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24 November 2014
Franklin County Man Sentenced to 24 Years for Child Exploitation and Child Pornography CrimesRead the Press Release
St. Louis, MO – GARY A. DOTSON was sentenced to 24 years in prison for child exploitation and child pornography offenses.
According to court documents, between 2010 and 2012, Dotson produced child pornography involving one victim and attempted to produce child pornography involving another victim. Both victims were under the age of twelve at the time of the offense. In addition, between 2011 and 2012, Dotson actively participated in an online community centered on trafficking in child pornography. Within this community, Dotson received and transported child pornography over the internet on an almost daily basis. As he traded child pornography, Dotson also repeatedly notified community members that he was seeking “custom” child pornography produced specifically for him. One such notice included Dotson’s request that a member produce and send him an image of a child engaged in a sexual act while holding a sign with a message written specifically for him.
Dotson, Pacific, Missouri, pled guilty in August to one felony count each of production of child pornography, attempted production of child pornography, notice and advertisement for child pornography, receipt of child pornography and transportation of child pornography. He appeared today for sentencing before United States District Judge John A. Ross.
This case was investigated by the Federal Bureau of Investigation, the Franklin County Sheriff’s Department and the Regional Computer Crimes Education and Enforcement Group (RCCEEG). Assistant United States Attorney Charles Birmingham prosecuted the case for the U.S. Attorney's Office.
Former State Police Forensic Analyst Pleads Guilty to Possession of Child PornographyRead the Press Release
Charleston, W.Va. – A 48-year old Kanawha County man faces up to 20 years in prison after pleading guilty today to possession of child pornography, U.S. Attorney Booth Goodwin announced. Jeffrey Erra Osborne, of Clendenin, West Virginia entered a guilty plea before United States District Judge John T. Copenhaver, Jr.
Osborne was formerly employed with the West Virginia State Police for approximately 21 years. He was most recently employed as a West Virginia State Police Forensic Analyst. Osborne admitted that on January 17, 2014, he possessed pictures of prepubescent minors engaged in sexual acts. The images were located on his personal computer at his home. As part of the agreement, Mr. Osborne will abandon certain computers, hard drives, and electronic storage devices seized from him at the time of the execution of the search warrant.
The court scheduled sentencing for Osborne for February 10, 2015.
The West Virginia Internet Crimes Against Children Task Force and the West Virginia State Police conducted the investigation. Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution.
This case is being brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Former Savannah-Chatham Metropolitan Police Chief Convicted on Extortion, Gambling, Obstruction, and Other ChargesRead the Press Release
Savannah, GA: Former Savannah-Chatham Metropolitan Police (SCMPD) Chief Willie Clinton Lovett, 66, was convicted last week by a federal jury on charges of extortion, participating in an illegal gambling operation, conspiring to obstruct the enforcement of state criminal laws, and providing false statements to federal agents. United States District Court Judge William T. Moore, Jr. presided over Lovett’s 5-day jury trial.
United States Attorney Edward J. Tarver stated, “We are pleased with the jury’s verdict. For over a decade, Mr. Lovett chose to be the person he was sworn to protect the community against; that is, a criminal. While the public should be reminded that the vast majority of law enforcement officers live by their oaths, the public should also know that this Office will continue to work tirelessly with our FBI partners to investigate, prosecute, and convict criminals in police clothing. While we mark an end to a sad chapter in Savannah’s law enforcement history, this Office looks forward to continuing our work with new leadership to combat the violent crime that plagues our communities.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The conviction of former Police Chief Lovett concludes an extensive federal investigation that was initiated based on the numerous allegations of criminal conduct by Lovett. The FBI, being tasked with oversight on such allegations of public corruption, embarked on a sensitive but necessary investigation that ultimately furthers the public’s trust in those that serve them. The FBI thanks the hard work of those prosecutors that presented this case as well as that of the jurors who listened to and deliberated the facts of this case.”
According to evidence presented during the trial, for over a decade, Randall Wayne Roach and others operated an illegal gambling business in Savannah during holiday celebrations, such as St. Patrick’s Day, New Year’s Day, and other events. The illegal gambling business operated in violation of Georgia gambling laws, but free from law enforcement intervention. As a Major and then Chief of SCMPD (formerly the Savannah Police Department), Lovett extorted cash payments from Roach. In return, Lovett provided protection to the illegal gambling business against enforcement of Georgia gambling laws. Lovett received cash payments on several occasions in exchange for protection against the enforcement of the criminal gambling laws of the State of Georgia, which payments came from the proceeds of the illegal gambling business. Lovett then knowingly provided false information to FBI agents investigating the case about his relationship with Roach and the gambling operation. Roach pled guilty before Lovett’s trial to his role in the criminal activities. Roach testified against Lovett, detailing his gambling operation and the cash payments made to Lovett for protection.Lovett was convicted of one count of aiding a gambling operation, one count of conspiring to obstruct the enforcement of state gambling laws, two counts of extortion, and two counts of providing false statements. Lovett was acquitted on three additional counts of extortion. Lovett faces a maximum sentence of 60 years in prison, a $1,500,000 fine, and 3 years of supervised release. A sentencing hearing will be scheduled upon completion of a presentence investigation by the United States Probation Office. Lovett was allowed to remain on a bond pending his sentencing.
Mr. Tarver commended the hard work and dedication of the FBI, which investigated the case. Special Agent Joshua W. Hayes led the FBI’s investigation.
First Assistant United States Attorney James D. Durham and Assistant United States Attorney R. Brian Tanner prosecuted the case on behalf of the United States. Any questions should be directed to Mr. Durham at (912) 341-7842.
Former Sandia Corporation Scientist Sentenced for Taking Government Property to ChinaRead the Press Release
ALBUQUERQUE – Jianyu Huang, a scientist formerly employed by Sandia Corporation (Sandia) at Sandia National Laboratories (SNL), was sentenced to a term of imprisonment of a year and a day for the crimes of making a false statement within the jurisdiction of the Department of Energy (DOE), and unlawfully transporting stolen government property in interstate and foreign commerce. The sentence was announced by U.S. Attorney Damon P. Martinez and Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division.
Huang, 46, a naturalized U.S. citizen from the People’s Republic of China who resides in Albuquerque, N.M., was arrested in June 2012, on a six-count indictment charging him with misusing U.S. government resources and equipment to conduct research for Chinese research institutions and with falsely stating that he did not intend to take U.S. government equipment with him on a trip to China. The indictment subsequently was superseded to add an interstate transportation of converted property charge and a theft of government property charge. Huang was employed by Sandia until his employment was terminated in late April 2012. On August 25, 2014, Huang pleaded guilty to the false statement and transportation of stolen property charges.
SNL is a government-owned research facility operated by Sandia Corporation for DOE National Nuclear Security Administration (NNSA) that is responsible for ensuring the safety of the nation’s nuclear stockpile; enhancing the security of energy and other critical resources; reducing the proliferation of weapons of mass destruction; addressing threats to national security; and protecting the nation against terrorism. The Center for Integrated Nanotechnologies (CINT) is a DOE user facility and science research center devoted to establishing scientific principles that govern the design, performance, and integration of materials on the atomic and molecular scale, located at SNL. CINT is comprised of a core facility at Sandia and a Gateway Facility at Los Alamos National Laboratory.
In light of the sensitivity of SNL’s work, all Sandia employees are required to report to the Sandia Office of Counterintelligence (SOC) any substantive relationship with foreign nationals, including associations that involve meeting and sharing work-related information. Sandia employees also are required to submit to interviews with SOC before international travel on official business, and are prohibited from bringing government-owned equipment on international travel without prior approval.
Huang was employed by Sandia at CINT, where he worked in an unclassified open science facility without access to classified national security information. As a Sandia employee, Huang was prohibited from bringing government-owned equipment on international travel without prior approval.
Counts 1 through 5 of the second superseding indictment charged Huang with federal program fraud and alleged that between Jan. 2009 and Jan. 2012, Huang unlawfully and without authority used DOE equipment, materials and property to conduct research for businesses and universities in the People’s Republic of China. Count 6 charged Huang with making a false statement charge to a federal officer and alleged that, in June 2011, Huang falsely represented to a counterintelligence officer that he would not take any U.S. government electronic equipment with him on an upcoming trip to the People’s Republic of China. The statement was false because Huang knew that he intended to take a U.S. government computer and hard-drive to the People’s Republic of China on that trip, and did in fact take that equipment with him. Count 7 charged Huang with the interstate transportation of converted property charge and alleged that between June 30, 2011 and July 18, 2011, Huang unlawfully transported a DOE-owned laptop computer and computer-related media in interstate and foreign commerce. Count 8 charged Huang with an embezzlement charge and alleged that between April 25, 2012 and June 2, 2012, Huang embezzled electronic files and documents, including research proposals, belonging to DOE that came into his possession by virtue of his employment with SNL.
In his plea agreement, Huang admitted taking a trip to China in July 2011, for the purpose of attending and making a presentation at a research conference. Huang acknowledged that in seeking and obtaining Sandia’s permission to participate in the conference, he represented that he would not take any DOE-owned equipment with him. Huang also admitted deliberately lying to a counterintelligence office when he made the representation because he intended to take his DOE-owned laptop on the trip.
Huang admitted taking a DOE-owned laptop computer with him when he traveled to China on June 30 and July 1, 2011, even though he knew that he did not have permission to do so. In so doing, Huang unlawfully converted the laptop computer to his own use. According to Huang’s plea agreement, U.S. Customs and Border Protection agents seized the DOE-owned laptop from Huang’s baggage when he returned to the United States on July 18, 2011, after Huang admitted that he did not have permission to take the laptop computer out of the country.
At this afternoon’s hearing, the court accepted the terms of the plea agreement and sentenced Huang to a year and a day in federal prison followed by a year of supervised release.
The case was investigated by the Albuquerque Division of the FBI and prosecuted by Assistant U.S. Attorney Jonathon M. Gerson.Former Owner of Defunct Chicago Rush Arena Football Team Arrested on Federal Bankruptcy and Wire Fraud ChargesRead the Press Release
CHICAGO — The former owner of the defunct Chicago Rush Arena Football League team was arrested today on federal fraud charges for allegedly concealing certain business interests and assets from creditors and overstating his net worth in connection with his purchase and operation of the indoor football team in 2013. DAVID STARAL, JR., was charged with one count each of bankruptcy fraud and wire fraud in a criminal complaint that was filed Friday in U.S. District Court and unsealed this morning following his arrest at his residence in Kenosha, Wis.
Staral, 35, formerly of Chicago, is scheduled to appear at 11:30 a.m. today before U.S. Magistrate Judge Geraldine Soat Brown in Federal Court.
The bankruptcy fraud count alleges that Staral schemed to discharge more than $900,000 in unsecured debt, while concealing from his creditors and the bankruptcy trustee additional businesses he was involved with, income he had received before filing for bankruptcy, and at least two personal bank accounts that he had when he filed a voluntary bankruptcy petition on Jan. 7, 2013. Staral allegedly failed to disclose in his bankruptcy filings his interest in an investment company called Star Julin Equity Partners and testified falsely under oath in a bankruptcy proceeding that he was unemployed and had no occupation after he had just purchased, and was serving as the manager of, the Chicago Rush.
Staral allegedly fraudulently purchased the Chicago Rush when, during purchase negotiations in February 2013, he falsely represented to the Arena Football League’s commissioner that he had a personal net worth of more than $5 million. In fact, Staral had filed for bankruptcy the month before and claimed to have a negative net worth. The purpose of Staral’s scheme was to enable him to purchase the Chicago Rush and benefit financially from ownership, while concealing that he did not have the financial ability to purchase and operate the team, according to an FBI affidavit.
