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29 September 2014
Former Prison Employee Charged with Providing Contraband to Allenwood InmateRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania, announced today that charges have been filed against Megan Shellenberger, currently a resident of Oklahoma City, Oklahoma.
According to United States Attorney Peter Smith, Shellenberger, age 30, is charged in a one-count Information with providing contraband – cell phones – in December 2013 to an inmate serving a sentence at the Federal Correctional Institution, Allenwood Federal Penitentiary, White Deer, Pennsylvania, while Shellenberger was employed there. Shellenberger has resigned from the Bureau of Prisons.
The government also filed a plea agreement in the case which is subject to the approval of the Court.
The investigation was conducted by the Bureau of Prisons, Office of Inspector General, and Bureau of Prisons Special Investigation Service. Assistant United States Attorney Wayne P. Samuelson is assigned to prosecute the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statues and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is one year imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former Police Officer and School Administrator Charged with Violating Federal Child Sex Abuse LawsOther School Officials Charged with Failing to Report the AbuseRead the Press Release
LOUISVILLE, Ky. – A federal grand jury charged a Grayson County, Kentucky, man with violating federal laws designed to protect children from sexual abuse as well as threatening/intimidating a witness. The grand jury also charged several other school officials with failing to report the abuse, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Stephen E. Miller, age 44, previously worked as a police officer in Leitchfield, Kentucky. He resigned the position following complaints of inappropriate sexual activity toward two women. Miller then began working at Bluegrass Challenge Academy, a residential, educational program run by the Kentucky National Guard, located on Fort Knox Military Base. Miller had supervisory authority over the Academy students. He is charged with engaging in sexual contact with three students, including an incident of aggravated sexual abuse with one of the three. The incidents occurred between February and August, 2013. The Indictment also charges Miller with attempting to threaten or intimidate the third student to prevent her from reporting the matter to law enforcement.
Additionally, the grand jury charged school officials, John W. Smith, Leroy Burgess, Jr., Kemmye S. Graves, Rolanshia Windom, Rita Carthen, and Gabriel Onusko with failing to report the first incident of abuse to law enforcement officials, as required by federal law.
If convicted, Miller faces a maximum sentence of life in prison, a fine of up to $1,250,000 and at least five years of supervised release. The remaining defendants, if convicted, face maximum sentences of one year in prison, a fine of up to $100,000 and up to one year of supervised release. Miller is being held in the custody of the United States Marshals Service.
Assistant United States Attorneys Jo E. Lawless and Stephanie Zimdahl are prosecuting the case. The Federal Bureau of Investigation (FBI) with assistance from the Army Criminal Investigation Division conducted the investigation.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Former Nashville Resident Sentenced for $1.2 Million Dollar Bank Fraud and Filing False Income Tax ReturnsRead the Press Release
David A. Billington, 51, formerly of Nashville and currently residing in Murray, Kentucky, was sentenced on September 22, 2014, to serve 51 months in prison for bank fraud and filing false tax returns, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Billington was also ordered to pay restitution and the taxes that he owed, when released from prison.
“Fraudulent conduct that impacts federally insured banks will continue to be aggressively investigated by federal law enforcement agencies and prosecuted by this office” said U.S. Attorney David Rivera. “When criminals willfully fail to report their ill-gotten gains, as the law requires, they will also face additional tax charges and stiff penalties.”
Billington pleaded guilty in April 2014 to embezzling $1.2 million from his former employer, Revolution Pictures, where he worked as a contract bookkeeper. Billington admitted to Chief Judge Joseph Haynes that from 2006 to 2011, he secretly wrote a series of company checks made payable to him; altered company books and records to conceal the fraud; and thereby fraudulently obtained company funds that totaled $1.2 million.
Billington also admitted that he failed to disclose the embezzled funds in tax returns he filed for tax years 2006 through 2010, which resulted in an underpayment of almost $280,000 in income taxes.
"This sentence is the culmination of the tireless efforts of the FBI and our law enforcement partners," said A. Todd McCall, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation. "Their hard work once again proves that those who violate trust, fiduciary duty, and the law, for personnel gain, will be brought to justice and will pay the price of their crimes."
“No matter what the source of income, all income is taxable,” said Christopher A. Henry, Special Agent in Charge of the Nashville Field Office of the IRS – Criminal Investigation. “The prosecution of individuals who intentionally conceal income and evade taxes is a vital element of the IRS' enforcement strategy. We are pleased with the successful resolution of this investigation due to the cooperative efforts of our law enforcement partners.”
The case was investigated the FBI and the IRS-Criminal Investigation. The United States was represented by Assistant U.S. Attorney Hilliard Hester.
Former City of Marietta Employees and Landlords Sentenced for Section 8 Housing FraudRead the Press Release
ATLANTA - Shantel Bowens, Debbie Bailey, and Babatunde “Babs” Abass have been sentenced for stealing funds from the federal Housing Choice Voucher Program, known as “Section 8,” which provides rental assistance to low-income families.
“By stealing funds from the Section 8 program these defendants deprived needy families of suitable, safe housing,” said United States Attorney Sally Quillian Yates. “We will continue to aggressively prosecute government program fraud and criminals who steal from those most in need.”
Nadine E. Gurley, Special Agent in Charge for the U. S. Department of Housing and Urban Development, Office of Inspector General said: “HUD’s Office of Inspector General is dedicated to protecting taxpayers’ dollars and ensuring HUD programs are free from fraud, waste and abuse. This partnership between the U.S. Attorney’s Office and HUD’s Office of Inspector General has helped demonstrate to our recipients that those who seek to unlawfully profit by defrauding HUD programs will be vigorously prosecuted.”
According to United States Attorney Yates, the charges and other information presented in court: Bowens and Bailey worked for the City of Marietta’s Housing Choice Voucher Program, which oversees tenant and landlord participation in the Section 8 program. HUD provides the program with over $4 million per year in Section 8 funding. Abass and a fourth defendant, Tunji “Chris” Imoukhuede, were enrolled as landlords in the program.
In 2011, Bowens began identifying former Section 8 tenants, and reactivating their accounts, which had been closed. In particular, Bowens and Bailey selected tenants who were eligible for the largest Section 8 payments, based upon their employment and family size. Bowens altered computer records to link these tenants to Abass and Imoukhuede. The falsified records then indicated that the former tenants were now residing in properties owned by Abass and Imoukhuede. As a result, the two landlords began receiving fraudulent Section 8 payments. Abass and Imoukhuede kept 40% of the funds for themselves, and withdrew the remaining 60% in cash. In turn, they gave the cash to Bailey, who split it with Bowens.
During the scheme, which took place from January 2011 through June 2013, the four defendants obtained over $230,000 as a result of their fraudulent actions. In addition, from January 2010 through June 2013, Bowens lived rent-free in Section 8 housing under false pretenses. She falsified computer records so that a rental subsidy would be paid monthly to her own landlord, purportedly on behalf of a former tenant in the program. Over $40,000 in Section 8 funds went to Bowens’ own housing.
Bowens, 43, of Atlanta, Ga., has been sentenced to two years and two months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $275,871. Bowens was convicted on these charges on July 17, 2014, after she pleaded guilty.
Bailey, 41, of Rome, Ga., was sentenced on August 18, 2014, to one year and two months in prison to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $234,977. She pleaded guilty to these charges on May 27, 2014.
Abass, 48, of Mableton, Ga., was sentenced to ten months in prison to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $80,349. He was convicted on these charges on June 11, 2014, after he pleaded guilty.
Tunji Imoukhuede was arraigned on September 17, 2014.
This case was investigated by the U.S. Department of Housing and Urban Development, the City of Marietta, and the Marietta Police Department.
Assistant United States Attorney Shanya J. Dingle prosecuted the case.
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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Belmont Resident Charged with $6 Million Investment Fraud SchemeRead the Press Release
BOSTON – A former Belmont resident was arrested today in El Paso, Texas after being charged in U.S. District Court in Boston with defrauding at least 15 investors of more than $6 million.
John William Cranney, aka Jack Cranney, 73, was charged in an indictment unsealed today with four counts of wire fraud, 16 counts of mail fraud, and three counts of money laundering.
The indictment alleges that Cranney solicited money from people with whom he had personal and business relationships, represented that the money would be invested on their behalf, and guaranteed them a specific rate of return. In fact, Cranney did not invest the money, but instead spent it on personal and business expenses and to repay other victims and creditors.
According to the indictment, Cranney established shell investment entities called Cranney Capital I and Cranney Capital III and directed investors to send their money to those entities. Cranney led investors to believe that their funds were being invested through those entities, when, in fact, Cranney caused all funds deposited to those accounts to be transferred promptly to other accounts for his own use. Cranney also established the Cranney Capital I LLC Employee Stock Ownership Trust (ESOT), and represented to prospective investors that they could “roll over” their money held in IRA and 401(k) retirement accounts to the ESOT without paying withdrawal taxes and penalties, even though Cranney knew that none of the investors were employees of his or of the Cranney Capital I LLC. Cranney also sent some investors reports which purported to reflect the amounts those investors had earned and the total balance in their accounts, when in fact no such amounts had been earned and the stated balances did not exist in any account because Cranney had already spent all of the funds.
The maximum sentence under the mail and wire fraud statutes is 20 years in prison, three years of supervised release and a $250,000 fine or twice the gross gain/loss, whichever is greater. The maximum sentence under the money laundering statute is 10 years in prison, three years of supervised release and a $250,000 fine or twice the amount of the criminally derived property in the transaction, whichever is greater. 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; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Susan A. Hensley, Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, made the announcement today. The U.S. Attorney’s Office also received assistance in its investigation from the Office of the Secretary of State of the Commonwealth of Massachusetts and his Securities Division, as well as the U.S. Trustee’s Office in Boston. The case is being prosecuted by Mark J. Balthazard of Ortiz’s Economic Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Acquaintance of Well-Known Navy Seal Guilty of Illegally Possessing A FirearmRead the Press Release
HOUSTON - Daniel Lee Marshall, 45, of Conroe, has entered a plea of guilty to possession of a firearm by a convicted felon, announced U.S. Attorney Kenneth Magidson.
The investigation into Marshall began after authorities received a complaint from former U.S. Navy Seal Marcus Luttrell regarding a possible stolen firearm. Marshall had ingratiated himself to Luttrell’s family by falsely posing as a decorated former special forces operator. Lutrell later discovered one of his pistols was missing and believed Marshall was responsible.
That investigation led to the discovery that Marshall had a prior felony conviction in Brazoria County for forgery and is, therefore, prohibited from possessing a firearm.
On April 6, 2014, law enforcement executed a search warrant at Marshall’s residence in Conroe, at which time he was taken into custody. Upon that arrest, authorities discovered several firearms. Today, Marshall admitted he illegally possessed a .223 caliber semi-automatic rifle and a Mossberg, 12 gauge semi-automatic shotgun.
U.S. District Judge Gray H. Miller, who accepted the guilty plea, has set sentencing for Dec. 18, 2014. At that time, he faces up to 10 years in federal prison and a possible $250,000 fine. He was permitted to remain on bond pending that hearing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated with the assistance of the Walker County Sheriff’s Department. Assistant U.S. Attorneys John Jocher and Jim McAlister are prosecuting.
Foreclosure Rescue Scheme Defendants SentencedRead the Press Release
SACRAMENTO, Calif. — Four defendants involved in a scheme that victimized distressed homeowners were sentenced today, United States Attorney Benjamin B. Wagner announced.
United States District Judge William B. Shubb sentenced Jewel Hinkles, aka Cydney Sanchez, 64, of Los Angeles, to five years in prison; Jesse Wheeler, 37, of Roseville, to three years in prison, Cynthia Corn, 61, of Oakland, to two and a half years in prison and Brent Medearis, 48, of Modesto, to one year and 10 months in prison.
Michael P. Stephens, Acting Inspector General, Federal Housing Finance Agency Office of Inspector General stated: “It is particularly vile for fraudsters to target and take advantage of individuals who are scared, vulnerable and simply trying to protect their families and save their home. Jewel Hinkles, Jesse Wheeler, Cynthia Corn, and Brent Medearis will now have time to reflect on their actions. We will continue to pursue any individual who perpetrates such fraud, and we are proud to have worked with our law enforcement partners on this case.”
