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10 December 2014
Civil Rights Settlement in Manhattan Federal Court Requires Major Real Estate Developer to Make New and Recent Rental Complexes Accessible to All New YorkersRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today the settlement of a federal civil rights lawsuit with the RELATED COMPANIES (“RELATED”) by consent decree. Under the settlement, RELATED agrees to establish procedures that will ensure that its ongoing and future development projects, such as the residential complexes at the Hudson Yards development on Manhattan’s West Side, will comply with the accessibility requirements of the federal Fair Housing Act (“FHA”). RELATED also agrees to make retrofits at four residential rental complexes in Manhattan – One Carnegie Hill, Tribeca Green, 500 West 30th Street, and 529 West 29th Street – to make them more accessible to individuals with disabilities. Additionally, RELATED agrees to inspect its twelve other residential rental complexes in Manhattan and, where necessary, make retrofits at those buildings as well. Finally, RELATED agrees to provide up to $1.9 million to compensate aggrieved persons and pay a civil penalty of $100,000. The consent decree was approved today by U.S. District Judge Shira A. Scheindlin.
Manhattan U.S. Attorney Preet Bharara said: “For over two decades, the Fair Housing Act has required newly built residential rental buildings to be accessible to people with disabilities. Yet developers in New York City have too often disregarded that requirement. It is encouraging that a major developer like Related has embraced its obligations under the law by agreeing to establish a process for ensuring accessibility at its ongoing and future development projects and to make retrofits in thousands of apartments. We hope this settlement will serve as a positive example for the developer community. But any developer that continues to ignore its obligation to comply with the law must understand that my Office is prepared to use all legal tools available to enforce the Fair Housing Act and ensure that New Yorkers with disabilities have full access to rental apartments in New York City.”
The FHA’s accessible design and construction provisions require new multi-family housing complexes constructed after January 1993 to have basic features accessible to persons with disabilities. In March 2014, the United States filed this lawsuit against RELATED and two architectural firms, alleging that a number of past and ongoing rental projects designed and constructed by RELATED and the architects, including One Carnegie Hill and Tribeca Green, do not comply with the FHA’s accessibility requirements.
Under the settlement, RELATED agrees that, for every multi-family housing project it constructs in the next four years, it will retain an FHA compliance consultant to ensure that the building, as constructed, will comply with the FHA’s accessibility requirements. For example, the FHA consultant will advise RELATED on the selection of fixtures and appliances and whether deviating from the architects’ drawings will affect accessibility. The FHA consultant also will conduct a site visit to identify non-compliant conditions and recommend appropriate solutions prior to the completion of construction. In addition, RELATED agrees to institute policies and training to ensure that its own employees and agents will comply with the FHA’s accessibility requirements.
Further, the settlement also requires RELATED to make extensive retrofits at two rental complexes, One Carnegie Hill and Tribeca Green, and to commit to additional retrofits at two other rental complexes that have been inspected, 500 West 30th Street, and 529 West 29th Street, in order to make them accessible. RELATED also agrees to arrange for inspection at its 12 other rental complexes in Manhattan and, where necessary, to make retrofits at those properties as well. Together, the 16 buildings covered by the consent decree contain more than 4,500 rental apartments.
Finally, the settlement requires RELATED to provide up to $1.9 million in funds to compensate aggrieved persons. RELATED also agrees to pay a civil penalty of $100,000.
The government’s lawsuit also asserted claims against the architects of One Carnegie Hill and Tribeca Green, ISMAIL LEYVA ARECHITECTS and ROBERT M. STERN ARCHITECTS. The United States is engaged in active negotiations with those architects regarding a potential settlement.
This settlement resolves claims against the developers in this eighth FHA lawsuit brought by the United States in Manhattan federal court to rectify inaccessible conditions at residential apartment buildings. The United States has settled claims against developers in the seven prior cases through consent decrees. A ninth lawsuit involving inaccessible design and construction of residential apartment buildings, against the Durst Organization, is still pending.
Aggrieved individuals may be entitled to monetary compensation from the fund created through today’s settlement. Aggrieved individuals may include those who were:
- Injured by a lack of accessible features at One Carnegie Hill, Tribeca Green, or the other properties constructed by RELATED;
- Discouraged from living at One Carnegie Hill, Tribeca Green, or the other properties constructed by RELATED because of the lack of accessible features;
- Required to pay to have an apartment at One Carnegie Hill, Tribeca Green, or the other properties constructed by RELATED made accessible,
- Prevented from having visitors because of a lack of accessible features at One Carnegie Hill, Tribeca Green, or the other properties constructed by RELATED; or
- Otherwise injured or discriminated against on the basis of disability as a result of the design or construction of One Carnegie Hill, Tribeca Green, or the other properties constructed by RELATED.
People who may be entitled to compensation should file a claim by contacting the Civil Rights Complaint Line at (212) 637-0840, using the Civil Rights Complaint Form available on the United States Attorney’s Office’s website http://www.justice.gov/usao/nys/civilrights.html, or sending a written claim to:
U.S. Attorney’s Office, Southern District of New York
86 Chambers Street, 3rd Floor
New York, New York 10007
Attention: Chief, Civil Rights Unit
The case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorneys Li Yu, Emily E. Daughtry, Carina H. Schoenberger, and Jessica J. Hu are in charge of the case.
Related Companies Consent Decree
Chelsea Man Pleads Guilty to Student Financial Aid FraudRead the Press Release
BOSTON – A Chelsea man pleaded guilty yesterday to submitting fraudulent financial aid applications to support his daughter’s Harvard College tuition.
Joseph N. Fonge, 59, pleaded guilty to three counts of wire fraud. U.S. District Court Judge William G. Young scheduled sentencing for March 4, 2015.
Fonge filed fraudulent financial information, including false federal tax returns, in support of applications for financial aid for his daughter while she was a student at Harvard College from 2010 through 2012. Based on the applications, Fonge’s daughter was approved for aid totaling more than $160,000 over the three school years. The same false information was used to support a financial aid application in the amount of $46,600 for Fonge’s second daughter who was attending the University of Rochester in 2010.
The charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.United States Attorney Carmen M. Ortiz and Brian Hickey, Special Agent in Charge for the U.S. Department of Education, Office of Inspector General, Regions I & II, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Victor A. Wild of Ortiz’s Economic Crimes Unit.
California Man Gets 27-Year Prison Sentence for Child Exploitation CrimesRead the Press Release
PITTSBURGH – Edward Hilts, a former resident of Fallbrook, Calif., was sentenced to 324 months in federal prison for committing several child sexual exploitation crimes, United States Attorney David J. Hickton announced today.
Hilts, age 69, was sentenced by United States District Judge Donetta W. Ambrose. Judge Ambrose also imposed a lifetime term of supervised release to follow the prison sentence and ordered Hilts to register as a convicted sex offender.
In June 2014, Hilts was convicted at the conclusion of a federal jury trial of attempting to persuade, induce, or entice a 14-year-old child to engage in illegal sexual acts; of traveling from California to Pennsylvania with the intent to engage in illegal sexual acts with a 14-year-old child; of transporting sexually explicit images of children from California to Pennsylvania; and of possessing sexually explicit images of children. In addition to evidence of the commission of these crimes by Hilts, the prosecution presented evidence at sentencing that Hilts had previously sexually molested a 13-year-old child in Thailand; that Hilts had sexually molested another child for several years in the 1980’s; and that Hilts absconded from bond while his federal case was pending to travel to meet up with a 16-year-old child in Vancouver, British Columbia. Hilts communicated with the 16-year-old child about his desire to engage in sex acts with her 10-year- old sister.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Federal Bureau of Investigation, the Allegheny County District Attorney's Office, the Pittsburgh High Tech Crimes Task Force, and the Vancouver (British Columbia) Police Department investigated the case leading to the conviction of Hilts.
This case was a product of Project Safe Childhood. Launched in February 2006, Project Safe Childhood is a nationwide initiative designed to protect children from sexual exploitation and abuse. Led by the U.S. Attorneys' Offices and the Child Exploitation and Obscenity Section of the Department of Justice, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
British Citizen Pleads Guilty to Conspiracy to Commit Visa FraudRead the Press Release
OAKLAND – Madhu Santhanam pleaded guilty in federal court in Oakland today to conspiracy to commit visa fraud, announced United States Attorney Melinda Haag and Special Agent in Charge David Zebley of the U.S. Department of State, Diplomatic Security Service.
In pleading guilty, Santhanam admitted that, between September 2009 and June 2013, he made at least 25 fraudulent I-129 petitions. These documents are required by U.S. immigration laws and regulations to be submitted in order to obtain H-IB visas for highly skilled immigrant applicants seeking to work in the United States. In these petitions, an American employer must certify that it has high-technology jobs that it cannot fill with U.S. citizens. In many of Santhanam’s fraudulent I-129 applications, he falsely represented that the applicants would be working at his company, MAAN Systems, Inc., on an in-house, proprietary product named “e-ntelligent Applications manager.” In others, he falsely represented that the applicants would be working at Western Digital and Walmart, and he included forged documentation, including forged employment offer letters, with each of these petitions. In his plea agreement, Santhanam agreed to pay a forfeiture money judgment in the amount of $400,000.
Santhanam, 41, of Union City, was arrested on Nov. 19, 2013, and made his initial appearance in federal court after being charged by federal complaint on Nov. 14, 2013. He has remained free on bond since his initial appearance. Santhanam was charged by information on March 13, 2014.
Santhanam’s sentencing hearing is scheduled for May 27, 2015, before United States District Judge Yvonne Gonzalez Rogers. The maximum statutory penalty for conspiracy to commit visa fraud, in violation of 18 U.S.C. §§ 371 and 1546, is a maximum term of 5 years in prison, a fine of $250,000, and 3 years of supervised release. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Brian C. Lewis is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is the result of an investigation led by the U.S. Department of State Diplomatic Security Service’s representative to the Document and Benefit Fraud Task Force (DBFTF) overseen by U.S. Immigration and Customs Enforcement HSI. The DBFTF is a multi-agency task force that coordinates investigations into fraudulent immigration documents. U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security also assisted with the investigation.
Antlers Man Sentenced to 27 Months for Failure to Register as Sex OffenderRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that PETER GLENN BAKER, age 42, of Antlers, Oklahoma, was sentenced to 27 months imprisonment, followed by 5 years of supervised release for Failure to Register as Sex Offender, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3).
Charges arose from an investigation by the United States Marshal Service. The defendant was indicted in July, 2014 and pled guilty in August, 2014.
The Indictment alleged that from in or about October 2013 until in or about December 2013, in the Eastern District of Oklahoma, and elsewhere, the defendant, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received a felony conviction from the State of Washington on or about December 2, 2004, for the felony offense of Rape of a Child in the Third Degree, traveled in interstate commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparolable sentence.
Assistant United States Attorney Edward Snow represented the United States.
Anthony, N.M., Man Sentenced to Ten Years for Heroin Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Daniel Arrieta, 39, of Anthony, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 120 months in prison followed by three years of supervised release for his heroin trafficking conviction.
Arrieta was arrested on May 10, 2013 on a criminal complaint charging him with participating in a heroin trafficking conspiracy. According to the criminal complaint, Arrieta was arrested after he sold 3.6 grams of heroin which was packaged for retail distribution to an undercover agent in exchange for $200. The undercover transaction took place during two meetings in Anthony, N.M., and El Paso, Texas, on April 18, 2013.
Arrieta pled guilty on Dec. 13, 2014, to a felony information charging him with participation in a heroin distribution conspiracy.
This case was investigated by the Las Cruces office of the FBI and was prosecuted by Assistant U.S. Attorneys Sarah M. Davenport and Shaheen Torgoley.
Allentown Man Charged with Sex TraffickingRead the Press Release
PHILADELPHIA - Corderro Cody, 27, of Allentown, Pennsylvania, was charged by indictment, unsealed today, with conspiracy to commit sex trafficking by force, fraud, or coercion, four counts of sex trafficking by force, fraud, or coercion, and conspiracy to transport individuals both intrastate and interstate for the purpose of prostitution, announced United States Attorney Zane David Memeger.
The indictment alleges that Cody recruited women to work as prostitutes, referred to his prostitution business as the “program,” and advertised the women on Backpage.com. The women were sometimes driven to other states and forced to perform sexual acts. Cody recovered and kept most, if not all, of the money generated by the sexual acts, and used physical force in the form of beatings when the women did not adhere to the “program,” and to maintain the women performing commercial sexual acts. In one instance, the indictment alleges that Cody physically assaulted one of the women when she requested permission to go home to see her children for the Thanksgiving holiday.
