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10 September 2014
Wagner Man Sentenced to 87 Months for Drug OffenseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wagner, South Dakota, man convicted of Conspiracy to Distribute Methamphetamine was sentenced on September 8, 2014, by Judge Karen E. Schreier.
Julian Lee Winckler, age 39, was sentenced to 87 months in custody, three years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Winckler was indicted for Conspiracy to Distribute Methamphetamine by a federal grand jury on December 3, 2013. He pled guilty on June 12, 2014.
In 2013, Winckler was involved in a conspiracy to distribute methamphetamine on the Yankton Sioux Reservation. He sold methamphetamine to a confidential source.
This case was investigated by the Federal Bureau of Investigation, South Dakota Division of Criminal Investigation, Bureau of Indian Affairs, and the Charles Mix County Sheriff’s Office. Special Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Winckler was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.
Virginia Business Owner Pleads Guilty to Failing to Pay Employment TaxesRead the Press Release
<RICHMOND, Va. – Richard A. Long, age 58, of Midlothian, Virginia, pleaded guilty to failing to truthfully account for and pay over employment taxes. He faces up to five years in prison and a $250,000 fine when he is sentenced by United States District Judge John A. Gibney on January 7, 2015.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Ron Cimino, Deputy Assistant Attorney General for Criminal Matters, Tax Division; and Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office, announced the plea.
According to a Statement of Facts filed with the plea agreement, Long acknowledged that he owned, operated, and was the president of Mercedes-Volvo Service Center, a Virginia-based automotive repair business specializing in high-end vehicles. He was the person responsible for collecting, truthfully accounting for, and paying federal income, Social Security, and Medicare taxes for his employees. Long admits that from 2007 through the first quarter of 2013 he paid employees of Mercedes-Volvo Service Center net wages subject to federal taxes totaling $1,334,418.54. Instead of making the required $328,952.21 in estimated tax payments to the IRS with the federal taxes that he had withheld from employees’ paychecks, he kept the funds and failed to pay the IRS the taxes due. Even though Long never paid these federal taxes to the IRS, he annually issued himself and his employees IRS Forms W-2 that reflected the federal tax withholdings.
This case is being investigated by special agents of IRS – Criminal Investigation and is being prosecuted by Special Assistant United States Attorneys Rebecca Perlmutter and Todd Kostyshak, both of whom are trial attorneys with the DOJ Tax Division, and with the assistance of the U.S. Attorney’s Office.
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-117. More information about the Tax Division and its enforcement efforts can be found at www.justice.gov/tax.
Us Attorney Luger Announces Guilty Plea of Plymouth Attorney Who Stole $500,000 from InvestorsRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of TIMOTHY JON OLIVER, 60, for stealing $500,000 from ARS Tectonica, a Mexican construction company, in connection with an alleged real estate project in Libya. OLIVER entered his guilty plea today before Chief Judge Davis in U.S. District Court in Minneapolis.
“Lawyers committing fraud is simply unacceptable,” said Assistant U.S. Attorney David J. MacLaughlin. “Lawyers who commit fraud also conduct professional misconduct which reflects poorly on people who are trained to know better. Lawyers, investment advisors, and other licensed professionals are expected to live up to a higher standard.”
According the defendant’s guilty plea and documents filed in court, from May 2009 to May 2010, he controlled two companies, American Diversified Industries, LLC (ADI), which was used to receive proceeds of the scheme, and GVA International Limited, which was purported to be developing a real estate project in Bani Walid, Libya. OLIVER pressured, and ultimately convinced, ARS Tectonica to send $500,000 to ADI to secure a letter of credit from a Minnesota credit union.
According to his guilty plea, OLIVER told ARS Tectonica that the letter of credit would be presented to the Organization for Development of Administrative Centers (ODAC), an arm of the Libyan government, as a performance bond for the real estate project in Libya. He also told ARS Tectonica that, once ODAC approved the letter of credit, it would be awarded the opportunity to become the construction manager for the Bani Walid project.
According to documents filed in court, on May 21, 2009, ARS Tectonica wired $500,000 to OLIVER, which was received through ADI’s account that was maintained by the defendant. Instead of using the money to secure a letter of credit, OLIVER spent the money on unrelated debts. For almost a year thereafter, OLIVER lulled ARS Tectonica into believing that the $500,000 remained at the credit union and was being utilized by the credit union to secure the letter of credit.
This case was prosecuted by Assistant U.S. Attorney David J. MacLaughlin.
U.S. Attorney Luger thanked the Federal Bureau of Investigation for conducting the investigation.
Defendant Information: TIMOTHY JON OLIVER
Plymouth, MN
Convicted: • Wire Fraud, 1 countU.S. Attorney General Recognizes Three Employees of the U.S. Attorney’s Office for the District of New MexicoRead the Press Release
ALBUQUERQUE – Assistant U.S. Attorneys Tara C. Neda and Timothy S. Vasquez and Director of Administration Ruth M. Cox of the U.S. Attorney’s Office in the District of New Mexico were among the 244 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 today in Washington D.C.
The District of New Mexico 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.”
Ms. Neda received her Director’s Award for her outstanding prosecution of United States v. Armando Gutierrez, Joseph Kupfer and Elizabeth Kupfer, on charges arising out of the theft of $2.5 million in federal Help America Vote Act (HAVA) funds. In fall 2010, Ms. Neda assumed responsibility for the federal prosecution after related state charges met procedural roadblocks and subsequently were dismissed. Ms. Neda obtained an indictment in December 2010 and a superseding indictment in July 2011, shortly before the statute of limitations expired. After the case was bifurcated for trial purposes, she obtained guilty verdicts against the defendants in two trials.
Ms. Cox received the Executive Achievement Award for her 24 years of service to the Justice Department and the District of New Mexico. During her 14 years as the Director of Administration, Ms. Cox has been universally respected for her integrity, dedication, and leadership, as well as her commitment to the professional development and well-being of the United States Attorney’s Office (USAO) staff. Ms. Cox worked her way up to the Director of Administration position from a secretarial position, during which time she completed a college degree in a field that has enhanced her value to the Department and the USAO.
Mr. Vasquez, who recently transferred to the USAO in New Mexico from the District of Nevada, was recognized for the prosecution of Nicholas Bickle and his co-conspirators in that district on charges arising from their illegal possession and sale of military firearms. Bickle, then a Navy SEAL, used his position to smuggle scores of military firearms into the United States when his unit redeployed from Iraq. Those firearms included dozens of AK-47 style machine guns (many bearing markings of Iraq’s armed forces), other machine guns, and multiple semi-automatic pistols which the United States had previously procured for Iraq’s security forces. Bickle and his co-conspirators transported most of those weapons from California to Nevada and Colorado where they sold them to an undercover ATF task force agent posing as an illicit firearms dealer. After his co-defendants pled guilty, Bickle was convicted following a three-week trial and sentenced to 17 years in prison.
U.S. Attorney Damon P. Martinez applauded the Justice Department’s recognition of the work performed by Ms. Neda, Ms. Cox and Mr. Vasquez, and said, “The work for which these three public servants were recognized today embodies the Justice Department’s commitment to do justice, protect our fellow citizens from crime and violence, and to uphold the rule of law while adhering to the highest standards of professionalism. I am proud to count each of them as a colleague and partner.”
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.U.S. Attorney General Recognizes District ProsecutorsRead the Press Release
WASHINGTON – Assistant United States Attorneys Jean M. Hobler and Lee S. Bickley of the U.S. Attorney’s Office in the Eastern District of California were two of 243 members of the Department of Justice nationwide 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 today in Washington D.C.
The Eastern District of California is one of 44 federal districts represented at the ceremony, which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building. The awards recognize outstanding achievements by employees of the U.S. Attorney’s Offices.
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.”
