announced today the results of the December 2014 Federal Grand Jury.
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. Statutory maximum punishments are in parentheses. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
STEVE ARBY CHANDLER, II, age 44, of Muskogee, OK
Failure to Register as Sex Offender
The Indictment alleges that from on or about April 3, 2014 until on or about July 3, 2014, in the Eastern District of Oklahoma, and elsewhere, STEVE ARBY CHANDLER, II, defendant herein, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received a felony conviction from the State of Michigan on or about January 31, 1990, for the felony offense of Criminal Sexual Conduct 2nd Degree, traveled in interstate commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
The charges arose from an investigation by the United States Marshal Service. The charges are in violation of 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3), punishable by not more than 10 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorney Chris Wilson
DARRELL DEWAYNE PERRY, age 54, Tahlequah, OK
Failure to Register as Sex Offender
The Indictment alleges that from in or about October 2014 until on or about November 20, 2014, in the Eastern District of Oklahoma, and elsewhere, DARRELL DEWAYNE PERRY, defendant herein, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received felony convictions from the State of Oklahoma, in Muskogee County, on or about September 14, 1998, for the offenses of Rape First Degree, Rape by Instrumentation and Sodomy, traveled in interstate and foreign commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act. The charges arose from an investigation by the United States Marshal Service.
The charges are in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3), punishable by not more than 5 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorney Edward Snow
Tulsa Woman Pleads Guilty to Embezzlement and Theft from Indian Tribal OrganizationRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that LaDONNA JANE BURNS, age 44, Tulsa, Oklahoma, pled guilty to Embezzlement and Theft From An Indian Tribal Organization, in violation of Title 18, United States Code, Section 1163, punishable by not more than 5 years imprisonment, and/or up to a $250,000.00 fine.
The charges are a result from an investigation by the Creek Nation Lighthorse Police and the Federal Bureau of Investigation. The defendant was indicted in November 2014.
The Indictment alleged that from on or about April 1, 2013, until on or about September 17, 2013, in the Eastern District of Oklahoma, the defendant, being an employee of the Checotah Muscogee Indian Community, an Indian Tribal Organization, did embezzle, steal, willfully misapply and willfully and knowingly convert to her own use more than $1,000.00 of the moneys, funds and credits belonging to the said Indian Tribal Organization.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Rob Wallace represented the United States.
Trio Charged with Drug CrimesRead the Press Release
Alex DelValle, 37, Justelyn Lopez, 32, and Johnny Solivan, 18, all of Philadelphia, PA, were charged today by indictment with conspiracy to possess with intent to distribute, and attempt to possess with intent to distribute, approximately one kilogram of cocaine, announced United States Attorney Zane David Memeger.
If convicted, each defendant faces a mandatory minimum sentence of five years in prison with a maximum sentence of 40 years, at least four years of supervised release up to a lifetime of supervised release, and a fine of not more than $10 million.
The case was investigated by the United States Postal Inspection Service and is being prosecuted by Assistant United States Attorney Karen L. Grigsby.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Tribal Special Assistant U.S. Attorneys Join U.S. Attorney's Office to Prosecute Crimes in Indian CountryRead the Press Release
TULSA, Okla.—Two Tribal Special Assistant U.S. Attorneys, one each from the Osage Nation and Cherokee Nation, were sworn-in at an investiture ceremony today and will assist with improving public safety in tribal communities, announced Danny C. Williams Sr., United States Attorney for the Northern District.
“Indian Country is a significant priority and my office is committed to building and sustaining safe tribal communities in the Northern District,” said U.S. Attorney Williams. “The Tribal SAUSAs will assist in key prosecution areas which derive from federal jurisdiction over crimes occurring in Indian land to include drug trafficking, sexual abuse, and violence against women.”
Jeff Jones is the Attorney General of the Osage Nation and Sara Hill is the Deputy Attorney General of the Cherokee Nation. Jones and Hill will work alongside Assistant U.S. Attorneys in the Northern District’s Indian Country Prosecution Unit.
The United States Constitution, treaties, federal statutes, executive orders, and court decisions establish and define the unique legal and political relationship that exists between the United States and Indian tribes. Federal laws vest the Department of Justice with primary jurisdiction over most felonies that occur on Indian lands in most states. There are thirteen federally recognized tribes in the Northern District of Oklahoma.