“This scheme preyed upon desperate, financially distressed homeowners who were at imminent risk of losing their homes to foreclosure,” said Supervisory Special Agent Todd Irinaga of the Sacramento FBI’s Modesto resident agency. “This demonstrates the success of a multi-agency investigation, and we are thankful for the collaborative efforts of our San Joaquin Valley Mortgage Fraud Task Force partners. The FBI will always work with its law enforcement partners to identify and investigate individuals who flout laws and exploit vulnerable citizens for personal gain.”
According to court documents, Hinkles was the founder and general manager of Horizon Property Holdings LLC, in Beverly Hills. From 2008 through 2010, Hinkles offered a service called “Save My Home” or “Homesaver” that promised to rescue financially distressed homeowners from foreclosure and reduce the principal on homeowners’ mortgages. Horizon offered its program directly to clients and also through several layers of “affiliates,” who promoted and sold the program to clients, mostly in Northern California.
The defendants told homeowners they would save their residences from foreclosure by arranging for investors to purchase their existing mortgage at a discounted price, thereby reducing the homeowner’s principal and monthly mortgage payment. To prevent foreclosure, the defendants filed fraudulent deeds transferring an interest in the homeowner’s property to a fictitious entity called Pacifica Group 49/II. In many instances, the defendants also filed fraudulent petitions in bankruptcy court, often naming both the homeowner and Pacifica Group 49/II as the debtor. The purpose of these petitions was to invoke the automatic provisions of federal bankruptcy law that bring to an immediate halt any foreclosure actions against a debtor’s property.
Because the fraudulent deeds and bankruptcy petitions delayed foreclosure proceedings, the defendants were able to pretend that they were providing a legitimate service and continue to collect fees from defrauded homeowners. To enroll in the Save My Home program, clients were required to pay an initial payment of approximately $3,500 and monthly fees up to $1,500. The Homesaver program required clients to pay an initial payment ranging from $1,750 to $6,500 and monthly fees up to $850. In total, the scheme collected at least $4.9 million from more than 1,000 homeowners, including homeowners whose mortgages were owned by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). However, according to court documents, the defendants never arranged for the purchase of a single mortgage from any of the clients’ lenders and never negotiated a single mortgage principal reduction for any of Horizon’s clients.
This case was the product of an investigation by the Federal Housing Finance Agency, Office of Inspector General; the United States Postal Inspection Service; the Federal Bureau of Investigation; and the Stanislaus County District Attorney’s Office. Assistant United States Attorneys Lee S. Bickley and Matthew D. Segal prosecuted the case.Federal Grand Jury Indicts Former Funeral Home Owner Rachel HardyRead the Press Release
DALLAS, Texas — A federal grand jury returned a four-count indictment last week charging Rachel Hardy, 35, with Food Stamp Benefit Fraud, two counts of Theft of Federal Public Money, and Theft of Educational Funds announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Hardy self-surrendered today.
According to the indictment, Hardy failed to disclose her household composition and ownership of two businesses that generated income and as a result she obtained benefits from multiple government programs.
Count one of the indictment alleges that beginning in or around April 8, 2010, through July 31, 2012, Hardy obtained from the Department of Agriculture Food Stamp Program and its successor, SNAP, benefits having a value in excess of $5,000. Count two of the indictment alleges during the same time period Hardy received Medicaid benefits having a value in excess of $1,000.00.
Beginning in or around June 28, 2010 and continuing through May 22, 2013 the indictment alleges in count three Hardy received funds, assets, and property provided or insured under the Federal Pell Grant Program and the William D. Ford Federal Direct Loan Program, having a value in excess of $200.
Count four of the indictment alleges that beginning in or around November 2, 2010 and continuing through December 14, 2011 Hardy received housing subsidies in excess of $1,000.00.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. The maximum statutory penalty for the offenses charged is 20 years in federal prison and a $250,000 fine.
The Texas Health & Human Services Commission, OIG; U.S. Department of HUD, OIG; Department of Agriculture, OIG; and U.S. Department of Education, OIG are investigating.
Assistant U.S. Attorney Aaron Wiley is in charge of the prosecution.
Escondido Resident Pleads Guilty to Bulk Cash SmugglingRead the Press Release
FRESNO, Calif. — Martin Rojas-Cuamba (Rojas), 46, of Escondido, pleaded guilty today to bulk cash smuggling in Tulare, Kern, and San Diego Counties, U.S. Attorney Benjamin B. Wagner announced.
According to the plea agreement, Rojas smuggled $88,950 in cash from the United States to Mexico in order to evade the currency transaction reporting requirement. According to court documents, Rojas was connected to several marijuana cultivation operations on agricultural lands in Terra Bella and Bakersfield from which he profited. During a search of his residence in Escondido, law enforcement officers seized $53,750 in cash, which Rojas has agreed to forfeit.
Rojas is scheduled for sentencing on December 15, 2014, before U.S. District Judge Lawrence J. O’Neill. Rojas faces a maximum prison term of five years and a fine of up to $250,000. 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.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the U.S. Drug Enforcement Administration, the Sheriff’s offices of Tulare, Kern, Ventura, and San Luis Obispo Counties, and the Escondido Police Department. Assistant United States Attorney Karen Escobar is prosecuting the case.
Emporia Man Sentenced After Arrest with 35 Pounds of MarijuanaRead the Press Release
WICHITA, KAN. An Emporia man who was arrested after sheriff’s officers found 35 pounds of marijuana and 21 firearms in his home was sentenced Monday to 21 months in federal prison, U.S. Attorney Barry Grissom said.
Keenan R. Linneman, 34, Emporia, Kan., pleaded guilty to one count of traveling in interstate commerce in furtherance of drug trafficking. In his plea, he admitted aiding and abetting another person to obtain 35 pounds of marijuana from Texas. On Nov. 4, 2013, the Lyon County Sheriff’s Department executed a search warrant at Linneman’s home where they found the marijuana and the firearms.
Grissom commended the Lyon County Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Lanny Welch for their work on the case.
Eagle Butte Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on September 22, 2014, by U.S. District Judge Roberto A. Lange.
Seth Carter, age 20, was sentenced to 10 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Carter was indicted by a federal grand jury on February 12, 2014. He pled guilty on June 30, 2014.
The conviction stems from an incident wherein Carter failed to register as a sex offender between December 4, 2013, and February 12, 2014. He had previously been convicted of Attempted Rape in the Fourth Degree in the Sixth Circuit District Court, Stanley County, South Dakota, which requires him to register as a sex offender.
This case was investigated by the U.S. Marshals Service and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Carter was immediately turned over to the custody of the U.S. Marshals Service.
Drug Transporter Arrested in Kern County SentencedRead the Press Release
FRESNO, Calif. — Enrique Reynosa, 37, was sentenced today to four years and nine months in prison, to be followed by three years of supervised release, for possessing methamphetamine and cocaine with intent to distribute, United States Attorney Benjamin B. Wagner announced. Senior U.S. District Judge Anthony W. Ishii also ordered the forfeiture of the Silverado pickup truck that Reynosa used to transport the drugs and $1,510 in cash.
According to court documents, on January 15, 2013, a CHP officer stopped Reynosa on Highway 99, south of State Route 119, for a traffic violation. The officer asked for and received verbal and written consent from Reynosa to search the vehicle. During the search, the officer found six pounds of methamphetamine, eight pounds of cocaine inside a speaker box. A drug detecting canine alerted to Reynosa’s right front pocket and led to the discovery of the cash.
This case was the product of an investigation by the U.S. Drug Enforcement Administration and California Highway Patrol. Assistant United States Attorney Karen Escobar prosecuted the case.
Dickinson County Man Pleads Guilty to Embezzling Railroad Union FundsRead the Press Release
TOPEKA, KAN. A former secretary-treasurer of a railroad union pleaded guilty Monday to embezzling union funds, U.S. Attorney Barry Grissom said.
Dale T. Hull, 62, Herington, Kan., pleaded guilty to one count of embezzling union funds. In his plea, Hull admitted the crime occurred while he was secretary-treasurer of the Brotherhood of Locomotive Engineers and Trainmen, Division 261, which represented employees of the Union Pacific Railroad who work in the Herington, Kan., terminal and the Salina, Kan., hub.
Starting in 2008, Hull made unauthorized and illegal account transfers from the union’s account to his personal checking account totaling more than $17,000. He also filed false reports to the U.S. Department of Labor in which he understated his earnings as secretary-treasurer of the union.
Sentencing is set for Jan. 5, 2015. He faces a maximum penalty of five years in federal prison, a fine up to $250,000 and restitution. Grissom commended the U.S. Department of Labor – Office of Inspector General and Assistant U.S. Attorney Richard Hathaway for their work on the case.
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Department of Justice Launches National Violence Reduction NetworkRead the Press Release
Attorney General Eric Holder and Assistant Attorney General Karol V. Mason for the Office of Justice Programs today launched the Violence Reduction Network (VRN), a national comprehensive approach to reduce violent crime in communities around the country. The Justice Department’s ability to provide intensive training and cutting-edge technical assistance will give local officials and law enforcement executives in each of the partner communities the support they need to advance anti-violence strategies.
“This new ‘all-hands’ approach to curbing endemic violence is founded on the recognition that our efforts are most effective when all criminal justice leaders stand united,” said Attorney General Holder. “It’s predicated on the notion that – although violent crime is in some ways a fundamentally local problem – it is not one that any community can meet in isolation.”
The Violence Reduction Network will help localities access a broad spectrum of Justice Department resources – empowering the federal government to strengthen partnerships and collaboratively tackle persistent challenges caused by violent crime. The partnering cities announced today are Camden, New Jersey; Chicago, Illinois; Detroit, Michigan; Oakland/Richmond, California; and Wilmington, Delaware.
The VRN summit’s agenda is dedicated to collaborative working sessions analyzing each city’s violence challenges and discussing the variety of department resources available to address the issues. Following the summit, the department will work with police chiefs and city leaders, along with leading criminal justice researchers and practitioners, to develop effective approaches to accomplishing each city’s violence reduction strategies.
“Through our partnerships with local leaders and practitioners and the wide range of resources we have available to address America’s public safety challenges, the Department of Justice is putting its full support behind violence reduction efforts in these five cities,” said Assistant Attorney General Mason. “I am eager to begin working with each of the sites and to help define a way forward to safer, healthier communities.”
Even with reports of national violent crime decreasing, in too many communities, crime rates have remained unacceptably high, particularly in areas where social ills like poverty, unemployment, and a lack of opportunity lead to tragic circumstances in which systemic violence can easily take root.
The launch of VRN is a result of the Obama administration’s continuing efforts to address violence in communities across the country. Nearly a year ago, President Obama convened a meeting at the White House with 18 mayors to discuss strategies for reducing youth violence. Following that meeting, Attorney General Holder sat down with mayors and police chiefs to talk about how the federal government can better support local efforts.
Representatives from VRN partner federal agencies include the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco and Firearms, the United States Marshals Service, the Drug Enforcement Administration, the Executive Office of the United States Attorneys, the Community Oriented Policing Services Office, the Office on Violence Against Women and the Office of Justice Programs.
Department of Justice Announces Camden, N.J., as Selected City for New Violence Reduction NetworkRead the Press Release
New Partnership Brings Together Federal and Local Law Enforcement,
Community Leaders to Reduce Violent Crime
WASHINGTON –Attorney General Eric Holder and Assistant Attorney General Karol V. Mason for the Office of Justice Programs today launched the Violence Reduction Network (VRN), a national comprehensive approach to reduce violent crime in communities around the country. The Justice Department’s ability to provide intensive training and cutting-edge technical assistance will give local officials and law enforcement executives in each of the partner communities the support they need to advance anti-violence strategies.
Camden, New Jersey, was selected as one of six cities slated to receive resources as part of the effort. Paul J. Fishman, U.S. Attorney for the District of New Jersey, was invited along with United States Marshal for the District of New Jersey Juan Mattos Jr.; Special Agents in Charge George P. Belsky of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, and Carl J. Kotowski of the Drug Enforcement Administration, New Jersey Division; J. Scott Thomson, Chief of the Camden County Police Department; and other federal, state, and local law enforcement officials working in Camden and around the country to participate in the three-day discussion on crime reduction strategies.
