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17 September 2014
American from Philippines Sentenced for Abusive Sexual Contact of A MinorRead the Press Release
Rennie W. Wells, 74, most recently living in the Philippines, was sentenced on September 15, 2014, by United States District Judge Aleta Trauger, to 78 months in prison for abusive sexual contact with a minor, announced David Rivera, United States Attorney for the Middle District of Tennessee. The prison sentence will be followed by 15 years of supervised release. Wells had previously pleaded guilty to the offense on April 10, 2014.
Wells’ conviction and sentencing came after an investigation that began in September 2005, after Wells was observed fondling a four year old girl while attending a cookout on the Fort Campbell Army Base. Wells and his wife, who had been doing missionary work for a church in the Philippines, were home in the United States visiting friends and family.
Shortly after the cookout, Wells and his wife returned to the Philippines and continued their missionary work. Several years later, after learning of allegations of child abuse, Wells’ wife urged him to return to the United States to turn himself into authorities. In August 2013, Wells returned to the U.S. and surrendered to the Montgomery County Sheriff’s Department and admitted that he had engaged in abusive sexual contact in 2005 with the child at the Fort Campbell Army Base, as well as two other minor girls in another state. Since the cookout in September 2005, several other individuals have disclosed having been victims of sexual abuse perpetrated by Wells.This matter was investigated by the FBI and the Montgomery County Sheriff’s Department. The United States was represented by Assistant U.S. Attorney S. Carran Daughtrey.
Albuquerque Woman Pleads Guilty to Attempted Theft from Laguna Pueblo’s Route 66 CasinoRead the Press Release
ALBUQUERQUE – Charlene Baca, 43, of Albuquerque, N.M., pleaded guilty this morning to a felony information charging her with theft from an Indian gaming establishment.
Baca was arrested on Oct. 5, 2013, on a criminal complaint charging her with threatening a cashier and attempting to rob the Route 66 Casino located on Laguna Pueblo in Cibola County, N.M. According to the complaint, Baca told the cashier that she had a bomb in the casino and demanded money.
During today’s proceedings, Baca entered a guilty plea to a felony information and admitted that she attempted to steal money belonging to the Route 66 Casino on Oct. 5, 2013, by suggesting to the to the cashier that there was a destructive device in the Casino that would explode in seconds. Baca admitted suggesting to the cashier that she could remotely deploy the bomb if the cashier did not give her money. Baca was arrested by officers of the Pueblo of Laguna Trial Police Department shortly thereafter.
Baca remains on conditions of release at a half-way house pending her sentencing hearing, which has yet to be scheduled. Under the terms of her plea agreement, Baca will be sentenced to time served followed by three years of supervised release.This case was investigated by the Albuquerque office of the FBI with assistance from the Pueblo of Laguna Pueblo Tribal Police Department, the Laguna Agency of the BIA’s Office of Justice Programs, the Bernalillo County Sheriff’s Office, the New Mexico State Police and the Albuquerque Police Department. Assistant U.S. Attorney Niki Tapia-Brito is prosecuting the case.
14 El Paso Area Barrio Azteca Members and Associates Face Federal Racketerring Influenced Corrupt Organization (RICO) Conspiracy ChargeRead the Press Release
RICO Charge Alleges Murder, Extortion, Robbery, Assault, Drug Distribution, and Money Laundering
In El Paso, Barrio Azteca (BA) members and associates, including 41-year-old heroin supplier Rigoberto Alvarado of El Paso, are in custody charged with conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lundquist, El Paso Division.
Today, state and federal authorities arrested eight (8) El Paso residents for their roles in the RICO conspiracy. They are: 34-year-old Raul Lopez (aka Garfield); 54-year-old Manuel Minjares (aka Manny); 43-year-old Eugene Lozano (aka Gino, Polvos); 43-year-old Gabriel Aldana (aka Mookie); 35-year-old Rito Alvarez (aka Ewok); 55-year-old Jose Minjares (aka Paz); 48-year-old Ramon Sanchez (aka Magic); and, 43-year-old Jose Angel Barrios (aka Chamuco). Alvarado and five others involved in the RICO conspiracy were already in state custody prior to today. They are: 40-year-old Fernando Madrid (aka Muneco); 34-year-old Richard Espino (aka Cricket); 45-year-old Hector Bernal (aka Bouncer); 30-year-old Eddie Mendoza (aka Raskal); and, 35-year-old Barbara Rodriguez (aka Barbie). Defendants face up to life in federal prison upon conviction of the RICO conspiracy charge.
According to the RICO indictment, the Barrio Azteca, which began in the 1980’s as a violent prison gang and has expanded into a transnational criminal organization, is primarily based in West Texas; Juarez, Mexico; and throughout state and federal prisons in the U.S. and Mexico. In furtherance of the enterprise, BA members collect a street tax, also known as “cuota,” “quota,” “renta,” or “taxes.” The proceeds from the “cuota” are used to support members of the BA who are arrested, to pay for lawyers, bail bonds, fines, and any other fees associated with legal proceedings. The proceeds from the “cuota” are also used to purchase money orders, which are mailed through the United States Postal Service (USPS) to inmate accounts. The proceeds are also reinvested back into the BA enterprise activities for the purchase of assets, commodities, and other property that are related to the day-to-day function of the BA, including firearms, ammunition, and controlled substances.
The indictment alleges that since August 2010, the defendants conspired to commit racketeering acts in furtherance of criminal enterprise including murder, attempted murder, extortion, drug distribution, and money laundering. The indictment specifically alleges that on March 25, 2012, defendant Jose Angel Barrios murdered Raymundo Puga by injecting what’s referred to by BA’s as a “hotshot,” or lethal amount of heroin, which caused a heroin overdose. Other overt acts alleged in the indictment included mailing heroin to Georgia so that it could be delivered to incarcerated BA members; purchasing money orders with criminal proceeds and sending them to incarcerated BA members; heroin and cocaine sales; and, threats to individuals for not paying cuotas or theft of cuotas.
In addition to the RICO conspiracy charge, the indictment charges: Barrios with violating the VICAR statute, or Violent Crime in Aid of Racketeering, for the murder of Puga; Alvarado and Aldana with conspiracy to import heroin; Alvarado, Aldana, Sanchez, and Rodriguez with conspiracy to distribute heroin; Rodriguez with conspiracy to distribute cocaine; and, Madrid, Lopez, Lozano, Alvarado, Aldana, Espino, Alvarez, Sanchez, and Mendoza with conspiracy to commit money laundering.
“The FBI and together with our law enforcement partners will continue to investigate gang members engaged in organized criminal activity to ensure the continued safety of our community,” stated FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
“Organized crime, drug trafficking and gang activity pose an undeniable threat to the safety of all communities across the state. This extensive investigation is a great example of the successful partnership between DPS and our law enforcement colleagues in El Paso. We proudly work together around the clock to help prevent crime in this area and to take criminals off our streets,” stated Texas Department of Public Safety Commander Carey Matthews.
These charges and arrests resulted from a joint investigation conducted by the Federal Bureau of Investigation (FBI) and Homeland Security Investigations (HSI), together with the Texas Department of Public Safety, El Paso Police Department Gang Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
16 September 2014
Wisconsin Man Charged with Child Exploitation OffensesRead the Press Release
Christopher Heath-Lowther, age 30, of Platteville, Wisconsin, has been charged with one count of transporting a minor across a state line with intent to engage in criminal sexual activity and one count of traveling across a state line for the purpose of engaging in illicit sexual conduct. The charges are contained in an Indictment filed on September 10, 2014, in United States District Court in Cedar Rapids.
The Indictment alleges that, between December 2013 and February 2014, Heath-Lowther traveled across a state line for the purpose of engaging in illicit sexual conduct and transported a minor across a state line with the intent to engage in sexual activity that is illegal in Wisconsin.
If convicted, Heath-Lowther faces a mandatory minimum sentence of ten years’ imprisonment and a possible maximum sentence of life imprisonment, a $500,000 fine, a $200 special assessment, and at least five years and up to life on supervised release following any imprisonment.
Heath-Lowther appeared for a detention hearing today in federal court in Cedar Rapids and was released to home detention with GPS monitoring. Heath-Lowther’s next appearance for trial is set for November 17, 2014.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Federal Bureau of Investigation, the Platteville, Wisconsin, Police Department, and the Maquoketa Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 14-1014.
Vancouver Woman Sentenced to Four Years in Federal Prison for Transporting Minor for SexRead the Press Release
PORTLAND, Ore. — U.S. District Court Judge Robert E. Jones sentenced Laura Lambden, 60, of Vancouver, Washington, to 48 months in federal prison, for transporting a young girl from Vancouver, Washington, to Oregon City, Oregon, for the purpose of prostitution. At the sentencing hearing on Monday, September 15th, Judge Jones further ordered defendant to serve a five-year term of supervised release at the time of her release from federal prison.
Lambden pleaded guilty in June 2014 to violating the Mann Act. Lambden admitted to transporting another person from Vancouver to Oregon City in November 2012, for the purpose of prostitution, but denied knowing that the girl she transported was a minor. The customer (or, “john”) in Oregon City, was 64-year-old Ben Riggs, who has also pleaded guilty to violating the Mann Act. Riggs is scheduled to be sentenced on September 29, 2014.
“The commercial sexual exploitation of our children violates federal sex trafficking laws, whether the exploiter is male or female, pimps don’t always fit the stereotype” stated U.S. Attorney S. Amanda Marshall. “Anyone who traffics a child in the District of Oregon will be prosecuted.”
This case stemmed from a coordinated investigation by members of the Federal Bureau of Investigation’s (FBI) Child Exploitation Task Force, including the FBI and the Vancouver Police Department. The FBI’s Child Exploitation Task Force marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children through sex trafficking, as well as to identify and recover victims. The case was prosecuted by Assistant U.S. Attorney Stacie Beckerman.
U.S. Settlement with Michigan Utility to Reduce Emissions at Its Coal-Fired Power Plants, Fund Projects to Benefit Environment and CommunitiesRead the Press Release
WASHINGTON – In a settlement with the United States, Consumers Energy, a subsidiary of CMS Energy Corporation, has agreed to install pollution control technology, continue operating existing pollution controls and comply with emission rates to reduce harmful air pollution from the company’s five coal-fired power plants located in West Olive, Essexville, Muskegon and Luna Pier, Michigan, the Department of Justice and the U.S. Environmental Protection Agency (EPA) announced today. The settlement will resolve claims that the company violated the Clean Air Act by modifying their facilities in a way that caused the release of excess sulfur dioxide and nitrogen oxide.
EPA expects that the actions required by the settlement will reduce harmful emissions by 46,500 tons per year, which includes approximately 38,400 tons per year of sulfur dioxide (SO2) and 8,100 tons per year of nitrogen oxide (NOx). The company estimates that it will spend approximately $1 billion to implement the required measures. The pollution reductions will be achieved through the installation, upgrade, and operation of state-of-the-art pollution control devices designed to reduce emissions and protect public health. Consumers Energy will also take several coal-fired units offline and may repower additional coal-fired units with natural gas.
The settlement also requires that the company pay a civil penalty of $2.75 million to resolve Clean Air Act violations and spend at least $7.7 million on environmental projects to help mitigate the harmful effects of air pollution on the environment and benefit local communities.
“Today’s settlement will bring cleaner air to residents in Michigan by removing tens of thousands of tons of harmful air pollution from the atmosphere,” said Acting Assistant Attorney General Sam Hirsch of the Justice Department’s Environment and Natural Resources Division. “This agreement will render benefits to communities far into the future with pollution-reduction projects that will improve public health and help restore natural resources downwind of the plants."
“The required pollution controls and funding for mitigation projects will reduce harmful pollution in American communities,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “This case demonstrates that energy can be provided to local communities in a responsible way that significantly reduces sulfur dioxide and nitrogen oxide known to contribute to serious health concerns.”
“Michigan’s greatest assets are our natural resources,” said U.S. Attorney Barbara L. McQuade for the Eastern District of Michigan. “This settlement will protect the health of Michigan residents and ensure clean air for future generations.”
The settlement requires that the company install pollution control technology and implement other measures to reduce sulfur dioxide, and particulate matter emissions from its five coal-fired power plants, comprising 12 operating units. Among other requirements, the company must comply with declining system-wide limits for SO2 and NOx and meet emission rates. In addition, the company must retire or refuel two units to natural gas and retire an additional five units.
SO2 and NOx, two predominant pollutants emitted from power plants, have numerous adverse effects on human health and are significant contributors to acid rain, smog and haze. These pollutants are converted in the air to particulate matter that can cause severe respiratory and cardiovascular impacts, and premature death.
The settlement also requires Consumers Energy to spend at least $7.7 million on projects that will benefit the environment and local communities, including paying $500,000 to the National Park Service for the restoration of land, watersheds, vegetation and forests or combating invasive species in the Cuyahoga Valley National Park and the Sleeping Bear Dunes National Lakeshore Park.
The remaining $7.2 million will be spent on a series of mitigation projects. Potential projects include efforts to reduce vehicle emissions, install renewable energy and energy efficiency projects, replace or retrofit wood burning appliances and protect and restore ecologically significant lands in Michigan. Consumers Energy has five years to complete its selected projects.
This settlement is part of EPA’s national enforcement initiative to control harmful emissions from large sources of pollution, which includes coal-fired power plants, under the Clean Air Act’s Prevention of Significant Deterioration requirements. The total combined SO2 and NOx emission reductions secured from all these settlements will exceed 2 million tons each year once all the required pollution controls have been installed and implemented.
Consumers Energy is Michigan’s second-largest electric and natural gas utility, providing electric service to more than 6 million people in the Lower Peninsula of Michigan.
The settlement was lodged with the U.S. District Court for the Eastern District of Michigan and is subject to a 30-day public comment period and final court approval. It can be viewed at www.justice.gov/enrd/Consent_Decrees.html.
