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26 September 2014
Shreveport Man Pleads Guilty to Possessing an Assault Rifle after being Convicted of FeloniesRead the Press Release
SHREVEPORT, La. –A Shreveport man pleaded guilty Thursday to possessing an assault rifle and ammunition after being convicted of multiple felonies, U.S. Attorney Stephanie A. Finley announced.
Cori Yarborough, 40, of Shreveport, pleaded guilty Thursday before U.S. District Judge Elizabeth E. Foote to one count of possession of a firearm by a convicted felon. According to evidence presented at the guilty plea, Shreveport Police responded to a complaint on May 3, 2014 that someone was driving in a van with an assault rifle. They stopped Yarborough’s vehicle and found a Colt rifle, model M4, .223 caliber, and ammunition. After examining the rifle, police found that it had been reported stolen. Yarborough has multiple felonies including simple robbery in 1992, aggravated battery in 1997, and attempted burglary of an inhabited dwelling in 2012.
Yarborough faces 10 years in prison, and if the court finds he qualifies as an armed career criminal based on his prior record, he could face a mandatory 15 years in prison. He also faces three years of supervised release and a $250,000 fine. A sentencing date of January 30, 2015 was set.
This case is part of Project Safe Neighborhoods, which is a Department of Justice initiative designed to reduce firearm crimes by removing dangerous and persistent felons from the community and promote firearm safety.
The ATF and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney James G. Cowles Jr. is prosecuting the case.
Saltwater Disposal Well Operator Pleads Guilty to Multiple Felony Charges in Connection with Operation of WellRead the Press Release
Nathan R. Garber, 45, of Kalispell, Montana, pleaded guilty in federal court in Bismarck to eleven felony charges stemming from the operation of a saltwater disposal well near Dickinson, in Stark County, North Dakota, the Justice Department announced.
Garber pleaded guilty to one count of conspiracy to violate the Safe Drinking Water Act and defraud the United States. He also pleaded guilty to five counts of violating the Safe Drinking Water Act, two counts of making false statements, two counts of falsification of records and one count of concealment or cover up of a tangible object.
The well, named the Halek 5-22, received “produced water” constituting “brine and other wastes” commonly and generically referred to as “saltwater.” “Saltwater” in this context covers a wide array of drilling waste fluids, including hydraulic fracturing fluid, which is water combined with chemical additives such as biocides, polymers and “weak acids.” The EPA has stressed that this water is often saltier than seawater and can “contain toxic metals and radioactive substances.”
“Every aspect of domestic energy extraction, including the disposal of wastewater, must accord with the nation’s environmental laws that protect air, water and soil from contamination,” said Sam Hirsch, the Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “The American people expect nothing less than safe, responsible and legal behavior from those involved in oil and gas development in the Bakken and elsewhere. The Justice Department will vigorously prosecute those who violate this trust and the law.”
“The convictions secured today on 11 felony counts underscores the seriousness of the conduct here,” said U.S. Attorney Timothy Purdon of the District of North Dakota. “Any time anyone in the Bakken oil boom region puts our water supplies at risk for contamination by intentionally breaking the laws in place to protect that water, the North Dakota U.S. Attorney’s Office, the Department of Justice and our partners at Environmental Protection Criminal Investigation Division will use every tool at our disposal to ensure that these offenders are brought to justice. I want to particularly commend the Environmental Protection Agents based in Helena, Montana who worked this case. Their commitment to this investigation, despite the fact that it being an eight hour one-way drive from their office, never wavered. Their commitment to make sure that this complex investigation was handled with the professionalism and skill it needed deserves special recognition and underscores the importance of ensuring that the Bakken region has access to these skilled Agents on a permanent basis.”
“As oil and natural gas development continues, it must be done in a way that ensures drilling byproducts are disposed of safely and legally,” said Special Agent in Charge Jeffrey Martinez of EPA’s criminal enforcement program in North Dakota. “The defendant’s disregard of environmental regulation under the Safe Drinking Water Act put human health and the environment at serious risk. Today’s plea demonstrates that EPA and its law enforcement partners are committed to protecting North Dakota’s precious water sources and the communities that rely upon them.”
According to an agreed-upon factual statement filed in court, Garber admitted to conspiring with others in a number of coordinated and illegal acts. For instance, Garber injected saltwater into the well without first having the state of North Dakota witness a test of the well’s integrity, causing a regulator to determine that there was no assurance as to the integrity of the well and that “the fluid could be going anywhere.” Garber also violated a February 2012 order from the state to stop injecting until a well integrity test was done. When questioned by the state about these injections, Garber made false statements in a March 6, 2012 email where he denied that these injections occurred.
The well failed a pressure test on Feb. 2, 2012, and Garber continued to inject saltwater even though he knew that the well did not have integrity and thus posed an increased risk of contaminating ground water.
Further, Garber moved a device called a “packer” up the wellbore in violation of the well’s permit, without first getting approval from the state. A properly placed packer is an essential device to maintaining integrity of the well and ensuring wastewater does not escape into surrounding soil and groundwater.
Then, Garber gave false information to a state inspector regarding the depth of the packer.
A search warrant was executed at the well on Nov. 20, 2013, and it was confirmed that the packer had been moved up in the wellbore and was significantly higher than the depth that had been initially represented by Garber. Despite illegally moving the packer on Feb. 14, 2012, Garber continued to inject saltwater into the well until on or about March 5, 2012, when a state employee shut the well in.
The case was investigated by the U.S. Environmental Protection Agency’s Criminal Investigation Division. Significant cooperation was provided by the North Dakota Industrial Commission (NDIC). The case is being prosecuted by the United States Attorney’s Office for the District of North Dakota and the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.
Rockport Woman Charged with Embezzlement by A Postal Service EmployeeRead the Press Release
EVANSVILLE - Josh J. Minkler, Acting United States Attorney, announced today that Brittney L. Thorpe, 26, of Rockport, was charged with embezzlement by a Postal Service employee following an investigation by the United States Postal Service, Office of Inspector General.
“Federal employees serve the public, not the other way around,” said Minkler. “Anyone who violates the public trust will be held accountable for their actions.”
The Information alleges that between December 6, 2013 and February 1, 2014, Thorpe, while working as a Postal Service employee of the Richland, Indiana, Post Office, took Postal Service money orders and used them to obtain funds to pay her personal living expenses. The loss to the Postal Service is approximately $5,286.
According to Assistant U.S. Attorney Kyle M. Sawa, who is prosecuting the case for the government, Thorpe faces a maximum of 10 years in prison and a $250,000 fine. An initial hearing will be scheduled in Evansville before a U.S. Magistrate Judge.
An Information is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Rochester Woman Pleads Guilty to Wire Fraud ConspiracyRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Nancy Cedeno, 40, of Rochester, NY, pleaded guilty before U.S. District Judge David G. Larimer, to conspiring to commit wire fraud. The charge carries a maximum penalty of 20 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Marisa J. Miller, who handled the case, stated that the defendant used online, e-commerce sites, including eBay.com and Amazon.com, to sell stolen merchandise to unwitting buyers. Cedeno used Rochester Consignment Broker, a consignment business in Rochester that she owns with her husband Brian Leonard, to purchase goods and merchandise that she knew to be stolen. The couple then advertised and sold or attempted to sell the items to buyers online, all while falsely representing that they had lawful ownership of the goods.
Charges against Brian Leonard are pending. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea was the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, and members of the Rochester Police Department under the direction of Chief Michael Ciminelli.
Sentencing is scheduled for December 17th, at 2:00 p.m. before Judge Larimer.Rio Rancho Man Pleads Guilty to Robbing Two Bank of Albuquerque Branches in July 2014Read the Press Release
ALBUQUERQUE – Joshua Abeyta, 21, of Rio Rancho, N.M., pleaded guilty today to two bank robbery charges.
Abeyta was arrested on July 10, 2014, on a criminal complaint charging him with robbing two Bank of Albuquerque branches located in Albertson’s supermarkets. Abeyta was charged with robbing the first bank branch, located at 4300 Ridgecrest Drive SE in Rio Rancho, on June 30, 2014, and the second, located at 10131 Coors Boulevard NW in Albuquerque, N.M., on July 8, 2014.
On July 24, 2014, Abeyta and a co-defendant, Angelica Donna Casados, 26, also of Rio Rancho, were indicted on July 24, 2014, and charged with two counts of bank robbery. Casados was arrested on July 29, 2014.
According to the court filings, Abeyta robbed the first bank branch on June 30, 2014, by presenting a bank teller with a note that included a warning that someone would get hurt if the teller did not comply with his demand for cash. Abeyta fled from the supermarket after obtaining cash from the teller. On July 8, 2014, Abeyta approached a bank teller at the second bank and again obtained cash from the teller after presenting a note demanding cash. Casados allegedly aided and abetted Abeyta in robbing the two bank branches.
During today’s hearing, Abeyta entered a guilty plea to the indictment and admitted robbing the two bank branches. He has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Abeyta faces a statutory maximum penalty of 20 years in prison.
Casados has entered a not guilty plea to the charges in the indictment and is scheduled for trial on Nov. 17, 2014. Charges in the indictment are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Albuquerque office of the FBI with assistance from the Rio Rancho Police Department and is being prosecuted by Assistant U.S. Attorney Kimberly A. Brawley.
Ringleader Jason Vitulano Pleads Guilty in Loan Modification Fraud Scheme Case & Scheme Managers SentencedRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, and Ronald J. Verrochio, Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, announce that Jason Vitulano, 39, of Boca Raton, pled guilty before U.S. District Judge Kenneth Marra to charges of conspiracy to commit mail fraud and wire fraud, and mail fraud, in violation of Title 18, United States Code, Sections 1349 and 1341.
Nine of the ten defendants charged in this case have now entered guilty pleas to the charges, which involved a scheme to bilk thousands of homeowners who were struggling to make their mortgage payments. Jeffrey Taylor, 40, North Lauderdale, is currently set for trial starting on November 10, 2014. Today, Judge Marra also sentenced two of the defendant managers, Neil Sack, 40, of Fort Lauderdale, and Brian Fleuridor, 30, of Delray Beach, to 30 months and 27 months in prison, respectively, to be followed by two years of supervised release.
Sentencing for defendant Vitulano is scheduled for December 5, 2014 in West Palm Beach. Vitulano faces up to 20 years in prison as to each of the two counts, plus fines of up to $250,000 or twice the pecuniary loss, as to each count.
According to the indictment and other documents filed in the case, between September 2008 and August 2009, the defendants operated boiler rooms that collected advance fees from distressed homeowners purportedly in exchange for obtaining loan modifications for the homeowners which were, with few exceptions, never provided.
The indictment alleges that defendant Vitulano was the organizer and operator of FHA All Day.com, Inc. and two other companies, Housing Assistance Law Center, Inc. and Safety Financial Corp., which operated the boiler rooms in Boca Raton and later in Deerfield Beach. According to the indictment and the factual proffers submitted in support of the guilty pleas, Robert Bacon was an operations manager who wrote and edited sales scripts, while the other eight defendants served as team managers of four to eight telemarketers who made thousands of phone calls to homeowners behind on their mortgage payments.
As alleged in the indictment, the defendants made numerous false statements to the homeowners including telling homeowners they had already been approved or pre-approved for a loan modification that would save the homeowner a specific amount off their mortgage payment, reducing the interest rate and often the principal balance on the mortgage loan. The defendants, according to the indictment, routinely told customers that they had been approved by an “underwriter” and that they had a team of “expert attorneys” who would finalize the loan modifications.
The indictment further alleges that the defendants targeted homeowners across the country who were facing foreclosure, falsely telling them that the company would stop the foreclosure process and that homeowners could stop making mortgage payments while they waited for the company to finalize their loan modifications. FHA All Day, as alleged in the indictment, moved its offices and changed the corporate name several times to avoid law enforcement scrutiny and to hamper consumer complaints. Through the use of these and other false representations, the defendants, according to the indictment, induced over 2,000 distressed homeowners to pay up front fees totaling approximately seven million dollars to the defendants.
Mr. Ferrer commended the investigative efforts of USSS and USPIS. This case is being prosecuted by Assistant U.S. Attorney Lauren Jorgensen.
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.
Ringleader in UPC Switching Fraud Scheme Sentenced to Five Years in Federal PrisonRead the Press Release
Tampa, FL – U.S. District Judge James D. Whittemore has sentenced Robert James Mercer (46, Tampa) to five years in federal prison for conspiracy to commit wire fraud. The Court also entered a money judgment in the amount of $130,000, which represents the proceeds of the conspiracy. Mercer pleaded guilty on June 19, 2014. He was sentenced on September 23, 2014.
According to court documents, from at least November 2013 through April 4, 2014, Mercer, along with his co-defendants and others, traveled to Wal-Mart stores in Florida, Alabama, Mississippi, Colorado, Texas, and elsewhere for the purpose of defrauding the retailer.
To facilitate the fraud, the co-conspirators, primarily Mercer, purchased prepaid debit cards from Green Dot and Wal-Mart using cash. By purchasing these prepaid cards at Wal-Mart, the conspirators received legitimate merchandise receipts showing high value cash purchases. The conspirators then altered these original receipts to make them appear as if they had resulted from a merchandise purchase. The fake receipts were then used to return items for cash.
In order to obtain the items, the conspirators purchased high value merchandise using counterfeited or altered Universal Product Codes (UPC). For example, with an altered UPC code, a whole-house water filtration system, which normally sold for hundreds of dollars, would ring up for $19. The conspirators then returned the items to a different Wal-Mart store, using a counterfeited receipt, and obtained cash refunds for the actual retail price of the items.
The co-conspirators in this case confirmed that Mercer supervised them, controlled the proceeds of the fraud, and paid the others for their roles in this scheme. The loss to Wal-Mart is estimated at almost $200,000.
Four others were also charged in this case. Luis Schomaker was charged by a criminal complaint with conspiracy to commit wire fraud. Co-conspirators David Dunn, Sandra Walker, and Michael Odhiambo have each pleaded guilty to conspiracy to commit wire fraud and will be sentenced at a later date.
This case was investigated by the United States Secret Service and the Pinellas County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Mandy Riedel.