“This new ‘all-hands’ approach to curbing endemic violence is founded on the recognition that our efforts are most effective when all criminal justice leaders stand united,” said Attorney General Holder. “It’s predicated on the notion that – although violent crime is in some ways a fundamentally local problem – it is not one that any community can meet in isolation.”We have seen extraordinary things from what we call C-4, the unprecedented fusion center in Camden that brings together federal, state and local partners in a truly collaborative approach to fighting violent crime,” said U.S. Attorney Fishman. “It is gratifying that Camden has been selected as a partner in the VRN, so we will be able to build on what we’ve started and ensure federal resources are being used as effectively as possible to create safer communities. We have terrific local, county, state and federal partners who share our mission to make Camden the safe city its residents deserve”
The Violence Reduction Network will help localities access a broad spectrum of Justice Department resources – empowering the federal government to strengthen partnerships and collaboratively tackle persistent challenges caused by violent crime. The partnering cities announced today are Camden, New Jersey; Chicago, Illinois; Detroit, Michigan; Oakland/Richland, California; and Wilmington, Delaware.
The VRN summit’s agenda is dedicated to collaborative working sessions analyzing each city’s violence challenges and discussing the variety of department resources available to address the issues. Following the summit, the department will work with police chiefs and city leaders, along with leading criminal justice researchers and practitioners, to develop effective approaches to accomplishing each city’s violence reduction strategies.
“Through our partnerships with local leaders and practitioners and the wide range of resources we have available to address America’s public safety challenges, the Department of Justice is putting its full support behind violence reduction efforts in these five cities,” said Assistant Attorney General Mason. “I am eager to begin working with each of the sites and to help define a way forward to safer, healthier communities.”
Even with reports of national violent crime decreasing, in too many communities, crime rates have remained unacceptably high, particularly in areas where social ills like poverty, unemployment, and a lack of opportunity lead to tragic circumstances in which systemic violence can easily take root.
The launch of VRN is a result of the Obama administration’s continuing efforts to address violence in communities across the country. Nearly a year ago, President Obama convened a meeting at the White House with 18 mayors to discuss strategies for reducing youth violence. Following that meeting, Attorney General Holder sat down with mayors and police chiefs to talk about how the federal government can better support local efforts.
Representatives from VRN partner federal agencies include the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco and Firearms, the United States Marshals Service, the Drug Enforcement Administration, the Executive Office of the United States Attorneys, the Community Oriented Policing Services Office, the Office on Violence Against Women and the Office of Justice Programs.
For more VRN information visit www.bja.gov/Programs/VRN.html.14-347
Delaware Man Indicted for Murder for HireRead the Press Release
Greenbelt, Maryland - A federal grand jury has indicted Marquis Antwan Mack, a/k/a “Ice,” and “Goldie,” age 31, of Dover, Delaware, today for use of the telephone and interstate travel in the commission of a murder for hire.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Paul M. Bernat of the Dover Police Department.
The indictment alleges that from September 3, 2014 through September 12, 2014, Mack used his cellular telephone and traveled from Delaware to Maryland to arrange a murder for hire. According to indictment Mack allegedly agreed to pay $1,000 for the murder.
Mack faces a maximum sentence of 10 years in prison for use of the telephone and interstate travel in the commission of a murder for hire. An initial appearance has not yet been scheduled. Mack remains detained.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised ATF Baltimore and its Delaware Field Offices, and the Dover Police Department, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Daniel C. Gardner and Leah J. Bressack, who are prosecuting the case.
Cyberstalking Case Involving Violent Threats Against Art Dealers and Their Children Leads to 5-Year Federal Prison TermRead the Press Release
LOS ANGELES – The owner of a Temecula art gallery who stalked, harassed and attempted to extort as much as $300,000 from art world professionals was sentenced today to 60 months in federal prison.
Jason White, 43, of Temecula, who pleaded guilty in March to two counts of federal stalking, was sentenced today by United States District Judge Stephen V. Wilson.
During today’s hearing, Judge Wilson called White’s crimes ”horrendous” and “very disturbing.”
White was arrested by the FBI on February 12 after engaging in a six-month stalking and extortion scheme that targeted art world professionals with whom he had had business relationships. When those business relationships ended, White posted derogatory information about his former associates on websites he had created, and then used threatening emails to demand hundreds of thousands of dollars in exchange for taking the websites down. White repeatedly made extortionate demands through harassing text messages and emails, and when his demands were not met, he threatened violence against the victim families, including their children.
“Given the ominous, angry and relentless nature of the messages, the victims had a reasonable fear that defendant planned to hunt down and kill their spouses and children,” prosecutors wrote in a sentencing memo filed with the court. “Indeed, this case is a parent’s worst nightmare that will likely haunt the victims for the rest of their lives because they will always be fearful that defendant may find their children and make good on his threats.”
In one part of the scheme, White targeted his former employer, an art publisher, as well as White’s supervisor at the art publisher’s company. After creating derogatory websites in the art publisher’s name, White allegedly sent threatening text messages to the art publisher, the publisher’s son, and his former supervisor. In a text message to his former supervisor, he threatened to find her family and make her pay with “fear, anguish and pain.” On several occasions, White obtained pictures of her child and sent pictures of the child to the victim with comments such as “it will be very unfortunate if something was to happen to him.”
White’s “conduct also demonstrates a disturbing and escalating pattern of stalking conduct, particularly since he committed these crimes less than one year after a restraining order was filed against him by another former employer for identical cyber stalking and extortion conduct,” according to the government’s sentencing position papers. “As defendant intended, his stalking crimes traumatized his victims.”
During today’s sentencing hearing, two of the victims spoke, telling Judge Wilson how they felt terrorized by the barrage of threatening emails and texts that White sent them.
The case against White was investigated by the Federal Bureau of Investigation, Art Crime Team.
Release No. 14-131
Crisp & Cole Co-defendant Julie Farmer Sentenced to Three Years in PrisonRead the Press Release
FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced Julie Dianne Farmer, 46, of Bakersfield, today to three years in prison, to be followed by five years of supervised release, for her involvement in an extensive mortgage fraud scheme that ran from January 2004 to September 2007, United States Attorney Benjamin B. Wagner announced. Judge O’Neill ordered her to pay $2,914,331 in restitution and to forfeit $15 million. Judge O’Neill also found that Farmer obstructed justice by testifying falsely at trial, and that she supervised other participants in the conspiracy.
On April 22, 2014, a federal jury found Farmer guilty of conspiracy to commit mail fraud, wire fraud and bank fraud, and two counts each of mail fraud and wire fraud.
“Today’s sentencing is the result of a culture of greed and opportunism that saturated a Bakersfield real estate company,” said U.S. Attorney Wagner. “The owners of the company have been held accountable with lengthy prison sentences, but they could not have accomplished their crimes without the knowing and willing help of many within their organization. The fraud committed at Crisp & Cole and by other professionals prosecuted in our district made a bad financial climate even worse for our communities. The U.S. Attorney’s Office remains committed to uncovering and prosecuting fraud and abuse in all facets of the housing market.”
“As we discovered during the course of a multi-year investigation, Farmer, the chief operations officer of Crisp & Cole, conspired with David Crisp, Carl Cole, and others to intentionally defraud financial institutions of money and property for personal enrichment,” said Supervisory Special Agent Jose Moreno of the Sacramento FBI’s Bakersfield resident agency. “Such crimes are not victimless. The conspirators’ greed ultimately caused irreparable damage to the Bakersfield community that sentences or restitution cannot fully repair.”
According to the evidence at trial, Farmer was Crisp & Cole Real Estate’s (CCRE) chief operations officer and managed CCRE’s business operations and business accounts. Together with co-defendants David Crisp and Carl Cole, Farmer oversaw and managed a conspiracy to defraud residential lenders. They used straw purchasers to acquire properties at inflated prices with funds borrowed from lenders, often using 100 percent financing and based on false and fraudulent loan applications. The conspirators frequently resold the properties from one straw buyer to another, each time at an inflated, higher price in order to extract the purported increased “equity” from the property for their benefit. Ultimately, most of the properties were foreclosed upon after the defendants failed to make the mortgage payments when due.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Kirk Sherriff, Henry Carbajal III, and Christopher Baker are prosecuting the case.
Farmer was the only defendant who took her case to trial. Her co-defendants pleaded guilty for their roles in the scheme, and most have been sentenced. Carl Cole and David Crisp were each sentenced to 17 years and seven months in prison. Caleb Cole was sentenced to five months in prison, and Jennifer Crisp was sentenced to five years’ probation. Jayson Peter Costa was sentenced to six and a half years in prison. Michael Angelo Munoz received a sentence of two years in prison, and Jeriel Salinas received a 19-month sentence. Sneha Mohammadi is scheduled to be sentenced November 14, 2014. Robinson Nguyen has completed his 27-month sentence.
Five related cases were brought in 2009 and 2010 against five defendants who pleaded guilty to charges relating to this scheme. Jerald Allen Teixeira is scheduled to be sentenced on February 9, 2015. The sentences for the other defendants are as follows: Megan Balod – 36 months’ probation; Christopher Lance Stovall – one year in prison; Kevin Patrick Sluga – 20 months in prison; and Leslie Sluga – three years’ probation.
This case was investigated and prosecuted in coordination with the President’s Financial Fraud Enforcement Task Force. The task force was established 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 is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. For more information on the task force, please visit www.StopFraud.gov.
Criminal Street Gang Member Sentenced to 262 Months for Sex Trafficking of ChildrenRead the Press Release
DALLAS — A documented member of the 59 Bounty Hunter Bloods criminal street gang in Dallas, Keith Williams, a/k/a “Chucky Blood,” was sentenced this morning by U.S. District Judge David C. Godbey to 262 months in federal prison. Williams, 25, pleaded guilty in February 2014 to one count of sex trafficking of children. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas, made the announcement today.
Williams’ girlfriend, Erin Patton, also 24, was sentenced in August 2014 to 87 months in federal prison by Judge Godbey. She pleaded guilty in May 2014 to one count of conspiracy to commit sex trafficking of children.
According to documents filed in the case, in September 2012, after she ran away from home, 14-year-old “Jane Doe” met Erin Patton. Patton let Jane Doe stay with her, and Patton facilitated Jane Doe’s engaging in commercial sex acts by driving her to locations where the acts occurred and providing her a cell phone so she could post her services on “Mocospace” and Backpage.com. Jane Doe gave Patton a portion of the money she earned from engaging in the sex acts.
Again, in November 2012, after she again ran away from home, Jane Doe contacted Patton. This time, both Patton and Williams picked up Jane Doe and posted her availability to engage in commercial sex acts on Backpage.com. While Williams went to serve a jail sentence shortly thereafter, Patton continued facilitating Jane Doe’s commercial sex acts. Jane Doe eventually left.
In April 2013, Jane Doe again contacted Patton and told her she was still in school, but wanted to leave and wanted Patton to pick her up. Patton and Williams agreed to let Jane Doe stay with them, but they told her she was going to have to engage in commercial sex acts, as she had done in the past, to pay for her expenses. Williams and/or Patton drove Jane Doe to meet with customers and Jane Doe gave all the money she earned to Williams and Patton. Williams also had sex with Jane Doe.
On May 4, 2013, officers with the Dallas Police Department (DPD) encountered now 15-year-old Jane Doe, in a car parked in an area known for prostitution. Williams came by shortly thereafter. He admitted knowing she was 15, driving her to meet with customers, and to keeping the proceeds from her “dates.”
The Dallas Police Department’s Gang Unit and Child Exploitation Squad investigated the case in conjunction with the FBI. Assistant U.S. Attorney Cara Foos Pierce prosecuted.
Conspirator Sentenced to over Four Years in Prison for Bank Fraud SchemesRead the Press Release
Stole Checks from Mailboxes
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Paul Essel, age 27, of Laurel, Maryland, today to 57 months in prison, followed by four years of supervised release, for conspiring to commit bank fraud, bank fraud and aggravated identity theft in connection with two bank fraud schemes. Judge Grimm also ordered Essel to pay forfeiture and restitution of $418,435.48.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury Office of Inspector General; and Special Agent in Charge Kathy A. Michalko of the United States Secret Service – Washington Field Office.
