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Friday 25 July 2014
Rochester Hills Man Sentenced to Federal Prison for Jury TamperingRead the Press Release
A Rochester Hills man was yesterday sentenced yesterday to 34 months in federal prison for jury tampering, United States Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office.
Marcus Little, 51, who was convicted in September 2013 of Endeavoring to Influence a Juror and Making a False Statement to a Federal Agent, was sentenced by United States District Judge Patrick Duggan.
The evidence presented during the trial showed that Little was present at a fraud trial in May 2011 as an observer. The trial which was held in Ann Arbor, Michigan involved three defendants who were charged with defrauding financial institutions by obtaining fraudulent mortgages on houses in Birmingham. The alleged fraud amount was more than $7 million. Little was able to learn where one of the jurors in that trial resided. During a long break in the trial, he drove to the home of the juror and tried to influence the juror on behalf of the defendants on trial. The juror immediately reported this to the police and the court.
During the course of the jury tampering investigation, the agents questioned Little. In an attempt to divert attention from himself as a suspect, Little lied to the agents. Because of the lies and other information gathered by the agents, they were able to determine that he was the person who attempted to influence the juror.
The case was investigated by the Federal Bureau of Investigation and the United States Marshals Service.
Queens Man Sentenced for Possession of Counterfeit $100 BillsRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that O’Neal Walker, 33, of Queens, N.Y., who was convicted of possession of counterfeit bank notes, was sentenced to 18 months in prison by U.S. District Court Judge Frank P. Geraci. The defendant was also ordered to pay $44,700 in restitution.
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that on September 22, 2013, New York State Troopers stopped a vehicle driven by the defendant on Interstate 390 in the town of Wayland in Steuben County. Walker was driving 102 mph in a 65 mph zone and had no valid driver’s license. Following the defendant’s arrest, troopers located $8,700 in $100 bank notes inside the car along with a financial ledger book. Inside the ledger were columns which showed dollar amounts and abbreviations for retail locations. The New York State Police contacted the United States Secret Service for investigative assistance.
The sentencing is the culmination of an investigation on the part of Special Agents of the United States Secret Service, under the direction of Special Agent in Charge, Tracy Gast, and Investigators and Troopers of the New York State Police, under the direction of Major Scott Crosier.
Secret Service Agents determined that 87 of the $100 bills recovered were actually sophisticated counterfeit bills, complete with water marks, color shifting ink, and embedded security strips. They further determined that the ledger notations were references to Home Depot, Lowes, Target, and Wal-Mart stores. As part of the investigation, Secret Service Agents reviewed store surveillance video from the dates and times of the transactions listed in the ledger. The defendant was identified on video at several area stores passing counterfeit $100 bank notes. Subsequent investigation determined that Walker had passed an additional $14,100 in counterfeit $100 bank notes within the Western District of New York. At the time the defendant passed the counterfeit bills here, he was on pre-trial release for similar conduct in the State of Ohio.
As part of the investigation, Secret Service Agents learned that Walker was also identified passing counterfeit $100 bank notes in several other states. Specifically, the defendant was identified passing $2,000 in counterfeit $100 bank notes in Ohio; $600 in counterfeit $100 bank notes in Massachusetts; $13,500 in counterfeit $100 bank notes in Syracuse, within the Northern District of New York; $19,700 in counterfeit $100 bank notes in Michigan; and $6,800 in counterfeit $100 bank notes in Arkansas. The total loss due to Walker’s actions was $65,300.President of Investment Advisory Firm Found Guilty in Manhattan Federal Court for Multi-Million Dollar Investment Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that JAMES TAGLIAFERRI, formerly the president of TAG Virgin Islands (“TAG”), was found guilty yesterday in Manhattan federal court of investment adviser fraud, securities fraud, multiple counts of wire fraud, and multiple counts of violating the Travel Act, in connection with his multi-faceted fraudulent scheme. TAGLIAFERRI, through TAG, an SEC-registered investment adviser: (a) accepted undisclosed compensation in exchange for causing his clients to invest in certain securities, (b) used client funds for illegitimate purposes, including re-paying other clients, and (c) caused fictitious securities instruments to be placed in client accounts. In total, TAGLIAFERRI’s scheme caused clients to lose at least $50 million. TAGLIAFERRI was convicted after a four-and-a-half week trial presided over by U.S. District Judge Ronnie Abrams.
Manhattan U.S. Attorney Preet Bharara said: “James Tagliaferri not only shirked his duty to act in his clients’ best interests, as investment advisers are obligated to do, he orchestrated a scheme to defraud them – taking millions of dollars in undisclosed compensation in exchange for placing their money in certain investments. With yesterday’s guilty verdict, Tagliaferri will now be punished for his actions.”
According to the Superseding Indictment filed in Manhattan federal court, other court documents, and the evidence presented at trial:
In 2007, TAGLIAFERRI opened TAG in the U.S. Virgin Islands and began offering investment advisory services to clients through that company. Previously, TAGLIAFERRI had offered such services through another company, Taurus Advisory Group, which was based in Connecticut.
Beginning in 2007, TAGLIAFERRI executed a multi-faceted scheme to defraud TAG clients. First, TAGLIAFERRI began taking undisclosed fees in exchange for placing client funds in certain companies. He received at least $1.6 million in undisclosed fees in exchange for causing clients to invest in the securities of a horse-racing company located in Garden City, New York (“Company 1”). TAGLIAFERRI placed at least $40 million of client funds in investments relating to Company 1. He also received at least approximately $1.75 million in undisclosed compensation in exchange for placing client funds in several companies affiliated with an associate of his (“Associate 1”). Ultimately, TAGLIAFERRI placed at least $80 million in client funds in investments relating to these companies.
TAGLIAFERRI often used his clients’ money to finance these undisclosed payments to TAG. He did this by transferring client funds from custodial accounts to a trust account maintained by an attorney. He then diverted a portion of those funds – the undisclosed fee – from the trust account to a TAG account in the Virgin Islands that he controlled. By routing fees to TAG through this trust account and other third-party accounts, TAGLIAFERRI was able to receive these fees with no record of such fees appearing on the monthly statements that custodial financial institutions sent to TAG clients.
Second, TAGLIAFERRI used client funds for improper purposes, including making payments to other clients who were demanding their money, and to make payments on behalf of companies he was affiliated with, including Company 1. He orchestrated a complex series of transactions between and among TAG client accounts to access funds for these purposes. For example, when an immediate need for funds arose, he caused clients to purchase shares of a publicly-traded company affiliated with Associate 1 from a client account affiliated with Associate 1 that TAGLIAGERRI controlled. Once those sales took place and TAG client funds were transferred to that account, he used those funds for his own purposes, including for payments to other clients demanding their money.
Third, TAGLIAFERRI caused fictitious securities – which he identified as “sub-notes” – to be placed in client accounts. These sub-notes purportedly obligated a company located in Pennsylvania (the “Pennsylvania Company”) to make payments to TAG clients based upon supposed promissory note agreements between the Pennsylvania Company and TAG. In reality, and as TAGLIAFERRI well knew, the Pennsylvania Company never executed any agreement that obligated it to make payments to TAG or TAG clients.
TAGLIAFERRI, 75, of St. Thomas, U.S. Virgin Islands, was convicted of one count of investment adviser fraud and six counts of violating the Travel Act, which each carry a maximum sentence of five years in prison. He was also convicted of one count of securities fraud and four counts of wire fraud, which each carry a maximum sentence of 20 years in prison. The jury was unable to reach a verdict regarding one wire fraud count and one Travel Act count, and a mistrial was declared as to those two counts. TAGLIAFERRI is scheduled to be sentenced by Judge Abrams on November 7, 2014. 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 U.S. Postal Inspection Service and the Criminal Investigators of the United States Attorney’s Office. He also thanked the United States Securities and Exchange Commission and the U.S. Attorney’s Office for the Eastern District of North Carolina for their assistance in this matter.
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 Jason H. Cowley and Parvin D. Moyne, and Special Assistant United States Attorney Saima S. Ahmed of the United States Securities and Exchange Commission are in charge of the prosecution.
Tagliaferri, James Indictment
Orlando Man Arrested on Federal Drug Trafficking and Gun ChargesRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the arrest today of Fredrick Collins, Sr. (36, Orlando) on an indictment returned on April 9, 2014, charging him with distribution of cocaine, possession with intent to distribute cocaine and methylone, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon. If convicted on all charges, Collins faces a maximum penalty of life in federal prison. The indictment also notifies Collins that the United States intends to forfeit a firearm and ammunition seized from his home during the investigation.
According to the indictment, on three dates in September 2013, Collins possessed cocaine with the intent to distribute it. The indictment also alleges that Collins possessed methylone, a Schedule I controlled substance, with the intent to distribute it and that he possessed a .40 caliber semi-automatic pistol in furtherance of his drug trafficking. Collins has five previous felony convictions, any one of which bars him from possessing a firearm or ammunition under federal law.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Orlando Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Assistant United States Attorney Bruce S. Ambrose.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is another example of ATF’s Frontline Strategy to impact violent crime within our communities.
Ohio Man Indicted for Traveling Across State Lines for the Purpose of Engaging in A Sexual Act with A MinorRead the Press Release
Follow @SDILNewsA federal grand jury sitting in East St. Louis has indicted Nathan D. Maphis, 36, of New Boston, Ohio, charging him with Travel with Intent to Engage in Illicit Sexual Conduct, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. The offense charged in the indictment alleges that on June 24 and 25, 2014, Maphis travelled from the State of Ohio to Effingham County, Illinois, for the purpose of engaging in a sexual act with a person under the age of 18 years.
A federal trial date has not yet been set. If convicted of Travel with Intent to Engage in Illicit Sexual Conduct, Maphis faces a term in prison of up to 30 years; a fine of up to $250,000, and a term of supervised release of not less than five (5) years, up to and including, a lifetime of supervision once he is released.
An indictment is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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.”
The case was investigated by the Madison County Sheriff’s Department, the Federal Bureau of Investigation’s Metro East Cyber Crimes and Analysis Task Force, the Maryville, Illinois, Police Department and the Illinois State Police. The case is assigned to Assistant United States Attorney Ali Summers.
Nevada Woman Sentenced to Probation for Transporting an Undocumented Mexican ToddlerRead the Press Release
ALBUQUERQUE – Serafina Madrid, 35, of Las Vegas, Nev., was sentenced this morning in federal court in Albuquerque to three years of probation for transporting an illegal alien.
Madrid was arrested on Aug. 1, 2013, on a criminal complaint charging her with unlawfully transporting of an illegal alien. On that day, law enforcement officers encountered Madrid at the Greyhound bus station in Albuquerque. At the time of the encounter, Madrid was transporting a 16-month old toddler from San Diego, Cal. to Atlanta, Ga. The toddler was a Mexican national unlawfully in the United States.
Madrid pleaded guilty on May 6, 2014, to a felony information charging her with transporting an illegal alien. In entering her guilty plea, Madrid admitted that she was transporting the child, who was an illegal alien from Mexico, when she was arrested on Aug. 1, 2013. Madrid acknowledged that she had been paid $1200.00 to transport the 16-month old toddler from San Diego, Calif., to Atlanta, Ga., and that she expected additional payment when she delivered the toddler to her mother in Georgia.
This case was investigated by the Albuquerque office of U.S. Customs and Border Enforcement, with assistance from the Albuquerque office of the DEA and the Pueblo of Laguna Tribal Police Department, and was prosecuted by Assistant U.S. Attorneys Lynn W.Y. Wang and Charles L. Barth.
National Leader of “Trinitarios” Gang Sentenced in Manhattan Federal Court to 19 Years in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that LEONIDES SIERRA, a/k/a “Junito” – the former national leader of the “Trinitarios,” a violent street and prison gang comprising primarily individuals of Dominican descent – was sentenced yesterday in Manhattan federal court to 19 years in prison for his role as the leader of a massive, multi-year racketeering conspiracy. Sierra is currently serving 221/2 years to life in prison in New York State as a result of his 1989 conviction of intentional murder. Sierra’s federal sentence will run consecutively to the New York State term of imprisonment.
Manhattan U.S. Attorney Preet Bharara said: “When Sierra created the Trinitarios Gang on Rikers Island in 1992, a dangerous and bloodthirsty organization was born, responsible for overwhelming violence both on the streets of New York and other cities, and inside the prison system. With Sierra’s conviction, the Trinitarios Gang lost its founder and leader. Sierra’s conviction and sentence are capstones to this Office’s five-year effort to dismantle the Trinitarios. The sentence imposed ensures that Sierra will not see the light of day for many years to come. It should also serve to remind members and leaders of other violent gangs that we will continue to work to bring them to justice.”
In imposing sentence, United States District Judge Paul A. Engelmayer told the defendant: “Instead of putting up a stop sign, you gave the Trinitarios a green light to commit violence by your actions. Your actions sent the message to these gang members that retribution, violence, and hits are OK.” Judge Engelmayer told Sierra that he had “no right to decide who lived or who died,” and that his actions were “wrong, destructive to society, and to the Dominican community.”
