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Thursday 18 September 2014
Shreveport Fire Department Dispatcher Pleads Guilty to Child Pornography Possession ChargeRead the Press Release
SHREVEPORT, La. – A dispatcher with the Shreveport Fire Department has pleaded guilty to possessing child pornography, U.S. Attorney Stephanie A. Finley announced today.
Shreveport Fire Department Dispatcher Stephen St. John, 46, of Shreveport, pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of possession of child pornography. According to evidence presented at the guilty plea, law enforcement agents discovered that St. John was a member of a secret internet file posting board that distributed child pornography. His home was searched on September 5, 2013 and several computers, external hard drives, memory cards, DVDs and diskettes were seized. An examination of the seized items revealed pubescent and prepubescent males engaged in explicit sexual activity including 157 images on diskettes.
St. John, who was taken into custody at the hearing, faces up to 10 years in prison, five years to life of supervised release, and a $250,000 fine. He also faces forfeiture of the devices used in the crime. A sentencing date of January 30, 2015 was set.The U.S. Postal Inspection Service, Homeland Security Investigations, U.S. Marshals Service and the Louisiana State Police investigated the case. Assistant U.S. Attorney Cytheria D. Jernigan is prosecuting the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ 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 exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be reported anonymously.
Seven Mitsubishi Electric Corp. and Hitachi Automotive Supply Ltd. Executives Indicted for Role in Conspiracy to Fix PricesRead the Press Release
A federal grand jury in Detroit returned two separate indictments against seven executives from two Japanese manufacturers of automotive parts for their participation in a conspiracy to fix prices of certain automotive parts, the Department of Justice announced today.
A three-count indictment was filed today in the U.S. District Court for the Eastern District of Michigan. Count one charges Atsushi Ueda, Minoru Kurisaki, and Hideyuki Saito of Mitsubishi Electric Corp. (MELCO) with conspiring to fix the prices of certain automotive products, including starter motors, alternators and ignition coils, sold to Ford Motor Company, General Motors LLC, Chrysler Group LLC, Fuji Heavy Industries Ltd., Nissan Motor Company Ltd., and Honda Motor Company Ltd. in the United States and elsewhere.
Count two charges Kurisaki and Saito with knowingly conspiring to obstruct justice by destroying documents and corruptly persuading, and attempting to persuade others, to destroy documents.
Count three charges Saito with knowingly and corruptly persuading, and attempting to persuade, executives to destroy documents and delete electronic data that may contain evidence of antitrust crimes in the United States and elsewhere.
Ueda and Kurisaki served as President and General Manager, respectively, in the Automotive Equipment Group. They are no longer employed by MELCO. Saito currently serves as a high-level manager within the Automotive Equipment Group at MELCO.
A one-count indictment, also filed today in the U.S. District Court for the Eastern District of Michigan, charges Takashi Toyokuni, Ken Funasaki, Kazunobu Tsunekawa and Tomiya Itakura of Hitachi Automotive Systems Ltd. with conspiring to fix the prices of various automotive parts, including starter motors, alternators, air flow meters, valve timing control devices, fuel injection systems, electronic throttle bodies, ignition coils and inverters and/or motor generators sold to various automobile manufacturers such as, Ford Motor Co., General Motors LLC, Nissan Motor Co. Ltd., Toyota Motor Corp., and Honda Motor Co. Ltd., in the United States and elsewhere.
Toyokuni, Funasaki, Tsunekawa, and Itakura all served as high-level managers in the Business Planning Department at Hitachi Automotive during the charged conspiracy and currently serve in various senior management positions at the company.
“Protecting American consumers from anticompetitive practices is our top priority,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “The Antitrust Division will continue to pursue the auto parts makers and executives who engaged in this blatant and harmful criminal scheme.”
Both indictments allege that the executives indicted today participated directly in the conspiratorial conduct, and directed, authorized, and consented to their subordinates’ participation. The executives are charged with participating in a conspiracy that existed from at least as early as January 2000 and continued until about February 2010. Among other things, the executives and their subordinates, according to the indictment, participated in meetings with co-conspirators and reached collusive agreements to rig bids, allocate the supply and fix the prices of certain automotive parts sold to automobile manufacturers.
MELCO is a corporation headquartered in Tokyo, Japan. MELCO pleaded guilty on Nov. 6, 2013, for its involvement in this conspiracy, and was sentenced to pay a criminal fine of $190 million.
Hitachi Automotive is a corporation headquartered in Tokyo, Japan. Hitachi Automotive pleaded guilty on Nov. 6, 2013, for its involvement in this conspiracy, and was sentenced to pay a criminal fine of $195 million.
Including Toyokuni, Funasaki, Tsunekawa, Itakura, Ueda, Kurisaki and Saito, 43 individuals have been charged in the government’s ongoing investigation into price fixing and bid rigging in the auto parts industry. Twenty-six of these individuals have pleaded guilty and have been sentenced to serve prison terms ranging from a year and one day to two years. Additionally, 28 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.4 billion in fines.
The seven defendants are charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine. The maximum penalty for obstruction of justice is 20 years in prison and a $250,000 criminal fine for individuals.
Today’s indictment is the result of an ongoing federal antitrust investigation into price fixing, bid rigging, and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charge was brought by the Antitrust Division’s Washington Criminal I Section and the FBI’s Detroit Field Office, with the assistance of the FBI headquarters’ International Corruption Unit. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Detroit Field Office at 313-965-2323.
Sentencings for September 16-17, 2014Read the Press Release
Julio Ceasar Torres-Torres, 29, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on September 17, 2014, for illegal re-entry of a previously deported alien into the United States. Torres-Torres was arrested in Cody, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Kendra Iverson, 43, of Phoenix, Arizona, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on September 16, 2014, for conspiracy to possess with intent to distribute, and distribution of 3.4 kilograms of methamphetamine. Iverson was arrested in Phoenix, Arizona. She received 87 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and a $900.00 fine. This case was investigated by the U.S. Drug Enforcement Administration, the Internal Revenue Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Selim Zherka, Westchester Businessman, Indicted by White Plains Federal Grand Jury for Submitting False Loan Applications, Tax Fraud, Wire Fraud, and Witness TamperingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Shantelle P. Kitchen, the Acting Internal Revenue Service Special Agent in Charge of the New York Office – Criminal Investigation (“IRS”), George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Christy Romero, the Special Inspector General of the Troubled Asset Relief Program (“SIGTARP”), announced today that Westchester businessman SELIM ZHERKA, 46, of Somers, New York, was indicted by a federal grand jury in White Plains for submitting multiple false loan applications to banks, tax fraud, wire fraud, and witness tampering. ZHERKA was arrested today by agents of the FBI and is expected to be arraigned in federal court in White Plains this afternoon.
U.S. Attorney Bharara stated: “Selim Zherka, while running his various businesses, allegedly engaged in a string of crimes. Zherka, the owner of commercial real estate and other businesses, stands accused of filing multiple false bank loan applications, engaging in tax fraud, and witness tampering. He is also charged with defrauding a businessman of his right to collect a court judgment against Zherka for assault and breach of contract.”
Acting IRS Special Agent in Charge Kitchen stated: “The Internal Revenue Service is committed to ensuring that everyone pays their fair share of taxes. The public should not have to pick up the tab for those who willfully choose to not file correct and accurate returns. IRS-Criminal Investigation investigates individuals who allegedly corruptly violate the tax laws to further their business and personal interests, at the expense of other businesses and individual taxpayers who play by the rules.”
Assistant FBI Director Venizelos stated: “As alleged, Zherka’s entrepreneurship got a little too creative when he began fabricating loan applications, among many other things, and Zherka’s web of deception knew few bounds. Today he finds himself under arrest and on the wrong side of the law.”
Special Inspector General of TARP Christy Romero stated: “Following an extensive criminal investigation by SIGTARP and our law enforcement partners, this morning federal agents apprehended Selim Zherka without incident in Westchester County, New York. Zherka is charged with falsifying information on commercial loan applications submitted to North Fork Bank - later purchased by TARP recipient Capital One - to obtain more than $36.5 million in loans from the bank.”
According to the Indictment, from November 2005 through 2008, ZHERKA obtained a total of over $146 million in loans from three banks – North Fork Bank (now Capital One), Sovereign Bank (now Santander), and Signature Bank – for the purchase and/or refinancing of apartment house complexes in New England, Tennessee, New Jersey, and New York by lying about the purchase prices of the real estate he was acquiring, the amount of the down payments he was making toward the purchases in question, his assets, his income, his tax returns, and the nature and circumstances of a 2000 court judgment against him for assault and breach of contract (which, to date, he has not paid).
Additionally, the Indictment charges ZHERKA with engaging in a decade-long tax fraud scheme. The Indictment alleges that ZHERKA repeatedly submitted fraudulent tax returns to the IRS that overstated depreciation expenses and understated his capital gains on tax returns for the real estate holding companies in which he was a partner and which, in turn, owned the above apartment house complexes, thereby reducing their tax liabilities. The Indictment also charges that ZHERKA obstructed the Internal Revenue Service by, among other means, failing to file personal tax returns for over a decade.
The Indictment also charges that ZHERKA schemed to defraud the judgment creditor in connection with the above-referenced 2000 case of that individual’s right to receive payment of the judgment. ZHERKA had been found liable by a New York State Supreme Court jury in Manhattan for assaulting that individual and for breaching a contract with him.
Finally, the Indictment charges ZHERKA with tampering with witnesses in this investigation.
If convicted on the charges in the Indictment, ZHERKA faces the following maximum penalties: for each of the 11 counts of submitting a false loan application with which he is charged, 30 years in prison and a $1 million fine or twice the gross gain or loss resulting from the crime; for the count of wire fraud and the count of witness tampering, 20 years in prison and a $250,000 fine or twice the gross gain or loss resulting from the crime on each count; for the count of conspiracy to obstruct the IRS and violate tax laws, 5 years in prison and a $250,000 fine or twice the gain or loss resulting from the crime; and for each of the 10 counts of making/subscribing to false returns, the 10 counts of aiding/assisting in the preparation of false tax returns, and the count of attempting to interfere with the administration Internal Revenue laws, 3 years in prison and a $250,000 fine or twice the gross gain or loss resulting from the crime. Additionally, he faces potential criminal forfeitures totaling $146 million, restitution, and the costs of prosecution. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant and any forfeiture would be determined by the Court.
Mr. Bharara praised the work of the IRS, the FBI, and the Special Inspector General for the Troubled Asset Relief Program in this investigation.
This case is being handled out of the White Plains Division. Assistant United States Attorneys Elliott B. Jacobson and Perry A. Carbone are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
US v. Zherka memo of law (9-18-14)
Selim Zherka.S2Saint Lawrence County Man and Woman Indicted on Federal Child Sexual Exploitation and Child Pornography ChargesRead the Press Release
Charges include sexual exploitation of three children
SYRACUSE, NEW YORK – Hermon, NY residents STEPHEN M. HOWELLS, II, age 39, and NICOLE F. VAISEY, age 25, were formally charged today in federal court in Syracuse on multiple counts including conspiracy to sexually exploit children and sexual exploitation of children according to United States Attorney Richard S. Hartunian and Special Agent in Charge, Andrew W. Vale of the Federal Bureau of Investigation, Albany Division.
The five count indictment returned by a federal Grand Jury charged Howells and Vaisey with the following crimes: Count 1 - Conspiracy to Sexually Exploit Children involving two minor female victims (V-1 and V-2) and Count 2 - Sexual Exploitation of a Child (V-1). Counts 3 and 4 charge Howells and Vaisey, individually, with Sexual Exploitation of a third female child (V-3). Howells was also charged in Count 5 with Possession of Child Pornography.1
If found guilty on Counts 1 – 4, each defendant faces a statutory minimum of at least fifteen years imprisonment and a maximum term of thirty years imprisonment. On Count 5, Howells faces a maximum term of twenty years imprisonment. Both defendants may be fined up to $250,000 on each count of conviction. Upon release from prison, they would be placed on Supervised Release for a mandatory minimum at least five years and up to life. They would also be required to register as sex offenders.
United States Attorney Hartunian said, “This indictment charges Howells and Vaisey with enticing and coercing children to engage in sexual conduct and making a video recording of it. The Department of Justice is committed to the safety and well-being of every child and has placed a high priority on combating sexual exploitation of minors. We will continue to work closely with our state and local partners to identify and prosecute those who prey on our children.”
