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15 October 2014
Tennessee Prisoner Indicted for Anthrax HoaxRead the Press Release
Indictment Alleges That Defendant Mailed Threatening Letter Containing White Powder
To Sumner County District Attorney’s Office in Gallatin, TennesseeJustin Tyler Carter, 28, was indicted by a federal grand jury in Nashville on October 15, 2014 in a 2-count indictment charging him with sending threats through the U.S. Postal Service and conveying false information indicating the use or attempted use of Anthrax, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
According to the indictment, on April 14, 2014, while Carter was a prisoner at Riverbend Maximum Security Institute in Nashville, he prepared and sent a threatening letter to an Assistant District Attorney at the 18th Judicial District of Tennessee. In the letter, Carter threatened to kill the Assistant District Attorney and the public defender that represented him. The letter also contained white powder that Carter claimed was Anthrax.
“Threats involving the use of Anthrax cause significant disruption in the workplace and to government operations,” said U.S. Attorney David Rivera. “Such threats often exhaust public safety resources and cause needless harm to the public. For those who choose to engage in such conduct, the U.S. Attorney’s Office and our law enforcement partners will act swiftly to neutralize the threat, identify those responsible and bring them to justice.”
“This incident caused tremendous disruption to our office and to the people of Sumner County,” said Ray Whitley, Sumner County District Attorney. “Any threat made to any entity of our justice system, with the intent to disrupt or impede the administration of justice, or in retaliation for justice served, will always be met with a coordinated response that will insure those responsible are held accountable for their actions.”If convicted, Carter faces a maximum sentence of five years in prison and a $250,000 fine for each count.
This case was investigated by the FBI. Assistant United States Attorney Van Vincent is representing the government.
An indictment is merely an accusation and is not evidence of guilt. Defendants are presumed innocent unless and until proven guilty in a court of law.
Sovereign Citizen Who Retaliated Against Federal Officials by Filing False Liens Sentenced to Seven Years in PrisonRead the Press Release
Follow @SDILNewsAfter nearly two years, the federal prosecution of Cherron Marie Phillips, a/k/a “River Tali,” ended yesterday with Phillips being sentenced to a seven year prison term, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Phillips, a 43 year old Chicago native, was indicted back in November 2012 with knowingly filing false maritime liens against the property of a dozen current and former federal employees, including former United States Attorney Patrick Fitzgerald, in retaliation for their involvement in the investigation and prosecution of her brother, Devon Phillips. A jury in Chicago convicted her on 10 of 12 counts in June of this year.
During the trial, the government presented evidence that from 2006 to 2011, Phillips’s brother, Devon Phillips, had been investigated and prosecuted in the Northern District of Illinois for trafficking cocaine. Cherron Phillips regularly attended his court proceedings and filed documents in the record objecting to the jurisdiction of the court. She filed the liens – each in the amount of $100 billion – in the spring of 2011, several weeks after her brother was sentenced. The existence of the liens wasn’t discovered until later that summer, when one of the victims was attempting a real estate transaction.
During the execution of a federal search warrant, the FBI located the original liens locked inside a safe in Phillips’ master bedroom. The FBI laboratory in Quantico, Virginia was able to identify Phillips’ fingerprints on nine of the twelve liens. After her indictment, Phillips sent a letter to five of the victims, apologizing for what she termed “a serious mistake.”
To avoid the appearance of a conflict of interest, the trial was presided over by the Honorable Michael J. Reagan, now the Chief United States District Judge for the Southern District of Illinois. After accepting the jury’s verdict, Judge Reagan ordered Phillips detained pending sentencing, calling her “a paper terrorist” and citing his concerns for the safety of the community if she were allowed to remain on bond.
In a written memorandum he filed before sentencing, Judge Reagan noted that Phillips subscribes to the “sovereign citizen” ideology – a belief that the government is operating outside its jurisdiction and that by taking certain prescribed steps, citizens can live in this country without abiding by its laws. It was these “misguided beliefs” and “tortured logic,” he wrote, that formed the basis for her crimes. During the sentencing hearing, Phillips read aloud from a prepared statement and claimed the court did not have jurisdiction over her, prompting Judge Reagan to observe that even now, “she simply doesn’t get it.”
Although the United States Sentencing Guidelines recommended a range of 63 to 78 months in prison, Judge Reagan went above the Guidelines, imposing what he acknowledged was a “lengthy” 84-month sentence. “Society cannot tolerate” retaliation against government officials, he explained, citing the need for the sentence to promote respect for the law, provide just punishment, and afford adequate deterrence. Judge Reagan also pointed out that, shortly before trial, Phillips served him and the prosecutor with a lawsuit that claimed they were conspiring with the FBI and others to deprive her of her constitutional rights. Though the suit has yet to be filed, Judge Reagan viewed it as an attempt to obstruct justice and cited it as evidence that Phillips had not learned from her mistakes, noting that it made her prior acts of contrition “ring hollow.”
Federal law mandates that defendants must serve at least 85% of their prison sentences, thus Phillips will likely spend the better part of the next six years behind bars. After that, she will have three years of supervised release, during which time she is specifically prohibited from filing any claims, liens, or lawsuits without first obtaining the court’s permission. As part of her sentence, Phillips was ordered to pay a $1,000 fine and a $1,000 special assessment, as well as restitution to the victims for any expenses they might incur in clearing the liens. On a motion from the United States, the court also signed an order from the bench declaring the liens null and void, releasing them, and ordering that they be afforded “no legal force or effect whatsoever.” That order and a copy of the final judgment will be recorded in the public record in Cook County, Illinois, where the liens were originally filed.
U.S. Attorney Wigginton was grateful for the opportunity to conduct the prosecution and praised the sentence as a victory for justice. “Investigators, prosecutors, judges, courthouse personnel, and other public servants should not have to look over their shoulders for fear of something like this happening to them simply because they were doing their jobs,” Wigginton stated. “This sentence sends a strong message that those who work every day for the administration of justice deserve to do so without fear, threat, intimidation, or reprisal.”
The investigation of this case was conducted by the Chicago field office of the Federal Bureau of Investigation, acting in concert with the United States Marshals Service. The United States is also grateful for the assistance it received from the Office of the Cook County Recorder of Deeds. The case was prosecuted by Assistant U.S. Attorney Nathan D. Stump.
Slidell Man, Casey Thonn, Pleads Guilty to Defrauding<br /> the Deepwater Horizon Economic Claims Center<br /> Out of over $355,000Read the Press Release
The United States Attorney’s Office announced that CASEY THONN (“THONN”), 35, a resident of Slidell, Louisiana, pled guilty today to a two-count Bill of Information which charged THONN with wire fraud in connection with claims THONN filed with the Deepwater Horizon Economic Claims Center (“DHECC”). Specifically, both counts of the Bill of Information charged THONN with violating Title 18, United States Code, Section 1343.
According to court documents, on June 24, 2012, THONN submitted multiple claims with the Seafood Compensation Program administered by the DHECC based on losses THONN allegedly sustained as result of the April 2010 oil spill. Subsequently, in early November 2012, the DHECC notified THONN that he was eligible to receive approximately $1,750.36 for these claims.
In turn, on December 3, 2012, THONN submitted Requests for Reconsideration of his original eligibility notices requesting his compensation be recalculated based on a false Federal tax return THONN provided to the DHECC. In that false submission, THONN claimed he received $156,000 of gross revenue from commercial shrimping sales in 2009. This fraudulent submission increased the defendant’s compensation from $1,750.36 to a total of $357,002.35 for these claims. Finally, in March 2013, THONN received a total of $357,002.35 from the DHECC which was caused by his fraudulent submissions, resulting in an illegal gain of $355,251.99.
THONN faces a maximum term of imprisonment of 20 years, a $ 250,000 fine, and 3 years of supervised release following imprisonment. U.S. District Judge Stanwood R. Duval, Jr. will sentence THONN on January 28, 2015.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, flood, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at 866-720-5721, faxing 225-334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4904.This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Matt Coman.
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Sinaloa Cartel Member Found Guilty of Drug Trafficking Conspiracy -- Four Others Plead GuiltyRead the Press Release
CONCORD – Rafael Humberto Celaya Valenzuela, 41, formerly of Sonora, Mexico, was convicted following a jury trial of conspiracy to distribute controlled substances, including cocaine, heroin and methamphetamine, announced United States Attorney John P. Kacavas.
Celaya Valenzuela and his co-conspirators were members of the Sinaloa drug cartel, led by represented the Sinaloa Cartel, led by the notorious drug lord Joaquin Guzman-Loera, also known as “Chapo.” The cartel was seeking new cocaine distribution routes from South America to Europe, Canada and the United States. Beginning in early 2010 and continuing through August 2012, undercover FBI agents posing as members of a European organized crime syndicate met with the cartel representatives. Many of the meetings were audio and video recorded and portions of those recordings were played for the jury. The recordings showed Celaya Valenzuela and several co-conspirators attending meetings in Miami, Boston, Madrid, Spain, and in Portsmouth and New Castle, New Hampshire.
Celaya Valenzuela held himself out as an attorney and financial planner working on behalf of Chapo and the cartel. Manuel Gutierrez Guzman, a co-conspirator and first cousin of Chapo, held himself out as his cousin’s representative in the negotiations. The cartel representatives offered to deliver thousands of kilograms of cocaine by containerized cargo vessels to various ports on the northeastern seaboard of the United States and in Europe. They further represented that the cocaine would come from any number of source countries, including Bolivia, Panama, Belize and Colómbia. The deal was consummated by a face-to-face meeting with Chapo and several telephone calls in which he himself discussed details of the intended shipments.
On July 27, 2012, the conspirators delivered 346 kilograms of cocaine, more than 750 pounds worth millions of dollars, to a port in Algeciras, Spain. The cocaine was shipped via cargo container in boxes that purportedly held glassware. The FBI seized the cocaine, and Celaya Valenzuela, Gutierrez Guzman, Samuel Zazueta Valenzuela and Jesus Palazuelos Soto were arrested by Spanish law enforcement in Madrid on Aug. 7, 2012. The defendants were then extradited to New Hampshire.
Manuel Gutierrez Guzman, Samuel Zazueta Valenzuela and Jesus Palazuelos Soto pleaded guilty before trial. A sentencing hearing for Soto is scheduled for Dec. 22, 2014. Sentencing hearings for Manuel Gutierrez Guzman and Samuel Zazueta Valenzuela are scheduled for Jan. 15, 2015. Celaya Valenzuela’s sentencing is scheduled for Jan. 22, 2015. All the defendants face a mandatory minimum sentence of 10 years and a maximum sentence of life imprisonment.
The cartel’s leader, Joaquin “Chapo” Guzman-Loera, was arrested by Mexican authorities in February 2014. He is under indictment in multiple jurisdictions in the United States, including the District of New Hampshire.
“Today’s guilty verdict, together with the guilty pleas of the defendant’s co-conspirators, demonstrates the Department of Justice’s commitment to disrupting and dismantling international drug trafficking organizations wherever they seek to peddle their poison,” said U.S. Attorney Kacavas. “Whether along our southwest border, in major American cities, or in bucolic New Hampshire, we will use every law enforcement and prosecutorial tool at our disposal to bring international drug traffickers to justice. I want to thank our federal law enforcement partners, especially the FBI agents who went undercover at significant risk to their personal safety, and the Spanish National Police for their assistance in foiling this far-reaching scheme.”
The case was investigated by the Federal Bureau of Investigation, and the Justice Department’s Office of International Affairs provided assistance with the extradition. The case was prosecuted by First Assistant United States Attorney Don Feith.
Sinaloa Cartel Member Found Guilty of Drug Trafficking Conspiracy –Read the Press Release
Four Others Plead Guilty
CONCORD, NEW HAMPSHIRE – CONCORD, N.H. – Rafael Humberto Celaya Valenzuela, 41, formerly of Sonora, Mexico, was convicted following a jury trial of conspiracy to distribute controlled substances, including cocaine, heroin and methamphetamine, announced United States Attorney John P. Kacavas.
Celaya Valenzuela and his co-conspirators were members of the Sinaloa drug cartel, led by represented the Sinaloa Cartel, led by the notorious drug lord Joaquin Guzman-Loera, also known as “Chapo.” The cartel was seeking new cocaine distribution routes from South America to Europe, Canada and the United States. Beginning in early 2010 and continuing through August 2012, undercover FBI agents posing as members of a European organized crime syndicate met with the cartel representatives. Many of the meetings were audio and video recorded and portions of those recordings were played for the jury. The recordings showed Celaya Valenzuela and several co-conspirators attending meetings in Miami, Boston, Madrid, Spain, and in Portsmouth and New Castle, New Hampshire.
