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Thursday 2 October 2014
Foreign Subsidiary of Texas Oil Firm Pleads Guilty to Illegally Exporting Drilling Equipment to SyriaRead the Press Release
John P. Carlin, Assistant Attorney General for National Security, Ronald C. Machen Jr., U.S. Attorney for the District of Columbia, and Eric L. Hirschhorn, U.S. Department of Commerce Under Secretary for Industry and Security announced today that Robbins & Myers Belgium S.A., a wholly-owned subsidiary of Robbins & Myers Inc., pleaded guilty today to four counts of violating the International Emergency Economic Powers Act and the Export Administration Regulations.
The guilty plea stemmed from actions by Robbins & Myers Belgium that, in 2006, caused four illegal exports, reexports and/or transshipments of stators—important components of oil extraction equipment—that had made from steel that had been milled in the United States to a customer operating oil fields in Syria.
As part of its plea agreement Robbins & Myers Belgium agreed to pay a total of $1 million in criminal fines ($250,000 for each violation) and to serve a term of corporate probation. The gross proceeds received by Robbins & Myers Belgium for these four illegal exports was $31,716. As part of its plea agreement, Robbins & Myers Belgium has forfeited the entire $31,716 to the government. Robbins & Myers Belgium has also entered into a civil settlement with the Department of Commerce requiring the company to pay $600,000 in civil penalties.
Robbins & Myers Belgium entered the guilty plea this afternoon and was sentenced this afternoon in accordance with the terms of the plea agreement by the Honorable Judge Beryl A. Howell in U.S. District Court for the District of Columbia.
“This case shows that the United States will vigorously enforce its export laws against companies doing business with Syria, a state-sponsor of terrorism and home to one of the most brutal regimes on earth,” said U.S. Attorney Machen. “The Department of Justice will hit companies that do business with Syria where it hurts most: the bottom line. This company will pay fines, penalties, and forfeitures more than 50 times greater than the proceeds of its sales.”
“The significant civil and criminal penalties in this case show our resolve to pursue and prosecute those who flout our export control laws,” said Under Secretary of Commerce Hirschhorn. “We will continue to work in concert with our partner agencies to ensure that U.S. technology stays out of the wrong hands.”
According to court documents, in or about May 2006 an internal auditor with Robbins & Myers Inc. (the U.S. parent company of Robbins & Myers Belgium which was acquired by National Oilwell Varco in 2013) discovered that the company’s Belgian subsidiary had shipped stators made from U.S.-origin steel to a customer in Syria. The internal auditor informed senior management at Robbins & Myers Inc. of the shipments; management then confirmed that those shipments had occurred and that they were likely in violation of U.S. law which prohibited trade in U.S.-origin goods with Syria. Although the U.S.-based parent directed Robbins & Myers Belgium to stop such shipments, the subsidiary continued to make shipments of stators to Syria between August 2006 and October 2006. Following those illegal shipments, employees of the Belgian subsidiary attempted to hide documents related to those shipments from the government’s investigators.
In announcing the guilty plea and sentencing, U.S. Attorney Machen and Under Secretary Hirschhorn commended Special Agents Richard Jereski and Joseph Bankins, who worked under the direction of Special Agent in Charge Nasir Khan, as well as Attorney Advisor R. Elizabeth Abraham of the Department of Commerce's Bureau of Industry and Security. They also thanked Special Assistant U.S. Attorney John W. Borchert and the Counterespionage Section of the Justice Department's National Security Division for their roles in prosecuting this matter.
Foreign Subsidiary of Texas Oil Firm Pleads Guilty to Illegally Exporting Drilling Equipment to SyriaRead the Press Release
WASHINGTON – Robbins & Myers Belgium, S.A., a wholly-owned subsidiary of Robbins & Myers, Inc., pled guilty today to four counts of violating the International Emergency Economic Powers Act and the Export Administration Regulations.
The plea was announced by John P. Carlin, Assistant Attorney General for National Security, Ronald C. Machen Jr., U.S. Attorney for the District of Columbia, and Eric L. Hirschhorn, U.S. Department of Commerce Under Secretary for Industry and Security.
The guilty plea stemmed from actions by Robbins & Myers Belgium that, in 2006, caused four illegal exports, reexports and/or transshipments of stators—important components of oil extraction equipment—that had been made from steel that had been milled in the United States to a customer operating oil fields in Syria.
As part of its plea agreement Robbins & Myers Belgium agreed to pay a total of $1 million in criminal fines ($250,000 for each violation) and to serve a term of corporate probation. The gross proceeds received by Robbins & Myers Belgium for these four illegal exports was $31,716. As part of its plea agreement, Robbins & Myers Belgium has forfeited the entire $31,716 to the government. Robbins & Myers Belgium has also entered into a civil settlement with the Department of Commerce requiring the company to pay $600,000 in civil penalties.
Robbins & Myers Belgium entered the guilty plea this afternoon and was sentenced this afternoon in accordance with the terms of the plea agreement by the Honorable Judge Beryl A. Howell in U.S. District Court for the District of Columbia.
“This case shows that the United States will vigorously enforce its export laws against companies doing business with Syria, a state-sponsor of terrorism and home to one of the most brutal regimes on earth,” said U.S. Attorney Machen. “The Department of Justice will hit companies that do business with Syria where it hurts most: the bottom line. This company will pay fines, penalties, and forfeitures more than 50 times greater than the proceeds of its sales.”
“The significant civil and criminal penalties in this case show our resolve to pursue and prosecute those who flout our export control laws,” said Under Secretary of Commerce Hirschhorn. “We will continue to work in concert with our partner agencies to ensure that U.S. technology stays out of the wrong hands.”
According to court documents, in or about May 2006 an internal auditor with Robbins & Myers, Inc. (the U.S. parent company of Robbins & Myers Belgium which was acquired by National Oilwell Varco in 2013) discovered that the company’s Belgian subsidiary had shipped stators made from U.S.-origin steel to a customer in Syria. The internal auditor informed senior management at Robbins & Myers, Inc., of the shipments; management then confirmed that those shipments had occurred and that they were likely in violation of U.S. law which prohibited trade in U.S.-origin goods with Syria. Although the U.S.-based parent directed Robbins & Myers Belgium to stop such shipments, the subsidiary continued to make shipments of stators to Syria between August 2006 and October 2006. Following those illegal shipments, employees of the Belgian subsidiary attempted to hide documents related to those shipments from the government’s investigators.
In announcing the guilty plea and sentencing, U.S. Attorney Machen and Under Secretary Hirschhorn commended Special Agents Richard Jereski and Joseph Bankins, who worked under the direction of Special Agent in Charge Nasir Khan, as well as Attorney Advisor R. Elizabeth Abraham of the Department of Commerce's Bureau of Industry and Security. They also thanked Special Assistant U.S. Attorney John W. Borchert and the Counterespionage Section of the Justice Department's National Security Division for their roles in prosecuting this matter.
14-224Florida Correctional Officer Sentenced to Prison for Tax Fraud Using Inmates’ IdentitiesRead the Press Release
Tampa, FL – U.S. District Judge James S. Moody, Jr. has sentenced Jerry St. Fleur (26, Tampa) to four years and three months in federal prison for wire fraud and aggravated identity theft. The Court also ordered him to forfeit $61,704, which is traceable to proceeds of the offense. He pleaded guilty on July 9, 2014.
According to the plea agreement, beginning no later than January 2011, and continuing until May 2014, St. Fleur, in his capacity as a correctional officer at the Zephyrhills Correctional Facility, unlawfully accessed and stole the personal identifying information (PII) of former and current inmates within the Florida Department of Corrections (FDOC). St. Fleur would “screen scrape” (cut and paste) inmates’ PII, without their knowledge or permission, from FDOC databases and then use that information to file false tax returns. As part of this scheme, St. Fleur filed approximately 182 fraudulent income tax returns. The government estimates that the total amount of fraudulent refunds requested from these returns was more than $500,000.
This case was investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation, and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Matthew Jackson.
Felon Who Fled from Crim Scene Sent to Federal Prison on Gun ChargeRead the Press Release
A felon who discarded a gun while fleeing from police was sentenced on October 1, 2014 to over six years in federal prison.
Harris Ceaser III, from St. Louis, Missouri, received the prison term after a June 5, 2014 guilty plea to one count of possession of a firearm as a felon.
In a plea agreement, Ceaser admitted he possessed a loaded 9mm handgun in Cedar Rapids on March 24, 2014. According to a criminal complaint, Ceaser came to the attention of law enforcement on that date while they were responding to a report of a stabbing at the 1800 block of A Avenue. The victim was located on the ground with a knife mark in his chest. While canvassing the area for evidence, a woman reported to law enforcement that an individual—later identified as Ceaser—had run from the scene. An officer located Ceaser nearby. Upon seeing the officers, Ceaser fled on foot. The foot chase was captured on a patrol car video, which showed Ceaser throwing a handgun over a fence during the chase. The handgun was then recovered by law enforcement. The handgun had been reported stolen.
Ceaser had been convicted in federal court in Cedar Rapids in 2008 of the felony offense of possessing a firearm as an unlawful drug user. Ceaser remained on supervised release from this conviction at the time of the March 2014 incident.
Ceaser was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Ceaser was sentenced to 78 months’ imprisonment, which was ordered to run consecutive to a 24-month supervised release revocation sentence that was imposed on April 25, 2014 in the 2008 case. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Ceaser is being held in the United States Marshal’s custody until he can be transported to a federal prison.
Ceaser has not been charged in connection with the stabbing.
The case was prosecuted by Assistant United States Attorney Justin Lightfoot and investigated by the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, and Firearms (ATF), and the Cedar Rapids Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/ cgi-bin/login.pl. The case file number is 14-CR-50. The case file for the criminal complaint is 14-MJ-94. The case file for Ceaser’s 2008 conviction is 07-CR-96.
Federal Court Sentences Bettendorf Owner of Whitehall Funding, Inc. on Wire Fraud ChargesRead the Press Release
DAVENPORT, IA - On October 2, 2014, Thomas Richard Jager, age 66, of Bettendorf, Iowa, was sentenced by United States Chief District Court Judge James E. Gritzner to 97 months imprisonment, after pleading guilty to four counts of wire fraud, announced United States Attorney Nicholas A. Klinefeldt. McDaniel was also ordered to serve five years of supervised release following imprisonment, and pay $400 towards the Crime Victims Fund. Jager was also ordered to pay restitution to victims and forfeit personal property.
Thomas Richard Jager, was the owner and managing employee of Whitehall Funding, Inc., a mortgage servicing company located in Davenport, Iowa. In this capacity, Jager was responsible as sub-servicer to certain Department of Housing and Urban Development (HUD) insured mortgages pools to collect mortgage principal and interest payments and required escrow payments. Additionally, Jager was responsible for providing accurate remittance reports and remittance payments to the investors of certain mortgage backed securities secured by the loans in these pools, for making escrow payments and holding the remaining balances for escrow accounts of the mortgagors making payments, and for forwarding all funds received for the prepayment of any mortgages held in these same pools.
