Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Friday 17 October 2014
Second Individual Charged in Armed Robbery of Greece JewelerRead the Press Release
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Jessica Moscicki, 24, was arrested and charged by criminal complaint with possession and brandishing of a firearm in furtherance of a crime of violence, obstructing commerce by robbery and aiding and abetting a federal offense. The robbery charge carries a maximum sentence of 20 years in prison and a fine of $250,000. The possession and brandishing of a firearm in furtherance of a crime of violence charge carries a minimum sentence of seven years in prison, a maximum of life, and a $250,000 fine.
Assistant U.S. Robert A. Marangola, who is handling the case, stated that on October 7, 2014, Moscicki and co-defendant Clarence Lambert are accused of participating in a home invasion robbery of a jeweler in the Town of Greece. According to the complaint, during the robbery, the jeweler and his wife were pistol whipped and locked in a closet. The perpetrators are accused of stealing in excess of $200,000 in cash, diamonds, and luxury watches.On October 17, 2014, following police surveillance, Moscicki was pulled over while driving on Niagara Falls Boulevard in Amherst, NY. According to the complaint, during the investigation the defendant was positively identified as going to the home of the victims five days before the robbery and asking for a person the jeweler never of. The complaint furthers states that Moscicki was with Clarence Lambert on October 14, 2014 when he attempted to sell a Rolex watch stolen during the home invasion at a pawn shop in Rochester. The defendant drove away from the pawn shop in the same vehicle that she was driving when pulled over by Amherst Police.
The defendant made an initial appearance this afternoon before U.S. District Judge Frank P. Geraci, Jr. She is being detained and is due back in court on Wednesday October 22, 2014 at 10:00 a.m. before U.S. Magistrate Judge Marian W. Payson.
The criminal complaint is the culmination of an investigation on the part of the Greece Police Department, under the direction of Chief Patrick Phelan, Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of James S. Higgins, Special Agent in Charge, New York Field Division, the Federal Bureau of Investigation, the New York State Police, under the direction of Major Scott Crosier, and the Rochester Police Department under the direction of Chief Michael Ciminelli.Russellville Man Sentenced for 21 Firearms, MethRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Russellville, Mo., man was sentenced in federal court today for illegally possessing firearms and methamphetamine.
Emmanuel Guillen, 22, a citizen of Mexico residing in Russellville, was sentenced by U.S. District Judge Brian C. Wimes to 11 years and three months in federal prison without parole.
On June 3, 2014, Guillen pleaded guilty to possessing methamphetamine with the intent to distribute and to being an illegal alien in possession of 21 firearms.
On March 20, 2014, law enforcement officers executed a search warrant at Guillen’s residence. Officers found a box in a bedroom closet that contained five plastic containers of methamphetamine, weighing a total of 625 grams. A small safe was also found inside the closet, which contained $13,168; when officers searched Guillen, he had $2,504 in his wallet.
During the search, there were three vehicles located outside – two parked in the driveway, and one in the detached garage underneath a tarp. The vehicle in the garage, a 2010 Chevrolet Equinox, had been reported stolen from Waynesville, Mo. One of the vehicles in the driveway, a 2003 GMC Sierra pickup, had an illegally modified Savage combination gun (.410/.22 caliber) under the driver’s seat. The Savage firearm had been cut down to a barrel length of less than 12 inches, and the serial number had been ground off. In the other vehicle in the driveway, a 2004 GMC Sierra pickup, two bags containing a total of 60 grams of methamphetamine were located.
In the residence and in the two vehicles in the driveway officers also discovered six handguns, five shotguns, a sawed-off shotgun with the serial number ground off and eight rifles.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cole County, Mo., Sheriff’s Department, MUSTANG (the Mid-Missouri Unified Strike Team and Narcotics Group), and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Robert J. Shubert, Sr. Sentenced on Violation of the Arms Export Act and Possession of Pipe BombsRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Robert J. Shubert Sr., age 49, from Warner Robins, Georgia was sentenced on October 14, 2014, by the Honorable Marc T. Treadwell, United States District Judge, in Macon, Georgia to a total of six and a half years in prison following his earlier plea of guilty to one count each of conspiracy to violate and violation of the Arms Export Control Act as well as one count of possession of an unregistered firearm.The investigation in this case revealed that Mr. Shubert conspired with a foreign national between June 2006 and December 2011 to export defense articles to a foreign nation without the proper authority or license. He purchased the defense articles from various legitimate distributors and shipped them to a foreign nation at a considerable profit to himself. To facilitate the scheme he also prepared false documents regarding the contents to be exported to his foreign co-conspirator. These acts formed the basis of the Arms Export Control Act violations.
Additionally, search warrants executed on homes owned by Mr. Shubert in Warner Robins, Georgia, and in Wisconsin revealed more than eighty (80) unregistered destructive devices, better known as pipe bombs. These resulted in the possession of an unregistered firearm count.
District Court Judge Marc T. Treadwell was not persuaded by Mr. Shubert’s statements of remorse, sentencing him to seventy-eight (78) months imprisonment, the top of the available range under the United States Sentencing Guidelines. The Court also imposed a fine of fifteen thousand dollars ($15,000.00) and ordered forfeiture of one hundred and forty seven thousand eight hundred and ninety two dollars ($147,892.00). The Court prohibited Shubert from leaving the United States and ordered his passport be surrendered to the State Department, as well.“Robert J. Shubert showed a total disregard for the laws of the United States of America and the potential harm the defense articles he exported could pose to others. He allowed his personal enrichment to guide his conscience. The possession of more than eighty (80) pipe bombs at the time of his arrest is equally disturbing to the Government, ” said United States Attorney Michael Moore.
The case was investigated by the Federal Bureau of Investigation and Homeland Security Investigations. Deputy Criminal Chief of the United States Attorney’s Office for the Middle District of Georgia, Tamara Jarrett, handled the prosecution for the United States. The case was also worked by prosecutors from the Department of Justice National Security Division's Counterespionage Section.
Inquiries regarding the case should be directed to Pamela Lightsey at the United States Attorney’s Office (478/621-2603).
Remarks by U.S. Attorney Damon P. Martinez on the Occasion of his Investiture as the 45th U.S. Attorney for the District of New MexicoRead the Press Release
Chief Judge [M. Christina] Armijo, Judges of our United States District Court. May it please the Court. Good afternoon.
Chief Judge Armijo, on behalf of the Department of Justice, the U.S. Attorney’s Office for the District of New Mexico and myself, thank you for permitting us to hold this ceremony in the U.S. Courthouse. Thank you also, Chief Judge Armijo, for presiding over this investiture ceremony.
Your Honors, being familiar with the Court’s crushing work load, I am very grateful to each of you for taking the time to be here.
Judge [James A.] Parker, thank you administering the Oath of Office to me. I asked Judge Parker to do me this honor because he was one of the first judges I appeared before as a young Assistant U.S. Attorney. Since then, I have viewed him as a person who is gracious, courteous and respectful to all who appear before him regardless of status or stature.
General Andrew Salas, thank you for being here and for the privilege of having the New Mexico National Guard’s Honor Guard present the colors. They are the citizen soldiers of New Mexico, and they represent the best of our proud military tradition.
Ross and Kristin Daugherty, thank you for performing here this afternoon. Ross and I, together with more than 400 other New Mexicans, were deployed with the New Mexico National Guard to Sinai, Egypt, in 2012. On Friday afternoons during that deployment, we had religious services and during those services I learned that Ross was the only one amongst us who could carry a tune. He had a voice I could only describe as “angelic,” and I began to look forward to Friday afternoons because hearing Ross sing made New Mexico seem a little closer to me. Today is the first time I have heard Ross sing since we left the Sinai. Thank you, Ross and Kristin.
Senator [Tom] Udall, you and Senator [Martin] Heinrich recommended me to the President of the United States, the leader of the free world, for this position. In essence, you vouched for me and I am eternally grateful for your confidence in me. I know that I have a great responsibility to uphold and I will do my best to live up to the trust you have placed in me.
Senator Udall, it is a great honor to have you here today. Thank you for your kind remarks today, and for also setting an example which I have never forgotten. When you were the Attorney General for New Mexico and I worked for you as an Assistant Attorney General, I wrote an advisory letter to a city here in the State that ended up on the front page of the local paper. Several days later, an editorial criticized you for my advisory letter. When I saw you the following week, I apologized to you for the criticism you had received. In response, you asked me if I had applied the appropriate case law and conducted the proper analysis. I said I did. You then asked me if I had run it by my supervisor and did he approve it. And I said I did. You then said, “You have nothing to worry about.” That incident made an impression on me that has guided my career and this is the tone I intend to set at the U.S. Attorney’s Office.
I am now into my fifth month as U.S. Attorney. This ceremony was postponed until now because, at the beginning of my tenure, we had to focus our energies on important matters in our community rather than this ceremony. It has become apparent to me, however, that the community needs to know – to the extent that I can talk about them – the priorities of the U.S. Attorney’s Office. The community also needs to know that, particularly in times of budget constraints, it is important that the U.S. Attorney’s Office maintain and strengthen partnerships with other members of the DOJ community in order to better serve our community.
Civil rights are a priority for the Department of Justice and the U.S. Attorney’s Office here in New Mexico. [Acting Assistant Attorney General for the Justice Department’s Civil Rights Division] Molly Moran’s presence here today is a testament to the Justice Department’s commitment to civil rights and the Department’s commitment to working with this community. Thank you, Molly, for not only being here today, but also for the great partnership our offices have enjoyed as they work together.
As most of you are aware, the Department of Justice is in the process of negotiating a court-enforceable agreement with the City of Albuquerque to reform the Albuquerque Police Department. From the day DOJ released the findings of its investigation into APD, I have continuously stated that the vast majority of our officers are honorable public servants who risk their safety and well-being for the public good every day. I have said this because it is true. Nevertheless, there exist real systemic problems within APD that urgently need to be addressed. I am confident that we soon will reach an agreement that will provide the blueprint for reforming APD and that will result in constitutional policing while giving our officers the support they need to fight crime effectively.
In addressing this matter, we know what the answer to the question is. The difficult part will be in finding the courage to reach that answer. The answer is “trust.” Our police officers have to trust that the community supports them. And our community has to trust that our police officers are properly trained and are acting in the interests of keeping us safe.
Here with us today are representatives from many sectors of our community who have important stakes in the reform process: Mayor Richard Berry, Council President Ken Sanchez, Chief Gorden Eden and Assistant Chief Robert Huntsman, Stephanie Lopez and Shaun Willoughby who are the President and Vice President of the Albuquerque Police Officers Association, Jewel Hall of the Martin Luther King, Jr., Memorial Center, Peter Simonson of the ACLU of New Mexico and APD Forward, community advocates Maria Bautista, Nyira Gitana and John Cordova, Bro. Gerard and Bro. Charles, who work with the homeless, and all of you.
We also are joined by Steve and Renetta Torres, who lost their son Christopher Torres to an APD officer involved shooting in April 2011.Since we are altogether here today, let me tell you about a major step that has already been taken in establishing that trust. On May 9, 2014, about a month after DOJ released its findings on APD, I sat in on a meeting that included Mayor Berry and Steve Torres. During that meeting, Steve Torres offered his assistance to the Mayor and said he stood ready to help in reforming the APD. When I asked Steve Torres if I could share that story today, Steve said yes, he said, “My son would have wanted me to do this.”
In moving forward, I ask that we keep Steve Torres’ incredibly moving gesture as the beacon by which we navigate. If Steve Torres can do it, then we should all be willing to take that first step towards rebuilding the foundation of trust between our police officers and our community that is essential for effective, productive law enforcement.
As many of you know, this APD matter is civil in nature and so we have had no law enforcement agency assigned to assist us. When we have required assistance, the U.S. Marshals Service has readily stepped up. Thank you, Marshal [Conrad] Candelaria for the invaluable support you and your Deputies continue to provide.
Because of where our State is located, we have a had comprehensive border strategy which has traditionally focused on the investigation and prosecution of immigration and drug crimes.
When it comes to immigration-related crime, the heart of our prosecution strategy focuses on those who are illegally in this country after having been deported and who have committed violent crimes or other serious felonies, like a murder or rape. We do this with our Homeland Security partners, the U.S. Border Patrol and U.S. Customs and Border Protection.
When it comes to our drug prosecution strategy, we regularly partner with DEA, represented here by Special Agent in Charge Will Glaspy, HSI, represented by Assistant Special Agent in Charge Kevin Abar, and IRS, represented by Supervisory Special Agent Chris Wajda, as well as our many other federal, state and local partners as we target major drug trafficking organizations.
Our border strategy, however, cannot be limited to taking on immigration and drug crimes. When we act to secure our border, we also help secure our nation’s security. Over the last four months, we have complemented our border strategy by adding a third component and establishing a national security/anti-terrorism section to the office. We must never forget that on June 3, 1945, right here in Albuquerque and just a few blocks away, the plans the first atomic bomb were turned over to Russian agents in exchange for $500. This understanding of history will inform the new section as it focuses on issues important to our national labs, the businesses that support the labs, and our military installations, and looks for effective ways of better protecting our national security as well as our country’s sensitive technology and information.
I want to thank Special Agent in Charge Carol Lee of the FBI, Director Gil Guaderrama of Transportation Security Administration, and Resident Agent in Charge Richard Ferretti of the Secret Service for their important efforts on the national security front.
Unfortunately our drugs problems are not limited to the border. New Mexico has long grappled with an epidemic of heroin and prescription drug abuse. On a per capita basis, we lead the nation in both heroin and prescription drug overdose deaths. Fortunately, many in our community are committed to taking on this serious problem, including Bernalillo County Commissioner Maggie Hart Stebbins who established the Bernalillo County Opioid Initiative. We will collaborate with that initiative and we have agreed in principle with Chancellor [Paul] Roth from the [University of New Mexico] Medical School to participate in a coordinated State wide effort to address this problem.
We will continue our “worst of the worst” anti-violence initiative. Under this initiative, we work with New Mexico’s District Attorneys and state, local and tribal law enforcement officers to target those criminals in our communities who commit a disproportionate amount of the crime. ATF, represented here by Assistant Special Agent in Charge Mark Murray, is the bedrock for this initiative. A number of our local partners in this initiative, including New Mexico State Police Chief Pete Kassetas, are also here.
