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Monday 29 September 2014
Criminal Street Gang Member Sentenced to 262 Months for Sex Trafficking of ChildrenRead the Press Release
DALLAS — A documented member of the 59 Bounty Hunter Bloods criminal street gang in Dallas, Keith Williams, a/k/a “Chucky Blood,” was sentenced this morning by U.S. District Judge David C. Godbey to 262 months in federal prison. Williams, 25, pleaded guilty in February 2014 to one count of sex trafficking of children. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas, made the announcement today.
Williams’ girlfriend, Erin Patton, also 24, was sentenced in August 2014 to 87 months in federal prison by Judge Godbey. She pleaded guilty in May 2014 to one count of conspiracy to commit sex trafficking of children.
According to documents filed in the case, in September 2012, after she ran away from home, 14-year-old “Jane Doe” met Erin Patton. Patton let Jane Doe stay with her, and Patton facilitated Jane Doe’s engaging in commercial sex acts by driving her to locations where the acts occurred and providing her a cell phone so she could post her services on “Mocospace” and Backpage.com. Jane Doe gave Patton a portion of the money she earned from engaging in the sex acts.
Again, in November 2012, after she again ran away from home, Jane Doe contacted Patton. This time, both Patton and Williams picked up Jane Doe and posted her availability to engage in commercial sex acts on Backpage.com. While Williams went to serve a jail sentence shortly thereafter, Patton continued facilitating Jane Doe’s commercial sex acts. Jane Doe eventually left.
In April 2013, Jane Doe again contacted Patton and told her she was still in school, but wanted to leave and wanted Patton to pick her up. Patton and Williams agreed to let Jane Doe stay with them, but they told her she was going to have to engage in commercial sex acts, as she had done in the past, to pay for her expenses. Williams and/or Patton drove Jane Doe to meet with customers and Jane Doe gave all the money she earned to Williams and Patton. Williams also had sex with Jane Doe.
On May 4, 2013, officers with the Dallas Police Department (DPD) encountered now 15-year-old Jane Doe, in a car parked in an area known for prostitution. Williams came by shortly thereafter. He admitted knowing she was 15, driving her to meet with customers, and to keeping the proceeds from her “dates.”
The Dallas Police Department’s Gang Unit and Child Exploitation Squad investigated the case in conjunction with the FBI. Assistant U.S. Attorney Cara Foos Pierce prosecuted.
Conspirator Sentenced to over Four Years in Prison for Bank Fraud SchemesRead the Press Release
Stole Checks from Mailboxes
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Paul Essel, age 27, of Laurel, Maryland, today to 57 months in prison, followed by four years of supervised release, for conspiring to commit bank fraud, bank fraud and aggravated identity theft in connection with two bank fraud schemes. Judge Grimm also ordered Essel to pay forfeiture and restitution of $418,435.48.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury Office of Inspector General; and Special Agent in Charge Kathy A. Michalko of the United States Secret Service – Washington Field Office.
“Stealing mail to commit identity theft and fraud not only jeopardizes people’s trust in the U.S. postal system, it threatens the overall financial health of our communities,” said Postal Inspector in Charge Gary Barksdale, U.S. Postal Inspection Service - Washington Division. “Today’s sentencing confirms that anyone using the U.S. Mail for criminal activity will be brought to justice and held accountable.”
According to his plea agreement, from June 14, 2010 to March 11, 2013, Essel and co-defendant Nelly Dadson opened bank accounts in their own names and in the names of shell corporations that they controlled. Essel and others used counterfeit checks that resembled convenience checks that had been stolen from mailboxes in Montgomery and Prince George’s Counties. The counterfeit checks contained names, addresses and account information that appeared on the convenience checks. Essel deposited these counterfeit checks into accounts controlled by the conspirators and then withdrew funds from the accounts. Essel also provided checks to Dadson with instructions to deposit these counterfeit checks into accounts that she controlled, withdraw the funds and provide the funds to Essel, for which Essel paid Dadson.
In addition, from June 14, 2010 to November 13, 2012, Essel and Dadson conspired to defraud Home Depot. On multiple occasions, a conspirator placed an order by phone with a Home Depot store for flooring in amounts ranging from $2,500 to $8,000, using a stolen credit card number. Within a few days, a conspirator called to cancel the order and supplied a debit card number of a conspirator, including Essel and Dadson, requesting that the refund for the order be placed on the conspirator’s debit card. At Essel’s request, Dadson received 38 credits to her bank accounts totaling approximately $141,159.07, which she then withdrew and provided to Essel. Essel paid Dadson $600 to $800 per transaction. Essel also received at least three credits to his bank accounts totaling approximately $8,902.96, which he withdrew.
The total loss caused by Essel’s conduct is between $400,000 and $1 million, and involved between 10 and 50 victims.
Nelly Dadson, age 24, of Baltimore, previously pleaded guilty to her participation in the schemes and was sentenced to four years in prison, for conspiring to commit bank fraud and aggravated identity theft. Judge Grimm also ordered Dadson to forfeit and pay restitution of at least $251,745.52.
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 thanked the U.S. Postal Inspection Service, U.S. Department of Treasury – Office of Inspector General and U.S. Secret Service for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Bryan Foreman, who prosecuted the case.
Chief of Police Sentenced for Color of Law ViolationRead the Press Release
OXFORD: Felicia C. Adams, United States Attorney for the Northern District of Mississippi, and Johnnie Sharp, Acting, Special Agent in Charge (SAC), Federal Bureau of Investigation (FBI), announced today that Jimmie Johnson, age 31, former Tutwiler, Mississippi, Police Officer and former Chief of Police of Webb, Mississippi, was sentenced by Chief U. S. District Judge Sharion Aycock to serve twenty (20) months in prison, followed by two (2) years of supervised release, after pleading guilty of violating a federal civil rights statute. Johnson was also ordered to complete fifty (50) hours of community service. In addition, Johnson agreed to never seek future employment in law enforcement.
Johnson was indicted on October 31, 2013, for an incident which occurred in February of 2012, while he was employed as a captain with the Tutwiler, Mississippi, Police Department. On March 25, 2014, Johnson pled guilty to Count One of the indictment, which stated that while acting under color of law, Johnson assaulted an individual by striking him in the face with his fist, causing bodily injury, and thereby willfully depriving that individual of the right to be free from the use of unreasonable force by a law enforcement officer, in violation of Title 18, United States Code, Section 242.
U.S. Attorney Felicia C. Adams stated, “Johnson’s actions were reprehensible. He abused his authority, violated the law and the public trust. Today’s sentence demonstrates that such actions undermine the rule of law and will not be tolerated. While the majority of law enforcement officers are hardworking professionals who risk their lives daily for our safety, the U.S. Attorney’s Office is committed to aggressively prosecuting those officers who break the law and violate the public trust.”
A/SAC Sharp stated: “Every citizen has the right to expect law enforcement officers to act in accordance with the laws they have sworn to uphold. We entrust law enforcement officers with certain powers and authority, which they are expected to wield with the utmost integrity. This case proves that abuse of that power and authority will not be tolerated.”This case was investigated by the Federal Bureau of Investigation, with assistance from the Tallahatchie County Sheriff’s Office, and prosecuted by the United States Attorney’s Office for the Northern District of Mississippi.
Chicago Taxicab Operator Indicted and Arrested for Allegedly Conspiring to Falsify Titles of Salvaged and Rebuilt TaxisRead the Press Release
CHICAGO ― A Chicago used car broker and taxicab operator was arrested today after being indicted on federal charges for allegedly causing at least 180 vehicles that were salvaged or rebuilt to illegally obtain clean titles from Indiana and Illinois and, as a result, to illegally operate as licensed and registered taxicabs in the City of Chicago.
The defendant, ALEXANDER IGOLNIKOV, 67, of Northbrook, was charged with one count of conspiracy and two counts each of interstate transportation of false automobile titles and possession of false auto titles in a five-count indictment that was returned by a federal grand jury on Aug. 27 and unsealed today following his arrest.
Ignolikov was scheduled to appear at 3 p.m. today before U.S. Magistrate Judge Jeffrey T. Gilbert in Courtroom 1386 in U.S. District Court.
Igolnikov, also known as “Alexandr Igolnikov” and “Alex,” was the owner of Seven Amigos Used Cars and vice president of Chicago Elite Cab Corp., which operated taxis under city taxi medallions managed by Chicago Elite Cab and related entities affiliated with Chicago Carriage Taxi Company. City taxi medallion rules prohibit any vehicle that was ever issued a “salvage” or “rebuilt” title in any state from being used as a taxicab in Chicago.
The indictment alleges that between 2007 and April 2010 Ignolikov conspired with three unnamed auto brokers, two in Indiana and one in Illinois, to purchase vehicles with salvage titles from online auction sites; fraudulently obtain either clean or rebuilt Indiana titles for those vehicles by submitting false paperwork to the Indiana Bureau of Motor Vehicles; and then using those re-issued Indiana titles to obtain clean Illinois titles, concealing that the vehicles were previously issued salvage or rebuilt titles.
According to the indictment, in many instances, Ignolikov agreed with three auto brokers to have the damaged vehicles towed from the online auctions sites’ yards in out-of-state locations to the premises of Seven Amigos and Chicago Carriage near 26th Street and South Wabash Avenue in Chicago, where the vehicles would be repaired.
In addition to submitting false paperwork concealing the vehicles’ history and damage to Indiana authorities, Ignolikov and the brokers also submitted a false affidavit certifying that an Indiana law enforcement officer had personally examined the vehicles and verified certain identifying information, the charges allege. In reality, no officer had examined the vehicle and the affidavit of a police officer was signed by unnamed Officer A for a fee, or unnamed Officer B, or other individuals without any physical inspection, according to the indictment.
In some instances, based on the allegedly false towing paperwork and false police affidavits, the Indiana Bureau of Motor Vehicles issued clean titles to various auto brokers for vehicles that were previously issued salvage titles. In other instances, other individuals obtained Indiana rebuilt titles through fraud and then placed stickers on those titles concealing that the titles identified the vehicles as being rebuilt. After obtaining either a clean or rebuilt Indiana title for the vehicles, Ignolikov purchased the vehicles in the name of Seven Amigos, Chicago Elite Cab, or other businesses and paid a premium above the purchase price in exchange for the brokers’ work in securing the clean or rebuilt Indiana titles, the indictment alleges.
Finally, Ignolikov and his business associates allegedly used the clean and rebuilt Indiana titles to obtain clean Illinois titles for the vehicles, and later concealed from the City of Chicago the fact that the vehicles were previously issued salvage or rebuilt titles, which prohibited them from being used as taxis.
The arrests and indictment were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Joseph Ferguson, Inspector General for the City of Chicago. The investigation is continuing, they said.
The government is being represented by Assistant U.S. Attorneys Margaret Schneider and Steven Dollear.
Conspiracy carries a maximum sentence of five years in prison, while each count of interstate transportation and possession of false auto titles carries a maximum penalty of 10 years in prison and all five counts carry a $250,000 maximum fine. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Chicago Man Charged and Arrested for Making Bomb and Violence Threats Against Southern Illinois UniversityRead the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Derrick Dawon Burns, 21, of Chicago, Illinois, was charged in a previously-sealed criminal complaint on September 25, 2014, with eight federal charges stemming from a series of bomb and violence threats directed toward Southern Illinois University, Carbondale (SIUC), students, faculty and staff on October 10, 2012, October 15, 2012, December 6, 2012, and October 1, 2013.
“I am proud of the unflagging investigative efforts performed by the federal and state law enforcement agencies working jointly on this case. These types of threats carry immensely dangerous consequences for all involved. You can be certain that my office and law enforcement never once failed to take these threats seriously or to give up the fight to apprehend the person we believe is responsible. Instilling anger, fear and disruption at a major university is something the people of Southern Illinois should not have to condone.” said United States Attorney Wigginton.
After authorities arrested Burns in Chicago today, he had his initial appearance in the United States District Court for the Northern District of Illinois, where the criminal complaint was unsealed. Burns is being held without bond pending a detention hearing set for Wednesday, October 1, 2014, in Chicago.
