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8 October 2014
Mexican Man Sentenced to Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
On October 8, 2014, Juan Carlos Garcia-Gamino, 26, a citizen of Mexico, was sentenced to 57 months in prison for possession with intent to distribute 500 grams or more of methamphetamine in Lincoln. Garcia-Gamino was ordered to serve four years on supervised release following the prison term. However, it is likely he will be deported upon completion of his prison sentence.
In December of 2013 and January of 2014, Garcia-Gamino sold one-ounce quantities of methamphetamine to an undercover officer in Lincoln on three occasions. On April 4, 2014, Garcia-Gamino was contacted in Lincoln and consented to a search of his car. During that search, officers found 906 grams, (approximately two pounds), of a substance later found to contain methamphetamine.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Mexican Citizen Sentenced to Six Years' Imprisonment for Unlawful Use of Identification Documents and Aggravated Identity TheftRead the Press Release
A Mexican citizen who was twice convicted using the identity of a dead American citizen who attempted to obtain new identification documents and gain employment in that name was sentenced today to six years in federal prison.
Abel Fajardo-Guizar, age 38, a citizen of Mexico, living in Cedar Rapids, Iowa, received the prison term after a May 7, 2014, guilty plea to two counts of unlawful use of identification documents and two counts of aggravated identity theft.
In a plea agreement, Fajardo-Guizar admitted he was twice convicted under the name of another real person who died in 1995. Fajardo-Guizar was convicted under the other person’s name in Texas in 2001 for importing marijuana into the United States and in Iowa in 2010 for possession of a firearm by a felon and unlawful drug user. On November 22, 2013, while falsely claiming to be a U.S. citizen, Fajardo-Guizar used the date of birth, the Social Security Card and Social Security Number of another real person, someone he personally knew, to obtain a State of Iowa Identification Card in that person’s name. On December 18, 2013, again falsely claiming to be a U.S. citizen, Fajardo-Guizar used the date of birth, the Social Security Card and Social Security Number of another real person, and the recently acquired State of Iowa Identification Card when completing forms required to work in this country. On March 1, 2014, Fajardo-Guizar attempted to obtain a State of Iowa driver’s license using that the name, date of birth and Social Security Number of that other real person. When arrested on Federal charges on March 19, 2014, defendant had in his possession that other person’s birth certificate.
Fajardo-Guizar was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Fajardo-Guizar was sentenced to 72 months’ imprisonment. A special assessment of $400 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Fajardo-Guizar is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Assistant United States Attorney Daniel C. Tvedt and was investigated by agents from the Department of Homeland Security, Immigration and Customs Enforcement.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-38.
Metairie Man, Timothy Duckworth, Charged with Making False Statements on Tax ReturnRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TIMOTHY DUCKWORTH, age 44, of Metairie, Louisiana, was charged today in a one-count Bill of Information with making false statements on income tax returns.
According to the Bill of Information, DUCKWORTH made false statements on his tax return for the year 2007 by under-reporting his income in the amount of approximately $610,495, which resulted in DUCKWORTH having taxes due and owing in the amount of approximately $213,579.
If convicted, DUCKWORTH faces a maximum term of imprisonment of three years incarceration, one year of supervised release after any term of imprisonment, and a $100,000 fine.
United States Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Internal Revenue Service – Criminal Investigations. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
(Download Bill of Information )
Merrick Doctor Arrested for the Illegal Distribution of Oxycodone to an Undercover Police OfficerRead the Press Release
Michael Belfiore, an Merrick, New York, doctor, was charged this morning pursuant to a criminal complaint1 with illegally distributing oxycodone, a highly addictive prescription pain medication. The defendant is scheduled to be arraigned this afternoon before United States Magistrate Judge Gary R. Brown at the United States Courthouse located in Central Islip, New York.
The charge was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, James J. Hunt, Acting Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York, and Thomas C. Krumpter, Acting Commissioner, Nassau County Police Department (NCPD).
This morning, as part of a federal and state Prescription Drug Initiative in the Eastern District of New York, Belfiore surrendered to members of a DEA Tactical Diversion Squad, comprising DEA agents and officers of the Nassau County Police Department, Rockville Centre Police Department, and Port Washington Police Department, on charges of illegally distributing oxycodone between March 15, 2013 and August 12, 2013. According to the complaint, over the course of six months, Belfiore issued six prescriptions for oxycodone to an undercover Nassau County Police Officer without a legitimate medical purpose in exchange for thousands of dollars.
United State Attorney Lynch stated, “Dr. Belfiore used his prescription-writing privileges not to help patients as was his duty but to pad his bank account. Doctors who issue prescriptions without a legitimate medical need are violating the law and will be held accountable.” Ms. Lynch extended her grateful appreciation to each of the law enforcement agencies for their assistance in this case.
DEA Acting Special Agent in Charge stated, “There is no excuse for doctors to write unnecessary prescriptions in exchange for cash, nor has there ever been. Dr. Belfiore has been added to the list of those who perpetuate the spread of opioid addiction by allegedly facilitating the distribution of over half a million of oxycodone throughout the streets of Long Island. I commend the men and women of the Long Island Tactical Diversion Squad and the US Attorney’s Office Eastern District of New York for their tenacious work on this investigation.”
Oxycodone is a scheduled controlled substance that may be dispensed by medical professionals only for a legitimate medical purpose in the usual course of a doctor’s professional practice. It is a powerful and highly addictive drug and is increasingly abused because of its potency when crushed into a powder and ingested, leading to a heroin-like euphoria.
If convicted, the defendant faces a maximum sentence of 20 years’ imprisonment and a $1 million fine.
This case is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative. In January 2012, this Office and the DEA, in conjunction with the five District Attorneys in this jurisdiction, the Nassau and Suffolk County Police Departments, the New York City Police Department, and New York State Police, along with other key federal, state, and local government partners, launched the Prescription Drug Initiative to mount a comprehensive response to what the United States Department of Health and Human Services’ Center for Disease Control and Prevention has called an epidemic increase in the abuse of so-called opioid analgesics. So far, the Prescription Drug Initiative has brought over 160 federal and local criminal prosecutions, including the prosecution of 15 health care professionals, taken civil enforcement actions against a hospital, a pharmacy, and a pharmacy chain, removed prescription authority from numerous rogue doctors, and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The government’s case is being prosecuted by Assistant United States Attorney Lara Treinis Gatz.
The Defendant:
Name: MICHAEL BELFIORE
Age: 51
Residence: Westbury, New York
___________________________________________________________________________
1 The charge announced today is merely an allegation, and the defendant is presumed innocent unless and until proven guilty.
Belfiore Complaint
Member of A Major Methamphetamine Distribution Conspiracy Is Sentenced to Serve 18 Years in Federal Prison on Conspiracy and Money Laundering ConvictionsRead the Press Release
DALLAS — A member of a major methamphetamine distribution conspiracy that operated in the Dallas-Fort Worth metroplex and elsewhere since October 2012, was sentenced this afternoon in federal court in Dallas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Adiel Fuentes, a/k/a “Mack,” 34, of Dallas, was sentenced by U.S. District Judge Jorge A. Solis to 216 months in federal prison for conspiring to possess with intent to distribute and distribute 500 grams or more of methamphetamine and 180 months in federal prison for conspiring to launder monetary instruments. Judge Solis ordered the sentences run concurrently. Fuentes previously agreed to forfeit a vehicle and two firearms.
This summer, the local cell head of the conspiracy, Gerardo Cisneros, aka “Tatuado,” “Gera,” and “Jerry,” 27, was sentenced by Judge Solis to serve a total of 20 years in federal prison. Cisneros pleaded guilty in October 2013 to the same offenses and agreed to forfeit five vehicles and a firearm.
Fuentes and Cisneros have been in custody since their arrest in August 2013 when special agents with the Drug Enforcement Administration (DEA) and other law enforcement members executed numerous arrest warrants for defendants charged in the methamphetamine conspiracy as outlined in a federal indictment returned the previous month. The methamphetamine was imported into the U.S. from Mexico, and it was delivered to the Dallas area for distribution.
According to documents filed in the case, Cisneros acted as the local cell head of the conspiracy. He worked with co-defendants to set up a receipt and distribution center for controlled substances, including methamphetamine and marijuana. Cisneros admitted that he received and distributed methamphetamine in multi-kilo quantities, collected money from his customers and returned money to his supply source in Mexico. Cisneros admitted sending money to Mexico via couriers to conceal the nature, location, source, ownership or control of the drug proceeds.
Fuentes admitted collecting drug proceeds at Cisneros’ request and delivering the drug proceeds to Cisneros so that Cisneros would continue to supply Fuentes and others with the methamphetamine.
Fuentes and Cisneros also admitted conspiring to launder money. During this conspiracy, they collected drug proceeds from the sale of methamphetamine and sent the money to individuals in Mexico. The money was sent to Mexico so that their source of supply would continue to send them methamphetamine and so that they could continue to profit from their illegal activity.
Twenty-four defendants were charged in the conspiracy. The case against one defendant was dismissed, and one defendant is awaiting trial. All other captured defendants have pleaded guilty and have been sentenced or are awaiting sentencing.
This Organized Crime and Drug Enforcement Task Force (OCDETF) case was investigated by the DEA, the Dallas Police Department, Grand Prairie Police Department, Garland Police Department, Rockwall Police Department and the Arlington Police Department.
Assistant U.S. Attorney George Leal is leading the prosecution with assistance from Assistant U.S. Attorneys Brian Poe and John DeLaGarza.
Manager of Three Los Angeles Medical Clinics Indicted in $4 Million Medicare Fraud SchemeRead the Press Release
An indictment was unsealed today charging two managers and operators of three Los Angeles medical clinics with Medicare fraud and conspiracy to pay illegal kickbacks for medical procedures that were never actually provided.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Acting U.S. Attorney Stephanie Yonekura of the Central District of California; Special Agent in Charge Glenn R. Ferry of the Los Angeles Region of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and Assistant Director in Charge Bill Lewis of the FBI’s Los Angeles Field Office made the announcement.
Hovik Simitian, 47, of Los Angeles, and Anahit Shatvoryan, 49, of Glendale, California, were each charged in the Central District of California with one count of conspiracy to commit health care fraud, six counts of health care fraud and one count of conspiracy to pay health care kickbacks.
According to allegations in the indictment, Simitian and and Shatvoryan managed and operated three medical clinics – Columbia Medical Group Inc., Life Care Medical Clinic and Safe Health Medical Clinic – out of two suites in the same Los Angeles office building. From approximately February 2010 through June 2014, Simitian and Shatvoryan paid marketers illegal kickbacks to recruit Medicare beneficiaries to the clinics. They then submitted false claims to Medicare for services – including procedures such as anorectal manometry and nerve conduction tests – that were not medically necessary and never actually provided.
