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Thursday 18 September 2014
Con Man Sentenced to over Five Years in Prison for Fraud SchemeRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced that Chief U.S. District Judge Brian A. Jackson sentenced JOHNATHAN E. WILLIAMS, age 34, of Baton Rouge, Louisiana, to serve sixty three (63) months in federal prison as a result of a multi-year fraud scheme. The defendant was also ordered to pay $835,650 in restitution and forfeit an additional $500,000 as illegal proceeds of his scheme. Upon his release from federal prison, WILLIAMS will be required to serve 2 years of supervised release.
WILLIAMS had previously pled guilty to a wire fraud scheme in which, from 2008 through 2011, he defrauded dozens of victims to obtain money that he could use to fund his gambling activity and other personal expenses. To accomplish his scheme, among a variety of other false stories, WILLIAMS would tell his victims that he had a trust fund containing millions of dollars, and that he would be able to repay his victims as soon as he gained access to the trust fund. WILLIAMS falsely told some victims that he was an heir to the family that produces Tabasco hot sauce. As part of the scheme, WILLIAMS used a false and fictitious letter, on an attorney’s letterhead, falsely representing that WILLIAMS had a trust fund worth “in excess of $20 million.” Throughout his scheme, WILLIAMS defrauded more than thirty (30) victims and obtained more than $800,000. At the conclusion of today’s sentencing, because the Court found that WILLIAMS had continued to engage in criminal conduct even after his March 2014 guilty plea, the Court revoked WILLIAMS’s release and ordered him immediately remanded to the custody of the United States Marshal.
U.S. Attorney Green stated: “We hope today’s sentence sends a strong message to those who would engage in fraud to line their pockets. This defendant’s long-running scheme caused his victims tremendous hardship, both financial and emotional, threatening the financial security and retirement plans of many along the way. My office will work hard to aggressively pursue con artists like Mr. Williams.”
This investigation was conducted by the Federal Bureau of Investigation, with assistance from the Louisiana Department of Public Safety and Corrections’ Division of Probation and Parole. The case is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Criminal Chief of the Criminal Division.
Chinese Restaurant Manager Sentenced for Harboring Illegal Aliens for Commercial GainRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Zhou Wang Ni, 48, of Rochester, NY, who was convicted of harboring illegal aliens for commercial gain, was sentenced two years probation by U.S. District Court Judge David G. Larimer. The defendant was also placed on 3 months of home detention and was ordered to pay a $5,000 fine.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that the defendant is the manager of the Grand Super Buffet Chinese Restaurant located on Jefferson Road in Henrietta, NY. As manager, Ni hired several illegal aliens to work in the restaurant who he knew were not lawfully present in the United States. The defendant housed these workers in properties he owned around Rochester and paid them in cash. While conducting surveillance, federal agents observed Ni driving these individuals to work at the restaurant on several occasions.
Homeland Security Investigations conducted an immigration audit of the restaurant during the course of the investigation during which the defendant concealed the fact that those illegal aliens were working. However, agents had video footage of those same workers being picked up by the defendant in the morning, being driven to the restaurant, and then working inside during the day.
The sentencing is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.Captured Fugitive Guilty of Health Care Fraud ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas — A 44-year-old captured fugitive has pleaded guilty in connection with a federal health care fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Vivian Yusuf, formerly of Port Harcourt, Nigeria, pleaded guilty to conspiracy to commit health care fraud on Sep. 17, 2014 before U.S. Magistrate Judge John D. Love.
Yusuf, a fugitive, wanted since March 2011, was arrested on June 3, 2014 at George Bush Intercontinental Airport in Houston. Yusuf had been indicted for conspiracy to commit health care fraud, health care fraud, and aggravated identity theft on Jan. 12, 2012.
According to information presented in court, Yusuf, the former owner of Ivy Health Care Supply, a Houston-area medical supply company, and Aghaegbuna “Ike” Odelugo, James Reese, and others carried out a scheme to defraud Medicare through the marketing of power wheelchairs and accessories, as well as “ortho kits,” which primarily consisted of a bag of orthotic items, including braces, wraps, and supports, and a heat lamp or heat pad. As part of the scheme, the defendant and her co-conspirators illegally obtained protected health information, including names, dates of birth, and Medicare numbers from elderly individuals. Yusuf and her co-conspirators supplied beneficiaries with kits and power wheelchairs which were not prescribed or otherwise authorized by a physician and which were not wanted by the beneficiaries. Claims were submitted by the defendant and her co-conspirators for approximately 790 beneficiaries located primarily in Texas and Louisiana. In some instances, physicians’ signatures were forged and false claims were submitted to Medicare in the names of Medicare beneficiaries who were deceased. By means of fraudulent billing practices, the defendant and her co-conspirators unlawfully submitted false and fraudulent claims to Medicare of more than $3.4 million and obtained more than $1.6 million.
Odelugo and Reese were indicted for their involvement in similar health care fraud schemes. Odelugo pleaded guilty to conspiracy to commit health care fraud, health care fraud, and money laundering and was sentenced to 72 months in federal prison. The loss to Medicare as a result of Odelugo’s scheme was approximately $9.9 million. Reese pleaded guilty to health care fraud and tax evasion and was sentenced to 180 months in federal prison. The loss to Medicare as a result of Reese’s scheme was approximately $8.6 million.Yusuf faces up to 10 years in federal prison when she appears before U.S. District Judge Michael H. Schneider for sentencing. A sentencing date has not been set.
This case is being investigated by the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU), and the Federal Bureau of Investigation (FBI). Assistant U.S. Attorney Nathaniel C. Kummerfeld and Special Assistant U.S. Attorney Ken McGurk are prosecuting this case.
Cape Girardeau Neurosurgeon, Owner of Medical Device Supplier and Their Two Companies Indicted on Federal Anti-Kickback ChargesRead the Press Release
Cape Girardeau, MO –MIDWEST NEUROSURGEONS LLC and its owner, DR. SONJAY FONN, and DS MEDICAL LLC and its owner, DEBORAH SEEGER, were indicted for allegedly violating the Medicare Anti-Kickback Statute by conspiring to solicit and receive commissions from medical device manufacturers related to the purchase of spinal implants and supplies used during spinal fusion surgeries performed by Dr. Fonn.
According to the indictment, Dr. Fonn and his fiancée, Ms. Seeger, both of Cape Girardeau, jointly operated DS Medical LLC to serve as the distributor of medical devices and supplies to Dr. Fonn and his neurosurgery practice, Midwest Neurosurgeons LLC. Through DS Medical, Ms. Seeger and DS Medical demanded and were paid exorbitant commissions by medical device manufacturers for medical devices and supplies purchased by the hospital where Dr. Fonn performed spinal fusion surgeries. The hospital’s purchases were based on Dr. Fonn’s decision to use those devices and supplies during operations he performed. According to the indictment, once DS Medical started operating, Dr. Fonn altered the way he practiced medicine, generally using more spinal implants in each of his surgeries while performing more surgeries than he typically performed before or after DS Medical was operating. In December 2008, the first full month of operation for DS Medical, Dr. Fonn ordered approximately $1,330,090 worth of spinal implants for his surgeries, more than twice as much as his nearest medical peer in the local health care market. The commissions paid to DS Medical and Ms. Seeger by the manufacturers were allegedly used to purchase a house where Dr. Fonn and Seeger resided, a boat, an airplane and various home improvements, which they shared.
Dr. Sonjay J. Fonn, Deborah Seeger, DS Medical, LLC and Midwest Neurosurgeons, LLC were indicted by a federal grand jury today in Cape Girardeau on one felony count of conspiracy to solicit and receive illegal kickbacks and three felony counts of anti-kickback violations.
If convicted, each of the charges against Dr. Fonn and Deborah Seeger carry a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the United States Department of Health and Human Services-Office of the Inspector General. Assistant United States Attorney Dorothy McMurtry is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Caldwell Man Indicted for Dumping Tires on Public LandRead the Press Release
Boise - Terry Dorton Anderson, 49, of Caldwell, Idaho, made his initial appearance today on charges of two counts of felony injury to government land, U.S. Attorney Wendy J. Olson announced. He was indicted on September 9, 2014, by a federal grand jury in Boise. Trial is set for November 10, 2014, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The indictment alleges that between July and December 2012, Anderson dumped junk tires in Squaw Creek Canyon near Highway 95 south of Marsing, and near a dirt road off Highway 78. The lands where the dumping occurred are Federal public lands administered by the Bureau of Land Management in Owyhee County. The part of Squaw Creek Canyon where the dumping of about 500 tires occurred is nearly 1,700 feet deep. The indictment alleges that it will cost between $32,049 and $56,649 to remove the tires, clean up, and rehabilitate that area of Squaw Creek Canyon. The Indictment also alleges that it will cost between $7,156 and $13,027 to remove and clean up the approximately 400 tires dumped off Highway 78.
Each felony charge of injury to federal public lands is punishable by up to 10 years in prison, a maximum fine of $250,000, and up to three years of supervised release.
The case was investigated by the Bureau of Land Management, Idaho Department of Environmental Quality, Canyon County Sheriff’s Office, and Owyhee County Sheriff’s and Prosecutor’s Offices.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Beckley Woman Receives Prison Sentence for Heroin DistributionRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that Teruko Miller, 29, of Beckley, West Virginia was sentenced today to one year in federal prison for distribution of heroin. Miller previously pled guilty in June of 2014, to selling heroin to a person who was cooperating with law enforcement authorities. The drug deal took place on Stanaford Road in Beckley, West Virginia.
This case was investigated by the Beckley/Raleigh County Drug and Violent Crime Unit. This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Defendant was sentenced by United States District Court Judge Irene C. Berger.
Beaumont Federal Inmate Sentenced for Deadly AssaultRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 23-year-old Forsyth, Missouri man serving time at a Beaumont federal prison has been sentenced for the deadly assault of another inmate in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jacob Smith pleaded guilty on Apr. 16, 2014 to assault with intent to commit murder and was sentenced to 150 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, on Oct. 25, 2012, Smith was incarcerated at the Beaumont Federal Correctional Institution – Medium facility in Beaumont, Texas. Smith and another prisoner entered the cell of inmate Edward Lee Bowlin, who they incorrectly believed was incarcerated for crimes related to sexual contact with children. They assaulted Bowlin with their hands and feet and then left the cell. Shortly thereafter, Smith returned to Bowlin’s cell and continued to beat him causing Bowlin to sustain serious head and brain trauma. Bowlin fell into a coma, in which he remained until his death on Nov. 25, 2013. Smith was indicted by a federal grand jury on Aug. 7, 2013.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Prisons and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
Baton Rouge Man Indicted for Fraud Against Healthcare Entities and Aggravated Identity TheftRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned an indictment against LARRY D. BUTLER, age 49, of Baton Rouge, Louisiana. The indictment charges the defendant with wire fraud, in violation of Title 18, United States Code, Section 1343, false representation of a social security number, in violation of Title 42, United States Code, Section 408(a)(7)(B), and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). The indictment also includes a forfeiture allegation which requires the defendant to forfeit the proceeds of his fraud if convicted.
The indictment alleges that the defendant engaged in a scheme to defraud multiple healthcare entities from July 2013 through August 2014. The defendant allegedly used false credentials, false social security numbers, a false California driver’s license, and other false documentation in order to conceal his criminal history and obtain the pay and benefits associated with being employed by the victims. He also allegedly stole from the victims through the misuse of company credit cards for personal expenses, including furniture, travel, and meals. According to the indictment, the defendant sought to fraudulently obtain almost $300,000 through the scheme.
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the U.S. Secret Service, and the East Baton Rouge Parish Sheriff’s Office, along with the cooperation and assistance of the District Attorney’s Office for the Nineteenth Judicial District. It is being prosecuted by Assistant United States Attorney Ryan Crosswell.