Celaya Valenzuela held himself out as an attorney and financial planner working on behalf of Chapo and the cartel. Manuel Gutierrez Guzman, a co-conspirator and first cousin of Chapo, held himself out as his cousin’s representative in the negotiations. The cartel representatives offered to deliver thousands of kilograms of cocaine by containerized cargo vessels to various ports on the northeastern seaboard of the United States and in Europe. They further represented that the cocaine would come from any number of source countries, including Bolivia, Panama, Belize and Colómbia. The deal was consummated by a face-to-face meeting with Chapo and several telephone calls in which he himself discussed details of the intended shipments.
On July 27, 2012, the conspirators delivered 346 kilograms of cocaine, more than 750 pounds worth millions of dollars, to a port in Algeciras, Spain. The cocaine was shipped via cargo container in boxes that purportedly held glassware. The FBI seized the cocaine, and Celaya Valenzuela, Gutierrez Guzman, Samuel Zazueta Valenzuela and Jesus Palazuelos Soto were arrested by Spanish law enforcement in Madrid on Aug. 7, 2012. The defendants were then extradited to New Hampshire.
Manuel Gutierrez Guzman, Samuel Zazueta Valenzuela and Jesus Palazuelos Soto pleaded guilty before trial. A sentencing hearing for Soto is scheduled for Dec. 22, 2014. Sentencing hearings for Manuel Gutierrez Guzman and Samuel Zazueta Valenzuela are scheduled for Jan. 15, 2015. Celaya Valenzuela’s sentencing is scheduled for Jan. 22, 2015. All the defendants face a mandatory minimum sentence of 10 years and a maximum sentence of life imprisonment.
The cartel’s leader, Joaquin “Chapo” Guzman-Loera, was arrested by Mexican authorities in February 2014. He is under indictment in multiple jurisdictions in the United States, including the District of New Hampshire.
“Today’s guilty verdict, together with the guilty pleas of the defendant’s co-conspirators, demonstrates the Department of Justice’s commitment to disrupting and dismantling international drug trafficking organizations wherever they seek to peddle their poison,” said U.S. Attorney Kacavas. “Whether along our southwest border, in major American cities, or in bucolic New Hampshire, we will use every law enforcement and prosecutorial tool at our disposal to bring international drug traffickers to justice. I want to thank our federal law enforcement partners, especially the FBI agents who went undercover at significant risk to their personal safety, and the Spanish National Police for their assistance in foiling this far-reaching scheme.”
The case was investigated by the Federal Bureau of Investigation, and the Justice Department’s Office of International Affairs provided assistance with the extradition. The case was prosecuted by First Assistant United States Attorney Don Feith.
Sex Offender Sentenced to 45 Years for Producing Child PornRead the Press Release
Oklahoma City, Oklahoma – Today, JEREMY DAVID EADES, 28, most recently of Minot, North Dakota, pled guilty to producing child pornography and was sentenced to serve 45 years in federal prison, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
At a hearing today in Oklahoma City, Eades pled guilty to producing child pornography in Pottawatomie County on November 29, 2012, using a 4-year-old child. During the same hearing, United States District Court Judge Robin Cauthron sentenced Eades to serve 45 years in prison, followed by 20 years of supervised release. He will also be required to register as a sex offender the rest of his life. Eades faced a heightened federal penalty due to a 2004 Oklahoma state court conviction for committing lewd acts with a child. Eades also had 2009 state conviction for failure to register as a sex offender. He was apprehended in Minot, North Dakota, on January 13, 2013, where he had traveled shortly after producing the child pornography in Pottawatomie County.
This case is the result of an investigation by ICE Homeland Security Investigations, the Minot North Dakota Police Department, the United States Marshals Service, and the Pottawatomie County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorneys Brandon Hale and Mark Yancey.
Saxton Woman Sentenced for Assisting Gun Store Burglar Avoid ApprehensionRead the Press Release
JOHNSTOWN, Pa. - A resident of Saxton, Pa., has been sentenced in federal court to five years of probation, the first twelve months of which must be satisfied by a condition of home confinement, ordered to pay restitution in the amount of $6399, and ordered to perform 500 hours of community service work on her conviction of being an accessory after the fact, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Kelley L. Foster, 24.
According to information presented to the court, on Jan. 28, 2013, Foster assisted Garrett G. Sherlock in his attempt to avoid apprehension by law enforcement authorities for the theft of firearms from Saxton Outdoor Supply, Inc.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pennsylvania State Police-Bedford Barracks for the investigation leading to the successful prosecution of Foster.
According to Mr. Hickton, Foster was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Rochester Man Charged in Armed Robbery of JewelerRead the Press Release
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Clarence Lambert, 22, was charged by criminal complaint with obstructing commerce by robbery, and possessing and brandishing a firearm in furtherance of a crime of violence. The robbery charge carries a maximum sentence of 20 years in prison and a fine of $250,000. The possession and brandishing of a firearm in furtherance of a crime of violence charge carries a minimum sentence of seven years in prison, a maximum of life, and a $250,000 fine.
Assistant U.S. Robert A. Marangola, who is handling the case, stated that Lambert is charged with participating in the home invasion robbery of a jeweler in the Town of Greece on October 7, 2014. According to the complaint, during the robbery, the jeweler and his wife were pistol whipped and locked in a closet. The perpetrators are accused of stealing in excess of $200,000 in cash, diamonds, and luxury watches. On October 14, 2014, the defendant was observed trying to pawn one of the stolen watches at a local pawn broker in Rochester. Police attempted to stop Lambert who fled and led officers on a foot chase. The defendant was caught hiding in a box in a garage on Frankfurt Street, and was later identified by the jeweler as one of the three armed robbers.The defendant made an initial appearance this morning before U.S. Magistrate Judge Marian W. Payson. He is being detained and is due back in court on Tuesday October 21, 2014 at 9:00 a.m.
The criminal complaint is the culmination of an investigation on the part of the Greece Police Department, under the direction of Chief Patrick Phelan, Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of James S. Higgins, Special Agent in Charge, New York Field Division, the Federal Bureau of Investigation, the New York State Police, under the direction of Major Scott Crosier, and the Rochester Police Department under the direction of Chief Michael Ciminelli.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Registered Securities Agent and Financial Advisor Pleads Guilty to Defrauding at Least 24 Victims for More Than $980,000Read the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of SUSAN ELIZABETH WALKER, 50, for abusing her position of trust as a registered securities agent and financial advisor to steal nearly $1 million from at least 24 victims. WALKER, who was charged by information on September 22, 2014, pleaded guilty today before Chief Judge Michael Davis in United States District Court in Minneapolis.
“The theft of investment funds by trusted financial advisors erodes the public’s confidence in the market,” said U.S. Attorney Luger. “Prosecutors in my Office, in collaboration with our state and federal law enforcement partners, will continue to investigate and prosecute aggressively those who abuse their positions of trust to steal from clients, and as in this case, endanger their retirement security.”
According to the defendant’s guilty plea and documents filed in court, from October 2008 until March 2013, WALKER provided financial planning services to several clients through her affiliation with Ameriprise Financial Inc. She was a securities agent registered with the Minnesota Department of Commerce, and a financial advisor registered with the Financial Industry Regulatory Authority (FINRA). WALKER stole from her clients by misusing her access to several victim retirement accounts and causing checks to be drawn from victim accounts and deposited into accounts that she controlled.
According to documents filed in court and statements made on the record in court, WALKER also opened investment brokerage accounts in her own name, and in the names of several victim- clients without their knowledge or authorization, which she used to conceal money stolen from other clients. She caused money to be withdrawn from retirement accounts belonging to clients and deposited in those brokerage accounts, which she took for her own personal use. For example, on September 18, 2009, WALKER caused a check for $75,000 to be issued from a victim account and deposited into an account controlled by WALKER. The defendant used funds stolen as part of the fraud scheme to pay for, among other things, private school tuition and for her own expensive vacation travel.
According to her guilty plea, in addition to stealing from her clients, WALKER also failed to report any of the funds obtained through fraud on her tax returns. The total tax loss on her unreported income is approximately $325,000.
This case is the result of an investigation conducted by the Internal Revenue Service-Criminal Investigations, Federal Bureau of Investigation, and the Minnesota Department of Commerce.
Assistant U.S. Attorney Timothy Rank prosecuted the case.
Defendant Information: SUSAN ELIZABETH WALKER, 50
Plymouth, Minn.
Convicted: • Mail Fraud, 1 count
• Tax Evasion, 1 count###
Psychic Reader Pleads Guilty to Stealing $16 Million from Oregon ManRead the Press Release
PORTLAND, Ore. - Rachel Lee, 43 of Canby, Oregon, faces up to nine years in federal prison after pleading guilty to a scheme to defraud a victim of approximately $16 million dollars. On October 14, 2014 before U.S. District Court Judge Robert E. Jones, Lee pleaded guilty to one count of conspiracy to commit wire fraud, one count of conspiracy to commit money laundering, and one count of criminal failure to file personal income taxes.
By her guilty plea, defendant Lee admits that she conspired with at least one other person to make false or misleading promises which caused the victim to part with his money and to provide other personal information to defendant. Based on false statements from the defendant, the victim granted defendant access to and control of his bank accounts. Additionally the defendant told the victim he needed to sell his business holdings in order to pay for taxes due and owing.
Defendant Lee further admitted that she conspired with others to spend the proceeds of the fraud on items including but not limited to the July 27, 2012 purchase of a 2012 Bentley and a 2012 Ferrari.
The defendant is in custody and sentencing is scheduled for January 20, 2015. By the terms of Lee’s plea agreement, she will be sentenced to no less than 87 months and no more than 108 months in prison and ordered to pay full restitution. She has also agreed that assets seized by agents during the course of the investigation will be forfeited and the proceeds provided to the victim to offset restitution. Seized assets in this case include $1.9 million in cash, multiple vehicles, and ten parcels of property.
This case was investigated by the Internal Revenue Service, Criminal Investigations and the Canby Police Department with assistance from the Social Security Administration - Office of Inspector General, Multnomah County Sheriff’s Office, Portland Police Department, and the Oregon Department of Justice. The case is being prosecuted by Assistant U.S. Attorney Donna Maddux and Assistant U.S. Attorney AnneMarie Sgarlata.
Providence Woman to Face Civil Violation Hearing for Allegedly Tossing Powdery Substance in U.S. Attorney’s Office Reception Area Resulting in Providence Fire Department Hazmat ResponseRead the Press Release
PROVIDENCE, R.I. –Coalatta A. Cooper, 55, of Providence, will be summonsed to U.S. District Court in Providence, on a date to be determined by the court, to answer to a civil violation charging her with disturbance on federal property, announced United States Attorney Peter F. Neronha.
Ms. Cooper is being summonsed as a result of an incident inside the lobby area of the U.S. Attorney’s Office on Wednesday, where it is alleged that Ms. Cooper intentionally spread a white powdery substance which led to the evacuation of the U.S. Attorney’s Office and a response by the Providence Fire and Police Departments. Ms. Cooper was immediately detained by a Federal Protection Service contract security guard assigned to the U.S. Attorney’s Office.
Preliminary test results showed the powdery substance to be non-toxic. Ms. Cooper, the Federal Protection Service contract security guard and two Federal Protection Service officers were transported to Rhode Island Hospital as a precautionary measure to ensure they had not been contaminated by a toxic substance.
A preliminary investigation indicates that Ms. Cooper came to the U.S. Attorney’s Office to discuss a personal legal matter.
United States Attorney Peter F. Neronha commented, “I want to thank the Providence Fire Department, including the Hazmat Team, the Providence Police Department and the Federal Protection Service for responding so quickly and professionally, and for assisting our Office on this challenging day.”
Disturbance on federal property, a civil violation, is punishable by a statutory penalty of not more than 30 days in prison, a fine of up to $5,000, or both.
A civil violation is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair hearing in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly. The matter was investigated by the Federal Protection Service, with the assistance of the FBI, the Providence Police Department and the Rhode Island State Police.
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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]Pittsburgh Man Pleads Guilty in Conspiracy to Defraud BanksRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, pleaded guilty in federal court to a charge of conspiracy to commit bank fraud, United States Attorney David J. Hickton announced today.
Herbert Butler, Jr., 27, of Pittsburgh, PA, pleaded guilty to one count before United States District Judge Mark Hornak.
In connection with the guilty plea the court was advised that, beginning in 2013, Butler and his co-defendant Eric Bates conspired to steal bank account information belonging to an account holder at Citizens Bank in Pittsburgh, information they used to create accounts at other banks to make multiple withdrawals of cash.
