Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
2 October 2014
Three Defendants Charged Separately in Jamaica Based Lottery SchemesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and William D. Snyder, Sheriff, Martin County Sheriff’s Office (MCSO), announce the indictments of three individuals for their roles in Jamaica based telemarketing fraud schemes. Shanice Ethridge, 24, of Broward County, was charged with conspiracy to commit mail fraud, in violation of Title 18, United States Code, Section 1349, wire fraud, in violation of Title 18, United States Code, Section 1343, with an enhanced penalty for targeting the elderly, in violation of Title 18, United States Code, Section 2326. Mikhail Gorbachev George Williams, 25, of Broward County, was charged with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, wire fraud, in violation of Title 18, United States Code, Section 1343, and unlicensed money transmitting business, in violation of Title 18, United States Code, Section 1960. Fabian Winston Parkinson, 33, of Miami-Dade County, has been charged with mail fraud, in violation of Title 18, United States Code, Section 1341.
Defendants Ethridge and Williams made their initial appearance this morning before United States Magistrate Judge Patrick M. Hunt in Fort Lauderdale. Defendant Parkinson is scheduled to make his initial appearance this afternoon in Dallas, Texas.
According to the indictments, Ethridge, Williams and Parkinson participated in fraudulent lottery schemes emanating from Jamaica, in which elderly victims throughout the United States were told that they had won a lottery or a sweepstakes but first had to pay taxes, duties or fees on their supposed winnings in order to receive their prize. These elderly victims were induced to send thousands of dollars to cover bogus fees, taxes and insurance for lottery winnings they had not won.
According to the indictments, the co-conspirators and co-schemers sent letters and made multiple telephone calls to the victims claiming to be from a purported sweepstakes/lottery company in the United States. As alleged in the indictment, the victims were told that they had to pay several thousand dollars in order to collect their purported winnings. The co-conspirators and co-schemers allegedly told the victims to make payments to either Ethridge, Williams or Parkinson in order to receive their winnings. Ethridge, Williams and Parkinson received the victims money either by wire transfers, cash, money orders and checks though the U.S. mail and prepaid debit cards.
“We will not allow South Florida to be a pipeline for these money couriers who are the lifeblood of these fraudulent schemes that prey on the elderly and vulnerable,” said United States Attorney Wifredo Ferrer. “We are committed to cutting off the money flow by dismantling these fraudulent lottery cells and prosecuting all of those involved, both here and abroad.”
“Combating scammers who target senior citizens is a priority for the Postal Inspection Service” said U.S. Postal Inspector in Charge in Miami Ronald Verrochio. “Aside from enforcement; we are also actively taking steps to educate elderly Americans about the dangers of lottery frauds.”
“These arrests show that HSI is committed to stopping individuals who prey on our senior citizens,” said Special Agent in Charge of HSI Miami Alysa D. Erichs. “We will continue to work with our international partners and other law enforcement agencies to put an end to these criminal organizations.”
“The Martin County Sheriff’s Office is proud to be part of the team bringing scam artists such as these to justice,” said Martin County Sheriff William D. Snyder. “These scammers who prey on our seniors in Martin County and elsewhere cannot be allowed to continue. These arrests are a testament to our joint efforts with our law enforcement’s partners at the state, local and federal levels.”
Mr. Ferrer commended the investigative efforts of USPIS, ICE-HSI, and the Martin County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Bertha R. Mitrani.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
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.
Thomas L. Kimmel Sentenced for Conspiracy, Mail Fraud, and Money LaunderingRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, Chief United States District Judge James C. Dever III sentenced Thomas L. Kimmel, 68, to 264 months imprisonment followed by 3 years of supervised release. Kimmel was ordered to pay over $16.5 million in restitution. On June 26, 2014 KIMMEL was convicted by a jury trial of Conspiracy, Mail Fraud, and Money Laundering.
KIMMEL was named in an Indictment filed on August 21, 2013. Assistant United States Attorney David A. Bragdon stated, “Kimmel used his professed spirituality and position of trust as a tool to defraud victims at their churches-the very places they felt the most safe. From day one, Kimmel told lies to maximize his commissions. He used trust and faith to defraud hundreds of victims, many of whom invested their life’s savings.”
At trial, the Government presented evidence that KIMMEL solicited about $20 million for Sure Line Acceptance Corporation from investors. Most of these investors found out about Sure Line through financial conferences that KIMMEL gave at churchesrelating to Biblical principles of finance and getting out of debt. Most of the victims never received any of their principal back. KIMMEL would typically spend a few minutes of each conference telling investors about a 12% collateralized note program. Many of these presentations were recorded, and the Government presented evidence that Kimmel’s statements about Sure Line were false and that the collateralized note program was a Ponzi scheme. The jury heard testimony from three conspirators who had previously pled guilty to Conspiracy and Sale of Unregistered Securities; James Willis Kirk, Jr., Glen E. Smith, Jr., and Carol April Graff. The jury also heard testimony from about fifteen victims.
Investigation of this case was conducted by the Federal Bureau of Investigation, the Internal Revenue Service, and the Postal Inspection Service. Assistant United States Attorneys David A. Bragdon and Evan Rikhye prosecuted the case.
Texas Man Indicted for Armed Bank RobberyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Waxahachi, Texas, man was indicted by a federal grand jury today for armed bank robbery.
Richard Wayne Swicegood, 37, of Waxahachi, was charged in an indictment returned by a federal grand jury in Jefferson City, Mo.
Today’s indictment alleges that Swicegood used a weapon to steal $2,770 from Boone County National Bank, 2711 Broadway, Columbia, Mo., on June 6, 2012.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the FBI, the Columbia, Mo., Police Department and the Arkansas State Police.Tampa Man Convicted of Attempting to Induce Child to Engage in Sex ActsRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that late yesterday, a federal jury found James Patrick Baker (33, Tampa) guilty of attempting to induce a child to engage in sex acts. He faces a maximum penalty of life in federal prison. A sentencing hearing has been scheduled for January 15, 2015. Baker was indicted on May 22, 2014.
According to evidence and testimony presented at trial, between April 17, 2014, and April 26, 2014, Baker communicated online with an individual he thought was a single mother of a twelve-year-old girl. He was actually communicating with undercover law enforcement officers, participating in Operation Intercept III, seeking to identify individuals who pose a danger to children. During the conversations, Baker suggested that he, the mother, and the child engage in various sex acts together. Baker emailed a picture of his genitalia to the “mother” and asked her to show her “child” the photograph. He also had phone conversations with the “mother” and the “child.”
On the evening of April 26, 2014, Baker left work early so that he could meet the “mother” and “child.” He drove to a location in Sarasota and was arrested. Baker had discussed bringing candy for the child as well as a condom. He had both items with him when he was arrested.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Sarasota County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Amanda C. Kaiser.
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 (CEOS), 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.projectsafechildhood.gov.
Stockton Woman Sentenced to Six Years in Prison for Aggravated I.D. Theft in Large Scale U.S. Mail Theft and Bank Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — United States Attorney Benjamin B. Wagner announced today that Regina L. Perea, 34, of Stockton, was sentenced today by U.S. District Judge Morrison C. England Jr. to six years in prison for three counts of aggravated identification theft.
According to court documents, Perea and her husband, Rudy A. Trujillo, 35, also of Stockton, possessed hundreds of pieces of stolen U.S. mail, along with hundreds of stolen checks, credit cards and identification documents at their Stockton residence. During a search of their residence, law enforcement recovered the stolen mail and found evidence indicating that the defendants were altering checks, and manufacturing credit cards. When Trujillo and Perea were arrested in San Jose, they were driving a stolen vehicle with stolen license plates and were again in possession of a large quantity of stolen U.S. mail, checks, credit cards, and identification documents. Perea had assumed the identity of at least two additional female victims while she and Trujillo were on the run from law enforcement.
This case is the product of an investigation by the United States Postal Inspection Service and the San Joaquin County Sheriff's Office with assistance from the Stockton Police Department, the San Jose Police Department, the Placer County Sheriff's Office, and the Delta Regional Auto Theft Task Force. 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 arrest and prosecute all those responsible for stealing U.S. Mail and using the contents of stolen U.S. Mail in furtherance of fraud and identity theft crimes."
On May 15, 2014, Perea and Trujillo pleaded guilty to three counts of aggravated identity theft. Trujillo, who is in federal custody, is scheduled to be sentenced on November 6, 2014. He faces a mandatory minimum sentence of two years in prison for each count of 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.
Stockton Woman Sentenced to over 5 Years in Prison for ID Theft and FraudRead the Press Release
SACRAMENTO, Calif. — Frances Marie Charles, 35, of Stockton, was sentenced today by United States District Judge Troy L. Nunley to five years and five months in prison for aggravated identity theft and mail fraud, United States Attorney Benjamin B. Wagner announced.
According to court documents, between June 2012 and December 2013, Charles participated in a scheme to obtain replacement American Express credit cards in the names and account numbers of others. In total, the scheme yielded over 215 credit cards in the names of at least 172 different people. Charles would make calls to American Express and use stolen identification and financial information of victims to cause the replacement cards to be sent to Stockton. Charles and others would then use the cards to make various fraudulent charges and purchases. The total value of the transactions attempted with the cards was well in excess of $400,000.
In sentencing Charles, Judge Nunley noted how much identity theft disrupts the lives of victims, and how much time victims often need to spend addressing the effects of identity theft in their lives.
This case was the product of an investigation by the United States Secret Service. Assistant United States Attorney Christopher S. Hales prosecuted the case.
Statement of Manhattan U.S. Attorney Preet Bharara on Conviction of David RileyRead the Press Release
“As the jury unanimously found, David Riley exploited his position and access to information at Foundry Networks, a publicly traded technology company. What Riley forged at Foundry was a pipeline of material, nonpublic information that enabled others to engage in illegal insider trading and reap a windfall of more than 27 million dollars. What Riley got out of the arrangement is a felony conviction and the prospect of losing his liberty. He becomes the 87th defendant convicted of insider trading after trial or by guilty plea in this District in the last five years.”
St. Croix Man Sentenced for Manufacturing MarijuanaRead the Press Release
St. Croix, USVI – On Thursday, October 2, 2014, Chief District Court Judge Wilma A. Lewis sentenced Scott Bass, 41, to 16 months imprisonment, one year of supervised release and a $100.00 special assessment.
On May 14, 2014, Bass pleaded guilty to Count One of an indictment charging him with manufacturing marijuana. Court records show that Bass was arrested on August 16, 2013, after federal agents and task force officers searched the downstairs apartment of his residence and seized 102 marijuana plants, processed marijuana and marijuana cultivation equipment. The marijuana was intended for distribution.
The case was investigated by the U.S. Drug Enforcement Administration (DEA). The case was prosecuted by Assistant U.S. Attorney Rhonda Williams-Henry.
Springfield Man Indicted for Producing Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., man has been indicted by a federal grand jury for using a minor to produce child pornography.
Tyler Coons, 23, of Springfield, was charged in a two-count indictment returned under seal by a federal grand jury in Springfield on Tuesday, Sept. 30, 2014. The indictment was unsealed and made public today upon Coons’s arrest and initial court appearance.
