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7 November 2014
Nebraska Resident Sentenced to 40 Years in Prison for Conspiracy to Distribute Methamphetamine and Carrying a FirearmRead the Press Release
COUNCIL BLUFFS, IA- On November 5, 2014, Corey Allen Brooks, a 43 year-old resident of Omaha, Nebraska, was sentenced by United States District Court Judge John Jarvey to 30 years in prison for conspiracy to distribute methamphetamine, and a consecutive 10 years for possession of a firearm during the conspiracy to distribute methamphetamine, announced United States Attorney Nicholas A. Klinefeldt. Brooks’ term of imprisonment is to be followed by 10 years of supervised release.
The charges resulted from a lengthy investigation into drug trafficking by Brooks in Nebraska and Iowa. It was determined through the investigation that Brooks arranged for large quantities of methamphetamine (approximately 30 kilograms) to be delivered in Omaha, Nebraska, and Council Bluffs, Iowa, between March and September 2011. During the course of the conspiracy, Brooks carried a firearm to protect the operation from interference from outside parties. On January 6, 2014, Brooks pled guilty to both charges.
Additional members of the drug trafficking organization run by Brooks that have also been sentenced include:
Cliff Ellis was sentenced on February 15, 2013, by United States District Court Judge Stephen Rose to 175 months in prison for conspiracy to distribute methamphetamine, and a consecutive 60 months in prison for possession of a firearm during the conspiracy, to be followed by five years of supervised release.
Khodie Maves was sentenced on March 25, 2014, by United States District Court Judge John Jarvey to 80 months in prison, to be followed by 5 years of supervised release, for conspiracy to distribute methamphetamine.
Jason Hanan was sentenced on March 25, 2014, by United States District Court Judge John Jarvey to 120 months in prison for conspiracy to distribute methamphetamine and a consecutive 120 months in prison for possession of a firearm during the conspiracy, to be followed by five years of supervised release.
Roy Gage was sentenced on March 25, 2014, by United States District Court Judge John Jarvey to 100 months in prison for conspiracy to distribute methamphetamine and a consecutive 60 months in prison for possession of a firearm during the conspiracy, to be followed by five years of supervised release.
James Surber was sentenced on March 25, 2014, by United States District Court Judge John Jarvey to 60 months in prison for conspiracy to distribute methamphetamine, to be followed by five years of supervised release.
Anthony Good was sentenced on May 29, 2014, by United States District Court Judge John Jarvey to 140 months in prison for conspiracy to distribute methamphetamine and a consecutive 120 months in prison for possession of a firearm during the conspiracy, to be followed by five years of supervised release.
Chris Tietz was sentenced on July 1, 2014, by United States District Court Judge John Jarvey to 188 months in prison for conspiracy to distribute methamphetamine, to be followed by five years of supervised release.
The investigation was conducted by the Southwest Iowa Narcotics Task Force, Mills County Sheriff’s Office, Council Bluffs, Iowa, Police Department, Omaha, Nebraska, Police Department, the Iowa Division of Narcotic Enforcement, and the United States Secret Service. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Navajo Woman from Colorado Pleads Guilty to Federal Child Abuse Charge in New MexicoRead the Press Release
ALBUQUERQUE – Loreena Ann Yazzie, 27, an enrolled member of the Navajo Nation who resides in Durango, Colo., pled guilty this morning in federal court in Albuquerque, N.M., to a child abuse charge.
Yazzie was arrested on April 7, 2014, on a criminal complaint alleging an assault charge. According to the criminal complaint, Yazzie injured an infant who was a passenger in a vehicle she was driving when Yazzie caused a single-car collision by falling asleep at the wheel. Yazzie allegedly was intoxicated at the time of the collision. The collision occurred on April 2, 2014, south of Shiprock, N.M., which is located within the Navajo Indian Reservation. Yazzie subsequently was indicted and charged with assault resulting in serious bodily injury and child abuse.
During today’s plea hearing, Yazzie entered a guilty plea to the child abuse charge and admitted placing a child in a situation that endangered the child’s life or health.
Under the terms of the plea agreement, Yazzie will be sentenced to a term of probation to be determined by the court. Yazzie’s sentencing hearing has yet to be scheduled.
This case was investigated by the Farmington Resident Agency of the FBI’s Albuquerque Division and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Kyle T. Nayback is prosecuting the case.Navajo Man Sentenced to Federal Prison for Involuntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Fanderick Chiquito, 23, an enrolled member of the Navajo Nation who resides in Upper Fruitland, N.M., was sentenced to 16 months in federal prison for his involuntary manslaughter conviction. Chiquito will be on supervised release for three years after completing his prison sentence.
Chiquito was arrested on Dec. 31, 2013, on a criminal complaint alleging that he killed a Navajo woman on Dec. 23, 2013, while driving under the influence of alcohol in a location within the Navajo Indian Reservation. According to court filings, Chiquito caused a three-vehicle collision near mile marker 25 on Navajo Route 36 when he tried to pass a line of vehicles and struck another vehicle head on while driving in the oncoming lane. Both vehicles spun out of control on impact and one of the vehicles struck a third vehicle. The victim, a passenger in Chiquito’s vehicle, died of internal injuries she sustained during the collision. After Chiquito was treated for minor injuries, he was arrested on tribal charges based on blood test results indicating a .29 BAC.
On Jan. 22, 2014, Chiquito was charged with involuntary manslaughter in federal court. The indictment alleged that Chiquito killed the victim while driving a vehicle under the influence of intoxicating liquor and operating a vehicle carelessly and in wanton disregard for the rights and safety of others.
On April 1, 2014, Chiquito pleaded guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Farmington Resident Agency of the FBI’s Albuquerque Division and the Shiprock office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Paul H. Spiers.
Natrona Heights Man Sentenced to Five Years in Prison for Possessing Pornographic Images and Videos of ChildrenRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 63 months imprisonment, to be followed by 10 years of supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Terry Robert Cousins, Jr., 34, of Natrona Heights, Pa.
According to information presented to the court, in and around January of 2012, Cousins knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Allegheny County Police Department for the investigation leading to the successful prosecution of Cousins.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Moretown Man Sentenced to 20 Months Imprisonment for Unlawful Possession of A Firearm by A FelonRead the Press Release
The Office of the United States Attorney for the District of Vermont stated Chief Judge Christina Reiss, of the United States District Court in Burlington, sentenced Dennis Gaskin, 28, of Moretown, Vermont to 20 months imprisonment for possessing a firearm after having been convicted of a felony. Gaskin’s prior felony was a 2004 burglary conviction in Connecticut. Judge Reiss also sentenced him to three years supervised release, which follows his jail sentence. The firearms offense was subject to a maximum term of imprisonment of ten years.
This matter began after Vermont State Police investigated a potential domestic assault at Deer Run Lane in Moretown on November 21, 2013. According to court records, Shannon Simms, who is Gaskin’s girlfriend and mother of his infant son, locked herself in her bedroom with the baby and called her grandmother for help after Gaskin had assaulted her by pushing and slamming her to the floor during an argument and putting her in a head-lock for several seconds. The Vermont State Police went to the residence, arrested Gaskin, and eventually recovered a Ruger .22 caliber assault style rifle with a high capacity magazine that belonged to Gaskin. The State charged Gaskin with domestic assault (state case still pending). Meanwhile, in March 2014, a federal grand jury indicted Gaskin on unlawfully possessing a firearm after sustaining a felony conviction.
Gaskin pled guilty to the federal firearms offense. At the recent sentencing hearing, the Government argued for the advisory Sentencing Guidelines sentence of 37 months. Gaskin’s attorney asked for a time served sentence (eight months). In arguing that Gaskin was a danger to the community, the Government cited to domestic abuse statistics, also cited by the U.S. Supreme Court, that “when a gun was in the house an abused woman was 6 times more likely than other abused woman to be killed.” The Government also argued: “A felon with a firearm is unacceptable and illegal. A felon, who abuses a woman, and possesses a firearm, is downright dangerous.”
The United States is represented by Assistant U.S. Attorney Joseph Perella while the defendant is represented by Assistant Federal Public Defendant David McColgin, Esq. This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Vermont State Police.More than 400 .Onion Addresses, Including Dozens of 'Dark Market' Sites, Targeted as Part of Global Enforcement Action on Tor NetworkRead the Press Release
Federal law enforcement has taken action against over 400 Tor hidden service .onion addresses, including dozens of “dark market” websites, that were offering a range of illegal goods and services for sale on the “Tor” network, a special network of computers on the Internet designed to conceal the locations of individuals using it.
The website addresses and computer servers hosting these websites were seized yesterday as part of a coordinated international law enforcement action involving the Justice Department’s Criminal Division, U.S. Attorney’s Office for the Southern District of New York, and law enforcement agencies of approximately 16 foreign nations working under the umbrella of Europol’s European Cybercrime Centre (EC3) and Eurojust. This action follows the arrest on Nov. 5, 2014, of Blake Benthall, aka “Defcon,” for charges brought in the Southern District of New York for his alleged role in operating the Silk Road 2.0 website. This action constitutes the largest law enforcement action to date against criminal websites operating on the “Tor” network.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Preet Bharara of the Southern District of New York, FBI Executive Assistant Director Robert Anderson and Executive Associate Director Peter Edge of Homeland Security Investigations (HSI) made the announcement.
“It is a plain fact that criminals use advanced technology to commit their crimes and conceal evidence – and they hide behind international borders so they can stymie law enforcement,” said Assistant Attorney General Caldwell. “But the global law enforcement community has innovated and collaborated to disrupt these ‘dark market’ websites, no matter how sophisticated or far-flung they have become.”
“As illegal activity online becomes more prevalent, criminals can no longer expect that they can hide in the shadows of the ‘dark web,’” said U.S. Attorney Bharara. “We shut down the original Silk Road website and now we have shut down its replacement, as well as multiple other ‘dark market’ sites allegedly offering all manner of illicit goods and services, from firearms to computer hacking. In coordination with domestic and international law enforcement agencies, we will continue to seize websites that promote illegal and harmful activities, and prosecute those who create and operate them.”
“Working closely with domestic and international law enforcement, the FBI and our partners have taken action to disrupt several websites dedicated to the buying and selling of illegal drugs and other unlawful goods,” said FBI Executive Assistant Director Anderson. “Combating cyber criminals remains a top priority for the FBI, and we continue to aggressively investigate, disrupt, and dismantle illicit networks that pose a threat in cyberspace.”
“Underground websites such as Silk Road and Silk Road 2 are like the Wild West of the Internet, where criminals can anonymously buy and sell all things illegal,” said HSI Associate Director Edge. “We will continue to use all of our resources and work closely with our U.S. and international law enforcement partners to shut down these hidden black market sites, and hold criminals accountable who use anonymous Internet software to peddle their illegal activities.”
According to public documents, the seizure operation targeted the Silk Road 2.0 website and more than 400 hidden services related to dozens of other “dark market” websites that are only accessible to operating on what is known as “The Onion Router” or “Tor” network, a part of the Internet designed to make it practically impossible to physically locate the computers hosting or accessing websites on the network. These sites were all operating online black markets, openly advertising on their home pages and offering to sell a variety of illicit goods and services to customers in the United States and elsewhere. The advertised goods and services included, among other things: illegal narcotics; firearms; stolen credit card data and personal identification information; counterfeit currency; fake passports and other identification documents; and computer-hacking tools and services.
The “dark market” websites were designed to facilitate illicit commerce by providing anonymity to users. The sites were only accessible to users of the Tor anonymizing network. The sites also accepted payments for their illicit goods and services in bitcoin or similar virtual currency designed to be as anonymous.
The operation involved the seizure of over 400 Tor website addresses – known as “.onion” addresses – as well as the servers hosting them. Examples of the websites seized in the operation include:
- “Pandora” (pandora3uym4z42b.onion), “Blue Sky” (blueskyplzv4fsti.onion), “Hydra” (hydrampvvnunildl.onion), and “Cloud Nine” (xvqrvtnn4pbcnxwt.onion), all of which were dark markets similar to Silk Road 2.0, offering an extensive range of illegal goods and services for sale, including drugs, stolen credit card data, counterfeit currency, and fake identity documents.
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“Executive Outcomes” (http://iczyaan7hzkyjown.onion), which specialized in firearms trafficking, with offerings including assault rifles, automatic weapons, and sound suppressors. The site stated that it used “secure drop ship locations” throughout the world so that “anonymity [was] ensured” throughout the shipping process, and that all serial numbers from the weapons it sold were “remove[d] . . . and refill[ed] with metal.”
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“Fake Real Plastic” (http://igvmwp3544wpnd6u.onion), which offered to sell counterfeit credit cards, encoded with “stolen credit card data” and “printed to look just like real VISA and Mastercards.” The cards were “[g]uaranteed to have at least $2500 left on [the] credit card limit” and could be embossed with “any name you want on the card.”