Anyone having information regarding this case may contact the Federal Bureau of Investigation at 1-800-CALL-FBI.
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1The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty.
Raymondville Man Sentenced to 15 Years for Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Raymondville, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Lloyd W. Reeves, 51, of Raymondville, was sentenced by U.S. District Judge Gary A. Fenner to 15 years in federal prison without parole. Reeves was sentenced as an armed career offender due to his prior felony convictions.
On Feb. 3, 2014, Reeves pleaded guilty to being a felon in possession of a firearm. Reeves admitted that he was in possession of a firearm on Sept. 11, 2012, when he pawned a Remington 12-gauge shotgun. When Reeves attempted to redeem the pawn on the firearm, an NICS check revealed that he had prior felony convictions, and the owner of the pawn shop declined to return the firearm.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Reeves has three prior felony convictions for burglary, two prior felony convictions for driving while intoxicated, two prior felony convictions for stealing and prior felony convictions for unlawful use of a weapon, possession of a controlled substance and forgery.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Texas County, Mo., Sheriff’s Department, the Missouri State Highway Patrol, the South Central Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives.Quincy Woman Sentenced for Mailing and Tweeting Bomb, Anthrax and Death ThreatsRead the Press Release
Boston – A Quincy woman was sentenced yesterday for sending multiple bomb, anthrax and other death threats through the U.S. mail, e-mail and Twitter.
Linda Louise Culkin, 55, was sentenced by U.S. District Court Judge George A. O’Toole, Jr. to 51 months in prison, three years of supervised release and ordered to pay over $125,000 in restitution. She was arrested in January 2012 and has been detained since. In November 2013, Culkin pleaded guilty to three counts of sending threats through the U.S. mail, two counts of sending threats over the Internet, five counts of sending threats and false information regarding explosives, and four counts of sending threats about biological agents such as anthrax.
From 2009 through the end of 2011, Culkin sent bomb, anthrax, and other death threats to several people and their workplaces in the United States and abroad. Investigators numbered the threats into the dozens; one victim estimated over a thousand. One of Culkin’s hoax bomb threats caused police in a foreign city, near one of the biggest train stations in the country, to evacuate a building and close off a neighborhood to keep out pedestrian and vehicle traffic for two hours. One of her hoax anthrax threats included a letter that, when opened, had white powder that flew into the air and caused people nearby to be quarantined and fear for their health until the threat was determined to be a hoax. Two victims spent thousands of dollars on added security to protect themselves.
Culkin started sending threats primarily through the mail. After being questioned by law enforcement officers about the mailed threats, Culkin started sending threats primarily through the Internet. Culkin made use of the Internet’s relative anonymity by never sending the e-mail and Twitter threats through a home computer that might be traced back to her. Instead, Culkin used computers at her workplaces, the apartment of a close friend, and at public libraries where she was recorded by surveillance video while on a computer making a threat.
Shortly after Culkin was recorded on video, a search of her apartment turned up numerous articles related to the victims and the threats, some of which items were hidden inside chairs and couches, under rugs, and inside her cat’s play structure.
United States Attorney Carmen M. Ortiz and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The case was prosecuted by Assistant United States Attorney Scott L. Garland, who was with Ortiz’s Cybercrime Unit during the investigation and is now with the Anti-Terrorism and National Security Unit.
Owner of Mussari Motors, Inc. Pleads Guilty to Conspiracy to Evade Reporting Requirements After Receiving $719,000 in Cash from Drug TraffickerRead the Press Release
SAN DIEGO – John Frank Mussari Jr, owner of Mussari Motors Inc., a luxury car dealership in San Diego, admitted in federal court today that he conspired with a drug trafficker to evade laws requiring disclosure of cash transactions exceeding $10,000.
According to his plea agreement, Mussari admitted that he failed to report receiving $719,000 in cash from the drug trafficker, who purchased several high-end vehicles including a Ferrari and Porsche during a four-month period.
Under federal law, each person engaged in an automobile dealership, who in the course of that business, receives more than $10,000 in cash in one transaction or in two or more related transactions, must file “Report of Cash Payments Over $10,000 in Trade or Business” with the Financial Crimes Enforcement Network (FINCEN) within 15 days. Mussari admitted that he and the trafficker, who was identified in the plea agreement only as J.B., intentionally and willfully conspired with each other to avoid filing any of the required forms.
Drug traffickers often use this method to launder drug proceeds.
During his guilty plea today, Mussari admitted that he received $132,000 in cash for a Ferrari, $115,000 in cash for a Lamborghini, $147,000 in cash for a Porsche, and $205,000 for another Lamborghini. Mussari also admitted that he received $80,000, $60,000, and $31,000 in cash from the drug trafficker.
According to court documents, Mussari was initially detained attempting to leave in a Lamborghini at the time federal and state agents searched the residence of the drug trafficker’s home in Fallbrook, California. Agents found about $205,000 cash in Mussari’s Lamborghini. The money was forfeited to the United States.
Mussari is scheduled to be sentenced on December 5, 2014 at 8:30 a.m. before U.S. District Judge Gonzalo P. Curiel.
DEFENDANT Case Number: 13cr4072 John Frank Mussari, Jr. Age: 48 San Diego, California CHARGESConspiracy to Evade Reporting Requirements Received in Business
INVESTIGATING AGENCY
Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison and $250,000 fineInternal Revenue Service
Drug Enforcement Administration*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Orange County Man Guilty of Child Pornography ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 32-year-old Orange, Texas man has pleaded guilty to child pornography charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jason Ryan Bickham pleaded guilty to possession of child pornography on Sep. 17, 2014 before U.S. Magistrate Judge Zack Hawthorn.According to information presented in court, law enforcement authorities were alerted by a citizen that Bickham had images containing child pornography on his cellular phone. Bickham provided officers consent to search the phone. A forensic analysis of Bickham’s phone revealed multiple images and videos of child pornography. Bickham was indicted by a federal grand jury on June 4, 2014.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Bickham faces up to 20 years in federal prison. A sentencing date has not been set.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Orange Police Department and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Randall LO. Fluke.Northwest Omaha Man Sentenced for Receiving Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Jeffrey R. Rongish, age 31of Omaha, was sentenced in federal court in Omaha, Nebraska for receiving and distributing child pornography. The Honorable Lyle E. Strom, Senior United States District Court Judge sentenced Rongish to a 78 month term of imprisonment. There is no parole in the federal prison system. After his release from prison Rongish will begin a twelve year term of supervised release and be required to register as a sex offender.
On October 28, 2013, a Douglas County Sheriff’s deputy using an undercover computer detected a computer at Rongish’s northwest Omaha residence offering to share child pornography. A search warrant was executed by members of the FBI Omaha Cyber Crimes Task Force on January 24, 2014.
Rongish admitted downloading child pornography for over 15 years. He provided agents with his encryption password. Agents recovered 4,500 images of child pornography. The images included children ranging from infants to teens engaged in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This matter was investigated by the Omaha FBI's Cyber Crime Task Force (CCTF), of which the Douglas County Sheriff’s Office is a partner. The Omaha CCTF is a multi-jurisdictional task force consisting of eleven federal, state and local law enforcement agencies from Nebraska and Iowa. The mission of the Omaha CCTF is to investigate and apprehend high technology criminals and to protect our communities by preventing high technology crime and national security threats involving computers and computer networks. The Omaha CCTF was established on the premise that the capabilities of law enforcement agencies to investigate computer and high technology related crimes are enhanced in a task force setting involving the sharing of resources and expertise.North Miami Beach Resident Sentenced in Identity Theft Tax Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), and J. Scott Dennis, Chief, North Miami Beach Police Department, announce that Dines Blanc, 24, of North Miami Beach, was sentenced before U.S. District Judge K. Michael Moore to 42 months in prison, followed by one year of supervised release.
Blanc previously pled guilty to one count of possession of 15 or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, law enforcement executed a search warrant at the residence where Blanc lived and found handwritten lists of names, dates of birth, and social security numbers of other individuals; applications to a staffing agency, including W-4s, 1-9, and resumes; medical information sheets; and approximately 25 debit cards. In total, Blanc was in possession of 611 unique pieces of personal identifying information (PII) of others. Fraudulent tax returns were filed on behalf of at least 16 individuals whose PII was found in Blanc’s residence. The loss amount is $305,500.
Mr. Ferrer commended the investigative efforts of IRS-CI, the USSS, and the North Miami Beach Police Department. This case is being prosecuted by Assistant U.S. Attorney Jamie Galvin.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
New Orleans Men Sentenced for Drug ConspiracyRead the Press Release
U.S. Attorney Kenneth Politc announced that JERRY SPENCER, JR., 29, MITCHELL LEE, 28, and TERRANCE TIMMONS, 33, all residents of New Orleans, were sentenced today for their roles in a conspiracy to distribute and possess with the intent to distribute a quantity of heroin and a quantity of cocaine base. U.S. District Judge Carl J. Barbier sentenced SPENCER, JR., LEE and TIMMONS to a term of imprisonment of 72 months, 78 months, and 60 months, respectively, followed by three years of supervised release for each. Another defendant, TROY ADAM, 50, also a resident of New Orleans, was sentenced to a three-year term of probation for his role in distributing a quantity of heroin. Defendant DEVIN TIMMONS is scheduled to be sentenced on October 2, 2014.
On May 15, 2014, SPENCER, LEE, TIMMONS, and ADAM pled guilty to various counts contained in the indictment which charged them with distribution and possession with intent to distribute heroin and cocaine base.
According to court documents, after more than a yearlong investigation and numerous controlled purchases of narcotics by various federal and state law enforcement agencies, agents of the Federal Bureau of Investigations (“FBI”) arrested SPENCER, JR., LEE, DEVIN TIMMONS, TERRANCE TIMMONS, and ADAM on charges of conspiring to violate the Federal Controlled Substances Act. The defendants’ drug trafficking activity occurred in an area of New Orleans referred to as the “horseshoe” or the “shoe” that includes McCoy Street, Across Street, and Darby Street, which are roadways situated in the shape of a horseshoe, off of Old Gentilly Road in eastern New Orleans.
This case was investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, and the New Orleans Police Department. It was prosecuted by Assistant United States Attorney Theodore Carter.
Native of Dominican Republic Charged with Illegal ReentryRead the Press Release
Fabio Rondon-Jose, a/k/a “Cesar Rodriguez,” a/k/a “Noel Rodriguez Mendoza,” 46, of Philadelphia, PA, was charged today by indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about August 21, 2014, Rondon-Jose, an alien, and native and citizen of the Dominican Republic, was found in the United States after having been deported from the United States on or about November 30, 2005.
If convicted the defendant faces a maximum possible sentence of twenty years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Matthew J.D. Hogan.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Mother and Daughter Plead Guilty in Student Aid Fraud InvestigationRead the Press Release
RICHMOND, Va. – Donnica Crossland, of Washington, D.C., pleaded guilty today to making false statements to federal agents in connection with an investigation of student aid fraud. Her daughter, Jamanda Crossland, pleaded guilty today to making false statements on student financial aid applications.
Dana J. Boente, United States Attorney for the Eastern District of Virginia;and Mark A. Smith, Special Agent in Charge of the Technology Crimes Division of the Department of Education Inspector General’s Office, made the announcement after the pleas were accepted by United States District Judge Henry Hudson.Donnica and Jamanda Crossland each face a maximum penalty of 5 years in prison, a fine of up to $250,000, and full restitution when they are each sentenced on December 12, 2014, by United States District Judge Henry Hudson.
In separate statements of fact filed by each defendant with their written plea agreements, Donnica and Jamanda Crossland admitted that Jamanda Crossland attended Virginia Commonwealth University (VCU), in Richmond, Virginia, as a student from 2009 to 2013. Between 2009 and 2013, Jamanda Crossland was awarded $69,788 in U.S. Federal Education grants or loans, and $43,400 in tuition grants from the D.C. Office of the State Superintendent of Education, Government of the District of Columbia (“OSSE”) that were used to pay costs associated with attending VCU. For each year Jamanda Crossland attended VCU between 2008 and 2013, she filed a Free Application for Federal Student Aid (FAFSA) with the U.S. Department of Education and reported her mother Donnica Crossland had no income. During that same period, Jamanda Crossland filed applications for education grants with the D.C. OSSE, and in those applications stated her mother Donnica Crossland was not employed and received no income. Jamanda Crossland also submitted a Federal Student Aid Verification worksheet containing false information to VCU and provided additional false documents in support of the worksheet, including: fraudulent copies of Form 1040 for her father, a forged letter from her father regarding his marital status, and a fake utility bill with a false address for her mother.