Jean Hobler and Lee Bickley each received the Director’s Award for Superior Performance by an Assistant United States Attorney for their outstanding work in prosecuting Anthony Vassallo’s Ponzi scheme that was one of the largest in the district’s history. Vassallo took in over $80 million of investor funds and lost over $40 million of those funds. They were assigned this case after the departure of the initiating Assistant United States Attorney and the reassignment or retirement of all the original case agents. Nevertheless, Assistant United States Attorneys Hobler and Bickley and new agents prepared for trial in this case involving dozens of feeder investment funds and over 400 individual victims. In May 2012, Bickley successfully moved to have Vassallo’s pretrial release revoked, three years after he was charged, to the great relief of Vassallo’s victims. Hobler led the plea negotiations, which were protracted and complex. Shortly before trial, and four years after he was charged, with his third defense attorney and having fought every suggestion he had committed a crime, on February 1, 2013, Vassallo pleaded guilty. On June 21, 2013, Vassallo was sentenced to 16 years in prison and was later ordered to pay over $43 million in restitution to his victims. Co-conspirator Kenneth Kenitzer pleaded guilty in a related case and on February 14, 2014, was sentenced to six years in prison.
“Prosecuting complex financial crimes has been a priority for this office, and it is a job we have been doing well,” said U.S. Attorney Wagner. “As the Attorney General recognized today, Jean Hobler and Lee Bickley have done outstanding work, both in the prosecution of a huge Ponzi scheme and in their handling of many other cases in this district. Their colleagues in this office are proud of them.”
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.
U.S. Attorney General Recognizes District EmployeesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that Assistant U.S. Attorneys Paul S. Becker and Jess E. Michaelsen were among 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 today in Washington, D.C.
“Both award recipients are tough federal prosecutors and diligent public servants who have served the cause of justice tirelessly,” Dickinson said. “They are representative of so many employees who go above and beyond the call of duty. I’m proud of their accomplishments and applaud them for this well-deserved national recognition.”
The Western District of Missouri 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.”
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.”
Executive Achievement Award
Assistant U.S. Attorney Paul S. Becker is recognized for his contributions over his more-than-25-year career as a federal prosecutor. For more than 20 years, from 1991 until 2013, Becker was the chief of the Organized Crime Strike Force and the Violent Crime Strike Force Unit. In this role, his personal contributions included not only supervising other prosecutors, but also serving as the lead prosecutor in numerous high profile organized crime and violent crime cases. During this time he also creatively managed the district’s gun violence reduction program, which for multiple years led the entire nation in the number of indictments against defendants for illegally possessing firearms. Since he joined the Organized Crime Strike Force in Kansas City in 1987, Becker has served the Department of Justice as a career executive with high ethical standards, personal integrity, and dedication to public service.
Superior Performance as an AUSA
Assistant U.S. Attorney Jess E. Michaelsen is recognized for the successful resolution of a number of high profile and challenging cases. Michaelsen served as lead counsel in United States v. Rodney Anderson, et al., a three-defendant arson case involving the Hereford House, a landmark restaurant in Kansas City. All three defendants received long prison sentences after being convicted at trial. He also served as lead counsel in United States v. Martin Sigillito, et al., which resulted in guilty verdicts following a four-week jury trial in St. Louis, Mo. Sigillito was sentenced to 40 years in prison for leading the $56 million Ponzi scheme. Michaelsen also managed a very complex and wide-ranging fraud caseload including United States v. Deborah Flores, et al., in which he obtained a 40-count indictment against 14 defendants who later pleaded guilty to their roles in an illegal document fraud scheme operating out of a driver’s license office in St. Joseph, Mo.
The Executive Office for U.S. Attorneys 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.Two Honduran Nationals Sentenced to Prison for Their Roles in Tax Refund Fraud ConspiracyRead the Press Release
United States Attorney Kenneth Allen Polite, Jr. and Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department’s Tax Division announced today that two men unlawfully residing in Louisiana were sentenced to prison for identity theft and tax fraud.
ARNULFO SANTOS-MEDRADO, 42, was sentenced to 38 months in prison for conspiracy to defraud the United States by filing false income tax returns and for aggravated identity theft. In addition, MILLER PERDOMO-ACEITUNO, 22, was sentenced to 24 months in prison for his role in the conspiracy to defraud the United States. Each defendant was further ordered to pay $400,000 in restitution and to serve one year of supervised release following their prison terms.
Both defendants have been detained since their arrest, and as Honduran nationals they face possible deportation following the completion of their sentences. They were charged with being part of a multi-jurisdictional conspiracy to file false income tax returns. To date, sixteen defendants have entered guilty pleas to various charges in the case, including JACQUELINE J. ARIAS, a tax return preparer in Spruce Pine, Alabama, who is scheduled to be sentenced on October 22, 2014.
According to the indictments in this case, the conspirators filed false returns listing Individual Taxpayer Identification Numbers (ITINs). An ITIN is a tax processing number issued by the Internal Revenue Service (IRS) to individuals who do not have, and are not eligible to obtain, a social security number. As alleged in the indictments, JACQUELINE J. ARIAS was a Certified Acceptance Agent, meaning that she was entrusted by the IRS with the responsibility of reviewing the documentation of an ITIN applicant’s identity and alien status for authenticity, completeness and accuracy before submitting their application to the IRS. The indictments charged that ARIAS and her coconspirators filed false applications for ITINs, in addition to false income tax returns, and that ARIAS collected preparation fees from the fraudulently-obtained tax refunds. According to the second superseding indictment, the conspirators purchased identification documents from overseas and Forms W-2 from other aliens illegally present in the United States for use in filing false income tax returns with ARIAS.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; IRS-Criminal Investigation; the U.S. Secret Service; the U.S. Postal Inspection Service; and the Social Security Administration, Office of the Inspector General, in partnership with the St. Tammany Parish, La. and Jefferson Parish, La. Sheriffs’ Departments. The case was prosecuted by Hayden Brockett and Kevin Lombardi of the Tax Division and Assistant U.S. Attorney David Haller.
Three Men Charged with Operating Online Website Selling Fake Driver's LicensesRead the Press Release
NEWARK, N.J. – Three New Jersey men were arrested today on charges they allegedly ran an online shop selling fake driver’s licenses, U.S. Attorney Paul J. Fishman announced today.
Ricardo Rosario, 32, and Abraham Corcino, 33, both of Jersey City, and Alexis Scott Carthens, 37, of Newark, are charged by complaint with conspiracy to commit fraud and related activity in connection with authentication features. All three men are expected to make their initial court appearances later today before U.S. Magistrate Steven C. Mannion in Newark federal court.
According to the complaint:
From October 2012 through August 2014, Rosario, Corcino and Carthens allegedly sold fake driver’s licenses over the Internet. The three men ran a website that was available at “fakeidstore.co” and “fakedlstore.com.” A number of the fake driver’s licenses allegedly sold by the defendants were used in connection with “cash out” schemes, where stolen credit card information, usually obtained through hacking or ATM skimming operations, was encoded on to counterfeit credit cards and then used to steal cash from victims’ accounts.
The website sold fake driver’s licenses for the states of New Jersey, Florida, Illinois, Pennsylvania, Rhode Island, and Wisconsin, and boasted that the licenses had “scannable barcodes” and “real” holographic overlays. The price for each fake driver’s license was approximately $150, but the website offered bulk pricing for orders of 10 or more cards. The website allowed its users to pay by bitcoin, a cryptographic-based digital currency, or MoneyPak, a type of prepaid payment card that could be purchased at retail stores. The “FAQ” section of the website indicated that orders would be received one to two days after payment was received and described the website’s policy with respect to returns: “No Refunds. No snitching.”
Rosario allegedly created and ran the Website. Corcino and Carthens allegedly assisted Rosario by creating and mailing the fake driver’s licenses. Corcino also maintained an Instagram website, which was used to promote the website.
Rosario and his conspirators sold 1,514 fake driver’s licenses for $232,660 between or Dec. 30, 2013, and June 23, 2014.