NOTE: An indictment is an accusation by the Grand Jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Barboursville Pharmacy Owner Arraigned on Federal ChargesRead the Press Release
Forty-count Indictment Alleges Drug Distribution and Money Laundering
Huntington, W.Va. – United States Attorney Booth Goodwin announced today that Kofe Ohene Agyekum appeared before United States Magistrate Judge Cheryl A. Eifert yesterday for an arraignment on a forty-count indictment charging him with drug distribution and money laundering. Agyekum pleaded not guilty to the charges.
The indictment, returned on September 10, 2014, by a federal grand jury sitting in Huntington, alleges that Agyekum was the director and president of KAYPAT Medical Inc., which did business as A+ Care Pharmacy, located in Barboursville, West Virginia. Agyekum was employed at A+ Pharmacy as a pharmacist intern.
Count One of the indictment alleges that Agyekum conspired to unlawfully distribute oxycodone and hydromorphone from August 2013 through July 2014. Counts Two through Four of the indictment allege that Agyekum unlawfully distributed oxycodone and hydromorphone on specific days in June and July of 2014. The remaining thirty-five counts in the indictment allege that Agyekum engaged in money laundering by depositing cash proceeds from the drug conspiracies at various banks in Barboursville with the intent of concealing the source of the cash.
The indictment also seeks to forfeit more than $2 million in cash and a luxury vehicle.
The case has been assigned to Chief United States District Judge Robert C. Chambers. The trial date has been set for November 18, 2014.
The case is being investigated by the Drug Enforcement Administration and the Internal Revenue Service. Assistant United States Attorney Monica D. Coleman is responsible for the prosecution.
Note: An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
Attorney General Eric Holder Announces National Effort by the Justice Department to Build Trust Between Law Enforcement and the Communities They ServeRead the Press Release
Memphis, TN – Attorney General Eric Holder announced today the launch of the Justice Department’s National Initiative for Building Community Trust and Justice. Members of the Attorney General’s Advisory Committee (AGAC)’s Racial Disparities working group joined the Attorney General for the announcement in Washington, DC. Edward L. Stanton III, United States Attorney for the Western District of Tennessee, is a member of the AGAC Racial Disparities working group and joined the Attorney General for today’s announcement in Washington.
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 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.
United States Attorney Stanton said, "I was pleased to join Attorney General Holder for today's announcement of this key initiative, which will help ensure fairness, eliminate bias, and build community engagement throughout the country. My office and our law enforcement partners have always worked hard to build and preserve strong, cooperative police-community relationships throughout West Tennessee. We will continue to make this a top priority."
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.
Attorney Charged with Concealing A Fugitive from ArrestRead the Press Release
SAN JUAN, Puerto Rico – On September 16, 2014, a federal grand jury in the District of Puerto Rico returned an indictment against state criminal defense attorney, Lemuel Velilla Reyes, charged with concealing a person from arrest, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. This investigation was led by the Federal Bureau of Investigations (FBI) Public Corruptions Squad and the assistance of the Drug Enforcement Administration (DEA).
On July 14, 2011, Velilla-Reyes legally represented federal fugitive Wilfredo Rodríguez- Rodríguez, aka “Fredo”, aka “Cape”, aka “Capellan”, under the false name of “Felix Otero-Torres” on local drug and weapon charges.
Wilfredo Rodríguez-Rodríguez has an outstanding arrest warrant since July 14, 2010, in a federal case U.S. v. José Colón-de Jesus, et. al. Crim. No. 10-251 (JAF) where he is listed the fifth individual in the 110 codefendant indictment for participating as a leader in a drug trafficking conspiracy to distribute controlled substances at the Virgilio Davila, Las Gardenias, Brisas de Bayamón, and Falin Torrech housing projects, and other areas within the Bayamon Municipality. Velilla-Reyes was known as the attorney for the drug trafficking organization which Rodríguez-Rodríguez was a part of, and had legally represented him in a prior criminal state case in 2006.
In the early morning hours of July 14, 2011, the Police of Puerto Rico arrested Rodríguez-Rodríguez in Toa Baja while they were executing state arrest warrants. Upon his arrest, he provided the false name of Felix Otero-Torres and did not provide or have in his person any identification documents.
While at the police station, attorney Velilla-Reyes arrived to legally represent Rodríguez-Rodríguez under the false name he had provided. Velilla-Reyes stood by while the charges against his client where brought forth under the false name. He then appeared in court during the local probable cause proceedings and falsely represented to the court that his client Felix Otero-Torres could not recall his social security number or his full address. Velilla-Reyes requested that bail be set without electronic monitoring and told the court he would continue to represent his client throughout all the proceedings. He also assured his client’s fulfillment of pre-trial release conditions and his appearance in court. Rodríguez-Rodríguez, who was affirmatively identified during the days that followed, did not show up to the police station for booking and did not return to any court proceeding. Velilla-Reyes continued as the attorney in record, but failed to appear in any of the subsequent court hearings. To this day Wilfredo Rodríguez-Rodríguez is still a fugitive.
“Our efforts to eradicate corruption in the judicial system of Puerto Rico will include investigations and prosecutions such as this one. The actions committed by this attorney and his effort to conceal a federal fugitive from arrest through illegal conduct, undermine the public’s trust in the judicial system, which is a cornerstone to our democracy.” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
“Acts like the ones alleged to have been committed by Attorney Lemuel Velilla, in this indictment, undermine the credibility of the judicial system and violates the trust and expectation of the residents of Puerto Rico.” said Carlos Cases, Special Agent in Charge for the FBI. “The FBI is fully committed to identify and investigate corruption at all levels.”
Assistant U.S. Attorneys Myriam Y. Fernàndez and Jenifer Y. Hernàndez, Deputy Chiefs of the Narcotics Unit, are in charge of the prosecution of the case. If convicted the defendant faces a maximum sentence of five years or a fine of no more than $250,000.00, or both for count Title 18, United State Code, Section 1071. Indictments contain only charges and are not evidence of guilt. The defendant is presumed to be innocent until and unless proven guilty.
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Amite Man, Torrie Brumfield, Sentenced to 16 Years in Prison on Federal Drug ChargesRead the Press Release
U.S. Attorney Kenneth Polite announced that TORRIE BRUMFIELD, a resident of Amite, Louisiana, was sentenced today by U.S. District Judge Carl J. Barbier to serve 16 years in prison for his role in a large-scale drug conspiracy.
On March 25, 2014, BRUMFIELD was convicted by a federal jury for conspiracy to possess and distribute, and distribution of more than 100 grams of crack cocaine.
In a separate trial in the same case, co-defendant MARCO DILLON was also found guilty of a conspiracy to possess and distribute more than 100 grams of crack cocaine. DILLON received a sentence of 97 months in prison. Co-defendants FLOYD HAMPTON, WILL DUNN and DAVID CHANEY plead guilty to their role in the conspiracy and testified at the trials of BRUMFIELD and DILLON. HAMPTON, DUNN and CHANEY were sentenced to 36 months, 12 months and a day, and 23 months, respectively.
U.S. Attorney Polite thanked the following investigating agencies for their efforts: Drug Enforcement Administration (“DEA”) New Orleans Field Office, Tangipahoa Sheriff’s Office, and the Hammond Police Department.
The case was prosecuted by Assistant United States Attorneys John F. Murphy and Michael E. McMahon.
Agawam Man Sentenced for EmbezzlementRead the Press Release
BOSTON – An Agawam tax preparer was sentenced yesterday in U.S. District Court in Springfield for embezzling more than $400,000 from a corporate client.
James F. Hansmann, 86, of Agawam, Mass., was sentenced by U.S. District Judge Michael A. Ponsor to three years of probation and ordered to pay $408,035 in restitution to his client and $86,692 to the Internal Revenue Service. Hansmann also is permanently enjoined from preparing tax returns. In July 2013, Hansmann pleaded guilty to mail fraud and tax evasion.
Hansmann prepared corporate tax returns for a West Springfield company. Between 2007 and 2011, he instructed the company president to make out checks for estimated tax payments which he promised he was transmitting to the Internal Revenue Service. Instead, Hansmann deposited the checks into his personal bank accounts and used the money to pay person expenses. The West Springfield company was left with a huge tax bill for the years of unpaid taxes, which its president believed had been fully paid.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Shelly Binkowski, Inspector in Charge of the United States Postal Inspection Service, made announcement. The case was prosecuted by Assistant U.S. Attorney Karen L. Goodwin of Ortiz’s Springfield Branch Office.
Wednesday 17 September 2014
United States Attorney Asks Court to Dismiss Federal Child Enticement IndictmentsRead the Press Release
LITTLE ROCK, AR – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, has filed motions with the appropriate district courts to dismiss the federal indictments against Kenneth Wayne Thompson, age 23, of Bradford, Arkansas; Benjamin Cade Vardell, age 20, of Jonesboro, Arkansas; and Lucas Aaron Oden, age 20, of Paragould, Arkansas. The Indictments charged each defendant with one count of using facilities and means of interstate commerce to entice a minor to engage in sexual activity in violation of Title 18, United States Code, Section 2422(b). Prior to filing the motions to dismiss, all three defendants pleaded guilty to sexual assault in the second degree and were sentenced in Craighead County, Arkansas, Circuit Court.
“When I was sworn in as United States Attorney, a friend sent me a copy of the United States Supreme Court’s opinion in United States v. Berger. In that opinion, Justice Sutherland writes:
The United States Attorney is the representative not of an ordinary party to a controversy, but of a sovereignty whose obligation to govern impartially is as compelling as its obligation to govern at all; and whose interest, therefore, in a criminal prosecution is not that it shall win a case, but that justice shall be done. As such, he is in a peculiar and very definite sense the servant of the law, the twofold aim of which is that guilt shall not escape or innocence suffer. He may prosecute with earnestness and vigor—indeed, he should do so. But, while he may strike hard blows, he is not at liberty to strike foul ones. It is as much his duty to refrain from improper methods calculated to produce a wrongful conviction as it is to use every legitimate means to bring about a just one.
I strive each day to live up to this ideal.” Thyer stated. “With that in mind, I do not believe that justice will be done in these cases by continuing these particular federal prosecutions. While I am firmly convinced that the defendants’ conduct was unlawful, I do not believe that a possible federal conviction and the ten-year mandatory minimum sentence that would accompany such a conviction would serve the ends of justice. For that reason, I have chosen to exercise my prosecutorial discretion and have directed my office to file motions to dismiss in each of these cases.” Thyer went on to say. “While neither I personally nor any member of my office took any position on the sentences received by these defendants in state court, I personally believe that they were appropriate based on the facts of the cases as I know them.” Thyer concluded.
U.S. Medical Center Supervisor Pleads Guilty to Concealing Assault on InmateRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an officer at the U.S. Medical Center for Federal Prisoners in Springfield, Mo., pleaded guilty in federal court today to dissuading an inmate at the facility from reporting an assault by a correctional officer.
James C. Myrick, 42, of Nixa, Mo., pleaded guilty before U.S. Magistrate Judge David P. Rush to dissuading a federal inmate from reporting the possible commission of a federal offense.
According to today’s plea agreement, Shawn Springer, an inmate at the U.S. Medical Center for Federal Prisoners, was struck by a correctional officer, identified as Officer D.P., on Dec. 3, 2012. The incident occurred while Springer was in the office Myrick shared with another lieutenant. Springer had been involved in a dispute with a nurse, the wife of the correctional officer, earlier that day.
Myrick admitted that, immediately after the incident, he encouraged Springer not to tell anyone that he was struck in the head by Officer D.P. Springer was offered improved cell accommodations for his silence. After leaving Myrick’s office, Springer was moved to a cell where he had access to a television. As a result of Myrick’s inducement, Springer told a nurse that he had hit his head while cleaning his bunk, instead of telling the nurse that he was hit in the head by Officer D.P. in Myrick’s presence.
The next day, Springer reported to a psychologist that he had been assaulted by Officer D.P. During the investigation that followed, Myrick submitted a memo that claimed Springer’s head injury was pre-existing and made no mention of Officer D.P. using force on Springer. This statement was contradicted by other staff members who provided sworn affidavits that supported the conclusion that Springer’s injury was not pre-existing to his visit to Myrick’s office.
