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Thursday 23 October 2014
Nampa Woman Arrested on Charge of Use of Interstate Commerce Facilities in the Commission of Murder-for-HireRead the Press Release
Boise – Monique Christine Martinez, 32, of Nampa, Idaho, made an initial appearance this morning in Boise on a complaint charging her with using interstate commerce facilities in the commission of murder-for-hire. United States Magistrate Judge Ronald E. Bush set a preliminary hearing and detention hearing for October 27, 2014.
According to the complaint, Martinez contacted an individual by Facebook in California in order to hire someone to kill her husband. On October 17, 2014, Martinez met with an undercover FBI Special Agent, whom she believed was a hit man. Martinez advised the undercover agent that she wanted her husband dead and provided the agent with $350 in U.S. currency and promised additional payment later in the week. She provided the agent with a hand written note, which contained her husband’s name, the address of his employment and the address of his mother’s home, where he was recently living. Martinez showed the agent photographs of her husband on her smartphone, provided his work schedule, described his tattoos, and described the vehicle he drove. Martinez suggested that the best time to kill her husband was either as he got off work or when he was leaving his gym. Martinez was arrested in Nampa on October 22, 2014, at her residence in Nampa.
Using interstate commerce facilities in the commission of murder-for-hire is punishable by up to ten years in prison, a $250,000 fine, and three years of supervised release.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force. The Metro Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and the Idaho Department of Correction.
A complaint is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Muscatine Man Sentenced on Federal Drug Trafficking OffenseRead the Press Release
DAVENPORT, IA – On October 23, 2014, Russell Lee Brossart, age 42, of Muscatine, Iowa, was sentenced to 168 month in prison by Chief United States District Judge James E. Gritzner for conspiracy to distribute at least 500 grams of a mixture of substance containing methamphetamine and at least 50 grams of actual methamphetamine, announced United States Attorney Nicholas A. Klinefeldt. Brossart was ordered to serve five years supervised release following the imprisonment, and to pay $100 towards the Crime Victims Fund.
Beginning about November 15, 2013, and continuing until about February 21, 2014, Brossart distributed more than 50 grams of actual methamphetamine in the Muscatine, Iowa area. During November 2013, law enforcement utilized a confidential informant to complete two controlled purchases of “ice”—also referred to as “crystal”—methamphetamine from Brossart while under law enforcement surveillance. On November 25, 2013, law enforcement executed a search warrant for Brossart’s vehicle in Muscatine and located, among other things, approximately 6 grams of ice methamphetamine. On February 20, 2014, law enforcement located an additional 29.66 grams of ice methamphetamine in a vehicle driven by Brossart. On February 21, 2014, police executed a search warrant at Brossart’s residence in Muscatine and seized approximately 60 grams of ice methamphetamine, a digital scale, and packaging materials. All of the above-referenced methamphetamine belonged to Brossart. Brossart knowingly distributed ice methamphetamine to multiple customers in the Muscatine area.
This case was investigated by the Iowa Department of Narcotics Enforcement, the Muscatine County Sheriff’s Office, the Muscatine, Iowa, Police Department, the Muscatine County Drug Task Force, the Johnson County Drug Task Force, and the U.S. Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Monroe County Man Sentenced to 47 Months in Prison for Distributing Crack CocaineRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 32-year-old Stroudsburg man was sentenced to 47 months in prison yesterday by Senior U.S. District Court Judge James M. Munley for distributing crack cocaine in the Monroe County area during a seven-month time period.
According to United States Attorney Peter Smith, the defendant, Dominic Darby, previously pleaded guilty to distributing and possessing with intent to distribute crack cocaine from October 2013 to April 30, 2014.
Darby was charged in a criminal Information filed by the United States Attorney on July 17, 2014, following an investigation by special agents of the Federal Bureau of Investigation and the Pennsylvania State Police.
Darby must also serve three years on supervised release following his prison sentence, and pay a $100 special assessment.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Michigan Pizza Franchise Owners Plead GuiltyRead the Press Release
Today, two West Bloomfield, Michigan, residents pleaded guilty to tax fraud in the U.S. District Court for the Eastern District of Michigan, announced the Justice Department and Internal Revenue Service (IRS).
Maher Bashi, who served as Happy’s Pizza’s corporate chief operating officer, and Tom Yaldo, an owner of numerous Happy’s Pizza franchises, pleaded guilty to conspiracy to defraud the United States. According to the indictment, their conduct included, among other things, creating and maintaining fraudulent accounting records and falsely reporting income taxes and payroll taxes.
A multiple count indictment was unsealed July 16, 2013, alleging that from approximately June 2004 through April 2011, Bashi, Yaldo and others conspired to divert business receipts, underreport wages and understate the true income and expenses of specified Happy’s Pizza franchises. According to the indictment, the scheme resulted in the specified franchises paying more than $2.1 million in unreported wages to employees and shareholders.
Documents filed with the court indicate Bashi, Yaldo and others executed a scheme which systematically underreported the taxable income and payroll taxes of Happy’s Pizza franchises to the IRS and distributed the resulting gain among the conspirators and other Happy’s Pizza franchise partners. Additionally, documents filed with the court indicate Yaldo caused at least three Happy’s Pizza franchises in which he held an ownership interest to file false corporate income tax returns in 2008 and 2009 that underreported a total of more than $1,581,000 in gross receipts. According to the plea agreement, Bashi and Yaldo will pay restitution to the IRS for unpaid income taxes and employment taxes.
Bashi and Yaldo each face a statutory maximum sentence of five years in prison and a fine of up to $250,000.
This case was investigated by IRS – Criminal Investigation, the Drug Enforcement Administration and the FBI. It is being prosecuted by Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Justice Department’s Tax Division.
Miami-Dade Residents Convicted in $8 Million Investment Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Lawrence Foster, 49, of Miami Beach, the President of Paradise is Mine, was found guilty by a federal jury in Miami of conspiring to commit wire fraud and seven counts of wire fraud. Johana Leon, 38, of Miami Beach, a corporate officer of Paradise is Mine, meanwhile, was found guilty of three counts of structuring currency transactions by the same jury.
The trial evidence showed that Paradise is Mine received approximately $8 million from approximately 90 investors after the company promised that it owned land in the Bahamas and would use investor funds to develop the island of Rum Cay in the Bahamas. In its promotional materials, Paradise is Mine claimed that it was featured in the Wall Street Journal, USA Today and other publications, and that Super Bowl MVP Joe Montana and other celebrities purchased land from Paradise is Mine. Bank records, however, show that no money went to the Bahamas. Instead, Leon withdrew over $1 million as cash below the $10,000 currency transaction reporting level. Foster spent investor money on personal expenses, including gardening and a Bentley GT. Witnesses from the Wall Street Journal and USA Today testified that the Paradise is Mine articles had never appeared in either publication. Finally, the accountant for Joe Montana testified that Mr. Montana never received land from Paradise is Mine.
United States District Judge Donald L. Graham remanded Foster to the custody of the Bureau of Prisons and set sentencing for January 5, 2015. Foster faces a maximum term of 20 years in prison for each count. Leon faces a term up to five years in prison for each count of conviction.
Mr. Ferrer commended the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorneys H. Ron Davidson, Robert Watson, and Harold Schimkat.
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.
Miami-Dade Resident Sentenced in Stolen Identity Unemployment Insurance Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Richard Walker, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations (OLRFI-Miami), and Jesse Panuccio, Executive Director, State of Florida’s Department of Economic Opportunity (DEO) announce that Rodney Fleurimond, 24, of Miami, was sentenced today before U.S. District Judge Federico A. Moreno to twenty-four months and one day in prison, to be followed by three years of supervised release. Fleurimond was furthered ordered to pay $60,405 in restitution.
Fleurimond previously entered a plea of guilty to one count of fraudulently using unauthorized access devices to obtain anything of value aggregative over $1,000, in violation of Title 18, United States Code, Section 1029(a)(2), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court records, from October 20, 2013 through June 26, 2014, the State of Florida unemployment insurance claims of at least 188 victims were accessed online from Fleurimond’s residences using the victims’ personally identifying information, including their names and social security numbers. A total of $60,405 in fraudulent unemployment insurance benefits was paid into bank accounts controlled or used by Fleurimond. Specifically, the fraudulent unemployment insurance claims of eleven victims were deposited into Fleurimond’s personal checking account; twelve additional fraudulent claims were deposited into other accounts associated with Fleurimond. Bank photographs reflect Fleurimond withdrew fraudulent funds from each of these accounts. The amount of loss resulting from Fleurimond’s offense was $142,905.
Mr. Ferrer commended the investigative efforts of OLRFI-Miami and DEO. This case was prosecuted by Assistant U.S. Attorney Jamie R. Galvin.
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.
Mexican National Sentenced for Meth DistributionRead the Press Release
POCATELLO – Jose Fabian Felix-Burgos, 41, of Sinaloa, Mexico, was sentenced yesterday to 115 months in prison, followed by three years of supervised release for distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Felix-Burgos to pay a $400 fine. Felix-Burgos pleaded guilty to the charge on June 25, 2014.
According to the plea agreement, on August 1, 2013, the defendant assisted in the delivery of methamphetamine to an undercover officer in Heyburn, Idaho. Specifically, the defendant met with a co-defendant and the undercover officer at a restaurant in Heyburn, Idaho. The purpose of the meeting was to provide methamphetamine to the undercover officer. During the meeting, at the direction of the co-defendant, the defendant retrieved a box containing over a pound of methamphetamine from their vehicle, and gave it to the undercover officer.
The case was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration, in conjunction with, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Canyon County Narcotics Unit, Meridian Police Department, Ada County Sheriff’s Office, Idaho State Police, and the Mini-Cassia Drug Task Force.
The OCDETF program is a federal multi agency, multi jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Mexican National Indicted for Sequoia National Park Marijuana Cultivation OperationRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Toribio Cruz-Galvan (Cruz), 29, an undocumented alien from Michoacàn, Mexico, charging him with conspiring to manufacture, distribute, and possess with intent to distribute marijuana, manufacturing marijuana, possessing marijuana with intent to distribute, and damaging public land and natural resources, United States Attorney Benjamin B. Wagner announced.