- “Fake ID” (http://23swqgocas65z7xz.onion), which offered fake passports from a number of countries, advertised as “high quality” and having “all security features” of original documents. The site further advertised the ability to “affix almost all kind of stamps into the passports.”
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“Fast Cash!” (http://5oulvdsnka55buw6.onion) and “Super Notes Counter” (http://67yjqewxrd2ewbtp.onion), which offered to sell counterfeit Euros and U.S. dollars in exchange for Bitcoin.
This ongoing investigation is being conducted by the FBI and its New York Special Operations and Cyber Branch, along with its Washington, Philadelphia and Indianapolis Field Offices, and by HSI and its Cyber Crimes Center and Chicago-O’Hare Field Office, with assistance from Drug Enforcement Administration’s (DEA) New York Organized Crime Drug Enforcement Strike Force, which comprises agents and officers of the DEA, the Internal Revenue Service, the New York City Police Department, HSI, the New York State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Secret Service, the U.S. Marshals Service, the Office of Foreign Assets Control, and the New York Department of Taxation. The law enforcement authorities of Bulgaria, Czech Republic, Finland, France, Germany, Hungary, Ireland, Latvia, Lithuania, Luxembourg, Netherlands, Romania, Spain, Sweden, Switzerland, and the United Kingdom, whose actions have been coordinated through Eurojust and Europol’s EC3, provided substantial assistance.
The Criminal Division’s Computer Crime and Intellectual Property, Organized Crime and Gang, and Narcotic and Dangerous Drug Sections and the U.S. Attorney’s Office for the Southern District of New York are prosecuting these cases. Substantial assistance was provided by the U.S. Attorneys’ Offices for the District of Columbia, the Eastern District of Washington, the Eastern District of Louisiana, the Western District of New York, the Northern District of Texas, and the Northern District of Georgia. The Criminal Division’s Office of International Affairs and Asset Forfeiture and Money Laundering Section provided substantial assistance.
Minot Man Sentenced for Possession of a Firearm and Ammunition by a Convicted FelonRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on November 7, 2014, Brian Lamont Sweeney, 47, Minot, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of possession of firearm and ammunition by a convicted felon. Sweeney was convicted of the charge by a federal jury on June 19, 2014.
Judge Hovland sentenced Sweeney to serve seven years in federal prison, to be followed by three years of supervised release. Sweeney was ordered to pay a $100 special assessment to the Crime Victim’s Fund.
On October 14, 2013, in Minot, North Dakota, Sweeney was stopped for a traffic violation. After smelling the odor of marijuana coming from the vehicle, a law enforcement search resulted in the discovery of a loaded .380 caliber handgun.
Sweeney was prohibited from possessing either a firearm or ammunition by virtue of multiple felony convictions, including possession of a controlled substance, possession of drug paraphernalia, aggravated assault, and felon in possession of a firearm. He was on probation with the State of North Dakota at the time of the offense.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Minot Police Department, the Ward County Sheriff’s Office and the North Dakota Department of Corrections and Rehabilitation – Parole and Probation Services.
Assistant U.S. Attorney David Hagler prosecuted the case.
Mexican National Pleads Guilty to Money Laundering in Connection with Federal Wireless Telephone Subsidy ProgramRead the Press Release
Oklahoma City, Oklahoma – OSCAR ENRIQUE PEREZ-ZUMAETA, of Cancun, Mexico, pled guilty today to laundering the proceeds of a scheme to defraud the Federal Communications Commission, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. Perez-Zumaeta’s guilty plea comes five months after ICON Telecom, Inc., and its owner, Wes Yui Chew, entered guilty pleas in the same investigation and agreed to forfeit more than $27 million taken illegally from the FCC’s Lifeline Program.
"Unfortunately, people decide to defraud well-intentioned government programs for personal benefit," said Coats. "The FCC Lifeline program is intended to help low-income Americans have access to telephone services, and this individual exploited the program for his own, significant financial gain. I applaud the FCC-Inspector General, FBI and IRS Criminal Investigation for their exemplary work in this case, and urge the public to report fraud relating to all government programs."
FCC Chairman Tom Wheeler said, "I applaud the efforts of the United States Attorney’s Office to bring to justice the criminals guilty of defrauding the Lifeline program designed to assist low-income Americans to afford basic phone services. Today’s action could not be accomplished without the work of the FCC’s Office of Inspector General. Waste, fraud, and abuse of the program is simply unacceptable. The Commission will remain vigilant in our work to root out abuses and continue to work with our partners in the U.S. Attorney’s Office, IRS and the FBI."
The current Lifeline Program, which was created in 1985, furthers the FCC’s mission to provide all Americans with access to a basic level of telephone service. Since 2005, Lifeline has provided subsidies to participating telephone companies not only for landline service, but also for wireless service for qualifying low-income customers. The Universal Service Administrative Company ("USAC") administers the Lifeline Program on behalf of the FCC and under detailed federal regulations. To pay for the program, USAC collects fees from telephone companies, which often pass the fees on to customers as "universal service charges" on monthly telephone bills.
Most participating wireless telephone companies receive a subsidy of $9.25 per month for each qualifying low-income customer. If a qualifying customer lives on "tribal lands," however, the company receives $34.25 per customer. Much of Oklahoma includes tribal lands that qualify for the higher monthly subsidy.
Before receiving reimbursement, participating telephone companies file forms with the FCC that report the number of Lifeline eligible customers they have served. Companies must also file annual reports by January 31 to certify that customers who received Lifeline service at an earlier date remain eligible for the program.
ICON Telecom, owned exclusively by Chew, participated in the wireless Lifeline Program from July 2011 until September 2013. In November 2011, ICON reported fewer than 12,000 wireless customers who qualified for the Lifeline program. By November 2012, that number had grown to 135,364. Although it had fewer than ten full-time employees, ICON received a total of $58,283,329 through the Lifeline Program during 2011, 2012, and 2013.
An indictment filed against Perez-Zumaeta on June 3, 2014, alleges that he owned and managed PSPS Sales LLC, a California entity that recruited low-income individuals to apply for Lifeline service through ICON. According to the indictment, ICON paid over one million dollars to PSPS Sales from December 2011 through April 2013. Perez-Zumaeta is charged with directing PSPS Sales workers to enroll fictitious customers for ICON by using phone book listings and forging Lifeline application forms. He also allegedly directed workers in Mexico to falsify approximately 40,000 Lifeline recertification forms for use in ICON’s fraudulent scheme.
Perez-Zumaeta has been in federal custody since April 25, 2014, when he was arrested at the San Francisco airport. On May 16, a federal magistrate judge ordered him detained based on a risk of flight.
Today he pled guilty to laundering $52,390.00 from ICON’s scheme by depositing a check in that amount from ICON into a bank account of PSPS Sales on December 7, 2012. He admitted that when he made that deposit, he knew that more than $10,000.00 of those funds was the result of criminal fraud against the FCC. As a result of this guilty plea, he faces up to ten years in prison, a fine of up to $250,000, and up to three years of supervised release.
This case is the result of an investigation by the Office of Inspector General for the Federal Communications Commission; the Federal Bureau of Investigation; and the Internal Revenue Service, Criminal Investigations Division. It is being prosecuted by Assistant U.S. Attorneys Chris M. Stephens and Scott E. Williams.
Reference is made to the indictment and other public filings for further information.
Manager Jeffrey Taylor 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 Jeffrey Charles Leroy Taylor, 40, pled guilty before U.S. Magistrate Judge Dave Lee Brannon 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, in Case No. 14-80240-CR-MARRA.
All 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. No sentencing date has been set for Taylor yet, but ringleader Jason Vitulano is scheduled for sentencing on December 5, 2014 in West Palm Beach. Taylor and Vitulano each face up to 20 years in prison as to each of the two counts of conviction, plus fines of up to $250,000 or twice the pecuniary loss, as to each count. The other eight defendants were previously sentenced by U.S. District Judge Kenneth A. Marra to prison terms ranging from 24 months to 72 months.
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, Jeffrey Taylor was a team manager who directed sales staff, including 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 and Adrienne Rabinowitz.
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.
Man Sentenced for Carrying Out Fraudulent Tax Refund Scheme While in PrisonRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of GARY LEE SPEAR, 36, to 58 months in federal prison for filing fraudulent tax returns. SPEAR, who was indicted on January 7, 2014 along with co-defendants MONEER JUNE KHAZRAEINAZMPOUR and KELLY MATTESON, pleaded guilty on April 11, 2014 to one count of Conspiracy to Defraud the United States. KHAZRAEINAZMPOUR pleaded guilty on March 11, 2014 to one count of Conspiracy to Defraud the United States and one count of Distribution of Methamphetamine. She was sentenced on June 9, 2014 to 60 months in federal prison. MATTESON, who pleaded guilty on May 1, 2014 to one count of Conspiracy to Defraud the United States, was sentenced on October 17, 2014 to 18 months in federal prison.
According to documents filed in court, from January 2009 through September 2011, SPEAR conspired with KHAZRAEINAZMPOUR and MATTESON, and other unnamed individuals, to file fraudulent tax returns in order to obtain large tax refunds. The purpose of the conspiracy was to steal money from the IRS by filing tax returns that reported inflated income, false withholdings, and other false items.
According to his guilty plea, SPEAR admitted that his role in the conspiracy involved obtaining personal identifying information, including birth dates and social security numbers, of prison inmates and then providing the information to his co-defendants. SPEAR carried out his role in the scheme while incarcerated in state prison for other crimes. SPEAR and his co-defendants submitted more than 130 fraudulent claims seeking refunds totaling more than $500,000.
This case resulted from an investigation conducted by the Internal Revenue Service-Criminal Investigations and the Minnesota Bureau of Criminal Apprehension. It was prosecuted by Assistant U.S. Attorney William J. Otteson.
Defendant Information: GARY LEE SPEAR, 36
Sherburne County Jail
Convicted: • Conspiracy to Defraud the United States, 1 count
Sentenced: • 58 months in prison
• 3 year term of supervised release###
Luzerne County Man Sentenced to 9 Years in Prison for Sex Trafficking of A MinorRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Wilkes-Barre man was sentenced today to serve nine years in federal prison by U.S. District Court Judge Robert D. Mariani for sex trafficking of a minor.
According to United States Attorney Peter Smith, the defendant, Travis Humphrey, age 27, previously pleaded guilty to recruiting and transporting a then 16-year-old female to engage in commercial sex acts in motels in Pennsylvania and New Jersey. In furtherance of the crime, Humphrey and others rented motel rooms and posted “escort” advertisements and photographs on a website during 2013.
Humphrey was indicted by a federal grand jury in January 2014, as a result of an investigation by the Department of Homeland Security (DHS), Homeland Security Investigations (HSI), the Pennsylvania State Police, and the Luzerne County District Attorney’s Office.
Judge Mariani also ordered Humphrey to serve five years on supervised release following his prison sentence, and to pay a $100 special assessment. Humphrey will also have to register as a sex offender and undergo sex offender treatment.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Justice Department Reaches $5 Million Settlement with Flakeboard, Arauco, Inversiones Angelini and Sierrapine for Illegal Premerger CoordinationRead the Press Release
The department today announced a settlement with Flakeboard America Limited; its parent companies, Celulosa Arauco y Constitución S.A. and Inversiones Angelini y Compañía Limitada; and SierraPine. The settlement requires the companies to pay a combined $3.8 million in civil penalties for violating the Hart–Scott–Rodino (HSR) Act of 1976. In addition, for violating Section 1 of the Sherman Act, Flakeboard must disgorge $1.15 million in illegally obtained profits and both Flakeboard and SierraPine must establish antitrust compliance programs and agree to certain restrictions.
The settlement resolves the department’s allegations that Flakeboard, Arauco and SierraPine engaged in illegal premerger coordination while Flakeboard’s proposed acquisition of three SierraPine mills was under antitrust review by the Department of Justice.
Flakeboard and SierraPine abandoned the proposed acquisition on Sept. 30, 2014, after the department expressed concerns about the transaction’s likely anticompetitive effects in the production of medium-density fiberboard (MDF). MDF is a manufactured wood product widely used in furniture, kitchen cabinets, and decorative mouldings.
The department today filed, in U.S. District Court for the Northern District of California, a civil antitrust complaint alleging violations of the HSR Act (Section 7A of the Clayton Act) and Section 1 of the Sherman Act. At the same time, the department filed an agreement that, if approved by the court, would resolve the lawsuit.
“Companies proposing to merge must remain separate and independent during the government’s investigation,” said Bill Baer, Assistant Attorney General of the Department of Justice’s Antitrust Division. “These two competitors did not. Instead they closed a plant and allocated customers when they should have been competing vigorously. As a result both companies are paying substantial civil penalties and Flakeboard is being forced to surrender the ill-gotten profit it gained from violating the antitrust laws.”