An investigator from the U.S. Department of Justice Office of the Inspector General was dispatched to the Federal Medical Center and interviewed Myrick and others. Myrick initially claimed no force was used on Springer, but later admitted that he failed to report that Springer had been struck by Officer D.P. in his office. He also admitted that his original memo was intentionally misleading.
Officer D.P. admitted striking Springer but denied trying to conceal the matter. Officer D.P. told the investigator that he asked Myrick if a memo was required and Myrick told him no.
Under federal statutes, Myrick is subject to a sentence of up to three years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the U.S. Department of Justice Office of the Inspector General and the U.S. Medical Center for Federal Prisoners – Special Investigation Unit.U.S. District Court Judge Orders Shannon Conley to Remain in Custody Pending SentencingRead the Press Release
DENVER – U.S. District Court Judge Raymond P. Moore this afternoon issued an order denying Shannon Conley’s request for bond pending sentencing. Conley, therefore, will remain in custody pending sentencing. Judge Moore’s order is attached.
Conley recently pled guilty to conspiracy to provide material support to a designated foreign terrorist organization (ISIS). That charge carries a penalty of not more than 5 years in federal prison, and up to a $250,000 fine. She is scheduled to be sentenced by Judge Moore on January 23, 2015 at 1:30 p.m.
Two South Mississippi Residents Sentenced on Drug ChargesRead the Press Release
Jackson, Miss – Craig Lamark Kaho, 44, of McComb, and Latoya Renae Bonds, 30, of Summit, were sentenced this week by U.S. District Judge Carlton W. Reeves on charges relating to cocaine distribution in Pike County, Mississippi, announced U.S. Attorney Gregory K. Davis.
Kaho was sentenced to 78 months in federal prison followed by three years of supervised release for his role in a conspiracy to possess with intent to distribute cocaine base (“crack”).
Bonds was sentenced to 56 months in federal prison followed by three years of supervised release and a $1,500.00 fine for possession with intent to distribute cocaine base.
A third defendant in the case, Jermaine Henderson, is scheduled for sentencing on October 1, 2014.
Kaho and Bonds were indicted following an Organized Crime Drug Enforcement Task Force investigation into drug distribution in the Pike County, Mississippi area dubbed “Operation Lights Out in PG”. The investigation was led by DEA, HIDTA, and the Mississippi Bureau of Narcotics with assistance from the Pike County Sheriff’s Department, the McComb Police Department and the Mississippi Highway Patrol. Assistant U.S. Attorney Erin Chalk prosecuted the case.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
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Help us combat the proliferation of sexual exploitation crimes against children.
Two More Men Admit Roles in Armed Robbery of New Jersey Target Store on Black Friday 2012Read the Press Release
TRENTON, N.J. –Two Newark men admitted this week to robbing a Target Store in Union, New Jersey, on “Black Friday” in November 2012, U.S. Attorney Paul J. Fishman announced today.
Lavell Jones, 29, pleaded guilty today before U.S. District Judge Anne E. Thompson in Trenton federal court to an indictment charging him with one count of Hobbs Act robbery. DaQuaan Vaughn, 36, pleaded guilty before Judge Thompson on Sept. 16, 2014, to a superseding information charging him with one count of Hobbs Act robbery and one count of using a firearm in furtherance of a crime of violence. Vaughn also pleaded guilty to an unrelated count of firearms trafficking in connection with his unlawful sale of firearms between April and June 2012.
Vaughn, Jones, and two other men – Darrell A. Carter, 24, of Irvington and Maryland Liggins, 29, of Newark – were arrested on June 19, 2013, and charged by criminal complaint in connection with the Target robbery. Carter and Liggins each pleaded guilty before Judge Thompson in May 2014 to informations charging them with Hobbs Act robbery. Carter also pleaded guilty to one count of using a firearm in furtherance of a crime of violence. Sentencing dates for both Carter and Liggins are pending.
According to documents filed in this case and statements made in court:On Nov. 23, 2012, Vaughn, Carter, Jones and Liggins robbed a Target store located on Springfield Avenue in Union on Black Friday – the day after Thanksgiving – which is considered to be one of the busiest shopping days of the year. Jones posed as a shopper and served as a lookout inside the store. He alerted the others when the store was closing and money was being transferred from the store’s registers to the cash room. Liggins served as the getaway driver.
Before closing, Carter and Vaughn waited in the bathroom. When an employee entered the bathroom, Carter and Vaughn restrained the employee and threatened him with a firearm. After the store closed, Carter and Vaughn entered the cash room, restrained other Target employees with zip ties and robbed them at gunpoint, stealing more than $50,000 from a cash cart and safe. Then they fled the store and ran out to a vehicle – driven by Liggins – that was parked on the shoulder of nearby Route 78.
The charge of Hobbs Act robbery carries a maximum potential penalty of 20 years in prison. The charge of using a firearm in furtherance of a crime of violence carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years, which must run consecutively to any other prison term. The firearms trafficking charge against Vaughn carries a maximum potential penalty of five years in prison. Each of these counts also carries a maximum fine of $250,000. Sentencing for Vaughn is scheduled for Jan. 6, 2015, and sentencing for Jones is scheduled for Jan. 7, 2015.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the guilty pleas. He also thanked the Union Police Department for its role in the investigation and Target corporate security for its cooperation.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Criminal Division in Trenton.
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Defense Counsel:Carter: Peter Carter Esq., Newark
Liggins: Joseph Rotella Esq., Newark
Vaughn: Timothy Donohue Esq., West Orange, New Jersey
Jones: Richie Roberts Esq., NewarkJones, Lavell Indictment
Vaughn, DaQuaan InformationTwo Men Plead Guilty in International Stolen Car and Identity Theft Internet ScamRead the Press Release
San Diego – United States Attorney Laura E. Duffy announced that Edmund Seshie and Abdul Rezak Shaib pled guilty today to being part of a West African-based organized international car theft and identity theft ring.
In their guilty pleas, Shaib and Sheshie admitted purchasing stolen credit cards and corresponding counterfeit driver’s licenses in bulk from a Singapore-based “carder” website. So-called “carders” are people who buy, sell, and trade online the credit card data stolen from phishing sites or from large data breaches at retail stores. The stolen identities were then used to fraudulently purchase vehicles from U.S.-based car dealerships. In all, the defendants purchased scores of vehicles valued at almost a half a million dollars prior to the discovery of their scheme.
According to documents filed in court, co-defendant Henry Addo allegedly ran this international car theft ring from his home in Ghana. From various locations in Ghana, Addo placed international phone calls to car dealerships in the United States. During these call, he assumed the identity of the stolen credit card holders during the negotiation of each purchase, the indictment said. He then allegedly used a series of email accounts to transmit the counterfeit driver’s licenses and stolen credit card information to United States-based car dealerships.
According to the indictment, Addo motivated his United States-based co-conspirators to participate in the conspiracy by invoking “Sakawa,” which is a Ghanaian practice that combines modern internet-based fraud practices targeting foreigners with traditional African religious rituals.
Defendants paid for the cars using the stolen credit cards and (using the same stolen credit cards) paid automobile transportation companies to deliver the vehicles to various staging locations throughout the United States. Once multiple vehicles were accumulated at a particular staging location, a tractor trailer transported them in cargo containers to a New Jersey port for export to Africa, where the cars were then sold on the open market.
“This case is notable in terms of its level of sophistication, its audacious methods and the callous disregard for victims,” said U.S. Attorney Laura Duffy.” These guilty pleas are the first strike back on behalf of identity theft victims who now have to reclaim their good names – a frustrating task that can take years. We will continue to make these cases a priority.”
The FBI recommends that individuals take the following steps to minimize the chance of becoming a victim of identity theft:
- Don’t carry your Social Security card or any document containing your Social Security Number.
- Don’t give a business your Social Security Number just because they ask. Give it only when required.
- Protect your financial information.
- Check your credit report every 12 months.
- Secure personal information in your home.
- Protect your personal computers by using firewalls, anti-spam/virus software, update security patches, and change passwords for Internet accounts.
- Don’t give personal information over the phone, through the mail or on the Internet unless you have initiated the contact or you are sure you know who you are dealing with.
Co-defendant Addo remains a fugitive and is believed to be residing in Africa.
DEFENDANT Edmund Seshie, aka Eddie Blay Age: 42 Columbus, Ohio Abdul Rezak Shaib, aka Zak Age: 28 Bronx, New York CHARGESConspiracy to Commit Mail and Wire Fraud – Title 18, U.S.C., Section 1349
Maximum penalty: 20 years’ imprisonment and $250,000 fine INVESTIGATING AGENCYFederal Bureau of Investigation
*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.
Three Time Robber of Trucks Carrying Pharmaceuticals Exiled to 25 Years in PrisonRead the Press Release
Used Guns, and Caused Serious Injury to One Truck Driver;
Attempted to Rob a Fourth Truck
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Robert Neil Sampson, age 53, of Lanham, Maryland, today to 25 years in prison followed by three years of supervised release for conspiring to commit robbery, robbery and using a firearm during a robbery.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Douglas A. Middleton, Chief of the Henrico County (Virginia) Police Division.
According to his plea agreement, Sampson and others committed three armed robberies in 2012 of two courier companies, Accurate Courier Express (ACE) and The Courier Connection (TCC), and attempted a fourth robbery. Both companies had contracts with AmerisourceBergen Corporation (ABC) to transport pharmaceuticals from Glen Allen, Virginia to Landover, Maryland, and from Landover to other locations in Maryland and the Washington D.C. metropolitan area.
On May 29, 2012, an ACE driver transported an ABC shipment of pharmaceuticals from Glen Allen to Landover. After the driver backed the tractor trailer up to the cargo door of the facility, Sampson and a co-conspirator pulled up in a motor vehicle. The co-conspirator pointed a handgun at the driver and ordered him into the tractor cab. Sampson then entered the tractor cab. The driver was ordered into the sleeper portion of the tractor cab and told to put a pillow case over his head. The driver refused. Sampson and the co-conspirator threatened to shoot him, but then allowed the driver to run away. A short time later, Prince George’s County Police Department patrol units located the tractor trailer on Nicole Drive in Lanham. A subsequent inventory revealed that pharmaceuticals had been stolen.
On July 13th, as an ACE driver was driving a shipment of pharmaceuticals out of ABC’s distribution center in Glen Allen, Sampson and a group of co-conspirators used a number of vehicles to block the delivery truck approximately 300 feet from the front gate. Several co-conspirators, armed with handguns, removed the ACE driver from the cab of the vehicle, wounded the driver with a taser gun, zip-tied the driver’s hands and feet and rolled him down a steep embankment. The co-conspirators then drove off with the truck. Investigators later found the truck abandoned near the crime scene. Pharmaceuticals were missing. The driver of the truck sustained serious bodily injuries and was treated at a local hospital; he suffers from protracted impairment of the use of his hands.
On August 14, two ACE drivers were driving along 75th Avenue in Hyattsville, Maryland, to deliver a shipment of pharmaceuticals on behalf of ABC. Sampson and a co-conspirator suddenly blocked their path with a van. The co-conspirator leaped onto the running board of the passenger side of one of the trucks and attempted to force his way into the truck. The truck continued to travel down the street and the co-conspirator jumped off the truck. Sampson, who was wearing a hard hat, approached the driver’s side of the other truck, brandished a handgun, and attempted to get into the truck. Sampson was eventually thrown off the truck. Sampson’s DNA was found on a hard hat recovered from the scene. Sampson was treated for a wound at a hospital in Baltimore the next morning.
On August 31, an employee was moving a truck inside the TCC warehouse located in Hyattsville, when Sampson, who was wearing an orange construction vest, and two co-conspirators entered the warehouse. At least one of the three men produced a handgun and ordered the TCC driver out of the truck. The TCC driver complied and ran out of the facility. Sampson was later identified in security camera footage of the robbery.
