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5 December 2014
Former Apple Executive Sentenced to One Year in Prison for Defrauding Apple in Kickback Scheme and Laundering the Proceeds of the FraudRead the Press Release
SAN JOSE – Paul S. Devine was sentenced on Dec. 1, 2014, to 12 months and one day in prison, and ordered to pay $4,464,664 in restitution for wire fraud, conspiracy, money laundering, and engaging in transactions in criminally-derived property, announced United States Attorney Melinda Haag, FBI Special Agent in Charge David J. Johnson, and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Thomas McMahon.
According to the plea agreement, Devine admitted that, beginning in approximately February 2007, he engaged in a scheme to defraud Apple of money or property as well as to defraud Apple of its right to his honest services. He also admitted to engaging in a conspiracy with co-defendant Andrew Ang in which they agreed to the fraud against Apple.
Devine had been a Global Supply Manager at Apple from 2005 until he was terminated at the time of his arrest in August 2010. Devine’s job gave him access to confidential internal Apple information. In the course of the scheme, Devine transmitted confidential information, such as product forecasts, pricing targets, and product specifications, to suppliers and manufacturers of Apple parts, including Ang. Ang worked for several Apple suppliers located in Singapore. In return, the suppliers and manufacturers paid Devine kickbacks, including payments determined as a percentage of their Apple contracts. Devine shared the kickbacks with Ang.
In his plea agreement, Devine acknowledged that this scheme deprived Apple of its property right in the confidentiality of its information, its money, and its property, as well as its right to his honest services. The scheme enabled the suppliers and manufacturers to, among other things, negotiate more favorable contracts with Apple than they would have been able to obtain without the confidential information.
Devine admitted to receiving kickbacks as wire transfers into bank accounts that he opened for that purpose in the U.S. and South Korea, including accounts in the name of a shell corporation, “CPK Engineering.”
Devine also admitted that he knowingly transferred the proceeds of the wire fraud between his various accounts, including CPK Engineering accounts, in order to conceal and disguise the nature, location, source, ownership, and control of the proceeds. He specifically admitted to a May 18, 2010, transfer of $536,748.88 in funds derived from the wire fraud scheme.
Devine agreed that the loss attributable to the fraudulent scheme was approximately $2,409,000, which represented the amount he received in kickback payments. He agreed to forfeit $951,552 in proceeds of the fraud and a vehicle, all of which were seized by the FBI and IRS at the time of his arrest. Devine also agreed to forfeit $612,407 in proceeds of the fraud, which he transferred from overseas bank accounts and deposited with the clerk of the District Court following his arrest.
Devine, 41, of Sunnyvale, was indicted by a federal grand jury on Aug. 11, 2014. The indictment charged him with twenty-three counts related to engaging in the wire fraud scheme, conspiring to commit wire fraud with Andrew Ang, laundering the proceeds of the scheme, and engaging in transactions in funds derived from the scheme.
In a related case, Chua Kim Guan (a/k/a Jacky Chua), an executive at Jin Li Mould of Singapore, was charged by Singaporean authorities with corruptly giving gratifications to Devine. The U.S. indictment against Devine’s co-defendant, Andrew Ang, remain pending.
Devine pleaded guilty on Feb. 28, 2011, to one count of violating of 18 U.S.C. § 1343 (wire fraud), one count of violating 18 U.S.C. § 1349 (conspiracy to commit wire fraud), one count of violating 18 U.S.C. § 1956(a)(1)(B) (money laundering), and one count of violating 18 U.S.C. § 1957 (engaging in transactions with criminally-derived property).
Devine’s sentence was handed down by the Honorable Edward J. Davila, United States District Court Judge. Judge Davila also sentenced Devine to a three-year period of supervised release. Devine will begin serving the sentence on Feb. 19, 2015.
Michelle J. Kane is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Melissa Dorton and Elise Etter. The prosecution is the result of an investigation by the FBI and the IRS, Criminal Investigation.
Edmond Pharmacy to Pay $43,000 to Settle Claims Involving Violations of the Controlled Substances ActRead the Press Release
Oklahoma City, Oklahoma – SHERRY’S DRUG, which operates a retail pharmacy in Edmond, Oklahoma, has paid $43,000 in civil penalties to the United States to settle claims stemming from alleged violations of the Controlled Substances Act, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
The Controlled Substances Act, 21 U.S.C. Sections 801 et seq. ("CSA"), was passed by Congress to combat the illegal distribution and abuse of controlled substances, including prescription medications. The CSA is enforced by the Drug Enforcement Administration's (DEA) Office of Diversion Control, whose mission is to prevent, detect, and investigate the diversion of controlled pharmaceuticals and listed chemicals from legitimate sources while ensuring an adequate and uninterrupted supply for legitimate medical, commercial, and scientific needs. Under the CSA, entities registered with the DEA who purchase, distribute, dispense, transfer, or sell controlled substances must comply with inventory and documentation requirements. Regulations promulgated under the CSA require that each DEA registrant, including pharmacies, maintain complete and accurate records of each substance manufactured, received, sold, delivered, dispensed or otherwise disposed of by the registrant for two years. These requirements play a vital role in ensuring the appropriate handling, accounting, and distribution of controlled substances.
Sherry’s Drug ("Sherry’s") is an Oklahoma corporation with its primary business located in Edmond, Oklahoma. The United States alleged that between February 3, 2010, and January 6, 2014, Sherry’s improperly filled prescriptions for controlled substances that did not contain the prescriber’s DEA number, substituted Sherry’s DEA registration number for the prescriber’s DEA number, and filled prescriptions for controlled substances under a non-valid DEA registration number.
In order to resolve the claims by the United States, Sherry’s paid $43,000 in civil penalties to the government. In reaching this settlement, Sherry’s did not admit liability and the government did not make any concession regarding the legitimacy of its claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the Drug Enforcement Administration's Office of Diversion Control, Oklahoma City District Office Diversion Group, and was prosecuted by Assistant United States Attorney Ronald R. Gallegos.
- Edcouch Woman Pleads Guilty to Enticing
Dandridge Moonshiner James Carrol Hickman ConvictedRead the Press Release
GREENEVILLE, Tenn. – James Carrol Hickman, 41, of Dandridge, Tenn., was convicted of aiding and abetting in the illegal production of distilled spirits by a person who was not an authorized distiller (illegal production of “moonshine”). Hickman was convicted on Dec. 5, 2014, following a two-day jury trial, and is scheduled for sentencing on Mar. 17, 2015. He faces a possible sentence of up to five years in federal prison and up to $10,000 in fines.
Evidence presented at trial showed Hickman worked for co-defendant Jack Mayfield, Jr., at a large-scale illegal moonshine production operation in the Carson Springs area of Cocke County, Tenn. Hickman’s role at the operation included transporting supplies and distributing moonshine. According to the testimony of a TBI agent, Hickman also admitted that he “cooked” moonshine. Testimony from an additional witness also demonstrated that Hickman was involved in the production of moonshine. The evidence further showed that the operation consisted of 18 stills, each with a capacity of 400 gallons.
Two others have already been convicted in this case and are awaiting sentencing. Michael Steve Reece was convicted on Nov. 7, 2013, and is scheduled for sentencing on Mar. 10, 2015. Jack Mayfield, Jr., was convicted on Oct. 9, 2014, and is scheduled for sentencing on Feb. 12, 2015.
This investigation was a joint effort of the Tennessee Bureau of Investigation, Tennessee Alcoholic Beverage Commission, Tennessee Highway Patrol, and Cocke County Sheriff’s Department. Assistant U.S. Attorneys Suzanne Kerney-Quillen and J. Christian Lampe represent the United States.
Child Sex Trafficker Sentenced to 17.5 Years in Federal PrisonRead the Press Release
(Saipan, MP), ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that ANNETTE NAKATSUKASA BASA, was sentenced today, December 5, 2014, in the U.S. District Court of the Northern Mariana Islands by Chief Judge Ramona V. Manglona, for sex trafficking of children. Defendant BASA received a sentence of 17.5 years incarceration with credit for time served, five years supervised release upon release from prison, 500 hours of community service, $100 special assessment fee and was ordered to pay restitution in the amount of $9,102.39. She was further ordered to undergo a mental health assessment and receive any corresponding treatment that may be appropriate while in the Bureau of Prisons custody. Defendant Basa is not to unlawfully use controlled substances or alcohol. Basa will also have to register as a sex offender under the SORNA program.
Defendant BASA pled guilty on February 20, 2014, to one count of sex trafficking of children, in violation of Title 18 U.S.C. Section 1591(a)(1). Defendant BASA took in minor runaways, allowed them to live with her, gave them methamphetamine and then demanded they perform sexual acts for money.
U.S. Attorney Limtiaco stated, “The sexual exploitation and abuse of vulnerable individuals is an affront to fundamental human rights and will not be tolerated. The defendant preyed on these young victims, manipulating and sexually exploiting them. Today’s sentence sends the critical message that human trafficking is a crime that violates the very core and dignity of a human being and traffickers face severe punishment. The Department of Justice and U.S. Attorney’s Office remain committed to vigorously prosecuting and holding accountable those who perpetrate these heinous crimes."
U.S. Attorney Limtiaco additionally reminds defendants who have committed sexual abuse of children, that under federal and local law, all sex offenders have a duty to register and keep their registration current with the Sex Offender Registry in their jurisdiction. Sex offenders who travel to the CNMI and who reside in the CNMI must inform the CNMI DPS Sex Offender Registry where they reside, work, or attend school - they must also periodically update their registration information. The U.S. Attorney notes that the sex offender registry was created in order to protect the public by protecting victims, preventing further victimization and informing the public of the whereabouts of sex offenders. CNMI’s Sex Offender Registry can be found online at http://cnmi.nsopw.gov/.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood (PSC) Initiative, a nationwide commitment to aggressively prosecute defendants who engage in the sexual victimization of children and adults, possess or receive child pornography, and sex offenders who fail to register with the jurisdiction’s Sex Offender Registry. The investigation was conducted by the Federal Bureau of Investigations. The case was handled by Assistant U.S. Attorneys Rami Badawy and Ross Naughton.
Chelsea Man Indicted on Child Exploitation ChargesRead the Press Release
BOSTON – Elmer Reyes, 32, of Chelsea, was indicted yesterday on charges that he sexually exploited a child. A federal grand jury handed down a two count indictment charging Reyes with producing a pornographic image of a child and possession of child pornography. The indictment alleges that the conduct occurred on October 1, 2014.
The charging statutes provide a mandatory minimum sentence of 15 years and a maximum sentence of 30 years in prison on the child exploitation charge, and no greater than 10 years in prison on the possession of child pornography charge. The charging statutes also provide a mandatory minimum of five years and a maximum of a lifetime of supervised release, and a fine of $250,000 on each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, made the announcement. The case was investigated by the Chelsea Police Department and the Federal Bureau of Investigation’s Boston Child Exploitation Task Force, which is comprised of members from the FBI, the Arlington, Boston, and Malden Police Departments, the Massachusetts State Police, and Department of Correction. The case is being prosecuted by Eve A. Piemonte Stacey and David G. Tobin of Ortiz’s Major Crimes Unit.
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/.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Centralia Resident Charged in Federal Court for Burglarizing Gun Dealer and Attempting to Sell 39 Stolen FirearmsRead the Press Release
Follow @SDILNewsA Centralia resident was charged in federal district court on December 3, 2014, for burglarizing a federal firearms licensee and attempting to sell the guns, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Dakota R. Moss, 19, was charged in a criminal complaint which alleged that Ferguson, Missouri was a potential destination for the cache of weapons, which included semi-automatic handguns and AR-15 assault rifles.
The complaint affidavit stated that on November 29, 2014, the Buchheit of Centralia farm and home supply store was burglarized and thirty nine (39) firearms were stolen, along with at least one thousand rounds of ammunition. The burglary was accomplished using a full size pickup truck, which was stolen from Centraila High School. The suspects utilized the stolen truck to ram the locked security gate to make entry onto Buchheit’s parking lot, where the suspects then broke out store windows to make entry into the store. The surveillance video established that the initial burglary occurred at approximately 2:40 am. However, the video evidence revealed that the two suspects left the scene and returned to steal additional firearms and ammunition on two occasions - thereby making a total of three separate entries into the store between 2:40 am and 4:00 am.