According to the complaint, before the proposed acquisition, SierraPine operated particleboard mills in Springfield, Oregon, and Martell, California, that competed directly with Flakeboard’s particleboard mill in Albany, Oregon. Particleboard is an unfinished wood product that is widely used in countertops, shelving, low-end furniture, and other finished products. The Springfield and Martell mills were included in the proposed acquisition along with a third SierraPine mill that produced MDF. The complaint alleges that after announcing the proposed acquisition on Jan. 14, 2014, and before the expiration of the HSR Act’s mandatory premerger waiting period, Flakeboard, Arauco, and SierraPine illegally coordinated to close SierraPine’s particleboard mill in Springfield, Oregon, and move the mill’s customers to Flakeboard. This unlawful coordination led to the permanent shutdown of the Springfield mill on March 13, 2014, and enabled Flakeboard to secure a significant number of Springfield’s customers for its Albany mill. The defendants’ conduct constituted an illegal agreement to restrain trade in violation of Section 1 of the Sherman Act, and prematurely transferred operational control, and therefore beneficial ownership, of SierraPine’s business to Flakeboard in violation of the HSR Act.
The HSR Act requires companies planning acquisitions or mergers that meet certain thresholds to file premerger notification documents with the department and the Federal Trade Commission. The HSR Act also requires that the merging parties observe a mandatory waiting period before proceeding with the transaction. If the government determines that a transaction violates the antitrust laws, it may seek to block that transaction before the waiting period expires. Each party is subject to a maximum civil penalty of $16,000 per day for each day they violate the HSR Act.
The complaint alleges that the defendants’ HSR Act violation occurred from January 17, 2014, when Flakeboard and SierraPine began coordinating on the closure of the Springfield mill, until the expiration of the waiting period on Aug. 27, 2014. The companies cooperated with the investigation by voluntarily providing the department with evidence of their unlawful premerger conduct, which was a significant factor in the department’s decision to reduce the maximum HSR penalty. The $1.15 million in disgorgement under the Sherman Act represents a reasonable approximation of the ill-gotten profit Flakeboard received as a result of the parties’ coordination to close Springfield and move the mill’s customers to Flakeboard.
Flakeboard is a Delaware corporation with its U.S. headquarters in Fort Mill, South Carolina. Flakeboard’s parent company is Celulosa Arauco y Constitución (Arauco), which is held by Inversiones Angelini y Compañía Limitada, a Chilean corporation headquartered in Santiago, Chile, and the ultimate parent entity named on the HSR filing.
SierraPine is a California limited partnership headquartered in Roseville, California.
As required by the Tunney Act, the proposed settlement, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Peter Mucchetti, Chief, Litigation I Section, Antitrust Division, U.S. Department of Justice, 450 5th Street, N.W., Suite 4100, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may enter the proposed final judgment upon finding that it is in the public interest.
Flakeboard Complaint
Flakeboard Explanation
Flakeboard Competitive Impact Statement
Flakeboard Proposed Final Judgement
Flakeboard Stipulation
Jury Convicts Rose City Dentist for Refusing to Pay TaxesRead the Press Release
A Rose City dentist was found guilty by a jury in federal court of income tax evasion, mail fraud and making false statements to the Internal Revenue Service, U.S. Attorney Barbara McQuade announced today.
McQuade was joined in the announcement by Jarod Koopman, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation.
Convicted was Carter White Rae, of Rose City, Michigan, after a trial before U.S. District Judge Thomas L. Ludington in Bay City, Michigan.
According to court records and evidence introduced at trial, Rae refused to pay both federal and the state income taxes from 2001 through 2011. Rae utilized many different tactics to avoid paying taxes that he knew he owed, including operating his dental practice using the Employer Identification Number (EIN) of the former owner; opening and using a business bank account in the name and the EIN of the former owner of the practice; closing his personal bank account and using only his business bank account, cash and money orders to pay his personal expenses.
The evidence at trial showed that Rae took many steps to deceive the IRS. He characterized payments to his wife as “payroll” expenses even when his wife, who rarely worked for his dental business, lived in a different state. Rae directed payments from dental insurance companies to be diverted to third parties to avoid an Internal Revenue Service levy, and he also refused to produce records pursuant to a court order directing him to comply with an IRS Summons.
“The jury has sent a strong message that our citizens will not tolerate those who attempt to evade their taxes. IRS-CI will continue to pursue these types of cases reaffirming our message that we do not expect honest taxpayers to foot the bill for those who attempt to break the tax laws,” said Special Agent in Charge Jarod Koopman.
Sentencing currently is scheduled for February 25, 2015, before Judge Ludington. Rae faces a statutory maximum potential sentence of 5 years in prison for the evasion and false statement counts and a maximum term of 20 years imprisonment for the mail fraud charge. All three counts carry a fine of up to $250,000.
The case was investigated by special agents of the IRS-Criminal Investigation and is being prosecuted by the U.S. Attorney’s Office in Bay City.Jury Convicts Man of Attempted Bank RobberyRead the Press Release
TULSA, Okla. — Following a five-day trial, a Federal jury convicted Francis Harry Dishmon, 51, of Tulsa, of attempted robbery of the IBC Bank in Miami, Oklahoma, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma.
On April 8, 2014, the Government filed a two-count Indictment which charged Dishmon with attempted bank robbery and killing a person while attempting to avoid apprehension.
The charging statute provides a statutory maximum penalty of 20 years in prison and a $250,000 fine for attempted bank robbery. The case was tried before United States District Judge John E. Dowdell and he will sentence Dishmon on the attempted robbery conviction on March 9, 2015.
The Government alleged in Count 2 of the Indictment that on August 28, 2013, after attempting to rob the IBC Bank, Dishmon caused a deadly crash while attempting to avoid law enforcement apprehension. The jury could not reach a verdict on Count 2 and it will be retried at a later date. The verdict was received by United States District Chief Judge Gregory K. Frizzell.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Jan Reincke and Gary L. Davis II on behalf of the United States.U.S. v. Francis Harry Dishmon
Honduran Man, Ricky Guiti, Charged with Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RICKY GUITI, age 29, a native of Honduras, was indicted today by a federal grand jury for reentering the United States without permission, after previously having been deported.
According to court documents, GUITI was previously removed from the United States on October 27, 2011. GUITI was found in the Eastern District of Louisiana on October 5, 2014, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
If convicted, GUITI faces a maximum term of imprisonment of two years, as well as a fine of $250,000.
U.S. Attorney Polite reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Immigration and Customs Enforcement. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
(Download Indictment )
Harrisburg Man Sentenced to 20 Years Imprisonment for Attempt to Obtain Children for Sexual ActivityRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on November 6, Matthew Baratucci, age 29, of Harrisburg, was sentenced by Senior United States District Court Judge Sylvia H. Rambo to 240 months’ (20 years) imprisonment, a $1,100 fine and ten years of supervision following his release from imprisonment, after pleading guilty to coercion and enticement of a minor to engage in sexual activity.
According to U.S. Attorney Peter Smith, and as presented to the Court by Assistant U.S. Attorney Daryl Bloom, in October of 2013, Baratucci solicited two women for the purpose of obtaining children with whom he intended to engage in sexual activity. One woman related that Baratucci wanted her to provide two children she babysat, ages five and nine, threatened the woman with violence if the children were not provided. Investigators assumed the woman’s identity and arranged to meet Baratucci for the exchange of $150 for the two children. When investigators attempted to arrest Baratucci, he tried to flee, crashing into a vehicle before he was ultimately stopped by law enforcement. Baratucci pled guilty on May 21, 2014.
This case was the result of a collaborative effort between federal and state law enforcement. Attorney General Kathleen Kane commented “we will continue to work with our Federal, State and Local partners to hunt down and convict these predators”
The investigation was conducted by the United States Postal Inspection Service, the Pennsylvania Office of the Attorney General and the Pennsylvania State Police with the assistance of the Lower Paxton Township Police Department.
Georgia Man Pleads Guilty to Securities FraudRead the Press Release
CINCINNATI – Charles H. Sheehan III a/k/a/ “Duke Sheehan”, 69, of Cumming, Ga. pleaded guilty in U.S. District Court to one count of securities fraud.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the plea entered today before Judge Timothy S. Black.
According to court documents, Sheehan represented himself to be the President and CEO of a purported charity called the Southern Foundation for the Advancement of Arts and Education, Inc., based in Georgia. Sheehan promised a Cincinnati-based real estate development group that he would invest $1 million from the group along with funds from the Southern Foundation in a series of purported investments. However, rather than investing the $1 million that had been wired to the defendant, Sheehan distributed the funds to himself and others.
Sheehan pleaded guilty to defrauding investors with respect to the Southern Foundation and the use of the investor funds. He has agreed to pay restitution in the amount of $1 million.
U.S. Attorney Stewart commended the investigation by the FBI, as well as Assistant United States Attorney Timothy Mangan, who is representing the United States in this case.
Former United States Navy Military Sealift Command Contractor and Co-Founder of Government Contracting Company Sentenced to PrisonRead the Press Release
A former contractor for the U.S. Navy Military Sealift Command (MSC) and a co-founder of a Chesapeake, Virginia, government contracting company were sentenced today for their roles in a scheme to bribe and provide illegal gratuities to public officials to secure lucrative military contracts.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Office, Executive Assistant Director Charles T. May Jr. of the Naval Criminal Investigative Service (NCIS), and Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office made the announcement. United States District Judge Rebecca Beach Smith of the Eastern District of Virginia imposed the sentences.
Scott B. Miserendino Sr., 55, of Stafford, Virginia, and Timothy S. Miller, 58, of Chesapeake, Virginia, were sentenced to serve 96 months in prison and 24 months in prison, respectively. Miserendino was also ordered to forfeit $212,000 and Miller was ordered to forfeit $167,000. Miller was also ordered to pay a fine of $25,000. In August 2014, Miserendino pleaded guilty to one count of conspiracy to commit bribery and one count of bribery, and Miller pleaded guilty to providing illegal gratuities to Miserendino and Kenny E. Toy, the former Afloat Programs Manager for the N6 Command, Control, Communication, and Computer Systems Directorate.
According to admissions in his plea agreement, Miserendino was a government contractor at the MSC, which is the leading provider of transportation for the U.S. Navy. In that position, Miserendino worked closely with Toy, who exercised substantial influence over the MSC contracting process. In November 2004, Miserendino and Toy initiated a bribery scheme that spanned five years, involved multiple co-conspirators, including two companies, and resulted in Miserendino and Toy receiving more than $265,000 in cash, among other things of value, in exchange for official acts in connection with the award of MSC contracts.
Specifically, Miserendino and Toy solicited cash from co-conspirators, including a $50,000 cash payment from Miller and his business partner, Dwayne A. Hardman, to influence the award of government contracts. Miserendino admitted that he and Toy also accepted other things of value in exchange for official acts, including a vacation rental, laptop computers, flat screen televisions, a football helmet signed by Troy Aikman, a wine refrigerator and softball bats.
According to Miller’s admissions, during the scheme, his company received approximately $2.5 million in business from the MSC, despite its limited record of past performance in the industry. Miserendino and Toy also directed $3 million in business from MSC to another company run by other co-conspirators.
After the cash payments were delivered, Miller admitted that he directed the creation of a false promissory note disguising the illegal gratuities as a personal loan to another individual. Miserendino also admitted to engaging in a scheme to conceal his criminal activity by arranging for more than $85,000 to be paid to Hardman in an attempt to dissuade him from reporting the bribery scheme to law enforcement authorities.
Earlier this year, five other individuals pleaded guilty and were sentenced in connection with the bribery scheme:
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Toy pleaded guilty to bribery and was sentenced to eight years in prison and ordered to forfeit $100,000;
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Hardman pleaded guilty to bribery and was sentenced to eight years in prison and ordered to forfeit $144,000;
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Michael P. McPhail pleaded guilty to conspiracy to commit bribery and was sentenced to three years in prison and ordered to forfeit $57,000;
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Roderic J. Smith pleaded guilty to conspiracy to commit bribery and was sentenced to four years in prison and ordered to forfeit $175,000; and
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Adam C. White pleaded guilty to conspiracy to commit bribery and was sentenced to two years in prison and ordered to forfeit $57,000.
The case was investigated by the FBI, NCIS and DCIS, and prosecuted by Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Stephen W. Haynie of the Eastern District of Virginia.
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Former Union County, N.J. Port Executive Sentenced to One Year in Prison for Commercial BriberyRead the Press Release
TRENTON, N.J. - A maintenance director at Maher Terminals in Union County, New Jersey, was sentenced today to 12 months in prison for soliciting and accepting cash bribes of more than $100,000 in return for demolition and construction contracts at a container ship facility, U.S. Attorney Paul J. Fishman announced.
Donald Olesky, 57, of Sayreville, New Jersey, previously pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with two counts of using, and causing to be used, the mail in aid of an unlawful activity, specifically commercial bribery under New Jersey law. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements in court:
Olesky was director of facility maintenance at Maher Terminals at Port Elizabeth, New Jersey. As part of his duties, he obtained bids and awarded contracts for construction projects. From 2000 through 2011, Olesky manipulated the bidding process to ensure demolition and construction projects were awarded to contractors that paid him cash bribes. During his plea proceeding, Olesky admitted to soliciting and accepting $122,000 in bribes.