Staral knew the requirements imposed upon him when filing for bankruptcy because he had previously filed a Chapter 7 bankruptcy petition in June 2002, resulting in the Bankruptcy Court discharging approximately $280,000 in debts and providing him with a fresh start, the affidavit states.
In 2012, Staral defrauded two individual investors in separate swindles, the complaint alleges as background. In February 2012, Staral obtained $39,000 from Individual A to use in opening two bars/restaurants in the Chicago area and never made the interest payments he promised or returned the principal, and instead used the money for his own benefit. In September 2012, Staral obtained $50,000 from Individual B and, instead of investing and trading the funds as he promised, Staral used the money to pay down a car loan, to generate cash for himself, and to pay personal expenses, among other things.
When Staral filed for bankruptcy in January 2013, he listed assets totaling $477,901, which were highly encumbered, and liabilities totaling more than $1.35 million, consisting primarily of mortgage and credit card debt and legal judgments against him. (In re David Staral, 13 B 585).
Staral’s bankruptcy filings allegedly concealed two bank accounts, as well as the fact that he had received $50,000 from Individual B and he did not list Individual A as a creditor. He also allegedly concealed his interest in Star Julin Equity Partners, an investment company he formed with Individual A just two months before the bankruptcy filing, Eventmark LLC, the bar/restaurant investment entity he managed, and his prior interest in FoodFunds, Inc. The alleged concealment and false statements prevented the bankruptcy trustee from properly administering Staral’s bankruptcy estate and prevented the trustee and creditors from conducting a proper inquiry into Staral’s assets and ability to pay creditors, the affidavit states.
In negotiations to purchase the Chicago Rush through Star Rush Football LLC, Staral allegedly claimed a personal net worth in excess of $5 million and did not disclose that he had filed for bankruptcy one month earlier, among other things. The commissioner of the Arena Football League told agents that the league would not have agreed to sell the team to Staral had it known about Staral’s alleged misrepresentations.
The charges further allege that Staral deposited approximately $5,000 from the sale of Chicago Rush tickets into his personal bank account and used some of the proceeds to cover personal expenses, including grocery and pharmacy payments, gas stations, and his car loan.
At a Bankruptcy Court creditors’ meeting on March 1, 2013, Staral allegedly made false statements under oath when he was questioned about his bankruptcy filings, knowing that he had concealed certain assets, failed to disclose certain debts, and failed to disclose his purchase of the Chicago Rush, among other things.
The arrest and charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The U.S. Trustee Program’s Chicago office assisted in the investigation.
Bankruptcy fraud carries a maximum of five years in prison and wire fraud carries a maximum of 20 years in prison, and each counts carries a maximum $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant United States Attorney Matthew F. Madden.
A complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
Former Newport Police Detective Captain to Serve Prison Sentence for Distributing Controlled SubstancesRead the Press Release
Criminal activity occurred while on duty
GREENEVILLE, Tenn. – On Nov. 24, 2014, James Finley Holt, 59, of Cosby, Tenn., was sentenced to serve 90 months in prison by the Honorable J. Ronnie Greer, U.S. District Judge. Holt pleaded guilty to an information charging him with distribution of controlled substances and possession of a firearm in furtherance of drug trafficking.
The conviction of Holt was the result of an undercover investigation, spanning several months, conducted by the Tennessee Bureau of Investigation (TBI) and the Fourth Judicial District Attorney’s office. An undercover investigation by the TBI from April 2014 through July 2014 revealed that Holt bought stolen property and sold it from convenience stores he owned with his wife in Newport Tenn. He also distributed hydrocodone and swapped the drug for stolen property. Many of the transactions occurred while Holt was on duty as a detective captain with the Newport Police Department. In July 2014 Holt was arrested and search warrants were executed by TBI and other agencies, both at his residence and the Newport Police Department. Evidence seized included pill bottles, pills, a short barrel shotgun and other items outlined in the factual basis for the plea agreement on file with the U.S. District Court.
Agencies assisting TBI included the Fourth Judicial District Attorney’s office, Tennessee Highway Patrol and Federal Bureau of Investigation. Assistant U.S. Attorney Donald Wayne Taylor represented the United States.
U.S. Attorney William C. Killian said, “Holt illegally used his badge and the trust placed in him for personal gain. While the quantity of drugs he distributed was small by federal prosecution standards, his conviction was important because he victimized the community he swore to protect. Furthermore, he betrayed the brave men and women of law enforcement who risk their lives to protect and serve. The U.S. Attorney’s Office will continue to make it a priority to support law enforcement in the effort to protect the integrity and honor of the profession from those who abuse the privilege of wearing a badge.”
Tennessee Bureau of Investigation Director Mark Gwyn stated, “This case was a blemish on the law enforcement community and those who do their best to uphold the law and maintain transparency. As a result of this investigation, it is my hope that we can all move forward and work harder to maintain public trust.”
Former Midcoast Community Bank Ceo Sentenced to 24 Months ImprisonmentRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that United States District Judge Richard G. Andrews sentenced James A. Ladio, the founder and former CEO of Midcoast Community Bank, Inc. (“Midcoast”), to a term of imprisonment of 24 months.
Ladio, age 58, of Wilmington, Delaware, pleaded guilty on December 17, 2013, to two counts of bank fraud and two counts of money laundering. The charges related to a nominee loan scheme, in which Ladio recruited two former MidCoast customers to obtain loans, the proceeds of which they loaned back to Ladio.
According to facts revealed during the sentencing hearing, Ladio had been involved in a decade-long “loan-swap” arrangement with former Wilmington Trust Co. (“WTC”) Market Manager Brian Bailey, in which the two men provided more than twenty (20) loans to each other totaling in excess of $1.5 million. In June 2010, WTC called Ladio’s loans and required him to enter into a Global Restructuring Agreement (the “Agreement”). Ladio engaged in the nominee loan scheme in substantial part to make interest and principal payments under the Agreement.
United States Attorney Oberly said, “The Court rightly punished Mr. Ladio for his serious fraud offenses, which negatively impacted his bank and other financial institutions. Today’s sentence sends a powerful message that bankers who abuse their positions of trust and engage in self-dealing will face significant consequences, including imprisonment and being banned from banking.”
“Ladio, former president and chief executive officer of MidCoast Community Bank and a leader in the Delaware banking community, was sentenced to spend the next 24 months in federal prison for bank fraud against three banks, including TARP bank Wilmington Trust Corporation said Christy Romero, Special Inspector General for TARP (SIGTARP). “For more than a decade involving more than 20 transactions, Ladio lined his pockets by fraudulently securing Wilmington Trust loans through former Wilmington Trust officer Brian Bailey in exchange for Ladio making sweetheart loans to Bailey. Ladio used the loans to pay off personal debt. SIGTARP and our law enforcement partners will hold accountable perpetrators who engage in fraud related to TARP. We will not rest in our efforts to identify and investigate those individuals, unravel their crimes, and support their prosecution. We are proud to stand together with the United States Attorney’s Office for the District of Delaware in our combined fight against bailout related crime.”
"In recent years illegal activity involving the banking industry has brought financial ruin to many Americans, as well as to several American banks,” said Richard Goss, IRS Criminal Investigation Acting Special Agent in Charge. “This joint investigative effort continues to demonstrate our resolve to ensure that the financial services industry will not be used for personal financial gain and will be operated in a fair and honest manner to preserve the public interest.”
The case was investigated by the Federal Bureau of Investigation, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), the Internal Revenue Service Criminal Investigation Division, and the Office of Inspector General, Board of Governors of the Federal Reserve System. Assistant United States Attorneys Robert F. Kravetz and Lesley F. Wolf prosecuted the case.
Former Hell’s Angels Member Sentenced for Methamphetamine TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Richard E. Riedman, 41, of Webster, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, methamphetamine, was sentenced to 37 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that the defendant’s prosecution stemmed from a joint federal, state and local investigation, which revealed that Riedman was responsible for obtaining quantities of methamphetamine from drug suppliers, including fellow Rochester Hell’s Angels member James H. McAuley, Jr. The defendant then distributed the drugs to others in the Western District of New York between 2004 and 2010.
This case was part of a larger investigation that resulted in the indictment and arrest of members and associates of the Rochester and Monterey (California) Hell's Angels for drug trafficking and racketeering-related offenses in February 2012. Along with Riedman, Monterey (California) Hell's Angels President Richard W. Mar, Rochester Hell's Angels members James H. McAuley, Jr., of Oakfield, NY, and Jeffrey A. Tyler, of Rochester, and Donna Boon, of Oakfield, and Gordon L. Montgomery, of Batavia, NY, were charged with conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of methamphetamine. One other defendant, Paul Griffin, of Blasdell, NY, was convicted of conspiracy to distribute, and to possess with intent to distribute, 50 grams or more of methamphetamine.
McAuley, along with Rochester Hell's Angels member Robert W. Moran, Jr., a/k/a Bugsy, and Gina Tata, both of Rochester, are charged in the same indictment with assault with a dangerous weapon in aid of racketeering activity, Moran and Tata are charged with conspiracy to commit assault with a dangerous weapon in aid of racketeering activity, and Tata and Timothy M. Stone, of Gates, NY, are charged with being accessories after the fact to the assault and conspiracy.
Riedman was previously convicted following a jury trial, in an unrelated case, of conspiracy to commit burglary of a railcar and theft of interstate shipment. Those charges related to the defendant’s involvement, along with four others, in stealing more than 64 gross tons of a high-grade scrap steel from a railcar at a CSXT rail yard in Batavia, New York in June 2009. Judge Siragusa sentenced Riedman to 37 months in prison in that case in January 2014.
Today’s sentencing was the culmination of an investigation on the part of the Federal Bureau of Investigation, the Genesee County Sheriff's Office, under the direction of Sheriff Gary T. Maha, the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the New York State Police, under the direction of Superintendent Joseph D'Amico, the City of Batavia Police Department, under the direction of Chief Shawn Heubusch, and the Village of LeRoy Police Department, under the direction of Chief Christopher K. Hayward.
Former Centreville Firefighter Guilty of Possessing A Firearm as A Convicted FelonRead the Press Release
Follow @SDILNewsA former firefighter for the Church Road Fire Protection District in Centreville, Illinois, pleaded guilty to being a felon in possession of a firearm on November 24, 2014, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Derrick N. Henry, 44, of Alorton, Illinois, pled guilty to possessing firearms while he was serving a state sentence of intensive probation resulting from a domestic violence conviction.
Court documents revealed that on March 7, 2014, at approximately 7:00 AM, the St. Clair County Probation Department conducted a compliance check of high-risk probationers who were serving terms of intensive probation for state-court criminal violations. A St. Clair County probation officer was assigned to go to Derrick Henry’s home to verify whether Henry was complying with the terms of his intensive probation. The probation officer conducted a search of the residence and found five long guns (rifles and shotguns) in plain view leaning against the corner of the wall immediately adjacent to the door of a locked bedroom. Four of the weapons were unloaded, but one of the .22 caliber rifles was loaded with a magazine and had a live round in the chamber. Additional ammunition was found inside of the home. Henry denied knowing that the guns were in the locked room, however, the key to the door was found inside of Henry’s pants pocket.
Unlawful possession of a firearm by a convicted felon is punishable by not more than 10 years in federal prison, and/or a $250,000 fine, or both, and not more than three years of supervised release. However, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing. Henry will be sentenced on March 7, 2015.