To facilitate her daughter Jamanda Crossland obtaining the OSSE grants for use at VCU, and another daughter obtaining the OSSE grants for use at a North Carolina college, on five separate occasions Donnica Crossland affirmed and signed these OSSE applications falsely stating that she was not employed and received no income, which were then submitted to the OSSE. In fact, for each year during the period from December 2006 through December 2012, Donnica Crossland had a substantial income from employment at the U.S. Department of Transportation (“USDOT”), earning a total of $521,819 from her employment at the USDOT for that time period.
In 2013, the U.S. Department of Education’s Office of the Inspector General commenced an investigation of the Crossland aid applications and supporting documents. On July 30, 2013, Department of Education Inspector General agents interviewed Donnica Crossland. During the interview, attempting to conceal her involvement, Donnica Crossland knowingly and falsely stated that she had filled out some of Jamanda Crossland’s paperwork during the summer prior to her first year of college, but she had nothing to do with their financial aid applications thereafter.
On November 7, 2013, Department of Education Inspector General agents again interviewed Donnica Crossland. During the interview, attempting to conceal her involvement, Donnica Crossland knowingly and falsely stated that she had no knowledge of any of the financial assistance applications submitted by Jasmine Crossland and Jamanda Crossland after 2007.For restitution and sentencing purposes, Donnica and Jamanda Crossland stipulated that the loss amount resulting from their false statements and filings is $78,688.00.
This case was investigated by the U.S. Department of Education’s Office of the Inspector General. Assistant U.S. Attorney S. David Schiller is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 3:14-cr-115 and 116.Montana U.S. Attorney Tapped to Advise Attorney GeneralRead the Press Release
Attorney General Eric Holder has selected Mike Cotter, Montana's United States Attorney, to serve on the Attorney General's Advisory Committee (AGAC). The Committee consists of 20 of the 93 United States Attorneys selected by the Attorney General to represent the interests of their judicial district. The Advisory Committee gives United States Attorneys a voice in Department policies and advises the Attorney General of the United States.
In advising the Attorney General, the Committee conducts studies and makes recommendations to improve management of United States Attorney operations and the relationship between the Department and its federal prosecutors and civil lawyers. It also helps formulate new programs for improvement of the criminal justice system and the delivery of legal services at all levels.
The Attorney General selected Cotter and U.S. Attorney Barry Grissom of Kansas to fill openings on the AGAC. "It's a pleasure to welcome Mike Cotter and Barry Grissom as the two newest members of the Attorney General's Advisory Committee, a group of U.S. Attorneys with whom I regularly consult on some of the most significant law enforcement and public safety issues facing our nation," said Attorney General Holder. "I'm grateful for their service and leadership. I look forward to working closely with the entire AGAC as we all work together to protect and ensure justice for the American people."
It is a privilege and an honor to serve on the AGAC, but more than that it is a great opportunity for Montana and her law enforcement community," said Montana U.S. Attorney Mike Cotter, "The issues we confront in the Rocky Mountain West-such as federal land and resource management, service to Indian communities, and addressing public safety concerns related to the oil boom in Northeast Montana-are unique. I am thankful for the opportunity to bring Montana's concerns to the AGAC."
Middlesex County, N.J., Couple Charged with Running Prostitution Business Which Employed Undocumented AliensRead the Press Release
NEWARK, N.J. - A New Brunswick, New Jersey, couple was arrested today and charged with harboring undocumented aliens to serve as prostitutes in a string of at least eight brothels scattered across the state, U.S. Attorney Paul J. Fishman announced.
Juan Fredy Hernandez-Zozaya, 36, and his wife, Elizabeth Rojas Rojas, 33, are charged by complaint with one count of harboring aliens for the purpose of prostitution, one count of harboring aliens for the purpose of financial gain and conspiracy to commit those offenses. The defendants are scheduled to make their initial court appearances this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal Court.
According to the documents filed in this case and statements made in court:
Since at least 2012, law enforcement has been investigating Hernandez-Zozaya and Rojas in connection with a chain of brothels in towns including New Brunswick, Trenton, Orange, Lakewood, Asbury Park and Bridgeton, New Jersey. The brothels were typically located in private residences, and undocumented aliens were employed as prostitutes.
Hernandez-Zozaya and Rojas were allegedly the leaders of the organization. Hernandez-Zozaya hired, fired and oversaw individuals who managed the daily activities at the brothels. Rojas organized, directed and scheduled prostitutes. The couple also employed and relied on a string of conspirators to help manage the brothels. The investigation revealed that the prostitutes sometimes traveled across state lines to work and that Hernandez-Zozaya and Rojas both collected the proceeds from the prostitution activities.
Both of the harboring counts with which the defendants are charged carry a maximum penalty of 10 years in prison. The conspiracy count carries a maximum penalty of five years in prison.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Sharon Ashe of the office’s Narcotics Unit in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
14-330Hernandez-Zozaya, Juan Fredy and Rojas, Elizabeth Rojas Complaint
Mexican National Sentenced for Drug Trafficking and Possession of A Firearm in Furtherance of A Drug Trafficking CrimeRead the Press Release
BOISE –Jose Luis Rodriguez-Nava, 26, a Mexican National, was sentenced to 84 months in prison for possession of methamphetamine with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Rodriguez-Nava to serve three years of supervised release following his release from prison. It is anticipated that he will be deported following his release from prison.
According to court documents, a vehicle in which Rodriguez-Nava was a passenger was stopped for a traffic violation in Twin Falls, Idaho. He was found to be in possession of approximately 48 grams of methamphetamine and a loaded handgun. Rodriquez-Nava admitted ownership of the firearm and admitted to selling methamphetamine. He was determined to be an illegal alien living unlawfully in the Magic Valley.
The case was investigated by Twin Falls County Sheriff’s Office, as well as federal agents of the Bureau of Alcohol, Tobacco and Firearms and Immigration and Customs Enforcement.
Memphis Truck Driver Sentenced for Stealing Cargo in West PlainsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Memphis, Tenn., truck driver was sentenced in federal court today for his role in a cargo theft scheme that included a theft in West Plains, Mo.
Michael Lee Sherley, 49, of Memphis, was sentenced by U.S. District Judge Gary A. Fenner to four years and six months in federal prison without parole. The sentence includes a 33-month term for his conviction for theft of an interstate shipment, plus a 21-month term for the revocation of his supervised release in a prior unrelated federal conviction in the Western District of Tennessee.
Sherley, who pleaded guilty on March 19, 2014, was employed by Nu World Trucking, LLC, a Memphis company in the business of transporting goods in interstate commerce, from July 2012 until his arrest on May 12, 2013. Sherley’s uncle and co-defendant Earl Stanley Nunn, 59, also of Memphis, was the owner of Nu World Trucking.
Nunn and Sherley were part of a cargo theft ring that used the resources of Nu World Trucking to steal cargo in various states. They did so by “bob-tailing” (meaning they traveled in a road tractor truck, without a semi-trailer attached) through truck stops and service stations located on or near interstate highways, looking for semi-trailers that had been left parked and unattended, and were not coupled to road tractors. When they located a semi-trailer that appeared to be unattended, they would steal the semi-trailer and the goods it contained by coupling their road tractor truck to it and driving off. After having stolen a semi-trailer and its contents, they usually transported the stolen goods to the Chicago, Ill., and Detroit, Mich., areas to be “fenced” or sold.
Nunn, the leader of the conspiracy, pleaded guilty on July 14, 2014, and awaits sentencing.
The government believes that co-conspirators committed thefts in various states, including Arkansas, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Michigan, Missouri, Nebraska, Ohio, Tennessee, Texas, and Virginia. Conspirators also included Nunn’s son, Roderick Nunn (who pleaded guilty in a related case in the Western District of Michigan), and others.
The specific charge to which both Nunn and Sherley pleaded guilty involves a theft that occurred on May 11, 2013, at the Snappy Mart Truck Stop in West Plains. Nunn and Sherley stole a 2000 Wabash trailer (valued at $7,500), which contained a load of Green Giant canned corn (valued at $73,008). The trailer, owned by Bryant Freight, LLC, was in transit from Minnesota to the Arkansas Food Bank in Little Rock, Ark. Nunn and Sherley admitted that they traveled through Missouri and Indiana with the stolen cargo before being apprehended in Michigan.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the FBI’s Memphis Cargo Theft Task Force, the U.S. Marshal’s Service, the West Plains, Mo., Police Department and the Michigan State Highway Patrol.Manhattan U.S. Attorney Settles Civil Fraud Claims Against Exporter for Fraudulently Obtaining A Loan Guaranteed by the Export-Import BankRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Michael McCarthy, the Acting Inspector General for the Export-Import Bank of the United States (“EX-IM”), and Fred Hochberg, the Chairman for EX-IM, announced today that the United States filed a civil fraud lawsuit in Manhattan federal court against HASAN BESNELI, a Turkish business agent, and SABA, INC. (“SABA”), an exporter based in Memphis, for fraudulently obtaining a loan for a construction project in Turkey from Deutsche Bank that was guaranteed by EX-IM. The United States’ complaint alleges that, in applying for the loan and the loan guarantee, BESNELI and SABA misrepresented key aspects of the transaction, including how much of the loan proceeds would be spent on “local costs” in Turkey rather than on U.S.-made goods, and whether the borrower, a Turkish non-profit organization, would furnish a 15% down payment. The lawsuit seeks civil penalties under the Financial Institutions Reform, Recovery, and Enforcement Act (“FIRREA”) and damages and penalties under the False Claims Act.
Simultaneous with the filing of the lawsuit, the United States settled the claims against SABA pursuant to a settlement stipulation approved today by U.S. District Judge John F. Keenan. In the settlement, SABA admitted and accepted responsibility for submitting information to EX-IM in connection with applying for the loan guarantee without verifying the truth or accuracy of such information and for marking up the costs of certain goods – by as much as 300% – for purposes of generating “cash money.” SABA also agreed to pay $3.5 million and to abstain from participating in any EX-IM loan or loan guarantee programs for seven years. The lawsuit is going forward against BESNELI.
Manhattan U.S. Attorney Preet Bharara said: “The Export-Import Bank is charged with promoting export of U.S.-made goods. It is absolutely unacceptable for exporters and business agents to undermine that mission by misrepresenting how proceeds from loans guaranteed by EX-IM will be used.”
EX-IM Acting Inspector General Michael McCarthy said: “This case shows our commitment to vigorously pursue persons and businesses who scheme to defraud the EX-IM Bank. The OIG appreciates the tenacity of the Southern District of New York in this lengthy and complex investigation.”
EX-IM Chairman Fred Hochberg said: “We take very seriously our commitment to taxpayers and our mission to support U.S. jobs. This should serve notice to any outside entity that tries to defraud the Export-Import Bank, we have zero tolerance for waste, fraud and abuse, and we are constantly analyzing transactions for such activity and will work with our Inspector General to take immediate action in response to any evidence of fraud in EX-IM Bank transactions.”
According to the allegations in the complaint filed in Manhattan federal court:
In 2002, BESNELI and SABA began working together to bid on contracts involving export of U.S. goods to be used in construction projects in Turkey. One of those projects involved TC Basbakani Baskanliginda Darussafaka Cemiyeti (“Darussafaka”), a Turkish non-profit organization, which planned to develop a retirement home complex in Urla. To ensure that they would be picked as the exporter for the Urla project, BESNELI and SABA promised Darussafaka that they would obtain an EX-IM-guaranteed loan to finance that project.
BESNELI and SABA made that promise even though they knew that Darussafaka did not plan to comply with EX-IM’s loan guarantee requirements, including a 15% down payment by the borrower, i.e., Darussafaka, and capping “local costs” at 15%. To circumvent those requirements, BESNELI and SABA made misrepresentations to EX-IM and to Deutsche Bank, the lender, regarding how much of the loan funds would be spent on local costs and whether Darussafaka would furnish a down payment. Further, after BESNELI and SABA fraudulently obtained the loan from Deutsche Bank under an EX-IM loan guarantee, they orchestrated a scheme whereby SABA marked up the costs of the U.S.-made goods being exported to Turkey – sometimes by as much as 300% – in order to generate “cash money” that they funneled back to Darussafaka to fund local costs.