More on the settlement: www2.epa.gov/enforcement/consumers-energy-clean-air-act-settlement
More information about EPA’s enforcement initiative: www.epa.gov/compliance/data/planning/initiatives/2011airpollution.html
Two New Jersey Doctors Admit Taking Bribes in Test-Referrals Scheme with New Jersey Clinical LabRead the Press Release
31 Defendants – including 20 Doctors – Have Pleaded Guilty to Roles in Massive Scheme
NEWARK, N.J. – Two doctors with practices in Secaucus and Hawthorne, New Jersey, today admitted accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Eugene DeSimone, 60, of Eatontown, New Jersey, who practiced in Secaucus, and Douglas Bienstock, 48, of Wayne, New Jersey, who practiced in Hawthorne, each pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to one count of accepting bribes.
According to documents filed in this and related cases and statements made in court:
DeSimone admitted accepting $1,500 in cash per month between August 2010 and March 2013 in return for referring patient blood specimens to BLS. Bienstock admitted that in return for patient blood specimens referrals to BLS he was paid more than $2,500 per month under a sham service contract. BLS also paid Bienstock $100 in cash for each of a certain type of blood test that he ordered. The two doctors acknowledged generating a total of at least $1.6 million in lab business for BLS from their respective practices.
As part of their guilty pleas, DeSimone and Bienstock agreed to forfeit a combined total of $339,000.
On April 9, 2013, federal agents arrested David Nicoll, 40, of Mountain Lakes, New Jersey, Scott Nicoll, 33, of Wayne, New Jersey, a senior BLS employee and David Nicoll’s brother, and Craig Nordman, 35, of Whippany, New Jersey, a BLS employee and the CEO of Advantech Sales LLC – one of several entities used by BLS to make illegal payments. They were charged by federal complaint with the bribery conspiracy, along with the BLS company and Frank Santangelo, 44, of Boonton, New Jersey. In June 2013, David and Scott Nicoll, Nordman and four other associates of BLS pleaded guilty to charges related to their involvement. Santangelo, a doctor, pleaded guilty in August 2013 to charges relating to his role in the scheme.
The bribery counts to which DeSimone and Bienstock pleaded guilty carry a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing for both defendants is scheduled for Dec. 16, 2014.
Including DeSimone and Bienstock, 31 people have now pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. So far, 11 employees or associates of BLS, and 20 doctors have pleaded guilty to their roles in the bribery scheme. The investigation has recovered more than $10.2 million to date through forfeiture.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas O’Donnell; IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Joseph Minish, Senior Litigation Counsel Andrew Leven and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $540 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
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Defense counsel: Eugene DeSimone: Alain Leibman Esq., Lawrenceville, N.J.
Douglas Bienstock: Alan Zegas Esq., Chatham, N.J.
Desimone, Eugene Information
Bienstock, Douglas InformationTwo Bakersfield Drug Trafficking Cases SentencedRead the Press Release
FRESNO, Calif. — Two sentences for drug trafficking were handed down on Monday for cases originating in Bakersfield, United States Attorney Benjamin B. Wagner announced.
Martin Barragan, 39, of Bakersfield, was sentenced by United States District Judge Lawrence J. O'Neill to four years in prison for using an interstate facility to aid racketeering. According to court documents, from June 1, 2012, to November 30, 2012, Barragan conspired with others to cultivate and distribute more than 900 marijuana plants. Barragan used a cellphone to manage his marijuana grow operation and business.
Marco Antonio Granados, 21 of Fontana, was sentenced by United States District Judge Anthony W. Ishii to four years and one month in prison for conspiring to distribute and possess with intent to distribute over 500 grams of methamphetamine. According to court documents, on October 16, 2013, Granados and his cousin met with a confidential informant in a parking lot on Weedpatch Highway in Bakersfield to negotiate the sale of 30 pounds of methamphetamine. When Granados and his cousin showed the informant a large cardboard box filled with methamphetamine in the cargo area of their vehicle, law enforcement personnel arrested them. Officers searched the vehicle and recovered 31 individually wrapped and “food saver” sealed packages of methamphetamine.
Both cases were the product of investigations by the Drug Enforcement Administration and the Kern County Sheriff’s Office. Assistant United States Attorney Brian K. Delaney prosecuted the cases.
Texan Pleads Guilty to Sex Trafficking of a MinorRead the Press Release
SHREVEPORT, La. – A Dallas man pleaded guilty to bringing a minor to Bossier City, La., for prostitution, U.S. Attorney Stephanie A. Finley announced today.
Qualyn D. Mitchell, 31, of Dallas, pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of sex trafficking of a minor. According to evidence presented at the guilty plea, law enforcement agents responded in an undercover capacity to an online advertisement for prostitution on November 21, 2013, and found a 16-year-old minor at a Bossier City hotel engaged in prostitution. Mitchell was found in an adjacent hotel room with another prostitute. Upon further investigation, it was learned that Mitchell had met the minor a few days earlier and had brought her from Dallas to Bossier City. He instructed her to give him the money she made from prostitution. Agents found $1,200 on Mitchell at the time of the arrest.
Mitchell faces 10 years to life in prison, five years to life of supervised release, and up to a $250,000 fine. Sentencing was set for January 23, 2015.The FBI-Violent Crimes Against Children Task Force, Bossier City Police Department, and the Bossier City Marshal’s Office conducted the investigation. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case. This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Those concerned may leave tips with the FBI at tips.fbi.gov and may be submitted anonymously. The Shreveport FBI office number is (318) 861-1890.
Tax Preparer Pleads Guilty to Identity TheftRead the Press Release
NORFOLK, Va. – Sherry R. Kelley, age 41, of Exmore, Va., pleaded guilty today to engaging in aggravated identity theft.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service-Criminal Investigations Washington Field Office; Clark Settles, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington; and Captain Timothy A. Reibel, Virginia State Police Bureau of Criminal Investigations, made the announcement after the plea was accepted by Senior United States District Judge Robert G. Doumar.
A Norfolk federal grand jury indicted Kelley on June 18, 2014 on ten counts of aggravated identity theft and ten counts of using others' social security numbers. As a result of her guilty plea to count one of the indictment, Kelley faces a mandatory penalty of two years of incarceration when she is sentenced on January 20, 2015.
As reported in a statement of facts filed with the plea agreement, Kelley previously owned and operated four H & R Block tax franchise stores located in Belle Haven, Onley, Melfa, and Cheriton on Virginia's Eastern Shore. While overseeing the operation of these stores, Kelley gained access to and misused the identity information of approximately 20 tax clients. Unbeknownst to her clients or H & R Block, Kelley electronically applied for and obtained lines of credit from H & R Block Bank in her clients' names and forged her clients' signatures to account paperwork. Then, using debit cards issued with the approved credit lines, Kelley made thousands of dollars in purchases and ATM cash withdrawals against the fraudulently obtained accounts, before later repaying the sums taken.
This case was jointly investigated by agents with the Internal Revenue Service-Criminal Investigation, Homeland Security Investigations, and the Virginia State Police. Assistant United States Attorney Robert J. Krask is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
- Tanzanian National Guilty in Tax Fraud Scheme Involving More Than 600 Victims
Swanton Man Sentenced to Prison for Child Pornography OffenseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Timothy Keevan, 49, of Swanton, Vermont, was sentenced on September 15, 2014, in United States District Court in Burlington, Vermont, to serve 48-months imprisonment and a 15-year period of supervised release following his conviction on one count of accessing child pornography with the intent to view it, in violation of 18 U.S.C. § 2252(a)(4)(B). Chief Judge Christina Reiss also ordered Keevan to pay a $100 special assessment.
According to court records and proceedings, Keevan, an operations support technician with U.S. Citizen and Immigration Service who works in the shipping and receiving warehouse in St. Albans, Vermont, used a work-issued computer to access websites that displayed images of child pornography. Keevan’s activities were discovered because his computer, like all government issued computers, was continually monitored for non-work related or other inappropriate activity. The computer was confiscated and the images of child pornography were discovered on it.
In 2011, Keevan was charged with sexual assault of a child after a child who had been a player on the Little League team Keevan was coaching in 1997 disclosed that Keevan had fondled him during a sleep-over at Keevan’s house. Keevan ultimately pleaded guilty to a misdemeanor and was placed on probation. He was on probation when he used his work computer to access with intent to view child pornography.
United States Attorney Coffin commended the efforts of the Department of Homeland Security Office of Inspector General, under the direction of Special Agent in Charge Gregory K. Null for the Northeast Region, the Vermont State Police, the United States Secret Service, and the Office of Immigration and Customs Enforcement, in the prosecution of Keevan.
The prosecution of Keevan was handled by Assistant U.S. Attorney Barbara A. Masterson. Keevan was represented by Federal Defender Michael L. Desautels.
U.S. Attorney Coffin noted that this prosecution is part of the U.S. Department of Justice=s Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
South Carolina Man Pleads Guilty to Second-Degree Murder in 22-Year-Old Murder Case-Admits Taking Part in Memorial Day Killing of Man at Hains Point-Read the Press Release
WASHINGTON – Lamont Terry, 39, formerly of Columbia, S.C., pled guilty today to a charge of second-degree murder in the slaying of a man during an attempted robbery on Memorial Day of 1992 in East Potomac Park, U.S. Attorney Ronald C. Machen Jr. announced.
Terry pled guilty on the same day that his trial was to begin in the Superior Court of the District of Columbia. The plea agreement, which is contingent upon the Court’s approval, calls for a sentence of 20 to 60 years in prison, with all but 20 years to be suspended. The Honorable Robert E. Morin scheduled sentencing for Nov. 14, 2014.
According to the government’s evidence, on May 25, 1992, Terry and several other individuals drove from Arlington, Va. to the District of Columbia, looking for someone to rob. In preparation for the robbery, Terry retrieved a sawed-off shotgun, which he brought with him. At approximately 11 p.m., Terry and his friends entered the Hains Point area of East Potomac Park in Southwest Washington. At that time, they came upon the victim, Chet Matthews, 27, who was seated in a parked vehicle on Ohio Drive.
Terry forcibly removed Mr. Matthews from the car, made him get down on his knees, and began demanding money and jewelry from him. Mr. Matthews pleaded that he had nothing and struggled to remove his rings. While his accomplices searched Mr. Matthews’s car for anything of value, Terry suddenly pulled the trigger on the sawed-off shotgun. He shot Mr. Matthews one time through his chest at close range. All of the men then fled the park. Mr. Matthews, an Army veteran who was employed as a postal carrier, was pronounced dead a short time later.
Today’s plea is the latest in a series of successful prosecutions by the U.S. Attorney’s Office of older homicide cases. Working with the Metropolitan Police Department (MPD) and other law enforcement partners, the office has a specially designated Cold Case Unit that prosecutes these older cases. In this case, new evidence was obtained that led to the filing of the murder charge against the defendant in January 2012.
Terry was arrested in Columbia, S.C., in January 2012 by a fugitive apprehension task force of the U.S. Marshals Service. He has remained in custody ever since.
In announcing the plea, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department. He also expressed appreciation for the assistance provided by the U.S. Marshals Service in the District of South Carolina, as well as the Capital Area Regional Fugitive Task Force in Washington, D.C. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Fern Rhedrick, Debra Joyner, and Alesha Matthews Yette; Victim/Witness Security Specialists David Foster and Katina Adams-Washington; Victim/Witness Advocate Tamara Ince; and Litigation Technology Specialists Joshua Ellen, Kimberly Smith, Thomas Royal, Anisha Bhatia, and Aneela Bhatia.
Finally, he commended the work of Assistant U.S. Attorney S. Vinét Bryant, who investigated and prosecuted the case.
14-208Somerset County, N.J., Man Admits Production and Transportation of Images of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A Watchung, New Jersey, man today admitted producing and transporting sexually explicit videos of children, U.S. Attorney Paul J. Fishman announced.
Patrick T. Deck, 54, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with two counts of transportation of child pornography.
According to documents filed in this case and statements made in court:
On Aug. 12, 2012, Deck was arrested at the Land of Make Believe amusement park in Hope, New Jersey, by the N.J. State Police for allegedly filming children, without their or their parents’ knowledge, in the men’s restroom. The following day, law enforcement officers executed a search warrant at Deck’s home in Watchung and discovered multiple videos and images containing child sexual abuse on Deck’s computers and other electronic devices.
Deck also admitted that between 1997 and 2010, he transported two minors, beginning when they were approximately 11 years old, to locations across the country, including New Jersey, New York, Pennsylvania, Colorado and Montana for the purpose of filming the minors in sexually explicit conduct. Deck produced the videos and images of child pornography and then transported those images back to his home in Watchung.
In 1988, Deck was convicted in N.J. Superior Court, Burlington County, of two counts of endangering the welfare of a child. Those convictions arose out of prior incidents where Deck photographed or filmed minors engaged in prohibited sexual acts. As a result of Deck’s prior convictions, each count of transportation of child pornography to which Deck pleaded guilty carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 40 years in prison and a $250,000 fine. Sentencing is currently scheduled for Jan. 12, 2015.
U.S. Attorney Fishman credited special agents of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees in Newark, the N.J. State Police, under the direction of Col. Rick Fuentes, and the Warren County Prosecutor’s Office, under the direction of Prosecutor Richard T. Burke, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Francisco J. Navarro of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel: James Wronko Esq., Somerville, New Jersey
Deck, Patrick Information
Senior Information Systems Engineer at National Law Firm Charged in Manhattan Federal Court with Insider TradingRead the Press Release
Dmitry Braverman Charged with at Least Eight Different Trades Based on Nonpublic Information About Mergers and Acquisitions Activity of the Law Firm’s Clients
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that DMITRY BRAVERMAN was arrested this morning on securities fraud charges stemming from his involvement in an insider trading scheme. Specifically, BRAVERMAN traded on material nonpublic information about potential merger and acquisition activity of at least eight clients of his employer – a national, full-service law firm – resulting in profits of approximately $300,000. BRAVERMAN is expected to be presented today in San Francisco federal court before a United States Magistrate Judge.