In addition to the prison term, Judge Wolfson sentenced Olesky to two years of supervised release, ordered him to forfeit $288,000 and fined him $10,000.
U.S. Attorney Fishman credited special agents of the FBI’s Trenton Field Office, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Harvey Bartle, the Attorney-in-Charge of the U.S. Attorney’s Trenton Office, and Vikas Khanna, of the U.S. Attorney’s Office’s Special Prosecutions Division.
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Defense counsel: Robert Stahl Esq., Westfield, N.J.Former Stone County Arkansas Deputy and Two Former Inmates at the Stone County Jail Indicted for Violating Inmate’s Civil RightsRead the Press Release
Former Stone County Arkansas Deputy and jail administrator, Randel Branscum, 54, and two former inmates at the Stone County Jail, Matthew McConniel, 42, and James Beckham, 34, have been indicted on charges of conspiracy to violate the rights of inmates at the jail and deprivation of rights under color of law, the Justice Department announced. The indictments were unsealed on Nov. 6, 2014.
The indictment alleges that on or about Sept. 19, 2011, Branscum conspired with McConniel and Beckham to have inmates at the Stone County Jail physically assaulted. Branscum, in his capacity as jail administrator, ordered two inmates be transferred into McConniel and Beckham’s cell. Once the inmate transfer had been completed, McConniel and Beckham assaulted one of the inmates, causing bodily injury to him.
If convicted of both counts in the indictment, each defendant faces a maximum statutory sentence of 20 years in prison.
An indictment is merely an accusation, and the defendants in this case are presumed innocent unless proven guilty.
This case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Trial Attorneys Henry Leventis and Samantha Trepel of the Civil Rights Division.
Former Bank President Indicted for Bank and Money Laundering ChargesRead the Press Release
Follow @NDFLNewsPENSACOLA, FLORIDA – Michael “Sean” Davis, 43, of Crestview, has been indicted by a federal grand jury for nine felony counts, which included one count of conspiracy to commit bank fraud and/or mail fraud affecting a financial institution, one count of conspiracy to commit money laundering, four counts of false statement to a federally insured institution, two counts of fraudulently benefitting from a loan by a federally insured institution, and one count of money laundering. The indictment was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment alleges that Davis, while the president of Premier Community Bank of the Emerald Coast, devised a scheme to defraud and fraudulently obtain money and property from Premier Community Bank, Bank of America, and Beach Community Bank, all of which were federally insured. As a part of the scheme, it is alleged that Davis orchestrated short sales from Bank of America by causing the submission of false documents in real estate closings. The indictment also alleges that Davis, through his company MSD Investments, received funds from loans he authorized and approved as president of Premier Community Bank.
Davis had his arraignment yesterday afternoon before Magistrate Judge Elizabeth M. Timothy at the United States Courthouse in Pensacola, Florida. The trial is scheduled for Monday, January 5, 2015, before Chief United States District Court Judge M. Casey Rodgers.
The case is being investigated by IRS Criminal Investigation with assistance from the Federal Deposit Insurance Corporation’s Office of Inspector General, the Okaloosa County Sheriff’s Office as part of the Northwest Florida Financial Crimes Task Force, and the U.S. Treasury Department’s Special Inspector General for the Troubled Asset Relief Program. This case is being prosecuted by Assistant United States Attorney Tiffany H. Eggers.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.Fifth Ohio Businessman Associated with Cadillac Ranch Restaurants Sentenced for Tax EvasionRead the Press Release
A Marion, Ohio, man was sentenced yesterday in U.S. District Court for the Southern District of Ohio to serve 12 months and one day in prison, the Justice Department and Internal Revenue Service (IRS) announced.
Joel Field, 58, was also sentenced to serve four months in a halfway house and four months of home confinement, to pay $349,778 in restitution and a $4,000 fine, and to serve three years of supervised release by U.S. District Judge Edmund A. Sargus Jr. Field pleaded guilty to tax evasion in May.
Field was one of four businessmen involved in the development, operation and ownership of primarily Cadillac Ranch restaurants in Ohio and elsewhere. Field’s brother, Jon B. Field, of Dublin, Ohio, and his accountant, Larry Couchot, of Dayton, were sentenced to prison by Judge Sargus for their tax crimes earlier this year.
In May 2014, Field pleaded guilty to evading payment of his federal income taxes for the years 1997 through 2001. According to court documents, when the IRS attempted to collect the outstanding amount of taxes owed by Field, which was in excess of $140,000, Field misled the IRS by failing to report assets and income and by submitting false information regarding foreclosure proceedings. Further, according to documents filed with the court, Field transferred assets in an effort to conceal those assets from the IRS. Field also filed false federal income tax returns for the years 2006 through 2009 wherein he failed to report over $620,000 in income that he earned through his companies.
The case was investigated by the IRS-Criminal Investigation and is being handled by Trial Attorney Richard M. Rolwing for the Justice Department’s Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website. Additional information about tax fraud schemes to watch out for may be found on the IRS-Criminal Investigation website.
Federal Jury Convicts Allen GangRead the Press Release
U.S. Attorney Kenneth A. Polite announced that GIE PRESTON, age 39, BURNELL ALLEN, age 35, and SONNY ALLEN, age 31, all residents of New Orleans, Louisiana, were convicted late yesterday after a 4-day jury trial. The jury returned a verdict of guilty on a superseding indictment charging all defendants with conspiring to distribute and possess with intent to distribute 280 grams or more of cocaine base “crack.” The jury also found SONNY ALLEN guilty of distributing a quantity of cocaine base “crack” on four occasions. In addition, GIE PRESTON was found guilty of possessing a firearm in furtherance of a drug trafficking crime, being a convicted felon in possession of firearms, and conspiring to possess a firearm in furtherance of a drug trafficking crime. BURNELL ALLEN and SONNY ALLEN were found not guilty of conspiring to possess a firearm in furtherance of a drug trafficking crime and GIE PRESTON was found not guilty of another gun crime.
Evidence was presented at trial that these defendants are related and grew up in and around the former Melpomene Housing Development, engaged in high volume street level drug dealing over the course of several years. The majority of this activity took place near an older relative’s home located at 1218 Simon Bolivar Avenue. Further evidence presented showed that the defendants routinely carried firearms to protect themselves while engaged in distributing illegal narcotics.
U.S. District Judge Stanwood R. Duval, Jr. scheduled sentencing for April 8, 2015. GIE PRESTON faces 15 years to life; BURNELL ALLEN faces a mandatory life sentence; and SONNY ALLEN faces 20 years to life.
"The Allen Gang sold crack cocaine 'every day, all day' in the Guste high rises, and used guns to protect that business," U.S. Attorney Kenneth A. Polite said in a statement. "These guilty verdicts ensure that these men spend decades in jail for terrorizing their community."
ATF Special Agent in Charge Phillip Durham stated, “For decades, the criminal enterprise known as the Allen family has preyed upon the local community by using firearms to commit violent crimes and distributing large quantities of illegal drugs. Unquestionably, these guilty verdicts are a resounding victory for the citizens of New Orleans and highlight the unyielding efforts of ATF and the Multi-Agency Gang Unit in combating these violent crimes.”
“This verdict is proof that the rules of the game have changed for good,” said NOPD Superintendent Michael Harrison. “Through the Multi-Agency Gang Unit, local, state and federal law enforcement agencies are working together every day to take dangerous individuals off the streets. We will not rest until every neighborhood in New Orleans is a safe neighborhood.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives as part of the metro area’s Multi-Agency Gang Unit (MAG). As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the MAG Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Federal Bureau of Investigation (FBI); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and the New Orleans Police Department in investigation this matter. Assistant U.S. Attorneys Sean Toomey and Andre Lagarde were in charge of prosecuting this matter.
Fbi Director Recognizes Prosecutors for Sex Trafficking ProsecutionRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today that the Director of the Federal Bureau of Investigation has recognized two Assistant United States Attorneys (AUSAs) for their exceptional work in a commercial sex trafficking prosecution.
In a ceremony at the U.S. Attorney’s Office in Baton Rouge, FBI Special Agent-in-Charge Mike Anderson presented AUSAs Susan C. Amundson and Frederick A. Menner, Jr., with the FBI Director’s certificates in recognition of their achievements. FBI Supervisory Special Agent Charles Delaughter and FBI Special Agent Taneka Harris were also present.
AUSAs Amundson and Menner were specifically recognized for their work prosecuting Erick Banks, a man convicted of enticing a 15-year-old girl to engage in prostitution. Shortly after running away from home, the victim encountered Banks who used online advertising to offer the victim as a prostitute. Banks used the moniker “Sinsational” or “Blonde Bunny” to describe the victim in ads. Banks instructed the victim how to engage in telephone conversations with potential customers and how to determine if a customer was a law enforcement officer. Banks coordinated the sexual encounters and took the money paid to the victim by customers. Banks was sentenced to 9 years in federal prison. He was also sentenced to five years of supervised release after imprisonment and ordered to pay the victim $1,200 in restitution.
U.S. Attorney Green stated: “I join the FBI Director in extending my heartfelt appreciation to AUSAs Amundson and Menner. Their passion, dedication, and talent make all the difference as we pursue justice against the evils of commercial sex trafficking. The same is true of the dedicated FBI agent who worked hand-in-hand with prosecutors throughout the investigation and prosecution. I look forward to our office continuing the fight against commercial sex trafficking with the FBI and our other federal, state, and local partners.”
The U.S. Attorney’s Office leads the Middle District of Louisiana Human Trafficking Task Force which is made up of federal, state, and local enforcement agencies, as well as other governmental entities and non-governmental organizations involved in assisting victims of human trafficking. The Task Force members have contributed significantly to raising awareness of this issue, coordinating an appropriate response, and enabling law enforcement to successfully investigate and prosecute these important cases.
Dozens of Online “Dark Markets” Seized Pursuant to Forfeiture Complaint Filed in Manhattan Federal Court in Conjunction with the Arrest of the Operator of Silk Road 2.0Read the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division, George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Peter Edge, Executive Associate Director of Homeland Security Investigations (“HSI”), announced today the seizure of the Silk Road 2.0 website as well as dozens of additional “dark market” websites offering a range of illegal goods and services for sale on the “Tor” network, a special network of computers on the Internet designed to conceal the true IP addresses of the computers on the network. The website addresses and computer servers hosting these websites were seized yesterday as part of a coordinated international law enforcement action involving the U.S. Attorney’s Office for the Southern District of New York, the Department of Justice’s Computer Crime and Intellectual Property Section, and the law enforcement agencies of approximately 16 foreign nations working under the umbrella of Europol’s European Cybercrime Centre (EC3) and Eurojust. This action follows the arrest announced Thursday of BLAKE BENTHALL, a/k/a “Defcon,” for his alleged role in operating the Silk Road 2.0 website. It constitutes the largest law enforcement action to date against criminal websites operating on the “Tor” network.
Manhattan U.S. Attorney Preet Bharara said: “As illegal activity online becomes more prevalent, criminals can no longer expect that they can hide in the shadows of the ‘dark web.’ We shut down the original Silk Road website and now we have shut down its replacement, as well as multiple other ‘dark market’ sites allegedly offering all manner of illicit goods and services, from firearms to computer hacking. In coordination with domestic and international law enforcement agencies, we will continue to seize websites that promote illegal and harmful activities, and prosecute those who create and operate them.”
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division said: “It is a plain fact that criminals use advanced technology to commit their crimes and conceal evidence – and they hide behind international borders so they can stymie law enforcement. But the global law enforcement community has innovated and collaborated to disrupt these ‘dark market’ websites, no matter how sophisticated or far-flung they have become.”
FBI Assistant Director-in-Charge George Venizelos said: “In today’s world we do everything online, from banking to grocery shopping. In much the same way, criminals have taken their illicit business to the ‘Tor’ network. However, websites that offer everything from drugs to illegal services on these black-market sites are not out of reach of law enforcement, as today’s announcement shows. We will continue to work with law enforcement at home and abroad to investigate, disrupt, and dismantle illicit networks that pose a threat in cyberspace.”
HSI Executive Associate Director Peter Edge said: “Underground websites such as Silk Road and Silk Road 2 are like the Wild West of the Internet, where criminals can anonymously buy and sell all things illegal. We will continue to use all of our resources and work closely with our U.S. and international law enforcement partners to shut down these hidden black market sites, and hold criminals accountable who use anonymous Internet software to peddle their illegal activities.”
According to the forfeiture complaint and other public documents:
The sites targeted in the seizure operation include the Silk Road 2.0 website and dozens of other “dark market” websites operating on what is known as “The Onion Router” or “Tor” network, a part of the Internet designed to make it practically impossible to physically locate the computers hosting or accessing websites on the network (the “Dark Market Sites”). These sites were all operating online criminal marketplaces, openly advertising on their home pages and offering to sell a variety of illicit goods and services to customers in the United States and elsewhere. The advertised goods and services included, among other things: illegal narcotics; firearms; stolen credit card data and personal identification information; counterfeit currency; fake passports and other identification documents; and computer-hacking tools and services.
