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10 December 2014
North East PA Man Indicted on Child Exploitation ChargesRead the Press Release
ERIE, Pa. - A former resident of North East, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
The three-count indictment named Wesley Chase, 30, as the sole defendant.
According to the indictment presented to the court, Chase distributed, received and possessed computer images depicting minors engaging in sexually explicit conduct.
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.justice.gov/psc.
The law provides for a maximum total sentence of 50 years in prison, a fine of $750,000, 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 Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police and the Indiana County District Attorney’s Office conducted the investigation leading to the indictment in this case
An indictment or information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Newark Man Admits Five Armed CarjackingsRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted committing five armed carjackings between June 6, 2012 and June 22, 2012.
Jahleel McLendon, 21, of Newark, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with five counts of theft of a motor vehicle by force, violence, and intimidation, and one count of brandishing a firearm during a crime of violence.
According to documents filed in this case and statements made in court:
On June 6, 2012, McLendon approached a man sitting in the driver’s seat of a parked Chrysler 300 and ordered him out of the car at gunpoint. Three days later McLendon and an accomplice carjacked an Acura TL while the victim was loading the trunk of the car. On June 15, 2012, McLendon and an accomplice carjacked a Chevrolet Trailblazer at gunpoint, and approximately 20 minutes later, used that Trailblazer to carjack a BMW 325 at a gas station in Newark. On June 22, 2012, McLendon carjacked a Chevrolet Impala at gunpoint. Less than two hours later, McLendon was arrested by Newark police officers and found to be in possession of a handgun.
The carjacking counts to which McLendon pleaded guilty each carry a maximum potential penalty of 15 years in prison. The firearms charge to which McLendon pleaded guilty is punishable by a minimum consecutive term of seven years in prison and a maximum consecutive term of life in prison. Each of these charges also carries a maximum $250,000 fine. Sentencing is scheduled for March 23, 2015.
U.S. Attorney Fishman credited the Newark Police Department, under the direction of Police Director Eugene Venable and Police Chief Anthony Campos; special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; detectives with the Essex County Prosecutor’s Office, under the Direction of Acting Prosecutor Carolyn A. Murray, and investigators with the U.S. Attorney’s Office with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Cari Fais and Meredith Williams of the Criminal Division in Newark.
14-433Defense counsel: Carol Gillen, Esq., Assistant Federal Public Defender, Newark
McLendon, Jahleel Information
New Orleans Woman Sentenced for Defrauding Gulf Coast Claims FacilityRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TEQUILLA LEWIS, age 37, of New Orleans, was sentenced for conspiracy to commit wire fraud relating to fraudulent applications she made to the Gulf Coast Claims Facility (GCCF) for financial assistance in the aftermath of the Deepwater Horizon oil spill in the Gulf of Mexico.
U.S. District Judge Martin L.C. Feldman sentenced LEWIS to three years probation and ordered restitution in the amount of $188,200.
According to court documents, the GCCF made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion. The GCCF required individuals to verify loss of income. Beginning approximately October 2010, LEWIS agreed with other individuals to defraud the GCCF by making and submitting false on-line claims for lost earnings resulting from the Deepwater Horizon oil spill. Pursuant to their agreement, LEWIS provided the individuals with fraudulent documentation to submit along with their false claims to GCCF. LEWIS required them to share part of any claim proceeds with her as a fee for her assistance with the claims. Accordingly, LEWIS filed numerous claim forms with the GCCF claims facility seeking emergency six-month payments on behalf of others, who posed as claimants. The claim forms falsely stated that they had lost earnings as a result of the Deepwater Horizon oil spill. To support the false claims, LEWIS created and submitted false documentation in support of these claims.
As a result of these false representations and documentation, the GCCF paid LEWIS and the other individuals approximately $188,200.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Loan AMimi@ Nguyen was in charge of the prosecution.
New Haven Drug Dealer Sentenced to More Than 5 Years in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SHIRROD HENDERSON, also known as “Rizz,” 35, of New Haven, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 64 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, this matter stems from “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms. More than 100 individuals were charged as a result of the investigation.
HENDERSON has been detained since his arrest on July 12, 2012. On September 9, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of cocaine base (“crack cocaine”).
HENDERSON’s criminal history includes a state conviction for burglary in the second degree, and a prior federal conviction for possession of a firearm by a convicted felon.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Marc Silverman.
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(203) 821-3722 [email protected]Navajo Man Pleads Guilty to Assaulting Federally Commissioned Tribal OfficerRead the Press Release
ALBUQUERQUE – Adrian Lopez, 25, an enrolled member of the Navajo Nation who resides in Fruitland, N.M., pled guilty this morning to assaulting a federal law enforcement officer. The guilty plea was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, and Director John Billison of the Navajo Nation Division of Public Safety.
Lopez was arrested Sept. 12, 2014, on a criminal complaint charging him with assault on a federal officer. According to the complaint, Lopez assaulted a tribal officer who was commissioned as a special federal officer by the BIA on the Navajo Indian Reservation in San Juan County, N.M., on July 28, 2014, following a high speed vehicle pursuit. Lopez subsequently was indicted and charged with assaulting a federal officer.During today’s hearing, Lopez pled guilty to the indictment. In his plea agreement, Lopez admitted being in a vehicle that was fleeing from the tribal officers. Lopez admitted that he and another person fled from the vehicle after it crashed, and that they ignored commands from the officers. As officers attempted to arrest the couple, Lopez grabbed an officer’s belt and pulled him to the ground. Lopez then struck the officer in the head several times and pushed his head into the ground with his hands.
Lopez has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Lopez faces a statutory maximum penalty of eight years in prison.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Linda Mott is prosecuting this case.
Muskogee Woman Pleads Guilty to Concealing Person from ArrestRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JACLYN CAMPBELL, age 24, of Muskogee, Oklahoma pled guilty to Concealing Person from Arrest, in violation of Title 18, United States Code, Section 1071.
The charge is a result of an investigation by the United States Marshal Service. The defendant was indicted in November, 2014.
The Indictment alleged that on or about October 2, 2014, in the Eastern District of Oklahoma, the defendant, JACL YN CAMPBELL, did willfully and knowingly harbor and conceal Joshua Allen Barnett, a person for whose arrest a warrant and process had been issued under the provisions of a law of the United States, so as to prevent the discovery and arrest of Joshua Allen Barnett, after notice and knowledge of the fact that a warrant and process had been issued for the apprehension of Joshua Allen Barnett, and which warrant had been issued on a felony charge.
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 on bond 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.
Multi-Agency Investigation into East L.A. Street Gang Results in Federal RICO Indictment That Charges 38 GangstersRead the Press Release
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USDOJ: US Attorney's Office - CENTRAL DISTRICT OF CALIFORNIA - 160LOS ANGELES – A task force investigation into the street gang that has terrorized the Ramona Gardens housing complex in Boyle Heights for decades has resulted in a federal racketeering indictment and the arrest this morning of 25 members and associates of the criminal enterprise.
During a law enforcement operation this morning, approximately 800 agents and officers targeted Big Hazard, a multi-generational street gang that has brought murder, extortion, robbery and other crimes to Boyle Heights for the past 70 years.
The federal indictment charges a total of 38 defendants. In addition to the 25 people arrested this morning, seven defendants were already in custody, authorities are searching for five fugitives, and one defendant was killed this past weekend.
(As a result of this investigation, another five people were indicted on narcotics charges, four of whom defendants were arrested this morning, bringing the total number of federal arrests today to 29).
A 110-page indictment unsealed this morning outlines criminal activity going back to 2007, including dozens of drug deals, acts of intimidation and violence against people believed to have cooperated with law enforcement, illegal weapons sales and threats made against African-American residents of Ramona Gardens, which includes tagging with phrases such as “no blacks.”
The Hazard gang takes its name from a park near Ramona Gardens and is currently believed to have approximately 350 members. Much of the conduct is alleged in a racketeering charge that outlines a conspiracy to violate the federal Racketeer Influenced and Corrupt Organizations (RICO) Act, which federal authorities in Los Angeles have successfully used for two decades to battle prison gangs and street gangs.
“All of the gang’s operations were done under the umbrella of intimidation – making threats and then committing acts of violence against rival gangsters, law-abiding members of the community and Hazard gang members who might be cooperating with authorities,” said Acting United States Attorney Stephanie Yonekura. “The intimidation and threats extended to African-American residents of Ramona Gardens. In stark and simple messages delivered in person and through graffiti, the Hazard gang made it clear that black residents were not welcome in the neighborhood that it claimed to control.”
The gang’s main business is drug trafficking, according to the indictment, which details more than three dozen narcotics transactions involving as much as nearly one-half pound of methamphetamine. To conceal this business and expand its territory, Hazard members take steps to prevent law enforcement from infiltrating its activities, steps that include CCTV surveillance at drug houses, making bogus complaints about police officers in an attempt to have them moved to patrol other areas of Los Angeles, and threatening and assaulting local residents who cooperate with law enforcement.
The Hazard gang is closely aligned with the Mexican Mafia, and many members of the prison gang have come from Hazard. The lead defendant in the 45-count indictment is Manuel Larry Jackson, also known as “Cricket,” a Mexican Mafia member who oversees the activities of the Hazard gang. The indictment alleges that under Jackson’s control, the gang commits a wide variety of crimes, most significantly drug trafficking, which generates revenues through the sale of narcotics and the “taxing” of drug dealers who operate in Hazard territory. Some of the revenues generated through “taxes” or “rent” are funneled back to Jackson and other members of the Mexican Mafia.
“Calling yourself a ‘taxing’ authority gets the attention of the Internal Revenue Service,” said IRS Criminal Investigation’s Special Agent in Charge Erick Martinez. “The role of IRS Criminal Investigation in narcotics investigations is to follow the money so we can financially disrupt and dismantle major drug trafficking organizations. Undermining the financial infrastructure of narcotics trafficking organizations has proven to be one of the most effective means to disrupt the market for illegal drugs.”
The federal indictment that led to this morning’s takedown charges a total of 38 defendants (although one of those defendants was killed this past weekend). Including Jackson, 29 of the defendants are charged in a racketeering conspiracy count that outlines activities of the gang, its allegiance to the Mexican Mafia and the various tactics it employs to impose fear in the community. The indictment also alleges several violent acts in aid of racketeering, about three dozen narcotics offenses and several crimes related to the illegal possession of firearms.
“Because of defendant Jackson’s power as a Mexican Mafia member and his connection to Hazard, Hazard members and associates have unique authority to engage in criminal activities, such as the sales of drugs and firearms outside of Hazard territory without the risk of violent reprisal that Latino gang members ordinarily would suffer for engaging in such criminal activities in territories controlled by other Latino gangs,” according to the indictment, which alleges that the gang “is continually engaged in the distribution of methamphetamine, phencyclidine (PCP), cocaine, cocaine base in the form of crack cocaine, heroin, and other controlled substances.”
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
Nearly all of the defendants are charged in the RICO count and/or a drug trafficking conspiracy, each of which carries a mandatory minimum penalty of 10 years in federal prison. The maximum statutory penalty for those convicted of those counts would be life without parole.
The investigation into the Hazard gang was conducted by the Federal Bureau of Investigation; the Los Angeles Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and IRS – Criminal Investigation, which worked in conjunction with the Los Angeles County Sheriff’s Department and the Alhambra Police Department.
Release No. 14-160
More than 50 People Indicted in Joint Federal-State Operation Targeting Heroin in YoungstownRead the Press Release
A federal grand jury indicted 16 people for their roles in a drug trafficking conspiracy that brought heroin to Youngstown, law enforcement officials said.
An additional 37 people were charged in state court for violations related to the drug trafficking
The indictments were announced by Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office, Joseph P. Reagan, Special Agent in Charge of the Drug Enforcement Administration's Detroit Office, Youngstown Police Chief Robin Lees, Mahoning County Sheriff Jerry Greene and Mahoning County Prosecutor Paul J. Gains.
“This group brought heroin into Youngstown and used firearms to do it,” Dettelbach said. “The FBI and Mahoning Valley Law Enforcement Task Force did a tremendous job in disrupting this drug pipeline.”