Press AdvisoryRead the Press Release
U.S. ATTORNEY GOODWIN, U.S. MARSHAL FOSTER AND OFFICIALS WITH STATE POLICE TO ANNOUNCE RESULTS OF SEX OFFENDER REGISTRY CHECKS IN KANAWHA COUNTY
Charleston, W.Va. – U. S. Attorney Booth Goodwin will join U.S. Marshal John Foster and West Virginia State Police officials to announce the results of a sex offender registry check operation in Kanawha County.
WHERE: U.S. Marshal’s Office
Robert C. Byrd Courthouse
300 Virginia Street East
Charleston, WVWHEN: 10 A.M., FRIDAY, SEPTEMBER 26, 2014
Click here to view the Press Conference Announcement
Pittsburgh Jeweler Sentenced for Evading Federal Currency Reporting RequirementsRead the Press Release
PITTSBURGH - A Pittsburgh resident has been sentenced in federal court to three years of probation, six months home confinement, and 100 hours of community service, on his conviction of failing to file a report of currency received by a non-financial business, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Efraim Tuti, 42.
According to information presented to the court, Tuti, who was engaged in the jewelry business known as 2T Jewelers on Fifth Avenue in Pittsburgh, for the purpose of evading federal reporting requirements, failed to file an Internal Revenue Service Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, following the receipt of approximately $11,000 in currency as partial payment for a diamond ring purchased by an undercover IRS agent for a total of $22,000. Tuti acknowledged during the plea hearing that he also sold a $13,000 pair of earrings to the undercover agent, after which he failed to file the IRS Form 8300, as required. On Feb. 22, 2013, $125,070 was seized by the IRS during the execution of a search warrant at 2T Jewelers. Tuti agreed to forfeit the money to the United States as part of his entry of a guilty plea.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service, Criminal Investigation for the investigation leading to the prosecution of Tuti.
Pine Lawn Mayor Arrested on Charges of ExtortionRead the Press Release
St. Louis, MO – The mayor of Pine Lawn, Missouri, SYLVESTER CALDWELL, has been arrested as a result of an indictment charging him with extortion of cash payments from the owner of a local towing company.
Caldwell, Pine Lawn, was indicted by a federal grand jury on one felony count of interference with commerce by extortion. He was arrested by FBI agents Thursday. He appeared in court late yesterday afternoon and was released on bond. Caldwell is scheduled for arraignment Monday, September 29, at 9:30 a.m.
According to the indictment, Mayor Caldwell exercised authority over which towing companies provided the towing services for the City of Pine Lawn. The indictment alleges that between December 2013 and April 2014, Caldwell extorted cash payments from the owner of one local towing company, referred to in the indictment as "John Doe," in exchange for directing the Pine Lawn Police Department to use Doe’s towing company.
If convicted, this charge carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Philadelphia Man Charged with Theft of Government FundsRead the Press Release
Felix R. Pinero, 62, of Philadelphia, Pennsylvania, was charged today by Information with one count of theft of Government funds, and one count of social security fraud, announced United States Attorney Zane David Memeger. The information alleges that from in or about November 1986 to in or about August 2011, Felix R. Pinero implemented a scheme to defraud the Social Security Administration by concealing that he was working and later receiving disability benefits while simultaneously receiving additional disability benefits under a different name and social security number for a period of almost 25 years, resulting in total losses to the government of approximately $117,135.25.
If convicted the defendant faces a maximum possible sentence of fifteen years incarceration, a $500,000 fine, three years supervised release, and restitution of $117,135.25.
The case was investigated by the Social Security Administration’s Office of the Inspector General and is being prosecuted by Special Assistant United States Attorney Thomas Moshang III.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to read the informationUNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICT of PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Owner of Atlanta Income Tax Preparation Firm Sentenced for Nearly $7 Million Refund FraudRead the Press Release
ATLANTA - Anita R. Ford, a/k/a Anita R. Dixon, has been sentenced to four years and three months in prison for preparing and filing approximately $7 million worth of fraudulent personal income tax returns.
“This defendant filed thousands of fraudulent tax returns with the IRS over five years, seeking millions of dollars in fraudulent refunds from the U.S. Treasury,” said United States Attorney Sally Quillian Yates. “On one of those occasions, the taxpayer was not her client, but was instead an undercover IRS agent. This conviction should make abusive return preparers think twice before attempting to rob the U.S. Treasury.”
“IRS special agents work year round to investigate and root out dishonest return preparers,” stated IRS Criminal Investigation, Special Agent in Charge, Veronica F. Hyman-Pillot. “The message this case sends is that participation in refund fraud schemes does not pay and those who do will be prosecuted. Ms. Ford violated the confidence of her clients, stole from the American taxpayer and today she is being held responsible for her actions.”
According to United States Attorney Yates, the charges and other information presented in court: Between 2004 and 2012, Ford owned and operated Georgia Peach Financial & Fast Tax Service (“Georgia Peach”), an Atlanta, Ga., personal income tax preparation business. During that time Ford prepared and electronically filed (“e-filed”) thousands of Form 1040 individual income tax returns with the IRS that intentionally misstated her clients’ income in order to generate fraudulent refunds. In particular, Ford made up fake side businesses with fake income and fake expenses, and then attached false Schedule C’s (“Profit or Loss from Business”) to the clients’ tax returns showing the made up income and expenses. This had the effect of off-setting her clients’ income tax liability from their real salaries, as reflected in Forms W2 (“Wage & Tax Statement”) issued by their real employers, generating false credits and refunds.
In March 2011, a Special Agent of IRS-CI visited Georgia Peach in an undercover capacity, posing as a taxpayer seeking to have a return prepared. Ford began preparing a tax return in the agent’s cover identity, based on a Form W2 in the cover identity, and informed the agent that they would owe approximately $200. In truth, the agent would have been due a refund of almost $400. Ford then created a fictitious Schedule C for a fake beauty salon business, with $30,000 in fake business expenses, generating a fraudulent refund of over $4,000, and e-filed the completed tax return with the IRS. To prepare and e-file the return, Ford charged a fee of $510. Ford did not provide a copy of the tax return to the undercover agent or review it with the undercover agent before e-filing it.
The returns identified in the scheme sought fraudulent refunds ranging from several thousand dollars to tens of thousands of dollars, including at least one fraudulent refund of more than $30,000. The returns sought a total of $6,934,337.92 in fraudulent refunds for Ford’s clients, portions of which Ford retained as tax preparation fees.
Ford, 50, of Jonesboro, Ga., was sentenced by U.S. District Judge Timothy C. Batten, Sr., to four years, three months in federal prison to be followed by two years of supervised release, and ordered to pay restitution to the United States Treasury in the amount of $5,732,021.50. Ford was convicted of these charges on December 3, 2013, after she pleaded guilty.
This case was investigated by Special Agents of IRS-Criminal Investigation.
Assistant United States Attorney David M. Chaiken prosecuted the case.
The IRS would like to remind people that while most preparers provide excellent service to their clients, the IRS urges taxpayers to be very careful when choosing a tax preparer. Taxpayers should be as careful as they would be in choosing a doctor or a lawyer. It is important to know that even if someone else prepares a tax return, the taxpayer is ultimately responsible for all the information on the tax return.
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/.
Orlando Man Sentenced to More Than 10 Years for Cocaine TraffickingRead the Press Release
Tampa, Florida – U.S. District Judge Richard A. Lazzara today sentenced Gerald Robinson (41, Orlando) to ten years and one month in federal prison for conspiring with others to distribute cocaine. He pleaded guilty on May 30, 2014.
According to court documents and evidence presented at sentencing, Robinson was a kilogram-level cocaine distributor in the Orlando area. In 2010 and 2011, he distributed approximately 40 kilograms of cocaine. Robinson’s source of supply, Earl Hampton, was previously convicted as part of this investigation. He was sentenced to 30 years’ imprisonment by U.S. District Judge Susan C. Bucklew on June 19, 2013.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Metropolitan Bureau of Investigation, with assistance from the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement's Homeland Security Investigations, the Clearwater Police Department, and the Lee County Sheriff's Office, as part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation's illegal drug supply. The case was also investigated as part of ATF’s Frontline Strategy. It was prosecuted by Assistant United States Attorney Christopher F. Murray.
Operator of Saltwater Disposal Well Pleads Guilty to Multiple Felony Charges in Connection with Operation of the WellRead the Press Release
WASHINGTON – Nathan R. Garber, 45, of Kalispell, Montana, pleaded guilty in federal court in Bismarck to eleven felony charges stemming from the operation of a saltwater disposal well near Dickinson, in Stark County, North Dakota, the Justice Department announced.
Garber pleaded guilty to one count of conspiracy to violate the Safe Drinking Water Act and defraud the United States. He also pleaded guilty to five counts of violating the Safe Drinking Water Act, two counts of making false statements, two counts of falsification of records and one count of concealment or cover up of a tangible object.
The well, named the Halek 5-22, received “produced water” constituting “brine and other wastes” commonly and generically referred to as “saltwater.” “Saltwater” in this context covers a wide array of drilling waste fluids, including hydraulic fracturing fluid, which is water combined with chemical additives such as biocides, polymers and “weak acids.” The EPA has stressed that this water is often saltier than seawater and can “contain toxic metals and radioactive substances.”
“Every aspect of domestic energy extraction, including the disposal of wastewater, must accord with the nation’s environmental laws that protect air, water and soil from contamination,” said Sam Hirsch, the Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “The American people expect nothing less than safe, responsible and legal behavior from those involved in oil and gas development in the Bakken and elsewhere. The Justice Department will vigorously prosecute those who violate this trust and the law.”
“The convictions secured today on 11 felony counts underscores the seriousness of the conduct here,” said U.S. Attorney Timothy Purdon of the District of North Dakota. “Any time anyone in the Bakken oil boom region puts our water supplies at risk for contamination by intentionally breaking the laws in place to protect that water, the North Dakota U.S. Attorney’s Office, the Department of Justice and our partners at Environmental Protection Criminal Investigation Division will use every tool at our disposal to ensure that these offenders are brought to justice. I want to particularly commend the Environmental Protection Agents based in Helena, Montana who worked this case. Their commitment to this investigation, despite the fact that it being an eight hour one-way drive from their office, never wavered. Their commitment to make sure that this complex investigation was handled with the professionalism and skill it needed deserves special recognition and underscores the importance of ensuring that the Bakken region has access to these skilled Agents on a permanent basis.”
“As oil and natural gas development continues, it must be done in a way that ensures drilling byproducts are disposed of safely and legally,” said Special Agent in Charge Jeffrey Martinez of EPA’s criminal enforcement program in North Dakota. “The defendant’s disregard of environmental regulation under the Safe Drinking Water Act put human health and the environment at serious risk. Today’s plea demonstrates that EPA and its law enforcement partners are committed to protecting North Dakota’s precious water sources and the communities that rely upon them.”According to an agreed-upon factual statement filed in court, Garber admitted to conspiring with others in a number of coordinated and illegal acts. For instance, Garber injected saltwater into the well without first having the state of North Dakota witness a test of the well’s integrity, causing a regulator to determine that there was no assurance as to the integrity of the well and that “the fluid could be going anywhere.” Garber also violated a February 2012 order from the state to stop injecting until a well integrity test was done. When questioned by the state about these injections, Garber made false statements in a March 6, 2012 email where he denied that these injections occurred.
The well failed a pressure test on Feb. 2, 2012, and Garber continued to inject saltwater even though he knew that the well did not have integrity and thus posed an increased risk of contaminating ground water.
Further, Garber moved a device called a “packer” up the wellbore in violation of the well’s permit, without first getting approval from the state. A properly placed packer is an essential device to maintaining integrity of the well and ensuring wastewater does not escape into surrounding soil and groundwater.
Then, Garber gave false information to a state inspector regarding the depth of the packer.
A search warrant was executed at the well on Nov. 20, 2013, and it was confirmed that the packer had been moved up in the wellbore and was significantly higher than the depth that had been initially represented by Garber. Despite illegally moving the packer on Feb. 14, 2012, Garber continued to inject saltwater into the well until on or about March 5, 2012, when a state employee shut the well in.
The case was investigated by the U.S. Environmental Protection Agency’s Criminal Investigation Division. Significant cooperation was provided by the North Dakota Industrial Commission (NDIC). The case is being prosecuted by the United States Attorney’s Office for the District of North Dakota and the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.
- Office Manager Sent to Prison for Defrauding Former Employer of More Than $400,000
North Smithfield Construction Company Owner Sentenced for Tax EvasionRead the Press Release
PROVIDENCE, R.I. –Paul F. Pytko, 49, owner of Pytko Construction Corp. in North Smithfield, R.I., was sentenced today to 3 years probation, to include 20 weekends of incarceration at the Donald W. Wyatt Detention Facility in Central Falls, for concealing the sale of a company asset that he agreed to sell in order to satisfy taxes owed to the IRS, announced United States Attorney Peter F. Neronha, William P. Offord, Special Agent in Charge of IRS Criminal Investigation and Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Pytko to pay restitution to the IRS in the amount of $611,320. Pytko pleaded guilty in June 2014 to one count of conspiracy to defraud the United States and one count of tax evasion.
At the time of his guilty plea, Pytko admitted to the court that he had agreed to sell a large piece of construction equipment to pay down some of the more than $600,000 in debt he owed to the IRS in unremitted employee withholding taxes, penalties and interest incurred for tax periods ending in September 2003 through June 2006.
Pytko admitted to the court that he sold the piece of equipment, but that none of the proceeds were paid to the IRS as was promised. Pytko admitted to the court that some of the funds were wired into a third party account and then disbursements made to pay for business expenses and for his own personal use.
The case was prosecuted by Assistant U.S. Attorney Richard W. Rose, with the assistance of Assistant U.S. Attorney John P. McAdams.
The matter was investigated by IRS Criminal Investigation and the FBI.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]New York Man Sentenced to Twelve Years in Prison for Defrauding Would-Be BorrowersRead the Press Release
ATLANTA - Kenneth J. Enrico has been sentenced to 12 years in prison for posing as a mortgage broker to defraud over 300 borrowers nationwide out of $1.2 million in application fees for loans that he could not close.
“This defendant preyed on prospective home owners across the country that were pursuing the American dream of owning their own home,” said United States Attorney Sally Quillian Yates.
