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17 October 2014
Former Owners and Employees of Hampton Pipe and Tobacco ArrestedRead the Press Release
NEWPORT NEWS, Va. – The former owner of Hampton Pipe and Tobacco, Jayson Mickle, along with nine others, were arrested yesterday and charged in a multi-count indictment relating to the distribution of controlled substance analogues, aka “Spice,” among other charges.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C., made the announcement after initial court appearances took place in Norfolk, Virginia, before United States Magistrate Judge Tommy E. Miller. The defendants were all ordered held in custody pending a detention hearing in Newport News on October 20, 2014.
According to the indictment, the defendants ostensibly sold Blueberry Hedgehog, Cherry Hedgehog, Purp, Hampster Purp, Easta Pink and Yella to the public as “Aromatic Potpourri” and “Herbal Incense”, but they contained synthetic chemicals that mimic the effects of tetrahydrocannabinol (THC), the active ingredient in marijuana. The defendants intended each to be smokable products, and consequently were subject to Food and Drug Administration (FDA) laws and regulations. The FDA Office of Criminal Investigations considers these products as “street drug alternatives”, and as such, has concluded they pose a potential threat to public health.
The indictment includes the following charges, although individual defendant charges vary: Conspiracy to import and distribute controlled substance analogues (aka “Spice”), conspiracy to launder money, conspiracy to defraud the United States, distribution of controlled substance analogues, misbranding, mail fraud, importation of a controlled substance, smuggling goods into the United States, maintaining drug involved premises, possession of acetone with intent to manufacture a controlled substance, distribution of drug paraphernalia, use of a communication facility to commit a drug crime and money laundering. In addition to the criminal charges, the United States is seeking the forfeiture of 61 specific property items and a money judgment of nearly $13.15 million. According to the indictment, the charges arose from the individuals’ involvement with Hampton Pipe and Tobacco, a store formerly owned by Jayson Mickle, in the production and distribution of synthetic cannabinoids or “Spice”.
Jayson Mickle, 29, of Hampton, Virginia; Amanda Rowe, 30, of Hampton; Sandra Cooke, 52, of Hampton; Phillip Gibson, 45, of Hampton; Jake Pham, 29, of Newport News; David Jay Mickle, 52, of Hayes, Virginia; David Joseph Mickle, 31, of Hampton; Margaret Amber Phillips Cooper, 31, of Gloucester, Virginia; Jaime Wainwright, 24, of Hampton; Abigail Rose Phillips, 29 of Hampton; Christopher Ellis, 30, of Salt Lake City, Utah; and Justin Calderon, 32, of New York, New York; were charged in a multi-count indictment returned by a United States grand jury sitting in Newport News, Virginia.
Jayson Mickle, Rowe, Cooke, Gibson, Pham, David Jay Mickle, David Joseph Mickle, Margaret Amber Phillips Cooper, Jamie Wainwright, and Abigail Rose Phillips were arrested yesterday by federal, state and local law enforcement agents.
As the arrests were taking place, law enforcement agents also executed federal search warrants at Jayson Mickle’s home at 69 Chowning Drive in Hampton, and a business location associated with Angry Monkey Glass at 915 G Street in Hampton.
This investigation began more than two years ago in Gloucester County. The case was investigated by Homeland Security Investigations; FDA Office of Criminal Investigations; Gloucester County Sheriff’s Office; Internal Revenue Service – Criminal Investigations; U.S. Postal Inspection Service; Virginia State Police; Tri-Rivers and Peninsula Task Forces; U.S. Air Force Office of Special Investigations; Hampton Police Division; Newport News Police Department; U.S. Customs and Border Protection; Virginia Department of Emergency Services; Virginia Fusion Center; and the Virginia Marine Resources Police. Assistant U.S. Attorneys Eric M. Hurt and Kevin Hudson are prosecuting the case on behalf of the United States.
Indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the U.S. Attorney's Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:14-cr-00053.Tweet
Former Narragansett Couple Sentenced to Federal Prison in Drug Trafficking ConspiracyRead the Press Release
PROVIDENCE, R.I. – Damon Graham, 34, formerly of Narragansett, was sentenced today to 186 months in federal prison for trafficking cocaine and crack cocaine, and for being a felon in possession of firearms. His wife, Ashley Sekator-Graham, 31, was sentenced on August 14, 2014, to 48 months in federal prison for her role in the trafficking of cocaine and crack cocaine in South Kingstown and Narragansett.
The sentences, imposed by U.S. District Court Judge Mary M. Lisi, are announced by United States Attorney Peter F. Neronha, South Kingstown Police Chief Vincent Vespia, Jr., Narragansett Police Chief Dean F. Hoxsie and Michael Ferguson, Acting Special Agent in Charge of the DEA’s New England field division.
At sentencing, Damon Graham was also ordered to serve eight years supervised release upon completion of his prison term. He pleaded guilty on April 23, 2014, to one count each of possession with the intent to distribute 28 grams or more of crack cocaine, conspiracy to possess with the intent to distribute 28 grams or more of crack cocaine, possession with the intent to distribute cocaine, conspiracy to possess with the intent to distribute cocaine and two counts of being a felon in possession of a firearm.
Ashley Sekator-Graham pleaded guilty on April 16, 2014, to one count each of possession of crack cocaine with the intent to distribute and conspiracy to possess cocaine with the intent to distribute. At sentencing, Sekator-Graham was ordered to serve five years supervised release upon completion of her prison term.
According to court documents and information presented to the court, an investigation in July 2013 into the distribution of cocaine and crack cocaine in South Kingstown and Narragansett, including undercover drug purchases and electronic surveillance by law enforcement, resulted in the seizure of nearly 109 grams of crack cocaine, 200 grams of cocaine powder, two firearms, $93,701 in cash and the arrest on July 18, 2013, of Damon Graham and his wife Ashley Sekator-Graham.
According to court documents, the investigation and the execution of court authorized search warrants resulted in the seizure of nearly 109 grams of crack cocaine, a 9mm pistol, ammunition and $3,751 in cash from the couple’s Narragansett residence; 201 grams of cocaine, a .38 caliber revolver, hollow-point ammunition and a safe containing $89,950 in cash from a self-storage unit rented by the couple in Narragansett.
The cases were prosecuted by Assistant U.S. Attorney Pamela E. Chin, with the assistance of Assistant U.S. Attorney Paul F. Daly, Jr.
Rhode Island State Police and agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives assisted South Kingstown Police, Narragansett Police and the Rhode Island DEA Drug Task Force in the investigation of this matter.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Former Grandville Man Sentenced for Filing A False Tax ReturnRead the Press Release
GRAND RAPIDS, MICHIGAN – Jeffrey Roger Richter, a former resident of Grandville, Michigan, was sentenced to 30 months imprisonment followed by one year of supervised release for filing a false and fraudulent U.S. income tax return with the IRS, U.S. Attorney Patrick Miles announced today. In addition to the prison term, U.S. District Judge Robert Holmes Bell ordered Richter to pay $882,655.00 in restitution to the IRS. Richter pleaded guilty before Judge Bell on May 29, 2014.
U.S. Attorney Miles commented that: “Those who illegally fail to pay their fair share of taxes rob from all Americans. Their selfishness is unacceptable and deserves criminal prosecution and punishment. I am pleased with this sentence and restitution.”
According to court records, after graduating from Davenport College with an accounting degree, Richter was employed by John H. Dekker & Sons, Inc. Richter eventually became a part owner of Dekker & Sons, Inc. as well as Hi-Tec Building Services, Inc., a janitorial service. While at Dekker, Richter began using company credit cards for personal expenditures. Richter knowingly failed to report the income from the use of the corporate credit cards on his federal income tax returns for the 2007 through 2011 tax years. In total, for the years 2007 through 2011, Richter underreported his income by $995,436.07. By failing to accurately report all of his income, Richter avoided paying approximately $372,000 in personal income tax due and owing to the Internal Revenue Service.
“Richter chose to steal from his business as well as the American taxpayers by filing false income tax returns. IRS-CI’s primary enforcement program is, and will continue to be, directed at individuals like Richter who willfully violate the tax laws,” said Jarod Koopman, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation.
The case was investigated by special agents of the IRS Criminal Investigation Division and prosecuted by Assistant U.S. Attorney B. Rene Shekmer.
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Former Executive Director of Noah, Stacey Jackson, Sentenced to Five Years in PrisonRead the Press Release
U.S. Attorney Kenneth A. Polite announced that STACEY JACKSON, age 47, a resident of New Orleans, Louisiana, was sentenced today for her role in a conspiracy to steal federal funds and demand kickbacks from a program receiving federal funds.
U.S. District Judge Mary Ann Vial Lemmon sentenced JACKSON to 60 months imprisonment, followed by 3 years of supervised release. JACKSON was also ordered to pay over $424,000 in restitution to Housing and Urban Development (“HUD”) and to individual victims, as well as a $50,000 fine.
According to court documents, JACKSON, the former Executive Director of New Orleans Affordable Homeownership (“NOAH”), a city agency and non-profit corporation, conspired with EARL MYERS, TRELLIS SMITH, and others to misuse and personally benefit from federal funds that NOAH had received, in violation of the law. HUD both before and after Hurricane Katrina, had provided grant money to the City of New Orleans to address blight within the city and to remediate homes damaged by the storm.
JACKSON, as the Executive Director of NOAH, was responsible for the day-to-day management of the agency and determined how much each contractor would be paid. JACKSON arranged to overpay certain contractors, such as MYERS and SMITH, instructing them to kickback portions of the overpayments to JACKSON’S benefit.
Specifically, court documents state that on numerous occasions, JACKSON instructed MYERS and SMITH to pay her kickbacks out of the NOAH money she paid them for work that could not be substantiated by invoices or work actually performed. For example, in or near October 2005, JACKSON, wrote a check from NOAH to Parish Dubuclet, a company operated by her friend, SMITH, for approximately $15,260, which was deposited into a bank account belonging to Smith and Parish Dubuclet. On or about October 8, 2005, Parish Dubuclet wrote a check in the amount of $10,460 to JACKSON’S father, which was deposited into a bank account that JACKSON, controlled jointly with her father. Several days later, JACKSON used this money to write a check to a tree removal service to pay for the removal of a tree from her mother’s yard.
Court documents state that from in or near December of 2006 through in or near July of 2007, JACKSON contracted with MYERS to renovate properties that she owned, which were located on 6th Street and Danneel Street in New Orleans, Louisiana. JACKSON paid MYERS tens of thousands of dollars toward the renovation project and used public funds belonging to the United States and distributed to NOAH to pay MYERS a portion of the money she owed him for these renovations.
Documents in the court records also outline that on or about November 1, 2007, JACKSON wrote two checks to companies owned and operated by MYERS. One check was for $47,899.50 to MYERS & Sons. JACKSON instructed MYERS to give portions of this money to different entities, such as a school that JACKSON was affiliated with. The second check for $32,842.50 was payable to Excel Development, also owned and operated by MYERS. JACKSON directed MYERS to kickback a portion of this money to her by having him write two checks, one for $9,400 and one for $7,000 payable to Z.F., a person who JACKSON knew personally and to whose checking account she had access. MYERS complied with these instructions because he knew it would ensure that he would continue getting NOAH remediation work assignments from JACKSON.
Also according to court documents, on or around August 13, 14, and 15, 2008, after JACKSON became aware that MYERS had received a subpoena from a federal grand jury ordering him to turn over documents supporting the work he had done for NOAH, JACKSON provided false and fraudulent documents to MYERS in an effort to mislead the federal grand jury into finding that no fraud occurred at the defendant’s direction or while she was the Executive Director of NOAH.
“Stacey Jackson’s criminal conduct was particularly despicable, as it prevented our most disadvantaged residents from receiving much-needed assistance as they struggled to rebuild their lives following Hurricane Katrina,” stated U.S. Attorney Kenneth Polite. “Of course, our entire region suffers as well, as her corruption perpetuates entrenched stereotypes about our public officials and further erodes public trust in our government. The court appropriately imposed the statutory maximum sentence of 5 years in prison, along with full restitution to her victims and a significant fine.”
"In the aftermath of the convictions and sentencings of former Mayor Ray Nagin and Ms. Jackson, the FBI and its law enforcement partners will continue their tireless pursuit of all those who unlawfully financially capitalize upon the Katrina tragedy event as its 10-year anniversary nears,” stated Michael Anderson, Special Agent in Charge, Federal Bureau of Investigation, New Orleans Field Office.
IRS-Criminal Investigation Special Agent in Charge Gabriel L. Grchan said, "We are pleased with the announcement of today’s sentence. Ms. Jackson will now be held accountable for using a public trust position to bill the citizens of New Orleans for work that was never performed. This investigation is a prime example of how Special Agents of IRS Criminal Investigation work with the FBI and the United States Attorney's Office to bring individuals involved in fraud to justice. We will continue to work tirelessly with our law enforcement partners to stop those individuals who scheme and conspire with each other to benefit themselves to the detriment of other citizens and their government."“This sentencing was the result of outstanding investigative work conducted by HUD-OIG, and our law enforcement partners,” stated Wyatt J. Achord, Assistant Special Agent in Charge, U.S. Department of Housing and Urban Development-Office of Inspector General. “This collaborative effort sends a clear message that if someone steals from government subsidized programs, or intentionally misdirects funds for their personal gain, they will be prosecuted to the full extent of the law.”
