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Tuesday 19 August 2014
Rochester Man Charged with Conspiring to Produce Child PornographyRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Shahmell Robinson, 21, of Rochester, N.Y., was arrested and charged by criminal complaint with producing child pornography and conspiring with others to produce child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, a fine of $250,000 or both.
Assistant U.S. Attorney Marisa J. Miller, who is handling the case, stated that according to the complaint, the defendant raped a female child under the age of 16, while another individual filmed the incident. The conduct occurred at a residence in Greece on August 8, 2014. The videos came to the attention of law enforcement when another individual posted them on Facebook.com.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The criminal complaint is the culmination of an investigation on the part of members of the Federal Bureau of Investigation’s Cyber Task Force, along with Task Force officers from the Rochester Police Department, under the direction of Chief Michael Ciminelli and members of the Greece Police Department, under the direction of Chief Patrick Phelan.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Raleigh County Man Pleads Guilty to Possessing Child PornographyRead the Press Release
BECKLEY, W.Va. – A 32-year old Raleigh County man faces up to 10 years in prison after pleading guilty today to possession of child pornography, U.S. Attorney Booth Goodwin announced. David Alan Hunt, of Sophia, West Virginia entered a guilty plea before United States District Court Judge Irene C. Berger.
Hunt admitted that on March 23, 2012, he possessed pictures of prepubescent and pubescent minors engaged in sexual acts. The images were located on his personal computer and on a compact disc located in his residence. Hunt also admitted to using a file sharing program that allowed him to share the pornographic images over the Internet. U.S. Attorney Booth Goodwin said, “We are committed to the fight against criminals like David Alan Hunt who contribute to the exploitation and abuse of children. We will use every available tool to track them down and prosecute them to the fullest extent allowed by law.”
The court scheduled a sentencing hearing for Hunt on December 4, 2014 in Beckley, West Virginia.
The West Virginia Internet Crimes Against Children Task Force, Southern Regional Drug and Violent Crime Task Force, and Federal Bureau of Investigations conducted the investigation. Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution.
This case is being brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Prisoners in Faribault Correctional Facility Filed More Than $400,000 in Fraudulent Tax Returns from PrisonRead the Press Release
United States Attorney Luger announced an indictment unsealed on Thursday, August 14, 2014, after the arrest of two defendants charged in a conspiracy to file fraudulent tax returns while incarcerated in state prison. A federal grand jury on August 12, 2014, returned a 21-count indictment charging TONY TERRELL ROBINSON, 30, and TANKA JAMES TETZLAFF, 39, with conspiring to defraud the United States and filing and making false claims against the government.
According to the indictment, from October 2009 through approximately September 2010, ROBINSON and TETZLAFF, who were incarcerated by the state of Minnesota in the Faribault Correctional Facility, conspired to prepare and file false federal income tax returns and fraudulently claim tax refunds. As part of their scheme, the defendants recruited other state prisoners to file false tax returns using their names and social security numbers. The defendants and other co-conspirators filed the tax returns using false wage and federal income tax withholding information.
According to the charges, tax refunds were paid by check, deposited directly into bank accounts, or deposited onto debit cards. Co-conspirators who were not in prison, including CARMEN ALLEN, VANESSA WALBERG, and DEEANNA CRIST, received refund checks at addresses they controlled, which were then cashed using a Power of Attorney signed by the filing co-conspirators. Refunds also were deposited directly into bank accounts controlled by the co-conspirators. As a result of the conspiracy, over $400,000 of false claims were made to the Internal Revenue Service.
ALLEN pleaded guilty to a conspiracy charge in March 2014 and was sentenced on August 7, 2014. Both, WALBERG and CRIST pleaded guilty to a conspiracy charge in May 2014 and are awaiting sentencing.
Assistant U.S. Attorney Michael Cheever is handling the prosecution.
This case is the result of an investigation by the Internal Revenue Service-Criminal Investigation Division.
For more information about how to protect yourself from identity theft, visit http://www.stopfraud.gov/protect-identity.html.
The IRS-Criminal Investigations urges citizens to review the Taxpayer Guide to Identity Theft, which can be found at http://www.irs.gov.
Defendant Information:
TONY TERRELL ROBINSON
Bayport, MN
Charges:
• Conspiracy to Defraud the United States, 1 count
• False Claims against the United States, 10 counts
TANKA JAMES TETZLAFF
Duluth, MN
Charges:
• Conspiracy to Defraud the United States, 1 count
• False Claims against the United States, 10 countsThe charges contained in an indictment are mere allegations and defendants are presumed innocent unless and until proven guilty.
Prior Felon from Las Cruces Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Christopher Alex Ruiz, 26, of Las Cruces, N.M., pleaded guilty this morning to being a felon in possession of a firearm and ammunition. The guilty plea was entered without the benefit of a plea agreement.
Ruiz is being prosecuted 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.
Ruiz was charged in March 2014, in a criminal complaint alleging that he unlawfully possessed a firearm and ammunition on Jan. 6, 2014, in Doña Ana County, N.M. Ruiz subsequently was indicted on that same charge. In Jan. 2014, Ruiz was prohibited from possessing firearms and ammunition because he previously had been convicted of the following felony offenses: aggravated burglary, forgery, unlawful carrying of a deadly weapon on school premises, larceny and of burglary of a vehicle on two occasions.
Ruiz has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Ruiz faces a statutory maximum penalty of ten years in prison. If adjudged to be a career criminal, Ruiz faces a mandatory minimum penalty of 15 years in prison.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Fugitive Apprehension Unit of the New Mexico Corrections Department, the Las Cruces Police Department, the Doña Ana County Sheriff’s Office and the New Mexico State University Police Department with assistance from the 3rd Judicial District Attorney’s Office. Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Owner of Bankrupt Young Oil Company Sentenced to 33 Months for Securities Fraud, Mail Fraud, Failure to File Income Tax Returns, and Illegal Possession of A FirearmRead the Press Release
LOUISVILLE, Ky. – The owner of bankrupt Young Oil Company was sentenced to 33 months in prison today, by Senior U.S. District Judge Thomas B. Russell, for charges included in three separate indictments including failure to file an income tax return with the Internal Revenue Service, mail fraud in connection with the solicitation of investor funds for oil drilling partnerships, securities fraud, submitting false statements for the purchase of a firearm, and for the illegal possession of a firearm by a person addicted to controlled substances announced David J. Hale, United States Attorney for the Western District of Kentucky.
Anthony L. Young, 54, of Metcalfe County, Kentucky, fraudulently solicited investments through his company, Young Oil Corporation between November 2007 through December 2008. According to a March 8, 2014, plea agreement, Young falsely represented the cost to investors in three separate oil drilling partnerships. Investors believed the $750,000 solicited for each oil well represented the total drilling costs. However, Young admitted to using the majority of the money for other purposes including personal use. Also, during this same period, Young, by use of the United States mail, did defraud others, make untrue statements of material fact, and engage in acts, that operated as a fraud and deceit upon investors under programs under Young Oil Corporation with the purchase and sale of a security. Young did this by misrepresenting the total costs for each of the three Prospects and by misrepresenting his actual use of investor money.
Also, Young failed to file federal income tax returns as required by law for calendar years 2005 and 2006. During this time Young received taxable income of $496,000 in 2005, and his tax due was $133,943. In calendar year 2006, Young received taxable income of $1,167,000, and, was therefore legally required to file a federal income tax return. His tax due was $359,485 for 2006.
Young was also sentenced today, for causing another person to knowingly make a false statement and representation on an ATF Form 4473 in purchasing a .45 caliber pistol from a licensed firearms dealer and that he possessed the Hi-Point, Model JHP, .45 caliber pistol while being a person addicted to controlled substances, including cocaine and oxycodone.
This case was prosecuted by Assistant United States Attorney Bryan Calhoun and was investigated by the Kentucky Department of Financial Institutions, Division of Securities, the Internal Revenue Service Criminal Investigation Division, U.S. Postal Inspection Service, the United States Secret Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Orofino Man Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
COEUR D'ALENE - Matthew P. Carlson, 31, of Orofino, Idaho, pleaded guilty today to possession of sexually explicit images of minors, U.S. Attorney Wendy J. Olson announced. Carlson was indicted by a federal grand jury in Coeur d'Alene on April 15, 2014.
According to the plea agreement, Carlson ordered DVD’s containing sexually explicit images of minors and child erotica from a Canadian company. The DVD’s were sent to Carlson through the U.S. Mail. The defendant also admitted that he intentionally downloaded child pornography on the internet. Over 600 child pornography photographs were located on a computer and hard-drive seized from Carlson’s residence.
The charge is punishable by up to 10 years in prison, a maximum fine of $250,000.00, and lifetime supervised release.
Sentencing is set for November 12, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d'Alene.
“The U.S. Attorney's Office will aggressively work with our local, state, and federal partners to stop the sexual exploitation of children,” said Olson. “Those who continue to victimize children by possessing or distributing images of children being sexually abused will be targeted and prosecuted.”
The case was investigated through the collaborative effort of the U.S. Postal Inspection Service, Federal Bureau of Investigation, and Orofino Police Department. These agencies participate in the Idaho Internet Crimes Against Children (ICAC) Task Force, a statewide coalition of local, state and federal law enforcement and prosecution agencies, focused on apprehending and prosecuting individuals who use the Internet to criminally exploit children. For more information about the Idaho ICAC Task Force and a list of all the participating agencies, visit www.icacidaho.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
North Little Rock Woman Guilty of Wire FraudRead the Press Release
Pocketed over $900,000 in Payroll SchemeLittle Rock – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Regina Paff, 53, of North Little Rock, Arkansas, pled guilty to an Information charging her with one count of wire fraud in a hearing held before U.S. District Judge James M. Moody, Jr. The charges relate to a scheme to defraud her former employer, AGL Corporation.
Paff was employed by AGL Corporation in Jacksonville, Arkansas, and as part of her duties, she prepared their payroll. She devised a scheme to take money from the company by paying herself additional paychecks, issuing herself reimbursement checks to which she was not entitled, and paying herself commission checks. To do this, she created false payroll entries. Through her scheme, between October 2008 and September 2012, Paff received approximately $991,640.32 in money she was not entitled to and caused a total intended loss to the company of $1,166,157.55.
At the conclusion of her hearing, Paff was taken into federal custody. A sentencing hearing will be set by the court at a later date. Paff faces a maximum penalty of 20 years in prison and a fine of up to $250,000.00.
This investigation was conducted by Federal Bureau of Investigation. Assistant United States Attorney Jana Harris is representing the United States.
North Highlands Woman Pleads Guilty to Aggravated Identity Theft, Bank Fraud, and Possession of Stolen U.S. MailRead the Press Release
SACRAMENTO, Calif. — Elise Elizabeth Perez, 42, of North Highlands, pleaded guilty today to four counts of bank fraud, one count of aggravated identity theft, and two counts of possession of stolen mail, United States Attorney Benjamin B. Wagner announced.
According to court documents, Perez admitted to using stolen IDs and checks to buy merchandise and make deposits into her own account. On April 20 and April 21, Perez used the driver’s license and checks stolen from one victim to make purchases. On May 7 and May 8, she deposited two forged checks into her own bank account. On May 30, 2014, a search warrant was executed at Perez’s residence and law enforcement found many items of stolen property, U.S. mail, and personal financial identification information of others.
This case is the product of an investigation by the Sacramento Office of the United States Postal Inspection Service with assistance from the Sacramento County Sheriff's Office. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.San Francisco Division Inspector in Charge Rafael Nunez of the United States Postal Inspection Service stated: “We are working closely with the U.S. Attorney's Office and our partners in law enforcement to ensure the U.S. Mail system is not used to facilitate criminal activity.”