The Dark Market Sites were designed to facilitate the illicit commerce hosted on the sites by providing anonymity to their users, in at least two ways. First, the Dark Market Sites were only accessible to users of the Tor anonymizing network. Second, the Dark Market Sites accepted payments for their illicit goods and services in “Bitcoin” or similar electronic currency designed to be as anonymous as cash.
The operation against the Dark Market Sites involved the seizure of over 400 Tor website addresses – known as “.onion” addresses – as well as the servers hosting them. Examples of some of the sites seized in the operation include:
- “Pandora” (pandora3uym4z42b.onion), “Blue Sky” (blueskyplzv4fsti.onion), “Hydra” (hydrampvvnunildl.onion), and “Cloud Nine” (xvqrvtnn4pbcnxwt.onion), all of which were dark markets similar to Silk Road 2.0, offering an extensive range of illegal goods and services for sale, including drugs, stolen credit card data, counterfeit currency, and fake identity documents.
- “Executive Outcomes” (http://iczyaan7hzkyjown.onion), which specialized in firearms trafficking, with offerings including assault rifles, automatic weapons, and sound suppressors. The site stated that it used “secure drop ship locations” throughout the world so that “anonymity [was] ensured” throughout the shipping process, and that all serial numbers from the weapons it sold were “remove[d] . . . and refill[ed] with metal.”
- “Fake Real Plastic” (http://igvmwp3544wpnd6u.onion), which offered to sell counterfeit credit cards, encoded with “stolen credit card data” and “printed to look just like real VISA and Mastercards.” The cards were “[g]uaranteed to have at least $2500 left on [the] credit card limit” and could be embossed with “any name you want on the card.”
- “Fake ID” (http://23swqgocas65z7xz.onion), which offered fake passports from a number of countries, advertised as “high quality” and having “all security features” of genuine documents.
- “Fast Cash!” (http://5oulvdsnka55buw6.onion) and “Super Notes Counter” (http://67yjqewxrd2ewbtp.onion), which offered to sell counterfeit Euros and U.S. dollars in exchange for Bitcoin.
Mr. Bharara praised the outstanding joint efforts of the FBI and its New York Special Operations and Cyber Branch and HSI and its Cyber Crimes Center and Chicago-O’Hare Field Office. He also thanked the Drug Enforcement Administration’s New York Organized Crime Drug Enforcement Strike Force, which comprises agents and officers of the DEA, the Internal Revenue Service, the New York City Police Department, HSI, the New York State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Secret Service, the U.S. Marshals Service, Office of Foreign Assets Control, and New York Department of Taxation. Mr. Bharara also thanked the Department of Justice’s Computer Crime and Intellectual Property Section for its partnership in the operation, the Office of International Affairs, and the law enforcement authorities of Bulgaria, the Czech Republic, Finland, France, Germany, Hungary, Ireland, Latvia, Lithuania, Luxembourg, the Netherlands, Romania, Spain, Sweden, Switzerland, and the United Kingdom, whose actions have been coordinated through Eurojust and Europol’s EC3. Mr. Bharara also noted that the investigation remains ongoing.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit and Money Laundering and Asset Forfeiture Unit. Assistant United States Attorneys Serrin Turner, Timothy Howard, and Daniel Noble are in charge of the prosecution. Assistant United States Attorney Margaret Graham is in charge of the forfeiture aspect of the case.
TweetDistrict Man Sentenced to 15 Years in PrisonRead the Press Release
For Armed Carjacking in Northwest Washington
-Took Scooter at Gunpoint in Broad Daylight –WASHINGTON - Donnell Thomas, 19, of Washington, D.C., was sentenced today to 15 years in prison for an armed carjacking that took place last year in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Thomas was found guilty by a jury in August 2014 of armed carjacking and unauthorized use of a vehicle. The verdict followed a trial in the Superior Court of the District of Columbia. Thomas was sentenced by the Honorable Ronna L. Beck. Upon completion of his prison term, he will be placed on five years of superviced release. Under District of Columbia law, armed carjacking carries a mandatory minimum of 15 years of incarceration.
According to the government’s evidence, on Aug. 2, 2013, at about 8 p.m., Thomas and his juvenile accomplice carjacked the victim’s motor scooter at gunpoint at 14th and Belmont Streets NW. The victim got a good look at both of the carjackers, who rode off on the scooter. Grainy surveillance video also showed the two carjackers walking down the street a couple blocks from the site of the crime shortly before it occurred.
Over the course of the following 24 hours, Thomas sent texts and Facebook messages, bragging about obtaining a scooter. Thomas also received a Facebook message from his accomplice concerning their plans to meet on the following day, Aug. 3, 2013.
At approximately 6 p.m. on Aug. 3, a U.S. Capitol Police officer spotted both carjackers on the scooter in the 200 block of H Street NW. When the officer went to pull the scooter over, Thomas moved away from the scooter, attempted to walk away from arresting officers, and falsely claimed the scooter was a gift from a relative.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department and the U.S. Capitol Police. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Tamaya Reid and Donville Drummond; Assistant U.S. Attorneys Ann Carroll, John Giovannelli, Suzanne Curt, and John Mannarino, and former Assistant U.S. Attorney Nicholas Cannon. Finally, he thanked Assistant U.S. Attorneys Michael Spence and Christine Macey, of the Felony Major Crimes Trial Section, who prosecuted the matter.
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Dettelbach Attends White House Event to Mark the Fifth Anniversary of Landmark Shepard-Byrd Hate Crimes Prevention ActRead the Press Release
U.S. Attorney Steven M. Dettelbach was invited to the White House yesterday to speak at an event marking the fifth anniversary of the Shepard-Byrd Hate Crimes Prevention Act.
Dettelbach, who co-Chairs the Civil Rights Subcommittee of Attorney General Eric Holder’s Advisory Committee of U.S. Attorneys, moderated a panel discussion about enforcement of the Shepard-Byrd law. He was also present at the White House when President Obama signed the landmark act into law in 2009.
Providing keynote remarks at the event were Matthew Shepard’s parents, Judy and Dennis Shepard, and James Byrd Jr.’s sister, Louvon Harris, as well as Rana Singh Sodhi, the brother of Balbir Singh Sodhi, a member of the Sikh faith, believed to be the first murder victim of post-9/11 backlash.
“This anniversary was both happy and sad,” Dettelbach said. “Happy because of the positive impact this law has had in our communities, sad because of the tragedies that caused it to be enacted and which continue to require our constant efforts to enforce it. The grace and courage of the families of the victims in these terrible cases is simply inspirational. Talking with and listening to these incredible people reminded me again of the great privilege and responsibility we all have to protect the rights of every person in this nation.”
Speakers at the White House event, which was attended by invited leadership of the civil rights and law enforcement communities, also included Secretary of Labor Thomas Perez, FBI Director James Comey, Senior Advisor to President Obama, Valerie Jarrett, and Acting Assistant Attorney General of the Civil Rights Divison, Vanita Gupta.
The landmark civil rights legislation was named after Matthew Shepard, a 21-year-old student at the University of Wyoming who was gay, and James Byrd Jr., a 49-year-old African-American man living in Jasper, Texas. Both were brutally murdered in acts of unspeakable intolerance and hate.
The Shepard-Byrd Act, named in their honor, expanded federal hate crimes protections to include sexual orientation, gender, gender identity, and disability. The act also removed unnecessary hurdles to prosecuting hate crimes committed because of race, color, or national origin. It also gave the Justice Department new tools for prosecuting criminals and directed new resources to law enforcement agencies so they could better serve their communities. And it has made it possible for more Americans to live freely and openly, reinforcing our nation’s sacred commitment to equality for all.
Thursday’s event was an opportunity to recognize how the Shepard-Byrd Act has improved our ability to address hate crimes, and the tremendous amount of work that remains.
The Department of Justice also announced several actions to strengthen and improve the federal government’s ability to prevent and respond to hate crimes, including a new series of trainings on the Shepard-Byrd Act around the country for state, local, and tribal law enforcement agencies and community leaders.
In the past five fiscal years (2009-2013), the Department of Justice has charged 201 defendants on federal hate crimes or hate crimes-related charges, including the Shepard-Byrd Act and other federal hate crimes provisions -- an increase of almost 50 percent from the prior five fiscal years (2004-2008). The Department also convicted almost 50 percent more defendants on federal hate crimes or hate crimes-related charges, compared to the prior five fiscal years. The announcements will help federal and state law enforcement to continue to aggressively investigate and prosecute hate crimes nationwide.
Department of Justice Seeks Recovery of Approximately $100,000 in Bribes Paid to Former Chad AmbassadorRead the Press Release
The Department of Justice has filed a civil forfeiture complaint made public late yesterday seeking the forfeiture of $106,488.31 in allegedly laundered funds traceable to a $2 million bribe payment made by a Canadian energy company to Chad’s former Ambassador to the United States and Canada and his wife.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Assistant Director Joseph S. Campbell of the FBI’s Criminal Investigative Division made the announcement.
From 2004 to 2012, Mahamoud Adam Bechir, 49, served as Chad’s Ambassador to the United States and Canada. According to the forfeiture complaint, Bechir agreed to use his position to influence the award of oil development rights in Chad in exchange for $2 million and other valuable interests from Griffiths Energy International Inc., a Canadian company. In order to conceal the bribe, Bechir and his wife, Nouracham Niam, 44, allegedly entered into a series of agreements with Griffiths Energy that provided for the payment of a $2 million “consulting fee” if the company secured the oil rights in Chad. After securing these oil rights in February 2011, Griffiths Energy allegedly transferred $2 million to an account located in Washington, D.C. held by a shell company created by Niam. In 2013, Griffiths Energy pleaded guilty in Canadian court to bribing Bechir.
The complaint further alleges that, after commingling the bribe payment with other funds and laundering these funds through U.S. bank accounts and real property, Bechir transferred $1,474,517 of the criminal proceeds traceable to the bribe payment to his account in South Africa, where he is now serving Chad’s Ambassador to South Africa. The current action seeks forfeiture of $106,488.31, which is the current balance of Bechir’s accounts in South Africa. Those funds have been seized pursuant to the complaint unsealed today. The Department of Justice is also seeking additional assets from Bechir and Niam.
The investigation was conducted by the FBI. The case is being handled by Trial Attorney Nalina Sombuntham of the Criminal Division’s Asset Forfeiture and Money Laundering Section.
This case was brought under the Kleptocracy Asset Recovery Initiative by a team of dedicated prosecutors in the Criminal Division’s Asset Forfeiture and Money Laundering Section, working in partnership with federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where appropriate, return those proceeds to benefit the people harmed by these acts of corruption and abuse of office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
Bechir Motion to Vacate
Bechir Attachment A
Bechir Attachment B
Bechir Complaint
Department of Defense Contractor Sentenced to Thirty Years for Production of Child PornographyRead the Press Release
Tampa, Florida– U.S. District Judge Mary S. Scriven has sentenced Michael C. Vella (36, Riverview) to 30 years in federal prison for producing child pornography. He pleaded guilty on June 20, 2014.
According to the plea agreement, a 16-year-old female reported to law enforcement that Vella had been forcing her to have sex with him since the middle of 2012. She also disclosed that Vella had, on at least one occasion, used his laptop computer to record their encounter. The video was recorded in a hotel room when he transported the victim to the Orlando area. At the time the arrest warrant was issued, Vella was deployed to Afghanistan as a Department of Defense contractor.
This case was investigated by the Federal Bureau of Investigation and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Stacie B. Harris.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (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.
Civilian Pleads Guilty to Conspiring with Corrupt Police Officers in July 2012 Robbery in Bayamon, Puerto RicoRead the Press Release
A Puerto Rican man has pleaded guilty to conspiring with corrupt police officers to commit a July 2012 robbery of a home in Bayamon, Puerto Rico, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico.
Fernando Reyes-Rojas, 43, of the Dominican Republic, pleaded guilty on Nov. 6, 2014, to violations of robbery, civil rights, narcotics, and firearms laws. Reyes-Rojas is the sixth defendant convicted in connection with the July 2012 robbery. Reyes-Rojas’s sentencing is scheduled for Feb. 4, 2015.
According to court documents, Reyes-Rojas, a civilian, agreed with at least three corrupt Police of Puerto Rico (POPR) officers and others to participate in a home robbery to steal money and narcotics.
On July 14, 2012, Reyes-Rojas joined the corrupt police officers and others in robbing a house in Bayamon. The men entered the house, identified themselves as police, and falsely claimed they were executing a search warrant. After searching the property and the people who were present, they stole money and cocaine. Reyes-Rojas sold the cocaine and paid the officers for their role in the robbery.