“Fifty-three individuals were taken off the streets today as a result of an in-depth, almost two-year joint investigation,” Anthony said. “These collaborative efforts demonstrate that drugs and violence will not be tolerated by law enforcement.”
Sheriff Greene and Chief Lees said in a joint statement: “Today's roundup of suspects is a result of a lengthy investigation and is an excellent example of the cooperation and collaboration between local and federal agencies in the effort to stem the tide of the heroin epidemic.”
Named in the 119-count federal indictment are: Jean Carlos Martinez, 31, of Campbell; Alberto Delgado, 28, of Youngstown; Chael Soto, 28, of Youngstown; Steven M. Filimon, 28, of Youngstown; Michael L. Schmidt, 35, of New Castle, Penn.; Osvaldo Rivera, age and hometown unknown; Carlos Cruz, 39, of Youngstown; Alexander Torres, 43, of Youngstown; Florentino Torres, 45, of Youngstown; Edgardo Esteras, 23, of Campbell; Juan F. Ortiz, age unknown, of Bayamon, P.R.; Felix Calderon, 25, of San Juan, P.R.; Rafael J. Medina-Vazquez, 35, of Youngstown; Amanda J. Leskey, 25, of Youngstown; Yolanda R. Rivera, 55, of Youngstown, and Jennifer L. Hake, 28, of Youngstown.
According to the indictment, all 16 people knowingly conspired to possess with the intent to distribute and to distribute heroin between January 2012 and November 30, 2014. Martinez supplied heroin to Delgado, Soto, Cruz, Alexander Torres, Florentino Torres, Estaras, Ortiz, and Rivera for distribution in the Youngstown area. Delgado supplied heroin to Schmidt for distribution in the New Castle, Pennsylvania, area and to Filimon and Hake for distribution in the Youngstown area, according to the indictment.
Delgado and Filimon possessed firearms to protect themselves and their drug proceeds. Cellular telephones, code words and phrases were used by the co-conspirators to facilitate their drug trafficking activities, according to the indictment.
In addition, multiple defendants are charged with distributing heroin in the Youngstown, Ohio area and possessing firearms to further their drug trafficking activities.
A related eight-count federal indictment was filed charging Filimon and Randy A. Triplett, 24, of Youngstown, with drug trafficking crimes. Filimon and Triplett conspired and possessed with the intent to distribute and distributed heroin and cocaine from May 2014 through November 30, 2014. Triplett supplied heroin and cocaine to Filimon for distribution in the Youngstown area, according to the indictment.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. 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 Federal Bureau of Investigation, the Mahoning Valley Law Enforcement Task Force and the Drug Enforcement Administration. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
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.
Middlesex County, N.J., Woman Sentenced to 30 Years in Prison for Sexually Exploiting A MinorRead the Press Release
TRENTON, N.J. – A Middlesex County, New Jersey, woman was sentenced today to 30 years in prison for sexually exploiting a minor female by coercing the girl to live stream sexually explicit acts via the Internet, U.S. Attorney Paul J. Fishman announced.
Jane Dornick, 53, of South Plainfield, New Jersey, pleaded guilty, prior to the selection of a jury, to Count One of an indictment charging her with three counts of sexual exploitation of a child. The remaining counts will be dismissed at sentencing. Dornick entered her plea before U.S. District Judge Freda L. Wolfson in Trenton federal court.
According to documents filed in this case and statements made in court:
On August 16, 2010, Dornick coerced and used “Victim 1,” a minor female, to perform sexually explicit acts and live stream them over the Internet to Michael Grennier, 51, who watched remotely via his computer in his home in South Plainfield.
In addition to the prison term, Judge Wolfson sentenced Dornick to lifetime supervised release.
Grennier pleaded guilty before Judge Wolfson to a separate charge of the sexual exploitation of a minor on Dec. 16, 2013, and was sentenced Nov. 21, 2014, to 20 years in prison.
U.S. Attorney Fishman credited special agents of the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s plea. Fishman also thanked the South Plainfield Borough Police Department, under the direction of Chief of Police James Parker, and the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Andrew Carey, for their assistance with the investigation.
The government is represented by Assistant U.S. Attorneys Fabiana Pierre-Louis and Harvey Bartle, Attorney-in-Charge of the U.S. Attorney’s Trenton Office.
14-434
Defense counsel: Bruce Throckmorton Esq., TrentonMexican National Faces 33-Count Indictment After Using U.S. Citizen's Identity for 30 YearsRead the Press Release
WICHITA, KAN. – A Mexican national who assumed the identity of a United States citizen more than 30 years ago has been indicted in federal court here for allegedly engaging in fraud to obtain Medicaid, food stamps, Social Security benefits, voting privileges, a driver’s license and even a U.S. passport, U. S. Attorney Barry Grissom said today.
The man, Ramon Perez-Rivera, 82, was arrested Tuesday by state and federal agents and is to appear before U. S. Magistrate Judge Kenneth G. Gale at 1:30 p.m. Wednesday. Also charged in the case is Perez-Rivera’s wife, Antonia Vargas-Ortega, also 82, who is a naturalized U.S. citizen. The defendants live in Wichita. One of the couple’s adult children, Antonia Vargas-Perez, 47, also has been charged with immigration-related offenses, Grissom said.
“Two years ago, we decided not to pursue charges in this case due the age and circumstances of the defendants,” Grissom said, “but they allegedly continued to engage in the same conduct that brought them to the attention of law enforcement officers in the first place.” He said the couple left his office “no choice” but to pursue and indictment.
“At some point, people have to take responsibility for their actions, whether they are 18 or 80,” Grissom said. “The scope of the allegations in this case is such that the interests of justice simply required action on our part.”
According to the indictment, Perez-Rivera started using the identity of a Phoenix, Ariz., man as early as 1979, and has continued to do so ever since. He even had the identity theft victim’s name changed to his own true name in California court proceedings, the indictment alleges.
After that, he used his true name – Ramon Perez-Rivera – but continued to claim the victim’s date of birth, place of birth, birth parents, and Social Security number as his own, using the information to obtain a U. S. passport, driver’s licenses, Medicaid benefits, food stamp benefits, and even registered to vote and voted, all the while claiming to be a U. S. citizen, according to the indictment.
The indictment alleges 32 crimes against the defendant, as well as six counts against his wife, Ortega-Vargas. The indictment says the couple was married in their hometown of Romita, Buanajuato, Mexico, in 1961, 53 years ago. The indictment alleges that Ortega-Vargas jointly filed for federal food stamp benefits with Perez-Rivera knowing the application for benefits contained false information, including that Perez-Rivera was a United States citizen born in California. Food stamp benefits generally are not available to persons unlawfully present in the United States. The indictment alleges that Perez-Rivera has been fraudulently receiving Medicaid and food stamp benefits since 1999.
The indictment also charges Ortega-Vargas with aiding and abetting identity theft, making false statements to the Social Security Administration, and harboring defendant Perez-Rivera at their Wichita residence. She faces up to five years in prison on the false statement charges and a mandatory sentence of two years in prison on two aggravated identity theft counts.
Perez-Rivera faces similar penalties, although he faces maximum sentences of 10 years on the passport fraud and document fraud counts. He also faces the two-year mandatory sentences on five aggravated identity theft counts.
The case was investigated by the Social Security Administration Office of Inspector General, Immigration and Customs Enforcement, the Kansas Department of Revenue, the Kansas Department of Children and Families, and the United States Department of Agriculture Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Brent Anderson.In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Meadville Woman Charged in Social Security Fraud SchemeRead the Press Release
ERIE, Pa. - A resident of Meadville, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of theft of government property and social security fraud, United States Attorney David J. Hickton announced today.
The two-count indictment named Jennifer Renee Dzera, 35, of Meadville, Pennsylvania as the sole defendant.
According to the indictment presented to the court, from August 2011 to July 2014, Dzera, after applying to receive Supplemental Security Income (“SSI”) Benefits on her son’s behalf, knowingly and willfully converted those benefits to her own use. By doing so, Dzera received payments, valuing approximately $22,250, to which she knew she was not entitled.
The law provides for a maximum total sentence of 15 years in prison, a fine of $500,000, 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 Christian A. Trabold is prosecuting this case on behalf of the government.
The Social Security Administration, Office of Inspector General 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.
Massage Parlor Owner Indicted for Structuring and Sex TraffickingRead the Press Release
Anchorage, Alaska – First Assistant U.S. Attorney Kevin R. Feldis announced today that Yin Mei Tran Lau was indicted for structuring financial transactions in violation of federal law. In addition, Yin Mei Tran Lau has been charged by the State of Alaska with Sex Trafficking in the Third Degree for her role in managing an alleged prostitution enterprise. Yin Mei Tran Lau owns and operates Yin’s Massage Therapy located in Anchorage. As alleged in court documents, beginning as early as 2009, Yin Mei Tran Lau operated Yin’s Massage Therapy as a front for prostitution.
The federal indictment charges that in January 2009, over the course of approximately one week, Yin Mei Tran Lau attempted to structure bank transactions. Structuring occurs when an individual knowingly layers cash deposits or withdrawals under the $10,000 reporting threshold so as to evade reporting requirements mandated by the Bank Secrecy Act. Yin Mei Tran Lau allegedly used some of this illegally structured money to purchase real property in Anchorage.
The State of Alaska alleges that from 2011 to 2014, Yin Mei Tran Lau operated Yin’s Massage Therapy as a front for prostitution. An unsealed affidavit by detectives investigating the case indicates that the clientele was almost entirely men, that the only women besides Yin Mei Tran Lau in the business appear to actually reside at the business, and that the women working at Yin’s Massage Therapy would offer to perform sexual acts for a fee. Moreover, Yin Mei Tran Lau allegedly transported multiple women in and out of Alaska for purposes of prostitution.
The case was jointly prosecuted by Assistant U.S. Attorney Thomas Bradley of the U. S. Attorney’s Office for the District of Alaska and Adam Alexander of the State of Alaska Department of Law’s Office of Special Prosecutions. The case was investigated by the Innocence Lost Task Force, consisting of participation from the Internal Revenue Service Criminal Investigation (IRS-CI), Federal Bureau of Investigations (FBI), Homeland Security Investigations (HSI) and the Anchorage Police Department.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted of structuring, Yin Mei Tran Lau faces five years imprisonment as well as fines. If convicted of sex trafficking in the third degree as charged by the State of Alaska, Yin Mei Tran Lau faces up to five years of imprisonment. Yin Mei Tran Lau is scheduled for arraignment on her State Court charges on December 16, 2014, at 10:00 a.m.Manchester Man Sentenced to 54 Months in Federal Prison for Role in Three Armed Bank RobberiesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LEROY McCOY, 49, of Manchester, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 54 months of imprisonment, followed by three years of supervised release, for committing violent bank robberies in Southbury, Cromwell and Wallingford.
According to court documents and statements made in court, McCOY, Michael Morris and Keith Sutherland conspired to commit the armed robberies of the Naugatuck Savings Bank in Southbury on April 20, 2011, the Webster Bank in Cromwell on October 7, 2011, and the Connex Credit Union in Wallingford on April 19, 2012.
Prior to each robbery, Sutherland, with the knowledge of McCOY and Morris, stole a minivan in the New Haven area. Upon arriving at each victim bank, McCOY, Morris and two other individuals, wearing masks and armed with handguns, burst into the bank and ordered employees and customers to the ground. They then forced a bank employee to open the vault, stuffed money taken from the vault and teller drawers into duffle bags, exited the bank fled in the stolen vehicle.
A total of approximately $230,000 was taken during the three robberies.
McCOY has been detained since his arrest on October 4, 2013. On September 11, 2014, he pleaded guilty to one count of conspiracy to commit armed bank robbery.
McCOY’s criminal history includes nine convictions for felony offenses, including robbery.
Morris and Sutherland have pleaded guilty and await sentencing.This ongoing investigation is being conducted by the FBI, the Connecticut State Police, and the Cromwell, Wallingford, Fairfield and Orange Police Departments. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
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(203) 821-3722 [email protected]Man Sentenced to Prison for Robbery of a Jewelry CourierRead the Press Release
An Atlanta man was sentenced to 70 months in prison today for his role in the robbery of a jewelry courier, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Sally Quillian Yates of the Northern District of Georgia.