“I am pleased that the New Orleans Office of Inspector General was able to assist our federal partners in gathering evidence for this prosecution,” said New Orleans IG Ed Quatrevaux.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation, the Department of Housing and Urban Development - Office of Inspector General, the Internal Revenue Service Criminal Investigation, and the City of New Orleans - Office of Inspector General. The U.S. Attorney’s Office would also like to acknowledge the assistance of the Metropolitan Crime Commission. Assistant U.S. Attorney and Senior Litigation Counsel Fred P. Harper, Jr. and Assistant U.S. Attorney Sharan Lieberman are in charge of the prosecution.
Former Chickasaw Country Club Clerk Indicted for FraudRead the Press Release
Memphis, TN – Sue M. Winfrey, age 58, of Memphis, TN, was indicted yesterday by a federal grand jury on charges of wire fraud, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.
The seven count indictment alleges that beginning in 2003 and continuing until August 2013, Winfrey, a former payroll clerk at Chickasaw Country Club, submitted fraudulent payroll data to Chickasaw’s payroll processor, Paychex of New York. The indictment alleges that as a result of the submission of the fraudulent payroll data, Winfrey unlawfully received approximately $736,000.00 which was deposited electronically into bank accounts she maintained at Bank of America.
Winfrey has been charged with seven counts of wire fraud. If convicted she faces up to 20 years in prison on each count and a fine of up to $250,000.00.
This investigation was conducted by the United States Secret Service. This case is being prosecuted for the government by Assistant United States Attorney Carroll L. Andre III.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Former Auburn City Clerk Sentenced for EmbezzlementRead the Press Release
TOPEKA, KAN. – The former city clerk of Auburn, Kan., was sentenced Friday to one year and a day in federal prison and ordered to pay more than $189,500 in restitution, U.S. Attorney Barry Grissom said.
Alice Riley, 61, Mayetta, Kan., pleaded guilty to one count of interstate transportation of stolen funds. In her plea she admitted the crime occurred beginning in 2009 while she was city clerk of Auburn, Kan., a town of 1,200 in Shawnee County. She issued duplicate payroll checks to herself and other unauthorized checks which she deposited into her personal accounts. She covered up the embezzlement by creating false entries in the city’s books and bank statements.
Grissom commended the FBI investigated and Assistant U.S. Attorney Richard Hathaway is prosecuting.Fayetteville, Illinois Woman Sentenced for Theft of Social Security Survivor BenefitsRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that Amber Dawn Adams, 34, of Fayetteville, Illinois, was sentenced today on an indictment charging that she committed theft of government funds. The district court sentenced Adams to three years of probation. Adams was also ordered to pay $9,059.00 in restitution back to the Social Security Administration and a $100 special assessment.
During her plea of guilty on July 1, 2014, Adams admitted that between March 2008 and August 2012, she was falsely claiming and receiving more than $9,000 in Title II – Survivor Benefits that were intended for the benefit of her child, when, in fact, the child did not live with her and Adams did not support the child between March 2008 and August 2012.
This is one of several fraud prosecutions on behalf of the Social Security Administration. On July 1, 2014, United States Attorney Stephen R. Wigginton said: “These cases are yet additional examples of the wide-spread fraud that plagues both state and federal programs that are in place to help those in our society who need that help the most. My office will continue to stand beside both federal and state agencies in taking every step necessary to find and prosecute those who steal from, and continue to defraud these vital programs. This is a theft from not only the needy, but from all of us.”
The investigation was conducted by the Social Security Administration, Office of Inspector General. The case was prosecuted by Assistant United States Attorney Ranley R. Killian.
Essex County, N.J., Man Sentenced to 70 Months in Prison for Being A Felon in Possession of A FirearmRead the Press Release
NEWARK, N.J. - An Essex County, N.J., man with a felony criminal record was sentenced today to 70 months in prison for carrying a loaded semi-automatic pistol, U.S. Attorney Paul J. Fishman announced.
Victor Lopez, 25, of Newark, was previously convicted of one count of being a felon in possession of a firearm following a three-day trial, in which the jury deliberated for four hours before returning the guilty verdict. U.S. District Judge Anne E. Thompson imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
Officers of the City of Passaic Police Department responded to a 911 call on Sept. 13, 2012, about a possible burglary in progress at an apartment building in Passaic, N.J., where they encountered Lopez leaving the building.
Officers stopped Lopez, who appeared nervous, and found a gun in his back pocket. The .380 caliber semi-automatic handgun was loaded with seven bullets, including one in the chamber. Four of the bullets were hollow-point rounds.
In addition to the prison term, Judge Thompson sentenced Lopez to three years of supervised released.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge George Belsky, and officers of the City of Passaic Police Department, under the direction of Deputy Chief Rosario J. Capuana, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Sara F. Merin and Jonathan W. Romankow of the U.S. Attorney's Office Criminal Division in Newark.
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Defense counsel: Edward Washburne, Esq., Red Bank, N.J.
East St. Louis Man Sentenced to Nearly Eleven Years in Prison for Crack Cocaine OffenseRead the Press Release
Follow @SDILNewsAn East St. Louis man, convicted of possession of a controlled substance with intent to deliver, was sentenced to 130 months in federal prison on October 17, 2014, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Edward A. Banks, 42, of East St. Louis, Ill., received the 130 month sentence for possession of crack cocaine with intent to deliver. Following release from imprisonment, Banks will serve five years of supervised release. Banks pleaded guilty to the charges on July 9, 2014.
This case was investigated by the Metropolitan Enforcement Group of Southwestern Illinois (MEGSI) as part of its Operation Wild Wild East and prosecuted by Assistant United States Attorney Laura Reppert and Special Assistant United States Attorney Neal Hong.
East St. Louis Man Pleads Guilty to Firearm OffenseRead the Press Release
Follow @SDILNewsOn October 17, 2014, William Moore, a thirty year old East St. Louis man, pled guilty in Federal District Court, in East St. Louis, to Unlawful Possession of a Firearm by a Previously Convicted Felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Moore is scheduled for sentencing on January 29, 2015, at which at which time he faces a maximum potential sentence of ten years in prison and a fine of up to $250,000, not more than three years of supervised release after his prison term, and a mandatory special assessment of $100. Moore also agreed to the forfeiture of the two firearms involved in the offense. Court proceedings revealed that on December 30, 2013, United States Marshals executed a search warrant at Moore’s residence and located a Mossberg shotgun and a Colt revolver.
This case was investigated by the East St. Louis Police Department and the United States Marshals Service, and assigned to Assistant United States Attorney Steve B. Clark and Special Assistant United States Attorney Michael Hallock for prosecution.
Dundalk Man Sentenced to over 5 Years in Prison in Scheme to Burn Down House to Collect InsuranceRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Hassan Hammoud, age 60, of Dundalk, Maryland, today to 63 months in prison, followed by three years of supervised release, for conspiring to destroy a conspirator’s Maryland home by fire to collect $3 million in insurance proceeds. Judge Bennett entered an order requiring Hammoud to pay restitution of $828,773.
The sentence 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 James W. Johnson of the Baltimore County Police Department; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to his plea agreement, co-conspirator Saleh Fakhoury owned a home in Lutherville Maryland. Hammoud worked for Fakhoury at Alfeo’s, a pizza restaurant owned by Fakhoury. In 2007, Fakhoury bought a second home in Florida. By March 2009, Fakhoury owed over $200,000 to credit card companies, utilities and other service providers, as well as over $1.7 million to banks for the mortgages on the properties he owned.Fakhoury and Hammoud schemed to destroy Fakhoury’s home in Lutherville by arson. Fakhoury intended to collect the insurance and pay off his debts. Fakhoury agreed to pay Hammoud $20,000 to set his home on fire. The two agreed that when the insurance company paid Fakhoury, Fakhoury would pay $50,000 for having his house set on fire, and the money would be sent overseas. Hammoud purportedly hired others to set the fire.
On March 12 or 13, 2009, a fire was deliberately set at the Lutherville home. The fire self-extinguished and minimal damage was sustained. On March 14, 2009, a second fire was deliberately set using paint thinner. The home was completely destroyed. Fakhoury paid Hammoud the agreed upon $20,000 to have the house set on fire.
In September 2009, Fakhoury executed a sworn proof of loss to collect $3,155,197 in insurance. The loss statement was false, in that it claimed items were destroyed or damaged in the fire when, in fact, the items were not consumed in the fire, and the fire was intentionally set. The insurance company denied the claim but paid $828,773 to the mortgagor of the Maryland home. On December 2, 2011, Fakhoury filed a civil action against the insurance company in an effort to recover monies under the insurance policy, and claim over $3 million in compensatory damages.
Saleh H. Fakhoury, age 49, formerly of Lutherville, Maryland, previously pleaded guilty to his participation in the conspiracy and is scheduled to be sentenced on January 7, 2015 at 10:00 a.m. As part of his plea agreement, Fakhoury has agreed to dismiss the civil lawsuit he filed.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore County Police Department and IRS - Criminal Investigation for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Sandra Wilkinson and Judson T. Mihok, who prosecuted the case.
Dontre Mchenry Pleads Guilty to Sex Trafficking Teenage Girls Throughout MinnesotaRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of DONTRE D’SEAN MCHENRY, a/k/a “Dontre Sean McHenry,” a/k/a “Avon,” a/k/a “Rico,” 25, for recruiting and sex trafficking teenage girls throughout Minnesota. MCHENRY pleaded guilty today to sex trafficking of a minor before Judge David S. Doty in United States District Court in Minneapolis. The defendant is expected to be sentenced at a future court appearance.
Minneapolis Police Chief Janee Harteau said: “Dontre McHenry has been transforming vulnerable girls into products for sale for years. This vile and horrific behavior will not be tolerated and we are determined to track down these people and bring them to justice. The Minneapolis Police Department, along with our law enforcement partners, is committed to protecting our youth. Our thanks go out to the police departments from the cities of Roseville, St. Paul, and Rochester, along with the Homeland Security Investigators who worked so closely with us on this case, along with U.S. Attorney Andrew Luger, for his tenacity in charging cases like this.”
Special Agent in Charge of HSI St. Paul J. Michael Netherland said: "Sex traffickers are constantly on the hunt for vulnerable children they can exploit for their financial gain, which is a heartless crime. It is imperative for law enforcement to protect those who cannot protect themselves. HSI will continue to work in tandem with our law enforcement partners to identify, investigate, and assist in the prosecution of individuals who have exploited children."
Assistant U.S. Attorney Laura Provinzino, who is in charge of human trafficking prosecutions, said: “Sex trafficking of girls is a very real problem in Minnesota. We will continue to be aggressive in the prosecution of these cases to protect our young people from the manipulation and violence that causes them to be sold for sex. Today, Dontre McHenry is being held accountable for his role in recruiting and trafficking the most vulnerable girls in our state – runaways, recent immigrants, and girls in foster care. Protecting our children from violent and manipulative predators like this defendant is a central mission for the U.S. Attorney’s Office and for our law enforcement partners.”
According to the defendant’s guilty plea and documents filed in court, from at least January 2013 until March 2014, MCHENRY recruited at least three girls under the age of 18 and prostituted them for his own financial benefit. MCHENRY advertised girls on backpage.com and in chatrooms, and made a sexually-explicit video of a 15-year-old victim, which was sent out to prospective “johns.” MCHENRY directed the victims about how to talk to men on chat lines, what rates to charge for various sex acts, and how to set up “dates.” The victims were instructed to, and did, give all of the money they were paid for sex acts to the defendant.
According to documents filed in court, on March 13, 2014, Minneapolis police executed a search warrant at a motel room in Roseville, Minnesota, which was previously occupied by MCHENRY and victims. During the search, investigators discovered, among other evidence, handwritten notes and a book entitled “Pimpology: The 48 Laws of the Game.” The handwritten notes included references to trafficking and prostitution, as well as questions that referred to recruiting and coercing minors. MCHENRY also had photos on his cellphone of two victims in their underwear, as well as numerous text message conversations from customers arranging to meet with victims to purchase sex.
This case is the result of an investigation conducted by Homeland Security Investigations, the Minneapolis Police Department, the St. Paul Police Department, the Rochester Police Department, and the Roseville Police Department.
Assistant U.S. Attorneys Laura M. Provinzino and Melinda A. Williams are prosecuting the case.
Defendant Information: DONTRE D’SEAN MCHENRY, a/k/a “Dontre Sean McHenry,” a/k/a “Avon,” a/k/a “Rico,” 25
St. Paul, Minn.
Convicted: • Sex Trafficking of a Minor, 1 count###
Donahoo Sentenced to 48 Months in Federal Prison After Pleading Guilty to Wire Fraud, Money Laundering, and Failure to File Tax Return in Investment Scheme;Read the Press Release
Ordered To Pay Restitution Of $2,739,501.17 To VictimsSALT LAKE CITY - James Ronald Donahoo, II, age 36, of Pleasant Grove, who pled guilty to wire fraud, money laundering, and failure to file a tax return in June, will serve 48 months in federal prison. U.S. District Judge Dee Benson imposed the sentenced Thursday afternoon in U.S. District Court in Salt Lake City.
