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11 September 2014
Lafayette Man Indicted for Tax Evasion, Making a False Tax ReturnRead the Press Release
LAFAYETTE, La. –A federal grand jury indicted a Lafayette man Wednesday for not listing more than $350,000 on an income tax return, U.S. Attorney Stephanie A. Finley announced.
Donald Domingues, 56, of Lafayette, was charged by a federal grand jury with one count of tax evasion and one count of making a false tax return. According to the indictment, when Domingues filed his U.S. Individual Income Tax Return, Form 1040 for calendar year 2007, he reported $259,725 as income and paid $64,909 in taxes. Domingues is accused of intentionally leaving out a $351,000 sales commission, which would have made his correct gross income $610,725 and his payment to the IRS 185,959.
If convicted, Domingues faces five years in prison and three years of supervised release for tax evasion, and he faces three years in prison and one year of supervised release for making a false statement in a tax return. He also faces up to a $100,000 fine and restitution.The IRS investigated the case. Assistant U.S. Attorney Howard C. Parker is prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Kuna Man Sentenced on Child Pornography ChargeRead the Press Release
BOISE - Ian Quincy Winn, 48, of Kuna, Idaho, was sentenced today to 60 months in prison, followed by ten years of supervised release for receipt and attempted receipt of sexually explicit images of minors, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Winn to undergo sex offender treatment, and forfeit the computer equipment used in the crime. He pleaded guilty to the charge on April 7, 2014.
According to the plea agreement, Winn engaged in online chats with an undercover Homeland Security Investigations (HSI) special agent between October 2012 and July 2013. During these chats, Winn spoke extensively about his interest in the torture, rape and murder of a (fictitious) six-year-old child whom the undercover agent claimed was his niece. Winn did not know the child was fictitious. In June, Winn asked the undercover agent to send him a photo of the fictitious six-year-old performing a sexual act.
HSI special agents obtained a search warrant and served it at Winn’s home in Kuna on August 12, 2013. They seized several computers and electronic storage devices containing child pornography, including sexually explicit images of prepubescent females. Agents sent the images to the National Center for Missing and Exploited Children (NCMEC), which maintains a database of previously identified victims of abuse. The NCMEC reported that the images found on Winn’s computer included known victims from California, Texas, Belgium, Missouri, Indiana, Washington, the Republic of Moldova and Ukraine. Winn confessed that he had been conducting online searches for erotic and sexually explicit images of young girls for about three to four years. Judge Lodge ordered Winn to pay $2,000 in restitution to an identified child found within his child pornography collection.
The case was investigated by agents from the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), in Boise and North Platte, Nebraska, assisted by investigators from the United States Postal Inspection Service and the Kuna Police Department.
Homeland Security Investigations and the United States Postal Inspection Service are members of the Idaho Internet Crimes Against Children (ICAC) Task Force, a statewide coalition of local, state and federal law enforcement and prosecution agencies, focused on apprehending and prosecuting individuals who use the Internet to criminally exploit children. For more information about the Idaho ICAC Task Force and a list of all the participating agencies, visit www.icacidaho.org.
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.”
Investigators, Prosecutors Combat Financial FraudRead the Press Release
International Audience of Professionals Meet and Discuss Strategies Fighting Crimes of Financial FraudSALEM, Ore. – For the 14th consecutive year, a unique financial crimes conference was held in Oregon this week. The Financial Crimes Digital Evidence Conference has become international in scope, attracting participants in past years from Europe and Asia. It brings together law enforcement investigators and prosecutors, financial institution fraud investigators, and corporate fraud investigators to learn how to apply the most recent technology to combat financial fraud. Financial fraud results in billions of dollars of losses annually in the United States and law enforcement officers in Oregon are determined to reduce the harm to consumers and to hold more offenders accountable.
Beginning on Tuesday, September 9, through Thursday, September 11, law enforcement investigators, prosecutors, financial institution fraud investigators, corporate fraud investigators and auditors have gathered at the Salem Convention Center to learn how to better investigate and prosecute financial fraud. The conference provides investigators and prosecutors who handle financial crimes, and private-sector personnel who assist them in doing so, tools to assist in the detection, investigation and prosecution of financial fraud. The conference is open to all city, county, state, and federal law enforcement officers and prosecutors; fraud investigators and security officers for financial institutions; internal auditors for public agencies; and private-sector personnel who assist law enforcement in the investigation of financial crimes.
The seminar address a variety of topics, including: (1) trends in online fraud; (2) the emerging role of law enforcement in response to data breaches; (3) social media investigations; (4) mortgage fraud; (5) digital and virtual currency; (6) consumer fraud schemes; (7) credit card fraud; (8) social security disability fraud, (9) financial exploitation of elders; and (10) state and federal search and seizure legal updates.
“The value of the Financial Crimes Digital Evidence Conference is reflected in its international audience,” said U.S. Attorney Amanda Marshall. “It supports a continuous need for training in the increasingly sophisticated area of financial fraud and reflects our desire to hold accountable those who victimize our citizens. The combined training of investigators and prosecutors fosters a team approach and provides immediate tools to better detect, investigate, and prosecute those who commit financial fraud.”
The 2014 Financial Crimes Digital Evidence Conference is sponsored by the United States Attorney’s Office, the Oregon Department of Justice, and the Oregon Department of Public Safety Standards and Training.
For further information, please contact Donna Maddux at 503-727-1000 or visit www.financialcrimesconference.com.
Hyde Park Man Sentenced to More Than 10 Years in Sex Trafficking CaseRead the Press Release
BOSTON – A Hyde Park man was sentenced today for transporting a woman from Massachusetts to New Jersey, Vermont and Pennsylvania for the purpose of prostituting her.
Darrell B. Graham, a/k/a Diamond, 52, was sentenced by U.S. District Judge Nathaniel M. Gorton to 150 months in prison, five years of supervised release, and $58,403 in restitution. In April 2014, Graham pleaded guilty to transporting a woman to engage in prostitution.
Graham promised a vulnerable, 19-year-old victim money and dreams of a better life. Instead, Graham took the victim’s identification documents, posted her picture on the Internet, instructed her to cut ties with her family and friends, and for the next two months prostituted her in hotel rooms in several states. Graham never paid the victim, and instead coerced her to engage in commercial sex through a scheme that included placing her in fear by using violence and threats of violence. Graham ultimately pleaded guilty to transporting the victim from Massachusetts to New Jersey on Aug. 18, 2011, from Massachusetts to Vermont on Sept. 19, 2011, and from Massachusetts to Pennsylvania on Sept. 24, 2011 for the purpose of engaging in prostitution.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Kristina E. Barclay and S. Theodore Merritt of Ortiz’s Civil Rights Enforcement Team.
- Houston Store Owner Sentenced for Identity Theft and Multiple Counts of Wire Fraud
Honduran Native Charged with Illegal ReentryRead the Press Release
Wilson Donaldo Cruz-Arias, 30, of Norristown, PA, was charged today by indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about August 12, 2014, Cruz-Arias, an alien, and native and citizen of Honduras, was found in the United States after having been deported from the United States on or about October 14, 2008 and August 26, 2010.
If convicted the defendant faces a maximum possible sentence of ten years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Andrew J. Schell.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Hewlett-Packard Russia Pleads Guilty to and <br /> Sentenced for Bribery of Russian Government OfficialsRead the Press Release
ZAO Hewlett-Packard A.O. (HP Russia), an international subsidiary of the California technology company Hewlett-Packard Company (HP Co.), pleaded guilty today to felony violations of the Foreign Corrupt Practices Act (FCPA) and was then sentenced for bribing Russian government officials to secure a large technology contract with the Office of the Prosecutor General of the Russian Federation.
Principal Deputy Assistant Attorney General Marshall L. Miller of the Justice Department’s Criminal Division, U.S. Attorney Melinda Haag of the Northern District of California, Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington Field Office and Chief Richard Weber of the Internal Revenue Service – Criminal Investigation (IRS-CI) made the announcement.
HP Russia pleaded guilty this morning before U.S. District Judge D. Lowell Jensen of the Northern District of California to conspiracy and substantive violations of the anti-bribery and accounting provisions of the FCPA. According to the plea agreement, HP Russia executives created a multimillion dollar secret slush fund, at least part of which was used to bribe Russian government officials who awarded the company a contract valued at more than € 35 million.
At the conclusion of the plea proceeding, the court sentenced HP Russia to pay a $58,772,250 fine.
“In a brazen violation of the FCPA, Hewlett Packard’s Russia subsidiary used millions of dollars in bribes from a secret slush fund to secure a lucrative government contract,” said Principal Deputy Assistant Attorney General Miller. “Even more troubling was that the government contract up for sale was with Russia’s top prosecutor’s office. Tech companies, like all companies, must compete on a level playing field, not resort to secret books and sham transactions to hide millions of dollars in bribes. The Criminal Division has been at the forefront of this fight because when corruption takes hold overseas, American companies and the rule of law are harmed. Today’s conviction and sentencing are important steps in our ongoing efforts to hold accountable those who corrupt the international marketplace.”
“Today’s conviction and sentence of HP Russia demonstrates that the United States Attorney’s Office is dedicated to aggressively prosecuting all forms of corporate fraud that touch our district, wherever they may occur,” said U.S. Attorney Haag. “HP’s cooperation during the investigation is what we expect of major corporate leaders facing the challenges of doing business around the world.”
“For more than a decade HP Russia business executives participated in an elaborate scheme that involved paying bribes to government officials in exchange for large contracts,” said FBI Assistant Director in Charge McCabe. “There is no place for bribery in any business model or corporate culture. Along with the Department of Justice, the IRS and international law enforcement partners, the FBI is committed to investigating corrupt backroom deals that threaten our global commerce.”“HP Russia thought that they could play by a different set of rules than the rest of the international business community,” said IRS-CI Chief Weber. “Unfortunately, they are not alone. For other companies out there conducting business in this way, let the message be very clear—we will relentlessly follow the money trail. IRS-CI is a trusted leader in the pursuit of corporations and executives who circumvent the law. CI is committed to maintaining fair competition, free of corrupt. practices, through a potent synthesis of global teamwork and our dynamic financial investigative talents.”
According to the statement of facts filed with the plea agreement, HP Russia created excess profit margins to finance the slush fund through an elaborate buy-back deal scheme. HP subsidiaries first sold the computer hardware and other technology products called for under the contract to a Russian channel partner, then bought the same products back from an intermediary at a nearly €8 million mark-up and an additional €4.2 million in purported services, then sold the same products to the Office of the Prosecutor General of the Russian Federation at the increased price. The payments to the intermediary were then largely transferred through multiple layers of shell companies, some of which were directly associated with government officials. Proceeds from the slush fund were spent on travel services, luxury automobiles, expensive jewelry, clothing, furniture and various other items.
To keep track of and conceal these corrupt payments, the conspirators inside HP Russia kept two sets of books: secret spreadsheets that detailed the categories of bribe recipients, and sanitized versions that hid the bribes from others outside of HP Russia. They also entered into off-the-books side agreements to further mask the bribes. As one example, an HP Russia executive executed a letter agreement to pay €2.8 million in purported “commission” fees to a U.K.-registered shell company, which was linked to a director of the Russian government agency responsible for managing the Office of the Prosecutor General of the Russian Federation project. HP Russia never disclosed the existence of the agreement to internal or external auditors or management outside of HP Russia.
On April 9, 2014, the government also announced criminal resolutions with HP subsidiaries in Poland and Mexico which violated the FCPA in connection with contracts with Poland’s national police agency and Mexico’s state-owned petroleum company, respectively. Pursuant to a deferred prosecution agreement, the department filed a criminal information charging Hewlett-Packard Polska, Sp. Z o.o. with violating the accounting provisions of the FCPA. Hewlett-Packard Mexico, S. de R.L. de C.V. entered into a non-prosecution agreement with the government pursuant to which it has agreed to forfeit proceeds and has admitted and accepted responsibility for its misconduct. In total, the three HP entities will pay $76,760,224 in criminal penalties and forfeiture.
In a related FCPA matter, the U.S. Securities and Exchange Commission (SEC) filed a proposed final judgment in April 2014 to which HP Co. consented. Under the terms of the proposed final judgment, HP Co. has paid $31,472,250 in disgorgement, prejudgment interest and civil penalties, bringing the total amount of U.S. criminal and regulatory penalties against HP Co. and its subsidiaries to more than $108 million.
Court filings acknowledge HP Co.’s extensive cooperation with the department, including conducting a robust internal investigation, voluntarily making U.S. and foreign employees available for interviews, and collecting, analyzing, and organizing voluminous evidence for the department. Court filings also acknowledge the extensive anti-corruption remedial efforts undertaken by HP Co., including taking appropriate disciplinary action against culpable employees, and enhancing HP Co.’s internal accounting, reporting, and compliance functions.
The case is being investigated by the FBI’s Washington Field Office with assistance from the FBI’s New York Field Office and FBI Legal Attaché offices in Mexico City, Moscow, Berlin and Warsaw, and the IRS-CI’s Oakland Field Office. The case is being prosecuted by Trial Attorneys Ryan Rohlfsen and Jason Linder of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Adam A. Reeves of the Northern District of California. The Criminal Division’s Office of International Affairs also provided significant assistance in this matter.
The Justice Department expresses its deep appreciation for the significant assistance provided by the SEC’s Division of Enforcement, the Polish Anti-Corruption Bureau, the Polish Appellate Prosecutor’s Office, the Public Prosecutor’s Office in Dresden, Germany, and our law enforcement partners in Mexico, the United Kingdom, Lithuania, Latvia, Italy, Spain and Hungary.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa .Hewlett-Packard Russia Pleads Guilty to and Sentenced for Bribery of Russian Government OfficialsRead the Press Release
SAN FRANCISCO – ZAO Hewlett-Packard A.O. (HP Russia), an international subsidiary of the California technology company Hewlett-Packard Company (HP Co.), pleaded guilty today to felony violations of the Foreign Corrupt Practices Act (FCPA) and was then sentenced for its role in bribing Russian government officials to secure a large technology contract with the Office of the Prosecutor General of the Russian Federation.
U.S. Attorney Melinda Haag of the Northern District of California, Principal Assistant Attorney General Marshall L. Miller of the Justice Department’s Criminal Division, Acting Assistant Director in Charge Timothy A. Gallagher of the FBI’s Washington Field Office and Chief Richard Weber of the Internal Revenue Service – Criminal Investigation (IRS-CI) made the announcement.