During a time period which included 2008 through 2010, Jager failed to forward monthly remittance payments to investors and provided false reports, failed to distribute lump sum payoffs of mortgages to investors, and then transferred money held in escrow to his personal bank account. Jager admitted to being responsible for over $7 million in total losses. Information at sentencing established that during the time of 2007 through 2010, Jager should have legitimately received approximately $18,000 in fees for servicing the loans in these pools. Instead, during this same time period, Jager transferred funds owed to investors and property owners to his personal bank account of $1,182,650. Evidence showed that he spent funds obtained as part of the fraud on credit card purchases, a hot tub for his home, purchase of vehicles, maid service, a Hilton Head time share, country club memberships, and other personal items, taxes and fees.
This case was investigated by the Federal Bureau of Investigation, the United States Department of Housing and Urban Development, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Fast Train Owner and Three Admissions Representatives Arrested for Theft of Federal Student AidRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Yessyka Santana, Special Agent in Charge, Department of Education, Office of Inspector General (ED-OIG), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Alejandro Amor, 56, of Coral Gables, Jose W. Gonzalez, 53, of Port Orange, Michael Grubbs, 37, of Jacksonville, and Anthony Mincey, 57, of Jacksonville, have been charged in a fifteen count indictment with conspiracy to steal government funds, in violation of Title 18, United States Code, Section 371, and theft of government funds, in violation of Title 18, United States Code, Section 641. If convicted, the defendants face up to five years in prison, three years of supervised release, a $250,000 fine, and restitution, on the conspiracy count, and up to ten years in prison, three years of supervised release, a $250,000 fine, and restitution on each substantive count. The case has been assigned to United States District Judge Joan A. Lenard.
Defendant Amor made his initial appearance before United States Magistrate Judge Chris M. McAliley. Defendant Gonzalez made his initial appearance before United States Magistrate Judge David A. Baker, in Orlando. Defendants Grubbs and Mincey made their initial appearances before United States Magistrate Judge Patricia D. Barksdale, in Jacksonville.
According to the indictment, from approximately August 2008 through May 2012, Alejandro Amor, the owner of a for-profit proprietary college called Fast Train, directed his admissions representatives, including Jose W. Gonzalez, Michael Grubbs, and Anthony Mincey, among others, to defraud the United States Department of Education, by recruiting students who were not eligible for federal student aid and falsifying student aid applications in order to obtain federal Pell Grants and Direct Loans. As a result of these fraudulent recruiting practices, Alejandro Amor, Jose W. Gonzalez, Michael Grubbs, Anthony Mincey, and others, caused Fast Train students to submit approximately 1300 fraudulent student aid applications, which yielded approximately $6.5 million in fraudulently obtained Pell Grant and Direct Loan funds.
Mr. Ferrer commended the investigative efforts of ED-OIG and the FBI. This case is being prosecuted by Assistant U.S. Attorney Amanda Perwin.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Elkton Drug Dealer and Philadelphia Supplier Each Sentenced to 10 Years in PrisonRead the Press Release
Heroin Organization Operated in Cecil County, Maryland, and in Delaware, Pennsylvania and New York
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Michael Roberts, a/k/a “Spook,” age 27, of Elkton, Maryland today to 10 years in prison followed by four years of supervised release for conspiring to distribute and possess with intent to distribute heroin.Yesterday, Judge Blake sentenced co-defendant Jorge Ayala-Pizzaro, age 24, of Philadelphia, Pennsylvania, to 10 years in prison followed by five years of supervised release for the same charge.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge David G. Dongilli, Philadelphia Division of the DEA; Cecil County Sheriff Barry A. Janney, Sr.; Chief Matthew Donnelly of the Elkton Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Cecil County State’s Attorney Ellis Rollins; and Colonel Nathaniel McQueen, Jr. of the Delaware State Police.
According to his plea agreement, since at least December 2012, Roberts worked with Rachine Garnett to distribute the bulk quantities of heroin that Garnett obtained from sources in Philadelphia and New York, including co-defendants Jorge Ayala-Pizarro and Luis Lugo-Santiago. Law enforcement intercepted numerous calls between Roberts and Garnett. Generally, Garnett would contact Roberts to let him know he was ready to resupply Roberts with heroin. In addition to discussing drug transactions, Garnett and Roberts would discuss the location of police officers in the area to help avoid detection by law enforcement.According to Ayala-Pizzaro’s plea agreement, he obtained kilograms of heroin, then took the bulk heroin to an apartment rented by Lugo-Santiago, where he and his co-conspirators cut it and repackaged it for further distribution. The heroin was sold to customers in Maryland and Delaware, including Rachine Garnett. Garnett would contact Lugo-Santiago to obtain heroin or provide cash for prior heroin purchases. Lugo-Santiago arranged a meeting with Ayala-Pizzaro or another associate. Garnett would meet Ayala-Pizzaro and others in Philadelphia where he would obtain a new supply of heroin and/or drop off the cash. Garnett and Ayala-Pizzaro had vehicles with hidden compartments where they could store either heroin or money. Often to exchange drugs, money or both, they would simply switch vehicles when they met. Over the course of a seven month wiretap, investigators identified 59 money deliveries from Garnett totaling $1,668,510, for the purchase of approximately 8.98 kilograms of heroin.
Ayala-Pizzarro also handled the transport of heroin and money to and from customers in Delaware, and was overheard by law enforcement discussing drug transactions and the finances of the organization.
On August 15, 2013, investigators executed a search warrant at Ayala-Pizzaro’s apartment and recovered drug paraphernalia, packaging material and $5,329 in cash. A search of Ayala-Pizzaro’s vehicle recovered over a kilogram of heroin packaged in a number of clear plastic baggies from a hidden compartment.
Roberts and Ayala-Pizzaro admitted that over the course of the conspiracy they were responsible for the distribution of at least 400 grams and 10 kilograms of heroin, respectively.
Seven defendants have pleaded guilty to their participation in the heroin conspiracy. Judge Blake sentenced Rachine Huron Garnett, a/k/a “Sheen,” “Red,” “Ray,” and “Blockhead,” age 38, of Elkton, Maryland, to 10 years in prison and sentenced Abel Nunez-Reyes, age 30, of Philadelphia, and Barry Jenkins, Jr., age 24, of Elkton, each to two years in prison. Orlando Nunez De Leon, age 37, of New York, New York, is scheduled to be sentenced on October 31, 2014, and Luis Lugo-Santiago, a/k/a “Papi,” and “Andres Galvez,” age 39, also of New York, is scheduled to be sentenced on December 5, 2014.
United States Attorney Rod J. Rosenstein praised the DEA, Cecil County Drug Task Force, and Delaware State Police for their work in the investigation. Mr. Rosenstein also recognized the U.S. Attorney’s Offices in the District of Delaware, Southern District of New York and the Eastern District of Pennsylvania, the Office of the Special Narcotics Prosecutor for the City of New York and the New York Police Department for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Kenneth S. Clark and James G. Warwick, who prosecuted this Organized Crime Drug Enforcement Task Force case.Eagle River Counterfeiters SentencedRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that two Eagle River residents were sentenced in federal court in Anchorage for conspiring to manufacture and pass counterfeit money at local businesses in Eagle River.
Matthew Daley, 29, and Christa Speiser, 30, were sentenced on October 1, by United States District Court Judge Timothy M. Burgess. Daley was sentenced to a year in prison and Speiser received probation.
According to Assistant U.S. Attorney Aunnie Steward, Daley and Speiser were manufacturing counterfeit $100 bills that they were passing at local businesses including Tesoro, Walmart, and Carrs, as well as others in the Eagle River area.
Over the course of three days Daley and Speiser passed counterfeit $100 bills at local businesses purchasing small items and receiving genuine currency in return. They were stopped when a Tesoro employee recognized a $100 bill as fake and called APD. Daley and Speiser left the Tesoro but were contacted nearby on a routine traffic stop. The officer conducting the traffic stop heard the call over the radio regarding the attempted passing of counterfeit money at Tesoro and recognized Daley and Speiser as the suspects described in the incident. Daley also had a pending warrant for his arrest on a separate matter. Daley lied to the officer about his identity and tried to escape from the officer’s vehicle when he was taken into custody. Several more counterfeit bills were found in their car and in Speiser’s wallet. A search of the trailer where Daley and Speiser were staying by APD and the U.S. Secret Service established that Daley had set up a system of manufacturing the counterfeit money that he and Speiser had been passing at local businesses.
Ms. Loeffler commends the Anchorage Police Department and the Secret Service for the investigation of this case.Duval County Man Sentenced to Federal Prison for Passing Counterfeit MoneyRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis yesterday sentenced Deryck Dean Barcous (26, Duval County) to one year and four months in federal prison for passing counterfeit Federal Reserve notes. Barcous was indicted on March 27, 2014, and pleaded guilty on July 16, 2014.
According to court documents, in November 2013, Barcous answered an ad on Craigslist advertising computer equipment. After finalizing the price, Barcous met with the victim and paid her with what was later determined to be counterfeit $10 and $20 bills.
This case was investigated by the Jacksonville Sheriff’s Office and the United States Secret Service. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
Delaware Man Convicted of Child Exploitation Involving Social MediaRead the Press Release
PHILADELPHIA – A federal jury, yesterday, returned guilty verdicts, on all three counts, against Christopher Steele, a/k/a/ “Mike Dozor,” 34, of Newark, DE, in a child exploitation case. Steele was indicted on March 6, 2014 for use of an interstate commerce facility to entice a minor to engage in sexual conduct, interstate travel with intent to engage in illicit sexual conduct with a minor, and receipt of child pornography. He faces a mandatory minimum of 10 years in prison with a maximum sentence of life. A sentencing date is not yet scheduled.
Steele found his victim, Minor #1, through a social networking cell phone application. He used that media to entice the victim into having sex. He then traveled from Delaware to Pennsylvania for the purpose of engaging in illicit sexual conduct with that minor. Steele also received a visual depiction showing a minor engaged in sexually explicit conduct and participated in a scheme to sexually exploit minor victims.
“Child sexual exploitation crimes are among HSI’s highest priorities,” said John P. Kelleghan, special agent in charge of HSI Philadelphia. “We will continue to relentlessly pursue predators who sexually abuse children, whether that abuse is physical in nature or if it's accomplished by exploiting their images.”
The case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Montgomery County District Attorney’s Office, and the Limerick Township Police Department. It is being prosecuted by Assistant United States Attorney Michelle Rotella.
The public is encouraged to report suspected child predators and any suspicious activity by calling 1-866-DHS-2-ICE. Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-THE-LOST.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Defendants Sentenced in Tax Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Scarlet Veres, 45, and Steven M. Veres, III, 49, both of Clermont, formerly of Broward County, were sentenced today before U.S. District Judge Robert N. Scola, Jr. for their participation in a scheme to evade paying taxes on income received through their construction company following the 2004 and 2005 hurricanes. Scarlet Veres was sentenced to 18 months in prison, to be followed by three years of supervised release. Steven Veres was sentenced to 24 months in prison, to be followed by three years of supervised release. Additionally, each defendant was ordered to pay $600,000.00 in restitution.
Scarlet and Steven Veres each previously pled guilty to one count of conspiracy to defraud the United States, in violation of Title 18, United States Code, Section 371.