U.S. Attorney Preet Bharara said: “As alleged, Dmitry Braverman, undeterred by the many felony convictions of others for insider trading, abused his access to nonpublic information about mergers and acquisitions for personal gain. Braverman’s charged actions are yet another example of brazen disregard for laws that are intended to keep the playing field level.”
FBI Assistant Director-in-Charge George Venizelos said: “Our message of deterrence has apparently still not been heard. Braverman used his computer prowess to snoop on deals and get inside information. He then made numerous trades with his illegal edge. Braverman finds himself under arrest and faces stiff jail time for his alleged crimes.”
In a separate action, the U.S. Securities and Exchange Commission (“SEC”) announced civil charges against BRAVERMAN.
According to the one-count Complaint unsealed today in Manhattan federal court:
From at least in or about September 2010 through December 2013, BRAVERMAN was engaged in an insider trading scheme. BRAVERMAN, who is a senior systems engineer at a full-service law firm (the “Law Firm”), was primarily responsible for maintaining and designing software in connection with the Law Firm’s finance function and had access to financial and billing databases. BRAVERMAN’s level of computer and database systems access of the Law Firm gave him access to information about, among other things, the Law Firm’s clients in potential merger and acquisition activity, as well information about the identities of the other parties to the potential deal.
Between about 2010 and 2011, BRAVERMAN engaged in at least four trades that were based on inside information, and tipped another person (“Individual-1”), who engaged in two of the same trades. In April 2011, however, BRAVERMAN and Individual-1 abruptly closed out the last of these trades on the same day that another employee of the Law Firm was arrested on separate insider trading charges. In November 2012, BRAVERMAN opened a new brokerage account and (again) began trading on the basis of inside information he obtained from the Law Firm. Specifically, between November 2012 and the present, BRAVERMAN engaged in at least four additional trades based on inside information. In total, BRAVERMAN made more than approximately $300,000 in profits from the trades between 2010 and the present.
BRAVERMAN, 41, was arrested this morning at his home in San Mateo, California. He is charged with one count of securities fraud. The securities fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $5 million, or twice the gross gain or loss from the offense. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the work of the Federal Bureau of Investigation, and thanked the SEC for its assistance. He added that the investigation is continuing.
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.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Matthew L. Schwartz and Benjamin Naftalis are in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is
presumed innocent unless and until proven guilty.
U.S. v. Dmitry Braverman Complaint
Dmitry Braverman transactions chartSciencefriday, Inc. and Ira Flatow to Pay $145,531 to Resolve Allegations of Misuse of Nsf GrantRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Allison C. Lerner, Inspector General of the National Science Foundation, today announced that SCIENCEFRIDAY, INC. (“SCIENCE FRIDAY”) and IRA FLATOW, both individually and in his capacity as president of SCIENCE FRIDAY, have entered into a civil settlement agreement with the government in which SCIENCE FRIDAY and FLATOW will pay $145,531 to resolve allegations that they violated the False Claims Act and the common law in the management of a $998,554 federally-funded grant awarded to SCIENCE FRIDAY by the National Science Foundation (“NSF”) for the period between August 2009 and July 2011. SCIENCE FRIDAY, a for-profit corporation based in Stamford, sought the funds from NSF for the purpose of extending the impact of its weekly National Public Radio program to a new and younger audience through the use of cyber-space platforms and interactive tools such as Facebook and Twitter.
In addition to payment of the settlement sum, SCIENCE FRIDAY and FLATOW voluntarily agreed to exclusion from participation in federal programs, grants, and contracts, or from providing services under grants and contracts, with the U.S. government, any department or agency of the U.S. government, or any projects, grants or contracts directly funded by the U.S. for a period of one year, commencing on the effective date of the settlement agreement. SCIENCE FRIDAY and FLATOW also agreed to adhere to a five-year compliance plan, which shall be implemented upon the parties being identified in a proposal for an NSF grant as a possible recipient of NSF funds, in any capacity.
The investigation focused on allegations involving several types of mischarges to the federal grant. The grant required that SCIENCE FRIDAY comply with several administrative requirements, including in part: (1) the submission and certification of quarterly Federal Financial Reports (“FFRs”) reporting the amounts of federal grant money expended in each financial quarter; (2) the submission and certification of advances or reimbursements of grant funds each time federal money was drawn down by the company; (3) the submission of a budget(s) detailing the expected use of the grant funds; (4) the establishment of an accounting system capable of recording grant expenditures according to budget categories; (5) the preparation of adequate time and effort reports accounting for the expenditure of grant funds; and (6) compliance with federal regulations and policies applicable to all awards and grants, and with regulations and policies specific to the NSF grant.
As the result of an investigation conducted by the NSF Office of Inspector General (“OIG”), the government identified a number of alleged deficiencies in SCIENCE FRIDAY’s use of the grant funds: (1) SCIENCE FRIDAY submitted nine false FFRs to the U.S. certifying that all disbursements “have been made for the purposes and conditions…of the [Award]”; (2) SCIENCE FRIDAY submitted 19 false cash advance requests to the U.S. certifying that the requests for advance were correct; (3) SCIENCE FRIDAY maintained a time and effort system incapable of tracking the time spent working on the grant award and the amount of salary charged to the grant; and (4) SCIENCE FRIDAY inappropriately used grant money to cover unallowable and unsupported costs.
The False Claims Act provides for up to treble damages and penalties of $5,500 to $11,000 per false claim submitted to the Government.
“This settlement sends a clear message that recipients of federally-funded grants must strictly adhere to the regulations applicable to those grants,” stated U.S. Attorney Daly. “If recipients fail to do so, they risk significant consequences.”
“My office will aggressively pursue those who misuse federal grant funds intended to advance science education,” added NSF Inspector General Lerner. “I commend the U.S. Attorney’s Office for its efforts in reaching this settlement agreement.”
U.S. Attorney Daly also noted that SCIENCE FRIDAY and FLATOW cooperated with the government’s investigation.
As a result of the settlement, there will be no lawsuit filed against SCIENCE FRIDAY and FLATOW regarding the grant covered by the settlement agreement. In entering into the settlement, SCIENCE FRIDAY and FLATOW did not admit liability or wrongdoing, and the agreement indicates that the parties settled this matter to avoid the delay, uncertainty, inconvenience, and expense of litigation.
The matter was handled within the U.S. Attorney’s Office by Assistant U.S. Attorney William A. Collier and Auditor Susan N. Spiegel.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
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(203) 821-3722 [email protected]Rochester Man Pleads Guilty to Charges Involving Stolen PropertyRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Brandon Meade, 27, of Rochester, NY, pleaded guilty to conspiring to transport and transfer stolen property with an aggregate value of $5000 in interstate commerce before District Court Judge Richard J. Arcara. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorneys Scott S. Allen, Jr. and Anthony M. Bruce, who are handling the case, stated that the defendant ran East Side Gold and Car Audio, a pawn shop located at the corner of North Goodman and Clifford Avenues in Rochester. In that role, Meade assisted several other individuals, including do-defendant Rico J. Vendetti, in obtaining over $350,000 in merchandise. The merchandise was obtained through organized rings of shoplifters who stole from big box stores such as Walmart, Sears, Home Depot, JoAnn Fabrics, Tops and Wegmans. The merchandise was then allegedly sold by Vendetti on eBay for about half of its retail value.
Vendetti, along with Arlene Combs, Albert Parsons, and Donald Griffin, all of Rochester, N.Y., are charged with felony murder in the death of 78-year old Homer Marciniak during the course of a home invasion robbery at Marciniak’s home in Medina, N.Y. in July, 2010. In addition, Vendetti and Combs are charged with racketeering, which includes the murder, witness tampering and transporting stolen goods in interstate commerce. If convicted of the felony murder charge, Vendetti, Combs, Parsons and Griffin face a mandatory sentence of life in prison without parole.
According to the indictment, Vendetti, Combs, Parsons and Griffin planned and carried out a July 5, 2010 home invasion robbery at Marciniak’s Medina home. During the robbery, Marciniak’s valuable collection of collectible comic books was stolen and Marciniak was beaten. Several hours after being treated for bruises and lacerations suffered during the robbery and released from the hospital, Marciniak was readmitted to the hospital where he died of a heart attack.
Vendetti is scheduled to be tired in front of Judge Aracara in December. Charges are pending against defendants Combs, Parsons, and Griffin. 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 Indictment is the result of an investigation on the part of Special Agents from the Federal Bureau of Investigation, the New York State Police, under the direction of Major Scott Crosier, the Orleans County Sheriff’s Department, under the direction of Sheriff Scott Hess, the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn, the Medina Police Department, under the direction of Chief Jose Avila and Officers from the Rochester Police Department under the direction of Chief James Sheppard.
Sentencing is scheduled January 12, 2015 at 12:30 p.m. before Judge Arcara.Rochester Man Indicted on Charges of Attempting to Provide Material Support to ISIS, Attempting to Kill U.S. Soldiers and Possession of Firearms and SilencersRead the Press Release
ROCHESTER, N.Y.— Attorney General Eric Holder, Assistant Attorney General for National Security John Carlin and U.S. Attorney William J. Hochul Jr. for the Western District of New York announced today that a federal grand jury in Rochester has returned a seven-count indictment charging Mufid A. Elfgeeh, 30, of Rochester, with three counts of attempting to provide material support and resources to the Islamic State of Iraq and the Levant (ISIL), aka the Islamic State of Iraq and Syria (ISIS), a designated foreign terrorist organization. In addition, Elfgeeh is also charged with one count of attempted murder of current and former members of the United States military, one count of possessing firearms equipped with silencers in furtherance of a crime of violence, and two counts of receipt and possession of unregistered firearm silencers.
“We will remain aggressive in identifying and disrupting those who seek to provide support to ISIL and other terrorist groups that are bent on inflicting harm upon Americans,” said Attorney General Holder. “As this case shows, our agents and prosecutors are using all the investigative tools at our disposal to break up these plots before individuals can put their plans into action. We are focused on breaking up these activities on the front end, before supporters of ISIL can make good on plans to travel to the region or recruit sympathizers to this cause.”
“Disrupting and holding accountable those who seek to provide material support to foreign terrorist organizations is and shall remain a critical national security priority,” said Assistant Attorney General Carlin. “I want to thank the agents, analysts and prosecutors who are responsible for the arrest and charges in this case.”
“With today's indictment of Mufid Elfgeehr, the government demonstrates that it will use all available tools to disrupt and defeat ISIS,” said U.S. Attorney Hochul. “The case also demonstrates that by working with the community, law enforcement is able to identify those who would harm our country or our returning soldiers.”
The material support charges each carry a maximum sentence of 15 years in prison, the attempted murder charge carries a maximum sentence of 20 years in prison, the firearms possession charge carries a mandatory minimum sentence of 30 years and a maximum of life in prison, and the firearm silencer charges each carry a maximum sentence of 10 years in prison.
According to court records, Elfgeeh attempted to provide material support to ISIS in the form of personnel, namely three individuals, two of whom were cooperating with the FBI. Elfgeeh attempted to assist all three individuals in traveling to Syria to join and fight on behalf of ISIS. Elfgeeh also plotted to shoot and kill members of the United States military who had returned from Iraq. As part of the plan to kill soldiers, Elfgeeh purchased two handguns equipped with firearm silencers and ammunition from a confidential source. The handguns were made inoperable by the FBI before the confidential source gave them to Elfgeeh.
According to court documents, in 2013 and into early 2014, Elfgeeh encouraged the two confidential sources (CS-1 and CS-2) to travel overseas to engage in violent jihad. After CS-1 and CS-2 agreed to travel to Syria to join ISIS, Elfgeeh took several steps to prepare them for the trip. Elfgeeh also sent $600 to an individual in Yemen for the purpose of assisting that individual in traveling from Yemen to Syria for the purpose of joining and fighting on behalf of ISIS.
Court documents also indicate that Elfgeeh first discussed the idea of shooting United States military members in December 2013 when he told CS-2 that he was thinking about getting a gun and ammunition, putting on a bulletproof vest, and “just go[ing] around and start shooting.” In February 2014, Elfgeeh told CS-2 that he needed a handgun and silencer. Elfgeeh later gave CS-2 $1,050 in cash to purchase two handguns equipped with silencers and ammunition. On May 31, 2014, CS-2 delivered the two handguns equipped with silencers and ammunition to Elfgeeh. After Elfgeeh took possession of the items, he was arrested by members of the Rochester Joint Terrorism Task Force. Elfgeeh is currently being held in custody.
The indictment is the result of an investigation on the part of the Rochester Joint Terrorism Task Force of the Federal Bureau of Investigation.
The defendant is being prosecuted by Assistant United States Attorneys Brett A. Harvey and Frank H. Sherman, with the assistance of Trial Attorney Steven P. Ward of the National Security Division’s Counterterrorism Section.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent unless and until proven guilty.
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Rochester Man Indicted on Charges of Attempting to Provide Material Support by Recruiting Multiple Individuals to Join ISIS, Attempting to Kill U.S. Soldiers, and Possession of Firearms and SilencersRead the Press Release
ROCHESTER, N.Y.—Attorney General Eric Holder, Assistant Attorney General for National Security John Carlin and U.S. Attorney William J. Hochul Jr. for the Western District of New York announced today that a federal grand jury in Rochester has returned a seven-count indictment charging Mufid A. Elfgeeh, 30, of Rochester, with three counts of attempting to provide material support and resources to the Islamic State of Iraq and the Levant (ISIL), aka the Islamic State of Iraq and Syria (ISIS), a designated foreign terrorist organization. In addition, Elfgeeh is also charged with one count of attempted murder of current and former members of the United States military, one count of possessing firearms equipped with silencers in furtherance of a crime of violence, and two counts of receipt and possession of unregistered firearm silencers.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent unless and until proven guilty.