Each of the eight federal charges carry maximum penalties of ten years imprisonment, three years supervised release, a $250,000 fine and a $100 special assessment.
The criminal complaint is the culmination of an investigation on the part of the SIUC Department of Public Safety, the Federal Bureau of Investigation, and the United States Postal Inspection Service. Assistance was provided by the Carbondale Police Department, the Illinois Secretary of State Bomb Squad, the Jackson County Sheriff’s Department, and the Illinois State Police. The case is being prosecuted by Assistant U.S. Attorney Liam Coonan and Special Assistant U.S. Attorney John C. Constance.
Chaparral Man Sentenced to Federal Prison for Unlawful Possession of Stolen FirearmsRead the Press Release
ALBUQUERQUE – Pete Richard Ferraro, 23, of Chaparral, N.M., was sentenced today in federal court in Las Cruces, N.M., to 57 months in federal prison followed by three years of supervised release for unlawfully possessing stolen firearms. His co-defendant Emanuel Medina, 24, of El Paso, Texas, was sentenced on Sept. 23, 2014, to 46 months in federal prison followed by two years of supervised release for a similar conviction.
Medina and Ferraro were arrested on a criminal complaint filed in Oct. 2013, charging them with unlawfully possessing firearms between Oct. 11, 2013 and Oct. 23, 2013, in Doña Ana County, N.M. According to the complaint, on Oct. 22, 2013, an officer of the El Paso Police Department reported that a rifle and a shotgun were missing from his unmarked police vehicle. The results of a latent prints examination revealed that Ferraro left his fingerprints on the police vehicle. During the course of the investigation, Medina and Ferraro were interviewed and implicated themselves in the theft of the firearms. The firearms were recovered in two Chaparral residences.
On May 27, 2014, Medina pled guilty to a felony information charging him with possession of stolen firearms. In his plea agreement, Medina admitted that Ferraro and he broke into the officer’s vehicle, stole the firearms and transported the firearms from Texas to New Mexico. Ferraro entered a guilty plea to possession of stolen firearms on July 23, 2014.
This case was brought as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.This case was investigated by the El Paso Group III Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the El Paso Police Department, and was prosecuted by Assistant U.S. Attorney Randy Castellano of the U.S. Attorney’s Las Cruces Branch Office.
Cedar Rapids Man Pleads Guilty to Maintaing A Premises to Sell Synthetic Drugs and Identity TheftRead the Press Release
A man who opened the Fragrance Hut smoke shop pled guilty today in federal court in Cedar Rapids.
Matthew James McCauley, age 39, from Cedar Rapids, Iowa, was convicted of maintaining a premises for the distribution of controlled substances and aggravated identity theft.
At the plea hearing, McCauley admitted he opened the Fragrance Hut, formerly located at 2902 First Avenue NE in Cedar Rapids, for the purpose of distributing illegal synthetic controlled substances, commonly referred to as “spice” or “K2.” Court documents reflect McCauley opened the Fragrance Hut in February 2014, and that the store sold synthetic cannabinoid products with names like “WTF,” “Diablo,” “Purple Haze,” “Fairly Legal,” “Green Giant,” and “Smoking Santa.” McCauley also admitted to having stolen the identity of another individual during and in relation to a wire fraud scheme. Court documents reflect McCauley created a false driver’s license using another individual’s name and date of birth. McCauley then used that name and date of birth to obtain a fraudulent line of credit to purchase jewelry at a local jewelry store.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. McCauley remains in custody of the United States Marshal after the guilty plea and will remain in custody pending sentencing. McCauley faces a possible maximum sentence of 20 years’ imprisonment on the drug charge, and a mandatory consecutive sentence of 2 years’ imprisonment on the identity theft charge. He also faces up to $750,000 in fines, $200 in special assessments, and 4 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Dan Chatham and was investigated by as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa Division of Narcotics Enforcement; and the Sixth Judicial District Department of Correctional Services.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file numbers are CR14-94-LRR and 14-MJ-186.
Cedar Rapids Man Pleads Guilty to Being A Felon and Unlawful Drug User in Possession of A FirearmRead the Press Release
A man who discharged a shotgun into an apartment above his own pled guilty today in federal court in Cedar Rapids.
Clifford Smith, age 51, from Cedar Rapids, Iowa, was convicted of one count of being a felon and unlawful drug user in possession of a firearm.
In a plea agreement, Smith admitted that he was a felon, having been convicted in 1992 and 2003 of drug offenses in the Iowa District Court for Linn County. Smith also admitted he was an unlawful user of marijuana. On July 4, 2013, Smith was living in a down stairs apartment on Wilson Avenue in Cedar Rapids. At some point in the early morning hours that day, Smith discharged a shotgun in his apartment. The blast penetrated the floor of the apartment above Smith’s own apartment. The owner of that apartment contacted the Cedar Rapids Police Department.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Smith remains in custody of the United States Marshal and will remain in custody pending sentencing. Smith faces a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, $100 in special assessments, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the FBI Safe Streets Task Force and the Cedar Rapids Police Department.
Court file information is available at ttps://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-CR-00071.
Calvert County Man Indicted on Drug Charges, Including the Distribution of Heroin Resulting in DeathRead the Press Release
Greenbelt, Maryland - A federal grand jury has indicted Russell Edward Johnson, age 23, of Lusby, Maryland, today on charges of drug distribution, including one count of distribution of heroin resulting in death.The indictment 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; Calvert County Sheriff Mike Evans; and Calvert County State’s Attorney Laura Martin.
“Heroin is quickly becoming the drug of choice, leaving in its wake countless victims who have succumbed to heroin related overdoses, and in some cases, death. Today, Mr. Johnson is charged with supplying heroin, causing the ultimate, tragic death of an innocent person. Heroin has claimed another casualty: a victim that could have been your brother, your father, or a friend,” said Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division. “This investigation was a collaborative effort of DEA and the United States Attorney’s Office, Calvert County Sheriff’s Department and the Calvert County State’s Attorney’s Office. Together we send a message that drug dealers will pay the price for their acts. DEA will use all resources at its disposal to investigate and arrest those individuals whose only motivation is greed and who carry with them a complete disregard for human life.”
The four count indictment alleges that on April 10, 2013, Johnson possessed oxycodone with the intent to distribute and that on July 11 and July 18, 2013, Johnson distributed heroin. Finally, the indictment alleges that on July 18, 2013, Johnson distributed heroin and a person died as a result of using that heroin.
Johnson faces a mandatory minimum sentence of 20 years and a maximum of life in prison for distribution of heroin resulting in death; and a maximum of 20 years in prison for each of the two counts of distribution of heroin and for possession of oxycodone with the intent to distribute. An initial appearance has not yet been scheduled. Johnson is currently detained on related state charges.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the DEA, Calvert County Sheriff’s Office, and Assistant State’s Attorney Lisa Ridge of the Calvert County State’s Attorney’s Office, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Arun G. Rao and Daniel C. Gardner, who are prosecuting the case.
Browning Man Is Convicted After Federal Strangulation Jury TrialRead the Press Release
GREAT FALLS-The Montana United States Attorney's Office announces that the first federal felony strangulation jury conviction has occurred in Great Falls, Montana. A jury of Montana citizens convicted Jordan James Lamott on September 16, 2014, of strangling his girlfriend three times, after which she passed out. Under the new strangulation statute, Lamott faces up to ten years in prison, a $250,000 fine, and three years of supervised release. This is the first trial conviction in Montana under a new federal statute criminalizing strangulation on Indian Reservations of federally-recognized tribes. It is also one of the first such cases in the country.
This conviction represents a significant step forward in ensuring the safety and well-being of women and families on Montana's reservations," said Mike Cotter. "This violence can have lethal consequences, and we are proud to be among the first districts to ensure this statute is vigorously enforced." Victims of one episode of strangulation are six times more likely to be a victim of attempted homicide by the same partner. These same victims are seven times more likely to actually die at the hands of their loved ones. A recent Center for Disease Control and Prevention survey found that 46% of Native American women have experienced rape, physical violence, or stalking by an intimate partner in their lifetime.
Lamott is one of several Montana defendants recently charged with felony strangulation under the new statute. Lamott was indicted in July 2014 by a Montana federal grand jury. At trial, Assistant U.S. Attorney Ryan G. Weldon presented evidence that Lamott's girlfriend wore a skirt to impress him. Lamott became angry and strangled his girlfriend three times. The final time, she lost consciousness. In the morning, Lamott requested that his girlfriend have sex with him, and when she refused, he kicked her out of the house. At the hospital a few hours later, Lamott's girlfriend explained that she had been strangled. Medical professionals testified that the bruising around her neck was consistent with strangulation.
The United States Attorney's Office in Montana has joined forces with other law enforcement and social services agencies to conduct trainings on Montana's reservations regarding how to investigate these offenses and care for victims of these potentially-lethal felony offenses. On March 7, 2013, President Obama signed into law the reauthorization of the Violence Against Women Act (VAWA). This law contains provisions that significantly improve the safety of Native women and allow federal and tribal law enforcement agencies to hold more perpetrators of domestic violence accountable for their crimes. The strangulation statute and VAWA offers the U.S. Attorney's Office a critical weapon to ensure that domestic violence is dealt with swiftly before it becomes lethal.
The tribal provisions in VAWA address three significant legal gaps by: (1) recognizing certain tribes' power to exercise concurrent criminal jurisdiction over domestic violence cases, regardless of whether the defendant is Indian or non-Indian; (2) clarifying that tribal courts have full civil jurisdiction to enforce protection orders involving any person, Indian or non-Indian; and (3) creating new federal statutes to address crimes of violence, such as strangulation, committed against a spouse or intimate partner and providing more robust federal sentences for certain acts of domestic violence in Indian country.
The investigation of Lamott was conducted by the Bureau of Indian Affairs. Lamott's sentencing is December 18, 2014, at 2:30 p.m., at the Missouri River Courthouse in Great Falls, Montana.
Barre Woman to Serve 48 Months in Federal Prison for Distributing Crack Cocaine and Oxycodone PillsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on September 29, 2014, Heather Brown, 33, of Barre, Vermont, was sentenced to 48 months in federal prison for distributing hundreds of ounces of crack cocaine and tens of thousands of oxycodone pills and for continuing to deal drugs while under federal court supervision. United States District Judge William K. Sessions III ordered Brown to serve a three-year term of supervised release after her prison term is completed. Judge Sessions also ordered Brown to forfeit her drug proceeds, which include approximately $41,000 in cash seized from Brown and a handgun Brown used in furtherance of her drug distribution business.
According to court records, from 2011 until her first arrest on September 9, 2013, Brown sold thousands of oxycodone pills in the Barre area. She obtained these pills from an out-of-state source. Beginning about nine months prior to her 2013, arrest, Brown also sold hundreds of ounces of cocaine base, which she obtained from a separate out-of-state source. When members of the Vermont Drug Task Force arrested Brown on September 9, 2013, they searched her person and her Barre residence. In total, law enforcement seized approximately 800, 30 milligram oxycodone pills, over one ounce of cocaine base, commonly referred to as “crack” cocaine, over $41,000 in cash, and a .380 caliber handgun. Brown subsequently admitted that she was a drug dealer and told police that she had obtained the handgun in exchange for crack.
Brown was charged in federal court and ordered released under court supervision pending the resolution of her case. The Vermont Drug Task Force later learned that Brown continued to deal large quantities of oxycodone pills while under federal court supervision. On January 14, 2014, the Vermont State Police stopped a vehicle traveling north on Interstate 91 which had Brown as a passenger. Troopers found approximately 758 oxycodone pills on Brown’s person. The male driver of the vehicle told police that Brown had promised him oxycodone pills in exchange for him driving Brown to Holyoke, Massachusetts to obtain a re-supply of oxycodone pills. The man admitted that he had performed the same service for Brown approximately five times in the previous month-and-a-half.