HP Russia pleaded guilty this morning before U.S. District Judge D. Lowell Jensen of the Northern District of California to conspiracy and substantive violations of the anti-bribery and accounting provisions of the FCPA. According to the plea agreement, HP Russia executives created a multimillion dollar secret slush fund, at least part of which was used to bribe Russian government officials who awarded the company a contract valued at more than €35 million.
At the conclusion of the plea proceeding, the court sentenced HP Russia to pay a $58,772,250 fine.
“Today’s conviction and sentence of HP Russia demonstrates that the United States Attorney’s Office is dedicated to aggressively prosecuting all forms of corporate fraud that touch our district, wherever they may occur,” said U.S. Attorney Haag. “HP’s cooperation during the investigation is what we expect of major corporate leaders facing the challenges of doing business around the world.”
“In a brazen violation of the FCPA, Hewlett Packard’s Russia subsidiary used millions of dollars in bribes from a secret slush fund to secure a lucrative government contract,” said Principal Deputy Assistant Attorney General Miller. “Even more troubling was that the government contract up for sale was with Russia’s top prosecutor’s office. Tech companies, like all companies, must compete on a level playing field, not resort to secret books and sham transactions to hide millions of dollars in bribes. The Criminal Division has been at the forefront of this fight because when corruption takes hold overseas, American companies and the rule of law are harmed. Today’s conviction and sentencing are important steps in our ongoing efforts to hold accountable those who corrupt the international marketplace.”
“For more than a decade HP Russia business executives participated in an elaborate scheme that involved paying bribes to government officials in exchange for large contracts,” said Assistant Director in Charge McCabe. “There is no place for bribery in any business model or corporate culture. Along with the Department of Justice, the IRS and international law enforcement partners, the FBI is committed to investigating corrupt backroom deals that threaten our global commerce.”
“HP Russia thought that they could play by a different set of rules than the. rest of the international business community,” said Chief Richard Weber, IRS Criminal Investigation. “Unfortunately, they are not alone. For other companies out there conducting business in this way, let the message be very clear—we will relentlessly follow the money trail. IRS-CI is a trusted leader in the pursuit of corporations and executives who circumvent the law. CI is committed to maintaining fair competition, free of corrupt. practices, through a potent synthesis of global teamwork and our dynamic financial investigative talents.”
According to the statement of facts filed with the plea agreement, HP Russia created excess profit margins to finance the slush fund through an elaborate buy-back deal scheme. HP subsidiaries first sold the computer hardware and other technology products called for under the contract to a Russian channel partner, then bought the same products back from an intermediary at a nearly €8 million mark-up and an additional €4.2 million in purported services, then sold the same products to the Office of the Prosecutor General of the Russian Federation at the increased price. The payments to the intermediary were then largely transferred through multiple layers of shell companies, some of which were directly associated with government officials. Proceeds from the slush fund were spent on travel services, luxury automobiles, expensive jewelry, clothing, furniture and various other items.
To keep track of and conceal these corrupt payments, the conspirators inside HP Russia kept two sets of books: secret spreadsheets that detailed the categories of bribe recipients, and sanitized versions that hid the bribes from others outside of HP Russia. They also entered into off-the-books side agreements to further mask the bribes. As one example, an HP Russia executive executed a letter agreement to pay €2.8 million in purported “commission” fees to a U.K.-registered shell company, which was linked to a director of the Russian government agency responsible for managing the Office of the Prosecutor General of the Russian Federation project. HP Russia never disclosed the existence of the agreement to internal or external auditors or management outside of HP Russia.
On April 9, 2014, the government also announced criminal resolutions with HP subsidiaries in Poland and Mexico which violated the FCPA in connection with contracts with Poland’s national police agency and Mexico’s state-owned petroleum company, respectively. Pursuant to a deferred prosecution agreement, the department filed a criminal information charging Hewlett-Packard Polska, Sp. Z o.o. with violating the accounting provisions of the FCPA. Hewlett-Packard Mexico, S. de R.L. de C.V. entered into a non-prosecution agreement with the government pursuant to which it has agreed to forfeit proceeds and has admitted and accepted responsibility for its misconduct. In total, the three HP entities will pay $76,760,224 in criminal penalties and forfeiture.
In a related FCPA matter, the U.S. Securities and Exchange Commission (SEC) filed a proposed final judgment in April 2014 to which HP Co. consented. Under the terms of the proposed final judgment, HP Co. has paid $31,472,250 in disgorgement, prejudgment interest and civil penalties, bringing the total amount of U.S. criminal and regulatory penalties against HP Co. and its subsidiaries to more than $108 million.
Court filings acknowledge HP Co.’s extensive cooperation with the department, including conducting a robust internal investigation, voluntarily making U.S. and foreign employees available for interviews, and collecting, analyzing, and organizing voluminous evidence for the department. Court filings also acknowledge the extensive anti-corruption remedial efforts undertaken by HP Co., including taking appropriate disciplinary action against culpable employees, and enhancing HP Co.’s internal accounting, reporting, and compliance functions.
The case is being prosecuted by Assistant U.S. Attorney Adam A. Reeves of the Northern District of California, Trial Attorneys Ryan Rohlfsen and Jason Linder of the Criminal Division’s Fraud Section with the assistance of Phillip Villanueva, Maryam Beros and Bridget Kilkenny of the Northern District of California. The Criminal Division’s Office of International Affairs also provided significant assistance in this matter. The case is being investigated by the FBI’s Washington Field Office with assistance from the FBI’s New York Field Office and FBI Legal Attache offices in Mexico City, Moscow, Berlin and Warsaw, and the IRS-CI’s Oakland Field Office.
The Justice Department expresses its deep appreciation for the significant assistance provided by the SEC’s Division of Enforcement, the Polish Anti-Corruption Bureau (CBA), the Polish Appellate Prosecutor’s Office, the Public Prosecutor’s Office in Dresden, Germany, and our law enforcement partners in Mexico, the United Kingdom, Lithuania, Latvia, Italy, Spain and Hungary.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
(HP Russia plea agreement )
(HP Russia information )
(HP Poland information )
(HP Poland DPA )
(HP Mexico NPA )
Harrisburg Man Indicted on Cocaine and Firearm ChargesRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Reginald Barton, Jr., 28, of Harrisburg, Pennsylvania was indicted yesterday by a federal grand jury in Harrisburg on charges of Possession of a Firearm by a Convicted Felon, Possession of a Firearm in furtherance of Drug Trafficking, and Possession With Intent to Distribute a Controlled Substance.
According to United States Attorney Peter Smith, the charges are a result of an incident in which Barton allegedly shot at a Harrisburg Police officer during a traffic stop, fled, and was ultimately apprehended after discarding a firearm and a bag containing crack cocaine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrisburg Police Bureau as part of a joint continuing effort to curb violent crime. This case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Habitual Domestic Assault Offender from Zuni Pueblo Sentenced to Forty Months in Federal PrisonRead the Press Release
ALBUQUERQUE – Bobby Concho, 53, was sentenced this morning to 40 months in federal prison followed by two years of supervised release for his conviction on assault and domestic assault by a habitual offender charges. The sentence was announced by U.S. Attorney Damon P. Martinez and Chief Timothy Trimble of the Zuni Pueblo Tribal Police Department.
Concho, a member and resident of Zuni Pueblo, N.M., was arrested on Feb. 25, 2014, on a two-count indictment charging him with assault with a dangerous weapon and domestic assault by a habitual offender. The indictment alleged that Concho assaulted his intimate partner with a metal folding chair on June 23, 2013, in Indian Country in McKinley County, N.M. Concho was charged as a habitual offender because he previously had been convicted on domestic assault charges in the Zuni Tribal Court in 2006 and in the McKinley County Magistrate Court in 2004.
On May 2, 2014, Concho entered a guilty plea to both counts of the indictment. In entering his guilty plea, Concho admitted assaulting his intimate partner on June 23, 2013, by striking her in the face multiple times with a closed fist and hitting her with a metal folding chair with the intention of causing bodily harm. Concho acknowledged committing the assault within Zuni Pueblo.
This case was investigated by the Zuni Pueblo Tribal Police Department and was prosecuted by Tribal Special Assistant U.S. Attorney David Adams. The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Georgia Resident Sentenced to 78 Months in Federal Prison for Role in Investment Fraud SchemeRead the Press Release
Persuaded Investors To Invest Ira Funds In Residential Real Estate Project In Vernal, UtahSALT LAKE CITY - Martin A. Pool, age 44, of Atlanta, Georgia, who pleaded guilty in May to securities fraud and money laundering in connection with an investment fraud scheme related to a real estate project in Vernal, Utah, will serve 78 months in federal prison. Pool also must pay restitution of $8,066,596.88. U.S. District Judge Dale Kimball imposed the sentence Wednesday afternoon in U.S. District Court in Salt Lake City.
Pool will self-surrender to begin serving his federal sentence on Dec. 1, 2014.
Pool and a co-defendant, Armand R. Franquelin, age 57, of Liberty, Utah, were charged in a three-count felony information filed in April. As a part of a plea agreement reached with federal prosecutors, Pool and Franquelin admitted that from 2006 to 2010, they participated in persuading investors to convert their traditional IRAs to self-directed IRA accounts and invest their funds in a residential real estate project known as Haven Estates in Vernal, Utah. This was accomplished by inducing the investors to direct their funds to their company, The Elva Group, in return for promissory notes from Elva with a promise of monthly interest payments at annual rates between 8 percent and 20 percent. Pool and Franquelin admitted they told investors that their funds would be used to develop Haven Estates and promised to secure their loans with first lien positions in property at Haven Estates. In fact, no investors ever received any collateral or any interest in real property in Haven Estates or anywhere else.
In reality, the plea agreement says, investors’ funds were used for purposes other than the development of Haven Estates. Investors were not told of encumbrances already in place on Haven Estates. When Elva began defaulting on the mortgage loan for Haven Estates, investors were not immediately informed. Eventually, Haven Estates was foreclosed.
Pool and Franquelin admitted that these actions were taken in connection with the investors’ purchase of securities, namely the promissory notes and loan agreements. They also admitted that these representations were made for the purpose of defrauding investors.
According to the plea agreement, investors’ funds were used by Pool and Franquelin and their associates for their personal benefit and to pay interest to earlier investors as Ponzi payments. The Ponzi payments had the effect of lulling the earlier investors, persuading them to leave their funds in the company and inducing them to renew their promissory notes from time to time. The payments also enticed new investors to invest.
Pool and Franquelin each pled guilty to one count of securities fraud and one count of money laundering. Sentencing for Franquelin is set for Sept. 22, 2014, at 2:30 p.m. before Judge Kimball.
As a part of the plea agreement, Pool and Franquelin agreed to pay restitution of $$8,066,596.88 to victims of the fraud, including victims of uncharged relevant conduct. Alabama victims invested more than $500,000 in this scheme.
“The U.S. Attorney’s Office in Utah has a long standing commitment to aggressively prosecuting fraudsters who target residents of our state and others around the country. These successful prosecutions serve as a deterrent to this criminal conduct. Most importantly, however, they vindicate the rights of victims who are harmed by the conduct of those involved in fraudulent schemes,” Acting U.S. Attorney for Utah Carlie Christensen said today.
The case was a multi-jurisdictional investigation by special agents of the FBI and IRS-Criminal Investigation; the Utah Department of Commerce, Division of Securities; and the Alabama Securities Commission with assistance from the office of Baldwin County, Alabama, District Attorney Hallie S. Dixon (28th Judicial Circuit). Alabama victims of the scheme invested more than $500,000.
Alabama Securities Commission Director Joseph Borg, said, "This Commission is proud to have joined the collaborative efforts of the federal and state law enforcement agencies and their professional staff members to see that justice is served for the victims in this important case. The outcome resulted from a team approach between the U.S. Attorney's Office in Utah, the Utah Department of Commerce's Division of Securities, the FBI, the IRS, and the ASC Enforcement and Legal Divisions to send a message that this financial crime, and others like it, will not be tolerated and will be prosecuted to the fullest extent of the law."
“This sentence demonstrates that taking money from investors under false pretenses and using it for your own personal benefit as Pool did won’t be tolerated. IRS Criminal Investigation is proud to bring our forensic accounting skills to this investigation and, working side-by-side with our law enforcement partners and prosecutors, help put a stop to this and other types of white collar crime,” said John Collins, IRS Criminal Investigation Special Agent in Charge of Utah.
Galax Woman Sentenced on Social Security Fraud ChargesRead the Press Release
ABINGDON, VIRGINIA – A former sponsored residential services provider, who pled guilty in May to charges that she illegally converted Social Security disability benefits for her own use, was sentenced yesterday in the United States District Court for the Western District of Virginia in Abingdon.
Tamara Rochelle Cox Parnell, 36, Galax, Virginia, waived her right to be indicted on May 13, 2014 and pled guilty to two counts of knowingly and willfully converting to her own use Social Security disability payments to another for which she was representative payee. Yesterday in District Court, Parnell was sentenced to four months imprisonment and three years of supervised release. She was also ordered to pay $34,899 in restitution.
Parnell has admitted that while serving as a sponsored residential services provider for Victim 1, a mentally disabled adult, she willfully and without the knowledge of Victim 1, converted $29,715 of Social Security disability benefits paid to Victim 1 to her own personal use.
The investigation of the case was conducted by the Galax Police Department and the United States Secret Service. Assistant United States Attorney Jennifer Bockhorst prosecuted the United States.
Gaffney Man Sentenced to 78 Months on Child Porn ChargesRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Donald Howard Smiley, age 38, of Gaffney, was sentenced today in federal court in Anderson, for possession of child pornography, a violation of Title 18, United States Code, Section 2255A. Senior United States District Judge G. Ross Anderson, Jr. of Anderson sentenced Smiley to 78 months imprisonment and ordered that he be on supervised release for five years.
Evidence presented at the change of plea hearing established that law enforcement discovered that a cell phone in the Gaffney area was being used to store and receive child pornography. Further investigation revealed that the mobile device belonged to Smiley. A search of the device led to the discovery of 138 still images and 26 videos of child pornography. After being confronted with the evidence, Smiley waived his Miranda rights and admitted to his involvement with child pornography.
