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Thursday 11 September 2014
Former Defense Contractor Indicted for Illegally Exporting Military Blueprints and Defrauding U.S. Department of DefenseRead the Press Release
TRENTON, N.J. – The former owner of two New Jersey defense contracting businesses was indicted by a federal grand jury today for allegedly submitting fraudulent bids to the U.S Department of Defense (DoD) and disseminating military technical drawings to India without a license, U.S. Attorney Paul J. Fishman announced.
Hannah Robert, 49, of North Brunswick, New Jersey, was charged in a superseding indictment with one count of violating the Arms Export Control Act, one count of conspiracy to violate the act and four counts of wire fraud and one count of conspiracy to commit wire fraud. 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. Robert is currently under home detention pending trial.
According to the superseding indictment:
Robert was the founder, owner, and president of One Source USA LLC, a company located at her residence in Mount Laurel Township, New Jersey, and contracted with DoD to supply defense hardware items and spare parts pursuant to government contracts. Starting in September 2012, Robert opened a second defense-contracting company, Caldwell Components Inc., based at the same address in Mount Laurel Township.
Along with a resident of India identified only as “P.R.”, Robert owned and operated another company (One Source India) located in India that manufactured at its own facility defense hardware items and spare parts. From June 2010 to December 2012, Robert and P.R. allegedly conspired to defraud the DoD by electronically submitting fraudulent bids for DoD contracts, stating that they would provide parts manufactured in the United States, when in fact, the items were manufactured in India. One Source USA also subcontracted to other U.S. defense contractors, including those in Sussex County, New Jersey, and Boca Raton, Florida. Robert provided export-controlled items made in India to these defense contractors in such a way as to appear to the DoD that the items were manufactured in this country.
From June 2010 to December 2012, Robert also allegedly conspired to export defense blueprints to India without obtaining the necessary licenses from the U.S. Department of State. The exported technical drawings include parts used in the torpedo systems for nuclear submarines, military attack helicopters, and F-15 fighter aircraft.
In addition to United States’ sales, Robert and P.R. sold defense hardware items to foreign customers. Robert transmitted export-controlled technical data to P.R. in India so that Robert and P.R. could submit bids to foreigners, including those in the United Arab Emirates (UAE), to supply them or their foreign customers with defense hardware items and spare parts. Neither Robert nor P.R. obtained approval from the U.S. Department of State for this conduct.
On August 23, 2012, P.R. e-mailed Robert from India requesting the technical drawing for a particular military item. P.R.’s e-mail forwarded Robert an e-mail from an individual purporting to be “an official contractor of the UAE Ministry of Defence,” and who listed a business address in Abu Dhabi, UAE. The UAE e-mail requested quotations for a bid for the “blanket assembly” for the CH-47F Chinook military helicopter and listed the “End User” for the hardware item as the UAE Armed Forces. Later that same day, Robert replied to P.R.’s e-mail, attaching, among other things, the electronic file for an export-controlled technical drawing titled “Installation and Assy Acoustic Blankets, STA 120 CH-47F,” to be used in the Chinook attack helicopter.
Starting in October 2010, Robert transmitted the military drawings for parts to India by posting the technical data to the password-protected website of a Camden County, N.J., church where she was a volunteer web administrator. This was done without the knowledge of the church staff. Robert e-mailed P.R. the username and password to the church website so that P.R. could download the files from India. Through the course of the scheme, Robert uploaded thousands of technical drawings to the church website for P.R. to download in India.
On June 25, 2012, P.R. e-mailed Robert from India, stating: “Please send me the church web site username and password.” The e-mail was in reference to both an invoice to, and a quote for, an individual known to Robert as a broker of defense hardware items for an end-user in Pakistan. This individual (the “Pakistan trans-shipper”) employed a UAE address for shipping purposes. Later than day, Robert replied to this e-mail, providing a new username and password for the church website so that P.R. could download the particular defense drawings.
There were quality issues with the parts that Robert provided to the DoD. After the DoD in October 2012 disclosed the failure of certain parts used in the wings of the F-15 fighter aircraft, supplied by one of One Source USA’s American customers, Robert and P.R. provided the principal of that company with false and misleading material certifications and inspection reports for the parts. These documents, to be transmitted to the DoD, listed only One Source USA’s New Jersey address and not the address of the actual manufacturer in India, One Source India. As a result of the failed wing pins, the DoD grounded approximately 47 F-15 fighter aircraft for inspection and repair, at a cost estimated to exceed $150,000.
Robert was, until November 2012, an employee of a separate defense contractor in Burlington County, New Jersey, where she worked as a system analyst and had access to thousands of drawings marked with export-control warnings and to information on this defense contractor’s bids on DoD contracts. Robert misrepresented to her employer the nature and extent of her involvement with One Source USA.
Count One of the superseding indictment, charging conspiracy to commit wire fraud, carries a maximum penalty of 20 years in prison and a fine of $250,000. Counts Two through Five, charging substantive wire fraud, each carry a maximum penalty of 20 years and a fine of $250,000. Count Six, charging conspiracy to violate the Arms Export Control Act, is punishable by a maximum penalty of five years in prison and a $250,000 fine. Count Seven, charging a substantive violation of the Arms Export Control Act, is punishable by a maximum penalty of 20 years in prison and a $1 million fine. The superseding indictment also seeks forfeiture of Robert’s proceeds from the alleged criminal scheme.
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 the superseding indictment.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton, and L. Judson Welle of the U.S. Attorney’s Office National Security Unit.
The charges and allegations contained in the superseding indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
14-322
Defense counsel: David Schafer Esq., Lawrenceville, New JerseyRobert, Hannah, Superseding Indictment
Former Chicago Man Sentenced to 40 Years in Federal Prison for Sexually Abusing Two Girls and Producing Child PornographyRead the Press Release
CHICAGO ― A Mexican national who fled to Mexico, was arrested there, and agreed to extradition, was sentenced today to the maximum of 40 years in federal prison for sexually molesting two minor girls and producing child pornography. The defendant, EDGAR HERNANDEZ, 36, pleaded guilty earlier this year to one count each of manufacturing child pornography and possessing child pornography.
At a sentencing hearing today, one victim, who was 15 at the time, and a relative of the other victim, who was 7 at the time, told U.S. District Judge Samuel Der-Yeghiayan about the traumatic damage that Hernandez inflicted upon the victims’ lives. “The defendant scarred the victims for life,” Assistant U.S. Attorney John Kness argued in seeking a high sentence after the victim’s statements were presented.
Judge Der-Yeghiayan imposed the maximum sentence of 30 years in prison on the manufacturing count, to be served consecutively with the 10-year maximum term on the possession count. Hernandez is subject to deportation upon release from custody, but he was also ordered to remain under court supervision for 10 years, and he must serve at least 85 percent of his sentence. There is no parole in the federal prison system.
According to court records, Hernandez resided in a Chicago apartment and the 7-year-old victim was entrusted to his care and had a series of occasional overnight visits between September and December 2009. Hernandez engaged in sexual conduct with the victim on approximately a dozen occasions, and he used the digital video camera on his cellular telephone to make two video recordings of the sexual abuse in November 2009. The victim’s relative discovered the videos in December and contacted the Chicago Police Department, which began an investigation that was soon joined by the FBI. During the investigation, law enforcement discovered Hernandez’s sexual abuse of the 15-year-old victim, including additional video recordings.
Upon learning that the younger victim’s relative had reported his crimes to law enforcement, Hernandez fled to Mexico on Dec. 24, 2009, taking the older victim with him. That victim was reunited with her family in early 2010, but Hernandez remained a fugitive after he was charged. He was arrested in Mexico in April 2013 and was returned to Chicago last October after agreeing to summary extradition.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Garry McCarthy, Superintendent of the Chicago Police Department.
Former Bank Teller Sentenced to 49.5 Years Prison for “inside Job” Bank RobberiesRead the Press Release
PHOENIX – On Sept. 10, 2014, Joel Leon Thomas, Jr., 24, of El Mirage, Ariz., was sentenced by Judge David G. Campbell to 49.5 years in federal prison for masterminding three bank robberies in Peoria, Surprise, and Sun City from January - February 2012. In March 2014, a federal jury found Thomas guilty of three counts of conspiracy to commit bank robbery, two counts of aid and abet armed bank robbery, one count of aid and abet bank robbery, and two counts of using a firearm in furtherance of a crime of violence.
The evidence at trial showed that Thomas, a bank teller at the time of the robberies, provided inside information to his co-conspirators about bank security measures and bank layouts to craft plans to rob three banks in January – February 2012. The conspiracy targeted banksThomas worked at in the Surprise, Sun City, and Peoria areas. Thomas orchestrated two bank robberies at gunpoint, and in one of those robberies, he posed as a victim bank teller as he loaded $246,000 from the vault into a duffel bag for the armed gunman, his friend. In a third bank robbery, the conspiracy recruited two homeless men to commit a “note job” where they demanded money from a victim bank teller inside a busy grocery store and turned over the money to Thomas and other conspirators. After obtaining search warrants, police seized approximately $150,000 in stolen bank money, firearms, ammunition, bank robbery demand notes, and hand-drawn diagrams of the banks from the residences and cars of Thomas and others charged in the conspiracy. Five others were charged and pleaded guilty in the conspiracy.
The investigation in this case was conducted by the Federal Bureau of Investigation and the FBI’s Bank Robbery Task Force, the Peoria Police Department, the Surprise Police Department, and the Tempe Police Department. The prosecution was handled by Jennifer E. Green and Tracy Van Buskirk, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-12-00523-002-PHX-DGC
RELEASE NUMBER: 2014-050_ThomasFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Former Bank Employee Sentenced for $650,000 Bank Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former UMB Bank employee was sentenced in federal court today for embezzling more than $650,000 in a bank fraud conspiracy.
Lisa L. Taylor, 54, of Kansas City, Mo., was sentenced by U.S. District Judge Dean Whipple to six years and six months in federal prison without parole. The court also ordered Taylor to forfeit to the United States a $650,659 money judgment.
Taylor, who pleaded guilty on Feb. 27, 2014, was employed by UMB Bank as a closing account specialist from May 2006 until October 2010. Taylor was terminated when a corporate fraud investigation revealed she had fraudulently embezzled UMB funds. Taylor admitted that she used her position to generate 377 fraudulent checks totaling $650,659.
As part of Taylor’s job duties at UMB she was responsible for collecting “charge off” amounts when a former customer’s account had been closed. Occasionally a deposit would come in for a closed account and be deposited to a general UMB account. Taylor was responsible for requesting a refund check to be issued from the general UMB account and sent to the former customer at their last known address. These refund checks were sent in the form of cashier checks that required approval of a bank officer. Taylor mixed in fraudulent refund check requests with these legitimate refund requests.
Over the course of the fraud scheme, Taylor requested checks payable to her friends and family, who cashed or deposited the checks. They kept a portion of the proceeds and paid Taylor 30 to 40 percent of the proceeds.
Taylor also had checks made payable to fictitious names, to which she forged the signatures and deposited into her bank account. UMB records revealed that Taylor personally negotiated 66 fraudulent UMB bank checks for a total of $96,793.
In addition to Taylor, 11 friends and family members have pleaded guilty to their roles in the bank fraud conspiracy, including nine co-defendants who were sentenced this week.
Kara L. Williams, 34, of Kansas City, Mo., was sentenced to two years in federal prison without parole and ordered to pay $80,653 in restitution. Shameeka N. Whitehead, 31, of Kansas City, Mo., was sentenced to 18 months in federal prison without parole and ordered to pay $101,781 in restitution. Rodney C. Austin, 49, of Kansas City, Mo., was sentenced to time served and ordered to pay $29,313 in restitution. Roshana A. Franklin, 22, of Kansas City, Mo., was sentenced to time served and ordered to pay $19,308 in restitution. Ralph Broadus, 60, of Kansas City, Mo., was sentenced to time served and ordered to pay $15,584 in restitution. Stephen A. Combs, 28, of Olathe, Kan., was sentenced to time served and ordered to pay $16,945 in restitution. Geoffrey N. King, 30, of Olathe, Kan., was sentenced to time served and ordered to pay $12,533 in restitution. William D. Moore, 24, of Grandview, Mo., was sentenced to time served and ordered to pay $41,908 in restitution. Lakisha S. Weathers, 29, of Springfield, Mo., was sentenced to time served and ordered to pay $10,442 in restitution.
Antonio O. Malone, 26, and Johnnie L. Coleman, 53, both of Kansas City, Mo., have pleaded guilty and await sentencing.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the U.S. Secret Service.Former Background Investigator for Federal Government Pleads Guilty to Making A False StatementRead the Press Release
WASHINGTON – Gina M. Adams, 46, a former background investigator for the U.S. Office of Personnel Management (OPM), pled guilty today to a charge stemming from her falsification of work on background investigations of federal employees and contractors, announced U.S. Attorney Ronald C. Machen Jr. and Patrick E. McFarland, Inspector General for the Office of Personnel Management.
