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Thursday 24 July 2014
Allen County, Kentucky, Residents Sentenced for Roles in Stealing Then Selling Hydrocodone Pills from A Scottsville, Kentucky, PharmacyRead the Press Release
– Former pharmacy employee and co-defendants admitted to conspiring with each other to sell and distribute the stolen hydrocodone pills worth $29,808
BOWLING GREEN, Ky. – The former employee of Stovall’s Prescription Shop, located in Scottsville, Kentucky, and two co-defendants were sentenced today in United States District Court, for their roles in a conspiracy to distribute the pain killer hydrocodone, that was stolen by the employee, and, for conspiring to sell over $5,000 of stolen hydrocodone, that had not been made available to consumers for retail purchase, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Lynn Harper Denton, Jeffery Clay Stinson and Katherine Virginia Rookstool, all from Allen County, Kentucky had pleaded guilty to various charges in a seven count federal indictment and were sentenced today by Chief Judge Joseph H. McKinley, Junior. Stinson was sentenced to 27 months in prison, forfeited $1,117.67 and ordered to serve three years of supervised release. Rookstool and Denton were both sentenced to two years’ probation with 8 months of home incarceration. Denton forfeited $5,718.51 and two vehicles; a 2002 Ford Mustang and a 2009 Pontiac G6. Rookstool forfeited $6,500. All three defendants jointly and severally are liable for $3,000 in restitution to Stovall’s Prescription Shop.
According to their plea agreements, between May 2012, and continuing to October 16, 2012, in Allen County, Kentucky, Denton, a former employee of Stovall’s Prescription Shop, conspired with Stinson and Rookstool, to knowingly possess and distribute hydrocodone. Denton admitted to stealing over 10,000 hydrocodone pills from Stovall’s Prescription Shop and selling them to Rookstool, who then sold the pills to Stinson. Stinson sold the pills to others.
Further, Denton admitted that while employed at Stovall’s Prescription Shop, between May 2012, and continuing through October 16, 2012, that she and Rookstool conspired to sell and distribute over $5,000 of stolen hydrocodone that had not been made available to consumers for retail purchase. This is a violation of 18 USC § 670 (theft of medical products) and is the first such prosecution in the Western District of Kentucky. The retail value of the stolen hydrocodone was $29,808.
This case was prosecuted by Assistant United States Attorney David Weiser and was investigated by the U.S. Food and Drug Administration's Office of Criminal Investigations, Owensboro domicile, the Allen County Sheriff’s Department, and the Scottsville Police Department.
Admitted Gang Member Sentenced for Federal Racketeering ChargesRead the Press Release
Armando Jose Velasquez, aka “Money,” 27, of East Chicago, Indiana, was sentenced today to serve 305 months in prison on federal racketeering charges relating to a Dec. 3, 2011, attempted murder.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David A. Capp for the Northern District of Indiana made the announcement. The sentence was imposed today by U.S. District Court Chief Judge Philip P. Simon.
According to court documents, on Dec. 3, 2011, Velasquez fired a gun into a car being driven by an 18-year-old resident of East Chicago, Indiana, and struck the victim three times. Velasquez believed that the victim was a rival gang member, but the victim was not actually a gang member and was not involved in any criminal activity. Velasquez had been previously convicted in the Lake County Superior Court in Indiana of voluntary manslaughter and sentenced to 12 years in prison in 2005 and was on state parole when he committed the offense.
Velasquez was part of a 24-defendant indictment alleging that members of the Imperial Gangsters committed 14 previously-uncharged homicides: 12 in East Chicago, Indiana, one in Hammond, Indiana, and one in Gary, Indiana. The indictment also charged a decade-long racketeering conspiracy that involved the attempted murder of 19 other victims and the large scale distribution of cocaine and marijuana.
Velasquez pleaded guilty on Jan. 10, 2014, to one count of conspiracy to participate in racketeering activity, attempted murder in aid of racketeering activity and a firearm offense relating to the Dec. 3, 2011, attempted murder. Velasquez is one of 22 defendants charged in the indictment to plead guilty. One defendant, Richard Reyes, was convicted by a jury of murder and conspiracy to commit racketeering activity on Jan. 24, 2014, and is scheduled to be sentenced on Sept. 30, 2014. The remaining defendant is scheduled for trial on Jan. 12, 2015.
An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the FBI, and the East Chicago Police Department, with assistance from the Gary Police Department, the Hammond Police Department and the Lake County High Intensity Drug Trafficking Area Program. This case is being prosecuted by Trial Attorney Bruce R. Hegyi of the Criminal Division’s Capital Case Section and Assistant U.S. Attorney David J. Nozick of the Northern District of Indiana.$80 Million Judgment Entered Against BNP Paribas for False Claims to the U.S. Department of AgricultureRead the Press Release
The Department of Justice announced today that an $80 million False Claims Act judgment was entered against BNP Paribas for submitting false claims for payment guarantees issued by the U.S. Department of Agriculture (USDA). BNP Paribas is a global financial institution headquartered in Paris.
“We will not tolerate the misuse of taxpayer funded programs designed to help American businesses,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “Companies that abuse these programs will be held accountable.”
The United States filed a lawsuit against BNP Paribas in connection with its receipt of payment guarantees under USDA’s Supplier Credit Guarantee (SCG) Program. The program provided payment guarantees to U.S.-based exporters for their sales of grain and other agricultural commodities to importers in foreign countries. The program encouraged American exporters to sell American agricultural commodities to foreign importers and covered part of the losses if the foreign importers failed to pay. The SCG Program regulations provided that U.S. exporters were ineligible to participate in the SCG Program if the exporter and foreign importer were under common ownership or control.
The judgment entered by the court resolves the government’s allegations that, from 1998 to 2005, BNP Paribas participated in a sustained scheme to defraud the SCG Program. In furtherance of the scheme, American exporters and Mexican importers who were under common control improperly obtained SCG Program export credit guarantees for transactions between the affiliated exporters and importers. In some cases, the underlying transactions were shams and did not involve any real shipment of grain. BNP Paribas accepted assignment of the credit guarantees from the American exporters, even though it knew that the affiliated exporters and importers were ineligible for SCG Program financing, and a BNP Paribas vice-president, Jerry Cruz, received bribes from the exporters. Beginning in April 2005, when the Mexican importers began defaulting on their payment obligations, BNP Paribas submitted claims to the USDA for the resulting losses.
On Jan. 20, 2012, Cruz pleaded guilty to conspiracy to commit bank fraud, mail fraud and wire fraud, and conspiracy to commit money laundering.
“I would like to thank the Department of Justice and the USDA General Counsel’s office for their collaboration in recovering $80 million under this judgment,” said Administrator of USDA’s Foreign Agricultural Service Phil Karsting. “This illustrates the importance USDA and this administration places on protecting the integrity of our programs.”
The resolution of this matter was the result of a coordinated effort among the Commercial Litigation Branch of the Justice Department’s Civil Division, the USDA, the USDA Office of Inspector General, the U.S. Postal Inspection Service and the Internal Revenue Service Criminal Investigation.
The lawsuit is captioned United States v. BNP Paribas SA, et al., No. 4:11 cv 3718 (S.D. Tex.).
Wednesday 23 July 2014
Van Buren County Man Sentenced for Selling Guns Without A LicenseRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick Miles announced today that David Grant Rainey, age 66, was sentenced to two years supervised release, with one year to be served in home confinement following his felony conviction for selling firearms without a license. Rainey was also fined $4,000.00. U.S. District Judge Janet T. Neff, who presided over the case, also ordered the forfeiture of Rainey’s 71 firearms and some 94,000 rounds of ammunition. And now as a convicted felon, Rainey is also prohibited from possessing firearms.
Rainey pled guilty to this charge on April 10, 2014. Selling firearms without a license is punishable by up to five years’ imprisonment and a maximum fine of $250,000.
The case resulted from a joint undercover investigation by the federal Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Van Buren County Sheriff’s Office. On August 13, 2013, ATF agents executed a search warrant, with the assistance of the Van Buren County Sheriff’s Office at Rainey’s farm in Bangor, Michigan, seizing 71 firearms – both handguns and long guns – along with 93,770 rounds of various types of ammunition.
END
Urbana Man Charged with Child Pornography OffensesRead the Press Release
Urbana, Ill. – Jim Lewis, U.S. Attorney for the Central District of Illinois, announced today that a federal grand jury in Peoria has returned an indictment charging Shannon Logan, 35, of the 1400 block of Scovill St., Urbana, Ill., with distribution, receipt, and possession of child pornography. The indictment, returned late yesterday, alleges that from Mar. 5, 2014, to May 30, 2014, Logan traded images, via the internet, of minors engaged in sexually explicit conduct and retained the images and videos he traded on computer storage devices.
Logan remains in law enforcement custody following his arrest on May 30, 2014, on state charges. In consultation with Champaign County State’s Attorney Julia Rietz, the U.S. Attorney’s office has adopted the matter at this time for prosecution of the alleged child pornography charges.
A date will be determined by the U.S. Clerk of the court for Logan to appear for arraignment before U.S. Magistrate Judge David G. Bernthal in federal court in Urbana.
If convicted of the federal offenses charged, the statutory penalty for each count of distribution and receipt of child pornography is a mandatory minimum of five years in prison to 20 years in prison and a term of supervised release of up to life following any term of imprisonment. If a defendant has a prior child sex abuse or child pornography conviction, the statutory penalty is not less than 15 years and up to 40 years in prison. For possession of child pornography, the penalty is up to 10 years in prison.
The charges are being investigated by the Urbana Police Department; U.S. Immigration and Customs Enforcement Homeland Security Investigations; and the Illinois Department of Children and Family Services. The case is being prosecuted by Assistant U.S. Attorney Elly Peirson with the cooperation of Champaign County State’s Attorney Julia Rietz.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys= 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 via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
# # # #Twin Falls Man Admits to Unlawfully Possessing FirearmsRead the Press Release
BOISE – Ronnie M. Preal, 42, of Twin Falls, Idaho, pleaded guilty today in United States District Court to unlawfully possessing firearms, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, officers with the Twin Falls Police Department and Twin Falls County Sheriff’s Department served a search warrant at Preal’s residence on January 3, 2014. During the search, officers found a 10-gauge shotgun and a 9 millimeter pistol. Preal admitted that he possessed the firearms. Preal is prohibited from possessing firearms because he was previously convicted of manslaughter in California in 1996.
The charge is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release. The government is seeking forfeiture of the firearms.
Sentencing is set for October 20, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by the Twin Falls Police Department; Twin Falls County Sheriff’s Department; and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Preal is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Three Indicted for Federal Program FraudRead the Press Release
Jackson, Miss - Linda Harvey-Irvin, 62, of Jackson, Donald Walton, 51, of Vicksburg, and Markuntala Croom, 45, of Columbia, Mississippi have been indicted by a federal grand jury for conspiring to embezzle money from the Mississippi Gulf Coast Community Action Agency (“GCCAA”), an organization that receives more than $10,000 in federal funding each year, announced U.S. Attorney Gregory K. Davis and Acting FBI Special Agent in Charge Johnnie Sharp.
Harvey-Irvin, the former Director of the GCCAA and Director of the associated Head Start Program, is charged in one indictment with Donald Walton, owner and operator of Walton Construction, with conspiracy to commit federal program fraud by accepting and paying bribes. According to the indictment, Harvey-Irvin accepted money from Walton in exchange for awarding construction contracts. It is alleged that GCCAA paid Walton approximately $365,282.20 during the course of the conspiracy and Walton, in turn, paid Harvey-Irvin $31,000 in kickbacks for the awarding of those contracts.
A second indictment charges Harvey-Irvin and Markuntala Croom, owner and operator of Croom Management Services, with conspiracy to commit federal program fraud by accepting and paying bribes, and conspiracy to commit money laundering. According to the indictment, Harvey-Irvin accepted money from Croom in exchange for awarding contracts for consulting work. It is alleged that GCCAA paid Croom approximately $649,047 during the course of the conspiracy and Croom, in turn, paid Harvey-Irvin $91,961.49 in kickbacks for the awarding of those contracts. The indictment alleges that Croom and Harvey-Irvin conspired to launder the kickbacks with Croom making cash deposits into a bank account owned by Harvey-Irvin.