“Stealing mail to commit identity theft and fraud not only jeopardizes people’s trust in the U.S. postal system, it threatens the overall financial health of our communities,” said Postal Inspector in Charge Gary Barksdale, U.S. Postal Inspection Service - Washington Division. “Today’s sentencing confirms that anyone using the U.S. Mail for criminal activity will be brought to justice and held accountable.”
According to his plea agreement, from June 14, 2010 to March 11, 2013, Essel and co-defendant Nelly Dadson opened bank accounts in their own names and in the names of shell corporations that they controlled. Essel and others used counterfeit checks that resembled convenience checks that had been stolen from mailboxes in Montgomery and Prince George’s Counties. The counterfeit checks contained names, addresses and account information that appeared on the convenience checks. Essel deposited these counterfeit checks into accounts controlled by the conspirators and then withdrew funds from the accounts. Essel also provided checks to Dadson with instructions to deposit these counterfeit checks into accounts that she controlled, withdraw the funds and provide the funds to Essel, for which Essel paid Dadson.
In addition, from June 14, 2010 to November 13, 2012, Essel and Dadson conspired to defraud Home Depot. On multiple occasions, a conspirator placed an order by phone with a Home Depot store for flooring in amounts ranging from $2,500 to $8,000, using a stolen credit card number. Within a few days, a conspirator called to cancel the order and supplied a debit card number of a conspirator, including Essel and Dadson, requesting that the refund for the order be placed on the conspirator’s debit card. At Essel’s request, Dadson received 38 credits to her bank accounts totaling approximately $141,159.07, which she then withdrew and provided to Essel. Essel paid Dadson $600 to $800 per transaction. Essel also received at least three credits to his bank accounts totaling approximately $8,902.96, which he withdrew.
The total loss caused by Essel’s conduct is between $400,000 and $1 million, and involved between 10 and 50 victims.
Nelly Dadson, age 24, of Baltimore, previously pleaded guilty to her participation in the schemes and was sentenced to four years in prison, for conspiring to commit bank fraud and aggravated identity theft. Judge Grimm also ordered Dadson to forfeit and pay restitution of at least $251,745.52.
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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Postal Inspection Service, U.S. Department of Treasury – Office of Inspector General and U.S. Secret Service for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Bryan Foreman, who prosecuted the case.
Chief of Police Sentenced for Color of Law ViolationRead the Press Release
OXFORD: Felicia C. Adams, United States Attorney for the Northern District of Mississippi, and Johnnie Sharp, Acting, Special Agent in Charge (SAC), Federal Bureau of Investigation (FBI), announced today that Jimmie Johnson, age 31, former Tutwiler, Mississippi, Police Officer and former Chief of Police of Webb, Mississippi, was sentenced by Chief U. S. District Judge Sharion Aycock to serve twenty (20) months in prison, followed by two (2) years of supervised release, after pleading guilty of violating a federal civil rights statute. Johnson was also ordered to complete fifty (50) hours of community service. In addition, Johnson agreed to never seek future employment in law enforcement.
Johnson was indicted on October 31, 2013, for an incident which occurred in February of 2012, while he was employed as a captain with the Tutwiler, Mississippi, Police Department. On March 25, 2014, Johnson pled guilty to Count One of the indictment, which stated that while acting under color of law, Johnson assaulted an individual by striking him in the face with his fist, causing bodily injury, and thereby willfully depriving that individual of the right to be free from the use of unreasonable force by a law enforcement officer, in violation of Title 18, United States Code, Section 242.
U.S. Attorney Felicia C. Adams stated, “Johnson’s actions were reprehensible. He abused his authority, violated the law and the public trust. Today’s sentence demonstrates that such actions undermine the rule of law and will not be tolerated. While the majority of law enforcement officers are hardworking professionals who risk their lives daily for our safety, the U.S. Attorney’s Office is committed to aggressively prosecuting those officers who break the law and violate the public trust.”
A/SAC Sharp stated: “Every citizen has the right to expect law enforcement officers to act in accordance with the laws they have sworn to uphold. We entrust law enforcement officers with certain powers and authority, which they are expected to wield with the utmost integrity. This case proves that abuse of that power and authority will not be tolerated.”This case was investigated by the Federal Bureau of Investigation, with assistance from the Tallahatchie County Sheriff’s Office, and prosecuted by the United States Attorney’s Office for the Northern District of Mississippi.
Chicago Taxicab Operator Indicted and Arrested for Allegedly Conspiring to Falsify Titles of Salvaged and Rebuilt TaxisRead the Press Release
CHICAGO ― A Chicago used car broker and taxicab operator was arrested today after being indicted on federal charges for allegedly causing at least 180 vehicles that were salvaged or rebuilt to illegally obtain clean titles from Indiana and Illinois and, as a result, to illegally operate as licensed and registered taxicabs in the City of Chicago.
The defendant, ALEXANDER IGOLNIKOV, 67, of Northbrook, was charged with one count of conspiracy and two counts each of interstate transportation of false automobile titles and possession of false auto titles in a five-count indictment that was returned by a federal grand jury on Aug. 27 and unsealed today following his arrest.
Ignolikov was scheduled to appear at 3 p.m. today before U.S. Magistrate Judge Jeffrey T. Gilbert in Courtroom 1386 in U.S. District Court.
Igolnikov, also known as “Alexandr Igolnikov” and “Alex,” was the owner of Seven Amigos Used Cars and vice president of Chicago Elite Cab Corp., which operated taxis under city taxi medallions managed by Chicago Elite Cab and related entities affiliated with Chicago Carriage Taxi Company. City taxi medallion rules prohibit any vehicle that was ever issued a “salvage” or “rebuilt” title in any state from being used as a taxicab in Chicago.
The indictment alleges that between 2007 and April 2010 Ignolikov conspired with three unnamed auto brokers, two in Indiana and one in Illinois, to purchase vehicles with salvage titles from online auction sites; fraudulently obtain either clean or rebuilt Indiana titles for those vehicles by submitting false paperwork to the Indiana Bureau of Motor Vehicles; and then using those re-issued Indiana titles to obtain clean Illinois titles, concealing that the vehicles were previously issued salvage or rebuilt titles.
According to the indictment, in many instances, Ignolikov agreed with three auto brokers to have the damaged vehicles towed from the online auctions sites’ yards in out-of-state locations to the premises of Seven Amigos and Chicago Carriage near 26th Street and South Wabash Avenue in Chicago, where the vehicles would be repaired.
In addition to submitting false paperwork concealing the vehicles’ history and damage to Indiana authorities, Ignolikov and the brokers also submitted a false affidavit certifying that an Indiana law enforcement officer had personally examined the vehicles and verified certain identifying information, the charges allege. In reality, no officer had examined the vehicle and the affidavit of a police officer was signed by unnamed Officer A for a fee, or unnamed Officer B, or other individuals without any physical inspection, according to the indictment.
In some instances, based on the allegedly false towing paperwork and false police affidavits, the Indiana Bureau of Motor Vehicles issued clean titles to various auto brokers for vehicles that were previously issued salvage titles. In other instances, other individuals obtained Indiana rebuilt titles through fraud and then placed stickers on those titles concealing that the titles identified the vehicles as being rebuilt. After obtaining either a clean or rebuilt Indiana title for the vehicles, Ignolikov purchased the vehicles in the name of Seven Amigos, Chicago Elite Cab, or other businesses and paid a premium above the purchase price in exchange for the brokers’ work in securing the clean or rebuilt Indiana titles, the indictment alleges.
Finally, Ignolikov and his business associates allegedly used the clean and rebuilt Indiana titles to obtain clean Illinois titles for the vehicles, and later concealed from the City of Chicago the fact that the vehicles were previously issued salvage or rebuilt titles, which prohibited them from being used as taxis.
The arrests and indictment were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Joseph Ferguson, Inspector General for the City of Chicago. The investigation is continuing, they said.
The government is being represented by Assistant U.S. Attorneys Margaret Schneider and Steven Dollear.
Conspiracy carries a maximum sentence of five years in prison, while each count of interstate transportation and possession of false auto titles carries a maximum penalty of 10 years in prison and all five counts carry a $250,000 maximum fine. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Chicago Man Charged and Arrested for Making Bomb and Violence Threats Against Southern Illinois UniversityRead the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Derrick Dawon Burns, 21, of Chicago, Illinois, was charged in a previously-sealed criminal complaint on September 25, 2014, with eight federal charges stemming from a series of bomb and violence threats directed toward Southern Illinois University, Carbondale (SIUC), students, faculty and staff on October 10, 2012, October 15, 2012, December 6, 2012, and October 1, 2013.
“I am proud of the unflagging investigative efforts performed by the federal and state law enforcement agencies working jointly on this case. These types of threats carry immensely dangerous consequences for all involved. You can be certain that my office and law enforcement never once failed to take these threats seriously or to give up the fight to apprehend the person we believe is responsible. Instilling anger, fear and disruption at a major university is something the people of Southern Illinois should not have to condone.” said United States Attorney Wigginton.
After authorities arrested Burns in Chicago today, he had his initial appearance in the United States District Court for the Northern District of Illinois, where the criminal complaint was unsealed. Burns is being held without bond pending a detention hearing set for Wednesday, October 1, 2014, in Chicago.
Each of the eight federal charges carry maximum penalties of ten years imprisonment, three years supervised release, a $250,000 fine and a $100 special assessment.
The criminal complaint is the culmination of an investigation on the part of the SIUC Department of Public Safety, the Federal Bureau of Investigation, and the United States Postal Inspection Service. Assistance was provided by the Carbondale Police Department, the Illinois Secretary of State Bomb Squad, the Jackson County Sheriff’s Department, and the Illinois State Police. The case is being prosecuted by Assistant U.S. Attorney Liam Coonan and Special Assistant U.S. Attorney John C. Constance.
Chaparral Man Sentenced to Federal Prison for Unlawful Possession of Stolen FirearmsRead the Press Release
ALBUQUERQUE – Pete Richard Ferraro, 23, of Chaparral, N.M., was sentenced today in federal court in Las Cruces, N.M., to 57 months in federal prison followed by three years of supervised release for unlawfully possessing stolen firearms. His co-defendant Emanuel Medina, 24, of El Paso, Texas, was sentenced on Sept. 23, 2014, to 46 months in federal prison followed by two years of supervised release for a similar conviction.
Medina and Ferraro were arrested on a criminal complaint filed in Oct. 2013, charging them with unlawfully possessing firearms between Oct. 11, 2013 and Oct. 23, 2013, in Doña Ana County, N.M. According to the complaint, on Oct. 22, 2013, an officer of the El Paso Police Department reported that a rifle and a shotgun were missing from his unmarked police vehicle. The results of a latent prints examination revealed that Ferraro left his fingerprints on the police vehicle. During the course of the investigation, Medina and Ferraro were interviewed and implicated themselves in the theft of the firearms. The firearms were recovered in two Chaparral residences.
On May 27, 2014, Medina pled guilty to a felony information charging him with possession of stolen firearms. In his plea agreement, Medina admitted that Ferraro and he broke into the officer’s vehicle, stole the firearms and transported the firearms from Texas to New Mexico. Ferraro entered a guilty plea to possession of stolen firearms on July 23, 2014.
This case was brought 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.This case was investigated by the El Paso Group III Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the El Paso Police Department, and was prosecuted by Assistant U.S. Attorney Randy Castellano of the U.S. Attorney’s Las Cruces Branch Office.
Cedar Rapids Man Pleads Guilty to Maintaing A Premises to Sell Synthetic Drugs and Identity TheftRead the Press Release
A man who opened the Fragrance Hut smoke shop pled guilty today in federal court in Cedar Rapids.
Matthew James McCauley, age 39, from Cedar Rapids, Iowa, was convicted of maintaining a premises for the distribution of controlled substances and aggravated identity theft.