Adams, of Glen Burnie, Md., pled guilty in the U.S. District Court for the District of Columbia to making a false statement. The Honorable Colleen Kollar-Kotelly scheduled sentencing for Dec. 18, 2014. The charge carries a statutory penalty of up to five years in prison and a fine of up to $250,000. As part of the plea, Adams has agreed to pay $10,000 in restitution to the federal government.
According to a statement of offense submitted to the Court, Adams was employed as a Special Agent of OPM’s Federal Investigative Services.
From at least the summer of 2013 through April 2014, in at least 10 Reports of Investigations on background investigations, Adams represented that she had interviewed a source or reviewed a record regarding the subject of the background investigation. In fact, she had not conducted the interviews or obtained the records of interest. These reports were utilized and relied upon by the agencies requesting the background investigations to determine whether the subjects were suitable for positions having access to classified information, for positions impacting national security, for positions of public trust, or for receiving or retaining security clearances.
Adams’s false representations have required Federal Investigative Services to reopen and rework numerous background investigations that were assigned to her during the time period of her falsifications, at an estimated cost of at least $10,000 to the U.S. government.
Federal Investigative Services has a robust integrity assurance program which utilizes a variety of methods to ensure the accuracy of reported information. The falsification of investigative case work by the defendant was detected through the program.
This is one of numerous cases prosecuted by the U.S. Attorney’s Office for the District of Columbia since 2008 involving false representations by background investigators and record checkers working on federal background investigations. In addition to Adams, 19 other background investigators and two record checkers have been convicted of charges.
Federal Investigative Services, through its workforce of approximately 7,600, including 6,100 field investigators, is responsible for conducting background investigations for numerous federal agencies and their contractors, on individuals either employed by or seeking employment with those agencies or contractors. Federal Investigative Services conducted more than 2.3 million investigations during the 2013 fiscal year. More than 700,000 of these investigations involved applicants for access or continued access to classified information.
In performing background investigations, the investigators conduct interviews of individuals who have information about the person who is the subject of the review. In addition, the investigators seek out, obtain, and review documentary evidence, such as employment records, to verify and corroborate information provided by either the subject of the background investigation or by persons interviewed during the investigation. After conducting interviews and obtaining documentary evidence, the investigators prepare a Report of Investigation containing the results of the interviews and document reviews, and electronically submit the material to OPM in Washington, D.C. OPM then provides a copy of the investigative file to the requesting agency, which can use the information to determine an individual’s eligibility for employment or a security clearance.
In announcing the plea, U.S. Attorney Machen and Inspector General McFarland praised the efforts of Assistant Special Agent in Charge Nathaniel Smith, OPM, Office of the Inspector General, and Philip Kroop, David Newcomer, and Jeffrey Addicks, OPM, Federal Investigative Services. They also acknowledged the work of Paralegal Specialist Donna Galindo of the U.S. Attorney’s Office, as well as Assistant U.S. Attorney Ellen Chubin Epstein, who investigated and prosecuted this matter.
14-200Federal Jury Convicts Leader of ID Theft Conspiracy on Several ChargesRead the Press Release
in a Room Full of Stolen and Fake IDs
DALLAS — A federal jury deliberated just under two hours before convicting a Dallas County man on all nine counts of an indictment charging him with various federal felony offenses stemming from an identity (ID) theft conspiracy he ran in the metroplex from October 2009 to July 2013. With this conviction, six of the seven defendants charged in the conspiracy have been convicted; one remains a fugitive. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Anthony Minor, 26, of Cedar Hill, Texas, was convicted on one count of conspiracy to commit bank fraud, five counts of bank fraud, one count of using or trafficking in an unauthorized access device, and two counts of aggravated identification theft.
Minor’s girlfriend, Tilisha Morrison, 24, of Dallas, pleaded guilty in April 2014 to one count of conspiracy to commit bank fraud. Defendants Katrina Thomas, 40, of Garland, Texas; Kario Butler, 28, of Mansfield, Texas; Cyrus Pritchett, 24, of Dallas; and Jamilah Karriem, 20, of Dallas and Desoto, Texas; also pleaded guilty earlier this year to the conspiracy offense. Defendant Karen Mendoza, 43, most recently of Dallas, remains a fugitive.
Minor was the leader of the conspiracy. The government presented evidence at trial that he stole identities in a variety of ways, including purchasing them from a group of safe robbers and recruiting a Federal National Mortgage Association (Fannie Mae) employee, Katrina Thomas, to steal more than 1000 identities from her Fannie Mae workstation. Once the IDs were in hand, Minor and Morrison accessed the victims’ bank accounts and performed hundreds of account take-overs. As part of the conspiracy, they recruited their co-conspirators to walk into banks and withdraw cash.
Minor was eventually caught and arrested at the W Hotel in Dallas, in a room full of stolen and fake IDs, counterfeit checks, a laptop containing a template for the Texas Department of Public Safety Temporary Driver’s License, printer, and a $900 bottle of Dom Perignon that he had just ordered from room service using a stolen credit card. He had rented the room using another’s identification.
The government presented further evidence at trial that Minor and the conspirators stole personal identifying information for true Bank of America and JP Morgan Chase account holders (the victim-customers) and used this information to fraudulently access funds contained in their bank accounts. They also created false identities using the stolen personal identifying information.
Minor is to be sentenced by U.S. District Judge Sam A. Lindsay on January 20, 2015; others are scheduled to be sentenced in the next few months. The conspiracy to commit bank fraud count, as well as each of the bank fraud counts, carry a maximum statutory penalty of 30 years in federal prison and a $1 million fine. The producing, using or trafficking in a counterfeit access device count carries a maximum statutory penalty of 10 years in prison and a $250,000 fine. The maximum statutory penalty for the identity theft count is a mandatory term of two years in prison, to be served consecutively to any other term or imprisonment, and a $250,000 fine.
The case was investigated by the U.S. Secret Service and the Federal Housing Finance Agency Office of Inspector General.
Assistant U.S. Attorney P. J. Meitl and Special Assistant U.S. Attorney Christopher G. Poor are prosecuting.
Father and Son Plead Guilty to Sex TraffickingRead the Press Release
COLUMBUS – Keith A. Arrick Sr., 47, of Ft. Mitchell, Kentucky pleaded guilty in U.S. District Court today to sex trafficking by force, fraud or coercion. His son, Keith A. Arrick Jr., 21, of Columbus, Ohio pleaded guilty in July to sex trafficking of children.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine and members of the Central Ohio Human Trafficking Task Force, including Marlon V. Miller, Special Agent in Charge, U.S. Homeland Security Investigations, Colonel Paul Pride of the Ohio State Highway Patrol and Columbus Police Chief Kim Jacobs announced the plea entered today before U.S. District Senior Judge Peter C. Economus.
The investigation by the Central Ohio Human Trafficking Task Force found that between September 2013 and February 2014, the men used various hotels in the Columbus area to harbor women, including a minor female, to engage in commercial sex acts for the financial benefit of the defendants. The men recruited customers through internet websites by posting photos of the women or others who resembled the women, instructing the women how much to charge for the various acts then kept a portion of the money for themselves, and provided the women with illegal narcotics, including heroin. The investigation found that one victim was brought to Columbus from Kentucky. Keith A. Arrick Sr. used physical violence and threats of physical violence if the victims indicated they wished to stop performing commercial sex acts.
Sex trafficking by force, fraud or coercion is punishable by at least 15 years and up to life in prison. Sex trafficking of a minor is punishable by at least ten years and up to life in prison. Both men remain in custody as sentencing is pending.
U.S. Attorney Stewart commended the cooperative investigation by the Central Ohio Human Trafficking Task Force, which was formed in 2012 and is part of the Ohio Attorney General’s Ohio Organized Crime Investigations Commission, and which also includes authorities from the Attorney General's Bureau of Criminal Investigation (BCI), U.S. Homeland Security Investigations, Columbus Division of Police, Ohio State Highway Patrol, Powell Police Department, Federal Bureau of Investigation and the Delaware County Prosecutor's Office. Assistant U.S. Attorney Heather Hill is representing the government in this case.
East Side Bloods Gang Member Sentenced <br /> to 30 Years in Prison for Racketeering Conspiracy, <br /> Attempted Murder and Firearms ChargesRead the Press Release
An East Side Bloods (ESB) gang member from Scottsdale, Arizona, was sentenced late yesterday to serve 30 years in prison for his role in the violent street gang, which operated on the Salt River Pima-Maricopa Indian Community reservation.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney John S. Leonardo of the District of Arizona made the announcement after the sentence was imposed by U.S. District Court Judge David G. Campbell of the District of Arizona.
Denicio Elrayno Francisco, 28, a long-time member of East Side Bloods, was convicted by a jury on Oct. 31, 2013, of conspiracy to participate in a pattern of racketeering activity, attempted murder in aid of racketeering and use of a firearm in furtherance of a crime of violence.
According to evidence presented at trial, from August 2004 through January 2013, the ESB was a criminal street gang, which perpetuated itself and enriched its members through activities such as murder, robbery, aggravated assault, fraudulent “straw” purchases of firearms and the distribution of drugs, including marijuana and cocaine. The gang preserved and protected its power on the reservation and adjoining communities through the use of intimidation, violence, assault, drive-by shootings and murder. The gang also retaliated with violence and threats of violence against victims who contacted law enforcement to report the gang-related crimes.
Evidence at trial demonstrated that Francisco arranged a meeting with a member of the Salt River Pima-Maricopa Indian Community, ostensibly to discuss some gang-related conflicts on the reservation. On Nov. 23, 2012, Francisco arrived at the meeting with two other armed ESB members wearing gang colors. He stepped out of his car, yelled a gang slogan and opened fire with an AK-47 assault rifle toward the intended victim. Those present with the intended victim included a five-month-old baby, the wheelchair-bound homeowner, and seven other adults. The intended victim was struck by a bullet in the left forearm, resulting in permanent injury. Testimony at trial also showed that Francisco committed the attempted murder to maintain his position and increase his status within the ESB.
In addition to the prison term imposed, Francisco was also sentenced to serve five years of supervised release.
The defendant’s brother, Martinez Francisco Jr., 31, was also convicted at the same trial and was sentenced on Feb. 10, 2014, to serve 30 years in prison for participating in a racketeering conspiracy and illegal firearms trafficking. Eight additional gang members who entered guilty pleas in the case were previously sentenced to terms ranging from 27 to 156 months in federal prison.
The case was investigated by the Arizona Department of Public Safety’s Gang and Immigration Intelligence Team Enforcement Mission (GIITEM), the Mesa Police Department, the Salt River Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Substantial assistance was provided by the FBI, Scottsdale Police Department and Tempe Police Department.
The case was prosecuted by Hans Miller of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Keith E. Vercauteren of the District of Arizona.Douglas County Meth Dealer Receives 10-year Federal SentenceRead the Press Release
EUGENE, Ore. – Scott Arnam Wiley, 46, of Douglas County, Oregon, was sentenced today by U.S. District Court Chief Judge Ann Aiken to a 10-year prison term for possession with intent to distribute methamphetamine. Following his release from prison, Wiley will be on supervised release for five years.
Wiley was a significant and long-term methamphetamine dealer in Douglas County, Oregon with prior convictions for manufacture of methamphetamine and distribution of a controlled substance. The Douglas Interagency Narcotics Team (DINT) and the DEA conducted an investigation into his drug distribution and he was arrested in September 2012. Wiley’s residence was searched, and more than a half-pound of methamphetamine was located. His residence was gated, and had a reinforced door and security cameras in order to deter and detect law enforcement. After the United States filed a lis pendens on the property to seek its forfeiture, Wiley agreed to sell the property and the residence was demolished.
This case was investigated by the Douglas Interagency Narcotics Team and the Eugene Resident Office of the DEA. Assistant U. S. Attorney Jeffrey Sweet prosecuted the case.
Dauphin County Man Charged in Federal Child Sex Trafficking CaseRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Coy C. Klinger, 37, of Lower Paxton Township, Pennsylvania was indicted yesterday by a federal grand jury in Harrisburg charging him with sex trafficking of children, coercion and enticement, production of child pornography and possession of child pornography. The indictment also seeks forfeiture of property involved in the alleged criminal conduct.
According to U.S. Attorney Peter Smith, Klinger allegedly sought out young girls and women online and paid them to engage in acts of prostitution from his home in Lower Paxton Township between January and June 2014. Evidence was allegedly found on electronic devices in Klinger's home. The devices, including an Iphone, a cell phone, desktop and laptop computers, and a Nikon camera, as well as the residence itself located at 5716 Kenwood Avenue, are listed in a notice of forfeiture in the indictment.
Klinger appeared today before Chief Magistrate Judge Martin C. Carlson for his initial appearance. Klinger was detained pending a detention hearing scheduled for September 15.