The federal indictment alleges that Coons used a minor, identified as “Jane Doe #1,” to produce child pornography between Jan. 1 and June 20, 2014. Coons is also charged with one count of receiving and distributing child pornography.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Greene County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Springfield Man Indicted for Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., man has been indicted by a federal grand jury for receiving and distributing child pornography over the Internet.
Jarod “Bull” Michel, 31, of Springfield, was charged in an indictment returned under seal by a federal grand jury in Springfield on Tuesday, Sept. 30, 2014. The indictment was unsealed and made public today upon Michel’s arrest and initial court appearance.
The federal indictment alleges that Michel received and distributed child pornography over the Internet between July 18, 2013, and May 20, 2014.
According to court documents, Michel’s computer was identified by two separate law enforcement agencies conducting independent undercover investigations concerning the distribution of child pornography using peer-to-peer file-sharing software. Investigators allegedly downloaded several videos of child pornography that were being shared over the Internet by Michel’s computer.
The indictment also contains a forfeiture allegation, which would require Michel to forfeit to the government any property used to commit the alleged offense, including a laptop computer.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Springfield Felon Charged with Illegal Firearm and Ammunition PossessionRead the Press Release
BOSTON – A Springfield man was charged yesterday in U.S. District Court in Springfield with illegally possessing a firearm and ammunition.
Jamel Bolden, 21, was charged in an Information with possessing a firearm and ammunition after being previously convicted of a crime punishable by more than one year in prison.
According to the Information, on June 7, 2013, Bolden possessed a Ruger Single Six .22 Magnum caliber revolver loaded with six rounds of CCI .22 caliber ammunition after being previously convicted of a crime punishable by more than one year in prison. According to the plea agreement, Bolden has also agreed to plead guilty to assault with a dangerous weapon in a related case in Hampden Superior Court.
The charging statute provides a sentenced of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; and Springfield Police Commissioner John Barbieri made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
South Florida Doctor and Other Professionals Charged with Health Care Fraud at Biscayne Milieu Health Center, Inc.Read the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Derrick Jackson, Acting Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General’s (HHS-OIG), Miami Regional Office, announce that Salo Shapiro, 69, a medical doctor, of Broward County, Marlene Cesar, 63, a licensed nurse practitioner, of Allentown, Pennsylvania and former resident of Miami, and Sonia Gallimore, 73, a licensed mental health counselor, of Broward County, were indicted on charges of conspiracy to commit health care fraud, health care fraud, and false statements related to health care matters, in violation of Title 18, United States Code, Sections 1349, 1347, and 1035.
According to the indictment, the defendants and their co-conspirators caused the submission of over $55 million dollars in false and fraudulent claims to Medicare through Biscayne Milieu, a Miami-based clinic which purportedly operated a partial hospitalization program (PHP) – a form of intensive treatment for severe mental illness. Instead, the defendants and their co-conspirators devised a scheme in which ineligible Medicare beneficiaries were admitted to Biscayne Milieu and Medicare was fraudulently billed for services that were never provided. Many of the patients admitted to Biscayne Milieu were not eligible for PHP because they were chronic substance abusers, suffered from severe dementia and would not benefit from group therapy, or had no mental health diagnosis but were seeking exemptions for their U.S. citizenship applications.
The indictment alleges that, as an attending physician at Biscayne Milieu, Shapiro authorized the treatment of patients that he knew were ineligible for PHP treatment. The same was true of Cesar, who also knowingly admitted ineligible patients as a nurse practitioner. The indictment further alleges that Gallimore, a licensed mental health counselor, conducted sham therapy sessions for patients that she knew were ineligible for PHP treatment. As a result of the defendants’ and their co-conspirators’ actions, Biscayne Milieu billed Medicare for over $55 million in false and fraudulent claims, and Medicare paid the clinic over $11 million.
Various owners, a doctor, managers, therapists, patient brokers and other employees of Biscayne Milieu have also been charged with various health care fraud, kickback, money laundering and other offenses in three other indictments unsealed in September 2011, May 2012, and February 2013. Biscayne Milieu, its owners, and more than 25 of the individual defendants charged in these cases have pleaded guilty or have been convicted at trial. Antonio and Jorge Macli and Sandra Huarte – the owners and operators of Biscayne Milieu – were each convicted at trial of various offenses and were sentenced in April 2013 to 30 years, 25 years, and 22 years in prison, respectively. Dr. Gary Kushner, another attending physician and former medical director of Biscayne Milieu, was sentenced to 12 years in prison in March 2013.
The case is being prosecuted by Assistant U.S. Attorney James V. Hayes of the U.S. Attorney’s Office for the Southern District of Florida; James V. Hayes was formerly a Trial Attorney with the Fraud Section of the Justice Department’s Criminal Division. The case was investigated by the FBI with the assistance of HHS-OIG, and was brought by the U.S. Attorney’s Office for the Southern District of Florida in coordination with the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
An indictment is merely an accusation, and defendants are presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Six Eddy County Residents Sentenced to Federal Prison for Robbery Spree in Southeastern New MexicoRead the Press Release
ALBUQUERQUE – Six residents of Eddy County, N.M., were sentenced yesterday afternoon and this morning by a federal judge in Las Cruces, N.M., to prison terms for violating the Hobbs Act by robbing businesses engaged in interstate commerce, announced U.S. Attorney Damon P. Martinez, 5th Judicial District Attorney Janetta B. Hicks, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, Chief Kent Waller of the Carlsbad Police Department, Chief Don Raley of the Artesia Police Department, and Chief Chris McCall of the Hobbs Police Department.
The six men, Bennie Juarez, Gucci Lopez, Logan Magby, Mario Muro, Rance Williams, and Tyler Williams, together with their co-defendant Maurice Williams who was previously sentenced, were charged with violating the Hobbs Act in a criminal complaint filed on May 29, 2013. According to court filings, the seven men, acting in groups, robbed the following five commercial businesses in southeastern New Mexico between Nov. 2012 and Jan. 2013:
-
The Family Dollar located at 403 W. Quay Street in Artesia, N.M., by Juarez, Lopez and Maurice Williams on Nov. 15, 2012.
-
The Shop-N-Go located at 22212 W. Lea Street in Carlsbad by Juarez, Lopez and Rance Williams on Nov. 28, 2012.
-
The Family Dollar located at 901 W. Mermod Street in Carlsbad by Juarez, Lopez and Maurice Williams on Dec. 2, 2012.
-
The Dollar General located at 730 N. Dal Paso in Hobbs, N.M., by Juarez, Rance Williams and Tyler Williams on Dec. 9, 2012.
-
The Domino’s Pizza located at 302 S. 1st Street in Artesia by Juarez, Muro, Magby and Tyler Williams on Jan. 6, 2013.
The defendants wore masks or covered their faces with bandanas and brandished firearms at the store employees when they committed the aforementioned robberies.
Bennie Juarez, 28, of Artesia, N.M., pled guilty on Aug. 20, 2013, to five counts of conspiracy to violate the Hobbs Act by robbing each of the five businesses identified above. Juarez was sentenced yesterday afternoon to 42 months in prison followed by three years of supervised release. He also was ordered to pay, jointly with his co-defendants, $28,806.22 in restitution to the victims of his criminal conduct.
Gucci Lopez, 26, of Artesia, N.M., pled guilty on Nov. 5, 2013, to three counts of conspiracy to violate the Hobbs Act by robbing three businesses involved in interstate commerce. Lopez was sentenced this morning to 12 months in prison followed by three years of supervised release. He also was ordered to pay, jointly with his co-defendants, $14,599.40 in restitution to the victims of his criminal conduct.
Logan Magby, 20, of Carlsbad, N.M., pled guilty on Sept. 3, 2013, to conspiracy to rob the Domino’s Pizza in Artesia on Jan. 6, 2013. Magby was sentenced yesterday to 15 months in prison followed by three years of supervised release. He also was ordered to pay, jointly with his co-defendants, $1,107.82 in restitution to the victims of his criminal conduct.
Mario Muro, 23, of Carlsbad, N.M., pled guilty on Sept. 13, 2013, to conspiracy to rob the Domino’s Pizza in Artesia on Jan. 6, 2013. Yesterday Muro was sentenced to 21 months in prison followed by three years of supervised release. He also was ordered to pay, jointly with his co-defendants, $1,107.82 in restitution to the victims of his criminal conduct.
Rance Williams, 24, of Carlsbad, N.M., pled guilty on Sept. 10, 2013, to conspiracy to rob the Shop-N-Go in Carlsbad on Nov. 28, 2012, and conspiracy to rob the Dollar General in Carlsbad on Dec. 2, 2012. Williams was sentenced yesterday afternoon to 25 months in prison followed by three years of supervised release. He also was ordered to pay, jointly with his co-defendants, $11,323.00 in restitution to the victims of his criminal conduct.
Tyler Williams, 19, of Carlsbad, N.M., pled guilty on Sept. 13, 2013, to conspiracy to rob the Dollar General in Hobbs on Dec. 9, 2012, and conspiracy to rob the Domino’s Pizza in Artesia on Jan. 6, 2013. Yesterday Williams was sentenced to 24 months in prison followed by three years of supervised release. He also was ordered to pay, jointly with his co-defendants, $10,206.82 in restitution to the victims of his criminal conduct.
Maurice Williams, 35, of Carlsbad, N.M., entered a guilty plea on Sept. 10, 2013, to conspiracy to rob the Family Dollar in Artesia on Nov. 15, 2012, and conspiracy to rob the Family Dollar in Carlsbad on Dec. 2, 2012. Williams was sentenced on July 29, 2014, to 130 months in federal prison followed by three years of supervised release. He also was ordered to pay, jointly with his co-defendants, $3,420.00 in restitution to the victims of his criminal conduct.
The defendants were prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence 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.
These cases were investigated by the Roswell office of the FBI, Carlsbad Police Department, Artesia Police Department and Hobbs Police Department, with assistance from the 5th Judicial District Attorney’s Office. The cases were prosecuted by Assistant U.S. Attorneys Luis A. Martinez and E. Garreth Winstead III of the U.S. Attorney’s Las Cruces Branch Office.
-
Shreveport Man Sentenced to 15 Months in Prison for Stealing from ATMRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced today that a Shreveport man was sentenced to 15 months in prison for stealing more than $30,000 from an ATM located on bank property, causing more than $35,000 worth of damage in the process.
Frederick Charles Davis, 47, of Shreveport, was sentenced by U.S. District Judge S. Maurice Hicks Jr. for one count of bank theft. The judge also ordered Davis to serve three years of supervised release and pay $61,640 in restitution. According to evidence presented at the July 1, 2014 guilty plea, Davis broke into an automated teller machine (ATM) on July 13, 2012, located at the end of a drive-through lane at a Richland State Bank in Minden, La., and stole $30,320. He used a power tool and a chain attached to the back of his truck to open the ATM, which caused more than $30,000 in damage.