According to the Indictment, and other documents filed in the case, as well as statements made during the sentencing proceedings:
SIERRA, with two others, created the Trinitarios Gang on Rikers Island in 1992, in order to protect prison inmates of Dominican descent from other competing violent gang members. The Trinitarios quickly morphed into a violent organization both in the prison system and on the streets, as its members began to be released from prison and continued their membership. SIERRA managed and led the Trinitarios while he was an inmate at various New York State prisons, including, at the time of his arrest in this case, Attica Correctional Facility. SIERRA ordered numerous acts of violence (referred to as “green lights” in the gang’s parlance) against other inmates in the New York State prison system, and, in connection with his guilty plea in this case, also admitted that in 2011, he conspired to murder another member of the Trinitarios Gang who was at liberty in the community. Sierra targeted this victim because the victim refused to acknowledge Sierra as the gang’s Supreme Leader. Sierra and his co-conspirators were arrested in this case before their plan could come to fruition.
In his capacity as the gang’s leader, Sierra also ordered the establishment of a Central Committee, which was responsible for conveying Sierra’s orders and messages to the gang’s top leadership on the street, among other things. During the time Sierra served as the gang’s national leader, Trinitarios members operating in the Bronx and Manhattan were responsible for numerous homicides and non-fatal shootings, targeting both other members of the Trinitarios and members of rival gangs. Specifically, this Office has charged members and associates of the Bronx Trinitarios Gang with committing nine homicides between 2005 and 2010, and members and associates of the Manhattan Trinitarios Gang with committing one homicide in 2006.
Since 2009, as part of “Operation Patria” and “Operation Green Haze,” this Office has charged at least 147 members and associates of the Trinitarios Gang.
Mr. Bharara praised the work of the New York City Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, and the New York State Department of Corrections and Community Services.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Nola B. Heller, Micah W.J. Smith, Jessica Ortiz, Sarah Krissoff, Timothy D. Sini, Ryan Poscablo, and Rachel Maimin are in charge of the prosecution.
Michigan Woman Convicted of Criminal ContemptRead the Press Release
A federal jury in Detroit convicted a Commerce Township, Michigan, woman of criminal contempt based on violating an injunction that required her to comply with various legal tax obligations, the Justice Department and Internal Revenue Service (IRS) announced today.
Doreen Hendrickson was convicted of criminal contempt based on her violation of an injunction issued by U.S. District Judge Nancy Edmunds in May 2007. Hendrickson failed to file amended tax returns or repay the tax refunds as ordered by the judge, and filed an additional false tax return for 2008 on which she falsely claimed that wages she earned as a movie extra were not taxable. For more information about the injunction, please see the previously issued press release . She will be sentenced on Nov. 20.
According to court filings and evidence presented at trial, Hendrickson and her husband, Peter Hendrickson, filed federal income tax returns for the years 2002 and 2003 on which they falsely claimed they earned zero wages. Based on these false returns, the IRS issued the Hendricksons more than $20,000 in income tax refunds that they were not entitled to receive. In 2006, the department’s Tax Division sued the Hendricksons to recover these refunds. As part of that case, Judge Edmunds ordered the Hendricksons to file corrected amended tax returns for 2002 and 2003 that reported all of their income, and to repay their fraudulently obtained refunds to the IRS. Judge Edmunds also barred the Hendricksons from filing additional false tax returns.
The Hendricksons’ false 2002 and 2003 income tax returns were the subject of a prior criminal prosecution. In 2009, Hendrickson’s husband, Peter Hendrickson, was convicted of filing multiple false income tax returns, including the 2002 and 2003 returns that he filed jointly with his wife. According to evidence presented at trial, these tax returns were based on the false and frivolous theories that Peter Hendrickson promoted in his book, “Cracking the Code,” and on his website, Lost Horizons. Doreen Hendrickson filed her false 2008 income tax return while her husband was indicted for filing false tax returns.
The case was investigated by special agents of IRS – Criminal Investigation, and prosecuted by Trial Attorneys Melissa S. Siskind, Jeffrey B. Bender and Jeffrey A. McLellan of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found at the division website .
Manhattan U.S. Attorney Files and Settles Lawsuit Against New Rochelle School District for Failure to Evacuate Students with Disabilities During School-Wide Evacuation in Violation of the ADARead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today the filing and settlement of a lawsuit against NEW ROCHELLE SCHOOL DISTRICT (the “District”) for violating Title II of the Americans with Disabilities Act of 1990 (the “ADA”) by failing to evacuate two students with disabilities from the New Rochelle High School during an actual evacuation, as well as drills. The settlement, in the form of a consent decree, was approved yesterday by U.S. District Judge Cathy Seibel.
Manhattan U.S. Attorney Preet Bharara said: “We think of schools as safe havens for all students, and students with disabilities are no exception. The ADA requires that students with disabilities be given the opportunity to participate meaningfully in all programs put in place by their schools – a requirement that applies with particular force to an emergency preparedness program. There is never an excuse for jeopardizing the safety of any child.”
According to the Complaint and Consent Decree filed in Manhattan federal court, the District failed to provide two students with disabilities with “meaningful access” to the school’s emergency preparedness programs when it failed to evacuate them on January 31, 2013, during a school-wide evacuation, after the fire alarm was triggered as a result of a smoke condition in the electrical room of the New Rochelle High School. In addition, the investigation revealed that the District had failed to maintain evacuation plans for students with disabilities and failed to permit them to participate fully in evacuation drills. Title II of the ADA prohibits a public entity from, among other things, excluding individuals with disabilities from, or denying them the benefits of, its services, programs, or activities. To comply with Title II, a public entity must ensure that individuals with disabilities are afforded “meaningful access” to such services, benefits, and activities, including emergency preparedness programs.
In the Consent Decree, NEW ROCHELLE SCHOOL DISTRICT expressly acknowledges “that it failed to evacuate J.F. and A.B. from the New Rochelle High School (‘NRHS’) with the rest of the student body during an evacuation that occurred on January 31, 2013; the District also acknowledges that prior to January 31, 2013, it failed to ensure that J.F. and A.B. were evacuated from NRHS during some evacuation drills conducted for the NRHS student body.”
Under the Consent Decree, the District has agreed to ensure that students with disabilities are able to participate meaningfully in evacuations – whether actual evacuations or drills. The Consent Decree further requires the District to provide ADA training to all District employees, including school administration, aides, security personnel, and teachers who have students with disabilities in their classrooms. In addition, the District must obtain technical assistance from an expert approved by the United States for the purpose of creating and implementing written evacuation plans for students with disabilities. Finally, the District has agreed that upon the request of any student with a disability, it will make reasonable modifications to its policies, practices, and procedures concerning the placement of the student in particular classrooms.
Assistant U.S. Attorney Rebecca C. Martin is in charge of the case.
U.S. v. City School District of New Rochelle Civil Complaint
U.S. v. City School District of New Rochelle Consent DecreeMan Sentenced to Just over 15 Years for Armed Bank Robbery and Use of A Firearm During A Crime of Violence in Madison CountyRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Phillip D. Webb, 33, was sentenced today in United States District Court. Webb had previously pled guilty to a four-count indictment charging him with Armed Bank Robbery, Use and Carry of a Firearm During a Crime of Violence, Possession with Intent to Deliver Cocaine, and Felon in Possession of a Firearm. Webb was sentenced to 181 months in prison, to be followed by 5 years of supervised release, fined $800, and ordered to pay a $400 assessment. Webb was also ordered to pay restitution.
Documents filed in US District Court establish that on June 28, 2011, two women stopped at the Quick Trip station in Madison, Illinois, to buy gasoline. As the driver reentered her vehicle after paying at the pump, Webb slipped into the backseat of her car and pointed a gun at her and her mother. Webb then abducted the two victims, forcing them to drive to a nearby ATM and withdraw money from a bank account. Webb was arrested by the United States Marshals on July 18, 2011, as he fled from an apartment in Collinsville, Illinois. Upon his arrest, Webb was found in possession of two firearms, several rounds of ammunition and 26 grams of crack cocaine which he intended to distribute. Webb was a previously convicted felon, having been convicted of the offense of second degree murder in 2003.
The case was investigated by the Illinois State Police, the Bureau of Alcohol, Tobacco and Firearms, and the Madison Police Department. The case was prosecuted by Assistant United States Attorneys Ali Summers and Donald Boyce.
Man Sentenced to 40 Months for Unlawful Gun PossessionRead the Press Release
POCATELLO - Joseph Raymond Haycock, 59, formerly of Salmon, Idaho, was sentenced yesterday to 40 months in prison for unlawfully possessing a firearm, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Haycock to serve three years of supervised release following his prison term. Haycock pleaded guilty to the charge in April 2014.
According to court records, Haycock possessed a .22 caliber rifle on September 18, 2012, when he was arrested for absconding state probation and failing to register as a sex offender. Haycock is prohibited from possessing firearms due to a 2011 felony conviction for sexual abuse of a minor under the age of sixteen years in Benewah County, Idaho.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Lemhi County Sheriff’s Office. The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Lost City Man Pleads Guilty to Firearm PossessionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that JERRY WAYNE MORRISON, JR., a/k/a, Hootie, age 34, of Lost City, Oklahoma, pled guilty to Felon in Possession of a Firearm, in violation of Title 18, United States Code, Section 922(g)(1).
The charge arose from an investigation by the District 27 District Attorney’s Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The defendant was indicted in November 2013.
The Indictment alleged that on or about November 30, 2012, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, the following firearm, to-wit: one Taurus, model PT709 Slim, 9mm caliber pistol, which had been shipped and transported in interstate commerce.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
The statutory range of punishment is not more than 10 years imprisonment and/or up to a $250,000.00 fine. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Kyle Waters represented the United States.
Local Attorney Pleads Guilty to Multiple Federal Fraud ChargesRead the Press Release
St. Louis, MO – St. Charles County attorney JEFFREY WITT pled guilty to three (3) federal felony charges: falsifying documents to obtain a bank loan secured by a St. Louis County home, which did not actually belong to him; using an associate to impersonate the true home owner at the bank loan closing; and cashing legal client settlement checks without their knowledge.
According to court documents and statements made in court, during September 2013, Witt submitted a loan application in the name of an individual identified in documents as PW, in order to obtain a $100,000 line of credit secured by the PW’s St. Louis area residence. PW, the individual home owner was unaware of Witt’s loan application. Witt provided a female associate with false documentation and identification in PW’s name so the associate could impersonate PW during the loan closing at the bank. Together they were able to obtain the $100,000 bank loan credit line. Witt immediately drew out $60,000 from the credit line, which he deposited into his law firm bank account and then withdrew for personal purposes. Subsequent to the loan closing, PW learned of Witt’s action and confronted him. In order to conceal the scheme, Witt falsely represented to PW that he had cancelled the loan. To convince PW, Witt created a false letter on fake bank letterhead, forged the signature of a bank officer and created a false “Deed of Release,” all of which purportedly released the Deed of Trust on PW’s home securing the fraudulent t loan.
Additionally, as part of his law practice, Witt would enter into settlement discussions on behalf of one and more of his legal clients. Several times, without the knowledge of his clients, Witt settled their legal cases, accepted settlement checks on their behalf and forged their signatures on their settlement checks. He admitted with his plea that he deposited the checks into his law firm bank account and spent those funds on his own personal expenses and business expenses unrelated to those clients without their knowledge. Further, and in order to conceal his scheme, Witt falsely represented to his clients that he had not settled their cases or received settlement checks.
Witt was arrested on the charges by FBI Special Agents on March 7, 2014, as he arrived in New York City from Turkey.
Witt, St. Charles, MO, pled guilty to one felony count of bank fraud, one felony count of aggravated identity theft and one felony count of mail fraud before United States District Judge E. Richard Webber. Sentencing has been set for October 16, 2014.
Bank fraud carries a maximum penalty of 30 years in prison and/or fines up to $1 million, mail fraud carries a maximum of 20 years in prison and/or fines up to $250,000 and aggravated identity theft carries a mandatory 2-year term of imprisonment consecutive to any term of imprisonment on the fraud charges and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
Leader of 30th Street Crew Drug Trafficking Organization Sentenced to 78 Months in JailRead the Press Release
WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, announced today that Qiydaar Miller, age 34, the leader of a Wilmington-based drug organization, known as the “30th Street Crew,” was sentenced in U.S. District Court to 78 months in prison and 4 years supervised release, for conspiracy to distribute heroin, crack cocaine, cocaine, and marijuana, in violation of Title 21, United States Code, Sections 841(a)(1) and 846.
Miller has been incarcerated since June 13, 2013, when he and eight other 30th Street Crew members were arrested and held without bail, on federal drug trafficking charges. In total, fourteen individuals were ultimately indicted on federal drug trafficking charges in connection with this investigation. Of the eight co-defendants listed on Miller’s indictment, which included Albari Malik Johnson, Tamir Collins, Keenan Williams, Walter Thomas, Ibrahim Sesay, Andre Cephas, Harry Coverdale, and Corey Pendergrass, all but Thomas have pleaded guilty to federal drug charges. Tamir Collins, Miller’s brother was sentenced to six years in jail in April 2014. Other co-defendants are now serving jail terms of between two and four years.