This case is being investigated by the Federal Bureau of Investigation and the Lower Paxton Township Police Department and is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
This case was brought as part of Project Safe Childhood, a U.S. Department of Justice nationwide 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
If convicted, Klinger faces a mandatory minimum of 15 years imprisonment on the production charge, a mandatory minimum 10 years imprisonment on the sex trafficking charge, a mandatory minimum 10 years imprisonment on the coercion and enticement charge and a statutory maximum of life imprisonment.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
County Deputy Auditor in Indiana <br /> Charged with Embezzlement and Tax FraudRead the Press Release
A former LaPorte County deputy auditor has been indicted by a federal grand jury in the Northern District of Indiana for embezzling over $150,000 from the LaPorte County government and committing tax fraud.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David Capp of the Northern District of Indiana made the announcement.
The indictment returned on Sept. 10, 2014, charges Mary Ray, 66, of La Porte, Indiana, with two counts each of theft of government monies and of making false statements on a tax return.
According to the indictment, from September 2011 through December 2012 and while she was working as an auditor, Ray embezzled more than $5,000 from LaPorte County, which had received more than $10,000 in federal benefits in both 2011 and 2012.
The indictment also alleges that Ray underreported her income on her U.S. Individual Tax Returns in 2011 and 2012 by failing to report the embezzled funds.
An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty.This case was investigated by the FBI and IRS-Criminal Investigation, with assistance from the Indiana State Police, the LaPorte County Sheriff’s Department and the Indiana State Board of Accounts. The case is being prosecuted by Trial Attorney Peter Halpern of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Donald J. Schmid of the Northern District of Indiana.
Corrected ATTORNEY GENERAL HOLDER RECOGNIZES LOCAL FEDERAL PROSECUTORSRead the Press Release
Albany, NY – Assistant United States Attorneys Elizabeth Coombe, Richard Belliss and Wayne Myers and former Assistant United States Attorney John Katko were among the 243 members of the Department of Justice recognized by Attorney General Eric Holder at the 30th annual Director’s Awards Ceremony on Wednesday in Washington, D.C.
In his prepared remarks, Attorney General Holder told the awardees, “Locally, nationally, and internationally, you represent the very best that this Department has to offer. Your work embodies our ongoing commitment – not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.”
Assistant United States Attorneys Elizabeth Coombe, Richard Belliss, and Wayne Myers were recognized for the successful investigation and prosecution of Timothy McGinn and David Smith, two Albany-area securities brokers who devised and executed a $30 million investment fraud scheme. The defendants owned and operated a prominent Albany broker-dealer specializing in the securitization of burglar alarm, broadband, cable, and telephone services contracts. Along with associates who were also indicted, convicted, and sentenced, the lead defendants used a complex arrangement of trusts, holding companies, and layered financial transactions to siphon investor funds for personal expenses; to pay purported returns to some investors to encourage additional investment and conceal significant losses; to cover operating expenses of the broker-dealer; and to conceal from both investors and regulators these improper diversions of investor funds. The defendants, whose criminal conduct wiped out the life savings of numerous investors, received sentences of 15 and 10 years in prison.
Former Assistant United States Attorney John Katko was recognized for the investigation and racketeering prosecution of 25 members of the “Bricktown” and “V-NOT” street gangs. Both gangs were involved in multiple murders, armed assaults, and robberies, as well as firearm and cocaine base trafficking. The investigations solved numerous acts of violence that had occurred during a 2010 gang war, including the tragic drive-by murder of an uninvolved high school basketball star and the killing of a 20-month-old child in a misguided act of retaliation.
United States Attorney Richard S. Hartunian said, “We thank Attorney General Holder for recognizing the hard work of four of our dedicated prosecutors. Our office has 41 other diligent lawyers who fight crime and injustice every day on behalf of the citizens in our district.”
Coatesville Man Admits Trafficking A Child for SexRead the Press Release
PITTSBURGH - A Chester County resident pleaded guilty in federal court to a charge of sex trafficking of a child, United States Attorney David J. Hickton announced today.
Rasul Abernathy, 33, pleaded guilty to one count before Senior United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that in and around December of 2012, to in and around March 2013, Abernathy knowingly recruited, enticed, harbored, transported, provided and obtained a minor, John Doe, to engage in a commercial sex acts.
Judge Hornak scheduled sentencing for Jan. 8, 2015, at 9:30 a.m. The law provides for a total mandatory minimum sentence of 10 years and a maximum sentence of life in prison, a fine of $250,000, or both. Pursuant to the defendant’s plea agreement with the government, Abernathy agreed to a sentence of 10 years of imprisonment. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Allegheny County Police Department and the City of Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Abernathy.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Clinton, Maryland Man Sentenced to 120 Months for Transporting A Minor Across State Lines for ProstitutionRead the Press Release
RICHMOND, Va. – Mustafa Muhammad, 36, of Clinton, Maryland, was sentenced today to 120 months in prison, followed by 5 years of supervised release, for transporting a minor from Maryland to Virginia for prostitution.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; and Clark E. Settles, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI), made the announcement after sentencing by United States District Judge Payne.Muhammad was found guilty by a federal jury on June 24, 2014. Evidence at trial established that Muhammad met a 16-year old runaway online in February 2014, and then began communicating with her via text message. Later that month, Muhammad and the juvenile met in person in Maryland, and Muhammad posted an advertisement on backpage.com featuring the juvenile and offering her for prostitution. The juvenile provided Muhammad some of the money she made from prostitution. In March 2014, Muhammad suggested that they travel to Virginia for the juvenile to work in prostitution, and, so, on March 14, 2014, Muhammad drove the juvenile from Maryland to a Holiday Inn in Fredericksburg, Virginia. Muhammad then posted another advertisement on backpage.com in Fredericksburg, advertising the juvenile for prostitution. A Stafford Sheriff’s deputy was looking for possible prostitution activity on backpage.com and discovered the juvenile’s ad. The deputy then arranged to meet the juvenile and discovered that she was a 16-year old runaway.
This case was investigated by the Federal Bureau of Investigation, Homeland Security Investigations, Stafford County Sheriff’s Office, and Spotsylvania County Sheriff’s Office. Assistant United States Attorney Heather L. Hart prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-55.
Chief Technology Officer of Liberty Reserve Pleads GuiltyRead the Press Release
The former chief technology officer of Liberty Reserve, a company that operated one of the world’s most widely used digital currency services and allegedly laundered billions in suspected criminal proceeds, pleaded guilty today in the Southern District of New York in connection with his role in designing and maintaining the technological infrastructure for Liberty Reserve.
Assistant Attorney General Leslie R. Caldwell for the Justice Department’s Criminal Division and U.S. Attorney Preet Bharara of the Southern District of New York made the announcement.
Mark Marmilev, 35, of Brooklyn, New York, pleaded guilty today before U.S. District Judge Denise L. Cote to conspiring to operate an illegal unlicensed money transmitting business that he knew involved the transmission of funds derived from criminal activity. Sentencing is scheduled for Dec. 12, 2014.
“Marmilev designed and maintained a massive criminal infrastructure in cyberspace for one of the world’s most widely used digital currency systems, which laundered billions in criminal proceeds,” said Assistant Attorney General Caldwell. “This is the third conviction in the largest international money laundering case ever brought by the department, and we will continue to ensure that virtual currencies are not misused to facilitate criminals hiding from the U.S. justice system.”
“As the chief technology officer of Liberty Reserve, Mark Marmilev was responsible for the infrastructure of a global payment processor and money transfer system that catered largely to criminals,” said U.S. Attorney Bharara. “With his guilty plea today, we are one step closer to holding to account everyone integrally involved in this sprawling Internet enterprise that served as a central financial institution for cyber criminals and illegal transactions of numerous kinds.”
According to allegations contained in the indictment and statements made in related court proceedings, Liberty Reserve was incorporated in Costa Rica in 2006 and billed itself as the Internet’s “largest payment processor and money transfer system.” Liberty Reserve was created, structured and operated to help users conduct illegal transactions anonymously and launder the proceeds of their crimes, and it emerged as one of the principal money transfer agents used by cybercriminals around the world to distribute, store, and launder the proceeds of their illegal activity. Liberty Reserve was used extensively for illegal purposes, functioning as the bank of choice for the criminal underworld because it provided an infrastructure that enabled cybercriminals around the world to conduct anonymous and untraceable financial transactions.
According to court records, before being shut down by the government in May 2013, Liberty Reserve had more than one million users worldwide, including more than 200,000 users in the United States, who conducted approximately 55 million transactions through its system totaling more than $6 billion in funds. These funds encompassed suspected proceeds of credit card fraud, identity theft, investment fraud, computer hacking, child pornography, narcotics trafficking and other crimes. Marmilev was an associate of Liberty Reserve founder Arthur Budovsky and served as Liberty Reserve’s chief technology officer. In that role, Marmilev was principally responsible for designing and maintaining Liberty Reserve’s technological infrastructure.
Marmilev and Budovsky were among seven individuals charged in the indictment, which was unsealed on May 28, 2013, and two co-defendants – Vladimir Kats and Azzeddine el Amine – previously pleaded guilty and await sentencing. The indictment also charged Liberty Reserve with conspiracy to commit money laundering and operation of an unlicensed money transmitting business, and the charges remain pending.
This case is being investigated by the U.S. Secret Service, the Internal Revenue Service-Criminal Investigation, and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with assistance from the Secret Service’s New York Electronic Crimes Task Force. The Judicial Investigation Organization in Costa Rica, the National High Tech Crime Unit in the Netherlands, the Financial and Economic Crime Unit of the Spanish National Police, the Cyber Crime Unit at the Swedish National Bureau of Investigation and the Swiss Federal Prosecutor’s Office also provided assistance.
This case is being prosecuted jointly by the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS) and the U.S. Attorney’s Office’s Complex Frauds Unit and Asset Forfeiture Unit in the Southern District of New York, with assistance from the Criminal Division’s Office of International Affairs and Computer Crime and Intellectual Property Section.
Trial Attorney Kevin Mosley of AFMLS and Assistant U.S. Attorneys Serrin Turner, Andrew Goldstein and Christine Magdo of the Southern District of New York are in charge of the prosecution, and Assistant U.S. Attorney Christine Magdo is in charge of the forfeiture aspects of the case.
The charges contained in the indictment against certain of Marvilev’s co-defendants remain pending and are merely accusations. Those defendants are presumed innocent unless and until proven guilty.Chief Technology Officer of Liberty Reserve Pleads Guilty in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Leslie R. Caldwell, Assistant Attorney General for the Justice Department’s Criminal Division, announced that MARK MARMILEV, the former chief technology officer of Liberty Reserve, pled guilty today in Manhattan federal court to conspiring to operate an unlicensed money transmitting business that he knew involved the transmission of funds derived from criminal activity. MARMILEV was principally responsible for designing and maintaining the technological infrastructure for Liberty Reserve, a company that operated one of the world’s most widely used digital currency services. MARMILEV was arrested in Brooklyn, New York, in May 2013 and pled guilty today before U.S. District Judge Denise L. Cote.
Manhattan U.S. Attorney Preet Bharara said: “As the chief technology officer of Liberty Reserve, Mark Marmilev was responsible for the infrastructure of a global payment processor and money transfer system that catered largely to criminals. With his guilty plea today, we are one step closer to holding to account everyone integrally involved in this sprawling Internet enterprise that served as a central financial institution for cyber criminals and illegal transactions of numerous kinds.”
Assistant Attorney General Leslie R. Caldwell said: “Marmilev designed and maintained a massive criminal infrastructure in cyberspace for one of the world’s most widely used digital currency systems, which laundered billions in criminal proceeds. This is the third conviction in the largest international money laundering case ever brought by the department, and we will continue to ensure that virtual currencies are not misused to enable criminals to hide from the U.S. justice system.”
According to allegations contained in the Indictment filed against Liberty Reserve, MARMILEV, and six other individual defendants, and statements made in related court proceedings:
Liberty Reserve was incorporated in Costa Rica in 2006 and billed itself as the Internet’s “largest payment processor and money transfer system.” Liberty Reserve was created, structured and operated to help users conduct illegal transactions anonymously and launder the proceeds of their crimes. It emerged as one of the principal money transfer agents used by cybercriminals around the world to distribute, store, and launder the proceeds of their illegal activity. Liberty Reserve was used extensively for illegal purposes, functioning as the bank of choice for the criminal underworld because it provided an infrastructure that enabled cybercriminals around the world to conduct anonymous and untraceable financial transactions.
Before being shut down by the U.S. government in May 2013, Liberty Reserve had more than one million users worldwide, including more than 200,000 users in the United States, who conducted approximately 55 million transactions through its system totaling more than $6 billion in funds. These funds encompassed suspected proceeds of credit card fraud, identity theft, investment fraud, computer hacking, child pornography, narcotics trafficking, and other crimes.
MARMILEV was an associate of Liberty Reserve founder Arthur Budovsky and served as Liberty Reserve’s chief technology officer. In that role, MARMILEV was principally responsible for designing and maintaining Liberty Reserve’s technological infrastructure.
