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14 November 2014
Former Amazon Recruiter Sentenced to Prison for Welfare FraudRead the Press Release
A former executive recruiter for Amazon.com was sentenced today in U.S. District Court in Tacoma to one month in prison and three years of supervised release for Social Security fraud, announced Acting United States Attorney Annette L. Hayes. Between 2009 and 2012, MARLENE SCOTT, 42, concealed the fact that her mother and sister, who were welfare recipients, had moved from the United States to Lebanon and therefore were no longer entitled to collect welfare benefits in this country. SCOTT falsely told caseworkers that her mother and sister lived with her in the Magnolia neighborhood of Seattle. By hiding her mother and sister’s departure, defendant caused the Social Security Administration to pay out more than $50,000 in benefits, which Scott then withdrew. U.S. District Judge Ronald B. Leighton noted that SCOTT took the witness stand and lied when the case went to trial in June 2014. The judge declared a mistrial after the jury was unable to reach a unanimous verdict. Judge Leighton said the story SCOTT told on the witness stand was “preposterous.” Judge Leighton said Scott’s lies on the witness stand “were a profound offense to the legal system,” and, but for the false testimony, he might have given her a probationary sentence.
According to records filed in the case, SCOTT’s mother and sister moved to Lebanon in June 2009. The following year the women visited Scott in Seattle. They opened bank accounts in Magnolia and had their welfare payments deposited into those accounts. SCOTT repeatedly accessed the benefits by using her mother’s debit card or by forging her mother’s signature. During the 2010 visit, SCOTT called Social Security and claimed her mother was living in her home and SCOTT was charging her mother fair market rent. SCOTT forged her mother’s signature on forms and lied to Social Security personal when they called asking to speak to SCOTT’s mother. When investigators visited her home, SCOTT claimed her mother was visiting her sister and brother in North Carolina and provided a non-working phone number. SCOTT knew at the time that no one in her family remained in North Carolina since her brother had moved from there to Lebanon in 2003.
After the jury failed to return a verdict, SCOTT pleaded guilty on July 25, 2014. In accordance with the plea she repaid $50,973 to the government.
As prosecutors pointed out in their sentencing memorandum, those who defraud Social Security are stealing from the very poorest and most vulnerable Americans. Worse, fraud on the welfare system corrodes the trust required to maintain programs that provide a lifeline of last resort for the poor. Taxpayers contribute to SSI based on trust that the funds will be used to support others in real need. When someone like SCOTT, an Amazon professional, intentionally exploits that trust through fraud, the result is public cynicism, which further undermines these programs. The true victims of this offense are those genuinely in need.
In choosing to impose a prison term instead of home confinement, Judge Leighton said the prison time is “important as a message. This institution, the judiciary, cannot and will not knowingly tolerate perjury.”
The case was investigated by the Social Security Administration Office of Inspector General (SSA-OIG). The case was prosecuted by Assistant United States Attorneys Seth Wilkinson and Kate Crisham.
Felon Sentenced to Federal Prison for Brookings Gun PossessionRead the Press Release
MEDFORD, Ore. - On Monday, November 10, 2014, Senior U.S. District Judge Owen M. Panner sentenced Tyson Maurice Brown, 27, of Portland, Oregon, to 57 months in federal prison, after he pleaded guilty to being a felon in possession of a firearm. Brown will also be on three years of supervised release after he completes his prison term.
On June 6, 2013, a Brookings Police Department Sergeant stopped a stolen vehicle that Brown was driving. Brown and his two passengers were arrested. Police searched the vehicle and found a Ruger 9mm handgun with two loaded magazines in Brown’s bag. Police traced the weapon and determined that Brown was present when the firearm was purchased at a store in Medford, Oregon.
Police also found approximately ten grams of methamphetamine, cocaine, marijuana, digital scales, drug paraphernalia, ammunition, five cell phones, and over $2,000 cash in various locations in the vehicle.
Brown has prior felony convictions for unlawful manufacture/delivery/possession of cocaine in 2009 and robbery in the second degree in 2004.
This case was investigated jointly by the Brookings, Oregon Police Department and the U.S. Bureau of Alcohol, Tobacco, and Firearms, and was prosecuted by Assistant U.S. Attorney Judith R. Harper.
East Alton Man Sentenced for Drug and Money Laundering OffensesRead the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced that Demarcus L. Freeman was sentenced to 151 months in federal prison by the U.S. District Court in East St. Louis on Thursday, November 13, 2014.
Freeman, 33, is an East Alton resident. On August 7, 2014, Freeman pled guilty to federal charges of Distribution of Cocaine Base (“crack cocaine”) (2 counts); Possession With Intent to Distribute Cocaine Base; and Money Laundering.
At his change of plea hearing, Freeman admitted selling crack cocaine in Wood River, Illinois, on May 13, 2013 and again on June 4, 2013. Police stopped Freeman’s car on July 8, 2013, in Bethalto, Illinois, and seized 9 ounces of crack cocaine. Freeman admitted the cocaine in his car belonged to him.
Freeman also opened a credit union account in Wood River in the name of a relative. Freeman admitted laundering the proceeds of his drug dealing through the account, in an attempt to disguise the source of the money. Freeman laundered over $60,000. The federal government seized $10,010.39 from the account at the time of Freeman’s arrest. The United States Attorney’s Office has moved to forfeit the $10,000 as drug trafficking proceeds.
At Freeman’s sentence hearing on November 13, 2014, U.S. District Court Judge Michael J. Reagan commented that “the 151 month sentence I have imposed is driven primarily by deterrence and the need to protect the public.” Judge Reagan noted that Freeman is a “career offender” under applicable federal sentencing guidelines, and that Freeman has numerous prior felony convictions for dealing drugs and domestic battery.
The investigation which resulted in Freeman’s arrest and conviction was conducted by the Wood River Police Department and the Drug Enforcement Administration.
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
District Man Sentenced to 10 Years in Prison for Armed Robbery at Northwest Washington Laundromat-Defendant Attacked Victim with A Box-Cutter Knife -Read the Press Release
WASHINGTON – Saleem Elamin, also known as Tariq El-Amin, was sentenced today to 10 years in prison for an armed robbery of a woman he attacked and cut with a knife at a Northwest Washington laundromat, U.S. Attorney Ronald C. Machen Jr. announced.
Elamin, 33, of Washington, D.C., was found guilty by a jury in September 2014, following a trial in the Superior Court of the District of Columbia. At sentencing, the Honorable William M. Jackson called the defendant’s violence in cutting the victim with the knife “gratuitous.” Following completion of his prison term, Elamin will be placed on five years of supervised release.
According to the government’s evidence, on May 6, 2014, at about 2:30 p.m., Elamin walked into a laundromat in the 1200 block of Underwood Street NW. The victim, a customer, was sitting and waiting for her clothes to finish washing. Elamin had a box-cutter knife concealed in the sleeve of his jacket. Without saying anything, he cut the victim’s arm, grabbed her purse off her lap, and ran out. A witness followed him out of the laundromat, and chased him as he fled into a nearby alley.
Officers with the Metropolitan Police Department (MPD) later found Elamin in a stairwell off the alley, with the knife and purse at his feet. The victim and eyewitness identified him at the scene. Elamin also gave a statement to police in which he admitted the crime.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Melissa Milam; Paralegal Specialists Nicole McGhee and Wanda Trice, and Assistant U.S. Attorney Christopher M. Bruckmann, of the Felony Major Crimes Trial Section, who investigated and prosecuted the matter.
14-256Desperado's Owner Sentenced to 72 Months in Prison for Racketeering ConspiracyRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Desperado’s Cabaret owner James Panos was sentenced to 72 months in prison for racketeering conspiracy.
James “Jim” Panos, 56, of Broussard, La., was sentenced by U.S. District Judge Elizabeth E. Foote for one count of racketeering conspiracy at the now closed Desperado’s Cabaret in Carencro, La. He was also sentenced to two years of supervised release and agreed to forfeit illegal proceeds, 10 firearms already seized, the Desperado’s property, to include the building and land.
In addition to Panos, his wife, Jennifer Panos, 48, of Broussard, was also sentenced to 48 months in prison and two years of supervised release for one count of racketeering conspiracy, as well as forfeiture of the items listed.
The following former Desperado’s employees were also sentenced today for one count of conspiracy to maintain drug involved premises and distribution of controlled substances:
- Tanja Clavier, 29, of Church Point, La. was sentenced to five years probation.
- Acquila Latigue, 28, of New Iberia, La., was sentenced to five years probation.
“The defendants conspired to promote an environment of drug abuse and prostitution in our community without regard to the harm it caused,” Finley stated. “This office will continue to work to prosecute anyone who violates the law and damages our communities with these types of activities. I want to thank the law enforcement agencies for their hard work.”
James Panos, Jennifer Panos, Clavier and Latigue are the last defendants in a 10-count indictment to be sentenced. They were charged on May 15, 2013, in an indictment alleging racketeering conspiracy, drug conspiracy, and firearms charges. The charges are the result of an investigation of drug trafficking, drug distribution, prostitution, and other illegal activity that took place at Desperado’s Cabaret in Carencro located on Northeast Evangeline Thruway.
On August 7, 2014, Desperado’s co-owner Dipak Vora, 70, of Baton Rouge, and five others were also sentenced for their roles in the illegal activity at Desperados’. Vora was sentenced to 10 months in prison, one year of supervised release and a $10,000 fine for one count of interstate and foreign travel or transportation in aid of racketeering, and Gerald Cormier, 44, of Carencro, was sentenced to 29 months in prison and one year of supervised release on his conviction for distribution of cocaine.
The following former Desperado’s employees were sentenced August 7, 2014 for one count of conspiracy to maintain drug involved premises and distribution of controlled substances:
- Elias “E.J.” White, 53, of Lafayette, was sentenced to 54 months of probation;
- Heike Slattery, 42, of Carencro, was sentenced to two years of probation;
- Crystal Sampy, 32, of Lafayette, was sentenced to three years of probation and a $1,000 fine.
- Lydia “Unique” Gauthreaux, 32, of Crowley, was sentenced to three years of probation and a $1,000 fine.
In total, 10 defendants were convicted of felony racketeering and drug charges, approximately $1.2 million in assets and proceeds were seized and forfeited, and Desperado’s has been closed since December 5, 2012, and will remain so indefinitely. The U.S. Drug Enforcement Administration, the Federal Bureau of Investigation, the U.S. Department of Homeland Security Investigations, Louisiana State Police and Lafayette Metro Narcotics investigated the case. Assistant United States Attorneys Myers Namie and Daniel McCoy prosecuted the case.
DC Heroin Dealer Sentenced to 25 Years in PrisonRead the Press Release
ALEXANDRIA, Va. – Antowan Thorne, also known as “Smooth,” 37, of Washington, DC, was sentenced today to 300 months in prison, followed by five years of supervised release, for conspiring to distribute 100 grams or more of heroin.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
Thorne was found guilty on August 20, 2014 of conspiracy to distribute 100 grams or more of heroin following a bench trial before Judge Brinkema. According to court documents, Thorne was a DC-based heroin dealer that targeted young individuals from northern Virginia as customers. On August 21, 2013, the defendant sold heroin to a group of individuals from Fairfax County, Virginia, including 16-year-old Emylee Lonczak. According to testimony at trial, Lonczak became unconscious immediately after ingesting a portion of the heroin sold by Thorne. Lonczak was found dead the following morning, and a toxicology report found a fatal level of morphine (as a result of heroin) in her system.