According to court documents, Cruz was involved in the cultivation of 1,016 marijuana plants in the Yucca Mountain area of Sequoia National Park. The Yucca Mountain area is in an area generally known for its spring wildflower display. In addition to growing marijuana plants, park rangers found processed marijuana, a shotgun, ammunition for various firearms, and a digital scale. The marijuana cultivation operation caused significant damage to National Park land and natural resources. Fertilizer, rodenticide, propane tanks, and 300 pounds of trash were removed from the grow site. It is estimated that over one million gallons of water was diverted from a nearby spring to irrigate the marijuana plants.
This case is the product of an investigation by the National Park Service. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Cruz is detained as a flight risk and danger to the community and is scheduled for arraignment and plea on the indictment on December 15, 2014.
If convicted of the drug offenses, Cruz faces a maximum statutory penalty of 20 years in prison and a $1 million fine. The maximum statutory penalty for the environmental crime is 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.Medina Man Faces Crack Cocaine ChargesRead the Press Release
A federal grand jury returned a one-count indictment charging Jeimil A. Henderson, age 22, of Medina, with possession with the intent to distribute and distribution of crack cocaine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Henderson was arrested by members of the Medina County Drug Task Force and Drug Enforcement Administration on a criminal complaint after an investigation.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Medina County Drug Task Force, Medina Police Department and the Drug Enforcement Administration. The matter is being prosecuted by Assistant United States Attorney Teresa Riley.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Mecklenburg Co. Social Worker Pleads Guilty in Connection with Medicaid Fraud SchemeRead the Press Release
The Defendant Stole the Identities of Clients and Sold them to Conspirator in Exchange for Cash and Gifts
CHARLOTTE, N.C. – A social worker with the Mecklenburg County Department of Social Services (DSS) appeared in federal court today and pleaded guilty to federal charges for her role in a healthcare fraud scheme involving the stolen identities of clients enrolled with the Medicaid program, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Ieshia Hicks Watkins, 33, of Charlotte, pleaded guilty before U.S. Magistrate Judge David S. Cayer to one count of health care fraud conspiracy and one count of receiving illegal kickbacks.
U.S. Attorney Tompkins is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte.
According to filed court documents and today’s plea hearing, October 2010 to February 2012, while employed at DSS, Watkins stole the names and identities of DSS clients, most of whom were minors. As a social worker, Watkins had access to the information contained in the client files on her caseload and the caseload of others within DSS. Court records indicate that Watkins sold the stolen information to her conspirator, Ronnie Lorenzo Robinson, who then used it to file fraudulent reimbursement claims with Medicaid for sham mental and behavioral health services that were never provided to those Medicaid recipients.
Watkins admitted in court today that she sold the misappropriated information in exchange for cash and gifts. According to information contained in court filings, Watkins received at least $10,000 as payment for selling DSS client names and identifying information to Robinson. Robinson then submitted nearly $30,000 in false and fraudulent claims to Medicaid using the stolen information.
“Driven by greed, Watkins used her position to access the personal information of DSS clients and sold it to her conspirator in exchange for cash and gifts. This case is particularly troubling because these were families and minor children whose welfare Watkins was assigned to protect. Instead, she turned them into victims of identity theft for her own benefit. Since Watkins’ conscience wasn’t enough to stop her from committing this crime, my office will make sure she’s held accountable for it,” said U.S. Attorney Tompkins.
“Ieshia Watkins utilized her trusted position as a social worker to victimize some of the most vulnerable families in North Carolina. Instead of putting the best interests of those parents dependent on Medicaid for their children’s care, Ms. Watkins allowed personal greed to override the commitment she made to those families. Health care fraud wastes taxpayer’s money and increases costs for everyone,” said John Strong, Special Agent in Charge of the FBI in North Carolina.
At sentencing, Watkins faces a maximum term of 10 years in prison and a $250,000 fine for the health care fraud conspiracy charge. She also faces a maximum of five years in prison and a $250,000 fine for receiving illegal kickbacks. In her plea agreement, Watkins has agreed to pay full restitution to Medicaid for any losses resulting from her criminal scheme. The final restitution amount will be determined by the court at Watkins’ sentencing hearing, which has not been scheduled yet. Watkins remains free on bond pending sentencing.
Robinson pleaded guilty in January 2014 to two counts of health care fraud and is currently awaiting sentencing.
The investigation into Watkins was handled by the FBI with assistance from the North Carolina Medicaid Investigations Division. The prosecution was handled by Assistant U.S. Attorney Kelli Ferry of the U.S. Attorney’s Office in Charlotte.
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
McLaughlin, SD Man Sentenced for Abusive Sexual Contact with a MinorRead the Press Release
Bismarck - U.S. Attorney Timothy Q. Purdon announced that on October 23, 2014, Peter Spotted Horse, age 60, McLaughlin, SD, was sentenced before U.S. District Judge Daniel L. Hovland to serve 51 months imprisonment for Abusive Sexual Contact with a Minor.
Spotted Horse was charged by Indictment with Abusive Sexual Contact on January 8, 2013. Spotted Horse later changed his plea to guilty. Judge Hovland also sentenced Spotter Horse to five years supervised release and ordered him to pay $100 special assessment to the Crime Victims Fund, as well as restitution later to be determined.
This case was investigated by the Bureau of Indian Affairs.
Assistant U.S. Attorney Gary Delorme prosecuted the case.
Mastermind of International Diamond Center Robbery SentencedRead the Press Release
Tampa, FL – U.S. District Judge Charlene Edwards Honeywell yesterday sentenced Bryan Bobby Beaudoin (25, Orlando) to 11 years and 6 months in federal prison for conspiring to commit robbery and using a firearm in furtherance of the armed robbery. The Court also ordered Beaudoin to forfeit $6,277, which represents the proceeds from the sale of stolen jewelry and the firearm used in the robbery. He pleaded guilty on July 31, 2014.
According to court documents, on November 22, 2013, Clyde Bernard Johnson and Anthony Mina Wahba entered the International Diamond Center in Tampa, concealing their identities with sunglasses and hats. Johnson brandished a black 9mm pistol and took control of the store, while Wahba took a hammer and went directly to the glass display cases containing expensive watches, loose diamonds, and diamond rings. Wahba shattered the glass cases with the hammer and retrieved numerous items of jewelry, with an approximate retail value of $2.1 million. They also stole some of the victim-employees’ wallets. Before the pair fled the store, Johnson fired a shot into the floor near the counter.
Beaudoin, who had conducted surveillance on the store earlier that day, planned the robbery and gave instructions to Johnson and Wahba. He also provided Johnson with the firearm used in the robbery. Beaudoin waited at a nearby location during the robbery, and then later met with Johnson and Wahba to split the proceeds. As the three were traveling back to the Orlando area, they stopped at a gas station and used one of the victim-employee’s stolen credit cards to purchase fuel. All three men were captured on the gas station’s surveillance videotape. When law enforcement officers attempted to arrest Beaudoin, he fled, but he was ultimately apprehended after a car chase through the Orlando area.
Johnson and Wahba previously pleaded guilty for their roles in the armed robbery and are scheduled to be sentenced later this month.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Josephine W. Thomas.
This case is a part of ATF’s Frontline Strategy to combat violent crime in communities.
Martinsburg Man Convicted of Cocaine TraffickingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Eddie Young, III, 40, of Martinsburg, West Virginia, was convicted for his role in a drug trafficking ring, United States Attorney William J. Ihlenfeld, II, announced today.
Young pled guilty today to one count of “Use of Telephone to Facilitate Distribution of Cocaine Base” after an investigation by the Eastern Panhandle Drug and Violent Crimes Task Force. He faces up to eight years in prison and a fine of up to $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Jarod Douglas and Anna Krasinski prosecuted the case on behalf of the government.
U.S. District Judge Gina M. Groh presided.
Manhattan U.S. Attorney Files Civil Injunction Lawsuit Against Five Tax Preparers to Prohibit Them from Engaging in Tax Preparation BusinessRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States filed a civil injunction complaint in Manhattan federal court against five individuals, LESTER MORRISON, PAULETTE BULLOCK, GARY HANNA, JOY DAVID, and KEVIN VADEN, who were previously convicted of preparing fraudulent federal tax returns through a tax preparation business, to prohibit them from preparing tax returns for others or engaging in activities that substantially interfere with the administration of federal tax laws.
Manhattan U.S. Attorney Preet Bharara said: “Tax preparers who filed fraudulent returns using the names of deceased children or by concocting phony business losses should not be permitted to continue preparing tax returns for others. This Office is committed to bringing cases like this to protect the integrity of the tax system and the general treasury, which is, after all, the people’s money.”
As set forth in the Complaint:
MORRISON, BULLOCK, HANNA, DAVID, and VADEN all were involved in a tax preparation business with locations in the Bronx and in Englewood, New Jersey. Through that tax preparation business, defendants orchestrated a tax fraud scheme from 2000 to 2008. As part of the scheme, defendants prepared thousands of false and fraudulent tax returns that sought improper deductions through a variety of deceptive means. For example, defendants used the stolen identities of deceased children to claim those children as dependents for the purpose of seeking deductions, claimed phony business losses for non-existent businesses, and falsely claimed education credits.
In 2009 and 2010, all five defendants were indicted based on their participation in this tax fraud scheme. Subsequently, all defendants pled guilty to tax fraud in federal court. HANNA, DAVID, and VADEN have been released from prison, while BULLOCK and MORRISON are scheduled to be released in 2015 and 2016, respectively.
To prevent these defendants from resuming the practice of preparing false and fraudulent tax returns or otherwise interfering with tax collection and administration in the future, the United States seeks a permanent injunction against each defendant to bar him or her from preparing tax returns for others or engaging in any other activity that substantially interferes with the administration of federal tax laws.
The case is being handled by the Office’s Tax and Bankruptcy Unit. Assistant U.S. Attorney Li Yu is in charge of the case.