Judge Hornak scheduled sentencing for Feb. 11, 2014 at 2 p.m. The law provides for a maximum total sentence of not more than 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Western Pennsylvania Financial Crimes Task Force (WPFCTF) conducted the investigation that led to the successful prosecution of Butler. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Painting Contractor Sentenced to Prison for Paying Bribes to West Haven Housing Authority OfficialRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that HARRY P. MICONI, 78, of West Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to six months of imprisonment, followed by two years of supervised release, the first six months of which MICONI must spend in home confinement, for bribing the former executive director of the West Haven Housing Authority.
According to court documents and statements made in court, MICONI owned and operated several painting and contracting businesses in West Haven, including P and K Contractor LLC. Between January 2007 and February 2012, MICONI and his business made more than $800,000 in corrupt payments to Michael Siwek, the executive director of the West Haven Housing Authority, and to Four Star Development Company LLC, an entity personally owned and controlled by Siwek. In return, Siwek directed approximately $2.8 million in business for or with the West Haven Housing Authority and its two affiliated instrumentalities, Meadow Landing and Spring Heights, to MICONI and his businesses. Meadow Landing and Spring Heights are two housing complexes that are owned and managed, in part, by the West Haven Housing Authority.
As part of his sentence, MICONI was ordered to pay $862,563 in restitution.
On November 6, 2013, MICONI pleaded guilty to one count of conspiracy to commit bribery in connection with a program receiving federal funds.
On September 4, 2014, SIWEK pleaded guilty to bribery and tax evasion charges stemming from his receipt of approximately $1.5 million in bribes from MICONI and others while he was employed by the West Haven Housing Authority. He awaits sentencing.
U.S. Attorney Daly stated that the investigation is ongoing.
This matter is being investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Federal Bureau of Investigation, and Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Sarah Karwan.
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(203) 821-3722 [email protected]Ohio Doctor Pleads Guilty to Two Drug-related FeloniesRead the Press Release
Charleston, W.Va. - United States Attorney Booth Goodwin announced that Robert Timothy Hogan II, D.O., pled guilty today to two drug-related felonies. Hogan, 32, from Coolville, Ohio, faces up to nine years imprisonment when he is sentenced on January 12, 2015.
At the plea hearing, Hogan admitted that he travelled between Ohio and Wood County, West Virginia and that he used his cell phone to facilitate an arrangement in which he wrote prescriptions for controlled substances to an individual who was not his patient and for which there was no legitimate medical purpose in return for receiving half of the pills when the prescriptions were filled. Between January 2013 and February 2014, Hogan wrote more than 160 illegal prescriptions for more than 17,000 pills.
The case was investigated by the West Virginia State Police and the Federal Bureau of Investigation. The case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill and heroin trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Nottingham Man Sentenced to 15 Years in Prison for Possessing FirearmRead the Press Release
CONCORD, NEW HAMPSHIRE – Joshua Fields, 32, of Nottingham, was sentenced in United States District Court for the District of New Hampshire to 15 years in prison for being a felon in possession of a firearm, announced United States Attorney John P. Kacavas.
Fields pleaded guilty to the charge on July 3, 2014. Fields admitted that on November 19, 2013, he and others participated in a burglary in Candia, New Hampshire. Among the items stolen during the burglary were six firearms. A few days later, Fields and two accomplices entered the Kittery Trading Post in Kittery, Maine, where they attempted to pawn one of the stolen firearms. As a convicted felon, it was unlawful for Fields to possess a firearm.
United States Attorney John P. Kacavas praised the efforts of federal, state and local law enforcement in this case and said “ensuring that persons who violate the prohibition against possessing firearms are brought to justice is a central mission of my office. We will continue to work closely with our law enforcement partners to enforce federal gun laws.”
This investigation involved the cooperative efforts of federal, state and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Candia Police Department, the New Hampshire State Police, the Kittery Police Department, the Rockingham County Attorney’s Office and the District Attorney’s Office in York County, Maine. The case was prosecuted by Assistant U.S. Attorney John J. Farley.Nine Alleged Members of the Jenifer Drug Trafficking Organization Charged by Indictment and Implicated in A 2012 MurderRead the Press Release
82 Kilograms of Cocaine Having a Street Value of $8.2 Million Seized During the Investigation
Baltimore, Maryland - A federal grand jury has indicted nine defendants – seven men and two women – who are alleged to be members of the Jenifer drug trafficking organization (Jenifer DTO) for conspiring to distribute kilograms of cocaine in the Baltimore metropolitan and Woodbridge, Virginia areas. The indictment seeks the forfeiture of $15 million. The indictment was returned on September 3, 2014 and unsealed on October 9, 2014 upon the arrests of defendants.The search warrant affidavit was unsealed today after the execution of 25 search warrants. During the searches, law enforcement recovered 27 kilograms of cocaine with a street value of $3 million; several hundred thousand dollars in cash recovered from the residences of some of the defendants; over $2 million in jewelry, including a 16 carat diamond ring; and luxury vehicles.
“The indictment and affidavit describe how drug organizations transport cocaine to Baltimore and move cash out of the city by relying on a network of suppliers, couriers, distributors, dealers and money launderers, and by using vehicles with hidden compartments,” said U.S. Attorney Rod J. Rosenstein. “The affidavit also explains how law enforcement agents catch drug dealers by using physical and electronic surveillance, wiretaps and cell phone data.”
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Commissioner Anthony W. Batts of the Baltimore Police Department; and Chief James W. Johnson of the Baltimore County Police Department.The arrests and searches were the result of coordinated operations by the DEA, IRS – Criminal Investigation, Baltimore City Police Department and Baltimore County Police Department, with the assistance of agents from the U.S. Marshals Service and the Bureau of Alcohol, Tobacco and Firearms.
The indictment charges the following defendants, all of whom are presently in federal custody:
Kedrick Arnold Jenifer, a/k/a “Ricky Jenifer,” “James Howard Collier, Jr.” and “Rick,” age 43, of
Bowie, Maryland; Tyrone Allen, age 42, of Bel Air, Maryland; Brooke Renee Lunn, a/k/a “Brooke Thomas,” and “Brooke Renee,” age 48, of Baltimore; Tracy Muse, a/k/a “Kimberly Scott,” age 41, of Pearland, Texas; Thomas Simmons, age 37, of Hampton, Virginia; Andre Brewer, age 35, of Elkridge, Maryland; Michael Williams, age 40, of Baltimore; Kermit Clark, age 44, of Baltimore; and
William Hegie, age 54, of Baltimore.All of the defendants were arrested last week Thursday, October 9, 2014, except for Michael Williams who turned himself in on Friday, October 10th.
According to an affidavit in support of search warrants, law enforcement started investigating the Jenifer DTO in March 2013. The Jenifer DTO is a Baltimore-based drug trafficking and money-laundering organization with ties to Houston, Texas; Staten Island, New York; and Woodbridge, Virginia.
From September 2012 to September 2014, the Jenifer DTO allegedly obtained kilogram-quantities of cocaine from Houston and distributed the cocaine throughout the Baltimore area and in Woodbridge, Virginia.
"The arrest of these alleged Drug Trafficking Organization (DTO) members emphasizes the proactive work that the Drug Enforcement Administration and our law enforcement partners undertake every day to stop the flow of drugs from entering the Baltimore metropolitan area,” stated Gary Tuggle, Assistant Special Agent in Charge of the DEA Baltimore District Office. “DEA’s investigation of this DTO was a long-term, highly complex effort which used a myriad of investigative techniques to expose this DTO. Additionally, by hitting drug trafficking organizations where it hurts them most and seizing drug proceeds, in this case cash, vehicles and properties, we are crippling their ability to ever return.”
Kedrick Jenifer is the alleged leader of the drug organization. He directed the collection and transportation of money from Baltimore to Houston, and the transportation of cocaine from Houston to Baltimore.
The affidavit alleges that the drug organization concealed money and cocaine in hidden compartments in vehicles that were driven between Baltimore and Houston. The vehicles were sometimes transported on car carriers. Cocaine and cash were stored at the homes of the defendants, their family members, and at a business complex called RCH Plaza on West Franklin Street in Baltimore. Vehicles with hidden compartments were brought to the business complex, where DTO members concealed large amounts of cash or cocaine.
The affidavit alleges that in October of 2009, while traveling from Baltimore to California, Jenifer and Tyrone Allen stopped in Phoenix, Arizona. At the Phoenix airport, police seized $97,020 and three cell phones from Jenifer, and $70,680 and eight cell phones from Allen.
On September 27, 2012, the affidavit alleges, Brooke Lunn and a man named John Moore were arrested near Houston with approximately 30 kilograms of cocaine concealed in a vehicle. Tracy Muse, believed to be a girlfriend of Jenifer, posted bond for the release of Lunn and Moore. Lunn and Moore returned to Maryland.
On October 20, 2012, Moore was fatally shot in the back of the head in Baltimore. According to the affidavit, his murder is believed to be related to the cocaine seizure.
On July 2, 2013, Arkansas Highway Patrol searched a vehicle transported by the Jenifer DTO from Baltimore to Houston by car carrier, while it was being driven back to Baltimore. From a hidden compartment in the rear of the vehicle, 23.8 kilograms of cocaine were seized. Following the seizure, Jenifer allegedly returned to using Lunn to transport cash and cocaine between Baltimore and Houston. Since August 2013, Lunn is believed to have made 30 trips between the cities, transporting cash and cocaine.
In June 2014, agents saw Simmons give Jenifer a black bag in a parking lot in Woodbridge, Virginia. Virginia State Police pulled Simmons over 60 miles away and seized two kilograms of cocaine from a black bag concealed in a hidden compartment in Simmons’ vehicle.
Jenifer owns World Fed Apparel, Inc., a clothing store in Baltimore. Jenifer is also a co-owner of Flavor Factory, LLC, which is believed to own an ice cream franchise in Baltimore.
Jenifer and his companies currently own the following vehicles:
2013 Rolls Royce Ghost valued at $296,000, 2014 Ferrari 458 Italia valued at $271,000, 2014 BMW M6 valued at $113,925, 2015 Ford F-250 truck valued at $56,000,
and a 2012 Acura ZDX, a 2010 Honda Crosstour, a 2006 Acura and a 2009 GMC Denali truck. Jenifer kept some high end vehicles at a storage unit in Laurel, Maryland. Brewer allegedly bought a 2014 Mercedes S63 AMG, worth approximately $156,900.
The defendants face a maximum sentence of life in prison for conspiring to distribute and possess with intent to distribute cocaine.
The defendants had their initial appearances in U.S. District Court in Baltimore, Virginia and Texas last week. Hegie and Clark consented to detention. A detention hearing was held on October 14, 2014, in federal court in Baltimore for Lunn and she is detained. A detention hearing in federal court in Baltimore is scheduled for Jenifer, Allen and Brewer on October 16, 2014 at 11:00 a.m., 10:30 a.m. and 1:30 p.m., respectively, and for Muse on October 17 at 10:00 a.m. Williams is detained until arrangements are completed for his release on home detention with electronic monitoring. Simmons is in custody in the Eastern District of Virginia. No date has been set for a hearing for him in Maryland.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the DEA, IRS Criminal Investigation and Baltimore City and County Police Departments for their work in the investigation. Mr. Rosenstein commended the U.S. Marshal Service and Bureau of Alcohol, Tobacco and Firearms for their assistance in the execution of the search and arrest warrants, and the Virginia State Police who assisted with the June 2014 seizure of cocaine.
Mr. Rosenstein thanked Assistant United States Attorneys John W. Sippel, Jr. and Scott A. Lemmon, who are prosecuting the case, and expressed his appreciation to the United States Attorney’s Offices for the Southern District of Texas and the Southern District of New York for their assistance in the prosecution of this Organized Crime Drug Enforcement Task Force Case.
New York Man Pleads Guilty in Manhattan Federal Court to Six Counts of Illegally Possessing FirearmsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ANTONIO OLMEDA of New York, New York, pled guilty today in Manhattan federal court to all six counts charged in the Indictment against him: three counts of being a convicted felon in possession of various firearms, two counts of possessing unregistered machine guns and one count of possessing an unregistered short-barreled shotgun. OLMEDA was arrested in December 2011 in connection with his alleged attempt to shoot two police officers with the New York City Police Department (“NYPD”). He pled guilty today before U.S. Magistrate Judge Debra Freeman.
Manhattan U.S. Attorney Bharara said: “Antonio Olmeda, a convicted felon, possessed a vast arsenal, including numerous automatic firearms, multiple machine guns and a sawed-off shotgun. The law prohibited Olmeda from having this kind of firepower at his disposal in light of his felony conviction. Our Office and our law enforcement partners remain committed to keeping deadly weapons out of the hands of convicted criminals.”