MARMILEV, 35, of Brooklyn, New York, pled guilty to one count of conspiring to operate an unlicensed money transmitting business that failed to comply with federal registration requirements and that MARMILEV knew involved the transmission of funds derived from criminal activity, which carries a maximum sentence of five years in prison. A sentencing date has not yet been scheduled. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Marmilev and Budovsky were among seven individuals charged in the indictment, which was unsealed on May 28, 2013, and two co-defendants – Vladimir Kats and Azzeddine el Amine – previously pleaded guilty and await sentencing. The indictment also charged Liberty Reserve with conspiracy to commit money laundering and operation of an unlicensed money transmitting business, and the charges remain pending.
Mr. Bharara praised the outstanding work of the United States Secret Service, the Internal Revenue Service-Criminal Investigation, and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, which worked together in this case as part of the Global Illicit Financial Team. Mr. Bharara also thanked the United States Secret Service’s New York Electronic Crimes Task Force for their extraordinary assistance with the investigation. Additionally, Mr. Bharara specially thanked all the international law enforcement agencies that assisted in the investigation, in particular, the Judicial Investigation Organization in Costa Rica, the National High Tech Crime Unit in the Netherlands, the Spanish National Police, Financial and Economic Crime Unit, the Cyber Crime Unit at the Swedish National Bureau of Investigation, and the Swiss Federal Prosecutor’s Office.
This case is being prosecuted jointly with the Department of Justice’s Asset Forfeiture and Money Laundering Section (“AFMLS”), which is overseen by Assistant Attorney General Leslie R. Caldwell. Mr. Bharara thanked AFMLS for its partnership and also thanked the Department of Justice’s Office of International Affairs and Computer Crime and Intellectual Property Section for their support.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit and Money Laundering and Asset Forfeiture Unit. Assistant United States Attorneys Serrin Turner, Andrew Goldstein, and Christine Magdo of the Southern District of New York and Trial Attorney Kevin Mosley of AFMLS are in charge of the prosecution, and Assistant United States Attorney Christine Magdo is in charge of the forfeiture aspects of the case.
The charges contained in the Indictment against certain of MARMILEV’s co-defendants remain pending and are merely accusations. Those defendants are presumed innocent unless and until proven guilty.
Black P-Stones Gang Member Sentenced to over 20 Years in Prison for Racketeering Conspiracy and Firearm ChargesRead the Press Release
A 26-year-old man from Newport News, Virginia, was sentenced today to serve 255 months in prison, followed by five years of supervised release, for engaging in numerous gang-related crimes as a member of the Black P-Stones, including the shooting of a rival gang member, marijuana dealing and lying to a federal grand jury.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office made the announcement after sentence was imposed by U.S. District Judge Arenda Wright Allen.
According to a statement of facts filed with his plea agreement, Enrique Omar Hinton, aka “Rico,” admitted that he was a “foot soldier” in a violent street gang called the Black P-Stones, also referred to as the P-Stone Bloods and Cobra Stones. The Black P-Stones operated primarily in the Beechmont, Courthouse Green, and Woodview neighborhoods in the Denbigh area of Newport News, and its members engaged in various criminal activities including murders, robberies, drug trafficking, and obstruction of justice.
According to the statement of facts, Hinton joined the gang in 2005, and as a foot soldier, he sold marijuana for the gang, carried firearms, attended gang meetings and planned and participated in the gang’s criminal activities. Additionally, on Dec. 10, 2008, Hinton and others retaliated against a rival gang member who exhibited disrespect toward the girlfriend of a Black P-Stones member. Approximately seven to eight bullets were fired at the rival gang member’s home, with bullets entering the living room and front door while two people were inside.
Hinton also admitted that on July 13, 2009, he testified falsely before a federal grand jury to obstruct the investigation of the Black P-Stones and the Dec. 10, 2008, shooting.
Hinton was charged in a superseding indictment on Dec. 9, 2013, and pleaded guilty on Mar. 28, 2014, to one count of racketeering conspiracy and one count of discharging a firearm in furtherance of a crime of violence.The investigation was led by the FBI’s Safe Streets Peninsula Task Force, with the assistance of the Newport News Police Department, James City County Police Department and the Virginia State Police. This case is being prosecuted by Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Eric M. Hurt of the Eastern District of Virginia .
Black P-Stones Gang Member Sentenced to 21 Years in Prison for Racketeering Conspiracy and Firearm ChargesRead the Press Release
NORFOLK, Va. – Enrique Omar Hinton, a.k.a. “Rico,” 26, of Newport News, was sentenced today to 255 months in prison, followed by five years of supervised release, for engaging in numerous criminal activities as a member of the Black P-Stones gang, including participating in a shooting that targeted a rival gang member, trafficking marijuana, and lying to a federal grand jury.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office made the announcement after sentencing by U. S. District Judge Arenda Wright Allen.
According to a statement of facts filed with his plea agreement, Enrique Omar Hinton (a.k.a. “Rico”), admitted that he was a “foot soldier” in a violent street gang called the Black P-Stones, also referred to as the P-Stone Bloods and Cobra Stones. The Black P-Stones operated primarily in the Beechmont, Courthouse Green, and Woodview neighborhoods in the Denbigh area of Newport News, and its members engaged in various criminal activities, including murders, robberies, drug trafficking, and obstruction of justice.
According to the statement of facts, Hinton joined the gang in 2005, and as a foot soldier, he sold marijuana for the gang, carried firearms, attended gang meetings, and planned and participated in the gang’s criminal activities. Additionally, on Dec. 10, 2008, Hinton and others retaliated against a rival gang member who exhibited disrespect toward the girlfriend of a Black P-Stones member. Approximately seven to eight bullets were fired at the rival gang member’s home, with bullets entering the living room and front door while two people were inside.
Hinton also admitted that on July 13, 2009, he testified falsely before a federal grand jury to obstruct the investigation of the Black P-Stones and the Dec. 10 shooting.Hinton was charged in a superseding indictment on Dec. 9, 2013, and he pleaded guilty on March 28, 2014 to one count of racketeering conspiracy and one count of discharging a firearm in furtherance of a crime of violence.
The investigation was led by the FBI’s Safe Streets Peninsula Task Force, with the assistance of the Newport News Police Department, James City County Police Department, and the Virginia State Police. This case is being prosecuted by Assistant U.S. Attorney Eric M. Hurt and Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:13-cr-96.Tweet
Attorney General Recognizes Tyler Federal ProsecutorRead the Press Release
Department of Justice
Office of Public AffairsWASHINGTON – Assistant U.S. Attorney (AUSA) Traci L. Kenner of the U.S. Attorney’s Office in the Eastern District of Texas was one of 243 members of the Department of Justice recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 30th annual Director’s Awards Ceremony on Sep. 10, 2014 in Washington D.C.
The Eastern District of Texas was one of 44 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In his prepared remarks to awardees, Attorney General Holder said, “Locally, nationally, and internationally, you represent the very best that this Department has to offer. Your work embodies our ongoing commitment – not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.”
EOUSA Director Monty Wilkinson echoed those sentiments, saying to the recipients, “You have persevered, and remained focused and motivated – achieving remarkable results in work that makes a difference in the lives of citizens across our great country. The vast scope of your collective accomplishments is nothing short of exceptional.”
Traci Kenner, of the Tyler office, was recognized for her outstanding performance as an Appellate AUSA and the Eastern District of Texas’s Appellate Chief. During her tenure, AUSA Kenner has made significant improvements to the district appellate program. In particular, AUSA Kenner’s exemplary handling of the appeal of United States v. Ebron, a capital murder trial originating in a Bureau of Prisons facility in the Eastern District of Texas, preserved a conviction and death sentence in a case with unusual appellate issues that could have -- but for AUSA Kenner -- resulted in a reversal and retrial. Instead, the final outcome was an affirmance in the Court of Appeals and denial of certiorari by the United States Supreme Court.
“For many years, Traci has honed her professional skills to become one of the most skilled appellate lawyers in the entire Department of Justice,” said U.S. Attorney John M. Bales. “In the Eastern District of Texas, she handles our most complicated appeals, including the death penalty cases for which she has been so deservedly recognized. We are a much better office because of Traci’s work and I am pleased that she has been afforded this honor – it is certainly deserved.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Attorney General Recognizes Eastern District of Texas EmployeesRead the Press Release
Department of Justice
Office of Public AffairsWASHINGTON – The Litigation Support Team for the U.S. Attorney’s Office in the Eastern District of Texas was recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 30th annual Director’s Awards ceremony on Sep. 10, 2014 in Washington D.C.
The Eastern District of Texas was one of 44 districts represented at the ceremony which recognized 243 members of the Department of Justice at a ceremony held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In his prepared remarks to awardees, Attorney General Holder said, “Locally, nationally, and internationally, you represent the very best that this Department has to offer. Your work embodies our ongoing commitment – not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.”
EOUSA Director Monty Wilkinson echoed those sentiments, saying to the recipients, “You have persevered, and remained focused and motivated – achieving remarkable results in work that makes a difference in the lives of citizens across our great country. The vast scope of your collective accomplishments is nothing short of exceptional.”
The Litigation Support Team of Janet Holley and Garin Reetz in the Plano office; Keary Conrad in the Sherman office; Glenda Martin in the Beaumont office; and Donna Krise in the Lufkin office, were recognized for their outstanding vision and teamwork in support of the prosecutorial mission. While the unit officially formed under Ms. Holley’s supervision in 2010, the evolution of this team started before 2010, as they independently developed innovative practices to provide litigation support in their offices. Once formed, the members combined their individual knowledge and talents to elevate service across all offices. They inherently understand how to enhance a case by court presentations, bringing the district out of the dark ages of overhead projectors and flipcharts to state-of-the-art multi-media evidence presentations.
“Today’s jurors are very sophisticated and they expect to be presented with evidence that is not only organized and persuasive but is presented in a fashion that helps them understand increasingly complex cases," said U.S. Attorney John M. Bales. “The litigation support provided by our award winning team accomplishes that mission in spades. Each of them has invested many hours in training and each of them spend many more hours in helping our prosecutors prepare what I believe are the best presented cases in east Texas. These individuals are the consummate team players. I am pleased that they have been recognized by our Executive Office but I not surprised – they are also great people.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Attorney General Recognizes Beaumont Lead ProsecutorRead the Press Release
Department of Justice
Office of Public AffairsWASHINGTON – Assistant U.S. Attorney Matt Quinn of the U.S. Attorney’s Office in the Eastern District of Texas was one of 243 members of the Department of Justice recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 30th annual Director’s Awards Ceremony on Sep. 10, 2014 in Washington D.C.
The Eastern District of Texas was one of 44 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In his prepared remarks to awardees, Attorney General Holder said, “Locally, nationally, and internationally, you represent the very best that this Department has to offer. Your work embodies our ongoing commitment – not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.”
EOUSA Director Monty Wilkinson echoed those sentiments, saying to the recipients, “You have persevered, and remained focused and motivated – achieving remarkable results in work that makes a difference in the lives of citizens across our great country. The vast scope of your collective accomplishments is nothing short of exceptional.”
Matthew C. Quinn was recognized for his outstanding contributions in leading the formation of the office in Texarkana, Arkansas, while he was an AUSA for the Western District of Arkansas. AUSA Quinn volunteered to be the first AUSA in the newly formed office, where he worked to build relationships with federal agents and local officers throughout approximately 20 counties. He was central to a new partnership between United States Attorneys’ offices for the Eastern District of Texas and Western District of Arkansas who share the Texarkana office. In addition, AUSA Quinn’s efforts have led to large drug-trafficking investigations and prosecutions including Operation Stateline Sweep, Operation Crystal Clear, Operation Street Sweeper, and Operation Ice Pick. His caseload and tireless leadership in the southern part of the district have had an enormous impact on the furtherance of justice in this previously underserved area. AUSA Quinn left the Western District of Arkansas in June 2014 and joined the Eastern District of Texas as the Attorney in Charge of the Beaumont office.
“Matt Quinn’s accomplishments as an AUSA in Texarkana are the stuff of legend,” said U.S. Attorney John M. Bales. “He started the work from scratch and four years later, dozens of dangerous criminals were justly incarcerated and federal, state and local law enforcement had effectively coalesced around Matt’s leadership. I have no doubt that Matt will accomplish similarly great things in the Golden Triangle for the people of the Eastern District of Texas.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Attorney General Recognizes Beaumont Federal ProsecutorRead the Press Release
Department of Justice
Office of Public AffairsWASHINGTON – Assistant U.S. Attorney John B. Ross of the U.S. Attorney’s Office in the Eastern District of Texas was one of 243 members of the Department of Justice recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 30th annual Director’s Awards Ceremony on Sep. 10, 2014 in Washington D.C.
The Eastern District of Texas was one of 44 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In his prepared remarks to awardees, Attorney General Holder said, “Locally, nationally, and internationally, you represent the very best that this Department has to offer. Your work embodies our ongoing commitment – not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.”
EOUSA Director Monty Wilkinson echoed those sentiments, saying to the recipients, “You have persevered, and remained focused and motivated – achieving remarkable results in work that makes a difference in the lives of citizens across our great country. The vast scope of your collective accomplishments is nothing short of exceptional.”