The case was investigated by agents of the Gaffney Police Department, the Cherokee County Sheriff’s Department, and the Federal Bureau of Investigation. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.Former TD Bank Employee and Co-Defendant Sentenced in Identity Theft Tax Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), announce that Tenisha Nkesha Francis, 32, of Lake Worth, and Ryan Michael Francis, 27, of Riviera Beach, were sentenced today before Senior U.S. District Judge Kenneth L. Ryskamp for their participation in a stolen identity tax refund scheme. Tensiha Francis was sentenced to 42 months in prison, three years of supervised release and ordered to pay $117,002 in restitution. Ryan Francis was sentenced to 57 months in prison, three years of supervised release and ordered to pay $202,720 in restitution.
The defendants each previously pled guilty to one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2, and one count of theft of government funds, in violation of Title 18, United States Code, Sections 641 and 2.
According to court documents, Tenisha Francis worked as a Financial Services Representative at TD Bank. Tenisha Francis opened seven fraudulent accounts at the bank with stolen identification information obtained from co-defendant Ryan Francis. She was paid between $200 and $500 to open each fraudulent account. After opening the accounts, Tenisha Francis performed maintenance on these accounts and changed certain identifiers associated with the accounts, such as customers’ dates of birth, addresses and telephone numbers. Stolen U.S. Treasury checks were deposited into the accounts, and funds were withdrawn via check card purchases, ATM withdrawals and checks payable to third parties including Ryan Francis and his wife, Vanessa Brown, and Ryan Francis’ company, J.A. Kingz Automotive, LLC.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case was prosecuted by Assistant U.S. Attorney Rinku Tribuiani.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Federal Employee Who Stole Government Property for Home Improvement Projects Is SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that VENITA GODFREY-SCOTT, 48, of New Haven, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to four years of probation, the first six months of which GODFREY-SCOTT must spend in home confinement with electronic monitoring, for stealing government property that she used for various home improvement projects. GODFREY-SCOTT was also ordered to perform 120 hours of community service and to pay restitution in the amount of $15,000.
According to court documents and statements made in court, GODFREY-SCOTT was employed by the U.S. Department of Veterans Affairs (“VA”) at the Medical Center in West Haven as a supervisor in the Facilities Management Service, which is responsible for carpentry, paint, locks, doors, and other minor construction projects at the Medical Center. From approximately 2010 until 2013, GODFREY-SCOTT directed VA employees that she supervised to perform home improvement projects at her private residence, including a deck in her backyard, carpet installation, and various kitchen, bathroom and basement improvements. GODFREY-SCOTT directed the employees to use materials, supplies, tools, and vehicles belonging to the VA, and also had the employees purchase necessary materials at local stores using her government-issued credit card. She sometimes directed the employees to work on her home improvement projects during their regular work hours while they were being paid by the VA. The total loss to the government as a result of GODFREY-SCOTT’s criminal conduct is estimated to be between $15,000 and $20,000.
On May 14, 2014, GODFREY-SCOTT pleaded guilty to one count of theft of government property.
This matter was investigated by the Department of Veterans Affairs Office of Inspector General, the Department of Veterans Affairs Police and the General Services Administration Office of Inspector General Northeast Regional Investigations Office. The case was prosecuted by Assistant U.S. Attorney Neeraj N. Patel.PUBLIC AFFAIRS CONTACT:
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(203) 821-3722 [email protected]Former Federal Corrections Officer Pleads Guilty to Bribery ChargeRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces that Jason Monroe Epstein (29, Orlando) has pleaded guilty to a one-count indictment charging him with receipt of a bribe by a public official. Epstein faces a maximum penalty of 15 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Epstein was employed as a Corrections Officer by the Federal Bureau of Prisons at the Coleman Federal Correctional Complex in Sumter County. Based on information from inmates at the facility, agents discovered that Epstein had been smuggling marijuana and tobacco products into the prison. In exchange for these items, the inmates had arranged for third parties to send Epstein numerous wire transfers under false names.
During the course of the investigation, Epstein was interviewed by agents and admitted that he had smuggled marijuana and tobacco into the prison over a two-year period, from April 2012 to April 2014. Epstein also admitted that he had received “hundreds of dollars” in illegal payments for his actions.
This case was investigated by Federal Bureau of Investigation and the Department of Justice, Office of the Inspector General. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Former Defense Contractor Sentenced to Prison for Theft of Employee Payroll Taxes and Pension Plan ContributionsRead the Press Release
The former head of a Virginia-based defense contracting company was sentenced today to serve 18 months in prison for failing to collect and pay more than $2.2 million in employee payroll taxes and engaging in theft of more than $186,000 from an employee pension plan.
Deputy Assistant Attorney General Ronald Cimino for the Justice Department’s Tax Division, U.S. Attorney Dana J. Boente for the Eastern District of Virginia, Special Agent in Charge Thomas J. Kelly for the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington, D.C., Field Office and Assistant Secretary Phyllis C. Borzi of the U.S. Department of Labor-Employee Benefits Security Administration made the announcement after sentencing.
William P. Danielczyk Jr., 53, formerly of Oakton, Virginia, was additionally ordered to serve three years of supervised release after his prison sentence and to pay more than $1.6 million in restitution to the IRS. U.S. District Judge James C. Cacheris delivered the sentence and it will be served consecutively to the 28 months in prison the defendant is already serving for committing campaign finance violations during the 2008 presidential primary and a 2006 U.S. Senate campaign.
Danielczyk pleaded guilty on June 10. According to court documents, from March 2009 until December 2011, Danielczyk was the executive chairman of Innolog Holdings Corporation, which acquired Innovative Logistics Technology Inc. in March 2009. Innovative operated in the government services industry and provided technology-supported logistics services to the U.S. military and various defense organizations. The principal offices for Innovative and Innolog were located in McLean, and later in Fairfax, Virginia.
From mid-2009 through the end of 2011, Danielczyk was responsible for collecting, accounting for and paying appropriate payroll tax amounts to the IRS. Although payroll taxes were withheld from the wages of Innovative’s employees, Danielczyk failed to pay both the employee withholdings amounts and the employer’s matching portions to the IRS. The total tax loss during this time period was $2,232,781.
According to court documents, Innovative’s employees were allowed to contribute money from their bi-weekly paychecks to a qualified pension plan that was administered by an asset custodian (initially Prudential Bank & Trust and later Fidelity Investments). Under the 401(k) plan, Innovative withheld its employees’ elected contribution amounts from their regular paychecks, and the employee withholdings were to be sent to Prudential or Fidelity. Danielczyk, however, was the person responsible for authorizing payments to the asset custodian, and he failed to send these payments over the course of three years. From 2009 through 2011, this conduct led to a total loss of $186,263.
According to court records, instead of paying Innovative’s employment taxes and pension plan contributions, Danielczyk made a variety of purchases from company accounts. Those purchases included $505,871 for the use of an executive suite in the FedEx Field football stadium in Landover, Maryland, along with $40,000 to sponsor the Virginia Gold Cup, a series of Steeple Chase horse races held in northern Virginia.
Danielczyk was sentenced in Alexandria, Virginia, federal court on May 31, 2013, to serve 28 months in prison for engaging in a campaign finance scheme in which he conspired to illegally reimburse more than $186,000 in contributions to the senate and presidential campaign committees of a candidate for federal office, engaged in obstruction of justice, and caused the candidate’s campaign committee to unwittingly file Federal Election Commission reports that contained false information. Court records show that Danielczyk continued to fail to pay Innovative’s employee taxes and pension plan contributions even after he was indicted in the campaign finance case in February 2011.
The tax and pension fraud case was investigated by IRS-CI and the U.S. Department of Labor-Employee Benefits Security Administration’s Philadelphia Regional Office. Assistant U.S. Attorney Mark D. Lytle for the Eastern District of Virginia and Trial Attorney Tracy L. Gostyla of the Tax Division prosecuted the case. Additional information about the Tax Division and its enforcement efforts may be found at the division website.
Former Defense Contractor Sentenced to Prison for Theft of Employee Payroll Taxes and 401(k) ContributionsRead the Press Release
ALEXANDRIA, Va. – The former head of a Virginia-based defense contracting company was sentenced today to serve 18 months in prison for failing to collect and pay more than $2.2 million in employee payroll taxes and engaging in theft of more than $186,000 from an employee pension plan.
U.S. Attorney Dana J. Boente for the Eastern District of Virginia; Deputy Assistant Attorney General Ronald Cimino for the Justice Department’s Tax Division; Special Agent in Charge Thomas J. Kelly for the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington, D.C. Field Office; and Assistant Secretary Phyllis C. Borzi of the U.S. Department of Labor-Employee Benefits Security Administration made the announcement after sentencing.
William P. Danielczyk Jr., 53, formerly of Oakton, Virginia, was ordered to serve three years of supervised release after his prison sentence and to pay more than $1.6 million in restitution to the IRS. U.S. District Judge James C. Cacheris imposed the sentence, and it will be served consecutively to the 28 months in prison the defendant is already serving for committing campaign finance violations during the 2008 presidential primary and a 2006 U.S. Senate campaign.
Danielczyk pleaded guilty on June 10, 2014. According to court documents, from March 2009 until December 2011, Danielczyk was the executive chairman of Innolog Holdings Corporation, which acquired Innovative Logistics Technology Inc. in March 2009. Innovative operated in the government services industry and provided technology-supported logistics services to the U.S. military and various defense organizations. The principal offices for Innovative and Innolog were located in McLean, and later in Fairfax, Virginia.
From mid-2009 through the end of 2011, Danielczyk was responsible for collecting, accounting for and paying appropriate payroll tax amounts to the IRS. Although payroll taxes were withheld from the wages of Innovative’s employees, Danielczyk failed to pay both the employee withholdings amounts and the employer’s matching portions to the IRS. The total tax loss during this time period was $2,232,781.
According to court documents, Innovative’s employees were allowed to contribute money from their bi-weekly paychecks to a qualified pension plan that was administered by an asset custodian (initially Prudential Bank & Trust and later Fidelity Investments). Under the 401(k) plan, Innovative withheld its employees’ elected contribution amounts from their regular paychecks and the employee withholdings were to be sent to Prudential or Fidelity. Danielczyk was the person responsible for authorizing payments to the asset custodian, and he failed to send these payments over the course of three years. From 2009 through 2011, this conduct led to a total loss of $186,263.
According to court records, instead of paying Innovative’s employment taxes and pension plan contributions, Danielczyk made a variety of purchases from company accounts. Those purchases included $505,871 for the use of an executive suite in the FedEx Field football stadium in Landover, Maryland, along with $40,000 to sponsor the Virginia Gold Cup, a series of Steeple Chase horse races held in northern Virginia.
Danielczyk was sentenced in Alexandria federal court on May 31, 2013 to serve 28 months in prison for engaging in a campaign finance scheme in which he conspired to illegally reimburse more than $186,000 in contributions to the senate and presidential campaign committees of a candidate for federal office, engaged in obstruction of justice, and caused the candidate’s campaign committee to unwittingly file Federal Election Commission reports that contained false information. Court records show that Danielczyk continued to fail to pay Innovative’s employee taxes and pension plan contributions even after he was indicted in the campaign finance case in February 2011.
The tax and pension fraud case was investigated by IRS-CI and the U.S. Department of Labor-Employee Benefits Security Administration’s Philadelphia Regional Office. Assistant U.S. Attorney Mark D. Lytle for the Eastern District of Virginia and Trial Attorney Tracy L. Gostyla of the Tax Division prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the U.S. District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-146.
Former Defense Contractor Indicted for Illegally Exporting Military Blueprints and Defrauding U.S. Department of DefenseRead the Press Release
TRENTON, N.J. – The former owner of two New Jersey defense contracting businesses was indicted by a federal grand jury today for allegedly submitting fraudulent bids to the U.S Department of Defense (DoD) and disseminating military technical drawings to India without a license, U.S. Attorney Paul J. Fishman announced.
Hannah Robert, 49, of North Brunswick, New Jersey, was charged in a superseding indictment with one count of violating the Arms Export Control Act, one count of conspiracy to violate the act and four counts of wire fraud and one count of conspiracy to commit wire fraud. The Arms Export Control Act prohibits the export of defense articles and defense services without first obtaining a license from the U.S. Department of State and is one of the principal export control laws in the United States. Robert is currently under home detention pending trial.
According to the superseding indictment:
Robert was the founder, owner, and president of One Source USA LLC, a company located at her residence in Mount Laurel Township, New Jersey, and contracted with DoD to supply defense hardware items and spare parts pursuant to government contracts. Starting in September 2012, Robert opened a second defense-contracting company, Caldwell Components Inc., based at the same address in Mount Laurel Township.
Along with a resident of India identified only as “P.R.”, Robert owned and operated another company (One Source India) located in India that manufactured at its own facility defense hardware items and spare parts. From June 2010 to December 2012, Robert and P.R. allegedly conspired to defraud the DoD by electronically submitting fraudulent bids for DoD contracts, stating that they would provide parts manufactured in the United States, when in fact, the items were manufactured in India. One Source USA also subcontracted to other U.S. defense contractors, including those in Sussex County, New Jersey, and Boca Raton, Florida. Robert provided export-controlled items made in India to these defense contractors in such a way as to appear to the DoD that the items were manufactured in this country.
From June 2010 to December 2012, Robert also allegedly conspired to export defense blueprints to India without obtaining the necessary licenses from the U.S. Department of State. The exported technical drawings include parts used in the torpedo systems for nuclear submarines, military attack helicopters, and F-15 fighter aircraft.
In addition to United States’ sales, Robert and P.R. sold defense hardware items to foreign customers. Robert transmitted export-controlled technical data to P.R. in India so that Robert and P.R. could submit bids to foreigners, including those in the United Arab Emirates (UAE), to supply them or their foreign customers with defense hardware items and spare parts. Neither Robert nor P.R. obtained approval from the U.S. Department of State for this conduct.
On August 23, 2012, P.R. e-mailed Robert from India requesting the technical drawing for a particular military item. P.R.’s e-mail forwarded Robert an e-mail from an individual purporting to be “an official contractor of the UAE Ministry of Defence,” and who listed a business address in Abu Dhabi, UAE. The UAE e-mail requested quotations for a bid for the “blanket assembly” for the CH-47F Chinook military helicopter and listed the “End User” for the hardware item as the UAE Armed Forces. Later that same day, Robert replied to P.R.’s e-mail, attaching, among other things, the electronic file for an export-controlled technical drawing titled “Installation and Assy Acoustic Blankets, STA 120 CH-47F,” to be used in the Chinook attack helicopter.
