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24 October 2014
U.S. Attorney Announces Two Lauderdale County Men Charged in Scrapyard Metal ScandalRead the Press Release
Memphis, TN – Nick Wright, age 43 and Jerry Vaden, age 43, both of Gates, Tenn., were indicted last week by a federal grand jury on charges of mail fraud, structuring cash transactions to avoid reporting requirements, false statements to federal agents and obstruction of justice, announced Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee and 25th District Attorney General Mike Dunavant.
The twelve-count indictment alleges that beginning in June 2013 and continuing until February 2014, Wright, owner of Wrights Auto Parts and Metals LLC, located in Gates, Tennessee, subcontracted with Vaden, owner of Vaden Trucking, also of Gates, Tennessee, to supply drivers to remove scrap metals from Apex Tool Group (Apex) in Springdale, Arkansas and deliver it to Wright’s scrapyard. Prior to weighing loads obtained from Apex, Wright would allegedly have a portion of the scrap metal removed from each load and then prepare invoices and checks to be mailed to Apex which falsely represented the true weight of the load removed from their facility. It is further alleged that Wright would then reload the scrap metal he had previously removed onto one of Vaden’s trucks and have it driven to other scrapyards to be sold.
It is also alleged that Wright would deposit the proceeds from the resale of the scrap metal in his business bank account and attempt to avoid the reporting requirements of transactions over $10,000 by structure his deposits as a “less cash transaction.” Wright would receive cash back in amounts just under $10,000. Wright and Vaden both allegedly made false and fraudulent statements to federal agents during the course of the criminal investigation.
Wright and Vaden have been charged with eight counts of mail fraud, one count of structuring cash transactions to avoid reporting requirements, one count of making false statements to federal agents and obstruction of justice If convicted they face up to 45 years in prison and a fine of up to $1 million.
U.S. Attorney Stanton praised the investigative work of the Federal Bureau of Investigation, the Tennessee Highway Patrol and the 25th District Attorney General’s Office.
This case is being prosecuted for the government by Special Assistant United States Attorney Samuel Stringfellow.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Note that there may not always be supplemental materials like the Adobe Acrobat .pdf file below.
U.S. Attorney Announces Former U.S. Postal Service Employee Sentenced to Federal Prison for Stealing Meds from VeteransRead the Press Release
Memphis, TN – Edward L. Stanton III, United States Attorney for the Western District of Tennessee announced today that Patricia F. Baker, 50, of Memphis, TN was sentenced this week by U.S. District Judge Sheryl H. Lipman to serve 18 months in federal prison followed by three years of supervised release, forfeit $4,000 and was ordered to pay restitution of $2,720 to her victims who incurred pain and hospital stays because of her actions. There is no parole in the federal prison system.
According to the Indictment: Patricia Baker was a United States Postal Service mail handler who, over the course of four years, stole thousands of dollars in medication such as hydrocodone and Viagra from Armed Forces veterans throughout the region. Ms. Baker would make small tears in Veterans Administration parcels to determine whether the medications inside would be marketable. She enlisted the assistance of both her son and husband in a conspiracy to distribute the controlled substances, making at least $8,500 in profits while veterans suffered.
Complaints regarding missing parcels were investigated by Postal Service Office of Inspector General (OIG) Special Agents, who caught Baker stealing items from parcels on hidden surveillance cameras. Agents witnessed Ms. Baker taking cell phones and medications from the mail and hiding them in her apron and workspace. Baker admitted to OIG agents that she had stolen a large quantity of pain medication and electronics, such as laptop computers and iPads. A search of Baker's home recovered laptop computers, computer tablets, cellular telephones and accessories, Veterans Administration prescription medications, video games, DVDs, jewelry, coins and cameras.
On March 20, 2014, a Federal Grand Jury sitting in the Western District of Tennessee returned a 21-count indictment with a Notice of Forfeiture against Ms. Baker. Baker plead guilty on July 18, 2014 to one count of destruction of mail, one count of embezzling mail and one count of conspiracy to distribute a controlled substance.
U.S. Attorney Stanton praised the investigative work of the U.S. Postal Service Office of Inspector General.
Special Assistant U.S. Attorney Ron Cummings represented the government.
Two Metro East Women Sentenced for Unemployment FraudRead the Press Release
Follow @SDILNewsTwo metro-east women have been sentenced in federal court for their convictions of theft of public funds (unemployment fraud), the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Melonetria McCallum, 38, of O’Fallon, Illinois, was sentenced to 5 years of probation and ordered to pay $14,219.97 in restitution and a $100 Special Assessment. Trudie Lindsey, 57, of East St. Louis, Illinois, was also sentenced to 5 years of probation and ordered to pay $13,751 in restitution and a $100 Special Assessment.
The two women pleaded guilty to Embezzlement of Public Funds on July 11, 2014. Documents filed in US District Court established that in each case the women applied for and received unemployment compensation from the state of Missouri at a time when they were earning income and residing in Illinois. In each case, the women falsely certified that they were eligible to receive unemployment benefits and concealed the fact that they had employment at the time they were also receiving benefits.
The Missouri Department of Employment Security administers Missouri’s unemployment program to provide temporary income replacement for individual workers who lost their jobs through no fault of their own. U.S. Attorney Stephen R. Wigginton said, “These programs are funded through the taxes paid by employers, employees, and additional federal contributions. This money is intended to serve as the fundamental safety net in society, not as a hammock for thieves who double dip.”
The investigations were conducted by agents from the US Department of Labor, Office of the Inspector General. The cases are being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
- Three Houston Men Head to Prison for Robbery of Postal Vehicle
Texan Pleads Guilty to Attempting to Entice a Minor into Producing PornographyRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced that a Texan pleaded guilty Thursday to trying to lure a minor into producing a sex video.
Sach Kevin Vu, 32, of Arlington, Texas, entered a guilty plea Thursday before U.S. District Judge S. Maurice Hicks Jr. for one count of attempting to entice a minor to engage in criminal sexual activity. According to evidence presented at the guilty plea, an undercover officer posing as a 16-year-old girl responded on February 7, 2014 to an online advertisement seeking models for a photo shoot. Vu began communicating with the officer posing as a 16-year-old girl and set up a meeting in Haynesville, La., where he planned to produce a pornographic video. He communicated in detail beforehand about what kinds of sex acts he wanted performed. Vu was arrested on February 20, 2014 in Haynesville, La., after traveling there from Texas. Sex toys and camera equipment were found in his vehicle.
Vu faces 10 years to life in prison, not less than five years of supervised release, and a fine of $250,000. He is also required to register as a sex offender. A sentencing date of February 9, 2015 was set.
The FBI and the Claiborne Parish Sheriff’s Office investigated the case. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit .
Those concerned may also leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Shreveport FBI office number is (318) 861-1890.Storm Lake Man Convicted of Credit Card FraudRead the Press Release
A man who committed multiple frauds was convicted by a jury October 23, 2014, after a three-day trial in federal court in Sioux City.
Yoirlan Tome Rojas, age, from Storm Lake, Iowa, was convicted of two counts of using a counterfeit access device; one count of possession of fifteen or more counterfeit access devices; one count of money laundering; and two counts of aggravated identity theft. The verdict was returned following about one hour of jury deliberations.
The evidence at trial showed that Rojas manufactured credit cards and utilized those cards to conduct purchases at Walmart and various other places of business in the Storm Lake, Iowa, area. Rojas would use the manufactured credit cards to purchase gift cards to later use to make “legitimate” purchases. At least two of the cards Rojas utilized belonged to individuals who reported unauthorized use of their credit cards.
Sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared. Rojas remains in custody of the United States Marshal pending sentencing. On all of the charges, Rojas faces a possible maximum sentence of 10 years’ imprisonment, a $500,000 fine, $600 in special assessments, and up to three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Jamie Bowers and was investigated by the Storm Lake Iowa Police Department and the United States Secret Service.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-4015.
Statesboro Man Sentenced to 15 Years for Requesting and Receiving Child PornographyRead the Press Release
Statesboro, GA: Stuart Powell Johnson, 52, of Statesboro, Georgia, was sentenced earlier this week by United States District Court Chief Judge Lisa Godbey Wood to 15 years in prison, followed by twenty years of supervised release, for soliciting images of child pornography over the Internet. He will be required to register as a sex offender. Johnson pled guilty to the crime on June 16, 2014.
United States Attorney Edward Tarver said, “Using the Internet in an effort to access images depicting child sexual abuse promotes the further victimization of our children and cannot be tolerated. The U. S. Attorney’s Office aggressively prosecutes individuals, like this defendant, who exploit our children. This defendant committed a serious crime for which a lengthy punishment is justified.”
“This is an entirely appropriate sentence for a defendant who trafficked in the sexual exploitation of children,” said Brock D. Nicholson, Special Agent in Charge of Immigration Customs Enforcement Homeland Security Investigations (ICE HSI), in Atlanta. “Most importantly, we were able to identify and save a previously unknown victim who was suffering from abuse in Texas through the outstanding work of our computer forensics analyst in Savannah. In the fight against child pornography, these innocent victims will always come first for HSI.”
Evidence presented during the guilty plea and sentencing hearings revealed that Johnson, who had previously been convicted of a child-pornography-related offense when in the military, used an email account and an international website to solicit images depicting child sexual abuse for his own sexual gratification. At the time Johnson was a registered sex offender, and used other individuals’ computers and wireless connections in an effort to avoid detection. Significantly, the forensic review of a number of the images located in Johnson’s email account led to the identification of a girl in San Antonio who was being sexually exploited there.
This prosecution was the result of a cooperative investigation conducted by HSI in St. Louis, Savannah, and HSI’s Cyber Crimes Center. Law enforcement assistance was also provided by the Bulloch County Sheriff’s Office, and the Florida Department of Law Enforcement. The case was brought as part of Project Safe Childhood, which is a nationwide U. S. Department of Justice initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.
Assistant United States Attorney Nancy Greenwood, Deputy Criminal Chief and Project Safe Childhood Coordinator, prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
St. Thomas Man Sentenced to 67 Months IncarcerationRead the Press Release
St. Thomas, USVI- District Court Judge Curtis V. Gomez sentenced Hector Mejia-Patino, 26, of St. Thomas, Virgin Islands, on October 23, 2014, to 67 months of incarceration, five years of supervised release, and a $100 special monetary assessment announced United States Attorney Ronald W. Sharpe and U.S. Drug Enforcement Administration (DEA) Special Agent in Charge Vito Guarino.
According to the plea agreement, from June 2013 thru September 2013, Mejia-Patino participated in several telephone conversations and exchanged text messages with an undercover Task Force Officer (“UC”) assigned to the DEA in order to conduct a transaction involving multiple kilograms of cocaine. During one of those conversations, Mejia-Patino agreed to introduce the UC to his co-conspirator to facilitate the drug transaction because Mejia-Patino was out of the territory at the time. The UC traveled to St. Thomas and met with Mejia-Patino's co-conspirators at the Crown Bay Marina. Before the drug transaction was completed, the co-conspirators were arrested for possessing 11 kilograms of cocaine. On January 10, 2014, Mejia-Patino was arrested for his role in this offense. On April 3, 2014, Mejia-Patino pleaded guilty to one count of conspiracy to distribute five kilograms or more of cocaine.
U.S. Attorney Sharpe commended the efforts of the U.S. Drug Enforcement Administration, which investigated the case. The case was prosecuted by Assistant U.S. Attorney Ishmael A. Meyers, Jr.