John B. Ross, of the Beaumont office, was recognized for his distinguished service and outstanding success in related prosecutions of the Solid Wood Soldiers (SWS). The SWS is a race-based organization that began to grow significantly in the late 2000s. Led by AUSA Ross, a multi-agency team of agents and investigators leveraged the investigation of one murder to severely disrupt and dismantle the operation and growth of the SWS criminal enterprise. In so doing, the team also effectively disrupted the Aryan Brotherhood and Aryan Circle gangs. White supremacist gang leaders who had sworn never to cooperate with the government were induced to do so. AUSA Ross used available federal statutes and investigative tools to send a substantial portion of the SWS leadership to prison to serve life sentences. This successful VICAR (Violent Crime in Aid of Racketeering) prosecution highlights effective federal law enforcement and served to deter the SWS and other racketeering organizations.
“When John was asked to take on an unsolved and unspeakably grisly murder, he did so with the knowledge that we might not ever know what had happened to James Sedtal,” said U.S. Attorney John M. Bales. “John assembled a task force of agents and officers who worked tirelessly to find out the answers and in the process, they completely unspooled the Solid Wood Soldiers, essentially crippling that gang’s organizational hierarchy. John Ross’ resolute work is a great example of how the Eastern District of Texas takes on cases that are much more than just solving a crime – they change the community for the better.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Attorney General Holder Announces Joyce Branda to Serve as Acting Assistant Attorney General for the Civil DivisionRead the Press Release
Attorney General Eric Holder released the following statement Thursday announcing Joyce Branda as Acting Assistant Attorney General for the Civil Division:
“I am pleased that Joyce Branda, a dedicated public servant whom I’ve known for years, will serve as Acting Assistant Attorney General for the Civil Division.
“Joyce's nearly 35 years of service to the American people has been defined by her unwavering commitment to public service and distinguished by her dogged pursuit of financial and health care fraud. She has helped protect and advance the public interest by recovering billions of taxpayer dollars and holding accountable those who have defrauded the treasury.
"Over the last three years, Joyce has led the Civil Division's Commercial Litigation Branch to some of the largest settlements in its history – a track record of exemplary enforcement that I'm certain she will build upon in her new role.
"And, as Stuart Delery moves into his new role as Acting Associate Attorney General, I am confident that Joyce will lead the Civil Division with the same professionalism and exceptional skill that have been her hallmark."
Armed Career Criminal Sentenced to 15 Years in Federal Prison for Firearm PossessionRead the Press Release
Orlando, Florida – Senior U.S. District Judge G. Kendall Sharp sentenced Darrell Roby (41, Orlando) yesterday to 15 years in federal prison for possession of a firearm by a previously convicted felon. Roby was also ordered to serve a 5-year term of supervision, upon his release from prison. Roby pleaded guilty on June 2, 2014.
According to court documents, Roby sold prescription pills to a confidential informant (CI) on January 27, 2014. He also sold prescription pills and a Smith and Wesson .38 caliber revolver to a CI on February 12, 2014. Roby then agreed to sell 500 pills of Oxycodone to a CI for $12,500. The transaction was scheduled to take place at Roby’s residence on February 26, 2014. During the execution of a search warrant at Roby’s residence, Roby was found to be in possession of a stolen Glock firearm.
Roby has prior state felony convictions for burglary, possession of a firearm by a convicted felon, escape, introduction or possession of contraband in a state correctional facility, delivery of cocaine, possession of cocaine, and delivery of a controlled substance. As a previously convicted felon, he is prohibited from possessing firearms or ammunition under federal law. Because his prior criminal record includes several violent felonies and a serious drug offense, Roby qualified for enhanced sentencing as an Armed Career Criminal under federal law.
“HSI is committed to ensuring the safety of our communities,” said Susan L. McCormick, special agent in charge of HSI Tampa. “Partnerships with other law enforcement agencies, like the Metropolitan Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, increase public safety in our neighborhoods.”
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Metropolitan Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
Ana Alliegro Sentenced for Having Violated the Federal Election Campaign ActRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Ana Alliegro, 44, of Miami, was sentenced to six months in prison, six months of house arrest, and two years of supervised release by U.S. District Court Judge Robert N. Scola, Jr. for having violated the Federal Election Campaign Act in connection with the Democratic Party primary election for Florida’s 26th Congressional District.
Previously, Alliegro pled guilty to engaging in a conspiracy to make false statements to the Federal Election Commission and to violate the contribution limits of the Federal Election Campaign Act (Count 1); making a false statement (Count 2); and making illegal campaign contributions (Counts 3 & 4).
Mr. Ferrer commended the investigative efforts of the FBI’s Miami Area Corruption Task Force. The case is being prosecuted by Senior Litigation Counsel Thomas J. Mulvihill.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Alabama Man Pleads Guilty to Threatening African-American Man and a Restaurant ManagerRead the Press Release
Jeremy Heath Higgins, 28, a resident of Quinton, Alabama, pleaded guilty today before U.S. District Judge Madeline Haikala to two counts of federal civil rights violations, announced the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Alabama.
As part of the plea proceedings, Higgins admitted that on June 14, 2013, he approached and threatened an African-American man at the Alabama Rose Steakhouse, a restaurant in Quinton, Alabama, because the man was present at the restaurant with a white woman. Soon after, the couple left the bar. A manager at the Alabama Rose Steakhouse confronted Higgins because of his behavior toward the African-American man and ordered Higgins to leave the restaurant. As Higgins was being escorted from the bar, he used racial slurs, shouted a racial slur at the restaurant manager, and threatened to burn down the Alabama Rose Steakhouse. Later that evening, Higgins returned to the restaurant and threatened the restaurant manager by painting graffiti on the restaurant’s front exterior and fence.
Sentencing in this case is set for January 9, 2015.
“Threatening an individual over their race or a business for its acceptance of others has no place in a civilized society,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “The Department of Justice will vigorously prosecute those who seek to intimidate others with these types of hateful threats.”“Access to public places, like restaurants, has been at the core of the civil rights struggle,” said U.S. Attorney Joyce White Vance for the Northern District of Alabama. “Unlike the lunch counters of the 1960s, the restaurant in this case welcomed and sought to protect the rights of its African American customer. In prosecuting this case, we make clear our commitment to enforcing the civil rights of individuals and the businesses who seek to serve all, without regard to the color of their skin.”
This case is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Robin B. Mark of the Northern District of Alabama and Trial Attorney David Reese of the Justice Department’s Civil Rights Division.
Alabama Man Pleads Guilty to Threatening African-American Man and A Restaurant ManagerRead the Press Release
WASHINGTON – Jeremy Heath Higgins, 28, a resident of Quinton, Alabama, pleaded guilty today before U.S. District Judge Madeline Haikala to two counts of federal civil rights violations, announced the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Alabama.
As part of the plea proceedings, Higgins admitted that on June 14, 2013, he approached and threatened an African-American man at the Alabama Rose Steakhouse, a restaurant in Quinton, Alabama, because the man was present at the restaurant with a white woman. Soon after, the couple left the bar. A manager at the Alabama Rose Steakhouse confronted Higgins because of his behavior toward the African-American man and ordered Higgins to leave the restaurant. As Higgins was being escorted from the bar, he used racial slurs, shouted a racial slur at the restaurant manager, and threatened to burn down the Alabama Rose Steakhouse. Later that evening, Higgins returned to the restaurant and threatened the restaurant manager by painting graffiti on the restaurant’s front exterior and fence.
Sentencing in this case is set for January 9, 2015.“Threatening an individual over their race or a business for its acceptance of others has no place in a civilized society,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “The Department of Justice will vigorously prosecute those who seek to intimidate others with these types of hateful threats.”
“Access to public places, like restaurants, has been at the core of the civil rights struggle,” said U.S. Attorney Joyce White Vance for the Northern District of Alabama. “Unlike the lunch counters of the 1960s, the restaurant in this case welcomed and sought to protect the rights of its African American customer. In prosecuting this case, we make clear our commitment to enforcing the civil rights of individuals and the businesses who seek to serve all, without regard to the color of their skin.”
This case is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Robin B. Mark of the Northern District of Alabama and Trial Attorney David Reese of the Justice Department’s Civil Rights Division.
###Akron Man Charged with Sex Trafficking of A Minor, Production of Child PornographyRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged Antonio L. Sibley, 38, of Akron, Ohio with the sex trafficking of a minor and production of child pornography in an indictment returned in Columbus, Ohio.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, along with members of the Central Ohio Human Trafficking Task Force, including Ohio Attorney General Mike DeWine, Marlon V. Miller, Special Agent in Charge, U.S. Homeland Security Investigations, Colonel Paul Pride of the Ohio State Highway Patrol and Columbus Police Chief Kim Jacobs announced the indictment today.
The indictment alleges that on and around July 30 Sibley advertised his victim on internet websites for paid sexual services by posting photos of the minor. The investigation found that Sibley was allegedly harboring the female in a motel in Whitehall, Ohio and had provided her with a cell phone and condoms. The indictment alleges that Sibley coerced his victim to provide sexual services to customers that responded to the online escort ads for commercial sexual activity.
The indictment charges Sibley with sex trafficking of a minor, a crime punishable by a sentence ranging from 15 years to life. He is also charged with production of child pornography, a crime punishable by a sentence ranging from 15 to 30 years.
Sibley was arrested on August 11, 2014, by members of the Central Ohio Human Trafficking Task Force at the Casa Villa Motel in Whitehall, Ohio, and remains in custody.
U.S. Attorney Stewart commended the investigation of this case by the Central Ohio Human Trafficking Task Force, which was formed in 2012 and is part of the Ohio Attorney General’s Ohio Organized Crime Investigations Commission, also includes authorities from the Attorney General's Bureau of Criminal Investigation (BCI), Columbus, Division of Police, Homeland Security Investigations (HSI), Powell Police Department, Federal Bureau of Investigation and the Delaware County Prosecutor's Office. Assistant U.S. Attorney Heather Hill is representing the government in this case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Abilene Man Sentenced to 168 Months in Federal Prison on Child Pornography ChargeRead the Press Release
ABILENE, Texas — Steven Edward Robb, 59, of Abilene, Texas, was sentenced today by U.S. District Judge Jorge A. Solis to 168 months in federal prison, following his guilty plea in April 2014 to one count of receipt of child pornography. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
According to documents filed in the case, in July 2013, Robb knowingly received two video files depicting minor females engaging in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Abilene Police Department investigated the case. Assistant U.S. Attorney Steven M. Sucsy of the U.S. Attorney’s Office in Lubbock, Texas, prosecuted.
25 Waco Area Aryan Brotherhood Members and Associates Charged in Connection with Methamphetamine Distribution OperationRead the Press Release
In the Waco area today, federal and state authorities arrested 21 Aryan Brotherhood (AB) members and associates, including ranking AB members 54–year-old Wayne Huisinger of Belton, TX, and 39–year-old Robert Eaton of Kempner, Texas, for their roles in a methamphetamine distribution operation announced United States Attorney Robert Pitman, Federal Bureau of Investigation Special Agent in Charge Christopher H. Combs, San Antonio Division, and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
A federal grand jury indictment, unsealed this afternoon, charges 20 of the 21 arrested, as well as four others who were already in custody prior to today, with one count of conspiracy to distribute methamphetamine. Robert Helms, age 29, of Temple, TX, who was also arrested this morning, was charged today by a federal criminal complaint with possession of methamphetamine with intent to distribute. Helms faces up to 20 years in federal prison upon conviction. A list of the defendants is below.
The indictment alleges that since November 2013, the defendants conspired to distribute various amounts of methamphetamine. During this 10-month-long operation, investigators conducted several controlled methamphetamine purchases. To date, authorities have seized approximately nine pounds of “crystal” methamphetamine, 15 firearms, over $9,000 in U.S. Currency and other assets in connection with this investigation.
“These charges resulted from unprecedented collaboration of federal, state, and local law enforcement targeting a large-scale prison gang involved in violent organized crime over three counties in Central Texas,” said FBI Special Agent in Charge Christopher Combs. “This effort not only exemplifies our commitment to prevent gang violence and criminal activity from poisoning our communities, but it also sends a clear message that we will relentlessly pursue and prosecute the leaders and members of these violent criminal enterprises regardless of where they lay their heads.”
“Operation ‘La Flama Blanca’ has inflicted a debilitating blow to the network of shadow and often violent facilitators of the Aryan Brotherhood of Texas,” said Joseph M. Arabit, Special Agent in Charge of the Drug Enforcement Administration--Houston Field Division. “This operation highlights a deliberate and strategic effort to cut off and shut down the supply of methamphetamine trafficked by the Aryan Brotherhood and the corresponding impact that this horrific drug inflicts on our communities.”
Upon conviction, the defendants face a statutory penalty of between ten years and life imprisonment for distributing more than 500 grams; between five and 40 years imprisonment for distributing between 50 grams and 500 grams; or, up to 20 years imprisonment for distributing less than 50 grams.