Finally, in 2007, Darussafaka defaulted on the loan from Deutsche Bank that was guaranteed by EX-IM. Pursuant to its loan guarantee, EX-IM reimbursed Deutsche Bank and, as a result, was exposed to millions of dollars in potential losses.
The claims against BESNELI were not resolved by the SABA settlement and will go forward. The Government seeks civil penalties against BESNELI for fraudulently obtaining the loan extended by Deutsche Bank, a federally insured financial institution.
Mr. Bharara thanked the EX-IM’s Office of the Inspector General for its investigative efforts and ongoing support and assistance with the case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Cristine Irvin Phillips, Li Yu, and Ellen M. London are in charge of the case. This case was investigated by the EX-IM OIG in Washington, D.C.
U.S. v. Besneli and SABA Stip of Settlement
U.S. v. Besneli and SABA Civil ComplaintLockport Husband and Wife Plead Guilty to Conspiracy to Manufacture MethamphetamineRead the Press Release
ROCHESTER, N.Y. U.S. Attorney William J. Hochul, Jr. announced today that Thomas W. McCabe, 37, and Leah McCabe, 35, of Lockport NY, pleaded guilty before U.S. District Court Chief Judge William M. Skretny today to conspiracy to manufacture methamphetamine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, a $5,000,000 fine, or both.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that between December 2013 and May 22, 2014, Thomas McCabe conspired with others, including Leah McCabe, to manufacture methamphetamine, a Schedule I controlled substance. On December 6, 2013, law enforcement officers responded to 4890 Saunders Settlement Road in Lockport after receiving a report that there was a clandestine methamphetamine lab in the basement of the residence. Leah McCabe gave consent to search the premises, and in the basement, officers observed a clear, plastic bag containing a clear liquid clamped to the outside of a dresser drawer, a can of drain cleaner, a can of Coleman fuel, and a gas generator, which are used in manufacturing methamphetamine. Officers seized a plate containing a credit card, a razor blade and a white, powdery substance. A field-test of the white powder was positive for methamphetamine. State charges were filed at that time against Thomas McCabe and subsequently against Leah McCabe.
On May 22, 2014, law enforcement officers went to the McCabe residence at 51 Ritchie Avenue Tonawanda, NY, to execute arrest warrants for the couple who failed to appear in court with on the state charges. On that date, officers observed a plastic bag containing what appeared to be methamphetamine oil. During a security sweep of the residence, they observed a plate and credit card which contained a white powdery substance. Thomas McCabe and Leah McCabe were removed from the residence due to safety concerns, and were taken into custody.
During another search, officers discovered materials and equipment used to manufacture methamphetamine, including Coleman fuel, empty pseudoephedrine blister packs, table salt, a plastic funnel, ammonium nitrate, several empty cold packs, sodium hydroxide, a hydrochloric acid gas generator, and a one-pot methamphetamine bottle. A field test of the residue on the plate and credit card was positive for methamphetamine. The substances seized were submitted to the Niagara County Sheriff’s Department Laboratory for analysis, which determined that there was more than two ounces of a mixture and substance containing methamphetamine seized from the McCabe residence.
The pleas are the culmination of an investigation by the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge James J. hunt, the Niagara County Drug Task Force and the Niagara County Sheriff’s Department, both under the direction of Sheriff James Votour.
Sentencing is scheduled for January 14, 2015 at 2:00 before Judge Skretny.Local Paralegal Sentenced for Federal Fraud and False Statement ChargesRead the Press Release
St. Louis, MO – JILLIAN NICHOLS, a local paralegal, was sentenced to 15 months in prison on charges involving her attempt to defraud a law firm client by falsely representing that the prosecutor on the client’s criminal case had solicited a bribe. Nichols also lied to the FBI during their investigation of her illegal conduct.
According to court documents and statements made in court at the time of her guilty plea hearing, Nichols worked for a local law firm, assisting one of the firm’s attorneys on his legal cases. She had no formal legal training and was paid hourly. While she was working at the firm, she worked on the defense of a state felony criminal case pending in St. Louis County Circuit Court against a firm client. As part of her duties, she worked closely with the client in investigating and helping prepare his defense, often meeting with him, as well as speaking with him on the telephone and texting, outside the presence of the defense attorney. Nichols left the defense attorney’s firm in September 2013. After Nichols left the law firm she continued to meet with the client and discuss his criminal case with him. Between June and December 2013, Nichols engaged in a scheme to defraud the client by falsely telling him that the St. Louis County assistant prosecutor assigned to his case had solicited a bribe of $10,000 in order to give favorable consideration in his pending criminal case. Further, she falsely represented that she had favorable evidence “planted” on the client’s cell phone in order to support his defense. She also falsely represented that she had paid the forensic expert hired by the defense attorney to analyze his cell phone so that the expert would validate and verify the “planted” evidence. On November 15, 2013, in response to Nichols’ false statements about the $10,000, the client agreed to give her an initial $5,000 in cash for her to pay the bribe to the prosecutor, and then an additional $5,000 after the prosecutor gave him favorable consideration in his pending criminal case. In order to conceal the scheme, she told the client not to tell his defense attorney of their discussions about bribing the prosecutor or planting evidence on his cellular phone.During the FBI’s investigation of her fraud scheme, Nichols lied repeatedly to Special Agents about her involvement in the scheme when they interviewed her during December 2013.
Nichols, St. Louis, pled guilty July 1st to one count of wire fraud and one count of making false statements. She appeared today for sentencing before United States District Judge Rodney W. Sippel.
This case was investigated by the Federal Bureau of Investigation-Public Corruption Task Force, including officers of the St. Louis Metropolitan Police Department. Assistant United States Attorney Hal Goldsmith handled the case for the U.S. Attorney's Office.
Local Doctor Indicted on Child Porn, Drug ChargesRead the Press Release
ROANOKE, VIRGINIA – A Federal grand jury sitting in the United States District Court for the Western District of Virginia in Roanoke has charged a local doctor with federal drug and child pornography charges.
In an indictment returned today, the grand jury has charged Steven Joseph Collins, age 51, of Roanoke County, Virginia, with one count of receipt of child pornography and two counts of distributing oxycodone by authorizing controlled substance prescription orders outside the usual course of professional practice.
According to the indictment, between July 2010 and July 2013, Collins received digital video and image files of a minor who had not obtained 12-years-of-age, engaged in sexual activity. In addition, the indictment alleges that on separate occasions, January 7, 2014 and April 2, 2014, Collins, in his role as a medical doctor, authorized controlled substance prescription orders for oxycodone outside the usual course of professional practice.
The investigation of the case was conducted by the Tactical Diversion Squad (TDS) of the Drug Enforcement Administration (DEA) and the Department of Homeland Security. The local TDS is comprised of law enforcement officers from the Virginia State Police (VSP), Roanoke City Police Department, Montgomery County Sheriff’s Office, Bedford County Sheriff’s Office, Health and Human Services Office of Inspector General and DEA. Assistant United States Attorney Jennie Waering will prosecute the case for the United States.
Lincoln Man Receives 135 Months for Distributing Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Ian B. Wait, 24, of Lincoln, Nebraska was sentenced for distributing child pornography. The Honorable Richard G. Kopf, Senior United States District Court Judge sentenced Wait to prison for 135 months. There is no parole in the federal prison system. After his release from prison Wait will begin a 15 year term of supervised release and be required to register as a sex offender.
Wait was brought to the attention of law enforcement based on a tip from the National Center for Missing and Exploited Children. An Internet Service Provider reported a user was observed displaying an image of child pornography during a webcam session. The Internet Protocol address of that user was provided to the Nebraska State Patrol. The address was traced to Wait’s residence in Lincoln, Nebraska.
On September 11, 2013, Wait admitted to an Investigator with the Nebraska State Patrol that he had used an internet service to distribute and receive child pornography. He admitted to exchanging texts with an individual representing himself as a ten year old girl. The communications resulted in Wait’s receipt of a sexually explicit photo of a ten year old girl. Wait consented to a search of his computer. A total of 867 images of child pornography were found on the computer.
United States Attorney Deborah R. Gilg expressed her appreciation to the Nebraska State Patrol for their investigation of this case. The case was prosecuted under the Department of Justice’s Project Safe Childhood initiative. Project Safe Childhood is a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Levy County Man Sentenced for Burglary and Theft of FirearmsRead the Press Release
Follow @NDFLNewsGAINESVILLE, FLORIDA –Senior U.S. District Court Judge Roger Vinson sentenced Joshua Sipe, 30, of Newberry, Florida, to a mandatory minimum term of 15 years as an Armed Career Criminal in federal court in Gainesville yesterday. The sentence imposed by the court was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
On June 23, 2013, Sipe burglarized Cash Munny Pawn, in Chiefland, Florida, by breaking through the roof of the business and stealing 17 firearms. Through an investigation conducted by agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Gilchrist County Sheriff’s Office, and the Chiefland Police Department, Sipe and others were arrested. Sipe entered a guilty plea to the theft of the firearms and possession of the firearms by a felon. On the possession count, Sipe qualified as an Armed Career Criminal due to his criminal history and received the mandatory 15 year minimum. Sipe also received a concurrent sentence of five years for the theft.
U.S. Attorney Marsh praised the work of the law enforcement agencies whose investigation led to the convictions in this case.
Law Enforcement Team Receives ADL SHIELD Award for Prosecuting Leaders of Jihadist WebsitesRead the Press Release
ALEXANDRIA, Va. – Federal prosecutors and members of law enforcement were honored yesterday with the Anti-Defamation League’s SHIELD Award for their role in the investigation and prosecution of three men who conspired to use the “Revolution Muslim” websites as a platform to solicit murder and promote violent extremism.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, accepted the award on behalf of the U.S. Attorney’s Office, and he was joined at the ceremony by Principal Deputy Assistant Attorney General Mary McCord of the Justice Department’s National Security Division; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and Sergeant Kevin Branzetti of the New York City Police Department’s (NYPD) Intelligence Bureau.
According to court records, Jesse C. Morton and Yousef Mohamid Al-Khattab founded the Revolution Muslim websites in 2007 to encourage followers to terrorize perceived enemies of Islam. Zachary A. Chesser, formerly of Fairfax, Virginia, joined Revolution Muslim in 2010 as a site administrator.
Morton, Chesser, al-Khattab and their associates used the organization’s Internet platforms to encourage adherents to support Usama bin Laden, Anwar Awlaki, al-Qaeda, the Taliban and others engaged in or espousing jihad. In spring 2010, Morton and Chesser used Revolution Muslim’s online forums to solicit the murder of the South Park television show’s writers and a Seattle, Washington cartoonist for an alleged insult to Islam. Chesser also used Revolution Muslim to promote what he called “Open Source Jihad” by posting information on the manufacture and use of explosives against civilians, law enforcement authorities and U.S. military forces at home and abroad.
In 2011, Chesser pleaded guilty to soliciting murder and attempting to support Al-Shabaab, a designated foreign terrorist group based in Somalia, and he was sentenced to 25 years in prison on Feb. 24, 2011. In 2012, Morton pleaded guilty to soliciting murder, and he was sentenced to nearly 12 years (138 months) in prison on June 22, 2012. In 2013, Al-Khattab pleaded guilty to using the Internet to place others in fear of serious bodily injury or death, and he was sentenced to 30 months in prison on April 25, 2014.
The cases were prosecuted by Assistant U.S. Attorneys Gordon D. Kromberg, Thomas H. McQuillan, Tracy McCormick, Karen L. Dunn, and Special Assistant U.S. Attorney Allison Ickovic, with the assistance of Management Analyst Loraine McNeill of the U.S. Attorney’s Office for the Eastern District of Virginia; and Trial Attorneys John T. Gibbs and Mazen Basrawi from the Justice Department’s National Security Division and Civil Rights Division, respectively.
According to a media advisory issued by the Anti-Defamation League, the SHIELD Awards were created to honor law enforcement for “major achievements in the fight against hate crimes, domestic and international terrorism, and for protecting civil rights. . . . The award’s name reflects law enforcement’s role as protectors, and is also an acronym for the core values of the profession: Service, Honor, Integrity, Excellence, Leadership, and Dedication.”
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the U.S. District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:10-cr-395 (Chesser), 1:12-cr-35 (Morton), and 1:13-cr-418 (Al-Khattab).