If convicted the defendant faces a maximum possible sentence of lifetime imprisonment, a mandatory minimum 15 years in prison, a $1.5 million fine, a mandatory minimum five years of supervised release up to lifetime supervised release, and a $600 special assessment.
The case was investigated by Department of Homeland Security, Homeland Security Investigations and the Allentown Police Department, and is being prosecuted by Assistant United States Attorney Sherri A. Stephan.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Albuquerque Man Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
ALBUQUERQUE – Carl Weatherman, 32, of Albuquerque, N.M., pled guilty this morning to receipt of a visual depiction of a minor engaged in sexually explicit conduct under a plea agreement with the U.S. Attorney’s Office.
Weatherman was arrested on federal child pornography charges on April 8, 2014, based on a criminal complaint alleging receipt and possession of child pornography charges. According to the criminal complaint, the investigation into Weatherman was initiated by the Bernalillo County Sheriff’s Office (BCSO) in Dec. 2013, when a minor child reported seeing Weatherman watch child pornography and that Weatherman showed child pornography to the minor child. Between Dec. 2013 and Feb. 2014, the BCSO executed search warrants at Weatherman’s residence which authorized them to seize, among other things, computers, computer-related media and cellphones. Items seized by the BCSO during the searches were submitted for forensic examination by the New Mexico Regional Forensic Laboratory, and were found to contain images and videos consistent with child pornography.
Weatherman was indicted on May 7, 2014, and charged with one count of receipt of child pornography and one count of possession of child pornography.
During today’s proceedings, Weatherman entered a guilty plea to Count 1 of the indictment, charging him with receipt of child pornography. In his plea agreement, Weatherman admitted that between Aug. 2013 and Dec. 2013, he knowingly received child pornography on his computer.
Weatherman has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Weatherman faces imprisonment for a period not less than five years and not more than 20 years followed by a period of supervised release to be determined by the court. Weatherman will have to register as a sex offender after completing his prison sentence.
This case was investigated by the Albuquerque office of the FBI, the Bernalillo County Sheriff’s Office and the New Mexico Regional Forensic Laboratory, and is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 74 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Albert Entera Pingul Sentenced in U.S. District Court for Abusive Sexual ContactRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that ALBERT ENTERA PINGUL was sentenced today by Chief Judge Frances Tydingco-Gatewood, in the U.S. District Court of Guam, to thirty seven months incarceration, and five years supervised release.
Defendant PINGUL pled guilty on March 25, 2014, to one count of Abusive Sexual Conduct in violation of Title 18 U.S.C. Section 2244(a)(1). Defendant PINGUL, a Manager at the Orote Point Bowling Lanes on the U.S. Naval Base, coerced a female employee to enter a mechanic room where he engaged in sexual contact through the use of force. Defendant PINGUL was ordered to register with the Sex Offender Registry wherever he lives, works or attends school for the duration of his life. PINGUL was also ordered to undergo a sex offender assessment.
U.S. Attorney Limtiaco states, “The aggressive prosecution of all sexual offenses is a priority of the United States Attorney’s Office. The U.S. Attorney’s Office acknowledges the victim’s courage and strength in coming forward and reporting to law enforcement the unwanted sexual contact.”
The U.S. Attorney notes that defendants who have committed sexual abuse of adults or children, have a duty to register and keep their registration current with the Sex Offender Registry in their jurisdiction. Sex offenders who travel to Guam and who reside on Guam must inform the Guam Sex Offender Registry where they reside, work, or attend school - they must also periodically update their registration information. The Sex Offender Registry was created in order to protect the public by protecting victims, preventing further victimization and informing the public of the whereabouts of sex offenders. Guam’s Sex Offender Registry can be found online at www.guamcourts.org.
U.S. Attorney Limtiaco also notes that this prosecution is part of the U.S. Department of Justice’s Project Safe Childhood (PSC) Initiative, a nationwide commitment to aggressively prosecute defendants who engage in the sexual victimization of children and adults, possess or receive child pornography, and sex offenders who fail to register with the jurisdiction’s Sex Offender Registry.
The investigation was conducted by Special Agents of the Naval Criminal Investigation Service (NCIS). The case was handled by Assistant U.S. Attorney R. San Nicolas.
9 December 2014
Yuba City, California, Man Sentenced to 46 Months in Prison for Racially Motivated Attack on White Man and African-American WomanRead the Press Release
Anthony Merrell Tyler, 34, of Yuba City, California, was sentenced today by U.S. District Court Judge John A. Mendez to serve 46 months in prison for violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act. The crime involved a racially motivated attack by Tyler and two co-defendants, Billy Hammett, 30, and Perry Jackson, 29, on a white man and an African-American woman in Marysville, California, in 2011. In addition to his term of incarceration, Tyler was ordered to serve three years of supervised release upon his release from prison and to pay $175 in restitution.
According to documents filed with the court, around 10:45 p.m. on April 18, 2011, a white man and an African-American woman parked their car at a convenience store in Marysville. Shortly afterward, the three defendants attacked the man and woman because of their race. Jackson punched him twice in the head through the open passenger window. At the same time, Hammett opened the driver-side door and kicked the woman in the chest. Seconds later, Tyler smashed the car’s windshield with a crowbar, sending shattered glass into the passenger compartment. As the attack continued, the woman managed to take refuge inside the convenience store and the man struggled to get away. All three assailants then descended upon the male victim and began attacking him in the parking lot. He sustained abrasions on his right forearm and knees, while the woman suffered bruising to her chest. None of the defendants knew their victims.
In today’s hearing, and during Hammett and Jackson’s proceedings, Judge Mendez considered the defendants’ backgrounds and criminal histories. Tyler has the words “white pride” tattooed down the backs of his arms and a swastika on his left upper arm. He has previously acknowledged being a member of the Yuba County Peckerwoods, a local white supremacist group. Hammett, who has a tattoo of the words “white power” across his abdomen, was previously convicted for the unprovoked assault on a 72-year-old African-American man and was sentenced on March 25, 2014, to 87 months in prison. Jackson, who has the words “white power” tattooed in block letters down his shins, was sentenced on April 29, 2014, to 70 months in prison. Tyler entered his guilty plea on March 11, 2014.
“These three defendants targeted the victims because of their race,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “This type of attack causes harm not only to the immediate victims, but tears at the fabric of our communities and society itself. The department will continue to vigorously prosecute such acts of racial violence.”
“Racially motivated violence not only threatens the harmony of our diverse communities, it undermines the principle of equality under law, which is a foundation of our society,” said U.S. Attorney Benjamin B. Wagner for the Eastern District of California. “For these reasons, prosecuting hate crimes will continue to be one of our highest priorities.”
This case was investigated by the FBI, with assistance from the Yuba County Sheriff’s Office and the Yuba County District Attorney’s Office. The case was prosecuted by U.S. Attorney Wagner and Trial Attorney Chiraag Bains of the Justice Department’s Civil Rights Division.
Yuba City Man Sentenced to 46 Months in Prison for Racially Motivated Attack on White Man and African-American WomanRead the Press Release
SACRAMENTO, Calif. – Anthony Merrell Tyler, 34, of Yuba City, was sentenced today by U.S. District Judge John A. Mendez to serve 46 months in prison for violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act. The crime involved a racially motivated attack by Tyler and two co-defendants, Billy Hammett, 30, and Perry Jackson, 29, on a white man and an African-American woman in Marysville in 2011. In addition to his term of incarceration, Tyler was ordered to serve three years of supervised release upon his release from prison and to pay $175 in restitution.
According to documents filed with the court, around 10:45 p.m. on April 18, 2011, a white man and an African-American woman parked their car at a convenience store in Marysville. Shortly afterward, the three defendants attacked the man and woman because of their race. Jackson punched him twice in the head through the open passenger window. At the same time, Hammett opened the driver-side door and kicked the woman in the chest. Seconds later, Tyler smashed the car’s windshield with a crowbar, sending shattered glass into the passenger compartment. As the attack continued, the woman managed to take refuge inside the convenience store, and the man struggled to get away. All three assailants then descended upon the male victim and began attacking him in the parking lot. He sustained abrasions on his right forearm and knees, while the woman suffered bruising to her chest. None of the defendants knew the victims.
In today’s hearing, and during Hammett and Jackson’s proceedings, Judge Mendez considered the defendants’ backgrounds and criminal histories. Tyler has the words “white pride” tattooed down the backs of his arms and a swastika on his left upper arm. He has previously acknowledged being a member of the Yuba County Peckerwoods, a local white supremacist group. Hammett, who has a tattoo of the words “white power” across his abdomen, was sentenced on March 25, 2014, to 87 months in prison. He was previously convicted for the unprovoked assault on a 72-year-old African-American man. Jackson, who has the words “white power” tattooed in block letters down his shins, was sentenced on April 29, 2014, to 70 months in prison. Tyler entered his guilty plea on March 11, 2014.
“These three defendants targeted the victims because of their race,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “This type of attack causes harm not only to the immediate victims, but tears at the fabric of our communities and society itself. The department will continue to vigorously prosecute such acts of racial violence.”
“Racially motivated violence not only threatens the harmony of our diverse communities, it undermines the principle of equality under law, which is a foundation of our society,” said U.S. Attorney Benjamin B. Wagner for the Eastern District of California. “For these reasons, prosecuting hate crimes will continue to be one of our highest priorities.”
“No person should be victimized by another, let alone suffer an unprovoked, violent attack at the hands of a group motivated solely by hatred and prejudice,” said Special Agent in Charge Monica M. Miller of the Sacramento FBI. “Such bias-motivated crimes should be an unfortunate mark of the past; however, the FBI will thoroughly investigate such allegations to ensure justice is served.”
This case was investigated by the FBI, with assistance from the Yuba County Sheriff’s Office and the Yuba County District Attorney’s Office. The case was prosecuted by U.S. Attorney Wagner and Trial Attorney Chiraag Bains of the Justice Department’s Civil Rights Division.
Tri State Metal Company, Inc. Charged with Federal Tax and Currency Crimes Involving Millions of Dollars in Cash DealsRead the Press Release
CHICAGO — A Chicago company dealing in scrap metal has agreed to plead guilty to federal tax and currency transaction charges alleging that it engaged in cash transactions that resulted in underreporting its corporate income and underpaying its payroll taxes. The defendant, TRI STATE METAL COMPANY, INC., was charged in a criminal information filed today in U.S. District Court in Chicago. The case is the first prosecution resulting from an ongoing investigation of cash transactions in the local scrap metal industry being conducted by the Internal Revenue Service Criminal Investigation Division.
Tri State Metal, located at 1745 West Fulton St., in Chicago, was charged with one count of corruptly obstructing and endeavoring to obstruct and impede the IRS, and one count of structuring cash transactions in amounts less than $10,000. Through its attorneys, Tri State authorized the government to disclose that it will plead guilty to the charges. The company will be arraigned on a date to be determined in Federal Court.
The charges also include a forfeiture allegation claiming that $1.85 million in cash that was seized from a bank account and $118,420 in cash that was seized from Tri State’s offices, both in October 2012, are subject to criminal forfeiture.
According to the charges, between September 2008 and September 2012, Tri State obtained cash by negotiating checks made payable to fictitious individuals and used that cash to pay vendors and cash wages to employees, as well as to provide cash for the personal benefit of the deceased owner and president of Tri State, who was not named and was identified in the charges as Individual A. The cash transactions were designed to assist the vendors, employees and Individual A in understating their income on federal tax returns, the charges allege.
As part of the corrupt endeavor, Tri State sold scrap to another scrap metal dealer, identified as Business A and, in return, allegedly received approximately 769 checks from Business A, all made payable to fictitious individuals in amounts less than $10,000. Tri State allegedly failed to record these sales or the receipt of funds from Business A and failed to report the income on its corporate tax returns.
Individual A allegedly directed Tri State employees to issue checks payable to fictitious persons to obtain cash to pay vendors and employee wages. Tri State paid certain vendors with both cash and checks, with vendors indicating how much they wanted to be paid in cash, and Tri State employees allegedly manipulated documents to conceal the cash payments. During the four-year period, Tri State paid approximately 15 scrap metal vendors more than $6.17 million in cash, the charges allege.