District Attorney Francesca Estevez from Deming and District Attorney Mark D’Antonio from Las Cruces, thank you both for being here today, and for partnering with us on the “worst of the worst” initiative. To strengthen our bonds with the District Attorneys around the State and to enhance this program, we have launched a new initiative that contemplates designating a limited number of Assistant District Attorneys as Special Assistant U.S. Attorneys. These Special Assistant U.S. Attorneys will serve not only as a symbolic bridge between our offices but will also enable our District Attorneys to help us identify the “worst of the worst” in their communities for federal prosecution.
Cabinet Secretary Greg Myers of the New Mexico Department of Homeland Security and Emergency Management also joins us here today. Secretary Myers is in the process of re-building New Mexico’s “fusion center.” Secretary, it is important that you succeed in this mission. It is important for our state, county, local and tribal officers to have one place from which to receive important information and one place to send information so law enforcement efforts can be enhanced and properly coordinated. Your efforts will assist officers like San Juan County Sheriff Ken Christesen, Santa Fe Police Chief Eric Garcia, and Chief Kendall Vicenti of the Jicarilla Apache Nation. A viable “fusion center” will help make our law enforcement officers’ jobs easier and safer, and we are pleased to be assisting Secretary Myers in achieving that goal.
New Mexico is home to 22 Indian tribes and the U.S. Attorney’s Office is proud of the work at it does with each one of these tribes. When he was U.S. Attorney, [U.S. District] Judge [Kenneth] Gonzalez created and implemented an Indian Country Crimes Section and he left a proud legacy when it comes to bringing justice to New Mexico’s Indian Country. At a minimum, it is now my responsibility to continue that legacy and hopefully to build upon it. Because many of our tribes are small and because of jurisdictional limitations, our tribal governments often do not have the capability to prosecute cases arising from their communities. This means that the Indian Country Crimes Section must prosecute some very difficult cases from these communities. If we do not prosecute these difficult cases – cases ranging from murder to child sexual assaults to serious assaults – they will not be not be prosecuted at all. So we take on these tough cases, and we do so in partnership with the BIA, FBI and our tribal police departments and with the full support of our tribal leaders, including Governor Gil L. Vigil of the Eight Northern Indian Pueblos Council and President Ty Vicenti of the Jicarilla Apache Nation.
We will continue our pro-active outreach to our tribal communities. We have partnered with BIA to train tribal, local and state law enforcement officers so that they could be cross-commissioned by the BIA. This past year, almost 200 officers were cross-commissioned by the BIA. This is a force multiplier that enhances public safety in our tribal communities. We also will continue to have outreach with our Native American youth to emphasize the importance of education and the perils of getting involved with drugs, gangs, violence and firearms.
At the beginning of our ceremony, Lt. Governor [Antonio] Chewiwi from the Pueblo of Isleta delivered our invocation in Tewa, one of the languages of our Pueblo people. Lt. Governor Chewiwi, thank you for honoring us with your prayer and thank you for also being a leader in a new initiative being launched by the U.S. Attorney’s Office, the Pueblo of Isleta, and our Project Safe Neighborhoods Task Force. We will be implementing a reentry pilot program by the end of the year that focuses on tribal members who are being released from jail and transitioning back to pueblo life. It will focus on providing cultural and spiritual support and substance abuse treatment. A major goal will be to ensure that the basics of housing, food, transportation, and employment are met so that those who are reentering the Pueblo can focus on a future free from the problems that have plagued them in their pasts.
There are a couple more priorities I want to highlight today and those involve the outstanding work of our civil attorneys. U.S. Attorney’s Offices throughout the country have at least one “Affirmative Civil Enforcement” attorney who is charged with filing civil lawsuits on behalf of the United States to recover government money lost to fraud, waste and abuse. We have increased the resources in this area with the goal of identifying more of the fraud that is occurring at the taxpayers’ expense and returning that money to the government’s coffers.
We also have ramped up our affirmative environmental work with partners like the Fish and Wildlife Service, the Bureau of Land Management, the Forest Service and the Department of Agriculture because it is important that we preserve and protect our natural resources not only for our use and enjoyment now, but also for our future generations.
Before I close, I want to acknowledge a good friend of the U.S. Attorney’s Office, someone who represents an essential part of our criminal justice system, Steve McCue, the Federal Public Defender for the District of New Mexico. We all know that effective legal representation for all persons charged with crimes is critical to safeguarding justice and fairness in the criminal process. Thank you, Steve, for being here today.
In closing, I want to thank the women and men of the U.S. Attorney’s Office. They are hardworking, dedicated public servants, and they are the reason why the Office is able to take on all that I have talked about today. Let me give you a couple of examples who they are.
On Wednesday, the Attorney General recognized Glynette Carson McNabb in Washington, D.C., for exceptional service in Indian Country. Glynette supervises the Indian Country Crimes Section for the Office. From across the country, the Attorney General recognized only one person in this category this year. This tells you about the caliber of Glynette’s work, and the attorneys and support staff who work with her.
As another example, last year when I supervised the Organized Crime Section, I called an attorney on a Sunday afternoon and asked him a question concerning a matter that had just come up and required immediate attention. That attorney responded by coming into the office on that Sunday afternoon, working through the night, working through the day on Monday, and then into the night and did not leave until 3:00 a.m. on Tuesday, after he made sure that the matter was addressed. This is the type of teamwork and dedication the people I work with exhibit.
I have many friends here today. Some I have known since childhood, some I know from schools, and others from working together. Understanding that some of you have traveled great distances to be here today, I want to thank each one of you. Thank you for your friendship, your support, and your inspiration.
I also want to thank my mom Carmen, my wife Holly, my sons, and the rest of my family. Thank you for your support.
Your Honors, I know that the U.S. Attorney’s Office here in New Mexico has built up a reservoir of good will with the Court as the result of previous generations of U.S. Attorneys and Assistant U.S. Attorneys who have practiced before you. With this knowledge, I realize that it is now my responsibility to make sure that when we appear before you, as officers of the Court, we must always accurately represent the law, be fair to the facts, and speak candidly to the Court.
Thank you for the great honor of being able to appear before you.
Registered Sex Offender Pleads Guilty to Destroying an iPad and Hard Drive that Contained Evidence of his Attempts to Collect Child PornographyRead the Press Release
ALEXANDRIA, Va. – David Michael Fioramonti, 42, of Purcellville, Virginia, pleaded guilty today to obstruction of justice related to evidence of child pornography.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Joseph R. Price, Chief of the Town of Leesburg Police Department; and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Liam O’Grady.
According to documents filed with the Court, on December 31, 2013, several officers with the Leesburg Police Department observed Fioramonti in his car in the parking lot of a Sheetz gas station in Leesburg, Virginia. Fioramonti was using his iPad to access the Internet using Sheetz’s unsecured public WIFI. The officers determined that Fioramonti was a registered sex offender, and he was not allowed to access the Internet from an unapproved device. They approached Fioramonti and requested the iPad, but Fioramonti refused. He then began hitting the iPad on the gear shift of the vehicle, shattering the screen. He was arrested by the Leesburg Police Department and subsequently released. After failing to appear in court, an arrest warrant was issued for Fioramonti.
On February 11, 2014, Maryland State Police Officers encountered Fioramonti in a hotel room in Frederick, Maryland. Fioramonti barricaded himself in his hotel room and stated he had a weapon. While in the hotel room, Fioramonti removed the hard drive from his Toshiba laptop and destroyed it. The black hard drive had contained evidence of Fioramonti’s attempts to collect child pornography as well as information, such as screen names and IP addresses, of individuals who collect and share child pornography on the Internet.
Fioramonti was charged in a superseding information on October 17, 2014, with the obstruction of justice in violation. Pursuant to his guilty plea, he faces a maximum penalty of 20 years in prison when he is sentenced on February 6, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case was investigated by the Town of Leesburg Police Department and the FBI’s Washington Field Office. Assistant U.S. Attorney Matt Gardner is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney's Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-309.
Pair Indicted in Contract Fraud and Kickback SchemeRead the Press Release
CINCINNATI — A federal grand jury has indicted Rudy Rampertab, 45, and Suraj Patel, 34, of Ocoee, Fla. for their alleged connection with a $3.5 million shipping and packaging contract fraud scheme.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI) announced the charges today.
The indictment charges Rampertab and Patel with one count each of conspiracy to commit mail fraud and honest services fraud, 10 counts each of mail fraud and honest services fraud, 10 counts each of mail fraud, one count each of money laundering, and one count each of conspiracy to commit money laundering.
According to the indictment between 1988 and January 2011 Rampertab was an employee of a business that had offices in Cincinnati, Ohio. This business processed requests for the payment of invoices and mailed checks to vendors to pay for services rendered. Beginning in approximately 2000, Rampertab managed this businesses distribution center located in Carson, Calif. Rampertab supervised the movement of the company’s merchandise to distribution centers throughout the country.
From approximately July 2010 through January 2011, Rampertab and Patel allegedly conspired to divert the shipping and packaging business to companies established by Patel, and part of the profits were paid to Rampertab in the form of kickbacks.
Patel established several companies by the names of SAP Retail Transportation, Cost Plus Packaging, and Keshav Logistics (“Patel’s companies”). Rampertab obtained approval for Patel’s companies to become third party vendors without disclosing his financial interest in or personal connection to Patel’s companies. Rampertab reassigned the transportation contracts from established vendors to Patel’s companies. Rampertab also established a different process for Patel’s companies so that he could personally approve the invoices, according to the indictment.
It has been alleged that Patel’s companies improperly billed the business for services that were not rendered or double-billed the business. In addition, Rampertab and Patel conspired to have Patel’s companies sell large amounts of unnecessary packaging to the business, for which Rampertab approved the invoices.
According to the indictment, between July 2010 and January 2011, Patel’s companies received more than $3.5 million in shipping and packaging contracts from the business. After paying expenses, Patel’s companies generated approximately $1.4 million in net income.
Patel’s companies allegedly paid kickbacks to Rampertab in the form of payments made in the amount of $126,000 to relatives of Rampertab; a $13,000 cashier's check paid to Rampertab; payments in the amount of over $466,000 to Rampertab’s personal American Express accounts; and Rampertab’s cell phone.
In addition, Patel and Rampertab allegedly used the profits from this scheme and Patel’s companies to purchase real estate and vehicles in their names. Patel used the proceeds of the scheme to purchase a 2010 Aston Martin for $199,000 and sold it $150,000. The $150,000 proceeds were then deposited into a bank account established in Patel’s name and Rampertab was listed as the account beneficiary. Patel and Rampertab used $53,071.13 from that account to purchase property in Orlando, Florida that was titled in both of their names. Also, Patel and Rampertab allegedly used one of Patel’s companies to trade-in Rampertab’s Lexus in order to purchase a BMW. The BMW was purchased with a $61,000 check that was written on one of Patel’s company’s bank accounts.
An indictment is merely an accusation. All defendants are presumed innocent until and unless proven guilty.
Conspiracy to commit money laundering, mail fraud, and honest services fraud are all punishable by up to 20 years in prison and a fine of $250,000. Money laundering is punishable by up to 10 years in prison and a fine of $250,000.
The indictment also contains a forfeiture allegation realtive to the forfeiture of jewelry, art work, and six real properties.
"The IRS, along with our law enforcement partners, will vigorously pursue individuals that misuse their positions of trust and use kickback schemes to further their criminal activities," said Kathy A. Enstrom, Acting Special Agent in Charge, IRS, Criminal Investigation.
U.S. Attorney Stewart acknowledged the investigation by special agents of IRS-Criminal Investigation and the FBI, as well as Assistant United States Attorney Timothy S. Mangan who is representing the United States in this case.
Outlaw Motorcycle Gang member on the Run for 17 Years Arrested in MexicoRead the Press Release
United States Attorney James L. Santelle announced that United States Marshals have arrested Randy Mark Yager, aka “Mad” (age: 58), in Mexico. In 1997, Yager fled after he was indicted in the Eastern District of Wisconsin. Yager was the ATF's Most Wanted Fugitive in 1997, and was placed on the United States Marshals 15 Most Wanted list in 2004.
Yager is one of seventeen members and officers of the Outlaw Motorcycle Club who were charged with racketeering offenses. The indictment identifies Yager as the regional president of the Chicago Region of the Outlaws and the president and a member of the Gary Chapter of the Outlaws. Yager is charged under the Racketeer Influenced and Corrupt Organizations Act (RICO) with substantive racketeering and conspiracy to commit racketeering acts, in violation of Title 18, United States Code, Sections 1962 (c) and (d). The charges carry penalties of up to life in prison.
The indictment alleges that the Outlaws were a criminal organization whose members and associates were engaged in acts of violence including murder, robbery, arson, narcotics trafficking, and other serious offenses. According to the indictment, many of those acts were committed with the intent to control Outlaw territory and keep rival motorcycle gangs, including the Hell’s Angels, from gaining a foothold in the Midwest. Yager is alleged to have participated in racketeering acts that included conspiracy to commit murder at the Lancaster Speedway in Erie County, New York, where a member of the Hell’s Angels and a member of the Outlaws were each killed during the planned assault. He is also alleged to have participated in a conspiracy to commit murder at the Illiana Speedway in Lake County, Indiana, and in an act of robbery at a tavern in Cook County, Illinois.
Yager’s co-defendants have all been convicted, and five of them, including Kevin O’Neill, David Kadlec, Randall Miller, Carl J. Warnecke and Harvey Powers, were given life sentences.
In announcing Yager’s arrest and return to the United States, United States Attorney James L. Santelle stated: “The charges against this defendant remain today just as serious, extensive, and violent as they were when the Grand Jury issued them some 17 years ago. Mr. Yager will now face the consequences of those criminal actions that, like those of his co-defendants, compromised the safety and the security of our communities.” United States Attorney Santelle specially commended the United States Marshals Service and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives, along with the other law enforcement units, for their “outstanding highly professional, and unrelenting work in identifying the defendant’s whereabouts and accomplishing his return to face justice here in Eastern Wisconsin”.
"While Randy Yager attempted to evade federal law enforcement for nearly two decades, today's arrest signifies ATF's relentless pursuit of violent criminals across the nation,” said Special Agent in Charge of the St. Paul Field Division James C. Modzelewski. “Be clear that ATF in partnership with the U.S Marshals Service, U.S. Attorney's Office and local law enforcement, we will bring violent criminals to justice without regard for how many decades they attempt to evade the law."Yager, was apprehended Wednesday near Rosarito, Baja California, Mexico. The fugitive investigation for Yager gained momentum when U.S. Marshals were able to gather significant information on his possible location. The information was then forwarded to Mexican authorities, who responded to the location and encountered a man who fit Yager’s description. When Mexican authorities asked the man to identify himself, he initially said his name was “David” and produced several identification cards bearing the name David Michael Dorian. However, after additional questioning, the man later identified himself as Randy Yager.