At the plea hearing, McCauley admitted he opened the Fragrance Hut, formerly located at 2902 First Avenue NE in Cedar Rapids, for the purpose of distributing illegal synthetic controlled substances, commonly referred to as “spice” or “K2.” Court documents reflect McCauley opened the Fragrance Hut in February 2014, and that the store sold synthetic cannabinoid products with names like “WTF,” “Diablo,” “Purple Haze,” “Fairly Legal,” “Green Giant,” and “Smoking Santa.” McCauley also admitted to having stolen the identity of another individual during and in relation to a wire fraud scheme. Court documents reflect McCauley created a false driver’s license using another individual’s name and date of birth. McCauley then used that name and date of birth to obtain a fraudulent line of credit to purchase jewelry at a local jewelry store.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. McCauley remains in custody of the United States Marshal after the guilty plea and will remain in custody pending sentencing. McCauley faces a possible maximum sentence of 20 years’ imprisonment on the drug charge, and a mandatory consecutive sentence of 2 years’ imprisonment on the identity theft charge. He also faces up to $750,000 in fines, $200 in special assessments, and 4 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Dan Chatham and was investigated by as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa Division of Narcotics Enforcement; and the Sixth Judicial District Department of Correctional Services.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file numbers are CR14-94-LRR and 14-MJ-186.
Cedar Rapids Man Pleads Guilty to Being A Felon and Unlawful Drug User in Possession of A FirearmRead the Press Release
A man who discharged a shotgun into an apartment above his own pled guilty today in federal court in Cedar Rapids.
Clifford Smith, age 51, from Cedar Rapids, Iowa, was convicted of one count of being a felon and unlawful drug user in possession of a firearm.
In a plea agreement, Smith admitted that he was a felon, having been convicted in 1992 and 2003 of drug offenses in the Iowa District Court for Linn County. Smith also admitted he was an unlawful user of marijuana. On July 4, 2013, Smith was living in a down stairs apartment on Wilson Avenue in Cedar Rapids. At some point in the early morning hours that day, Smith discharged a shotgun in his apartment. The blast penetrated the floor of the apartment above Smith’s own apartment. The owner of that apartment contacted the Cedar Rapids Police Department.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Smith remains in custody of the United States Marshal and will remain in custody pending sentencing. Smith faces a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, $100 in special assessments, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the FBI Safe Streets Task Force and the Cedar Rapids Police Department.
Court file information is available at ttps://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-CR-00071.
Calvert County Man Indicted on Drug Charges, Including the Distribution of Heroin Resulting in DeathRead the Press Release
Greenbelt, Maryland - A federal grand jury has indicted Russell Edward Johnson, age 23, of Lusby, Maryland, today on charges of drug distribution, including one count of distribution of heroin resulting in death.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Calvert County Sheriff Mike Evans; and Calvert County State’s Attorney Laura Martin.
“Heroin is quickly becoming the drug of choice, leaving in its wake countless victims who have succumbed to heroin related overdoses, and in some cases, death. Today, Mr. Johnson is charged with supplying heroin, causing the ultimate, tragic death of an innocent person. Heroin has claimed another casualty: a victim that could have been your brother, your father, or a friend,” said Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division. “This investigation was a collaborative effort of DEA and the United States Attorney’s Office, Calvert County Sheriff’s Department and the Calvert County State’s Attorney’s Office. Together we send a message that drug dealers will pay the price for their acts. DEA will use all resources at its disposal to investigate and arrest those individuals whose only motivation is greed and who carry with them a complete disregard for human life.”
The four count indictment alleges that on April 10, 2013, Johnson possessed oxycodone with the intent to distribute and that on July 11 and July 18, 2013, Johnson distributed heroin. Finally, the indictment alleges that on July 18, 2013, Johnson distributed heroin and a person died as a result of using that heroin.
Johnson faces a mandatory minimum sentence of 20 years and a maximum of life in prison for distribution of heroin resulting in death; and a maximum of 20 years in prison for each of the two counts of distribution of heroin and for possession of oxycodone with the intent to distribute. An initial appearance has not yet been scheduled. Johnson is currently detained on related state charges.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the DEA, Calvert County Sheriff’s Office, and Assistant State’s Attorney Lisa Ridge of the Calvert County State’s Attorney’s Office, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Arun G. Rao and Daniel C. Gardner, who are prosecuting the case.
Browning Man Is Convicted After Federal Strangulation Jury TrialRead the Press Release
GREAT FALLS-The Montana United States Attorney's Office announces that the first federal felony strangulation jury conviction has occurred in Great Falls, Montana. A jury of Montana citizens convicted Jordan James Lamott on September 16, 2014, of strangling his girlfriend three times, after which she passed out. Under the new strangulation statute, Lamott faces up to ten years in prison, a $250,000 fine, and three years of supervised release. This is the first trial conviction in Montana under a new federal statute criminalizing strangulation on Indian Reservations of federally-recognized tribes. It is also one of the first such cases in the country.
This conviction represents a significant step forward in ensuring the safety and well-being of women and families on Montana's reservations," said Mike Cotter. "This violence can have lethal consequences, and we are proud to be among the first districts to ensure this statute is vigorously enforced." Victims of one episode of strangulation are six times more likely to be a victim of attempted homicide by the same partner. These same victims are seven times more likely to actually die at the hands of their loved ones. A recent Center for Disease Control and Prevention survey found that 46% of Native American women have experienced rape, physical violence, or stalking by an intimate partner in their lifetime.
Lamott is one of several Montana defendants recently charged with felony strangulation under the new statute. Lamott was indicted in July 2014 by a Montana federal grand jury. At trial, Assistant U.S. Attorney Ryan G. Weldon presented evidence that Lamott's girlfriend wore a skirt to impress him. Lamott became angry and strangled his girlfriend three times. The final time, she lost consciousness. In the morning, Lamott requested that his girlfriend have sex with him, and when she refused, he kicked her out of the house. At the hospital a few hours later, Lamott's girlfriend explained that she had been strangled. Medical professionals testified that the bruising around her neck was consistent with strangulation.
The United States Attorney's Office in Montana has joined forces with other law enforcement and social services agencies to conduct trainings on Montana's reservations regarding how to investigate these offenses and care for victims of these potentially-lethal felony offenses. On March 7, 2013, President Obama signed into law the reauthorization of the Violence Against Women Act (VAWA). This law contains provisions that significantly improve the safety of Native women and allow federal and tribal law enforcement agencies to hold more perpetrators of domestic violence accountable for their crimes. The strangulation statute and VAWA offers the U.S. Attorney's Office a critical weapon to ensure that domestic violence is dealt with swiftly before it becomes lethal.
The tribal provisions in VAWA address three significant legal gaps by: (1) recognizing certain tribes' power to exercise concurrent criminal jurisdiction over domestic violence cases, regardless of whether the defendant is Indian or non-Indian; (2) clarifying that tribal courts have full civil jurisdiction to enforce protection orders involving any person, Indian or non-Indian; and (3) creating new federal statutes to address crimes of violence, such as strangulation, committed against a spouse or intimate partner and providing more robust federal sentences for certain acts of domestic violence in Indian country.
The investigation of Lamott was conducted by the Bureau of Indian Affairs. Lamott's sentencing is December 18, 2014, at 2:30 p.m., at the Missouri River Courthouse in Great Falls, Montana.
Barre Woman to Serve 48 Months in Federal Prison for Distributing Crack Cocaine and Oxycodone PillsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on September 29, 2014, Heather Brown, 33, of Barre, Vermont, was sentenced to 48 months in federal prison for distributing hundreds of ounces of crack cocaine and tens of thousands of oxycodone pills and for continuing to deal drugs while under federal court supervision. United States District Judge William K. Sessions III ordered Brown to serve a three-year term of supervised release after her prison term is completed. Judge Sessions also ordered Brown to forfeit her drug proceeds, which include approximately $41,000 in cash seized from Brown and a handgun Brown used in furtherance of her drug distribution business.
According to court records, from 2011 until her first arrest on September 9, 2013, Brown sold thousands of oxycodone pills in the Barre area. She obtained these pills from an out-of-state source. Beginning about nine months prior to her 2013, arrest, Brown also sold hundreds of ounces of cocaine base, which she obtained from a separate out-of-state source. When members of the Vermont Drug Task Force arrested Brown on September 9, 2013, they searched her person and her Barre residence. In total, law enforcement seized approximately 800, 30 milligram oxycodone pills, over one ounce of cocaine base, commonly referred to as “crack” cocaine, over $41,000 in cash, and a .380 caliber handgun. Brown subsequently admitted that she was a drug dealer and told police that she had obtained the handgun in exchange for crack.
Brown was charged in federal court and ordered released under court supervision pending the resolution of her case. The Vermont Drug Task Force later learned that Brown continued to deal large quantities of oxycodone pills while under federal court supervision. On January 14, 2014, the Vermont State Police stopped a vehicle traveling north on Interstate 91 which had Brown as a passenger. Troopers found approximately 758 oxycodone pills on Brown’s person. The male driver of the vehicle told police that Brown had promised him oxycodone pills in exchange for him driving Brown to Holyoke, Massachusetts to obtain a re-supply of oxycodone pills. The man admitted that he had performed the same service for Brown approximately five times in the previous month-and-a-half.
After her January 14, 2014 arrest, Brown was detained pending resolution of her case. On March 12, 2014, she pled guilty to one count of conspiring to distribute oxycodone, one count of conspiring to distribute cocaine base, and one count of committing an offense while on federal conditions of release.For the oxycodone and cocaine base conspiracy convictions, Brown faced a maximum of 20 years in prison on each of the two counts. For committing a criminal offense while on federal pretrial release, which is a separate crime, Brown faced a maximum prison sentence of ten years. Under the U.S. Sentencing Guidelines, which are advisory, Brown’s recommended term of imprisonment was 151-188 months. Pursuant to a written plea agreement, Brown agreed she was responsible for selling at least 20,000, 30 milligram oxycodone pills, for selling at least 328 grams of cocaine base, and for possessing a firearm while dealing drugs.
At sentencing, the United States asked the court to sentence Brown to 82 months in prison. The government argued that the quantity of drugs Brown dealt, that she was armed, and that continued to deal drugs on a large scale while under federal court supervision, all constituted significant aggravating factors. The government also acknowledged a number of mitigating factors, including Brown’s relationship with her minor children, her lack of a lengthy criminal record, and her mental health issues.
Instead, Judge Sessions imposed a 48-month sentence. In explaining his decision Judge Sessions cited, among other factors, Brown’s history of depression and alcoholism, as well as her difficult childhood. Judge Sessions also emphasized the importance of Brown maintaining a relationship with her children.
United States Attorney Tristram J. Coffin commended the hard work of the Vermont State Police, the Vermont Drug Task Force, the Montpelier Police Department, and the Barre City Police Department. The prosecutor is Assistant United States Attorney Timothy C. Doherty, Jr. Brown is represented by Burlington defense attorney Mark Kaplan.Attorney General Holder Announces Latest Effort to Strengthen Community Policing with Approximately $124 Million Hiring Grant to Local Law EnforcementRead the Press Release
Attorney General Eric Holder and Director Ron Davis of the Office of Community Oriented Policing Services (COPS) today announced the department's latest effort to strengthen community policing through hiring grants that will fund nearly 950 officers at 215 law enforcement agencies in cities and communities across the country. This year’s $124 million in awards place a special emphasis on increasing community policing, bolstering crime reduction, and making the streets of America safer.
“These targeted investments will help to address acute needs – such as high rates of violent crime – funding 75 percent of the salary and benefits of every newly-hired or re-hired officer for three full years,” said Attorney General Holder. “The impact of this critical support will extend far beyond the creation and preservation of law enforcement jobs. It will strengthen relationships between these officers and the communities they serve, improve public safety and keep law enforcement officers on the beat.”
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Director Davis. “Funding from this year’s program will allow many cities and counties to focus newly sworn personnel on issues related to violent crime, property crime and school safety.”
The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides up to 75 percent of the approved entry-level salaries and fringe benefits of full-time officers for a 36-month grant period, with a minimum 25 percent local cash match requirement and a maximum federal share of $125,000 per officer position.
Grantees for the 2014 hiring program were selected based on their proposed community policing strategies, fiscal need and violent crime rates.
To date, the COPS Office has funded more than 125,000 officers serving over 13,000 state, local and tribal law enforcement agencies, in jurisdictions both large and small. More than 700,000 people – including government leaders, community members and police officials – have received training through COPS-funded organizations. Since its inception in 1994, the COPS Office has provided roughly $14 billion to put additional officers on the streets, to provide technical assistance and training, to enhance crime fighting technology and to support cutting-edge crime prevention initiatives.