The maximum statutory penalties for the offenses charged are: five years in prison and a $250,000 fine per count for conspiracy, ten years in prison and a $250,000 fine per count for accepting and paying bribes, and 20 years in prison and a $500,000 fine per count for conspiracy to commit money laundering.
These cases were investigated by the Federal Bureau of Investigation and the Mississippi Office of the State Auditor - OIG. It will be prosecuted by Assistant U.S. Attorney Scott Gilbert.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.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.
Three Defendants Arrested on Charges of Providing Material Support to a Foreign Terrorist OrganizationRead the Press Release
Three defendants were arrested today on charges of providing material support to al-Shabaab, a designated foreign terrorist organization that is conducting a violent insurgency campaign in Somalia. Two additional defendants are fugitives in Kenya and Somalia.
Assistant Attorney General John P. Carlin of the Justice Department’s National Security Division, U.S. Attorney Dana J. Boente for the Eastern District of Virginia, Assistant Director in Charge Valerie Parlave of the FBI’s Washington, D.C. Field Office and Special Agent in Charge Frank Montoya, Jr. of the FBI’s Seattle Field Office, made the announcement.
A superseding indictment was issued on June 26, 2014, by a federal grand jury in the Eastern District of Virginia, charging the defendants with one count of conspiracy to provide material support to a foreign terrorist organization and 20 counts of providing material support to a foreign terrorist organization. The indictment was unsealed after the following arrest warrants were executed today:
Muna Osman Jama , 34, was arrested at her home in Reston, Virginia;
Hinda Osman Dhirane , 44, was arrested at her home in Kent, Washington;
Farhia Hassan was arrested at her residence in the Netherlands;
Fardowsa Jama Mohamed is a fugitive in Kenya and the subject of a pending arrest warrant; and
Barira Hassan Abdullahi is a fugitive in Somalia and the subject of a pending arrest warrant.
If convicted, each defendant faces a maximum penalty of 15 years in prison on each count in the indictment.
The Harakat Shabaab al-Mujahidin, commonly known as al-Shabaab, is a terrorist group conducting a violent insurgency campaign in Somalia. In 2008, the U.S. government designated al-Shabaab as a foreign terrorist organization, and in February 2012, the leaders of al-Shabaab and the terrorist group al-Qa’ida publicly announced the merger of the two groups.
According to court records, defendants Muna Osman Jama and Hinda Osman Dhirane were the leaders of an al-Shabaab fundraising conspiracy operating in the United States, Kenya, the Netherlands, Somalia and elsewhere. Jama and Dhirane allegedly directed a network composed primarily of women who provided monthly payments that were coordinated, facilitated and tracked by the defendants to their conduits in Kenya and Somalia. According to court records, Jama was principally responsible for sending money to Kenya through her conduit, defendant Fardowsa Jama Mohamed, while Dhirane was primarily responsible for sending money to Somalia through her conduit, defendant Barira Hassan Abdullahi.
According to court records, the defendants would refer to the money they sent overseas as “living expenses,” and they repeatedly used code words such as “orphans” and “brothers in the mountains” to refer to al-Shabaab fighters, and “camels” to refer to trucks needed by al-Shabaab. The money transfers often were broken down into small amounts as low as $50 or $100, and the funds were intended for use by al-Shabaab insurgents operating in Somalia.
This case was investigated bythe FBI’s Washington, D.C. and Seattle Field Offices. The Justice Department’s Office of International Affairs also played an essential role in coordinating the arrests and searches with foreign authorities.
Assistant U.S. Attorney James P. Gillis and Trial Attorney Danya E. Atiyeh of the Counterterrorism Section of the Justice Department’s National Security Division are prosecuting the case in the Eastern District of Virginia. The U.S. Attorney’s Office in Seattle also provided assistance.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.Three Defendants Arrested on Charges of Providing Material Support to A Foreign Terrorist OrganizationRead the Press Release
ALEXANDRIA, Va. – Three defendants were arrested today on charges of providing material support to al-Shabaab, a designated foreign terrorist organization that is conducting a violent insurgency campaign in Somalia. Two additional defendants are fugitives in Kenya and Somalia.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John P. Carlin, Assistant Attorney General for National Security; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington, D.C. Field Office; and Frank Montoya, Jr., Special Agent in Charge of the FBI’s Seattle Field Office, made the announcement.
A superseding indictment was issued on June 26, 2014, by a federal grand jury in the Eastern District of Virginia, charging the defendants with one count of conspiracy to provide material support to a foreign terrorist organization and 20 counts of providing material support to a foreign terrorist organization. The indictment was unsealed after the following arrest warrants were executed today:
Muna Osman Jama, 34, was arrested at her home in Reston, Virginia;
Hinda Osman Dhirane, 44, was arrested at her home in Kent, Washington;
Farhia Hassan was arrested at her residence in the Netherlands;
Fardowsa Jama Mohamed is a fugitive in Kenya and the subject of a pending arrest warrant; and
Barira Hassan Abdullahi is a fugitive in Somalia and the subject of a pending arrest warrant.
If convicted, each defendant faces a maximum penalty of 15 years in prison on each count in the indictment.
The Harakat Shabaab al-Mujahidin, commonly known as al-Shabaab, is a terrorist group conducting a violent insurgency campaign in Somalia. In 2008, the U.S. government designated al-Shabaab as a foreign terrorist organization, and in February 2012, the leaders of al-Shabaab and the terrorist group al-Qa’ida publicly announced the merger of the two groups.
According to court records, defendants Muna Osman Jama and Hinda Osman Dhirane were the leaders of an al-Shabaab fundraising conspiracy operating in the United States, Kenya, the Netherlands, Somalia and elsewhere. Jama and Dhirane allegedly directed a network composed primarily of women who provided monthly payments that were coordinated, facilitated and tracked by the defendants to their conduits in Kenya and Somalia. According to court records, Jama was principally responsible for sending money to Kenya through her conduit, defendant Fardowsa Jama Mohamed, while Dhirane was primarily responsible for sending money to Somalia through her conduit, defendant Barira Hassan Abdullahi.
According to court records, the defendants would refer to the money they sent overseas as “living expenses,” and they repeatedly used code words such as “orphans” and “brothers in the mountains” to refer to al-Shabaab fighters, and “camels” to refer to trucks needed by al-Shabaab. The money transfers often were broken down into small amounts as low as $50 or $100, and the funds were intended for use by al-Shabaab insurgents operating in Somalia.
This case was investigated bythe FBI’s Washington, D.C. and Seattle Field Offices. The Justice Department’s Office of International Affairs also played an essential role in coordinating the arrests and searches with foreign authorities.
Assistant U.S. Attorney James P. Gillis and Trial Attorney Danya E. Atiyeh of the Counterterrorism Section of the Justice Department’s National Security Division are prosecuting the case in the Eastern District of Virginia. The U.S. Attorney’s Office in Seattle also provided assistance.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-230.
Tennessee Man Indicted for Illicit Sex with a MinorRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Tennessee man was indicted by a federal grand jury today for enticing a minor victim to engage in illicit sexual activity in Lawrence County, Mo.
Dylan Wade Garcia, 28, of Huntingdon, Tenn., was charged in a three-count indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that Garcia used the Internet and a cell phone between June 9 and 26, 2014, to entice a minor under the age of 17 to engage in illicit sexual activity in Lawrence County. Garcia is also charged with one count of crossing state lines for the purpose of engaging in illicit sexual activity and one count of possessing child pornography.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Aurora-Marionville, Mo., Police Department and the Southwest Missouri Cyber Crimes Task Force.
St. Louis Area Man Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – RONALD L. ROBERTS pled guilty today to charges of mail and wire fraud in connection with his obtaining more than a million dollars from lenders in what he now admits was a loan fraud scheme.
According to court documents, Roberts solicited personal loans for a fictitious real estate transaction involving property in or around Poplar Bluff, Missouri, which Roberts claimed he owned and planned to sell to Wal-Mart. In some instances, Roberts claimed that the funds were needed to buy out the interests of family members, including his half-brother, who had purportedly asserted claims against the property; in others, he claimed that it was necessary to extinguish liens or perform environmental remediation; in yet others, he claimed that one or more parties associated with the transaction were demanding additional sums to close the transaction.
Roberts usually promised lenders either that their money would be returned in a matter of days or weeks at most, usually with considerable interest, or that they would receive a portion of the profits that Roberts expected to generate from the fictitious transaction. The rate of return promised by Roberts varied from 0% to at least as much as 180%, with terms varying between a couple of weeks and a few hours.
In truth, Roberts owned a piece of property, constituting less than ten (10) acres in size, in Neelyville, Missouri, more than ten (10) miles outside of Poplar Bluff, Missouri. At the time of Roberts’s representations, the property had a market value of less than $30,000 and was encumbered by a judgment against Roberts in excess of $13 million, making the property worthless to Roberts. During the scheme, Wal-Mart had not made any offer to purchase that property, nor did it have any present plans to develop additional land in or near Poplar Bluff, where there is already an existing Wal-Mart store. Instead, Roberts employed funds given to him by lenders for his own personal use.
Roberts, of Town and Country, MO, pled guilty to three felony counts of wire fraud and one felony count of mail fraud. He appeared before United States District Judge E. Richard Webber, in St. Louis. Sentencing has been set for October 16, 2014.
Each count of mail and wire fraud carries a maximum penalty of 20 years in prison and/or fines of 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.
The case is being investigated by the Federal Bureau of Investigation and the U.S. Postal Inspection Service. Assistant United States Attorney Richard E. Finneran is handling the case for the U.S. Attorney’s Office.
Smith County Man Sentenced for Loan FraudRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 60-year-old Tyler, Texas man was sentenced to federal prison for making false statements on a loan application in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Bobby Gene Loggins pleaded guilty on Dec. 5, 2013 to making false statements to a bank and was sentenced to 51 months in federal prison on July 22, 2014 by U.S. District Judge Leonard E. Davis. Loggins was also ordered to pay restitution in the amount of $2,773,371.52.According to information presented in court, Loggins has been affiliated with Loggins Meat Company (LMC) in Tyler for more than 30 years. During most of that time, Loggins served as President and Chief Executive Officer of LMC. The company was founded in 1940 by Loggins’ father and operates as a wholesaler, retailer, and processor of meat and meat products. In March 2009, Loggins applied to Bank of Tyler for a revolving line of credit. In connection with the loan application, Loggins provided fraudulent financial information for LMC. Following approval of the loan, Loggins continued to provide false financial data when seeking advances on the credit line. Ultimately, LMC ceased operations in about August 2010.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Frank Coan.
San Jose Man Sentenced for A Copyright Infringement ConspiracyRead the Press Release
SACRAMENTO, Calif. — United States District Judge Kimberly J. Mueller sentenced Otto Godinez-Sales, 22, of San Jose, today to four years in prison for conspiracy to commit criminal copyright infringement, United States Attorney Benjamin B. Wagner announced.
According to court documents, Godinez-Sales maintained a number of warehouses in the San Jose area where he sold CDs and DVDs containing counterfeit music and movies. The music and movies on the CDs and DVDs were protected under United States copyright laws. In many instances, the copyrighted movies being trafficked by the defendants were still in theatrical release and not yet available for purchase in the home DVD market. Co-defendants Francisco Martinez-Cruz, 34, of Orland, and Soledad Garcia-Venegas, 32, of Orland, were customers at his San Jose warehouses, and they would transport the CDs and DVDs to sell at the Gonzalez Flea Market in Glenn County and the Marysville Flea Market in Yuba County. Over the course of the conspiracy, Martinez-Cruz and Garcia-Venegas were responsible for trafficking approximately 25,000 CDs or DVDs containing counterfeit copyrighted works. Martinez-Cruz was sentenced to 21 months in prison, and Garcia-Venegas was sentenced to 18 months in prison.
“This case is a testament to the success of multi-jurisdictional investigations and task force partnerships. A thorough investigation through collaboration revealed Godinez-Sales’ role in this scheme and identified his network of warehouse facilities. His criminal enterprise distributed thousands of counterfeit CDs and DVDs that were sold to unsuspecting customers throughout Northern California,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation’s Sacramento division. “Consumers are urged to question the authenticity of all high-demand products offered at significantly reduced prices. As in this case, such goods were counterfeit items produced by criminal enterprises who benefited from trusting consumer who were misled to believing the products were legitimate.”