Manhattan U.S. Attorney and EPA Announce Lawsuit Against Poultry Slaughterhouse for Violations of Federal Clean Water ActRead the Press Release
Defendants Agree to Injunctive Relief and Payment of $330,000 Penalty
Preet Bharara, the United States Attorney for the Southern District of New York, and Judith Enck, Regional Administrator of the U.S. Environmental Protection Agency (“EPA”), announced today that the United States has filed and simultaneously entered into a consent decree settling a civil lawsuit against the KIRYAS JOEL POULTRY PROCESSING PLANT, INC. and KIRYAS JOEL MEAT MARKET CORPORATION (collectively, “Defendants”), for violations of the Clean Water Act (“CWA”) in connection with the operation of a poultry processing plant in Orange County.
U.S. Attorney Preet Bharara stated: “For years, the defendants flouted the law by repeatedly discharging waste from their poultry slaughterhouse into the waters of the United States. Today’s consent decree will ensure that the defendants do not resume these illegal practices in the future and requires them to pay a significant financial penalty for their misconduct. ”
EPA Regional Administrator Judith Enck stated: “From disposing of chicken parts and fats directly into storm drains and sewers, to discharging animal waste into Ramapo River tributaries, this poultry processing plant has a long history of violating the Clean Water Act. This legal agreement and fine will help protect the Ramapo River.”
According to the allegations in the Complaint filed today in White Plains federal court:
At various times between September 2008 and March 2012, the Defendants have spilled and allowed the overflow of untreated wastewater from their poultry processing plant into storm drains and storm sewers that discharge into two tributaries of the Ramapo River, known as Highland Brook and Tributary No. 25, in the Village of Kiryas Joel, in Orange County, New York. Between January 2008 and May 2011, Defendants also failed to obtain a permit for the discharge of stormwater associated with industrial activities, and illegally discharged contaminated stormwater through storm drains. Finally, from January 2008 to April 2011, Defendants discharged substantial volumes of untreated wastewater to the local sewage plant, interfering with that plant’s operations and causing contaminated waste to be discharged into the waters of the United States in violation of the sewage plant’s permit.
In the consent decree filed today, Defendants admit, acknowledge, and accept responsibility for the following:
- At various times between September 2008 and March 2010, and again on March 18, 2012, Defendants took inadequate steps to prevent spills of untreated wastewater from overflowing into storm drains that discharged to waters of the United States.
- From at least 2008 until May 1, 2011, as dischargers of stormwater associated with industrial activity, Defendants failed to apply for an individual permit or to seek coverage under a stormwater general permit, as required by law.
- At various times from at least 2008 until May 1, 2011, Defendants took inadequate steps to prevent stormwater associated with their industrial activities from discharging into storm drains and storm sewers that ultimately discharged into waters of the United States.
- At various times between January 2008 and April 2011, Defendants discharged wastewater containing excess concentrations of pollutants into the sewage plant at levels that caused violations of the plant’s permit.
Pursuant to the consent decree filed today in the United States District Court in White Plains, Defendants will pay a civil penalty of $330,000. To ensure Defendants’ compliance with the CWA, Defendants also agree, among other measures, to conduct ongoing monitoring and recording of pretreatment operations and to submit to EPA an emergency operation plan and a corrective plan of action to prevent CWA violations from reoccurring. Defendants will be subject to substantial additional penalties if they fail to adhere to any of the deadlines in the consent decree and cause further violations of the CWA.
The consent decree will be lodged with the Court for a period of at least 30 days before it is submitted for the Court’s approval, in order to provide public notice and to afford members of the public the opportunity to comment on the consent decree.
This case is being handled by the Office’s Environmental Protection Unit. Assistant United States Attorney Tomoko Onozawa is in charge of the case.
KJP CD - 2014.10.23 CONSENT DECREE (to be filed)
United States v. KJPPP, 14 Civ. 8458 (VB) - ComplaintLouisiana Tax Return Preparer Sentenced to Prison for Filing False Income Tax Returns and Identity TheftRead the Press Release
A Robert, Louisiana, woman was sentenced today to serve 87 months in prison for filing false tax returns, corruptly endeavoring to obstruct or impede the Internal Revenue Service (IRS) and aggravated identity theft, announced the Justice Department and IRS.
Hazel M. McGary, 46, aka Hazel M. Alexander and Hazel M. Kimble, was also ordered to serve two years of supervised release following her prison term and to pay $148,673 in restitution to the IRS.
According to court documents, from 2008 through November 2013, McGary owned and operated a series of tax preparation businesses under different names, including Just for You Services, Just For Taxes and H&H Unlimited Services, in Hammond, Albany, Baton Rouge and Covington, Louisiana. In 2012, McGary’s tax preparation location in Albany operated as a business where clients were permitted to drive their cars to a drive-through window in order to have their tax returns prepared.
As part of her plea agreement, McGary admitted that she prepared and filed false returns that claimed artificially high tax refunds, primarily by abusing the Earned Income Tax Credit. Court documents further show that McGary obtained electronic filing numbers from the IRS using the names and social security numbers of other individuals in an effort to hide her fraudulent activity. McGary falsely listed these other individuals’ names and identification numbers on the returns she filed but did not identify herself as the preparer. McGary further filed at least one false return in her own name on which she failed to include tax preparation fees she received as income.
Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department’s Tax Division would like to thank IRS-Criminal Investigation, in partnership with the Louisiana State Police, who investigated the case, and Trial Attorneys Hayden Brockett and Kevin Lombardi of the Tax Division, who prosecuted the case.
Lorain Man Faces Child Pornography IndictmentRead the Press Release
Robert Noel, 54, of Lorain, was charged with receiving and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about August 16, 2014, through on or about September 17, 2014, in the Northern District of Ohio, Eastern Division, and elsewhere, Noel knowingly received, using any means and facility of interstate and foreign commerce, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct, and which files had been shipped and transported in and affecting interstate and foreign commerce.
The indictment also charges that on September 25, 2014, Noel possessed an external computer hard drive that contained child pornography.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Elyria Office of the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Lorain Man Charged with Child Pornography ViolationsRead the Press Release
Scott Eric Sherwood, 54, of Lorain, was charged with transporting and possessing visual depictions of minors engaged in sexually explicit conduct, Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about October 1, 2012, through on or about November 1, 2013, in the Northern District of Ohio, Eastern Division, and elsewhere, Sherwood knowingly transported, using any means and facility of interstate and foreign commerce and in and affecting interstate and foreign commerce, numerous computer files, which files contained visual depictions of a real minor engaged in sexually explicit conduct.
The indictment also charges that on September 25, 2014, Sherwood possessed an external computer hard drive that contained child pornography.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Elyria Office of the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
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Lapwai Man Pleads Guilty to Failing to AppearRead the Press Release
COEUR D'ALENE - Delbert Daniel George, 30, of Lapwai, Idaho, pleaded guilty yesterday to failing to appear for sentencing, U.S. Attorney Wendy J. Olson announced. George was indicted by a federal grand jury in Coeur d'Alene on May 20, 2014.
According to the plea agreement, George admitted that on May 8, 2014, he was to be sentenced for the offense of making a false statement to a federal official. He did not appear for sentencing and the court issued a warrant for his arrest. George was later arrested by Nez Perce Tribal Police.
The charge of failure to appear is punishable by up to five years in prison, a maximum fine of $250,000.00, and up to three years of supervised release. Any sentence the court imposes for George’s failure to appear must run consecutive to the sentence he receives for his initial violation of making a false statement to a federal official.
Sentencing is set for January 29, 2015, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Coeur d'Alene. George will remain in custody until his sentencing.
The case was investigated by the Nez Perce Tribal Police and the Federal Bureau of Investigation (FBI).
Lancaster Man Sentenced to 80 Months in Federal Prison for Transporting and Shipping Child PornographyRead the Press Release
DALLAS — Meliton Torres, 32, of Lancaster, Texas, was sentenced this afternoon by U.S. District Judge Ed Kinkeade to 80 months in federal prison following his guilty plea in September 2013 to one count of transporting and shipping child pornography. Judge Kinkeade remanded Torres, who had been on bond, into custody. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to plea documents filed in the case, Torres admitted using the Internet and file-sharing software to share and transmit images and video files of minors engaged in sexually explicit conduct. In March 2012, an officer with the Dallas Police Department’s Internet Crimes Against Children (ICAC) Unit, working online in an undercover capacity, downloaded images and videos from Torres’s shared files. On March 16, 2012, the Dallas Police Department executed a search warrant at Torres’s residence and seized computers and computer media, which were then analyzed by the North Texas Regional Computer Forensic Lab. More than 200 images and videos of child pornography were on the seized media. Of those, 23 images and 18 videos depicted victims who have been identified.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the Dallas Police Department’s ICAC and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Camille Sparks prosecuted.
Kansas Man Charged with Armed Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Johnson County, Kan., man was charged in federal court today for the armed robbery of Bank of Weston.
Marcus Aurellius Moon, 29, of Johnson County, Kan., was charged in a two-count criminal complaint filed in the U.S. District Court in Kansas City, Mo.
Today’s criminal complaint alleges that Moon stole approximately $26,000 from the Bank of Weston on Wednesday, Oct. 22, 2014, and that he used a firearm during a crime of violence.
According to an affidavit filed in support of the federal criminal complaint, Moon entered the bank wearing a silver ski mask and carrying a semi-automatic handgun. Moon allegedly walked up to a teller station, pointed his handgun at a bank employee, and said “gimmie the money.” The teller put the money in a plastic bag that Moon was holding, the affidavit says. Moon allegedly noticed another bank employee was counting money, and demanded money from the second employee, who put several stacks of cash into the bag. Moon then allegedly went to another teller station and demanded cash before fleeing from the bank.
The Platte County Sheriff’s Department broadcast to neighboring jurisdictions about the robbery, including a vehicle description and a description of the suspect. Officers with the Atchison, Kan., Police Department set up surveillance around the Amelia Earhart Bridge. They saw Moon driving a vehicle that matched the description given in the broadcast and tried to stop it. However, according to the affidavit, Moon placed the vehicle in reverse, striking police vehicles and escaping. During Moon’s attempts to flee, an Atchison police officer fired his gun. Moon was not struck and was able to escape. Atchison police pursued the suspect for several blocks until his vehicle got stuck in a residential area and Moon was taken into custody.
Officers found a loaded SCCY 9mm handgun inside the vehicle, the affidavit says, along with a silver ski mask and a large amount of money.
