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Tuesday 16 September 2014
23 Arrests Made Today in 62-count Federal Drug Trafficking IndictmentRead the Press Release
LITTLE ROCK, AR – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; along with David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI); and Little Rock Police Department Chief Kenton Buckner announced the unsealing of a 62-count indictment charging multiple defendants in Arkansas, Georgia, Texas and Tennessee, with multiple drug, weapons and money laundering charges. An investigation into a large-scale drug trafficking organization based in Little Rock resulted in the early-morning arrests of 22 defendants on charges involving distribution of cocaine, crack cocaine, and marijuana, weapons possession, and money laundering charges. 20 arrests were made in Little Rock; one, Christian White, was arrested in the Mesquite/Dallas, Texas area; and one, Rachel Green, was arrested in Atlanta, Georgia. Three; Michael Dawkins, Rodriques Davis and Richard Beason, are still at large.
“These large-scale investigations and ultimate arrests take a well-planned coordinated effort by many law enforcement partners on the federal, state and local levels,” stated Thyer. “We are fortunate to have good working relationships where drug trafficking organizations such as this one are dismantled. Not only are the drugs taken off the street, but the associated weapons and criminal enterprise is removed from our neighborhoods.
“We are proud of this partnership which remains focused on dismantling the violent criminal enterprises which attempt to root their networks within our communities,” said Special Agent In Charge David T. Resch of the FBI Little Rock Field Office. “Today’s arrests are the culmination of a long term collaboration between the Little Rock, Benton, and Sherwood Police Departments, as well as the Pulaski County Sheriff’s Department, U.S. Marshals, Arkansas National Guard, Arkansas State Police, the US Attorney’s office, and the FBI.”
“Today’s events provide an excellent example of the partnerships between local, county, state, and federal agencies. We greatly appreciate the FBI and their continued support for this critical mission,” said Chief Kenton Buckner of the Little Rock Police Department.
The FBI investigation began in January 2013. Multiple undercover operations and numerous other law enforcement actions, including multiple seizures of cocaine and crack cocaine were used during the investigation. All told, the FBI purchased more than 1.75 kilos of cocaine from the Freddie Brewster drug trafficking organization (DTO) in a dozen controlled purchases. In addition, agents seized more than nine ounces of crack cocaine and more than 165 pounds of marijuana.
The Brewster DTO was based out of Brewster’s Used Auto and Detail shop on Forbing Road in southwest Little Rock. Included in the indictment were several forfeiture counts which called for the forfeiture of multiple vehicles used by the Freddie Brewster organization, including the inventory of the used car shop. As part of the operation on Tuesday more than 20 vehicles and more than $35,000 in drug proceeds from multiple bank accounts was seized.
The indictment was handed down by a Federal Grand Jury on September 11, 2014. The indictment charges 25 defendants in 62 separate counts. The counts include conspiracy to possess with intent to distribute more than 5 kilograms of cocaine, conspiracy to possess with intent to distribute crack cocaine, conspiracy to possess with intent to distribute marijuana, aiding and abetting the distribution of cocaine, felon in possession of firearms, money laundering, and the use of telephone to facilitate a drug trafficking crime. If convicted of conspiracy to distribute more than 5 kilograms of cocaine each defendant will face a sentence of not less than 10 years to life imprisonment.
The investigation was conducted by the FBI, with assistance from multiple law enforcement agencies including: the Little Rock Police Department, Benton Police Department, Sherwood Police Department, Pulaski County Sheriff’s Office, Arkansas National Guard, Arkansas State Police, Homeland Security Investigations, and United States Marshal Service. The case is being prosecuted by Assistant United States Attorneys Chris Givens and Benecia Moore.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
BREWSTER DTO INDICTMENT
DEFENDANTS/CHARGES
Conspiracy to possess with intent to distribute cocaine:
- Freddie Eugene BREWSTER, 30, Little Rock
- Alton Elijah GIVENS, 30, Little Rock
- Christopher Lamont JONES, 41, Little Rock
- Thomas Stacy CAFFREY, 42, Mabelvale
- Richard BEASON, 42, West Memphis
- Tommie ICE, 24, Little Rock
- Clarence ALLEN, 56, Little Rock
- Rachel LEWIS, 34, Little Rock
- Ladeitrick HAMPTON, 33, North Little Rock
- Ashley RAMAGE, Pine Bluff
- Linda BREWSTER, 52, Little Rock
- David BOWMAN, JR., 40, Little Rock
- D’Angelo CANNON, 29, Mabelvale
- Michael Deshun DAWKINS, 27, Little Rock
- Verna THOMPSON, 35, Conway
- Brunson Jay TAYLOR, 29, Little Rock
- Charles OLIVER, 57, Little Rock
- Taquila SHOTO, 27, Hope
- Freddie Eugene BREWSTER, 30, Little Rock
- Alton Elijah GIVENS, 30, Little Rock
- Thomas Stacy CAFFREY, 42, Mabelvale
- Richard BEASON, 42, West Memphis
- Darrell GREEN, 31, Camden
- Willie Joseph TYLER, JR., 37, Little Rock
- Ashley RAMAGE, Pine Bluff
- David BOWMAN, JR., 40, Little Rock
- Charles OLIVER, 57, Little Rock
- Clinton BREWER, 41, Benton
- Rodriques D’Angelo DAVIS, 30, Little Rock
Conspiracy to possess with intent to distribute marijuana:
- Freddie Eugene BREWSTER, 30, Little Rock
- Jennifer MAY, 38, Sherwood
- Christian WHITE, 24, Mesquite, Texas
Possession with intent to distribute and distribution of cocaine:
- Freddie Eugene BREWSTER, 30, Little Rock
- Alton Elijah GIVENS, 30, Little Rock
- Christopher Lamont JONES, 41, Little Rock
- Darrell GREEN, 31, Camden
- Rachel LEWIS, 34, Little Rock
- David BOWMAN, JR., 40, Little Rock
Possession with intent to distribute crack cocaine:
- Darrell GREEN, 31, Camden
Felon in possession of a firearm:
- Alton Elijah GIVENS, 30, Little Rock
Money laundering:
- Christina Akins BREWSTER, 27, Little Rock
Use of a communication facility:
- Freddie Eugene BREWSTER, 30, Little Rock
- Alton Elijah GIVENS, 30, Little Rock
- Christopher Lamont JONES, 41, Little Rock
- Thomas Stacy CAFFREY, 42, Mabelvale
- Richard BEASON, 42, West Memphis
- Darrell GREEN, 31, Camden
- Tommie ICE, 24, Little Rock
- Clarence ALLEN, 56, Little Rock
- Willie Joseph TYLER, JR., 37, Little Rock
- Ladeitrick HAMPTON, 33, North Little Rock
- Ashley RAMAGE, Pine Bluff
- David BOWMAN, JR., 40, Little Rock
- D’Angelo CANNON, 29, Mabelvale
- Michael Deshun DAWKINS, 27, Little Rock
- Verna THOMPSON, 35, Conway
- Brunson Jay TAYLOR, 29, Little Rock
- Charles OLIVER, 57, Little Rock
- Clinton BREWER, 41, Benton
- Rodriques D’Angelo DAVIS, 30, Little Rock
- Taquila SHOTO, 27, Hope
STATUTORY SENTENCES
Conspiracy to possess with intent to distribute and to distribute more than 5 kilograms of cocaine is punishable by not less than 10 years, not more than life, incarceration in the Bureau of Prisons with a possible fine of up to $10,000,000, and not less than 5 years supervised release.
Conspiracy to possess with intent to distribute and to distribute more than 500 grams but less than 5 kilograms of cocaine is punishable by not less than 5 years, not more than 40 years incarceration in the Bureau of Prisons with a possible fine of up to $5,000,000, and not less than 4 years supervised release.
Conspiracy to possess with intent to distribute and to distribute less than 500 grams of cocaine is punishable by not more than 20 years incarceration in the Bureau of Prisons with a possible fine of up to $1,000,000, and not less than 3 years supervised release.
Conspiracy to possess with intent to distribute and to distribute more than 280 grams of crack cocaine is punishable by not less than 10 years, not more than life, incarceration in the Bureau of Prisons with a possible fine of up to $10,000,000, and not less than 5 years supervised release.
Conspiracy to possess with intent to distribute and to distribute more than 28 grams but less than 280 grams of crack cocaine is punishable by not less than 5 years, not more than 40 years incarceration in the Bureau of Prisons with a possible fine of up to $5,000,000, and not less than 4 years supervised release.
Conspiracy to possess with intent to distribute and to distribute less than 28 grams of crack cocaine is punishable by not more than 20 years incarceration in the Bureau of Prisons with a possible fine of up to $1,000,000, and not less than 3 years supervised release.
Conspiracy to possess with intent to distribute more than 50 kilograms but less than 100 kilograms of marijuana is punishable by not more than 20 years incarceration in the Bureau of Prisons with a possible fine of up to $1,000,000, and not less than 3 years supervised release.
Distribution of less than 500 grams of cocaine is punishable by not more than 20 years incarceration in the Bureau of Prisons with a possible fine of up to $1,000,000, and not less than 3 years supervised release.
Possession with the intent to distribute less than 500 grams of cocaine is punishable by not more than 20 years incarceration in the Bureau of Prisons with a possible fine of up to $1,000,000, and not less than 3 years supervised release.
Possession with intent to distribute more than 28 grams but less than 280 grams of crack cocaine is punishable by not less than 5 years, not more than 40 years incarceration in the Bureau of Prisons with a possible fine of up to $5,000,000, and not less than 4 years supervised release.
Possession of a firearm by a felon is punishable by not more than 20 years incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 3 years supervised release.
Use of a communication facility to facilitate a drug trafficking crime is punishable by not more than 4 years incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 1 year supervised release.
Money laundering is punishable by not more than 20 years incarceration in the Bureau of Prisons with a possible fine of up to $500,000, and not more than 3 years supervised release.
Monday 15 September 2014
Yulee Man Charged in Federal Court with Receiving and Distributing Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Nicholas Mitko Clark (21, Yulee) has been charged by a federal criminal complaint with distributing and receiving child pornography. If convicted, he faces a mandatory minimum penalty of five years, up to twenty years in federal prison, and a potential life term of supervision. Clark was arrested on September 11, 2014, at his residence. He was ordered detained pending a hearing on September 18, 2014, at 1:00 p.m., before United States Magistrate Judge James R. Klindt, in Jacksonville.
According to the criminal complaint, during an investigation leading to the arrest of an individual in Canada in 2013, law enforcement discovered communications between the individual in Canada and others relating to child exploitation offenses. Included in the communications were conversations between the Canadian individual and Clark. Specifically, on April 30, 2013, Clark and this individual engaged in an instant message conversation wherein Clark received and distributed images of a minor engaging in sexually explicit conduct. A forensic examination of Clark’s computer revealed additional images of child pornography. In addition, agents located Google search terms such as “young boys on cam” and “teen boy sex” on Clark’s computer, as well as remnants of chats using another messaging service discussing a preference for young and little boys.
Clark was employed as an after-school counselor by a youth development organization in Northeast Florida, and worked with youth through various churches. He also advertises his babysitting and child transportation services on the Internet.
A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Nassau County Sheriff’s Office, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Kelly S. Karase.
It is another 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.
- Worker Guilty of Calling in Bomb Threat to Avoid Working
Woman Sentenced for Growing Marijuana in Sequoia National Forest and Damaging Public LandsRead the Press Release
FRESNO, Calif. — Marcelina Botello Charles, aka Marcelina Botello Arias (Botello), 46, of Hemet, was sentenced today to four years and two months in prison for her involvement in a marijuana cultivation operation that had adverse environmental impacts on public lands, U.S. Attorney Benjamin B. Wagner announced.
On May 19, 2014, Botello pleaded guilty to conspiring to manufacture, distribute and possess with intent to distribute 9,746 marijuana plants grown in the Lilly Canyon area of the Sequoia National Forest and distributing Ratone: Fosfuro de Zinc, an illegal rodenticide, and QúFuran, an illegal insecticide, in violation of the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA).
According to court documents, Botello and a companion delivered the illegal pesticides and other materials to the forest cultivation site. The cultivation operation caused extensive environmental damage. Native oak trees and other vegetation were killed or cut down to make room for the marijuana plants. The soil was tilled and fertilizers, pesticides, and rodenticides were spread throughout the site. Cans of rat poison and insecticide were found at both the cultivation site and a residence Botello rented in Bakersfield. During the execution of a search warrant, agents also found marijuana seeds, other items associated with the cultivation operation, and $2,634 in cash.