Donahoo must serve three years of supervised release after he finishes his federal prison sentence and pay $2,739,501.17 in restitution to victims of the fraud. A forfeiture money judgment has been entered in the same amount.
Donahoo’s convictions stem from a scheme to defraud individuals and companies he recruited to invest in Paradigm Investing, Inc., a Utah corporation he exercised control over.
As a part of the plea agreement, Donahoo admitted that he misrepresented to investors that if they would invest in Paradigm, they would make a 1 to 3 percent return on their investment, which would be paid out monthly. Paradigm never earned any revenues on any of its purported investments from which interest payments could have been made.
Donahoo admitted he told investors that Paradigm was in the business of making bridge loans or “hard money loans” to small businesses. According to the plea agreement, Paradigm did invest approximately $1.5 million in various businesses. However, the investments were not in bridge loans or hard money loans at Paradigm’s investors were told. Instead, businesses that received money were run by Donahoo’s friends, associates, or family members.
He created false bank statements for Paradigm that he showed to investors to convince them that the investment was safe, low risk, and a good investment. He also told investors that the risk was mitigated by the fact that for every dollar invested, he had a dollar in the bank.
Donahoo made payments to investors totaling more than $267,000 out of investor funds in furtherance of what was a Ponzi scheme.
Donahoo admitted that on or about Dec. 5, 2008, he caused two investors to send a $100,000 wire transfer from California to Utah as an investment in Paradigm. On about December 11, 2008, he purchased fur coats in Park City in excess of $10,000. He admitted in the plea agreement that he knew this transaction involved money obtained from his criminal scheme.
He also admitted that he did not file a tax return for 2008, even though he transferred funds from the Paradigm bank account to his personal bank account totaling $335,000. He used those funds for personal purposes.
The case was investigated by special agents of IRS-Criminal Investigation and prosecuted by the U.S. Attorney’s Office in Salt Lake City.
Deli Shop Operator Pleads Guilty to Food Stamp FraudRead the Press Release
Buffalo, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Yousef Yafai, 31 of Buffalo, NY, pleaded guilty before U.S. District Court Judge Richard J. Arcara, to unauthorized acquisition of food stamp benefits. The charge carries a maximum penalty of 20 years in prison, a fine of $250,000or both.
Assistant U.S. Attorney Michael DiGiacomo, who is handling the case, stated that the defendant operated a deli shop known as Hollywood Nights Prime Shop on Jefferson Avenue in Buffalo. Between October 2008 and January 2011, Yafai knowingly purchased, from food stamp recipients, food stamp benefits in exchange for cash at less than their full value.
Sentencing is scheduled for February 17, 2015 at 1:00 p.m. before Judge Arcara.
The plea was the culmination of an investigation on the part of Special Agents of the United States Department of Agriculture, Office of Inspector General, under the direction of William G. Squires Jr., Special Agent in Charge, Northeast Region.Davenport Man Sentenced on Federal Marijuana ConspiracyRead the Press Release
DAVENPORT, IA – On October 17, 2014, Edwin James Goodwin, age 36, of Davenport, Iowa, was sentenced by United States District Judge Stephanie M. Rose to 60 months imprisonment for conspiracy to distribute at least 100 kilograms of marijuana, announced United States Attorney Nicholas A. Klinefeldt. Goodwin was also ordered to serve four years of supervised release following the imprisonment and to pay $100 towards the Crime Victims Fund.
Beginning in approximately July 2008 and continuing until about July 31, 2012, Goodwin conspired with other persons to distribute marijuana in the Davenport, Iowa, area. Specifically, during the above-mentioned time period Goodwin regularly sold multiple pound quantities of marijuana directly to his co-defendant Marqueis Letrell Lewis and other persons in Davenport for further distributions to various customers in the Davenport area. Over the course of the conspiracy Goodwin distributed over 700 kilograms of marijuana. Lewis pled guilty to conspiracy to distribute at least 100 kilograms of marijuana and was sentenced by Judge Rose in January 2014 to 113 months imprisonment. Goodwin also forfeited $58,433.27 to the government as proceeds derived from Goodwin’s drug trafficking activities.
This case was investigated by the Davenport, Iowa, Police Department, the Iowa Department of Narcotics Enforcement, and the United States Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release)
Cuban Sentenced for Illegal Re-entryRead the Press Release
ALBANY, NEW YORK – Rafael Cantin-Echevarria, 36, a citizen of Cuba who had been living in Stafford, Virginia, was sentenced on October 15, 2014 to serve 70 months in prison followed by two years of supervised release for illegally reentering the United States following removal by Senior United States District Court Judge Lawrence E. Kahn announced United States Attorney Richard S. Hartunian and Patrol Agent in Charge Norman Lague of United States Border Patrol, Champlain Station. Cantin-Echevarria had pled guilty in June. Following the completion of the term of imprisonment, the Department of Homeland Security will process Cantin-Echevarria for removal from the United States.
In May 2014, United States Border Patrol agents arrested Cantin-Echevarria after he was found hiding in the woods south of the border near Champlain, New York. In September 2006, an immigration judge had ordered that Cantin-Echevarria be removed from the United States, but he remained in the country until March 2014 when he went to Canada.
The case was investigated by the United States Border Patrol, Champlain, NY, and prosecuted by Assistant United States Attorney Edward Grogan.
Computer Hacker Sentenced for Emailing Bomb Threat to Shopping MallRead the Press Release
PHILADELPHIA - David Barnhouse, 24, of Horsham, PA, was sentenced, on October 16, 2014, to 18 months in prison for hacking into his neighbor’s wireless router and using it to post a bomb threat on the website of the Willow Grove Park Mall. As a result of Barnhouse’s actions, the mall paid for increased security and the FBI, after tracing the threat to the neighbor’s router, executed a search warrant on the neighbor’s home. (The practice of making such false reports to bring police action against someone’s house is colloquially known as “swatting” – after the SWAT teams that law enforcement often uses to deal with such situations.)
On June 20, 2013, Barnhouse hacked into the Verizon FiOS router of his neighbor and, using their Internet service, posted the following message:
“We have planted an explosive device somewhere in the mall, and will detonate it unless all members of the Islamic faith imprisoned in the United States are freed by 7pm on June 23. Even if you search the mall for 72 consecutive hours, you will NEVER find it.”
In addition to the prison term, U.S. District Court Judge C. Darnell Jones, II ordered three years of supervised release and restitution to the mall for the costs of the increased security.
The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorneys Jeanine Linehan and Michael L. Levy.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Co-Conspirators Plead Guilty to Bribery Scheme in White Plains Federal CourtRead the Press Release
Preet Bharara, the U.S. Attorney for the Southern District of New York , Leslie R. Caldwell, the Assistant Attorney General of the Justice Department’s Criminal Division, and Michael E. Horowitz, the Justice Department Inspector General, announced that JOHANNES THALER, and RIZVE AHMED, a/k/a “Caesar,” a native of Bangladesh and co-conspirator of THALER, pled guilty today in White Plains federal court to bribery and conspiracy to commit honest services and wire fraud before U.S. District Judge Vincent L. Briccetti.
According to the Complaint, the Indictment, court hearings, and today’s plea proceeding:
Both THALER and AHMED admitted to participating in a bribery scheme with Robert Lustyik, a former FBI Special Agent in White Plains, whereby Lustyik sold confidential, internal law enforcement information to AHMED in exchange for cash.
Lustyik was an FBI Special Agent who worked on the counterintelligence squad in the White Plains Resident Agency. THALER was Lustyik’s friend, and AHMED was an acquaintance of THALER.
From about September 2011 through March 2012, Lustyik and THALER solicited payments of money from AHMED, in exchange for Lustyik’s agreement to provide internal, confidential documents and other confidential information to which Lustyik had access by virtue of his position as an FBI Special Agent. AHMED was a native of Bangladesh who sought confidential law enforcement information, including a Suspicious Activity Report, pertaining to a prominent Bangladeshi political figure who was affiliated with a political party opposing AHMED’s views (“Individual 1”). AHMED sought, among other things, to obtain information about Individual 1, to locate Individual 1, and to harm Individual 1 and others associated with Individual 1.
As part of the scheme, THALER and AHMED exchanged text messages, including text messages about a “contract” the terms of which would require AHMED to pay a $40,000 “retainer” and $30,000 “monthly” and, in return, Lustyik and THALER would “give [AHMED] everything [they] ha[d] plus set up [Individual 1] and get the inside from the party.”
Lustyik and THALER also exchanged text messages about how to pressure AHMED to pay them additional money in exchange for confidential information. For example, in text messages, Lustyik told THALER, “we need to push [AHMED] for this meeting and get that 40 gs quick . . . . I will talk us into getting the cash . . . . I will work my magic . . . . We r sooooooo close.” THALER responded, “I know. It’s all right there in front of us. Pretty soon we’ll be having lunch in our oceanfront restaurant . . . .”
As another example, in or about late January 2012, Lustyik, upon learning that AHMED was considering using a different source to obtain confidential information about Individual 1, texted THALER, “I want to kill [AHMED] . . . . I hung my ass out the window n we got nothing? . . . . Tell [AHMED], I’ve got [Individual 1’s] number and I’m pissed. . . . I will put a wire on n get [AHMED and his associates] to admit they want [a Bangladeshi political figure] offed n we sell it to Individual 1].” Lustyik further texted THALER, “So bottom line. I need ten gs asap. We gotta squeeze C.”
Lustyik and THALER accepted at least $1,000 from AHMED in exchange for the confidential FBI information, including a Suspicious Activity Report. Lustyik and THALER schemed to obtain additional monthly cash bribes from AHMED, in increments of tens of thousands of dollars, in exchange for additional confidential law enforcement information about Individual 1 and for assistance in having criminal charges against a Bangladeshi political figure dismissed.
THALER, 51, of New Fairfield, Connecticut, pled guilty to one count of bribery and one count of conspiracy to commit honest services and wire fraud. He faces a maximum sentence of 35 years in prison. THALER is scheduled to be sentenced by Judge Briccetti at 11:30 a.m. on January 23, 2015.
AHMED, 35, of Danbury, Connecticut, pled guilty to one count of bribery and one count of conspiracy to commit honest services and wire fraud. He faces a maximum sentence of 35 years in prison. AHMED is scheduled to be sentenced by Judge Briccetti at 2:30 p.m. on January 23, 2015.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Charges against Lustyik, the other defendant who was charged with THALER and AHMED, remain pending. These charges are merely accusations, and the defendant is presumed innocent unless and until proven guilty. Trial is scheduled to begin on November 17, 2014.
This case was investigated by the Department of Justice Office of the Inspector General. The case is being prosecuted by Trial Attorney Emily Rae Woods of the Justice Department’s Public Integrity Section and Assistant U.S. Attorney Benjamin Allee of the White Plains Division of the U.S. Attorney’s Office for the Southern District of New York.
Lustyik Et Al.Indictment
LustyikEtAlComplaint signed (2)
Chicago Investment Advisor Convicted of Defrauding Suburban Bank and Two Clients of More Than $3.2 MillionRead the Press Release
CHICAGO ― A Chicago investment advisor was convicted today of federal bank fraud charges for engaging in a scheme to defraud Oak Brook-based Leaders Bank and two of his clients of more than $3.2 million and ultimately causing the bank to lose more than $2.7 million. The defendant, ROBERT J. LUNN, was found guilty of five counts of bank fraud by a federal jury that began deliberating yesterday following a trial that began Oct. 7.
Lunn, 64, of Chicago, who did business as Lunn Partners, LLC, an investment advisory business, remains free on bond pending sentencing, which was set for Jan. 21, 2015, by U.S. District Judge Charles Norgle. Lunn faces a maximum sentence of 30 years in prison and a $1 million fine on each count, or an alternate fine totaling twice the fraud loss or twice the gain, whichever is greater, as well as mandatory restitution. The court may also order forfeiture of any fraud proceeds.
According to the evidence at trial, Lunn fraudulently obtained a $1.32 million line of credit from the bank for his business, as well as separate loans of $1.4 million and $500,000 purportedly on behalf of two clients. Lunn made a series of misrepresentations to Leaders Bank about his own assets, the purpose of the loans, and the knowing authorization of clients purportedly seeking the financing. Instead, Lunn used substantially all of the fraudulently obtained funds for his own benefit, including mortgage payments and approximately $1.4 million in payments to other investment clients.
Lunn initially obtained a business line of credit from Leaders Bank for $480,000 in May 2001. He increased the credit line twice in early 2004, first to $1.2 million and later to $1.32 million, all after he submitted personal financial statements to the bank falsely stating that he owned millions of dollars of stock in Morgan Stanley and Lehman Brothers. In September 2002, Lunn arranged for an unsecured bank loan of $1.4 million, purportedly for the benefit of former Chicago Bulls star Scottie Pippen, a client at the time, after falsely representing the proceeds of the loan would be used by Pippen to finance the purchase of an interest in an airplane. In June 2004, Lunn arranged a bank loan for $500,000 for the benefit of another former client, Robert Geras, a retired venture capitalist, without Geras’ knowledge or authorization, after submitting a net worth report for Geras and stating that Geras wanted short-term financing for a business investment.