The count of conspiracy to commit fraud and related activity in connection with authentication features carries a maximum potential penalty of 15 years in prison and a fine of twice the gross gain or loss derived from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates in Newark, with the investigation leading to today’s charges.The government is represented by Assistant U.S. Attorneys Andrew S. Pak of the Computer Hacking and Intellectual Property Section and Barbara Ward of the office’s Asset Forfeiture and money laundering unit.
The charges and allegations contained in the complaint are merely accusations and the defendants are considered innocent unless and until proven guilty.
14-317
Rosario, Ricardo et al. Complaint
The Executive Office for Immigration Review to Host Stakeholder Teleconference and Webinar on Recognition and Accreditation ProgramRead the Press Release
SUMMARY - The Executive Office for Immigration Review (EOIR) invites interested parties to participate in a teleconference and Webinar providing a general overview of EOIR's recognition and accreditation program. This event is intended to educate interested parties about the process for obtaining recognition for an organization and accreditation for individuals.
DATE: Friday, September 26, 2014, at 2 p.m.
RSVP: To RSVP for the meeting, please contact Lauren Alder Reid, Counsel for Legislative and Public Affairs, 703-305-0289, [email protected], by noon on Wednesday, September 24, 2014. Please note that there will be no in-person attendance for this event. EOIR will send call-in and Web access information on Wednesday, September 24th, to those who RSVP. To attend the meeting via conference call and Web, please RSVP with the name(s) of the attendee(s), the attendee's organization, and an email address where instructions may be sent for accessing the conference call and Web meeting.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
St. Francis Man Sentenced for Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on September 8, 2014, by U.S. District Judge Roberto A. Lange.
Damien Little Elk, age 36, was sentenced to 37 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Little Elk was indicted for Assault Resulting in Serious Bodily Injury and Assault with a Dangerous Weapon by a federal grand jury on February 12, 2014. He pled guilty to Assault with a Dangerous Weapon on June 17, 2014.
On January 8, 2014, Little Elk was drinking alcohol and arguing with the victim. Little Elk hit and kicked the victim in the abdomen, torso, and legs with shod feet.
This case was investigated by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Little Elk was immediately turned over to the custody of the U.S. Marshals Service.
Sesser Man Sentenced for Conveying False Allegations of A Terrorist Plot to Disrupt Election Day 2012Read the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced that Ray Allen Flener, 26, of Sesser, Illinois, was sentenced on September 10, 2014, on federal charges that he made false statements and conveyed a false threat to federal agents. The United States District Court for the Southern District of Illinois sentenced Flener to 48 months in federal prison, to be followed by two years of supervised release, payment of a special assessment of $200.
At the change of plea hearing in April of 2014, Flener admitted that on November 2, 2012, as a detainee at the Franklin County Jail in Benton, he told a Special Agent of the Federal Bureau of Investigation (FBI) that he had knowledge of a plan by a group called “the New World Order” to disrupt Election Day on November 6, 2012, by using weapons and explosives. Specifically, Flener told and showed the FBI agent the area in which the weapons and explosives allegedly had been stored in August of 2012. Flener’s statements were false because, as Flener knew, he had no such knowledge of weapons and explosives having been stored at that location.
Flener also admitted that on November 1, 2012, he intentionally conveyed false and misleading information, when Flener told law enforcement officers from the Franklin County Sheriff’s Office and the FBI that he had personal knowledge of a plan by a group called “the New World Order” to disrupt Election Day, November 6, 2012, by using weapons and explosives.
The case was investigated by the Federal Bureau of Investigation, the Illinois State Police, the Illinois Department of Corrections, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Sheriff’s Offices of Franklin County, Williamson County, Saline County and Jackson County, and the Police Departments of Marion, West Frankfort and Johnston City. The case was prosecuted by Assistant United States Attorney Liam Coonan.
Sarasota Drug Dealer Convicted of Drug Trafficking and Firearms OffensesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Toborus Dontay Cunningham (33, Sarasota) guilty of possession with intent to distribute over 500 grams of cocaine (Count One) and possession of a firearm in furtherance of his drug trafficking offense (Count Two). Cunningham faces a maximum penalty of 40 years in federal prison for Count One and a mandatory consecutive 5 years’ imprisonment on Count Two. His sentencing hearing has not yet been scheduled. Cunningham was indicted on April 3, 2014.
According to the evidence presented at trial, Cunningham was a supplier to other drug dealers in the Sarasota area. During the course of the investigation, law enforcement officers found over 2000 grams of cocaine in Cunningham’s home, and five firearms and hundreds of rounds of ammunition in his home and office.
This case was investigated by the Drug Enforcement Administration, the Sarasota Police Department, and the Manatee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Natalie Hirt Adams, and James C. Preston.
Rochester Man Pleads Guilty to Wire FraudRead the Press Release
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that David Hoffman, 41, of Rochester, NY, who was convicted of wire fraud, was sentenced to three years probation by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that between June 2008 and September 2008, the defendant operated an auto dealership. Hoffman applied for financing from an automotive financing company, Dealer Services Corporation (DSC) for an inventory of vehicles. After receiving the financing, the defendant then applied for an obtained financing for the exact same vehicles already financed by DSC from another financing company, Automotive Finance Corporation (AFC).
Hoffman received over $166,000 in duplicate financing based on the fraudulent scheme for approximately 13 vehicles.
The sentencing was the culmination of an investigation on the part of the Federal Bureau of Investigation.Protect Our Children ConferenceRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, and Barry R. Grissom, United States Attorney for the District of Kansas, announced that law enforcement officers and victim service providers from throughout a multi-state region are in Kansas City, Mo., this week to attend the 11th annual Protect Our Children Conference at the Airport Hilton in Kansas City, Mo., from Sept. 10 to 12, 2014.
The Protect Our Children provides training for those who are in the trenches combating Internet crimes against children, child exploitation, child sexual assault, and child abduction. Dickinson, Grissom and Kansas City Police Chief Darryl Forte welcomed conference attendees this morning.
The three-day conference, which is hosted by United States Attorneys in Missouri, Kansas, Iowa, Nebraska, Illinois, and Indiana, rotates among cities each year. The event provides a multi-disciplinary approach for law enforcement, medical and mental health and victim service providers. Experts and practitioners present a comprehensive strategy to protect children and seek justice on their behalf.
The overall goal of the 11th Annual Protect Our Children Conference is to increase community awareness, improve investigative and prosecutorial practices, and provide resources to all participants. This year’s conference showcases presenters from across the country specializing in the investigation and prosecution of crimes against children and the treatment of child victims.
A special keynote address will be presented by Christopher Baughman, host of MSNBC’s new series on human trafficking, at 8:30 a.m. Wednesday, 10, 2014.
Prior to Baughman’s retirement, he headed up the Pandering Investigation Team (PIT) and Human Trafficking Task Force for the Las Vegas Police Department, where his team arrested and convicted several of the city’s wealthiest and most violent criminals. He teaches pandering investigations to other departments across the nation, including members of the FBI, IRS, and Federal Parole and Probation Agencies. He is also author of the best-selling true crime human trafficking series, “Off The Street.”
At 10:30 a.m. Friday, Sept. 12, 2014, closing keynote speaker Derek Clark will share his compelling personal testimony of the childhood trauma he endured and overcame, which has inspired thousands of people to overcome their own adversity. A published author and well-known expert in working with troubled children and youth, he will also share insight and training to equip us for dealing with young victims.
Plenary speakers will address such topics as “Trauma and Recovery,” “Neurobiology of Trauma,” and “Cyberbullying.” Sixteen workshops feature separate tracks with experts and topics that are specifically relevant to law enforcement, health care/medical, or victim providers. Special elective workshops will also be offered on a diverse range of topics.
Most of the conference sessions are open to the media. More information about the Protect Our Children Conference can be found online at http://www.pocconference.com.Prior Felon from Roswell Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Jerry J. Barrera, 30, of Roswell, N.M., pleaded guilty this afternoon in federal court in Las Cruces, N.M., to being a felon in possession of a firearm and ammunition.