Evidence filed in court established that Moss and his juvenile accomplice were armed while inside of Buchheit’s and intended to shoot anyone who interrupted the burglary – including police. The complaint alleges that Moss and his accomplice stole the firearms in order to sell the guns; and that Ferguson, Missouri was among the planned destinations for the weapons. The charges also state that the two planned on participating in the looting of businesses in the Ferguson, Missouri area, however the plan did not materialize. Centralia Police and agents from the ATF identified the suspects soon after the burglary and have recovered 35 of the 39 stolen guns as of this date. Anyone with knowledge of the remaining stolen firearms or the ammunition is encouraged to call law enforcement.
US Attorney Stephen R. Wigginton said, “I commend the members of law enforcement who quickly and professionally interrupted this incredibly dangerous crime before lives were lost. Firearms trafficking is always a very serious crime. But, it is even worse that these two considered profiteering from the lawlessness in Ferguson by planning to sell arms to rioters and looters.”
The complaint charges Moss with stealing firearms from a federal firearms licensee, possession of stolen firearms, being a felon in possession of firearms, and with carry and use of a firearm during a crime of violence. The first three charges are all punishable by not more than 10 years in federal prison, a $250,000 fine, and not more than 5 years supervised release. Carry and use of a firearm during a crime of violence carries an additional mandatory consecutive sentence of not less than 5 years. However, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing. Moss will be arraigned in US District Court on December 10, 2014.
The investigation is being conducted by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Centralia Police Department. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
A complaint is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
Cedar Rapids Businesses and Corporate Officers IndicatedRead the Press Release
Midamar Corporation and Islamic Services of America, of Cedar Rapids, Iowa, and corporate officers of the businesses, Jalel Aossey, age 40, and William “Yahya” Aossey, age 44, also of Cedar Rapids, Iowa, have been charged in a ninety-two count indictment filed this afternoon in United States District Court in Cedar Rapids. The indictment charges each business and person with one count of conspiracy to: make and use materially false statements and documents; sell misbranded meat; and commit wire fraud. The indictment also charges each defendant with three counts of making false statements on export applications; forty-three counts of wire fraud; forty-four counts of money laundering; and one count of conspiring to commit money laundering. The indictment also contains two forfeiture allegations, seeking proceeds and property involved in certain offenses.
The conspiracy charge is punishable by up to five years imprisonment. Each count of making a false statement on an export application is punishable by up to three years imprisonment. Each count of wire fraud is punishable by up to twenty years imprisonment. Each count of money laundering, including the money laundering conspiracy count, is punishable by up to twenty years imprisonment. A fine of up to $250,000 may also be imposed on each count, along with a term of supervised release following any imprisonment.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by the Department of Agriculture Office of Inspector General, and the Internal Revenue Service.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-00138-LRR.
Attorney Sentenced to 17 Years in Prison for Multi-Million Dollar Stock FraudRead the Press Release
A California attorney was sentenced to serve 17 years in prison today in the Southern District of Florida for operating a five-year, multi-million dollar market manipulation and fraud scheme, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.
Mitchell J. Stein, 53, of Hidden Hills, California, was convicted by a jury on May 20, 2013, of conspiracy to commit mail and wire fraud, three counts of wire fraud, three counts of securities fraud, three counts of money laundering, and one count of conspiracy to obstruct justice. In addition to the prison sentence, U.S. District Judge Kenneth A. Marra of the Southern District of Florida ordered Stein to forfeit $5.3 million. Restitution will be determined at a later date.
“Lawyers for companies are supposed to guide their clients through the important reporting and regulatory requirements that ensure the integrity of our financial markets,” said Assistant Attorney General Caldwell. “Stein abdicated his responsibility, and instead abused his position of trust to defraud a public company, its shareholders, and the investing public of millions of dollars.”
“The ‘pump and dump’ scheme orchestrated by Stein and his co-conspirators was extremely elaborate,” said U.S. Attorney Ferrer. “In an effort to conceal his fraudulent financial scheme, Stein falsely testified before the SEC and used his position of trust to arrange for others to do the same. The sentencing announced today underscores the department's commitment to hold liable those individuals who profit from manipulating the financial markets and violating securities and other laws that are intended to protect investors and markets.”
According to evidence presented at trial, Stein’s wife held a controlling majority interest in Signalife Inc., a publicly-traded company currently known as Heart Tronics that purportedly sold electronic heart monitoring devices. While acting as Signalife’s outside legal counsel, Stein engaged in a scheme to artificially inflate the price of Signalife stock by creating the false impression of sales activity at the company. Specifically, the evidence at trial showed that Stein and his co-conspirators created fake purchase orders and related documents from fictitious customers, then caused Signalife to issue press releases and file documents with the Securities and Exchange Commission (SEC) trumpeting these fictitious sales. Evidence at trial also proved that in a further effort to create the false appearance of sales activity, Stein arranged to have Signalife products shipped to and temporarily stored with an individual who had not purchased any products.
Evidence at trial further proved that Stein disguised his selling of Signalife stock at artificially inflated prices by placing shares in purportedly blind trusts, and having a co-conspirator sell the shares after Stein caused the false sales information to be disseminated to the public. Stein also caused Signalife to issue shares to third parties so that those third parties could sell the shares and remit the proceeds to Stein. From one co-conspirator alone, Stein received illicit gains of over $1.8 million from those sales.
In addition, evidence at trial proved that Stein conspired to obstruct the SEC investigation into Heart Tronics by testifying falsely and arranging for others to testify falsely in an effort to conceal the fraud scheme.
This case was investigated by the U.S. Postal Inspection Service, with assistance from the Office of the Special Inspector General for the Troubled Asset Relief Program. The SEC referred this matter to the Justice Department, conducted a parallel investigation resulting in a civil enforcement action against Stein and others, and provided substantial assistance in this investigation. The Financial Industry Regulatory Authority’s Criminal Prosecution Assistance Group likewise provided substantial assistance in this matter.
This case was prosecuted by Assistant Chief Albert B. Stieglitz Jr., Assistant Chief Kevin B. Muhlendorf, and Trial Attorney Andrew H. Warren of the Criminal Division’s Fraud Section and Assistant Chief Darrin McCullough of the Criminal Division’s Asset Forfeiture and Money Laundering Section.
Attorney Sentenced to 17 Years in Prison for Multi-Million Dollar Stock FraudRead the Press Release
A California attorney was sentenced to serve 17 years in prison today in the Southern District of Florida for operating a five-year, multi-million dollar market manipulation and fraud scheme, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.
Mitchell J. Stein, 53, of Hidden Hills, California, was convicted by a jury on May 20, 2013, of conspiracy to commit mail and wire fraud, three counts of wire fraud, three counts of securities fraud, three counts of money laundering, and one count of conspiracy to obstruct justice. In addition to the prison sentence, U.S. District Judge Kenneth A. Marra of the Southern District of Florida ordered Stein to forfeit $5.3 million. Restitution will be determined at a later date.
“The ‘pump and dump’ scheme orchestrated by Stein and his co-conspirators was extremely elaborate,” said U.S. Attorney Ferrer. “In an effort to conceal his fraudulent financial scheme, Stein falsely testified before the SEC and used his position of trust to arrange for others to do the same. The sentencing announced today underscores the department's commitment to hold liable those individuals who profit from manipulating the financial markets and violating securities and other laws that are intended to protect investors and markets.”
“Lawyers for companies are supposed to guide their clients through the important reporting and regulatory requirements that ensure the integrity of our financial markets,” said Assistant Attorney General Caldwell. “Stein abdicated his responsibility, and instead abused his position of trust to defraud a public company, its shareholders, and the investing public of millions of dollars.”
According to evidence presented at trial, Stein’s wife held a controlling majority interest in Signalife Inc., a publicly-traded company currently known as Heart Tronics that purportedly sold electronic heart monitoring devices. While acting as Signalife’s outside legal counsel, Stein engaged in a scheme to artificially inflate the price of Signalife stock by creating the false impression of sales activity at the company. Specifically, the evidence at trial showed that Stein and his co-conspirators created fake purchase orders and related documents from fictitious customers, then caused Signalife to issue press releases and file documents with the Securities and Exchange Commission (SEC) trumpeting these fictitious sales. Evidence at trial also proved that in a further effort to create the false appearance of sales activity, Stein arranged to have Signalife products shipped to and temporarily stored with an individual who had not purchased any products.
Evidence at trial further proved that Stein disguised his selling of Signalife stock at artificially inflated prices by placing shares in purportedly blind trusts, and having a co-conspirator sell the shares after Stein caused the false sales information to be disseminated to the public. Stein also caused Signalife to issue shares to third parties so that those third parties could sell the shares and remit the proceeds to Stein. From one co-conspirator alone, Stein received illicit gains of over $1.8 million from those sales.
In addition, evidence at trial proved that Stein conspired to obstruct the SEC investigation into Heart Tronics by testifying falsely and arranging for others to testify falsely in an effort to conceal the fraud scheme.
This case was investigated by the U.S. Postal Inspection Service, with assistance from the Office of the Special Inspector General for the Troubled Asset Relief Program. The SEC referred this matter to the Justice Department, conducted a parallel investigation resulting in a civil enforcement action against Stein and others, and provided substantial assistance in this investigation. The Financial Industry Regulatory Authority’s Criminal Prosecution Assistance Group likewise provided substantial assistance in this matter.
This case was prosecuted by Assistant Chief Albert B. Stieglitz Jr., Assistant Chief Kevin B. Muhlendorf, and Trial Attorney Andrew H. Warren of the Criminal Division’s Fraud Section and Assistant Chief Darrin McCullough of the Criminal Division’s Asset Forfeiture and Money Laundering Section.
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.
Armed Career Criminal Guilty in String of Armed RobberiesRead the Press Release
– Federal charges result from “Project Recoil”
LOUISVILLE, Ky. – A convicted felon from Georgia pleaded guilty in United States District Court today before United States Magistrate Judge Dave Whalin announced David J. Hale, United States Attorney for the Western District of Kentucky. The federal charges stemmed from “Project Recoil,” the on-going partnership of multiple Jefferson County, Kentucky law enforcement agencies, developed by U.S. Attorney Hale, to maximize penalties for the most violent offenders and to reduce violent crime in our community.
Xavier Demetrius Porter, 40, pleaded guilty to nine counts of obstructing interstate commerce through robbery, one count of brandishing a firearm during a robbery, and one count of being a felon in possession of a firearm. In 1996, Porter was convicted of three counts of armed robbery, in case number 96-R-398 in Dougherty County (Georgia) Superior Court. During those robberies, he used a sawed-off shotgun.
Porter admitted to robbing Spinelli’s Pizza located at 2905 Goose Creek Road on March 5, 2013, the Subway located at 3503 South Hurstbourne Parkway on March 7, 2013, the Subway located at 8056 New LaGrange Road on March 17, 2013, Circle K located at 4600 Wattbourne Lane on April 15, 2013, the White Castle located at 3705 Bardstown Road on April 16, 2013, the Thornton’s located at 3909 Taylorsville Road on April 17, 2013, the Subway located on Bishop Lane on April 17, 2013, JC=s Cigarette Outlet located on Six Mile Lane on April 18, 2013, and the Adam and Eve store on South Hurstbourne Parkway on April 18, 2013. The federal robbery charges are brought pursuant to the Hobb’s Act, which criminalizes robberies that affect interstate commerce. During eight of the robberies, Porter brandished a firearm. During the first two robberies, he used a small black handgun. During the last five robberies, he used a pistol-grip 12 gauge shotgun. At the time of his arrest, Porter was clutching the money he stole from Adam & Eve in his hand.
Under the terms of his plea agreement, Porter faces 30 years in prison followed by 5 years of Supervised Release . There is no parole in the federal system. Porter also faces a possible fine of $4,500,000. Senior Judge Thomas B. Russell will set the case for sentencing at a later date.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Louisville Metro Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation.
Additional Child Exploitation Charges Filed Against Maine ResidentRead the Press Release
BOSTON – A federal grand jury returned a superseding indictment yesterday adding three additional charges against a Saco, Maine man.