This case was investigated by the DEA and the Fairfax County Police Department. Assistant U.S. Attorney Michael P. Ben’Ary and Virginia Assistant Attorney General and Special Assistant U.S. Attorney Marc J. Birnbaum 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 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-165.Tweet
Colorado Man Sentenced to 7 Years in Prison on Charges Related to Stealing Verizon Telecommunications EquipmentRead the Press Release
TULSA, Okla. — A Colorado man was sentenced today by United States District Court Judge John E. Dowdell to serve 84 months in prison and three years of supervised release for charges related to stealing and selling millions of dollars’ worth of Verizon Communications telecommunications equipment, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
On August 13, 2014, Jesse Michael Greenwald, 59, of Colorado, pleaded guilty to conspiring to commit money laundering. Other defendants charged in the same Indictment were Scott Gollan, 26, and Michael Greenwald, 25, both of Bastrop, Texas, and James Pennoyer, 49, of Tulsa. Michael Greenwald, Gollan, and Pennoyer have also pleaded guilty to charges arising from the thefts from Verizon and are awaiting sentencing.According to court documents filed in the case, from July 2009 to May 2014, Pennoyer was a contract employee at the Verizon Communications warehouse in Tulsa, and aided the other defendants in stealing telecommunications equipment from the warehouse. The defendants transported the stolen equipment to Colorado Springs, Colorado, and stored it in a facility to be sold at a later date. Much of the equipment was sold to a company in North Carolina, which made substantial payments to Greenwald and his co-conspirators. The conspirators, including Greenwald, then used the funds to engage in illegal monetary transactions of more than $10,000 each.
In addition to the prison sentence, United States District Judge Dowdell ordered Jesse Greenwald to pay restitution in the amount of $4,419,125.
The case was investigated by the Federal Bureau of Investigation and the IRS-Criminal Investigation. The case was prosecuted by Assistant United States Attorneys Jeffrey A. Gallant and Kevin C. Leitch on behalf of the United States.
U.S. v. Jesse Michael Greenwald
Cocaine Dealer in Eastern Shore Ring Sentenced to Nine Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Anthony Hardy, age 43, of Nanticoke, Maryland, today to nine years in prison followed by five years of supervised release for conspiring to distribute cocaine.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Wicomico County Sheriff Michael A. Lewis; Salisbury Police Chief Barbara Duncan; Chief Michael Phillips of the Fruitland Police Department; U.S. Marshal Johnny Hughes; and Wicomico County State’s Attorney Matthew Maciarello.
According to his guilty plea, Hardy conspired with Maurice Hardy (no relation) and others to distribute cocaine. Anthony Hardy supplied Maurice Hardy with cocaine on several occasions during the course of the investigation and was overheard on by law enforcement discussing drug transactions with Maurice Hardy. Maurice Hardy’s primary source of supply was Austin Roberts. On May 11, 2011, Hardy indicated in a telephone call to Anthony Hardy that Roberts would be supplying him with seven kilograms of cocaine for $31,500 per kilogram. The next day in Salisbury, Maryland, Andrew Jackson, under Roberts’ direction, provided several kilograms of cocaine to Maurice Hardy. Subsequent to this meeting, law enforcement stopped Jackson’s vehicle and seized over $160,000 from a hidden compartment.
On June 28, 2011, during a telephone call, Anthony Hardy told Maurice Hardy that he had 12 kilograms of cocaine. Maurice Hardy agreed to purchase two kilograms of cocaine at $33,000 per kilogram. According to his plea agreement, Anthony Hardy did not actually have 12 kilograms of cocaine in his possession. This is reflected by the fact that the next day, Anthony Hardy met Maurice Hardy in Nanticoke, and provided Maurice Hardy with 1.027 kilograms of cocaine, not two kilograms as had been agreed upon. After the meeting, law enforcement stopped Maurice Hardy’s car and seized the cocaine.
During the course of the conspiracy, Anthony Hardy and his co-conspirators distributed over 5 kilograms of cocaine.
Maurice Kenneth Hardy, age 37, of Bridgeville, Delaware, pleaded guilty to his role in the conspiracy and was sentenced to 16 years in prison. Austin Roberts, III, age 37, formerly of Elkridge, Maryland; Andrew Jackson, age 39, of Baltimore, Maryland; and Tereek Nutter, age 30, of Salisbury, Maryland, also pleaded guilty to their participation in the drug conspiracy and were sentenced to 19 years in prison,10 years in prison and 151 months in prison, respectively.
United States Attorney Rod J. Rosenstein commended the DEA, U.S. Marshals Service and the Wicomico County Narcotics Task Force, comprised of the Maryland State Police, Wicomico County Sheriff’s Office, Salisbury Police Department, Fruitland Police Department, and the Wicomico County State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorney Peter J. Martinez, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Clarksburg Woman Sentenced in Detroit to WV Painkiller Distribution NetworkRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Jaunita Farnsworth, 31, of Clarksburg, West Virginia, was sentenced to 37 months in prison for her role in an oxycodone distribution network, United States Attorney William J. Ihlenfeld, II, announced today.
Farnsworth pled guilty in March 2014 to one count of “Possession with Intent to Distribute Oxycodone.” An investigation by the Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives uncovered the painkiller distribution network. Oxycodone pills were transported from Detroit, Michigan to West Virginia. Farnsworth, among others, redistributed the painkillers in the community.As part of the sentence, Farnsworth was also ordered to forfeit two firearms, ammunition and $5,947.00 in currency.
Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Cincinnati, Ohio, Man Pleads Guilty to Sex TraffickingRead the Press Release
– Victims were boarded and locked inside his Cincinnati home and driven from Cincinnati to Louisville for prostitution
LOUISVILLE Ky. – A Cincinnati, OH, man pleaded guilty in U.S. District Court today to multiple charges including commercial sex trafficking, announced Acting Assistant Attorney General Vanita Gupta and U.S. Attorney for the Western District of Kentucky David J. Hale.
Christopher Hisle, 45, was arrested on April 8, 2014, in Louisville, Kentucky after he drove a young woman from Cincinnati to Louisville to engage in prostitution at the Red Roof Inn on Blairwood Road. A subsequent FBI investigation revealed Hisle’s involvement in forcing and compelling multiple young women to engage in commercial sex.
Hisle pleaded guilty before Senior District Court Judge John G. Heyburn II today to a four-count federal indictment including one count of sex trafficking by force, fraud, or coercion, two counts of enticing a person to travel in interstate commerce for the purpose of prostitution and one count of interstate transportation for the purpose of prostitution.
According to the plea agreement, Hisle physically assaulted several of the victims, including striking one of the victims in the face when she threatened to run away. Hisle locked the victims in his house in Cincinnati, by boarding and locking all the doors and windows. Only the front door was capable of opening, and only Hisle had the key to the front door, which locked on both sides allowing Hisle to lock the women in the house when he left. On one occasion, a young woman escaped, only to be found and brought back to the house by Hisle.
“This defendant preyed on vulnerable young victims and cruelly exploited them for his profit,” stated Acting Assistant Attorney General Vanita Gupta. “Our Constitution guarantees freedom from involuntary servitude and slavery to all members of our society, and we will continue to enforce our human trafficking laws to restore the rights, freedom and dignity to victims of modern-day slavery.”
“My office is committed to seeking justice for victims of human trafficking,” stated U.S. Attorney David J. Hale. “Tragically, these crimes so often pass without detection because victims live in fear from physical abuse, threats and other forms of coercion. My office has worked to improve detection and prosecution by sponsoring training for our federal and local law enforcement partners.”
“Sex Trafficking is a crime that victimizes people in a highly personal manner. Victims often feel as if they have no options and no hope. Detecting sex trafficking is essential to stopping it. The FBI works with State and Local partners to uncover this heinous crime. If you believe you are a victim of sex trafficking or may have information about a particular trafficking situation, please contact the FBI,” said FBI Special Agent in Charge Howard S. Marshall.
Hisle faces a mandatory minimum sentence of 15 years in prison. Sentencing has been set for February 9, 2015 in Louisville. As part of his plea agreement, Hisle will pay restitution to 12 women identified as victims of Hisle’s human trafficking crimes.
This case is being prosecuted by Assistant U.S. Attorney Amanda E. Gregory of the U.S. Attorney’s Office for the Western District of Kentucky and Trial Attorney William Nolan of the Civil Rights Division’s Human Trafficking Prosecution Unit and is being investigated by the FBI.
Cincinnati Man Pleads Guilty to Sex Trafficking by Force, Fraud and CoercionRead the Press Release
A Cincinnati resident, Christopher Hisle, 45, pleaded guilty today to one count of commercial sex trafficking by force, fraud or coercion, two counts of enticing a person to travel in interstate commerce for the purpose of prostitution and one count of interstate transportation for the purpose of prostitution. Police arrested Hisle on April 8, 2014, in Louisville, Kentucky, after discovering Hisle drove a young woman from Cincinnati to Louisville to engage in prostitution at a Red Roof Inn. A subsequent FBI investigation revealed Hisle’s involvement in forcing and compelling multiple young women to engage in commercial sex.
According to the plea agreement, Hisle physically assaulted several of the victims, including striking one of the victims in the face when she threatened to run away. Hisle locked the victims in his house in Cincinnati by boarding and locking all the doors and windows, including locking the women in the house when he left. On one occasion, a young woman escaped, but Hisle found her and brought her back.
“This defendant preyed on vulnerable young victims and cruelly exploited them for his profit,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “Our Constitution guarantees freedom from involuntary servitude and slavery to all members of our society, and we will continue to enforce our human trafficking laws to restore the rights, freedom and dignity to victims of modern-day slavery.”
“My office is committed to seeking justice for victims of human trafficking,” said U.S. Attorney David J. Hale for the Western District of Kentucky. “Tragically, these crimes so often pass without detection because victims live in fear from physical abuse, threats and other forms of coercion. My office has worked to improve detection and prosecution by sponsoring training for our federal and local law enforcement partners.”
“Sex Trafficking is a crime that victimizes people in a highly personal manner,” said Special Agent in Charge Howard S. Marshall of the FBI’s Louisville Office. “Victims often feel as if they have no options and no hope. Detecting sex trafficking is essential to stopping it. The FBI works with state and local partners to uncover this heinous crime. If you believe you are a victim of sex trafficking or may have information about a particular trafficking situation, please contact the FBI.”
Hisle faces a mandatory minimum sentence of 15 years in prison. Senior District Court Judge John G. Heyburn II set sentencing for Feb. 9, 2015. As part of his plea agreement, Hisle will pay restitution to 12 women identified as victims of Hisle’s human trafficking crimes.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Amanda E. Gregory of the U.S. Attorney’s Office for the Western District of Kentucky and Trial Attorney William Nolan of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Chinese National Sentenced to Forty-One Months for Scheme to Aid Undocumented Aliens in Obtaining Drivers’ LicensesRead the Press Release
ALBUQUERQUE – Hai Gan, 57, a legal, permanent resident from China who resides in The Colony, Texas, was sentenced yesterday afternoon in federal court in Las Cruces, NM, for his conviction on fraud, immigration and witness-tampering charges. The sentence was announced by U.S. Attorney Damon P. Martinez, Acting Special Agent in Charge Tom Hernandez of Homeland Security Investigations (HSI) in El Paso, Texas, and Acting Chief Patrol Agent Benjamin C. Huffman, El Paso Sector of the U.S. Border Patrol.
Hai Gan was sentenced to 41 months in federal prison; he will be deported after he completes his prison sentence. Hai Gan was also ordered to forfeit to the United States his interests in four houses used by Gan to facilitate his criminal activity and approximately $27,000.00, which represent part of his criminal proceeds.
Hai Gan was arrested on May 11, 2011, at a U.S. Border Patrol checkpoint on Interstate 25 north of Doña Ana County, N.M., when Border Patrol Agents learned that he was transporting an illegal alien. Hai Gan subsequently was indicted and charged with 51 counts of fraud in connection with identification documents, eight counts of transporting illegal aliens, three counts of money laundering and two counts of witness-tampering. The indictment also sought forfeiture of four residences owned by Hai Gan, including two in Albuquerque, N.M., and one in Moriarty, N.M.