The FBI, Shreveport Office, conducted the investigation. Assistant U.S. Attorney Allison D. Bushnell prosecuted the case.Ship Operator Sentenced for Violations of the Act to Prevent Pollution from Ships and Obstruction of JusticeRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MARINE MANAGERS LTD., a Liberian corporation headquartered in Piraeus, Greece, was sentenced today to a three-year term of probation. In addition, U.S. District Judge Carl J. Barbier ordered MARINE MANAGERS LTD. to pay an $800,000 fine and a $100,000 community service payment. MARINE MANAGERS, LTD. previously pled guilty to a two-count bill of information charging the company with violating Title 33, United States Code, Section 1908(a) for knowingly failing to maintain an oil record book while in port and within the internal waters of the United States, and Title 18, United States Code, Section 1519 for the submission of a knowingly false document to the U.S. Coast Guard.
According to court documents, MARINE MANAGERS LTD. was the operator of the Motor Vessel (“M/V”) Trident Navigator, a vessel that transported bulk cargo between various ports and places in the world, including the Port of New Orleans and other locations in the Eastern District of Louisiana. The Act to Prevent Pollution from Ships (“APPS”), makes it a crime to knowingly violate protocols established regarding discharges of waste and documentation of same. On or about December 28, 2013, while the M/V Trident Navigator was sailing, the Chief Engineer instructed the Second Engineer to construct a bypass system (often referred to as a “magic pipe”) that could be connected between the vessel’s bilge pump and overboard discharge valve. The purpose of the bypass was to discharge the contents of the ship’s bilge tank directly into the sea, circumventing the ship’s Oil Water Separator and Oil Content Monitor. On or about December 31, 2013, the Chief Engineer ordered the Second Engineer to hook up the “magic pipe” and to discharge several metric tons of oily bilge waste from the bilge tank directly into the sea. The “magic pipe” was removed after the discharge was completed and the discharge was not recorded in the vessel’s Oil Record Book as required. The Chief Engineer additionally confiscated a crew member’s cell phone, which contained a photograph of the installed “magic pipe,” and caused that photo to be deleted.
On or about January 18, 2014, U.S. Coast Guard personnel boarded the M/V Trident Navigator while it was anchored in the Mississippi River near New Orleans, Louisiana, and within the Eastern District of Louisiana. A tip from a crewmember led them to the discovery of the “magic pipe.” The Chief Engineer was uncooperative and further obstructed the Coast Guard investigation by instructing crewmembers to deny knowledge of the “magic pipe.”
The actions of the crewmembers on the vessel were contrary to defendant MARINE MANAGERS LTD.’s written policies and procedures. However, defendant MARINE MANAGERS LTD. accepts that it is vicariously liable for their actions.
U.S. Attorney Polite stated, “Today’s sentence ensures that Marine Managers will be held responsible for the criminal actions of its employees who illegally dumped waste into our region’s waterways.”
"The Coast Guard is committed to uncovering and investigating regulatory and criminal violations that threaten the health of our marine environment. The successful prosecution of this case is due to the outstanding cooperation between Coast Guard Sector New Orleans, the Coast Guard Investigative Service, and the Department of Justice," said Rear Admiral Kevin S. Cook, Eighth Coast Guard District Commander.
U.S. Attorney Polite praised the work of the United States Coast Guard Criminal Investigative Service in this matter. Assistant United States Attorney Gregory M. Kennedy and DOJ Environmental Crimes Section Attorney Kenneth Nelson are in charge of the prosecution.
Shell Company Operator Pleads Guilty in Multi-Million Dollar Health Care Fraud and Money Laundering SchemeRead the Press Release
A Florida managing member of a shell company pleaded guilty today in federal court in Tampa for his role in a multi-million dollar health care fraud and money laundering scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Acting Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office, and Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office made the announcement.
Leonard Austin, 45, of Lake Worth, Florida, pleaded guilty in the U.S. District Court for the Middle District of Florida to conspiracy to commit money laundering of health care fraud proceeds. His sentencing date will be set at a later date by the court.
According to his plea agreement and factual proffer, from June 2010 through April 2014, Austin’s co-conspirators submitted $12 million in fraudulent claims to Medicare through three purported health clinics, Cornerstone Health Specialists of Lakeland, Florida, Summit Health Specialists P.L. of Tampa, Florida, and Coastal Health Specialists LLC of Lakeland and Melbourne, Florida. These fraudulent claims included claims resulting from illegal kickback arrangements and claims for radiology, audiology, neurology, and cardiology services that were never rendered. In fact, some of the services were purportedly provided to Medicare beneficiaries who actually had died before the supposed date of service. Medicare paid over $2,500,000 on the fraudulent claims.
Austin admitted that he and his co-conspirators attempted to conceal the funds by transferring funds through bank accounts for the clinics and Austin’s shell company, BONB LLC, aka BioScan, and other entities.
Four other defendants were indicted in this case on health care fraud and money laundering charges and are scheduled for a jury trial on April 6, 2015. An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by HHS-OIG and the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Middle District of Florida. This case is being prosecuted by Trial Attorney Christopher J. Hunter of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Sex Offender Sentenced to 8+ Years in Prison for Failing to RegisterRead the Press Release
A violent sex offender who failed to register as required by law was sentenced today in U.S. District Court in Seattle to 99 months in prison, announced Acting U.S. Attorney Annette L. Hayes. TIMOTHY G. DORAN, 48, of Seattle was arrested in December 2011. DORAN pleaded guilty to failing to register as a sex offender in September 2012. However, over the last two years prosecutors presented evidence tying DORAN to the murder of a woman in Vietnam. U.S. District Judge Robert S. Lasnik ruled prosecutors had proven DORAN guilty of the murder by clear and convincing evidence, thus making the murder something he could consider at sentencing. Today Judge Lasnik noted DORAN had a history of “multiple instances of violence and depravity against women he claimed to love and cherish…He is a clear and present danger to any woman he establishes a relationship with…. He is a serial domestic abuser.”
“This case demonstrates our commitment to working with our law enforcement partners around the world to ensure justice is done,” said Acting United States Attorney Annette L. Hayes. “Working with law enforcement in Vietnam, bringing witnesses to court here in Seattle, our prosecutors made sure all the relevant facts could be considered by the court to hold this defendant accountable.”
According to records filed in the case, DORAN has a lengthy history of violence against women, including rape and assaults. In 1990 he was convicted of breaking his wife’s ankle and using a knife to make a cut across her neck. In 1992 DORAN raped and brutally beat his ex-girlfriend, leaving her and her children to die in a home filling with natural gas. He was sentenced to more than seven years in prison and was required to register as a sex offender. Following his release from prison for that crime, his new girlfriend sought a protective order because he threatened her with knives.
In mid-2010, DORAN moved to Vietnam without updating his sex offender registration. DORAN became involved with a young woman in Vietnam and in the early morning hours of March 6, 2011, he strangled her and left her body hidden in a closet in the home. Within days DORAN fled Vietnam and returned to the U.S. He traveled between various states, again failing to register as a sex offender. Following his arrest, U.S. prosecutors worked with law enforcement in Vietnam to obtain and present evidence tying DORAN to the murder.
DORAN will be on five years of supervised release following his prison term.
The case was investigated by the U.S. Marshal’s Service. The case was prosecuted by Assistant United States Attorneys Andrew Friedman, Jerrod Patterson and Brian Werner.
Sentencings for September 26 - October 1, 2014Read the Press Release
Judi Bufkin, 53, of Knoxville, Tennessee, was sentenced by Federal District Court Judge Alan B. Johnson on October 1, 2014, for arson of a facility engaged in interstate commerce. Bufkin was arrested in Knoxville, Tennessee. She received 96 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $110,714.85. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
James Pearson Thain, 38, of Utah, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on September 30, 2014, for bank robbery and aiding and abetting. He was arrested in Casper, Wyoming. He received 324 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $1,400.00 special assessment and restitution in the amount of $51,073.66. This case was investigated by the Casper Police Department and the Federal Bureau of Investigation.
Gina Grimm, 45, of Gillette, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on September 30, 2014, for conspiracy to possess with intent to distribute, and to distribute 100 grams or more of methamphetamine. Grimm was arrested in Gillette, Wyoming. She received 78 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment and a $1,900.00 fine. This case was investigated by the U.S. Drug Enforcement Administration.
Latisha Doloris, 27, of Selma, California, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on September 30, 2014, for conspiracy to possess with intent to distribute, and to distribute 50 grams or more of methamphetamine. Doloris was arrested in Selma, California. She received 120 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the U.S. Drug Enforcement Administration.
Dana Christopher Conde, 36, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on September 26, 2014, for being a felon in possession of a firearm and ammunition. Conde was arrested in Casper, Wyoming. He received 30 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and a $400.00 fine. This case was investigated by the Casper Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Preston P. Montoya, 39, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on October 1, 2014, for conspiracy to possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Montoya was arrested in Casper. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and a $250.00 fine. This case was investigated by the U.S. Drug Enforcement Administration and the Wyoming Division of Criminal Investigation.
Rutland Woman Faces Federal Charges for Crack Cocaine DistributionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Qiana Govan (a.k.a. “Missy”), 25, of Rutland, Vermont, and formerly of Brooklyn, New York, has been charged by Indictment with three counts of distributing crack cocaine in Rutland, Vermont in May 2014. Govan pled not guilty before U.S. Magistrate Judge John Conroy and was released on conditions pending trial as she has no prior criminal record.
The United States Attorney emphasizes that the charges contained in the Indictment are merely accusations and that the defendant is presumed innocent unless and until she is proven guilty. If Govan is convicted, she faces a maximum possible term of imprisonment of twenty years.
The United States is represented in this matter by Assistant U.S. Attorney Joseph Perella. Govan is represented by Karen Shingler, Esq. The investigation was conducted by the Vermont State Police Drug Task Force, the Federal Bureau of Investigation, and the Drug Enforcement Administration.
Rock Island Man Sentenced to Life in Prison for Two Armed Bank RobberiesRead the Press Release
Rock Island, Ill. –Deangelo Dixon, 28, of Rock Island, Ill., was sentenced to life in prison without the possibility of parole for committing two armed bank robberies, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. A jury convicted Dixon in March 2014, for the violent armed robberies of Union Federal Savings & Loan in Viola, Ill., and the 1st Community Bank in Sherrard, Ill. Today, U.S. District Judge Sara L. Darrow found, based on Dixon’s two prior robbery convictions in Illinois courts, that Dixon was a recidivist violent offender as defined in the federal 3-Strikes law, and accordingly, a term of life imprisonment was mandated.
At pre-trial hearings and at trial, the government presented evidence that when Dixon entered Union Federal Savings & Loan in Viola, on Nov. 8, 2012, he had been on parole for fewer than two weeks from the Illinois Department of Corrections for aggravated robbery. When Dixon entered the bank, he was dressed in black and his head was covered with a mask. He grabbed a teller by the collar, put a round hard object against her neck, demanded money, and threatened to shoot the teller. Dixon made continuous threats to force tellers to open the bank vault and took $30,994 before fleeing.