Starting in October 2010, Robert transmitted the military drawings for parts to India by posting the technical data to the password-protected website of a Camden County, N.J., church where she was a volunteer web administrator. This was done without the knowledge of the church staff. Robert e-mailed P.R. the username and password to the church website so that P.R. could download the files from India. Through the course of the scheme, Robert uploaded thousands of technical drawings to the church website for P.R. to download in India.
On June 25, 2012, P.R. e-mailed Robert from India, stating: “Please send me the church web site username and password.” The e-mail was in reference to both an invoice to, and a quote for, an individual known to Robert as a broker of defense hardware items for an end-user in Pakistan. This individual (the “Pakistan trans-shipper”) employed a UAE address for shipping purposes. Later than day, Robert replied to this e-mail, providing a new username and password for the church website so that P.R. could download the particular defense drawings.
There were quality issues with the parts that Robert provided to the DoD. After the DoD in October 2012 disclosed the failure of certain parts used in the wings of the F-15 fighter aircraft, supplied by one of One Source USA’s American customers, Robert and P.R. provided the principal of that company with false and misleading material certifications and inspection reports for the parts. These documents, to be transmitted to the DoD, listed only One Source USA’s New Jersey address and not the address of the actual manufacturer in India, One Source India. As a result of the failed wing pins, the DoD grounded approximately 47 F-15 fighter aircraft for inspection and repair, at a cost estimated to exceed $150,000.
Robert was, until November 2012, an employee of a separate defense contractor in Burlington County, New Jersey, where she worked as a system analyst and had access to thousands of drawings marked with export-control warnings and to information on this defense contractor’s bids on DoD contracts. Robert misrepresented to her employer the nature and extent of her involvement with One Source USA.
Count One of the superseding indictment, charging conspiracy to commit wire fraud, carries a maximum penalty of 20 years in prison and a fine of $250,000. Counts Two through Five, charging substantive wire fraud, each carry a maximum penalty of 20 years and a fine of $250,000. Count Six, charging conspiracy to violate the Arms Export Control Act, is punishable by a maximum penalty of five years in prison and a $250,000 fine. Count Seven, charging a substantive violation of the Arms Export Control Act, is punishable by a maximum penalty of 20 years in prison and a $1 million fine. The superseding indictment also seeks forfeiture of Robert’s proceeds from the alleged criminal scheme.
U.S. Attorney Fishman credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service Northeast Field Office, under the leadership of Special Agent in Charge Craig W. Rupert, and special agents of the Department of Homeland Security, Homeland Security Investigations, Counter Proliferation Investigations, under the supervision of Special Agent in Charge Andrew M. McLees, with the investigation leading to the superseding indictment.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton, and L. Judson Welle of the U.S. Attorney’s Office National Security Unit.
The charges and allegations contained in the superseding indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
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Defense counsel: David Schafer Esq., Lawrenceville, New JerseyRobert, Hannah, Superseding Indictment
Former Chicago Man Sentenced to 40 Years in Federal Prison for Sexually Abusing Two Girls and Producing Child PornographyRead the Press Release
CHICAGO ― A Mexican national who fled to Mexico, was arrested there, and agreed to extradition, was sentenced today to the maximum of 40 years in federal prison for sexually molesting two minor girls and producing child pornography. The defendant, EDGAR HERNANDEZ, 36, pleaded guilty earlier this year to one count each of manufacturing child pornography and possessing child pornography.
At a sentencing hearing today, one victim, who was 15 at the time, and a relative of the other victim, who was 7 at the time, told U.S. District Judge Samuel Der-Yeghiayan about the traumatic damage that Hernandez inflicted upon the victims’ lives. “The defendant scarred the victims for life,” Assistant U.S. Attorney John Kness argued in seeking a high sentence after the victim’s statements were presented.
Judge Der-Yeghiayan imposed the maximum sentence of 30 years in prison on the manufacturing count, to be served consecutively with the 10-year maximum term on the possession count. Hernandez is subject to deportation upon release from custody, but he was also ordered to remain under court supervision for 10 years, and he must serve at least 85 percent of his sentence. There is no parole in the federal prison system.
According to court records, Hernandez resided in a Chicago apartment and the 7-year-old victim was entrusted to his care and had a series of occasional overnight visits between September and December 2009. Hernandez engaged in sexual conduct with the victim on approximately a dozen occasions, and he used the digital video camera on his cellular telephone to make two video recordings of the sexual abuse in November 2009. The victim’s relative discovered the videos in December and contacted the Chicago Police Department, which began an investigation that was soon joined by the FBI. During the investigation, law enforcement discovered Hernandez’s sexual abuse of the 15-year-old victim, including additional video recordings.
Upon learning that the younger victim’s relative had reported his crimes to law enforcement, Hernandez fled to Mexico on Dec. 24, 2009, taking the older victim with him. That victim was reunited with her family in early 2010, but Hernandez remained a fugitive after he was charged. He was arrested in Mexico in April 2013 and was returned to Chicago last October after agreeing to summary extradition.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Garry McCarthy, Superintendent of the Chicago Police Department.
Former Bank Teller Sentenced to 49.5 Years Prison for “inside Job” Bank RobberiesRead the Press Release
PHOENIX – On Sept. 10, 2014, Joel Leon Thomas, Jr., 24, of El Mirage, Ariz., was sentenced by Judge David G. Campbell to 49.5 years in federal prison for masterminding three bank robberies in Peoria, Surprise, and Sun City from January - February 2012. In March 2014, a federal jury found Thomas guilty of three counts of conspiracy to commit bank robbery, two counts of aid and abet armed bank robbery, one count of aid and abet bank robbery, and two counts of using a firearm in furtherance of a crime of violence.
The evidence at trial showed that Thomas, a bank teller at the time of the robberies, provided inside information to his co-conspirators about bank security measures and bank layouts to craft plans to rob three banks in January – February 2012. The conspiracy targeted banksThomas worked at in the Surprise, Sun City, and Peoria areas. Thomas orchestrated two bank robberies at gunpoint, and in one of those robberies, he posed as a victim bank teller as he loaded $246,000 from the vault into a duffel bag for the armed gunman, his friend. In a third bank robbery, the conspiracy recruited two homeless men to commit a “note job” where they demanded money from a victim bank teller inside a busy grocery store and turned over the money to Thomas and other conspirators. After obtaining search warrants, police seized approximately $150,000 in stolen bank money, firearms, ammunition, bank robbery demand notes, and hand-drawn diagrams of the banks from the residences and cars of Thomas and others charged in the conspiracy. Five others were charged and pleaded guilty in the conspiracy.
The investigation in this case was conducted by the Federal Bureau of Investigation and the FBI’s Bank Robbery Task Force, the Peoria Police Department, the Surprise Police Department, and the Tempe Police Department. The prosecution was handled by Jennifer E. Green and Tracy Van Buskirk, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-12-00523-002-PHX-DGC
RELEASE NUMBER: 2014-050_ThomasFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Former Bank Employee Sentenced for $650,000 Bank Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former UMB Bank employee was sentenced in federal court today for embezzling more than $650,000 in a bank fraud conspiracy.
Lisa L. Taylor, 54, of Kansas City, Mo., was sentenced by U.S. District Judge Dean Whipple to six years and six months in federal prison without parole. The court also ordered Taylor to forfeit to the United States a $650,659 money judgment.
Taylor, who pleaded guilty on Feb. 27, 2014, was employed by UMB Bank as a closing account specialist from May 2006 until October 2010. Taylor was terminated when a corporate fraud investigation revealed she had fraudulently embezzled UMB funds. Taylor admitted that she used her position to generate 377 fraudulent checks totaling $650,659.
As part of Taylor’s job duties at UMB she was responsible for collecting “charge off” amounts when a former customer’s account had been closed. Occasionally a deposit would come in for a closed account and be deposited to a general UMB account. Taylor was responsible for requesting a refund check to be issued from the general UMB account and sent to the former customer at their last known address. These refund checks were sent in the form of cashier checks that required approval of a bank officer. Taylor mixed in fraudulent refund check requests with these legitimate refund requests.
Over the course of the fraud scheme, Taylor requested checks payable to her friends and family, who cashed or deposited the checks. They kept a portion of the proceeds and paid Taylor 30 to 40 percent of the proceeds.
Taylor also had checks made payable to fictitious names, to which she forged the signatures and deposited into her bank account. UMB records revealed that Taylor personally negotiated 66 fraudulent UMB bank checks for a total of $96,793.
In addition to Taylor, 11 friends and family members have pleaded guilty to their roles in the bank fraud conspiracy, including nine co-defendants who were sentenced this week.
Kara L. Williams, 34, of Kansas City, Mo., was sentenced to two years in federal prison without parole and ordered to pay $80,653 in restitution. Shameeka N. Whitehead, 31, of Kansas City, Mo., was sentenced to 18 months in federal prison without parole and ordered to pay $101,781 in restitution. Rodney C. Austin, 49, of Kansas City, Mo., was sentenced to time served and ordered to pay $29,313 in restitution. Roshana A. Franklin, 22, of Kansas City, Mo., was sentenced to time served and ordered to pay $19,308 in restitution. Ralph Broadus, 60, of Kansas City, Mo., was sentenced to time served and ordered to pay $15,584 in restitution. Stephen A. Combs, 28, of Olathe, Kan., was sentenced to time served and ordered to pay $16,945 in restitution. Geoffrey N. King, 30, of Olathe, Kan., was sentenced to time served and ordered to pay $12,533 in restitution. William D. Moore, 24, of Grandview, Mo., was sentenced to time served and ordered to pay $41,908 in restitution. Lakisha S. Weathers, 29, of Springfield, Mo., was sentenced to time served and ordered to pay $10,442 in restitution.
Antonio O. Malone, 26, and Johnnie L. Coleman, 53, both of Kansas City, Mo., have pleaded guilty and await sentencing.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the U.S. Secret Service.Former Background Investigator for Federal Government Pleads Guilty to Making A False StatementRead the Press Release
WASHINGTON – Gina M. Adams, 46, a former background investigator for the U.S. Office of Personnel Management (OPM), pled guilty today to a charge stemming from her falsification of work on background investigations of federal employees and contractors, announced U.S. Attorney Ronald C. Machen Jr. and Patrick E. McFarland, Inspector General for the Office of Personnel Management.
Adams, of Glen Burnie, Md., pled guilty in the U.S. District Court for the District of Columbia to making a false statement. The Honorable Colleen Kollar-Kotelly scheduled sentencing for Dec. 18, 2014. The charge carries a statutory penalty of up to five years in prison and a fine of up to $250,000. As part of the plea, Adams has agreed to pay $10,000 in restitution to the federal government.
According to a statement of offense submitted to the Court, Adams was employed as a Special Agent of OPM’s Federal Investigative Services.
From at least the summer of 2013 through April 2014, in at least 10 Reports of Investigations on background investigations, Adams represented that she had interviewed a source or reviewed a record regarding the subject of the background investigation. In fact, she had not conducted the interviews or obtained the records of interest. These reports were utilized and relied upon by the agencies requesting the background investigations to determine whether the subjects were suitable for positions having access to classified information, for positions impacting national security, for positions of public trust, or for receiving or retaining security clearances.
Adams’s false representations have required Federal Investigative Services to reopen and rework numerous background investigations that were assigned to her during the time period of her falsifications, at an estimated cost of at least $10,000 to the U.S. government.
Federal Investigative Services has a robust integrity assurance program which utilizes a variety of methods to ensure the accuracy of reported information. The falsification of investigative case work by the defendant was detected through the program.
This is one of numerous cases prosecuted by the U.S. Attorney’s Office for the District of Columbia since 2008 involving false representations by background investigators and record checkers working on federal background investigations. In addition to Adams, 19 other background investigators and two record checkers have been convicted of charges.
Federal Investigative Services, through its workforce of approximately 7,600, including 6,100 field investigators, is responsible for conducting background investigations for numerous federal agencies and their contractors, on individuals either employed by or seeking employment with those agencies or contractors. Federal Investigative Services conducted more than 2.3 million investigations during the 2013 fiscal year. More than 700,000 of these investigations involved applicants for access or continued access to classified information.
In performing background investigations, the investigators conduct interviews of individuals who have information about the person who is the subject of the review. In addition, the investigators seek out, obtain, and review documentary evidence, such as employment records, to verify and corroborate information provided by either the subject of the background investigation or by persons interviewed during the investigation. After conducting interviews and obtaining documentary evidence, the investigators prepare a Report of Investigation containing the results of the interviews and document reviews, and electronically submit the material to OPM in Washington, D.C. OPM then provides a copy of the investigative file to the requesting agency, which can use the information to determine an individual’s eligibility for employment or a security clearance.
In announcing the plea, U.S. Attorney Machen and Inspector General McFarland praised the efforts of Assistant Special Agent in Charge Nathaniel Smith, OPM, Office of the Inspector General, and Philip Kroop, David Newcomer, and Jeffrey Addicks, OPM, Federal Investigative Services. They also acknowledged the work of Paralegal Specialist Donna Galindo of the U.S. Attorney’s Office, as well as Assistant U.S. Attorney Ellen Chubin Epstein, who investigated and prosecuted this matter.
14-200Federal Jury Convicts Leader of ID Theft Conspiracy on Several ChargesRead the Press Release
in a Room Full of Stolen and Fake IDs
DALLAS — A federal jury deliberated just under two hours before convicting a Dallas County man on all nine counts of an indictment charging him with various federal felony offenses stemming from an identity (ID) theft conspiracy he ran in the metroplex from October 2009 to July 2013. With this conviction, six of the seven defendants charged in the conspiracy have been convicted; one remains a fugitive. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Anthony Minor, 26, of Cedar Hill, Texas, was convicted on one count of conspiracy to commit bank fraud, five counts of bank fraud, one count of using or trafficking in an unauthorized access device, and two counts of aggravated identification theft.
Minor’s girlfriend, Tilisha Morrison, 24, of Dallas, pleaded guilty in April 2014 to one count of conspiracy to commit bank fraud. Defendants Katrina Thomas, 40, of Garland, Texas; Kario Butler, 28, of Mansfield, Texas; Cyrus Pritchett, 24, of Dallas; and Jamilah Karriem, 20, of Dallas and Desoto, Texas; also pleaded guilty earlier this year to the conspiracy offense. Defendant Karen Mendoza, 43, most recently of Dallas, remains a fugitive.