On Feb. 11, 2014, Hai Gan was convicted on all 64 counts of the indictment by a federal jury after a six-day trial. The evidence at trial established that from Aug. 2009 to May 2011, Hai Gan engaged in a scheme to aid undocumented aliens who were not New Mexico residents in obtaining New Mexico drivers’ licenses by assisting the aliens in fabricating fraudulent documents purportedly establishing New Mexico residency; arranging for the aliens to travel to New Mexico; and assisting the aliens in securing New Mexico drivers’ licenses by fraudulently attesting that they were New Mexico residents. The evidence also established that Hai Gan advertised his services in Chinese–language newspapers, and charged each alien upwards of $3000 for his services. Hai Gan would first work with the alien to develop false residency documents using one of the residences he owned in New Mexico as the alien’s address. After sufficient fraudulent residency documentation was developed, Hai Gan typically would meet the alien at the Albuquerque airport and assist the alien in obtaining a temporary New Mexico driver’s license. When the alien’s permanent driver’s license was delivered to the address identified as the alien’s residence, Hai Gun would then mail the driver’s license to the alien’s true home.
The evidence also established that Hai Gan transported undocumented aliens in Bernalillo and Torrance Counties on eight occasions between Dec. 2009 and May 2011. An undocumented alien testified that in Nov. or Dec. 2012, Hai Gan attempted to dissuade him from testifying against him by suggesting that he would be arrested if he did not relocate. The wife of another alien testified that Hai Gan called her and requested that her husband relocate or deny knowledge of Hai Gan’s criminal activities.
This case was investigated by Homeland Security Investigations, the U.S. Border Patrol, the Department of Homeland Security-Office of Inspector General, and HSI El Paso’s Financial Operations and Currency Unified Strike Force (FOCUS), which includes DEA, Texas Department of Public Safety, IRS Criminal Investigation and U.S. Secret Service, and the Tax Fraud Investigations Division of the New Mexico Taxation and Revenue Department. The case was prosecuted by Assistant U.S. Attorney Randy M. Castellano and Special Assistant U.S. Attorney Michael S. Pleters of U.S. Immigration and Customs Enforcement.
Chief Engineer of Car-Carrier Vessel Pleads Guilty to Obstruction of Justice in Marine Oil Pollution CaseRead the Press Release
The chief engineer of the cargo vessel M/V Selene Leader pleaded guilty today in federal court in Baltimore, Maryland, to obstruction of justice and violating the Act to Prevent Pollution from Ships (APPS), announced Acting Assistant Attorney General Sam Hirsch and U.S. Attorney Rod J. Rosenstein of the District of Maryland.
Noly Torato Vidad was the chief engineer of the vessel, which was operated by Hachiuma Steamship Co LTD, a Japanese company, between August 2013 and the end of January 2014. The M/V Selene Leader According to the plea agreement, in January 2014, engine room crew members of the M/V Selene Leader under the supervision of the defendant transferred oily wastes between oil tanks on board the ship using rubber hoses and then illegally bypassed pollution control equipment and discharged the oily wastes overboard into the ocean. Before such waste can be discharged into the sea, the law requires that it must first pass through an oil water separator, and the operation must be recorded in the vessel’s oil record book for inspection by the United States Coast Guard.
When the Coast Guard boarded the vessel in Baltimore on Jan. 31, 2014, Mr. Vidad tried to obstruct the Coast Guard’s investigation and hide the illegal discharges of oil by falsifying the oil record book, destroying documents, lying to Coast Guard investigators and instructing subordinate crew members to lie to the Coast Guard.
Sentencing in this case is scheduled for Feb. 20, 2015.
This case was investigated by the U.S. Coast Guard Investigative Service and is being prosecuted by Assistant United States Attorney P. Michael Cunningham of the District of Maryland and Senior Trial Attorney David P. Kehoe of the Justice Department’s Environmental Crimes Section.
California Man Pleads Guilty to Multi-Million Dollar Fraud ScamRead the Press Release
BOSTON – A California man pleaded guilty today defrauding borrowers who sought loans from Quest Capital Finance.
Damien John Hess, 36, of Laguna Niguel, Calif., pleaded guilty to conspiracy to commit wire fraud and seven counts of wire fraud. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for Feb. 27, 2015 at 2:00 p.m.
Hess, who was the Chief Executive Officer of Quest Capital Finance, stole millions of dollars in deposits from people and companies who sought to borrow money from Quest. Hess, and others working for him, falsely represented that Quest was a financing company that could provide hundreds of millions of dollars of loans for businesses.
From 2008 through 2011, Hess and others at Quest persuaded businesses and individuals to put hundreds of thousands of dollars into escrow accounts, that is, into an account where the funds would be held by a third party until all contingencies for the loan were resolved, as deposits towards future loans. Hess and others at Quest promised the borrowers that the deposits would not be moved out of escrow unless and until the loan was being funded. In fact, shortly after the prospective borrower had deposited the money in escrow, Hess took all or most of the escrowed money and transferred it to his company, and, in some instances, transferred it to his personal accounts. Hess repeatedly took the escrowed funds without actually arranging financing for the borrowers, let alone making the first draws of financing available to the borrowers. In order to prevent prospective buyers from detecting the fraud, Hess, and others acting on behalf of Quest, continued to promise the prospective borrowers that Quest would soon be providing millions of dollars of financing. Quest did not provide financing nor did it refund the purportedly escrowed or refundable deposits.
The charging statutes provide sentences of no greater than five years in prison for the conspiracy count and 20 years in prison for each for the wire fraud counts, three years of supervised release, and a $250,000 fine or twice the gross loss or gain, whichever is greater, restitution and forfeiture. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement. The case is being prosecuted by Assistant United States Attorneys Sara Miron Bloom of Ortiz’s Economic Crimes Unit, Patrick Callahan of the Civil Division and Doreen Rachal of the Asset Forfeiture Unit.
Burlington County, N.J. Man Pleads Guilty to Robbing Nine Banks in Five MonthsRead the Press Release
CAMDEN, N.J. - An Edgewater Park, New Jersey, man today admitted to a nine-bank South Jersey robbery spree from September 2013 through January 2014, U.S. Attorney Paul J. Fishman announced.
Shalir Hall, 21, pleaded guilty before Chief U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him with nine counts of bank robbery.
Hall allegedly robbed the following New Jersey banks on the dates set forth below:
Beneficial Savings Bank
Willingboro
Sept. 27, 2013
Willingboro
Nov. 14, 2013
Beneficial Savings Bank
Willingboro
Nov. 26, 2013
PNC Bank
Mount Laurel
Nov. 29, 2013
3rd National Bank
Delran
Dec. 12, 2013
Roma Bank
Delran
Dec. 12, 2013
Columbia Savings Bank
Maple Shade
Dec. 17, 2013
TD Bank
Bellmawr
Jan. 8, 2014
PNC Bank
East Windsor
Jan. 8, 2014
According to documents filed in this case and statements made in court:
Hall robbed the Beneficial Savings Bank in Willingboro on Sept. 27, 2013, by threatening and intimidating bank employees, demanding money and then fleeing the bank. Hall joined forces with another individual, and the two went on to commit seven additional robberies in New Jersey – taking turns alternating between going into the banks and staying in the getaway vehicle. Hall committed the Dec.17, 2013 robbery of Columbia Savings Bank on his own. Hall was arrested in Newark on Jan.15, 2014, and has been detained on charges filed by the Burlington County Prosecutor’s Office since his arrest.
The charges to which Hall pleaded guilty each carry a maximum potential penalty of 20 years in prison and a $250,000 fine. Hall’s plea agreement also requires him to make full restitution to each of the banks. Sentencing is scheduled for Feb. 27, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agents In Charge Aaron T. Ford and Edward J. Hanko in Newark and Philadelphia, respectively. He also credited the Camden County Prosecutor’s Office and the Burlington County Prosecutor's Office; the Burlington County Sheriff’s Department Warrant Unit; and the U.S. Marshals Service New York/New Jersey Regional Fugitive Task Force; as well as the East Windsor Township Police Department, Willingboro Police Department, Maple Shade Police Department, Delran Township Police Department, Mount Laurel Police Department, Philadelphia Police Department and the Hazelton, Pennsylvania Police Department for their work leading to today's guilty plea.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney's Office Criminal Division in Camden.
14-400
Defense counsel: Gina A. Capuano, Esquire, Cherry Hill, N.J.
Hall, Shalir Information
Benjamin Suarez Sentenced to more than a Year in PrisonRead the Press Release
Benjamin Suarez was sentenced to 15 months in prison for obstruction of justice, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Suarez, 73, of Canton, was convicted in June of one count of obstruction of justice following a jury trial. Suarez was acquitted on seven counts related to campaign finance laws.
"The judge was correct that this defendant's criminal conduct struck at critical part of our democracy, our justice system," Dettelbach said "This sentence sends a simple message: no one is above the law."
"Benjamin Suarez has been held accountable for impeding the pursuit of justice," Anthony said. "It is imperative that law enforcement be able to fulfill their sworn duties when investigating any possible violation of the law."
Judge Patricia A. Gaughan also sentenced Suarez to two years of supervised release and fined him $15,000.
This case is the result of an investigation by the FBI-Canton Resident Agency. It is being prosecuted by Assistant United States Attorneys Carole S. Rendon, Rebecca Lutzko and Matthew Cronin.
Barker Man Sentenced on Drug ChargeRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Richard Dwyer, 29, of Barker, NY, who was convicted of conspiracy to import alpha-PVP, a synthetic narcotic, was sentenced to 33 months in prison by U.S. District Judge Richard J. Arcara.
According to Assistant U.S Attorney Mary Catherine Baumgarten, who handled the case, the defendant, along with his wife Erin Dwyer and David Jackson, conspired to import the synthetic narcotics from China using the Internet. The packages were then delivered to the defendant via the United States Postal Service.
Erin Dwyer and David Jackson have also been convicted and are awaiting sentencing.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, and the United States Postal Inspection Service, under the direction of Special Agent in Charge Shelly Binkowski,Attorney Sentenced to Five Years in Prison for Defrauding Investors of more than $17 Million and for Obstructing Grand Jury ProceedingsRead the Press Release
Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Gregory E. Grantham, age 57, of Oceanside, California, today to five years in prison, followed by three years of supervised release, for a wire fraud conspiracy, wire fraud and obstruction of justice. Judge Motz also ordered Grantham to forfeit/ pay restitution of $17.4 million.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
Grantham is a licensed attorney and between September 2009 and September 2011, was employed as General Counsel for IAGU Underwriters, LLC, as well as maintaining a private law practice. Graham’s co-defendant, Mervyn Phelan operated IAGU, which was in the business of underwriting loan applications submitted by real estate developers and then locating project financing from banks and other financial entities.
According to his plea agreement and court documents, between mid-2010 and August 2011, Grantham and Phelan became involved in a fraudulent scheme carried out by Patrick Belzner and Brian McCloskey, who both resided in Baltimore County. McCloskey owned a real estate development business known as the McCloskey Group, LLC. Belzner, a home builder, began working with McCloskey in late 2008 or early 2009. Phelan and IAGU began working with the McCloskey Group trying to locate sources of financing for its projects in about 2009.
Beginning in 2009 and continuing through June 2011, Belzner and McCloskey persuaded a series of private lenders to fund loans to establish that the McCloskey Group had reserves of cash that would supposedly help it obtain loans it was seeking in connection with real estate development projects through IAGU. Belzner and McCloskey falsely represented that the funds would be maintained in an escrow account under the control of Kevin Sniffen, a licensed attorney and escrow agent in Baltimore County; that the funds would not be used for any other purpose; and that the money would be returned to the lender, either upon the funding of the loan or after a specified period of time. In return for this temporary use of the lender’s funds, Belzner and McCloskey promised to pay substantial fees or interest. In fact, once the lenders transferred their funds into the escrow accounts, Belzner directed McCloskey to remove those funds from the escrow accounts without the knowledge or permission of the lenders. Belzner and McCloskey then used the majority of the stolen funds to pay for their personal and business expenses. The total losses resulting from the scheme were approximately $20 million.