After her January 14, 2014 arrest, Brown was detained pending resolution of her case. On March 12, 2014, she pled guilty to one count of conspiring to distribute oxycodone, one count of conspiring to distribute cocaine base, and one count of committing an offense while on federal conditions of release.For the oxycodone and cocaine base conspiracy convictions, Brown faced a maximum of 20 years in prison on each of the two counts. For committing a criminal offense while on federal pretrial release, which is a separate crime, Brown faced a maximum prison sentence of ten years. Under the U.S. Sentencing Guidelines, which are advisory, Brown’s recommended term of imprisonment was 151-188 months. Pursuant to a written plea agreement, Brown agreed she was responsible for selling at least 20,000, 30 milligram oxycodone pills, for selling at least 328 grams of cocaine base, and for possessing a firearm while dealing drugs.
At sentencing, the United States asked the court to sentence Brown to 82 months in prison. The government argued that the quantity of drugs Brown dealt, that she was armed, and that continued to deal drugs on a large scale while under federal court supervision, all constituted significant aggravating factors. The government also acknowledged a number of mitigating factors, including Brown’s relationship with her minor children, her lack of a lengthy criminal record, and her mental health issues.
Instead, Judge Sessions imposed a 48-month sentence. In explaining his decision Judge Sessions cited, among other factors, Brown’s history of depression and alcoholism, as well as her difficult childhood. Judge Sessions also emphasized the importance of Brown maintaining a relationship with her children.
United States Attorney Tristram J. Coffin commended the hard work of the Vermont State Police, the Vermont Drug Task Force, the Montpelier Police Department, and the Barre City Police Department. The prosecutor is Assistant United States Attorney Timothy C. Doherty, Jr. Brown is represented by Burlington defense attorney Mark Kaplan.Attorney General Holder Announces Latest Effort to Strengthen Community Policing with Approximately $124 Million Hiring Grant to Local Law EnforcementRead the Press Release
Attorney General Eric Holder and Director Ron Davis of the Office of Community Oriented Policing Services (COPS) today announced the department's latest effort to strengthen community policing through hiring grants that will fund nearly 950 officers at 215 law enforcement agencies in cities and communities across the country. This year’s $124 million in awards place a special emphasis on increasing community policing, bolstering crime reduction, and making the streets of America safer.
“These targeted investments will help to address acute needs – such as high rates of violent crime – funding 75 percent of the salary and benefits of every newly-hired or re-hired officer for three full years,” said Attorney General Holder. “The impact of this critical support will extend far beyond the creation and preservation of law enforcement jobs. It will strengthen relationships between these officers and the communities they serve, improve public safety and keep law enforcement officers on the beat.”
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Director Davis. “Funding from this year’s program will allow many cities and counties to focus newly sworn personnel on issues related to violent crime, property crime and school safety.”
The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides up to 75 percent of the approved entry-level salaries and fringe benefits of full-time officers for a 36-month grant period, with a minimum 25 percent local cash match requirement and a maximum federal share of $125,000 per officer position.
Grantees for the 2014 hiring program were selected based on their proposed community policing strategies, fiscal need and violent crime rates.
To date, the COPS Office has funded more than 125,000 officers serving over 13,000 state, local and tribal law enforcement agencies, in jurisdictions both large and small. More than 700,000 people – including government leaders, community members and police officials – have received training through COPS-funded organizations. Since its inception in 1994, the COPS Office has provided roughly $14 billion to put additional officers on the streets, to provide technical assistance and training, to enhance crime fighting technology and to support cutting-edge crime prevention initiatives.
For the entire list of grantees and additional information about the 2014 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
Attorney General Holder Announces Latest Effort to Strengthen Community Policing with Approximately $124 Million Hiring Grant to Local Law EnforcementRead the Press Release
New Hiring Grants Place Special Emphasis on Community Policing
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Attorney General Eric Holder and Director Ron Davis of the Office of Community Oriented Policing Services (COPS) announced the department's latest effort to strengthen community policing through hiring grants that will fund nearly 950 officers at 215 law enforcement agencies in cities and communities across the country. This year’s $124 million in awards place a special emphasis on increasing community policing, bolstering crime reduction, and making the streets of America safer.
“These targeted investments will help to address acute needs – such as high rates of violent crime – funding 75 percent of the salary and benefits of every newly-hired or re-hired officer for three full years,” said Attorney General Holder. “The impact of this critical support will extend far beyond the creation and preservation of law enforcement jobs. It will strengthen relationships between these officers and the communities they serve, improve public safety and keep law enforcement officers on the beat.”
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Director Davis. “Funding from this year’s program will allow many cities and counties to focus newly sworn personnel on issues related to violent crime, property crime and school safety.”
The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides up to 75 percent of the approved entry-level salaries and fringe benefits of full-time officers for a 36-month grant period, with a minimum 25 percent local cash match requirement and a maximum federal share of $125,000 per officer position.
Grantees for the 2014 hiring program were selected based on their proposed community policing strategies, fiscal need and violent crime rates.
To date, the COPS Office has funded more than 125,000 officers serving over 13,000 state, local and tribal law enforcement agencies, in jurisdictions both large and small. More than 700,000 people – including government leaders, community members and police officials – have received training through COPS-funded organizations. Since its inception in 1994, the COPS Office has provided roughly $14 billion to put additional officers on the streets, to provide technical assistance and training, to enhance crime fighting technology and to support cutting-edge crime prevention initiatives.
For the entire list of grantees and additional information about the 2014 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
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.
Akron Man Sentenced to Six Years in Prison for Possessing RicinRead the Press Release
Jeff Boyd Levenderis, age 58, of Akron, was sentenced to six years in prison for possessing the biological toxin ricin for use as a weapon, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation's Cleveland office.
Levenderis was convicted on four counts -- one count of possessing a biological toxin for use as a weapon, one count of possessing ricin and two counts of making false statements to FBI agents -- earlier this year following a trial.
The evidence and testimony introduced at trial showed that Levenderis produced ricin, a deadly biological toxin, at his home in Akron, sometime after 2000 and kept it in his freezer until it was recovered by FBI agents in January 2011.
The evidence showed that Levenderis intended to make a “weaponized” form of ricin. The evidence also showed that Levenderis planned to use the ricin against his stepfather and against first responders who might respond to a fire Levenderis planned to set at his house as part of an elaborate suicide plan.
Testimony at trial confirmed that the substance Levenderis manufactured contained active ricin and that it contained hundreds of lethal doses if inhaled or injected.
The case was prosecuted by Assistant United States Attorneys Matthew W. Shepherd and Om Kakani and Erin Creegan, Trial Attorney with the National Security Division of the United States Department of Justice. The conviction resulted from an investigation conducted by the FBI.
Administrator Sentenced to 68 Months in Prison for Role in $6 Million Miami Home Health Care Fraud SchemeRead the Press Release
An administrator of a Miami home health care company, Professional Medical Home Health LLC, was sentenced to serve 68 months in prison and ordered to pay $6,257,142 million in restitution today for her participation in a $6 million health care fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Acting Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services, Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement. U.S. District Judge Federico A. Moreno of the Southern District of Florida imposed the sentence.
According to court documents, Annilet Dominguez, 28, of Hialeah, Florida, was an administrator at Professional Home Health. Dominguez and her co-conspirators paid kickbacks to patient recruiters in return for providing patients to Professional Home Health. Dominguez and her co-conspirators falsified patient documentation to make it appear that beneficiaries qualified for and received home health care services, when, in fact, many of the beneficiaries did not actually qualify for or receive such services. Dominguez and her co-conspirators then caused the submission of false claims to Medicare for services that were not medically necessary or not provided.
From December 2008 through February 2014, Medicare paid Professional Home Health approximately $6.25 million for fraudulent claims for home health care services.
On June 25, 2014, Dominguez pleaded guilty to one count of conspiracy to commit health care fraud and three counts of making false statements related to health care matters. On Aug. 26, 2014, co-defendant Annarella Garcia was sentenced to serve 70 months in prison and ordered to pay $6,257,142 million in restitution.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorneys Anne P. McNamara and A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
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Administrator Sentenced to 68 Months in Prison for Role in $6 Million Miami Home Health Care Fraud SchemeRead the Press Release
An administrator of a Miami home health care company, Professional Medical Home Health LLC, was sentenced to serve 68 months in prison and ordered to pay $6,257,142 million in restitution today for her participation in a $6 million health care fraud scheme.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Acting Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services, Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement. U.S. District Judge Federico A. Moreno of the Southern District of Florida imposed the sentence.
According to court documents, Annilet Dominguez, 28, of Hialeah, Florida, was an administrator at Professional Home Health. Dominguez and her co-conspirators paid kickbacks to patient recruiters in return for providing patients to Professional Home Health. Dominguez and her co-conspirators falsified patient documentation to make it appear that beneficiaries qualified for and received home health care services, when, in fact, many of the beneficiaries did not actually qualify for or receive such services. Dominguez and her co-conspirators then caused the submission of false claims to Medicare for services that were not medically necessary or not provided.
From December 2008 through February 2014, Medicare paid Professional Home Health approximately $6.25 million for fraudulent claims for home health care services.
On June 25, 2014, Dominguez pleaded guilty to one count of conspiracy to commit health care fraud and three counts of making false statements related to health care matters. On Aug. 26, 2014, co-defendant Annarella Garcia was sentenced to serve 70 months in prison and ordered to pay $6,257,142 million in restitution.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorneys Anne P. McNamara and A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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.
Acoma Pueblo Man Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Robert Lucero, 44, an enrolled member of the Acoma Pueblo, pleaded guilty this morning to a federal assault charge under a plea agreement with the U.S. Attorney’s Office.
Lucero was arrested on May 21, 2014, on a criminal complaint charging him with assault with a dangerous weapon, with intent to do bodily harm, and resulting in serious bodily injury. Lucero subsequently was charged in a two-count indictment with assault with a dangerous weapon and assault resulting in serious bodily injury. According to court filings, the victim, also an enrolled member of Acoma Pueblo, stated that Lucero assaulted the victim, with what appeared to be a wooden bat or stick on May 1, 2014 within the boundaries of the Pueblo of Acoma Reservation.
During today’s hearing, Lucero entered a guilty plea to count two of the indictment and admitted that on May 1, 2014, he assaulted the victim with a wooden axe handle, which resulted in serious bodily injury.
Lucero has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. Under the terms of his plea agreement, Lucero will be sentenced to 24 months in federal prison followed by a term of supervised release to be determined by the court.
This case was investigated by the Albuquerque office of the Federal Bureau of Investigation with assistance from the Acoma Pueblo Police Department and is being prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
Sunday 28 September 2014
Drug Importer Sentenced in Federal CourtRead the Press Release
Adrian Alexusia Benson, 37, of Daphne, Alabama, was sentenced in federal court this morning for his illegal importation of controlled substances. In May of 2014, Benson had pled guilty to the importation of Ketamine, a Schedule III controlled substance, and to attempting to import Anabolic Steriods and Xanax, Schedule III and IV controlled substances respectively.
United States District Court Judge William H. Steele ordered that Benson serve three years probation for the offenses. The judge also ordered that Benson undergo testing and treatment for drug abuse while he is on probation, and required that Benson pay $300 in special mandatory assessments.
The case was investigated by the Department of Homeland Security Investigations and the United States Postal Inspectors. It was prosecuted in the United States Attorney's Office by Assistant United States Attorney Gloria Bedwell.
Friday 26 September 2014
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Adrian Williams, 41, of La Porte, Indiana pled guilty to the felony offense of manufacturing marijuana. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Administration. Sentencing has been set for 1/8/ 2015. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITION
- Oscar Martinez, 35, of Logansport, Indiana was sentenced to 37 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of conspiracy to distribute cocaine. According to documents filed in this case, between March 2012 and November 2013, Martinez was involved with several individuals in distributing cocaine in the Logansport area. Martinez delivered cocaine to an individual working for law enforcement. This case was the result of an investigation by the Drug Enforcement Administration. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Week in Review – HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Michael Radovick, 29, of Gary, Indiana pled guilty to the felony offenses of distribution of cocaine and distribution of cocaine offense committed while on release. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Alcohol, Tobacco and Firearms. Sentencing has been set for 1/23/2015. This case is being prosecuted by Assistant United States Attorney Thomas McGrath.
- Akeem Dillon, 28 of Chicago, Illinois, pled guilty to the felony offense of being a felon in possession of a firearm. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for 1/9/2015. This case is being prosecuted by Assistant United States Attorney Thomas McGrath.