The company also paid employees a portion of their wages with both cash and checks. Tri State issued tax forms to its employees and filed quarterly returns with the IRS that allegedly falsely underreported the amount of wages paid by failing to include the amount of cash. In total, Tri State allegedly paid its employees cash wages totaling more than $1.47 million and failed to collect and pay the IRS federal income tax withholdings, FICA taxes, and Medicare withholdings on the cash wages.
The charges further allege that Tri State cashed more than $6.41 million in checks drawn on its bank account and payable to fictitious payees at an unnamed currency exchange in Chicago. Tri State also allegedly cashed at the currency exchange more than $2.92 million in checks issued by Business A to Tri State in the name of fictitious payees.
Tri State allegedly filed false federal corporate income tax returns for 2009, 2010, and 2011, that understated its gross receipts or sales by more than $2.92 million. In addition, Tri State failed to report or otherwise account for approximately $840,720 in cash expenditures for the benefit of deceased Individual A, the charges allege.
The tax offense carries a maximum penalty of five years’ probation and a $500,000 fine, and the structuring offense carries a maximum penalty of five years’ probation and a $1 million fine, and each count carries an alternate maximum fine totaling twice the loss or twice the gain, whichever is greater. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and James C. Lee, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is being represented by Assistant U.S. Attorney Patrick King.
The public is reminded that criminal charges are not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Information
Three Sentenced for Involvement in Aryan Brotherhood of Texas Racketeering ConspiracyRead the Press Release
Three Aryan Brotherhood of Texas (ABT) gang members and associates from Houston and Dallas were sentenced to prison this week for their roles in the violent ABT enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Today, James Francis Sampsell, 44, of Waco, Texas, Rusty Eugene Duke, 32, of Dallas, Texas, and Steven Worthey, 42, of Houston, Texas, were sentenced to serve respective terms of 140 months, 216 months and 240 months, in federal prison by U.S. District Judge Sim Lake in the Southern District of Texas.
According to information presented in court, the three men were admitted members of ABT, a powerful race-based organization that operates inside and outside of state and federal prisons throughout Texas and the United States. Along with other ABT gang members and associates, they agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
The ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. Previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism, but over time, the ABT has expanded its criminal enterprise to include illegal activities for profit, according to court records.
In order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, arson, assault, robbery and threats against those who violated the rules or posed a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
The defendants sentenced this week are three of 36 defendants convicted of conducting racketeering activity through the ABT criminal enterprise, among other charges. The last defendants are set for sentencing next week.
This Organized Crime Drug Enforcement Task Force case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement, Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite, Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.
The case is being prosecuted by David Karpel of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Ed Gallagher and Tim Braley of the Southern District of Texas.
- Three Sentenced for Involvement in Aryan Brotherhood of Texas Racketeering Conspiracy
Three Men Indicted on Charges Related to the Armed Robberies of 10 Cell Phone StoresRead the Press Release
Allegedly Robbed Stores in Virginia and in
Anne Arundel, Baltimore and Montgomery Counties in Maryland
Baltimore, Maryland - A federal grand jury has indicted Parris Benjamin Chisholm, age 24, of Millersville, Maryland; Donald Scott Deans, age 22, of Largo, Maryland; and Tyran Antwain Lane, age 22, of New Carrollton, Maryland, on charges related to the robberies of 10 cell phone stores. The second superseding indictment was returned on December 2, 2014, and unsealed today upon the arrest of Lane. The second superseding indictment adds Lane as a defendant and adds additional robberies discovered during the ongoing investigation.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; Anne Arundel County Police Chief Tim Altomare; Chief J. Thomas Manger of the Montgomery County Police Department; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to the 18-count second superseding indictment, from January 29, 2013 through July 4, 2014, the defendants participated in a conspiracy to rob cell phone stores in Anne Arundel, Baltimore and Montgomery Counties, as well as Alexandria and Springfield, Virginia.The indictment alleges that the defendants planned and organized the theft of cash, credit cards, cell phones, portable electronic communications devices, and tablet computers from businesses, their employees and customers. The defendants planned to sell the stolen property. According to the indictment, the defendants conducted surveillance at the businesses prior to the robberies in order to determine whether it was an appropriate establishment to rob. In nine of the 10 robberies, the indictment alleges that the defendants used and brandished a gun to intimidate the employees during the robberies. The defendants and others allegedly used duct tape to restrain employees and used plastic trash bags to carry the stolen cellphones and electronic devices from the premises. The defendants used Chisholm’s car to travel to and from the robberies and to transport the stolen property and guns used during the robberies
The defendants each face a maximum sentence of 20 years in prison on the conspiracy and each of the robbery counts, and a minimum of seven years in prison, consecutive to any other sentence, and up to life in prison for possessing and brandishing a firearm in relation to a crime of violence. Lane has his initial appearance today in U.S. District Court in Baltimore and was detained pending a detention hearing scheduled for Friday, December 12, 2014 at 11:30 a.m. before U.S. Magistrate Judge Beth P. Gesner. Chisholm and Deans previously had their initial appearance and were detained pending trial.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, Anne Arundel County, Montgomery County, and Prince George’s County Police Departments, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney John F. Purcell, Jr., who is prosecuting the case.
Third Person Returns to U.S. to Plead Guilty in A False Income Tax Refund SchemeRead the Press Release
COLUMBUS, OHIO – Suheidy A. Warner, 31, of Columbus pleaded guilty to one count of conspiracy to file false claims for federal income tax refunds with the Internal Revenue Service (IRS). Warner faces a maximum of 10 years in prison and a fine of up to $250,000.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office; and Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service announced the guilty plea entered before U.S. District Judge Gregory L. Frost.
According to court documents, between February 2010 and June 2010 Warner abused her position of trust as a Chase Bank teller by cashing approximately 36 federal income tax refund checks she knew were fraudulently obtained. Warner was not given authorization by Chase Bank to cash these checks and was subsequently terminated.
The tax refund checks were given to Warner by a man who identified himself as Rafael Mota. Rafael Mota told her that the checks needed to be cashed for people that did not have identification, so they could cash the refund checks themselves.
The income tax refund checks were mailed to pre-arranged addresses, usually apartments in New York, New Jersey and other nearby states. The addresses contained on many of the income tax refund checks often shared the same street address, but different apartment numbers. This made it easier to collect the income tax refund checks from one location. The income tax refund checks were collected by corrupt postal workers, apartment superintendents, or other perpetrators who simply waited for the checks to be delivered by unknowing mail carriers. The perpetrators then used couriers to travel to surrounding states, including to Columbus, Ohio, to cash the checks at various check-cashing service businesses, including San Isidro Cargo. The owners of San Isidro Cargo were Mercedes Emelinda-Silie, Warner’s sister, and Jose Martinez, a family friend.
Warner used various Chase Bank customer accounts to cash the income tax refund checks. Warner deposited the funds into two prearranged accounts. One account was that of a co-conspirator located in New Jersey. The second was the account of Alberto Rivera Falcon. Nineteen income tax refund checks totaling $126,108.30 were deposited into Falcon’s account. Seventeen income tax refund checks totaling $62,107 were deposited into the account of the co-conspirator located in New Jersey. Warner received approximately $200 to $300 per check.
Warner admitted to hand-carrying these U.S. Treasury checks to work at Chase Bank, using Falcon’s account to deposit them, withdrawing large sums of cash, and leaving the bank with the cash in her possession and providing the currency to other co-conspirators.
The income tax refund checks, and the believed stolen State of New Jersey tax refund checks, were the sole sources of deposits into both accounts. Warner received the income tax refund checks with the endorsed signature directly from Rafael Mota and Alberto Falcon. None of the income tax refund checks bore Warner’s name, Falcon’s name, Mota’s name or the New Jersey co-conspirator’s name.
The total tax loss associated with Warner’s involvement in this conspiracy is approximately $188,215.30, which represents the total of the 36 purported income tax refund checks that she helped to negotiate.
On April 4, 2014 Jose Luis Martinez, 48, of Columbus, Ohio was sentenced by U.S. District Judge Gregory L. Frost to 60 months in prison, three years of supervised release, and ordered to pay $4,415,492.58 in restitution to the IRS for his role in a conspiracy to defraud the IRS by filing false claims for federal income tax refunds and for operating an unlicensed money transmitting business.
On April 24, 2014 Mercedes Emelinda-Silie, 41, of Grove City, Ohio was sentenced by U.S. District Judge Gregory L. Frost to 36 months in prison, three years of supervised release, and ordered to pay $4,415,492.58 in restitution to the Internal Revenue Service (IRS) for her role in a conspiracy to defraud the IRS by filing false claims for federal income tax refunds.
"These defendants perpetuated an elaborate scheme driven by insatiable greed and a blatant disregard for the tremendous damage inflicted on innocent victims,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Be assured that IRS Criminal Investigation, along with our law enforcement partners and the U.S. Attorney's Office, will hold those who engage in identity theft and refund fraud fully accountable."
Stewart commended the investigation by IRS-Criminal Investigation and the U.S. Postal Service, as well as Assistant United States Attorney Daniel Brown, who is representing the United States in this case.
Third Member of Laguna Pueblo Sentenced for Conviction Arising Out of Drive-By Shooting of Acoma Pueblo HomeRead the Press Release
ALBUQUERQUE – Joseph Edward Lucero, 25, of Laguna Pueblo, was sentenced this morning to 74 months in federal prison followed by two years of supervised release for his assault conviction arising out of the drive-by shooting of an Acoma Pueblo home.
Lucero is the third of four members of Laguna Pueblo to be sentenced in this case. Co-defendants Preston Chino, 22, and Cameron Joseph Kasero, 21, were each sentenced last week to 96 months in federal prison followed by three years of supervised release.
Lucero, Chino and Kasero, together with co-defendant Andrea Carrillo, 22, were indicted on assault and firearms offenses in July 2013. The indictment alleged that the quartet assaulted two men and a woman on Dec. 9, 2012, by discharging firearms at a residence located in Acoma Pueblo in Cibola County, N.M.Lucero entered a guilty plea to an assault charge on Sept. 9, 2014, and admitted repeatedly discharging a weapon at the victims’ residence.
Chino pled guilty on Aug. 27, 2014, to an assault charge, and admitted aiding Kasero and Lucero in assaulting the three victims by providing them with shotguns and ammunition. He also admitted driving his co-defendants to the victims’ Acoma Pueblo home where they discharged the shotguns multiple times in the direction of the residence.
Kasero pled guilty to an assault charge on Sept. 2, 2014. During his plea hearing, Kasero admitted assaulting the victims by discharging a shotgun at a residence while it was occupied by the victims.Carrillo entered a guilty plea to an assault charge on Sept. 2, 2014, and admitted aiding the assault on the victims by providing her co-defendants with directions to the residence with the understanding that her co-defendants intended to commit an assault at that location. Carrillo is scheduled for sentencing on Jan. 20, 2015, when she faces a statutory maximum penalty of ten years in prison.
This case was investigated by the Albuquerque office of the FBI, the Laguna/Acoma Agency of the BIA’s Office of Justice Services, the Acoma Pueblo Tribal Police and the Pueblo of Laguna Tribal Police Department. Assistant U.S. Attorney Kyle T. Nayback is prosecuting the case.
Suspended Las Vegas Doctor Pleads Guilty to Obtaining Controlled Substances by FraudRead the Press Release
LAS VEGAS, Nev. – A suspended Las Vegas doctor who was prescribing and obtaining controlled substances at local pharmacies in the name of a deceased patient, pleaded guilty today to the federal felony offense of obtaining controlled substances by fraud, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Kent Swaine, 50, of Las Vegas, entered his guilty plea before U.S. District Judge Richard F. Boulware, and is scheduled to be sentenced on April 18, 2015. Swaine faces a maximum penalty of four years in prison and a $250,000 fine.
“The Centers for Disease Control and Prevention has classified prescription drug abuse as an epidemic,” said U.S. Attorney Bogden. “We are acutely aware that this is a problem which cannot be addressed through law enforcement action alone, and have been working with community partners in three other major areas to prevent and reduce prescription drug abuse, education, monitoring, and medication disposal.”
According to the court records, Swaine was originally licensed to practice medicine in Nevada in July 2001, and operated a medical practice at 5380 S. Rainbow Boulevard in Las Vegas. In January 2014, the Las Vegas DEA initiated an investigation into Swaine following a complaint that Swaine was writing prescriptions and obtaining controlled substances at several Las Vegas pharmacies in the name of a deceased patient. The investigation determined that Dr. Swaine was impersonating a deceased individual in order to obtain controlled substances. Swaine was arrested and charged by federal criminal complaint in August. At the guilty plea today, Swaine admitted that he had been fraudulently writing and filling prescriptions for Hydromorphone (generic Dilaudid), in the name of a patient who died in August 2011, for the purpose of his own drug addiction.