As alleged in the Indictment, OLMEDA illegally possessed the following firearms:
- Springfield Armory Ultra Compact .45 caliber semi-automatic handgun
- Taurus 85 Ultralite .38 caliber revolver
- Olympic Arms PCR03 .223 caliber fully-automatic rifle
- Smith & Wesson .40 caliber semi-automatic pistol
- Beretta 92SB Compact 9mm Luger semi-automatic pistol
- Cobray Industries M-11 9mm Luger fully-automatic pistol
- Remington model Mohawk 600 .308 caliber rifle
- Roggio Arsenal model RA-15 rifle receiver/frame
- Interarms rifle
- Three Springfield Armory model 1911A1 .45 caliber pistols
- Sig Sauer model SP 2022 9mm caliber pistol
- Taurus model PT140 Millenium .40 caliber pistol
- Smith & Wesson model 4006 .40 caliber pistol
- Star Bonifacio Echeverria model Firestar 9mm caliber pistol
- Charter Arms model Police Undercover .32 caliber revolver
- Walther model PPK/S .380 caliber pistol
- Vulcan Arms model V15 7.62x39mm machine gun
- Norinco AK-type 7.62x39mm machine gun
- Mossberg model 500A 12 gauge shotgun
OLMEDA, 56, from New York City, pled guilty to three counts of being a convicted felon in possession of various firearms, two counts of possessing unregistered machine guns, and one count of possessing an unregistered short-barreled shotgun. Each of these counts carries a maximum sentence of 10 years in prison. OLMEDA is scheduled to be sentenced by U.S. District Judge Richard M. Berman on January 13, 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.
OLMEDA is separately charged by the state in Queens County, New York, with two counts of attempted murder in the first degree, two counts of attempted assault on a police officer with a deadly weapon, one count of criminal possession of a weapon in the second degree, and two counts of attempted assault in the first degree, all arising out of his attempt to shoot two NYPD police officers in Queens, New York, on or about December 2, 2011. The state charges are merely accusations, and OLMEDA is presumed innocent of those state charges unless and until proven guilty.
Mr. Bharara praised the outstanding efforts of the Federal Bureau of Investigation’s Manhattan-based Joint Terrorism Task Force, which principally consists of agents and detectives of the FBI and the NYPD; the United States Bureau of Alcohol, Tobacco, Firearms and Explosives; and the United States Marshals Service. Mr. Bharara also thanked the NYPD and the Yonkers Police Department for their ongoing assistance.
The case is being handled jointly by the Office’s Violent and Organized Crime Unit and Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Shane T. Stansbury, Harris M. Fischman, Michael D. Maimin, and John P. Cronan are in charge of the prosecution.
New Orleans Man, Jeremy Shawn Reason, Pleads Guilty to Child Pornography ChargesRead the Press Release
U.S. Attorney Kenneth Polite announced that JEREMY SHAWN REASON, age 34, of New Orleans, Louisiana, pled guilty today for crimes involving the sexual exploitation of children.
According to court documents, REASON knowingly accessed child pornography with the intent to view images depicting the sexual victimization of minors. REASON had been in the custody of the Bureau of Prisons since his previous conviction in 2008 for Possession of Child Pornography. At the time of his arrest in April 2013, REASON was residing at a halfway house.
As a result of REASON’s previous conviction, he faces a mandatory term of imprisonment of not less than 10 years and a maximum of 20 years followed by up to a lifetime term of supervised release, and a $250,000 fine.
Sentencing before U.S. District Judge Stanwood R. Duval, Jr. will be held on January 14, 2015.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
U.S. Attorney Polite praised the work of the U. S. Department of Homeland Security, HSI. Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U. S. Attorney Brian M. Klebba is in charge of the prosecution.
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Nevada Man Pleads Guilty to Receiving Child Porn, Faces 12 Years in PrisonRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that Nevada, Mo., man pleaded guilty in federal court today to receiving child pornography after he assumed a false online identity as a woman and persuaded a teenage girl in Georgia to send him pornographic images of herself.
Curtis Bowman, 43, of Nevada, pleaded guilty before U.S. Magistrate Judge David P. Rush to receiving child pornography over the Internet.
Law enforcement officers in Cobb County, Ga., were contacted by the victim’s mother. She told officers that her 16-year-old daughter, identified as ”Jane Doe,” had been engaged in sexually explicit e-mail communications with an individual identifying herself as “Amanda Toben.” Jane Doe confirmed that she met “Amanda Toben,” whom she believed was a female resident of Missouri, in an online chat room sometime in January 2014. They began exchanging e-mails and within a matter of days, the e-mail exchanges became sexual in nature. Jane Doe ultimately sent a number of images depicting herself engaged in sexually explicit conduct to “Toben.”
Georgia law enforcement officers identified Bowman and on Friday, March 7, 2014, local law enforcement officers executed a search warrant at Bowman’s residence, where he was arrested. Investigators discovered a number of sexually explicit images of Jane Doe on Bowman’s computer.
Under the terms of today’s plea agreement, the court will sentence Bowman to 12 years in federal prison without parole and may also order Bowman to pay restitution to the victim. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James Kelleher. It was investigated by the Vernon County, Mo., Sheriff’s Department, the Southwest Missouri Cyber Crimes Task Force, the FBI and the Cobb County, Ga., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Naples Man Sentenced for Illegal Cat HuntRead the Press Release
COEUR D'ALENE - Tod S. Navarro, 50, of Naples, Idaho, was sentenced to five years of probation and a five year hunting ban for violation of the Lacey Act, U.S. Attorney Wendy J. Olson announced. United States District Judge Edward J. Lodge also ordered Navarro to serve 50 hours of community service. He pleaded guilty to the charge on April 28, 2014.
According to the plea agreement, Navarro admitted that he and his co-defendants took three North Dakota men hunting for mountain lions. The North Dakota hunters did not have Idaho permits or tags. Navarro and two co-defendants put their tags on the mountain lions killed by the North Dakota hunters.
The case was investigated by Idaho Fish and Game and U.S. Fish and Wildlife Service (USFW).
Mobile County Man Sentenced to 84 Month Incarceration for Possessing Firearms After Felony ConvictionRead the Press Release
The United States Attorney, Kenyen R. Brown, announces that Kawarren D. Pugh, a 36 year old resident of Mobile, Alabama was sentenced today. Mr. Pugh pled guilty to two violations of the felon in possession statute. His first guilty plea was on June 19, 2014, and the second one was on August 18, 2014. He was sentenced to a concurrent term of 84 months incarceration followed by three years of supervised release. Prior to the guilty pleas, Mr. Pugh had been convicted of two felonies.
Special Agents of the Bureau of Tobacco, Firearms and Explosives along with the United States Marshall’s Service investigated the cases and presented it to the U.S. Attorney's Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Middlesex, N.J., Woman Pleads Guilty to Conspiring to Defraud the U.S. Treasury Department of Nearly $1 MillionRead the Press Release
TRENTON, N.J. - A woman from Middlesex, New Jersey, today admitted defrauding the United States Department of the Treasury of $940,000 in income tax return checks, U.S. Attorney Paul J. Fishman announced today.
Rosemary Valerio, 32, pleaded guilty today before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging her with one count of conspiracy to defraud the United States.According to documents filed in the case and statements made in court:
Valerio and other conspirators obtained and cashed stolen income tax refund checks, using the illicit cash proceeds for their personal benefit. Valerio provided Treasury checks to Rosanna Rodriguez, the head teller at a Perth Amboy, New Jersey bank, who then negotiated the checks against unknowing third-party bank accounts. At her plea hearing, Valerio admitted that the total loss from the conspiracy was approximately $940,000.
The count of conspiracy to defraud the United States carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing is currently scheduled for Jan. 22, 2015.
Rodriguez pleaded guilty to one count of conspiracy to defraud the United States on Sept. 22, 2014 and is scheduled for sentencing on Jan.12, 2015.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees, with the investigation.The government is represented by Assistant U.S. Attorney Danielle M. Corcione of the U.S. Attorney’s Office Criminal Division in Newark, New Jersey.
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Defense counsel: Karen Fernandez Esq., New York
Valerio, Rosemary Information
Mexican National Sentenced to Federal Prison for Trafficking Cocaine in Anthony, N.M.Read the Press Release
ALBUQUERQUE –Alejandro Lopez, 41, a Mexican native who resides in Anthony, N.M., was sentenced today in federal court in Las Cruces, N.M., to 60 months in federal prison for his cocaine trafficking conviction. Alejandro Lopez, a legal permanent resident, will be deported after he completes his prison sentence.
Alejandro Lopez and his brother Eddy Lopez, 38, were arrested on Nov. 15, 2012, on a criminal complaint charging them with trafficking in cocaine. On March 29, 2013, Eddy Lopez entered a guilty plea to a felony information charging him with possession of cocaine with intent to distribute. Alejandro Lopez was indicted on that same charge on June 19, 2013.
Alejandro Lopez was found guilty on Sept. 18, 2013, by a federal jury after a three-day trial. The evidence at trial established that in late Sept. 2012, a confidential informant working under the supervision of the FBI and the Las Cruces/ Doña Ana County Metro Narcotics Agency had several telephone conversations with Eddy Lopez during which the informant negotiated to facilitate the purchase of a kilogram of cocaine for $22,000 from Eddy Lopez on behalf of a buyer. On Sept. 27, 2012, law enforcement officers conducted surveillance while Alejandro Lopez and Eddy Lopez completed the drug deal by delivering a package containing 794 grams of cocaine to the informant. Both men were arrested on local charges at that time. The local charges subsequently were dismissed in favor of federal prosecution.
A sentencing hearing for Eddy Lopez has yet to be set. He faces a prison sentence of not less than five years and not more than 40 years followed by at least four years of supervised release.This case was investigated by the Las Cruces office of the FBI and the Las Cruces/Doña Ana County Metro Narcotics Agency. The case is being prosecuted by Assistant U.S. Attorneys Maria Y. Armijo and Edwin Garreth Winstead III of the U.S. Attorney’s Las Cruces Branch Office.
Louisville Felon Sentenced to Seven Years in Prison for Bank Fraud and Illegal Possession of A FirearmRead the Press Release
– Accomplices cashed more than 300 counterfeit checks totaling $192,000
– At least 47 area business affectedLOUISVILLE, Ky. – A Louisville felon was sentenced to seven years in prison by Senior Judge Joseph H. McKinley Jr., in U.S. District Court this week, for making more than 300 counterfeit checks totaling approximately $192,000 and recruiting 15 co-conspirators to pass the counterfeit checks at businesses and financial institutions in Jefferson County and the surrounding area announced David J. Hale, United States Attorney for the Western District of Kentucky.
“Fraud like this harms financial institutions, businesses, and other innocent victims whose identities are sometimes used to perpetuate the crime,” stated U.S. Attorney David J. Hale. “I am pleased that the partnerships we have forged between federal and local law enforcement have led to this prosecution and substantial sentence for these serious offenses.”
Craig Hutzell, United States Secret Service Acting Special Agent in Charge stated, “The Secret Service and its partners in the Kentucky Electronic Crimes Task Force will vigorously investigate and pursue prosecution of suspects in these cases that affect our community. We will work to recover assets in order to make victims whole and see that potential victims are protected. The successful conclusion of this case is a credit to all our partners in the law enforcement, academic, corporate, and judicial arenas.”
Phillip Walker, age 41, was sentenced Tuesday, October 14, 2014 after pleading guilty to 26 charges in two federal indictments including one count of conspiracy, 19 counts of bank fraud, and one count of possession of a firearm by a convicted felon. Walker admitted that from July 2011 through August 2013, he manufactured approximately 300 counterfeit checks totaling over $192,000. Walker recruited approximately 15 co-conspirators, to pass the checks and would split the proceeds of the checks with the co-conspirators after the checks were successfully negotiated. Walker also caused an unnamed co-defendant to open bank accounts at Your Community Bank and U.S. Bank for the purpose of negotiating counterfeit checks. During the course of the fraud, more than 47 area retail outlets were affected. Walker made the counterfeit checks using a computer and two printers, at his home located on West Kentucky Street in Louisville. In furtherance of the crime, Walker admitted to buying stolen driver’s licenses or state identification cards and would make the counterfeit check payable to that person’s name. Walker would then attempt to recruit people who looked similar to the photo of the person on the stolen driver’s license or state identification card to cash the counterfeit check.
Further, on August 16, 2013, in Jefferson County, during the execution a federal search warrant law enforcement determined that Walker knowingly possessed an American Tactical C45 pistol and eight rounds of .45 caliber ammunition, as well as numerous rounds of assorted ammunition. Walker had previously been convicted of a crime punishable by a term of imprisonment exceeding one year and consequently was prohibited from possession of a firearm. Walker had multiple previous convictions for, among other things, manufacturing and passing counterfeit checks.
