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5 November 2014
Agilent Technologies, Inc. to Pay $849,678 to Resolve Fraud Allegations of Bid RiggingRead the Press Release
SAN FRANCISCO – Agilent Technologies, Inc. has agreed to pay the government $849,678 to resolve allegations that it submitted false claims to the United States in connection with the sale of electronic measurement instruments, United States Attorney Melinda Haag and Defense Criminal Investigative Service Special Agent in Charge Chris Hendrickson announced today.
In March 2013, Agilent made a voluntary disclosure to the Inspector General of the Department of Defense that certain sales of electronic measurement instruments and systems to the government were the result of improper coordination of pricing and bid strategy between Agilent and its distributors and resellers. During the government’s subsequent investigation, Agilent provided information and materials showing that it entered into agreements with its partners on whether to bid, and what prices to bid, often for the purpose of meeting the requirement under procurement rules that the government consider a minimum of three bids. The settlement agreement resolves the government’s investigation, in which Agilent fully cooperated.
“This settlement demonstrates our continuing commitment to ensure the integrity of the government procurement system. We commend Agilent for its prompt disclosure of improper price coordination, and subsequent cooperation in the government’s investigation.”
The settlement with Agilent was the result of a coordinated effort among the United States Attorney’s Office, Defense Criminal Investigative Service, Defense Contract Audit Agency, and the General Services Administration, Office of Inspector General.
Assistant U.S. Attorneys Steven J. Saltiel and Ann Marie Reding handled the matter on behalf of the U.S. Attorney’s Office.
4 November 2014
Virginia Man Pleads Guilty to Possession of Child PornographyRead the Press Release
And Traveling to Engage in Illicit Sexual Conduct With a Minor
WASHINGTON – Ryan Chord, 35, of Virginia Beach, Va., pled guilty today to federal charges of traveling interstate to engage in illicit sexual conduct with a minor and possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Chord entered the plea in the U.S. District Court for the District of Columbia. The Honorable Christopher R. Cooper is to sentence him on March 3, 2015. Chord faces a statutory maximum of 30 years of imprisonment for traveling interstate to engage in illicit sexual conduct and up to 10 years for possession of child pornography, as well as potential financial penalties.
According to the government's evidence, on Feb. 21, 2014, Chord contacted an undercover officer with the FBI's Child Exploitation Task Force, through a social network site. Over the next few days, Chord engaged in instant messaging with the undercover officer, whom he believed was the father of an under-aged girl. During this period, Chord arranged with the undercover officer to meet for the purpose of engaging in sexual acts with that child.
During the course of their communications, Chord also sent the undercover officer approximately 17 images of child pornography. On March 7, 2014, Chord traveled from Virginia Beach to a pre-arranged meeting place in Washington, D.C. When he arrived at the meeting place, he was arrested.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director in Charge McCabe, and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who is prosecuting the case.
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United States Attorney Wigginton Announces Press Event Relating to Response to Civil Unrest in Our CommunitiesRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that he anticipates that there will be a press conference held on Wednesday, November 5, 2014, at 3:00 PM, at the Jackie Joyner Kersee Center, 1003 North 25th Street, East St. Louis, Illinois.
It is expected that this conference will involve a broad coalition of elected officials, chiefs of police, clergy members, and community leaders from several communities throughout the Metro-East, who will be on hand to discuss their ongoing efforts in addressing racial harmony and to express their common desire for unity and peace in light of the civil unrest occurring in various communities throughout our area and our nation.
United States Attorney Ortiz Appoints District Election Officer to Monitor Integrity of PollsRead the Press Release
BOSTON – United States Attorney Carmen M. Ortiz announced today that Assistant United States Attorney Robert A. Fisher will lead the efforts of her Office in connection with the Justice Department's nationwide Election Day Program for the upcoming November 4, 2014, general elections. AUSA Robert A. Fisher has been appointed to serve as the District Election Officer (DEO) for the District of Massachusetts, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
U.S. Attorney Ortiz said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Carmen M. Ortiz stated that AUSA Robert A. Fisher will be on duty in this District while the polls are open. He can be reached by the public at 617-748-3612.
In addition, the FBI will have special agents available in each field office and resident agency office throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 617-742-5533.
Complaints about possible violations of the federal voting rights laws can be made directly to the Department of Justice Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Carmen M. Ortiz said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Two Men Sentenced in Immigration CasesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Hareshkumar Patel, 44, of Tonawanda, NY, and Pankajkumar Patel, 41, of Geneva, NY, who were convicted of immigration charges, were sentenced by U.S. District Court Judge Richard J. Arcara to time served and one year supervised release.
Assistant U.S. Attorneys Elizabeth Moellering and John E. Rogowski, who handled the case, stated that Hareshkumar Patel and Pankajkumar Patel, both aliens, submitted false statements in immigration matters in September of 2008 and August of 2010 respectively. The defendants filed petitions for a non-immigrant worker with Citizenship and Immigration Services and forged the signature of other individuals.
The sentencings are the culmination of an investigation on the part of Special Agents of the Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge of the Buffalo Office James C. Spero.Trumbull Accountant Involved in Fraud Scheme Is SentencedRead the Press Release
Follow @USAO_CT
The United States Attorney for the District of Connecticut announced that THOMAS RAGONESE, 55, of Trumbull, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to three years of probation, the first six months of which RAGONESE must spend in home confinement on electronic monitoring, for participating in a scheme to defraud a Bridgeport-based residential property owner. He was also ordered to perform 60 hours of community service.
According to court documents and statements made in court, Anthony Testo and his business, ACT Builders, Inc., were contracted to serve as a property manager for an entity in Bridgeport that owned an apartment complex and several single and multi-family residences. Testo’s role as property manager included filling vacant rental units, setting rental amounts, collecting security deposits, collecting rent from tenants and depositing rental payments in the property owner’s bank account. Testo also was required to submit to the property owner a monthly “rent roll,” which was a spreadsheet showing the occupancy of the rental units, the rental amounts due and the rental payments collected from tenants. RAGONESE provided accounting services to Testo and ACT Builders. At Testo’s instruction, RAGONESE prepared the rent rolls.
From approximately January 2007 to August 2010, Testo and ACT Builders, with RAGONESE’s assistance, defrauded the property owner by submitting fraudulent rent rolls that misrepresented that certain rental units were vacant with no rent due when, in fact, the apartments were occupied and rent had been collected. The rent rolls also misrepresented that the rent due and collected for certain rental units was lower than the amount that was actually collected. Testo deposited rental income that was due to the property owner into both his personal bank account and the ACT Builders bank account.
Through this scheme, and also by submitting fraudulent subcontractor invoices to the property owner, Testo defrauded the defrauded the property owner of at least $275,000.
For the 2007 through 2010 tax years, RAGONESE prepared Testo’s federal tax returns, which failed to report the rental income that Testo kept for his own use and benefit. This resulted in a tax loss to the Internal Revenue Service of $71,795.
On July 17, 2014, RAGONESE pleaded guilty to one count of aiding and assisting the preparation and filing of a false tax return.
On June 20, 2014, Testo pleaded guilty to one count of conspiracy to commit wire fraud and one count of assisting in the preparation and filing of a false tax return. Testo also admitted that he failed to report his fraudulent income on his 2007 through 2010 personal federal income tax returns. In addition, Act Builders pleaded guilty to one count of conspiracy to commit wire fraud.
On November 3, 2014, Testo was sentenced to five months in community confinement (halfway house), followed by three years of supervised release, the first six months of which must be served in home confinement. He was also ordered to pay an $18,000 fine, $275,000 in restitution to the victim, and $71,795, plus penalties and interest, to the IRS. ACT Builders was sentenced to five years of probation.
This matter was investigated by the Federal Bureau of Investigation, and the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Felice Duffy.
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(203) 821-3722 [email protected]Trio Charged Federally with Aiding and Abetting Series of RobberiesRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that an Indictment has been filed by a grand jury in Scranton against Charles Conden, age 48, and Cindy Conden, age 28, both of Hanover Township, and James Hughes, age 26, Nanticoke, charging them with aiding and abetting in the commission of multiple robberies.
According to United States Attorney Peter Smith, Jeffrey Townsley, age 43, Kingston, engaged in an 18-day crime spree beginning on December 24, 2013 and ending on January 10, 2014. The crimes included two bank robberies and seven robberies of local businesses. Townsley was arrested on January 10, 2014 and remains in custody in the Lackawanna County Prison.
The indictment returned today charges Charles Conden with aiding and abetting Townsley in the commission of the robberies at Aldi’s Market in Kingston on January 7, 2014, Thomas’ Market in Larksville on January 8, 2014, and the Family Dollar in Ashley on January 10, 2014. Cindy Conden and James Hughes are charged with aiding and abetting Townsley in the commission of the Aldi’s robbery.
The maximum penalties in this case include two years’ incarceration for each robbery, and fines of $250,000.
The indictment today is the result of an investigation by the Federal Bureau of Investigation with the assistance of police departments of Kingston, Kingston Township, Larksville, Hanover Township, Wilkes-Barre, Plains, and Ashley, and the Luzerne County District Attorney Detectives. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Trial Date Set for Cedar Rapids Man Charged with Being an Unlawful Drug User in Possession of FirearmsRead the Press Release
A trial has been scheduled in the case against Kendan Fonville, age 24, from Cedar Rapids, Iowa. Fonville has been charged with two counts of being an unlawful drug user in possession of firearms.
The charges are contained in an Indictment filed on October 30, 2014, in United States District Court in Cedar Rapids. Count 1 of the Indictment alleges that, on or about March 24, 2012, Fonville possessed a stolen AK-47 rifle while he was an unlawful user of marijuana. Count 2 of the Indictment alleges that, on or about August 31, 2012, Fonville possessed a .380 caliber handgun while he was an unlawful user of marijuana.