Justice Department Announces National Effort to Build Trust Between Law Enforcement and the Communities They ServeRead the Press Release
Attorney General Eric Holder announced today the launch of the Justice Department’s National Initiative for Building Community Trust and Justice. Funded through a $4.75 million grant, the initiative will create a substantial investment in training, evidence-based strategies, policy development and research to combat distrust and hostility between law enforcement and the communities they serve. Recent protests in Ferguson, Missouri, following an officer-involved shooting have brought national attention to the importance of strong police-community relationships, which has been a priority for the Justice Department under Attorney General Holder.
“The events in Ferguson reminded us that we cannot allow tensions, which are present in so many neighborhoods across America, to go unresolved,” said Attorney General Holder. “As law enforcement leaders, each of us has an essential obligation – and a unique opportunity – to ensure fairness, eliminate bias, and build community engagement. The National Initiative for Building Community Trust and Justice represents a major step forward in resolving long standing tensions in many of America’s communities and it will allow us to build on the pioneering work that the Justice Department and our law enforcement partners across the country are already doing to strengthen some of our nation’s most challenged areas.”
The initiative, which will be an ongoing partnership with the Justice Department, will provide training to law enforcement and communities on bias reduction and procedural fairness and will apply evidence-based strategies in five pilot sites around the country. It will also establish a clearinghouse where information, research, and technical assistance are readily accessible for law enforcement, criminal justice practitioners and community leaders.
The three year grant has been awarded to a consortium of national law enforcement experts led by John Jay College of Criminal Justice. Yale Law School, the Center for Policing Equity at UCLA and the Urban institute make up the rest of the consortium. The initiative will be guided by a board of advisors which will include national leaders from law enforcement, academia and faith-based groups, as well as community stakeholders and civil rights advocates.
In a holistic approach, the initiative will simultaneously address the tenets of procedural justice, reducing implicit bias and facilitating racial reconciliation. The initiative will compliment and be advised by other Justice Department components such as the Office of Justice Programs, the Office of Community Oriented Policing Services, the Civil Rights Division and the Community Relations Service.
This Initiative addresses a recommendation in the My Brother’s Keeper Task Force report released in May. The Task Force recommended the Department of Justice establish a vehicle to build capacity in communities and build the evidence base around enhancing procedural justice, reducing bias and supporting reconciliation in communities where trust has been harmed.
Jefferson County Man Sentenced for Drug Trafficking ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 26-year-old Port Arthur, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Michael Joseph Barrett IV pleaded guilty on Feb. 11, 2014, to possession with intent to distribute methamphetamine and was sentenced to 51 months in federal prison today by U.S. District Judge Marcia Crone.
According to information presented in court, on Feb. 19, 2013, law enforcement officers responded to a residence on 32nd Street in Port Arthur after receiving information regarding suspected manufacture of methamphetamine at the location. Consent to search was obtained and a search of the premises revealed a small amount of cocaine, a semi-automatic pistol, and various items associated with methamphetamine manufacture, including a three liter bottle containing a methamphetamine mixture. A federal grand jury returned an indictment on Dec. 4, 2013, charging Barrett with drug trafficking violations.
This case was investigated by the Drug Enforcement Administration, the Port Arthur Police Department and the Jefferson County Sheriff’s Office Crime Lab and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Jacksonville Tax Return Preparer Pleads Guilty to Wire FraudRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Thomas Bandzul (71, Jacksonville) has pleaded guilty to wire fraud. He faces a maximum penalty of 20 years in federal prison. His sentencing hearing has been scheduled for January 13, 2015, before Senior United States District Judge Henry Lee Adams, Jr. Bandzul was indicted on January 30, 2014.
According to court documents, from January 2008 through May 2011, Bandzul was a tax return preparer in Duval and St. Johns counties. He knowingly and willfully made false claims for deductions and credits on 32 tax returns on behalf of his clients, which resulted in additional tax refunds from the IRS. As part of the scheme to defraud, Bandzul would prepare and furnish to his taxpayer client one version of a tax return. He would then make false and fraudulent claims on a separate tax return and electronically file it with the IRS. Bandzul prearranged with his clients to be paid a specified fee out of their anticipated tax refunds. In many cases, Bandzul caused the additional higher tax refunds to be paid to him without his clients’ knowledge or consent. Additionally, Bandzul committed tax fraud on his individual federal tax returns for 2008 and 2009.
The case was investigated by the Internal Revenue Service - Criminal Investigation. It is being prosecuted by Assistant United States Attorney Dale R. Campion.
Investigative Team from WDVA Receive ADL SHIELD Award for Local ProsecutionRead the Press Release
ABINGDON, VIRGINIA – United States Attorney Timothy J. Heaphy announced today that the Anti-Defamation League [ADL] has awarded a local team of prosecutors and investigators with the group’s 2014 SHIELD Award. SHIELD stands for Service, Honor, Integrity, Excellence, Leadership and Dedication.
Assistant United States Attorney Zachary Lee of the United States Attorney’s Office for the Western District of Virginia, FBI Special Agent Timothy Burke of the Richmond Division and FBI Special Agent Stanley Slater of the Atlanta Division were presented with their awards during a September 17 ceremony in Washington D.C. The three were presented the award for the investigation and prosecution of Michael Lee Fullmore.
“The Fullmore prosecution was yet another example of the strong level of interagency cooperation we enjoy in Southwest Virginia,” United States Attorney Heaphy said today. “We are pleased and grateful that the Anti-Defamation League recognized that coordination and the extraordinary efforts of AUSA Lee and the agents who pursued this case.”
Fullmore, a member of the Georgia Knights of the Ku Klux Klan, was sentenced to 52 months of federal incarceration following pleading guilty to two counts of providing firearms to a convicted felon. According to information presented in court by AUSA Lee, Fullmore began taking steps to establish a more violent and radical sub-group of the KKK, which he intended would commit violent crimes against minorities. Fullmore believed the new KKK sub-group could be supported by selling firearms to convicted felons and militia groups.
On numerous occasions, Fullmore sold firearms, including an AR-15 assault rifle and an AK-47 assault rifle with an obliterated serial number, to a convicted felon in Georgia and Virginia who was working with the FBI as a confidential informant.
At the ceremony the ADL honored law enforcement heroes who have protected the nation and communities from hate crimes and terrorist threats. The SHIELD award was created in 2010 to annually honor law enforcement for major successes in the fight against hate crimes and domestic and international terrorism. The Award’s name reflects law enforcement’s role as protectors, and is also an acronym for the core values of the profession: Service, Honor, Integrity, Excellence, Leadership, and Dedication.
AUSA Zachary Lee, along with FBI SAs Tim Burke (far left) and Stan Slater, were recently awarded the Anti-Defamation League's 2014 SHIELD Award.
Indiana Manufacturer Pleads Guilty to Clean Air Act False Statement ViolationsRead the Press Release
Calumite Company LLC (Calumite), a manufacturer of an additive used in the production of glass, entered a plea of guilty today in U.S. District Court in Hammond, Indiana, to two Clean Air Act false statement violations. The company has agreed to pay a $325,000 fine, serve a two-year term of probation, and implement an environmental compliance plan that includes an annual environmental compliance training program. Sentencing will be scheduled for a later date.
Calumite, located near the shores of Lake Michigan in Portage, Indiana, manufactures and sells a powdery substance of the same name to various glass manufacturers. The company collects slag, a waste product of the steel industry, dries it in a hot gas oven, crushes it into a fine powder, and then ships it off-site to glass manufacturers, who use it as an additive to lower the temperature at which glass can be produced.
Calumite's Portage facility was subject to a Title V Clean Air Act Operating Permit issued by the Indiana Department of Environmental Management (IDEM). Among other things, the permit required that Calumite operate, maintain, and monitor several “baghouses” on-site that are used to control and minimize emissions of a fine particulate. One of the baghouses, known as the loadout baghouse, was used to collect emissions of particulate that occurred during the loading of product onto tractor trailers and rail cars for shipment to customers.
A differential pressure gauge (DP gauge) attached to each baghouse continuously monitored and measured the efficiency and effectiveness of the baghouses and helped to determine whether they were operating properly. Calumite’s permit required that DP gauges on the baghouses be read daily, while the baghouses were operating, and that the results be recorded on daily maintenance log sheets. The company also was required to submit quarterly reports to IDEM that stated whether the company was in compliance with permit requirements.
From Dec. 5, 2008, through late July 2009, the company did not maintain the loadout baghouse in operating condition and the DP gauge was broken. Nevertheless, during this same time period, employees continued to load tractor trailers and rail cars with product for shipment off-site. Calumite employees knowingly continued to routinely fill out daily logs that falsely reflected DP gauge monitoring readings that were within the range allowed by the permit, and caused false information to be submitted to IDEM in the company’s quarterly reports.
The Clean Air Act makes it a crime to knowing make a material false statement or omit material information from a document that is required to be filed or maintained under the statute. Both the daily maintenance logs and the quarterly reports were required by Calumite’s permit and the Clean Air Act.
The case was investigated by the Northern District of Indiana Environmental Crimes Task Force, including agents from the U.S. Environmental Protection Agency’s Criminal Investigation Division. The case was prosecuted by the U.S. Attorney’s Office for the Northern District of Indiana and the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.
Four Defendants in Custody for Allegedly Making Credit Cards with ‘Skimmed’ Information in Schemes That Cost Banks at Least $2 MillionRead the Press Release
LOS ANGELES – Four men were taken into custody this morning on federal charges related to alleged schemes involving the use of “skimming devices” to steal credit card data and using that data to manufacture and sell fraudulent credit cards.
The four were arrested pursuant to federal indictments returned late last month by a federal grand jury in Los Angeles. The two schemes involve stolen information from more than 10,000 accounts and more than $2 million in losses. Two federal indictments charge a total of five defendants.
Among those arrested this morning are three named in a 13-count indictment:
Armen Bislamian, 32, of Van Nuys;
Khachatur Bislamyan, 31, of Pasadena; and
Sisak Saribekyan, 28, of West Covina.
The second indictment, which alleges four counts, names:
Karlen Khatchatryan, 30, of Sherman Oaks, who self-surrendered this morning; and
Hartunyun Grigoryan, 34, of North Hollywood, who has agreed to surrender to authorities tomorrow.
Both indictments allege conspiracies to commit bank fraud, possession of counterfeit and unauthorized access devices, illegal possession of device-making equipment, and aggravated identity theft.The first indictment outlines how Bislamian, Bislamyan and Saribekyan allegedly conspired to steal account information from unsuspecting customers and created fake credit cards with the stolen account information. According to the indictment, Bislamian manufactured and obtained “skimming devices” designed to intercept data from credit and debit cards that were swiped by unsuspecting customers at point-of-sale terminals. Law enforcement authorities found the skimming devices installed at gas pumps in Irvine, Encinitas and San Diego. The indictment further alleges that Bislamian and Bislamyan stored stolen account information at their homes and at a facility dedicated to manufacturing fraudulent credit cards. The bogus cards were made through a process called “re-encoding” – in which stolen account information is placed on the magnetic strip on the back of a plastic card. As alleged in the indictment, Bislamyan and Saribekyan sold and used fraudulent cards re-encoded with stolen account information.
The second indictment alleges that Khatchatryan and Grigoryan operated a re-encoding facility in Los Angeles where they used stolen account information to make fraudulent credit cards. Law enforcement found this re-encoding facility at a liquor distributor in Los Angeles.
Bislamian, Bislamyan and Saribekyan are expected to be arraigned on the indictment this afternoon at 2:00 in United States District Court in downtown Los Angeles.
Khatchatryan and Grigoryan are expected to be arraigned tomorrow afternoon.
The conspiracy charges alleged in the indictments each carry a statutory maximum penalty of 30 years in federal prison. The charge of aggravated identity theft carries a mandatory consecutive two-year prison term.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
This case is the result of an investigation by the United States Postal Inspection Service, the Glendale Police Department, San Diego County District Attorney’s Office Investigators, the San Diego Police Department, the San Diego Sheriff’s Department, the Irvine Police Department, the Westminster Police Department, the United States Secret Service, the United States Postal Service – Office of Inspector General; the General Services Administration, the United States Marshals Service, the Los Angeles Joint Regional Intelligence Center, U.S. Immigration and Customs Enforcement’s Homeland Security Investigation, and the Los Angeles Police Department.
Release No. 14-121
Founder of Burnsville-based Company Indicted for Multi-year Investment Fraud SchemeRead the Press Release
United States Attorney Andrew M. Luger today announced the indictment of BRYAN REICHEL, 59, founder and former principal shareholder of PureChoice, Inc. (PureChoice), on seven counts of Wire Fraud. REICHEL is charged with stealing more than $2.5 million in investment funds and loans from a variety of investors by lying about the intended use of the funds and failing to disclose the true status of the company’s products.