Ratone: Forsfuro de Zinc contains zinc phosphide, an inorganic rodenticide that is highly toxic to mammals and fish. A single swallow of zinc phosphide could be fatal to a small child. Zinc phosphide can be expected to persist in soil for approximately two weeks. When it breaks down in soil it can release phosphine gas.
QúFuran contains carbofuran, a highly toxic insecticide. In granular form, a single grain will kill a bird; for humans, one quarter of a teaspoon is a sufficient dose to be fatal. It is also a powerful endocrine disrupter. Effective December 31, 2009, EPA cancelled all food tolerances for carbofuran.
“Illegal marijuana cultivation plagues our pristine national forests,” said Scott Harris, U.S. Forest Service Special Agent in Charge. “Those involved in this criminal activity place the community and their natural resources in danger. U.S. Forest Service Law Enforcement and our partners are committed to deterring, investigating, and prosecuting individuals and organizations that would exploit our public lands for such purposes.”
“Increasingly, dangerous, unregistered pesticides are being encountered by law enforcement officers who investigate illegal marijuana grows,” said Jay M. Green, Special Agent-in-Charge of EPA’s criminal enforcement program in California. “Through their indiscriminate application, these unregistered pesticides pollute our lands and waters, create a significant safety risk to humans and animals, and present a mounting cleanup expense for taxpayers. Today’s sentence demonstrates the government’s commitment to hold accountable those individuals who traffic unregistered pesticides onto our public lands.”
Upon completion of her prison sentence, Botello will be on supervised release for five years. She was also ordered to pay $4,294 in restitution to the U.S. Forest Service to cover the cost of cleaning up the grow site. Earlier this year, Botello’s co-defendant, Julio Cesar Villanueva Cornejo was sentenced to six years in prison for his involvement in the conspiracy.
This case was the product of an investigation by the U.S. Forest Service, U.S. Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the U.S. Environmental Protection Agency Criminal Investigation Division (EPA-CID), and the Kern County Sheriff’s Office. Assistant United States Attorney Karen Escobar prosecuted the case.
Wichita Man Sentenced to Federal Prison for CounterfeitingRead the Press Release
WICHITA, KAN. A Wichita man was sentenced Monday to two years federal prison for counterfeiting, U.S. Attorney Barry Grissom said.
Billy J. Antrobus, 25, Wichita, Kan., pleaded guilty to one count of manufacturing counterfeit currency. In his plea, he admitted he counterfeited four $50 bills, 27 $20 bills, five $100 bills, and four sheets of uncut $20 bills.
Co-defendants include:
Harvey D. Salisbury, who was sentenced to two years.
Dustelia D. Watts, who is set for sentencing Oct. 6.Grissom commended the Department of Homeland Security and Assistant U.S. Attorney Alan Metzger for their work on the case.
Washington, DC Man Convicted in Armed Robbery and Carjacking ShootingsRead the Press Release
Investigation by FBI’s Cross Border Task Force Results in The Conviction of the Final Defendant in a Violent Robbery and Carjacking
Greenbelt, Maryland – A federal jury convicted Anthony Terrell Cannon, age 25, of Washington, D.C., late on September 12, 2014, of conspiracy, robbery, carjacking, and two counts of discharging a gun during a crime of violence, and interstate transportation of a stolen vehicle, in connection with an armored car robbery and a carjacking in which a victim was shot in the arm and head.The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; the members of the FBI Cross Border Task Force - Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Assistant Director in Charge Andrew G. McCabe of the Federal Bureau of Investigation - Washington Field Office; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; Chief Alan Goldberg of the Takoma Park Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to the evidence presented at Cannon’s two week trial, on October 26, 2012, Cannon, Tonnie Floyd, and Marcellus Ramone Freeman, a/k/a Derrick Relando Pitts, driving a stolen Jeep, followed a Garda Cash Logistics armored transport vehicle to the Cricket store located in the 1300 block of University Boulevard East, Takoma Park, Maryland. A Garda employee exited the armored truck, went into the store and picked up a bag containing $3,911. As the employee returned to the armored truck, he was confronted by two co-conspirators with guns. The Garda employee dropped the money bag and at least one co-conspirator fired a gun at the employee. The employee shot back. One of the co-conspirators picked up the money bag. The co-conspirators ran back to the stolen Jeep. As the co-conspirators drove away, the employee continued to fire his handgun at the Jeep, striking a tire and the back window. Floyd was wounded in the shoulder during the gunfire.
The co-conspirators left the Jeep in a neighborhood nearby because it had a flat tire as a result of the shooting. They saw a man entering a vehicle, and shot the man in the arm and head, causing permanent and life-threatening bodily injury, then stole his vehicle. They drove the vehicle into the District of Columbia, where they set it on fire.
The evidence also included a recorded call between Cannon and an inmate at Prince George’s County Detention Center in which Cannon acknowledged his participation in the crimes and expressed disappointment in leaving an evidence trail in the stolen Jeep.
Cannon faces a maximum penalty of 20 years in prison for the conspiracy; 20 years in prison for armed robbery; life in prison for each count of using and discharging a weapon during a crime of violence; 25 years in prison for carjacking; and 10 years in prison for interstate transportation of a stolen vehicle. Chief U.S. District Judge Deborah K. Chasanow has scheduled sentencing for December 1, 2014 at 9:30 a.m.
Co-conspirator Tonnie Floyd, age 22, of Washington, D.C., previously pleaded guilty to robbery, and discharging a gun during the robbery and carjacking. Floyd is scheduled to be sentenced on November 25, 2014. Marcellus Ramone Freeman, a/k/a Derrick Relando Pitts, age 23, also of Washington, D.C., pleaded guilty to the same offenses. Freeman and the government have agreed that if the Court accepts his plea, Freeman will be sentenced to between 241 months and 30 years in prison at his sentencing on December 11, 2014.
United States Attorney Rod J. Rosenstein praised the FBI Baltimore and Washington Field Offices, the Prince George’s County and Montgomery County Police Departments, the Metropolitan Police Department, the Takoma Park Police Department and the Prince George’s County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Bryan E. Foreman, who are prosecuting the case.
Visalia Woman Pleads Guilty to Fraud and Identity Theft for Filing False Tax Returns Using Stolen IdentitiesRead the Press Release
FRESNO, Calif. —Rebekah Root, 33, of Visalia, pleaded guilty today to wire fraud, making a false claim for a tax refund, and aggravated identity theft, United States Attorney Benjamin B. Wagner announced.
According to court documents, in 2011, Root obtained tax documents that were stolen from an Internal Revenue Service office in Visalia. She used those tax documents to submit false tax returns on behalf of six taxpayers, without their knowledge or permission, and claimed approximately $50,000 in fraudulent tax refunds.
San Francisco Field Division Special Agent-in-Charge Rod Ammari for the Office of Investigations, Treasury Inspector General for Tax Administration stated: “When individuals steal information from the Internal Revenue Service and use that information to further identity theft, victims are left picking up the pieces from the financial problems they are left with due to the crimes committed. The Treasury Inspector General for Tax Administration is committed to pursuing individuals that use the IRS to further their identity theft schemes.”
This case is the product of an investigation by the Treasury Inspector General for Tax Administration and the Internal Revenue Service Criminal Investigation. Assistant United States Attorneys Grant B. Rabenn and Patrick R. Delahunty are prosecuting the case.
Root is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on January 20, 2015. Root faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for wire fraud, five years in prison and a $250,000 fine for making a false claim for a tax refund, and a mandatory minimum penalty of two years in prison to be served consecutively with any other charged offenses for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
United States Attorney Booth Goodwin to Host Law Enforcement & Victim Assistance Awards Ceremony TomorrowRead the Press Release
*****MEDIA ADVISORY*****
Event to Honor Outstanding Service and Achievement of Law Enforcement, Community Leaders, Among Others
CHARLESTON, W.Va. –United States Attorney Booth Goodwin will host the 2014 Law Enforcement and Victim Assistance Awards ceremony on TUESDAY, SEPTEMBER 16, 2014, AT NOON, at the Glade Springs Resort in Daniels, West Virginia.
The annual awards ceremony, hosted by the U.S. Attorney's Office, recognizes exemplary service of federal, state and local law enforcement officers, as well as other leaders who have made significant contributions on behalf of the criminal justice system. In addition, several nominees chosen as part of the victim advocacy category will be honored for outstanding efforts, vision and/or leadership in support of crime victims.
WHO: U.S. Attorney Booth Goodwin, joined by various representatives from the law enforcement community and community leaders;
WHAT: Annual Law Enforcement and Victim Assistance Awards ceremony;
WHEN: Tuesday, September 16, 2014;
TIME: 12:00 p.m. to 1:30 p.m.
WHERE:
Glade Springs Resort
255 Resort Drive
Daniels, WV*The awards ceremony will be preceded by a brief reception.
U.S. Attorney Barry Grissom to Speak at Hutchinson Community CollegeRead the Press Release
HUTCHINSON, KAN. U.S. Attorney Barry Grissom will speak during Constitution Day on Wednesday, Sept. 17, at Hutchinson Community College.
Grissom’s speech will be titled, “The Constitution, the Bill of Rights and Beyond.” The presentation will begin at 10:20 a.m. in the Shears Technology Center on the Hutchinson Community College campus, 1300 N. Plum in Hutchinson.
Constitution Day is an annual event recognizing the signing of the U.S. Constitution in September 1787.
Grissom was appointed by President Barack Obama and confirmed by the U.S. Senate in 2010. The U.S. Attorney has three offices in Kansas – Kansas City, Kan., Topeka and Wichita – and a staff of approximately 100 employees, including about 50 Assistant U.S. Attorneys.Two Sentenced and One Pleads Guilty in Child Exploitation CasesRead the Press Release
FRESNO, Calif. — Today in federal court in Fresno, one man was sentenced to nearly 22 years in prison for producing child pornography, one was sentenced to 10 years in prison for receiving and distributing child pornography, and a third man pleaded guilty to receiving and distributing child pornography, United States Attorney Benjamin B. Wagner announced.
Fresno Man Sentenced to Nearly 22 Years in Prison for Producing Child Pornography (1:12-cr-236 LJO)
Benjamin Ruiz, 29, of Fresno, was sentenced today by U.S. District Judge Lawrence J. O'Neill to 21 years and 10 months in prison for producing child pornography.
According to court documents, in July 2012, Fresno law enforcement received a lead from the Concord Police Department that indicated Ruiz had been producing child pornography in Fresno in September 2010. A grand jury returned an indictment against Ruiz charging him with the above crime on August 2, 2012. He has been in federal custody and pleaded guilty to producing child pornography on June 3, 2014.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Fresno County Sheriff’s Office, and the Concord Police Department. Assistant United States Attorney Brian W. Enos prosecuted the case.
“While there is no way to undo the despicable crimes committed against these innocent and vulnerable children, it is a relief that the defendants found guilty of these crimes will no longer be in a position to carry out their criminal acts,” said Ray Greenlee, assistant special agent in charge for HSI San Francisco. “HSI will continue to work tirelessly with its federal and local law enforcement partners to seek justice for the young victims in these cases, who will bear the emotional and physical scars of these crimes for the rest of their lives.”
Former Kern County Man Sentenced to 10 Years in Prison (Case #: 1:13-cr-146 AWI)
Senior United States District Judge Anthony W. Ishii sentenced former Kern County resident Robert Aron Sprenkle, 36, to 10 years in prison, to be followed by 15 years of supervised release, for receiving and distributing child pornography, United States Attorney Benjamin B. Wagner announced.According to court documents, between September 29, 2012, and November 4, 2012, Sprenkle received and distributed images of child pornography via the Internet. On May 16, 2013, he was arrested in Clearwater, Florida where he had relocated. This case is the result of an investigation by the United States Marshals Service with assistance from the Clearwater Police Department and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney David Gappa prosecuted the case.
Fresno Man Pleads Guilty to Child Pornography Offense (Case #: 1:12-cr-403 LJO)
In a separate case, Bradley Allen Vaine, 28, of Fresno, pleaded guilty to two counts of receipt and distribution of child pornography. According to court documents, on October 25 and 27, 2012, Vaine received and distributed images of child pornography via the Internet He has been in custody as a danger to the community and a flight risk since his arrest on November 6, 2012. He is scheduled to be sentenced on December 8, 2014, by U.S. District Judge Lawrence J. O’Neil. The plea agreement contemplates a sentence of 25 years in prison and a lifetime term of supervised release. The actual sentence, however, will be determined at the discretion of the court at the hearing. Assistant U.S. Attorney David Gappa is prosecuting the case.This case was brought as part of Operation Sunflower, an international enforcement action, which ran from November 1 through December 7, 2012, spearheaded by HSI and aimed at rescuing victims and targeting individuals who own, trade, and produce child pornography. Operation Sunflower commemorated the one-year anniversary of a Kansas preteen victim who was located based upon a sunflower-shaped highway sign in the background of a picture.