Shreveport Man, Texas Man Sentenced for Methamphetamine Distribution ConspiracyRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced that a Shreveport man and a Texas man were sentenced Thursday to 219 months and 168 months in prison, respectively, for their roles in a methamphetamine distribution operation that stretched from Natchitoches, La., to Mexico.
Raymond D. Conley, 39, of Shreveport, was sentenced Thursday to 219 months in prison and Santiago Lopez, 41, of Harlingen, Texas, was sentenced to 168 months in prison by U.S. District Judge Donald E. Walter for conspiracy to possess with intent to distribute 50 grams or more of methamphetamine. They were also sentenced to five years of supervised release. According to evidence presented at the February 6, 2014 guilty pleas, law enforcement authorities became aware that Conley was storing illegal drugs at a girlfriend’s residence in Natchitoches. The property was searched on September 9, 2013, and Conley and Lopez were found there. They also found three large plastic wrapped bundles, one of which field tested positive for methamphetamine, and 13 one-ounce baggies containing methamphetamine. Conley admitted to storing the drugs at the Natchitoches home, and Lopez admitted to transporting the drugs from Mexico to the Natchitoches area for distribution.
“Those who deal in illegal narcotics will be brought to justice,” Finley stated. “We will continue to protect our communities from those who want to pollute them with dangerous drugs. I want to commend the prosecutor and the law enforcement agencies in this case for their hard work and dedication to this case.”
The defendants were arrested as part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation code named “Crystal Bend.” The DEA, ATF, Louisiana State Police, and Natchitoches Multi-Jurisdictional Task Force participated in this OCDETF operation. Assistant U.S. Attorney James G. Cowles Jr. prosecuted the case.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle targeted criminal organizations and seize their assets.Shamokin Man Charged with Production, Distribution and Possession of Child PornographyRead the Press Release
The United States Attorney for the Middle District of Pennsylvania, announced that charges were filed yesterday against Abraham D. Gordon, a resident of Shamokin, Pennsylvania.
According to United States Attorney, Peter Smith, Gordon, age 32, is charged in a three-count Indictment with production, distribution, and possession of child pornography. The offenses are alleged to have occurred between March and June 2014.
The investigation was conducted by the Pennsylvania State Police Computer Crime Task Force and the Federal Bureau of Investigation, Williamsport Office. Assistant United States Attorney Wayne P. Samuelson is assigned to prosecute the case.
Indictments 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 statues and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statutes is thirty years imprisonment, and a fine of $250,000. 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.
Seven Perry County Residents Charged with Methamphetamine ConspiracyRead the Press Release
Follow @SDILNewsSeven Perry County residents were indicted on October 7, 2014, in an indictment, charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Brant A. Sizemore, 38, Stephanie A. Ellis, 36, Clint D. Williams, 31, Clinton Waters, 37, and Donald K. Brown, a/k/a “D.J.,” 31, all of DuQuoin, Joseph E. Soldan, Sr., 44, of Tamaroa, and Jamey A. Carson, 35, of Pinckneyville, are charged in an indictment with conspiracy to manufacture methamphetamine. The indictment alleges that the offense occurred between 2012 and September 2014, in Perry, Jackson, Randolph, Williamson, and Franklin Counties. Waters and Carson made their initial appearances in federal court in Benton on October 20, 2014. At their October 22, 2014, detention hearings, they were both ordered held without bond pending a December 15, 2014, jury trial. Sizemore, Ellis, and Brown have previously appeared and are being held without bond. Waters and Soldan are set to make their initial appearances in federal court on October 28, 2014.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The methamphetamine offense carries a maximum penalty of up to 20 years in federal prison, to be followed by 3 years’ supervised release, and a $1,000,000 fine.
The ongoing investigation is being conducted by the Perry County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Drug Task Force, Murphysboro Police Department, and DuQuoin Police Department. The Pinckneyville Police Department and Illinois State Police Methamphetamine Response Team assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Riverside, CA Man Sentenced to 51 Months, $2.5 Million Restitution and $3 Million Forfeiture for Money LaunderingRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that DAVID LEWIS McDOWELL, age 52, of Riverside, California was sentenced to 51 months imprisonment for Money Laundering, in violation of Title 18, United States Code, Section 1957. McDOWELL was also ordered to pay approximately $2,500,000.00 in restitution and to forfeit $3,000,000.00 in assets.
The charge arose from an investigation by the Internal Revenue Service, Criminal Investigation and Federal Bureau of Investigation. The defendant was indicted in April, 2013 and pled guilty in March, 2014.
The Indictment alleged that on or about June 25, 2008, through November 9, 2009, in the Eastern District of Oklahoma, the defendant did knowingly engage in a monetary transaction through a financial institution, affecting interstate commerce, in a criminally derived property of a value greater than $10,000, that is, by causing money to be transferred from accounts at Ameristate Bank, such proceeds having derived from a specified unlawful activity, that is wire fraud.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Melody Nelson represented the United States.
Rio Arriba County Man Pleads Guilty to Federal Conspiracy and Mail Fraud ChargesRead the Press Release
ALBUQUERQUE – Gerald Archuleta, 43, of Ojo Caliente, N.M., pleaded guilty this morning to conspiracy and mail fraud charges arising out of a scheme to defraud the federal and state unemployment insurance system. His co-defendant, Jasonn Gonzales, 41, an accountant from Velarde, N.M., previously entered a guilty plea to the same charges, as well as an identity theft charge, in Aug. 2014.
Archuleta and Gonzales were charged in a six-count indictment that was filed on March 26, 2014. Count 1 charged the two men with conspiracy to commit mail fraud in furtherance of a scheme to defraud the federal and state Unemployment Insurance System in New Mexico, Texas and Colorado of money by false and fraudulent pretenses. Counts 2 through 5 of the indictment charged the men with mail fraud, and Count 6 charges Gonzales alone with aggravated identity theft.
According to court filings, the federal and state Unemployment Insurance System seeks to lessen the effects of unemployment through payments made to claimants (laid-off workers) on a weekly basis while the claimants seek employment. The unemployment insurance program is administered on behalf of the federal government by state workforce agencies in each state. In entering their guilty pleas, Gonzales and Archuleta admitted that between 2009 and 2012, they schemed to defraud the New Mexico Department of Workforce Solutions, the Texas Workforce Commission and the Colorado Department of Labor and Employment of more than $1,356,000 by making false and fraudulent claims for unemployment benefits in the names of real people.
Gonzales and Archuleta perpetuated their unlawful scheme by fraudulently registering numerous non-existent companies with the three state workforce agencies and filing false quarterly reports for the fictitious companies which identified claimed employees. The two men provided the names, dates of birth and social security numbers of the claimed employees to the state agencies without the knowledge or authorization of the claimed employees, who were real people. Gonzales and Archuleta then made false and fraudulent claims for unemployment benefit claims on behalf of the claimed employees of the fictitious companies. The two men opened post office boxes in New Mexico, Texas and Colorado, which they provided to the three state workforce agencies as mailing addresses for the claimed employees. The state agencies mailed debit cards to the claimed employees at the post office boxes and the defendants used the debit cards to withdraw the fraudulently obtained benefits. During the life of the conspiracy, Gonzales and Archuleta submitted fraudulent claims for unemployment benefits in the aggregate amount of $1,356,461, and defrauded the three state workforce agencies of approximately $801,848, in total.
During today’s hearing, Archuleta entered a guilty plea to Count 1 through 5 of the indictment. Under the terms of his plea agreement, Archuleta will be sentenced to a prison term within the range of 87 to 108 months to be followed by a term of supervised release to be determined by the court. The plea agreement also requires Archuleta, jointly with Gonzales, to pay $734,123.73 in restitution. Archuleta’s sentencing hearing has yet to be scheduled.
Gonzales entered a guilty plea on Aug. 18, 2014, to all six counts of the indictment without the benefit of a plea agreement. In entering his guilty plea, Gonzales also admitted to the forfeiture provisions of the indictment and to the entry of an $801,848 money judgment against him. At sentencing, Gonzales faces a statutory maximum penalty of 20 years in federal prison on the conspiracy charge and each of the five mail fraud charges. He also will be sentenced to a two-year mandatory prison sentence to be served consecutive to any sentence imposed on the conspiracy and mail fraud charges. Gonzales’ sentencing date has yet to be scheduled.
This case was investigated by the Department of Labor Office of Inspector General, Office of Labor Racketeering and Frauds Investigations, and the U.S. Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorney Tara C. Neda.
Rapid City Man Sentenced for Theft from Indian Health ServicesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of Theft or Embezzlement in Connection with Health Care was sentenced on October 16, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Michael Gray, age 59, was sentenced to 2 years of probation, ordered to pay a $100 special assessment to the Federal Crime Victims Fund, and restitution in the amount of $6,476.42.
Gray was indicted for Theft or Embezzlement in Connection with Health Care on March 18, 2014, and he pled guilty on June 4, 2014.
The conviction relates to Gray, while employed by an Indian Health Services (IHS) Hospital, taking equipment belonging to IHS and using a General Services Administration gas card for his personal use between 2009 and 2013.
This case was investigated by the Department of Health and Human Services, Office of the Inspector General. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Rapid City Man Sentenced for Attempted Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of Attempted Trafficking with Respect to Involuntary Servitude and Forced Labor was sentenced on October 17, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Curtis Ray Austin, age 21, was sentenced to 24 months of imprisonment, 3 years of supervised release and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Austin will also be required to register as a sex offender.
On August 10, 2013, as part of a sex-trafficking undercover operation during the Sturgis Bike Rally, Austin was arrested for attempting to obtain sex with a 15 year-old girl. Austin responded to a law enforcement-generated Internet advertisement which advertised sex with a fictitious 15 year-old girl, and he negotiated the terms of the sexual encounter. Austin then met with an undercover agent, who was posing as someone who could provide the young girl for sex in trade for an engagement ring, and Austin had the ring and condoms in his possession. Austin was subsequently arrested.
The investigation was conducted by the South Dakota Internet Crimes Against Children Taskforce, South Dakota Division of Criminal Investigation, Federal Bureau of Investigation, Rapid City Police Department, Pennington County Sheriff’s Office, and the Meade County Sheriff’s Office. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Austin was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Distribution of Child Pornography and Possession of Child Pornography.
Nicholas Adam Jensen, age 24, was indicted on September 23, 2014. He appeared before U.S. Magistrate Judge Veronica Duffy on October 14, 2014, and pled not guilty to the Indictment.
The penalty upon conviction is a mandatory minimum of 5 years’ imprisonment up to 20 years’ imprisonment and/or a $250,000 fine, lifetime of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment charges that between March 2013 and April 2013, at Rapid City, Jensen knowingly distributed and possessed computers files containing images of child pornography.
The charges are merely accusations and Jensen is presumed innocent until and unless proven guilty.
The investigation was conducted by the South Dakota Internet Crimes Against Children Task Force. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Jensen was released pending trial. A trial date has not been set.