This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento Valley Hi-Tech Crimes Task Force, which combines the efforts of 32 local, state, and federal law enforcement agencies in the Eastern District of California. Assisting in this case were the Sacramento Intellectual Property Rights Task Force, Rapid Enforcement Allied Computer Team of San Jose, Sacramento County Sheriff’s Office, Marysville Police Department, Glenn County Sheriff’s Office, and the Glenn County District Attorney’s Office. Assistant United States Attorney Matthew G. Morris is prosecuting the case.
Rogersville Business Owners Indicted for Selling $1 Million Worth of K2Read the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Rogersville, Mo., couple has been indicted by a federal grand jury for selling $1 million worth of synthetic marijuana, also known as K2, from their store.
Doy R. Case, 79, and his wife, Tressie L. Case, 67, both of Rogersville, were charged in a nine-count indictment returned under seal by a federal grand jury in Springfield, Mo., on Tuesday, July 22, 2014. That indictment was unsealed and made public today upon the arrests and initial court appearances of Doy and Tressie Case. They remain in federal custody pending a detention hearing on Friday, July 25, 2014.
The Cases own a business called Magic Dragon, 382 Redbud Street, Rogersville. According to court documents, the Cases received delivery of approximately 101,861 grams of synthetic cannabinoids between Sept. 15, 2010, and Nov. 13, 2012. They allegedly charged an average price of $10 per gram of synthetic cannabinoids; therefore, it appears they grossed approximately $1 million during this time frame. They allegedly deposited approximately $672,349 into bank accounts that they controlled.
The Cases were contacted by federal agents in August 2012, according to court documents, and told that the sale of synthetic cannabinoids was illegal. Agents gave the Cases the opportunity to voluntarily cease and desist, but they did not.
Court documents also allege that the Cases advertised their products to minor children. On at least seven occasions, they allegedly placed advertisements in high school yearbooks or with student organizations.
The federal indictment alleges that Doy and Tressie Case participated in a conspiracy between Sept. 15, 2010, and Nov. 13, 2012, to defraud the Food and Drug Administration and to defraud the public by falsely representing that a number of synthetic cannabinoid products were “herbal aromas,” “natural fragrances” or “incense” and “not for human consumption.” In reality, the indictment alleges, these substances were synthetic cannabinoids that contained compounds that were intended for human consumption as a drug. The Cases allegedly sent payments through the mail to purchase the illegal substances from several sources, which shipped their orders through a commercial carrier.
In addition to the mail fraud conspiracy, Doy and Tressie Case are charged together with participating in a conspiracy to distribute a controlled substance, three counts related to possessing a controlled substance with the intent to distribute and one count of maintaining a place for the purpose of storing and distributing a controlled substance.
The federal indictment also alleges that Doy and Tressie Case participated in a money-laundering conspiracy. According to the indictment, the Cases conspired to conduct financial transactions which involved the proceeds of unlawful activity (the mail fraud and drug-trafficking conspiracies). In addition to the conspiracy, Doy and Tressie Case are charged together in two counts of money laundering.
The indictment also contains a forfeiture allegation, which would require the Cases to forfeit to the government any property derived from the proceeds of the alleged offenses, including a money judgment of $672,349 related to the mail fraud conspiracy and a money judgment of $639,662 related to the drug-trafficking conspiracy.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Rogersville, Mo., Police Department, the Webster County, Mo., Sheriff’s Department, the Missouri State Highway Patrol, the Drug Enforcement Administration and IRS-Criminal Investigation.Rochester Woman Pleads Guilty to Social Security FraudRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Ethel Whitaker (a/k/a Ethel Gainey), 73, of Rochester, N.Y., pleaded guilty before U.S. District Judge Elizabeth A. Wolford, to theft of government funds. The charge carries a maximum penalty of 10 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Marisa J. Miller, who is handling the case, stated that the defendant obtained social security numbers in the names of both “Ethel Whitaker” and “Ethel Gainey.” Whitaker then used both social security numbers to apply for and receive social security program benefits, including Supplemental Security Income, Survivor Insurance and Retirement Insurance. As a result of her conduct, between January 1997 and April 2011, the defendant received social security benefits in the amount of $119,675, to which she was not entitled.
The plea is the culmination of an investigation on the part of Special Agents of the Social Security Administration – Office of the Inspector General, under the direction of Edward J. Ryan.
Sentencing is scheduled for October 9th, at 4:00 p.m. before Judge Wolford.Queen Anne’s County Drug Trafficker Exiled to 9 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Warren Troy Gibson, Jr., age 33, of Stevensville, Maryland, today to nine years in prison for conspiring to distribute narcotics.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Queen Anne’s County Sheriff R. Gery Hofmann III; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Colonel George F. Johnson IV, Superintendent of the Maryland Natural Resources Police; Annapolis Police Chief Michael A. Pristoop; Chief Charlie Rhodes of the Centreville Police Department; and Queen Anne’s County State’s Attorney Lance G. Richardson.
According to his plea agreement, from June through August 23, 2012, Gibson conspired with others to distribute and possess with intent to distribute cocaine hydrochloride and cocaine base in Queen Anne’s County, Maryland. Gibson helped distribute cocaine and other drugs, and made drug deals on the phone in cooperation with his coconspirators. On August 23, 2012, law enforcement officers executed a search warrant at a residence and stash location partly maintained by Gibson, and seized quantities of powder cocaine.
It was reasonably foreseeable to Gibson that between 500 grams and two kilograms of cocaine would be distributed to others during the conspiracy.
United States Attorney Rod J. Rosenstein commended the FBI, Queen Anne’s County Sheriff’s Office, Maryland State Police Maryland Natural Resources Police, Annapolis Police Department, Centreville Police Department and Queen Anne’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Michael C. Hanlon, who prosecuted this Organized Crime and Drug Enforcement Task Force case.
Probationary Buffalo Police Officer Sentenced for Growing and Selling MarijuanaRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that James Hamilton, Sr., 29, of Buffalo, N.Y., who was convicted of distribution of marijuana, was sentenced to 18 months in prison by Chief U.S. District Judge William M. Skretny.
“A uniform is only as good as the person who wears it,” said U.S. Attorney Hochul. “While the vast majority of police officers are role models for us all, this Office will not hesitate to act where, as here, a member of law enforcement violates his oath and breaks the law.”
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that on November 20, 2013, Hamilton, a probationary Buffalo Police Officer, sold a half pound of marijuana to a confidential source working with the Drug Enforcement Administration and the Erie County Sheriff’s Department. At the time of the sale, the defendant possessed his Buffalo Police issued .40 caliber Glock handgun.
Following the sale, the defendant was arrested and a search warrant was executed at his residence at 165 Floss Avenue in Buffalo. During the search, officers seized approximately 80 marijuana plants, three to four pounds of processed marijuana and a shotgun.
As a result, the defendant no longer works for the Buffalo Police Department.
The sentencing is the culmination of an investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard, and the Drug Enforcement Administration, under the direction of Jamie J. Hunt, Acting Special Agent in Charge, New York Field Division.Postal Inspector Indicted for Possession of Stolen MailRead the Press Release
SAN JOSE, Calif. — A federal grand jury in San Jose returned a three-count indictment against Quan Pham Howard, 51, of San Jose, charging him with possession of stolen U.S. mail, delay and destruction of U.S. mail, and possession with intent to distribute marijuana, United States Attorney Benjamin B. Wagner announced.
According to court documents, Howard was a Supervisory Postal Inspector working at the San Jose Processing and Distribution Center. On June 26, 2014, following an investigation and the execution of a search warrant at his house and office, Howard was arrested and charged with theft of mail.
According to the indictment, between April 9, 2012, and June 25, 2014, Howard unlawfully opened and secreted United States mail intended for various victims and including, among other things, quantities of prescription drugs. The indictment charges him with possessing a variety of items that had been stolen from the mail distribution center including: a gun scope, a silver bar, jewelry, coins, gift cards, a gun silencer, a Rolex watch and other items. Howard is also charged with possessing over 8 kilograms of marijuana with the intent to distribute.
This case is being tried in San Jose by the Eastern District of California. It is the product of an investigation by the United States Postal Service Office of Inspector General. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.
Howard is scheduled for arraignment on August 1, 2014. If convicted, Howard faces a maximum statutory penalty of five years in prison and a $250,000 fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Pittsburgh Man's Pistol Smuggling Plan Thwarted in DubaiRead the Press Release
PITTSBURGH - A Pittsburgh man pleaded guilty in federal court to a charge of smuggling goods from the United States, United States Attorney David J. Hickton announced today.
Tarek Mohamed Chok pleaded guilty yesterday to one count before Senior United States District Judge Maurice B. Cohill.
In connection with the guilty plea, the court was advised that on or about Sept. 18, 2012, Chok shipped a Springfield, Model 1911, .45 caliber pistol via FedEx from Pittsburgh, Pa., to Lebanon. The package containing the firearm was intercepted in Dubai. On the shipping declaration, Chok declared the contents of the package to be a “car lock, keys, and student documents.” When approached by agents of the Department of Homeland Security about his shipment, Chok initially lied and stated that the firearm in question, which records indicate was purchased by him, was “stolen” from him. Eventually, Chok admitted that he had, in fact, sent the firearm via FedEx, that he had lied to agents about it, and he misrepresented the contents of the package because he believed that if he had listed the true contents of the package, FedEx would not have sent the package.
Judge Cohill scheduled sentencing for Oct. 28, 2014, at 2:30 p.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Chok on bond.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
The Department of Homeland Security conducted the investigation that led to the prosecution of Chok.
Payette Man Sentenced for Purchasing A Firearm for Convicted FelonRead the Press Release
BOISE B Caleb Matthias Curtis, 29, of Payette, Idaho, was sentenced today to three years of probation for the unlawful transfer of a firearm, U.S. Attorney Wendy J. Olson announced. U.S. District Court Judge Edward J. Lodge also ordered Curtis to complete 60 hours of community service in lieu of a fine. Curtis was indicted by a federal grand jury in Boise on November 13, 2013.
According to the plea agreement, Curtis admitted that in October 2013, he agreed to purchase a .30-06 hunting rifle for his neighbor, David McAlister. Curtis knew that McAlister was prohibited from possessing firearms, due to a prior statutory rape conviction. Curtis used money provided to him by McAlister to purchase the rifle, which he then gave to McAlister. McAlister was sentenced on June 30, 2014, to three years of probation, credit for six months of jail served, and a $1,500 fine.
The case was investigated by the Payette County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Pawtucket Man Pleads Guilty to Manufacture and Distribution of Meth; Faces up to 100 Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Sean Costigan, 51, of Pawtucket, pleaded guilty today in federal court in Providence to charges of manufacturing and distributing methamphetamine. Costigan was arrested in January 2014 when DEA agents, DEA Drug Task Force agents, and Warwick and Newport Police detectives and officers executed a court authorized search of a Newport motel room rented by Costigan where they discovered materials being used for the manufacture and distribution of methamphetamine.
Costigan pleaded guilty to one count of manufacturing methamphetamine and four counts of distribution of methamphetamine, announced United States Attorney Peter F. Neronha, Warwick Police Chief Colonel Stephen M. McCartney, Newport Police Chief Gary T. Silva and Michael Ferguson, Acting Special Agent in Charge of the DEA’s New England Field Division.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Costigan admitted to the court that on four occasions, between October 25 and December 6, 2013, he sold methamphetamine to a Warwick undercover police officer for between $100 and $400 dollars. Three of the transactions occurred at a hotel in Warwick. The fourth transaction occurred at a hotel in North Smithfield.
According to information presented to the court, on January 16, 2014, DEA agents, DEA Drug Task Force agents, and Warwick and Newport Police detectives and officers executed a court authorized search of a Newport motel room rented by Costigan. Inside the room law enforcement discovered materials being used in the manufacture and distribution of meth. Members of the DEA Clandestine Laboratory Tactical Team dismantled the operation and seized multiple items associated with a methamphetamine manufacturing operation.