According to a previously filed criminal complaint, Fonville (aka “Fudd”) allegedly has four prior arrests for possession of marijuana and one prior arrest for possession of crack cocaine. The complaint alleges that, on March 24, 2012, Cedar Rapids Police Officers heard numerous shots being fired as they were approaching the 1400 block of 4th Avenue Southeast. In their investigation, officers allegedly recovered an AK-47 rifle that had been reported stolen and 22 spent rifle casings. Witnesses allegedly reported seeing Fonville fire the rifle.
The complaint also alleges that, on August 31, 2012, Cedar Rapids Police Officers attempted to stop a vehicle. The complaint alleges that, upon initiating the traffic stop, Fonville ran from the driver’s side of the vehicle. The complaint alleges that, during the foot pursuit, officers observed Fonville reaching for his waist band area. Fonville was allegedly lost during the chase. Officers allegedly believed that, during the chase, Fonville was attempting to discard a firearm. The officers allegedly retraced their steps and located a .380 caliber pistol.
If convicted on all charges, Fonville faces a possible maximum sentence of twenty years’ imprisonment, a $500,000 fine, $200 in special assessments, and six years of supervised release following any imprisonment.
Fonville’s next appearance for trial has been set for January 5, 2015.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the FBI Safe Street’s Task Force and the Cedar Rapids Police Department.
Court file information is available at ttps://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-117 LRR.
Thurmont Heroin Dealer Sentenced to 7 Years in PrisonRead the Press Release
Sold Heroin to a Customer Resulting in the Man’s Death
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Jacob Powell, age 21, of Thurmont today to seven years in prison followed by three years of supervised release for conspiracy to distribute and possess with intent to distribute heroin. Judge Quarles also ordered Powell to pay more than $7,000 in restitution, to cover the medical costs and funeral expenses of the person who died after Powell and a co-defendant supplied the victim with heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Frederick County Sheriff Charles A. “Chuck” Jenkins; and Colonel Marcus L. Brown, Superintendent of the Maryland State Police.
According to Powell’s plea agreement, between July 2012 and June 2014, Powell conspired with Myers and others to distribute heroin in western Maryland. Powell and Myers regularly obtained heroin from sources and re-sold that heroin to customers in and around Thurmont and Emmitsburg, Maryland.On June 11, 2013, Myers and Powell sold heroin to Derek Dunsmore in Emmitsburg. The heroin Myers and Powell sold caused the death of Derek Dunsmore.
Kathleen Elizabeth Myers, age 21, of Thurmont, Maryland, previously pleaded guilty to the same charge and was sentenced on October 29, 2014 to seven years in prison.
United States Attorney Rod J. Rosenstein praised the DEA, Frederick County Sheriff’s Office, Maryland State Police and the Frederick County Narcotics Task Force for their work in the investigation and thanked Special Assistant U.S. Attorney Anthony J. Enright and Assistant U.S. Attorney Robert R. Harding, who prosecuted the case.Three Convicted in Federal Court for Their Role in a Nationwide Timeshare Telemarketing Fraud Scheme Targeting the ElderlyRead the Press Release
United States Attorney James L. Santelle of the Eastern District of Wisconsin, announced today that following a six day jury trial, Jason D. Schultz (age: 31), and Jessica M. Gilbert (age: 25) of Green Bay, Wisconsin, as well as Jessica Weinhart (nee Hensen) (age: 31) of Neenah, Wisconsin were convicted of conspiracy to commit mail and wire fraud. The jury further found that they had engaged in a telemarketing scheme that defrauded at least 10 individuals over the age of 55 thus subjecting each to enhanced penalties under the “Senior Citizens Against Marketing Scams” or SCAMS Act. Each faces a maximum term of imprisonment of 30 years. Sentencing hearings have been scheduled for January 27, 2014, before Chief District Court Judge William C. Griesbach, at the federal courthouse in Green Bay, Wisconsin.
The evidence presented at trial proved that each of the defendants participated in a fraudulent timeshare resale telemarketing scheme located in Green Bay, Wisconsin, which resulted in over three thousand victims in all fifty states and Canada being defrauded of approximately $2.5 million. The fraudulent scheme spanned from April 2007 to April 2011, and operated under several different business entities, including: Integrated Advertising Solutions, National Timeshare Resales, Administrative Timeshare Resales, and Midwest Timeshares. Numerous witnesses and victims testified that timeshare owners, most of them elderly, were contacted by telemarketers and told that “interested buyers” were prepared to purchase their timeshares in exchange for upfront fees ranging from a few hundred dollars to a few thousand dollars. After handing over their payment information, victims received a one page contract which informed them that they were merely paying for “advertising” on the company’s website. Evidence showed that telemarketers determined the fee amount based solely on the vulnerability and susceptibility of the victims to their untruthful sales pitch. Victims that contacted the companies seeking a refund or inquiring about the status of the sale of their timeshare were repeatedly told lies or given excuses designed to keep them from contacting their financial institution and stopping payment to the fraudulent entities. Twelve victims from around the country ranging in age from sixty-nine to ninety-one testified at trial that they were guaranteed buyers in exchange for the up-front fee. Several of the victims testified that they had been defrauded by similar schemes in the past.
Five other individuals previously plead guilty for their participation in the timeshare resale telemarketing fraud, including the primary figure in the scheme, Mark S. Parks. All are currently awaiting sentencing.
This case was a joint investigation by the Federal Bureau of Investigation and the U.S. Postal Inspection Service, with assistance from the Better Business Bureau, and the Wisconsin Department of Agriculture Trade and Consumer Protection. This case was prosecuted by Assistant United States Attorneys Matthew L. Jacobs and Daniel R. Humble.
Over the past decade similar timeshare resale telemarketing schemes have grown exponentially, due to a glut of timeshare ownership and rising maintenance fees. Many of these fraudulent schemes are operated by companies based in Florida and Nevada. Timeshare owners receiving solicitations to sell or advertise their ownership interests should contact the Federal Trade Commission, United States Postal Inspection Service, local FBI office, their State’s office of consumer protection, or State Attorney General’s office.
Three Convicted of Drug Trafficking OffensesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistELKINS, WEST VIRGINIA – Three West Virginia residents pled guilty in federal court to drug trafficking offenses, United States Attorney William J. Ihlenfeld, II, announced today
Jeremiah Dustin Dean, 33, of Moorefield, West Virginia, was discovered with oxycodone pills during the course of an investigation by the West Virginia State Police and the Potomac Highlands Drug and Violent Crime Task Force. He pled guilty today to one count of “Possession with Intent to Distribute Oxycodone.” He faces up to 20 years in prison and a fine of up to $1,000,000.00.
Mindy Rachelle Leary, 26, of Durbin, West Virginia, and Justin Gregory Riffe, 24, of Bartow, West Virginia, admitted to distributing pseudoephedrine, a component used to manufacture methamphetamine. They each pled guilty to one count of “Distribution of a Laboratory Supply, Knowingly to Manufacture Methamphetamine” Each defendant faces up to one year in prison and a fine of up to $100,000.00.
Assistant U.S. Attorney Steve Warner is prosecuting the cases on behalf of the government.
U.S. Magistrate Judge John S. Kaull presided.
Tampa Woman Sentenced to More Than Four Years for Tax FraudRead the Press Release
Tampa, FL – U.S. District Judge Mary S. Scriven today sentenced Erica Lambert (31, Tampa) to four years and two months in federal prison for conspiracy to defraud the United States Treasury, and to commit wire fraud in connection with filing fraudulent tax returns. She was also ordered to pay restitution to the IRS in the amount of $499,923. Lambert pleaded guilty on July 25, 2014.
According to court documents, Lambert, along with others, electronically filed tax returns using stolen and fraudulently obtained means of identification. Lambert and her co-conspirators kept track of the fraudulent returns and refunds in detailed ledgers that were found at Lambert’s residence. The fraudulent tax refunds were issued in the form of U.S. Treasury checks and debit cards in other individuals’ names. Lambert and her co-conspirators used the refunds to obtain cash and goods for their personal use.
On January 21, 2014, co-conspirator Earl Rojelio Blanchett was sentenced to 10 years and four months in federal prison for his role in this tax fraud scheme. According to court documents, Blanchett sold seven Treasury checks, with a face value of more than $77,000, to undercover law enforcement agents.
This case was investigated by the FBI, IRS – Criminal Investigation, the Hillsborough County Sheriff’s Office, and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Kelley Howard-Allen.
St. Louis County Man Pleads Guilty to Tax and Weapons ChargesRead the Press Release
St. Louis, MO – JOEY D. WOOD pled guilty to filing four false tax returns for himself and two others claiming refunds totaling over $23,000 for tax years 2011 and 2012.
According to court documents, Wood, who was engaged in the business of preparing income tax returns for individuals, filed false tax returns for himself claiming refunds for 2011 and 2012, and filed false returns claiming refunds for two other people for 2011. Additionally, on May 17, 2013, Wood was in possession of a firearm. Due to a previous felony conviction, he is prohibited from owning or possessing firearms.
"The object of this refund scheme was to steal from the government and the taxpaying public," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. "The prosecution of these crimes is a vital element in maintaining public confidence in our tax system."
Wood, St. Louis County, Missouri, pled guilty to four felony counts of making false statements to the government and one felony count of being a previously convicted felon in possession of a firearm. He appeared before United States District Judge Catherine D. Perry. Sentencing has been set for January 20, 2015.Each of the tax counts carry a maximum penalty of 5 years in prison and/or fines up to $250,000, the firearms charges carries a maximum of 10 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by IRS Criminal Investigation, the St. Louis County Police Department and the Missouri Department of Revenue. Assistant United States Attorney Steven Muchnick is handling the case for the U.S. Attorney's Office.