This case was prosecuted by Assistant United States Attorney Bryan R. Calhoun and Special Assistant Attorney Sungtae Kang and was investigated by the Louisville Metro Police Department, the United States Secret Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Local Tax Preparer Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – JENNIFER WALTER pled guilty to multiple charges of making false, fictitious and fraudulent claims to the U.S. Department of the Treasury in connection with the filing of false tax returns and the creating of false W-2 forms.
Walter was employed as a tax return preparer for Liberty for All Tax Service in St. Louis, Missouri. For tax years 2010 through 2012, Walter assisted clients with filing fraudulent tax returns with the Internal Revenue Service. Walter also made false claims for refunds on her taxes for the tax years 2008 through 2010. Walter created false W-2 forms in which she claimed false wages and withholdings for herself and others. The false information reported to the IRS allowed Walter to claim various tax credits for her clients, including child tax credits and the earned income credit, to which her clients otherwise would not have been entitled. Walter’s fraudulent conduct resulted in the payment of approximately $114,457 in refunds by the IRS.
"Refunds are issued to taxpayers who are entitled to them," said Sybil Smith, Special Agent in Charge of IRS-Criminal Investigation. "We will aggressively pursue those who prepare false claims for refunds for the purpose of enriching themselves and stealing from the U.S. Treasury."
Jennifer Walter, St. Louis, MO, pled guilty to five felony counts of making false claims upon a department of the United States, before United States District Judge Henry Autrey. Sentencing has been set for January 12, 2015.Each count of making false claims carries a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by IRS-Criminal Investigation, the Missouri Department of Revenue, Criminal Tax Investigation Bureau and University City Police Department. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney's Office.
Konn Sentenced for Child Pornography OffensesRead the Press Release
Retired State Worker’s Child Pornography Collection Included
Thousands of Images and Over 800 MoviesALBANY, NEW YORK – STEPHEN J. KONN, 64, of Clifton Park, New York, was sentenced today by the Honorable Mae A. D’Agostino to 120 months in federal prison followed by a 25- year term of supervised release, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent-in-Charge of the Albany Division of the Federal Bureau of Investigation. The sentence follows KONN’s April 30, 2014 conviction, after a three-day federal jury trial, for distribution of child pornography, receipt of child pornography, and possession of child pornography.
The evidence presented at trial showed that KONN, a retired New York State Department of Taxation and Finance employee, used a peer-to-peer file trading program to distribute child pornography to an undercover FBI agent via the Internet. A subsequent search of KONN’s Clifton Park residence uncovered a computer containing over 4,000 images and 800 videos of child pornography, and evidence that KONN had been trading child pornography over the Internet for years.
Noting that “what went on here is not victimless,” Judge D’Agostino described KONN as leading a double life, and the materials he traded as “unspeakable” and “horrific in nature.”
This prosecution resulted from an investigation conducted by the Federal Bureau of Investigation, Albany Division. The case was prosecuted by Assistant United States Attorney Wayne A. Myers.
KC Man Sentenced for Firearm, Crack Cocaine after Leading Police on 100 Mph ChaseRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man who was arrested after leading police officers on a 100-miles-per-hour chase in Independence, Mo., was sentenced in federal court today for illegally possessing a firearm and crack cocaine.
Brad L. Akins, 27, of Kansas City, was sentenced by U.S. District Judge Dean Whipple to six years and six months in federal prison without parole.
On April 25, 2014, Akins pleaded guilty to possessing crack cocaine with the intent to distribute and to possessing a firearm in furtherance of a drug-trafficking crime.
Akins was arrested on March 30, 2013, after leading Independence police officers on a high-speed chase. An officer attempted to stop Akins’s vehicle for a speeding violation, but Akins fled, leading officers in pursuit at speeds exceeding 100 miles per hour. Akins was swerving in between cars and driving on the shoulder of the road when the pursuit was terminated as it was becoming too dangerous.
Officers exited at the Blue Ridge Cut-Off on I-70 and were signaled by several citizens, who pointed them to Akins’s vehicle in the Denny’s restaurant parking lot. The vehicle was abandoned, damaged and the air bags deployed. A witness told officers she heard a loud crash, then saw Akins get out of the vehicle and run towards the nearby Drury Inn. The witness also saw a female with several children get out of the vehicle and enter the Denny’s restaurant.
Akins, who was hiding behind a fence, was apprehended. A witness told police officers that Akins had used the public bathroom in the lobby of Drury Inn; he was in the bathroom for only about 10-15 seconds then left the hotel. Officers found a loaded Bersa Firestone .40-caliber pistol hidden in the trash can in the hotel’s bathroom. The gun, which was buried under a large amount of unused Kleenex, had been reported as stolen.
Officers observed skid marks on the concrete median of the roadway and concluded that Akins lost control of the vehicle due to excess speed, causing him to strike the median and blow out several tires. Officers found a plastic bag containing eight separate, smaller bags of crack cocaine in the front center console of Akins’s vehicle.
This case was prosecuted by Assistant U.S. Attorney Bruce E. Clark. It was investigated by the Independence, Mo., Police Department.Joplin Man Sentenced for Disaster Fraud Related to Tornado BenefitsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Joplin, Mo., man pleaded guilty in federal court today for fraudulently receiving (or applying for) federal disaster benefits following the tornado that struck the city of Joplin on May 22, 2011, killing 158 people and causing more than $2.9 billion in damage.
Dustin Joe Showalter, 36, of Joplin, pleaded guilty before U.S. District Judge M. Douglas Harpool to the charge contained in a Feb. 25, 2014, federal indictment.
By pleading guilty today, Showalter admitted that he committed disaster fraud by making false statements to the Federal Emergency Management Agency (FEMA) in an application for disaster benefits.
Showalter fraudulently received disaster benefits by claiming to have lived at a residence in Joplin at the time of the May 22, 2011, tornado, when in fact he did not live at that residence. On the basis of his application to FEMA, Showalter received $938 to which he was not entitled.
Under federal statutes, Showalter is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the U.S. Department of Homeland Security – Office of Inspector General, the FBI and the Joplin, Mo., Police Department.
Disaster Fraud Hotline
Anyone with information about disaster fraud related to the Joplin tornado should call the National Center for Disaster Fraud hotline at 866-720-5721, the Joplin Police Department at 417-623-3131, or the FBI’s Joplin office at 417-206-5700.
Harvey Man, Dominic Terell Lewis, Sentenced for Receipt of Stolen Government MoneyRead the Press Release
U.S. Attorney Kenneth Polite announced that DOMINIC TERELL LEWIS, age 32, a resident of Harvey, Louisiana, was sentenced today after having previously pled of guilty to receipt of stolen government money.
U.S. District Judge Kurt D. Engelhardt sentenced LEWIS to 5 years probation and restitution in the amount of $4,234.
According to court documents, LEWIS obtained a $4,234 Treasury check that was inadvertently delivered to his home address. LEWIS knew the check did not belong to him but had another individual forge the payee’s signature and deposit the check. LEWIS received most of the proceeds.
U.S. Attorney Polite praised the work of the U.S. Secret Service in investigating this matter. Assisstant United States Attorney Chandra Menon is in charge of the prosecution.
Harrisonburg Resident Sentenced on Human Trafficking ChargeRead the Press Release
HARRISONBURG, VIRGINIA – A citizen of Honduras who previously pled guilty to charges related to human trafficking was sentenced today in the United States District Court for the Western District of Virginia in Harrisonburg.
Elin Coello-Ordonez, 32, who pled guilty in June 2013 to one count of conspiring to recruit, entice, harbor, transport, provide, obtain and maintain a person in an interstate venture that used force, threats of force, fraud or coercion to cause a person to engage in a commercial sex act, was sentenced this morning in District Court to 10 years in federal prison. The defendant is currently serving a five-year federal prison term on an immigration charge which rose out of the same investigation. In total, Coello-Ordonez will serve 15 years in federal prison for this matter.
“Mr. Coello-Ordonez forced the young victim in this case to engage in prostitution, then physically abused her when she resisted,” United States Attorney Timothy J. Heaphy said today. “We must continue to do all we can to identify and aggressively pursue similar patterns of human trafficking, which is sadly on the rise in our communities. We must also connect the victims of these awful crimes with services and relief, as the scars of trafficking are extremely difficult to erase.”
“Sex trafficking is one of the most heinous crimes HSI investigates. It sickens me that someone can treat another human being like a mere commodity,” said Clark Settles, Special Agent in Charge of Homeland Security Investigations Washington, D.C. “Our special agents and law enforcement partners work tirelessly to eradicate sex trafficking- no one should have to endure the horrors associated with this crime.”
“The Albemarle County Police Department takes human trafficking very seriously. We are working with our federal, state and local partners to uproot human trafficking in our community. This is an example of successful multi-jurisdictional collaboration,” said Colonel Steve Sellers, Chief of Police for the Albemarle County Police Department.
According to evidence previously presented by Assistant United States Attorney Craig “Jake” Jacobsen, Coello-Ordonez travelled to Honduras in February 2010 and soon thereafter met Jane Doe #1 (the victim), a 17-year-old Honduras citizen. The two soon became boyfriend and girlfriend. The defendant promised the victim that he could get her a waitressing job in Harrisonburg, Virginia. Consequently, in August 2010, days before the victim’s eighteenth birthday, the defendant smuggled her across the border and into the United States.
Upon arrival in Harrisonburg, Virginia, it soon became clear to the victim that the defendant was involved in the operation of a prostitution ring, which consisted of brothels located in Harrisonburg and Charlottesville, Virginia. It became equally clear that there was no waitressing job for the victim. After several months, the defendant told the victim she was going to have to work as a prostitute and have sex with men to earn money. The victim refused. As a result, the defendant verbally and physically abused her. The defendant slapped, kicked and punched the victim until she agreed.
From January 2011 to July 2011, the defendant forced the victim to work as a prostitute at his brothels in Virginia, as well as brothels operated by others in Pennsylvania and Maryland. The victim was forced to have sex with as many as 30 men a day.
On July 16, 2011, the victim called 911 several times because the defendant was beating her. When the police arrived, the victim began to shake uncontrollably and told police the defendant had physically assaulted her. The victim had sustained multiple bruises and her right eye was swollen shut. The defendant was arrested and the victim placed in a shelter for Human Trafficking victims.
The investigation of the case was conducted by the Western District of Virginia’s Human Trafficking Task Force, headed by the United States Attorney’s Office for the Western District of Virginia. Agencies who assisted in the investigation include: U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Albemarle County Police Department, the United States Secret Service, the Department of State Diplomatic Security, the Hyattsville, Maryland Police Department, the Virginia Fusion Center, the Computer Crimes Division of the Virginia Attorney General’s Office, the Virginia State Police, the Harrisonburg Police Department and the University of Virginia’s Women’s Center. Assistant United States Attorney Craig “Jake” Jacobsen prosecuted the case for the United States.
Georgia Man Charged with Drug Trafficking Near Local SchoolsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Terrence D. Brawner, a 32-year-old Georgia native, was indicted by a federal grand jury and arrested on multiple drug trafficking charges, United States Attorney William J. Ihlenfeld, II, announced today.
According to the indictment, Brawner repeatedly distributed heroin and crack cocaine within 1,000 feet of St. Michael’s Elementary School and Wheeling Central Catholic High School in Wheeling, West Virginia. Brawner is charged with three counts of distributing crack cocaine near a protected location, three counts of distributing heroin near a protected location, and one count of aiding and abetting the distribution of heroin near a protected location. He faces up to 40 years in prison and a fine of up to $2,000,000.00 for each of these seven charges.
Brawner is also charged with one count of conspiracy to possess with intent to distribute and to distribute oxycodone in and around New Martinsville, West Virginia for which he faces up to 20 years in prison and a fine of up to $1,000,000.00.
Assistant U.S. Attorney Robert McWilliams is prosecuting the case on behalf of the government. An investigation by the West Virginia State Police and the Ohio Valley Drug & Violent Crime task force led to Brawner’s indictment and arrest.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Four Assistant U.S. Attorneys from the Eastern District of California Receive Prestigious Department of Justice AwardsRead the Press Release
SACRAMENTO, Calif. — Attorney General Eric Holder presented three Justice Department employees and one former employee in the Eastern District of California with Attorney General Awards at a ceremony today in Washington DC. These annual awards, which are the highest honors bestowed by the Department, recognize Department employees and other individuals for their dedication to carrying out the Department of Justice’s mission.
“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.”
The Attorney General’s Award for Distinguished Service is the Justice Department’s second highest award for employee performance. The recipients of this award exemplify the highest commitment to the department’s mission. Attorney General Holder presented the Distinguished Service Award to the Eastern District Assistant United States Attorneys for their work that led to an unprecedented civil settlement with JPMorgan Chase. The settlement negotiations and the predicate fraud investigations they undertook led to what was the largest settlement with a single entity in American history - $13 billion – and the largest Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) penalty ever recovered by the department - $2 billion. The tireless efforts of the recipients advanced core missions of the department by holding wrongdoers accountable for reckless and abusive conduct that contributed to the financial crisis, as well as providing substantial compensation for federal entities supported by American taxpayers and critical assistance to neighborhoods impacted by the mortgage meltdown.