According to the State Medical Board’s website, Swaine’s license to practice is currently suspended indefinitely.
Next Wednesday and Thursday, Dec. 17 to Dec. 18, the U.S. Attorney’s Office is co-sponsoring with the Nevada High Intensity Drug Trafficking Area Task Force (Nevada HIDTA) an annual training summit in Las Vegas to address prescription drug abuse. In addition to law enforcement, medical, treatment and pharmacy providers, as well as community and family service agency representatives are welcome to attend. For more information and to register go to: http://www.nvhidta.org/default.aspx?menuitemid=694.
The case was investigated by the HIDTA Pharm-Net Task Force, and prosecuted by Assistant U.S. Attorney Crane M. Pomerantz.
- Starr County Deputy and Brother Indicted for Drug Trafficking
St. Petersburg Man Sentenced to Nine Years for Child Pornography OffensesRead the Press Release
Tampa, FL – U.S. District Judge Mary S. Scriven today sentenced Richard Wayne Johnson (68, St. Petersburg) to nine years in federal prison for transporting and possessing child pornography, followed by a lifetime of supervised release. In addition, the Court ordered Johnson to pay $7,000 in restitution to the victims of the offenses, and imposed a fine of $17,500. Johnson was also ordered to forfeit a desktop computer that had been used to facilitate the offenses.
Johnson pleaded guilty on August 25, 2014.
According to court documents, in April 2014, an undercover agent used a file sharing program to download Internet files containing child pornography. Further investigation traced the host computer back to Johnson. On May 1, 2014, agents executed a federal search warrant at his residence. During that search, and in a later forensic examination, agents found more than 3,600 videos and 476 images depicting child pornography on Johnson’s computer. Some of the child pornography on Johnson’s computer involved toddlers.
This case was investigated by the Federal Bureau of Investigation, the St. Petersburg Police Department, and the Largo Police Department. It was prosecuted by Assistant United States Attorney Joseph W. Swanson.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Southeastern Connecticut Cocaine Trafficker Pleads GuiltyRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PEDRO RIVERA, also known as “Cheito,” 36, of Groton, pleaded guilty today in Hartford federal court to one count of conspiracy to possess with intent to distribute 500 grams or more cocaine.
According to court documents and statements made in court, in early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut. The investigation revealed that certain members of the conspiracy coordinated the shipment of heroin, and sometimes cocaine, via human couriers from the Dominican Republic to the United States. Other members of the conspiracy obtained kilogram-quantities of cocaine in Puerto Rico and then mailed the drug to locations in and around New London where it was sold to distributors and customers. Narcotics were also obtained from sources in New York City and Rhode Island.
More than 100 individuals were charged with federal and state offenses as a result of this investigation.
According to statements made in court, RIVERA arranged the shipment of cocaine from sources in Puerto Rico to the New London area. RIVERA’s cocaine trafficking operation was assisted by individuals who lived in and around Morovis, Puerto Rico, including his parents, Juan Rivera Ortiz and Ivette Pagan Rodriguez. RIVERA then distributed the cocaine to customers in southeastern Connecticut through a network of associates.
RIVERA is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on March 3, 2015, at which time he faces a minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. RIVERA has been in custody since his arrest on April 3, 2013.
Rivera Ortiz and Pagan Rodriguez pleaded guilty on November 24, 2014, and await sentencing.
This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal case is being prosecuted by Assistant U.S. Attorneys Sarah P. Karwan, Alina P. Reynolds and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Scottsdale Man Sentenced to 18 Months in Prisonfor Standby Letter of Credit SchemeRead the Press Release
PHOENIX – J’Sean Claude Butierries, 51, of Scottsdale, Ariz., was sentenced by U.S. District Judge Neil V. Wake to 18 months of imprisonment, followed by three years of supervised release, on wire fraud and money laundering charges. Butierries pleaded guilty in September to defrauding investors out of hundreds of thousands of dollars by selling fraudulent investments and then using that money to buy expensive cars and other luxury items for himself and family members.
“The very large, short-term gains that Butierries falsely claimed he could produce were unreasonable, and the public should be wary of such claims made by anyone,” said U.S. Attorney John S. Leonardo. “Butierries said he could deliver these gains by trading standby letters of credit, which do not exist, and the United States Attorney’s Office warns the public to stay away from financial predators who make these claims.”
Butierries owned and operated a company called Chenise International, Ltd., through which he offered the investors a 30%-plus return, to be paid within 15 days. Butierries, who was not licensed or registered to sell securities, claimed that he was able to engage in trading in standby letters of credit, an investment vehicle simply does not exist. This type of fraud, sometimes referred to as “prime bank investment fraud,” is marked by false claims of very large, short term gains, claims of “private” trading programs, the use of “standby letters of credit” or “proof of funds” documents, and other promises that use terms and concepts that mimic legitimate banking terms but are not themselves legitimate.
Butierries used the funds to purchase a $195,000 Audi R8 for himself, a $75,000 Audi A730 for his wife, a boat, and several motorcycles. All of the items were seized from Butierries’s home and Butierries agreed to forfeit those items as part of his plea, with funds going to reimburse investors. Butierries was ordered to pay the balance to investors in the form of restitution.
The investigation in this case was conducted by the Phoenix Division of the FBI. The prosecution was handled by Monica Klapper, Assistant U.S. Attorney, District of Arizona, Phoenix. For more information on this type of fraud, with tips on how to avoid falling prey to it, visit the FBI website at www.fbi.gov/scams-safety/fraud or the Department of Treasury website at www.treasury.gov/scams/Prime-Bank-Investment-Fraud.
CASE NUMBER: CR-14-00063-PHX-NVW
RELEASE NUMBER: 2014-072_ButierriesFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Sault Ste. Marie Man Convicted in Federal Court of Sexual Assault and Witness TamperingRead the Press Release
MARQUETTE, MICHIGAN – U.S. Attorney Patrick A. Miles, Jr., announced today that Lynn Michael LaVictor, 44, of Sault Ste. Marie, Michigan, was convicted on all six counts of a federal indictment charging attempted sexual abuse; two counts of aggravated sexual abuse; assault resulting in serious bodily injury; domestic assault by a habitual offender; and attempted witness tampering. LaVictor had previously pled guilty to the seventh count of the indictment that charged him with contempt of a court order.
The charges arose from an incident on June 27, 2014, in which LaVictor sexually assaulted his then girlfriend in Sault Ste. Marie, Michigan. The victim’s injuries from the assault required her to be transported by ambulance to the hospital, where she underwent surgery later in the day. After his arrest and the placement of a no-contact order, LaVictor repeatedly contacted the victim anyway and attempted to influence her testimony.
The trial was before U.S. District Judge R. Allen Edgar. At sentencing, which is scheduled for May 8, 2015 at 10:00 a.m., LaVictor will face a potential life sentence. The Sault Ste. Marie Tribe of Chippewa Indians Tribal Police and the Federal Bureau of Investigation investigated the case. Assistant U.S. Attorneys Jeff J. Davis and Hannah N. Bobee prosecuted the case.
END
Repeat Bank Robber Admits GuiltRead the Press Release
COEUR D’ALENE - Ricky Allen Fisher, 35, most recently of Orlando, Florida, pleaded guilty today in U.S. District Court to bank robbery, U.S. Attorney Wendy J. Olson announced. Fisher pleaded guilty before U.S. District Judge Edward J. Lodge in Coeur d’Alene.
In 2007, Fisher was sentenced to 77 months in prison for bank robbery. In his plea, Fisher admitted that after his release from federal prison on May 6, 2014, he took a bus to Boise, Idaho. He arrived on May 9, 2014, and was taken to Ontario, Oregon, where he robbed a Chase Bank of $1,600. Five days later he entered U.S. Bank in Ontario, Oregon, demanded cash and left with $1,334. On May 16, 2014, Fisher robbed the U.S. Bank in Cottonwood, Idaho, and took $2,324. Fisher was driven to each bank by Jennifer Balfe, 19, who previously pleaded guilty and was sentenced on November 20, 2014,to 27 months in prison and three years of supervised release.
Fisher will be sentenced on March 3, 2015, in Coeur d’Alene, Idaho. Bank Robbery is punishable by up to 20 years in prison, three years supervised release and up to a $250,000 fine. Fisher has also been ordered to pay restitution to each of the banks.
The case was investigated by the Cottonwood Police Department, Lewiston Police Department, Idaho County Sheriff’s Office, Nez Perce County Sheriff’s Office, and the Federal Bureau of Investigation (FBI).
Operators of Atlanta Stores Arraigned for WIC and Snap FraudRead the Press Release
ATLANTA - Rodney Byrd and Reginald Byrd have been arraigned on federal charges of unlawfully purchasing vouchers of the Georgia Women, Infants and Children (WIC) program and debit cards of the Supplemental Nutrition Assistance Program (SNAP).
“These defendants are charged with stealing money that was intended to be used to provide nutritious food to low-income mothers and children,” said United States Attorney Sally Quillian Yates. “Our office will continue to pursue those individuals who seek to abuse government assistance programs for their own greed.”
“These defendants sought to benefit financially from their fraudulent activities” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “Their actions also resulted in a loss to the government, but more importantly, they are charged with stealing from individuals who depend on the WIC program for assistance.”
According to United States Attorney Yates, the charges, and other information presented in court: Rodney Byrd owned and operated several Atlanta, Ga., metropolitan-area stores named “Tweet Baby Tweet,” “Chicos and Chicas Variety Store,” and “Tweets, Treats, and Nic Nacs.” Reginald Byrd managed at least one of these stores. The defendants directed employees of the stores to make cash payments to customers in return for the customers’ WIC vouchers and for the use of the customers’ SNAP debit cards, which is a violation of the terms of the WIC program and SNAP. The defendants caused employees to cash checks made out to the employees’ names and used the proceeds to purchase customers’ WIC vouchers and EBT cards.
Rodney Byrd, 39, of Lawrenceville, Ga., and Reginald Byrd, 38, of College Park, Ga., were arraigned before United States Magistrate Judge Janet F. King. Both defendants were indicted by a federal grand jury on November 24, 2014.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Department of Agriculture, Office of the Inspector General, and Internal Revenue Service Criminal Investigation.
Assistant United States Attorney Thomas J. Krepp is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Omaha Woman Convicted of Bank RobberyRead the Press Release
United States Attorney Deborah R. Gilg announced that Shantoria Valentine-Deguenon, age 23 of Omaha, Nebraska, was convicted today after a jury found her guilty of bank robbery. The Honorable Joseph F. Bataillon presided over the trial that was held this week in Federal District Court. Sentencing has been set for March 6, 2014. Ms. Valentine-Deguenon faces 20 years of imprisonment when she is sentenced.
On July 28, 2014, Valentine-Deguenon walked into the Wells Fargo branch located at 4725 South 84th Street, Ralston, Nebraska and gave a note to two tellers indicating she had a bomb. She also yelled that she had a bomb and demanded money from the tellers. The tellers gave her money and she fled the bank. A Good Samaritan, who happened to be parked in the bank parking lot, saw Valentine-Deguenon run from the bank, followed her, and tracked her to the Ralston Middle School parking lot where he ordered her to the ground. As that was happening, Ralston police officers arrived on the scene and placed her under arrest. She was found in possession of $1213.00 in U.S. currency taken from the bank.
The case was investigated by the Ralston Police Department and Federal Bureau of Investigation.Norfolk Woman Sentenced to 210 Months in Prison for Her Role in Conspiracy to Produce Child PornographyRead the Press Release
NORFOLK, Va. – Shavonna Lakita Whitfield, 28, of Norfolk, Virginia, was sentenced today to 210 months in prison, followed by lifetime supervised release, for production of child pornography.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, and Clark Settles, Special Agent in Charge of the Department of Homeland Security, Homeland Security Investigations made the announcement after sentencing by Senior United States District Judge Robert G. Doumar.
Whitfield pleaded guilty on August 26, 2014. According to court documents, Whitfield became involved in the conspiracy when she was contacted by co-conspirator Robert Harold Scott, Jr. under his assumed online identity of “Mike Pyro.” Scott would routinely communicate with women in and around the Tidewater area to set up “sex parties,” where the women would work as prostitutes and Scott would pay them for their services. In reality, Scott would not pay them and, at times, extort the women by threatening to publish sexually explicit videos. In addition to the adult parties, Scott was found to be conspiring with and producing child pornography with five different women, including Whitfield. Law enforcement found that, when discussing the sex parties, sometimes Scott would request these women to produce child pornography and was very specific as to the sex acts he wanted done on camera. Whitfield complied in return for the promise of money. Specifically, Whitfield produced child pornography with a 3 year old child.