Springfield Woman Sentenced for Assaulting Federal Agent with her CarRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., woman was sentenced in federal court today for assaulting a federal agent with her car while he was attempting to apprehend her boyfriend during a foot chase.
Alisha Johnson, 33, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to six years and six months in federal prison without parole. The court also ordered Johnson to pay $9,926 in restitution to the agent who was injured and $14,886 in restitution to the Office of Workers’ Compensation Programs.
On July 25, 2013, U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) agents were attempting to apprehend Francisco Sosa-Lopez for immigration violations. When Sosa-Lopez saw the approaching agents, he fled the area on foot. While the agents were pursuing Sosa-Lopez, Alisha Johnson arrived in her vehicle and attempted to pick up Sosa-Lopez.
As Sosa-Lopez attempted to get in the vehicle, Johnson shouted derogatory comments at the pursuing agents, indicating that she was aware of the agents’ intent to apprehend Sosa-Lopez. Agents continued the pursuit and ordered Sosa-Lopez to not enter the vehicle. Sosa-Lopez ignored the agents’ directives and continued to try to enter the rolling vehicle. As one of the agents approached Sosa-Lopez, Johnson drove her vehicle over the curb and into the agent, striking the agent on the left leg. Sosa-Lopez entered the vehicle and fled from the scene; he remains a fugitive from justice. Johnson voluntarily surrendered to law enforcement shortly after the incident.
As result of being struck by the vehicle, the federal agent suffered significant damage to his knee. Two surgeries were later performed on his knee.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) and the Greene County, Mo., Sheriff’s Department.Spokane Area Fraudster Sentenced to 108 MonthsRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Senior United States District Court Judge Robert H. Whaley sentenced Doris E. Nelson, 55 of Colbert, Washington, to a 108-month term of imprisonment after having previously entered guilty pleas in April, 2014 to 110 charges related to Wire Fraud, Mail Fraud, and International Money Laundering connected to a massive scheme that Nelson operated. Judge Whaley also sentenced Nelson to a three-year term of court supervision after she is released from Federal prison. A restitution hearing will be scheduled within 90 days.
Nelson admitted the allegations set forth in the Superseding Indictment – that she ran a fraud scheme for over eight years and took in approximately $137 million from at least 650 investors worldwide. As alleged, Nelson operated an unprofitable payday and short-term lending business, known as the Little Loan Shoppe, which she began in British Columbia, Canada in approximately 1997 and which she continued in Spokane, Washington beginning in approximately 2001. Despite the Little Loan Shoppe’s unprofitability, Nelson solicited hundreds of investors by leading them to believe, falsely, that her payday loan business was profitable and that her business profits allowed her to pay investors a 40% to 60% (and up to as much as 75%) annual return. Nelson claimed that these astronomical returns would be paid from the profits of the Little Loan Shoppe. Nelson also made numerous false and fraudulent statements about the Little Loan Shoppe in order to induce investors. She communicated with her investors in person, by telephone, by email, and through the mails. Nelson solicited investors who resided throughout the United States and in international locations, including Canada and Mexico.
Rather than paying her investors returns from a profitable business as Nelson had claimed, investors were paid “interest” with their own money or the money of other investors. In contrast to her consistent representations, Nelson was operating a massive fraud scheme where investors’ individual returns were paid using their own investments or monies paid by other investors. Investor funds rarely, if ever, were used to fund new customer loans, as Nelson assured investors they would be, and the Little Loan Shoppe lending operations did not generate profits from which investor payments could be made. As Nelson developed a history of paying investors “lulling payments” from subsequent investments, her track record became the single most persuasive factor for additional investors. In this way, Nelson’s scheme to defraud grew rapidly until it could no longer sustain itself. The scheme collapsed in 2008, when the flow of new funds could no longer support the payments required on the earlier investments and Nelson abruptly announced that all investments would be changed to a 10% interest rate. Nelson ended most payments to investors around this time, and by February 2009 she suspended all payments.
Nelson’s scheme resulted in personal withdraws of investor money of approximately $4.3 million. With these proceeds, she funded a lavish lifestyle for herself and her family. For example, Nelson spent approximately $223,000.00 in St. John Knits stores located in Las Vegas, Nevada, New York, Honolulu, and Beverly Hills as well as approximately $217,000.00 in purchases from Nordstrom. She also spent approximately $58,000.00 on art work while on a cruise in 2006. Nelson also incurred substantial gambling losses -- approximately $432,000.00 in 2008, and approximately $960,000 in 2007, at the MGM Grand Casinos in Las Vegas.
As Nelson’s fraudulent scheme began to collapse in 2008, Nelson’s investors forced the Little Loan Shoppe into bankruptcy in the summer of 2009. Shortly thereafter, the scheme was brought to the attention of IRS-CI, the FBI, and the United States Attorney’s office. An investigation was commenced and in April, 2010, agents with the IRS-CI and the FBI seized, among other assets, cash, a Mercedes Benz, a Corvette, and jewelry from her residence.
Michael C. Ormsby said, “The nine year sentenced imposed in this case reflects the seriousness of ‘white collar’ crime and that those accused of defrauding others will be fairly and justly held accountable for their criminal conduct. This case is yet another example of the commitment of the United States Attorney’s Office to prosecute aggressively fraud cases in the Eastern District of Washington. The federal agencies, including the IRS Criminal Investigation and the FBI, are commended for their tireless efforts in thoroughly investigating this case.
"The victims in this case suffered unimaginable harm, many losing their life's savings," said Special Agent in Charge Teri Alexander of IRS Criminal Investigation. "It is difficult to say what motivated Doris Nelson to take advantage of her client's trust. This type of unchecked fraud corrodes our nation's economy and wreaks havoc on the lives of the victims. IRS Criminal Investigation together with our partners at the FBI and Department of Justice are vigilantly on the lookout for would-be swindlers."
This case was investigated by the Internal Revenue Service-Criminal Investigations and the FBI. The sentencing in this case was handled by Caitlin A. Baunsgard, an Assistant United States Attorney for the Eastern District of Washington.
11-CR-00159-RHW
South Lake Tahoe Man Sentenced to One Year in Prison for Workers’ Compensation FraudRead the Press Release
SACRAMENTO, Calif. — Mark E. Leung, 60, of South Lake Tahoe, was sentenced today by United States District Judge John A. Mendez to one year in prison and ordered to pay $160,000 in restitution for making a false statement to obtain workers’ compensation benefits, United States Attorney Benjamin B. Wagner announced.
According to court documents, Leung worked for the United States Postal Service until 1987 when he claimed he sustained a work-related injury. Leung never returned to full-time employment with the Postal Service and began receiving workers’ compensation benefits in 1987. From September 2007 through November 2012, Leung received approximately $160,000 in benefits from the Department of Labor, which administers the program for the United States Postal Service. To obtain the benefits, Leung submitted an annual certification form and also had his medical providers attest that he could not perform any work due to the pain that limited his mobility and range of movement. In fact, Leung was not so disabled. Among other things, while claiming he was totally disabled from employment, Leung maintained a yearly ski pass for Heavenly Ski Resort in Lake Tahoe where he regularly skied for at least 40 days per ski season. Moreover, Leung was as also observed performing arduous physical labor on numerous days.
This case was the product of an investigation by the United States Postal Service, Office of Inspector General and the Department of Labor, Office of Inspector General. Assistant United States Attorney Todd Pickles prosecuted the case.
Rwandan Refugee Who Became Naturalized Citizen Is Indicted for Naturalization FraudRead the Press Release
Ken Ngombwa, 54, from Cedar Rapids, Iowa, has been charged with one count of unlawfully procuring or attempting to procure naturalization or citizenship; one count of procuring citizenship to which he was not entitled; one count of conspiracy to unlawfully procure citizenship; and one count of making a materially false statement to agents of the United States. The charges are contained in an Indictment unsealed today, in United States District Court in Cedar Rapids, following the arrest of Ngombwa without incident in Cedar Rapids.
The Indictment alleges that beginning in at least March 1998 and continuing through at least November 19, 2004, Ngombwa attempted to procure citizenship for himself and family members who accompanied him to the United States from Rwanda. According to the Indictment, Ngombwa and others made a number of false statements that were relied upon by United States immigration authorities in deciding to grant Ngombwa refugee status and permanent resident alien status; which eventually permitted Ngombwa to become a naturalized citizen of the United States. The alleged false statements included a claim that Ngombwa is the brother of Faustin Twagiramungu, a former Prime Minister of Rwanda.If convicted on all counts, Ngombwa faces a possible maximum sentence of 30 years’ imprisonment, a $1,000,000 fine, $400 in special assessments, and 12 years of supervised release following any imprisonment. Ngombwa also faces loss of citizenship.
Ngombwa appeared today in federal court in Cedar Rapids and was released on bond. Ngombwa was ordered to: surrender any passport or travel documents; not travel outside of Linn County, Iowa; have no contact with potential witness concerning the case; and undergo a mental health evaluation. Other standard conditions of release were also imposed.
As with any criminal case, a charge is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by Homeland Security Investigations.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-00123.
Rockwall Man Pleads Guilty to Federal Child Pornography Offense Involving Images of Prepubescent ChildrenRead the Press Release
DALLAS — A 32-year-old Rockwall, Texas, man appeared this morning in federal court, before U.S. Magistrate Judge Irma C. Ramirez, and pleaded guilty to an indictment charging one count of possession of prepubescent child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Christopher Michael Burgess, who remains in federal custody, faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. Sentencing is set for April 20, 2015, before U.S. District Judge Sam A. Lindsay.