Jose Vicente Ramirez-Rodriguez, 40, of Atlanta, pleaded guilty on Dec. 10, 2014, to conspiracy to commit Hobbs Act robbery and interstate transportation of stolen property. In addition to the prison sentence, U.S. District Judge Steve C. Jones of the Northern District of Georgia ordered Ramirez-Rodriguez to pay $122,398 in restitution.
According to admissions in his plea agreement, Ramirez-Rodriguez followed the jewelry courier to a QuikTrip gas station on Jan. 31, 2013. As he was following the courier, Ramirez-Rodriguez contacted a co-defendant to help him with the robbery. That co-defendant, in turn, contacted the other three defendants, all of whom came to the gas station together. When the courier was putting gas in his car, two of the defendants approached him, one restrained him with a knife, while the other smashed the car’s window and took a briefcase containing over $125,000 in assorted jewelry.
Honorio Sanchez-Valenica, John Rodriguez, Ali Alejandro Godoy-Maximo, and Michael Alejandro Tovar-Vargas, were sentenced to serve 137 months in prison, 63 months in prison, 68 months in prison and 87 months in prison respectively on Oct. 27, 2014, for their involvement in the robbery.
This case was investigated by the FBI, Immigration and Customs Enforcement, and the Gwinnett County Police Department, with assistance from the Dallas Police Department. The case is being prosecuted by Laura Gwinn of the Organized Crime and Gang Section and Assistant U.S. Attorney Kim Dammers of the Northern District of Georgia.
Malvern Company Sentenced for Defrauding the City of Philadelphia and Debarred from City BusinessRead the Press Release
PHILADELPHIA - Airmatic, Inc., a company located at 284 Three Tun Road, Malvern, PA, was sentenced today to three years of probation and a $350,000 fine for a mail fraud scheme involving a city contract. In addition, U.S. District Court Judge Paul S. Diamond ordered the company to pay $556,633.03 in restitution to the City of Philadelphia. As part of its plea agreement, Airmatic agreed to a debarment by the City of Philadelphia for three years, and all of its contracts with the City were cancelled effective October 31, 2014.
The company pleaded guilty on July 22, 2014 to one count of mail fraud. Between January 2007 and August 2012, Airmatic supplied unapproved, off-contract products to various City departments in violation of its agreements with the City. The company submitted false and fraudulent invoices to the City’s accounts payable department in order to conceal that it was providing off-contract products. Instead of reflecting the unapproved, off-contract products that were actually being provided, the invoices billed for items that were approved pursuant to the City’s agreements with defendant Airmatic. Airmatic inflated the cost of the unapproved, off-contract items and products it provided to the City by an average of approximately 87% and profited from this scheme in the amount of approximately $556,633.03. For example, in one instance Airmatic falsely invoiced the City for a bearing assembly (an expensive industrial product and approved contract item), when, in fact, Airmatic delivered 12 asphalt rakes, items for which the defendant had no contract. To disguise the transaction, Airmatic manipulated the invoice and billed the City for the price of the bearing assembly, which the City never received, resulting in an extravagant profit margin on the sale of the rakes. Hundreds of similar transactions took place.
The case was investigated by the City of Philadelphia Office of Inspector General and the FBI. It was prosecuted by Assistant United States Attorney Jennifer Chun Barry.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Local Labor Official Sentenced on Federal ChargesRead the Press Release
St. Louis, MO – ANTHONY DAVIS, president of Mail Handlers Local 314, was sentenced to 21 months in prison and ordered to pay full restitution on charges involving his embezzlement of approximately $42,166 of union funds by using fake invoices submitted for payment.
Davis, O’Fallon, IL, was convicted in September of one count of embezzlement of Labor Union funds. He appeared today for sentencing before United States District Judge Carol E. Jackson.
This case was investigated by the U.S. Department of Labor Office of Inspector General and Office of Labor-Management Standards. Assistant United States Attorneys Dianna Collins and John Ware handled the case for the U.S. Attorney's Office.
Lawrence Man Sentenced for Filing A False Tax ReturnRead the Press Release
KANSAS CITY, KAN. A Lawrence man has been sentenced to 30 months in federal prison for filing a false tax return, U.S. Attorney Barry Grissom said.
Bradley Stoneking, 31, Lawrence, Kan., pleaded guilty to making false statements in his income tax return for 2010. He falsely claimed federal tax withholdings on gambling winnings in the amount of approximately $330,000. In fact, the federal tax withholding on his gambling winnings was $300.
Grissom commended the Internal Revenue Service and Assistant U.S. Attorney Scott Rask for their work on the case.
- Katy Woman Charged with Passing Forged Treasury Checks
Justice Department Sues Scotland County, North Carolina, Public Housing Agency and Two Employees for Sexual HarassmentRead the Press Release
The Justice Department today filed a lawsuit against Southeastern Community and Family Services, Inc. (formerly Four-County Community Services, Inc.), a public housing agency that administers the Section 8 voucher program in Scotland County, North Carolina, along with two of its employees John Wesley and Eric Pender. The lawsuit alleges that Wesley, the Section 8 housing coordinator, and Pender, the housing inspector, have sexually harassed female voucher program participants and applicants, in violation of the Fair Housing Act.
The complaint, filed in the U.S. District Court for the Middle District of North Carolina, alleges, among other things, that Wesley and Pender have subjected voucher program participants and applicants to unwanted sexual comments, sexual touching and other sexual acts, conditioned or offered Section 8 benefits in exchange for sexual acts and took adverse housing actions against those who rebuffed their sexual advances. As alleged in the complaint, Pender and Wesley have engaged in this conduct while exercising their authority as employees of Southeastern Community and Family Services (SCFS), and SCFS has failed to take reasonable preventive or corrective measures.
“No one, including those who seek public assistance for housing benefits, should be subjected to sexual harassment, particularly by the very people tasked with providing critical assistance,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “The Justice Department will continue its vigorous enforcement of the Fair Housing Act against those who abuse their power and authority.”
“To invade the safety and security of someone’s home with sexually harassing and other abhorrent behavior will not be tolerated,” said U.S. Attorney Ripley Rand for the Middle District of North Carolina. “The goal of this lawsuit is to vindicate the rights of those subjected to the types of shameful conduct alleged in the Complaint – conduct that is a violation both of federal law and of basic human decency.”
The suit seeks monetary damages to compensate victims, civil penalties, and a court order barring future discrimination and requiring additional preventive measures.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination by Southeastern Community and Family Services, John Wesley, or Eric Pender or have other information about this matter can contact the Justice Department at 1-800-896-7743, mailbox 94, or e-mail the Justice Department at [email protected]. Persons who believe that they have experienced unlawful housing discrimination elsewhere can contact the Justice Department at 1-800-896-7743, or e-mail [email protected], or contact the Department of Housing and Urban Development at 1-800-669-9777.
The complaint is an allegation of unlawful conduct. The allegations must be proven in federal court.
Justice Department Sues Scotland County, North Carolina, Public Housing Agency and Two Employees for Sexual HarassmentRead the Press Release
WASHINGTON – The Justice Department today filed a lawsuit against Southeastern Community and Family Services, Inc. (formerly Four-County Community Services, Inc.), a public housing agency that administers the Section 8 voucher program in Scotland County, North Carolina, along with two of its employees John Wesley and Eric Pender. The lawsuit alleges that Wesley, the Section 8 housing coordinator, and Pender, the housing inspector, have sexually harassed female voucher program participants and applicants, in violation of the Fair Housing Act.
The complaint, filed in the U.S. District Court for the Middle District of North Carolina, alleges, among other things, that Wesley and Pender have subjected voucher program participants and applicants to unwanted sexual comments, sexual touching and other sexual acts, conditioned or offered Section 8 benefits in exchange for sexual acts and took adverse housing actions against those who rebuffed their sexual advances. As alleged in the complaint, Pender and Wesley have engaged in this conduct while exercising their authority as employees of Southeastern Community and Family Services (SCFS), and SCFS has failed to take reasonable preventive or corrective measures.
“No one, including those who seek public assistance for housing benefits, should be subjected to sexual harassment, particularly by the very people tasked with providing critical assistance,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “The Justice Department will continue its vigorous enforcement of the Fair Housing Act against those who abuse their power and authority.”
“To invade the safety and security of someone’s home with sexually harassing and other abhorrent behavior will not be tolerated,” said U.S. Attorney Ripley Rand for the Middle District of North Carolina. “The goal of this lawsuit is to vindicate the rights of those subjected to the types of shameful conduct alleged in the Complaint – conduct that is a violation both of federal law and of basic human decency.”
The suit seeks monetary damages to compensate victims, civil penalties, and a court order barring future discrimination and requiring additional preventive measures.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination by Southeastern Community and Family Services, John Wesley, or Eric Pender or have other information about this matter can contact the Justice Department at 1-800-896-7743, mailbox 94, or e-mail the Justice Department at [email protected]. Persons who believe that they have experienced unlawful housing discrimination elsewhere can contact the Justice Department at 1-800-896-7743, or e-mail [email protected], or contact the Department of Housing and Urban Development at 1-800-669-9777.
The complaint is an allegation of unlawful conduct. The allegations must be proven in federal court.
Jury Convicts Easton Man of Meth, Money Laundering ConspiraciesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Easton, Mo., man was found guilty by a federal trial jury today of participating in a conspiracy to distribute methamphetamine in the St. Joseph, Mo., area and a conspiracy to commit money laundering.
Jeffrey Ray Pendleton, also known as “Fro,” 34, of Easton, was found guilty of participating in a conspiracy to distribute methamphetamine and participating in a money-laundering conspiracy.
Evidence introduced during the trial indicated that Pendleton was involved in the conspiracy to distribute methamphetamine in the St. Joseph area from Jan. 1, 2009, to July 19, 2012. During the same time, Pendleton conspired with others to engage in financial transactions with the proceeds of the drug-trafficking conspiracy.
Pendleton was arrested by the Kansas Highway Patrol on April 30, 2010, after a high speed vehicle pursuit in Lenexa, Kan. Pendleton fled from troopers and local officers until his vehicle became disabled, then ran on foot before being taken into custody. Following his arrest, troopers recovered six different prescription narcotic pills, a digital scale, methamphetamine, syringes and approximately $5,000. Pendleton was arrested again on Jan. 19, 2011, after a short vehicle pursuit by Lenexa, Kan., police officers. During the pursuit, Pendleton tossed a white object out the window that was later determined to be methamphetamine.
A former girlfriend of Pendleton and other cooperating defendants told investigators that Pendleton possessed methamphetamine every two to three days during late 2009 and 2010. Two traveled with Pendleton when he went to Kansas City, Kan., to pick up $10,000 worth of methamphetamine, which he brought back with them to St. Joseph for distribution.
Other individuals also told investigators they had witnessed Pendleton in possession of methamphetamine on numerous occasions. They stated they saw Pendleton with “softball”-size and fist-size bags of methamphetamine. One of the cooperating individuals told investigators that Pendleton was in possession of a large plastic bag, which contained three pounds of methamphetamine.
A cooperating individual told investigators that Pendleton orchestrated the beating of a girl in the basement of a St. Joseph residence over a drug debt. The victim of the beating sought medical attention at a hospital emergency room. Pendleton forced the beating victim to pose for cell phone photos with a hypodermic needle in her arm, and told her that if she reported the beating he would send the photos to family services and the victim would lose custody of her children.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about 90 minutes before returning the verdicts to U.S. District Judge Gary A. Fenner, ending a trial that began Tuesday, Dec. 9, 2014.
Under federal statutes, Pendleton is subject to a mandatory minimum sentence 10 years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $10.5 million. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Buchanan County Drug Strike Force, the Drug Enforcement Administration and the Clay County Drug Task Force.
Johnstown Man Sentenced to Prison for Heroin Trafficking ConspiracyRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., was sentenced in federal court on Dec. 9, 2014, to 24 months in prison and three years supervised release on his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Matthew John Claycomb, 23.