For the entire list of grantees and additional information about the 2014 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
Attorney General Holder Announces Latest Effort to Strengthen Community Policing with Approximately $124 Million Hiring Grant to Local Law EnforcementRead the Press Release
New Hiring Grants Place Special Emphasis on Community Policing
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Attorney General Eric Holder and Director Ron Davis of the Office of Community Oriented Policing Services (COPS) announced the department's latest effort to strengthen community policing through hiring grants that will fund nearly 950 officers at 215 law enforcement agencies in cities and communities across the country. This year’s $124 million in awards place a special emphasis on increasing community policing, bolstering crime reduction, and making the streets of America safer.
“These targeted investments will help to address acute needs – such as high rates of violent crime – funding 75 percent of the salary and benefits of every newly-hired or re-hired officer for three full years,” said Attorney General Holder. “The impact of this critical support will extend far beyond the creation and preservation of law enforcement jobs. It will strengthen relationships between these officers and the communities they serve, improve public safety and keep law enforcement officers on the beat.”
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Director Davis. “Funding from this year’s program will allow many cities and counties to focus newly sworn personnel on issues related to violent crime, property crime and school safety.”
The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides up to 75 percent of the approved entry-level salaries and fringe benefits of full-time officers for a 36-month grant period, with a minimum 25 percent local cash match requirement and a maximum federal share of $125,000 per officer position.
Grantees for the 2014 hiring program were selected based on their proposed community policing strategies, fiscal need and violent crime rates.
To date, the COPS Office has funded more than 125,000 officers serving over 13,000 state, local and tribal law enforcement agencies, in jurisdictions both large and small. More than 700,000 people – including government leaders, community members and police officials – have received training through COPS-funded organizations. Since its inception in 1994, the COPS Office has provided roughly $14 billion to put additional officers on the streets, to provide technical assistance and training, to enhance crime fighting technology and to support cutting-edge crime prevention initiatives.
For the entire list of grantees and additional information about the 2014 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
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.
Akron Man Sentenced to Six Years in Prison for Possessing RicinRead the Press Release
Jeff Boyd Levenderis, age 58, of Akron, was sentenced to six years in prison for possessing the biological toxin ricin for use as a weapon, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation's Cleveland office.
Levenderis was convicted on four counts -- one count of possessing a biological toxin for use as a weapon, one count of possessing ricin and two counts of making false statements to FBI agents -- earlier this year following a trial.
The evidence and testimony introduced at trial showed that Levenderis produced ricin, a deadly biological toxin, at his home in Akron, sometime after 2000 and kept it in his freezer until it was recovered by FBI agents in January 2011.
The evidence showed that Levenderis intended to make a “weaponized” form of ricin. The evidence also showed that Levenderis planned to use the ricin against his stepfather and against first responders who might respond to a fire Levenderis planned to set at his house as part of an elaborate suicide plan.
Testimony at trial confirmed that the substance Levenderis manufactured contained active ricin and that it contained hundreds of lethal doses if inhaled or injected.
The case was prosecuted by Assistant United States Attorneys Matthew W. Shepherd and Om Kakani and Erin Creegan, Trial Attorney with the National Security Division of the United States Department of Justice. The conviction resulted from an investigation conducted by the FBI.
Administrator Sentenced to 68 Months in Prison for Role in $6 Million Miami Home Health Care Fraud SchemeRead the Press Release
An administrator of a Miami home health care company, Professional Medical Home Health LLC, was sentenced to serve 68 months in prison and ordered to pay $6,257,142 million in restitution today for her participation in a $6 million health care fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and 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 made the announcement. U.S. District Judge Federico A. Moreno of the Southern District of Florida imposed the sentence.
According to court documents, Annilet Dominguez, 28, of Hialeah, Florida, was an administrator at Professional Home Health. Dominguez and her co-conspirators paid kickbacks to patient recruiters in return for providing patients to Professional Home Health. Dominguez and her co-conspirators falsified patient documentation to make it appear that beneficiaries qualified for and received home health care services, when, in fact, many of the beneficiaries did not actually qualify for or receive such services. Dominguez and her co-conspirators then caused the submission of false claims to Medicare for services that were not medically necessary or not provided.
From December 2008 through February 2014, Medicare paid Professional Home Health approximately $6.25 million for fraudulent claims for home health care services.
On June 25, 2014, Dominguez pleaded guilty to one count of conspiracy to commit health care fraud and three counts of making false statements related to health care matters. On Aug. 26, 2014, co-defendant Annarella Garcia was sentenced to serve 70 months in prison and ordered to pay $6,257,142 million in restitution.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorneys Anne P. McNamara and A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
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Administrator Sentenced to 68 Months in Prison for Role in $6 Million Miami Home Health Care Fraud SchemeRead the Press Release
An administrator of a Miami home health care company, Professional Medical Home Health LLC, was sentenced to serve 68 months in prison and ordered to pay $6,257,142 million in restitution today for her participation in a $6 million health care fraud scheme.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and 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 made the announcement. U.S. District Judge Federico A. Moreno of the Southern District of Florida imposed the sentence.
According to court documents, Annilet Dominguez, 28, of Hialeah, Florida, was an administrator at Professional Home Health. Dominguez and her co-conspirators paid kickbacks to patient recruiters in return for providing patients to Professional Home Health. Dominguez and her co-conspirators falsified patient documentation to make it appear that beneficiaries qualified for and received home health care services, when, in fact, many of the beneficiaries did not actually qualify for or receive such services. Dominguez and her co-conspirators then caused the submission of false claims to Medicare for services that were not medically necessary or not provided.
From December 2008 through February 2014, Medicare paid Professional Home Health approximately $6.25 million for fraudulent claims for home health care services.
On June 25, 2014, Dominguez pleaded guilty to one count of conspiracy to commit health care fraud and three counts of making false statements related to health care matters. On Aug. 26, 2014, co-defendant Annarella Garcia was sentenced to serve 70 months in prison and ordered to pay $6,257,142 million in restitution.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorneys Anne P. McNamara and A. Brendan Stewart 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.
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.
Acoma Pueblo Man Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Robert Lucero, 44, an enrolled member of the Acoma Pueblo, pleaded guilty this morning to a federal assault charge under a plea agreement with the U.S. Attorney’s Office.
Lucero was arrested on May 21, 2014, on a criminal complaint charging him with assault with a dangerous weapon, with intent to do bodily harm, and resulting in serious bodily injury. Lucero subsequently was charged in a two-count indictment with assault with a dangerous weapon and assault resulting in serious bodily injury. According to court filings, the victim, also an enrolled member of Acoma Pueblo, stated that Lucero assaulted the victim, with what appeared to be a wooden bat or stick on May 1, 2014 within the boundaries of the Pueblo of Acoma Reservation.
During today’s hearing, Lucero entered a guilty plea to count two of the indictment and admitted that on May 1, 2014, he assaulted the victim with a wooden axe handle, which resulted in serious bodily injury.
Lucero has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. Under the terms of his plea agreement, Lucero will be sentenced to 24 months in federal prison followed by a term of supervised release to be determined by the court.
This case was investigated by the Albuquerque office of the Federal Bureau of Investigation with assistance from the Acoma Pueblo Police Department and is being prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
28 September 2014
Drug Importer Sentenced in Federal CourtRead the Press Release
Adrian Alexusia Benson, 37, of Daphne, Alabama, was sentenced in federal court this morning for his illegal importation of controlled substances. In May of 2014, Benson had pled guilty to the importation of Ketamine, a Schedule III controlled substance, and to attempting to import Anabolic Steriods and Xanax, Schedule III and IV controlled substances respectively.
United States District Court Judge William H. Steele ordered that Benson serve three years probation for the offenses. The judge also ordered that Benson undergo testing and treatment for drug abuse while he is on probation, and required that Benson pay $300 in special mandatory assessments.
The case was investigated by the Department of Homeland Security Investigations and the United States Postal Inspectors. It was prosecuted in the United States Attorney's Office by Assistant United States Attorney Gloria Bedwell.
26 September 2014
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Adrian Williams, 41, of La Porte, Indiana pled guilty to the felony offense of manufacturing marijuana. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Administration. Sentencing has been set for 1/8/ 2015. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITION
- Oscar Martinez, 35, of Logansport, Indiana was sentenced to 37 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of conspiracy to distribute cocaine. According to documents filed in this case, between March 2012 and November 2013, Martinez was involved with several individuals in distributing cocaine in the Logansport area. Martinez delivered cocaine to an individual working for law enforcement. This case was the result of an investigation by the Drug Enforcement Administration. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Week in Review – HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Michael Radovick, 29, of Gary, Indiana pled guilty to the felony offenses of distribution of cocaine and distribution of cocaine offense committed while on release. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Alcohol, Tobacco and Firearms. Sentencing has been set for 1/23/2015. This case is being prosecuted by Assistant United States Attorney Thomas McGrath.
- Akeem Dillon, 28 of Chicago, Illinois, pled guilty to the felony offense of being a felon in possession of a firearm. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for 1/9/2015. This case is being prosecuted by Assistant United States Attorney Thomas McGrath.
- Roberta Butler, 32, of Valparaiso, Indiana pled guilty to the felony offense of conspiracy to commit mail fraud. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. Sentencing has been set for 12/11/2014. This case is being prosecuted by Assistant United States Attorney Toi Houston.
- Marlon Carr, 21, of Gary, Indiana pled guilty to the felony offense of being a felon in possession of a firearm. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for 1/8/2015. This case is being prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITION
- Chauncey Hackett, Jr, 23, of East Chicago, Indian was sentenced to 18 months imprisonment followed by 1 year of supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, in February 2014, Hackett fled police and dropped a semi-automatic pistol, which had previously been reported stolen, as he fled. Following a short pursuit, Hackett was arrested and the firearm was recovered. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Dean Lanter.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Joseph R. Topp, 21, of Angola, Indiana was sentenced to 60 months imprisonment with 5 years supervised release after pleading guilty to the felony offense of distribution of material involving sexual exploitation of minors. According to documents filed in this case, a law enforcement agent, working in an undercover capacity, signed into an online publically available network via a file sharing program. The federal agent proceeded to browse shared directories and observed several video files being shared. Several of the titles were indicative of child pornography. During the course of the investigation, the federal agent utilized a program in order to identify the location of the user. A search warrant was executed that led to an interview of Topp, who admitted to using P2P (Peer to Peer) file sharing programs for several year. This case was the result of an investigation by the Federal Bureau of Investigation Cyber Crime Task Force. This case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
- Deandre Banks, 24, of Fort Wayne, Indiana was sentenced to time served for term of imprisonment with 3 years supervised release and to pay $87,000 in restitution after pleading guilty to the felony offense of bank fraud. According to documents filed in this case, an investigation conducted by the Internal Revenue Service revealed that from in or about July 2013 to in or about August 2013, Banks executed a scheme to commit bank fraud. This case was the result of an investigation by the Internal Revenue Service. This case was prosecuted by Assistant United States Attorney Lovita Morris-King.
- James B Nelson, 32, of Fort Wayne, Indiana was sentenced to 108 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of possession with intent to distribute lysergic acid diethylamide (LSD), ethylenedioxymethamphetaime and ketamine. According to documents filed in this case, law enforcement agencies were alerted to Nelson using postal services to ship drugs nationwide. After a search warrant was issued, Nelson’s residence was searched and items recovered included a hydraulic pill press, controlled substances, mailing labels and $123,647.00 in cash. This case was the result of an investigation by the Department of Homeland Security Investigations, United States Postal Inspection Service, the Drug Enforcement Agency, Fort Wayne Police Department, Indiana State Police and the Allen County Police Department. This case was prosecuted by Assistant United States Attorney Tina Nommay.
- Brandon S Keister, 22, of Russell, Kentucky was sentenced to 33 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of stealing a firearm from a licensed dealer. According to documents filed in this case, in September 2012, a bait and tackle gun shop was burglarized. Keister broke into the shop and stole 23 handguns. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Steuben County Sheriff’s Department and the Kendallville Police Department. This case was prosecuted by Assistant United States Attorney Tina Nommay.
Washington, D.C., Felon Sentenced for Using Straw Purchaser to Illegally Acquire FirearmsRead the Press Release
ALEXANDRIA, Va. – Othaniel D. Gaither, 25, of Washington, D.C., was sentenced today to 78 months in prison followed by three years of supervised release, for acquiring an assault rifle and semi-automatic pistol, attempting to evade police during a high speed chase and ramming two law enforcement vehicles.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, and Charles E. Smith, Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga.