All three cases were 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet safety education.
Two Plead Guilty in Theft of Cooking Oil from Restaurants in R.I. and Mass.Read the Press Release
PROVIDENCE, R.I. – Andrew Jeremiah, 78, and his brother, Bruce Jeremiah, 72, of Cranston, R.I., owners and operators of Jeremiah Motors Corp., and Removal Services and Green Energy, in Central Falls, R.I., have pleaded guilty in federal court in Providence to conspiring to sell and transport used cooking oil stolen from restaurants in Rhode Island and Massachusetts to a processing plant in New Hampshire for processing to animal feed and biofuel.
Andrew and Bruce Jeremiah pleaded guilty to one count of conspiracy to unlawfully transport stolen goods with a value in excess of $5,000. They each face a statutory penalty of up to 5 years in federal prison and a fine of up to $250,000 when they are sentenced by U.S. District Court Judge John J. McConnell, Jr., on December 4, 2014. In addition, the defendants will forfeit $44,730 in cash and a 1984 Ford F700 truck seized from them during the investigation.
The guilty pleas are announced by United States Attorney Peter F. Neronha; Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI; and Central Falls Police Chief James J. Mendonca.
Anthony Simone, Sr., 60, of Cranston, a co-defendant in this matter, pleaded guilty on August 21, 2013, to one count each of conspiracy to transport in interstate commerce stolen goods and transport in interstate commerce stolen goods. He is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on October 1, 2014.
According to information presented to the court, between January 1, 2011, and November 9, 2012, Andrew and Bruce Jeremiah conspired to steal used vegetable cooking oil from restaurants in Rhode Island and Massachusetts, and to sell the product to a New Hampshire company that specializes in processing used cooking oil for use in animal feed and biofuel. During that time, Anthony Simone, Sr., was provided lists of businesses in Rhode Island and Massachusetts where quantities of used cooking oil could be found. About three times a week, between the hours of midnight and 6:00 am, Simone, using a truck registered to Jeremiah Motors, visited those businesses and others, and, without permission from the businesses, pumped the used cooking oil into a storage tank on the truck. The used cooking oil was transported to the Central Falls industrial facility operated by the Jeremiah brothers.
At the direction of the Jeremiahs, a New Hampshire company regularly sent tanker trucks to the Central Falls facility where the defendants loaded between 2,000 and 7,000 gallons of used vegetable oil per trip. More than 200,000 gallons of used cooking oil was stolen and sold to the New Hampshire processing plant.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
The matter was investigated by the Central Falls Police Department and the FBI.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Two Arrested in Identity Theft and Tax Refund SchemeRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging two individuals with conspiracy to defraud the United States, multiple counts of aggravated identity theft, wire fraud, and access device fraud. Laura Butler (39) and Cherica Daniels (32), both of Jacksonville, were arrested early Thursday morning. If convicted, the conspiracy charge carries a maximum penalty of five years’ imprisonment. The aggravated identity theft offenses each carry a mandatory prison term of two years, which must be served consecutive to any other term of imprisonment. The maximum penalty for each wire fraud count is 20 years, and the access device fraud count carries a maximum sentence of 10 years in prison.
According to the Indictment, Butler and Daniels agreed and conspired with each other to intentionally and deliberately disrupt the collection of federal income tax by, among other means, filing fraudulent income tax returns. Butler is alleged to have acquired the identification of others through her employment by an insurance company and, along with Daniels, to have filed false and fraudulent income tax returns with the Internal Revenue Service.
An indictment is merely a formal charge that a defendant has committed a violation of federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
The case was investigated by the Internal Revenue Service - Criminal Investigation. Assistant United States Attorney Kelly S. Karase is handling the prosecution of this case.
Three Individuals Charged in Investment SchemeRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Jenifer E. Hoffman (37, Clermont), John C. Boschert (43, Apopka), and Bryan T. Zuzga (37, Coldwater, Michigan) with one count of conspiracy and eleven counts of wire fraud. Hoffman has also been charged with one count of filing a false tax return. If convicted, each faces a maximum penalty of 20 years in federal prison for each conspiracy and wire fraud count. Hoffman faces a maximum penalty of three years’ imprisonment for the false tax return count.
According to court documents, Hoffman, Boschert, and Zuzga defrauded over 100 victims out of more than $10 million, through investments offered in connection with a company called Assured Capital Consultants. As part of their solicitations, the defendants represented to investors that their money would be invested in a Performing Private Placement Investment, and that Boschert had connections to the trading program that was being used. Investors were told that their investments were safe and that none of their money would leave the attorney escrow account that belonged to Zuzga, who was represented as being an attorney licensed in Florida. Investors were further advised that their funds would be used as collateral for a line-of-credit, which would then be used in trading. None of those representations were true.
Zuzga was not an attorney licensed in Florida or any other state, and the funds were not deposited into any escrow account controlled by him. Instead, the three operated a scheme in which money from later investors was paid to earlier investors. The three also used some of the money from the scheme for themselves, including purchasing residences for Hoffman and Zuzga.
In a prior civil proceeding, the United States forfeited two residences belonging to Hoffman and Zuzga, which had been purchased with proceeds from the scheme. The United States obtained over $850,000 from the sale of the two properties. The proceeds from those sales were distributed to the victims of the scheme.
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 Internal Revenue Service – Criminal Investigation, the United States Secret Service, and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorneys Roger B. Handberg, James Mandolfo, and Nicole M. Andrejko.
Tax Preparer Sentenced to PrisonRead the Press Release
Tampa, FL – U.S. District Judge Steven D. Merryday sentenced Tyree Middleton (38, Riverview) today to ten months in federal prison for preparing fraudulent income tax returns. The Court also ordered him to pay restitution to the Internal Revenue Service, in the amount of $8,000. Middleton was indicted on January 14, 2014. He pleaded guilty on July 1, 2014.
According to court documents, Middleton owned and operated Middleton Financial, LLC, a tax preparation and consulting business located in Tampa. As part of his tax preparation business, Middleton prepared and filed numerous federal income tax returns, for tax years 2008 and 2009, claiming the First Time Homebuyer Credit (“FTHC”) on behalf of his clients. Included with the filings were Internal Revenue Service (“IRS”) were Forms 5405, which laid out each taxpayer’s qualification for the credit.
In many of the returns filed by Middleton, the information to support the FTHC was materially false, in that the clients and/or the homes themselves did not actually qualify for the FTHC. Despite not qualifying for the credit, Middleton falsely represented to the IRS that the taxpayer was purchasing a specific home, which the taxpayer never purchased. Middleton filed dozens of fraudulent IRS Forms 5405 requesting over $270,000 in FTHC funds for his taxpayer clients.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Matthew Jackson.
Stella Man Sentenced to 13 Years in Prison for Transporting a Minor for Illicit SexRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Stella, Mo., man was sentenced in federal court today for transporting a minor across state lines for illicit sex.
Tong Yang, 46, of Stella, was sentenced by U.S. Chief District Judge Greg Kays to 13 years in federal prison without parole.
Yang, who pleaded guilty on May 1, 2014, admitted that he traveled to Minnesota to pick up a 15-year-old girl and bring her back to Missouri on Dec. 7, 2013, with the intent to engage in illicit sexual activity.
Yang had contacted the minor victim a couple of weeks earlier by sending her a friend request on Facebook. Yang talked to her about coming to live with him in Missouri and told her he owned his own business. The minor victim went to her mother’s house to retrieve some clothing on Dec. 6, 2013, and while there, she asked Yang to come get her. She snuck out and met with Yang in front of her mother’s house the next day, and they drove to a hotel in Neosho, Mo., where they engaged in unprotected sex.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Cassville, Mo., Police Department and the Neosho, 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."Stamford Man Sentenced to More Than 7 Years in Federal Prison for Distributing CrackRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that GARY ENGLAND, 42, of Stamford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 92 months of imprisonment, followed by four years of supervised release, for his role in a southwestern Connecticut narcotics trafficking ring.
This matter stems from a six-month investigation spearheaded by the Drug Enforcement Administration and the Stamford Police Department’s Narcotics and Organized Crime Squad. As a result of the investigation, 20 individuals were charged with various federal offenses related to the distribution of cocaine and crack cocaine in Bridgeport, Norwalk and Stamford. In addition, law enforcement officers seized more than $100,000 in cash, 500 grams of cocaine, 350 grams of crack cocaine, several vehicles and jewelry.
According to court documents and statements made in court, the investigation revealed that Marvin Wooten, also known as “Smash,” of Norwalk, was operating a significant crack cocaine distribution ring in Fairfield County. Between September 2012 and January 2013, Wooten regularly purchased multi-hundred gram quantities of cocaine from various sources of supply, including individuals who were selling cocaine out of a Bridgeport barbershop. He then converted the cocaine to crack cocaine and distributed it to other dealers and customers.
ENGLAND was Wooten’s most-trusted associate, to whom Wooten regularly supplied crack cocaine. ENGLAND distributed the crack to several individuals in Stamford and Norwalk who sold the drug to their own customers.
On October 2, 2013, ENGLAND pleaded guilty to one count of conspiracy to possess with the intent to distribute 28 grams or more of cocaine base (“crack cocaine”).
Wooten also pleaded guilty and, on May 22, 2013, was sentenced to 120 months of imprisonment.
This matter has been investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force – including the Bridgeport, Stamford, Norwalk, Milford, Westport, and Stratford Police Departments, and the Connecticut State Police – and the Stamford Police Department’s Narcotics and Organized Crime Squad. The U.S. Marshals Service also assisted in the arrests of several of the defendants.
This case is being prosecuted by Assistant U.S. Attorneys Sarah Karwan and Robert Spector.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
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[email protected]Sinaloa Cartel Member Pleads Guilty to Drug ConspiracyRead the Press Release
CONCORD, NEW HAMPSHIRE – Jesus Gonzalo Palazuelos Soto, 51, of Mexico pleaded guilty today in United States District Court for the District of New Hampshire to conspiracy to distribute five or more kilograms of cocaine, announced United States Attorney John P. Kacavas.
Soto was arrested in Spain on August 7, 2012 after he and others arrived there to monitor the delivery of 346 kilograms of cocaine to Algeciras, Spain. The cocaine was hidden in a shipping container that was purported to contain glassware. The delivery resulted from negotiations between members of the Sinaloa Cartel, led by Joaquin Guzman-Loera, a/k/a “Chapo”, and undercover agents of the Federal Bureau of Investigation posing as members of an organized crime syndicate. Negotiations for the shipment began in 2009 and culminated in the delivery of the cocaine in 2012. Soto was responsible for supervising the loading of the cocaine in Brazil and monitoring its arrival in Algeciras.
A sentencing hearing has been scheduled for December 22, 2014. Soto is facing a mandatory minimum sentence of 10 years and a maximum sentence of life.
The case was investigated by the Federal Bureau of Investigation and prosecuted by First Assistant United States Attorney Donald Feith.Saratoga Resident Sentenced to Two and A Half Years in Prison for Failing to Report over $2.1 Million of IncomeRead the Press Release
SAN JOSE – Liping Liu was sentenced today to 30 months imprisonment, a $25,000 fine, and ordered to pay $744,248 in restitution for tax evasion, United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez announced.
According to the plea agreement, Liu was the receptionist and office manager for her spouse’s pediatric dental and orthodontic practice. Liu created a tax evasion scheme in which she skimmed money from various sources, including rental properties and her spouse’s dental and orthodontic practice. Liu admitted that she knew her actions were against the law and she was evading the assessment and payment of federal taxes throughout the course of her scheme.
Liu evaded taxes by funneling money from her husband’s practice into various bank accounts to prevent those funds from appearing in the business bank accounts. The only funds deposited into the business bank accounts were insurance payments, aside from thirteen personal checks in 2006 and one personal check in 2009. Liu admitted that she deposited the insurance proceeds exclusively into the business accounts because she knew the insurance company reported these payments to the IRS. Liu further admitted that she offered a 10% discount to dental clients if they paid in cash or by check, as long as they left the payee section on the check blank. Liu also modified checks, in the memo and payee fields to disguise the source of the payment. This enabled her to deposit the checks into the non-business accounts and evade taxes.
In addition, according to her plea agreement, from 2006 through 2010, Liu was a 50% partner in a limited liability corporation, HSL, which was created to hold rental property. Liu diverted rental checks paid to HSL to non-business bank accounts for the purpose of evading taxes on the HSL entity. She also changed the payee information on numerous rental checks.