- Roberta Butler, 32, of Valparaiso, Indiana pled guilty to the felony offense of conspiracy to commit mail fraud. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. Sentencing has been set for 12/11/2014. This case is being prosecuted by Assistant United States Attorney Toi Houston.
- Marlon Carr, 21, of Gary, Indiana pled guilty to the felony offense of being a felon in possession of a firearm. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for 1/8/2015. This case is being prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITION
- Chauncey Hackett, Jr, 23, of East Chicago, Indian was sentenced to 18 months imprisonment followed by 1 year of supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, in February 2014, Hackett fled police and dropped a semi-automatic pistol, which had previously been reported stolen, as he fled. Following a short pursuit, Hackett was arrested and the firearm was recovered. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Dean Lanter.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Joseph R. Topp, 21, of Angola, Indiana was sentenced to 60 months imprisonment with 5 years supervised release after pleading guilty to the felony offense of distribution of material involving sexual exploitation of minors. According to documents filed in this case, a law enforcement agent, working in an undercover capacity, signed into an online publically available network via a file sharing program. The federal agent proceeded to browse shared directories and observed several video files being shared. Several of the titles were indicative of child pornography. During the course of the investigation, the federal agent utilized a program in order to identify the location of the user. A search warrant was executed that led to an interview of Topp, who admitted to using P2P (Peer to Peer) file sharing programs for several year. This case was the result of an investigation by the Federal Bureau of Investigation Cyber Crime Task Force. This case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
- Deandre Banks, 24, of Fort Wayne, Indiana was sentenced to time served for term of imprisonment with 3 years supervised release and to pay $87,000 in restitution after pleading guilty to the felony offense of bank fraud. According to documents filed in this case, an investigation conducted by the Internal Revenue Service revealed that from in or about July 2013 to in or about August 2013, Banks executed a scheme to commit bank fraud. This case was the result of an investigation by the Internal Revenue Service. This case was prosecuted by Assistant United States Attorney Lovita Morris-King.
- James B Nelson, 32, of Fort Wayne, Indiana was sentenced to 108 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of possession with intent to distribute lysergic acid diethylamide (LSD), ethylenedioxymethamphetaime and ketamine. According to documents filed in this case, law enforcement agencies were alerted to Nelson using postal services to ship drugs nationwide. After a search warrant was issued, Nelson’s residence was searched and items recovered included a hydraulic pill press, controlled substances, mailing labels and $123,647.00 in cash. This case was the result of an investigation by the Department of Homeland Security Investigations, United States Postal Inspection Service, the Drug Enforcement Agency, Fort Wayne Police Department, Indiana State Police and the Allen County Police Department. This case was prosecuted by Assistant United States Attorney Tina Nommay.
- Brandon S Keister, 22, of Russell, Kentucky was sentenced to 33 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of stealing a firearm from a licensed dealer. According to documents filed in this case, in September 2012, a bait and tackle gun shop was burglarized. Keister broke into the shop and stole 23 handguns. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Steuben County Sheriff’s Department and the Kendallville Police Department. This case was prosecuted by Assistant United States Attorney Tina Nommay.
Washington, D.C., Felon Sentenced for Using Straw Purchaser to Illegally Acquire FirearmsRead the Press Release
ALEXANDRIA, Va. – Othaniel D. Gaither, 25, of Washington, D.C., was sentenced today to 78 months in prison followed by three years of supervised release, for acquiring an assault rifle and semi-automatic pistol, attempting to evade police during a high speed chase and ramming two law enforcement vehicles.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, and Charles E. Smith, Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga.
Gaither pleaded guilty on July 8, 2014, to being a felon in possession of a firearm. According to court documents, Gaither, who was previously convicted of robbery with a dangerous weapon, utilized a female acquaintance to fraudulently acquire (straw purchase) two firearms from a federal firearms dealer in Northern Virginia. Gaither provided his female companion with over $1,000 which she used to obtain both a semi-automatic AK-47 style rifle and a semi-automatic pistol on his behalf. Following the purchase, Gaither took possession of both firearms.
Gaither, despite being a felon, independently purchased over 125 rounds of ammunition as well as a kit that converts a signal flare device into a handgun that fires 12 gauge shotgun shells. After obtaining the three firearms and ammunition, Gaither, who was being survielled by ATF agents, attempted to evade arrest by traveling at a high rate of speed through a densely populated area. He was ultimately stopped by ATF agents near the Pentagon City Mall in Arlington, Virginia. Upon being pulled over, Gaither first attempted to drive away, when that proved fruitless he intentionally rammed two law enforcement vehicles, effectively totaling them both. Following his ramming of the vehicles, Gaither was arrested and the firearms and ammunition were confiscated. As part of his sentence he was required to forfeit the three firearms he illegally acquired and possessed.
This case was investigated by the Falls Church Field Office of the ATF Washington Field Division. Assistant U.S. Attorney G. Zachary Terwilliger prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-234.
Washington, D.C., Felon Sentenced for Using Straw Purchaser to Illegally Acquire FirearmsRead the Press Release
ALEXANDRIA, Va. – Othaniel D. Gaither, 25, of Washington, D.C., was sentenced today to 78 months in prison followed by three years of supervised release, for acquiring an assault rifle and semi-automatic pistol, attempting to evade police during a high speed chase and ramming two law enforcement vehicles.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, and Charles E. Smith, Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga.
Gaither pleaded guilty on July 8, 2014, to being a felon in possession of a firearm. According to court documents, Gaither, who was previously convicted of robbery with a dangerous weapon, utilized a female acquaintance to fraudulently acquire (straw purchase) two firearms from a firearms dealer in Northern Virginia. Gaither provided his female companion with over $1,000 which she used to obtain both a semi-automatic AK-47 style rifle and a semi-automatic pistol on his behalf. Following the purchase, Gaither took possession of both firearms.
Gaither, despite being a felon, independently purchased over 125 rounds of ammunition as well as a kit that converts a signal flare device into a handgun that fires 12 gauge shotgun shells. After obtaining the three firearms and ammunition, Gaither, who was being survielled by ATF agents, attempted to evade arrest by traveling at a high rate of speed through a densely populated area. He was ultimately stopped by ATF agents near the Pentagon City Mall in Arlington, Virginia. Upon being pulled over, Gaither first attempted to drive away, when that proved fruitless he intentionally rammed two law enforcement vehicles, effectively totaling them both. Following his ramming of the vehicles, Gaither was arrested and the firearms and ammunition were confiscated. As part of his sentence he was required to forfeit the three firearms he illegally acquired and possessed.
This case was investigated by the Falls Church Field Office of the ATF Washington Field Division. Assistant U.S. Attorney G. Zachary Terwilliger prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-234.
Waldorf Armed Career Criminal Exiled to over 17 Years in Prison for Illegal Possession of A GunRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Louis Martin, age 51, of Waldorf, Maryland, today to 210 months in prison, followed by five years of supervised release, for illegal possession of a firearm by a convicted felon. A federal jury convicted Martin on April 9, 2014.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Director in Charge Andrew G. McCabe of the Federal Bureau of Investigation - Washington Field Office and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation - Baltimore Field Office.
According to the evidence presented at Martin’s five-day trial, law enforcement intercepted numerous calls indicating that Martin was attempting to obtain a firearm, planning to commit a robbery, and participating in the re-sale of stolen items. Martin was a previously convicted felon and as a result, was prohibited from possessing a firearm or ammunition. Witnesses testified that the investigation led to the execution of a search warrant at Martin’s residence on April 24, 2013. Martin was interviewed by FBI Special Agents who testified that Martin told them that he believed officers were at his home that morning because he told several people that he had been watching an armored truck and planned on robbing it. Martin also admitted to the agents that he had recently been trying to purchase a gun.
During the course of the search Martin left the residence to go to work. After Martin left, officers searched the second floor master bedroom, and discovered a loaded firearm folded within a stack of jeans in Louis Martin’s closet. Agents testified that they drove to Martin’s place of employment to interview him. When they informed Martin about the firearm recovered from his house, he admitted that he knew the gun was in his bedroom closet when the FBI searched his residence. Martin was arrested on May 1, 2013.
Martin was previously convicted of robbery; armed bank robbery; and bank robbery and use of a firearm in connection with a crime of violence
United States Attorney Rod J. Rosenstein commended the FBI’s Washington and Baltimore Field Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Leah J. Bressack and Deborah A. Johnston, who prosecuted the case.
Two Mercer County, N.J., Men Sentenced to Prison for Conspiring with Former Trenton, N.J., Mayor to Extort BribesRead the Press Release
Sentences Also Consider Separate Extortion, Narcotics Distribution and Weapons Charges
TRENTON, N.J. - Two Mercer County, New Jersey, men were sentenced today for conspiring with the former Mayor of Trenton and others to extort bribes and kickbacks in connection with a Trenton parking garage project, and for unrelated drug charges, U.S. Attorney Paul J. Fishman announced.
Joseph Giorgianni, a/k/a “Jo Jo,” 65, of Ewing Township, New Jersey, and Charles Hall III, 51, of Trenton, were sentenced to 78 and 48 months in prison, respectively. U.S. District Judge Michael A. Shipp imposed the sentences today in Newark federal court.
Giorgianni previously pleaded guilty before Judge Shipp to an indictment charging him with one count of conspiring with former Trenton Mayor Tony F. Mack, 48, Ralphiel Mack, 41, (Tony Mack’s brother) both of Trenton, Hall and others to obstruct interstate commerce by extorting individuals under color of official right in connection with the development of an automated parking garage. Giorgianni also pleaded guilty to one count of extorting individuals under color of official right in connection with the administration of a power washing contract, as well as charges contained in a separate indictment, including one count of conspiracy to distribute and possess with intent to distribute oxycodone and one count of possessing a firearm as a felon.
Hall previously pleaded guilty before Judge Shipp to an information charging him with one count of conspiring to obstruct interstate commerce by extorting individuals under color of official right. Hall also pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute oxycodone.
According to documents filed in this case and statements made in court:
Tony Mack, Ralphiel Mack, Hall, and Giorgianni conspired to accept approximately $119,000 in cash and other valuables – actually accepting $54,000 and planning to accept the rest – from two cooperating witnesses. In exchange for the payments, Tony Mack assisted them in their efforts to acquire a city-owned lot on East State Street to develop an automated parking garage. The scheme included a plan for the city of Trenton to sell the lot for far less than one of the cooperating witnesses was willing to pay – diverting $100,000 of the suggested purchase amount as a bribe and kickback payment to Giorgianni and Tony Mack. The mayor authorized and directed a Trenton official responsible for disposition of city-owned land to offer the East State Street lot to one of the witnesses for $100,000, significantly less than the amount originally proposed, so the rest could be taken as a bribe.
The defendants went to great lengths to conceal their corrupt activity and keep Tony Mack “safe” from law enforcement. For example, Giorgianni and Ralphiel Mack acted as intermediaries, or “buffers,” who accepted cash payments for Tony Mack’s benefit.
To conceal the corrupt arrangement, the defendants avoided discussing matters related to the scheme over the telephone. When those matters were discussed, they used code words and aliases, including “Uncle Remus,” which both Giorgianni and Hall regularly used to communicate to Tony Mack that a corrupt payment had been received. The defendants also concealed their activities by holding meetings concerning the corrupt activity away from Trenton City Hall, including a restaurant maintained by Giorgianni known as JoJo’s Steakhouse.
In addition to the parking garage bribe and extortion payments, Giorgianni and Hall admitted their involvement in a narcotics distribution conspiracy with Mary Manfredo, 67, of Lawrenceville, New Jersey, and others from May 2011 to July 2012. Hall said he obtained, in coordination with Giorgianni, 13 prescriptions for oxycodone-based pain medication from a doctor in Nutley, New Jersey, which included a total of 1,560 pills. JoJo’s Steakhouse served as a front where oxycodone pills and drug proceeds were received and distributed.
Also, on July 18, 2012, Giorgianni, a convicted felon, was found in possession of four guns, including three pistols and a pump-action shotgun.
Tony F. Mack and Raphiel Mack, both convicted following a five-week trial in February 2014, were sentenced to serve 58 months in prison and 30 months in prison, respectively.