According to a plea agreement filed in this matter, Costigan and federal prosecutors stipulate and agree that Costigan maintained the room at the Newport motel for the purposes of manufacturing methamphetamine and that the meth lab created a substantial risk of harm to human life.
Costigan, who has been detained since his arrest on January 16, 2014, faces statutory penalties of up to 100 years in federal prison to be followed by up to lifetime supervised release, and a fine of up to $5,000,000 when he is sentenced on November 12, 2014.
The case is being prosecuted by Assistant U.S. Attorney Pamela E. Chin.
The DEA Drug Task Force is comprised of law enforcement agents and officers from DEA, Rhode Island State Police, and the Cranston, East Providence, Newport, Pawtucket, Providence, South Kingstown, Warwick and Woonsocket Police Departments.
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Contact: 401-709-5357
[email protected]Owner and Administrator of Miami Home Health Companies Pleads Guilty for Role in $74 Million Health Care Fraud SchemeRead the Press Release
A Miami resident who owned a home health care company and was the administrator of another home health care company pleaded guilty today for her participation in a $74 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Acting Special Agent in Charge Ryan Lynch of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office made the announcement.
Elsa Ruiz, 45, pleaded guilty today before U.S. District Judge Marcia G. Cooke in the Southern District of Florida to one count of conspiracy to commit health care fraud. Her sentencing is scheduled for Oct. 8, 2014.
According to court documents, Ruiz was an owner of Professional Home Care Solutions Inc. (Professional Home Care) and an administrator of LTC Professional Consultants Inc. (LTC), Miami home health care agencies that purported to provide home health and therapy services to Medicare beneficiaries. Ruiz and her co-conspirators operated LTC and Professional Home Care for the purpose of billing the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
Also according to court documents, Ruiz ran and oversaw the schemes operating out of LTC and Professional Home Care. Ruiz and co-conspirators paid kickbacks and bribes to patient recruiters, who provided patients to LTC and Professional Home Care , as well as prescriptions, plans of care (POCs) and certifications for medically unnecessary therapy and home health services for Medicare beneficiaries. Ruiz and her co-conspirators used these prescriptions, POCs and medical certifications to fraudulently bill the Medicare program for unnecessary home health care and therapy services.
From approximately January 2006 to June 2012, LTC and Professional Home Care submitted approximately $74 million in claims for home health care services that were not medically necessary and/or not provided, and Medicare paid approximately $45 million on those claims.
The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers. To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .Ocean Springs Businessman Sentenced to Serve 18 Months in Prison for Federal Program FraudRead the Press Release
Hattiesburg, Miss - Scott Walker, 34, of Ocean Springs, was sentenced today by U.S. District Judge Keith Starrett to 18 months in prison for federal program fraud and 18 months for conspiracy to commit federal program fraud, announced U.S. Attorney Gregory K. Davis and Acting FBI Special Agent in Charge Johnnie Sharp. The two sentence terms will run concurrently and will be followed by a three year term of supervised release. Walker was also ordered to pay restitution in the amount of $390,000.
Walker previously pled guilty to creating and submitting a false invoice in the amount of $180,000 to the City of D’Iberville for payment of consulting services that were never performed in connection with a $3 million grant issued to the City of D’Iberville by the Mississippi Department of Environmental Quality. Walker also pled guilty to conspiring with his father, William Walker, to divert federal grant monies in a scheme that resulted in the federal grant monies being used to unlawfully purchase Scott Walker’s personal property in Ocean Springs, Mississippi.
This case was investigated by the Federal Bureau of Investigation with assistance from the Mississippi State Auditor’s Office. It was prosecuted by Criminal Division Chief John Dowdy, Assistant U.S. Attorney Jerry Rushing and Assistant U.S. Attorney Jay Golden.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Non-Native Taos County Man Pleads Guilty to Federal Involuntary Manslaughter Charge Arising out of the Death of Taos Pueblo ManRead the Press Release
ALBUQUERQUE – Jorden Medina, 54, a non-Native man who resides in El Prado, N.M., pleaded guilty this morning to a federal involuntary manslaughter charge.
Medina was arrested on Dec. 2, 2013, on a criminal complaint charging him with killing a 28-year-old Taos Pueblo man on Nov. 30, 2013. Medina subsequently was indicted on Dec. 17, 2013, and charged with second degree murder.During today’s plea hearing, Medina pleaded guilty to an information charging him with involuntary manslaughter and admitted shooting the victim at a gas station located in Taos Pueblo. In his plea agreement, Medina stated that he was putting fuel into his truck when the victim physically attacked him, knocking him to the ground. Medina responded to the attack by retrieving a pistol from his truck and firing a single bullet at the victim and killed him.
Medina is in federal custody and will remain detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Medina faces a statutory maximum penalty of eight years in prison followed by a term of supervised release to be determined by the court.
The case was investigated by the Santa Fe office of the FBI and the Northern Pueblos Agency of the BIA’s Office of Justice Services, with assistance from the Taos Pueblo Department of Public Safety, Town of Taos Police Department and the New Mexico State Police. Assistant U.S. Attorney Paul H. Spiers is prosecuting the case.
Nine Sentenced for Filing Fraudulent BP Oil Spill ClaimsRead the Press Release
PENSACOLA, FLORIDA – Pamela C. Marsh, U.S. Attorney for the Northern District of Florida, announced today that nine individuals have been sentenced in federal court in the past two months for filing false claims with the Gulf Coast Claims Facility (GCCF) related to the 2010 BP oil spill in the Gulf of Mexico.
Sean D. Croft, 32, of Austin, Texas, was sentenced to 33 months in prison and ordered to pay $16,000 in restitution after pleading guilty to mail fraud and failure to appear for trial. He submitted a GCCF claim falsely alleging he was let go from his job at Hooters of Pensacola Beach due to the oil spill, when in fact he had worked at the Hooters on Bayou Boulevard in Pensacola and was terminated for disciplinary reasons. After being charged, Croft fled before trial and was arrested later in Texas.
Crystal C. Brown, 30, of Decatur, Georgia, pled guilty to wire fraud for filing a false GCCF claim stating she and her cleaning service lost income and employment due to the oil spill and submitting fraudulently altered employment verification forms and false income statements. Brown also pled guilty to aiding and abetting wire fraud for helping her co-defendant, Jarrad J. Knox, 29, of Fort Walton Beach, Florida, file a fraudulent GCCF claim stating he was an employee of Brown’s cleaning service and was laid off due to the oil spill, neither of which was true. Knox was sentenced to 21 months in prison and ordered to pay $7,900 in restitution and Brown was sentenced to five years of probation and ordered to pay $27,500 in restitution.
Kim Bonner, 54, of Pensacola, Florida, Angela M. Anderson, 32, of Tampa, Florida, Johnny G. Robinson, 52, of Pensacola, Alethea F. Snow, 41, of Fort Walton Beach, Bernisha M. McNabb, 57, of Fort Walton Beach, and Oran E. Dixon, 34, of Fort Walton Beach, pled guilty to conspiracy to file fraudulent GCCF claims involving an alleged construction company and cleaning service, both of which were not actually operating at the time of the spill. Robinson was sentenced to 21 months in prison and ordered to pay $56,300 in restitution, Snow was sentenced to 15 months in prison and ordered to pay $74,600 in restitution, and Dixon was sentenced to two weekends in jail as part of the terms of his five-year probation and ordered to pay $15,600 in restitution. Bonner, Anderson, and McNabb each received five years of probation and were ordered to pay $40,500, $71,900, and $43,200 respectively in restitution.
The cases resulted from investigations by the U.S. Secret Service and the Federal Bureau of Investigation and were prosecuted by Assistant U.S. Attorney Alicia Kim.
Newport Police Detective Captain Arrested for Distributing Controlled Substances and Possession of Firearm in Furtherance of Drug TraffickingRead the Press Release
GREENEVILLE, Tenn. -- James Finley Holt, 59, of Cosby, Tenn., a detective captain with the Newport Police Department, was arrested on July 23, 2014, in Newport by agents of the Tennessee Bureau of Investigation (TBI) and FBI. Holt is charged with illegal distribution of drugs and the possession of a firearm in furtherance of drug trafficking.
An initial appearance is scheduled for 10:00 a.m., Thursday, July 24, 2014, in U.S. District Court in Greeneville, before U.S. Magistrate Judge Dennis Inman.
Details of these charges are outlined in the criminal complaint and supporting affidavit on file as public records in the U.S. District Court for the Eastern District of Tennessee at Greeneville.
In summary, the affidavit alleges that Holt was selling drugs (hydrocodone and Xanax) or exchanging drugs for what had been represented to him as stolen property. On occasions he was distributing drugs from his official Newport Police Department vehicle. On one occasion, he told an individual working on behalf of law enforcement that he was going to pick up the drugs. Agents of the TBI followed him directly to the Newport Police Department and straight back to the location where Holt delivered the drugs.
Members of the public are reminded that these are only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
New Orleans Man, Gregory Stewart, Responsible for Killing Magnolia Shorty Pleads Guilty to Participating in Several Gang-related MurdersRead the Press Release
U.S. Attorney Kenneth Allen Polite, Jr. announced today that GREGORY STEWART, a/k/a “Rabbit,” 22, a resident of New Orleans, pled guilty before U. S. District Judge Nannette Jolivette Brown, to participating in a wide-ranging heroin conspiracy and several gang- related murders. Specifically, STEWART pled guilty to participating in the murder of Quelton Broussard, a/k/a “Gutter,” on April 12, 2010; the murder of Calvin Celestine, a/k/a “Plucky,” on February 6, 2011; and the murder of Gregory Keys and shooting of Kendrick Smothers on May 24, 2011. All of these murders were committed during the course of and as part of the conspiracy to distribute heroin. STEWART also pled guilty to participating in a conspiracy to use firearms in furtherance of his drug crimes and admitted that the conspiracy to distribute heroin involved 10 to 30 kilograms of heroin.
Court documents reflect that STEWART admitted to being one of the five individuals responsible for the high-profile murders of bounce-rapper Renetta Lowe, a/k/a “Magnolia Shorty” and Jerome Hampton, a/k/a “ManMan,” which occurred on December 20, 2010.
STEWART’s guilty plea to these murders and drug trafficking crimes was the culmination of a multi-year investigation of a heroin trafficking organization and violent gang that operated in an area known as the “G-Strip” in New Orleans. The G-Strip is an area encompassing the 1300 block of Gallier Street in the 9th Ward of New Orleans. Many of the members of the G-Strip were also affiliated with a gang known as the 39ers, an alliance of gang members from 3NG (Third and Galvez) and from the 9th Ward of New Orleans. To date, fifteen individuals related to the G-Strip/39ers organization have pled guilty to federal drug trafficking related offenses. Additionally, numerous members of 3NG/39ers are currently facing racketeering charges as a result of investigations done by the NOPD Multi-Agency Gang Unit (MAG) and the Orleans Parish District Attorney’s office.
For each of the murder counts, STEWART faces a maximum penalty of life imprisonment, a $250,000 fine, and up to 5 years of supervised release. On the drug conspiracy, STEWART faces a mandatory minimum of 10 years up to life imprisonment, a $10,000,000 fine, and at least 5 years of supervised release. As to the gun conspiracy, STEWART faces a maximum of 20 years imprisonment, a $250,000 fine, and up to 5 years of supervised release. Sentencing is scheduled for October 9, 2014.
“Today’s guilty plea represents another strike against those who terrorize our streets through gun violence and murder,” stated U.S. Attorney Polite. “As we have seen in the investigations that resulted in Mr. Stewart’s plea, a high level of collaboration amongst our local, state, and federal law enforcement agencies is absolutely essential to removing the most violent elements of our community from our streets.”
“This investigation serves as yet another example of law enforcement’s continued momentum in eradicating gang-related violence in the metropolitan New Orleans area,” stated Michael Anderson, Special Agent in Charge, Federal Bureau of Investigation, New Orleans Field Division.
The investigation is being conducted by the Federal Bureau of Investigation Violent Crime Task Force (FBI), which includes the New Orleans Police Department (NOPD), Jefferson Parish Sheriff’s Office, and the St. Tammany Parish Sheriff’s Office. The case is being prosecuted by Assistant United States Attorneys Sharan Lieberman, Maurice Landrieu, and Matthew Payne.