“Protecting the citizens of Minnesota from financial predators is one of my top priorities,” said U.S. Attorney Luger. “This office will continue working diligently to ensure that criminals who engage in investment fraud are held responsible for their actions.”
According to documents filed in court, from April 2007 until November 2009, REICHEL solicited investments and loans to PureChoice, a Burnsville-based company that sold air quality monitors. During the indicted period, REICHEL stole money from investors, primarily Victim A, by lying about the success of the company and not telling investors that PureChoice’s main product did not comply with federal regulations.
According to the indictment, in 2007, REICHEL sold Victim A $600,000 worth of PureChoice stock, falsely representing that the funds would be used for manufacturing and operational expenses. Instead, REICHEL used the funds to purchase stock in other companies and pay personal credit card debt.
According to the indictment, in May 2008 and July 2008, REICHEL asked Victim A to provide PureChoice with loans in the amount of $800,000 and $200,000, respectively, stating that the funds were needed to “bridge the gap” until the next round of funding was complete. Again, REICHEL used the majority of the funds for personal use, including the purchase of stock in other companies and paying off thousands of dollars in credit card debt.
As part of the scheme, REICHEL sent a sales and marketing update to PureChoice investors and prospective investors in which he allegedly lied about the company’s corporate agreement with 3M. In the update, REICHEL stated that PureChoice was “currently working to expand [its] existing relationship” with 3M, when, in reality, REICHEL had received notice from 3M of its intent to allow its agreements with PureChoice to expire. REICHEL also sent investors a company update that included a Government Services Administration publication that had been altered to appear as if it specifically referred to PureChoice and its products.
According to the indictment, in September 2009, REICHEL asked two victims to provide a $1.5 million loan to PureChoice to purchase manufacturing materials so the company could meet projected sales and hire additional staff. In order to secure the loan, REICHEL again misrepresented the company’s relationship with 3M and expressly stated that the funds would be used to purchase products from suppliers. Over the course of four transactions, REICHEL obtained a $1.5 million loan from Victim A, of which a significant portion was used to pay off earlier investors in PureChoice.
This case is being prosecuted by Assistant U.S. Attorneys Joseph H. Thompson and David J. MacLaughlin.
U.S. Attorney Luger thanked the United States Postal Inspection Service, Internal Revenue Service-Criminal Investigations, and Federal Bureau of Investigation for conducting the investigation.
Defendant Information:
BRYAN REICHEL
Prior Lake, MN
Charges:
• Wire Fraud, 7 countsThe charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Fort Lauderdale Jury Convicts Hollywood Man of Kidnapping and Sex Trafficking by ForceRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Scott Israel, Sheriff, Broward Sheriff’s Office, and Frank Fernandez, Chief, Hollywood Police Department, announce the conviction of Shaun Eric McKinley, 35, on charges of kidnapping, in violation of Title 18, United States Code, Section 1201(a) and sex trafficking by force, fraud or coercion, in violation of Title 18, United States Code, Section 1591(a).
Sentencing for McKinley has been scheduled for November 25, 2014, before U.S. District Judge William P. Dimitrouleas. At sentencing, McKinley faces a minimum mandatory sentence of 15 years in prison for the sex trafficking charge and a possible maximum sentence of life in prison for both charges.
According to records filed in this case and statements made in court, McKinley met a 28 year old female outside his home in Hollywood in December of 2013. Within three days of meeting her, McKinley was acting as her pimp and physically assaulting her for what he saw as minor infractions, such as returning home late from a prostitution date. Thereafter, the victim was required to meet all customers at McKinley’s home where he could keep an eye on her. The victim averaged approximately 5-7 dates a day, seven days a week, with all the earnings going to McKinley. The victim first attempted to leave McKinley in February but he quickly found her. When he got her home, by dragging her for blocks by the hair, McKinley punished her by making her strip naked, covering her head with a pillow case, hog-tying her with extension cords and beating her with a board. The victim waited until April to get the courage to attempt another escape, this one successful. Unfortunately, on May 18, 2014, McKinley lured her out of hiding using a ruse to get her into a dark alley, where he physically assaulted her, threw her into a car and drove away with her. The kidnapping was captured on a surveillance video from a nearby business and was played for the jury. The victim was able to escape only when McKinley stopped at a convenience store for a cigar, and left his friend in charge of watching her. That friend, a government witness, testified that after McKinley was out of sight, he unlocked the car door so the victim could run. After flagging down a passing ambulance, the victim was taken to Memorial Regional Hospital where she was treated for her injuries, which included a fractured front tooth, a lip laceration and head contusions. Still undeterred, and fearing the victim would talk to police, McKinley showed up at the hospital looking for her, dressed in blood covered clothes. A concerned nurse and an alert Hollywood Police Officer working a detail kept McKinley from reaching the victim, and McKinley was placed under arrest.
Mr. Ferrer commended the investigative efforts of ICE-HSI, the Broward County Sheriff’s Office and the Hollywood Police Department. The case was prosecuted by Assistant U.S. Attorneys Corey Steinberg and Paul Schwartz.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former State Lawmaker SentencedRead the Press Release
A former State Representative from Detroit was sentenced yesterday to a year in prison after having been found guilty of structuring financial transactions, announced U.S. Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Acting Special Agent in Charge Jarod Koopman, Internal Revenue Service – Criminal Investigation.
Kenneth Daniels, 56, was convicted earlier this year of structuring financial transactions following a jury trial with co-defendants Carlos Powell, Eric Powell and Earnest Proge before U.S. District Judge Stephen J. Murphy, III in U.S. District Court in May 2014.Evidence presented at trial showed that Daniels, who had served as the Vice Chairman of the Insurance and Financial Services Committee while a member of Michigan’s State Legislature, supported Powell’s large-scale drug operation by making multiple financial transactions to conceal Powell’s illegal activities from law enforcement. Daniels received $19,000 from Carlos Powell, broke those funds into two smaller amounts, and went to two separate banks to obtain cashier checks in an attempt to evade legal requirements to report transactions exceeding $10,000. Daniels returned the checks to Powell, who used the funds to purchase a Mercedes. The jury found that Daniels structured these financial transactions for Powell so that Powell’s finances would not be scrutinized.
The investigation of the Carlos Powell drug trafficking organization was a multi-year investigation and included agents from the Drug Enforcement Agency, Internal Revenue System, Immigration and Customs, Homeland Security and local officers in Northville, Plymouth, Warren, Redford, Detroit, Macomb County and the Michigan State Police.
Former Sorrento Police Chief Sentenced for Making False Statements in Civil Rights InvestigationRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that EARL L. THERIOT, age 66, of Sorrento, Louisiana, was sentenced today by Chief U.S. District Judge Brian A. Jackson to serve twenty-four (24) months of probation as a result of his conviction for making false statements to an FBI Special Agent in connection with a criminal civil rights investigation. THERIOT was also ordered to pay a $2,500 fine.
THERIOT had previously admitted that on November 1, 2013, while serving as the Chief of Police for the Town of Sorrento and following a 911 emergency police dispatch, he contacted an unresponsive individual at a local gas station, placed her in the front seat of his police unit, and, instead of bringing her back to her residence, transported her to his office at the Sorrento Police Department where he engaged in inappropriate sexual contact with her. THERIOT later pled guilty to making numerous false statements to an FBI Special Agent and a Deputy with the Ascension Parish Sheriff’s Office who were investigating whether THERIOT violated federal civil rights laws, among other things. As a result of this prosecution, THERIOT also resigned as Chief of Police.
United States Attorney Green stated: “This defendant had no business being in a position of law enforcement authority. The people of Sorrento deserve better. I am pleased that our office played a key role in his removal and felony conviction, and I am proud of the cooperation between all the federal and state agencies. I am particularly grateful to Sheriff Jeff Wiley of the Ascension Parish Sheriff’s Office, District Attorney Ricky Babin of the 23rd Judicial District, and the FBI, all of whom worked closely with my office to ensure that the defendant would be removed from his position of trust and that his criminal activity would be addressed.”
This prosecution and investigation were conducted jointly by the United States Attorney’s Office, the Federal Bureau of Investigation, the Ascension Parish Sheriff’s Office, and the District Attorney’s Office for the 23rd Judicial District.
The case is being prosecuted by Assistant United States Attorneys Chris Dippel and Alan Stevens.
Former President of Omni Facility Pleads Guilty to Fraud and Tax EvasionRead the Press Release
A Plymouth, Michigan, man pleaded guilty today to wire fraud and tax evasion in the U.S. District Court for the Eastern District of Michigan, the Justice Department and the Internal Revenue Service (IRS) announced.
According to court documents, Michael Stover was the president of Omni Facility Services, a janitorial company located in Southfield, Michigan, and as part of his responsibilities Stover approved and paid subcontractors. Stover created a fictitious subcontractor called Envirovac Inc., and from 2004 through 2010, he created fictitious invoices from Envirovac that billed Omni for work that was never performed. Stover then approved payment of those invoices on Omni’s behalf, and over the course of this scheme, Stover embezzled approximately $2,178,423 from Omni. On his tax return for 2007, Stover evaded taxes by not reporting the income he embezzled from Omni.
Stover faces a statutory maximum sentence of 20 years in prison on the wire fraud count and five years in prison on the tax evasion count. He also faces three years of supervised release and a maximum fine of $250,000 for each count. U.S. District Judge Stephen J. Murphy set sentencing for Jan. 23, 2015.
The case was investigated by special agents of IRS-Criminal Investigation. Trial Attorneys Yael T. Epstein and Kenneth C. Vert of the Tax Division prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division website.
Former Mayor of Manalapan, N.J., Found Guilty on All Counts: Mortgage Fraud, Identity Theft, and Obstruction of JusticeRead the Press Release
Defrauded Investment Client of $250,000 and Submitted Falsified Loan Application in Order to Purchase Farm in Manalapan
TRENTON, N.J. – The former mayor of Manalapan, New Jersey, was convicted at trial today on charges related to his acquisition of farmland in Monmouth County, New Jersey, U.S. Attorney Paul J. Fishman announced.
Andrew Lucas, 37, was found guilty today on all 11 counts of an indictment charging him with wire fraud, an illegal monetary transaction, loan application fraud, false statements to the IRS, aggravated identity theft, obstruction of a grand jury investigation and falsification of records in a federal investigation. The jury deliberated three hours before returning its verdict following a two-week trial before U.S. District Judge Freda L. Wolfson in Trenton federal court.
According to documents filed in this case and the evidence at trial:
On Dec.15, 2009, Lucas submitted a loan application to a New Jersey bank requesting $525,000 to finance his purchase of the Burke Farm property in Manalapan. Lucas provided the bank with falsified versions of his 2007 and 2008 tax returns, as well as a falsified version of a 2007 tax return for a relative whose name was also on the loan application. Lucas also falsely reported that he had a total of $210,000 in cash.
Lucas owned and operated Lucas Capital Advisors LLC (Lucas Capital), through which he served as an investment advisor and manager to multiple individuals. To obtain the $250,000 down payment for the property, Lucas approached Bobby Janowski, who was a client of Lucas Capital, to pitch an investment in an entity called VLM Investments LLC (VLM). On Feb. 15, 2010, Lucas presented a written note to Janowski, which stated that the $250,000 investment was to be secured by “…interest in the equipment, fixtures, inventory and accounts receivable” of VLM. However, Lucas failed to inform Janowski that at the time the note was signed, VLM did not exist. Lucas also failed to disclose to Janowski that Lucas intended to make personal use of the funds. It was not until three days later, on Feb. 18, 2010, that Lucas created VLM by registering it with the State of New Jersey and the IRS, using the name and Social Security number of Lucas’ out-of-state relative, Thomas Littlefield, without his knowledge or permission.
On Feb. 22, 2010, Lucas authorized the wiring of $250,000 from Janowski’s Lucas Capital investment account to a VLM bank account that had Lucas as the only authorized signer. On March 1, 2010, Lucas withdrew this money in the form of a bank check, which he provided the next day to the closing attorney for the purchase of the Burke Farm property.
Lucas also filed tax returns for VLM for tax years 2011 and 2012, both times listing Littlefield’s name and Social Security number without Littlefield’s knowledge or permission.
Federal investigators served Lucas with subpoenas on Feb. 7, 2013, for the records of VLM and Lucas Capital Advisors. In response, Lucas provided federal authorities with a fabricated and back-dated letter purporting to be from Littlefield concerning a transaction for the purchase of the Burke Farm property.