Thirteen Members and Associates of Violent Yonkers Street Gang Charged in White Plains Federal Court with Racketeering, Violent Crimes, Narcotics Conspiracy, and Firearms OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Charles Gardner, the Commissioner of the Yonkers Police Department, announced today the unsealing of a Superseding Indictment charging 13 members and associates of a Yonkers-based street gang, the “Grimy Motherfuckers” (“GMF”), with racketeering, violent crimes, narcotics conspiracy, and firearms offenses. The original Indictment, filed in July 2014, alleged that GMF operated as a Racketeer Influenced and Corrupt Organization (RICO) and charged three GMF affiliates with offenses related to the murder of Tyrone Arthur on December 27, 2013. Today’s Superseding Indictment charges 10 additional GMF members and associates (as well as the three defendants previously charged) with a variety of crimes, including charges related to the March 27, 2010, maiming of a rival gang member.
Eleven of the 13 defendants charged in the Superseding Indictment unsealed today were arrested today or have previously been taken into custody. The defendants arrested today were presented in White Plains federal court this afternoon. The case is assigned to U.S. District Judge Cathy Seibel.
U.S. Attorney Preet Bharara stated: “As alleged, this Yonkers-based gang plagued the community of the Schlobohm Housing Projects with drug dealing and lethal violence. With today’s Indictment and arrests, we are another step closer to making the streets and citizens in this neighborhood safer.”
FBI Assistant Director-in-Charge George Venizelos stated: “As alleged, this investigation targeted violent individuals who used murder, threats and intimidation to further their criminal agenda. The charges demonstrate our continued effort to work closely with our law enforcement partners to strike at gang-related criminal enterprises and to eliminate the terror these groups inflict on our communities. Dismantling violent gangs remains a priority for the FBI.”
Yonkers Police Commissioner Charles Gardner stated: “Once again we have worked with our federal partners the FBI and the US Attorney’s Office for the Southern District of NY to target violent gang members who choose to do business here in Yonkers. These particular suspects failed to recognize our determination in ridding our community of violence. They will now be held accountable for their actions and I would like to thank all of the investigators who were involved in this morning’s arrests.”
According to the allegations in the Superseding Indictment and other documents in the public record:
From at least 2008 through 2014, the GMF has been a criminal enterprise operating in and around the Schlobohm Housing Projects in Yonkers, New York. At its inception, GMF was aligned with the Strip Boyz, a different street gang that was likewise based in the Schlobohm Housing Project in Yonkers and was made up of members one generation older than most GMF members. GMF and the Strip Boyz controlled crack cocaine and marijuana sales in and around the Schlobohm Housing Project and were allied in disputes with rival gang members, including members of the Cliff Street Gangsters and the Elm Street Wolves, two gangs from the east side of Nepperhan Avenue in Yonkers. In late June and early July 2012, law enforcement authorities arrested 20 members of the Strip Boyz on charges of narcotics distribution and/or firearm offenses in a federal case captioned United States v. Mark David, S1 12 Cr. 214 (ER). All 20 defendants have pled guilty in connection with those charges.
The 2012 arrests of the Strip Boyz left GMF the dominant gang in the area around the Schlobohm Housing Project, and GMF members have continued to engage in acts of violence and intimidation to preserve their dominance of the Schlobohm Housing Project and the surrounding areas that they previously shared with the Strip Boyz. In order to protect their territory and enhance the reputation of the gang, GMF members have committed numerous acts of violence, including murder, attempted murders, stabbings, and assaults.
The 10-count Superseding Indictment, United States v. Da’Quan Johnson, et al., charges DA’QUAN JOHNSON, JAMES JOHNSON, KENNETH MOORE, JAMEKE BROWN, DAQUAN COUCH, DARIN FIELDS, ANTHONY FORD, FLOYD GILHAM, CHRISTOPHER GREBINGER, RONNIE KING, GERALD MARTIN, JAMES MCCALLUM, and WILBUR RANDOLPH with conspiring to violate the RICO statute and with using, carrying, possessing, and discharging firearms during and in relation to their participation in the conspiracy. As in the initial Indictment, DA’QUAN JOHNSON and MOORE are also charged with racketeering murder, conspiracy to commit the same, and a firearms offense in connection with the December 27, 2013, shooting death of Tyrone Arthur. JAMES JOHNSON is charged with serving as an accessory after the fact to the December 27, 2013, murder and with attempted murder, maiming, and a firearms offense in connection with the March 27, 2010, shooting of a rival gang member that left the victim paralyzed. Defendants DA’QUAN JOHNSON, JAMES JOHNSON, BROWN, COUCH, GILHAM, KING, MCCALLUM, and RANDOLPH are also charged with conspiring to distribute marijuana.