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New London Man Pleads Guilty to Federal Charge Related to 2012 HomicideRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, New London Police Chief Margaret Ackley and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that JOSE ROSADO, JR., also known as “Gugie,” 21, of New London, waived his right to indictment and pleaded guilty yesterday before U.S. District Judge Vanessa L. Bryant in Hartford to one count of committing a violent crime in aid of racketeering, and aiding and abetting the same. The charge stems from the September 2012 homicide of Javier Reyes, 36, of New London.
According to court documents and statements made in court, ROSADO was an associate of a criminal organization that distributed marijuana, cocaine and other narcotics from the “Green Garages,” a series of garage bays located as 12/14 Walker Street in New London. In the summer of 2011, the leader of the Green Garages organization was the intended victim of a murder-for-hire plot orchestrated by former members of his enterprise in an attempt to take over narcotics distribution at the Green Garages. It is alleged that the leader of the organization orchestrated the assault of Javier Reyes to maintain his leadership position. ROSADO and others were hired to carry out the assault of Reyes in exchange for cash.
On the evening of September 12, 2012, Reyes was stabbed multiple times outside of his apartment at 187 Huntington Street in New London, and died a short time later. He also had blunt force trauma to the back of his head.
Video surveillance at the time of the attack shows ROSADO, carrying a bat, and another individual, creeping toward Reyes and then running away from him about 15 seconds later.
ROSADO has been detained since his arrest on January 15, 2014. When he is sentenced, he faces a maximum term of imprisonment of 20 years.
The alleged leader of the Green Garages organization, the other individual seen in the surveillance video and the individual who allegedly recruited ROSADO have been indicted as a result of this investigation. U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. A trial is scheduled for February 2015.
This matter is being investigated by the New London Police Department and the Federal Bureau of Investigation, with the assistance of the Connecticut State Police’s Eastern District Major Crime Squad, the Connecticut Department of Correction, Homeland Security Investigations, the U.S. Secret Service and the New London State’s Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorneys Anthony Kaplan and Sarah Karwan, and Senior Assistant State’s Attorney Paul Narducci.
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[email protected]New Hartford Man Indicted for Filing False Tax ReturnsRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York announces that a federal grand jury in Syracuse has returned an indictment charging DINO F. TUCCIARONE (56, of New Hartford, NY) with filing false tax returns with the Internal Revenue Service (“IRS”). If found guilty, the defendant faces a statutory maximum sentence of 3 years and a maximum fine of $100,000.00 per count of conviction.
The indictment alleges the defendant filed false Form 1040 tax returns with the IRS for tax years 2007 through 2009. Specifically, the indictment alleges that, under the penalty of perjury, the defendant falsely underreported his income for all three tax years.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
This prosecution resulted from an investigation conducted by the Internal Revenue Service Criminal Investigation Division, Syracuse, New York. The case was prosecuted by Assistant United States Attorney Ransom P. Reynolds. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315-448-0672).
Monroe County Man Pleads Guilty to Distributing Crack CocaineRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 31-year-old Stroudsburg man pleaded guilty today before Senior U.S. District Court Judge James M. Munley to distributing crack cocaine in the Monroe County area during a seven-month time period.
According to United States Attorney Peter Smith, the defendant, Dominic Darby, admitted to distributing and possessing with intent to distribute crack cocaine from October 2013 to April 30, 2014.
Darby was charged in a criminal Information filed by the United States Attorney on July 17, 2014, following an investigation by special agents of the Federal Bureau of Investigation and the Pennsylvania State Police.
Darby faces a potential maximum sentence of 20 years in prison and a $1 million fine. Judge Munley scheduled sentencing for October 23, 2014.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Missoula Man Gets Eight Years for Bakken Construction FraudRead the Press Release
MISSOULA - Jonathan Lee Oliver, a 41-year-old Missoula resident, was sentenced to 100 months in prison for diverting money he received from customers in eastern Montana, North Dakota, and other places, and using the money to buy himself a house, several vehicles, two jet skis, a luxury motor home, a diamond engagement ring, and various other items.
On February 25, 2014, Oliver pleaded guilty to wire fraud, money laundering and structuring. In an Offer of Proof filed by Assistant U.S. Timothy J. Racicot, the government told the court that in the Fall of 2010, Oliver rented an office and warehouse space and began conducting business under the fake name of Jon Walker. He solicited payments from several victims for the construction of steel buildings, primarily in eastern Montana and North Dakota, including in the area known as the Bakken. He entered into contracts with the victims, received millions of dollars in advance payments, and completed only one steel building. Rather than build the structures, Oliver used a substantial amount of the victims' money to buy personal assets, including a down payment on a house, several vehicles, two jet skis, a luxury motor home, a diamond engagement ring, and various other items. On multiple occasions, Oliver directed his employees to tell victims that a certain phase of the construction of their building was completed in order to induce the victims to send additional installment payments, when in fact the phase had not been completed and Oliver's business lacked the materials necessary to complete the project because so many of the funds had been diverted by Oliver for personal expenditures.
The counts that Oliver pleaded to involve money he took from a victim totaling over $130,000 and Oliver's purchase of a brand-new Subaru Tribeca Limited for $33,950. Oliver also pleaded guilty to withdrawing $9,950 in cash from the bank to avoid the bank's currency transaction reporting requirements.
The Bakken is a ripe environment for fraudulent activity and Jonathan Lee Oliver saw that. Project Safe Bakken has and will continue to prosecute fraudsters like Oliver, whose greed directly harms citizens seeking to invest and grow their money in legitimate business ventures," said Michael Cotter, U.S. Attorney for the District of Montana.
At sentencing, U.S. District Court Judge Donald Molloy entered a money judgment against Oliver in the amount of $6,468,186.33. The money judgment represents the forfeiture of substitute assets and corresponds to Oliver's ill-gotten gains. The judge also sentenced Oliver to three years supervised release following his prison sentence.
The prosecution was part of Project Safe Bakken, a cooperative effort between federal and state prosecutors and federal, state, local, and tribal law enforcement agencies in Montana and North Dakota. The investigation in this case was conducted by Federal Bureau of Investigation and the Internal Revenue Service.
Members of Howard Boys Gang Convicted of Rico ConspiracyRead the Press Release
Five Flint men were convicted of RICO conspiracy yesterday afternoon in the United States District Court in Flint, Michigan, United States Attorney Barbara L. McQuade announced. The convictions followed a seven week trial in front of the U.S. District Judge Mark A. Goldsmith.
McQuade was joined in the announcement by Genesee County Prosecutor David Leyton and Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office.
The five men were convicted of participating in the Howard Boys criminal enterprise which operated from 2002 to 2012. The Howard Boys enterprise was described during the trial as a street gang whose activities included murders, attempted murders and drug dealing on the south side of Flint.
“These convictions – both state and federal - should send an important message to this community that violence will not be tolerated. It will not be tolerated by the United States Attorney’s Office, the Genesee County Prosecutor’s Office and it will not be tolerated by the people of Flint. Despite immense pressure not to testify, many from this community assisted these cases by providing information and testifying. The jury’s verdict shows that their voices were heard,” McQuade said.
“For years, the violence committed by the defendants in this case was perpetrated on the city of Flint and surrounding areas in epidemic proportions,” said Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “Ultimately, the arrest, conviction and punishment of these individuals were due, in large degree, to the assistance provided by members of the community, demonstrating that it takes a collective effort—between federal, state and local law enforcement, along with a concerned citizenry—to take back our communities from violent offenders, one neighborhood at a time. The FBI will continue to work with its law enforcement partners and the community as a whole to aggressively combat violent crime.”
These convictions follow convictions which were obtained by the Genesee County Prosecutor’s Office in state court for additional members and associates of the Howard Boys.
“For the better part of a decade, the members of this gang reigned terror on the streets of Flint with their criminal enterprise," said Genesee County Prosecutor David Leyton. "But justice has prevailed and these defendants will now pay their debt to society behind closed walls, steel bars, and barbed wire fences," he said.
“We will continue to work together to punish those who have committed these crimes. Ultimately, however, we will not be successful unless we can prevent these crimes from happening in the first place,” McQuade added.
The case included crimes and investigations from as early as 2002. The federal case was investigated by the Genesee County Safe Streets Task Force, which is comprised of agents from the FBI and officers from the Flint Police Department and the Michigan State Police. Agents from the Bureau of Alcohol, Tobacco and Firearms (ATF) and the Drug Enforcement Administration (DEA) as well as officers from the Genesee County Sheriff’s Department participated in the investigation and trial as well.
In addition to the convictions for RICO conspiracy, the jury convicted the five defendants of the following crimes:
Alexandra Norwood
- Murder in aid of racketeering
Jatimothy Walker
- Murder in aid of racketeering
Jonathan Walker
- Murder in aid of racketeering
- Attempted murder in aid of racketeering
- Use and discharge of a firearm during and in relation to a crime of violence
Johnathan Oldham
- Murder in aid of racketeering
- Attempted murder in aid of racketeering – two counts
- Use and discharge of a firearm during and in relation to a crime of violence – three counts
- Distribution of cocaine base – six counts
- Possession of a short barreled firearm
- Possession of a firearm with an obliterated serial number
- Dealing in firearms without a license
Leon Gills
- Attempted murder in aid of racketeering – two counts
- Use and discharge of a firearm during and in relation to a crime of violence
The five men are facing up to life in prison for their convictions on the RICO conspiracy charge. Norwood, Oldham, and Jatimothy and Jonathan Walker face mandatory life in prison for their respective murder in aid of racketeering convictions.
In addition to those convicted at trial six men had previously pleaded guilty to RICO conspiracy in federal court. Those six were:
Declyde Brewton
Willie Chambers
Sean Cunningham
Markus Evans
Malcom Evans
Carvell GordonAmong those convicted in the Genesee County Circuit Court were:
Paki Bonner
- Felonious assault
- Felony firearm
Taron Brown
- Possession of a short barreled rifle
- Carrying a concealed weapon
- Possession of cocaine
Jamel Cheeks
- Second degree murder
- Felony firearm
Roderick Dudley
- Manslaughter
- Felon in possession of a firearm
James Elbert
- Delivery of cocaine
- Carrying a concealed weapon
Carvell Gordon
- Second degree murder
- Felony firearm
Shawn Gardner
- Second degree murder
Ricco Holmes
- Second degree murder – two counts
- Felony firearm – two counts
Rodrick Jackson
- Assault with intent to do great bodily harm
- Felony firearm
Charles Orr
- Delivery of marijuana
Terrell Roche
- First degree murder
- Felony firearm
- Second degree arson
Darryl Scott
- Second degree murder
Eddie Williams
- Manslaughter
The federal case was prosecuted by the Flint Branch of the United States Attorney’s Office.
Maryland Woman Found Guilty of Voluntary Manslaughter in Fatal Crash That Took Place in 2010 Near Dupont Circle- She Left the Scene After Hitting the Victim -Read the Press Release
WASHINGTON - Jorida Davidson, 34, of Chevy Chase, Md., was found guilty by a jury today of voluntary manslaughter for causing a traffic crash in October 2010 that killed a woman near Dupont Circle, U.S. Attorney Ronald C. Machen Jr. announced.
The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Lynn Leibovitz scheduled sentencing for Sept. 19, 2014.
Davidson was found guilty in June 2011, after an earlier jury trial, of charges of negligent homicide, leaving the scene of a collision involving injury, and driving while under the influence of alcohol. That jury was unable to reach a verdict on a charge of voluntary manslaughter, leading to a retrial this month on that specific charge. In the earlier case, Davidson was sentenced to a total of three years and nine months in prison, and she is now serving that time.
According to the government’s evidence, on Oct. 7, 2010, at about 1:30 a.m., Davidson was operating a 2000 Lexus sport utility vehicle heading northbound on Connecticut Avenue NW, just south of Dupont Circle. She was driving in a lane that would take her into a tunnel that goes under Dupont Circle. At almost the last possible instant, Davidson rapidly changed lanes to avoid going into the tunnel, shifting to a non-tunnel lane on Connecticut Avenue.