Minor was the leader of the conspiracy. The government presented evidence at trial that he stole identities in a variety of ways, including purchasing them from a group of safe robbers and recruiting a Federal National Mortgage Association (Fannie Mae) employee, Katrina Thomas, to steal more than 1000 identities from her Fannie Mae workstation. Once the IDs were in hand, Minor and Morrison accessed the victims’ bank accounts and performed hundreds of account take-overs. As part of the conspiracy, they recruited their co-conspirators to walk into banks and withdraw cash.
Minor was eventually caught and arrested at the W Hotel in Dallas, in a room full of stolen and fake IDs, counterfeit checks, a laptop containing a template for the Texas Department of Public Safety Temporary Driver’s License, printer, and a $900 bottle of Dom Perignon that he had just ordered from room service using a stolen credit card. He had rented the room using another’s identification.
The government presented further evidence at trial that Minor and the conspirators stole personal identifying information for true Bank of America and JP Morgan Chase account holders (the victim-customers) and used this information to fraudulently access funds contained in their bank accounts. They also created false identities using the stolen personal identifying information.
Minor is to be sentenced by U.S. District Judge Sam A. Lindsay on January 20, 2015; others are scheduled to be sentenced in the next few months. The conspiracy to commit bank fraud count, as well as each of the bank fraud counts, carry a maximum statutory penalty of 30 years in federal prison and a $1 million fine. The producing, using or trafficking in a counterfeit access device count carries a maximum statutory penalty of 10 years in prison and a $250,000 fine. The maximum statutory penalty for the identity theft count is a mandatory term of two years in prison, to be served consecutively to any other term or imprisonment, and a $250,000 fine.
The case was investigated by the U.S. Secret Service and the Federal Housing Finance Agency Office of Inspector General.
Assistant U.S. Attorney P. J. Meitl and Special Assistant U.S. Attorney Christopher G. Poor are prosecuting.
Father and Son Plead Guilty to Sex TraffickingRead the Press Release
COLUMBUS – Keith A. Arrick Sr., 47, of Ft. Mitchell, Kentucky pleaded guilty in U.S. District Court today to sex trafficking by force, fraud or coercion. His son, Keith A. Arrick Jr., 21, of Columbus, Ohio pleaded guilty in July to sex trafficking of children.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine and members of the Central Ohio Human Trafficking Task Force, including Marlon V. Miller, Special Agent in Charge, U.S. Homeland Security Investigations, Colonel Paul Pride of the Ohio State Highway Patrol and Columbus Police Chief Kim Jacobs announced the plea entered today before U.S. District Senior Judge Peter C. Economus.
The investigation by the Central Ohio Human Trafficking Task Force found that between September 2013 and February 2014, the men used various hotels in the Columbus area to harbor women, including a minor female, to engage in commercial sex acts for the financial benefit of the defendants. The men recruited customers through internet websites by posting photos of the women or others who resembled the women, instructing the women how much to charge for the various acts then kept a portion of the money for themselves, and provided the women with illegal narcotics, including heroin. The investigation found that one victim was brought to Columbus from Kentucky. Keith A. Arrick Sr. used physical violence and threats of physical violence if the victims indicated they wished to stop performing commercial sex acts.
Sex trafficking by force, fraud or coercion is punishable by at least 15 years and up to life in prison. Sex trafficking of a minor is punishable by at least ten years and up to life in prison. Both men remain in custody as sentencing is pending.
U.S. Attorney Stewart commended the cooperative investigation by the Central Ohio Human Trafficking Task Force, which was formed in 2012 and is part of the Ohio Attorney General’s Ohio Organized Crime Investigations Commission, and which also includes authorities from the Attorney General's Bureau of Criminal Investigation (BCI), U.S. Homeland Security Investigations, Columbus Division of Police, Ohio State Highway Patrol, Powell Police Department, Federal Bureau of Investigation and the Delaware County Prosecutor's Office. Assistant U.S. Attorney Heather Hill is representing the government in this case.
East Side Bloods Gang Member Sentenced <br /> to 30 Years in Prison for Racketeering Conspiracy, <br /> Attempted Murder and Firearms ChargesRead the Press Release
An East Side Bloods (ESB) gang member from Scottsdale, Arizona, was sentenced late yesterday to serve 30 years in prison for his role in the violent street gang, which operated on the Salt River Pima-Maricopa Indian Community reservation.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney John S. Leonardo of the District of Arizona made the announcement after the sentence was imposed by U.S. District Court Judge David G. Campbell of the District of Arizona.
Denicio Elrayno Francisco, 28, a long-time member of East Side Bloods, was convicted by a jury on Oct. 31, 2013, of conspiracy to participate in a pattern of racketeering activity, attempted murder in aid of racketeering and use of a firearm in furtherance of a crime of violence.
According to evidence presented at trial, from August 2004 through January 2013, the ESB was a criminal street gang, which perpetuated itself and enriched its members through activities such as murder, robbery, aggravated assault, fraudulent “straw” purchases of firearms and the distribution of drugs, including marijuana and cocaine. The gang preserved and protected its power on the reservation and adjoining communities through the use of intimidation, violence, assault, drive-by shootings and murder. The gang also retaliated with violence and threats of violence against victims who contacted law enforcement to report the gang-related crimes.
Evidence at trial demonstrated that Francisco arranged a meeting with a member of the Salt River Pima-Maricopa Indian Community, ostensibly to discuss some gang-related conflicts on the reservation. On Nov. 23, 2012, Francisco arrived at the meeting with two other armed ESB members wearing gang colors. He stepped out of his car, yelled a gang slogan and opened fire with an AK-47 assault rifle toward the intended victim. Those present with the intended victim included a five-month-old baby, the wheelchair-bound homeowner, and seven other adults. The intended victim was struck by a bullet in the left forearm, resulting in permanent injury. Testimony at trial also showed that Francisco committed the attempted murder to maintain his position and increase his status within the ESB.
In addition to the prison term imposed, Francisco was also sentenced to serve five years of supervised release.
The defendant’s brother, Martinez Francisco Jr., 31, was also convicted at the same trial and was sentenced on Feb. 10, 2014, to serve 30 years in prison for participating in a racketeering conspiracy and illegal firearms trafficking. Eight additional gang members who entered guilty pleas in the case were previously sentenced to terms ranging from 27 to 156 months in federal prison.
The case was investigated by the Arizona Department of Public Safety’s Gang and Immigration Intelligence Team Enforcement Mission (GIITEM), the Mesa Police Department, the Salt River Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Substantial assistance was provided by the FBI, Scottsdale Police Department and Tempe Police Department.
The case was prosecuted by Hans Miller of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Keith E. Vercauteren of the District of Arizona.Douglas County Meth Dealer Receives 10-year Federal SentenceRead the Press Release
EUGENE, Ore. – Scott Arnam Wiley, 46, of Douglas County, Oregon, was sentenced today by U.S. District Court Chief Judge Ann Aiken to a 10-year prison term for possession with intent to distribute methamphetamine. Following his release from prison, Wiley will be on supervised release for five years.
Wiley was a significant and long-term methamphetamine dealer in Douglas County, Oregon with prior convictions for manufacture of methamphetamine and distribution of a controlled substance. The Douglas Interagency Narcotics Team (DINT) and the DEA conducted an investigation into his drug distribution and he was arrested in September 2012. Wiley’s residence was searched, and more than a half-pound of methamphetamine was located. His residence was gated, and had a reinforced door and security cameras in order to deter and detect law enforcement. After the United States filed a lis pendens on the property to seek its forfeiture, Wiley agreed to sell the property and the residence was demolished.
This case was investigated by the Douglas Interagency Narcotics Team and the Eugene Resident Office of the DEA. Assistant U. S. Attorney Jeffrey Sweet prosecuted the case.
Dauphin County Man Charged in Federal Child Sex Trafficking CaseRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Coy C. Klinger, 37, of Lower Paxton Township, Pennsylvania was indicted yesterday by a federal grand jury in Harrisburg charging him with sex trafficking of children, coercion and enticement, production of child pornography and possession of child pornography. The indictment also seeks forfeiture of property involved in the alleged criminal conduct.
According to U.S. Attorney Peter Smith, Klinger allegedly sought out young girls and women online and paid them to engage in acts of prostitution from his home in Lower Paxton Township between January and June 2014. Evidence was allegedly found on electronic devices in Klinger's home. The devices, including an Iphone, a cell phone, desktop and laptop computers, and a Nikon camera, as well as the residence itself located at 5716 Kenwood Avenue, are listed in a notice of forfeiture in the indictment.
Klinger appeared today before Chief Magistrate Judge Martin C. Carlson for his initial appearance. Klinger was detained pending a detention hearing scheduled for September 15.
This case is being investigated by the Federal Bureau of Investigation and the Lower Paxton Township Police Department and is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
This case was brought as part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
If convicted, Klinger faces a mandatory minimum of 15 years imprisonment on the production charge, a mandatory minimum 10 years imprisonment on the sex trafficking charge, a mandatory minimum 10 years imprisonment on the coercion and enticement charge and a statutory maximum of life imprisonment.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
County Deputy Auditor in Indiana <br /> Charged with Embezzlement and Tax FraudRead the Press Release
A former LaPorte County deputy auditor has been indicted by a federal grand jury in the Northern District of Indiana for embezzling over $150,000 from the LaPorte County government and committing tax fraud.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David Capp of the Northern District of Indiana made the announcement.
The indictment returned on Sept. 10, 2014, charges Mary Ray, 66, of La Porte, Indiana, with two counts each of theft of government monies and of making false statements on a tax return.
According to the indictment, from September 2011 through December 2012 and while she was working as an auditor, Ray embezzled more than $5,000 from LaPorte County, which had received more than $10,000 in federal benefits in both 2011 and 2012.
The indictment also alleges that Ray underreported her income on her U.S. Individual Tax Returns in 2011 and 2012 by failing to report the embezzled funds.
An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty.This case was investigated by the FBI and IRS-Criminal Investigation, with assistance from the Indiana State Police, the LaPorte County Sheriff’s Department and the Indiana State Board of Accounts. The case is being prosecuted by Trial Attorney Peter Halpern of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Donald J. Schmid of the Northern District of Indiana.
Corrected ATTORNEY GENERAL HOLDER RECOGNIZES LOCAL FEDERAL PROSECUTORSRead the Press Release
Albany, NY – Assistant United States Attorneys Elizabeth Coombe, Richard Belliss and Wayne Myers and former Assistant United States Attorney John Katko were among the 243 members of the Department of Justice recognized by Attorney General Eric Holder at the 30th annual Director’s Awards Ceremony on Wednesday in Washington, D.C.
In his prepared remarks, Attorney General Holder told the awardees, “Locally, nationally, and internationally, you represent the very best that this Department has to offer. Your work embodies our ongoing commitment – not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.”
Assistant United States Attorneys Elizabeth Coombe, Richard Belliss, and Wayne Myers were recognized for the successful investigation and prosecution of Timothy McGinn and David Smith, two Albany-area securities brokers who devised and executed a $30 million investment fraud scheme. The defendants owned and operated a prominent Albany broker-dealer specializing in the securitization of burglar alarm, broadband, cable, and telephone services contracts. Along with associates who were also indicted, convicted, and sentenced, the lead defendants used a complex arrangement of trusts, holding companies, and layered financial transactions to siphon investor funds for personal expenses; to pay purported returns to some investors to encourage additional investment and conceal significant losses; to cover operating expenses of the broker-dealer; and to conceal from both investors and regulators these improper diversions of investor funds. The defendants, whose criminal conduct wiped out the life savings of numerous investors, received sentences of 15 and 10 years in prison.
Former Assistant United States Attorney John Katko was recognized for the investigation and racketeering prosecution of 25 members of the “Bricktown” and “V-NOT” street gangs. Both gangs were involved in multiple murders, armed assaults, and robberies, as well as firearm and cocaine base trafficking. The investigations solved numerous acts of violence that had occurred during a 2010 gang war, including the tragic drive-by murder of an uninvolved high school basketball star and the killing of a 20-month-old child in a misguided act of retaliation.
United States Attorney Richard S. Hartunian said, “We thank Attorney General Holder for recognizing the hard work of four of our dedicated prosecutors. Our office has 41 other diligent lawyers who fight crime and injustice every day on behalf of the citizens in our district.”
Coatesville Man Admits Trafficking A Child for SexRead the Press Release
PITTSBURGH - A Chester County resident pleaded guilty in federal court to a charge of sex trafficking of a child, United States Attorney David J. Hickton announced today.
Rasul Abernathy, 33, pleaded guilty to one count before Senior United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that in and around December of 2012, to in and around March 2013, Abernathy knowingly recruited, enticed, harbored, transported, provided and obtained a minor, John Doe, to engage in a commercial sex acts.
Judge Hornak scheduled sentencing for Jan. 8, 2015, at 9:30 a.m. The law provides for a total mandatory minimum sentence of 10 years and a maximum sentence of life in prison, a fine of $250,000, or both. Pursuant to the defendant’s plea agreement with the government, Abernathy agreed to a sentence of 10 years of imprisonment. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Allegheny County Police Department and the City of Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Abernathy.
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.justice.gov/psc.
Clinton, Maryland Man Sentenced to 120 Months for Transporting A Minor Across State Lines for ProstitutionRead the Press Release
RICHMOND, Va. – Mustafa Muhammad, 36, of Clinton, Maryland, was sentenced today to 120 months in prison, followed by 5 years of supervised release, for transporting a minor from Maryland to Virginia for prostitution.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; and Clark E. Settles, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI), made the announcement after sentencing by United States District Judge Payne.Muhammad was found guilty by a federal jury on June 24, 2014. Evidence at trial established that Muhammad met a 16-year old runaway online in February 2014, and then began communicating with her via text message. Later that month, Muhammad and the juvenile met in person in Maryland, and Muhammad posted an advertisement on backpage.com featuring the juvenile and offering her for prostitution. The juvenile provided Muhammad some of the money she made from prostitution. In March 2014, Muhammad suggested that they travel to Virginia for the juvenile to work in prostitution, and, so, on March 14, 2014, Muhammad drove the juvenile from Maryland to a Holiday Inn in Fredericksburg, Virginia. Muhammad then posted another advertisement on backpage.com in Fredericksburg, advertising the juvenile for prostitution. A Stafford Sheriff’s deputy was looking for possible prostitution activity on backpage.com and discovered the juvenile’s ad. The deputy then arranged to meet the juvenile and discovered that she was a 16-year old runaway.