Press Release by United States Attorney Relating to November 2014 ElectionsRead the Press Release
Contact Person: Barbara Bowens (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles, District of South Carolina announced today that Assistant United States Attorneys (AUSA) Barbara M. Bowens and John Potterfield will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 4, 2014, general elections. AUSAs Bowens and Potterfield have been appointed to serve as the District Election Officers (DEO) for the District of South Carolina , and in that capacity, they are responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Nettles said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Nettles stated that AUSAs Bowens and Potterfield will be on duty in this District while the polls are open. They can be reached by the public at the following telephone numbers: (803) 929-3052 and (803) 929-3092.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. Special Agent Christopher Garrett of the local FBI field office has been appointed for election duty and can be reached by the public at (803) 214-5630.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Nettles said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”Pataskala Man Sentenced to 144 Months for Attempting to Engage in Sexual Activty with A MinorRead the Press Release
COLUMBUS, OHIO – Richard Roman, 42, of Pataskala, Ohio was sentenced in U.S. District Court to 144 months in prison and 20 years supervised release for attempting to engage in unlawful sexual activity with a minor.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Mark Porter, Special Agent in Charge, U.S. Secret Service (USSS) and members of the Franklin County Internet Crimes Against Children (ICAC) Task Force announced the sentence handed down today by U.S. District Court Judge Algenon L. Marbley.
According to court documents, Roman was discovered by undercover agents with the Franklin County ICAC Task Force after he posted a classified on Craigslist.org titled “I wanna be your Daddy.” On January 16, Roman communicated with undercover agents to arrange what he believed would be a sexual encounter with an 11-year-old female.
Subsequent to these communications, Roman was placed under arrest by members of the ICAC Task Force. Investigators discovered candy, a flower, chewing gum, condoms and a bottle of personal lubricant in Roman’s vehicle.
“Although the defendant’s offense in this case fortunately did not involve a real child, the defendant’s words and actions explicitly demonstrate that he had every intention to sexually abuse an 11-year-old child on repeated occasions” Assistant U.S. Attorney Heather Hill told the court.
Roman pleaded guilty on May 8 to one count of attempting to coerce or entice a minor to engage in unlawful sexual activity. Roman has been in custody since his arrest.
The Franklin County ICAC Task Force is a multi-agency effort dedicated to the fight against computer facilitated crimes against children. The following agencies are members:
Franklin County Sheriff’s Office Upper Arlington Police Department
Grove City Police Department Columbus Police Department
Grandview Heights Police Department Whitehall Police Department
Hilliard Police Department Westerville Police Department
Homeland Security Investigations U.S. Secret Service
Ohio ICAC Franklin County Prosecutor's OfficeThis case is being brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney's Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims.
U.S. Attorney Stewart commended the investigation by the USSS, as well as Assistant United States Attorney Heather Hill and Special Assistant U.S. Attorney Jennifer Rausch, who represented the United States in this case.
Pair Sentenced for Making and Passing Counterfeit BillsRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Christopher Williams, age 28, from Conyers, Georgia, and David Birdsong, aged 32, from Lithia Springs, Georgia, were sentenced on October 22, 2014, to serve nearly four years (45 months) imprisonment and pay restitution in the amount of $700. The sentences were handed down by the Honorable Hugh Lawson, Senior United States District Judge, in Valdosta, Georgia.Mr. Williams and Mr. Birdsong entered guilty pleas on July 7, 2014 to manufacturing 72 counterfeit $50 Federal Reserve Notes using a scanner/copier/printer. In addition, they admitted that on February 7, 2014, they used 14 of the counterfeit $50 bills to purchased $700 in prepaid debit cards from two Family Dollar Stores in Valdosta, Georgia. The two were arrested when Mr. Birdsong attempted to use four more counterfeit bills to purchase a $200 prepaid debit card at a Family Dollar Store in Quitman, Georgia. Store employees were suspicious of the bills and contacted police, leading to the arrest. A search of their car produced more than $3000 in counterfeit $50 and $100 bills and scanner/copier/printer, which was found in the trunk of the car.
“The United States has a particular interest in bringing to justice those who seek to steal from other by making and using counterfeit Federal Reserve Notes. The sentences in this case demonstrate that those who do so will spend significant time repaying what they have tried to steal, both from the victimized businesses and the public. Thanks to the diligence of the store employees and fast action from the police, these two were caught and could not spend any more of the counterfeit money they had made.” said United States Attorney Michael J. Moore.
The case was investigated by the United States Secret Service, Valdosta Police Department and Quitman Police Department. Assistant United States Attorney Robert D. McCullers prosecuted the case for the Government.Inquiries regarding the case should be directed to Pamela Lightsey at the United States Attorney’s Office (478/621-2603).
November 2014 ElectionsRead the Press Release
Follow @NDFLNewsTALLAHASSEE, FLORIDA -- Assistant United States Attorney Christopher P. Canova will lead the efforts of the United States Attorney's Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 4, 2014, general elections. AUSA Canova has been appointed to serve as the District Election Officer and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses, in consultation with Justice Department Headquarters.
The Department of Justice has an important role in deterring election fraud and discrimination at the polls. The Department’s long-standing Election Day Program seeks to ensure public confidence in the integrity of the election process by providing local points of contact for the public to report election violations while the polls are open on Election Day. This program deters election fraud and discrimination by increasing the Department’s ability to prosecute these offenses whenever and wherever they occur.
United States Attorney Pamela C. Marsh said, “It is the mission of the Department of Justice to act promptly and aggressively to protect the integrity of the election process. Discrimination, voter interference, and election fraud will not be tolerated. I encourage anyone with knowledge of voting abuses or election fraud to immediately contact my office, the FBI, or the Department of Justice, so that we may ensure an open and fair election process."
Federal law protects against such crimes as harassing, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. Further, federal law protects the right of voters to be assisted by a person of their choice.
To respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, AUSA/District Election Officer Christopher P. Canova will be on duty in this District while the polls are open. He can be reached at
(850) 942-8430.The FBI will also have Special Agents available in each field office and resident agency in the Northern District of Florida to receive and respond to allegations of election fraud, voter intimidation, voter suppression, and other election abuses. The FBI can be reached by the public at (904) 248-7000.
Complaints about possible violations of federal voting rights laws can be made directly to the Civil Rights Division=s Voting Section in Washington at (800) 253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected], or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
North Carolina Man Sentenced to over 21 Years in Prison for Meth ConspiracyRead the Press Release
NORFOLK, Va. – Lester Keith Gunter, a/k/a “Gunner,” 45, of Hazelwood, North Carolina, was sentenced today to 262 months in prison, followed by eight years of supervised release for conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine.
Dana J. Boente, United States Attorney for the Eastern District of Virginia and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
According to court documents, Gunter and his co-conspirators were a group of affiliated methamphetamine distributors operating in the Haywood County, North Carolina area who, from late 2011 through early 2013, sold large quantities of methamphetamine to a series of Norfolk-based redistributors.
Gunter was indicted in a superseding indictment filed on July 9, 2014 and was found guilty by a federal jury on July 18, 2014. Co-conspirators Rhonda Jo Raxter, John Clinton Cathey, and Jerimy Dayne Dennis pled guilty prior to the superseding indictment. Rhonda Jo Raxter, a/k/a “Rhonda Jo Aurand,” pled guilty on June 4, 2014 and was sentenced to 60 months in prison. John Clinton Cathey, a/k/a “Cat Hair,” pled guilty on July 2, 2014 and was sentenced to 36 months in prison. Jerimy Dayne Dennis, a/k/a “Worm,” pled guilty on June 12, 2014 and was sentenced to 75 months in prison.
This case was investigated by Homeland Security Investigations, the Virginia Beach Police Department and the Haywood County (NC) Sheriff’s Office. Assistant U.S. Attorney Darryl J. Mitchell 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. 2:13-cr-176.
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New York Man Sentenced for Selling Counterfeit GoodsRead the Press Release
United States Attorney Brendan V. Johnson announced that a New York man convicted of Trafficking in Counterfeit Goods or Services was sentenced on October 17, 2014, by U.S. Chief Judge Jeffrey L. Viken, U.S. District Court.
Samuel Ascolese, age 45, was sentenced to 12 months and 1 day of imprisonment, 3 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $72,652.99 in restitution.
In August 2013, during the Sturgis Motorcycle Rally, Ascolese, owner of Custom Tattoo Apparel, knowingly sold counterfeit T-Shirts. The counterfeits were from many different trademark holders including Monster Energy, Sons of Anarchy (20th Century Fox), Honda, Acura, Jack Daniels, Ford/Powerstroke, Cummins, Kawasaki, Suzuki, Dodge/Mopar/Chrysler, and Browning.
The investigation was conducted by the U.S. Immigration and Customs Enforcement's Homeland Security Investigations. Assistant U.S. Attorney Sarah B. Collins prosecuted the case. Ascolese was immediately turned over to the custody of the U.S. Marshals Service.
Navajo Man from Arizona Sentenced to Eight Years for Aggravated Sexual Assault ConvictionRead the Press Release
ALBUQUERQUE – Vernon J. Atcitty, 29, an enrolled member of the Navajo Nation who resides in Sweetwater, Ariz., was sentenced today for his aggravated sexual assault conviction. Atcitty will serve an eight-year prison term followed by five years of supervised release. He also will be required to register as a sex offender after he completes his prison sentence.
Atcitty was arrested on Feb. 26, 2014, on a criminal complaint charging him with aggravated sexual abuse, and subsequently was indicted on that same charge on March 11, 2014. According to court filings, Atcitty sexually assaulted a Navajo woman on Feb. 22, 2014, in Shiprock, N.M., which is located within the Navajo Indian Reservation.
On May 23, 2014, Atcitty entered a guilty plea to the indictment. Atcitty admitted taking the victim to an abandoned house and refusing to let her leave until after he raped her. Atcitty admitted forcing the victim to succumb to his demands by punching and grabbing her, and by telling her that he would not let her leave the abandoned house.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety with assistance from the Farmington office of the FBI, and was prosecuted by Assistant U.S. Attorney Kyle T. Nayback.The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Muskegon Computer Professional Sentenced to Four Years in Prison for Defrauding Catholic Health SystemRead the Press Release
Creighton Goins Ordered To Repay $921,158 To Trinity Health
GRAND RAPIDS, MICHIGAN – Creighton Lonel Goins, 45, of Muskegon, was sentenced to 48 months in federal prison for fraudulently stealing technology equipment paid for by his employer and reselling those items on the Internet. Goins was ordered to pay $921,158 in restitution to the victim of the scheme, Trinity Health. He will serve three years of supervised release after his prison sentence. Goins was immediately remanded to the custody of the U.S. Marshal. The Honorable Robert Holmes Bell, U.S. District Judge, imposed the sentence.
Goins pled guilty in June 2014 to one count of wire fraud in a scheme involving his former employer, Trinity Health, one of the largest Catholic health care delivery systems in the nation. Goins committed his scheme to defraud between 2006 and 2010 while employed by Trinity as a senior information technology services manager. Goins misused his purchase authority to buy computer equipment converted the stolen items to cash by selling them at discounted prices on the Internet. At the height of the fraud, Goins used a freight service to ship an entire pallet of computer equipment to a warehouse and distribution facility in New York for delivery to one of his regular purchasers of the stolen items.
U.S. Attorney Patrick Miles, Jr. said, “Trinity Health provided Mr. Goins with a good job, promoted him to management, and entrusted him with the supervision of the information technology system for one of its subsidiaries, Mercy Health Partners. In return, Goins systematically stole more than $900,000 over four years that went undetected because of his position and deceptive conduct. This sentence will punish him for stealing from a non-profit community health organization that provides free or reduced health care services in the Muskegon area, and should deter others from committing this type of crime.”
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Christopher O’Connor..