“We will remain aggressive in identifying and disrupting those who seek to provide support to ISIL and other terrorist groups that are bent on inflicting harm upon Americans,” said Attorney General Holder. “As this case shows, our agents and prosecutors are using all the investigative tools at our disposal to break up these plots before individuals can put their plans into action. We are focused on breaking up these activities on the front end, before supporters of ISIL can make good on plans to travel to the region or recruit sympathizers to this cause.”
“Disrupting and holding accountable those who seek to provide material support to foreign terrorist organizations is and shall remain a critical national security priority,” said Assistant Attorney General Carlin. “I want to thank the agents, analysts and prosecutors who are responsible for the arrest and charges in this case.”
“With today's indictment of Mufid Elfgeehr, the government demonstrates that it will use all available tools to disrupt and defeat ISIL,” said U.S. Attorney Hochul. “The case also demonstrates that by working with the community, law enforcement is able to identify those who would harm our country or our returning soldiers.”
The material support charges each carry a maximum sentence of 15 years in prison, the attempted murder charge carries a maximum sentence of 20 years in prison, the firearms possession charge carries a mandatory minimum sentence of 30 years and a maximum of life in prison, and the firearm silencer charges each carry a maximum sentence of 10 years in prison.
According to court records, Elfgeeh attempted to provide material support to ISIS in the form of personnel, namely three individuals, two of whom were cooperating with the FBI. Elfgeeh attempted to assist all three individuals in traveling to Syria to join and fight on behalf of ISIS. Elfgeeh also plotted to shoot and kill members of the United States military who had returned from Iraq. As part of the plan to kill soldiers, Elfgeeh purchased two handguns equipped with firearm silencers and ammunition from a confidential source. The handguns were made inoperable by the FBI before the confidential source gave them to Elfgeeh.
According to court documents, in 2013 and into early 2014, Elfgeeh encouraged the two confidential sources (CS-1 and CS-2) to travel overseas to engage in violent jihad. After CS-1 and CS-2 agreed to travel to Syria to join ISIS, Elfgeeh took several steps to prepare them for the trip. Elfgeeh also sent $600 to an individual in Yemen for the purpose of assisting that individual in traveling from Yemen to Syria for the purpose of joining and fighting on behalf of ISIS.
Court documents also indicate that Elfgeeh first discussed the idea of shooting United States military members in December 2013 when he told CS-2 that he was thinking about getting a gun and ammunition, putting on a bulletproof vest, and “just go[ing] around and start shooting.” In February 2014, Elfgeeh told CS-2 that he needed a handgun and silencer. Elfgeeh later gave CS-2 $1,050 in cash to purchase two handguns equipped with silencers and ammunition. On May 31, 2014, CS-2 delivered the two handguns equipped with silencers and ammunition to Elfgeeh. After Elfgeeh took possession of the items, he was arrested by members of the Rochester Joint Terrorism Task Force. Elfgeeh is currently being held in custody.
The indictment is the result of an investigation on the part of the Rochester Joint Terrorism Task Force of the Federal Bureau of Investigation.
The defendant is being prosecuted by Assistant United States Attorneys Brett A. Harvey and Frank H. Sherman, with the assistance of Trial Attorney Steven P. Ward of the National Security Division’s Counterterrorism Section.Ringleader Sentenced for Million Dollar Bank Fraud Conducted in California and Nevada CasinosRead the Press Release
SAN DIEGO – United States Attorney Laura E. Duffy announced today that Ara Keshishyan was sentenced last Friday to 57 months’ imprisonment for leading and organizing a 14-defendant conspiracy to steal more than $1,000,000 from Citibank using cash advance kiosks in a dozen casinos from Southern California to Las Vegas. Judge Sammartino also ordered Keshishyan to pay back the $1,045,585 stolen from Citibank.
Keshishyan presided over a conspiracy to exploit a gap in Citibank’s electronic transaction security protocols in order to overdraw more than 20 Citibank accounts by tens of thousands of dollars each. The scheme worked as follows: Keshishyan recruited conspirators to open Citibank checking accounts that Keshishyan would fund with “seed” money that would form the basis for future fraudulent withdrawals. Keshishyan and his various conspirators then traveled to casinos in Southern California and Nevada, including the Morongo, Pechanga, San Manuel, Agua Caliente, Chukchansi, and Spa Resort casinos in California; the Tropicana, Wynn, Bicycle, and Whiskey Pete’s casinos in Las Vegas, Nevada; and Harrah’s in Laughlin, Nevada. Once inside the casino, Keshishyan instructed the conspirator how to conduct identical, fraudulent withdrawals at cash advance kiosks within a short time window in order to circumvent Citibank security protocols. Keshishyan’s technique exploited a glitch that allowed his conspirators to withdraw several times the amount of seed money deposited into the accounts. In one case, Keshishyan and one of the co-conspirators were able to withdraw 10 times the amount of money deposited into one of the accounts opened in furtherance of the fraud. The conspirators were careful to keep their deposits and withdrawals under $10,000 (typically between $9,000 and $10,000) in order to avoid federal transaction reporting requirements. As the organizer of the conspiracy, Keshishyan personally took a cut of every fraudulent withdrawal that he directed.
United States Attorney Duffy said, “This is an example of a class of cyber-fraud that burdens our financial system and results in a higher cost of doing business for American consumers. Along with our agency partners, my office is committed to detecting and prosecuting these schemes in whatever form they take.”
FBI Special Agent in Charge Daphne Hearn commented, “While advancements in technology have created a world of accessibility to users and a convenience for consumers, they have also left room for cyber criminals to exploit even the smallest of loopholes. The FBI will continue to use our investigative expertise in cyber and financial crimes to pursue those who illegally abuse our financial system for their own personal gain.”
DEFENDANT Case Number: Ara Keshishyan Age: 32 Fillmore, CA CHARGESConspiracy to Commit Bank Fraud – Title 18, U.S.C., Section 371
INVESTIGATING AGENCYFederal Bureau of Investigation
*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Reading Woman Charged in Straw Purchasing CaseRead the Press Release
PHILADELPHIA - Angelica Leonore Delmoral, 26, of Reading, PA, was charged by indictment, unsealed today, with six counts of making false statements to federal firearms licensees. The indictment charges that the defendant straw purchased ten pistols for another person between July 19, 2011 and July 23, 2011.
According to the indictment, E.K.B., a convicted felon, offered to pay the defendant to buy handguns for him. Delmoral bought ten pistols and ammunition from five gun dealers. Delmoral turned over each pistol and any ammunition to E.K.B. and Person #1, who took the handguns to New York City.
If convicted of all charges, the defendant faces a maximum of 30 years in prison, three years of supervised release, a $1.5 million fine, and a $600 special assessment.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and is being prosecuted by Assistant United States Attorney Eric B. Henson.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Owner of Foreign Exchange Currency Trading Company Executive Sentenced to Nine Years in PrisonRead the Press Release
BOSTON – A Hopkinton man, and former owner of Boston Trading and Research, was sentenced this afternoon to nine years in prison after pleading guilty to charges that he and his business partner defrauded more than 700 investors out of more than $30 million.
Craig K. Karlis, 54, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to nine years in prison, three years of supervised release, and ordered to pay $4,378,306 in restitution to the fraud victims as well as $457,438 to the Internal Revenue Service. In March 2014, Karlis pleaded guilty to nine counts of wire fraud and two counts of tax-related crimes. Karlis’ business partner, Ahmet Devrim Akyil, was also charged, but remains a fugitive and is believed to be in his native Turkey.
“By any measure, Boston is one of this nation’s leading financial centers, with more than a trillion of dollars under management,” said United States Attorney Carmen M. Ortiz. “This prosecution – aimed at protecting this robust market – is reflective of the rapidly developing partnership among the United States Attorney’s Office, the U.S. Securities and Exchange Commission, and the Federal Bureau of Investigation. While the criminal enforcement of corporate and securities laws are not often headline news, they are at the heart of the United States Attorney’s Office growing white collar enforcement effort.”In 2007, Karlis and Akyil founded Boston Trading and Research (BTR) and recruited customers to open accounts so that Akyil could trade the customers' money in the foreign currency exchange (FOREX) market. By July 2008, BTR had approximately 1,200 customers and more than $35 million under management.
Among other things, Karlis and Akyil falsely told customers that BTR was compensated based on a percentage of trading profits and that, through BTR's computerized customer trading platform and daily e-mailed account statements, customers saw every trade that was placed using customer money. Karlis and Akyil also falsely told customers that BTR had various different strategies to reduce risk, including most notably that, once BTR had lost 30% of the value of an individual customer's account, the computerized platform automatically shut down all trading on that account and trading would not resume unless and until the customer gave BTR permission to continue trading.
From the outset of the business, Karlis and Akyil ignored these, and a number of other, representations. Karlis and Akyil did not limit what BTR took to only a percentage of the customers' profit. Rather, Karlis and Akyil used millions of dollars from BTR customer accounts to pay BTR's business expenses and to pay for their own personal expenses, such as houses, cars, and jewelry. Karlis and Akyil concealed this misappropriation from BTR's customers on the computerized customer platform and account statements, which did not show all of the trades that BTR had placed using customer money. Finally, contrary to what Karlis and Akyil had told customers, the computerized platform did not have an automatic shut-down mechanism once BTR lost 30% of the value of customer accounts. In fact, over the course of BTR's existence, Akyil ignored the 30% Astop-loss@limit several times and then, in August and September 2008, continued trading long after losing more than 30%, eventually losing approximately 90% of the customers' money, or more than $30 million.
Karlis also filed a false tax document with the IRS in which he concealed the fact that he owned a second home that he had purchased with more than $600,000 in BTR customer money and then filed a false 2008 tax return in which he failed to report approximately $1.3 million in income he had received from BTR.
United States Attorney Carmen M. Ortiz; Vince B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service's Criminal Investigation in Boston, made the announcement today. The SEC and the Commodity Futures Trading Commission also cooperated with the investigation. The case is being prosecuted by Assistant U.S. Attorneys Sarah E. Walters, Chief of Ortiz's Economic Crimes Unit and Adam J. Bookbinder, Chief of her Cybercrime Unit.
One Man Involved in Southeast Connecticut Narcotics Ring Pleads Guilty, Another SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANGEL COLLAZO GARCIA, also known as “Yuyo,” 47, of New London, pleaded guilty today in Hartford federal court to conspiring to distribute cocaine in southeastern Connecticut. In addition, JOSE REYNOSO MONEGRO, also known as “Culito,” 45, of New York, who was charged as a result of the same investigation, was sentenced yesterday by U.S. District Judge Janet Bond Arterton in New Haven to 35 months of imprisonment, followed by three years of supervised release, for trafficking heroin.
According to court documents and statements made in court, in early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut. The investigation revealed that certain members of the conspiracy coordinated the shipment of heroin, and sometimes cocaine, via human couriers from the Dominican Republic to the United States. Other members of the conspiracy obtained kilogram-quantities of cocaine in Puerto Rico and then mailed the drug to locations in and around New London where it was sold to distributors and customers. Narcotics were also obtained from sources in New York City and Rhode Island.
More than 100 individuals were charged in April 2013 with federal and state offenses as a result of this investigation.
COLLAZO GARCIA pleaded guilty to one count of conspiracy to possess with the intent to distribute cocaine. According to court documents and statements made in court, he sold cocaine, marijuana and other drugs from the “Green Garages,” a series of garage bays on Walker and Bristol Streets in New London.
COLAZZO GARCIA is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on December 3, 2014, at which time he faces a maximum term of imprisonment of 20 years.
The investigation revealed that Luis Ariel Capellan Maldonado received heroin from a Dominican-based source of supply through New York and then distributed the drug to his own customer base in and around New London. REYNOSO MONEGRO helped facilitate these deals by holding cash from Capellan Maldonado for his New York source of supply.
On January 6, 2014, REYNOSO MONEGRO pleaded guilty to one count of conspiracy to possess with the intent to distribute heroin.
Capellan Maldonado has also pleaded guilty and awaits sentencing.
This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal cases are being prosecuted by Assistant U.S. Attorneys Alina P. Reynolds, Sarah P. Karwan and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.PUBLIC AFFAIRS CONTACT:
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(203) 821-3722 [email protected]New York Resident Pleads Guilty to Aggravated Identity Theft, Credit Card FraudRead the Press Release
PROVIDENCE, R.I. – Yvener Jean-Baptiste, 27, of Brooklyn, N.Y., pleaded guilty in U.S. District Court in Providence on Monday to using counterfeit credit cards with account numbers belonging to actual credit card owners to purchase $172,661.09 in Target and Wal-Mart store gift cards at Rhode Island stores in November 2013, announced United States Attorney Peter F. Neronha; Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service; and Lincoln Police Chief Brian W. Sullivan.
Appearing before U.S. District Court Chief Judge William E. Smith, Jean-Baptiste admitted to the court that on five occasions between November 1 and November 30, 2013, he and others purchased gift cards totaling $172,661.09 at Target stores in Lincoln, at the Warwick Mall and on Bald Hill Road, and at a Wal-Mart store in Warwick, using counterfeit credit cards with actual account numbers belonging to other individuals. The owners of those account numbers were unaware that their personal identifying information was used to produce the counterfeit credit cards.
According to information presented to the court, Jean-Baptiste provided the purchased gift cards to an individual in New York. Jean-Baptiste typically received $200 for every $800 fraudulent transaction he conducted. The investigation revealed that the gift cards were redeemed at stores in New York the same day or the day after being purchased in Rhode Island.