The recipients of the Attorney General’s Award for Distinguished Service include the Eastern District of California’s Assistant U.S. Attorneys David T. Shelledy, Kelli L. Taylor, and Colleen M. Kennedy and former Assistant U.S. Attorney Richard Elias.
“We are delighted that the Attorney General has recognized Assistant U.S. Attorneys David T. Shelledy, Kelli L. Taylor, and Colleen M. Kennedy and former Assistant U.S. Attorney Richard Elias for their outstanding contributions to the Department and its mission,” said Benjamin B. Wagner United States Attorney for the Eastern District of California. “These awards are deserved recognition for these skilled attorneys, whose tireless work and dedication brought about such a large settlement. Today’s awardees exemplify what it truly means to be a public servant and we are proud of their extraordinary service.”
The civil settlement with JPMorgan Chase is the largest recovery ever in a case handled by the Eastern District of California’s U.S. Attorney’s Office. The settlement resulted in part from an investigation that determined that JPMorgan sold billions of dollars of residential mortgage-backed securities (RMBS) that were backed by pools of mortgage loans that contained loans that did not comply with the loan originators’ underwriting guidelines, were secured by properties with inflated appraisals, were supported by inaccurate loan-to-value or debt-to-income ratios, or were originated in violation of federal and state laws and regulations, while misrepresenting to investors the quality of the loans in the pools and the risk of loss.
Former WV Division of Highways Supervisor Convicted in State CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistBUCKHANNON, WEST VIRGINIA – Former West Virginia Division of Highways supervisor Barry D. Thompson, 49, of Mr. Clare, West Virginia, admitted that he lied to the State Police, United States Attorney William J. Ihlenfeld, II, announced today.
Today in the Magistrate Court of Upshur County, Thompson entered guilty pleas to two counts of providing false information to a West Virginia State Trooper. Thompson, who is presently under federal indictment for lying to a federal agent, has agreed to cooperate with federal authorities in their ongoing investigation into the WV Division of Highways Equipment Division. If Thompson fully cooperates, the U.S. Attorney’s Office will dismiss the pending federal indictment.
During the federal investigation into the Division of Highways, Thompson denied any knowledge that state employees had misused state resources to repair vehicles that were no longer owned by the state. However, Thompson admitted today that he instructed at least one state employee, at state expense and on state time, to repair a dump truck that had previously been sold at public auction. Thompson was also present when a state employee was directed to travel in his state issued vehicle, on state time, to purchase a replacement muffler for the aforementioned dump truck. The muffler did not fit and Thompson exchanged it, receiving a refund for the returned muffler. Both mufflers were sold at a discounted rate normally provided to the Division of Highways.
The case was investigated by the U.S. Attorney’s Public Corruption Unit. The Federal Bureau of Investigation, State Police, and State Commission on Special Investigations led the inquiry. Assistant U.S. Attorney John C. Parr prosecuted the case on behalf of the government.
Upshur County Magistrate Juanita Adams sentenced Thompson to one year of probation.
To report public corruption in your community, call the West Virginia Public Corruption Hotline at 855-WVA-FEDS or email [email protected].
Former Union Delegate Sentenced to 20 Months in Prison for Extortion Conspiracy Involving Christmastime Tribute PaymentsRead the Press Release
NEWARK, N.J. - A former delegate of the International Longshoremen’s Association (ILA) Local 1235 was sentenced today to 20 months in prison for conspiring to extort longshoremen on the New Jersey piers for Christmastime tribute payments, New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Robert Ruiz, 55, of Watchung, New Jersey – the delegate of the union from approximately 2007 through 2010 – previously pleaded guilty before U.S. District Judge Claire C. Cecchi to one count of an indictment charging him with conspiring to extort Christmastime tributes from ILA Local 1235 members. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court: Ruiz and two other former ILA officers – Vincent Aulisi, 82, of West Orange, New Jersey, the president of ILA Local 1235 from 2006 through 2007; and Thomas Leonardis, 57, of Glen Gardner, New Jersey, the president of the union from approximately 2008 through 2011 – admitted that they conspired to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation. Leonardis and Ruiz were suspended from their positions following their arrests in January 2011. Aulisi had already retired from his employment on the New Jersey piers at the time of his arrest.
Aulisi was sentenced to 18 months in prison on Oct. 8, 2014. Leonardis still awaits sentencing.
Charges are still pending against three defendants in the superseding indictment, including a racketeering conspiracy charge against Stephen Depiro, 59, of Kenilworth, New Jersey – a soldier in the Genovese organized crime family of La Cosa Nostra. Since at least 2005, Depiro has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235, and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235.
Two other Genovese family associates charged in the case are former union officials: Albert Cernadas, 79, of Union, New Jersey, the president of ILA Local 1235 from approximately 1981 to 2006 and former ILA executive vice president; and Nunzio LaGrasso, 63, of Florham Park, New Jersey, the former vice president of ILA Local 1478 and former ILA representative.
In addition to the prison term, Judge Cecchi sentenced Ruiz to serve two years of supervised release.
U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford, and in New York, under the direction of Assistant Director in Charge George Venizelos; as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia of the New York Regional Office, with the investigation.
The government is represented by Assistant U.S. Attorneys Anthony Mahajan of the U.S. Attorney’s Office, District of New Jersey, and Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York.
The charges and allegations against the remaining defendants are merely accusations and they are considered innocent unless and until proven guilty.
14-372Defense counsel: Marc Agnifilo Esq., New York
Former Union Delegate Sentenced to 20 Months in Prison for Extortion Conspiracy Involving Christmastime Tribute PaymentsRead the Press Release
NEWARK, N.J. - A former delegate of the International Longshoremen’s Association (ILA) Local 1235 was sentenced today to 20 months in prison for conspiring to extort longshoremen on the New Jersey piers for Christmastime tribute payments, New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Robert Ruiz, 55, of Watchung, New Jersey – the delegate of the union from approximately 2007 through 2010 – previously pleaded guilty before U.S. District Judge Claire C. Cecchi to one count of an indictment charging him with conspiring to extort Christmastime tributes from ILA Local 1235 members. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Ruiz and two other former ILA officers – Vincent Aulisi, 82, of West Orange, New Jersey, the president of ILA Local 1235 from 2006 through 2007; and Thomas Leonardis, 57, of Glen Gardner, New Jersey, the president of the union from approximately 2008 through 2011 – admitted that they conspired to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation. Leonardis and Ruiz were suspended from their positions following their arrests in January 2011. Aulisi had already retired from his employment on the New Jersey piers at the time of his arrest.
Aulisi was sentenced to 18 months in prison on Oct. 8, 2014. Leonardis still awaits sentencing.
Charges are still pending against three defendants in the superseding indictment, including a racketeering conspiracy charge against Stephen Depiro, 59, of Kenilworth, New Jersey – a soldier in the Genovese organized crime family of La Cosa Nostra. Since at least 2005, Depiro has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235, and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235.
Two other Genovese family associates charged in the case are former union officials: Albert Cernadas, 79, of Union, New Jersey, the president of ILA Local 1235 from approximately 1981 to 2006 and former ILA executive vice president; and Nunzio LaGrasso, 63, of Florham Park, New Jersey, the former vice president of ILA Local 1478 and former ILA representative.
In addition to the prison term, Judge Cecchi sentenced Ruiz to serve two years of supervised release.
U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford, and in New York, under the direction of Assistant Director in Charge George Venizelos; as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia of the New York Regional Office, with the investigation.
The government is represented by Assistant U.S. Attorneys Anthony Mahajan of the U.S. Attorney’s Office, District of New Jersey, and Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York.
The charges and allegations against the remaining defendants are merely accusations and they are considered innocent unless and until proven guilty.
14-CR-372
Defense counsel: Marc Agnifilo Esq., New York
Former Simi Valley Businessman Sentenced to over 7 Years in Prison for Selling Knock-Off Batteries to Navy for Use on WarshipsRead the Press Release
LOS ANGELES – The former owner of the Simi Valley-based battery distributor Powerline, Inc. was sentenced today to 87 months in prison for defrauding the government by selling more than $2.7 million in knock-off batteries to the U.S. Department of Defense.
Didier De Nier, 64, who lived in Simi Valley until he fled the U.S. over two years ago, was found guilty in April by a federal jury of five counts of wire fraud and one count of conspiracy to defraud the United States.
In addition to the prison term, United States District Judge Dolly M. Gee ordered De Nier to pay more than $2.7 million in restitution, mostly to the DoD.
“Military personnel aboard Navy vessels relied on these bogus batteries to supply back-up power in an emergency, but the fraudulent nature of the nearly 80,000 batteries sold by De Nier meant warships risked becoming dead in the water,” said Acting United States Attorney Stephanie Yonekura. “This defendant risked the safety of American military personnel, which warrants the substantial prison sentence he has received.”
The charges stem from a probe by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the Defense Criminal Investigative Service (DCIS). The Defense Logistics Agency and the Defense Contract Audit Agency also provided significant support to the investigation, which represents the first case prosecuted under the 2011 Defense Authorization Act.
“As this sentence makes clear, military procurement fraud is a serious crime, with repercussions that extend far beyond the financial losses to the Department of Defense and U.S. taxpayers,” said Claude Arnold, special agent in charge for HSI Los Angeles. “This defendant put the safety and readiness of our nation’s warfighters at risk merely to line his own pockets. HSI will continue to aggressively target those who willfully jeopardize our nation’s security and the welfare of those devoted to protecting it.”
Chris Hendrickson, Special Agent in Charge, DCIS, Western Field Office, stated: “America's Warfighters deserve the very best to perform their jobs, and the taxpayers expect nothing less. Fraud committed by defense contractors not only takes away precious resources necessary for the protection of our brave sailors, solders, airman and marines, it also undermines the confidence of the American public who demand that tax dollars are used responsibly. This investigation should serve as a warning for those intent on defrauding the U.S. military and American public that the Defense Criminal Investigative Service and our law enforcement partners will pursue these crimes relentlessly.”
From 2004 to 2011, Powerline, which also did business as Birdman Distribution Corp., sold more than 80,000 batteries and battery assemblies which the Navy used for emergency back-up power aboard nuclear aircraft carriers, minesweepers and ballistic submarines. The batteries were installed on numerous Naval vessels at a cost to the DOD of more than $2.6 million.
De Nier instructed his employees how to disguise the bogus nature of the batteries by affixing counterfeit labels falsely identifying them as originating from approved manufacturers – even drafting instructional guides on how to assemble the knock-offs. Powerline employees also used chemicals to remove “Made in China” markings from the counterfeit batteries and prepared doctored invoices, packing slips and other paperwork.
De Nier profited handsomely from his crimes – using proceeds to buy a yacht, pay his home mortgage, and to cover the cost of travel to the Caribbean and French Riviera.
De Nier’s ex-wife, Lisa De Nier, who served for decades as Powerline’s vice president of sales, previously pleaded guilty in this case to conspiracy to defraud the government. She faces up to 10 years in prison when she is sentenced later this year.
Shortly after federal agents searched Powerline’s offices in July 2012, De Nier fled the Los Angeles area to live aboard his yacht near the Caribbean island of St. Martin, a French territory. In October 2013, federal agents arrested De Nier, a dual French-U.S. citizen, after he had sailed his yacht to the U.S. Virgin Islands.
Those with information relating to fraud, corruption or waste in government contracting should contact the DoD Hotline at www.dodig.mil/hotline or should call (800) 424-9098.
Release No. 14-136
Former Miami-Dade County Employee Pleads Guilty to Tax EvasionRead the Press Release
A Coral Gables, Florida resident and former Miami-Dade County General Services Administration (GSA) employee pleaded guilty to a one-count information charging him with tax evasion, the Justice Department and Internal Revenue Service (IRS) announced today.
Jesus Pons pleaded guilty in the U.S. District Court for the Southern District of Florida. According to the information, Pons was a computer services manager at the GSA of Miami-Dade County responsible for managing and allocating resources to information technology projects for Miami-Dade County. According to court filings, he was also responsible for supervising and managing tasks performed by county vendors. From 2007 to 2011, Pons received money in the form of illegal kickback payments from county vendors Data Industries and Paradyne Consulting Services (Paradyne). In exchange for these illegal kickbacks, Pons approved payments from Miami-Data County to Data Industries and Paradyne for consulting work that was never done. According to the plea agreement, Pons did not report the illegal kickbacks on his tax returns. From 2007 through 2011, Pons earned income from the scheme in the amount of $1,666,998 that he did not report to the IRS, causing a tax loss of $556,254.