Dickinson cautioned that the charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Atchison, Kan., Police Department, the Weston, Mo., Police Department, the Platte County, Mo., Sheriff’s Department and the FBI.KC Man Charged with Producing Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was charged in federal court today with producing child pornography after taking videos and photos of a teenager who responded to his online advertisement for modeling.
Marcus S. Clarke, 42, of Kansas City, was charged in a criminal complaint filed in the U.S. District Court of Kansas City, Mo., with producing child pornography.
According to an affidavit filed in support of today’s criminal complaint, a 15-year-old girl, identified in court documents as MV (“minor victim”), had been sending and receiving text messages on a borrowed cell phone. The cell phone’s owner notified a Prairie Village, Kan., police detective when she noticed a text conversation about a modeling photo shoot.
MV told law enforcement officers that she responded to a Craigslist advertisement for models for a photo shoot. Clarke allegedly picked her up at a park in Prairie Village on Oct. 3, 2014, and drove her to his apartment in the Northland. When they arrived at the apartment, the affidavit says, Clarke put a flash drive in his television to display photos of nude females to MV. MV described the images to law enforcement officers as “disturbing” because the women were nude and engaged in sexual activity.
Clarke allegedly took both nude and non-nude photos and videos of MV using a digital camera and digital recorder. During one of the video recordings, Clarke allegedly engaged in sexually explicit conduct with MV. According to the affidavit, investigators learned that Clarke had been advertising online for lingerie and nude modeling as far back as September 2012.
An FBI agent used the same cell phone that MV had used to contact Clarke, the affidavit says. Several text messages were exchanged in which Clarke allegedly made arrangements to meet MV again for another photo shoot. When Clarke arrived at the Prairie Village park to meet MV at about 8:45 p.m. on Wednesday, Oct. 22, 2014, he was placed under arrest.
Law enforcement officers executed a search warrant at Clarke’s residence and seized computers and computer storage devices that contained sexually explicit videos of MV.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Catherine Connelly. It was investigated by the FBI and the Prairie Village, Kan., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Justice Department Election Day ProgramRead the Press Release
United States Attorney Walt Green announced today that the United States Attorney’s Office and the local Office of the Federal Bureau of Investigation, in consultation with Justice Department Headquarters, are prepared to receive and review allegations of election fraud and voting rights abuses related to the upcoming November elections.
The Justice Department’s Election Day Program seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, altering vote tallies, submission of fraudulent votes, and voting for another person against his wishes or without his input. The law contains special protection for the rights of voters. Voters have a right to cast their own votes or to be assisted by a person of their choice. Additionally, voters have a right to vote free from acts of intimidation or harassment. For example, actions designed to intimidate or interrupt voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting, may violate federal voting rights law.
To report suspected election fraud or interference with the right to vote, members of the public can contact the United States Attorney’s Office at 225-336-8856 or 225-389-0443. Members of the public can also make such reports to the FBI at 225-291-5159. Additionally, complaints regarding possible violations of voting rights laws can be made directly to the Justice Department’s Voting Section by phone to 800-253-3931 or 202-307-2767, by fax to 202-307-3961, by email to [email protected], or on the Internet at http://www.justice.gov/crt/complaint/votintake/index/php.
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Hancock County Probate Judge Pleads Guilty to EmbezzlementRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia announced
that Marva Rice, the Probate Judge for Hancock County, entered a guilty plea on Thursday to two
counts of Theft of Federal funds from Hancock County, which receives federal funds. Rice faces
a maximum sentence of up to ten years imprisonment, a fine of up to $250,000, and up to three
years of supervised release.
Facts stipulated in the written plea agreements show the following:
The Hancock Probate Judge was responsible for collecting fines and fees and for depositing those funds into the Probate Court bank account. An investigation by the Federal Bureau of Investigation revealed that in the year 2012, Rice failed to deposit funds in the amount of $43,864.70. In 2013, after the FBI was conducting its investigation, Rice used Hancock County funds to pay for her own personal legal fees, in the amount of $20,000.
Sentencing will take place in approximately sixty days.
"Election to public office is a sign of trust by the voters and the public in the integrity and
honesty of those they choose to govern them. Theft of funds entrusted to you as an elected public
official is not only a violation of that trust but erodes the faith of the people in government and
elected officials generally. To steal further funds to defend yourself when caught is simply
reprehensible," said United States Attorney Michael J. Moore.
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: "Today's guilty
plea will begin the process of holding Hancock County Probate Judge Rice responsible for her
criminal actions involving the embezzlement of public funds. The FBI will continue to
aggressively pursue any and all allegations of similar such conduct by public officials attempting
to divert public funds to their own bank accounts."
The case was investigated by Special Agent Gregory McClendon of the Federal Bureau of
Investigation. The case was prosecuted by Assistant United States Attorney Graham Thorpe.
For additional information please contact Pamela Lightsey, Public Affairs Specialist,
United States Attorney's Office at (478) 621-2603.Guatamalan Man Charged with Illegally Being in U.S. Despite FelonyRead the Press Release
A federal indictment was filed today charging an individual with being found in the United States without permission after previously being deported, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Vicente Sica-Ixcoy, 32, a citizen of Guatemala, is named in the indictment. The indictment charges one count of being found inside the United States in the Northern District of Ohio without the express permission of the Attorney General of the United States or the Secretary for Homeland Security.
The indictment alleges that on or about September 18, 2014, the defendant was found in Dover, Ohio, having previously been deported on at least one occasion from the United States, subsequent to a conviction for the commission of an aggravated felony, namely unlawful sexual contact with a minor, in the Common Pleas Court of Tuscarawas County, Ohio.
The case is being prosecuted by Assistant United States Attorney Marisa T. Darden, following an investigation by the Department of Immigration and Customs Enforcement. If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Four Sentenced on Heroin Charges in Federal Court in BeckleyRead the Press Release
Beckley, W.Va. – United States Attorney Booth Goodwin announced today that four defendants were sentenced in federal court in Beckley on heroin charges. Douglas Edward Morris, 43, of Beckley, was sentenced to seven years in prison, and Tommy Ray Prater II, 34, of Shady Spring, West Virginia was sentenced to five years in prison. The two had pled guilty to traveling in interstate commerce to facilitate an unlawful activity, admitting that in April of 2013 they traveled to Camden, New Jersey, to obtain heroin that they later sold in the Shady Spring area. During about 10 weeks in 2013, Morris and Prater obtained about thousands of heroin stamps in New Jersey. Morris also pled guilty to a felony possession of heroin charge related to the heroin obtained in New Jersey. Morris and Prater were investigated by the West Virginia State Police Bureau of Criminal Investigations and the Federal Bureau of Investigation.
Christopher Miller, 32, of Alderson, was sentenced to ten months in prison for distribution of heroin. He pled guilty on June 25, 2014, and admitted that on August 14, 2013, he sold heroin to a confidential informant in Alderson, West Virginia. He further admitted that he sold a total of about 2.8 grams of heroin in the several transactions. Tiffany Rose Arbogast, 24, of Buckeye, was sentenced to six months in prison for distribution of heroin. She pled guilty on July 9, 2014, admitting that on December 15, 2013, she sold heroin to a confidential informant in Lewisburg. She also admitted that she was involved in distributing a total of between five and ten grams of heroin. Miller and Arbogast were investigated by the Greenbrier Valley Drug and Violent Crime Task Force as part of the Greenbrier Heroin and Pill Initiative.
The case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District. Assistant United States Attorney John File handled the prosecution of these cases.
Four Metroeast Women Indicted for Participating in Fraudulent Tax Refund SchemeRead the Press Release
Follow @SDILNewsA federal grand jury returned an eight-count indictment on October 22, 2014, charging four metro-east women with participating in a scheme to submit false claims for federal tax refunds, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Sylvia Baker, 30, from Fairview Heights and Alicia Jackson, 40, from Belleville, are charged with participating in a conspiracy to defraud the United States by making false claims for tax refunds to the Internal Revenue Service by submitting false federal income tax returns. Sylvia Baker is also charged in five additional counts of submitting false tax returns for others and is charged with making a false statement to the Internal Revenue Service when interviewed during the criminal investigation. She faces a prison sentence of up to 40 years, a fine of up to $250,000, and up to 3 years’ supervised release after serving her sentence, and mandatory restitution. Alicia Jackson is also charged in two additional counts for making false claims for federal tax refunds and faces a prison sentence of up to 20 years, a fine of up to $250,000, and up to 3 years’ supervised release after serving her sentence, as well as mandatory restitution. Lamarion Shanes, 32, from East St. Louis, is charged in two counts of making false claims for federal tax refunds and faces a prison sentence of up to 20 years, a fine of up to $250,000, and up to 3 years’ supervised release after serving her sentence, and mandatory restitution. Sylvin Baker, 58, from East St. Louis, is charged in one count of making a false claim for a federal tax refund in submitting a false federal income tax return and faces a prison sentence of up to 5 years, a fine of up to $250,000, and up to 3 years’ supervised release after serving her sentence, as well as mandatory restitution.
An indictment is a formal charge. A defendant is presumed innocent unless found guilty beyond a reasonable doubt.
The prosecution is the result of an investigation conducted by the Internal Revenue Service/Criminal Investigations. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Former Harrisburg Bank Branch Manager Sentenced for Bank LarcenyRead the Press Release
The U.S. Attorney's Office for the Middle District of Pennsylvania announced today that Sandra R. Powers, 57, Harrisburg, Pennsylvania, was sentenced to one year and one day imprisonment by Chief U.S. District Court Judge Christopher C. Conner for a bank larceny involving $125,815. Powers was ordered to surrender to the U.S. Bureau of Prisons by January 8, 2015 to commence serving her sentence.
According to U.S. Attorney Peter Smith, Powers was employed as a branch manager for Integrity Bank's Allentown Boulevard and Colonial Road branches located in Harrisburg, Pennsylvania. Powers previously pled guilty to stealing $125,815 from a customer's account between May 2012 and March 2013. Powers was terminated by Integrity Bank in March 2013 and subsequently made full restitution to the bank.
The case was investigated by the Federal Deposit Insurance Corporation Office of Inspector General, Office of Inspector General of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau and the FBI and was prosecuted by Senior Litigation Counsel Bruce Brandler for prosecution.