According to information presented to the court, Jean-Baptiste returned to the Target store in Lincoln on November 30, 2013, one day after he and another person purchased $75,894.01 worth of Target gift cards using six counterfeit credit cards. He returned to the store in a vehicle previously identified by a Target employee as being driven by the individuals who committed credit card fraud the previous day. The vehicle was stopped by Lincoln Police. Officers arrested Jean-Baptiste after they discovered ten counterfeit credit cards, a counterfeit driver’s license and multiple Target gift cards inside the vehicle.
Yvener Jean-Baptiste pleaded guilty to one count each of credit card fraud and aggravated identity theft. He is scheduled to be sentenced on December 5, 2014. At sentencing, he faces statutory penalties of a mandatory minimum of two years and up to 12 years in federal prison, and a fine of up to $500,000 or twice the pecuniary gain or loss resulting from the crimes.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
The matter was investigated by the U.S. Secret Service and the Lincoln Police Department###
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 Mexico Jury Finds California Man Guilty of Violating the Sex Offender Registration and Notification ActRead the Press Release
ALBUQUERQUE – A federal jury sitting in Las Cruces, N.M., returned a verdict earlier today finding Eric Leo Alexander, 36, of Anaheim, Calif., guilty of violating the Sex Offender Registration and Notification Act (SORNA) after a two-day trial. The guilty verdict was announced by U.S. Attorney Damon P. Martinez and U.S. Marshal Conrad E. Candelaria.
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
“The Marshals Service for the District of New Mexico is dedicated to the safety of all communities within New Mexico, which is evident in this recent arrest of a dangerous and violent fugitive,” said U.S. Marshal Conrad E. Candelaria. “Regardless of the time, day or circumstance, when investigative leads are referred to Deputy United States Marshals, the information will be reviewed, validated, with the goal of apprehending dangerous fugitives. On many occasions, fugitive investigations, arrests, and prosecutions, are successful because of our partners from local, county, state and tribal police agencies, which together with the United States Attorney’s Office, we are making safer communities for our children, families and friends.”
Alexander was arrested in Anaheim, Calif., on Jan. 10, 2014, on a criminal complaint charging him with violating SORNA by failing to register as a sex offender after traveling in interstate commerce, and subsequently transferred to New Mexico to face the charges in this case. According to the indictment, which was filed on May 14, 2014, Alexander violated SORNA by failing to register as a sex offender in Doña Ana County, N.M., between Sept. 1, 2013 and Sept. 23, 2013.
Trial against Alexander began yesterday. The evidence established that the U.S. Marshals Service initiated an investigation into Alexander in late Sept. 2013, after California authorities requested their assistance in locating and apprehending Alexander. The California authorities reported that Alexander, a fugitive who had violated the conditions of his probation, was believed to be residing in Las Cruces.
Through investigation, the U.S. Marshals Service learned that Alexander’s criminal history included a 2012 conviction for sexually assaulting a minor for which he was sentenced to four years in a California state prison. After he was convicted, Alexander was twice informed of his requirements to register as a sex offender. Alexander also signed forms acknowledging that he was required to register as a sex offender for the rest of his life and update his registration annually. Although Alexander registered as a sex offender in California after he was released from prison in Aug. 2013, he then traveled to Las Cruces without informing the California authorities of his intention to leave.
The U.S. Marshals Service’s investigation revealed that as of Sept. 23, 2013, Alexander had been living at a Las Cruces residence with a woman and her two children for three weeks. It also revealed that Alexander had not registered with the Doña Ana County Sheriff’s Department within three days of moving to New Mexico as required by SORNA.
The jury deliberated approximately 20 minutes before returning a verdict of guilty on the sole count of the indictment.
Alexander has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Alexander faces a statutory maximum penalty of ten years in prison.
U.S. Attorney Damon P. Martinez praised the efforts of the U.S. Marshals Service in the investigation. He also thanked the Doña Ana County Sheriff’s Department, Tustin (Calif.) Police Department and Santa Ana (Calif.) Police Department for their assistance in the investigation.
The case is being prosecuted by Assistant U.S Attorneys Amanda Gould and Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office.
Miami Resident Sentenced in Identity Theft Tax Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), announce that Josue Pierre, 30, of Miami, was sentenced today before U.S. District Judge Donald M. Middlebrooks to 30 months in prison, followed by three years of supervised release.
Pierre previously pled guilty to one count of use of unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(2), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, in early 2013, Pierre used his brother's IRS electronic filing identification number (EFlN) to obtain a batch of pre-paid debit cards from a tax refund payment company. Pierre then used this EFIN to file tax returns in other people's names containing false information for the purpose of obtaining refunds from the Department of Treasury. The refunds were paid out onto pre-paid debit cards activated in other people’s names, and Pierre made withdrawals on these debit cards at ATM locations.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, USSS and ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Man Sentenced to 30 Years for Child Sex Trafficking in Grand RapidsRead the Press Release
GRAND RAPIDS, MICHIGAN – Eddie Allen Jackson, 31, of Grand Rapids, was sentenced today to 30 years in federal prison in West Michigan’s first federal child sex trafficking case. A jury convicted Jackson in April 2014 on three counts of child sex trafficking.
From July to August 2012, Jackson recruited teenage girls ages 14, 15, and 16 in Muskegon to work for him by prostituting on the streets of Grand Rapids. He targeted vulnerable girls with troubled backgrounds, made them walk the streets for money, and took them to local hotels and semi-vacant houses to meet customers. Jackson controlled the girls through drugs, alcohol, threats, and violence. He also manipulated them by making them feel like he loved and cared about them when they felt that no one else did. The teens, whose identities are protected, were in 8th, 9th, and 10th grades at the time. In delivering the sentence today, the judge stated, “We have three young girls, who will become young women, who were significantly harmed by what he was doing” but yet Jackson “has not accepted any responsibility for this. None.” The judge remarked that the victims were “stripped of innocence and decency that these girls were entitled to have.”
“Protecting children is a top priority in our district, and those who prey on children will be prosecuted to the fullest extent of the law. I am pleased local, state, and federal authorities are working together effectively to locate and stop sex traffickers,” said U.S. Attorney Patrick A. Miles, Jr.
“Fighting to prevent the sexual exploitation of children is of the highest priority for local, state, and federal authorities, as reflected in the efforts of the FBI’s West Michigan-Based Child Exploitation Task Force,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “While no sentencing can ever fully repair the damage caused by crimes like this, Mr. Jackson’s punishment demonstrates the relentless fortitude of law enforcement to protect our children and bring those who prey upon them to justice.”
The federal sex trafficking laws protect children all the way to age 18 from being pimped for sex. Regular citizens – especially in schools, restaurants, convenience stores, and hotels – are in the best position to recognize when a child could be at risk of sex trafficking. While kids of every type of background can be lured into prostitution, some warning factors for child sex trafficking include:
• recent friendship or attention between a teenager and an older adult who may drive the teen places or provide a place to stay overnight;
• lack of organized afterschool and summer activities and supervision;
• running away (not necessarily overnight);
• suicidal/depressed;
• tension and fighting at home;
• unexplained new cash flow – including new clothing, nails, and hair styles (for girls) generally outside the teen’s financial reach;
• new cell phone not purchased by parent/guardian;
• checking in at a hotel with no luggage or sneaking into a hotel through a side door;
• drug/alcohol dependency; and
• low self-esteem.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney's Office; county prosecutor's offices; the Internet Crimes Against Children task force (ICAC); and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate communities about the dangers of online child exploitation and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement.
The FBI, in conjunction with the West Michigan Based Child Exploitation Task Force (WEBCHEX), the Grand Rapids Police Department, and the Muskegon Police Department investigated the case. Assistant U.S. Attorneys Tessa K. Hessmiller and Russell A. Kavalhuna prosecuted the case.
END
Los Angeles Sheriff’s Deputy Convicted of Obstruction of Justice for Interfering with Federal Civil Rights Investigation in County JailsRead the Press Release
LOS ANGELES – A deputy in the Los Angeles Sheriff’s Department was found guilty this afternoon of obstruction of justice for interfering with a grand jury investigation into misconduct at the Men’s Central Jail.
James Sexton becomes the seventh sworn officer to be found guilty of attempting to quash an investigation by the FBI into civil rights abuses at jail facilities operated by the Sheriff’s Department. The jury determined that Sexton was part of a broad conspiracy to obstruct justice – a plot in which conspirators, including two lieutenants, attempted to influence witnesses, threatened an FBI agent with arrest and concealed an FBI informant who should have been turned over to federal authorities.
“This case involves a select group of Sheriff’s Deputies who were tasked with ensuring safety and security within the jails, but they violated the law by trying to protect their department from federal scrutiny,” said Acting United States Attorney Stephanie Yonekura. “This case, which has now resulted the conviction of all seven charged, proves those who tarnish their badge and their oath will be brought to justice.”
Bill Lewis, the Assistant Director in Charge of the FBI’s Los Angeles Division, said: “Today’s verdict is another reminder that law enforcement must work together to protect the civil rights of all we serve. As we move toward ending a period of corruption and restoring trust at the Men’s Central Jail, we should also be reminded to respect the employees of the Los Angeles County Sheriff's Department who have continued to serve with distinction throughout the duration of this investigation.”
Sexton was found guilty of conspiring to obstruct justice and obstruction of justice. As a result of today’s convictions, Sexton faces a statutory maximum penalty of 15 years in federal prison when he is sentenced on December 1 by United States District Judge Percy Anderson.
The conspiracy to obstruct justice began in the summer of 2011 after sheriff’s deputies assigned to the Men’s Central Jail learned that a jail inmate was an FBI informant and was acting as a cooperator in a federal investigation into corruption and civil rights violations at the jail. The evidence showed that the defendants learned that the inmate received a cellular phone from a deputy sheriff who took a bribe and that the inmate was part of a federal civil rights investigation. Those involved in the obstruction scheme took affirmative steps to hide the cooperator from the FBI and the United States Marshals Service, which was attempting to bring the inmate into federal custody pursuant to an order issued by a federal judge. As part of the conspiracy, records were altered to make it appear as if the cooperator had been released, but he was re-booked under different names.
The jury heard evidence that Sexton, who was part of a gang intelligence unit called Operation Safe Jails, changed the name of the informant in the jail computer system and changed his booking number, which allowed members of the conspiracy to hide the informant from the FBI.
Six co-conspirators who were tried separated were found guilty of obstruction of justice and other charges earlier this summer (see: http://www.justice.gov/usao/cac/Pressroom/2014/082.html). Those defendants are scheduled to be sentenced by Judge Anderson on Monday, September 22.
Release No. 14-120
Lexington Man Sentenced to 20 Years for Receiving and Possessing Thousands of Child Pornography ImagesRead the Press Release
LEXINGTON, KY -A Lexington man, previously convicted of receiving and possessing thousands of child pornography videos, has been sentenced to 20 years in prison.
On Monday, U.S. District Judge Joseph M. Hood formally sentenced Erik A. Hentzen, 26, and also ordered him to serve a lifetime of supervised release, following the completion of his sentence. Under federal law, Hentzen will have to serve at least 85 percent of his prison sentence.
The evidence at Hentzen’s trial established that, from May 2012 to March 2013, Hentzen downloaded thousands of videos, which depicted prepubescent children engaged in sexually explicit conduct.
On March 23, 2013, investigators with the Kentucky Attorney General’s Office executed a search warrant and seized multiple computers belonging to Hentzen; the computers contained more than 4,000 videos depicting child pornography.
The investigation started when authorities discovered that Hentzen had stolen the internet signal of a neighbor in his apartment complex. Authorities later located numerous child pornography videos that had been made available for download over the internet. Investigators then traced the location of the computer to Hentzen’s apartment in downtown Lexington.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Jack Conway, Kentucky Attorney General; and Gary T. Hartwig, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), jointly announced the sentence.
The investigation was conducted by the Office of the Attorney General’s Cyber Crimes Unit and HSI. The Fort Mitchell Branch of the U.S. Attorney’s Office prosecuted the case on behalf of the federal government.
Lansing Fugitive and Wife ArrestedRead the Press Release
GRAND RAPIDS, MICHIGAN – Patrick A. Miles, Jr., United States Attorney for the Western District of Michigan, and Paul M. Abbate, Special Agent in Charge of the FBI in Michigan, announced the arrest of a Lansing fugitive and his wife. Eric Lopez, age 40, of Lansing, was arrested by the FBI as he left City Hall in Lansing on September 9, 2014. The FBI was assisted in its fugitive investigation by the Tri-County Metro Narcotics Squad. Eric Lopez had been indicted by a federal grand jury in Grand Rapids on April 16, 2014, together with co-defendants Jose Alvarez, Rudy Gelista, Nickey Joe Duprest, and Eddie Ramirez, on a charge of conspiracy to distribute cocaine and marijuana, and had avoided apprehension since that time. His wife, Christina Lopez, age 39, was also arrested. She has been charged with making false statements to the FBI, and for being an accessory after the fact to her husband’s drug charge by assisting him in avoiding apprehension. Eric Lopez has been ordered detained without bond pending trial with co-defendant Duprest, who has pled not guilty. The remaining co-defendants have all pled guilty. Christina Lopez was released on bond pending trial on her charges.
These indictments and convictions were the result of an ongoing Drug Task Force investigation in the Lansing, Michigan, area led by the FBI and the Tri-County Metro Narcotics Squad. The case is being prosecuted by Assistant U.S. Attorney John Bruha.
The charges are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law..
END
Lafayette Man Sentenced to 41 Months in Prison for Possessing a Firearm after Being Convicted of a FelonyRead the Press Release
LAFAYETTE, La. –A Lafayette man was sentenced Monday to 41 months in prison and three years of supervised release for being a convicted felon in possession of a firearm, U.S. Attorney Stephanie A. Finley announced today.