At about the same time, the victim, Kiela Ryan, 24, was exiting from a legally parked car on the right side of the street. Davidson hit Ms. Ryan - making no attempt to brake or sound her horn - and then kept driving. An eyewitness got on a bicycle, pursued Davidson’s vehicle and observed the defendant and made a mental note of her car’s tag number.
Davidson, meanwhile, continued driving to her condominium building in Chevy Chase, Md. Police from Montgomery County, Md., found her in the basement garage there, sitting in her vehicle, at about 2:30 a.m. The right front headlight of the vehicle was damaged. The ignition was off, and Davidson had the keys to the Lexus in her hand. She smelled of alcohol and claimed not to know what had happened.
After she was struck, Ms. Ryan was taken to a hospital, where she later died.
In announcing this week’s verdict, U.S. Attorney Machen commended those who worked on the case from the Metropolitan Police Department (MPD). He also cited the efforts of the Montgomery County, Md. Police and the District of Columbia Office of the Chief Medical Examiner. In addition, he acknowledged the work of those who handled the case in the U.S. Attorney’s Office, including Paralegal Specialist Sandra Lane; Information Technology Specialists Anisha Bhatia and Aneela Bhatia; David Foster and Marcia Rinker, of the Victim/Witness Assistance Unit, and Interns Brian Ganjei and Jacob Hjelmaas. He also expressed appreciation for the assistance provided by Assistant U.S. Attorneys John Mannarino and Lauren Bates of the office’s Appellate Division. Finally, he praised the work of Assistant U.S. Attorneys Michael Liebman and Edward O’Connell, who investigated and prosecuted the case.
14-171Manhattan U.S. Attorney Charges 27 in the Fordham/Kingsbridge Neighborhoods of the Bronx, Including 20 Members and Associates of the Trinitarios Street Gang, with Narcotics and Firearms OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, William J. Bratton, the Commissioner of the Police Department for the City of New York (“NYPD”), James J. Hunt, the Acting Special Agent-in-Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), Thomas Cannon, the Special Agent-in-Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and James T. Hayes, Jr., the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), announced charges today against 27 individuals who sold narcotics and used guns in the Fordham and Kingsbridge areas of the Bronx, 20 of whom were members and associates of the Trinitarios street gang (the “Trinitarios” or the “Gang”).
Manhattan U.S. Attorney Preet Bharara said: “As alleged, for approximately five years, members and associates of the Trinitarios maintained a vise-like grip on narcotics trafficking in the Fordham and Kingsbridge areas of the Bronx, and controlled their territory through violence. Gangs like the Trinitarios are a cancer on New York’s neighborhoods – both in the physical harm they inflict and the atmosphere of despair they create. Today’s arrests again demonstrate this Office’s commitment to eradicating the scourge of gangs throughout the Southern District of New York and to giving back to residents the peaceful enjoyment of their communities.”
NYPD Police Commissioner William J. Bratton said, “Gangs and illegal drug trafficking compromise the quality of life in our communities. Thanks to the collaborative efforts of the investigators and prosecutors involved in this case, their operation has been shut down and they will be brought to justice.”
DEA Acting Special Agent-in-Charge James J. Hunt said: “Residents of Fordham and Kingsbridge areas of the Bronx were unwilling victims of gun violence and intimidation imposed by the Trinitarios gang’s drug operations. This operation is the epitome of law enforcement collaboration between the US Attorney’s Office Southern District of New York, New York City’s Finest, local and federal law enforcement to combat gang violence and reclaim these neighborhoods from drug trafficking.”
ATF Special Agent-in-Charge Thomas Cannon said: “The arrests today mark the latest collaborative efforts of law enforcement against the scourge of gang violence, in particular the alleged criminal activities of members and associates of the Trinitarios. This investigation, which spans many years and has resulted in the arrests of over 100 gang members, continues to uncover the wanton violence and extensive narcotics trafficking this criminal organization and its associates committed with impunity on the streets of New York. The ATF is grateful to our law enforcement partners at the DEA, HSI, the NYPD and the U.S. Attorney’s Office for their investigative focus and dedication throughout. Today, New York City residents can rest knowing that members of the Trinitarios responsible for victimizing the citizens of New York City and beyond have been brought to justice.”
ICE HSI New York Special Agent-in-Charge James T. Hayes, Jr. said: “Today’s arrest disrupt the illegal drug trafficking and violence of TREY 18, a particularly dangerous contingent of the Trinitarios criminal street gang. HSI is committed to working collaboratively across all levels of law enforcement to combat the violence and chaos caused by transnational criminal organizations such as the Trinitarios."
Two Indictments (“Indictment One” and “Indictment Two”) and a Complaint were unsealed today in Manhattan federal court.
According to Indictment One, from approximately 2009 to the present, the Trinitarios operated in the Fordham and Kingsbridge neighborhoods of the Bronx, among other locations. The Trinitarios operating in these neighhorhoods during this time period were members of two related “sets,” or factions of the Gang, called the “18 Treys” and “Greenbridge.” Members of the 18 Treys and Greenbridge sets, and their associates, committed acts of violence, such as shootings, against rival gangs – such as the “Eden Boys” gang – in order to protect their drug-trafficking operation, and to protect fellow members and associates of the Trinitarios. Members and associates of the 18 Treys and Greenbridge sets controlled drug trafficking in the Fordham and Kingsbridge neighborhoods of the Bronx. ANDY SOSA, a/k/a “Sosa Gucci Prada,” and NELSON VERAS, a/k/a “Monkey,” a/k/a “Monkey White,” were leaders of the Trinitarios in these neighborhoods. MICKEY VALDEZ, a/k/a “Mikey,” was one of the shooters on behalf of the Gang, enforcing the Gang’s control over these neighborhoods, as well as the Gang’s drug trafficking, through violence.
ANDY SOSA, a/k/a “Sosa Gucci Prada,” MICKEY VALDEZ, a/k/a “Mikey,” NELSON VERAS, a/k/a “Monkey,” a/k/a “Monkey White,” OSCAR ALMANZAR, a/k/a “Heavy,” JIMMY KELLY, AKBAR HUSSAIN, a/k/a “AK,” DARWIN AYALA, a/k/a “Fatulo,” JOSHUEL RODRIGUEZ, a/k/a “Alpa,” MIGUEL CARELA, a/k/a “Bone,” a/k/a “Bonet,” JUSTIN RAMIREZ, a/k/a “E.T.,” JAMES PAULINO, LUCAS CHAJECKI, a/k/a “Luc,” OMAURIS CABRERA, a/k/a “Oh Boy,” EDWIN MERCEDES, a/k/a “Mela,” a/k/a “Melasas,” CHRISTOPHER PEREZ, a/k/a “Flaco,” ARGENIS RODRIGUEZ, ISMEAL VASQUEZ, a/k/a “Ish,” MICHAEL ALVARADO, a/k/a “Dirt,” JORGE ARTILES, and ARGENIS HENRIQUEZ, a/k/a “Shysty,” are charged in Indictment One with conspiring to sell cocaine, heroin, crack, marijuana, oxycodone, and suboxone. SOSA, VERAS, RODRIGUEZ, CARELA, and RAMIREZ are also charged with carrying, brandishing, and discharging a firearm, and aiding and abetting the same, in connection with the charged narcotics conspiracy.
In Indictment Two, FRANCIS SANTOS, a/k/a “Lucky,” MANUEL SANTOS, and RALPHAEL GERMAN, a/k/a “Capo,” are charged with selling cocaine and marijuana in the vicinity of Andrews Avenue in the Bronx.
In the Complaint, SAGE PEREZ, a/k/a “Mango,” DANIEL BERROA, a/k/a “Bucks,” YAMIL LUNA, a/k/a “Still,” and JULIAN REYNOSO, a/k/a “Juju,” are charged with selling marijuana in the vicinity of West Kingsbridge Road in the Bronx.
During the arrests, agents and officers seized, among other evidence, prescription pills, heroin, and narcotics packaging paraphernalia. To date, in this case, agents and officers have seized, among other evidence, numerous firearms with ammunition, two machetes, multiple knives, and quantities of marijuana, cocaine, heroin, and ecstasy.
In a coordinated strike, 19 defendants were arrested in New York late last night and early this morning. They will be presented later this afternoon in Manhattan federal court. OMAURIS CABRERA is already in federal custody on a separate narcotics charge, and remains in custody. FRANCIS SANTOS, OSCAR ALMAZAR, EDWIN MERCEDES, and ARGENIS HENRIQUEZ are already in custody on state charges. As of the time of this press release, the following defendants are still being sought: Nelson Veras, Michael Alvarado, Jorge Artilles, Justin Ramirez, Argenis Rodriguez, Lucas Chajecki, and Manuel Santos. A chart identifying each defendant, the charges, and the maximum penalties is attached to this release. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
The indicted cases are assigned to U.S. District Judges Shira A. Scheindlin and Victor Marrero.
Today’s charges stem from a long-term investigation, “Operation Patria,” conducted by federal and local law enforcement officers working with the U.S. Attorney’s Office for the Southern District of New York. The charges unsealed today come approximately two years after the filing of the initial indictment in this case, which charged 50 members and associates of the Trinitiarios Gang with racketeering, narcotics, and firearms offenses, and approximately one year after the superseding indictment, which charged 26 additional defendants with nine murders. A total of 104 defendants have been charged in this case between the original indictment and the charges unsealed today. Aside from those defendants charged today for the first time in this case, all but 18 of those defendants have already been convicted at trial or by guilty plea.
In addition, in 2009 and 2010, this Office charged a combined 43 members and associates of the Manhattan faction of the Trinitarios Gang with racketeering, murder in aid of racketeering, conspiracy to commit murder in aid of racketeering, assault and attempted murder in aid of racketeering, narcotics conspiracy, and firearms offenses. All of those individuals have pleaded guilty to charges associated with that case, including the May 2012 guilty pleas of Jonathan Feliz, who was alleged to have been the leader of the Manhattan faction of the Trinitarios Gang, to a mandatory minimum term of 30 years in prison for racketeering offenses committed in connection with his leadership of the Gang, and Louinsky Minier, also one of the Gang’s leaders, to charges related to the November 23, 2006, murder of Roy Abreu, which occurred on 162nd Street and Broadway in Manhattan.
Since 2009, this Office has charged at least a combined 147 members and associates of the Trinitarios Gang, including Leonides Sierra, a/k/a “Junito,” the Gang’s national leader, who pled guilty.
Mr. Bharara praised the outstanding investigative work of the DEA, the NYPD, the ATF, and HSI/ICE. He added that the investigation is continuing.
The Office's Violent and Organized Crime Unit is overseeing the case. Assistant U.S. Attorneys Rachel Maimin and Justina Geraci are in charge of the prosecution.
The charges contained in the Indictments and Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Click here to view chart(s)
U.S. v. Daniel Berroa et al Complaint
U.S. v. Francis Santos et al. Indictment
U.S. v. Andy Sosa et al. IndictmentLeader of International Meth Trafficking Ring SentencedRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Heriberto Albarran Caro, aka “Colorin”, 36, born in Chihuahua, Mexico, but residing illegally in Texas and Colorado, was sentenced in U.S. District Court today to 210 months’ imprisonment for leading an international drug trafficking conspiracy that brought approximately six kilograms of crystal methamphetamine from the southwestern U.S. to the Cincinnati area between July and September 2013.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and James V. Allen, Acting Special Agent in Charge, Drug Enforcement Administration (DEA), announced the sentence imposed today by Chief U.S. District Judge Susan J. Dlott.
“The government notes that Caro orchestrated the transport and delivery of approximately six kilograms of what DEA advises is the purest crystal methamphetamine ever seized in the Southern District of Ohio,” Assistant U.S. Attorney Karl Kadon told the court prior to today’s sentencing hearing.
DEA agents and task force officers arrested Caro and four other defendants – Bernardo Olivares-Cepeda, 36, Corpus Christi, Texas; Jose Ayvar-Ramos, 36, born in San Pedro, Mexico but residing illegally in Texas and Oklahoma; Alberto Sanchez, 37, born in Caahuila, Mexico but residing illegally in Texas; and Ivan De Los Santos, 24, born in San Pedro, Mexico but residing illegally in Texas – at a Cincinnati-area hotel in September 2013 as a result of an investigation into a drug trafficking organization operating in Texas, Colorado, Mexico and Ohio. All five defendants pleaded guilty. Olivares-Cepeda was sentenced to 200 months in prison. Jose Ayvar-Ramos was sentenced to 188 months in prison. De Los Santos was sentenced today to 60 months in jail followed by three years of supervised release. Sanchez is scheduled for sentencing on September 18.