Barrera is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Barrera was arrested in March 2014, based on a criminal complaint alleging that he unlawfully possessed a firearm and ammunition on Feb. 26, 2014, in Chaves County, N.M. Barrera subsequently was indicted on that same charge on June 18, 2014. Barrera was prohibited from possessing firearms and ammunition in Feb. 2014, because he previously had been convicted of being a felon in possession of a firearm, and possession of methamphetamine with intent to distribute.
Barrera has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Barrera faces a statutory maximum penalty of ten years in prison.
This case was investigated by the Roswell office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Chaves County Metro Narcotics Task Force with assistance from the 5th Judicial District Attorney’s Office. Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Pine Ridge Woman Indicted for LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, woman has been indicted by a federal grand jury for Larceny.
Candace Hill, age 43, was indicted on August 26, 2014. She appeared before U.S. Magistrate Judge Veronica L. Duffy on September 9, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Hill stealing cash and funds belonging to Pinky’s Store in Manderson between September and December 2013.
The charge is merely an accusation and Hill is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Hill was released on bond pending trial. A trial date has been set for November 18, 2014.
Peabody Investment Advisor Sentenced for Defrauding ClientsRead the Press Release
BOSTON – A Peabody investment advisor was sentenced today for defrauding several Boston-area residents out of their retirement savings.
John Michael Babiarz, 40, was sentenced by U.S. District Judge F. Dennis Saylor, IV to four years in prison, restitution of more than $645,000 to his victims, and forfeiture of his house, an automobile, and a brokerage account. In May 2014, Babiarz pleaded guilty to wire fraud and aggravated identity theft.
Following his September 2011 termination from Bishop, Rosen & Co., a retail brokerage firm headquartered in New York, Babiarz falsely told some of his former clients that he had taken a job at Fidelity Investments, the Boston-based asset management firm. Babiarz told other clients that he was working as an independent financial advisor. Babiarz told his clients that he could continue to manage their money if they opened online brokerage accounts at Fidelity, assisted them to open such accounts, and in so doing, set up the user names and passwords for those accounts. Unbeknownst to his clients, Babiarz then caused their funds – or money he borrowed in their names on margin – to be diverted to accounts that he controlled at several other banks and brokerage firms. Babiarz used the money to buy a new home and a car – assets that the Court ordered forfeited today – and to pay other personal expenses.
Babiarz was previously charged in an administrative complaint brought by the Massachusetts Securities Division with engaging in unregistered and fraudulent activities in violation of the Massachusetts Uniform Securities Act and applicable regulations.
United States Attorney Carmen M. Ortiz and Shelly A. Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The case was prosecuted by Assistant United States Attorney Stephen E. Frank of Ortiz’s Economic Crimes Unit.
Opelousas Resident Sentenced for Counterfeit Monetary Instrument SchemeRead the Press Release
LAFAYETTE, La. –An Opelousas man was sentenced last week to 23 months in prison and five years of supervised release for taking part in an international scheme to defraud banks and victims across the country, U.S. Attorney Stephanie A. Finley announced today.
Nelson Durald, 49, of Opelousas, La., was also ordered Thursday by U.S. District Judge Richard T. Haik to pay restitution to identifiable victims and amounts of loss in conjunction with the conviction for one count of conspiracy to commit bank fraud. According to evidence presented at the March 26, 2014, guilty plea, Durald participated in a scheme from the end of 2011 to June 2013 to defraud banks and other financial institutions by cashing and asking other victims to cash fake monetary instruments such as checks and money orders that were shipped to Durald from other countries. Durald and other co-conspirators, some located within the United States and others in foreign countries, worked together to recruit victims to participate in a “Secret Shopper” program. Durald would mail fake monetary instruments to victim participants and ask them to cash the negotiable instruments at their bank or other financial institution as part of a seemingly legitimate Secret Shopper Program. The victim participant was instructed to send a portion of the cash obtained on the counterfeit instrument to another co-conspirator. Victims did this not knowing the monetary instruments they were attempting to cash were fake, which resulted in a loss to the victim participants and banks. At the time of Durald’s arrest, 316 counterfeit monetary instruments had been seized. The total amount of all counterfeit financial instruments was $247,829.15.
The St. Landry Parish Sheriff’s Office and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Myers P. Namie prosecuted the case.
OSHA-Certified Instructor Admits Selling False Construction Safety Certification CardsRead the Press Release
CAMDEN, N.J. – A certified Occupational Safety and Health Administration (OSHA) instructor today admitted selling more than 100 false safety certifications to New Jersey carpenters who never completed the required training, U.S. Attorney Paul J. Fishman announced.
Frederick Prinz, 38, of Marmora, New Jersey, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with making and selling fraudulent construction industry certification forms, known as “OSHA 30” cards.
According to documents filed in this case and statements made in court:The “OSHA 30” training program provides construction workers with foundational knowledge and skills in occupational safety. Prinz was certified by OSHA’s Outreach Training Program (OTP) at the Rocky Mountain Education Center, in Red Rocks, Colorado, to issue workers “OSHA 30” cards after they passed a 30-hour OTP training course. For a fee of $150 to $250 per card, Prinz sold false “OSHA 30” certifications to carpenters who never completed the required training.
The violation charged carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Dec. 10, 2014.U.S. Attorney Fishman credited special agents of the Department of Labor-Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia, with the investigation leading to today’s guilty plea.
The government is represented by V. Grady O’Malley, Senior Litigation Counsel of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
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Defense counsel: William J. Hughes Esq., Atlantic City, New Jersey
Prinz, Frederick Information
Monroe County Man Charged with Heroin TraffickingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a criminal Information was filed today charging a Monroe County resident with distributing heroin during a nine-month time period.
According to United States Attorney Peter Smith, the Information alleges that Kyle Westry, age 21, of Tobyhanna, Pennsylvania, distributed and possessed with intent to distribute heroin between November 21, 2013 and August 14, 2014.
The charge stems from an investigation by special agents of the Drug Enforcement Administration, the Pennsylvania State Police, and the Monroe County Drug Task Force.
Westry faces a potential maximum sentence of 20 years in prison and a $1 million fine if he is convicted of the charge.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
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.
Mexican National Charged Will Illegally Entering the U.S.Read the Press Release
An indictment was filed charging Raul Zarazua-Rubio, 46, of Mexico, with unlawful reentry into the United States on September 1, 2014, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations, Strongsville, Ohio. The case is being handled by Assistant United States Attorney Noah P. Hood.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
McLaughlin Man Sentenced for Felon in Possession of AmmunitionRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man convicted of Felon in Possession of Ammunition was sentenced on September 8, 2014, by U.S. District Judge Roberto A. Lange.
Byron Hawk Bear, Sr., age 38, was sentenced to 60 months in custody with credit for 178 days served, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. The Court also ordered forfeiture of an Astra .357 caliber revolver and ammunition.
Hawk Bear was indicted by a federal grand jury on March 11, 2014. He pled guilty to the Indictment on June 16, 2014.
The conviction arose from a January 16, 2014, incident in Mobridge when police officers responded to a call to assist a Department of Social Services worker gain entry to an apartment. The apartment manager opened the door and the police officers found Hawk Bear, a convicted felon, hiding in a bedroom closet inside the apartment. They also found a red duffel bag that contained a .357 caliber revolver and .357 caliber shells. Additional shells were found in a pocket of Hawk Bear’s pants.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mobridge Police Department. Assistant U.S. Attorney Jay Miller prosecuted the case.
Hawk Bear was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.
Manchester Man Sentenced for Methamphetamine ManufacturingRead the Press Release
CONCORD, NEW HAMPSHIRE – CONCORD, N.H. – Robert Pineault, 39, of Manchester, was sentenced in United States District Court for the District of New Hampshire to 60 months in prison in connection with offenses involving methamphetamine manufacture, announced United States Attorney John P. Kacavas.