According to information presented to the court, on Jan. 25, 2013, Claycomb, along with co-defendants, distributed less than 100 grams of heroin.
Assistant U.S. Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation leading to the successful prosecution of Matthew John Claycomb.
Jefferson County Man Guilty of Drug TraffickingRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 41-year-old Port Acres, Texas man has pleaded guilty to federal drug violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Chad Piazza pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on Dec. 9, 2014 before U.S. District Judge Marcia Crone.
According to information presented in court, beginning in January 2012, Piazza and a co-defendant, Wendy Claudine Hopkins, 45, of Groves, Texas, conspired to distribute methamphetamine in the Jefferson County, Texas area. As part of his plea, Piazza admitted that he was a member of the Aryan Brotherhood of Texas and used his association with the ABT to further his drug trafficking activities.
A federal grand jury returned an indictment on May 15, 2014 and charged Piazza and Hopkins with drug trafficking violations. Piazza entered his guilty plea during jury selection for his trial, which was set to begin yesterday.
Hopkins pleaded guilty on Nov. 5, 2014 to conspiracy to possess with intent to distribute methamphetamine. Both defendants face a minimum of 10 years in federal prison. Sentencing dates have not been set.
This case was investigated by the U.S. Drug Enforcement Administration, the Port Arthur Police Department and the Jefferson County Sheriff’s office and prosecuted by Assistant U.S. Attorney John B. Ross.Jasper County Man Guilty of Distributing CocaineRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 28-year-old Jasper, Texas man has pleaded guilty to federal drug violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Shane Dwayne Hadnot pleaded guilty to possession with intent to distribute cocaine today before U.S. Magistrate Judge Keith F. Giblin.
According to information presented in court, on Nov. 7, 2013, Alfred Wright, of Jasper, Texas, was reported missing by his family after his truck broke down in rural Sabine County, Texas. Articles of Wright’s clothing were found on private land, approximately a mile from where Wright was last seen. After searchers initially failed to locate Wright, his body was found on Nov. 25, 2013 in brush near where his clothing had been found. An investigation into the cause of Wright’s disappearance and death revealed his involvement with Shane Hadnot. Phone records, witness statements, and drug evidence located during the search of Shane Hadnot’s car, indicated that Hadnot was selling cocaine to Alfred Wright.
During the two-day period before Wright’s death, Hadnot and Wright exchanged 20 text messages. The indictment alleges that on Nov. 7, 2013, Wright sent a text message to Hadnot at 12:36 pm requesting to purchase cocaine and other illegal narcotics from Hadnot. Wright went missing approximately five hours later. An autopsy was performed on Wright’s body and toxicology testing revealed that Wright’s blood contained cocaine, methamphetamine and Xanax. The final autopsy report, and other experts in the fields of pathology, toxicology, and anthropology concluded that Wright’s cause of death was an accident due to combined drug intoxication. Hadnot was indicted by a federal grand jury on Aug. 6, 2014 and charged with drug trafficking violations.
“Today’s guilty plea signals that this investigation has reached a significant point of closure,” said U.S. Attorney Bales. “Shane Hadnot is being held accountable for his criminality and the associated factual context for Hadnot’s plea provides the truth for why Alfred Wright lost his life in the Sabine County woods. Of course, today’s court activity will provide little solace for Mr. Wright’s family who lost a husband, father, brother and son. Can anyone doubt that the distribution and use of illegal narcotics is a cancer in American society? On behalf of the U.S. Attorney’s Office, the Texas Rangers, DEA and FBI, I again express our sorrow and our condolences to those who loved Alfred Wright. I also want to commend the Rangers, the agents and the officers who worked countless hours to determine what happened and who should be held accountable – they have done their duty and I am honored to be associated with this team.”
Hadnot faces up to 20 years in federal prison at sentencing. A sentencing date has not been set.
This case is being investigated by the Texas Rangers, the Federal Bureau of Investigation, and the U.S. Drug Enforcement Administration. This case is being prosecuted by Assistant U.S. Attorneys Brit Featherston and John B. Ross.Huntington Man Sentenced to 312 Months for Distribution of Heroin and Crack Cocaine in Boyd CountyRead the Press Release
ASHLAND, KY - A Huntington, W.Va., man, previously convicted of second degree murder, has been sentenced to 312 months in federal prison for trafficking in heroin and crack cocaine in Boyd County.
On Tuesday, December 9, U.S. District Judge David Bunning sentenced 32 year-old Jason C. Brown and ordered him to serve 15 years of supervised release following the completion of his prison term. Judge Bunning enhanced Brown’s sentence because Brown’s criminal history qualifies him as a career offender. Brown has a prior drug trafficking felony conviction and a conviction for second degree murder in West Virginia. Under federal law, he must serve at least 85 percent of his prison sentence.
Evidence at Brown’s trial in September of this year established that Brown sold heroin on multiple occasions to individuals in Boyd County between January 2013 and April 2013. He also sold crack in February 2013. Evidence also established that Brown fled Ashland once he learned of the warrant for his arrest on these matters.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Howard S. Marshall, Special Agent in Charge, Federal Bureau of Investigation, and Rodney Brewer, Kentucky State Police Commissioner, jointly made the announcement today.
The investigation was conducted by the Federal Bureau of Investigation’s Safe Streets Task Force and the Kentucky State Police. Assistant U.S. Attorney Tony Bracke prosecuted this case on behalf of the federal government.
Honduran Man Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that NELSON FLORES-CRUZ, age 30, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of a removed alien.
According to the Bill of Information, on or about August 12, 2014, FLORES-CRUZ was found in the United States after having been officially deported and removed on or about July 11, 2008.
FLORES-CRUZ faces a maximum term of imprisonment of two years and a fine of $250,000, or the greater of twice the gross gain to the defendant, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Martin L. C. Feldman set sentencing for April 8, 2015.
U.S. Attorney Polite praised the work of the Department of Homeland Security/Immigration and Custom Enforcement and Removal in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Greenbrier County woman sentenced in federal court for dealing heroinRead the Press Release
Beckley, W.Va. – United States Attorney Booth Goodwin announced today that a White Sulphur Springs woman was sentenced to federal prison for possession with intent to distribute heroin. United States District Judge Irene C. Berger sentenced Amanda Nicole Canaday, 27, to 18 months in prison. Canaday pled guilty in July of 2014, admitting that on August 31, 2013, she possessed 56 packets of heroin that she intended to sell. She stored the heroin in her apartment in White Sulphur Springs. She also admitted that she had been selling heroin for some time.
The case was investigated by the Greenbrier Valley Drug and Violent Crime Task Force under the Greenbrier Heroin and Pill Initiative, as part of an ongoing law enforcement effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the sale of heroin and the illicit sale and misuse of prescription drugs in the Southern District. Assistant United States Attorney John File handled the prosecution of this case.
Goddard Man Charged with Seven Counts of Producing Child PornographyRead the Press Release
WICHITA, KAN. –Paul F. Grimm, 43, Goddard, Kan., is charged with seven counts of producing child pornography. The crimes are alleged to have occurred in 2011, 2012 and 2013 in Sedgwick County, Kan.
The indictment alleges he sexually exploited a 13-year-old girl in order to make the images.
If convicted, he faces a penalty of not less than 15 years and not more than 30 years in federal prison on each count, as well as a fine of up to $250,000 on each count. The FBI investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Grimm has been charged in federal court in Texas in a separate indictment alleging he had sex with a minor girl on a cruise ship.
OTHER INDICTMENTS
Michael Muoghalu, 61, Pittsburg, Kan., is charged with one count of wire fraud and one count of money laundering. The crime is alleged to have occurred beginning in 2006 in Pittsburg, Kan.
The indictment alleges that while Muoghalu worked for Pittsburg State University and managed a program for recruiting Nigerian graduate exchange students he fraudulently obtained more than $148,000 in Pittsburg State University refunds to Nigerian graduate exchange students. The money came from fees paid by Nigerian exchange students who were accepted into Pittsburg State’s Masters of Business Administration program.
The students were required to pay a deposit for tuition and fees to Pittsburg State upon being accepted into the program. After the students were enrolled, they were to receive partial refunds of their deposits. The indictment alleges the defendant fraudulently directed students to pay a portion of their refunds to him for acting as the students’ agent in obtaining the refund. The defendant filed fraudulent paperwork causing the university to issue partial refunds totaling $148,430.
If convicted, he faces a maximum penalty of 20 years and a fine up to $250,000 on the wire fraud count, and a maximum penalty of 20 years and a fine up to $500,000 on the money laundering count. The Pittsburg State University Police, the Crawford County Sheriff’s Office, the Internal Revenue Service, the FBI and the Springfield, Mo., Police Department investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Gerardo Arzate-Arzate, 23, a citizen of Mexico, is charged with attempting to enter McConnell Air Force Base in Wichita using a counterfeit identification indicating he was a legal permanent resident of the United States.
Azarte-Azarte is charged with one count of possessing false documents, four counts of aggravated identity theft, one count of producing a false identification document, one count of making a false statement to the U.S. government and one count of misusing a Social Security number. The crimes are alleged to have occurred in 2013, 2014 and 2015 in Sedgwick County, Kan.
The indictment alleges he was arrested Nov. 17, 2014, while attempting to enter McConnell using a counterfeit U.S. Department of Homeland Security Permanent Resident Card bearing his photo and an alien registration number assigned to another person. He was working for Central Missouri Countertops, Inc., of Columbia, Mo., a subcontractor for Warden Construction Corp. of Jacksonville, Mo., which has a contract with the U.S. Air Force for improvements related to the KC-46 air refueling aircraft project.
Upon conviction, the crimes carry the following penalties: Possession of false documents: A maximum penalty of 10 years and a fine up to $250,000.
Aggravated identity theft: A mandatory two years to run consecutive to the underlying sentence and a fine up to $250,000 on each count.
Producing a false identification: A maximum penalty of 15 years and a fine up to $4250,000.
Making a false statement to the U.S. government: A maximum penalty of five years and a fine up to $250,000.
Misusing a Social Security number: A maximum penalty of five years and a fine up to $250,000.Immigration and Enforcement’s Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Andris Cukurs, 68, Glendale, Calif., is charged with one count of attempted money laundering. The government is seeking forfeiture of more than $314,800 seized Nov. 14, 2014. The crime is alleged to have occurred in Dickinson County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $500,000. The Kansas Bureau of Investigation and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
Michael L. Shelton, 32, Wichita, Kan., is charged one with one count of possession of methamphetamine with intent to distribute, one count of possession with of heroin with intent to distribute, one count of unlawful possession of a firearm following a felony conviction, one count of possession of a stolen firearm and one count of possession of a firearm in furtherance of a drug trafficking crime. The crimes are alleged to have occurred Oct. 21, 2014, in Clark County, Kan.
Upon conviction, the crimes carry the following penalties: Possession of methamphetamine with intent to distribute: Not less than 10 years and a fine up to $10 million.
Possession of heroin with intent to distribute: Not less than five years and not more than 40 years and a fine up to $5 million.
Possession of a firearm following a felony conviction, possession of a stolen firearm: A maximum penalty of 10 years and a fine up to $250,000.
Possession of a firearm in furtherance of drug trafficking: Not less than five years and a fine up to $250,000.
The Drug Enforcement Administration investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.Curtis D. Wooten, II, 30, Wichita, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction, one count of possession of a stolen firearm, and one count of unlawful possession of a sawed off shotgun. The crimes are alleged to have occurred Sept. 18, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison on each count. The Wichita Police Department investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
John P. Stark, 47, Great Bend, Kan., Kan., Deona L. McNutt, 24, Great Bend, Kan., Alyssa Dannebohm, 30, Hutchinson, Kan., and Keith M. Dannebohm, 22, Hutchinson, Kan. are charged with counterfeiting $100 bills. In the same case, Justin E. Herren, 30, Great Bent, Kan., is charged with one count of passing two $100 bills.
In addition, Stark is charged with one count of unlawful possession of a firearm following a felony conviction and three counts of making counterfeit bills.