According to documents filed in the case, in May 2013, an individual (mother) looked on Burgess’s computer, found child pornography, and immediately took the computer to the Rockwall Police Department. Based on this individual’s report, the officer was able to secure a warrant to search the computer’s content.
The North Texas Regional Computer Forensic Lab examined the hard drive and located more than 500 images and 10 videos of child pornography, some videos involving infants. Burgess admits that some of the videos he collected depicted sadistic and/or violent content.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI and the Rockwall Police Department investigated. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Rochester Man Sentenced on Fraud ChargesRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Chauncee McFarland, 36, of Rochester, NY, who was convicted of conspiring to defraud the United States by filing false tax returns and to defraud financing companies, was sentenced to 30 months in prison by U.S. District Judge David G. Larimer. The defendant was also ordered to pay restitution totaling $408,651.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that from 2010 to 2012, McFarland owned McFarland Tax Company, a tax return preparation business. The defendant conspired with an employee, Kenyatta Hubbard, to prepare false income tax returns for clients. McFarland and Hubbard reported fictitious employment in order to increase the Earned Income Tax Credit refunds claimed on behalf of the clients.
Thereafter, from September 2012 to September 2013, acting on his own as a licensed insurance broker, McFarland devised a scheme to defraud premium finance companies. Premium finance companies engage in the business of lending money to finance insurance policy premiums for clients. McFarland prepared fraudulent premium finance agreements that falsely represented that he was seeking to obtain financing for purported clients. Based upon the fraudulent documents, the companies provided the requested financing. The defendant then diverted the financing to his personal use, and did not use it to purchase insurance policies for any clients. In total, McFarland defrauded the IRS and financing companies of $408,651.
Kenyatta Hubbard was convicted for her role in the conspiracy to prepare false income tax returns for clients and sentenced to five years probation.
Sentencing is the culmination of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office, Special Agents of the U.S. Postal Inspection Service, Boston Division, under the direction of Inspector in Charge, Shelly A. Binkowski, and Investigators of the New York State Department of Financial Services, under the direction of Superintendent Benjamin Lawsky.Readout of Attorney General Holder's Visit to the Civil Rights Division's Voting SectionRead the Press Release
The following statement is attributable to Justice Department spokesman Brian Fallon regarding Attorney General Eric Holder’s visit to the Civil Rights Division’s Voting Section this election day:
“This afternoon, Attorney General Holder visited the offices of the Civil Rights Division’s Voting Section, which are located in downtown Washington. The Attorney General thanked the lawyers and staff for monitoring calls and fielding election-related complaints of potential violations of federal voting laws. The Attorney General told them their work is among the most critical responsibilities that the Department performs.
“The Civil Rights Division enforces a range of voting-related statutes, including the Voting Rights Act, the National Voter Registration Act, the Uniformed and Overseas Citizens Absentee Voting Act and the Help America Vote Act. Lawyers in the division’s Voting Section have been staffing a hotline since early this morning, fielding calls from across the country.
“In addition to monitoring calls to the Voting Section, the department has dispatched federal poll monitors to 28 jurisdictions across 18 states to gather information on numerous aspects of local election procedures. The Justice Department will continue to work in a fair and nonpartisan manner to ensure that every voter can cast his or her ballot free of intimidation, discrimination or obstruction.”
Puerto Rico Man Sentenced to 14 Months in Prison for Attempting to Bring Guns into St. Thomas on AircraftRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez today sentenced Emmanuel Benel Cuadrado, 24, to 14 months in prison for the attempted illegal transportation of guns from Puerto Rico to the Virgin Islands, announced United States Attorney Ronald W. Sharpe and Immigration and Customs Enforcement, Homeland Security Investigations (HSI) Special Agent in Charge Angel Melendez.
On June 10, 2014, Cuadrado, a resident of Puerto Rico, pleaded guilty to count two of a twocount information charging him with the attempted transportation of firearms on an aircraft. Court records show that on April 13, 2014, Cuadrado traveled from Puerto Rico to St. Thomas on a Jet Blue flight and checked a box containing three firearms. United States Customs and Border Protection officers and Homeland Security Investigations agents intercepted the firearms prior to the flight’s departure from Puerto Rico to St. Thomas. The three firearms were removed from the box and replaced with two fake firearms. Upon the flight’s arrival in St. Thomas, Cuadrado retrieved the box from the airport’s baggage claim area and was arrested.
In addition to 14 months in prison, Cuadrado received three (3) years supervised release, and was ordered to pay $100 special assessment. He was immediately remanded to the custody of the U.S. Marshals Service.
This case was investigated by HSI, and prosecuted by Assistant U.S. Attorney Everard E. Potter.
Owner of Regional Healthcare, Llc Charged with $2.5 Million Tax FraudRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that CHARLES A. LANPHIER, age 68, of Lafayette, Louisiana, has been charged in a Bill of Information with two counts of failing to truthfully account for and pay over taxes, in violation of Title 26, United States Code, Section 7202. If convicted, LANPHIER faces significant incarceration, fines, and restitution orders.
The Bill of Information alleges that, during the relevant time period, LANPHIER owned and operated Regional Healthcare, LLC, a company headquartered in Baton Rouge, with operations throughout Louisiana and Florida. According to the Bill of Information, Regional consisted of four divisions, which provided patient care assistance, home health services, extended home health services (also known as pediatric care), and hospice services. During the tax years 2008 through 2011, LANPHIER allegedly withheld tax payments from his employees’ paychecks, but failed to pay over to the Internal Revenue Service more than $2.5 million of such withheld money.
This matter is being handled by the United States Attorney’s Office for the Middle District of Louisiana and the Baton Rouge office of the Internal Revenue Service, Criminal Investigations. It is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Chief in the Criminal Division.
NOTE: A Bill of Information is an accusation by the U.S. Attorney’s Office. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Orlando Man Convicted on Multiple Fraud and Theft ChargesRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces today that a federal jury found Joseph Witchard (55, Orlando) guilty of nine counts of mail fraud, six counts of filing false claims against the United States, six counts of theft of government property, and nine counts of aggravated identity theft. He faces a maximum penalty of 20 years in prison on each mail fraud count, 5 years’ imprisonment on each false claims count, 10 years in prison on each of the theft of government property counts, and an additional 2 years’ imprisonment for the aggravated identity theft charges. A sentencing hearing is set for January 26, 2015.
According to evidence presented at trial, Witchard orchestrated two mail fraud schemes, one to steal retirement funds and life insurance proceeds, and another to file fraudulent tax returns. During both schemes, he used identities that had been stolen from a variety of sources. The personal identifying information of more than 60 victims was found during a search of Witchard’s residence in February 2010. Witchard, and others, negotiated the retirement, life insurance, and tax refund checks at local businesses, including car dealerships.
This case was investigated by the United States Postal Inspection Service, IRS - Criminal Investigation, and the United States Secret Service. It is being prosecuted by Assistant United States Attorney E. Jackson Boggs, Jr.
Northampton County Woman Charged with Stealing Dead Mother's BenefitsRead the Press Release
Frances Riley, 78, of Bath, Pennsylvania, was charged by Information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the Information, the defendant received retirement benefits intended for her mother, after her mother’s death in February 1994 until the defendant’s fraud was discovered in 2011. The defendant’s alleged actions resulted in a loss to the government of approximately $152,600.90.
If convicted, the defendant faces a maximum possible sentence of 10 years imprisonment, a 3-year period of supervised release, restitution to the government of $152,600.90, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Northampton County Woman Charged with Stealing Dead Mother's BenefitsRead the Press Release
Frances Riley, 78, of Bath, Pennsylvania, was charged by Information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the Information, the defendant received retirement benefits intended for her mother, after her mother’s death in February 1994 until the defendant’s fraud was discovered in 2011. The defendant’s alleged actions resulted in a loss to the government of approximately $152,600.90.
If convicted, the defendant faces a maximum possible sentence of 10 years imprisonment, a 3-year period of supervised release, restitution to the government of $152,600.90, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to read the information.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Non-Indian Man Sentenced to Ten Years for Conviction on Assault and Firearms Charges Arising Out of Shooting at Isleta Pueblo ResidenceRead the Press Release
ALBUQUERQUE – Federico Lujan, 27, of Serafina, N.M., was sentenced this morning to ten years and two days in federal prison followed by two years of supervised release for his conviction on assault and firearms charges. The sentence was announced by U.S. Attorney Damon P. Martinez, Acting Special Agent in Charge William McClure, of District IV of BIA’s Office of Justice Services, and Chief Kevin Mariano of the Isleta Pueblo Tribal Police Department.
Lujan, a non-Indian man, was arrested on July 5, 2012, on a criminal complaint alleging aggravated assault charges arising out of the discharging of a rifle while threatening and menacing two Isleta Pueblo women and ten children in an Isleta Pueblo residence. Lujan subsequently was indicted and charged with two counts of aggravated assault and one count of discharging a firearm in relation to a crime of violence.
On Feb. 21, 2014, a federal jury returned a verdict finding Lujan guilty on all three counts of the indictment after a four-day trial. The trial evidence established that on the morning of July 5, 2012, Lujan drove to the victims’ residence armed with a .22 caliber rifle loaded with a high-capacity magazine carrying almost 50 rounds of ammunition. After Lujan got out of his vehicle with the loaded rifle, one of the two adult victims peered out the window to see a stranger with a rifle standing in her yard. The adult victim heard shots fired as she ran to get the children who were in the residence to safety.