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Montana Man Sentenced for Health Care FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a Colstrip, Montana, man convicted of Health Care Fraud was sentenced on October 16, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Dean L. Hodges, age 59, was sentenced to 2 years of probation, ordered to pay a $100 special assessment to the Federal Crime Victims Fund, and restitution in the amount of $686.
Hodges was indicted for Theft in Connection with Health Care, Health Care Fraud, False Statements Relating to Health Care Matters, and Acquiring Controlled Substances by Fraud by a federal grand jury on February 19, 2014. He pled guilty to Health Care Fraud on June 30, 2014.
The conviction stems from Hodges, while employed by the Indian Health Services as the Chief Pharmacist for the Kyle Health Center, taking Hydrocodone and Codeine for his own use between January and October 2013.
This case was investigated by the Department of Health and Human Services, Office of the Inspector General. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Middleboro Man Sentenced to 13 Years on Child Assault CrimeRead the Press Release
BOSTON – Keith Gage, 43, of Middleboro, was sentenced yesterday for coercing and enticing a minor for the purpose of engaging in sexual intercourse. U.S. District Judge F. Dennis Saylor IV sentenced Gage to 13 years in prison and five years of supervised release. Gage is also required to register as a sex offender, and must refrain from contact with his victim during the period of his incarceration and supervised release. In July 2014, Gage pleaded guilty.
Gage met the 14-year-old victim on TeenSpot.com, a website designed for young teens but which has been increasingly used by predators to contact young victims. He persuaded her to meet with him and engage in sexual intercourse on multiple occasions. Gage also videotaped his victim performing sexual acts. Gage was apprehended when the victim came forward and reported his criminal acts, at which time an undercover federal agent assumed the victim’s identity online, ultimately leading to Gage’s arrest.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the United States Postal Inspection Service; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Easton Chief of Police Allen Krajcik, made the announcement today. This case was prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz's Major Crimes Unit.
Miami Resident Sentenced for Identity Theft Schemes Involving Fraudulent Social Security Benefits and Income Tax Refunds After Initially Failing to AppearRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Thomas Caul, Special Agent in Charge, Social Security Administration (SSA), Office of Inspector General (OIG), and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Emmanuel A. Adeife, of Miami, was sentenced today to 76 months in prison, followed by three years of supervised release, and was ordered to pay restitution of $321,213.70.
Adeife previously pled guilty today to one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(2), one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A, and one count of failure to appear, in violation of Title 18, United States Code, Sections 3146(a)(1) and 3146(b)(1)(A)(ii).
According to court documents, from January to October 2013, Adeife filed approximately 112 Social Security Retirement Income Benefit (RIB) claims using names, dates of births, and social security numbers belonging to real people without their permission. Adeife directed that the RIB payments be paid onto prepaid debit cards in his control from which he made ATM withdrawals and conducted other transactions. He received RIB payments totaling $194,213.70 in connection with 45 of the claims.
On October 18, 2013, the grand jury returned an Indictment charging Adeife with access device fraud and aggravated identity theft (Case No. 13-20803-CR-Zloch), and Adeife was granted a bond. The Court later set a change of plea hearing for March 6, 2014 in this case, but Adeife knowingly failed to appear at the hearing, despite his attendance being required as a condition of his previous release. Adeife remained a fugitive until his second arrest on June 20, 2014.
After Adeife’s failure to appear, the law enforcement investigation into Adeife’s whereabouts revealed that he continued on the same conduct involving stolen identity fraud. Law enforcement analysis of the debit cards associated with Adeife revealed that Adeife, while on bond, filed stolen identity tax returns seeking approximately $198,000 in fraudulent refunds, of which he actually received approximately $127,000.
Mr. Ferrer commended the investigative efforts of SSA-OIG and IRS-CI. The case was prosecuted by Assistant U.S. Attorney Frank R. Maderal.
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.
Member of FARC Terrorist Organization Sentenced to 27 Years in Prison on Hostage-Taking Charges in 2003 Capture of U.S. CitizensRead the Press Release
Alexander Beltran Herrera, 38, a commander of the Fuerzas Armadas Revolucionarias de Colombia (FARC) terrorist organization, was sentenced today to 27 years in prison on federal hostage-taking charges stemming from the 2003 capture of three U.S. citizens in Colombia. All told, members of the FARC held the Americans hostage for 1,967 days.
The sentence was announced by John P. Carlin, Assistant Attorney General for National Security, Ronald C. Machen Jr., U.S. Attorney for the District of Columbia and George L. Piro, Special Agent in Charge of the FBI’s Miami Division.
Beltran Herrera, aka Jhon Alexander Beltrain Herrera, aka Rodrigo Pirinolo, pled guilty on March 18, 2014, in the U.S. District Court for the District of Columbia, to three counts of hostage-taking. He was sentenced by the Honorable Senior Judge Royce C. Lamberth.
“In February 2003, the FARC – a Colombian terrorist organization – kidnapped three American citizens and held them captive for nearly 2,000 days,” said Assistant Attorney General Carlin. With the sentence handed down today, Alexander Beltran Herrera is being held accountable for his role in those offenses. This case underscores our resolve to pursue and bring to justice those who target our citizens with violence anywhere in the world. I want to thank all of the prosecutors, agents, and analysts who made this result possible.”
“This Colombian terrorist will spend the next 27 years in an American prison for his role in holding three U.S. citizens captive overseas,” said U.S. Attorney Machen. “Our fellow citizens were held hostage for more than five years under brutal conditions. This extradition, prosecution, and incarceration should chasten terrorists who doubt our resolve to serve justice on those who harm American citizens on foreign soil.”
“Alexander Beltran Herrera, a former terrorist commander for the Fuerzas Armadas Revolucionarias de Colombia (FARC), will now be held accountable for his role in holding three U.S. citizens hostage in Colombia for 1,967 days,” said Kelly M. Darden, Acting Special Agent in Charge of the FBI’s Miami Division. “Essential to bringing Beltran Herrera to justice was our close cooperation with the Colombian National Police.”
According to the government’s evidence, the FARC is an armed, violent organization in Colombia. Since its inception in 1964, it has engaged in an armed conflict to overthrow the Republic of Colombia, South America’s longest-standing democracy. The FARC has consistently used hostage taking as a primary technique in extorting demands from the Republic of Colombia, and hostage taking has been endorsed and commanded by FARC senior leadership. The FARC has characterized American citizens as “military targets” and has engaged in violent acts against Americans in Colombia, including murders and hostage taking. The FARC was designated as a foreign terrorist organization by the U.S. Secretary of State in 1997 and remains so designated.
Beltran Herrera, a commander in the FARC, was involved in the hostage taking of three United States citizens: Marc D. Gonsalves, Thomas R. Howes, and Keith Stansell. These three, along with Thomas Janis, a United States citizen, and Sergeant Luis Alcides Cruz, a Colombian citizen, were seized on Feb. 13, 2003, by the FARC, after their single-engine aircraft made a crash landing in the Colombian jungle.
Members of the FARC murdered Janis and Cruz near the crash site. Gonsalves, Howes, and Stansell were held by the FARC at gunpoint and were advised by FARC leadership that they would be used as hostages to increase pressure on the government of Colombia to agree to the FARC’s demands. At various times, the FARC marched the hostages from one site to another, placing them in the actual custody of various FARC fronts.
At the conclusion of one 40-day long march, in or about November 2004, the hostages were delivered to members of the FARC’s 27th Front, who imprisoned the hostages for nearly two years. During part of this period, Beltran Herrera was responsible for moving the hostages and keeping them imprisoned. Throughout the captivity of these three hostages, FARC jailors and guards used choke harnesses, chains, padlocks and wires to restrain the hostages, and used force and threats to continue their detention and prevent their escape. In July 2008, the Colombian military conducted a daring operation which resulted in the rescue of the hostages.
Beltran Herrera was indicted in February 2011 and was extradited to the United States from Colombia in March 2012.
This case was investigated by the FBI’s Miami Division. The prosecution was handled by Assistant U.S. Attorneys Anthony Asuncion and Fernando Campoamor-Sanchez from the National Security Section of the U.S. Attorney’s Office for the District of Columbia, and Trial Attorney David Cora, from the Counterterrorism Section of the Justice Department’s National Security Division. The case was indicted by Assistant U.S. Attorney Kenneth Kohl, of the National Security Section of the U.S. Attorney’s Office.
The FBI’s Miami Division partnered in the investigation with the Justice Department’s Office of International Affairs, the Department’s Judicial Attachés in Colombia, and the FBI’s Office of the Legal Attaché in Bogota, Colombia. The Directorate of Intelligence (DIPOL) and the Anti-Kidnapping Unit (GAULA) of the Colombian National Police also provided valuable support during the investigation.
Member of FARC Terrorist Organization Sentenced to 27 Years in PrisonRead the Press Release
On Hostage-Taking Charges in 2003 Capture of U.S. Citizens
Hostages Were Held in Colombia for More Than Five YearsWASHINGTON – Alexander Beltran Herrera, 38, a commander of the Fuerzas Armadas Revolucionarias de Colombia (FARC) terrorist organization, was sentenced today to 27 years in prison on federal hostage-taking charges stemming from the 2003 capture of three U.S. citizens in Colombia. All told, members of the FARC held the Americans hostage for 1,967 days.
The sentence was announced by John P. Carlin, Assistant Attorney General for National Security, Ronald C. Machen Jr., U.S. Attorney for the District of Columbia and George L. Piro, Special Agent in Charge of the FBI’s Miami Division.
Beltran Herrera, aka Jhon Alexander Beltrain Herrera, aka Rodrigo Pirinolo, pled guilty on March 18, 2014, in the U.S. District Court for the District of Columbia, to three counts of hostage-taking. He was sentenced by the Honorable Senior Judge Royce C. Lamberth.
“In February 2003, the FARC – a Colombian terrorist organization – kidnapped three American citizens and held them captive for nearly 2,000 days,” said Assistant Attorney General Carlin. With the sentence handed down today, Alexander Beltran Herrera is being held accountable for his role in those offenses. This case underscores our resolve to pursue and bring to justice those who target our citizens with violence anywhere in the world. I want to thank all of the prosecutors, agents, and analysts who made this result possible.”
“This Colombian terrorist will spend the next 27 years in an American prison for his role in holding three U.S. citizens captive overseas,” said U.S. Attorney Machen. “Our fellow citizens were held hostage for more than five years under brutal conditions. This extradition, prosecution, and incarceration should chasten terrorists who doubt our resolve to serve justice on those who harm American citizens on foreign soil.”
“Alexander Beltran Herrera, a former terrorist commander for the Fuerzas Armadas Revolucionarias de Colombia (FARC), will now be held accountable for his role in holding three U.S. citizens hostage in Colombia for 1,967 days,” said Kelly M. Darden, Acting Special Agent in Charge of the FBI’s Miami Division. “Essential to bringing Beltran Herrera to justice was our close cooperation with the Colombian National Police.”
According to the government’s evidence, the FARC is an armed, violent organization in Colombia. Since its inception in 1964, it has engaged in an armed conflict to overthrow the Republic of Colombia, South America’s longest-standing democracy. The FARC has consistently used hostage taking as a primary technique in extorting demands from the Republic of Colombia, and hostage taking has been endorsed and commanded by FARC senior leadership. The FARC has characterized American citizens as “military targets” and has engaged in violent acts against Americans in Colombia, including murders and hostage taking. The FARC was designated as a foreign terrorist organization by the U.S. Secretary of State in 1997 and remains so designated.