Perez is scheduled to be sentenced by United States District Judge Lawrence K. Karlton on November 4, 2014. She faces up to 30 years in prison for bank fraud, up to five years in prison for possession of stolen mail, and a consecutive mandatory minimum sentence of two years in prison for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
New Orleans Man, Giray Biyiklioglu, Sentenced to 16 Years in Prison for Wire Fraud, Aggravated Identity Theft, Tax, and Money Laundering ChargesRead the Press Release
United States Attorney Kenneth Allen Polite, Jr. and Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department's Tax Division announced that GIRAY BIYIKLIOGLU, a/k/a “Johnny Bryan,” age 31, a Turkish national and resident of New Orleans, was sentenced today by U.S. District Judge Jay C. Zainey to 192 months in prison for conducting a scheme to defraud PayPal, in which he used the names, addresses, and/or Social Security numbers of dozens of identity theft victims. On October 31, 3013, following a four-day jury trial, BIYIKLIOGLU was convicted of thirteen counts of wire fraud, six counts of aggravated identity theft, two counts of tax evasion, and nineteen counts of money laundering, related in part to his purchases of expensive motorcycles and his wiring of fraud proceeds to his native Turkey. The Court further ordered BIYIKLIOGLU to pay restitution of $324,551.89 and to forfeit fraud proceeds, including a Ducati motorcycle, a Kawasaki jet ski, and more than $85,919.77 in U.S. currency.
According to court documents and proceedings, BIYIKLIOGLU devised a scheme to defraud PayPal, Inc. using PayPal accounts he had fraudulently set up in the names of other persons. As proven at trial, the defendant wired funds from bank accounts in his name, through the fraudulent PayPal accounts, and then back to bank accounts in his name. The trial evidence further showed that the defendant then falsely claimed to the original banks that the wire transfers he had initiated to PayPal were unauthorized. These false claims caused the banks to debit PayPal and credit the defendant’s original bank accounts. According to the evidence adduced at trial, the defendant in fact maintained control over all funds throughout the scheme.
The aggravated identity theft charges stem from the BIYIKLIOGLU’s use of the personal information of six victims in furtherance of his wire fraud scheme. The criminal tax violations relate to BIYIKLIOGLU’s evasion of his 2010 and 2011 individual income taxes. The money laundering charges pertain to BIYIKLIOGLU’s concealment of the fraud proceeds, including by wiring funds to Turkish banks, as well as his purchases of the motorcycles and jet ski.
“Biyiklioglu stole the identities of innocent victims to finance his own lavish lifestyle,” stated U.S. Attorney Kenneth Allen Polite, Jr. “The sentencing imposed today ensures that he will be brought to justice for defrauding these individuals and several financial institutions as part of his scheme.”
“Mr. Biyiklioglu’s criminal conduct violated many laws, including tax evasion, identity theft, and money laundering,” stated Gabriel L. Grchan, Special Agent in Charge, IRS Criminal Investigation. “Let his sentence serve as a warning to others considering this type of criminal activity. Giray Biyiklioglu will not only have to serve time in federal prison, but will also be required to forfeit the fruits of his criminal enterprise.”
The case was investigated by Special Agents of the United States Secret Service and the Internal Revenue Service, Criminal Investigation. The case was prosecuted by Trial Attorney Hayden Brockett of the U.S. Department of Justice, Tax Division and Assistant United States Attorney Chandra Menon.
NGK Spark Plug Co. Ltd. Agrees to Plead Guilty to Price Fixing and Bid Rigging on Automobile Parts Installed in U.S. CarsRead the Press Release
NGK Spark Plug Co. Ltd., an automotive parts manufacturer based in Nagoya, Japan, has agreed to plead guilty and to pay a $52.1 million criminal fine for its role in a conspiracy to fix prices and rig bids for spark plugs, standard oxygen sensors, and air fuel ratio sensors installed in cars sold to automobile manufacturers in the United States and elsewhere, the Department of Justice announced today.
According to the one-count felony charge filed today in the U.S. District Court for the Eastern District of Michigan in Detroit, NGK Spark Plug engaged in a conspiracy to rig bids for, and to fix, stabilize and maintain the prices of, spark plugs, standard oxygen sensors and air fuel ratio sensors installed in cars sold to automobile manufacturers such as DaimlerChrysler AG, Honda Motor Co. Ltd. and Toyota Motor Corp., among others, in the United States and elsewhere. In addition to the criminal fine, NGK Spark Plug has agreed to cooperate in the department’s ongoing investigation. The plea agreement will be subject to court approval.
“Today’s guilty plea is just another example of the commitment of the Antitrust Division to preserving fair and legal competitive practices,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “We will continue to do whatever it takes to protect U.S. consumers and businesses.”
According to the charge, NGK Spark Plug and its co-conspirators carried out the conspiracy through meetings and conversations in which they discussed and agreed upon bids and price quotations on bids to be submitted to certain automobile manufacturers and to allocate the supply of the products to those manufacturers. NGK Spark Plug sold spark plugs, standard oxygen sensors, and air fuel ratio sensors at non-competitive prices to auto makers in the United States and elsewhere in furtherance of the agreement. NGK Spark Plug’s involvement in the conspiracy lasted from at least as early as January 2000 until on or about July 2011.
NGK Spark Plug manufactures and sells spark plugs, standard oxygen sensors and air fuel ratio sensors. A spark plug is an engine component for delivering high electric voltage from the ignition system to the combustion chamber of an internal combustion engine. Oxygen sensors are located in the exhaust system and measure the amount of oxygen in the exhaust. Air fuel ratio sensors are “wideband” oxygen sensors that enable more precise control of the air/fuel ratio injected into the engine.
The charge against NGK Spark Plug is the latest in the department’s on-going investigation into anticompetitive conduct in the automotive parts industry. These are the first charges filed relating to spark plugs, standard oxygen sensors and air fuel ratio sensors sold to automobile manufacturers.
Including NGK Spark Plug, 28 companies and 26 executives have pleaded guilty or agreed to plead guilty in the division’s ongoing investigation into price fixing and bid rigging in the auto parts industry and have agreed to pay a total of $2.4 billion in criminal fines.
NGK Spark Plug is charged with price fixing and bid rigging in violation of the Sherman Act, which carries a maximum penalty of a $100 million criminal fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charge was brought by the Antitrust Division’s Washington Criminal I Section and the FBI’s Detroit Field Office with the assistance of the FBI Headquarters’ International Corruption Unit. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit http://www.justice.gov/atr/contact/newcase.html or call the FBI’s Detroit Field Office at 313-965-2323.
Mt. Oliver Grocer Gets Probation with Home Detention for Defrauding Food Stamp ProgramRead the Press Release
PITTSBURGH - A grocery store owner has been sentenced in federal court to three years probation and six months home detention on his convictions of wire fraud and food stamp fraud, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on Emile Bizimungu, 32, of Pittsburgh.
According to information presented to the court, Bizimungu was the owner of Dollar Grocery, a retail food store formerly located on Brownsville Road in Mt. Oliver Borough. Defendant's retail store participated in the United States Department of Agriculture's Supplemental Nutrition Assistance Program, commonly known as the Food Stamp Program. Food stamp recipients could purchase eligible food items using food stamp benefit cards at the defendant's retail store. The defendant was aware that program rules strictly prohibited the exchange of food stamp benefits for cash and/or ineligible items. Despite this knowledge, on multiple occasions, Bizimungu exchanged food stamp benefits for cash on a discounted basis, usually giving the customers only 50 cents on the dollar for their food stamp benefits. The defendant also permitted food stamp customers to purchase ineligible items with food stamp benefits and accepted food stamp benefits as payment on credit accounts and loans.
Judge Diamond also ordered Bizimungu to pay $24,000 in restitution to the USDA.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Office of the Inspector General for the United States Department of Agriculture and the Department of Homeland Security, Homeland Security Investigations for the investigation leading to the successful prosecution of Bizimungu.
Meridian Woman Pleads Guilty to Bank RobberyRead the Press Release
COEUR D'ALENE - Jennifer Lillian Balfe, 19, of Meridian, Idaho, pleaded guilty on August 19, 2014, to bank robbery, U.S. Attorney Wendy J. Olson announced. Balfe was indicted by a federal grand jury in Coeur d'Alene on May 20, 2014.
According to the plea agreement, Balfe admitted that on May 16, 2014, she drove the get- away vehicle during a robbery of the U.S. Bank in Cottonwood, Idaho.
The charge is punishable by up to 20 years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for sentencing November 12, 2014, before U.S. District Judge Lodge at the federal courthouse in Coeur d'Alene.
The case was investigated by the Cottonwood Police Department, Lewiston Police Department, Idaho County Sheriff’s Office, Nez Perce County Sheriff’s Office, and the Federal Bureau of Investigation (FBI).
Livermore, Kentucky, Felon Sentenced to 12 Months in Prison for Distribution of Anabolic Steroids and Possession of A FirearmRead the Press Release
OWENSBORO, Ky. – A convicted felon, who resided in Livermore, Kentucky, was sentenced today in U.S. District Court, by Chief Judge Joseph H. McKinley Jr., to 12 months in prison, followed by a three year period of supervised release, for possession with the intent to distribute anabolic steroids and for the illegal possession of a firearm by a convicted felon, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Wayne B. Williams pleaded guilty to the four count federal indictment on May 14, 2014. According to the plea agreement, on March 29 and April 3, 2013, Williams delivered anabolic steroids to an Owensboro Police Department (OPD) confidential source. Thereafter, on April 24, 2013, Williams was arrested for the two deliveries and a search warrant was executed at his home. During the search of Williams home, Kentucky State Police and OPD found numerous viles of anabolic steroids and labels for the steroids. They also found a Highpoint .380 caliber semiautomatic firearm and six rounds of .380 ammunition in a magazine, and an additional .40 rounds of .380 ammunition. Williams was previously convicted of a federal felony on June 27, 2011 and is prohibited from possessing a firearm or ammunition.
If convicted at trial, Williams faced up to 25 years in prison, a fine of $1,000,000 and a minimum term of supervised release of atleast two years and up to any number of years, including life.
This case was prosecuted by Assistant United States Attorney Daniel Kinnicut and was investigated by the Owensboro Police Department, Kentucky State Police and the McLean County Sheriff’s Department.
Lincoln Parish Man Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
MONROE, La. –A Ruston man pleaded guilty to bringing methamphetamine into Louisiana for sale, U.S.Attorney Stephanie A. Finley announced today.
Gale Allen Schoonover, 54, of Ruston, La., entered a conditional guilty plea for one count of possession with intent to distribute methamphetamine before U.S. Magistrate Judge Karen L. Hayes. The plea will become final when accepted by U.S. District Court Judge Robert G. James. According to evidence presented at the guilty plea, Schoonover was arrested on March 14, 2014 after returning from Dallas, where he had obtained methamphetamine that he intended to sell in Lincoln Parish. Law enforcement agents received information that the defendant was transporting methamphetamine for sale and monitored his whereabouts until the arrest. Schoonover possessed a total of 105.62 grams of pure methamphetamine as well as 1.735 kilograms of marijuana.
Schoonover faces up to 20 years in prison, three years supervised release, and a $1 million fine. A sentencing date of December 11, 2014 was set.
The DEA and the Lincoln Parish Narcotics Enforcement Team conducted the investigation. Assistant U.S. Attorney Allison D. Bushnell is prosecuting the case.
Lansing Man Pleads Guilty in Federal Mortgage Fraud ProbeRead the Press Release
Richard Hollern Admits Participating in a Conspiracy to Commit Bank Fraud
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick Miles announced today that Richard Hollern, 39, of Grand Ledge, Michigan pled guilty to a conspiracy to commit bank fraud in connection with his ownership in CDC Investments. The guilty plea occurred before U.S. District Judge Robert Holmes Bell today.