If convicted, the defendants face a maximum penalty of 10 years and a fine up to $250,000 on the firearms charge, and a maximum penalty of 20 years and a fine up to $250,000 on each of the other counts.
The U.S. Secret Service and the Department of Homeland Security investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
Joseph Anthony Ransom, 29, Ellis, Kan., and Carly Marie Dreiling, 21, Hays, Kan., are charged with one count of growing181 marijuana plants in the basement of their residence, one count of possessing 181 marijuana plants, and one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred Sept. 25, 2014, in Ellis County, Kan.
If convicted, they face a maximum penalty of 20 years and a fine up to $1 million on each of the drug charges; and a penalty of not less than five years and a fine up to $250,000 on the firearm charge. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney David Lind is prosecuting.
Pedro Garcia-Cordero, 41, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found July 7, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Teodoro Erasmo Luna, 53, a citizen of Mexico, is charged with three counts of making a false statement to the U.S. government, three counts of misusing a Social Security number, five counts of aggravated identity theft, two counts of document fraud, one count of unlawful production of an identification document, one count of making a false statement on a passport application and one count of making a false claim of U.S. citizenship. The crimes are alleged to have occurred in 2010, 2011, 2013 and 2014 in Ford County, Kan.
Upon conviction, the crimes carry the following penalties: False statement: A maximum penalty of five years in federal prison and a fine up to $250,000.
Misusing a Social Security number: A maximum penalty of five years and a fine up to $250,000 on each count.
Aggravated identity theft: A mandatory consecutive two-year sentence and a fine up to $250,000.
Document fraud: A maximum penalty of 15 years and a fine up to $250,000.
The U.S. Department of State and Defense Security Services investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.Antonio Perez-Vargas, 47, a citizen of Mexico, is charged with two counts of making false statements to the U.S. government.
If convicted, he faces a maximum penalty of five years in federal prison and a fine up to $250,000 on each count. The Social Security Administration – Office of Inspector General investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.- Fugitive Surrenders in Stolen Identity Refund Fraud Scheme
Franklin Man Sentenced for Robbing SunTrust BankRead the Press Release
NORFOLK, Va. – Shane Bradshaw, 27, of Franklin, Virginia, was sentenced today to 120 months in prison, followed by three years of supervised release, and directed to pay $7,781.50 to SunTrust Bank for his role in robbing the Franklin branch of SunTrust Bank on January 3, 2014.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, and Royce E. Curtin, Special Agent in Charge of the Federal Bureau of Investigation’s Norfolk Field Office, made the announcement after sentencing by United States District Judge Raymond A. Jackson.
Bradshaw proceeded to a jury trial, but pleaded guilty on August 6, 2014, at the conclusion of the government’s evidence in the case. According to testimony at trial and court documents, Bradshaw conspired with his co-defendant Louis Doughtie to rob the Franklin branch of SunTrust Bank. On January 3, 2014, the two men entered the bank, having concealed their faces with ski masks and wearing dark clothing and gloves. They carried air-soft pistols that they had spray-painted black to look like real firearms. Bradshaw and Doughtie forced multiple customers waiting in line to the ground, and thenBradshaw leaped over the bank teller counter and personally cleaned out the teller drawers. The two men escaped with approximately $8,000 in cash.
Doughtie pleaded guilty on June 17, 2014. On September 25, 2014, Doughtie was sentenced to 50 months in prison, followed by three years of supervised release. He was also ordered to pay restitution to SunTrust Bank.
This case was investigated by the Federal Bureau of Investigation and the City of Franklin, Virginia, Police Department. Assistant U.S. Attorneys V. Kathleen Dougherty and Joseph E. DePadilla prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-66.Tweet
Four Russian Nationals Indicted on Fraud ChargesRead the Press Release
St. Louis, MO – Four Russian nationals have been indicted for conspiring to travel from Russia to casinos across the United States, including several local casinos, to cheat at particular slot games using electronic devices.
According to the indictment, the charged defendants engaged in a conspiracy to cheat at least 10 casinos in Missouri, California and Illinois through the use of electronic devices. The devices were used to predict the behavior of a certain make and model of slot machine game known as the Aristocrat Mark VI Electronic Gaming Device. By communicating with a foreign server, the devices allowed the defendants to predict the behavior of the Mark VI games and obtain winnings from the games that far exceeded what would be expected from fair play. The defendants made multiple trips from Russia to the United States in order to carry out their scheme, using the devices to cheat casinos in St. Louis, Missouri; Temecula, California; and East St. Louis, Illinois, among others.
MURAT BLIEV; YEVGENIY NAZAROV; IGOR LAVRENOV; and IVAN GUDALOV were indicted by a federal grand jury on charges of traveling in interstate and foreign commerce in furtherance of the conspiracy. Bliev, Lavrenov, and Gudalov are all believed to reside in Moscow, Russia. Nazarov is a U.S. citizen residing in Miami, Florida.
If convicted, each count of the indictment carries a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation with assistance from Homeland Security Investigations, Immigration and Customs Enforcement, the Missouri Highway Patrol, the Missouri Gaming Commission, the Illinois State Police, the Illinois Gaming Board and the California Department of Justice, Bureau of Gambling Control. Assistant United States Attorney Richard E. Finneran is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Former Office Manager to Serve Year in Prison and Pay over $141,000 in Restitution for Tribal EmbezzlementRead the Press Release
Robin Jean Bitseedy, 41, of Anadarko, Oklahoma, was sentenced by Chief United States District Judge Vicki Miles-LaGrange to serve twelve months and one day in federal prison for embezzlement from the Wichita and Affiliated, Caddo, and Delaware Tribes, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. Bitseedy was also ordered to pay $141,820.47 in restitution to the tribes.
According to Court records, Bitseedy worked as the Office Manager for Wichita, Caddo, Delaware Enterprises, Inc. (“WCD Enterprises”), a corporation organized by the Wichita and Affiliated, Caddo, and Delaware Tribes. Bitseedy’s position gave her access to tribal funds which she used to embezzle money from December 2007 through June 3, 2013. In pleading guilty to the embezzlement, Bitseedy admitted that she used the WCD Enterprises Walmart credit card for personal use without permission and wrote checks to herself with forged signatures. She admitted she used the money to purchase gift cards and items for family and pay the rent and bills for her family.
Bitseedy was charged by information on August 11, 2014, and pled guilty on August 28, 2014. At sentencing hearing, the Judge ordered Bitseedy to report to the Bureau of Prisons on January 9, 2015, to begin serving her prison sentence.
This case is the result of investigations conducted by the Bureau of Indian Affairs and was prosecuted by Assistant U.S. Attorney Rozia McKinney-Foster.
Former Office Manager to Serve Year in Prison and Pay over $141,000 in Restitution for Tribal EmbezzlementRead the Press Release
Oklahoma City, Oklahoma – ROBIN JEAN BITSEEDY, 41, of Anadarko, Oklahoma, was sentenced by Chief United States District Judge Vicki Miles-LaGrange to serve twelve months and one day in federal prison for embezzlement from the Wichita and Affiliated, Caddo, and Delaware Tribes, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. Bitseedy was also ordered to pay $141,820.47 in restitution to the tribes.
According to Court records, Bitseedy worked as the Office Manager for Wichita, Caddo, Delaware Enterprises, Inc. ("WCD Enterprises"), a corporation organized by the Wichita and Affiliated, Caddo, and Delaware Tribes. Bitseedy’s position gave her access to tribal funds which she used to embezzle money from December 2007 through June 3, 2013. In pleading guilty to the embezzlement, Bitseedy admitted that she used the WCD Enterprises Walmart credit card for personal use without permission and wrote checks to herself with forged signatures. She admitted she used the money to purchase gift cards and items for family and pay the rent and bills for her family.
Bitseedy was charged by information on August 11, 2014, and pled guilty on August 28, 2014. At sentencing hearing, the Judge ordered Bitseedy to report to the Bureau of Prisons on January 9, 2015, to begin serving her prison sentence.
This case is the result of investigations conducted by the Bureau of Indian Affairs and was prosecuted by Assistant U.S. Attorney Rozia McKinney-Foster.
Former Executives Admit to Defrauding Employer of $1 Million through Fraudulent Expense ClaimsRead the Press Release
Used Forged Receipts and Invoices in Seven-Year Scheme to Claim Reimbursements for Mislabeled Personal Expenses and Obtain Duplicate Reimbursements
Greenbelt, Maryland – Paul Dunham, age 59, and his wife, Sandra Dunham, age 58, of Northampton, England, formerly of Montgomery County, Maryland, pleaded guilty today to conspiring to commit wire fraud in connection with a scheme in which they requested reimbursement from their employer for mortgage payments on time shares in Barbados, luxury bedding for their home, a dog sofa and other personal expenses to their employer. Paul Dunham also pleaded guilty to money laundering.The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to their guilty pleas, the defendants worked for PACE Worldwide which was located at various times in Maryland and North Carolina, and had a subsidiary in the United Kingdom named PACE Europe Ltd. PACE produced parts for the repair and reworking of electronics for the military and others. Paul Dunham held a number of executive positions, including president and chief operating officer. Sandra Dunham was initially hired to work for the European subsidiary in the accounts department, and eventually became the director of sales and marketing for PACE Worldwide. The Dunhams relocated from the United Kingdom to Maryland and then North Carolina, and were provided with corporate credit cards.
Between 2002 and 2009, Paul and Sandra Dunham fraudulently charged personal expenses to their corporate credit cards and submitted vouchers to PACE for reimbursement that falsely described the expenditures as business expenses. For example, Paul Dunham represented that $3,007 had been spent on meals during business meetings, when in fact the money was spent on luxury bedding for his upscale North Carolina residence. Sandra Dunham sought reimbursement for $8,397 which she represented as expenses incurred to cancel a vacation due to a business meeting, when these expenses were actually mortgage payments the couple made on two separate time share units the couple had purchased in Barbados. Other personal expenses which were falsely described as business expenditures included personal legal fees, expensive furniture, a domed pet residence and a dog sofa.
The couple also fraudulently billed PACE Europe Ltd. for business expenses already paid by PACE Worldwide, obtaining duplicate reimbursements.
In addition, a substantial portion of the scheme involved Paul Dunham abusing a private position of trust to manage and direct others, including his secretary, in the execution of the scheme. Moreover, Paul Dunham repeatedly forged receipts and invoices to create the false appearance that they were for business, rather than personal expenses.
As a result of the lengthy scheme, $1 million in actual losses were incurred. Paul and Sandra Dunham have agreed to forfeit and pay restitution of $1 million.
Paul Dunham faces a maximum sentence of 20 years in prison for the conspiracy and money laundering. Sandra Dunham and the government have agreed that if the Court accepts the plea agreement, Sandra Dunham will be sentenced to 60 days of incarceration. U.S. District Judge Paul W. Grimm has scheduled sentencing for both defendants for January 29, 2015, at 1:30 p.m.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant United States Attorneys David I. Salem and Leah J. Bressack, who are prosecuting the case.
Former Chief Financial Officer/Senior Vice President of PARIC Construction Indicted on Fraud ChargesRead the Press Release
St. Louis, MO – BRIAN PALUCH, former Chief Financial Officer & Senior Vice President of PARIC Construction was indicted on three charges of mail fraud involving his scheme to use the company’s corporate funds to pay his own personal expenses during the period January, 2010 through February, 2014.
According to the indictment, Paluch used the PARIC issued American Express card to pay for personal expenses, including personal travel, dining, spa charges, electronics and personal gifts for family and friends. In order to conceal his scheme, Paluch submitted false and altered financial summaries of the monthly American Express statements by deleting and altering his own personal charges. On several occasions, Paluch forged the PARIC President’s signature on these false financial summaries as purported authorization for the payments. Additionally, as part of his employment at PARIC, Paluch was permitted to join the Sunset Country Club, and PARIC paid the monthly membership dues. Paluch, on behalf of PARIC, entered into an agreement with Sunset for the purchase of various types of apparel and golf items containing the PARIC corporate logo. The indictment alleges that Paluch created sham and inflated Sunset Country Club invoices to pay for personal items at the club unrelated to the legitimate business of PARIC. In his position as CFO, Paluch was responsible for calculating the annual bonuses for PARIC’s employees, including his own. As a further part of his scheme, Paluch inflated his base salary in calculating his own annual bonus for several years. Paluch also assisted a PARIC employee issue corporate checks to pay for the employee’s daughter’s private school tuition without PARIC’s knowledge. Additionally, during Summer, 2011, Paluch directed the payment of $5,000 in PARIC corporate funds to a St. Louis area law firm as an incentive for that law firm to hire his niece as a summer associate.