Beltran Herrera, a commander in the FARC, was involved in the hostage taking of three United States citizens: Marc D. Gonsalves, Thomas R. Howes, and Keith Stansell. These three, along with Thomas Janis, a United States citizen, and Sergeant Luis Alcides Cruz, a Colombian citizen, were seized on Feb. 13, 2003, by the FARC, after their single-engine aircraft made a crash landing in the Colombian jungle.
Members of the FARC murdered Janis and Cruz near the crash site. Gonsalves, Howes, and Stansell were held by the FARC at gunpoint and were advised by FARC leadership that they would be used as hostages to increase pressure on the government of Colombia to agree to the FARC’s demands. At various times, the FARC marched the hostages from one site to another, placing them in the actual custody of various FARC fronts.
At the conclusion of one 40-day long march, in or about November 2004, the hostages were delivered to members of the FARC’s 27th Front, who imprisoned the hostages for nearly two years. During part of this period, Beltran Herrera was responsible for moving the hostages and keeping them imprisoned. Throughout the captivity of these three hostages, FARC jailors and guards used choke harnesses, chains, padlocks and wires to restrain the hostages, and used force and threats to continue their detention and prevent their escape. In July 2008, the Colombian military conducted a daring operation which resulted in the rescue of the hostages.
Beltran Herrera was indicted in February 2011 and was extradited to the United States from Colombia in March 2012.
This case was investigated by the FBI’s Miami Division. The prosecution was handled by Assistant U.S. Attorneys Anthony Asuncion and Fernando Campoamor-Sanchez from the National Security Section of the U.S. Attorney’s Office for the District of Columbia, and Trial Attorney David Cora, from the Counterterrorism Section of the Justice Department’s National Security Division. The case was indicted by Assistant U.S. Attorney Kenneth Kohl, of the National Security Section of the U.S. Attorney’s Office.
The FBI’s Miami Division partnered in the investigation with the Justice Department’s Office of International Affairs, the Department’s Judicial Attachés in Colombia, and the FBI’s Office of the Legal Attaché in Bogota, Colombia. The Directorate of Intelligence (DIPOL) and the Anti-Kidnapping Unit (GAULA) of the Colombian National Police also provided valuable support during the investigation.
14-241Medical Assistant Sentenced for Stealing Patients’ Identities from the Memorial Healthcare System DatabaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announce that La Toya Yvette Tillman, 33, of Hollywood, was sentenced today to 36 months in prison, followed by three years of supervised release.
Tillman previously pled guilty to one count of possessing fifteen or more unauthorized access devices with the intent to defraud, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, Tillman, who worked as a medical assistant at Gastroenterology Consultants in Hollywood, confessed to accessing the Memorial Healthcare System database through her computer at work to steal patient identities, including names, dates of birth, and social security numbers, so that she could sell them. She sold an individual approximately 2,000 identities for $1 each, and the individual told her that he used the identities to file fraudulent tax returns. In addition, in her car, Tillman had a list of 114 identities that included names, dates of birth, and social security numbers. Tillman knew that the victims did not authorize her to possess their personal identifying information.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case was prosecuted by Assistant U.S. Attorney Vanessa Snyder.
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.
Massachusetts Man Sentenced to 21 Months in Prison for Role in Multimillion-Dollar International Cybercrime SchemeRead the Press Release
Defendant Managed a “Cash-Out” Crew for Organization that Allegedly Capitalized on Information Hacked From Customers of More Than a Dozen Global Financial Institutions
TRENTON, N.J. – A member of an international cybercrime, identity theft and credit card fraud conspiracy was sentenced today to 21 months in prison for using information hacked from customer accounts held at more than a dozen banks, brokerage firms, payroll processing companies and government agencies in an attempt to steal at least $15 million from American customers, U.S. Attorney Paul J. Fishman announced.
Robert Dubuc, 41, of Malden, Massachusetts, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of wire fraud conspiracy and one count of conspiracy to commit access device fraud and identity theft. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in the case and statements made in court:
Both Dubuc and Oleg Pidtergerya, 50, of Brooklyn, New York, were asked by leaders of the conspiracy to participate in a scheme to “cash out” bank accounts and pre-paid debit cards opened in the names of others. Oleksiy Sharapka, 34, of Kiev, Ukraine, allegedly directed the conspiracy with the help of Leonid Yanovitsky, 39, also of Kiev. Pidtergerya managed a cash-out crew in New York for Sharapka and Yanovitsky, and defendant Dubuc controlled a cash-out crew in Massachusetts for the organization.
Conspiring hackers first gained unauthorized access to the bank accounts of customers of more than a dozen global financial institutions and businesses, including: Aon Hewitt; Automatic Data Processing Inc.; Citibank N.A.; E-Trade; Electronic Payments Inc.; Fundtech Holdings LLC, iPayment Inc.; JP Morgan Chase Bank N.A.; Nordstrom Bank; PayPal; TD Ameritrade; U.S. Department of Defense, Defense Finance and Accounting Service; TIAA-CREF; USAA; and Veracity Payment Solutions Inc.
After obtaining unauthorized access to the bank accounts, Sharapka and Yanovitsky diverted money to other bank accounts and pre-paid debit cards they controlled. They then implemented a sophisticated “cash-out” operation, employing crews of individuals known as “cashers” to withdraw the stolen funds from the fraudulent accounts, among other ways, by making ATM withdrawals and fraudulent purchases in New York, Massachusetts, Illinois, Georgia and elsewhere. Both Sharapka and Yanovitsky are under indictment in the United States and remain at large.
During their guilty plea proceedings, Pidtergerya and Dubuc admitted they were aware fraudulent accounts and cards were created without the consent of the individuals in whose names they were opened. Both men admitted coordinating ATM and bank withdrawals of the stolen funds. In addition they admitted to sending proceeds of the fraud to Sharapka and Yanovitsky in Ukraine.
The government’s ongoing investigation into the organization has so far identified attempts to defraud the victim companies and their customers of more than $15 million.
In addition to the prison term, Judge Sheridan sentenced Dubuc to serve three years of supervised release and pay restitution in the amount of $338,685. Sentencing for Pidtergerya is scheduled for Dec. 22, 2014.
U.S. Attorney Fishman credited the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; U.S Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees; Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Jeffery D. Thorpe, Cyber Field Office; and IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the ongoing investigation.
The government is represented by Economic Crimes Unit Chief Gurbir S. Grewal of the U.S. Attorney’s Office in Newark.
The charges contained in the indictment against Sharapka and Yanovitsky are merely allegations and the defendants are presumed innocent unless and until proven guilty.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
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Defense counsel: Dubuc: Angelo Servidio Esq., Nutley, N.J.
Marion Man Ordered to Pay Restitution, FineRead the Press Release
A Marion man was ordered to pay restitution and a fine and was sentenced to a term of probation following his conviction on a charge of making and causing a false statement on an annual statement regarding a company 401k plan, said Steven M. Dettelbach, United States Attorney.
John Richard Blazer, 68, was sentenced by Senior U.S. District Judge James G. Carr, who also imposed a $2,800 fine.
Blazer was charged in 2013 with several felony violations. His conduct involved a company named Neo-Wood Manufacturing, Inc., located in Alvada, Ohio. Neo-Wood, which was owned by John E. Werner III, maintained a 401k profit-sharing plan for its employees. Werner was also the sole trustee of the 401k plan. The Neo-Wood plan was subject to the Employee Retirement Income Security Act (ERISA), and under that Act, Neo-Wood was required to submit an annual financial report (Form 5500), which required among other items a report of assets held by the plan, and a disclosure of prohibited transactions with parties-in-interest to the plan, according to court documents.
On or about January 28, 2008, Blazer induced Werner to remove $28,000 from the Neo-Wood plan, and send that money to Blazer. Shortly thereafter, Blazer returned to Werner personally $25,200, or 90 percent of the money removed, and Blazer kept $2,800. This transaction was done by Werner and Blazer without the knowledge or authorization of the Neo-Wood employees, and the withdrawal left virtually no funds in the plan, according to court documents.
On or about April 30, 2009, an annual Form 5500 was submitted to the U.S. Department of Labor by Werner at Neo-Wood. The Form 5500 falsely reported that the $28,000 removed by Werner and Blazer remained in the plan as an asset. The Form 5500 also falsely omitted the commission of a prohibited transaction with the transfer through Blazer to Werner personally, according to court documents.
Prior to the taking of the $28,000, there had been three prior transfers totaling $140,000 in funds removed from the Neo-Wood 401k plan and given to Blazer. As a result of this investigation and prosecution, prior to Blazer’s guilty plea, $221,649 in restitution was paid by Blazer to the custodian of the Neo-Wood plan. This restitution payment, which included interest, resulted in restoring almost all of the improperly-removed funds to the Neo-Wood employee 401k accounts.
This case was investigated by the Employee Benefits Security Administration of the U.S. Department of Labor. The case was prosecuted by Assistant U.S. Attorneys Thomas Karol and James V. Moroney.
Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Guilty Plea of Bank Employee to Insider Trading ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that DAVID POST pled guilty today in Manhattan federal court to one count of conspiracy to commit securities fraud and three counts of securities fraud in connection with an insider trading scheme in which POST received material, nonpublic information from a co-conspirator (“CC-1”) who worked for a pharmaceutical company (the “Pharma Company”). POST then made profitable securities trades based on the information provided by CC-1 and reaped over $700,000 in profits. The information concerned potential and actual corporate transactions, including acquisitions. POST pled guilty before U.S. District Judge Alvin K. Hellerstein.
In a separate action, the U.S. Securities and Exchange Commission (“SEC”) announced civil charges against POST.
According to the Information and statements made at today’s plea proceeding in Manhattan federal court:
From at least 2010 through August 2014, POST engaged in an insider trading scheme involving trading around information related to the acquisitions of certain pharmaceutical companies. POST received material, nonpublic information related to potential acquisitions from CC-1, who was a Senior Finance Analyst in the Financial Evaluation and Analysis Group of the Pharma Company. POST and CC-1 communicated with each other via disposable cellphone to disguise their communications. As part of his employment, CC-1 performed work in connection with numerous potential and actual corporate transactions, including acquisitions. CC-1 also had access to a computer directory maintained by the Pharma Company which contained material, nonpublic information related to potential acquisitions by the Pharma Company.
POST on multiple occasions received from CC-1 material, nonpublic information related to future acquisitions by the Pharma Company, including the identities of companies that were in negotiations with the Pharma Company for potential acquisitions (the “Target Companies”). POST then traded in the securities of the Target Companies. The Target Companies were subsequently acquired, in one instance by the Pharma Company, and the prices of the shares of the Target Companies increased after the acquisitions were announced publicly. POST then sold his positions in the shares of the Target Companies, thereby profiting from the movement in stock price. From this illegal trading, POST earned profits in excess of $737,000. POST gave approximately $57,000, in cash, of his illegal proceeds to CC-1, as part of CC-1’s share of the scheme’s profits.
POST, 42, of Livingston, New Jersey, pled guilty to one count of conspiracy to commit securities fraud and three counts of securities fraud. The conspiracy count carries a maximum sentence of five years in prison. The three counts of securities fraud each carry a maximum of 20 years in prison. POST also faces a maximum fine of $5,000,000, or twice the gross gain or loss from the offense on the conspiracy count, and agreed as part of his plea agreement to forfeit the proceeds he obtained as a result of the offenses. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. POST is scheduled to be sentenced by Judge Hellerstein on February 6, 2015 at 11:00 a.m.