Charts containing the names, ages, residences, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the FBI’s Westchester Violent Crimes Task Force, which comprises agents and detectives of the FBI, Homeland Security Investigations, the City of Yonkers Police Department, the Westchester County Police, and the Westchester County District Attorney’s Office. He also thanked the Westchester County District Attorney’s Office. He added that the investigation is continuing.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Scott Hartman and Douglas Zolkind are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Da'quan Johnson S1 Indictment
United States v. Da'Quan Johnson Chart
Texan Sentenced to 120 Months in Prison for Transporting a Minor for ProstitutionRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Houston man was sentenced Tuesday to 120 months in prison for bringing a minor from Texas to Louisiana and forcing her to engage in prostitution.
Joshua Baker, 29, of Houston, was sentenced by U.S. District Judge S. Maurice Hicks Jr. for one count of transportation of a minor in interstate commerce with the intent to engage in criminal sexual activity. He was also sentenced to serve five years of supervised release, and must register as a sex offender for life. According to evidence presented at the August 21, 2014 guilty plea, Baker began communicating with a minor in San Antonio, Texas, in 2012. He then transported her from Texas to Shreveport in May of 2013 and forced her to engage in prostitution. For two to three weeks after that, he directed her to engage in prostitution and physically abused her if she refused.
“My office is committed to seeking justice for victims of human trafficking,” Finley stated. “The defendant preyed on a young victim and exploited her for profit. We will continue to work with our law enforcement partners to track down and prosecute sex traffickers.”
The FBI, Child Exploitation Task Force, conducted the investigation. Assistant U.S. Attorney Joseph G. Jarzabek prosecuted the case.This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who 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.
Those concerned may also leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Shreveport FBI office number is (318) 861-1890.
Tennessee Woman Sentenced for Defrauding U.S. Department of TransportationRead the Press Release
PITTSBURGH - A Tennessee woman has been sentenced in federal court to four years probation and eight months home detention on her conviction of mail fraud, United States Attorney David J. Hickton announced today.
United States District Judge Donetta W. Ambrose imposed the sentence on Elizabeth “Betsy” Pope, 49, of Loudon, TN.
According to the information presented to the court, Pope was in business to assist trucking companies with compliance and testing of their commercial truck drivers pursuant to the Drug and Alcohol Testing Program of the Federal Motor Carrier Safety Administration (FMCSA) of the U.S. Department of Transportation. The program includes pre-employment and random testing, testing for cause and post-accident testing. The Pittsburgh based victim is InTransit, LLC, an administrative and service company for several national transport companies. InTransit used Pope d/b/a Eastgate Laboratory Testing as a third party administrator to handle the DOT drug and alcohol testing for them. DOT regulations require that a percentage of negative tests and all positive drug or alcohol tests must be reviewed by a licensed doctor, known under the DOT regulations as a Medical Review Officer (MRO), to oversee the program and determine if there were any innocent reasons why a test was positive. On all FMCSA and DOT required paperwork Pope, without authority or permission, used a computer generated signature of a doctor who had previously worked for her as an MRO for a short time predating the charges in the indictment to create the impression that he had done the necessary oversight and reviews when he had not. The fraud came to light when a commercial truck driver with 18 years of experience tried to contact the MRO after his pre-employment drug test reported as “diluted” for three consecutive tests. When he was unable to get the contact information from Pope for the MRO, he searched for the MRO on the internet. The MRO in turn contacted InTransit to report the unauthorized use of his name. InTransit did an internal investigation and referred the matter to the Inspector General for the Department of Transportation. Pope billed InTransit as though her company had actually performed the required services, causing InTransit to send her checks totaling approximately $109,000.
Assistant United States Attorney Nelson P. Cohen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the U.S. Department of Transportation-OIG for the successful prosecution of Elizabeth “Betsy” Pope.
Tahlequah Man Sentenced to 24 Months for Firearm PossessionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that CHUCK ALLEN EASTHAM, age 41, of Tahlequah, Oklahoma, was sentenced to 2 years imprisonment, followed by 3 years of supervised release for Felon in Possession of a Firearm, in violation of Title 18, United States Code, Section 922(g)(1).
The charge is a result from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The defendant was indicted in March, 2014 and pled guilty in July, 2014.
The Indictment alleged that on or about October 24, 2013, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, one Marlin (Glenfield) Model 30A, 30-30 Caliber lever action rifle, which had been shipped and transported in interstate commerce.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparolable sentence.
Assistant United States Attorney Kyle Waters represented the United States.