A search warrant was executed in September of 2012 at Sampson’s residence, and law enforcement recovered some of the stolen pharmaceuticals, zip ties and an orange construction vest.
The total amount of loss from the robberies was between $250,000 and $400,000.
United States Attorney Rod J. Rosenstein commended the FDA – Office of Criminal Investigations; Richmond, Virginia and Washington, D.C. offices of the DEA; the Henrico County (Virginia) Police Division; and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Arun G. Rao and Mara Zusman Greenberg, who prosecuted the case.
Texas Woman Pleads Guilty in Federal Adoption Fraud Case in KansasRead the Press Release
KANSAS CITY, KAN. – A Texas woman pleaded guilty Wednesday to defrauding four families that wanted to adopt children, U.S. Attorney Barry Grissom
Chrystal Marie Rippey, 34, Marshall, Texas, pleaded guilty to one count of wire fraud. In her plea, she admitted she devised a scheme in which she pretended to be pregnant. She contacted adoption agencies and individuals who wanted to adopt and said she was willing to give up her unborn children for adoption. She asked adoption agencies and individuals for money for rent, utilities, food and living expenses.
Couple No. 1: A Delaware couple moved Rippey into their home for a month. They took her on a two-week vacation on the beach and paid for her living expenses, new clothes, cell phone and food. She gave them a sonogram that she claimed showed her pregnancy with twins. In fact, she got the image from the Internet. Then she broke off contact with them.
Couple No. 2: A couple from Shawnee, Kan., put more than $22,000 in an escrow account to pay for Rippey’s living expenses. She told them false stories about her troubles with Child Protective Services and a fire that burned down the home of the birth father in order to get the couple to give her more money. Then she broke off contact with them.
Couple 3: Working with an adoption agency in Overland Park, Kan., Rippey contacted another couple that began providing support for her. They were shocked when they went to California to meet her and saw that she didn’t look pregnant.Couple 4: Another couple ran up expenses for fees to an adoption agency in Texas as well as travel expenses in hopes of adopting twins from Rippey. Rippey claimed she had a son in the hospital and that she had not eaten in days in order to get money from the couple. But the couple refused her request because the adoption agency told them not to give her any money until she completed adoption paperwork.
Sentencing will be set for a later date. Both parties have agreed to recommend a sentence of 33 months followed by three years supervised release.
Grissom commended the Overland Park Police Department, the U.S. Secret Service and Assistant U.S. Attorney Chris Oakley for their work on the case.
Texas Man Pleads Guilty to Traveling to Missouri for Illicit Sex with Two ChildrenRead the Press Release
Human Trafficking Rescue Project
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Texas man pleaded guilty in federal court today to traveling to Missouri to engage in sex with two minor sisters whose “father” (actually an undercover police detective) he met online.
John Paul Christian, 41, of San Marcos, Texas, pleaded guilty before U.S. District Judge Dean Whipple to two counts of attempting to entice a minor to engage in sexual activity and to one count of traveling across state lines to engage in illicit sexual conduct.
According to court documents, Christian communicated through an online social media site with a man he believed to be the father of two minor females, ages 11 and 15, on Feb. 19, 2014. The father was actually an undercover Kansas City, Mo., Police Department detective.
Christian called the undercover detective on his cell phone to discuss his interest in having sex with the girls, and sent e-mail and text messages to the undercover detective to arrange a meeting to further discuss this opportunity to have sex with his children. On Feb. 26, 2014, Christian sent a text to the undercover detective stating that he wanted to have sex with the 11-year-old girl first and describing all of the sex acts he desired to perform on and with her. On Feb. 28, 2014, Christian sent a $200 Money Gram to the undercover detective as partial payment of the $400 agreed price for sex with the girls.
On March 1, 2014, Christian traveled from Texas to Missouri, to a location where he believed the man and his daughters lived, with the intent to have sex with the girls as previously arranged. Christian arrived in a taxi at about 8:10 p.m. and was arrested as he got out of the taxi.
When he was taken into custody, Christian was in possession of two bags. According to court documents, one of the bags contained a “Hello Kitty” backpack doll, two “Hello Kitty” underwear outfits for young girls, two pairs of young girls’ panties, two cans of Red Bull, rope necklaces, Q-Tips and a teal iPod Nano with headphones. The other bag contained an Acer Chromebook laptop computer with power cables, a Samsung flip phone, and a bottle of Astroglide lubricant.
When officers searched Christian’s hotel room, according to court documents, they found a notebook with what appears to be a letter written to the 15-year-old daughter. The letter details the various sex acts that Christian was going to be engaged in with the sisters. Christian wrote that he wanted to get the 15-year-old girl pregnant so that they could have a “little baby girl together” that they in turn would sexually molest.
Under federal statutes, Christian is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole, on each of the two enticement charges. Christian is also subject to a sentence of up to 30 years in federal prison without parole on the travel charge. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the Kansas City, Mo., Police Department in conjunction with the Human Trafficking Rescue Project.
Tax Scheme Nets 32 Month Prison Sentence for Philadelphia ManRead the Press Release
PHILADELPHIA - Steven Young, 32, of Philadelphia, PA, was sentenced today to 32 months in prison for his role in a tax fraud conspiracy. Young pleaded guilty on May 13, 2014 to one count of conspiracy and six counts of aiding and assisting in the preparation of fraudulent federal income tax returns. Young was providing personal identifying information to his co-conspirators for use in creating and filing fraudulent income tax returns. Young was charged with Tanita Chapman who pleaded guilty to 23 counts of preparing and filing of false and fraudulent federal income tax returns, as well as conspiracy, and is awaiting sentencing. In addition to the prison term, U.S. District Court Judge J. Curtis Joyner ordered restitution to the IRS in the amount of $42,889, three years of supervised release and a $700 special assessment.
According to court documents, Young’s then-girlfriend, Wendy Vandyke, charged separately, was friends with Chapman. In 2009, Chapman prepared federal income tax returns for Vandyke and others. In many of these returns, although not in the one that she prepared for Vandyke, Chapman filed an accompanying form 5405 in which she unlawfully claimed the First Time Home Buyer’s Credit (“FTHBC”) for individuals whom she knew were not eligible to receive it. To this end, Vandyke provided to Chapman identifiers of individuals whom Vandyke and Chapman knew were ineligible to receive the FTHBC, in order for Chapman to prepare returns unlawfully claiming the FTHBC. Vandyke received these identifiers from Young who was incarcerated at the time at a State Correctional Institution. Young obtained these identifiers from inmates with whom he was incarcerated and, in exchange for their identifiers, Young arranged for each inmate to receive a portion of the FTHBC that was fraudulently claimed on that inmate’s behalf. However, the larger portions of the fraudulently received credits were split between Vandyke/Young (as a unit) and Chapman. Ultimately, as a result of the scheme, $42,889 in FTHBCs were fraudulently claimed in tax returns prepared by Chapman, ostensibly for six inmates. The government issued refunds for this same amount.
The case was investigated by Internal Revenue Service Criminal Investigations and is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Springfield Man Sentenced to 24 Years in Prison for Child ExploitationRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was sentenced in federal court today for the sexual exploitation of a minor.
Ezra Robert Gramm, 40, of Springfield, was sentenced by U.S. Chief District Judge Greg Kays to 24 years and five months in federal prison without parole, followed by lifetime supervised release. The court ordered the federal sentence to be served consecutively to a state sentence of 18 years for the attempted enticement of a child in Greene County, Mo.
Gramm, who pleaded guilty on May 13, 2013, admitted that he made contact with the 13-year-old victim, identified as “Jane Doe,” via an Internet chat room in late 2009. Gramm and the child victim engaged in online chat sessions and exchanged text messages with one another. During the course of this interaction, Gramm asked Jane Doe to take sexually explicit photographs of herself and transmit the photographs to him. Jane Doe complied with his request.
Gramm’s cell phone was seized by law enforcement officers and found to contain multiple images of Jane Doe engaged in sexually explicit conduct. Jane Doe was interviewed and acknowledged taking the digital images of herself and transmitting them to Gramm at his request.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Springfield Man Pleads Guilty to $6.7 Million K2 Distribution ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man pleaded guilty in federal court today to a $6.7 million scheme that involved the distribution of approximately 2.2 kilograms of synthetic cannabinoids, commonly referred to as K2.
Brandon D. Franklin, 28, of Springfield, pleaded guilty before U.S. District Judge M. Douglas Harpool to conspiracy to commit mail fraud and to conspiracy to commit money laundering.
Franklin admitted that he engaged in a mail fraud scheme by selling and shipping (via FedEx) Kryp2nite products, which were falsely labeled as “incense” and “not for human consumption,” but in reality are intended for human consumption as a drug. He manufactured and distributed K2 to retail outlets in Springfield, Joplin and elsewhere through his Springfield business, ThirdEye.
Between Oct. 29, 2009, and Nov. 6, 2012, Franklin deposited $6,760,041 in proceeds from the distribution of synthetic cannabinoids into his bank accounts. Based upon a review of invoices seized during the investigation, Franklin charged approximately $3 per gram of synthetic cannabinoid. Therefore, Franklin distributed approximately 2,253 kilograms of synthetic cannabinoids.
Franklin also admitted to his role in a money laundering conspiracy related to conducting financial transactions involving the proceeds of unlawful activity, which were designed to conceal or disguise the nature, location, source, ownership and control of the proceeds.
Franklin must forfeit to the government any property derived from the proceeds of the offenses, including a money judgment of $6,760,041; real estate in Springfield, Mo., Rogersville, Mo., Springfield, Ore., and Redding, Calif.; the funds contained in several bank accounts totaling more than $535,000; and investment funds totaling $267,632.
Under federal statutes, Franklin is subject to a sentence of up to 40 years in federal prison without parole, plus a fine up to $750,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Today’s conviction is the result of a large-scale investigation by local, state and federal law enforcement agencies into the distribution of K2, the slang term for synthetic cannabinoid products. K2 is a mixture of plant material that has been sprayed or mixed with a synthetic chemical compound similar to THC (tetrahydrocannabinol), the psychoactive ingredient in marijuana. K2 products are often labeled as “incense,” but in reality are intended for human consumption as a drug.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Drug Enforcement Administration, the FDA Office of Criminal Investigations, IRS-Criminal Investigation, the Jasper County Drug Task Force, the Jasper County, Mo., Sheriff’s Department, the Joplin, Mo., Police Department, the Webb City, Mo., Police Department, the South Central Drug Task Force, the Missouri State Highway Patrol, the Springfield, Mo., Police Department, the Newton County, Mo., Sheriff’s Department and the Greene County, Mo., Prosecuting Attorney’s Office.Soldier at Ft. Riley Sentenced for False Statements to Social Security AdministrationRead the Press Release
KANSAS CITY, KAN. – A soldier at Ft. Riley was sentenced Wednesday for making false material statements to the Social Security Administration, U.S. Attorney Barry Grissom said.
James Scott Nickerson, 38, Ft. Riley, Kan., was sentenced to six months in prison followed by six months home confinement and three years of supervised release. He also was ordered to pay $71,734 in restitution to the SSA and an additional $250 to the United States Treasury for a stimulus payment he was not entitled to receive.
Nickerson pleaded guilty to one count of making a false official statement to a federal agency. In his plea, he admitted he was paid a total of $71,734 in disability benefits by the Social Security Administration that he was not eligible to receive. Beginning in October 2009, Nickerson applied for disability benefits under the Wounded Warrior Program. He claimed he was unable to work because of “organic mental disorders” he developed while serving a deployment in Iraq.