While one adult victim stayed in the home to protect the ten children who were in the home, the other adult victim went outside to try to defuse the situation. While speaking to Lujan, the victim learned that Lujan was shooting at the residence because someone had taken his baseball cap from him the night before and he believed the cap was inside the residence. When the victim denied knowing about the baseball cap, Lujan pointed the rifle at her, threatened to kill her, and fired his rifle again but did not hit the victim. As Lujan drove away, the victim got the license plate number for Lujan’s vehicle. Lujan was arrested shortly thereafter by tribal police officers who were responding to a call from the victims. Following the arrest, the officers found a rifle in Lujan’s vehicle.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and the Isleta Pueblo Tribal Police Department, with assistance from the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the FBI’s crime lab in Quantico, Va., and was prosecuted by Assistant U.S. Attorney Holland S. Kastrin and former Assistant U.S. Attorney Mark T. Baker.
New York Resident Detained in Rhode Island on Federal Firearm ChargeRead the Press Release
PROVIDENCE, R.I. – Mathew A. Soscia, 23, of Larchmont, New York, has been ordered detained in federal custody on a criminal complaint charging him with being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.
Soscia was arrested late Saturday when Rhode Island State troopers affected a traffic stop after allegedly witnessing Soscia’s vehicle traveling at a high rate of speed and crossing several lanes of traffic while heading south along Route 95 in Exeter, and then discovered a loaded firearm in the trunk of his vehicle.
According to an affidavit in support of a criminal complaint filed with the court, it is alleged that late Saturday evening Rhode Island State Police received a report of a vehicle traveling south on Route 95 in the vicinity of Route 4 at speeds in excess of 100 miles per hour. Shortly after the information was relayed to troopers out on the highway, two troopers who had affected an unrelated traffic stop observed a vehicle pass by them which matched the description of the vehicle reported to be traveling in excess of 100 miles per hour. The troopers activated their dash mounted radar which recorded the vehicle’s speed at 86 miles per hour.
According to the affidavit, the troopers pursued the vehicle as it continued to travel at a high rate of speed while crossing across several lanes. The troopers affected a traffic stop along Route 95 in Exeter. A criminal history check of the driver, Mathew Soscia, revealed a lengthy criminal history, including prior convictions on robbery and weapons charges. With Soscia’s permission, the troopers searched the vehicle and discovered a loaded .40 caliber Glock handgun with a mounted laser sight inside a duffel bag in the trunk of the vehicle.
According to the affidavit, Soscia admitted to the troopers that the firearm belonged to him and that he did not have a permit for the firearm.
Soscia was ordered detained in federal custody following an initial appearance on Monday before U.S. District Court Magistrate Judge Patricia A. Sullivan on a charge of being a felon in possession of a firearm.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Adi Goldstein.An agent from the Bureau of Alcohol, Tobacco, Firearms and Explosives assisted Rhode Island State Police in the investigation of this matter.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]New Jersey Pair Charged with Production of Child PornographyRead the Press Release
PHILADELPHIA - Burton Gersh, 68, and Les Sidweber, 73, both of Cherry Hill, NJ, were charged today by indictment with two counts each of production of child pornography, announced United States Attorney Zane David Memeger.
According to court documents, Gersh and Sidweber transported two minors, ages 16 and 17, from the Philadelphia area, on multiple occasions, to their homes in Cherry Hill, where Sidweber photographed the juveniles engaging in sexually explicit conduct at Gersh's behest.
If convicted the defendants face a mandatory minimum term of 15 years in prison, with a maximum possible sentence of 60 years in prison, a $500,000 fine, a period of supervised release of five years to life, and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation with assistance from the Cherry Hill, New Jersey Police Department and is being prosecuted by Assistant United States Attorney Michelle Morgan.
An Indictment or an Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to read the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525- Militia Men Indicted
Michigan Man Sentenced for Embezzling More Than $2.3 Million from Vineyards Development Corp. in NaplesRead the Press Release
Fort Myers, Florida – United States District Judge Sheri Polster Chappell yesterday sentenced Alfred W. Lenz (68, Montague, Michigan) to four years and nine months in federal prison for wire fraud. He also was ordered to forfeit his interest in a house located in Montague, and the contents of a retirement account that were traceable to proceeds of the offense. In addition, the Court ordered Lenz to pay $2,380,465.11 in restitution to the victim and imposed a forfeiture money judgment in that amount. The government intends to seek permission to turn over any recovered funds to the Clerk of the Court for distribution to the victim. Lenz pleaded guilty on June 11, 2014.
According to court documents, Lenz was the Controller for the Vineyards Development Corporation (VDC) in Naples, Florida from March 31, 2005, until April 27, 2012. Between January 11, 2007, and December 9, 2010, he embezzled a total of $2,380,465.11 from the VDC. He then used the money to buy real estate and for other personal expenses.
This case was investigated by the United States Secret Service and the Collier County Sheriff’s Office’s Economic Crimes Unit, with assistance from the Office of the State Attorney for the Twentieth Judicial Circuit. It was prosecuted by Assistant United States Attorney David G. Lazarus.
Mexican National Found Guilty of Marijuana Grow OperationRead the Press Release
Boise - Juan Pablo Villasenor-Villa, 28, a Mexican national, was convicted today following a one-week jury trial in federal court in Boise on five charges related to his operation of a marijuana grow operation in two locations in the Boise National Forest and his possession with intent to distribute the marijuana harvested from those operations, U.S. Attorney Wendy J. Olson announced. Federal and state law enforcement officers eradicated nearly7,000 plants when the marijuana grow operations were found on Little Beaver Creek and Rabbit Creek in September 2013.
The jury convicted Villasenor-Villa on two counts of manufacturing more than 1,000 marijuana plants, one count of possession with intent to distribute more than 100 kilograms of a controlled substance, one count of operating a continuing criminal enterprise and one count of causing more than $1,000 in damage to public lands. The jury heard evidence during the case that Villasenor-Villa purchased irrigation equipment with cash, drove other defendants into and out of the marijuana grow operations, drove packaged marijuana from the Little Beaver Creek site to a residence in Canyon County and gave direction to his wife and co-defendant Mariah Villasenor-Rodriguez to remove cash from their residence in Canyon County. The jury found Villasenor-Villa not guilty on two counts of aiding and abetting the possession of firearms recovered in the marijuana grow sites.
“The jury’s verdict sends a strong message that those who use and damage our public lands for unlawful purposes and those who traffic in illegal drugs will face swift and sure consequences in Idaho,” said Olson. “The jury found that this defendant operated a criminal enterprise in the Boise National Forest and that his enterprise damaged this precious public resource.”
Each charge of manufacturing more than 1,000 marijuana plants with intent to distribute carries a penalty of not less than ten years up to life in prison, a maximum fine of $10 million, and at least five years of supervised release. The charge of possession with intent to distribute more than 100 kilograms of marijuana carries a penalty of not less than five years and up to 40 years in prison, a maximum fine of $5 million and at least three years of supervised release. The charge of operating a continuing criminal enterprise carries a penalty of not less than 20 years in prison, a maximum fine of $2 million and up to five years of supervised released. The charge of causing more than $1,000 damage to public lands carries a penalty of up to ten years in prison, a maximum fine of $250,000 and up to three years supervised release.
Villasenor-Villa’s sentencing is scheduled for February 4, 2015, in front of U.S. District Chief Judge B. Lynn Winmill, who presided over the trial.
Five co-defendants previously pleaded guilty, and two have been sentenced. The defendant’s wife, Mariah Villasenor-Rodriguez, 22, of Caldwell, pleaded guilty in federal court to possession with intent to distribute and was sentenced on August 8, 2014, to 21 months in prison and three years of supervised release. Gilberto Duran-Contreras, 51, a Mexican national, pleaded guilty in federal court to unlawfully manufacturing more than 1,000 marijuana plants, and damage to government land and was sentenced on July 8, 2014, to 30 months in prison.
Marcos Solano-Farias, 32, and Jose Misael Ayala-Talavera, 20, both Mexican nationals, pleaded guilty to charges of unlawful manufacture with intent to distribute more than 1,000 marijuana plants, illegal possession of a firearm, and damage to government property. Carlos Cerda-Carpio, 40, pleaded guilty in federal court to unlawfully manufacturing more than 1,000 marijuana plants with intent to distribute and illegal possession of a firearm. All three are set for sentencing on December 3, 2014. Duran-Contreras, Solano-Farias, Ayala-Talavera, and Cerda-Carpio, all were arrested in or near the marijuana grow operations on September 11, 2013. Investigators also found and seized two semi-automatic handguns and an AK-47 type rifle at the Rabbit Creek camp.
Olson praised the cooperative law enforcement investigation in this case. “Through the combined work of the OCDETF Task Force agencies and particularly here the Drug Enforcement Administration, Bureau of Land Management, U.S. Forest Service, Ada and Boise County Sheriff’s Offices, and Nampa Police Department, we together removed this danger to our community and to our public land. I also commend the private citizens who observed the unusual cash purchases of bulk irrigation equipment and contacted law enforcement. Marijuana grow operations such as those identified and removed in this case pose a significant danger to all in Idaho who seek to use our national forests for hiking, hunting and recreation purposes.”
The case was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration, in conjunction with, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Canyon County Narcotics Unit, Meridian Police Department, Ada County Sheriff’s Office, Idaho State Police, and the Mini-Cassia Drug Task Force.
The OCDETF program is a federal multi agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Man Sentenced for Fraudulent Use of U.S. Residency CardRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Julio Montes Ceballo, 46, a resident of the Dominican Republic, pleaded guilty to fraudulent misuse of a U.S. Permanent Resident Card before U.S. District Court Judge, Richard J. Arcara. The defendant was then sentenced to time served and one year supervised release by Judge Arcara.
Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that on May 21, 2014, Ceballo was arrested at the Peace Bridge when he attempted to enter the United States. The defendant was using a U.S. Permanent Resident Card bearing the name of another person. A fingerprint scan revealed that Ceballo was not the person named on the card he presented.