Dillan Letellier, 30, was charged in a seven-count superseding indictment with two counts of coercion and enticement of a minor involving two minor victims, one count of attempted coercion and enticement of a minor, three counts of travel with intent to engage in illicit sexual conduct, and one count of possession of child pornography. In October 2013, Letellier was originally indicted on coercion and travel relating to one minor victim.
The indictment alleges that Letellier met the minor victims on the Internet and thereafter persuaded each minor to meet with him in person. On two separate occasions, Letellier traveled from Maine to one of the minor’s town in Massachusetts where he engaged in sexual intercourse with the minor. On another occasion, Letellier traveled from Maine to a second minor’s town to engage in sexual intercourse with the minor. On Oct. 3, 2013, Letellier was arrested on federal charges. A search warrant was executed at his residence in Maine that day and officers located child pornography on computers. Letellier has remained in federal custody since his arrest in October, 2013.
The charging statutes provide a sentence of no greater than life in prison and a 10 year mandatory minimum in addition to a mandatory minimum of five years of supervised release and a maximum of a lifetime of supervised release, and a fine of $250,000 for each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Special Agent in Charge of the U.S. Postal Inspection Service; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. The case was also investigated the police department in the town(s) in which the minor victims reside. The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz's Major Crimes Unit.
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/.
4 December 2014
Wheeling Man Sentenced in Painkiller Distribution RingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Steven L. Namack, 65, of Wheeling, West Virginia, was sentenced today to 18 months in prison for selling oxycodone as part of a prescription painkiller and cocaine distribution operation, United States Attorney William J. Ihlenfeld, II announced.
During an investigation by the U.S. Drug Enforcement Administration and the Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, Namack was discovered in May 2013 selling oxycodone pills. He pled guilty in September 2014 to one count of “Distribution of Oxycodone.”
Assistant U.S. Attorney John Parr prosecuted the case on behalf of the government.
Senior U.S. District Judge Frederick P. Stamp presided.
Wheeling Man Convicted of Unlawful Possession of FirearmsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Melvin B. Neff, 56, of Wheeling, West Virginia, was convicted today for unlawful possession of firearms, United States Attorney William J. Ihlenfeld, II announced.
Neff was convicted in 1993 in the Court of Common Pleas of Washington County, Pennsylvania of the felony offense of “Violation of the Controlled Substance, Drug Device and Cosmetic Act.” As a result of the conviction, Neff was prohibited from possessing a firearm.
In June 2014, Neff was discovered in possession of eight firearms including five rifles, two shotguns, and a .45 caliber pistol. Neff admitted to unlawful possession of the firearms when he pled guilty today to one count of “Prohibited Person in Possession of a Firearm.”
Neff faces up to ten years in prison and fine of up to $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Steve Vogrin is prosecuting the case on behalf of the government. The Wheeling, West Virginia Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Senior U.S. District Judge Frederick P. Stamp presided.
Wheeling Man Convicted of Unlawful Possession of FirearmsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Melvin B. Neff, 56, of Wheeling, West Virginia, was convicted today for unlawful possession of firearms, United States Attorney William J. Ihlenfeld, II announced.
Neff was convicted in 1993 in the Court of Common Pleas of Washington County, Pennsylvania of the felony offense of “Violation of the Controlled Substance, Drug Device and Cosmetic Act.” As a result of the conviction, Neff was prohibited from possessing a firearm.
In June 2014, Neff was discovered in possession of eight firearms including five rifles, two shotguns, and a .45 caliber pistol. Neff admitted to unlawful possession of the firearms when he pled guilty today to one count of “Prohibited Person in Possession of a Firearm.”
Neff faces up to ten years in prison and fine of up to $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Steve Vogrin is prosecuting the case on behalf of the government. The Wheeling, West Virginia Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Senior U.S. District Judge Frederick P. Stamp presided.
West Milford Township, New Jersey, Man Charged with Distributing Sexually Explicit Images of ChildrenRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was arrested at his home today by special agents of the FBI and officers of the Passaic County Sheriff’s Office and West Milford Police Department on a charge that he distributed sexually explicit images of children from his computer, U.S. Attorney Paul J. Fishman announced.
Thomas Bachalis, 30, of West Milford Township, New Jersey, is charged by complaint with one count of distributing images of child pornography over the Internet. He is scheduled to make his initial court appearance this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to the complaint:
On Aug. 15, 2013, Bachalis allegedly distributed images depicting child sexual abuse on the Internet via peer-to-peer file sharing software. In September 2013, officers of the Passaic County Sheriff’s Office executed a search warrant at Bachalis’ residence and seized digital evidence that contained images depicting child sexual abuse—including material involving prepubescent minors.
The distribution count carries a minimum penalty of five years in prison and a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik; and the West Milford Police Department, under the direction of Chief Timothy Storbeck, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Courtney A. Howard of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Bachalis, Thomas Complaint
Waterbury Man Sentenced to Federal Prison for Trafficking Cocaine Stolen from the U.S. MailRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JUSTIN HOGAN, 34, of Waterbury, was sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven to 24 months of imprisonment, followed by four years of supervised release, for trafficking cocaine stolen from the U.S. Mail.
This matter stems from a federal investigation into the use of the mails to transport narcotics from Puerto Rico to the greater Waterbury area.
According to court documents and statements made in court, Justin Hogan’s brother, Edward Hogan, was employed by the U.S. Postal Service as a supervisor of customer service assigned to the Plaza Station Post Office in Waterbury. From approximately January 2012 to August 2013, Edward Hogan used his position with the U.S. Postal Service to profile packages that he believed contained illegal drugs by making note of the originating address, destination address, size of the package and value of the postage. Upon identifying a package that likely contained narcotics, Edward Hogan would steal the package from the mail and bring it to his or Justin Hogan’s residence where they would open the package and extract the drugs. Edward Hogan would then reseal the empty package and deliver it to the destination.
The brothers distributed the stolen drugs to third parties for profit.
Through this scheme, Edward and Justin Hogan stole and then sold more than 100 pounds of marijuana and two kilograms of cocaine.
On November 9, 2013, law enforcement surveilled Edward Hogan as he intercepted a package containing approximately two kilograms of cocaine that was delivered to the Waterbury Main Post Office on Grand Street. He then transported the parcel to his residence. Justin Hogan arrived at the residence a short time later and opened the package in Edward Hogan’s presence.
On August 7, 2014, Justin Hogan pleaded guilty to one count of conspiracy to possess with intent to distribute 500 grams or more of cocaine, and one count of receipt of stolen mail matter. On the same date, Edward Hogan pleaded guilty to one count of conspiracy to possess with intent to distribute 500 grams or more of cocaine, and one count of embezzlement of mail by a U.S. Postal Employee.
Edward Hogan is scheduled to be sentenced on December 11.
This case has been investigated by the Federal Bureau of Investigation, the U.S. Postal Inspection Service and the U.S. Postal Service – Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Christopher M. Mattei.
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(203) 821-3722 [email protected]Venice Escrow Agent Sentenced for Role in Wire Fraud Investment SchemeRead the Press Release
Tampa, Florida – Senior U.S. District Judge Susan C. Bucklew has sentenced Stephen J. Cormier (42, Nokomis) to three years and five months in federal prison for his role in a conspiracy to commit wire fraud. As part of his sentence, the Court also entered a money judgment in the amount of $4.7 million, the proceeds of the fraudulent scheme. He pleaded guilty on March 5, 2013.
According to court documents, Cormier was the sole owner of a title insurance company, A Clear Title and Escrow Exchange (ACTEE), located in Venice, Florida. Part of the business of ACTEE was to write title insurance policies and hold escrow monies in connection with real estate and business transactions. In his capacity as a licensed escrow agent, Cormier received funds from various individuals that were the proceeds of fraudulent activity, including investments that had been made by numerous investor-victims related to “synthetic” financial transactions. These transactions generally involved promises of high rates of return within a short time period, and have been publicly labelled as fraudulent by the Securities and Exchange Commission and other financial authorities. Cormier also disbursed those funds at the request and direction of other co-conspirators. As an escrow agent, he made false representations to the victims as to the status and amount of their deposited funds. The total amount of investor funds Cormier handled was approximately $4.7 million.
This case was investigated by the Federal Bureau of Investigation with assistance from the Sarasota County Sherriff’s Office. It was prosecuted by Assistant United States Attorneys Jay L. Hoffer and Cherie Krigsman.
United States Obtains Fraud Judgment in Discrimination Class Action CaseRead the Press Release
GREAT FALLS – The United States Attorney’s Office announced today that it has obtained a summary judgment for fraud in the filing of a fraudulent claim in a nationwide class-action lawsuit in which Native American producers claimed discrimination in the handling of their agriculture loans by the Farm Services Agency (FSA) of the U.S. Department of Agriculture (USDA).
In a civil False Claims Act suit against Patrick Charles Thomas, 56, of Cut Bank, the government alleged that Thomas had made fraudulent representations as to his eligibility for a share of the proceeds from the Keepseagle class action settlement. The United States seeks recovery and damages in the amount of $944,690.73. In his November 4, 2014, order, U.S. District Judge Brian Morris entered summary judgment in favor of the United States. The amount to be awarded to the government will be determined by a separate court order.
In Keepseagle v. Vilsak, Civil Action No. 1:99-CV-03119 (DDC) (EGS), a class action lawsuit was pursued by Native American farmers and ranchers alleging that they had been discriminated against by the USDA and that they had been denied equal access to credit in the USDA Farm Loan Program. As a result of that lawsuit, on April 28, 2011, a $710 million settlement with the USDA was approved, and claims were entertained from individual Native American producers who asserted that they had been discriminatorily aggrieved by the USDA in the lending process.
The Native American farmers and ranchers entitled to file a claim and receive relief under the settlement were producers who: a) farmed or ranched or attempted to farm or ranch between January 1, 1981 and November 24, 1999; b) sought, or attempted to seek, a farm loan from the USDA during that period; c) had their application denied, provided late, approved for a lessor amount than asked, was encumbered by restrictive conditions, or failed to have appropriate loan servicing; d) complained about discrimination to the USDA during the same time period; and, e) suffered economic harm attributable to USDA actions.
Successful claimants were eligible to receive a payment of up to $50,000 and forgiveness of some or all outstanding USDA loans.
In December of 2011, Patrick Thomas, a former Chairman of the Blackfeet Tribe and a rancher who operated near Cut Bank, made a Keepseagle claim alleging that he had been discriminated against. In his claim he marked the “Yes” box for the question “Were you denied an opportunity to submit application(s) for loan(s) or loan servicing, or discouraged from applying between January 1, 1981 and November 24, 1999?”. In an affidavit in support of his claim, Thomas represented that on three occasions his loans were thrown away by the FSA representative. Thomas alleged that he had communicated his claim of discrimination, as required to participate in the settlement, to FSA representatives at the time. Thomas’s claim was processed and he received $50,000 and forgiveness of all of his FSA debt. The award and forgiveness of debt totaled $314,896.91.
On April 18, 2013, Thomas was indicted by a federal Grand Jury which charged him with filing a false claim in the Keepseagle litigation, selling secured property, and making false statements with regard to his application for and receipt of federal agricultural loans. The United States dismissed the Keepseagle count from the indictment on July 2, 2013, electing instead to pursue the fraud claim as a civil matter. Thomas pleaded guilty to selling property pledged as collateral to the FSA and was sentenced to a year and a day in prison in October 2013. His criminal case has been appealed to the Ninth Circuit.
During the course of the criminal case Thomas admitted that he had not alleged discrimination during the eligibility period. On the basis of his admissions, Judge Morris found no material dispute of fact as to whether Thomas filed a false Keepseagle claim and granted judgment to the United States.
U. S. Attorney Mike Cotter welcomed the decision. “Discrimination is too important a concern and too serious an allegation to be diminished by fraud and deceit. If a Native American farmer or rancher was discriminated against, that producer is entitled to a remedy. Those who make fraudulent claims only cast aspersion on valid claims and undermine the public’s confidence in the justice system. They must be held to account for the fraud, not just because all fraud is wrong, but to preserve respect for the law and the institutions that provide remedies for the honestly aggrieved.”