The corrupt police officers and a second civilian previously pleaded guilty for their participation in the July 2012 robbery. On Oct. 7, 2014, Jorge Fernandez-Aviles, 49, a POPR sergeant, pled guilty to robbery and firearms charges. On Oct. 3, 2014, David Figueroa, a civilian, pled guilty to robbery and civil rights charges. Alexander Mir-Hernandez, 40, a POPR officer, also pleaded guilty to one count of false statements for lying to federal agents about his role in the July 2012 robbery and to a civil rights crime for an unrelated December 2013 robbery. Sentencing for all three is scheduled for Jan. 9, 2015. Pedro Lopez-Torres, 35, and Luis Ramos-Figueroa, 38, both POPR officers, were each charged by information on June 25, 2014, for their roles in the July 2012 robbery and other crimes. Lopez- Torres and Ramos-Figueroa pleaded guilty before U.S. District Judge José A. Fusté the same day.
This case was investigated by the FBI’s San Juan Division. The case is being prosecuted by Trial Attorneys Heidi Boutros Gesch and Brian Kidd of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Mariana Bauza of the District of Puerto Rico.
Buffalo Man Pleads Guilty to Drug and Gun ChargesRead the Press Release
BUFFALO, N.Y. B U.S. Attorney William J. Hochul, Jr. announced today that George Torres, 52, of Buffalo N.Y., pleaded guilty to unlawfully possessing with intent to distribute more than 200 grams of heroin and possessing a firearm in furtherance of drug trafficking before U.S. District Judge Richard J. Arcara. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, a $5,000,000 fine, or both.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that on November 13, 2012, Buffalo Police and the FBI executed a search warrant at the defendant=s residence at 55 Garner Avenue in Buffalo. During the search, law enforcement officers seized over 200 grams of heroin, three handguns, and $368,000 in United States currency.
The criminal complaint is the culmination of an investigation by members of the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, Special Agents of the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge James S. Higgins.
Sentencing is scheduled for February 24, 2015 at 1:00 p.m. before Judge Arcara.Belleville Man Sentenced for Child Pornography and Drug Related OffensesRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that on November 7, 2014, Daris A. Quinn, a/k/a “DQ,” 26, of Belleville, Illinois, was sentenced on three counts of a four-count Indictment (One count was dismissed at sentencing). On Count 2, charging Possession of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, the Court sentenced Quinn to 80 months in federal prison. The Court sentenced Quinn to 21 months in federal prison on Count 3, Using a Communication Facility to Facilitate a Drug Transaction, and Count 4, Making a False Statement to a United States Postal Inspector, to run concurrently to each other, but consecutively to Count 2, for a total term in federal prison of 101 months. The Court ordered Quinn to serve a five (5) year term of supervised release on Count 2, a one (1) year term of supervised release on Count 3, and a three (3) year term of supervised released on Count 4, all to run concurrently, for a total term of supervised release of five (5) years. The Court also ordered Quinn to pay a fine of $150 on each count, for a total fine of $450, and a $300 special assessment. Quinn has been held without bond since his arraignment on a criminal complaint on May 30, 2013.
The offense in Count 2 was revealed on October 19, 2011, when Quinn’s cellular telephone was seized during the search of a residence where Quinn was present. A forensic examination of Quinn’s cellular telephone revealed videos taken by Quinn of a minor performing oral sex on Quinn in both his car and inside the minor’s home. The minor was fifteen years old at the time the videos were made; Quinn was 23.
With respect to Count 3, the forensic examination of Quinn’s cellular telephone also revealed that Quinn had used his cellular telephone, a communication facility, between on or about August 19, 2011 and October 10, 2011, to facilitate the distribution of controlled substances between himself and an individual located in Oakland, California. Text messages found on the telephone discussed, among other things, the amount of drugs to be shipped, the location of where to ship the drugs, and ways to disguise the smell of the drugs to be shipped so that the narcotics-sniffing canines would not detect them.
Finally, the offense charged in Count 4 occurred on or about February 26, 2013, during the investigation of a suspicious package by the United States Postal Inspection Service. The package was addressed to an individual in California. It listed a return address in Collinsville, Illinois, but did not provide a name. A search warrant was obtained to open the package after a narcotics-sniffing dog alerted on it. Inside the package was $23,650 in United States Currency. United States Postal Inspectors posed as postal workers to see if anyone would claim the package. A few days later, Quinn, identifying himself by a false name, arranged to come to the post office in Collinsville, Illinois, to pick up the package. Quinn continued to provide this false name to the Postal Inspector who interviewed him regarding the package. After initially lying about the contents of the package, Quinn told the Postal Inspector that he was sending the money to a friend so his friend could buy a car. Quinn then stopped talking and left when confronted with the search warrant and a photograph of the contents of the package. When the Postal Inspectors tried to stop the vehicle that he was riding in, Quinn jumped out and fled. The Postal Inspectors did not learn Quinn’s true identity until after he was eventually caught and taken to the Collinsville Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the Collinsville Police Department, the United States Postal Inspection Service and the Federal Bureau of Investigation’s Springfield Child Exploitation Task Force. The case was assigned to Assistant United States Attorney Angela Scott.
Beatrice Man Sentenced for Possession of Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Terry L. Dill, 31, formerly of Beatrice, Nebraska, was sentenced on November 7, 2014, in Lincoln, Nebraska, to 70 months in prison by United States District Judge John M. Gerrard, for possession of child pornography. After his release from prison, Dill will be required to serve a 5 year term of supervised release and be registered as a sex offender.
Dill came to the attention of law enforcement after Dropbox, Inc., a file hosting service that offers cloud storage, reported possible child pornography in one of their customer’s files to the National Center for Missing and Exploited Children (NCMEC). NCMEC then provided the information to the Nebraska State Patrol, who obtained and executed search warrants on Dill’s residence, a computer tablet of Dill’s, and his Dropbox account. Investigators found digital files containing 966 sexually explicit pictures and 116 sexually explicit videos of children under the age of 13.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Nebraska State Patrol and Beatrice Police Department.
Attorney General Holder Announces Stuart Delery Will Serve as the Department of Justice Designee as Co-Chair of the President’s Task Force on Puerto RicoRead the Press Release
Attorney General Eric Holder announced today that Stuart Delery, the Acting Associate Attorney General, will serve as the Department of Justice’s designee as Co-Chair of the President’s Task Force on Puerto Rico.
“Stuart Delery is an exceptional public servant who will continue the work of his predecessors, Tom Perrelli and Tony West, as Co-Chair of the President’s Task Force on Puerto Rico,” said Attorney General Holder. “Stuart demonstrated his commitment to strengthen our nation’s security and to protect public health and safety in his prior role as Assistant Attorney General for the Civil Division. Stuart will serve the Task Force – and the people of Puerto Rico – well.”
“The ongoing work of the Task Force reflects the Administration’s – and the Department of Justice’s – commitment to the people of Puerto Rico,” said Associate Attorney General Delery. “I am pleased to have the opportunity to contribute to the Task Force, and look forward to working with my federal colleagues and Commonwealth officials in Puerto Rico and Washington.”
The President’s Task Force on Puerto Rico, which is co-chaired by the Attorney General’s designee and the White House Director of Intergovernmental Affairs, was created by President Bill Clinton to examine Puerto Rico’s political status and to identify a process by which the people of Puerto Rico could express their views on the subject. The Task Force continued to address these issues through the Administration of President George Bush. President Barack Obama expanded the Task Force’s scope and directed it to recommend policies to promote job creation, education, health care, clean energy, and economic development on the island. The Task Force published its report and recommendations to the President and Congress in March of 2011, and its efforts to implement the recommendations continue today.
Air Conditioner Thief Sentenced to 31 Months for Violating Clean Air ActRead the Press Release
COLUMBUS – Martin C. Eldridge III, 35, of Columbus, was sentenced in U.S. District Court to 31 months in prison, 280 days of which has already been served, for violating the Clean Air Act when he cut the tubing on air conditioning units he was stealing and released a regulated refrigerant into the environment.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Randall K. Ashe, Special Agent in Charge of the U.S. Environmental Protection Agency (U.S. EPA), Franklin County Prosecuting Attorney Ron O’Brien and Columbus Police Chief Kim Jacobs announced the sentence handed down today by U.S. District Senior Judge James L. Graham.
According to court documents, Eldridge and others stole at least 49 air conditioner units between August and October 2013 in order to sell the copper and parts from the units at scrap yards. When he cut the tubing that connected the air conditioner to the business or residence, a refrigerant known as HCFC-22 was released. The refrigerant is regulated under the Clean Air Act because it poses a significant threat to the Earth’s ozone layer. HCFC-22 is also known as R-22 and sold under the trade names of Freon, Genetron, Arcton and Forane.
Eldridge pleaded guilty in June to one count of knowingly venting HCFCs into the environment. He was also sentenced to 3 years supervised release.
Eldridge will serve the federal sentence concurrent with his state sentence on the theft charges. Eldridge has been in state custody since October 2, 2013. Following prison time, Eldridge will be under court supervision for 12 months during which time he must perform 200 hours of community service.
“The defendant's repeated theft of air conditioners and subsequent release of refrigerant into the atmosphere was illegal and a clear violation of the Clean Air Act,” said Randall K. Ashe, Special Agent in Charge of EPA's criminal enforcement program in Ohio. “Today's sentence reflects U.S. EPA's commitment to protecting the ozone layer and the communities impacted by the defendant’s illegal conduct."
U.S. Attorney Stewart said this is the first federal case of its kind in the Southern District of Ohio. He commended the cooperative investigation by the Columbus Division of Police and U.S. EPA and the scrap metal theft task force, as well as Assistant U.S. Attorney J. Michael Marous and Special Assistant U.S. Attorneys Heather B. Robinson with Franklin County Prosecutor O’Brien’s Office and Brad Beeson with the U.S. EPA, who prosecuted the case.
Abington Man Charged with Social Security FraudRead the Press Release
BOSTON – Mark Gardner, 56, of Abington, was indicted in U.S. District Court in Boston on theft of public money. The indictment alleges that from July 2009 to January 2014, Gardner stole $65,311 in Social Security benefits.
The charging statute provides a sentence of no greater than ten years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. The case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
10th Street Gang Member Sentenced for RICO Conspiracy Involving a MurderRead the Press Release
Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that 10th Street Gang member Miguel Moscoso, 23, of Buffalo, NY, who was convicted of Racketeering Influenced Corrupt Organizations (RICO), was sentenced to 30 years in prison by U.S. District Judge Richard J. Arcara. The defendant murdered Christian Portes, a member of the rival 7th Street Gang, on June 13, 2009 at the corner of Whitney Place and Maryland Street.
“Today's sentence - like others issued in this case - demonstrates that those who engage in gang activity pay a heavy price upon conviction,” said U.S. Attorney Hochul. “This Office will continue to relentlessly pursue such criminals until they no longer pose a threat to the residents of this community.”
Assistant U.S. Attorney Joseph M. Tripi, who handled the case, stated that between 2008 and September 2010, the defendant was a member of the 10th Street Gang. As a part of his involvement in the gang, the defendant, along with other members and associates of the gang, committed violence, possessed firearms, and sold marijuana, cocaine, crack cocaine, and other controlled substances on the West Side of Buffalo.
Moscoso is among 44 10th Street Gang members and associates convicted in this case.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, the New York State Police, under the direction of Major Michael Cerretto, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge James S. Higgins, New York Field Division.
6 November 2014
“Enforcer” for Cherry Hill Group UDH Pleads Guilty to Racketeering Conspiracy for his Participation in Gang ActivitiesRead the Press Release
Baltimore, Maryland – Antione White, age 26, of Baltimore, pleaded guilty today to conspiracy to participate in a racketeering enterprise in connection with his gang activities as a member of the UDH organization, which operates in the Cherry Hill section of Baltimore.Co-defendant and fellow UDH member Bryan Turner, age 29, of Baltimore, pleaded guilty to conspiracy to distribute and possess with intent to distribute crack cocaine and heroin on November 5, 2014.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to their plea agreements, White and Turner are members of the UDH organization, which operates in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.” UDH members and associates have been in a long-running dispute with members of an organization known as “Coppin Court” that is involved in criminal activity in the part of Cherry Hill known as “Down the Hill,” and since at least January 2011, have been in a dispute with members of “Little Spelman,” another organization that is involved in criminal activity in the Down the Hill section of Cherry Hill. UDH members and associates used violence and intimidation to protect themselves, the organization, and their control of the drug trade in part of Cherry Hill.White was known as an “enforcer” in the UDH group who was responsible for committing robberies on behalf of the group, possessing firearms and shooting at rivals. White admitted that he committed armed robberies with fellow UDH members and possessed firearms which were used by the UDH organization to shoot rivals and protect their territory. On May 25, 2012, White was pulled over while driving a vehicle with his girlfriend and two other UDH members. Officers found a 380 semi-automatic handgun loaded with five 9mm rounds with an obliterated serial number under the driver’s seat. Ballistics comparisons revealed that this gun matched the cartridge casings recovered from the May 11, 2012 scene of the shooting of Little Spelman member Warren Jones a/k/a Pluck, in the 800 block of Bridgeview Road in Cherry Hill.