Beginning in about the late summer of 2010, Grantham and Phelan co-operated with Belzner and McCloskey in their scheme to defraud by (1) making false representations to help persuade private lenders and investment partnerships to loan sums of money to the McCloskey Group for the purposes of meeting “liquidity” requirements imposed by IAGU or various prospective lenders and to place these funds in an escrow account controlled by Kevin Sniffen; and by (2) making false representations to dissuade previous escrow account lenders from demanding the return of their funds when the original time period established for the loan expired without the McCloskey Group obtaining financing for the project in question. In particular, Phelan and Grantham repeatedly advised various escrow account lenders that funding on a particular project was imminent when they knew this was not the case, and in one case represented that they were holding millions of dollars in escrow funds tendered by one group of lenders when this was not true.
At today’s sentencing the Court determined that Grantham was responsible for $17.4 million in losses as a result of the scheme.
Grantham and Phelan also obstructed grand jury proceedings from September to December, 2012, while a grand jury in Maryland was continuing the investigation of the fraud scheme. On September 26, 2012, FBI agents served Grantham and Phelan with grand jury subpoenas which called for the production of documents relating to the scheme. By this time, Belzner had already been indicted for conspiracy to commit wire fraud and this fact was publicly known. Grantham and Phelan agreed that they would not produce certain records in their possession, because those records would reveal their cooperation with and assistance to Belzner and McCloskey in providing false information to the escrow account lenders and their counsel. The records that Phelan and Grantham were willing to produce were provided to the FBI on November 19, 2012; incriminating records were not produced or were deleted from their computers and compact discs.
Patrick J. Belzner, a/k/a “Patrick McCloskey,” age 45, of Selbyville, Delaware, was sentenced to 15 years in prison for wire fraud conspiracy, wire fraud and tax evasion, and was ordered to $19.805 million in restitution. Brian McCloskey, age 42, of Baltimore and Kevin Sniffen, age 53, of Phoenix, Maryland have each pleaded guilty to their roles in the conspiracy and are scheduled to be sentenced on December 12, 2014, and December 19, 2014, respectively. Mervyn A. Phelan, Sr., age 74, of Newport Beach, California, has pleaded guilty and is scheduled to be sentenced on December 5, 2014.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the FBI and IRS – Criminal Investigation Division for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Jefferson M. Gray and Kathleen O. Gavin, who are prosecuting the case.
Army Sergeant Pleads Guilty to Theft of Military EquipmentRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III, announces that Luis Rafael Infantes (21, Elizabethtown, KY) has pleaded guilty to theft of government property. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
Infantes’s father, Pedro Luis Infantes, previously entered a guilty plea to the same charge on October 21, 2014. His sentencing date has been scheduled for January 22, 2015.
According to the plea agreement, on July 11, 2014, Infantes and his father unwittingly met with a confidential source who was working in cooperation with law enforcement. Infantes and his father believed that the source had connections to potential buyers affiliated with Mexican drug trafficking organizations. Ultimately, Infantes and his father negotiated a sale price of $153,500 for 17 military-grade, thermal- imaging monoculars, rifle cleaning kits, and other assorted military equipment that had been stolen from the government.
When the father later attempted to complete the transaction, he was arrested and interviewed by the FBI. The father provided false statements to agents about how he had acquired the military items and how the serial numbers on the items had been removed. Pedro Luis Infantes stated that he had purchased the equipment in that condition at assorted gun shows. In reality, Luis Rafael Infantes, an active-duty supply sergeant for the United States Army, had stolen the items from the Fort Knox military installation.
This case is being investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Alton Man Sentenced for Distribution of CocaineRead the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Demarcus O. Johnson, 30, of Alton, Illinois, was sentenced on Friday, November 14, 2014, to 151 months in federal prison for distribution of cocaine.
Johnson pled guilty on August 13, 2014, at which time he admitted selling cocaine to a police informant in Alton on September 23, 2013.
At Johnson’s sentence hearing, Judge Reagan noted that Johnson was a “career offender” under applicable federal sentencing guidelines, because Johnson had prior felony convictions for drug trafficking and aggravated fleeing from police. Judge Reagan stated that “your sentence is being determined in large part by your extensive criminal history.”
The investigation which resulted in Johnson’s arrest and conviction was conducted by the Alton Police Department.
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Alton Man Pleads Guilty in Heroin Overdose DeathRead the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced that on Thursday, November 13, 2014, Glenn P. Lowers pled guilty in U.S. District Court in East St. Louis, Illinois to a federal charge of Distribution of Heroin Resulting In Death.
At his change of plea hearing, Lowers, 21, of Alton, Illinois, admitted that he had sold heroin to his friend Joshua S. Shelton on September 3, 2013. Shelton’s grandfather discovered Shelton’s body at Shelton’s Alton residence a few hours after the heroin sale occurred. An autopsy established that Shelton had died from injecting heroin. Shelton was 21years old when he died.
Lowers’ sentence hearing is scheduled for February 5, 2015. Lowers will be confined until he is sentenced. Lowers faces a maximum possible sentence of 20 years in federal prison.
The investigation which resulted in the successful prosecution of Lowers was conducted by the Alton Police Department.
The case is assigned to Assistant United States Attorney Robert L. Garrison.
Alien Smuggler and 6 Others Indicted on Immigration-related ChargesRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned seven (7) indictments arising from an investigation into the transportation of illegal aliens.
Sabino Guerrero-Estrada, age 27, of Mexico, was indicted yesterday for transporting illegal aliens within the United States for commercial or private financial gain. According to the indictment, on October 17, 2014, the defendant was driving a sports utility vehicle on Interstate 12 in Baton Rouge containing numerous illegal aliens, including six individuals who allegedly had previously been deported from the United States. Those six individuals have been indicted for illegal re-entry by a previously removed alien and include Maria E. Ixtlilco-Barreto, Osvaldo Rosas-Valencia, Lorenzo Hernandez-Fabian, Daniel Hernandez-Fabian, Mario Mata-Cigarrero, and Dimas Rodriguez-Uriostegui.
U.S. Attorney Green stated: “The integrity of a nation’s borders and its immigration laws – to control who and what comes into and out of the country – is fundamental to any nation’s security. This is why Congress has passed numerous acts related to border security, immigration, and work-site enforcement. For the same reason, my office, together with our partners at the U.S. Department of Homeland Security, Homeland Security Investigations (HIS) and the U.S. Border Patrol, recognize the importance of enforcing the immigration laws.”
New Orleans HSI Special Agent-in-Charge Raymond R. Parmer, Jr., stated: “Human smugglers routinely treat people as little more than cargo and place aliens at great risk of harm all in the name of illegal profits. HSI’s excellent partnership with U.S. Border Patrol sends a strong message that the U.S. border is not open to illegal migration and individuals who place their fates into the hands of coyotes face significant risks during the journey along with prosecution and removal from the country once caught.”
New Orleans Sector Border Patrol Chief Jonathan Richards stated: “The New Orleans Border Patrol Sector’s efforts with its DHS partners reduces the ability of criminal organizations to exploit transportation routes within the area and degrades their ability to conduct criminal acts.”
This matter was investigated by the Baton Rouge offices of the U.S. Border Patrol and the U.S. Department of Homeland Security, Homeland Security Investigations (HSI). These matters are being prosecuted by Special Assistant U.S. Attorney J. Brad Casey.
NOTE: An indictment is an accusation by the Grand Jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Albuquerque Man Sentenced to 151 Months in Prison for Robbing Bank in January 2012Read the Press Release
Prior Felon Prosecuted Under Federal “Worst of the Worst” Anti-Violence Initiative
ALBUQUERQUE – Abran Felipe Armijo, 46, of Albuquerque, N.M., was sentenced yesterday to 151 months in federal prison followed by three years of supervised release for his bank robbery conviction. The sentence was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, and Albuquerque Police Chief Gorden Eden, Jr.
Armijo was arrested on Jan. 4, 2012, and charged by criminal complaint with robbing the BBVA Compass Bank branch located at 13140 Central Avenue SE in Albuquerque on that day. Armijo subsequently was indicted on that same charge.
Court filings reflect that on Jan. 4, 2012, Armijo entered the bank, verbally demanded money from a bank teller, and threatened the teller to comply with his demand. After the bank teller gave money to Armijo, he fled from the bank on foot. Acting on a tip, officers of the Albuquerque Police Department located Armijo in an apartment in southeast Albuquerque where he was hiding in a closet with a plastic bag containing money. Armijo was arrested after a witness positively identified him as the bank robber.
On July 25, 2013, Armijo pled guilty to the indictment without the benefit of a plea agreement.
Armijo’s sentence in this case was enhanced because of his status as a career offender. He was convicted of a crime of violence after having been previously convicted of at least two crimes of violence, two controlled substances crimes or a combination of the two types of offenses.
Armijo was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The case was prosecuted by Assistant U.S. Attorney Louis E. Valencia based on an investigation by the Albuquerque office of the FBI and the Albuquerque Police Department.Akron Doctor Charged for Illegally Distributing Prescription PainkillersRead the Press Release
A criminal information was filed charging an Akron physician with illegally distributing tens of thousands of doses of prescription painkillers, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Brian Heim, age 56, was charged with one count of conspiracy to distribute controlled substances and 20 counts of distribution of controlled substances.
“Our region is awash in opioids that have brought heartbreak and suffering to countless families,” Dettelbach said. “We will continue to work with the DEA to identify and prosecute physicians who illegally divert pills.”
Heim is registered with the State of Ohio Medical Board as a medical doctor specializing in family medicine, obstetrics and gynecology. From August 2011 through October 2012, Heim and others agreed to illegally distribute thousands of doses of prescription painkillers to customers from Heim’s office at 3562 Ridge Park Drive, Suite A, in Akron, according to the information.
Heim distributed and dispensed more than 30,000 tablets of Oxycodone, Oxycontin and Opana to various individuals for which there was not a legitimate medical purpose. He did this by one or more of the following manners: without adequate verification of the patient’s identity or medical complaint; without adequate and reliable patient medical history; without performance of a complete or adequate examination; without establishment of a true diagnosis; without the use of appropriate diagnostic or laboratory testing, and others, according to the information.
Heim and others did this by using pre-signed blank prescription forms upon which Heim’s staff would fill in the controlled substance and dosage to be prescribed, according to the information.
The case was prosecuted by Assistant U.S. Attorney Vasilie C. Katsaros following an investigation by the Drug Enforcement Administration.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.Abilene, Texas, Man Sentenced to 78 Months in Federal Prison for Possessing Child PornographyRead the Press Release
LUBBOCK, Texas — Justin Turcheck, 29, of Abilene, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 78 months in federal prison, following his guilty plea in August 2014 to one count of possession of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Turcheck is currently in federal custody. Judge Cummings revoked his pre-trial release last month, finding that Turcheck had violated his conditions of release.
Turcheck admitted that in mid-June 2012, he possessed an external hard drive that contained numerous images of child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Abilene Police Department, and the Air Force Office of Special Investigations investigated the case. Assistant U.S. Attorney Steven M. Sucsy of the U.S. Attorney’s Office in Lubbock, Texas, prosecuted.
3 Men Pled Guilty to Operating Heroin Conspiracy in New Orleans EastRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MICHAEL DAVID SORINA, JR., age 35, resident of Slidell, Louisiana, LARRY HARDY, age 48, resident of New Orleans, Louisiana, and TERRELL CARNEY, age 33, resident of New Orleans, pled guilty today to conspiracy to distribute and conspiracy to possess with intent to distribute heroin.
