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Friday 24 October 2014
Colorado Man Charged with Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that an Aurora, Colorado, man has been indicted by a federal grand jury for Possession with Intent to Distribute a Controlled Substance.
Nathan Van Weeda, age 43, was indicted on October 15, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 15, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, a mandatory 3 years up to life of supervised release, and $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about October 1, 2014, Weeda knowingly and intentionally distributed and possessed with intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, and marijuana, a Schedule I controlled substance.The charges are merely an accusation and Weeda is presumed innocent until and unless proven guilty.
The investigation is being conducted by the South Dakota Highway Patrol and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Weeda was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Chillicothe Man Pleads Guilty to Bank Embezzlement and to Filing False Income Tax Returns with the IRSRead the Press Release
COLUMBUS, OHIO – Joseph P. Molnar, 50, of Chillicothe, Ohio, pleaded guilty one count of embezzlement from a financial institution and to one count of willfully filing a false federal income tax return with the Internal Revenue Service (IRS). Molnar faces a maximum prison term of 30 years and a fine of up to $1,000,000.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office, and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Division, announced the guilty plea entered before U.S. District Judge Algenon L. Marbley.
According to court documents, between July 2005 and July 2012 Joseph Molnar was an employee of Huntington National Bank. Specifically, Molnar was a Managing Director for a Huntington subsidiary, Huntington Community Development Corporation. Molnar misapplied and embezzled approximately $4,076,189.44 of Huntington National Bank’s funds by falsely representing that he was paying “placement fees” or “advisory fees” for property management companies as part of several affordable housing property deals that had closed with Huntington National Bank. Instead, Molnar withdrew the funds under false pretenses and placed that money into his own accounts for his own personal use.
In addition, Molnar omitted these funds as income on his own income tax returns. Molnar filed a false income tax return with the IRS for the 2009 income tax year by falsely stating that he had an adjusted gross income of $94,358, when in actuality his income was approximately $1,226,103.16.
For 2008 through 2012 income tax years, Molnar underreported his income by a combined total of $3,054,064.44, which has resulted in total tax due and owing in the amount of approximately $987,011.66 to the IRS.
Molnar was release on bond pending his sentencing, for which a date was not set.
“The FBI is committed to identifying and holding accountable those executives and employees of federally insured financial institutions who violate their fiduciary responsibilities and illegally divert the trusted deposits of America's banking customers for their own personal use,” said Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Division.
“This investigation uncovered a multi-million dollar embezzlement scheme laced with a web of financial lies.” said Kathy A. Enstrom, Special Agent in Charges, IRS Criminal Investigation, Cincinnati Field Office. “If you are thinking about participating in a fraudulent tax scheme, including failing to report all forms of income, you should stop in your tracks and simply look at the consequences of taking the next step.”
U.S. Attorney Stewart commended the investigation by the IRS and FBI, Assistant United States Attorneys Daniel A. Brown and Laura M. Fulton, who are prosecuting this case.Cedar Rapids Businessman IndictedRead the Press Release
William B. Aossey, Jr., 73, of Cedar Rapids, Iowa, has been charged with one count of conspiracy to make false statements, sell misbranded meat, and commit mail and wire fraud; seven counts of making or causing false statements to be made on export applications; seven counts of wire fraud; three counts of money laundering; and one count of conspiracy to commit money laundering. The charges are contained in an Indictment filed last evening in United States District Court in Cedar Rapids. The indictment also contains two forfeiture allegations for proceeds and property involved in some of the offenses.
The conspiracy charge is punishable by up to five years imprisonment; each count of making a false statement on an export application is punishable by up to three years imprisonment; each count of wire fraud is punishable by up to twenty years imprisonment; and each count of money laundering, including the money laundering conspiracy, is punishable by up to twenty years imprisonment. A fine of up to $250,000 may also be imposed on each count, along with a term of supervised release.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by the Department of Agriculture Office of Inspector General, and the Internal Revenue Service.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-00116-LRR.
Canistota Woman Sentenced for Tax FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that Veronica Fairchild, age 42, of Canistota, South Dakota, and Okaboji, Iowa, who was previously found guilty of four counts of tax fraud, was sentenced on October 22, 2014.
Fairchild was sentenced to 33 months in custody and ordered to pay over $214,000 in restitution to the U.S. Department of Treasury, Internal Revenue Service, for unpaid taxes.
Fairchild was indicted by a federal grand jury on July 9, 2013. The investigation stemmed from Fairchild’s late filing of her 2005 through 2008 income tax returns in 2010. Bank records revealed she had failed to claim over $850,000 in income over the four-year period of time. Fairchild claimed the unreported income she received from performing private shows as an exotic dancer was a gift.
A jury trial commenced in Sioux Falls on June 24, 2014, and completed on June 26, 2014, with the jury convicting Fairchild on all four counts of the Indictment.
“The sentenced handed down in this case should make things very clear. No matter your rationale and no matter what you do for a living, if you evade paying your fair share of taxes, you’ll face the consequences,” said U. S. Attorney Johnson.
“IRS Criminal Investigation is diligent when it comes to enforcing the laws directed at those who attempt to defraud our nation’s tax system," said Karl Stiften, Acting Special Agent in Charge of the St. Paul Field Office. “The sentence of 33 months in a federal prison shows how seriously the courts take federal tax crimes. Together with the Department of Justice, we will continue to investigate and prosecute those who violate our tax system.”
This case was investigated by the Internal Revenue Service Criminal Investigation Division. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Fairchild will self-report to the U.S. Marshals Service in November of 2014 to begin serving her sentence.
California Man Charged with Identity Fraud SchemeRead the Press Release
The United States Attorney’s Office announced the return of an indictment yesterday by a federal grand jury in Williamsport charging Phil Nguyen of Garden Grove, California, with aggravated identity theft, and related offenses, in connection with a scheme to fraudulently obtain luxury wrist watches from jewelry stores in State College, Pennsylvania, and in New York, New Jersey, and Nevada.
According to United States Attorney Peter Smith, the indictment alleges that from January 2014 through July 20, 2014, Nguyen used counterfeit California driver’s licenses in the names of other persons to purchase and attempt to purchase Rolex and Omega watches from Kranich’s Jewelers in State College and four other jewelry stores in Orchard Park, New York, Marlton and Wayne, New Jersey, and Las Vegas, Nevada. According to the indictment, Nguyen also used counterfeit California driver’s licenses and fraudulent credit cards in submitting on-line credit applications to Wells Fargo, GE Capital Retail Bank, and TD Bank to pay for the watches.
Nguyen, age 67, faces a combined maximum penalty of 67 years in prison, a fine of $2.25 million, and a supervised release term of five years.
The case was investigated by the Federal Bureau of Investigation with the assistance of the Patton Township Police Department and the Centre County District Attorney’s Office. Prosecution is assigned to Assistant United States Attorney George J. Rocktashel.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Brunswick Man Sentenced Prison for Theft of Social Security and Medicare BenefitRead the Press Release
Brunswick, GA: Jerry Barnett, 64, of Brunswick, Georgia, was sentenced this week by United States District Court Chief Judge Lisa Godbey Wood to serve 5 months in prison and 5 months’ house arrest, to repay $82,864 in stolen proceeds, and to forfeit an additional $75,000 after earlier pleading guilty to stealing just over $82,000 in Social Security and Medicare benefits.
According to evidence presented at the guilty plea and sentencing hearings, Barnett was deemed unable to work and approved to receive disability benefits from the Social Security Administration (SSA) in 2005. Barnett returned to work in May 2007, however, and concealed his employment income from SSA by accepting payment in his spouse’s name. When offered an opportunity to correct his status in March 2013, Barnett falsely denied he had any employment income and certified that he remained unable to work. From May 2007 until October 2013, Barnett wrongfully collected $75,161 in disability payments and $7,703.18 in Medicare benefits. As part of his sentence, Barnett was ordered to pay restitution in the amount of $82,864.18 to the SSA and Medicare. In addition to restitution, the Court ordered Barnett to forfeit another $75,000.00 to the U. S. Government.
United States Attorney Edward Tarver stated, “Federal benefits programs are meant to help those who are truly in need. Our Office will continue to aggressively prosecute federal program fraud to recover the taxpayers’ money and ensure it is put to its proper use.”
Thomas Caul, Special Agent in Charge for the Social Security Administration, Office of the Inspector General, Atlanta Field Division (Southeast), said, “The Office of the Inspector General has no higher priority than the investigation and prosecution of those who violate the public trust. I’m grateful that the U. S. Attorney’s Office shares our determination to ensure the integrity of SSA’s programs.”
The case was investigated jointly by the Office of the Inspector General for the Social Security Administration and the Office of the Inspector General for Health and Human Services. Assistant United States Attorney Jennifer G. Solari prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Albion Man Pleads Guilty to Methamphetamine OffenseRead the Press Release
Follow @SDILNewsDillion Wayne Bailey, 30, of Albion, Illinois, pled guilty today in United States District Court in Benton to an indictment charging him with one count of possessing with intent to distribute methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on July 8th, alleged that the offense occurred on June 13th in White County. The charges stemmed from a traffic stop conducted by the Grayville Police Department during which Bailey was found to be in possession of 2 ounces of crystal methamphetamine, digital scales, drug packaging material, and several glass pipes used to smoke methamphetamine. Bailey was also in possession of $2131 in cash.
Sentencing was set for February 18, 2015, at 1:30 p.m. at the United States Courthouse in Benton. At that time, Bailey faces up to 20 years in federal prison, a $1 million fine, and 3 years to life on supervised release following his incarceration.
Bailey has been held without bond in the custody of the United States Marshal since his arrest on federal charges in July. He was returned to the custody of the Marshal to await sentencing.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and the Grayville Police Department with the assistance of the Edwards County Sheriff’s Department whose drug detection dog was utilized during the traffic stop.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Alabama Woman Sentenced to Prison for Stolen Identity Refund FraudRead the Press Release
A Dothan, Alabama, woman was sentenced to serve 34 months in prison by the Honorable Judge Myron H. Thompson of the U.S. District Court for the Middle District of Alabama in connection with her role in committing stolen identity tax refund fraud, announced Acting Deputy Assistant Attorney General Larry Wszalek of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama.
On July 16, a jury found Nina Macena, 32, guilty of conspiring to defraud the government through the filing of false tax returns, three counts of wire fraud and three counts of aggravated identity theft. U.S. District Court Judge Thompson also ordered Macena to pay restitution in the amount of $109,480.
According to court documents and evidence from the trial, Macena provided stolen identities to Ivory Bolen, also of Dothan, who used the identities to file false tax returns that fraudulently requested refunds from the Internal Revenue Service (IRS). Bolen would attempt to have the refunds deposited onto prepaid debit cards, which would be mailed to addresses controlled by Bolen and Macena. Macena obtained the identities from Roderick Neal, a former bail bondsman in Dothan, who had access to the personal information of individuals who had been detained at the Dothan City Jail. Both Bolen and Neal previously pleaded guilty to their involvement in the scheme. Altogether, Bolen filed tax returns claiming more than $300,000 in refunds using the stolen identities that Macena provided, butthe IRS successfully stopped a number of the fraudulent returns. Macena was ultimately convicted by the jury on all counts in the indictment.
Macena testified in her own defense at trial and admitted that she had obtained information from Neal for Bolen, but claimed that she was unaware of the nature of the information. She also testified that she stored items for Bolen in her storage unit but that she was unaware of what she was storing. At sentencing, the judge found that her testimony was not credible and consequently increased her prison time.
This case was investigated by special agents of the IRS-Criminal Investigation. Trial Attorneys Jason Poole and Charles M. Edgar Jr. of the Tax Division prosecuted the case with the assistance of the U.S. Attorney’s Office for the Middle District of Alabama.
Additional information about the Tax Division and its enforcement efforts may be found at the division website.
Additional Charges for Franklinville, N.J., Man Who Allegedly Used Fraudulent Invoices to Steal from Schools and CollegesRead the Press Release
Charged Last Week in Similar Scheme
CAMDEN, N.J. – A Franklinville, New Jersey, man was arrested today by federal agents of the U.S. Postal Inspection Service – for the second time this month – for allegedly mailing fraudulent invoices for non-existent advertisements to colleges and trade schools throughout the United States, U.S. Attorney Paul J. Fishman announced.
Robert S. Armstrong, 44, was charged by superseding complaint with two counts of mail fraud. He appeared this afternoon before U.S. Magistrate Judge Karen M. Williams in Camden federal court for an initial appearance on the superseding complaint. Armstrong had previously been arrested on Oct. 16, 2014, for allegedly committing a similar mail fraud scheme.
According to documents filed in this case:
Postal inspectors learned Armstrong – while out on bail following his Oct. 16, 2014, court appearance on the initial charge – was continuing to ask for and pick up mail in the name of one of his companies, Scholastic School Supply. On Oct. 21, 2014, he picked up mail from a Post Office box in Malaga, New Jersey, which he had opened in the names of Scholastic and another of his companies, The Trend Publishing. Armstrong had retrieved mail, opened it and discarded what appeared to be two check stubs bearing the names of two colleges and written in the amount of $495 payable to Trend. A postal employee sent the discarded check stubs to postal inspectors.
A postal inspector contacted the two colleges listed on the check stubs and received a copy of the invoice from Trend addressed to Victim College 1. It appeared very similar in format to the Scholastic invoices except that it sought payment for what is believed to be advertising for the college: $495 for a 5-inch by 8-inch glossy ad to be placed in the “College Edition (Fall 2014 Edition).” The invoice included a telephone number and a Federal Employer Identification Number (FEIN) for Trend. As with the Scholastic scheme, both numbers were phony.
The dean of finance from the second college listed on the check stubs said his office had mailed a check for $495 to Trend and that no one in the purchasing department had any knowledge of ordering any advertisement from the company.
On Oct. 22, 2014, the postal inspector received bank records from Wells Fargo Bank for accounts opened by Armstrong, including an account in the name of Trend. From July 2014 through August 2014, Armstrong deposited 59 checks for $495 each from various colleges and trade schools throughout the United States – including a law school and a medical school – for a total of $29,205. Bank records revealed that he deposited additional $495 checks from various businesses, several of which appear to be related to automobile sales and service.
Employees at three additional colleges confirmed to postal inspectors that they had received invoices from Trend seeking payment for $495 for similar advertising and they mailed payments to Trend. They also said they did not know what the “College Edition (Fall 2014 Edition)” was.