According to court documents, following a nearly five month wire-tap investigation, law enforcement identified and dismantled the 30th Street Crew, which was led by Miller and Collins, and which was a dominant drug trafficking organization throughout Wilmington, with their center of operations located in the northside of Wilmington. The 30th Street Crew used a residence at 3000 N. Madison Street, Wilmington – situated just blocks away from P.S. DuPont Middle School – as its headquarters for many years. That house served as a retail center for drug distribution, with a regular influx of customers and sub-distributors arriving to make drug purchases from conspiracy members. The house was also a target of violence, including at least two shootings which occurred outside the residence in November and December 2011.
Law enforcement further determined that Johnson regularly received shipments of heroin from a New York-based source, and then distributed the heroin to Miller and other co-conspirators. Miller ultimately admitted to being responsible for the distribution of at least 700 grams of heroin. Miller was also responsible for the sale of cocaine and crack cocaine – purchasing as much as kilogram of cocaine at a time, which he and his co-conspirators would “break down” into smaller, distribution quantities for further sale.
The Indictment and arrests of these individuals was the product of a long-term investigation into the drug-trafficking organization, led by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Wilmington Police Department, and the State of Delaware Department of Corrections Division of Probation and Parole. Critical support for the investigation and arrests was provided by Delaware State Police, Delaware Division of Gaming Enforcement, New Castle County Police Department, United States Marshals Service, and the United States Department of Agriculture.
Acting United States Attorney David C. Weiss thanked the federal, state, and local law enforcement agencies for their participation in this investigation, and stated, “This investigation dismantled a large-scale, violent drug trafficking organization that had heretofore operated with near-impunity on the streets of Wilmington.”“Street violence has become a normal way of life for many people living in Wilmington. These career criminals are holding communities hostage, and gang members think they can keep beating the system. But not anymore,” said Steve Vogt, Special Agent in Charge of the FBI Baltimore Division which covers Delaware. “This case and others to follow will show these violent offenders that we are not going away.”
The case was being prosecuted by Assistant United States Attorneys Ilana Eisenstein and Jamie M. McCall, District of Delaware. For further information, please contact AUSA McCall at 302-573-6079 or AUSA Eisenstein at 302-573-6082.Keithville Man Sentenced to 60 Months in Prison for Theft of Firearms from WarehouseRead the Press Release
SHREVEPORT, La. –A Keithville man was sentenced Thursday to 60 months in prison and three years of supervised release for his part in stealing firearms from a Shreveport warehouse, U.S. Attorney Stephanie A. Finley announced today.
James Minor Jr., 44, of Keithville, La., was sentenced Thursday by U.S. District Judge S. Maurice Hicks Jr. to one count of conspiracy to steal firearms. According to evidence presented at the guilty plea on March 13, 2014, Minor conspired with David McNeil, Cameron Johnson, and Luther Williams Jr. to steal 63 Colt M4 Carbine rifles from a shipping warehouse in Shreveport on October 13, 2013. Johnson worked as a guard at the warehouse and allowed Minor and the other defendants inside. More than 55 rounds of ammunition were later found at McNeil’s residence after a search warrant was executed.
For their roles in the case, Williams, 23, of Shreveport, was sentenced on June 30, 2014, to 33 months in prison; Johnson, 22, of Keithville, was sentenced to 37 months in prison; and McNeil, 31, of Keithville, was sentenced to 72 months in prison. They were all ordered to serve three years of supervised release. Minor, Johnson, and Williams were also ordered to pay restitution of $30,062 jointly and severally.This case is part of Project Safe Neighborhoods. Project Safe Neighborhoods is a Department of Justice initiative designed to reduce firearm crimes by removing dangerous and persistent felons from the community and promote firearm safety. Project Safe Neighborhoods attorneys prosecute a variety of federal firearms violations listed in Titles 18 and 26 of the U.S. Code, including illegal possession of firearms and commission of crimes with firearms.
The ATF, Caddo Parish Sheriff’s Office and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney James G. Cowles Jr. prosecuted the case.
Justice Department Obtains $80,000 Settlement in Housing Discrimination Lawsuit Against California LandlordRead the Press Release
The Justice Department today announced an agreement with the owners and operators of Woodland Garden Apartments in Fremont, California, to settle allegations of discrimination against families with children. Under the consent order, which must still be approved by the U.S. District Court for the Northern District of California, the defendants are required to pay $77,500 to the victims of their discrimination and an additional $2,500 to the government as a civil penalty. The settlement resolves a complaint filed by the department on Oct. 25, 2013.
The lawsuit alleged that the apartment complex maintained rules that discriminated against families with children in violation of the Fair Housing Act. Specifically, the lawsuit challenged a rule that prohibited children from playing outside in the common grassy areas of the complex and provided that families would be evicted if they violated this rule. The lawsuit also alleged that the actions of the defendants constituted a pattern or practice of discrimination.
The lawsuit arose as a result of complaints filed with the U.S. Department of Housing and Urban Development (HUD) by five families who lived at Woodland Garden Apartments and by Project Sentinel, a fair housing organization operating in Northern California. After an investigation of the complaints, HUD issued a charge of discrimination and the complainants were referred to the department.
“Federal law guarantees families with children the right to equal access to housing, including full access to their homes’ amenities and facilities,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “Settlements such as this one help ensure that all families can enjoy that right.”
“An apartment complex may not impose conditions on families with children that they do not impose on other residents,” said HUD’s Assistant Secretary for Fair Housing and Equal Opportunity Gustavo Velasquez . “HUD and DOJ remain committed to enforcing fair housing laws that ensure all people share the same rights to use and enjoy their homes.”
In addition to monetary payments, the consent order requires defendants to implement a nondiscrimination policy, establish new enforcement procedures for rule violations and undergo training on the Fair Housing Act.
Fighting illegal housing discrimination is a top priority of the department. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.
More information about the Civil Rights Division and the laws it enforces is available at the division's website . Persons who believe they have experienced or witnessed unlawful housing discrimination may call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected] , or contact HUD at 1-800-669-9777. More information about the Fair Housing Act can also be found at the department website or the HUD website .
Justice Department Obtains $80,000 Settlement in Housing Discrimination Lawsuit Against California LandlordRead the Press Release
WASHINGTON – The Justice Department today announced an agreement with the owners and operators of Woodland Garden Apartments in Fremont, California, to settle allegations of discrimination against families with children. Under the consent order, which must still be approved by the U.S. District Court for the Northern District of California, the defendants are required to pay $77,500 to the victims of their discrimination and an additional $2,500 to the government as a civil penalty. The settlement resolves a complaint filed by the department on Oct. 25, 2013.
The lawsuit alleged that the apartment complex maintained rules that discriminated against families with children in violation of the Fair Housing Act. Specifically, the lawsuit challenged a rule that prohibited children from playing outside in the common grassy areas of the complex and provided that families would be evicted if they violated this rule. The lawsuit also alleged that the actions of the defendants constituted a pattern or practice of discrimination.
The lawsuit arose as a result of complaints filed with the U.S. Department of Housing and Urban Development (HUD) by five families who lived at Woodland Garden Apartments and by Project Sentinel, a fair housing organization operating in Northern California. After an investigation of the complaints, HUD issued a charge of discrimination and the complainants were referred to the department.
“Federal law guarantees families with children the right to equal access to housing, including full access to their homes’ amenities and facilities,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “Settlements such as this one help ensure that all families can enjoy that right.”
“An apartment complex may not impose conditions on families with children that they do not impose on other residents,” said HUD’s Assistant Secretary for Fair Housing and Equal Opportunity Gustavo Velasquez. “HUD and DOJ remain committed to enforcing fair housing laws that ensure all people share the same rights to use and enjoy their homes.”
In addition to monetary payments, the consent order requires defendants to implement a nondiscrimination policy, establish new enforcement procedures for rule violations and undergo training on the Fair Housing Act.
Fighting illegal housing discrimination is a top priority of the department. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.
More information about the Civil Rights Division and the laws it enforces is available at the division's website. Persons who believe they have experienced or witnessed unlawful housing discrimination may call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777. More information about the Fair Housing Act can also be found at the department website or the HUD website.
Justice Department Announces Proposed Amendment to Americans with Disabilities Act Regulations to Expand Access to Movie Theaters for Individuals with Hearing and Vision DisabilitiesRead the Press Release
The Justice Department announced today that Attorney General Eric Holder has signed a Notice of Proposed Rulemaking (NPRM) to amend the Title III regulation for the Americans with Disabilities Act (ADA) to require movie theaters to provide closed movie captioning and audio description in order to give persons with hearing and vision disabilities access to movies.
"This proposed rule will allow all Americans, including those with disabilities, to fully participate in the moviegoing experience. With this proposal, the Justice Department is taking an important step to ensure consistent access for people with vision and hearing disabilities," said Attorney General Eric Holder. "Twenty-four years after its passage, the Americans with Disabilities Act remains a critical tool for extending the promise of opportunity and inclusion for everyone in this country."
Closed movie captioning refers to captions that are delivered to the patron’s seat and are visible only to that patron. Audio description enables individuals who are blind or have low vision to enjoy movies by providing a spoken narration of key visual elements of a movie, such as actions, settings, facial expressions, costumes and scene changes. Audio description is transmitted to a user’s wireless headset. The department is proposing to provide a consistent nationwide standard for movie theaters to exhibit movies that are available with closed movie captioning and audio description for all showings. The department is also proposing to require theaters to provide a specific number of closed captioning and audio description devices. Theaters need not comply with the proposed rule if doing so would cause an undue burden or fundamental alteration. The department is not proposing to require movie theaters to add captions or audio description to movies that are not already produced and distributed with these features.
The department is proposing a six-month compliance date for movie theaters’ digital movie screens and is seeking public comment on whether it should adopt a four-year compliance date for movie theaters’ analog movie screens or should defer rulemaking on analog screens until a later date.
“As we celebrate the 24th anniversary of the Americans with Disabilities Act on Saturday, we are reminded that people with disabilities still do not have full access to all aspects of American cultural life,” said Jocelyn Samuels, Acting Assistant Attorney General for Civil Rights. “Although some movie theaters are making strides towards meeting their ADA obligations, there is a good deal of inconsistency among theaters across the United States. This proposed rule is intended to ensure that, regardless of where a person with a hearing or vision disability lives, that person will be able to attend movies with their friends and family and fully enjoy this important social and cultural activity.”
On July 26, 2010, the department published an Advance Notice of Proposed Rulemaking (ANPRM) asking how requirements for movie captions and audio description should be implemented. The ANPRM sought public comment regarding the type of accessibility requirements for captioning and video [audio] description the department should consider, particularly in light of the industry’s conversion to digital cinema technology. The department received more than a thousand comments in response to the ANPRM and these comments were taken into consideration when developing the proposed rule.
The department intends to publish the proposed rule in the Federal Register in the near future, and public comments on the NPRM will be due 60 days from the date the rule is published.
The NPRM is available for review on the ADA website .
Those interested in finding out more about the ADA may call the department’s toll-free ADA Information Line at 800-514-0301 (TTY 800-514-0383) or visit the ADA website.
Judge Sentences Texan to 11 Years for Cocaine Trafficking SchemeRead the Press Release
PITTSBURGH - A Texas resident has been sentenced in federal court to 135 months incarceration and five years supervised release on his conviction of violating the federal drug laws, United States Attorney David J. Hickton announced today.
United States District Judge Donetta W. Ambrose imposed the sentence on Dominique Jackson, 27, formerly of Denton, Texas, and currently incarcerated.
According to information presented to the court, from in and around July 2010 and continuing until Oct. 7, 2010, Jackson conspired with other individuals to distribute five kilograms or more of a mixture and substance containing a detectable amount of cocaine.
Assistant United States Attorney Amy L. Johnston prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Allegheny County Sheriff's Office, the McKeesport Police Department, the Clairton Police Department, the Allegheny County Housing Authority Police Department, the Pennsylvania State Police, the Allegheny County Police Department, and the Munhall Police Department for the investigation leading to the successful prosecution of Dominique Jackson.
Jamaican Man Sentenced for Identity Fraud ConspiracyRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron yesterday sentenced Richard Anthony Davis (43, Jamaica) to three years and six months in federal prison for conspiracy to obtain fraudulent Florida driver licenses, false claim to U.S. citizenship, and aggravated identity theft. The Court also ordered Davis to forfeit $2,926 in cash, which is traceable to proceeds of the offenses. Davis pleaded guilty to these offenses on April 30, 2014.
According to court documents, Davis conspired with a Customer Service Representative (CSR) at the Osceola County Tax Collector’s Office to issue Florida driver licenses (DL) and identification cards (ID) to over 280 persons based upon fraudulent and fraudulently-obtained U.S. Virgin Islands identity documents. Those documents included genuine birth certificates, social security cards, and fraudulent U.S. Virgin Islands identifications or driver licenses, with corresponding photographs. The CSR, Walter Brown, previously pleaded guilty and has been sentenced to 2 years and a day in prison.