From approximately February 2010 through June 2014, the clinics allegedly submitted a total of $4,526,791 in false and fraudulent claims to Medicare, and Medicare paid $1,668,559 on those claims.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. This case is being prosecuted by Trial Attorneys Blanca Quintero and Alexander F. Porter of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Luzerne Man Charged with Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a criminal Information was filed yesterday charging a Pittston resident with participating in a conspiracy to distribute heroin during January 2010 through February 2014.
According to United States Attorney Peter Smith, the Information alleges that Sal Biscotto, age 38, conspired with others to distribute and possess with intent to distribute heroin in Luzerne County and elsewhere.
The charge stems from an investigation by special agents of the Federal Bureau of Investigation and Pittston Police.
Biscotto faces a potential maximum sentence of 20 years in prison and a $1 million fine if he is convicted of the charge.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Lawn Care Business Owner Pleads Guilty to Lying to Receive Workers' Compensation BenefitsRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced that a Breaux Bridge man pleaded guilty to falsely claiming he was unemployed in order to continue receiving workers’ compensation benefits even though he owned and operated a lawn care business.
Mervin J. Noel, 51, of Breaux Bridge, La., entered a conditional guilty plea Tuesday to one count of making false statements to continue receiving workers’ compensation benefits under the Longshore and Harbor Workers’ Compensation Act to U.S. Magistrate Judge C. Michael Hill. The plea will become final when accepted by U.S. District Court Judge Elizabeth E. Foote.
According to evidence presented at the guilty plea, Noel began receiving workers’ compensation and Social Security disability benefits after sustaining an injury while working on an offshore oil platform in 1994. In 2007, Noel began operating a lawn care business without informing either the Louisiana Workers’ Compensation Corporation (LWCC) or Social Security Administration that he was employed and earning income. Noel instead falsely reported on four occasions to LWCC officials that he had no earnings from employment. Noel also falsely reported to Social Security Administration officials on April 11, 2014 that he had not worked since becoming disabled. Noel received $20,776 in workers’ compensation benefits and $118,220 in Social Security benefits to which he was not entitled.
Noel faces up to five years in prison, three years supervised release, and a $10,000 fine. A sentencing date of February 6, 2015 has been set.
The investigation was conducted by the Social Security Administration. Assistant U.S. Attorney David C. Joseph is prosecuting the case.
Larose Man, Justin Doucet, Sentenced to 5 Years for <br /> Receipt of Child PornographyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JUSTIN DOUCET, age 21, a resident of Larose, Louisiana, was sentenced today for receipt of child pornography.
U.S. District Judge Helen G. Berrigan sentenced DOUCET to 5 years imprisonment, followed by 5 years of supervised release, and restitution of $8,000 to the victims. In addition, DOUCET will have to register as a sex offender.
According to court documents, on February 8, 2012, Special Agents of the Federal Bureau of Investigation obtained and executed a search warrant for evidence of child pornography at the defendant’s residence. During the search, Special Agents seized several pieces of computer equipment that were later determined to contain child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Polite praised the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney G. Dall Kammer is in charge of the prosecution.
Lafayette, Tennessee, Man Sentenced to 240 Months in Prison After Pleading Guilty to Two Bank Robberies in Kentucky and CarjackingRead the Press Release
BOWLING GREEN, Ky. – A Lafayette, Tennessee, man was sentenced today in United States District Court by Senior District Judge Thomas B. Russell to 240 months in prison followed by a three year period of supervised release and ordered to pay $90,800 in restitution, for the robbery of two banks located in Kentucky, and one-count carjacking in Adair County, Kentucky, announced David J. Hale, United States Attorney for the Western District of Kentucky.
On July 9, 2014, Eugene Earl Gentry, age 63, pleaded guilty to four counts of a federal indictment including two counts of bank robbery through force, violence, and intimidation, one count of brandishing a firearm during a crime of violence and one count of carjacking. Gentry admitted in court to robbing the United Citizens Bank, located at 1582 Campbellsville Road, in Columbia, Kentucky, of approximately $90,000 on October 15, 2012. On the same day, in Adair County, Kentucky, Gentry stole a 1998 Ford Ranger Pickup from United Citizens Bank manager and in doing so brandished a semi-automatic handgun which carries an additional charge of carjacking. One year later, on October 29, 2013, Gentry attempted to rob the Citizens Bank, located at 209 Campbellsville Bypass, located in Campbellsville, Kentucky. Gentry fled from the bank and was pursued by Campbellsville Police until his car crashed in to a parked 18-wheel style truck trailer loaded with logs. The loaded Hi-Point C9, 9mm semi-automatic pistol, found on Gentry at the crash scene was traced and came back as being sold to him in 2004.
This case was prosecuted by Assistant United States Attorney Randy Ream and was investigated by the Federal Bureau of Investigation (FBI) with assistance from the Campbellsville Police Department, Columbia Police Department and the Adair County, Kentucky, Sheriff’s Department.
Jacksonville Cocaine Dealer Sentenced to More Than 19 Years in Federal PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Henry Lee Adams, Jr. today sentenced Amelio Mack to 19 years and seven months in federal prison for conspiracy to distribute cocaine. The Court also ordered him to forfeit two bank accounts, three vehicles, and jewelry, including a 4.8 karat engagement ring, that are traceable to proceeds of the offense. Mack pleaded guilty on May 12, 2014.
According to court documents, between 2005 and February 2014, Mack, who has a prior federal gun conviction, distributed in excess of 150 kilograms of cocaine in the Jacksonville area. At the time of his arrest, February 2014, law enforcement officers seized two firearms, $281,850 in cash, and other evidence linking him to the crime.
This case was investigated by the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Julie Hackenberry.
Governor’s Former Campaign Manager Sentenced to Prison for Computer Intrusion and False Statement ConvictionRead the Press Release
ALBUQUERQUE – Jamie Estrada, 41, of Los Lunas, N.M., was sentenced today by U.S. District Judge William P. Johnson for his conviction on unlawful interception of electronic communications and false statement charges arising out of the unlawful interception of wire communications intended for others, including New Mexico Governor Susana Martinez and members of her staff. Estrada was sentenced to nine months of imprisonment followed by three years of supervised release. Estrada also was ordered to perform 100 hours of community service and to pay a $10,000 fine. Estrada is to voluntarily surrender to a federal correctional institution to be designated by the U.S. Bureau of Prisons.
In announcing Estrada’s sentence, U.S. Attorney Damon P. Martinez said, “This prosecution demonstrates the Justice Department’s commitment to protecting Americans from those who seek to violate their privacy. In an electronic age, much of our personal, professional and financial information is repeatedly transmitted on a daily basis by email and other wireless device. Each and every one of us has a right and an expectation of privacy in our electronic communications, including our emails, and individuals who violate the law by diverting, stealing or otherwise misappropriating our private communications should face serious consequences.”
“Jamie Estrada stole the emails that were the subject of this case, plain and simple. He took private information that didn't belong to him, and lied about it,” said Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division. “I thank the FBI special agents and professional staff for their hard work on this case, and congratulate the U.S. Attorney’s Office for a successful prosecution. This sentencing occurs during National Cyber Security Awareness Month, which since 2004 has reminded Americans of the importance of protecting our own privacy online as well as our country's national security.”
Estrada was charged in a 14-count indictment filed in May 2013. The first 12 counts of the indictment alleged that, between July 2011 and June 2012, Estrada unlawfully intercepted wire communication intended for individuals who had email accounts on an internet domain owned by the Governor’s political organization. The final two counts charged Estrada with making false statements to the FBI in Sept. 2012, in which he denied taking certain actions to unlawfully intercept wire communications as charged in first 12 counts of the indictment. The indictment subsequently was superseded in Oct. 2013 and May 2014 to add two more false statement charges.
According to court filings, in summer 2009, Governor Martinez, who was then the District Attorney in Dona Ana County, N.M., began assembling a political campaign as she prepared to enter the Nov. 2010 gubernatorial race. In July 2009, a political supporter of the Governor registered an internet domain designated as susana2010.com (the Domain) for a two-year period through an online service. The supporter donated the Domain, including its username and password, to the Governor’s political organization. The username and password were required for making administrative changes to the Domain, including posting content to the Domain’s website and creating email accounts associated with the Domain. They also were required to renew the registration for the Domain, which was scheduled to expire on July 18, 2011. As the owner of the Domain, the Governor’s political organization had the exclusive right to renew the registration before it expired and during a 42-day grace period following the expiration date.
During the gubernatorial campaign, the Domain became an important tool for the Governor’s political organization. Members of the campaign staff, including the Governor, maintained email accounts on the Domain which they used to communicate with each other, the Governor’s political supporters, and the media. Estrada, who joined the Governor’s political organization as the campaign manager in July 2009, was provided with the username and password for the Domain. When Estrada left the campaign in Dec. 2009, the Governor requested that he cooperate in efforts to remove his access to and privileges regarding the campaign’s accounts.
After Governor Martinez was inaugurated in Jan. 2011, the Governor, members of her staff and others continued to use the email accounts associated with the Domain. In July 2011, individuals who had email accounts on the Domain began receiving reports that emails sent to those accounts were bouncing back to the senders and soon determined that the emails were not getting delivered because the Domain had expired. Their efforts to re-register the Domain were unsuccessful because they could not locate or recall the Domain’s username and password. In July 2011 and as part of their efforts to locate the username and password, the Governor’s staff asked Estrada to provide this information and he did not respond.
On June 16, Estrada entered guilty pleas to Counts 6 and 16 of the second superseding indictment, charging him with unlawful interception of electronic communications and false statements, respectively. In his plea agreement, Estrada admitted that on July 29, 2011, he logged onto the Domain and altered the customer profile using a fictitious name with a Colorado address. Estrada also admitted renewing the Domain under the fictitious name and paid for the renewal with a pre-paid gift card so that the renewal could not be traced back to him.
According to the plea agreement, Estrada changed the settings for the Domain to direct all incoming email to an email account he controlled so that the emails were routed to him instead of the intended recipients. From July 2011 through June 2012, Estrada intercepted hundreds of email messages intended for recipients at the Domain, including the Governor. The intercepted emails included personal emails, internal political communications and emails from ordinary citizens to the Governor or her staff. In his plea agreement, Estrada admitted sharing the emails he unlawfully intercepted with the Governor’s political opponents to disseminate the emails to news media and other outlets.
Estrada admitted unlawfully intercepting an email dated Jan. 4, 2012, which was entitled “Confidential RGA [Republican Governors’ Association] Update” and was intended for the Governor, as charged in Count 6 of the second superseding indictment. In his plea agreement, he also acknowledged unlawfully intercepting the eleven other emails described in Counts 1 through 5 and 7 through 12 of the indictment.