On Oct. 16, Armstrong was arrested and charged with mail fraud for allegedly mailing more than 73,000 fraudulent invoices for non-existent workbooks to schools throughout the United States.
Each count of mail fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Armstrong or twice the gross losses to the victims of his offense.
U.S. Attorney Fishman credited law enforcement officers of the U.S. Postal Inspection Service, under the direction of Inspector in Charge David Bosch in Philadelphia; the Gloucester County Prosecutor’s Office, under the direction of Prosecutor Sean F. Dalton; the Gloucester County Office of Consumer Protection, under the direction of Harold Spence, Director of Consumer Affairs; the Washington Township Police Department, under the direction of Raphael Muniz, Chief of Police; and the Franklin Township Police Department, under the direction of Mike Rock, Chief of Police, with the continuing investigation leading to today’s arrest.
Individuals with any information about possible fraudulent conduct may call postal inspectors at 877-US MAIL 5 (877-876-2455).
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden.
The charges and accusations in the complaint are merely accusations, and the defendant is presumed innocent unless and until convicted.
14-386
Defense counsel: Rocco C. Cipparone Jr., Esq. Haddon Heights, N.J.
Armstrong, Robert, Superseding Complaint
ASPCA Assists U.S. Attorney's Office, FBI, Columbia Police in South Carolina Drug, Dog Fighting InvestigationRead the Press Release
Contact Person: Jane Taylor (803) 929-3000
Columbia, South Carolina ---- At the request of the U.S. Attorney’s Office for the District of South Carolina (USASC) and the Federal Bureau of Investigation (FBI), the ASPCA® (American Society for the Prevention of Cruelty to Animals) is assisting with a federal operation involving drugs and dog fighting in and around the Columbia, S.C. area.
In early 2013, as a result of community complaints, the FBI’s Columbia Violent Gang Task Force (CVGTF) – comprised of agents of the FBI, the Columbia Police Department, the Richland County Sheriff’s Office, South Carolina Law Enforcement Division (SLED) and the South Carolina National Guard -- initiated an investigation into the drug activity occurring in and around a downtown Columbia neighborhood. Agents obtained evidence about a drug organization that was allegedly peddling cocaine and crack cocaine in the area, and that were also engaged in robberies and other acts of violence. During the course of the investigation, agents learned that the individual who supplied cocaine to the organization was also involved in purchasing, breeding, and fighting dogs.
A search warrant was executed Friday during which agents seized a dozen dogs from a property in Gaston, SC. Upon arriving at the scene, ASPCA responders found dogs exhibiting scars and injuries commonly associated with dog fighting. The dogs were found chained and anchored to car axles, with trash barrels being used as makeshift shelters. Adult dogs and puppies were found severely emaciated and dehydrated, and the remains of deceased dogs were also discovered on the premises, along with dog fighting paraphernalia. This was the second warrant executed on this property this month.
On October 1, agents searched the residence of the alleged drug supplier for evidence of his involvement in drug trafficking and dog fighting. At that time, agents seized 35 dogs, along with drugs, guns, and cash. The Lexington County Animal Shelter provided daily care for the seized dogs until the ASPCA was able to transport those dogs to a temporary shelter in an undisclosed location. The ASPCA managed the removal and transport of dogs involved in the investigation, and will continue to oversee forensic evidence collection, as well as the dogs’ veterinary care and sheltering.
Columbia Police Chief Skip Holbrook, who has made it a priority to protect innocent citizens of Columbia from gangs and gang activity, said, “It should come as no surprise that gangs, drug dealing, and violence often go hand in hand. However, gangs are often involved in other organized criminal activity. In this case, that criminal activity is dog fighting.”
“Organized dog fighting is a highly lucrative and brutal crime where dogs are forced to fight often to their death,” said Tim Rickey, vice president of ASPCA Field Investigations and Response. “The truth is that dog fighting happens all over the country, but it’s an underground activity that goes mostly unnoticed by the public. Dog fighting is often linked to other illegal activities including drugs and gambling, and we’re pleased to work alongside state, federal and local law enforcement agencies in ending these dogs’ suffering and seeing justice served.”
On October 21, a federal grand jury returned an Indictment charging Eric Dean Smith, 41, of Gaston, and seven others in a conspiracy to traffic cocaine and crack cocaine. The others charged were Gerald Montez Burris, 46, Amos Donnell Jones, 34, Stephoni Vernard Sumter, 28, Tony L. Gunter, 36, Travis Santale Sulton, 31, Dion W. Jones, 31, and Travis Leon Gilbert, 27, all of Columbia. The dogfighting investigation continues.
The ASPCA will provide daily care for the dogs at the temporary shelter until custody is determined by the court. PetSmart Charities® provided supplies including pet crates, toys and treats to support the rescue operation.
Dog fighting is a felony in all 50 states and the District of Columbia. Earlier this year, the Farm Bill was signed by President Obama, making it a federal offense to attend an organized animal fight and imposing additional penalties for bringing a minor to a fight.
About the ASPCA®
Founded in 1866, the ASPCA® (The American Society for the Prevention of Cruelty to Animals®) is the first animal welfare organization in North America and serves as the nation’s leading voice for animals. More than two million supporters strong, the ASPCA’s mission is to provide effective means for the prevention of cruelty to animals throughout the United States. As a 501(c)(3) not-for-profit corporation, the ASPCA is a national leader in the areas of anti-cruelty, community outreach and animal health services. For more information, please visit www.ASPCA.org, and be sure to follow the ASPCA on Facebook, Twitter, and Pinterest.
All charges in the indictment are merely allegations, and the defendants remain innocent unless and until proven guilty beyond a reasonable doubt.40 Charged in Pittsburgh-Area Drug Trafficking ConspiraciesRead the Press Release
PITTSBURGH - After a lengthy investigation into drug trafficking in the Homewood section of the City of Pittsburgh and other communities in the Greater Pittsburgh area, 40 people have been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today. On Oct. 21, 2014, a federal grand jury issued one superseding indictment and five indictments, all related to one another, naming 35 residents of Western Pennsylvania, one resident of Cleveland, Ohio, two residents of Clarksburg, W.Va., and two residents of Southern California.
"The law-abiding, hard-working people of Homewood deserve safe streets and peaceful neighborhoods, stated U.S. Attorney Hickton. “The goal of this investigation to disrupt and ultimately dismantle these gang-related drug distribution networks in Pittsburgh, in Western Pennsylvania and throughout the country."
“Today’s operation, which was centered in the City of Pittsburgh’s Homewood neighborhood, highlights the critical role our task forces play in combating heroin and cocaine trafficking and the violent criminal enterprises that attempt to take root in our neighborhoods,” said Special Agent in Charge Scott S. Smith of the FBI’s Pittsburgh Field Office. “Federal penalties for drug trafficking are severe, and the FBI will continue to work with our local, state and Federal partners to stop the flow illegal drugs and to dismantle the violent criminal enterprises that facilitate the flow, as we have done here today. Like our partners, the Pittsburgh Division of the FBI is committed to improving the quality of life in the communities we serve.”
“The announced federal indictment and subsequent arrests sends a firm message to our City’s youth not to join gangs and not to pursue a criminal way of life,” said ATF Special Agent in Charge Sam Rabadi. “The arrests yesterday underscore ATF’s continuing efforts to fight violent crime by working closely with our Federal, state and local partners, to remove violent drug dealers from our communities, and return gang-infested neighborhoods to our fellow citizens.”
The first indictment (superseding), containing two counts, named:
- Lionel Cannon, aka Cannon, 49, of Cleveland, OH, currently incarcerated;
- Cecil Pinnix, aka C-Bone, 45, of Pittsburgh, PA, currently incarcerated;
- Misha Cannon, 44, of San Bernardino, CA;
- Jason Hunter, aka Jay, 40, of Los Angeles, CA, currently incarcerated;
- Tieriq Pinnix, 21, of Pittsburgh, PA;
- Devonte White, 22, of Pittsburgh, PA;
- Ellis Harris, 44, of Pittsburgh, PA;
- Aaron Reed, aka Bean, 33, of Wilkinsburg, PA;
- Douglas Smith, Jr., aka Crush, 41, of Penn Hills, PA; and
- Gregory Price, 38, of aka Stink, Penn Hills, PA.
According to the superseding indictment, from in and around December 2013, and continuing thereafter to in and around August 2014, in the Western District of Pennsylvania and elsewhere, the defendants conspired to possess with intent to distribute and distribute five kilograms or more of cocaine. Also according to the superseding indictment, during that same time frame, Lionel Cannon, Cecil Pinnix, Ellis Harris and Douglas Smith, Jr. conspired to possess with intent to distribute and distribute 100 grams or more of heroin.
The law provides for a maximum sentence of not less than 10 years and up to life in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The second indictment, containing three counts, named:
- Tracey Yancey, 52, of Pittsburgh, PA;
- John Alexander, 50, of Pittsburgh, PA;
- Andre Collington, 43, of Pleasant Hills, PA;
- David Irwin, 43, of White Oak, PA;
- Abdul Boyd, 38, of Penn Hills, PA;
- Brittanie Dickerson, 25, of Penn Hills, PA;
- Lavon Hudgins, aka Lavaughn Hudgins, 44, of Wilkinsburg, PA;
- Sidney Pinnix, 48, of Pittsburgh, PA;
- Lamaca Davis, 42, of Pittsburgh, PA; and
- Edwina Yancey, aka Edwina Brown, 30, of Pittsburgh, PA.
According to the indictment, from in and around December 2013, and continuing thereafter to in and around August 2014, the defendants conspired to possess with intent to distribute and distribute cocaine; Tracey Yancey, John Alexander, David Irwin and Abdul Boyd are charged with conspiring to possess with intent to distribute and distribute 500 grams or more of cocaine. Also according to the indictment, on July 28, 2014, Tracey Yancey, a convicted felon, unlawfully possessed a firearm. Also according to the indictment, on July 28, 2014, Edwina Yancey falsified of a firearms purchase form in connection with the purchase of that firearm (i.e., was involved in the straw purchase of the gun).
The law provides for a maximum sentence on the drug charges of not less than five years and up to 40 years in prison, a fine of $2,000,000, or both. The law provides for a maximum sentence on the firearms charges of up to 10 years in prison, a fine of $250,000, 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.
The third indictment, containing one count, named:
- John Alexander, 50, of Pittsburgh, PA;
- Andre Collington, 43, of Pleasant Hills, PA;
- Roxanne Thompson, 26, of Pittsburgh, PA;
- Mark Spearman, 33, of Pittsburgh, PA;
- Harold Neal, 53, of Pittsburgh, PA;
- Larry Washington, 63, of Wilkinsburg, PA; and
- Cora Everett, 42, of Pittsburgh, PA.
According to the indictment, from in and around December 2013, and continuing thereafter to in and around August 2014, the defendants conspired to possess with intent to distribute and distribute crack cocaine. John Alexander and Andre Collington are charged with conspiring to possess with intent to distribute and distribute more than 28 grams of crack cocaine.
The law provides for a maximum sentence of not less than five years and up to 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The fourth indictment, containing three counts, named:
- Abdul Qawwee Daniels, aka Qawwee, 38, of Monroeville, PA;
- Eddie Garrett, aka Eddie Garrett, Jr., 43, of Clarksburg, WV;
- David Earl Hamilton, 45, of Clarksburg, WV;
- Kadesha Marie Mitchell, 37, of Pittsburgh, PA; and
- Brian Torrey Smith, 22, of Swissvale.
According to the indictment, from in and around December 2013, and continuing to in and around June 2014, defendants Abdul Daniels, David Earl Hamilton, Kadesha Marie Mitchell, and Brian Torrey Smith conspired to possess with intent to distribute and distribute crack cocaine. Abdul Daniels, David Earl Hamilton, and Kadesha Marie Mitchell are charged with conspiring to possess with intent to distribute and distribute 280 grams or more of crack cocaine. Also according to the indictment, on or about March 20, 2014, defendants Eddie Garrett and David Earl Hamilton possessed with intent to distribute 28 grams or more of crack cocaine. Also according to the indictment, on or about May 30, 2014, defendant Brian Torrey Smith possessed with intent to distribute crack cocaine.
The law provides for a maximum sentence of not less than 10 years and up to life in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The fifth indictment, containing four counts, named:
- Carlos M. White, Jr., 26, of Pittsburgh, PA (currently incarcerated).
According to the indictment, from in and around December 2013, and continuing thereafter to in and around March 2014, Carlos M. White, Jr. conspired to distribute and to possess with intent to distribute 100 grams or more of heroin. Also according to the indictment, White, Jr. possessed with intent to distribute and distributed heroin on January 29, 2014, February 10, 2014, and March 6, 2014.
The law provides for a maximum sentence of not less than five years and up to 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The sixth indictment, containing nine counts, named:
- Antwon Lamar Richards, 29, of Pittsburgh, PA;
- Christopher James Brooks, 32, of Pittsburgh, PA;
- Altony Boyd, aka Bobby Lee Boyd, aka Pooh Hard, 35, of Pittsburgh, PA;
- Gaston Pleas Bradshaw, 27, of Pittsburgh, PA;
- Allen T. Finley, aka Torri Finley, aka T-Boy, 39, of Penn Hills, PA;
- Kenneth Marcel Higginbotham, 38, of Washington, PA;
- Hasan Sharif Reed, aka Nas, 36, of Coraopolis, PA;
- Antwon Lamar Stanton, aka Twon, 35, of Pittsburgh, PA; and
- Shaey Lee Williams, 23, aka Shiz, of Swissvale, PA.
According to the indictment, from in and around October 2013, and continuing thereafter to in and around April 2014, the defendants conspired with one another to possess with intent to distribute and distribute 500 grams or more of powder cocaine, and 280 grams or more of crack cocaine. Also according to the indictment, defendants Christopher James Brooks, Altony Boyd, Hasan Sharif Reed, and Antwon Lamar Stanton conspired to possess and carry firearms in furtherance, and during and in relation to, that drug trafficking crime. Also according to the indictment, on November 26, 2013, defendant Christopher James Brooks possessed with intent to distribute and distributed 28 grams or more of crack cocaine and possessed with intent to distribute and distributed crack cocaine on October 8, 2013, October 14, 2013, October 24, 2013, February 4, 2014, and February 12, 2014. Also according to the indictment, on October 8, 2013, defendant Altony Boyd possessed with intent to distribute and distributed crack cocaine. Also according to the indictment, on December 5, 2013 defendants Allen T. Finley and Hasan Sharif Reed possessed with intent to distribute and distributed crack cocaine. Finally, on February 4, 2014, and February 12, 2014, defendant Gaston Pleas Bradshaw possessed with intent to distribute and distributed crack cocaine.