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Former Eastern District of Texas Prosecutor Recognized by Homeland SecurityRead the Press Release
Department of Justice
Office of Public AffairsWASHINGTON D.C. – A former deputy criminal chief has been recognized by the Secretary of Homeland Security for his work on a precedent-setting work visa case in Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Secretary of Homeland Security Jeh Charles Johnson recognized former Eastern District of Texas federal prosecutor Shamoil T. Shipchandler and his former investigative team at the DHS Secretary's Award Program on October 21, 2014, in Washington D.C. The recognition, in the form of the Secretary's Meritorious Service Award (Silver Medal), represents one of the highest awards for service granted by the Secretary of Homeland Security. The award honors exceptional individual leadership or service that is distinguished by achievements of marked significance over time to DHS, and recognizes a body of work characterized by superior performance related to significant accomplishments that significantly improved the effectiveness of DHS. In this case, the award was presented for investigating and bringing to justice an illegal visa fraud operation that resulted in the largest immigration fine to date.
In his prepared remarks to awardees, Secretary Johnson said, “It is no small task - but a great privilege - to select the best of the best for special recognition."
Shipchandler led a team consisting of HSI Supervisory Special Agent Brian Gray, DHS Special Agent Edward Koranda, DHS Auditor Christina Morales, DHS Attorney Judson Davis, and Department of State Special Agent Timothy Forte, in the investigation and settlement of claims against Infosys Corporation, an Indian company involved in consulting, technology, and outsourcing services. According to court documents, the government alleged instances of Infosys circumventing the requirements, limitations, and governmental oversight of the H-1B visa program by knowingly and unlawfully using B-1 visa holders to perform skilled labor in order to fill positions in the United States for employment that would otherwise be performed by United States citizens or require legitimate H-1B visa holders. The government also alleged that Infosys did so in order to increase profits, minimize costs of securing visas, increase flexibility of employee movement, obtain an unfair advantage over competitors and avoid tax liabilities.
The unique settlement in the case involved the payment by Infosys of $34 million, the largest payment ever levied in an immigration case. The agreement also required additional auditing for I-9 forms; a reporting requirement for B-1 usage; an agreement to continue to use only detailed invitation letters, and the continued use of corporate disciplinary processes for employees that violate the immigration laws of the United States.
“Infosys was a precedent-setting case,” said U.S. Attorney John M. Bales, “and the case was investigated and resolved in a precedent-setting district. Successful prosecutions are based on a team effort, and I am delighted that DHS has singled out the Infosys team for special recognition.”
Former Campaign Treasurer Pleads Guilty to Charges, Admits Diverting Money from Campaign's Bank AccountRead the Press Release
Hakim J. Sutton, 33, of Washington, D.C., pleaded guilty today to evading income taxes and violating campaign finance laws while working as the treasurer and custodian of records for a District of Columbia political campaign.
The guilty plea, in the U.S. District Court for the District of Columbia, was announced by U.S. Attorney Ronald C. Machen Jr., Acting Deputy Assistant Attorney General Larry J. Wszalek for the Department of Justice’s Tax Division, Chief Cathy L. Lanier of the Metropolitan Police Department (MPD) and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington Field Office.
Sutton pleaded guilty to one count of income tax evasion, a federal offense, and one count of knowingly filing a false and misleading campaign finance report, a violation of District of Columbia law. The Honorable Judge Richard J. Leon scheduled sentencing Feb. 4, 2015. Under the applicable sentencing guidelines, the parties have agreed that Sutton faces a likely range of 10 to 16 months in prison and a fine of up to $30,000 for federal income tax evasion, and a likely range of six to 24 months in prison for knowingly filing a false or misleading campaign finance report. The plea agreement also calls for Sutton to pay full restitution of $18,231 in taxes and interest to the IRS.
According to a statement of offense, signed by the defendant as well as the government, Sutton was the principal owner of the Sutton Group, which performed political consulting services in the District of Columbia and elsewhere. In 2011 and 2012, Sutton served as the treasurer and custodian of records for the campaign of Michael A. Brown, a candidate seeking re-election to an at-large seat on the District of Columbia Council. Brown ultimately lost in the November 2012 election.
Between July 2011 and May 2012, Sutton diverted approximately $115,250 from the campaign bank account to himself by depositing the funds drawn from the campaign bank account into his own personal bank accounts and converting funds drawn from the campaign bank account to cash. All told, Sutton wrote 36 checks payable to himself.
According to the statement of offense, some, but not all, of the money that Sutton diverted was compensation for Sutton’s work on the campaign. However, Sutton failed to file income tax returns for calendar years 2011 and 2012. He owes a total of $17,180 in federal income taxes for those years along with an additional $1,051 in interest.
Sutton also omitted references to the checks that he had written to himself in a series of six reports he filed in 2011 and 2012 with the District of Columbia Office of Campaign Finance.
This case was investigated by the MPD and IRS-CI. It was prosecuted by Assistant U.S. Attorney David A. Last and former Assistant U.S. Attorney Bryan Seeley of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Kenneth C. Vert of the Tax Division. Assistance was provided by Assistant U.S. Attorney Anthony Saler of the Asset Forfeiture and Money Laundering Section, Legal Assistant Angela Lawrence, Paralegal Specialist Tasha Harris, former Paralegal Specialist Nicole Wattelet and Criminal Investigator John Marsh, all of the U.S. Attorney’s Office for the District of Columbia.
Former Campaign Treasurer Pleads Guilty to Felony Charges, Admits Diverting Money from Campaign’s Bank AccountRead the Press Release
-Defendant Worked on Unsuccessful Campaign of D.C. Council Candidate-WASHINGTON - Hakim J. Sutton, 33, of Washington, D.C., pled guilty today to evading income taxes and violating campaign finance laws while working as the treasurer and custodian of records for a District of Columbia political campaign.
The guilty plea, in the U.S. District Court for the District of Columbia, was announced by U.S. Attorney Ronald C. Machen Jr.; Larry J. Wszalek, Acting Deputy Assistant Attorney General of the Department of Justice’s Tax Division; Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD), and Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI).
Sutton pled guilty to one count of income tax evasion, a federal offense, and one count of knowingly filing a false and misleading campaign finance report, a violation of District of Columbia law. The Honorable Richard J. Leon scheduled sentencing for Feb. 4, 2015. Under the applicable sentencing guidelines, the parties have agreed that Sutton faces a likely range of 10 to 16 months in prison and a fine of up to $30,000 for federal income tax evasion, and a likely range of six to 24 months in prison for knowingly filing a false or misleading campaign finance report. The plea agreement also calls for Sutton to pay full restitution of $18,231 in taxes and interest to the Internal Revenue Service.
According to a statement of offense, signed by the defendant as well as the government, Sutton was the principal owner of the Sutton Group, which performed political consulting services in the District of Columbia and elsewhere. In 2011 and 2012, Sutton served as the treasurer and custodian of records for the campaign of Michael A. Brown, a candidate seeking re-election to an at-large seat on the Council of the District of Columbia. Mr. Brown ultimately lost in the November 2012 election.
Between July 2011 and May 2012, Sutton diverted approximately $115,250 from the campaign bank account to himself by depositing the funds drawn from the campaign bank account into his own personal bank accounts, and converting funds drawn from the campaign bank account to cash. All told, Sutton wrote 36 checks payable to himself.
According to the statement of offense, some, but not all, of the money that Sutton diverted was compensation for Sutton’s work on the campaign. However, Sutton failed to file income tax returns for calendar years 2011 and 2012. He owes a total of $17,180 in federal income taxes for those years, along with an additional $1,051 in interest.
Sutton also omitted references to the checks that he had written to himself in a series of six reports he filed in 2011 and 2012 with the District of Columbia Office of Campaign Finance.
This case was investigated by the Metropolitan Police Department and the Internal Revenue Service-Criminal Investigation. It was prosecuted by Assistant U.S. Attorney David A. Last and former Assistant U.S. Attorney Bryan Seeley, of the U.S. Attorney’s Office for the District of Columbia, and Trial Attorney Kenneth C. Vert of the Justice Department’s Tax Division. Assistance was provided by Assistant U.S. Attorney Anthony Saler, of the Asset Forfeiture and Money Laundering Section, Legal Assistant Angela Lawrence, Paralegal Specialist Tasha Harris, former Paralegal Specialist Nicole Wattelet, and Criminal Investigator John Marsh, all of the U.S. Attorney’s Office for the District of Columbia.
14-238Former Boston Police Officer Charged with Making False StatementsRead the Press Release
BOSTON – A former Boston Police Officer was charged today in U.S. District Court in Boston with making false statements to the FBI relating to an investigation of the Academy Homes Street Gang (AHSG), a violent narcotics-trafficking gang that operated out of the Academy Homes housing development in Roxbury.
Mel Steele, 36, of Boston, was charged in an Information with one count of making false statements to the FBI during the course of a federal investigation. At the time, Steele was an officer with the Boston Police Department. Steele recently resigned from his position.
It is alleged that Steele, who was assigned to the Boston Police Department’s (BPD) Youth Violence Task Force (YVTF), was a long-time friend of an associate of the AHSG. During the course of joint FBI-BPD investigation of the AHSG from 2009 to 2011, Steele provided assistance to the AHSG associate. On one occasion, Steele allegedly used his BPD computer to run a license plate check on a vehicle which was later determined to be an unmarked BPD vehicle operated by a detective who was conducting surveillance on the AHSG. On another occasion Steele contacted a Massachusetts State Trooper to glean information about a gang member’s pending charges on another criminal case. In May 2011, Steele allegedly made false statements about these matters when confronted by FBI agents.
The charging statutes provide a sentence of no greater than five years in prison, three years of supervised release, and a fine of up to $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 Ortiz, Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, and Boston Police Commissioner William Evans, made the announcement today. The investigation was conducted jointly by the FBI Public Corruption Unit and the Boston Police Department Anti-Corruption Division. The case is being prosecuted by Assistant U.S. Attorney Dustin Chao of Ortiz’s Public Corruption and Special Prosecutions Unit.