Pons faces up to a statutory maximum sentence of five years in prison at his sentencing on Dec. 17.
This case was investigated by IRS-Criminal Investigation. It is being prosecuted by Trial Attorneys Jeffrey McLellan and Erin Pulice of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division website.
Former Denton High School Teacher Admits Producing Child PornographyRead the Press Release
FORT WORTH, Texas — A former teacher at Denton High School appeared in federal court today and pleaded guilty to federal child pornography charges, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Gregory Bogomol, 38, of Fort Worth, appeared this morning before U.S. Magistrate Judge Jeffrey L. Cureton and pleaded guilty to an indictment charging two counts of production of child pornography. Each count carries a statutory penalty of at least 15 years in federal prison and a maximum of 30 years in federal prison, up to a $250,000 fine, and up to a lifetime of supervised release. Bogomol has been in custody since May 2014 on charges outlined in a related federal criminal complaint. He resigned from his position with the Denton Independent School District the week prior to his arrest. Sentencing is set for February 12, 2015, before U.S. District Judge Terry R. Means.
According to documents filed in the case, the investigation began when U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) was contacted by the parents of a 15-year-old male victim regarding an individual who solicited a nude photograph of the minor through a smartphone application.
Specifically, according to the factual resume, Bogomol used social media applications such as KIK, Grindr, and Pinger to initiate conversations with underage males. Bogomol posed as a minor female and sent nude images of females to entice the boys to produce sexually explicit pictures.
After Bogomol received an image from the minor male, Bogomol would make additional explicit demands. If the minor male did not comply with his demands, Bogomol would threaten to send sexually explicit pictures of the boy to the boy’s friends via social media applications.
On approximately April 20, 2014, Bogomol coerced one minor victim to send a sexually explicit image of himself. A few days later, Bogomol coerced another minor victim to send a sexually explicit image of himself.
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.”
Anyone who may have been victimized in this case is asked to contact HSI at its toll-free number: 1-866-347-2423.
Assistant U.S. Attorney A. Saleem is in charge of the prosecution.
Former Civilian Employee at McConnell AFB Pleads Guilty to Theft of Public FundsRead the Press Release
WICHITA, KAN. – A former civilian employee at McConnell Air Force Base pleaded guilty Wednesday to embezzling more than $54,000 in public funds, U.S. Attorney Barry Grissom said.
Deidra N. Sanders, 44, Wichita, Kan., pleaded guilty to one count of theft of government money. In her plea, she admitted the crime occurred between March 2013 and April 2014 while she worked as a deputy dispersing officer for the U.S. Air Force at McConnell. In her position, she had access to the Defense Finance and Accounting Service Fund. She stole a total of $54,348 from the fund.
Sentencing is set for Jan. 6. She faces a maximum penalty of five years in federal prison and a fine up to $250,000. Grissom commended the U.S. Air Force and Assistant U.S. Attorney Alan Metzger for their work on the case.
Five Defendants Indicted in Tax Refund SchemRead the Press Release
Follow @NDFLNewsTALLAHASSEEFive defendants have been charged with conspiring to commit wire fraud in connection with the filing of false income tax returns. The 21-count indictment, unsealed today, also charges substantive counts of wire fraud, theft of government funds, and aggravated identity theft. The charges were announced by Pamela C. Marsh, U.S. Attorney for the Northern District of Florida.
Dorothy Bailey, 51, and Phillip Walker, 23, of Tampa, along with Gabriela Huerta, 22, Cedric Page, 25, Darren Royal, 22, each of Tallahassee, are alleged to have conspired to fraudulently obtain tax refunds by filing false federal income tax returns. The indictment charges that between 2011 and 2014, members of the group prepared and filed fraudulent tax returns seeking more than $2.5 million in tax refunds. Members of the conspiracy created the fraudulent tax returns using taxpayer identification numbers and other personal identifying information stolen from deceased individuals and from residents of multiple Tallahassee apartment complexes. The conspirators also obtained identifying information from a Fort Bend County, Texas, website containing criminal court records.
In addition to the conspiracy charge, Bailey, Huerta, Page, Royal, and Walker are also charged with eleven substantive counts of wire fraud, based upon their electronic submission of the fraudulent returns. Bailey, Huerta, Page, Royal, and Walker are also charged with theft of government funds and aggravated identity theft based upon the unauthorized use of personal identifying information of victims as part of their scheme to commit wire fraud.
The investigation was conducted by the Internal Revenue Service and the Leon County Sheriff’s Office. The government’s case is being prosecuted by Assistant U.S. Attorney Jason Coody.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the Government's burden to prove guilt beyond a reasonable doubt in a court of law.
Federal Prosecutor from New Mexico Receives U.S. Attorney General AwardRead the Press Release
ALBUQUERQUE – Attorney General Eric Holder presented 278 Justice Department employees and ten other individuals, including an Assistant U.S. Attorney from the U.S. Attorney’s Office in the District of New Mexico, with Attorney General Awards at a ceremony today in Washington, D.C. These annual awards recognize Justice Department employees and other individuals for their dedication to carrying out the Department of Justice’s mission.
“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.”
During today’s ceremony, Supervisory Assistant U.S. Attorney Glynette R. Carson McNabb received the Attorney General’s Award for Exceptional Service in Indian Country which recognizes extraordinary efforts by Justice Department employees who demonstrate the Department’s commitment to fight crime in Indian Country. Ms. Carson McNabb was recognized for her exceptional service and outstanding contributions to public safety in Indian Country over the course of 14 years as an Assistant U.S. Attorney in the District of New Mexico. Since June 2010, Ms. McNabb has served as the supervisor for the Indian Country Crimes Section of the U.S. Attorney’s Office and Tribal Liaison for the 22 tribes in New Mexico. In presenting the award to Ms. Carson McNabb, Attorney General Holder noted that Ms. Carson McNabb’s “dedication to improving public safety and the quality of life in tribal communities not only in New Mexico but throughout the country, has substantially contributed to the Justice Department’s commitment to fight crime in Indian Country.”
“This award is not only a fitting recognition of Glynette Carson McNabb’s extraordinary contributions to tribal communities in New Mexico and throughout the country,” said U.S. Attorney Damon P. Martinez, “it is also a tribute to the countless tribal leaders, tribal, local, state and federal law enforcement officers, social service providers, and members of our Pueblos and Tribes who work with Glynette and the Assistant U.S. Attorneys in the Indian Country Crimes Section to bring justice to our Native communities. Their dedication to the communities they serve is inspiring and is making a powerful difference for our tribal communities.”
In addition to supervising ten Assistant U.S. Attorneys charged with investigating and prosecuting the full range of crime arising from New Mexico’s 22 Indian tribes, Ms. Carson McNabb has been responsible for implementing and directing three DOJ-sponsored pilot projects in the New Mexico’s Indian Country, including the Office on Violence Against Women (OVW) Tribal Special Assistant U.S. Attorney Pilot Project, which seeks to combat violence against Native American women. In addition to her work on the OVW pilot project, Ms. Carson McNabb serves as a member of the Attorney General’s Violence Against Women Federal and Tribal Prosecution Task Force.
Ms. Carson McNabb also has significantly contributed to the Justice Department’s work in Indian Country through her efforts to expand the available law enforcement resources by training tribal, state and local officers so that they may be commissioned as special law enforcement (SLE) officers by the BIA. As a member of the Criminal Justice in Indian Country Working Group, Ms. Carson McNabb assisted in the development of a training program for officers seeking to obtain SLE commissions from the BIA, has participated in numerous SLEC training programs throughout the country, and regularly serves as faculty for DOJ sponsored Indian Country training programs.
Ms. Carson McNabb is a native of Silver City, N.M. Before joining the U.S. Attorney’s Office, Ms. Carson McNabb was an Assistant District Attorney in the 13th Judicial District Attorney’s Office (Valencia County) for the State of New Mexico for four years. She is a graduate of the University of New Mexico and Texas Tech University School of Law.
Federal Inmate Charged with Attempted MurderRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the federal grand jury sitting in Scranton, Pennsylvania, returned an indictment yesterday charging an inmate at the United States Penitentiary at Canaan, Pennsylvania, with allegedly assaulting another inmate with a dangerous weapon and with the intent to commit murder. George Lyle Cullett, Jr., age 55, formerly of California, was charged with the offense. In addition, the Grand Jury returned charges alleging that Cullett conspired with another inmate to commit the attack using sharpened weapons commonly referred to as “shanks.” United States Attorney Peter Smith noted that the victim was another inmate who survived the attack but suffered numerous stab wounds which required treatment at a local hospital.
The case was investigated by the FBI and the Special Investigation Section at USP-Canaan.
Prosecution is assigned to Assistant United States Attorney John Gurganus.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is thirty years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Father and Son Pharmacists Plead Guilty to Drug ChargesRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that R. Wayne Murphy, age 63, and J. Kevin Murphy, age 36, father and son pharmacists from Boston, Georgia pled guilty today before the Honorable Hugh Lawson, United States District Judge in Macon, Georgia. Wayne Murphy pled guilty to introducing adulterated and misbranded drugs into interstate commerce; Kevin Murphy pled guilty to possession with intent to distribute hydrocodone.The investigation in this case revealed two criminal schemes had taken place at Boston Pharmacy in Boston, Georgia, where the Murphys were pharmacists. In the first scheme, Wayne Murphy obtained prescription drugs, such as Advair, Crestor and Plavix, in Costa Rica, smuggled them into the United States, repackaged them in Boston Pharmacy bottles with preexisting labels, and sold them to his customers for a profit.
“Wayne Murphy abused his valuable position of trust in the community,” said U.S. Attorney Michael Moore. “Although testing revealed that the prescription drugs he sold to his unsuspecting customers had the active ingredients for the same drugs manufactured in the United States, the only drugs a pharmacist should ever sell are those which have been safeguarded by our regulatory system from the moment they are manufactured until the moment they are delivered to the consumer. Greed is never a reason to put a patient at risk.”
In the second scheme at Boston Pharmacy, Kevin Murphy legally purchased large quantities of controlled substances, including hydrocodone and Xanax, from wholesale drug companies and then sold them illegally to drug dealers at a steep profit. From May through November of 2009, Kevin Murphy admitted the amount of illegal drugs attributable to him was 57,393 hydrocodone pills and 4,000 Xanax pills.
“Kevin Murphy used his pharmacy license to act as a simple drug dealer,” said U.S. Attorney Michael Moore. “My office will vigorously prosecute all drug dealers, whether they are working on a street corner or working behind a counter.”
The maximum penalty for introducing adulterated and misbranded drugs into interstate commerce is three (3) years in prison and a fine of $10,000.00, or both, followed by a term of supervised release of up to one (1) year. The maximum penalty for possession with intent to distribute hydrocodone is ten (10) years in prison and a fine of $500,000.00, or both, followed by a term of supervised release of not more than three (3) years. In addition, as part of their plea agreements, the Murphys jointly agreed to forfeit $403,496.63 in illegal proceeds.
“I applaud the U.S. Attorney’s office on its successful efforts to bring closure to the case of Wayne and Kevin Murphy,” said C. Richard Allen, Director of the Georgia Drugs and Narcotics Agency. “With these pleas, Thomas County and the surrounding areas are safer because of the loss of this major source of unlawfully distributed highly addictive prescription drugs.”
In entering their guilty pleas, the Murphys join two other individuals who pled guilty to felonies arising from the criminal conduct at Boston Pharmacy. On June 10, 2014, Arnolfo Capistran pled guilty to possession with intent to distribute Xanax for his role in Kevin Murphy’s scheme to resell controlled substances. And on May 5, 2014, Karen Dunlap, another former pharmacist at Boston Pharmacy, pled guilty to misprision of a felony.“I appreciate all of the agencies that were involved and assisted Thomas County in the prosecution of this complicated case, especially the U.S. Attorney’s Office,” said Thomas County Sheriff R. Carlton Powell. “These guilty pleas help further my office’s mission to eradicate any illegal drug trafficking in our County, and they also help keep our citizens safe in the prescription drugs they purchase.”
The case was investigated by the Drug Enforcement Administration, the Georgia Bureau of Investigation, the Georgia Drugs and Narcotics Agency, the Thomas County Narcotics and Vice Division, and the U.S. Food and Drug Administration, Office of Criminal Investigations. Assistant United States Attorney Peter Leary is handling the prosecution for the Government.Sentencing for the Murphys will be held on January 14, 2015 at the U.S. District Court in Valdosta, Georgia.
Inquiries regarding the case should be directed to Karen Moore at the United States Attorney’s Office at 478-752-3511.