The law provides for a maximum sentence of not less than 10 years and up to life in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Troy Rivetti and Tonya Sulia Goodman are prosecuting these cases on behalf of the government.
The Federal Bureau of Investigation, the FBI Greater Pittsburgh Safe Street Task Force, including agents from the Bureau of Alcohol Tobacco, Firearms and Explosives, the Drug Enforcement Administration, U.S. Postal Inspectors, and the Pennsylvania State Police, along with the Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, McKeesport Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police conducted the investigation leading to the indictments in these cases.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
11th Henrico Drug Conspirator Sentenced to Four Years in PrisonRead the Press Release
RICHMOND, Va. – Dante Beard, 33, of Henrico County was sentenced yesterday to four years in prison for possession with intent to distribute cocaine. He is the 11th person sentenced as a result of a federal investigation of Henrico County cocaine dealers who were supplied by a dealer in North Carolina.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Shannon L. Taylor, Commonwealth Attorney for Henrico County; Karl C. Colder, Special Agent in Charge for Drug Enforcement Administration’s (DEA) Washington Field Division; and Douglas A. Middleton, Chief of Henrico Police Division, made the announcement after the sentencing before United State District Judge Henry E. Hudson.
Beard pled guilty on October 10, 2014 to one count of possession with intent to distribute cocaine. According to the Statement of Facts filed with his plea agreement, authorities intercepted a telephone conversation between Beard and his Henrico supplier, Darryl Delaney, during which Beard ordered cocaine. Beard subsequently admitted that he had been purchasing approximately two ounces of cocaine at a time, twice a month from Delaney.
Delaney and another Henrico dealer, Gordon Shelton, had been obtaining approximately 375 grams of cocaine at a time from Carlos Cooke, in North Carolina. Cooke’s courier, Tomeka Wimbush, would transport the drugs to Virginia. In connection with a Statement of Facts in support of his guilty plea, Cooke acknowledged that between 2007 and 2013 he distributed between five and fifteen kilograms of cocaine to Delaney and Shelton in quantities of 375 grams at a time. They, in turn, would then distribute the drugs to local dealers, including Beard, Kevin Lee, Kelley Brown, Charles Kates, Stevenson Silencieux, Eric Wingate and Michael Epps. Those individuals would then redistribute the cocaine in the local area.
This case was part of an 18-month OCDETF investigation, Operation Carolina and Back. Cooke was sentenced to 288 months in prison on August 8, 2014; and Wimbush was sentenced to 51 months in prison on August 5, 2014. Delaney was sentenced to 156 months in prison on May 14, 2014; Shelton was sentenced to 120 months in prison on April 18, 2014; Silencieux was sentenced to 48 months in prison on September 19, 2014; Lee was sentenced to 108 months on September 19, 2014; Brown was sentenced to 48 months in prison on September 19, 2014; Kates was sentenced to 72 months in prison on October 3, 2014; and Wingate was sentenced to 41 months prison on October 16, 2014. Epps, of Urbana, Virginia, was sentenced to 40 months in prison on October 3, 2014.
This case was investigated by the Drug Enforcement Administration, and the Henrico Police Division. Assistant United States Attorney David T. Maguire and Matthew Ackley, Special Assistant United States Attorney and Henrico County Regional Drug Prosecutor are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 3:14-cr-070, 3:14-cr-003, 3:14-cr-016 and 3:14-cr-030"Aiken Safe Communities:" Two Men Enter Guilty Pleas on Federal Gun ChargesRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Columbia, South Carolina ---- United States Attorney William N. Nettles, stated today that, earlier this week, two Aiken men, Jesse James Quarles, 33, and Kenneth Islar, 27, each entered guilty pleas in federal court in Columbia to the charge of felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g)(1).
Quarles and Islar were indicted in July by a federal grand jury in separate indictments. United States District Judge J. Michelle Childs of Columbia accepted the pleas and will impose sentence after she has reviewed pre-sentence reports that will be prepared by the U.S. Probation Office. Quarles and Islar previously waived their right to a detention hearing, and remain in custody.
Mr. Nettles stated the penalty for felon in possession is a fine of $250,000 and/or imprisonment for 10 years, plus a special assessment of $100. However, should either Quarles or Islar be classified based on prior criminal history as an Armed Career Criminal, they would be subject to enhanced penalties--a mandatory minimum term of imprisonment of 15 years and a maximum term of life in prison, a fine of $250,000, a five-year term of supervised release, and a special assessment fee of $100.
Launched in early 2013, the Aiken Safe Communities Initiative is a unified, proactive community approach to engage, educate, and encourage recurring offenders to change their behavior and make healthy life choices. The initiative also bands together local, state, and federal law enforcement to expedite the investigation and prosecution of individuals who reoffend in lieu of accepting opportunities and assistance offered by the community during public notification meetings held at Aiken City Hall several times a year.
From 2012-2013, the city of Aiken experienced an 86% reduction in murders. Earlier this year, the South Carolina Community Development Association presented the city of Aiken with its 2014 Award of Excellence, recognizing community development efforts that have significantly improved the quality of life in the community.
Both cases were investigated by the Aiken Department of Public Safety, the 2nd Circuit Solicitor’s Office (Aiken, Bamberg, and Barnwell counties), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). These prosecutions as well as the United States Attorney’s Office ongoing commitment to the Aiken Safe Communities Initiative are part of Operation CeaseFire. CeaseFire is a joint local, state, and federal initiative which seeks to prosecute aggressive individuals who unlawfully use, possess, or transfer firearms. Both cases are assigned to Assistant United States Attorney Lance Crick of the Greenville office.
Thursday 23 October 2014
Youngstown Man Charged with Cocaine DistributionRead the Press Release
A federal grand jury returned a one-count indictment charging Antwan M. Grissett, 44, of Youngstown, with possession and attempted possession with intent to distribute cocaine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that on or about October 2, 2014, Grissett possessed and attempted to possess with the intent to distribute more than 500 grams of cocaine.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal 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 United States Postal Inspection Service 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.
Wise County Men Convicted of Multiple Counts Related to Distribution of Synthetic DrugsRead the Press Release
BIG STONE GAP, VIRGINIA – United States Attorney Timothy J. Heaphy announced today that a Big Stone Gap jury returned a verdict of guilty on multiple counts related to controlled substance analogues in a trial that concluded on October 22, 2014.
Following a six-day jury trial, Cecil A. McConnell, Jr., 68, of Pound, Va., was convicted of one count of conspiracy to distribute controlled substance analogues, one count of distribution of controlled substance analogues, one count of maintaining a place for the purpose of distributing controlled substance analogues, misbranding of a drug with the intent defraud, and one count of possession with the intent to distribute a controlled substance analogue.
“These defendants operated a lucrative illegal business selling dangerous synthetic drugs,” United States Attorney Timothy J. Heaphy said today. “These substances are extremely dangerous and can lead to harmful consequences for users. Those of us who work in law enforcement will continue to remove this harmful material from our communities. We must also ensure that the people of Southwest Virginia understand that these synthetic drugs are unsafe and illegal.”
Douglas Eugene Stephens, 63, of Pound, Va., was convicted of one count of conspiracy to distribute controlled substance analogues, one count of maintaining a place for the purpose of distributing controlled substance analogues, misbranding of a drug with the intent defraud, and one count of offering for sale drug paraphernalia.
Six other defendants had previously pleaded guilty to charges related to the scheme to distribute synthetic cannabinoids in Florida and Southwest Virginia. Those defendants are:
Emmanual Vestal, 43, of Interlachen, Fla., previously pleaded guilty to one count of misbranding a drug with the intent to defraud and one count of conspiracy to misbrand a drug with the intent to defraud.
Victoria Hoyt, 41, of Interlachen, Fla., previously pleaded guilty to one count of misbranding a drug with the intent to defraud and one count of conspiracy to misbrand a drug with the intent to defraud.
Vicki Curry, 33, Gainesville, Fla., previously pleaded guilty to one count of misbranding a drug with the intent to defraud.
Cynthia Johns, 53, Hollister, Fla., previously pleaded guilty to one count of conspiracy to distribute controlled substance analogues.
James Pirtle, 72, Coeburn, Va., previously pleaded guilty to one count of misbranding a drug with the intent to defraud and one count of conspiracy to misbrand a drug with the intent to defraud.
Linda Pirtle, 66, Coeburn, Va., previously pleaded guilty to one count of conspiracy to distribute a controlled substance analogue.
According to evidence presented at the jury trial by Assistant United States Attorney, Zachary Lee, Cecil A. McConnell, Jr., assisted in the operation of Cecil’s Variety, a store located in Pound, Virginia. Douglas Eugene Stephens operated Get It Here, also a store in Pound, Virginia. Both distributed illegal synthetic cannabinoid products, namely, XLR-11, UR144, PB-22, and 5F-PB-22, marketing their products as legal “potpourri” or “incense” in order to attempt to evade federal and state law. The products sold by Stephens and McConnell were obtained from Emmanuel Vestal and Victoria Hoyt who operated stores named Smokeez in both Gainesville, Florida and Coeburn, Virginia.
The jury heard evidence that employees of Smokeez would mix chemicals received from China containing synthetic cannabinoids with acetone and plant materials before packaging the products and shipping them to Virginia. These products were then distributed in large quantities to stores in Southwest Virginia, including Get It Here, Cecil’s Variety, Get It Gone in Pound, Virginia, which was operated by James Pirtle, and Linda’s Place in Coeburn, Virginia, which was operated by Linda Pirtle. These businesses then sold the products to their customers in packaging claiming the products were “potpourri” and “incense.” The operators of these businesses also attempted to conceal their illegal activity by claiming that the products were “not for human consumption” even though the testimony of many witnesses at trial was that operators of the stores knew their products were being smoked by the purchasers in order to achieve effects similar to smoking marijuana.
The evidence at trial demonstrated that the Southwest Virginia Regional Drug Task Force in Big Stone Gap and the Wise County Sheriff’s Office began investigating the operations of McConnell, Stephens, Vestal, Jim Pirtle, Linda Pirtle, and others, in 2012. This investigation included numerous controlled purchases of synthetic cannabinoids, surveillance, package interceptions, financial investigation, and interviews. Law enforcement in Wise County coordinated their investigation with ongoing investigations being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Drug Enforcement Administration, Gainesville Police Department, Alachua County Sheriff’s Department, and Palatka Police Department.
On September 27, 2013, nine state and federal search warrants were executed by local, state and federal law enforcement in Wise County, Virginia, Gainesville, Florida, and Palm Coast, Florida at businesses and residences of those involved in the illegal distribution ring. As a result of the search warrants, law enforcement seized more than forty kilograms of synthetic cannabinoid products and more than $50,000 in United States currency. Evidence heard by the jury from employees of the businesses involved included that the cannabinoid products were sold at a price of $10 a gram and that daily sales for each store ranged from $800 - $2,000 a day. During the trial, experts in pharmacology testified that the products sold by McConnell, Stephens, and others, were extremely harmful when ingested by humans causing seizures, organ damage, hallucinations, and agitation.
At sentencing, Cecil A. McConnell, Jr., faces a potential maximum sentence of eighty-three years imprisonment and fines of up to $3,750,000. His sentencing is scheduled for January 22, 2015.
At sentencing, Doulas Eugene Stephens faces a potential maximum sentence of forty-four years imprisonment and fines of up to $1,750,000. His sentencing is scheduled for January 22, 2015.
At sentencing, Emmanuel Vestal faces a potential maximum sentence of eight years imprisonment and a fine of up to $500,000. His sentencing is scheduled for January 8, 2015.
At sentencing, Victoria Hoyt faces a potential maximum sentence of eight years imprisonment and a fine of up to $500,000. Her sentencing is scheduled for January 8, 2015.
At sentencing, James Pirtle faces a potential maximum sentence of eight years imprisonment and a fine of up to $500,000. His sentencing is scheduled for January 6, 2015.
At sentencing, Linda Pirtle faces a potential maximum sentence of twenty years imprisonment and a fine of up to $1,000,000. Her sentencing is scheduled for January 8, 2015.
At sentencing, Vicki Curry faces a potential maximum sentence of three years imprisonment and a fine of up to $250,000. Her sentencing is scheduled for January 6, 2015.
At sentencing, Cynthia Johns faces a potential maximum sentence of twenty years imprisonment and a fine of up to $1,000,000. Her sentencing is scheduled for January 8, 2015.
The investigation of the case was conducted by the Southwest Virginia Regional Drug Task Force in Big Stone Gap, Virginia, Wise County Sheriff’s Office, St. Paul Police Department, St. Paul, Virginia, Coeburn Police Department, Coeburn, Virginia, Virginia Alcohol Beverage Control, Virginia State Police, Gainesville Police Department, Gainesville, Florida, Alachua County Sheriff’s Department, Gainesville, Florida, Palatka Police Department, Palatka, Florida, Drug Enforcement Administration, United States Marshals Service, and Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Wise County Commonwealth’s Attorney’s Office and the United States Attorney’s Offices for the Northern and Middle Districts of Florida assisted in the investigation and prosecution of this case. Assistant United States Attorney Zachary Lee prosecuted the case for the United States.
Williamsville Man Sentenced on Firearm ChargeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Norman Charnock, 51, of Williamsville, NY, who was convicted of possessing a firearm as a convicted felon, was sentenced to 60 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that on August 7, 2013, federal and state law enforcement officers executed a search warrant at the defendant’s Williamsville residence and found a rifle, 36 rounds of ammunition, an assortment of prescription drugs, and $1,400 cash all stored in a safe in the residence. They also located a loaded revolver in the garage. Among the prescription drugs found in the safe were drugs of the same type that Charnock had sold to a confidential informant three weeks prior to the search warrant.
Today’s sentencing is the culmination of an investigation by Special Agents of the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge James S. Higgins, New York Field Division, and by deputies of the United States Marshals Service, under the direction of Charles Salina.Wilkes-Barre Man Found Guilty of Heroin Trafficking and Firearm Charges After Five Day Federal TrialRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that on Monday a federal jury in Scranton returned seven guilty verdicts against Terrell Stevenson, a/k/a “Inf”, age 36, of Wilkes-Barre, on charges involving trafficking in excess of 100 grams of heroin and related firearm offenses.