The investigation was conducted by a probation compliance task force including agents from the Illinois State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, St. Clair County State’s Attorney, Marissa Police Department, Southwestern Illinois College Police Department, Southern Illinois University at Edwardsville Police Department, Millstadt Police Department, and the St. Clair County Probation Department. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft and Special Assistant United States Attorney Michael Hallock.
Former Carson Helicopter Vice President Pleads Guilty to Conspiring to Defraud the United States Forest ServiceRead the Press Release
Government to Seek Sentence Enhancement for the Reckless Risk of Death and Serious Bodily Injury Involved in the OffenseMedford, Ore. – Steven Metheny, 44, of Medford, Oregon pleaded guilty to Conspiracy to Commit Mail and Wire Fraud and the Making of False Statements in defrauding the United States Forest Service in procuring helicopter firefighting contracts in 2008.
In entering his guilty pleas before United States Magistrate Judge Mark D. Clarke, Metheny admitted to conspiring in the submission of false empty helicopter weights in Carson Helicopter’s contract bid proposals to the Forest Service in order to meet minimum contract specifications, thereby enabling Carson Helicopters to receive contract awards and money from the Forest Service that it would not have received otherwise. United States Attorney Amanda Marshall said, “This is a particularly important case. Submitting false information about helicopter payload capabilities in the bid process both defrauded the Forest Service and created a reckless risk of harm to those who used the information in firefighting operations. This includes those who were relying on the false information when a Carson helicopter crashed near Weaverville, California on August 5, 2008, killing nine and seriously injuring four others.” According to the plea agreement in this case, the U. S. Attorney’s Office will be seeking an enhancement to defendant’s sentence based on the offense involving the reckless risk of death or serious bodily injury.
Metheny Plea Agreement
Metheny IndictmentThe maximum sentence for the Conspiracy is 20 years in prison and Making False Statements is 5 years in prison with fines up to $250,000 for each offense. Sentencing is set for March 2, 2015, at 10:00 a.m. before U.S. District Court Judge Owen M. Panner. Levi Phillips, former Carson Helicopter Director of Maintenance, pled guilty to Conspiracy to Commit Mail and Wire Fraud previously and his sentencing is currently scheduled for February 2, 2015.
The U. S. Attorney’s Office has worked with the Offices of Inspector General for both the Department of Agriculture and the Department of Transportation in Portland, Oregon and Seattle, Washington, and the FBI and the IRS in Medford, Oregon in the investigation and prosecution of this case. The case is being prosecuted by Assistant U. S. Attorney Byron Chatfield.
Former Bank Branch Manager Sentenced to 30 Months in Prison for Embezzling More Than $263,000 from BankRead the Press Release
CAMDEN, N.J. – A former branch manager for Newfield National Bank in Franklinville, New Jersey, was sentenced today to 30 months in prison for embezzling $263,864 from the bank, U.S. Attorney Paul J. Fishman announced.
Season Wengert, 32, of Franklinville, previously pleaded guilty before U.S. District Court Judge Robert B. Kugler to an information charging her with one count of bank embezzlement. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Wengert worked as the bank manager at the Franklinville Branch of the Newfield National Bank. From Sept. 4, 2007, through Jan. 7, 2013, Wengert embezzled funds by fraudulently conducting online computer transfers of money from 38 accounts belonging to 23 customers into accounts owned by her or her husband. She also withdrew money from customers’ accounts and deposited it into her accounts. As branch manager, Wengert was able to conceal her embezzlement by failing to note the fraudulent withdrawals in the customers’ passbooks and by transferring money through various customers’ accounts to cover shortages. When customers sought to withdraw money from an account which had been embezzled, Wengert would then transfer money from another victim’s account to cover the withdrawal and conceal her fraudulent conduct. Wengert stole $263,864 for her own use.
In addition to the prison term, Judge Kugler sentenced Wengert to three years of supervised release and ordered her to pay restitution of $261,654.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden.
14-415
Defense counsel: John C. Eastlack Jr. Esq., Cherry Hill, New JerseyFinancial Advisor Sentenced to 2 Years in Prison for Tax SchemeRead the Press Release
FRESNO, Calif. — Bay Area resident William James Kenney, 68, was sentenced today by United States District Judge Anthony W. Ishii to 24 months in prison for filing a false tax return with the Internal Revenue Service, United States Attorney Benjamin B. Wagner announced.
According to court documents, Kennedy sent tax returns to the Fresno IRS office in 2002, 2003, 2004 and 2005, in which he underreported his taxable income. As a financial advisor, Kennedy touted a variety of tax avoidance schemes to his clients, such as the use of corporation “soles” (a corporate form that enables religious leaders to hold property and conduct business for the religious entity) and debt elimination programs. Kennedy was compensated by his clients for his financial services, but failed to properly report that income on his tax returns. In 2002, he claimed an improper charitable deduction to an entity that was one of his own corporation soles. As a result of Kennedy’s conduct, the United States incurred a tax loss of approximately $627,000. As part of his plea agreement, Kennedy was ordered to pay restitution to the IRS in this amount.
Judge Ishii stated that the sentence he imposed was warranted because Kennedy committed a serious scheme that continued for at least four years, resulting in a loss to the IRS of over $600,000. This case was the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Mark J. McKeon prosecuted the case.
Failure to File Federal Taxes Charges Levied Against North Little Rock ManRead the Press Release
LITTLE ROCK – Christopher R. Thyer, Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Christopher A. Henry, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Nashville Field Office, announced that an Information was filed, on Gregory Warren, age 52, a resident of North Little Rock, for five counts of failure to file his federal income tax returns with the IRS.
According to the information that was filed, Warren received taxable income of $199,165.00, $228,291.00, $108,198.00, $80,336.00 and $100,985.00, for tax years 2007, 2008, 2009, 2010 and 2011, respectfully, which required him to file federal income tax returns with the IRS for each year. Knowing he was required to file, Warren willfully failed to file his personal tax returns for 2007 through 2011.
"The IRS Criminal Investigation Division takes tax violations of law very seriously," said Special Agent in Charge Christopher A. Henry of the Nashville Field Office. “It is important for the American taxpayers to have confidence that when they file and pay their taxes, their neighbors and co-workers are doing the same.”
The statutory penalty for failure to file federal income tax returns is not more than 1 year imprisonment and/or not more than a $25,000 fine with not more than 1 year supervised release.
The investigation was conducted by IRS Criminal Investigation.
Note: An Information is only an allegation of wrongdoing. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
El Centro Clinic Owner Pleads Guilty to Defrauding Medicare Out of over $1 MillionRead the Press Release
SAN DIEGO - Gevorg Kupelian, owner of the El Centro Clinic located at 485 Broadway Street in El Centro, California, pleaded guilty today to participating in a conspiracy that targeted the Medicare program and its beneficiaries.
Kupelian admitted to defrauding Medicare by billing for unnecessary procedures, pretending that patients were being seen by medical professionals, and billing for tests and services that were never actually provided.
At today’s hearing, Kupelian admitted that after he leased the premises used by the El Centro Clinic, he found a doctor, hired employees, and recruited “cappers” to bring Medicare beneficiaries to the clinic. While Kupelian and his co-conspirators operated the clinic to give the impression to beneficiaries and outside observers that patients were being seen by qualified medical professionals, in fact, patients would rarely see a doctor or other qualified medical professionals during visits to the clinic.
Kupelian and his co-conspirators caused tests to be performed on the recruited patients without regard to medical necessity, including allergy tests, breathing tests, bladder tests, EKGs, and ultrasounds – all for the purpose of generating bills to Medicare. Kupelian instructed employees that all patients were to undergo all of the tests offered by the clinic, without regard to the patients’ actual diagnoses. Kupelian also created “sample” lab sheets and billing forms with certain tests and diagnoses already requested, and directed employees to simply fill in patients’ names and Medicare beneficiary information. Some tests were never performed at all, and Kupelian inserted phony test results into patient files to make it appear that the tests had been done and results had been appropriately generated.
Kupelian admitted that through the El Centro Clinic, the conspirators fraudulently billed Medicare over $2.7 million and received over $1.285 million in payments. Of that amount, Kupelian’s management company received over $964,000.
Kupelian is next scheduled to appear before the Honorable Larry A. Burns on February 9, 2015 for sentencing.
DEFENDANTS Case Number: 14CR3419-LAB GEVORG KUPELIAN Age: 41 CHARGESCount 1: Conspiracy to commit health care fraud, in violation of 18 U.S.C. § 371.
INVESTIGATING AGENCY
Maximum Penalties: 5 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.Federal Bureau of Investigation
Health and Human Services, Office of the Inspector GeneralEagle Butte Man Charged with Assault and Victim TamperingRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault Resulting in Substantial Bodily Injury to an Intimate Partner, Assault with a Dangerous Weapon, and Victim Tampering.
Sydney Gilbert Garreau, age 36, was indicted on November 13, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 21, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about September 20, 2014, Garreau assaulted his intimate and dating partner with a dangerous weapon, which resulted in substantial bodily injury. He also knowingly intimidated, threatened, and corruptly persuaded his partner by threatening her with bodily injury or death if she reported the assault to law enforcement officials.
The charges are merely accusations and Garreau is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Garreau was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
District of Nebraska U.S. Attorney’s Office Collects over $14 Million Dollars in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
U.S. Attorney Deborah R. Gilg announced today that the United States Attorney’s office for Nebraska collected over Fourteen (14) Million Dollars in criminal and civil actions in Fiscal Year 2014. Of this amount, $1,247,000 was collected in criminal actions and $10,573,000 was collected in civil actions. Gilg stated, “Our collection figure represents nearly three times our annual operating budget and we are proud to have such an outstanding financial result for victims of crime and the taxpayers.”
Gilg cited the $10, 573,000 recovered from American Growers, a subsidiary of American Growers Insurance Company, as an example of collaboration between the United States Department of Agriculture (USDA), Federal Crop Insurance Corporation (FCIC) and the Nebraska Department of Insurance. Crop insurance coverage was provided to American Growers through a reinsurance program. American Growers failed to establish minimum liquidity which placed farmers’ crop insurance coverage at risk. The Risk Management Agency (RMA) of the Federal Crop Insurance Corporation intervened with the assistance of the Nebraska Department of Insurance to liquidate and hold funds for disbursement to creditors of American Growers. The United States Attorney’s Office successfully defended several competing creditor challenges to the RMA claim and was able to collect the funds.
Attorney General Eric Holder announced that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 United States Attorney’s offices and the main litigating divisions in that same period.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”Didier Conviction Re-Instated by Ninth CircuitRead the Press Release
MISSOULA – The Ninth Circuit Court of Appeals today re-instated the insurance fraud conviction of Christin Didier. Didier was convicted by a federal jury of seven counts of mail fraud and one count of conspiracy to commit mail fraud in Missoula on March 22, 2013, but in October of that year Senior U.S. District Court Judge Donald W. Molloy later acquitted Didier on a defense motion to overturn the verdict. The Circuit Court ruled that the district court had erred in entering the judgment of acquittal for Didier, reversed the order, and remanded the case to the district court for further proceedings.
Didier had not been sentenced when Judge Molloy vacated her conviction
Detroit Heroin Dealer Pleads Guilty in Federal Court in HuntingtonRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who was found in possession of heroin during execution of a search warrant pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Anthony M. Barnes, 38, of Detroit, Michigan, entered a guilty plea in federal court in Huntington to possession with intent to distribute heroin.
On April 8, 2014, officers with the Huntington Police Department executed a search warrant at 912 6th Street, Apartment 1A in Huntington. When officers entered the apartment, Barnes was in a bedroom attempting to destroy approximately 18 grams of heroin which officers recovered. Barnes admitted that he intended to sell the heroin in the Huntington area.