On August 5, 2011, Turner participated in the robbery of the Chesapeake Bank of Maryland in Arbutus, along with other UDH members. Turner and others went into the bank and presented the teller with a note demanding money. Turner and his associates stole $7,305, which was later divided between Turner and three other UDH members.
White and Turner admitted that as members of UDH they also sold crack cocaine, heroin and other narcotics with UDH members. They sold the drugs from a house located on Giles Road, in the UDH area of Cherry Hill. At one point, Turner even lived in the residence. In addition to selling drugs from this location, White and others stored firearms at the house, which were used communally by other UDH members. On March 8, 2011, officers executed a search warrant at a residence in the 2900 block of Cherryland Road. Turner and other UDH members were arrested and law enforcement recovered $105 from the toilet, where a UDH member had attempted to flush it; a backpack with 406 vials containing almost 25 grams of crack cocaine; drug paraphernalia and packaging material. Officers recovered $192 in cash and two Percocet pills from Turner. On January 18, 2013, Baltimore City Police arrested White and other UDH members at the Giles Road residence and seized cocaine, drug paraphernalia and a loaded gun.
During their participation in the UDH drug conspiracy, White and Turner were each responsible for distributing in excess of 280 grams of crack cocaine. Turner was also responsible for distributing more than a kilogram of heroin.
Turner faces a minimum of 10 years and a maximum of life in prison for the drug conspiracy. White and the government have agreed that if the Court accepts the plea agreement White will be sentenced to between 15 and 20 years in prison. U.S. District Judge George L. Russell III has scheduled sentencing for Turner on May 15, 2015 at 9:30 a.m. and for White on February 20, 2015, at 11:00 a.m.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith and Seema Mittal, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
What Cheer Man Sentenced for Taking and Possessing a Bald EagleRead the Press Release
DES MOINES, IA - On November 6, 2014, Jason John Thomas, age 36 of What Cheer, Iowa, was sentenced by District Court Judge John A. Jarvey to 60 days imprisonment for taking and possessing a bald eagle, announced United States Attorney Nicholas A. Klinefeldt. Thomas was ordered to serve one year of supervised release following the imprisonment, pay a $2,000 fine, and pay $25 toward the Crime Victim Fund. Special conditions of the supervised release include that Thomas shall perform 80 hours of community service, and shall not engage in any form of hunting.
On March 16, 2011, Thomas took and possessed a bald eagle in rural Mahaska County. During a boat ride, Thomas saw the bald eagle on a bluff above the river. Thomas pursued the eagle as it flew down river, captured it after it landed in the river, and then struck and killed the bald eagle.
The investigation was conducted by the United States Fish and Wildlife Service, and the Iowa Department of Natural Resources. The case was prosecuted by the United States Attorney's Office for the Southern District of Iowa.
(Download Press Release)
West Grove Resident Charged with Illegal ReentryRead the Press Release
Francisco Javier Rodriguez-Ortiz, a/k/a “Francisco Rodriguez,” a/k/a “Roberto Rodriguez,” a/k/a “Roberto Zavala-Ortiz,” 30, of West Grove, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about September 7, 2014, Rodriguez-Ortiz, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about January 9, 2008.
If convicted the defendant faces a maximum possible sentence of 20 years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Andrea Foulkes.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Wauneta, Nebraska Man Sentenced to 70 Months Imprisonment for Receiving Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Richard E. Cooley, 61, of Wauneta, Nebraska was sentenced in the United States District Court in Lincoln, Nebraska for receiving child pornography. The Honorable John M. Gerrard sentenced Cooley to a 70 month term of imprisonment. There is no parole in the federal prison system. After his release from prison Cooley will begin a seven year term of supervised release.
Cooley received a thumb drive containing 26 videos and 400 images of child pornography in August 2013. The victims were as young as 3 years old and involved a number of prepubescent minors. He received the child pornography from Gerald Vrbas who was previously sentenced to fifteen years in prison for producing child pornography.
This case was investigated by Homeland Security Investigations with the assistance of the North Platte Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Waterbury Pcp Dealer Sentenced to More Than 5 Years in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SHAUN JAMES, 45, of Waterbury, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 65 months of imprisonment, followed by four years of supervised release, for distributing PCP.
According to court documents and statements made in court, on December 14, 2012, officers with the DEA’s New Haven Task Force conducted a court-authorized search of JAMES’s apartment on Pearl Lake Road in Waterbury, where they found several containers of liquid PCP and materials used to package the drug for distribution. Officers also recovered a loaded .44 caliber revolver, an additional box of ammunition and approximately $28,500 in cash. JAMES was arrested on that date.
JAMES has been detained since his arrest. On May 28, 2014, he pleaded guilty to one count of possession with the intent to distribute 100 grams or more of Phencyclidine (“PCP”).
The seized cash and firearm were forfeited.
This case was investigated by the DEA’s New Haven Task Force with the assistance of the Waterbury Police Department. The case was prosecuted by Assistant U.S. Attorney Michael E. Runowicz.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Urbana Man Charged with Sexual Exploitation of A MinorRead the Press Release
Springfield, Ill. – Jim Lewis, U.S. Attorney for the Central District of Illinois, announced today that a federal grand jury in Springfield has returned an indictment charging Talon G. Wright, 38, of the 900 block of East Harding St, Urbana, Ill., with two counts of sexual exploitation of a minor and one count of possession of child pornography.
The indictment alleges that on or about Dec. 24, 2011 and again on Jan. 15, 2012, Wright used and coerced a minor to engage in sexually explicit conduct for the purposes of producing visual images of said conduct. The indictment further alleges that on Aug. 1, 2014, Wright possessed computer devices containing child pornography.
If convicted, the statutory penalty for each count of sexual exploitation of a minor is 15 to 30 years in prison plus a fine of up to $250,000. The penalty for possession of child pornography is up to 10 years in prison plus a fine up to $250,000. Wright may also be sentenced to a term of supervised release up to life following any prison sentence.
Wright was arrested on Oct. 27, 2014 and charged in a criminal complaint. Wright appeared before U.S. Magistrate Judge David G. Bernthal, on Oct. 27, and was ordered to remain detained in U.S. Marshals Service custody.
The case is being prosecuted by Assistant U.S. Attorney Elly M. Peirson. The charges are the result of an investigation by the Urbana Police Department and U.S. Immigration and Customs Enforcement Homeland Security Investigation, in cooperation with the office of Champaign County State’s Attorney Julia Reitz, and the Illinois Department of Children and Family Services.
Wright is scheduled to appear for arraignment before U.S. Magistrate Judge Bernthal on Nov. 12, at 3:00 p.m., in Urbana.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys= Offices and the Criminal Division=s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
# # # #Union County Resident Sentenced to 110 Months in Prison for Possession of a Firearm by a Convicted FelonRead the Press Release
COUNCIL BLUFFS, IA - On November 5, 2014, Peter James Wiley, a 33 year-old resident of Creston, Iowa, was sentenced by United States District Court Judge John Jarvey to 110 months in prison, to be followed by three years of supervised release, for possession of firearm by a convicted felon, announced United States Attorney Nicholas A. Klinefeldt.
Wiley was identified as a person of interest in a shooting that occurred in Page County, Iowa, early in the evening of December 10, 2013. Several hours later, Wiley was identified as a suspect in a shooting that occurred in Adams County, Iowa. Wiley was located by Creston, Iowa Police, early in the morning of the 11th of December 2013, when he was observed driving a car that failed to stop for a stop sign. A pursuit occurred which culminated with Wiley setting his vehicle on fire, fleeing his vehicle on foot, and running into a farm field. As he fled on foot, he dropped a forty caliber semi-automatic handgun onto the roadway. He was arrested a short time later after being located by a K-9 unit. Wiley pled guilty to the charge on June 5, 2014.
The investigation was conducted by the Shenandoah, Iowa, Police Department, the Creston, Iowa, Police Department, the Page County Sheriff’s Office, the Adams County Sheriff’s Office, the Iowa Division of Criminal Investigation, the Iowa Division of Narcotics Enforcement, and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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U.S. Department of Justice Holds Two-Day "Fair and Impartial Policing" Training for St. Louis County Law EnforcementRead the Press Release
***MEDIA ADVISORY***
COPS Office to Hold Media Availability on Fair and Impartial Policing on Friday, Nov. 7, 2014
The Office of Community Oriented Policing Services (COPS Office) is holding a Fair and Impartial Policing training on Thursday, Nov. 6, and Friday, Nov. 7, with local law enforcement as part of the Collaborative Reform Initiative and technical assistance taking place in St. Louis County. The two-day Fair and Impartial Policing training will include command-level law enforcement leadership from St. Louis County, St. Louis Metropolitan, Missouri Highway Patrol and Ferguson, Missouri, Police Departments, as well as local community members. The training is closed press; however, there will be a media availability on Friday at the conclusion of the training session.
This latest effort to build trust and strengthen the relationship between law enforcement and the communities they serve is the first of several regional collaborative reform trainings on law enforcement strategies and best practices. Under the COPS Collaborative Reform Initiative for Technical Assistance (CRI-TA), the COPS Office provides intensive, comprehensive assessment and support to agencies experiencing significant systemic challenges. The Fair and Impartial Policing training is specifically designed to enhance officers' understanding of how bias — including implicit or unconscious bias — affects officer behavior, and the impact that biased policing has on officers and the community. Subsequent training sessions will focus on educating first-line supervisors and police trainers as a way to integrate these concepts into day-to-day police practices.
This training session will be led by Dr. Lorie Fridell, a national expert on racially biased policing, and Noble Wray, a retired Chief of Police from the Madison, Wisconsin, Police Department.
WHO: Ronald L. Davis, Director of the COPS Office at the U.S. Department of Justice
Dr. Lorie Fridell, Fair and Impartial Policing technical assistance expert and associate professor at the University of South Florida’s Department of Criminology
Noble Wray, Fair and Impartial Policing technical assistance expert and retired police chief for the Madison, Wisconsin, Police Department
WHAT: Media Availability on Fair and Impartial Policing in St. Louis County
WHEN: Friday, November 7, 2014, at 1:30 p.m. CST
WHERE: Maryville University-Southwest Campus, Liberty Mutual Building at 12250 Weber Hill Road, Sunset Hills, Missouri 63127
NOTE: All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. For additional questions, please email [email protected] or call 202-514-2007.
Additional Background on Collaborative Reform: In August, following the shooting of Michael Brown, President Obama asked Attorney General Holder to send Director Davis to work with police officials on the ground in Ferguson to help reduce tensions and build trust. Under the COPS CRI-TA, the COPS Office provides more intensive, comprehensive assessment and technical assistant support for agencies experiencing significant systemic challenges. Collaborative Reform is an independent and objective means to organizational transformation through an analysis of policies, practices, training, tactics and accountability methods around key issues facing law enforcement agencies. Along with Critical Response, Collaborative Reform has become a fundamental part of the department’s overall continuum of services to advance community policing and ensure police agencies engage in constitutional practices. Currently, the COPS Office is engaged with several law enforcement agencies across the country, including the St. Louis County Police Department, as a way to advance widespread reform across the St. Louis region.
U.S. Attorney’s Office Announces Alan Mizen to Plead Guilty in Center Township Public Corruption CaseRead the Press Release
Township Chief Financial Officer embezzled over $343,000 in Public Money
INDIANAPOLIS - Acting United States Attorney, Josh J. Minkler announced today that Alan Mizen, 59, the former Chief Financial Officer for Center Township, Marion County, IN. will plead guilty to federal public corruption charges. The information charging theft from programs receiving federal funds and Mizen’s plea agreement were filed today.
"The public deserves to have public officials whom they can trust to do the right thing,” said Minkler. “When that trust is betrayed, be assured, the United States Attorney’s Office will hold them accountable. The agreement and charges filed today accomplish that goal.”
According to court documents, on June 10, 2010, Mizen signed on to the computer system for Center Township and created an invoice for a check in the amount of $343,541.08 which was purportedly payable to the Treasurer of the State of Indiana. On June 16, 2010 he wrote a check for the same amount from the Center Township’s bank account to “Attorney’s General Clearing Tr.” Mizen signed the check and deposited it into a new account he had created at PNC Bank.
Mizen then transferred the funds that he deposited into the PNC Bank account to various personal accounts that he maintained. From the personal accounts, Mizen used over $200,000 to help purchase a residence in Zionsville, purchase a Toyota Tacoma pickup truck, fund his child’s college education, finance personal vacations, purchase a diamond necklace and diamond ring for $8,900 during a trip to the Cayman Islands, and make other consumer purchases. Mizen’s used taxpayer funds to finance these personal expenditures from June 10, 2010 through July 2012.
Mizen must make pay restitution for the full amount of $343,541 to Center Township. In his signed plea agreement, Mizen agrees to use the proceeds of the previously seized assets, to pay the restitution amount.