According to court documents, Scarlet Veres and Steven M. Veres III, who was then a licensed general contractor, were the sole shareholders of Superior Contracting, Inc., a Broward County-based construction company. In 2005, Superior Contracting, Inc. received millions of dollars from contracts to make hurricane-related repairs, including a contract to make repairs at a condominium development in Fort Pierce. During 2005, the defendants diverted corporate receipts of Superior Contracting, Inc. for their own use. In order to conceal their diversion of corporate funds, the defendants falsified the profit and loss statement of Superior Contracting, Inc. by characterizing personal expenses, including the purchase of property in Parkland, the construction of their personal residence on the Parkland property, the purchase of a residence in Osceola County, and a $550,000 personal real estate investment as business expenses. The defendants further falsified the profit and loss statement by claiming that a $400,000 personal real estate investment was a repayment of a fictitious loan previously made to Superior Construction, Inc. Pursuant to their plea agreements, the defendants agreed to pay restitution to the Internal Revenue Service in the amount of $600,000.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case was prosecuted by Assistant U.S. Attorney Stephanie Evans.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Danville Real Estate Agent Charged in Bank Fraud and Money Laundering SchemeRead the Press Release
OAKLAND – Anthony Keslinke was charge today by superseding indictment in a scheme involving short sale mortgage fraud, announced U.S. Attorney Melinda Haag, Drug Enforcement Administration Special Agent in Charge Jay Fitzpatrick, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
According to the superseding indictment, Keslinke used straw buyers to purchase real estate throughout Northern California. Keslinke identified properties, including his own properties, that were potential candidates for a “short sale.” A “short sale” is a sale of real estate in which the sale proceeds are less than the balance owed on the mortgage loan pertaining to the property and often occurs when a borrower cannot pay the mortgage loan. In furtherance of the scheme, Keslinke allegedly submitted offers to the financial institutions on behalf of straw buyers. In order to induce a bank to accept a short sale offer, Keslinke would draft fraudulent financial hardship letters and submit them on behalf of the seller of a property. In addition, Keslinke often altered engineering and pest reports associated with the properties in order to give the appearance to the financial institutions that the properties were worth significantly less than true fair market value. Additionally, according to the superseding indictment, Keslinke often altered bank account documents to create the appearance that the straw buyers had sufficient funds to purchase the properties in cash. Once a financial institution accepted a particular property for a short sale, Keslinke used his own funds to purchase the property in the name of the straw buyer. After a short sale was completed on a particular property, Keslinke maintained control of the property and often sold the property for a significant financial gain. Keslinke is charged in the superseding indictment with using this mortgage fraud scheme to orchestrate the short sale of properties in Danville, California; Walnut Creek, California; and Kings Beach, California.
The indictment also alleges that between August of 2013 and February of 2014, Keslinke met with an undercover agent purporting to be a drug dealer on multiple occasions. On five separate occasions, Keslinke accepted a total of $550,000 from the undercover agent. In an attempt to conceal the true source of the funds, Keslinke repeatedly deposited the money received from the undercover agent into business bank accounts under Keslinke's control. Keslinke then attempted to launder the money by wiring it from his business bank accounts to an account controlled by the undercover agent. During the investigation, Keslinke routinely kept 8-10% of the money provided to him from the undercover agent as a fee for his services.
Upon a conviction on any of the bank fraud or wire fraud charges, alleged in counts one through six, Keslinke shall forfeit any property, real or personal, which constitutes or is derived from proceeds traceable to the offense.
Upon a conviction of any of the money laundering charges, alleged in counts seven through twelve, Keslinke shall forfeit $320,000 cash seized from Keslinke’s residence, approximately $1.4 million from bank accounts, 500 American Silver Eagle coin, and a Tiffany diamond solitaire ring, all of which allegedly constitutes or is derived from the proceeds traceable to the offenses.
The maximum statutory penalty for each count of Conspiracy to Commit Bank Fraud and Bank Fraud, in violation of 18 U.S.C. § 1349 and 18 U.S.C. §§ 1344, is 30 years in prison and a $1,000,000 fine. The maximum statutory penalty for each count of Wire Fraud, in violation of 18 U.S.C. §§ 1343, is 20 years in prison and a $250,000 fine. The maximum statutory penalty for each count of Conspiracy to Commit Money Laundering and Money Laundering, in violation of 18 U.S.C. § 1956(h) and 18 U.S.C. § 1956(a)(3)(B), is 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Aaron Wegner is prosecuting the case with the assistance of Vanessa Vargas. The prosecution is the result of an investigation by the Drug Enforcement Administration and Internal Revenue Service. The Contra Costa Sheriff’s Office and Livermore Police Department have also provided assistance during the investigation. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force, a multi-agency task force that coordinates long-term narcotics trafficking investigations.
Please note, an indictment contains only allegations. Therefore, as with all defendants, Anthony Keslinke must be presumed innocent unless and until proven guilty.
(Keslinke superseding indictment )
Colombian Man Sentenced to Three Years in Prison for Burglary SpreeRead the Press Release
ALEXANDRIA, Va. – Roger Mina-Cuero, 29, a Colombian national, was sentenced today to three years in prison, followed by three years of supervised release, for interstate transportation of Stolen Property and Illegal Reentry to the United States by a removed alien. Mina-Cuero’s sentence also included restitution in the amount of $371,760 and forfeiture in the amount of $311,340.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after sentencing by U.S. District Judge James C. Cacheris.
Mina-Cuero pleaded guilty on June 23, 2014. According to court documents, Mina-Cuero was part of aColumbian burglary crew based in Houston, Texas, that traveled as far as Virginia and Maryland to conduct at least 12 residential burglaries in which they stole jewelry, cash and electronic items. The co-conspirators cased neighborhoods to identify residences where no one was home, then broke windows in the rear of the houses to gain entry. Mina-Cuero and his co-conspirators brought stolen jewelry and cash from the burglaries back to Houston for sale and forwarded some of the proceeds of the burglaries to Columbia.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations directorate in cooperation with police departments in Montgomery County and Howard County, Maryland; and Loudon County, Virginia. Assistant U.S. Attorney Kimberly Riley Pedersen and Special Assistant United States Attorney Christopher Van Horne prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-131.
Collin County Photographer Guilty of Sexually Exploiting ChildrenRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 54-year-old McKinney, Texas photographer has pleaded guilty to child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Todd Fleming pleaded guilty to sexual exploitation of children today before U.S. Magistrate Judge K. Nicole Mitchell.According to information presented in court, from 1999 to 2007, Fleming coerced minors to engage in sexually explicit conduct for the purpose of producing child pornography. Fleming was indicted by a federal grand jury on Apr. 17, 2013 and charged with child exploitation violations.
“This criminal case should serve as a wake-up call to all parents to regularly monitor their children’s friends and Internet behavior, and to educate their children of the potential dangers of online predators,” said David M. Marwell, special agent in charge of HSI Dallas. “For years, this school photographer assumed the online identities of many young girls to entice other girls to produce child pornography for him. At the same time, he groomed still other young girls to produce his own child pornography.”
“Thank goodness that Todd Fleming will no longer be able to prey on unsuspecting children,” said U.S. Attorney Bales. “Kudos to the investigative team who successfully brought Fleming to his well-deserved appointment with justice. And I agree with SAC Marwell – the most important takeaway from this case is the need for parental vigilance and communication with their children. For our part, we will continue to have zero tolerance for child pornographers.”
This case is being investigated by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Texas Department of Public Safety – Criminal Investigations Division and prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Fleming faces a minimum of 15 years and up to 30 years in federal prison. A sentencing date has not been set.Cleveland Man Indicted for Violating the Clean Air Act, Illegally Dumping Garbage and Defrauding Company out of $1.2 MillionRead the Press Release
A federal indictment was filed charging Christopher L. Gattarello and another Cleveland man with violating the Clean Air Act by failing to remove asbestos prior to demolishing a former factory in Cleveland, law enforcement officials said.
Gattarello and another conspirator were also charged with defrauding a Louisiana company out of nearly $1.2 million.
At the same time, state charges were filed in Cuyahoga County Common Pleas Court against Gattarello and two men, charging them with illegally dumping garbage in Cleveland.
Indicted in federal court are Gattarello, 50, of Cleveland; Willam S. Jackson, Jr., 44, of Cleveland, and Robert A. Shaw, Sr., 74, of Ypslanti, Michigan.
The indictments were announced by Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Ohio Attorney General Mike DeWine, Cuyahoga County Prosecutor Timothy McGinty, Ohio EPA Director Craig W. Butler and Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
“We will not allow our neighborhoods to be used as garbage dumps,” Dettelbach said. “Mr. Gattarello’s actions show his total disdain for the law and for the people who live near the factory. He will be held accountable for his actions.”
“Thousands of tons of garbage were dumped illegally near a residential neighborhood,” Attorney General DeWine said. “This behavior is inexcusable. Residents have to deal with this significant environmental and health threat, and they deserved to see those accountable brought to justice.”
“Dumping waste in our county is criminal, reprehensible and makes it harder for the people of Cuyahoga County to beautify our region,” said Adrienne Linnick, assistant Cuyahoga County prosecutor. “But dumping roughly 29 million pounds of assorted waste — as was found on the old National Acme site—attracts so many pests and produces so many odors that it can contribute to the demise of a neighborhood. Nobody wants to do business next to trash heaps, let alone live next to one where they might want to jog, bike, walk a dog or take their children for a stroll.”
Butler said: “I commend the hard work put into this case by Ohio EPA’s special investigations staff and our partnering agencies to bring about this indictment. Ohio EPA will not tolerate reckless disregard for the health and welfare of Ohio citizens.”
“IRS-Criminal Investigation is committed to unravelling complex financial schemes and following the money to ensure those who profit from crime are held accountable,” Enstrom said.
Gattarello owned and controlled several municipal garbage-hauling businesses in greater Cleveland, including Reach Out Disposal, All Points Rubbish Disposal and Axelrod Rubbish Recycling. Shaw worked for Gattarello at those companies, while Jackson operated a Cleveland building demolition company.
Gattarello and Jackson were each charged with two counts of violating the Clean Air Act.According to the four-count federal indictment:
In June 2011, Gattarello, on behalf of All Points, leased the former National Acme facility at 170 East 131st Street in Cleveland. The 570,000 square-foot facility was built in 1917 and was used for manufacturing for nearly a century. It is located near many homes and a school. Gattarello represented to the lessor that paper and cardboard waste would be recycled at the facility.
In July 2011, a company estimated removing asbestos from the facility would cost $1.5 million.
Around August 2011, Gattarello directed paper and cardboard waste, as well as municipal garbage, be delivered to the facility for recycling. Over the next several months, more garbage, paper and cardboard were delivered than could be handled, and Gattarello had the waste moved inside. By April 2012, most of the facility was filled with garbage.In May 2012, Gattarello, on behalf of Reach Out, entered into a contract to purchase the facility. Gattarello intended to demolish the facility and sell any metal removed as scrap.
In July 2012, Jackson submitted a notice of demolition with the Cleveland Division of Air Quality stating there was no asbestos in the National Acme facility. About 10 days later, the CDAQ rejected Jackson’s notice because it was incomplete and stated demolition “may not begin” until a proper notice was submitted and approved. About 10 days after that, on July 21, 2012, Jackson began demolition at Gattarello’s direction.
Asbestos fibers were released into the environment during demolition. Debris accumulated outside the facility from demolition and asbestos in the piles were exposed to the wind and elements.