Pineault was indicted by a Federal Grand Jury in October 2013 and plead guilty on June 2, 2014, to manufacturing methamphetamine, conspiring with others to do so, and possessing materials used in connection with manufacturing the drug. The indictment charged that these activities occurred between November 2012 and March 2013 in Manchester. Pineault was arrested on March 5, 2013 during the execution of a search warrant at 16 Walnut Street in Manchester.
The investigation was conducted by the Drug Enforcement Administration and the Manchester Police and was prosecuted by Assistant U.S. Attorney Robert J. Veiga.
Man Charged with Operating $3 Million Fraud SchemeRead 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, today announced that DAVID C. JACKSON, also known as “C. David Manns,” 53, has been arrested on a federal criminal complaint charging him with operating an advance fee fraud scheme that defrauded individuals out of more than $3 million. JACKSON was arrested in Maryland on August 26, 2014.
According to the criminal complaint, JACKSON was convicted of federal bank fraud and money laundering charges in October 2006 and was sentenced to 41 months of imprisonment, followed by five years of supervised release. He was released from federal prison in September 2009.
The complaint alleges that, in approximately September 2009, JACKSON, using the alias “C. David Manns,” established Jalin Realty Capital Advisors, LLC, using a business address in Dayton, Ohio. In 2011, JACKSON changed the name of his business to American Capital Holdings, LLC, using business addresses in Pittsburgh, Pennsylvania. Soon after changing the business name, JACKSON began introducing himself to victim clients as “Charles Jackson.”
The complaint alleges that JACKSON defrauded individuals, including Connecticut residents, who wired him funds in anticipation of receiving a large business loan. The upfront fees were alternately described as “application fees,” “collateral fees” and “commitment fees.” JACKSON promised the individuals a refund of the upfront fees each had provided if the loan transaction was not completed.
Through this alleged scheme, more than 20 individuals provided JACKSON with a total of more than $3 million in advance fees for business loans that were never provided. A few individuals received a partial refund of advance fees they had provided, but the refunds were made using fees that had been paid by other victims.
JACKSON, who has r esided in Maryland, Ohio and Pennsylvania, has been detained since his arrest.
The criminal complaint charges JACKSON with wire fraud, an offense that carries a maximum term of imprisonment of 20 years, and conspiracy, which carries a maximum term of imprisonment of five years.
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 Federal Bureau of Investigation and the Ansonia Police Department, and is being prosecuted by Assistant U.S. Attorneys Anthony Kaplan and Michael McGarry.
Citizens with information that may be helpful to this ongoing investigation are encouraged to contact the FBI at (203) 777-6311.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Luzerne County Woman Sentenced to Prison for Transporting A Person in Interstate Commerce to Engage in ProstitutionRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Bear Creek woman was sentenced by U.S. District Court Judge Robert D. Mariani to 16 months in federal prison today for her role in helping to transport a female from Pennsylvania to New Jersey to engage in prostitution.
According to United States Attorney Peter Smith, the defendant, Kyoni Humphrey a/k/a “Kyoni Nieves,” age 25, previously pleaded guilty to helping a co-defendant, Travis Humphrey, commit the crime by renting and driving a vehicle used to transport the female to motels in Pennsylvania and New Jersey to engage in prostitution, renting motel rooms, and posting “escort” advertisements and photographs on a website during May 2013.
Humphrey was indicted by a federal grand jury in January 2014, as a result of an investigation by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Pennsylvania State Police, and the Luzerne County District Attorney’s Office.
Co-defendant Travis Humphrey previously pleaded guilty to sex trafficking of a minor and is awaiting sentencing.
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."
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Louisiana Man Admits Abusive Sexual Contact of Sleeping Woman on Domestic Flight to New JerseyRead the Press Release
NEWARK, N.J. - A Louisiana man today admitted sexually touching a sleeping woman who did not know him aboard a flight from Houston to Newark Liberty International Airport, U.S. Attorney Paul J. Fishman announced.
Devender Singh, 62, an Indian national who lives in Baton Rouge, Louisiana, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with abusive sexual contact.
According to the documents filed in this case and statements made in court:
Singh was seated next to a woman who occupied a window seat on a United Airlines flight from Houston to Newark. While the plane was in the air, the woman fell asleep. She awoke to find Singh kissing her face with his hand inside her shirt.
After pushing Singh off of her and telling him to get away, the woman went to the back of the plane and told a flight crew member what had happened, asking that the police be present when the plane landed.
The federal government has exclusive jurisdiction over all sexual abuse cases that occur on aircraft in flight in the United States.
The charge to which Singh pleaded guilty carries a maximum potential penalty of two years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 23, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and the Port Authority Police Department, under the direction of Superintendent Michael A. Fedorko, with the investigation leading to today’s plea.
The government is represented by J. Jamari Buxton of the U.S. Attorney’s Office Criminal Division in Newark.
14-320Defense counsel: Assistant Federal Public Defender Candace Hom Esq., Newark
Singh, Devender Information
Lincoln County Grandfather and Grandson Sentenced to Prison for Oxycodone DistributionRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced today that Wallace Adkins, 82, and his grandson, Timothy Harvey, 30, were sentenced to federal prison terms for their roles in the distribution of oxycodone in Lincoln County, West Virginia. Adkins was sentenced to one year and one day in prison and Harvey was sentenced to three years and five months in prison. The two family members had previously plead guilty to aiding and abetting the distribution of oxycodone.
During their May 27, 2014, guilty plea hearing, Adkins and Harvey admitted that on March 26, 2013, a confidential informant (CI) working with law enforcement came to Adkins’ home in West Hamlin to buy oxycodone. The CI gave Adkins $200.00. Harvey then reached into Adkins’ shirt pocket, retrieved a bottle of pills, and gave the CI five oxycodone. The men told the Court that they had been distributing oxycodone from Adkins’ home for over a year.
The sentences were imposed by United States District Court Judge John T. Copenhaver Jr.
The case was investigated by the Huntington Violent Crime and Drug Task Force and the West Virginia State Police. Assistant United States Attorney Monica D. Coleman handled the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
Lebanon Man Sentenced to 25 Years in Prison for Enticing A Child to Engage in Sexual Activity and for Distribution of Child PornographyRead the Press Release
The United States Attorney's Office for the Middle District Pennsylvania announced the sentence of a Lebanon man for child pornography related offenses. Senior United States District Court Judge Sylvia H. Rambo imposed a 25 year sentence on Howard D. Davis, age 58, of Lebanon, for attempted enticement of minor to engage in sexual activity and for distribution of child pornography.
According to United States Attorney Peter Smith, Davis was released from state prison in August 2012 after serving three years for soliciting minors over the internet to engage in sexual activity. Within a few months of his release from prison, Davis began to solicit underage girls via internet chat rooms to create sex videos.
Two separate undercover investigations caught Davis trolling these websites. A Nebraska State Patrol officer – posing at a 14 year-old girl – was enticed by Davis to create sex videos and images and send these to Davis’ residence in Lebanon, Pennsylvania. Thereafter, Davis mailed a web camera and sex toys to the undercover officer. A second undercover investigation conducted by the Dickson Police Department, in Dickson, North Dakota, also caught Davis engaging in the same activity on a different website.
Local and federal law enforcement in Nebraska coordinated with the United States Postal Inspectors and the Pennsylvania Office of Attorney General to complete the investigation. In February 2013, a search warrant was executed at Davis’s residence where he was chatting with an unidentified underage girl from overseas. Police recovered a box of web cameras and box of sex toys, all similar to those shipped by Davis to the Nebraska State police. Police also searched his computer and found child pornography, which Davis admitted he would swap with others over the internet.
In October 2013, Davis entered a guilty plea in U.S. District Court in Harrisburg to enticing a fourteen year old to engage in sexually explicit activity and distribution of child pornography.
