Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
23 October 2014
Six Charged with Participating in Luzerne County-based Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that six people were indicted by a federal grand jury in Scranton October 21, 2014 for participating in a heroin trafficking conspiracy in the Luzerne County area since February 2014.
According to United States Attorney Peter Smith, the grand jury alleges that the following individuals participated in the drug ring:
- Megan Fox, age 27, of Plymouth, PA, charged with conspiracy to distribute heroin and possession with intent to distribute heroin as an aider and abettor;
- Desmond Mercer, age 26, of Edwardsville, PA, charged with conspiracy to distribute heroin, possession with intent to distribute heroin as an aider and abettor, two counts of possession with intent to distribute heroin, unlawful possession of a firearm as a convicted felon, and carrying and possessing a firearm in connection with a drug trafficking offense;
- Shaliek Stroman, age 31, of Edwardsville, PA, charged with conspiracy to distribute heroin, and three counts of distribution/possession with intent to distribute heroin;
- Antuan Jamison, age 34 , of Irvington, New Jersey, charged with conspiracy to distribute heroin and possession with intent to distribute heroin as an aider and abettor;
- Corey Wortham, age 18, of Montgomery, Alabama, charged with conspiracy to distribute heroin and possession with intent to distribute heroin as an aider and abettor;
- Shaquan Murphy, age 27, of Newark, New Jersey, charged with conspiracy to distribute heroin and possession with intent to distribute heroin as an aider and abettor.
The Indictment also seeks to forfeit $15,887, and two vehicles seized during the investigation.
The indictments were sealed until today pending the defendants being taken into custody. Fox has been released on bail; Stroman was taken into custody yesterday and will appear in court today. The others have been detained.
The charges stem from an investigation by The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Kingston Police, Plymouth Police, Wilkes-Barre Police, Edwardsville Police, and the Luzerne County District Attorney’s Office.If convicted of the charges, Mercer faces up to life in prison and a $4.5 million fine; Stroman faces up to 80 years in prison and a $4 million fine; Fox, Jamison, Wortham, and Murphy each face up to 40 years in prison and a $2 million fine.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
****Sentencings for October 21 - October 23, 2014Read the Press Release
Felipe Baez-Vasquez, 26, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on October 23, 2014, for illegal re-entry of a previously deported alien into the United States. Baez-Vasquez was arrested in Jackson, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Martin Fernando Dominguez-Vasquez, 41, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on October 23, 2014, for illegal re-entry of a previously deported alien into the United States. Dominguez-Vasquez was arrested in Gillette, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Amy Rochelle Wendt, 42, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on October 23, 2014, for conspiracy to possess with intent to distribute, and to distribute 50 grams or more of methamphetamine. Wendt was arrested in Cheyenne, Wyoming. She received 84 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $200.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Spencer Dale Cottrell, 43, of Rock Springs, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on October 22, 2014, for making counterfeit obligations of the United States and for passing counterfeit obligations of the United States. Cottrell was arrested in Rock Springs, Wyoming. He received 15 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $200.00 special assessment and restitution in the amount of $950.00. This case was investigated by the U.S. Secret Service.
Melissa Lynne Goddard, 47, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on October 21, 2014, for conspiracy to possess with intent to distribute, and to distribute 50 grams or more of methamphetamine. Goddard was arrested in Cheyenne, Wyoming. She received 37 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Second Drug Dealer Pleads Guilty to Distributing Heroin and Oxycodone and to Illegally Possessing an Explosive DeviceRead the Press Release
Greenbelt, Maryland – Benjamin K. Bray, age 30, of Davidsonville, Maryland, pleaded guilty on October 21, 2014, to conspiracy to distribute and possess with intent to distribute heroin and oxycodone and to being a felon in possession of an explosive device.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Deputy Fire Chief Scott K. Hoglander, Acting Fire Chief for Prince George’s County Fire/EMS.
According to Bray’s plea agreement, from at least January 2011 through December 2012, Bray conspired with John Frank Jenkins and others to distribute oxycodone. Bray and his co-conspirators presented forged prescriptions for oxycodone pills to different pharmacies approximately twice a week from the spring of 2011 through the summer of 2012. Bray and his co-conspirators consumed some of the pills and sold the rest. During the conspiracy, Bray began to use and distribute heroin as a cheaper substitute for the oxycodone, selling heroin to pay for the heroin he used.In November 2012, Jenkins refused to sell oxycodone to one of his drug customers, resulting in an argument. After the argument, Jenkins built two pipe bombs, which he intended to use to blow up the drug customer’s vehicle. Bray supplied the black powder for the pipe bombs. Another drug customer owed Jenkins $50 for oxycodone that Jenkins had supplied to the customer in June 2012. On December 18, 2012, Bray and Jenkins were out of heroin and needed money to purchase heroin. As a result, Jenkins contacted the customer and attempted unsuccessfully to collect the debt. After the call ended, Bray and Jenkins carried one of the pipe bombs to the home of the customer who owed Jenkins money. Bray placed the pipe bomb on the front porch and lit the fuse. The bomb exploded, damaging the front door. The drug customer was sleeping in the bedroom adjacent to the door at the time of the explosion.
Bray and the government have agreed that if the Court accepts the plea, Bray will be sentenced to 96 months in prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for January 12, 2015, at 9:00 a.m.
John Frank Jenkins, age 30, of College Park, Maryland, was previously sentenced to 121 months in prison, followed by 14 months of home detention as part of three years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin and oxycodone and to 10 years in prison for making an explosive device and being a felon in possession of an explosive device. The sentences are to be served concurrently. Judge Grimm also ordered Jenkins to pay restitution of $475.
United States Attorney Rod J. Rosenstein praised the ATF, Prince George’s County Police Department and Prince George’s County Fire/EMS for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Leah J. Bressack, who are prosecuting the case.
San Felipe Pueblo Man Pleads Guilty to Federal Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Vincent Ortiz, 44, a member and resident of San Felipe Pueblo, pleaded guilty this morning to a federal sexual abuse charge. Under the terms of his plea agreement, Ortiz will be sentenced to 50 months in federal prison followed by a term of supervised release to be determined by the court. Ortiz will be required to register as a sex offender after he completes his prison sentence.
Ortiz was arrested in July 2014, on an indictment charging him with sexual abuse and assault with a dangerous weapon. According to court filings, on July 5, 2014, Ortiz sexually assaulted a Kewa Pueblo woman of Santo Domingo Pueblo, and assaulted a San Felipe Pueblo man in a residence located in the San Felipe Pueblo in Sandoval County, N.M.
Today Ortiz entered a guilty plea to Count 1 of the indictment, charging him with sexual abuse, and admitted sexually abusing the victim on July 5, 2014, by engaging in a sexual act with the victim who was incapable or unable to decline participation in the act. The sexual act consisted of Ortiz touching the victim’s genitals with his hand.
Ortiz has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney David Adams.
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.
Rochester Man Pleads Guilty to Bank RobberyRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Raul Abidel Martinez, 34, of Rochester, NY, pleaded guilty to bank robbery before U.S. District Court Judge Frank P. Geraci. The charge carries a maximum penalty of 20 years in prison and a fine of up to $250,000.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that on August 23, 2011, Martinez walked into the M&T Bank on Lyell Avenue in Rochester and handed the teller a note demanding money. Among other things, the note claimed that the defendant had an AK-47. The teller gave Martinez some money and a dye pack which activated as soon as the defendant left the bank causing him to flee down Lyell Ave covered in red dye. Martinez was apprehended shortly thereafter by Rochester Police officers who responded to the silent alarm activation at the bank. Rochester Police enlisted the investigative assistance of the Federal Bureau of Investigation. At the time he robbed the M&T Bank, the defendant was on federal supervised release following a 2007 conviction for being a felon in possession of a firearm.
The guilty plea is the culmination of an investigation on the part of Officers of the Rochester Police Department, under the direction of Chief Michael Ciminelli and Special Agents of the Federal Bureau of Investigation
Sentencing which is scheduled for January 21, 2015 at 3:00 p.m. before Judge Geraci.Pine Hill Man Sentenced to Federal Prison for Child Abuse ConvictionRead the Press Release
ALBUQUERQUE – Harold Martinez, 32, an enrolled member of the Navajo Nation who resides in Pine Hill, N.M., was sentenced today for his child abuse conviction. Martinez will serve a prison sentence of 16 months followed by a year of supervised release.
Martinez was arrested on Nov. 26, 2013, on a criminal complaint alleging assault charges. According to the criminal complaint, on June 11, 2013, Martinez initiated a physical confrontation with another Navajo man. After the victim got into his vehicle in an effort to get away from Martinez, Martinez rammed his own vehicle into the victim’s vehicle several times. Two young boys were in Martinez’s vehicle when he rammed it into the victim’s vehicle.
On March 11, 2014, Martinez entered a guilty plea to a child abuse charge and admitted that on June 11, 2013, he deliberately drove his vehicle into another vehicle without justification. Martinez also admitted that two unrestrained children were in the vehicle he was driving and that by ramming into another vehicle he placed the children in a situation that endangered their lives or health. The children however were not injured.
This case was investigated by the Ramah Navajo Police Department and was prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
Philadelphia Man Sentenced to Prison for Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 32-year-old Philadelphia man was sentenced to 27 months in prison yesterday by U.S. District Court Judge Malachy E. Mannion for participating in a conspiracy that distributed heroin during November 2013 to January 2014.
According to United States Attorney Peter Smith, the defendant, Luis Morales, previously admitted that he conspired with others, including Eudy Gonzalez, then an inmate at SCI Waymart, to distribute and possess with intent to distribute heroin during a three-month time period.
Morales was indicted by a federal grand jury on March 11, 2014, as a result of an investigation by special agents and task force officers of the Federal Bureau of Investigation and Scranton Police.
Morales’ co-defendants, Linda Reyes and Eudy Gonzalez, previously pleaded guilty and both were sentenced to prison by Judge Mannion for their roles in the drug conspiracy.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Philadelphia Man Sentenced to 57 Months in Prison for Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 35-year-old Philadelphia man was sentenced to 57 months in prison yesterday by U.S. District Court Judge Malachy E. Mannion for his role in a conspiracy to distribute heroin in the Hazleton area of Pennsylvania.
According to United States Attorney Peter Smith, the defendant, Edwin Laureano-Suarez, previously admitted to conspiring with others to distribute heroin between May 2014 and June 18, 2014.
Laureano-Suarez was charged in a criminal Information filed on August 12, 2014, as a result of an investigation by the Federal Bureau of Investigation and Scranton Police.
Judge Mannion also ordered the defendant to serve three years of supervised release following his prison sentence, and pay a special assessment of $100.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Peruvian Man Sentenced to 17 1/2 Years in Prison for Sexually Exploiting a ChildRead the Press Release
A Peruvian man was sentenced to more than 17 years in prison for sexually exploiting a child, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland office.
Edwin Franco Rolffo-Zavala, 24, of Novato, California, was found guilty earlier this year of sexual exploitation of a child, transporting visual depictions of minors engaged in sexually explicit conduct and travel with intent to engage in illicit sexual conduct.
Rolff0-Zavala is a Peruvian national who will face deportation upon completion of his prison sentence.