In the state’s case, Christopher Gattarello, Axelrod Recycling, and Reachout Disposal each were indicted on the same five counts — two counts of illegal open dumping, two counts of operating a solid waste landfill without a license, and one count of operating a solid waste transfer facility without a license. The charges stem from alleged solid waste violations at the former National Acme facility and at 965 Wayside Avenue in Cleveland.
Also in the state’s case, Christopher Gattarello’s brother, Anthony Gattarello, 48, of Highland Heights, was indicted on one count of illegal open dumping and one count of operating a solid waste disposal facility without a license. Jackson was indicted on one count of illegal open dumping. The charges relate to alleged violations at the former National Acme facility.
Additionally, Christopher Gattarello was charged with in federal court with one count each of conspiracy to commit wire fraud and money laundering. Shaw faces one count of conspiracy to commit wire fraud.
AIM Business Capital LLC is a financial company based in Louisiana that specializes in “factoring” – a practice in which AIM purchases accounts receivable, such as invoices billed to customers for goods and services. Businesses that factored their receivables with AIM received immediate cash. AIM, like other factoring companies, purchase the receivables at a percentage discount of the invoice. AIM made a profit by collecting the full amount of the invoice from the business’s customers, according to the federal indictment.In 2011 and 2012, Shaw, on behalf of Reach Out and Axelrod, entered into contracts with AIM for the purchase of receivables from Reach Out and Axelrod. Gattarello directed the creation of false and fraudulent invoices for the companies and directed that they be submitted to AIM. In some cases, Gattarello and Shaw directed other employees to create false letters attesting to the validity of the invoices, which Shaw forwarded to AIM. The loss to AIM was nearly $1.2 million, according to the federal indictment.
The federal case is being prosecuted by Assistant United States Attorneys Brad Beeson and James V. Moroney following an investigation by the Federal Bureau of Investigation, the U.S. and Ohio Environmental Protection Agencies, the Ohio Bureau of Criminal Investigation and the Internal Revenue Service.
The state case is being prosecuted by the Ohio Attorney General’s Office in cooperation with the Cuyahoga County Prosecutor’s Office.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilty beyond a reasonable doubt.
Centre County Museum Official Indicted Federally and Arrested on Child Exploitation and Child Pornography ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury in Harrisburg, Pennsylvania returned an indictment yesterday against Christopher G. Lee, age 65, a resident of Boalsburg, Pennsylvania. The indictment charges Lee with alleged use of facilities in interstate commerce, specifically the internet and telephone, to coerce and entice a minor to engage in unlawful sexual activity, transportation of a minor with the intent to engage in sexual activity, receipt of child pornography, and possession of child pornography.
Lee was taken into custody this morning by the FBI and the State College Police Department on the basis of an arrest warrant issued yesterday by United States Magistrate Judge Susan E. Schwab in Harrisburg. He appeared today before Magistrate Judge William I. Arbuckle, III, in Williamsport. After a hearing, Lee was ordered to be detained in federal custody.
According to United States Attorney Peter Smith, the alleged unlawful conduct took place between January and June 2014 in Boalsburg at the premises of the Boal Mansion Museum which conducts activities including educational summer programs, known as “docent” programs, using students recruited from the United States and other countries as volunteer tour guides at the Museum.
Lee is the chief executive officer of the Boal Manison Museum. Alleged child pornography was found in connection with a search by State College Police during the investigation, which is continuing.
If convicted, Lee faces a maximum sentence of up to life imprisonment, a mandatory minimum sentence of 10 years’ imprisonment on the transportation offense, and a 5 year mandatory minimum on the receipt offense, as well as a $1 million fine.
This investigation is being conducted by the Federal Bureau of Investigation, the State College Police Department and the Centre County District Attorney’s Office and is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
Persons with information regarding this case or the continuing investigation should contact Special Agent Clifton Vikara, FBI, at (814) 234-0341 or the State College Police Department at (814) 234-7150.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Canton and Gulfport Awarded Doj Hiring Grants to Help Reduce Violence and Protect SchoolsRead the Press Release
WASHINGTON, DC— This week the U.S. Department of Justice, Office of Community Oriented Policing Services (COPS) announced nearly $124 million in funding awards across the nation. These awards are aimed at creating, and in some cases protecting, local law enforcement positions.
In the Southern District of Mississippi, this year’s grantees are the Canton Police Department which received an award of $127,191, and the Gulfport Police Department which was awarded $494,768.
“The COP grants awarded to Gulfport and Canton demonstrate the Department of Justice’s commitment to the efforts of local law enforcement in the Southern District of Mississippi,” said U. S. Attorney Gregory K. Davis. “This program is specifically designed to advance public safety through the implementation of community policing strategies to reduce crime in our neighborhoods.”
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety.”
The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer and deputy hires for three years.
Grantees for the 2014 hiring program were selected based on their fiscal needs, local crime rates, and community policing plans.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2014 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
California Man Arrested on Drug and Money Laundering ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that James Parish, 30, of Carlsbad, California, was arrested and charged by criminal complaint with possession with intent to distribute marijuana, conspiracy to distribute marijuana and money laundering conspiracy. The charges carry a maximum penalty of 20 years in prison.
Assistant U.S. Attorney Frank T. Pimintel, who is handling the case, stated that according to the complaint, on August 21, 2014, the Drug Enforcement Administration seized a package that a person was attempting to ship at a local shipping company. The package contained $66,705 in United States currency. On that same date, the DEA seized a second package containing $77,000 in United States currency that was shipped to a shipping company in Carlsbad, California. An account belonging to the defendant was billed for each of the transactions.
On September 18, 2014, Parish dropped off two large boxes at the shipping company in Carlsbad, CA to be shipped to the Buffalo area. On September 19, 2014, the boxes were seized by the DEA. According to the complaint, the boxes contained a total of 30 pounds of marijuana.
On September 30, 2014, the defendant traveled from California to Buffalo to collect approximately $600,000 in payments for the marijuana. Parish was arrested at the Buffalo Niagara International Airport. According to the complaint, the defendant was planning to stay at a hotel on Genesee St. in Cheektowaga. The investigation revealed that Parish shipped a box to the hotel in his name. That box contained an AirSoft Gun, a taser, a bullet proof vest, a knife, handcuffs, a flashlight, a tourniquet strap, bandage kit and a GPS tracking device.
A second defendant in this case, Benjamin Golembiewski, 27, of Buffalo, NY, was arrested on September 26, 2014 and charged with conspiracy to distribute marijuana and money laundering.
Parish made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy. He is being held pending a detention hearing on October 3, 2014 at 2:00 p.m. before U.S Magistrate Judge Hugh B. Scott.
The criminal complaint is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of James J. Hunt, Acting Special Agent in Charge, New York Field Division and the Niagara Frontier Transportation Authority Police, under the direction of Chief George Gast.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Buffalo Man Sentenced for Robbery and ExtortionRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Kashika Speed, 42, of Buffalo, NY, who was convicted of robbery and extortion, was sentenced to 16 years in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorneys Joseph M. Tripi and Joel L. Violanti, who handled the case, stated that sometime before February 23, 2005, the defendant and others conspired to commit the robbery of cocaine and U.S. currency from an individual involved in the distribution of cocaine on the Buffalo area. On February 23, 2005, the defendant and others went to the victim’s residence in Buffalo, restrained the victim, brandished a firearm, abducted the victim, and threatened to kill the victim unless the individual provided the defendant and his accomplices with cocaine.
As a result, the victim made a phone call to one of his associates, who placed a bag containing two kilograms of cocaine on the porch of a residence in Buffalo. After the defendant and his accomplices secured the bag containing the kilograms of cocaine, they released the victim.
Speed was arrested along with three others in this case. Charges are pending against Thamud Eldridge, Kevin Allen, and Galen Rose. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge James S. Higgins, New York Field Division.Buffalo Man Pleads Guilty to Possession of Child PornographyRead the Press Release
BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that Jason Zaifert, 33, of Buffalo, NY, pleaded guilty before U.S. District Court Judge Richard J. Arcara to possession of child pornography. The charge carries a maximum penalty of 10 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that on November 21, 2013, Zaifert possessed child pornography on computers, hard drives and thumb drives in his residence in Buffalo. The defendant possessed over 1,000 image and video files. Some of the images included depictions of violence and some of the children were under 12 years old. Zaifert used peer to peer software to download and view the child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations under the direction of Special Agent-In-Charge, James C. Spero.
Sentencing is scheduled for January 22, 2015 at 12:30 p.m. before Judge Arcara.Brownstown Township Man Sentenced for Role in Scheme to File False Tax Returns Using Stolen IdentitiesRead the Press Release
A resident of Brownstown Township, Michigan, was sentenced today for his involvement in a scheme to file fraudulent tax returns with the Internal Revenue Service, United States Attorney Barbara McQuade announced today.
McQuade was joined in the announcement by Jarod Koopman, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation.
Receiving the sentence from U.S. District Judge Gershwin Drain was Shane Bateman, 42. Bateman pleaded guilty before Judge Drain in May 2014. Judge Drain sentenced Bateman to one year and one day in prison and two years of supervised release, and he ordered Bateman to pay restitution to the IRS in the amount of $185,828.
According to court records, from September 2011 through April 2012, Bateman obtained mailing addresses and personally identifiable information of numerous individuals and provided the information to others, who used the information to prepare and file false tax returns with the Internal Revenue Service. The returns requested tax refunds, and the refunds were loaded onto Turbo Tax Visa debit cards. Bateman and others used the cards at ATMs in the Detroit area to collect cash via ATM withdrawals. Bateman’s cash withdrawals totaled $185,828. The entire scheme involved approximately 180 false tax returns, many using stolen identities. The returns requested a total of approximately $1.7 million in refunds.
“Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers,” said Acting Special Agent in Charge Jarod Koopman. “IRS-CI will continue to aggressively investigate refund fraud and identity theft.”
The case was investigated by special agents of the IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Stephen Hiyama.
Bolingbrook Man Pleads Guilty to Illegally Exporting Carbon Fiber and Other Controlled Items to PakistanRead the Press Release
CHICAGO ― A Bolingbrook man pleaded guilty today to violating U.S. export laws, admitting that he shipped carbon fiber and microwave laminates, and attempted to ship a thermal imaging camera, from his company in Schaumburg to Pakistan without obtaining licenses from the U.S. Commerce Department, federal law enforcement officials announced today.
The defendant, BILAL AHMED, 34, was the president, agent, and owner of Trexim Corp., which used the address of a virtual office in Schaumburg. He pleaded guilty to one count of violating the International Emergency Economic Powers Act (IEEPA). Ahmed was arrested in March and remains free on a $100,000 secured bond pending sentencing on Jan. 15, 2015, in U.S District Court.
He faces a maximum penalty of 20 years in prison and a $1 million fine. His plea agreement anticipates an advisory United States Sentencing Guidelines range of 57 to 71 months in prison.
In pleading guilty, Ahmed admitted that in 2009, he shipped carbon fiber ― Tenax-E HTS40 F13 12K 800 tex ― to Pakistan’s Space and Upper Atmosphere Research Commission (SUPARCO), believing that it would be used to make bullet-proof vests. Ahmed knew that designated “dual use” goods required a license from the Commerce Department to be exported and that no goods could be shipped to certain entities, such as SUPARCO, without first receiving a U.S. export license.