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The facts of this case clearly illustrate that mortgage fraud is not a victimless crime. Because of the extensive harm done in these types of cases, the FBI will continue to aggressively identify, investigate, and present for prosecution those individuals involved.”
According to United States Attorney Yates, the charges and other information presented in court: From 2009 until approximately October 2012, Enrico held himself out as a mortgage or real estate loan broker, doing business as Enrico Corporation, in Bohemia, N.Y. Enrico purported to offer a residential mortgage loan program that would finance as much as 105% of a home purchase at rates as low as 4.99%. Enrico marketed his loan program to people who had sufficient income to make the monthly payment, regardless of their credit score. He required prospective borrowers to pay him an up-front fee of $2,500 or more per loan, which supposedly was to cover the costs of processing and approving the loan application that borrowers submitted. Enrico recruited brokers around the country, including in the Atlanta area, to market his fraudulent loan program nationwide. Enrico incentivized the brokers by directing them to tack on extra application fees for themselves and promising them profits from the promised loan closings.
Enrico and his brokers received more than $1.2 million in application fees from more than 300 individuals across the country. Although many of these individuals received a letter informing them that they had been approved for a loan, Enrico never closed a single loan. In fact, Enrico lacked any source of funding for the loan program that he was marketing and appears to have done little or no work to obtain any such funding. Enrico operated out his apartment, equipped with a telephone and a fax machine. When the FBI executed a search warrant on his apartment in October 2012, special agents found boxes of loan applications stacked on the floor of Enrico’s closet. Enrico had removed the checks from borrowers and brokers from such boxes and negotiated or cashed such checks. Agents also found a total of $198,000 in cash in a safe, and other locations in Enrico’s apartment.
When buyers and brokers began questioning why loans never closed, Enrico gave numerous excuses and continued to promise that loans would close once various issues were resolved. While prospective borrowers lost fees paid to Enrico and the brokers, many also lost additional funds (such as earnest monies and fees paid for appraisals or inspections) when their real estate purchase fell through after Enrico’s failure to close their loan. Even after being indicted, Enrico continued to solicit loan application fees for loans that he could not close.
Enrico, 47, of Bohemia, N.Y., has been sentenced to 12 years in prison to be followed by three years of supervised release. The Court left restitution open for a period not to exceed 90 days to facilitate the final identification of Enrico’s victims and their loss amounts. Enrico was found guilty of 17 counts of conspiracy, mail fraud, and wire fraud by a jury on March 28, 2014.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorneys Doug Gilfillan and Christopher Huber 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/.
New Jersey Woman Pleads Guilty to Role in Stolen Identity Tax Refund SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ARACELYS PICHARDO, 26, of Jersey City, New Jersey, waived her right to indictment and pleaded guilty today before U.S. Magistrate Judge Donna F. Martinez in Hartford to one count of theft of government property.
According to court documents and statements made in court, PICHARDO obtained fraudulent U.S. Treasury tax refund checks through her former boyfriend, Carlos Jose Luis, also known as Jose Quilestorres. The checks were payable to individuals from Puerto Rico whose identities had been stolen and in whose names tax returns generating the refund checks had been filed by various scheme participants. Between November 2011 and February 2012, PICHARDO provided at least 21 of these fraudulently obtained tax refund checks to Carlos Mateo. Mateo gave the checks to Jeovany Rios, who cashed them at credit union branches in Bridgeport, Milford and Danbury with the assistance of Angel Castellano, a teller at the credit union. Rios returned most of the funds to Mateo after taking a portion for himself and Castellano. Mateo then gave a majority of the funds he received to PICHARDO who passed the money on to Luis. Luis paid PICHARDO for her role in helping to transact the checks.
In total, PICHARDO provided Mateo with 21 U.S. Treasury tax refund checks totaling $137,860.70.
PICHARDO is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on December 29, 2014, at which time she faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
Mateo, Rios, and Castellano, all of Bridgeport, have pleaded guilty to charges related to this scheme.
In 2013, Luis pleaded guilty in both the Southern District of New York and the District of New Jersey, admitting that he was a leader of a scheme to steal more than $10 million in fraudulent federal tax refund checks. He is currently serving a 108-month federal prison term. (http://www.justice.gov/usao/nys/pressreleases/March14/QuilestorressentencingPR.php)
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Multi-Million Dollar Mortgage Fraud Ringleader SentencedRead the Press Release
San Diego, CA - Kathryn Sylvester of San Diego was sentenced today to 41 months in custody for operating a large-scale mortgage fraud scheme that caused over $6 million in losses on various properties in San Diego and Orange Counties.
A restitution order is pending. The government has asked the court to order Sylvester to pay $6.6 million to several financial institutions and individuals who were victimized by her scheme.
During today’s sentencing hearing, U.S. District Court Judge Cathy Ann Bencivengo said Sylvester orchestrated a “sophisticated operation” involving “repeated acts of criminal behavior.” Judge Bencivengo acknowledged Sylvester’s managerial role in the conspiracy and noted that she must be held responsible for the “serious offense.”
According to court records and Sylvester’s admissions, between June 2005 and May 2008, Sylvester recruited “straw buyers” to submit falsified mortgage loan applications in order to buy properties and obtain home equity loans. Sylvester also provided false documents to support the straw buyers’ misrepresentations regarding their income and employment, and added straw buyers to unrelated bank accounts so they could inflate the value of their assets on loan applications. Sylvester also helped convince lenders to fund loans for which Sylvester and the straw buyers would not otherwise qualify.
Although Sylvester promised some straw buyers that she would “flip” a number of the properties for a quick profit, she systematically drained equity from the properties for her own benefit. As a result of Sylvester’s criminal acts, the conspirators were able to fraudulently obtain over 80 loans resulting in over $24 million in funded loans -- loans that eventually went into default and resulted in the foreclosure of approximately 28 properties.
U.S. Attorney Laura Duffy commented: “It is our sincere hope that we have closed a chapter on the destructive wave of mortgage frauds that heavily contributed to this nation’s financial crisis. Due to the determined efforts of the FBI to ensure that financial crimes do not go unpunished, Kathryn Sylvester and her conspirators have been held accountable for the serious damage they caused.”
FBI Acting Special Agent in Charge Robert Howe commented, “This FBI investigation unraveled a sophisticated mortgage fraud scheme that involved straw buyers and people in trusted positions who had a role in protecting the integrity of the mortgage lending process. Because of her lies and deception, motivated by greed, Ms. Sylvester will now be spending close to four years in federal prison to think about whether it was all worth it. Today's sentencing sends a message that the FBI will continue to aggressively investigate those individuals that engage in fraudulent financial schemes that cause harm to our banking industry.”
The straw buyers involved in Sylvester’s conspiracy included Claudia Montes, Tad Lent, Timothy Shannahan, and Roderick Michener. Montes, a former notary public, notarized the signatures of other straw buyers on the false loan applications. On April 12, 2013, Montes pleaded guilty and admitted that she conspired with Sylvester to submit false loan applications to lenders. Montes was sentenced to 20 months in custody by U.S. District Judge Janis L. Sammartino on February 14, 2014 (13CR1313-JLS).
Lent pleaded guilty to conspiring with Sylvester to submit falsified loan applications to mortgage lenders by misrepresenting the amount of his assets (12CR3744-L). U.S. District Judge M. James Lorenz sentenced Lent to one year of custody on March 3, 2014.
On April 14, 2014, Judge Lorenz also sentenced Shannahan to one year in custody for his role as one of Sylvester’s straw buyers (13CR1650-L). Michener pleaded guilty to conspiring with Sylvester to commit bank fraud (13CR1130-CAB). Michener admitted that he permitted co-conspirators to claim an ownership interest in his bank account in order to include the account as an asset on their respective mortgage loan applications. He also admitted transferring fraud proceeds to Sylvester. On March 14, 2014, Judge Bencivengo sentenced Michener to time-served and ordered him to repay over $2 million in restitution.
DEFENDANT Case Number: 13CR1355-CAB Kathryn Sylvester Age: 44 CHARGESCount 1: Title 18, United States Code, Section 1349 (conspiracy to commit wire fraud and bank fraud)
Maximum penalty: 30 years of custody; $1,000,000 fineCount 5: Title 18, United States Code, Section 1343 (wire fraud)
INVESTIGATING AGENCY
Maximum penalty: 20 years of custody; $250,000 FineFederal Bureau of Investigation
Michigan Physician Pleads Guilty for Role in Medicare Fraud SchemeRead the Press Release
A Detroit-area physician who made fraudulent referrals for home health care in a $1.3 million Medicare fraud scheme pleaded guilty today.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office, and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) Chicago Regional Office made the announcement.
Dr. Vicha Janviriya, 77, of Southfield, Michigan, pleaded guilty before U.S. District Judge Arthur J. Tarnow in the Eastern District of Michigan to one count of conspiracy to commit health care fraud. Sentencing is scheduled for Jan. 21, 2015.
According to court documents, Janviriya admitted that from February 2006 through September 2012, he falsified medical documentation and falsely certified Medicare beneficiaries as homebound or requiring home health care services. In many cases, he had never met those beneficiaries. Janviriya admitted that he knew the false home health certifications would be used to support false claims to Medicare for services that were never rendered or not medically necessary, or where the Medicare beneficiary referrals were obtained through the payment of kickbacks.
Between February 2006 and September 2012, Janviriya caused Medicare to pay approximately $1,366,496 based on his false home health certifications.
This 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 Eastern District of Michigan. This case is being prosecuted by Trial Attorneys Niall M. O’Donnell and Matthew Thuesen 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 and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
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Mexicali Man Sentenced to 46 Months for Attempting to Illegally Export 6000 Rounds of Ammunition into MexicoRead the Press Release
TUCSON, Ariz. – On Sept. 24, 2014, Luis Armando Collins-Avila, 43, of Mexicali, Mexico, was sentenced by U.S. District Court Judge James A. Soto, to 46 months confinement followed by 3 years of supervised release. On June 23, 2014, Collins pled guilty to trying to smuggle the 6000 rounds of ammunition into Mexico.
On July 18, 2013, Collins was driving outbound from Douglas, Ariz. into Agua Prieta, Mexico in a Chevrolet Suburban. Before leaving the country, an inspection of Collins vehicle revealed 6,000 rounds of ammunition concealed in the doors and wheel wells. A receipt found in the car indicated Collins had purchased the ammunition the day prior to his arrest. After his arrest, Collins admitted he had concealed the ammunition in his vehicle to avoid detection.
The investigation in this case was conducted by ICE-Douglas, U.S. Customs and Border Protection, and the Douglas Police Department. The prosecution was handled by Arturo Aguilar, District of Arizona, Tucson.
CASE NUMBER: CR-13-01376
RELEASE NUMBER: 2014-053_Collins-AvilaFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Many Resident Pleads Guilty to Possessing a Firearm, Ammunition after being Convicted of FeloniesRead the Press Release
SHREVEPORT, La. –A Many, La., man pleaded guilty Thursday to possessing a shotgun and ammunition after being convicted of multiple felonies, U.S. Attorney Stephanie A. Finley announced.
Jerry Kenneth Thompson Jr., 44, of Many, pleaded guilty Thursday before U.S. District Judge Elizabeth E. Foote to one count of possessing a firearm and ammunition after a felony conviction. According to evidence presented at the guilty plea, Louisiana Department of Wildlife and Fisheries (LDWF) agents discovered Thompson on December 31, 2013 in possession of a 12 gauge shotgun and ammunition while hunting on private property without permission and using a stolen deer stand. Thompson admitted to LDWF agents that he had prior felony convictions and knew he could not possess a firearm. Further investigation confirmed that Thompson had seven felony convictions in California. The felony convictions include: two convictions for grand theft, possession of marijuana with intent to sell, second degree burglary of a vehicle, possession with intent to sell a controlled substance with a gang affiliation enhancement, transportation of a controlled substance, and possession for sale of cocaine base. Thompson also had a prior felony conviction in Sabine Parish for simple burglary.
Thompson faces up to 10 years in prison, three years of supervised release, a $250,000 fine, and forfeiture of the firearm and ammunition. A sentencing date of January 30, 2015 was set.
The ATF and the Louisiana Department of Wildlife and Fisheries conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. is prosecuting the case.
Louisville Man Sentenced to 156 Months for Possessing Cocaine with Intent to Distribute in Boone CountyRead the Press Release
COVINGTON, KY -A Louisville man was sentenced today to 156 months in federal prison for possessing crack cocaine in Northern Kentucky with the intent to distribute it.
U.S. District Judge Amul Thapar sentenced 58 year-old Edward L. Adams to 156 months in prison and placed him on supervised release for six years after he completes his prison term.
On December 18, 2013, Adams admitted to possessing almost 20 grams of crack cocaine at a hotel in Boone County with the intent to distribute it.
Adams entered his guilty plea on June 19, 2014. Under federal law, he must serve at least 85 percent of his prison sentence. He is classified as a career offender under federal law because of two prior felony drug trafficking convictions. This classification enhanced his sentence.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Howard S. Marshall, Special Agent in Charge, Federal Bureau of Investigation, jointly made the announcement after the sentencing.
The investigation was conducted by the Federal Bureau of Investigation Safe Streets Task Force and the Northern Kentucky Drug Strike Force. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorney Tony Bracke.
Leader of Cartel-Linked Drug and Weapons Trafficking Ring Sentenced to 27 Year Prison TermRead the Press Release
The U.S. based leader of a drug and gun trafficking organization with direct links to a violent Mexican drug cartel was sentenced today in U.S. District Court in Seattle to 27 years in prison, announced U.S. Attorney Jenny A. Durkan. CRISTIAN BERRELLEZA-VERDUZCO, 31, of Everett, Washington, pleaded guilty in April 2013 to Conspiracy to Distribute Controlled Substances; Conspiracy to Commit Money Laundering; Conspiracy to Interfere with Commerce by Robbery; Conspiracy to Possess Firearms in Furtherance of a Drug Trafficking Crime, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. BERRELLEZA-VERDUZCO and his brother Victor were the U.S leaders of a large Mexico based drug and gun trafficking ring with ties to the violent Beltran-Leyva drug cartel. The men’s father is the leader of the drug trafficking organization and remains a fugitive in Mexico. At sentencing U.S. District Judge Robert S. Lasnik said all three of the BERRELLEZA-VERDUZCO brothers are imprisoned in the U.S., a reality that was “set in motion by their father.”