This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-164.Tweet
Navajo Woman from Farmington Sentenced for Assault ConvictionRead the Press Release
ALBUQUERQUE – Thelda Frank, 42, an enrolled member of the Navajo Nation who resides in Farmington, N.M., was sentenced today to a year of supervised release for her assault conviction.
Frank was arrested in Jan. 2013, based on an indictment charging her with assault with a dangerous weapon and assault resulting in serious bodily injury. According to the indictment, Frank assaulted a man with a knife on July 27, 2011, in a location within the Navajo Indian Reservation.
On Sept. 25, 2013, Frank pleaded guilty to a felony information charging her with assault, and Frank admitted stabbing a man in the abdomen with a knife on July 27, 2011.This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
Montgomery County Pair Charged in EBay ScamRead the Press Release
PHILADELPHIA - Kareem Cameron, a/k/a “Shareef Ali,” 49, and Alecia Susan Brown, 38, both of Wyncote, PA, were charged by indictment, unsealed today, in an internet scam involving an online auction site. The defendants, who were arrested today, are each charged with conspiracy to commit mail and wire fraud, one count of mail fraud, and four counts of wire fraud, announced United States Attorney Zane David Memeger.
The indictment alleges that Cameron and Brown conspired to operate an internet scam in which Cameron, through various eBay user names and aliases, offered luxury items, including BMWs and Rolex watches, for sale on the internet auction site. It is further alleged that Cameron did not possess or did not intend to deliver the goods he offered for sale, or the goods were not in the condition he advertised. According to the indictment, Cameron instructed victim buyers to send a payment, via wire transfer, to his bank account or to the account of co-defendant Alecia Brown. After Cameron received payment, he either shipped goods that did not match the description or were inferior in quality to those he advertised for sale, or he shipped nothing at all. The indictment charges that the pair defrauded their victims of approximately $186,439.
If convicted of all charges, the defendants each face a maximum possible sentence of 125 years in prison, a fine of up to $1.75 million, three years of supervised release, and a $700 special assessment.
The case was investigated by the U.S. Postal Inspection Service and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Karen M. Klotz.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Member of Multi-State Theft Scheme Sentenced to 28 Months in Prison for Selling Stolen PharmaceuticalsRead the Press Release
NEWARK, N.J. – A Miami, Florida, man was sentenced today to 28 months in prison for his role in a multi-state conspiracy to possess and sell prescription medication taken from a stolen tractor trailer, U.S. Attorney Paul J. Fishman announced.
Martin Lopez, a/k/a “El Negro,” 47, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with conspiracy to possess stolen prescription medicine. Judge Martini imposed the sentenced today in Newark federal court.
According to documents filed in this case and statements made in court:
On Dec. 2, 2009, a full shipment of prescription respiratory medicine manufactured by Dey LLP in Allen, Texas, was stolen on its way to Sandoz Inc. in Mechanicsburg, Pennsylvania. Lopez admitted that from December 2009 through March 2010, he conspired with others to acquire and sell medicine stolen from the shipment.
In early 2010, Lopez spoke with Ernesto Romero-Vidal, a/k/a “Bemba,” 48, of Hallandale, Florida, to identify a potential buyer for the stolen medicine. On March 2, 2010, Lopez arranged to have the medicine delivered to a buyer in New Jersey. Two days later, two other conspirators delivered the stolen goods to the buyer in return for $64,000 in cash, which they split with Lopez.
In addition to the prison term, Judge Martini sentenced Lopez to three years of supervised release and ordered forfeiture of $7,000.
On Dec. 18, 2013, Romero-Vidal was sentenced by Judge Martini to 80 months in prison for his role in the scheme and other federal charges.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and detectives of the North Bergen Police Department, under the direction of Chief Robert J. Dowd, with the investigation leading to today’s sentencing.The government is represented by Senior Litigation Counsel Leslie Faye Schwartz and Assistant U.S. Attorney Jane H. Yoon of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Kathleen M. Theurer Esq., Jersey City, N.J.Mclean County Man to Serve Four Years in Prisonfor Operating Unlicensed Internet Bitcoin ExchangeRead the Press Release
Peoria, Ill. – The first defendant prosecuted in the Central District of Illinois for running an unlicensed internet money service business has been sentenced to four years in federal prison, as announced by U.S. Attorney Jim Lewis. Last week, on Dec. 4, Chief U.S. District Judge James E. Shadid sentenced John D. Powell 55, of Normal, Ill., to 48 months in prison for operating an unlicensed Bitcoin exchange on the internet. Powell was also ordered to serve three years of supervised release following his incarceration.
On July 31, 2014, Powell entered an open plea of guilty to two counts of operating an unlicensed money service business. Bitcoin is a cyber-currency that allows individuals to conduct transactions anonymously. According to court documents and statements during court hearings, Powell’s exchange business allowed individuals increased anonymity by exchanging cash anonymously for bitcoin. Investigators found that Powell received more than $3,000,000 from individuals during an 18-month period ending in February 2014, even though he had not registered, as required by law, as a money service business with either the State of Illinois or the United States.Following the sentencing hearing, Powell was remanded to the custody of the U.S. Marshals Service. On Sept. 30, 2014, Powell was arrested, and had been ordered detained pending sentencing after the government filed a petition to revoke Powell’s pretrial release supervision. Powell had been placed under pretrial release supervision with conditions, including that the defendant not use or unlawfully possess illegal drugs. In support of revocation of Powell’s pretrial release, the petition cited four occasions from July 29 to Sept. 11, 2014, when the defendant submitted to testing for a prohibited substance and tested positive for cannabis.
The case was prosecuted by Assistant U.S. Attorney Bradley W. Murphy. The investigation was conducted by the Internal Revenue Service Criminal Investigation and the U.S. Postal Inspection Service.
# # # #- McAllen Man Sentenced to 10 Years in Prison for Trafficking in Marijuana
Marion County Sheriff’s Department to Receive over $750,000 Forfeited in East Tennessee Drug Trafficking CaseRead the Press Release
Cash and vehicles forfeited totaled $961,413.93
CHATTANOOGA, Tenn. –The Marion County Sheriff’s Department will receive a check in the amount of $751,515.71, which represents the majority of funds forfeited in a marijuana trafficking case prosecuted in U.S. District Court in Chattanooga.Jackie Morrison, 66, Ollie Frizzell, 53, Sammy Nance, 51, all of Whitwell, Tenn., along with Julio Barbosa, Sr., 60, of Laredo, Texas, were charged and convicted of offenses related to the scheme, which operated from 2004 to 2011. The operation was responsible for transporting over 1000 pounds of marijuana from Texas to East Tennessee, where it was distributed.
Morrison was arrested as he was returning from Laredo, Texas to Jasper, Tenn., in November 2011 with 66 pounds of marijuana in his pickup truck. Searches of the truck and residences for Morrison and his coconspirators resulted in the seizure of approximately 86 pounds of marijuana, guns, explosives, drug ledgers, cash, vehicles, and bank accounts.
After a jury trial, Morrison was found guilty of a conspiracy to distribute 100 kilograms or more of marijuana, possession of marijuana with the intent to distribute, and 28 counts of structuring money to evade currency reporting requirements. He was sentenced to serve 72 months in prison, followed by four years of supervised release. The jury also found that $779,033.23, was forfeitable as money involved in the structuring offenses, and $820.00 and a 2003 Ford F-250 pickup truck were forfeitable as property involved in drug trafficking offenses.
Nance pleaded guilty to three counts of distribution of marijuana. He was sentenced to serve 24 months in prison, followed by four years of supervised release. Nance was acquitted by the jury of the conspiracy to distribute 100 kilograms or more of marijuana. However, the jury forfeited an ATV used by Nance to distribute the marijuana for which he pleaded guilty.
Frizzell pleaded guilty to conspiracy to distribute 100 kilograms or more of marijuana. She was sentenced to serve 30 months in prison, followed by four years of supervised release. She also forfeited a 2005 Toyota Tacoma and $159,700.70.
Barbosa pleaded guilty to conspiracy to distribute 100 kilograms or more of marijuana and money laundering. He was sentenced to serve 48 months in prison, followed by eight years of supervised release.
Of the total $961,413.93 ordered by the court to be forfeited, $939,553.93 was cash and $21,860.00, was the value of vehicles and an ATV.
U.S. Attorney William C. Killian said, “To ensure that crime doesn’t pay, federal law allows the forfeiture of property used to facilitate crimes and assets obtained through their illegal activity. The U.S. Attorney’s Office for the Eastern District of Tennessee works with our federal and local law enforcement agency partners to identify, seize, and forfeit property in an effective and powerful strategy in the fight against crime as part of the Department of Justice’s asset forfeiture program.”
Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Glenn “Andy” Anderson stated, “In keeping with ATF Chattanooga’s Frontline strategy to address and reduce violent crime and protect the public, our partnership with the Marion County Sheriff’s Office has once again proven to be invaluable in concentrating on criminal groups. This investigation has had many phases and still continues. At this juncture, it is with great pleasure to share these proceeds of ill-gotten gains with Sheriff Burnett and his office.”
Marion County Sheriff Ronnie “Bo” Burnett stated, “The Marion County Sheriff’s Office committed personnel to work with ATF Chattanooga seven years ago. During that time the working relationship with the ATF and the U.S. Attorney’s Office has been invaluable. The streets and neighborhoods of Marion County are much safer today because of this strong partnership. This case is one of many successful cases that has been prosecuted as a result of this partnership. The Sheriff’s Office is grateful that this partnership has paid off not only to get criminals off of the streets but to also ensure that the Sheriff’s Office has the needed funding to hire more personnel, conduct training, and obtain updated investigative equipment.”
In addition to the Marion County Sheriff’s Department, the ATF had a significant role in the investigation which led to the subsequent conviction and sentencing of these individuals. Assistant U.S. Attorneys Jay Woods and Gregg Sullivan represented the United States. Assistant U.S. Attorney Anne-Marie Svolto assisted with the forfeiture.
The Department of Justice Asset Forfeiture Program is a nationwide law enforcement initiative that removes the tools of crime from criminal organizations, deprives wrongdoers of the proceeds of their crimes, recovers property that may be used to compensate victims, and deters crime. The most important objective of the program is strengthening law enforcement efforts to combat crime. Equitable sharing further enhances this law enforcement objective by fostering cooperation among federal, state, and local law enforcement agencies. Any state or local law enforcement agency that directly participates in an investigation or prosecution that results in a federal forfeiture may request an equitable share of the net proceeds of the forfeiture.
(Check Presentation Picture )
Maple Plain Man Sentenced to 150 Months in Prison for Stealing Millions from Mortgage Loan LendersRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of ALPHA RASHIDI MSHIHIRI, 39, to 150 months in federal prison for orchestrating a multi-million dollar mortgage fraud conspiracy. MSHIHIRI was convicted, on February 20, 2014, following a seven-day trial, of each count of the indictment against him, including Conspiracy to Commit Bank Fraud, Bank Fraud, Mail Fraud, and Wire Fraud. He was sentenced on December 8, 2014, before Senior Judge David S. Doty in U.S. District Court in Minneapolis.
As proven at trial, between 2007 and 2009, MSHIHIRI, who was once a licensed mortgage broker, and his co-conspirators defrauded a number of lenders for millions of dollars by recruiting straw buyers, falsifying loan applications and other documents, and inflating real estate purchase prices. As part of the conspiracy, straw buyers submitted fraudulent loan applications to mortgage lenders. In some instances, they used stolen identities to fill out loan applications.
In support of fraudulent loan applications, MSHIHIRI and his co-conspirators also created false documents, such as W-2s, paystubs, driver’s licenses, and bank statements, which straw buyers submitted to mortgage lenders to obtain financing. In some instances, the proceeds of the loans were used to pay existing mortgages, financially benefitting MSHIHIRI and others. The scheme also included MSHIHIRI’s involvement in kickbacks to GWP and Pristine Home Loans, companies he owned and operated. Every property purchased through the scheme went into foreclosure, resulting in nearly $2 million in losses to the victim lenders.