Mexican authorities took Yager into custody and transported him to a facility in Tijuana where he was processed and positively identified. On Thursday, October 16, Yager was ordered expelled from Mexico to the U.S., where he was subsequently turned over to the U.S. Marshals. He is currently being held at the Western Regional Detention Facility in downtown San Diego, California.
“Yager was on the U.S. Marshals 15 Most Wanted list since 2004,” stated Kevin Carr, U.S. Marshal for the Eastern District of Wisconsin. “His arrest is a testament to the outstanding investigative work and tireless efforts of our deputies and our federal, state, and local partners who worked this case for years to bring Yager to justice.”
This case has been assigned to Assistant United States Attorney Carol L. Kraft who initially prosecuted this case.
Operators of Houston Area Diagnostic Centers Agree to Pay $2.6 Million to Settle Alleged False Claims Act ViolationsRead the Press Release
Two groups of Houston-based diagnostic centers have agreed to pay the United States a total of more than $2.6 million to settle allegations that they violated the False Claims Act, announced Acting Assistant Attorney General Joyce R. Branda for the Department of Justice’s Civil Division and U.S. Attorney Kenneth Magidson for the Southern District of Texas. The settlements were finalized without an admission of liability and without commencement of litigation.
One group of centers, which operates under the name One Step Diagnostic and is owned and controlled by Fuad Rehman Cochinwala, has agreed to pay $1.2 million. The payment is being made to settle allegations that it violated the Stark Statute and the False Claims Act by entering into sham consulting and medical director agreements with physicians who referred patients to One Step Diagnostic Centers.
The other group of centers, which is owned and controlled by Rahul Dhawan, has agreed to pay $1,457,686. This group consists of Complete Imaging Solutions LLC doing business as Houston Diagnostics, Deerbrook Diagnostics & Imaging Center LLC, Elite Diagnostic Inc., Galleria MRI & Diagnostic LLC, Spring Imaging Center Inc. and West Houston MRI & Diagnostics LLC. The United States alleged that these centers engaged in improper financial relationships with referring physicians and improperly billed Medicare using the provider number of a physician who had not authorized them to do so and had not been involved in the provision of the services being billed.
“The Department of Justice has longstanding concerns about improper financial relationships between health care providers and their referral sources, because such relationships can alter a physician's judgment about the patient's true health care needs and drive up health care costs for everyone,” said Acting Assistant Attorney General Branda. “In addition to yielding a recovery for taxpayers, this settlement should deter similar conduct in the future and help make health care more affordable.”
“These settlements totaling more than $2.6 million represent the continuing commitment of our office in combatting health care fraud,” said U.S. Attorney Magidson. “The U.S. takes these accusations seriously. Working within the whistleblower laws, we will continue to bring these cases to public view where tax payer money is being used improperly.”
The settlements announced today arose from a lawsuit filed by three whistleblowers under the qui tam provisions of the False Claims Act. Under that act, private citizens can bring suit on behalf of the government for false claims and share in any recovery.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $22.5 billion through False Claims Act cases, with more than $14.3 billion of that amount recovered in cases involving fraud against federal health care programs.
The case, United States ex rel. Holderith, et al. v. One Step Diagnostic, Inc., et al., Case No. 12-CV-2988 (S.D. Tex.), was handled by the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Southern District of Texas and Department of Health and Human Services - Office of Inspector General. The claims settled by this agreement are allegations only, and there has been no determination of liability.
- Operators of Houston Area Diagnostic Centers Agree to Pay $2.6 Million to Settle Alleged False Claim Act Violations
Omaha Woman Convicted of Theft of Government Property and Mail FraudRead the Press Release
United States Attorney Deborah R. Gilg announced that LaTosha Bolton, age 48, of Omaha, Nebraska, was convicted on October 16, 2014, after a jury found her guilty of theft of government property and mail fraud. The Honorable Laurie Smith Camp presided over the trial that was held this week in Federal District Court. Sentencing has been set for January 12, 2015. Ms. Bolton faces 20 years of imprisonment on the mail fraud conviction and 10 years imprisonment for the theft.
From 1993 until 2013 Ms. Bolton was receiving Supplemental Security Income benefits on behalf of one of her children. While it was clear the child did have a disability, by finding her guilty, the jury found that Ms. Bolton did not use the money for the benefit of her child as required by law. Ms. Bolton received $124,960.00 of government SSI funds and most of that money was sent through the United States mails.
The case was investigated by the Office of Inspector General, Social Security.
Ohio Man Charged with Defrauding Social SecurityRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a grand jury returned a one-count indictment charging Joyce L. Humes, age 62, of Dennison, Ohio, with one count of theft of government funds.
The indictment alleges that from on or about December 1, 2009, through October 31, 2013, Joyce L. Humes stole Social Security survivor benefits in the amount of $50,618 from the United States Social Security Administration to which she was not entitled.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Brian M. McDonough, following an investigation by agents of the Office of Inspector General of the United States Social Security Administration.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
November 2014 ElectionsRead the Press Release
LAFAYETTE, La.– United States Attorney Stephanie A. Finley advises the public today of the U.S. Attorney’s Office’s role during the upcoming November 4, 2014 and December 6, 2014 primary and general elections.
The Department of Justice’s Election Day Program is centered on deterring election fraud, discrimination at the polls and combating election violations. The goal is to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.
Early voting is October 21st to October 28th (except Sunday) from 8:30 a.m. to 6:00 p.m. for the November 4th primary election, and November 22nd to November 29th (except Sunday) from 8:30 a.m. to 6:00 p.m. for the December 6th general election. On November 4, 2014, the polls will open at 6:00 a.m. and close at 8:00 p.m., and on December 6, 2014, the polls will open at 7:00 a.m. and close at 8:00 p.m. Residents should contact their local Registrar of Voters’ Office to determine their voting location. If you would like to download a sample ballot or obtain other election information, visit the Louisiana Secretary of State’s web page at www.sos.la.gov/ElectionsAndVoting.
For those seeking to register to vote, registration is open throughout the year. Registration to be eligible to vote in the November 4th election has ended, but registration to be eligible to vote in the December 6th election is open until November 5, 2014. In Louisiana, eligibility to register to vote in an election ends 30 days before that election. To find out more, call the Louisiana Secretary of State’s Office at 225-922-0900.
Complaints of election fraud or voting rights violations should be directed to the FBI, who will have special agents available in each field office and resident agency throughout the country to receive allegations. The local FBI field offices can be reached by the public at the following telephone numbers: Shreveport at 318-861-1890 or Lafayette at 337-233-2164. For a complete list of FBI field offices in Louisiana visit www.fbi.gov/neworleans/contact-us/territory-jurisdictionThe U.S. Attorney’s Office can be reached by the public at 318-676-3600 (Shreveport) or 337-262-6618 (Lafayette).
Complaints about ballot access problems or discrimination can also be made directly to the Civil Rights Divisions Voting Section in Washington, D.C., at 1-800-253-3931 or 202-307-2767. The division’s email address is [email protected] and voter complaints also can be filed online at www.justice.gov/crt/complaint/votintake.
The Civil Rights Division=s Voting Section enforces six federal statutes. They are the Civil Rights Act, the Voting Rights Act of 1965, the Voting Accessibility for the Elderly and Handicapped Act of 1984, the Uniformed and Overseas Citizens Absentee Voting Act of 1986, the National Voter Registration Act of 1993, and the Help America Vote Act of 2002. For more information on the acts that the division enforces, visit www.justice.gov/crt/about/vot/overview.php.
New York City Men Charged with Drug Trafficking OffensesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced the filing of criminal charges on October 14, 2014 against Adolphus Butts, age 35, Timothy Smart, age 31, Ladu Tariq Kitching, age 28, and Cedrick Johnson, age 27, all of New York, New York. The Grand Jury in Scranton returned a nine-count Indictment filed in the United States District Court alleging that the above individuals conspired to distribute cocaine hydrochloride, cocaine base, (crack), and heroin in Luzerne and Lackawanna Counties between 2011 and 2013.
According to United States Attorney Peter Smith, the charges are the result of an investigation by the Federal Bureau of Investigation and the Pennsylvania State Police into the sale of illegal drugs at motels in Luzerne and Lackawanna Counties.
Prosecution is assigned to Assistant United States Attorney John Gurganus.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal drug trafficking conspiracy statute charged in this case is twenty years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Morris County, N.J., Plastic Surgeon Charged with Evading Taxes on More Than $10 Million in IncomeRead the Press Release
NEWARK, N.J. – A plastic surgeon with a practice in Basking Ridge, New Jersey, has surrendered to face charges that he fraudulently diverted millions in corporate earnings for his personal use, costing the United States nearly $3 million in tax revenue, U.S Attorney Paul Fishman announced today.
David Evdokimow, 54, of Harding Township, New Jersey, is charged by indictment with one count of conspiring to defraud the United States and four counts of personal income tax evasion and three counts of corporate tax evasion. He appeared in court Oct. 16, 2104, before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
According to the indictment unsealed today:
Evdokimow conducted his medical practice through a corporate entity known as De’Omilia Plastic Surgery P.C. (De’Omilia). He allegedly paid his personal expenses directly from De’Omilia’s corporate bank accounts while falsely attributing these expenses to De’Omilia’s corporate operations. By falsely characterizing personal expenses as corporate expenses, Evdokimow allegedly received an additional $3,123,721 in personal income from the De’Omilia accounts, which he failed to report to the IRS on his federal income tax returns.
Evdokimow had other conspirators form shell corporations and list themselves as sole signatories in order to conceal any connection with Evdokimow. The conspirators made stamps with their signatures and gave them to Evdokimow so that he had full access to the shell corporations’ bank accounts. He allegedly funneled and diverted millions of dollars in De’Omilia income into the bank accounts of the shell corporations without reporting it to the IRS on his federal income tax returns. Evdokimow used the shell corporation bank accounts to pay for $2,407,165 in personal expenses including designer apparel, jewelry, vacations, artwork, and multiple residences.
Evdokimow also opened bank accounts at several banks and then used these accounts to cash checks received directly from patients for professional medical services. Evdokimow cashed out $339,465 in income from patients, which he failed to report on his federal income tax returns.
The seven substantive counts of tax evasion charge Evdokimow with attempting to avoid paying taxes on $7,305,994 in income, causing a loss to the government of $1,580,155. Three additional years of income – which are included in the conspiracy count, but could not be charged as substantive counts because the statute of limitations has expired – bring the total amount on which he allegedly attempted to avoid paying taxes to $10,800,174, costing the United States a total of $2,760,676 in tax revenue.
Each of the counts with which Evdokimow is charged carries a maximum potential penalty of five years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Lorraine S. Gerson of the Economic Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations and the defendant is considered innocent unless and until proven guilty.
14-375
Defense counsel: James Kridel Esq., Clifton, New Jersey
Evdokimow, David Indictment
- Mission Man Ordered to Prison for Trafficking Marijuana
Milton Man Sentenced for Mortgage FraudRead the Press Release
BOSTON - A Milton man was sentenced late yesterday in federal court on bank and wire fraud charges in connection with a property flipping program which involved sham purchasers buying multiple properties which were ultimately the subject of foreclosure.
Edward Johnson, 53, was sentenced by Judge Denise J. Casper to 28 months in prison and ordered to pay restitution of $430,110 to the victim lenders. From about May through July 2006, Johnson recruited two financially unqualified individuals to buy multiple properties in Dorchester and Mattapan. To secure their participation in the scheme, Johnson, or others acting with him, promised these individuals that they would have no responsibility for any expenses or payments on the property, would hold title in their name for a few months until the property was improved and then sold, and in exchange, they would receive a payment for each property purchased. Johnson, and others, submitted false mortgage applications on behalf of these individuals that misrepresented their income, employment, prior indebtedness, and intention to reside in the purchased properties. The mortgages were not paid as promised and all of the properties went into foreclosure.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Division; Christina Scaringi, Special Agent in Charge of U.S. Department of Housing and Urban Development, Office of the Inspector General
Northeast Regional Office; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division; and Boston Police Commissioner William B. Evans made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Lori J. Holik and Sandra S. Bower of Ortiz’s Major Crimes and Economic Crimes Units.Mexican Man Charged with Illegally Reentering the United StatesRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a grand jury returned a one-count indictment charging Fidel Gaytan-Santillan a.k.a. Fidel Gayton-Santillan, age 34, of Mexico, with unlawful reentry into the United States on September 26, 2014.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Brian M. McDonough, following an investigation by agents of the Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Massachusetts Man Gets 30 Months in Prison for Role in Multimillion-Dollar International Cybercrime SchemeRead the Press Release
Worked as ‘Casher’ for Organization that Allegedly Capitalized on
Information Hacked From Customers of More Than a Dozen Global Financial InstitutionsTRENTON, N.J. – A member of an alleged international cybercrime, identity theft and credit card fraud conspiracy was sentenced today to 30 months in prison for his role in a scheme to use information hacked from customer accounts at more than a dozen banks, brokerage firms, payroll processing companies and government agencies to attempt to steal $15 million from customers, U.S. Attorney Paul J. Fishman announced.
Lamar Taylor, 38, of Salem, Mass., previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of conspiracy to commit wire fraud, access device fraud and identity theft. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in the case and statements made in court:
Taylor was asked by other members of the conspiracy to participate in a scheme to “cash out” bank accounts and pre-paid debit cards opened in the names of others. Oleksiy Sharapka, 34, of Kiev, Ukraine, allegedly directed the conspiracy with the help of Leonid Yanovitsky, 39, also of Kiev. Oleg Pidtergerya, 50, who previously pleaded guilty to his role in the conspiracy, managed a cash-out crew in New York for Sharapka and Yanovitsky, and Robert Dubuc, 41, who has also pleaded guilty to his role in the conspiracy, controlled a cash-out crew in Massachusetts. Taylor worked as a “casher” under Dubuc.
Hackers first gained unauthorized access to the bank accounts of customers of more than a dozen global financial institutions and businesses, including: Aon Hewitt; Automatic Data Processing Inc.; Citibank N.A.; E-Trade; Electronic Payments Inc.; Fundtech Holdings LLC, iPayment Inc.; JP Morgan Chase Bank N.A.; Nordstrom Bank; PayPal; TD Ameritrade; U.S. Department of Defense, Defense Finance and Accounting Service; TIAA-CREF; USAA; and Veracity Payment Solutions Inc.