Ahmed knew that the carbon fiber was subject to export regulation. Specifically, the material was controlled for nuclear nonproliferation and anti-terrorism reasons and required a license from the Commerce Department’s Bureau of Industry and Security to be exported to Pakistan. Neither Ahmed nor Trexim ever applied for or obtained the necessary license.
Ahmed also admitted that in 2103, he shipped microwave laminate ― RT/duroid 5870 High Frequency Laminates ― to SUPARCO in Pakistan without applying for or obtaining the required export license.
Ahmed was arrested in March as he attempted to ship to Pakistan a FLIR HRC-U thermal imaging camera, which was on a Commerce Department list of controlled export goods for reasons of national security and regional stability.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation, and Edward Holland, Supervisory Special Agent, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, Chicago Field Office. The Justice Department’s National Security Division provided assistance in the case.
The government is being represented by Assistant U.S. Attorney Bethany Biesenthal.
Plea
Austin Man Sentenced to Two Years in Federal Prison for Laser Strike IncidentRead the Press Release
In Austin today, 25–year-old Gabriel Soza Ruedas, Jr., was sentenced to two years in federal prison followed by three years of supervised release for pointing a laser at an aircraft flying overhead announced United States Attorney Robert Pitman and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
“Laser strikes can pose serious risks to flight crews, passengers, and even individuals on the ground. They are a serious public safety hazard and will be treated as such by law enforcement officials,” stated United States Attorney Robert Pitman.
On July 7, 2014, Ruedas pleaded guilty to one count of pointing a laser at an aircraft--a federal violation under the FAA Modernization and Reform Act of 2012.
According to court records, on February 15, 2014, Ruedas admittedly aimed the beam of a laser pointer at a helicopter flying overhead. That aircraft happened to be an Austin Police Department helicopter (Air1) on approach to land at Austin Bergstrom International Airport (ABIA). All of this occurred after Air1 had been cleared by air traffic control to land. Air1 delayed its landing to investigate the source of the laser. Austin Air Traffic Control issued a general warning to all pilots in the area where the laser incident occurred, which was the flight path of arriving aircraft on short final approach to ABIA.
The laser Ruedas used was strong enough to reflect inside the cockpit of Air1 causing the pilot to turn his head and avert his eyes from the laser, distracting him from normal flight operations.
The crew of Air1 communicated to ground units from the Austin Police Department (APD) information about the source of the laser strikes, enabling APD units to identify and apprehend Ruedas. Ruedas was found with the laser pointer in his sweatshirt pocket and arrested. He has since remained in federal custody.
“The sentence handed down today reinforces our message to the public: Shining a hand-held laser at an aircraft is a serious, illegal act that exposes both air crew and the public on the ground to severe risk,” said Special Agent in Charge Christopher Combs of the San Antonio Division of the FBI. “Hand-held lasers are well labeled to inform owners of their potential risk to health and safety. Ignorance or curiosity is no excuse for such reckless action, and we are committed to working with our law enforcement partners to locate and identify individuals who have total disregard for life and safety.”
This case resulted from an investigation conducted by agents with the Federal Bureau of Investigation together with the Austin Police Department and the Texas Attorney General’s Office. Assistant United States Attorney Gregg Sofer prosecuted this case on behalf of the Government.
Armed Drug Dealer Sentenced to 70 Months in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL STANLEY, 25, of New Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 70 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on February 1, 2014, New Haven police officers observed STANLEY walking on Kensington Street in New Haven. At the time, STANLEY was wanted by the State of Connecticut Division of Parole. When the officers approached STANLEY in their marked car, STANLEY reached into his waistband, pulled his hood over his head, and walked in the opposite direction. After police stopped and exited the car, STANLEY ran, reached into his waistband area and threw an object. Officers apprehended STANLEY a short distance away.
A search of the area where STANLEY discarded an object revealed a fully-loaded Glock semi-automatic pistol that had been reported stolen in New Haven. In addition, a search of STANLEY’s person revealed crack cocaine packaged for sale.
Subsequent forensic analysis of the firearm revealed DNA consistent with STANLEY’s DNA.
STANLEY has multiple prior felony convictions. 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.
STANLEY has been detained since his arrest on February 1. On July 15, 2014, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven Police Department. The case was prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
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[email protected]American Commercial Colleges, Inc. and Its President Sentenced on Federal ChargesRead the Press Release
LUBBOCK, Texas — The president of American Commercial Colleges, Inc. (ACC), Doyle Brent Sheets, 58, of Lubbock, Texas, who pleaded guilty, personally and on behalf of ACC, to federal charges, was sentenced this morning, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
U.S. District Judge Sam R. Cummings sentenced Sheets, who pleaded guilty to an Information charging one count of misprision of a felony, to 24 months in federal prison, restitution in the amount of $972,794.70 and a $5,000.00 fine.
Authorized by corporate resolution, Sheets pleaded guilty to one count of theft of government funds and aiding and abetting, on behalf of ACC. Today, Judge Cummings sentenced ACC to 5 years probation, restitution in the amount of $972,794.70 and a $1,200,000.00 fine.
According to Sheets’ plea agreement with the government, ACC stole government funds by converting Federal Student Aid (FSA) program funds, and thus caused a loss to the government of approximately $972,794. Sheets admitted that he knew about the theft but did not report it, and he agreed that he would be personally, individually, jointly and severally liable for the total loss amount.
According to ACC’s plea agreement with the government, ACC is excluded, directly and indirectly from participating in any FSA programs. This voluntary exclusion is also a voluntary debarment, and ACC will not contest any actions taken to execute the debarment. ACC agrees that it will not have any ownership or interest in, or serve as an officer, director or any legal entity acting as a post-secondary educational institution participating in any FSA program.
Two others associated with ACC have also pleaded guilty to federal charges. Michael James Otto, 61, of Lubbock, who served as the Chief Operating Officer and Campus Director for ACC’s Lubbock campus, pleaded guilty in May 2014 to one count of misprision of a felony. He was sentenced last week to 3 years probation, restitution in the amount of $66,606.48 and a $5,000.00 fine. Bruce Alan Reed, 64, of San Angelo, Texas, who served as the Campus Director for ACC’s San Angelo campus, pleaded guilty to the same offense and was also sentenced last week to 3 years probation, restitution in the amount of $66,606.48 and a $5,000.00 fine.
ACC is a proprietary institution with corporate office in Lubbock. At one time, ACC operated five campuses in Texas — Lubbock, Abilene, Odessa, San Angelo and Wichita Falls — and one in Shreveport, Louisiana. ACC admitted that it knowingly converted FSA program funds from its students solely for its benefit to represent falsely to the U.S. Department of Education that it was in compliance with the requirement that a proprietary institution may not derive more than 90% of its revenue from the FSA program to remain eligible to participate in the FSA program. The remaining 10% of revenue must come from other sources. This is known as the 90/10 Rule, and if an institution did not satisfy it, it would lose its eligibility to participate in the FSA programs.
In 2007, 2008 and 2009, ACC failed to meet the requirements of the 90/10 Rule, however, as early as 2003, ACC had devised a scheme to represent falsely to the Department of Education that it had met the requirements. From 2007-2009, ACC had students obtain private loans from a private bank in San Angelo, Texas, with whom ACC had made arrangements, of approximately $953,897. ACC recorded the loan funds received from the private bank as “good cash,” thus falsely representing to the Department of Education that ACC complied with the 90/10 Rule. By obtaining the loans from the private bank and delaying the students’ FSA program funds, ACC lowered their total FSA program funds revenue for the 90/10 Rule. ACC repaid and intended to repay those loans with approximately $972,794 of FSA program funds to give the appearance of complying with the 90/10 Rule. The private short-term loans were obtained entirely to benefit ACC so that it could falsely represent its compliance. To further the scheme, ACC employees advised students that the school would close if they did not satisfy the 90/10 Rule, and this would jeopardize the students’ education at ACC.
The investigation was conducted by the United States Department of Education, Office of Inspector General. Assistant U.S. Attorney Paulina Jacobo prosecuted.
Alabama Woman, Brittany Bauer, Pleads Guilty to Possession and Transportation of Stolen FirearmsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BRITTANY BAUER, age 23, of Huntsville, Alabama, pleaded guilty today to conspiracy to possess and transport stolen firearms in interstate commerce and transportation of stolen firearms in interstate commerce. A five-count superseding indictment was returned on October 3, 2014, charging BAUER and co-defendants BRITTEN PARSONS and ALEX BRASINGTON with conspiracy, possession and transportation of stolen firearms in interstate commerce.
According to court documents, in January and February 2013, BAUER, PARSON and BRASINGTON, transported nine stolen firearms in interstate commerce, from Alabama to Louisiana. The investigation revealed that the firearms had been stolen during residence burglaries in Huntsville, Alabama. On February 14, 2013, agents conducted a search of BAUER’s New Orleans apartment and found five stolen firearms and approximately 1700 rounds of ammunition. Court documents reflect that agents also recovered four stolen firearms and ammunition that BAUER, PARSONS and BRASINGTON sold to individuals in New Orleans.U.S. District Judge Jane Triche Milazzo set sentencing for January 8, 2015.
U.S. Attorney Polite stated, “Today’s guilty plea underscores our Office’s continued commitment to prosecuting those who illegally transport stolen firearms into our District.”
U.S. Attorney Polite praised the work of the ATF New Orleans Division Office, New Orleans Police Department, Pearl River (LA) Police Department, Pearl River County (MS) Sheriff’s Office, and Huntsville Police Department in investigating this matter. Assistant United States Attorney Nolan D. Paige is in charge of the prosecution.
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Alabama Tax Return Preparer Sentenced to Jail for Preparing False Tax Returns for ClientsRead the Press Release
An Alabama tax return preparer was sentenced to serve 36 months in prison for aiding in the preparation of false tax returns, the Justice Department and Internal Revenue Service (IRS) announced today.
Russell Burroughs was also ordered to pay restitution in the amount of $211,960.
According to court documents, during the 2008 through 2010 tax seasons, Burroughs owned and operated Computer Services, a tax return preparation business, located in Montgomery, Alabama. Burroughs admitted that he deliberately falsified information on client tax returns in order to illegally generate higher tax refunds. He intentionally included false items such as false business income and losses, false Schedule A deductions, false real estate rental losses, false education credits and false energy credits in order to inflate his client’s refunds. At his sentencing hearing, the court found that the tax loss associated with the false returns Burroughs filed exceeded $2.9 million.
This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Katherine Reinhart, Charles M. Edgar Jr. and Michael Boteler of the Justice Department’s Tax Division are prosecuting the case.
21 Year Fugitive Sentenced on 1992 Tax Fraud ChargesRead the Press Release
SAN FRANCISCO – Francisco R. Legaspi was sentenced today to 21 months for aiding and assisting in the preparation and presentation of false tax returns and for failing to appear for his sentencing on the tax charges originally scheduled to take place on Jan. 28, 1993, U.S. Attorney Melinda Haag and IRS-CI Special Agent in Charge José M. Martinez, announced.
According to the plea agreement, Legaspi was indicted on August 19, 1992, on three counts of aiding and assisting in the preparation and presentation of false tax returns. He was released from custody with the condition that he appear in court for all hearings. He pleaded guilty on November 5, 1992, to one count of preparing a false tax return. Legaspi’s attorney told him that his sentencing was set for January 28, 1993. On January 27, 1993, IRS employees went to Legaspi’s business to collect unpaid withholding payroll taxes. During the visit an IRS employee and Legaspi discussed the fact that he was scheduled to appear in court the next day for his criminal case. The next day, January 28, 1993, Legapsi intentionally did not appear for sentencing and fled to Mexico and later to Canada to avoid prison time for his tax crime.