This case resulted from an investigation conducted by the Internal Revenue Service-Criminal Investigation, the Minnesota Financial Crimes Task Force, the United States Secret Service, and the U.S. Department of Housing and Urban Development – Office of Inspector General.
The case was prosecuted by Assistant U.S. Attorneys Lola Velazquez-Aguilu and David Genrich.
The U.S. Attorney’s Office reminds people to protect themselves from mortgage fraud. For more information, visit http://www.stopfraud.gov/protect-mortgage.html.
Defendant Information: ALPHA RASHIDI MSHIHIRI, 39
Maple Plain, Minn.
Convicted: • Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 3 counts
• Wire Fraud, 2 counts
• Mail Fraud, 1 count
Sentenced: • 150 months in prison
• Five years supervised releaseLowell Man Sentenced to 30 Years for Producing Child Pornography at a DaycareRead the Press Release
GRAND RAPIDS, MICHIGAN – Travis C. Stiehl, 23, received a sentence today of 30 years in federal prison for producing child pornography at his mother’s daycare facility in Lowell, Michigan. Stiehl pled guilty in August 2014 to one count of producing child pornography of a 4-year-old boy. As part of the plea, the prosecution dismissed seven other counts of producing child pornography of children ages 2 to 14 between 2011 and 2013, and one count of possessing over 2,000 images and video of child pornography that Stiehl received through the internet. As part of the sentence, the judge included a condition of lifetime supervised release and an order that Stiehl undergo a psychological and physiological examination for sexual dangerousness before he can be released from the Bureau of Prisons.
In delivering the maximum possible sentence to Stiehl, Chief United States District Judge Paul L. Maloney said, “I view him as a major threat. A more horrific crime short of death is hard to imagine. Children were dropped off at a daycare facility and were victimized by one of the occupants of the home.” He added, “The victimization and the wreckage here is monumental to multiple families.” Judge Maloney explained that “lives have been shattered by the defendant’s actions,” and no mitigating factors exist to warrant a sentence below the maximum authorized.
“This U.S. Attorney’s Office is working hard to protect the vulnerable and prevent child exploitation,” said U.S. Attorney Patrick Miles. “We are vigorously prosecuting those who create and support the market for child pornography, and they are facing significant prison sentences.”
“This case is particularly disturbing because the defendant had direct access to children,” said Marlon Miller, special agent in charge of HSI Detroit. “But it also illustrates the severe penalties that await those who abuse their positions of trust to engage in this type of depraved activity.”
Stiehl was arrested April 25, 2014, and has been in custody since that time. The families of all the children photographed or videotaped by Stiehl were identified and notified directly by investigators. Families with questions about whether their children were victims are invited to contact Homeland Security Investigations at 616-235-3936, extension 2215.
The charges are the result of an investigation conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Michigan State Police Internet Crimes Against Children. Assistant U.S. Attorney Tessa K. Hessmiller prosecuted the case.
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Long Island Man Pleads Guilty in Connection with $5 Million Ponzi SchemeRead the Press Release
Long Island resident Robert Rocco, 49, pleaded guilty today before U.S. District Judge Leonard D. Wexler at the federal courthouse in Central Islip, NY, to wire fraud in connection with a series of fraudulent investment schemes that he created. Rocco faces a maximum penalty of 20 years in prison, a fine of over $250,000, and restitution of up to $3,498,940.13. Sentencing will be scheduled when the Presentence Investigation Report is completed.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“For nearly seven years, rather than make sound investment decisions as he had promised, Robert Rocco fleeced friends, neighbors, and colleagues and used their money to fund his own lavish lifestyle. His lies caught up to him and his scheme was revealed. Today, through his plea of guilty, Rocco has finally admitted to his criminal conduct,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the Federal Bureau of Investigation for its work on the investigation.
Rocco, while acting as the president of the Dix Hills Soccer Club, solicited club members and volunteers, friends, and neighbors to invest money in a series of businesses that he formed including, Limestone Capital Services (“Limestone”), Advent Merchant Services, LLC and Advent Equity Partners, LLC, that Rocco claimed would earn high rates of return on investments. Rocco told investors that they would receive returns of up to 18% of their principal investment annually through the companies’ investments in ventures that purportedly included providing loans to finance wholesale cigarette purchases and a credit card processing venture. Rocco solicited and received approximately $5 million in investor money between 2006 and 2013, which was not invested as promised. Instead, he misappropriated the money and solicited money from new investors which he used to pay purported profits to earlier investors, thus concealing the earlier misappropriation. Rocco also sent account statements to investors that falsely showed that investors’ accounts had earned high rates of return. Between January and March 2010, Rocco deposited $66,915 in checks from the soccer club into Limestone and later distributed the proceeds of the checks to early investors in Limestone, leaving the soccer club with no funds to operate. In April 2010, Rocco sought and received donations to allow the club to continue operations.
The government’s case is being prosecuted by Assistant United States Attorney Allen Bode.
The Defendant:
ROBERT ROCCO
Age: 49
Dix Hills, New York
E.D.N.Y. Docket No. 13-CR-664 (LDW)
Loan Modification Fraud Ringleader Sentenced to 132 Months in PrisonRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, and Ronald J. Verrochio, Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, announce that Jason Vitulano, 39, of Boca Raton, Florida, was sentenced by U.S. District Judge Kenneth Marra to 132 months in prison, to be followed by three years of supervised release. Vitulano was also ordered to pay $5.9 million in restitution. Vitulano previously pled guilty to charges of conspiracy to commit mail fraud and wire fraud, and mail fraud, in violation of Title 18, United States Code, Sections 1349 and 1341.
According to the indictment and other documents filed in the case, between September 2008 and August 2009, the defendants operated boiler rooms that collected advance fees from distressed homeowners purportedly in exchange for obtaining loan modifications for the homeowners which were, with few exceptions, never provided. All ten defendants charged in this case have pled guilty to the charges, which involved a scheme to bilk thousands of homeowners who were struggling to make their mortgage payments. Defendant Jeffrey Taylor is set for sentencing on January 23, 2015 at 10:30 am. The remaining co-defendants received sentences ranging from 21 months to 72 months in prison.
The indictment alleges that Jason Vitulano was the organizer and operator of FHA All Day.com, Inc. and two other companies, Housing Assistance Law Center, Inc. and Safety Financial Corp., which operated the boiler rooms in Boca Raton and later in Deerfield Beach. According to the indictment and the factual proffers submitted in support of the guilty pleas, Robert Bacon was an operations manager who wrote and edited sales scripts, while the other eight defendants served as team managers of four to eight telemarketers who made thousands of phone calls to homeowners behind on their mortgage payments.
As alleged in the indictment, the defendants made false statements to the homeowners including telling homeowners they had already been approved or pre-approved for a loan modification that would save the homeowner a specific amount off their mortgage payment, reducing the interest rate and often the principal balance on the mortgage loan. The defendants, according to the indictment, routinely told customers that they had been approved by an “underwriter” and that they had a team of “expert attorneys” who would finalize the loan modifications.
The indictment further alleges that the defendants targeted homeowners across the country who were facing foreclosure, falsely telling them that the company would stop the foreclosure process and that homeowners could stop making mortgage payments while they waited for the company to finalize their loan modifications. FHA All Day, as alleged in the indictment, moved its offices and changed the corporate name several times to avoid law enforcement scrutiny and to hamper consumer complaints. Through the use of these and other false representations, the defendants, according to the indictment, induced over 2,000 distressed homeowners to pay up front fees totaling more than seven million dollars to the defendants.
Jason Vitulano was previously charged and pled guilty in federal court in two separate mortgage fraud cases, one in Palm Beach County in which he was sentenced to 63 months in prison (Case No. 09-80156-CR-DMM), and one in Pensacola, Florida in which he was sentenced to 77 months in prison (Case No. 13-CR-61-MCR), to be served consecutively to the Palm Beach case. In sentencing Vitulano on Friday, Judge Marra specifically ordered that the 132-month sentence on the 2013 case run concurrent with the 77-month sentence Vitulano is currently serving.
Mr. Ferrer commended the investigative efforts of USSS and USPIS. This case is being prosecuted by Assistant U.S. Attorney Lauren Jorgensen.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Kailua-Kona Man Sentenced to 155 Months Imprisonment for Distributing Methamphetamine on the Big IslandRead the Press Release
HONOLULU – Senior United States District Judge Alan C. Kay yesterday sentenced Kali Lotoaiki Laulea, 33, of Kailua-Kona, Hawai’i County, to 155 months imprisonment for three counts of methamphetamine distribution. A federal jury found Laulea guilty of the three charges in August of this year after a five-day trial.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that the evidence presented at trial showed that Laulea knowingly distributed a total of 484 grams of pure crystal methamphetamine over the course of three drug transactions that Laulea conducted in Kailua-Kona during August 2013.
The investigation that resulted in the charges against Laulea was conducted by the Federal Bureau of Investigation, with the assistance of the Hawaii County Police Department and the Drug Enforcement Administration. Assistant United States Attorneys Andrea Hattan and Mark Inciong handled the prosecution.
Jury Convicts KC Man of Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was convicted in federal court today of being a felon in possession of a firearm.
Eric M. Wiley, 30, of Kansas City, was found guilty of the charge contained in a May 22, 2014, federal indictment.
On May 11, 2014, Kansas City, Mo., police officers were dispatched to the BP gas station/convenience store at East 39th Street and Hardesty in response to a report of man brandishing a firearm during an argument about his pit bull dog running loose. When Wiley saw the officers approach the convenience store, he let go of the leash attached to his dog and fled on foot. A foot chase ensued. The pursuing officers saw Wiley grab the right side of his waist. Wiley’s jersey was untucked and hung over the waist band of his pants. As Wiley held his right side, the pursuing officers saw that he was holding a bulky item under the shirt.
Wiley fell to the ground. As he was falling, one of the officers saw something fall from his clothing. After Wiley was apprehended and arrested a short distance away from the spot where he fell, officers searched the area and found a loaded Jennings Firearms .380-caliber semi-automatic handgun with the serial number filed off.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Wiley has a prior felony conviction for burglary.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about 90 minutes before returning the verdict to U.S. District Judge Beth Phillips, ending a trial that began Monday, Dec. 8, 2014.
Under federal statutes, Wiley is subject to a sentence of up to 10 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney William L. Meiners and Special Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.Investigation into Drug Activity at Northwest Dallas Club Results in Federal Indictments and Arrests of 12 Defendants on Conspiracy and Drug Distribution ChargesRead the Press Release
DALLAS — An investigation that began early this summer by the Dallas Police Department into drug activity at a club in northwest Dallas has resulted in seven federal indictments, which were returned by a federal grand jury last week and unsealed today, charging 15 individuals with conspiracy and drug distribution offenses, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Twelve of the 15 defendants charged federally were arrested at various locations in North Texas, including at and near the club, which is known as Eternal Eden Afterhours, located at the Jaguars Club on Reeder Road. Firearms and drugs were seized during the arrests.
Defendants indicted are listed below; those marked with an “*” are in custody:
*Jose Antonio Canelo, a/k/a “Tony,” 31
*Joshua Lawrence Saddler, a/k/a “Cowboy,” 25
Canelo and Saddler are each charged with one count of conspiracy to distribute a controlled substance. If convicted, the offense carries a maximum statutory penalty of 20 years in federal prison and a $1 million fine. This indictment alleges that beginning on approximately August 1, 2014, Canelo and Saddler conspired together and with others to possess with the intent to distribute and to distribute a mixture or substances containing cocaine, a Schedule II controlled substance.
*Hunter Lee Foster, 23
Rosa Aidee Gomez Salinas, a/k/a “Jade,” 21
Foster and Salinas are each charged with one count of conspiracy to distribute a controlled substance. If convicted, the offense carries a maximum statutory penalty of 20 years in federal prison and a $1 million fine. This indictment alleges that beginning on approximately August 1, 2014, Foster and Salinas conspired together and with others to possess with the intent to distribute and to distribute a mixture or substance containing a detectable amount of 3,4-methylenedioxy-N-ethylcathinone (ethylone), a positional isomer of butylone, a Schedule I controlled substance.