Hollern faces up to five years in prison. Sentencing in the case is scheduled for December 1, 2014.
Hollern admitted that he conspired with others at CDC, a Lansing real estate and investment company, to defraud banks in connection with mortgage loans. The fraudulent scheme enabled the perpetrators to use bank funds to enrich themselves as a result of sham real estate transactions. The felony conspiracy charge alleges that Hollern and his coconspirators at CDC defrauded mortgage lenders on 30 separate occasions resulting in losses of $2,325,000.
Hollern’s prosecution is the result of an investigation by the Mortgage Fraud Task Force, comprised of federal investigators including the FBI, U.S. Secret Service, the U. S. Postal Inspection Service and the HUD Office of Inspector General. The task force also includes the Lansing Police Department, investigators employed by the Michigan Attorney General’s Office and other state agencies. To date, eleven individuals have been convicted of mortgage fraud as part of this effort, resulting in prison sentences for all the defendants and restitution orders exceeding $14,000,000. Two additional individuals, Anthony Grundstrom and Brent Nolan have pled guilty and are awaiting sentencing.
U.S. Attorney Miles noted the cooperation among federal, state and local investigators participating in the Mortgage Fraud Task Force. He also emphasized that its work was not finished: "Mortgage fraud played a significant role in the financial crisis that brought much misery to Michigan citizens. My office will continue to vigorously pursue the perpetrators of these frauds so they will face the punishment they have earned."
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Laguna Pueblo Man Pleads Guilty to Assaulting Laguna Pueblo Woman and a Federally Commissioned Tribal Police OfficerRead the Press Release
ALBUQUERQUE – Preston Marmolejo, 32, a member and resident of Laguna Pueblo, pleaded guilty this morning to two counts of a four-count indictment under a plea agreement with the U.S. Attorney’s Office. Under the terms of the plea agreement, Marmolejo will be sentenced to a prison term within the range of 100 to 120 months followed by a term of supervised release to be determined by the court.
Marmolejo was arrested on Dec. 2, 2013, on a criminal complaint charging him with assault with a dangerous weapon and assault on a federal officer. He subsequently was charged in a four-count indictment with assault with a dangerous weapon, assault resulting in serious bodily injury, assaulting a federal officer, and using a firearm in furtherance of a crime of violence.
According to court filings, on Nov. 29, 2013, officers of the Pueblo of Laguna Police Department responded to a domestic violence call reporting that Marmolejo was assaulting his girlfriend, a Laguna Pueblo woman, with a knife. When the tribal officers arrived at Marmalejo’s residence, Marmolejo was holding a shotgun. Marmolejo disregarded the tribal officers’ commands that he put the weapon down and instead fired towards the officers and injured an officer who is federally commissioned by the BIA.
During today’s proceedings, Marmolejo entered guilty pleas to Counts 1 and 3 of the indictment charging him with assault with a dangerous weapon and assaulting a federal officer, respectively. In his plea agreement, Marmolejo admitted assaulting the female victim with a knife and the federal commissioned tribal police officer with a shotgun.
Marmolejo is in federal custody and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI, the Laguna Agency of the BIA’s Office of Justice Services, and the Pueblo of Laguna Tribal Police Department, and is being prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Internet Child Sexual Predator Sentenced to PrisonRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that John David Przenkop, age 47, of Columbus, Georgia, appeared in federal court on Tuesday, August 19, 2014 and was sentenced to a term of imprisonment of 120 months to be followed by lifetime supervision after his release from prison. Przenkop was sentenced by the Honorable Clay D. Land, U.S. District Court Judge, in Columbus, Georgia.Mr. Przenkop had admitted that on or about February 18/19, 2010, he enticed two minor females, ages fourteen (14) and fifteen (15), with promises of gifts, a shopping spree and dinner in exchange for sex. Mr. Przenkop made contact with the two minor victims via the social media site, MySpace. Mr. Przenkop transported the two minor victims from Phenix City, Alabama to his residence in Columbus, Georgia. While at his residence, Mr. Pzenkop engaged in sexual conduct with both minor victims which he also video-recorded. A search of Mr. Przenkop’s residence uncovered video recordings of the sexual encounters with the two minor females as well as other females, adults and juveniles.
“Cases involving the sexual exploitation of minors are priorities of my office and of the United States Department of Justice. There is no parole in the Federal system. After serving his sentence of ten years in the penitentiary, Mr. Przenkop will be supervised by federal authorities for the remainder of his life in order to insure that he does not prey upon our children again,” said United States Attorney Michael J. Moore.
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “This case makes it very clear that, while the various social media platforms may serve a legitimate purpose, they also provide a means for child predators such as Mr. Przenkop to access and do harm to unsuspecting and unsupervised children. The FBI is proud of the role it played in getting this dangerous individual off of our streets.”
The case was investigated by the Federal Bureau of Investigation and the Columbus Police Department. Assistant U.S. Attorney Michael T. Solis prosecuted this matter.
Questions concerning this case should be directed to Karen Moore, United States Attorney’s Office, at (478) 621-2606.Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Ostby in Billings on August 19, 2014, and entering pleas of Not Guilty were:
SCOTT JAMES NICHOLS, a 42-year-old resident of Lockwood, appeared on charges of sexual exploitation of children, attempted sexual exploitation of children, distribution of child pornography and possession of child pornography. If convicted of the most serious charges contained in the indictment, NICHOLS faces 30 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation and Billings Police Department. PACER Case Reference: 14-81
Appearing before U.S. Magistrate Judge Lynch in Missoula on August 19, 2014, and entering pleas of Not Guilty were:
ROBERT DOUGLAS KORTUM, a 59-year-old resident of Anaconda, appeared on charges of possession with intent to distribute prescription drugs. If convicted of the most serious charges contained in the indictment, KORTUM faces 20 years in prison, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Drug Enforcement Administration and Montana Division of Criminal Investigations. PACER Case Reference: 14-18
Appearing before U.S. Magistrate Judge Strong in Great Falls on August 19, 2014, and entering pleas of Not Guilty were:
JOHN GRIMSON LYON, a 60-year-old resident of Clifton, Virginia, appeared on charges of wire fraud; false claims and theft of government property. If convicted of the most serious charges contained in the indictment, LYON faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by U.S. Department of Interior Office of Inspector General. PACER Case Reference: 14-57
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Hoover Crips Street Gang Members and Associates Charged with Drug Conspiracy and Other Criminal OffensesRead the Press Release
TULSA, Okla. — In a 5th Superseding Indictment, unsealed today in the United States District Court, approximately 52 members and associates of the Hoover Crips Street Gang and the Donald Walter’s Drug Trafficking Organization were charged with 238 criminal offenses, including drug conspiracy, engaging in a continuing criminal enterprise, weapon offenses, retaliating against a witness, and conspiring to promote dog fighting.
The charges are the result of a three-year U.S. Attorney’s Office, Organized Crime Drug Enforcement Task Force investigation, led by the Tulsa Police Department’s Homicide and Special Investigation Divisions, and the Federal Bureau of Investigation in collaboration with the U.S. Drug Enforcement Administration; the Tulsa County District Attorney’s Office; the U.S. Marshal Service; the Oklahoma Attorney General’s Office; the Tulsa County Sheriff’s Office; the Broken Arrow Police Department; the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; the Oklahoma Highway Patrol; and the Norman Police Department.
The charges were announced today at a press conference by United States Attorney Danny C. Williams Sr., Northern District of Oklahoma; FBI Special Agent in Charge James E. Finch, Oklahoma City Division; Oklahoma Attorney General E. Scott Pruitt; Tulsa County District Attorney Tim Harris; Tulsa Police Chief Chuck Jordan; and DEA Special Agent in Charge Dan Salter.
According to the allegations in the 5th Superseding Indictment, from April 2011 to August 2014, the defendants conspired to purchase cocaine and marijuana from the Sinaloa Cartel and the Los Zeta Cartel. Both Cartels operated in Mexico, and sold drugs in the Tulsa area. During the conspiracy, money generated was used for dog fighting, gambling, travel, and vehicle purchases.
The 5th Superseding Indictment further alleges, the defendants operated “crack houses” in the Tulsa area for cooking, packaging, and selling of cocaine. These houses were also used as locations for money drops. The defendants would also use dozens of coded phrases when communicating and would “drop” phones in order to avoid law enforcement detection.
The defendants are also charged with purchasing, training, and breeding pit bulls for dog fighting.
In addition, Lorell Antonio Battle and Gaywone Dekeith Blades are charged with conspiring to retaliate against fellow gang member Anthony Campbell, who was a witness in a Federal trial and who provided information to law enforcement about street gang activities and other crimes. On April 3, 2013, Battle allegedly shot approximately 13 times at close range and killed Campbell.
If convicted, the defendants face forfeiture of vehicles, firearms, and nine (9) residences used to manufacture and distribute crack cocaine. The defendants also face entry of a $10 million dollar criminal forfeiture money judgment.
Assistant United States Attorneys Allen J. Litchfield, Robert T. Raley, Eric O. Johnston, and Catherine Depew are prosecuting the case on behalf of the United States.
An indictment is one method of charging defendants with alleged violations of Federal Law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
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U.S. v. Lorell Antonio Battle et al.pdf (1.31 MB)
Henderson, Kentucky, Man Pleads Guilty to Multiple Bank RobberiesRead the Press Release
OWENSBORO, Ky. – A Henderson County, Kentucky man pleaded guilty in U.S. District Court today, before Chief Judge Joseph H. McKinley Jr., to three charges of bank robbery, announced David. J. Hale, United States Attorney for the Western District of Kentucky.
Weston Neel Hurd, age 40, pleaded guilty to robbing two banks located in Owensboro, Kentucky and one bank located in Henderson, Kentucky,
In court, Hurd admitted that on August 6, 2012, in Henderson County, Kentucky, he robbed the Ohio Valley Financial Group, located at 400 Barret Boulevard, in Henderson, of approximately $2,651 by force, violence and intimidation. Neel admitted that on October 2, 2012, in Daviess County, Kentucky, he robbed the Kentucky Telco Federal Credit Union, located at 933 Tamarack Road, in Owensboro, of $2,878 by force, violence and intimidation. Neel further admitted that on December 28, 2012, in Daviess County, Kentucky, he robbed the First Security Federal Bank, located at 3560 Frederica Street, Owensboro, of $1,131 by force, violence and intimidation.
If convicted at trial, Hurd faced no more than 20 years for each count, for a combined total of 60 years in prison, a $250,000 fine for each count, and a three year period of supervised release. Hurd is being held in the Daviess County Detention Center. Sentencing is scheduled before Chief Judge McKinley, in Owensboro, on November 24, 2014.
This case is being prosecuted by Assistant United States Attorney Daniel P. Kinnicutt and is being investigate by the Federal Bureau of Investigation (FBI), Owensboro Police Department and Henderson Police Department.
Head of Frank Robino Companies Sentenced to 24 Months in Prison for Embezzling His Employees’ Retirement SavingsRead the Press Release
WILMINGTON, DE – Michael A. Stortini, the former managing member and part owner of the Frank Robino Companies (“FRC”) – a Delaware real estate development company – was sentenced yesterday by United States District Court Judge Richard G. Andrews to 24 months of imprisonment for embezzling $606,500 in retirement savings from his employees’ 401(k) plan, as well as failing to pay hundreds of thousands of dollars in payroll taxes to the Internal Revenue Service (“IRS”). In addition to the prison term, Judge Andrews ordered Stortini to pay restitution, with interest, to the 401(k) plan beneficiaries, as well as $638,468 to the IRS.
According to facts disclosed at Stortini’s plea and sentencing hearings, when FRC encountered difficult financial times in 2009, Stortini misappropriated funds from the employees’ retirement plan to pay operating expenses associated with the company, as well as fund real estate projects with which FRC and Stortini were involved. Around the same time, Stortini took approximately $900,000 for himself from bank accounts linked to FRC and its projects – $500,000 of which he spent at casinos – and failed to pay nearly half a million dollars in payroll taxes to the IRS.