From on or about May 13, 2013, through on or about January 13, 2014, Rolffo-Zavala, used, persuaded, induced, enticed and coerced a minor, that is, a 13-year-old girl to engage in sexually explicit conduct, for the purpose of transmitting a live visual depiction of such conduct, and knowing and having reason to know that such visual depiction would be transmitted, using any means or facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce, according to court documents.
From on or about January 1, 2011, through on or about January 13, 2014, Rolffo-Zavala knowingly transported, using any means of interstate and foreign commerce and in and affecting interstate and foreign commerce, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct, according to court documents.
On or about January 16, 2014, Rolffo-Zavala knowingly traveled in interstate commerce, from the State of California to the State of Ohio, for the purpose of engaging in illicit sexual conduct with a 14-year-old girl, according to court documents.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Akron Office of the Federal Bureau of Investigation and the Medina City Police Department.
Palmyra Man Arrested; Charged with Distributing Child PornographyRead the Press Release
ROCHESTER, N.Y. U.S. Attorney William J. Hochul, Jr. announced today that Noah R. Scribner, 22, of Palmyra, NY, was arrested and charged by criminal complaint with distribution of child pornography. The charge carries a mandatory minimum sentence of five years in prison, a maximum of 20 years, and a fine of up to $250,000.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the complaint, the New York State Police and Federal Bureau of Investigation conducted an online child pornography investigation in December 2013. During that case, they learned that child pornography had been uploaded to a Google cloud drive account. Investigators linked that activity to the defendant, and traced his physical location to his residence in Palmyra where a search warrant was executed and numerous digital items were seized. Sexually explicit images and movies were found on several of these items, including a laptop computer and iPod.
The defendant made an initial appearance today before U.S. Magistrate Marian W. Payson. Scribner is due back in court on December 4, 2014 at 9:00 a.m. before Magistrate Payson.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The criminal complaint is the culmination of an investigation by the New York State Police, under the direction of Major Scott crosier and the Federal Bureau of Investigation.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until proven guilty in a court of law.Pair Indicted for $2.1 Million Mortgage Fraud Involving Westlake HomeRead the Press Release
A six-count indictment was filed in federal court charging a pair from Northeast Ohio of engaging in a $2.1 million mortgage-fraud scheme involving a Westlake home, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Derryl L. Tanner, 47, of Euclid, and Julie A. Becker, 39, of Cleveland, engaged in a conspiracy in 2006 to defraud several lending institutions related to transactions involving a home at 1517 Fitzroy Street.
Tanner learned that the builder of the home on Fitzroy was experiencing financial difficulties and was willing to sell the home for the cost of construction. Tanner enlisted Becker to serve as a straw buyer. He told her that if she allowed the property to be purchased in her name, she would not have to put any money down and would receive cash back at the time of closing for allowing her name to be used, according to the indictment.
Becker signed promissory notes that she had no intention of repaying. Funds were temporarily transferred into an account in her name so she could qualify for a mortgage, a home equity line and make a down payment. She also, with Tanner’s knowledge, provided false income tax returns for the same purposes, according to the indictment.
When Ohio Savings approved a $250,000 home equity line of credit application on the Fitzroy property, Tanner and Becker quickly spent the money, including transferring large sums of money into their personal bank accounts, according to the indictment.
Tanner moved into the Fitzroy property but was not able to make the monthly mortgage payment. The property went into foreclosure, resulting in losses of approximately $670,000 to First Place, $250,000 to Ohio Savings/Amtrust and $350,000 to National City/PNC, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Mark S. Bennett following an investigation by the U.S. Postal Service Office of Inspector General and Westlake Police Department.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Owners of Safari Company Indicted for Illegal Rhino HuntsRead the Press Release
The owners of Out of Africa Adventurous Safaris were charged with conspiracy to sell illegal rhinoceros hunts in South Africa in order to defraud American hunters, money laundering and secretly trafficking in rhino horns, announced Sam Hirsch Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division; George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama; and Dan Ashe, Director of the U.S. Fish & Wildlife Service. The indictment was unsealed today in Montgomery, Alabama following the federal indictment.
The indictment charges Dawie Groenewald, 46, and his brother, Janneman Groenewald, 44, both South African nationals, and their company Valinor Trading CC (d/b/a Out of Africa Adventurous Safaris) with conspiracy, Lacey Act violations, mail fraud, money laundering and structuring bank deposits to avoid reporting requirements. The Lacey Act, the nation’s oldest criminal statute addressing illegal poaching and wildlife trafficking, makes it a crime to sell animal hunts conducted in violation of state, federal, tribal and foreign law.
According to the 18-count indictment, from 2005 to 2010, the Groenewald brothers traveled throughout the United States to attend hunting conventions and gun shows where they sold outfitting services and accommodations to American hunters to be conducted at their ranch in Mussina, South Africa. During the time period covered by the indictment, Janneman Groenewald lived in Autauga County, Alabama, where Out of Africa maintained bank accounts and is accused of money laundering and structuring deposits to avoid federal reporting requirements. Hunters paid between $3,500 and $15,000 for the illegal rhino hunts.
The defendants are charged with selling illegal rhino hunts by misleading American hunters. The hunters were told the lie that a particular rhino had to be killed because it was a “problem rhino.” Therefore, while no trophy could be legally exported, the hunters could nonetheless shoot the rhino, pose for a picture with the dead animal, and make record book entries, all at a reduced price. Meanwhile, the defendants are alleged to have failed to obtain necessary permits required by South Africa and cut the horns off some of the rhinos with chainsaws and knives.
The indictment alleges that the defendants then sold the rhino horn on the black market. Eleven illegal hunts are detailed in the papers filed in federal court, including one in which the rhino had to be shot and killed after being repeatedly wounded by a bow, and another in which Dawie Groenewald used a chainsaw to remove the horn from a sedated rhino that had been hunted with a tranquilizer gun. The American hunters have not been charged.
“We are literally fighting for the survival of a species today. In that fight, we will do all we can to prosecute those who traffic in rhino horns and sell rhino hunts to Americans in violation of foreign law,” said Sam Hirsch, Acting Assistant Attorney General for the Environment and Natural Resources Division. “This case should send a warning shot to outfitters and hunters that the sale of illegal hunts in the U.S. will be vigorously prosecuted regardless of where the hunt takes place.”
“These defendants tricked, lied and defrauded American citizens in order to profit from these illegal rhinoceros hunts,” stated U.S. Attorney Beck. “Not only did they break South African laws, but they laundered their ill-gotten gains through our banks here in Alabama. We will not allow United States’ citizens to be used as a tool to destroy a species that is virtually harmless to people or other animals.”
“The fact that defendants used American hunters to execute this scheme is appalling - but not as appalling as the brutal tactics they employed to kill eleven critically endangered wild rhinos,” said FWS Director Ashe. “South Africa has worked extraordinarily hard to protect its wild rhino population, using trophy hunts as a key management tool. The illegal ‘hunts’ perpetrated by these criminals undermine that work and the reputation of responsible hunters everywhere.”
Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. Adult rhinoceros have no known natural predators. All species of rhinoceros are protected under United States and international law. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets. Nevertheless, the demand for rhinoceros horn and black market prices have skyrocketed in recent years due to the value that some cultures have placed on ornamental carvings, good luck charms or alleged medicinal purposes, leading to a decimation of the global rhinoceros population. Like hair or finger nails, rhino horn is actually composed of keratin and has no proven medical efficacy. As a result, rhino populations have declined by more than 90 percent since 1970. South Africa, for example, has witnessed a rapid escalation in poaching of live animals, rising from 13 in 2007 to a record 1004 in 2013. Illegally killed rhinos like the ones charged in this prosecution are not included in the published statistics of poached animals.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The investigation of Out of Africa is part of Operation Crash (named for the term “crash” which describes a herd of rhinoceros), an ongoing nation-wide effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns led by the Special Investigations Unit of the Fish and Wildlife Service Office of Law Enforcement in coordination with the U.S. Department of Justice. Thus far there have been 26 arrests and 18 convictions with prison terms as high as 70 months. (See attached Crash Fact Sheet). Throughout the course of the investigation on the current charges, U.S. authorities received substantial cooperation from South Africa’s National Prosecuting Authority and a specialized endangered species unit within the organized crime unit of the South African Police Service. That unit is known as the Hawks. Additional assistance has been provided in this case by the Bureau of Alcohol, Tobacco and Firearms, in Montgomery, Alabama and the Autauga County, Alabama Sheriff’s Office. The Out of Africa case is being prosecuted in the Middle District of Alabama by Assistant U.S. Attorney Brandon K. Essig and by Richard A. Udell, Senior Litigation Counsel with the Environmental Crimes Section of the U.S. Department of Justice in Washington, D.C. The Out of Africa investigation is continuing.
The Criminal Division’s Office of International Affairs provided assistance.
Rhino Indictment
Opeartion Crash Summary
Owners of Safari Company Indicted for Illegal Rhino HuntsRead the Press Release
Out of Africa Charged with Wildlife Crimes, Fraud and Money LaunderingMontgomery, Alabama - The owners of Out of Africa Adventurous Safaris were charged with conspiracy to sell illegal rhinoceros hunts in South Africa in order to defraud American hunters, money laundering and secretly trafficking in rhino horns, announced Sam Hirsch Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division; George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama; and Dan Ashe, Director of the U.S. Fish & Wildlife Service. The indictment was unsealed today in Montgomery, Alabama following the federal indictment.
The indictment charges Dawie Groenewald, 46, and his brother, Janneman Groenewald, 44, both South African nationals, and their company Valinor Trading CC (d/b/a Out of Africa Adventurous Safaris) with conspiracy, Lacey Act violations, mail fraud, money laundering and structuring bank deposits to avoid reporting requirements. The Lacey Act, the nation’s oldest criminal statute addressing illegal poaching and wildlife trafficking, makes it a crime to sell animal hunts conducted in violation of state, federal, tribal and foreign law.
According to the 18-count indictment, from 2005 to 2010, the Groenewald brothers traveled throughout the United States to attend hunting conventions and gun shows where they sold outfitting services and accommodations to American hunters to be conducted at their ranch in Mussina, South Africa. During the time period covered by the indictment, Janneman Groenewald lived in Autauga County, Alabama, where Out of Africa maintained bank accounts and is accused of money laundering and structuring deposits to avoid federal reporting requirements. Hunters paid between $3,500 and $15,000 for the illegal rhino hunts.
The defendants are charged with selling illegal rhino hunts by misleading American hunters. The hunters were told the lie that a particular rhino had to be killed because it was a “problem rhino.” Therefore, while no trophy could be legally exported, the hunters could nonetheless shoot the rhino, pose for a picture with the dead animal, and make record book entries, all at a reduced price. Meanwhile, the defendants are alleged to have failed to obtain necessary permits required by South Africa and cut the horns off some of the rhinos with chainsaws and knives.
The indictment alleges that the defendants then sold the rhino horn on the black market. Eleven illegal hunts are detailed in the papers filed in federal court, including one in which the rhino had to be shot and killed after being repeatedly wounded by a bow, and another in which Dawie Groenewald used a chainsaw to remove the horn from a sedated rhino that had been hunted with a tranquilizer gun. The American hunters have not been charged.
“We are literally fighting for the survival of a species today. In that fight, we will do all we can to prosecute those who traffic in rhino horns and sell rhino hunts to Americans in violation of foreign law,” said Sam Hirsch, Acting Assistant Attorney General for the Environment and Natural Resources Division. “This case should send a warning shot to outfitters and hunters that the sale of illegal hunts in the U.S. will be vigorously prosecuted regardless of where the hunt takes place.”