The government presented further evidence that on Dec. 10, 2012, Dixon entered the 1st Community Bank in Sherrard, again dressed in black and wearing a mask. He pointed a firearm-like object, which was later determined to be a butane lighter, at tellers, announcing that he wanted money or he would shoot. While yelling continuous threats, Dixon grabbed a teller and forced her to remove $5,710 from teller drawers. As Dixon fled the bank and approached his getaway car, he encountered another teller who had run from the bank as the robbery was underway. Dixon grabbed the teller, tried to force her into his car, and when he was unsuccessful, punched her in the face.
Evidence further established that a Rock Island police officer, who had investigated Dixon in connection with his prior robbery offenses, recognized Dixon’s signature robbery technique and his car after seeing a bulletin circulated by the FBI and police to area law enforcement agencies. FBI agents, police officers, and parole officers of the Illinois Department of Corrections subsequently recovered physical evidence, including clothing and the car, linking Dixon to both robberies. Evidence was also presented that Dixon, unemployed and recently released from prison, spent large sums of money after the robberies.
Assistant U.S. Attorneys Don Allegro and Kirk Schuler prosecuted the case. The charges were investigated by the Federal Bureau of Investigation, the Mercer County Sheriff’s Office, the Viola Police Department, the Rock Island Police Department, and the Illinois Department of Corrections.
# # # #Portland Man, Former Senior Vice President at DAT Solutions Sentenced for Defrauding his own Company out of $1.4 MillionRead the Press Release
PORTLAND, Ore. – David Schrader, 47, of Portland, Oregon, was sentenced yesterday by U.S. District Court Judge Robert E. Jones to 46 months in prison followed by three years of supervised release for the crime of wire fraud. He was also ordered to pay over $1.4 million in restitution to DAT Solutions (formerly Transcore), the victim of his crime, as well as a sizeable money judgment to the government as punishment for his crime. Schrader pleaded guilty to the crime of wire fraud in June of this year.
Between 2003 and 2014, Schrader stole more than $1.4 million from the company while employed as the Senior Vice President of Operations. At the time the company discovered his theft in early 2014, Schrader was one of the highest paid employees at DAT, earning close to half a million dollars in salary and benefits. Schrader accomplished his theft by submitting false expense reports to DAT’s accounting department that either falsified or inflated the amounts for which defendant was actually entitled to receive reimbursement. As part of his fraud, Schrader forged the signature of DAT’s president, fabricated approval emails from the president on his fraudulent reports, and submitted false credit card statements.
Tim Bickmore, the former president of DAT Solutions, testified at the sentencing hearing about the toll that Schrader’s fraud had taken on the company. During many of the years that Schrader’s fraud went undetected, DAT Solutions was dealing with the consequences of the recession affecting all U.S. companies. As a result of the combination of the recession and the significant theft by Schrader, DAT was forced to lay off multiple employees and make adjustments to the salaries and bonuses of other employees, many within the state Oregon, Mr. Bickmore told Judge Jones. David Liner, general counsel for DAT Solutions, also testified at the sentencing, and estimated that the actual loss to DAT’s shareholders—which included employee retirement funds—exceeded $22 million. When handing down Mr. Schrader’s sentence of 46 months in prison, Judge Jones told the defendant that when he was called a crook, a liar, a cheat, and a forger by his former colleagues, he had “earned each of those titles.”
The investigation of this case was conducted by the FBI, and the case was prosecuted by Assistant U.S. Attorneys Michelle Kerin and Katie Lorenz.
Portland Gang Associate Sentenced to 94 Months in Prison after being convicted of unlawfully possessing ammunitionRead the Press Release
The case arose from a shooting where the police were unable to recover a firearmPORTLAND, Ore. – October 2, 2014, Thomas Douglas Smith, 35, of Portland, Oregon, was sentenced to 94 months’ imprisonment after his federal conviction for being a felon in possession of ammunition. When the defendant is released from prison he will serve an additional three years of supervised release.
The defendant’s conviction stemmed from a gang involved shooting in which two people were shot, yet failed to cooperate with law enforcement. On May 22, 2011, the defendant was implicated in shooting two individuals inside the Interstate Bar and Grill in north Portland, Oregon. The shooting stemmed from an initial physical altercation between the defendant and two rival gang members. DNA evidence and video surveillance from inside the bar indicated that the defendant, after being punched by two other individuals, pulled out a gun and started shooting. Two individuals were shot but they would not cooperate with either the police or the District Attorney’s Office. No firearm was recovered from the scene. While investigating the shooting, Portland Police Bureau (PPB) Detectives and Officers with the Gang Enforcement Team recovered two spent .380 caliber shell casings and two fired .380 caliber bullets.
After extensive follow-up work by the PPB Gang Enforcement Team and the Bureau of Alcohol, Tobacco, Firearms and Explosives, on March 21, 2012, the defendant, a felon, was indicted in federal court for being a felon in possession of ammunition that had traveled in interstate commerce. At the time of the crime, the defendant had prior felony convictions for Escape in the Second Degree, Possession of a Controlled Substance, Burglary in the First Degree, Felony Assault in the Fourth Degree, Delivery of a Controlled Substance, and Delivery of a Controlled Substance within 1,000 feet of a School. The defendant pled guilty to the charge on October 30, 2012. The defendant had been released from state prison less than three months prior to the shooting.
This case was investigated by the Portland Police Bureau’s Gang Enforcement Team and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U. S. Attorneys Scott Kerin and Stacie Beckerman, both members of the U.S. Attorney’s Office Gang and Sex Trafficking Prosecution Team.
Port Arthur Woman Charged in SYAM Tax Service SchemeRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 61-year-old Port Arthur, Texas woman has been charged for her role in the SYAM Tax Service Scheme in the Eastern district of Texas, announced U.S. Attorney John M. Bales today.
Diana Broussard McCoy was indicted on Oct. 1, 2014 by a federal grand jury charging her with conspiracy to commit wire fraud.
McCoy joins Shannon Tecoko Mays, 36, of Dallas, who was previously indicted on Feb. 5, 2014, for conspiracy to commit wire fraud. Mays is currently scheduled for trial on Dec. 8, 2014, before U.S. District Judge Ron Clark.
According to prosecutors, an investigation began in August 2012 in response to numerous complaints to state and federal authorities from citizens in Port Arthur, Anahuac, Nacogdoches and Lufkin, Texas regarding income tax returns that were being fraudulently prepared on their behalf. During the investigation, it was discovered that Mays was operating numerous offices across the United States under the name “Syam Tax Services, L.L.C.” and “Baby Momma Tax.” Although the principal office was located in Dallas, Mays also operated or sought to operate satellite offices in numerous other locations, including Fort Worth, Houston, New Orleans, Memphis, Atlanta, Chicago and Los Angeles.
The indictment alleges that Mays employed McCoy as a “recruiter” for Southeast Texas, paying her between $50-100 for every client she successfully brought into Syam Tax. Mays targeted individuals who were generally exempt from having to file income tax returns because they would be less likely to discover a fraudulent tax return had been filed on their behalf. In order to avoid detection, Mays altered the taxpayer’s address and phone numbers on the returns so that any phone calls or correspondence from the IRS would not reach the taxpayer. The scheme also used electronic deposits to ensure paper checks would not be mailed to the taxpayer.
On Aug. 22, 2012, Port Arthur Police and federal investigators executed a search warrant on McCoy’s residence in Port Arthur. Officers recovered numerous boxes of documents that contained the personal information of Port Arthur residents and had previously been faxed to Syam’s Houston office.
For the tax year 2011, Syam Tax filed 4,226 tax returns claiming approximately $3,150,406. If convicted, McCoy faces up to 20 years in federal prison.This case is being investigated by Internal Revenue Service – Criminal Investigation, Federal Bureau of Investigation, the Port Arthur Police Department, the Texas Attorney General’s Office – Consumer Protection Division, and the Treasury Inspector General for Tax Administration. This case is being prosecuted by Assistant U.S. Attorney Baylor Wortham.
It is important to note that a grand jury indictment is not evidence of guilt.
Owner of La Habra Manufacturing Firm Charged with Illegally Manufacturing and Selling Key Component for AR-15-Type RiflesRead the Press Release
LOS ANGELES – A federal grand jury today indicted the owner of an Orange County manufacturing business on a federal charge related to the illegal manufacture and sale of lower receivers for AR-15-type rifles, as well as completed firearms.
The one-count indictment charges Joseph Roh with engaging in the business of manufacturing and dealing in firearms without a license, a felony offense that carries a statutory maximum penalty of five years in federal prison and a $250,000 fine.
The indictment alleges that Roh, 46, of Fullerton, did not have the proper license, but he manufactured and sold hundreds of lower receivers for AR-15-type firearms. In addition to the lower receivers, the indictment alleges that Roh illegally sold complete rifles and pistols.
Through his business, ROHG Industries in La Habra, Roh allegedly started with unfinished lower receivers for AR-15-style firearms. A lower receiver is the frame of a completed firearm that holds the trigger and hammer. An unfinished lower receiver, when machined further, constitutes a firearm. Roh and his employees would finish the lower receivers by machining the devices with a computer-numerically-controlled – or CNC – machine and drill presses that Roh maintained at the La Habra warehouse.
Roh attempted to avoid the licensing requirement by requiring that each customer play a token role in the manufacturing process, which often meant merely pushing a button on a CNC machine, while company employees did the vast majority of the work.
While the sale of unfinished lower receivers is not regulated, the manufacture and sale of completed lower receivers – which are considered firearms under federal law – requires a proper license.
Additionally, Roh would, if the customer wanted, assemble the rest of the firearm by adding an upper receiver, a barrel, and other necessary parts to the lower receiver.
Roh has agreed to surrender tomorrow and be arraigned on the indictment tomorrow afternoon in United States District Court.Release No. 14-133
Operation Left Overs: All 17 Convicted in Drug Trafficking OperationRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today the conviction of the final defendant in Operation Left Overs, a long-running series of prosecutions aimed at dismantling a drug trafficking network in the Baton Rouge area.
HENRY BROWN, a.k.a. Cat, of Baton Rouge, Louisiana, pled guilty this morning before U.S. District Judge James J. Brady to conspiring with others to distribute over 500 grams of cocaine. He was one of 17 defendants who were federally prosecuted in this operation. With today’s guilty plea, all 17 defendants have been convicted.
The other defendants include Barry Cushenberry, Travis Newman, Tyrone Smith, John Sullivan, Coda Stovall, Patrick Scott, Marlon Thompson, Gregory McGee, Jonathan Wright, Demond Spurlock, Dwight K. Wright, Jr., Renan Gilkes, Charleston Jackson, Joseph Morrison, Dwayne Richardson, and Clarence Nero.
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
The operation was handled by U.S. Attorney’s Office, the U.S. Drug Enforcement Administration, and the Baton Rouge City Police Department, with assistance from the East Baton Rouge Sheriff’s Office, the Livingston Parish Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the West Baton Rouge Parish Sheriff’s Office, the Ascension Parish Sheriff’s Office, the Gonzales Police Department, the Louisiana State Police, and the U.S. Marshals Service. These matters were prosecuted by Assistant United States Attorneys Susan Amundson, Cam Le, and Joe Blackwell.