Davis escorted his customers to the Osceola Tax Collector’s Office on days prearranged with Brown. Some of his customers were illegal aliens, previously deported aliens, convicted felons, and others with unknown status. The customers would go directly to Brown’s window with the supporting documentation that Davis gave them for their license application. Brown would then issue the customers Florida DL/IDs. Davis charged his customers $7,500 each and he paid Brown between $300 and $700 per Florida DL/ID.
The Osceola County Tax Collector’s Office reported Brown to law enforcement after internal controls revealed suspicious activity involving his issuance of Florida State Driver Licenses and identification cards. The Tax Collector’s Office cooperated fully in the investigation and Brown was terminated from his employment. Davis is a citizen and national of Jamaica. He last legally entered the United States in 1991, but overstayed his legal residence and never departed the United States.
Beginning in 2000, Davis falsely represented himself to be a United States citizen under five different names.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It was prosecuted by former Special Assistant U.S. Attorney Myrna A. Mesa and Assistant U.S. Attorney Bruce S. Ambrose.
Husband of Former Country Club Hills Police Chiefsentenced for His Role in $1.25 Million Grant Fraud SchemeRead the Press Release
SPRINGFIELD, Ill. – Ronald W. Evans, Jr., husband of former Country Club Hills police chief Regina R. Evans, was sentenced today for his role in a fraud scheme that misused state grant money awarded in 2009 to We Are Our Brother’s Keeper, a not-for-profit program owned and operated by the couple. U.S. District Judge Sue E. Myerscough ordered that Evans serve 12 months in federal prison, followed by six months of home confinement and two years of supervised release. Evans, 47, was allowed to remain on bond and was ordered to self-report to the federal Bureau of Prisons on Sept. 8, 2014. Evans was also ordered to pay restitution, joint and severally, with his wife, in the amount of $917,194, to the Illinois Department of Commerce and Economic Opportunity.
Ron Evans pled guilty on Aug. 1, 2013, to one count each of money laundering and wire fraud. His wife, Regina Evans, pled guilty on June 17, 2013, to charges of fraud, and was sentenced on May 1, 2014, to serve five years in prison and to pay restitution. In a separate case, Regina Evans also pled guilty and was sentenced for obstruction of justice, witness tampering and conspiracy to obstruct justice and witness tampering.
According to court documents and statements, a $1,250,000 state grant awarded to Ron and Regina Evans on behalf of We Are Our Brother’s Keeper was misused for the couple’s personal benefit, their family members, friends, and associates, and for repayment of indebtedness, and little, if any, of the training proposed in the grant agreement was ever completed. The grant agreement provided for an estimated 40 participants to receive bricklaying and electrical pre-apprenticeship training and GED preparation, at the Regal Theater, another entity owned by the Evanses.
Assistant U.S. Attorney Timothy A. Bass prosecuted the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois. The investigation was conducted by participating agencies of the Central District of Illinois’ U.S. Attorney’s Office’s Public Corruption Task Force including the U.S. Postal Inspection Service, Chicago Division; the Internal Revenue Service Criminal Investigations; and, the Illinois Secretary of State Office of Inspector General. Individuals who wish to provide information to law enforcement regarding matters of public corruption are urged to call the U.S. Attorney’s Office at 217-492-4450.
Haskell Man Sentenced to 35 Months for Failure to Register as Sex OffenderRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that ALBERT PRESTON ALEXANDER, a/k/a Alexander Preston, a/k/a Albert Shadon, a/k/a Preston Alexander, a/k/a Albert Reton Alexander, a/k/a Albert Preton Alexander, age 42, of Haskell, Oklahoma, was sentenced to 35 months imprisonment, followed by 5 years of supervised release for Failure to Register as Sex Offender, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3).
The charge arose from an investigation by the Muskogee County Sheriff’s Department and the United States Marshal’s Service. ALEXANDER was indicted in September 2013 and pled guilty in December 2013.
The Indictment alleged that from in or about May, 2013 until on or about September 4, 2013, in the Eastern District of Oklahoma, and elsewhere, ALEXANDER, an individual required to register as a Sex Offender under the Sex Offender Registration and Notification Act, traveled in interstate commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
ALEXANDER has a felony conviction from the State of California, Riverside County, for the offense of Induce Intercourse.
The Honorable James H. Payne, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Edward Snow represented the United States.
Gulfport Man Sentenced to 24 Months in Prison for Aggravated Identity Theft in Connection with False Income Tax ReturnsRead the Press Release
Gulfport, Miss. – Richard Terrell Jasper, 39, of Gulfport, was sentenced today in U.S. District Court for aggravated identity theft, announced U.S. Attorney Gregory K. Davis and Special Agent in Charge Gabriel L. Grchan with IRS Criminal Investigation.
Jasper pled guilty on May 5, 2014, to one count of aggravated identity theft, which charged that he knowingly used, without lawful authority, the means of identification of another person, that is, the name and social security number of another person, during and in relation to the felony of theft of government funds. The theft of government funds involved numerous income tax refund checks that the defendant obtained and deposited into his bank accounts. The refunds were issued based on fraudulent income tax returns filed using unknowing victims’ names and social security numbers.
Jasper was sentenced by United States District Judge Sul Ozerden to a term of imprisonment of 24 months, to be followed by one year of supervised release, and a $10,000 fine. He was also ordered to pay restitution to the IRS in the amount of $43,215.
This case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Ruth Morgan.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:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Georgia Woman Convicted of Involvement in Counterfeit Check SchemeRead the Press Release
RICHMOND, Va. – Rasheeda McConnell, 33, of Atlanta, Georgia, was convicted yesterday by a federal jury of conspiring to commit bank fraud and six counts of bank fraud.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Gary Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Kathy A. Michalko, Special Agent in Charge of the United States Secret Service’s Washington Field Office, made the announcement after the verdict was accepted by U.S. District Judge John A. Gibney.
McConnell was indicted on March 4, 2014, by a federal grand jury on conspiracy and bank fraud charges. According to court records and evidence at trial, McConnell was part of a group that stole business checks from commercial mailboxes and used them to make counterfeit checks. The group then recruited people to cash the checks from areas where the homeless or unemployed would congregate. McConnell drove conspirators for several of these transactions and also attempted to recruit cashers via email and social media.
McConnell faces a maximum penalty of 30 years in prison on each count of conviction when she is sentenced on October 27, 2014. Five co-defendants previously pled guilty in this case and are awaiting sentencing. Christopher Eugene Pope is scheduled to be sentenced on August 15, 2014; Devante Carson is scheduled to be sentenced on August 27, 2014; Kevin Lavon Smith, and Rodney Keith Barnes, II, are scheduled to be sentenced on September 8, 2014; and Brandon Jermaine Johnson is scheduled to be sentenced on October 17, 2014. Another co-defendant, Damion Latoras Foster, remains at large.
This case was investigated by the United States Postal Inspection Service, United States Secret Service, and Chesterfield County Police Department as members of the Metro-Richmond Identity Theft Task Force. Other member agencies of the Task Force include: the Bureau of Diplomatic Security, the U.S. Department of State, Richmond Police Department, and Henrico County Division of Police. Prosecutions for the Task Force are handled by the United States Attorney’s Office and the Office of the Attorney General for the Commonwealth of Virginia. Virginia Assistant Attorney General and Special Assistant U.S. Attorney Charles A. Quagliato and Assistant U.S. Attorney Michael C. Moore are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-28.
French Citizen Sentenced for Obstructing a Criminal Investigation into Alleged Bribes Paid to Win Mining Rights in GuineaRead the Press Release
Frederic Cilins, a 51-year old French citizen, was sentenced today in the Southern District of New York to 24 months in prison for obstructing a federal criminal investigation into alleged bribes to obtain mining concessions in the Republic of Guinea.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Preet Bharara of the Southern District of New York and Assistant Director in Charge George Venizelos of the FBI’s New York Field Office made the announcement. The sentence was imposed by U.S. District Court Judge William H. Pauley III.
“Cilins offered to bribe a witness in an FCPA investigation to stop the witness from talking to the FBI,” said Assistant Attorney General Caldwell. “Today’s sentence holds Cilins accountable for his effort to undermine the integrity of our justice system, and sends a message that those who interfere with federal investigations will be prosecuted and sent to prison.”
“Frederic Cilins went to great lengths to thwart a Manhattan federal grand jury’s investigation into an alleged bribery scheme in the Republic of Guinea,” said U.S. Attorney Bharara. “In an effort to prevent the federal authorities from learning the truth, Cilins paid a witness for her silence and to destroy key documents. Today, Cilins learned that no one can manipulate justice.”
“Cilins obstructed the efforts of the FBI during the course of this investigation,” said Director in Charge Venizelos. “His guilty plea and sentence demonstrate our shared commitment with the department’s Criminal Division and U.S. Attorney’s Office to hold accountable those who seek to interfere with the administration of justice. This case should be a reminder to all those who try to circumvent the efforts of a law enforcement investigation: the original crime and the cover-up both lend themselves to prosecution.”
According to court documents, Cilins obstructed an ongoing federal investigation concerning potential violations of the Foreign Corrupt Practices Act (FCPA) and other crimes. Federal law enforcement was investigating whether a particular mining company with which Cilins was affiliated paid bribes to officials of a former governmental regime in the Republic of Guinea to obtain and retain valuable mining concessions in the Republic of Guinea’s Simandou region. During monitored and recorded phone calls and face-to-face meetings, Cilins agreed to pay substantial sums of money to induce a witness to the alleged bribery scheme to leave the United States to avoid questioning by the FBI, as well as to give documents to Cilins for destruction that had been requested by the FBI as part of the investigation. Cilins also sought to induce the witness to sign an affidavit containing false statements regarding matters under investigation by the grand jury. That witness was the former wife of a now-deceased Guinean government official who held an office in Guinea that allowed him to influence the award of mining concessions.
Cilins pleaded guilty on March 10, 2014 to a one-count superseding information charging him with obstruction of a federal investigation. In addition to his sentence, he was ordered to pay a fine of $75,000 and forfeit $20,000.
The case was investigated by the FBI. The case is being prosecuted by Trial Attorney Tarek Helou of the Criminal Division’s Fraud Section and Assistant United States Attorney Elisha J. Kobre of the Southern District of New York. The Criminal Division’s Office of International Affairs and Office of Enforcement Operations provided valuable assistance in the investigation.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa .French Citizen Sentenced in Manhattan Federal Court to 24 Months in Prison for Obstructing A Criminal Investigation of Alleged Bribes Paid to Secure Mining Rights in GuineaRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Leslie R. Caldwell, the Assistant Attorney General for the U.S. Department of Justice’s Criminal Division, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that FREDERIC CILINS, a French citizen, was sentenced today to 24 months in prison for obstructing a federal criminal investigation of alleged bribes paid to secure valuable mining rights in the Republic of Guinea. CILINS pled guilty to one count of obstructing a criminal investigation in March 2014 before U.S. District Judge William H. Pauley, III, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Frederic Cilins went to great lengths to thwart a Manhattan federal grand jury’s investigation into an alleged bribery scheme in the Republic of Guinea. In an effort to prevent the federal authorities from learning the truth, Cilins paid a witness for her silence and to destroy key documents. Today, Cilins learned that no one can manipulate justice.”
Assistant Attorney General Leslie R. Caldwell said: “Cilins offered to bribe a witness in an FCPA investigation to stop the witness from talking to the FBI. Today’s sentence holds Cilins accountable for his effort to undermine the integrity of our justice system, and sends a message that those who interfere with federal investigations will be prosecuted and sent to prison.”
FBI Assistant Director-in-Charge George Venizelos: “Cilins obstructed the efforts of the FBI during the course of this investigation. His guilty plea and sentence demonstrate our shared commitment with the U.S. Attorney’s Office to hold accountable those who seek to interfere with the administration of justice. This case should be a reminder to all those who try to circumvent the efforts of a law enforcement investigation: the original crime and the cover-up both lend themselves to prosecution.”
According to the superseding information and other documents filed in Manhattan federal court, as well as statements made at today’s sentencing proceeding and at CILINS’s guilty plea:
CILINS endeavored to obstruct an investigation being conducted by a federal grand jury sitting in the Southern District of New York into potential violations of the Foreign Corrupt Practices Act (“FCPA”) and money laundering. The investigation related to allegations that a mining company with which CILINS was affiliated paid bribes to officials of a former governmental regime of the Republic of Guinea to win valuable mining concessions in the Simandou region of Guinea. During monitored and recorded phone calls and face-to-face meetings, CILINS agreed to pay substantial sums of money to induce a witness to, among other things, destroy and turn over to CILINS for destruction documents related to the bribery allegations. CILINS did so knowing that those documents were being sought by the FBI and were to be produced before a federal grand jury. He also sought to induce the witness to sign an affidavit containing false statements regarding matters under investigation by the grand jury, and tried to get the witness to leave the United States to avoid being questioned by the FBI about these allegations.
In addition to the prison sentence, CILINS, 51, a resident of France, was ordered to pay a fine of $75,000 and to forfeit $20,000.
Mr. Bharara praised the outstanding efforts of FBI in the investigation, which he noted is ongoing. He also thanked the Justice Department’s Office of International Affairs and Office of Enforcement Operations for their assistance in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Elisha J. Kobre and Trial Attorney Tarek Helou of the Fraud Section of the Criminal Division are in charge of the prosecution.