Tahlequah Man Pleads Guilty to Racketeering ChargesRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JOSHUA ALLEN BARNETT, age 24, of Tahlequah, Oklahoma pled guilty to Interstate Travel or Transportation in Aid of Racketeering Enterprises, in violation of Title 18, United States Code, Sections 1952(a)(3) and 2.
The charge is a result of an investigation by the Oklahoma Bureau of Narcotics and was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led, and coordinated by, the Office of the United States Attorney. The defendant was indicted in July, 2014.
The Indictment alleged that on or about January 29, 2013, in the Eastern District of Oklahoma and elsewhere, the defendant, traveled in interstate commerce from the State of Oklahoma to Bella Vista, Arkansas, and attempted to purchase Oxycodone from Cornerstone Pharmacy with a false prescription with the intent to promote, manage, establish, carry on and facilitate the promotion, management, establishment and carrying on of an unlawful activity, that is, a business enterprise involving narcotics or controlled substances in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(C), and thereafter performed or attempted to perform an act to promote, manage, establish and carry on, and to facilitate the promotion, management, establishment and carrying on, of such unlawful activity.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is not more than 5 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorney Shannon Henson represented the United States.
Statement of Manhattan U.S. Attorney Preet Bharara on the U.S. Court of Appeals Second Circuit Decision in U.S. V. Todd Newman and Anthony ChiassonRead the Press Release
“Today’s decision by the Court of Appeals interprets the securities laws in a way that will limit the ability to prosecute people who trade on leaked inside information. The decision affects only a subset of our recent cases, and in those cases – as in all our criminal cases – we investigated and prosecuted misconduct based on our good faith assessment and understanding of the facts and the law that existed at the time. We are still assessing the Court’s decision, which appears in our view to narrow what has constituted illegal insider trading, and are considering our options for further appellate review.”
St. Tammany Restaurants and Owner Sentenced for Employing Illegal AliensRead the Press Release
U.S. Attorney Kenneth A. Polite announced that OSAKA THAI CORPORATION, which operated Osaka Japanese Restaurant and Thai House Restaurant in Slidell, SHINTO RESTAURANT, INC., which operated Shinto Japanese Restaurant in Lafayette, and their owner, TONY NGUYEN, age 57, of Slidell, were sentenced today for conspiring to harbor aliens and for engaging in an unlawful pattern and practice of employing aliens.
U.S. District Judge Ivan L.R. Lemelle sentenced the Osaka Thai Corporation, the Shinto Restaurant, Inc., and Tony Nguyen to three years probation and forfeiture of $250,000 of illegal proceeds.
On August 20, 2014, OSAKA THAI CORPORATION and SHINTO RESTAURANT, INC. pled guilty to conspiracy to conceal, harbor, and shield from detection illegal aliens and encourage and induce illegal aliens to remain in the country by providing them housing, transportation, and employment at the restaurants operated by the defendants. That same day, NGUYEN pled guilty to knowingly engaging in a pattern and practice of hiring aliens he knew were unauthorized to work in the United States. As part of their plea agreement, the defendants agreed to forfeit $250,000 in illegal proceeds to the United States.
According to court documents, the defendants knowingly hired illegal aliens to work in their restaurants over a period of several years and provided the aliens with housing and a van to transport them from the housing to the restaurants. Eighteen illegal aliens were arrested when special agents executed search warrants at the restaurants.
U.S. Attorney Polite praised the work of the U.S. Immigration and Customs Enforcement (ICE) - Homeland Security Investigations in investigating this matter. Assistant U.S. Attorney David Haller was in charge of the prosecution.
Southeast Texans Guilty in Counterfeit Check ConspiracyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – Four Southeast Texas residents have pleaded guilty to federal counterfeiting charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Felicia Nicole Ardoin, 30, of Beaumont, Sonja DeAnn Lee, 31, of Orange, Texas, Norris Marie Narcisse, III, 26, of Port Arthur, Texas, and Kevin Douglas Orphe, 41, of Port Arthur, each pleaded guilty to conspiracy to counterfeit business checks. The pleas were held today before U.S. Magistrate Judge Keith F. Giblin.
According to information presented in court, a joint task force was formed after the Beaumont Police Department received an unusual number of complaints from merchants, financial institutions, and account holders that they were the victims of counterfeit checks from January 2012 through January 2014. Twelve companies in the Golden Triangle complained their bank accounts were compromised by 144 counterfeit checks manufactured to appear as legitimate payroll checks. Numerous grocery stores and other merchants who cashed the checks were also affected by the organized counterfeiting activities of the defendants. Losses to merchants and financial institutions exceeded $110,000.