On July 25, 2014, SORINA, HARDY, and CARNEY were three of 12 defendants charged in a 23-count indictment. According to court documents, this investigation targeted a heroin trafficking organization operating in New Orleans East. This organization was responsible for distributing at least 15 kilograms of heroin in New Orleans. Agents seized approximately $1,200,000 in assets (a combination of vehicles, currency, jewelry and real property) from members of this drug trafficking organization that were acquired with proceeds made from the sale of heroin.
U.S. District Judge Carl J. Barbier will sentence SORINA, HARDY, and CARNEY on February 19, 2015.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney J. Collin Sims is in charge of the prosecution.
13 November 2014
- “El Gallo” and Others Sentenced
Woodbridge Man Admits Stealing More Than $1 Million from Milford CompanyRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that GIOVANNI MASUCCI, also known as John Masucci, 46, of Woodbridge, pleaded guilty today in Bridgeport federal court to one count of wire fraud related to his theft of more than $1 million from a Connecticut company.
According to court documents and statements made in court, MASUCCI operated a financial consulting business in North Haven. As part of his business, he provided financial consulting services to a company located in Milford and had access to the company’s checkbooks and financial ledgers. From approximately September 2011 to February 2014, MASUCCI defrauded the Milford company by diverting company funds to his own bank account. He also wrote checks from the company’s bank account to pay his personal credit card bills and the credit card bills of a personal acquaintance. As part of the scheme, MASUCCI created false entries in the corporate check ledger that falsely indicated the checks were written for legitimate business purposes, and he typically forged the signature of the authorized company representative on the checks. In order to conceal his crime, MASUCCI took the company’s check book.
The investigation revealed that MASUCCI used the stolen funds to pay for domestic and international travel, lodging, and to make purchases at several high-end retailers.
MASUCCI is scheduled to be sentenced by U.S. District Judge Jeffrey A. Meyer on February 12, 2015, at which time he faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the Connecticut Financial Crimes Task Force, the United States Secret Service and the Greenwich Police Department. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Wheeling Woman Convicted of Cocaine TraffickingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Marisol Rodriguez, 34, of Wheeling, West Virginia, was convicted of distributing crack cocaine, United States Attorney William J. Ihlenfeld, II, announced today.
Rodriguez admitted to selling crack cocaine when she pled guilty to one count of "Conspiracy to Possess with Intent and to Distribute Cocaine Base” after an investigation by the Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative
Assistant U.S. Attorney Randy Bernard is prosecuting the case on behalf of the government.
Senior U.S. District Judge Frederick P. Stamp presided.
Wetlands Determination in Miner County Upheld in District CourtRead the Press Release
United States Attorney Brendan V. Johnson announced that a 2011 wetlands determination made by the United States Department of Agriculture (USDA), Natural Resources Conservation Service (NRCS) was affirmed by U.S. District Judge Karen E. Schreier on October 31, 2014.
In 1985, Congress enacted what are commonly referred to as “Swampbuster” provisions in order to combat the disappearance of wetlands through their conversions into crop lands. The Swampbuster provisions do not make the conversion of wetlands illegal, but provide that agricultural production on a converted wetland would cause a farmer to forfeit eligibility for a number of federal farm-assistance programs.
Under Swampbuster provisions, the NRCS, an agency within the USDA, is charged with determining and certifying wetlands. In order for a site to be classified as a wetland, the NRCS must establish that three criteria have been met: (1) that the land has a predominance of hydric soils; (2) the presence of wetland hydrology (defined as sufficient surface water or groundwater at a frequency and duration sufficient to support a prevalence of hydrophyic vegetation); and (3) that under normal circumstances the land supports a prevalence of hydrophyic vegetation.
In 2013, Arlen and Cindy Foster from Miner County, South Dakota, sued the USDA seeking to overturn a 2011 wetlands determination by the NRCS. The wetland status had been appealed to the National Appeals Division, an agency independent from the USDA, which affirmed the NRCS determination in 2012. The Fosters then filed a lawsuit in District Court challenging the basis for the NRCS's determination of the wetland status as being arbitrary, capricious, or otherwise not in accordance with the law.
The NRCS determined that 0.8 acres of the Fosters’ property was a wetland. The Fosters challenged the NRCS’s use of aerial photography and a wetlands reference site, but the District Court concluded that the NRCS properly followed their established wetlands determination procedures and criteria. Ultimately, the Court held that the agency made a rational connection between the facts and the wetland determination made, and thus, the NRCS did not act arbitrarily or capriciously.
The agency determination was defended by Assistant U.S. Attorney Cheryl Schrempp DuPris and the USDA, Office of the General Counsel.
Virginia Man Indicted for Receiving Reimbursement by Submitting Forged Government ContractsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Southeast Field Office, and Frank Robey, Director, U.S. Army Criminal Investigation Command, Major Procurement Fraud Unit (MPFU), announce that Brian Charles Tolley, 39, of Bedford, Virginia, has been indicted for wire fraud, identity theft, aggravated identity theft, possession of counterfeit government seals, and money laundering.
According to the allegations in the indictment, Tolley was employed by PartsBase, Inc., which is located in Boca Raton, Florida, as Vice President from 2001 through 2001, as Chief Information Office from 2001 through January 2014, and President from 2010 until January 2014. Between June 2007 and September 2013, he submitted to PartsBase forged documentation from various branches of the U.S. military and other government agencies. These documents purported to acknowledge Tolley’s orders of procurement data on PartsBase’s behalf. Tolley then requested reimbursement from PartsBase for charges he had purportedly incurred from the government agencies. In total, PartsBase paid Tolley approximately $1.6 million in fraudulent reimbursements based on this scheme. Tolley used the money, in part, to purchase a 2011 Buick Enclave, a 2011 Lincoln Navigator, and real estate in Bedford, Virginia.
U.S. Attorney Wifredo Ferrer stated “Today’s charges evidence the U.S. Attorney’s Office’s commitment to pursue those who abuse their corporate positions for their own financial gain.”
John F. Khin, Special Agent in Charge, Southeast Field Office, DCIS, stated, “Individuals who commit fraud and deceit undermine the integrity of the Federal procurement process. DCIS will use all available law enforcement resources to bring violators to justice to combat fraud and corruption affecting Defense programs, to include the seizing of personal assets gained through illegal means.”
“We are very gratified to see this indictment and that the allegations against Mr. Tolley will soon be presented in a court of law where a judge and jury can view the evidence,” said Director Frank Robey. “We are confident the hard work of our Army Special Agents, the prosecutor, and our fellow law enforcement officials will pay dividends to the American taxpayer.”
If convicted, Tolley faces maximum statutory sentences of 20 years imprisonment on each count of wire fraud, 15 years imprisonment on each count of identity theft, five years imprisonment on each count of possession of counterfeit government seals, and 10 years imprisonment on each count of money laundering. Tolley faces a mandatory sentence of two years imprisonment on each count of aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the Defense Criminal Investigative Service and the Army Criminal Investigation Command. This case is being prosecuted by Assistant U.S. Attorney Marc Osborne.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
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.
Video Gambling Company Pleads Guilty to Federal Money LaunderingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that Pennsylvania Coin, LLC, a Scranton-based company, pleaded guilty yesterday in U.S. District Court to a charge of conspiracy to commit money laundering. The guilty plea was entered before U.S. District Court Judge Malachy E. Mannion.
Attorneys representing the company put into the record a corporate resolution signed by the members of the corporation, setting out the terms of the plea agreement with the government. The terms include:
- Entry of a plea of guilty;
- Forfeiture of $77,866 and 288 gambling devices to the government;
- Payment of restitution in the amount of $1,050,000 to the U.S. Treasury and payment of $300,000 to the Pennsylvania State Police.
According to United States Attorney Peter Smith and as presented to the Court by Assistant U.S. Attorney Wayne P. Samuelson, the company was charged in a one-count criminal Information filed on October 22, 2014 with conspiracy to commit money laundering between January 2007 and October 2012.
The company maintained and operated approximately 288 video gambling machines throughout Lackawanna, Susquehanna, Wayne and Wyoming Counties. The machines were placed in establishments, including bars, restaurants and clubs. The Pennsylvania State Police (PSP) began an investigation in 2007. PSP undercover agents visited those establishments and placed controlled bets and received payouts from establishment owners, and/or observed patrons receiving payouts after playing the video gaming machines. Agents also observed over 100 machines with switches used to erase accumulated credits from the game played, an indication that the machines were being used for unlawful gambling and not solely for amusement.
The IRS joined the investigation in 2012. Surveillance revealed that supplies of illegal gambling devices were stored in warehouses owned by the defendant.
In October 2012 search warrants were executed by the IRS at three business locations of the company. The Pennsylvania State Police-Bureau of Liquor Control Enforcement searched approximately 180 bars and other non-liquor licensed establishments and seized 288 illegal gambling machines. U.S. currency totaling $77,866.15 was also seized.
Further investigation revealed that the defendant split with the site or establishment owners (approximately 100) the proceeds of the money generated by patrons of the establishments playing the illegal video games. The defendant maintained an account at a financial institution, and comingled the illegal funds with funds generated by the defendant’s legitimate business income-producing machines, such as pool tables and juke boxes. The comingled funds were used to pay employees who collected funds from the site owners and employees who maintained the video gambling devices in working order. A review of the defendant’s bank account showed approximately $1,700,000 was deposited as proceeds from the split of the illegal gambling funds. The co-mingling of the illegal gambling funds through a bank account constituted the violation of the federal money laundering statute.
A plea agreement containing the terms set out in the corporate resolution was filed at the same time the criminal Information was filed.
No sentencing date has been scheduled.
Assistant United States Attorney Wayne P. Samuelson prosecuted the case.
Vascular Solutions Inc. and its CEO Charged with Selling Unapproved Medical Devices and Conspiring to Defraud the United StatesRead the Press Release
UPDATE
The defendants in this case, Howard Root and Vascular Solutions Inc., were acquitted of the charges alleged in the indictment described in the press release below.
An indictment was filed today charging Vascular Solutions Inc. (VSI) and its chief executive officer, Howard Root, with selling medical devices without U.S. Food and Drug Administration (FDA) approval and conspiring to defraud the United States by concealing the illegal sales activity. The announcement was made today by Acting Assistant Attorney General Joyce R. Branda for the U.S. Department of Justice’s Civil Division, U.S. Attorney Robert Pitman for the Western District of Texas and Special Agent in Charge Antoinette V. Henry of the U.S. Food and Drug Administration (FDA)’s Office of Criminal Investigations, Metro Washington Field Office. The devices at issue are from VSI's “Vari-Lase” product line, a system designed to treat varicose veins by burning or “ablating” them with laser energy.
Root and VSI are each charged with one count of conspiracy and eight counts of introducing adulterated and misbranded medical devices into interstate commerce. The case is pending in the U.S. District Court for the Western District of Texas.
“These charges involve a deceptive sales campaign led by the CEO of a public company,” said Acting Assistant Attorney General Branda. “The indictment charges that the sales campaign persisted in the face of FDA warnings, a whistleblower’s complaint to the CEO and a failed clinical trial showing that the device was less safe and less effective than a product that had already been approved. We will take action to hold corporations and their leaders responsible when they violate laws intended to protect public health.”
According to the indictment, the Vari-Lase products were cleared by the FDA only for the treatment of superficial veins, but Root and VSI sold them for the ablation, or removal, of “perforator” veins, which connect the superficial vein system to the deep vein system. Because perforator veins come into direct contact with deep veins, treating them with lasers was a more difficult and risky procedure.