USP-Canaan Inmate Sentenced to 30 Months of Imprisonment for Conspiring to Assault Another InmateRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that Senior United States District Court Judge Richard P. Conaboy has sentenced Johnnie Williams, age 36, formerly of Memphis, Tennessee, to 30 months’ imprisonment for being involved in a conspiracy to assault another inmate with a dangerous weapon in February 2014. Williams pleaded guilty to the charge in September.
United States Attorney Peter Smith stated that the victim was another inmate who was injured when Williams stabbed him with a weapon commonly referred to as a shank. Charges are pending against the other alleged conspirator who used a mace-type weapon constructed from a lock attached to a sock to attempt to assault the victim inmate before being subdued by correctional officers.
The case was investigated by the Federal Bureau of Investigation and the Bureau of Prisons. Assistant United States Attorney John Gurganus prosecuted the case.
U.S. Attorney Adding Resources to Combat Crime in Eastern PanhandleRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – As part of a continuing initiative to bring additional law enforcement resources to West Virginia’s Eastern Panhandle, two new federal prosecutors have joined the U.S. Attorney’s Office, United States Attorney William J. Ihlenfeld, II, announced today.
Anna Krasinski and Andrew Williamson took the formal oath of office before U.S. District Judge Gina M. Groh in federal court in Martinsburg this morning. In their new role as criminal prosecutors, both Krasinski and Williamson will target drug trafficking. Williamson will also focus on violent crime while Krasinski will prosecute white collar offenses.
“Hiring two new talented and energetic prosecutors with significant litigation experience is merely one component of the ongoing effort to combat heroin trafficking and violent crime in the Eastern Panhandle,” said U.S. Attorney Ihlenfeld.
In September 2014, Berkeley County, West Virginia was designated as a critical drug trafficking region as part of the Office of National Drug Control Policy’s High Intensity Drug Trafficking Areas (HIDTA) program. The HIDTA designation will bring significant federal resources to region, including additional support for the Eastern Panhandle Drug and Violent Crime Task Force.According to Ihlenfeld, the rapid growth of the Eastern Panhandle over the past decade has led to a need for the U.S. Attorney's office to grow along with it. "In addition to the new prosecutors sworn in today, we're actively pursuing more resources in order to enhance safety, security, and law enforcement effectiveness in the region," said Ihlenfeld.
Krasinski graduated from New York University in 2005 with a Bachelor of Science in Social Studies Education and a Master of Arts in Environmental Conservation Education. She earned her JD in 2009 from the University of Illinois College of Law, where served as a Managing Editor for the Journal of Law, Technology & Policy. Prior to joining the U.S. Attorney's Office, Krasinski served as a law clerk for U.S. District Judge Robert N. Scola in the Southern District of Florida. She was also a Litigation Associate at Holland & Knight LLP in Chicago, Illinois.
Williamson graduated from the University of Maryland with a Bachelor of Arts in Broadcast Journalism in 2005. He earned his JD from American University in 2011, where he served on the Editorial Board of the Journal of Gender, Social Policy & the Law. Prior to joining the U.S. Attorney's Office, Williamson served as an Associate at Carr Maloney and Tobin O'Connor & Ewing, both in Washington, DC.
Pictured: U.S. District Judge Gina M. Groh, AUSA Andrew Williamson, AUSA Anna Krasinski, and United States Attorny William J. Ihlenfeld, II.
Two Men, Including Maryland Attorney, Indicted for Allegedly Defrauding 125 Business Owners of $2 Million in “Advance Fees”Read the Press Release
CHICAGO — Two principals of a defunct suburban company that purported to have billions of dollars to finance small businesses were indicted on federal fraud charges for allegedly swindling about $2 million in advance fees from approximately 125 business owners nationwide. With no such assets and no history of funding small businesses, the defendants instead allegedly used the money they collected for personal purposes, including more than $1.1 million in so-called “loans” to themselves and others.
One defendant, ALBERTO B. COLÓN, was the chairman of the board and chief executive officer, while the other defendant, ARTEMIO RIVERA, was the treasurer and chief corporate counsel of the Commercial or Residential Development Group, Inc., also known as COR, which had a mailing address in Hoffman Estates.
Colón, 46, of West Dundee and formerly of Elgin, and Rivera, 56, of Falls Church, Va., who is a licensed attorney in Maryland, were each indicted on four counts of wire fraud and one count of mail fraud in a five-count indictment returned yesterday by a federal grand jury in Chicago. The indictment also seeks forfeiture of approximately $2 million from both defendants, who will be ordered to appear for arraignment on a date to be determined in U.S. District Court in Chicago.
According to the indictment, Colón and Rivera defrauded business owners between September 2008 and December 2011 by making false representations that COR had billions of dollars in assets and would provide business owners with billions of dollars in funding; provide the funding within a specific time period; use the advance fees they collected for specific purposes related to the business owners’ requests; and refund the fees if COR failed to provide funding. Both defendants knew that COR had no such assets and no history of funding businesses, the indictment alleges.
The defendants allegedly solicited business owners themselves and also used individuals they sometimes referred to as “rangers” to solicit business owners to apply for funding. They fraudulently represented that COR had approved requests for funding in amounts ranging from $100 million to $1.2 billion, knowing that they had not secured funding for those projects, the charges allege.
Colón and Rivera also allegedly promised business applicants who signed so-called “Project Partner Agreements” and paid an advance fee of $20,000 that COR would apply the advance fee toward the creation of a new corporation, trust, and foundation to accept funding from COR. Further, the charges allege that they falsely promised COR would contribute an additional $80,000 to the funding entities in exchange for signing project agreements.
As part of the scheme, Colón and Rivera allegedly made false statements in proceedings before the Illinois Department of Securities.
Each count of wire and mail fraud carries a maximum penalty of 20 years in prison and a $250,000 million fine, or, alternatively, a fine totaling twice the loss or twice the gain, whichever is greater. If convicted, restitution is mandatory and the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Illinois Department of Securities cooperated with the investigation.
The government is being represented by Assistant U.S. Attorney Cristopher McFadden.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Two Illegal Aliens Sentenced for Immigration ViolationsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that two sentencings involving illegal aliens have taken place in U.S. District Court in Scranton.
On December 2, 2014, United States District Court Judge Richard P. Conaboy sentenced Jose Efrain Martinez-Aguilar, a/k/a Carlos Oreana Benitez, age 48, a native and citizen of Honduras, to a term of imprisonment for 27 months followed by immediate deportation. Martinez-Aguilar was previously indicted and charged with illegal reentry into the United States after having been previously deported and after having been convicted of an aggravated felony involving the trafficking of controlled substances.On December 4, 2014, Judge Conaboy sentenced Juan Domingo Tellar-Mendoza, a/k/a Juan Carlos Tellar-Mendoza, age 30, a native and citizen of Nicaragua, to a term of imprisonment of time served, approximately 6 months, and immediate deportation. Tellar-Mendoza was previously indicted and charged with illegal reentry into the United States after having been previously deported.
The investigations were conducted by the Department of Homeland Security (DHS), Homeland Security Investigations (HSI). Assistant United States Attorney Michelle Olshefski prosecuted both cases.Two Gulfport Men Sentenced to Prison for Theft of Postal Service EquipmentRead the Press Release
Gulfport, Miss – John Wendell Boyles, 51, of Gulfport, and his son, Nicholas Alan Boyles, 24, also of Gulfport, were sentenced in federal court this week pursuant to their earlier plea of guilty to the charge of conspiracy to convert Postal Service property to their own use and unlawfully selling the property over a two-year period, announced U.S. Attorney Gregory K. Davis, and Inspector-in-Charge Robert B. Wemyss of the U.S. Postal Inspection Service.
From approximately February, 2011, to February, 2013, John Wendell Boyles and Nicholas Boyles devised a scheme to convert Postal Service equipment to their own use and sell the equipment for scrap metal. As a part of their scheme, the Boyles stole Over-The-Road (OTR) Containers, which are made primarily of aluminum, cut them apart and sold the pieces as scrap. OTR containers are used by the Postal Service to organize and carry mail on freight trucks between Post Offices and Postal Distribution Centers.
United States District Judge Sul Ozerden sentenced John Wendell Boyles to 57 months imprisonment followed by three years of supervised release. Nicholas Alan Boyles was sentenced to 40 months imprisonment followed by three years of supervised release. Both were sentenced to pay restitution to the U.S. Postal Service in the amount of $2,739,842.00. Additionally, both defendants were ordered to pay a forfeiture money judgment in the amount of $242,554.47.
The investigation in this case was conducted by the United States Postal Inspection Service. Postal Inspector Doug Wilson was the lead investigator and Assistant U.S. Attorney Stan Harris was the prosecutor for the case. U.S. Attorney Davis commended the Postal Inspection Service for its diligent work in the investigation of this matter.
Trinidad and Tobago Resident Sentenced for Transporting Seven Kilograms of CocaineRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JUNIOR LEOPOLD, age 38, of Trinidad and Tobago, was sentenced yesterday for bringing seven kilograms of cocaine into the United States.
U.S. District Judge Ivan L.R. Lemelle sentenced LEOPOLD to 45 months incarceration and two years of supervised release.
On June 11, 2014, LEOPOLD pleaded guilty to one count of possession with the intent to distribute more than five kilograms of cocaine. As part of the plea, LEOPOLD, who worked on a ship that was traveling from Trinidad and Tobago to the United States, admitted that he was being paid $5,000 per kilogram to bring the cocaine into the United States.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
Three Mexican Nationals Sentenced for Growing Marijuana on Public Lands and Possession of FirearmsRead the Press Release
BOISE — Jose Misael Ayala-Talavera, 20, Marcos Solano-Farias, 31, and Carlos Cerda-Carpio, 40, Mexican nationals, were sentenced today on charges of conspiring to unlawfully manufacture with intent to distribute more than 1,000 marijuana plants, illegal possession of a firearm, and damage to government property, U.S. Attorney Wendy J. Olson announced. The defendants appeared today before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
Ayala-Talavera was sentenced to 111 months in prison for conspiracy to unlawfully manufacture with intent to distribute marijuana, possession of a firearm in furtherance of a drug trafficking crime, and injury to government property.
Solano-Farias was sentenced to 30 months in prison for conspiracy to unlawfully manufacture with intent to distribute marijuana, possession of a firearm by a prohibited person, and injury to government property.
Cerda-Carpio was sentenced to 27 months in prison for conspiracy to unlawfully manufacture with intent to distribute marijuana, and for possession of a firearm by a prohibited person.
The defendants will forfeit all cash assets derived by them or other co-defendants from the criminal offenses and any firearms unlawfully used or possessed.
The sentences arose out of two outdoor marijuana growing operations in the Boise National Forest, a few miles from Highway 21 in Boise County. The three men were apprehended by law enforcement at a camp located in a marijuana grow site on Rabbit Creek, with 1,411 live plants as well as harvested marijuana. According to the plea agreements, investigators found and seized two semi-automatic handguns, an AK-47 type rifle, in the camp, and several hundred marijuana plants that had already been harvested from the growing operation. Investigators located and eradicated all live marijuana plants. Law enforcement also found a related grow site at Beaver Creek, where they removed 5,463 marijuana plants.
Juan Pablo Villasenor-Villa, the organizer and leader, was convicted by jury trial in November 2014, of continuing criminal enterprise, manufacturing 1,000 or more marijuana plants with intent to distribute, possession of more than 100 kilos of a controlled substance with intent to distribute, and injury to government property. He will be sentenced February 4, 2015.
“Vigorous prosecution of those who grow illegal drugs on federal land is a high priority of this office,” said Olson. “Those who operate marijuana grows not only traffic in illegal drugs, but they also damage wildlife and the environment and, through their possession and possible use of firearms, pose a significant danger to all Idahoans who seek to use our national forests for hiking, hunting and recreation purposes. Drugs and guns are a dangerous and often violent combination. Today’s sentences demonstrate that the federal agents and federal prosecutors will carefully target those who use or possess firearms for unlawful drug businesses.”