Legaspi, 61, formerly of Daly City, was located in Canada in 2012, after the State Department Bureau of Diplomatic Security researched social media websites and found Legaspi’s Facebook page. The Royal Canadian Mounted Police used the information to apprehend Legaspi. Thereafter, he was extradited from Canada to the United States with the assistance of the U.S. Justice Department’s Office of International Affairs and the United States Marshals Service. Legaspi made his initial appearance in federal court in San Francisco On July 1, 2014.
The sentence was handed down by the Honorable William H. Orrick, United States District Court Judge, in San Francisco. Judge Orrick also sentenced Legaspi to a 1-year period of supervised release.
Assistant U.S. Attorney Thomas Moore is prosecuting the case with the assistance of Paralegal Specialist Edward Solis. The prosecution is the result of an investigation by the IRS, Criminal Investigation with assistance from the State Department Bureau of Diplomatic Security, the Royal Canadian Mounted Police, the United States Marshals Service, and United States Department of Justice, Office of International Affairs.
Wednesday 1 October 2014
Winchester Man Sentenced for Distributing Heroin That Lead to Two DeathsRead the Press Release
HARRISONBURG, VIRGINIA – A Winchester, Va., man, who previously admitted to distributing the heroin that caused the overdose deaths of his father and his father’s girlfriend in June 2013, was sentenced this morning in the United States District Court for the Western District of Virginia in Winchester.
Following an investigation by members of the Northwest Virginia Regional Drug Task Force, and the Drug Enforcement Administration, Thomas Allen Breeden, 27, pled guilty to one count of distributing heroin. Today in District court, Breeden was sentenced to 14 years in federal prison and five years of supervised release thereafter.
“This case is another tragic example of the rising tide of heroin abuse we are experiencing in this district and around the country,” United States Attorney Timothy J. Heaphy said today. “Law enforcement agencies have combined resources to more effectively target and prosecute the distribution of this dangerous drug. But enforcement alone won’t be enough to reverse this dangerous trend. As we bring these cases, we must also educate the community about the dangers of heroin and provide viable treatment solutions to those struggling with addiction. A comprehensive approach to the problem is essential to impact change and reverse the trend of destruction we have seen.”
Breeden previously admitted to driving to Baltimore, Md., on June 10, 2013 and purchasing 1 gram of heroin for $125. He took that heroin to the Winchester Budget Motel where he met his father and his father’s girlfriend. All three used the heroin purchased by Breeden. After leaving the motel room for a short period of time, Breeden returned to find both his father and the girlfriend unconscious. Breeden attempted to revive both parties by splashing cold water on their faces and wrapping cold, wet towels around their necks. With no success, Breeden called 911 at 10:06 p.m. First responders arrived and declared both parties dead at 10:17 p.m. It was later determined that both parties died from “adverse effects of heroin.”
The investigation of this case was conducted by the Northwest Virginia Regional Drug Task Force, which includes the Virginia State Police, and the Drug Enforcement Administration. The Task Force includes law enforcement from the counties of Frederick, Clarke, Shenandoah, Warren and Page as well as the cities and towns of Winchester, Front Royal and Strasburg. Assistant United States Attorney Donald Wolthuis prosecuted the case for the United States.
Wilkinsburg Man Sentenced to Prison for Stolen Credit Card SchemeRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to six months imprisonment to be followed by six months home detention and three years supervised release on his conviction of conspiracy, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Richard Gerald Davenport, Jr., 26, of Wilkinsburg, Pa.
According to the information presented to the court, the court was advised that Davenport conspired with another individual to steal credit card numbers, which he and others used to buy gift cards and merchandise at Rite-Aid stores and others.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Secret Service for the investigation leading to the successful prosecution of Richard Gerald Davenport. Davenport was taken immediately into custody by the United States Marshal’s to begin serving his sentence.
U.S. Attorney Announces Successful Training for Law Enforcement on Human TraffickingRead the Press Release
– Collaborative Efforts To Aggressively Investigate And Prosecute The Illegal Trafficking of Persons into Forced Labor
LOUISVILLE, Ky. – David J. Hale, United States Attorney for the Western District of Kentucky announced the successful completion of a law enforcement training session aimed at fostering continued collaborative investigations and prosecutions of those who illegally traffic persons through forced labor.
During the training session, members of Louisville Metro Police heard from the FBI, Homeland Security Investigations, Assistant United States Attorneys, and victim resource coordinators on trends in human trafficking, strategies for multi-agency investigations, common misconceptions of human trafficking and special considerations for child victims.
“This partnership and commitment to training is taking the fight against human trafficking to a new level,” stated David J. Hale, United States Attorney for the Western District of Kentucky. “The victims of forced labor often go unseen and are unable to seek help. For this reason, it will take a continued, collaborative effort to identity and successfully prosecute these crimes,” concluded U.S. Attorney Hale.
“Human Trafficking is a crime that escapes the public conscience due to the nature of how it is perpetrated. Victims of Human Trafficking are the most vulnerable of victims. Addressing this crime takes dedication and expertise on the part of FBI Agents and the courage of witnesses and victims to make it known,” said FBI Special Agent in Charge Howard S. Marshall
“Human trafficking is a growing problem in our communities and the Louisville Metro Police Department welcomes the opportunity to train and work with our law enforcement partners to identify and rescue victims of this terrible crime and pursue justice for them,” stated Louisville Metro Police Chief Steve Conrad.
According to the Trafficking Victims Protection Act (TVPA), human trafficking includes the recruitment, harboring, transportation, provision, or obtaining of a person for labor or other services, through the use of force, fraud, or coercion, for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery. It includes sex trafficking, in which a commercial sex act is induced by force, fraud, or coercion, or in which the victim is under 18 years of age.
Public outreach efforts in the United States over the last decade have significantly increased the level of awareness of human trafficking in its various forms. While sex trafficking is currently the most recognized form of human trafficking, labor trafficking is found in almost every industry including: agricultural, construction, domestic servitude, escort services, factories, hotels, restaurants, prostitution and strip clubs.
The U.S. Attorney’s Office for the Western District of Kentucky is currently prosecuting two alleged human trafficking cases: one in Owensboro (U.S. v Jathar Williams) and another in Louisville (U.S. v Christopher).
For more information on human trafficking see the Department of Justice Civil Right Division at http://www.justice.gov/crt/about/crm/htpu.php.
Two Serra Nissan Managers and Three Salesmen Charged in Loan Fraud ConspiracyRead the Press Release
BIRMINGHAM -- A third sales manager, a finance manager, and three salesmen who work, or previously worked at Serra Nissan face federal charges in connection with a conspiracy at the Birmingham car dealership to fraudulently boost loan approvals and car sales, announced U.S. Attorney Joyce White Vance, IRS Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot, and FBI Special Agent in Charge Richard D. Schwein Jr.
A federal grand jury last week indicted D. SCOTT BURTON, 36, of Odenville, MICHAEL J. WILKINSON, 56, of Moody, DWIGHT A. PERRY, 44, of Birmingham, TERRY W. HENDERSON, JR., 39, of Pleasant Grove, and ROLAND W. RILEY, 28, of Birmingham, on conspiracy, bank fraud, wire fraud, and aggravated identity theft charges. A federal judge unsealed the indictment after the defendants were arrested today and appeared in court.
"As managers and salesmen in a car dealership, these defendants falsified customer information used to make loans, defrauding the banks who trusted the dealership to present truthful information during the vehicle financing process, and harming customers by fraudulently inflating the value of the vehicles they purchased," she said. "This type of fraud is the auto-industry equivalent of the mortgage fraud that contributed to the financial meltdown, and could threaten the security of our financial markets," Vance said.
"Today's arrest clearly illustrates that individuals who engage in these types of illegal activities will be held accountable for their actions," Hyman-Pillot said. "These defendants clearly took advantage of the people in their community, as well as financial institutions. They manipulated the system and falsified documents with the intention of increasing profits at the expense of others."
“This case is significant to the FBI not merely because of the loss amounts, but also because of the many victims left in the wake of this scheme who had trusted the defendants with handling their vehicle financing,” Schwein said
The 11-count indictment charges the defendants with conspiring with others at the dealership, between August 2010 and October 2013, to defraud financial institutions, Nissan North America and Serra Nissan customers by fraudulently increasing vehicle sales in order to boost personal profits.
The indictment also charges Wilkinson, Burton, Perry and Riley with bank fraud for fraudulent loan information submitted to financial institutions in October 2012. Defendants Wilkinson, Perry and Henderson also are charged with wire fraud for fraudulent information submitted to automotive financing companies such as Nissan Motor Acceptance Corporation and Santander Consumer USA.
The final count of the indictment charges Perry and Henderson with aggravated identity theft for the unlawful use of a customer's Alabama-issued personal identification card during the commission of the bank and wire fraud, and the conspiracy to commit those crimes.
The indictment of these five defendants follows federal charges earlier this year against two other sales managers at Serra Nissan, Abdul Islam Mughal and Gerald R. Shepard. Mughal, 48, of Trussville, pleaded guilty in July to conspiring with others, including Serra Nissan salesmen, general managers, sales managers and finance managers, to sell more cars by falsifying loan documents in order to defraud customers, Nissan North America and financial institutions. Mughal also pleaded guilty to one count of bank fraud for submitting falsified loan documents to financial institutions between January 2012 and October 2013. Mughal is scheduled for sentencing May 5, 2015.
According to the indictment against the five defendants, they and other members of the conspiracy participated in various means to carry out their fraud and obtain auto loans that, otherwise, would not have been approved. Those means included the following:
• Creating or altering documents to submit to financial institutions to show inflated income for prospective buyers.
• Directing finance managers and salesmen to submit fraudulent documents to financial institutions to misrepresent proof of a customer's residency.
• Listing accessories not actually included on a vehicle so a financial institution would increase its loan amount. The defendants and others had a financial incentive to increase a loan amount in order to increase commissions paid to certain employees.
• Presenting straw buyers, who could qualify for a loan, to financial institutions when the actual buyer could not qualify.The defendants and others also defrauded customers and financial institutions by quoting a customer an inflated monthly vehicle loan payment so that a finance manager could add a warranty and gap insurance without the customer realizing it, according to the indictment.
The maximum penalty for the conspiracy count is five years in prison and a $250,000 fine. The maximum penalty for bank fraud is 30 years in prison and a $1 million fine. The maximum penalty for wire fraud is 20 years in prison and a $250,000 fine. The minimum penalty for aggravated identity theft is 2 years in prison.
The IRS and the FBI investigated the case, which Assistant U.S. Attorney Amanda S. Wick is prosecuting.
The public is reminded that an indictment contains only charges. Defendants are presumed innocent unless and until proven guilty.
Two More Ironworkers Plead GuiltyRead the Press Release
PHILADELPHIA- Two members of the Ironworkers Local 401 pleaded guilty today to their roles in incidents that caused destruction to construction sites. Daniel Hennigar, 54, of Philadelphia, pleaded guilty to maliciously damaging property by means of fire. James Zinn, 28, of Philadelphia, pleaded guilty to conspiracy to commit extortion which interferes with interstate commerce. U.S. District Court Judge Michael Baylson scheduled a sentencing hearing for Hennigar for January 28, 2015 and January 21, 2015, for Zinn.