Operation I Spy: Prosecution Against Drug Organization ExpandsRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today the unsealing of another federal grand jury indictment in Operation I Spy, an extensive investigation into a drug trafficking network operating in the Baton Rouge region.
Today’s indictment adds another defendant to the ongoing prosecutions, resulting in a total of 11 defendants. CASEY BASS, age 31, of Ponchatoula, Louisiana, is now charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; possession with the intent to distribute cocaine and cocaine base; and forfeiture. If convicted, he faces a mandatory minimum of five years in prison.
The other ten defendants who were previously indicted are:
• Ronrico Terrell, Sr., also known as “Ronrico Howard,” “Co,” “Shorty,” and “Rico,” age 38, of Baton Rouge, Louisiana, was charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of cocaine; possession with the intent to distribute cocaine and cocaine base; unlawful use of a communications facility; possession of a firearm in furtherance of a drug trafficking crime; and forfeiture.
• Rahkeyah Howard, also known as “Boo,” age 33, of Baton Rouge, Louisiana, was charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of cocaine; possession of a firearm in furtherance of a drug trafficking crime; and forfeiture.
• Howard S. Golphin, age 35, of Pine Grove, Louisiana, was charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; possession with the intent to distribute cocaine and cocaine base; unlawful use of a communications facility; and forfeiture.
• Danniesa Hughes Sanders, age 35, of Pine Grove, Louisiana, was charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; possession with the intent to distribute cocaine and cocaine base; and forfeiture.
• Johntha Rochon Williams, age 32, of Baton Rouge, Louisiana, was charged with distribution of cocaine and cocaine base and forfeiture.
• Bristen LaCour, also known as “Rudy,” age 24, of Baton Rouge, Louisiana, was charged with conspiracy to distribute cocaine base, distribution of cocaine base, and forfeiture. She has since been convicted.
• Troy A. Bell, age 25, of Baton Rouge, Louisiana, was charged with conspiracy to distribute cocaine base, distribution of cocaine base, and forfeiture. He has since been convicted.
• Michael C. Finley, age 43, of Baton Rouge, Louisiana, was charged with distribution of cocaine base and cocaine and forfeiture. He has since been convicted.
• Eric O’Neal Selders, age 42, of Baton Rouge, Louisiana, was charged with conspiracy to distribute and possess with the intent to distribute cocaine, possession with the intent to distribute cocaine, and forfeiture. He has since been convicted.
• Gerard Lathan Smith, age 40, of Baton Rouge, Louisiana, was charged with possession with the intent to distribute 500 grams or more of cocaine and forfeiture.
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
This operation is being handled by the U.S. Attorney’s Office, the U.S. Drug Enforcement Administration, and the Baton Rouge City Police Department, with assistance from the East Baton Rouge Sheriff’s Office, the Livingston Parish Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the West Baton Rouge Parish Sheriff’s Office, the Ascension Parish Sheriff’s Office, the Gonzales Police Department, the Louisiana State Police, and the U.S. Marshals Service. These matters are being prosecuted by Assistant United States Attorney Cam Le.
NOTE: An indictment is an accusation by the Grand Jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through guilty pleas.
Norwalk Man and Two Others Arrested in Heroin StingRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration for New England, today announced the arrests of OMAR ANDRADE, 29, of Norwalk; and JOEL A. ESTRELLA-DISLA, 24, and WILMER ANTONIO GOMEZ-RODRIGUEZ, 28, both of New York, N.Y., on heroin trafficking charges.
As alleged in the criminal complaint, this matter stems from an investigation by the Drug Enforcement Administration and the Norwalk Police Department into suspected cocaine and heroin distribution by ANDRADE. In September 2014, ANDRADE agreed to provide one kilogram of heroin to a DEA Task Force officer acting in an undercover capacity. ANDRADE, ESTRELLA and GOMEZ were arrested on September 30 after they delivered approximately one kilogram of heroin to a pre-arranged location in Norwalk.
The three defendants appeared yesterday before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and were ordered detained.
Each defendant is charged with one count conspiracy to possess with intent to distribute, and to distribute, one kilogram or more of heroin, an offense that carries a mandatory minimum term of imprisonment of 10 years, a maximum term of imprisonment of life, and a fine of up to $10 million.
U.S. Attorney Daly stressed that a criminal complaint is only a charge and is not evidence of guilt. The defendants are entitled to a fair trial at which it is the Government’s burden to prove guilt beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force and the Norwalk Police Department. The Task Force includes personnel from the Norwalk, Stamford, Stratford and Milford Police Departments, and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]North Slope Worker Convicted of Tax CrimesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that James R. Back, 60, of Soldotna, Alaska, was convicted of seven federal tax crimes in U.S. District Court in Anchorage. After three days of trial and one hour of deliberations, the jury of eight women and four men convicted Back on all charges. Back, who is employed by the Alyeska Pipeline Service Company as a pipeline technician at Pump Station One in Prudhoe Bay, was found guilty of filing false 2006, 2007, and 2008 individual income tax returns, and of failure to file his 2009, 2010, 2011, and 2012 returns. Evidence presented at trial showed that Back earned over $125,000 in wages during each of the prosecution years, yet falsely claimed on the 2006, 2007, and 2008 returns that his wages were zero. For the years 2009-2012, Back simply failed to file.
Other evidence at trial established that Back contributed over $140,000 to a retirement plan during the prosecution years, had investment accounts worth hundreds of thousands of dollars, owned real estate in the Kenai Peninsula Borough, and purchased over $400,000 in gold and silver bullion during the prosecution years. Back represented himself at the trial, and argued to the jury that taxation was immoral and unfair, and that he simply refused to submit to it anymore. He argued that the Alaska Permanent Fund Dividend was not taxable, even though he applied for and received it each year. He also argued that there was no evidence that state or federal laws applied to him. Back ignored prior warnings from his employer, his supervisor, the IRS, and a United States Tax Court judge that his arguments were frivolous.
According to witness testimony, Back used a scheme similar to one promoted by Peter Hendrickson of Michigan. Hendrickson operates a website known as “Lost Horizons” and wrote a book called “Cracking the Code” which promotes the “zero wages” tax evasion scheme. According to federal court records, in 1992 Hendrickson was convicted of failure to file tax returns and firebombing a Michigan post office on April 16, 1990, and served 21 months in prison. In 2010, he was sentenced to another 33 months in federal prison for tax crimes, including filing false returns and failure to file.
The defendant was remanded to the custody of the U.S. Marshal pending sentencing. Chief United States District Judge Ralph R. Beistline described Back’s crimes as “flagrant” and said he was “unrepentant.” The judge set sentencing for December 16. Back faces up to three years in prison on each of the three false return counts, and up to a year in prison on each of the four failure to file counts, in addition to significant criminal fines, restitution, and costs of prosecution.
“Using schemes and tactics intended to willfully conceal income from the IRS isn't tax planning; it’s criminal activity,” said Special Agent in Charge Teri Alexander, IRS Criminal Investigation. “There is no secret formula that can eliminate a person’s tax obligations. This verdict reinforces our commitment to every American taxpayer that we will identify and prosecute those who use abusive scams designed to evade the payment of taxes.”
Ms. Loeffler commends the Internal Revenue Service, Criminal Investigation, for the investigation and prosecution of this case.Norfolk Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
NORFOLK, Va. – Kevin D. Jackson, age 35, of Norfolk, Va., pleaded guilty yesterday to receipt of child pornography.
Dana J. Boente, United States Attorney for the Eastern District of Virginia and Royce E. Curtin, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the plea was accepted by United States Magistrate Judge Douglas Miller.
A Norfolk federal grand jury indicted Jackson on June 19, 2014, on four counts relating to child pornography. As a result of his guilty plea, Jackson faces a mandatory minimum sentence of five years of incarceration when he is sentenced on February 2, 2015.
According to the statement of facts filed with the plea agreement, Jackson had sought out images of child pornography via the internet for a number of years. A forensic examination confirmed that Jackson retained on his computer 54 videos and 189 pictures of child pornography.
This case was investigated by the FBI. Assistant United States Attorney Randy Stoker is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
New Orleans Man, Richard Garrett, Sentenced to Ten Years for Drug ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RICHARD GARRETT, age 20, a resident of New Orleans, Louisiana, was sentenced today by U.S. District Judge Edson E. Fallon to a 120-month term of imprisonment and 5 years of supervised release following his guilty plea to Conspiracy to Distribute and Conspiracy to Possess with Intent to Distribute Cocaine Baser. On July 19, 2013, GARRETT was one of 12 defendants charged in a 30-count superseding indictment.
This investigation targeted a violent Drug Trafficking Organization that operated out of the Lincoln Manor area of Kenner. During the course of the investigation, two major sources of supply of “crack” cocaine for the Lincoln Manor are of Kenner, were identified and dismantled along with their distribution network. Most of the street level distributors for this Drug Trafficking Organization were identified as being affiliated with a local gang who called themselves the “Flippa Squad.”
U.S. Attorney Polite praised the work of the Drug Enforcement Administration, the High Intensity Drug Trafficking Area, Kenner Police Department, Homeland Security Investigation, Jefferson Parish Sheriff’s Office, Criminal Intelligence Center, Louisiana State Police, Alcohol, Tobacco, Firearms, and Explosives, U.S. Marshals, U.S. Border Patrol, and the St. John Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney J. Collin Sims is in charge of the prosecution.
Nevada County Man Who Shot Federal, State Officers Charged with Federal CrimesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Brent Douglas Cole, 61, of Nevada County, charging him with assault on a federal officer with a deadly weapon which inflicted bodily injury, assault on a person assisting a federal officer with a deadly weapon which inflicted bodily injury, and discharge of a firearm during and in relation to a crime of violence, United States Attorney Benjamin B. Wagner announced.
According to court documents, on June 14, 2014, a BLM ranger stopped Cole after he observed Cole driving his truck on a closed dirt road on BLM land near the South Yuba River campground. The ranger warned Cole not to drive on the road again and allowed him to leave without issuing him a citation. The ranger continued up the dirt road and discovered a makeshift campsite with two motorcycles — one of which had been reported stolen, and one had expired tags. The ranger requested the CHP’s help to impound the motorcycles. While he and a CHP officer were preparing to move the two motorcycles, Cole arrived at the campsite armed, and an exchange of gunfire took place. Cole wounded the BLM ranger in the left shoulder and the CHP officer in the right, lower leg. Cole was struck several times by law enforcement. Cole, the BLM ranger, and the CHP officer received medical attention, and all will survive their wounds.
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Land Management, the Nevada County Sheriff’s Office, the Nevada County District Attorney’s Office, and the California Highway Patrol. Assistant United States Attorneys Michael D. McCoy and Heiko Coppola are prosecuting the case.
If convicted, Cole faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Miami Residents Plead Guilty in Scheme to File False Tax ReturnsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and J. Scott Dennis, Chief, North Miami Beach Police Department, announce that defendants Michael Virgile, 28, and Shana Sainvil, 26, both of Miami, each pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343. Sentencing is scheduled for December 11, 2014 at 9:30 a.m. At sentencing, the defendants each face up to twenty years in prison.