The guilty verdict was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. They thanked the U.S. Securities and Exchange Commission’s Chicago Regional Office for its cooperation and participation in the prosecution.
The government is being represented by Assistant U.S. Attorney Kenneth Yeadon and Special Assistant U.S. Attorney Rich Stoltz, a senior attorney with the SEC.
Chase Banker Convicted of Bribery Admits Taking Hundreds of Thousands of Dollars in Return for Selling Loans on Secondary Mortgage MarketRead the Press Release
SAN DIEGO – Lynda Sanabria, a J.P. Morgan Chase banker, admitted in federal court today to receiving more than $200,000 in bribe payments related to Chase’s sale of mortgages on the secondary market. As detailed in her guilty plea, Sanabria used her position and influence at Chase to ensure that her preferred customers won their bids to purchase mortgage notes. Sanabria received these bribe payments from San Diego businessman Israel Hechter, who pleaded guilty in September and admitted paying a total of $1 million in bribes to Sanabria and others.
As detailed in Court documents, Sanabria began accepting bribes from Hechter and his associates as early as 2004, when Hechter offered to pay her on the side in return for providing inside information on loans that Chase was putting up for sale. Around 2004, he arranged to make a $70,000 payment to Sanabria, which Sanabria used to purchase property near Lake Havasu, Arizona. In addition, Hechter would provide the former Chase banker with a fixed payment (up to around $300) for each loan on which he bid. Pursuant to this arrangement, Sanabria provided Hechter with details about his competitors’ bids, which helped to ensure that Hechter was the winning bidder.
By 2008, Hechter stopped reporting the illegal payments to the Internal Revenue Service, and Sanabria stopped paying taxes on the illegal income. As noted in Sanabria’s guilty plea, Hechter later referred to the payments as birthday gifts or consulting fees, in order to disguise the fact that he was paying for influence over her decisions at Chase.
Hechter, the owner of San Diego-based mortgage investment firms Ocean 18, LLC, and Note Tracker Corporation, admitted as part of his guilty plea that he paid a million dollars in bribes to Sanabria and other bankers at GMAC and National City Bank. In order to make sure that Hechter’s bids were successful, the bankers corrupted the process by altering bids, rejecting other bids, and erasing or ignoring bids from qualified competitors. The bankers also rigged the bidding process by supplying Hechter with confidential information about prices and competing bids.
Robert Moreno, of GMAC, was one of the other bankers to receive bribes from Israel Hechter. Last week, Moreno pleaded guilty, and admitted that he accepted more than $1 million in bribes from Hechter and from other GMAC customers.
After purchasing the mortgages from the various financial institutions, Hechter pooled the loans and sold shares of the pools to investors, usually friends and family members including his father, Zeev Hechter, his brother, Amir Hechter, and his employee, Jack Prober, each of whom also invested in the pools. After purchasing the loans, Ocean 18, LLC would service them and collect monthly payments from the borrowers, or would initiate foreclosure proceedings when the borrowers defaulted. The investors made money when borrowers made payments, sold the properties, or after foreclosure and re-sale.
“When bankers accept bribes, the real losers here are businesses who play by the rules, and our nation’s financial system, which is diminished with every one of these schemes,” said U.S. Attorney Laura Duffy. “We will continue to prosecute insiders who exploit their positions for personal gain.”
FBI Special Agent in Charge Eric S. Birnbaum commented, “By pleading guilty, Ms. Sanabria admitted corrupting the process and denying other businesses the opportunity to obtain valuable contracts. The FBI and our law enforcement partners are committed to pursuing anyone who illegally lines his or her own pockets at the expense of the public good."
Sanabria entered her guilty plea today before U.S. Magistrate Judge Bernard G. Skomal. Sanabria is scheduled to be sentenced by U.S. District Judge Roger T. Benitez on January 19, 2015, at 9 a.m.
Israel Hechter, Zeev Hechter, Amir Hechter, and Prober each pleaded guilty in September to participating in the conspiracy and making hidden payments to Sanabria, Moreno, or others. They are all scheduled to be sentenced on January 5, 2014, at 9:00 am. Moreno pleaded guilty to the same offense, and is scheduled to be sentenced on January 19, 2014, at 9:00 am. Each of these defendants will also be sentenced by Judge Benitez.
The swift resolution of these bribery and tax charges was the result of coordinated investigations by the Federal Bureau of Investigation, the Federal Housing Finance Agency – Office of Inspector General, and Internal Revenue Service, Criminal Investigation.
DEFENDANT PLEADING GUILTY Case Number: 14CR-2980-BEN Lynda Sanabria Age: 51 Rockwall, TX DEFENDANTS PREVIOUSLY CHARGED Israel Hechter, 14CR2703-BEN Age: 47 San Diego, CA Amir Hechter, 14CR2701-BEN Age: 42 San Diego, CA Jack Prober, 14CR2704-BEN Age: 56 La Jolla, CA Zeev Hechter, 14CR2702-BEN Age: 68 Aventura, FL Robert Moreno, 14CR2277-BEN Age: 42 Tempe, AZ CHARGESConspiracy to commit bank bribery and tax evasion, in violation of 18 U.S.C. § 371.
INVESTIGATING AGENCY
Maximum Penalties: 5 years’ imprisonment, $250,000 fine or twice the pecuniary gain or loss resulting from the offense, $100 special assessment, restitution.Federal Bureau of Investigation
Federal Housing Finance Agency – Office of Inspector General
Internal Revenue Service, Criminal InvestigationCalifornia Woman Charged with Possessing Cell Phone Spyware and Using It to Intercept CommunicationsRead the Press Release
SAN JOSE – Kristin Nyunt was charged by information today with two counts of illegal wiretapping and the possession of illegal interception devices, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
According to the information, from 2010 to 2012, Nyunt, 40, most recently of Monterey Calif., is alleged to have intercepted communications, including sensitive law enforcement communications, by means that included “spy software” that the defendant secretly installed on the mobile phone of a police officer. The information also alleges that during the same period she illegally possessed interception devices, namely spy software including Mobistealth, StealthGenie, and mSpy, knowing that the design of those products renders them primarily useful for the purpose of the surreptitious interception of wire, oral, and electronic communications.
Previously, on Sept. 29, 2014, the Department of Justice announced the indictment of Hammad Akbar, 31, of Lahore, Pakistan, the chief executive officer of InvoCode Pvt Ltd, the company that advertises and sells StealthGenie online. Akbar and his co-conspirators allegedly created the spyware, which could intercept communications to and from mobile phones, including Apple’s iPhone, Google’s Android, and Blackberry Limited’s Blackberry.
Nyunt’s initial appearance is scheduled for October 23, 2014, at 1:30 p.m. before the Honorable Howard R. Lloyd, Magistrate Court Judge, in San Jose.
An information merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of five years and a fine of $250,000 for each violation of Title 18, United States Code, Sections 2511(1)(a) (Interception of Communications) and 2512(1)(b) (Possession of Interception Device Transported in Interstate Commerce). However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Philip A. Guentert is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Elise Etter. The prosecution is the result of an investigation by the FBI and the Monterey County District Attorney’s Office.
(Nyunt information )
Boston Man, Maximo Stiven Bernabel-pena, Pleads Guilty to Drug Charges Incurred During Hammond Traffic StopRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MAXIMO STIVEN BERNABEL-PENA, age 24, a resident of Boston, Massachusetts, pled guilty today to an indictment charging him with possession and possession with intent to distribute 5 kilograms or more of cocaine hydrochloride. This defendant also pled guilty to drug conspiracy charges returned in the Northern District of Georgia. Under special procedures, BERNABEL-PENA pled guilty to this District’s charge as well as the Northern District of Georgia’s charge in Federal District Court in Atlanta today.
According to the indictment, on April 8, 2013, Troopers of the Louisiana State Police (LSP) Troop L Uniform Patrol Division, conducted a traffic stop in Hammond, Tangipahoa Parish, Louisiana, on Interstate 12 eastbound on a 2011 Dodge Caliber vehicle bearing a Florida license plate. The stop was based on a traffic violation. State Troopers identified the driver and sole occupant of the vehicle as BERNABEL-PENA.
Shortly after the traffic stop, State Troopers deployed a trained and qualified K-9 drug detection dog, and the dog performed a free air sniff test on the exterior of BERNABEL-PENA’s vehicle. The K-9 alerted to the presence of narcotics in the vehicle. A subsequent search of the vehicle resulted in the discovery of approximately 6.48 kilograms of a white powdery substance that tested positive for the presence of cocaine in a hidden compartment found beneath the flooring of the vehicle.
LSP troopers also seized $2,921 in U.S. currency from BERNABEL-PENA’s personal effects and this money was the proceeds of illegal drug activity by the defendant.
The Northern District of Georgia indicted twelve members of a national cocaine trafficking organization that included BERNABEL-PENA, charging a large-scale drug conspiracy investigated as an Organized Crime Drug Enforcement Task Force (OCDETF) case, code-named “Operation Holy Trap.” The investigation, lasting 18 months, involved drug activity in Georgia, Florida, Massachusetts, Texas, and Louisiana.
The organization is alleged to have been overseen by Edwin Rivera, a/k/a Neno, a/k/a Nano (“Rivera”), a Boston-based drug dealer. To date, investigators have seized over 70 kilograms of cocaine and approximately $1,000,000 in drug proceeds.
The Eastern District of Louisiana component of the investigation was led by the Department of Homeland Security (Border Enforcement Security Task Force, BEST, New Orleans) with the assistance of the Louisiana State Police, Troop L Uniform Patrol Division.
The Atlanta investigation component of this case was led by FBI agents from the David G. Wilhelm OCDETF-Atlanta Strike Force, which consists of federal, state, and local drug officers and focuses on dismantling international drug organizations operating in the United States. The investigation also included participation from the Strike Force members: the Drug Enforcement Administration (DEA), the United States Marshals Service, the Department of Homeland Security, the Internal Revenue Service-Criminal Investigation (IRS), the Georgia Bureau of Investigation (GBI), Lawrenceville Police, Gwinnett County Sheriff’s Office, Clayton County Police, and Barrow County Sheriff’s Office.
On both District’s charges, BERNABEL-PENA faces a minimum term of imprisonment of ten years, a maximum term of imprisonment of life, a maximum fine of $10,000,000, at least five years of supervised release after imprisonment, and a $100 special assessment.
“The distribution of dangerous illegal drugs reflects a callous disregard for public safety,” said Raymond R. Parmer, Jr., special agent in charge of DHS/HSI New Orleans. “This criminal seriously underestimated the dedication of DHS/HSI and its federal, state and local law enforcement partners to investigate and seek prosecution of dangerous individuals who threaten the safety of our law-abiding communities.” Parmer oversees a five-state area of responsibility including Louisiana, Mississippi, Alabama, Arkansas and Tennessee.
U.S. Attorney Polite praised the work of all agencies including the Department of Homeland Security Offices in the Eastern District of Louisiana in investigating this matter. Assistant United States Attorney John F. Murphy is in charge of the prosecution.
(Download Factual Basis )
Belleville Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
Follow @SDILNewsWillie L. Carroll, Jr., a 50-year old, Belleville, Illinois, man was sentenced on October 17, 2014, in federal district court in East St. Louis, Illinois, for failure to register as a sex offender, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Carroll was sentenced to 13 months’ in prison; 5 years’ supervised release, fined $250 and ordered to pay $150 special assessment.
A compliance check conducted at his mother’s residence by law enforcement officials on June 26, 2013, revealed that he had not stayed there consistently since February 2013, and that he had been living with his fiancé in Missouri. Carroll moved to Missouri, after signing the Illinois Sex Offender Registration Act Form on January 14, 2013, without registering as a sex offender in Missouri and updating his registration with the State of Illinois, as required under both Illinois law and the Sex Offender Registration and Notification Act (SORNA). Carroll was convicted of Aggravated Criminal Sexual Abuse on May 1, 1991, in St. Clair County, Illinois.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the United States Marshals Service and the St. Clair County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Baltimore Felon Sentenced to over 11 Years in Prison for Robbing A Towson Cell Phone StoreRead the Press Release
Violated His Supervised Release From a Previous Bank Robbery Conviction
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Antonio Rennard Gilliam, age 43, of Baltimore, today to 135 months in prison followed by three years of supervised release for a commercial robbery and for violating his supervised release from a previous bank robbery conviction.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief James W. Johnson of the Baltimore County Police Department.
According to his plea agreement, on August 19, 2013, Gilliam robbed a cell phone store in the 800 block of Taylor Avenue in Towson. Gilliam told a store clerk that he wanted to switch his phone service. Gilliam lingered in the store until there were no other customers, then approached the cash register with his hand in his pocket, as if he were carrying a handgun. Gilliam leaned over the register counter and yelled at a store employee demanding all the money from the register. Gilliam took approximately $300 from the store, then ordered the store clerk to the back of the store and ordered another employee to go outside. Gilliam then ran away.