Barnes faces up to 20 years in federal prison, and is scheduled to be sentenced on February 23, 2015.
The FBI Huntington Violent Crimes Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Copley Man Sentenced to Nearly Five Years in Prison for Investment FraudRead the Press Release
A Copley man was sentenced to nearly five years in prison for operating a fraudulent investment scheme which caused investors to lose nearly $1.8 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Anthony Davian, 35, pleaded guilty earlier this year to one count of securities fraud, two counts of mail fraud, four counts of wire fraud, and seven counts of money laundering. He was sentenced to 57 months in prison and ordered to pay $1,787,679 in restitution, as well as forfeiting property.
“This defendant deceived clients to line his own pockets,” Dettelbach said. “We will continue to aggressively pursue cases in which investors are cheated out of their savings.”
Davian used his hedge fund, Davian Capital Advisers, LLC, to promote and sell securities to at least 20 investors across several states between Between 2008 and 2013, resulting in $1.8 million in overall investor loss, according to court documents.
Davian purported to sell securities in the form of shares in the various funds he created and controlled, including Davian Capital, Rubber City Gravity, Rubber City Pure Alpha, Cleveland Precious Metals Fund, and others. Instead, he used the investors’ monies to redeem earlier investors, enrich himself and pay off personal expenses, such as the purchase of an Audi Q7 Prestige, according to court documents.
The investigation revealed that Davian cajoled investors’ into giving him hundreds of thousands of dollars by claiming to manage hundreds of millions of dollars to make himself appear more sophisticated than he really was and by falsifying client account statements, according to court documents.
This case is being prosecuted by Assistant U.S. Attorneys Christos N. Georgalis, Matthew Cronin and James Morford following an investigation by agents of the United States Secret Service, the Internal Revenue Service and the United States Postal Service.
Continental Automotive Electronics and Continental Automotive Korea Agree to Plead Guilty to Bid Rigging on Instrument Panel ClustersRead the Press Release
Continental Automotive Electronics LLC and Continental Automotive Korea Ltd. both have agreed to plead guilty and to pay a single criminal fine of $4 million for their roles in a conspiracy to rig bids of instrument panel clusters installed in vehicles manufactured and sold in the United States, the Department of Justice announced today.
According to a one-count felony charge filed today in U.S. District Court for the Northern District of Georgia, Newnan Division, Continental Automotive Electronics LLC, based in Cheongwon, South Korea, and Continental Automotive Korea Ltd., based in Seongnam-si, South Korea, conspired to rig bids for instrument panel clusters sold to Hyundai Motor Co., Kia Motors Corp. and Kia Motors Manufacturing Georgia in the United States and elsewhere. In addition to the criminal fine, the companies have agreed to cooperate in the department’s ongoing investigation. The plea agreement is subject to court approval.
“As the Antitrust Division’s prosecution of auto parts matters like this one demonstrates, we will prosecute those who participate in international cartels targeting U.S. businesses and consumers,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “The Antitrust Division is working closely with competition enforcers around the world to ensure that companies and executives that engage in international cartel crimes find no refuge.”
The charged companies have acknowledged that they and their co-conspirators held meetings and conversations to discuss and agree upon allocation of sales of instrument panel clusters, and the bids and price quotations each would submit. The charged companies’ involvement in the conspiracy began as early as March 2004 and continued until May 2012.
Instrument panel clusters are a set of instruments located on the dashboard of a vehicle that contain gauges such as a speedometer, tachometer, odometer, and fuel gauge, as well as warning indicators for gearshift position, seat belt, parking-brake engagement, engine malfunction, low fuel, low oil pressure and low tire pressure.
Including Continental Automotive Electronics LLC and Continental Automotive Korea Ltd., 32 companies and 46 executives have been charged in the Justice Department’s ongoing investigation into the automotive parts industry. Each of the charged companies have either pleaded guilty or have agreed to plead guilty and have agreed to pay more than $2.4 billion in criminal fines. Of the 46 individuals, 26 have been sentenced to serve time in U.S. prisons.
Continental Automotive Electronics LLC and Continental Automotive Korea Ltd. are charged with bid rigging in violation of the Sherman Act, which carries maximum penalties of a $100 million criminal fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
The charges are the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charges were brought by the Antitrust Division’s Chicago Office and the FBI’s Montgomery, Alabama Field Office, with the assistance of the FBI headquarters’ International Corruption Unit. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1–888–647–3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Montgomery, Alabama Field Office at 334-263-1691.
Continental Information
Carbondale Resident Pleads Guilty to Crack Cocaine ConspiracyRead the Press Release
Follow @SDILNewsOn November 19, 2014, Maurice Christian, a/k/a “Reece,” 26, of Carbondale, Illinois, pled guilty to a one-count indictment charging conspiracy to distribute crack cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between 2013 and March 2014, in Jackson County. Evidence at the plea hearing established that Christian was involved with co-defendant Johnathan Buck, a/k/a “Buffalo,” and others in the distribution of crack cocaine in Carbondale. Buck, Christian and their associates were transporting crack cocaine from northern Illinois to Carbondale for distribution. On multiple occasions, Christian sold crack cocaine to a confidential source working for law enforcement.
The crack cocaine offense carries a penalty of up to 20 years in federal prison, to be followed by 3 years’ supervised release, and a fine of $1,000,000. Christian is currently being held without bond pending a March 25, 2015, sentencing hearing. Co-defendant Buck has previously pled guilty and is awaiting sentencing.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group, Carbondale Police Department, and Drug Enforcement Administration. The Jackson County State’s Attorney’s Office assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Californian Charged with Alien SmugglingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Fabian Hugo De Mestico, 47, of California, appeared on November 21, 2014 in United States District Court in Burlington following his arrest for alien smuggling. U.S. Magistrate Judge John M. Conroy released De Mestico on conditions pending his next court hearing.
According to court records, in the early evening of November 20, a Border Patrol Agent near Canaan, Vermont noticed footprints on a back road that parallels the border, which suggested that someone had walked into the United States from Canada without reporting to a port-of-entry. The agent alerted other agents in the area. Another agent noticed a car, which contained two men, pulling out of a gas station in Canaan. The car had an out-of-state license plate which was registered to a car rental company. The agent stopped the vehicle, which was driven by De Mestico. The passenger was a Polish citizen who has no immigration status in the United States. Subsequent investigation showed that De Mestico had flown to Vermont from California on November 19, rented a car here and then driven to Montreal. De Mestico met the alien in Canada, drove him to a point north of the border, and then let him walk across the border. De Mestico picked the alien up near Canaan and planned to drive him to Boston.
The United States Attorney emphasizes that the charge against De Mestico is merely an accusation and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, De Mestico faces up to ten years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
De Mestico is represented by Assistant Federal Public Defender Steve Barth. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Buffalo Man Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Hector Rivera, 44, of Buffalo, NY, who was convicted of conspiracy to distribute cocaine and heroin, was sentenced to 78 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Mary Clare Kane, who handled the case, stated that between August of 2008 and June 5, 2009, the defendant conspired with others to possess and sell heroin and cocaine in the City of Buffalo. During the investigation, law enforcement officers utilized a number of confidential sources and made a number of undercover purchases of cocaine and heroin prior to obtaining authority to intercept the telephone calls of Rivera. Intercepted conversations revealed that defendant secured kilogram quantities of cocaine from a source of supply based in San Juan, Puerto Rico. In addition, investigators learned that that Rivera also conducted heroin transactions When he was arrested in May of 2008, officerss seized 58 bundles of heroin and approximately $4,831 in U.S. currency.
The sentencing is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division and the New York State Police, under the direction of Major Michael Cerretto.
Bristol Man Sentenced to More Than 5 Years in Federal Prison for Illegally Possessing FirearmsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that WAYNE EVANGELISTA, also known as “Wayne Nance,” 36, of Bristol, was sentenced today by Senior U.S. Judge Warren W. Eginton in Bridgeport to 63 months of imprisonment, followed by three years of supervised release, for illegally possessing firearms.
According to court documents and statements made in court, prior to March 2011, EVANGELISTA had been convicted of multiple felony offenses in Connecticut state court and federal court in Connecticut, including criminal possession of a firearm (twice), third degree burglary, second degree forgery, bank fraud, and both first and second degree larceny.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
In March 2011, EVANGELISTA convinced another individual, who had a valid firearms permit, that he was a Bail Enforcement Agent. In March and April 2011, EVANGELISTA persuaded the individual to purchase a .40 caliber pistol and a .380 caliber pistol on his behalf, and EVANGELISTA took possession of the firearms after they were purchased. Also in April 2011, EVANGELISTA possessed a 9mm pistol that he cleaned for the same individual who had purchased the other two firearms for him.
EVANGELISTA has been detained since his arrest on March 15, 2012. On April 5, 2013, he pleaded guilty to three counts of possession of a firearm by a previously convicted felon.
This matter was investigated by the Connecticut State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Robert M. Spector.
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(203) 821-3722 [email protected]Bladensburg Man Sentenced to over 16 Years in Prison in Bank Fraud SchemeRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Sherif Akande, age 36 of Bladensburg, Maryland, today to 199 months in prison followed by five years of supervised release for conspiring to commit bank fraud, bank fraud and aggravated identity theft. Judge Titus also entered an order that Akande pay restitution of $111,052.67.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kathy A. Michalko of the United States Secret Service - Washington Field Office; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
According to the statement of facts to which Mr. Akande agreed at his previous guilty plea, from January 2010 to May 2012, Sherif Akande, his brother Lateef Akande, and others recruited individuals to provide personal bank information regarding existing bank accounts in their names, or to open new accounts in their own names. Sherif Akande and others then caused third-party checks to be deposited into those bank accounts. For any of the checks that cleared, the co-conspirators would withdraw monies from those accounts.
For example, on September 20, 2010, Sherif Akande caused a co-conspirator to open a business account at a bank, and deposit a check in the amount of $43,750, drawn on the account of two unknowing victims. The memo line on the check contained the words “Final Settlement (Insurance)”, even though the co-conspirator had no insurance settlement—and had never met—the two victims.
Lateef Akande, age 36, of Bladensburg, Maryland, previously pleaded guilty to his participation in the scheme, was sentenced to 175 months in prison and ordered to pay restitution of $418,042. Antonio Holmes, age 29, of Washington, DC, also pleaded guilty, was sentenced to 30 months in prison, and ordered to pay restitution of $363,738.71.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the Secret Service and U.S. Postal Inspection Service for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys David I. Salem and Thomas P. Windom, and Special Assistant United States Attorney Margaret Moeser, of the U.S. Justice Department’s Asset Forfeiture & Money Laundering Section, who prosecuted the case.Attorney General Holder Statement on the Conclusion of the Grand Jury Proceeding in the Shooting of Michael BrownRead the Press Release
Attorney General Eric Holder released the following statement Monday regarding the conclusion of the St. Louis County grand jury proceeding in the shooting of Michael Brown:
“While the grand jury proceeding in St. Louis County has concluded, the Justice Department’s investigation into the shooting of Michael Brown remains ongoing. Though we have shared information with local prosecutors during the course of our investigation, the federal inquiry has been independent of the local one from the start, and remains so now. Even at this mature stage of the investigation, we have avoided prejudging any of the evidence. And although federal civil rights law imposes a high legal bar in these types of cases, we have resisted forming premature conclusions.