Estrada also admitted making false statements to FBI agents on Sept. 19, 2012, when they executed a search warrant at his residence. Specifically, Estrada told the FBI agents that he had not paid for the renewal of the Domain using a pre-paid gift card as charged in Count 16 of the second superseding indictment. In his plea agreement, he also acknowledged making the false statements charged in Counts 13, 14 and 15 of the indictment.
This case was investigated by the Albuquerque Division of the FBI and is being prosecuted by Assistant U.S. Attorneys Fred J. Federici and Jeremy Pena.
Goodwin Charges Mason County Man with Swindling Elderly CoupleRead the Press Release
Defendant defrauded couple out of $210,000 in bogus investment scheme, charge says
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin today charged Mark Anthony, 40, of Point Pleasant, West Virginia, with defrauding a senior-citizen couple in Mason County.
Between May 2004 and January 2013, Anthony solicited approximately $210,000 from his victims, according to today's charge. Anthony falsely represented to the victims that their money would be invested in annuities and money market accounts offered by legitimate financial-services companies and that the investments would yield substantial returns. In reality, Anthony simply spent the victims' money on his own personal expenses and purchases. Anthony's fraud scheme continued after the husband in the victim couple passed away in 2007, leaving the wife widowed.
As part of the scheme, Goodwin says, Anthony used the United States Postal Service to send the victims checks that were purportedly income from investments he made for them, along with IRS forms that pretended to reflect their investment income. The checks were actually from Anthony’s personal funds and were intended to trick the victims into believing that Anthony had placed their money in legitimate investment accounts. The IRS forms were also fraudulent.
“Sadly, elderly West Virginians too often become the targets of financial fraud,” said U.S. Attorney Goodwin. “Preventing that fraud and prosecuting those who perpetrate it have always been top priorities for me, and this case builds on that commitment.”
Today’s charge was filed in a court document known as an “information.”
The investigation is being conducted by the West Virginia State Police Bureau of Criminal Investigation. Counsel to the United States Attorney Steven Ruby and Assistant United States Attorney Gabriele Wohl are handling the prosecution.
Click here to view a copy of the information.
Note: An information is only a charge and is not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.
Get Away Driver Pleads Guilty to Three Bank RobberiesRead the Press Release
Committed Three Bank Robberies While on Supervised Release for Previous Gun Convictions
Greenbelt, Maryland – Dillian Nathaniel Tucker, age 36, of Greenbelt, Maryland, pleaded guilty today to three bank robberies.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to Tucker’s plea agreement, on April 6, Tucker drove himself and co-defendant Reginald Lasley to a SunTrust bank in Landover, Maryland. Lasley entered the bank, presented the teller with a note demanding money and took $4,810. Lasley got into the black van being driven by Tucker and they left the scene. On April 9 Tucker drove himself and Lasley to a Sun Trust Bank in Upper Marlboro, Maryland, in the same black van. Lasley again presented the teller with a note demanding money and stole $5,370, leaving the area in the van driven by Tucker.Two days later, on April 11, 2012, Tucker drove himself and Lasley in the same black van to the M&T Bank, in Largo, Maryland. Tucker entered the bank, approached a teller window, and asked for change. Tucker then exited the bank and advised Lasley to enter the bank to rob it. Several minutes later, Lasley entered the bank and handed the teller a note demanding money. The teller complied and Lasley stole $1,390. Lasley exited the bank, got into the black van, and Tucker drove away from the bank.
Later on April 11, 2012, Prince George’s County police officers saw the black van and attempted to pull it over. Tucker, who was still driving the van, made a quick U-turn and attempted to flee. After a short chase, Tucker stopped the van, and Tucker and Lasley attempted to run away. Police officers caught and arrested Tucker immediately. Lasley was caught later that day, and law enforcement officers recovered from Lasley a robbery demand note and the money stolen earlier from the M&T Bank. Officers also recovered from the black van another robbery demand note and the hat and shirt that Lasley wore during the M&T bank robbery.
Tucker committed each of the robberies while on supervised release in connection with firearm convictions in the Superior Court for the District of Columbia.
Tucker and the government have agreed that if the Court accepts the plea, Tucker will be sentenced to 92 months in prison. U.S. District Judge Peter J. Messitte has scheduled sentencing for January 8, 2015 at 9:30 a.m.
U.S. District Judge Peter J. Messitte previously sentenced Reginald Anthony Lasley, age 42, of Silver Spring, Maryland, to a total of 18 years in prison - 16 years for the robbery of a store and three bank robberies and an additional two years in prison for violating his supervised release in connection with previous federal bank robbery convictions. Judge Messitte also ordered Lasley to pay restitution of $29,150.
United States Attorney Rod J. Rosenstein praised the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Adam K. Ake, who is prosecuting the case.
Georgia Man Pleads Guilty in Scheme to File False Tax Returns Using Stolen IdentitiesRead the Press Release
PITTSBURGH - A resident of the State of Georgia pleaded guilty on Tuesday in federal court to a charge of wire fraud conspiracy, United States Attorney David J. Hickton announced today.
Rogers Ladell Price, Jr., 39, formerly of Summerville, Ga., and currently incarcerated, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, Price and others conspired to steal identities of other persons which were used to file false electronic federal tax returns between 2010 and 2012.
Judge Fischer scheduled sentencing for January 30, 2015 at 9 a.m. The law provides for a maximum total sentence of not more than 20 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 Internal Revenue Service-Criminal Investigation conducted the investigation that led to the prosecution of Price.
Fredericksburg Man Charged for Theft of Millions in Investments Promised for Development of Quantico Corporate Center and Other PropertiesRead the Press Release
RICHMOND, Va. – James Ashby Moncure, Jr., 42, of Fredericksburg, Va., was charged with five counts of Wire Fraud, one count of Mail Fraud, and two counts of Engaging in Unlawful Monetary Transactions. If convicted on all charges, Moncure faces up to 140 years in prison and a fine of $2,000,000.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); and Gary Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after the indictment was returned by the federal Grand Jury.
According to allegations in the indictment, Moncure, as a partial owner of Moncure Brothers LLC, partnered with The Silver Companies to develop property known as the Quantico Corporate Center (QCC). The QCC is a business park located in Stafford County, Va., along Interstate 95 and US 1, adjacent to Marine Corps Base Quantico. The indictment alleges that beginning prior to January 2010 and continuing through March 2014, Moncure solicited individuals for investment opportunities in exchange for short term promissory notes offering returns ranging from 10 percent up to 25 percent. In connection with those investments, the indictment charges, Moncure represented that the investment funds would be used for acquiring and developing land for the QCC or another specified property. The defendant also allegedly made misrepresentations about how the promised returns would be generated and about the security of investment funds.
The indictment alleges that Moncure misappropriated the overwhelming majority of the more than $9 million in investment funds he received, using them for payment of returns to earlier investors, transfers to investment trading accounts from which the defendant day-traded stocks and options, and other unauthorized purposes. The indictment charges several transactions where the defendant received investment funds, followed by the defendant’s immediate wire transfer of those same funds to his Options Express, Inc., or Fidelity Investments trading accounts.
This case was investigated by FBI’s Fredericksburg Field Office, Internal Revenue Service-Criminal Investigations, and U.S. Postal Inspection Service. Assistant U.S. Attorney Michael Gill is prosecuting the case on behalf of the United States.This investigation has been coordinated by the Virginia Financial and Securities Fraud Task Force, an unprecedented partnership between criminal investigators and civil regulators to investigate and prosecute complex financial fraud cases in the nation and in Virginia. The task force is comprised of several federal and state agencies, including the Virginia Attorney General’s Office, and it also serves as an investigative arm of the President’s Financial Fraud Enforcement Task Force (FFETF), an interagency national task force. For more information on FFETF, visit www.stopfraud.gov.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the EasternDistrict of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER.
Former Union President Sentenced to 18 Months in Prison for Extortion Conspiracy Involving Christmastime Tribute PaymentsRead the Press Release
NEWARK, N.J. - The former president of the International Longshoremen’s Association (ILA) Local 1235 was sentenced today to 18 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.
Vincent Aulisi, 82, of West Orange, New Jersey – the president of ILA Local 1235 from 2006 through 2007 – 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: Aulisi and two other former ILA officers – Thomas Leonardis, 57, of Glen Gardner, New Jersey, the president of the union from approximately 2008 through 2011; and Robert Ruiz, 55, of Watchung, New Jersey, the delegate of the union from approximately 2007 through 2010 – 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.
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 Aulisi to serve one year of supervised release and fined him $10,000.
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.
14-367Defense counsel: Joseph Fusella Esq., Bloomfield, New Jersey
Former Union President Sentenced to 18 Months in Prison for Extortion Conspiracy Involving Christmastime Tribute PaymentsRead the Press Release
NEWARK, N.J. B The former president of the International Longshoremen’s Association (ILA) Local 1235 was sentenced today to 18 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.
Vincent Aulisi, 82, of West Orange, New Jersey – the president of ILA Local 1235 from 2006 through 2007 – 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:
Aulisi and two other former ILA officers – Thomas Leonardis, 57, of Glen Gardner, New Jersey, the president of the union from approximately 2008 through 2011; and Robert Ruiz, 55, of Watchung, New Jersey, the delegate of the union from approximately 2007 through 2010 – 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.
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 Aulisi to serve one year of supervised release and fined him $10,000.
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.
14-367
Defense counsel: Joseph Fusella Esq., Bloomfield, New Jersey
Former Recruiter Sentenced for Stealing from National GuardRead the Press Release
CHARLESTON, W.Va. – Richard Lilly, 47, of Cross Lanes, West Virginia was sentenced in federal court in Charleston today to five years of probation and ordered to pay $13,500 in restitution for stealing from the West Virginia National Guard, announced United States Attorney Booth Goodwin. Lilly had previously plead guilty on May 20, 2014, to theft of government funds.
Lilly, who had served as a recruiter for the Guard since 2006, stole recruiting bonuses intended to reward Guard members for referring others who enlisted. Between June of 2008 and May of 2010, Lilly stole $13,500 dollars in bonus payments intended for others. Lilly is no longer a member of the Guard.
The investigation was conducted by the Federal Bureau of Investigation, assisted by investigators with the West Virginia National Guard. Assistant United States Attorney Erik S. Goes is in charge of the prosecution.
Former Postal Service Employee Indicted for Scheme to Defraud the Workers Compensation ProgramRead the Press Release
Greenbelt, Maryland - A federal grand jury has indicted Larosa Bolton, age 53, of Laurel, Maryland, today on charges of theft of government property and making false claims in connecting with fraudulent claims for medical travel expenses.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Paul Bowman of the U.S. Postal Service, Office of Inspector General; and Special Agent in Charge Bill Jones, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
According to the indictment, Bolton was employed by the U.S. Postal Service as a city carrier at the Laurel post office. Between 1993 and 1998, she sustained three separate injuries, all of which qualified her to receive workers compensation benefits. As part of the program, beneficiaries, such as Bolton, are entitled to reimbursement for travel expenses to and from medical appointments related to the relevant injury, even if the employee returns to work. Bolton began receiving workers compensation benefits in 2001.