The case is the result of a joint investigation result of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Drug Enforcement Administration, Bureau of Land Management, and United States Forest Service, with assistance from the Ada County Sheriff’s Office, Boise County Sheriff’s Office, Boise Police Department, City County Narcotics Unit (Canyon County Sheriff’s Office and Caldwell Police Department), the Idaho National Guard, Meridian Police Department, Nampa Police Department, Spokane Police Department, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and Washington State Police.
Three Members of Drug Trafficking Organization Admit to Conspiring to Sell Heroin in New JerseyRead the Press Release
TRENTON, N.J. – Three members of a large-scale drug trafficking organization have admitted conspiring to distribute heroin in Ocean and Monmouth counties and elsewhere in New Jersey, U.S. Attorney Paul J. Fishman announced today.
Richard Durham, 28, of Brick, New Jersey, Jamar Johnson, 35, a/k/a “Rep,” of Lakewood, New Jersey, and Anthony J. Brooks, 45, of San Bernadino, California, all pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to informations charging them with conspiring to distribute heroin. Durham entered his plea today. Johnson and Brooks entered their pleas on Dec. 1, 2014, and Nov. 24, 2014, respectively.In March 2014, 18 other alleged members of the drug trafficking organization of which Durham, Johnson, and Brooks were members were charged by criminal complaint with conspiring to distribute heroin. The complaint referred to the drug trafficking organization as the “Britt-Young DTO,” after its leaders, Robert Britt, a/k/a “True,” and Rufus Young, a/k/a “Equan,” a/k/a “E-Money,” a/k/a “Kintock.” Of those 18 individuals, five have pleaded guilty.
According to documents filed in this case and statements made in court:
Between September 2013 and March 2014, Johnson and Durham conspired with Rufus Young and others to distribute heroin in Ocean and Monmouth counties as part of the Britt-Young DTO.
Brooks shipped through the U.S. Postal Service packages from California containing large quantities of heroin and cocaine to conspirators in New Jersey, including an individual who supplied heroin to the Britt-Young DTO. The conspirators in New Jersey then transported and packaged the narcotics and distributed them to others. Brooks shipped more than 1 kilogram of heroin and 1.5 kilograms of cocaine from California to New Jersey.
The narcotics conspiracy charge to which Durham and Johnson pleaded guilty carries a maximum penalty of 20 years in prison and $1 million fine. The charge to which Brooks pleaded guilty carries a mandatory minimum penalty of five years in prison, a maximum of 40 years in prison and a $5 million fine. Sentencing for Durham is scheduled for March 10, 2015. Johnson’s sentencing is scheduled for March 9, 2015, and Brooks’ sentencing is scheduled for March 2, 2015.
U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Office, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the guilty pleas.
The government is represented by Assistant U.S. Attorney Nicholas Grippo of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense Counsel: Durham: Scott Krasny Esq., West Trenton, N.J.
Johnson: Joshua Markowitz Esq., Lawrenceville, N.J.
Brooks: Ryan Clark Esq., Freehold, N.J.Durham, Richard Information
Brooks, Anthony, Information
Johnson, Jamar InformationThree Former Georgia Correctional Officers Sentenced for Offenses Related to beating of Inmate and Ensuing Cover-UpRead the Press Release
The Justice Department announced that Christopher Hall, a former Sergeant for the Correctional Emergency Response Team (CERT) at Macon State Prison (MSP) in Oglethorpe, Georgia, and two former CERT officers, Ronald Lach and Delton Rushin, were sentenced on Thursday, December 4, 2014, for offenses related to the beating of an MSP inmate in 2010 and the cover-up that followed. All three officers were convicted by a federal jury on June 20, 2014.
Hall was sentenced to 72 months in prison for conspiracy to obstruct justice and two obstruction-related offenses. Lach was sentenced to 90 months in prison for his involvement in the beating of the inmate, for conspiring to cover up the beating and for writing a false report. Rushin was sentenced to 60 months in prison for conspiring to obstruct justice and obstruction-related offenses. All three have two years of supervised release.
Evidence at trial, and a series of guilty pleas that preceded trial, showed that Lach was one of several MSP officers who participated in a retaliatory beating against an inmate in order to punish the inmate for his prior misconduct. Hall, Lach and Rushin then conspired with other officers to cover up the beating by providing false and misleading statements to investigators and writing false reports.
To date, eight former MSP officers have been convicted in connection with the beatings of inmates at Macon State in 2010 and the cover-up that followed.
“Eight former corrections officials from Macon State Prison now stand convicted for their involvement in beating inmates or in the coordinated cover-ups that followed each assault,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “These officers betrayed the public trust by using their official positions to commit violent civil rights abuses and then to try to hide what they had done. The Department of Justice will continue to vigorously prosecute corrections officers who use their power to violate federal law.”
"When individuals are sentenced to prison, we expect that they will serve their time under the supervision of dedicated correctional officers and staff,” said U.S. Attorney Michael J. Moore for the Middle District of Georgia. “What we don't expect, and will not tolerate, is for the people in charge of supervising and protecting the prisoners to beat the inmates and then try to cover it up when word of those crimes makes its way outside the prison walls. The inmates in prisons across the state are serving a sentence of incarceration, and that doesn't include being subject to beatings and the abuse of power by corrections officers. And while being a prison guard is both an important and challenging task, it is a job that requires adherence to the law. We are lucky in Georgia to have many outstanding corrections officers who do their jobs every day with unmatched professionalism. The defendants in this case broke the law and the trust they were given."
These cases were investigated by the Macon Resident Agency of the FBI, with the support of the Georgia Bureau of Investigation. The cases were prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Tona Boyd for the Civil Rights Division, with the assistance of the United States Attorney’s Office in Macon.
Three Former Beaumont ISD Employees Guilty in Warehouse Fraud SchemeRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas — Three former Beaumont Independent School District employees have pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Daryl Glenn Johnson, 44, of Beaumont, pleaded guilty to conspiracy today before U.S. Magistrate Judge Keith Giblin. Erin Gipson Johnson, 38, of Beaumont, and Kailyn DeShondra Pete, 25, of Beaumont, each pleaded guilty to fraud upon programs receiving federal funds today before Judge Giblin.
According to the indictment, from July 2009 through June, 2012, Daryl Johnson, who was employed as the warehouse supervisor for the school district, first his wife, Erin Johnson, and then a friend, Kailyn Pete, placed on the BISD payroll as temporary employees. However, neither Erin Johnson nor Kailyn Pete ever actually worked as a BISD warehouse employee. Daryl Johnson had the autonomy to hire temporary warehouse employees on his own, and the authority to determine how many hours they would be paid, and could do so unilaterally and without the authorization or direct knowledge of anyone else. Daryl Johnson used this authority to fraudulently verify that both Erin Johnson and Kailyn Pete worked the hours indicated on their respective timesheets, which included extensive amounts of overtime when he knew that they in fact had not worked any of the hours. From July 2009 through May 2011, Erin Johnson was paid $193,998.37. During the timeframe of June 2010 through May 2012, Kailyn Pete was paid $90,041.05. The defendants were indicted by a federal grand jury on Aug. 6, 2014.
The defendants each face up to five years in federal prison at sentencing. Sentencing dates have not been set.
This case is being investigated by the joint Task Force with the Jefferson County District Attorney’s Office, the Beaumont Police Department, and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Joe Batte and Christopher T. Tortorice.
Three Charged with Conspiring to Defraud Consumers through Fraudulent Debt Relief Services FirmsRead the Press Release
A grand jury in Santa Ana, California, indicted three individuals for allegedly operating fraudulent debt relief services companies that offered to settle credit card debts but instead took victims’ payments as undisclosed up-front fees, the Justice Department and U.S. Postal Inspection Service announced.
Jeremy Nelson, 29, Elias Ponce, 27, and John Vartanian, 55, all of Orange County, California, were charged with conspiracy, mail fraud, and wire fraud in connection with their roles at companies known as Nelson Gamble & Associates and Jackson Hunter Morris & Knight LLP. According to the indictment, the defendants portrayed the debt relief companies as law firms and attorney-based companies that would negotiate favorable settlements with creditors. Clients made monthly payments expecting the money to go toward settlements. But the defendants instead took at least 15 percent of the total debt as company fees, with the first six months of payments going almost entirely towards undisclosed up-front fees.
If convicted, the defendants face a maximum penalty of 20 years in prison and a $250,000 fine for each count of conspiracy, mail fraud, and wire fraud, or an alternate fine of twice the loss or twice the gain, whichever is greater, along with mandatory restitution.
“Americans facing credit card debts are sometimes desperate to improve their financial situations,” said Acting Assistant Attorney General Joyce R. Branda for the Civil Division. “The Civil Division will vigorously pursue those who take advantage of vulnerable consumers trying to dig themselves out of debt.”
“Lying to victims to get their money is not only wrong, it is criminal,” said Acting Inspector in Charge Troy Raper of the U.S. Postal Inspection Service. “Postal Inspectors aggressively investigate any operations that use the U.S. mail to perpetrate frauds on the American public.”
According to the Indictment, the scheme ran from February 2010 to September 2012. The Indictment alleges that Jeremy Nelson changed the name of the company from Nelson Gamble to Jackson Hunter after a series of complaints and refund requests. Nelson allegedly directed his co-conspirators and employees to tell victims that Nelson Gamble had gone bankrupt, and that Jackson Hunter was an unrelated company that had purchased the right to service some of Nelson Gamble’s files. The defendants and others allegedly blamed past problems on Nelson Gamble and assured victims that Jackson Hunter was a more experienced and better-run company. Some victims who previously demanded refunds accepted the explanation that Nelson Gamble was bankrupt and did not pursue complaints against Jackson Hunter.
Acting Assistant Attorney General Branda commended the Postal Inspection Service team assigned to the Civil Division’s Consumer Protection Branch for their investigative efforts and thanked the U.S. Attorney’s Office for the Central District of California for their contributions to the case. The case is being prosecuted by Trial Attorneys Dan Baeza and Alan Phelps with the Consumer Protection Branch.
The charges in the indictment are only allegations, and the defendants are presumed innocent unless and until proven guilty.
Three Bronx Gang Members Convicted in Manhattan Federal Court of Racketeering Charges, Murder, Conspiracy to Murder, Attempted Murder, Narcotics, and Firearms OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that FELIX LOPEZ-CABRERA, 24, CARLOS LOPEZ, 26, and LUIS BELTRAN, 26, were convicted yesterday in Manhattan of various racketeering charges, murder, conspiracy to murder, attempted murder, narcotics conspiracy, and firearms offenses following a twelve-week jury trial before U.S. District Judge Paul A. Engelmayer. The jury convicted LOPEZ-CABRERA, LOPEZ and BELTRAN of charges arising out of their involvement, from 2003 through 2012, in the criminal activities of the Bronx Trinitarios gang (the “BTG”) – a violent street gang that was involved in drug-trafficking and multiple acts of violence, including murder and attempted murder, in New York, New York, the Bronx, New York, and Yonkers, New York.
According to the Superseding Indictment and evidence admitted at trial:
The BTG is a criminal organization that operates primarily in the Bronx, New York. It started in the prison system in the late 1980’s and subsequently spread to the streets. FELIX LOPEZ-CABRERA was a member, and a leader, of the BTG who directed other members to carry out illegal and other activities as part of the racketeering conspiracy. As part of their membership and participation in that enterprise, LOPEZ-CABRERA and CARLOS LOPEZ murdered Raffy Tavares and Irving Cruz, both 19, in the vicinity of 81 East 181st Street, Bronx, New York, on May 23, 2010. LUIS BELTRAN and LOPEZ-CABRERA murdered Raymond Casul, 23, in the vicinity of 271 West Kingsbridge Road, Bronx, New York, on March 31, 2009. LOPEZ-CABRERA was also involved in the September 4, 2009, murder of David Avila-Gomez, 23, in the vicinity of 15 Mount Carmel Place, Yonkers, New York. CARLOS LOPEZ was also involved in the November 20, 2010, murder of Freddy Polanco, 19, in the vicinity of 75 West 190th Street, Bronx, New York. LOPEZ-CABRERA, LOPEZ, and BELTRAN also carried out multiple assaults and attempted murders of individuals believed to be members of rival gangs including the Latin Kings, Dominicans Don’t Play, and the Bloods. LOPEZ-CABRERA and LOPEZ also participated in a more than decade-long conspiracy to distribute kilograms of marijuana and crack cocaine in the Bronx. The evidence at trial also showed that LOPEZ-CABRERA, LOPEZ, BELTRAN, and other members of the BTG possessed, brandished, and discharged a number of firearms in connection with their drug trafficking and racketeering activities with the Trinitarios gang.