“This sentence helps protect us from a very dangerous man and organization. This defendant raked in massive profits from the scourge of heroin addiction. He and his family sought to control the entire supply chain, from growing the poppies, to manufacturing the heroin, to selling it in this District,” said U.S. Attorney Jenny A. Durkan. “And just as they moved their drugs north, they wanted to move high powered weapons back to Mexico to cause further cartel related violence.”
“From his base in an unassuming Snohomish County neighborhood, Berrelleza-Verduzco ran a multimillion dollar heroin and meth trafficking operation that took multiple federal, state and local agencies in three states to dismantle.” said Brad Bench, special agent in charge of Homeland Security Investigations in Seattle. “He fed the destructive habit of Washington addicts and fueled Mexican cartel violence with drug money. Incarcerating Berrelleza-Verduzco and his co-conspirators is a significant victory for public safety, especially considering the massive increase in local teens dying of heroin overdoses in recent years.”
According to records filed in the case, CRISTIAN BERRELLEZA-VERDUZCO directed both the smuggling of meth and heroin from Mexico into the United States and in efforts to smuggle guns back to Mexico. Phone calls recorded in the wire-tap investigation reveal he frequently threatened to harm or kill those whom he had felt had failed him. BERRELLEZA-VERDUZCO was arrested in Arizona with firearms, including an AK-47 style assault weapon, in October of 2011. He was prosecuted and deported by state authorities, but quickly returned to Washington to continue his gun and drug trafficking activities.
BERRELLEZA-VERDUZCO and 29 co-conspirators were arrested in March 2012, following a lengthy investigation. During the investigation agents seized multiple kilos of heroin, pounds of methamphetamine, and more than a dozen firearms, including military-style assault rifles which were bound for cartel members in Mexico. In all, 34 people were charged in the case. Most have been sentenced, some to prison terms in excess of ten years. One year ago, Victor Berrelleza-Verduzco was sentenced to 20 years in prison, and his brother Ivan Berrelleza-Verduzco was sentenced to seven years in prison.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The case was investigated by the ICE’s Homeland Security Investigations, the Bureau of Alcohol, Tobacco and Firearms (ATF), the Drug Enforcement Administration (DEA), the Lake Stevens Police Department, the Snohomish Police Department, Washington State Patrol, the Snohomish Regional Drug Task Force and the Seattle Police Department.
The case is being prosecuted by Assistant United States Attorney Vince Lombardi.
Leader of California-Based Methamphetamine Trafficking Organization Pleads GuiltyRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Antonio Cuevas-Navarro (47, Sacramento, California) pleaded guilty yesterday to one count of conspiring with others to distribute 500 grams or more of methamphetamine. Cuevas-Navarro faces a mandatory minimum term of ten years’ imprisonment, up to a maximum penalty of life.
According to the plea agreement, in February 2012, Cuevas-Navarro attempted to have 12 pounds of methamphetamine smuggled from Jonesboro, Arkansas to Pasco County, Florida. On February 22, 2012, two co-conspirators working on Cuevas-Navarro’s behalf drove from Pasco County to Jonesboro to retrieve the drugs. The following day, during a traffic stop in Arkansas, law enforcement agents intercepted the drugs from five of Cuevas-Navarro’s co-conspirators.
On April 5, 2012, DEA agents seized seven pounds of methamphetamine in Pasco County from three of Cuevas-Navarro’s co-conspirators. The drugs had previously been shipped to Pasco County by Cuevas-Navarro. In June 2012, Cuevas-Navarro sent Jose Angel Carrillo, Jr. from California to Pasco County to retrieve money from the drug sales. Carrillo then picked up $3,500 in a Wal-Mart parking lot in Pasco County, which represented a partial payment owed for one pound of methamphetamine.
This case was investigated by the Drug Enforcement Administration (DEA) and the Pasco County Sheriff’s Office as part of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation, in which nine other individuals have already been convicted. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case is being prosecuted by Assistant United States Attorney Christopher F. Murray.
Law Enforcement Officials Announce the Results of Sex Offender Sweep in Kanawha CountyRead the Press Release
Charleston, W.Va. – U.S. Attorney Booth Goodwin, U.S. Marshal John Foster and West Virginia State Police First Lieutenant Michael Baylous announced today that as a result of a four-day law enforcement operation aimed at verifying compliance of more than 411 registered sex offenders currently residing in Kanawha County, 24 offenders were found to be out of compliance.
The initiative, dubbed Operation C4 (Capitol City Compliance Checks), is a multi-agency law enforcement effort targeting registered sex offenders to determine individual compliance with the Sex Offender Registration Notification Act, or SORNA. Led by the U.S. Marshal’s Sex Offender Investigations Branch, Operation C4 targeted 411 registered sex offenders and found 387 to be in compliance. A total of 24 offenders were found out of compliance during the checks conducted on September 22-25. Warrants were issued for 20 offenders, and of those 12 have already been arrested. Operation C4 revealed that seven sex offenders had absconded. Deputy U.S. Marshals, along with West Virginia State Troopers, will continue their investigation until those violators are found.
“The prosecution of sex offenders remains one of my office’s top priorities. These sweeps are an important step in bringing to justice those offenders who have not registered as required by law, and who continue to pose a threat to the communities in which they hide,” said U. S. Attorney Goodwin.
Operation C4 was initiated by members of the West Virginia State Police, in cooperation with the U.S. Marshal’s Service Sex Offender Investigations Branch for the Southern District of West Virginia. U. S. Marshal John Foster stated, “The U.S. Marshal’s Service will continue conducting these sweeps and tracking down sex offenders who are not in compliance with the law.”
Through this and previous regional sweeps throughout the Southern District of West Virginia, a combined total of more than 1,250 offender compliance checks have been conducted.
The Sex Offender Registration Notification Act (SORNA) is a part of the Adam Walsh Child Protection and Safety Act of 2006. SORNA provides a comprehensive set of minimum standards for sex offender registration and notification in the United States.
These sweeps are conducted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/usao/wvs/PSCpage.html.
Lanham Man Sentenced to 45 Months in Prison for Bank Fraud Conspiracy Where He Took Control of Victim Bank AccountsRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Baldwin Nnamdi Chukweum Osuji, age 26, of Lanham, Maryland, today to 45 months in prison, followed by five years of supervised release, for conspiracy to commit bank fraud and for aggravated identity theft. Judge Motz also ordered Osuji to pay restitution of $128,256.21.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
According to his plea, from May 2011 through April 2013, Osuji participated in a scheme to defraud financial institutions by using victims’ personal identification information and impersonating the victims in phone calls with the bank. Specifically, Osuji called financial institutions and impersonated victims, using the victims’ personal information, which he obtained from a third party, to gain access to the victims’ bank accounts.
Once access was granted to victim bank accounts, Osuji changed the online identification and password and took over control of the bank account. Osuji obtained images of the victims’ checks online and used those images to reproduce fraudulent checks, using the bank account information of the victims as well as means of identification of the victims, for example, their names and signatures.
Osuji and others then deposited these fraudulent checks into bank accounts of co-conspirators, and using the co-conspirators’ personal information withdrew and attempted to withdraw cash from these accounts.
On April 5, 2013, a federal search warrant was executed at Osuji’s residence. Law enforcement recovered from his home and his computer various debit cards used in connection with the scheme, copies of fraudulent checks, check stock for making fraudulent checks, and documents detailing victim account information.
Osuji admitted that he defrauded and/or utilized the personal identifying information of at least 56 individuals. The actual loss associated with the fraud is approximately $128,256.21.Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service and U.S. Postal Inspection Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and P. Michael Cunningham, who prosecuted the case.
Lafayette Businessman Richard Buswell Sentenced to 126 Months in Prison for Investment Fraud Scheme that Cost Investors MillionsRead the Press Release
LAFAYETTE, La. –U.S. Attorney Stephanie A. Finley announced today that Lafayette investment firm owner Richard Buswell was sentenced to 126 months in prison for a scheme that cost victims millions of dollars.
Richard Joseph Buswell, 46, of Lafayette, was sentenced by U.S. District Judge Richard T. Haik for one count of wire fraud. Buswell was also sentenced to three years of supervised release, and was ordered to pay a $125,000 fine and $6,380,808.03 in restitution to victims of the scheme.
According to evidence presented at the July 24, 2013 guilty plea, Buswell worked as a licensed stockbroker from 2006 until 2009 in Lafayette for his company, Bowman Investment Group LLC. He used Brookstone Securities of Lakeland, Fla., as the company’s broker dealer. Buswell engaged in frequent and excessive stock trades in order to earn commissions. He also placed his clients into high risk products when the clients did not meet the requirements under federal security laws, rules and regulations. In order to do this, he falsified account applications concerning net worth and other client information so that some of the clients would appear to meet the requirements of the federal security laws, rules and regulations. As a result of these practices, Buswell received more than $1.7 million in commissions from Brookstone during 2008 and 2009. When the investments failed to produce a profit, clients lost more than $6 million.
Co-defendant Herbert S. “Steve” Fouke, 55, of Lafayette, was sentenced on May 14, 2014 to 30 months in prison and three years of supervised release for conspiracy to commit securities fraud, investment adviser fraud, wire fraud and mail fraud. He is jointly responsible with Buswell for paying restitution to the victims of the scheme. They were indicted in August of 2011.
“The defendant in this case misled investors who put their trust in him solely so that he could enrich himself illegally,” Finley stated. “He spent, in some cases, his clients’ life savings leaving them with nothing or in debt. I hope this sentence serves as a warning to those who are thinking about stealing from their customers. This office will continue to prosecute those who put their greed before the interests of well-meaning investors. The prosecutors and agents in this case are to be commended for all of their hard work.”
The FBI conducted the investigation. Assistant U.S. Attorney Kelly P. Uebinger prosecuted the case.
King County Man Sentenced to 7 Years in Prison for use of Firearm at Drug DealRead the Press Release
A south King County man was sentenced today in U.S. District Court in Seattle to seven years in prison for using a firearm during a drug crime that turned deadly, announced U.S. Attorney Jenny A. Durkan. LENNY BRIKN, JR, 19, of Federal Way, and his half-brother Deshawn Boykin attempted to rob two drug dealers of two pounds of marijuana. After holding the men at gunpoint, Boykin was fatally shot as he and BRIKN tried to run away. At sentencing U.S. District Judge Robert S. Lasnik said, “firearms in the hands of people who cannot control themselves continues to create tragedy in our community.”
“From any perspective, this case is a pure tragedy,” said U.S. Attorney Jenny A. Durkan. “One young man is going to prison and his brother is dead -- all over marijuana valued at less than $5,000. This is a further reminder that guns and drugs are a deadly combination.”
According to the records filed in King County Superior Court as well as the indictment, David Ross, 35 of Renton, Washington, and an associate arrived at a Federal Way apartment complex to sell marijuana to the two men. Ross was armed with a gun, despite having two previous felony drug convictions that prohibit him from possessing a firearm. BRIKN and Boykin drew “Mac 10” style semi-automatic pistols, ordered Ross and his associate to lie on the ground, and attempted to rob them of the marijuana they brought to the drug deal. BRIKN and Boykin ultimately ran away, and Ross drew his gun and fired multiple times at the fleeing men. Boykin was hit twice and died of his wounds at St. Francis Medical Center.
Ross is charged with conspiracy to distribute marijuana, unlawful possession of a firearm and discharging a firearm in furtherance of a drug trafficking crime. Discharging a firearm in furtherance of a drug trafficking crime carries a mandatory minimum ten year sentence in addition to any other sentence imposed in the case. Ross is scheduled for trial in January 2015.
The case was investigated by the Federal Way Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Ketchikan Seasonal Worker Charged with Assault on a Federal OfficerRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a Ketchikan man was arraigned on one charge of assault on a federal officer.
Dean Wesley Garcia, 23, was indicted September 16, 2014, on a sole count of assault on a federal officer. Garcia pled not guilty to the charge.
According to the information presented to the court, a National Oceanic and Atmospheric Administration (NOAA) Special Agent visited Garcia at his place of employment in response to a report of illegal sales of sport-caught halibut in Ketchikan, Alaska. While the agent was interviewing Garcia inside his business he noticed a large filet knife on a counter. Court documents allege that the agent moved the knife closer to him for officer safety purposes, at which point Garcia asked the agent, “are you scared?” and then Garcia grabbed the knife and began vigorously swinging the knife in the air in front of the agent placing him in fear of bodily injury. The agent was able to de-escalate the situation and nobody was physically injured.
Assistant U.S Attorney Jack S. Schmidt, who is prosecuting the case, indicated that the law provides for a maximum total sentence of 20 years in prison and a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
The National Oceanic and Atmospheric Administration Office of Law Enforcement conducted the investigation leading to the indictment in this case. Garcia remains incarcerated pending trial.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.Justice Department Settles Lawsuit Against Texas Bus Company for Discriminating Against U.S. WorkersRead the Press Release
The Justice Department announced today that it reached a settlement with Autobuses Ejecutivos LLC, doing business as Omnibus Express, a bus company based in Houston, Texas. The settlement resolves a lawsuit filed in August 2013 by the department under the Immigration and Nationality Act’s (INA) antidiscrimination provision. The lawsuit alleged that the company discriminated against U.S. workers by preferring to hire workers on temporary H-2B visas for its bus driver positions.
Under the settlement agreement, Omnibus Express will establish a $208,000 fund to compensate victims of its discriminatory practices, pay $37,800 in civil penalties to the United States and be subject to monitoring of its hiring and recruiting practices for a two-year period. Individuals who sought bus driver positions with Omnibus Express between August 2012 and February 2013, but were not hired, should contact Joann Sazama at (202) 307-3092, or Ryan Thompson at (202) 616-5557.
“Federal law prohibits employers from discriminating on the basis of citizenship status in hiring and recruiting,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “The department is committed to investigating and prosecuting discriminatory hiring preferences that impede the ability of U.S. citizens and other work-authorized individuals to compete equally for employment.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation. For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php; email [email protected]; or visit the website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship status, immigration status, or national origin; or discrimination based on their citizenship status, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee, should contact OSC’s worker hotline for assistance.