According to court documents, in 2009, Virgile set up a corporation called Tax Masters & Multi-Services LLC (Tax Masters) listing himself as managing member with Sainvil, and Sainvil applied for two electronic filing identification numbers (EFINs) with the IRS. From early 2010 to late 2011, Virgile caused fraudulent income tax returns in other people’s names to be filed with the IRS primarily using Sainvil’s EFINs. Virgile knowingly included fraudulent income amounts and inapplicable tax credits to cause a greater refund payment. Many of the tax returns were prepared in the names of high school or college students who were not entitled to refunds.
Court documents also state that approximately $1.2 million in fraudulent refunds were deposited into bank accounts controlled by Virgil, and between $200,000 and $400,000 in fraudulent refunds were paid into Sainvil’s accounts. The defendants used the fraudulent refund proceeds for their own personal use and benefit.
Mr. Ferrer commended the investigative efforts of IRS-CI, FBI and North Miami Beach Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican National Sentenced to One Hundred Months for Violating Federal Firearms and Immigration LawsRead the Press Release
ALBUQUERQUE – Luis Anthony Tobanche, 34, a Mexican national illegally present in the United States, was sentenced today to 100 months in federal prison for violating the federal firearms and immigration laws. Tobanche will be deported after completing his prison sentence.
Tobanche was arrested in March 2013, based on a criminal complaint charging him with being a felon in possession of a firearm. Tobanche was indicted in Aug. 2013 and charged with unlawfully possessing firearms and ammunition on March 5, 2013, and unlawful reentry by a previously deported alien. At the time, Tobanche was prohibited from possessing firearms or ammunition because he previously had been convicted of aggravated battery and assault with a deadly weapon, cocaine trafficking and heroin trafficking in 2006, and battery on a peace officer in 2010.
According to court filings, Tobanche unlawfully possessed firearms and ammunition on March 5, 2013, while on the grounds of the Sandia Casino on Sandia Pueblo, N.M. The Casino’s video surveillance cameras recorded a shooting episode in a parking garage during which Tobanche ran towards the elevators after being shot in the neck. Video-footage reveals that Tobanche attempted to fire at the vehicle from which the shot was fired. After the vehicle drove away, Tobanche entered the elevator and handed a silver handgun to another person. Deputies of the Bernalillo County Sheriff’s Office subsequently recovered the firearm from that person.
On June 9, 2014, Tobanche entered a guilty plea and admitted possessing a pistol, a shotgun and ammunition on March 5, 2013, despite his status as a convicted felon. Tobanche also admitted that he previously was deported from the United States in June 2010 and had not obtained authorization to reenter the United States.
This case was investigated by the Albuquerque office of the FBI, the Sandia Pueblo Tribal Police Department and the Bernalillo County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Jon K. Stanford.
The case was 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.
Mexican Man Sentenced in Illegal Reentry CaseRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Gerardo Hernandez-Barragan, 41, of Mexico, who was convicted of illegal reentry after a conviction of an aggravated felony, was sentenced to 12 months in prison by Chief U.S. District Court Judge William M. Skretny.
Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that in January of 2014, Hernandez-Barragan, was arrested following a vehicle stop in Kenmore. The defendant was previously been convicted of distribution of marijuana in South Carolina in 2004.
The sentencing is the culmination of an investigation on the part of United States Customs and Border Protection, under the direction of Randy Howe, Director, Field Operations and the Kenmore Police Department, under the direction of Chief Peter Breitnauer.Methamphetamine Conspirator Sentenced to Ten YearsRead the Press Release
In a federal drug case, Judge William H. Steele imposed a sentence of 121 months imprisonment on Michael Lamar Sweat, 38, of Wilmer, who was convicted of conspiracy to manufacture methamphetamine and possession of a List I chemical with knowledge it would be used to manufacture a controlled substance. Sweat was found guilty of the two charges by a federal jury in June of 2014. Judge Steele ordered that the sentences run concurrently on the two counts. In addition, the judge ordered that Sweat would serve three years’ supervised release after he comes out of prison, and that Sweat pay $200 in special mandatory assessments. The judge further ordered that Sweat undergo testing and treatment for drug abuse during his supervision. No fine was imposed.
The case was investigated by the Mobile County Sheriff’s Office. It was prosecuted in the United States Attorney=s Office by Assistant United States Attorney Gloria Bedwell.
Medina Man Sentenced to 116 Months in Prison for Receiving Child PornRead the Press Release
COLUMBUS, OHIO – Andrew M. Bialek, 24, of Medina, Ohio was sentenced in U.S. District Court to 116 months imprisonment and 20 years supervised release for receiving child pornography.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI) announced the sentence handed down today by U.S. District Judge Edmund A. Sargus.
According to court documents, Bialek placed a hidden camera in rooms in various residences in Ohio, Missouri, Kansas and Indiana. Videos recorded by the camera depicted minor females undressing, showering and using the bathroom. While executing a search warrant, investigators also found 121 images of child pornography on Bialek’s computer.
Bialek pleaded guilty on April 11 to receiving child pornography. He was also sentenced to pay $1,200 in restitution.
This case is being brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney's 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 as well as to identify and rescue victims.
U.S. Attorney Stewart commended the investigation by the FBI Columbus Child Exploitation Task Force, which includes officers from the Westerville Police Department, and Assistant U.S. Attorney Heather Hill and Special Assistant U.S. Attorney Jennifer Rausch, who prosecuted the case.Mattapan Man Sentenced to Nine Years in Child Exploitation CaseRead the Press Release
BOSTON – A Mattapan man was sentenced today for distributing child pornography through the Internet.
Luis Miguel Gonzalez-Buzetta, 22, was sentenced by U.S. District Judge F. Dennis Saylor IV to nine years in prison and seven years of supervised release. Upon release, Gonzalez-Buzetta must register as a sex offender. In June of 2014, Gonzalez-Buzetta pleaded guilty to possession and distribution of child pornography.
Gonzalez-Buzetta extensively traded images of minors engaged in sexually explicit conduct, including images of girls between three and six years of age. On June 28, 2013, law enforcement discovered Gonzalez-Buzetta in possession of more than 6,000 images and almost 400 videos of children being exploited, including the lewd and lascivious posing and sexual penetration of young children. Forensic examination of Gonzalez-Buzetta’s digital devices also revealed that he had collected child pornography for at least a year, traded his collection via several digital platforms, and had attempted to hide his activities from law enforcement.
Additional investigation revealed that, between February 13 and March 11, 2013, Gonzalez-Buzetta was trading child pornography from his residence in Boston with an individual in Oregon. Gonzalez-Buzetta requested images from the individual in Oregon, who sent sexualized images of his five-year-old daughter. Gonzalez-Buzetta later requested that a video be made for him of the child engaging in sexual acts.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston; and Boston Police Commissioner William Evans, made the announcement today. The U.S. Attorney’s Office also wishes to thank the Suffolk County District Attorney’s Office, the United States Secret Service, and the Boston Police Department for their tremendous work on the case and their cooperation with the prosecution. The case was prosecuted by Assistant United States Attorney Stacy Dawson Belf of Ortiz’s Major Crimes Unit.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Martinsburg Man Charged in Heroin Death CaseRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – A West Virginia man has been indicted for allegedly delivering heroin that caused the death of a Berkeley County man.
United States Attorney William J. Ihlenfeld, II, announced that Keith WATSON, age 35 of Martinsburg, has been charged with “Distribution of Heroin” that led to the death of a 37-year old man in April of 2014. Because the delivery of heroin is alleged to have caused the death of another WATSON faces up to life in prison.
“Drug overdoses have become all too common in the Eastern Panhandle, especially those caused by heroin,” said U.S. Attorney Ihlenfeld. “Whenever we can prove who supplied the drugs that caused an overdose or overdose death then we’ll be aggressive in prosecuting those responsible.”
WATSON is in custody at the Eastern Regional Jail and will appear for an arraignment in U.S. Magistrate Court today.
The case was investigated by the Eastern Panhandle Drug and Violent Crimes Task Force and will be prosecuted by Assistant United States Attorney Jarod J. Douglas. The charges contained in the indictment are merely accusations and are not evidence of guilt. The defendant is presumed innocent until and unless proven guilty.
Manager of Club Tropicana in Espanola Sentenced for Conviction on Federal Tax ChargesRead the Press Release
ALBUQUERQUE – Edward Albert Marquez, 69, the manager and operator of Club Tropicana in Espanola, N.M., was sentenced today to three years of probation, including eight months of electronic monitoring, for his conviction on federal tax charges. Marquez also was ordered to pay $297,842 in restitution to the IRS at a rate of $8,000 per month.
Marquez entered a guilty plea on May 1, 2014, to a two-count felony information charging him with making and subscribing a false tax return, and aiding and assisting the presentment of a false tax return. Count 1 charged Marquez with filing a tax return for tax year 2009 in which he reported no income from Club Tropicana when in fact he received income from Club Tropicana resulting in a tax loss to the United States of $32,701. Count 2 charged Marquez with assisting in the preparation of a tax return for Club Tropicana for tax year 2009 which failed to report income and resulted in a tax loss to the United States of $81,040.
In his plea agreement, Marquez admitted filing false tax returns and assisting in the presentation of false tax returns to evade the assessment of federal taxes by the IRS. Marquez admitted that from 2007 to 2009, he “skimmed” money from Club Tropicana, then a bar and package liquor store in Espanola which he operated and managed. Marquez knowingly provided information that falsely underreported the gross income generated by Club Tropicana in the club owner’s tax returns for tax years 2007, 2008 and 2009. Marquez also admitted taking cash from Club Tropicana’s gross receipts, deposited the cash in his personal bank account, and failed to report this income in his 2007, 2008 and 2009 tax returns. The false returns filed by Marquez and which Marquez caused to be filed resulted in an aggregate of $297,842 in tax losses to the United States.
This case was investigated by the Albuquerque and Santa Fe offices of IRS Criminal Investigation and was prosecuted by Assistant U.S. Attorney Stephen R. Kotz.
Man Who Falsely Obtained A Million Dollar Miami Heat Premium Ticket Package Enters Guilty PleaRead 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, announced that Haider Zafar, 36, formerly of Miami-Dade County, has entered a guilty plea, in United States District Court in the Southern District of Ohio, to five counts of wire fraud in connection with an investment scam that yielded millions of dollars from investors and a Miami Heat premium ticket package.
At sentencing, Zafar faces a maximum penalty of 20 years in prison on each wire fraud count.
According to the indictment, Zafar would introduce and falsely portray himself as Haider Zafar Haswhani, a member of a wealthy and influential Pakistani family that operated several hotels, textile plants and oil businesses. He claimed he lived in a penthouse in The Essex house in New York, but also had residences at The Setai, the Mondrian, and 10 Museum Park, across the street from the American Airlines Arena.
Using this false persona, Zafar approached a Miami Heat sales executive and fraudulently obtained a Miami Heat premium three-season ticket package, which cost $1,055,000 with a promise to pay in the near future. Then he used the same scheme in approaching several other investors, promising them various investment opportunities and ultimately fraudulently obtaining in excess of $3,500,000.