FELIX LOPEZ-CABRERA was convicted of one count of racketeering, one count of racketeering conspiracy, two counts of conspiracy to murder in aid of racketeering, four counts of murder in aid of racketeering, two counts of assault and attempted murder in aid of racketeering, one count of conspiracy to distribute or possess with intent to distribute 100 kilograms and more of marijuana, 28 grams and more of crack cocaine, quantities of cocaine and oxycodone, two counts of discharging a firearm in furtherance of a crime of violence or a drug-trafficking crime, and four counts of discharging a firearm in connection with the murders of Raymond Casul, Raffy Taveras, Irving Cruz, and David Avila-Gomez. LOPEZ-CABRERA is scheduled to be sentenced on May 4, 2015, at 9:30 a.m., before Judge Engelmayer.
CARLOS LOPEZ was convicted of one count of racketeering, one count of racketeering conspiracy, two counts of conspiracy to murder in aid of racketeering, three counts of murder in aid of racketeering, one count of assault and attempted murder in aid of racketeering, one count of conspiracy to distribute or possess with intent to distribute 100 kilograms and more of marijuana, 28 grams and more of crack cocaine, quantities of cocaine and oxycodone, two counts of discharging a firearm in furtherance of a crime of violence or a drug-trafficking crime, and three counts of discharging a firearm in connection with the murders of Raffy Taveras, Irving Cruz, and Freddy Polanco. LOPEZ is scheduled to be sentenced on May 5, 2015, at 9:30 a.m., before Judge Engelmayer.
LUIS BELTRAN was convicted of one count of racketeering conspiracy, one count of conspiracy to murder in aid of racketeering, one count of murder in aid of racketeering, and one count of discharging a firearm in connection with the murder of Raymond Casul. BELTRAN is scheduled to be sentenced on May 8, 2015, at 9:30 a.m., before Judge Engelmayer.
The chart below provides the counts of conviction and the penalties for each defendant. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.
Mr. Bharara praised the investigative work of the New York City Police Department’s Bronx Gang Squad, the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Joint Firearms Task Force, the Drug Enforcement Administration, and Immigration and Customs Enforcement’s Homeland Security Investigations.
This case is being handled by the Office’s Violent and Organized Crimes Unit. Assistant United States Attorneys Jessica Ortiz, Rachel Maimin, and Micah Smith conducted the trial.
Click here to view chart(s)The United States Attorney’s Office Clarifies February 14, 2014 Settlement with Sanjay PuriRead the Press Release
Baltimore, Maryland - The United States Attorney’s Office has clarified its February 18, 2014 press release concerning a civil settlement dated February 14, 2014 with medical billing company Engage Medical, Inc., its owner Sanjay Puri and three medical practices. The parties agreed to pay a total of $3,340,979 to settle civil claims that they had overbilled the Government for nuclear stress tests.There was, however, no finding of liability, and Mr. Puri denied liability. The claims settled by the agreement were allegations. As the agreement stated, the parties settled to “avoid the delay, uncertainty, inconvenience and expense of protracted litigation.” Mr. Puri agreed as part of the settlement to “cooperate fully” with any ongoing investigation.
Surgeon Pleads Guilty to Illegal Distribution of OxycodoneRead the Press Release
ALBANY, NEW YORK – JEFFREY GUNDEL, age 50, of Gansevoort, New York, pled guilty in Albany yesterday before United States District Judge Mae A. D’Agostino to one count of unlawful distribution of oxycodone, announced United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, Drug Enforcement Administration.
As part of his guilty plea, GUNDEL admitted that, between May 2011 and April 2014, he distributed at least 248 prescriptions for 240 30-milligram oxycodone tablets outside the course of professional practice and for no legitimate medical purpose. GUNDEL also admitted that he received cash kickbacks in exchange for the prescriptions. Sentencing is scheduled for April 2, 2014 in Albany, New York. GUNDEL faces a maximum term of imprisonment of 20 years, a $1,000,000 fine, and a term of supervised release.
This case was investigated by the Drug Enforcement Administration and is being prosecuted by Assistant United States Attorney Wayne A. Myers.
Stockton Man Sentenced to 6 Years in Prison for Aggravated I.D. Theft in Large Scale U.S. Mail Theft and Bank Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Rudy Angelo Trujillo, 36, of Stockton, was sentenced by U.S. District Judge Morrison C. England Jr. today to six years in prison for three counts of aggravated identification theft, United States Attorney Benjamin B. Wagner announced.
According to court documents, Trujillo and his wife, Regina L. Perea, 34, possessed hundreds of pieces of stolen U.S. mail, along with hundreds of stolen checks, credit cards and identification documents at their Stockton residence. During the January 21, 2014, search of their residence, law enforcement recovered the stolen mail and found evidence indicating that the defendants were altering checks, and manufacturing credit cards. During the search, Trujillo and Perea successfully fled from law enforcement, and a high-speed chase ensued through Stockton residential streets. On March 7, 2014, Trujillo and Perea were arrested in San Jose. Upon arrest, the defendants were driving a stolen vehicle and were again in possession of a large quantity of stolen U.S. mail, checks, credit cards, and identification documents.
On May 15, 2014, Perea and Trujillo each pleaded guilty to three counts of aggravated identity theft. On October 2, 2014, Perea was sentenced to six years in federal prison.
This case was the product of an investigation by the U.S. Postal Inspection Service and the San Joaquin County Sheriff's Office, with assistance from the Stockton Police Department, the San Jose Police Department, the Placer County Sheriff's Office, and the Delta Regional Auto Theft Task Force. Assistant United States Attorney Michelle Rodriguez prosecuted the case.
Sonoma Man Sentenced to 37 Months in Prison for Wire FraudRead the Press Release
SAN FRANCISCO – Michael Thomas Hamilton, a/k/a Thomas Smith, was sentenced today to 37 months in prison and ordered to pay $426,911 in restitution for wire fraud, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
Hamilton, 49, of Sonoma, Calif., was indicted by a federal grand jury on Nov. 19, 2013. He was charged with 22 counts of mail fraud, wire fraud, and money laundering. On May 8, 2014, he pleaded guilty to two of the wire fraud counts.
In his guilty plea, Hamilton admitted that he engaged in a scheme to obtain money and property by means of materially false and fraudulent representations regarding Small Leaf, a book-selling business he owned and operated. Between February 2011 and continuing through October 2013, Hamilton solicited Small Leaf investors through Craigslist and other means. As part of the scheme, Hamilton falsely represented that: (1) investors would earn high rates of return through the sale of books on Amazon.com and other platforms; (2) if investors did not recoup their investment by a certain date, Small Leaf would reimburse the investor with interest of 10%; and (3) his book-selling business generated more than one million dollars in yearly revenue. In truth, Hamilton’s book-selling business generated a de minimus amount of revenue. To induce investors to turn over their money and to lull them into falsely believing their investment was profitable, Hamilton made periodic payments to investors, which he claimed were royalties earned on the sale of books through Amazon. Most of the payments made to investors, however, were from investments by new investors or additional investments by existing investors.
By October 2013, according to the plea agreement, Hamilton had solicited approximately $1,616,000 from more than 20 investors in California, Oregon, and Massachusetts.
The sentence was handed down by the Honorable William H. Orrick, United States District Court Judge, in San Francisco. Judge Orrick also sentenced the defendant to a three-year period of supervised release. The defendant, who is currently released on a $75,000 bond, will begin serving the sentence on Jan. 30, 2015. Judge Orrick also ordered a hearing on Jan. 15, 2013, at 1:30 p.m., to resolve additional restitution issues.
Robert S. Leach is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Mary Mallory and Bridget Kilkenny. The prosecution is the result of an investigation by the FBI.
Social Security Administration (SSA) Employee Admits Role in Conspiracy to Defraud the SSARead the Press Release
DALLAS — A former employee of the Social Security Administration (SSA) appeared in federal court in Dallas this morning and pleaded guilty, before Chief U.S. District Judge Sidney A. Fitzwater, to his role in a conspiracy to defraud the SSA, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Lead defendant Carwin Shaw, 33, of Arlington, Texas, pleaded guilty to one count of conspiracy to commit theft of government funds. He faces a maximum statutory penalty of five years in federal prison, a $250,000 fine and restitution. He will remain on bond pending sentencing, which is set for March 20, 2015, before Chief Judge Fitzwater.
Shaw, along with co-defendants Amanda Johnson, 35, April Harvey, 36, and Lanusha Lemmons, 25, all of Arlington, were each indicted in May 2014 on one count of conspiracy to defraud the U.S. and one count of theft of government funds. Lemmons pleaded guilty late last month to her role in the conspiracy and is scheduled to be sentenced on March 13, 2015. Johnson and Harvey are set for trial on January 12, 2015.
According to documents filed in the case, Shaw, who worked as a Service Representative in the SSA’s Mid-Cities Field Office, located in Grand Prairie, Texas, had access to the SSA’s electronic databases. He admitted that he made agreements with co-conspirators to illegally obtain SSA funds by manipulating SSA’s electronic databases to achieve multiple objectives.
In some instances, for example, he manipulated the verified income attributed to Supplemental Security Income beneficiaries that resulted in the issuance of larger payments than authorized, the issuance of payments when none were due, and the removal of legitimate overpayments posted to beneficiary’s record. Shaw further admitted using the SSA’s electronic systems that interface with the U.S. Treasury Department to issue duplicate checks to beneficiaries when only one check was due. Shaw would cut additional checks to the co-conspirators by alleging their initial check had been lost or stolen, split the second check with the co-conspirator and then access the system and waive the overpayment so that it would not be recovered from any future benefits. Each co-conspirator was the representative payee for one minor or otherwise incompetent Social Security beneficiary.
The loss to the SSA as a result of all of Shaw’s relevant conduct is approximately $78,165.
The case was investigated by the SSA’s Office of the Inspector General. The case is being prosecuted by Special Assistant U.S. Attorney Nicole Dana.
- Six Plead Guilty for Their Roles in Illegally Purchasing Firearms
Sentencings for November 25 - December 4, 2014Read the Press Release
Ignacio Garcia-Perez, 31, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on December 4, 2014, for illegal re-entry of a previously deported alien into the United States. Garcia-Perez was arrested in Jackson, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Adam Maggos, 33, of Rock Springs, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on December 4, 2014, for conspiracy to possess with intent to distribute, and to distribute, methamphetamine. Maggos was arrested in Rock Springs. He received 60 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Oscar Enriquez-Rios, aka Adrian Enriquez-Rios, 31, of Mexico, was sentenced by Federal District Court Alan B. Johnson on December 3, 2014, for illegal re-entry of a previously deported alien into the United States. Enriquez-Rios was arrested in Casper, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Christopher J. Butterfield, 25, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on December 2, 2014, for conspiracy to possess with intent to distribute, and to distribute, methamphetamine. Butterfield was arrested in Cheyenne, Wyoming. He received 60 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Cheyenne Police Department.
Rebecca Sue Pendley, 32, of Evanston, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on December 2, 2014, for conspiracy to possess with intent to distribute, and to distribute, methamphetamine. Pendley was arrested in Evanston, Wyoming.
She received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $250.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.Isaac “Trey” Johnson, 25, of Rock Springs, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on December 2, 2014, for conspiracy to possess with intent to distribute heroin. Johnson was arrested in Jordan, Utah. He received 87 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $900.00 fine and a $100.00 special assessment. This case was investigated by the U.S. Drug Enforcement Administration.