The two-count indictment alleges that between January 2008 and July 2014, Bolton received compensation for travel expenses for medical care relating to one of Bolton’s injury claims. Specifically, Bolton submitted vouchers for travel expenses for 1,170 trips for medical care. The indictment alleges that 89 of those trips were for medical care, but no medical care occurred for the remaining 1,081 trips that Bolton claimed. As a result of the fraudulent vouchers submitted by Bolton, the indictment alleges that she was paid at least $96,563.26 in reimbursement for travel to which she was not entitled and the indictment seeks forfeiture in that amount.
Bolton faces a maximum sentence of 10 years in prison for theft of government property and for making a false statement. No court appearance has been scheduled for Bolton.
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 Department of Labor- Office of Inspector General, Office of Labor Racketeering and Fraud Investigations and the U.S. Postal Service Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Hollis Raphael Weisman, who is prosecuting the case.
Former Charter School Principal Pleads Guilty in Connection to MCAS CheatingRead the Press Release
BOSTON – A former Springfield charter school principal pleaded guilty today in U.S. District Court to a federal felony in connection with assisting students to cheat on the MCAS.
Janet Henry, 42, pleaded guilty to an Information charging her with committing mail fraud. U.S. District Judge Mark G. Mastroianni scheduled sentencing for Jan. 8, 2015.
According to the Information, in 2009 Henry became Principal of the Robert M. Hughes Academy Charter School in Springfield. In March and April 2009, the Massachusetts Comprehensive Assessment System (MCAS) tests were administered to the student body during which time Henry instructed teachers to give clues and other tips to students. For example, if teachers saw students entering nonsense answers, then they were to tell students to review their answers again. During preparation meetings, Henry stated to teachers that “this is where we earn our money,” and warned that the school could close or everyone would lose their jobs, if the test scores were not satisfactory. According to the statement of fact filed in the case, Henry was acting under the pressure form a member of the charter school’s board of directors.On April 16, 2009, upon the completion of the MCAS examinations, Henry falsely certified that the tests had been administered honestly.
The charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz, Brian M. Hickey, Special Agent in Charge of the U.S. Department of Education, Office of Inspector General, Northeast Region, and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant United States Attorney Kevin O'Regan of Ortiz’s Springfield Office.
Former Booster Club President Guilty of Wire FraudRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 53-year-old Beaumont man has pleaded guilty to wire fraud charges in the Eastern District of Texas, announced U.S. attorney John M. Bales.
William Elzy Kelley, Jr., also known as Bo Kelley, pleaded guilty to an Information charging him with wire fraud today before U.S. District Judge Marcia Crone.
According to information presented in court, Kelley was president of the West Brook High School Football Booster Club from 2012 to February 2014. During which time Kelley had access to the Booster Club’s funds, which were kept in separate checking and savings accounts. From Sep. 2013 through Feb. 2014, Kelley withdrew funds from these accounts to pay personal expenses, including, but not limited to rent payments at Stoneleigh Apartments, college tuition, and other household bills. Kelley carried out the scheme by withdrawing cash and depositing it into his personal bank account and by using the debit card and writing checks on the account for his personal use. Kelley is specifically charged with using the Booster Club debit card to make a payment to Stoneleigh Apartments in the amount of $922.42 on Dec. 3, 2013.
Kelley faces up to 20 years in federal prison. A sentencing date has not been set.
This case was prosecuted as part of the Joint Task Force established in March 2014 between the U.S. Attorney’s Office for the Eastern District of Texas and the Jefferson County District Attorney’s Office to investigate and prosecute major crimes – more specifically, violent crime and crimes related to the abuse of public trust in Jefferson County, Texas.
“We have all been terribly disappointed with instance after instance of graft, abuse of authority and now, in Mr. Kelly’s instance, just plain theft,” said U.S. Attorney Bales. “This defendant masqueraded as a volunteer who only had West Brook’s best interests at heart – instead, he looted the booster club and so now he will join the growing parade of those who will be held accountable for violating our trust.”
"Today's guilty plea is a prime example that our investigations are not limited to only public entities, but actually encompass a broad range of fraud involving related organizations and associations,” said Jefferson County District Attorney Cory Crenshaw.
If you have any information related to this or any other matter related to fraud, please call the Federal Bureau of Investigation at 409-832-8571.This case is being investigated by the Federal Bureau of Investigation, the Beaumont Police Department, and the Jefferson County District Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorneys Joseph R. Batte and Christopher T. Tortorice.
Five Sentenced for Involvement in Aryan Brotherhood of Texas Racketeering ConspiracyRead the Press Release
Five Aryan Brotherhood of Texas (ABT) gang members from Dallas were sentenced to prison this week for their roles in the violent ABT enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Today, James Lawrence Burns, 44, and Kenneth Hancock, 34, high-ranking members in the ABT’s hierarchical structure, were ordered to serve respective terms of 20 and 15 years in federal prison by U.S. District Judge Sim Lake in the Southern District of Texas. Yesterday, Dustin Harris, 30, and Christopher Morris, 39, were each ordered to serve 10 years in prison, while Clay Kirkland, 35, received a sentence of more than 11 years in prison. An additional defendant – Bill Frank Weatherred, 29 – will be sentenced tomorrow.
According to information presented in court, the six men were admitted members of ABT, a powerful race-based, statewide organization that operates inside and outside of state federal prisons throughout Texas and the United States. Along with other ABT gang members and associates, they agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
The ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. Previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism, but over time, the ABT has expanded its criminal enterprise to include illegal activities for profit, according to court records.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
In order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
The defendants sentenced this week are six of 36 defendants convicted of conducting racketeering activity through the ABT criminal enterprise, among other charges.
This Organized Crime Drug Enforcement Task Force case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement, Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite, Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.
The case is being prosecuted by David Karpel of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Ed Gallagher and Tim Braley of the Southern District of Texas.
- Five Sentenced for Involvement in Aryan Brotherhood of Texas Racketeering Conspiracy
- Five Men Charged in Large-Scale Cocaine and Money Laundering Conspiracy
Federal Inmate Sentenced to Life in Prison for Murdering Another InmateRead the Press Release
Federal inmate Kevin Marquette Bellinger, a former resident of Washington, D.C., and an inmate at the United States Penitentiary in Hazelton, West Virginia, was sentenced today to life in prison for the murder of another inmate.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney William J. Ihlenfeld II, for the Northern District of West Virginia made the announcement after sentencing by U.S. District Judge Irene M. Keeley of the Northern District of West Virginia.
Bellinger was convicted by a federal jury on June 16, 2014, of one count of murder by a federal prisoner serving a life sentence and one count of second degree murder in a federal facility for his role in the Oct. 7, 2007, murder of inmate Jesse Harris.
According to evidence presented at trial, during a move of inmates from the recreation yard back to their cells, Bellinger and a co-defendant left the yard ahead of the others and traveled to an intersection of two corridors in the prison facility, where they confronted Harris and stabbed him with shanks in an orchestrated attack. In less than a minute, an officer approached, and the attackers fled. Officers apprehended Bellinger after a short pursuit, but they did not recover his weapon. Surveillance footage of the attack showed Bellinger and his co-defendant engaged in a verbal exchange with Harris, followed by the two attackers wielding weapons and assaulting Harris, who was unarmed and backing away from them.
At the time of the murder, Bellinger was serving a life sentence for an assault with intent to kill that took place in 2000.
This case was investigated by the FBI and the U.S. Bureau of Prisons. The case was prosecuted by Trial Attorney Richard Burns from the Criminal Division’s Capital Case Section and Assistant U.S. Attorney Andrew Cogar and former Assistant U.S. Attorney Brandon Flower of the Northern District of West Virginia.
Federal Inmate Sentenced to Life in Prison for Murdering Another InmateRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Federal inmate Kevin Marquette Bellinger, a former resident of Washington, D.C., and an inmate at the United States Penitentiary in Hazelton, West Virginia, was sentenced today to life in prison for the murder of another inmate.
U.S. Attorney William J. Ihlenfeld, II, for the Northern District of West Virginia and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division made the announcement after sentencing by U.S. District Judge Irene M. Keeley of the Northern District of West Virginia.
Bellinger was convicted by a federal jury on June 16, 2014, of one count of murder by a federal prisoner serving a life sentence and one count of second degree murder in a federal facility for his role in the Oct. 7, 2007, murder of inmate Jesse Harris.
According to evidence presented at trial, during a move of inmates from the recreation yard back to their cells, Bellinger and a co-defendant left the yard ahead of the others and traveled to an intersection of two corridors in the prison facility, where they confronted Harris and stabbed him with shanks in an orchestrated attack. In less than a minute, an officer approached, and the attackers fled. Officers apprehended Bellinger after a short pursuit, but they did not recover his weapon. Surveillance footage of the attack showed Bellinger and his co-defendant engaged in a verbal exchange with Harris, followed by the two attackers wielding weapons and assaulting Harris, who was unarmed and backing away from them.
At the time of the murder, Bellinger was serving a life sentence for an assault with intent to kill that took place in 2000.
This case was investigated by the FBI and the U.S. Bureau of Prisons. The case was prosecuted by Assistant U.S. Attorney Andrew Cogar and former Assistant U.S. Attorney Brandon Flower of the Northern District of West Virginia and Trial Attorney Richard Burns from the Criminal Division’s Capital Case Section.
Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that a Federal Grand Jury in Columbia, South Carolina, returned Indictment(s) against the following: Unregistered Sex Offender Indicted
Shana Marie Lawson, age 36, of Lancaster, South
Carolina, was charged in a 1-count Indictment with failure to register as a sex offender, a violation of Title 18, United States Code, Section 2250(a). The maximum penalty Lawson could receive is
10 years imprisonment. The case was investigated by agents of the United States Marshals
Service and is assigned to Assistant United States Attorney William E. Day, II of the Columbia office for prosecution.
Columbia Man Indicted For Defrauding The Department Of Veterans Affairs
Bobby Joe Haynes, age 60, of Columbia, South Carolina, was charged in a 1-count Indictment with converting over $1,000.00 belonging to the United States Department of Veterans Affairs from March 2011 to October 2013, a violation of Title 18, United States Code, Section 641. The maximum penalty Bobby Joe Haynes could receive is 10 years imprisonment. The case was investigated by agents of the Department of Veterans Affairs, Office of Inspector General and is assigned to Assistant United States Attorney William E. Day, II, of the Columbia office for prosecution.