*Doniel Dominique Hall, 25
*Charles Michael Scott, a/k/a “T Scott,” and “Carlos,” 24
*Debahni Nora Gorandinary, 19
Shelby Jean Hunter Owen, 19
Hall, Scott, Gorandinary and Owen are each charged with two counts of conspiracy to distribute a controlled substance. In addition, Hall is charged with one count of possession with intent to distribute a controlled substance and one count of possessing a firearm in furtherance of a drug trafficking crime. If convicted, conspiracy count one carries a maximum statutory penalty of 20 years in federal prison and a $1 million. Conspiracy count two carries a maximum statutory penalty of 10 years in federal prison and a $500,000 fine. The possession with intent to distribute count carries a maximum statutory penalty of 20 years in federal prison and a $1 million fine. The firearm count carries a maximum statutory penalty of seven years in federal prison and a $250,000 fine. This indictment alleges that beginning on approximately August 1, 2014, the four defendants conspired together and with others to possess with intent to distribute and to distribute a mixture or substance containing a detectable amount of ethylone, a positional isomer of butylone, a Schedule I controlled substance and a mixture or substance containing a detectable amount of Alprazolam, a Schedule IV controlled substance. It further alleges that on November 4, 2014, Hall possessed, with intent to distribute, methamphetamine and possessed a firearm in relation to and in furtherance of the drug trafficking crime.
*Jorge Luis Rios, Jr., 31
*Jose Manuel Hernandez, 23
Rios and Hernandez are each charged with one count of conspiracy to distribute a controlled substance. If convicted, each faces a maximum statutory penalty of 20 years in federal prison and a $1 million fine. The indictment alleges that beginning on approximately August 1, 2014, Rios and Hernandez conspired together and with each other to possess with intent to distribute and to distribute a mixture of substance containing a detectable amount of cocaine, a Schedule II controlled substance.
*Rachel L. Lucero, 27
Lucero is charged with one count of conspiracy to distribute a controlled substance and one count of possession with intent to distribute a controlled substance. If convicted, the conspiracy count carries a maximum statutory penalty of 20 years in federal prison and a $1 million and the possession count carries a maximum statutory penalty of 20 years in federal prison and a $1 million fine. The indictment alleges that beginning on approximately August 1, 2014, Lucero conspired with others to possess with the intent to distribute methamphetamine, a Schedule II controlled substance. It further alleges that on October 17, 2014, Lucero possessed methamphetamine with the intent to distribute.
India Small, 28
*Karina Shcherb, 22
Small and Shcherb are each charged with one count of conspiracy to distribute heroin. In addition, Small is charged with two, and Shcherb with one, counts of possession with intent to distribute heroin. If convicted on the conspiracy count, each faces a maximum statutory penalty of 20 years in federal prison and a $1 million fine. Each drug possession count carries a maximum statutory penalty of 20 years in federal prison and a $1 million fine. The indictment alleges that beginning on approximately August 1, 2014, Small and Shcherb conspired together and with others to distribute heroin. It further alleges that on August 22, 2014 and August 29, 2014, Small possessed heroin with the intent to distribute it. It also alleges that on August 22, 2014, Shcherb possessed heroin with the intent to distribute it.
*Christopher Chance Valdez, 20
*Bridget Elyse Tolle, 19
Valdez and Tolle are each charged with one count of conspiracy to distribute a controlled substance. If convicted, each defendant faces a maximum statutory penalty of 20 years in federal prison and a $1 million fine. The indictment alleges that beginning on approximately August 1, 2014, Valdez and Tolle conspired together and with others to possess with the intent to distribute and to distribute a mixture or substance containing a detectable amount of 25C-NBOMe and 25I- NBOMe, a Schedule I controlled substance, which is commonly known as N-bomb, Smiles, 25I, and 25C.
A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty.
The Dallas Police Department Narcotics and Homicide Unit investigated.
Assistant U.S. Attorney Phelesa Guy is prosecuting.
International Narcotics Trafficker Extradited from Honduras to United States SentencedRead the Press Release
The first Honduran national extradited to the United States for drug trafficking was sentenced today to serve 20 years in prison, to be followed by five years of supervised release, for his involvement in a conspiracy to distribute cocaine in the United States.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and A.D. Wright, Acting Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, made the announcement.
U.S. District Court Judge Darrin P. Gayles’ sentencing of Carlos Arnoldo Lobo, a/k/a “Negro,” 39, of, San Pedro Sula, Honduras, was the culmination of a five-year multi-agency investigation into the drug smuggling activities operating near La Ceiba, Honduras. To date, the investigation has resulted in the indictment and conviction of 18 drug traffickers who worked for Lobo. Lobo’s network coordinated the smuggling of cocaine by vessels from Colombia and Ecuador, to Panama and Honduras, then into Guatemala and other countries, including Mexico and the United States. As the owner and operator of several dozen vessels, he controlled drug shipments into and out of the eastern coast of Honduras.
Lobo pled guilty on September 5, 2014, to conspiring to distribute cocaine knowing that the cocaine would be imported into the United States. The conspiracy involved more than 450 kilograms of cocaine during the three years charged in the indictment.
“U.S. Attorney Ferrer stated, “As a result of the extraordinary efforts of U.S. law enforcement working together with our Honduran law enforcement partners, one of the most significant drug traffickers in Central America has been brought to justice. This case serves as an example that there are no borders when it comes to prosecuting international narcotrafficking; we will continue to work with our international law enforcement partners to bring drug traffickers who distribute illegal substances in the United States to justice.”
“Lobo’s arrest and sentence has led to the dismantling of a large scale drug trafficking organization responsible for smuggling hundreds tons of cocaine into our country”, said HIS Special Agent in Charge Erichs. “The arrest and sentence should send a strong message to those responsible for the importation of illegal drugs into the United States that we will not rest until they are brought to justice.”
DEA Acting Special Agent in Charge Wright stated, “The sentencing of Carlos Lobo, one of the biggest cocaine transporters in the international drug trade, is a reminder that justice will be served. The DEA will continue to pursue the highest level of drug traffickers and work with our international and domestic partners to dismantle these criminal enterprises that threaten to bring these dangerous drugs into our borders.”
Carlos Arnoldo Lobo’s sentence is the result of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation led by HSI in conjunction with the DEA Miami Field Division. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Mr. Ferrer commended the investigative efforts of ICE-HSI and DEA; and thanked the Office of International Affairs of the Department of Justice, ICE-HSI Attaché’s Office in Tegucigalpa, Honduras, and the DEA Attaché’s Office in Tegucigalpa, Honduras, for their significant assistance and support during the arrest and extradition of the defendant.
Mr. Ferrer also commended the efforts of President of the Honduran Republic Juan Orlando Hernàndez Alvarado and other Honduran officials for their cooperation and support during the extradition and prosecution of Carlos Arnoldo Lobo. This case was prosecuted by Assistant U.S. Attorney Kurt K. Lunkenheimer.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Individual Pleads Guilty for Carjacking That Resulted in MurderRead the Press Release
SAN JUAN, Puerto Rico – Edwin Torres-Osorio, aka “Bebe,” pled guilty yesterday to Count one of the indictment which charged that the defendant, along with three others, aiding and abetting each other, with the intent to cause death and serious bodily harm, did knowingly, willfully and intentionally take a Toyota Matrix that had been transported, shipped or received in interstate and foreign commerce, from the person of José E. Gómez-Saladín, by force, violence and intimidation by striking him in the head, and in perpetration of said offense caused his death, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The sentence recommendation contained in the plea agreement is for 24 to 30 years imprisonment.
On November 29, 2012, Ruben Delgado-Ortiz, Torres-Osorio, Alejandra Berrios-Cotto and Lenisse Aponte-Aponte devised a scheme to rob a victim because Aponte-Aponte did not have enough money to pay her rent. As part of the scheme, Berrios-Cotto and Aponte-Aponte would lure a victim and then Delgado-Ortiz and Torres-Osorio would approach the victim regarding a fictitious debt Aponte-Aponte owed Delgado-Ortiz, in the hopes the victim would satisfy the fictitious debt.
Later that night, the four co-defendants made their way to Padial Street. A blue Toyota Matrix stopped nearby and Aponte-Aponte gave Delgado-Ortiz and Torres-Osorio the signal to approach the car and execute the plan. Delgado-Ortiz and Torres-Osorio entered the car, and Delgado-Ortiz told Aponte-Aponte she had to give him the money she owed him. Delgado-Ortiz had pepper spray in his pocket and used it to simulate the presence of a weapon. The driver, later identified as José E. Gómez-Saladín, eventually drove to an ATM machine where he, accompanied by Delgado-Ortiz, withdrew $400.00 and gave it to Delgado-Ortiz.
The group later drove towards Sabarona and discussed Gomez-Saladín’s fate since he had seen their faces and could identify them. Eventually, the group went to a gas station and purchased gas. Sometime thereafter, Delgado-Ortiz forced Gómez-Saladín to stop driving the car. Delgado-Ortiz then drove the Matrix to an old abandoned prison in Guavate. There, parked the car, and everyone got out. Aponte-Aponte used her cell phone to illuminate the area. Delgado-Ortiz and Berriós-Cotto escorted Gómez-Saladín from the car and told him to kneel. They doused him with gasoline and lit him on fire. Gómez-Saladin began yelling and got up and started to run. He stripped off his pants before tripping on a mound of garbage that was at the scene. Delgado-Ortiz and Berríos-Cotto followed Gómez-Saladin and began hitting him with sticks and tubing they found in the area. They beat Gómez-Saladín until he was barely breathing. The four co-defendants then gathered the sticks and tubing used to beat Gómez-Saladín, placed them in the car, and left the prison in the Matrix. His partially decomposed body was found by authorities several days later where the defendants had left him.
Delgado-Ortiz then drove to another gas station and they purchased more gasoline in order to burn the Toyota Matrix. They then proceeded towards La Macanea Road. There, they exited the car and Torres-Osorio pour gas over the seats and the dashboard. He then set the car on fire. The four co-defendants then left the scene on foot. They stopped at a Shell Gas Station to buy refreshments. They also unsuccessfully attempted to withdraw more money from Gómez-Saladín’s bank account. The co-defendants left the area on foot and went to their respective homes.
Sentencing hearing was scheduled for April 7, 2015. The case is being prosecuted by Assistant U.S. Attorney Julia Meconiates and Senior Litigation Counsel Scott Anderson.
Ruben Delgado-Ortiz pled guilty on October 24, 2014; sentencing is scheduled for February 19, 2015. He faces a sentence of 30 years.
Indictment: Former Bel Aire Police Officers Lied About Purchase of FirearmsRead the Press Release
WICHITA, KAN. – Two former officers of the Bel Aire Police Department were charged Tuesday in a federal indictment alleging that one of them devised a scheme to buy and sell firearms by falsely claiming the firearms were property of the Bel Aire Police Department and would be used for law enforcement purposes, U.S. Attorney Barry Grissom said. The second former officer is accused of trying to cover up the crime.
Nathan A. Mavia, 26, Wichita, Kan., is charged with one count of mail fraud. Mavia was a Bel Aire officer from Feb. 2012 to June 2014.
Robert S. McCaslin, 40, Wichita, Kan., is charged with one count of making false statements during a federal investigation. McCaslin was a Bel Aire Officer from August 2007 to February 2014.
The indictment alleges that in order to buy firearms at reduced prices for personal use or resale Mavia devised a scheme to falsely certify that the firearms would be owned by the Bel Aire Police Department and would be used for law enforcement purposes. The indictment alleges:
- Mavia ordered three rifles from Sig Sauer, falsely certifying that they were being acquired for performing official duties, not for personal use. The order form was accompanied by a letter on police department letterhead, a form signed by the former chief of police in Bel Aire, a copy of Mavias’ police identification card and a cashier’s check. On Nov. 15, 2013, one of the rifles (a Sig Sauer Model 716 Patrol, 762 caliber) was delivered to the Bel Aire Police Department. Two other rifles were delivered to another location.
- On Jan. 29, 2014, the interim police chief in Bel Aire found an FNH, model PS90, 5.7X28 caliber rifle in the department armory. Department policy did not allow officers to carry such a firearm on duty. He contacted FNH and learned that two other PS90 rifles were purchased at the same time. The order for the guns was accompanied by a letter stating that the guns were being ordered for officers’ official duties, not for personal use or resale. The City of Bel Aire sent information to the Kansas Department of Revenue stating that the rifles were tax exempt because they were being purchased for the exclusive of the Bel Aire Police Department.
- On Dec. 20, 2013, McCaslin was interviewed by the Bureau of Alcohol Tobacco, Firearms and Explosives and the Sedgwick County Sheriff’s Office. He stated that he understood the PS90 firearms were purchased for personal use. He said that Mavia and another officer each ordered one. He said he did not know who received the third PS90. During a second interview on Dec. 23, 2013, McCaslin stated the third PS90 possibly was sold to one of his friends. Investigators located a man who purchased a PS90 from a Bel Aire officer for $699. No ATF Form 4473 was completed for the purchase.