At the time of this offense Zafar was living in Miami-Dade County. At the time of Zafar was indicted on these charges, he was incarcerated in Ohio awaiting sentencing on federal fraud charges there. Shortly thereafter, the defendant agreed to plead guilty and the case was transferred to the Southern District of Ohio in order for him to enter a guilty plea and his ultimate sentencing.
Mr. Ferrer commended the investigative efforts of the FBI. The case was prosecuted in the Southern District of Florida by Assistant U.S. Attorney Luis M. Pérez. The United States Attorney for the Southern District of Ohio is Carter M. Stewart, and Assistant U.S. Attorney Dale E. Williams, Jr. is prosecuting the case before Edmund A. Sargus, Jr., United States District Judge, Southern District of Ohio
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.
Man Pleads Not Guilty to Kidnapping and Sex Trafficking ChargesRead the Press Release
RENO, Nev. – John Thomas Abrams, 47, aka Buck, aka David George Garnett, aka John McDonald, aka David Blackwell, appeared before a federal magistrate judge today and pleaded not guilty to charges that he kidnapped a 15-year-old boy and girl in California and transported them to Reno with the intent that the girl engage in sexual activity, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Abrams is charged in a criminal indictment with two counts of kidnapping and one count of transportation of a minor for illegal sexual activity. Abrams was ordered detained pending trial, which was set for Dec. 1, 2014. If convicted, Abrams faces a minimum of 20 years in prison on the kidnapping charges, a minimum of 10 years in prison on the transportation charge, as well as fines of up to $250,000 on each count.According to the allegations contained in the indictment, between about July 12 and July 22, 2012, Abrams kidnapped the girl and the boy in the Sacramento, Calif. area, and held them for ransom, reward, and otherwise. Abrams then transported them to Reno, Nev. with the intent that the girl engage in illegal sexual activity.
“Investigating persons who prey on minors, elderly, and other vulnerable victims, is a top priority of the Justice Department and U.S. Attorney’s Office in Nevada,” said U.S. Attorney Bogden. “We have dedicated more resources than ever to catching and prosecuting these predators, and are working with local, state and federal partners to make sure they face the criminal justice system.”
The investigation is being conducted by the FBI and the Sacramento Police Department. The case is being prosecuted by Assistant United States Attorney Carla Higginbotham.
The 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
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
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."Malden Man Sentenced to Jail for Tax CrimesRead the Press Release
BOSTON – A Malden man was sentenced today for tax crimes involving the filing of tax returns, and concealing income in the name of a deceased relative.
Mark R. Fisette, 54, was sentenced by U.S. District Judge Denise J. Casper to 10 months in prison, one year of supervised release, and ordered to pay $125,780 in restitution to the IRS. In June 2014, Fisette pleaded guilty to tax evasion and four counts of filing false tax documents.
Fisette worked as a freelance photographer for various weekly and daily newspapers, and had not timely filed or paid his income taxes. When state and federal taxing authorities began collection efforts, including seizing a paycheck, Fisette provided the newspaper distributor with the name and Social Security number of a deceased relative for future payments for Fisette’s photography services. Fisette filed false income tax returns and a false financial statement which did not report the income he received in the dead relative’s name.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Sandra S. Bower of Ortiz’s Economic Crimes Unit.MS-13 Gang Member Sentenced to Life for Murdering Two-Year-Old Child and MotherRead the Press Release
Earlier today at the federal courthouse in Central Islip, New York, Adalberto Ariel Guzman, also known as “Gringo,” a member of La Mara Salvatrucha, also known as the MS-13 street gang, was sentenced to multiple terms of life in prison plus 35 years. Guzman was convicted, on September 9, 2013, following a three-week trial, on all counts, including two counts of murder in aid of racketeering, conspiracy to commit murders in aid of racketeering, and related firearms offenses, in connection with the February 5, 2010 slayings of 19-year-old Vanessa Argueta and her two-year-old son Diego Torres in Central Islip, New York.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and Thomas C. Krumpter, Acting Commissioner of the Nassau County Police Department.
“The MS-13 has become infamous for unleashing ruthless violence on the streets of Long Island. However, even for the MS-13, the execution-style murders of a young mother and an innocent child, carried out by Guzman and his fellow gang members, were particularly senseless and cold-blooded crimes,” stated United States Attorney Lynch. “The tenacious investigation and prosecution by the FBI’s Long Island Gang Task Force and my Office, the jury’s guilty verdict last September, and today’s sentence send the unequivocal message that anyone who engages in such brutal and heinous crimes will spend the rest of his life in federal prison.” United States Attorney Lynch expressed her sincere gratitude to the FBI’s Long Island Gang Task Force for its tireless efforts to bring Guzman and his co-conspirators to justice.
At trial, the government proved that Guzman and other MS-13 members, including MS- 13 leader, Heriberto Martinez, also known as “Boxer,” Juan Garcia, also known as “Cruzito,” and Rene Mendez Mejia, also known as “Zorro,” plotted to kill Argueta because they believed she had disrespected the MS-13. On February 4, 2010, when Guzman, Garcia, and Mejia planned to kill Argueta, she was with her son, and the MS-13 members decided to murder him as well. Guzman, Garcia, and Mejia lured Argueta and Torres into a secluded wooded area in Central Islip, where they executed the mother and child, shooting Argueta in the head and chest, and Torres twice in the head. Specifically, the evidence at trial established that Guzman fired the fatal shots to Torres’s head. After they murdered Argueta and Torres, Guzman, Garcia, and Mejia fled to El Salvador, but Guzman was arrested on May 17, 2010, in Miami, Florida, when he attempted to return to the United States from El Salvador. Thereafter, Guzman was indicted and found guilty on all counts relating to the Argueta and Torres murders following a trial in August and September 2013.
Guzman’s three co-conspirators, Martinez, Garcia, and Mejia were also arrested and indicted in connection with the Argueta and Torres murders. Martinez was convicted in March 2013, following a six-week trial, and later sentenced to life in prison, plus 60 years. Mejia pled guilty to the murders and is pending sentence. Garcia, who surrendered to law enforcement authorities in Nicaragua, waived extradition, and was returned to the United States after being placed on the FBI’s Ten Most Wanted list in March 2014, is pending trial in the Eastern District.1
The convictions of Guzman and his codefendants are the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international street gang comprised primarily of immigrants from El Salvador and Honduras. With numerous branches, or “cliques,” the MS-13 is the largest street gang on Long Island. Since 2003, more than 250 MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. More than 150 of those MS-13 members have been convicted on federal racketeering charges. Since 2010 alone, this Office has obtained indictments charging MS-13 members with carrying out more than 20 murders in the Eastern District of New York, and has convicted more than 35 MS-13 members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Department, Rockville Centre Police Department, and Suffolk County Police Department.
The sentence was imposed by United States District Judge Joseph F. Bianco.
The government’s case is being prosecuted by Assistant United States Attorneys John J.
Durham and Raymond A. Tierney.
The Defendant:
ADALBERTO ARIEL GUZMAN, also known as “Gringo”
Central Islip, New York
Age: 22
__________________________________________________________________________
1 The charges contained in the indictment against Garcia are merely allegations, and he is
presumed innocent unless and until proven guilty.
Louisiana Army National Guard Soldiers Charged with Conspiracy to Commit Theft of Government Funds<br /> and Identity TheftRead the Press Release
U.S. Attorney Kenneth A. Polite announced that today, a federal grand jury indicted PABLO E. PAZ, 45, a resident of New Orleans, Louisiana, and RAMON E. MADRID, 29, a resident of Kenner, Louisiana, for conspiracy to commit theft of government funds and identity theft.
According to court documents, PAZ was a recruiter for the Louisiana Army National Guard. In this capacity, he obtained personally identifiable information (PII), such as names, dates of birth and social security numbers, from potential soldiers that came to the recruiting station for the purpose of becoming a soldier. PAZ provided the PII of potential soldiers to MADRID without the knowledge or consent of the soldiers, to obtain Guard Recruiter Assistance Program (G-RAP) incentive payments to which they were not entitled. MADRID received approximately $30,000 in fraudulently obtained recruitment incentive payments, and provided a portion of the funds to PAZ.
If convicted, PAZ and MADRID face a maximum term of five years imprisonment, a fine of up to $250,000, and up to three years of supervised release.
U.S. Attorney Polite reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Army Criminal Investigation Division Command and the Defense Criminal Investigative Service in investigating this matter. Public Integrity Unit Chief and Assistant United States Attorney Tracey N. Knight is in charge of the prosecution.
(Download Indictment )
Long Island Doctor Sentenced to Eight Years of Imprisonment for Conspiracy to Distribute Oxycodone and Distribution of OxycodoneRead the Press Release
William Conway, a medical doctor who formerly ran a practice in Baldwin, New York, was sentenced today to a term of eight years’ imprisonment for conspiring to illegally distribute the highly-addictive narcotic oxycodone, to be followed by three years of supervised release. The sentence was pronounced by United States District Judge Leonard D. Wexler, who ruled last month that the defendant was esponsible for the overdose death of a patient to whom he prescribed oxycodone for no legitimate medical purpose.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; James J. Hunt, Acting Special Agent-in-Charge, Drug nforcement Administration (DEA), New York, and Thomas C. Krumpter, Acting Commissioner, Nassau County Police Department (NCPD).
Conway was arrested in June 2012 following a state and federal investigation into the defendant’s practice of issuing oxycodone prescriptions at an average of 163 per month between 2009 and 2011 -- a rate that equated to the distribution of over 782,000 pills. Conway’s office files revealed only cursory, incomplete examinations of patients, overlapping prescriptions to the same patients, and as one government witness put it, no effort to “try and fix the patient’s condition rather than perpetuate the use of the narcotics.”
During a hearing before Judge Wexler in May, the government presented evidence that the defendant prescribed large quantities of oxycodone to a patient, Giovanni Manzella, for no legitimate medical purpose and that the illegal distribution caused Manzella’s overdose death on April 23, 2011. Records showed that Conway issued Manzella five
oxycodone prescriptions, totaling over 800 pills, over a six month period with little or no examination or diagnostic testing, such as an MRI, or any effort to ensure that the patient was not abusing the narcotic. Evidence also showed that Conway prescribed 180 oxycodone pills to Manzella on April 21, 2011, and then 24 hours later, prescribed Manzella an additional 270oxycodone pills without performing any medical evaluation. Manzella died the next day.
In an August 2014 writen opinion, Judge Wexler noted, “Incredibly, Dr. Conway wants this Court to find that, when Manzella was under his medical supervision, somehow he was practicing medicine and prescribing oxycodone for a legitimate medical purpose.” Instead, Judge Wexler found that the government’s evidence “amply demonstrates that he prescribed oxycodone to Manzella for no legitimate medical purpose, and that Manzella died as a result of using the oxycodone prescribed by him.”
In announcing today’s sentence, United States Attorney Lynch stated, “Instead of using his skills as a physician to ‘do no harm,’ Conway perpetuated pain and suffering, inundating our communities with a highly addictive narcotic and causing the death of a young man struggling with substance abuse. This case should serve as a warning that health care professionals engaged in such conduct face not merely the loss of their privilege to practice medicine, but their liberty as well.” Ms. Lynch extended her grateful appreciation to each of the law enforcement agencies for their assistance in this case.