Four Eastern Idaho Men Arrested on Gun and Drug Dealing ChargesRead the Press Release
POCATELLO - Keith Laudric Finn, 46, of Idaho Falls, Idaho, Sergio Garcia, 25, of Rigby, Idaho, Fernando Montiel, 52, of St. Anthony, Idaho, and Juan Carlos Nunez-Mascareno, 36, of Rexburg, Idaho, were arrested this week on drug and gun related charges, U.S. Attorney Wendy J. Olson announced. An arrest warrant is outstanding for Uriel Garcia, 29, of Sugar City, Idaho. Federal indictments were filed in United States District Court in Boise on July 9, 2014, and in Pocatello on July 22, 2014.
One indictment alleges that Finn, previously convicted in Bonneville County, Idaho, of unlawful possession of a weapon by a convicted felon, unlawfully possessed three handguns and distributed methamphetamine three times between January and May 2014.
The second indictment alleges that Sergio and Uriel Garcia conspired to distribute methamphetamine and that Sergio Garcia distributed methamphetamine six times between September 4 and October 23, 2013, once with the assistance of Uriel Garcia.
A third indictment alleges that Montiel distributed methamphetamine on May 15 and June 12, 2014.
The fourth indictment alleges that Nunez-Mascareno distributed methamphetamine six times between October 2013 and January 2014.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Bonneville County Sheriff’s Office, the Fremont County Sheriff’s Office, the Madison County Sheriff’s Office, and the Department of Homeland Security Investigations.
The maximum penalty upon convictions for conspiracy to distribute and distribution of methamphetamine is life in prison and a $10,000,000 maximum fine. The maximum penalty upon a conviction for unlawful possession of a firearm is ten years in prison and a $250,000 fine.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho. The case was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration, in conjunction with, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Canyon County Narcotics Unit, Meridian Police Department, Ada County Sheriff’s Office, Idaho State Police, and the Mini-Cassia Drug Task Force. Other federal agencies participating in the OCDETF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Four Charged in NFL-Related Securities Fraud Scheme Targeting Senior CitizensRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced that Peter D. Kirschner, 49, of Delray Beach, Stuart R. Rubens, 61, of North Miami, Dean R. Baker, 34, of Coral Springs, and Bret A. Grove, 35, of Delray Beach, were charged with conspiracy to commit mail fraud and substantive mail fraud. The four men are charged for allegedly operating call rooms targeting senior citizens and tricking them into purchasing $2.4 million in stock. U.S. Attorney Wifredo A. Ferrer stated, “Securities fraud jeopardizes the well-being of our citizens. The defendants in this case are alleged to have raised approximately $2.4 million by targeting the elderly and representing that they had technology that was about to be used by the NFL. In truth, there was no such arrangement. Today’s charges are the first step in holding them accountable for robbing these elderly folks of their hard-earned savings for their own personal gain.”
“Those charged today materially misrepresented investments to a vulnerable part of our population,” said George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office. “The FBI will continue to prioritize investigations of investment fraud perpetrators who target the elderly.”
According to the indictment and related Securities and Exchange Commission (SEC) civil complaints, the defendants pressured seniors and other investors into purchasing stock in Thought Development Inc. (TDI), a Miami Beach-based company that claimed its signature invention generated a green laser line on the football field visible in the stadium to players, fans as well as on television. TDI represented that use of its technology would decrease the time used by officials to determine first downs, freeing up broadcast time that could then be sold to television advertisers. The defendants raised approximately $2.4 million through the use of call rooms that targeted more than 200 investors throughout the nation, who were told that an initial public offering (IPO) in TDI was imminent and that their money would be safe and used to develop the ground-breaking technology. Instead, the indictment alleges that the IPO was not forthcoming as promised, and at least 50 percent of the offering proceeds were retained by the defendants or paid to sales agents through undisclosed, exorbitant commissions and fees. The defendants also lured investors by misrepresenting that TDI’s technology was about to be used by the NFL. One investor even made a second $75,000 investment on top of an initial $2,500 investment after being told that NFL Commissioner Roger Goodell purchased TDI’s technology for use in the 2013 Super Bowl. In fact, there was no such arrangement. The defendants also neglected to tell investors the TDI laser technology posed a potential risk of blindness to players on the football field.
The SEC recently announced similar civil charges against Baker and Grove, filed today in federal district court in Miami. This brings to six the number of individuals charged criminally with this scheme. The U.S. Attorney for the Central District of California charged Daniel Baker and Demosthenes Dritsas with mail fraud stemming from this investigation, both of whom recently pled guilty.
Mr. Ferrer commended the investigative efforts of the FBI and the SEC. This case is being prosecuted by Assistant U.S. Attorney Roger Cruz.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Washington State Man Sentenced to Twenty Years in Prison for String of Bank RobberiesRead the Press Release
Follow @SDILNewsA former resident of Spokane, Washington, Carl Kieffer, 49, was sentenced in federal district court on July 25, 2014, for a total of seven bank robberies, three of which were charged by Information or Indictment, and four of which were considered relevant conduct, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The three charged bank robberies were of the Bank of O’Fallon in O’Fallon, Illinois, on October 15, 2013 (Case No. 13-30251-MJR); the Lusk State Bank in Lusk, Wyoming, in the District of Wyoming, on August 26, 2013 (Case No. 14-30051-MJR); and the Fifth Third Bank in Charlotte, Michigan, in the Western District of Missouri, on October 9, 2013 (Case No. 14-30052-MJR). These bank robberies were charged in separate cases but later consolidated into a single proceeding.
The four bank robberies that were not charged but were considered relevant conduct in the ultimate determination of the sentence were the Chase Bank, in Novi, Michigan, on September 5, 2013, the New Carlisle Federal Savings Bank, in Tipp City, Ohio, on September 13, 2013, the Bank and Trust of Farmersville, Farmersville, Illinois, on September 16, 2013, and the Huntington National Bank, in Bolivar, Ohio, on October 3, 2013.
Evidence at sentencing revealed that Kieffer lied to both an O’Fallon Detective and FBI agents when he told them that he was dying from cancer, and that was why he began robbing the banks – so that he could enjoy the rest of his life, spending his money on hotels, women and food. Medical records confirmed that while Kieffer was in poor health, he did not have any terminal illnesses.
Before imposing sentence, the Honorable Michael J. Reagan noted Kieffer’s extremely lengthy criminal history, as well as the fact that Kieffer had been incarcerated approximately 30 of the 49 years of his life. Judge Reagan noted that Kieffer was “one of those rare individuals who can’t function in a civilized society because he can’t conform his behavior” to society’s norms. Judge Reagan noted that the evidence of these crimes, as well as the evidence of Kieffer’s past criminal behavior, and his utter lack of remorse for the tellers who were the victims of his robberies, support a finding that Kieffer is likely to recidivate. Judge Reagan therefore imposed a total sentence of 240 months in federal prison for these crimes. Judge Reagan ordered that this sentence be followed by a three year term of supervised release and that Kieffer pay a total special assessment due of $300. Judge Reagan also ordered Keiffer to pay to each of the banks who did not receive all of their proceeds back. Specifically, he ordered mandatory restitution of $7,015 to Lusk State Bank and $3,600 to Fifth Third Bank. He further ordered discretionary restitution of $8,000 to Chase Bank, $1,950 to New Carlisle Federal Savings Bank, $8,480 to Bank and Trust of Farmersville, and $2,800 to Huntington National Bank. The discretionary restitution is imposed as a term of Kieffer’s supervised release.
The Bank of O’Fallon robbery in O’Fallon, Illinois, was investigated by the O’Fallon Police Department, the Belleville Police Department, the Swansea Police Department, the Fairview Heights Police Department, the Shiloh Police Department, the St. Clair County Sheriff’s Department, the Illinois State Police, and the Federal Bureau of Investigation. The Lusk State Bank robbery, in Lusk, Wyoming, was investigated by the Lusk Police Department, the Wyoming Office of the Attorney General, Division of Criminal Investigation and the Federal Bureau of Investigation. The Fifth Third Bank robbery in Charlotte, Michigan, was investigated by the Charlotte Police Department, the Michigan State Police, the Eaton County Prosecuting Attorney’s Office, and the Federal Bureau of Investigation. The cases were assigned to Assistant United States Attorney Angela Scott.
Former Upper Peninsula Resident Charged Federally for Sexual Abuse of A MinorRead the Press Release
MARQUETTE, MICHIGAN – U.S. Attorney Patrick Miles announced today that a federal grand jury has charged Tommy Alan Cain, 61, with five counts of Sexual Abuse by Threat, one count of Abusive Sexual Contact by Threat, and six counts of Sexual Abuse of a Minor. The indictment alleges Cain, formerly from Kincheloe, engaged in sexual acts with a minor victim over a four-year period beginning in 2007 on trust lands of the Sault Ste. Marie Tribe of Chippewa Indians. The Sexual Abuse by Threat counts each carry a maximum sentence of life. The remaining counts carry maximum sentences of three years and fifteen years, respectively.
Cain was arrested yesterday in Battle Creek. After his initial appearance in federal court, he was remanded to the custody of the U.S. Marshal pending a hearing next week on whether he should be released on bond or detained pending trial.
The charges are the result of an investigation conducted by the Sault Ste. Marie Tribal Police and the Marquette office of the Federal Bureau of Investigation (FBI). Assistant U.S. Attorney Hannah N. Bobee is prosecuting the case.
Investigation of this matter continues. Anyone with information regarding this investigation is encouraged to call the FBI or local law enforcement.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
END
Former U.S. House of Representatives Employee Pleads Guilty to Theft of Government PropertyRead the Press Release
Brian Prokes, 28, a former office manager in the U.S. House of Representatives, pleaded guilty today for causing the House of Representatives to pay more than $19,000 in excess salary and unauthorized travel expenses, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
According to court documents, Prokes worked as the office manager for a U.S. Congressman. Prokes’s responsibilities included transmitting salary and bonus information to the House of Representatives’ Office of Payroll and Benefits in order to adjust the pay of employees in the Congressman’s office. Prokes admitted that, between April 2012 and March 2013, he submitted unauthorized paperwork to the Office of Payroll and Benefits to pay himself larger salary and bonus than he had been approved to receive.
In addition, Prokes admitted that, between February 2012 and December 2012, he charged unauthorized, personal travel expenses for himself and an acquaintance to a government credit card used by the Congressman’s office. The excess salary payments and unauthorized travel expenses amounted to more than $19,000.
Prokes, of Atlanta, Georgia, is scheduled to be sentenced on Oct. 14, 2014, before U.S. District Judge Rudolph Contreras in the District of Columbia.
This case was investigated by the FBI. This case is being prosecuted by Trial Attorneys Kevin O. Driscoll and Sean F. Mulryne of the Criminal Division’s Public Integrity Section.Former School Teacher Sentenced to More Than Eight Years in Prison on Child Pornography ChargesRead the Press Release
OAKLAND – Russell Patrick Pfiester was sentenced yesterday to 97 months in prison for receipt of child pornography, announced United States Attorney Melinda Haag and Nick Annan, Acting Special Agent in Charge for U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in San Francisco.
Pfiester pleaded guilty on Feb. 6, 2014, to receipt of child pornography. According to the plea agreement, Pfiester admitted to receiving at least 100 videos through the Internet using a peer-to-peer file sharing network. The videos showed children, including prepubescent children, engaged in sexually explicit conduct, with some videos depicting sadomasochistic conduct.
Pfiester, 44, formerly of Fremont, Calif., was indicted by a federal grand jury on May 9, 2013. He was charged with receiving and possessing child pornography.
The sentence was handed down by the Honorable Yvonne Gonzalez Rogers, United States District Court Judge, in Oakland. In rejecting Pfiester’s request for a lower sentence, Judge Gonzalez Rogers stressed the need to protect the public and noted, among other things, Pfiester’s previous employment as a school teacher. Judge Gonzalez Rogers also sentenced the defendant to a 10-year period of supervised release, during which time, Pfiester will be prohibited from being near any location where children are likely to gather. The defendant has been in custody since his Feb. 6, 2014, guilty plea.
Andrew Huang is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Vanessa Quant. The prosecution is the result of an investigation by HSI.
(Pfiester indictment )
Former Princeton, N.J., Youth Soccer Coach Admits Possessing Images of Sexually Exploited ChildrenRead the Press Release
TRENTON, N.J. – A former Princeton, New Jersey, youth soccer coach admitted today that he possessed images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Jorge A. Roman, 49, pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to an information charging him with one count of possession of child pornography.
According to documents filed in this case and statements made in court:On May 16, 2014, Roman possessed 600 or more images of child sexual abuse on various DVDs, computers or other digital media at his residence in Princeton. Some of the images in Roman’s possession were images of prepubescent minors engaged in sexually explicit conduct.
The count of possession of child pornography carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for December 15, 2014.U.S. Attorney Fishman credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Maria L. Kelokates, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office in Trenton.
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Defense counsel: Lisa Van Hoeck Esq., Assistant Federal Public Defender, Trenton.