Paluch, Kirkwood, Missouri, was indicted by a federal grand jury on three felony counts of mail fraud. He is expected to appear in federal court later this week.
If convicted, each count of the indictment carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Postal Inspection Service, the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office. The victim, PARIC Construction Company, provided assistance in the investigation.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Former CEO of TierOne Bank Charged in Scheme to Defraud Bank’s Shareholders and Mislead RegulatorsRead the Press Release
The former Chief Executive Officer of TierOne Bank, a publicly traded commercial bank formerly headquartered in Lincoln, Nebraska, was charged today for his role in a scheme to defraud TierOne’s shareholders and mislead regulators by concealing the declining value of its loan and real estate portfolio. Earlier this week, the former President and Chief Operating Officer pleaded guilty for his role in the scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Thomas R. Metz of the FBI’s Omaha Division and Special Inspector General for the Troubled Asset Relief Program (SIGTARP) Christy Romero made the announcement.
“Today’s charges against the CEO of TierOne Bank represent our continuing drive to prosecute fraudulent conduct that jeopardizes our nation’s financial institutions,” said Assistant Attorney General Caldwell. “We will continue to investigate and prosecute bank executives who engage in deceptive and fraudulent behavior, fueled by greed.”
“What Gilbert G. Lundstrom’s indictment demonstrates is that cheating and breaking the law will not be tolerated,” said FBI Special Agent in Charge Metz. “This joint investigation, in conjunction with SIGTARP reflects the FBI’s nonstop commitment to protect our communities by aggressively investigating and bringing to justice individuals exploiting their influence or position for personal gain.”
“SIGTARP’s investigation with the FBI, DOJ, and the U.S. Attorney’s Office has resulted in criminal charges against Gilbert Lundstrom, former CEO of TARP applicant TierOne Bank, for hiding bank losses and past due loans arising from the bank’s aggressive expansion out of its traditional lending areas,” said Special Inspector General Romero. “Lundstrom is essentially charged with having two set of books, with the books shown to regulators concealing tens of millions of dollars in delinquent loans. Rather than tell the truth that this aggressive expansion resulted in a loan portfolio declining in value that threatened the bank’s capital position, this bank CEO is alleged to have engaged in a conspiracy to conceal the bank’s true financial condition from regulators who were examining the bank and reviewing the bank’s TARP application. Taxpayers shouldered the burden of TARP to make our system safer, not to fill holes on bank’s books caused by fraud.”
Gilbert G. Lundstrom, 72, of Lincoln, Nebraska was the CEO of TierOne Bank from 1999 to January 2010. According to allegations in the indictment, during that time, he and others concealed the true value of TierOne’s loan and real estate portfolio and provided falsely inflated figures in its required reports to the U.S. Securities and Exchange Commission (SEC) and the Office of Thrift Supervision (OTS). Specifically, Lundstrom and others allegedly used outdated property appraisals and rejected new appraisals that would have required TierOne to mark down the value of its real estate holdings. In addition, Lundstrom and others allegedly delayed seeking new appraisals to conceal the depreciating value of its loan collateral, and restructured loan terms to disguise the borrowers’ inability to make timely interest and principal payments. As a result, Lundstrom and others were allegedly able to hide millions of dollars in losses from regulators and investors.
In 2008, TierOne submitted an application to the OTS seeking Troubled Asset Relief Program (TARP) funding. Ultimately, TierOne withdrew its application and did not receive TARP funds. TierOne filed for bankruptcy shortly after the bank was shut down by OTS in June 2010.
The charges and allegations contained in the indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
James A. Laphen, 65, of Omaha, Nebraska, the former President and Chief Operating Officer of TierOne, pleaded guilty earlier this week to conspiracy to commit securities fraud, wire fraud, making false entries in a bank’s books and records, and making false statements before U.S. Magistrate Judge Cheryl R. Zwart of the District of Nebraska. His sentencing hearing is scheduled for February 27, 2015. On Sept. 9, 2014, TierOne’s former Chief Credit Officer, Don A. Langford, also pleaded guilty for his role in the fraud. His sentencing hearing will be scheduled at a later date.
The case was investigated by the FBI’s Omaha Division and SIGTARP. The SEC also provided substantial assistance in the investigation. The case is being prosecuted by Trial Attorneys Henry P. Van Dyck and L. Rush Atkinson of the Criminal Division’s Fraud Section.
Former Associate Dean of MIT Sloan School and His Harvard MBA Son Plead Guilty in Hedge Fund ScamRead the Press Release
BOSTON – Two Boston-area hedge fund managers pleaded guilty today to conspiring to mislead investors into investing more than $500 million in their fraudulent hedge fund business.
Gabriel Bitran, 69, of Newton, a former professor and associate dean of the Massachusetts Institute of Technology (MIT) Sloan School of Business, and his son Marco Bitran, 39, of Brookline, a Harvard Business School graduate and money manager, pleaded guilty to conspiracy to commit securities fraud, wire fraud and obstruction of justice in connection with their hedge fund businesses, GMB Capital Management and GMB Capital Partners. U.S. Senior District Judge Mark L. Wolf deferred a determination as to whether he will accept the plea until the time of sentencing which is scheduled for March 27, 2015.
“This office continues to pursue complex white-collar crimes no matter who the perpetrator,” said United States Attorney Carmen M. Ortiz. “No one is above the law. Here, a highly respected MIT professor and his well-educated son used their connections to lure investors into a scam which ultimately lost more than $140 million.”
“Gabriel and Marco Bitran cheated their victims out of hundreds of millions of dollars of their retirement money and savings by lying to them over and over again and claiming false returns and profits. Today’s guilty plea is a significant step in our ongoing effort to bring justice to victims of investment fraud. The FBI and our law enforcement partners will keep exposing those responsible for these crimes as long as innocent people are cheated out of their hard earned money,” said Vincent B. Lisi, Special Agent in Charge of the Boston Division of the FBI.
“Investment returns that seem too good to be true – such as those offered by the Bitrans –should be a signal to investors to stay clear” said Special Agent in Charge William P. Offord of IRS Criminal Investigation. “Today's guilty pleas demonstrate our collective efforts to ensure that the financial services industry will not be used for unlawful personal gain, but will be operated in a fair and honest manner to promote the public interest.”
As set forth in the Information to which the they pleaded guilty, from 2005 through 2011, Gabriel and Marco Bitran solicited and maintained investors in their hedge fund and investment advisory businesses through false claims that, for eight or more years, they had managed friends and family funds, delivering average annual returns between 16 and 23%, with no down years. The Bitrans falsely told investors that the money in GMB hedge funds would be invested according to a complex mathematical trading model developed by Gabriel Bitran and based upon his MIT research on optimal pricing theory. The Bitrans also routinely concealed from investors that certain of their hedge funds were simply “funds of funds,” that is, hedge funds in which values of investments are determined by the value of investments in other independently managed hedge funds, some of which were themselves broad-based funds of funds.
By means of their fraudulent representations, the Bitrans induced investors to entrust over $500 million to their businesses. From this money, the Bitrans paid themselves millions of dollars in management fees.
In the fall of 2008, several of the Bitrans’ hedge funds had disastrous losses, resulting in investors losing 50–75% of their principal in many instances. Nonetheless, in the fall of 2008, as their funds were experiencing these losses, Gabriel and Marco Bitran redeemed approximately $12 million of their own money from these hedge funds, while deferring other investors’ requests for redemption. The Bitrans thereby extracted much of the value of their own investments while leaving other investors to suffer more losses as the funds’ values declined precipitously.
In January 2009, while investigating potential victims of the Madoff fraud, examiners from the United States Securities and Exchange Commission (SEC) learned of the Bitrans’ performance claims and asked for supporting documentation. In response, the Bitrans made false statements to the SEC examiners and provided fabricated records purporting to support their claimed trading performance.
As they did so, Gabriel and Marco Bitran acknowledged to each other that they had made false statements to investors and owed them restitution. For example, in July 2009, Gabriel Bitran emailed Marco Bitran and discussed the fact that they had misled investors:
“We have mislead [sic] a lot of people with a range of statements that were incorrect simply to increase our income. . . . A person with the experience and knowledge of the financial sector and a veteran professor of MIT should not have engaged in this type of behavior. . . . I certainly do not blame you for everything that happened; we both share responsibility. . . . With [several named individuals] and probably a few others . . . we told them a story that was not true! . . . In my view you are discarding their anger as bad losers. This is not the whole story. They are not idiots, they know that they were mislead [sic]. The penalty for this type of action is Full [sic] restitution, which obviously we cannot afford.”
Similarly, in a September 1, 2009 email, Marco Bitran acknowledged to his father that he had not acted honestly. He stated:
“We are certainly sharing equally in this dad. . . . Lots of our problems were caused by my good intentions but very poor actions when it came to true honesty.”
Still, from early 2009 through 2010, the Bitrans took steps to shield their assets by transferring them out of GMB businesses and into entities with less obvious affiliations to Gabriel and Marco Bitran. To effect some of these transfers, they used the identity of a family member without that person’s knowledge, obtaining falsely notarized signatures in that person’s name, to shield millions of dollars that they had preferentially transferred out of the GMB hedge funds.
In total, the Bitrans lost more than $140 million of GMB investors’ principal.
If the plea agreements are accepted by the Court, the Bitrans will be sentenced to no less than two years and no more than five years in jail, as well as three years of supervised release, and forfeiture in the amount of $10 million.
U.S. Attorney Ortiz, SAC Lisi, and SAC Offord made the announcement today. The United States Attorney’s Office received valuable assistance from the Securities and Exchange Commission in the course of investigating this case. The case is being prosecuted by Assistant United States Attorneys Sara Miron Bloom of Ortiz’s Economic Crimes Unit, Brian Pérez-Daple of the Major Crimes Unit and Mary Murrane, Chief of the Asset Forfeiture Unit.
If you believe that you are victim or have any information regarding this case you may contact us at [email protected].
The details contained in the information are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law or the Court accepts their guilty pleas.
Florence Man Sentenced for Possessing Child PornographyRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Andrew Stephen Jackson, age 44, of Florence, South Carolina was sentenced in federal court in Florence, for possession of child pornography, a violation of 18 U.S.C. § 2252A(a)(5)(B) and (b)(2) by United States District Judge R. Bryan Harwell of Florence. Jackson was sentenced to ten years imprisonment to be followed by Supervised Release for Life, during which time Jackson will be required to: register as a sex offender, submit to polygraph examinations, submit to electronic monitoring and receive counseling. Jackson was also ordered to pay $150,000 in restitution to his victims.
Evidence presented at the change of plea hearing established that Jackson traded child pornography with an individual in Australia in October 2010. A search warrant was executed at Jackson's residence and thousands of images of child pornography were found on Jackson's computers.
The case was investigated by agents of the FBI. Assistant United States Attorney William E Day, II of the Columbia office prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.- Felon Pleads Guilty to Possessing Firearms and More Than 200 Rounds of Ammunition
Federal Prosecutor Recognized with National AwardRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that Assistant U.S. Attorney Randall D. Eggert was recognized at a national awards ceremony in Washington, D.C., today for his role in the prosecution of a capital case involving inmates at the U.S. Medical Center for Federal Prisoners in Springfield, Mo.
Eggert was among the recipients of the 2014 Criminal Division Assistant Attorney General’s Award for Distinguished Service. The award, which recognizes superior performance and service, was presented to the trial team of Eggert, Trial Attorney James D. Peterson of the Capital Case Section of the U.S. Department of Justice’s Criminal Division, and Special Agent Rick McLain of the FBI for the successful prosecution of Wesley Paul Coonce and Charles Hall.