The case was investigated by the United States Postal Inspectors in conjunction with the Pennsylvania Office of Attorney General and Nebraska State Patrol. The case was prosecuted by Assistant United States Attorney Michael A. Consiglio.
Law Enforcement, Victim Service Providersgather in Kc for Annual EventRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, and Barry R. Grissom, United States Attorney for the District of Kansas, announced that law enforcement officers and victim service providers from throughout a multi-state region are in Kansas City, Mo., this week to attend the 11th annual Protect Our Children Conference at the Airport Hilton in Kansas City, Mo., from Sept. 10 to 12, 2014.
The Protect Our Children provides training for those who are in the trenches combating Internet crimes against children, child exploitation, child sexual assault, and child abduction. Dickinson, Grissom and Kansas City Police Chief Darryl Forte welcomed conference attendees this morning.
The three-day conference, which is hosted by United States Attorneys in Missouri, Kansas, Iowa, Nebraska, Illinois, and Indiana, rotates among cities each year. The event provides a multi-disciplinary approach for law enforcement, medical and mental health and victim service providers. Experts and practitioners present a comprehensive strategy to protect children and seek justice on their behalf.
The overall goal of the 11th Annual Protect Our Children Conference is to increase community awareness, improve investigative and prosecutorial practices, and provide resources to all participants. This year’s conference showcases presenters from across the country specializing in the investigation and prosecution of crimes against children and the treatment of child victims.
A special keynote address will be presented by Christopher Baughman, host of MSNBC’s new series on human trafficking, at 8:30 a.m. Wednesday, 10, 2014.
Prior to Baughman’s retirement, he headed up the Pandering Investigation Team (PIT) and Human Trafficking Task Force for the Las Vegas Police Department, where his team arrested and convicted several of the city’s wealthiest and most violent criminals. He teaches pandering investigations to other departments across the nation, including members of the FBI, IRS, and Federal Parole and Probation Agencies. He is also author of the best-selling true crime human trafficking series, “Off The Street.”
At 10:30 a.m. Friday, Sept. 12, 2014, closing keynote speaker Derek Clark will share his compelling personal testimony of the childhood trauma he endured and overcame, which has inspired thousands of people to overcome their own adversity. A published author and well-known expert in working with troubled children and youth, he will also share insight and training to equip us for dealing with young victims.
Plenary speakers will address such topics as “Trauma and Recovery,” “Neurobiology of Trauma,” and “Cyberbullying.” Sixteen workshops feature separate tracks with experts and topics that are specifically relevant to law enforcement, health care/medical, or victim providers. Special elective workshops will also be offered on a diverse range of topics.
Most of the conference sessions are open to the media. More information about the Protect Our Children Conference can be found online at http://www.pocconference.com.
Large-Scale Law Enforcement Effort Targets Downtown Los Angeles Businesses Linked to Money Laundering for Drug CartelsRead the Press Release
Fashion District Store Using ‘Black Market Peso Exchange’ Scheme Allegedly Took Ransom Money for Hostage Being Held and Tortured by Sinaloa Drug Cartel
LOS ANGELES – Approximately 1,000 law enforcement officials this morning fanned out across the Fashion District in downtown Los Angeles to execute dozens of search warrants and arrest warrants linked to businesses suspected of using “Black Market Peso Exchange” schemes to launder narcotics proceeds for international drug cartels.
Authorities today arrested nine defendants and seized what is estimated to be at least $65 million in cash and from bank accounts around the world in relation to asset forfeiture actions filed as part of the ongoing investigations.
One case unsealed today alleges that the Sinaloa Drug Cartel used a Fashion District business to accept and launder ransom payments to secure the release of a United States citizen who was kidnapped by that narcotics organization, held hostage, and tortured at a ranch in Mexico.
Two other indictments also unsealed today involve alleged money laundering by other Fashion District stores using the Black Market Peso Exchange (BMPE) scheme.
In a BMPE scheme, a peso broker works with an individual engaged in illegal activity, such as a drug trafficker, who has currency in the United States that he needs to bring to a foreign country, such as Mexico, and convert into pesos. The peso broker finds business owners in the foreign country who buy goods from vendors in the United States and who need dollars to pay for those goods. The peso broker arranges for the illegally obtained dollars to be delivered to the United States-based vendors, such as the stores in the Fashion District, and these illegally obtained dollars are used to pay for the goods purchased by the foreign customers. Once the goods are shipped to the foreign country and sold by the foreign-based business owner in exchange for pesos, the pesos are turned over to the peso broker, who then pays the drug trafficker in the local currency of the foreign country, thus completing the laundering of the illegally obtained dollars.
This BMPE scheme – which is also known as Trade-Based Money Laundering – is often used by Mexico-based drug trafficking organizations to collect money from their drug sales in the United States without having to take the risk of smuggling bulk amounts of U.S. currency across the Mexican border and without having to convert and wire the U.S. currency through established financial institutions, which not only carries transaction fees, but also a threat their illegal activity will be detected.
“We have targeted money laundering activities in the Fashion District based on a wealth of information that numerous businesses there are engaged in Black Market Peso Exchange schemes,” said Robert E. Dugdale, the Assistant United States Attorney who oversees the Criminal Division in the Central District of California. “Los Angeles has become the epicenter of narco-dollar money laundering with couriers regularly bringing duffel bags and suitcases full of cash to many businesses. Because Los Angeles is at the forefront of this money laundering activity, law enforcement in Los Angeles is now at the forefront of combatting this issue.”
In the criminal case related to the laundering of ransom money to the Sinaloa Cartel, three people were arrested today for their roles in a BMPE scheme based at a Fashion District wholesaler named QT Fashion, Inc., (which did business under the names QT Maternity and Andres Fashion). The indictment in this case also alleges that a Sinaloa, Mexico-based business, Maria Ferre S.A. de C.V., was involved in the scheme to launder ransom money. Following the kidnapping of a United States Citizen by the Sinaloa Drug Cartel, QT Fashion allegedly accepted bulk cash and funneled the money through 17 other Fashion District businesses at the direction of Maria Ferre.
The indictment alleges that the Sinaloa Drug Cartel ordered the kidnapping of the victim after authorities in the United States seized more than 100 kilograms of cocaine that he was responsible for distributing. The victim was held at a ranch in Culiacan, Sinaloa, where he was beaten, shot, electrocuted and waterboarded. The hostage was released after relatives paid $140,000 in ransom, and he is currently in the United States.
“Today’s arrests and searches should send a message to international drug cartels that the FBI and our partners won’t tolerate the exploitation of American businesses for the purposes of illicit financial transactions that fund hostage-taking and the distribution of narcotics,” said Bill L. Lewis, the Assistant Director in Charge of the FBI's Los Angeles Division. “In addition, today’s actions should send a warning to American businesses who turn a blind eye to the crime they facilitate, while avoiding reporting requirements, transaction fees and law enforcement scrutiny.”
Three defendants related to QT Fashion were arrested this morning – Andrew Jong Hack Park (aka Andres Park), 56, of La Canada-Flintridge; Sang Jun Park, 36, of La Crescenta; and Jose Isabel Gomez Arreoloa (aka Chabelo), 49, of downtown Los Angeles.
Three defendants linked to Maria Ferre are wanted by authorities. They are Luis Ignacio Orozco Munoz (aka Nacho), 50, of Culiacan, Sinaloa; Armando Arturo Chavez Gamboa, 43, of Culiacan, Sinaloa; and Daisy Corrales Estrada, 30, of Culiacan, Sinaloa.
The six individual defendants were charged in a three-count indictment returned under seal by a federal grand jury on June 19. The indictment, which was unsealed this morning, accuses the defendants of conspiracy to launder money, conspiracy to operate an unlicensed money transmitting business, and operating an unlicensed money transmitting business. If they are convicted of the charges in the indictment, each defendant would face a statutory maximum penalty of 30 years in federal prison.