After obtaining unauthorized access to the bank accounts, Sharapka and Yanovitsky diverted money from them to bank accounts and pre-paid debit cards they controlled. They then implemented a sophisticated cash-out operation, employing crews of individuals, including Taylor, to withdraw the stolen funds by making ATM withdrawals and fraudulent purchases in New York, Massachusetts, Illinois, Georgia and elsewhere. Both Sharapka and Yanovitsky are under indictment in the United States and remain at large.
Taylor admitted he was aware fraudulent accounts and cards were created without the consent of the individuals in whose names they were opened. He admitted that they opened bank accounts in the names of identity theft victims and that those accounts were funded with money stolen by other conspirators. He also admitted conducting ATM and bank withdrawals of the stolen funds and providing the proceeds of the fraud, less their own fees, to immediate higher-ups in the organization – Pidtergerya and Dubuc, who, in turn, sent a portion of the proceeds to Sharapka and Yanovitsky in Ukraine.
The government’s ongoing investigation into the organization has so far identified attempts to defraud the victim companies and their customers of more than $15 million.
In addition to the prison term, Judge Sheridan sentenced Taylor to three years of supervised release and ordered him to pay restitution of $338,649.
U.S. Attorney Fishman credited the special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; U.S Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees; Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Jeffery D. Thorpe, Cyber Field Office; and IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.
The government is represented by Economic Crimes Unit Chief Gurbir S. Grewal of the U.S. Attorney’s Office in Newark.
The charges and allegations concerning the remaining conspirators are merely allegations and they are presumed innocent unless and until proven guilty.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
14-376
Defense counsel: Bruce Rosen Esq., Florham Park, N.J.
Mason City Man Sentenced to 35 Years for Distributing Child PornographyRead the Press Release
A man who distributed child pornography was sentenced October 16, 2014, to 35 years in federal prison.
Jamison Miller, age 41, of Mason City, Iowa, received the sentence after a July 3, 2014, guilty plea to one count of distribution of child pornography. At the plea hearing, Miller admitted that, between September 2012 and April 2013, he distributed child pornography. In 2000, Miller was convicted of possession of child pornography.
Miller was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Miller was sentenced to 420 months’ imprisonment. A special assessment of $100 was imposed, and Miller must also serve a 20-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the U.S. Marshals Service, and the Federal Bureau of Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 14-3010.
Maryland Man Sentenced to 40 Months in Prison for Stealing over $200,000 in Scam Targeting People Who Thought He Was A Taxicab Driver-Defendant Stole ATM Cards, PIN Numbers from Unsuspecting Passengers-Read the Press Release
WASHINGTON – Nyerere Mitchell, 50, was sentenced today to 40 months in prison for a scheme in which he offered rides to people who had been drinking, talked them into letting him withdraw cash with their ATMS and pin numbers, and then secretly held onto their bank cards to generate more than $200,000 for himself, U.S. Attorney Ronald C. Machen Jr. announced.
More than 60 people, mostly young adults, were conned in the scheme, which continued from at least April 2009 through November 2013. Many of them thought that Mitchell was a taxicab driver. Mitchell, who typically drove a silver-colored SUV Range Rover, often wore a woman’s wig and padded breasts so that many of his passengers believed he was a woman.
Mitchell, of Clinton, Md., pled guilty in August 2014 in the Superior Court of the District of Columbia to five counts of first-degree felony fraud. He was sentenced by the Honorable Milton C. Lee. Upon completion of his prison term, Mitchell will be placed on five years of probation. He also must pay $228,036 in restitution.
According to the government’s evidence, Mitchell frequented areas such as Dupont Circle, Adams Morgan, Foggy Bottom, Chinatown, and other busy neighborhoods in the District of Columbia and Arlington, Va., offering rides to individuals he believed had been drinking. The victims, in general, were intoxicated, and would give Mitchell their bank cards and pin numbers and allow him to obtain cash for the rides that they were getting. Mitchell generally took the passengers to drive-through ATMs on Wisconsin Avenue and Pennsylvania Avenue NW. He created situations in which the passengers would need to provide him with the pin numbers and cards because the ATM machines were located on the driver’s side of the vehicle.
Unbeknownst to the victims, Mitchell often withdrew hundreds of dollars from the ATMs -- as opposed to what they thought would be $10 to $40 fees. Often he would switch the victim’s ATM card with another one that he had earlier stolen from someone else. In fact, Mitchell maintained so many stolen cards that he could easily substitute a similar-looking card so that the victims didn’t notice the switch until much later.
Over the course of the next few days, Mitchell would use the stolen ATM card without authorization or permission to purchase money orders, many of which he deposited into his credit union account or used to make large purchases at various stores in the area.
An investigation by the Metropolitan Police Department (MPD) led to a search in November 2013 of Mitchell’s home. Law enforcement recovered 205 stolen credit cards in plastic bags inside a shoe box. They also found a wig that Mitchell can be seen wearing in bank surveillance video. Mitchell was arrested Nov. 27, 2013.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department. He also expressed appreciation for the assistance provided by the Prince George’s County, Md., Police Department, Citibank, BB & T Bank, Sun Trust Bank and Wells Fargo Bank. Finally, he acknowledged the efforts of those who worked on the case for the U.S. Attorney’s Office, including Paralegal Specialist Corinne Kleinman, Legal Assistant Chris Samson, and Assistant U.S. Attorney Stephanie G. Miller, who investigated and prosecuted the matter.
14-232Manhattan U.S. Attorney Announces Narcotics Charges Against New York City Department of Education EmployeeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Philip R. Bartlett, Inspector in Charge, United States Postal Inspection Service (“USPIS”), and James J. Hunt, Acting Special Agent in Charge, Drug Enforcement Administration (“DEA”), New York Division, announced today that YINMI RODRIGUEZ, an employee of the New York City Department of Education, and ROBINSON PAULINO were arrested Wednesday on narcotics conspiracy charges. PAULINO and RODRIGUEZ were presented in Manhattan federal court yesterday afternoon before United States Magistrate Judge Gabriel Gorenstein.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Yinmi Rodriguez and Robinson Paulino worked together to deal cocaine using the United States Postal Service. Based on the charges, each could face at least ten years in prison.”
USPIS Inspector in Charge Philip R. Bartlett said: “U.S. Postal Inspectors will vigorously pursue, arrest and bring to justice anyone who uses the US Mail to facilitate the transport of illegal drugs, ensuring the safety of the mail, our employees and customers.”
DEA Acting Special Agent-in-Charge James J. Hunt said: “The arrests of Paulino and Rodriguez result in a lesson learned for drug traffickers everywhere - law enforcement's combined resources will track you down.”
According to the Complaint filed yesterday:
From at least February 2014 through October 15, 2014, ROBINSON PAULINO, YINMI RODRIGUEZ and others engaged in a conspiracy to transport multiple kilograms of cocaine from Puerto Rico to the Bronx for distribution in New York City. Packages containing cocaine were sent via the United States Postal Service from Puerto Rico to PAULINO in the Bronx, New York. RODRIGUEZ, an information technology consultant employed by the New York City Department of Education (“DOE”) since 2008, used an IP address (the “DOE IP Address”) associated with a New York City High School to track the shipment of several of these packages. Once PAULINO received delivery of the packages, he brought them to RODRIGUEZ’s apartment in the Bronx.
Between February and September 2014, numerous packages were sent from Puerto Rico to PAULINO or addresses associated with PAULINO in the Bronx. At least three of these packages were intercepted prior to delivery and found to contain in excess of five kilograms of cocaine.
On October 15, 2014, USPIS Postal Inspectors identified a package sent from Puerto Rico and addressed to “Ron Paul,” at an address in the Bronx associated with PAULINO. After a trained narcotics canine reacted to the package in a manner indicating the presence of narcotics, a USPIS Postal Inspector acting in an undercover capacity delivered the package to PAULINO while other law enforcement agents conducted surveillance. As with prior packages, RODRIGUEZ tracked the shipment of this package from Puerto Rico to the Bronx using the DOE IP Address.
After PAULINO accepted delivery of the package, he was observed delivering the package to RODRIGUEZ’s apartment in the Bronx. USPIS Postal Inspectors and DEA agents then conducted a search of RODRIGUEZ’s apartment, pursuant to a court authorized search warrant, recovering, among other things, two kilograms of cocaine from the delivered package and another kilogram of cocaine hidden in the apartment. PAULINO and RODRIGUEZ, who was present in his apartment at the time of the search, were subsequently arrested.
PAULINO, 31, and RODRIGUEZ, 27, both of the Bronx, are each charged with one count of conspiring to distribute narcotics, which carries a maximum term of life in prison and a mandatory minimum of ten years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the Drug Enforcement Administration and United States Postal Inspection Service.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorneys Joshua A. Naftalis and Andrea M. Griswold are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Rodriguez and Paulino Complaint
MS-13 Gang Members Indicted on Multiple Murder and Attempted Murder ChargesRead the Press Release
ALEXANDRIA, Va. – Thirteen members of the street gang, La Mara Salvatrucha, or MS-13, were recently indicted by a federal grand jury for their alleged roles in three murders and one attempted murder in Northern Virginia, among other charges. Court documents were unsealed today.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; Colonel Edwin C. Roessler, Jr., Chief of Police of the Fairfax County Police Department; Earl L. Cook, Chief of Police of the Alexandria City Police Department; and Stephan M. Hudson, Chief of Police of the Prince William County Police Department made the announcement.
The 13 indicted defendants are currently in custody and awaiting further court proceedings. The defendants are: Pedro Anthony Romero Cruz, 28, residence unknown; Jose Lopez Torres, 25, of Falls Church, Virginia; Jaime Rosales Villegas, 30, of Richmond, Virginia; Juan Carlos Marquez Ayala, 21, of Falls Church; Omar DeJesus Castillo, 25, of Arlington, Virginia; Alvin Gaitan Benitez, 21, of Falls Church; Douglas Duran Cerritos, 18, of Falls Church; Christian Lemus Cerna, 18, of Falls Church; Araely Santiago Villanueva, 18, of Falls Church; Manuel Ernesto Paiz Guevara, 19, of Falls Church; Jose Del Cid, 18, of Alexandria; Jesus Alejandro Chavez, 24, of Alexandria; and Genaro Sen Garcia, 19, residence unknown.
According to the nine-count indictment, on or about October 7, 2013, in Fairfax County, Virginia, defendants Torres, Ayala, and Castillo, together with others known and unknown to the grand jury, knowingly and intentionally murdered Nelson Omar Quintanilla Trujillo. The three defendants, with the alleged assistance of Benitez, then buried the body of Trujillo.
The indictment also alleges on or about March 29, 2014, in Fairfax County, defendants Castillo, Benitez, Cerritos, Cerna, Villanueva, Guevara, and Del Cid, together with others known and unknown to the grand jury, knowingly and intentionally murdered Gerson Adoni Martinez Aguilar.
The indictment also alleges on or about June 19, 2014, in the City of Alexandria, defendants Del Cid, Chavez, and Garcia, together with others known and unknown to the grand jury, knowingly and intentionally murdered Julio Urrutia. The indictment alleges that Chavez killed Urrutia by shooting him with a firearm.
According to the indictment, from on or about September 29, 2013, through on or about October 1, 2013, in Woodbridge, Virginia, defendants Cruz, Torres, and Villegas, together with others known and unknown to the grand jury, knowingly and intentionally combined, conspired, confederated, and agreed together and with each other and others to murder an unnamed person.
Eleven of the defendants face the maximum penalty of death, or a mandatory sentence of life in prison. The remaining two defendants, Villegas and Cruz, face a maximum sentence of 10 years in prison on the attempted murder charge, in addition to a consecutive minimum sentence of 10 years in prison due to the possession of a firearm charge. The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case was investigated by the FBI’s Washington Field Office; Fairfax County Police Department; Alexandria City Police Department; Prince William County Police Department; and Homeland Security Investigations (HSI) Immigrations Customs Enforcement. Assistant U.S. Attorneys Stephen M. Campbell and Julia K. Martinez are prosecuting the case.
Criminal indictments are only charges and not evidence of guilt. All defendants are presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-CR-306.Tweet
Leaders of Large-Scale Drug Ring Sentenced to Life in PrisonRead the Press Release
Two individuals from metro-Detroit were sentenced today to life in prison after having been convicted of violating various federal drug laws in a massive drug ring that trafficked hundreds of kilograms of heroin and cocaine, and thousands of pounds of marijuana in metro-Detroit, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Acting Special Agent in Charge Durell Hope, Drug Enforcement Administration, Detroit Division.
Carlos Ellis Powell, age 39, of Washington Township, MI, and Eric Jerome Powell, age 36, of Franklin Farms, MI were sentenced today by United States District Judge Stephen J. Murphy.
The Drug Enforcement Administration’s investigation of the drug ring uncovered a massive operation that began in 2006 and continued until late 2010. Carlos Powell, Eric Powell, and eleven others operated a drug organization which dealt in multi-kilogram quantities of marijuana, heroin and cocaine in the Detroit metropolitan area. The members of the organization would arrange for large amounts of money derived from the sale of drugs to be transported to Phoenix, Arizona, Mexico and elsewhere for the purpose of purchasing more controlled substances. As part of the conspiracy, the members of the organization would use semi-trucks and vehicles equipped with traps and hidden compartments to transport marijuana, cocaine and heroin, as well as cash generated from the sale of these drugs. The drug ring, which was one of the largest in metro-Detroit history, also laundered in excess of $21 million in U.S. currency.
Since 2006, law enforcement officers from across the country have seized over 12 kilograms of cocaine, 30 kilograms of heroin and 1000 pounds of marijuana destined for distribution by this organization. More than $21 million in cash was seized by law enforcement officers between June 2010 and November 2010 alone. Law enforcement also seized jewelry appraised at over $800,000, 8 pieces of real property in Michigan and Georgia valued in excess of $750,000, 10 vehicles, including a 2004 Rolls Royce, 2006 and 2008 Bentley, a 2006 Ferrari, 4 Mercedes, a Ranger Rover and two boats.
The members of this organization, using the illegal proceeds of their narcotic sales, purchased and leased numerous luxury vehicles, acquired and sold real property and purchased jewelry while concealing the true source and nature of the funds involved in the transaction through false names and nominee purchasers.