The plea and sentencing are the culmination of an investigation on the part of Enforcement Officers of the United States Customs and Border Protection under the direction of Randy Howe, Director of Field Operations.- Man Charged with Failing to Pay $1.8 Million in Federal Tax Withholdings
Longview, Washington, Landlords Agree to Settle Disability Discrimination LawsuitRead the Press Release
The Justice Department today announced that Longview, Washington, landlords Linda and Bert Barber, and their management agent, Lori Thompson, have entered into a consent decree and have agreed pay $25,000 to resolve claims that they discriminated on the basis of disability by refusing to grant a reasonable accommodation to waive a $1,000 pet deposit for a tenant with mental disabilities who needed a dog as an emotional support animal.
The consent decree resolves a lawsuit filed by the department on July 1, 2013, alleging that the defendants refused to grant a waiver of the pet deposit despite numerous attempts by the tenant to provide documentation of her disability and her need for the emotional support animal. The complaint also alleged that the defendants retaliated against the tenant after she filed a complaint with the U.S. Department of Housing and Urban Development (HUD). After HUD investigated the complaint, it issued a charge of discrimination and referred the matter to the Justice Department. The department’s complaint also alleged that defendants’ policies constituted a pattern or practice of discrimination in violation of the Fair Housing Act because they allowed reasonable accommodations for specially-trained service animals but precluded reasonable accommodations for emotional support animals. Defendants also refused to consider accommodation requests unless tenants had their physician complete forms that threatened penalty of perjury and threatened to require the physician to defend the information provided in court. Trial was set to begin on Nov. 19.
The settlement, which was approved today by Judge Benjamin H. Settle, requires the defendants to pay $20,000 to the HUD complainant and $5,000 to the United States. The settlement also requires that the defendants adopt a reasonable accommodation policy that complies with the Fair Housing Act, receive training on the requirements of the Fair Housing Act and report to the department for a period of eighteen months on their compliance with the settlement.
“The Fair Housing Act ensures that persons with disabilities have an equal opportunity to use and enjoy housing,” said Acting Assistant Attorney General Vanita Gupta. “This includes providing reasonable and necessary accommodations to persons who need assistance animals to help them with their disabilities. The Justice Department will continue its vigorous enforcement of fair housing laws that protect the rights of persons with disabilities.”
“Landlords may not impose barriers that undermine the housing rights of people with disabilities,” said Acting United States Attorney Annette L. Hayes. “This settlement requires training for property managers, and clear statements in all advertisements about fair housing/non-discrimination policies to ensure this conduct will not be repeated.”
“Property owners have a legal obligation to permit reasonable accommodations where doing so allows persons with disabilities to fully enjoy their homes,” said HUD Assistant Secretary Gustavo Velasquez for Fair Housing and Equal Opportunity. “This consent decree reaffirms HUD’s commitment to working with the Department of Justice to take appropriate action anytime the Fair Housing Act is violated.”
Fighting illegal housing discrimination is a top priority of the Department of Justice. The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777 or through its website at http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp.
Longview, Washington, Landlords Agree to Settle Disability Discrimination LawsuitRead the Press Release
WASHINGTON – The Justice Department today announced that Longview, Washington, landlords Linda and Bert Barber, and their management agent, Lori Thompson, have entered into a consent decree and have agreed pay $25,000 to resolve claims that they discriminated on the basis of disability by refusing to grant a reasonable accommodation to waive a $1,000 pet deposit for a tenant with mental disabilities who needed a dog as an emotional support animal.
The consent decree resolves a lawsuit filed by the department on July 1, 2013, alleging that the defendants refused to grant a waiver of the pet deposit despite numerous attempts by the tenant to provide documentation of her disability and her need for the emotional support animal. The complaint also alleged that the defendants retaliated against the tenant after she filed a complaint with the U.S. Department of Housing and Urban Development (HUD). After HUD investigated the complaint, it issued a charge of discrimination and referred the matter to the Justice Department. The department’s complaint also alleged that defendants’ policies constituted a pattern or practice of discrimination in violation of the Fair Housing Act because they allowed reasonable accommodations for specially-trained service animals but precluded reasonable accommodations for emotional support animals. Defendants also refused to consider accommodation requests unless tenants had their physician complete forms that threatened penalty of perjury and threatened to require the physician to defend the information provided in court. Trial was set to begin on Nov. 19.
The settlement, which was approved today by Judge Benjamin H. Settle, requires the defendants to pay $20,000 to the HUD complainant and $5,000 to the United States. The settlement also requires that the defendants adopt a reasonable accommodation policy that complies with the Fair Housing Act, receive training on the requirements of the Fair Housing Act and report to the department for a period of eighteen months on their compliance with the settlement.
“The Fair Housing Act ensures that persons with disabilities have an equal opportunity to use and enjoy housing,” said Acting Assistant Attorney General Vanita Gupta. “This includes providing reasonable and necessary accommodations to persons who need assistance animals to help them with their disabilities. The Justice Department will continue its vigorous enforcement of fair housing laws that protect the rights of persons with disabilities.”
“Landlords may not impose barriers that undermine the housing rights of people with disabilities,” said Acting United States Attorney Annette L. Hayes. “This settlement requires training for property managers, and clear statements in all advertisements about fair housing/non-discrimination policies to ensure this conduct will not be repeated.”
“Property owners have a legal obligation to permit reasonable accommodations where doing so allows persons with disabilities to fully enjoy their homes,” said HUD Assistant Secretary Gustavo Velasquez for Fair Housing and Equal Opportunity. “This consent decree reaffirms HUD’s commitment to working with the Department of Justice to take appropriate action anytime the Fair Housing Act is violated.”
Fighting illegal housing discrimination is a top priority of the Department of Justice. The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777 or through its website at http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp.
Local Man Sentenced to over 21 Years on Drug and Weapons Charges Related to Woman's DeathRead the Press Release
St. Louis, MO – CHRISTOPHER CHANNEL was sentenced to 254 months in prison on charges of distribution of cocaine base and possession of a firearm in furtherance of a drug-trafficking crime, resulting in the killing of Carrie Henderson-Shaw.
According to court documents, in the early morning hours of January 3, 2010, Channel sold cocaine base to Henderson-Shaw at a local gas station located on South Broadway in the City of St. Louis, Missouri. Channel was in possession of a firearm during the drug transaction. After pulling off of the gas station lot, Henderson-Shaw suffered two gunshot wounds, ultimately resulting in her death, while her vehicle approached the entrance ramp to Interstate 55 from 7th Street. Channel acknowledged that Henderson-Shaw was shot dead as a result of the drug transaction.
Channel pled guilty in July 2014, to the above federal charges and appeared today for sentencing before United States District Court Judge Carol E. Jackson.
This case was investigated the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Louis Metropolitan Police Department.
Leading Edge Aviation Services Sentenced for Unlawful Handling of Hazardous Waste at Greenville, Mississippi, FacilityRead the Press Release
OXFORD, Miss.—Felicia C. Adams, United States Attorney for the Northern District of Mississippi, together with Maureen O’Mara, Special Agent in Charge of the Environmental Protection Agency’s criminal enforcement program in the Southeast, announces:
Leading Edge Aviation Services, Inc. (Leading Edge), a corporation headquartered in Costa Mesa, California, was sentenced today by United States District Judge Glen Davidson, in Aberdeen, Mississippi, following a guilty plea to one felony count of treating, storing, or disposing of hazardous waste without a permit at Leading Edge’s now shuttered Greenville, Mississippi, facility.
Leading Edge operated a commercial aircraft painting facility at Greenville’s Mid-Delta Regional Airport until mid-2013. The process of stripping paint from aircraft in preparation for repainting generated large volumes of hazardous wastes that Leading Edge was required to properly manage. However, an investigation by the government revealed that from April 23, 2010 to May 16, 2010, Leading Edge failed to properly manage its hazardous wastes when it stored them in an open pit without a permit.Judge Davidson sentenced Leading Edge to pay a criminal fine in the amount of $700,000. Leading Edge will pay a separate $275,000 civil penalty to the Mississippi Department of Environmental Quality and a $25,000 community service payment to the Association of State and Territorial Solid Waste Management Officials, a non-profit corporation. Leading Edge was also ordered to serve a term of probation of 12 months. The sentence further requires Leading Edge to complete cleanup of its Greenville facility, implement a corporate-wide hazardous waste training program, hire an Environmental, Health and Safety Manager, obtain ISO 14001 environmental management certification for its operating facilities, adopt a corporate code of ethics policy, and conduct ethics training for senior management.
The activity to which Leading Edge plead guilty occurred prior to the company’s purchase by a new ownership group in April 2012. The company, under the direction of its new ownership, cooperated fully with the EPA’s investigation of this matter.
Felicia C. Adams, U.S. Attorney for the Northern District of Mississippi, said, “The former owners of Leading Edge flouted the law by failing to properly manage its hazardous waste. Today’s sentence ensures that these illegal practices will not continue. The United States Attorney’s Office for the Northern District of Mississippi is committed to maintaining the health and safety of our citizens.”
“Our nation’s environmental laws help ensure that human health and safety is not endangered by companies looking to cut costs illegally,” said Maureen O’Mara, Special Agent in Charge of EPA’s criminal enforcement program in Mississippi. "The defendant’s actions callously placed the health of nearby residents at great risk. The paints and solvents used in this case were especially hazardous, requiring proper handling and disposal. This case sends a clear message that corporations that fail to properly manage hazardous wastes will be prosecuted and held accountable for their actions.”
This case was investigated by the Environmental Protection Agency, Criminal Investigation Division, and the Mississippi Department of Environmental Quality.