Kyle Barrus, 25, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on December 2, 2014, for possession of a firearm in furtherance of a drug trafficking crime. Barrus was arrested in Casper, Wyoming. He received 60 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $150.00 fine and a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Patrick Bennett, 28, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on November 25, 2014, for aiding and abetting mail fraud. Bennett was arrested in Casper, Wyoming. He received 46 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $261,199.69. This case was investigated by the Casper Police Department, the U.S. Postal Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Second Man Arrested and Charged in Manhattan Federal Court for Daytime Armed Robbery of Diamond District StoreRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James Higgins, Acting Special Agent-in-Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), and William J. Bratton, Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of a complaint charging LEON FENNER for the armed robbery of a store in the Diamond District of Manhattan on November 11, 2014. FENNER was arrested yesterday in Suitland, Maryland, and presented today in the United States District Court for the District of Maryland before U.S. Magistrate Judge Charles B. Day.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, on November 11th Leon Fenner – armed with a semiautomatic gun – committed a cold and calculated robbery of a jewelry store in the Diamond District during which he brazenly pistol-whipped a bystander. Thanks to the collaboration of law enforcement, Fenner was tracked down and apprehended and will now face justice.”
ATF Acting Special Agent-in-Charge James Higgins said: “The arrest of Mr. Fenner yesterday has even further dismantled the illegal activities of this violent and armed robbery crew. The teamwork and relentless investigative pursuit exhibited by the newly formed ATF-led SPARTA task force coupled with a focused prosecution team is extremely gratifying to be a part of. The unit’s performance in this case should be a stark reminder to the criminal element that law enforcement, especially here in New York City, will not tolerate brazen acts of violence.”
NYPD Commissioner William J. Bratton said: “The New York City Police Department, along with our law enforcement partners, will continue to track down each person responsible for this crime until all parties are in custody and held accountable.”
According to the allegations Complaint unsealed today in Manhattan federal court, it is alleged that:
On November 11, 2014, two men carried out an armed robbery of a jewelry store (the “Store”) on the 8th Floor of a building on 47th Street in the Diamond District of Manhattan. The Store is not open to the public but is a space where clients can view and purchase jewelry. At the time of the robbery, the owner of the store (the “Owner”) and three other individuals were present inside the Store. At approximately 2:20 in the afternoon – in broad daylight as the Veteran’s Day Parade proceeded nearby – LEON FENNER, the defendant, dressed in a suit, carrying a bag, and appearing to be a messenger, came to the door of the store, while a second man (“Perpetrator-2”) served as a lookout in the hallway. After entering, FENNER first said that he was there to serve the Owner of the Store with papers, and took two envelopes out of his bag before placing them on a desk. FENNER then took out a black semiautomatic gun and pointed it at the Owner and the others present and demanded that they give him all the jewelry in the Store. As the robbery was occurring, a relative of the Owner arrived and was let into the Store. FENNER pistol-whipped the Owner’s relative as he entered the Store. The Owner and the others present in the Store emptied more than $600,000 worth of jewelry from a safe and other locations and placed it into FENNER’s bag. FENNER, leaving the envelopes behind in the Store, left the scene with Perpetrator-2.
FENNER was identified based on, among other things, fingerprint analysis of the envelopes left in the Store and surveillance images.
FENNER, 58, of New York, New York, is charged with one count of armed robbery, which carries a maximum sentence of 20 years in prison, and one count of brandishing of a firearm in connection with that robbery, which carries a maximum sentence of life in prison, with a seven-year mandatory minimum sentence. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Rondu Frisby, a/k/a “Reef,” who was one of the individuals present in the Store at the time of the Robbery and a friend of the Owner, was arrested on November 17, 2014, and charged with conspiracy to commit the robbery, and aiding and abetting the brandishing of a firearm in connection with the robbery conspiracy. Frisby allegedly coordinated with FENNER to perpetrate the robbery.
Mr. Bharara praised the investigative work of the NYPD and the Joint Robbery Task Force, consisting of members of the NYPD, ATF, and the United States Marshals Service.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Russell Capone and Gina Castellano are in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Leon Fenner Complaint & Warrant (14 MAG 2572)
Second Former Judge Sentenced in Traffic Court CaseRead the Press Release
PHILADELPHIA – Thomasine Tynes, 71, of Philadelphia, PA, was sentenced today to 24 months in prison for lying about ticket fixing at Philadelphia’s former Traffic Court. A federal jury, on July 23, 2014, found Tynes, a former traffic court judge, guilty of two counts of committing perjury before the federal grand jury investigating the case.
In fashioning the sentence, U.S. District Court Judge Lawrence Stengel agreed with the government that Tynes attempted to obstruct justice during the trial by contacting, and attempting to influence, a key prosecution witness. Tynes contacted the witness multiple times during the trial, commenting on what witnesses were saying from the witness stand and on specific issues arising at trial. This contact included a personal visit to the witness’ home as well as numerous text messages to the witness. Tynes did this in violation of a United States Magistrate Judge’s bail conditions which forbade contact with witnesses in the case.
In addition to the prison term, U.S. District Court Judge Lawrence Stengel ordered a fine of $5,000, a $200 special assessment, and supervised release.This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Denise S. Wolf and Anthony J. Wzorek.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Second Defendant Pleads Guilty in Identity Theft Tax Refund Fraud SchemeRead 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 Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announce that Junior Thompson, 35, of Tamarac, Florida, pled guilty to one count of conspiracy to use unauthorized access devices, in violation of Title 18, United States Code, Section 1029(b)(2), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
Co-defendant Nick Caty, 44, of Tamarac, Florida, previously pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, from January 2014 through March 2014, the defendants engaged in an identity theft tax refund fraud scheme in which they caused 352 fraudulent tax returns to be submitted to the IRS using stolen personal identity information (PII). The defendants sought $945,554 in refunds for deposit onto prepaid debit cards. In February 2014, the defendants withdrew money from different prepaid debit cards registered in different people's names and loaded with fraudulent tax refunds. Caty and Thomson agreed to share in the proceeds together from the debit cards and they also transferred debit cards between each other. In March 2014, law enforcement executed a search warrant at the defendants’ business and residence in Broward County and found lists with over 4,000 individuals’ PII.
Court documents also state that from January 2012 through October 2013, Caty used stolen PII to file fraudulent tax returns to the IRS seeking approximately $1 million in fraudulently obtained refunds for deposit into bank accounts he controlled.
Thompson is scheduled to be sentenced on February 13, 2015 before U.S. District Judge James I. Cohn. At sentencing, Thompson faces up to five years in prison for the access device charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
Caty is scheduled to be sentenced on January 9, 2015. At sentencing, Caty faces up to twenty years in prison for the wire fraud charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
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.
Second Burlington County, N.J. Man Pleads Guilty to South Jersey Bank Robbery SpreeRead the Press Release
CAMDEN, N.J. - A Burlington Township, New Jersey, man today admitted seven bank robberies of South Jersey banks between November 2013 and January 2014, U.S. Attorney Paul J. Fishman announced.
David Glenn, 23, pleaded guilty before Chief U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him with seven counts of bank robbery.
According to documents filed in this case and statements made in court:
Glenn robbed the following New Jersey banks on the dates below:
Beneficial Savings Bank
Willingboro
Nov. 14, 2013
Willingboro
Nov. 26, 2013
PNC Bank
Mount Laurel
Nov. 29, 2013
3rd National Bank
Delran
Dec. 12, 2013
Roma Bank
Delran
Dec. 12, 2013
TD Bank
Bellmawr
Jan. 8, 2014
PNC Bank
East Windsor
Jan. 8, 2014
Glenn admitted he robbed the banks with Shalir Hall, 21, of Edgewater Park, New Jersey. The two men took turns going into the banks and staying in the getaway vehicle.
The charges to which Glenn pleaded guilty each carry a maximum potential penalty of 20 years in prison and a $250,000 fine. In addition, Glenn’s plea agreement also requires him to make full restitution to each of the banks. Sentencing is scheduled for March 13, 2015.
Hall pleaded guilty before Judge Simandle on Nov. 14, 2014, and is currently scheduled for sentencing on Feb. 27, 2015. Both defendants have been in custody since Jan. 15, 2014, when they were detained on charges filed by the Burlington County Prosecutor’s Office.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agents in Charge Aaron T. Ford and Edward J. Hanko in Newark and Philadelphia, respectively, with the investigation leading to today’s guilty plea. He also thanked the Camden County Prosecutor’s Office and the Burlington County Prosecutor’s Office; the Burlington County Sheriff’s Department Warrant Unit; and the U.S. Marshals Service New York/New Jersey Regional Fugitive Task Force; as well as the East Windsor Township Police Department, Willingboro Police Department, Maple Shade Police Department, Delran Township Police Department, Mount Laurel Police Department, Philadelphia Police Department and the Hazelton, Pennsylvania Police Department for their work on the case.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney's Office Criminal Division in Camden.
14-425
Defense counsel: Lisa Evans Lewis Esq., Assistant Federal Public Defender, Camden
Glenn, David Information
San Gabriel Man Sentenced to Federal Prison in Scheme in Smuggling Protected Turtles from U.S. to Hong KongRead the Press Release
LOS ANGELES – A San Gabriel man who attempted to smuggle nearly four dozen turtles from Southern California to Hong Kong has been sentenced to federal prison.
Kwong Wa Cheung, 36, was sentenced Tuesday to two months in federal prison. Following the completion of the prison term, Cheung will be on supervised release for two years, during which time he will serve two months in a residential re-entry center (a “halfway house”) and perform 500 hours of community service at an animal shelter.
Cheung was sentenced by United States District Judge John F. Walter, who also ordered the defendant to pay a $12,000 fine.
When Cheung attempted to smuggle the 46 turtles and tortoises to Hong Kong, he brought three boxes containing the animals to a United States Postal Service facility in San Gabriel. Cheung used a fake name and address on the packages, and declared that the content of the packages were “Toys (Acces Model).” The fake name that Cheung used aroused suspicion, and the Postal Service refused to ship the packages.
Because he used a fake name, the Postal Service could not locate Cheung and it began processing the undelivered packages for shipment to a “dead mail” facility in Georgia. But, after several days, at least one of the packages began to emit a strong odor because one of the now-dead turtles was already decomposing. When a Postal Inspector opened one of the packages, he found the reptiles packaged in athletic socks. Subsequent investigation allowed authorities to link Cheung to the mislabeled packages.
The turtles being smuggled were 26 Eastern Box turtles and 20 African Spurred tortoises. Both species are protected under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
Cheung pleaded guilty in August to one count one of mislabeling wildlife intended for foreign commerce.
Judge Walter ordered Cheung to begin serving his sentence on or before February 15, 2015.
The case was investigated by the U.S. Fish and Wildlife Service and the United States Postal Inspection Service. The Los Angeles Zoo and Botanical Gardens provided assistance in identifying the species.
Release No. 14-156
Sacramento Man Indicted for Tax Preparation FraudRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 13-count indictment today against William Glenn Green, 48, of Sacramento, charging him with assisting in the preparation of false tax returns, United States Attorney Benjamin B. Wagner announced.
According to court documents, Green was a tax preparer and assisted eight taxpayers in preparing 13 fraudulent tax returns claiming over $150,000 in false deductions and credits to which he knew the taxpayers were not entitled.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Christopher S. Hales is prosecuting the case.
If convicted, Green faces a maximum statutory penalty of three years in prison and a $100,000 fine for each count. 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.
Sacramento Area Businessman Charged with Evading $5.6M in Customs Duties on Footwear Imported from ChinaRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 27-count indictment today against Thomas Romeo, 51, of Sacramento, charging him with a scheme to defraud the United States by evading customs duties owed by his Citrus Heights import business, United States Attorney Benjamin B. Wagner announced. Romeo is charged with conspiracy to defraud the United States, four counts of wire fraud, 11 counts of entry of falsely classified goods, and 11 counts of entry of goods by means of a false statement.
Romeo owned and operated Romeo & Juliette Inc., a company that imported footwear manufactured in China and distributed under the brand names BearPaw and Attix. According to the indictment, from at least 1994 through 2011, Romeo engaged in a scheme to avoid paying the full amount of duty owed on the shoes by having employees and others create false invoices that substantially undervalued the footwear that was being imported, sometimes at 50 percent of the actual value and other times even less. Romeo had his employees submit the false invoices to U.S. Customs for purposes of calculating the customs duties and fees Romeo & Juliette was required to pay. Romeo allegedly avoided paying approximately $5.6 million in customs duties legally owed to the United States.