The members of the organization would deposit large amounts of cash derived from the sale of drugs into various bank accounts; purchase cashier's checks and money orders; and wire transfer these funds. These funds would then be used to purchase assets and pay personal expenses with the goal of concealing the true source, nature and ownership of the funds which had been derived from the organization's drug sales.
This case was investigated by special agents of the Drug Enforcement Administration, Internal Revenue Service, Criminal Investigation, U.S. Immigration and Customs Enforcement, Office of Homeland Security Investigations with the assistance of officers from Northville Township Police Department, Plymouth Township Police Department, Warren Police Department, Redford Police Department, Macomb County Sheriff’s Office, Detroit Police Department and the Michigan State Police.Kirtland Man Sentenced to Prison for Federal Statutory Rape ConvictionRead the Press Release
ALBUQUERQUE – Justin Chee, 24, a member of the Navajo Nation who resides in Kirtland, N.M., was sentenced this morning to 30 months in federal prison followed by five years of supervised release for his statutory rape conviction. Chee will be required to register as a sex offender after he completes his prison sentence.
Chee was arrested in March 2014, on a criminal complaint alleging that he engaged in a sexual act with a Jicarilla Apache child between the age of 12 and 16 years. Chee subsequently was indicted and charged with statutory rape. According to the indictment, Chee committed the offense in Aug. 2012, in a location within the Navajo Indian Reservation.
Chee pled guilty to the indictment on June 16, 2014, and admitted that on Aug. 30, 2012, when he was 22 years of age, he knowingly engaged in a sexual act with the 14-year-old victim.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety, the Jicarilla Apache Tribal Police Department and the San Juan Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.Justice Department Sues Wisconsin Mobile Home Park for Discriminating Against Families with ChildrenRead the Press Release
The Justice Department announced today that it has filed a lawsuit against the owners and operators of the Twin Oaks Mobile Home Park, a 230-lot mobile home park, in Whitewater, Wisconsin, for refusing to allow families with children to live in certain areas of the park, in violation of the Fair Housing Act.
The lawsuit, filed in U.S. District Court in Madison, Wisconsin, alleges that the owner of Twin Oaks, Twin Oaks Mobile Home Park, Inc. and its managers—Merrill Eugene Gutzmer and Dennis Hansen—violated the Fair Housing Act by maintaining and enforcing a policy of not allowing families with children to reside in an area that includes approximately 60 of the 230 lots within the park. The park does not limit residency to older persons. The complaint further alleges that, under the policy described above, the defendants refused to approve the application for residency of a single woman who planned to purchase the home of a former resident and live there with her then two-year-old child. The single woman and the mobile home owner who was trying to sell her mobile home subsequently filed a complaint with the Department of Housing and Urban Development (“HUD”). After conducting an investigation, HUD found that the defendants had violated the Fair Housing Act, and referred the matter to the Department of Justice.
“For over twenty-five years, the Fair Housing Act has prohibited housing providers from refusing to rent or sell housing to families with children,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “Many parents are already struggling to find affordable housing for their families, and they should not also have to face discrimination because they have children.”
“This office is committed to ensuring that all residents in this district, including families with children, are afforded equal opportunity to rent and live where they choose under the Fair Housing Act,” said U.S. Attorney John W. Vaudreuil for the Western District of Wisconsin. “Discrimination based on familial status will not be tolerated in this district.”
“HUD and the Department of Justice will continue to enforce the Fair Housing Act to ensure that the housing options of families are not illegally limited because they have children,” said HUD Assistant Secretary Gustavo Velasquez for Fair Housing and Equal Opportunity.
The suit seeks a court order requiring the defendants to bring their policies and practices into compliance with the Fair Housing Act, as well as monetary damages for persons harmed and civil penalties to the United States. Anyone with information about potential discrimination against families with children at Twin Oaks should call the Justice Department at 1-800-896-7743, mailbox #9997, or call the U.S. Attorney’s Office for the Western District of Wisconsin, at (608) 264-5158.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, familial status, and disability. Among other things, the Fair Housing Act makes it illegal to refuse to rent housing and to discriminate in the terms or conditions of housing rentals because of familial status, except in specified categories of housing that are reserved for older persons. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt.
Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, email the Justice Department at [email protected], or contact the U.S. Department of Housing and Urban Development at 1-800-669-9777 or through www.hud.gov.
The complaint is an allegation of unlawful conduct. The allegations in the complaint must still be proven in federal court.
Jury Convicts Peruvian Man of Defrauding and Extorting Spanish-Speaking Customers through Fraudulent Call CentersRead the Press Release
A jury in Miami convicted a Lima, Peru, man on 26 felony charges of conspiracy, fraud and attempted extortion arising from his operating call centers in Peru that lied to and threatened Spanish-speaking victims into paying fraudulent settlements, the Department of Justice announced today.
Juan Alejandro Rodriguez Cuya, 35, was convicted by a jury after less than two hours of deliberation following a two-week trial before U.S. District Court Judge Patricia A. Seitz in Miami federal court. His co-defendant at trial, Maria Luzula, 52, of Miami, pleaded guilty to all of the charges against her midway through the trial. Luzula is Cuya’s mother.
Cuya and Luzula both face a statutory maximum of 20 years in prison on each count. Both defendants remain in custody pending their sentencing on Jan. 22, 2015, and Dec. 18, respectively.
“The defendants targeted and preyed upon the Spanish-speaking community – and the evidence of the harm that their fraud caused on individual victims is heart-wrenching,” said Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division. “The Justice Department is committed to prosecuting those who defraud consumers for their own personal gain.”
According to evidence presented at trial, the defendants’ employees in Peru used Internet-based telephone calls to threaten Spanish-speaking victims in the United States. The Peruvian callers falsely accused the victims of having refused delivery of certain products and claimed that the victims owed thousands of dollars in fines and that lawsuits would be brought against them. In reality, the victims had never ordered these products and nothing had been delivered.
Additional evidence at trial established that Luzula’s and Cuya’s employees claimed that the consumers could resolve the fines if they immediately paid a “settlement fee.” Consumers who contested these settlement fees were told that failure to pay could lead to arrest, deportation or forfeiture of property. Thousands of victims succumbed to these threats and paid fees that they did not owe. A phone room in Miami collected the fees.
Victims who testified at trial spoke of how anxious the calls made them. The victims were so afraid of the threats that they paid fees they simply could not afford.
Acting Assistant Attorney General Branda commended the U.S. Postal Inspection Service for their investigative efforts and thanked the U.S. Attorney’s Office for the Southern District of Florida for their contributions to the case. The case was prosecuted by Trial Attorney Phil Toomajian and Assistant Director Richard Goldberg of the Civil Division’s Consumer Protection Branch.
Jennings Man Sentenced to 188 Months in Prison for Receiving Child PornographyRead the Press Release
LAKE CHARLES, La. – Unites States Attorney Stephanie A. Finley announced that a Jennings man was sentenced Thursday to 188 months in prison for downloading hundreds of movies of child pornography to his computer and other electronic devices.
Seth Ryan Bivens, 30, of Jennings, La., was sentenced Thursday by U.S. District Judge Patricia Minaldi for one count of receiving child pornography. He was also sentenced to serve a lifetime of supervised release and is required to register as a sex offender. According to evidence presented at the guilty plea on November 1, 2013, law enforcement authorities discovered that Bivens was downloading child pornography using “peer-to-peer” software. Bivens’ home was searched on November 14, 2012. An examination of Bivens’ computer and other electronic devices uncovered 294 movies and 28 images of child pornography.
The U.S. Department of Homeland Security-Homeland Security Investigations and the Louisiana State Police conducted the investigation. Assistant U.S. Attorney Robert C. Abendroth prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be reported anonymously.
Jacksonville Man Arrested and Charged with Advertising for Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that James Patrick Foreman (44, Jacksonville) has been charged by a federal criminal complaint with advertising for child pornography. If convicted, he faces a mandatory minimum penalty of 15 years, up to 30 years, in federal prison, and a potential life term of supervision. Foreman was arrested on October 17, 2014, at his residence in Jacksonville. During his initial court appearance, he was ordered detained pending a detention hearing on October 23, 2014.
According to the criminal complaint, an agent with the Federal Bureau of Investigation began an undercover investigation to identify individuals in the Jacksonville area that had access to and/or were trading images and videos depicting child pornography over the Internet. The agent determined that a computer in the area was hosting images of child pornography using a peer-to-peer file sharing program. The agent was able to download several files depicting child pornography from this computer. Further investigation traced the computer to Foreman’s residence.
On October 1, 2014, law enforcement officers executed a federal search warrant at Foreman=s residence. During an interview, he admitted to downloading all ages of child pornography.
A search and subsequent analysis of Foreman’s computer revealed that it contained a video showing a toddler being sexually assaulted. Also discovered were logs of online conversations between Foreman and at least one other individual, during which Foreman offered to exchange and distribute the video depicting the toddler’s abuse.
A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
International Money Broker Sentenced to 92 Months in PrisonRead the Press Release
Luis Anibal Salazar Garcia, the primary money broker for a Colombian-based international money laundering organization, was sentenced today to 92 months in prison at the federal courthouse in Brooklyn. Ten co-defendants were sentenced last month to sentences ranging from 28 to 64 months’ imprisonment. Two other co-defendants remain to be sentenced. All 13 defendants, who were extradited from Colombia, pleaded guilty to conspiring to launder narcotics proceeds. Together, the defendants were responsible for laundering tens of millions of dollars of narcotics proceeds from the United States to Colombia between 2006 and 2013 on behalf of Colombian drug cartels.
The sentences were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and James T. Hayes, Jr., Special Agent in Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York. The sentence was imposed by Chief United States District Court Judge Carol B. Amon.
“Salazar Garcia and his cohorts in crime operated a sophisticated network of shipments and transfers that went to the heart of the deadly narcotics trade – the money. The defendants’ money laundering activities allowed narcotics traffickers in Colombia to reap enormous profits from sending drugs to the United States,” stated United States Attorney Lynch. “These sentences will send a message to narcotics traffickers that we are committed to shutting down their ability to profit from selling their illegal drugs in the United States.”
“The incarceration of this defendant and his cohorts disrupts a money laundering organization that contributed to the flow of millions of dollars in illicit drug proceeds,” said HSI New York Special Agent in Charge Hayes. “The prosecution of these money launderers is a testament to the expertise of the members of the El Dorado Task Force and our international law enforcement partners, whose investigative prowess enables them to find international criminals and bring them to justice.”
Salazar Garcia and his twelve co-defendants were money brokers operating out of the El Diamante, Gran Centro Commercial, San Andresito, and Atlantis retail shopping malls in Cali, Colombia, and assisted drug trafficking organizations in Colombia by laundering the proceeds of sales of narcotics in the United States. The defendants also oversaw a network of confederates who operated in the United States taking the proceeds from narcotics sales here and passing the money to others, who ultimately repatriated millions of dollars in drug proceeds to suppliers in Colombia. The drug money was transported in amounts ranging from thousands to hundreds of thousands of dollars, often bundled and heat sealed, and concealed in vehicles, gasoline containers, duffel bags, and shoeboxes. Twenty-four of the U.S.-based confederates have also pleaded guilty to their participation in the money laundering conspiracy.
As part of this investigation, law enforcement officers have seized more than $6.5 million in United States currency as well as 52.5 kilograms of heroin, 32 kilograms of cocaine, 63 pounds of marijuana, eight vehicles, and three firearms.
The investigation was led by agents from the HSI New York Office’s El Dorado Task Force, comprising over 260 members from more than 55 law enforcement agencies in New York and New Jersey – including special agents, state and local police investigators, intelligence analysts, and federal prosecutors – with the assistance of the task force’s High Intensity Financial Crimes Area (HIFCA)/Intelligence Unit.
Ms. Lynch extended her grateful appreciation to HSI New York, the Colombian National Police, particularly the Investigative Directorate, and members of the HSI Transnational Criminal Investigations Unit, for their hard work and dedication throughout the investigation, and thanked the Department of Justice’s Office of International Affairs for its assistance in this investigation and prosecution.
The government’s case was prosecuted by Assistant United States Attorneys Douglas M. Pravda and Tiana A. Demas.
The Defendants:
FABER ENRIQUE BERMUDEZ ARCINIEGAS
AGE: 35
HARBI CAICEDO
AGE: 51
ALEXANDER HENAO CHAMORRO
AGE: 37
EDWIN ARENAS CHAMORRO
AGE: 39
LUIS ANIBAL SALAZAR GARCIA
AGE: 51
JOSE LEONIDAS SALAZAR GARCIA
AGE: 55
JUAN CARLOS MEJIA GONZALEZ
AGE: 50
JAVIER ORLANDO ALVAREZ JARAMILLO
AGE: 51
JOSE LISANDRO ABADIA JIMENEZ
AGE: 60
JUAN FERNANDO MOLINA JIMENEZ
AGE: 56
MANUEL ANTONIO CAMPO JIMENEZ
AGE: 53
OSCAR GARCIA LONDONO
AGE: 39
NUBIA ABADIA SARRIA
AGE: 35
E.D.N.Y. Docket No. 12 CR 623
Indictment Unsealed in Interstate Methamphetamine ConspiracyRead the Press Release
U.S. Attorney Kenneth A. Polite announced the recent unsealing of an indictment charging SHAWN JACCUZZO, age 43, of Houma, Louisiana, ANGELA WEAVER, a/k/a “Angela Adams,” a/k/a “Angela Constant,” age 43, and CHANCE WEAVER, age 30, both residing in Cypress, California. According to the indictment, the defendants are charged with one count of conspiracy to distribute and to possess with the intent to distribute 50 grams or more of actual methamphetamine. The indictment was unsealed on Thursday, October 16, 2014, after the arrest of ANGELA WEAVER and CHANCE WEAVER in Orange County, California, by United States Postal Inspectors.If found guilty as charged, the defendants could each face a mandatory minimum of 10 years of imprisonment, a $10,000,000 fine, and at least five years of supervised release.
U. S. Attorney Polite reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.U.S. Attorney Polite praised the work of the United States Postal Inspection Service (USPIS) and the Drug Enforcement Administration (DEA). Assistant United States Attorney Matthew Payne is in charge of the prosecution.