From 2006 through 2010, Liu omitted $2,147,741.04 in gross receipts. This resulted in additional tax due and owing of $744,248.
Liu also admitted to providing incomplete and false information to the family bookkeeper, and engaging in a series of structured cash transactions from September 2008 to September 2009, which allowed her to continue to hide taxes from the IRS.
Liu, 56, of Saratoga was charged on March 19, 2014, with one count of tax evasion. She pleaded guilty to the charge on March 24, 2014.
The sentence was handed down by the Honorable Ronald M. Whyte, United States District Court Judge, in San Jose. Judge Whyte also sentenced Liu to a three-year term of supervised release. The defendant was ordered to surrender on December 1, 2014.
Assistant United States Attorney Thomas Moore is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
(Liu indictment )
Sanderson Drug Dealer Sentenced to over 19 YearsRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard sentenced Arnold Clayton (42, Sanderson) to nineteen years and six months in federal prison for one count of distributing cocaine base and cocaine, and for violating his supervised release in a prior federal case. Clayton was also sentenced to a term of six years of supervision, after his release from prison.
Clayton pleaded guilty on June 9, 2014.
According to court documents, on July 13, 2012, Clayton sold cocaine base and cocaine to a confidential source for $320. Clayton was sentenced as a career offender because of his two previous federal drug convictions. On July 27, 1999, Clayton was sentenced to almost five years in federal prison for conspiracy to distribute cocaine and cocaine base. On August 16, 2007, he was sentenced to over eight years in federal prison for distribution of cocaine base. Clayton was still on supervised release for the 2007 case when he distributed cocaine base and cocaine in the current case.
This case was investigated by the Baker County Sheriff’s Office and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorneys Rodney Brown and Frank Talbot.
SYRACUSE, NEW YORK - Guilty pleas for violations of the Clean Water Act entered.Read the Press Release
SYRACUSE, NEW YORK - Richard S. Hartunian, United States Attorney for the Northern District of New York, announced today the entry of guilty pleas for violations of the Clean Water Act by Mark Pullyblank, 53, of Caledonia, NY, William Clements, 53, of Victor, New York, and Crane-Hogan Structural Systems, Inc., 3001 Brockport Road, Spencerport, New York, (which employs Pullyblank and Clements) before the Honorable Thomas J. McAvoy in federal district court in Binghamton, NY.
Crane-Hogan is a company that uses hydro-demolition to renovate concrete structures. Hydro-demolition uses high pressure water to remove concrete from buildings such as parking garages, dams, bridges, and highways prior to resurfacing. The waste-water from the hydrodemolition process contains a slurry of industrial waste including concrete residue which has a highly caustic pH and total suspended solids, both of which are pollutants under the Clean Water Act. Mark Pullyblank was Crane-Hogan’s Project Manager in charge of renovation projects at the Binghamton Governmental Center Parking Garage and Johnson City Wilson Hospital Parking Garage throughout 2008 and 2009. He directed workers to discharge concrete slurry into the Susquehanna River for portions of two years, and into the Binghamton-Johnson City Publically Owned Treatment Works (POTW) during the summer 2009, both without Clean Water Act permits and without treatment for the high pH. William Clements was also a Project Manager in charge of the Johnson City Wilson Hospital Parking Garage renovation who participated in the unpermitted POTW discharges in 2009.
The Clean Water Act was enacted into law in 1972. Since that time it has been illegal to discharge pollutants into waters of the United States without a permit and without approved pretreatment prior to discharge. The Susquehanna River is a navigable water of the United States that provides drinking water to many thousands of individuals. It traverses through New York State, Pennsylvania, and Maryland and flows into the Chesapeake Bay and Atlantic Ocean. Mark Pullyblank and Crane-Hogan both plead guilty to felony violations of the Clean Water Act. William Clements pled guilty to a misdemeanor Clean Water Act violation. Pullyblank faces a maximum possible penalty of three years in prison and a $700,000 fine, plus supervised release thereafter. Crane-Hogan faces a maximum fine of $750,000 and five years of probation. If the plea agreement is accepted by the court, Crane-Hogan will be required to prepare and implement an environmental compliance plan to alter its policies and practices so as to reduce the likelihood of future criminal environmental conduct. William Clements faces a maximum possible term of incarceration of one year and a fine of $350,000 plus a term of supervised release. Sentencing will take place on January 23, 2014 in Binghamton, NY at 11:30AM for Mark Pullyblank, 1:30PM for Crane-Hogan, and 2:00PM for William Clements.
This case was investigated by Criminal Investigators with the New York State Department of Environmental Conservation, Bureau of Environmental Crimes Investigations, and Special Agents of the United States Environmental Protection Agency. Assistance with this case has been provided by the New York State Office of General Services, the Binghamton City Engineer, and the Binghamton-Johnson City Publically Owned Treatment Works. The case is being prosecuted by Assistant United States Attorney Craig Benedict. Questions may be directed to AUSA Benedict at 315-391-1110.
Rutland Man Pleads Guilty to Heroin ConspiracyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that Nicholas Louras, 28, of Rutland, Vermont, has pled guilty in federal court to a charge of conspiring to distribute heroin in the Rutland, Vermont area from November 2013 to March 2014. Louras appeared today before Chief Judge Christina Reiss in United States District Court in Burlington. Judge Reiss accepted the plea of guilty and released Louras on conditions, including that he continue with his drug rehabilitation program.
Judge Reiss scheduled Louras’ sentencing for January 9, 2015 in Burlington. Under the terms of the plea agreement Louras faces a maximum possible term of imprisonment of twenty years but his sentence will ultimately be determined by Judge Reiss after completion of a pre-sentence investigation and report and consideration of the advisory U.S. Sentencing Guidelines. At the change-of-plea hearing Louras admitted to trafficking heroin in the Rutland, Vermont area. Louras also admitted that when he was stopped by New York State Police on March 17, 2014 in Albany County, New York with fourteen grams of heroin he was transporting those drugs back to Rutland, Vermont for distribution.
The United States is represented by Assistant U.S. Attorney Joseph Perella and the defendant is represented by Natasha Sen, Esq. This matter was investigated jointly by the Vermont State Police Drug Task Force, the FBI, the DEA, and the New York State Police.Rochester Man Sentenced on Gun Trafficking ChargesRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Paul Davis, 49, of Rochester, who was convicted of conspiracy to unlawfully deal firearms without a federal firearms license, selling firearms to a convicted felon, and being a felon in possession of a firearm, was sentenced to 72 months in prison by U.S. District Judge Frank P. Geraci, Jr. The defendant was also ordered to forfeit 10 firearms and over 500 rounds of ammunition.
Assistant U.S. Attorney Robert A. Marangola, who handled the case, stated that between August 2012 and February 6, 2013, Davis and Liddon Young conspired to unlawfully traffic firearms from the Atlanta, Georgia area to Rochester. Young supplied multiple firearms and rounds of ammunition from the Atlanta area to Davis, who then transported them and illegally resold them on the black market in Rochester.
Davis was arrested in Rochester on February 6, 2013 after selling a Georgia pistol to a confidential informant. Federal search warrants executed at Davis’s residence and business netted 10 firearms and several hundred rounds of ammunition. Young was arrested in Rochester on February 8, 2013 in possession of a loaded .380 caliber pistol. Federal search warrants executed at Young’s residences in Stone Mountain, Georgia resulted in the seizure of an additional firearm, hundreds of rounds of ammunition, a gun ledger, and other firearms trafficking paraphernalia.On June 25, 2014, Judge Geraci, Jr. sentenced Young to 15 years in prison for his role.
The sentencing is the culmination of an investigation on the part of on the part of Special Agents of the Bureau of Alcohol Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge James S. Higgins and the Rochester Police Department, under the direction of Chief Michael Ciminelli.Owner of Costa Rican Call Center Pleads Guilty <br /> to Defrauding Elderly Through Sweepstakes ScamRead the Press Release
A dual United States-Costa Rican citizen pleaded guilty today for his role in a $1.88 million sweepstakes fraud scheme that defrauded hundreds of elderly Americans.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Anne M. Tompkins of the Western District of North Carolina made the announcement.
Geoffrey Alexander Ramer, 34, of Costa Rica, pleaded guilty before U.S. Magistrate Judge David S. Cayer of the Western District of North Carolina to wire fraud and money laundering in connection with the telemarketing fraud scheme. Sentencing will be scheduled at a later date.
“Ramer preyed upon some of the most vulnerable members of our society, callously and repeatedly defrauding elderly Americans by stealing their life savings,” said Assistant Attorney General Caldwell. “We hope that today's guilty plea brings some solace to his victims. This prosecution sends a clear message to the next would-be con-artist: in protecting our citizens, the reach of the Justice Department will not stop at our country's borders.
“Ramer and his fellow con artists swindled their victims and pocketed people’s life savings,” said U.S. Attorney Tompkins. “If conscience is not enough to deter scammers from taking advantage of the elderly and vulnerable, the certainty that justice is coming should.”
According to his plea agreement, from 2008 through December 2013, Ramer owned and operated call centers located in Costa Rica. Ramer and his co-conspirators called U.S. residents, many of whom were elderly, and falsely informed them that they had won a substantial cash prize in a sweepstakes. The victims were told that in order to receive the prize, they had to send money to Costa Rica for a purported refundable insurance fee. After receiving the fee, Ramer and his co-conspirators contacted the victims again, and falsely informed them that the prize amount had increased and, therefore, the victims had to send additional money to pay for new purported fees. These attempts to collect additional money continued until the victims ran out of money or discovered the fraud. To mask that they were calling from Costa Rica, Ramer and his co-conspirators utilized VoIP phones that displayed a (202) area code, giving victims the false impression the calls were coming from Washington, D.C. Ramer often falsely claimed to be calling on behalf of a U.S. federal agency to lure victims into a false sense of security.
Plea documents state that, along with his co-conspirators, Ramer was responsible for causing more than $1.88 million in losses to hundreds of elderly Americans.
The case was investigated by the U.S. Postal Inspection Service, FBI, Internal Revenue Service – Criminal Investigation Division, Federal Trade Commission and the U.S. Department of Health and Human Services. This case is being prosecuted by Senior Litigation Counsel Patrick Donley and Trial Attorney William Bowne of the Criminal Division’s Fraud Section.Owner of Alpha Diagnostics Indicted for $7.5 Million Health Care Fraud SchemeRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted the owner of Alpha Diagnostics, Rafael Chikvashvili, age 67, of Baltimore, Maryland, on health care fraud and other charges related to a scheme to defraud Medicare and Medicaid of more than $7.5 million. The indictment was returned on September 11, 2014, and unsealed today. Chikvashvili had an initial appearance today in U.S. District Court in Baltimore and was released under the supervision of U.S. Pretrial Services.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to the indictment, Chikvashvili formed Alpha Diagnostics Services, Inc., which later became Alpha Diagnostics, LLC, in 1993, and always acted as Managing Member, Authorized Official, Managing Employee, President and Chief Executive Officer for Alpha Diagnostics. Chikvashvili holds a PhD in mathematics, but was never a medical doctor or licensed physician. Alpha Diagnostics was principally a mobile diagnostic medical service provider of X-rays, but also procured and transmitted mobile diagnostic ultrasound tests, electrocardiograms (“EKGs”), echocardiograms, and other medical tests. Alpha Diagnostics operated in Maryland, Delaware, Pennsylvania, Virginia and the District of Columbia.
The 12-count indictment alleges that beginning at least in 1997 through October 2013, Chikvashvili defrauded Medicare and Medicaid by creating false radiology, ultrasound and cardiologic interpretation reports; by submitting insurance claims for medical examination interpretations that were never completed by licensed physicians; by falsely representing to Medicare and Medicaid, as well as to treating physicians, that the interpretations had in fact been completed by actual licensed physicians; and by submitting insurance claims for radiology, ultrasound and cardiologic examinations (and their associated costs) that were never performed, and/or which were in excess of the number of examinations ordered by the treating physician.
Specifically, the indictment alleges that Chikvashvili instructed his non-physician employees to: perform interpretations of X-rays, medical tests, ultrasounds and cardiologic exams in lieu of licensed radiologists and physicians; draft a licensed “physician’s” examination report in the name of a licensed physician to which Chikvashvili caused a copy of the handwritten signature of the actual physician to be affixed to the report. The indictment alleges that the names and titles of physicians Chikvashili used were physicians who did not interpret the examinations, nor provide the medical findings to create the reports. If a patient caregiver contacted Alpha Diagnostics to question medical interpretations, Chikvashvili allegedly reassigned the test/examination to a licensed physician for a second interpretation without informing the licensed physician of the prior interpretation. In addition, Chikvashvili instructed a non-physician employee to represent that he was a physician while speaking with others on the phone.