A federal grand jury returned an indictment on Sep. 3, 2014 charging these four defendants and Kenneth Ray Smith, 39, of Orange, with federal violations. Smith pleaded guilty on Nov. 13, 2014, to the conspiracy charge and being a felon in possession of a firearm. The defendants face up to five years in federal prison for the conspiracy conviction. Smith faces up to an additional 10 years in federal prison for the firearms conviction. Sentencing dates have not been set.
In addition to these five defendants, another 25 persons either cashed the checks or otherwise negotiated the checks knowing them to be counterfeited. Those persons will be prosecuted in state courts.
This case was investigated by the Beaumont Police Department, Texas Department of Public Safety, and Homeland Security Investigations HSI-ICE and prosecuted by Assistant U.S. Attorney Robert Rawls.Sioux Falls Man Sentenced for Marijuana DistributionRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, man convicted of Conspiracy to Distribute Marijuana was sentenced on December 8, 2014 by U.S. District Judge Karen E. Schreier.
Wesley Robert Kleinsasser, age 30, was sentenced to 27 months in prison, to be followed by 2 years of supervised release.
Kleinsasser was indicted with three others for Conspiracy to Distribute Marijuana by a federal grand jury on March 5, 2014. He pled guilty to the offense on September 9, 2014.
During his involvement in the conspiracy, Kleinsasser traveled on several occasions from Sioux Falls to California to purchase marijuana. The marijuana was distributed to co-conspirators and others in South Dakota.
This case was investigated by the Sioux Falls Police Department, the Drug Enforcement Administration, and the Internal Revenue Service – Criminal Investigations. Assistant U.S. Attorney John E. Haak prosecuted the case.
Shiprock Man Sentenced to Eleven Years for Conviction on Firearms and Stalking Charges Arising from Threats Against Former Intimate Partner and Her New BoyfriendRead the Press Release
Defendant Prosecuted as Part of Federal Initiative to Address the Epidemic Incidence of Violence Against Native Women
ALBUQUERQUE – Peterson Yazzie, 34, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced to eleven years in federal prison for his conviction on firearms and stalking charges. Yazzie will be on supervised release for five years after completing his prison sentence. The sentence was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and Director John Billison of the Navajo Nation Division of Public Safety.
Yazzie was arrested on April 24, 2014, on a criminal complaint alleging that he stalked his former intimate partner, a Navajo woman, by leaving numerous threatening messages in her cellphone voicemail box on April 12, 2014. In some of the messages, Yazzie threatened to shoot the victim and her new boyfriend. The criminal complaint also alleged that Yazzie assaulted the victim’s new boyfriend on April 12, 2014, by firing multiple shots at a vehicle the boyfriend was driving.
On July 21, 2014, Yazzie pled guilty to the two-count felony information. In his plea agreement, Yazzie admitted stalking his former intimate partner on April 12, 2014 by leaving messages on her cellphone voicemail box including one in which he threatened to “put a bullet in her head,” causing the victim to fear that death or seriously bodily injury would occur. Yazzie also admitted that April 12, 2014, he committed a crime of violence by using a rifle to shoot at a vehicle driven by the second victim. Yazzie acknowledged committing both crimes within Navajo Indian Reservation.
This case was investigated by the Farmington Office of the FBI and Shiprock office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney David Adams.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Seven Charged in Bank Fraud SchemeRead the Press Release
ERIE, Pa. – Seven individuals from four states have been indicted by a federal grand jury in Erie on charges of bank fraud and conspiracy to commit bank fraud, United States Attorney David J. Hickton announced today.
The two-count indictment named Andres Prieto, 32, of Boynton Beach, Florida; Vincent DeLaPena, 63, of Los Angeles, California; Eric Mathew Benavides, 45, of Covina, California; Trieu Phuong Nguyen, 48, of Erie, Pennsylvania; Willie Hugh Joy, 44 of Alpharetta, Georgia; Yenny M. Romero, 32, of Boynton Beach, Florida; and Bart Derrick Alexander, 47, of Palm Beach Gardens, Florida as defendants.
According to the indictment presented to the court, from in and around January 2009, to in and around January 2013, the defendants engaged in a “loan program” in which a hierarchy of “brokers”, “managers”, “processors” and “straw borrowers” falsified bank loan documents and supporting documentation in order to obtain various auto and consumer loans and lines of credit from 21 banks and credit unions.