Justice Department Seeks to Shut Down Ohio Tax Return PreparerRead the Press Release
The Justice Department announced today that the United States has filed a civil injunction suit against a Dayton, Ohio, man to enjoin him from preparing tax returns which understate his customer’s tax liabilities.
Rodger S. Thomas Sr. is alleged to have prepared tax returns for customers that claimed false business deductions on their Schedule C (profit and loss from business) and fictitious deductions on their Schedule A (itemized deductions) from 2006 through 2009 in a complaint filed in the U.S. District Court for the Southern District of Ohio. According to the complaint, Thomas also prepared false Forms 1099 in order to inflate customers’ income and maximize their Earned Income Tax Credits. The government alleged that Thomas would then report these payments on the Schedule C of his own income tax returns as expenses incurred by his business Ramjet Express. The complaint also alleged that Thomas failed to sign or affix a Preparer Tax Identification Number (PTIN) to many of the returns that he prepared.
In 2012, Thomas pleaded guilty to one count of making a false statement on an income tax return and one count of aiding and assisting in the filing of a false income tax return. He was subsequently sentenced to 24 months in prison. Thomas was released from prison in March 2014 and, according to the government’s complaint, has indicated that he intends to continue preparing tax returns. The United States seeks, among other things, that the court bar Thomas from preparing or assisting others in the preparation of a tax form that understates a tax liability. Additionally, the government is requesting that Thomas be required to identify himself on returns using his name and PTIN, keep a list of the names of individuals for whom he prepares federal tax returns, and provide the list of customers to the Internal Revenue Service (IRS) for inspection upon demand.
Return preparer fraud is one of the IRS' Dirty Dozen Tax Scams for 2014. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Related Materials:
United States v. Rodger S. Thomas Sr.
Complaint for Preliminary and Permanent InjunctionJury Imposes Death Sentence on a Las Vegas Man for Kidnapping and Murdering a 12-Year-Old GirlRead the Press Release
A federal jury in the Western District of Louisiana today returned a verdict imposing the death penalty on a Las Vegas man for the brutal kidnapping and murder of a 12-year-old girl. This case represents the first time the death penalty has been imposed in federal court in the Western District of Louisiana.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Stephanie A. Finley and Special Agent in Charge Michael J. Anderson of the FBI’s New Orleans Division made the announcement.
Thomas Sanders, 57, was convicted on Sept. 8, 2014, of one count of kidnapping resulting in death and one count of using a firearm during a crime of violence resulting in death, for the kidnap and murder of Lexis Roberts in the fall of 2010.
“This is a heartbreaking case,” said Assistant Attorney General Caldwell. “A young girl witnessed the murder of her mother, was held captive for days, and had her life cut tragically short by a senseless, brutal murder. We hope today’s verdict will help Lexis’s family as they continue to struggle with the loss of their loved ones.”
“These types of cases are never easy, but today we remember the victims, their families and their loved ones,” said U.S. Attorney Finley. “The nature of the crime and the level of violence involved are something that we never get used to no matter how long we have done this. The severity of the sentence imposed against Sanders underscores the senseless brutality of his acts against an innocent 12-year-old girl. Lexis Roberts was needlessly taken from a family that loved her, and she was denied the most fundamental right of life, and they were denied the joy of knowing what that life could have been. Still, we do not lose sight of the fact that this trial and sentencing also represent the right of due process that was extended to Sanders, and a jury of his peers has rendered justice. Nothing, no trial or sentence, can ever bring Lexis or her mother back, but we hope that the verdict brings some measure of closure to Lexis’s family. The prosecutors and the law enforcement agencies that assisted in this case are to be commended for their hard work. The importance of their collective efforts cannot be overstated.”
“Our thoughts and prayers go out to the family and friends of the victims who have endured unimaginable grief while awaiting the just verdict and sentence for such horrific crimes,” said FBI Special Agent in Charge Anderson.
Evidence admitted during trial established that Sanders met Suellen Roberts, 31, in the summer of 2010 when Roberts rented a storage unit at a warehouse in Las Vegas where Sanders worked. Roberts and Sanders began dating, and approximately two months later Roberts agreed that she and her 12-year-old daughter, Lexis, would go on a trip with Sanders over the Labor Day weekend to a wildlife park near the Grand Canyon. As they were returning to Nevada after three days of traveling, Sanders pulled off Interstate 40 in a remote location in the Arizona desert and shot Suellen Roberts in the head and forced Lexis Roberts into the car, keeping her captive.
Sanders drove several days across the country before he murdered Lexis Roberts in a wooded area in Catahoula Parish, Louisiana. Evidence at trial established that Sanders shot Lexis Roberts four times, cut her throat and left her body in the woods, where a hunter found her body on Oct. 8, 2010. A nationwide manhunt ensued, and Sanders was arrested on Nov. 14, 2010, at a truck stop in Gulfport, Mississippi, by FBI agents and a Harrison County Sheriff’s Deputy.
At trial, the jury heard a recorded confession in which Sanders admitted killing the mother and daughter.
This case was investigated by the FBI’s New Orleans Division, Central Louisiana Safe Streets Task Force, Catahoula Parish Sheriff’s Office, Harrison County Sheriff’s Office, Yavapai County Arizona Sheriff’s Office, Coconino County Arizona Sheriff’s Office, and the Las Vegas Metropolitan Police Department. Trial Attorney Julie Mosley of the Criminal Division’s Capital Case Section and Assistant U.S. Attorneys William J. Flanagan and Brandon B. Brown prosecuted the case.
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Jury Imposes Death Sentence on a Las Vegas Man for Kidnap and Murder of a 12-year-old Girl in LouisianaRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that a federal jury in Alexandria, Louisiana, returned a verdict imposing the death penalty on a Las Vegas, Nevada, man for the kidnap and murder of a 12-year-old-girl.
On September 26, 2014, a federal jury in Alexandria, Louisiana, decided that Thomas Sanders, 57, should be put to death for the brutal kidnapping and murder of Lexis Roberts in the fall of 2010. During the penalty phase of the trial, the jury heard from a total of 18 witnesses called by the United States and by the defense. The jury determined that a sentence of death was appropriate for Sanders after deliberating for approximately seven hours. United States District Judge Dee D. Drell presided over the trial. This case represents the first time that the death penalty has been imposed in federal court in the Western District of Louisiana.
The penalty phase of the trial began on September 16, 2014, after the same jury found Sanders guilty of one count of kidnapping resulting in death and one count of using a firearm during a crime of violence resulting in death. Jury selection lasted eight days. Then the guilt phase began on Wednesday, September 3, and ended on Monday, September 8. The jury returned a guilty verdict after deliberating for about an hour.
During the penalty phase, jurors were asked to decide whether Sanders should be executed or spend the rest of his life in prison. Evidence admitted during trial established that Sanders met Suellen Roberts, 31, in the summer of 2010 when Roberts rented a storage unit at a warehouse in Las Vegas where Sanders worked. Roberts and Sanders began dating, and approximately two months later Roberts agreed that she and her 12-year-old daughter, Lexis, would go on a trip with Sanders over the Labor Day weekend to a wildlife park near the Grand Canyon. As they were returning to Nevada after three days of traveling, Sanders pulled off Interstate 40 in a remote location in the Arizona desert and fatally shot Suellen Roberts in the head and forced Lexis Roberts into the car, keeping her captive.
Sanders drove several days across the country before he murdered Lexis Roberts in a wooded area in Catahoula Parish, Louisiana. Evidence at trial established that Sanders shot Lexis Roberts four times, cut her throat, and left her body in the woods where a hunter found her body on October 8, 2010. A nation-wide manhunt ensued and Sanders was arrested on November 14, 2010, at a truck stop in Gulfport, Mississippi, by FBI agents and a Harrison County Sheriff's Deputy.
During the guilt phase of the trial, jurors heard from 16 witnesses who described Suellen Roberts’ relationship with Sanders, the sequence of events that led up to the murder, and how law enforcement established Sanders as the killer. Jurors also heard a recorded confession from Sanders in which Sanders admitted killing the mother and daughter. Evidence considered by the jury established that Sanders shot Lexis Roberts four times, cut her throat, and left her body in the woods. A forensic analysis determined that Sanders slashed Lexis Roberts’ throat with such force and violence that the knife left cut marks on her cervical vertebra.
Members of Roberts’ family testified at trial, including her grandmother, grandfather, and great-aunt. Testimony from family members shared with the jurors that Lexis was vulnerable and explained the devastating impact that the crime has had on their family. Her great-aunt testified that Lexis vacationed at her New Hampshire home every summer, with the most recent trip just weeks before Lexis was kidnapped and murdered by Sanders. Her aunt testified that during Lexis’ last trip to New Hampshire, she encouraged Lexis to write in two journals. Pages from the journals were introduced during the penalty phase and were considered by the jury. The journals helped establish that Lexis was trusting, and in one journal she wrote that she believed that nothing bad would ever happen to her.
Lexis Roberts’ grandfather testified that he encouraged Suellen and Lexis Roberts to move from New Hampshire to Las Vegas so that Suellen could find better employment. He told jurors that based on what happened to his daughter and granddaughter, he now suffers from guilt for encouraging them to move.
The penalty phase of the trial further established that Sanders’ crime was the result of substantial planning and premeditation and that Lexis Roberts was a vulnerable victim. Testimony included that of two of Lexis’ sixth grade teachers from Charles Silvestri Junior High in Las Vegas. Her math teacher told jurors that Lexis was extremely shy but very hard working. Her English teacher testified that Lexis was sweet and vulnerable. When asked to describe Lexis in one word, she replied “innocent.”
“These types of cases are never easy, but today we remember the victims, their families and their loved ones. The nature of the crime and the level of violence involved are something that we never get used to no matter how long we have done this. The severity of the sentence imposed against Sanders underscores the senseless brutality of his acts against an innocent 12-year-old girl,” Finley stated. “Lexis Roberts was needlessly taken from a family that loved her, and she was denied the most fundamental right of life, and they were denied the joy of knowing what that life could have been. Still, we do not lose sight of the fact that this trial and sentencing also represent the right of due process that was extended to Sanders, and a jury of his peers has rendered justice. Nothing, no trial or sentence, can ever bring Lexis or her mother back, but we hope that the verdict brings some measure of closure to Lexis’ family. The prosecutors and the law enforcement agencies that assisted in this case are to be commended for their hard work. The importance of their collective efforts cannot be overstated.”
“This is a heartbreaking case,” said Assistant Attorney General Leslie R. Caldwell. “A young girl witnessed the murder of her mother, was held captive for days, and had her life cut tragically short by a senseless, brutal murder. We hope today’s verdict will help Lexis’ family as they continue to struggle with the loss of their loved ones.”
FBI Special Agent in Charge Michael J. Anderson added, “Our thoughts and prayers go out to the family and friends of the victims who have endured unimaginable grief while awaiting the just verdict and sentence for such horrific crimes.”
The FBI, Central Louisiana Safe Streets Task Force, Catahoula Parish Sheriff’s Office, Harrison County Sheriff’s Office, Yavapai County Arizona Sheriff’s Office, Coconino County Arizona Sheriff’s Office, and the Las Vegas Metropolitan Police Department conducted the investigation. Assistant U.S. Attorney William J. Flanagan, Assistant U.S. Attorney Brandon B. Brown, and Trial Attorney Julie Mosley of the U.S. Department of Justice’s Capital Case Section prosecuted the case.
Jury Imposes Death Sentence on a Las Vegas Man for Kidnap and Murder of a 12 year-old Girl in LouisianaRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that a federal jury in Alexandria, Louisiana, returned a verdict imposing the death penalty on a Las Vegas, Nevada, man for the kidnap and murder of a 12-year-old-girl.
On September 26, 2014, a federal jury in Alexandria, Louisiana, decided that Thomas Sanders, 57, should be put to death for the brutal kidnapping and murder of Lexis Roberts in the fall of 2010. During the penalty phase of the trial, the jury heard from a total of 18 witnesses called by the United States and by the defense. The jury determined that a sentence of death was appropriate for Sanders after deliberating for approximately seven hours. United States District Judge Dee D. Drell presided over the trial. This case represents the first time that the death penalty has been imposed in federal court in the Western District of Louisiana.
The penalty phase of the trial began on September 16, 2014, after the same jury found Sanders guilty of one count of kidnapping resulting in death and one count of using a firearm during a crime of violence resulting in death. Jury selection lasted eight days. Then the guilt phase began on Wednesday, September 3, and ended on Monday, September 8. The jury returned a guilty verdict after deliberating for about an hour.
During the penalty phase, jurors were asked to decide whether Sanders should be executed or spend the rest of his life in prison. Evidence admitted during trial established that Sanders met Suellen Roberts, 31, in the summer of 2010 when Roberts rented a storage unit at a warehouse in Las Vegas where Sanders worked. Roberts and Sanders began dating, and approximately two months later Roberts agreed that she and her 12-year-old daughter, Lexis, would go on a trip with Sanders over the Labor Day weekend to a wildlife park near the Grand Canyon. As they were returning to Nevada after three days of traveling, Sanders pulled off Interstate 40 in a remote location in the Arizona desert and fatally shot Suellen Roberts in the head and forced Lexis Roberts into the car, keeping her captive.
Sanders drove several days across the country before he murdered Lexis Roberts in a wooded area in Catahoula Parish, Louisiana. Evidence at trial established that Sanders shot Lexis Roberts four times, cut her throat, and left her body in the woods where a hunter found her body on October 8, 2010. A nation-wide manhunt ensued and Sanders was arrested on November 14, 2010, at a truck stop in Gulfport, Mississippi, by FBI agents and a Harrison County Sheriff's Deputy.
During the guilt phase of the trial, jurors heard from 16 witnesses who described Suellen Roberts’ relationship with Sanders, the sequence of events that led up to the murder, and how law enforcement established Sanders as the killer. Jurors also heard a recorded confession from Sanders in which Sanders admitted killing the mother and daughter. Evidence considered by the jury established that Sanders shot Lexis Roberts four times, cut her throat, and left her body in the woods. A forensic analysis determined that Sanders slashed Lexis Roberts’ throat with such force and violence that the knife left cut marks on her cervical vertebra.