“These defendants tricked, lied and defrauded American citizens in order to profit from these illegal rhinoceros hunts,” stated U.S. Attorney Beck. “Not only did they break South African laws, but they laundered their ill-gotten gains through our banks here in Alabama. We will not allow United States’ citizens to be used as a tool to destroy a species that is virtually harmless to people or other animals.”
“The fact that defendants used American hunters to execute this scheme is appalling - but not as appalling as the brutal tactics they employed to kill eleven critically endangered wild rhinos,” said FWS Director Ashe. “South Africa has worked extraordinarily hard to protect its wild rhino population, using trophy hunts as a key management tool. The illegal ‘hunts’ perpetrated by these criminals undermine that work and the reputation of responsible hunters everywhere.”
Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. Adult rhinoceros have no known natural predators. All species of rhinoceros are protected under United States and international law. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets. Nevertheless, the demand for rhinoceros horn and black market prices have skyrocketed in recent years due to the value that some cultures have placed on ornamental carvings, good luck charms or alleged medicinal purposes, leading to a decimation of the global rhinoceros population. Like hair or finger nails, rhino horn is actually composed of keratin and has no proven medical efficacy. As a result, rhino populations have declined by more than 90 percent since 1970. South Africa, for example, has witnessed a rapid escalation in poaching of live animals, rising from 13 in 2007 to a record 1004 in 2013. Illegally killed rhinos like the ones charged in this prosecution are not included in the published statistics of poached animals.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The investigation of Out of Africa is part of Operation Crash (named for the term “crash” which describes a herd of rhinoceros), an ongoing nation-wide effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns led by the Special Investigations Unit of the Fish and Wildlife Service Office of Law Enforcement in coordination with the U.S. Department of Justice. Thus far there have been 26 arrests and 18 convictions with prison terms as high as 70 months. (See attached Crash Fact Sheet). Throughout the course of the investigation on the current charges, U.S. authorities received substantial cooperation from South Africa’s National Prosecuting Authority and a specialized endangered species unit within the organized crime unit of the South African Police Service. That unit is known as the Hawks. Additional assistance has been provided in this case by the Bureau of Alcohol, Tobacco and Firearms, in Montgomery, Alabama and the Autauga County, Alabama Sheriff’s Office. The Out of Africa case is being prosecuted in the Middle District of Alabama by Assistant U.S. Attorney Brandon K. Essig and by Richard A. Udell, Senior Litigation Counsel with the Environmental Crimes Section of the U.S. Department of Justice in Washington, D.C. The Out of Africa investigation is continuing.
The Criminal Division’s Office of International Affairs provided assistance.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Owners of Cadillac Ranch Restaurants and Associated Accountant Sentenced for Tax ChargesRead the Press Release
A certified public accountant (CPA) from Dayton, Ohio, was sentenced today to serve 12 months and one day in prison to be followed by one year of supervised release by U.S. District Judge Edmund A. Sargus Jr. in Columbus, Ohio, on tax charges, announced the Justice Department and Internal Revenue Service (IRS).
Larry E. Couchot, 59, who is the president and part owner of a CPA firm in Centerville, Ohio, was also ordered to pay $40,711 in restitution and a $10,000 fine, and to serve four months of community confinement followed by two months of home confinement following his prison term. Couchot’s sentencing today follows the sentencing of three of his tax clients, Jon B. Field, of Dublin, Ohio, Paul A. Butler, also of Dublin, and Eric P. Schilder, of Marion, Ohio, who were all associated with Cadillac Ranch restaurants.
On June 5, 2014, Couchot pleaded guilty to two tax fraud charges and admitted that he assisted in the preparation of false individual income tax returns for his clients Jon B. Field, Butler and Schilder, which caused a tax loss of over $191,000 to the IRS. Jon B. Field, along with his associates Butler and Schilder and his brother Joel Field, owned and operated the Cadillac Ranch restaurant enterprise.
Joel A. Field also pleaded guilty to tax charges earlier this year, but his tax charges were unrelated to Couchot. His sentencing is scheduled to take place in November.
According to the documents filed with the court, during 2006 through 2010, Couchot prepared false federal income tax returns for his clients Jon B. Field, Butler and Schilder. According to the court filing, the three clients used a substantial amount of company funds for personal purposes, which included payments for their personal cars, car insurance, country club dues and their individual income tax liabilities. In addition, the individuals made substantial charges for personal purposes on credit cards that were paid for with company funds. Couchot also admitted that he believed that Jon B. Field used company funds to pay for personal expenditures including lawn services, repairs and maintenance to personal residences, granite counter tops, TV and audio systems, and other expenditures that were personal in nature.
Couchot admitted that he prepared false tax returns for these individuals which failed to report all of the above personal expenditures as income on the individuals’ income tax returns. Couchot pleaded guilty to aiding and assisting in the preparation of a false income tax return for the year 2009 for Jon B. Field, and to preparing a false income tax return for Schilder for the year 2007 which reported only $68,000 of income despite the fact that the business records of the company showed that Shilder earned over $129,000 in that year. Couchot admitted that after the false return was filed with the IRS on behalf of Schilder, he created a false summary which he retained in his records to support the false income of $68,000. The clients were sentenced for their crimes by Judge Sargus earlier this year, and Jon B. Field was sentenced to serve time in jail for his conduct.
These cases were investigated by the IRS-Criminal Investigation and are being prosecuted by Trial Attorney Richard M. Rolwing and Senior Litigation Counsel John E. Sullivan of the Justice Department’s Tax Division. Additional information about the Tax Division and its enforcement efforts may be found on the division website. Additional information about tax fraud schemes to watch out for may be found on the IRS-Criminal Investigation website.
Owner of Cuyahoga Falls Business Accused of Stealing $1.5 Million from Healthcare PlansRead the Press Release
A seven-count indictment was filed today accusing a former Copley resident of stealing more than $1.5 million from healthcare plans he administered and using the money to pay for bonuses, operating expenses, luxury car leases and a country club membership, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Robert Hartenstein, 61, was indicted of seven counts of theft from a health benefit program.
“This defendant was entrusted with millions of dollars to pay for hospital stays and medical tests, but instead betrayed that trust and used his clients’ money for fancy cars, lavish entertainment and his own business operations,” Dettelbach said.
Hartenstein in 1994 started Professional Benefits Association (PBA), a company that was a third-party administrator of healthcare plan benefits. It was located in Cuyahoga Falls and had a branch office in Austintown. Hartenstein was the majority owner, chief executive officer and chairman and secretary of its board of directors.
PBA had several clients that were companies which sponsored self-funded health care benefit plans for their employees. These companies hired PBA and paid it a fee to administer their benefit plans. Hartenstein knew PBA was required by law and by contract to establish individual segregated bank accounts for each of the client companies to hold, in trust, the funds the companies sent to PBA to pay claims from medical service providers, according to the indictment.
From at least 2000 through 2010, Hartenstein caused, authorized and directed expenditures from PBA’s operating account. Such expenditures included salaries and periodic bonuses to Hartenstein and PBA employees, payments to lease luxury cars and a country club membership Hartenstein used and an entertainment account Hartenstein used, according to the indictment.
A PBA employee identified in the indictment only as L.W. began regularly depositing plan funds from the companies into the PBA operating account instead of depositing those funds into the companies’ respective segregated trust accounts, as required by law and PBA’s contracts with the companies. This improper comingling of funds was done with Hartenstein’s knowledge, according to the indictment.
Hartenstein learned in 2008 or earlier that PBA did not have sufficient funds to pay the medical service provide claims for which the companies had already provided funds in trust to PBA. When he learned of the shortfalls, Hartenstein directed PBA employees to withhold payments from service providers for increasing periods of time. Employees made up excuses for the delays at Hartenstein’s direction, according to the indictment.
Hartenstein did not inform the companies of the shortfalls. Instead, he directed PBA employees to divert funds to pay for other outstanding claims. He misled PBA clients about the status of payments and why claims had not been paid. At Hartenstein’s direction, PBA employees made up false excuses for lack of payment to companies or falsely claimed payment had been made, according to the indictment.
According to the indictment, the health benefit plans that Hartenstein defrauded were for the following organizations: Guyan International, Inc. dba the Permco ($501,380); Pritchard Mining Company, Inc. ($435,837); Hocking Athens Perry Community Action ($384,574); O’Bleness Memorial Hospital ($91,877); Precision Gear ($54,612); Lordstown Schools ($32,835) and the Joseph Badger Local Schools ($29,357).
This case is being prosecuted by Assistant U.S. Attorney Rebecca Lutzko following an investigation by U.S. Department of Labor, Office of Inspector General and Employee Benefits Security Administration.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Owner of Harrisburg Healthcare Services Firm Charged with Additional OffensesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury returned a superseding indictment yesterday charging Rose Umana, 47, Mechanicsburg, the owner and operator of Vision Healthcare Services, Inc., with additional health care fraud and money laundering offenses.
According to United States Attorney Peter Smith, the superceding indictment charges Umana with health care fraud and money laundering in connection with operation of Vision Healthcare, 4113 Linglestown Road, Harrisburg. The new charges are in addition to 34 offenses brought in an indictment returned May 7.
The 36-count superseding indictment alleges that Umana created false identification documents and fictitious occupational licenses for workers not licensed at the level represented on the license and then submitted bills to Medicaid for medical services purportedly provided by the workers, billed Medicaid for services provided by someone other than the person claimed to be the provider, and billed Medicaid for services not provided or provided by someone not qualified to provide the service.
In addition, the grand jury charged that Umana laundered and concealed at least $291,000 in proceeds derived from this criminal activity. The superseding indictment alleges that Umana conducted at least 32 monetary transactions totaling $673,733 with proceeds derived from the fraud in amounts greater than $10,000. The superseding indictment also alleges that approximately $307,000 in three bank accounts held by Umana are forfeitable to the government.
“Medicaid Home Care companies that steal our health benefits, and lie about their level of competence, drain programs of money and put patients at risk ” said Nick DiGiulio, Special Agent in Charge for the Inspector General’s Office of the United States Department of Health and Human Services in Philadelphia. “We will continue to work energetically with our partners to investigate those that are accused of robbing health care dollars and mistreating Medicaid recipients.”
Health care fraud is punishable by up to 20 years in prison, false statements relating to health care matters carries a maximum term of imprisonment of five years, money laundering is punishable by up to 20 years’ imprisonment, conducting monetary transactions with criminal proceeds in excess of $10,000 is punishable by up to 10 years’ imprisonment, and identity theft carries a two-year mandatory minimum sentence that must be served consecutively to any other sentence.
This case is part of a coordinated federal and state investigation involving the Office of Inspector General, Health and Human Services; Internal Revenue Service Criminal Investigations; and the Medicaid Fraud Control Section of the Pennsylvania Office of Attorney General. Special Assistant U.S. Attorney Heather Albright of the State Attorney General’s Office and Assistant U.S. Attorney Christy H. Fawcett are prosecuting the case.
October Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 32 indictments charging 38 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Abraham Amador-Mendoza, age 41, is charged with illegal reentry into the United States on or about September 17, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Javier Antonino-Miguel, age 31, is charged with illegal reentry into the United States on or about September 23, 2014, following deportation as a felon. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* David S. Baird, age 33, is charged in a four-count Indictment. Count I of the Indictment alleges the defendant used or carried a firearm during and in relation to, or possessed a firearm in furtherance of, the drug trafficking offense alleged in Counts II and III. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to Life to be served consecutive to any other sentence imposed, a $250,000 fine, a 5 year term of supervised release and a $100 special assessment for each count. Count II of the Indictment charges Baird with conspiracy to distribute a mixture containing methamphetamine on or about July 31, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment.
Count III of the Indictment charges the defendant with possession with intent to distribute a mixture containing methamphetamine on or about July 31, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count IV of the Indictment charges Baird with felon in possession of a firearm on or about July 31, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Marcus Chiles, age 34, is charged in a four-count Indictment. Count I of the Indictment charges the defendant with conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base beginning on or about January 1, 2013, and continuing to on or about May 30, 2014. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release and a $100 special assessment. Counts II, III, and IV of the Indictment charge Chiles with possession with intent to distribute a mixture containing cocaine base on or about April 3, 2014, May 30, 2014, and July 8, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count.
* Carlos Humberto Collazos-Vallecilla, age 40, of South Valley, California, is charged with possession with intent to distribute 1 kilogram or more of heroin on or about October 6, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release and a $100 special assessment.
* Daniel J. Converse, age 50, is charged with interstate transportation of a stolen motor vehicle from the State of Nebraska to the State of Illinois from on or about April 12, 2014, through on or about October 15, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jose Corona-Rea, age 25, of Broken Bow, Nebraska, is charged with illegal reentry into the United States on or about September 1, 2014, following deportation as a felon. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Nathaniel J. Cullum, age 34, is charged with felon in possession of a firearm on or about June 19, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Rodolfo Esquivel, age 30; Alejandro Garcia-Roa, age 52; Agueda Arroyo, age 34; Ernesto Arroyo, age 60, are charged with conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture of methamphetamine beginning on or about August 1, 2014, and continuing to on or about October 15, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in Count I of the indictment, including but not limited to a total of $82,635.00 in United States currency seized on October 15, 2014, should be forfeited to the United States.
* Froylan Chan, age 32; Angel Gabino-Gonzalez, age 24; Quirino Gabino-Gonzalez, age 23; and Victor Lorenzo-Gallardo, age 25; all of Omaha, are charged in a two-count Indictment. Count I of the Indictment charges the defendants with conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture of methamphetamine; 500 grams or more of a mixture of cocaine; and 28 grams or more of a mixture of cocaine base beginning as early as June 10, 2014, and continuing to on or about October 7, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Froylan Chan, Angel Gabino-Gonzalez and Quirino Gabino-Gonzalez with possession with intent to distribute 500 grams or more of a mixture of methamphetamine; 500 grams or more of a mixture of cocaine; and 28 grams or more of a mixture of cocaine base on or about October 7, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in Counts I and II of the indictment, including but not limited to $7,642.00 in United States currency seized on October 7, 2014, should be forfeited to the United States.
* Eduardo Garcia-Valdez, age 32, of Omaha, is charged with illegal reentry into the United States on or about October 6, 2014, following deportation as a felon. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Daniel Goynes, age 22, is charged in a four-count Indictment. Counts I and II of the Indictment charge the defendant with possession with intent to distribute 28 grams of a mixture of cocaine base on or about June 28, 2014, and on or about June 30, 2014. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release and a $100 special assessment for each count. Count III of the Indictment alleges the defendant used or carried a firearm during and in relation to, or possessed a firearm in furtherance of, the drug trafficking offense alleged in Count IV. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to Life to be served consecutive to any other sentence imposed, a $250,000 fine, a 5 year term of supervised release and a $100 special assessment. Count IV of the Indictment charges Goynes with possession with intent to distribute a mixture of cocaine base on or about July 11, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Deandrae Johnson, age 39, is charged in a four-count Indictment. Count I of the Indictment charges the defendant with possession with intent to distribute a mixture containing cocaine base on or about May 16, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. Counts II and III of the Indictment charge Johnson with possession with intent to distribute 28 grams or more of a mixture containing crack cocaine on or about May 19, 2014 and on or about May 22, 2014. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment for each count. Count IV of the Indictment charges the defendant with felon in possession of a firearm on or about August 18, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Patrick Keough, of Wood River, Nebraska, is charged in a three-count Indictment. Counts I and II charge Keough with transporting hazardous waste from Minden, Nebraska to a field near Crete, Nebrask, to a facility which did not have a permit issued to it by the United States Environmental Protection Agency or the Nebraska Department of Environmental Quality, to treat, store or dispose of hazardous waste. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count. Count III of the Indictment charges the defendant with storing hazardous waste without a permit. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Timothy James Kirsch, age 31, of Omaha, is charged with failure to register as a sex offender in the State of Nebraska from on and before May 29, 2014, and continuing through July 2, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a fine of $250,000, supervised release for life, and a $100 special assessment.
* William D. Knutson, age 55, of Omaha, is charged with theft of government money from the Social Security Administration. The defendant converted to his own use retirement benefit payments to which he knew he was not entitled, having a value of approximately $193,298.00. The maximum possible penalty if convicted is 10 years imprisonment, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment.
* Veronica Lorenzo Ruiz, is charged in a four-count Indictment. Count I of the Indictment alleges that on or about June 28, 2013, the defendant used a Nebraska ID Card and a social security card knowing said documents were not issued lawfully for her use. The maximum possible penalty if convicted is 5 years imprisonment, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment. Count II charges that on or about June 28, 2013, Lorenzo Ruiz misused a Social Security Card knowing that said document was not issued lawfully for her use. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count III of the Indictment charges the defendant with using a means of identification of another person during and in relation to a felony violation on or about June 28, 2013. The maximum possible penalty if convicted is mandatory 2 year imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count IV of the Indictment alleges Lorenzo Ruiz falsely claimed United States Citizenship on or about June 28, 2013. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Manuel Martinez-Bautista, age 37, of Grand Island, Nebraska, is charged with illegal reentry into the United States on or about September 26, 2014, following deportation as an aggravated felon. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Everardo Moline-Cisneros, age 23, is charged with illegal reentry into the United States on or about September 27, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Miguel Alberto Monzon, age 42, of Norfolk, Nebraska is charged in a two-count Indictment. Count I of the Indictment charges the defendant with possession with intent to distribute 50 grams or more of a mixture containing methamphetamine on or about September 26, 2014. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Monzon with possession with intent to distribute a mixture containing heroin on or about September 26, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $2,000,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Alex Morales-Molina, age 27, of Omaha, is charged with illegal reentry into the United States on or about October 7, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Frank Oliver, age 30, is charged with felon in possession of a firearm on or about October 24, 2013. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Kenneth Charles Poston, III, age 37, of Lincoln, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with distribution of child pornography on or about February 10, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment. Count II of the Indictment charges Poston possession of child pornography on or about August 29, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment. The indictment also alleges property used or intended to be used as part of this violation should be forfeited to the United States.
* Juan Rodriguez-Rivas is charged with illegal reentry into the United States on or about September 15, 2014, following deportation as a felon. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Alfredo Rojas-Martinez, age 47, is charged with illegal reentry into the United States on or about September 29, 2014, following deportation as a felon. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Hugo Salgado-Gonzalez, age 42, of Omaha, is charged with illegal reentry into the United States on or about September 18, 2014, following deportation. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Gilberto Salinas-Martinez, of Omaha, is charged in a three-count Indictment. Count I of the Indictment alleges that on or about Septemer 4, 2012, the defendant falsely misused a Social Security Card knowing that said document was not issued lawfully for his use. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment alleges that on or about September 4, 2012, Salinas-Martinez used a State of Oklahoma non-driver’s License No. and a social security card knowing said documents were not issued lawfully for his use. The maximum possible penalty if convicted is 5 years imprisonment, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment. Count III charges that on or about June 28, 2013, Lorenzo Ruiz misused a Social Security Card knowing that said document was not issued lawfully for his use. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment alleges the defendant falsely claimed United States Citizenship on or about September 4, 2012. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Leland Brett Saul, age 50, of Omaha, is charged with failure to register as a sex offender in the State of Nebraska from on and before September 26, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a fine of $250,000, supervised release for life, and a $100 special assessment.
* Michael Settles, age 27, is charged with possession of a short shotgun not registered to him in the National Firearms Registration and Transfer Record. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Christopher Shea, age 33, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine beginning on or about June 1, 2014, and continuing to on or about October 9, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Shea with distribution of methamphetamine on or about September 12, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count III of the indictment charges the defendant with possession with intent to distribute 50 grams of more of methamphetamine on or about October 9, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Derel Smith, age 27, is charged in a three-count Indictment. Counts I thru III of the Indictment charge the defendant with possession with intent to distribute a mixture of cocaine base on or about June 13, 2014, on or about June 26, 2014, and on or about July 8, 2014 The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count.
* Robert R. Stoppel, age 55, of Lincoln, is charged with theft of government money from the Social Security Administration. The defendant converted to his own use retirement benefit payments to which he knew he was not entitled, having a value of approximately $19,533.00. The maximum possible penalty if convicted is 10 years imprisonment, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment.North Royalton Man Indicted for Home Loan-Modification SchemeRead the Press Release
A North Royalton man was indicted today for operating a loan-modification scheme in which he defrauded more than 90 homeowners struggling to make their mortgage payments out of at least $250,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Robert Walker, age 43, was indicted on 21 counts of mail fraud and two counts of wire fraud.
Walker is accused of making multiple false representations. He convinced homeowners on the verge of foreclosure to pay himself and his company an up-front fee of at least $1,995 but then did little or no work to get a loan modification for customers, according to the indictment.
The indictment alleges that Walker promised customers that, if not modification was obtained, 80 percnet of the fee would be reimbursed. But Walker never intended to reimburse those fees and when he failed to obtain a loan modification, he regularly refused the promised reimbursement.
“This defendant preyed upon people struggling to pay the bills and instead of helping them, he ripped them off,” Dettelbach said.
“While these people were facing hard times with the very real possibility of losing their homes, this predator took full advantage of their vulnerable position and lined his pockets with money,” Anthony said.
According to the indictment filed in federal court:
Walker incorporated and owned The Modification Group, or TMG, where he supervised and directed the employees. TMG did business under various names, including The Modification Group 4, US Modification Group and Loan Modification Group, among others. It had offices at various times in Broadview Heights, Middleburg Heights, Bedford, Parma Heights, Ravenna and Cleveland.
TMG solicited people who were struggling to pay their home mortgages or that were pending foreclosure and offered to help improve their financial situation and avoid foreclosure by interceding on their behalf with the lending institution and obtaining a loan modification. TMG advertised itself – using direct mailings, telephone calls, a website and internet and radio advertisements – as “specializ(ing) in loan modifications, debt settlements, credit repair, and financial planning services” and having “experienced negotiators that will secure your home with the lowest fixed rate available.” TMG claimed it “will eliminate or reposition all late payments back into your loan, bringing the account current, while also lowering your interest rate or payment, making it easier for you to afford.”