Mr. Bharara praised the investigative work of the FBI. He also thanked the SEC for its assistance.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jessica Masella and Edward Kim are in charge of the prosecution.
U.S. v. David Post Information
Manager/Owner of Pain Clinic Convicted of Conspiracy, Distribution of A Controlled Substance and Money Laundering F0llowing Jury TrialRead the Press Release
DENVER -- Keith A. Schwartz, age 47, of Silverthorne, Colorado, was found guilty today of conspiracy, distribution of a controlled substance and money laundering following a 14-day jury trial before Senior U.S. District Court Judge John L. Kane. The jury deliberated for a day and a half before reaching their verdict. A sentencing date has not yet been set. Schwartz, who has been in custody since his indictment, was remanded following the jury verdict. This is the first case of its kind that has gone to a jury trial in the U.S. District Court in the District of Colorado.
Schwartz was indicted by a federal grand jury in Denver on May 22, 2013. He was found guilty of one count of conspiracy to distribute and dispense controlled substances, prescription drugs outside the course of usual professional medical practice, two counts of distribution and dispensing a controlled substance and aiding and abetting the same, four counts of use of a telephone to facilitate a drug crime, one count of conspiracy to commit money laundering, and 36 counts of money laundering. The defendant was found not guilty of two counts of use of a telephone to facilitate a drug crime and two counts of money laundering.According to the indictment and evidence presented at trial, Schwartz, in conjunction with co-conspirators, all of but one of whom have previously pled guilty, knowingly conspired and agreed to dispense and distribute, or facilitate the dispensing and distribution of controlled substances, to patients at times and in circumstances outside the usual course of professional medical practice. He then laundered the proceeds from the patients through bank accounts in his wife’s name. The patients didn’t have a sufficient medical necessity for the prescription of the controlled substances. The primary prescription drug involved in the case was Oxycodone, with over one half million dosage units prescribed in an 18 month period.
Specifically, Schwartz, using an alias, approached a pain doctor named Kevin Clemmer in May of 2011, who at the time was housed in the Federal Detention Center in Englewood, Colorado after his indictment for the unlawful prescription of controlled substances. Schwartz offered to purchase the list of Clemmer’s patient lists, most of whom received substantially more narcotic or other controlled substance medication than was medically necessary.
That same month, after obtaining the patient list, Schwartz, and his co-conspirators, first saw Dr. Clemmer’s patients in a Holiday Inn in Wheat Ridge, Colorado, where they enlisted and worked with co-conspirator Dr. Joseph Ferrara, who was registered with the DEA to write prescriptions for controlled substances. The pain clinic eventually moved into office space, and Schwartz, who was the owner, manager, organizer and operator, had direct communications with patients regarding Dr. Ferrara’s treatment regimen. The defendant induced Dr. Ferrara to unlawfully write opioid and benzodiazepine prescriptions in large numbers to addicted patients – the amounts of which far exceeded the amount medically necessary and safe to use. In fact, the government presented expert testimony that proved that many of the controlled substance prescriptions written were up to four times the safe medical limit. As a result of the unlawful distribution of controlled substances, medication prescribed by Schwartz’s pain clinic contributed to the death of at least three patients.
The relationship among the co-conspirators began in the summer of 2009, when Schwartz recruited and Dr. Ferrara to write medical marijuana recommendations to support Schwartz’s marijuana grow in his house. During 2009 and 2010, the medical marijuana business expanded to include travel throughout the state of Colorado, where Dr. Ferrara wrote medical marijuana recommendations. In May of 2011, the conspiracy shifted its primary focus to distribution of prescription controlled substances while also maintaining the medical marijuana recommendation business.
Schwartz laundered the money obtained by the pain clinic by placing it in bank accounts in corporations in the name of his wife. Schwartz used some of the illegally obtained money to purchase his $1.6 million house out of foreclosure.
Schwartz faces up to life in federal prison, as well as a fine of not more than $1,000,000 for his convictions.
This case was investigated by the Tactical Diversion Squad of the DEA, which includes members of the IRS Criminal Investigation and the Greenwood Village Police Department. The Arvada Police Department assisted in the investigation as well.The defendant is being prosecuted by Assistant U.S. Attorney M.J. Menendez.
Man Faces up to 10 Years in Federal Prison for Sending Obscene Material to A Lubbock Police Officer Posing Online as A 13 Year-Old Female in an Undercover OperationRead the Press Release
LUBBOCK, Texas — A 52-year-old League City, Texas, man appeared in federal court in Lubbock, Texas, this morning and pleaded guilty to a federal child obscenity offense, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Nilanjan Brahma pleaded guilty before U.S. District Judge Sam R. Cummings to one count of attempted transfer of obscene materials to a minor. He faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine, and three years of supervised release. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Brahma remains on bond.
According to plea documents filed in the case, from approximately April 25, 2011, through February 19, 2012, Brahma engaged in a series of communications, via messaging, texting,, and telephone, with a person he believed to be a 13-year-old female, “Jane Doe,” who represented that she lived in Lubbock, Texas. In fact, Jane Doe was an undercover officer with the Lubbock Police Department.
On April 25, 2011, Brahma chatted with Jane Doe and sent her nine photographs. Five of those photographs depict an adult male engaged in sexually explicit conduct and are considered obscene.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Lubbock Police Department, the FBI, and the League City Police Department investigated the case. Assistant U.S. Attorney Steven M. Sucsy is prosecuting.
Louisiana Man Sentenced to Eight Months in Prison for Abusive Sexual Contact of Sleeping Woman on Flight to New JerseyRead the Press Release
Also Must Register as Sex Offender
NEWARK, N.J. - A Louisiana man was sentenced today to eight months in prison for sexually touching a sleeping woman who did not know him aboard a flight from Houston to Newark Liberty International Airport, U.S. Attorney Paul J. Fishman announced.
Devender Singh, 62, an Indian national who lives in Baton Rouge, Louisiana, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with abusive sexual contact. Judge Chesler imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
Singh was seated next to a woman who occupied a window seat on a United Airlines flight from Houston to Newark. While the plane was in the air, the woman fell asleep. She awoke to find Singh kissing her face with his hand inside her shirt.
After pushing Singh off of her and telling him to get away, the woman went to the back of the plane and told a flight crew member what had happened, asking that the police be present when the plane landed.
The federal government has exclusive jurisdiction over all sexual abuse cases that occur on aircraft in flight in the United States.
In addition to the prison term, Judge Chesler sentenced Singh to serve two years of supervised release and required him to register as a sex offender.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and the Port Authority Police Department, under the direction of Superintendent Michael A. Fedorko, with the investigation.
The government is represented by J. Jamari Buxton of the U.S. Attorney’s Office Criminal Division in Newark.14-388
Defense counsel: Candace Hom Esq., Assistant Federal Public Defender, Newark
Justice Department Settles Immigration-Related Discrimination Claim Against Hearing Services CompanyRead the Press Release
The Justice Department announced today that it reached an agreement with Serendipity Hearing Inc., doing business as Sonus Hearing Care (Sonus), a hearing services provider headquartered in the Los Angeles, California, metropolitan area. The agreement resolves a claim, filed with the Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC), that the company violated the Immigration and Nationality Act (INA) by engaging in discriminatory documentary practices during the employment eligibility verification process.
The department’s investigation found that Sonus required the complainant, a lawful permanent resident it had hired, to produce a new employment eligibility document when her Permanent Resident Card expired, even though the Form I-9 and E-Verify rules prohibit this practice because lawful permanent residents have permanent work authorization in the United States after their Permanent Resident Cards expire. When the complainant failed to present her new Permanent Resident Card, Sonus terminated her. The INA’s anti-discrimination provision prohibits employers from making additional and unauthorized documentary demands based on citizenship status or national origin when verifying or re-verifying an employee’s employment eligibility.
“The Civil Rights Division is committed to identifying and tearing down discriminatory barriers that prevent work-authorized individuals from employment,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “The Division commends Sonus for working to resolve this matter expeditiously.”
Under the settlement agreement, Sonus will pay $16,727 in back pay to the charging party and $400 in civil penalties to the United States, undergo training on the anti-discrimination provision of the INA, revise its employment eligibility re-verification policies and be subject to monitoring of its employment eligibility verification practices.
OSC is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation. This matter was handled by Trial Attorney Luz V. Lopez-Ortiz and Paralegal Specialist Ryan Thompson.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired), call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired), sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php, email [email protected] or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship status, immigration status, or national origin, or discrimination based on their citizenship status, immigration status or national origin in hiring, firing, or recruitment or referral for a fee, should contact OSC’s worker hotline for assistance.
Joint Press Release by Arkansas United States Attorneys Relating to November 2014 ElectionsRead the Press Release
LITTLE ROCK – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Connor Eldridge, United States Attorney for the Western District of Arkansas, announced today that Assistant United States Attorney (AUSA) Tricia Harris and First Assistant United States Attorney (FAUSA) Kenny Elser will lead the efforts of their Offices in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 4, 2014, general elections. AUSA Harris has been appointed to serve as the District Election Officer (DEO) for the Eastern District of Arkansas, and FAUSA Elser will serve as the DEO for the Western District of Arkansas. As DEOs, they are responsible for overseeing their District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
In a joint statement, United States Attorneys Thyer and Eldridge said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Harris will be on duty in the Eastern District and FAUSA/DEO Elser will be on duty in the Western District while the polls are open. They can be reached by the public at the following telephone numbers: AUSA Harris- 501-340-2600; FAUSA Elser- 479-494-4071.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. FBI special agents will be available on election day in Arkansas and can be reached by the public at 501-221-9100.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorneys Thyer and Eldridge said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
International Hacker SentencedRead the Press Release
ATLANTA - Sergei Nicolaevich Tšurikov has been sentenced to eleven years in prison for conspiracy to commit wire fraud and computer intrusion for his involvement in an elaborate scheme which stole over $9.4 million from a credit card processor.
“A leader of one of the most sophisticated cybercrime rings in the world has been brought to justice and sentenced,” said United States Attorney Sally Quillian Yates. “In just one day in 2008, an American credit card processor was hacked in perhaps one of the most sophisticated and organized computer fraud attacks ever conducted. Almost exactly one year later, the leaders of this attack were charged. This prosecution was successful because of the efforts of the victim, and unprecedented cooperation from various law enforcement agencies worldwide.”
According to United States Attorney Yates, the charges and other information presented in court: During November 2008, Tšurikov and others obtained unauthorized access into the computer network of RBS WorldPay, what was then the U.S. payment processing division of the Royal Bank of Scotland Group PLC, located in Atlanta, Ga. The group used sophisticated hacking techniques to compromise the data encryption that was used by RBS WorldPay to protect customer data on payroll debit cards. Payroll debit cards are used by various companies to pay their employees. By using a payroll debit card, employees are able to withdraw their regular salaries from an ATM.
Once the encryption on the card processing system was compromised, the hacking ring raised the account limits on compromised accounts, and then provided a network of cashers with 44 counterfeit payroll debit cards, which were used to withdraw more than $9 million from over 2,100 ATMs in at least 280 cities worldwide, including cities in the United States, Russia, Ukraine, Estonia, Italy, Hong Kong, Japan and Canada. The $9 million loss occurred within a span of less than 12 hours.