This case was investigated by the Federal Bureau of Investigation, Homeland Security Investigations, Stafford County Sheriff’s Office, and Spotsylvania County Sheriff’s Office. Assistant United States Attorney Heather L. Hart prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-55.
Chief Technology Officer of Liberty Reserve Pleads GuiltyRead the Press Release
The former chief technology officer of Liberty Reserve, a company that operated one of the world’s most widely used digital currency services and allegedly laundered billions in suspected criminal proceeds, pleaded guilty today in the Southern District of New York in connection with his role in designing and maintaining the technological infrastructure for Liberty Reserve.
Assistant Attorney General Leslie R. Caldwell for the Justice Department’s Criminal Division and U.S. Attorney Preet Bharara of the Southern District of New York made the announcement.
Mark Marmilev, 35, of Brooklyn, New York, pleaded guilty today before U.S. District Judge Denise L. Cote to conspiring to operate an illegal unlicensed money transmitting business that he knew involved the transmission of funds derived from criminal activity. Sentencing is scheduled for Dec. 12, 2014.
“Marmilev designed and maintained a massive criminal infrastructure in cyberspace for one of the world’s most widely used digital currency systems, which laundered billions in criminal proceeds,” said Assistant Attorney General Caldwell. “This is the third conviction in the largest international money laundering case ever brought by the department, and we will continue to ensure that virtual currencies are not misused to facilitate criminals hiding from the U.S. justice system.”
“As the chief technology officer of Liberty Reserve, Mark Marmilev was responsible for the infrastructure of a global payment processor and money transfer system that catered largely to criminals,” said U.S. Attorney Bharara. “With his guilty plea today, we are one step closer to holding to account everyone integrally involved in this sprawling Internet enterprise that served as a central financial institution for cyber criminals and illegal transactions of numerous kinds.”
According to allegations contained in the indictment and statements made in related court proceedings, Liberty Reserve was incorporated in Costa Rica in 2006 and billed itself as the Internet’s “largest payment processor and money transfer system.” Liberty Reserve was created, structured and operated to help users conduct illegal transactions anonymously and launder the proceeds of their crimes, and it emerged as one of the principal money transfer agents used by cybercriminals around the world to distribute, store, and launder the proceeds of their illegal activity. Liberty Reserve was used extensively for illegal purposes, functioning as the bank of choice for the criminal underworld because it provided an infrastructure that enabled cybercriminals around the world to conduct anonymous and untraceable financial transactions.
According to court records, before being shut down by the government in May 2013, Liberty Reserve had more than one million users worldwide, including more than 200,000 users in the United States, who conducted approximately 55 million transactions through its system totaling more than $6 billion in funds. These funds encompassed suspected proceeds of credit card fraud, identity theft, investment fraud, computer hacking, child pornography, narcotics trafficking and other crimes. Marmilev was an associate of Liberty Reserve founder Arthur Budovsky and served as Liberty Reserve’s chief technology officer. In that role, Marmilev was principally responsible for designing and maintaining Liberty Reserve’s technological infrastructure.
Marmilev and Budovsky were among seven individuals charged in the indictment, which was unsealed on May 28, 2013, and two co-defendants – Vladimir Kats and Azzeddine el Amine – previously pleaded guilty and await sentencing. The indictment also charged Liberty Reserve with conspiracy to commit money laundering and operation of an unlicensed money transmitting business, and the charges remain pending.
This case is being investigated by the U.S. Secret Service, the Internal Revenue Service-Criminal Investigation, and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with assistance from the Secret Service’s New York Electronic Crimes Task Force. The Judicial Investigation Organization in Costa Rica, the National High Tech Crime Unit in the Netherlands, the Financial and Economic Crime Unit of the Spanish National Police, the Cyber Crime Unit at the Swedish National Bureau of Investigation and the Swiss Federal Prosecutor’s Office also provided assistance.
This case is being prosecuted jointly by the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS) and the U.S. Attorney’s Office’s Complex Frauds Unit and Asset Forfeiture Unit in the Southern District of New York, with assistance from the Criminal Division’s Office of International Affairs and Computer Crime and Intellectual Property Section.
Trial Attorney Kevin Mosley of AFMLS and Assistant U.S. Attorneys Serrin Turner, Andrew Goldstein and Christine Magdo of the Southern District of New York are in charge of the prosecution, and Assistant U.S. Attorney Christine Magdo is in charge of the forfeiture aspects of the case.
The charges contained in the indictment against certain of Marvilev’s co-defendants remain pending and are merely accusations. Those defendants are presumed innocent unless and until proven guilty.Chief Technology Officer of Liberty Reserve Pleads Guilty in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Leslie R. Caldwell, Assistant Attorney General for the Justice Department’s Criminal Division, announced that MARK MARMILEV, the former chief technology officer of Liberty Reserve, pled guilty today in Manhattan federal court to conspiring to operate an unlicensed money transmitting business that he knew involved the transmission of funds derived from criminal activity. MARMILEV was principally responsible for designing and maintaining the technological infrastructure for Liberty Reserve, a company that operated one of the world’s most widely used digital currency services. MARMILEV was arrested in Brooklyn, New York, in May 2013 and pled guilty today before U.S. District Judge Denise L. Cote.
Manhattan U.S. Attorney Preet Bharara said: “As the chief technology officer of Liberty Reserve, Mark Marmilev was responsible for the infrastructure of a global payment processor and money transfer system that catered largely to criminals. With his guilty plea today, we are one step closer to holding to account everyone integrally involved in this sprawling Internet enterprise that served as a central financial institution for cyber criminals and illegal transactions of numerous kinds.”
Assistant Attorney General Leslie R. Caldwell said: “Marmilev designed and maintained a massive criminal infrastructure in cyberspace for one of the world’s most widely used digital currency systems, which laundered billions in criminal proceeds. This is the third conviction in the largest international money laundering case ever brought by the department, and we will continue to ensure that virtual currencies are not misused to enable criminals to hide from the U.S. justice system.”
According to allegations contained in the Indictment filed against Liberty Reserve, MARMILEV, and six other individual defendants, and statements made in related court proceedings:
Liberty Reserve was incorporated in Costa Rica in 2006 and billed itself as the Internet’s “largest payment processor and money transfer system.” Liberty Reserve was created, structured and operated to help users conduct illegal transactions anonymously and launder the proceeds of their crimes. It emerged as one of the principal money transfer agents used by cybercriminals around the world to distribute, store, and launder the proceeds of their illegal activity. Liberty Reserve was used extensively for illegal purposes, functioning as the bank of choice for the criminal underworld because it provided an infrastructure that enabled cybercriminals around the world to conduct anonymous and untraceable financial transactions.
Before being shut down by the U.S. government in May 2013, Liberty Reserve had more than one million users worldwide, including more than 200,000 users in the United States, who conducted approximately 55 million transactions through its system totaling more than $6 billion in funds. These funds encompassed suspected proceeds of credit card fraud, identity theft, investment fraud, computer hacking, child pornography, narcotics trafficking, and other crimes.
MARMILEV was an associate of Liberty Reserve founder Arthur Budovsky and served as Liberty Reserve’s chief technology officer. In that role, MARMILEV was principally responsible for designing and maintaining Liberty Reserve’s technological infrastructure.
MARMILEV, 35, of Brooklyn, New York, pled guilty to one count of conspiring to operate an unlicensed money transmitting business that failed to comply with federal registration requirements and that MARMILEV knew involved the transmission of funds derived from criminal activity, which carries a maximum sentence of five years in prison. A sentencing date has not yet been scheduled. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Marmilev and Budovsky were among seven individuals charged in the indictment, which was unsealed on May 28, 2013, and two co-defendants – Vladimir Kats and Azzeddine el Amine – previously pleaded guilty and await sentencing. The indictment also charged Liberty Reserve with conspiracy to commit money laundering and operation of an unlicensed money transmitting business, and the charges remain pending.
Mr. Bharara praised the outstanding work of the United States Secret Service, the Internal Revenue Service-Criminal Investigation, and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, which worked together in this case as part of the Global Illicit Financial Team. Mr. Bharara also thanked the United States Secret Service’s New York Electronic Crimes Task Force for their extraordinary assistance with the investigation. Additionally, Mr. Bharara specially thanked all the international law enforcement agencies that assisted in the investigation, in particular, the Judicial Investigation Organization in Costa Rica, the National High Tech Crime Unit in the Netherlands, the Spanish National Police, Financial and Economic Crime Unit, the Cyber Crime Unit at the Swedish National Bureau of Investigation, and the Swiss Federal Prosecutor’s Office.
This case is being prosecuted jointly with the Department of Justice’s Asset Forfeiture and Money Laundering Section (“AFMLS”), which is overseen by Assistant Attorney General Leslie R. Caldwell. Mr. Bharara thanked AFMLS for its partnership and also thanked the Department of Justice’s Office of International Affairs and Computer Crime and Intellectual Property Section for their support.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit and Money Laundering and Asset Forfeiture Unit. Assistant United States Attorneys Serrin Turner, Andrew Goldstein, and Christine Magdo of the Southern District of New York and Trial Attorney Kevin Mosley of AFMLS are in charge of the prosecution, and Assistant United States Attorney Christine Magdo is in charge of the forfeiture aspects of the case.
The charges contained in the Indictment against certain of MARMILEV’s co-defendants remain pending and are merely accusations. Those defendants are presumed innocent unless and until proven guilty.
Black P-Stones Gang Member Sentenced to over 20 Years in Prison for Racketeering Conspiracy and Firearm ChargesRead the Press Release
A 26-year-old man from Newport News, Virginia, was sentenced today to serve 255 months in prison, followed by five years of supervised release, for engaging in numerous gang-related crimes as a member of the Black P-Stones, including the shooting of a rival gang member, marijuana dealing and lying to a federal grand jury.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office made the announcement after sentence was imposed by U.S. District Judge Arenda Wright Allen.
According to a statement of facts filed with his plea agreement, Enrique Omar Hinton, aka “Rico,” admitted that he was a “foot soldier” in a violent street gang called the Black P-Stones, also referred to as the P-Stone Bloods and Cobra Stones. The Black P-Stones operated primarily in the Beechmont, Courthouse Green, and Woodview neighborhoods in the Denbigh area of Newport News, and its members engaged in various criminal activities including murders, robberies, drug trafficking, and obstruction of justice.
According to the statement of facts, Hinton joined the gang in 2005, and as a foot soldier, he sold marijuana for the gang, carried firearms, attended gang meetings and planned and participated in the gang’s criminal activities. Additionally, on Dec. 10, 2008, Hinton and others retaliated against a rival gang member who exhibited disrespect toward the girlfriend of a Black P-Stones member. Approximately seven to eight bullets were fired at the rival gang member’s home, with bullets entering the living room and front door while two people were inside.
Hinton also admitted that on July 13, 2009, he testified falsely before a federal grand jury to obstruct the investigation of the Black P-Stones and the Dec. 10, 2008, shooting.
Hinton was charged in a superseding indictment on Dec. 9, 2013, and pleaded guilty on Mar. 28, 2014, to one count of racketeering conspiracy and one count of discharging a firearm in furtherance of a crime of violence.The investigation was led by the FBI’s Safe Streets Peninsula Task Force, with the assistance of the Newport News Police Department, James City County Police Department and the Virginia State Police. This case is being prosecuted by Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Eric M. Hurt of the Eastern District of Virginia .
Black P-Stones Gang Member Sentenced to 21 Years in Prison for Racketeering Conspiracy and Firearm ChargesRead the Press Release
NORFOLK, Va. – Enrique Omar Hinton, a.k.a. “Rico,” 26, of Newport News, was sentenced today to 255 months in prison, followed by five years of supervised release, for engaging in numerous criminal activities as a member of the Black P-Stones gang, including participating in a shooting that targeted a rival gang member, trafficking marijuana, and lying to a federal grand jury.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office made the announcement after sentencing by U. S. District Judge Arenda Wright Allen.
According to a statement of facts filed with his plea agreement, Enrique Omar Hinton (a.k.a. “Rico”), admitted that he was a “foot soldier” in a violent street gang called the Black P-Stones, also referred to as the P-Stone Bloods and Cobra Stones. The Black P-Stones operated primarily in the Beechmont, Courthouse Green, and Woodview neighborhoods in the Denbigh area of Newport News, and its members engaged in various criminal activities, including murders, robberies, drug trafficking, and obstruction of justice.
According to the statement of facts, Hinton joined the gang in 2005, and as a foot soldier, he sold marijuana for the gang, carried firearms, attended gang meetings, and planned and participated in the gang’s criminal activities. Additionally, on Dec. 10, 2008, Hinton and others retaliated against a rival gang member who exhibited disrespect toward the girlfriend of a Black P-Stones member. Approximately seven to eight bullets were fired at the rival gang member’s home, with bullets entering the living room and front door while two people were inside.
Hinton also admitted that on July 13, 2009, he testified falsely before a federal grand jury to obstruct the investigation of the Black P-Stones and the Dec. 10 shooting.Hinton was charged in a superseding indictment on Dec. 9, 2013, and he pleaded guilty on March 28, 2014 to one count of racketeering conspiracy and one count of discharging a firearm in furtherance of a crime of violence.
The investigation was led by the FBI’s Safe Streets Peninsula Task Force, with the assistance of the Newport News Police Department, James City County Police Department, and the Virginia State Police. This case is being prosecuted by Assistant U.S. Attorney Eric M. Hurt and Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section.
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. 4:13-cr-96.Tweet
Attorney General Recognizes Tyler Federal ProsecutorRead the Press Release
Department of Justice
Office of Public AffairsWASHINGTON – Assistant U.S. Attorney (AUSA) Traci L. Kenner of the U.S. Attorney’s Office in the Eastern District of Texas was one of 243 members of the Department of Justice recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 30th annual Director’s Awards Ceremony on Sep. 10, 2014 in Washington D.C.
The Eastern District of Texas was one of 44 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In his prepared remarks to awardees, Attorney General Holder said, “Locally, nationally, and internationally, you represent the very best that this Department has to offer. Your work embodies our ongoing commitment – not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.”
EOUSA Director Monty Wilkinson echoed those sentiments, saying to the recipients, “You have persevered, and remained focused and motivated – achieving remarkable results in work that makes a difference in the lives of citizens across our great country. The vast scope of your collective accomplishments is nothing short of exceptional.”