The investigation into the money laundering scheme related to the kidnapping was conducted by the FBI, IRS – Criminal Investigation and the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Angela Scott (213-894-6683).
“Today’s Fashion District takedown sends a clear message that law enforcement will not tolerate the actions of those who use the cover of legitimate business to conceal bulk cash obtained directly from drug trafficking and associated acts of violence,” said DEA Associate Special Agent in Charge Stephen G. Azzam. “These indictments and arrests deal a massive blow to complex trade-based money laundering schemes in general, and will therefore severely impair the ability of drug cartels to realize profits and further entrench themselves in our nation’s socioeconomic fabric.”
In the second case announced today, three members of a Temple City family – Xilin Chen, 55; Chuang Feng Chen (aka “Tom”), 24, who is Xilin Chen’s son; and Aixia Chen, 28, who is Xilin Chen’s daughter – have been charged with conspiring to launder monetary instruments, money laundering, and various immigration offenses for their roles in running various businesses in the Fashion District that were used in BMPE schemes. During this morning’s operation, Xilin Chen and Chuang Chen were arrested. Aixia Chen is a fugitive currently being sought by authorities.
The indictment related to the Chens’ businesses – Yili Underwear and Gayima Underwear – alleges that they received bulk cash from a narcotics trafficker in Los Angeles and from an undercover agent posing as a drug trafficker. The Chens allegedly laundered the money to drug trafficking organizations outside of the United States through use of the BMPE scheme, and “structured” the deposits of the bulk cash they received at their businesses to avoid currency reporting requirements that would have alerted law enforcement to their criminal conduct.
IRS - Criminal Investigation’s Special Agent in Charge Erick Martinez said, “Through our collective efforts, we are gaining access to more and more information on the abusive practices of individuals and businesses involved in the laundering and structuring of drug proceeds through the Los Angeles Fashion District, and you can expect us to use all of our enforcement tools to stop this abuse. IRS - Criminal Investigation is working hard to ensure criminals do not use the United States financial system to legitimize their illegal profits.”
If they are convicted, Xilin Chen would face a statutory maximum sentence of 100 years in federal prison, Chuang Chen would face up to 40 years, and Aixia Chen could be sentenced to as much as 80 years.
The case naming the Chens was investigated by the Drug Enforcement Administration and IRS – Criminal Investigation under the auspices of the Southwest Border Initiative. The case is being prosecuted by Assistant United States Attorney John Kucera (213-894-3391) and Assistant United States Attorney Vicki Chou (213-894-8692).
In the third case announced today, a business in the Fashion District named Pacific Eurotex, Corp. and four individuals connected to that business have been charged with conspiracy to launder money, conspiring to illegally structure currency transactions to avoid a currency transaction reporting requirement, structuring currency transactions to avoid currency transaction reporting requirements, and failing to file reports of currency transactions over $10,000. This Indictment alleges that the defendants utilized Pacific Eurotex as a repository to receive bulk cash that they knew or believed consisted of drug money, that they later laundered those drug proceeds to foreign countries through a trade-based money laundering scheme; that they failed to report the receipt of this bulk cash, as required; and that they structured deposits of this bulk cash into bank accounts by making frequent deposits of the cash in amounts less than $10,000 to avoid a bank reporting requirement that would have drawn the scrutiny of law enforcement to their actions.
“These arrests and seizures should serve as a sobering warning to companies that seek to bolster their bottom line by doing business with drug traffickers – you will pay a high price for your complicity,” said Claude Arnold, special agent in charge for Homeland Security Investigations in Los Angeles. “Unscrupulous companies that help cartels cover their financial tracks by laundering their illicit funds are contributing to the devastation wrought by the international drug trade.”
The four individual defendants named in the Pacific Eurotex indictment were arrested this morning. Those taken into custody are: Hersel Neman, 55 of Beverly Hills, the chief financial officer of Pacific Eurotex; Morad Neman, 54, of the Westwood District of Los Angeles, the chief executive officer of Pacific Eurotex and brother of Hersel Neman; Mehran Khalili, 45, of Beverly Hills, who is a brother in law of the Nemans; and Alma Villalobos, 52, of Arleta.
This indictment alleges that Pacific Eurotex received, laundered and structured approximately $370,000 in bulk cash delivered on four separate occasions by an undercover agent posing as a money courier. The indictment alleges that defendants laundered the money after being specifically advised by Homeland Security Investigations agents that bulk cash payments were frequently derived from illegal activity and that they were required to report cash transactions involving more than $10,000 in currency. According to the indictment, the defendants laundered money, despite the fact that, on one occasion, some of the bulk currency appeared to be spattered with blood.
California Attorney General Kamala D. Harris stated: “Transnational gangs are the number one threat to California's public safety. These predatory criminal organizations destabilize our communities with drugs, guns and human trafficking. Today marks a major victory in our ongoing fight to keep California safe from these predators.”
The investigation into Pacific Eurotex was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and IRS - Criminal Investigation. Substantial assistance was provided by the Los Angeles Interagency Metropolitan Police Apprehension Task Force (LA IMPACT); the Los Angeles, Long Beach, Gardena, Torrance, El Segundo, and Monterey Park police departments; along with the Westside High Tech Task Force. This case is being prosecuted by Assistant United States Attorney Julie Shemitz (213-894-5735).
The defendants arrested today are scheduled to be arraigned this afternoon in United States District Court.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
Release No. 14-117
Lancaster Man Indicted on Gun and Drug ChargesRead the Press Release
Marlon Paul White, 35, of Lancaster, PA, is charged in a seven-count indictment with drug and gun offenses, announced United States Attorney Zane David Memeger. Specifically, White is charged with possession with intent to distribute 34.8 grams of cocaine base (“crack”) and cocaine, possession of a firearm and a machinegun in furtherance of a drug trafficking crime, possession of a machinegun, two counts of possession of an unregistered firearm, and possession of a firearm by a convicted felon. According to the indictment, the machinegun was fully loaded and stored with a silencer.
If convicted of all charges, the defendant faces a statutory maximum sentence of life in prison, including a total mandatory minimum sentence of 45 years in prison, and eight years up to a lifetime of supervised release.
This case was investigated by the Lancaster Bureau of Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Special Assistant United States Attorney Christopher J. Lechner.
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, 215-861-8525Lackawanna Man Charged with Possesion of Child PornographyRead the Press Release
Buffalo, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that James M. Meyers, 28, of Lackawanna, NY, has been arrested and charged by criminal complaint with possession of child pornography. The charge carries a maximum penalty of 20 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that according to the complaint, on June 24, 2014, the Wyoming County Sheriff’s Department responded to a complaint in the Town of Pike. At that time, deputies were given an SD card which contained what appeared to be images of child pornography. Subsequent investigation determined that the SD card belonged to the defendant. A forensic analysis determined the images were in fact child pornography. Some of the images contained graphic images of prepubescent children.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The criminal complaint is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, and the Wyoming County Sheriff’s Department, under the direction of Sheriff Gregory Rudolph.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Justice Department Sues to Shut Down Mississippi Tax Return PreparerRead the Press Release
The United States has requested that the U.S. District Court for the Northern District of Mississippi permanently bar a Greenville, Mississippi, man from preparing federal income tax returns for others, the Justice Department announced today.
According to the complaint, Nathaniel Kimble has prepared tax returns under the business name Kimble Tax Services in Greenville from 2010 through the present. The complaint alleges that Kimble learned how to prepare tax returns by working with Alice Mobley. Mobley, who was sentenced to serve 75 months in prison after pleading guilty to three charges related to her tax return practices in Alabama, admitted in her criminal case that she conspired with employees of Kimble Tax Services to file tax returns she knew were fraudulent. In this regard, the complaint alleges that Kimble knowingly prepared federal income tax returns for customers that understated the customers’ tax liability and overstated the refunds they claimed by inflating or fabricating Earned Income Tax Credits that his customers were not eligible to take.