Fort Lawn Man Indicted for Defrauding the Social Security Administration
Gerald W. Costner, age 70, of Fort Lawn, South Carolina, was charged in a 1-count Indictment with converting over $1,000.00 belonging to the Social Security Administration from June 1992 to January 2014, a violation of Title 18, United States Code, Section 641. The maximum penalty Gerald W. Costner could receive is 10 years imprisonment. The case was investigated by agents of the United States Office of Inspector General, Social Security Administration and is assigned to Assistant United States Attorney William E. Day, II, of the Columbia office for prosecution. The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.Federal Grand Jury Hands Down Superseding Indictment Against Stephen M. Howells Ii and Nicole F. VaiseyRead the Press Release
SYRACUSE, NEW YORK – United States Attorney Richard S. Hartunian announced that a federal grand jury in Syracuse has handed down a 21 count superseding indictment against defendants STEPHEN M. HOWELLS II and NICOLE F. VAISEY. The superseding indictment, filed today, accuses HOWELLS with child exploitation offenses in all 21 counts, and charges VAISEY together with HOWELLS in 10 of the counts.
The superseding indictment specifies six different victims of the charged offenses.
HOWELLS, age 39, and VAISEY, age 25, both of Hermon, NY, are charged with one count (Count 1) of conspiracy to sexually exploit children between September 2013 and August 2014. They are also charged together with nine substantive counts (Counts 2 – 10) of exploiting three of the children during that time period. The nine counts represent nine separate dates on which the exploitation occurred.
In addition, HOWELLS is charged alone in six additional substantive counts (Counts 11 – 16), representing six additional dates, for the exploitation of four children.
The final five counts (Counts 17 – 21) of the superseding indictment charge HOWELLS with the possession of child pornography on each of five separate hard drives recovered from his residence. It is alleged that the images and video files possessed on these drives involve images of prepubescent minors and minors under the age of 12. The images and videos charged in these counts are separate and apart from those charged in the first 16 counts of the superseding indictment.*
HOWELLS and VAISEY face imprisonment of at least 15 years imprisonment, and up to 30 years on the conspiracy charge, and on each of the substantive exploitation counts. HOWELLS also faces a maximum sentence of 20 years on each of the possession counts. Conviction on any count requires a term of supervised release of a minimum of 5 years and up to life to follow any term of incarceration. In addition, conviction on any count of the superseding indictment will require HOWELLS and VAISEY to register as sex offenders.
United States Attorney Richard S. Hartunian said, “Sexual exploitation of minors is the most depraved, predatory abuse of our children. We will continue our efforts to make certain that every offense these defendants have committed is prosecuted to the fullest extent of the law. Our goal is that they will never be near children again.” Special Agent in Charge, Andrew W. Vale of the Federal Bureau of Investigation, Albany Division, stated, “This case epitomizes law enforcement's ability to keep our children safe when federal, state, and local agencies work together. The FBI will continue to work with our law-enforcement partners to identify any additional crimes committed by these defendants.”
St. Lawrence County Sheriff Kevin Wells stated, “As the lead County law enforcement agency in this case, we appreciate the teamwork in discovering and identifying these additional victims. The interagency cooperation in this investigation has been invaluable. We will continue our efforts and work with our law enforcement partners to ensure that these defendants are brought to justice for any crimes they have committed.”
St. Lawrence County District Attorney Mary E. Rain stated, “The St. Lawrence County District Attorney’s Office is pleased our Federal partners in prosecution are vigilantly pursuing charges which provide greater penalties than those New York law affords. From the beginning of this case, our Federal partners have bestowed upon our community their expertise, experience, and vast resources for which we are much appreciative. “
This case is being investigated by the St. Lawrence County Sheriff’s Office, the Federal Bureau of Investigation, Albany Division, and the St. Lawrence County District Attorney’s Office, with substantial assistance from the New York State Police.
The case is brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.projectsafechildhood.gov.
*The charges are merely allegations; the defendants are presumed innocent until and unless proven guilty.
Essex County, N.J., Man Sentenced to Nearly 19 Years in Prison for 17 Armed Robberies, Armed Carjacking, and ShootingRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today To 225 months in prison for committing 17 armed robberies of commercial establishments throughout Union, Essex and Bergen counties, all within a six-month period, U.S. Attorney Paul J. Fishman announced.
Bobby Dawson, 31, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of committing an armed carjacking, one count of conspiring to commit Hobbs Act robberies and one count of discharging a firearm during the commission of one of those robberies. Judge Walls imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
Dawson conspired with others to rob commercial establishments as follows:
Pao Da Terra
Newark
Dec. 29, 2012
Newark
Jan. 20, 2013
Newark Community Pharmacy
Newark
Jan. 24, 2013
Linden Stationary
Linden
Feb. 1, 2013
Delta Gas Station
Newark
Feb. 1, 2013
Shoppers Express
Belleville
Feb. 2, 2013
Krauszers
Kearny
Feb. 10, 2013
Krauszers
Bloomfield
Feb. 13, 2013
Pat’s Deli
Newark
Feb. 19, 2013
Smashburger
Paramus
March 16, 2013
Krauszers
Bloomfield
March 29, 2013
MS&K Confectionery
Maplewood
April 1, 2013
Belleville News and Food
Belleville
April 17, 2013
South Wood Discount Liquor
Linden
April 17, 2013
Krauszers
West Orange
April 24, 2013
Newark Community Pharmacy
Newark
May 1, 2013
Subway Restaurant
Verona
May 20, 2013
Dawson and his conspirators robbed each of these establishments at gunpoint, stealing cash, cigarettes and other items. In 15 of the 17 robberies, Dawson and his conspirators used zip-ties or duct tape to restrain their victims.
In the MS&K robbery on April 1, 2013, Dawson threatened the clerk of the store with a .380 caliber semi-automatic handgun. When the clerk resisted, Dawson fired his gun at the clerk, ordered the clerk to lie down and then stole $9,000 from the cash register.
In the robbery of Krauszers in West Orange on April 24, 2013, Dawson and a conspirator tied up three individuals in the store with zip-ties before stealing approximately $600 and several cartons of cigarettes. Dawson injured a store employee by hitting the victim in the head with his firearm.
On Jan. 1, 2013, Dawson and others agreed to steal a Mitsubishi Gallant parked on Underwood Street in Newark. Before driving away with the car, Dawson and his conspirators brandished multiple firearms to subdue the driver, with one conspirator using his firearm to strike the driver in the head.
In addition to the prison term, Judge Walls sentenced Dawson to serve three years of supervised release and ordered him to pay $72,518 in restitution.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation. He also thanked the Belleville, Bloomfield, Kearny, Linden, Maplewood, Newark, Paramus, Verona and West Orange police departments, along with the New Jersey State Police and the Essex County Prosecutor’s Office, for their work on this case.
The government is represented by Assistant U.S. Attorneys Jamari Buxton and Rahul Agarwal of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Assistant Federal Public Defender Candace Hom Esq., Newark
Ephren Taylor, II, Pleads Guilty to Conspiracy to Commit FraudRead the Press Release
ATLANTA - Ephren Taylor, II, has pleaded guilty to conspiracy to commit mail and wire fraud by defrauding hundreds of victims of their retirement savings.
“Taylor’s guilty plea brings a measure of justice for the hundreds of his victims, including those hard-working Georgians who lost their life savings to his criminal scheme,” said United States Attorney Sally Quillian Yates.
“Mr. Taylor exploited numerous investors by perpetrating a scheme that was based entirely on lies,” stated Special Agent in Charge Veronica Hyman-Pillot, IRS Criminal Investigation. “Mr. Taylor’s guilty plea today is an opportunity for him to admit to the deception and face the consequences of his actions.”
“The United States Secret Service is aggressive in our investigative mission to arrest those who commit financial crimes. In this case, we were particularly resolved to bring to justice a criminal who chose to take advantage of unsuspecting members of the public in environments of reverence and trust,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
According to United States Attorney Yates, the charges and other information presented in court: From at least April 2009 through October 2010, Ephren Taylor, II, then CEO of City Capital Corporation, and his co-defendant Wendy Connor, the former COO of City Capital Corporation, participated in a conspiracy to defraud investors. In pleading guilty, Taylor acknowledged that he defrauded hundreds of investors of more than $7 million nationwide. In a separate hearing, co-defendant Wendy Connor also pleaded guilty to interstate transportation of money taken by fraud.
As part of the scheme, Taylor traveled around the country on a “Building Wealth Tour,” where he gave wealth management seminars to church congregations. During this tour, Taylor claimed to be a socially conscious investor and falsely claimed that 20% of profits were donated to charity. One of the churches on the “Building Wealth Tour” was the New Birth Missionary Baptist Church in Lithonia, Ga. While there, Taylor and Connor met potential investors to discuss possible investments. Over 80 individuals from Georgia lost more than $2 million because of Taylor’s scheme.
The investments pushed by Taylor included investing in promissory notes, where the funds invested would be used to support small businesses, such as laundries, juice bars, and gas stations. Taylor falsely represented the revenues and returns for these businesses knowing that they were not profitable.
Taylor also pushed an investment in sweepstakes machines. Sweepstakes machines are computers loaded with various games that allow players to win cash prizes. Taylor published offering materials that falsely claimed the average sweepstakes machine would generate 300% investor returns. He also stated that the sweepstakes machine investments were 100% risk free.
Taylor knew that the investments he was touting were not profitable and that investors were not receiving actual returns from their investments.The sentencing for Ephren Taylor, 32, of Overland Park, Kan., is scheduled for December 18, 2014, at 2:30 p.m. Wendy Connor, 45, of Raleigh, N.C., is scheduled to be sentenced on December 18, 2014, at 9:30 a.m.
This case is being investigated by the Internal Revenue Service Criminal Investigation and the United States Secret Service.
Assistant United States Attorney Christopher J. Huber is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
District Man Pleads Guilty to Charges in Shooting That Seriously Wounded 8-Year-Old GirlGunfire Followed Attempted Robbery in Middle of Afternoon at Southeast Washington Apartment BuildingRead the Press Release
WASHINGTON – Karie Brown, 20, of Washington, D.C., pled guilty today to charges stemming from a shooting this year at an apartment building in Southeast Washington that seriously wounded an eight-year-old girl, U.S. Attorney Ronald C. Machen Jr. announced.
Brown pled guilty in the Superior Court of the District of Columbia to charges of aggravated assault while armed; assault with intent to rob while armed, and unlawful possession of a firearm by a convicted felon. The plea, which is contingent upon the Court’s approval, calls for a sentence of 14 ½ to 21 ½ years in prison. The Honorable Rhonda Reid Winston scheduled sentencing for Dec. 18, 2014.
A co-defendant, Nathaniel Patten, 21, also of Washington, D.C., is awaiting trial. He has pled not guilty to charges.
According to the government’s evidence, Brown and Patten decided on the afternoon of Feb. 14, 2014 to rob an individual they believed sold marijuana. Brown and Patten were armed with a .22-caliber Ruger semi-automatic pistol, which Brown was carrying. The men headed to the 1200 block of Valley Avenue SE, an area they knew that the individual had frequented.