These charges and arrests resulted from a joint investigation conducted by the Federal Bureau of Investigation and the Drug Enforcement Administration together with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Temple Police Department, Texas Department of Public Safety, Texas Department of Criminal Justice-Office of Inspector General, McLennan County Sheriff’s Office, Coryell County Sheriff’s Office, Bell County Sheriff’s Office, Gatesville Police Department, Lampasas Police Department, Killeen Police Department and the Austin Police Department. Assistant United States Attorneys Mark Frazier and Stephanie Smith-Burris are prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
ARRESTED TODAY (21)
STATUTORY
NAME AGE RESIDENCE AMOUNT PENALTYROBERT EATON aka “Compound Rob” 39 Kempner, TX > 500 grams 10 years to life
AMANDA PETRIE 34 Temple, TX > 500 grams 10 years to life
SYLVIA O’NEAL 41 Temple > 50 grams 5 to 40 years
DAVID AGUILAR 34 Belton, TX > 50 grams 5 to 40 years
ROBERT MORGAN aka “Hopper” 44 Temple > 500 grams 10 years to life
WAYNE MARTIN HUISINGER 54 Belton > 50 grams 5 to 40 years
LOREN SWANSON 39 Belton > 50 grams 5 to 40 years
ERIC GANOS 39 Temple > 500 grams 10 years to life
DERRICK COOPER aka “Red” 34 Temple > 50 grams 5 to 40 years
KIRT EASTER 48 Belton > 50 grams 5 to 40 years
COLBY WARREN 40 Gatesville, TX > 50 grams 5 to 40 years
NICOLE MARSHALL 34 Gatesville > 50 grams 5 to 40 years
CHRISTOPHER BRECKENRIDGE 39 Gatesville > 50 grams 5 to 40 years
ROBERT BLAKE DOTY 31 Temple < 50 grams up to 20 years
SONYA WHITENBURG 22 Flat, TX > 50 grams 5 to 40 years
FARRON RUSSELL 33 Belton < 50 grams up to 20 years
VICKI KAY LEVY 51 Belton < 50 grams up to 20 years
RONNIE KNEPLER 53 Belton > 50 grams 5 to 40 years
RICKY LEVY 53 Nolanville, TX < 50 grams up to 20 years
MICHELLE JOHNSON 46 Belton < 50 grams up to 20 years
**ROBERT HELMS 29 Temple < 50 grams up to 20 yearsALREADY IN CUSTODY PRIOR TO TODAY (4)
NAME AGE RESIDENCE AMOUNT STAT. PENALTY
HENRY DAVID WALKER aka “Stalker” 52 Temple > 500 grams 10 years to life
JOHN MCLAUGHLIN 33 Temple > 50 grams 5 to 40 years
JAMES MALADY 27 Belton < 50 grams up to 20 years
OSCAR WALKER aka “Country” 29 Temple > 500 grams 10 years to life** Charged by criminal complaint.
"Caught on Video": Two Georgia Men Convicted in Federal Drug Conspiracy TrialRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today thatDaniel Rodriguez, age 26, of Lilburn, Georgia, and Jesus Buruca-Martinez, age 22, of Lawrenceville, Georgia, were found guilty yesterday afternoon in federal court in Greenville, South Carolina, of conspiracy to distribute 500 grams or more of methamphetamine, a violation of Title 21, United States Code, Section 846. Rodriguez was also found guilty of two counts of using a communication device (telephone) to facilitate the commission of a drug felony, a violation of Title 21, United States Code, Section 843(b). United States District Judge J. Michelle Childs presided over the trial and will impose sentence after she has reviewed pre-sentence reports which will be prepared by the U.S. Probation Office.
Evidence presented at trial established that, beginning in early 2012, agents and task force officers with the DEA in Greenville, began investigating an upstate-based methamphetamine distribution network that was being sourced with pounds of methamphetamine from individuals in the Atlanta-area. Ultimately, over a two-year investigation and some seven superseding indictments, twenty-seven defendants were indicted in the conspiracy, with twenty-five entering guilty pleas. The investigation revealed that two members of this conspiracy, Dustin Tiller and Nicanor Perez-Rodriguez, both inmates in the South Carolina Department of Corrections at the time, contacted members of their families on the outside to arrange for methamphetamine to be transported from Georgia into South Carolina for further distribution.
After identifying Daniel Rodriguez as a Georgia-based member of the conspiracy who was making frequent trips to South Carolina to bring methamphetamine as well as collect drug proceeds, members of the Anderson County Sheriff’s Office and Anderson City Police Department were able to establish surveillance on Rodriguez, on Sunday, August 5, 2012, as Rodriguez met with other members of this conspiracy, to include Jesus Buruca-Martinez, in the parking lot of a restaurant, located off of Exit 19, Interstate 85, in Anderson County.
Agents then maintained surveillance on Rodriguez and Buruca-Martinez as they traveled in tandem, both driving separate vehicles, to a residence in Belton, South Carolina. Maintaining surveillance on the Belton residence, agents observed Buruca-Martinez leave the residence, followed by Rodriguez’s departure some twenty minutes later. Traffic stops were conducted on both vehicles and law enforcement seized $20,240 in cash from Buruca-Martinez.
Following the execution of a federal search warrant at the Belton residence and the arrest of Rodriguez, Buruca-Martinez, and others, that evening, agents reviewed a home surveillance system seized in the search. The surveillance system had an operational camera imaging the living room of the residence, attached to a digital video recording (DVR) system. In reviewing the images on the DVR, which dated back some two weeks from the incident date, agents observed Rodriguez arriving at the residence on two previous occasions in July 2012.
Regarding the activity inside the residence on August 5, 2012, a review of the video revealed Rodriguez, Buruca-Martinez, and third co-conspirator, who rode with Rodriguez that day from Georgia, counting, for several minutes, over $20,000 in cash. Witnesses testified that this cash was partial payment applied to the overall drug debt owed to Rodriguez and others for pounds of methamphetamine previously provided on consignment. As the money count concluded, the video showed Buruca-Martinez bundling two cash parcels, placing one in each cargo short pocket, and exiting the residence, ultimately heading south on Interstate 85 before he was stopped by law enforcement.
Nettles stated that Rodriguez and Buruca-Martinez both face a maximum penalty of life in prison and are both subject to a statutory mandatory minimum of ten years in prison.
Nettles stated that the case was investigated and prosecuted by members of the Organized Crime and Drug Enforcement Task Force (OCDETF), a taskforce coordinated by the United States Attorney’s Office. Members of the task force involved in this investigation included the Anderson County Sheriff’s Office, the Anderson City Police Department, the South Carolina Highway Patrol, the Department of Homeland Security, and the Drug Enforcement Administration. Assistant United States Attorneys Andy Moorman and Lance Crick of the Greenville office handled the prosecution.
Wednesday 10 September 2014
Wethersfield Man Charged Federally for Role in Swatting Incidents at Uconn, ElsewhereRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that MATTHEW TOLLIS, 21, of Wethersfield, was arrested today on a federal criminal complaint charging him with participating in a series of “swatting” incidents that occurred earlier this year in Connecticut and other states.
“Swatting” is the making of a hoax call to any emergency service to elicit an emergency response based on the false report of an ongoing critical incident. Incidents typically produce the deployment of SWAT units, bomb squads, and other police units, as well as the evacuations of schools, businesses and residences.
“All of us in law enforcement are committed to exposing the individuals responsible for these swatting incidents and prosecuting them to the full extent of the law,” stated U.S. Attorney Daly. “These events cause emotional distress for victims and waste the valuable time and resources of our law enforcement community. The felony charges announced today, as well as the ongoing investigation here and abroad, make clear that this is not a game.”
“The idea that ‘swatting’ is some kind of modern-day harmless prank is woefully misplaced,” stated FBI Special Agent in Charge Ferrick. “It is a serious federal crime and will be investigated and prosecuted as such. The FBI and the U.S. Attorney’s Office, along with its law enforcement partners, will continue to identify and pursue those responsible for these dangerous hoaxes and not quit until all are held accountable for their criminal actions.”
As alleged in the criminal complaint, TOLLIS was a member of a group primarily consisting of Microsoft X-Box gamers who referred to themselves as “TCOD” (TeAM CrucifiX or Die). The investigation has revealed that TOLLIS and his TCOD associates have used the Internet communication service Skype to make hoax threats involving bombs, hostage taking, firearms, and mass murder. TOLLIS has been identified as a participant in at least six of these swatting incidents, including a bomb threat to the University of Connecticut (UConn), and bomb threats to schools and other locations in New Jersey, Florida, Texas and Massachusetts.
On April 3, 2014, a bomb threat to UConn’s Admissions Department resulted in a multiple hour, campus-wide lockdown and required the UConn Police and the Connecticut State Police’s Bomb Squad, Emergency Services Unit and SWAT teams to respond.
The ongoing investigation has revealed that TCOD members are also responsible for at least six additional swatting incidents in Connecticut and Massachusetts. It is believed that three members of TCOD reside in the United Kingdom and have made swatting calls from the U.K. The FBI is actively working with authorities in the U.K. to identify these individuals.
The criminal complaint charges TOLLIS with one count of conspiring to engage in a bomb threat hoax, one count of aiding and abetting a bomb threat hoax, and one count of aiding and abetting the malicious conveying of false information regarding an attempt or alleged attempt to kill, injure or intimidate any individual, or to unlawfully damage or destroy any building or other real or personal property by means of an explosive. Each of these charges carries a maximum term of imprisonment of five years.
Following his arrest, TOLLIS appeared in Bridgeport federal court and he is currently detained. A detention hearing is scheduled for September 12 at 2:00 p.m.
On September 3, 2014, TOLLIS was arrested on state charges stemming from the UConn swatting incident.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the FBI’s New Haven, Newark and Boston field offices, the UConn Police Department, the Connecticut Intelligence Center, the Willimantic Police Department, the Monroe Police Department, the Harvard University Police Department, the Boston University Police Department, the Newton (Mass.) Police Department, the Cambridge (Mass.) Police Department and other state and local law enforcement agencies.
U.S. Attorney Daly also acknowledged the critical assistance being provided by the U.S. Attorney’s Office for the District of New Jersey.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Wagner Man Sentenced to 87 Months for Drug OffenseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wagner, South Dakota, man convicted of Conspiracy to Distribute Methamphetamine was sentenced on September 8, 2014, by Judge Karen E. Schreier.
Julian Lee Winckler, age 39, was sentenced to 87 months in custody, three years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Winckler was indicted for Conspiracy to Distribute Methamphetamine by a federal grand jury on December 3, 2013. He pled guilty on June 12, 2014.
In 2013, Winckler was involved in a conspiracy to distribute methamphetamine on the Yankton Sioux Reservation. He sold methamphetamine to a confidential source.
This case was investigated by the Federal Bureau of Investigation, South Dakota Division of Criminal Investigation, Bureau of Indian Affairs, and the Charles Mix County Sheriff’s Office. Special Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Winckler was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.
Virginia Business Owner Pleads Guilty to Failing to Pay Employment TaxesRead the Press Release
<RICHMOND, Va. – Richard A. Long, age 58, of Midlothian, Virginia, pleaded guilty to failing to truthfully account for and pay over employment taxes. He faces up to five years in prison and a $250,000 fine when he is sentenced by United States District Judge John A. Gibney on January 7, 2015.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Ron Cimino, Deputy Assistant Attorney General for Criminal Matters, Tax Division; and Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office, announced the plea.
According to a Statement of Facts filed with the plea agreement, Long acknowledged that he owned, operated, and was the president of Mercedes-Volvo Service Center, a Virginia-based automotive repair business specializing in high-end vehicles. He was the person responsible for collecting, truthfully accounting for, and paying federal income, Social Security, and Medicare taxes for his employees. Long admits that from 2007 through the first quarter of 2013 he paid employees of Mercedes-Volvo Service Center net wages subject to federal taxes totaling $1,334,418.54. Instead of making the required $328,952.21 in estimated tax payments to the IRS with the federal taxes that he had withheld from employees’ paychecks, he kept the funds and failed to pay the IRS the taxes due. Even though Long never paid these federal taxes to the IRS, he annually issued himself and his employees IRS Forms W-2 that reflected the federal tax withholdings.
This case is being investigated by special agents of IRS – Criminal Investigation and is being prosecuted by Special Assistant United States Attorneys Rebecca Perlmutter and Todd Kostyshak, both of whom are trial attorneys with the DOJ Tax Division, and with the assistance of the U.S. Attorney’s Office.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-117. More information about the Tax Division and its enforcement efforts can be found at www.justice.gov/tax.
Us Attorney Luger Announces Guilty Plea of Plymouth Attorney Who Stole $500,000 from InvestorsRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of TIMOTHY JON OLIVER, 60, for stealing $500,000 from ARS Tectonica, a Mexican construction company, in connection with an alleged real estate project in Libya. OLIVER entered his guilty plea today before Chief Judge Davis in U.S. District Court in Minneapolis.
“Lawyers committing fraud is simply unacceptable,” said Assistant U.S. Attorney David J. MacLaughlin. “Lawyers who commit fraud also conduct professional misconduct which reflects poorly on people who are trained to know better. Lawyers, investment advisors, and other licensed professionals are expected to live up to a higher standard.”