In addition to the prison terms, Judge Shipp sentenced Giorgianni and Hall each to serve three years of supervised release.
Manfredo pleaded guilty to conspiring with Giorgianni, Hall and others to distribute and possess with intent to distribute oxycodone. Manfredo awaits sentencing.
U.S. Attorney Fishman credited special agents of the FBI’s Trenton Resident Agency, Newark Field Office, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation.
The government is represented by Assistant U.S. Attorneys Eric W. Moran and Matthew J. Skahill of the U.S. Attorney’s Office Special Prosecutions Division in Trenton and Camden, respectively.
14-345
Defense counsel: Jerome A. Ballarotto Esq., TrentonTwo Men Sentenced to Prison on Child Pornography ChargesRead the Press Release
CHARLOTTE, N.C. – On Tuesday, September 23, 2014, Chief U.S. District Judge Frank D. Whitney sentenced George Beall to 78 months in prison on federal child pornography charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Beall was also ordered to register as a sex offender and to serve the rest of his life under court supervision after he is released from prison. Judge Whitney also ordered Beall to pay $66,000 as restitution to eleven separate victims of child pornography.
Also on Tuesday, Judge Whitney sentenced Richard Lee Miller to 78 months in prison on federal child pornography charges. Miller was also ordered to register as a sex offender and to a lifetime of supervised release.
U.S. Attorney Tompkins is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Division.
In June 2013, Beall, 68, of Matthews, N.C. pleaded guilty to one count of possessing child pornography. According to filed documents and statements made in court, in May 2011, law enforcement became aware of Beall’s collection of child pornography after it was discovered by computer repair technicians. Court documents indicate that law enforcement later seized additional computer equipment pursuant to a search warrant. Court records indicate that a forensic examination revealed that Beall possessed thousands of images and videos which included 96 different children already identified by law enforcement as victims of child pornography.
Beall has been in federal custody since his bond was revoked in June 2013. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
In August 2013, Miller, 63 of Charlotte, N.C. pleaded guilty to one count of possessing child pornography. According to filed documents and statements made in court, in March 2012, law enforcement were alerted to Miller’s collection of child pornography after it was discovered by computer repair technicians. According to court records, law enforcement later seized additional computer equipment from Miller’s residence. Court records indicate that a forensic examination revealed that Miller possessed thousands of images and videos which included eight different children already identified by law enforcement as victims of child pornography.
Miller has been in federal custody since his bond was revoked in August 2013. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
Both investigations were handled by the FBI. Assistant U.S. Attorneys Cortney S. Randall and David A. Thorneloe prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Two Inland Empire Men Ordered Held Without Bond After Being Charged in Federal Case Alleging Series of ATM RobberiesRead the Press Release
RIVERSIDE, California – Two men were charged today with participating in a string of ATM robberies in which they used power tools and a truck to forcibly open safes inside drive-up ATMs and steal nearly a half million dollars.
James William Costilow, 38, of Riverside, and David Joseph Silva Jr., 25, of Fontana, were charged today in a criminal complaint filed in United States District Court with attempted theft from a bank.
The charge relates to an unsuccessful ATM robbery early Tuesday morning in Murrieta, but the affidavit in support of the complaint alleges that the two men “have been successful in approximately four incidents and have stolen approximately $462,093 in cash.”
The attempted theft charge in the complaint stems from an incident in which Costilow and Silva allegedly went to a Chase Bank branch in Murrieta, used a pass code to trigger an audit of the ATM cash supply, and, once money was delivered to the machine, attempted to break into the safe to steal the money. After attempting to cut the hinges on the safe doors, they tried to pull the doors off with a truck, but the attempt failed when the bumper came off the truck, according to the affidavit.
Murrieta Police officers responded to the incident and took Costilow and Silva into custody after a short chase. They were held in local custody until yesterday, when they were turned over to federal authorities.
The affidavit describes how Costilow and Silva allegedly broke into ATM safes: “A type of power saw or a ‘jaws of life’ device is used to cut into the safe doors. Once the safe doors are weakened, a nylon towrope is tied to the safe door and to the truck. The truck attempts to pull the safe door off, enabling access to the money.”
There have been 15 thefts and attempted thefts from drive-up ATMs at Chase Bank branches in Los Angeles, Riverside and San Bernardino Counties over the past six months. The affidavit states that investigators believe Costilow and Silva were involved in all 15 incidents.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
Costilow and Silva made their initial court appearances earlier this afternoon in United States District Court, where a magistrate judge ordered them held without bond and scheduled an arraignment for October 15.
The charge of attempted bank theft carries a statutory maximum sentence of 10 years in federal prison.
This case is the product of an ongoing investigation by the Federal Bureau of Investigation and the Murrieta Police Department.
Release No. 14-130
Two Indicted for Alleged Conspiracy to Sell Weapons Supposedly Owned by Family of Saddam HusseinRead the Press Release
NEWARK, N.J. - A federal grand jury in Newark returned an indictment today charging two men with conspiring to sell seven firearms in New Jersey believed to have been stolen and smuggled out of Iraq after once belonging to the family of Saddam Hussein, U.S. Attorney Paul J. Fishman announced.
David Phillip Ryan, 50, of Miami, Florida, and Carlos Quirola-Ordonez, a/k/a “Julio Antonio Gonzalez,” a/k/a “Manny,” 57, of New Milford, New Jersey, are each charged with one count of conspiring to transport stolen firearms. Ryan is also charged with one count of transporting stolen property in interstate commerce.
According to the indictment and other documents filed in Newark federal court:
In April 2012, law enforcement received information that valuable firearms allegedly belonging to members of the family of the late Iraqi president Saddam Hussein were available for sale. The weapons were kept in Florida while attempts were made by Ryan, Quirola-Ordonez and others to find buyers in New Jersey. During the course of the conspiracy, seven firearms – which were appraised as a collection to be worth between $250,000 to $350,000 – were shipped to New Jersey for viewing by potential buyers.
Federal law enforcement officers seized the following firearms in the course of the investigation:
- One Coonan Arms Inc., .357 semi-automatic pistol, nickel finish, made in St. Paul, Minn., with gold inlay and a medallion “QS” on left side grip (believed to be the initials of Qusay Saddam Hussein al-Tikriti, the second son of former Iraqi President Saddam Hussein);
- One Korth, .357 magnum revolver (six shot) stamped “Made in W. Germany Waffenfabrik Koth Ratzeburg/LBG,” with gold inlay, black finish, wood grips, which displays a drawing of a wild boar;
- One Korth, .357 magnum, revolver (six shot) stamped “Made in W. Germany Waffenfabrik Koth Ratzeburg/LBG,” with gold inlay, black finish, wood grips, which displays a drawing of a moose;
- One Chinese State Factories type 64 pistol, .32 caliber semi-auto pistol, black finish, with Yemen flag icon on both sides of grip and Arabic writing on the slide;
- Two Cosmi, 12 gauge shotguns, break top, single barrel;
- One Llama Semiautomatic .45 ACP pistol with gold leaf and gold inlays, hand engraved, bearing the initials “QS”
The conspiracy count carries a maximum potential penalty of five years in prison and a $250,000 fine. The unlawful transportation of stolen property in interstate commerce count with which Ryan is also charged carries a maximum penalty of 10 years in prison and a $250,000 fine.
Four men, including Ryan and Quirola-Ordonez, were originally charged by complaint with related offenses. The two other individuals, Howard Blumenthal and Karlo Sauer, have pleaded guilty to their roles in this conspiracy and await sentencing.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of George P. Belsky; and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees, with the investigation leading to the charges.
The government is represented by Joyce M. Malliet of the U.S. Attorney’s Office National Security Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
14-344
Defense counsel:
David Philip Ryan: Michael V. Gilberti Esq., Red Bank, New Jersey
Carlos Manuel Quirola-Ordonez: Miles Feinstein Esq., Clifton, New JerseyRyan, David Phillip and Quirola-Ordonez, Carlos Indictment
Two District Men Sentenced to Prison Terms for Armed Robberies in Northwest WashingtonPair of Attacks Took Place Within Nine-Day Period; Victims Accosted While Returning to Their HomesRead the Press Release
WASHINGTON – Lamont Lamar Buskey, 34, was sentenced today to 16 ½ years in prison, and Keith Allen Simms, 41, was sentenced to a 12 ½-year prison term, for a pair of armed robberies that took place within a nine-day period in 2013 in the Columbia Heights area of Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Buskey and Simms, both of Washington, D.C., were found guilty by a jury in May 2014 of 11 charges each, following a trial in the Superior Court of the District of Columbia. Each was found guilty of one count of conspiracy, one count of first-degree burglary while armed, one count of second-degree burglary, two counts of armed robbery, two counts of robbery, one count of armed kidnapping, two counts of kidnapping, and one count of carrying a dangerous weapon.
They were sentenced by the Honorable John McCabe. Upon completion of their sentences, both men will be placed on a period of five years of supervised release.
According to the government’s evidence, the first attack took place on the afternoon of Sept. 7, 2013. Two sisters - ages 18 and 14 - were returning to the apartment building where they lived with their parents on 14th Street NW, in the Columbia Heights neighborhood, after spending the day together. Buskey and Simms followed them into their secure building after they opened the door with an access key. Buskey and Simms, who were strangers to the sisters, then followed them onto the elevator. When the elevator opened at the floor where the sisters lived, Buskey and Simms blocked them from getting out. Buskey pulled out what appeared to be a can of pepper spray and also threatened to stab the sisters unless they turned over their jewelry.
Buskey and Simms grabbed chains from their victims’ necks while the sisters screamed. Buskey and Simms then robbed the sisters of their rings and bracelets. When the elevator reached the ground floor, Buskey and Simms fled the building from a side door.
The second attack took place on the morning of Sept. 16, 2013. A man was returning to his rowhouse on Warder Street NW after getting breakfast at a local restaurant. He brought his bicycle into the basement level of the rowhouse, leaving the front door ajar. Buskey and Simms entered the building through the open door. Buskey grabbed the victim’s hands, put them behind the victim’s back, and made him lie down on the floor. Buskey then put his hands around the victim’s mouth and pointed a knife to his neck. Simms, meanwhile, went through the victim’s pockets and clothes while Buskey held the victim down.
Buskey and Simms kicked the victim, and Simms took two cell phones, $5, and keys from the victim’s pockets. Buskey grabbed the keys while Simms took over holding the victim down with a knife to the victim’s neck. Buskey then forced his way into another room in the basement, where two additional people lived. These people were asleep when Buskey forced entry into the room. Buskey, armed with a knife, commanded one of the victims to come to the door, and when the victim complied, Buskey snatched a chain from the victim’s neck.
Buskey and Simms sold the proceeds of both offenses to a pawn shop in Maryland.
In announcing the sentence, U.S. Attorney Machen commended the work of the detectives, officers, and crime scene technicians who investigated the case for the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Criminal Investigator Nelson Rhone; Litigation Support Specialist Ron Royal; Paralegal Specialist Debra McPherson, and Victim/Witness Advocate Elsa Resendiz. Finally he thanked Assistant U.S. Attorneys Michelle Parikh and Natalia Medina, who investigated and prosecuted the case.
14-218Two Campaign Workers Admit to Buying Votes in Hidalgo County, Texas, ElectionsRead the Press Release
Two campaign workers pleaded guilty this week in the Southern District of Texas for paying voters to vote in two 2012 elections in Hidalgo County, Texas, 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.
Veronica Saldivar, 42, of Donna, Texas, pleaded guilty today to one count of vote-buying before U.S. District Judge Randy Crane of the Southern District of Texas and is scheduled for sentencing on Dec. 8, 2014. Belinda Solis, 39, also of Donna, pleaded guilty on Sept. 25, 2014, to one count of vote-buying before U.S. District Judge Micaela Alvarez of the Southern District of Texas and is scheduled for sentencing on Dec. 11, 2014.
According to Saldivar’s plea agreement, a primary election was held on May 29, 2012, in Donna for the presidential election, and various state, county, and local offices, including the office of a county commissioner for Hidalgo County. Saldivar assisted in the campaign to elect a candidate to the office of county commissioner. In the course of that work, she paid voters with cash and cocaine for voting in this primary election and for voting for a specific candidate for a county commissioner position.