David J. Narcisse Jr., 33, of Lafayette, was sentenced by U.S. District Judge Richard Haik for one count of felon in possession of a firearm. According to evidence presented at the October 15, 2014 guilty plea, law enforcement discovered that a 12 gauge semiautomatic shotgun that had previously been reported stolen had also been pawned on September 6, 2012 in Lafayette. The person who pawned the shotgun stated that Narcisse had given it to him. After being arrested for another violation, Narcisse admitted to buying the firearm from a friend. Narcisse has previously been convicted in April of 2006 in 15th Judicial District Court in Lafayette of possession with intent to distribute cocaine; in August of 2008 in 15th Judicial District Court in Lafayette of Schedule II, prohibited acts; and in March 2010 in 16th Judicial District Court in St. Martinville of illegally carrying a weapon while in possession of a controlled dangerous substance.
The ATF, Louisiana Probation and Parole, and East Baton Rouge Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Myers P. Namie prosecuted the case as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide program designed to reduce violence by aggressively enforcing existing federal firearms laws.
Kentucky Man Sentenced to 10 Years for Soliciting Tennessee TeenagersRead the Press Release
Memphis, TN – Billy Ray Wyatt, age 54, of Hazel, KY, was sentenced to 10 years or 120 months in federal prison Friday following his guilty plea to one count of coercion of a minor to engage in sexual activity, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.
Beginning in February of 2012, Wyatt used the internet and social media to meet young females and groom them for sexual encounters. After meeting one 16-year-old girl from Paris, Henry County, Tenn., Wyatt drove to Tennessee and picked her up and took her back to Kentucky with the intent of having a sexual encounter. Wyatt is a former Henry County, Tenn. resident. Wyatt also communicated online and made overtures to an agent acting in an undercover capacity as a teenage female. In a recorded phone conversation, Wyatt talked to her about masturbation and what sexual acts he wanted to perform on her.
In addition to the prison sentence, U.S. District Judge J. Daniel Breen ordered Wyatt to serve five years of supervised release. There is no parole in the federal prison system.
This case was investigated by the Henry County Sheriff’s Office and the Federal Bureau of Investigation Child Exploitation Task Force. Assistant U.S. Attorney Debra Ireland represented the government.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative of 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, PSC 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 PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”
Individual Posing as Investment Adviser Sentenced to 46 Months for Operating A Million Dollar Investment Fraud SchemeRead the Press Release
Earlier today, a Brooklyn man who was convicted of wire fraud after defrauding a Hawaiian investor of $1 million was sentenced to 46 months of imprisonment to be followed by three years of supervised release and was ordered to pay $1 million in restitution. Telson Okhio, the vice president of Ohio Group Holdings, Inc. (“OGH”), an alleged investment firm, was sentenced by United States District Judge Roslynn R. Mauskopf at the federal courthouse in Brooklyn, New York. Okhio pleaded guilty to wire fraud in March 2012.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York.
Between February and April 2009, Okhio, posing as an investment adviser, solicited $5 million from an investor in Hawaii. Okhio assured the investor that he would invest his money in a $100 million trading platform in the foreign currency exchange market. Okhio also assured the investor that his investment would earn a 200 percent profit in four weeks and that his investment would never be at risk.
Almost immediately after the victim wired $5 million from a bank account in Hawaii to OGH’s bank account at a branch of Bank of America in Queens, New York, Okhio wire-transferred $1 million of the investment to his personal account at JPMorgan Chase in Queens, New York. From there, Okhio withdrew the $1 million through a series of cash and ATM withdrawals and wire transfers to third parties. The scheme resulted in approximately $1,000,000 in losses to the investor.
Soon after Okhio pleaded guilty, he attempted to withdraw his guilty plea. Following a hearing that spanned several months, Judge Mauskopf found that Okhio had lied several times during his testimony and denied his request to withdraw his guilty plea.
“Outwardly, Okhio wore the persona of a trusted investment adviser. In reality his image was a fraud and his promises part of the web of lies he used to ensnare his victim. Okhio sought to continue the con even after his guilty plea, as he attempted to deceive the court with his repeated lies. He viewed the court as just another ‘mark.’ He was wrong. Those who exploit investors for financial gain will be held accountable for their crimes and will face significant prison sentences,” stated United States Attorney Lynch.
Ms. Lynch extended her grateful appreciation to the Federal Bureau of Investigation, which led the government’s criminal investigation.
This prosecution was the result of efforts 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 http://www.StopFraud.gov.
The government’s case is being prosecuted by Assistant United States Attorney Sylvia Shweder.
The Defendant:
TELSON OKHIO
Age: 52
Brooklyn, NY
E.D.N.Y. Docket No. 12-CR-179 (RRM)
Indictment: Denver Man's Airplane, Cars, Cash Were Proceeds of Marijuana TraffickingRead the Press Release
WICHITA, KAN. – A federal indictment returned today in Wichita seeks the forfeiture of a business jet after the man flying the plane was arrested in July at the airport in Iola, Kan., U.S. Attorney Barry Grissom said.
Kenneth E. Weaver, 58, Denver, Colo., is charged in a superseding indictment with one count of possession with intent to distribute more than 50 kilograms of marijuana, one count of conspiracy to distribute marijuana, and one count of interstate travel in furtherance of drug trafficking.
The indictment seeks the forfeiture of a 1979 Israel Aircraft Industries Model 1124 jet aircraft, a 2007 Bentley Continental GT-C automobile and more than $450,000 in cash seized Aug. 8, 2014, in Sylmar, Calif.
Weaver was arrested July 11, 2014, after members of the Allen County Sheriff’s Office, the Wilson County Sheriff’s Office, the Kansas Highway Patrol and the Drug Enforcement Administration executed a search warrant on his plane and seized a load of marijuana.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $1 million on the possession count, a penalty of not less than 10 years and a fine up to $4 million on the conspiracy count, and a maximum penalty of five years and a fine up to $250,000 on the interstate travel charge. The Allen County Sheriff’s Office, the Wilson County Sheriff’s Office, the Kansas Highway Patrol and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
OTHER INDICTMENTS
Ryan B. Schmidt, 34, Wichita, Kan., is charged with two counts of robbery, two counts of brandishing a firearm during a robbery and one count of unlawful possession of a firearm following a felony conviction. The robberies are alleged to have occurred Sept. 4, 2014, and Aug. 19, 2014, in Wichita, Kan.
The indictment alleges that on Sept. 4, 2014, Schmidt entered the Gessler’s Drug Store at 4817 E. Douglas, pointed a handgun at an employee, and said, “I want your opiates.” The employee gave him seven bottles of hydrocodone and three bottles of promethazine.
The indictment also alleges that on Aug. 19, 2014, Schmidt entered the Parklane Pharmacy at 530 S. Oliver, pointed a handgun at an employee and demanded narcotics. The employee gave him two bottles of oxycodone and $120 in cash.
Upon conviction, the crimes carry the following penalties: Robbery: A maximum penalty of 20 years and a fine up to $250,000 on each count.
Brandishing a firearm: A penalty of not less than five years and a fine up to $250,000 on each count.
Unlawful possession of a firearm following a felony conviction: A maximum penalty of 10 years and a fine up to $250,000.
The Wichita Police Department investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.Justen L. Marks, 25, Wichita, Kan., is charged with one count of attempting to pass 15 counterfeit bills at the Walmart store at 501 E. Pawnee, and one count of possessing counterfeit currency. The crimes are alleged to have occurred Feb. 22, 2014, in Wichita, Kan.
If convicted, he faces a maximum of 20 years in federal prison and a fine up to $250,000 on each count. The Department of Homeland Security investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Kevin Hamill, 26, Garden City, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction, and one count of unlawful possession of ammunition after a felony conviction. The crimes are alleged to have occurred June 2, 2014, in Finney County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count. The Garden City Police Department investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Silvia Clemente-Rojo, 41, a citizen of Mexico, is charged with two counts of perjury, one count of buying a counterfeit Social Security card and one count of aggravated identity theft. The crimes are alleged to have occurred in September 2013 in Finney County, Kan.
If convicted, she faces a maximum penalty of five years in federal prison and a fine up to $250,000 on each count of perjury and on the count of buying a counterfeit Social Security card, and a mandatory consecutive two-year sentence on the aggravated identity theft count. The Kansas Department of Revenue and Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Saul Garcia-Hernandez, 38, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being deported. He was found Aug. 27, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. ICE’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Guillermo Amparan-Mendoza, 38, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being deported. He was found Aug. 27, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. ICE’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Leoga Beltran-Esquivel, 29, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Aug. 28, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Homeland Security Investigations investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Derik E. Steele, 29, Wichita, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction, one count of unlawful possession of a firearm by a user of controlled substances, one count of possession of methamphetamine, and one count of possession of marijuana. The crimes are alleged to have occurred June 8, 2014, in in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on the firearm count and the ammunition count, and a maximum a year and a fine up to $250,000 on each of the misdemeanor drug possession counts. The Wichita Police Department investigated. Assistant U.S. Attorney Lanny Welch is investigating.
Juan Enrique Esguival-Meza, 48, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Sept. 11, 2014, in Sedgwick County, Kan.
If convicted he faces a maximum penalty of two years in federal prison and a fine up to $250,000. ICE’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Luis Ramon Carrera-Morales, 59, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being deported. HE was found Sept. 11, 2014 in Sedgwick County, Kan.If convicted he faces a maximum penalty of two years in federal prison and a fine up to $250,000. ICE’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Honduran Man Pleads Guilty to Unlawful Reentry into United StatesRead the Press Release
Illegal Immigrant was Deported After Felony Drug Conviction
CHARLESTON, W. Va. - United States Attorney Booth Goodwin announced that Jorge Leonardo Reyes-Figueroa, 26, from Honduras plead guilty today in federal court in Charleston to the charge of illegal reentry into the United States following deportation.
In 2010, Reyes-Figueroa, an illegal immigrant from Honduras, was convicted in Adams County, Colorado of a felony drug offense involving heroin distribution. Following the criminal conviction, Reyes-Figueroa was deported to Honduras. Sometime thereafter, Reyes-Figueroa illegally reentered the United States. In May of 2014, officers with the West Virginia State Police found Reyes-Figueroa living in Ripley, West Virginia.
Reyes-Figueroa faces up to twenty years in prison, and a fine of $250,000 when sentenced on November 18, 2014. He is also subject to deportation from the United States back to Honduras.
The West Virginia State Police and the United States Department of Homeland Security conducted the investigation. Assistant United States Attorney Erik S. Goes is prosecuting the matter on behalf of the United States of America.
Holland Man Charged with Identity Theft and Making False StatementsRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced an indictment was filed against Wael Ahmed Hageali, age 44, of Holland, Ohio.
The indictment charges Hageali with making a false statement on a passport application on March 17, 2014 and aggravated identity theft.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Department of State, Bureau of Diplomatic Security. The case is being handled by Assistant United States Attorney Noah P. Hood.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
- Hidalgo Man Sentenced for Exporting Grenade Launcher Barrels
Hattiesburg Contractor Pleads Guilty to Federal Kickback SchemeRead the Press Release
Hattiesburg, Miss. -- Local contractor Mike Miller, 48, of Hattiesburg, pled guilty on September 15, 2014, to a kickback scheme which defrauded the U.S. Department of Agriculture, announced U.S. Attorney Gregory K. Davis, FBI Acting Special Agent in Charge Johnnie Sharp and Special Agent in Charge Mary L. Lewis of the U.S. Department of Agriculture Office of Inspector General.
A federal grand jury returned an indictment on October 22, 2013, against Miller, his company, Michael Miller Construction, LLC, and others, charging them with various crimes including conspiracy to defraud the federal government, theft of government funds, and bid-rigging. Others listed in the indictment were also charged with false statements.
T.L. Pittman, Jr. owns multiple apartment complexes throughout the State of Mississippi which were financed through USDA. Pittman, through his company Century Management, Inc., contracted with Mike Miller to work for one of Pittman’s USDA-financed apartment complexes. Prior to working for Century Management, Miller was told by Pittman that he would have to pay Pittman a kickback in order to be awarded contracts from Century Management. Miller agreed and began paying Pittman cash from the contracts that he was awarded by Century Management. As part of the conspiracy, Miller would pay Tim Pittman, T.L. Pittman, Jr.’s son, the kickback in cash with the understanding that it would be passed along to his father, T.L. Pittman, Jr.
Between February 2008 and November 2008, Miller submitted various false bids in the names of fictitious companies purporting to be legitimate bids competing with Miller’s bid for work for Century Management at Liberty Place Apartments. These false bids submitted by Miller were all higher than Miller’s own bid in order to ensure Miller was awarded the contract. As a result, Miller was awarded the contract for Liberty Place Apartments, and ultimately paid more than $50,000 pursuant to the contract, some of which he used to kickback cash to T.L. Pittman, Jr., paying such cash through T.L. Pittman, Jr.’s son, Tim Pittman.
Miller will be sentenced by U.S. District Court Judge Keith Starrett in Hattiesburg on December 4, 2014, at 1:45 p.m. The maximum penalty for Conspiracy is 5 years in prison and a $250,000 fine.
T.L. Pittman, Jr. pled guilty in May, 2014 and will be sentenced on October 27, 2014. He faces a maximum penalty of ten years in federal prison and a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation and the USDA Office of Inspector General. Assistant U.S. Attorney Mike Hurst is prosecuting the case.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Hamilton Man Pleads Guilty to Bank Robbery, Owning Child PornographyRead the Press Release
CINCINNATI – Shane E. Bowlin, 39, of Hamilton, Ohio, pleaded guilty in U.S. District Court yesterday to bank robbery, attempted bank robbery and possession of child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Steven Dettelbach, United States Attorney for the Northern District of Ohio, Barbara L. McQuade, United States Attorney for the Eastern District of Michigan, David J. Hickton, United States Attorney for the Western District of Pennsylvania, and Kevin R. Cornelius, Federal Bureau of Investigation (FBI) Special Agent in Charge, Cincinnati Division.