A short time later, Baltimore County Police officers responding to the robbery saw Gilliam, who matched the description of the robber, at a nearby intersection. They ordered Gilliam to stop, but he ran into a wooded area on the south side of Goucher Boulevard. Gilliam was found hiding in the woods and arrested. During a subsequent interview with police, Gilliam admitted robbing the cellular telephone store, as well as robbing a swimwear business in Towsontown Mall on August 15, 2013, taking about $300. Gilliam denied having a gun during either robbery.
United States Attorney Rod J. Rosenstein commended the FBI and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney John F. Purcell, Jr., who prosecuted the case.
Baltimore Felon Sentenced to over 11 Years in Prison for Robbing A Towson Cell Phone StoreRead the Press Release
Violated His Supervised Release From a Previous Bank Robbery Conviction
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Antonio Rennard Gilliam, age 43, of Baltimore, today to 135 months in prison followed by three years of supervised release for a commercial robbery and for violating his supervised release from a previous bank robbery conviction.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief James W. Johnson of the Baltimore County Police Department.
According to his plea agreement, on August 19, 2013, Gilliam robbed a cell phone store in the 800 block of Taylor Avenue in Towson. Gilliam told a store clerk that he wanted to switch his phone service. Gilliam lingered in the store until there were no other customers, then approached the cash register with his hand in his pocket, as if he were carrying a handgun. Gilliam leaned over the register counter and yelled at a store employee demanding all the money from the register. Gilliam took approximately $300 from the store, then ordered the store clerk to the back of the store and ordered another employee to go outside. Gilliam then ran away.
A short time later, Baltimore County Police officers responding to the robbery saw Gilliam, who matched the description of the robber, at a nearby intersection. They ordered Gilliam to stop, but he ran into a wooded area on the south side of Goucher Boulevard. Gilliam was found hiding in the woods and arrested. During a subsequent interview with police, Gilliam admitted robbing the cellular telephone store, as well as robbing a swimwear business in Towsontown Mall on August 15, 2013, taking about $300. Gilliam denied having a gun during either robbery.
United States Attorney Rod J. Rosenstein commended the FBI and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney John F. Purcell, Jr., who prosecuted the case.
Baltimore Felon Sentenced to over 10 Years in Prison for Illegal Possession of A Gun and Drug TraffickingRead the Press Release
Baltimore, Maryland –U.S. District Judge George L. Russell III sentenced Robert Fitzgerald, age 35, of Baltimore, today to 130 months in prison followed by three years of supervised release for being a felon in possession of a firearm and ammunition, and possession with intent to distribute heroin and marijuana.The sentence 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; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to court documents, on October 16, 2012, Baltimore Police detectives executed a search warrant at Fitzgerald’s residence and seized 44 zip lock bags containing heroin, packaging material and other drug paraphernalia, a digital scale, 36 zip lock bags containing marijuana, a food saver clear plastic bag with marijuana, $1,284, a loaded .32 caliber revolver, a .22 revolver and a box of ammunition with .32 caliber rounds.
Fitzgerald had previously been convicted of a felony and was prohibited from possessing a firearm and ammunition.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney H. Brandis Marsh, Jr., a cross-designated Baltimore City Assistant State’s Attorney assigned to Exile cases, who prosecuted the case.
Baltimore Cocaine Dealer Exiled to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Kevin Gerard Wyche, age 27, of Baltimore, today to 10 years in prison followed by three years of supervised release for possession with intent to distribute cocaine.The sentence 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; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to his plea agreement, on June 26, 2013, Baltimore City Police officers executed a search warrant at Wyche’s residence for evidence of narcotics trafficking. Police recovered four plastic bags containing a total of 100.79 grams of cocaine; a plastic bag containing 10.44 grams of marijuana; drug paraphernalia; and a bag containing over 115 rounds of ammunition, all which were hidden in the ceiling of the basement between the floor joists. Law enforcement also recovered computers, cell phones, and drug packaging material from the front basement bedroom where Wyche was staying. During a taped interview with police, Wyche admitted that the drugs and ammunition belonged to him. Wyche had previously been convicted of a felony and was prohibited from possessing a gun or ammunition.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg, who prosecuted the case.
Attorney General Holder Recognizes Department Employees and Others for Their Service at Annual Awards CeremonyRead the Press Release
Attorney General Eric Holder recognized 278 department employees earlier this week, including six from the U.S. Attorney’s Office for the Southern District of New York, for their distinguished public service at the 62nd Annual Attorney General’s Awards Ceremony. Held Wednesday at DAR Constitution Hall, this annual ceremony recognized both department employees and others for their outstanding dedication to carrying out the Department of Justice’s missions.
Attorney General Holder stated: “With this important event, we come together to honor some of our nation’s most distinguished, dedicated, and deserving public servants. The hard work and impressive achievements of these 278 award recipients have inspired their colleagues at every level of the U.S. Department of Justice – including me. Their leadership has been indispensable in defining the past year as one of historic accomplishment in the face of nearly unprecedented challenge.”
Six Assistant U.S. Attorneys from the Office of Manhattan U.S. Attorney Preet Bharara were honored at the ceremony.
Manhattan U.S. Attorney Preet Bharara stated: “I am exceedingly proud of the accomplishments of the prosecutors in the Bernard Madoff investment fraud. Their tireless work uncovering the breadth of the scheme has led to multiple indictments and convictions, ensuring that all who played a role in the largest Ponzi scheme in history are brought to justice. Their ongoing efforts to achieve meaningful compensation for victims show their commitment not just to holding accountable those responsible for the fraud, but to making the victims whole.”
The John Marshall Award for Asset Forfeiture was presented to Assistant U.S. Attorneys Arlo Devlin-Brown, Christopher D. Frey, Randall Wade Jackson, Paul M. Monteleoni, Matthew L. Schwartz, and John T. Zach for the U.S. Attorney’s Office for the Southern District of New York, and Assistant U.S. Attorney Barbara A. Ward of the U.S. Attorney’s Office for the District of New Jersey. This team is responsible for the investigation and prosecution of various cases stemming from the collapse of Bernard L. Madoff Investment Securities, which was revealed in December 2008 to be the largest Ponzi scheme in history. In the five years since Bernard Madoff was arrested for orchestrating his massive Ponzi scheme, the team conducted an international investigation that resulted in the prosecution of more than a dozen individuals; a deferred prosecution agreement with JPMorgan Chase Bank; and the forfeiture and collection of more than $4 billion. The forfeited funds are being distributed through the largest and most ambitious remission project in the department’s history, where it will reach thousands of victims in dozens of countries, and serve as a precedent for future large-scale remission programs. The team’s extraordinary work, including its novel use of forfeiture, has ensured a meaningful measure of recompense to thousands of innocent victims who otherwise would not have recovered anything from the failed investments.
Attempted Bank Robber - Who Led Police on Chase and Then Entered A Store to Avoid Apprehension - Is Sentenced to 84 Months in Federal PrisonRead the Press Release
DALLAS — A Dallas man who attempted to rob a bank in Carrollton, Texas, last summer, and who led police on a vehicular chase, wrecked that vehicle and then entered a store to avoid apprehension, was sentenced this morning in federal court in Dallas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Michael Antonio Canez, aka Rudolph Rudy Casillas, 36, was sentenced by Chief U.S. District Judge Sidney A. Fitzwater to 84 months in federal prison. Canez pleaded guilty in January 2014 to one count of attempted bank robbery. He has been in custody since his arrest shortly after the attempted robbery.
According to documents filed in the case, on August 10, 2013, Canez entered Capital One Bank, located at 2603 Old Denton Road in Carrollton with the intent to rob it. After he entered the bank, he presented a note to a teller that stated, “Give me all of the money. I have a gun.” Canez had his right hand in his pocket as if he had a gun. The teller advised that his cash drawer was in the drive-through area and that he needed to walk there to retrieve the cash. The teller walked away, but when he did not return, Canez became upset and tried to get the teller’s attention by yelling, “Hey, Sir!”
A second teller approached Canez and offered assistance. Canez told her to get the first teller. When the second teller walked to the drive-through area, the first teller advised her of the robbery in progress. When neither returned, Canez jumped the teller counter, looked in the back of the bank, and then jumped back over the counter, leaving the bank without obtaining any cash.
Officers with the Carrollton Police Department observed Canez running from the bank and entering a pickup truck. He evaded apprehension and a vehicular chase ensued. During that evasion, he discarded a BB/pellet pistol that officers later recovered and he later admitted to having in his right pants pocket during the attempted robbery. Canez ultimately wrecked his truck in the parking lot of a Target store and he entered the store in an attempt to avoid apprehension. Inside the store, according to the complaint filed, Canez put on a shirt from the store, purchased beer and attempted to walk out of the store. He was arrested as he left the store.
The FBI and Carollton Police Department investigated. Assistant U.S. Attorney Keith Robinson prosecuted.
Assistant U.S. Attorney in the Southern District of Florida Receives Attorney General AwardsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, announces that yesterday in Washington, D.C. Attorney General Eric Holder presented 278 Justice Department employees and 10 individuals, including one Assistant U.S. Attorney in the Southern District of Florida with Attorney General Awards. These annual awards recognize department employees and other individuals for their dedication to carrying out the Department of Justice’s mission.
U.S. Attorney Wifredo Ferrer stated, “This awards confirms that which I already know – that the attorneys and staff of the U.S. Attorney’s Office are of the highest caliber in the nation. I am proud that the Department has recognized AUSA Kevin Larsen for this well-deserved award. His dedication, hard work and commitment to the cause of justice makes him a worthy recipient of this great honor.”
“With this important event, we come together to honor some of our nation’s most distinguished, dedicated, and deserving public servants,” said Attorney General Holder. “The hard work and impressive achievements of these 278 award recipients have inspired their colleagues at every level of the U.S. Department of Justice – including me. Their leadership has been indispensable in defining the past year as one of historic accomplishment in the face of nearly unprecedented challenge.”
In the Southern District of Florida, the following individual was recognized for the following award:
The Attorney General’s Award for Fraud Prevention recognizes exceptional dedication and effort to prevent, investigate and prosecute fraud, white-collar crimes and official corruption. This team is honored for its exceptional perseverance, diligence and vision in the investigation, litigation and prosecution of allegations that Johnson & Johnson and two of its subsidiaries, Janssen and Scios, improperly promoted drugs, disregarded patient safety and paid kickbacks to enhance sales. The resolution marks the culmination of an extensive, coordinated eight-year investigation. The team’s extraordinary efforts resulted in three civil complaints and two criminal informations filed in the three different districts, and demonstrated an exemplary use of parallel proceedings. More important, the team’s efforts resulted in Johnson & Johnson paying in excess of $2.2 billion to resolve criminal and civil liability arising from its illegal misbranding and fraudulent marketing of drugs to vulnerable populations such as the elderly, children and those with developmental disabilities, and its payment of kickbacks to physicians and the nation’s largest long-term care pharmacy provider. The global resolution is the third largest health care fraud settlement in U.S. history, and with respect to Risperdal, the resolution is the largest settlement for one drug.
This year’s award is presented to Assistant U.S. Attorney Kevin James Larsen from the U.S. Attorney’s Office for the Southern District of Florida.
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.
Armed Career Criminal Sentenced to 200 Months in PrisonRead the Press Release
Follow @NDFLNewsTALLAHASSEE, FLORIDA–Edgar Carl Darling, III, 45, of Tallahassee, was sentenced to 200 months in prison based upon his guilty plea to a charge of possession of a firearm by a convicted felon. United States District Judge Mark Walker also sentenced Darling to serve a term of five years supervised release. This sentence was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
United States Attorney Pamela C. Marsh credited the successful prosecution to the joint efforts of the Tallahassee Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Michael T. Simpson prosecuted this case.
On February 11, 2014, residents at a Levy Avenue apartment complex called the Tallahassee Police Department (TPD) to report a man with a handgun involved in an argument at the complex. By the time TPD officers arrived, the man had fled in a car. A TPD officer spotted the vehicle at the corner of Levy and Lake Bradford Road, attempting to make a left-hand turn from the right-hand lane, and discovered Darling in that car.
After the female driver and Darling were removed from the vehicle, officers found a loaded Hi-Point nine millimeter semi-automatic pistol in the front console. The woman driver stated that Darling got the pistol after he was confronted by persons seeking to collect a $500 drug debt.
The Federal Armed Career Criminal statute provides a mandatory minimum fifteen year term for persons arrested with firearms after three or more convictions for violent felony and/or serious drug offenses. Darling had multiple prior convictions that qualified under this statute, and thus he was sentenced as an Armed Career Criminal.Another Defendant Sentenced in Identity Theft Fraud Scheme Involving Personal Identifying Information from AT&T Customer FilesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Jacqueline Nicole Lee Warrick, 26, of Miami, was sentenced before U.S. District Judge Marcia G. Cooke. Warrick was sentenced to 30 months in prison, followed by three years of supervised release.
Warrick previously pled guilty to one count of using an authorized access device and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A.
On July 30, 2014, co-defendant Tracey Delva, 27, of Deerfield Beach, pled guilty to one count of access device fraud, and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A. Sentencing for Delva is scheduled for October 29, 2014.