According to Solis’s plea agreement, a general election was held on Nov. 6, 2012, in Donna, for the presidential election and various state, county, and local offices, including the Donna School Board. Solis assisted in the campaign to elect a slate of four candidates to the Donna School Board. In the course of that work, she paid voters cash for voting in the election and for voting for specific Donna School Board candidates.
This case was investigated by the FBI and is being prosecuted by Trial Attorneys Monique Abrishami and Jennifer Blackwell of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Leo J. Leo of the Southern District of Texas.
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Temple Hills Bank Robber Sentenced to Six Years in PrisonRead the Press Release
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Pierre Ramone Washington, age 29, of Temple Hills, Maryland today to six years in prison followed by three years of supervised release for bank robbery. Chief Judge Chasanow also ordered Washington to pay restitution of $13,861.
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; Anne Arundel County Police Chief Kevin Davis; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Mark A. Magaw of the Prince George’s County Police Department; Anne Arundel County State’s Attorney Anne Colt Leitess; Montgomery County State’s Attorney John McCarthy; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to his plea agreement, between May 22 and September 26, 2013, Washington committed five bank robberies. In each case, Washington entered the bank and presented the teller with a note demanding money. Washington stole a total of $13,861.Specifically, Washington robbed: the Capital One Bank in the 11000 block of New Hampshire Avenue in Silver Spring, Maryland, on May 22nd, stealing $3,109; the TD Bank in the 700 block of Crane Highway in Glen Burnie Maryland on June 27th, stealing $1,694; the Capital One Bank in the 21000 block of Frederick Road in Germantown, Maryland, on July 24th, stealing $5,700; the Bank of Glen Burnie in the 1200 block of Generals Highway in Crownsville, Maryland, on September 17th, stealing $2,298; and the SunTrust Bank in the 4600 block of Old Branch Avenue in Temple Hills, Maryland, on September 26th, stealing $430.
United States Attorney Rod J. Rosenstein praised the FBI, Anne Arundel County Police Department, Montgomery County Police Department, Prince George’s County Police Department, and the Anne Arundel, Montgomery and Prince George’s County State’s Attorneys’ Offices for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Nicolas A. Mitchell and Deborah A. Johnston, who prosecuted the case.
St. Petersburg Man Pleads Guilty to Sex Trafficking ChargesRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Derrick L. Hayes, a/k/a “D-Man,” (27, St. Petersburg) pleaded guilty yesterday to one count of conspiracy to engage in sex trafficking of children by force or coercion, and two counts of sex trafficking of children by force or coercion. He faces a maximum penalty of life in federal prison on each count. Hayes also must register as a sex offender. His sentencing hearing has been set for December 12, 2014.
According to court documents, in December 2012 and January 2013, Hayes conspired with his girlfriend, Keosha Renee Jones, to arrange for two 14-year-old victims to engage in commercial sex acts in St. Petersburg. After meeting the victims, Hayes took them to a residence and directed them to engage in sex acts with his associates. With Hayes’ knowledge, Jones also took the victims to a hotel in St. Petersburg, where the victims engaged in additional sex acts for money. Hayes visited the hotel regularly, collected the proceeds from the sex acts, and directed the victims to engage in additional sex acts with his associates. Hayes also beat and threatened Jones in the victims’ presence, and threatened the victims.
On September 19, 2013, Jones pleaded guilty to her role in the conspiracy. She is awaiting sentencing.
This case was investigated by the Federal Bureau of Investigation, the Clearwater Police Department, the St. Petersburg Police Department, and the Largo Police Department. It is being prosecuted by Assistant United States Attorneys Joseph W. Swanson and Stacie B. Harris.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Shreveport Man Pleads Guilty to Possessing an Assault Rifle after being Convicted of FeloniesRead the Press Release
SHREVEPORT, La. –A Shreveport man pleaded guilty Thursday to possessing an assault rifle and ammunition after being convicted of multiple felonies, U.S. Attorney Stephanie A. Finley announced.
Cori Yarborough, 40, of Shreveport, pleaded guilty Thursday before U.S. District Judge Elizabeth E. Foote to one count of possession of a firearm by a convicted felon. According to evidence presented at the guilty plea, Shreveport Police responded to a complaint on May 3, 2014 that someone was driving in a van with an assault rifle. They stopped Yarborough’s vehicle and found a Colt rifle, model M4, .223 caliber, and ammunition. After examining the rifle, police found that it had been reported stolen. Yarborough has multiple felonies including simple robbery in 1992, aggravated battery in 1997, and attempted burglary of an inhabited dwelling in 2012.
Yarborough faces 10 years in prison, and if the court finds he qualifies as an armed career criminal based on his prior record, he could face a mandatory 15 years in prison. He also faces three years of supervised release and a $250,000 fine. A sentencing date of January 30, 2015 was set.
This case is part of Project Safe Neighborhoods, which is a Department of Justice initiative designed to reduce firearm crimes by removing dangerous and persistent felons from the community and promote firearm safety.
The ATF and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney James G. Cowles Jr. is prosecuting the case.
Saltwater Disposal Well Operator Pleads Guilty to Multiple Felony Charges in Connection with Operation of WellRead the Press Release
Nathan R. Garber, 45, of Kalispell, Montana, pleaded guilty in federal court in Bismarck to eleven felony charges stemming from the operation of a saltwater disposal well near Dickinson, in Stark County, North Dakota, the Justice Department announced.
Garber pleaded guilty to one count of conspiracy to violate the Safe Drinking Water Act and defraud the United States. He also pleaded guilty to five counts of violating the Safe Drinking Water Act, two counts of making false statements, two counts of falsification of records and one count of concealment or cover up of a tangible object.
The well, named the Halek 5-22, received “produced water” constituting “brine and other wastes” commonly and generically referred to as “saltwater.” “Saltwater” in this context covers a wide array of drilling waste fluids, including hydraulic fracturing fluid, which is water combined with chemical additives such as biocides, polymers and “weak acids.” The EPA has stressed that this water is often saltier than seawater and can “contain toxic metals and radioactive substances.”
“Every aspect of domestic energy extraction, including the disposal of wastewater, must accord with the nation’s environmental laws that protect air, water and soil from contamination,” said Sam Hirsch, the Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “The American people expect nothing less than safe, responsible and legal behavior from those involved in oil and gas development in the Bakken and elsewhere. The Justice Department will vigorously prosecute those who violate this trust and the law.”
“The convictions secured today on 11 felony counts underscores the seriousness of the conduct here,” said U.S. Attorney Timothy Purdon of the District of North Dakota. “Any time anyone in the Bakken oil boom region puts our water supplies at risk for contamination by intentionally breaking the laws in place to protect that water, the North Dakota U.S. Attorney’s Office, the Department of Justice and our partners at Environmental Protection Criminal Investigation Division will use every tool at our disposal to ensure that these offenders are brought to justice. I want to particularly commend the Environmental Protection Agents based in Helena, Montana who worked this case. Their commitment to this investigation, despite the fact that it being an eight hour one-way drive from their office, never wavered. Their commitment to make sure that this complex investigation was handled with the professionalism and skill it needed deserves special recognition and underscores the importance of ensuring that the Bakken region has access to these skilled Agents on a permanent basis.”
“As oil and natural gas development continues, it must be done in a way that ensures drilling byproducts are disposed of safely and legally,” said Special Agent in Charge Jeffrey Martinez of EPA’s criminal enforcement program in North Dakota. “The defendant’s disregard of environmental regulation under the Safe Drinking Water Act put human health and the environment at serious risk. Today’s plea demonstrates that EPA and its law enforcement partners are committed to protecting North Dakota’s precious water sources and the communities that rely upon them.”
According to an agreed-upon factual statement filed in court, Garber admitted to conspiring with others in a number of coordinated and illegal acts. For instance, Garber injected saltwater into the well without first having the state of North Dakota witness a test of the well’s integrity, causing a regulator to determine that there was no assurance as to the integrity of the well and that “the fluid could be going anywhere.” Garber also violated a February 2012 order from the state to stop injecting until a well integrity test was done. When questioned by the state about these injections, Garber made false statements in a March 6, 2012 email where he denied that these injections occurred.
The well failed a pressure test on Feb. 2, 2012, and Garber continued to inject saltwater even though he knew that the well did not have integrity and thus posed an increased risk of contaminating ground water.
Further, Garber moved a device called a “packer” up the wellbore in violation of the well’s permit, without first getting approval from the state. A properly placed packer is an essential device to maintaining integrity of the well and ensuring wastewater does not escape into surrounding soil and groundwater.
Then, Garber gave false information to a state inspector regarding the depth of the packer.
A search warrant was executed at the well on Nov. 20, 2013, and it was confirmed that the packer had been moved up in the wellbore and was significantly higher than the depth that had been initially represented by Garber. Despite illegally moving the packer on Feb. 14, 2012, Garber continued to inject saltwater into the well until on or about March 5, 2012, when a state employee shut the well in.
The case was investigated by the U.S. Environmental Protection Agency’s Criminal Investigation Division. Significant cooperation was provided by the North Dakota Industrial Commission (NDIC). The case is being prosecuted by the United States Attorney’s Office for the District of North Dakota and the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.
Rockport Woman Charged with Embezzlement by A Postal Service EmployeeRead the Press Release
EVANSVILLE - Josh J. Minkler, Acting United States Attorney, announced today that Brittney L. Thorpe, 26, of Rockport, was charged with embezzlement by a Postal Service employee following an investigation by the United States Postal Service, Office of Inspector General.
“Federal employees serve the public, not the other way around,” said Minkler. “Anyone who violates the public trust will be held accountable for their actions.”
The Information alleges that between December 6, 2013 and February 1, 2014, Thorpe, while working as a Postal Service employee of the Richland, Indiana, Post Office, took Postal Service money orders and used them to obtain funds to pay her personal living expenses. The loss to the Postal Service is approximately $5,286.
According to Assistant U.S. Attorney Kyle M. Sawa, who is prosecuting the case for the government, Thorpe faces a maximum of 10 years in prison and a $250,000 fine. An initial hearing will be scheduled in Evansville before a U.S. Magistrate Judge.
An Information is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Rochester Woman Pleads Guilty to Wire Fraud ConspiracyRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Nancy Cedeno, 40, of Rochester, NY, pleaded guilty before U.S. District Judge David G. Larimer, to conspiring to commit wire fraud. The charge carries a maximum penalty of 20 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Marisa J. Miller, who handled the case, stated that the defendant used online, e-commerce sites, including eBay.com and Amazon.com, to sell stolen merchandise to unwitting buyers. Cedeno used Rochester Consignment Broker, a consignment business in Rochester that she owns with her husband Brian Leonard, to purchase goods and merchandise that she knew to be stolen. The couple then advertised and sold or attempted to sell the items to buyers online, all while falsely representing that they had lawful ownership of the goods.
Charges against Brian Leonard are pending. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea was the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, and members of the Rochester Police Department under the direction of Chief Michael Ciminelli.
Sentencing is scheduled for December 17th, at 2:00 p.m. before Judge Larimer.Rio Rancho Man Pleads Guilty to Robbing Two Bank of Albuquerque Branches in July 2014Read the Press Release
ALBUQUERQUE – Joshua Abeyta, 21, of Rio Rancho, N.M., pleaded guilty today to two bank robbery charges.
Abeyta was arrested on July 10, 2014, on a criminal complaint charging him with robbing two Bank of Albuquerque branches located in Albertson’s supermarkets. Abeyta was charged with robbing the first bank branch, located at 4300 Ridgecrest Drive SE in Rio Rancho, on June 30, 2014, and the second, located at 10131 Coors Boulevard NW in Albuquerque, N.M., on July 8, 2014.
On July 24, 2014, Abeyta and a co-defendant, Angelica Donna Casados, 26, also of Rio Rancho, were indicted on July 24, 2014, and charged with two counts of bank robbery. Casados was arrested on July 29, 2014.