On December 20, 2012, Hennigar drove two other ironworkers, James Walsh and William Gillin, to the Quaker Meetinghouse under construction. Walsh and Gillin used an acetylene torch and gasoline to cause significant damage to the construction site in retaliation for the contractor’s failure to hire union ironworkers.
Zinn admitted to his role in a series of incidents during which members of the union damaged non-union construction sites in an attempt to force non-union contractors to hire union ironworkers. Those incidents included $25,000 in damage to the Wallingford Elementary School construction site and $25,000 in damage at a Merion East Golf Course in Ardmore, PA.
Hennigar faces a five year mandatory minimum term of imprisonment. Each defendant faces a statutory maximum sentence of 20 years in prison, three years of supervised release, a $250,000 fine, a $100 special assessment, and possible restitution.
The case was investigated jointly by the Federal Bureau of Investigation and Department of Labor Office of Inspector General, with assistance provided by the Philadelphia Police Department Corruption Task Force, East Whiteland Township Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Employee Benefit Security Administration. It is being prosecuted by Assistant United States Attorney Robert Livermore with legal assistance provided by Gerald Toner, Acting Deputy Chief for Labor-Management Racketeering, Organized Crime and Gang Section at the Department of Justice.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Two Mobridge Men Charged with Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Brendan V. Johnson announced that two Mobridge, South Dakota, men have been indicted by a federal grand jury for Conspiracy to Distribute and Possess with Intent to Distribute a Controlled Substance, and Possession with Intent to Distribute a Controlled Substance.
Aaron Sackreiter, age 34, and Stanley Schily, age 59, were indicted on September 16, 2014. They appeared before U.S. Magistrate Judge William D. Gerdes on September 24, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is a mandatory minimum sentence of 5 years and a maximum of 40 years in custody and/or a $2,000,000 fine, at least 4 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between December 1, 2013, and July 1, 2014, Sackreiter and Schily knowingly and intentionally combined, conspired, confederated and agreed to distribute, and possessed with intent to distribute, a mixture and substance containing 50 grams or more of a detectable amount of methamphetamine, a Schedule II controlled substance.
The charges are merely an accusation and Sackreiter and Schily are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Sackreiter and Schily were released on bond. Trial has been set for November 4, 2014.
Two Men Charged with Fraud for Looting Hedge FundsRead the Press Release
LAS VEGAS, Nev. – Two men have been charged with conspiracy and fraud for engaging in a scheme to misappropriate $34 million from two Florida-based hedge funds during 2008 to 2010, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Robert Buckhannon, 53, of Las Vegas, and Terry Rawstern, 66, of Aberdeen, S.D., are charged in a criminal indictment with one count of conspiracy to commit wire fraud and one count of wire fraud. Buckhannon, who was arrested by FBI agents yesterday in Henderson, Nev., pleaded not guilty this afternoon at an arraignment before U.S. Magistrate Judge George Foley, and was released on a personal recognizance bond pending trial. Rawstern’s arraignment is scheduled for tomorrow, Oct. 2 at 3:00 p.m. If convicted, the defendants face up to 30 years in prison on the conspiracy charge, up to 20 years in prison on the wire fraud charge, and fines of up to $1 million on each count.
“We have been working with our federal, state and local partners to investigate and prosecute persons who commit significant financial crimes,” said U.S. Attorney Bogden. “Often these cases take considerable time and resources to investigate and litigate, but the American people deserve to know that we are working diligently to catch the perpetrators.”
According to the indictment, from April 2008 through April 2010, Buckhannon and Rawstern and co-conspirators were managing members of two Bradenton, Florida-based hedge funds, Arcanum Equity Fund, LLC and Vestium Equity Fund, LLC. The defendants allegedly engaged in a fraudulent scheme to misappropriate $34 million they raised from investors by misrepresenting how they would use the investors’ funds and misrepresenting that there were safeguards over the investors’ money, such as an independent trustee and independent fund administrator. The defendants then looted and bankrupted the hedge funds by taking payments on false and fictitious profits and taking improper and undisclosed loans. The indictment states that as a result of the defendants’ conduct, investors lost approximately $13.1 million. In April 2010, the hedge funds voluntarily filed for Chapter 7 bankruptcy and are now under the control of court-appointed trustees.
The case is being investigated by the FBI, and prosecuted by Assistant U.S. Attorney Kathryn C. Newman.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.com.
Two Defendants Plead Guilty in Conspiracy to Defraud XeroxRead the Press Release
Rochester, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Anthony Fretto and Daniel Streff, both of Webster, NY, who are named defendants in the federal indictment charging Clarkson Auto Electric, Inc. and nine individuals in a scheme to defraud the Xerox Corporation, pleaded guilty before U.S District Judge Frank p. Geraci to mail fraud and money laundering conspiracy. The charges carry a maximum penalty of 20 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorneys Bradley E. Tyler and Marisa J. Miller, who are handling the case, stated that Fretto is a principal owner of Clarkson Auto Electric, Inc. and Streff is a former Xerox forklift mechanic. The defendants conspired with others to submit false invoices to the Xerox Corporation requesting payment for new forklift parts that had not been delivered to Xerox, and for forklift part repairs that had not been done. Fretto then conspired with others to launder the illegally obtained proceeds received from Xerox.
Four of the nine defendant charged in the case have been convicted. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Sentencing for both defendants is scheduled for January 6, 2015, at 3:00 p.m. before Judge Geraci.
The pleas are the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office, and the U.S. Postal Inspection Service, under the direction of Special Agent in Charge Shelly Binkowski.Trans Energy Convicted of Clean Water Act ViolationsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Trans Energy, Inc. entered guilty pleas to three violations of the Clean Water Act in connection with its natural gas drilling activity in Northern West Virginia, according to United States Attorney William J. Ihlenfeld, II.
Trans Energy pled guilty this afternoon to three counts of “Negligent Discharge of Pollutants without a Permit,” admitting that it dumped pollutants into waterways found in Marshall County, West Virginia. The company agreed that it discharged materials such as rock, sand, soil and stone into streams at Wolf Run, the North Fork of Grave Creek, and the Left Fork of Maggoty Run, all for the purpose of creating impoundments. The water from the impoundments was subsequently used by Trans Energy for Marcellus Shale drilling activity. Trans Energy admitted that it failed to properly train and supervise its employees and that it relied upon the unsubstantiated representations of a nearby property owner when determining whether environmental laws were being followed.
“Altering wetlands can significantly impact water quality and wildlife,” said David G. McLeod, Jr., Special Agent in Charge of EPA’s criminal enforcement program in West Virginia. “By holding violators accountable, EPA is protecting valuable wetlands as well as the communities around them. This case is a direct result of the strong working relationship between our federal and state enforcement partners.”
The plea agreement calls for Trans Energy to pay a fine of $200,000 for each conviction, for a total fine of $600,000. It also requires that Trans Energy be placed onto probation for two years and be under the supervision of the Court during that time period. The parties agreed that separate violations committed by Trans Energy and occurring in connection with two other impoundments constructed in Marshall County would be addressed by civil penalties.
John G. Corp, President of Trans Energy, signed the plea agreement on behalf of the company, which was formed and organized pursuant to the laws of the State of Nevada.
The Clean Water Act, also known as the Federal Water Pollution Control Act, was enacted by Congress to restore and maintain the integrity of the Nation’s waters. It prohibits the discharge of any pollutant from a point source into the waters of the United States without a permit. Discharges of dredged or fill material into waters of the United States are prohibited unless authorized by a permit issued by the U.S. Army Corps of Engineers.
The case was investigated by the U.S. Environmental Protection Agency, Criminal Investigation Division. It is being prosecuted by David J. Perri, Assistant United States Attorney, and Perry D. McDaniel, Special Assistant United States Attorney.
U.S. Magistrate Judge James E. Seibert presided.
Three Enter Guilty Pleas in Shaw Air Force Base SchemeRead the Press Release
Contact Person: DeWayne Pearson (803) 929-3000
Columbia, South Carolina ---- James Autry “Audi” Clemens, age 60 of Johnston, SC, Larry Baker, age 64 of Cameron, SC and Steven Crandall, age 59 of Salisbury, NC entered guilty pleas to theft of government funds in violation of Title 18, United States Code, Section 641 in connection with their scheme to defraud Shaw Air Force Base through various construction contracts. Clemens entered an additional guilty plea to one count of money laundering in violation of Title 18, United States Code, Section 1956(a)(1)(B)(i) for his role in the scheme. According to facts presented during the guilty plea hearing, the men would inflate costs of construction projects by submitting invoices that falsely claimed that additional workers and resources were used to complete construction jobs on the base. The men would then split the fraudulent payments between themselves. The maximum penalty Baker and Crandall face is 10 years imprisonment and a fine of $250,000. Clemens faces a maximum penalty of 20 years imprisonment and a fine of $500,000.
"Mr. Clemens guilty plea is significant in sending a message that while fraud involving government contracts may be initially lucrative, nothing lasts forever and the consequences are serious. We and our law enforcement partners will work continuously to uncover this type of criminal activity." said Thomas J. Holloman III, Special Agent in Charge, IRS Criminal Investigation. The case was also investigated by agents of the United States Air Force and was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.Springfield Man Sentenced for Crack Cocaine, FirearmRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was sentenced in federal court today for illegally possessing crack cocaine and a firearm.
Ulysses Johnson, 37, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to 12 years and six months in federal prison without parole.
On April 7, 2014, Johnson pleaded guilty to being a felon in possession of a firearm and to possessing crack cocaine with the intent to distribute. An undercover Springfield police officer purchased crack cocaine from Johnson on three separate occasions in December 2011 and January 2012. Officers executed a search warrant at Johnson’s residence on Jan. 18, 2012, and found a loaded FIE Tanfoglio .22-caliber revolver in the nightstand of the master bedroom, a partial box of .357-caliber and .22-caliber ammunition the hallway bathroom and a large bag that contained 12.64 grams of crack cocaine, divided into eight smaller individual baggies, hidden in an oven mitt in the kitchen. Johnson was placed under arrest.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearms or ammunition. Johnson has prior felony convictions for aggravated robbery and taking a driving a vehicle without consent, two prior felony convictions for delivery of a controlled substance and two prior felony convictions for possession of THC.
This case was prosecuted by Assistant U.S. Attorneys Ami Harshad Miller and Cindy Hyde. It was investigated by the Springfield, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Soto-Vasquez Brothers Each Sentenced to Ten Years in Federal Prison for Drug DealingRead the Press Release
PORTLAND, Ore. -- United States District Judge Anna J. Brown sentenced, in separate proceedings, Jose Antonio Soto-Vasquez, 29, and Jesus Manuel Soto-Vasquez, 27, each to ten years in federal prison on Wednesday, October 1, 2014. Earlier this year, both co-defendants pleaded guilty to conspiracy to distribute and possess with intent to distribute methamphetamine.
“The sentences in this case reflect the seriousness of federal sentencing for drug distribution,” said U.S. Attorney Amanda Marshall.