Following a 5-day trial before United States District Court Judge Robert D. Mariani, the jury deliberated for about 2 ½ hours before returning guilty verdicts on 1 count of conspiracy to distribute 100 or more grams of heroin within 1,000 feet of a protected area (an elementary school), 1 count of possession with intent to distribute heroin, 1 count of unlawful use of a communication facility in furtherance of a violation of a controlled substance offense, 1 count of unlawful possession of a stolen firearm, 1 count of felon in possession of firearm, 1 count of fugitive from justice in possession of a firearm, and one count of unlawful possession of a means of identification as an aid in the commission of a federal violation. Stevenson was found not guilty of 1 count of possession of a firearm in furtherance of a drug trafficking offense.
The defendants were first charged in a criminal complaint filed in 2012. The others charged include: William Nelson, age 42, and Merisol Merry, age 42, both of Brooklyn, New York; Lamar Thomas, age 40, Gregory Bush, age 52, both from Scranton; Michael Blondell, age 35, of Blakely; Christopher Taylor, age 26, of Binghamton, New York; and Sean Martinelli, 29, of Philadelphia. All pleaded guilty and await sentencing.
At Stevenson’s trial, the Government presented the testimony of 16 witnesses and evidence from a federal wiretap investigation. Communications between the co-conspirators and the defendant were played in court, admitted into evidence and presented to the jury. The communications involved discussions focused on possession and distribution of heroin, quantities of heroin, and drug proceeds.
Stevenson faces a possible maximum life sentence based on the offenses and his prior criminal record. A sentencing date has not been scheduled.
This case arose from a joint investigation by the Drug Enforcement Agency Scranton office, the Lackawanna County District Attorney’s Office – Detective Division, the Pennsylvania State Police, the Scranton and Wilkes-Barre Police Departments. Assistant United States Attorney Michelle Olshefski prosecuted the case.
Wheeling Man Sentenced to 30 Months in Prison for Possessing Stolen FirearmRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Wilbur W. Barr, IV, 22, of Wheeling, West Virginia, was sentenced to 30 months in prison for possession of a stolen firearm, United States Attorney William J. Ihlenfeld, II, announced today.
Barr pled guilty in June 2014 to one count of "Possession of a Stolen Firearm" after he was discovered in possession of a stolen 9mm pistol that he received in exchange for methamphetamine. The pistol was originally reported stolen in Marshall County.
Assistant U.S. Attorney Steve Vogrin prosecuted the case on behalf of the government. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ohio and Marshall County Sheriff's Departments, and the Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative.
Chief U.S. District Judge John Preston Bailey presided.
West Virginia Man Sentenced for Failure to Update Sex Offender RegistrationRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistELKINS, WEST VIRGINIA – Convicted sex offender Charles D. Abrams, Jr., 33, was sentenced to one year and one day in prison for failure to update his sex offender registration, United States Attorney William J. Ihlenfeld, II, announced today.
Abrams was convicted in June 2001 in Norfolk, Virginia of carnal knowledge of a minor. In early 2014, Abrams relocated from Marlinton, West Virginia to Virginia Beach, Virginia and failed to update his sex offender registration. He pled guilty in August 2014 to one count of “Failure to Update Sex Offender Registration” after an investigation by the West Virginia State Police and the United States Marshals Service.
Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government.
Chief U.S. District Judge John Preston Bailey presided.
Warren Man Charged with Assaulting Federal OfficerRead the Press Release
A federal grand jury returned a two-count indictment charging George Rafidi, 60, of Warren, with assault on a federal officer and with possession of a firearm in connection with a violent felony, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that on or about October 8, 2014, Rafidi forcibly assaulted, resisted, impeded and interfered with federal law enforcement officers, who were engaged in their official duties, and brandished a firearm during the assault.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal 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 United States Department of Agriculture, Office of Inspector General, the United States Marshals Service, Homeland Security Investigations and the Lordstown Police Department. 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.
Utah Man Pleads Guilty to Traveling into the District of ColumbiaRead the Press Release
To Engage in Illicit Sexual Conduct With a Minor
WASHINGTON – Marc Val Singleton, 35, of Salt Lake City, Utah, pled guilty today to traveling interstate to engage in illicit sexual conduct with a minor, announced U.S. Attorney Ronald C. Machen Jr., Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Singleton entered the guilty plea in the U.S. District Court for the District of Columbia. The Honorable Rosemary M. Collyer is to sentence him on Jan. 23, 2015. Singleton faces a maximum sentence of 30 years in prison as well as a fine of $250,000.
According to the government's evidence, on or about June 10, 2014, Singleton contacted an undercover officer with the FBI's Child Exploitation Task Force, through a social network site. Over the course of that one day, Singleton engaged in an instant message conversation with the undercover officer, whom the defendant believed was the father of an under-aged girl. During the course of this conversation, Singleton arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the child.
On June 10, 2014, Singleton traveled from a hotel in Bethesda, Md., where he was staying for a conference, to a pre-arranged meeting place in Washington, D.C. When he arrived at the meeting place he was arrested.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director McCabe and
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Chief Lanier commended the work of the MPD Detectives and Special Agents of the FBI’s Child Exploitation Task Force. They also expressed appreciation for the efforts of Assistant U.S. Attorney Ari Redbord, who is prosecuting the case.Undocumented Aliens from Honduras Charged with Illegal Use of Social Security NumbersRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RONY RIVERA-GONZALES, age 23, FRANCISCO MUNOZ, age 26, and ESMIN ESPINOZA-ERAZO, age 24, all three from Honduras and most recently residing in Hammond, Louisiana, were separately charged today in one-count indictments with illegal use of a Social Security Number, in violation of 42 U.S.C. '408(a)(7)(B).
According to the indictments, RIVERA-GONZALES, MUNOZ, and ESPINOZA-ERAZO used Social Security Numbers that had not been assigned to them to obtain Louisiana Identification Cards.
If convicted, RIVERA-GONZALES, MUNOZ, and ESPINOZA-ERAZO each face a maximum term of imprisonment of five years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment.
U. S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement and Removal Operations, and the Louisiana State Police in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
(Download Indictment - Espinoza-Erazo )
(Download Indictment - Munoz )
(Download Indictment - Rivera-Gonzalez )
Undocumented Alien, Alvaro D. Campos, Charged with Illegal Reentry After Previously Being DeportedRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALVARO D. CAMPOS, age 39, from Guatemala, was charged today in a one-count indictment with illegal reentry into the United States after having been previously deported, in violation of 8 U.S.C. '1326(a).
According to the indictment, CAMPOS was found by United States Border Patrol agents in the Eastern District of Louisiana after records showed he had been previously deported from the United States to Guatemala on November 14, 2013.
If convicted, CAMPOS faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U. S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security and the Orleans Parish Sheriff’s Department in investigating this matter. Assistant U.S. Attorney Rick Veters is in charge of the prosecution.
Two Sentenced to Seven Years in Prison for Violent Crimes Committed on the Red Lake Indian ReservationRead the Press Release
United States Attorney Andrew M. Luger today announced the unrelated sentencings of FERNANDO LUIS MAY-GIL-GARCIA, 29, and AVERY WADE SCHOENBORN, 25, each to 84 months in federal prison for unrelated violent offenses committed on the Red Lake Indian Reservation. Both defendants are enrolled members of the Red Lake Band of Chippewa Indians. They were sentenced yesterday in U.S. District Court in Duluth before Senior Judge Richard H. Kyle.
According to MAY-GIL-GARCIA’S guilty plea and documents filed in court, MAY-GIL- GARCIA repeatedly struck a female victim multiple times with his fists. During the assault, the victim was holding a baby in her arms and she was unable to fend off the blows. The baby was also struck during the assault. MAY-GIL-GARCIA also bit the victim in the face and on the back. As a result of the assault, the victim suffered multiple broken bones in her face.
As proven at trial in the SCHOENBORN case, SCHOENBORN sexually assaulted an intoxicated victim. While the victim was unconscious in a friend’s home, SCHOENBORN entered the house and proceeded to sexually assault the victim. The victim was later taken to a hospital where she regained consciousness and was treated and released. The trial lasted two days in U.S. District Court in Duluth. The jury deliberated for less than two hours before returning a guilty verdict.
These cases resulted from investigations conducted by the Federal Bureau of Investigation and the Red Lake Police Department.
Both cases were prosecuted by Assistant U.S. Attorney Clifford Wardlaw.
Defendant Information:
FERNANDO LUIS MAY-GIL-GARCIA, 29
Red Lake, Minn.
Convicted:
• Assault Resulting in Serious Bodily Injury, 1 count
Sentenced:
• 84 months in prison
AVERY WADE SCHOENBORN, 25
Red Lake, Minn.
Convicted:
• Sexual Abuse, 1 count
Sentenced:
• 84 months in prison###
Two Men Indicted for Orchestrating A Bank Fraud Conspiracy in the Twin CitiesRead the Press Release
United States Attorney Andrew M. Luger today announced a federal indictment charging two individuals with orchestrating a $1 million bank fraud conspiracy in the Minneapolis/St. Paul metro area. VINH XUAN NGO, a/k/a “Houng Van Tran,” 36, and NORINH INTHONEPRADITH, a/k/a “Chau Ngo,” 38, are charged with Aggravated Identity Theft, and Conspiracy to Commit Bank Fraud and Access Device Fraud, in a 15-count indictment.
According to the indictment, from approximately December 2012 through February 2014, NGO and INTHONEPRADITH conspired to defraud several individuals and financial institutions throughout the Twin Cities. The defendants created false identification documents from stolen information and assumed the victims’ identities to gain control over bank and credit card accounts. In addition, NGO and INTHONEPRADITH opened new bank accounts, conducted transactions, and obtained cash and merchandise through fraud.
According to the indictment, from approximately January 2013 through June 2013, NGO and INTHONEPRADITH used counterfeit permanent resident cards and driver’s licenses to open bank accounts and post office boxes, and to complete applications to reroute the delivery of victims’ mail, including mail related to bank and credit card accounts. Using victims’ names, identification and bank account information, NGO and INTHONEPRADITH made more than $46,000 in fraudulent deposits, withdrawals, and transfers at various financial institutions. The defendants also used counterfeit checks and credit cards to purchase approximately $20,000 worth of merchandise and gift cards at multiple retailers.
This case is the result of an investigation conducted by Homeland Security Investigations and the United States Postal Inspection Service.
Assistant U.S. Attorney John E. Kokkinen is prosecuting the case.
Defendant Information:
VINH XUAN NGO, 36
Brooklyn Park, Minn.
Charges:
• Conspiracy, 1 count
• Bank Fraud, 6 counts
• Access Device Fraud, 2 counts
• Aggravated Identity Theft, 2 counts
NORINH INTHONEPRADITH, 38
Brooklyn Center, Minn.
Charges:
• Conspiracy, 1 count
• Bank Fraud, 5 counts
• Access Device Fraud, 2 counts
• Aggravated Identity Theft, 2 counts###
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two Individuals Charged, Third Pleads Guilty for Roles in Costa Rican Telemarketing Schemes Targeting U.S. ResidentsRead the Press Release
A California woman pleaded guilty today for her role in a half-million-dollar “sweepstakes fraud” scheme that was run from Costa Rica and targeted U.S. residents. A Costa Rican national and an Ohio resident were also indicted for their roles in separate but similar schemes earlier this week.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Anne M. Tompkins of the Western District of North Carolina made the announcement.
Patricia Diane Clark, 56, of Sacramento, California, pleaded guilty today before U.S. Magistrate Judge David S. Cayer of the Western District of North Carolina to conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering, all in connection with a Costa Rican telemarketing fraud scheme that targeted U.S. residents.
According to Clark’s plea agreement, from approximately 2007 through February 2013, her co-conspirators called U.S. residents from Costa Rican call centers, falsely informing them that they had won a substantial cash prize in a “sweepstakes.” The victims, many of whom were elderly, were told that in order to receive the prize, they had to send money for a purported “refundable insurance fee.” Clark admitted that she picked up money from the victims and sent it to her co-conspirators in Costa Rica. Clark also admitted that she managed others who picked up money from the victims in the United States and that she kept a portion of the victims’ payments.
Also according to Clark’s plea agreement, once the victims sent money, Clark’s co-conspirators contacted the individuals again and falsely informed them that the prize amount had increased, either because of a clerical error or because another prize winner was disqualified. The victims then had to send additional money to pay for new purported fees to receive the now larger sweepstakes prize. The attempts to collect additional money from the victims continued until an individual either ran out of money or discovered the fraudulent nature of the scheme.
Clark admitted that, along with her co-conspirators, she was responsible for approximately $640,000 in losses to hundreds of U.S. citizens.
Additionally, earlier this week, Marco Vinicio Fallas Hernandez, 41, a Costa Rican citizen, was charged in a superseding indictment in the Western District of North Carolina with one count of conspiracy to commit wire fraud, ten counts of wire fraud, one count of conspiracy to commit money laundering, and nine counts of international money laundering in connection with a similar telemarketing scheme. According to the indictment, Hernandez and his co-conspirators were responsible for causing approximately $10,000,000 in losses to hundreds of U.S. citizens, many of whom are elderly. Eight individuals, including Hernandez, are charged in the superseding indictment.
Separately, Paul Ronald Toth Jrj., 38, a resident of Bloomingdale, Ohio, was indicted in the Western District of North Carolina this week on one count of conspiracy to commit money laundering and six counts of international money laundering. According to the indictment, between November 2009 and November 2010, Toth and others he supervised received money from victims of a Costa Rican telemarketing scheme. Toth allegedly kept some of the proceeds and wired the remainder to Costa Rica using numerous persons as senders and recipients, all in a manner designed to conceal and disguise the fraudulent source and nature of the transactions. Toth is alleged to have received more than $300,000 of illegal proceeds during the scheme.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
These cases were investigated by the U.S. Postal Inspection Service, FBI, Internal Revenue Service, Federal Trade Commission, and Department of Homeland Security. These cases are being prosecuted by Senior Litigation Counsel Patrick Donley and Trial Attorneys William Bowne and Anna Kaminska of the Criminal Division’s Fraud Section.