Minkler explained this case was the result of outstanding law enforcement work by the Federal Bureau of Investigation, Indiana State Board of Accounts and the Internal Revenue Service. All three agencies are partners in the U.S. Attorney's Public Integrity Working Group, which was launched in April 2012 with the stated purpose of aggressively investigating allegations of public fraud, waste and abuse by public officials in Indiana. Anyone with information on public corruption is encouraged to contact the U.S. Attorney's Office at (317) 229-2443.
Federal Bureau of Investigation Special Agent in Charge W. Jay Abbott said, “Citizens are owed integrity at all levels of government.”
Internal Revenue Service Criminal Investigation Special Agent in Charge James C. Lee stated, “When public officials commit crimes, whether as part of their official duties or in their private lives, they are violating the public trust. IRS-Criminal Investigation helps ensure that all Americans, including public officials, are held to the same standard.”
According to Senior Litigation Counsel, Bradley A. Blackington, who is prosecuting the case for the government, Mizen could be sentenced to up to ten years in federal prison, pay a $250,000 fine and serve three years of federal supervised release.
No sentencing date has been set.
U.S. Attorney, Caddo Sheriff, Shreveport Police, Caddo School Board Join Together to Debut New Tool Teaching Firearm Safety to Students in the Western DistrictRead the Press Release
New demonstration trailer housed in Caddo Parish
SHREVEPORT, La. –United States Attorney Stephanie A. Finley joined by Caddo Parish Sheriff Steve Prator, Shreveport Police Chief Willie Shaw and Caddo Parish School Board Superintendent Dr. Theodis Lamar Goree, Jr., debuted the newest tool available to law enforcement to teach firearm safety to children in the Western District of Louisiana.
Students at Werner Park Academy were the first to see the Western District’s new firearm safety trailer in operation today. The trailer is available for use as part of the Louisiana Law Enforcement Gun Safety Program to teach firearm safety to children at area schools. Since its inception in June of 2013, the program has reached approximately 22,100 children.
Until last month, there was only one safety trailer available for use statewide. Now there is a trailer in each of the three federal judicial districts in Louisiana - Western, Middle and Eastern. After Caddo Parish Sheriff Steve Prator agreed to provide space for the training trailer, the Western District was able to launch its program. The Caddo Parish Sheriff’s Office now houses the trailer, which is available for law enforcement agencies in the District to use. Forty-two of the state’s 64 parishes are in the Western District.
The Louisiana Law Enforcement for Gun Safety Program was created in response to the alarmingly high rate of accidental firearm injuries and deaths among children in Louisiana. The program uses certified law enforcement officers to teach parents and children about gun safety through an interactive presentation involving live demonstrations. The program demonstrates the dangers of firearms and tests students’ knowledge of gun safety. The instructors show students various handguns and ask them if the weapons are real or toys. The students in many cases are unable to distinguish between real or toy guns because many toy guns look, feel and weigh the same as real ones. At the end of the program, students are shown the destructive capacity of guns by watching a pistol fire a bullet into a watermelon inside of a protective enclosure. Students are instructed that weapons must be handled safely and with adult supervision.
The program aims to identify the hazards of unsecured firearms, teach individuals how to secure firearms, identify distinguishing characteristics between real and toy guns, and illustrate the destructive force of firearms through the use of the demonstration trailer. Presentations are conducted at schools, camps and community events.
“The U.S. Attorney’s Office is proud help usher in the next step of this program,” Finley said. “We will now be able to reach even more schools and students using this new trailer. Children’s safety in the Western District of Louisiana is of the utmost concern for this office. The Gun Safety Program helps educate students on how to react when finding a gun. I would like to thank all law enforcement who have joined this effort to keep children safe. This program will save lives.”
“The Caddo Sheriff’s Office looks forward to making the Louisiana Law Enforcement for Gun Safety Program available to the citizens of Caddo Parish,” said Caddo Parish Sheriff Steve Prator. “The accidental injury or death of a child due to firearms is a terrible tragedy and one we hope to prevent by educating children and their parents about the safe handling and storage of weapons. We’ve been successful with presenting this message to elementary-age students at Sheriff’s Safety Town and are excited to have a tool to now reach out to older children and adults.”
“Having seen firsthand the tragic results of accidental firearm injuries, we are well aware of the critical need to teach our children about gun safety and this unique, interactive educational program is the perfect opportunity to partner with other law enforcement entities in a proactive effort to keep our kids safe,” said Shreveport Police Chief Willie Shaw.
“Each day in Caddo Parish Public Schools we work to better students not only academically, but to ensure their safety and security and provide life skills needed to foster vibrant community members,” said Caddo Parish Superintendent Dr. Theodis Lamar Goree, Jr. “This program is a powerful tool to educate our students on the dangers of firearms and will translate into positive results for our youth. We are grateful for this partnership with the U.S. Attorney’s Office as well as the Caddo Parish Sheriff’s Office and Shreveport Police, and their desire to begin this program right here at Werner Park Elementary.”
The program is available for use by all law enforcement agencies in Louisiana through the endorsements of the U.S. Attorney’s Offices for the Western, Middle and Eastern districts, Caddo Parish Sheriff’s Office, Baton Rouge City Constable’s Office, Louisiana Department of Corrections, Louisiana Sheriff’s Association, Louisiana Association of Chiefs of Police, Louisiana City Marshals and City Constables Association, Louisiana District Attorneys Association, Louisiana State Police, and the Louisiana Attorney General’s Office.
The U.S. Attorney’s Office Law Enforcement Community Coordinator Mike Campbell is conducting the training and is assisting with the operation of the program in conjunction with the Caddo Parish Sheriff’s Office. As LECC, Campbell acts as a liaison between the U.S. Attorney=s Office and local, state, and federal law enforcement. He assists with grants, coordinates and provides law enforcement training, and assists law enforcement agencies with special and community needs.
For more information about the firearms safety program, contact Mike Campbell at the U.S. Attorney’s Office at 318-676-3600 or Mike Gregory at the Caddo Parish Sheriff’s Office at 318-681-1106.
Two Air Traffic Controllers at JFK Arrested After Stealing Time from the Federal Aviation Administration for More Than 3 YearsRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Asif Ali and Jeffrey Evagues with stealing more than $165,000 from the Federal Aviation Administration (FAA) by modifying payroll system entries to indicate that they were working when they were not. Ali and Evagues were arrested earlier today in South Ozone Park, Queens, and Manorville, Long Island, respectively. Their initial appearance is scheduled for this afternoon before United States Magistrate Judge Viktor V. Pohorelsky at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Douglas Shoemaker, Special Agent in Charge, United States Department of Transportation, Office of Inspector General, New York Regional Office.
As alleged in the complaint, between September 2011 and October 2014, FAA Air Traffic Controllers Ali and Evagues modified labor distribution reports on more than 300 occasions to indicate and get paid as if they were controlling air traffic at JFK when, in fact, they were taking vacation time, sick leave, or regular days off. Security camera footage captured both defendants entering the room that contains the computer from which payroll changes occurred, just minutes prior to when modifications were implemented.
“For three years, these air traffic controllers engaged in a high flying scheme to redirect public funds into their own bank accounts. Today they were grounded,” stated United States Attorney Lynch. “This office and its law enforcement partners are committed to ensuring that government employees act with the degree of integrity that the public expects and deserves.”
“The arrest of Mr. Asif Ali and Mr. Jeffrey Evagues for allegedly stealing time from the FAA is a clear signal that Federal employees will be held responsible for maintaining the highest level of integrity,” stated Douglas Shoemaker, DOT OIG Regional Special Agent in Charge. “Working with our law enforcement peers and prosecutorial colleagues, we will continue our vigorous efforts to protect the taxpayers’ investment in our nation’s transportation system from fraud, waste, abuse, and violations of law.”
The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Special Assistant United States Attorney Jonathan P. Lax.
The Defendants:
ASIF ALI
Age: 38
South Ozone Park, New York
JEFFREY EVAGUES
Age: 54
Manorville, New York
E.D.N.Y. Docket No. 14-MC-917
Three Subsidiaries of the World’s Largest Fertilizer Producer to Reduce Harmful Air Emissions at Eight Production PlantsRead the Press Release
In a settlement with the United States, three subsidiaries of the Potash Corporation of Saskatchewan (PCS), the world’s largest fertilizer producer, will take steps to reduce harmful air emissions at eight U.S. production plants, the U.S. Environmental Protection Agency (EPA) and Department of Justice announced today. The settlement resolves claims that these PCS subsidiaries violated the Clean Air Act when they modified facilities in ways that released excess sulfur dioxide into surrounding communities.
The settlement requires PCS Nitrogen Fertilizer, AA Sulfuric Inc., and White Springs Agricultural Chemicals Inc. to install, upgrade and operate state-of-the-art pollution reduction measures, as well as install emissions monitors at eight sulfuric acid plants across facilities in Geismar, Louisiana (one plant), White Springs, Florida (four plants), and Aurora, North Carolina (three plants). The three companies will spend an estimated $50 million on these measures, and will pay a $1.3 million civil penalty.
“This agreement, the largest so far in our ongoing Clean Air Act enforcement efforts against sulfuric-acid producers, will ensure cleaner air for citizens across the Southeast and will send a strong signal to the industry that noncompliance has serious consequences,” said Acting Assistant Attorney General Sam Hirsch for the Department of Justice’s Environment and Natural Resources Division.
“Large industrial facilities that break the law and pollute the air will be held accountable,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “This case will bring these companies into compliance and require additional action to cut pollution to benefit communities, especially those most vulnerable to air pollution.” EPA expects the actions that the companies have agreed to take will reduce harmful emissions by over 13,090 tons per year, which includes approximately 12,600 tons per year of sulfur dioxide, 430 tons per year of ammonia and 60 tons per year of nitrogen oxide. In the future, the companies can also retire plants to comply with the settlement.
The settlement also includes a “supplemental environmental project,” estimated to cost between $2.5 and $4 million, to protect the community around a PCS Nitrogen nitric acid plant in Geismar, Louisiana, and requires PCS Nitrogen to install and operate equipment to reduce emissions of nitrogen oxide and ammonia. This project is part of EPA’s commitment to advancing environmental justice by reducing the disproportionate environmental impacts on communities near industrial facilities – in this instance, by reducing fine particulates that can aggravate respiratory disease.
Sulfur dioxide, the predominant pollutant emitted from sulfuric acid plants, has numerous adverse effects on human health and is a significant contributor to acid rain, smog and haze. Sulfur dioxide—along with nitrogen oxide—is converted in the air to particulate matter that can cause severe respiratory and cardiovascular impacts, and premature death.
This settlement is part of EPA’s national enforcement initiative to control harmful emissions from large sources of pollution, which includes acid production plants, under the Clean Air Act’s Prevention of Significant Deterioration requirements. It is the 10th settlement reached under EPA’s National Acid Manufacturing Plant Initiative and the 7th settlement addressing pollution from sulfuric acid plants. Today’s settlement covers more sulfuric acid production capacity—roughly 24,000 tons per day or approximately 14 percent of total U.S. capacity—than all previous sulfuric acid settlements under this initiative combined.
The settlement also resolves alleged violations based on Louisiana law at the Geismar, Louisiana, facility, and the Louisiana Department of Environmental Quality will receive $350,000 of the $1.3 million penalty.
The settlement was lodged with the U.S. District Court for the Middle District of Louisiana and is subject to a 30-day public comment period and final court approval.
Three People Indicted in Trans-Continental Marijuana ConspiracyRead the Press Release
BOSTON – Three men were arrested today for conspiracy to distribute and possess more than 1,000 kilos of marijuana.
In an indictment unsealed today, Michael Gordon, 45, and Andrean Jaggon, 37, both of Randolph and Dagoberto Olea, 43, of Mendocino County, California, were charged in a federal indictment with conspiracy to distribute and to possess with intent to distribute 1000 Kilograms or more of marijuana. Gordon was also charged with two counts of structuring fraudulent transactions.
The government alleges that between July 2011 and the present, Gordon obtained large amounts of marijuana from Olea in California and shipped the marijuana to the Boston area via the US Postal Service and Federal Express. Gordon then distributed the marijuana in the Boston area. Jaggon assisted Gordon in the operation which produced millions of dollars in profits, and Gordon and others engaged in various structured financial transactions with the proceeds generated by the sale of that marijuana in Massachusetts and elsewhere.
Under the statute, Gordon and Olea face a mandatory minimum sentence of 10 years in prison and maximum sentence of life, a $10 million fine, and at least five years of supervised release following any period of incarceration. Jaggon faces a maximum sentence of 20 years in prison, a $1 million fine, and at least three years of supervised release. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Shelly A. Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police made the announcement today. Substantial assistance was also provided by Homeland Security Investigations in San Francisco, the Transportation Security Administration, Boston Police Department, Norwood, Randolph, and Needham Police Departments.
The case is being prosecuted by Karen Beausey of Ortiz’s Organized Crime Drug Enforcement Task Force.
The details contained in the Indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.