On August 6, 2014, co-defendant Chouman Emily Syrilien, 25, of Lauderdale Lakes, was sentenced to 34 months in prison, to be followed by three years of supervised release. Syrilien pled guilty to one count of possession of 15 or more unauthorized access devices and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(3) and 1028A.
On October 1, 2014, Carlos Antonio Alexander, 24, of Orlando, was sentenced to 16 months in prison, followed by three years of supervised release. Alexander pled guilty to one count of using an authorized access device and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A.
On September 3, 2014, Angel Arcos, 23, of Pompano Beach, was sentenced to time served, to be followed by four years of supervised release. As a condition of his supervised release, Arcos was subject to 180 days of home detention with electronic monitoring. Arcos pled guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349.
On September 3, 2014, Monique Smith, 31, of Pompano Beach, pled guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349, and one count of aggravated identity theft in violation of Title 18, United States Code, Section and 1028A. Arrington Basil Segu, 28, of Miami pled guilty to one count of access device fraud and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A. Sentencing for Smith and Segu is scheduled for November 19, 2014.
On September 22, 2014, Shantegra La’Shae Godfrey, 23, of Deerfield Beach, pled guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349. Sentencing is scheduled for December 3, 2014.
According to court documents, defendant Syrilien was employed by Interactive Response Technologies, Inc. (IRT) located in Margate. IRT provides staffing for call centers to handle direct sales and customer inquiries for AT&T. Syrilien unlawfully provided a co-conspirator with the personal identifying information from multiple AT&T customer files. Segu also unlawfully provided personal identifying information of numerous individuals to the co-conspirator.
Alexander, Delva, Godfrey, Smith and Warrick were added as “authorized users” on victims’ credit or debit card accounts or bank accounts to access the accounts of persons whose personal identifying information had been stolen. Once a co-conspirator’s name was added as an “authorized user,” the bank and/or credit card company was directed to mail additional debit or credit cards bearing the names of these newly added “authorized users” to their addresses or addresses under their control, all without the true account holder's knowledge or consent. The defendants used these credit and debit cards to make purchases or obtain money.
Delva and Warrick both utilized fraudulently obtained debit and credit cards that bore their names as additional “authorized users” on victims’ accounts to make both retail purchases as well as cash advances in excess of $28,000. Alexander, Smith and Godfrey made retail purchases as well as cash advances in excess of $24,000, $12,000 and $8,200, respectively.
Arcos allowed his personal information to be used to open a bank account to further the fraudulent activity. From September 16 to 18, 2013, five withdrawals totaling $13,000 were made from the fraudulent account and deposited into Arcos’ checking account.
The defendants face a maximum of 30 years in prison for the conspiracy charge, a maximum of 10 years in prison for the access device fraud charge, and a mandatory term of two years in prison for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI and FBI. The case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
After Supreme Court Declines to Hear Same-Sex Marriage Cases, Attorney General Holder Announces Federal Government to Recognize Couples in Seven New StatesRead the Press Release
Attorney General Eric Holder announced today that the federal government will recognize same-sex marriages taking place in the states affected by the Supreme Court’s recent decision to decline to review rulings from three federal appeals courts that had struck down bans on same-sex marriage. The Attorney General added that the Department of Justice will work with agencies across the administration to ensure that all applicable federal benefits are extended to those couples as soon as possible.
“We will not delay in fulfilling our responsibility to afford every eligible couple, whether same-sex or opposite-sex, the full rights and responsibilities to which they are entitled. With their long-awaited unions, we are slowly drawing closer to full equality for lesbian, gay, bisexual, and transgender Americans nationwide,” Attorney General Holder said.
The complete text of the Attorney General’s video message is below:
“Last week, the Supreme Court declined to review rulings from three federal appeals courts that had struck down bans on same-sex marriage in five states across the country. Going forward, marriage equality will be the law in those states.
“The practical consequences of the Court’s decision are profound for families throughout the nation. Within hours of the decision, same-sex couples in Indiana, Oklahoma, Utah, Virginia, and Wisconsin were able to have their unions recognized in the states where they live—to stand with their partners, and with their children, as loving and committed families with the full protection of the law.
“I am pleased to announce that the federal government will recognize the same-sex marriages now taking place in the affected states, and I have directed lawyers here at the Department of Justice to work with our colleagues at agencies across the Administration to ensure that all applicable federal benefits are extended to those couples as soon as possible. We will not delay in fulfilling our responsibility to afford every eligible couple, whether same-sex or opposite-sex, the full rights and responsibilities to which they are entitled.
“With their long-awaited unions, we are slowly drawing closer to full equality for lesbian, gay, bisexual, and transgender Americans nationwide. By letting the lower-court decisions stand, the Supreme Court expanded the number of states allowing same-sex marriage from 19 to 24, along with the District of Columbia. Just one day after the Supreme Court’s action, the U.S. Court of Appeals for the Ninth Circuit joined the other courts that have invalidated bans, extending marriage rights even further. In the past eight days, at least half a dozen additional states have recognized marriage equality. And even more states covered by the lower-court rulings will almost certainly be joining them in short order.
“The steady progress toward LGBT equality we’ve seen – and celebrated – is important and historic. But there remain too many places in this country where men and women cannot visit their partners in the hospital, or be recognized as the rightful parents of their own adopted children; where people can be discriminated against just because they are gay. Challenges to marriage restrictions are still being actively litigated in courts across the country. And while federal appeals courts have so far been unanimous in finding that bans on same-sex marriage are unconstitutional, if a disagreement does arise, the Supreme Court may address the question head-on. If that happens, the Justice Department is prepared to file a brief consistent with its past support for marriage equality.
“In the meantime, we will continue to extend federal benefits to same-sex couples to the fullest extent allowed by federal law. And we will continue to work—to the very best of our ability—to bring about a more equal future for all Americans nationwide.”
The full video of the Attorney General’s message is available at http://www.justice.gov/agwa.php.
Abilene Man Faces up to 10 Years in Federal Prison for Possessing Child PornographyRead the Press Release
LUBBOCK, Texas — A 21-year-old Abilene, Texas, man appeared in federal court in Lubbock, Texas, this morning and pleaded guilty to a federal child pornography offense, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Reymundo Alejandro Sanchez pleaded guilty before U.S. District Judge Sam R. Cummings to one count of possession of child pornography. He faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Sanchez remains on bond.
According to plea documents filed in the case, Sanchez used his cell phone to communicate with several persons using a mobile application called Kik, as well as through Facebook and other means. Many of those persons identified themselves to Sanchez as minors.
Sanchez engaged many of those persons in sexually oriented communication, which often included Sanchez sending one or more sexually explicit images of himself. In exchange, Sanchez sometimes received images or videos of minors engaged in sexually explicit conduct. One example of such child pornography was a video that Sanchez received on approximately April 30, 2014, which depicted a female minor, under age 18, engaged in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Abilene Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations investigated the case. Assistant U.S. Attorney Steven M. Sucsy is prosecuting the case.
A Department of Veterans Affairs Official and Durable Medical Equipment Vendor Charged with Health Care FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Monty Stokes, Special Agent in Charge, United States Department of Veteran Affairs, Office of Inspector General (VA-OIG), announce the charges filed against Timothy Rouch, 47, Port St. Lucie, the former Chief of Prosthetics at VA Medical Center West Palm Beach, and Frankie Lane, 52, formerly of Boca Raton, owner of AAA Medical Discount, two defendants for conspiracy to commit healthcare fraud, in violation of Title 18, United States Code, Section 1349.
According to the information, the defendants conspired to fraudulently bill the VA in West Palm Beach for durable medical equipment that was never provided to veterans. The VA official solicited and received kickbacks from the vendor. AAA Medical Discount sold over $2.2 million in durable medical equipment to the VA from 2006-2010.
If convicted, each faces a statutory maximum penalty of up to 10 years in prison, to be followed by up to a three-year term of supervised release, and imposition of a $250,000 fine in addition to payment of restitution.
Mr. Ferrer commended the investigative efforts of the VA-OIG. The case is being prosecuted by Assistant U.S. Attorney Stephanie Evans.
An information is only an accusation and a defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
24 Arrested in Crystal City Area-Based Cocaine Distribution OperationRead the Press Release
Federal, state and local law enforcement have arrested 23 individuals, including 35-year-old alleged ringleader George Alamillo of San Antonio, charged with conspiracy to distribute cocaine in the Crystal City, La Pryor, Carrizo Springs and San Antonio areas announced United States Attorney Robert Pitman, Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division, and Homeland Security Investigations Special Agent in Charge Janice Ayala, San Antonio Division.
An eight–count indictment, unsealed today, charges those arrested, along with 44–year-old Gabriel Martinez (aka “Gabby”), who was already in custody prior to yesterday, with conspiracy to distribute cocaine. A list of the defendants arrested yesterday is below. Defendants face between five and 40 years, or up to 20 years, in federal prison upon conviction for the drug conspiracy charge.
The indictment alleges that from February 2014 to September 2014, the defendants participated in a cocaine distribution conspiracy. During this investigation, authorities have seized approximately one kilogram of cocaine, 660 pounds of marijuana, 15 firearms (including 10 AK-47s and one MAC-10 semi-automatic pistol), approximately $33,000 in U.S. Currency and three vehicles.
In addition to the drug charges, several defendants including Gerardo Martinez, Gabriel Martinez, Claudio Jimenez and Javier De la Rosa are charged with knowingly transporting undocumented aliens. Each defendant faces up to ten years incarceration upon conviction.
Domingo Aguilar also faces a single charge of unlawful possession of a firearm by a drug user. The indictment alleges that on June 10, 2014, Aguilar was unlawfully in possession of a .22 caliber American Tactical Rifle. Aguilar faces up to ten years incarceration upon conviction.
Martha Perez also faces a misprision of felony charge whereby she allegedly was aware of the drug distribution conspiracy and had possession of a cell phone used by a co-defendant to facilitate the operation, yet denied ever possessing the phone to authorities. Perez faces up to three years incarceration upon conviction.
“The success of this operation exemplifies the outstanding teamwork among federal, state and local law enforcement agencies in the Eagle Pass region. DEA will continue to work closely with our law enforcement partners in order to improve the quality of life in the communities throughout this area,” stated DEA Special Agent in Charge Joseph M. Arabit.
These charges and arrests resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by the Drug Enforcement Administration and Homeland Security Investigations with assistance from the United States Border Patrol, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Eagle Pass Police Department, 293rd Judicial District Attorney’s Office, Dimmit County Sheriff’s Office, Uvalde County Sheriff’s Office, Kinney County Sheriff’s Office, Maverick County Sheriff’s Office and the Zavala County Sheriff’s Office.
“This OCDETF criminal investigation worked by Homeland Security Investigations (HSI) and DEA dealt a major blow to a south Texas criminal organization that is made up several criminal networks,” said Special Agent in Charge Janice Ayala, HSI San Antonio.
“The Zavala County Sheriff’s Office is committed to working with our federal and state law enforcement partners to identify and remove drug trafficking from our communities,” said Zavala County Sheriff Eusevio Salinas. “Investigations of this scale provide a positive impact on our citizens and make our communities safer. I would like to thank the DEA Eagle Pass Office and HSI for their commitment to the citizens of Zavala County and our State.”
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
ARRESTED YESTERDAY (24)
NAME AGE RESIDENCE
GEORGE ALAMILLO 35 San Antonio
LUCIO LEROY GONZALEZ 34 San Antonio
MARTHA ZULEMA PEREZ 44 LaPryor, TX
JOSE LUIS PEREZ 39 LaPryor
LLOYD DANIEL JACQUEZ a.k.a. “Richie” 34 LaPryor
JAVIER PEREZ a.k.a. “J-Bird” 33 LaPryor
JESUS VICTORINO a.k.a. “Chuy” 35 Uvalde, TX
JOHN DAVID VICTORINO a.k.a. “Pajaro” 35 Uvalde
MARGARITO BALCAZAR a.k.a. “Nunito” 26 LaPryor
VENTURA MORENO a.k.a. “Benny” 34 Crystal City, TX
REYNALDO ROBLEDO a.k.a. “Rey” 34 LaPryor
TIMOTHY PENA 36 LaPryor
JESSE JOE QUEVEDO a.k.a. “Caveman”, “Chuy” 35 Crystal City
GERARDO MARTINEZ a.k.a. “Gerry” 47 Crystal City
JESSICA LARA RODRIGUEZ 30 Carrizo Springs, TX
CHRIS MARTINEZ 40 Carrizo Springs
RAMIRO AGUILAR a.k.a. “Ram” 41 Crystal City
JOHNNY AGUILAR 40 Crystal City
MARK ANTHONY MENA 27 Crystal City
DEEANA NICOLE MARTINEZ 24 Crystal City
CLAUDIO PABLO JIMENEZ a.k.a. “Clyde” 43 Crystal City
JAVIER DELAROSA 42 Crystal City
DOMINGO AGUILAR a.k.a. “Mingo” 61 Crystal City
JESUS PEREZ a.k.a. “Jesse” 34 LaPryor
16 October 2014
“Operation Stolen Youth” Receives National AwardRead the Press Release
Washington DC – Thomas W. Padden, Director, Organized Crime Drug Enforcement Task Forces (OCDETF), Department of Justice, announced that the District of North Dakota was the recipient of the 2014 OCDETF National Award for Outstanding Investigation for Creative Response to Emerging Public Safety Threat for the phenomenal multi-agency investigative work during “Operation Stolen Youth”. This prestigious national award most exemplifies the mission and spirit of the OCDETF Program and reflects great credit upon the District of North Dakota and those North Dakota law enforcement agencies involved in the Operation Stolen Youth investigation.