Two Chestertown Men Indicted for Conspiring to Illegally Obtain Firearms for A Prohibited PersonRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Daniel P. Welch, age 36, of Crumpton and Chestertown, Maryland, and Jonathan M. Sutton, age 36, of Chestertown, on charges of conspiring to unlawfully obtain firearms for a prohibited person. The indictment also charges Welch with being a felon in possession of firearms. The indictment was returned on October 22, 2014.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Queen Anne’s County Sheriff R. Gery Hofmann III; Chief George A. Baker of the Chestertown Police Department; and Queen Anne’s County State’s Attorney Lance G. Richardson.
The four count indictment alleges that Welch is a previously convicted felon and therefore is prohibited from possessing firearms. According to the indictment, between January 29, 2011 and January 31, 2014, Sutton obtained six firearms for Welch through private sellers and through “straw purchases” by Sutton from a federally licensed firearms dealer. A “straw purchase” occurs when an individual, who is ineligible to lawfully purchase a firearm, such as a previously convicted felon, solicits another to conduct the transaction. As part of the purchase, the middleman-buyer must complete the ATF Form 4473, which notifies the buyer that such purchases are unlawful. On the first page of the form, the buyer is asked: “Are you the actual transferee/buyer of the firearm . . .?” The question is followed by a warning in bold print that states: “Warning: You are not the actual buyer if you are acquiring the firearm(s) on behalf of another person.” Finally, the buyer’s certification explicitly states that falsely answering “yes” to the actual buyer question is a crime punishable as a felony.
Specifically, the indictment alleges that on January 29, 2011, Welch and Sutton visited four ATMs in Stevensville, Maryland, near a federally licensed firearms dealer, and Welch withdrew approximately $1,700 in cash. Welch and Sutton then went to the firearms dealer and selected firearms for Sutton to purchase for Welch. Sutton purchased a Smith & Wesson MP5-22, a Mossberg Persuada 500, and a Century Arms SKS. Sutton completed Form 4473 indicating the he was the actual buyer of the firearms and was not acquiring the firearms for another person. On February 1, 2011, Sutton picked up the guns, which he then transferred to Welch. According to the indictment, on February 11, 2011, Sutton purchased a Marlin rifle from the firearms dealer, again completing the Form 4473 and falsely indicting that he was buying the gun for himself. In 2012, Sutton acquired a Remington Arms 597 and a Ruger Single Six, both .22 caliber, through private purchases. The indictment alleges those guns were subsequently possessed by Welch.
The defendants face a maximum sentence of five years in prison for the conspiracy and Welch faces a maximum penalty of 10 years in prison for each of three counts of being a felon in possession for a firearm. An initial appearance has been scheduled for Sutton on November 7, 2014 in U.S. District Court in Baltimore. No court appearance has been scheduled for Welch, who is currently in state custody on unrelated charges.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI, Queen Anne’s County Sheriff’s Office, Chestertown Police Department and the Queen Anne’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Zachary A. Myers, who is prosecuting the case.
Three Sentenced for Painkiller DistributionRead the Press Release
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(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Three Clarksburg area men, including a former Harrison County Process Server, were sentenced for collaborating to distribute oxycodone, United States Attorney William J. Ihlenfeld, II, announced today.
Former Harrison County Sheriff’s Department Process Server Jason Marple, 36, of Clarksburg, was sentenced to 21 months for distributing oxycodone near the Clarksburg City Park – North View playground and an additional 60 months because he was in possession of a firearm at the time. These sentences will run consecutively for a total of 81 months in prison. He pled guilty in June 2014 to one count of “Distribution of Oxycodone within 1000’ of a Protected Location – Aiding and Abetting,” and one count of “Possession/Use/Carrying of a Firearm in Furtherance of a Drug Trafficking Crime.”
Russell Powers, 50, of Clarksburg, was sentenced to 21 months in prison. He pled guilty in June 2014 to one count of “Possession with Intent to Distribute Oxycodone – Aiding and Abetting.”
Chad Alton Register, 32, of Bridgeport, West Virginia, was sentenced to 12 months and one day in prison. He pled guilty in July 2014 to one count of “Distribution of Oxycodone – Aiding and Abetting.”
Assistant U.S. Attorney Shawn Morgan prosecuted the cases on behalf of the government. The investigation was led by the Greater Harrison County Drug and Violent Crimes Task Force, a HIDTA-funded initiative.
U.S. District Judge Irene M. Keeley presided.
Three Men Indicted in $2.5 Million Fraud Scheme Using Stolen Social Security NumbersRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Benjamin Bland, age 39, of Glen Allen, Virginia; Michael Westbrook age 36; and Anthony Simpson, age 43, both of Baltimore, on charges arising from a scheme to allow individuals with poor credit histories and criminal records to obtain money and property using misappropriated social security numbers and fraudulently established credit histories. The second superseding indictment, which was returned on October 14, 2014 and unsealed late yesterday, adds Bland as a defendant and seeks the forfeiture of at least $2.5 million and luxury vehicles.
The second superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).Bland owned New Credit History, a company headquartered in Richmond, Virginia that hosts a website and purports to provide individuals with new credit through the issuance of a “secondary credit number.” Westbrook owned The Westbrook Project, a home renovation company incorporated in Maryland.
According to the 17 count indictment, from February 2012 to October 2014, the defendants obtained social security numbers previously issued to other persons and sold the misappropriated social security numbers by email and cell phone text messaging to individuals. The defendants provided these individuals with counterfeit social security cards and driver’s licenses with materially false information that would link the user to the misappropriated social security numbers. The defendants instructed the individuals to submit false credit applications to commercial lenders and retailers to generate improved credit scores, and to prepare and submit false loan applications to lenders to receive money and property.
The indictment charges Westbrook with acquiring fraudulent credit accounts for his clients and himself to enhance their fraudulent credit histories.
The defendants face a maximum sentence of 30 years in prison for conspiring to commit wire fraud and for each of four counts of wire fraud; five years in prison on each of five counts for social security fraud; and a mandatory minimum of two years in prison consecutive to any other sentence on each of seven counts for aggravated identity theft. An initial appearance and arraignment for Bland was held on October 21, 2104, in U.S. District Court in Baltimore. Bland was released under the supervision of U.S. Pretrial Services. No court appearance has been scheduled for Westbrook and Simpson, who were arrested previously and remain released under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Co-defendant Donneltric Johnson, age 36, of Baltimore, previously pleaded guilty to conspiracy to commit wire fraud for his role in the scheme and is scheduled to be sentenced on December 5, 2014, at 9:30 a.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore for its work in the investigation. Mr. Rosenstein praised the HSI Richmond, Virginia; Baltimore and Anne Arundel Counties Police Departments; Henrico County, Virginia Police Department; the Eastern District of Virginia United States Attorney’s Office; U.S. Secret Service Richmond Field Office; and the Internal Revenue Service – Criminal Investigation, Richmond, for their assistance in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Mark W. Crooks, who is prosecuting the case.
Three Found Guilty on Drug CountsIn Federal Jury Trial in TopekaRead the Press Release
TOPEKA, KAN. – Three defendants were convicted on drug charges Thursday during a federal jury trial in Topeka, U.S. Attorney Barry Grissom said.
Convicted were:Raymond Alcorta, 41, Downey, Calif., one count of conspiracy to distribute methamphetamine.
Adrienne Lopez, 27,Pico Rivera, Calif., one count of possession with intent to distribute methamphetamine and one count of conspiracy to distribute methamphetamine.
Angela Marie Lopez, 35, El Monte, Calif., one count of possession with intent to distribute methamphetamine,and one count of conspiracy to distribute methamphetamine.During trial before U.S. District Court Judge Daniel D. Crabtree, prosecutors presented evidence that Adrienne and Angela Lopez were arrested June 21, 2013, in Seward County, Kan., when they were caught hauling approximately four pounds of methamphetamine from Los Angeles to Kansas City. Subsequent investigation tied them to Alcorta, who headed the drug trafficking organization.
Sentencing is set for Feb. 9, 2014. They face a penalty of not less than 10 years and not more than life and a fine up to $10 million. Grissom commended the Drug Enforcement Administration, the Kansas Highway Patrol, the Kansas Bureau of Investigation and Assistant U.S. Attorney Tony Mattivi for their work on the case.
Stockton Man Sentenced to over Three Years in Prison Possessing Sawed Off ShotgunRead the Press Release
SACRAMENTO, Calif. — Jorge Leal, 21, of Stockton, was sentenced today by United States District Judge Troy L. Nunley to three years and one month in prison for being a felon in possession of a firearm and for possessing an unregistered sawed-off shotgun, United States Attorney Benjamin B. Wagner announced.
According to court documents, On December 2, 2013, Stockton police officers pulled over Leal, who was bicycling down N. Wilson Way in Stockton at night without a light. Leal was wearing a backpack that contained a sawed-off shotgun. Because Leal was a convicted felon—he had been convicted of first degree burglary in February 2012—he was prohibited from possessing a firearm. Further, because the sawed-off shotgun had a shortened barrel, Leal was required to register the firearm on the National Firearms Registration and Transfer Record. The firearm, however, was not registered. Leal has been in custody since making an initial appearance on these charges.
This case was the product of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosive and the Stockton Police Department. Assistant United States Attorney Christiaan Highsmith prosecuted the case.Stafford Woman Sentenced to 11 Years in Prison for Conspiracy to Distribute Hydromorphone, Oxycodone, and OxymorphoneRead the Press Release
ALEXANDRIA, Va. – Robin Anne Krohn, 31, of Stafford, Virginia, was sentenced today to 143 months in prison, followed by three years of supervised release for conspiracy to distribute controlled substances.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and Charles E. Jett, Stafford County Sheriff, made the announcement after sentencing by U.S. District Judge James C. Cacheris.
Krohn pleaded guilty on July 22, 2014. According to court documents, Krohn is a former patient of Dr. Nibedita Mohanty, who was indicted on charges of conspiracy to distribute controlled substances, distribution of controlled substances, aiding and abetting health care fraud, and aiding and abetting money laundering on July 24, 2014.
Krohn was a patient of Dr. Mohanty from approximately February 2010 through December 2011. During that time, Dr. Mohanty prescribed excessive dosages of controlled substances to Krohn. Krohn both abused the medication she was prescribed, snorting up to 150 pills per day, and distributed a large portion of the controlled substances prescribed by Dr. Mohanty for a profit, earning between $3,000 - $5,000 per week throughout the course of the conspiracy.
Knowing that Dr. Mohanty freely prescribed excessive dosages of controlled substances, Krohn was also responsible for recruiting a number of individuals to see Dr. Mohanty in order to obtain unnecessary prescriptions, which Krohn and her conspirators would later abuse and distribute for profit.
This case was initiated and investigated by the Stafford County Sheriff’s Office and assisted by the FBI’s Richmond and Washington Field Offices. Assistant U.S. Attorney Gene Rossi and Special Assistant U.S. Attorneys Jennifer Ballantyne and Nicole Grosnoff 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. 1:14-cr-256.
Six Charged with Participating in Luzerne County-based Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that six people were indicted by a federal grand jury in Scranton October 21, 2014 for participating in a heroin trafficking conspiracy in the Luzerne County area since February 2014.
According to United States Attorney Peter Smith, the grand jury alleges that the following individuals participated in the drug ring:
- Megan Fox, age 27, of Plymouth, PA, charged with conspiracy to distribute heroin and possession with intent to distribute heroin as an aider and abettor;
- Desmond Mercer, age 26, of Edwardsville, PA, charged with conspiracy to distribute heroin, possession with intent to distribute heroin as an aider and abettor, two counts of possession with intent to distribute heroin, unlawful possession of a firearm as a convicted felon, and carrying and possessing a firearm in connection with a drug trafficking offense;
- Shaliek Stroman, age 31, of Edwardsville, PA, charged with conspiracy to distribute heroin, and three counts of distribution/possession with intent to distribute heroin;
- Antuan Jamison, age 34 , of Irvington, New Jersey, charged with conspiracy to distribute heroin and possession with intent to distribute heroin as an aider and abettor;
- Corey Wortham, age 18, of Montgomery, Alabama, charged with conspiracy to distribute heroin and possession with intent to distribute heroin as an aider and abettor;
- Shaquan Murphy, age 27, of Newark, New Jersey, charged with conspiracy to distribute heroin and possession with intent to distribute heroin as an aider and abettor.
The Indictment also seeks to forfeit $15,887, and two vehicles seized during the investigation.
The indictments were sealed until today pending the defendants being taken into custody. Fox has been released on bail; Stroman was taken into custody yesterday and will appear in court today. The others have been detained.
The charges stem from an investigation by The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Kingston Police, Plymouth Police, Wilkes-Barre Police, Edwardsville Police, and the Luzerne County District Attorney’s Office.If convicted of the charges, Mercer faces up to life in prison and a $4.5 million fine; Stroman faces up to 80 years in prison and a $4 million fine; Fox, Jamison, Wortham, and Murphy each face up to 40 years in prison and a $2 million fine.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
****Sentencings for October 21 - October 23, 2014Read the Press Release
Felipe Baez-Vasquez, 26, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on October 23, 2014, for illegal re-entry of a previously deported alien into the United States. Baez-Vasquez was arrested in Jackson, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Martin Fernando Dominguez-Vasquez, 41, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on October 23, 2014, for illegal re-entry of a previously deported alien into the United States. Dominguez-Vasquez was arrested in Gillette, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Amy Rochelle Wendt, 42, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on October 23, 2014, for conspiracy to possess with intent to distribute, and to distribute 50 grams or more of methamphetamine. Wendt was arrested in Cheyenne, Wyoming. She received 84 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $200.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Spencer Dale Cottrell, 43, of Rock Springs, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on October 22, 2014, for making counterfeit obligations of the United States and for passing counterfeit obligations of the United States. Cottrell was arrested in Rock Springs, Wyoming. He received 15 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $200.00 special assessment and restitution in the amount of $950.00. This case was investigated by the U.S. Secret Service.
Melissa Lynne Goddard, 47, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on October 21, 2014, for conspiracy to possess with intent to distribute, and to distribute 50 grams or more of methamphetamine. Goddard was arrested in Cheyenne, Wyoming. She received 37 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Second Drug Dealer Pleads Guilty to Distributing Heroin and Oxycodone and to Illegally Possessing an Explosive DeviceRead the Press Release
Greenbelt, Maryland – Benjamin K. Bray, age 30, of Davidsonville, Maryland, pleaded guilty on October 21, 2014, to conspiracy to distribute and possess with intent to distribute heroin and oxycodone and to being a felon in possession of an explosive device.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Deputy Fire Chief Scott K. Hoglander, Acting Fire Chief for Prince George’s County Fire/EMS.