Brown and Patten pretended to be waiting to gain access to a locked apartment building on the block. The eight-year-old girl – who was going outside to play in the snow -- held the door open for them. Brown and Patten then followed the individual who they were targeting into the building as he went upstairs. They then attempted to rob him and gain access to an apartment that he was about to enter. The individual escaped and ran downstairs. Brown shot once at the individual while inside the building and then fired multiple shots at him outside.
The shots missed the individual, but hit the girl in the torso.
The bullet that hit the child caused severe bleeding, and she was rushed to an emergency room and placed in critical care. She required immediate surgery and could have died but for the timely intervention of medical assistance.
According to the government’s evidence, Brown and Patten fled together, and Brown discarded the firearm, which was found by the Metropolitan Police Department (MPD). The defendants were both found and arrested soon after the shooting in the 3500 block of Wheeler Road SE.
The firearms charge stemmed from the fact that Brown had previously been convicted of a charge of conspiracy to commit robbery, in an unrelated case.
In announcing the plea, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Theresa Nelson, Victim/Witness Advocate Jennifer Clark, and Victim/Witness Security Specialist Tanya Via. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Tejpal S. Chawla and Kendra Briggs, who investigated and prosecuted the case.
14-226Defendant Sentenced to Nearly Six Years in Prison for Leading Multi-year Tax Fraud SchemeRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of YOSSIMAR ALARCON-PATINO, 25, to 70 months in prison for directing a conspiracy to obtain tax refunds by filing false income tax returns. He was also ordered to pay more than $1.7 million in restitution to the Internal Revenue Service. ALARCON-PATINO pleaded guilty on August 23, 2013, to Conspiracy to Defraud the United States and Money Laundering Conspiracy. Three other defendants pleaded guilty to conspiracy to defraud the United States or related charges as a result of this investigation. MARIA TERESITA ALVAREZ-MATEOS pleaded guilty on September 25, 2013, to one count of Conspiracy to Defraud the United States; SETH MOGOLLON-FLORES pleaded guilty on December 5, 2013, to one count of Conspiracy to Defraud the United States; and YULIANA ALVAREZ-MATEOS pleaded guilty on January 2, 2014, to one count of Making a Materially False Statement to Federal Agents.
According to his guilty plea and documents filed in court, since at least 2010, ALARCON- PATINO engaged in a tax fraud scheme through which he obtained tax refunds by filing false income tax returns that reported false income and claimed fictitious dependents. The majority of the false returns filed by ALARCON-PATINO were for undocumented workers or fictitious individuals. The Internal Revenue Service (IRS) requires people without Social Security numbers to obtain an Individual Taxpayer Identification Number (ITIN) in order to file tax returns and W-2 forms. ALARCON-PATINO obtained fake identification documents that he used to obtain false ITINs. MOGOLLON-FLORES also provided legitimate W-2 wage information to ALARCON-PATINO, which ALARCON-PATINO would augment and file with the tax returns. ALARCON-PATINO paid MOGOLLON-FLORES $100 for each W-2 he provided.
According to his guilty plea and documents filed in court, ALARCON-PATINO also falsely reported dependents in order to claim child tax credits and thereby generate a higher refund payment. He had the refund checks mailed to his residence in Minneapolis, and the residences of other defendants in Minnesota, who cashed the checks for him in exchange for a percentage of each check cashed.
This case is the result of an investigation by the Internal Revenue Service-Criminal Investigation Division, Federal Bureau of Investigation, U.S. Postal Inspection Service, and U.S. Department of the Treasury – Office of the Inspector General.
Assistant U.S. Attorney William Otteson prosecuted this case.
Defendant Information: YOSSIMAR ALARCON-PATINO, 25
Minneapolis, Minn.
Convicted: • Conspiracy to Defraud the United States, 1 count
• Money Laundering Conspiracy, 1 count
Sentenced: • 70 months in prison
• Restitution ordered in the amount of $1.7 million
MARIA TERESITA ALVAREZ-MATEOS, 41
Bloomington, Minn.
Convicted: • Conspiracy to Defraud the United States, 1 count
Sentenced: • 24 months in prison
SETH MOGOLLON-FLORES, 29
Willmar, Minn.
Convicted: • Conspiracy to Defraud the United States, 1 count
Sentenced: • 18 months in prison
YULIANA ALVAREZ-MATEOS, 30
Minneapolis, Minn.
Convicted: • Making a Materially False Statement to Federal Agents, 1 count
Sentenced: • 2 years probation###
Copperas Cove Man Sentenced to 30 Years in Federal Prison for Production and Distribution of Child PornographyRead the Press Release
In Waco today, U.S. District Judge Walter S. Smith, Jr. sentenced 32-year-old Daniel Ethan Clark to 30 years in federal prison followed by ten years of supervised release on child pornography charges announced United States Attorney Robert Pitman and FBI Special Agent in Charge Christopher H. Combs.
On July 3, 2014, Clark pleaded guilty to one count of production of child pornography and one count of distribution of child pornography. According to court records, in April 2014, the defendant, seeking images of child pornography in return, sent an email which contained child pornography images to an undercover officer.
On April 1, 2014, FBI agents executed a search warrant at the defendant’s Copperas Cove residence and seized a cell phone belonging to the defendant. A subsequent forensics examination of the cell phone revealed the presence of approximately 7,000 images and videos depicting child pornography. By pleading guilty, Clark admitted to producing and distributing numerous images and videos of minor females, namely a 7-year-old and 13-year-old, engaged in sexually explicit conduct.
Clark’s wife, Michelle, is charged by federal indictment with one count of sexual exploitation of children for allegedly knowing about, and even participating in, her husband’s actions. Upon conviction, Michelle Clark faces between 15 and 30 years in federal prison. Michelle Clark remains in federal custody pending trial. She is currently set for jury selection on November 3, 2014.
This investigation was conducted by the Federal Bureau of Investigation. Assistant United States Attorney Greg Gloff is prosecuting this case on behalf of the Government.
Comal County Woman Sentenced for East Texas Tax ViolationsRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas - A 61-year-old Spring Branch, Texas woman has been sentenced to federal prison for income tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Shirley Jean Emert pleaded guilty on Feb. 6, 2014 to making and subscribing to a false tax return for the calendar year 2010 and was sentenced to 24 months in federal prison today by U.S. District Judge Richard Schell.
According to information presented in court, Emert embezzled funds from her employer, Applied Concepts, in the amounts of $53,859 in 2008; $126,202 in 2009; $172,965 in 2010; and $166,254 in 2011. Emert failed to report the income on the corresponding tax year returns. Emert’s willful act of falsely reporting income on her tax returns for the years 2008 through 2011 resulted in income tax due and owing in the amount of $159,907.
Emert was also ordered to pay restitution in the amount of $697,187.78 to Applied Concepts and the IRS.
This case was prosecuted by the Eastern District of Texas on behalf of the Northern District of Texas. This case was investigated by IRS Criminal Investigations and the U.S. Postal Inspection Service and prosecuted by Assistant U.S. Attorney M. Andrew Stover.
Cedar Rapids Man Sentenced to More Than Six Years in Federal Prison for Bank RobberyRead the Press Release
A man who robbed a downtown Cedar Rapids bank while he was on federal supervised release was sentenced today to more than six years in federal prison.
Jacob Allen Mack, 24, from Cedar Rapids, Iowa, received the prison term after a July 18, 2014, guilty plea to one count of bank robbery.
At the guilty plea, Mack admitted he robbed the downtown Cedar Rapids branch of Hills Bank and Trust on the morning of May 2, 2014. At the time of the bank robbery, Mack was on federal supervised release following a 2011 conviction in federal district court for unlawful possession of a firearm.
Mack was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Mack was sentenced to fifty-seven months’ imprisonment for bank robbery and was also sentenced to a consecutive twenty-four months’ imprisonment for violating the terms of his federal supervised release. A special assessment of $100 was imposed and he was ordered to make restitution to Hills Bank and Trust. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Mack is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Cedar Rapids Police Department.
Court file information is available at https://ecf.iand.uscourts.gov. The case file numbers are 14-CR-00060 and 10-CR-00120.
Cedar Rapids Man Sentenced to Five Years in Prison for Possessing FirearmsRead the Press Release
A man who illegally possessed firearms on two occasions was sentenced today to five years in federal prison. Timothy Rush, age 24, from Cedar Rapids, Iowa, received the prison term after a July 30, 2014 guilty plea to one count of being an unlawful user of controlled substances (marijuana) in possession of a firearm, and one count of being a felon in possession of a firearm.
In a plea agreement, Rush admitted that, on the night of March 25, 2011, officers found him walking with a juvenile male in an alley off First Avenue. The juvenile was found in possession of ten baggies of marijuana, and Rush was found with a loaded 9mm pistol in his waistband. Rush admitted stealing the weapon, and admitted regularly smoking marijuana. A urine test confirmed his drug use. On May 7, 2012, Rush was found, after a shooting on the southeast side of Cedar Rapids, in possession of a sawed-off shotgun. Rush was convicted in state court for possession of an offensive weapon, a felony offense. Then, on May 29, 2014, officers responded to reports of a man with a gun seen on the southeast side of Cedar Rapids. When officers encountered Rush, who fit the description, he fled, dropping a loaded .380 caliber pistol during the flight. Officers arrested Rush and recovered the weapon. Rush ultimately admitted stealing that weapon.
Rush was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Rush was sentenced to sixty months’ imprisonment. A special assessment of $200 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Rush is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney C.J. Williams and investigated by the FBI Safe Streets Task Force and the Cedar Rapids Police Department.
Court file information is available at ttps://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-67.
Boone County Man Admits to Falsifying Mine Safety DocumentsRead the Press Release
Charleston, W.Va. – A Boone County man who falsified mandatory mine safety reports, pleaded guilty today to a federal charge announced United States Attorney Booth Goodwin. Shawn Glenn Stover, 29, of Whitesville, West Virginia admitted to falsifying a Mine Safety and Health Administration (MSHA) document while working at a Boone County mine.
In April of 2013, Stover was hired to work at Newtown Mining Company’s Peerless Rachel mine located in Boone County. In May and June of 2013, Stover acted as a foreman at the mine, despite not being qualified to do so. Stover signed pre-shift and on-shift reports that indicated he had properly examined particular sections of the mine. Stover was not certified as a foreman when he completed the mine reports. Stover also falsified the reports by using multiple foreman’s numbers that did not belong to him.
Stover faces up to five years in prison and a $250,000 fine when he is sentenced on December 12, 2014 by United States District Judge John T. Copenhaver, Jr.
The investigation was conducted by MSHA. Assistant United States Attorney Blaire L. Malkin is in charge of the prosecution.