(Download Indictment )
Identity Thief Sentenced to 61 Months in PrisonRead the Press Release
Follow @NDFLNewsTALLAHASSEE, FLORIDA – McKenzie Deshommes Francois, 22, of Miami, was sentenced yesterday afternoon to 61 months in prison based upon his guilty plea to charges of conspiring to file false claims, conversion of government property, using unauthorized access devices, and aggravated identity theft. United States District Judge Robert L. Hinkle sentenced Francois to two years in prison for using stolen identities consecutive to 37 months on the other charges. Judge Hinkle also sentenced Francois to three years of supervised release and $269,358 in restitution. The sentence was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The government’s evidence showed that on May 8, 2013, Francois left a wallet containing thirteen debit cards at the Tallahassee Airport. When Francois asked about the wallet at his destination, Ft. Lauderdale, he was interviewed by Special Agents of the Internal Revenue Service (IRS). During that interview, Francois admitted that the debit cards in the wallet contained income tax refunds that were issued on the basis of fraudulent income tax returns and that he had been paid to retrieve the cards from an apartment complex in Tallahassee. He also admitted that he had prepared fraudulent income tax returns himself, although not all of his efforts had been successful.
Evidence showed that Francois used fifty-six stolen identities and attempted to obtain $522,410 in fraudulent refunds. This included ten victims and attempted losses of $86,531 on the debit cards found in his wallet. In addition, nine victims linked to $77,756 in attempted losses were identified from a search of his cellular telephone. Thirty-seven more victims and $358,410 in attempted losses were linked to the defendant based upon common factors - - same IP address, same stolen tax preparer ID number, same entries for tax calculations, and same twenty-three day filing period - - used in other fraudulent tax filings. The last of these 37 fraudulent returns was filed on May 7, 2014 - - the day before Francois was interviewed by the IRS. A witness at sentencing testified that more than 800 fraudulent tax returns claiming more than seven million dollars in refunds were filed using the same “recipe” and the same stolen tax preparer ID number, but agreed that Francois could not be connected to the bulk of those returns.
U.S. Attorney Marsh credited the success of this prosecution to the joint efforts of the U.S. Secret Service and the Internal Revenue Service. The case was prosecuted by Assistant United States Attorney Michael T. Simpson.
Graham Co. Man Pleads Guilty to Lacey Act Violation and Is Sentenced to 20 Months in Prison for Petty Offenses Involving Illegal Hunting ActivitiesRead the Press Release
ASHEVILLE, N.C. – David Chadwick Crisp, 35, of Graham Co., appeared before U.S. Magistrate Judge Dennis L. Howell and pleaded guilty to one count of misdemeanor Lacey Act violation, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. He will be sentenced by U.S. District Judge Martin K. Reidinger on that offense at a later date.
Today, Crisp also pleaded guilty to four offenses involving illegal hunting activities within the Nantahala National Forest, one illegal hunting activity on Fontana Lake, and one boating violation on Fontana Lake. For those six offenses, he was sentenced to serve a total of 20 months in prison. In addition to the prison term, Judge Howell ordered Crisp to serve one year of probation upon his release from prison, and ordered him to pay $3,000 in fines, and to surrender his North Carolina hunting and fishing licenses for a period of one year. Crisp also agreed that when he is later sentenced by Judge Reidinger he will pay $2,232 to the North Carolina Wildlife Resources Commission as restitution for one of the black bears he killed.
According to court documents and court records, the misdemeanor Lacey Act violation Crisp pleaded guilty to earlier in the day involved the illegal transportation of an American black bear the defendant knew had been killed in the Nantahala National Forest in violation of state and federal laws.
The six offenses to which Crisp pleaded guilty and for which he was sentenced today were:
• Knowingly operating a vessel on the waters of the State of North Carolina between sunset and sunrise without the use of navigational lights.
• Knowingly and intentionally hunting bear at night and during closed season.
• Knowingly and intentionally hunting dear at night.
• Knowingly and intentionally hunting deer with the use and aid of artificial light.
• Knowingly and intentionally hunting without a license.
• Knowingly and intentionally hunting deer with a firearm during closed season.According to court records, Crisp’s illegal activities took place in the Nantahala National Forest and elsewhere in Graham Co., between November 2010 and October 2012. According to the filed factual basis presented in open court today, which Crisp agreed under oath was accurate, Crisp and his conspirators used illegal hunting techniques on a number of occasions to illegally hunt for bears, hogs, deer and other wildlife in the National Forest and within the Great Smoky Mountains National Park. Court records indicate that among the illegal techniques used were spotlights, bear baiting using chocolate, and equipping a bait barrel with a dog collar that could then be used to track the bear, as well as hunting at night and out of season.
According to court records, to conceal his illegal hunting activities from law enforcement, Crisp took further measures, for example, keeping a “throw away” rifle hidden in a hollow tree, to avoid detection going in an out the national park with a gun. Court records also indicate that when an undercover agent said to Crisp that there would probably be a lot of bears in the national park, but that bear hunting there is illegal, Crisp responded, “You can if you don’t get caught.” On another occasion, court records show, Crisp told an undercover agent that he had not tagged a bear yet, even though he had helped kill four bears and had killed one himself.
Following Crisp’s guilty plea and in announcing Crisp’s sentence, Judge Howell said that he had never seen this quantity or level of wildlife violations.
* * *The following defendants have also been prosecuted for illegal hunting activities and related violations:
On September 5, 2014, Walter Stancil and Jerry Parker were convicted of conspiracy to violate the Lacey Act and are awaiting sentencing.
On October 2, 2014, Walter Stancil was convicted of removing Forest Service property, a game camera that was set up on one of his bear bait sites. He received a sentence of 15 days in jail.
On October 9, 2014, David Crisp was convicted at trial of aiding and abetting the illegal placement of chocolate, for bear bait, in the Nantahala National Forest. He was sentenced to 90 days in jail and a $2,000 fine.
Jerry Parker pled guilty yesterday to illegally conducting a commercial enterprise, that is, a bear hunting guide service, in the Nantahala National Forest without a commercial special use permit. He was sentenced to a fine of $1,500 and was ordered to forfeit his North Carolina hunting and fishing license for two years and was ordered not to hunt or fish in North Carolina for two years.
The investigations were conducted by the U.S. Fish and Wildlife Service, the US Forest Service, the NC Wildlife Resources Commission, and the Georgia Department of Natural Resources. The prosecutions are being handled by Assistant U.S. Attorney Richard Edwards of the U.S. Attorney’s Office in Asheville.
Former Owners and Employees of Hampton Pipe and Tobacco ArrestedRead the Press Release
NEWPORT NEWS, Va. – The former owner of Hampton Pipe and Tobacco, Jayson Mickle, along with nine others, were arrested yesterday and charged in a multi-count indictment relating to the distribution of controlled substance analogues, aka “Spice,” among other charges.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C., made the announcement after initial court appearances took place in Norfolk, Virginia, before United States Magistrate Judge Tommy E. Miller. The defendants were all ordered held in custody pending a detention hearing in Newport News on October 20, 2014.
According to the indictment, the defendants ostensibly sold Blueberry Hedgehog, Cherry Hedgehog, Purp, Hampster Purp, Easta Pink and Yella to the public as “Aromatic Potpourri” and “Herbal Incense”, but they contained synthetic chemicals that mimic the effects of tetrahydrocannabinol (THC), the active ingredient in marijuana. The defendants intended each to be smokable products, and consequently were subject to Food and Drug Administration (FDA) laws and regulations. The FDA Office of Criminal Investigations considers these products as “street drug alternatives”, and as such, has concluded they pose a potential threat to public health.
The indictment includes the following charges, although individual defendant charges vary: Conspiracy to import and distribute controlled substance analogues (aka “Spice”), conspiracy to launder money, conspiracy to defraud the United States, distribution of controlled substance analogues, misbranding, mail fraud, importation of a controlled substance, smuggling goods into the United States, maintaining drug involved premises, possession of acetone with intent to manufacture a controlled substance, distribution of drug paraphernalia, use of a communication facility to commit a drug crime and money laundering. In addition to the criminal charges, the United States is seeking the forfeiture of 61 specific property items and a money judgment of nearly $13.15 million. According to the indictment, the charges arose from the individuals’ involvement with Hampton Pipe and Tobacco, a store formerly owned by Jayson Mickle, in the production and distribution of synthetic cannabinoids or “Spice”.
Jayson Mickle, 29, of Hampton, Virginia; Amanda Rowe, 30, of Hampton; Sandra Cooke, 52, of Hampton; Phillip Gibson, 45, of Hampton; Jake Pham, 29, of Newport News; David Jay Mickle, 52, of Hayes, Virginia; David Joseph Mickle, 31, of Hampton; Margaret Amber Phillips Cooper, 31, of Gloucester, Virginia; Jaime Wainwright, 24, of Hampton; Abigail Rose Phillips, 29 of Hampton; Christopher Ellis, 30, of Salt Lake City, Utah; and Justin Calderon, 32, of New York, New York; were charged in a multi-count indictment returned by a United States grand jury sitting in Newport News, Virginia.
Jayson Mickle, Rowe, Cooke, Gibson, Pham, David Jay Mickle, David Joseph Mickle, Margaret Amber Phillips Cooper, Jamie Wainwright, and Abigail Rose Phillips were arrested yesterday by federal, state and local law enforcement agents.
As the arrests were taking place, law enforcement agents also executed federal search warrants at Jayson Mickle’s home at 69 Chowning Drive in Hampton, and a business location associated with Angry Monkey Glass at 915 G Street in Hampton.
This investigation began more than two years ago in Gloucester County. The case was investigated by Homeland Security Investigations; FDA Office of Criminal Investigations; Gloucester County Sheriff’s Office; Internal Revenue Service – Criminal Investigations; U.S. Postal Inspection Service; Virginia State Police; Tri-Rivers and Peninsula Task Forces; U.S. Air Force Office of Special Investigations; Hampton Police Division; Newport News Police Department; U.S. Customs and Border Protection; Virginia Department of Emergency Services; Virginia Fusion Center; and the Virginia Marine Resources Police. Assistant U.S. Attorneys Eric M. Hurt and Kevin Hudson are prosecuting the case on behalf of the United States.
Indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the U.S. Attorney's Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:14-cr-00053.Tweet
Former Narragansett Couple Sentenced to Federal Prison in Drug Trafficking ConspiracyRead the Press Release
PROVIDENCE, R.I. – Damon Graham, 34, formerly of Narragansett, was sentenced today to 186 months in federal prison for trafficking cocaine and crack cocaine, and for being a felon in possession of firearms. His wife, Ashley Sekator-Graham, 31, was sentenced on August 14, 2014, to 48 months in federal prison for her role in the trafficking of cocaine and crack cocaine in South Kingstown and Narragansett.
The sentences, imposed by U.S. District Court Judge Mary M. Lisi, are announced by United States Attorney Peter F. Neronha, South Kingstown Police Chief Vincent Vespia, Jr., Narragansett Police Chief Dean F. Hoxsie and Michael Ferguson, Acting Special Agent in Charge of the DEA’s New England field division.
At sentencing, Damon Graham was also ordered to serve eight years supervised release upon completion of his prison term. He pleaded guilty on April 23, 2014, to one count each of possession with the intent to distribute 28 grams or more of crack cocaine, conspiracy to possess with the intent to distribute 28 grams or more of crack cocaine, possession with the intent to distribute cocaine, conspiracy to possess with the intent to distribute cocaine and two counts of being a felon in possession of a firearm.
Ashley Sekator-Graham pleaded guilty on April 16, 2014, to one count each of possession of crack cocaine with the intent to distribute and conspiracy to possess cocaine with the intent to distribute. At sentencing, Sekator-Graham was ordered to serve five years supervised release upon completion of her prison term.
According to court documents and information presented to the court, an investigation in July 2013 into the distribution of cocaine and crack cocaine in South Kingstown and Narragansett, including undercover drug purchases and electronic surveillance by law enforcement, resulted in the seizure of nearly 109 grams of crack cocaine, 200 grams of cocaine powder, two firearms, $93,701 in cash and the arrest on July 18, 2013, of Damon Graham and his wife Ashley Sekator-Graham.
According to court documents, the investigation and the execution of court authorized search warrants resulted in the seizure of nearly 109 grams of crack cocaine, a 9mm pistol, ammunition and $3,751 in cash from the couple’s Narragansett residence; 201 grams of cocaine, a .38 caliber revolver, hollow-point ammunition and a safe containing $89,950 in cash from a self-storage unit rented by the couple in Narragansett.
The cases were prosecuted by Assistant U.S. Attorney Pamela E. Chin, with the assistance of Assistant U.S. Attorney Paul F. Daly, Jr.
Rhode Island State Police and agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives assisted South Kingstown Police, Narragansett Police and the Rhode Island DEA Drug Task Force in the investigation of this matter.
###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Former Grandville Man Sentenced for Filing A False Tax ReturnRead the Press Release
GRAND RAPIDS, MICHIGAN – Jeffrey Roger Richter, a former resident of Grandville, Michigan, was sentenced to 30 months imprisonment followed by one year of supervised release for filing a false and fraudulent U.S. income tax return with the IRS, U.S. Attorney Patrick Miles announced today. In addition to the prison term, U.S. District Judge Robert Holmes Bell ordered Richter to pay $882,655.00 in restitution to the IRS. Richter pleaded guilty before Judge Bell on May 29, 2014.
U.S. Attorney Miles commented that: “Those who illegally fail to pay their fair share of taxes rob from all Americans. Their selfishness is unacceptable and deserves criminal prosecution and punishment. I am pleased with this sentence and restitution.”
According to court records, after graduating from Davenport College with an accounting degree, Richter was employed by John H. Dekker & Sons, Inc. Richter eventually became a part owner of Dekker & Sons, Inc. as well as Hi-Tec Building Services, Inc., a janitorial service. While at Dekker, Richter began using company credit cards for personal expenditures. Richter knowingly failed to report the income from the use of the corporate credit cards on his federal income tax returns for the 2007 through 2011 tax years. In total, for the years 2007 through 2011, Richter underreported his income by $995,436.07. By failing to accurately report all of his income, Richter avoided paying approximately $372,000 in personal income tax due and owing to the Internal Revenue Service.
“Richter chose to steal from his business as well as the American taxpayers by filing false income tax returns. IRS-CI’s primary enforcement program is, and will continue to be, directed at individuals like Richter who willfully violate the tax laws,” said Jarod Koopman, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation.
The case was investigated by special agents of the IRS Criminal Investigation Division and prosecuted by Assistant U.S. Attorney B. Rene Shekmer.
END
Former Executive Director of Noah, Stacey Jackson, Sentenced to Five Years in PrisonRead the Press Release
U.S. Attorney Kenneth A. Polite announced that STACEY JACKSON, age 47, a resident of New Orleans, Louisiana, was sentenced today for her role in a conspiracy to steal federal funds and demand kickbacks from a program receiving federal funds.