According the defendant’s guilty plea and documents filed in court, from May 2009 to May 2010, he controlled two companies, American Diversified Industries, LLC (ADI), which was used to receive proceeds of the scheme, and GVA International Limited, which was purported to be developing a real estate project in Bani Walid, Libya. OLIVER pressured, and ultimately convinced, ARS Tectonica to send $500,000 to ADI to secure a letter of credit from a Minnesota credit union.
According to his guilty plea, OLIVER told ARS Tectonica that the letter of credit would be presented to the Organization for Development of Administrative Centers (ODAC), an arm of the Libyan government, as a performance bond for the real estate project in Libya. He also told ARS Tectonica that, once ODAC approved the letter of credit, it would be awarded the opportunity to become the construction manager for the Bani Walid project.
According to documents filed in court, on May 21, 2009, ARS Tectonica wired $500,000 to OLIVER, which was received through ADI’s account that was maintained by the defendant. Instead of using the money to secure a letter of credit, OLIVER spent the money on unrelated debts. For almost a year thereafter, OLIVER lulled ARS Tectonica into believing that the $500,000 remained at the credit union and was being utilized by the credit union to secure the letter of credit.
This case was prosecuted by Assistant U.S. Attorney David J. MacLaughlin.
U.S. Attorney Luger thanked the Federal Bureau of Investigation for conducting the investigation.
Defendant Information:
TIMOTHY JON OLIVER
Plymouth, MN
Convicted:
• Wire Fraud, 1 countU.S. Attorney General Recognizes Three Employees of the U.S. Attorney’s Office for the District of New MexicoRead the Press Release
ALBUQUERQUE – Assistant U.S. Attorneys Tara C. Neda and Timothy S. Vasquez and Director of Administration Ruth M. Cox of the U.S. Attorney’s Office in the District of New Mexico were among the 244 members of the Department of Justice recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 30th annual Director’s Awards Ceremony today in Washington D.C.
The District of New Mexico was one of 44 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In his prepared remarks to awardees, Attorney General Holder said, “Locally, nationally, and internationally, you represent the very best that this Department has to offer. Your work embodies our ongoing commitment – not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.”
EOUSA Director Monty Wilkinson echoed those sentiments, saying to the recipients, “You have persevered, and remained focused and motivated – achieving remarkable results in work that makes a difference in the lives of citizens across our great country. The vast scope of your collective accomplishments is nothing short of exceptional.”
Ms. Neda received her Director’s Award for her outstanding prosecution of United States v. Armando Gutierrez, Joseph Kupfer and Elizabeth Kupfer, on charges arising out of the theft of $2.5 million in federal Help America Vote Act (HAVA) funds. In fall 2010, Ms. Neda assumed responsibility for the federal prosecution after related state charges met procedural roadblocks and subsequently were dismissed. Ms. Neda obtained an indictment in December 2010 and a superseding indictment in July 2011, shortly before the statute of limitations expired. After the case was bifurcated for trial purposes, she obtained guilty verdicts against the defendants in two trials.
Ms. Cox received the Executive Achievement Award for her 24 years of service to the Justice Department and the District of New Mexico. During her 14 years as the Director of Administration, Ms. Cox has been universally respected for her integrity, dedication, and leadership, as well as her commitment to the professional development and well-being of the United States Attorney’s Office (USAO) staff. Ms. Cox worked her way up to the Director of Administration position from a secretarial position, during which time she completed a college degree in a field that has enhanced her value to the Department and the USAO.
Mr. Vasquez, who recently transferred to the USAO in New Mexico from the District of Nevada, was recognized for the prosecution of Nicholas Bickle and his co-conspirators in that district on charges arising from their illegal possession and sale of military firearms. Bickle, then a Navy SEAL, used his position to smuggle scores of military firearms into the United States when his unit redeployed from Iraq. Those firearms included dozens of AK-47 style machine guns (many bearing markings of Iraq’s armed forces), other machine guns, and multiple semi-automatic pistols which the United States had previously procured for Iraq’s security forces. Bickle and his co-conspirators transported most of those weapons from California to Nevada and Colorado where they sold them to an undercover ATF task force agent posing as an illicit firearms dealer. After his co-defendants pled guilty, Bickle was convicted following a three-week trial and sentenced to 17 years in prison.
U.S. Attorney Damon P. Martinez applauded the Justice Department’s recognition of the work performed by Ms. Neda, Ms. Cox and Mr. Vasquez, and said, “The work for which these three public servants were recognized today embodies the Justice Department’s commitment to do justice, protect our fellow citizens from crime and violence, and to uphold the rule of law while adhering to the highest standards of professionalism. I am proud to count each of them as a colleague and partner.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.U.S. Attorney General Recognizes District ProsecutorsRead the Press Release
WASHINGTON – Assistant United States Attorneys Jean M. Hobler and Lee S. Bickley of the U.S. Attorney’s Office in the Eastern District of California were two of 243 members of the Department of Justice nationwide recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 30th annual Director’s Awards Ceremony today in Washington D.C.
The Eastern District of California is one of 44 federal districts represented at the ceremony, which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building. The awards recognize outstanding achievements by employees of the U.S. Attorney’s Offices.
In his prepared remarks to awardees, Attorney General Holder said, “Locally, nationally, and internationally, you represent the very best that this Department has to offer. Your work embodies our ongoing commitment — not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.”
EOUSA Director Monty Wilkinson echoed those sentiments, saying to the recipients, “You have persevered, and remained focused and motivated — achieving remarkable results in work that makes a difference in the lives of citizens across our great country. The vast scope of your collective accomplishments is nothing short of exceptional.”
Jean Hobler and Lee Bickley each received the Director’s Award for Superior Performance by an Assistant United States Attorney for their outstanding work in prosecuting Anthony Vassallo’s Ponzi scheme that was one of the largest in the district’s history. Vassallo took in over $80 million of investor funds and lost over $40 million of those funds. They were assigned this case after the departure of the initiating Assistant United States Attorney and the reassignment or retirement of all the original case agents. Nevertheless, Assistant United States Attorneys Hobler and Bickley and new agents prepared for trial in this case involving dozens of feeder investment funds and over 400 individual victims. In May 2012, Bickley successfully moved to have Vassallo’s pretrial release revoked, three years after he was charged, to the great relief of Vassallo’s victims. Hobler led the plea negotiations, which were protracted and complex. Shortly before trial, and four years after he was charged, with his third defense attorney and having fought every suggestion he had committed a crime, on February 1, 2013, Vassallo pleaded guilty. On June 21, 2013, Vassallo was sentenced to 16 years in prison and was later ordered to pay over $43 million in restitution to his victims. Co-conspirator Kenneth Kenitzer pleaded guilty in a related case and on February 14, 2014, was sentenced to six years in prison.
“Prosecuting complex financial crimes has been a priority for this office, and it is a job we have been doing well,” said U.S. Attorney Wagner. “As the Attorney General recognized today, Jean Hobler and Lee Bickley have done outstanding work, both in the prosecution of a huge Ponzi scheme and in their handling of many other cases in this district. Their colleagues in this office are proud of them.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
U.S. Attorney General Recognizes District EmployeesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that Assistant U.S. Attorneys Paul S. Becker and Jess E. Michaelsen were among 243 members of the Department of Justice recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 30th annual Director’s Awards Ceremony today in Washington, D.C.
“Both award recipients are tough federal prosecutors and diligent public servants who have served the cause of justice tirelessly,” Dickinson said. “They are representative of so many employees who go above and beyond the call of duty. I’m proud of their accomplishments and applaud them for this well-deserved national recognition.”
The Western District of Missouri was one of 44 districts represented at the ceremony, which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In his prepared remarks to awardees, Attorney General Holder said, “Locally, nationally, and internationally, you represent the very best that this department has to offer. Your work embodies our ongoing commitment – not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.”
Wilkinson echoed those sentiments, saying to the recipients, “You have persevered, and remained focused and motivated – achieving remarkable results in work that makes a difference in the lives of citizens across our great country. The vast scope of your collective accomplishments is nothing short of exceptional.”
Executive Achievement Award
Assistant U.S. Attorney Paul S. Becker is recognized for his contributions over his more-than-25-year career as a federal prosecutor. For more than 20 years, from 1991 until 2013, Becker was the chief of the Organized Crime Strike Force and the Violent Crime Strike Force Unit. In this role, his personal contributions included not only supervising other prosecutors, but also serving as the lead prosecutor in numerous high profile organized crime and violent crime cases. During this time he also creatively managed the district’s gun violence reduction program, which for multiple years led the entire nation in the number of indictments against defendants for illegally possessing firearms. Since he joined the Organized Crime Strike Force in Kansas City in 1987, Becker has served the Department of Justice as a career executive with high ethical standards, personal integrity, and dedication to public service.
Superior Performance as an AUSA
Assistant U.S. Attorney Jess E. Michaelsen is recognized for the successful resolution of a number of high profile and challenging cases. Michaelsen served as lead counsel in United States v. Rodney Anderson, et al., a three-defendant arson case involving the Hereford House, a landmark restaurant in Kansas City. All three defendants received long prison sentences after being convicted at trial. He also served as lead counsel in United States v. Martin Sigillito, et al., which resulted in guilty verdicts following a four-week jury trial in St. Louis, Mo. Sigillito was sentenced to 40 years in prison for leading the $56 million Ponzi scheme. Michaelsen also managed a very complex and wide-ranging fraud caseload including United States v. Deborah Flores, et al., in which he obtained a 40-count indictment against 14 defendants who later pleaded guilty to their roles in an illegal document fraud scheme operating out of a driver’s license office in St. Joseph, Mo.
The Executive Office for U.S. Attorneys provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.Two Honduran Nationals Sentenced to Prison for Their Roles in Tax Refund Fraud ConspiracyRead the Press Release
United States Attorney Kenneth Allen Polite, Jr. and Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department’s Tax Division announced today that two men unlawfully residing in Louisiana were sentenced to prison for identity theft and tax fraud.
ARNULFO SANTOS-MEDRADO, 42, was sentenced to 38 months in prison for conspiracy to defraud the United States by filing false income tax returns and for aggravated identity theft. In addition, MILLER PERDOMO-ACEITUNO, 22, was sentenced to 24 months in prison for his role in the conspiracy to defraud the United States. Each defendant was further ordered to pay $400,000 in restitution and to serve one year of supervised release following their prison terms.
Both defendants have been detained since their arrest, and as Honduran nationals they face possible deportation following the completion of their sentences. They were charged with being part of a multi-jurisdictional conspiracy to file false income tax returns. To date, sixteen defendants have entered guilty pleas to various charges in the case, including JACQUELINE J. ARIAS, a tax return preparer in Spruce Pine, Alabama, who is scheduled to be sentenced on October 22, 2014.
According to the indictments in this case, the conspirators filed false returns listing Individual Taxpayer Identification Numbers (ITINs). An ITIN is a tax processing number issued by the Internal Revenue Service (IRS) to individuals who do not have, and are not eligible to obtain, a social security number. As alleged in the indictments, JACQUELINE J. ARIAS was a Certified Acceptance Agent, meaning that she was entrusted by the IRS with the responsibility of reviewing the documentation of an ITIN applicant’s identity and alien status for authenticity, completeness and accuracy before submitting their application to the IRS. The indictments charged that ARIAS and her coconspirators filed false applications for ITINs, in addition to false income tax returns, and that ARIAS collected preparation fees from the fraudulently-obtained tax refunds. According to the second superseding indictment, the conspirators purchased identification documents from overseas and Forms W-2 from other aliens illegally present in the United States for use in filing false income tax returns with ARIAS.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; IRS-Criminal Investigation; the U.S. Secret Service; the U.S. Postal Inspection Service; and the Social Security Administration, Office of the Inspector General, in partnership with the St. Tammany Parish, La. and Jefferson Parish, La. Sheriffs’ Departments. The case was prosecuted by Hayden Brockett and Kevin Lombardi of the Tax Division and Assistant U.S. Attorney David Haller.
Three Men Charged with Operating Online Website Selling Fake Driver's LicensesRead the Press Release
NEWARK, N.J. – Three New Jersey men were arrested today on charges they allegedly ran an online shop selling fake driver’s licenses, U.S. Attorney Paul J. Fishman announced today.
Ricardo Rosario, 32, and Abraham Corcino, 33, both of Jersey City, and Alexis Scott Carthens, 37, of Newark, are charged by complaint with conspiracy to commit fraud and related activity in connection with authentication features. All three men are expected to make their initial court appearances later today before U.S. Magistrate Steven C. Mannion in Newark federal court.
According to the complaint:
From October 2012 through August 2014, Rosario, Corcino and Carthens allegedly sold fake driver’s licenses over the Internet. The three men ran a website that was available at “fakeidstore.co” and “fakedlstore.com.” A number of the fake driver’s licenses allegedly sold by the defendants were used in connection with “cash out” schemes, where stolen credit card information, usually obtained through hacking or ATM skimming operations, was encoded on to counterfeit credit cards and then used to steal cash from victims’ accounts.