Female Gang Member Sentenced for Lying to FBI During Southeast Kidnapping InvestigationRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Chason Renee Chase, a/k/a “Lady Jamaica,” a/k/a “Lady J,” age 24, of Columbia, South Carolina and Atlanta, Georgia was sentenced today in federal court to three (3) months imprisonment, which will be followed by three (3) years of supervised release. In August, Chase, who had no previous prior criminal record, plead guilty to making false statements to agents of the Federal Bureau of Investigation (FBI) during a kidnapping investigation, in violation of Title 18, United States Code, Section 1001. United States District Judge Joseph F. Anderson, Jr. rejected Chase’s request for a probation sentence, citing the serious nature of the investigation during which Chase made false statements to the FBI.
Evidence presented at the change of plea hearing established that on April 9, 2014, agents with the FBI’s Columbia Violent Gang Task Force received information that Chase was affiliated with individuals, including North Carolina prisoner and gang member Kelvin Melton, that were allegedly involved in an on-going kidnapping of a North Carolina state prosecutor’s father on April 5, 2014. When FBI agents approached Chase in Columbia and advised her of the on-going kidnapping investigation, Chase denied knowing Melton, stated that she did not recognize a photograph of Melton, denied recognizing Melton’s telephone number, denied communicating with any gang members since last year, and denied communicating with Melton. Agents confirmed through phone records that Melton and Chase had recently been in contact. In fact, after FBI agents arrested Chase and while they were interviewing her that evening, one of Chase’s cellular phones showed that Melton was frantically attempting to contact her from his jail cell in North Carolina. At this point, the kidnapping victim had not been rescued, so FBI agents immediately forwarded information and documentation seized from Chase’s residence to FBI agents in North Carolina and Georgia to aid in their attempt to rescue the victim and identify and locate the kidnapping suspects. The investigation confirmed and Chase later admitted that she was a member of the Bloods gang and that she kept their membership records and dues. The kidnapping victim was rescued in Atlanta later that night. The kidnapping investigation/prosecution is being prosecuted in the Eastern District of North Carolina.
The case was investigated by the FBI. Assistant United States Attorney Stacey Haynes of the Columbia office handled the prosecution of the case.Eritrean National Sentenced to Seven Years in PrisonRead the Press Release
For Sexually Abusing an 11-Year-Old Child
While Failing to Register as a Sex OffenderWASHINGTON – Abraham Ayele-Sium, 26, of Eritrea, has been sentenced to seven years in prison for sexually abusing an 11-year-old child and committing a crime of violence while failing to register as a sex offender, announced U.S. Attorney Ronald C. Machen Jr. and Michael Hughes, U.S. Marshal for the Superior Court of the District of Columbia.
Ayele-Sium has one prior misdemeanor conviction in California for a sex offense involving minor victims, which requires him to register as a sex offender. According to the government’s evidence, Ayele-Sium moved from California to Maryland and registered as a sex offender in Maryland in 2012. However, he then moved to the District of Columbia and did not register his new address with the District of Columbia Sex Offender Registry. While failing to register as a sex offender in the District of Columbia, Ayele-Sium then committed a new sex offense involving a child who he molested while walking her to a District store to get a snack.
Ayele-Sium pled guilty in May 2014 in U.S. District Court for the District of Columbia to one count of failure to register as a sex offender with an enhancement for committing a crime of violence while failing to register as a sex offender in violation of the Sex Offender Registration and Notification Act (SORNA). He also pled guilty to one count of second degree child sexual abuse. The plea agreement, which was contingent upon the Court’s approval, called for a seven-year prison sentence. The Honorable Emmet G. Sullivan accepted the plea agreement on Oct. 22, 2014, and sentenced Ayele-Sium accordingly. Upon completion of his prison term, Ayele-Sium is to be placed on five years of supervised release. He also is subject to deportation.
As part of an overall strategy to combat child exploitation, the U.S. Marshals Service launched a nationwide operation in 2010 to target sex offenders who violate SORNA by knowingly failing to comply with their sex offender registration requirements. SORNA is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the U.S. Marshals Service, to assist states in locating and apprehending non-compliant sex offenders.
In announcing the sentence, U.S. Attorney Machen and U.S. Marshal Hughes praised the work of the Metropolitan Police Department (MPD), as well as Senior Inspector Floriano Whitwell and other members of the D.C. Superior Court Sex Offender Investigations Section of the U.S. Marshals Service, who investigated the case. He also expressed appreciation for the assistance provided by the Metro as well as former Assistant U.S. Attorney Heide Herrmann and Assistant U.S. Attorney Sarah McClellan, who prosecuted the case.
14-237Eight Defendants Charged with Heroin and Cocaine Trafficking and Murder for HireRead the Press Release
United States Attorney James L. Santelle of the Eastern District of Wisconsin, announced that a federal grand jury recently returned an eleven-count indictment charging eight defendants with various drug-trafficking offenses, including conspiracy to distribute at least 1 kilogram or more of heroin, and charging one defendant with murder for hire. The defendants are identified as Jose Ponce de Leon (age: 29) Yandi Ponce de Leon (age: 30), Carlos Cornier-Nazario (age: 28), Louis Rodriguez-Ramirez (age: 29), Luis Rivera-Corales (age: 22), Mayra Johanna Palermo-Rodriguez (age: 29), Julio Ponce de Leon (age: 34), and Alex Cornier-Torres (age: 28). All of the defendants are residents of Milwaukee, Wisconsin. The defendants are charged in the following counts:
Count Defendant Charges Penalty1
Jose Ponce de Leon
Yandi Ponce de LeonConspiracy to distribute cocaine and more than 1 kilogram of heroin
21 U.S.C. §§ 841(a)(1), (b)(1)(A) and 846
18 U.S.C. § 2Mandatory term of 10 years imprisonment, maximum of life imprisonment and $10 million fine
Cornier-Nazario,
Palermo-Rodriguez,
Rodriguez-Ramirez,
Cornier-Torres
Rivera-Corales
Julio Ponce de LeonConspiracy to distribute heroin and cocaine
18 U.S.C. § 2
21 U.S.C. §§ 841(a)(1), (b)(1)(C) and 84620 years maximum and $1 million fine
3-7
Rivera-Corales, Yandi Ponce de Leon,
Cornier-Nazario, Jose Ponce de Leon, Rodriguez-RamirezDistribution of heroin and cocaine
18 U.S.C. § 2
21 U.S.C. §§ 841(a)(1), (b)(1)(C)20 years maximum and $1 million fine
8-10
Julio Ponce de Leon
Cornier-Torres
Palermo-RodriguezUse of the telephone to facilitate possession with intent to distribute heroin and cocaine
21 U.S.C. § 843(b)4 years maximum and $30,000 fine
11
Yandi Ponce de Leon
Murder for hire
18 U.S.C. § 2
18 U.S.C. § 195810 years maximum and $250,000 fine
This long-term investigation revealed that the defendants were involved in a drug trafficking organization lead by Jose Ponce de Leon that distributed at least 1 kilogram of heroin as well as large quantities of cocaine in and around the Milwaukee, Wisconsin area. The investigation included court-authorized interception of wire communications to and from Yandi Ponce de Leon’s telephone, which lead to the interception of wire communications regarding the murder for hire.
The defendants were charged after a long-term investigation lead by the United States Drug Enforcement Administration, in conjunction with the United States Immigration and Customs Enforcement, Homeland Security Investigations, Wisconsin Department of Justice - Division of Criminal Investigation, the Wisconsin High Intensity Drug Trafficking Area, Milwaukee Police Department, Oak Creek Police Department, Cudahy Police Department, and West Allis Police Department. This case will be prosecuted by Assistant United States Attorney Laura S. Kwaterski.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
# # # # #Dominican National Sentenced to 39 Months in Prison for Role in $65 Million Stolen Identity Income Tax Refund Fraud SchemeRead the Press Release
NEWARK, N.J. – A Dominican national who was extradited from Canada earlier this year was sentenced today to 39 months in prison for his role in one of the nation’s largest and longest-running stolen identity refund fraud schemes ever identified, U.S. Attorney Paul J. Fishman announced.
Alejandro Javier, 51, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of conspiracy to steal government funds and one count of theft of government funds. Judge Cecchi imposed the sentence today in Newark federal court.
Javier evaded capture until July 2, 2013, when Canadian law enforcement authorities arrested him as he tried to illegally enter Canada. He had been incarcerated there until he was extradited to New Jersey on Jan. 10, 2014.
According to documents filed in the case and statements made in court:Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that results in more than $2 billion in losses annually to the United States Treasury. SIRF schemes generally share a number of hallmarks:
- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico.
- SIRF perpetrators complete Form 1040 Individual Income Tax Returns using the fraudulently obtained information and falsifying wages earned, taxes withheld and other data. Perpetrators use data to make it appear that the “taxpayers” listed on the fraudulent 1040 forms are entitled to tax refunds – when in fact, the various tax withholdings indicated on the fraudulent 1040s have not been paid by the listed “taxpayers,” and no refunds are due.
- Perpetrators direct the U.S. Treasury Department to issue the refunds through checks generated by the fraudulent 1040 forms to locations they control or can access.
- With checks now in hand, SIRF perpetrators generate cash proceeds. Certain SIRF perpetrators sell refund checks at a discount to face value. In turn, the buyers then cash the checks, either themselves or using straw account holders, by cashing checks at banks or check cashing businesses or by depositing checks into bank accounts. When cashing or depositing checks, SIRF perpetrators often present false or fraudulent identification documents in the names of the “taxpayers” to whom the checks are payable.
Federal law enforcement agencies created a multi-agency task force in New Jersey composed of investigators from the IRS and the U.S. Postal Inspection Service, along with the U.S. Secret Service and with assistance from the Drug Enforcement Administration (New Jersey Task Force).
An investigation led by the New Jersey Task Force, with assistance from U.S. Immigration and Customs Enforcement, Homeland Security Investigations, revealed that from at least 2007, dozens of individuals in the New Jersey and New York area have been engaged in a large-scale, long-running SIRF scheme that caused more than 8,000 fraudulent 1040 forms to be filed, seeking more than $65 million in tax refunds, with more than $12 million in losses to the U.S. Treasury.