Roman, Jorge Information
Former Police Officer Sentenced to Serve 121 Months in Prison for Receiving Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – Stewart Alan Miller, 48, of Columbus, Ohio was sentenced in U.S. District Court to 121 months imprisonment for obtaining and receiving thousands of images and videos of child pornography via the internet and peer-to-peer file-sharing programs from approximately June 2003 through July 2013.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI) announced the sentence handed down today by U.S. District Judge Algenon L. Marbley.
Miller pleaded guilty on December 17, 2013 to one count of receipt of child pornography. According to testimony provided by the government during the plea hearing, the FBI began investigating Miller, who was a Columbus Police officer at the time, in October 2013 after receiving a tip. They obtained and executed search warrants at Miller’s residence at the time and a storage facility he rented, recovering various computers and digital media.
A forensic examination of two external drives located in the crawl space above Miller’s bathroom revealed the presence of images and videos of child pornography. The images dated back to 2002. The children in the videos ranged in age from toddler to teenager. The file paths of some of the images indicated that they were originally downloaded via a peer-to-peer file-sharing network. Images and videos of child pornography were also located on a laptop computer seized from the basement of the residence. Additional images of child pornography were recovered from several CDs seized from the storage facility rented by Miller.
“The fact that the defendant was a sworn law enforcement officer at the time he committed this offense actually exacerbates the seriousness of it, as he was violating his duty to protect the public by committing the offense,” Assistant U.S. Attorney Heather Hill told the court prior to sentencing.
Miller was also fined $17,500, ordered to pay restitution of $7,500, and sentenced to remain under court supervision for five years after he completes his prison sentence. During that time, he will be required to register as a sex offender anywhere that he lives, works or goes to school. He must also allow the court to install monitoring software on any computer he owns, uses or has access to that is connected to the internet.
This case is being brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney's Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims.
U.S. Attorney Stewart commended the investigation by the FBI Columbus Child Exploitation Task Force, which includes officers from the Westerville Police Department, and Assistant U.S. Attorney Heather Hill, who prosecuted the case.
Former IRS Employee Pleads Guilty to Tax Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former employee of the Internal Revenue Service pleaded guilty in federal court today to leading a conspiracy to steal taxpayers’ identity information in order to receive fraudulent tax refunds.
Taylor S. Knight, 32, of Kansas City, Mo., pleaded guilty before U.S. District Judge Howard F. Sachs to the charge contained in a March 18, 2014, federal indictment.
Knight worked as an employee of the IRS at the office at 333 W. Pershing Rd., Kansas City, from March 2009 to January 2012. Taylor admitted that she abused her position of trust when she inappropriately accessed the information of three taxpayers as part of a conspiracy to defraud the United States by using the stolen identity information to fraudulently induce the IRS into issuing tax refund payments.
For one of the victim taxpayers, Knight submitted a bogus online application for a prepaid debit card that was approved and mailed to an address in Oak Grove, Mo.; this debit card was never used. Knight admitted that she submitted this false online application to test whether her scheme to defraud the IRS was viable.
On Sept. 30, 2011, Knight used the information from two of the victim taxpayers (who were married) to submit a bogus online application for three prepaid debit cards. These debit cards were issued and mailed to the residence of the grandmother of her boyfriend and co-conspirator. According to her plea agreement, Knight admitted that her boyfriend monitored the mail sent to his grandmother’s address and retrieved the three prepaid debit cards. They agreed to use the grandmother’s address rather than use an address associated with Knight in an effort to conceal her role in this conspiracy to defraud the United States.
On Oct. 17, 2011, Knight submitted a 2010 tax return for the same two married victim taxpayers. The IRS approved a $46,572 refund, of which $5,000 was deposited on a debit card that had been obtained by Knight. The IRS attempted to deposit the remaining $41,572 refund on the other debit cards obtained by Knight, but the receiving banks rejected the deposits.
Knight admitted that, at her request, her boyfriend telephoned the IRS and falsely claimed to be the victim taxpayer. He allegedly provided the IRS representative with pertinent personal identification information for both victims and requested the IRS to send the remaining tax refund to a new address located in Independence, Mo. He identified this address because it was his former residence and he knew it was unoccupied.
In August 2011, the victim taxpayers filed legitimate amended tax returns. A $46,734 refund check was sent to the Independence address and was obtained by Knight. Knight admitted that she paid a second co-conspirator $500 to help her cash the refund check. Knight obtained false identification documents – including Social Security cards, credit cards and driver’s licenses – so that they could assume the identity of the victim taxpayers. They attempted to cash the stolen Treasury check at a local convenience store. The clerk was concerned about cashing such a large check and he went to his immediate supervisor for guidance. They told the clerk and his supervisor that, if they would cash the check, they could keep $6,000 of the proceeds. The supervisor decided not to cash the check, but he told them to come back later. When Knight and her co-conspirator returned, the owner reported the incident to law enforcement. Police officers arrived about 10 minutes later and they were arrested.
Under federal statutes, Knight is subject to a sentence of up to five 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 Trey Alford. It was investigated by the Treasury Inspector General for Tax Administration.Former High School Teacher Sentenced to 108 Months Imprisonment for Possession and Receipt of Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jeffrey Schmutzler, age 43, of Fayetteville, Pennsylvania was sentenced yesterday by Senior United States District Judge William Caldwell to 108 months’ imprisonment, a $15,000 fine and ten years of supervised release following his release from imprisonment after pleading guilty to possession and receipt of child pornography on July 29, 2013.
According to U.S. Attorney Peter Smith, in March of 2013, federal and state law enforcement officers executed a search warrant at the defendant’s home in Fayetteville, Pennsylvania and found several thousand videos and images of material containing child pornography, including 1425 images Schmutzler created using existing child pornographic images and Photo-shopping the cropped images of heads from 136 students at the school where he was employed. Schmutzler was employed as a teacher at Chambersburg High School.
This case was investigated by the United States Postal Inspection Service, the Pennsylvania State Police and the U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI). The case was prosecuted by Assistant United States Attorney Daryl F. Bloom.
Former Ft. Knox Resident Pleads Guilty to Assaulting and Causing Substantial Bodily Injury to One Minor ChildRead the Press Release
LOUISVILLE, Ky. – A former resident of Ft. Knox military base pleaded guilty in U.S. District Court this week to assaulting and causing substantial bodily injury to one minor child and assaulting an adult woman and another minor child announced David J. Hale, United States Attorney for the Western District of Kentucky.
Cynthia L. Marx, age 40, pleaded guilty to three of six counts in a federal indictment before Senior Judge John G. Heyburn II, on Thursday, July 24, 2014.
In Court, Marx admitted that on September 4, 2013, while staying with her friend, L.M.J., in Hardin County, Kentucky, at the Fort Knox military reservation, that she became violent and struck L.M.J. multiple times, that she struck and caused substantial bodily injury to a 14-year- old minor female and that she assaulted a 3-year-old boy.
If convicted at trial, Marx faced a sentence of no more than 29 years in prison, a fine of up to $900,000 and a three-year period of supervised release. Sentencing is scheduled before Senior Judge Heyburn on October 31, 2014, in Louisville.
This case is being prosecuted by Assistant United States Attorney Amanda Gregory and is being investigated by the U.S. Army, Criminal Investigation Command.
Former Federal Employees Sentenced to Prison for Tax FraudRead the Press Release
A married couple from Whidbey Island, Washington, both of whom had lengthy careers as federal employees, was sentenced today to prison for conspiracy to defraud the government and making false or fraudulent claims, announced U.S. Attorney Jenny A. Durkan. DEBRA A. AARON, 60, was sentenced to five years in prison and SAMUEL A. AARON, 71, was sentenced to 30 months in prison. Both were sentenced to three years of supervised release and $723,275 in restitution. SAMUEL AARON had a distinguished military career and then worked for the Federal Aviation Administration for more than 25 years. Noting that service, Chief Judge Marsha J. Pechman told him, “This kind of theft from the government cannot go on. You violated the trust of every veteran; you violated the trust of every school child; you violated the trust of every employee of the FAA.”
According to records filed in the case, in 2008 the AARONs promoted a well-known fraudulent tax scheme known as 1099 OID fraud. Using the scheme, the couple claimed they were owed a tax refund of $723,275. DEBRA AARON filed similar bogus claims on behalf of 30 other people for more than $14 million. Some $4 million was paid out before the IRS caught the fraud. The AARONs used a shell company to launder the proceeds of the scheme and claimed some of the money was used to help impoverished women in third world countries. In fact they used the money for a home remodel, expensive trips to Sedona, Arizona and the Caribbean, lavish outings to Las Vegas and other luxuries.
DEBRA AARON retired following a lengthy career at a variety of government jobs, retiring as a management consultant for the FAA. At the sentencing hearing Chief Judge Pechman told her “I can’t find any other motivation for doing this other than greed…. The public trust has been violated. Chief Judge Pechman noted that DEBRA AARON had recruited at least two of her friends to participate in the scheme, and now “their lives are quite devastated” by their criminal conviction and sentence.
The IRS has repeatedly publicized 1099-OID fraud, warning taxpayers about submitting fraudulent claims. The IRS website states:
False Form 1099 Refund Claims
In some cases, individuals have made refund claims based on the bogus theory that the federal government maintains secret accounts for U.S. citizens and that taxpayers can gain access to the accounts by issuing 1099-OID forms to the IRS. In this ongoing scam, the perpetrator files a fake information return, such as a Form 1099 Original Issue Discount (OID), to justify a false refund claim on a corresponding tax return.Don’t fall prey to people who encourage you to claim deductions or credits to which you are not entitled or willingly allow others to use your information to file false returns. If you are a party to such schemes, you could be liable for financial penalties or even face criminal prosecution.
The case was investigated by IRS Criminal Investigation (IRS-CI) and was prosecuted by Assistant United States Attorneys Kate Vaughan and Thomas Woods.
Former Employee Sentenced to 46 Months in Prison for Embezzling More Than $5.1 Million from Non-ProfitMoney Stolen over Eight-Year Period; Non-Profit Alerted Authorities Upon Discovery of the SchemeRead the Press Release
WASHINGTON - Ephonia M. Green, 44, of Upper Marlboro, Md., was sentenced today to 46 months in prison for embezzling more than $5 million from her former employer, a non-profit corporation, announced U.S. Attorney Ronald C. Machen Jr. and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Green pled guilty in November 2013 in the U.S. District Court for the District of Columbia to one count of theft concerning programs receiving federal funds and one count of engaging in illegal monetary transactions. She was sentenced by the Honorable Beryl A. Howell.
Upon completion of her prison term, Green will be placed on three years of supervised release.As part of the plea agreement, Green agreed to criminal forfeiture in the amount of roughly $5.1 million and restitution in the amount of roughly $5.1 million.
According to the government’s evidence, from Jan. 5, 1998, through July 15, 2013, Green was employed by the Association of American Medical Colleges as an administrative assistant. The association, located in Washington, D.C., represents all of the accredited medical schools in the United States and Canada and is responsible for administering the Medical College Admission Test or MCAT.
Green’s duties included processing invoices from the association’s vendors. Separately, Green owned a bridal shop in Upper Marlboro, Md. that conducted business under the name Fabulous Concepts Inc. or FCI.
From July 15, 2005, through July 1, 2013, Green created and submitted false invoices to the Association of American Medical Colleges in the name of three entities – The Brookings Institute, FCI, and the University Health System Consortium, also known as UHC. In doing so, she was seeking payment for services that were never provided and without the association’s knowledge that Green would be the actual recipient of the payments.
Through this fraudulent scheme, Green embezzled approximately $5.1 million from her employer. Although the association received federal program funds each calendar year, none of the money that was embezzled came from federal program funds.
The Brookings Institution is a private, non-profit policy organization based in Washington, D.C., and UHC is an alliance of academic medical centers and hospitals. Green is not affiliated with either entity. Green’s bridal shop, FCI, was never entitled to receive any money from the association. For the false invoices in the name of The Brookings Institute and UHC, Green registered similar trade names with the Maryland Department of Assessments and Taxation and then opened bank accounts in those names.
In announcing the sentence, U.S. Attorney Machen and Assistant Director in Charge Parlave thanked the Association of American Medical Colleges for promptly reporting its discovery of the embezzlement to the U.S. Attorney’s Office in July 2013, and for its full cooperation with the investigation that followed. U.S. Attorney Machen and Assistant Director in Charge Parlave also commended the investigative work of agents and analysts of the FBI’s Washington Field Office. Finally, they praised the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Corinne Kleinman, Deputy U.S. Marshal Wayne Rollock, former Assistant U.S. Attorney David Johnson, and Assistant U.S. Attorney Zia Faruqui, who worked on forfeiture and sentencing issues.
14-173Former Chicago Man Sentenced to More Than 36 Years in Federal Prison on Federal Drug Conspiracy ChargesRead the Press Release
ROCKFORD — A former Chicago, Ill. man was sentenced on July 22, 2014, in federal court on drug conspiracy charges. ROBERT PRESLEY, 34, also known as “Munchie,” was sentenced to 440 months in federal prison, to be followed by 5 years of supervised release. After a nine-day jury trial in the U.S. District Court in Rockford, Presley was convicted on June 14, 2012, of conspiracy to distribute at least one kilogram of heroin, one count of possessing a firearm in furtherance of a drug-trafficking crime, and two counts of being a felon in possession of a firearm.