The website sold fake driver’s licenses for the states of New Jersey, Florida, Illinois, Pennsylvania, Rhode Island, and Wisconsin, and boasted that the licenses had “scannable barcodes” and “real” holographic overlays. The price for each fake driver’s license was approximately $150, but the website offered bulk pricing for orders of 10 or more cards. The website allowed its users to pay by bitcoin, a cryptographic-based digital currency, or MoneyPak, a type of prepaid payment card that could be purchased at retail stores. The “FAQ” section of the website indicated that orders would be received one to two days after payment was received and described the website’s policy with respect to returns: “No Refunds. No snitching.”
Rosario allegedly created and ran the Website. Corcino and Carthens allegedly assisted Rosario by creating and mailing the fake driver’s licenses. Corcino also maintained an Instagram website, which was used to promote the website.
Rosario and his conspirators sold 1,514 fake driver’s licenses for $232,660 between or Dec. 30, 2013, and June 23, 2014.
The count of conspiracy to commit fraud and related activity in connection with authentication features carries a maximum potential penalty of 15 years in prison and a fine of twice the gross gain or loss derived from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates in Newark, with the investigation leading to today’s charges.The government is represented by Assistant U.S. Attorneys Andrew S. Pak of the Computer Hacking and Intellectual Property Section and Barbara Ward of the office’s Asset Forfeiture and money laundering unit.
The charges and allegations contained in the complaint are merely accusations and the defendants are considered innocent unless and until proven guilty.
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Rosario, Ricardo et al. Complaint
The Executive Office for Immigration Review to Host Stakeholder Teleconference and Webinar on Recognition and Accreditation ProgramRead the Press Release
SUMMARY - The Executive Office for Immigration Review (EOIR) invites interested parties to participate in a teleconference and Webinar providing a general overview of EOIR's recognition and accreditation program. This event is intended to educate interested parties about the process for obtaining recognition for an organization and accreditation for individuals.
DATE: Friday, September 26, 2014, at 2 p.m.
RSVP: To RSVP for the meeting, please contact Lauren Alder Reid, Counsel for Legislative and Public Affairs, 703-305-0289, [email protected], by noon on Wednesday, September 24, 2014. Please note that there will be no in-person attendance for this event. EOIR will send call-in and Web access information on Wednesday, September 24th, to those who RSVP. To attend the meeting via conference call and Web, please RSVP with the name(s) of the attendee(s), the attendee's organization, and an email address where instructions may be sent for accessing the conference call and Web meeting.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
St. Francis Man Sentenced for Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on September 8, 2014, by U.S. District Judge Roberto A. Lange.
Damien Little Elk, age 36, was sentenced to 37 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Little Elk was indicted for Assault Resulting in Serious Bodily Injury and Assault with a Dangerous Weapon by a federal grand jury on February 12, 2014. He pled guilty to Assault with a Dangerous Weapon on June 17, 2014.
On January 8, 2014, Little Elk was drinking alcohol and arguing with the victim. Little Elk hit and kicked the victim in the abdomen, torso, and legs with shod feet.
This case was investigated by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Little Elk was immediately turned over to the custody of the U.S. Marshals Service.
Sesser Man Sentenced for Conveying False Allegations of A Terrorist Plot to Disrupt Election Day 2012Read the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced that Ray Allen Flener, 26, of Sesser, Illinois, was sentenced on September 10, 2014, on federal charges that he made false statements and conveyed a false threat to federal agents. The United States District Court for the Southern District of Illinois sentenced Flener to 48 months in federal prison, to be followed by two years of supervised release, payment of a special assessment of $200.
At the change of plea hearing in April of 2014, Flener admitted that on November 2, 2012, as a detainee at the Franklin County Jail in Benton, he told a Special Agent of the Federal Bureau of Investigation (FBI) that he had knowledge of a plan by a group called “the New World Order” to disrupt Election Day on November 6, 2012, by using weapons and explosives. Specifically, Flener told and showed the FBI agent the area in which the weapons and explosives allegedly had been stored in August of 2012. Flener’s statements were false because, as Flener knew, he had no such knowledge of weapons and explosives having been stored at that location.
Flener also admitted that on November 1, 2012, he intentionally conveyed false and misleading information, when Flener told law enforcement officers from the Franklin County Sheriff’s Office and the FBI that he had personal knowledge of a plan by a group called “the New World Order” to disrupt Election Day, November 6, 2012, by using weapons and explosives.
The case was investigated by the Federal Bureau of Investigation, the Illinois State Police, the Illinois Department of Corrections, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Sheriff’s Offices of Franklin County, Williamson County, Saline County and Jackson County, and the Police Departments of Marion, West Frankfort and Johnston City. The case was prosecuted by Assistant United States Attorney Liam Coonan.
Sarasota Drug Dealer Convicted of Drug Trafficking and Firearms OffensesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Toborus Dontay Cunningham (33, Sarasota) guilty of possession with intent to distribute over 500 grams of cocaine (Count One) and possession of a firearm in furtherance of his drug trafficking offense (Count Two). Cunningham faces a maximum penalty of 40 years in federal prison for Count One and a mandatory consecutive 5 years’ imprisonment on Count Two. His sentencing hearing has not yet been scheduled. Cunningham was indicted on April 3, 2014.
According to the evidence presented at trial, Cunningham was a supplier to other drug dealers in the Sarasota area. During the course of the investigation, law enforcement officers found over 2000 grams of cocaine in Cunningham’s home, and five firearms and hundreds of rounds of ammunition in his home and office.
This case was investigated by the Drug Enforcement Administration, the Sarasota Police Department, and the Manatee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Natalie Hirt Adams, and James C. Preston.
Rochester Man Pleads Guilty to Wire FraudRead the Press Release
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that David Hoffman, 41, of Rochester, NY, who was convicted of wire fraud, was sentenced to three years probation by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that between June 2008 and September 2008, the defendant operated an auto dealership. Hoffman applied for financing from an automotive financing company, Dealer Services Corporation (DSC) for an inventory of vehicles. After receiving the financing, the defendant then applied for an obtained financing for the exact same vehicles already financed by DSC from another financing company, Automotive Finance Corporation (AFC).
Hoffman received over $166,000 in duplicate financing based on the fraudulent scheme for approximately 13 vehicles.
The sentencing was the culmination of an investigation on the part of the Federal Bureau of Investigation.Protect Our Children ConferenceRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, and Barry R. Grissom, United States Attorney for the District of Kansas, announced that law enforcement officers and victim service providers from throughout a multi-state region are in Kansas City, Mo., this week to attend the 11th annual Protect Our Children Conference at the Airport Hilton in Kansas City, Mo., from Sept. 10 to 12, 2014.
The Protect Our Children provides training for those who are in the trenches combating Internet crimes against children, child exploitation, child sexual assault, and child abduction. Dickinson, Grissom and Kansas City Police Chief Darryl Forte welcomed conference attendees this morning.
The three-day conference, which is hosted by United States Attorneys in Missouri, Kansas, Iowa, Nebraska, Illinois, and Indiana, rotates among cities each year. The event provides a multi-disciplinary approach for law enforcement, medical and mental health and victim service providers. Experts and practitioners present a comprehensive strategy to protect children and seek justice on their behalf.
The overall goal of the 11th Annual Protect Our Children Conference is to increase community awareness, improve investigative and prosecutorial practices, and provide resources to all participants. This year’s conference showcases presenters from across the country specializing in the investigation and prosecution of crimes against children and the treatment of child victims.
A special keynote address will be presented by Christopher Baughman, host of MSNBC’s new series on human trafficking, at 8:30 a.m. Wednesday, 10, 2014.
Prior to Baughman’s retirement, he headed up the Pandering Investigation Team (PIT) and Human Trafficking Task Force for the Las Vegas Police Department, where his team arrested and convicted several of the city’s wealthiest and most violent criminals. He teaches pandering investigations to other departments across the nation, including members of the FBI, IRS, and Federal Parole and Probation Agencies. He is also author of the best-selling true crime human trafficking series, “Off The Street.”
At 10:30 a.m. Friday, Sept. 12, 2014, closing keynote speaker Derek Clark will share his compelling personal testimony of the childhood trauma he endured and overcame, which has inspired thousands of people to overcome their own adversity. A published author and well-known expert in working with troubled children and youth, he will also share insight and training to equip us for dealing with young victims.
Plenary speakers will address such topics as “Trauma and Recovery,” “Neurobiology of Trauma,” and “Cyberbullying.” Sixteen workshops feature separate tracks with experts and topics that are specifically relevant to law enforcement, health care/medical, or victim providers. Special elective workshops will also be offered on a diverse range of topics.
Most of the conference sessions are open to the media. More information about the Protect Our Children Conference can be found online at http://www.pocconference.com.Prior Felon from Roswell Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Jerry J. Barrera, 30, of Roswell, N.M., pleaded guilty this afternoon in federal court in Las Cruces, N.M., to being a felon in possession of a firearm and ammunition.
Barrera is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Barrera was arrested in March 2014, based on a criminal complaint alleging that he unlawfully possessed a firearm and ammunition on Feb. 26, 2014, in Chaves County, N.M. Barrera subsequently was indicted on that same charge on June 18, 2014. Barrera was prohibited from possessing firearms and ammunition in Feb. 2014, because he previously had been convicted of being a felon in possession of a firearm, and possession of methamphetamine with intent to distribute.
Barrera has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Barrera faces a statutory maximum penalty of ten years in prison.
This case was investigated by the Roswell office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Chaves County Metro Narcotics Task Force with assistance from the 5th Judicial District Attorney’s Office. Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Pine Ridge Woman Indicted for LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, woman has been indicted by a federal grand jury for Larceny.
Candace Hill, age 43, was indicted on August 26, 2014. She appeared before U.S. Magistrate Judge Veronica L. Duffy on September 9, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Hill stealing cash and funds belonging to Pinky’s Store in Manderson between September and December 2013.
The charge is merely an accusation and Hill is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Hill was released on bond pending trial. A trial date has been set for November 18, 2014.
Peabody Investment Advisor Sentenced for Defrauding ClientsRead the Press Release
BOSTON – A Peabody investment advisor was sentenced today for defrauding several Boston-area residents out of their retirement savings.
John Michael Babiarz, 40, was sentenced by U.S. District Judge F. Dennis Saylor, IV to four years in prison, restitution of more than $645,000 to his victims, and forfeiture of his house, an automobile, and a brokerage account. In May 2014, Babiarz pleaded guilty to wire fraud and aggravated identity theft.
Following his September 2011 termination from Bishop, Rosen & Co., a retail brokerage firm headquartered in New York, Babiarz falsely told some of his former clients that he had taken a job at Fidelity Investments, the Boston-based asset management firm. Babiarz told other clients that he was working as an independent financial advisor. Babiarz told his clients that he could continue to manage their money if they opened online brokerage accounts at Fidelity, assisted them to open such accounts, and in so doing, set up the user names and passwords for those accounts. Unbeknownst to his clients, Babiarz then caused their funds – or money he borrowed in their names on margin – to be diverted to accounts that he controlled at several other banks and brokerage firms. Babiarz used the money to buy a new home and a car – assets that the Court ordered forfeited today – and to pay other personal expenses.
Babiarz was previously charged in an administrative complaint brought by the Massachusetts Securities Division with engaging in unregistered and fraudulent activities in violation of the Massachusetts Uniform Securities Act and applicable regulations.
United States Attorney Carmen M. Ortiz and Shelly A. Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The case was prosecuted by Assistant United States Attorney Stephen E. Frank of Ortiz’s Economic Crimes Unit.
Opelousas Resident Sentenced for Counterfeit Monetary Instrument SchemeRead the Press Release
LAFAYETTE, La. –An Opelousas man was sentenced last week to 23 months in prison and five years of supervised release for taking part in an international scheme to defraud banks and victims across the country, U.S. Attorney Stephanie A. Finley announced today.
Nelson Durald, 49, of Opelousas, La., was also ordered Thursday by U.S. District Judge Richard T. Haik to pay restitution to identifiable victims and amounts of loss in conjunction with the conviction for one count of conspiracy to commit bank fraud. According to evidence presented at the March 26, 2014, guilty plea, Durald participated in a scheme from the end of 2011 to June 2013 to defraud banks and other financial institutions by cashing and asking other victims to cash fake monetary instruments such as checks and money orders that were shipped to Durald from other countries. Durald and other co-conspirators, some located within the United States and others in foreign countries, worked together to recruit victims to participate in a “Secret Shopper” program. Durald would mail fake monetary instruments to victim participants and ask them to cash the negotiable instruments at their bank or other financial institution as part of a seemingly legitimate Secret Shopper Program. The victim participant was instructed to send a portion of the cash obtained on the counterfeit instrument to another co-conspirator. Victims did this not knowing the monetary instruments they were attempting to cash were fake, which resulted in a loss to the victim participants and banks. At the time of Durald’s arrest, 316 counterfeit monetary instruments had been seized. The total amount of all counterfeit financial instruments was $247,829.15.
The St. Landry Parish Sheriff’s Office and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Myers P. Namie prosecuted the case.