Bogalusa Man and Woman Sentenced for Drug ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RAYMOND BRIDGES, age 53, and MARY DOUGHTY, age 65, both residents of Bogalusa, were sentenced yesterday having previously pled guilty to conspiracy to distribute and conspiracy to possess with intent to distribute cocaine hydrochloride and cocaine base and misprision of a felony, respectively.
U.S. District Judge Jay C. Zainey sentenced BRIDGES to a 24-month term of imprisonment and 4 years of supervised release, while DOUGHTY was sentenced to a 24-month term of probation.
On February 6, 2014, BRIDGES and DOUGHTY were two of 15 defendants charged in an 8-count indictment. This investigation targeted a Drug Trafficking Organization that operated out of the Bogalusa area. The indictment was based on court-authorized wiretaps that recorded conversations between Steven Haynes, who has pleaded guilty in this case, and the defendants, concerning the distribution of powder cocaine that was later converted to crack and sold in Washington and Tangipahoa Parishes.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Michael E. McMahon is in charge of the prosecution.
Bergen County, N.J., Man Sentenced to 17 Months in Prison in $65 Million Stolen Identity Income Tax Refund Fraud SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced today to 17 months in prison for his role in one of the nation’s largest and longest running stolen identity refund fraud schemes ever identified, U.S. Attorney Paul J. Fishman announced today.
David Pinski, 75, of Fort Lee, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to conspiracy to defraud the United States and theft of government funds. Judge Cecchi imposed the sentence today in Newark federal court.
The scheme caused more than 8,000 fraudulent U.S. income tax returns to be filed, which sought more than $65 million in tax refunds, and which resulted in the losses to the United States of more than $12 million.
According to documents filed in this case and statements made in court: Stolen Identity Refund Fraud
Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that results in more than $2 billion in losses annually to the United States Treasury. SIRF schemes generally share a number of hallmarks: • SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico.
• SIRF perpetrators complete Individual Income Tax Return Form 1040s (Form 1040) using the fraudulently-obtained information, and falsifying wages earned, taxes withheld and other data. Perpetrators use data to make it appear that the “taxpayers” listed on the fraudulent 1040 forms are entitled to tax refunds – when in fact, the various tax withholdings indicated on the fraudulent 1040s have not been paid by the listed “taxpayers,” and no refunds are due.
• Perpetrators direct the U.S. Treasury Department to issue the refunds through checks generated by the fraudulent 1040 forms to locations they control or can access, in various ways.
• Certain SIRF perpetrators sell the tax refund checks at a discount to face value. In turn, the buyers then cash the checks, either themselves or using straw account holders, by cashing checks at banks or check cashing businesses, or by depositing checks into bank accounts. When cashing or depositing refund checks, SIRF perpetrators often present false or fraudulent identification documents in the names of the “taxpayers” to whom the checks are payable.
The Investigation
Federal law enforcement agencies created a multi-agency task force in New Jersey composed of investigators from the IRS and the U.S. Postal Inspection Service, along with the U.S. Secret Service, and with assistance from the Drug Enforcement Administration. The New Jersey Task Force, with assistance from U.S. Immigration and Customs Enforcement, Homeland Security Investigations, revealed that from at least 2007, dozens of individuals in the New Jersey and New York area engaged in a large-scale, long running SIRF scheme.
Pinski and others obtained personal identifiers, such as dates of birth and Social Security numbers, belonging to Puerto Rican citizens. Pinski and others used those identifiers to create fraudulent 1040 forms, which falsely reported wages purportedly earned by the “taxpayers” and taxes purportedly withheld, to create the appearance that the “taxpayers” were entitled to tax refunds.
The fraudulent 1040 forms were created and filed electronically. By tracing the specific IP addresses that submitted the electronically-filed 1040s, law enforcement officers learned that just a handful of IP addresses created many of the fraudulent 1040 forms, which, in turn, led to the issuance of tax refund checks that the conspirators obtained, sold, cashed, and spent.
Conspirators purchased mail routes, that is, lists of addresses covered by a single mail carrier. Conspirators applied for tax refunds, inserted addresses along the mail route as the purported home addresses of the “taxpayers,” and obtained the checks sent to the addresses. In other instances, the conspirators applied for checks using addresses otherwise controlled by, or accessible by, certain conspirators, and collected the checks after they were delivered to those addresses. Hundreds of refund checks were mailed to just a few different addresses in a few towns, including Nutley, Somerset and Newark in New Jersey and Shirley, N.Y. After receiving the checks, Pinski and others cashed the checks and divided the proceeds.
Members of the New Jersey Task Force identified certain “hot spots” of activity related to the scheme, where conspirators were directing millions of dollars of refunds just a few towns and cities. New Jersey Task Force members then interacted with U.S. Postal Service employees in these hot spots, and identified the characteristics of refund checks connected to the scheme. More than $22 million in fraudulently applied for refund checks were interdicted by law enforcement and never delivered.
In addition to the prison terms, Judge Cecchi sentenced Pinski to three years of supervised release and ordered him to pay restitution and forfeiture of $1,379,464.
U.S. Attorney Fishman praised special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; the U.S. Secret Service, under the direction of Special Agent In Charge James Mottola; and the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl Kotowski, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Lakshmi Srinivasan Herman, Zach Intrater, Mala Ahuja Harker, and Danielle Walsman of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense Counsel: Samuel DeLuca Esq., Jersey City, N.J.Bedford County Man Sentenced for Firearms ViolationRead the Press Release
Prosecution is part of Project Safe Neighborhoods Initiative
JOHNSTOWN, Pa. - A resident of Schellsburg, Pa., has been sentenced in federal court to 36 months in prison, concurrent with any state sentence, and three years supervised release on his conviction of possession of unregistered destructive devices, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Stephen Edward Weaver, 57.
According to information presented to the court, on June 5, 2011, Weaver was in possession of unregistered destructive devices, specifically two pipe bombs.
Assistant U.S. Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Pennsylvania State Police, Troop G Barracks, Bedford Barracks and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Weaver.
According to Mr. Hickton, this case was prosecuted as part of Project Safe Neighborhoods initiative, a collaborative effort by federal, state and local law enforcement, agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
Bail Bondsman Convicted of Stealing over $120,000 in Social Security Disability BenefitsRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that MACK CHARLES WELLS JR., age 48, of Zachary, Louisiana, plead guilty before Chief U.S. District Judge Brian A. Jackson to a Bill of Information charging him with theft from the United States Social Security Administration. He is scheduled to be sentenced in February 2015.
During today’s hearing, WELLS admitted to the facts giving rise to the charge. WELLS began receiving disability payments in 1997 after an on-the-job injury. As a recipient of disability payments, WELLS had the affirmative duty to report to the Social Security Administration if his medical condition improved or he resumed working and receiving income. Beginning in February 2007, WELLS began working as a bail bondsman. In June 2007, Wells became the registered agent and member of “All Day Bail Bonding , LLC” in Zachary, Louisiana. From February 2007 through December 2011, WELLS repeatedly failed to disclose and intentionally concealed that he was working and earning income as a bail bondsman. As a result, WELLS fraudulently received more than $120,000 in disability benefit payments.
U.S. Attorney Green stated: “Disability benefits are reserved for those who are unable to work due to a disability. Masquerading as a deserving participant through lies and deceit is outrageous and disrespectful to those who are truly in such an unfortunate situation. We will continue to aggressively pursue those seeking to defraud our nation’s safety net programs.”
This matter was investigated by the Office of the Inspector General for the U.S. Social Security Administration. This matter is being prosecuted by Assistant United States Attorney Lyman E. Thornton III.
Ashtabula Man Faces Firearms and Heroin Charges; Madison Woman Charged with Firearms ViolationsRead the Press Release
A federal grand jury returned a five-count indictment charging Jemel E. Thompson, 25, of Ashtabula, with firearms and drug violations and Maranda M. Rabenold, 31, of Madison, with firearms violations, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Count 1 of the indictment alleges that on or about August 8, 2014, Thompson was in possession of ammunition, after he had been previously convicted of arson in the Oakland County, Michigan, Circuit Court.
Count 2 of the indictment alleges that on or about June 16, 2014, Rabenold, aided and abetted by Thompson, made false statements to The Great Outdoors Store, North Kingsville, Ohio in connection with the purchase of a HiPoint, 9mm pistol.
Count 3 of the indictment alleges that on or about July 19, 2014, Rabenold, aided and abetted by Thompson, made false statements to LWS LJC, Inc., Jefferson, Ohio in connection with the purchase of a HiPoint JCP pistol.
Count 4 of the indictment alleges that on or about September 8, 2014, Thompson attempted to distribute less than 100 grams of heroin.
Count 5 of the indictment alleges that on or about September 8, 2014, Thompson used the United States mail in facilitating an attempt to distribute heroin.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Ashtabula Police Department. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Arizona Man Pleads Guilty to Methamphetamine Trafficking Charges in New MexicoRead the Press Release
ALBUQUERQUE – Charles Douglas Notbohm, Jr., 50, of Tucson, Ariz., pleaded guilty yesterday afternoon in federal court in Las Cruces, N.M., to methamphetamine trafficking charges.
Notbohm was arrested in Lordsburg, N.M., on Feb. 21, 2014, after officers executed a search warrant on the vehicle in which he were traveling and found more than 116 grams of methamphetamine. On May 21, 2014, Notbohm and a co-defendant, James Richard Reeves, 46, also of Tucson, were indicted and charged with conspiracy and possession of methamphetamine with intent to distribute. On July 16, 2014, Notbohm, Reeves and a third co-defendant, Armando Conrad Gonzales, 33, of Las Cruces, NM, were charged in a superseding indictment with conspiracy and possession of methamphetamine with intent to distribute. The superseding indictment also charged Gonzales with being a felon in possession of a firearm.
Today, Notbohm pled guilty to a felony information charging him with conspiracy and possession of methamphetamine with intent to distribute. In entering his guilty plea, Notbohm admitted that on Feb. 21, 2014, he and Reeves were driving from Tucson to Las Cruces for the purpose of delivering methamphetamine to a co-conspirator. He further admitted that as the two men were driving through Lordsburg, they were stopped by a police officer who found more than 116 grams of methamphetamine in their vehicle.
Notbohm has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, he faces a prison sentence of not more than twenty years in prison.
Reeves was arrested on May 22, 2014, and pled guilty to the two methamphetamine trafficking charges in in the superseding indictment without the benefit of a plea agreement on Sept. 18, 2014. He has been in custody since his arrest and remains detained pending his sentencing hearing, which has not yet been scheduled. At sentencing, Reeves faces a sentence of not less than five years and not more than 40 years in prison.
Gonzales was arrested on May 13, 2014, and remains in custody pending trial. He has entered a not guilty plea to the charges in the superseding indictment. Charges in the indictment are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt in a court of law.