In Bismarck, Timothy Q. Purdon, US Attorney, said "This national award, the first one ever awarded to agents, prosecutors, and staff in North Dakota, is well deserved recognition on a national scale for a law enforcement team whose swift actions in response to synthetic drug overdose deaths in Grand Forks and East Grand Forks kept the public safe, dismantled the organization that was trafficking this poison, and delivered some measure of Justice to the families of the young men who lost their lives as a result of taking synthetic drugs." Purdon added, “All illegal drugs are dangerous and synthetic analogue substance are no different. You risk your life when you ingest them."
In Fargo, Christopher C. Myers, First Assistant US Attorney, said “We have worked numerous large and successful drug cases in the District of North Dakota but the swift, team-based response in this case was remarkable given that the substances ingested were new and deadly analogue controlled substances. Despite this challenge, this team identified, targeted and dismantled a nationwide trafficking organization within sixty days of the first overdose. Such a feat is unheard of in the investigation of large scale drug trafficking organizations. The performance of this particular team in this case was exemplary and undoubtedly saved lives.”
“Operation Stolen Youth” investigation was initiated in June of 2012, after two teenagers died from an overdose of deadly analogue controlled substances in the Grand Forks area. The investigation revealed that several young adults in the Grand Forks area were involved in the distribution of various analogue substances that were acquired from an internet based company near Houston, Texas named Motion Resources, which was importing these substances from overseas and distributing them across the United States. Charles William Carlton, 29, Katy, Texas, was identified as the leader and was sentenced to serve 20 years and six months in prison for his role in the conspiracy. Carlton was also ordered to forfeit $385,000 in proceeds related to Motion Resources. Additionally, 14 other defendants were convicted in the case. The sentences for the other defendants ranged from probation to 20 years imprisonment.
Recognized for their contribution to this successful investigation were:
Terrence Boos Drug Enforcement Administration
Lori Daly United States Attorney's Office
Brent Druery Homeland Security Investigations
Steve Gilpin North Dakota Bureau of Criminal Investigation
Nathan Glur Internal Revenue Service, Criminal Investigation
Jeremy Grube Homeland Security Investigations
Adam Henney United States Postal Inspection Service
Julie Hough United States Attorney's Office
Tom Irvin United States Postal Inspection Service
Mike Jennings Grand Forks Police Department
Charlene Keller North Dakota State Laboratory
Kenneth Kulick Food and Drug Administration
Joel Lloyd Grand Forks Sheriff's Office
Christopher C. Myers United States Attorney's Office
Cassandra Prioleau Drug Enforcement Administration
Chelsea Smith United States Attorney's Office
Debra Wilson United States Attorney's OfficeYonkers Cardiologist Convicted of Fraud SentencedIn White Plains Federal Court to Three Years in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ROHAN WIJETILAKA was sentenced today by U.S. District Judge Vincent L. Briccetti in White Plains federal court to three years in prison for health care fraud. WIJETILAKA, who previously pled guilty in June 2014, was also ordered by Judge Briccetti to pay a total of $2 million in forfeiture and restitution.
U.S. Attorney Preet Bharara stated: "Sworn to use his education and skills to comfort and heal, Wijetilaka instead resorted to fraud on a massive scale, abusing the trust placed in him by his patients and by the community. Our Office commends the investigative efforts in this case of the Drug Enforcement Administration, the Federal Bureau of Investigation, the U.S. Department of Health and Human Services – Office of the Inspector General, the Westchester County Department of Public Safety, and the Yonkers Police Department.”
According to the Indictment to which WIJETILAKA pled guilty, statements made during the plea, and other information presented during the case:
WIJETILAKA, 65, of Manhattan, was a cardiologist licensed to practice medicine in the State of New York. He maintained a cardiology practice in Westchester County, New York (the “Wijetilaka Practice”), which included examination rooms and diagnostic testing facilities. WIJETILAKA obtained payments for diagnostic tests, office visits, and other procedures (collectively, the “Medical Procedures”) from Medicare and numerous private health insurance providers (the “Health Insurance Providers”).
In July 2007, WIJETILAKA received written notice from the New York State Department of Health, State Board for Professional Medical Conduct (the “State Board”), that he was the subject of a State Board investigation. In November 2011, following an initial inquiry, the State Board served WIJETILAKA with formal charges of professional misconduct relating, in part, to alleged fraudulent billing. In June 2012, after multiple hearings, a State Board committee found against WIJETILAKA on 41 specifications of professional misconduct, including fraudulent billing, filing false reports, and failing to maintain adequate medical records.
To receive payments for Medical Procedures from the Health Insurance Providers, WIJETILAKA was required, among other things, to submit, and cause the Wijetilaka Practice to submit, information to the Health Insurance Providers regarding aspects of the Medical Procedures he performed or caused to be performed. For instance, in order to bill Medicare for a particular patient procedure, WIJETILAKA had to submit a form that stated a diagnosis of the patient’s condition and provided a procedure code identifying the service or services rendered. WIJETILAKA also had to certify, in substance, that the services rendered were medically necessary and furnished by the Wijetilaka Practice.
Between 2009 and 2011, WIJETILAKA routinely performed Medical Procedures at the Wijetilaka Practice for which WIJETILAKA and the Wijetilaka Practice submitted claims to Health Insurance Providers. During this period, WIJETILAKA submitted millions of dollars of claims to Medicare alone.
With respect to many of the Medical Procedures he performed or caused to be performed, WIJETILAKA furnished, and caused to be furnished, false information to Health Insurance Providers (the “Fraudulent Claims”) that resulted in the Health Insurance Providers paying the Wijetilaka Practice for procedures that were medically unnecessary and served no meaningful diagnostic purpose. Among other things, WIJETILAKA falsely billed for office visits that did not occur and falsely reported non-existent symptoms to justify costly and unnecessary diagnostic tests.
In order to attract additional patients to the Wijetilaka Practice and maintain existing patients, WIJETILAKA would and did provide Schedule II controlled substances, including oxycodone, to drug-seeking patients, in exchange for those patients undergoing unnecessary diagnostic tests and other Medical Procedures.
In this manner, WIJETILAKA defrauded Health Insurance Providers out of money paid to the Wijetilaka Practice as a result of the Fraudulent Claims.
Despite being on notice that he was under State Board investigation in July 2007, and being formally charged with professional misconduct by the State Board in or about November 2011, for, among other things, fraudulent billing, WIJETILAKA continued his illicit scheme. To conceal his scheme from the State Board, WIJETILAKA generated additional false records to justify tests that he had performed.
Mr. Bharara praised the investigative efforts of the Drug Enforcement Administration, the Federal Bureau of Investigation, the U.S. Department of Health and Human Services – Office of the Inspector General, the Westchester County Department of Public Safety, and the Yonkers Police Department.
The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Ilan Graff, Andrew Bauer, Kathryn Martin, and Benjamin Allee are in charge of the prosecution.
Woman Sentenced to Probation with Home Detention, Ordered to Perform Community Service for Violating Federal Drug LawsRead the Press Release
JOHNSTOWN, Pa. - A resident of Derry, Pa., has been sentenced in federal court to three years’ probation, the first six months of which will be home detention with electronic monitoring, and 100 hours of community service, on her conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Holly Thomas, 23.
According to information presented to the court, from the spring of 2011 to May 15, 2012, Thomas, along with co-defendants, conspired to distribute and possess with intent to distribute heroin.
Assistant U.S. Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pennsylvania State Police and the Indiana Police Department for the investigation leading to the successful prosecution of Thomas. Other agencies participating in this investigation included the Pennsylvania Attorney General’s Office, the Cambria County Drug Task Force, the Cambria County Sheriff’s Department, the Cambria County District Attorney’s Office, the Indiana County Drug Task Force, and the Indiana County District Attorney’s Office.
Witness Tampering Indictment Returned Against Two New Orleans MenRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ANTONIO NEVEAUX, 39, and ANTHONY B. WASHINGTON, 52, both residents of New Orleans, were charged today in a superseding indictment with conspiring to tamper with a witness during a pending federal investigation. The superseding indictment also realleges the counts of an indictment returned by the grand jury against NEVEAUX in February 2014 charging him with possession with the intent to distribute more than 28 grams of crack cocaine and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents, NEVEAUX and WASHINGTON conspired to corruptly obstruct a federal grand jury proceeding investigating NEVEAUX.
U. S. Attorney Polite reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, (“ATF”) in investigating this matter. Assistant Tony Sanders of the Violent Crimes Unit under the Project Safe Neighborhoods initiative is in charge of this prosecution.
(Download Indictment )
Wisconsin Man Sentenced to over Nineteen Years in Federal Prison for Bank RobberyRead the Press Release
A man who robbed two downtown Cedar Rapids banks while he was on federal and state parole for prior bank robbery convictions was sentenced today to more than nineteen years in federal prison.
Jeffrey Haydock, 58, from Watertown, Wisconsin, received the prison term after a June 13, 2014, guilty plea to two counts of bank robbery with a dangerous weapon.
At the guilty plea, Haydock admitted he robbed the First Federal Credit Union on July 30, 2009, and the Linn Area Credit Union on February 17, 2010. Haydock further admitted that he was armed with what appeared to be a gun during each robbery. In a plea agreement, Haydock also admitted he robbed the First Federal Credit Union for a second time on November 12, 2009. At the time of the robberies, Haydock was on parole for both a 1986 federal conviction for bank robbery and a 1986 conviction in Wisconsin for multiple bank robberies.Haydock was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Haydock was sentenced to 235 months’ imprisonment. A special assessment of $200 was imposed and he was ordered to make restitution to the banks. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Cedar Rapids Police Department and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number is 14-CR-0047.
Westmoreland County Man Gets Prison Sentence for Conspiring to Distribute HeroinRead the Press Release
JOHNSTOWN, Pa. - A resident of New Florence, Pa., has been sentenced in federal court to 12 months in prison, 100 hours community service and three years supervised release, on his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Brian Davenport, 24.
According to information presented to the court, from the spring of 2011 to May 15, 2012, Davenport, along with co-defendants, conspired to distribute and possess with intent to distribute heroin.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
Mr. Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pennsylvania State Police and the Indiana Police Department for the investigation leading to the successful prosecution of Davenport. Other agencies participating in this investigation included the Pennsylvania Attorney General’s Office, the Cambria County Drug Task Force, the Cambria County Sheriff’s Department, the Cambria County District Attorney’s Office, the Indiana County Drug Task Force, and the Indiana County District Attorney’s Office.
West Chester Woman Charged in Real Estate Ponzi SchemeRead the Press Release
PHILADELPHIA – Marie Mikesche Bontigao, 43, of West Chester, PA, was charged by indictment, unsealed yesterday, in a fraud scheme involving more than $2 million, announced United States Attorney Zane David Memeger. She is charged with wire and mail fraud.
Bontigao was a licensed real estate broker who operated a franchise location of EXIT Realty in Philadelphia, New Jersey and Delaware and was the founder of the EXIT Realty “Tri-State Group: and “Tri-State Investment Holdings, Inc.” (T.R.I.H.I.). According to the indictment, between 2007 and 2013, Bontigao solicited individuals to invest in her real estate projects but, instead of investing the lenders’ money in real estate used the funds to operate her business and to pay personal expenses. Bontigao allegedly bilked these lenders out of more than $2 million.
If convicted, the defendant faces a maximum possible sentence of 80 years in prison, a three-year period of supervised release, and a $1 million fine.
The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Denise S. Wolf.
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Wentzville Man Sentenced on Multiple Armed Bank Robberies and Shooting of Missouri State TrooperRead the Press Release
St. Louis, MO – WARREN J. GLADDERS, Wentzville, MO, was sentenced to 293 months in prison involving three armed bank robberies committed in July, August and September 2013. On July 7, 2013, Gladders took approximately $7,000 from the Reliance Bank located in Creve Coeur, Missouri. On August 2, 2013, Gladders took approximately $5,000 from First National Bank located in Weldon Springs, Missouri. On September 20, 2013, Gladders took approximately $43,000 from the First Bank located in Marthasville, Missouri. In each instance, Gladders entered the banking institution and threatened the bank tellers and customers while displaying a firearm.
On September 20, 2013, Gladders fled the scene of his final bank robbery in his personal vehicle. Gladders was traveling at a high rate of speed. A witness outside of First Bank observed the robbery in progress. The witness was able to obtain a partial license plate number and description of Gladders’ vehicle. That information was provided to law enforcement officials. A Missouri State Highway Patrol trooper observed a vehicle matching the description and license plate number and followed it. The trooper pursued and caught up to Gladders and his vehicle. The trooper activated his vehicle’s emergency lights and sirens. Gladders eventually pulled his vehicle over. The trooper exited his vehicle and demanded that Gladders get out of his vehicle. As the trooper was exiting his vehicle, Gladders exited his.