On or about June 20, 2013, Bowlin robbed a Fifth Third Bank in Lambertville, Mich. During that robbery he utilized a dangerous weapon. Later that month, he attempted to rob a Citizens Bank in Verona, Pa. and successfully robbed a PNC Bank in Cuyahoga Falls, Ohio. In July, he robbed the Delaware County Bank and Trust Company in Galena, Ohio.
In July, investigators discovered a large amount of cash in a hotel room occupied by Bowlin and in his vehicle. They also uncovered dye-stained money and disposable gloves tying him to the Lambertville robbery. During the search, officers also discovered approximately 1700 images and 55 videos depicting child pornography in a thumb drive and on a laptop computer.
U.S. Attorney Stewart commended the cooperative investigation by the FBI, Sharonville Police Department, Ohio Bureau of Criminal Investigation, Delaware County Sheriff’s Office, Cuyahoga Falls Police Department, Canal Fulton Police Department, Monroe County, Mich. Sheriff’s Office, and Penn Hills, Pa. Police Department, as well as Criminal Chief Kenneth L. Parker, who is representing the United States in this case.
Bowlin pleaded guilty to three counts of bank robbery, including the Michigan robbery which was originally filed in the Eastern District of Michigan and transferred to the Southern District of Ohio. He also pleaded guilty to one count of attempted bank robbery and possession of child pornography. The Michigan robbery carries a penalty of a punishable term of imprisonment of up to 25 years and a fine of $250,000. Each of the other counts is punishable by a term of imprisonment up to 20 years and a fine of up to $250,000.Four Men Sentenced for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that four south Missouri residents were sentenced in federal court today for their roles in a conspiracy to distribute methamphetamine.
Juan Moreno-Malagon, 40, of Highlandville, Mo., Jesus Moreno-Malagon, 56, of Ozark, Mo., Valentin Gomez-Torres, 27, of Battlefield, Mo., and Luis A. Ramon-Lara, 33, of Morrisville, Mo., were sentenced in separate appearances before U.S. Chief District Judge Greg Kays. Juan Moreno-Malagon was sentenced to 11 years and three months in federal prison without parole. Jesus Moreno-Malagon and Gomez-Torres were each sentenced to seven years and three months in federal prison without parole. Ramon-Lara was sentenced to four years and two months in federal prison without parole.
They are among nine co-defendants who have pleaded guilty and been sentenced in this case.
On Nov. 18, 2013, Juan Moreno-Malagon pleaded guilty to being one of the leaders of a multi-pound methamphetamine conspiracy operating in the Springfield area but also covering Polk, Christian and Taney Counties. The case began when couriers were intercepted in New Mexico and Texas with 4-kilogram loads of methamphetamine. The couriers indicated that the methamphetamine was going to Springfield. The federal investigation included controlled buys and additional seizures of methamphetamine, firearms and cash. Jesus Moreno-Malagon, Gomez-Torres and Ramon-Lara have also pleaded guilty to their roles in the drug-trafficking conspiracy.
During the investigation, co-defendant Noe Moreno-Malagon, 36, a citizen of Mexico residing in Ozark, Mo., left for Mexico and turned over distribution responsibilities to Juan Moreno-Malagon. After pleading guilty to his role in leading the conspiracy, Noe Moreno-Malagon was sentenced to 15 years in federal prison without parole, which must be served consecutively to his prison sentence in an unrelated state case.
On Dec. 3, 2012, a search warrant was executed in Morrisville, Mo. During the search, DEA agents located 338.1 grams of pure methamphetamine, as well as a handgun and a rifle. The DEA also conducted a search at a Springfield residence believed to be a stash house for the organization. At that location, agents found 123.6 grams of pure methamphetamine.
On Feb. 13, 2012, federal law enforcement agents seized 362 grams of pure methamphetamine (approximately one pound) from co-defendant Paul E. Allen, 59, of Purdy, Mo. Allen admitted to receiving the methamphetamine from Juan Moreno-Malagon. Allen was sentenced to seven years in federal prison after pleading guilty to his role in the conspiracy.
On June 22, 2012, 224.4 grams of pure methamphetamine was seized from co-defendant Michael D. Eckhoff, 53, of Republic, Mo. Eckhoff admitted that he received the methamphetamine from Gomez-Torres, and that the transaction was arranged by Juan Moreno-Malagon. Eckhoff also admitted that he had received methamphetamine from Noe Moreno-Malagon in the past. Eckhoff was sentenced to three years in federal prison without parole after pleading guilty to his role in the drug-trafficking conspiracy.
In addition to the seizures, two controlled buys were made on March 27, 2012 and April 12, 2012. In March, 125.1 grams of pure methamphetamine was purchased, and in April, 117.5 grams of pure methamphetamine was purchased. The buys were arranged through Juan Moreno-Malagon. Jesus Moreno-Malagon conducted the actual distribution of methamphetamine on April 12, 2012.
In July, 2012, Noe Moreno-Malagon returned from Mexico and took the operation back over. Communications were intercepted between Noe Moreno-Malagon and Ramon-Lara discussing and arranging for the distribution of methamphetamine. Noe Moreno-Malagon would direct Ramon-Lara to make deliveries of methamphetamine for him.
Co-defendant Rita J. Vera, 35, of Monett, Mo., was sentenced to five years in federal prison without parole after pleading guilty to her role in the conspiracy. Co-defendant Timothy J. Williams, 49, of Strafford, Mo., was sentenced to two years and eight months in federal prison without parole after pleading guilty to his role in the conspiracy.
This case is being prosecuted by Assistant U.S. Attorney Gary Milligan. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Missouri State Highway Patrol, and task force officers from the Greene County, Mo., Sheriff’s Department, the Christian County, Mo., Sheriff’s Department, the Ozark, Mo., Police Department, the Springfield, Mo., Police Department, the South Central Drug Task Force and COMET (the Combined Ozarks Multijurisdictional Enforcement Team).Former Social Security Employee Pleads Guilty to $10,000 Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former employee of the Social Security Administration pleaded guilty in federal court today to illegally accessing personal identification information as part of a nearly $10,000 fraud scheme to steal from the government.
Mary Francis Taylor, 54, of Kansas City, Mo., waived her right to a grand jury and pleaded guilty before U.S. District Judge Howard F. Sachs to a federal information that charges her with theft of government money.
Taylor worked as a teleservice technician in the Social Security Administration’s Mid-America Program Service Center in Kansas City, Mo., until she resigned on Jan. 10, 2014. In that role, she had access to sensitive private information for all individuals who possess a Social Security number.
Taylor admitted today that she found a NetSpend debit card on a public bus in August 2013. She took the NetSpend debit card as well as some documents that contained additional personal identification information. Taylor called NetSpend, falsely claiming to be the cardholder (identified as Victim 1), and instructed NetSpend to add another beneficiary to the debit card. Taylor possessed identity information for this new beneficiary, identified as Victim 2, because she found Victim 2’s case file on a co-workers desk.
Taylor illegally accessed the SSA computer system to create an overage to Victim 2’s record, which was direct deposited into the bank account linked to the debit card that was stolen from Victim 1. As a result, SSA direct deposited $9,853 into that bank account.
Taylor used the debit card to pay off her account at Aaron’s and to pay arrearages on her home mortgage, utilities and car loan.
Under federal statutes, Taylor is subject to a sentence of up to 10 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney William A. Alford III. It was investigated by Social Security Administration, Office of Inspector General, Office of Investigations.Former Las Vegas Doctor Sentenced to over 3 1/2 Years in Prison for Selling Prescription Painkillers to Undercover DEA AgentRead the Press Release
LAS VEGAS, Nev. – Former Las Vegas physician Vinay Bararia, 44, was sentenced today to 44 months in prison and three years of supervised release for unlawfully selling hydrocodone and oxycodone to an undercover DEA agent in a hospital parking lot, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
“Stopping the unlawful distribution of prescription painkillers has been a top priority for our office,” said U.S. Attorney Bogden. “The days of persons being able to easily acquire these dangerous drugs from corrupt doctors and pharmacists are coming to an end.”
The sentence was imposed by U.S. District Judge Jennifer Dorsey, who also ordered Bararia to forfeit approximately $50,000 in cash and the 2007 Jaguar vehicle he used to distribute the drugs, and increased his sentence for abusing his position of trust as a doctor.
Judge Dorsey denied Bararia’s request for a reduced sentence based on arguments by his attorneys that he had diminished mental capacity, extenuating family circumstances, or that he acted aberrantly when he committed the crime.
Bararia was originally charged in March 2012, and pleaded guilty on Dec. 18, 2013, to one count of distribution of a controlled substance. According to the guilty plea agreement, on July 20, 2011, Bararia unlawfully sold 500 hydrocodone pills for $1125 to a DEA undercover agent in the parking lot of Centennial Hills Hospital. Bararia’s sentence included other relevant conduct, including the unlawful distribution of approximately 3,600 oxycodone pills between July 28 and Nov. 8, 2011, and the possession of 2,038 oxycodone pills that were recovered from his vehicle on March 1, 2012, when he was arrested in the parking lot of the hospital.
Bararia has been in federal custody since November 2012, as a result of repeated violations of his conditions of release. He surrendered his license to practice medicine in Nevada in March 2013.
This case was investigated by the DEA and prosecuted by Assistant U.S. Attorneys Susan Cushman and Robert Knief.
Former Gates Mills Man Charged with Defrauding Investors Out of Millions of DollarsRead the Press Release
A 19-count federal indictment was filed charging a former Gates Mills resident with operating a $9.6 million investment scheme in which he defrauded investors and enriched himself, law enforcement officials said.
Oscar Villarreal, age 27, of Mexico, used the ill-gotten money to purchase a Lamborghini, a Steinway piano and otherwise live a lavish lifestyle, according to the indictment.
He has been charged with 10 counts of wire fraud, seven counts of money laundering, one count of securities fraud and one count of investment adviser fraud.
“This defendant used lies and deception to rip off investors and lead an extravagant lifestyle,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
“Mr. Villarreal utilized his charisma and bogus information to defraud hard working individuals,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office. “It is believed that Mr. Villarreal has fled the Cleveland area and the FBI is asking the public to provide any information they have regarding his current whereabouts so that he may answer for his numerous years as a fraudster.”
“When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
The investment scheme took place between 2008 and 2013. At different times, Villarreal operated numerous partnership or limited liability corporations, including WW Capital III, L.P., WW Capital III LLC (also known as WWCIII), WW Capital Partners LLC, (also known as Fund II) and Black Mountain Enterprises, LLC, and maintained several bank accounts and E-Trade trading accounts, according to the indictment.
WWCIII was a fund that purported to pursue investments with companies in Mexico related to the petroleum, steel, metals and real estate industries. Villarreal promoted and sold investment contracts in the form of limited partnership interests in the funds to approximately 46 investors in Ohio, Florida, New Jersey and New York in the amount of more than $9.6 million, according to the indictment.
From January 2008 through January 2009, Villarreal solicited approximately $550,000 from seven investors for Fund II, falsely representing the money would be used in the Mexican metal industry, according to the indictment.In February 2009, Villarreal distributed approximately $715,000 to Fund II investors, which he misrepresented as profits from their investment. He failed to disclose to investors that he had received a consulting fee of $1.5 million from a Cleveland-area company for unrelated services, and that he used money from that, as well as from his personal line of credit, to pay Fund II investors. Villarreal later falsely represented to potential investors in WWCIII that Fund II had generated a 45 percent rate of return, when he knew Fund II had generated no returns, according to the indictment.
Rather than investing WWCIII funds for their stated purpose, Villarreal used investor money to make speculative trades from his E-Trade accounts, pay business expenses necessary to promote the investment scheme, purchase luxury items such as a Steinway piano and a Lamborghini, and otherwise fund a lavish lifestyle, according to the indictment.
Villarreal falsely reported to WWCIII investors, both orally and in writing, that their funds would be pooled and used to invest in the Mexican steel and petroleum industries, Mexican real estate and/or Mexican infrastructure projects. Villarreal further represented that he would use personal and family business connections in Mexico to make the investments, according to the indictment.
Instead, he diverted investor funds into an E-Trade account where he made speculative stock trades which lost millions of dollars in investor funds. Villarreal falsely represented to WWCIII investors that they were achieving positive returns on their investments, causing most investors to be lulled into the belief they were making money. Based upon his false statements, some of the WWCIII investors placed even more money into other investment opportunities offered by Villarreal, according to the indictment.
This indictment is the result of an investigation by Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigations and the Securities and Exchange Commission. The case is being prosecuted by Assistant U.S. Attorney Adam Hollingsworth and Special Assistant U.S. Attorney Derek Kleinmann.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Detroit Public Library Official Sentenced for BriberRead the Press Release
Timothy Cromer, a former Detroit Public Library official, was sentenced today to 10 years in prison for bribery and conspiracy to commit bribery, U.S. Attorney Barbara L. McQuade announced today.
Joining McQuade in the announcement were Special Agent in Charge Paul M. Abbate, Federal Bureau of Investigation, Detroit Field Office, and Jarod Koopman, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation.
Cromer, 47, of West Bloomfield, the library's Chief Administrative and Technology Officer from 2006 to 2013, was sentenced by U.S. District Judge George Caram Steeh.
Cromer was charged with taking more than $1.4 million in bribes and kickbacks from contractors of the library. According to the indictment, Cromer helped co-defendant James Henley create a business in 2007 called Core Consulting & Professional Services, and then arranged for Core to win a bid to provide information technology services to the library. The contract, along with various change orders and extensions that Cromer approved, caused the library to pay Core $1.8 million.Cromer was also charged with receiving kickbacks from Ricardo Hearn, who is also charged in the indictment. Cromer was charged with approving no-bid professional services contracts for Hearn’s company, Cubemation, LLC, to perform information technology services for the library from 2008 until 2010. According to the indictment, Cubemation received about $2.8 million in payments from the Detroit Public Library. In total, Cromer is alleged to have accepted more than $1.4 million in kickbacks from Henley and Hearn.