The counts of wire fraud and falsification of records in a federal investigation are each punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine. Loan application fraud is punishable by a maximum potential penalty of 30 years in prison and a $1 million fine. The counts of conduction an illegal monetary transaction and obstruction of a grand jury investigation are each punishable by a maximum potential penalty of 10 years. Each of the charges of false statements to the IRS is punishable by a maximum potential penalty of five years in prison. Aggravated identity theft is punishable by a mandatory prison term of two years, to be run consecutive to any other sentence. Sentencing is scheduled for Jan. 20, 2015.
U.S. Attorney Fishman credited special agents of the FBI Red Bank Office, under the direction of Special Agent in Charge Aaron T. Ford; special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and investigators with the U.S. Attorney’s Office, for the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorneys Matthew Skahill in Camden and Rahul Agarwal in Newark, both of the U.S. Attorney’s Special Prosecutions Division.14-331
Defense counsel: Mario F. Gallucci Esq., and Michael DeSantis Esq., of Staten Island, N.Y.
Lucas, Andrew Indictment
Former Manager of "TheBus" Credit Union Sentenced to Jail for EmbezzlementRead the Press Release
HONOLULU – On September 18, 2014, Dona Takushi, age 54, a former Oahu Transit Services Employees Federal Credit Union (OTSEFCU) employee and manager, was sentenced on one felony count of embezzlement and misapplication of funds and two felony counts of false entries into the books of the OTSEFCU in a proceeding before United States District Judge Helen Gillmor. Takushi was sentenced to fifteen (15) months imprisonment and ordered to pay restitution in the amount of over $78,000. OTSEFCU is the credit union for current and former employees and family members of the Oahu Transit Services, the entity that operates “TheBus”.
United States Attorney Florence T. Nakakuni said that, according to the charging documents, Takushi obtained online access to the VISA payment system for OTSEFCU and falsely inputted VISA payments for herself and a family member. From approximately 2010 to 2012, Takushi made entries crediting her own account and that of her family member with $40,000 in payments which were not actually made.
Additionally, from approximately 2007 to 2012, Takushi made one hundred and fifty-three (153) false entries into the books of the OTSEFCU so that she and an associate could obtain over $55,000 in loans that they could not qualify for under OTSEFCU policies. Lastly, in 2009, Takushi falsely recorded entries concerning a 2008 Subaru Forester that a customer relinquished to OTSEFCU because he could no longer afford the OTSEFCU loan payments on the car. Takushi falsely charged-off this over $18,000 car loan and intentionally did not log the car into the repossessed collateral inventory records of OTSEFCU so that she could execute a transfer of title placing herself and her daughter on the car title as owners, all without providing any payment to OTSEFCU.
Takushi was the third former OTSEFCU employee to be sentenced for embezzlement offenses. Jenny Nishida, age 41, was sentenced to thirteen (13) months imprisonment for one felony count of embezzlement and misapplication of funds. Nicole Cheung was also sentenced to 20 days imprisonment for one felony count of embezzlement and misapplication of funds. Information has not been presented to the court linking the three together in their criminal activity.
The case was investigated by the Federal Bureau of Investigation. The prosecution was handled by Assistant United States Attorney Cynthia Lie.
Former Gadsden County Deputy Sheriff Indicted for Civil Rights ViolationRead the Press Release
Follow @NDFLNewsTALLAHASSEE – James Corder, 54, a former captain with the Gadsden County Sheriff’s Office, has been indicted on charges of violating the civil rights of an arrestee, obstruction of justice, and making false statements in a federal investigation. The indictment was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The five-count indictment alleges that on July 25, 2013, Corder deprived an arrestee of his constitutional right to due process of law by stealing approximately $1,785 belonging to the arrestee. The indictment also alleges that Corder made false and misleading statements concerning the theft to agents of the Federal Bureau of Investigation and the Florida Department of Law Enforcement.
If convicted, Corder faces a maximum sentence of 20 years in prison for obstruction of justice, five years in prison for making false statements in a federal investigation, and one year in prison for deprivation of civil rights. Trial is scheduled for November 10, 2014, before United States District Judge Mark E. Walker.
The case was investigated by the Federal Bureau of Investigation and the Florida Department of Law Enforcement. It is being prosecuted by Assistant U.S. Attorney Karen Rhew-Miller
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Bookkeeper at Saint Gabriel the Archangel Church and School Charged with Embezzling FundsRead the Press Release
LOUISVILLE, Ky. – The former bookkeeper at Saint Gabriel the Archangel Church and School was charged today, by federal grand jury, with embezzling $83,191 in funds from the Louisville parish by means of wire fraud announced David J. Hale, United States Attorney for the Western District of Kentucky.
Beginning on or about August 13, 2010, and continuing to on or about August 6, 2013, Tammy Goodlett, 47, devised a scheme to defraud Saint Gabriel. According to the single count indictment, Goodlett committed wire fraud when, as bookkeeper, she exceeded her authorized access by transferring funds from Saint Gabriel’s bank account to her own bank accounts, made unauthorized credit card expenditures, and manipulated financial records to make unpaid debts appear paid, and by means of such fraud, obtained funds and services to which she was not entitled.
Further, on or about August 9, 2012, Goodlett, initiated an electronic transaction in the amount of $4,000 from Saint Gabriel’s bank account with Fifth Third Bank into her own personal bank account, which caused an interstate wire transaction to be initiated from Fifth Third Bank’s servers, located in Kentucky, to the Federal Reserve Bank’s servers, located in New Jersey.
If convicted at trial, Goodlett could be sentenced to no more than 20 years in prison, could be fined no more than $250,000 and serve no more than three years of supervised release.
This case is being prosecuted by Assistant United States Attorney Stephanie Zimdahl and is being investigated by the United States Secret Service and the Louisville Metro Police Department.
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Former Beaumont ISD Employees Sentenced for Stealing over $4 MillionRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – The former Director of Finance and Comptroller of the Beaumont Independent School District (BISD) have been sentenced to federal prison for federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Devin Wayne McCraney, 35, of Beaumont, pleaded guilty on Apr. 14, 2014, to the charge of fraud upon programs receiving federal funds and was sentenced to 68 months in federal prison today by U.S. District Judge Ron Clark.
Sharika Baksh Allison, 43, of Beaumont, pleaded guilty on Apr. 14, 2014, to the charge of conspiracy to commit fraud upon programs receiving federal funds and was sentenced to 46 months in federal prison today by Judge Clark.
McCraney and Allison were also ordered to pay restitution in the amount of $4,041,705.27.
According to information presented in court, McCraney, Director of Finance for BISD, and Allison, Comptroller for BISD, devised schemes in which they embezzled over $4 million from BISD. They were indicted by a federal grand jury on Jan. 8, 2014.
“These punishments demonstrate that if you violate the public trust, being the true will of the citizens of Beaumont to have and maintain a responsible public school system, you will be punished,” said U.S. Attorney Bales. “The Beaumont school district enjoys many good, dedicated educators and employees. This is the beginning of the end for those who chose to breach our trust, and it also begins the removal of the cloud that remains over the heads of those great employees who, on a daily basis, are responsible for the care and education of Beaumont’s children.”
“These defendants knowingly and willfully abused their position of trust to steal education funds that were supposed to be used to provide services for the most innocent of victims – school children. That is unacceptable,” said Neil Sanchez, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s South Central Regional Office. “I’m proud of the work of OIG Special Agents and our law enforcement colleagues for holding these individuals accountable for their criminal actions.”
"Personal greed put the children of BISD at risk, and eroded the public's trust in our system," said FBI Special Agent in Charge Perrye K. Turner. "Let today's sentences help restore that trust and remind others that our elected and appointed officials must and will be held accountable at all levels of government. We cannot do this job alone, and we encourage individuals with information about public corruption to come forward."
“Today’s sentencings are just one step in the process of holding certain officials accountable for breaching the public’s trust,” said Jefferson County District Attorney Cory Crenshaw. “Today’s results are another example of the task force’s cooperative - federal, state and local law enforcement - efforts to investigate corruption within the BISD. Our mission, of identifying those who have failed to uphold their duty to the children of this community by committing fraud, will continue. Those who have committed crimes will be punished, and confidence in our school district will be rebuilt.”
McCraney and Allison were both ordered to surrender to the Bureau of Prisons unit where they will be assigned by 2:00 pm on Oct. 21, 2014. McCraney requested a facility close to West Lake, LA. Allison requested the facility in Bryan/College Station, Texas, as it is the only federal facility housing women in Texas.
This case was prosecuted as part of the Joint Task Force established in March 2014 between the U.S. Attorney’s Office for the Eastern District of Texas and the Jefferson County District Attorney’s Office to investigate and prosecute major crimes – more specifically, violent crime and crimes related to the abuse of public trust in Jefferson County, Texas.
If you have any information related to this matter, please call the Federal Bureau of Investigation at 409-832-8571.
This case was investigated by the Federal Bureau of Investigation and the U.S. Department of Education Office of Inspector General. This case was prosecuted by Assistant U.S. Attorneys Christopher T. Tortorice and Joseph R. Batte.
Foreign National Indicted for Possessing Firearm and Growing Marijuana in Mendocino National ForesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Ivan Espinoza Villafana, 24, of Mexico, charging him with conspiracy to manufacture marijuana, manufacture of marijuana, possession of a firearm by an illegal alien, and depredation of public lands and resources, United States Attorney Benjamin B. Wagner announced.
According to court documents, on August 19, 2014, law enforcement officers entered a marijuana cultivation site near Ice Springs in the Mendocino National Forest in Glenn County. Villafana was arrested at the site and had a Smith & Wesson revolver in his possession. Officers also found a rifle in the camp area of the site. Significant natural resource damage was observed at the site. Vegetation and trees had been cut and removed to improve growing conditions for the marijuana plants, water was diverted from a nearby stream to water the plants, and fertilizers and pesticides were found at the site which, based on the terrain, would likely have drained into waterways in the National Forest.
This case is the product of an investigation by the U.S. Forest Service, the Glenn County Sheriff’s Office, and the California Department of Fish and Game. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
If convicted, Villafana faces a maximum statutory penalty of 20 years in prison and a $1 million fine for the conspiracy and marijuana manufacturing charges, and 10 years in prison and a $250,000 fine for the other charges. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Federal Judge Resentences Birmingham Officer to A Year and A Day in Prison for Using Excessive ForceRead the Press Release
BIRMINGHAM – A federal judge today changed a sentence of probation to one year and day in prison for a Birmingham Police officer convicted of using excessive force when he beat a handcuffed defendant in 2007, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
U.S. District Judge Inge P. Johnson resentenced COREY L. HOOPER for depriving the civil rights of Martez Gulley when he repeatedly struck the man with his hands and fists while Gulley was handcuffed and secured in the backseat of a patrol car on Sept. 6, 2007. A federal jury convicted Hooper, 36, in 2012 for depriving Gulley's civil rights while Hooper operated under his authority as a police officer. Hooper must report to prison Dec. 1
The 11th U.S. Circuit Court of Appeals, ruling on a government appeal of the probationary sentence, vacated it in May and returned the case to the federal district court for resentencing. Prosecutors challenged the probationary sentence as unreasonable, arguing it did not satisfy the need for general deterrence of the crime of excessive use of force by police officers. The appeals court held that the original five-year probationary sentence was "substantively unreasonable," and that the district judge had "expressly declined to consider the need for Hooper's sentence to adequately deter other police officers from using excessive force."
"Most police officers honor their oaths, day in and day out, to uphold the law and protect the public, but this defendant disgraced his badge and harmed a person he was sworn to protect," Vance said. "Today's sentence reflects that abusing the authority of a police badge is a serious crime and it will be punished accordingly. I thank the FBI for its hard work investigating and compiling evidence in this case. My office remains committed to aggressive civil rights enforcement."
"This case is representative of the FBI's commitment to enforce and protect civil rights," Schwein said. "While the vast majority of law enforcement officers uphold and obey the law, in those rare instances where serious transgressions occur and the public's trust is violated, citizens should know that the FBI will conduct a complete investigation to preserve and restore that trust," he said.According to court records in the case, the blows Hooper struck caused Gulley serious injury. Gulley's "slight size in comparison to Hooper and his medical history made him particularly vulnerable to the heavy face blows delivered by Hooper during the attack," the government said in its 2013 sentencing memorandum.