Judge Andrews stated that he believed the two-year sentence was necessary to promote respect for the law and deter others from committing similar breaches of trust. Recalling an adage that he heard in law school, Judge Andrews stated in imposing sentence: “when you have a fiduciary relationship for money like that, your money is white, the money you control is black. And if you mix the two of them together, you’re going to be wearing black and white stripes.”
Acting United States Attorney David C. Weiss praised the collaborative work of the agencies involved –the IRS Criminal Investigation division, United States Department of Labor, and Employee Benefits Security Administration – and highlighted the investigation as an “example of our commitment to find individuals who criminally exploit positions of trust within our community and bring them to justice.”
"It is a serious crime when employers abuse their fiduciary responsibilities to their employees by lining their pockets with tax dollars intended to protect their employees’ futures," said Akeia Conner, Special Agent in Charge, IRS Criminal Investigation. "Mr. Stortini's actions not only caused negative ramifications to those financially connected to him, but also to the honest taxpayer who suffers from the stress to the tax system that Mr. Stortini’s actions caused. Tax crimes have erroneously been referred to as victimless, but that position could not be more wrong since we all end up paying when someone attempts to evade our tax system."
The case was prosecuted by Assistant United States Attorney Shawn A. Weede. For further information, please contact Public Information Officer Kim Reeves at (302) 573-6277, ext. 16287.
Grand Rapids Landlords to Pay $550,000 and Terminate Manager’s Responsibilities to Settle Sexual Harassment Lawsuit Filed by Justice DepartmentRead the Press Release
The Justice Department announced today that the owners and operators of the Alger Meadows Apartments in Grand Rapids, Michigan, have agreed to pay $550,000 in damages and civil penalties and to terminate property manager Dale VanderVennen’s role in managing the complex to settle a lawsuit alleging that VanderVennen sexually harassed female tenants in violation of the Fair Housing Act (FHA).
The department’s complaint, filed in September 2013, alleged that Dale VanderVennen, the manager of 16 apartment buildings known as Alger Meadow Apartments, sexually harassed female tenants at the complex in violation of the FHA. The lawsuit alleged that VanderVennen made unwelcome sexual comments and sexual advances to female tenants, touched himself in a sexual manner in front of female tenants, entered their homes without notice or permission, conditioned housing benefits on tenants engaging in sexual acts and took adverse action against tenants who refused his advances. The lawsuit also included the owners of the complex and alleged that they were liable for VanderVennen’s actions. The department began its investigation after the Fair Housing Center of Greater Grand Rapids brought complaints about VanderVennen’s conduct to the department’s attention.
The settlement, which was approved today by Judge Robert J. Jonker, requires the defendants to pay $510,000 to victims of VanderVennen’s sexual harassment and $40,000 to the United States The $510,000 will be used to pay damages to thirteen women who have already been identified and to any additional victims who are identified through the process established in the settlement agreement. Persons who believe they were subjected to sexual harassment by VanderVennen should contact the Justice Department at 1-800-896-7743, option 5, or e-mail the Justice Department at [email protected] .
“The magnitude of this settlement reflects the seriousness of the defendant’s conduct,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “No woman or her family should have to endure sexual harassment to keep the keys to their home.”
“The U.S. Department of Justice takes the American civil rights laws very seriously,” said U.S. Attorney Patrick A. Miles Jr. for the Western District of Michigan. “We fight to protect a variety of rights, including the right to housing without being discriminated against or sexually harassed. My office is pleased by this settlement.”
The consent decree also prohibits all of the defendants from engaging in discrimination, and it requires that the owners create non-discrimination policies for their properties and participate in fair housing training to prevent such conduct in the future. It also bars VanderVennen from personally participating in the management or operation of residential rental properties in the future and requires him to retain an independent manager to manage any rental properties he may later own. In addition to VanderVennen, the defendants include four closely held companies that own and operate Alger Meadows. Those companies are Jack and Linda Properties LLC, DDJ Rental Real Estate LLC, Calcutta Associates LLC and LLJ LLC, all of which are affiliated with Jack VanderVennen.
Fighting illegal housing discrimination is a top priority of the Department of Justice. The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt . Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777 or through its website at http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp .
Related Materials:
VanderVennen Consent Decree
Former Office Manager Charged with Embezzling $200,000Read the Press Release
An information was filed in U.S. District Court today charging the former office manager of a Cleveland law firm with embezzling approximately $200,000 from the firm, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Kelly R. Logan, age 42, of Seven Hills, Ohio, is charged in the one-count information. The information alleges that from February 2002 to November 2013, Logan forged approximately 111 checks drawn on accounts maintained by the law firm, and made them payable to her. In addition, Logan made false entries in the books of the law firm to conceal her embezzlement.
If convicted, the defendant’s sentence will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant United States Attorney Ann C. Rowland following an investigation by the Federal Bureau of Investigation.
Former Kinston Fire Captain and Reserve Deputy with the Greene County Sheriff’s Office Sentenced to 188 Months in Child Pornography CaseRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today, Chief United States District Judge James C. Dever, III, sentenced THOMAS ANDREW TAYLOR, 53, of Grifton, to 188 months imprisonment followed by 15 years of supervised release.
On February 3, 2014, TAYLOR was named in a Criminal Information charging him with one count of Receipt of Child Pornography in violation of Title 18, United States Code, Section 2252(a)(2). On March 26, 2014, TAYLOR pled guilty to that charge.
According to the investigation, in September of 2012, law enforcement in Philadelphia identified TAYLOR as an individual using a screen name to post pornographic images of children. On January 11, 2013, the National Center for Missing and Exploited Children (NCMEC) notified law enforcement that a subject later identified as TAYLOR, accessed Facebook and posted an image of child pornography on December 22, 2012. Facebook reported the image to NCMEC on December 25, 2012. A search warrant was executed at TAYLOR’S residence on May 31, 2013, and he agreed to a noncustodial interview. During that interview, TAYLOR admitted using his laptop computer, as well as his Yahoo! and Gmail accounts, to trade child pornography with others. On the way to the interview, TAYLOR attempted to destroy evidence by throwing a laptop into a creek off Highway 58 North in Kinston. However, the computer was recovered and was processed for evidence. A subsequent forensic examination revealed that TAYLOR’S child pornography collection included 334 images and 34 videos.
The criminal investigation of this case was conducted by the U.S. Immigration and Customs Enforcement’s Department of Homeland Security Investigations (HSI), Federal Bureau of Investigation, North Carolina Alcohol Law Enforcement, and the Lenoir County Sheriff’s Office. Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Former Hotel Broker Sentenced to 11 Years in Prison for $55 Million Fraud SchemesRead the Press Release
ALEXANDRIA, Va. – The president of an international hotel brokerage firm was sentenced today to 11 years in prison for conducting a wide-ranging set of multi-million dollar fraud schemes involving the sale of several hotel properties.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Timothy A. Gallagher, Acting Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the defendant was sentenced by U.S. District Judge Liam O’Grady.
Robert Timothy Koger, 48, formerly of Oakton, Virginia, was the president and sole owner of Molinaro-Koger, an international hotel real estate brokerage and advisory firm headquartered in Tysons Corner, Virginia. Koger pleaded guilty on Jan. 16, 2014 to wire fraud and conspiracy to commit wire fraud.
According to court records, the charges arose from three separate schemes executed by Koger, which resulted in losses exceeding $55 million. The first scheme involved Koger’s illegal flipping of hotels and promissory notes securing hotels in which Host Hotels and Resorts, L.P. (“Host”) and others were victims. In the second fraud, Koger executed a Ponzi scheme to steal and launder funds received from prospective buyers of hotels that were to be held in escrow while Koger negotiated with the hotel’s owners regarding the terms of the sale. In the third scheme, Koger defrauded a Tampa, Florida-based physician and businessman in connection with the latter’s ownership of a hotel in Pittsburgh, Pennsylvania.
In the first scheme, after Koger was hired by Host as a broker to sell two of its hotels, Koger located legitimate buyers for the properties at a fair market price. Rather than selling the hotels directly to the legitimate buyers, however, Koger recruited straw buyers controlled by him to whom he arranged the sale of the hotels by Host for considerably less than the legitimate buyers had agreed. The straw buyers then immediately turned around and sold the hotels to the legitimate buyers at the higher price previously arranged by Koger. Koger pocketed the difference between the legitimate purchase price and the straw buyer’s price, plus the commissions that Host paid Koger for arranging the “front end” sales with the straw buyers. In a similar manner, Koger defrauded Host by having a straw buyer purchase promissory notes securing European hotel properties in which Host was interested. The straw buyer then resold the notes to Host for considerably more than it paid for them. In total, Koger defrauded Host of over $22 million.In the second fraud scheme, Koger received deposits from prospective buyers of hotels that were to be held in escrow while Koger negotiated with the hotel’s owners regarding the terms of the sale. Contrary to his representations to the prospective buyers, Koger was not actually holding their funds in escrow. Instead, he used their funds to pay for personal and business expenses, including to repay prospective buyers whose funds previously were purportedly held in escrow by Koger.
Finally, Koger defrauded “K.P.,” a Tampa-based investor who owned the Wyndham Grand Hotel in Pittsburgh. A management firm that held a promissory note secured by the hotel decided to sell the note, and K.P. submitted an offer to buy the note for less than its face value. In what is described in court records as a “walk-away fraud,” Koger used an alias (“Rick Thompson”) to contact K.P. about his bid for the hotel’s promissory note. As part of this process, Koger (acting as “Rick Thompson”) falsely claimed to K.P. that “Thompson” had submitted a higher bid for the note than K.P.’s bid, but “Thompson” then offered to withdraw his bid if K.P. paid “Thompson” $2.5 million to walk away from his purportedly higher bid. After K.P. paid off “Thompson,” Koger used a different alias (“John Stern”) to contact K.P. again about the property. In what is described in court records as a “break-up fraud,” “Stern” falsely offered to buy the hotel from K.P., but then threatened to sue K.P. over an alleged breach of contract related to the sale, unless K.P. agreed to pay “Stern” $15 million.
This case was investigated by the FBI’s Washington Field Office. Assistant U.S. Attorneys Michael E. Rich and Chad I. Golder prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-18.
Former Boxing Champ Sentenced to 87 Months in Prison for East Bay Bank Robbery SpreeRead the Press Release
OAKLAND – James Quindale Page was sentenced today to 87 months in prison for a bank robbery spree in which he robbed banks throughout the East Bay, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
In pleading guilty, Page admitted to committing the following bank robberies:
Date
Bank
Location
Amount Stolen
3/6/2013
Chase Bank
1510 Palos Verdes Mall, Walnut Creek
$1,856
3/12/2013
Wells Fargo
4767 Hopyard Road, Pleasanton
$670
5/24/2013
U.S. Bank
2890 North Main Street, Walnut Creek
$1,339
5/25/2013
Wells Fargo
3365 Deer Valley Road, Antioch
$1,600
5/29/2013
Bank of America
2545 Main Street, Oakley
$1,507
6/3/2013
Chase
5747 Christie Avenue, Emeryville
$7,033
6/7/2013
U.S. Bank
3636 Lone Tree Way, Antioch
$1,280
6/8/2013
Wells Fargo
3525 Mount Diablo Boulevard, Lafayette
$5,450
In his robberies, Page entered the banks and passed the victim tellers notes announcing that he was robbing the bank and making a demand for money.