This case was investigated by Deming office of Homeland Security Investigations and the Lordsburg Police Department, and is being prosecuted by Assistant U.S. Attorney Anna R. Wright of the U.S. Attorney’s Las Cruces Branch Office.
Alison Brown Sentenced to 6 ½ Years in Federal Prison for Manslaughter at Red Lake Indian ReservationRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of ALISON ANN BROWN, 26, a member of the Red Lake Band of Chippewa Indians, to 78 months in federal prison for stabbing to death Byron Lussier, Sr., also a member of the Red Lake Band, in the early morning hours of July 4, 2013 at Lussier’s home on the Red Lake Indian Reservation. BROWN was indicted on August 5, 2013, and pleaded guilty to voluntary manslaughter on February 28, 2014. The Honorable Judge Donovan Frank handed down the sentence, which is within the recommended federal sentencing guidelines range, today in U.S. District Court in St. Paul, Minn.
“We are committed to fighting against senseless violence in Indian Country,” said U.S. Attorney Luger. “This case should serve as a reminder that violence is preventable, and treatment is available for those who suffer from addiction, and who may act maliciously when under the influence. I hope that today’s sentence brings some measure of closure to the family of the victim in this case.”
According to the defendant’s guilty plea and documents filed in court, ALISON BROWN stabbed Byron Lussier, Sr., to death in the kitchen of his own home. On the evening of July 3, 2013, Lussier was at a party, from which he returned home with two friends early in the morning on July 4, 2013. BROWN, who was inebriated at the time, entered Lussier’s home. Despite Lussier’s demand that she leave, BROWN became angry, grabbed two kitchen knives and a BBQ grill fork, and stabbed Lussier in his face and torso. He died as a result of the wounds.
This case was the result of an investigation conducted by the Federal Bureau of Investigation and the Red Lake Police Department.
This case was prosecuted by Assistant U.S. Attorneys Clifford Wardlaw and Steven Schleicher.
Defendant Information: ALISON ANN BROWN, 26
Red Lake, MN
Convicted: • Voluntary Manslaughter, 1 count
Sentenced: • 78 months in prison
• 3 year term of supervised release###
Albuquerque Man Sentenced to Seventy-Two Months for Heroin Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Raymond Moya, 31, of Albuquerque, N.M., was sentenced today to ten years in federal prison followed by six years of supervised release for his heroin trafficking conviction. Moya also was ordered to forfeit $5199 in cash that was seized from him at the time of his arrest.
Moya was charged in Nov. 2011, on a criminal complaint charging him with possession of heroin with intent to distribute, and later was indicted on that same charge in Dec. 2011. According to court filings, Moya was arrested on outstanding state warrants by the Albuquerque Police Department on Nov. 4, 2011. During a search incident to arrest, the officers found that Moya was in possession of 48.77 grams of heroin and $5199 in cash.
On April 10, 2014, Moya entered a guilty plea to the indictment and admitted possessing approximately 50 grams of heroin on Nov. 4, 2011, in Bernalillo County, N.M.
Court records reveal that prior to Nov. 2011, Moya had been convicted of the following felony offenses: possession of a controlled substance, aggravated assault with a deadly weapon, and possession of a controlled substance with intent to distribute.
This case was investigated by the Albuquerque office of the DEA, the U.S. Marshals Service, and the Albuquerque Police Department with assistance from the 2nd Judicial District Attorney’s Office.
The case was prosecuted by Assistant U.S. Attorneys Sean J. Sullivan and Nicholas J. Ganjei as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Additional Cay Clubs Executive Charged in Connection with $300 Million Ponzi Scheme Involving Sales of Vacation Rental UnitsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Michael Stephens, Acting Inspector General, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), announce that Barry J. Graham, 59, of Ft. Myers, was charged by superseding information with conspiracy to commit bank fraud, in violation of Title 18 United States Code, Section 371, in connection with a $300 million Ponzi scheme involving the sale of vacation rental units to approximately 1,400 investors in the Florida Keys and elsewhere.
Cay Clubs Resorts and Marinas (Cay Clubs) operated from 2004 through 2008 from offices in the Florida Keys and Clearwater. Cay Clubs marketed vacation rental units for 17 locations in Florida, Las Vegas and the Caribbean, to investors throughout the United States. Cay Clubs would promise to develop dilapidated properties into luxury resorts, and would promise investors an upfront “leaseback” payment of 15 to 20% of the sales price of the unit at the time of closing. Once an investor agreed to purchase a unit, Cay Clubs would arrange for a real estate closing and lender financing, but would not disclose the leaseback payment and other financial inducements to the borrowers on paperwork submitted to lending institutions.
According to the superseding information, Graham was the Director of Sales for Cay Clubs from 2004 through late 2007. During this time, Graham conspired with others to fraudulently inflate the prices of Cay Clubs units through insider sales. Graham and other insiders purchased units from Cay Clubs without disclosing their affiliation with Cay Clubs. Thereafter, these insider sale prices were used on marketing materials to make it appear to investors that the Cay Clubs units were rapidly increasing in price. Furthermore, the information alleges, as Cay Clubs experienced financial difficulties, Graham conspired with others to fraudulently market the Cay Clubs investment to new investors by making false and misleading statements, including by concealing Cay Clubs’ failure to convert dilapidated properties into luxury resorts.
Previously, Fred Davis Clark, Jr., and Cristal R. Clark, a/k/a Cristal R. Coleman, were charged by superseding indictment on September 16, 2014, with conspiracy to commit bank fraud and substantive counts of bank fraud, in connection with the alleged Cay Clubs Ponzi scheme. The defendants were ordered detained pretrial and the matter is currently pending before U.S. District Judge Jose E. Martinez in Key West.
Mr. Ferrer commended the investigative efforts of IRS-CI, ICE-HSI and FHFA-OIG, and the assistance of the SEC Miami Regional Office in this matter. This matter is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.
An information is only an accusation and the defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
7 October 2014
Tri-Cities Man Sentenced to 180 Months for Drug and Firearm OffensesRead the Press Release
GREENEVILLE, Tenn. – David Anthony Mantey, 41, of Gray, Tenn., was sentenced on Oct. 6, 2014, by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 180 months in federal prison. Mantey was previously convicted of possession with intent to distribute crack cocaine and being a felon in possession of a firearm.
In November 2013, officers with the Johnson City Police Department observed a gold minivan driving in Johnson City, Tenn., and identified Mantey as the driver. Knowing his driver’s license had been previously revoked, they conducted a traffic stop. Mantey parked his vehicle in an alleyway, immediately exited, and attempted to flee. However, after verbal commands from the officers, he halted and returned to the car. The officers approached the vehicle, confirmed his identity, and then removed him from the vehicle for questioning. At that time, Mantey admitted to possessing a small amount of marijuana on his person. A search yielded approximately four grams of marijuana from his vest pocket, as well as $896 in various denominations. Mantey was arrested for traffic and drug violations and transported to the Washington County Detention Center. Upon arrival he was processed and searched more thoroughly, where he was found to be hiding approximately 23 grams of cocaine base (“crack”) in his underwear.
In March 2014 members of the First Judicial Drug Task Force, in cooperation with agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), arranged to purchase a firearm from Mantey using an individual working on behalf of law enforcement. After a series of calls to Mantey to coordinate the transaction, he agreed to sell a rifle and a pistol for $2,000. With law enforcement agents watching, the individual working on their behalf went to a residence in Gray, Tenn., which was the ultimately agreed upon transaction site. Mantey exited a nearby trailer upon the individual’s arrival and guided him to a parked minivan which they both entered. Mantey retrieved a black bag from the back seat of the minivan which contained a Bushmaster, Model Carbon 15, .223 caliber, semiautomatic rifle; and a Glock, model 36, .45 caliber, semiautomatic pistol. While discussing the functioning of the firearms, Mantey gave the individual a single round of Winchester, .223 caliber, ammunition. The individual gave Mantey the purchase money and both individuals departed. Subsequently, law enforcement met with the individual and recovered the firearms and ammunition.
This case was the product of cooperation between the Johnson City Police Department; First Judicial District Drug Task Force; and ATF. Assistant U.S. Attorney Nick Regalia represented the United States.
Three Sentenced in Painkiller Distribution RingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Three co-defendants of Dr. Edita Milan were sentenced Tuesday for their role in a conspiracy to distribute prescription pills through the doctor’s office, United States Attorney William J. Ihlenfeld, II, announced today.
Lois Crites, 50, of Fairmont served as the doctor’s office manager from August 2010 until the office was closed in June 2013 after the execution of numerous federal search warrants. Crites pled guilty in June 2014 to conspiracy to distribute Schedule II and III controlled substances. Crites was sentenced to 24 months in prison and three years of supervised release.
Lois Crites’ son, Daniel J. Quirk, 30, also of Fairmont, pled guilty in June 2014 to distributing hydrocodone. He was sentenced to 12 months incarceration with six months to be served in prison followed by six months of home detention and 2 years of supervised release.
A third co-defendant, Brandi Mayo, 30, of Weston pled guilty in June 2014 to June 2014 plea to using a communication facility to illegally obtain hydrocodone. Mayo was sentenced to one year probation with eight months to be served on home confinement with electronic monitoring.
The convictions were the result of a 2 ½ yearlong investigation led by the Greater Harrison County Drug Task Force, which began with citizen complaints of the prescription writing practice of Dr. Milan from her Bridgeport, West Virginia office. Crites admitted her involvement with distributing more than 400 oxycodone pills and 25,000 hydrocodone pills through the doctor’s office. Dr. Milan is scheduled for trial on November 5, 2014.
U.S. District Judge Irene M. Keeley presided.
Three Jefferson Davis County Men Convicted on Federal Drug and Gun ChargesRead the Press Release
Hattiesburg, Miss - On Monday, October 6, after a week-long trial, Kentorre D. Hall a/k/a Toto, 31, of Prentiss, Roger Randale Jones a/k/a Hitman, 27, of Prentiss, and Martel Torres Barnes a/k/a Marty Mar, 23, of Bassfield, were found guilty on four counts of an indictment charging them with conspiracy to possess with intent to distribute methamphetamine, marijuana and cocaine; maintaining a residence to manufacture, store or distribute controlled substances; conspiracy to possess and use firearms in furtherance of drug trafficking; and possession of firearms in furtherance of drug trafficking, announced U.S. Attorney Gregory K. Davis and Special Agent in Charge Phillip Durham of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Hall, a quadriplegic, was also found guilty of an additional count of possession with intent to distribute methamphetamine. The defendants will be sentenced on December 4, 2014 by U.S. District Judge Keith Starrett in Hattiesburg. The each face a maximum penalty of life in prison and $10 million fine.
The case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the District Attorney’s Office of the 15th Circuit Court District and the Mississippi Bureau of Narcotics. It was prosecuted by Assistant U.S. Attorney Annette Williams.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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