From 2009 through 2011, Walker devised a scheme to defraud by making representations that he knew TMG could not keep and had no intention of keeping, including: “”Are You In A Loan You Can’t Afford? We Will Modify It. Guaranteed.” Or “What [TMG] Can Do To Help: Lower interest rates (2-5.5% fixed) giving you a reduction in monthly payments; eliminate or shorten 2nd Lien, and/or lowering overall principle balance; Position yourself out of an interested only or adjustable rate mortgage and into a fixed 30 or 40 year payment.”
Walker, through TMG, required consumers to pay $1,995 or 1 percent of the mortgage balance, whichever was greater, up front, before TMG worked on obtaining a loan modification.
Walker directed his employees at TMG to solicit and accept clients for whom he knew TMG would not be able to obtain loan modifications on terms that that customers could realistically afford. Through TMG, he required customers to enter into written service agreements that were substantially one-sided, in favor of TMG. He also directed employees to tell potential customers that TMG would refund 80 percent of the fee paid if TMG failed to obtain a loan modification, when Walker had no intention of refunding the fee.
Walker, through TMG, prohibited customers from contacting their lending institution and directed customers to send any and all correspondence from their lenders to TMG.TMG often failed to obtain any loan modification for the customer. In some cases, TMG never contacted its customer’s lending institution to discuss a modification even though the customer had paid substantial monies to Walker and TMG to do so.
Walker and his employees at TMG often created illegitimate reasons that they claimed voided TMG’s contract to avoid refunding customer’s fees. For example, TMG often told customers that they had not provided requested documents quickly enough, and terminated their contracts without a refund.
Walker, through TMG, told customers who attempted to cancel their contracts that doing so was a breach that voided their right to a refund. He often refused to issue a refund for customers for whom TMG had failed to obtain a loan modification unless the customer filed a complaint with a consumer protection agency.Defrauded customers include residents in Lakewood, Cleveland, Eastlake, Streetsboro and North Ridgeville, as well as North Carolina, Virginia, Connecticut, Indiana and elsewhere, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Rebecca Lutzko following an investigation by the Federal Bureau of Investigation and the Ohio Attorney General’s Office, Consumer Protection Section.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Nampa Woman Arrested on Charge of Use of Interstate Commerce Facilities in the Commission of Murder-for-HireRead the Press Release
Boise – Monique Christine Martinez, 32, of Nampa, Idaho, made an initial appearance this morning in Boise on a complaint charging her with using interstate commerce facilities in the commission of murder-for-hire. United States Magistrate Judge Ronald E. Bush set a preliminary hearing and detention hearing for October 27, 2014.
According to the complaint, Martinez contacted an individual by Facebook in California in order to hire someone to kill her husband. On October 17, 2014, Martinez met with an undercover FBI Special Agent, whom she believed was a hit man. Martinez advised the undercover agent that she wanted her husband dead and provided the agent with $350 in U.S. currency and promised additional payment later in the week. She provided the agent with a hand written note, which contained her husband’s name, the address of his employment and the address of his mother’s home, where he was recently living. Martinez showed the agent photographs of her husband on her smartphone, provided his work schedule, described his tattoos, and described the vehicle he drove. Martinez suggested that the best time to kill her husband was either as he got off work or when he was leaving his gym. Martinez was arrested in Nampa on October 22, 2014, at her residence in Nampa.
Using interstate commerce facilities in the commission of murder-for-hire is punishable by up to ten years in prison, a $250,000 fine, and three years of supervised release.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force. The Metro Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and the Idaho Department of Correction.
A complaint is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Muscatine Man Sentenced on Federal Drug Trafficking OffenseRead the Press Release
DAVENPORT, IA – On October 23, 2014, Russell Lee Brossart, age 42, of Muscatine, Iowa, was sentenced to 168 month in prison by Chief United States District Judge James E. Gritzner for conspiracy to distribute at least 500 grams of a mixture of substance containing methamphetamine and at least 50 grams of actual methamphetamine, announced United States Attorney Nicholas A. Klinefeldt. Brossart was ordered to serve five years supervised release following the imprisonment, and to pay $100 towards the Crime Victims Fund.
Beginning about November 15, 2013, and continuing until about February 21, 2014, Brossart distributed more than 50 grams of actual methamphetamine in the Muscatine, Iowa area. During November 2013, law enforcement utilized a confidential informant to complete two controlled purchases of “ice”—also referred to as “crystal”—methamphetamine from Brossart while under law enforcement surveillance. On November 25, 2013, law enforcement executed a search warrant for Brossart’s vehicle in Muscatine and located, among other things, approximately 6 grams of ice methamphetamine. On February 20, 2014, law enforcement located an additional 29.66 grams of ice methamphetamine in a vehicle driven by Brossart. On February 21, 2014, police executed a search warrant at Brossart’s residence in Muscatine and seized approximately 60 grams of ice methamphetamine, a digital scale, and packaging materials. All of the above-referenced methamphetamine belonged to Brossart. Brossart knowingly distributed ice methamphetamine to multiple customers in the Muscatine area.
This case was investigated by the Iowa Department of Narcotics Enforcement, the Muscatine County Sheriff’s Office, the Muscatine, Iowa, Police Department, the Muscatine County Drug Task Force, the Johnson County Drug Task Force, and the U.S. Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release)
Monroe County Man Sentenced to 47 Months in Prison for Distributing Crack CocaineRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 32-year-old Stroudsburg man was sentenced to 47 months in prison yesterday by Senior U.S. District Court Judge James M. Munley for distributing crack cocaine in the Monroe County area during a seven-month time period.
According to United States Attorney Peter Smith, the defendant, Dominic Darby, previously pleaded guilty to distributing and possessing with intent to distribute crack cocaine from October 2013 to April 30, 2014.
Darby was charged in a criminal Information filed by the United States Attorney on July 17, 2014, following an investigation by special agents of the Federal Bureau of Investigation and the Pennsylvania State Police.
Darby must also serve three years on supervised release following his prison sentence, and pay a $100 special assessment.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Michigan Pizza Franchise Owners Plead GuiltyRead the Press Release
Today, two West Bloomfield, Michigan, residents pleaded guilty to tax fraud in the U.S. District Court for the Eastern District of Michigan, announced the Justice Department and Internal Revenue Service (IRS).
Maher Bashi, who served as Happy’s Pizza’s corporate chief operating officer, and Tom Yaldo, an owner of numerous Happy’s Pizza franchises, pleaded guilty to conspiracy to defraud the United States. According to the indictment, their conduct included, among other things, creating and maintaining fraudulent accounting records and falsely reporting income taxes and payroll taxes.
A multiple count indictment was unsealed July 16, 2013, alleging that from approximately June 2004 through April 2011, Bashi, Yaldo and others conspired to divert business receipts, underreport wages and understate the true income and expenses of specified Happy’s Pizza franchises. According to the indictment, the scheme resulted in the specified franchises paying more than $2.1 million in unreported wages to employees and shareholders.
Documents filed with the court indicate Bashi, Yaldo and others executed a scheme which systematically underreported the taxable income and payroll taxes of Happy’s Pizza franchises to the IRS and distributed the resulting gain among the conspirators and other Happy’s Pizza franchise partners. Additionally, documents filed with the court indicate Yaldo caused at least three Happy’s Pizza franchises in which he held an ownership interest to file false corporate income tax returns in 2008 and 2009 that underreported a total of more than $1,581,000 in gross receipts. According to the plea agreement, Bashi and Yaldo will pay restitution to the IRS for unpaid income taxes and employment taxes.
Bashi and Yaldo each face a statutory maximum sentence of five years in prison and a fine of up to $250,000.
This case was investigated by IRS – Criminal Investigation, the Drug Enforcement Administration and the FBI. It is being prosecuted by Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Justice Department’s Tax Division.
Miami-Dade Residents Convicted in $8 Million Investment Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Lawrence Foster, 49, of Miami Beach, the President of Paradise is Mine, was found guilty by a federal jury in Miami of conspiring to commit wire fraud and seven counts of wire fraud. Johana Leon, 38, of Miami Beach, a corporate officer of Paradise is Mine, meanwhile, was found guilty of three counts of structuring currency transactions by the same jury.
The trial evidence showed that Paradise is Mine received approximately $8 million from approximately 90 investors after the company promised that it owned land in the Bahamas and would use investor funds to develop the island of Rum Cay in the Bahamas. In its promotional materials, Paradise is Mine claimed that it was featured in the Wall Street Journal, USA Today and other publications, and that Super Bowl MVP Joe Montana and other celebrities purchased land from Paradise is Mine. Bank records, however, show that no money went to the Bahamas. Instead, Leon withdrew over $1 million as cash below the $10,000 currency transaction reporting level. Foster spent investor money on personal expenses, including gardening and a Bentley GT. Witnesses from the Wall Street Journal and USA Today testified that the Paradise is Mine articles had never appeared in either publication. Finally, the accountant for Joe Montana testified that Mr. Montana never received land from Paradise is Mine.
United States District Judge Donald L. Graham remanded Foster to the custody of the Bureau of Prisons and set sentencing for January 5, 2015. Foster faces a maximum term of 20 years in prison for each count. Leon faces a term up to five years in prison for each count of conviction.
Mr. Ferrer commended the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorneys H. Ron Davidson, Robert Watson, and Harold Schimkat.
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.
Miami-Dade Resident Sentenced in Stolen Identity Unemployment Insurance Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Richard Walker, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations (OLRFI-Miami), and Jesse Panuccio, Executive Director, State of Florida’s Department of Economic Opportunity (DEO) announce that Rodney Fleurimond, 24, of Miami, was sentenced today before U.S. District Judge Federico A. Moreno to twenty-four months and one day in prison, to be followed by three years of supervised release. Fleurimond was furthered ordered to pay $60,405 in restitution.
Fleurimond previously entered a plea of guilty to one count of fraudulently using unauthorized access devices to obtain anything of value aggregative over $1,000, in violation of Title 18, United States Code, Section 1029(a)(2), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court records, from October 20, 2013 through June 26, 2014, the State of Florida unemployment insurance claims of at least 188 victims were accessed online from Fleurimond’s residences using the victims’ personally identifying information, including their names and social security numbers. A total of $60,405 in fraudulent unemployment insurance benefits was paid into bank accounts controlled or used by Fleurimond. Specifically, the fraudulent unemployment insurance claims of eleven victims were deposited into Fleurimond’s personal checking account; twelve additional fraudulent claims were deposited into other accounts associated with Fleurimond. Bank photographs reflect Fleurimond withdrew fraudulent funds from each of these accounts. The amount of loss resulting from Fleurimond’s offense was $142,905.
Mr. Ferrer commended the investigative efforts of OLRFI-Miami and DEO. This case was prosecuted by Assistant U.S. Attorney Jamie R. Galvin.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican National Sentenced for Meth DistributionRead the Press Release
POCATELLO – Jose Fabian Felix-Burgos, 41, of Sinaloa, Mexico, was sentenced yesterday to 115 months in prison, followed by three years of supervised release for distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Felix-Burgos to pay a $400 fine. Felix-Burgos pleaded guilty to the charge on June 25, 2014.
According to the plea agreement, on August 1, 2013, the defendant assisted in the delivery of methamphetamine to an undercover officer in Heyburn, Idaho. Specifically, the defendant met with a co-defendant and the undercover officer at a restaurant in Heyburn, Idaho. The purpose of the meeting was to provide methamphetamine to the undercover officer. During the meeting, at the direction of the co-defendant, the defendant retrieved a box containing over a pound of methamphetamine from their vehicle, and gave it to the undercover officer.