Page, 43, of Pittsburg, Calif., was arrested on June 10, 2013. He was charged by federal criminal complaint on June 11, 2013, and a grand jury returned an indictment charging him with six counts of bank robbery, in violation of 18 U.S.C. § 2113(a) on June 20, 2013. Page pleaded guilty on Feb. 7, 2014, admitting all six charged bank robberies and two additional bank robberies. Page, who was on federal supervised release at the time he committed these bank robberies, also admitted that the robberies violated the terms of his supervised release. Page has been in custody since his arrest.
The sentence was handed down by the Honorable Jeffrey S. White, United States District Court Judge in Oakland. Judge White sentenced Page to 63 months in prison for the new criminal violations and 24 months for committing the robberies while on supervised release, for a total sentence of 87 months. Judge White also sentenced Page to an additional 3-year period of supervised release.
Brian C. Lewis is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is the result of an investigation by the FBI, the Walnut Creek Police Department, the Pleasanton Police Department, the Antioch Police Department, the Oakley Police Department, the Emeryville Police Department, and the Lafayette Police Department.
(Page complaint )
(Page indictment )
Florida Man Pleads Guilty in Manhattan Federal Court to Hiding over $1 Million in Secret Bank Accounts in Switzerland and IsraelRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Shantelle P. Kitchen, the Acting Special Agent-in-Charge of the New York Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today that BERNARD KRAMER pled guilty to conspiring to conceal from the IRS over one million dollars he had hidden in Swiss and Israeli bank accounts, and willfully failing to disclose those accounts on his U.S. tax returns. KRAMER, who is cooperating with the Government, entered his guilty plea today before U.S. District Judge Alvin K. Hellerstein.
According to the criminal Information filed today in Manhattan federal court:
Between approximately 1987 and 2010, KRAMER maintained an undeclared bank account at a Swiss private bank headquartered in Zurich, Switzerland (the “Swiss Bank”). With the assistance of others at the Swiss Bank, KRAMER took steps to conceal the existence of, and his interest in, the undeclared account. KRAMER and certain individuals at the Swiss Bank used the coded phrase “Hot Lips” to refer to KRAMER’s undeclared account at the Swiss Bank. Periodically, KRAMER met with a representative of the Swiss Bank (“Swiss Bank Representative-1”) in the United States to discuss KRAMER’s undeclared account at the Swiss Bank and to review statements related to the account. With the assistance of the Swiss Bank, KRAMER repatriated funds to the United States from his undeclared account in a manner designed to ensure that U.S. authorities did not discover the account, including by requesting and receiving checks from the account in amounts just under $10,000 each.
In approximately 2008, it became publicly known that the Swiss bank UBS AG (“UBS”) was being investigated by United States authorities for helping U.S. taxpayers maintain undeclared accounts. Around that time, KRAMER chose to maintain his undeclared account at the Swiss Bank after being assured by Swiss Bank Representative-1 that KRAMER’s undeclared account would remain safe at the Swiss Bank despite the UBS investigation. In approximately March of 2010, however, with the assistance of Swiss Bank Representative-1 and others at the Swiss Bank and an Israeli bank headquartered in Ramat Gan, Israel (the “Israeli Bank”), KRAMER transferred the remaining assets in his undeclared account at the Swiss Bank to a new undeclared account at the Israeli Bank. KRAMER maintained the new undeclared account at the Israeli Bank from 2010 to 2012.
From approximately 1987 through 2012, KRAMER filed false tax returns with the IRS that failed to report his interest in his undeclared accounts at the Swiss Bank and the Israeli Bank, and the income generated in these undeclared accounts, which had a high value of at least $1.1 million.
KRAMER, 83, of Del Ray Beach, Florida, faces a maximum sentence of eight years in prison. As part of his plea, KRAMER has agreed to cooperate with the Government and to pay a civil penalty of $588,042, along with back taxes. He is scheduled to be sentenced by U.S. District Judge Alvin K. Hellerstein on February 6, 2015.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding efforts of IRS-CI in the investigation, which he noted is ongoing. Mr. Bharara also thanked U.S. Department of Justice’s Tax Division for their assistance in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sarah E. Paul and Jason H. Cowley are in charge of the prosecution.
U.S. v. Bernard Kramer Information
Federal Judge Sentences Cambria County Drug Ring Leader to 20 Years in PrisonRead the Press Release
JOHNSTOWN, Pa. - A resident of Carrolltown, Pa., has been sentenced in federal court to 20 years in prison and 10 years supervised release on his conviction of violating various federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on George M. Lowmaster, 44. In addition, Lowmaster was ordered to forfeit six pieces of real estate, three vehicles and $691,082 to the United States.
According to information presented to the court, from Sept. 30, 2010, to May 9, 2011, Lowmaster conspired to manufacture and distribute more than 1,000 marijuana plants. From March 2008, to May 9, 2011, he conspired to commit money laundering to hide the proceeds from the sale of his organization's drug distribution. Also, on July 23, 2008, and Aug. 21, 2010, he distributed less than 500 grams of cocaine on each occasion.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the joint task force, headed by the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, for the investigation leading to the successful prosecution of Lowmaster. Other agencies participating on the task force include the Internal Revenue Service-Criminal Investigation, Pennsylvania State Police, Pennsylvania Attorney General's Office, Cambria County District Attorney's Office, Carrolltown Police Department, Patton Police Department, Ebensburg Police Department, Portage Police Department and Paint Township Police Department.
Federal Inmate Charged with Possession of A Prison WeaponRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Margarito Morales-Oliva, age 35, formerly of Mexico, an inmate at the United States Penitentiary at Canaan, Pennsylvania, was charged on August 15, 2014 in a criminal Information with allegedly possessing a sharpened weapon commonly referred to as a “shank.”
The case was investigated by the FBI and the Special Investigation Section at USP-Canaan. Prosecution is assigned to Assistant United States Attorney John Gurganus.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is five years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Elkview Man Pleads Guilty to Distributing OxycodoneRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced that Shannon T. Murray, age 42, of Elkview, West Virginia pled guilty today in federal court in Charleston to aiding in the distribution of oxycodone. At the hearing, Murray admitted that in February of 2013, he transported oxycodone pills to a Kirkwood Drive residence where the pills were sold to a confidential informant working with law enforcement. Shortly after the drug deal, police executed a search warrant at the residence and recovered the money used by the confidential informant to buy the drugs from Murray, and also found additional oxycodone pills. Murray was in the residence when officers arrived and was arrested. Murray faces up to 20 years imprisonment and a $1,000,000.00 fine when he is sentenced on November 12, 2014.
The case was investigated by the Metropolitan Drug Enforcement Network Team (MDENT) and is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Delray Beach Residents Sentenced to Lengthy Prison Sentences in Multi-Million Dollar Bank Fraud Scheme Involving South Florida Investment PropertiesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, announce that Darryl Burke, 50, and Vicki Garland, 50, both of Delray Beach, were sentenced yesterday by U.S. District Judge James I. Cohn for their roles in a multi-million dollar bank fraud scheme spanning from at least 2002 through 2013. Burke was sentenced to 30 years in prison and Garland was sentenced to 15 years in prison.
Previously, Burke and Garland were convicted on February 5, 2014, by a federal jury in Ft. Lauderdale of bank fraud and wire fraud conspiracy, after a two and half week trial. Burke was also convicted of four substantive counts of bank fraud, and Garland was convicted of three substantive counts of bank fraud. Each defendant was also sentenced to serve five years of supervised release and ordered to pay restitution.
Evidence at trial established that Burke and Garland created fictitious companies, including Next Level Development, and used an abandoned coin laundry in Delray Beach, to create an empire of fraudulently obtained investment properties. The abandoned coin laundry had a mailbox that served as the official address for the defendants, various fake companies, and other conspirators and fictitious individuals. Trial evidence established that Burke and Garland used fake documents, including false wage and tax documents, and false claims of employment and income, to obtain bank loans for investment properties in low-income neighborhoods. Garland was held out as the “President” of Next Level, and would sell properties to Burke, using his alias, “David Middleton.” The defendants would then enroll the properties in the U.S. Department of Housing and Urban Development (HUD), Section 8 voucher program, and obtain proceeds from HUD and from low-income tenants. The defendants then used false claims of status for Burke and also for the fake name, “David Middleton,” as total and permanent disabled veterans to avoid property taxes on various fraudulently obtained properties. Burke and his fake alias were neither veterans nor disabled. Trial evidence established that the loans and rental proceeds totaled millions of dollars.
Defendants used the proceeds of the fraud to acquire a multi-residence waterfront compound in Delray Beach, as well as Bentley, Mercedes and Range Rover automobiles, luxury goods, courtside season tickets for the Miami Heat, and to obtain large amounts of cash. Evidence further showed that Burke was convicted in 1997 in the Southern District of Florida of federal bank fraud charges, in relation to conduct that spanned the late 1980s and early 1990s.
Previously, four defendants were convicted in connection with the scheme to defraud multiple lenders. Three title agents, Osvaldo Sanchez, 38, Rafael Amador, 32, both of Miami, Devon Fraser, 31, of Sunrise, and real estate investor Chiquita Alexis, 46, of Boca Raton, all pled guilty to the same conspiracy involving Burke and Garland.
Mr. Ferrer commended the investigative efforts of USSS and the Federal Deposit Insurance Corporation, Office of the Inspector General. This case is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Evelyn B. Sheehan.
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.
Deleon Springs Felon Convicted for Possessing Firearms and AmmunitionRead the Press Release
Orlando, Florida – United States District Judge Roy B. Dalton, Jr. today found Marco Maurice Heath (36, Deleon Spring) guilty of being a convicted felon who unlawfully possessed multiple firearms and ammunition. Heath faces a maximum penalty of life in federal prison due to his prior felony convictions for crimes of violence and serious drug offenses. His sentencing hearing is scheduled for November 3, 2014. He was indicted on May 7, 2014.
According to evidence presented at the trial, on November 8, 2013, an investigator with the Volusia County Sheriff’s Office (VCSO) was driving to work when he saw Heath riding a bicycle toward him with a shotgun and another long gun lying across the handlebars of the bicycle. The investigator radioed the VCSO dispatcher for back-up assistance while he turned around to look for Heath. A short time later, Heath was stopped, but no longer had any guns with him. Deputies continued to search the neighborhood for the guns. Ultimately deputies arrived at a nearby residence occupied by Heath’s girlfriend. She gave consent for the officers to search her home, and in a bedroom officers found a shotgun and a semi-automatic rifle underneath one bed, and a backpack containing three handguns and ammunition underneath another bed. Following his arrest, Heath admitted that he had possessed the firearms and ammunition the officers found that morning. Heath has eight prior felony convictions, including a conviction for armed robbery and multiple convictions for selling cocaine.
This case was investigated by Volusia County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Bruce S. Ambrose.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
It is also a part of ATF’s Frontline strategy to reduce violent crime and improve the quality of life in communities where law enforcement efforts are focused.
Del Rio Man Sentenced to 25 Years in Federal Prison in Child Porn CaseRead the Press Release
Law Enforcement testimony revealed the defendant possessed 1,000 videos and 100 images depicting child pornography
In Del Rio today, a former teacher at Calderon Elementary in the San Felipe Independent School District was sentenced to 25 years in federal prison for possession and distribution of child pornography announced United States Attorney Robert Pitman and Homeland Security Investigations (HSI) Special Agent in Charge Janice Ayala.
In addition to the prison term, United States District Judge Alia Moses ordered that 40-year-old Ruben A. Vazquez pay a $ 5,000 fine and be placed under supervised release for ten years after completing his prison term.
On August 22, 2013, a jury convicted Vazquez of one count of receipt of child pornography, one count of distribution of child pornography and one count of access with the intent to view child pornography. Evidence presented during trial revealed that Vazquez was using peer to peer file sharing programs to access, receive and distribute videos of child pornography. During trial, law enforcement officers testified that Vazquez admitted to them that he had over 1,000 images and over 100 videos of child pornography.