U.S. District Judge Mary Ann Vial Lemmon sentenced JACKSON to 60 months imprisonment, followed by 3 years of supervised release. JACKSON was also ordered to pay over $424,000 in restitution to Housing and Urban Development (“HUD”) and to individual victims, as well as a $50,000 fine.
According to court documents, JACKSON, the former Executive Director of New Orleans Affordable Homeownership (“NOAH”), a city agency and non-profit corporation, conspired with EARL MYERS, TRELLIS SMITH, and others to misuse and personally benefit from federal funds that NOAH had received, in violation of the law. HUD both before and after Hurricane Katrina, had provided grant money to the City of New Orleans to address blight within the city and to remediate homes damaged by the storm.
JACKSON, as the Executive Director of NOAH, was responsible for the day-to-day management of the agency and determined how much each contractor would be paid. JACKSON arranged to overpay certain contractors, such as MYERS and SMITH, instructing them to kickback portions of the overpayments to JACKSON’S benefit.
Specifically, court documents state that on numerous occasions, JACKSON instructed MYERS and SMITH to pay her kickbacks out of the NOAH money she paid them for work that could not be substantiated by invoices or work actually performed. For example, in or near October 2005, JACKSON, wrote a check from NOAH to Parish Dubuclet, a company operated by her friend, SMITH, for approximately $15,260, which was deposited into a bank account belonging to Smith and Parish Dubuclet. On or about October 8, 2005, Parish Dubuclet wrote a check in the amount of $10,460 to JACKSON’S father, which was deposited into a bank account that JACKSON, controlled jointly with her father. Several days later, JACKSON used this money to write a check to a tree removal service to pay for the removal of a tree from her mother’s yard.
Court documents state that from in or near December of 2006 through in or near July of 2007, JACKSON contracted with MYERS to renovate properties that she owned, which were located on 6th Street and Danneel Street in New Orleans, Louisiana. JACKSON paid MYERS tens of thousands of dollars toward the renovation project and used public funds belonging to the United States and distributed to NOAH to pay MYERS a portion of the money she owed him for these renovations.
Documents in the court records also outline that on or about November 1, 2007, JACKSON wrote two checks to companies owned and operated by MYERS. One check was for $47,899.50 to MYERS & Sons. JACKSON instructed MYERS to give portions of this money to different entities, such as a school that JACKSON was affiliated with. The second check for $32,842.50 was payable to Excel Development, also owned and operated by MYERS. JACKSON directed MYERS to kickback a portion of this money to her by having him write two checks, one for $9,400 and one for $7,000 payable to Z.F., a person who JACKSON knew personally and to whose checking account she had access. MYERS complied with these instructions because he knew it would ensure that he would continue getting NOAH remediation work assignments from JACKSON.
Also according to court documents, on or around August 13, 14, and 15, 2008, after JACKSON became aware that MYERS had received a subpoena from a federal grand jury ordering him to turn over documents supporting the work he had done for NOAH, JACKSON provided false and fraudulent documents to MYERS in an effort to mislead the federal grand jury into finding that no fraud occurred at the defendant’s direction or while she was the Executive Director of NOAH.
“Stacey Jackson’s criminal conduct was particularly despicable, as it prevented our most disadvantaged residents from receiving much-needed assistance as they struggled to rebuild their lives following Hurricane Katrina,” stated U.S. Attorney Kenneth Polite. “Of course, our entire region suffers as well, as her corruption perpetuates entrenched stereotypes about our public officials and further erodes public trust in our government. The court appropriately imposed the statutory maximum sentence of 5 years in prison, along with full restitution to her victims and a significant fine.”
"In the aftermath of the convictions and sentencings of former Mayor Ray Nagin and Ms. Jackson, the FBI and its law enforcement partners will continue their tireless pursuit of all those who unlawfully financially capitalize upon the Katrina tragedy event as its 10-year anniversary nears,” stated Michael Anderson, Special Agent in Charge, Federal Bureau of Investigation, New Orleans Field Office.
IRS-Criminal Investigation Special Agent in Charge Gabriel L. Grchan said, "We are pleased with the announcement of today’s sentence. Ms. Jackson will now be held accountable for using a public trust position to bill the citizens of New Orleans for work that was never performed. This investigation is a prime example of how Special Agents of IRS Criminal Investigation work with the FBI and the United States Attorney's Office to bring individuals involved in fraud to justice. We will continue to work tirelessly with our law enforcement partners to stop those individuals who scheme and conspire with each other to benefit themselves to the detriment of other citizens and their government."“This sentencing was the result of outstanding investigative work conducted by HUD-OIG, and our law enforcement partners,” stated Wyatt J. Achord, Assistant Special Agent in Charge, U.S. Department of Housing and Urban Development-Office of Inspector General. “This collaborative effort sends a clear message that if someone steals from government subsidized programs, or intentionally misdirects funds for their personal gain, they will be prosecuted to the full extent of the law.”
“I am pleased that the New Orleans Office of Inspector General was able to assist our federal partners in gathering evidence for this prosecution,” said New Orleans IG Ed Quatrevaux.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation, the Department of Housing and Urban Development - Office of Inspector General, the Internal Revenue Service Criminal Investigation, and the City of New Orleans - Office of Inspector General. The U.S. Attorney’s Office would also like to acknowledge the assistance of the Metropolitan Crime Commission. Assistant U.S. Attorney and Senior Litigation Counsel Fred P. Harper, Jr. and Assistant U.S. Attorney Sharan Lieberman are in charge of the prosecution.
Former Chickasaw Country Club Clerk Indicted for FraudRead the Press Release
Memphis, TN – Sue M. Winfrey, age 58, of Memphis, TN, was indicted yesterday by a federal grand jury on charges of wire fraud, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.
The seven count indictment alleges that beginning in 2003 and continuing until August 2013, Winfrey, a former payroll clerk at Chickasaw Country Club, submitted fraudulent payroll data to Chickasaw’s payroll processor, Paychex of New York. The indictment alleges that as a result of the submission of the fraudulent payroll data, Winfrey unlawfully received approximately $736,000.00 which was deposited electronically into bank accounts she maintained at Bank of America.
Winfrey has been charged with seven counts of wire fraud. If convicted she faces up to 20 years in prison on each count and a fine of up to $250,000.00.
This investigation was conducted by the United States Secret Service. This case is being prosecuted for the government by Assistant United States Attorney Carroll L. Andre III.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Former Auburn City Clerk Sentenced for EmbezzlementRead the Press Release
TOPEKA, KAN. – The former city clerk of Auburn, Kan., was sentenced Friday to one year and a day in federal prison and ordered to pay more than $189,500 in restitution, U.S. Attorney Barry Grissom said.
Alice Riley, 61, Mayetta, Kan., pleaded guilty to one count of interstate transportation of stolen funds. In her plea she admitted the crime occurred beginning in 2009 while she was city clerk of Auburn, Kan., a town of 1,200 in Shawnee County. She issued duplicate payroll checks to herself and other unauthorized checks which she deposited into her personal accounts. She covered up the embezzlement by creating false entries in the city’s books and bank statements.
Grissom commended the FBI investigated and Assistant U.S. Attorney Richard Hathaway is prosecuting.Fayetteville, Illinois Woman Sentenced for Theft of Social Security Survivor BenefitsRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that Amber Dawn Adams, 34, of Fayetteville, Illinois, was sentenced today on an indictment charging that she committed theft of government funds. The district court sentenced Adams to three years of probation. Adams was also ordered to pay $9,059.00 in restitution back to the Social Security Administration and a $100 special assessment.
During her plea of guilty on July 1, 2014, Adams admitted that between March 2008 and August 2012, she was falsely claiming and receiving more than $9,000 in Title II – Survivor Benefits that were intended for the benefit of her child, when, in fact, the child did not live with her and Adams did not support the child between March 2008 and August 2012.
This is one of several fraud prosecutions on behalf of the Social Security Administration. On July 1, 2014, United States Attorney Stephen R. Wigginton said: “These cases are yet additional examples of the wide-spread fraud that plagues both state and federal programs that are in place to help those in our society who need that help the most. My office will continue to stand beside both federal and state agencies in taking every step necessary to find and prosecute those who steal from, and continue to defraud these vital programs. This is a theft from not only the needy, but from all of us.”
The investigation was conducted by the Social Security Administration, Office of Inspector General. The case was prosecuted by Assistant United States Attorney Ranley R. Killian.
Essex County, N.J., Man Sentenced to 70 Months in Prison for Being A Felon in Possession of A FirearmRead the Press Release
NEWARK, N.J. - An Essex County, N.J., man with a felony criminal record was sentenced today to 70 months in prison for carrying a loaded semi-automatic pistol, U.S. Attorney Paul J. Fishman announced.
Victor Lopez, 25, of Newark, was previously convicted of one count of being a felon in possession of a firearm following a three-day trial, in which the jury deliberated for four hours before returning the guilty verdict. U.S. District Judge Anne E. Thompson imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
Officers of the City of Passaic Police Department responded to a 911 call on Sept. 13, 2012, about a possible burglary in progress at an apartment building in Passaic, N.J., where they encountered Lopez leaving the building.
Officers stopped Lopez, who appeared nervous, and found a gun in his back pocket. The .380 caliber semi-automatic handgun was loaded with seven bullets, including one in the chamber. Four of the bullets were hollow-point rounds.
In addition to the prison term, Judge Thompson sentenced Lopez to three years of supervised released.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge George Belsky, and officers of the City of Passaic Police Department, under the direction of Deputy Chief Rosario J. Capuana, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Sara F. Merin and Jonathan W. Romankow of the U.S. Attorney's Office Criminal Division in Newark.
14-377
Defense counsel: Edward Washburne, Esq., Red Bank, N.J.
East St. Louis Man Sentenced to Nearly Eleven Years in Prison for Crack Cocaine OffenseRead the Press Release
Follow @SDILNewsAn East St. Louis man, convicted of possession of a controlled substance with intent to deliver, was sentenced to 130 months in federal prison on October 17, 2014, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Edward A. Banks, 42, of East St. Louis, Ill., received the 130 month sentence for possession of crack cocaine with intent to deliver. Following release from imprisonment, Banks will serve five years of supervised release. Banks pleaded guilty to the charges on July 9, 2014.
This case was investigated by the Metropolitan Enforcement Group of Southwestern Illinois (MEGSI) as part of its Operation Wild Wild East and prosecuted by Assistant United States Attorney Laura Reppert and Special Assistant United States Attorney Neal Hong.
East St. Louis Man Pleads Guilty to Firearm OffenseRead the Press Release
Follow @SDILNewsOn October 17, 2014, William Moore, a thirty year old East St. Louis man, pled guilty in Federal District Court, in East St. Louis, to Unlawful Possession of a Firearm by a Previously Convicted Felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Moore is scheduled for sentencing on January 29, 2015, at which at which time he faces a maximum potential sentence of ten years in prison and a fine of up to $250,000, not more than three years of supervised release after his prison term, and a mandatory special assessment of $100. Moore also agreed to the forfeiture of the two firearms involved in the offense. Court proceedings revealed that on December 30, 2013, United States Marshals executed a search warrant at Moore’s residence and located a Mossberg shotgun and a Colt revolver.
This case was investigated by the East St. Louis Police Department and the United States Marshals Service, and assigned to Assistant United States Attorney Steve B. Clark and Special Assistant United States Attorney Michael Hallock for prosecution.
Dundalk Man Sentenced to over 5 Years in Prison in Scheme to Burn Down House to Collect InsuranceRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Hassan Hammoud, age 60, of Dundalk, Maryland, today to 63 months in prison, followed by three years of supervised release, for conspiring to destroy a conspirator’s Maryland home by fire to collect $3 million in insurance proceeds. Judge Bennett entered an order requiring Hammoud to pay restitution of $828,773.
The sentence announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief James W. Johnson of the Baltimore County Police Department; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to his plea agreement, co-conspirator Saleh Fakhoury owned a home in Lutherville Maryland. Hammoud worked for Fakhoury at Alfeo’s, a pizza restaurant owned by Fakhoury. In 2007, Fakhoury bought a second home in Florida. By March 2009, Fakhoury owed over $200,000 to credit card companies, utilities and other service providers, as well as over $1.7 million to banks for the mortgages on the properties he owned.Fakhoury and Hammoud schemed to destroy Fakhoury’s home in Lutherville by arson. Fakhoury intended to collect the insurance and pay off his debts. Fakhoury agreed to pay Hammoud $20,000 to set his home on fire. The two agreed that when the insurance company paid Fakhoury, Fakhoury would pay $50,000 for having his house set on fire, and the money would be sent overseas. Hammoud purportedly hired others to set the fire.
On March 12 or 13, 2009, a fire was deliberately set at the Lutherville home. The fire self-extinguished and minimal damage was sustained. On March 14, 2009, a second fire was deliberately set using paint thinner. The home was completely destroyed. Fakhoury paid Hammoud the agreed upon $20,000 to have the house set on fire.
In September 2009, Fakhoury executed a sworn proof of loss to collect $3,155,197 in insurance. The loss statement was false, in that it claimed items were destroyed or damaged in the fire when, in fact, the items were not consumed in the fire, and the fire was intentionally set. The insurance company denied the claim but paid $828,773 to the mortgagor of the Maryland home. On December 2, 2011, Fakhoury filed a civil action against the insurance company in an effort to recover monies under the insurance policy, and claim over $3 million in compensatory damages.
Saleh H. Fakhoury, age 49, formerly of Lutherville, Maryland, previously pleaded guilty to his participation in the conspiracy and is scheduled to be sentenced on January 7, 2015 at 10:00 a.m. As part of his plea agreement, Fakhoury has agreed to dismiss the civil lawsuit he filed.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore County Police Department and IRS - Criminal Investigation for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Sandra Wilkinson and Judson T. Mihok, who prosecuted the case.
Dontre Mchenry Pleads Guilty to Sex Trafficking Teenage Girls Throughout MinnesotaRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of DONTRE D’SEAN MCHENRY, a/k/a “Dontre Sean McHenry,” a/k/a “Avon,” a/k/a “Rico,” 25, for recruiting and sex trafficking teenage girls throughout Minnesota. MCHENRY pleaded guilty today to sex trafficking of a minor before Judge David S. Doty in United States District Court in Minneapolis. The defendant is expected to be sentenced at a future court appearance.