According to Bray’s plea agreement, from at least January 2011 through December 2012, Bray conspired with John Frank Jenkins and others to distribute oxycodone. Bray and his co-conspirators presented forged prescriptions for oxycodone pills to different pharmacies approximately twice a week from the spring of 2011 through the summer of 2012. Bray and his co-conspirators consumed some of the pills and sold the rest. During the conspiracy, Bray began to use and distribute heroin as a cheaper substitute for the oxycodone, selling heroin to pay for the heroin he used.In November 2012, Jenkins refused to sell oxycodone to one of his drug customers, resulting in an argument. After the argument, Jenkins built two pipe bombs, which he intended to use to blow up the drug customer’s vehicle. Bray supplied the black powder for the pipe bombs. Another drug customer owed Jenkins $50 for oxycodone that Jenkins had supplied to the customer in June 2012. On December 18, 2012, Bray and Jenkins were out of heroin and needed money to purchase heroin. As a result, Jenkins contacted the customer and attempted unsuccessfully to collect the debt. After the call ended, Bray and Jenkins carried one of the pipe bombs to the home of the customer who owed Jenkins money. Bray placed the pipe bomb on the front porch and lit the fuse. The bomb exploded, damaging the front door. The drug customer was sleeping in the bedroom adjacent to the door at the time of the explosion.
Bray and the government have agreed that if the Court accepts the plea, Bray will be sentenced to 96 months in prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for January 12, 2015, at 9:00 a.m.
John Frank Jenkins, age 30, of College Park, Maryland, was previously sentenced to 121 months in prison, followed by 14 months of home detention as part of three years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin and oxycodone and to 10 years in prison for making an explosive device and being a felon in possession of an explosive device. The sentences are to be served concurrently. Judge Grimm also ordered Jenkins to pay restitution of $475.
United States Attorney Rod J. Rosenstein praised the ATF, Prince George’s County Police Department and Prince George’s County Fire/EMS for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Leah J. Bressack, who are prosecuting the case.
San Felipe Pueblo Man Pleads Guilty to Federal Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Vincent Ortiz, 44, a member and resident of San Felipe Pueblo, pleaded guilty this morning to a federal sexual abuse charge. Under the terms of his plea agreement, Ortiz will be sentenced to 50 months in federal prison followed by a term of supervised release to be determined by the court. Ortiz will be required to register as a sex offender after he completes his prison sentence.
Ortiz was arrested in July 2014, on an indictment charging him with sexual abuse and assault with a dangerous weapon. According to court filings, on July 5, 2014, Ortiz sexually assaulted a Kewa Pueblo woman of Santo Domingo Pueblo, and assaulted a San Felipe Pueblo man in a residence located in the San Felipe Pueblo in Sandoval County, N.M.
Today Ortiz entered a guilty plea to Count 1 of the indictment, charging him with sexual abuse, and admitted sexually abusing the victim on July 5, 2014, by engaging in a sexual act with the victim who was incapable or unable to decline participation in the act. The sexual act consisted of Ortiz touching the victim’s genitals with his hand.
Ortiz has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney David Adams.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Rochester Man Pleads Guilty to Bank RobberyRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Raul Abidel Martinez, 34, of Rochester, NY, pleaded guilty to bank robbery before U.S. District Court Judge Frank P. Geraci. The charge carries a maximum penalty of 20 years in prison and a fine of up to $250,000.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that on August 23, 2011, Martinez walked into the M&T Bank on Lyell Avenue in Rochester and handed the teller a note demanding money. Among other things, the note claimed that the defendant had an AK-47. The teller gave Martinez some money and a dye pack which activated as soon as the defendant left the bank causing him to flee down Lyell Ave covered in red dye. Martinez was apprehended shortly thereafter by Rochester Police officers who responded to the silent alarm activation at the bank. Rochester Police enlisted the investigative assistance of the Federal Bureau of Investigation. At the time he robbed the M&T Bank, the defendant was on federal supervised release following a 2007 conviction for being a felon in possession of a firearm.
The guilty plea is the culmination of an investigation on the part of Officers of the Rochester Police Department, under the direction of Chief Michael Ciminelli and Special Agents of the Federal Bureau of Investigation
Sentencing which is scheduled for January 21, 2015 at 3:00 p.m. before Judge Geraci.Pine Hill Man Sentenced to Federal Prison for Child Abuse ConvictionRead the Press Release
ALBUQUERQUE – Harold Martinez, 32, an enrolled member of the Navajo Nation who resides in Pine Hill, N.M., was sentenced today for his child abuse conviction. Martinez will serve a prison sentence of 16 months followed by a year of supervised release.
Martinez was arrested on Nov. 26, 2013, on a criminal complaint alleging assault charges. According to the criminal complaint, on June 11, 2013, Martinez initiated a physical confrontation with another Navajo man. After the victim got into his vehicle in an effort to get away from Martinez, Martinez rammed his own vehicle into the victim’s vehicle several times. Two young boys were in Martinez’s vehicle when he rammed it into the victim’s vehicle.
On March 11, 2014, Martinez entered a guilty plea to a child abuse charge and admitted that on June 11, 2013, he deliberately drove his vehicle into another vehicle without justification. Martinez also admitted that two unrestrained children were in the vehicle he was driving and that by ramming into another vehicle he placed the children in a situation that endangered their lives or health. The children however were not injured.
This case was investigated by the Ramah Navajo Police Department and was prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
Philadelphia Man Sentenced to Prison for Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 32-year-old Philadelphia man was sentenced to 27 months in prison yesterday by U.S. District Court Judge Malachy E. Mannion for participating in a conspiracy that distributed heroin during November 2013 to January 2014.
According to United States Attorney Peter Smith, the defendant, Luis Morales, previously admitted that he conspired with others, including Eudy Gonzalez, then an inmate at SCI Waymart, to distribute and possess with intent to distribute heroin during a three-month time period.
Morales was indicted by a federal grand jury on March 11, 2014, as a result of an investigation by special agents and task force officers of the Federal Bureau of Investigation and Scranton Police.
Morales’ co-defendants, Linda Reyes and Eudy Gonzalez, previously pleaded guilty and both were sentenced to prison by Judge Mannion for their roles in the drug conspiracy.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Philadelphia Man Sentenced to 57 Months in Prison for Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 35-year-old Philadelphia man was sentenced to 57 months in prison yesterday by U.S. District Court Judge Malachy E. Mannion for his role in a conspiracy to distribute heroin in the Hazleton area of Pennsylvania.
According to United States Attorney Peter Smith, the defendant, Edwin Laureano-Suarez, previously admitted to conspiring with others to distribute heroin between May 2014 and June 18, 2014.
Laureano-Suarez was charged in a criminal Information filed on August 12, 2014, as a result of an investigation by the Federal Bureau of Investigation and Scranton Police.
Judge Mannion also ordered the defendant to serve three years of supervised release following his prison sentence, and pay a special assessment of $100.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Peruvian Man Sentenced to 17 1/2 Years in Prison for Sexually Exploiting a ChildRead the Press Release
A Peruvian man was sentenced to more than 17 years in prison for sexually exploiting a child, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland office.
Edwin Franco Rolffo-Zavala, 24, of Novato, California, was found guilty earlier this year of sexual exploitation of a child, transporting visual depictions of minors engaged in sexually explicit conduct and travel with intent to engage in illicit sexual conduct.
Rolff0-Zavala is a Peruvian national who will face deportation upon completion of his prison sentence.
From on or about May 13, 2013, through on or about January 13, 2014, Rolffo-Zavala, used, persuaded, induced, enticed and coerced a minor, that is, a 13-year-old girl to engage in sexually explicit conduct, for the purpose of transmitting a live visual depiction of such conduct, and knowing and having reason to know that such visual depiction would be transmitted, using any means or facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce, according to court documents.
From on or about January 1, 2011, through on or about January 13, 2014, Rolffo-Zavala knowingly transported, using any means of interstate and foreign commerce and in and affecting interstate and foreign commerce, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct, according to court documents.
On or about January 16, 2014, Rolffo-Zavala knowingly traveled in interstate commerce, from the State of California to the State of Ohio, for the purpose of engaging in illicit sexual conduct with a 14-year-old girl, according to court documents.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Akron Office of the Federal Bureau of Investigation and the Medina City Police Department.
Palmyra Man Arrested; Charged with Distributing Child PornographyRead the Press Release
ROCHESTER, N.Y. U.S. Attorney William J. Hochul, Jr. announced today that Noah R. Scribner, 22, of Palmyra, NY, was arrested and charged by criminal complaint with distribution of child pornography. The charge carries a mandatory minimum sentence of five years in prison, a maximum of 20 years, and a fine of up to $250,000.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the complaint, the New York State Police and Federal Bureau of Investigation conducted an online child pornography investigation in December 2013. During that case, they learned that child pornography had been uploaded to a Google cloud drive account. Investigators linked that activity to the defendant, and traced his physical location to his residence in Palmyra where a search warrant was executed and numerous digital items were seized. Sexually explicit images and movies were found on several of these items, including a laptop computer and iPod.
The defendant made an initial appearance today before U.S. Magistrate Marian W. Payson. Scribner is due back in court on December 4, 2014 at 9:00 a.m. before Magistrate Payson.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The criminal complaint is the culmination of an investigation by the New York State Police, under the direction of Major Scott crosier and the Federal Bureau of Investigation.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until proven guilty in a court of law.Pair Indicted for $2.1 Million Mortgage Fraud Involving Westlake HomeRead the Press Release
A six-count indictment was filed in federal court charging a pair from Northeast Ohio of engaging in a $2.1 million mortgage-fraud scheme involving a Westlake home, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Derryl L. Tanner, 47, of Euclid, and Julie A. Becker, 39, of Cleveland, engaged in a conspiracy in 2006 to defraud several lending institutions related to transactions involving a home at 1517 Fitzroy Street.
Tanner learned that the builder of the home on Fitzroy was experiencing financial difficulties and was willing to sell the home for the cost of construction. Tanner enlisted Becker to serve as a straw buyer. He told her that if she allowed the property to be purchased in her name, she would not have to put any money down and would receive cash back at the time of closing for allowing her name to be used, according to the indictment.
Becker signed promissory notes that she had no intention of repaying. Funds were temporarily transferred into an account in her name so she could qualify for a mortgage, a home equity line and make a down payment. She also, with Tanner’s knowledge, provided false income tax returns for the same purposes, according to the indictment.
When Ohio Savings approved a $250,000 home equity line of credit application on the Fitzroy property, Tanner and Becker quickly spent the money, including transferring large sums of money into their personal bank accounts, according to the indictment.
Tanner moved into the Fitzroy property but was not able to make the monthly mortgage payment. The property went into foreclosure, resulting in losses of approximately $670,000 to First Place, $250,000 to Ohio Savings/Amtrust and $350,000 to National City/PNC, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Mark S. Bennett following an investigation by the U.S. Postal Service Office of Inspector General and Westlake Police Department.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
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.
Owners of Safari Company Indicted for Illegal Rhino HuntsRead the Press Release
The owners of Out of Africa Adventurous Safaris were charged with conspiracy to sell illegal rhinoceros hunts in South Africa in order to defraud American hunters, money laundering and secretly trafficking in rhino horns, announced Sam Hirsch Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division; George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama; and Dan Ashe, Director of the U.S. Fish & Wildlife Service. The indictment was unsealed today in Montgomery, Alabama following the federal indictment.
The indictment charges Dawie Groenewald, 46, and his brother, Janneman Groenewald, 44, both South African nationals, and their company Valinor Trading CC (d/b/a Out of Africa Adventurous Safaris) with conspiracy, Lacey Act violations, mail fraud, money laundering and structuring bank deposits to avoid reporting requirements. The Lacey Act, the nation’s oldest criminal statute addressing illegal poaching and wildlife trafficking, makes it a crime to sell animal hunts conducted in violation of state, federal, tribal and foreign law.
According to the 18-count indictment, from 2005 to 2010, the Groenewald brothers traveled throughout the United States to attend hunting conventions and gun shows where they sold outfitting services and accommodations to American hunters to be conducted at their ranch in Mussina, South Africa. During the time period covered by the indictment, Janneman Groenewald lived in Autauga County, Alabama, where Out of Africa maintained bank accounts and is accused of money laundering and structuring deposits to avoid federal reporting requirements. Hunters paid between $3,500 and $15,000 for the illegal rhino hunts.
The defendants are charged with selling illegal rhino hunts by misleading American hunters. The hunters were told the lie that a particular rhino had to be killed because it was a “problem rhino.” Therefore, while no trophy could be legally exported, the hunters could nonetheless shoot the rhino, pose for a picture with the dead animal, and make record book entries, all at a reduced price. Meanwhile, the defendants are alleged to have failed to obtain necessary permits required by South Africa and cut the horns off some of the rhinos with chainsaws and knives.
The indictment alleges that the defendants then sold the rhino horn on the black market. Eleven illegal hunts are detailed in the papers filed in federal court, including one in which the rhino had to be shot and killed after being repeatedly wounded by a bow, and another in which Dawie Groenewald used a chainsaw to remove the horn from a sedated rhino that had been hunted with a tranquilizer gun. The American hunters have not been charged.
“We are literally fighting for the survival of a species today. In that fight, we will do all we can to prosecute those who traffic in rhino horns and sell rhino hunts to Americans in violation of foreign law,” said Sam Hirsch, Acting Assistant Attorney General for the Environment and Natural Resources Division. “This case should send a warning shot to outfitters and hunters that the sale of illegal hunts in the U.S. will be vigorously prosecuted regardless of where the hunt takes place.”
“These defendants tricked, lied and defrauded American citizens in order to profit from these illegal rhinoceros hunts,” stated U.S. Attorney Beck. “Not only did they break South African laws, but they laundered their ill-gotten gains through our banks here in Alabama. We will not allow United States’ citizens to be used as a tool to destroy a species that is virtually harmless to people or other animals.”
“The fact that defendants used American hunters to execute this scheme is appalling - but not as appalling as the brutal tactics they employed to kill eleven critically endangered wild rhinos,” said FWS Director Ashe. “South Africa has worked extraordinarily hard to protect its wild rhino population, using trophy hunts as a key management tool. The illegal ‘hunts’ perpetrated by these criminals undermine that work and the reputation of responsible hunters everywhere.”
Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. Adult rhinoceros have no known natural predators. All species of rhinoceros are protected under United States and international law. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets. Nevertheless, the demand for rhinoceros horn and black market prices have skyrocketed in recent years due to the value that some cultures have placed on ornamental carvings, good luck charms or alleged medicinal purposes, leading to a decimation of the global rhinoceros population. Like hair or finger nails, rhino horn is actually composed of keratin and has no proven medical efficacy. As a result, rhino populations have declined by more than 90 percent since 1970. South Africa, for example, has witnessed a rapid escalation in poaching of live animals, rising from 13 in 2007 to a record 1004 in 2013. Illegally killed rhinos like the ones charged in this prosecution are not included in the published statistics of poached animals.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The investigation of Out of Africa is part of Operation Crash (named for the term “crash” which describes a herd of rhinoceros), an ongoing nation-wide effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns led by the Special Investigations Unit of the Fish and Wildlife Service Office of Law Enforcement in coordination with the U.S. Department of Justice. Thus far there have been 26 arrests and 18 convictions with prison terms as high as 70 months. (See attached Crash Fact Sheet). Throughout the course of the investigation on the current charges, U.S. authorities received substantial cooperation from South Africa’s National Prosecuting Authority and a specialized endangered species unit within the organized crime unit of the South African Police Service. That unit is known as the Hawks. Additional assistance has been provided in this case by the Bureau of Alcohol, Tobacco and Firearms, in Montgomery, Alabama and the Autauga County, Alabama Sheriff’s Office. The Out of Africa case is being prosecuted in the Middle District of Alabama by Assistant U.S. Attorney Brandon K. Essig and by Richard A. Udell, Senior Litigation Counsel with the Environmental Crimes Section of the U.S. Department of Justice in Washington, D.C. The Out of Africa investigation is continuing.
The Criminal Division’s Office of International Affairs provided assistance.
Rhino Indictment
Opeartion Crash Summary
Owners of Safari Company Indicted for Illegal Rhino HuntsRead the Press Release
Out of Africa Charged with Wildlife Crimes, Fraud and Money LaunderingMontgomery, Alabama - The owners of Out of Africa Adventurous Safaris were charged with conspiracy to sell illegal rhinoceros hunts in South Africa in order to defraud American hunters, money laundering and secretly trafficking in rhino horns, announced Sam Hirsch Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division; George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama; and Dan Ashe, Director of the U.S. Fish & Wildlife Service. The indictment was unsealed today in Montgomery, Alabama following the federal indictment.
The indictment charges Dawie Groenewald, 46, and his brother, Janneman Groenewald, 44, both South African nationals, and their company Valinor Trading CC (d/b/a Out of Africa Adventurous Safaris) with conspiracy, Lacey Act violations, mail fraud, money laundering and structuring bank deposits to avoid reporting requirements. The Lacey Act, the nation’s oldest criminal statute addressing illegal poaching and wildlife trafficking, makes it a crime to sell animal hunts conducted in violation of state, federal, tribal and foreign law.
According to the 18-count indictment, from 2005 to 2010, the Groenewald brothers traveled throughout the United States to attend hunting conventions and gun shows where they sold outfitting services and accommodations to American hunters to be conducted at their ranch in Mussina, South Africa. During the time period covered by the indictment, Janneman Groenewald lived in Autauga County, Alabama, where Out of Africa maintained bank accounts and is accused of money laundering and structuring deposits to avoid federal reporting requirements. Hunters paid between $3,500 and $15,000 for the illegal rhino hunts.
The defendants are charged with selling illegal rhino hunts by misleading American hunters. The hunters were told the lie that a particular rhino had to be killed because it was a “problem rhino.” Therefore, while no trophy could be legally exported, the hunters could nonetheless shoot the rhino, pose for a picture with the dead animal, and make record book entries, all at a reduced price. Meanwhile, the defendants are alleged to have failed to obtain necessary permits required by South Africa and cut the horns off some of the rhinos with chainsaws and knives.
The indictment alleges that the defendants then sold the rhino horn on the black market. Eleven illegal hunts are detailed in the papers filed in federal court, including one in which the rhino had to be shot and killed after being repeatedly wounded by a bow, and another in which Dawie Groenewald used a chainsaw to remove the horn from a sedated rhino that had been hunted with a tranquilizer gun. The American hunters have not been charged.
“We are literally fighting for the survival of a species today. In that fight, we will do all we can to prosecute those who traffic in rhino horns and sell rhino hunts to Americans in violation of foreign law,” said Sam Hirsch, Acting Assistant Attorney General for the Environment and Natural Resources Division. “This case should send a warning shot to outfitters and hunters that the sale of illegal hunts in the U.S. will be vigorously prosecuted regardless of where the hunt takes place.”
“These defendants tricked, lied and defrauded American citizens in order to profit from these illegal rhinoceros hunts,” stated U.S. Attorney Beck. “Not only did they break South African laws, but they laundered their ill-gotten gains through our banks here in Alabama. We will not allow United States’ citizens to be used as a tool to destroy a species that is virtually harmless to people or other animals.”
“The fact that defendants used American hunters to execute this scheme is appalling - but not as appalling as the brutal tactics they employed to kill eleven critically endangered wild rhinos,” said FWS Director Ashe. “South Africa has worked extraordinarily hard to protect its wild rhino population, using trophy hunts as a key management tool. The illegal ‘hunts’ perpetrated by these criminals undermine that work and the reputation of responsible hunters everywhere.”
Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. Adult rhinoceros have no known natural predators. All species of rhinoceros are protected under United States and international law. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets. Nevertheless, the demand for rhinoceros horn and black market prices have skyrocketed in recent years due to the value that some cultures have placed on ornamental carvings, good luck charms or alleged medicinal purposes, leading to a decimation of the global rhinoceros population. Like hair or finger nails, rhino horn is actually composed of keratin and has no proven medical efficacy. As a result, rhino populations have declined by more than 90 percent since 1970. South Africa, for example, has witnessed a rapid escalation in poaching of live animals, rising from 13 in 2007 to a record 1004 in 2013. Illegally killed rhinos like the ones charged in this prosecution are not included in the published statistics of poached animals.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The investigation of Out of Africa is part of Operation Crash (named for the term “crash” which describes a herd of rhinoceros), an ongoing nation-wide effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns led by the Special Investigations Unit of the Fish and Wildlife Service Office of Law Enforcement in coordination with the U.S. Department of Justice. Thus far there have been 26 arrests and 18 convictions with prison terms as high as 70 months. (See attached Crash Fact Sheet). Throughout the course of the investigation on the current charges, U.S. authorities received substantial cooperation from South Africa’s National Prosecuting Authority and a specialized endangered species unit within the organized crime unit of the South African Police Service. That unit is known as the Hawks. Additional assistance has been provided in this case by the Bureau of Alcohol, Tobacco and Firearms, in Montgomery, Alabama and the Autauga County, Alabama Sheriff’s Office. The Out of Africa case is being prosecuted in the Middle District of Alabama by Assistant U.S. Attorney Brandon K. Essig and by Richard A. Udell, Senior Litigation Counsel with the Environmental Crimes Section of the U.S. Department of Justice in Washington, D.C. The Out of Africa investigation is continuing.
The Criminal Division’s Office of International Affairs provided assistance.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Owners of Cadillac Ranch Restaurants and Associated Accountant Sentenced for Tax ChargesRead the Press Release
A certified public accountant (CPA) from Dayton, Ohio, was sentenced today to serve 12 months and one day in prison to be followed by one year of supervised release by U.S. District Judge Edmund A. Sargus Jr. in Columbus, Ohio, on tax charges, announced the Justice Department and Internal Revenue Service (IRS).
Larry E. Couchot, 59, who is the president and part owner of a CPA firm in Centerville, Ohio, was also ordered to pay $40,711 in restitution and a $10,000 fine, and to serve four months of community confinement followed by two months of home confinement following his prison term. Couchot’s sentencing today follows the sentencing of three of his tax clients, Jon B. Field, of Dublin, Ohio, Paul A. Butler, also of Dublin, and Eric P. Schilder, of Marion, Ohio, who were all associated with Cadillac Ranch restaurants.
On June 5, 2014, Couchot pleaded guilty to two tax fraud charges and admitted that he assisted in the preparation of false individual income tax returns for his clients Jon B. Field, Butler and Schilder, which caused a tax loss of over $191,000 to the IRS. Jon B. Field, along with his associates Butler and Schilder and his brother Joel Field, owned and operated the Cadillac Ranch restaurant enterprise.
Joel A. Field also pleaded guilty to tax charges earlier this year, but his tax charges were unrelated to Couchot. His sentencing is scheduled to take place in November.
According to the documents filed with the court, during 2006 through 2010, Couchot prepared false federal income tax returns for his clients Jon B. Field, Butler and Schilder. According to the court filing, the three clients used a substantial amount of company funds for personal purposes, which included payments for their personal cars, car insurance, country club dues and their individual income tax liabilities. In addition, the individuals made substantial charges for personal purposes on credit cards that were paid for with company funds. Couchot also admitted that he believed that Jon B. Field used company funds to pay for personal expenditures including lawn services, repairs and maintenance to personal residences, granite counter tops, TV and audio systems, and other expenditures that were personal in nature.
Couchot admitted that he prepared false tax returns for these individuals which failed to report all of the above personal expenditures as income on the individuals’ income tax returns. Couchot pleaded guilty to aiding and assisting in the preparation of a false income tax return for the year 2009 for Jon B. Field, and to preparing a false income tax return for Schilder for the year 2007 which reported only $68,000 of income despite the fact that the business records of the company showed that Shilder earned over $129,000 in that year. Couchot admitted that after the false return was filed with the IRS on behalf of Schilder, he created a false summary which he retained in his records to support the false income of $68,000. The clients were sentenced for their crimes by Judge Sargus earlier this year, and Jon B. Field was sentenced to serve time in jail for his conduct.
These cases were investigated by the IRS-Criminal Investigation and are being prosecuted by Trial Attorney Richard M. Rolwing and Senior Litigation Counsel John E. Sullivan of the Justice Department’s Tax Division. Additional information about the Tax Division and its enforcement efforts may be found on the division website. Additional information about tax fraud schemes to watch out for may be found on the IRS-Criminal Investigation website.
Owner of Cuyahoga Falls Business Accused of Stealing $1.5 Million from Healthcare PlansRead the Press Release
A seven-count indictment was filed today accusing a former Copley resident of stealing more than $1.5 million from healthcare plans he administered and using the money to pay for bonuses, operating expenses, luxury car leases and a country club membership, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Robert Hartenstein, 61, was indicted of seven counts of theft from a health benefit program.
“This defendant was entrusted with millions of dollars to pay for hospital stays and medical tests, but instead betrayed that trust and used his clients’ money for fancy cars, lavish entertainment and his own business operations,” Dettelbach said.
Hartenstein in 1994 started Professional Benefits Association (PBA), a company that was a third-party administrator of healthcare plan benefits. It was located in Cuyahoga Falls and had a branch office in Austintown. Hartenstein was the majority owner, chief executive officer and chairman and secretary of its board of directors.
PBA had several clients that were companies which sponsored self-funded health care benefit plans for their employees. These companies hired PBA and paid it a fee to administer their benefit plans. Hartenstein knew PBA was required by law and by contract to establish individual segregated bank accounts for each of the client companies to hold, in trust, the funds the companies sent to PBA to pay claims from medical service providers, according to the indictment.
From at least 2000 through 2010, Hartenstein caused, authorized and directed expenditures from PBA’s operating account. Such expenditures included salaries and periodic bonuses to Hartenstein and PBA employees, payments to lease luxury cars and a country club membership Hartenstein used and an entertainment account Hartenstein used, according to the indictment.
A PBA employee identified in the indictment only as L.W. began regularly depositing plan funds from the companies into the PBA operating account instead of depositing those funds into the companies’ respective segregated trust accounts, as required by law and PBA’s contracts with the companies. This improper comingling of funds was done with Hartenstein’s knowledge, according to the indictment.
Hartenstein learned in 2008 or earlier that PBA did not have sufficient funds to pay the medical service provide claims for which the companies had already provided funds in trust to PBA. When he learned of the shortfalls, Hartenstein directed PBA employees to withhold payments from service providers for increasing periods of time. Employees made up excuses for the delays at Hartenstein’s direction, according to the indictment.
Hartenstein did not inform the companies of the shortfalls. Instead, he directed PBA employees to divert funds to pay for other outstanding claims. He misled PBA clients about the status of payments and why claims had not been paid. At Hartenstein’s direction, PBA employees made up false excuses for lack of payment to companies or falsely claimed payment had been made, according to the indictment.
According to the indictment, the health benefit plans that Hartenstein defrauded were for the following organizations: Guyan International, Inc. dba the Permco ($501,380); Pritchard Mining Company, Inc. ($435,837); Hocking Athens Perry Community Action ($384,574); O’Bleness Memorial Hospital ($91,877); Precision Gear ($54,612); Lordstown Schools ($32,835) and the Joseph Badger Local Schools ($29,357).
This case is being prosecuted by Assistant U.S. Attorney Rebecca Lutzko following an investigation by U.S. Department of Labor, Office of Inspector General and Employee Benefits Security Administration.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
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.
Owner of Harrisburg Healthcare Services Firm Charged with Additional OffensesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury returned a superseding indictment yesterday charging Rose Umana, 47, Mechanicsburg, the owner and operator of Vision Healthcare Services, Inc., with additional health care fraud and money laundering offenses.
According to United States Attorney Peter Smith, the superceding indictment charges Umana with health care fraud and money laundering in connection with operation of Vision Healthcare, 4113 Linglestown Road, Harrisburg. The new charges are in addition to 34 offenses brought in an indictment returned May 7.
The 36-count superseding indictment alleges that Umana created false identification documents and fictitious occupational licenses for workers not licensed at the level represented on the license and then submitted bills to Medicaid for medical services purportedly provided by the workers, billed Medicaid for services provided by someone other than the person claimed to be the provider, and billed Medicaid for services not provided or provided by someone not qualified to provide the service.
In addition, the grand jury charged that Umana laundered and concealed at least $291,000 in proceeds derived from this criminal activity. The superseding indictment alleges that Umana conducted at least 32 monetary transactions totaling $673,733 with proceeds derived from the fraud in amounts greater than $10,000. The superseding indictment also alleges that approximately $307,000 in three bank accounts held by Umana are forfeitable to the government.