- The indictment alleges Mavia paid another officer for one of the PS90 rifles, knowing that the rifle was being purchased by the officer, and that Mavia did not complete the required ATF form. Mavia knew at the time of the purchase that police department policy did not allow officers to carry this type of firearm.
If convicted, Maria faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on the mail fraud count; and McCaslin faces a maximum penalty of five years and a fine up to $250,000 on the charge of making a false statement. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sedgwick County Sheriff’s Department investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Honduran National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOSE HERNANDEZ-HERNANDEZ, age 35, a citizen of Honduras, was sentenced after having pled guilty to a one-count indictment for illegal reentry of a previously removed alien.
U.S. District Judge Jay C. Zainey sentenced HERNANDEZ-HERNANDEZ to 12 months imprisonment followed by one year of supervised release, and a $100 special assessment.
According to court documents, on or about September 15, 2014, HERNANDEZ-HERNANDEZ, reentered the United States after having been previously removed on July 26, 2013.
U.S. Attorney Polite praised the work of the ICE Enforcement and Removal Operations in investigating this matter. Assistant United States Attorney Spiro G. Latsis was in charge of the prosecution.
Honduran National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MARLON JOEL PAZ-MENDOZA, age 29, a citizen of Honduras, was sentenced today after having pled guilty to a one-count indictment for illegal reentry of a removed alien.
U.S. District Judge Jay C. Zainey sentenced PAZ-MENDOZA to time served since having been imprisoned since March 20, 2014, followed by one year of supervised release, and a $100 special assessment.
According to court records, on or about March 20, 2014, PAZ-MENDOZA was found in the United States after having been officially deported and removed on two prior occasions, most recently on or about March 14, 2014.
U.S. Attorney Polite praised the work of Immigration and Custom Enforcement and Removal in investigating this matter. Assistant United States Attorney Rick Veters is in charge of the prosecution.
Harrisburg Man Sentenced for Robbing Old National BankRead the Press Release
Follow @SDILNewsShawn Thomas Gregory, 39, of Harrisburg, Illinois, was sentenced on December 8, 2014, in United States District Court in East St. Louis to a term of 141 months in federal prison for his role in robbing the Harrisburg branch facility of Old National Bank (“ONB”), Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. Gregory pled guilty on September 17th to a four-count indictment charging him with conspiracy to commit bank robbery, aiding and abetting a bank robbery, aiding and abetting the use of a firearm during a crime of violence, and being a felon in possession of a firearm.
Evidence introduced in support of Gregory’s guilty plea and sentence showed that Gregory recruited his cousin, codefendant Casey Allan Heflin of Boaz, Kentucky, to assist him in robbing ONB on October 17, 2013. As shown by the bank’s video surveillance system, at approximately 9:09 a.m. on that date, Heflin entered the ONB facility with a loaded .45 caliber/.410 gauge handgun which had been provided to him by Gregory the prior evening. Heflin pointed the firearm at a teller and demanded money. Gregory waited in the parking lot to act as the get-away driver. After obtaining $4197 from the teller, Heflin and Gregory fled Harrisburg. They later divided the money from the robbery and split up. Gregory was arrested later that day in Harrisburg and Heflin was arrested the following day in Cape Girardeau, Missouri.
In addition to the near twelve year prison term, Gregory was ordered to pay $400 in special assessments and $4197 in restitution to ONB. Gregory was placed on a 3 year term of supervised release to follow his incarceration.
Heflin also pled guilty to robbing ONB and was previously sentenced to a term of 100 months in prison and also ordered to pay $4197 in restitution.
Gregory has been held without bond in the custody of United States Marshal since his arrest on federal charges in July 2014. Following sentencing, he was returned to the Marshal’s custody to await designation to a Federal Bureau of Prisons facility.
The federal investigation into the robbery was conducted by the Federal Bureau of Investigation, the Illinois State Police Zone 7 Investigations unit in Carmi, and the United States Attorney’s Office.
The case was prosecuted by Assistant United States Attorney James M. Cutchin.
Grand Canyon River Runner Sentenced for Dumping Trash in the Colorado RiverRead the Press Release
FLAGSTAFF, Ariz. – On Dec. 1, 2014, Nels Nicholas Niemi, 75, of Haines, Alaska was sentenced by U.S. Magistrate Judge Mark E. Aspey to pay fines totaling $1,500.00, along with court costs of $966.76, and assessments of $20.00 after having been found guilty of dumping refuse into the Colorado River and illegally collecting firewood in violation of his non-commercial private rafting trip permit. The defendant was convicted after a bench trial held on Oct. 29, 2014.
United States Attorney John S. Leonardo said “this prosecution and sentence remind all users of the Colorado River that the rules and regulations designed to protect the ecosystem within the Grand Canyon National Park are important and will be vigorously enforced.”
Evidence at trial showed that Niemi was the trip leader of a 12-day non-commercial rafting trip down the Colorado River through the Grand Canyon National Park. He was apprised by National Park Staff at the outset of his trip of the requirements of his permit including that driftwood could not be collected for fires and, at the end of the trip, the group take with them all refuse, trash and garbage produced. During the course of the river trip, trash was dumped into the Colorado River on a daily basis, either by Niemi or at his direction as the trip leader, and Niemi collected driftwood, which he used to make fires each night
At sentencing, evidence was produced showing that Niemi was employed by a commercial expedition company, which advertised the company’s commitment to the “Leave No Trace Behind” principle. The Court, in imposing the fines, costs and assessments, expressed its concern that Niemi displayed complete disregard for regulations designed to protect the river ecosystem. U.S. Magistrate Judge Aspey noted, “It is clear that you chose to abide by those regulations with which you agreed, and ignored those with which you did not.” The Court noted that such an attitude was particularly dangerous given the thousands of tourists who raft the Colorado River through the Grand Canyon each year.
The investigation in this case was conducted by National Park Service. The prosecution was handled by the U.S. Attorney’s Office, District of Arizona, Flagstaff.
CASE NUMBER: CR- 3:14-po-04291-MEA
RELEASE NUMBER: 2014-071_ NiemiFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Former eBAY Manager Pleads Guilty to Stealing More Than $200,000 in IRS RefundsRead the Press Release
SAN JOSE – Sanjeev Bais pleaded guilty yesterday afternoon to 14 counts of theft of government property, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Thomas McMahon.
According to the plea, between February 2009 and April 2010, Bais and his partner stole $224,792 in IRS refunds by filing false tax returns. Bais, an eBay, Inc. manager at that time, had an email list consisting of employees of San Jose based technology companies. Using that email list, Bais sent an email soliciting tax return preparation services by a Certified Public Accountant named “Raj Malhotra.”
Bais admitted that while operating under the alias “Raj Malhotra,” he asked these victims for personal information, including copies of their driver’s licenses, Forms W-2, Forms 1099 and 1098, and other tax related documents. He also instructed these people to pay for the tax returns by submitting payments to his PayPal account. Bais and his partner prepared tax returns showing false Schedule C business losses, false “Other” losses, and false Schedule A items. Additionally, instead of sending the victims copies of the tax returns filed with the IRS, Bais and his partner sent fake copies that accurately reflected the individual tax liability of the victims. Bais and his partner submitted the tax returns to the IRS using Intuit, Turbo Tax, and by submitting paper tax returns. To further conceal his crimes, Bais and his partner deposited cash into the victims’ real bank accounts in amounts that matched the refunds shown on the fake tax returns that he sent to them. Bais used the fraudulently obtained money to pay his mortgage on a property in Belmont and provided $27,000 to his partner to deposit into an account with the State Bank of India.
Bais, 41, of San Jose, was charged on April 17, 2013, with 14 counts of theft of government property and 14 counts of aggravated identity theft. He pleaded guilty to the 14 counts of theft of government property.
Bais’s sentencing hearing is scheduled for March 30, 2015, at 1:30 p.m. before the Honorable Edward J. Davila, United States District Court Judge, in San Jose. The maximum statutory penalty for each count of theft of government property, in violation of 18 U.S.C. § 641, is 10 years imprisonment and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Thomas Moore is the Assistant U.S. Attorney who is prosecuting this case. The prosecution is the result of an investigation the IRS, Criminal Investigation.
Please note, an indictment contains only allegations and, as with all defendant, Sanjeev Bais must be presumed innocent unless and until proven guilty.
Former United Commercial Bank Chief Financial Officer Convicted of Conspiracy to Mislead AuditorsRead the Press Release
SAN FRANCISCO – Craig S. On pleaded guilty today to one count of Conspiracy to Make a Materially False and Misleading Statement to an Accountant, announced U.S. Attorney Melinda Haag; Federal Deposit Insurance Corporation, Office of the Inspector General, Special Agent in Charge Wade Walters; Special Inspector General for the Troubled Asset Relief Program Christy Romero; Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau, Office of the Inspector General, Special Agent in Charge Scott Redington; and FBI Special Agent in Charge David J. Johnson.
On, 62 of Berkeley, Calif., is the former Chief Financial Officer of United Commercial Bank (UCB). UCB was a commercial bank headquartered in San Francisco, Calif., with branch offices throughout the United States as well as in China and Taiwan. Until 2009, its holding company, UCBH Holdings, Inc., was publicly traded on NASDAQ.
On Nov. 6, 2009, UCB was taken over by the Federal Deposit Insurance Corporation (FDIC). According to the Information, the Troubled Asset Relief Program provided approximately $297 million in federal funds to UCB on Nov. 14, 2008, during the 2008 financial crisis.
According to court documents, On, beginning in 2009, together with others, engaged in a conspiracy to deceive UCB’s auditors by manipulating the bank’s books and records in a manner that misrepresented and concealed the bank’s true financial condition and performance and caused the bank to issue materially false and misleading financial statements in violation of 18 U.S.C. § 371. On further admitted that he did not inform UCB’s auditors about approximately $67 million in potential losses from the sale of loans or “notes” held by the bank even though he knew he was required to do so.
The maximum statutory penalty for a conviction for conspiracy, in violation of 18 U.S.C. § 371, is five years in prison and a fine of $250,000, plus restitution. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Adam A. Reeves and Robert David Rees are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Denise Oki, Phillip Villanueva, and Bridget Kilkenny. The prosecution is the result of a five year investigation by the FDIC Office of Inspector General, the SIGTARP, the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau Office of Inspector General, and the FBI.
Former Union President Sentenced to 22 Months in Prison for Extortion Conspiracy Involving Christmastime Tribute PaymentsRead the Press Release
NEWARK, N.J. - The former president of International Longshoremen’s Association (ILA) was sentenced today to 22 months in prison for conspiring to extort ILA Local 1235 longshoremen on the New Jersey piers for Christmastime tribute payments, New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Thomas Leonardis, 57, of Glen Gardner, New Jersey, the president of the union from 2008 through 2011, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to Count Three of a second superseding indictment charging him with conspiring to extort Christmastime tributes from ILA Local 1235 members. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court: During their guilty plea proceedings, Leonardis – along with Vincent Aulisi, 82, of West Orange, New Jersey, the president of ILA Local 1235 from approximately 2006 through 2007; and Robert Ruiz, 56, of Watchung, New Jersey, the delegate of the union from approximately 2007 through 2010 and former ILA representative – admitted that they conspired with each other and others to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation. Leonardis and Ruiz were suspended from their positions following their arrest in January 2011. Aulisi had already retired from his employment on the New Jersey piers at the time of his arrest.
Charges are still pending against three defendants in the superseding indictment, including a racketeering conspiracy charge against Stephen Depiro, 59, of Kenilworth, New Jersey – a soldier in the Genovese organized crime family of La Cosa Nostra. Since at least 2005, Depiro has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235, and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235.
In addition to the prison term Judge Cecchi sentenced Leonardis to serve three years of supervised release.
Aulisi and Ruiz previously pleaded guilty before Judge Cecchi to conspiring to extort Christmastime tributes from ILA Local 1235 members. In October 2014, Aulisi and Ruiz were sentenced to 18 months and 20 months in prison, respectively.
U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia, with the investigation leading to today’s sentencing. They also thanked the Waterfront Commission of New York Harbor for its cooperation and assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.
The charges and allegations against the remaining defendants are merely accusations and they are considered innocent unless and until proven guilty.
14-431Defense counsel: Michael N. Pedicini Esq., Chatham, New Jersey