On June 21, 2012, HSI special agents executed a search warrant at the defendant’s residence and seized several computers and related equipment. According to court records, a forensics evaluation of the seized items revealed the presence of child pornography videos that depict minors engaging in sexually explicit conduct along with evidence of child pornography files that had previously resided on the computer.
“The prevention and investigation of the exploitation of minors is a priority for HSI,” said Special Agent in Charge Janice Ayala, HSI San Antonio. “These investigations are pursued by dedicated special agents who not only work with the United States Attorney's Office to bring predators to justice, but work tirelessly to prevent these crimes through extensive outreach and education.”
This case was investigated by HSI agents together with the investigators from the Beaumont Police Department. Assistant United States Attorneys Meghan McCalla, Ralph Paradiso and Matthew Watters prosecuted this case on behalf of the Government.
Defendant Sentenced for Prohibited Possession of FirearmRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces today that Marlique Jermaine Bridges of Mobile was sentenced following a May 2014 guilty plea to a charge of being a prohibited person in possession of a firearm. Bridges was previously convicted in Mobile County of Robbery, First Degree in 2012. By virtue of this conviction, Bridges is prohibited from possessing firearms or ammunition.
Possession of a firearm by a felon is a violation of Title 18, United States Code Section 922(g)(1). At the time of this offense, Bridges was on probation for his 2012 robbery conviction. Subsequently, Bridges’ state probation was revoked. Chief United States District Court Judge William H. Steele imposed a sentence of 48 months on the federal charge, to be served consecutively to Bridges’ twenty year robbery sentence on his probation revocation. The federal sentence of imprisonment will be followed by a three year term of supervised release.
This case was referred to the U.S. Attorney’s Office for federal prosecution by Sgt. Louis Screws of the Mobile Police Department, who also serves as a Task Force Officer with the Bureau of Alcohol, Tobacco, Firearms & Explosives.
Cupertino Businessman Sentenced to Prison and Ordered to Forfeit $100,000 for High-Technology Worker Visa FraudRead the Press Release
SAN JOSE – A Cupertino businessman was sentenced yesterday to prison and ordered to forfeit $100,000 arising out of his H-1B Visa Fraud scheme, announced U.S. Attorney Melinda Haag, Diplomatic Security Service Special Agent in Charge Dean K. Shear, Nick Annan, Acting Special Agent in Charge for U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in San Francisco, and Patrick Van Thull, Supervisor for the Fraud Detection and National Security Unit of U.S. Citizenship and Immigration Service’s in San Jose.
Balakrishnan Patwardhan, 54, of Cupertino, Calif., previously pleaded guilty on March 31, 2014, to 19 counts of Visa Fraud, in violation of Title 18, United States Code, Section 1546(a). As part of his plea agreement, Patwardhan pleaded guilty to all 19 counts of the indictment originally filed on March 27,2013. In pleading guilty, Patwardhan admitted that between July 2008 and October 2010 he knowingly submitted to U.S. Citizenship and Immigration Services false immigration forms and supporting documentation in I-129 applications seeking to obtain H-1B visas for 19 applicants. I-129 petitions relate to the H-1B high-technology worker visa program which requires, among other things, that an American employer certify it has high-technology jobs that cannot be filled by Americans. Patwardhan submitted 19 fraudulent I-129 petitions in which he falsely represented that the applicants had high technology job offers with Gilead Sciences in Foster City, Calif., an American employer, when in reality he knew that these applicants did not have such job offers. Patwardhan also admitted that he had included altered contracts and false Statements of Work that he had created in connection with the fraudulent I-129 applications.
United States District Court Judge Edward J. Davila yesterday afternoon sentenced Patwardhan to a 10 month sentence split to consist of 5 months prison and 5 months of home detention with electronic monitoring. Pursuant to the parties’ plea agreement, Judge Davila also ordered Patwardhan to pay a $100,000 forfeiture money judgment constituting proceeds he received as a result of his Visa Fraud. Judge Davila also sentenced the defendant to a two-year period of supervised released and ordered him to self-surrender by Jan. 15, 2015.
Assistant U.S. Attorney Joseph Fazioli is prosecuting the case with the aid of Laurie Worthen. The prosecution is the result of an investigation led by the U.S. Department of State Diplomatic Security Service’s representative to the Document and Benefit Fraud Task Force (DBFTF) overseen by ICE HSI. The DBFTF is a multi-agency task force that coordinates investigations into fraudulent immigration documents. U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security also assisted with the investigation.
(Patwardhan indictment )
Connecticut Insurance Salesman Indicted on Tax ChargesRead the Press Release
A Newington, Connecticut, man was indicted last Thursday by a grand jury in the District of Connecticut for one count of corruptly interfering with the due administration of the internal revenue laws, two counts of filing false tax returns and five counts of willfully failing to file tax returns, the Justice Department and Internal Revenue Service (IRS) announced.
According to the indictment filed against him, which was unsealed today, Terry DiMartino corruptly endeavored to obstruct and impede the due administration of the internal revenue laws by, among other things, mailing and causing to be mailed to the IRS false tax returns, including a return requesting a false $14 million refund; submitting worthless bonds on a timely basis that purported to satisfy his tax liabilities; and using nominees to hide and conceal assets to prevent the IRS from collecting on his tax liabilities. The indictment also alleges that DiMartino failed to file individual income tax returns on a timely basis for 2008 through 2012.
A trial date has not been scheduled. If convicted, DiMartino would face a statutory maximum sentence of 14 years in prison as well as be subject to fines.
This case was investigated by IRS-Criminal Investigation. It is being prosecuted by Trial Attorneys Jennifer Laraia, Erin Pulice and Jason Scheff of the Justice Department’s Tax Division.
An indictment merely alleges that a crime has been committed and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found on the division website .
Related Materials:
United States v. Terry J. DiMartino
IndictmentCoeur D'Alene Man Sentenced for Depredation of U.S. Forest PropertyRead the Press Release
Judge orders defendant to pay over $7,000 in restitution
COEUR D'ALENE - Stanley D. Votava, 60, of Coeur d’Alene, Idaho, was sentenced today to two years of probation and 50 hours of community service for depredation of U.S. Forest property, U.S. AttorneyWendy J. Olson announced. U.S. District Judge Candy W. Dale also ordered Votava to pay $7,033.35 in restitution, the cost of remediating the land. He pleaded guilty to the charge on May 7, 2014.
According to the plea agreement, Votava admitted he drove a skidder on U.S. Forest Service lands four times between November 2012, and January 2013, while working on private land that is adjacent to the U.S. Forest service land.
The case was investigated by U.S. Forest Service (USFS).
California Man Sentenced in Scheme to Defraud NissanRead the Press Release
NASHVILLE, Tenn. – August 19, 2014- Bruce Young, 50, of Compton, Calif., was sentenced on August 15, 2014, to 15 months in prison and ordered to pay $78,000 in restitution for his participation in a money laundering scheme that arose out of a scheme to defraud Nissan, announced David Rivera, United States Attorney for the Middle District of Tennessee.
The scheme originated from Kenneth Carter, a former Nissan employee who was employed at Nissan’s Franklin, Tennessee headquarters as an “Arbitration Specialist” from March 2007 through April 2008. As Arbitration Specialist, Carter’s duties included negotiating with attorneys who brought claims on behalf of Nissan owners, alleging that Nissan had violated “Lemon Laws” or the “Federal Warranty Act.”
Between March 2007 and April 2008, Carter, along with Bruce Young and other defendants, engaged in a scheme to defraud Nissan by filing false Lemon Law claims on behalf of individuals who owned Nissan vehicles.
The defendants provided Carter with information obtained from Nissan owners, such as the owner’s name, address, and vehicle identification number. Carter then used the information to file false and fraudulent Lemon Law claims with Nissan requesting settlement checks. Once Carter approved the false claims he would cause settlement checks to be issued. Young and others then directed the Nissan owners to deposit the checks into their bank accounts or to cash the checks and then “kick-back” a portion of the funds received from Nissan. A portion of the funds were then paid to Carter, and the remaining funds were kept by Bruce Young and others.
According to charging documents, between March 2007 and April 2008, Carter caused approximately 80 false claims to be paid by Nissan, totaling approximately $571,500.
All six persons charged in this case have pleaded guilty. Bruce Young is the fifth to be sentenced. The remaining defendant, Kenneth Carter, is scheduled to be sentenced on November 14, 2014.
The case was investigated by the IRS? Criminal Investigation and the Tennessee Bureau of Investigation. Assistant United States Attorney Kathryn Ward Booth represents the government.
Buffalo Man Sentenced for Clean Air Act Violation Related to the Kensington Towers ProjectRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul announced today that Rai Johnson, 35, of Buffalo, N.Y., who was convicted of violating the Clean Air Act Asbestos Work Practice Standards, was sentenced to time served, 160 days, and two years of supervised release by District Court Judge Richard J. Arcara.
Assistant U. S. Attorney Aaron J. Mango, who is handling the case, stated that the defendant was a supervisor at Johnson Contracting of WNY, Inc., an asbestos abatement company that was hired to conduct asbestos abatement activities at six buildings at the Kensington Towers Apartment Complex, located at 1827 Fillmore Avenue in Buffalo. In a pre-abatement asbestos survey, each building at Kensington Towers was found to contain 63,000 square feet of regulated asbestos containing material. The asbestos abatement project lasted from June 2009 to January 2010.
During the asbestos abatement of building A-1, Johnson, and employees working under his direction, violated the Clean Air Act asbestos work practice standards by: (i) failing to adequately wet Regulated Asbestos during stripping and removal operations; (ii) failing to ensure that Regulated Asbestos remained wetted until placed in leak-tight containers; and (iii) causing Regulated Asbestos to be dropped down holes cut through the floors in Building A-1.This is the fifth defendant to be sentenced as part of the Kensington Towers asbestos abatement project. In addition to Ernest Johnson, other defendants who have plead guilty include JMD project monitors Brian Scott, Evan Harnden and Chris Coseglia and current and former public officials responsible for certifying the project’s compliance with applicable laws and regulations, including Donald Grzebielucha, William Manuszewski, and Theodore Lehmann. The remaining defendants will be sentenced before U.S. District Court Judge Richard J. Arcara.
The conviction is the culmination of an investigation on the part of Special Agents of the U.S. Environmental Protection Agency - Criminal Investigation Division, under the direction of Special Agent-In-Charge, Vernesa Jones-Allen; Special Agents of the Federal Bureau of Investigation; Special Agents of the U.S. Department of Housing and Urban Development - Office of Inspector General, under the direction of Special Agent-In-Charge Christina D. Scaringi; and Investigators of the New York State Department of Environmental Conservation Police, BECI, under the direction of Captain Frank Lauricella. Additional assistance was provided by the New York State Department of Labor, Asbestos Control Bureau.Buffalo Man Sentenced for Bank RobberyRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Michael Bland, 18, of Buffalo, N.Y., who was convicted of bank robbery, was sentenced to 51 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that Bland robbed three M&T Banks located at 1300 Jefferson Avenue in Buffalo, 750 Main Street in Niagara Falls, and 1877 Main Street in Buffalo, between August 21, 2013 and September 4, 2013.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation, the Buffalo Police Department, of under the direction of Commissioner Daniel Derenda, and the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto.Bronx, N.Y., Man Charged in Violent Multi-State Crime Spree Capped by High-Speed ChaseRead the Press Release
NEWARK, N.J. – A Bronx, N.Y., man is scheduled to appear in federal court today to face charges stemming from a violent crime spree spanning three states, in which he attacked, kidnapped, and raped a woman, assaulted a National Park Service employee and set fire to a used car dealership office before crashing on the George Washington Bridge, U.S. Attorney Paul J. Fishman announced.