According to the indictment, during the course of the investigation, Romeo submitted to federal agents a false document that attempted to justify the lower duty that Romeo & Juliette paid to the United States. He also instructed employees to make false statements to federal investigators about the value of the footwear that was imported.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Todd A. Pickles is prosecuting the case.
If convicted, Romeo faces a maximum statutory penalty of 20 years in prison and a $250,000 fine or twice the loss or gain caused by the fraud on the wire fraud counts. The maximum statutory prison term is five years on the conspiracy count and two years for causing the entry of goods falsely classified and causing the entry of goods by false statements. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Rochester Man Arrested and Charged with Stealing Almost $1,000,000 from BrotherRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Mark Saile, 57, of Rochester, NY, was arrested and charged by criminal complaint with mail and wire fraud, and identity theft, in connection with a scheme in which the defendant allegedly defrauded his brother of almost $1,000,000. The mail and fraud charges carry a maximum sentence of 20 years in prison, and a fine of $250,000, and the identity theft charge carries a mandatory minimum sentence of two years in prison.
Assistant U.S. Attorney, Richard A. Resnick, who is handling the case, stated that according to the complaint, the defendant’s brother, Robert Saile, who resides in Redmond, Washington, worked for Microsoft, Inc. for a number of years. Robert Saile set up a 401(K) retirement account with Fidelity Brokerage Services, LLC, comprised of Microsoft stock and Fidelity money market funds.
Between July 26, 2012 and June 20, 2014, Mark Saile contacted Fidelity numerous times pretending to be his brother. During those contacts, the defendant was able to trick Fidelity into transferring approximately $960,000 from Robert Saile’s 401(k) retirement account to a bank account his name. Robert Saile was unaware that his brother was stealing money from his retirement account. The defendant also changed the email and mailing addresses on file at Fidelity so that all correspondence from Fidelity would be sent to him.
Mark Saile made and initial appearance today before U.S. Magistrate Judge Marian W. Payson. The defendant is due back in court on February 2, 2015 at 9:00 a.m.
The criminal complaint is the culmination of an joint investigation on the part of the United States Postal Inspection Service, under the direction of Shelly Binkowski, Inspector in Charge, Boston Division, United States Postal Inspection Service, the Internal Revenue Service, under the direction of Shantelle Kitchen, Acting Special Agent in Charge, New York Field Office, the Federal Bureau of Investigation, and the New York State Police, under the direction of Major Scott Crosier.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Rochester Attorney Pleads Guilty to Obtaining A Controlled Substance by MisrepresentationRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Salvatore J. Marcera, Jr., 54, of Rochester, NY, pleaded guilty before U.S. District Judge Frank P. Geraci, Jr. to obtaining a controlled substance by misrepresentation. The charge carries a maximum penalty of four years in prison, a fine of $250,000, or both. The defendant will also pay restitution in the amount of $1,965.71 to Excellus BlueCross BlueShield.
Assistant U.S. Attorney Frank H. Sherman, who handled the case, stated that on July 28, 2006, the defendant was a sole practitioner attorney in Rochester. Marcera obtained prescriptions from a medical doctor, including OxyContin and Roxycodone, both of which contain oxycodone, a Schedule II controlled substance. The defendant did this on behalf of his brother, who was incarcerated in the Monroe County Jail at the time. In order to obtain the prescriptions, Marcera claimed that the drugs were medically necessary for his brother, knowing that in fact the prescriptions were not medically necessary.
After obtaining the prescriptions, the defendant then gave them to another family member knowing that family members would arrange to have the prescriptions filled at a pharmacy on behalf of Marcera’s brother. The prescriptions were subsequently filled at a pharmacy and paid for by Excellus BlueCross BlueShield.
As part of the same case, Marcera was previously convicted of filing a false personal income tax return for tax years 2004 through 2007 by understating the gross receipts of his law practice. The defendant was sentenced in March 2014 to five years of probation, including one year of home confinement, on the tax charges. Marcera also was ordered to pay restitution to the Internal Revenue Service in the amount of $104,074.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, and Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office.
Sentencing is scheduled for March 2, 2015, at 9:30 a.m. before Judge Geraci.
Richard Ammar Chichakli, Co-Conspirator of International Arms Dealer Viktor Bout, Sentenced in Manhattan Federal Court to Five Years in Prison on Money Laundering, Wire Fraud, and Conspiracy ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that RICHARD AMMAR CHICHAKLI, an associate of convicted international arms dealer Viktor Bout, was sentenced today in Manhattan federal court to five years in prison. CHICHAKLI, who was arrested in Australia in January 9, 2013, and then extradited to the United States in May 2013, was convicted on December 13, 2013, following a four-week jury trial, of conspiring with Bout and others to violate the International Emergency Economic Powers Act (“IEEPA”) by attempting to purchase commercial airplanes from American companies in violation of U.S. sanctions. CHICHAKLI was also found guilty of money laundering conspiracy, wire fraud conspiracy, and six separate counts of wire fraud, in connection with the attempted aircraft purchases. U.S. District Judge William H. Pauley III, who presided over the trial, imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Richard Chichakli conspired to violate international sanctions by attempting to buy commercial aircraft from an American company, even though it was illegal for that company to do business with him. He illegally tried to conceal his own identity and the involvement in the transactions of international arms trafficker Viktor Bout. Now Richard Chichakli will again be engaged in the same enterprise as Viktor Bout: serving time in a federal prison.”
According to evidence at trial and documents previously filed in Manhattan federal court:
CHICHAKLI conspired with Viktor Bout and others to violate IEEPA by engaging in prohibited business transactions with companies based in the United States. The focus of these transactions was the purchase of commercial airplanes for a company that Bout and CHICHAKLI controlled, and the ferrying of those aircraft to Tajikistan. At the time of these unlawful transactions, both CHICHAKLI and Bout had been designated by the U.S. Treasury Department as Specially Designated Nationals (“SDNs”), which meant that individuals and businesses in the United States were prohibited from engaging in financial transactions with them. CHICHAKLI sought to evade these SDN sanctions by, among other things, concealing his identity and his SDN listing, and by concealing Viktor Bout’s involvement in the airplane transactions. In connection with this fraudulent scheme, CHICHAKLI helped to make a series of wire transfer payments, totaling more than $1.7 million from overseas bank accounts into accounts in the United States.
CHICHAKLI was convicted of one count of conspiring to violate IEEPA, one count of money laundering conspiracy, one count of wire fraud conspiracy, and six counts of wire fraud. In addition to a prison term of five years, CHICHAKLI was sentenced to two years of supervised release, was ordered to pay forfeiture in the amount of $1.7 million and was ordered to pay a $900 special assessment fee.
CHICHAKLI’s co-conspirator, Viktor Bout, is currently serving a 25-year prison term as a result of his November 2011 conviction in this District in connection with his conspiring to sell millions of dollars of weapons to a designated foreign terrorist organization.
Mr. Bharara praised the outstanding investigative efforts of the Special Operations Division of the Drug Enforcement Administration (“DEA”), and specially thanked the DEA Canberra Country Office, and the DEA Digital Evidence Laboratory. Mr. Bharara also thanked the Australian Federal Police, the Victoria State Police, and the Australian Attorney General’s Department, as well as the U.S. Department of Justice Office of International Affairs and National Security Division, the United States Department of the Treasury, Office of Foreign Assets Control, and Interpol.
The case is being handled by the Terrorism and International Narcotics Unit. Assistant United States Attorneys Christian R. Everdell, Ian McGinley, and Jenna M. Dabbs are in charge of the prosecution.
Prior Federal Offender Charged in Bank Robbery SpreeRead the Press Release
BOSTON – A previously convicted federal bank robber, most recently living in Brockton, was charged today with robbing five banks and attempting to rob a sixth.
James Patterson, 46, was charged today with five counts of bank robbery and one count of attempted bank robbery while on supervised release. According to court records, in 2001, Patterson was convicted in U.S. District Court in Boston of bank robbery and sentenced to 151 months in federal prison and three years of supervised release.
The indictment alleges that between April 16, 2014, and July 20, 2014, Patterson robbed the Beverly Bank on Dodge Street in Beverly, the People’s United Bank on Dodge Street in Beverly, the Century Bank on Fellsway West in Somerville, the South Shore Bank on Turnpike Street in Stoughton, and the North Shore Bank on Highland Avenue in Salem. Court filings allege that, on each occasion, the robber was wearing sunglasses and latex or rubber gloves and covering his lower face with a bandana or clothing. After entering each bank, Patterson allegedly announced that it was a robbery, told those present to put their hands up, and demanded large bills.
On Aug. 4, 2014, federal agents, who were conducting physical surveillance on Patterson, arrested him as he allegedly approached and attempted to rob the Century Bank on Cambridge Street in Burlington. Patterson was on federal supervised release during all of the events.
The charging statutes provide a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, and restitution. The charging statutes also provide an additional consecutive sentence of no greater than 10 years in prison if the offense was committed while on federal supervised release. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Alexander H. Berlin of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
President of Local Defense Contractor Charged with Bribery and Making False Statements in Connection with Sales to the MilitaryRead the Press Release
Oklahoma City, Oklahoma – CHRISTOPHER HOUSTON HENSLEY, 56, of Yukon, Oklahoma, has been indicted by a federal grand jury and charged with bribing a public official, conspiracy to commit bribery, and making false statements to the federal government, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Hensley is the founder and president of Aerochem, Inc., based in Oklahoma City. Aerochem manufactures paint remover ("depaint") products, and it sold these products to Tinker Air Force Base ("Tinker") and other military bases for several years. The indictment alleges that Hensley developed a relationship with the depaint section chief for an aircraft maintenance squadron at Tinker. According to the indictment, from around 2005 to 2008, Hensley provided several items of value to the section chief, including cash to purchase a wedding ring and a bass boat. The indictment further alleges that Hensley conspired, from 2008 to 2012, with a former Aerochem employee to bribe the section chief by providing meals, alcohol, trips to gentlemen’s clubs, and cruise tickets. According to the indictment, Hensley and the other Aerochem employee also purchased a boat for $7,500 in 2010 for the section’s chief’s use. It is further alleged that in 2011 and 2012, the other Aerochem employee, with Hensley’s knowledge, made routine cash payments, of approximately $300 to $500, to the section chief based on how much depaint product Tinker was buying from Aerochem.
The indictment also alleges Aerochem had a similar relationship with a supervisor of a division at Corpus Christi Army Depot that stripped paint off helicopter parts used by the U.S. military. According to the indictment, Hensley and the former Aerochem employee provided entertainment, wire transfers, and more than $3,000 in cash to the Corpus Christi supervisor in exchange for the supervisor’s favorable treatment of Aerochem’s business interests.
Finally, the indictment alleges that Hensley falsely recertified to the federal government that a certain Aerochem product, Aerostrip 5182, met qualification requirements for sales to military bases. According to the indictment, Hensley twice provided false certifications: in 2011 to the Department of the Air Force, and in 2013 to the Corpus Christi Army Depot. The indictment alleges that in both cases, Hensley did not have laboratory testing reports showing the Aerochem product had actually passed all military conformance standards for the depaint product.
The indictment charges Hensley with three counts of making a bribe to the Tinker depaint section chief. Those counts separately allege that Hensley provided the section chief (1) in 2007 with $1,200 to buy a wedding ring, (2) in 2009 with approximately $1,100 in cruise tickets, and (3) in 2010 with a $7,500 boat in Aerochem’s name for his use, in exchange for the section chief’s favorable treatment of Aerochem business interests. The indictment also charges Hensley with conspiring, from 2008 to 2012, with a former Aerochem employee to make bribe payments to the Tinker employee and the CCAD employee. In addition, Hensley is charged with two counts of making false statements to the federal government about Aerostrip 5182’s certification with military performance specifications.
If convicted, Hensley faces a prison sentence of up to 15 years for each bribery count, and up to 5 years for the conspiracy count and each false statement count. Hensley could also receive an additional $250,000 fine on each count if convicted. The public is reminded that the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
These charges are the result of an investigation conducted by the U.S. Air Force Office of Special Investigations, Federal Bureau of Investigation, and U.S. Army Criminal Investigation Command. The case is being prosecuted by Assistant U.S. Attorney Chris M. Stephens.
Reference is made to court filings for further information.