Root is charged with leading the illegal sales campaign, which lasted from 2007 until 2014, and conspiring with others to hide it from the FDA. The indictment alleges that Root authorized the campaign after VSI failed to obtain FDA authorization to sell the Vari-Lase system for ablation of perforator veins. The sales campaign is alleged to have ignored FDA concerns about the safety and effectiveness of the procedure and specific warnings from the FDA not to sell Vari-Lase products for treatment of perforator veins. The indictment alleges that, with Root’s approval, the sales continued even after the company sponsored an unsuccessful clinical trial that showed that the Vari-Lase system was less safe and effective than a competing device that the FDA had cleared for perforator vein treatment. According to the indictment, the sales continued even after a whistleblower complained to Root in 2009 and the government told the company about its investigation in 2011.
The indictment also charges VSI and Root with deceiving the FDA. In late 2007, Root decided to launch a special “Short Kit” designed for perforator vein treatment, despite the lack of FDA marketing authorization, by claiming that the product was intended for “short vein segments” or “short veins.” At the same time, the government alleged that internal company documents approved by Root taught the sales force that these terms included perforator veins and urged salespeople to suggest to health care providers that Vari-Lase devices could be used to treat perforator veins. After learning about the government’s investigation, members of the sales force began using the term “short vein segments” in field trip reports to disguise that they were still selling Vari-Lase devices for perforator vein treatment, according to the indictment. Two other members of the sales force are alleged to have misled investigators; in addition, the indictment charges that one member falsely denied his conduct and another tried to scapegoat a low-level salesman.
In July 2014, VSI agreed to pay $520,000 to resolve allegations that it caused false claims to be submitted to federal health programs by marketing the Vari-Lase devices for treating perforator veins. In that civil action, the government alleged that VSI knowingly caused physicians and other purchasers of the Short Kit to submit false claims to federal health care programs for uses of the Short Kit that were not reimbursable.
“FDA is committed to protecting the public health and the integrity of the regulatory system,” said Special Agent in Charge Henry.
The case is being prosecuted by Trial Attorney Timothy Finley of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Bud Paulissen of the Western District of Texas. The case was investigated by the FDA’s Office of Criminal Investigations and the U.S. Department of Health and Human Services’ Office of the Inspector General.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Vascular Solutions Inc. and Its CEO Charged with Selling Unapproved Medical Devices and Conspiring to Defraud the United StatesRead the Press Release
UPDATE - The defendants in this case, Howard Root and Vascular Solutions Inc., were acquitted of the charges alleged in the indictment described in the press release below.
An indictment was filed today charging Vascular Solutions Inc. (VSI) and its chief executive officer, Howard Root, with selling medical devices without U.S. Food and Drug Administration (FDA) approval and conspiring to defraud the United States by concealing the illegal sales activity. The announcement was made today by Acting Assistant Attorney General Joyce R. Branda for the U.S. Department of Justice’s Civil Division, U.S. Attorney Robert Pitman for the Western District of Texas and Special Agent in Charge Antoinette V. Henry of the U.S. Food and Drug Administration (FDA)’s Office of Criminal Investigations, Metro Washington Field Office. The devices at issue are from VSI's “Vari-Lase” product line, a system designed to treat varicose veins by burning or “ablating” them with laser energy.
Root and VSI are each charged with one count of conspiracy and eight counts of introducing adulterated and misbranded medical devices into interstate commerce. The case is pending in the U.S. District Court for the Western District of Texas.
“These charges involve a deceptive sales campaign led by the CEO of a public company,” said Acting Assistant Attorney General Branda. “The indictment charges that the sales campaign persisted in the face of FDA warnings, a whistleblower’s complaint to the CEO and a failed clinical trial showing that the device was less safe and less effective than a product that had already been approved. We will take action to hold corporations and their leaders responsible when they violate laws intended to protect public health.”
According to the indictment, the Vari-Lase products were cleared by the FDA only for the treatment of superficial veins, but Root and VSI sold them for the ablation, or removal, of “perforator” veins, which connect the superficial vein system to the deep vein system. Because perforator veins come into direct contact with deep veins, treating them with lasers was a more difficult and risky procedure.
Root is charged with leading the illegal sales campaign, which lasted from 2007 until 2014, and conspiring with others to hide it from the FDA. The indictment alleges that Root authorized the campaign after VSI failed to obtain FDA authorization to sell the Vari-Lase system for ablation of perforator veins. The sales campaign is alleged to have ignored FDA concerns about the safety and effectiveness of the procedure and specific warnings from the FDA not to sell Vari-Lase products for treatment of perforator veins. The indictment alleges that, with Root’s approval, the sales continued even after the company sponsored an unsuccessful clinical trial that showed that the Vari-Lase system was less safe and effective than a competing device that the FDA had cleared for perforator vein treatment. According to the indictment, the sales continued even after a whistleblower complained to Root in 2009 and the government told the company about its investigation in 2011.
The indictment also charges VSI and Root with deceiving the FDA. In late 2007, Root decided to launch a special “Short Kit” designed for perforator vein treatment, despite the lack of FDA marketing authorization, by claiming that the product was intended for “short vein segments” or “short veins.” At the same time, the government alleged that internal company documents approved by Root taught the sales force that these terms included perforator veins and urged salespeople to suggest to health care providers that Vari-Lase devices could be used to treat perforator veins. After learning about the government’s investigation, members of the sales force began using the term “short vein segments” in field trip reports to disguise that they were still selling Vari-Lase devices for perforator vein treatment, according to the indictment. Two other members of the sales force are alleged to have misled investigators; in addition, the indictment charges that one member falsely denied his conduct and another tried to scapegoat a low-level salesman.
In July 2014, VSI agreed to pay $520,000 to resolve allegations that it caused false claims to be submitted to federal health programs by marketing the Vari-Lase devices for treating perforator veins. In that civil action, the government alleged that VSI knowingly caused physicians and other purchasers of the Short Kit to submit false claims to federal health care programs for uses of the Short Kit that were not reimbursable.
“FDA is committed to protecting the public health and the integrity of the regulatory system,” said Special Agent in Charge Henry.
The case is being prosecuted by Trial Attorney Timothy Finley of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Bud Paulissen of the Western District of Texas. The case was investigated by the FDA’s Office of Criminal Investigations and the U.S. Department of Health and Human Services’ Office of the Inspector General.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
United States Announces Court Approval of Historic $5.15 Billion Environmental and Tort Settlement with Anadarko Petroleum Corp.Read the Press Release
Additional Payments for Individual Tort Victims
Largest Litigation Recovery for the Clean-Up of Environmental Contamination in Government’s History
Preet Bharara, the United States Attorney for the Southern District of New York, Sam Hirsch, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division (“ENRD”), and Cynthia Giles, Assistant Administrator of the U.S. Environmental Protection Agency, announced today that the United States District Court in Manhattan has approved the historic settlement of fraudulent conveyance claims brought by the United States and co-plaintiff Anadarko Litigation Trust (the “Trust”) against the Kerr-McGee Corporation and certain of its affiliates, including Andarko Petroleum Corporation, in the bankruptcy of Tronox Inc. and its subsidiaries (“Tronox”). Pursuant to the settlement agreement, the defendants must pay $5.15 billion, of which approximately $4.4 billion will be paid to fund environmental clean-up and for environmental claims, plus interest from April 3, 2014. This settlement will result in the largest payment for the clean-up of environmental contamination ever obtained in a lawsuit brought by the Department of Justice.
Manhattan U.S. Attorney Preet Bharara said: “Corporations may not pursue profit at the expense of public health. They may not hide from their responsibilities through corporate shell-games. And they may not rely on bankruptcy to push the cost of their misconduct onto the American taxpayer. This settlement will require the defendants to pay billions to make up for a legacy of environmental contamination and ruination left across the nation. ”
Acting Assistant Attorney General Sam Hirsch said: “The court’s approval of this settlement marks a significant victory for environmental justice by holding Kerr-McGee fully accountable for its attempts to defraud American taxpayers and escape a toxic legacy. Thanks to this settlement, billions of dollars will be made available to clean up contaminated sites across the United States.”
EPA Assistant Administrator Cynthia Giles said: “At EPA, we stand by the principle that if you make a mess, you clean it up. This decision means that soon more than $4 billion will be put to work in American communities, cleaning up water supplies and removing dangerous contamination.”
Settlement Approval
On April 3, 2014, the United States announced this settlement, which was then subject to a period of public comment and judicial approval. After receiving and considering comments from the public, the United States sought approval of the settlement agreement. On May 30, 2014, the United States Bankruptcy Court issued a decision recommending that the District Court approve the settlement. Now, the District Court has followed the Bankruptcy Court’s recommendation and approved the agreement.
In her decision, United States District Judge Katherine B. Forrest recognized that this case arises from a “series of transactions [by the Kerr-McGee Corporation] that resulted in the spin-off of Tronox, which Kerr-McGee left saddled with the massive environmental and tort liabilities it had accumulated over the course of decades of operating in the chemical, mining, and oil and gas industries, but without sufficient assets with which to address these liabilities.” For this reason, as the District Court explained, both the United States and the Tronox estate (now represented by the Trust) brought fraudulent conveyance claims against the defendants, which the settlement resolves.
In approving the settlement, the District Court concluded:
- “The settlement is historic” and provides the “largest [clean-up] recovery in American history.”
- “The Settlement Agreement promotes federal environmental law’s objectives of ‘encourag[ing] prompt and effective responses to hazardous waste releases,’ ‘impos[ing] liability on responsible parties,’ and ‘reduc[ing] the inefficient expenditure of public funds on lengthy litigation.’”
- The settlement is a “fair and reasonable” consent decree resolving the Government’s claims against the defendants.
The District Court issued its opinion on Monday, November 10, 2014.
The District Court’s approval is subject to appeal. If no timely appeal (or other further review specified in the settlement agreement) is filed, the settlement will go into effect. Two days later, the defendants’ payment will be due.
Mr. Bharara again thanked the many federal, state, and tribal officials who worked tirelessly on this matter, as well as the Trust, its trustee, and its counsel, for their critical work on this case.
This case was handled by the Environmental Protection Unit and the Tax and Bankruptcy Unit of SDNY’s Civil Division. Assistant U.S. Attorney Robert William Yalen is in charge of the case, which he handled along with Assistant U.S. Attorney Joseph Pantoja and Alan S. Tenenbaum, Katherine Kane, Frederick S. Phillips, Marcello Mollo, and Erica Pencak of ENRD.
Tronox Approval
Two Sentenced for Roles in Bribery and Money Laundering Scheme Involving Former Ohio Deputy TreasurerRead the Press Release
A former lobbyist and a former securities broker have been sentenced for their roles in a bribery and money laundering scheme involving the Ohio Treasurer’s Office.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Mark T. D’Alessandro of the Southern District of Ohio, Special Agent in Charge Kevin R. Cornelius of the FBI’s Cincinnati Division and Ohio Attorney General Mike DeWine made the announcement after sentencing by U.S. District Judge Michael H. Watson of the Southern District of Ohio.
Douglas E. Hampton, 40, of Uniontown, Ohio, was sentenced today to serve 45 months in prison and ordered to forfeit $2,202,259. Mohammed Noure Alo, 35, of Columbus, Ohio, was sentenced yesterday to serve 48 months in prison and ordered to forfeit $123,622. Last year, Alo pleaded guilty to aiding and abetting honest services wire fraud, and Hampton pleaded guilty to conspiracy to commit honest services wire fraud, federal program bribery and money laundering. The former Deputy Treasurer for Ohio, Amer Ahmad, fled after pleading guilty to federal program bribery and conspiracy to commit honest services wire fraud, federal program bribery, and money laundering, and is currently in Pakistani custody pending an extradition request from the United States government.
Joseph Chiavaroli, 34, of Chicago, pleaded guilty to money laundering and is scheduled for sentencing on Dec. 1, 2014.