The case was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration, in conjunction with, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Canyon County Narcotics Unit, Meridian Police Department, Ada County Sheriff’s Office, Idaho State Police, and the Mini-Cassia Drug Task Force.
The OCDETF program is a federal multi agency, multi jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Mexican National Indicted for Sequoia National Park Marijuana Cultivation OperationRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Toribio Cruz-Galvan (Cruz), 29, an undocumented alien from Michoacàn, Mexico, charging him with conspiring to manufacture, distribute, and possess with intent to distribute marijuana, manufacturing marijuana, possessing marijuana with intent to distribute, and damaging public land and natural resources, United States Attorney Benjamin B. Wagner announced.
According to court documents, Cruz was involved in the cultivation of 1,016 marijuana plants in the Yucca Mountain area of Sequoia National Park. The Yucca Mountain area is in an area generally known for its spring wildflower display. In addition to growing marijuana plants, park rangers found processed marijuana, a shotgun, ammunition for various firearms, and a digital scale. The marijuana cultivation operation caused significant damage to National Park land and natural resources. Fertilizer, rodenticide, propane tanks, and 300 pounds of trash were removed from the grow site. It is estimated that over one million gallons of water was diverted from a nearby spring to irrigate the marijuana plants.
This case is the product of an investigation by the National Park Service. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Cruz is detained as a flight risk and danger to the community and is scheduled for arraignment and plea on the indictment on December 15, 2014.
If convicted of the drug offenses, Cruz faces a maximum statutory penalty of 20 years in prison and a $1 million fine. The maximum statutory penalty for the environmental crime is 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.Medina Man Faces Crack Cocaine ChargesRead the Press Release
A federal grand jury returned a one-count indictment charging Jeimil A. Henderson, age 22, of Medina, with possession with the intent to distribute and distribution of crack cocaine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Henderson was arrested by members of the Medina County Drug Task Force and Drug Enforcement Administration on a criminal complaint after an investigation.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Medina County Drug Task Force, Medina Police Department and the Drug Enforcement Administration. The matter is being prosecuted by Assistant United States Attorney Teresa Riley.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Mecklenburg Co. Social Worker Pleads Guilty in Connection with Medicaid Fraud SchemeRead the Press Release
The Defendant Stole the Identities of Clients and Sold them to Conspirator in Exchange for Cash and Gifts
CHARLOTTE, N.C. – A social worker with the Mecklenburg County Department of Social Services (DSS) appeared in federal court today and pleaded guilty to federal charges for her role in a healthcare fraud scheme involving the stolen identities of clients enrolled with the Medicaid program, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Ieshia Hicks Watkins, 33, of Charlotte, pleaded guilty before U.S. Magistrate Judge David S. Cayer to one count of health care fraud conspiracy and one count of receiving illegal kickbacks.
U.S. Attorney Tompkins is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte.
According to filed court documents and today’s plea hearing, October 2010 to February 2012, while employed at DSS, Watkins stole the names and identities of DSS clients, most of whom were minors. As a social worker, Watkins had access to the information contained in the client files on her caseload and the caseload of others within DSS. Court records indicate that Watkins sold the stolen information to her conspirator, Ronnie Lorenzo Robinson, who then used it to file fraudulent reimbursement claims with Medicaid for sham mental and behavioral health services that were never provided to those Medicaid recipients.
Watkins admitted in court today that she sold the misappropriated information in exchange for cash and gifts. According to information contained in court filings, Watkins received at least $10,000 as payment for selling DSS client names and identifying information to Robinson. Robinson then submitted nearly $30,000 in false and fraudulent claims to Medicaid using the stolen information.
“Driven by greed, Watkins used her position to access the personal information of DSS clients and sold it to her conspirator in exchange for cash and gifts. This case is particularly troubling because these were families and minor children whose welfare Watkins was assigned to protect. Instead, she turned them into victims of identity theft for her own benefit. Since Watkins’ conscience wasn’t enough to stop her from committing this crime, my office will make sure she’s held accountable for it,” said U.S. Attorney Tompkins.
“Ieshia Watkins utilized her trusted position as a social worker to victimize some of the most vulnerable families in North Carolina. Instead of putting the best interests of those parents dependent on Medicaid for their children’s care, Ms. Watkins allowed personal greed to override the commitment she made to those families. Health care fraud wastes taxpayer’s money and increases costs for everyone,” said John Strong, Special Agent in Charge of the FBI in North Carolina.
At sentencing, Watkins faces a maximum term of 10 years in prison and a $250,000 fine for the health care fraud conspiracy charge. She also faces a maximum of five years in prison and a $250,000 fine for receiving illegal kickbacks. In her plea agreement, Watkins has agreed to pay full restitution to Medicaid for any losses resulting from her criminal scheme. The final restitution amount will be determined by the court at Watkins’ sentencing hearing, which has not been scheduled yet. Watkins remains free on bond pending sentencing.
Robinson pleaded guilty in January 2014 to two counts of health care fraud and is currently awaiting sentencing.
The investigation into Watkins was handled by the FBI with assistance from the North Carolina Medicaid Investigations Division. The prosecution was handled by Assistant U.S. Attorney Kelli Ferry of the U.S. Attorney’s Office in Charlotte.
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
McLaughlin, SD Man Sentenced for Abusive Sexual Contact with a MinorRead the Press Release
Bismarck - U.S. Attorney Timothy Q. Purdon announced that on October 23, 2014, Peter Spotted Horse, age 60, McLaughlin, SD, was sentenced before U.S. District Judge Daniel L. Hovland to serve 51 months imprisonment for Abusive Sexual Contact with a Minor.
Spotted Horse was charged by Indictment with Abusive Sexual Contact on January 8, 2013. Spotted Horse later changed his plea to guilty. Judge Hovland also sentenced Spotter Horse to five years supervised release and ordered him to pay $100 special assessment to the Crime Victims Fund, as well as restitution later to be determined.
This case was investigated by the Bureau of Indian Affairs.
Assistant U.S. Attorney Gary Delorme prosecuted the case.
Mastermind of International Diamond Center Robbery SentencedRead the Press Release
Tampa, FL – U.S. District Judge Charlene Edwards Honeywell yesterday sentenced Bryan Bobby Beaudoin (25, Orlando) to 11 years and 6 months in federal prison for conspiring to commit robbery and using a firearm in furtherance of the armed robbery. The Court also ordered Beaudoin to forfeit $6,277, which represents the proceeds from the sale of stolen jewelry and the firearm used in the robbery. He pleaded guilty on July 31, 2014.
According to court documents, on November 22, 2013, Clyde Bernard Johnson and Anthony Mina Wahba entered the International Diamond Center in Tampa, concealing their identities with sunglasses and hats. Johnson brandished a black 9mm pistol and took control of the store, while Wahba took a hammer and went directly to the glass display cases containing expensive watches, loose diamonds, and diamond rings. Wahba shattered the glass cases with the hammer and retrieved numerous items of jewelry, with an approximate retail value of $2.1 million. They also stole some of the victim-employees’ wallets. Before the pair fled the store, Johnson fired a shot into the floor near the counter.
Beaudoin, who had conducted surveillance on the store earlier that day, planned the robbery and gave instructions to Johnson and Wahba. He also provided Johnson with the firearm used in the robbery. Beaudoin waited at a nearby location during the robbery, and then later met with Johnson and Wahba to split the proceeds. As the three were traveling back to the Orlando area, they stopped at a gas station and used one of the victim-employee’s stolen credit cards to purchase fuel. All three men were captured on the gas station’s surveillance videotape. When law enforcement officers attempted to arrest Beaudoin, he fled, but he was ultimately apprehended after a car chase through the Orlando area.
Johnson and Wahba previously pleaded guilty for their roles in the armed robbery and are scheduled to be sentenced later this month.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Josephine W. Thomas.
This case is a part of ATF’s Frontline Strategy to combat violent crime in communities.
Martinsburg Man Convicted of Cocaine TraffickingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Eddie Young, III, 40, of Martinsburg, West Virginia, was convicted for his role in a drug trafficking ring, United States Attorney William J. Ihlenfeld, II, announced today.
Young pled guilty today to one count of “Use of Telephone to Facilitate Distribution of Cocaine Base” after an investigation by the Eastern Panhandle Drug and Violent Crimes Task Force. He faces up to eight years in prison and a fine of up to $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Jarod Douglas and Anna Krasinski prosecuted the case on behalf of the government.
U.S. District Judge Gina M. Groh presided.
Manhattan U.S. Attorney Files Civil Injunction Lawsuit Against Five Tax Preparers to Prohibit Them from Engaging in Tax Preparation BusinessRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States filed a civil injunction complaint in Manhattan federal court against five individuals, LESTER MORRISON, PAULETTE BULLOCK, GARY HANNA, JOY DAVID, and KEVIN VADEN, who were previously convicted of preparing fraudulent federal tax returns through a tax preparation business, to prohibit them from preparing tax returns for others or engaging in activities that substantially interfere with the administration of federal tax laws.
Manhattan U.S. Attorney Preet Bharara said: “Tax preparers who filed fraudulent returns using the names of deceased children or by concocting phony business losses should not be permitted to continue preparing tax returns for others. This Office is committed to bringing cases like this to protect the integrity of the tax system and the general treasury, which is, after all, the people’s money.”
As set forth in the Complaint:
MORRISON, BULLOCK, HANNA, DAVID, and VADEN all were involved in a tax preparation business with locations in the Bronx and in Englewood, New Jersey. Through that tax preparation business, defendants orchestrated a tax fraud scheme from 2000 to 2008. As part of the scheme, defendants prepared thousands of false and fraudulent tax returns that sought improper deductions through a variety of deceptive means. For example, defendants used the stolen identities of deceased children to claim those children as dependents for the purpose of seeking deductions, claimed phony business losses for non-existent businesses, and falsely claimed education credits.
In 2009 and 2010, all five defendants were indicted based on their participation in this tax fraud scheme. Subsequently, all defendants pled guilty to tax fraud in federal court. HANNA, DAVID, and VADEN have been released from prison, while BULLOCK and MORRISON are scheduled to be released in 2015 and 2016, respectively.
To prevent these defendants from resuming the practice of preparing false and fraudulent tax returns or otherwise interfering with tax collection and administration in the future, the United States seeks a permanent injunction against each defendant to bar him or her from preparing tax returns for others or engaging in any other activity that substantially interferes with the administration of federal tax laws.
The case is being handled by the Office’s Tax and Bankruptcy Unit. Assistant U.S. Attorney Li Yu is in charge of the case.
Manhattan U.S. Attorney and EPA Announce Lawsuit Against Poultry Slaughterhouse for Violations of Federal Clean Water ActRead the Press Release
Defendants Agree to Injunctive Relief and Payment of $330,000 Penalty
Preet Bharara, the United States Attorney for the Southern District of New York, and Judith Enck, Regional Administrator of the U.S. Environmental Protection Agency (“EPA”), announced today that the United States has filed and simultaneously entered into a consent decree settling a civil lawsuit against the KIRYAS JOEL POULTRY PROCESSING PLANT, INC. and KIRYAS JOEL MEAT MARKET CORPORATION (collectively, “Defendants”), for violations of the Clean Water Act (“CWA”) in connection with the operation of a poultry processing plant in Orange County.