According to the indictment and evidence at trial, Steven McDowell, 38, formerly of Rockford, also known as “Ty,” was the leader of an illegal drug trafficking operation in Rockford. Beginning as early as April 2010, and continuing into December 2010, the conspirators obtained large amounts of heroin from Chicago, transported the heroin to Rockford where it was diluted for resale and packaged in smaller zip lock bags or baggies for individual use, then grouped into packs. Presley’s role was to obtain raw heroin from Chicago and to assist in the distribution. The defendants used runners to distribute street-level quantities of heroin at numerous locations in Rockford. McDowell and other co-conspirators rented cars that were used to deliver heroin to their street-level dealers, and used cell phones to notify runners where to go to distribute heroin to a customer or for when a runner needed to be resupplied or have money picked up. Some of the co-conspirators, including Presley, used or possessed firearms for protection during their operations.
Two other men were also convicted on June 14, 2012, after the jury trial, and previously sentenced for their roles in the drug conspiracy:
STEVEN T. McDOWELL was convicted of one count of conspiracy to distribute at least one kilogram of heroin, and six counts of distribution of heroin, and was sentenced on Feb. 7, 2013, to 315 months in federal prison for his role in the conspiracy. McDowell was also ordered to serve 5 years of supervised release following his imprisonment.
JEREMY COOPER, 26, formerly of Chicago, also known as “J.D.,” was convicted of one count of conspiracy to distribute at least one kilogram of heroin, three counts of distribution of heroin, one count of possession with intent to distribute heroin, and one count of being a felon in possession of a firearm. Cooper was sentenced on Sept. 18, 2012, to 270 months in federal prison, and 5 years of supervised release following his imprisonment.
In addition, two other men pled guilty to their involvement in the conspiracy:
MURRAY STEVE HARRIS, JR., 38, formerly of Chicago, also known as “M,” pled guilty on Jan. 19, 2012, to conspiracy to distribute at least one kilogram of heroin, and was sentenced on April 19, 2012, to 130 months in federal prison, to be followed by 5 years of supervised release following his imprisonment.NORMAN BREEDLOVE, 48, formerly of Rockford, also known as “Way,” pled guilty on May 24, 2012, to one count of conspiracy to distribute at least one kilogram of heroin, and one count of possessing a firearm in furtherance of a drug trafficking crime, and is awaiting sentencing.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Richard Meyers, Winnebago County Sheriff; and Chet Epperson, Chief of the Rockford Police Department.
The government was represented by Assistant U.S. Attorney Mark T. Karner.
Final Defendant Sentenced in Identity Theft Scheme Involving Miami-Dade County Public Schools Students’ Personal Identifying InformationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendant Nydia Nelson, 30, of Miami, was sentenced today before U.S. District Judge Cecilia M. Altonaga to 84 months in prison, to be followed by three years of supervised release, and was ordered to pay $87,736 in restitution.
Co-defendants Pamela Rhim-Grant, 40, and Eugene Moss, 33, both of Miami, were sentenced on July 9, 2014, before U.S. District Judge Joan A. Lenard. Rhim-Grant was sentenced to 81 months in prison, to be followed by two years of supervised release. Moss was sentenced to 70 months in prison, to be followed by two years of supervised release. Rhim-Grant and Moss were each also ordered to pay restitution in the amount of $87,736.
Each of the defendants previously pled guilty to one count of computer fraud, in violation of Title 18, United States Code, Section 1030, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, Rhim-Grant was a food service manager at Horace Mann Middle School and an employee of Miami-Dade Public Schools. In connection with her position, Rhim-Grant had network computer access to the Miami-Dade Public Schools’ Integrated Student Information System (ISIS) database through which Rhim-Grant could access information regarding current and former Miami-Dade County Public Schools students' personal identifying information (PII), including names, dates of birth, and social security numbers.
Court documents also state that from approximately October 2012 through January 21, 2014, Rhim-Grant and co-conspirators Moss and Nelson agreed and conspired to access the network computer, with the intent to commit stolen identity fraud, for the purpose of obtaining student PII in furtherance of that fraud. Moss and Nelson placed orders for student PII with Rhim-Grant. Once the order was received, Rhim-Grant accessed the network computer and printed student information sheets containing the PII from the ISIS database and delivered them to either Moss or Nelson at a prearranged location. Once in possession, Moss and Nelson used the student PII to file income tax returns seeking fraudulent refunds. The fraudulent refunds were directed either to prepaid debit cards or accounts controlled by Nelson.
According to court documents, Rhim-Grant was paid $10 per student’s PII in either cash or gift cards. According to Rhim-Grant, approximately 400 students’ PII were fraudulently accessed on the network computer and delivered to Moss or Nelson pursuant to the scheme.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and the Miami-Dade Schools Police Department. The case is being prosecuted by Assistant U.S. Attorney Frank R. Maderal.
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.
Federal Grand Jury Indicts A Dallas County Commissioner, His Chief of Staff and Lobbyists in Multi-Faceted Conspiracy Involving BribesRead the Press Release
DALLAS — A federal grand jury has returned a 13-count indictment charging a long-time Dallas County elected official and three of his associates with various alleged felony offenses stemming from their involvement in conspiracies involving bribes, announced Sarah R. Saldaña, U.S. Attorney for the Northern District of Texas; Diego Rodriguez, Special Agent in Charge, FBI Dallas; and Kelly Carpenter, Assistant Special Agent in Charge, Dallas IRS Criminal Investigation.
The indictment, returned on Wednesday of this week and unsealed this morning, charges John Wiley Price, 64, Kathy Louise Nealy, 61, Dapheny Elaine Fain, 52, and Christian Lloyd Campbell, 44, with various felony counts of conspiracy, tax violations and false statements.
“The indictment unsealed today alleges that for more than a decade, in a shocking betrayal of public trust, Commissioner Price sold his office on the Dallas County Commissioners Court in exchange for a steady stream of bribes. While the vast majority of public officials are honest and maintain high ethical standards, it is unfortunate that some, as alleged in this indictment, choose to serve themselves,” said U.S. Attorney Saldaña. “I thank the hardworking men and women of the FBI and IRS Criminal Investigation who have spent countless hours, indeed years, investigating this case, dissecting his and others’ alleged schemes. Abuse of the public trust cannot and will not be tolerated.”
“The FBI’s top criminal program priority is investigating allegations of public corruption,” said Special Agent in Charge Rodriguez. “The defendants’ alleged actions were designed for personal financial gain at the expense of their constituents and the federal government. These types of actions constitute a breach of the public’s trust, erode confidence in government, and cost taxpayers money and resources.”
“Today’s indictment is a reminder that public officials and private industry who scheme to defraud the U.S. Government and violate the public’s trust will be brought to justice,” said Assistant Special Agent in Charge Carpenter. “Bribery, mail fraud and tax fraud will not be tolerated. IRS Criminal Investigation will continue to work with the U.S. Attorney’s Office and FBI to investigate corrupt behavior wherever we find it.”
According to the indictment, from January 2001 through June 27, 2011, Commissioner Price allegedly accepted more than $950,000 in cash, cars and land from Kathy Nealy, a Dallas lobbyist, in exchange for using his influence and position on the Commissioners Court to act favorably on behalf of Ms. Nealy’s clients and those of Christian Campbell, another consultant in Dallas. These financial benefits, averaging between $5,000 and $10,000 per month, were never disclosed on the Commissioner’s tax returns or on state-mandated Financial Disclosure Statements that he signed under oath and filed with the County Clerk for public inspection.
Not only did Commissioner Price hide these bribery benefits from the public and the IRS, but he also earned income from other businesses that he kept secret, including a business, Man Male Sales (MMS), operated by Dapheny Fain, his chief of staff. All told, Commissioner Price allegedly took in more than $1.1 million that he did not report, filing false and fraudulent income tax returns for 2007, 2008 and 2009. While Ms. Nealy was paying bribes to Commissioner Price, she actively evaded paying more than $600,000 in income taxes that she admitted owing. The indictment also alleges that Ms. Fain made false statements to special agents with the FBI regarding Commissioner Price’s involvement in MMS.
According to the indictment, Ms. Nealy’s business clients were vendors seeking contracts with Dallas County and businesses pursuing matters on which Commissioner Price voted in Commissioners Court. It alleges that Ms. Nealy arranged meetings, dinners, etc. with Commissioner Price for her corporate clients who had business in front of the Commissioners Court, and many of those meetings occurred during periods when contact with elected officials and other county employees was prohibited because the selection process for bids on county contracts was in progress. Commissioner Price sponsored and advocated Ms. Nealy’s clients’ interests, and he voted on these matters in a matter that benefitted them. In return, the indictment alleges, Ms. Nealy provided Commissioner Price with a stream of benefits, in the form of money, cars, and land, totaling approximately $950,000.
Specifically, Price and Nealy are each charged with one count of conspiracy to commit bribery concerning a local government receiving federal benefits; one count of conspiracy to defraud the IRS, and six counts of deprivation of honest services by mail fraud. In addition, Price is charged with three counts of subscribing to a false and fraudulent U.S. Individual Income Tax Return. Nealy is also charged with one count of attempting to evade or defeat payment of tax. Fain is charged with one count of conspiracy to defraud the IRS and one count of making a false statement. Campbell is charged with one count of conspiracy to commit bribery concerning a local government receiving federal benefits.
An indictment is merely an accusation and a defendant is presumed innocent unless proven guilty in a court of law. However, the penalties upon conviction are: 20 years in federal prison and a $250,000 fine for each count of deprivation of honest services by mail fraud and aiding and abetting; five years in federal prison and a $250,000 fine for each count of conspiracy to commit bribery concerning a local government receiving federal benefits, conspiracy to defraud the IRS, attempting to evade or defeat payment of tax, and making a false statement; and three years in federal prison and a $250,000 fine for subscribing to a false and fraudulent U.S. individual income tax return.
The FBI and IRS-Criminal Investigation are conducting this ongoing investigation. Assistant U.S. Attorneys Walt Junker, Katherine Miller, Jay Dewald and Chad Meacham are prosecuting.
El Paso TX Man Pleads Guilty to Cocaine DistributionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that ELADIO ARGUELLES, age 26, of El Paso, Texas, pled guilty to an Information charging him with Possession with Intent to Distribute 5 Kilograms or More of Cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).
The charge arose from an investigation by the Savanna Police Department and the Drug Enforcement Administration. The defendant was indicted in June 2014.
The Information alleged that on or about April 5, 2014, in the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with the intent to distribute five (5) kilograms or more of a mixture or substance containing a detectable amount of Cocaine, a Schedule II Controlled Substance.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
The statutory range of punishment is not less than 5 years imprisonment or more than 40 and/or up to a $5,000,000.00 fine. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Kyle Waters represented the United States.
Detroit One Collaboration Leads to 33 Arrests and Indictments in Southwest DetroitRead the Press Release
The Detroit One collaboration of local, state and federal law enforcement has led to the arrests and indictments of 33 defendants in southwest Detroit, United States Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by the other members of the Detroit One initiative.
Five individuals were named in a racketeering indictment, unsealed today, alleging violent acts by members of Latin Counts street gang.
In addition to the racketeering defendants, two other defendants were arrested today in a separate indictment on charges of being felons in possession of firearms in southwest Detroit.
In addition, 26 other defendants were recently charged in an indictment with heroin and cocaine distribution and related firearms offenses. These defendants also operated in southwest Detroit.
The racketeering indictment unsealed today charged the following individuals:
- Victor Vasquez, 23, of Detroit, was charged with using and carrying a firearm in furtherance of a crime of violence causing death, assault resulting in serious bodily injury in aid of racketeering and assault with a dangerous weapon in aid of racketeering;
- Avery Denardis, 20, of Dearborn, was charged with assault resulting in serious bodily injury in aid of racketeering;
- Jeffrey Lunsford, 34, of Ecorse, was charged with assault resulting in serious bodily injury in aid of racketeering;
- Kyle Voltz, 24, of Lincoln Park, was charged with assault resulting in serious bodily injury in aid of racketeering;
- Jacob Hixson, 20, of Detroit, was charged with assault resulting in serious bodily injury in aid of racketeering.
The felon in possession indictment unsealed today charged two additional individuals:
- Tim Galvan, 32, of Detroit, was charged with being a felon in possession of a firearm; and
- Luke Reardon, 23, of Detroit, was charged with being a felon in possession of a firearm.
According to the racketeering indictment, the Latin Counts gang operates in southwest Detroit and the downriver communities of Lincoln Park and Ecorse. The indictment alleges that five defendants committed assaults, murder, selling illegal narcotics and stolen firearms, breaking and entering homes and businesses and robbery. The indictment alleges that the gang uses violence to stake out its “turf” and intimidate both rival gang members and the citizens of southwest Detroit.
The indictment alleges that defendant Victor Vasquez aided and abetted in the use of a firearm during a crime of violence, causing the death of Mustafa Al-Yasiry at the Big Apple Market in southwest Detroit on April 18, 2014. According to the indictment, several Latin Count assaulted Al-Yasiry, and one member shot and killed him.