Gaither pleaded guilty on July 8, 2014, to being a felon in possession of a firearm. According to court documents, Gaither, who was previously convicted of robbery with a dangerous weapon, utilized a female acquaintance to fraudulently acquire (straw purchase) two firearms from a federal firearms dealer in Northern Virginia. Gaither provided his female companion with over $1,000 which she used to obtain both a semi-automatic AK-47 style rifle and a semi-automatic pistol on his behalf. Following the purchase, Gaither took possession of both firearms.
Gaither, despite being a felon, independently purchased over 125 rounds of ammunition as well as a kit that converts a signal flare device into a handgun that fires 12 gauge shotgun shells. After obtaining the three firearms and ammunition, Gaither, who was being survielled by ATF agents, attempted to evade arrest by traveling at a high rate of speed through a densely populated area. He was ultimately stopped by ATF agents near the Pentagon City Mall in Arlington, Virginia. Upon being pulled over, Gaither first attempted to drive away, when that proved fruitless he intentionally rammed two law enforcement vehicles, effectively totaling them both. Following his ramming of the vehicles, Gaither was arrested and the firearms and ammunition were confiscated. As part of his sentence he was required to forfeit the three firearms he illegally acquired and possessed.
This case was investigated by the Falls Church Field Office of the ATF Washington Field Division. Assistant U.S. Attorney G. Zachary Terwilliger prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-234.
Washington, D.C., Felon Sentenced for Using Straw Purchaser to Illegally Acquire FirearmsRead the Press Release
ALEXANDRIA, Va. – Othaniel D. Gaither, 25, of Washington, D.C., was sentenced today to 78 months in prison followed by three years of supervised release, for acquiring an assault rifle and semi-automatic pistol, attempting to evade police during a high speed chase and ramming two law enforcement vehicles.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, and Charles E. Smith, Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga.
Gaither pleaded guilty on July 8, 2014, to being a felon in possession of a firearm. According to court documents, Gaither, who was previously convicted of robbery with a dangerous weapon, utilized a female acquaintance to fraudulently acquire (straw purchase) two firearms from a firearms dealer in Northern Virginia. Gaither provided his female companion with over $1,000 which she used to obtain both a semi-automatic AK-47 style rifle and a semi-automatic pistol on his behalf. Following the purchase, Gaither took possession of both firearms.
Gaither, despite being a felon, independently purchased over 125 rounds of ammunition as well as a kit that converts a signal flare device into a handgun that fires 12 gauge shotgun shells. After obtaining the three firearms and ammunition, Gaither, who was being survielled by ATF agents, attempted to evade arrest by traveling at a high rate of speed through a densely populated area. He was ultimately stopped by ATF agents near the Pentagon City Mall in Arlington, Virginia. Upon being pulled over, Gaither first attempted to drive away, when that proved fruitless he intentionally rammed two law enforcement vehicles, effectively totaling them both. Following his ramming of the vehicles, Gaither was arrested and the firearms and ammunition were confiscated. As part of his sentence he was required to forfeit the three firearms he illegally acquired and possessed.
This case was investigated by the Falls Church Field Office of the ATF Washington Field Division. Assistant U.S. Attorney G. Zachary Terwilliger prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-234.
Waldorf Armed Career Criminal Exiled to over 17 Years in Prison for Illegal Possession of A GunRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Louis Martin, age 51, of Waldorf, Maryland, today to 210 months in prison, followed by five years of supervised release, for illegal possession of a firearm by a convicted felon. A federal jury convicted Martin on April 9, 2014.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Director in Charge Andrew G. McCabe of the Federal Bureau of Investigation - Washington Field Office and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation - Baltimore Field Office.
According to the evidence presented at Martin’s five-day trial, law enforcement intercepted numerous calls indicating that Martin was attempting to obtain a firearm, planning to commit a robbery, and participating in the re-sale of stolen items. Martin was a previously convicted felon and as a result, was prohibited from possessing a firearm or ammunition. Witnesses testified that the investigation led to the execution of a search warrant at Martin’s residence on April 24, 2013. Martin was interviewed by FBI Special Agents who testified that Martin told them that he believed officers were at his home that morning because he told several people that he had been watching an armored truck and planned on robbing it. Martin also admitted to the agents that he had recently been trying to purchase a gun.
During the course of the search Martin left the residence to go to work. After Martin left, officers searched the second floor master bedroom, and discovered a loaded firearm folded within a stack of jeans in Louis Martin’s closet. Agents testified that they drove to Martin’s place of employment to interview him. When they informed Martin about the firearm recovered from his house, he admitted that he knew the gun was in his bedroom closet when the FBI searched his residence. Martin was arrested on May 1, 2013.
Martin was previously convicted of robbery; armed bank robbery; and bank robbery and use of a firearm in connection with a crime of violence
United States Attorney Rod J. Rosenstein commended the FBI’s Washington and Baltimore Field Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Leah J. Bressack and Deborah A. Johnston, who prosecuted the case.
Two Mercer County, N.J., Men Sentenced to Prison for Conspiring with Former Trenton, N.J., Mayor to Extort BribesRead the Press Release
Sentences Also Consider Separate Extortion, Narcotics Distribution and Weapons Charges
TRENTON, N.J. - Two Mercer County, New Jersey, men were sentenced today for conspiring with the former Mayor of Trenton and others to extort bribes and kickbacks in connection with a Trenton parking garage project, and for unrelated drug charges, U.S. Attorney Paul J. Fishman announced.
Joseph Giorgianni, a/k/a “Jo Jo,” 65, of Ewing Township, New Jersey, and Charles Hall III, 51, of Trenton, were sentenced to 78 and 48 months in prison, respectively. U.S. District Judge Michael A. Shipp imposed the sentences today in Newark federal court.
Giorgianni previously pleaded guilty before Judge Shipp to an indictment charging him with one count of conspiring with former Trenton Mayor Tony F. Mack, 48, Ralphiel Mack, 41, (Tony Mack’s brother) both of Trenton, Hall and others to obstruct interstate commerce by extorting individuals under color of official right in connection with the development of an automated parking garage. Giorgianni also pleaded guilty to one count of extorting individuals under color of official right in connection with the administration of a power washing contract, as well as charges contained in a separate indictment, including one count of conspiracy to distribute and possess with intent to distribute oxycodone and one count of possessing a firearm as a felon.
Hall previously pleaded guilty before Judge Shipp to an information charging him with one count of conspiring to obstruct interstate commerce by extorting individuals under color of official right. Hall also pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute oxycodone.
According to documents filed in this case and statements made in court: Tony Mack, Ralphiel Mack, Hall, and Giorgianni conspired to accept approximately $119,000 in cash and other valuables – actually accepting $54,000 and planning to accept the rest – from two cooperating witnesses. In exchange for the payments, Tony Mack assisted them in their efforts to acquire a city-owned lot on East State Street to develop an automated parking garage. The scheme included a plan for the city of Trenton to sell the lot for far less than one of the cooperating witnesses was willing to pay – diverting $100,000 of the suggested purchase amount as a bribe and kickback payment to Giorgianni and Tony Mack. The mayor authorized and directed a Trenton official responsible for disposition of city-owned land to offer the East State Street lot to one of the witnesses for $100,000, significantly less than the amount originally proposed, so the rest could be taken as a bribe.
The defendants went to great lengths to conceal their corrupt activity and keep Tony Mack “safe” from law enforcement. For example, Giorgianni and Ralphiel Mack acted as intermediaries, or “buffers,” who accepted cash payments for Tony Mack’s benefit.
To conceal the corrupt arrangement, the defendants avoided discussing matters related to the scheme over the telephone. When those matters were discussed, they used code words and aliases, including “Uncle Remus,” which both Giorgianni and Hall regularly used to communicate to Tony Mack that a corrupt payment had been received. The defendants also concealed their activities by holding meetings concerning the corrupt activity away from Trenton City Hall, including a restaurant maintained by Giorgianni known as JoJo’s Steakhouse.
In addition to the parking garage bribe and extortion payments, Giorgianni and Hall admitted their involvement in a narcotics distribution conspiracy with Mary Manfredo, 67, of Lawrenceville, New Jersey, and others from May 2011 to July 2012. Hall said he obtained, in coordination with Giorgianni, 13 prescriptions for oxycodone-based pain medication from a doctor in Nutley, New Jersey, which included a total of 1,560 pills. JoJo’s Steakhouse served as a front where oxycodone pills and drug proceeds were received and distributed.
Also, on July 18, 2012, Giorgianni, a convicted felon, was found in possession of four guns, including three pistols and a pump-action shotgun.
Tony F. Mack and Raphiel Mack, both convicted following a five-week trial in February 2014, were sentenced to serve 58 months in prison and 30 months in prison, respectively.
In addition to the prison terms, Judge Shipp sentenced Giorgianni and Hall each to serve three years of supervised release.
Manfredo pleaded guilty to conspiring with Giorgianni, Hall and others to distribute and possess with intent to distribute oxycodone. Manfredo awaits sentencing.
U.S. Attorney Fishman credited special agents of the FBI’s Trenton Resident Agency, Newark Field Office, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation.
The government is represented by Assistant U.S. Attorneys Eric W. Moran and Matthew J. Skahill of the U.S. Attorney’s Office Special Prosecutions Division in Trenton and Camden, respectively.
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Defense counsel: Jerome A. Ballarotto Esq., TrentonTwo Men Sentenced to Prison on Child Pornography ChargesRead the Press Release
CHARLOTTE, N.C. – On Tuesday, September 23, 2014, Chief U.S. District Judge Frank D. Whitney sentenced George Beall to 78 months in prison on federal child pornography charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Beall was also ordered to register as a sex offender and to serve the rest of his life under court supervision after he is released from prison. Judge Whitney also ordered Beall to pay $66,000 as restitution to eleven separate victims of child pornography.
Also on Tuesday, Judge Whitney sentenced Richard Lee Miller to 78 months in prison on federal child pornography charges. Miller was also ordered to register as a sex offender and to a lifetime of supervised release.
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, Charlotte Division.
In June 2013, Beall, 68, of Matthews, N.C. pleaded guilty to one count of possessing child pornography. According to filed documents and statements made in court, in May 2011, law enforcement became aware of Beall’s collection of child pornography after it was discovered by computer repair technicians. Court documents indicate that law enforcement later seized additional computer equipment pursuant to a search warrant. Court records indicate that a forensic examination revealed that Beall possessed thousands of images and videos which included 96 different children already identified by law enforcement as victims of child pornography.
Beall has been in federal custody since his bond was revoked in June 2013. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
In August 2013, Miller, 63 of Charlotte, N.C. pleaded guilty to one count of possessing child pornography. According to filed documents and statements made in court, in March 2012, law enforcement were alerted to Miller’s collection of child pornography after it was discovered by computer repair technicians. According to court records, law enforcement later seized additional computer equipment from Miller’s residence. Court records indicate that a forensic examination revealed that Miller possessed thousands of images and videos which included eight different children already identified by law enforcement as victims of child pornography.
Miller has been in federal custody since his bond was revoked in August 2013. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
Both investigations were handled by the FBI. Assistant U.S. Attorneys Cortney S. Randall and David A. Thorneloe prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Two Inland Empire Men Ordered Held Without Bond After Being Charged in Federal Case Alleging Series of ATM RobberiesRead the Press Release
RIVERSIDE, California – Two men were charged today with participating in a string of ATM robberies in which they used power tools and a truck to forcibly open safes inside drive-up ATMs and steal nearly a half million dollars.
James William Costilow, 38, of Riverside, and David Joseph Silva Jr., 25, of Fontana, were charged today in a criminal complaint filed in United States District Court with attempted theft from a bank.
The charge relates to an unsuccessful ATM robbery early Tuesday morning in Murrieta, but the affidavit in support of the complaint alleges that the two men “have been successful in approximately four incidents and have stolen approximately $462,093 in cash.”
The attempted theft charge in the complaint stems from an incident in which Costilow and Silva allegedly went to a Chase Bank branch in Murrieta, used a pass code to trigger an audit of the ATM cash supply, and, once money was delivered to the machine, attempted to break into the safe to steal the money. After attempting to cut the hinges on the safe doors, they tried to pull the doors off with a truck, but the attempt failed when the bumper came off the truck, according to the affidavit.