Traci Kenner, of the Tyler office, was recognized for her outstanding performance as an Appellate AUSA and the Eastern District of Texas’s Appellate Chief. During her tenure, AUSA Kenner has made significant improvements to the district appellate program. In particular, AUSA Kenner’s exemplary handling of the appeal of United States v. Ebron, a capital murder trial originating in a Bureau of Prisons facility in the Eastern District of Texas, preserved a conviction and death sentence in a case with unusual appellate issues that could have -- but for AUSA Kenner -- resulted in a reversal and retrial. Instead, the final outcome was an affirmance in the Court of Appeals and denial of certiorari by the United States Supreme Court.
“For many years, Traci has honed her professional skills to become one of the most skilled appellate lawyers in the entire Department of Justice,” said U.S. Attorney John M. Bales. “In the Eastern District of Texas, she handles our most complicated appeals, including the death penalty cases for which she has been so deservedly recognized. We are a much better office because of Traci’s work and I am pleased that she has been afforded this honor – it is certainly deserved.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Attorney General Recognizes Eastern District of Texas EmployeesRead the Press Release
Department of Justice
Office of Public AffairsWASHINGTON – The Litigation Support Team for the U.S. Attorney’s Office in the Eastern District of Texas was recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 30th annual Director’s Awards ceremony on Sep. 10, 2014 in Washington D.C.
The Eastern District of Texas was one of 44 districts represented at the ceremony which recognized 243 members of the Department of Justice at a ceremony held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In his prepared remarks to awardees, Attorney General Holder said, “Locally, nationally, and internationally, you represent the very best that this Department has to offer. Your work embodies our ongoing commitment – not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.”
EOUSA Director Monty Wilkinson echoed those sentiments, saying to the recipients, “You have persevered, and remained focused and motivated – achieving remarkable results in work that makes a difference in the lives of citizens across our great country. The vast scope of your collective accomplishments is nothing short of exceptional.”
The Litigation Support Team of Janet Holley and Garin Reetz in the Plano office; Keary Conrad in the Sherman office; Glenda Martin in the Beaumont office; and Donna Krise in the Lufkin office, were recognized for their outstanding vision and teamwork in support of the prosecutorial mission. While the unit officially formed under Ms. Holley’s supervision in 2010, the evolution of this team started before 2010, as they independently developed innovative practices to provide litigation support in their offices. Once formed, the members combined their individual knowledge and talents to elevate service across all offices. They inherently understand how to enhance a case by court presentations, bringing the district out of the dark ages of overhead projectors and flipcharts to state-of-the-art multi-media evidence presentations.
“Today’s jurors are very sophisticated and they expect to be presented with evidence that is not only organized and persuasive but is presented in a fashion that helps them understand increasingly complex cases," said U.S. Attorney John M. Bales. “The litigation support provided by our award winning team accomplishes that mission in spades. Each of them has invested many hours in training and each of them spend many more hours in helping our prosecutors prepare what I believe are the best presented cases in east Texas. These individuals are the consummate team players. I am pleased that they have been recognized by our Executive Office but I not surprised – they are also great people.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Attorney General Recognizes Beaumont Lead ProsecutorRead the Press Release
Department of Justice
Office of Public AffairsWASHINGTON – Assistant U.S. Attorney Matt Quinn of the U.S. Attorney’s Office in the Eastern District of Texas was one of 243 members of the Department of Justice recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 30th annual Director’s Awards Ceremony on Sep. 10, 2014 in Washington D.C.
The Eastern District of Texas was one of 44 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In his prepared remarks to awardees, Attorney General Holder said, “Locally, nationally, and internationally, you represent the very best that this Department has to offer. Your work embodies our ongoing commitment – not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.”
EOUSA Director Monty Wilkinson echoed those sentiments, saying to the recipients, “You have persevered, and remained focused and motivated – achieving remarkable results in work that makes a difference in the lives of citizens across our great country. The vast scope of your collective accomplishments is nothing short of exceptional.”
Matthew C. Quinn was recognized for his outstanding contributions in leading the formation of the office in Texarkana, Arkansas, while he was an AUSA for the Western District of Arkansas. AUSA Quinn volunteered to be the first AUSA in the newly formed office, where he worked to build relationships with federal agents and local officers throughout approximately 20 counties. He was central to a new partnership between United States Attorneys’ offices for the Eastern District of Texas and Western District of Arkansas who share the Texarkana office. In addition, AUSA Quinn’s efforts have led to large drug-trafficking investigations and prosecutions including Operation Stateline Sweep, Operation Crystal Clear, Operation Street Sweeper, and Operation Ice Pick. His caseload and tireless leadership in the southern part of the district have had an enormous impact on the furtherance of justice in this previously underserved area. AUSA Quinn left the Western District of Arkansas in June 2014 and joined the Eastern District of Texas as the Attorney in Charge of the Beaumont office.
“Matt Quinn’s accomplishments as an AUSA in Texarkana are the stuff of legend,” said U.S. Attorney John M. Bales. “He started the work from scratch and four years later, dozens of dangerous criminals were justly incarcerated and federal, state and local law enforcement had effectively coalesced around Matt’s leadership. I have no doubt that Matt will accomplish similarly great things in the Golden Triangle for the people of the Eastern District of Texas.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Attorney General Recognizes Beaumont Federal ProsecutorRead the Press Release
Department of Justice
Office of Public AffairsWASHINGTON – Assistant U.S. Attorney John B. Ross of the U.S. Attorney’s Office in the Eastern District of Texas was one of 243 members of the Department of Justice recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 30th annual Director’s Awards Ceremony on Sep. 10, 2014 in Washington D.C.
The Eastern District of Texas was one of 44 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In his prepared remarks to awardees, Attorney General Holder said, “Locally, nationally, and internationally, you represent the very best that this Department has to offer. Your work embodies our ongoing commitment – not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.”
EOUSA Director Monty Wilkinson echoed those sentiments, saying to the recipients, “You have persevered, and remained focused and motivated – achieving remarkable results in work that makes a difference in the lives of citizens across our great country. The vast scope of your collective accomplishments is nothing short of exceptional.”
John B. Ross, of the Beaumont office, was recognized for his distinguished service and outstanding success in related prosecutions of the Solid Wood Soldiers (SWS). The SWS is a race-based organization that began to grow significantly in the late 2000s. Led by AUSA Ross, a multi-agency team of agents and investigators leveraged the investigation of one murder to severely disrupt and dismantle the operation and growth of the SWS criminal enterprise. In so doing, the team also effectively disrupted the Aryan Brotherhood and Aryan Circle gangs. White supremacist gang leaders who had sworn never to cooperate with the government were induced to do so. AUSA Ross used available federal statutes and investigative tools to send a substantial portion of the SWS leadership to prison to serve life sentences. This successful VICAR (Violent Crime in Aid of Racketeering) prosecution highlights effective federal law enforcement and served to deter the SWS and other racketeering organizations.
“When John was asked to take on an unsolved and unspeakably grisly murder, he did so with the knowledge that we might not ever know what had happened to James Sedtal,” said U.S. Attorney John M. Bales. “John assembled a task force of agents and officers who worked tirelessly to find out the answers and in the process, they completely unspooled the Solid Wood Soldiers, essentially crippling that gang’s organizational hierarchy. John Ross’ resolute work is a great example of how the Eastern District of Texas takes on cases that are much more than just solving a crime – they change the community for the better.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Attorney General Holder Announces Joyce Branda to Serve as Acting Assistant Attorney General for the Civil DivisionRead the Press Release
Attorney General Eric Holder released the following statement Thursday announcing Joyce Branda as Acting Assistant Attorney General for the Civil Division:
“I am pleased that Joyce Branda, a dedicated public servant whom I’ve known for years, will serve as Acting Assistant Attorney General for the Civil Division.
“Joyce's nearly 35 years of service to the American people has been defined by her unwavering commitment to public service and distinguished by her dogged pursuit of financial and health care fraud. She has helped protect and advance the public interest by recovering billions of taxpayer dollars and holding accountable those who have defrauded the treasury.
"Over the last three years, Joyce has led the Civil Division's Commercial Litigation Branch to some of the largest settlements in its history – a track record of exemplary enforcement that I'm certain she will build upon in her new role.
"And, as Stuart Delery moves into his new role as Acting Associate Attorney General, I am confident that Joyce will lead the Civil Division with the same professionalism and exceptional skill that have been her hallmark."
Armed Career Criminal Sentenced to 15 Years in Federal Prison for Firearm PossessionRead the Press Release
Orlando, Florida – Senior U.S. District Judge G. Kendall Sharp sentenced Darrell Roby (41, Orlando) yesterday to 15 years in federal prison for possession of a firearm by a previously convicted felon. Roby was also ordered to serve a 5-year term of supervision, upon his release from prison. Roby pleaded guilty on June 2, 2014.
According to court documents, Roby sold prescription pills to a confidential informant (CI) on January 27, 2014. He also sold prescription pills and a Smith and Wesson .38 caliber revolver to a CI on February 12, 2014. Roby then agreed to sell 500 pills of Oxycodone to a CI for $12,500. The transaction was scheduled to take place at Roby’s residence on February 26, 2014. During the execution of a search warrant at Roby’s residence, Roby was found to be in possession of a stolen Glock firearm.
Roby has prior state felony convictions for burglary, possession of a firearm by a convicted felon, escape, introduction or possession of contraband in a state correctional facility, delivery of cocaine, possession of cocaine, and delivery of a controlled substance. As a previously convicted felon, he is prohibited from possessing firearms or ammunition under federal law. Because his prior criminal record includes several violent felonies and a serious drug offense, Roby qualified for enhanced sentencing as an Armed Career Criminal under federal law.
“HSI is committed to ensuring the safety of our communities,” said Susan L. McCormick, special agent in charge of HSI Tampa. “Partnerships with other law enforcement agencies, like the Metropolitan Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, increase public safety in our neighborhoods.”
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Metropolitan Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
Ana Alliegro Sentenced for Having Violated the Federal Election Campaign ActRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Ana Alliegro, 44, of Miami, was sentenced to six months in prison, six months of house arrest, and two years of supervised release by U.S. District Court Judge Robert N. Scola, Jr. for having violated the Federal Election Campaign Act in connection with the Democratic Party primary election for Florida’s 26th Congressional District.
Previously, Alliegro pled guilty to engaging in a conspiracy to make false statements to the Federal Election Commission and to violate the contribution limits of the Federal Election Campaign Act (Count 1); making a false statement (Count 2); and making illegal campaign contributions (Counts 3 & 4).
Mr. Ferrer commended the investigative efforts of the FBI’s Miami Area Corruption Task Force. The case is being prosecuted by Senior Litigation Counsel Thomas J. Mulvihill.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Alabama Man Pleads Guilty to Threatening African-American Man and a Restaurant ManagerRead the Press Release
Jeremy Heath Higgins, 28, a resident of Quinton, Alabama, pleaded guilty today before U.S. District Judge Madeline Haikala to two counts of federal civil rights violations, announced the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Alabama.
As part of the plea proceedings, Higgins admitted that on June 14, 2013, he approached and threatened an African-American man at the Alabama Rose Steakhouse, a restaurant in Quinton, Alabama, because the man was present at the restaurant with a white woman. Soon after, the couple left the bar. A manager at the Alabama Rose Steakhouse confronted Higgins because of his behavior toward the African-American man and ordered Higgins to leave the restaurant. As Higgins was being escorted from the bar, he used racial slurs, shouted a racial slur at the restaurant manager, and threatened to burn down the Alabama Rose Steakhouse. Later that evening, Higgins returned to the restaurant and threatened the restaurant manager by painting graffiti on the restaurant’s front exterior and fence.
Sentencing in this case is set for January 9, 2015.
“Threatening an individual over their race or a business for its acceptance of others has no place in a civilized society,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “The Department of Justice will vigorously prosecute those who seek to intimidate others with these types of hateful threats.”“Access to public places, like restaurants, has been at the core of the civil rights struggle,” said U.S. Attorney Joyce White Vance for the Northern District of Alabama. “Unlike the lunch counters of the 1960s, the restaurant in this case welcomed and sought to protect the rights of its African American customer. In prosecuting this case, we make clear our commitment to enforcing the civil rights of individuals and the businesses who seek to serve all, without regard to the color of their skin.”
This case is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Robin B. Mark of the Northern District of Alabama and Trial Attorney David Reese of the Justice Department’s Civil Rights Division.
Alabama Man Pleads Guilty to Threatening African-American Man and A Restaurant ManagerRead the Press Release
WASHINGTON – Jeremy Heath Higgins, 28, a resident of Quinton, Alabama, pleaded guilty today before U.S. District Judge Madeline Haikala to two counts of federal civil rights violations, announced the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Alabama.
As part of the plea proceedings, Higgins admitted that on June 14, 2013, he approached and threatened an African-American man at the Alabama Rose Steakhouse, a restaurant in Quinton, Alabama, because the man was present at the restaurant with a white woman. Soon after, the couple left the bar. A manager at the Alabama Rose Steakhouse confronted Higgins because of his behavior toward the African-American man and ordered Higgins to leave the restaurant. As Higgins was being escorted from the bar, he used racial slurs, shouted a racial slur at the restaurant manager, and threatened to burn down the Alabama Rose Steakhouse. Later that evening, Higgins returned to the restaurant and threatened the restaurant manager by painting graffiti on the restaurant’s front exterior and fence.
Sentencing in this case is set for January 9, 2015.“Threatening an individual over their race or a business for its acceptance of others has no place in a civilized society,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “The Department of Justice will vigorously prosecute those who seek to intimidate others with these types of hateful threats.”
“Access to public places, like restaurants, has been at the core of the civil rights struggle,” said U.S. Attorney Joyce White Vance for the Northern District of Alabama. “Unlike the lunch counters of the 1960s, the restaurant in this case welcomed and sought to protect the rights of its African American customer. In prosecuting this case, we make clear our commitment to enforcing the civil rights of individuals and the businesses who seek to serve all, without regard to the color of their skin.”
This case is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Robin B. Mark of the Northern District of Alabama and Trial Attorney David Reese of the Justice Department’s Civil Rights Division.
###Akron Man Charged with Sex Trafficking of A Minor, Production of Child PornographyRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged Antonio L. Sibley, 38, of Akron, Ohio with the sex trafficking of a minor and production of child pornography in an indictment returned in Columbus, Ohio.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, along with members of the Central Ohio Human Trafficking Task Force, including Ohio Attorney General Mike DeWine, Marlon V. Miller, Special Agent in Charge, U.S. Homeland Security Investigations, Colonel Paul Pride of the Ohio State Highway Patrol and Columbus Police Chief Kim Jacobs announced the indictment today.