“Michael Brown’s death was a tragedy. This incident has sparked a national conversation about the need to ensure confidence between law enforcement and the communities they protect and serve. While constructive efforts are underway in Ferguson and communities nationwide, far more must be done to create enduring trust. The Department will continue to work with law enforcement, civil rights, faith and community leaders across the country to foster effective relationships between law enforcement and the communities they serve and to improve fairness in the criminal justice system overall. In addition, the Department continues to investigate allegations of unconstitutional policing patterns or practices by the Ferguson Police Department.
“Though there will be disagreement with the grand jury's decision not to indict, this feeling should not lead to violence. Those who decide to participate in demonstrations should remember the wishes of Michael Brown's parents, who have asked that remembrances of their son be conducted peacefully. It does not honor his memory to engage in violence or looting. In the coming days, it will likewise be important for local law enforcement authorities to respect the rights of demonstrators, and deescalate tensions by avoiding excessive displays—and uses—of force.”
Attorney General Holder Statement on Tim Heaphy Stepping Down as U.S. Attorney for Western District of VirginiaRead the Press Release
Attorney General Eric Holder released the following statement Monday on the resignation of U.S. Attorney Tim Heaphy for the Western District of Virginia:
“Over the past five years, Tim Heaphy has been an outstanding United States Attorney for the Western District of Virginia and a key national leader on a host of pressing criminal justice issues.
“Throughout his distinguished career -- from our days together in the U.S. Attorney’s Office for the District of Columbia, to his current post -- I have known Tim as a dedicated public servant and a champion of the cause of justice. He has been a fierce advocate for groundbreaking community outreach initiatives within and far beyond his district. And he has worked tirelessly to promote data-driven prevention, intervention, and reentry programs to improve public safety at the national level.
“As a talented attorney, a dedicated prosecutor, and a leader of both patriotism and principle, Tim Heaphy has been an indispensable member of the U.S. Department of Justice. From the prosecutions he has led to the policies he has championed, Tim's work has touched countless lives across Virginia and throughout the nation. I have been proud to count him as a friend. On behalf of our colleagues and the American people, I thank him for his service and wish him all the best in every future endeavor.”
Armed Career Criminal from Albuquerque Charged with Unlawfully Possessing Firearm in Santa Ana PuebloRead the Press Release
Purcella Prosecuted Under Federal “Worst of the Worst” Anti-Violence Initiative
ALBUQUERQUE- Joseph Ernest Purcella, III, 34, of Albuquerque, N.M., was arraigned today on an indictment charging him with being a felon in possession of a firearm and ammunition. Purcella entered a not guilty plea during today’s arraignment hearing.
Purcella was arrested on Oct. 30, 2014, on a criminal complaint alleging that he unlawfully possessed a firearm and ammunition in Sandoval County, N.M., on April 7, 2014. At the time, Purcella previously had been convicted of several felony offenses, including aggravated battery, burglary, battery on a police officer, trafficking a controlled substance, and possession of a controlled substance. Purcella subsequently was indicted on Nov. 19, 2014.
According to court filings, on April 7, 2014, officers of the Santa Ana Pueblo Police Department went to the Santa Ana Star Casino in response to a report of an armed robbery. They arrested Purcella, who was identified as the alleged robber, on state charges filed by the 13th Judicial District Attorney’s Office. The state charges were dismissed after federal charges were filed against Purcella.
Purcella has been in federal custody since his arrest and remains detained pending trial, which has yet to be scheduled. If convicted, Purcella faces an enhanced sentence of not less than 15 years in federal prison due to his status as an armed career offender.
U.S. Attorney Damon P. Martinez said that Purcella is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
This case was investigated by the Albuquerque office of Homeland Security Investigations and the Santa Ana Pueblo Police Department, with assistance from the 13th Judicial District Attorney’s Office. Assistant U.S. Attorney Jacob A. Wishard is prosecuting the case.
Charges in criminal complaints and indictments are merely accusations. A defendant is presumed innocent unless convicted beyond a reasonable doubt in a court of law.
Arizona Resident Pleads Guilty to Trafficking Large Load of Heroin and MethamphetamineRead the Press Release
BOISE – Jesse Ramirez-Orta, 27, of Phoenix, Arizona, pleaded guilty today to possession with intent to distribute five hundred grams or more of methamphetamine and one kilogram or more of heroin, U.S. Attorney Wendy J. Olson announced.
According to court documents, Ramirez-Orta and his co-defendant Marina Morales were traveling from Phoenix, Arizona to Seattle, Washington, in order to deliver 5.3 pounds of heroin and 4.2 pounds of methamphetamine. Ramirez-Orta was stopped for speeding in Twin Falls, Idaho. Neither Ramirez-Orta nor Morales had a valid driver’s license. The vehicle was impounded and the drugs were discovered in the trunk of the vehicle.
The charge carries a maximum punishment of up to life in prison and a mandatory minimum sentence of ten years imprisonment, a fine of up to $10,000,000, and a minimum term of five years of supervised release. Sentencing is scheduled for February 13, 2015, before U.S. District Judge Edward J. Lodge in Boise, Idaho. Co-defendant Marina Morales is scheduled for trial on December 16, 2014.
The case was investigated by the Twin Falls County Sheriff’s Office and the Drug Enforcement Administration.
Another Hunter Sentenced for Violating Migratory Bird ActRead the Press Release
WICHITA, KAN. – A hunter pleaded guilty and was sentenced Monday for violating the Migratory Bird Treaty Act when he and seven friends met in Kansas to hunt mourning doves, U.S. Attorney Barry Grissom said.
George Morgan, 52, Gordonville, Texas, was sentenced to a year on probation in which he is not allowed to hunt, fish or trap; a $2,000 fine; and $3,000 restitution to the state of Kansas.
Seven other hunters in the same party already pleaded guilty and were sentenced. The men admitted they violated the federal law protecting migratory birds when they participated in an annual opening weekend dove hunt in Graham County, Kan., on Sept. 1-2, 2013.
Morgan pleaded guilty to one count of exceeding the daily bag limit for mourning doves. The Migratory Bird Treaty Act classifies mourning doves as migratory game birds.
Morgan’s co-defendants included Daniel R. Dinkel, 63, Hill City, Kan.; Kent A. Webber, 52, Derby, Kan.; Evan Webber, 25, Derby, Kan.; Kenneth R. Beran, 67, Derby, Kan.; Clark Law, 57, Hill City, Kan.; Tracy D. Higgins, 54, El Dorado, Kan.; and John Kobler, 62, Topeka, Kan.
Grissom commended the U.S. Fish and Wildlife Service, the Kansas Department of Wildlife and Tourism and Assistant U.S. Attorney Matt Treaster for their work on the case.
21 November 2014
Wyoming U.S. Attorney's Office Collects $7,059,989 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
Cheyenne - U.S. Attorney Christopher A. “Kip” Crofts announced today that the District of Wyoming US Attorney’s Office collected $7,059,989 in criminal and civil actions in Fiscal Year 2014. Of this amount, $2,974,012 was collected in criminal actions and $4,085,977 was collected in civil actions.
Additionally, the District of Wyoming worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect $73,596 in cases pursued jointly with these offices.
Attorney General Eric Holder announced on November 19th that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“Every day, the Justice Department’s prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Eric Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And as a result, I can report today that – during Fiscal Year 2014 – the Justice Department collected a total of $24.7 billion in civil and criminal actions.”
“I am very pleased with the efforts of the Wyoming U.S. Attorney’s Office in collecting more than twice the annual cost of operating the office and for providing great value to the American taxpayers,” said U.S. Attorney Crofts.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Windermere CEO Sentenced to 17 Years for Investment FraudRead the Press Release
Orlando, FL – U.S. District Judge Paul G. Byron has sentenced Michael Rivers (57, Windermere) to 17 years in federal prison for conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, money laundering, and aggravated identity theft. Rivers was also ordered to pay restitution to his victims in the amount of $1,160,284. The Court also ordered him to forfeit more than $300,000 in proceeds obtained from the fraud, as well as three luxury vehicles. He pleaded guilty in March 2014.
According to court documents, Michael and Kim Rivers created an international bank software company called Global Business Genesis, LLC (“GBG”). The company was headquartered in Orlando. Michael Rivers was the Chief Executive Officer and Kim Rivers was the Executive Assistant of GBG. During the course of the conspiracy, Michael and Kim Rivers created and provided forged and false documents to potential investors. They also made false statements to investors. For example, on December 11, 2012, Michael Rivers sent an e-mail to Kim Rivers, giving her instructions on how to portray herself as an employee of a law firm. The e-mail detailed how Kim Rivers would pretend to be an administrative assistant at the firm. It further detailed how another co-conspirator would pretend to be an associate at the law firm.
In January 2013, Michael Rivers was in London trying to solicit investors. After receiving some resistance from investors, he suggested they call the law firm to speak with an attorney who could vouch for the authenticity of GBG and its license agreements. Michael Rivers called Kim Rivers, who pretended to work at the law firm. A co-conspirator then pretended to be an associate at the firm and stated that due diligence had been conducted.
In addition to the forged attorney documents, Michael and Kim Rivers told state and federal courts, the government, creditors, and opposing litigants, that Michael Rivers had debilitating cancer and was receiving treatment in Argentina. The couple often claimed that Michael Rivers was medically incapacitated in Argentina. They stated that because of his illness, they were unable to appear in court, at depositions, and at meetings in the United States. Those false representations were made in letters, e-mails, filings in state and federal court, court hearings, and in depositions. The statements were also made by agents representing the couple.
During the execution of the search warrants in this case, law enforcement officers found items including correspondence, templates, letterhead, altered documents, and computer images of signatures and seals, which were used during the course of the offenses. These items included the elements used to create the forged documents, including attorney letters, letters from doctors concerning cancer treatment in Argentina and in Florida, insurance documents concerning cancer treatment, and forged documents from financial institutions and government entities.
On August 14, 2014, Judge Byron sentenced Kim Rivers to six years in federal prison and ordered her to pay restitution to the victims in the amount of $1,160,284.
This case was investigated by the United States Secret Service. It was prosecuted by Assistant United States Attorneys Christopher LaForgia, Daniel Irick, and Nicole Andrejko.
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Courtney Pickett, 20, of South Bend, Indiana was sentenced to 121 months imprisonment with 4 years supervised release after pleading guilty to the felony offense of intentionally distributing a mixture or substance containing cocaine base over 28 grams. According to documents filed in this case, on March 25, 2014, Pickett knowingly and intentionally sold crack to a confidential informant working with law enforcement. This case was the result of an investigation by the Drug Enforcement Agency. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
- Crystal Riggs, 48, of Goshen, Indiana was sentenced to one year probation and ordered to pay restitution of $15,354 at a minimum rate of $100 monthly after pleading guilty to the felony offense of unemployment compensation fraud. According to documents filed in this case, in or around September 2009 through in or around December 2010, in the Northern District of Indiana, Riggs knowingly stole money belonging to the United States in excess of $1,000. In particular, she applied for and received in excess of $6,000 in federal unemployment benefits that she was not entitled to receive. This case was the result of an investigation by the Indiana Department of Workforce Development and the United States Postal Service. This case was prosecuted by Assistant United States Attorney Jesse Barrett.
Week in Review – HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Jonathan Heard, 36, of East Chicago, Indiana pled guilty to the felony offense of knowingly possessing in and affecting commerce a firearm after having been convicted of a felony offense. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for 4/24/2015. This case is being prosecuted by Assistant United States Attorney Tom McGrath.
- Shannon Meegan, 33, of Hammond, Indiana pled guilty to the felony offense of conspiracy to distribute a mixture or substance containing hydrocodone. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Agency. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Tom McGrath.