Under the Detroit One Initiative, and through the lead efforts of the Detroit Police Department and the FBI Violent Crime Task Force, which consists of representatives of Homeland Security Investigations, Detroit Police Department, Lincoln Park Police Department, Michigan Department of Corrections, and Michigan State Police, investigators were able to merge separate probes of various members of this organization and its activities into one encompassing investigation.
"The Detroit One partnership is working to reduce violent crime though enforcement and prevention,” McQuade said. “Today's enforcement action is a great example of the impact we can have when federal, state and local law enforcement agencies work together with a united strategy. By arresting and charging individuals who commit violent crimes, we hope to restore peace to our neighborhoods."“As part of the Detroit One initiative, this collaborative investigation targeted some of the most violent criminal offenders in the Detroit metropolitan area,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “Combating violent crime remains among the highest priorities for the FBI. There is nothing more important than protecting our communities and keeping law abiding citizens safe. That effort is being waged each and every day by all of our Detroit One partners. It is tremendously important work, and the officers, agents and prosecutors engaged in this effort will continue to fight on behalf of the citizens we serve."
Detroit One is a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit. By working collaboratively, local, state, and federal law enforcement is striving to maximize its ability to identify and arrest the persons and groups initiating the violence in Detroit.- Victor Vasquez, 23, of Detroit, was charged with using and carrying a firearm in furtherance of a crime of violence causing death, assault resulting in serious bodily injury in aid of racketeering and assault with a dangerous weapon in aid of racketeering;
Department of Justice Celebrates 50th Anniversary of the Civil Rights ActRead the Press Release
SHREVEPORT/LAFAYETTE/ALEXANDRIA/MONROE/LAKE CHARLES, La.:United States Attorney Stephanie A. Finley attended a celebration of the 50th anniversary of the Civil Rights Act at a program hosted by the U.S. Justice Department and Howard University held in Washington, D.C., last week.
Attorney General Eric Holder spoke at Howard University in Washington, D.C. on July 15, 2014, in celebration of the 50th anniversary of the Civil Rights Act. The Attorney General gave a short history of the passage of the Civil Rights Act.
The Civil Rights Act was signed into law on July 2, 1964 by President Lyndon B. Johnson, and ended legal segregation in public places and banned employment discrimination on the basis of race, color, religion, sex or national origin. It also blazed a trail for subsequent related legislation: the Voting Right Act, the Fair Housing Act and the Americans with Disabilities Act. Fulfilling the promise of Brown vs. Board of Education, the Act authorized the Department of Education to assist with school desegregation and permits the U.S. Attorney General to file lawsuits to desegregate schools. Additionally, the Act prohibits the unequal application of voting requirements, established the Community Relations Service, and gives enhanced authority to the Commission of Civil Rights.
“We know from our history that advances toward equality and inclusion have never been inevitable,” Attorney General Holder said Tuesday. “Every step forward has been hard-won. The words of our founding documents were not automatically imbued with the force of law. And our nation’s future continues to be defined, and its destiny determined, by men and women of both character and conviction; by courageous people who are unafraid to stand up for what they know to be right; and by patriots who never shrink from the responsibility to draw this country ever closer to its highest ideals.”
The speakers and participants at the 50th anniversary program at Howard University honored the strides that have been made in the journey for equal rights and reminded those in attendance of the work that remains to fully realize that promise. In addition to Howard University Interim President Dr. Wayne A.I. Frederick and the keynote address by Attorney General Eric Holder, the program included remarks from U.S. Secretary of Education Arne Duncan and U.S. Secretary of Labor Thomas Perez, who lead two of the Department of Justice’s key government partners in enforcing the Civil Rights Act. Ambassador Andrew Young, former leader of the Southern Christian Leadership Conference, also delivered remarks.
The D.C. celebration illuminated the importance of the 50-year class reunion of the Peabody High School Class of 1964 held on July 5, 2014, in Alexandria, La. Finley spoke about the transformational events of the Civil Rights Movement that took place in Louisiana and across the nation in 1963 and 1964.More than 100 people attended the Class’ 50-year reunion banquet, including classmates that visited from as far away as California and New Jersey. The Rev. George Price gave the invocation, and classmate Harold Morrison gave the greeting by telling humorous stories and reminding everyone of the importance of the class to the history of Peabody High School. Classmate and former banker Willis L. Spears who has known Finley since she was a child, introduced her to those gathered for the reunion.
“We were happy to have U.S. Attorney Stephanie Finley speak at our 50th class reunion,” reunion chair Lillie Batiste Stewart said. “She brought up highlights of events that took place in the early 1960s while we were in high school and complimented us on still being friends and keeping in touch after 50 years.”
J.B. Lafargue founded Peabody High School in 1895 as the Peabody Industrial School with his wife Sarah C. B. Mayo Lafargue. At the time, it was the only school for black students in Alexandria with grades one to seven. The school was named in honor of the George Peabody Foundation which had awarded a grant to the school. It became a state-approved public school in 1933. Today, Peabody High School is one of two magnet high schools in Rapides Parish. George Peabody was born on February 18, 1795 in Danvers (now Peabody), Massachusetts. In 1867, George Peabody established the Peabody Education Fund, the first education philanthropy in the United States. The purpose of the fund was to help provide education to children of both races in destitute areas of the post-Civil War South.
“The members of this class were on the frontlines of the Civil Rights Movement in the South,” Finley stated. “They graduated high school during a time of great change and struggle. We owe a debt of gratitude to them for the sacrifices they made. Their efforts brought us closer to equality and hope to later generations. I am proud that I was chosen to speak before this distinguished group of men and women.”
In the years since the Act was signed, the struggle to attain the goals contained within has remained. The U.S. Attorney’s Office plays a pivotal role in the administration’s civil rights enforcement priorities. Along with the U.S. Department of Justice’s Civil Rights Division, the U.S. Attorney’s Office has jurisdiction to bring cases under the Civil Rights Act and other related federal statutes.
Finley is the first female U.S. Attorney to serve in Louisiana. She was selected by President Barack Obama in January of 2010, after being recommended by U.S. Senator Mary Landrieu, and confirmed by the U.S. Senate in June of 2010. United States Attorney Finley was sworn into office on June 2, 2010 to serve the Western District of Louisiana as the chief law enforcement officer for 42 of the state’s 64 parishes.
Defendants Enter Guilty Pleas in Child Pornography CasesRead the Press Release
LUBBOCK, Texas — Three defendants charged in unrelated cases appeared yesterday before U.S. District Judge Sam R. Cummings and pleaded guilty to various felony child pornography offenses. In each case, Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
Rocky Joe Williams, 37, of Littlefield, pleaded guilty to one count of transportation of child pornography. He faces a statutory penalty of not less than five years or more than 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. Williams, who is on bond, admitted that he used his cell phone and the Google Picasa Web photo-sharing site on the Internet to transport numerous images of child pornography.
Parker James Chapman, 23, of Lubbock, pleaded guilty to an Information charging one count of attempted possession of child pornography and aiding and abetting. He faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. Chapman, who is on bond, admitted that he used his cell phone to communicate with a person he believed to be a minor, under age 18, after responding to an online personal add. That person, however, was an undercover police officer posing as a 15-year-old female. Chapman requested a photograph of the minor, but after he received a non-sexual image of a minor, Chapman requested something “more interesting.” Chapman admitted that in making this request, it was his intent to receive an image of child pornography.
Christopher Anthony Lovato, 30, of Lubbock, pleaded guilty to an Information charging one count of possession of child pornography and aiding and abetting. He faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. Lovato, who is on bond, admitted that he used his cell phone to possess numerous images of child pornography that had been received from the Internet.
The cases were brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s 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 sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Lubbock Police Department Internet Crimes Against Children Task Force and the FBI investigated the cases, and the Littlefield Police Department and the Texas Department of Public Safety also assisted in the investigation of the Williams case. Assistant U.S. Attorney Steven M. Sucsy is prosecuting.
Dangerous Felon Gets Five Years for Possessing A FirearmRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick Miles announced today that Jason Paul Arnold, age 32, formerly of Garden, Michigan, received five years in prison for being a convicted felon in possession of a firearm. Arnold was previously convicted by a jury after a one day trial in Grand Rapids on March 17, 2014.
The series of events that led to Arnold’s conviction began in January 2013, when Arnold threatened to start “World War Three” if Child Protective Services (CPS) workers removed his children from his custody. Arnold was temporarily detained by police when CPS did remove his children. While detained, Arnold attempted to commit suicide in a police vehicle. Arnold was involuntarily hospitalized following this suicide attempt. In March 2013, Arnold, who has an extensive adult criminal history that includes violent crimes, again attempted to commit suicide and was hospitalized. In early April, after his release from the hospital, Arnold obtained a Winchester .30-06 caliber rifle and affixed a scope to it. He also purchased five boxes of ammunition and shot most of this ammunition in target practice.
The Michigan State Police learned that Arnold might have obtained this high-powered rifle and questioned him. After Arnold admitted that he possessed the rifle, he was arrested. A search of Arnold’s house resulted in the discovery of the Winchester .30-06 rifle with a round in the chamber, a fully loaded magazine attached and a scope mounted on it. Additional rounds of ammunition were found along with the rifle. Arnold explained to police that he purchased the firearm simply to kill himself, which at a minimum didn’t explain the need for a high-powered rifle, scope and multiple rounds of ammunition.
At sentencing, U.S. District Judge Robert Holmes Bell recognized Arnold posed a danger to the public. He sentenced Arnold to five years in prison because Arnold was not simply going to commit suicide, but was preparing to harm others.
The Michigan State Police and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case. Assistant U.S. Attorney Maarten Vermaat prosecuted it.
END
Court Denies Jeffrey Macdonald’s Motions for A New TrialRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced Senior United States District Judge James C. Fox has denied Jeffrey MacDonald’s latest motions for a new trial. United States Attorney Thomas G. Walker stated, “Today our thoughts turn toward Colette, Kimberly and Kristen MacDonald whose lives were taken tragically by the defendant in this case. We have and will continue to seek justice on their behalf.”
United States District Judge James C. Fox entered an order on July 24, 2014, denying MacDonald’s motions and stating that MacDonald had not made a sufficient showing to permit him to appeal Judge Fox’s decision to the United States Court of Appeals for the Fourth Circuit in Richmond, VA. If MacDonald wishes to appeal, he will now have to ask the Fourth Circuit for permission to appeal the ruling.
MacDonald was convicted in 1979 of the 1970 murders of his pregnant wife Collette, and his two daughters Kimberly, age 5, and Kristen, age 2, at Fort Bragg, NC. Since then, MacDonald has filed numerous challenges to his conviction, all unsuccessful. The latest motions were based on allegations made in 2006 by former U.S. Deputy Marshal Jimmy Britt and DNA test results released in 2006. The District Court found that Britt’s allegations were “incredible and unreliable.” The Court also found that the DNA results did not “constitute exculpatory scientific evidence.”
The Court held a 7-day evidentiary hearing in September 2012 and received extensive briefing in 2013.
The Court stated a separate order would be forthcoming with respect to MacDonald’s 2011 motion requesting additional DNA testing.
The Government is represented in the matter by First Assistant U.S. Attorney John Stuart Bruce, Assistant U.S. Attorney Leslie K. Cooley, and Special Assistant United States Attorney Brian M. Murtagh.
Investigation of this case was conducted by the Army Criminal Investigative Division, and the Federal Bureau of Investigation.
Convicted Felon Sentenced to Prison for Possession of A FirearmRead the Press Release
Jackson, Miss - Jeremy J. Brantley, 33, of Forest, was sentenced to 21 months in federal prison followed by three years of supervised release for possession of a firearm by a convicted felon, U.S. Attorney Gregory K. Davis announced today. He was also ordered to pay a $1500 fine.
Forest Police Officers on patrol in a Forest neighborhood arrested Brantley after he was seen carrying a firearm in his waistband. Brantley has prior convictions for possession of marijuana and burglary of an occupied dwelling.
This case was investigated by the Bureau of Alcohol Tobacco Firearms and Explosives and the Forest Police Department. It was prosecuted by Assistant U.S. Attorney Erin O. Chalk.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:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Convicted Felon Sentenced to Prison for Possession of A FirearmRead the Press Release
Jackson, Miss – Darren K. Smith, 33, of Philadelphia, Mississippi, was sentenced on July 24, 2014 by U.S. District Judge Carlton W. Reeves, Jr. to 23 months in prison followed by three years of supervised release for possession of a firearm by a convicted felon, announced U.S. Attorney Gregory K. Davis.
On March 18, 2014, Smith pled guilty to possession of a firearm by a convicted felon. The crime occurred on the tribal lands of the Mississippi Band of Choctaw Indians. Smith had been convicted of business burglary on November 6, 2000 in the Circuit Court of Neshoba County, Mississippi.
This case was investigated by the Bureau of Alcohol Tobacco Firearms and Explosives and the Mississippi Band of Choctaw Indians Police Department. It was prosecuted by Assistant U.S. Attorney Patrick Lemon.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:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.