As Gladders exited his vehicle, he raised the Smith and Wesson revolver possessed by him and shot at the trooper approximately four times. One of those shots struck the trooper in the center of the trooper’s chest. The trooper was protected by his protective vest. The bullet from Gladders’ firearm penetrated the vest but not the trooper’s body. The trooper was able to return fire. The trooper struck Gladders at least once in the leg. Gladders fell to the ground and the firearm fell out of Gladders’ hand. Gladders attempted to regain control of his firearm. The trooper fired additional warning shots at Gladders -- not striking him. Gladders stopped moving at that point. The trooper was able to remove Gladders’ firearm from his proximity and place Gladders under arrest. Multiple law enforcement officials from various agencies responded to the scene. Gladders was taken into custody and transported for medical attention.
Following Gladders’ arrest, search warrants were obtained for his vehicle, residence and business. Among other things, most of the items worn or used by Gladders during the armed bank robberies were located and seized by law enforcement. Furthermore, an officer recovered and seized what is commonly referred to as a “sawed-off shotgun” from inside Gladders’ vehicle.
Gladders pled guilty to the charges in July and appeared today for sentencing before United States District Judge Carol E. Jackson. The Missouri State Highway Patrol trooper was present in court for the sentencing.
In addition to the Federal Bureau of Investigation, this case was investigated by the Missouri State Highway Patrol, the Warren County Sheriff’s Department, the St. Charles County Sheriff’s Department, the Creve Coeur Police Department, the Montgomery County Sheriff’s Department, the Jonesburg Police Department and the Wright City Police Department, along with coordination amongst the Warren County, St. Charles County and St. Louis County Prosecuting Attorneys’ Offices.
Wayne County Man Charged with Firearm OffenseRead the Press Release
Follow @SDILNewsAlvin L. Ewing, II, 50, of Fairfield, Illinois, has been charged in United States District Court in Benton with being a felon in possession of a firearm, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on October 7, 2014, stemmed from Ewing’s arrest by an Illinois State Police trooper following a traffic stop on. During this stop, a Bushmaster .223 caliber semi-automatic rifle was found concealed on the motorcycle Ewing was driving.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The indictment also alleges that Ewing committed this offense after conviction of at least three violent felonies or serious drug offenses within the meaning of federal law. If convicted, Ewing faces a minimum mandatory sentence of 15 years to life in federal prison, a $250,000, and a term of 5 years of supervised release to follow incarceration.
Following a hearing held today, Ewing was denied bond on the federal charges and remanded to the custody of the United States Marshal to await further proceedings. Ewing’s next scheduled court appearance is December 4th at 10:30 a.m. for a final pre-trial conference at the United States District Courthouse in Benton. A trial date of December 15th at 9:00 a.m. has also been set.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and the Illinois State Police (District 19) with the assistance of the Grayville Police Department and the Bureau of Alcohol, Tobacco, and Firearms.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Virginia Beach Man Pleads Guilty to Production of Child PornographyRead the Press Release
NEWPORT NEWS, Va. – Michael John Baigert, Jr., 21, of Virginia Beach, Virginia, pled guilty today to four counts of production of child pornography.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Royce E. Curtin, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the plea was accepted by Magistrate Judge Douglas Miller.
Baigert was indicted on September 10, 2014, by a federal grand jury on four counts of production of child pornography. The penalty for Production of Child Pornography is a mandatory term of 15 years with a maximum penalty of 30 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. Baigert will be sentenced on February 9, 2015, by U. S. District Court Judge Mark S. Davis.
In a statement of facts filed with the plea agreement, Baigert acknowledged that in August, 2013, he travelled from his home in Virginia Beach to York County, Va., to visit “Jane Doe 1” whom he met via an on-line messenger app called KIK. Baigert and “Jane Doe 1” entered a wooded area near her home where Baigert committed a number of sex acts on her. The victim reported to the York-Poquoson Sheriff’s Office that she had been sexually assaulted. Unbeknownst to the victim, Baigert recorded a portion of the sex acts on his iPhone. Detectives obtained a search warrant for the defendant’s home where they seized a number of items. Baigert admitted to detectives that he engaged in a number of sex acts with “Jane Doe 1” who he knew to be 14 or 15 years old. Further investigation revealed three other victims, age 16 or younger, with whom Baigert engaged in sexual activity. In each instance Baigert asked the victim if he could record their sexual activity and was told “no” each time. Following execution of the search warrant, numerous homemade videos depicting young females engaged in sexually explicit conduct were found on electronic devices recovered from Baigert’ s home. Baigert disputes that he asked any of the victims if he could record their sexual activity.
This case was investigated by the FBI’s Norfolk Division. Assistant U.S. Attorney Lisa R. McKeel is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. : 4:14cr55
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Used Car Salesman Sentenced to 15 Months in Federal Prison in Money Laundering Conspiracy; Will Forfeit Almost $12 MillionRead the Press Release
Memphis, TN – Wayne David McAlpin, Jr., 50, of Memphis, TN was sentenced yesterday by U.S. District Judge John T. Fowlkes, Jr. to serve 15 months in federal prison followed by three years of supervised release for his role in selling cars to drug traffickers in an effort to launder drug proceeds, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee; Brian K. Chambers, the Resident Agent in Charge of the DEA Memphis Resident Office; and Christopher A. Henry, Special Agent in Charge of the Nashville Field Office. There is no parole in the federal system.
McAlpin pled guilty on July 11, 2013 to one count of money laundering and one count of filing fraudulent documents with the Internal Revenue Service (IRS).
In addition to the prison sentence, McAlpin, Jr. and his co-defendants forfeited their interests in almost $12 million dollars in bank accounts, investment accounts and vehicles, including: a 2008 Bentley Continental GTC; a 2011 Audi A8; a 2009 Cadillac Escalade; and a 2011 Lexus GX460.
“While masking themselves as legitimate businessmen, Wayne McAlpin Jr. and his cohorts at Budget Auto Sales lined their pockets with excessive profits by helping drug dealers enjoy the lavish fruits of their criminal acts,” said U.S. Attorney Edward L. Stanton III. “McAlpin, a now twice convicted felon, will spend 15 months in a federal prison in addition to forfeiting millions of dollars of ill-gotten gains.”
This investigation was conducted in conjunction with prosecutors in Memphis as part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Program, which seeks to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.
“Traffickers may be equipped with a multitude of sophisticated methods in which to hide their assets, but Drug Enforcement Administration’s (DEA) relentless pursuit to disrupt and destroy their drug trafficking activities prevailed in this case,” said Brian K. Chambers, the Resident Agent in Charge of the DEA Memphis Resident Office. “This investigation was a success because of the multi-level law enforcement cooperation.”
According to the agreed-upon statement of facts filed with the court during McAlpin, Jr.’s plea hearing, during the time in question, McAlpin, Jr. was president of Budget Auto Sales. This business was frequented by individuals engaged in criminal activity, including, but not limited to, illegal drug trafficking. The business sold multiple vehicles to drug traffickers, knowing they had previously had vehicles seized by law enforcement for transporting and concealing illegal drugs.
As part of the criminal conspiracy to conceal the fact that cars were being purchased with the proceeds of illegal drug trafficking, McAlpin, Jr. submitted IRS Form 8300s with false and misleading information. This form requires any car dealership to report all cash transactions of $10,000 or more. The individuals also titled vehicles in the names of other people, as part of an effort to hide the transactions from law enforcement.
"The role of the IRS CI in narcotics investigations is to follow the money so we can financially disrupt and dismantle major drug trafficking organizations," stated Christopher A. Henry, Special Agent in Charge of the Nashville Field Office. “One of the government’s most powerful weapons is the ability to seize and forfeit the assets associated with narcotics-related crime. IRS Criminal Investigation is proud to work with our law enforcement partners by lending our expertise in these complex financial investigations."
This crime was investigated by the Drug Enforcement Administration, IRS Criminal Investigations, the Memphis Police Department, and the Shelby County Sheriff’s Department. The case was prosecuted by Assistant United States Attorneys Chris Cotten, Daniel French, and Jerry Kitchen on behalf of the government.
United States Files Complaint in False Claims Act Lawsuit Alleging Defense Contractors Knowingly Overcharged the Navy on Aircraft Maintenance ContractRead the Press Release
The Department of Justice announced today that it has filed its complaint in intervention in a case against defendants Sikorsky Aircraft Corporation and two of its subsidiaries, Sikorsky Support Services Inc. and Derco Aerospace Inc., for violating the False Claims Act. Sikorsky Aircraft Corporation is a wholly owned subsidiary of United Technologies Corporation, with headquarters in Stratford, Connecticut.
The government’s complaint alleges that Sikorsky Aircraft Corporation approved an illegal cost-plus-a-percentage-of-cost subcontract between Sikorsky Support Services Inc., and Derco Aerospace. A cost-plus-a-percentage-of-cost contract is one where the cost of performance is unknown in advance and compensation is determined based on the cost of performance plus an agreed-to percentage of such costs. Such contracts are prohibited because they give contractors no incentive to control the cost of performance. The complaint further alleges the defendants used this illegal subcontract to overcharge the Navy on parts and materials that were used to maintain Navy aircraft.
“Those who contract with the federal government and accept taxpayer dollars, must follow the rules,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “Today’s complaint demonstrates, once again, that the Department of Justice will not tolerate contractors who engage in schemes to defraud the armed forces or any other agency of the United States.”
“The claims in the civil complaint that we have filed reflect our focused and purposeful investigative work in identifying and seeking remedies for false claims in government contracting,” said U.S. Attorney James L. Santelle for the Eastern District of Wisconsin. “Under the authority of the False Claims Act, we pursue fraud of this sort to ensure that taxpayer dollars are spent lawfully and that overcharges and other types of contracting misconduct are addressed.”
The complaint was filed in a case brought under the qui tam provisions of the False Claims Act by Mary J. Patzer, a former employee of Derco. Under the False Claims Act, a private citizen, called a “relator,” may bring suit on behalf of the United States and share in any recovery. The government may intervene in the case, as the government has done here. The False Claims Act allows the government to recover treble damages and penalties from those who violate it.
The case is being handled jointly by the Civil Division and the U.S. Attorney’s Office for the Eastern District of Wisconsin.
The case is captioned United States ex rel. Patzer v. United Technologies Corporation, et al., No. 11-C-560 (E.D. Wis.). The claims made in the complaint are allegations only, and there has been no determination of liability.
Two New Orleans Men Plead Guilty to Drug ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RYAN DAVIN MANNING, age 37, and DANIEL LEVI MORRIS, age 34, both residents of New Orleans, pled guilty as charged on October 15, 2014, to conspiracy to distribute and possession with Intent to Distribute heroin.
U.S. District Judge Kurt D. Engelhardt set sentencing on December 10, 2014.
This investigation targeted a drug trafficking organization that operated in the River Gardens Apartment area of New Orleans.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. Assistant United States Attorney J. Collin Sims is in charge of the prosecution.
(Download Factual Basis - Manning )
(Download Factual Basis - Morris )
Two Haitian Men Sentenced to 57 Months in Prison for Alien Smuggling Conspiracy That Killed EightRead the Press Release
St. Thomas, USVI – On Thursday, October 16, 2014, District Court Judge Curtis V. Gomez sentenced both Dieuseul Mompremier, 43, also known as “Jomei,” and Lamorthe Delva, 46, to 57 months imprisonment, five years supervised release and a $100 special assessment for their roles in a conspiracy to smuggle illegal aliens into the United States, which resulted in the death of eight individuals, United States Attorney Ronald W. Sharpe and Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) Special Agent in Charge Angel Melendez announced. Edourre, who was arrested and prosecuted in the British Virgin Islands (BVI) for manslaughter, is currently serving a 10-year sentence. Mompremier and Delva, who have been incarcerated since their arrests on April 11, 2014, were remanded to the custody of the U.S. Marshals Service to begin serving their sentences.
Delva and Mompremier each pleaded guilty to Count One of an indictment charging them with alien smuggling. Delva pleaded guilty on May 23, 2014, and Mompremier pleaded guilty on June 19, 2014. According to court records, in December 2010, Mompremier, Delva, and Roro Edourre, 46, conspired with each other and additional co-conspirators to smuggle illegal aliens from St. Maarten, Netherlands Antilles, to St. John, U.S. Virgin Islands. On December 5, 2010, Edourre was the captain on the vessel “Jesus La,” with approximately 33 passengers, most of them Haitian nationals, including men, women and children, when the vessel traveled from St. Maarten, Netherlands Antilles, to the U.S. Virgin Islands. While Edourre was transporting the illegal aliens on the vessel, Mompremier and Delva waited in the U.S. Virgin Islands to pick up and transport the aliens upon their arrival in St. John. The U.S. Coast Guard spotted the vessel carrying Edourre and his passengers, and attempted to intercept it. However, Edourre attempted to evade the Coast Guard. While attempting to evade the Coast Guard, the “Jesus La” ran aground and sank near Tortola, BVI, resulting in the death of at least eight individuals, including four children.
United States Attorney Sharpe commended the investigative work of ICE, HSI, and Assistant U.S. Attorney Kim L. Chisholm, who prosecuted this case.