According to the indictment, Chikvashvili and Alpha Diagnostics routinely submitted insurance claims to Medicare and Medicaid that, among other things, exaggerated the services performed by its technologists or exceeded the services ordered by the treating physician; overcharged for transportation costs; and falsely represented that Alpha Diagnostics was properly overseen by supervising physicians.
Finally, the indictment seeks forfeiture of at least $7.5 million, including two properties, luxury vehicles, bank and investment accounts, and a safe deposit box.
Chikvashvili faces a maximum sentence of 10 years in prison for health care fraud; a maximum of five years in prison for each of nine counts of making false statements; and a mandatory two years, consecutive to any other sentence imposed, for two counts of aggravated identity theft.
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 HHS-OIG and the FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Mark W. Crooks, who is prosecuting the case.
Omaha Man Sentenced to 15 Years in Prison for Possessing a Firearm while Conspiring to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that Steven Payment of Omaha, Nebraska, was sentenced on September 15, 2014, to 15 years in prison by United States District Judge Laurie Smith Camp. Payment had previously pled guilty for his involvement in a conspiracy to distribute multiple pounds of methamphetamine in Douglas and Sarpy Counties. Payment’s sentence was increased 5 years as he was found to have possessed a handgun during the course of the conspiracy. After serving his sentence, Payment will be required to serve a Term of Supervised Release of 5 years.
This case was the result of an investigation by the Sarpy County Sheriff’s Office.
Oil Company Charged with Felony Clean Water Act ViolationRead the Press Release
U.S. Attorney Kenneth Polite announced today that XPLOR ENERGY SPV-1, INC. (“XPLOR”), an Oklahoma corporation located in Southlake, Texas, was charged today in a one-count bill of information with knowingly violating the Clean Water Act, Title 33, United States Code, Section 1319(c)(2)(A), in connection with their oil and gas production activities in the Breton Sound Area of the Gulf of Mexico.
According to the bill of information, from on or about October 1, 2009, and continuing through November 18, 2011, in the navigable waters of the United States and within the Eastern District of Louisiana, XPLOR., by and through its agents and employees acting within the scope of their agency and employment and for the intended benefit of the defendant, did knowingly discharge and cause to be knowingly discharged a pollutant, namely, produced water containing oil, from a point source (injection lines and disposal wells attached to the MP 35 Platform) into a water of the United States without a permit.
The case was investigated by the Criminal Investigation Division of the United States Environmental Protection Agency (“EPA-CID”) and the Criminal Investigation Division of the Louisiana Department of Environmental Quality (“DEQ-CID”). The case is being prosecuted by Assistant United States Attorney Matthew Coman.
(Download Bill of Information )
Newman Drug Organization Member Sentenced for Illegal Gun PossessionRead the Press Release
Huntington W.Va – United States Attorney Booth Goodwin announced today that William Petties, 33, of Huntington, West Virginia, was sentenced in federal court in Huntington to three years and ten months in federal prison on a charge of felon in possession of a firearm. On January 20, 2014, agents with the United States Drug Enforcement Administration searched the home of Petties’ girlfriend at 1130 28th Street in Huntington. Petties, who regularly stayed at the home, was outside when agents arrived with the search warrant. The search uncovered a loaded Springfield .40 caliber pistol, which was owned by Petties’ girlfriend, but which Petties admitted he jointly possessed and controlled. Petties was convicted in 2000 of aggravated robbery and is prohibited from possessing any firearm.
Petties is a former member of the drug trafficking organization operated by Kenneth Dewitt Newman, also known as “K-Kutta.” The investigation of the Newman Organization established that Newman, along with others, distributed cocaine, heroin, MDMA, marijuana, and prescription pills in the Huntington area.
This case was investigated by the United States Drug Enforcement Administration, and is being 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 U.S. 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.
Newington Man Admits Operating Extensive Mortgage Fraud SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FILIPPOS MILIOS, also known as Filip Milios, 55, of Newington, pleaded guilty today before U.S. Magistrate Judge Donna F. Martinez in Hartford to conspiracy and money laundering offenses stemming from his role in a mortgage fraud scheme that involved dozens of Connecticut properties.
According to court documents and statements made in court, from approximately June 2005 to July 2010, MILIOS and others conspired to defraud banks and mortgage lenders in obtaining dozens of mortgages for the sale of properties owned by MILIOS and others. The conspiracy involved the use of straw borrowers, false mortgage applications, false HUD-1 forms and fraudulent down payments in connection with the purchase of nearly 50 houses primarily located in Hartford, New Haven and Middlesex counties.
As part of the scheme, MILIOS purchased properties, either in his own name, in a limited liability corporation in which he had an interest, or in the name of a co-conspirator. MILIOS and others then recruited borrowers to purchase these properties. Unbeknownst to the lenders who extended mortgages to the borrowers, MILIOS and his co-conspirators submitted fraudulent documents in connection with the loan applications, including false HUD-1 forms, employment verification letters and rental verification letters.
MILIOS also made the down payments on behalf of the borrowers who were recruited to purchase the properties. Attorney Gabriel Serrano, who served as a closing attorney for most of the fraudulent transactions, often released the seller’s proceeds checks from closing to MILIOS before receiving the down payment, and MILIOS used the seller’s proceeds checks to purchase the down payment check for the same transaction. MILIOS also failed to disclose to mortgage lenders that he paid money to borrowers, mortgage brokers, and recruiters.
In pleading guilty, MILIOS also admitted that he engaged in a money laundering conspiracy with Serrano. The conspiracy involved Serrano’s disbursing the fraudulently-obtained loan proceeds to the private lenders who had loaned MILIOS money when he originally purchased the properties.
Lenders lost a total of approximately $5.6 million as a result of this scheme.
MILIOS pleaded guilty to one count of conspiracy to commit mail and bank fraud, which carries a maximum term of imprisonment of 30 years, and one count of conspiracy to commit money laundering, which carries a maximum term of imprisonment of 10 years. He is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on December 8, 2014.
MILIOS was originally charged by criminal complaint in January 2013. He has been detained since March 20, 2014, when his bond was revoked.
On August 6, 2013, Serrano also pleaded guilty to one count of conspiracy to commit mail and bank fraud, and one count of conspiracy to commit money laundering. He awaits sentencing.
This case is being investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Internal Revenue Service – Criminal Investigation Division, the United States Postal Inspection Service and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys David T. Huang and William J. Nardini.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
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[email protected]Monroe County Woman Pleads Guilty to Participating in A Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 33-year-old Effort woman pleaded guilty today before Senior U.S. District Court Judge A. Richard Caputo to conspiring with others to distribute heroin in the Monroe County area during a six-month time period.
According to United States Attorney Peter Smith, the defendant, Tamika Davis, admitted to committing the crime between November 2013 and April 22, 2014.
Davis was charged in a criminal Information filed by the United States Attorney on August 15, 2014, following an investigation by the Federal Bureau of Investigation and the Pennsylvania State Police.
Davis faces a potential maximum sentence of 20 years in prison and a $1 million fine. Judge Caputo scheduled sentencing in the case for December 17, 2014.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Monroe County Man Pleads Guilty to Heroin TraffickingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 21-year-old Tobyhanna man pleaded guilty today before Senior U.S. District Court Judge James M. Munley to distributing heroin in the Monroe County area between November 2013 and August 2014.
According to United States Attorney Peter Smith, the defendant, Kyle Westry, admitted to distributing and possessing with intent to distribute multiple bricks of heroin. A brick of heroin consist of 50 small bags.
Westry was charged in a criminal Information filed by the United States Attorney on September 10, 2014, following an investigation by the Drug Enforcement Administration and the Monroe County Drug Task Force.
Westry faces a potential maximum sentence of 20 years in prison and a $1 million fine. Judge Munley scheduled sentencing in the case for December 16, 2014.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
****Mexican National Sentenced for Meth DistributionRead the Press Release
POCATELLO – Juan Ramon Yuen-Rodriguez, 29, of Sinaloa, Mexico, was sentenced today to 210 months in prison, followed by five years of supervised release for distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered to pay a $500 fine. Yuen-Rodriguez pleaded guilty to the charge on May 24, 2014.
According to the plea agreement, on various dates, including August 14, 2013, Yuen-Rodriguez agreed with an undercover officer to deliver methamphetamine to an undercover officer in Heyburn, Idaho. While driving to the meeting, Yuen-Rodriguez, along with co-defendant Jose Felix-Burgos, were stopped by law enforcement. In a box in the back seat of the vehicle officers found 2024 grams of actual methamphetamine. At sentencing Judge Winmill commented that part of the reason for the sentence imposed was that he believed Yuen-Rodriguez’ sole purpose for coming to the United States was to sell large quantities of drugs. Co-defendant Felix-Burgos is scheduled to be sentenced October 7, 2014.
The case was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration, in conjunction with, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Canyon County Narcotics Unit, Meridian Police Department, Ada County Sheriff’s Office, Idaho State Police, and the Mini-Cassia Drug Task Force.
The OCDETF program is a federal multi agency, multi jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Maryland Skilled Nursing Facility Agrees to Pay $1.3 Million to Resolve Allegtions That It Submitted False Claims for Rehabilitation TherapyRead the Press Release
Boston, MA – Episcopal Ministries to the Aging, Inc. (EMA), an Eldersburg, Md. based company that operates William Hill Manor, a skilled nursing facility in Easton, Md., has entered into an agreement to pay $1.3 million to resolve allegations that it submitted false claims for rehabilitation therapy purportedly provided by RehabCare Group East, Inc. (RehabCare), a subsidiary of Kindred Healthcare, Inc.
“Patients in nursing homes should not be left to wonder whether the therapy they receive is based on their own clinical needs, or is instead tied to the financial targets of the companies providing their care,” said Carmen M. Ortiz, United States Attorney for the District of Massachusetts. “This settlement, like others recently announced by this office, makes it clear that when a skilled nursing facility contracts with an outside rehabilitation therapy provider, the facility remains responsible for ensuring that its patients are receiving, and Medicare is paying for, reasonable and necessary care.”
This settlement resolves allegations that EMA submitted false claims to Medicare that sought inflated amounts of reimbursement based on the provision of unreasonable or unnecessary rehabilitation therapy that was dictated by financial considerations rather than patient needs.
In January 2010, William Hill Manor hired RehabCare to provide rehabilitation therapy at its facility. As with the prior settlements involving facilities that hired RehabCare, the United States alleges that EMA and William Hill Manor failed to prevent RehabCare from engaging in a pattern and practice of providing high levels of therapy that were not reasonable or necessary during so-called “assessment reference periods.” EMA billed Medicare patients at the highest therapy reimbursement level, and then provided less therapy to those same patients outside the assessment reference periods, when the facility was not required to report to Medicare the amount of therapy RehabCare was providing to its patients. In that way, RehabCare, EMA, and William Hill Manor “ramped up” Medicare patients’ therapy minutes when it served to maximize the reimbursement rate and correspondingly reduced the patients’ therapy minutes, regardless of patient need, when the time spent on that therapy would not affect the Medicare reimbursement rate. The government alleges that, as a result of RehabCare’s practice of “ramping,” EMA frequently billed Medicare for its patients’ care at the highest therapy-based levels, even though the patients frequently were not receiving therapy at those levels.
This settlement further resolves allegations that EMA and William Hill Manor failed to prevent other RehabCare practices designed to inflate Medicare reimbursement, including: (1) presumptively placing patients in the highest reimbursement level unless it was shown that the patients could not tolerate that amount of therapy, rather than using individualized evaluations to determine the level of care most suitable for each patient’s clinical needs; (2) providing the minimum number of minutes of therapy required to bill at the highest reimbursement level while discouraging the provision of therapy in amounts beyond that minimum threshold, despite the Medicare requirement that the amount of care provided be determined by patients’ clinical needs; (3) arbitrarily shifting the number of minutes of planned therapy between different therapy disciplines to ensure targeted reimbursement levels were achieved; (4) providing significantly higher amounts of therapy on the final day of an assessment reference period in order to achieve the minimum level of therapy necessary to achieve the highest RUG level; and (5) reporting estimated or rounded minutes instead of reporting the actual minutes of therapy provided.