Both brothers were investigated by the Drug Enforcement Administration (DEA) as part of drug distribution ring operating in Salem, Oregon and were arrested in 2013. They admitted to officers that they had been active in a southern Oregon outdoor marijuana grow and had returned to Salem where they distributed marijuana and methamphetamine. Each defendant was found by the court to have possessed a firearm in connection with the offense. The quantity of methamphetamine they possessed for sale subjected them to a ten-year mandatory minimum sentence.
The case was investigated by the Salem office of the DEA and prosecuted by Assistant U. S. Attorney Thomas H. Edmonds.
Seattle Man, Nicholas Saine, Sentenced for Possession of Child PornographyRead the Press Release
U.S. Attorney Kenneth Polite announced that NICHOLAS SAINE, age 27, a resident of Seattle, Washington, was sentenced today for possession of child pornography.
According to court documents, in November 2013, SAINE was arrested by special agents with the United States Department of Homeland Security, Homeland Security Investigations (“HSI”) and the United States Postal Inspection Service after they determined that SAINE possessed videos depicting the sexual exploitation of children on the Internet. SAINE had received the videos through websites operated by Johnathan Johnson, who was based in Abita Springs, Louisiana. On April 30, 2014, SAINE entered a plea of guilty to knowingly possessing several videos depicting the sexual exploitation of children.
U.S. District Judge Kurt Engelhardt sentenced SAINE to 37 months imprisonment, five years of supervised release, and ordered that SAINE will have to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations and the U.S. Postal Inspection Service. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba.
Santa Clara Pueblo Man Pleads Guilty to Federal Assault ChargesRead the Press Release
ALBUQUERQUE – Brandon Tafoya, 23, a member of the Santa Clara Pueblo who resides in Espanola, N.M., pleaded guilty this morning to two counts of assault resulting in serious bodily injury.
Tafoya was arrested on Nov. 5, 2013, on an indictment charging him with two counts of assault resulting in serious bodily injury. The indictment alleged that Tafoya knowingly drove a vehicle while under the influence of alcohol on April 11, 2013, in Santa Clara Pueblo in Rio Arriba County, N.M., and recklessly crashed into another vehicle causing two women to suffer serious bodily injuries.
During today’s proceedings, Tafoya pled guilty to the indictment and admitted assaulting the victims by crashing into their vehicle while he was driving under influence of alcohol. Tafoya acknowledged that as a result of the assaults, the victims sustained internal injuries, cuts and lacerations. One of the victims also sustained a hip fracture and a pelvic fracture.
Under the terms of his plea agreement, Tafoya will be sentenced to a prison term not to exceed three years, including two years at a rehabilitation program and a year in a transitional half-way house or such other program that may be designated by the U.S. Probation Office.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services and the Santa Clara Tribal Police Department and is being prosecuted by Assistant U.S. Attorney Presiliano A. Torrez.
San Antonio Man Sentenced to Federal Prison in Aggravated Identity Theft and Mail Fraud SchemeRead the Press Release
In San Antonio today, 31-year-old Michael Floyd White was sentenced to 39 months in federal prison followed by three years of supervised release and ordered to pay $112,362 restitution for his role in an aggravated identity theft and mail fraud scheme announced United States Attorney Robert Pitman and Special Agent in Charge Steven McCullough, Internal Revenue Service Criminal Investigation, San Antonio Field Office.
By pleading guilty to one count of mail fraud and one count of aggravated identity theft, White admitted that from January 2011 to February 2012, he and 30–year-old co-defendant Sasha Cher-Von Beckett knowingly devised a scheme to defraud the Internal Revenue Service by submitting fraudulent Income Tax returns seeking refunds totaling approximately $160,000. Throughout the scheme, White and Beckett would use names, dates of birth and social security numbers of other individuals to electronically file numerous Income Tax returns, then collect the refunds by using the debit card option and having those debit cards mailed directly to them.
Beckett awaits sentencing after pleading guilty to the one count each of mail fraud, aggravated identity theft and access device fraud. She faces up to 20 years in federal prison for mail fraud and access device fraud. She also faces a mandatory two years in federal prison for aggravated identity theft. Beckett is scheduled to be sentenced at 1:30pm on October 22, 2014, before United States District Judge Xavier Rodriguez.
“IRS Criminal Investigation continues our emphasis on vigorously investigating refund fraud and identity theft. This deliberate fraud can impede honest taxpayers from receiving their lawful refund and causes monetary loss to the U.S. Treasury. Today’s sentencing of Mr. White should serve as a strong warning to those who are considering similar illegal conduct. Those who engage in these fraudulent activities will be held accountable for their criminal actions,” stated IRS Criminal Investigation Special Agent in Charge Steven McCullough.
This case was investigated by special agents with the IRS Criminal Investigation together with the San Antonio Police Department. Assistant United States Attorney Tom Moore is prosecuting this case on behalf of the Government.
Red Valley Man Sentenced to 153 Months for Involuntary Manslaugther and Use of A Firearm in A Crime of ViolenceRead the Press Release
PHOENIX – On Sept. 29, 2014, Joe Arviso Benally, 51, of Red Valley, Ariz., was sentenced by U.S. District Judge G. Murray Snow to 153 months’ imprisonment followed by five years of supervised release. Benally was found guilty by a federal jury on July 9, 2014, of involuntary manslaughter and use (discharge) of a firearm in a crime of violence, the offense occurred on the Navajo Nation Indian Reservation.
The evidence at trial was that Benally, after an argument, retrieved his .270 caliber hunting rifle, loaded it, and shot the victim in the chest, killing him.
The investigation in this case was conducted by Federal Bureau of Investigation and the Navajo Nation Department of Public Safety. The prosecution was handled by Christina Covault and Melissa Karlen, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-13-8095-PCT-GMS
RELEASE NUMBER: 2014-056_BenallyFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Rapid City Man Pleads Not Guilty to Assaulting His Intimate Partner with A KnifeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon, Assault by Strangulation and Suffocation, and Assault Resulting in Substantial Bodily Injury to an Intimate Partner.
Isaac White Crane, age 29, was indicted on September 23, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on September 26, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to White Crane using a knife to cause substantial bodily injury to his intimate and dating partner on January 8, 2014, near Kyle. He also strangled and suffocated her.
The charges are merely accusations and White Crane is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
White Crane was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Portsmouth Woman Sentenced to 15 Years for Her Role in Conspiracy to Produce Child PornographyRead the Press Release
NORFOLK, Va. – Nina Renee Calderon, 23, of Portsmouth, Virginia, was sentenced today to 15 years in prison, followed by lifetime supervised release, for production of child pornography.
Dana J. Boente, United States Attorney for the Eastern District of Virginia and Clark Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C., Field Office, made the announcement after sentencing by U.S. District Judge Robert G. Doumar.
Calderon pleaded guilty on May 7, 2014. According to court documents, Calderon became involved in a conspiracy to produce child pornography when she was contacted by coconspirator Robert Harold Scott, Jr. under his assumed online identity of “Mike Pyro.” Scott would routinely communicate with women in and around the Tidewater area to set up “sex parties,” where the women would work as prostitutes and Scott would pay them for their services. In reality, Scott would not pay them and, at times, extort the women by threatening to publish sexually explicit videos they had created for the promise of additional money. In addition to the adult parties, Scott was found to be conspiring with and producing child pornography with several different women, including Calderon. Law enforcement found that, when discussing the sex parties, sometimes Scott would request these women to produce child pornography and was very specific as to the sex acts he wanted done on camera. Calderon complied in return for the promise of money. Specifically, Calderon produced child pornography with a 2 year old female child.
This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:13-cr-164.
Pine Ridge Man and Woman Indicted for Assault on A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, man and woman have been indicted by a federal grand jury for Assault on a Federal Officer.
Trivian Bad Wound, age 50, and Donroy Big Crow, age 57, were indicted on September 23, 2014. They appeared before U.S. Magistrate Judge Veronica L. Duffy on September 26, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Bad Wound and Big Crow assaulting a law enforcement officer employed with the Oglala Sioux Tribe Department of Public Safety on March 18, 2014, near Pine Ridge.
The charge is merely an accusation and Bad Wound and Big Crow are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Bad Wound was released on bond. Big Crow was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Pierre Woman Charged with Acquisition of A Controlled Substance by MisrepresentationRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pierre, South Dakota, woman has been indicted by a federal grand jury for Acquisition of a Controlled Substance by Misrepresentation, Fraud, Forgery, Deception, and Subterfuge.
Terri Lee Morin, age 42, was indicted on September 16, 2014. She appeared before U.S. Magistrate Judge Mark A. Moreno on September 25, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 4 years in custody and/or a $250,000 fine, 1 year of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between January 13, 2012, and March 13, 2014, Morin knowingly and intentionally acquired and obtained possession of the controlled substances Zolpidem and Lorazepam by misrepresentation, fraud, forgery, deception, and subterfuge.The charge is merely an accusation and Morin is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Office of the Inspector General of the U.S. Department of Health and Human Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Morin was released on bond pending trial. A trial date has not been set.
Philadelphia Woman Sentenced to Prison for Participating in Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Philadelphia resident was sentenced today to serve six months in prison for her role in a heroin trafficking conspiracy by U.S. District Court Judge Malachy E. Mannion.
According to United States Attorney Peter Smith, the defendant, Linda Reyes, age 24, previously admitted that she conspired with others, including an inmate at the Waymart State Prison, to distribute and possess with intent to distribute heroin during November 2013 through March 2014.
Reyes was indicted by a federal grand jury on March 11, 2014, as a result of an investigation by special agents and task force officers of the Federal Bureau of Investigation and Scranton Police.
Judge Mannion ordered Reyes to serve three years of supervised release following her prison sentence, and spend the first six months of supervised release on home confinement. Reyes must also pay a special assessment of $100.
Reyes’ two co-defendants, Luis Morales and Eudy Gonzalez, have also pleaded guilty to participating in the heroin conspiracy and are awaiting sentencing.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Pennsylvania Man Sentenced on Firearm ChargeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Robert Reed, 49, of Bradford, PA, who was convicted of conspiracy to transport firearms outside state of residency, was sentenced to time served and two years supervised release by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that on October 7, 2008, the defendant, in exchange for crack cocaine, attempted to purchase a .45 caliber firearm for co-defendant Juan Lopez. However, the sales clerk was suspicious of the defendant’s behavior and refused to sell the firearm to Reed. At the time of the attempted purchase, the defendant knew that Lopez intended to bring the firearm into New York State to use it for an unlawful purpose.
Reed was arrested, along with Juan Lopez, Robert Reed, Jacqueline Runyan, Trisha Amidon, Robert Johnson, Misty Mihalko, Amy Hollingsworth, and Brett Abrams. Juan Lopez recruited the co-defendants residing in Pennsylvania to purchase firearms for him in exchange for cocaine and money. As a convicted felon, Lopez was unable to purchase guns on his own, prompting the need for the straw purchases. Lopez went to stores that sold guns in Pennsylvania with some of the co-defendants to select the firearms he wanted them to purchase. Lopez then brought the guns purchased in Pennsylvania back to the Buffalo area. Some of the firearms were recovered after being used in various crimes in Buffalo.
All of the defendants have been convicted and sentenced except for Juan Lopez who is scheduled to be sentenced by Judge Skretny on November 5, 2014 at 2:00 p.m.
Today’s sentencing is the culmination of an investigation by Special Agents of the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge James S. Higgins, New York Field Division.