Lake City Photographer Sentenced to Three Years for Possessing Child PornographyRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Ronald Charles Waters (66, Lake City) to three years in federal prison for possessing child pornography. The court also ordered him to serve a seven-year term of supervision and to register as a sex offender following his release. Waters was arrested on November 20, 2013, in Lake City, and has been in custody since that time.
According to court documents, agents with the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) determined that several individuals, including the user of a particular e-mail address, had received an e-mail containing images of child pornography. Further investigation revealed that the e-mail account belonged to Waters. On November 20, 2013, HSI agents and other law enforcement officers executed a federal search warrant at his residence, where they seized an external media storage device that contained at least two videos and at least 16 images depicting minors engaged in sexually explicit conduct. Waters admitted that he knowingly possessed these videos and images.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Jacksonville Sheriff=s Office, and the Lake City Police Department. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, 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.
Kansas City Kan., Man Gets 10 Years in Federal Firearms CaseRead the Press Release
KANSAS CITY, KAN. – A Kansas City, Kan., man was sentenced Tuesday to 10 years in federal prison for selling stolen firearms, U.S. Attorney Barry Grissom said.
Joshua S. Bailes, 32, Kansas City, Kan., pleaded guilty to two counts of possession of stolen firearms. In his plea, he admitted that on Aug. 16, 2012, he and two co-defendants sold a total of four firearms to undercover agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives. On Aug. 21, 2012, Bailes and one co-defendant sold a total of 17 firearms to undercover ATF agents. It was determined later that the firearms were stolen. Among the firearms Bailes sold were handguns, rifles and shotguns. At the time of the crime, Bailes was prohibited from possessing firearms because he was a prior convicted felon.
Co-defendant Richard Fisher was sentenced to 15 years. Co-defendant Vincent Leuzinger was sentenced to 70 months.
Grissom commended the ATF and Assistant U.S. Attorney Terra Morehead for their work on the case.Irek Ilgiz Hamidullin Indicted for 2009 Attack on U.S. and Afghan Forces in Khost, AfghanistanRead the Press Release
Irek Ilgiz Hamidullin made his first appearance today in the U.S. District Court for the Eastern District of Virginia on federal terrorism offenses arising from his alleged participation in an attack on U.S. troops and Afghan Border Police in the Khost Province of Afghanistan in November 2009.
Hamidullin was indicted by a federal grand jury on twelve counts, including conspiring to provide and providing material support to terrorists; conspiring and attempting to destroy an aircraft of the armed forces of the United States; conspiring and attempting to murder a national of the United States; and other offenses.
The charges carry a potential maximum penalty of life imprisonment.
Hamidullin, a Russian national approximately 55 years of age, was taken into custody in November 2009 and held by the Department of Defense in Afghanistan until being turned over to the FBI on Nov. 3 and brought to the United States to face charges.
The defendant was indicted on Oct. 8, 2014, and the charging document was unsealed today.
Arraignment is set for Friday at 10:00 a.m. in front of U.S. District Judge Henry E. Hudson at the federal courthouse in Richmond, Virginia.
An indictment is merely a formal allegation that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
The case is being investigated by the FBI’s Washington Field Office with substantial assistance from various other government agencies. The case is being prosecuted by the U.S. Attorney’s Office for the Eastern District of Virginia and the Counterterrorism Section of the Justice Department’s National Security Division.
Irek Ilgiz Hamidullin Indicted for 2009 Attack on U.S. and Afghan Forces in Khost, AfghanistanRead the Press Release
WASHINGTON – Irek Ilgiz Hamidullin made his first appearance today in the U.S. District Court for the Eastern District of Virginia on federal terrorism offenses arising from his alleged participation in an attack on U.S. troops and Afghan Border Police in the Khost Province of Afghanistan in November 2009.
Hamidullin was indicted by a federal grand jury on twelve counts, including conspiring to provide and providing material support to terrorists; conspiring and attempting to destroy an aircraft of the armed forces of the United States; conspiring and attempting to murder a national of the United States; and other offenses.
The charges carry a potential maximum penalty of life imprisonment.
Hamidullin, a Russian national approximately 55 years of age, was taken into custody in November 2009 and held by the Department of Defense in Afghanistan until being turned over to the FBI on Nov. 3 and brought to the United States to face charges.
The defendant was indicted on Oct. 8, 2014, and the charging document was unsealed today.
Arraignment is set for Friday at 10:00 a.m. in front of U.S. District Judge Henry E. Hudson at the federal courthouse in Richmond, Virginia.
An indictment is merely a formal allegation that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
The case is being investigated by the FBI’s Washington Field Office with substantial assistance from various other government agencies. The case is being prosecuted by the U.S. Attorney’s Office for the Eastern District of Virginia and the Counterterrorism Section of the Justice Department’s National Security Division.Illegal Immigrant Sentenced to 8 Months in PrisonRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez today sentenced Amin Abel Gonell-Artiles, 34, to seven months in prison for illegal reentry into the United States, United States Attorney Ronald W. Sharpe announced.
On June 2, 2014, Gonell-Artiles, a national of the Dominican Republic, pleaded guilty to a onecount indictment charging him with illegal reentry into the United States. Court records show that Gonell-Artiles was removed from the United States on March 4, 2011 after his conviction for Social Security fraud. On February 26, 2014, Immigration and Customs Enforcement, Division of Enforcement and Removal Operations found Gonell-Artiles in the United States, and he did not have the required authorization to reenter the United States.
In addition to seven months in prison, Gonell-Artiles was sentenced to one month home confinement and ordered to pay a $100 special assessment. He was immediately remanded to the custody of the U.S. Marshals Service.
This case was investigated by Immigration and Customs Enforcement, Division of Enforcement and Removal Operations, and prosecuted by Assistant U.S. Attorney Everard E. Potter.
Illegal Alien Pleads Gulty to Passport Fraud, Aggravated Identity Theft, Alien Harboring, and Registering to Vote in A Federal ElectionRead the Press Release
An illegal alien who assumed the identity of a U.S. citizen, obtained a U.S. passport, and voted in the 2012 presidential election pled guilty today in federal court in Cedar Rapids.
Abel Hernandez-Labra, age 44, an illegal alien living in Hampton, Iowa, was convicted of one count of making false statements in a passport application, one count of aggravated identity theft, one count of making a false claim of U.S. citizenship to register to vote, and one count of harboring an illegal alien.
In a plea agreement, Hernandez-Labra admitted that he is a Mexican citizen who illegally entered the United States. Hernandez-Labra admitted he purchased a birth certificate and social security number of an American citizen born in Puerto Rico and assumed that identity. Falsely claiming to be a United States citizen, Hernandez-Labra used those documents to obtain Iowa driver’s licenses which he in turn, used to apply for and fraudulently obtain a U.S. passport in 2008 and to unlawfully register and vote in the 2012 federal election. Hernandez-Labra also admitted that, during 2014, he harbored and encouraged an illegal alien to reside unlawfully in the United States by providing work and a residence and by not reporting the alien to immigration authorities.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Hernandez-Labra remains in custody of the United States Marshal pending sentencing. Hernandez-Labra faces a mandatory sentence of two years’ imprisonment on the aggravated identity theft conviction, and a possible maximum sentence of ten years’ imprisonment on the passport fraud conviction, and five years’ imprisonment on both the illegal voting conviction and alien harboring conviction, along with a $1,000,000 fine, $400 in special assessments, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Daniel C. Tvedt and was investigated by agents from the U.S. Department of State, Diplomatic Security Service (DSS) Chicago Field Office; the Department of Homeland Security, Homeland Security Investigations; the Iowa Division of Investigations and Appeals; the Iowa Bureau of Investigation and Identity Protection; the Hampton Police Department; the Webster City Police Department; and the Hamilton County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-3036.
Gallup Man Pleads Guilty to Federal Involuntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Calvin Frank Joe, 41, an enrolled member of the Navajo Nation who resides in Gallup, N.M., pleaded guilty this morning to a federal involuntary manslaughter charge. Under the terms of his plea agreement, Joe will be sentenced to 42 months in federal prison followed by three years of supervised release.
Joe was arrested on Feb. 19, 2014, on an indictment charging him with second degree murder. The indictment alleged that Joe killed another Navajo man on the Navajo Indian Reservation in McKinley County, N.M., on April 18, 2013.
During today’s hearing, Joe entered a guilty plea to a felony information charging him with involuntary manslaughter. In his plea agreement, Joe admitted assaulting the victim by striking, beating and wounding him, and acknowledged that the assault resulted in the victim’s death.
Joe has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
The case was investigated by the Gallup office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Kyle T. Nayback is prosecuting the case.- Friendswood Man Heads to Prison for Two Child Pornography Charges
Former Oakland CPA Sentenced to 36 Months in Prison for Preparing False ReturnsRead the Press Release
OAKLAND – Jeffrey Deshon Applewhite, AKA Jeffrey Donald Mason, was sentenced today to 36 months in prison and ordered to pay $9,249 in restitution for assisting in the preparation of false federal income tax returns for clients in the San Francisco Bay Area, announced United States Attorney Melinda Haag, Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department's Tax Division, and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Thomas McMahon.
According to court documents, Applewhite owned and operated Applewhite and Co, CPA, along with Mason Financial Services, located in Inglewood, Calif. Applewhite also owned and operated his H&R Block franchise in Oakland, Calif. Although Applewhite mainly prepared tax returns from his Inglewood office, he came to the Oakland H&R Block location each year to meet with clients.
Following a five day trial, Applewhite was convicted on April 28, 2014, on 20 counts of aiding and assisting in the preparation and presentation of false and fraudulent tax returns. The returns reported false deductions and credits or false Schedule A expenses such as inflated charitable contributions.
On March 28, 2013, Applewhite, of Los Angeles was charged in a 34 count indictment with aiding and assisting in the preparation of false tax returns and identity fraud.