Members of Roberts’ family testified at trial, including her grandmother, grandfather, and great-aunt. Testimony from family members shared with the jurors that Lexis was vulnerable and explained the devastating impact that the crime has had on their family. Her great-aunt testified that Lexis vacationed at her New Hampshire home every summer, with the most recent trip just weeks before Lexis was kidnapped and murdered by Sanders. Her aunt testified that during Lexis’ last trip to New Hampshire, she encouraged Lexis to write in two journals. Pages from the journals were introduced during the penalty phase and were considered by the jury. The journals helped establish that Lexis was trusting, and in one journal she wrote that she believed that nothing bad would ever happen to her.
Lexis Roberts’ grandfather testified that he encouraged Suellen and Lexis Roberts to move from New Hampshire to Las Vegas so that Suellen could find better employment. He told jurors that based on what happened to his daughter and granddaughter, he now suffers from guilt for encouraging them to move.
The penalty phase of the trial further established that Sanders’ crime was the result of substantial planning and premeditation and that Lexis Roberts was a vulnerable victim. Testimony included that of two of Lexis’ sixth grade teachers from Charles Silvestri Junior High in Las Vegas. Her math teacher told jurors that Lexis was extremely shy but very hard working. Her English teacher testified that Lexis was sweet and vulnerable. When asked to describe Lexis in one word, she replied “innocent.”
“These types of cases are never easy, but today we remember the victims, their families and their loved ones. The nature of the crime and the level of violence involved are something that we never get used to no matter how long we have done this. The severity of the sentence imposed against Sanders underscores the senseless brutality of his acts against an innocent 12-year-old girl,” Finley stated. “Lexis Roberts was needlessly taken from a family that loved her, and she was denied the most fundamental right of life, and they were denied the joy of knowing what that life could have been. Still, we do not lose sight of the fact that this trial and sentencing also represent the right of due process that was extended to Sanders, and a jury of his peers has rendered justice. Nothing, no trial or sentence, can ever bring Lexis or her mother back, but we hope that the verdict brings some measure of closure to Lexis’ family. The prosecutors and the law enforcement agencies that assisted in this case are to be commended for their hard work. The importance of their collective efforts cannot be overstated.”
“This is a heartbreaking case,” said Assistant Attorney General Leslie R. Caldwell. “A young girl witnessed the murder of her mother, was held captive for days, and had her life cut tragically short by a senseless, brutal murder. We hope today’s verdict will help Lexis’ family as they continue to struggle with the loss of their loved ones.”
FBI Special Agent in Charge Michael J. Anderson added, “Our thoughts and prayers go out to the family and friends of the victims who have endured unimaginable grief while awaiting the just verdict and sentence for such horrific crimes.”
The FBI, Central Louisiana Safe Streets Task Force, Catahoula Parish Sheriff’s Office, Harrison County Sheriff’s Office, Yavapai County Arizona Sheriff’s Office, Coconino County Arizona Sheriff’s Office, and the Las Vegas Metropolitan Police Department conducted the investigation. Assistant U.S. Attorney William J. Flanagan, Assistant U.S. Attorney Brandon B. Brown, and Trial Attorney Julie Mosley of the U.S. Department of Justice’s Capital Case Section prosecuted the case.
Jury Finds Former Bank Director Guilty of Embezzling FundsRead the Press Release
PITTSBURGH - After deliberating eight hours, over two days, a federal jury of five men and seven women found Michael P. Bernick guilty of nine counts of misapplication of funds by a bank director, United States Attorney David J. Hickton announced today.
Michael P. Bernick, 51, of Pittsburgh, PA, was tried before United States District Judge Arthur J. Schwab in Pittsburgh, Pennsylvania.
According to Assistant United States Attorney Carolyn J. Bloch, who prosecuted the case with the assistance of Special Assistant United States Attorney Regina Sandler of the Federal Deposit Insurance Corporation, the evidence presented at trial established that Bernick, a Director of the Metropolitan Savings Bank, formerly located in the Lawrenceville section of Pittsburgh, embezzled and misapplied in excess of $350,000 from the bank between January 2005 and March 2006. Donna Shebetich, Bernick’s girlfriend and the former Director and Vice President of Metropolitan, provided him with nine monetary disbursements from the bank’s checking account in the form of seven cashier’s checks and two wire transfers payable to Bernick, himself, or to financial institutions used to pay off his loans.
Bernick did not complete any loan applications, sign notes, or provide security for the monetary advances. Metropolitan’s procedures required that all advances be approved by the Board of Directors. Neither Bernick nor Shebetich sought the authorization from the Board of Directors, either before or after the advances were extended. Shebetich is currently serving a six-year term of imprisonment for filing false quarterly reports with the FDIC, which further secreted Bernick’s conduct.
Judge Schwab scheduled sentencing for Feb. 19, 2015, at 9:30 a.m. The law provides for a total sentence at each count of 30 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued defendant on bond.
The Federal Deposit Insurance Corporation and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Bernick.
Jefferson County Man Indicted on Federal Bank Robbery ChargesRead the Press Release
St. Louis, MO – CHRISTOPHER DAVID HENDRICKS, JR. was indicted for his alleged August 29 robbery of the First State Community Bank in DeSoto, Missouri.
Hendricks, Hillsboro, MO, was indicted by a federal grand jury on one felony count of robbery of a federally-insured institution. He appeared for arraignment in federal court this morning.
If convicted, this charge carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Japanese Company Agrees to Plead Guilty to Price Fixing on Ocean Shipping Services for Cars and TrucksRead the Press Release
Kawasaki Kisen Kaisha Ltd. (K-Line), a Japanese corporation, has agreed to plead guilty and to pay a $67.7 million criminal fine for its involvement in a conspiracy to fix prices, allocate customers, and rig bids of international ocean shipping services for roll-on, roll-off cargo, such as cars and trucks, to and from the United States and elsewhere, the Department of Justice announced today.
According to a one-count felony charge filed today in U.S. District Court for the District of Maryland in Baltimore, K-Line conspired to suppress and eliminate competition by allocating customers and routes, rigging bids and fixing prices for the sale of international ocean shipments of roll-on, roll-off cargo to and from the United States and elsewhere, including the Port of Baltimore. K-Line participated in the conspiracy from at least as early as February 1997 until at least September 2012. K-Line has agreed to cooperate with the Department’s ongoing antitrust investigation. The plea agreement is subject to court approval.
Roll-on, roll-off cargo is non-containerized cargo that can be both rolled onto and rolled off of an ocean-going vessel. Examples of this cargo include new and used cars and trucks and construction and agricultural equipment.
“Our efforts exposed a long-running global conspiracy that operated globally, affecting the shipping costs of staggering numbers of cars, into and out of the Port of Baltimore, and other ports in the United States and across the globe. Today’s announcement demonstrates our continuing resolve to bring the members of this conspiracy to justice. ” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “We are continuing our efforts to ensure that both the corporations and individuals involved in this cartel are held accountable for their acts and the harm they inflicted on American consumers.”
According to the charge, K-Line and its co-conspirators conspired by, among other things, agreeing – during meetings and communications – on prices, allocating customers, agreeing to refrain from bidding against one another and exchanging customer pricing information. The department said the companies then charged rates in accordance with those agreements for international ocean shipping services for certain roll-on, roll-off cargo to and from the United States and elsewhere at collusive and non-competitive prices.
K-Line is charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of a $100 million criminal fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging, and other anticompetitive conduct in the international roll-on, roll-off ocean shipping industry, which is being conducted by the Antitrust Division’s Washington Criminal I Section and the FBI’s Baltimore Field Office, along with assistance from the U.S. Customs and Border Protection Office of Internal Affairs, Washington Field Office/Special Investigations Unit. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal I Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.html, or call the FBI’s Baltimore Field Office at 410-265-8080.
Indictments Charge 40 Alleged Drug TraffickersRead the Press Release
Drug gang used Chester playground to stash drugs and guns
PHILADELPHIA – Federal, state, and local law enforcement, today, arrested more than 30 people on charges of distributing drugs in and around the city of Chester, PA. The operation targeted alleged members of the violent Rose and Upland Drug Trafficking Group (“DTG”) and coincided with the unsealing of 14 indictments charging 40 people. The group is charged with selling drugs, illegally carrying guns and stashing both drugs and guns in a neighborhood playground.
The main indictment is a 261-count superseding indictment that charges 22 of the 40 defendants with operating a drug market within the Rose and Upland neighborhood on the east side of Chester City. According to the indictment, William Dorsey ran the operation, sold multiple kilograms of cocaine, often in the form of crack, to members of the group and others. One of the group’s largest alleged cocaine and heroin suppliers, Paris Church, has been charged in five separate indictments alleging that he, along with others, distributed and attempted to obtain approximately 25 kilograms of cocaine for re-distribution.
The charges were announced today by United States Attorney Zane David Memeger, Delaware County District Attorney Jack Whelan, Drug Enforcement Administration Acting Special Agent-in-Charge Robert R. Niczyporowicz, FBI Special Agent-in-Charge Edward J. Hanko, and Chester Police Chief Joseph Bail.
According to the superseding indictment, the DTG was distributing cocaine, crack cocaine, and heroin to customers in their territory and elsewhere between September 2012 and 2014. Charged with Dorsey are: Donald Womack, Sr., Paris Church, Braheem Edwards, Naim Butler, Ronell Whitehead, Michael Lewis, Breon Burton, JaVaughn Anderson, Robert Duson, Spencer Payne, Satchel Johnson, Alonzo Jones, Jamear McGurn, Classie Mae Dorsey, Herman Purnell, Dondre Ellis, Erven Towers-Rolon, John Dennis, Charles Stansbury, Waali Shepherd, and Kareem York. The defendants are also charged with maintaining a drug house, possessing firearms in furtherance of drug trafficking crimes, and distributing cocaine, crack and heroin within 1,000 feet of area schools and a playground. Some of the defendants are also charged with being felons in possession of firearms. During the investigation, 15 firearms were recovered.
Several other individuals are charged in separate indictments with drug trafficking conspiracies and other drug distribution offenses. Included in those indictments are: Kareem Bannister, George King, Nathaniel Coles, Lamont Carter, Rafael Hunt-Irving, Michael Pinkney, Solomon Whitaker, Shmeca Melvin, Anthony Floyd (of North Carolina), Steven Miller (of Maryland), and Anthony Potter, Shawn Mills, Tiffany Beauford, Farud Gigetts, Avery Mosley, Al-Ghani Rasheed, Steven Crews, and LaQuan Allen.
According to the superseding indictment, members of the DTG who sold cocaine hid the drugs in various "stash" locations in order to avoid having drugs on them if they were stopped by police. Those stash locations included playgrounds, abandoned houses, alley ways, trash cans, mailboxes, windowsills, and other locations in the neighborhood. Members of the RUDTG controlled the drug sales in the Rose and Upland geographic territory and did not permit non-group members to sell drugs in that area. To protect their territory and drug trafficking activities, members routinely carried, and sometimes used, loaded firearms or had firearms available in hidden locations, including their stash locations.
“The people who live in the city of Chester, particularly in the area surrounding Rose and Upland Streets, deserve a break,” said Memeger. “They deserve better. And we will keep going back there until we release the choke hold these drug organizations have on that community. This is the third major multi–agency law enforcement initiative in that city and we will continue to commit the federal resources necessary to free the many good, hardworking citizens who call Chester home from violent drug traffickers.”
"Today, a major step was taken to make the City of Chester, PA a safer place” said DEA Acting Special Agent-in-Charge Bob R. Niczyporowicz. “The outstanding cooperation between the local, state and federal partners utilizing their resources led to the infiltration and dismantlement of this violent DTO, which had a stronghold on the streets of Chester. Taking the entire hierarchy of this organization off the streets should have a significant impact and help improve the safety and welfare of the residents of Chester.”
“These arrests dismantle an insidious drug trafficking organization that operated throughout the city for years and will make a significant dent in criminal activity and violence not only in Chester but in surrounding communities,” said District Attorney Jack Whelan. “This is an excellent example of collaboration among law enforcement that sends a clear message that we are continuing to aggressively work together to address the violent gang problems that communities like Chester have faced for too long.”
“Residents of a city blighted by violence often feel like law enforcement has just given up,” said FBI Special Agent-in-Charge Ed J. Hanko. “Well, that’s clearly not the case with the FBI, and all of the partners involved in today’s arrests. We’ll keep working to make Chester’s streets safer -- corner by corner, block by block."
“In my 43 years of police work, I’m most amazed by the good, old-fashioned, boots-on-the-ground law enforcement effort that achieved today’s result,” said Chester Police Chief Joseph Bail. “Running a close second is the collaborative focus among the local, state, and federal agencies, all in the name of making Chester a safer place.”
For information regarding the defendants, including potential sentences, see attached chart.
The government has given notice of intent to forfeit 15 firearms seized during the investigation, along with approximately $1.8 million proceeds derived from the crimes charged.
The case was investigated by the Delaware County Office of the District Attorney’s Criminal Investigation Division, the Drug Enforcement Administration, the Federal Bureau of Investigation, the Chester Police Department, and the Pennsylvania State Police. Also providing substantial manpower and assistance in the arrests were agents from the United States Marshall Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorneys Faithe Moore Taylor, Ashley K. Lunkenheimer, and A. Nicole Phillips.
Defendant Information
Click here to see indictments for: Dorsey,etal; Rasheed; Gigetts; Coles; Carter; Womack; Church,etal; Church,Womack; Potter; Mosley; Mills etal; Butler; Bannister; Allen
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Gardiner Man Indicted on Pharmacy Robbery ChargeRead the Press Release
Contact: Julia M. Lipez
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Robert
Richard, 26, of Gardiner, Maine, was indicted by a federal grand jury in Portland on Tuesday and charged with Interference with Commerce by Robbery, in connection with the November 28, 2013 (Thanksgiving Day) robbery of the Rite Aid pharmacy in Bridgton, Maine.Court records reveal that Richard was arrested and made his first appearance in federal court yesterday. A detention hearing is scheduled for Tuesday, September 30, 2014. If convicted, Richard faces up to 20 years in prison and a $250,000 fine.