The hackers then sought to destroy data stored on the card processing network in order to conceal their hacking activity. The cashers were allowed to keep 30 to 50 percent of the stolen funds, but transmitted the bulk of those funds back to Tšurikov and his co-defendants. Upon discovering the unauthorized activity, RBS WorldPay immediately reported the breach, and has substantially assisted in the investigation.
Throughout the duration of the cashout, Tšurikov and another hacker monitored the fraudulent ATM withdrawals in real-time from within the computer systems of RBS WorldPay.Tšurikov, 30, of Tallinn, Estonia was sentenced by United States District Judge Steve C. Jones to eleven years, three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $8,400,000. Tšurikov pleaded guilty to these charges on September 11, 2012.
This case was investigated by Special Agents of the Federal Bureau of Investigation. Assistance was provided by international law enforcement partners. The United States Secret Service also participated in the investigation. RBS World Pay immediately reported the crime and has substantially assisted in the investigation.
Assistant United States Attorneys Lawrence R. Sommerfeld and Kamal Ghali prosecuted the case. Assistance was provided by the Justice Department Criminal Division’s Computer Crime and Intellectual Property Section and the Office of International Affairs.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Indictment Unsealed Charging Oklahoma City Attorney with Conspiracy Involving Travel from Oklahoma City to Peru to Engage in Sex with Children Under 18Read the Press Release
Oklahoma City, Oklahoma – Today, a federal grand jury indictment was unsealed charging MICHAEL DEAN BILLINGS, 59, an attorney from Oklahoma City, with conspiracy involving travel from Oklahoma City to Iquitos, Peru to engage in illicit sex with children, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to the three-count indictment, for over a decade beginning on February 2, 2003, and continuing through September 2013, Billings and others conspired to commit sex trafficking of children by recruiting and obtaining children in Peru to engage in commercial sex acts and further conspired to travel from Oklahoma City to Iquitos, Peru, to engage in illicit sexual conduct with children under 18 years of age. Specifically, the indictment includes three counts: Count 1 alleges conspiracy to commit sex trafficking of children, Count 2 alleges conspiracy to travel with intent to engage in illicit sexual conduct, and Count 3 alleges conspiracy to engage in illicit sexual conduct in foreign places. Reference is made to the indictment and court record for further information.
Billings was arrested earlier today at his law office and appeared before United States Magistrate Judge Suzanne Mitchell in Oklahoma City. He was ordered to be held without bond pending a final detention hearing will be held on Monday, October 27th at 4:00 p.m. before Judge Mitchell.
If convicted, Billings faces up to life in prison, a $250,000 fine, and registration as a sex offender for life. The public is reminded that the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is the result of an investigation by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Robert Don Gifford, II, and David Petermann.
Indianapolis Man Sentenced to over 7 Years in Prison and Ordered to Pay More Than $10 Million to Victims of His Ponzi SchemeRead the Press Release
ALEXANDRIA, Va. – Timothy J. Coughlin, 63, of Indianapolis, Indiana, was sentenced today to 90 months in prison, followed by three years of supervised release, for defrauding thousands of investors and impersonating an Internal Revenue Service official while operating a fictitious credit union for the purpose of soliciting online investments. He was also ordered to pay restitution of $10,084,625.56 to more than 3,500 victims.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; Andrew J. Ceresney, Enforcement Director at the U.S. Securities and Exchange Commission (SEC); and J. Russell George, Treasury Inspector General for Tax Administration (TIGTA), made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
Coughlin pleaded guilty to wire fraud and impersonating a federal officialon June 25, 2014. According to court documents, from around 2006 through March 2014, Coughlin operated the Oxford International Credit Union and anotheronline investment vehicle known as the Oxford International Cooperative Union. Investors from many countries paid annual dues to participate in the Oxford entities and made investments through online payment processors. As part of the scheme, Coughlin createda website through which he posted false information to investors’ online accounts indicating that their deposits were earning significant daily returns, which averaged 0.471% each trading day from January 2007 through December 2009 (equivalent to a 356% average annual rate of return). To further the fraud, Coughlin posted a fake certificate stating that each investors’ deposits were insured up to $50,000, and he also made audio recordings in which he falsely claimed that members were earning significant returns on their investments.
By the end of 2009, Coughlin had ceased approving requests for account withdrawals from investors, claiming that taxing authorities in the United States and Canada were freezing Oxford’s assets abroad. In January 2012, Coughlin falsely announced to investors that he had reached an agreement to resolve the tax issues, and he created a fictitious agreement on which he forged the signatures of an actual IRS employee in Washington, DC, and a lawyer based in New York.
This case was investigated by the FBI’s Washington Field Office, SEC, and TIGTA. Assistant U.S. Attorney Jack Hanly prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-221.
Imposter Pleads Guilty to Using False Identification at Champlain Port of EntryRead the Press Release
ALBANY, NEW YORK – WALTER ELICER LUNA CAYSEDA, 49, of Bronx, New York, pled guilty yesterday in Plattsburgh, New York, to making a false statement and aggravated identity theft before United States District Court Judge David N. Hurd announced United States Attorney Richard S. Hartunian, and U.S. Customs Director of Field Operations, Randy Howe, Buffalo, New York. On the false statement count, LUNA CAYSEDA faces up to five years in prison, supervised release of up to 3 years, and a fine of up to $250,000. He faces an additional consecutive sentence of at least two years on the aggravated identity theft count. Sentencing is scheduled for February 20, 2015 in Utica, New York.
“Given our on-going concerns for security on our borders, it is critically important we know the people entering and leaving our country are, indeed, who they say they are,” stated U.S. Attorney Hartunian. “I commend the Department of Homeland Security and the border agents for their continued vigilance.”
As part of his guilty plea, LUNA CAYSEDA admitted that on August 26, 2014, during an immigration inspection at the Champlain Port of Entry, he gave a false name and stated that he was a United States Citizen born in Puerto Rico when he was actually a citizen of Columbia who had been removed from the United States in 1997. LUNA CAYSEDA also admitted that he used a New York State Driver’s license bearing his picture and the true biographical information of the person he was pretending to be as proof of his identity and citizenship.
The case was investigated by the Department of Homeland Security, Customs and Border Protection, Champlain, New York. The case was prosecuted by Assistant United States Attorney Edward P. Grogan.
Illinois Lawyer and Internet Radio Talk Show Host Convicted in $9.7 Million Mortgage Fraud SchemesRead the Press Release
CHICAGO — An Illinois lawyer and Internet radio talk show host was convicted today on federal charges for engaging in two mortgage fraud schemes that defrauded lenders of a total of approximately $9.7 million. The defendant, WARREN BALLENTINE, schemed with others to obtain more than two dozen fraudulent mortgage loans and represented buyers at multiple closings, knowing that they were fraudulently qualified for loans to purchase homes in Chicago and various southern suburbs.
Ballentine, 43, of Durham, N. Car., and formerly of Country Club Hills, owned the Law Office of Warren Ballentine, LLC, in Country Club Hills. He was found guilty of two counts of bank fraud, two counts of making false statements to lenders, and one count each of mail fraud and wire fraud by a jury that deliberated less than an hour total late yesterday and today following a trial that began Monday in U.S. District Court.
Ballentine remains free on bond pending sentencing, which was set for Jan. 21, 2015, before U.S. District Judge Matthew Kennelly. Ballentine faces a maximum penalty on each count of 30 years in prison and a $1 million fine or an alternate fine of twice the gross gain or twice the loss, whichever is greater, and restitution is mandatory. Ballentine is also subject to forfeiture of more than $9.7 million.
The Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
According to the evidence, between December 2004 and February 2005, Ballentine schemed with others to fraudulently cause various lenders to make at least eight loans totaling approximately $3.6 million by making false statements in loan documents, including applications, HUD-1 settlement statements, and occupancy statements concerning the buyers’ intention to occupy the homes they purchased as a primary residence. Ballentine then represented buyers recruited by others at real estate closings, knowing that they had signed and submitted false documents and had been fraudulently qualified to purchase the properties in Chicago, Monee, Woodridge, and Mokena.
Between February 2005 and May 2006, Ballentine engaged in a similar, separate scheme with others to fraudulently cause various lenders to make at least 20 loans totaling approximately $6.1 million by making false statements in mortgage documents, including the buyers’ intention to occupy the homes as a primary residence. Ballentine also represented these buyers at closings, knowing that they had been fraudulently qualified for the loans based on false documents, including some that Ballentine advised them to sign at closings. These homes were scattered throughout Chicago and other suburbs, including Country Club Hills, Richton Park, and Markham.
The guilty verdict 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 Antonio Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.
The government is being represented by Assistant U.S. Attorneys Jason Yonan and Andrew S. Boutros.
Illegal Alien, Twice Deported, Arrested in Nashville-Wanted for Murder in El SalvadorRead the Press Release
Cesar Cruz-Marin, 39, a citizen of El Salvador, was arrested yesterday in Nashville and charged with unlawful re-entry into the United States, after being convicted of an aggravated felony, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
Cruz-Marin was arrested following an investigation by Homeland Security Investigations and the U.S. Marshal’s Fugitive Task Force. Agents had been searching for him after being notified that he was a fugitive from El Salvador, where he was wanted for aggravated homicide, which was alleged to have occurred in December 2010. At the time of his arrest, Cruz-Marin was using the name Manuel Aguirre.
According to the criminal complaint, Cruz-Marin was deported to El Salvador from California, in 1998, after being convicted of involuntary manslaughter and serving time in prison for his part in a gang-related murder.
In July 2009 Cruz-Marin was again found in a jail in the United States and was again removed from the U.S. by Immigration officials.
If convicted, Cruz-Marin faces up to 20 years in prison and a $250,000 fine. He is also subject to deportation.This case is being investigated by the U.S. Marshal’s Fugitive Task Force and Homeland Security Investigations. The case is being prosecuted by Asst. U.S. Attorney Clay Lee.
Charges brought by a criminal complaint are merely accusations. All persons are presumed innocent unless and until proven guilty in a court of law.
Identity Theft Scheme Results in over 18 Years in Collective Prison Sentences for Three Metro-Area ResidentsRead the Press Release
Oklahoma City, Oklahoma – Sanford C. Coats, United States Attorney for the Western District of Oklahoma, announced that three individuals were sentenced yesterday to serve over eighteen years in prison collectively for their involvement in an identity theft scheme. United States District Judge Robin J. Cauthron sentenced DERRICK JAY ALBERS, 39, to 120 months in prison, RACHEL LYNN HALL, 40, to 63 months in prison, and CRYSTAL DAWN TRUITT, 29, to 40 months in prison, for their involvement the scheme. Albers, Hall, and Truitt primarily resided in and around the Oklahoma City metropolitan area during the commission of the scheme.
On March 18, 2014, a federal grand jury indicted Albers, Hall, and Truitt for conspiracy to commit wire fraud. According to court records, from June 2013 until January 2014, the defendants obtained billing and financial information, including credit card numbers, for corporate and individual third parties and used these numbers, along with merchant ID numbers belonging to corporate entities, to create what appeared to be genuine credit cards. The defendants used these cards and the fraudulent IDs they had made to purchase services and merchandise both in stores and on-line. The defendants then brokered the merchandise and services on the streets for cash and drugs.
On May 7, 2014, Albers, Hall, and Truitt each pled guilty to conspiracy to commit wire fraud.
In addition to the prison terms imposed yesterday, Judge Cauthron also ordered the defendants to pay $110,814.15 in restitution and serve three years of supervised release when they are released from prison. In pronouncing the sentences, Judge Cauthron cited to the defendants’ lengthy criminal histories, the long-lasting effects borne by the victims of the scheme, and the need to adequately deter criminal conduct.