While receiving disability benefits, he worked full time for the Army doing various duties, including serving as a platoon sergeant while he claimed to be disabled. He also supervised other soldiers during this period. Nickerson attempted to conceal his actual work activity from SSA by claiming he worked no more than 20 hours a week. On three separate occasions, the defendant completed Work Activity Reports, documents used by SSA to determine if a beneficiary is eligible for disability benefits. On each of these occasions he was asked to identify his supervisors so that SSA could verify his work activity. On all three occasions, he identified persons other than his supervisors. In the plea agreement, the defendant admitted that on a Work Activity Report he completed on Sept. 6, 2010, he falsely reported to SSA that one of his subordinates was his supervisor. He admitted that this was a false material statement to a federal agency.Grissom commended the Office of the Inspector General for the Social Security Administration and Special Assistant U.S. Attorney Trey Alford for their work on the case.
- Six Area Residents Arrested in Straw Purchasing Scheme
Shiprock Man Sentenced to Eight Years for Federal Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Gilbert Yazzie, 45, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced this morning to eight years in federal prison followed by 15 years of supervised release for his aggravated child sexual abuse conviction. Yazzie will be required to register as a sex offender after he completes his prison sentence.
Yazzie was arrested in June 2013, on a criminal complaint alleging that he engaged in a sexual act with a Navajo child under the age of 12 years. According to court filings, Yazzie sexually abused the child victim on June 15, 2013, in a residence in Shiprock, which is within the Navajo Indian Reservation. On June 19, 2014, Yazzie pled guilty to a felony information charging him with sexually abusing a child and admitted that on June 15, 2013, he engaged in a sexual act with the child victim.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorneys Novaline D. Wilson and Glynette R. Carson McNabb.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 http://www.justice.gov/psc/.
Second Colombian National Pleads Guilty to Kidnapping and Murder 0f DEA Agent Terry WatsonRead the Press Release
WASHINGTON – A second Colombian man extradited to the Eastern District of Virginia pleaded guilty today for his involvement in the kidnapping and murder of Drug Enforcement Administration (DEA) Special Agent James Terry Watson in Bogotà, Colombia, on June 20, 2013.
Attorney General Eric H. Holder, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, DEA Administrator Michele M. Leonhart and Director Bill A. Miller of the State Department’s Diplomatic Security Service (DSS) made the announcement.
“Throughout his law enforcement career, Special Agent Watson’s service was both selfless and courageous,” said Attorney General Holder. “With this action, we continue our work to hold accountable those who were responsible for his murder. In the weeks ahead, we expect to take additional steps to bring the perpetrators to justice. And in all that we do, our nation's Department of Justice will continue to honor Special Agent Watson’s sacrifice, to safeguard the nation he served, and to protect the values and principles he defended all his life.”
“DEA will never forget the sacrifice of Special Agent Terry Watson, nor will we rest until those responsible for his kidnapping and murder are brought to justice for this horrific act,” said DEA Administrator Leonhart. “While this is certainly not the final step, we are pleased that another criminal facilitator in this awful tragedy is answering for his actions in a U.S. courtroom.”
Andrés Álvaro Oviedo García, 22, pleaded guilty before U.S. District Judge Gerald Bruce Lee of the Eastern District of Virginia to aiding and abetting the murder of an internationally protected person and conspiracy to kidnap an internationally protected person. Sentencing is scheduled for Dec. 12, 2014.
In a statement of facts filed with the plea agreement, Oviedo García admitted that he and his conspirators agreed to conduct a “paseo milionario” or “millionaire’s ride” in which victims who were perceived as wealthy were lured into taxi cabs, kidnapped and then robbed. Oviedo García admitted that he was part of the group of individuals that targeted Special Agent Watson, but his taxi encountered mechanical issues. Oviedo García remained with the disabled taxi while the other conspirators continued with the group’s plan to conduct the “millionaire’s ride” robberies. Shortly thereafter, Special Agent Watson was targeted and picked up in a taxi outside a restaurant in Bogotà. Soon after, two conspirators entered the taxi carrying Special Agent Watson, and one used a stun gun to shock Special Agent Watson and the other stabbed him. Special Agent Watson was able to escape from the taxi, but he later collapsed and died from his injuries.
Six other defendants were charged in this case for their alleged involvement in the murder of Special Agent Watson. Gerardo Figueroa Sepúlveda, 39; Omar Fabiàn Valdes Gualtero, 27; Édgar Javier Bello Murillo, 27; and Héctor Leonardo López, 34, are each charged by indictment with second degree murder, kidnapping and conspiracy to kidnap. Wilson Daniel Peralta Bocachica, 31, was charged for his alleged efforts to destroy evidence associated with the murder of Special Agent Watson.
On Sept. 3, 2014, Julio Estiven Gracia Ramírez, 31, pleaded guilty to aiding and abetting the murder of an internationally protected person and conspiracy to kidnap an internationally protected person. Sentencing for Gracia Ramírez is scheduled for Dec. 5, 2014. Trial for the remaining defendants is set for Jan. 12, 2015.
The charges in the indictment against the other defendants are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case was investigated by the FBI, DEA and DSS, in close cooperation with Colombian authorities and with assistance from INTERPOL and the Justice Department’s Office of International Affairs. The case is being prosecuted by Special Counsel Stacey Luck of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Michael P. Ben’Ary of the U.S. Attorney’s Office for the Eastern District of Virginia.
The Department of Justice gratefully acknowledges the Colombian Attorney General’s Office, Colombian National Police, Colombian Directorate of Criminal Investigation and Interpol (DIJIN), DIJIN Special Investigative Unit, Bogotà Metropolitan Police, Bogotà Police Intelligence Body (CIPOL) Unit and Colombian Technical Investigation Team for their extraordinary efforts, support and professionalism in responding to this incident.
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Saxtons River Teacher Sentenced to Prison for Child Exploitation OffensesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Brant Nelson, 49, of Saxtons River, Vermont, was sentenced on September 15, 2014, in United States District Court in Burlington, Vermont, to serve 360-months (30 years) imprisonment and a lifetime period of supervised release following his conviction on six counts of production of child pornography, in violation of 18 U.S.C. § 2251, one count of possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B), one count of interstate travel to engage in sexual act with a minor, in violation of 18 U.S.C. § 2241(c), and one count of interstate transportation of a minor for sexual activity, in violation of 18 U.S.C. § 2423(a). Chief Judge Christina Reiss also ordered Nelson to pay a $900 special assessment.
According to court records and proceedings, in early January 2012, Nelson was living in Saxtons River, Vermont when the Vermont State Police (VSP) received a report that he possibly had images of child pornography on his computer and that he had a sexual interest in very young girls. VSP troopers interviewed Nelson, who confirmed that he had child pornography on his computer at his residence. Nelson added that he encrypted the computer, but he gave the troopers consent to take his computer and various passwords to defeat the encryption. The troopers retrieved Nelson=s computer and delivered it to a forensic examiner with the Vermont Internet Crimes against Children (ICAC) Task Force. The troopers gave Nelson a citation to appear in court at a later date.
Within days thereafter, Nelson went to a public computer and caused email accounts he had used to be closed and the contents deleted. Nelson also warned other offenders with whom he had been sharing images of child pornography to destroy their computers.
Nelson was interviewed by a VSP detective and a Special Agent with the Department of Homeland Security, Homeland Security Investigations (HSI), on January 20, 2012. Nelson admitted to having child pornography on his computer, to engaging in sexual contact with a young girl, to taking pornographic pictures of his child victims and posting them to the Internet, to sharing with other pedophiles images of child pornography that he had produced, and to accessing a website on the Internet where pedophiles congregate. Nelson’s admissions were confirmed by the forensic exam of his computer, where images of child pornography that he produced and possessed were found. Nelson was taken into federal custody. On February 2, 2012, he was indicted on one count of production of child pornography. The production of child pornography count carries a 15-year mandatory minimum sentence, with a 30-year statutory maximum sentence.
Through an unrelated investigation conducted by the FBI in New York State, images of child pornography that depicted Nelson and his child victims were found in the collection of another offender. On April 12, 2012, a grand jury returned a First Superseding Indictment against Nelson, which charged him with a total of six counts of production of child pornography, and one count of possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B).
On June 17, 2013, Nelson pleaded guilty to all counts of the First Superseding Indictment.
The investigation into Nelson’s activities continued and resulted in his guilty plea to a two-count Information on March 24, 2014. The Information charged him with interstate travel to engage in a sexual act with a minor (Count One), and one count of interstate transportation of a minor for sexual activity (Count Two). Count One subjected Nelson to a 30-year mandatory minimum sentence, with a statutory maximum sentence of life. Count Two subjected Nelson to a 10-year mandatory minimum sentence, with a statutory maximum sentence of life. The facts which supported Nelson’s guilty plea to the two charges in the Information are the following:
In approximately 2008, Nelson began accessing a website on the Internet where adults who have a sexual interest in little girls congregate. While using this website, Nelson met and began communicating with a man who lived in the state of New York (“Offender #1”). Nelson and Offender #1 communicated via email about their shared sexual interest in little girls and their shared interest in child pornography. Nelson also traveled to New York to visit Offender #1. In approximately March 2010, Nelson took Minor A and Minor B to New York City so they could meet Offender #1. At the time of this trip, Nelson was, had been, and would continue to engage in regular sexual activity with both Minor A and Minor B. Nelson knew that Minor A and Minor B were both under the age of 12 years old in 2010.
In approximately July 2010, Nelson took Minor A and Minor B from Vermont to New York City to see Offender #1 again. While traveling to New York City, Nelson told Minor A that Offender #1 wanted to have sexual contact with Minor A. While in New York City, Offender #1 engaged in sexual activity with Minor A, and Nelson engaged in sexual activity with Minor B.
In approximately November 2010, Nelson took Minor A and Minor B from Vermont to New York City, New York to see Offender #1 again. Prior to the trip, Nelson discussed with Minor A and Minor B that Offender #1 wanted to engage in sexual activity with both of them. Nelson also intended to engage in sexual activity with Minor A and/or Minor B during this trip. Nelson and Offender #1 both engaged in sexual activity with Minor A and Minor B while in New York City.
In sentencing Nelson, Judge Reiss rejected the government’s request that he receive a lifetime term of imprisonment, called for under the advisory federal sentencing guidelines, and sentenced him instead to 30-years imprisonment, the statutory mandatory minimum sentence. At the sentencing hearing, Judge Reiss said that Nelson’s criminal conduct was the worst she had ever seen in her years as a state and federal judge.United States Attorney Coffin said: “Nelson’s conduct was horrific and among the worst ever prosecuted by this Office. We are grateful for the tremendous investigative support provided to us by the Vermont State Police, the Department of Homeland Security, Homeland Security Investigations, the Federal Bureau of Investigation, and the Vermont Internet Crimes against Children Task. The protection of children is a priority of this Office and we will prosecute offenders such as Nelson to the fullest extent of the law.”
HSI Special Agent in Charge Bruce Foucart said: “Child sexual exploitation crimes are appalling and made even more disturbing when they are carried out by individuals in positions of trust who have ready access to innocent children. The aggressive investigation and ultimate prosecution of those engaged in this type of depraved activity remains among our highest priorities at HSI.”
The prosecution of Nelson was handled by Assistant U.S. Attorney Barbara A. Masterson. Nelson was represented by Assistant Federal Public Defender David L. McColgin.
U.S. Attorney Coffin noted that this prosecution is part of the U.S. Department of Justice=s Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney=s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Sallisaw Man Charged with Multiple Counts of Wire Fraud, Identity Theft and CounterfeitingRead the Press Release
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable”
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that CHRISTOPHER JACOB FROEHLICH, age 28, of Sallisaw, Oklahoma was arraigned in federal court today.
The defendant has been charged with six counts of Wire Fraud, in violation of Title 18, United States Code, Section 1343, punishable by up to 20 years imprisonment and/or up to a $250,000.00 fine; six counts of Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A(a)(1), punishable by 2 years imprisonment consecutive to any other sentence imposed and/or up to a $250,000.00 fine; and two counts of Uttering A Counterfeit Security With Intent To Deceive, in violation of Title 18, United States Code, Section 513(a), punishable by up to 10 years imprisonment and/or up to a $250,000.00 fine.