FBI, U.S. Marshals Continue Search for Convicted Sex OffenderRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – The Federal Bureau of Investigation and the U.S. Marshals Service are leading the continued effort to locate convicted sex offender Mustafa Bazbaz who absconded earlier this month, United States Attorney William J. Ihlenfeld, II, announced today.
Leveraging their investigative resources and following all credible leads, the FBI and U.S. Marshals are doing everything they can to locate Bazbaz, 28, of Pittsburgh, who was under electronic monitoring in Western Pennsylvania pending sentencing when he was granted permission to leave his home to attend a worship session. He failed to return, prompting the current manhunt.
Bazbaz pled guilty in August 2014 to charges that he travelled across states lines to a Hancock County, West Virginia hotel in December 2013 and engaged in sexual conduct with a 15-year old female from Jefferson County, Ohio.
Anyone with information on the whereabouts of Bazbaz is encouraged to contact Chad Simpson at the United States Marshals Service at 304-218-9286 or the FBI at 412-432-4000. Callers can remain anonymous.
Detroit Residents Plead Guilty to Defrauding IRS with Identities of Deceased IndividualsRead the Press Release
Two Detroit residents pleaded guilty to charges of wire fraud and aiding and abetting in the use of false identification, U.S. Attorney Barbara L. McQuade announced today.
United States Attorney McQuade was joined in the announcement by Acting Special Agent in Charge Jarod Koopman, IRS Criminal Investigation.
Renita Adams and McAllen Jackson Knight, both of Detroit, entered their guilty pleas before U.S. District Court Judge Avern Cohn.
According to court records, Adams and Knight participated in a scheme with others to defraud the United States by using the names and Social Security numbers of recently deceased individuals to prepare fraudulent tax returns. Hundreds of fraudulent 2010 tax returns were filed. The returns sought refunds by making false claims for the Earned Income Credit, Education Credits and the Making America Work Credit. The returns were transmitted electronically, utilizing public access internet connections from local hotels and coffee shops. Three hundred and six fraudulent returns were transmitted using an internet account registered to Adams. The refunds were directed to bank accounts that were established for the sole purpose of receiving the fraudulent refunds. Knight caused some of these bank accounts to be opened by others to receive the deposits of the false tax refunds. Adams helped distribute the proceeds of the fraudulently obtained tax refunds at the direction of her fellow participants and retained a portion of the proceeds for her own benefit.
“Due to the serious harm that is caused to anyone whose identity is stolen; identity theft is a top priority for the IRS-Criminal Investigation. We will continue to detect and investigate these types of cases in order to protect taxpayers from being victimized," said Acting Special Agent in Charge Jarod Koopman,.
A sentencing hearing for Adams and Knight will be set by the court. Wire fraud carries a maximum penalty of 20 years imprisonment and/or a fine of $250,000. Use of false identification with the intent to commit a violation of federal law carries a maximum penalty of 15 years and/or a fine of $250,000.
The investigation of this case was conducted by special agents of the Internal Revenue Service Criminal Investigation and prosecuted by Assistant U.S. Attorney Ross MacKenzie and Kenneth Vert, Trial Attorney, Department of Justice, Tax Division.Columbian Cartel Leader Admits Trafficking Narcotics Sold in the United StatesRead the Press Release
NEWARK, N.J. B A Colombian cartel leader expelled from Venezuela to face federal charges in New Jersey for his role in an international cocaine distribution conspiracy admitted today in Newark federal court to conspiring traffic the drug into the United States, U.S. Attorney Paul J. Fishman and FBI Special Agent in Charge Aaron T. Ford announced.
Colombian national Salomon Camacho Mora, 70, a/k/a “Papa Grande,” a/k/a “El Viejo,” a/k/a “Hector,” was arrested in Valencia, Venezuela, on Jan. 13, 2010, and subsequently expelled by Venezuelan authorities to the United States. Previously, Camacho, who had been designated a Consolidated Priority Organization Target (CPOT) by the Department of Justice, was a New Jersey FBI fugitive for more than eight years.
Camacho was originally indicted in September 2002 in U.S. District Court for the District of New Jersey. He entered a plea of guilty today, to a count of conspiracy contained in a superseding indictment, before U.S. District Judge William H. Walls.
According to statements made during Camacho’s guilty plea proceeding and documents filed in Newark federal court: Camacho admitted that he and members of his drug organization purchased multi-kilogram quantities of cocaine from various cocaine processing laboratories located in Colombia, and arranged for the transportation of the cocaine loads to various shipping ports in Venezuela. Camacho and members of his drug organization then sold the cocaine shipments to other drug trafficking organizations operating in Puerto Rico, the Dominican Republic, and the United States.
He also acknowledged that others in his organization received and stored the drug shipments in Venezuela, and arranged for their maritime transportation to Puerto Rico and the United States.
The drug trafficking operation generated substantial profits for Camacho and his conspirators.
Camacho faces a statutory mandatory minimum of 10 years in prison, a statutory maximum of life in prison, and fines of up to $10 million or twice the amount of profits he gained from his illegal conduct. As part of his plea agreement, Camacho has agreed to the entry of a $1.6 million forfeiture money judgment and the forfeiture of eight Colombian properties that were the product of ill-gotten gains. Sentencing is currently scheduled for March 10, 2015.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; the DEA, under the direction of Special Agent in Charge Carl J. Kotowski in Newark; and the New Jersey National Guard Anti-Narcotics Task Force for the investigation.
Fishman also thanked the U.S. Department of Justice Criminal Division's Office of International Affairs for providing assistance in this matter. Additionally, Fishman thanked the Venezuelan agencies Oficina Nacional Anti Drogas (ONA), Servicio Bolivariano de Intelligencia Nacional, (SEBIN), Servicio Administrativo de identificacion migracion y Extranjeria, (SAIME) and the Colombian law enforcement authorities for their assistance in Camacho’s arrest and deportation.
The government is represented by Assistant U.S. Attorney Adam N. Subervi of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: William Clay Esq., MiamiCamacho Mora Salomon Superseding Indictment
Columbia Businessman Admits to Using Client Money for His Own Illegal BenefitRead the Press Release
Baltimore, Maryland – Pedro Santiago, age 43, of Columbia, Maryland pleaded guilty today to wire fraud in connection with two fraud schemes in which he illegally used $282,000 of his clients’ money.The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to his plea, from February 2009 to January 2010, Santiago engaged in two separate fraud schemes, holding himself out in both schemes as a managing partner and business consultant for DST Services, located at 7500 Greenway Center Drive in Greenbelt, Maryland. DST Services was not registered to do business in Maryland.
In the first scheme, Santiago promised that he would obtain a business line of credit for a victim of between $550,000 and $750,000, if the victim paid Santiago $20,500. On February 12, 2009, Santiago caused to be wired $20,500 from the victim’s bank account in California into Santiago’s account in Maryland. Instead of obtaining the line of credit for the victim, Santiago spent the money on himself and others.
In the second scheme, Santiago promised victims that if they loaned him money, or invested with him, he would broker a deal involving crude oil or other commodities in which the victims would receive a return on their loan or investment. Santiago caused five victims to wire transfer or send by check a total of $261,500. Instead of using the money to broker deals involving commodities, Santiago used the money for himself or others.
Santiago faces a maximum sentence of 20 years in prison followed by three years of supervised release and a fine of $250,000. Santiago has agreed to forfeit and pay restitution of $282,000, the total loss under both schemes. U.S. District Judge J. Frederick Motz scheduled his sentencing for January 27, 2015, at 2:15 p.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney Nicolas A. Mitchell, who is prosecuting the case.
Chester County Woman Caused Minor to Engage in Commercial Sex ActsRead the Press Release
PITTSBURGH - A resident of Chester County, Pa., pleaded guilty in federal court to a charge of sex trafficking of a child, United States Attorney David J. Hickton announced today.
Poshauntamarin Walker, 35, pleaded guilty to one count before Senior United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that in and around December of 2012, to in and around March 2013, Walker knowingly recruited, enticed, harbored, transported, provided and obtained a minor, John Doe, to engage in a commercial sex acts.
Judge Hornak scheduled sentencing for Feb. 11, 2015, at 9:30 a.m. The law provides for a total mandatory minimum sentence of 10 years and a maximum sentence of life in prison, a fine of $250,000, or both. Pursuant to the defendant’s plea agreement with the government, Walker agreed to a sentence of 10 years imprisonment. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Allegheny County Police Department and the City of Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Walker.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Carrolltown Man Sentenced for Role in Marijuana Growing and Distribution OperationRead the Press Release
JOHNSTOWN, Pa. - A resident of Carrolltown, Pa., has been sentenced in federal court to five years of probation, the first twelve months of which must be satisfied by a condition of home confinement, and ordered to perform 500 hours of community service on his conviction of conspiracy to manufacture and possess marijuana plants, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Rodney Lowmaster, 58.
According to information presented to the court, from Sept. 30, 2010, to May 9, 2011, Rodney Lowmaster conspired to manufacture and possess with the intent to distribute 1,000 or more marijuana plants. Evidence presented to the Court at the time of Rodney Lowmaster's sentencing reflected that he conspired with George M. Lowmaster and others to grow marijuana plants with the intent to facilitate and promote George M. Lowmaster's drug distribution organization.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
A joint task force, headed by the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, conducted the investigation that led to the prosecution of Rodney Lowmaster. Other agencies participating on the task force include the Internal Revenue Service-Criminal Investigation, Pennsylvania State Police, Pennsylvania Attorney General's Office, Cambria County District Attorney's Office, Carrolltown Police Department, Patton Police Department, Ebensburg Police Department, Portage Police Department and Paint Township Police Department.
Canton and Gulfport Awarded Doj Hiring Grants to Help Reduce Violence and Protect SchoolsRead the Press Release
Gulfport, Miss – Keith Anthony Kiel, 38, of Mobile, Alabama, and Randy Laverne Marshall, 34, of Pritchard, Alabama, were sentenced on October 14, 2014 by Chief U.S. District Judge Louis Guirola, Jr. for a series of eight bank robberies across the Southeast, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Donald Alway.
Kiel was sentenced to a 67 years in federal prison and Marshall was sentenced to 142 years in federal prison. In addition to their prison sentences, Kiel was ordered to pay $205,018.50 in restitution to victims and $1,100.00 in special assessments and Marshall was ordered to pay $191,321.22 in restitution to victims and $1,700.00 in special assessments.
Kiel and Marshall were convicted of bank robberies spanning from March 2008 through May 2013 in Mississippi, Alabama and Florida. The investigation involved federal, state and local law enforcement from four federal judicial districts. Kiel was convicted on eleven separate criminal counts including bank robbery, conspiracy to commit bank robbery, brandishing a firearm during a violent felony, interstate transportation of a stolen vehicle, and witness intimidation. Marshall was convicted on seventeen counts of bank robbery, conspiracy to commit bank robbery, brandishing a firearm during a violent felony, and interstate transportation of a stolen vehicle.
Three of the robberies occurred from March – June 2008 with the other five robberies occurring from December 2012 through May 2013. Most of an approximately four-year gap in the robberies coincided with a period from July 2008 to May 2012 when defendant Randy Marshall was in continuous custody for another conviction.
A chronological list of the eight bank robberies in Mississippi, Alabama, and Florida is as follows: Regions Bank, Bienville Boulevard, Ocean Springs, MS (3/4/08)
First Federal Savings and Loan, U.S. Highway 90, Gautier, MS (5/13/08)
Regions Bank, Eisenhower Drive, Biloxi, MS (6/19/08)
Merchants & Marine Bank, Mississippi Highway 613, Moss Point, MS (12/13/12)
Wells Fargo Bank, Mobile Highway, Pensacola, FL (1/28/13)
Hancock Bank, Cowan Road, Gulfport, MS (3/20/13)
Bancorp South, Fort Dale Road, Greenville, AL (5/2/13)
Hancock Bank, Main Street, Moss Point, MS (5/17/13)
Marshall was arrested on May 19, 2013, on a state warrant just days after the Hancock Bank robbery in Moss Point, and Kiel was arrested on a federal warrant in September 2013.
Two other co-defendants in the case, Lamarcus Moore and Reginald Robinson of Saraland, Alabama, have been sentenced after pleading guilty to related charges. Moore pled guilty to one count of bank robbery and one count of conspiracy to commit bank robbery, and Robinson pled guilty to conspiracy to commit bank robbery.
This case was investigated by the Federal Bureau of Investigation with substantial assistance from the FBI Safe Streets Task Force, FBI Laboratory in Quantico, Virginia, and the FBI Cellular Analysis Survey Team. Also assisting in the case were multiple federal, state and local law enforcement agencies with substantial assistance from the Mississippi and Alabama State Crime Labs. The case was prosecuted by Assistant U.S. Attorney Stan Harris and Assistant U.S. Attorney Jay Golden.