This case is the result of investigations conducted by the Oklahoma City Economic and Identity Crimes Task Force, the United States Secret Service, the Oklahoma City Police Department, and the Midwest City Police Department. The case was prosecuted by Assistant U.S. Attorney Travis D. Smith.
Georgia Residents Charged for Their Role in Subjecting Hispanics to Unlawful Traffic StopsRead the Press Release
Today, the Justice Department announced that the Grand Jury for the Middle District of Georgia charged Miguel Angel Reyes and Gloria Gallego with conspiring with former Lowndes County Sheriff’s Deputy Jason Stacks to use Stacks’ law enforcement authority to violate Hispanic motorists’ civil rights, as well as with actually carrying out the scheme. The indictment was unsealed for Reyes yesterday and for Gallego today.
The indictment charges that Reyes and Gallego conspired with Stacks to subject Hispanic motorists to unlawful traffic stops so that the conspirators could demand that the motorists pay money in order to avoid arrest and/or deportation, in violation of the motorists’ right under the Fourth Amendment of the U.S. Constitution to be free from unreasonable seizures of person and property. The indictment also charges Reyes and Gallego with working with Stacks to unlawfully stop motorist T.C., and to use the threat of arrest and/or deportation to take $300 from T.C.
Additionally, the indictment charges Reyes with working with Stacks to detain motorist E.B. without probable cause or reasonable suspicion, in order to facilitate a robbery of E.B.’s home, in violation of E.B.’s rights under the Fourth Amendment of the U.S. Constitution to be free from unreasonable seizures of his person.
The civil rights conspiracy charge against Reyes and Gallego carries a maximum penalty of 10 years imprisonment. The two substantive civil rights charges against Reyes each carry a maximum penalty of one year imprisonment, and the one substantive civil rights charge against Gallego carries a maximum penalty of one year imprisonment.
This case is being investigated by the Federal Bureau of Investigation, with assistance from the Lowndes County Sheriff’s Office. The matter is being prosecuted by Trial Attorney Risa Berkower of the Justice Department’s Civil Rights Division, with support from the U.S. Attorney’s Office for the Middle District of Georgia.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendants are presumed innocent unless and until proven guilty.
Four Men Indicted in $1.6 Million FraudRead the Press Release
Charges Include SNAP (food stamp) Fraud, Tax Fraud, and Sale of Counterfeit Goods
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Qais Hussein, 43, and Majdi Odeh, 45, both of Swansea, Illinois, were charged on October 22, 2014, with Conspiracy to Unlawfully Acquire Supplemental Nutrition Assistance Program (SNAP) Benefits (formerly known as Food Stamp benefits), Aiding and Assisting in the Preparation and Presentation of False Tax Returns, and Trafficking in Counterfeit Goods in an Indictment returned by a Federal Grand Jury sitting in East Saint Louis, Illinois. The Indictment also charges Hossam Ahmed, 24, of Saint Louis, Missouri, and Elsayed Hassan, 24, of Belleville, in the offense of Conspiracy to Unlawfully Acquire SNAP Benefits.
For the SNAP benefit conspiracy charge, all four men face up to 5 years in federal prison, up to a $250,000 fine, and three years of supervised release. For the two tax fraud counts, Hussein and Odeh face up to 3 years in federal prison, up to a $100,000 fine, and one year of supervised release as to each of the two counts. For the trafficking in counterfeit goods charge, Hussein and Odeh face up to 10 years in federal prison, up to a $2,000,000 fine, and three years of supervised release. Each man also faces $100 special assessment for each count.
The indictment alleges that Hussein and Odeh owned and operated Garden Grill Market, Inc. and Garden Grill Market, II, Inc. in East St. Louis, Illinois. The indictment further alleges that along with Elsayed Hassan and Hossam Ahmed they conspired to illegally pay cash at about fifty-cents on the dollar for SNAP benefit funds. This conspiracy allowed Hussein and Odeh to fraudulently receive over $1.6 million in electronic transfers to their bank accounts. The indictment also alleges that they filed false tax returns based upon the unreported fraudulent SNAP payments. Finally, the Grand Jury charged that both Hussein and Odeh in operating Garden Grill Market, II, Inc. illegally trafficked in counterfeit items from Casio, Major League Baseball, the Motion Picture Association, Prada, Coach, Fendi, Gucci and Juicy Couture.
United States Attorney Stephen R. Wigginton stated, “This indictment is another step in my efforts to aggressively investigate and prosecute those who defraud the government programs which try to help those most in need. My office, the attorneys who prosecute these cases, and the agents who work tirelessly to investigate them, simply will not stop. For those who continue to steal from this country and from those of our communities most in need, I warn you - We are coming!”
An Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the United States Department of Agriculture – Office of Inspector General – Investigations, the Internal Revenue Service – Criminal Investigation, and the United States Department of Homeland Security – Homeland Security Investigations. The case is being handled by Assistant United States Attorneys Ranley R. Killian and Liam E. Coonan.
Four Defendants Charged in Conspiracy to Distribute Testosterone and Human Growth Hormones to Underage High School and Professional AthletesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and A.D. Wright, Acting Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, announce the filing of a superseding indictment charging Yuri Sucart, 52, of Miami, FL, Juan Carlos Nuñez, 48, of Fort Lauderdale, FL, Lazaro Daniel Collazo, a/k/a “Lazer,” “Laser,” 50, of Hialeah, FL, and Paulo Berejuk, a/k/a “Pablo Berejuk,” “Paolo Berejuk,” 50, of Cutler Bay, with conspiring to distribute testosterone and human growth hormone to underage high school and professional athletes. The charges stem from a DEA investigation, which focused on the illegal distribution of testosterone by the charged defendants in Miami-Dade County, and elsewhere. In August 2014, seven defendants, including Sucart, Nuñez, and Collazo, were charged with conspiracy to distribute testosterone. Defendants Anthony Publio Bosch, Carlos Javier Acevedo, Jorge Augustine Velazquez, and Christopher Benjamin Engroba have entered guilty pleas and are pending sentencing in connection with this conspiracy.
The charges, filed in August 2014, focused on the illegal distribution of testosterone by the operators of several anti-aging clinics in Miami, Florida, recruiters for these clinics, and a black market distributor of testosterone. These anti-aging clinics were incorporated under several different corporate names: Biogenesis of America, LLC; Biokem, LLC; Revive Miami, LLC; and others by the same group of people who occasionally worked together in the time period 2008 through 2012. One of the original founders of these clinics was Anthony Bosch.
The superseding indictment charges Sucart, Collazo, Nuñez, and Berejuk with one count of conspiracy to distribute a Schedule III controlled substance, that is, the anabolic steroid testosterone, in violation of Title 21, United States Code, Section 846; and one count of conspiracy to distribute human growth hormone, in violation of Title 21, United States Code, Sections 333(e)(1) and (e)(2). Additionally, Sucart has been charged with five counts of distribution of testosterone, in violation of Title 21, United States Code, Section 841(a)(1) and Title 18, United States Code, Section 2; and Collazo has been charged with one count of distribution of human growth hormone, in violation of Title 21, United States Code, Sections 333(e)(1) and (e)(2).
If convicted, the defendants face a maximum possible statutory sentence of 10 years in prison on each count.
Mr. Ferrer thanked the DEA for their work on this investigation. This case is being prosecuted by Senior Litigation Counsel Michal P. Sullivan and Assistant U.S. Attorney Sharad A. Motiani.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Mayor of Río Grande, Puerto Rico, Pleads Guilty to Soliciting and Accepting Bribes from ContractorRead the Press Release
The former mayor of the municipality of Río Grande, Puerto Rico, pleaded guilty today to soliciting and receiving approximately $39,000 in cash bribes from a contractor who sought to be awarded three construction inspection contracts with the municipality of Río Grande.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico and Special Agent in Charge Carlos Cases of the FBI’s San Juan Division made the announcement.
According to his plea agreement, Eduard Rivera-Correa, 61, while mayor of Río Grande in early 2010, requested that a contractor make regular kickback payments in exchange for the award of three construction inspection contracts worth a total of $329,000. After the contracts were awarded and while payments were being disbursed by the municipality, the contractor delivered envelopes containing approximately $39,000 in cash to Rivera-Correa’s office and placed them in his drawer.
Rivera-Correa pleaded guilty before U.S. Magistrate Judge Marcos E. López to one count of bribery. Rivera-Correa was arrested on July 10, 2014, after being indicted by a federal grand jury. His sentencing will be scheduled at a later date.
In his plea agreement, Rivera-Correa admitted to obstructing justice by threatening the contractor who paid him bribes. On or about April 16, 2012, in a recorded conversation, Rivera-Correa threatened the contractor in an effort to intimidate him and dissuade him from cooperating with law enforcement.
This case was investigated by the FBI and is being prosecuted by Trial Attorney Charles R. Walsh of the Criminal Division’s Public Integrity Section and Criminal Chief Jose Ruíz of the District of Puerto Rico. The Puerto Rico Office of Government Ethics provided assistance in the investigation.
Former Defense Contractor Convicted in Scheme to Sell Defective Machine Gun Components to Department of DefenseRead the Press Release
Colorado Resident Howard Cahn, Who Tried to Save His Michigan Manufacturing Business by Selling Defective Machinegun Components to DoD in 2009, Convicted of Four Felonies
GRAND RAPIDS, MICHIGAN – United States Attorney Patrick A. Miles, Jr. announced today the conviction, on October 23, of Colorado resident Howard “Jack” Cahn, on four felony charges following a four-day jury trial in Kalamazoo, Michigan. The charges stem from Cahn’s conduct during 2009 when, as the owner of a manufacturing company that was under contract with the U.S. Department of Defense (DoD) to produce critical replacement parts for several machinegun weapons systems used by the U.S. Armed Forces, he tried to sell DoD parts that were defective and that did not meet contract specifications.
“Defense-procurement fraud is a serious offense,” said U.S. Attorney Miles. “When it involves misconduct that also can endanger U.S. troops in the field, it is outrageous as well. Mr. Cahn tried to save his company and make a dollar even if it meant sending U.S. troops into battle with defective weapons during the height of combat operations in Iraq and Afghanistan. He will now be held accountable.”
In 2008, Cahn purchased a machining shop in Michigan and began doing as “Aerospace Manufacturing Services (AMS),” producing components for various weapons systems under contracts with components of DoD. These contracts included ones for the production of internal components for the M-249 5.56 mm Squad Automatic Weapon (SAW) and the “Mark 19”40 mm grenade-machinegun. Both weapons systems are in wide use by all branches of the U.S. Armed Forces, and the components in question are essential to the reliable and safe functioning of those weapons. By April 2009, AMS was in serious financial trouble and Cahn was desperate to ship on the contracts so that he could receive payments from DoD. In early April, Cahn coerced employees of his to add defective M-249 “feed pawls,” which had failed dimensional testing during production and had been designated as scrap, to a shipment of good parts that was awaiting DoD acceptance. At the same time, and in an attempt to receive DoD approval to go into full production on his contract for Mark 19 “lever drives,” he coerced an employee to alter testing documents related to a sample of lever drives, that had been produced by a company in Colorado, to make it appear as though the sample had been produced by AMS. In addition, he personally prepared false certification documents claiming that the levers had been produced by AMS.
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