“Patient need must dictate the provision of Medicare benefits rather than the fiscal interests of providers,” said Assistant Attorney General Stuart F. Delery for the Justice Department’s Civil Division. “Today’s settlement demonstrates the department’s continued commitment to safeguarding both Medicare beneficiaries and taxpayer dollars by holding accountable all entities involved in billing for unnecessary services, including those that did not directly provide the unnecessary services.”
This announcement follows a $3.75 million settlement announced by this office and the Department of Justice on Sept. 5, 2014, which arose out of a related investigation involving two other skilled nursing facilities that allegedly retained RehabCare to provide rehabilitation therapy and then failed to prevent RehabCare from engaging in the practices described above in an effort to inflate amounts of Medicare reimbursement.
This matter was investigated by the Department of Health and Human Services, Office of the Inspector General, and the Federal Bureau of Investigation. The case was handled by District of Massachusetts Assistant United States Attorneys Gregg Shapiro and Patrick Callahan and Department of Justice Trial Attorneys Christelle Klovers and Rohith Srinivas.
Manatee County Man Charged for Attempting to Entice MinorsRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that William Daniel Thompson (67) was arrested on September 11, 2014, for attempting to persuade, induce, and entice a minor to engage in illicit sexual conduct. Thompson faces a minimum penalty of 10 years, up to a maximum penalty of life in federal prison. Thompson made his initial appearance in federal court on September 12, 2014. He is being detained pending trial.
According to the criminal complaint, on September 10, 2014, an FBI special agent noticed an advertisement in the “all personals” section of Craigslist, which made reference to a single white male seeking a “family dynamic.” Between September 10, 2014, and September 11, 2014, Thompson engaged in e-mail communications with the undercover agent, who was posing as the father of a 10-year-old girl and 13-year-old boy. During the online communications, Thompson told the undercover agent that he wanted to engage the minors in sexual conduct.
On September 11, 2014, Thompson traveled to Altamonte Springs where he had arranged to meet the father of the minors for the purpose of engaging in illicit sexual conduct, at which time he was arrested. During an interview with law enforcement, Thompson admitted that he had traveled to the location for the purpose of meeting the father of the two children with whom he had been e-mailing. Thompson stated that his purpose in going to Altamonte Springs was to explore the possibility of having sex with a 10-year-old girl. The investigation revealed that Thompson has been involved in the bondage, dominance, sadomasochistic lifestyle for about ten years.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
A complaint is merely a formal charge that a defendant has committed a violation of federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Liberty Man Pleads Guilty to Conspiracy to Sell False ID Documents to Illegal AliensRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Liberty, Mo., man pleaded guilty in federal court today to his role in a conspiracy that produced and sold thousands of false identification documents to illegal aliens.
Cesar Mujica-Aranda, 25, a citizen of Mexico residing in Liberty, pleaded guilty before U.S. District Judge Dean Whipple to the charge contained in a March 20, 2014, federal indictment.
By pleading guilty today, Mujica-Aranda admitted that he managed the production of counterfeit identification documents at his Liberty apartment from Sept. 1, 2013, to Feb. 21, 2014. He managed the production of the false identification documents and sold the documents to numerous street level dealers. The street dealers would typically pay approximately $50 for each counterfeit identification document and they would keep any excess proceeds they were able to obtain from the sale of the counterfeit documents.
Mujica-Aranda produced fraudulent Lawful Permanent Resident cards, counterfeit Social Security cards, and false driver’s licenses from various states within the United States as well as Mexican states. Conspirators produced and sold thousands of false identification documents to illegal aliens so that the illegal aliens could stay and work within the United States.
On Jan. 30, 2014, Mujica-Aranda threw away a white plastic bag containing shredded pieces of fraudulent identity documents in a trash can at a gas station at St. John Avenue and Belmont in Kansas City, Mo. Early the next morning, a federal agent located the bag in the trash can. The bag contained shredded pieces of fraudulent identification documents, and weighed approximately two pounds. Each piece was approximately the size of a small paper clip, and the shredded pieces were immediately recognizable as fraudulent Lawful Permanent Resident cards, Social Security cards, Missouri non-driver’s licenses and Kansas identification cards. The agent also discovered two reels of depleted color card printer ribbon within the shredded pieces. One reel had images of fraudulent Lawful Permanent Resident cards. Mujica-Aranda’s fingerprints were on items contained in the bag.
Under the terms of today’s plea agreement, Mujica-Aranda must pay a money judgment for the total amount of money that was obtained by this fraudulent identification document enterprise. The Department of Homeland Security is still evaluating ink ribbons that were seized as part of the investigation and has already identified thousands of identification documents that were produced by the conspiracy. By the time of sentencing, the government may have a better estimate on how many identification documents it can establish were produced by the conspiracy. The Court may elect to multiply this number by how much the conspiracy was selling the false documents to aliens. By Mujica-Aranda’s own admission, the documents were sold for no less than $100 per document.
Mujica-Aranda must also forfeit to the government all of the equipment that was used to produce fraudulent identification documents, including three computers, a computer hard drive, printers, four cameras, six cell phones, electronic storage devices and other miscellaneous equipment and supplies, and $1,840.
Under federal statutes, Mujica-Aranda is subject to a sentence of up to 15 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 Special Assistant U.S. Attorney William A. Alford III. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Social Security Administration, Office of the Inspector General, the Kansas Department of Revenue – Office of Special Investigations, the Missouri Department of Revenue – Compliance Investigation Bureau and the Clay County, Mo., Prosecuting Attorney’s Office.
Leader of Oxnard Street Gang and Mexican Mafia Associate Found Guilty of Federal Drug and Gun Trafficking ChargesRead the Press Release
LOS ANGELES – Capping the second phase of Operation “Supernova” – which was a multiagency investigation into Ventura County’s largest street gang – the leader of the Oxnard-based Colonia Chiques street gang has been found guilty of a host of criminal charges, including operating a continuing criminal enterprise.
In a verdict that was issued by a federal jury after 9:00 on Friday night, Luis Manuel Tapia, the leader of the Colonia Chiques and a validated associate of the Mexican Mafia prison gang, was found guilty of each of the 26 federal charges filed against him.
As a result of the convictions, Tapia, 37, of Ojai, faces four mandatory life sentences – plus an additional, consecutive 55 years – when he is sentenced by United States District Judge Otis D. Wright II on December 15.
The evidence presented during a two-week trial in federal court in Los Angeles showed that Tapia was deeply involved in the business of running the Colonia Chiques and was personally involved in the sale of firearms and narcotics. During a series of secretly recorded meetings with Tapia, he described himself as the “CEO” of his enterprise, comparing it to Walmart because he supplied a wide array of contraband and always guaranteed his product’s quality. Indeed, one $200,000 drug transaction in October 2011 involved approximately 10 pounds of nearly pure methamphetamine.
During the investigation, authorities conducted an undercover operation in Las Vegas in which an undercover FBI agent posed as a senior member of the Italian mob and negotiated to have Tapia supply the Las Vegas syndicate of the Italian mob with up to 20 pounds of highly pure methamphetamine every month.
The jury also heard Tapia, in a video recording, bragging that his heroin was so strong that it had “killed six people” – and that this was a “good advertisement” for his drug operation. Tapia also explained how his high-quality methamphetamine – which lab results confirmed was often 100 percent pure – was obtained from Mexican drug cartels. In another video recording, Tapia was heard directing a large assembly of younger Colonia Chiques gang members to monopolize their drug selling territory, to seek out and violently expel or attack informants, and to heed the directives of the Mexican Mafia.
At another stage of the investigation, authorities seized 2.5 pounds of heroin, over 9 ounces of cocaine, 9.6 ounces of methamphetamine, cash and two loaded firearms inside a hidden trap in a car owned by Tapia.
Tapia was specifically found guilty of leading a continuing criminal enterprise that distributed at least 1,000 grams of methamphetamine, conspiracy to distribute controlled substances, conspiracy to engage in the business of dealing in firearms without a license, 10 substantive counts of drug distribution (involving heroin, methamphetamine, and cocaine), three counts of possession of a firearm in furtherance of a drug trafficking crime, seven counts of being a felon in possession of a firearm, and the illegal transfer of a fully-automatic machinegun. Counting the machinegun, investigators seized 19 firearms from Tapia, including an AR-15 assault rifle, a custom built AK-47 with a bayonet, and a pistol grip sawed-off shotgun.
Four of Tapia’s co-defendants – Diana Zamora, Edgar Aguilar, Roger Armendariz and Jaime Cardenas – have pleaded guilty to conspiring traffic narcotics and/or firearms and have received sentences of up to 10 years in federal prison. An unknown male, known only as “Pancho,” who allegedly supplied narcotics to Tapia, is a fugitive believed to be in Mexico.
In the first part of Operation Supernova (see: http://www.justice.gov/archive/usao/cac/Pressroom/2011/018.html) federal prosecutors convicted 11 defendants who have received sentences of up to 25 years in prison.
The Supernova investigation was conducted by the Ventura County Federal Violent Crimes Task Force, which is comprised of agents with the Federal Bureau of Investigation and officers with the Oxnard Police Department.
Release No. 14-118
Leader of Multi-Million Dollar Foreclosure Rescue Scheme ConvictedRead the Press Release
SACRAMENTO, Calif. — After a one-day bench trial on stipulated facts, United States District Judge Troy L. Nunley found Alan Tikal, guilty today of 11 counts of mail fraud and one count of money laundering, United States Attorney Benjamin B. Wagner and California Attorney General Kamala D. Harris announced.
According to evidence presented at trial, between January 7, 2010, and August 20, 2013, Tikal 46, of Brentwood, in Contra Costa County, California, operated a business known as KATN. Tikal and his associates targeted homeowners experiencing difficulties making their monthly mortgage payments, many of whom did not speak English, and promised them that their outstanding mortgage debt would be reduced by 75 percent, falsely claiming he was a registered private banker with access to an enormous line of credit and the ability to pay off homeowners’ mortgages in full. Tikal told homeowners that in return for various fees and payments, their existing loans would be paid in full, and the homeowners would then owe new loans to Tikal that would be only 25 percent of the original loan.
In fact, there was not a single instance in which a homeowner’s debt was paid, forgiven or otherwise extinguished as a result of the mortgage relief program. All of the purported “loan” payments paid to Tikal were simply spent by himself, his family and his associates for personal use. Tikal and his associates convinced more than 1,000 homeowners in California and other states to participate in the program. Relying on the misrepresentations made by Tikal, many of these homeowners stopped making payments on their existing mortgages and lost their homes to foreclosure. Those homeowners paid more than $5,800,000 in fees and monthly payments into the program. Of that, more than $2,500,000 was paid into accounts controlled by Tikal and his family.
“The financial crisis that hit our communities so hard made it very difficult for many of our citizens to make ends meet,” said U.S. Attorney Wagner. “Alan Tikal cynically took advantage of their desperation for his own profit, stealing payments meant to preserve family homes. We are gratified by the Court’s guilty verdict.”
“As California recovers from the foreclosure crisis, financial scams continue to target vulnerable homeowners,” said California Attorney General Kamala D. Harris. “These predators robbed innocent families of their life savings and their piece of the American dream. I congratulate our California Mortgage Fraud Strike Force and the U.S. Department of Justice for their fine work in bringing these individuals to justice.” “Tikal exploited the financial crisis by setting out to hurt others and profit from that hurt, and he accomplished his mission through his crime,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “Homeowners struggling to keep their heads above water paid Tikal thinking they were getting their mortgages modified, foregoing the chance to obtain a real mortgage modification through HAMP, the TARP housing program. Even after SIGTARP agents arrested Tikal, from his jail cell, Tikal continued to run the scheme that stole $5.8 million from homeowners and fraudulently stalled foreclosure proceedings by TARP banks. SIGTARP stands united with our partners like U.S. Attorney Ben Wagner, his team of prosecutors, and Maggy Krell, the terrific prosecutor from the California Attorney General’s office.”
“The defendant preyed on struggling and trusting homeowners”, said José M. Martínez, Special Agent in Charge, IRS-Criminal Investigation. “The impact on homeowners and communities is devastating. While the conviction cannot reverse the damage caused by this defendant, it highlights the ongoing commitment of IRS-CI to hold accountable those involved in these types of crimes.”
This case is a joint prosecution by the United States Attorney’s Office for the Eastern District of California and the California Attorney General’s Office. It is the product of investigation by the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), Internal Revenue Service - Criminal Investigation, the California Department of Justice, and the Stanislaus County District Attorney’s Office. Assistant United States Attorney Philip Ferrari and California Deputy Attorney General Maggy Krell are prosecuting the case.
Co-defendants Tamara Tikal and Ray Kornfeld have previously pleaded guilty and are awaiting sentencing.