The law provides for a maximum total sentence of 60 years in prison, a fine of $1,250,000 or both for each defendant. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Serial Bank Robber Sentenced to 15 Years in PrisonRead the Press Release
U. S. Attorney Kenneth Allen Polite, Jr. announced that DWAYNE E. HUPP, age 51, of Bay St. Louis, Mississippi, after having pled guilty to four counts of bank robbery.
U.S. District Judge Kurt D. Engelhardt sentenced HUPP to serve 188 months incarceration followed by three years of supervised release. Additionally, HUPP was ordered to pay $14,991 in restitution to the victim banks.
According to court documents, HUPP admitted that he robbed the Liberty Bank on August 6, 2013, and again on September 10, 2013, and the Crescent Bank and Trust on September 4, 2013, and September 19, 2013. Documents filed in the matter reveal that the defendant was tackled by the security supervisor and the facilities manager as he exited the Crescent Bank and Trust after the last robbery. HUPP was held until the New Orleans Police Department (NOPD) and the Federal Bureau of Investigation (FBI) arrived on the scene. HUPP was questioned shortly thereafter by the FBI and admitted to committing all four robberies. When shown surveillance photographs of the robbery suspect in each of the four robberies, HUPP identified himself as the person in those photographs. HUPP admitted that he was a heroin addict and would regularly travel from Bay St. Louis, Mississippi, to New Orleans to obtain heroin. In order to support his habit, HUPP began to rob local banks.
U.S. Attorney Polite praised the work of the FBI with the valuable assistance of the NOPD in investigating this matter. Also, U.S. Attorney Polite commended the security and facilities personnel who captured the defendant and added that their actions may have prevented additional robberies. Assistant United States Attorneys Mark A. Miller and Michael M. Simpson were in charge of the prosecuted.
Ron Wilson Receives Additional Prison TimeRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Ronnie Gene Wilson, age 67, of the Coleman Federal Corrections Institution in Sumterville, Florida, was sentenced today in federal court in Greenville for his involvement in a conspiracy to obstruct justice, a violation of Title 18, United States Code, Section 371. United States District Judge J. Michelle Childs of Greenville imposed a six-month sentence to be served in addition to the 235 months Wilson is now serving for defrauding almost 800 investors. Thus, in total, Wilson is sentenced to 241 months for fraud-related activities.
Evidence presented at the change of plea hearing established that in late 2011 and early 2012, agents with Secret Service and state law enforcement officers began to investigate Atlantic Bullion and Coin and Ronnie Gene Wilson. It was discovered that Wilson operated what is generally described as a “Ponzi scheme.” In April 2012, Wilson confessed to operating the Ponzi.
On April 27, 2012, the United States District Court—with the consent of Wilson and the Government—appointed a Federal Receiver. The Court’s Order directed the Receiver to take immediate possession of all property, assets and estates owned, controlled, used, or in the possession of Wilson.
During the course of the investigation, the Secret Service talked with Wilson on multiple occasions. On or about September 20, 2012, agents interviewed Wilson about possible hidden assets and cash. Wilson was adamant that there were no hidden assets or cash. He stated that he had turned everything over to the Government.
On November 13, 2012 the District Court ordered Wilson to pay approximately $57 million in restitution to the 798 victims of the Ponzi Scheme. He was sentenced to 235 months in prison.
In April 2014, the Government recovered approximately $164,300. This money had been hidden in an ammunition can. Ron Wilson gave this money to a family member to keep for Wilson so he would have something if he was ever released from the Bureau of Prisons.
The evening before Ron Wilson was sentenced in November 2012, evidence established that Ron Wilson visited the hotel room of a family member in Greenville and gave the family member $7000 in cash in an envelope.
In March 2014, Secret Service and the Receiver recovered another ammunition can of money ($172,859). Ron Wilson had given this money to another family member prior to sentencing.
Cassandra Kendall Wilson, age 66, of Woodruff, South Carolina, and Timothy L. Wilson, age 60, of Martin, Tennessee, are both charged in the indictment and have entered pleas of guilty. They will be sentenced at a later date.
The case was investigated by agents of the United States Secret Service. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.Reserve Man Sentenced for Distribution of Child PornographyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KIRK P. WEBER, age 54, of Reserve, was sentenced today for crimes involving the sexual exploitation of children.
Chief Judge Sarah Vance sentenced WEBER to five years imprisonment followed by 20 years of supervised release. Additionally, WEBER will be required to register as a sex offender pursuant to the Sex Offender Registration and Notification Act.