According to court documents, Caro obtained the methamphetamine, as well as quantities of cocaine and marijuana, from unknown Mexican sources of supply with ties to the Gulf Cartel and the Zetas. Ayvar-Ramos arranged to bring the vehicle containing the meth into southern Ohio in September 2013, accompanied by a woman and a child. Ayvar-Ramos hired Sanchez and De Los Santos to perform counter-surveillance to protect against the detection of the conspiracy by law enforcement.
U.S. Attorney Stewart commended the investigation by the DEA and agencies participating in the DEA Task Force including the Cincinnati Police Department, as well as the Ohio State Highway Patrol and the DEA office in Colorado Springs who assisted in the investigation. He also commended Assistant U.S. Attorney Karl Kadon, who represented the United States in the case.
###Las Vegas Man Sentenced to 12+ Years in Federal Prison for Possessing Firearms and Dealing CocaineRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man well-known to local police because of his lengthy criminal history and street gang affiliations, was sentenced today to 155 months in federal prison and five years of supervised release, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Ryan Walton, aka Ryan McLemore, 32, of Las Vegas, was sentenced by U.S. District Judge Andrew P. Gordon. Walton pleaded guilty on April 23, 2014, to three counts of possession of a firearm by a convicted felon, two counts of possession of cocaine with intent to distribute, and one count of use or possession of a firearm in relation to a drug trafficking offense. Walton, who has been connected to the Las Vegas street gang known as the Gerson Park Kingsmen, has had four drug convictions, four firearm-related convictions, and three violent crime convictions in Clark County, Nev. since 2001.
“This case is an excellent example of how we are working together with our federal and local law enforcement partners and the District Attorney’s Office to identify dangerous and recidivist felons,” said U.S. Attorney Bogden. “Despite numerous, previous felony convictions, the defendant continued to endanger the community by possessing firearms in connection with violence and drug dealing. Thanks to our Project Safe Neighborhoods program partnerships and the Safe Streets Task Force, this defendant will no longer be a threat to our community.”
According to the defendant’s guilty plea agreement, three of the counts of conviction resulted from an incident on Sept. 26, 2007, when Las Vegas Metropolitan Police Department (LVMPD) detectives executed a search warrant at his residence and found cocaine, drug paraphernalia, and a rifle. Two more counts of conviction resulted from incidents on Dec. 22 and Dec. 27, 2010, in which LVMPD detectives and Nevada Division of Parole and Probation Officers executed a search of the vehicle Walton drove, and found two semi-automatic handguns and several loaded extended ammunition magazines, body armor, cocaine, marijuana, and drug distribution paraphernalia. The last count of conviction resulted from an incident on Aug. 8, 2012, when North Las Vegas Police Department Officers made contact with Walton as he was driving with a suspended license, and found two semi-automatic handguns in the vehicle, both of which had been reported as stolen.
This case was investigated by the FBI, the Las Vegas Metropolitan Police Department and the North Las Vegas Police Department, as part of the Safe Streets Task Force and Project Safe Neighborhoods program. The case was prosecuted by Assistant U.S. Attorney Cristina D. Silva.Lakeland Convicted Felon Found Guilty of Possessing A FirearmRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that a federal jury today found Ronald Deandrea Solomon (29) guilty of being a felon in possession of a firearm. He faces a minimum mandatory penalty of 15 years, up to life in federal prison. Solomon was indicted on April 17, 2014.
According to testimony presented at trial, law enforcement officers made consensual contact with Solomon and a group of other men hanging out in the parking lot of a Lakeland apartment building. When law enforcement drove into the complex, they observed Solomon walk away from the group, remove a firearm from his waistband and toss it under a nearby vehicle. At the time of the incident, Solomon was a previously convicted felon and therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Stacie B. Harris.
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.
Jury Finds State Prison Guard Lied to Federal Agents Trying to Locate A FugitiveRead the Press Release
PITTSBURGH – Ralph Currington, a 43-year-old former state prison guard in Pittsburgh, was convicted at the conclusion of a federal jury trial for making false statements and representations to United States Marshals Service deputies who were trying to locate a fugitive who was wanted for heroin trafficking, United States Attorney David J. Hickton announced today.
On Sept. 23, 2013, Currington was interviewed by Deputy United States Marshals who were attempting to locate a fugitive for whom there was an outstanding federal arrest warrant for heroin trafficking. During the interview, Currington made false statements and representations regarding the last contact he had with the fugitive, the last time he saw the fugitive, and his knowledge of the location of the fugitive. It is unlawful to make such false statements to a federal law enforcement officer. As was explained by testimony during the trial, Currington’s false statements could have significantly misdirected the investigation into the location of the fugitive. Currington was a state prison guard at the time the false statements were made.
The law provides for a maximum total sentence of up to five years in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The United States Marshals Service and the Drug Enforcement Administration conducted the investigation leading to the convictions in this case.
Jury Delivers Verdicts in Ticket Fixing TrialRead the Press Release
PHILADELPHIA – A federal jury today delivered its verdicts against seven defendants charged in a ticket fixing conspiracy involving the former Philadelphia Traffic Court. Jurors found three defendants - Michael Lowry, Robert Mulgrew, and Thomasine Tynes – guilty of committing perjury before the federal grand jury and defendant Willie Singletary guilty of lying to the FBI when questioned about ticket fixing at Traffic Court. Three defendants – Michael Sullivan, Robert Moy, and Mark A. Bruno – were found not guilty.
Co-defendants H. Warren Hogeland, Kenneth Miller, Fortunato Perri, William Hird, and Henry P. Alfano previously pleaded guilty.
“We respect the jury’s verdict in this case and will continue our efforts to root out corruption in Philadelphia and this district,” said United States Attorney Zane David Memeger. “We are pleased that the jury convicted these former judges of the serious offenses of lying under oath and lying to the FBI.”
Sentencing hearings have not yet been scheduled. Each defendant faces a maximum possible statutory sentence of not more than five years and/or a fine.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Denise S. Wolf and Anthony J. Wzorek.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Jury Convicts Alamo Woman on Multiple Firearms ChargesRead the Press Release
BROWNSVILLE, Texas - Yadira Garcia, 35, has been convicted of all six counts of making false statements on firearm records, announced United States Attorney Kenneth Magidson along with Robert W. Elder, special agent in charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). A federal jury convicted Garcia, of Alamo, late yesterday following two days of trial and approximately 30 minutes of deliberation.
In August 2013, Garcia purchased five assault rifles over a six-day period from two federally licensed firearms dealers located in Harlingen and McAllen and paid more than $5,000 in cash. Within the same week, Garcia attempted to buy two more rifles and was denied sale due to the suspicion of straw purchasing the firearms.
In connection with the purchases, Garcia executed three different Firearms Transaction Records (4473 Forms) which must be filled out when a person purchases a firearm from a Federal Firearms Licensee (FFL). On all three forms, Garcia certified she was the actual buyer and provided an address in Pharr.
Garcia admitted to agents that she purchased the rifles and claimed she had done so using bingo winnings. However, Garcia gave inconsistent statements regarding the whereabouts of those firearms. She initially claimed they were with a relative, then changed her story and indicated they were stashed with a friend whose name, location and contact information she could not provide. Garcia purchased three AR-15 and two AK-47 style rifles, considered “weapons of choice” by drug trafficking organizations in Mexico. One of the AK-47s was recovered by Mexican law enforcement in Reynosa, Tamaulipas, Mexico on Aug. 27, 2013, only 20 days after she had Garcia purchased it. Garcia admitted she lied about her current residence address on her signed 4473 forms.
U.S. District Judge Andrew S. Hanen, who presided over the trial, has set sentencing for Oct. 27, 2014. At that time, she faces up to five years in federal prison and a $250,000 fine for each count of conviction. She was permitted to remain on bond pending that hearing.
ATF investigated. Assistant United States Attorneys David A. Lindenmuth and Carrie Wirsing are prosecuting the case.
Joplin Man Indicted for Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man was indicted by a federal grand jury today for receiving and distributing child pornography over the Internet.
Frank Edwin Ness, 44, of Joplin, was charged in an indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Ness on July 17, 2014.
Today’s indictment alleges that Ness received and distributed child pornography over the Internet between Jan. 1, 2004, and July 16, 2014.
According to an affidavit filed in support of the original criminal complaint, law enforcement officers executed a search warrant at Ness’s residence on July 16, 2014, and seized his desktop computer. Investigators found at least 124 videos containing child pornography when they previewed the computer, the affidavit says.
The indictment also contains a forfeiture allegation, which would require Ness to forfeit to the government any property used to commit the alleged offense, including a desktop computer.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cyber Crimes Task Force and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Joplin Couple Indicted for Sexual Exploitation of Another Child VictimRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the wife of a Joplin, Mo., man who was previously indicted on child pornography charges was indicted along with her husband by a federal grand jury today for the sexual exploitation of a second child victim.
James Hajny, 49, and his wife, Gina Hajny, 39, both of Joplin, were charged in a four-count indictment returned by a federal grand jury in Springfield, Mo. Today’s superseding indictment replaces the original indictment returned on June 10, 2014. The superseding indictment adds Gina Hajny as a co-defendant and charges both defendants with an additional count of sexual exploitation of a minor.
James and Gina Hajny are each charged in the additional count. Today’s indictment alleges that they used a minor, identified as Jane Doe #2, to produce child pornography.
Today’s superseding indictment also contains three counts from the original indictment. The indictment alleges that James Hajny used a minor victim, identified as “Jane Doe #1,” to produce child pornography in May 2014. James Hajny is also charged with distributing pornographic images of Jane Doe #1 over the Internet between Dec. 12, 2013, and May 12, 2014. The indictment also charges James Hajny with possessing child pornography on May 19, 2014.
The indictment contains a forfeiture allegation, which would require James and Gina Hajny to forfeit to the government any property used to commit the alleged offenses, including a laptop computer, two tablet computers, two cell phones, an iPod and a digital camera.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and the Joplin, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Jamaican National Convicted of Marriage FraudRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Nerene Erica Harrison (32, St. Ann’s Bay, Jamaica) guilty of marriage fraud. Harrison faces a maximum penalty of 5 years in federal prison. Her sentencing hearing is scheduled for October 23, 2014. Harrison was indicted on November 13, 2013, along with Robert Kenneth Scott Cruz.
According to testimony and evidence presented at trial, Harrison, a Jamaican national, came to the United States in 2007 on a temporary work visa. After her visa expired, Harrison offered Cruz, a United States citizen, $6,000 to marry her. They were married on August 15, 2011 and subsequently petitioned for Harrison to receive lawful permanent resident status based on the marriage.
Cruz pleaded guilty on March 27, 2014. He faces a maximum penalty of 5 years in federal prison. A sentencing hearing has been set for November 11, 2014.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and United States Citizenship and Immigration Services (USCIS). It is being prosecuted by Assistant United States Attorney Carlton C. Gammons and Josephine W. Thomas.
If You Believe You Are A Victim of the Alleged Fraud Scheme Involving TelexFree, Please Fill Outthe Questionnaire at the Link Below, so Your Claim Can Be ReviewedRead the Press Release
Telexfree Founders Indicted on Charges of Running a Massive Pyramid SchemeBoston - James M. Merrill and Carlos N. Wanzeler, principals of TelexFree, Incorporated, and related entities, were indicted today for wire fraud and conspiracy to commit wire fraud.
Merrill, 53, of Ashland, Mass., and Wanzeler, 45, of Northborough, Mass., were charged by a federal grand jury in a nine-count indictment filed in U.S. District Court in Worcester, Mass.