Luis Figueroa, 33, is charged in a six-count complaint with kidnapping, brandishing a firearm during a crime of violence, possession of a firearm by a convicted felon, aggravated sexual abuse, assaulting an employee of the United States, and arson. He is scheduled to make his initial court appearance before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court this afternoon.
According to the complaint:
On the morning of June 6, 2014, Figueroa allegedly entered a multi-family residence in Luzerne County, Pa., where a woman (Victim One) with whom he had a previous relationship and several other people lived in an apartment. He waited outside the apartment armed with a loaded shotgun.
When Victim One opened the door to leave shortly after 8:00 a.m., Figueroa struck her in the head with the shotgun. Figueroa allegedly stated, “I told you, bitch. I told you I was going to kill you.” He then entered the apartment and punched Victim One multiple times. Figueroa also struck Victim Two, a relative of Victim One, with the shotgun, then chased her and kicked her as she tried to escape, causing her to fall down a flight of stairs, and slammed her head against the front entrance. After a brief struggle with Victim One, which enabled Victim Two to escape, Figueroa collected the shotgun from the apartment and exited the building. Figueroa then forced Victim One into the back seat of a red SUV and drove away. Victim Two was eventually treated for her injuries.
Figueroa headed east in the red SUV on Interstate 80 towards New Jersey. At one point, Figueroa told Victim One that he was going to kill her, then kill himself. As he was driving, Figueroa allegedly forced Victim One to perform a sex act. After crossing the New Jersey state border, Figueroa exited the freeway and pulled the red SUV into a rest stop area at the Kittatinny Point Visitor’s Center.
After parking the red SUV, Figueroa allegedly climbed into the back seat with Victim One and forcibly raped her. Figueroa removed the ammunition from the shotgun and disposed of the rounds in a nearby wooded area. He then returned to the vehicle and retrieved the shotgun, then left again to dispose of the firearm. Once Figueroa left the red SUV with the shotgun, Victim One got in the driver’s seat of the vehicle and sped away. Victim One was subsequently transported to a hospital to receive treatment for her injuries.
After Victim One escaped in the red SUV, Figueroa allegedly approached U.S. National Park Service employee (Victim Three) near the parking lot area, attacked him and forced him into a nearby storage room, where he rammed Victim Three’s head into a door. Figueroa told Victim Three, “If you want to live, you better give me your car keys right now.” Victim Three handed over the keys and Figueroa drove away in Victim Three’s red minivan, heading east on Interstate 80. Victim Three was also treated for injuries.
Figueroa eventually stopped in Paterson, New Jersey, where he left Victim Three’s red minivan at a used car dealership he sub-let on West Broadway Street. Several days prior to June 6, 2014, Figueroa was given an eviction notice to vacate the property. At 11:30 a.m., Figueroa went to a separate used car dealership (the Victim Car Dealership) in Paterson, which was several blocks away. The Victim Car Dealership is operated by the individual who leased the West Broadway Street property to Figueroa. Figueroa asked an employee to borrow a portable gas container, then drove to a nearby gas station in a white SUV and filled the container with gasoline. Figueroa returned to the Victim Car Dealership and doused a small office area near the corner of the property with gasoline. The employee managed to get the gas container out of Figueroa’s hands, but Figueroa lit a match and ignited the structure. He then fled the scene in the white SUV.
Figueroa’s alleged crime spree ended when law enforcement officers traveling in marked police vehicles spotted him on the George Washington Bridge in the white SUV. Figueroa ignored the officers’ commands to stop and led them on a high-speed chase across the bridge, during which he struck two police vehicles before crashing into a wall. Figueroa then attempted to flee from the officers on foot but they tackled him and took him into custody.
Law enforcement subsequently searched the Kittatinny Point Visitor’s Center area and recovered the shotgun Figueroa used in the attacks.
The charge of kidnapping carries a maximum penalty of life in prison and a $250,000 fine. The charge of brandishing a firearm during a crime of violence carries a mandatory minimum term of seven years in prison and a maximum penalty of life in prison and a $250,000 fine. The charge of possession of a firearm by a convicted felon carries a maximum penalty of ten years in prison and a $250,000 fine. The charge of aggravated sexual abuse carries a maximum penalty of life in prison and a $250,000 fine. The charge of assaulting an employee of the United States carries a maximum penalty of twenty years in prison and a $250,000 fine. The charge of arson carries a mandatory minimum term of five years in prison and a maximum penalty of twenty in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge George Belsky in Woodland Park, for the investigation leading to the charges. He also thanked the Hazelton City Police Department (Pennsylvania), the Luzerne County District Attorney’s Office (Pennsylvania), the N.J. State Police, the Warren County Prosecutor’s Office, the Passaic County Prosecutor’s Office, the Bergen County Prosecutor’s Office, the Port Authority of New York and New Jersey Police Department, and the Manhattan District Attorney’s Office.
The government is represented by Assistant U.S. Attorney Jamari Buxton of the U.S. Attorney’s Office’s General Crimes Unit in Newark.14-295
Figueroa, Luis Complaint
Bronx, N.Y., Man Charged in Violent Multi-State Crime Spree Capped by High-Speed ChaseRead the Press Release
NEWARK, N.J. – A Bronx, N.Y., man is scheduled to appear in federal court today to face charges stemming from a violent crime spree spanning three states, in which he attacked, kidnapped, and raped a woman, assaulted a National Park Service employee and set fire to a used car dealership office before crashing on the George Washington Bridge, U.S. Attorney Paul J. Fishman announced.
Luis Figueroa, 33, is charged in a six-count complaint with kidnapping, brandishing a firearm during a crime of violence, possession of a firearm by a convicted felon, aggravated sexual abuse, assaulting an employee of the United States, and arson. He is scheduled to make his initial court appearance before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court this afternoon.
According to the complaint:
On the morning of June 6, 2014, Figueroa allegedly entered a multi-family residence in Luzerne County, Pa., where a woman (Victim One) with whom he had a previous relationship and several other people lived in an apartment. He waited outside the apartment armed with a loaded shotgun.
When Victim One opened the door to leave shortly after 8:00 a.m., Figueroa struck her in the head with the shotgun. Figueroa allegedly stated, “I told you, bitch. I told you I was going to kill you.” He then entered the apartment and punched Victim One multiple times. Figueroa also struck Victim Two, a relative of Victim One, with the shotgun, then chased her and kicked her as she tried to escape, causing her to fall down a flight of stairs, and slammed her head against the front entrance. After a brief struggle with Victim One, which enabled Victim Two to escape, Figueroa collected the shotgun from the apartment and exited the building. Figueroa then forced Victim One into the back seat of a red SUV and drove away. Victim Two was eventually treated for her injuries.
Figueroa headed east in the red SUV on Interstate 80 towards New Jersey. At one point, Figueroa told Victim One that he was going to kill her, then kill himself. As he was driving, Figueroa allegedly forced Victim One to perform a sex act. After crossing the New Jersey state border, Figueroa exited the freeway and pulled the red SUV into a rest stop area at the Kittatinny Point Visitor’s Center.
After parking the red SUV, Figueroa allegedly climbed into the back seat with Victim One and forcibly raped her. Figueroa removed the ammunition from the shotgun and disposed of the rounds in a nearby wooded area. He then returned to the vehicle and retrieved the shotgun, then left again to dispose of the firearm. Once Figueroa left the red SUV with the shotgun, Victim One got in the driver’s seat of the vehicle and sped away. Victim One was subsequently transported to a hospital to receive treatment for her injuries.
After Victim One escaped in the red SUV, Figueroa allegedly approached U.S. National Park Service employee (Victim Three) near the parking lot area, attacked him and forced him into a nearby storage room, where he rammed Victim Three’s head into a door. Figueroa told Victim Three, “If you want to live, you better give me your car keys right now.” Victim Three handed over the keys and Figueroa drove away in Victim Three’s red minivan, heading east on Interstate 80. Victim Three was also treated for injuries.
Figueroa eventually stopped in Paterson, New Jersey, where he left Victim Three’s red minivan at a used car dealership he sub-let on West Broadway Street. Several days prior to June 6, 2014, Figueroa was given an eviction notice to vacate the property. At 11:30 a.m., Figueroa went to a separate used car dealership (the Victim Car Dealership) in Paterson, which was several blocks away. The Victim Car Dealership is operated by the individual who leased the West Broadway Street property to Figueroa. Figueroa asked an employee to borrow a portable gas container, then drove to a nearby gas station in a white SUV and filled the container with gasoline. Figueroa returned to the Victim Car Dealership and doused a small office area near the corner of the property with gasoline. The employee managed to get the gas container out of Figueroa’s hands, but Figueroa lit a match and ignited the structure. He then fled the scene in the white SUV.
Figueroa’s alleged crime spree ended when law enforcement officers traveling in marked police vehicles spotted him on the George Washington Bridge in the white SUV. Figueroa ignored the officers’ commands to stop and led them on a high-speed chase across the bridge, during which he struck two police vehicles before crashing into a wall. Figueroa then attempted to flee from the officers on foot but they tackled him and took him into custody.
Law enforcement subsequently searched the Kittatinny Point Visitor’s Center area and recovered the shotgun Figueroa used in the attacks.
The charge of kidnapping carries a maximum penalty of life in prison and a $250,000 fine. The charge of brandishing a firearm during a crime of violence carries a mandatory minimum term of seven years in prison and a maximum penalty of life in prison and a $250,000 fine. The charge of possession of a firearm by a convicted felon carries a maximum penalty of ten years in prison and a $250,000 fine. The charge of aggravated sexual abuse carries a maximum penalty of life in prison and a $250,000 fine. The charge of assaulting an employee of the United States carries a maximum penalty of twenty years in prison and a $250,000 fine. The charge of arson carries a mandatory minimum term of five years in prison and a maximum penalty of twenty in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge George Belsky in Woodland Park, for the investigation leading to the charges. He also thanked the Hazelton City Police Department (Pennsylvania), the Luzerne County District Attorney’s Office (Pennsylvania), the N.J. State Police, the Warren County Prosecutor’s Office, the Passaic County Prosecutor’s Office, the Bergen County Prosecutor’s Office, the Port Authority of New York and New Jersey Police Department, and the Manhattan District Attorney’s Office.
The government is represented by Assistant U.S. Attorney Jamari Buxton of the U.S. Attorney’s Office’s General Crimes Unit in Newark.14-295
Figueroa, Luis Complaint
Bridgeport Man Pleads Guilty to Possessing Firearm IllegallyRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that GIOVANNI CANDELARIO, 21, of Bridgeport, pleaded guilty to one count of possession of a firearm by a convicted felon.
As alleged in court documents and statements made in court, at approximately 10 p.m. on February 1, 2014, a vehicle in which CANDELARIO was a passenger engaged in a chase with Bridgeport Police. The vehicle eventually stopped on Ogden Street in Bridgeport and CANDELARIO fled on foot. CANDELARIO was apprehended after he was found hiding in a trash can behind an apartment building on Hallet Street. Officers subsequently traced the route of CANDELARIO’s flight and located a Smith and Wesson MP .40 caliber pistol on the driveway of an Ogden Street residence. The firearm had been previously reported stolen. In March 2012, CANDELARIO was convicted in state court of possession with intent to distribute narcotics. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
This prosecution stems from Project Longevity, a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to violence. A critical component of the Project Longevity strategy is the “call-in,” a face-to-face meeting where Project Longevity partners engage group members and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. CANDELARIO attended a call-in on October 30, 2013, in Bridgeport, and was offered services. Subsequently, CANDELARIO and his group committed acts of violence, which in turn drew the full and focused attention of local, state and federal law enforcement.
CANDELARIO’s sentencing has been scheduled for November 10, 2014 before U.S. Alvin W. Thompson in Hartford. CANDELARIO has been detained since his arrest on February 1.