According to the defendants’ admissions in connection with their guilty pleas, from approximately January 2009 through January 2011, Ahmad, Alo, Hampton and Chiavaroli conspired to use Ahmad’s position as deputy treasurer to direct official state of Ohio business to Hampton in return for bribes from Hampton. Ahmad and Chiavaroli concealed the payments received from Hampton by passing them through the accounts of their landscaping business. Hampton also funneled more than $123,000 to Alo, an attorney and lobbyist who was Ahmad’s close personal friend and business associate. During the course of the scheme, Hampton paid in excess of $500,000 in bribes, and received, in exchange, approximately $3.2 million in commissions for 360 securities trades on behalf of the Ohio Treasurer’s Office.
The case was investigated by the FBI’s Central Ohio Public Corruption Task Force, which includes special agents from the FBI and the Ohio Bureau of Criminal Investigation. The case is being prosecuted by Trial Attorneys Eric L. Gibson and Menaka Kalaskar of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Douglas W. Squires of the Southern District of Ohio.
Two Sentenced for Distributing Heroin Near Local SchoolRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Marcel D. Weaver, 30, of East Liverpool, Ohio, and Holly D. Keyes, 26, of Chester, West Virginia, were sentenced for distributing heroin near a local elementary school, United States Attorney William J. Ihlenfeld, II, announced today.
An investigation by the Hancock, Brooke, and Weirton Drug and Violent Crime Task Force, a HIDTA-funded initiative, revealed that Weaver and Keyes sold heroin near Allison Elementary School in Chester, West Virginia. They each pled guilty in June 2014 to one count of "Aiding and Abetting the Distribution of Heroin Within 1,000 Feet of a protected Location."
Weaver was sentenced to 51 months in prison. Keyes was sentenced to 21months in prison.
Assistant U.S. Steve Vogrin prosecuted the cases on behalf of the government.
Chief U.S. District Judge John Preston Bailey presided.
Two Charlotte Men Plead Guilty to Selling Misbranded DrugsRead the Press Release
The Defendants Falsely Claimed on Company Websites the Drugs Were Sold for “Research Purposes” Only
CHARLOTTE, N.C. – Joseph Marsala, 35, and Brent Bumgarner, 33, both of Charlotte, appeared before U.S. Magistrate Judge David S. Cayer today and pleaded guilty to selling misbranded drugs, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. A criminal bill of information charging the two men with one count of introducing and distributing misbranded drugs into interstate commerce and aiding and abetting was filed on October 28, 2014.
David W. Bourne, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), Miami Field Office and Thomas L. Noyes, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service, join U.S. Attorney Tompkins in making today’s announcement.
According to filed court documents and today’s plea hearing, from 2010 to January 2014, the defendants owned and operated two companies, first “Osta-Gain” and later “Spectrum Peptides,” through which they illegally distributed drugs, including “peptides,” and compounds containing the active ingredients of FDA-approved prescription drugs to customers, primarily bodybuilders, for human consumption. Court records indicate that there is an illegal market for peptides, prescription drugs, and compounds containing the active ingredients of FDA-approved prescription drugs among bodybuilders and weight lifters, since it is believed that these substances enhance muscle development. The FDA regulates these products as drugs when they are marketed for human use. According to court records, to avoid detection by the FDA, the defendants made numerous false representations on their companies’ websites, www.osta-gain.com and www.spectrumpeptide.com, claiming that, “ALL products and services offered are for RESEARCH purposes ONLY.” In reality, court records indicate, the products the defendants sold were intended for human consumption, by individuals seeking to build body mass and to counter the side effects of such muscle building drugs. In addition to the illegal drugs, Marsala and Bumgarner also sold the necessary “laboratory supplies” (e.g., pipettes) for bodybuilders to administer the products and distributed dosing information to consumers, court records show.
In connection with today’s guilty plea, the court was also advised that even though the defendants claimed the products sold on their websites were for research purposes only, Marsala and Bumgarner held promotional events such as Black Friday sales, Christmas sales, and free T-shirt promotions. The defendants also specifically targeted the bodybuilding community by advertising on websites catering to bodybuilders. According to filed court documents, in April 2013 Osta-Gain was named in a national newspaper article about the illegal marketing of research chemicals to bodybuilders. As a result of that article, the defendants shut down the Osta-Gain website, created Spectrum Peptides and began selling identical products through the new company’s website. During the relevant time period, Marsala and Bumgarner advertised and sold through the two websites approximately $800,000 of misbranded drugs to customers across the United States.
During the course of the investigation, law enforcement agents seized approximately $34,012.43 in funds. Marsala and Bumgarner have agreed to forfeit these assets as part of their plea agreement and to pay full restitution, the amount of which will be determined by the Court at sentencing.
The defendants have been released on bond. The penalty for introducing misbranded drugs into interstate commerce and aiding and abetting carries a maximum prison term of three years and a $10,000. A sentencing date has not been set yet.
The investigation was conducted by FDA-OCI and USPIS. The prosecution is handled by Assistant U.S. Attorney Kelli Ferry of the U.S. Attorney’s Office in Charlotte.
The FDA has made available a consumer-friendly form for reporting to the agency adverse events and other serious safety problems with FDA-regulated products, including products catering to bodybuilders for the increase of muscle mass. That form is available at http://www.fda.gov/ForConsumers/ConsumerUpdates/ucm354560.htm.
Two Charged in Superseding Bill of Information for Violations of the Lacey ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that HON KIT LAU, age 34, from Hong Kong, and LAWRENCE TREIGLE, age 44, from Covington, Louisiana, were charged today in a one-count superseding bill of information with conspiring to smuggle a threatened species of turtles out of the United States and in violation of the Lacey Act.
According to the superseding bill of information, LAU and TREIGLE were part of a group of individuals involved in capturing North American Wood turtles from the wild in Pennsylvania, shipping the turtles by mail though the United States, and then illegally exporting the turtles to Hong Kong.
If convicted, LAU and TREIGLE, face a maximum term of five years in prison, a fine of $250,000, and three years of supervised release following any term of imprisonment.
U.S. Attorney Polite reiterated that the superseding bill of information is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the U.S. Fish and Wildlife Service, Homeland Security Investigations, and the United States Postal Inspection Service in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
(Download Superseding Bill of Information )
Tulsa Man Pleads Guilty to Aiming A Laser Pointer Multiple Times in the Flight Path of A Tulsa Police Department HelicopterRead the Press Release
TULSA, Okla. — A Tulsa man pleaded guilty today before United States District Court Judge Claire V. Eagan to aiming the beam of a laser pointer in the flight path of a Tulsa Police Department helicopter, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
At the change of plea hearing, Carl Don Floyd, 43, of Tulsa, admitted that on February 15, 2014, he aimed a laser pointer three times in the flight path of a Tulsa Police Department helicopter that was travelling near his residence. Floyd was charged by a grand jury on March 5, 2014.
According to court documents, the first laser struck the front-left side of the aircraft. As the crew flew the helicopter towards the source of the laser a second laser struck an officer in both eyes. After the third laser strike, the crew was able to determine the source location. As a result of the laser strikes, the flight officer experienced flash blindness.
Sentencing is scheduled on February 20, 2015. Floyd faces the statutory maximum penalty of five years in prison and a fine up to $250,000.
In February 2012, President Obama signed into law a statute making it a federal crime to knowingly aim the beam of a laser pointer at or in the flight path of an aircraft. According to the Federal Aviation Administration, there were 3,960 reports of laser strikes in the United States in 2013.
Floyd was charged with the crime following a joint investigation conducted by the Tulsa Police Department and Federal Bureau of Investigation. Assistant United States Attorney Joel-lyn A. McCormick prosecuted the case on behalf of the United States.
U.S. v. Carl Don Floyd
Three Brothers Convicted of 1994 MurderRead the Press Release
Earlier today, following three weeks of trial, a federal jury in Brooklyn, New York, returned guilty verdicts against Brian Gill, David Gill and Samuel McIntosh for their participation in the drug-related murder of Michael Dawson on June 22, 1994. Brian Gill and David Gill were also convicted of a narcotics trafficking conspiracy between 2011 and 2013. The charges arose out of the defendants’ long-time control of a drug trafficking organization that operated in the Park Hill housing complex in the Clifton neighborhood of Staten Island. When sentenced by United States Chief District Judge Carol B. Amon, Brian Gill faces a mandatory minimum sentence of life imprisonment; David Gill and Samuel McIntosh each face a mandatory minimum sentence of 20 years’ imprisonment and a maximum sentence of life imprisonment.
The verdicts were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“For years, these defendants made drug dealing and violence a daily reality for the law-abiding residents of Park Hill,” stated United States Attorney Lynch. “Today, these three men have been held accountable for the lives they have destroyed and the harm they have done to one of our communities. As a result of the extraordinary efforts of law enforcement, Park Hill is a safer place.” Ms. Lynch extended her grateful appreciation to the FBI, New York City Police Department, and the Richmond County District Attorney for their outstanding assistance in this case.
Over the course of two decades, the defendants intermittently operated a lucrative drug distribution business in Park Hill, Staten Island. On June 22, 1994, in connection with that business and in retaliation for selling crack cocaine on the defendants’ turf, the defendants brazenly murdered Michael Dawson in broad daylight in the street outside of 160 Park Hill Avenue, a profitable building for crack dealing in Park Hill. Shortly thereafter, Brian Gill fled Staten Island. In 2011, when Brian Gill returned to Park Hill after 17 years away, he launched another crack dealing business in Park Hill from his residence at 160 Park Hill Avenue. David Gill participated in and helped Brian Gill with that business.
The convictions of these defendants are the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of violent narcotics trafficking organizations operating in Brooklyn and Staten Island. This year alone, in five separate trials, this Office has obtained trial convictions for seven defendants for carrying out ten different murders.
The government’s case is being prosecuted by Assistant United States Attorneys Nadia Shihata and Alicyn Cooley.
The Defendants:
BRIAN GILL
Age: 46 years
Staten Island, New York
DAVID GILL
Age: 43 years
Staten Island, New York
SAMUEL MCINTOSH
Age: 40 years
Staten Island, New York
E.D.N.Y. Docket No. 13-CR-487
Three Alleged Gang Members Charged with July 2014 MurderRead the Press Release
SAN FRANCISCO – Miguel Ortiz, Antonio Castillo, and Marvin Cortez were arraigned in federal court this morning after being arrested yesterday on charges that included racketeering conspiracy, firearms violations, and the commission of a July 19, 2014, gang-related murder in San Francisco, announced United States Attorney Melinda Haag, Tatum King, Acting Special Agent in Charge for U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations (HSI) San Francisco, and Police Chief Gregory P. Suhr of the San Francisco Police Department.
These charges were part of a superseding indictment returned by a federal grand jury on Nov. 6, 2014, which the court unsealed earlier today.
According to the superseding indictment, Ortiz, 27, of San Francisco, Castillo, 26, of San Bruno, and Cortez, 24, of San Francisco, conspired to conduct the affairs of the 19th Street Sureños street gang through a pattern of racketeering activity that included murder, drug trafficking, witness tampering and obstruction of justice. The 19th Street Sureños is a Hispanic street gang that claimed part of the Mission District of San Francisco as its territory. As a Sureño gang, the 19th Street Sureños warred against rival gangs, notably the various Norteño gangs in San Francisco.
In addition to conspiring to conduct the affairs of the 19th Street Sureños, all three defendants are also charged with conspiring to commit murder in aid of racketeering; conspiring to commit assault with a dangerous weapon in aid of racketeering; committing a gang-related murder on July 19, 2014; possessing, carrying, and using a firearm in furtherance of or during and in relation to a crime of violence; and using a firearm in furtherance of a crime of violence resulting in murder.
The superseding indictment also sets forth the various racketeering and firearms charges, originally returned by the grand jury on March 6, 2014, against fourteen other members of the 19th Street Sureños criminal enterprise.