Tikal, who has been incarcerated pending these charges since his arrest in September of 2012, is scheduled to be sentenced by Judge Nunley on December 11, 2014. Tikal faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Kamiah Man Sentenced for Assaulting A DeputyRead the Press Release
COEUR D'ALENE - Paul Lee Oatman, 33 of Kamiah, Idaho, was sentenced to 36 months in prison, followed by three years of supervised release for assault resulting in serious bodily injury, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Oatman to pay $25,719 in restitution and serve 100 hours of community service. He was found guilty by a jury on June 26, 2014.
According to court documents, on July 13, 2013, the defendant assaulted a Kamiah Marshal and fractured his jaw in two places. The marshal was attempting to arrest a friend of the defendant, when the defendant interfered and struck the marshal in the jaw.
“Today’s sentence sends the clear message that violent interference with a law enforcement officer engaged in his public safety duties will not be tolerated,” said Olson. “All persons have a duty to comply with a law enforcement officer's commands. I commend the hard work of prosecutors and staff from my office and the cooperative investigative work of the Nez Perce Tribal Police Department and the FBI.”
The case was investigated by Nez Perce Tribal Police, Idaho County Sheriff’s Department, Lewis County Sheriff’s Department and the Federal Bureau of Investigation.
Indictment Charges Kankakee Manwith Possessing 100 or More Marijuana Plants, Filing False Tax Returnsand Making False Bank StatementRead the Press Release
Urbana, Ill. – A Kankakee, Ill., man, David Aaron Neblock, 37, made his initial court appearance this afternoon following his arrest on Thursday, Sept. 11, 2014, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. A federal grand jury returned the five-count indictment on Sept. 10, that charges Neblock with possession of 100 or more marijuana plants with intent to distribute, filing false income tax returns for the 2010, 2011 and 2012 tax years, and making false statements to a financial institution. The indictment had remained sealed pending Neblock’s arrest and initial court appearance.
During today’s hearing, U.S. Magistrate Judge David G. Bernthal allowed Neblock’s release on electronic monitoring under the condition that Neblock remain detained until a telephone ‘land line’ has been established at Neblock’s residence. Trial in the case is scheduled on Nov. 18, before U.S. District Judge Sue E. Myerscough in Springfield.
The indictment alleges that on July 22, 2012, in Kankakee, Neblock possessed 100 or more marijuana plants with the intent to distribute. The indictment further alleges that Neblock falsely understated his adjusted gross income for tax years 2010, 2011, and 2012, by omitting other income he had earned, including income from the sale of narcotics. Neblock allegedly owes approximately $52,128 in federal taxes. Neblock is also charged with providing material false statements to a bank in 2009 to obtain a loan to purchase property.
If convicted, the mandatory minimum penalty for possession of 100 or more marijuana plants with the intent to distribute is five years in prison and up to 40 years. The maximum penalty for filing a false income tax return is up to 3 years in prison; the penalty for making false statements to a financial institution is up to 30 years in prison.
The case is being prosecuted by Supervisory Assistant U.S. Attorney Ronda H. Coleman. The charges are the result of investigation by the Kankakee Area Metropolitan Group; the Federal Deposit Insurance Corporation Office of Inspector General; and the Internal Revenue Service Criminal Investigation.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Houston Man Sentenced to 154 Months in Prison for Armed Robbery, Firearms ChargesRead the Press Release
LAKE CHARLES, La. – A Houston man was sentenced last week to 154 months in prison for robbing from a Roanoke drug trafficker, U.S. Attorney Stephanie A. Finley announced today.
Francisco Javier Camacho, 42, of Houston, was sentenced Thursday by U.S. District Judge Patricia Minaldi to 70 months in prison for one count of interference with commerce by robbery and 84 months for one count of use and carrying of a firearm during a crime of violence with the prison terms to be served consecutively. He is also to serve five years of supervised release.
According to evidence presented at the November 1, 2012 guilty plea, Camacho and an accomplice, Cruz Martinez-Encinas, visited the home of a known drug trafficker on February 15, 2011 in Roanoke, La., saying they wanted to sell marijuana. Instead of selling illegal drugs, the two men robbed the drug trafficker, stealing three guns and $7,500 in cash. Camacho and Martinez-Encinas tied up the drug trafficker and a female who was present at the home. They then fled the scene. The two were able to free themselves, and the drug trafficker followed the two men onto Interstate 10. While chasing the men by car in between the Welsh, La., and Roanoke exits, the drug trafficker rammed the back of the car that Camacho was traveling in, which caused Camacho’s vehicle to run off the road and crash. Camacho and Martinez-Encinas exited the vehicle and ran north. They were later arrested. While in pursuit, law enforcement found four semi-automatic pistols. They also found $7,500 on Camacho when he was apprehended.
Martinez-Encinas pleaded guilty September 1, 2011. He was sentenced to 65 months in prison for possession of a stolen firearm and 65 months in prison for interference with commerce by robbery. He was also sentenced to serve three years of supervised release for each count. The sentences are to be served concurrently.
The FBI, ATF and the Jefferson Davis Parish Sheriff’s Office investigated the case. Assistant U.S. Attorney Joseph Mickel prosecuted the case.Hephzibah Man Sentenced to 30 Years for Sexually Exploiting A MinorRead the Press Release
Augusta, GA: Rahmad Ali James, 37, of Hephzibah, Georgia, was sentenced last week by United States District Court J. Randal Hall to 30 years in prison, followed by supervised release for 10 years, for the Sexual Exploitation of a Minor through the production of child pornography. James pled guilty to the charge in May 2014.
United States Attorney Edward Tarver said, “The protection of our children is, and should be, a priority to which the Department of Justice takes swift and aggressive enforcement action. This defendant exploited a child entrusted to his care by molesting her and photographing her, and then posting those images on the Internet in violation of numerous federal laws. Lengthy sentences like the one imposed here help protect our children from predatory acts, and serve to deter others from engaging in similar conduct.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The lengthy prison sentence handed down today reflects the serious nature of the crimes committed in this case. The FBI will continue to provide extensive investigative resources in getting such child predators as Rahmad James off of our streets.”
Evidence presented during the guilty plea and sentencing hearings revealed that James, while living in the Atlanta area, molested a girl who lived in the same house where he was staying. The molestation occurred when the girl was between the ages of 8 and 15. James photographed the molestation, and after returning to Hephzibah, uploaded those and other child pornography images onto an international website in order to receive similar-type images from others. After executing a federal search warrant at James’s Hephzibah residence in February 2014, officers and agents located a large collection of child pornography on various forms of computer media belonging to James. James was immediately arrested, and was thereafter indicted and charged with four counts involving the production of child pornography, and five counts of distributing child pornography. He has remained in custody since February 2014.
The arrest in this case was accomplished through the efforts of members of the FBI’s Metro Atlanta Child Exploitation Task Force and its Computer Crime Child Exploitation Task Force (MATCH/CCCX) made up of agents and officers of the FBI, Georgia Bureau of Investigation, Richmond County Sheriff’s Office and Columbia County Sheriff’s office. This case was prosecuted as part of Project Safe Childhood, which is a nationwide U. S. Department of Justice initiative designed to protect children from online exploitation and abuse. Led by the United States 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 to identify and rescue victims.
Assistant United States Attorney Nancy Greenwood, Deputy Criminal Chief in the Augusta U. S. Attorney’s Branch Office and Project Safe Childhood Coordinator, prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.Gloucester Sex Offender Sentenced to 25 Years for Child Pornography ProductionRead the Press Release
BOSTON – A Level III sex offender was sentenced today for production of child pornography.
Mark Pallazola, 38, of Gloucester, was sentenced by U.S. District Judge William G. Young to 300 months in prison and 10 years of supervised release. In May 2014, Pallazola pleaded guilty to production and possession of child pornography.
On Nov. 19, 2012, federal agents received information that an online user of a photo sharing website had uploaded a series of non-pornographic images of a prepubescent child, with comments indicative of child exploitation. Law enforcement traced this posting to Pallazola at his residence in Gloucester.
The following day, law enforcement officers interviewed Pallazola and executed a search warrant. A preliminary review of the computers located at the residence was conducted and child pornography was located on Pallazola’s computer. Forensic analysis later revealed that Pallazola participated in sexual acts involving a young girl and recorded those acts. He also possessed thousands of other images of child pornography.
This was not Pallazola’s first conviction. In 2002, he was convicted of felonious sexual assault in Concord, NH, after having sexual contact with two girls under the age of 13.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The Massachusetts State Police and the Gloucester Police Department assisted with the investigation and arrest of Pallazola. The case was prosecuted by Eve A. Piemonte Stacey of Ortiz’s Major Crimes Unit.
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 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Owner of Defense Contracting Companies Charged with Mail Fraud and Violating Arms Export Control ActRead the Press Release
TRENTON, N.J. – The former owner of two New Jersey defense contracting businesses was charged with mail fraud and violating the Arms Export Control Act, U.S. Attorney Paul J. Fishman announced today.
Alper Calik, 38, of Ankara, Turkey, was arrested upon his entry into the United States on Sept. 13, 2014 and charged by complaint with two counts of mail fraud, in connection with allegedly fraudulent contracts entered into with the U.S. Department of Defense (DoD), and one count of violating the Arms Export Control Act, in connection with his download of thousands of military technical drawings while outside the United States without prior approval from the U.S. Department of State. He is scheduled to make his initial court appearance later today before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court.
According to the complaint:
Starting in November 2009, Calik was the co-owner of Clifmax LLC in Clifton, New Jersey. The company contracted with DoD to supply defense hardware items and spare parts. Starting in May 2011, Calik started a second defense-contracting company, Tunamann LLC, based at the same address in Clifton. Both Clifmax and Tunamann were allegedly “shell” companies for manufacturing facilities in Turkey, created to obtain DoD contracts that the manufacturers were not permitted to receive. Calik, on numerous occasions, falsely claimed to the DoD that Clifmax and Tunamann were U.S.-based manufacturers, when, in fact, neither company ever had any manufacturing capabilities in the United States.
From November 2009 to March 2011, Calik allegedly defrauded the DoD by electronically submitting fraudulent bids for DoD contracts stating that he would provide parts manufactured in the United States when the items were, in fact, manufactured in Turkey. On Feb. 17, 2010, Calik submitted a false bid to the DoD for a contract to provide 121 parts known as “gear, spur,” an item used in the “steer section and brake” of the Amphibious Assault Vehicle. Calik claimed that Clifmax was a manufacturer and that the parts would be manufactured in the United States. Only U.S.-based contractors were eligible to obtain that contract. Based on Calik’s false bid, Clifmax was awarded the contract, valued at $50,215. Shipping records showed that the parts were shipped from Turkey to Clifmax’s address on July 20, 2014. The parts were subsequently provided to the DoD on July 25, 2014. The DoD paid Clifmax $49,913.71 for the foreign manufactured parts. Subsequent testing by the DoD revealed that the parts had dimensional non-conformances and were unusable.
Calik is also charged with violating the Arms Export Control Act. For both Clifmax and Tunamann, Calik submitted Military Critical Technical Data Agreements in which he claimed his companies were U.S.-based manufacturers. Calik also acknowledged that he understood export control laws and agreed not to disseminate export-controlled data and technical drawings in a manner that would violate export control laws. Based on his false representations, Calik was granted electronic access to drawings and technical data subject to U.S. export control regulations. Beginning in 2009, Calik downloaded approximately one hundred thousand drawings, some of which were subject to U.S. export control regulations. Calik was not in the United States when the majority of the drawings were downloaded and he did not obtain export licenses from the U.S. Department of State.
On May 23, 2013, Calik, who at that time was operating Tunamann, downloaded from a DoD database the technical drawings for parts that go into the NSSN Class Submarine. Those drawings contained warnings stating that the export of the drawings to places outside the United States is restricted by the Arms Export Control Act. Calik was not in the United States when those drawings were downloaded and he did not obtain an export license from the U.S. Department of State for the export of those drawings.
Counts One and Two of the complaint, charging mail fraud, each carry a maximum penalty of 20 years in prison and a fine of $250,000. Count Three carries a maximum penalty of 20 years in prison and a $1 million fine.The Arms Export Control Act prohibits the export of defense articles and defense services without first obtaining a license from the U.S. Department of State and is one of the principal export control laws in the United States.