Javier and others obtained personal identifiers, such as dates of birth and Social Security numbers, belonging to Puerto Rican citizens. They used those identifiers to create fraudulent 1040 forms, which falsely reported wages purportedly earned by the “taxpayers” and taxes purportedly withheld, to create the appearance that the “taxpayers” were entitled to tax refunds. The returns were filed electronically. By tracing the specific IP addresses that submitted the electronically-filed 1040s, law enforcement officers learned that just a handful of IP addresses created many of the fraudulent 1040 forms that lead to the issuance of tax refund checks.
Defense Counsel: David Oakley Esq., Princeton, New Jersey
Conspirators purchased mail routes, that is, lists of addresses covered by a single mail carrier. Conspirators applied for refunds, inserted addresses along the mail route as the purported home addresses of the “taxpayers,” and obtained the refund checks sent to the addresses. They also applied for checks using addresses otherwise controlled by, or accessible by, certain conspirators and collected the checks after they were delivered to those addresses. During the course of the scheme, hundreds of refund checks were mailed to just a few different addresses in a few different towns, including Nutley, Somerset and Newark, New Jersey, and Shirley, New York.
After receiving the refund checks, Javier and others cashed the checks at check cashing institutions and divided the proceeds among the conspirators.
During the course of the investigation, members of the task force identified certain “hot spots” of activity and intercepted more than $22 million in refund checks – that had been applied for fraudulently – before they were delivered to members of the conspiracy.
In addition to the prison term, Judge Cecchi sentenced Javier to serve three years of supervised release and ordered him to pay restitution and forfeiture of $1,379,464.
U.S. Attorney Fishman praised special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; the U.S. Secret Service, under the direction of Special Agent In Charge James Mottola; and the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl Kotowski, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Lakshmi Srinivasan Herman, Zach Intrater, and Danielle Walsman of the U.S. Attorney’s Office Criminal Division in Newark, and Mala Harker of the Special Prosecutions Division.
14-385- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico.
Defendants Appear on Drug and Gun Trafficking ChargesRead the Press Release
PACER Case Reference: 14-96
GREAT FALLS - The United States Attorney's Office announced that those persons listed below have been arraigned on an Indictment in "Operation Highline Crystal Highway." If convicted of the most serious charges contained in the Indictment, each defendant faces possible penalties of life in prison, five years supervised release and $10,000,000 in fines. The investigation is a cooperative effort between the Russell Country Drug Task Force which includes law enforcement officers from the Great Falls Police Department, Cascade County Sheriff's Office, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations and the U.S. Border Patrol, as well as the Montana Division of Criminal Investigation and U.S. Internal Revenue Service.
Terry Leroy Brasda
Age: 45
Hometown: Great Falls
Charge: Conspiracy to Distribute Methamphetamine
Tyler Charles Bright-Goodsell
Age: 30
Hometown: Great Falls
Charge: Conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, possessing a firearm in furtherance of a drug trafficking crime; and possession of a stolen firearm.
Samuel Cale Chapman
Age: 33
Hometown: Havre
Charge: Conspiracy to distribute methamphetamine and conspiracy to commit money laundering.
John Edward Derry
Age: 35
Hometown: Havre
Charge: Conspiracy to distribute methamphetamine, conspiracy to possess firearms in furtherance of drug trafficking crimes, and conspiracy to commit money laundering.
William Thomas Dixon
Age: 25
Hometown: Great Falls
Charge: Conspiracy to distribute methamphetamine and distribution of methamphetamine.
Lawrence George Griner, Jr.
Age: 43
Hometown: Butte
Charge: Conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.
Jeffrey Edward June
Age: 45
Hometown: Augusta
Charge: Conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, conspiracy to possess firearms in furtherance of drug trafficking crimes, and possession of a firearm in furtherance of a drug trafficking crime.
Corey James Lampert
Age: 25
Hometown: Great Falls
Charge: Conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, distribution of methamphetamine, conspiracy to possess firearms in furtherance of drug trafficking crimes, possession of a firearm in furtherance of a drug trafficking crime, and conspiracy to commit money laundering.
Martin Edward Leland
Age: 32
Hometown: Belt
Charge: Conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, distribution of methamphetamine, conspiracy to possess firearms in furtherance of drug trafficking crimes, possession of a firearm in furtherance of a drug trafficking crime, and conspiracy to commit money laundering.
Jessica Margaret McKinlay aka Jessica Bright
Age: 26
Hometown: Great Falls
Charge: Conspiracy to distribute methamphetamine
Eduardo Ocegueda-Ruiz
Age: 30
Hometown: Los Angeles, California
Charge: Conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, conspiracy to possess firearms in furtherance of drug trafficking crimes, possession of a firearm in furtherance of a drug trafficking crime, felon in possession of a firearm, illegal alien in possession of a firearm, and illegal re-entry of a deported alien.
Joshua Alberto Rodriguez
Age: 28
Hometown: Los Angeles, California
Charge: Conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, conspiracy to possess firearms in furtherance of drug trafficking crimes, possession of a firearm in furtherance of a drug trafficking crime, and conspiracy to commit money laundering.
Megan Lynn Runstrom
Age: 31
Hometown: Great Falls
Charge: Conspiracy to distribute methamphetamine
Justin Roland Turner
Age: 32
Hometown: Havre
Charge: Conspiracy to distribute methamphetamine, conspiracy to possess firearms in furtherance of drug trafficking crimes, and conspiracy to commit money laundering.
Katie Leann Wagner
Age: 27
Hometown: Great Falls
Charge: Conspiracy to distribute methamphetamine
Michelle Renee Yallup
Age: 30
Hometown: Great Falls
Charge: Conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, distribution of methamphetamine, conspiracy to possess firearms in furtherance of drug trafficking crimes, possession of a firearm in furtherance of a drug trafficking crime, and conspiracy to commit money laundering.
Sarah Jane Young
Age: 35
Hometown: Great Falls
Charge: Conspiracy to distribute methamphetamine and conspiracy to possess firearms in furtherance of drug trafficking crimes.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
@USAO_MT
Convicted Sex Offender Sentenced to Twenty Years on Federal ChargesDefendant Also Sentenced to State Aggravated Rape Charges in Middlesex CountyRead the Press Release
BOSTON – A previously convicted Level II sex offender was sentenced today in U.S. District Court in Boston for transportation and possession of child pornography.
George Shipps, 32, of Chelsea, was sentenced today by U.S. District Court Judge Nathaniel M. Gorton to 20 years in prison. In May 2014, Shipps pleaded guilty to transportation and possession of child pornography. Under the terms of the plea agreement, Shipps also pleaded guilty on Oct. 20, 2014 to one count of aggravated child rape in Middlesex Superior Court and was sentenced to 10 years in state prison, to be served concurrently with the federal sentence. Shipps, a Level II registered sex offender based upon a 2006 state conviction for child pornography and enticement offenses, was on state court probation when he committed the federal offenses.
Shipps was sentenced on state charges for the sexual assault of a six-year-old girl in September 2012. The abuse was captured in photographs later recovered by the FBI.
While conducting an international investigation, federal law enforcement agents discovered that Shipps was sending and receiving child pornography via email. In February 2013, a search warrant executed at Shipps’ residence recovered a laptop computer, a compact disk, and a cell phone that had all been smashed to pieces. Forensic examination of those devices revealed 100 images of child pornography and child erotica, all of which had been deleted or were found in temporary internet history.
During the execution of the search warrant, Shipps admitted that he took sexually explicit photographs of three children, ages four, five, and six, on separate occasions and distributed those images.United States Attorney Carmen M. Ortiz, Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, and Middlesex District Attorney Marian T. Ryan made the announcement today. District Attorney Ryan thanked FBI investigators and Massachusetts State Police detectives for their cooperative efforts in this case.
The federal case is being prosecuted by Assistant U.S. Attorney Stacy Dawson Belf of Ortiz’s Cyber Crimes Unit and the Middlesex case is being prosecuted by Assistant District Attorney Katharine Folger.The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys= Offices and the Criminal Division=s CEOS, 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.projectsafechildhood.gov/.
Clinton Man Sentenced for Bank RobberyRead the Press Release
DAVENPORT, IA – On October 22, 2014, Shane Roger Hoiland, age 22, formerly of Clinton, Iowa, was sentenced by United States District Judge John A. Jarvey to 48 months in prison for bank robbery, announced United States Attorney Nicholas A. Klinefeldt. Hoiland was ordered to serve three years supervised release following imprisonment, and to pay $100 towards the Crime Victims Fund. Hoiland was also ordered to pay restitution to the Clinton National Bank for an amount that included the funds taken by Hoiland during the robbery.
Just prior to noon on February 25, 2013, Hoiland entered the Lyons branch of the Clinton National Bank in Clinton, Iowa. He approached a teller and handed her a note demanding money. The teller placed all of the cash from her drawer in a paper bag, handed it to Hoiland, and he took the money from the teller and left the bank. At the time of the robbery the deposits of the Clinton National Bank were insured by the Federal Deposit Insurance Corporation (FDIC).
This case was investigated by the Federal Bureau of Investigation, and the Clinton, Iowa, Police Department, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release)
Chicago Man Indicted for Making Bomb and Violence Threats Against Southern Illinois UniversityRead the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Derrick Dawon Burns, 21, of Chicago, Illinois, was indicted by a federal grand jury on October 22, 2014, on four federal charges stemming from a series of bomb and violence threats directed toward Southern Illinois University in Carbondale (SIUC) students, faculty, and staff on October 10, 2012, October 15, 2012, December 6, 2012, and October 1, 2013. The four federal charges of Willfully Making a Bomb Threat each carry maximum penalties of ten years in federal prison, three years supervised release, a $250,000 fine and a $100 special assessment.
Culminating a two year investigation, authorities arrested Burns in Chicago on September 29, 2014. The United States District Court for the Southern District of Illinois in Benton ordered Burns held without bond pending his trial date (which date will be set by the Court in the near future).
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The return of an indictment by the grand jury is the product of an investigation on the part of the SIUC Department of Public Safety, the Federal Bureau of Investigation, and the United States Postal Inspection Service. Assistance was provided by the Carbondale Police Department, the Illinois Secretary of State Bomb Squad, the Jackson County Sheriff’s Department, and the Illinois State Police. The case is being prosecuted by Special Assistant U.S. Attorney John C. Constance and Assistant U.S. Attorney Liam Coonan.