“Randy Eggert has been an invaluable asset to this office for the past 17 years,” Dickinson said. “His exemplary work in this case deserves this special recognition and reflects the same commitment to justice, diligent work ethic and astute professionalism he brings to every case he prosecutes on behalf of the United States.”
Wesley Paul Coonce, Jr., 34, and Charles Michael Hall, 43, who were both inmates at the U.S. Medical Center for Federal Prisoners, were found guilty on May 7, 2014, of murdering another inmate. Coonce was also found guilty of murder by an inmate serving a life sentence. Coonce and Hall were both sentenced to death.
Attorney General Eric Holder addressed the 136 award recipients at today’s ceremony. “Your work is central to the mission of this department, and to the promise of our nation: the promise of equal justice under law,” Holder said. “Your efforts help to protect, and to realize, the rights – of safety, security, opportunity, and justice – to which your fellow citizens are entitled. And all across the country – from our biggest cities, to our smallest towns; from rural areas to tribal lands – you play a crucial role in improving public safety, keeping dangerous criminals off the streets, cracking down on financial and health care fraud, and safeguarding the most vulnerable members of society from violence, exploitation, and abuse.”Endicott Man Sentenced for Writing a False Letter Accusing his Former Boss of Being a Foreign Intelligence OfficerRead the Press Release
BINGHAMTON, NEW YORK –United States Attorney Richard S. Hartunian and Federal Bureau of Investigation (“FBI”) Albany Special Agent in Charge Andrew W. Vale, announced today the sentencing of RYAN LETCHER, age 39, of Endicott, New York. LETCHER was convicted on August 6, 2014, after a jury trial of one count of knowingly and willfully making a false statement in violation of 18 U.S.C. §1001(a)(3). On December 4, 2014, the Honorable Thomas J. McAvoy sentenced LETCHER to a four year term of probation and ordered LETCHER to pay a $5,000 fine and perform 180 hours of community service. Additionally, LETCHER was ordered to have no contact with his former boss and with BAE Systems.
In March 2012, LETCHER wrote an anonymous letter accusing his former supervisor of being a foreign intelligence officer. The testimony during trial established that the term “foreign intelligence officer” means a spy for another country. LETCHER admitted that he sent the letter and stated that he sent the letter because of his disdain for his former supervisor.
The case was investigated by the FBI and was prosecuted by Assistant United States Attorney Tamara Thomson.
El Paso, Texas, Man Sentenced to 70 Months for Cocaine DistributionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that ELADIO ARGUELLES, age 26, of El Paso, Texas, was sentenced to 78 months imprisonment and 4 years supervised release for an Information charging him with Possession with Intent to Distribute 5 Kilograms or More of Cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).
The charge arose from an investigation by the Savanna Police Department and the Drug Enforcement Administration.
The Information filed on July 24, 2014 alleged that on or about April 5, 2014, in the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with the intent to distribute five (5) kilograms or more of a mixture or substance containing a detectable amount of Cocaine, a Schedule II Controlled Substance.
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 Chris Wilson represented the United States.
Eight Defendants Charged with Distributing Heroin in Chicago Area on Behalf of Guerrero Unidos Mexican Drug CartelRead the Press Release
CHICAGO — An Aurora man who allegedly led the Chicago area cell of the Guerrero Unidos Mexican drug trafficking cartel is among eight defendants who are facing federal narcotics charges here for their alleged roles in distributing kilogram quantities of heroin, federal law enforcement officials announced today. The investigation, led by the Chicago DEA, resulted in the seizure of approximately 68 kilograms of heroin, nine kilograms of cocaine, and more than $500,000 in cash since August 2013.
The alleged cell leader, PABLO VEGA CUEVAS, 40, and his brother-in-law, ALEXANDER FIGUEROA, 37, both of Aurora, were arrested yesterday morning in southeast Oklahoma, and three other defendants were arrested in the Chicago area. Arrest warrants were issued for three additional defendants, including one who is believed to be in Mexico. Also yesterday, DEA agents and local police seized several automobiles and executed four federal search warrants at residences in Aurora, Chicago, and Rockford, as well as at a business tied to Vega, Salude Bienstar, in Aurora.
According to a 131-page complaint affidavit unsealed yesterday, Vega worked with various narcotics sources in Mexico to import wholesale amounts of heroin and cocaine from Mexico to Illinois, often concealing the narcotics in commercial passenger buses that traveled from Mexico to Chicago. Vega’s organization stored drugs at warehouses in Aurora and Batavia, distributed drugs to wholesale customers, and collected cash proceeds on behalf of the Guerrero Unidos, the charges allege.
“This operation strikes at a major Mexican drug trafficking organization that is alleged to have routinely distributed large quantities of heroin and cocaine throughout the Midwest,” said Dennis Wichern, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration. “These arrests will have a significant impact on the supply and distribution of heroin and cocaine in the Chicago area,” he said.
Vega and Figueroa appeared yesterday in Federal Court in Oklahoma and were ordered transferred to Chicago in custody. Arrested in the Chicago area yesterday were: ELISEO BETANCOURT PEREIRA, 50, of Aurora; ROBERTO SANCHEZ, 39, of Chicago; and ISAIAS MANDUJANO, 29, of Rockford. Those three appeared before U.S. Magistrate Judge Sidney I. Schenkier and remain in federal custody pending detention hearings that were scheduled for Thursday and Friday.
Arrest warrants remain outstanding for: WILFREDO FLORES-SANTOS, 43, of North Aurora; JOSE RODRIGUEZ, 31, of Chicago; and ARTURO MARTINEZ, 33 or 34, who is believed to be in Mexico.
According to the complaint affidavit, on Aug. 21, 2013, law enforcement officers discovered and seized approximately $200,000 in cash during a traffic stop of an individual in Chicago. A subsequent search of the individual’s residence yielded 12 kilograms of heroin and nine kilograms of cocaine, as well as an additional $231,000, all of which the individual had delivered and picked up on behalf of a courier for Vega’s organization. On June 7 of this year, approximately 25 kilograms of heroin and 60 grams of cocaine were seized from Rodriguez after Figueroa and Betancourt allegedly distributed the heroin to him. Three days later, approximately 31 kilograms of heroin were seized from another individual allegedly supplied by Figueroa and Betancourt.
All of the defendants except Mandujano were charged with conspiring between August 2013 and November of this year to possess and distribute a kilogram or more of heroin. The charge carries a mandatory minimum sentence of 10 years and a maximum of life in prison and a $10 million fine. Mandujano was charged with possession with intent to distribute 100 grams of more of heroin in April of this year, which carries a mandatory minimum sentence of five years and a maximum of 40 years in prison and $5 million fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The arrests and charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Mr. Wichern, of the DEA. Police departments in Aurora, North Aurora, Addison, Arlington Heights, Chicago, Oak Lawn, Oswego, and Prospect Heights assisted in the investigation, as well as the Cook County Sheriff’s Police and the Internal Revenue Service Criminal Investigation Division. The investigation was conducted under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF).
The government is being represented by Assistant United States Attorneys Nicole Kim and Georgia Alexakis.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
East McKeesport Man Sentenced to 10 Years in Prison in Large-Scale Cocaine Trafficking RingRead the Press Release
PITTSBURGH – An Allegheny County man has been sentenced in federal court to 120 months (10 years) imprisonment followed by five years supervises release on his conviction of violating federal drug trafficking laws, United States Attorney David J. Hickton announced today.
United States District Judge Terence F. McVerry imposed the sentence on Derrick Knox, 33, of East McKeesport, Pa.
According to information presented to the court, from in and around January 2011 and continuing thereafter to in and around June 2012, Knox conspired with others to distribute and possess with intent to distribute between 500 grams and two kilograms cocaine. Additionally, Knox sold cocaine to an undercover agent on four separate occasions between January 2011 and April 2011. Finally, during the execution of a search warrant at Knox’s residence on April 13, 2011, agents discovered approximately two ounces of cocaine, and $4,700 in U.S. currency.
The prosecution of Knox was the result of a long-term investigation that involved wiretaps on cell phones utilized by several members of the conspiracy. At the conclusion of the investigation, 20 defendants (including Knox) were charged in a large-scale cocaine conspiracy that operated between Warren, Ohio, and Washington, Pa. All 20 defendants have since pleaded guilty. The same investigation also resulted in the prosecution of 10 defendants charged in a large-scale heroin conspiracy that operated between Detroit, Michigan, and Washington, Pennsylvania. All 10 defendants have likewise pleaded guilty.
Assistant United States Attorneys Charles A. Eberle and Barbara K. Doolittle prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Pennsylvania State Police for the investigation leading to the successful prosecution of Knox.
Detroit man convicted by federal jury for oxymorphone traffickingRead the Press Release
Drugs Were Concealed in a Box of Laundry Detergent
Huntington, W.Va. – United States Attorney Booth Goodwin announced that Kendall Lamar Spears, 35, of Detroit, Michigan, was convicted today of possessing oxymorphone with the intent to distribute it. The conviction follows a two-day jury trial in federal court in Huntington. The evidence presented at the trial established that in November of 2012, Spears paid a Huntington couple to drive him to Detroit under the pretext of visiting family. The following day, Spears left the couple for a brief time and returned with bags from a Dollar Store. On the return trip from Detroit to Huntington, the van was stopped by law enforcement officers based on a tip that it was carrying illegal drugs. Spears was seated in the back of the van. A trained law enforcement drug dog sniffed the van and indicated that narcotics were likely present. Officers then searched the van and discovered 304 15 mg oxymorphone pills. The pills were hidden in a detergent box in one of the bags carried by Spears.
Spears faces up to 20 years imprisonment and a $1 million fine when he is sentenced on March 3, 2015.
The case was investigated by the Huntington Violent Crime and Drug Task Force and the Huntington Police Department. The case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Dallas Airmotive Inc. Admits Foreign Corrupt Practices Act Violations and Agrees to Pay $14 Million Criminal PenaltyRead the Press Release
Dallas Airmotive Inc., a provider of aircraft engine maintenance, repair and overhaul services based in Grapevine, Texas, has admitted to violations of the Foreign Corrupt Practices Act (FCPA) and agreed to pay a $14 million criminal penalty to resolve charges that it bribed Latin American government officials in order to secure lucrative government contracts.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge Diego Rodriguez of the FBI’s Dallas Division made the announcement.
A criminal information, filed today in federal court in the Northern District of Texas as part of the deferred prosecution agreement, charges Dallas Airmotive with one count of conspiring to violate the FCPA and one count of violating the FCPA’s anti-bribery provisions.
According to Dallas Airmotive’s detailed admissions in the statement of facts accompanying the deferred prosecution agreement, between 2008 and 2012, the company bribed officials of the Brazilian Air Force, the Peruvian Air Force, the Office of the Governor of the Brazilian State of Roraima, and the Office of the Governor of the San Juan Province in Argentina. Dallas Airmotive used various methods to convey the bribe payments, including by entering into agreements with front companies affiliated with foreign officials, making payments to third-party representatives with the understanding that funds would be directed to foreign officials, and directly providing things of value, such as paid vacations, to foreign officials.
This case is being investigated by the FBI’s Dallas Field Office and is being prosecuted by Trial Attorney David M. Fuhr of the Criminal Division’s Fraud Section. Assistant U.S. Attorney Michael C. Elliott from the U.S. Attorney’s Office for the Northern District of Texas has provided assistance in the case. The department acknowledges the assistance of law enforcement counterparts in Brazil. The Criminal Division’s Office of International Affairs also provided significant assistance.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Coombe Becomes First Female Federal Criminal Chief for Northern District of New York; Clymer Becomes Appellate ChiefRead the Press Release
Albany, New York – Elizabeth C. Coombe has been named the Chief of the Criminal Division of the United States Attorney’s Office for the Northern District of New York, announced United States Attorney Richard S. Hartunian. Ms. Coombe succeeds Steven D. Clymer, who is becoming the Appellate Chief for the U.S. Attorney’s Office.