According to court records, from May 14, 2013 to October 24, 2013, WEBER knowingly used a popular social networking website to distribute images depicting the sexual victimization of minors. During the investigation, federal investigators determined that WEBER used multiple email accounts to receive and download sexually explicit images of minors. WEBER pled guilty on June 4, 2014, and has been in federal custody since his February 7, 2014 arrest.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
U.S. Attorney Polite praised the work of the U. S. Department of Homeland Security, HIS in investigating this matter. Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U. S. Attorney Brian M. Klebba was in charge of the prosecution.
Registered Sex Offender Sentenced to 20 Years on Federal Child Porn ChargeRead the Press Release
WICHITA, KAN. A registered sex offender from Hamilton County, Kan., has been sentenced to 20 years in prison on a federal child pornography charge, U.S. Attorney Barry Grissom said.
Wade H. Dewey, 48, Syracuse, Kan., pleaded guilty to one count of possessing child pornography. In his plea, he admitted that on Aug. 2, 2013, in Syracuse he was found in possession of images and videos depicting child pornography. He obtained the child pornography via the Internet.
Dewey previously was convicted in 1999 in Pueblo, Colo., on a charge of criminal attempt to commit sexual assault on a child.
Grissom commended the Hamilton County Sheriff’s Office, Homeland Security Investigations, the Wichita Police Department and Assistant U.S. Attorney Jason Hart for their work on the case.
Ranch-Owner Found Guilty in Alien Smuggling Conspiracy and Must Forfeit 76-Acre Ranch to the U.S. GovernmentRead the Press Release
SAN DIEGO, CA – Today a federal jury convicted Potrero, California, resident Kala D. Rains, 47, of seven counts of conspiracy and alien smuggling after a trial before the Honorable Anthony J. Battaglia. The jury also found that the ranch used by Rains to facilitate the conspiracy should be forfeited to the United States Government.
According to evidence presented in court, Rains acted in concert with other co-conspirators to use her ranch to facilitate the bringing in and harboring of illegal aliens in order to transport them further into the interior of the United States. Evidence showed that she was part of a conspiracy that orchestrated the smuggling of several loads of illegal aliens from Mexico into the United States in and around the Tecate, California- area.
Her arrest resulted from an investigation conducted by Homeland Security Investigations’ (HSI) Border Enforcement Security Task Force, which is comprised of HSI special agents and U.S. Border Patrol agents. Prosecutors presented evidence of video-recorded undercover meetings, audio recordings, and telephonic evidence to build the case of the conspiracy. Jurors also heard from aliens smuggled into the United States by the organization who testified that they were to pay between $6,500 and $7,500 to members of the conspiracy as a smuggling fee.
“The U.S. Attorney’s Office commends the HSI Special Agents and U.S. Border Patrol Agents who worked tirelessly over the two-year investigation to infiltrate, disrupt, and dismantle this transnational criminal organization,” said United States Attorney Laura E. Duffy.
Previously, co-defendants Caroline Haro Espindola, Jose Maria Partida-Esquivel, and Alexander Flores pleaded guilty for their roles in the alien smuggling conspiracy.
Rains faces a mandatory minimum sentence of three years and a maximum sentence of 10 years in prison and a $250,000 fine. Sentencing is scheduled for February 27, 2015.
DEFENDANT Kala Rains Age: 47 Potrero, California CHARGESCount 1: Conspiracy, 18 U.S.C. § 371
Counts 2 and 3: Bringing in Illegal Aliens for Financial Gain, 8 U.S.C. §1324(a)(2)(B)(ii) and 18 U.S.C. § 2
Counts 4-5: Harboring Illegal Aliens, 8 U.S.C. §1324(a)(1)(A)(iii) and (v)(II)
Counts 6-7: Transporting Illegal Aliens, 8 U.S.C. §1324(a)(1)(A)(ii) and (v)(II)
INVESTIGATING AGENCYHomeland Security Investigations
U.S. Border Patrol
Prior Felon from Carlsbad Pleads Guilty to Violating Federal Firearms and Narcotics LawsRead the Press Release
Christopher Reza Prosecuted Under Federal “Worst of the Worst” Anti-Violence Initiative
ALBUQUERQUE – Christopher O. Reza, 33, of Carlsbad, N.M., pleaded guilty this morning in Las Cruces federal court to firearms and methamphetamine trafficking offenses under a plea agreement with the U.S. Attorney’s Office.