The Indictment filed on September 10, 2014, alleges that from December 25, 2013 to March 30, 2014 the defendant devised and intended to devise a scheme to defraud various individuals and financial institutions. The defendant used fraudulently obtained personal identification information to create false online accounts at financial institutions. The defendant also uttered counterfeit checks for mobile deposit intending to defraud.
The charges arose from an investigation by the United States Postal Service and the United States Secret Service.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant was remanded into the custody of the United States Marshal Service.
Assistant United States Attorney Chris Wilson represented the United States.
Ranson Resident Indicted on Crack Cocaine ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFederal Grand Jury also returns two additional indictments
MARTINSBURG, WV – United States Attorney William J. Ihlenfeld, II, announced that an investigation by the Eastern Panhandle Drug and Violent Crime Task Force has led to a federal indictment being returned.
Armistead William CRAIG a/k/a “Armstead William Craig,” a/k/a “Manny,” a/k/a “MANNY MOO,” 35, of Ranson, West Virginia, was named in a one-count Indictment charging him with “Distribution of Crack Cocaine.” CRAIG, who is currently in federal custody serving a revocation of his supervised release, faces up to 20 years in prison on this charge. This case will be prosecuted by Assistant U.S. Attorney Jarod J. Douglas.
In two separate cases:
Victor HERRERA, 48, an inmate at USP Hazelton, was named in a two-count Indictment charging him with “Conspiracy to Commit Assault with a Dangerous Weapon with Intent to do Bodily Harm” and “Assault with a Dangerous Weapon with Intent to do Bodily Harm.” HERRERA faces up to five years in prison on the conspiracy charge and ten years in prison on the assault charge. This case was investigated by the Special Investigative Services Unit at USP Hazelton.
Julio Ruiz-De Los SANTOS, 26, of Morgantown, West Virginia, was named in a one-count Indictment charging him with “Re-Entry of Removed Alien.” The Indictment alleges that SANTOS was found in the United States after having previously been deported and had not obtained the consent of the Attorney General for admission into the United States. SANTOS faces up to two years in prison. This case was investigated by US Immigration and Customs Enforcement, Homeland Security Investigations (ICE/HSI).
The HERRERA and SANTOS cases will be prosecuted by Assistant U.S. Attorney Shawn A. Morgan.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Prior Sex Offender Sentenced to 10 Years in Prison for Possessing Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Austin Portner, age 55, of Hagerstown, Maryland, today to 10 years in prison followed by 20 years of supervised release for possessing child pornography and of having a prior sex offense conviction. Judge Bennett ordered that upon his release from prison, Portner must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Colonel Marcus L. Brown, Superintendent of the Maryland State Police.
According to his plea agreement, on November 14, 2002, Portner was convicted of second and third degree sex offenses in Washington County, Maryland for having sexual contact with a 10 year-old victim. He was released from prison in 2009. Portner was employed in Pennsylvania.
In August of 2012, Maryland State Police discovered multiple handwritten letters between Portner and an individual who was incarcerated at the Maryland Correctional Institute in Hagerstown for sexual offenses involving children. Portner referred to the inmate in his letters as “Big Brother.” The mailings contained sketches of young children portrayed in lascivious manner with attending captions describing sexual contact with men, and references to the predation of children. Portner also explained that he had found a computer and that he was visiting websites for child pornography. One of the letters contained a photo of two young girls whom Portner stated were located in Pennsylvania.
When asked about the letters, Portner stated that he met “Big Brother” while he was in prison and that they shared a mutual interest in sex with children. Portner looked forward to the inmate’s release from prison so that he could learn how to attract young children. Portner stated that after his release from prison, he had viewed child pornography roughly one to three times a week from his residence on a netbook computer that linked to the WiFi network of a nearby coffee shop. Portner initially stated that he had destroyed the computer and that he no longer owned or had access to a computer, but later acknowledged owning a computer.On February 11, 2013, law enforcement recovered a laptop computer from Portner’s residence, as well as additional letters between Portner and his “Big Brother.” The computer contained more than 200 images of visual depictions of minors engaging in sexually explicit conduct. Some of the images included photos of young children and infants who are bound or restrained and subjected to physical and sexual abuse.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Mark W. Crooks, who prosecuted the case.
Press AdvisoryRead the Press Release
Saint Lawrence County kidnapping case
SYRACUSE, NEW YORK – United States Attorney Richard S. Hartunian will conduct a press conference on Thursday, Sept. 18th at 11:30 AM, in the U.S. Attorney’s Office, 9th floor, 100 S. Clinton Street, Syracuse, NY.
No further information will be provided prior to the press conference.
Pennsylvania Man Pleads Guilty in Conspiracy to Illegally Export Restricted Laboratory Equipment to SyriaRead the Press Release
U.S. Attorney Peter Smith for the Middle District of Pennsylvania, Special Agent in Charge John Kelleghan for Philadelphia, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Special Agent in Charge Sidney M. Simon of the New York Field Office, Office of Export Enforcement, U.S. Department of Commerce announced that yesterday Harold Rinko, 72, of Hallstead, Pennsylvania, appeared before Senior District Court Judge Edwin M. Kosik in Scranton and pleaded guilty to conspiracy to illegally export laboratory equipment, including items used to detect chemical warfare agents, from the United States to Syria, in violation of federal law.
During the guilty plea hearing, Rinko admitted that he conspired to export items from the United States through third party countries to customers in Syria, without the required U.S. Commerce Department licenses.
According to a factual stipulation signed by Rinko and made part of the record, the conspirators prepared false invoices that undervalued and mislabeled the goods being purchased and also listed false information as to the identity and geographic location of the purchasers of the goods. The stipulation indicates that the items would be shipped from the United States to Jordan, the United Arab Emirates, and the United Kingdom, and thereafter transshipped to Syria.
“HSI will use all resources at its disposal to prevent sensitive and restricted technology from being exported to Syria though the black market,” said Special Agent in Charge Kelleghan. “No good comes of illegal exports to Syria during this time of gross misgovernment and civil strife, and HSI will do all in its power as the principal enforcer of export controls to ensure that sensitive technology doesn’t fall into the wrong hands in Syria. I applaud our colleagues at the Department of Commerce, along with our law enforcement counterparts in the United Kingdom, who helped us make this complex investigation a success.”
“Today's plea represents the effort of law enforcement agencies working together to make our country safer,” said Simon. “Office of Export Enforcement Special Agents with the U.S. Department of Commerce work tirelessly every day to pursue those who flout our export control laws and attempt to supply anyone with technology that threatens our national security. We will seek and arrest violators wherever located, worldwide, and we will continue to leverage our unique authorities as the only federal law enforcement agency exclusively dedicated to enforcing dual-use export violations.”
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. Rinko is facing a potential maximum sentence of five years’ imprisonment, a fine of $250,000, and a three-year term of supervised release.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
The case was investigated by the U.S. Immigration and Customs, Homeland Security Investigations (HSI) in partnership with the U.S. Department of Commerce, Office of Export Enforcement and assigned to Assistant U.S. Attorney Todd K. Hinkley and Trial Attorney Mariclaire Rourke with the Department of Justice, National Security Division, Counterespionage Section.
Pennsylvania Man Pleads Guilty in Conspiracy to Illegally Export Restricted Laboratory Equipment to SyriaRead the Press Release
U.S. Attorney Peter Smith for the Middle District of Pennsylvania, Special Agent in Charge John Kelleghan for Philadelphia, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Special Agent in Charge Sidney M. Simon of the New York Field Office, Office of Export Enforcement, U.S. Department of Commerce announced that yesterday Harold Rinko, 72, of Hallstead, Pennsylvania, appeared before Senior District Court Judge Edwin M. Kosik in Scranton and pleaded guilty to conspiracy to illegally export laboratory equipment, including items used to detect chemical warfare agents, from the United States to Syria, in violation of federal law.
During the guilty plea hearing, Rinko admitted that he conspired to export items from the United States through third party countries to customers in Syria, without the required U.S. Commerce Department licenses.
According to a factual stipulation signed by Rinko and made part of the record, the conspirators prepared false invoices that undervalued and mislabeled the goods being purchased and also listed false information as to the identity and geographic location of the purchasers of the goods. The stipulation indicates that the items would be shipped from the United States to Jordan, the United Arab Emirates, and the United Kingdom, and thereafter transshipped to Syria.
“HSI will use all resources at its disposal to prevent sensitive and restricted technology from being exported to Syria though the black market,” said Special Agent in Charge Kelleghan. “No good comes of illegal exports to Syria during this time of gross misgovernment and civil strife, and HSI will do all in its power as the principal enforcer of export controls to ensure that sensitive technology doesn’t fall into the wrong hands in Syria. I applaud our colleagues at the Department of Commerce, along with our law enforcement counterparts in the United Kingdom, who helped us make this complex investigation a success.”
“Today's plea represents the effort of law enforcement agencies working together to make our country safer,” said Simon. “Office of Export Enforcement Special Agents with the U.S. Department of Commerce work tirelessly every day to pursue those who flout our export control laws and attempt to supply anyone with technology that threatens our national security. We will seek and arrest violators wherever located, worldwide, and we will continue to leverage our unique authorities as the only federal law enforcement agency exclusively dedicated to enforcing dual-use export violations.”
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. Rinko is facing a potential maximum sentence of five years’ imprisonment, a fine of $250,000, and a three-year term of supervised release.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
The case was investigated by the U.S. Immigration and Customs, Homeland Security Investigations (HSI) in partnership with the U.S. Department of Commerce, Office of Export Enforcement and assigned to Assistant U.S. Attorney Todd K. Hinkley and Trial Attorney Mariclaire Rourke with the Department of Justice, National Security Division, Counterespionage Section.
****Oxford Business Owner Sentenced to AYear in Prison for Role in Conspiracy ToFile False Tax ReturnsRead the Press Release
A business owner from Oxford was sentenced to a year in prison for filing false tax returns and conspiring to file false tax returns with the Internal Revenue Service, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Jarod Koopman, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation.
U.S. District Judge Arthur J. Tarnow imposed the sentence on Randal Bellestri, 57. Judge Tarnow also ordered Bellestri to pay a fine of $500,000.00.
Bellestri pleaded guilty in June to filing false tax returns and conspiracy to file false tax returns with the IRS. According to court records, his company, Odyssey, Inc. of Lake Orion, produces machine tools for the aviation industry. Between 2000 and 2009, Bellestri had an agreement with an employee at Odyssey regarding the sale of scrap metal left over from Odyssey’s manufacturing operations. Bellestri authorized the employee to serve as a contact with the scrap metal buyer and to collect the proceeds from the sales in cash. The proceeds were then divided between Bellestri and the employee. Bellestri did not claim the cash proceeds from these scrap metal sales as income on his federal income tax returns. Bellestri’s failure to report these cash proceeds for the 2005 through 2008 tax years caused his income to be understated by approximately $2,155,000.
“Every American has a duty to pay their fair share of taxes. The prosecution of Mr. Bellestri, who intentionally concealed income and filed false tax returns, is vital to maintaining public confidence in our tax system,” said Acting Special Agent in Charge Jarod Koopman.
The case was investigated by special agents of the IRS-Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Christopher L. Varner.Owner of Monterey Wine Cellar Sentenced to Prison for Failure to Pay Wine Excise TaxRead the Press Release
SAN JOSE – Brenda Jo Kibbee, was sentenced yesterday to nine months’ imprisonment for intentionally failing to pay Federal excise tax on wine, and ordered to pay $877,126.94 in restitution to the Alcohol and Tobacco Tax and Trade Bureau (TTB), announced United States Attorney Melinda Haag, TTB Assistant Administrator for Field Operations Tom Crone, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
On Dec. 17, 2013, Kibbee pleaded guilty to one count of failing to pay an excise tax on wine. According to the plea agreement, Kibbee owned and operated Monterey Wine Services, a bonded wine cellar located in Monterey County, Calif. For each of the reporting periods from Aug. 1, 2008, through at least May 31, 2009, Monterey Wine Services had taxable removals of wine from its bonded wine cellar, which resulted in a wine excise tax due and owing to TTB. Kibbee failed to pay the excise tax due for each of these periods. In the wine warehousing industry, bonded wine cellars pay wine excise tax on the removal of wine, but then typically pass this cost on to their winery customers. Even though Kibbee did not pay the excise tax due to TTB, she invoiced her customers and received payments from them for the excise taxes. Kibbee agreed that the tax loss resulting from her misconduct was at least $877,126.94.