According to the indictment, TelexFree, Inc., and TelexFree LLC (collectively, “TelexFree”) provided “voice-over-internet-protocol” (“VOIP”) telephone services that allowed customers to use the Internet to make phone calls. The indictment alleges, however, that TelexFree actually operated as a pyramid scheme, in which its ongoing operations were supported, not by actually selling TelexFree’s VOIP product, but by bringing in a constant stream of new investor dollars. Between early 2012 and March 2014, TelexFree purported to aggressively market its VOIP service by recruiting thousands of “promoters” to post ads for the product on the Internet. Each promoter was required to “buy in” to TelexFree at a certain price, after which they were compensated by TelexFree, under a complex compensation structure, on a weekly basis so long as they posted ads for TelexFree’s VOIP service.
It is further alleged that over the course of the fraud TelexFree derived only a fraction of its revenue from sales of VOIP service and the vast majority of it from new people buying into the scheme, and so TelexFree was able to pay the returns it had promised to its existing promoters only by bringing in money from newly-recruited promoters.
The indictment includes eight charges of wire fraud, based on Merrill, in December 2013, wiring about $10,000,000 in TelexFree funds to personal accounts belonging to him and Wanzeler. The indictment also specifies approximately 70 assets to be forfeited as proceeds of the alleged fraud scheme, or assets traceable to such proceeds, including approximately $140,000,000 seized from TelexFree’s accounts and various real assets, such as homes, condominiums, cars and two boats.
The charging statute provides a sentence of no greater than 20 years in prison on each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors. Merrill was previously arrested on similar charges on May 9, 2014, and remains released on bail. A federal arrest warrant was issued today for Wanzeler, who is a fugitive.
United States Attorney Carmen M. Ortiz, Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Cory Flashner and Andrew Lelling of Ortiz’s Worcester Branch Office and Economic Crimes Unit, respectively. The United States Attorney’s Office received valuable assistance from the Securities & Exchange Commission in the course of investigating this case.
http://www.fbi.gov/stats-services/victim_assistance/seeking-victim-information/telexfree-inc.-case
The details contained in indictment are allegations. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Go here for Indictment information
Hudson County, N.J., Man Charged with Production and Distribution of Child PornographyRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was charged today for allegedly posing as a teenage boy to solicit underage females online to produce images of themselves engaged in sexually explicit conduct and then distributing those images to others, U.S. Attorney Paul J. Fishman announced.
Erik Vanderbeck, 47, of Bayonne, New Jersey, was charged by complaint with one count of sexual exploitation of a child and one count of distribution of child pornography. He is scheduled to appear in Newark federal court today before U.S. Magistrate Judge James B. Clark III.
According to the Complaint filed in Newark federal court:
Vanderbeck allegedly met various minor females through online chat applications and in Internet chat rooms while pretending to be a teenage boy. Over the course of their correspondence, Vanderbeck would send the girls nude images and ask them to send him nude images of themselves. Once Vanderbeck received nude images, he would threaten to kidnap the victim or post her nude images online unless she sent more. When one of the victims threatened to report Vanderbeck to the authorities, he replied, “The cops will never catch me.” Vanderbeck also allegedly used nude images that he received from one minor victim to pretend to be a teenage girl named “Megan” in chats with other individuals online. Vanderbeck also distributed sexually explicit images, which he claimed to be of Megan.
Law enforcement officers executed a search warrant at Vanderbeck’s home in Bayonne on July 22, 2014. They recovered computer equipment belonging to Vanderbeck containing images appearing to be of child pornography.Law enforcement officers have interviewed several of Vanderbeck’s victims, who said they produced images of child pornography out of fear and in response to his threats.
The charge of sexual exploitation of a child carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison and a $250,000 fine. The charge of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 20 years, and a $250,000 fine.
U.S. Attorney Fishman credited postal inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates in Newark, and the Bayonne Police Department, under the direction of Chief Drew Niekrasz, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
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Defense counsel: Carol Gillen, Esq., Assistant Federal Public Defender, Newark
Vanderbeck, Erik Complaint
Guilty Plea in Sex Trafficking CaseRead the Press Release
PHILADELPHIA – Christian Dior Womack, a/k/a “Gucci Prada,” 30, of Chester, PA, pleaded guilty today to all counts in connection with sex trafficking females for prostitution. Womack decided to plead guilty during jury selection. He operated a prostitution venture, in Philadelphia and elsewhere, recruiting young females, one of whom was a minor, to work as prostitutes. He also engaged in acts of physical violence, coercion, and threats of physical harm to maintain the participation of the females. He pleaded guilty today to sex trafficking of a minor and sex trafficking by force.
Charged with Womack was Rashidah Brice, a/k/a “Camille,” a/k/a “Milly,” 24, also of Chester, PA. As part of their venture, Womack and Brice allegedly created internet advertisements in which they advertised these females as available for purchase for purposes of prostitution. The advertisements featured pictures of the females scantily clad, and provided a phone number to call to arrange a meeting with the females. Brice previously pleaded guilty.
A sentencing date for Womack has not yet been scheduled. A sentencing hearing for Brice is scheduled for August 21, 2014. Both defendants face a mandatory minimum sentence of 15 years in prison with a maximum possible sentence of life in prison, five years of supervised release, and possible fines.
The case was investigated by the FBI, the Philadelphia Police Department Special Victims Unit, and the Tinicum Township Police Department. It is being prosecuted by Assistant United States Attorneys Michelle Morgan and Melanie Babb Wilmoth.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Georgia Woman Pleads Guilty in Mystery Shopper ScamRead the Press Release
PITTSBURGH - A Georgia woman pleaded guilty in federal court to a charge of fraud conspiracy, United States Attorney David J. Hickton announced today.
Monica Mason, 49, of Lilburn, Ga., pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, Mason was involved in a Nigerian “Mystery Shopper” scam whereby her coconspirator Shawn Foote knowingly prepared and addressed fraudulent mail containing counterfeit instruments to victims, who believed they were acting as mystery shoppers. The victims unwittingly received the counterfeit commercial and Postal money orders and checks and cashed them to make small purchases for purposes of evaluating the commercial services provided. They then wire transferred excess funds back to Mason, Foote, and others. After these transactions, the money orders and checks were returned as counterfeit by the victims’ banks and they were left to repay the bank from their own funds.
Judge Bissoon scheduled sentencing for Nov. 6, 2014 at 10 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and Homeland Security Investigations conducted the investigation that led to the prosecution of Monica Mason.
Friendswood Man Convicted of Receipt and Possession of Child PornographyRead the Press Release
GALVESTON, Texas - Miguel Angel Macias, 53, formerly of Friendswood, has entered a guilty plea to receipt and possession of child pornography, announced United States Attorney Kenneth Magidson.
The investigation into Macias began as a result of an investigation into a website and message board by investigators in San Diego, Calif. During that investigation, a computer was traced to Macias and identified as accessing the message board and downloading images of child pornography.
A search warrant was conducted at his Friendswood home. At that time, officers seized a laptop computer, a number of CDs and several external hard drives which were found to contain more than 2,000 images and more than 100 videos containing child pornography.Macias admitted to downloading and viewing child pornography.
U.S. Circuit Judge Gregg Costa, sitting by designation, has set sentencing for Oct. 7, 2014. At that time, Macias faces at least five and up to 20 years on the receipt charges and up to 10 years imprisonment for possession of child pornography. Both convictions also carry a possible $250,000 maximum fine. Upon completion of any prison term imposed, Macias also faces a maximum of life on supervised release during which the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet. He will also be required to register as a sex offender.The charges against Macias were the result of an investigation conducted by Homeland Security Investigations, Friendswood Police Department and the Houston Metro Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Robert Stabe, as brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Fort Worth Man Admits Running Oil and Gas Ponzi SchemeRead the Press Release
Approximately 45 Investors Invested Approximately $5.8 Million in Fraud Scheme
FORT WORTH, Texas — A Fort Worth man who was arrested in Oregon, where he fled when a fraudulent oil and gas Ponzi scheme he was running began to unravel, pleaded guilty today to one count of wire fraud, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Jeffrey Watts, aka “Jeff Watts,” 41, appeared before U.S. Magistrate Judge Jeffrey L. Cureton this morning and pleaded guilty to a felony information, filed on July 8, 2014, charging one count of wire fraud. He faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine and restitution. Watts has been in custody since his arrest in Eugene, Oregon, in early May 2014 on charges outlined in a related federal criminal complaint filed in March 2014. Sentencing is set for December 9, 2014.
According to documents filed in the case, beginning in fall 2011 and continuing to December 2013, Watts engaged in a scheme to defraud involving oil and gas investments. He presented himself as the founder and principal of Blue Alpha Energy, falsely representing to investors that the company had invested in oil and gas well in Texas and was owned and/or operated by Arrowhead Productions, a legitimate, but unrelated company based in Fort Worth.
Watts established Blue Alpha Energy and a group of related sham entities to perpetrate his fraud scheme by leading investors to believe they were investing in oil and gas wells owned and/or operated by Arrowhead Productions. For example, Watts represented to investors that Arrowhead LG, LLC was an assumed name or “d/b/a” of Arrowhead Productions, and he possessed documents that bore the purported signature of the actual president of Arrowhead Productions, as the President of Arrowhead LG, LLC.
Watts falsely portrayed these sham entities as legitimate, third party lenders or investors in his alleged oil and gas interests, and he transferred investor funds between these accounts and the accounts of Blue Alpha Energy.
Watts falsely represented to investors that they would receive monthly distributions according to their ownership percentage in oil and gas wells owned and/or operated by Arrowhead Productions. He also duped his business partners and employees into believing his fraudulent representations, causing them to disseminate printed investment information that conveyed his misrepresentations. To further the scheme, Watts made monthly payments to investors in Blue Alpha Energy, using investor funds transferred between bank account of the sham entities he controlled.
Between 2011 and 2013, approximately $5.8 million in investments was raised from approximately 45 investors. However, in December 2013, several investors in Blue Alpha Energy learned Watts never had investment agreements with Arrowhead Productions and, in fact, funneled the investor funds into the sham business entities he controlled.
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 is 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 the FFETF, 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.
The FBI investigated the case; Assistant U.S. Attorney Nancy Larson is in charge of the prosecution.
Former University School of Jackson Employee Pleads Guilty to Wire and Tax FraudRead the Press Release
Memphis, TN – Jessica Nicole Pinkerton, age 33, of Humboldt, Tennessee, pleaded guilty today to a criminal information charging her with one count of wire fraud and one count of tax fraud, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee; A. Todd McCall, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation; and Christopher A. Henry, Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office.
According to the criminal information and statements made in court, Pinkerton was employed as a financial services manager at the University School of Jackson (USJ) from 2008 to 2014. Beginning in late 2009 through early 2014, Pinkerton, in her capacity as financial services manager, initiated Automatic Clearing House (ACH) transfers of USJ funds into her personal bank account. Pinkerton also filed a 2013 IRS form 1040, stating that her earned income was $29,321 when it actually was $195,689.71. As a part of the plea agreement filed today, Pinkerton will owe restitution of $606,375.33 to the University School of Jackson and $143,168.37 to the Internal Revenue Service.
“This case underscores our unwavering commitment to bring to justice those who steal from others and brazenly line their pockets by committing white collar crimes,” said United States Attorney Stanton. “When employees such as Jessica Pinkerton scheme to fraudulently divert funds from employers, the United States Attorney’s Office will work with law enforcement partners to ensure those individuals are held accountable and prosecuted to the full extent of the law.”
“This plea is the result of the hard work of the FBI and our law enforcement partners in the pursuit of those who use fraud to line their pockets with other people’s money,” said Special Agent in Charge McCall. “It should send a signal that criminal behavior like this will not go undetected. We will find you, catch you, and you will be held accountable for your actions.”
“The IRS enforces the nation’s tax laws, but also takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others,” stated Special Agent in Charge Henry. “No matter what the source of income, all income is taxable. The prosecution of individuals who intentionally conceal income and evade taxes is a vital element of the IRS’ enforcement strategy. We are pleased with the successful resolution of this investigation due to the cooperative efforts of our law enforcement partners.”
Pinkerton faces a maximum penalty of 20 years imprisonment, a $250,000 fine, and three years supervised release. Sentencing is scheduled for October 23, 2014 at 1:15 p.m. before Chief United States District Judge J. Daniel Breen.
This case was investigated by the Federal Bureau of Investigation – Jackson Resident Agency, and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorney Victor L. Ivy on behalf of the government.