The government also argued that Hooper committed perjury when he testified that he punched Gulley only after Gulley kicked at him from the patrol car. "Had the jury believed Hooper's version was truthful, they could have decided that the level of force used by Hooper was justified, or they could have decided they were not satisfied beyond a reasonable doubt that Hooper was guilty of using excessive force under the circumstances. The jury's guilty verdict reflects they did not believe Hooper's made-up version of the events."
The FBI investigated the case, which Assistant U.S. Attorney J. Patton Meadows prosecuted.
Federal Inmate Indicted for Assaulting Correctional OfficerRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a single-count indictment today against Mexican national Cresencio Ochoa-Tovali, 46, charging him with assaulting a federal correctional officer, United States Attorney Benjamin B. Wagner announced.
According to court documents, on July 27, 2014, Ochoa-Tovali, an inmate at the Federal Correctional Institution in Herlong, California, was walking in the recreation yard with a group of inmates when a fight broke out in a different part of the facility. After being alerted to the fight, a correctional officer ordered the group of inmates, including Ochoa‑Tovali, to sit on the ground. The inmates complied. The correctional officer approached Ochoa-Tovali, who suddenly stood up and struck the officer.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
If convicted, Ochoa-Tovali faces a maximum statutory penalty of eight years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Federal Grand Jury Returns 38-Count Indictment in Connection with Alleged Investment Scheme Involving Sports DrinkRead the Press Release
Defendant Solicited More Than $7 Million From 50 Victims Or MoreSALT LAKE CITY - A federal grand jury returned a 38-count indictment Wednesday afternoon charging Randy Olshen, age 51, of Newport Beach, Calif., with mail fraud, wire fraud, and money laundering in connection with a scheme involving sports hydration drinks. At times relevant to the indictment, Olshen maintained a residence in Summit County, Utah.
The indictment alleges Olshen solicited and received more than $7 million from 50 or more victims as a part of his scheme.
According to the indictment, Olshen was one of the founders and president of an entity known as Innovative Health Solutions, LLC (IHS), organized in 2008. IHS specialized in manufacturing and selling sports hydration drinks designed to boost energy and stamina. One of the products marketed by the company was H2O Overdrive. The indictment alleges that Olshen, in an effort to promote the growth of IHS, sought investors and made representations to encourage investments in the company.
The indictment alleges that beginning around 2009 and continuing until about February 2013, Olshen devised a scheme to defraud IHS investors and divert portions of the invested funds for purposes not disclosed to investors in a manner inconsistent with his representations and promises. According to the indictment, Olshen misrepresented annual sales figures for the company. For example, according to the indictment, he represented that IHS had approximately $1.1 million in sales in 2009, when in fact, it had approximately $98,275 in sales in 2009. He represented that IHS had more than $28 million in sales in 2012, when in fact, it had approximately $579,239 in sales in 2012. He also represented that the company had large receivable accounts with various national chains such as Costco, Rite Aid, CVS, and Food Lion. In fact, no such large receivable accounts were owed to IHS.
According to the indictment, Olshen concealed material facts, including that he created two sets of IHS accounting records, one that accurately represented company finances and one that was provided to investors and potential investors; fabricated paperwork, such as sales records, to support his misrepresentations regarding the growth of IHS; failed to make numerous payments to creditors; paid a portion of investor funds to others as commissions for obtaining investments for IHS; that he personally declared Chapter 7 bankruptcy around October 18, 2011; and that he used IHS funds for his own personal benefit and expenses in excess of his reported salary.
The indictment alleges 12 counts of mail fraud, nine counts of wire fraud and 17 counts of money laundering. The potential maximum penalty for each count of mail fraud and wire fraud is 20 years with fines of $250,000. Counts 22 through 34 of money laundering have potential 20 year penalties and $500,000 penalties. Counts 35-38 of money laundering have potential 10 year sentences and fines of $250,000. A summons has been issued to the defendant to make an initial appearance on the charges Oct. 22, 2014, at 11:15 a.m. before U.S. Magistrate Judge Paul M. Warner.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
The case is being investigated by special agents of the FBI, IRS Criminal Investigation, and the Utah Division of Securities. It is being prosecuted by the U.S. Attorney’s Office in Salt Lake City.
Federal Civil Complaint Against FBI Agents Is DismissedRead the Press Release
SAN JUAN, Puerto Rico – On September 17, 2014, after three days of jury trial, U.S. Magistrate Judge Camille Velez-Rivé dismissed the civil claims filed by Plaintiff Carlos Hernandez-Cuevas alleging false arrest and malicious prosecution against FBI Special Agents William Taylor and Steven Martz, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
Plaintiff Hernandez-Cuevas alleged that after his arrest in Puerto Rico he spent three months detained in a federal penitentiary in New Jersey, where he was charged with money laundering in connection to drug trafficking activities. The criminal charges were later dismissed by the Government. In her dismissal, U.S. Magistrate Judge Camille Velez Rivé determined that the final disposition in the civil case should not go to the jury based on insufficient evidence. Judge Velez-Rivé, analyzed the evidence presented at trial and noted, in pertinent part that:
“Testimonies show that there was enough evidence through the investigation which led the agents to reasonably and logically believe that Plaintiff was a courier on July 20, 2004. As such, there was probable cause to arrest Plaintiff Hernàndez-Cuevas based on the totality of the circumstances, the evidence collected at the time including the information provided by the confidential informant and other evidence as testified, and based on the collective knowledge of all the agents who participated in the Paracash investigation.”
“The dismissal of this case upholds the legitimate actions undertaken by federal law enforcement officers during the investigation which led to Hernandez-Cuevas’ arrest.” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
The government attorneys in this case were Assistant U.S. Attorney Lisa Bhatia-Gauthier and Trial Attorney Leah Taylor from the U.S. Department of Justice’s Constitutional Torts Branch.
# # #Fairview Man Sentenced for Production of Child PornogrphyRead the Press Release
Kevin S. Kolb, 44, of Fairview, Tenn., was sentenced yesterday by United States District Court Judge Aleta Trauger to 25 years in prison yesterday for five counts of production of child pornography, announced David Rivera, United States Attorney for the Middle District of Tennessee.
At his plea hearing on March 31, 2014, Kolb admitted that he had taken sexually explicit images of a young girl when she was between the ages of seven and ten years old, and that he had distributed the images on the internet via email and a photograph website. Investigators also found approximately 600 sexually explicit images and 12 videos of child pornography in Kolb’s possession.
Upon his release, Kolb will remain on supervised release for life and will be required to participate in sex offender treatment, among other conditions. Kolb had faced a mandatory minimum sentence of fifteen years in prison and up to 150 years for these crimes.
This matter was investigated by the Federal Bureau of Investigation and the United States was represented by Assistant U.S. Attorney S. Carran Daughtrey.
El Paso, Texas Man Pleads Guilty to Methamphetamine Trafficking Charge in New Mexico Federal CourtRead the Press Release
ALBUQUERQUE – Alejandro Carrillo, 37, of El Paso, Texas, pleaded guilty today in federal court in Las Cruces, N.M., to a methamphetamine trafficking charge.
Carrillo was arrested on a criminal complaint on April 23, 2014, after a New Mexico State Police officer executed a traffic stop on his tractor trailer for a motor vehicle infraction. A consensual search of the trailer by the New Mexico State Police and U.S. Border Patrol, who were summoned to assist, revealed that Carrillo was transporting approximately nine pounds of methamphetamine that were concealed in the cab. In July of 2014, Carrillo was indicted and charged with possession of methamphetamine with intent to distribute.
Today Carrillo entered a guilty plea to the indictment and admitted that on April 23, 2014, he unlawfully possessed 4.28 kilograms of methamphetamine with the intention of transporting it from El Paso to Denver, Colo. In his plea agreement, Carrillo admitted that he was to be paid $4000.00 if he was successful in making the delivery.
Carrillo was remanded into federal custody after entering his guilty plea. He will be detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Carrillo faces a prison sentence of not less than ten years in prison.
This case was investigated by the El Paso office of HSI, the U.S. Border Patrol and the New Mexico State Police, and is being prosecuted by Assistant U.S. Attorney E. Garreth Winstead, III of the Las Cruces Branch Office.
East Islip Doctor Pleads Guilty to the Illegal Distribution of OxycodoneRead the Press Release
Carmine G. Mandarano, a medical doctor whose practice is located in East Islip, New York, pleaded guilty today to the illegal distribution of oxycodone, a highly addictive prescription pain killer. Mandarano entered his plea before United States Magistrate Judge Gary R. Brown at the United States Courthouse located in Central Islip, New York. At sentencing, Mandarano faces a maximum of 20 years’ imprisonment and a $1 million fine. Mandarano has agreed to forfeit $150,000 in criminally-derived proceeds to the government.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; James J. Hunt, Acting Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York; and Tom F. O’Donnell, Special Agent-in- Charge, Health and Human Services, Office of the Inspector General (HHS/OIG), New York Regional Office.
“Medical professionals who hand out prescriptions for narcotics when there is no legimate medical need to do so are drug dealers, pure and simple. Doctors who violate their oaths to do no harm, and the law, will continue to be held accountable,” Ms. Lynch said, extending her grateful appreciation to each of the law enforcement agencies for their assistance in this case.
During his plea, Mandarano admitted that in 2011 he issued a prescription for oxycodone to a patient that he knew was using illegal narcotics, had obtained multiple narcotics prescriptions from other medical professionals, and was abusing painkillers.
Oxycodone is a scheduled controlled substance that may be dispensed by medical professionals only for a legitimate medical purpose in the usual course of a doctor’s professional practice. It is a powerful and highly addictive drug and is increasingly abused because of its potency when crushed into a powder and ingested, leading to a heroin-like euphoria.
Mandarano’s guilty plea is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative. In January 2012, this Office and the DEA, in conjunction with the five District Attorneys in this jurisdiction, the Nassau and Suffolk County Police Departments, the New York City Police Department, and New York State Police, along with other key federal, state, and local government partners, launched the Prescription Drug Initiative to mount a comprehensive response to what the United States Department of Health and Human Services’ Center for Disease Control and Prevention has called an epidemic increase in the abuse of so-called opioid analgesics. So far, the Prescription Drug Initiative has brought over 160 federal and local criminal prosecutions, including the prosecution of 15 health care professionals, taken civil enforcement actions against a hospital, a pharmacy, and a pharmacy chain, removed prescription authority from numerous rogue doctors, and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The government’s case was prosecuted by Assistant United States Attorney Lara Treinis Gatz.
The Defendant:
Name: CARMINE G. MANDARANO
Age: 62
Residence: Northport, NY
Dorchester Woman Pleads Guilty in Connection with Unlicensed Cosmetic InjectionsRead the Press Release
BOSTON –A Dorchester woman pleaded guilty yesterday in connection with offering cosmetic buttock and lip injections in exchange for money.
Valentina Perez Tavarez, a/k/a Rossi Tavarez, 37, pleaded guilty to receipt in interstate commerce of a misbranded device and the proffered delivery thereof for pay. U.S. District Judge F. Dennis Saylor IV scheduled sentencing for Dec. 9, 2014
Between February and September 2011, Tavarez, who was not a licensed physician or nurse, offered buttock and lip augmentation injections in her Dorchester home using a substance she referred to as “Metacor” and “Metacrill.” In a recorded conversation she stated, “Metacor” is “very safe,” and also stated that, “in this country [] like you know that’s illegal.” Tavarez referred to the substance as the “best stuff” that lasts “forever.” Tavarez offered to charge $700 per injection into each buttock.On Sept. 9, 2011, special agents visited Tavarez at her residence in Dorchester at which time Tavarez admitted that she had performed the procedure on at least 10 customers. From her bedroom closet she retrieved an opaque plastic bottle containing a clear, viscous liquid, along with a FedEx shipping box. The bottle bore a label “Estetical Plus 100% Natural,” along with a written description in Spanish that referred to its content as massage oil and provided directions for external skin application. The bottle did not provide any information or directions for using the substance for subcutaneous cosmetic injections. The bottle had been shipped from Colombia via Federal Express. Tavarez admitted that she had arranged for the shipment of the substance with a laboratory in Columbia and that she had paid by wire $500 per box containing three bottles of the substance.
The charging statute provides a sentence of no greater than one year in prison, one year of supervised release, five years of probation, and a fine of $10,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; James Royal, Acting Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Maxim Grinberg of Ortiz’s Health Care Fraud Unit.