Minneapolis Police Chief Janee Harteau said: “Dontre McHenry has been transforming vulnerable girls into products for sale for years. This vile and horrific behavior will not be tolerated and we are determined to track down these people and bring them to justice. The Minneapolis Police Department, along with our law enforcement partners, is committed to protecting our youth. Our thanks go out to the police departments from the cities of Roseville, St. Paul, and Rochester, along with the Homeland Security Investigators who worked so closely with us on this case, along with U.S. Attorney Andrew Luger, for his tenacity in charging cases like this.”
Special Agent in Charge of HSI St. Paul J. Michael Netherland said: "Sex traffickers are constantly on the hunt for vulnerable children they can exploit for their financial gain, which is a heartless crime. It is imperative for law enforcement to protect those who cannot protect themselves. HSI will continue to work in tandem with our law enforcement partners to identify, investigate, and assist in the prosecution of individuals who have exploited children."
Assistant U.S. Attorney Laura Provinzino, who is in charge of human trafficking prosecutions, said: “Sex trafficking of girls is a very real problem in Minnesota. We will continue to be aggressive in the prosecution of these cases to protect our young people from the manipulation and violence that causes them to be sold for sex. Today, Dontre McHenry is being held accountable for his role in recruiting and trafficking the most vulnerable girls in our state – runaways, recent immigrants, and girls in foster care. Protecting our children from violent and manipulative predators like this defendant is a central mission for the U.S. Attorney’s Office and for our law enforcement partners.”
According to the defendant’s guilty plea and documents filed in court, from at least January 2013 until March 2014, MCHENRY recruited at least three girls under the age of 18 and prostituted them for his own financial benefit. MCHENRY advertised girls on backpage.com and in chatrooms, and made a sexually-explicit video of a 15-year-old victim, which was sent out to prospective “johns.” MCHENRY directed the victims about how to talk to men on chat lines, what rates to charge for various sex acts, and how to set up “dates.” The victims were instructed to, and did, give all of the money they were paid for sex acts to the defendant.
According to documents filed in court, on March 13, 2014, Minneapolis police executed a search warrant at a motel room in Roseville, Minnesota, which was previously occupied by MCHENRY and victims. During the search, investigators discovered, among other evidence, handwritten notes and a book entitled “Pimpology: The 48 Laws of the Game.” The handwritten notes included references to trafficking and prostitution, as well as questions that referred to recruiting and coercing minors. MCHENRY also had photos on his cellphone of two victims in their underwear, as well as numerous text message conversations from customers arranging to meet with victims to purchase sex.
This case is the result of an investigation conducted by Homeland Security Investigations, the Minneapolis Police Department, the St. Paul Police Department, the Rochester Police Department, and the Roseville Police Department.
Assistant U.S. Attorneys Laura M. Provinzino and Melinda A. Williams are prosecuting the case.
Defendant Information:
DONTRE D’SEAN MCHENRY, a/k/a “Dontre Sean McHenry,” a/k/a “Avon,” a/k/a “Rico,” 25
St. Paul, Minn.
Convicted:
• Sex Trafficking of a Minor, 1 count###
Donahoo Sentenced to 48 Months in Federal Prison After Pleading Guilty to Wire Fraud, Money Laundering, and Failure to File Tax Return in Investment Scheme;Read the Press Release
Ordered To Pay Restitution Of $2,739,501.17 To VictimsSALT LAKE CITY - James Ronald Donahoo, II, age 36, of Pleasant Grove, who pled guilty to wire fraud, money laundering, and failure to file a tax return in June, will serve 48 months in federal prison. U.S. District Judge Dee Benson imposed the sentenced Thursday afternoon in U.S. District Court in Salt Lake City.
Donahoo must serve three years of supervised release after he finishes his federal prison sentence and pay $2,739,501.17 in restitution to victims of the fraud. A forfeiture money judgment has been entered in the same amount.
Donahoo’s convictions stem from a scheme to defraud individuals and companies he recruited to invest in Paradigm Investing, Inc., a Utah corporation he exercised control over.
As a part of the plea agreement, Donahoo admitted that he misrepresented to investors that if they would invest in Paradigm, they would make a 1 to 3 percent return on their investment, which would be paid out monthly. Paradigm never earned any revenues on any of its purported investments from which interest payments could have been made.
Donahoo admitted he told investors that Paradigm was in the business of making bridge loans or “hard money loans” to small businesses. According to the plea agreement, Paradigm did invest approximately $1.5 million in various businesses. However, the investments were not in bridge loans or hard money loans at Paradigm’s investors were told. Instead, businesses that received money were run by Donahoo’s friends, associates, or family members.
He created false bank statements for Paradigm that he showed to investors to convince them that the investment was safe, low risk, and a good investment. He also told investors that the risk was mitigated by the fact that for every dollar invested, he had a dollar in the bank.
Donahoo made payments to investors totaling more than $267,000 out of investor funds in furtherance of what was a Ponzi scheme.
Donahoo admitted that on or about Dec. 5, 2008, he caused two investors to send a $100,000 wire transfer from California to Utah as an investment in Paradigm. On about December 11, 2008, he purchased fur coats in Park City in excess of $10,000. He admitted in the plea agreement that he knew this transaction involved money obtained from his criminal scheme.
He also admitted that he did not file a tax return for 2008, even though he transferred funds from the Paradigm bank account to his personal bank account totaling $335,000. He used those funds for personal purposes.
The case was investigated by special agents of IRS-Criminal Investigation and prosecuted by the U.S. Attorney’s Office in Salt Lake City.
Deli Shop Operator Pleads Guilty to Food Stamp FraudRead the Press Release
Buffalo, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Yousef Yafai, 31 of Buffalo, NY, pleaded guilty before U.S. District Court Judge Richard J. Arcara, to unauthorized acquisition of food stamp benefits. The charge carries a maximum penalty of 20 years in prison, a fine of $250,000or both.
Assistant U.S. Attorney Michael DiGiacomo, who is handling the case, stated that the defendant operated a deli shop known as Hollywood Nights Prime Shop on Jefferson Avenue in Buffalo. Between October 2008 and January 2011, Yafai knowingly purchased, from food stamp recipients, food stamp benefits in exchange for cash at less than their full value.
Sentencing is scheduled for February 17, 2015 at 1:00 p.m. before Judge Arcara.
The plea was the culmination of an investigation on the part of Special Agents of the United States Department of Agriculture, Office of Inspector General, under the direction of William G. Squires Jr., Special Agent in Charge, Northeast Region.Davenport Man Sentenced on Federal Marijuana ConspiracyRead the Press Release
DAVENPORT, IA – On October 17, 2014, Edwin James Goodwin, age 36, of Davenport, Iowa, was sentenced by United States District Judge Stephanie M. Rose to 60 months imprisonment for conspiracy to distribute at least 100 kilograms of marijuana, announced United States Attorney Nicholas A. Klinefeldt. Goodwin was also ordered to serve four years of supervised release following the imprisonment and to pay $100 towards the Crime Victims Fund.
Beginning in approximately July 2008 and continuing until about July 31, 2012, Goodwin conspired with other persons to distribute marijuana in the Davenport, Iowa, area. Specifically, during the above-mentioned time period Goodwin regularly sold multiple pound quantities of marijuana directly to his co-defendant Marqueis Letrell Lewis and other persons in Davenport for further distributions to various customers in the Davenport area. Over the course of the conspiracy Goodwin distributed over 700 kilograms of marijuana. Lewis pled guilty to conspiracy to distribute at least 100 kilograms of marijuana and was sentenced by Judge Rose in January 2014 to 113 months imprisonment. Goodwin also forfeited $58,433.27 to the government as proceeds derived from Goodwin’s drug trafficking activities.
This case was investigated by the Davenport, Iowa, Police Department, the Iowa Department of Narcotics Enforcement, and the United States Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release)
Cuban Sentenced for Illegal Re-entryRead the Press Release
ALBANY, NEW YORK – Rafael Cantin-Echevarria, 36, a citizen of Cuba who had been living in Stafford, Virginia, was sentenced on October 15, 2014 to serve 70 months in prison followed by two years of supervised release for illegally reentering the United States following removal by Senior United States District Court Judge Lawrence E. Kahn announced United States Attorney Richard S. Hartunian and Patrol Agent in Charge Norman Lague of United States Border Patrol, Champlain Station. Cantin-Echevarria had pled guilty in June. Following the completion of the term of imprisonment, the Department of Homeland Security will process Cantin-Echevarria for removal from the United States.
In May 2014, United States Border Patrol agents arrested Cantin-Echevarria after he was found hiding in the woods south of the border near Champlain, New York. In September 2006, an immigration judge had ordered that Cantin-Echevarria be removed from the United States, but he remained in the country until March 2014 when he went to Canada.
The case was investigated by the United States Border Patrol, Champlain, NY, and prosecuted by Assistant United States Attorney Edward Grogan.
Computer Hacker Sentenced for Emailing Bomb Threat to Shopping MallRead the Press Release
PHILADELPHIA - David Barnhouse, 24, of Horsham, PA, was sentenced, on October 16, 2014, to 18 months in prison for hacking into his neighbor’s wireless router and using it to post a bomb threat on the website of the Willow Grove Park Mall. As a result of Barnhouse’s actions, the mall paid for increased security and the FBI, after tracing the threat to the neighbor’s router, executed a search warrant on the neighbor’s home. (The practice of making such false reports to bring police action against someone’s house is colloquially known as “swatting” – after the SWAT teams that law enforcement often uses to deal with such situations.)
On June 20, 2013, Barnhouse hacked into the Verizon FiOS router of his neighbor and, using their Internet service, posted the following message:
“We have planted an explosive device somewhere in the mall, and will detonate it unless all members of the Islamic faith imprisoned in the United States are freed by 7pm on June 23. Even if you search the mall for 72 consecutive hours, you will NEVER find it.”
In addition to the prison term, U.S. District Court Judge C. Darnell Jones, II ordered three years of supervised release and restitution to the mall for the costs of the increased security.
The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorneys Jeanine Linehan and Michael L. Levy.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Co-Conspirators Plead Guilty to Bribery Scheme in White Plains Federal CourtRead the Press Release
Preet Bharara, the U.S. Attorney for the Southern District of New York , Leslie R. Caldwell, the Assistant Attorney General of the Justice Department’s Criminal Division, and Michael E. Horowitz, the Justice Department Inspector General, announced that JOHANNES THALER, and RIZVE AHMED, a/k/a “Caesar,” a native of Bangladesh and co-conspirator of THALER, pled guilty today in White Plains federal court to bribery and conspiracy to commit honest services and wire fraud before U.S. District Judge Vincent L. Briccetti.
According to the Complaint, the Indictment, court hearings, and today’s plea proceeding:
Both THALER and AHMED admitted to participating in a bribery scheme with Robert Lustyik, a former FBI Special Agent in White Plains, whereby Lustyik sold confidential, internal law enforcement information to AHMED in exchange for cash.
Lustyik was an FBI Special Agent who worked on the counterintelligence squad in the White Plains Resident Agency. THALER was Lustyik’s friend, and AHMED was an acquaintance of THALER.
From about September 2011 through March 2012, Lustyik and THALER solicited payments of money from AHMED, in exchange for Lustyik’s agreement to provide internal, confidential documents and other confidential information to which Lustyik had access by virtue of his position as an FBI Special Agent. AHMED was a native of Bangladesh who sought confidential law enforcement information, including a Suspicious Activity Report, pertaining to a prominent Bangladeshi political figure who was affiliated with a political party opposing AHMED’s views (“Individual 1”). AHMED sought, among other things, to obtain information about Individual 1, to locate Individual 1, and to harm Individual 1 and others associated with Individual 1.
As part of the scheme, THALER and AHMED exchanged text messages, including text messages about a “contract” the terms of which would require AHMED to pay a $40,000 “retainer” and $30,000 “monthly” and, in return, Lustyik and THALER would “give [AHMED] everything [they] ha[d] plus set up [Individual 1] and get the inside from the party.”
Lustyik and THALER also exchanged text messages about how to pressure AHMED to pay them additional money in exchange for confidential information. For example, in text messages, Lustyik told THALER, “we need to push [AHMED] for this meeting and get that 40 gs quick . . . . I will talk us into getting the cash . . . . I will work my magic . . . . We r sooooooo close.” THALER responded, “I know. It’s all right there in front of us. Pretty soon we’ll be having lunch in our oceanfront restaurant . . . .”
As another example, in or about late January 2012, Lustyik, upon learning that AHMED was considering using a different source to obtain confidential information about Individual 1, texted THALER, “I want to kill [AHMED] . . . . I hung my ass out the window n we got nothing? . . . . Tell [AHMED], I’ve got [Individual 1’s] number and I’m pissed. . . . I will put a wire on n get [AHMED and his associates] to admit they want [a Bangladeshi political figure] offed n we sell it to Individual 1].” Lustyik further texted THALER, “So bottom line. I need ten gs asap. We gotta squeeze C.”
Lustyik and THALER accepted at least $1,000 from AHMED in exchange for the confidential FBI information, including a Suspicious Activity Report. Lustyik and THALER schemed to obtain additional monthly cash bribes from AHMED, in increments of tens of thousands of dollars, in exchange for additional confidential law enforcement information about Individual 1 and for assistance in having criminal charges against a Bangladeshi political figure dismissed.
THALER, 51, of New Fairfield, Connecticut, pled guilty to one count of bribery and one count of conspiracy to commit honest services and wire fraud. He faces a maximum sentence of 35 years in prison. THALER is scheduled to be sentenced by Judge Briccetti at 11:30 a.m. on January 23, 2015.
AHMED, 35, of Danbury, Connecticut, pled guilty to one count of bribery and one count of conspiracy to commit honest services and wire fraud. He faces a maximum sentence of 35 years in prison. AHMED is scheduled to be sentenced by Judge Briccetti at 2:30 p.m. on January 23, 2015.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Charges against Lustyik, the other defendant who was charged with THALER and AHMED, remain pending. These charges are merely accusations, and the defendant is presumed innocent unless and until proven guilty. Trial is scheduled to begin on November 17, 2014.
This case was investigated by the Department of Justice Office of the Inspector General. The case is being prosecuted by Trial Attorney Emily Rae Woods of the Justice Department’s Public Integrity Section and Assistant U.S. Attorney Benjamin Allee of the White Plains Division of the U.S. Attorney’s Office for the Southern District of New York.
Lustyik Et Al.Indictment
LustyikEtAlComplaint signed (2)