The indictment alleges that on and around July 30 Sibley advertised his victim on internet websites for paid sexual services by posting photos of the minor. The investigation found that Sibley was allegedly harboring the female in a motel in Whitehall, Ohio and had provided her with a cell phone and condoms. The indictment alleges that Sibley coerced his victim to provide sexual services to customers that responded to the online escort ads for commercial sexual activity.
The indictment charges Sibley with sex trafficking of a minor, a crime punishable by a sentence ranging from 15 years to life. He is also charged with production of child pornography, a crime punishable by a sentence ranging from 15 to 30 years.
Sibley was arrested on August 11, 2014, by members of the Central Ohio Human Trafficking Task Force at the Casa Villa Motel in Whitehall, Ohio, and remains in custody.
U.S. Attorney Stewart commended the investigation of this case by the Central Ohio Human Trafficking Task Force, which was formed in 2012 and is part of the Ohio Attorney General’s Ohio Organized Crime Investigations Commission, also includes authorities from the Attorney General's Bureau of Criminal Investigation (BCI), Columbus, Division of Police, Homeland Security Investigations (HSI), Powell Police Department, Federal Bureau of Investigation and the Delaware County Prosecutor's Office. Assistant U.S. Attorney Heather Hill is representing the government in this case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Abilene Man Sentenced to 168 Months in Federal Prison on Child Pornography ChargeRead the Press Release
ABILENE, Texas — Steven Edward Robb, 59, of Abilene, Texas, was sentenced today by U.S. District Judge Jorge A. Solis to 168 months in federal prison, following his guilty plea in April 2014 to one count of receipt of child pornography. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
According to documents filed in the case, in July 2013, Robb knowingly received two video files depicting minor females engaging in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Abilene Police Department investigated the case. Assistant U.S. Attorney Steven M. Sucsy of the U.S. Attorney’s Office in Lubbock, Texas, prosecuted.
25 Waco Area Aryan Brotherhood Members and Associates Charged in Connection with Methamphetamine Distribution OperationRead the Press Release
In the Waco area today, federal and state authorities arrested 21 Aryan Brotherhood (AB) members and associates, including ranking AB members 54–year-old Wayne Huisinger of Belton, TX, and 39–year-old Robert Eaton of Kempner, Texas, for their roles in a methamphetamine distribution operation announced United States Attorney Robert Pitman, Federal Bureau of Investigation Special Agent in Charge Christopher H. Combs, San Antonio Division, and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
A federal grand jury indictment, unsealed this afternoon, charges 20 of the 21 arrested, as well as four others who were already in custody prior to today, with one count of conspiracy to distribute methamphetamine. Robert Helms, age 29, of Temple, TX, who was also arrested this morning, was charged today by a federal criminal complaint with possession of methamphetamine with intent to distribute. Helms faces up to 20 years in federal prison upon conviction. A list of the defendants is below.
The indictment alleges that since November 2013, the defendants conspired to distribute various amounts of methamphetamine. During this 10-month-long operation, investigators conducted several controlled methamphetamine purchases. To date, authorities have seized approximately nine pounds of “crystal” methamphetamine, 15 firearms, over $9,000 in U.S. Currency and other assets in connection with this investigation.
“These charges resulted from unprecedented collaboration of federal, state, and local law enforcement targeting a large-scale prison gang involved in violent organized crime over three counties in Central Texas,” said FBI Special Agent in Charge Christopher Combs. “This effort not only exemplifies our commitment to prevent gang violence and criminal activity from poisoning our communities, but it also sends a clear message that we will relentlessly pursue and prosecute the leaders and members of these violent criminal enterprises regardless of where they lay their heads.”
“Operation ‘La Flama Blanca’ has inflicted a debilitating blow to the network of shadow and often violent facilitators of the Aryan Brotherhood of Texas,” said Joseph M. Arabit, Special Agent in Charge of the Drug Enforcement Administration--Houston Field Division. “This operation highlights a deliberate and strategic effort to cut off and shut down the supply of methamphetamine trafficked by the Aryan Brotherhood and the corresponding impact that this horrific drug inflicts on our communities.”
Upon conviction, the defendants face a statutory penalty of between ten years and life imprisonment for distributing more than 500 grams; between five and 40 years imprisonment for distributing between 50 grams and 500 grams; or, up to 20 years imprisonment for distributing less than 50 grams.
These charges and arrests resulted from a joint investigation conducted by the Federal Bureau of Investigation and the Drug Enforcement Administration together with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Temple Police Department, Texas Department of Public Safety, Texas Department of Criminal Justice-Office of Inspector General, McLennan County Sheriff’s Office, Coryell County Sheriff’s Office, Bell County Sheriff’s Office, Gatesville Police Department, Lampasas Police Department, Killeen Police Department and the Austin Police Department. Assistant United States Attorneys Mark Frazier and Stephanie Smith-Burris are prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
ARRESTED TODAY (21)
STATUTORY
NAME AGE RESIDENCE AMOUNT PENALTYROBERT EATON aka “Compound Rob” 39 Kempner, TX > 500 grams 10 years to life
AMANDA PETRIE 34 Temple, TX > 500 grams 10 years to life
SYLVIA O’NEAL 41 Temple > 50 grams 5 to 40 years
DAVID AGUILAR 34 Belton, TX > 50 grams 5 to 40 years
ROBERT MORGAN aka “Hopper” 44 Temple > 500 grams 10 years to life
WAYNE MARTIN HUISINGER 54 Belton > 50 grams 5 to 40 years
LOREN SWANSON 39 Belton > 50 grams 5 to 40 years
ERIC GANOS 39 Temple > 500 grams 10 years to life
DERRICK COOPER aka “Red” 34 Temple > 50 grams 5 to 40 years
KIRT EASTER 48 Belton > 50 grams 5 to 40 years
COLBY WARREN 40 Gatesville, TX > 50 grams 5 to 40 years
NICOLE MARSHALL 34 Gatesville > 50 grams 5 to 40 years
CHRISTOPHER BRECKENRIDGE 39 Gatesville > 50 grams 5 to 40 years
ROBERT BLAKE DOTY 31 Temple < 50 grams up to 20 years
SONYA WHITENBURG 22 Flat, TX > 50 grams 5 to 40 years
FARRON RUSSELL 33 Belton < 50 grams up to 20 years
VICKI KAY LEVY 51 Belton < 50 grams up to 20 years
RONNIE KNEPLER 53 Belton > 50 grams 5 to 40 years
RICKY LEVY 53 Nolanville, TX < 50 grams up to 20 years
MICHELLE JOHNSON 46 Belton < 50 grams up to 20 years
**ROBERT HELMS 29 Temple < 50 grams up to 20 yearsALREADY IN CUSTODY PRIOR TO TODAY (4)
NAME AGE RESIDENCE AMOUNT STAT. PENALTY
HENRY DAVID WALKER aka “Stalker” 52 Temple > 500 grams 10 years to life
JOHN MCLAUGHLIN 33 Temple > 50 grams 5 to 40 years
JAMES MALADY 27 Belton < 50 grams up to 20 years
OSCAR WALKER aka “Country” 29 Temple > 500 grams 10 years to life** Charged by criminal complaint.
"Caught on Video": Two Georgia Men Convicted in Federal Drug Conspiracy TrialRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today thatDaniel Rodriguez, age 26, of Lilburn, Georgia, and Jesus Buruca-Martinez, age 22, of Lawrenceville, Georgia, were found guilty yesterday afternoon in federal court in Greenville, South Carolina, of conspiracy to distribute 500 grams or more of methamphetamine, a violation of Title 21, United States Code, Section 846. Rodriguez was also found guilty of two counts of using a communication device (telephone) to facilitate the commission of a drug felony, a violation of Title 21, United States Code, Section 843(b). United States District Judge J. Michelle Childs presided over the trial and will impose sentence after she has reviewed pre-sentence reports which will be prepared by the U.S. Probation Office.
Evidence presented at trial established that, beginning in early 2012, agents and task force officers with the DEA in Greenville, began investigating an upstate-based methamphetamine distribution network that was being sourced with pounds of methamphetamine from individuals in the Atlanta-area. Ultimately, over a two-year investigation and some seven superseding indictments, twenty-seven defendants were indicted in the conspiracy, with twenty-five entering guilty pleas. The investigation revealed that two members of this conspiracy, Dustin Tiller and Nicanor Perez-Rodriguez, both inmates in the South Carolina Department of Corrections at the time, contacted members of their families on the outside to arrange for methamphetamine to be transported from Georgia into South Carolina for further distribution.
After identifying Daniel Rodriguez as a Georgia-based member of the conspiracy who was making frequent trips to South Carolina to bring methamphetamine as well as collect drug proceeds, members of the Anderson County Sheriff’s Office and Anderson City Police Department were able to establish surveillance on Rodriguez, on Sunday, August 5, 2012, as Rodriguez met with other members of this conspiracy, to include Jesus Buruca-Martinez, in the parking lot of a restaurant, located off of Exit 19, Interstate 85, in Anderson County.
Agents then maintained surveillance on Rodriguez and Buruca-Martinez as they traveled in tandem, both driving separate vehicles, to a residence in Belton, South Carolina. Maintaining surveillance on the Belton residence, agents observed Buruca-Martinez leave the residence, followed by Rodriguez’s departure some twenty minutes later. Traffic stops were conducted on both vehicles and law enforcement seized $20,240 in cash from Buruca-Martinez.
Following the execution of a federal search warrant at the Belton residence and the arrest of Rodriguez, Buruca-Martinez, and others, that evening, agents reviewed a home surveillance system seized in the search. The surveillance system had an operational camera imaging the living room of the residence, attached to a digital video recording (DVR) system. In reviewing the images on the DVR, which dated back some two weeks from the incident date, agents observed Rodriguez arriving at the residence on two previous occasions in July 2012.
Regarding the activity inside the residence on August 5, 2012, a review of the video revealed Rodriguez, Buruca-Martinez, and third co-conspirator, who rode with Rodriguez that day from Georgia, counting, for several minutes, over $20,000 in cash. Witnesses testified that this cash was partial payment applied to the overall drug debt owed to Rodriguez and others for pounds of methamphetamine previously provided on consignment. As the money count concluded, the video showed Buruca-Martinez bundling two cash parcels, placing one in each cargo short pocket, and exiting the residence, ultimately heading south on Interstate 85 before he was stopped by law enforcement.
Nettles stated that Rodriguez and Buruca-Martinez both face a maximum penalty of life in prison and are both subject to a statutory mandatory minimum of ten years in prison.
Nettles stated that the case was investigated and prosecuted by members of the Organized Crime and Drug Enforcement Task Force (OCDETF), a taskforce coordinated by the United States Attorney’s Office. Members of the task force involved in this investigation included the Anderson County Sheriff’s Office, the Anderson City Police Department, the South Carolina Highway Patrol, the Department of Homeland Security, and the Drug Enforcement Administration. Assistant United States Attorneys Andy Moorman and Lance Crick of the Greenville office handled the prosecution.
10 September 2014
Wethersfield Man Charged Federally for Role in Swatting Incidents at Uconn, ElsewhereRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that MATTHEW TOLLIS, 21, of Wethersfield, was arrested today on a federal criminal complaint charging him with participating in a series of “swatting” incidents that occurred earlier this year in Connecticut and other states.
“Swatting” is the making of a hoax call to any emergency service to elicit an emergency response based on the false report of an ongoing critical incident. Incidents typically produce the deployment of SWAT units, bomb squads, and other police units, as well as the evacuations of schools, businesses and residences.
“All of us in law enforcement are committed to exposing the individuals responsible for these swatting incidents and prosecuting them to the full extent of the law,” stated U.S. Attorney Daly. “These events cause emotional distress for victims and waste the valuable time and resources of our law enforcement community. The felony charges announced today, as well as the ongoing investigation here and abroad, make clear that this is not a game.”
“The idea that ‘swatting’ is some kind of modern-day harmless prank is woefully misplaced,” stated FBI Special Agent in Charge Ferrick. “It is a serious federal crime and will be investigated and prosecuted as such. The FBI and the U.S. Attorney’s Office, along with its law enforcement partners, will continue to identify and pursue those responsible for these dangerous hoaxes and not quit until all are held accountable for their criminal actions.”
As alleged in the criminal complaint, TOLLIS was a member of a group primarily consisting of Microsoft X-Box gamers who referred to themselves as “TCOD” (TeAM CrucifiX or Die). The investigation has revealed that TOLLIS and his TCOD associates have used the Internet communication service Skype to make hoax threats involving bombs, hostage taking, firearms, and mass murder. TOLLIS has been identified as a participant in at least six of these swatting incidents, including a bomb threat to the University of Connecticut (UConn), and bomb threats to schools and other locations in New Jersey, Florida, Texas and Massachusetts.
On April 3, 2014, a bomb threat to UConn’s Admissions Department resulted in a multiple hour, campus-wide lockdown and required the UConn Police and the Connecticut State Police’s Bomb Squad, Emergency Services Unit and SWAT teams to respond.
The ongoing investigation has revealed that TCOD members are also responsible for at least six additional swatting incidents in Connecticut and Massachusetts. It is believed that three members of TCOD reside in the United Kingdom and have made swatting calls from the U.K. The FBI is actively working with authorities in the U.K. to identify these individuals.
The criminal complaint charges TOLLIS with one count of conspiring to engage in a bomb threat hoax, one count of aiding and abetting a bomb threat hoax, and one count of aiding and abetting the malicious conveying of false information regarding an attempt or alleged attempt to kill, injure or intimidate any individual, or to unlawfully damage or destroy any building or other real or personal property by means of an explosive. Each of these charges carries a maximum term of imprisonment of five years.
Following his arrest, TOLLIS appeared in Bridgeport federal court and he is currently detained. A detention hearing is scheduled for September 12 at 2:00 p.m.
On September 3, 2014, TOLLIS was arrested on state charges stemming from the UConn swatting incident.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the FBI’s New Haven, Newark and Boston field offices, the UConn Police Department, the Connecticut Intelligence Center, the Willimantic Police Department, the Monroe Police Department, the Harvard University Police Department, the Boston University Police Department, the Newton (Mass.) Police Department, the Cambridge (Mass.) Police Department and other state and local law enforcement agencies.
U.S. Attorney Daly also acknowledged the critical assistance being provided by the U.S. Attorney’s Office for the District of New Jersey.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]