U.S. Attorney Preet Bharara stated: “For years, the defendants flouted the law by repeatedly discharging waste from their poultry slaughterhouse into the waters of the United States. Today’s consent decree will ensure that the defendants do not resume these illegal practices in the future and requires them to pay a significant financial penalty for their misconduct. ”
EPA Regional Administrator Judith Enck stated: “From disposing of chicken parts and fats directly into storm drains and sewers, to discharging animal waste into Ramapo River tributaries, this poultry processing plant has a long history of violating the Clean Water Act. This legal agreement and fine will help protect the Ramapo River.”
According to the allegations in the Complaint filed today in White Plains federal court:
At various times between September 2008 and March 2012, the Defendants have spilled and allowed the overflow of untreated wastewater from their poultry processing plant into storm drains and storm sewers that discharge into two tributaries of the Ramapo River, known as Highland Brook and Tributary No. 25, in the Village of Kiryas Joel, in Orange County, New York. Between January 2008 and May 2011, Defendants also failed to obtain a permit for the discharge of stormwater associated with industrial activities, and illegally discharged contaminated stormwater through storm drains. Finally, from January 2008 to April 2011, Defendants discharged substantial volumes of untreated wastewater to the local sewage plant, interfering with that plant’s operations and causing contaminated waste to be discharged into the waters of the United States in violation of the sewage plant’s permit.
In the consent decree filed today, Defendants admit, acknowledge, and accept responsibility for the following:
- At various times between September 2008 and March 2010, and again on March 18, 2012, Defendants took inadequate steps to prevent spills of untreated wastewater from overflowing into storm drains that discharged to waters of the United States.
- From at least 2008 until May 1, 2011, as dischargers of stormwater associated with industrial activity, Defendants failed to apply for an individual permit or to seek coverage under a stormwater general permit, as required by law.
- At various times from at least 2008 until May 1, 2011, Defendants took inadequate steps to prevent stormwater associated with their industrial activities from discharging into storm drains and storm sewers that ultimately discharged into waters of the United States.
- At various times between January 2008 and April 2011, Defendants discharged wastewater containing excess concentrations of pollutants into the sewage plant at levels that caused violations of the plant’s permit.
Pursuant to the consent decree filed today in the United States District Court in White Plains, Defendants will pay a civil penalty of $330,000. To ensure Defendants’ compliance with the CWA, Defendants also agree, among other measures, to conduct ongoing monitoring and recording of pretreatment operations and to submit to EPA an emergency operation plan and a corrective plan of action to prevent CWA violations from reoccurring. Defendants will be subject to substantial additional penalties if they fail to adhere to any of the deadlines in the consent decree and cause further violations of the CWA.
The consent decree will be lodged with the Court for a period of at least 30 days before it is submitted for the Court’s approval, in order to provide public notice and to afford members of the public the opportunity to comment on the consent decree.
This case is being handled by the Office’s Environmental Protection Unit. Assistant United States Attorney Tomoko Onozawa is in charge of the case.
KJP CD - 2014.10.23 CONSENT DECREE (to be filed)
United States v. KJPPP, 14 Civ. 8458 (VB) - ComplaintLouisiana Tax Return Preparer Sentenced to Prison for Filing False Income Tax Returns and Identity TheftRead the Press Release
A Robert, Louisiana, woman was sentenced today to serve 87 months in prison for filing false tax returns, corruptly endeavoring to obstruct or impede the Internal Revenue Service (IRS) and aggravated identity theft, announced the Justice Department and IRS.
Hazel M. McGary, 46, aka Hazel M. Alexander and Hazel M. Kimble, was also ordered to serve two years of supervised release following her prison term and to pay $148,673 in restitution to the IRS.
According to court documents, from 2008 through November 2013, McGary owned and operated a series of tax preparation businesses under different names, including Just for You Services, Just For Taxes and H&H Unlimited Services, in Hammond, Albany, Baton Rouge and Covington, Louisiana. In 2012, McGary’s tax preparation location in Albany operated as a business where clients were permitted to drive their cars to a drive-through window in order to have their tax returns prepared.
As part of her plea agreement, McGary admitted that she prepared and filed false returns that claimed artificially high tax refunds, primarily by abusing the Earned Income Tax Credit. Court documents further show that McGary obtained electronic filing numbers from the IRS using the names and social security numbers of other individuals in an effort to hide her fraudulent activity. McGary falsely listed these other individuals’ names and identification numbers on the returns she filed but did not identify herself as the preparer. McGary further filed at least one false return in her own name on which she failed to include tax preparation fees she received as income.
Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department’s Tax Division would like to thank IRS-Criminal Investigation, in partnership with the Louisiana State Police, who investigated the case, and Trial Attorneys Hayden Brockett and Kevin Lombardi of the Tax Division, who prosecuted the case.
Lorain Man Faces Child Pornography IndictmentRead the Press Release
Robert Noel, 54, of Lorain, was charged with receiving and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about August 16, 2014, through on or about September 17, 2014, in the Northern District of Ohio, Eastern Division, and elsewhere, Noel knowingly received, using any means and facility of interstate and foreign commerce, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct, and which files had been shipped and transported in and affecting interstate and foreign commerce.
The indictment also charges that on September 25, 2014, Noel possessed an external computer hard drive that contained child pornography.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Elyria Office of the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Lorain Man Charged with Child Pornography ViolationsRead the Press Release
Scott Eric Sherwood, 54, of Lorain, was charged with transporting and possessing visual depictions of minors engaged in sexually explicit conduct, Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about October 1, 2012, through on or about November 1, 2013, in the Northern District of Ohio, Eastern Division, and elsewhere, Sherwood knowingly transported, using any means and facility of interstate and foreign commerce and in and affecting interstate and foreign commerce, numerous computer files, which files contained visual depictions of a real minor engaged in sexually explicit conduct.
The indictment also charges that on September 25, 2014, Sherwood possessed an external computer hard drive that contained child pornography.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Elyria Office of the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
- Local Teacher Arrested on Child Pornography Charges
Lapwai Man Pleads Guilty to Failing to AppearRead the Press Release
COEUR D'ALENE - Delbert Daniel George, 30, of Lapwai, Idaho, pleaded guilty yesterday to failing to appear for sentencing, U.S. Attorney Wendy J. Olson announced. George was indicted by a federal grand jury in Coeur d'Alene on May 20, 2014.
According to the plea agreement, George admitted that on May 8, 2014, he was to be sentenced for the offense of making a false statement to a federal official. He did not appear for sentencing and the court issued a warrant for his arrest. George was later arrested by Nez Perce Tribal Police.
The charge of failure to appear is punishable by up to five years in prison, a maximum fine of $250,000.00, and up to three years of supervised release. Any sentence the court imposes for George’s failure to appear must run consecutive to the sentence he receives for his initial violation of making a false statement to a federal official.
Sentencing is set for January 29, 2015, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Coeur d'Alene. George will remain in custody until his sentencing.
The case was investigated by the Nez Perce Tribal Police and the Federal Bureau of Investigation (FBI).
Lancaster Man Sentenced to 80 Months in Federal Prison for Transporting and Shipping Child PornographyRead the Press Release
DALLAS — Meliton Torres, 32, of Lancaster, Texas, was sentenced this afternoon by U.S. District Judge Ed Kinkeade to 80 months in federal prison following his guilty plea in September 2013 to one count of transporting and shipping child pornography. Judge Kinkeade remanded Torres, who had been on bond, into custody. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to plea documents filed in the case, Torres admitted using the Internet and file-sharing software to share and transmit images and video files of minors engaged in sexually explicit conduct. In March 2012, an officer with the Dallas Police Department’s Internet Crimes Against Children (ICAC) Unit, working online in an undercover capacity, downloaded images and videos from Torres’s shared files. On March 16, 2012, the Dallas Police Department executed a search warrant at Torres’s residence and seized computers and computer media, which were then analyzed by the North Texas Regional Computer Forensic Lab. More than 200 images and videos of child pornography were on the seized media. Of those, 23 images and 18 videos depicted victims who have been identified.
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 investigation was conducted by the Dallas Police Department’s ICAC and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Camille Sparks prosecuted.
Kansas Man Charged with Armed Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Johnson County, Kan., man was charged in federal court today for the armed robbery of Bank of Weston.
Marcus Aurellius Moon, 29, of Johnson County, Kan., was charged in a two-count criminal complaint filed in the U.S. District Court in Kansas City, Mo.
Today’s criminal complaint alleges that Moon stole approximately $26,000 from the Bank of Weston on Wednesday, Oct. 22, 2014, and that he used a firearm during a crime of violence.
According to an affidavit filed in support of the federal criminal complaint, Moon entered the bank wearing a silver ski mask and carrying a semi-automatic handgun. Moon allegedly walked up to a teller station, pointed his handgun at a bank employee, and said “gimmie the money.” The teller put the money in a plastic bag that Moon was holding, the affidavit says. Moon allegedly noticed another bank employee was counting money, and demanded money from the second employee, who put several stacks of cash into the bag. Moon then allegedly went to another teller station and demanded cash before fleeing from the bank.
The Platte County Sheriff’s Department broadcast to neighboring jurisdictions about the robbery, including a vehicle description and a description of the suspect. Officers with the Atchison, Kan., Police Department set up surveillance around the Amelia Earhart Bridge. They saw Moon driving a vehicle that matched the description given in the broadcast and tried to stop it. However, according to the affidavit, Moon placed the vehicle in reverse, striking police vehicles and escaping. During Moon’s attempts to flee, an Atchison police officer fired his gun. Moon was not struck and was able to escape. Atchison police pursued the suspect for several blocks until his vehicle got stuck in a residential area and Moon was taken into custody.
Officers found a loaded SCCY 9mm handgun inside the vehicle, the affidavit says, along with a silver ski mask and a large amount of money.
Dickinson cautioned that the charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Atchison, Kan., Police Department, the Weston, Mo., Police Department, the Platte County, Mo., Sheriff’s Department and the FBI.KC Man Charged with Producing Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was charged in federal court today with producing child pornography after taking videos and photos of a teenager who responded to his online advertisement for modeling.
Marcus S. Clarke, 42, of Kansas City, was charged in a criminal complaint filed in the U.S. District Court of Kansas City, Mo., with producing child pornography.
According to an affidavit filed in support of today’s criminal complaint, a 15-year-old girl, identified in court documents as MV (“minor victim”), had been sending and receiving text messages on a borrowed cell phone. The cell phone’s owner notified a Prairie Village, Kan., police detective when she noticed a text conversation about a modeling photo shoot.
MV told law enforcement officers that she responded to a Craigslist advertisement for models for a photo shoot. Clarke allegedly picked her up at a park in Prairie Village on Oct. 3, 2014, and drove her to his apartment in the Northland. When they arrived at the apartment, the affidavit says, Clarke put a flash drive in his television to display photos of nude females to MV. MV described the images to law enforcement officers as “disturbing” because the women were nude and engaged in sexual activity.
Clarke allegedly took both nude and non-nude photos and videos of MV using a digital camera and digital recorder. During one of the video recordings, Clarke allegedly engaged in sexually explicit conduct with MV. According to the affidavit, investigators learned that Clarke had been advertising online for lingerie and nude modeling as far back as September 2012.