“Medicaid Home Care companies that steal our health benefits, and lie about their level of competence, drain programs of money and put patients at risk ” said Nick DiGiulio, Special Agent in Charge for the Inspector General’s Office of the United States Department of Health and Human Services in Philadelphia. “We will continue to work energetically with our partners to investigate those that are accused of robbing health care dollars and mistreating Medicaid recipients.”
Health care fraud is punishable by up to 20 years in prison, false statements relating to health care matters carries a maximum term of imprisonment of five years, money laundering is punishable by up to 20 years’ imprisonment, conducting monetary transactions with criminal proceeds in excess of $10,000 is punishable by up to 10 years’ imprisonment, and identity theft carries a two-year mandatory minimum sentence that must be served consecutively to any other sentence.
This case is part of a coordinated federal and state investigation involving the Office of Inspector General, Health and Human Services; Internal Revenue Service Criminal Investigations; and the Medicaid Fraud Control Section of the Pennsylvania Office of Attorney General. Special Assistant U.S. Attorney Heather Albright of the State Attorney General’s Office and Assistant U.S. Attorney Christy H. Fawcett are prosecuting the case.
October Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 32 indictments charging 38 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Abraham Amador-Mendoza, age 41, is charged with illegal reentry into the United States on or about September 17, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Javier Antonino-Miguel, age 31, is charged with illegal reentry into the United States on or about September 23, 2014, following deportation as a felon. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* David S. Baird, age 33, is charged in a four-count Indictment. Count I of the Indictment alleges the defendant used or carried a firearm during and in relation to, or possessed a firearm in furtherance of, the drug trafficking offense alleged in Counts II and III. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to Life to be served consecutive to any other sentence imposed, a $250,000 fine, a 5 year term of supervised release and a $100 special assessment for each count. Count II of the Indictment charges Baird with conspiracy to distribute a mixture containing methamphetamine on or about July 31, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment.
Count III of the Indictment charges the defendant with possession with intent to distribute a mixture containing methamphetamine on or about July 31, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count IV of the Indictment charges Baird with felon in possession of a firearm on or about July 31, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Marcus Chiles, age 34, is charged in a four-count Indictment. Count I of the Indictment charges the defendant with conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base beginning on or about January 1, 2013, and continuing to on or about May 30, 2014. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release and a $100 special assessment. Counts II, III, and IV of the Indictment charge Chiles with possession with intent to distribute a mixture containing cocaine base on or about April 3, 2014, May 30, 2014, and July 8, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count.
* Carlos Humberto Collazos-Vallecilla, age 40, of South Valley, California, is charged with possession with intent to distribute 1 kilogram or more of heroin on or about October 6, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release and a $100 special assessment.
* Daniel J. Converse, age 50, is charged with interstate transportation of a stolen motor vehicle from the State of Nebraska to the State of Illinois from on or about April 12, 2014, through on or about October 15, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jose Corona-Rea, age 25, of Broken Bow, Nebraska, is charged with illegal reentry into the United States on or about September 1, 2014, following deportation as a felon. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Nathaniel J. Cullum, age 34, is charged with felon in possession of a firearm on or about June 19, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Rodolfo Esquivel, age 30; Alejandro Garcia-Roa, age 52; Agueda Arroyo, age 34; Ernesto Arroyo, age 60, are charged with conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture of methamphetamine beginning on or about August 1, 2014, and continuing to on or about October 15, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in Count I of the indictment, including but not limited to a total of $82,635.00 in United States currency seized on October 15, 2014, should be forfeited to the United States.
* Froylan Chan, age 32; Angel Gabino-Gonzalez, age 24; Quirino Gabino-Gonzalez, age 23; and Victor Lorenzo-Gallardo, age 25; all of Omaha, are charged in a two-count Indictment. Count I of the Indictment charges the defendants with conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture of methamphetamine; 500 grams or more of a mixture of cocaine; and 28 grams or more of a mixture of cocaine base beginning as early as June 10, 2014, and continuing to on or about October 7, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Froylan Chan, Angel Gabino-Gonzalez and Quirino Gabino-Gonzalez with possession with intent to distribute 500 grams or more of a mixture of methamphetamine; 500 grams or more of a mixture of cocaine; and 28 grams or more of a mixture of cocaine base on or about October 7, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in Counts I and II of the indictment, including but not limited to $7,642.00 in United States currency seized on October 7, 2014, should be forfeited to the United States.
* Eduardo Garcia-Valdez, age 32, of Omaha, is charged with illegal reentry into the United States on or about October 6, 2014, following deportation as a felon. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Daniel Goynes, age 22, is charged in a four-count Indictment. Counts I and II of the Indictment charge the defendant with possession with intent to distribute 28 grams of a mixture of cocaine base on or about June 28, 2014, and on or about June 30, 2014. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release and a $100 special assessment for each count. Count III of the Indictment alleges the defendant used or carried a firearm during and in relation to, or possessed a firearm in furtherance of, the drug trafficking offense alleged in Count IV. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to Life to be served consecutive to any other sentence imposed, a $250,000 fine, a 5 year term of supervised release and a $100 special assessment. Count IV of the Indictment charges Goynes with possession with intent to distribute a mixture of cocaine base on or about July 11, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Deandrae Johnson, age 39, is charged in a four-count Indictment. Count I of the Indictment charges the defendant with possession with intent to distribute a mixture containing cocaine base on or about May 16, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. Counts II and III of the Indictment charge Johnson with possession with intent to distribute 28 grams or more of a mixture containing crack cocaine on or about May 19, 2014 and on or about May 22, 2014. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment for each count. Count IV of the Indictment charges the defendant with felon in possession of a firearm on or about August 18, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Patrick Keough, of Wood River, Nebraska, is charged in a three-count Indictment. Counts I and II charge Keough with transporting hazardous waste from Minden, Nebraska to a field near Crete, Nebrask, to a facility which did not have a permit issued to it by the United States Environmental Protection Agency or the Nebraska Department of Environmental Quality, to treat, store or dispose of hazardous waste. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count. Count III of the Indictment charges the defendant with storing hazardous waste without a permit. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Timothy James Kirsch, age 31, of Omaha, is charged with failure to register as a sex offender in the State of Nebraska from on and before May 29, 2014, and continuing through July 2, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a fine of $250,000, supervised release for life, and a $100 special assessment.
* William D. Knutson, age 55, of Omaha, is charged with theft of government money from the Social Security Administration. The defendant converted to his own use retirement benefit payments to which he knew he was not entitled, having a value of approximately $193,298.00. The maximum possible penalty if convicted is 10 years imprisonment, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment.
* Veronica Lorenzo Ruiz, is charged in a four-count Indictment. Count I of the Indictment alleges that on or about June 28, 2013, the defendant used a Nebraska ID Card and a social security card knowing said documents were not issued lawfully for her use. The maximum possible penalty if convicted is 5 years imprisonment, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment. Count II charges that on or about June 28, 2013, Lorenzo Ruiz misused a Social Security Card knowing that said document was not issued lawfully for her use. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count III of the Indictment charges the defendant with using a means of identification of another person during and in relation to a felony violation on or about June 28, 2013. The maximum possible penalty if convicted is mandatory 2 year imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count IV of the Indictment alleges Lorenzo Ruiz falsely claimed United States Citizenship on or about June 28, 2013. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Manuel Martinez-Bautista, age 37, of Grand Island, Nebraska, is charged with illegal reentry into the United States on or about September 26, 2014, following deportation as an aggravated felon. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Everardo Moline-Cisneros, age 23, is charged with illegal reentry into the United States on or about September 27, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Miguel Alberto Monzon, age 42, of Norfolk, Nebraska is charged in a two-count Indictment. Count I of the Indictment charges the defendant with possession with intent to distribute 50 grams or more of a mixture containing methamphetamine on or about September 26, 2014. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Monzon with possession with intent to distribute a mixture containing heroin on or about September 26, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $2,000,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Alex Morales-Molina, age 27, of Omaha, is charged with illegal reentry into the United States on or about October 7, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Frank Oliver, age 30, is charged with felon in possession of a firearm on or about October 24, 2013. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Kenneth Charles Poston, III, age 37, of Lincoln, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with distribution of child pornography on or about February 10, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment. Count II of the Indictment charges Poston possession of child pornography on or about August 29, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment. The indictment also alleges property used or intended to be used as part of this violation should be forfeited to the United States.
* Juan Rodriguez-Rivas is charged with illegal reentry into the United States on or about September 15, 2014, following deportation as a felon. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Alfredo Rojas-Martinez, age 47, is charged with illegal reentry into the United States on or about September 29, 2014, following deportation as a felon. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Hugo Salgado-Gonzalez, age 42, of Omaha, is charged with illegal reentry into the United States on or about September 18, 2014, following deportation. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Gilberto Salinas-Martinez, of Omaha, is charged in a three-count Indictment. Count I of the Indictment alleges that on or about Septemer 4, 2012, the defendant falsely misused a Social Security Card knowing that said document was not issued lawfully for his use. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment alleges that on or about September 4, 2012, Salinas-Martinez used a State of Oklahoma non-driver’s License No. and a social security card knowing said documents were not issued lawfully for his use. The maximum possible penalty if convicted is 5 years imprisonment, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment. Count III charges that on or about June 28, 2013, Lorenzo Ruiz misused a Social Security Card knowing that said document was not issued lawfully for his use. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment alleges the defendant falsely claimed United States Citizenship on or about September 4, 2012. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Leland Brett Saul, age 50, of Omaha, is charged with failure to register as a sex offender in the State of Nebraska from on and before September 26, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a fine of $250,000, supervised release for life, and a $100 special assessment.
* Michael Settles, age 27, is charged with possession of a short shotgun not registered to him in the National Firearms Registration and Transfer Record. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Christopher Shea, age 33, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine beginning on or about June 1, 2014, and continuing to on or about October 9, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Shea with distribution of methamphetamine on or about September 12, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count III of the indictment charges the defendant with possession with intent to distribute 50 grams of more of methamphetamine on or about October 9, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Derel Smith, age 27, is charged in a three-count Indictment. Counts I thru III of the Indictment charge the defendant with possession with intent to distribute a mixture of cocaine base on or about June 13, 2014, on or about June 26, 2014, and on or about July 8, 2014 The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count.
* Robert R. Stoppel, age 55, of Lincoln, is charged with theft of government money from the Social Security Administration. The defendant converted to his own use retirement benefit payments to which he knew he was not entitled, having a value of approximately $19,533.00. The maximum possible penalty if convicted is 10 years imprisonment, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment.North Royalton Man Indicted for Home Loan-Modification SchemeRead the Press Release
A North Royalton man was indicted today for operating a loan-modification scheme in which he defrauded more than 90 homeowners struggling to make their mortgage payments out of at least $250,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Robert Walker, age 43, was indicted on 21 counts of mail fraud and two counts of wire fraud.
Walker is accused of making multiple false representations. He convinced homeowners on the verge of foreclosure to pay himself and his company an up-front fee of at least $1,995 but then did little or no work to get a loan modification for customers, according to the indictment.
The indictment alleges that Walker promised customers that, if not modification was obtained, 80 percnet of the fee would be reimbursed. But Walker never intended to reimburse those fees and when he failed to obtain a loan modification, he regularly refused the promised reimbursement.
“This defendant preyed upon people struggling to pay the bills and instead of helping them, he ripped them off,” Dettelbach said.
“While these people were facing hard times with the very real possibility of losing their homes, this predator took full advantage of their vulnerable position and lined his pockets with money,” Anthony said.
According to the indictment filed in federal court:
Walker incorporated and owned The Modification Group, or TMG, where he supervised and directed the employees. TMG did business under various names, including The Modification Group 4, US Modification Group and Loan Modification Group, among others. It had offices at various times in Broadview Heights, Middleburg Heights, Bedford, Parma Heights, Ravenna and Cleveland.
TMG solicited people who were struggling to pay their home mortgages or that were pending foreclosure and offered to help improve their financial situation and avoid foreclosure by interceding on their behalf with the lending institution and obtaining a loan modification. TMG advertised itself – using direct mailings, telephone calls, a website and internet and radio advertisements – as “specializ(ing) in loan modifications, debt settlements, credit repair, and financial planning services” and having “experienced negotiators that will secure your home with the lowest fixed rate available.” TMG claimed it “will eliminate or reposition all late payments back into your loan, bringing the account current, while also lowering your interest rate or payment, making it easier for you to afford.”
From 2009 through 2011, Walker devised a scheme to defraud by making representations that he knew TMG could not keep and had no intention of keeping, including: “”Are You In A Loan You Can’t Afford? We Will Modify It. Guaranteed.” Or “What [TMG] Can Do To Help: Lower interest rates (2-5.5% fixed) giving you a reduction in monthly payments; eliminate or shorten 2nd Lien, and/or lowering overall principle balance; Position yourself out of an interested only or adjustable rate mortgage and into a fixed 30 or 40 year payment.”
Walker, through TMG, required consumers to pay $1,995 or 1 percent of the mortgage balance, whichever was greater, up front, before TMG worked on obtaining a loan modification.
Walker directed his employees at TMG to solicit and accept clients for whom he knew TMG would not be able to obtain loan modifications on terms that that customers could realistically afford. Through TMG, he required customers to enter into written service agreements that were substantially one-sided, in favor of TMG. He also directed employees to tell potential customers that TMG would refund 80 percent of the fee paid if TMG failed to obtain a loan modification, when Walker had no intention of refunding the fee.
Walker, through TMG, prohibited customers from contacting their lending institution and directed customers to send any and all correspondence from their lenders to TMG.TMG often failed to obtain any loan modification for the customer. In some cases, TMG never contacted its customer’s lending institution to discuss a modification even though the customer had paid substantial monies to Walker and TMG to do so.
Walker and his employees at TMG often created illegitimate reasons that they claimed voided TMG’s contract to avoid refunding customer’s fees. For example, TMG often told customers that they had not provided requested documents quickly enough, and terminated their contracts without a refund.
Walker, through TMG, told customers who attempted to cancel their contracts that doing so was a breach that voided their right to a refund. He often refused to issue a refund for customers for whom TMG had failed to obtain a loan modification unless the customer filed a complaint with a consumer protection agency.Defrauded customers include residents in Lakewood, Cleveland, Eastlake, Streetsboro and North Ridgeville, as well as North Carolina, Virginia, Connecticut, Indiana and elsewhere, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Rebecca Lutzko following an investigation by the Federal Bureau of Investigation and the Ohio Attorney General’s Office, Consumer Protection Section.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.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.