The case was investigated by the Federal Bureau of Investigation and the Bridgton Police
Department, with assistance from the Augusta and Gardiner Police Departments, and the
Kennebec County Sheriff’s Office.An indictment is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law.
Four Plead Guilty in Million Dollar Bank Bribery CaseRead the Press Release
SAN DIEGO - Israel Hechter, the owner of San Diego-based mortgage investment firms Ocean 18, LLC, and Note Tracker Corporation, admitted in federal court today that he paid $1 million in bribes to bank insiders at J.P. Morgan Chase Bank, GMAC Mortgage, LLC, and National City Bank.
According to his plea agreement, in exchange for the bribes, the bankers arranged for Hechter to win bids to purchase mortgage loans issued by the banks and sold on the secondary market. In order to make sure that Hechter’s bids won, the bankers corrupted the process by altering bids, rejecting other bids, and erasing or ignoring bids from qualified competitors. The bankers also rigged the bidding by supplying Hechter with confidential information about prices and competing bids.
Assistant U.S. Attorney Phillip L.B. Halpern noted in court today that it was essential that the Department of Justice police the $10 trillion secondary mortgage market to ensure that there was a level playing field for all investors. “Individuals and corrupt bank employees who attempt to tilt this playing field for their own advantage cannot be tolerated,” he told the court.
Hechter’s brother, Amir Hechter, and his business associate, Jack Prober, pleaded guilty on Wednesday to participating in the conspiracy. Both Prober and Amir Hechter admitted writing personal checks to the bankers in order to assist the bankers in evading taxes on the illegal income. Israel and Amir’s father, Zeev Hechter, also admitted participating in the conspiracy. In entering his guilty plea on Tuesday, Zeev Hechter admitted hand-delivering approximately $330,000 in cash to GMAC banker Robert Moreno. In addition to meeting Zeev Hechter on New York City street corners, Moreno met him at Hechter’s car wash where the conspirators “laundered” the bribes. Each time they met, Zeev Hechter handed Moreno a bag containing tens of thousands of dollars in cash.
Moreno was arrested on July 15, 2014, for his alleged role in the conspiracy. As alleged in his charging documents, Moreno accepted hundreds of thousands of dollars in bribes in return for steering GMAC mortgages to Hechter’s company. After this relationship developed, Moreno allegedly used his position at the bank to help Hechter win bids to purchase mortgages – which Hechter previously had trouble winning. Moreno’s case is pending before U.S. District Judge Roger T. Benitez. A trial date has not been set.
According to his plea agreement, Israel Hechter and his coconspirators attempted to cover up the bribes by pretending that they were legitimate “commissions” unrelated to the bankers’ positions with the banks, using a phony “Consulting Agreement,” a sham business and a corresponding bank account to disguise the bribes.
Many of the mortgages at issue were non-performing or distressed second mortgages. Israel Hechter pooled the loans and sold share of the pools to investors, usually friends and family members including Zeev Hechter, Amir Hechter, and Jack Prober, each of whom invested in the pools. After purchase, Ocean 18, LLC would service the loans and collect monthly payments from the borrowers, or would initiate foreclosure proceedings when the borrowers defaulted. The investors made money when borrowers made payments, sold the properties, or after foreclosure and re-sale.
The mortgages at issue were purchased on the secondary market, after the banks had issued funds to homeowner borrowers. Secondary purchasers of mortgages provide primary lenders with additional capital and reduced credit risk, and in turn provide borrowers with greater access to mortgage loans. The secondary mortgage market in the United States exceeds $10 trillion.
Each of the four guilty pleas were taken before U.S Magistrate Judge Mitchell D. Dembin. The defendants are scheduled to be sentenced by Judge Benitez on January 5, 2015, at 9 a.m.
“People who think they can manipulate and bribe their way into the winner’s circle should take note: The integrity of our financial system is not for sale,” said U.S. Attorney Laura Duffy. “This behavior is criminal, and there are consequences.”
“The defendants in this case knowingly engaged in a pattern of corruption by paying hundreds of thousands of dollars in bribes to those responsible for ensuring the integrity of financial transactions,” said FBI Acting Special Agent in Charge, Robert Howe. “Today's conviction sends a clear message that the FBI will not allow greed and corruption to undermine our financial markets. The FBI will continue to pursue these cases to ensure confidence and trust in our financial markets.”
“Professionals, including bankers who line their pockets with the payment of illicit bribes, should know they will not go undetected and will be held accountable,” said IRS Criminal Investigation’s Special Agent in Charge Erick Martinez. “IRS Criminal Investigation is working hard to ensure that all forms of income are taxed, including income from illegal sources.”
The swift resolution of these bribery and tax charges was the result of coordinated investigations by the Federal Bureau of Investigation, the Federal Housing Finance Agency – Office of Inspector General, and Internal Revenue Service, Criminal Investigation.
DEFENDANTS PLEADING GUILTY Israel Hechter Age: 47 San Diego, CA Amir Hechter Age: 42 San Diego, CA Jack Prober Age: 56 La Jolla, CA Zeev Hechter Age: 68 Aventura, FL CHARGESConspiracy to commit bank bribery and tax evasion, in violation of 18 U.S.C. § 371.
Maximum Penalties: 5 years in prison, $250,000 fine or twice the pecuniary gain or loss resulting from the offense, $100 special assessment, restitution.
DEFENDANT FACING CHARGES Robert Moreno Age: 42 Tempe, AZ CHARGESBank bribery, in violation of 18 U.S.C. § 215
Maximum Penalties: 30 years in prison, $1,000,0000 fine or three times the value of the bribe, $100 special assessment, restitution
INVESTIGATING AGENCIESFederal Bureau of Investigation
Federal Housing Finance Agency – Office of Inspector General
Internal Revenue Service, Criminal Investigation*As to defendant Robert Moreno, the public is reminded that the charges are not evidence that the defendant committed the crime charged. The defendant is presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Former Owner of Durable Medical Equipment Company Arrested in Health Care Fraud and Money Laundering SchemeRead the Press Release
A Miami man was arrested today on health care fraud and money laundering charges in connection with an alleged $24 million scheme to defraud Medicare.
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; Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office; Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office; Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services, Office of Inspector General’s (HHS-OIG) Miami Regional Office; and Special Agent in Charge Mike Fields of HHS-OIG’s Dallas Regional Office made the announcement.
Angel M. Mirabal, 61, of Miami, was arrested on a previously sealed indictment returned by a grand jury in the Southern District of Florida charging him with conspiracy to commit health care fraud and conspiracy to commit money laundering of health care fraud proceeds, as well as 10 substantive money laundering counts.
According to the indictment, Mirabal operated Quick Solutions Medical Supplies Inc., a durable medical equipment (DME) supply company located in Houston, Texas. From April 2010 through July 2013, Mirabal allegedly conspired with individuals who operated other DME companies to submit approximately $24 million in fraudulent claims for reimbursement to Medicare. These claims represented that Quick Solutions and others provided DME, such as wound care supplies, to Medicare beneficiaries when, in fact, these items were not medically necessary and were not actually provided. Many of the Medicare beneficiaries who supposedly received DME from Quick Solutions resided hundreds of miles away in Miami. Mirabal and his co-conspirators allegedly used fraudulent shell companies to launder and disburse the proceeds from the health care fraud scheme.
An indictment is only an accusation, and a defendant is presumed innocent until and unless proven guilty.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorney Timothy P. Loper 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 and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
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Former Owner of Durable Medical Equipment Company Arrested in Health Care Fraud and Money Laundering SchemeRead the Press Release
A Miami man was arrested today on health care fraud and money laundering charges in connection with an alleged $24 million scheme to defraud Medicare.
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; Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office; Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office; Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services, Office of Inspector General’s (HHS-OIG) Miami Regional Office; and Special Agent in Charge Mike Fields of HHS-OIG’s Dallas Regional Office made the announcement.
Angel M. Mirabal, 61, of Miami, was arrested on a previously sealed indictment returned by a grand jury in the Southern District of Florida charging him with conspiracy to commit health care fraud and conspiracy to commit money laundering of health care fraud proceeds, as well as 10 substantive money laundering counts.
According to the indictment, Mirabal operated Quick Solutions Medical Supplies Inc., a durable medical equipment (DME) supply company located in Houston, Texas. From April 2010 through July 2013, Mirabal allegedly conspired with individuals who operated other DME companies to submit approximately $24 million in fraudulent claims for reimbursement to Medicare. These claims represented that Quick Solutions and others provided DME, such as wound care supplies, to Medicare beneficiaries when, in fact, these items were not medically necessary and were not actually provided. Many of the Medicare beneficiaries who supposedly received DME from Quick Solutions resided hundreds of miles away in Miami. Mirabal and his co-conspirators allegedly used fraudulent shell companies to launder and disburse the proceeds from the health care fraud scheme.
An indictment is only an accusation, and a defendant is presumed innocent until and unless proven guilty.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorney Timothy P. Loper 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 and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
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.
Former Office Manager for Chatham Fire Protection District Pleads Guilty to Theft of FundsRead the Press Release
Springfield, Ill. – A former office manager for the Chatham Fire Protection District, Dawn D. Sanchez, 45, of Auburn, Ill., pled guilty today to using her position to take more than $50,000 from the district for her personal use. Sanchez waived indictment and entered a plea of guilty to one count of mail fraud before U.S. Magistrate Judge Thomas P. Schanzle-Haskins.
As office manager, Sanchez had check-signing authority and control over the fire protection district’s bank account and credit and debit cards, and was responsible for paying the district’s business expenses. During her court appearance, and according to court documents, Sanchez admitted that from Jan. 1, 2009, to July 31, 2012, she fraudulently and repeatedly wrote CFPD checks to herself for payment of personal expenses of approximately $32,000 and used the CFPD credit and debit cards to purchase more than $15,000 in money orders that were cashed and deposited into her personal bank account. Sanchez admitted that the funds, estimated at $52,520, were used to pay various personal expenses including insurance, credit card payments, and repayment on a loan.
The investigation was conducted by agents of the U.S. Postal Inspection Service and the Chatham Police Department with the full cooperation of the Chatham Fire Protection District. The case is being prosecuted by Assistant U.S. Attorney Timothy A. Bass.
Sanchez is currently on bond awaiting sentencing, which is scheduled on Jan. 26, 2015, before U.S. District Judge Sue E. Myerscough.
At sentencing, Sanchez faces a maximum possible penalty of up to 20 years in prison, a fine of up to $1,000,000, and a term of supervised release of up to five years to follow any term of imprisonment. The defendant may also be ordered to pay restitution.
Former Manager of Bronx-Whitestone Bridge Construction Project Charged in White Plains Federal Court with FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, today announced the filing of a criminal Complaint charging AARON TUBBS, 43, of Hastings-on-Hudson, Westchester County, New York, formerly a Regional Manager at a General Contractor that performed an approximately $192 million construction project on Bronx-Whitestone Bridge (the “Bridge Project”), with wire fraud in connection with the requirements for participation by minority-owned and women-owned businesses on the Bridge Project. TUBBS surrendered today and was presented on the charge in the Complaint before U.S. Magistrate Judge Paul E. Davison in the federal courthouse in White Plains.
U.S. Attorney Preet Bharara stated: “A major construction project was awarded precisely because it opened opportunities for minority-owned and women-owned businesses. As alleged, these businesses were unlawfully bypassed and deprived of participation. I want to commend our partners: the Offices of Inspector General for the U.S. Department of Transportation, the Port Authority and the Metropolitan Transportation Authority, and the New York State Department of Transportation’s Investigations bureau.”
According to allegations in the Complaint:
The Office of Inspector General of the United States Department of Transportation, together with the Metropolitan Transit Authority (“MTA”) Inspector General, the Port Authority of New York and New Jersey Office of Inspector General, and the New York State Department of Transportation, have conducted an investigation of a company, hereinafter referred to as “MBE-1,” used by general contractors repeatedly on large construction projects in Westchester County, the Bronx, Manhattan, Staten Island, and elsewhere, to obtain credit toward goals required for participation by minority-owned business enterprises and women-owned business enterprises (“MBEs” and “WBEs”) and/or their federal equivalent, disadvantaged business entity (“DBE”) goals. During the investigation, based on numerous interviews and the review of documents, agents learned that MBE-1 was repeatedly used in a scheme, described below, known as “DBE fraud,” “MBE fraud,” and “pass through fraud,” to give the appearance that a minority-owned or woman-owned entity was performing work on a government-funded construction project when in fact other companies, which were not minority-owned or woman-owned, did the work. Among the construction projects in which MBE-1 was used in a fraudulent scheme was the Bronx-Whitestone Bridge Construction Project.
In connection with the investigation, the sole owner and principal of MBE-1 was convicted upon a guilty plea in March 2013, in United States District Court in White Plains, New York, of mail fraud.
The Bronx-Whitestone Bridge
Construction Project
In or about 2008, the MTA initiated a major construction project on the Bronx-Whitestone Bridge (the “Bridge Project”), a suspension bridge over the East River that connects the Bronx and Queens. The project was to replace the Bronx approach and perform repairs to the Queens approach of the Bridge. The MTA estimated that the project would cost approximately $170 million and take approximately four years to complete.
As part of its solicitation for bids on the Bridge Project, the MTA – a “state agency” for purposes of the MBE/WBE Provisions – specified that the Bridge Project was funded by New York State, and therefore that New York State Executive Law Article 15-A governing participation on construction projects by MBEs and WBEs applied. The MTA set an MBE/WBE goal on the Bridge Project of 7% participation by MBEs and 3% by WBEs, for a total of 10%. In connection with setting the MBE/WBE goal, the MTA noted that there were subcontracting opportunities on the Bridge Project, and provided a list of certified MBEs and WBEs with the capability of providing services on the job.
On or about October 23, 2008, a general contractor (“General Contractor-1”) was awarded the contract on the Bridge Project, at a price of approximately $192 million.
In or about 2008 and 2009, AARON TUBBS, the defendant, was a Regional Manager at General Contractor-1. TUBBS participated in, among other things, the award and performance of subcontracts to provide structural steel on the Bridge Project.