Oxycodone is a scheduled controlled substance that may be dispensed by medical professionals only for a legitimate medical purpose in the usual course of a doctor’s professional practice. It is a powerful and highly addictive drug and is increasingly abused because of its potency when crushed into a powder and ingested, leading to a heroin like euphoria.
Conway’s conviction is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative. In January 2012, this Office and the DEA, in conjunction with the five District Attorneys in this jurisdiction, the Nassau and Suffolk County Police Departments, the New York City Police Department, and New York State Police, along with other key federal, state, and local government partners, launched the Prescription Drug Initiative to mount a comprehensive response to what the United States Department of Health and Human Services’ Center for Disease Control and Prevention has called an epidemic increase in the abuse of so-called opioid analgesics. So far, the Prescription Drug Initiative has brought over 160 federal and local criminal prosecutions, including the prosecution of 15 health care professionals, taken civil
enforcement actions against a hospital, a pharmacy, and a pharmacy chain, removed prescription authority from numerous rogue doctors, and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The government’s case was prosecuted by Assistant United States Attorney Michael P. Canty.
The Defendant:
Name: William Conway
Age: 71
Residence: Baldwin, NY
Lincoln County Man Convicted of Tax ChargesRead the Press Release
St. Louis, MO – PETER GIAMBALVO was convicted of obstructing the internal revenue laws and filing false tax returns for the years 2003-2010. The three-day trial was held before United States District Judge Rodney W. Sippel.
According to testimony presented at trial, Giambalvo was an employee of The Boeing Company and had not filed income tax returns for the years 2000-2009. After being contacted by an IRS Revenue Officer in late 2010, Giambalvo agreed to file income tax returns for those years. However, in January 2011, Giambalvo mailed tax returns to the Revenue Officer for years 2000-2010. Each of these returns stated that the amount of wages and other items of income which he received during those years was zero. However, for the years 2003-2010, there was evidence that Giambalvo received wages from The Boeing Company in amounts substantially in excess of the zero amounts reported on the returns. Giambalvo also included a letter to the Revenue Officer which claimed that he was a "nontaxpayer," and was not required to pay taxes because he worked in the private sector and not for the government.
"The law is clear on the issue of taxable income and who is required to file and pay taxes: There is no gray area on the subject," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. "Today’s conviction shows that those who willfully defy the tax laws, regardless of their motivations or convictions, will be held accountable.".
Giambalvo, Hawk Point, MO, was convicted of one felony count of interfering with the administration of the Internal Revenue laws, and eight felony counts of filing false tax returns. Sentencing has been set for January 2, 2015. After the jury verdict, Judge Sippel ordered that Giambalvo be held in custody until sentencing.
Each count carries a maximum penalty of three years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by IRS Criminal Investigation. Assistant United States Attorney Steven Muchnick is handling the case for the U.S. Attorney's Office.
Leader of Hudson County, N.J., Set of Violent International Street Gang Admits Murder ConspiracyRead the Press Release
NEWARK, N.J. – A member of the international criminal street gang Mara Salvatrucha (also known as “MS” or “MS-13”), today admitted trying to kill a rival gang member, U.S. Attorney Paul J. Fishman announced.
Marvin Garcia-Cruz, a/k/a “Buffalo,” 31, of West New York, New Jersey, pleaded guilty today before U.S. District Court Judge Stanley R. Chesler to one count of conspiring to commit murder in aid of racketeering and one count of conspiring to possess firearms in furtherance of a crime of violence. Garcia-Cruz was previously indicted in July 2014 with numerous other top-ranking members of MS-13 for various racketeering crimes.
According to documents filed in this case and statements made in court:
Garcia-Cruz admitted to being the leader of an MS-13 set, or “clique,” operating in Hudson County, known as “Pinos Locos Salvatrucha.” In November 2013, leaders of several MS-13 cliques operating in northern New Jersey hatched a plot to murder rival gang members. Before carrying out the plot, these local gang leaders sought authorization from some of the highest-ranking members in the gang’s national and international leadership – including Joel Antonio Cortez, a/k/a “Pee Wee,” who served as a top deputy to Jose Juan Rodriguez-Juarez, a/k/a “Sacerdote,” the leader of Mara Salvatrucha in the United States. Law enforcement learned of the murder plot during the course of the investigation and arrested gang members, including Garcia-Cruz, before it could be carried out.
The murder conspiracy count to which Garcia-Cruz pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine. The firearm conspiracy count carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 21, 2015.
Aside from Garcia-Cruz, eight defendants – including Cortez and Rodriguez-Juarez – remain in federal custody, awaiting trial on the indictment pending before Judge Chesler.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s guilty plea. The investigation involved multiple FBI Field Offices, with substantial assistance provided by the FBI Field Office in Los Angeles. Fishman also thanked the Hudson County Prosecutor’s Office, under the direction of Acting Prosecutor Gaetano T. Gregory, and the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Grace Park, for their work on this case. He also acknowledged the U.S. Attorney’s Office for the Central District of California for its assistance in the ongoing investigation.
The government is represented by Assistant U.S. Attorneys James M. Donnelly and Andrew J. Bruck of the U.S Attorney’s Office Organized Crime/Gangs Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the other defendants are presumed innocent unless and until proven guilty.
14-355
Defense Counsel: Pierre Eloi Esq., Orange, New Jersey
Rodriguez-Juarez, Jose Juan et al. Indictment
Lake Charles Man Pleads Guilty to Charge in Terrorism HoaxRead the Press Release
LAKE CHARLES, La. –United States Attorney Stephanie A. Finley announced today that a Lake Charles man pleaded guilty to a charge that he lied to federal agents in order to blame his wife for a fake terror plot.
Monte Henry Hurley, 54, of Lake Charles, pleaded guilty before U.S. District Judge Patricia Minaldi, to one count of making false statements to FBI agents. According to evidence at the guilty plea, Hurley falsely reported on October 18, 2013 that his estranged wife had forwarded a letter to him that contained a white powdery substance leaving law enforcement authorities to believe it may be anthrax, a biological weapon. Authorities quarantined Hurley and responding officers, and engaged in extensive response protocols for anthrax, which included evacuation and testing of the material. About a week later, Hurley claimed responsibility for the letter and powder admitting that he lied to authorities in order to frame his estranged wife.
Hurley faces up to five years in prison, up to three years of supervised release, and a $250,000 fine. A sentencing date of January 8, 2015, was set.
The members of the Joint Terrorism Task Force, which is composed of the FBI, U.S. Border Patrol, Louisiana State Police, Calcasieu Parish Sheriff’s Office, and the Lake Charles Fire Department, investigated the case. Assistant U.S. Attorney Myers P. Namie is prosecuting the case.
Jury Convicts Charlotte Man of Federal Racketeering in Connection with Operation Wax HouseRead the Press Release
CHARLOTTE, N.C. – On Wednesday, October 1, 2014, a federal jury returned a guilty verdict against Kurosh Mehr for his role in a $75 million racketeering conspiracy, announced the U.S. Attorney’s Office for the Western District of North Carolina. This conviction is the latest in Operation Wax House, an investigation which began in 2007 and has netted 91 defendants to date, of which 88 have pleaded guilty or have been convicted at trial. Mehr, 53, of Charlotte was convicted of racketeering conspiracy, mortgage fraud, and money laundering conspiracy.
U.S. Attorney Tompkins is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
The federal criminal trial began on Monday, September 29, 2014 before Senior U.S. District Judge Graham Mullen. According to evidence introduced at trial, the enterprise, which operated from 2005 to 2012, engaged in an extensive pattern of racketeering activities, which included investment or securities fraud, mortgage fraud in the form of wire fraud and bank fraud, and money laundering.
According to trial evidence, Mehr was a promoter and buyer in the enterprise’s mortgage fraud operations. The evidence at trial showed that initially Mehr served as a promoter, providing tens of thousands of dollars as down payment money for the enterprise’s purchase of luxury homes utilizing several straw buyers. In exchange, trial evidence showed that the conspiracy would divide up the loan funds that were supposed to be the seller’s proceeds, paying themselves back the down payment money they fronted plus a 10% kickback following the closing of the loan. According to trial evidence, Mehr later agreed to serve as a buyer for the enterprise in a flip transaction, in which he bought a house from a straw buyer for a price that was approximately $500,000 over the price the enterprise had purchased the house for months earlier. The evidence showed that this $500,000 difference was used to cover the down payment (which was netted from the seller’s proceeds) and to pay kickbacks to members of the enterprise, including more than $300,000 which was transferred to Mehr and his coconspirators. Following the jury’s conviction, the defendant was remanded to custody. The racketeering conspiracy charge carries a maximum term of 20 years in prison and a $250,000 fine or twice the gross profits or other proceeds. The money laundering conspiracy charge carries a maximum term of 20 years in prison and a $500,000 fine or twice the amount of criminally derived proceeds. The mortgage fraud conspiracy charge carries a maximum prison term 30 years in prison and $1 million fine. A sentencing date for the defendant has not been set yet.
Three defendants have charges pending in the case, two of which, including one of the leaders, are international fugitives. Each remaining defendant and his or her status are listed below:
• Ramin Amini, 45, of Tehran, Iran, is charged with racketeering conspiracy, mortgage fraud and money laundering conspiracy. Role: Leader and promoter in the scheme. Status: International fugitive.
• John Wayne Perry, Jr., 32, of Charlotte, is charged with racketeering conspiracy and money laundering conspiracy. Role: Promoter. Status: On bond; Scheduled for trial after September 2014.
• Nazeere Saddig, 41, formerly of Charlotte, is charged with racketeering conspiracy and mortgage fraud. Role: Promoter and buyer. Status: International fugitive.Operation Wax House in the Western District of North Carolina is being handled by the Charlotte Division of the FBI and the Criminal Division of the IRS for the Financial Fraud Enforcement Task Force, along with the Securities Division of the North Carolina Secretary of State. The case was tried by Assistant United States Attorneys Maria K. Vento and Jenny Grus Sugar.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Jeremiah Santos Isezaki Sentenced to 57 Months in PrisonRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that Defendant JEREMIAH SANTOS ISEZAKI, age 30, was sentenced on October 1, 2014, in the District Court of Guam by Chief Judge Frances Tydingco-Gatewood.
Defendant Isezaki was sentenced to 57 months in prison with credit for time served. He will be placed on three years supervised release when he gets out of jail. Isezaki was assessed a $100 special assessment fee and ordered to perform 25 hours of community service.
On January 30, 2012, a Guam Police Department (GPD) officer attempted to pull over Isezaki for a traffic violation. Defendant Isezaki kept going which led to a high speed chase reaching speeds of up to 100 miles an hour. Defendant eventually ran off the road while driving his motorcycle and GPD officers arrested him. The officers recovered a Colt .45 1911 pistol. Defendant Isezaki was convicted by a jury on June 12, 2012.
Credit for the investigation is given to GPD together with and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case was handled by Assistant U.S. Attorney Clyde Lemons.