U.S. Attorney Fishman credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service Northeast Field Office, under the leadership of Special Agent in Charge Craig W. Rupert, and special agents of the Department of Homeland Security, Homeland Security Investigations, Counter Proliferation Investigations, under the supervision of Special Agent in Charge Andrew M. McLees, with the investigation leading to Calik’s arrest.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
14-324
Calik, Alper Complaint
Former Orange County Auctioneer Sentenced to 2 Years in Federal Prison After Pleading Guilty in Bribery SchemeRead the Press Release
Santa Ana, California – An Orange County auctioneer who defrauded banks by accepting bribes to lower the amount of winning bids in trustee auctions was sentenced today to 24 months in federal prison, announced Acting United States Attorney Stephanie Yonekura and Bill L. Lewis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office.
Reyna Peinado, 48, of Huntington Beach was sentenced this afternoon by United States District Judge Andrew J. Guilford.
According to a plea agreement filed in this case, Peinado conspired with a confederate – identified in court papers by the initials “S.F.” – in a scheme to defraud banks. During the scheme, which started in February 2012 and lasted for about three months, Peinado conducted real estate auctions on the steps of the Orange County Courthouse on behalf of a trustee known as Reliable Posting and Publishing (RPP), which represented banks which held title of the foreclosed properties. Peinado began the auctions with an opening bid for a property located in Orange County, and attendees would then call out bids, all of which the defendant would tally before declaring a winning bidder. Once the trustee sales were conducted, Peinado called in the sale price and used an overnight courier to send a receipt of funds and cashiers’ checks from the winning bidder to RPP, which posted the sale price on the website for the property.
At the conclusion of some of the trustee sales, Peinado contacted the winning bidder to solicit a bribe in order to reduce the purchase price of the property. In return for approximately $5,000 per property, Peinado reduced the sale price from between $15,000 to $57,000 less than the winning bid purchase price. By reducing the purchase price on seven properties, Peinado caused approximately $261,500 in losses to the banks.
This investigation was conducted by the Federal Bureau of Investigation.
Release No. 14-119
- Former Law Office Manager Sentenced in $3 Million Automobile Insurance Fraud Conspiracy
- Former Investor Relations Executive Charged with Insider Trading
Former College Student Pleads Guilty to Unregistered Possession of Ricin-Toxin Found Last Winter in His Dorm Room-Read the Press Release
WASHINGTON – Daniel Milzman, 19, of Bethesda, Md., pled guilty today to a federal offense stemming from the discovery of a plastic bag of lethal ricin in a dormitory room where he was staying while he was a student at Georgetown University.
The guilty plea was announced by U.S. Attorney Ronald C. Machen Jr., and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office.
Milzman pled guilty to a charge of unregistered possession of a biological agent or toxin. He appeared before the Honorable Ketanji Brown Jackson in the U.S. District Court for the District of Columbia. The plea agreement, which is contingent upon the Court’s approval, calls for a prison sentence falling somewhere within the range of a year and a day to two years of incarceration. Following the prison term, Milzman would be placed on three years of supervised release. He also is subject to financial penalties. Sentencing is scheduled for Nov. 10, 2014.
“Daniel Milzman put himself and others in danger by cooking up a deadly poison in his Georgetown dorm room,” said U.S. Attorney Machen. “Today Mr. Milzman owned up to his reckless behavior and acknowledged his crime before a federal judge. He is very lucky that none of his fellow students were hurt when he decided to manufacture this lethal substance.”
“The FBI, along with D.C. Fire and EMS, acted swiftly to respond to this dangerous situation, to investigate the origin of the ricin, which Mr. Milzman has admitted to possessing, and to assess any remaining potential risks to students on campus,” said Assistant Director in Charge McCabe. “Possessing lethal biological toxins such as ricin is illegal, and those who choose to engage in this risky activity will be prosecuted by our partners at the U.S. Attorney’s Office with the full resources of the FBI.”
According to a statement of offense submitted to the Court today, when law enforcement discovered Milzman’s ricin during the early morning hours of March 18, 2014, he was a student at Georgetown and shared a dormitory room in McCarthy Hall with a roommate.
Prior to law enforcement’s recovery of Milzman’s ricin, on the night of March 17, 2014, Milzman contacted a friend, a student Resident Advisor, and asked whether they could meet; subsequently, the two met in the friend’s dormitory room. When meeting with his friend, Milzman asked if they could have a “confidential” conversation. The Resident Advisor agreed.
During their conversation, Milzman produced a double-wrapped plastic bag containing an off-white powdery substance from his backpack and tossed it on the floor. He told the Resident Advisor that the bag contained ricin, and said that he had made the substance over a period of four days, while on a school break.
The Resident Advisor directly asked Milzman if he intended to use the ricin on another undergraduate student with whom the defendant had a previous personal relationship. Milzman simply shrugged. After Milzman left his friend’s dormitory room, law enforcement officials were notified of the possible presence of ricin in Milzman’s room.
In response to receiving information regarding the possible presence of ricin in Milzman’s dormitory room, on March 18, 2014, at about 2:30 a.m., members of the District of Columbia Department of Fire and Emergency Medical Services and law enforcement officers went to Milzman’s room.
Milzman was taken to a lobby on the first floor of the dormitory, where he voluntarily spoke with law enforcement officers. He admitted that he had made ricin and said that he had placed it in a plastic bag inside his desk. . A small plastic bag containing a powdery substance was located in Milzman’s desk drawer, exactly where Milzman had said it would be. When speaking with law enforcement, Milzman claimed that he intended to use the ricin on himself.
During the investigation, law enforcement confirmed that between Feb. 13 and Feb. 19, 2014, Milzman used key words when searching the Internet that are associated with ricin. Law enforcement also confirmed that from Jan. 1, 2014, through March 18, 2014, Milzman watched various episodes of the television show, “Breaking Bad;” in approximately 13 of the episodes, ricin was used as a weapon to injure or kill someone.”
According to calculations discussed in the Textbook of Military Medicine, Medical Aspects of Chemical and Biological Warfare, a publication of the U.S. Army, and in light of the tests performed on the ricin in this case, the ricin toxin produced by Milzman could have been lethal to an average person weighing 220 pounds, if either inhaled or injected.
Milzman has been in custody since his arrest last March.
In announcing the plea, U.S. Attorney Machen and Assistant Director in Charge McCabe commended the work of those who investigated the case from the FBI’s Washington Field Office. They also expressed appreciation for the assistance that was provided by the Metropolitan Police Department (MPD), the District of Columbia Department of Fire and Emergency Medical Services, the District of Columbia Department of Forensic Sciences; the Georgetown University Police Department; and the U.S. Department of Homeland Security’s National Bioforensic Analysis Center. They acknowledged the work of those who handled the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney David Mudd; Paralegal Specialist Rayneisha Booth; Legal Assistant Donice Adams, and former Summer Law Clerks Ryan Sellinger and Samantha Goldberg-Seder.
Finally, they commended the work of Assistant U.S. Attorneys Maia L. Miller and Frederick W. Yette, of the National Security Section, who are prosecuting the matter.
14-206Former Bank Officer Sentenced for Misallocation of Bank FundsRead the Press Release
First State Bank Vice President Made More Than $1.4 Million in Bad Bank Loans
Huntington, W.Va. – A former vice president of First State Bank in Barboursville, West Virginia was sentenced today to five years in federal prison and ordered to repay the bank $1,420,000 in misallocated funds announced United States Attorney Booth Goodwin. Jackie Cantley, 34, previously pleaded guilty on February 18, 2014.Cantley was a vice president at First State Bank responsible for commercial lending. Between January and September of 2012, Cantley authorized a series of loans, in excess of his lending authority, without making required disclosures about family and personal relationships among him and the borrowers. Cantley improperly authorized these loans without loan applications, adequate financial information or sufficient collateral to secure the loans. Cantley knew that the borrowers were not credit-worthy, but nonetheless authorized $1,420,000 in loans that the bank would not have approved had it been aware of Cantley’s actions. Cantley personally benefitted from at least one loan when proceeds were used to purchase a pizza business in which Cantley was a part owner.
This case was investigated by the Federal Deposit of Insurance Corporation (FDIC), the Federal Bureau of Investigation (FBI), and the United States Secret Service. Assistant United States Attorney Eumi Choi was responsible for the prosecution.
Former Art Gallery Employee Indicted with over $1 Million EmbezzlementRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Jeffrey Hall (48, Maitland) with five counts of mail fraud and three counts of wire fraud. If convicted, he faces a maximum penalty of 20 years in federal prison for each count. A trial has been scheduled for November 2014.
According to the indictment, Hall worked at a local art gallery that also had locations outside of central Florida. Over a period of at least 2 ½ years, Hall used his position at the gallery to embezzle over $1 million. He did this by diverting proceeds from the sale of artwork to his own personal bank accounts, or to a business account that belonged to him. The indictment further alleges that Hall used artwork of the gallery as loan collateral for himself, and sold some of the gallery’s artwork on eBay.
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 Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Roger B. Handberg.
Five Sentenced for Johnston County Area Cocaine (Crack) DistributionRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that JOANNE SESSION SMITH, 57, of Clayton, AL MACE, 33, of Smithfield, DWAYNE MAY, 47, of Selma, BRENDA RICHARDSON, 50, of Selma, and CHERIE SNEAD, 40, of Selma, were each sentenced resulting from their earlier guilty pleas to conspiracy to distribute and possess with intent to distribute 280 grams or more of cocaine base (crack). The charges involved a large scale narcotics ring responsible for selling kilos of crack from around January 1990 to December 21, 2011 in the Johnston County area.
All 5 defendants were sentenced by Senior United States District Judge Malcolm J. Howard. SMITH was sentenced to 168 months imprisonment; MACE was sentenced to 24 months imprisonment; MAY was sentenced to 168 months imprisonment; RICHARDSON was sentenced to 24 months imprisonment; and SNEAD was sentenced to 60 months imprisonment. All of these defendants will also be placed under supervised release for 5 years following their release from prison.
Assistant United States Attorney Jennifer E. Wells stated, “These sentences are a direct result of the diligent and thorough work of the Johnston County Sheriff’s Office. Our partnership with local agencies is an important part of our continued effort to protect the citizens of the Eastern District of North Carolina from long-time drug traffickers such as Ms. Smith.”
According to the investigation, In July 2011, the Johnston County Sheriff’s Office, initiated an investigation related to the distribution of cocaine base (crack). As a result of the investigation, JOANNE SESSION SMITH was identified as a drug trafficker and targeted for prosecution. Furthermore, the other four defendants listed above were identified as participants in SMITH’s drug organization. These individuals assisted SMITH by delivering crack. MAY also assisted the organization by providing protection. Specifically, MAY accompanied SMITH and other co-defendants during multiple drug transactions. After numerous controlled purchases, agents executed search warrants on SMITH’S residence which she shared with MAY, and on SNEAD’S residence and vehicle. Agents seized crack, cocaine, currency, and marijuana during these searches.
Based on the investigation, SMITH is responsible for distributing at least 284.415 kilograms of crack and 64.7 grams of cocaine. SMITH took crack orders from multiple buyers, converted cocaine into crack, packaged the crack for sale, and arranged the delivery of the drugs to the respective buyers.
In addition, SMITH maintained a premise for the purpose of distributing a controlled substance.Investigation of this case was conducted by the Johnston County Sheriff’s Office. Assistant United States Attorney Jennifer E. Wells is handling the prosecution for the government.
Final Defendant Sentenced in Scheme to Use Fresno Trucking Front to Smuggle Cocaine into CanadaRead the Press Release
FRESNO, Calif. — Canadian citizen Armitdeep Mann, 33, of Toronto, Canada, was sentenced today to five years and one month in prison by United States District Judge Anthony W. Ishii for conspiracy to distribute and possess with the intent to distribute cocaine, United States Attorney Benjamin B. Wagner announced.
According to court documents, between July 1, 2012, and September 21, 2012, Mann and others conspired to smuggle cocaine into Canada by concealing it in legitimate cargo. On September 21, 2012, agents followed one of Mann’s co-conspirators as he went to Los Angeles to deliver eight kilograms of cocaine. Law enforcement seized that cocaine and arrested Mann and additional defendants. A search warrant at the Los Angeles residence where authorities believed the eight kilograms of cocaine had been stored resulted in the seizure of an additional 40 kilograms of cocaine. Mann has been held in custody without bail since his arrest.
On April 7, 2014, co-conspirator Manjot Nanner, 32, of Fresno, was sentenced to one year and 10 months in prison, and on June 2, 2014, co-conspirator Vincent Rivaz-Felix, 29, of Los Angeles, was sentenced to four years and three months in prison for the conspiracy.
This case was the product of an investigation by the Organized Crime Drug Enforcement Task Force, the Drug Enforcement Administration, Fresno Police Department, and the Fontana and Vernon Police Departments. Assistant United States Attorney Kevin Rooney prosecuted the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.