- Mary Lederleitner, 56, of Munster, Indiana pled guilty to the felony offense of conspiracy to distribute a mixture or substance containing hydrocodone. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Agency. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Tom McGrath.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Eddie Torres, 44, of East Chicago, Indiana was sentenced to 11 years imprisonment with 3 years supervised release after pleading guilty to the felony offenses of conspiracy to participate in racketeering activity, and conspiracy to possess with intent to distribute and distributing 100 kilograms or more of marijuana and 5 kilograms or more of cocaine. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the FBI, and the East Chicago Police Department, with assistance from the Gary Police Department, the Hammond Police Department and the Lake County High Intensity Drug Trafficking Area Program. This case was being prosecuted by Assistant U.S. Attorney David J. Nozick of the Northern District of Indiana and Trial Attorney Bruce R. Hegyi of the Criminal Division’s Capital Case Section.
- Julie A Schroeder, 52, of Valparaiso, Indiana was sentenced to 12 months of probation with 10 months on home detention after pleading guilty to the felony offense of theft from a program receiving federal funds. According to documents filed in this case, Schroeder was the office manager of the food service office of Valparaiso Community schools. Schroeder stole approximately $37,000 from school lunch programs. This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Philip Benson.
- Armando Gomez, 64, of East Chicago, Indiana was sentenced to 5 months imprisonment, 1 year supervised release and to pay $42,979.00 in restitution after pleading guilty to the felony offense of making a false statement under oath on a tax return. According to documents filed in this case, Gomez filed a 2007 federal tax return and understated the total taxable income of by approximately $45,000.00. This case was the result of an investigation by the Internal Revenue Department. This case was prosecuted by Assistant United States Attorney Philip Benson.
- Holly McManus, 34, of Michigan City, Indiana was sentenced to 18 months of probation and to pay $17,368.25 in restitution after pleading guilty to the felony offense of insurance fraud utilizing the mail. According to documents filed in this case, McManus, along with others, participated in staged automobile accidents in order to collect funds and money by submitting false and fraudulent insurance claims. This case was the result of an investigation by the United States Postal Service. This case was prosecuted by Assistant United States Attorney Toi Houston.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Silvestre Castaneda, 30, of Fort Wayne, Indiana pled guilty to the felony offense of conspiracy to distribute and possession with intent to distribute cocaine. This charge was filed as a result of an investigation by the Federal Bureau of Investigation, Fort Wayne Safe Streets Task Force, Indiana State Police, Fort Wayne Police Department, Allen County Police Department, Allen County Drug Task Force and the New Haven Police Department. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Anthony Geller.
- Harold Collins, 50, of Oakwood, Ohio, pled guilty to the felony offense of conspiracy to distribute and possession with intent to distribute heroin. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Administration and the Fort Wayne Police Department. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Anthony Geller.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Washington, D.C. Man Sentenced to 10 Years in Prison for Traveling to Maryland to Engage in Sexual Activity with a MinorRead the Press Release
Communicated With the Victim Through a Social Networking Site
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Gregory King, age 28, of Washington, D.C. today to 10 years in prison, followed by 10 years of supervised release, for traveling across state lines to engage in illicit sexual conduct with a 14 year old female and for using a computer to persuade, induce, entice and coerce the minor to engage in sexually explicit conduct. Judge Messitte also ordered that upon his release from prison, King must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Richard McLaughlin of the Laurel Police Department.
According to King’s plea agreement, on October 9, 2013, he initiated a chat with the victim, a 13 year old girl, on a social networking site. The girl advertised her age on her profile page as 13. During October and November 2013, King and the victim exchanged sexually explicit photographs and engaged in sexually explicit conversations. On October 30, 2013, King chatted with the victim about coming to her house in Maryland from Washington, D.C., telling the victim that he would take a bus to her house. The victim provided King with her address, but King was not able to get to the victim’s house that night. King continued to chat with the victim and on November 21, 2013, shortly after the victim’s 14th birthday, again discussed coming to the victim’s home. King took a bus from Washington, D.C. and met the victim at her home, where he spent the night. According to the facts presented to the Court at today’s sentencing, the victim’s parents were not home at the time. King was arrested on January 19, 2014.
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.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI and Laurel Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.
Warren County, Kentucky, Woman Convicted of Setting Fire to the Horse Cave, Kentucky Dollar General StoreRead the Press Release
– Jurors deliberated just over two hours before reaching a guilty verdict
BOWLING GREEN, Ky. – A Warren County, Kentucky woman was convicted of maliciously damaging and destroying, and attempting to damage and destroy, by means of fire, the Dollar General Store, and the personal property, located in Hart County, Kentucky, by a federal jury in Bowling Green today following a week-long trial, announced David J. Hale, United States Attorney for the Western District of Kentucky. The jury deliberated for a little over two hours before reaching its unanimous verdict. The defendant was remanded to the custody of the United States Marshal Service.
According to evidence presented during the trial that began Monday, Debra Fowler Kessinger, age 57, of Smiths Grove, Kentucky, set a fire on June 27, 2011, that destroyed, the Dollar General Store located at 1015 East Main Street in Horse Cave, Kentucky. Further, according to testimony presented during the trial, Kessinger, who was a manager of the store at the time of the fire, deliberately set the fire in the store’s break-room, to conceal information about inventory missing from the store and to conceal the theft of money from the store. The day of the fire the store was to begin an audit process that would have exposed Kessinger.
Following today’s verdict U.S. Attorney Hale commended the outstanding collaborative work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Western Kentucky Arson Task Force.
Kessinger faces between 5 and up to 20 years in prison for destroying property by means of fire, a $250,000 fine and a 3 year period of supervised release. Kessinger is scheduled for sentencing before Chief District Judge Joseph H. McKinley, Jr. on March 12, 2015, in Bowling Green.
Further, the defendant was charged in a separate two-count superseding indictment this year with bankruptcy fraud. According to the indictment, beginning in April 2008, and continuing through December 2009, Kessinger knowingly devised a scheme to defraud her creditors, the U.S. Trustee, and the Bankruptcy Court, by submitting a fraudulent Chapter 7 Bankruptcy petition, In that case, Fowler is charged with concealing and failing to disclose the purchase and possession of property, and the receipt and transfer of life insurance proceeds and retirement benefits of her late husband to the bank accounts of family members and others for her own benefit.
Kessinger faces forfeiture of property, no more than 10 years in prison for bankruptcy fraud, a fine of $500,000 and a 3 year period of supervised release.
This case was prosecuted by Assistant United States Attorneys Joshua Judd and Marisa Ford and was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Western Kentucky Arson Task Force composed of members from the Bowling Green Fire Department and the Kentucky State Police.
Violent Indianapolis Heroin Dealer Sentenced to Life Without ParoleRead the Press Release
Third defendant in drug gang given lengthy sentence
INDIANAPOLIS – Acting United States Attorney Josh J. Minkler today announced the sentencing of Brandon Lomax, 37, Indianapolis, to life in federal prison without parole. Lomax was the leader of a heavily armed drug trafficking organization that operated in the Haughville neighborhood of Indianapolis. The sentence was imposed by District Court Judge Sarah Evans Barker.
Lomax and two others were convicted in February of twenty criminal counts including conspiring to possess heroin, possession with intent to distribute heroin, distribution of heroin and illegal possession of firearms. Lomax, his cousin Anthony Lomax 39, and Demond Glover, 35, were all found guilty of their involvement in the conspiracy. Anthony Lomax was sentenced to 400 months (over 33 years) and Glover 330 months (over 27 years) earlier this year.
“Violent armed drug dealers have ravaged our communities, and heroin has become their drug of choice,” said Minkler. “Putting those who infect our streets with this terrible drug behind bars is a top priority of this office, and this sentence should send a strong message that the United States Attorney’s Office will end your drug dealing career permanently.”
Lomax’s sentence came after a jury verdict found that the he and the other defendants conspired between 2009 and 2012 to distribute kilogram-quantities of heroin in and around the Haughville area of Indianapolis. The trio trafficked hundreds of pounds of heroin from the Chicago area to Indianapolis. They sold most of their drugs on the near-Westside of Indianapolis. Between them, they represent 13 felony convictions dating back to 1997.
Heroin use and overdose deaths are on the rise in Indianapolis and other major cities in recent years. As prescription drug addiction and abuse spread across the state and country, users switched to heroin as opioid pills became more expensive and the cost of heroin has dropped.
According to Assistant United States Attorneys Michelle Brady and Melanie Conour, who prosecuted the case for the government, Anthony Lomax and Glover will both serve 10 years of supervised release after their sentence.
United States Files Enforcement Action Against Michigan Sandwich Company and Co-Owner to Stop Distribution of Adulterated ProductsRead the Press Release
A civil complaint was filed in federal court in Michigan against Scotty’s Incorporated of Detroit and its co-owner and manager, Sandra Jackson, to prevent the distribution of adulterated sandwiches, the Department of Justice announced today.
According to the complaint, Scotty’s Incorporated, which does business as Bruce Enterprises and Bruce’s Fresh Products, prepares and distributes ready-to-eat (RTE) sandwiches, including RTE tuna sandwiches. The complaint alleges that the company’s sandwiches are manufactured in insanitary conditions, and that the company’s procedures are inadequate to ensure the safety of its products. Moreover, the company has failed to implement a written Hazard Analysis and Critical Control Point (HACCP) plan for handling seafood and minimizing the potential for harmful contamination in the company’s RTE tuna sandwiches. The Justice Department filed the injunction action in the Eastern District of Michigan at the request of the U.S. Food and Drug Administration (FDA).
“Seafood poses well-known risks when it is transported from ship to shore, but these risks can be effectively mitigated if companies handling seafood take proper precautions,” said Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division. “The Department of Justice will take all appropriate measures to protect the safety of the seafood consumers eat.”
According to the complaint, the FDA has performed five inspections of the defendants’ facility since 2006 and documented insanitary practices and/or seafood HACCP violations every time. These inspections revealed that the company’s RTE sandwiches are adulterated within the meaning of the Food, Drug, and Cosmetic Act because they are prepared, packed or held under insanitary conditions in which they may have become contaminated with filth or rendered injurious to health. The complaint alleges, for example, that since 2006, the company was repeatedly told to develop a written HACCP plan recognizing the inherent risks of toxin formation in tuna and enumerating plans to take corrective action when tuna is not properly handled.
Tuna that is not chilled rapidly or stored at sufficiently lower temperatures is at increased risk for the formation of scombrotoxin. The toxin can be adequately controlled when tuna is chilled after death and maintained at a cold temperature throughout storage and distribution. In the event that the tuna is not properly maintained, scombrotoxin readily forms and cannot be removed or destroyed through subsequent washing, freezing or cooking of the tuna. Consumption of fish containing high levels of scombrotoxin may cause scombrotoxin poisoning, the symptoms of which may include burning sensations in the mouth or throat, dizziness, nausea, vomiting, headaches, diarrhea, rashes, hives, a drop in blood pressure, constriction of the air passage, heart palpitations and respiratory distress.
According to the complaint, the FDA’s most recent inspection was conducted between January 14 and February 6. At the inspection, according to the complaint, the FDA found that the defendants failed to have and implement an HACCP plan for food safety hazards reasonably likely to occur. There were also no sanitation control records documenting the safety of, among other things, water used at the facility; the cleanliness of surfaces, utensils and equipment coming into contact with food; maintenance of hand-sanitizing machines and bathrooms; exclusion of pests from the facility; and control of employee health conditions such as the wearing of jewelry, hair nets or beard covers.