Charleston Heroin Dealer Sentenced in Federal CourtRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced that Ricky Williams, 23, of Charleston, was sentenced today in federal court in Charleston, to four months in federal prison. Williams plead guilty on August 4, 2014, to the distribution of heroin.
Williams admitted that on September 17, 2013, he sold heroin to a confidential informant working with the Metropolitan Drug Enforcement Network Team (MDENT) for $100.00. Williams also admitted that he sold heroin to the same informant on September 25, 2013, and on October 28, 2013.
This case was investigated by the MDENT. This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Caldwell Nightclub Owner Sentenced for Tax EvasionRead the Press Release
BOISE - Herminio Harro Sandoval, 60, of Caldwell, Idaho, was sentenced yesterday to 46 months in prison for conspiracy to attempt to evade and defeat tax, U.S. Attorney Wendy J. Olson announced. United States District Judge Edward J. Lodge also ordered Sandoval to serve three years of supervised release following his prison sentence. He pleaded guilty on August 12, 2014.
According to court documents, Sandoval, over the past two decades, owned and operated various nightclubs in Canyon County, including El Tio Ponchos, Salon El Sureno, Fuego II, Blue Eye Club, Pachanga Nightclub, Club Fuego and La Copa. Sandoval admitted that beginning in 1998, and continuing to 2012, he conspired to fail to report $750,000 in income. At sentencing, Judge Lodge found that Sandoval derived much of his unreported income from illegal outdoor marijuana grows on public lands, methamphetamine and cocaine trafficking, prostitution, and an illegal check cashing business. As part of his plea agreement, Sandoval agreed to civilly forfeit real property, bank accounts, a vehicle, and U.S. currency and coins, totaling approximately $315,335. Additionally, Sandoval agreed to a tax assessment of at least $210,000 to the Internal Revenue Service.
The case was investigated by the Internal Revenue Service-Criminal Investigations, the Drug Enforcement Administration, Idaho State Police, Bureau of Alcohol, Tobacco, Firearms and Explosives, Canyon County Sheriff’s Office, Nampa Police Department, and the Washington County Sheriff’s Department.
Bulgarian National Sentenced to 30 Months in Prison for Role in Largest Identity Theft Ring of Its TimeRead the Press Release
NEWARK, N.J. - A Bulgarian national was sentenced today to 30 months in prison for his participation in the Shadowcrew forum, an online marketplace for hacking and identity theft that was the largest of its kind when dismantled by the Department of Justice and the U.S. Secret Service in 2004, U.S. Attorney Paul J. Fishman announced.
Aleksi Kolarov, 32, previously pleaded guilty before U.S. District Judge William J. Martini to Count One of an indictment charging him with conspiracy to commit both identity theft and access device fraud. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Kolarov evaded capture until June 14, 2011, when Paraguayan law enforcement authorities arrested him at a hotel in Asunción, Paraguay. He was found in possession of hundreds of thousands of dollars in various currencies, counterfeit payment cards and electronic implements to re-encode cards. Prior to his extradition, he had been incarcerated by Paraguayan authorities relating to that conduct. Kolarov was extradited and arrived in the United States on June 28, 2013, escorted by U.S. Marshals.
Shadowcrew.com was an illegal online marketplace that trafficked in at least 1.5 million stolen credit and bank card numbers and caused more than $4 million in losses to the institutions issuing the cards.
Kolarov, along with the other 18 individuals charged in the indictment, participated in the international conspiracy to operate the Shadowcrew site. As part of the organization, Kolarov served as a vendor, using the site to sell illicit merchandise and services to other members. At one time, Shadowcrew.com had approximately 4,000 members dedicated to facilitating malicious computer hacking and the dissemination of stolen credit card, debit card and bank account numbers and counterfeit identification documents, such as drivers’ licenses, passports and Social Security cards. The conspiracy to commit this activity, often referred to as “carding,” facilitated the use of account numbers and counterfeit identity documents to steal identities and defraud banks and retailers. Of the 19 international participants charged in the indictment, three remain at large.
U.S. Attorney Fishman credited the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola, with the investigation leading to the charges. He also thanked the Computer Crime and Intellectual Property Section and Office of International Affairs in the Department of Justice’s Criminal Division and thanked the U.S. Marshals Service for facilitating the extradition. U.S. Attorney Fishman also praised the Paraguayan authorities for their vital role.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the Computer Hacking and Intellectual Property Section of the Economic Crimes Unit in Newark.
14-384Defense counsel: Michael Koribanics Esq., Clifton, N.J.
Buffalo Woman Sentenced for Marriage FraudRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Pauline Gichuri, 40, a Buffalo, NY resident and native and citizen of Kenya, who was convicted of conspiring to commit marriage fraud, was sentenced to one year probation by U.S. District Court Judge Richard J. Arcara.
Assistant U.S. Attorney John E. Rogowski, who handled the case, stated that the defendant agreed to pay a United States citizen $5000 to enter into a sham marriage to allow Gichuri to remain in the United States. The defendant planned to apply for naturalization as a United States citizen. The sham marriage took place in Buffalo in 2004 and Gichuri was naturalized in 2010. Because citizenship was obtained by fraud, the defendant may be subjected to de-naturalization and removal from the United States.
The sentencing is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.Baltimore Drug Ring Leader Sentenced to 19 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Leonard Benjamin, age 30, of Bowie, Maryland today to 19 years in prison followed by five years of supervised release for conspiring to distribute a kilogram or more of heroin. Judge Bennett also entered an order that Benjamin forfeit $39,387 seized on February 7, 2014.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Baltimore City State’s Attorney Gregg L. Bernstein; Baltimore Police Commissioner Anthony W. Batts; and Colonel Marcus L. Brown, Superintendent of the Maryland State Police.
According to his plea agreement, from no later than 2013, Benjamin was an organizer and leader of a conspiracy to distribute heroin in the Baltimore area. Benjamin had others operate stash houses for him in the Baltimore area. Benjamin planned trips to New York City to buy heroin. Benjamin gave the heroin to couriers in New York who drove the heroin back to Baltimore.For example, on October 20, 2013, Benjamin arranged with a courier to drive to New York, where Benjamin planned to acquire heroin. Law enforcement agents saw Benjamin provide heroin to the courier in New York. The courier then left New York and returned to Maryland.
The Maryland State Police, in conjunction with the DEA investigation, stopped the courier in Cecil County, Maryland on the return trip. MSP troopers searched the courier’s vehicle and seized more than 400 grams of heroin.Thereafter, Benjamin continued to engage in drug-trafficking activities. Investigators overheard Benjamin regularly make drug deals by phone; arrange new supplies of heroin; and instruct others to receive, store or distribute heroin to customers. Benjamin made several calls to a co-conspirator who operated a stash house location at Benjamin’s direction.
On February 7, 2014, investigators executed a search warrant at one of the stash houses and recovered more than 600 grams of heroin. During a search of other locations, investigators seized cash, including $39,387 from Benjamin’s home.
United States Attorney Rod J. Rosenstein praised the DEA, Baltimore City State’s Attorney’s Office Major Investigation Unit, Baltimore Police Department, and Maryland State Police for their work in the investigation, and recognized the Cecil County State’s Attorney’s Office for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Michael C. Hanlon, who prosecuted the case.Attorney Pleads Guilty in Connection with Rothstein CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that David Boden, 53, of Ft. Lauderdale, pled guilty today in West Palm Beach before U.S. Magistrate Judge William Matthewman to conspiracy to commit wire fraud in connection with the operation of the former Fort Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA). In 2009, it was discovered that RRA was being utilized by its Chairman and Chief Executive Officer, Scott W. Rothstein, to commit a massive Ponzi scheme stemming from the sale of fictitious confidential settlements. At his sentencing, scheduled for January 9, 2015, before U.S. District Judge Kenneth A. Marra, the defendant faces a maximum five years imprisonment.
In connection with his guilty plea, Boden, who was an attorney with the now defunct RRA law firm, admitted that he cooperated with co-defendant Richard L. Pearson, who agreed to act as a broker for Rothstein’s settlements. Pearson would receive a sales commission from Rothstein derived from the money paid by the investor, and would pay a portion of that sales commission to Boden for his assistance in the sale of these settlements. Beginning in September 2009, a group of investors (hereinafter referred to as “the Investor Group”) began investing in the confidential settlement agreements following a meeting with Rothstein. Boden and Pearson agreed that the Investor Group would pay a sales commission directly to Pearson. The Investor Group was not informed by Boden or Pearson that they were also receiving an additional undisclosed sales commission from the money paid by the Investor Group to Rothstein. The defendant further admitted that, through material misstatements and omissions made to the Investor Group, Pearson and Boden caused the Investor Group to incur a loss of approximately $2,400,000.
Mr. Ferrer commended the investigative efforts of the IRS-CI and the FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
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.
Albuquerque Man Sentenced to Eight Years in Federal Prison for Unlawful Possession of a FirearmRead the Press Release
ALBUQUERQUE – James Casaus, 32, of Albuquerque, N.M., was sentenced today to 96 months in federal prison for violating the federal firearms laws. Casaus will be on supervised release for three years after completing his term of incarceration.
Casaus was arrested in Nov. 2012, on an indictment charging him with being a felon in possession of a firearm. The indictment alleged that Casaus unlawfully possessed a firearm and ammunition on July 7, 2012, in Bernalillo County, N.M. At the time, Casaus was prohibited from possessing firearms or ammunition because he previously had been convicted of numerous felony offenses in the 2nd and 4th Fourth Judicial District Courts for the State of New Mexico. Casaus’ prior convictions included convictions for the unlawful taking of a motor vehicle, distribution of a controlled substance, conspiracy to commit kidnapping, possession of a firearm by a felon, possession of a controlled substance with intent to distribute, and conspiracy to possess a controlled substance.
On Aug. 21, 2013, Casaus entered a guilty plea to the indictment and admitted possessing a pistol and ammunition on July 7, 2012, despite his status as a convicted felon. The guilty plea was entered without the benefit of a plea agreement.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Albuquerque Police Department and the Bernalillo County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Louis E. Valencia.
The case was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.