An FBI agent used the same cell phone that MV had used to contact Clarke, the affidavit says. Several text messages were exchanged in which Clarke allegedly made arrangements to meet MV again for another photo shoot. When Clarke arrived at the Prairie Village park to meet MV at about 8:45 p.m. on Wednesday, Oct. 22, 2014, he was placed under arrest.
Law enforcement officers executed a search warrant at Clarke’s residence and seized computers and computer storage devices that contained sexually explicit videos of MV.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Catherine Connelly. It was investigated by the FBI and the Prairie Village, Kan., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Justice Department Election Day ProgramRead the Press Release
United States Attorney Walt Green announced today that the United States Attorney’s Office and the local Office of the Federal Bureau of Investigation, in consultation with Justice Department Headquarters, are prepared to receive and review allegations of election fraud and voting rights abuses related to the upcoming November elections.
The Justice Department’s Election Day Program 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.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, altering vote tallies, submission of fraudulent votes, and voting for another person against his wishes or without his input. The law contains special protection for the rights of voters. Voters have a right to cast their own votes or to be assisted by a person of their choice. Additionally, voters have a right to vote free from acts of intimidation or harassment. For example, actions designed to intimidate or interrupt 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.
To report suspected election fraud or interference with the right to vote, members of the public can contact the United States Attorney’s Office at 225-336-8856 or 225-389-0443. Members of the public can also make such reports to the FBI at 225-291-5159. Additionally, complaints regarding possible violations of voting rights laws can be made directly to the Justice Department’s Voting Section by phone to 800-253-3931 or 202-307-2767, by fax to 202-307-3961, by email to [email protected], or on the Internet at http://www.justice.gov/crt/complaint/votintake/index/php.
- Jury Convicts Brownsville Woman of Harboring Illegal Aliens
Hancock County Probate Judge Pleads Guilty to EmbezzlementRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia announced that Marva Rice, the Probate Judge for Hancock County, entered a guilty plea on Thursday to two counts of Theft of Federal funds from Hancock County, which receives federal funds. Rice faces a maximum sentence of up to ten years imprisonment, a fine of up to $250,000, and up to three years of supervised release.
Facts stipulated in the written plea agreements show the following: The Hancock Probate Judge was responsible for collecting fines and fees and for depositing those funds into the Probate Court bank account. An investigation by the Federal Bureau of Investigation revealed that in the year 2012, Rice failed to deposit funds in the amount of $43,864.70. In 2013, after the FBI was conducting its investigation, Rice used Hancock County funds to pay for her own personal legal fees, in the amount of $20,000.
Sentencing will take place in approximately sixty days.
"Election to public office is a sign of trust by the voters and the public in the integrity and honesty of those they choose to govern them. Theft of funds entrusted to you as an elected public official is not only a violation of that trust but erodes the faith of the people in government and elected officials generally. To steal further funds to defend yourself when caught is simply reprehensible," said United States Attorney Michael J. Moore.
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: "Today's guilty plea will begin the process of holding Hancock County Probate Judge Rice responsible for her criminal actions involving the embezzlement of public funds. The FBI will continue to aggressively pursue any and all allegations of similar such conduct by public officials attempting to divert public funds to their own bank accounts."
The case was investigated by Special Agent Gregory McClendon of the Federal Bureau of
Investigation. The case was prosecuted by Assistant United States Attorney Graham Thorpe.
For additional information please contact Pamela Lightsey, Public Affairs Specialist, United States Attorney's Office at (478) 621-2603.Guatamalan Man Charged with Illegally Being in U.S. Despite FelonyRead the Press Release
A federal indictment was filed today charging an individual with being found in the United States without permission after previously being deported, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Vicente Sica-Ixcoy, 32, a citizen of Guatemala, is named in the indictment. The indictment charges one count of being found inside the United States in the Northern District of Ohio without the express permission of the Attorney General of the United States or the Secretary for Homeland Security.
The indictment alleges that on or about September 18, 2014, the defendant was found in Dover, Ohio, having previously been deported on at least one occasion from the United States, subsequent to a conviction for the commission of an aggravated felony, namely unlawful sexual contact with a minor, in the Common Pleas Court of Tuscarawas County, Ohio.
The case is being prosecuted by Assistant United States Attorney Marisa T. Darden, following an investigation by the Department of Immigration and Customs Enforcement. If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Four Sentenced on Heroin Charges in Federal Court in BeckleyRead the Press Release
Beckley, W.Va. – United States Attorney Booth Goodwin announced today that four defendants were sentenced in federal court in Beckley on heroin charges. Douglas Edward Morris, 43, of Beckley, was sentenced to seven years in prison, and Tommy Ray Prater II, 34, of Shady Spring, West Virginia was sentenced to five years in prison. The two had pled guilty to traveling in interstate commerce to facilitate an unlawful activity, admitting that in April of 2013 they traveled to Camden, New Jersey, to obtain heroin that they later sold in the Shady Spring area. During about 10 weeks in 2013, Morris and Prater obtained about thousands of heroin stamps in New Jersey. Morris also pled guilty to a felony possession of heroin charge related to the heroin obtained in New Jersey. Morris and Prater were investigated by the West Virginia State Police Bureau of Criminal Investigations and the Federal Bureau of Investigation.
Christopher Miller, 32, of Alderson, was sentenced to ten months in prison for distribution of heroin. He pled guilty on June 25, 2014, and admitted that on August 14, 2013, he sold heroin to a confidential informant in Alderson, West Virginia. He further admitted that he sold a total of about 2.8 grams of heroin in the several transactions. Tiffany Rose Arbogast, 24, of Buckeye, was sentenced to six months in prison for distribution of heroin. She pled guilty on July 9, 2014, admitting that on December 15, 2013, she sold heroin to a confidential informant in Lewisburg. She also admitted that she was involved in distributing a total of between five and ten grams of heroin. Miller and Arbogast were investigated by the Greenbrier Valley Drug and Violent Crime Task Force as part of the Greenbrier Heroin and Pill Initiative.
The case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District. Assistant United States Attorney John File handled the prosecution of these cases.
Four Metroeast Women Indicted for Participating in Fraudulent Tax Refund SchemeRead the Press Release
Follow @SDILNewsA federal grand jury returned an eight-count indictment on October 22, 2014, charging four metro-east women with participating in a scheme to submit false claims for federal tax refunds, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Sylvia Baker, 30, from Fairview Heights and Alicia Jackson, 40, from Belleville, are charged with participating in a conspiracy to defraud the United States by making false claims for tax refunds to the Internal Revenue Service by submitting false federal income tax returns. Sylvia Baker is also charged in five additional counts of submitting false tax returns for others and is charged with making a false statement to the Internal Revenue Service when interviewed during the criminal investigation. She faces a prison sentence of up to 40 years, a fine of up to $250,000, and up to 3 years’ supervised release after serving her sentence, and mandatory restitution. Alicia Jackson is also charged in two additional counts for making false claims for federal tax refunds and faces a prison sentence of up to 20 years, a fine of up to $250,000, and up to 3 years’ supervised release after serving her sentence, as well as mandatory restitution. Lamarion Shanes, 32, from East St. Louis, is charged in two counts of making false claims for federal tax refunds and faces a prison sentence of up to 20 years, a fine of up to $250,000, and up to 3 years’ supervised release after serving her sentence, and mandatory restitution. Sylvin Baker, 58, from East St. Louis, is charged in one count of making a false claim for a federal tax refund in submitting a false federal income tax return and faces a prison sentence of up to 5 years, a fine of up to $250,000, and up to 3 years’ supervised release after serving her sentence, as well as mandatory restitution.
An indictment is a formal charge. A defendant is presumed innocent unless found guilty beyond a reasonable doubt.
The prosecution is the result of an investigation conducted by the Internal Revenue Service/Criminal Investigations. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Former Harrisburg Bank Branch Manager Sentenced for Bank LarcenyRead the Press Release
The U.S. Attorney's Office for the Middle District of Pennsylvania announced today that Sandra R. Powers, 57, Harrisburg, Pennsylvania, was sentenced to one year and one day imprisonment by Chief U.S. District Court Judge Christopher C. Conner for a bank larceny involving $125,815. Powers was ordered to surrender to the U.S. Bureau of Prisons by January 8, 2015 to commence serving her sentence.
According to U.S. Attorney Peter Smith, Powers was employed as a branch manager for Integrity Bank's Allentown Boulevard and Colonial Road branches located in Harrisburg, Pennsylvania. Powers previously pled guilty to stealing $125,815 from a customer's account between May 2012 and March 2013. Powers was terminated by Integrity Bank in March 2013 and subsequently made full restitution to the bank.
The case was investigated by the Federal Deposit Insurance Corporation Office of Inspector General, Office of Inspector General of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau and the FBI and was prosecuted by Senior Litigation Counsel Bruce Brandler for prosecution.
- Former Executive Convicted of Defrauding Health Care Company
Former Eastern District of Texas Prosecutor Recognized by Homeland SecurityRead the Press Release
Department of Justice
Office of Public AffairsWASHINGTON D.C. – A former deputy criminal chief has been recognized by the Secretary of Homeland Security for his work on a precedent-setting work visa case in Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Secretary of Homeland Security Jeh Charles Johnson recognized former Eastern District of Texas federal prosecutor Shamoil T. Shipchandler and his former investigative team at the DHS Secretary's Award Program on October 21, 2014, in Washington D.C. The recognition, in the form of the Secretary's Meritorious Service Award (Silver Medal), represents one of the highest awards for service granted by the Secretary of Homeland Security. The award honors exceptional individual leadership or service that is distinguished by achievements of marked significance over time to DHS, and recognizes a body of work characterized by superior performance related to significant accomplishments that significantly improved the effectiveness of DHS. In this case, the award was presented for investigating and bringing to justice an illegal visa fraud operation that resulted in the largest immigration fine to date.
In his prepared remarks to awardees, Secretary Johnson said, “It is no small task - but a great privilege - to select the best of the best for special recognition."
Shipchandler led a team consisting of HSI Supervisory Special Agent Brian Gray, DHS Special Agent Edward Koranda, DHS Auditor Christina Morales, DHS Attorney Judson Davis, and Department of State Special Agent Timothy Forte, in the investigation and settlement of claims against Infosys Corporation, an Indian company involved in consulting, technology, and outsourcing services. According to court documents, the government alleged instances of Infosys circumventing the requirements, limitations, and governmental oversight of the H-1B visa program by knowingly and unlawfully using B-1 visa holders to perform skilled labor in order to fill positions in the United States for employment that would otherwise be performed by United States citizens or require legitimate H-1B visa holders. The government also alleged that Infosys did so in order to increase profits, minimize costs of securing visas, increase flexibility of employee movement, obtain an unfair advantage over competitors and avoid tax liabilities.
The unique settlement in the case involved the payment by Infosys of $34 million, the largest payment ever levied in an immigration case. The agreement also required additional auditing for I-9 forms; a reporting requirement for B-1 usage; an agreement to continue to use only detailed invitation letters, and the continued use of corporate disciplinary processes for employees that violate the immigration laws of the United States.
“Infosys was a precedent-setting case,” said U.S. Attorney John M. Bales, “and the case was investigated and resolved in a precedent-setting district. Successful prosecutions are based on a team effort, and I am delighted that DHS has singled out the Infosys team for special recognition.”