Reza is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Reza was arrested on May 19, 2014, based on a criminal complaint charging him with unlawfully possessing firearms and ammunition and using a firearm in relation to a drug trafficking crime. According to the criminal complaint, officers seized numerous weapons and ammunition as well as methamphetamine, heroin and marijuana when they executed a search warrant at Reza’s residence in Carlsbad on Jan. 28, 2014. At the time, Reza was prohibited from possessing firearms and ammunition because he previously had been convicted of numerous felony offenses including shooting at an inhabited dwelling, shooting from a motor vehicle, aggravated battery on a peace officer, being a felon in possession of a firearm, possession of methamphetamine with intent to distribute, breaking and entering, forgery and identity theft.
During today’s proceeding, Reza pled guilty to a three-count felony information charging him with two counts of being a felon in possession of a firearm and one count of possession of methamphetamine with intent to distribute. In his plea agreement, Reza admitted possessing ammunition on Sept. 8, 2013, in Bernalillo County, N.M., and possessing 24 firearms and ammunition on Jan. 29, 2014, in Eddy County, N.M. He also admitted possessing 5.92 grams of pure methamphetamine on Jan. 29, 2014.
Reza has been in federal custody since his arrest and remains detained pending a sentencing hearing which has yet to be scheduled. Under the terms of his plea agreement, Reza will be sentenced to ten years in federal prison followed by a term of supervised release to be determined by the court.
This case was investigated by the Roswell office of the Bureau of Alcohol, Tobacco, Firearms and Explosive, the Pecos Valley Drug Task Force, the Carlsbad Police Department, the Artesia Police Department and the Eddy County Sheriff’s Office with assistance from the 5th Judicial District Attorney’s Office. Assistant U.S. Attorney Amanda Gould is prosecuting this case.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Panama City, Florida, Man Sentenced to 60 Months for Wire/Mail FraudRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that JAMES DEAN KAYVONFAR, age 53, of Panama City, Florida, was sentenced to five years probation for Conspiracy to Commit Wire Fraud/Mail Fraud, in violation of Title 18, United States Code, Section 1349.
The charge arose from an investigation by the Federal Bureau of Investigation. The defendant was indicted in August, 2012 and pled guilty in June 2013.
The Indictment alleged that in or about August 2007 to in or about April 2010, in the Eastern District of Oklahoma and elsewhere, the defendant, knowingly and wilfully conspired with other persons known and unknown to the Grand Jury, to transmit or caused to be transmitted by means of a wire communication or the United States Mail, communication for the purpose to defraud the United States and Texas Capital Bank, a financial institution insured by the Federal Deposit Insurance Corporation, all in order to obtain money by means of false and fraudulent pretenses, representations, and promises.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Chris Wilson represented the United States.
Owner of Energy Crop Company Sentenced to PrisonRead the Press Release
Fort Myers, Florida - United States District Judge John E. Steele has sentenced William A. Vasden, Jr. (38, Tampa) to 4 years’ imprisonment for wire fraud and making false statements. The Court also ordered restitution for the victims in this case. Vasden pleaded guilty in March 2014.
According to court documents, Vasden was the president of a Tampa-based company known as USCJO, Inc. that claimed to grow fuel and energy producing crops in Florida for a profit. The investigation revealed that from August 2010 through November 2011, Vasden defrauded at least three investors and/or buyers out of more than $3.2 million.
Vasden coordinated multiple seminars and meetings around Florida in which he solicited farmers and investors to contract with his company to plant renewable energy crops that he claimed could be refined into usable biofuel and biomass. During the meetings and seminars, Vasden falsely claimed that he was a farmer whose family owned thousands of acres of land. He also claimed that he was growing and selling the harvested crops to end-user consumers and to the United States military for a substantial profit. He lured investors into paying him to plant the crops based on promises of substantial investment returns. He also fraudulently induced a buyer to enter into purchase order agreements for a substantial amount of money to sell citrus chips. In fact, Vasden never purchased the proper equipment to produce the promised results. He used the money from his victims to fund his extravagant lifestyle.
From October 2010 through April of 2011, Vasden provided false statements in an application for a federal clean energy grant. Those government funds were ultimately withheld when Vasden’s fraudulent activities were discovered.
This case was investigated by the Florida Department of Law Enforcement (Sebring Field Office) and the Federal Bureau of Investigation (Fort Myers Office), with assistance from the Florida Department of Agriculture and Consumer Services - Office of the Inspector General. It was prosecuted by Assistant United States Attorney Tama Koss Caldarone.
- One Convicted and Another Sentenced in 10-Defendant Marijuana Conspiracy