Through his plea, Cromer admitted that he received a bribe from Henley, and that he conspired with Hearn to commit bribery. Codefendants Henley and Hearn previously pleaded guilty to conspiracy to commit bribery, and will be sentenced on October 28, 2014.
United States Attorney McQuade said, "Our public libraries exist to enrich our citizens, not to generate profits for the officials who work there. Today's sentence protects the important interests of taxpayers, library patrons and the honest public servants who have dedicated themselves to the Detroit Public Library."
“As a government official, Mr. Cromer abused his position of trust and stole from the community,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “Today’s sentencing reflects the resolve of law enforcement to continue the fight on behalf of our citizens, and bring those who violate their public oath to justice.”
"The sizeable amount of the kickbacks Cromer received represents the degree to which he was cheating the public," said IRS Acting Special Agent in Charge Jarod Koopman. "It is unacceptable to help yourself to public funds, but if you do IRS-Criminal Investigation will be there to seek justice on behalf of the citizens of Detroit."
The case was investigated by agents of the FBI and the IRS. This case was prosecuted by Assistant United States Attorneys Elizabeth A. Stafford and Julie Beck.Former DeKalb and Georgia World Congress Center Official Indicted on Public Corruption ChargesRead the Press Release
ATLANTA - Patrick Jackson, a former janitorial services manager for DeKalb County and Georgia World Congress Center, has been indicted and arraigned on charges of mail fraud and bribery.
“Jackson is charged with abusing his official positions with DeKalb County and the Georgia World Congress Center,” said United States Attorney Sally Quillian Yates. “According to the indictment, over a six-year period he accepted bribes in exchange for his helping a company attain and maintain exclusive government contracts.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: "The FBI Atlanta office's public corruption program remains very active and determined in exposing the criminal conduct of public officials. The investigation and indictment of Mr. Jackson serves as further example of the FBI's commitment toward accountability for those serving the public and holding positions of trust."
According to United States Attorney Yates, the charges, and other information presented in court: Jackson was simultaneously employed by two government entities, DeKalb County and Georgia World Congress Center, from approximately 2006-2012. In both positions, he served as the manager of janitorial services. The indictment alleges that Jackson used his position as a public official to obtain favors from a company, identified only as “Company A,” that provided janitorial services to both DeKalb County and Georgia World Congress Center. Jackson was employed by “Company A” prior to his employment with DeKalb County and Georgia World Congress Center.
While employed by DeKalb County and Georgia World Congress Center, Jackson lived in a luxury apartment in Atlanta that was being paid for and furnished by “Company A.” In exchange, Jackson agreed to use his position as a public official to benefit the interests of “Company A” in its business dealings with DeKalb County and Georgia World Congress Center. Jackson did not disclose to either employer that “Company A” was providing him with an apartment. The indictment alleges that, by accepting these bribes, Jackson deprived his employers of their right to his honest services.
Patrick Jackson, 55, of Loganville, Ga., was arraigned before United States Magistrate Judge Linda T. Walker. Jackson was indicted by a federal grand jury on September 9, 2014.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorneys Jamie L. Mickelson and Kamal Ghali are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Controller for Washington, D.C. Law Firm Pleads Guilty to Federal Charge in Theft of over $960,000-Defendant Shifted Money from Firm’s Bank Accounts-Read the Press Release
WASHINGTON - Marc England, 44, pled guilty today to a federal charge stemming from his theft of over $960,000 from a Washington, D.C. law firm, announced U.S. Attorney Ronald C. Machen Jr. and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office.
England, of Covington, La., pled guilty in the U.S. District Court for the District of Columbia to one count of wire fraud. The Honorable Judge Tanya S. Chutkan scheduled sentencing for Dec. 2, 2014. Under federal sentencing guidelines, England faces a likely range of 33 to 41 months of incarceration, as well as a fine of up to $75,000. The government maintains that the victim’s losses total at least $961,404. Under the plea agreement, England also must pay restitution to the victim. England is subject to an additional forfeiture money judgment.
According to the government’s evidence, England worked at a firm identified in court documents as “Company A,” a small law firm in Washington, D.C., as the company’s controller. Beginning in August 2008, England began sending wire payments from the law firm’s bank account directly to various credit card accounts that he himself held. For some of the unauthorized transactions, England used the firm’s electronic accounts system to create fraudulent invoices appearing on their face to justify his unauthorized debits. Over the course of a four-year period, England caused the firm to execute 126 separate interstate wire transfers of monies from the firm’s checking account to various accounts held by England.
In announcing the plea, U.S. Attorney Machen and Assistant Director in Charge McCabe commended the work of those who investigated the case from the FBI’s Washington Field Office. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Donna Galindo, Corinne Kleinman, and Angela Lawrence; Assistant U.S. Attorneys Catherine K. Connelly and Arvind K. Lal, who handled forfeiture issues, and Assistant U.S. Attorney Richard DiZinno, who investigated and prosecuted the matter.
14-207Former Cay Clubs Executives Charged in Connection with $300 Million Ponzi Scheme Involving Sales of Vacation Rental UnitsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Michael Stephens, Acting Inspector General, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), announce that Fred Davis Clark, Jr., a/k/a Dave Clark, 56, and Cristal R. Clark, a/k/a Cristal R. Coleman, 41, both formerly of Monroe County, were charged in a superseding indictment with conspiracy to commit bank fraud and multiple counts of bank fraud, in connection with a $300 million fraud scheme involving the sale of vacation rental units to approximately 1,400 investors in the Florida Keys and elsewhere.
According to the superseding indictment, Fred Davis Clark and Cristal Clark were executives of Cay Clubs Resorts and Marinas (Cay Clubs), which operated from 2004 through 2008 from offices in the Florida Keys and Clearwater. Cay Clubs marketed vacation rental units for 17 locations in Florida, Las Vegas and the Caribbean, to investors throughout the United States. Cay Clubs would promise to develop dilapidated properties into luxury resorts, and would promise investors an upfront “leaseback” payment of 15 to 20% of the sales price of the unit at the time of closing. Once an investor agreed to purchase a unit, Cay Clubs would arrange for a real estate closing and lender financing, but would not disclose the leaseback payment and other financial inducements to the investors on paperwork submitted to lending institutions. Cay Clubs would also use fraudulent representations in marketing the investments, including using insider sales to increase the price of the units and reporting these sales on marketing materials. Cay Clubs never made the improvements that were promised to investors.
By at least 2006, Cay Clubs did not have sufficient funds to make improvements to properties or to make the leaseback payments that had been promised to earlier investors. Cay Clubs would use the proceeds of sales to new investors to make incremental leaseback payments to earlier investors. Without obtaining more loan proceeds from new investor sales, Cay Clubs would have collapsed. In this way, Cay Clubs came to operate as a Ponzi Scheme.
After the collapse of Cay Clubs, the U.S. Securities and Exchange Commission began an investigation into alleged securities fraud at Cay Clubs. According to the indictment, Fred Davis Clark and Cristal Clark thereafter engaged in conduct aimed at concealing the location of assets under their control, and Fred Davis Clark gave false and misleading testimony to the SEC.
Through a previous indictment unsealed in June 2014, Fred Davis Clark and Cristal Clark were charged with conspiracy to commit mail and wire fraud, and mail fraud, in connection with a scheme to steal money from CMZ Group, Ltd., a Cayman Islands company that operated pawn shops in the Caribbean. According to the initial indictment, after the collapse of Cay Clubs, Fred Davis Clark and Cristal Clark used bank accounts and shell companies based in Key Largo that they had used during their Cay Clubs activities, to siphon off funds from the business operations of CMZ Group, so that they could lead a lavish lifestyle in the Caribbean.
Furthermore, in or around January 2013, shortly before an action was brought by the SEC alleging that they committed securities fraud, the indictment alleges, Fred Davis Clark and Cristal Clark caused the transfer of more than $2 million to a bank account they controlled in Honduras for the purpose of preventing the SEC from learning the location and control of these monies. These funds have since been frozen by the government of Honduras.
Fred Davis Clark and Cristal Clark were expelled from Panama and Honduras, respectively, in June 2014, and were ordered detained pretrial by U.S. Magistrate Judge Lurana S. Snow. They currently await trial on these charges in Key West before U.S. District Judge Jose E. Martinez.
Mr. Ferrer commended the investigative efforts of IRS-CI, ICE-HSI and FHFA-OIG, and the assistance of the SEC Miami Regional Office in this matter. The matter is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.
An indictment is only an accusation and the defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Agency Employee Sentenced for Fraud Related to Tornado BenefitsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former employee of an agency that administered disaster relief funds was sentenced in federal court today for her role in a wire fraud scheme following the tornado that struck Joplin, Mo., on May 22, 2011.
Herlana L. Latham, 32, of Memphis, Tenn., formerly of Joplin, Mo., was sentenced by U.S. Chief District Judge Greg Kays to 14 months in federal prison without parole. The court also ordered Latham to pay $6,745 in restitution.
On March 10, 2014, Latham pleaded guilty to participating in a conspiracy to defraud the Economic Security Corporation of Southwest Area (ESC). The not-for-profit corporation administered a rental assistance program, the Missouri Housing Trust Fund (MHTF) Disaster Relief Program. This program disbursed funds to landlords who rented to clients who had been displaced by natural disasters, including the May 22, 2011, tornado that struck Joplin.
Latham, an employee of ESC, and conspirators stole a total of $8,565 from the rental assistance program. Co-defendants Christopher L. Smith, 36, and John L.Williams, 31, both also of Memphis and formerly of Joplin, have also pleaded guilty to their roles in the conspiracy. Williams was sentenced to eight months in federal prison and ordered to pay $6,945 in restitution. Smith was sentenced to three years of probation and ordered to pay $3,935 in restitution.
Latham submitted applications for rental assistance for payments to Smith and Williams, who were not the landlords or property managers of ESC clients. Latham did so by verifying false landlord information on the application forms.
Smith assisted in the wire fraud scheme in two fraudulent transactions. In June or July 2012, Smith signed two MHTF program applications as landlord/property manager/mortgagee, which was false and fraudulent in that Smith then knew he was not a landlord, property manager, or mortgagee entitled to receive MHTF program funds. Based on the false application, the Economic Security Corporation issued a $1,850 check to Smith on June 21, 2012, and a $2,085 check to Smith on July 26, 2012.
Williams assisted in the scheme by serving as a purported landlord on two fraudulent applications for rental assistance, and also by accompanying other check recipients to the bank to cash their checks, in order to collect the proceeds of the fraud. The Economic Security Corporation issued two rental assistance checks to Williams totaling $3,050.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the Missouri State Highway Patrol.Five People Indicted on Charges Involving Large Drug ConspiracyRead the Press Release
St. Louis, MO – These five men were indicted for their alleged conspiracy and distribution of large quantities of cocaine and methamphetamine in Audrain County. Travis and Cody McDonald are also charged with growing over 100 marijuana plants between September 2007 and the present time and laundering the proceeds of the illegal activity.
The defendants were arrested by agents Monday.
Individuals indicted:
- TRAVIS EUGENE McDONALD, Montgomery City, Missouri,
- CODY WAYNE McDONALD, Vandalia, Missouri,
- WILLIAM RAY LAIRD, Vandalia, Missouri,
- RUSSELL DALE GAY, Columbia, Missouri, and
- JOHN WESLEY HARRISON, Annada, Missouri
If convicted, each count of conspiracy to distribute in excess of 500 grams of cocaine and conspiracy to manufacture in excess of 100 marijuana plants carries a penalty range of 5 to 40 years in prison and or fines up to $5 million. Conspiracy to distribute in excess of 500 grams of methamphetamine carries a penalty range of ten years to life in prison. Money laundering carries a maximum penalty of 20 years in prison and/or fines up to $500,000. 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 Drug Enforcement Administration, Internal Revenue Service, the East Central Missouri Drug Task Force, the North Eastern Missouri Drug Task Force, Missouri Highway Patrol, Audrain County, Lincoln County and Warren County Sheriff’s Departments and St. Louis, Troy and Jefferson City, Missouri Police Departments. Assistant United States Attorney John T Davis 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.Essex Junction Man Sentenced to Prison for Child Pornography OffenseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Michael Beaudoin, 29, of Essex Junction, Vermont, was sentenced on September 15, 2014, in United States District Court in Burlington, Vermont, to serve 121-months imprisonment and a 15-year period of supervised release following his conviction on one count of possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B). Chief Judge Christina Reiss also ordered Beaudoin to pay a $100 special assessment.
According to court records and proceedings, law enforcement personnel conducting undercover operations on a file-sharing program discovered that a computer later identified as belonging to Beaudoin was offering to share image files depicting child pornography. Law enforcement seized Beaudoin’s computer pursuant to a search warrant on August 13, 2013, and later discovered images and videos depicting child pornography on it.
In 2011, Beaudoin was convicted of sexual assault of a minor less than 16 years old. He ultimately served 31 months of his sentence and was on state probation at the time the search warrant was executed. He had been out of custody for approximately two months was law enforcement discovered that he was using the file-sharing program to share images of child pornography.
United States Attorney Coffin commended the efforts of the Vermont Attorney General, the Office of Immigration and Customs Enforcement, and the Vermont Internet Crimes Against Children Task in the prosecution of Beaudoin.
The prosecution of Beaudoin was handled by Assistant U.S. Attorney Barbara A. Masterson. Beaudoin was represented by Michael J. Straub.
U.S. Attorney Coffin noted that this prosecution is part of the U.S. Department of Justice=s Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.