In connection with the Bridge Project, General Contractor-1 claimed, in utilization forms and compliance reports, that structural steel would be supplied by a certified MBE, MBE-1, but actually the structural steel was provided by other companies, and MBE-1 was used as a pass-through. In fact, MBE-1 did not meaningfully participate in the Bridge Project, and it received only a small fraction of the state funds that General Contractor-1 represented it had received. The principal of MBE-1 once attempted to enter the Bridge Project job site, and was denied entry.
AARON TUBBS, the defendant, in his capacity as a Regional Manager at General Contractor-1, participated in setting up the fraudulent scheme, creating the pass-through arrangement between General Contractor-1, the MBE, and the actual steel suppliers. For example, according to a representative of a steel supplier (“Supplier 1”), after Supplier 1 agreed to a contract with General Contractor-1, AARON TUBBS, the defendant, informed Supplier 1 that General Contractor-1 would run purchases of structural steel from Supplier 1 through MBE-1 for purposes of meeting minority requirements. Thereafter, in order to purchase the structural steel from steel manufacturers, General Contractor-1 received from Supplier 1 purchase order information, arranged for the information to be placed on letterhead of MBE-1, and arranged for the purchase order to be submitted to the steel manufacturer.
In addition, AARON TUBBS, the defendant, and others at General Contractor-1, sought to employ the same pass-through scheme used on the Bridge Project on another project. The St. George Ferry Terminal construction project was a federally-funded job under the American Recovery and Reinvestment Act of 2009, in Staten Island. The construction project had a goal of nine percent participation by Disadvantaged Business Entities (“DBEs”). General Contractor-1 sought to meet this goal using a DBE as a pass-through. For example, on or about November 9, 2009, General Contractor-1’s field engineer sent an email to another representative of General Contractor-1 stating, in part, “We will be handling rebar at St. George similar to how [General Contractor-1] set up the Whitestone structural steel purchase with [MBE-1]. Aaron Tubbs mentioned that I get in contact with you to describe that process, as we will have our rebar installer, [a purported DBE], manage the material with [another non-DBE company].”
TUBBS is charged with wire fraud, in violation of Title 18, United States Code, Sections 1343 and 2, and faces a maximum of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the investigative work of USDOT’s Office of Inspector General, the Port Authority Office of Inspector General, the Metropolitan Transportation Authority Office of Inspector General, and the New York State Department of Transportation’s Investigations Bureau.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Benjamin Allee is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
TubbsAaron.Complaint
Former Erie Man Sentenced to 12 Years in Prison Violating Federal Firearms LawsRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 144 months in prison on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill, Jr. imposed the sentence on Joseph Lee Ollie, 56.
According to information presented to the court, on December 5, 2012, Ollie pled guilty to falsifying statements on an application/record of sale in an attempt to purchase a firearm. In a separate case, on January 29, 2014, Ollie was found guilty by a jury of unlawfully possessing a stolen Mossberg Model 500 shotgun while being prohibited from firearm possession because he is a convicted felon. In addition, at the time Ollie possessed the stolen firearm, he was subject to a domestic abuse restraining order, prohibiting him from firearm possession.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pennsylvania State Police for the investigation leading to the successful prosecution of Ollie.
Final Member of Valley Drug Rip Crew Sentenced in Case That Resulted in A DeathRead the Press Release
PHOENIX – On Sept. 25, 2014, the final defendant was sentenced in connection with Operation Push the Pawn – an investigation of a Phoenix area drug rip crew conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Internal Revenue Service and the Phoenix Police Department. Fourteen defendants were sentenced in the case and seven defendants received sentences that ranged from 6 to 15 years in prison for their roles in armed robberies, marijuana trafficking and a murder that took place on Jan. 27, 2011.
Beginning in Sept. 2009 to Jan. 27, 2011, the defendants were part of a drug trafficking organization and drug robbery crew that bought and stole marijuana from drug dealers. The stolen marijuana would be divided amongst the robbery crew members as payment, and they would then sell the stolen marijuana either locally or out of state. On Jan. 27, 2011, some of the defendants planned to conduct an armed robbery to steal 200 pounds of marijuana from drug dealers and when they attempted to take the marijuana by force, a passenger of the vehicle containing the marijuana shot multiple rounds at the robbery crew members, who returned fire. During the exchange, Brandon Edwards was fatally wounded. Both vehicles left at a high rate of speed, leaving Brandon Edwards in the middle of the street. Police responded to the location and transported Edwards to a local hospital where he was pronounced dead from gunshot wounds.
The following sentences were imposed by U.S. District Court Judge David Campbell:
On April 28, 2014, William Cobb, 29, of Phoenix, Ariz., was sentenced to 8.5 years in prison. Cobb pleaded guilty on Feb. 3, 2014, to possession with intent to distribute marijuana, and aid and abet possession and use of a firearm during and in relation to a drug trafficking offense or a crime of violence.
On May 12, 2014, Robert Barber, 32, of Phoenix, Ariz., was sentenced to 6 years in prison. Barber pleaded guilty on Feb. 4, 2014, to possession and use of a firearm during and in relation to a drug trafficking offense or a crime of violence.
On May 12, 2014, Muhammed Muhammed, 30, of Phoenix, Ariz., was sentenced to 15 years in prison. Muhammed pleaded guilty on Feb. 7, 2014, to possession and use of a firearm during and in relation to a drug trafficking offense or a crime of violence resulting in death.
On May 22, 2014, Daris Bush, 30, of Chandler, Ariz., was sentenced to 13 years in prison. Bush pleaded guilty on Feb. 7, 2014, to aid and abet possession and use of a firearm during and in relation to a drug trafficking offense or a crime of violence resulting in death.
On June 3, 2014, Dominic Chatman, 27, of Mesa, Ariz., was sentenced to 8.5 years in prison. Chatman pleaded guilty on Feb. 7, 2014, to possession with intent to distribute marijuana, and aid and abet possession and use of a firearm during and in relation to a drug trafficking offense or a in a crime of violence.
On Aug. 27, 2014, Charles Young, 29, of Tempe, Ariz., was sentenced to 7 years in prison. Young pleaded guilty on Feb. 3, 2014, to possession and use of a firearm during and in relation to a drug trafficking offense or a crime of violence.
On Sept. 4, 2014, Reginald Edwards, 28, of Phoenix, Ariz., was sentenced to 7 years in prison. Edwards pleaded guilty on June 16, 2014, to aid and abet Hobbs Act robbery, and possession with intent to distribute marijuana.
On Sept. 25, 2014, Isaac Reed, 32, of Phoenix, Ariz., was sentenced to 2 years in prison. Reed pleaded guilty on Feb. 6, 2014, to conspiracy to possess with the intent to distribute marijuana.
The investigation in this case was conducted by agencies participating in the Organized Crime Drug Enforcement Task Force. The lead agencies were the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Drug Enforcement Administration, Internal Revenue Service Criminal Investigation, and the Phoenix Police Department. The prosecution was handled by Keith Vercauteren and Glenn McCormick, Assistant U.S. Attorneys, District of Arizona, Phoenix.
NUMBER: CR-12-1793-PHX-DGC
RELEASE NUMBER: 2014-052_Reed et alFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Federal Jury Finds Rio Arriba County Sheriff Thomas R. Rodella Guilty on Criminal Civil Rights and Firearms ChargesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Albuquerque, N.M., returned a verdict earlier today finding Rio Arriba County Sheriff Thomas R. Rodella guilty on criminal civil rights and firearms charges after a five-day trial. The jury’s verdict was announced by U.S. Attorney Damon P. Martinez and Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division.
Sheriff Rodella, 52, of Española, N.M., was charged in a two-count indictment arising out of a March 11, 2014 incident occurring in Rio Arriba County, N.M., during which he engaged in the high-speed pursuit and unreasonable seizure of a victim identified as “M.T.” Count 1 of the Indictment charged Sheriff Rodella with violating the victim’s civil rights by subjecting him to an unreasonable seizure while acting under color of law. Count 2 charged the Sheriff with brandishing a firearm during a crime of violence.
Trial of this case began on Sept. 22, 2014, and concluded this afternoon when the jury returned a verdict of guilty on both counts of the indictment. The trial evidence established that on March 11, 2014, Sheriff Rodella and his son Thomas Rodella, Jr., who were in the Sheriff’s personal vehicle, engaged in a high-speed pursuit of the victim and used the Sheriff’s vehicle to block the victim’s vehicle on a dead-end lane. The victim testified that Sheriff Rodella, who was not in uniform, jumped out of his vehicle with firearm in hand, entered the victim’s vehicle, and assaulted the victim with the firearm. The Sheriff’s son dragged the victim out of his vehicle and identified the victim’s assailant as the Sheriff. When the victim requested to see Sheriff Rodella’s badge, the Sheriff pulled the victim’s head up by his hair and slammed his badge into the victim’s face. The victim testified that he suffered injuries to his face and his hand.
The evidence also established that Sheriff Rodella instructed his deputies to arrest the victim and detain him at the Rio Arriba County Detention Center. The victim testified that he was released from custody two days later after appearing before a state magistrate. The charges against the victim were dismissed on March 26, 2014. Deputies of the Rio Arriba Sheriff’s Office testified they did not conduct any investigation of the incident or prepare any reports until after the case was dismissed.
“The vast majority of law enforcement officers work courageously every day to make our communities safe. Because officers who serve with honor and integrity deserve our respect and support, it is vitally important to prosecute those who violate their oaths of office and the public trust placed in them,” said U.S. Attorney Damon P. Martinez. “Today a federal jury found that in attacking an innocent civilian, Sheriff Rodella chose to abuse his power rather than uphold his oath to protect the public. I commend the victim who testified in this case for having the courage to step forward and assert his civil rights, and for trusting the Department of Justice to protect him. I am hopeful that today’s verdict brings a measure of justice to the victim and the people of Rio Arriba County.”
“It’s a sad day whenever a law enforcement official is found guilty of abusing his position, especially when he is the elected head of his agency and should set the example,” said FBI Special Agent in Charge Carol K.O. Lee. “The FBI takes no joy in today’s verdict. We hope it sends a message to public servants everywhere: the FBI will make sure you are held accountable if you violate the trust your fellow Americans place in you. I want to thank the FBI Special Agents and support staff for their hard work during this investigation, as well as the U.S. Attorney’s Office for their assistance in this case.”
Sheriff Rodella was remanded into custody after the jury returned its verdict and he will remain detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Sheriff Rodella faces a statutory maximum penalty of ten years in prison on the criminal civil rights charge. On the firearms charge, Rodella faces a mandatory seven years in prison to be served consecutive to any sentence imposed on the other charges.
The case was investigated by the Albuquerque and Santa Fe offices of the FBI and is being prosecuted by Assistant U.S. Attorneys Tara C. Neda and Jeremy Peña.
Federal Judge Sentences Columbia, S.C. Attorney for Making A False Statement to A Federal AgentRead the Press Release
COLUMBIA, S.C. – On Tuesday, September 23, 2014, U.S. District Judge Margaret B. Seymour sentenced Joenathan Shelly Chaplin, an attorney in Columbia, S.C. to three years of probation for making a false statement to a federal agent, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Judge Seymour ordered Chaplin to spend the first six months of his probationary sentence in home confinement with electronic monitoring and to pay a $100 assessment fee.
Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI); John S. Comer, Acting Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA) which overseas South Carolina, and Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) join U.S. Attorney Tompkins in making today’s announcement.
According to court documents and yesterday’s sentencing hearing, Chaplin, 47, admitted to knowingly and willfully making a materially false, fictitious, and fraudulent statement and representation to the government. According to court records, Chaplin’s false statements to federal agents occurred when he was questioned in relation to a drug and firearm investigation. Court records show that during that investigation, it was determined that Chaplin was directing his criminal defendant clients to pay his fees in a structured manner to avoid reporting those payments to the IRS. When questioned about this practice Chaplin lied to federal investigators. Court records indicate that Chaplin also told an IRS agent that he was not aware of the reporting requirements of IRS’s Form 8300, which is a “Report of Cash Payments Over $10,000 Received in a Trade or Business” and must be filed with the IRS if a person or business has received over $10,000 in one transaction or a series of related transactions while conducting their trade or business.
The case was investigated by IRS-CI, DEA and ATF. The prosecution was handled by Assistant U.S. Attorney Jill Westmoreland Rose of the U.S. Attorney’s Office for the Western District of North Carolina in Charlotte, upon recusal of the U.S. Attorney’s Office for the District of South Carolina.
Federal Grand Jury Indicts Two Men in Separate Child Exploitation CasesRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted two men in unrelated child exploitation cases that both involved production of child pornography, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Richard D. Schwein Jr., and Homeland Security Investigations Special Agent in Charge Raymond R. Parmer Jr.
A four-count indictment filed in U.S. District Court charges ELLIS ORRELL ATKINSON IV, 37, of Huntsville, with one count of producing child pornography, two counts of possessing child pornography and one count of receiving child pornography.
The indictment charges that Atkinson, who was convicted in state court in Madison County in 2002 for possessing child pornography, used a child to engage in sexually explicit conduct in June 2013 so he could photograph it.
The indictment also charges that Atkinson possessed child pornography involving children younger than 12 in July 2013 and May 2013, and that he received child pornography over the Internet in November 2012.
A separate seven-count indictment charges an Etowah County man, VICTOR GRAY DINGLER, 33, with producing child pornography between 2008 and 2014, and with possessing child pornography depicting children younger than 12. Some of the child pornography produced involved a 3-year-old, according to the indictment.
Each production of child pornography charge against Dingler carries a maximum penalty of 30 years in prison and a $250,000 fine. The possession of child pornography charges each carry a maximum sentence of 20 years in prison and a $250,000 fine.
Atkinson, because of his prior child pornography conviction, faces a maximum sentence of 50 years in prison and a $250,000 fine on the production count and 40 years in prison and a $250,000 fine on the receipt count, as well as the 20 years in prison and a $250,000 fine on each possession count.
The FBI investigated the case against Atkinson, which Assistant U.S. Attorney Mary Stuart Burrell is prosecuting.
The Department of Homeland Security-HSI and the Etowah County Sheriff's Department investigated the case against Dingler, which Assistant U.S. Attorneys Jacquelyn Hutzell and Xavier Carter are prosecuting.
Members of the public are reminded that an indictment contains only charges. A defendant is presumed innocent of the charges and it will be the government's burden to prove guilt beyond a reasonable doubt at trial.