The government is represented by Trial Attorney Dan Baeza of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Peter Caplan of the Eastern District of Michigan, with the assistance of Assistant Chief Counsel for Enforcement Christopher Fanelli of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
U.S. Attorney's Office and Partners Report Progress One Year after Heroin SummitRead the Press Release
One year after a summit focused on heroin and opioid addiction, many of the participants came together to provide an update to the community on activity and progress that has been made since the summit.
The Cleveland Clinic and United States Attorney’s Office, together with many partners, hosted “Heroin: A Crisis Facing Our Entire Community.” The summit resulted in the formation of a working group and a community action that that looked at heroin and opioid abuse from the perspectives of the medical, treatment, prevention and law enforcement communities.
Among the developments since the Heroin and Opioid Summit:
- Drop boxes for prescription pills now exist in most communities in Cuyahoga County, resulting in the collection of more than 13,000 pounds of pills.
- House Bill 170 was signed into law, following testimony by some of the participants of the heroin summit. Project DAWN (Deaths Avoided With Naloxone) has nearly 1,000 registrants and documented nearly 100 reversals.
- Cuyahoga County and the Cuyahoga County Medical Examiner’s Office provided money for a variety of regional cooperative law enforcement groups to purchase an initial supply of Naloxone for officer use.
- Cleveland Police, the Cuyahoga County Sheriff and the Cuyahoga County Prosecutor developed investigative protocols so fatal heroin overdoses are now fully investigated and treated as crime scenes.
- Three heroin cases have been prosecuted in federal court under a “death-specification” sentencing enhancement in cases that resulted in death. Sentences have ranged from 12 to 20 years in prison.
- The Cuyahoga County Prosecutor has filed eight heroin-related manslaughter indictments since the summit.
- Three physicians have been indicted in federal court of illegally dispensing tens of thousands of doses of prescription painkillers.
- Members of the working group have participated in nearly 100 community, school or public events in the past year to raise awareness about the dangers posed by heroin and opioids, as well as extensive publicity campaigns undertaken by the ADAMHS Board and Cuyahoga County Prosecutor.
- A second judge will be added to handle Cuyahoga County’s Drug Court docket.
Despite these efforts, heroin overdose remains a leading cause of death in Cuyahoga County, and deaths continue are expected to hover around 200 this year. That figure represents a nearly 400 percent increase from a decade ago. Police and prosecutors report a huge influx in both the availability of heroin and the number of heroin-related crimes.
There are also significant challenges from this crisis that are facing the medical profession. Doctors are grappling with how to effectively treat pain will responsibly prescribing opioids. Treatment professionals struggle with how to provide resources and help to people struggling with addiction, while parents, educators and others search for effective strategies to keep people from trying heroin in the first place.
“The heroin epidemic in Northern Ohio is a law enforcement problem, a treatment problem, a medical problem, a public-health problem and a societal problem,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “Only by working together for comprehensive solutions will we begin to turn the tide. This group has continued to work together to push for substantive changes on everything from the availability of Naloxone to how heroin fatalities are investigated. There is still work to do, and we will continue to do it.”
Cuyahoga County Executive Edward FitzGerald said: “Over the last year, we have worked collaboratively to bring law enforcement officials, public health experts, and other stakeholders from across Northeast Ohio together to implement a comprehensive strategy that will end the epidemic of heroin abuse in our region. I am proud of the work we’ve accomplished so far – especially the cutting-edge practices and procedures established by the Cuyahoga County Medical Examiner’s Office, led by Dr. Tom Gilson. As this critical public health effort moves forward in the weeks and months to come, I am confident that we have laid the groundwork that will help finally reverse the trend of opiate addiction in our region.”
“Solving the heroin epidemic in our community requires collaboration among doctors, treatment professionals, legislators, educators and law enforcement agencies,” says Jason Jerry, M.D., a Cleveland Clinic physician in the Alcohol and Drug Recovery Center. “It’s our role as healthcare professionals to educate our counterparts about the most effective, evidence-based treatment options available for those suffering from addiction, we are moving in the right direction, but still have important work ahead of us.”
The summit and subsequent working group includes representatives from the United States Attorney’s Office, the Cleveland Clinic, the Cuyahoga County Executive, the Ohio Attorney General, MetroHealth Medical Center, University Hospitals, Cuyahoga County Common Pleas Court, the Cleveland Division of Police, the Drug Enforcement Administration, the Federal Bureau of Investigation, the Ohio State Medical Board, the Ohio State Pharmacy Board, Cuyahoga County Board of Health, the Cuyahoga County Medical Examiner, the Cuyahoga County Prosecutor, the ADAMHS Board., the Westshore Enforcement Bureau and others.
U.S. Attorney's Office Collects more than $10.7 Million in Civil, Criminal, Asset Forfeiture Actions in FY 2014Read the Press Release
SHREVEPORT/LAFAYETTE/ALEXANDRIA/LAKE CHARLES/MONROE, La.: United States Attorney Stephanie A. Finley announced today that the U.S. Attorney’s Office for the Western District of Louisiana collected $10,732,350 through civil, criminal, and asset forfeiture actions in Fiscal Year (FY) 2014.
Of the total amount, $6,406,530 was collected in criminal actions and $515,884 was collected in civil actionsThe U.S. Attorney’s Office worked with various other offices and components of the Department of Justice to collect an additional $1,166,498.
Attorney General Eric Holder announced that the Justice Department collected $24.7 billionin civil and criminal actions in the fiscal year ending September 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
Included in the FY 2014 criminal collections, the Western District of Louisiana recovered $948,249.11 from Lake Charles Dr. Lynn Foret. The doctor was sentenced by U.S. District Court Judge Richard Haik on December 17, 2013, to 12 months imprisonment and three years of supervised release in addition to the restitution amount for health care fraud. From 2003 to 2009, Foret injected his patients’ knees with a steroid solution while falsely billing and receiving payments from Medicare, Medicaid and private insurance companies for a more costly drug called Hyalgan.
Also included in the FY 2014 civil collections, are the Western District of Louisiana Financial Litigation Unit’s recovery of $290,969.71 in court-ordered restitution from Kirby Cole, which will be distributed to the victim, the Phillips Foundation. To date, $1,287,323.10 in restitution has been collected. Cole was sentenced in Shreveport by U.S. District Court Judge S. Maurice Hicks Jr. in April of 2010 to pay the total restitution of $2,040,715 for mail fraud associated with his work at the Phillips Foundation, where he was trustee of the charitable organization.
The U.S. Attorneys’ Office is responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department of Justice Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
“The U.S. Attorney’s Office is dedicated to protecting the public and recovering funds for victims of federal crime and for the federal treasury,” stated U.S. Attorney Stephanie A. Finley. “Victims depend on our office to collect restitution. We will continue to make every effort to collect restitution on behalf of victims and hold accountable those who seek to profit from illegal activities.”
U.S. Attorney Booth Goodwin Collects Nearly $8 Million for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
Charleston, WV – United States Attorney Booth Goodwin announced today that his office has collected $7,847,442.99 in fiscal year 2014. Of this amount, $2,887,853 was collected in criminal actions, $2,430,992 was collected in civil actions, and $1,923.369.99 was collected in asset forfeiture.
Additionally, the U.S. Attorney’s Office for the Southern District of West Virginia worked with other U.S. Attorneys’ offices and components of the Department of Justice to collect an additional $605,227 in cases jointly pursued. Of this amount, $1,227 was collected in criminal actions and $604,000 was collected in civil actions.
Attorney General Eric Holder announced on November 19, 2014 that the Justice Department collected $24.7 billionin civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
Goodwin noted, “The nearly $8 million collected represents more than 1.5 times the total operating budget for my office for an entire year. These collections represent the collaborative efforts of my civil and criminal divisions, attorneys and staff, and numerous federal, state and local law enforcement agencies. Working together, we not only keep our communities safer, but we hold those committing crimes financially accountable and disgorge their dishonest gains.”
This past May, the Southern District of West Virginia recovered $4.675 million as part of the settlement with Massachusetts-based Calloway Laboratories, Inc. relating to false billings submitted to West Virginia Medicaid and nationwide to Medicare. The settlement represents the largest-ever recovery in a health care fraud case by a United States Attorney’s Office in West Virginia.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
In addition to the civil and criminal collections, Goodwin’s office working with partner agencies and divisions, collected $1,923,369.99 in asset forfeiture actions in FY 2014. Forfeited assets are used to restore funds to crime victims and for a variety of law enforcement purposes. This makes the total amount collected by Goodwin’s office in fiscal year 2014 to $7,847,442.99.
Two Plead Guilty in Federal Extortion Case Involving Former East Tennessee Law Enforcement OfficersRead the Press Release
KNOXVILLE, Tenn. - On Nov. 21, 2014, Robert E. Cummings, 61, of Knox County, Tenn., and Benito D. Lopez, 62, of Knox County pleaded guilty to attempting to commit extortion under color of official right. Sentencing for Cummings was set for 1:00 p.m., on Mar. 23, 2015. Sentencing for Lopez was set for 9:00 a.m., on Mar. 30, 2015. Each faces a maximum of 20 years in prison, a $250,000 fine, and three years of supervision by the U.S. Probation office upon release from prison.
Under “color of official right,” a public official obtains a payment to which he or she is not entitled, believing that the money is being given to him or her in return for taking, withholding, or influencing official action. Cummings was a former University of Tennessee Police Officer. Lopez was a former TVA Police Officer.
Both Cummings and Lopez were indicted earlier this month by a federal grand jury, along with three other former or current law enforcement officers: Jimmy W. Douglas, 43, of Knox County, a former Deputy Sheriff for Knox County Sheriff’s Office; Samuel T. Hardy, Jr., 42, of Knox County, a former Deputy Sheriff for Knox County Sheriff’s Office; and David L. Joyner, 44, of Sevier County, a detective with the Pigeon Forge Police Department. Another former officer involved in the scheme previously pleaded guilty in U.S. District Court to an information charging him with violations of the Hobbs Act. Douglas, Hardy and Joyner have all entered not guilty pleas and are awaiting trial in U.S. District Court.
The indictment and subsequent guilty pleas by the these individuals are the result of an investigation by the Federal Bureau of Investigation, Tennessee Valley Authority - Office of Inspector General, and Tennessee Bureau of Investigation. Assistant U.S. Attorney Jeffrey Theodore represents the United States.
Two Members of MS-13 Sentenced to Lengthy Prison Terms for Violent OffensesRead the Press Release
Two members of the Mara Salvatrucha 13, or MS-13, street gang were sentenced today for their participation in violent crimes committed on behalf of the gang.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Sally Quillian Yates of the Northern District of Georgia, Special Agent in Charge Brock D. Nicholson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE HSI) in Atlanta and Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office made the announcement.
U.S. District Judge Richard W. Story of the Northern District of Georgia sentenced the following defendants today:
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Emmanual Hidalgo, aka “Scooby,” 25, of Chamblee, Georgia, pleaded guilty to engaging in a RICO conspiracy and use of a firearm in relation to a crime of violence on Aug. 2, 2013, and was sentenced to 25 years in prison to be followed by five years of supervised release; and
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Edwin Menjivar, aka “Vago,” and “Chilly Willy,” 33, of Norcross, Georgia, pleaded guilty to engaging in a RICO conspiracy and committing a violent crime in aid of racketeering on June 7, 2013, and was sentenced to 11 years in prison to be followed by three years of supervised release.