This matter was investigated by the Bridgeport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
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U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Boone County Man Pleads Guilty in Charleston to Selling HeroinRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Booth Goodwin announced today that Leonard Dillon, 58, of Bim, Boone County, West Virginia pled guilty in federal court in Charleston to selling heroin. On March 21, 2013, Dillon sold heroin to a confidential informant working with law enforcement. On four other occasions in March and April 2013, Dillon sold heroin and oxycodone to a confidential informant. Dillon faces up to twenty years in prison and a $1,000,000 fine when he is sentenced on December 4, 2014.
The investigation was conducted by the United States Drug Enforcement Administration and the Boone County Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney Jennifer Rada Herrald.
The case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin.
Armed Felon Sentenced in Federal CourtRead the Press Release
United States Attorney, Kenyen R. Brown announced Johnnie Lee Parks, 43, of Mobile, was sentenced today in federal court to 33 months imprisonment for his illegal possession of a firearm. Parks was previously convicted of possession of marijuana first when he was found in possession of a handgun under suspicious circumstances. United States District Court Judge William H. Steele imposed the sentence this morning.
Judge Steele ordered that Parks undergo mental health and drug abuse treatment, and that he serve a three-year term of supervised release when he is released from custody. The judge did not impose a fine, but did order that Parks pay $100 in special mandatory assessments.
The case was investigated by the Mobile Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney's Office by Assistant United States Attorney Gloria Bedwell.
Ana Alliegro Pleads Guilty to Violation of the Federal Election Campaign ActRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Ana Alliegro, 44, of Miami, pled guilty today before U.S. District Court Judge Robert N. Scola, Jr. to having violated the Federal Election Campaign Act in connection with the Democratic Party primary election for Florida’s 26th Congressional District. Sentencing for Alliegro has been scheduled for September 10, 2014 at 8:30 a.m. before U.S. District Court Judge Scola.
Specifically, Alliegro pled guilty to engaging in a conspiracy to make false statements to the Federal Election Commission and to violate the contribution limits of the Federal Election Campaign Act (Count 1); making a false statement (Count 2); and making illegal campaign contributions (Counts 3 & 4). At sentencing, Alliegro faces a maximum term of five years in prison on each count and a fine of up to $250,000 on each count.
Mr. Ferrer commended the investigative efforts of the FBI’s Miami Area Corruption Task Force. The case is being prosecuted by Senior Litigation Counsel Thomas J. Mulvihill.
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.
Alleged Bonanno Organized Crime Family Associate Sentenced to Eleven Years ImprisonmentRead the Press Release
Earlier today at the federal courthouse in Brooklyn, New York, John Venizelos, also known as “John V,” “Big Man,” and “John from Staten Island,” an alleged associate of the Bonanno organized crime family of La Cosa Nostra, was sentenced to 11 years in prison to be followed by five years of supervised release. In May 2013, Venizelos pled guilty to marijuana trafficking charges contained in a superseding indictment returned on April 3, 2013. As part of his sentence, Venizelos will also forfeit $148,480 and two firearms that federal agents seized from multiple locations in Staten Island where Venizelos stored narcotics and drug proceeds.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and James Hunt, Acting Special Agent-in-Charge of the Drug Enforcement Administration, New York (DEA).
"Venizelos used violence and intimidation to protect his position as a major narcotics distributor. Those who challenged him were threatened, tortured, and beaten. Venizelos's conviction underscores our commitment to prosecuting drug traffickers who flood our communities with narcotics, especially when those individuals have chosen a life of organized crime,” stated United States Attorney Lynch. Ms. Lynch extended her grateful appreciation to the Drug Enforcement Administration, the New York Police Department, and New York State Police for their work on the case. Ms. Lynch also expressed her appreciation to the Laval Police Service and the Department of Justice Office of International Affairs for their invaluable assistance during this multi-year international investigation.
“Today’s sentencing is a credit to the New York Drug Enforcement Task Force who worked diligently with the United States Attorney’s Office in order to keep our city and state crime free. John Venizelos was responsible for flooding American streets with thousands of pounds of marijuana while profiting millions of dollars. DEA is committed to identifying the drug kingpins that sit on the top of the drug trafficking chain and bringing them to justice,” stated DEA Acting Special Agent-in-Charge Hunt.”
According to the indictment and other court filings submitted by the government, Venizelos was a major Staten Island-based distributor of narcotics for a Canadian narcotics trafficking enterprise. Specifically, Venizelos was charged with narcotics and firearm-related offenses and witness tampering as a part of an indictment in which ten members of a Montreal-based drug distribution organization affiliated with the Rizzuto and Bonanno crime families, the Hells Angels, and the Sinaloa Cartel were charged with trafficking over $1 billion worth of marijuana, cocaine, and ecstasy into the United States between 1998 and 2012. The organization transported tens of thousands of pounds of marijuana from outdoor growers in British Colombia to Montreal, Canada, and controlled numerous warehouses in and around Montreal for the manufacture of ecstasy and hydroponic marijuana. The drugs were smuggled into the United States using transportation networks run by the Hells Angels and Native American co-conspirators from the Akwesasne Mohawk Reservation along the U.S./Canadian border. Once the drugs were sold in the United States, much of it by distributors tied to the Bonanno crime family in New York, the organization used millions of dollars in drug proceeds to purchase more cocaine from the powerful Sinaloa Cartel in Mexico for exportation to and distribution in Canada. Venizelos was charged with witness tampering in connection with his attempts to dissuade a co-conspirator from cooperating with law enforcement by, among other things, informing the co-conspirator about a $2 million “hit fund” set aside to murder or otherwise retaliate against any individuals who cooperated with the government.
During the course of the investigation, federal agents seized more than 80 kilograms of cocaine and approximately $10,000,000 in suspected drug proceeds. At the time of Venizelos’ arrest, agents discovered narcotics, multiple encrypted Blackberry devices, approximately $150,000 in drug proceeds, and multiple firearms in his residence and a second stash house used by Venizelos – including a loaded semi-automatic handgun that had been stolen from a law enforcement officer. During the search, federal agents also discovered several handwritten letters addressed to Venizelos by an incarcerated associate of organized crime discussing a myriad of violent crimes committed by the author with, or on behalf of, Venizelos, including “a broad daylight kidnaping” and “torture” of an individual Venizelos suspected of stealing his drugs, threats of violence, and vicious assaults against customers who owed Venizelos drug debts, and preventing a witness (through threats and intimidation) from positively identifying Venizelos for a crime that would have resulted in him serving “at least 7 years in jail.”
The government's case is being prosecuted by Assistant United States Attorneys Steven L. Tiscione, Gina M. Parlovecchio, Amir H. Toossi, and Tanisha Payne.
The Defendant:
JOHN VENIZELOS
Age: 35
"Pills to Needles" Community Planning Meeting Draws Diverse Leadership Work Begins for Community Plan to Fight Opiate Abuse and AddictionRead the Press Release
BIRMINGHAM -- More than 40 people interested in developing a comprehensive strategy to address opiate abuse and addiction and quell the rising number of heroin overdose deaths in north Alabama met today at Canterbury United Methodist Church to organize working groups and lay the groundwork for a community action plan, announced U.S. Attorney Joyce White Vance.
Today's community planning meeting was an outgrowth of the June 10 community awareness summit, "Pills to Needles -- The Pathway to Rising Heroin Deaths," held at the University of Alabama at Birmingham. The summit, sponsored by the U.S. Attorney's Office, the UAB School of Public Health, the Jefferson County Department of Health and the Addiction Prevention Coalition, drew more than 300 people and launched the effort to develop a strategic plan.The summit, and the need for a planned community response, followed a sharp spike in heroin overdose deaths in north Alabama, and across the nation, within the past five years. Heroin-related deaths in Jefferson, Shelby and Tuscaloosa counties soared from 15 in 2008 to 83 in 2012. The number dipped to 72 confirmed deaths for the three counties in 2013, but in April in Jefferson County, the number of heroin overdose deaths was at 36, on pace to exceed the county's 58 heroin deaths in both 2012 and 2013. In the Northern District of Alabama, federal, state and local law enforcement have worked together since 2012 to prioritize prosecution of heroin suppliers and street dealers. Such prosecutions continue, but enforcement, alone, will not solve the problem.
The key accomplishment today was engaging influential community leaders, with specific expertise across various disciplines and areas of concern, to detail the next steps for working groups that will begin to draw the strategic plan.
"Collaboration across communities and professional disciplines is vital in creating a strategic plan that will organize resources and establish a network that can address the myriad ways opiate abuse affects our families, our lives and our society," Vance said. "Leaders from the medical, education, law enforcement and faith-based communities in North Alabama, as well as addiction, prevention and treatment professionals, and members of families who have lost a loved-one to overdose, came together today to begin the serious work of developing an action plan."
“This is a serious public health crisis in our community that demands action," said Jefferson County Health Officer Mark Wilson. "The dramatic increase in the number of overdose deaths is quite tragic, but this number only tells part of the story of the uncountable number of individuals and families being devastated by addiction to heroin and other opioids," he said. "We’ve talked about it, and we’ve begun to raise awareness. Now begins the hard work of actually doing something that can make a positive difference.”
Working groups were established in five strategic areas: Public Awareness, Medical Community Engagement, Effective Research and Policy, Law Enforcement Partnership, and Access to Resources. The next step is for group members to identify leaders, refine the group's priority items and begin to develop strategies to accomplish their goals. Public and private funding is being sought to support continuing the work toward a comprehensive action plan.
The work is proceeding under the direction of a steering committee identified before the Pills to Needles summit in June. Members of the steering committee are Wilson, UAB School of Public Health Dean Max Michael, Northern District of Alabama U.S. Attorney's Office Law Enforcement Coordination Manager Lyndon J. Laster, Addiction Prevention Coalition Executive Director J. Sandor Cheka, and Treatment Alternatives for Safer Communities Director Foster Cook.
Monday 18 August 2014
Worley Man Sentenced for Distributing Methamphetamine on Coeur D'Alene ReservationRead the Press Release
COEUR D'ALENE - Larry Donald Havier, Jr., 37, of Worley, Idaho, was sentenced today to 63 months in prison followed by five years of supervised release for distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Havier to forfeit $4,250 in drug proceeds to the Government. He pleaded guilty to the charge on May 27, 2014.
According to court documents, between May 2013, and January 2014, Havier conspired with others to distribute methamphetamine on the Coeur d’Alene Indian Reservation. The defendant admitted that on at least two occasions he delivered methamphetamine to a confidential source of the Bureau of Indian Affairs and Drug Enforcement Administration.
The case was investigated by the Bureau of Indian Affairs (BIA) and Drug Enforcement Administration (DEA), Coeur d’Alene Tribal Police Department, and Plummer Police Department.
Williamson County Man Pleads Guilty to Crack Cocaine OffensesRead the Press Release
Follow @SDILNewsOn August 15, 2014, Eric Scott Russell, 48, of Carbondale, Illinois, pled guilty to a two-count superseding indictment, charging conspiracy to distribute crack cocaine and distribution of crack cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The offenses occurred between 2012 and April 2013, in Williamson and Jackson Counties. Evidence at the plea hearing established that Russell was involved with co-defendant Albert Wesley, a/k/a “Boogie,” and others in the distribution of crack cocaine. On April 7, 2013, Russell sold crack cocaine to a confidential source working for law enforcement. Russell faces a prison term of up to 20 years on each count, to be followed by 3 years’ supervised release, and a $1,000,000 fine. Russell is currently being held without bond pending a December 3, 2014, sentencing hearing. Wesley has previously pled guilty and is awaiting sentencing.
The investigation is being conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, Carbondale Police Department, and Drug Enforcement Administration. The Williamson County and the Jackson County State’s Attorney’s Offices also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.