According to the court filings, Abeyta robbed the first bank branch on June 30, 2014, by presenting a bank teller with a note that included a warning that someone would get hurt if the teller did not comply with his demand for cash. Abeyta fled from the supermarket after obtaining cash from the teller. On July 8, 2014, Abeyta approached a bank teller at the second bank and again obtained cash from the teller after presenting a note demanding cash. Casados allegedly aided and abetted Abeyta in robbing the two bank branches.
During today’s hearing, Abeyta entered a guilty plea to the indictment and admitted robbing the two bank branches. He has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Abeyta faces a statutory maximum penalty of 20 years in prison.
Casados has entered a not guilty plea to the charges in the indictment and is scheduled for trial on Nov. 17, 2014. Charges in the indictment are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Albuquerque office of the FBI with assistance from the Rio Rancho Police Department and is being prosecuted by Assistant U.S. Attorney Kimberly A. Brawley.
Ringleader Jason Vitulano Pleads Guilty in Loan Modification Fraud Scheme Case & Scheme Managers SentencedRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, and Ronald J. Verrochio, Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, announce that Jason Vitulano, 39, of Boca Raton, pled guilty before U.S. District Judge Kenneth Marra to charges of conspiracy to commit mail fraud and wire fraud, and mail fraud, in violation of Title 18, United States Code, Sections 1349 and 1341.
Nine of the ten defendants charged in this case have now entered guilty pleas to the charges, which involved a scheme to bilk thousands of homeowners who were struggling to make their mortgage payments. Jeffrey Taylor, 40, North Lauderdale, is currently set for trial starting on November 10, 2014. Today, Judge Marra also sentenced two of the defendant managers, Neil Sack, 40, of Fort Lauderdale, and Brian Fleuridor, 30, of Delray Beach, to 30 months and 27 months in prison, respectively, to be followed by two years of supervised release.
Sentencing for defendant Vitulano is scheduled for December 5, 2014 in West Palm Beach. Vitulano faces up to 20 years in prison as to each of the two counts, plus fines of up to $250,000 or twice the pecuniary loss, as to each count.
According to the indictment and other documents filed in the case, between September 2008 and August 2009, the defendants operated boiler rooms that collected advance fees from distressed homeowners purportedly in exchange for obtaining loan modifications for the homeowners which were, with few exceptions, never provided.
The indictment alleges that defendant Vitulano was the organizer and operator of FHA All Day.com, Inc. and two other companies, Housing Assistance Law Center, Inc. and Safety Financial Corp., which operated the boiler rooms in Boca Raton and later in Deerfield Beach. According to the indictment and the factual proffers submitted in support of the guilty pleas, Robert Bacon was an operations manager who wrote and edited sales scripts, while the other eight defendants served as team managers of four to eight telemarketers who made thousands of phone calls to homeowners behind on their mortgage payments.
As alleged in the indictment, the defendants made numerous false statements to the homeowners including telling homeowners they had already been approved or pre-approved for a loan modification that would save the homeowner a specific amount off their mortgage payment, reducing the interest rate and often the principal balance on the mortgage loan. The defendants, according to the indictment, routinely told customers that they had been approved by an “underwriter” and that they had a team of “expert attorneys” who would finalize the loan modifications.
The indictment further alleges that the defendants targeted homeowners across the country who were facing foreclosure, falsely telling them that the company would stop the foreclosure process and that homeowners could stop making mortgage payments while they waited for the company to finalize their loan modifications. FHA All Day, as alleged in the indictment, moved its offices and changed the corporate name several times to avoid law enforcement scrutiny and to hamper consumer complaints. Through the use of these and other false representations, the defendants, according to the indictment, induced over 2,000 distressed homeowners to pay up front fees totaling approximately seven million dollars to the defendants.
Mr. Ferrer commended the investigative efforts of USSS and USPIS. This case is being prosecuted by Assistant U.S. Attorney Lauren Jorgensen.
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.
Ringleader in UPC Switching Fraud Scheme Sentenced to Five Years in Federal PrisonRead the Press Release
Tampa, FL – U.S. District Judge James D. Whittemore has sentenced Robert James Mercer (46, Tampa) to five years in federal prison for conspiracy to commit wire fraud. The Court also entered a money judgment in the amount of $130,000, which represents the proceeds of the conspiracy. Mercer pleaded guilty on June 19, 2014. He was sentenced on September 23, 2014.
According to court documents, from at least November 2013 through April 4, 2014, Mercer, along with his co-defendants and others, traveled to Wal-Mart stores in Florida, Alabama, Mississippi, Colorado, Texas, and elsewhere for the purpose of defrauding the retailer.
To facilitate the fraud, the co-conspirators, primarily Mercer, purchased prepaid debit cards from Green Dot and Wal-Mart using cash. By purchasing these prepaid cards at Wal-Mart, the conspirators received legitimate merchandise receipts showing high value cash purchases. The conspirators then altered these original receipts to make them appear as if they had resulted from a merchandise purchase. The fake receipts were then used to return items for cash.
In order to obtain the items, the conspirators purchased high value merchandise using counterfeited or altered Universal Product Codes (UPC). For example, with an altered UPC code, a whole-house water filtration system, which normally sold for hundreds of dollars, would ring up for $19. The conspirators then returned the items to a different Wal-Mart store, using a counterfeited receipt, and obtained cash refunds for the actual retail price of the items.
The co-conspirators in this case confirmed that Mercer supervised them, controlled the proceeds of the fraud, and paid the others for their roles in this scheme. The loss to Wal-Mart is estimated at almost $200,000.
Four others were also charged in this case. Luis Schomaker was charged by a criminal complaint with conspiracy to commit wire fraud. Co-conspirators David Dunn, Sandra Walker, and Michael Odhiambo have each pleaded guilty to conspiracy to commit wire fraud and will be sentenced at a later date.
This case was investigated by the United States Secret Service and the Pinellas County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Mandy Riedel.
Press AdvisoryRead the Press Release
U.S. ATTORNEY GOODWIN, U.S. MARSHAL FOSTER AND OFFICIALS WITH STATE POLICE TO ANNOUNCE RESULTS OF SEX OFFENDER REGISTRY CHECKS IN KANAWHA COUNTY
Charleston, W.Va. – U. S. Attorney Booth Goodwin will join U.S. Marshal John Foster and West Virginia State Police officials to announce the results of a sex offender registry check operation in Kanawha County.
WHERE: U.S. Marshal’s Office
Robert C. Byrd Courthouse
300 Virginia Street East
Charleston, WVWHEN: 10 A.M., FRIDAY, SEPTEMBER 26, 2014
Click here to view the Press Conference Announcement
Pittsburgh Jeweler Sentenced for Evading Federal Currency Reporting RequirementsRead the Press Release
PITTSBURGH - A Pittsburgh resident has been sentenced in federal court to three years of probation, six months home confinement, and 100 hours of community service, on his conviction of failing to file a report of currency received by a non-financial business, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Efraim Tuti, 42.
According to information presented to the court, Tuti, who was engaged in the jewelry business known as 2T Jewelers on Fifth Avenue in Pittsburgh, for the purpose of evading federal reporting requirements, failed to file an Internal Revenue Service Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, following the receipt of approximately $11,000 in currency as partial payment for a diamond ring purchased by an undercover IRS agent for a total of $22,000. Tuti acknowledged during the plea hearing that he also sold a $13,000 pair of earrings to the undercover agent, after which he failed to file the IRS Form 8300, as required. On Feb. 22, 2013, $125,070 was seized by the IRS during the execution of a search warrant at 2T Jewelers. Tuti agreed to forfeit the money to the United States as part of his entry of a guilty plea.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service, Criminal Investigation for the investigation leading to the prosecution of Tuti.
Pine Lawn Mayor Arrested on Charges of ExtortionRead the Press Release
St. Louis, MO – The mayor of Pine Lawn, Missouri, SYLVESTER CALDWELL, has been arrested as a result of an indictment charging him with extortion of cash payments from the owner of a local towing company.
Caldwell, Pine Lawn, was indicted by a federal grand jury on one felony count of interference with commerce by extortion. He was arrested by FBI agents Thursday. He appeared in court late yesterday afternoon and was released on bond. Caldwell is scheduled for arraignment Monday, September 29, at 9:30 a.m.
According to the indictment, Mayor Caldwell exercised authority over which towing companies provided the towing services for the City of Pine Lawn. The indictment alleges that between December 2013 and April 2014, Caldwell extorted cash payments from the owner of one local towing company, referred to in the indictment as "John Doe," in exchange for directing the Pine Lawn Police Department to use Doe’s towing company.
If convicted, this charge carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Philadelphia Man Charged with Theft of Government FundsRead the Press Release
Felix R. Pinero, 62, of Philadelphia, Pennsylvania, was charged today by Information with one count of theft of Government funds, and one count of social security fraud, announced United States Attorney Zane David Memeger. The information alleges that from in or about November 1986 to in or about August 2011, Felix R. Pinero implemented a scheme to defraud the Social Security Administration by concealing that he was working and later receiving disability benefits while simultaneously receiving additional disability benefits under a different name and social security number for a period of almost 25 years, resulting in total losses to the government of approximately $117,135.25.
If convicted the defendant faces a maximum possible sentence of fifteen years incarceration, a $500,000 fine, three years supervised release, and restitution of $117,135.25.
The case was investigated by the Social Security Administration’s Office of the Inspector General and is being prosecuted by Special Assistant United States Attorney Thomas Moshang III.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to read the informationUNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICT of PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Owner of Atlanta Income Tax Preparation Firm Sentenced for Nearly $7 Million Refund FraudRead the Press Release
ATLANTA - Anita R. Ford, a/k/a Anita R. Dixon, has been sentenced to four years and three months in prison for preparing and filing approximately $7 million worth of fraudulent personal income tax returns.
“This defendant filed thousands of fraudulent tax returns with the IRS over five years, seeking millions of dollars in fraudulent refunds from the U.S. Treasury,” said United States Attorney Sally Quillian Yates. “On one of those occasions, the taxpayer was not her client, but was instead an undercover IRS agent. This conviction should make abusive return preparers think twice before attempting to rob the U.S. Treasury.”
“IRS special agents work year round to investigate and root out dishonest return preparers,” stated IRS Criminal Investigation, Special Agent in Charge, Veronica F. Hyman-Pillot. “The message this case sends is that participation in refund fraud schemes does not pay and those who do will be prosecuted. Ms. Ford violated the confidence of her clients, stole from the American taxpayer and today she is being held responsible for her actions.”
According to United States Attorney Yates, the charges and other information presented in court: Between 2004 and 2012, Ford owned and operated Georgia Peach Financial & Fast Tax Service (“Georgia Peach”), an Atlanta, Ga., personal income tax preparation business. During that time Ford prepared and electronically filed (“e-filed”) thousands of Form 1040 individual income tax returns with the IRS that intentionally misstated her clients’ income in order to generate fraudulent refunds. In particular, Ford made up fake side businesses with fake income and fake expenses, and then attached false Schedule C’s (“Profit or Loss from Business”) to the clients’ tax returns showing the made up income and expenses. This had the effect of off-setting her clients’ income tax liability from their real salaries, as reflected in Forms W2 (“Wage & Tax Statement”) issued by their real employers, generating false credits and refunds.
In March 2011, a Special Agent of IRS-CI visited Georgia Peach in an undercover capacity, posing as a taxpayer seeking to have a return prepared. Ford began preparing a tax return in the agent’s cover identity, based on a Form W2 in the cover identity, and informed the agent that they would owe approximately $200. In truth, the agent would have been due a refund of almost $400. Ford then created a fictitious Schedule C for a fake beauty salon business, with $30,000 in fake business expenses, generating a fraudulent refund of over $4,000, and e-filed the completed tax return with the IRS. To prepare and e-file the return, Ford charged a fee of $510. Ford did not provide a copy of the tax return to the undercover agent or review it with the undercover agent before e-filing it.
The returns identified in the scheme sought fraudulent refunds ranging from several thousand dollars to tens of thousands of dollars, including at least one fraudulent refund of more than $30,000. The returns sought a total of $6,934,337.92 in fraudulent refunds for Ford’s clients, portions of which Ford retained as tax preparation fees.