Murrieta Police officers responded to the incident and took Costilow and Silva into custody after a short chase. They were held in local custody until yesterday, when they were turned over to federal authorities.
The affidavit describes how Costilow and Silva allegedly broke into ATM safes: “A type of power saw or a ‘jaws of life’ device is used to cut into the safe doors. Once the safe doors are weakened, a nylon towrope is tied to the safe door and to the truck. The truck attempts to pull the safe door off, enabling access to the money.”
There have been 15 thefts and attempted thefts from drive-up ATMs at Chase Bank branches in Los Angeles, Riverside and San Bernardino Counties over the past six months. The affidavit states that investigators believe Costilow and Silva were involved in all 15 incidents.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
Costilow and Silva made their initial court appearances earlier this afternoon in United States District Court, where a magistrate judge ordered them held without bond and scheduled an arraignment for October 15.
The charge of attempted bank theft carries a statutory maximum sentence of 10 years in federal prison.
This case is the product of an ongoing investigation by the Federal Bureau of Investigation and the Murrieta Police Department.
Release No. 14-130
Two Indicted for Alleged Conspiracy to Sell Weapons Supposedly Owned by Family of Saddam HusseinRead the Press Release
NEWARK, N.J. - A federal grand jury in Newark returned an indictment today charging two men with conspiring to sell seven firearms in New Jersey believed to have been stolen and smuggled out of Iraq after once belonging to the family of Saddam Hussein, U.S. Attorney Paul J. Fishman announced.
David Phillip Ryan, 50, of Miami, Florida, and Carlos Quirola-Ordonez, a/k/a “Julio Antonio Gonzalez,” a/k/a “Manny,” 57, of New Milford, New Jersey, are each charged with one count of conspiring to transport stolen firearms. Ryan is also charged with one count of transporting stolen property in interstate commerce.
According to the indictment and other documents filed in Newark federal court:
In April 2012, law enforcement received information that valuable firearms allegedly belonging to members of the family of the late Iraqi president Saddam Hussein were available for sale. The weapons were kept in Florida while attempts were made by Ryan, Quirola-Ordonez and others to find buyers in New Jersey. During the course of the conspiracy, seven firearms – which were appraised as a collection to be worth between $250,000 to $350,000 – were shipped to New Jersey for viewing by potential buyers.
Federal law enforcement officers seized the following firearms in the course of the investigation:
- One Coonan Arms Inc., .357 semi-automatic pistol, nickel finish, made in St. Paul, Minn., with gold inlay and a medallion “QS” on left side grip (believed to be the initials of Qusay Saddam Hussein al-Tikriti, the second son of former Iraqi President Saddam Hussein);
- One Korth, .357 magnum revolver (six shot) stamped “Made in W. Germany Waffenfabrik Koth Ratzeburg/LBG,” with gold inlay, black finish, wood grips, which displays a drawing of a wild boar;
- One Korth, .357 magnum, revolver (six shot) stamped “Made in W. Germany Waffenfabrik Koth Ratzeburg/LBG,” with gold inlay, black finish, wood grips, which displays a drawing of a moose;
- One Chinese State Factories type 64 pistol, .32 caliber semi-auto pistol, black finish, with Yemen flag icon on both sides of grip and Arabic writing on the slide;
- Two Cosmi, 12 gauge shotguns, break top, single barrel;
- One Llama Semiautomatic .45 ACP pistol with gold leaf and gold inlays, hand engraved, bearing the initials “QS”
The conspiracy count carries a maximum potential penalty of five years in prison and a $250,000 fine. The unlawful transportation of stolen property in interstate commerce count with which Ryan is also charged carries a maximum penalty of 10 years in prison and a $250,000 fine.
Four men, including Ryan and Quirola-Ordonez, were originally charged by complaint with related offenses. The two other individuals, Howard Blumenthal and Karlo Sauer, have pleaded guilty to their roles in this conspiracy and await sentencing.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of George P. Belsky; and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees, with the investigation leading to the charges.
The government is represented by Joyce M. Malliet of the U.S. Attorney’s Office National Security Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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Defense counsel:
David Philip Ryan: Michael V. Gilberti Esq., Red Bank, New Jersey
Carlos Manuel Quirola-Ordonez: Miles Feinstein Esq., Clifton, New JerseyRyan, David Phillip and Quirola-Ordonez, Carlos Indictment
Two District Men Sentenced to Prison Terms for Armed Robberies in Northwest WashingtonPair of Attacks Took Place Within Nine-Day Period; Victims Accosted While Returning to Their HomesRead the Press Release
WASHINGTON – Lamont Lamar Buskey, 34, was sentenced today to 16 ½ years in prison, and Keith Allen Simms, 41, was sentenced to a 12 ½-year prison term, for a pair of armed robberies that took place within a nine-day period in 2013 in the Columbia Heights area of Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Buskey and Simms, both of Washington, D.C., were found guilty by a jury in May 2014 of 11 charges each, following a trial in the Superior Court of the District of Columbia. Each was found guilty of one count of conspiracy, one count of first-degree burglary while armed, one count of second-degree burglary, two counts of armed robbery, two counts of robbery, one count of armed kidnapping, two counts of kidnapping, and one count of carrying a dangerous weapon.
They were sentenced by the Honorable John McCabe. Upon completion of their sentences, both men will be placed on a period of five years of supervised release.
According to the government’s evidence, the first attack took place on the afternoon of Sept. 7, 2013. Two sisters - ages 18 and 14 - were returning to the apartment building where they lived with their parents on 14th Street NW, in the Columbia Heights neighborhood, after spending the day together. Buskey and Simms followed them into their secure building after they opened the door with an access key. Buskey and Simms, who were strangers to the sisters, then followed them onto the elevator. When the elevator opened at the floor where the sisters lived, Buskey and Simms blocked them from getting out. Buskey pulled out what appeared to be a can of pepper spray and also threatened to stab the sisters unless they turned over their jewelry.
Buskey and Simms grabbed chains from their victims’ necks while the sisters screamed. Buskey and Simms then robbed the sisters of their rings and bracelets. When the elevator reached the ground floor, Buskey and Simms fled the building from a side door.
The second attack took place on the morning of Sept. 16, 2013. A man was returning to his rowhouse on Warder Street NW after getting breakfast at a local restaurant. He brought his bicycle into the basement level of the rowhouse, leaving the front door ajar. Buskey and Simms entered the building through the open door. Buskey grabbed the victim’s hands, put them behind the victim’s back, and made him lie down on the floor. Buskey then put his hands around the victim’s mouth and pointed a knife to his neck. Simms, meanwhile, went through the victim’s pockets and clothes while Buskey held the victim down.
Buskey and Simms kicked the victim, and Simms took two cell phones, $5, and keys from the victim’s pockets. Buskey grabbed the keys while Simms took over holding the victim down with a knife to the victim’s neck. Buskey then forced his way into another room in the basement, where two additional people lived. These people were asleep when Buskey forced entry into the room. Buskey, armed with a knife, commanded one of the victims to come to the door, and when the victim complied, Buskey snatched a chain from the victim’s neck.
Buskey and Simms sold the proceeds of both offenses to a pawn shop in Maryland.
In announcing the sentence, U.S. Attorney Machen commended the work of the detectives, officers, and crime scene technicians who investigated the case for the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Criminal Investigator Nelson Rhone; Litigation Support Specialist Ron Royal; Paralegal Specialist Debra McPherson, and Victim/Witness Advocate Elsa Resendiz. Finally he thanked Assistant U.S. Attorneys Michelle Parikh and Natalia Medina, who investigated and prosecuted the case.
14-218Two Campaign Workers Admit to Buying Votes in Hidalgo County, Texas, ElectionsRead the Press Release
Two campaign workers pleaded guilty this week in the Southern District of Texas for paying voters to vote in two 2012 elections in Hidalgo County, Texas, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Veronica Saldivar, 42, of Donna, Texas, pleaded guilty today to one count of vote-buying before U.S. District Judge Randy Crane of the Southern District of Texas and is scheduled for sentencing on Dec. 8, 2014. Belinda Solis, 39, also of Donna, pleaded guilty on Sept. 25, 2014, to one count of vote-buying before U.S. District Judge Micaela Alvarez of the Southern District of Texas and is scheduled for sentencing on Dec. 11, 2014.
According to Saldivar’s plea agreement, a primary election was held on May 29, 2012, in Donna for the presidential election, and various state, county, and local offices, including the office of a county commissioner for Hidalgo County. Saldivar assisted in the campaign to elect a candidate to the office of county commissioner. In the course of that work, she paid voters with cash and cocaine for voting in this primary election and for voting for a specific candidate for a county commissioner position.
According to Solis’s plea agreement, a general election was held on Nov. 6, 2012, in Donna, for the presidential election and various state, county, and local offices, including the Donna School Board. Solis assisted in the campaign to elect a slate of four candidates to the Donna School Board. In the course of that work, she paid voters cash for voting in the election and for voting for specific Donna School Board candidates.
This case was investigated by the FBI and is being prosecuted by Trial Attorneys Monique Abrishami and Jennifer Blackwell of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Leo J. Leo of the Southern District of Texas.
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Temple Hills Bank Robber Sentenced to Six Years in PrisonRead the Press Release
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Pierre Ramone Washington, age 29, of Temple Hills, Maryland today to six years in prison followed by three years of supervised release for bank robbery. Chief Judge Chasanow also ordered Washington to pay restitution of $13,861.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Anne Arundel County Police Chief Kevin Davis; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Mark A. Magaw of the Prince George’s County Police Department; Anne Arundel County State’s Attorney Anne Colt Leitess; Montgomery County State’s Attorney John McCarthy; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to his plea agreement, between May 22 and September 26, 2013, Washington committed five bank robberies. In each case, Washington entered the bank and presented the teller with a note demanding money. Washington stole a total of $13,861.Specifically, Washington robbed: the Capital One Bank in the 11000 block of New Hampshire Avenue in Silver Spring, Maryland, on May 22nd, stealing $3,109; the TD Bank in the 700 block of Crane Highway in Glen Burnie Maryland on June 27th, stealing $1,694; the Capital One Bank in the 21000 block of Frederick Road in Germantown, Maryland, on July 24th, stealing $5,700; the Bank of Glen Burnie in the 1200 block of Generals Highway in Crownsville, Maryland, on September 17th, stealing $2,298; and the SunTrust Bank in the 4600 block of Old Branch Avenue in Temple Hills, Maryland, on September 26th, stealing $430.
United States Attorney Rod J. Rosenstein praised the FBI, Anne Arundel County Police Department, Montgomery County Police Department, Prince George’s County Police Department, and the Anne Arundel, Montgomery and Prince George’s County State’s Attorneys’ Offices for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Nicolas A. Mitchell and Deborah A. Johnston, who prosecuted the case.
St. Petersburg Man Pleads Guilty to Sex Trafficking ChargesRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Derrick L. Hayes, a/k/a “D-Man,” (27, St. Petersburg) pleaded guilty yesterday to one count of conspiracy to engage in sex trafficking of children by force or coercion, and two counts of sex trafficking of children by force or coercion. He faces a maximum penalty of life in federal prison on each count. Hayes also must register as a sex offender. His sentencing hearing has been set for December 12, 2014.
According to court documents, in December 2012 and January 2013, Hayes conspired with his girlfriend, Keosha Renee Jones, to arrange for two 14-year-old victims to engage in commercial sex acts in St. Petersburg. After meeting the victims, Hayes took them to a residence and directed them to engage in sex acts with his associates. With Hayes’ knowledge, Jones also took the victims to a hotel in St. Petersburg, where the victims engaged in additional sex acts for money. Hayes visited the hotel regularly, collected the proceeds from the sex acts, and directed the victims to engage in additional sex acts with his associates. Hayes also beat and threatened Jones in the victims’ presence, and threatened the victims.
On September 19, 2013, Jones pleaded guilty to her role in the conspiracy. She is awaiting sentencing.
This case was investigated by the Federal Bureau of Investigation, the Clearwater Police Department, the St. Petersburg Police Department, and the Largo Police Department. It is being prosecuted by Assistant United States Attorneys Joseph W. Swanson and Stacie B. Harris.
It is another case 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.