TTB Assistant Administrator for Field Operations Tom Crone said, “Tax evasion is not a victimless crime. Law abiding businesses rely on us to ensure a level playing field. We take that responsibility seriously.”
Kibbee, 41 of Salinas, Calif., was indicted on Sept. 26, 2012, on 11 counts of failing to pay an excise tax on wine. She pleaded guilty to one count.
The sentence was handed down by the Honorable D. Lowell Jensen, United States District Court Judge, in San Jose. Judge Jensen also sentenced Kibbee to a three-year term of supervised release. Kibbee was ordered to surrender on December 16, 2014.
Matthew J. Kluge, Trial Attorney with the United States Department of Justice, and Thomas Moore, Assistant United States Attorney for the Northern District of California, are prosecuting the case. The prosecution is the result of an investigation by the TTB, and the IRS, Criminal Investigation.
(Kibbee indictment )
New York Man Involved in Israeli Counterfeiting Ring Pleads GuiltyRead the Press Release
ALEXANDRIA, Va. – Johnny Elegante Lee, 45, of Roosevelt, New York, who was one of 13 alleged members of a criminal counterfeiting operation that manufactured, produced and distributed millions of dollars up and down the eastern United States, pleaded guilty yesterday to participating in a racketeering conspiracy.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Kathy Michalko, U.S. Secret Service Special Agent in Charge, Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Liam O’Grady.
Lee was indicted on Aug. 7, 2014, by a federal grand jury. In a statement of facts filed with his plea agreement, Lee admitted that from 2004 through his arrest in June 2014, he was a member of a criminal enterprise that manufactured, produced, distributed and uttered millions of high-quality counterfeit $100 Federal Reserve Notes that were manufactured in Israel and the United States. The counterfeit U.S. currency was printed on off-set printing presses and sold to dealers such as Lee, and then uttered at retail establishments throughout the eastern United States, resulting in loss to merchants and individuals who provided goods and services in exchange for counterfeit $100 bills. Lee also admitted that his previous counterfeiting conviction in Richmond, Virginia in 2004 was part of his participation in this enterprise.
He faces a maximum penalty of 20 years in prison when he is sentenced on January 9, 2015. The maximum statutory sentences outlined above are prescribed by Congress and are provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case was investigated by the United States Secret Service. Assistant United States Attorneys Kimberly R. Pedersen and Gordon L. Kromberg are 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 No. 1:14-cr-00206.
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New Jersey Bank Officer Sentenced to Two Years in Prison for BriberyRead the Press Release
PHILADELPHIA - Michael Ghabrial, 60, of Martinsville, New Jersey was sentenced today to two years in prison for agreeing to accept bribes as an officer of a bank. Ghabrial pleaded guilty on October 31, 2013 to one count of bank bribery.
Ghabrial was Senior Vice President and Director of Real Estate for Valley National Bank (“VNB”), headquartered in Wayne, New Jersey. In that position, Ghabrial handled the sale of numerous bank properties. Ghabrial solicited and accepted a $7,500 bribe in exchange for agreeing to sell real estate property owned by VNB at favorable terms. In total, Ghabrial solicited and agreed to accept over $120,000 in bribes in exchange for the sale of VNB properties.
In addition to the two-year prison term, U.S. District Court Judge J. Curtis Joyner ordered a fine of $10,000, two years of supervised release, a $100 special assessment, and restitution of $7,500.
The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Vineet Gauri.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525New Haven Man Sentenced to 37 Months in Federal Prison for Illegally Possessing Loaded FirearmRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that TYISHOUN MATHENEY, 20, of New Haven, was sentenced today by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 37 months of imprisonment, followed by three years of supervised release, for being a convicted felon in possession of a loaded firearm.
According to court documents and statements made in court, on April 17, 2013, MATHENEY possessed a stolen semi-automatic pistol loaded with seven bullets in the magazine. MATHENEY was a member of the Grape Street Crips and claimed that he possessed the firearm for protection against members of a rival gang. The investigation also revealed that MATHENEY was involved in the distribution of crack cocaine.
MATHENEY was previously convicted of a state burglary offense and, on October 17, 2012, was sentenced to five years of incarceration, 18 months to serve, and three years of probation. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On August 20, 2013, MATHENEY waived his right to indictment and pleaded guilty to one count of possession of a firearm by a previously convicted felon.
This matter was investigated by the FBI’s New Haven Safe Streets Task Force, the New Haven, Hamden and Milford Police Departments, and the State of Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and H. Gordon Hall.PUBLIC AFFAIRS CONTACT:
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Tom Carson
(203) 821-3722
[email protected]Naples Man Indicted for Two Armed Bank RobberiesRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces an indictment charging John Robert Haldemann (30, Naples) with two counts of armed bank robbery. Each count carries a maximum penalty of 25 years in federal prison. The indictment also notifies Haldemann that the United States is seeking a money judgment in the amount of $12,308.00, the total proceeds of the armed bank robberies.
According to the indictment, on July 12, 2014, Haldemann committed an armed robbery at a Wells Fargo Bank, in Naples. The indictment further alleges that on July 25, 2014, he committed an armed robbery at a Bank of America in Punta Gorda.
An indictment is merely a formal charge that a defendant has committed a violation of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation Violent Crimes Task Force, the Punta Gorda Police Department, the Naples Police Department, and the Collier County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney David G. Lazarus.
Miami Resident Sentenced in Identity Theft Tax Fraud and Social Security SchemesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Thomas Caul, Special Agent in Charge, Social Security Administration (SSA), Office of Inspector General, announce that Kevin Cimeus, 21, of Miami, was sentenced before Judge William J. Zloch to 156 months in prison, to be followed by three years of supervised release.
On June 20, 2014, Cimeus was convicted after a four day jury trial in Fort Lauderdale for his roles in identity theft tax fraud and social security schemes. Specifically, Cimeus was convicted of ten counts in the superseding indictment, including one count of conspiracy to steal government property or money, in violation of Title 18, United States Code, Section 371, three counts of theft of government money or property, in violation of Title 18, United States Code, Section 641, one count of access device theft, in violation of Title 18, United States Code, Section 1029(a)(3), and five counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to records filed in this case and statements made in court, federal agents found over 2,400 social security numbers and names of real people stored on thumb drives, laptop computers, iPad, and Cimeus’ email account at Cimeus’ residence. The evidence at the trial also showed that Cimeus recruited Miami Dade College (MDC) students to allow the defendant to use their Higher One Bank accounts to receive fraudulently obtained tax refunds and that Cimeus used his own Higher One Bank and Chase accounts to receive fraudulently obtained tax refunds. Cimeus filed at least one thousand tax returns from two IP addresses. He also used the two IP addresses to access the Social Security Administration’s web site and create online profiles for social security recipients in order to re-route the victims’ social security payments to other accounts.
Mr. Ferrer commended the investigative efforts of FBI, IRS-CI, and the SSA. This case is being prosecuted by Assistant U.S. Attorneys Gera R. Peoples and Cynthia Wood.
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.
Medicaid Provider and Wife Convicted of Health Care FraudRead the Press Release
NORFOLK, Va. – W. Wayne Perry, Jr., 55, and his wife, Angela Perry, 52, formerly of Suffolk, Va., were convicted after a three-week trial late yesterday afternoon by a federal jury of one count of conspiracy to commit health care fraud, four counts of health care fraud, eight counts of false statements relating to health care matters, one count of alteration of records and four counts of aggravated identity theft.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, Virginia Attorney General Mark R. Herring and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office made the announcement today. The verdicts were accepted by United States District Judge Mark S. Davis.
W. Wayne Perry, Jr. and Angela Perry each face a maximum penalty of ten years in prison for conspiracy to commit health care fraud, ten years in prison for each count of health care fraud, five years on each of the false statement counts, twenty years for alteration of records, and two years on each of the aggravated identity theft counts when they are sentenced on January 8, 2015.
W. Wayne Perry, Jr. and Angela Perry were indicted on charges of conspiracy to commit health care fraud and seventeen other counts of related charges by a federal grand on February 5, 2014. According to court records and the evidence presented at trial, W. Wayne Perry, Jr. was the owner and operator of Community Personal Care, a business located in Norfolk, Va. that was authorized to provide home health care services that are reimbursable by Medicaid, including personal care and respite care services. Angela Perry was an officer and agent of the company. Between January 2009 and December 2012, Wayne Perry and Angela Perry orchestrated a false billing scheme where numerous fraudulent claims were submitted to the Virginia Medicaid program, falsely representing that personal care and respite care services had been provided to Medicaid recipients by Community Personal Care. A forfeiture provision in the superseding indictment asserts that the amount of the fraud is approximately $1.3 million dollars. In order to conceal the fraudulent payments, Wayne Perry and Angela Perry altered the company’s office records, including time sheets. This was done with the assistance of Allison Hunter-Evans, a former employee in the administration department of the Virginia Medicaid program, who previously pled guilty on May 14, 2014 and is scheduled to be sentenced on October 16, 2014.
This case was investigated by the FBI and the Virginia Attorney General’s Medicaid Fraud Control Unit, with the assistance of the Virginia Department of Medical Assistance Services. Assistant United States Attorneys Alan M. Salsbury and Melissa E. O’Boyle are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
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Manhattan Beach Executive Charged with Raiding Company CoffersRead the Press Release
SAN DIEGO – James (“Jim”) Miller, a Manhattan Beach attorney and corporate executive, appeared in magistrate court in Los Angeles County yesterday to face allegations that he embezzled over a quarter-million dollars from his former employer, MWRC Internet Sales LLC (“MWRC”).
As alleged in a five-count Indictment, Miller – an attorney who worked for Body Glove, International and served as the President and Managing Partner of MWRC – devised a scheme to steal money from MWRC to pay for his personal, non-company related expenses.
The Defendant carried out his scheme by writing checks from MWRC’s bank account to pay himself unauthorized income and supplemented his legitimate salary to the tune of hundreds of thousands of dollars over approximately four years. The Indictment further alleges that the Defendant failed to disclose to other MWRC partners his on-going self-enrichment scheme and failed to disclose to the banks that the checks he wrote to himself were not authorized by MWRC.
The criminal case against Miller (14CR0471) is assigned to U.S. District Court Judge Andre Birotte, Jr. The trial is set for November 11, 2014 at 8:30 a.m. Magistrate Judge Patrick J. Walsh ordered the Defendant released on a $50,000 bond pending trial.
DEFENDANT Case Number: 14cr0471 James R. Miller Age: 65 Manhattan Beach, CA CHARGESWire Fraud – Title 18, U.S.C., Section 1343
INVESTIGATING AGENCY
Maximum penalty: 20 years’ imprisonment and $250,000 fineFederal Bureau of Investigation
Internal Revenue Service Criminal Investigations*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.
Local Property Investor Pleads Guilty to Making False Statements on Real Estate Closing DocumentsRead the Press Release
COLUMBUS – Cynthia S. Mild, 41, of Lewis Center, Ohio pleaded guilty in U.S. District Court today to one count of making false statements relative to down payment information entered on a Department of Housing and Urban Development Form HUD-1. Mild faces a maximum of 5 years in prison and a fine of up to $250,000.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), announced Mild’s plea entered today before U.S. District Judge Michael Watson.