The investigation of Ortiz, Castillo, and Cortez involved officers and agents from the San Francisco Police Department (SFPD) Homicide Detail, the SFPD Gang Task Force, and the Department of Homeland Security, Homeland Security Investigations.
Ortiz, Castillo and Cortez and made their initial appearances before the Honorable Jacqueline Scott Corley, United States Magistrate Court Judge, today. All three are currently in custody pending a detention hearing. They are scheduled to appear for an ID of Counsel hearing before the Honorable Jacqueline S. Corley, United States Magistrate Court Judge, on Nov. 20, 2014.
The maximum statutory penalty for each of the charged offenses is:
- racketeering conspiracy, in violation of Title 18, United States Code, Section 1962(d): life imprisonment, five years of supervised release, a fine of $250,000; and restitution, if appropriate;
- murder in aid of racketeering, in violation of Title 18, United States Code, Section 1959(a)(1): death or life imprisonment; a fine of $250,000; and restitution if appropriate;
- possessing, carrying and using a firearm in furtherance of, or during and in relation to, a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A): life imprisonment; five years of supervised release; a fine of $250,000;
- possessing, carrying and using a firearm in furtherance of, or during and in relation to, a crime of violence, resulting in murder, in violation of Title 18, United States Code, Section 924(j)(1): death or life imprisonment; a fine of $250,000; and restitution if appropriate;
- conspiracy to commit murder in aid of racketeering, in violation of Title 18, United States Code, Section 1959(a)(5): 10 years imprisonment; three years of supervised release; a fine of $250,000; and restitution if appropriate;
- conspiracy to commit assault with a deadly weapon in aid of racketeering, in violation of Title 18, United States Code, Section 1959(a)(6): 3 years imprisonment; one year of supervised release; a fine of $250,000; and restitution if appropriate;
However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Andrew M. Scoble, Kimberly Hopkins, and Laurie K. Gray are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Christine Tian and Ponly Tu. The prosecution is the result of an investigation by HSI and the SFPD.
Please note, an indictment contains only allegations and, as with all defendants, Miguel Ortiz, Antonio Castillo, and Marvin Cortez must be presumed innocent unless and until proven guilty.
(19th Sureños superseding indictment )
Texas Man Arrested in Thomas County Sentenced on Federal Drug ChargeRead the Press Release
WICHITA, KAN. - A Texas man was sentenced Wednesday to 75 months in federal prison for drug trafficking, U.S. Attorney Barry Grissom said.
Felipe Balleza, 49, Dallas, Texas, pleaded guilty to one count of possession with intent to distribute methamphetamine. In his plea, he admitted the Kansas Highway Patrol stopped him Oct. 28, 2013, in Thomas County, Kan. Investigators found 4.9 pounds of methamphetamine hidden in the dash behind the glove compartment of the 2005 Dodge Ram Balleza was driving.
Co-defendant Alberto Vergara-Manzo of Lynwood, Calif.,was sentenced to 108 months.
Grissom commended the Kansas Highway Patrol, the Drug Enforcement Administration and Special Assistant U.S. Attorney Michelle Jacobs for their work on the case.
Smith County Bank Officer Sentenced for Embezzling FundsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas - A 59-year-old Lindale, Texas woman has been sentenced to federal prison for embezzling bank funds in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Mary Jane Haxton pleaded guilty on July 18, 2014, to misapplication of funds by a bank employee and was sentenced to 30 months in federal prison by U.S. District Judge Leonard Davis on Nov. 12, 2014. Haxton was also ordered to pay restitution in the amount of $446,344.66.
According to information presented in court, Haxton worked as a cashier at Lindale State Bank from 1984 until early 2014. In 2004, Haxton began embezzling funds totaling $445,940.66 by misapplying the funds to personal accounts which she owned or controlled. In December 2013, Lindale State Bank merged with Texas Bank and Trust and became an official branch of Texas Bank and Trust. After the merger, the accounting department was in the process of reconciling accounts and discovered the funds had been misapplied.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Jim Noble.
Shreveport Man Sentenced to 60 Months in Prison for Failing to Update his Sex Offender RegistrationRead the Press Release
SHREVEPORT, La. –United StatesAttorney Stephanie A. Finley announced that a Shreveport man was sentenced on Wednesday to 60 months in prison for failing to update his sex offender registration.
Michael Thomas Cupp, 60, of Shreveport, was sentenced by U.S. District Judge S. Maurice Hicks, for one count of failure to update his sex offender registration. He was also sentenced to 10 years of supervised release. According to evidence presented at the July 28 2014 guilty plea, starting in April 2009, Cupp listed his sex offender registration as being in Texas. However, upon investigation, it was determined that Cupp had never lived in Texas. Cupp was originally convicted of forcible rape, incest, carnal knowledge of a juvenile and indecent behavior with a juvenile in state district court in Baton Rouge in 1992. After completion of his prison sentence, he began living in Shreveport in 1998. Cupp then registered his address in Panola County (Texas) with the Sheriff’s Office in April of 2009, but after a compliance check of sex offenders in 2012, he was found to have been living and working continuously in Shreveport.The U.S. Marshal’s Service, Panola County Sheriff’s Office in Texas, and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Allison D. Bushnell prosecuted the case.
Seven Sentenced for Involvement in Aryan Brotherhood of Texas Racketeering ConspiracyRead the Press Release
Seven Aryan Brotherhood of Texas (ABT) gang members from Houston and Dallas were sentenced to prison this week for their roles in the violent ABT enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Today, Stephen Tobin Mullen, 45, of Dallas, and James Erik Sharron, 40, of Houston, were sentenced to respective terms of 156 months and 72 months in federal prison by U.S. District Judge Sim Lake in the Southern District of Texas. Yesterday, Larry Max Bryan, 52, of Houston, and Terry Ross Blake, 56, of Corpus Christi, both high-ranking leaders of the ABT, were sentenced to 300 months and 180 months in federal prison, respectively. Jamie Grant Loveall, 38, of Houston; Kelly Ray Elley, 37, of Houston; and Ronald Lee Prince, 44, of Dallas, were also sentenced to respective terms of 390 months, 270 months and 120 months in federal prison.
According to information presented in court, the seven defendants were admitted members of ABT, a powerful race-based, statewide organization that operates inside and outside of state and federal prisons throughout Texas and the United States. Along with other ABT gang members and associates, they agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang.
The ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. Previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism, but over time, the ABT has expanded its criminal enterprise to include illegal activities for profit, according to court records.
In order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, arson, assault, robbery and threats against those who violated the rules or posed a threat to the enterprise. ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things. Members were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
The defendants sentenced this week are seven of 36 defendants convicted of conducting racketeering activity through the ABT criminal enterprise, among other charges.
This Organized Crime Drug Enforcement Task Force case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement, Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite, Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.
The case is being prosecuted by David Karpel of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Ed Gallagher and Tim Braley of the Southern District of Texas.
- Seven More Sentenced for Involvement in Aryan Brotherhood of Texas Racketeering Conspiracyl Gallo” and Others Sentenced
Sentencings for November 7 - November 12, 2014Read the Press Release
Zachary G. Knigge, 23, of Casper, Wyoming, was sentenced by Chief Federal District Court Nancy D. Freudenthal on November 12, 2014, for unlawful user of a controlled substance in possession of a firearm. Knigge was arrested in Casper, Wyoming. He received 24 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Mario Alberto Ramirez-Contreras, 41, of Rock Springs, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on November 12, 2014, for possession of child pornography. Ramirez-Contreras was arrested in Rock Springs, Wyoming. He received 24 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
James L. Brown, 51, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 7, 2014, for conspiracy to possess with intent to distribute, and to distribute at least 500 grams of a mixture or substance containing a detectable amount of methamphetamine. Brown was arrested in Casper, Wyoming. He received 130 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Daphne C. Watkins, 53, of Bowden, West Virginia, was sentenced by Federal District Court Scott W. Skavdahl on November 7, 2014, for possession with intent to distribute approximately 118 kilograms of marijuana and aiding and abetting. Watkins was arrested in Yellowstone National Park. She received 60 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the National Park Service and the U.S. Drug Enforcement Administration.
Seffner Man Sentenced to More Than 15 Years for Unlawfully Possessing A Firearm and AmmunitionRead the Press Release
Tampa, FL – U.S. District Judge Virginia M. Hernandez Covington has sentenced Shon Erik Scott (29, Seffner) to 15 years and 8 months in federal prison for being a felon in possession of a firearm and ammunition. Scott pleaded guilty on June 10, 2014.
According to court documents, on October 12, 2013, officers from the Tampa Police Department arrested Scott at an apartment complex in Tampa. During their encounter, Scott resisted arrest and threw a loaded firearm that had been concealed in his waistband. Incident to his arrest, a distribution amount of 3,4-Methylenedioxymethcathinone, a controlled substance, was found in his possession. At the time, Scott was a previously convicted felon, and was therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Joseph W. Swanson.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with ATF Special Agent in Charge Regina Lombardo, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy to prevent violent crime in communities.
San Diego Man Who Ran Scam That Offered Investments in ‘Reverse Life Insurance’ Policies Convicted of Federal Fraud ChargesRead the Press Release
SANTA ANA, California – The founder and chief executive officer of a firm that solicited more than $5 million from victims who thought they were investing in “reverse life insurance” policies has been found guilty of federal fraud charges.
Daniel Christian Stanley Powell, 33, of San Diego, was convicted Monday afternoon of five counts of mail fraud and five counts of wire fraud, as well as three counts of obstruction of justice. The verdicts followed a three-week trial and prompted United States District Judge Josephine L. Staton to remand Powell into custody pending sentencing.
According to the evidence presented at trial, Powell told investors in Christian Stanley that he would use their money to purchase life insurance policies from insured individuals, at which point the company would pay the monthly premiums and become the beneficiaries to the policies. Powell claimed that Christian Stanley would profit by collecting the death benefits when the insureds died or by selling the policies on the life settlement market. Powell, who started the Los Angeles-based Christian Stanley, Inc., trademarked the term “reverse life insurance” and sought to take his company public by filing documents with the Securities and Exchange Commission.
Powell, who also told some victims that their money would be invested in gold mines, claimed that investments were safe because his company already owned $1.9 billion in reverse life insurance policies in a mutual fund. Contrary to his promises, however, the evidence demonstrated that Christian Stanley did not own any life insurance policies or any working mines and had earned only $31,250 in revenue since its inception.
In total, approximately 50 victims invested a total of approximately $5.2 million. The victims, who were located throughout the United States, invested directly through Powell, other representatives of Christian Stanley, or their own financial advisors. Victims lost approximately $4 million as a result of the scheme, which included funds that had been invested through individual retirement accounts.
Powell used victims’ money to make Ponzi-scheme payments to some investors, to pay commissions to representatives who recruited investors, and to create promotional materials, which gave the appearance that Christian Stanley was a legitimate and successful business. Powell also spent victims’ funds on a luxury apartment on the west side of Los Angeles, Ferrari and Porsche automobiles, and a $35,000 donation to Usher’s New Look foundation, which got him a photograph with former President Bill Clinton that was used as part of Christian Stanley’s promotional materials.
On September 2, 2011, the U.S. Securities and Exchange Commission filed a civil complaint against Powell and Christian Stanley (Securities and Exchange Commission v. Christian Stanley, Inc., et al., CV11-7147-GHK). The evidence at the criminal trial showed that Powell knowingly drafted false affidavits to use in his defense to the SEC case and that he lied to the victims about his assets and promised to return their money if they signed the false affidavits. This criminal conduct led to the convictions on the obstruction of justice charges.
Powell is scheduled to be sentenced by Judge Staton on March 13, 2015, at which time the defendant will face a statutory maximum sentence of 260 years in federal prison.
The case against Powell is the result of an investigation by the Federal Bureau of Investigation.
Release No. 14-150