Ford, 50, of Jonesboro, Ga., was sentenced by U.S. District Judge Timothy C. Batten, Sr., to four years, three months in federal prison to be followed by two years of supervised release, and ordered to pay restitution to the United States Treasury in the amount of $5,732,021.50. Ford was convicted of these charges on December 3, 2013, after she pleaded guilty.
This case was investigated by Special Agents of IRS-Criminal Investigation.
Assistant United States Attorney David M. Chaiken prosecuted the case.
The IRS would like to remind people that while most preparers provide excellent service to their clients, the IRS urges taxpayers to be very careful when choosing a tax preparer. Taxpayers should be as careful as they would be in choosing a doctor or a lawyer. It is important to know that even if someone else prepares a tax return, the taxpayer is ultimately responsible for all the information on the tax return.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Orlando Man Sentenced to More Than 10 Years for Cocaine TraffickingRead the Press Release
Tampa, Florida – U.S. District Judge Richard A. Lazzara today sentenced Gerald Robinson (41, Orlando) to ten years and one month in federal prison for conspiring with others to distribute cocaine. He pleaded guilty on May 30, 2014.
According to court documents and evidence presented at sentencing, Robinson was a kilogram-level cocaine distributor in the Orlando area. In 2010 and 2011, he distributed approximately 40 kilograms of cocaine. Robinson’s source of supply, Earl Hampton, was previously convicted as part of this investigation. He was sentenced to 30 years’ imprisonment by U.S. District Judge Susan C. Bucklew on June 19, 2013.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Metropolitan Bureau of Investigation, with assistance from the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement's Homeland Security Investigations, the Clearwater Police Department, and the Lee County Sheriff's Office, as part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation's illegal drug supply. The case was also investigated as part of ATF’s Frontline Strategy. It was prosecuted by Assistant United States Attorney Christopher F. Murray.
Operator of Saltwater Disposal Well Pleads Guilty to Multiple Felony Charges in Connection with Operation of the WellRead the Press Release
WASHINGTON – Nathan R. Garber, 45, of Kalispell, Montana, pleaded guilty in federal court in Bismarck to eleven felony charges stemming from the operation of a saltwater disposal well near Dickinson, in Stark County, North Dakota, the Justice Department announced.
Garber pleaded guilty to one count of conspiracy to violate the Safe Drinking Water Act and defraud the United States. He also pleaded guilty to five counts of violating the Safe Drinking Water Act, two counts of making false statements, two counts of falsification of records and one count of concealment or cover up of a tangible object.
The well, named the Halek 5-22, received “produced water” constituting “brine and other wastes” commonly and generically referred to as “saltwater.” “Saltwater” in this context covers a wide array of drilling waste fluids, including hydraulic fracturing fluid, which is water combined with chemical additives such as biocides, polymers and “weak acids.” The EPA has stressed that this water is often saltier than seawater and can “contain toxic metals and radioactive substances.”
“Every aspect of domestic energy extraction, including the disposal of wastewater, must accord with the nation’s environmental laws that protect air, water and soil from contamination,” said Sam Hirsch, the Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “The American people expect nothing less than safe, responsible and legal behavior from those involved in oil and gas development in the Bakken and elsewhere. The Justice Department will vigorously prosecute those who violate this trust and the law.”
“The convictions secured today on 11 felony counts underscores the seriousness of the conduct here,” said U.S. Attorney Timothy Purdon of the District of North Dakota. “Any time anyone in the Bakken oil boom region puts our water supplies at risk for contamination by intentionally breaking the laws in place to protect that water, the North Dakota U.S. Attorney’s Office, the Department of Justice and our partners at Environmental Protection Criminal Investigation Division will use every tool at our disposal to ensure that these offenders are brought to justice. I want to particularly commend the Environmental Protection Agents based in Helena, Montana who worked this case. Their commitment to this investigation, despite the fact that it being an eight hour one-way drive from their office, never wavered. Their commitment to make sure that this complex investigation was handled with the professionalism and skill it needed deserves special recognition and underscores the importance of ensuring that the Bakken region has access to these skilled Agents on a permanent basis.”
“As oil and natural gas development continues, it must be done in a way that ensures drilling byproducts are disposed of safely and legally,” said Special Agent in Charge Jeffrey Martinez of EPA’s criminal enforcement program in North Dakota. “The defendant’s disregard of environmental regulation under the Safe Drinking Water Act put human health and the environment at serious risk. Today’s plea demonstrates that EPA and its law enforcement partners are committed to protecting North Dakota’s precious water sources and the communities that rely upon them.”According to an agreed-upon factual statement filed in court, Garber admitted to conspiring with others in a number of coordinated and illegal acts. For instance, Garber injected saltwater into the well without first having the state of North Dakota witness a test of the well’s integrity, causing a regulator to determine that there was no assurance as to the integrity of the well and that “the fluid could be going anywhere.” Garber also violated a February 2012 order from the state to stop injecting until a well integrity test was done. When questioned by the state about these injections, Garber made false statements in a March 6, 2012 email where he denied that these injections occurred.
The well failed a pressure test on Feb. 2, 2012, and Garber continued to inject saltwater even though he knew that the well did not have integrity and thus posed an increased risk of contaminating ground water.
Further, Garber moved a device called a “packer” up the wellbore in violation of the well’s permit, without first getting approval from the state. A properly placed packer is an essential device to maintaining integrity of the well and ensuring wastewater does not escape into surrounding soil and groundwater.
Then, Garber gave false information to a state inspector regarding the depth of the packer.
A search warrant was executed at the well on Nov. 20, 2013, and it was confirmed that the packer had been moved up in the wellbore and was significantly higher than the depth that had been initially represented by Garber. Despite illegally moving the packer on Feb. 14, 2012, Garber continued to inject saltwater into the well until on or about March 5, 2012, when a state employee shut the well in.
The case was investigated by the U.S. Environmental Protection Agency’s Criminal Investigation Division. Significant cooperation was provided by the North Dakota Industrial Commission (NDIC). The case is being prosecuted by the United States Attorney’s Office for the District of North Dakota and the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.
- Office Manager Sent to Prison for Defrauding Former Employer of More Than $400,000
North Smithfield Construction Company Owner Sentenced for Tax EvasionRead the Press Release
PROVIDENCE, R.I. –Paul F. Pytko, 49, owner of Pytko Construction Corp. in North Smithfield, R.I., was sentenced today to 3 years probation, to include 20 weekends of incarceration at the Donald W. Wyatt Detention Facility in Central Falls, for concealing the sale of a company asset that he agreed to sell in order to satisfy taxes owed to the IRS, announced United States Attorney Peter F. Neronha, William P. Offord, Special Agent in Charge of IRS Criminal Investigation and Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Pytko to pay restitution to the IRS in the amount of $611,320. Pytko pleaded guilty in June 2014 to one count of conspiracy to defraud the United States and one count of tax evasion.
At the time of his guilty plea, Pytko admitted to the court that he had agreed to sell a large piece of construction equipment to pay down some of the more than $600,000 in debt he owed to the IRS in unremitted employee withholding taxes, penalties and interest incurred for tax periods ending in September 2003 through June 2006.
Pytko admitted to the court that he sold the piece of equipment, but that none of the proceeds were paid to the IRS as was promised. Pytko admitted to the court that some of the funds were wired into a third party account and then disbursements made to pay for business expenses and for his own personal use.
The case was prosecuted by Assistant U.S. Attorney Richard W. Rose, with the assistance of Assistant U.S. Attorney John P. McAdams.
The matter was investigated by IRS Criminal Investigation and the FBI.
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[email protected]New York Man Sentenced to Twelve Years in Prison for Defrauding Would-Be BorrowersRead the Press Release
ATLANTA - Kenneth J. Enrico has been sentenced to 12 years in prison for posing as a mortgage broker to defraud over 300 borrowers nationwide out of $1.2 million in application fees for loans that he could not close.
“This defendant preyed on prospective home owners across the country that were pursuing the American dream of owning their own home,” said United States Attorney Sally Quillian Yates.
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The facts of this case clearly illustrate that mortgage fraud is not a victimless crime. Because of the extensive harm done in these types of cases, the FBI will continue to aggressively identify, investigate, and present for prosecution those individuals involved.”
According to United States Attorney Yates, the charges and other information presented in court: From 2009 until approximately October 2012, Enrico held himself out as a mortgage or real estate loan broker, doing business as Enrico Corporation, in Bohemia, N.Y. Enrico purported to offer a residential mortgage loan program that would finance as much as 105% of a home purchase at rates as low as 4.99%. Enrico marketed his loan program to people who had sufficient income to make the monthly payment, regardless of their credit score. He required prospective borrowers to pay him an up-front fee of $2,500 or more per loan, which supposedly was to cover the costs of processing and approving the loan application that borrowers submitted. Enrico recruited brokers around the country, including in the Atlanta area, to market his fraudulent loan program nationwide. Enrico incentivized the brokers by directing them to tack on extra application fees for themselves and promising them profits from the promised loan closings.
Enrico and his brokers received more than $1.2 million in application fees from more than 300 individuals across the country. Although many of these individuals received a letter informing them that they had been approved for a loan, Enrico never closed a single loan. In fact, Enrico lacked any source of funding for the loan program that he was marketing and appears to have done little or no work to obtain any such funding. Enrico operated out his apartment, equipped with a telephone and a fax machine. When the FBI executed a search warrant on his apartment in October 2012, special agents found boxes of loan applications stacked on the floor of Enrico’s closet. Enrico had removed the checks from borrowers and brokers from such boxes and negotiated or cashed such checks. Agents also found a total of $198,000 in cash in a safe, and other locations in Enrico’s apartment.
When buyers and brokers began questioning why loans never closed, Enrico gave numerous excuses and continued to promise that loans would close once various issues were resolved. While prospective borrowers lost fees paid to Enrico and the brokers, many also lost additional funds (such as earnest monies and fees paid for appraisals or inspections) when their real estate purchase fell through after Enrico’s failure to close their loan. Even after being indicted, Enrico continued to solicit loan application fees for loans that he could not close.
Enrico, 47, of Bohemia, N.Y., has been sentenced to 12 years in prison to be followed by three years of supervised release. The Court left restitution open for a period not to exceed 90 days to facilitate the final identification of Enrico’s victims and their loss amounts. Enrico was found guilty of 17 counts of conspiracy, mail fraud, and wire fraud by a jury on March 28, 2014.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorneys Doug Gilfillan and Christopher Huber prosecuted the case.
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.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
New Jersey Woman Pleads Guilty to Role in Stolen Identity Tax Refund SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ARACELYS PICHARDO, 26, of Jersey City, New Jersey, waived her right to indictment and pleaded guilty today before U.S. Magistrate Judge Donna F. Martinez in Hartford to one count of theft of government property.
According to court documents and statements made in court, PICHARDO obtained fraudulent U.S. Treasury tax refund checks through her former boyfriend, Carlos Jose Luis, also known as Jose Quilestorres. The checks were payable to individuals from Puerto Rico whose identities had been stolen and in whose names tax returns generating the refund checks had been filed by various scheme participants. Between November 2011 and February 2012, PICHARDO provided at least 21 of these fraudulently obtained tax refund checks to Carlos Mateo. Mateo gave the checks to Jeovany Rios, who cashed them at credit union branches in Bridgeport, Milford and Danbury with the assistance of Angel Castellano, a teller at the credit union. Rios returned most of the funds to Mateo after taking a portion for himself and Castellano. Mateo then gave a majority of the funds he received to PICHARDO who passed the money on to Luis. Luis paid PICHARDO for her role in helping to transact the checks.
In total, PICHARDO provided Mateo with 21 U.S. Treasury tax refund checks totaling $137,860.70.
PICHARDO is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on December 29, 2014, at which time she faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
Mateo, Rios, and Castellano, all of Bridgeport, have pleaded guilty to charges related to this scheme.
In 2013, Luis pleaded guilty in both the Southern District of New York and the District of New Jersey, admitting that he was a leader of a scheme to steal more than $10 million in fraudulent federal tax refund checks. He is currently serving a 108-month federal prison term. (http://www.justice.gov/usao/nys/pressreleases/March14/QuilestorressentencingPR.php)
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]