According to information presented in court and admitted to by the defendants, MS-13 is a violent international gang that originated in Central America. By 2005, MS-13 had established a presence in the Atlanta-area, staking out strongholds in Gwinnett and DeKalb Counties, which they defended with violence. Members of MS-13 attacked suspected rival gang members, and robbed civilians and area businesses. The defendants sentenced today admitted involvement in the following crimes:
- Hidalgo, along with other gang members, planned to rob a suspected drug dealer at a hotel in DeKalb County in April 2007. During the attempted robbery, Hidalgo and his fellow MS-13 members killed the suspected drug dealer, who was also armed, in a shootout. Hotel surveillance video showed one of the MS-13 members stopping to pick up the victim’s gun, which he later showed off as a trophy.
- Menjivar was the driver in an October 2007 drive-by shooting. Menjivar and a fellow MS-13 gang member drove to an apartment complex in Gwinnett County where many members of the rival “SUR-13” gang lived. As Menjivar drove, the other MS-13 gang member fired from the car, hitting one man in the neck as he was standing outside his apartment patio. The police later recovered the firearm used in the shooting from underneath Menjivar’s bedroom mattress.
This case is being investigated by ICE HSI and the FBI, with assistance from the Gwinnett County Police Department and DeKalb County Police Department. This case was prosecuted by Trial Attorney Joseph K. Wheatley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Paul R. Jones and Kim S. Dammers of the Northern District of Georgia.
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Two Members of MS-13 Sentenced to PrisonRead the Press Release
ATLANTA - Emmanual Hidalgo, and Edwin Menjivar, have been sentenced for their participation in violent crimes that they committed as members of the street gang known as Mara Salvatrucha 13, or MS-13.
“MS-13 preyed on innocent civilians and suspected rival gang members,” said United States Attorney Sally Quillian Yates. “They spread fear and terror through large swaths of Gwinnett and DeKalb counties. People who choose to join gangs and commit violent crimes will learn firsthand that they will be held accountable for their actions and will spend time in prison.”
“The defendants in this case indiscriminately brought murderous violence against rival gang members and innocent civilians alike,” said Brock D. Nicholson, special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Atlanta. “HSI is proud to continue to partner with the FBI and the U.S. Attorney’s Office to target violent transnational gang members who threaten the safety of our communities.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The sentencing of these violent MS-13 gang members to federal prison will have a meaningful and positive impact on public safety in those areas of metro Atlanta that this gang for so long called their home. This case truly represents the problem posed and what is required to address these transnational gangs that bring their level of organized crime from their countries into ours. The FBI will continue to dedicated extensive investigative resources toward the combatting of these violent groups.”
According to United States Attorney Yates, the charges and other information presented in court: MS-13 is an international gang whose members come primarily from Central American countries. By 2005, MS-13 had established a presence in the Atlanta area, staking out Norcross and Chamblee as their strongholds. Members of MS-13 violently attacked suspected rival gang members. They also committed countless armed robberies of civilians as well as businesses. The defendants were sentenced today for their participation in the following crimes:
- Emmanual Hidalgo, also known as Scooby, along with other gang members, planned to rob a suspected drug dealer at a hotel in DeKalb County in April 2007. When the suspected drug dealer turned out to have his own gun, Hidalgo and his fellow MS-13 members engaged in a shootout with him that spilled outside the hotel room. Surveillance video showed one of the MS-13 members stopping to pick up the suspected drug dealer’s weapon, which he later showed off as a trophy.
- Edwin Menjivar, also known as Vago and Chilly Willy, drove fellow gang member Ernesto Escobar in October 2007 on a mission to shoot suspected rival gang members. They went to an apartment complex in Gwinnett County where many members of the gang SUR-13 lived. As Menjivar drove, Escobar fired shots, hitting one man in the neck as he was standing outside his apartment patio. The police later recovered the firearm that Escobar used underneath Menjivar’s bedroom mattress. Ernesto Escobar was charged in the same indictment; was convicted after a jury trial; and is now serving a life sentence.
The court sentenced the defendants as follows:
- Emmanual Hidalgo, 25, of Chamblee, Ga., has been sentenced to 25 years in prison to be followed by five years of supervised release. Hidalgo was convicted on these charges on August 2, 2013, after he pleaded guilty RICO conspiracy and use of a firearm in relation to a crime of violence.
- Edwin Menjivar, 33, of Norcross, Ga., has been sentenced to eleven years in prison to be followed by three years of supervised release. Menjivar was convicted on these charges on June 7, 2013, after he pleaded guilty to RICO conspiracy and Violent Crime in Aid of Racketeering.
These defendants will be deported upon completion of their prison sentences. There is no parole in the federal system.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Federal Bureau of Investigation, with assistance from the Gwinnett County Police Department and DeKalb County Police Department.
Assistant United States Attorneys Paul R. Jones and Kim S. Dammers and Department of Justice Organized Crime and Gang Section Trial Attorney Joseph K. Wheatley prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
- Two Head to Prison for Distributing Methamphetamine
Two Former California National Guard Members Plead Guilty to Charges of Recruiting FraudRead the Press Release
SACRAMENTO, Calif. — Two former California National Guard members recently pleaded guilty to charges of wire fraud stemming from a fraud scheme involving recruiting bonuses United States Attorney Benjamin B. Wagner announced. Brian Kaps, 40, of Chico, pleaded guilty today to one count of wire fraud. Sarah Nattress, 27, of Paradise, pleaded guilty on October 23, 2014, to one count of wire fraud.
According to court documents, the United States Army contracted with Document and Packaging Broker Inc. (DOCUPAK) to administer the Guard Recruiting Assistance Program (G-RAP). Under G-RAP, members of the California National Guard served as Recruiting Assistants. If a Recruiting Assistant referred a potential Guard member to a recruiting office and that person ultimately enlisted, the Recruiting Assistant was eligible to receive monetary compensation disbursed by DOCUPAK.
Nattress and Kaps served in the California National Guard as recruiting assistants. In separate cases, they pleaded guilty to taking part in a scheme to cause DOCUPAK to issue unearned recruiting compensation by falsely claiming that various enlistees had been referred to recruiting offices by them, when in fact they had not.
These cases are the product of an ongoing investigation by the Army Criminal Investigative Command Major Procurement Fraud Unit, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation. Assistant United States Attorney Matthew G. Morris is prosecuting the cases.
Nattress is scheduled to be sentenced by United States District Judge Troy L. Nunley on January 8, 2015. Kaps is scheduled to be sentenced by United States District Judge Garland E. Burrell Jr. on February 6, 2015. They face a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Six other National Guard members were also indicted in May 2014 in Fresno and Sacramento. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.Tribal Member Sentenced for Smoke Shop BurglaryRead the Press Release
COEUR D'ALENE - Joseph Reno Stensgar, 36, of Plummer, Idaho, was sentenced to 21 months in prison for theft from the Stubby Lake Smoke Shop. U.S. District Judge Edward J. Lodge also ordered Stensgar to serve three years of supervised release and pay $20,348.44 in restitution to the store and the victim. Stensgar was indicted by a federal grand jury in Coeur d'Alene on May 20, 2014.
According to the plea agreement, Stensgar admitted that on January 3, 2014, he entered the Stubby Lake Smoke Shop in order to steal cartons of cigarettes. During the course of the burglary, Stensgar and another person took cigarettes, cash, and a laptop computer from the store, and car keys and 2012 Subaru Forrester from the store clerk. The crime happened on the Coeur d’Alene Reservation.
During the term of supervised release, Stensgar will have to submit to searches of his person, home and automobile, and he will have to refrain from using alcohol.
The case was investigated by Coeur d’Alene Tribal Police and the Federal Bureau of Investigation (FBI).
Topeka Man Sentenced for Robberies in Topeka, ManhattanRead the Press Release
TOPEKA, KAN. – A Topeka man was sentenced Friday to 12 years in federal prison for committing robberies at businesses in Topeka and Manhattan, U.S. Attorney Barry Grissom said.
Christopher James Wilhoite, 26, Topeka, Kan., pleaded guilty to two counts of commercial robbery and one count of unlawful possession of a firearm in furtherance of a robbery. In his plea, Wilhoite admitted that on March 29, 2014, he robbed a clerk at Car Toyz, 5849 S.W. 21st in Topeka. The store sells mobile audio, video and vehicle security systems.
Wilhoite entered the store, browsed for a few minutes, and told the clerk: “I know what I want – the money.” He took money from the register and from the clerk’s wallet before loading some electronic items into a bag. When he noticed a surveillance camera, he forced the clerk to show him the recorder and threw that in the bag, too. Then he fled the store. Investigators later found his fingerprints in the store.
Wilhoite also admitted that on April 16, 2014, he robbed the Dollar General at 2321 Tuttle Creek Boulevard in Manhattan, Kan. He pointed a gun at a clerk and said: “Hey, I need money.” He put the clerk and another employee in a bathroom at gunpoint and told them to count to 200 while he fled the store.
Grissom commended the Topeka Police Department, the Riley County Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.Three Real Estate Developers Convicted in $20 Million Mortgage Fraud SchemeRead the Press Release
A federal jury convicted three Miami real estate developers today for their roles in a $20 million mortgage fraud scheme involving the sale of condominium units in the Miami area.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Nadine Gurley of the Department of Housing and Urban Development’s Office of the Inspector General (HUD-OIG) in Miami and Inspector General Laura S. Wertheimer of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) made the announcement. U.S. District Judge Patricia A. Seitz presided over the trial in the Southern District of Florida.
Stavroula Mendez, 68, Lazaro Mendez, 42, and Marie Mendez, 49, were each convicted of one count of conspiracy to commit bank fraud and wire fraud. Additionally, Stavroula Mendez was convicted of 10 counts of bank fraud and three counts of wire fraud; Lazaro Mendez was convicted of 10 counts of bank fraud, and one count of wire fraud; and Marie Mendez was convicted of three counts of bank fraud and one count of wire fraud.
According to evidence presented at trial, Stavroula Mendez, Lazaro Mendez, and Marie Mendez controlled and managed various condominiums in the Miami area. As part of their fraud scheme, the defendants paid straw buyers to apply for mortgages to purchase units in their projects. The defendants then accepted the mortgage proceeds for the purchase of the units, but continued to control the units after the sales.
The evidence showed that Lazaro Mendez recruited family members and others to be straw buyers of units he controlled, and that he facilitated false loan applications for them. In addition, Lazaro Mendez enlisted mortgage brokers and another individual to recruit straw buyers and assist them in obtaining fraudulent loans. He accepted kickbacks out of loan proceeds for each buyer the brokers referred.
Evidence at trial further demonstrated that after units were sold at a development Stavroula Mendez controlled with her husband, Luis Mendez, Stavroula Mendez funneled money from the loan proceeds to shell companies controlled by others to pay for the straw buyers’ closing cash obligations and mortgage payments. In 2008 and 2009, Stavroula Mendez used various shell companies to funnel more than $2 million of the fraudulent proceeds to off-shore accounts located in Switzerland and Liechtenstein.
The evidence also showed that Marie Mendez assisted in the transfer of rental money received by the conspirators to make mortgage payments, and funneled cash to another individual to make mortgage payments on behalf of straw buyers. She also submitted fraudulent loan applications for three condominium units that were purchased in her name.
Eventually, the conspirators were unable to make mortgage payments, causing many of the condominium units to go into foreclosure and leading to $20 million in losses to the lenders.
Following their convictions, each of the defendants was remanded into custody. Sentencing is scheduled for Feb. 3, 2015. Eleven other defendants associated with the scheme were previously convicted of fraud charges.
The case is being investigated by HUD-OIG and FHFA-OIG. The case is being prosecuted by Senior Trial Attorney Brian Young and Trial Attorneys Gary A. Winters and Kyle Maurer of the Criminal Division’s Fraud Section.