According to court documents, between September 2004 and December 2007, Mild worked as a property investor focusing on single family homes in and around Columbus, Ohio. Mild located, purchased, refinanced, rehabilitated, rented, and sold properties in Columbus. Mild purchased approximately 30 residential family homes in the Columbus area during this time frame. Mild sold 24 of these homes to friends, colleagues, and a family member. Many of the buyers obtained mortgage loans from Fifth Third Bank. Mild, unbeknownst to Fifth Third Bank, made the down payments for her buyers by purchasing official bank checks, made out to the closing title agency, and naming the buyers as the remitters on the checks. At closing, Mild signed HUD-1 Settlement Statements for each property sale indicating that the buyers were providing the down payments, when Mild knew that she was providing the buyers’ down payment.
At closing, Mild’s original mortgage loans were paid off and the excess seller proceeds were deposited into bank accounts under her control. The seller proceeds covered the amount Mild paid for the buyers’ down payments. In some instances, Mild provided cash back to her buyers. The majority of the homes sold by Mild eventually went into foreclosure.
Specifically, $447,200 in mortgage loans was secured from Fifth Third Bank relative to the purchase of 6 homes from Mild. Mild paid for the down payments on these 6 homes and did not accurately disclose this fact on the HUD-1 Settlement Statements. Due to the mortgage loan defaults and foreclosures suffered on these 6 properties, Fifth Third Bank suffered losses of approximately $357,000.
Mild was released on bond pending sentencing for which a date has not been set.
U.S. Attorney Stewart commended the cooperative investigation by the IRS and FBI, and Assistant U.S. Attorneys Laura M. Fulton and Dan Brown, who are prosecuting the case.
KC Man Charged with Throwing Molotov Cocktails at Congressional OfficeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was charged in federal court today with throwing Molotov cocktails at the local congressional office of U.S. Rep. Emanuel Cleaver II.
Eric G. King, 28, of Kansas City, was charged in a federal criminal complaint filed in the U.S. District Court in Kansas City, Mo., with using a dangerous instrument to oppose, impede, intimidate and interfere with a federal official engaged in the performance of his official duties.
On Sept. 11, 2014, at 2:52 a.m., a window was broken and two Molotov cocktails were thrown at Cleaver’s congressional office located at 101 W. 31st Street, Kansas City, Mo. The office was unoccupied at the time of the incident. A hammer used to break the window was recovered from the scene, as well as two broken Molotov cocktails. There was not any fire damage done to the building.
According to an affidavit filed in support of today’s criminal complaint, video footage shows King retrieve two bottles with a white ignition source from his backpack, then walk around the parking lot for a few minutes in an effort to hide from cars that were passing by. The footage allegedly shows King throwing a hammer through the west window and lighting the devices. The first device thrown appears to bounce off the side of the building. The second device is ignited and is thrown at the window. King allegedly sprints away from the office.
A Kansas City, Mo., Police Department detective, while investigating a series of anti-government related vandalisms in the immediate vicinity of the congressman’s office over the Labor Day weekend, reviewed surveillance footage from one of those incidents at a nearby Bank of America. The incidents involved spray painting anti-government/anarchy graffiti and included some police vehicles, a Federal Protective Police vehicle and the Liberty Memorial National World War I museum. According to the affidavit, detectives who were familiar with King from other previous investigations were able to confirm that it was in fact King on the surveillance footage.
Investigators reviewed social media and Facebook posts by King, the affidavit says. One post, dated Sept. 3, 2014, states: “KC Fight Back celebrated its first labor day with a lovely variety of action, action and more action against a series of government and Financial properties.” Other posts include King posting “KC Fight Back Insurrectionist Collective is alive,” and “these cops aren’t going to kill themselves, get to the streets.” On Aug. 10, 2014, King allegedly posted, “I want to leave kc better than I found or an ashes.” A social media post allegedly by King on the day before the incident at the congressman’s office, Sept. 10, 2014, reads, “KC Fight Back has been in serious in its Insurrection activity, and that is the thing that is giving me the most pride in my life.”
King was arrested as he was leaving his apartment on Tuesday, Sept. 16, 2014. According to the affidavit, King was carrying a backpack that contained a red can of spray paint, Kingsford Charcoal Lighter fluid and a clear plastic soda bottle (containing an unknown liquid) with a tube sock placed over it.
Agents executed a search warrant at King’s residence and found a hand-written letter on a bedside shelf, entitled “Operation House Committee.” The letter lists: “(1) Paint thinner/alcohol, (2) face cover/hand cover/all tattoos covered, (3) Three bottles glass, (4) paper towels, old rags/lighter, (5) drive/driver, must be someone trust with. “ The letter then mentions the steps to light the devices, says to “use hammer/sledgehammer to break door,” “light bottles, throw them, light curtains,” and repeat these steps on “government buildings, all things police, certain law firms, corporations…” The first part of the backside of the letter reads, “The arsons committed on Sept 11, 2014 were committed solely by the KC FIGHT BACK Insurrectionist Collective.”
The letter then specifically reads “The Missouri congress has been a willing partner in the US governments capitalist war hungry agenda.” The letter discusses several future targets, including police officers, pay day loans, banks and the Federal Reserve. Towards the end of the letter it mentions “K.C.F.B. I.C. has declared war on the Missouri National Government.”
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Patrick C. Edwards. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Federal Protective Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.Jury Finds Tennessee Man Guilty for Failure to Register as A Sex OffenderRead the Press Release
Follow @SDILNewsRonald Douglas, a 59-year old Memphis, Tennessee, man was found guilty on September 17, 2014, in federal district court, in East St. Louis, Illinois, for failure to register as a sex offender, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Douglas will be sentenced on January 23, 2015.
The violation occurred in 2012, when Douglas moved from Illinois to Tennessee, after signing an Illinois Sex Offender Registration Act Notification Form on January 9, 2012, requiring him to either update his sex offender registration in Illinois to reflect his change of address, or register as a sex offender in Tennessee within three days. Douglas had been previously convicted of Aggravated Criminal Sexual Abuse on June 5, 1992, and July 8, 1999 in Madison County, Illinois.
“The Sex Offender Registration and Notification Act serves the important purpose of allowing persons to be aware of sex offenders who might be living in their neighborhoods. I am pleased that this federal jury rightfully recognized the importance of this concept in finding this offender guilty of not complying with the law.” said United States Attorney Wigginton.
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 sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the United States Marshals Service and prosecuted by Assistant United States Attorneys Daniel T. Kapsak and Nathan D. Stump
Jersey City Man Sentenced to 114 Months in Prison for Armed Robbery of Jewelry StoreRead the Press Release
TRENTON, N.J. – A Jersey City man was sentenced today to 114 months in prison for committing an armed robbery of a jewelry store in Hudson County, New Jersey, U.S. Attorney Paul J. Fishman announced.
Mouhamadou Lamine Amar, 21, previously pleaded guilty before U.S. District Judge Mary L. Cooper in Trenton federal court to an indictment charging him with committing a Hobbs Act robbery and with brandishing a firearm during the robbery. Judge Cooper imposed the sentence – which includes 30 months on the robbery count and 84 months, served consecutively, on the weapons count – today in Trenton federal court.
According to documents filed in this case and statements made in court:
On June 28, 2013, Amar entered a jewelry store in Jersey City and held a gun to a store employee’s head. He grabbed and pushed the employee when the employee tried to flee. He tied up the employee and threatened to shoot the employee if the employee tried to escape. Amar was arrested inside the store while still in possession of the firearm.
In addition to the prison term, Judge Cooper sentenced Amar to three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s guilty plea. He also thanked the Jersey City Police Department and the Hudson County Prosecutor’s Office for their work on this case.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Jeffrey B. Steinfeld Esq., NewarkJeffrey Cohen Charged in Superseding Indictment with Wire Fraud, Money Laundering and Making False Statements to Fraudulently Obtain over $100 Million in Insurance PremiumsRead the Press Release
Allegedly Created and Transmitted False Documents and Made False Statements
Baltimore, Maryland - A federal grand jury has returned a superseding indictment charging Jeffrey Brian Cohen, age 39, of Reisterstown, Maryland, with wire fraud and money laundering in addition to the charges of making false statements to an insurance regulator that were included in the original indictment. The superseding indictment was returned on September 16, 2014.The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
According to the superseding indictment, Cohen acted as the president and chairman of the board of a Delaware corporation Indemnity Insurance Corporation RRG (Indemnity). Cohen previously controlled a District of Columbia corporation called Indemnity Insurance Corporation of DC, Risk Retention Group (Indemnity-DC), which was a predecessor entity to Indemnity. Both companies were located in Sparks, Maryland, and provided general liability insurance, liquor liability insurance, and excess liability insurance coverage to their customers, which were individuals and companies involved in the entertainment industry, such as nightclubs, concert tours, and special events. Both companies operated in several states, including Maryland. In 2012, Indemnity insured more than 3,000 policyholders, and collected over $25 million in premiums.
The Delaware Insurance Commissioner and the DC Insurance Commissioner were charged by law with the responsibility of protecting insurance policyholders and the general public by regulating insurance companies and risk retention groups and their products to ensure among other things, that insurance companies and risk retention groups have the ability to pay claims.
According to the 12-count superseding indictment, Cohen obtained and attempted to obtain money from insurance policyholders and potential insurance policyholders of Indemnity-DC and Indemnity based on financial ratings, financial audits, and insurance regulatory approvals that Cohen fraudulently obtained. The indictment alleges that beginning in January 2008, and continuing until the fall of 2013, Cohen defrauded insurance policyholders and prospective insurance policyholders in order to obtain more than $100 million in insurance premiums, by falsely representing the financial status of Indemnity-DC, Indemnity, and other Cohen controlled entities to insurance policyholders, prospective insurance policyholders, the rating agency A.M. Best, to independent auditors, the DC Insurance Commissioner, and the Delaware Insurance Commissioner.
Specifically, the superseding indictment alleges that Cohen created false financial documents, including bank statements, letters of credit, and confirmations of bank account balances. These documents allegedly included a bank confirmation from a fictitious entity called RBCI, purportedly showing that Indemnity-DC had a bank account with a balance of $10 million as of December 31, 2009, and a bank confirmation dated March 1, 2013, purportedly from RBC Government Demands, showing that Indemnity’s bank account ending in 6652 had a balance of $5,097,276. According to the indictment, Cohen transmitted these false documents to A.M. Best in order to obtain financial ratings for Indemnity-DC and Indemnity that were not based on the companies’ true financial condition. Cohen then allegedly touted the A.M. Best ratings to potential policyholders, policyholders, and regulatory agencies. Cohen also allegedly transmitted false and fraudulent emails, management representation letters, financial statements, and other documents to the auditing firms Marcum and BDO so the auditors would provide an unqualified audit opinion on Indemnity-DC and Indemnity financial statements that Cohen knew were false.
According to the superseding indictment, Cohen caused Indemnity-DC and Indemnity to issue insurance policies exceeding the coverage limits authorized by the DC Insurance Commissioner and the Delaware Insurance Commissioner. To conceal the true financial condition of the companies, Cohen allegedly transmitted fraudulent audited and unaudited financial statements for Indemnity-DC and Indemnity to the DC Insurance Commissioner and the Delaware Insurance Commissioner. Cohen also allegedly made false statements to representatives of the Delaware Insurance Commissioner in June 2012.According to the indictment, Cohen also conducted financial transactions with the proceeds of the scheme. Specifically the indictment alleges that Cohen transferred $666,667.67 from a corporate account he controlled to an account in the name of a law firm, and Cohen transferred $200,000 from a corporate account he controlled to one of his personal accounts.
The indictment seeks forfeiture of $100,866,667.67, believed to be the proceeds of the scheme.
Cohen faces a maximum sentence of 20 years in prison for each of five counts of wire fraud, 10 years in prison for each of two counts of money laundering, and 15 years in prison for each of five counts of making false statements to an insurance regulator. No court appearance has been scheduled and Cohen remains detained.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI, HSI Baltimore, IRS – Criminal Investigation and U.S. Postal Inspection Service - Washington Division for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Joyce K. McDonald, who are prosecuting the case.