United States Attorney Hartunian said: “Beth Coombe is an outstanding leader and accomplished trial lawyer, with the extensive experience, breadth of perspective, unflinching integrity, and sound judgment needed to address today’s significant law enforcement challenges.”
Ms. Coombe is the seventh Chief of the Criminal Division and the first female to hold the post since it was created about twenty-three years ago. Ms. Coombe has served as the Deputy Chief of the Criminal Division since 2012. She became an Assistant U.S. Attorney in the District of Columbia in 1998, serving in the appellate, general felony, and grand jury sections before being assigned to the fraud and public corruption section. She transferred to the Albany Office of the Northern District of New York in 2003, where she has focused on public corruption and white collar crime. She has also served as a team leader and as a member of the Joint Terrorism Task Force.
Ms. Coombe graduated from the University of Michigan Law School cum laude in 1992 and Hamilton College summa cum laude in 1989. Before becoming an Assistant U.S. Attorney, Ms. Coombe worked as a trial attorney in the Court of Claims and Federal Circuit Section of the Department of Justice. She also worked as a staff attorney for the Enforcement Division of the Securities and Exchange Commission and clerked for the Honorable Diana E. Murphy, then Chief United States District Court Judge for the District of Minnesota.
In the Northern District, Ms. Coombe has tried a number of high profile cases, including an honest services fraud case against the former New York State Senate Majority Leader; a $30 million dollar investment fraud case against the owners of a securities broker-dealer in Albany (McGinn Smith), leading to imprisonment sentences of 15 and 10 years; and United States v. Yassin Aref (a local Imam) and Mohammed Hossain, leading to sentences including imprisonment for 15 years for conspiracy to commit money laundering, conspiracy to provide material support to terrorism, and related offenses. She has also tried extortion, tax fraud, structuring, and embezzlement cases. This year, Ms. Coombe received a Director’s Award for Superior Performance.
Regarding Mr. Clymer, United States Attorney Hartunian said: “Steve Clymer has served the District with great distinction as Criminal Chief. His extraordinary legal mind, attention to detail, and demonstrated excellence as a leader, litigator, and educator will make him a superb Appellate Chief.”
Mr. Clymer has served as the Chief of the Criminal Division since 2010. Mr. Clymer first became an Assistant U.S. Attorney in the Central District of California in 1987, where he worked until 1995 and 2003 - 2005, serving as Chief of the Criminal Division, Senior Litigation Counsel, Chief of the Major Crimes Section, Deputy Chief of the Narcotics Section, and Chief of Training. A graduate of Cornell University (magna cum laude, 1980) and Cornell Law School (magna cum laude, 1983), Mr. Clymer served as Associate Professor of Law at Cornell Law School 1995 – 2000, Assistant Professor of Law 2001 - 2005, and Professor of Law 2005-10, and has served as an Adjunct Professor of Law since 2010. Mr. Clymer was an Assistant U.S. Attorney in the Northern District of New York 1998 - 2000, served as a Special Assistant U.S. Attorney 2001 - 2003 and 2005 - 2007, returned to the Office in 2007, and became Deputy Chief of the Criminal Division in 2008. Before becoming an Assistant U.S. Attorney, Mr. Clymer was an Assistant District Attorney for the Commonwealth of Pennsylvania (Philadelphia County) 1983 - 1986.
Mr. Clymer’s notable cases have included prosecutions of: the LAPD police officers responsible for use of unlawful force when arresting Rodney King; two men who killed two DEA agents and wounded a third; a case arising from Operation Polar-Cap, the largest money-laundering investigation in United States history, resulting in the laundering of over $100 million per year of cocaine proceeds; two cases arising from multi-defendant conspiracy to smuggle in excess of 60 tons of Thai marijuana to the United States by use of large ocean-going vessels; a Syracuse area physician who was defrauding Medicare and private insurers by charging over $10,000 for patient physical examinations; a Syracuse heart surgery practice for filing false claims to Medicare about use of second physician in open heart surgeries; executives at two Central New York insurance companies in a scheme to defraud Medicare; and an Albany area pain management physician who submitted false claims to Medicare and private health insurance companies and had nurses illegally dispense prescriptions for schedule II controlled substances without physician involvement.
United States Attorneys serve as the nation's principal litigators, under the direction of the Attorney General and the U.S. Department of Justice. There is one United States Attorney for each judicial district in the United States and its territories. The primary statutory responsibilities of United States Attorneys are the prosecution of federal criminal cases, the prosecution and defense of civil cases in which the United States is a party, and the collection of debts owed the federal government which are administratively uncollectible. The U.S. Attorney’s Office for the Northern District of New York prosecutes about 500 criminal cases each year.
Richard S. Hartunian took office as United States Attorney on January 3, 2010. The other current leadership of the Office is:
First Assistant U.S. Attorney: Grant C. Jaquith
Chief, Criminal Division: Elizabeth C. Coombe
Chief, Appellate Division: Steven D. Clymer
Chief, Civil Division, and Chief, Albany Office: Thomas Spina, Jr.
Executive Assistant U.S. Attorney for Public and Community Affairs: John G. Duncan
Senior Litigation Counsel: Edward R. Broton
Chief, Syracuse Office and Project Safe Childhood Coordinator: Lisa M. Fletcher
Narcotics Chief and Lead Organized Crime Task Force Attorney: Daniel Hanlon
Deputy Chief, Civil Division: William F. LarkinThe Northern District of New York is comprised of thirty-two counties in upstate New York, covering an area of over 30,000 square miles that is home to about 3.4 million people. The United States Attorney has offices in Syracuse, Albany, Binghamton, and Plattsburgh.
Contractor Admits Conspiring to Rig Selection Process for Union City Community Development Agency ProjectsRead the Press Release
NEWARK, N.J. – A Union City contractor today admitted conspiring to rig the contractor selection process for projects run by the Union City Community Development Agency (UCCDA), causing losses of at least $70,000, U.S. Attorney Paul J. Fishman announced.
Joseph Lado, 66, of Fort Lee, New Jersey, pleaded guilty to an information charging him with one count of conspiring with agents of the UCCDA and a Jersey City, New Jersey, contractor to obtain money from the agency by fraud. Lado entered his guilty plea before U.S. District Judge William H. Walls in Newark federal court.
According to documents in this case and statements made in court:
Between June 2007 and September 2010, Lado owned Lado Construction in Union City. There were two individuals (Inspector 1 and Inspector 2) at the UCCDA, a government agency that received funds from the U.S. Department of Housing and Urban Development under a federal block grant. The funding was used for home improvement projects and sidewalk replacement projects, among other things.
Lado conspired with another individual who owned a paving contracting company in Jersey City, New Jersey (the Contractor), Inspector 1 and Inspector 2 to rig the competitive process by submitting false and materially misleading proposals for contracts to perform sidewalk replacement and residential rehabilitation. The process was rigged to favor of certain contractors, including Lado Construction. Lado caused the Contractor to provide Lado with phony proposals from the Contractor’s company that were higher than Lado’s own proposals. He also caused the contractor to provide Lado with blank proposal forms from the Contractor’s company that Lado later completed with the help of another, listing amounts that were higher than Lado Construction’s proposals for the same work. Under both of those scenarios, Lado would then submit the Contractor’s phony higher-priced proposals and his own to the UCCDA in order to obtain projects, and ultimately, HUD grant funds, from the UCCDA for the completion of the projects. Lado would also, at the request of Inspector 1 and Inspector 2, provide both inspectors with phony proposals for amounts higher than his competitors for projects that the inspectors had already decided to award to other contractors.
The conspiracy charge to which Lado pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Lado is scheduled to be sentenced on March 24, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Amy Luria and Senior Litigation Counsel J Imbert of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
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Defense counsel: John M. Vazquez Esq., Roseland, N.J.
Lado, Joseph Information
Community Leaders Unveil Action Plan to Combat Drug AbuseRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs Specialist
WHEELING, WEST VIRGINIA – Community leaders in Northern West Virginia have embraced an innovative, collaborative approach to combat drug abuse and overdose deaths in the region, First Judicial Circuit Judge David J. Sims and United States Attorney William J. Ihlenfeld, II, announced today.
A diverse group of local thought leaders gathered at Wheeling Hospital today to present the Ohio Valley Addiction Action Plan, a comprehensive strategy designed to address a growing drug problem. According to Ihlenfeld, the plan is “unique because it combines expertise from education, law enforcement, healthcare, news media, business, legislative, treatment, and recovery.”
U.S. Attorney Ihlenfeld and Judge Sims served as Co-Chairs of a working group that has been meeting since August 2014. The working group incorporated eight subcommittees, led by the following individuals:
• Dr. Angelo Georges, M.D., Chief Medical Officer, Wheeling Hospital: Medical Subcommittee, • Dr. Dianna Vargo, Superintendent, Ohio County Schools: Education Subcommittee, • Erikka Storch, W.Va. House of Delegates: Business & Legislation Subcommittee, • Sheriff Chuck Jackson, Brooke County Sheriff’s Department: Law Enforcement Subcommittee, • Mark A. Games, President/CEO, Northwood Health Systems: Mental Health/Substance Abuse Treatment Subcommittee, • Terry Stemple, Chief Executive Officer, Healthways, Inc.: Mental Health/Substance Abuse Treatment Subcommittee, • James Lee, Retired Chief Probation Officer, First Judicial Circuit: Community Corrections Subcommittee, • Brenda Danehart, News Director, WTRF: News Media Subcommittee; • Patti Barnabei, Founder, Never Alone West Virginia: Support Groups Subcommittee
“The number of Ohio Valley residents abusing heroin and other opioid drugs is staggering,” said U.S. Attorney Ihlenfeld. “This is not simply a law enforcement problem; we are facing a true public health crisis. Our plan starts with more impactful education that will resonate with our young people. But we also need to engage the community at all levels to choke off the supply of heroin, to prevent people from abusing opioid drugs, and to ultimately build an adequate infrastructure to treat individuals that do become addicted.”
Per Ihlenfeld, the plan presented today, which targets Ohio, Brooke, and Hancock Counties, is merely the first step in a much larger initiative. Ihlenfeld plans to create similar working groups throughout Northern West Virginia.
Anyone interested in additional information on the effort to combat drug abuse is encouraged to contact the United States Attorney’s Office for the Northern District of West Virginia at (304) 234-0100. Continuing updates will also be available through the U.S. Attorney’s official Twitter page @NDWVnews.
A complete copy of the Ohio Valley Addiction Action Plan is available here.
Cleveland Woman Sentenced to Nearly Four Years in Prison for Tax CrimesRead the Press Release
A Cleveland woman was sentenced to nearly four years in prison for her role in a conspiracy that useed false identities, including those of people incarcerated, to file nearly $2 million worth of false tax claims, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge of IRS Criminal Investigation, Cincinnati Field Office.
Gwendolyn N. White, 32, was also ordered to pay $342,365 in restitution. She was previosuly found guilty of one count of conspiracy to file false claims for income tax refunds with the IRS and on ten counts of filing false claims for refunds with the IRS.
“This defendant knowingly filed false income-tax returns in the names of people whose identities were stolen," Dettelbach said. "She tried to game the system to enrich herself.”
“The defendants who perpetrated this scheme systematically defrauded the government and the taxpaying public,” Enstromm said. “At the IRS, protecting taxpayer money is a matter we take very seriously. IRS Criminal Investigation will continue to vigorously pursue those who unjustly enrich themselves by preparing false claims for refunds.”
Kenneth White, 48, of Cleveland, is scheduled to be sentenced in February. He recruited people to use as claimants on some false tax returns, often with the promise of substantial refunds. White also obtained names, Social Security numbers and other personal identifiers of other people to use as claimants, including people in prison or jail. In some cases, this was done without the knowledge or consent of these other people, according to court records.
Gwendolyn White, at the direction of Kenneth White and for a fee, prepared and electronically filed 10 false income tax returns for the year 2008 in the name of the claimants. The total amount claimed in the returns was approximately $1,995,687, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Vasile Katsaros following an investigation by the Internal Revenue Service – Criminal Investigations.