The sentence was handed down by the Honorable Jeffrey S. White, United States District Court Judge. Judge White also sentenced the defendant to a one-year period of supervised release. The defendant will begin serving his sentence on Jan. 12. 2015.
Assistant U.S. Attorney Cynthia Stier and Trial Attorney Sonia Owens of the Tax Division prosecuted the case. The prosecution is the result of an investigation by the IRS, Criminal Investigation.
(Applewhite indictment )
Former Lansing Man Sentenced to Nearly 20 Years in Prison for Attempting to Persuade A Minor to Engage in Sexual ConductRead the Press Release
CHICAGO ― A former south suburban Lansing man was sentenced to nearly 20 years in federal prison for attempting to persuade an individual he believed was a 14-year-old girl to engage in illegal sexual conduct. The defendant, MARTIN N. PAZDZUIRA, 47, formerly of Lansing, who has been in custody since he was arrested on federal charges in 2012, pleaded guilty in April of this year to one count of using the Internet to attempt to persuade an individual he believed was a minor to engage in illegal sexual conduct.
“Thank goodness it was law enforcement posing as ‘Emily,’ and not Emily,” U.S. District Judge Amy J. St. Eve said in imposing a sentence of 235 months, or 19 years, 7 months, yesterday in U.S. District Court. The judge also ordered Pazdzuira placed on court supervision for life following his release from prison.
Using the Internet to entice a minor to engage in illegal sexual conduct carries a mandatory minimum sentence of 10 years in prison and a maximum of life.
In pleading guilty, Pazdzuira admitted that he frequently used the Internet to chat with underage girls. In August 2012, he began chatting with “Emily,” who he believed was 14, and told “Emily” that he was 16 years’ old. In further chats, Pazdzuira made plans to meet “Emily” and take her to a hotel in Indiana to engage in illicit sexual conduct. He was arrested when he showed up to meet “Emily,” who, unbeknownst to him, was an undercover law enforcement officer posing as a minor girl.
Pazdzuira has two prior convictions for child sexual exploitation offenses. In 1995, he was convicted of aggravated criminal sexual abuse involving an 8-year-old child, and in 2005, he was convicted of possession of child pornography.
The sentence was announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The government was represented at sentencing by Assistant U.S. Attorney April Perry.
The investigation was conducted by the FBI’s Child Exploitation Task Force. The task force is part of a nationwide effort known as the Innocence Lost National Initiative targeting those involved in the commercial sexual exploitation of children in the United States. In Chicago, the CETF is comprised of FBI special agents and officers and investigators from the Chicago Police Department, the Cook County Sheriff's Office, and the Cook County State’s Attorney’s Office.
Former Fugitive Sentenced to Five Years in Prison for Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Scott Edward Cavell, 31, of Sacramento, was sentenced today by United States District Judge John A. Mendez to five years in prison and ordered to pay $7.4 million in restitution, for committing wire fraud, United States Attorney Benjamin B. Wagner announced.
Scott Cavell and co-defendant Christopher Warren defrauded Florida-based lender Taylor, Bean and Whitaker Mortgage Corporation of $7.4 million. As part of the mortgage fraud scheme, Warren and Cavell transferred the stolen funds out of their various bank accounts and converted the funds into more “travel friendly” gold and coins. Warren and Cavell then fled outside the United States with the money they wrongfully acquired from TB&W. Cavell fled to Ireland on a commercial flight. He was apprehended by Irish authorities and spent nine months in an Irish jail before voluntarily agreeing to return to the United States to face justice.
Warren fled first to Ireland and then on to Lebanon in a private charter aircraft. He was arrested attempting to reenter the United States under a fraudulently obtained passport with tens of thousands of dollars hidden in his cowboy boots. He pleaded guilty and on September 11, 2012, was sentenced to 14 years in prison
This case was the product of an investigation by the Internal Revenue Service-Criminal Investigation, the Federal Bureau of Investigation, and the Department of State Diplomatic Security Service. Assistant United States Attorneys Russell L. Carlberg and Paul A. Hemesath prosecuted the case.
Former Fort Bliss Soldier Sentenced to Federal Prison for Stealing Military EquipmentRead the Press Release
In El Paso on Friday, 31-year-old former U.S. Army Sergeant Dexroy Germaine Hamilton was sentenced to six months in federal prison followed by six months home confinement for the illegal importation of International Trafficking in Arms Regulations (ITAR) controlled military equipment valued at approximately $30,000 announced United States Attorney Robert Pitman and Homeland Security Investigations (HSI) Special Agent In Charge Dennis Ulrich.
In addition to the prison term, Senior United States District Judge David Briones ordered that Hamilton perform no less than 100 hours of community service and be placed under supervised release for a period of three years after completing his prison term.
On August 22, 2014, Hamilton pleaded guilty to one count of conspiracy to commit theft of government property and one count of smuggling goods into the United States. By pleading guilty, Hamilton admitted that while on deployment in Afghanistan between July 2013 and March 2014, he conspired with others to steal U.S. military munitions property including optical sights, night vision equipment and infrared lasers, then transport those items to the United States for resale.
On March 20, 2014, HSI agents executed a search warrant at the defendant’s residence in El Paso where they recovered five (5) AN/PVS-14 night vision monocular devices, fifty-two (52) PMAG 5.556 x 42 military magazines, and nineteen (19) M-16 magazines (government owned).
This investigation was conducted by Homeland Security Investigations. Assistant United States Attorney Greg McDonald prosecuted this case on behalf of the Government.
Final Member of Williston-based Meth Trafficking Organization "the Family” SentencedRead the Press Release
BISMARCK - U. S. Attorney Timothy Q. Purdon announced that on November 3, 2014, Brian Scott Dahl, 51, Williston, ND, was sentenced before U. S. District Judge Daniel L. Hovland to serve 17 years in prison for conspiracy to distribute a controlled substance and possession of a firearm in furtherance of a drug trafficking crime.
In Bismarck, United States Attorney Timothy Purdon said, “The sentencing of Brian “Kodiak” Dahl brings to a close the investigation and prosecution of the violent, Williston-based methamphetamine trafficking group known as “The Family.” Federal law enforcement and the U.S. Attorney’s Office, working with our state and local partners, have dismantled this drug trafficking organization and handed out stiff federal prison sentences to its members. The citizens of the Bakken oil boom region should take heart in knowing that federal law enforcement is fighting, every day, to preserve the North Dakota way of life in this time of dramatic changes.”
On August 13, 2012, at approximately 5:43 a.m., a local resident near Culbertson, Montana, called 911 reporting that a male was at his doorstep, bloody and badly injured. Emergency personnel responded and transported the man to a medical facility for treatment. He had multiple injuries to his body, including substantial bruising to his face and right eye, cuts to his face, substantial ligature marks on his neck, several broken ribs, and a broken collar bone.
The victim stated that on August 12, 2012, he had been assaulted by individuals in Williston, N.D. He stated he was beaten with brass knuckles, cut with a razor blade, strangled with a rope or string, and tasered. The victim identified his assailants as member of a drug trafficking group known as “The Family.” The victim was bound by his hands and ankles, thrown into the trunk of an automobile that had been lined with plastic, and driven from Williston, North Dakota, to a location in Montana, where he was beaten until he was unconscious. The victim was left for dead by his assailants, but after regaining consciousness, he was able to make his way to the Culbertson residence to seek help. The beating was motivated by the fact that members of “The Family” were concerned that the victim would provide information to law enforcement about “The Family’s” illegal drug trafficking activities.
During the investigation into the activities of “The Family,” it was discovered that Brian Dahl, a/k/a “Kodiak” was part of a conspiracy that possessed with intent to distribute in excess of 500 grams of methamphetamine in the Williston area. On January 29, 2013, law enforcement officials executed a search warrant at Dahl’s residence and seized 24 firearms despite the fact that Dahl, as a previously convicted felon, was prohibited from possessing firearms. Dahl was also implicated in the assault of Defendant Mills, who was at one time assaulted by other members of “The Family.” Dahl was involved in this incident and brandished a firearm during that assault.
The following defendants have been convicted and sentenced as a result of the investigation of this kidnapping and the drug trafficking activities of “The Family”:
• Jeffrey Jim “Pops” Butler, 47, convicted of kidnapping and conspiracy to distribute methamphetamine. On October 25, 2013, Butler was sentenced to serve a total of 20 years in federal prison.
• Nicholas James Gordon Woodford, 24, convicted of kidnapping and conspiracy to distribute methamphetamine. On October 21, 2013, Woodford was sentenced to serve a total of 15 years in federal prison.
• Tyler Michael White, 24, convicted of kidnapping and conspiracy to distribute methamphetamine. On October 25, 2013, White was sentenced to serve a total of 13 years and 9 months in federal prison.
• James Dean Odeneal, 24, convicted of kidnapping. On July 19, 2013, Odeneal was sentenced to serve 12 years in federal prison.
• Zachary Russell Mills, 24, convicted of kidnapping. On November 4, 2013, Mills was sentenced to serve 5 years in federal prison.
• Matthew Powers, 23, convicted of conspiracy to distribute a controlled substance. On December 20, 2013, Powers was sentenced to serve 5 years in federal prison.
In addition to the 17 year imprisonment term, Judge Hovland also ordered that Dahl serve 5 years of supervised release and was ordered to pay a $200 special assessment to the Crime Victims Fund.
The case was investigated by the Federal Bureau of Investigation, the North Dakota Bureau of Criminal Investigation, the Northwest Narcotics Task Force, the Williston Police Department and the Yellowstone County (MT) Sheriff’s Department.
Assistant U. S. Attorneys David D. Hagler and Rick L. Volk prosecuted the case.