In the past decade, the department’s Tax Division has obtained more than 500 injunctions to stop tax fraud promoters and tax return preparers. Information about these cases is available on the Justice Department website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Related Materials:
United States v. Nathaniel Kimble, etc. et al
ComplaintJury Convicts KC Men of $20 Million Drug-trafficking Conspiracy, Murder-for-hire SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Kansas City, Mo., men were convicted by a trial jury today of their roles in a multi-million dollar drug-trafficking conspiracy and an unsuccessful murder-for-hire conspiracy.
Andre Taylor, also known as “Dre,” 48, of Kansas City, was found guilty of four counts contained in a Feb. 25, 2014, federal indictment. Victor Vickers, also known as “VV,” 29, of Kansas City, was found guilty of a lesser included offense in the drug-trafficking conspiracy.
Taylor was found guilty of participating in a conspiracy to distribute large quantities of marijuana and cocaine between Feb. 1, 2010, and Feb. 25, 2014. Vickers was found guilty of participating in a conspiracy to distribute less than 100 kilograms of marijuana. Taylor was also convicted of participating in a conspiracy to commit murder-for-hire, aiding and abetting the distribution of cocaine and possessing a machine gun in furtherance of a crime of violence (the murder-for-hire conspiracy).
Evidence introduced during the trial indicated that Taylor was the head of a major cocaine and marijuana distribution organization in the metropolitan area. A Mexico-based cartel supplied narcotics to the drug-trafficking organization and Taylor sometimes traveled to Mexico to buy drugs for resale within the Kansas City area. Taylor boasted that he personally sent $20 million back to Mexico. Numerous shipments of cocaine, totaling more than 100 kilograms, were transported to Kansas City from Mexico.
Taylor’s relatives and others assisted him in recruiting buyers and arranging sales. His base of operation was in the 2300 block of Hardesty in Kansas City, Mo., where his family owned three houses next door to each other. Confidential informants participated in numerous controlled buys of narcotics. Many of those buys took place in, around, or outside of the three Taylor houses.
In intercepted telephone conversations, Taylor boasted of spending millions of dollars to buy drugs to sell in the Kansas City area. Based on telephone interceptions, a murder-for-hire plot was discovered during the conspiracy. The intended victim was a co-conspirator and former trusted associate of Taylor’s.
In addition to Taylor and Vickers, 17 co-defendants have pleaded guilty to charges contained in the federal indictment.
Drug-Trafficking Conspiracy
A confidential source completed a series of controlled purchases of cocaine from Taylor and his co-conspirators in 2011 and 2012.
On Sept. 27, 2012, search warrants were executed at the three homes owned by the Taylor family at 23rd and Hardesty. Approximately 227 pounds of marijuana was seized, as well as an assault rifle and body-armor-piercing bullets. In addition, on Nov. 30, 2012, more than 1,000 pounds of marijuana, which was intended for delivery to Taylor, was recovered from a truck and trailer being driven by a co-conspirator. This co-conspirator told investigators that he had delivered marijuana to Kansas City to Taylor seven or eight times, and he had transported $500,000 to $700,000 to Arizona for these drug shipments.
FBI agents conservatively estimate that Taylor was responsible for distributing at least 120 kilograms of cocaine and at least 2,000 pounds of marijuana, either himself or through one of his many confederates.
Murder for Hire Conspiracy
The intended victim of the murder-for-hire conspiracy was co-defendant William E. Brown, also known as “Billy,” 43, of Kansas City. Taylor believed that Brown, a one-time trusted associate, stole $500,000 and more than 13 kilograms of cocaine from Taylor’s downtown loft apartment. (Taylor also maintained a residence at a luxury apartment on the County Club Plaza.) Taylor sought to hire a “hit man” to do the job and contacted co-defendant Kenneth Vaughn Cooper, 31, of Kansas City.
Brown pleaded guilty to his role in the drug-trafficking conspiracy and admitted that he purchased at least five kilograms of cocaine from Taylor. Cooper pleaded guilty to his role in the murder-for-hire conspiracy and admitted that he was supposed to be paid a share of the stolen $500,000 for committing the murder.
On Aug. 18, 2012, FBI agents intercepted a telephone call in which Taylor said, “it’s necessary to kill him,” referring to Brown.
On Aug. 21, 2012, agents intercepted a phone call between Cooper and Taylor. Taylor said he had a “hammer” at “23rd and Hardesty” and Cooper said he was going to come and get it. Later that day, Jackson County Sheriff’s deputies arrested Cooper on outstanding warrants while he was a passenger in a truck driven by his father. As deputies approached the vehicle they could smell burnt marijuana coming from inside. When the vehicle was searched, deputies recovered a firearms case behind the driver’s seat that contained a machine gun – a MAC-10 style homemade .45-caliber firearm with no serial number – and a metal stick magazine with 18 live rounds of .45-caliber ammunition.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about 10 hours over two days before returning the guilty verdicts to U.S. District Judge Gary A. Fenner, ending a trial that began Monday, Sept. 2, 2014.
Under federal statutes, Taylor and Vickers are each subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Stefan C. Hughes and Cindi Woolery. It was investigated by the FBI, the Drug Enforcement Administration, IRS-Criminal Investigation, the Jackson County Drug Task Force, the Lee’s Summit, Mo., Police Department, and the Kansas City, Mo., Police Department.Jerseyville Man Convicted of Attempted Sex Offenses with A MinorRead the Press Release
Follow @SDILNewsTimothy S. Griesemer, 40, of Jerseyville, Illinois was convicted today in the United States District Court of Attempted Sex Trafficking of a Minor and Attempted Enticement of a Minor, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. The guilty verdicts were returned this morning in federal court following a three-day jury trial. “I am gratified that a jury perceived this person to be just what he is – someone who had every intention of molesting a child.” said United States Attorney Wigginton.
Evidence presented at trial established that in October 2013, Griesemer sent several text messages to a female acquaintance indicating that he had a desire to obtain a minor child for the purposes of engaging in sexual acts with the child. The acquaintance called the Jerseyville Police Department to report the substance of the text messages. The Jerseyville Police Department enlisted the assistance of agents from the Illinois State Police and the United States Secret Service who initiated an investigation. On October 10, 2013, Griesemer exchanged over 95 text messages with undercover agents during which Griesemer repeatedly stated his desire to pay money to engage in sexual acts with an eight year old female. During the text conversation, Griesemer agreed to meet at an apartment in Jerseyville for what he believed would be a meeting with the young child to engage in sexual acts. Griesemer arrived at the apartment, confirmed his intentions, and was arrested by law enforcement. During a search of Griesemer’s person, agents located a condom, two bottles of personal lubricant, a sexual device, and $311 in cash.
Griesemer is facing a minimum term in prison of fifteen (15) years up to life and a fine up to $250,000 for the Attempted Sex Trafficking of a Minor and a term in prison of not less than ten (10) years up to life and a fine up to $250,000 for the Attempted Enticement of a Minor. Griesemer will also be subject to a term of supervised release of not less than five (5) years up to life after his term of imprisonment. Griesemer will remain in custody pending sentencing, which is scheduled on December 12, 2014 before United States District Judge Michael J. Reagan.
“I cannot thank the brave citizen who reported this gruesome request and the men and women of law enforcement enough for their concern and swift investigation which led to the capture of someone intent on molesting a child. The concerted action of these people most certainly saved an innocent child from what would have been nothing less than a sentence in hell.” United States Attorney Wigginton noted.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The investigation was conducted by the Illinois State Police, the United States Secret Service, and the Jerseyville Police Department. The case was tried by Assistant United States Attorney Ali Summers.
- Japanese National Detained for Sexually Assaulting Female Airline Passenger
Jamaica Man Sentenced for Passport FraudRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Kahni Lobban (a/k/a Anthony Dobson, a/k/a Christopher George Evans, a/k/a Koran Rutherford), 36, was sentenced 24 months in prison by U.S. District Judge David G. Larimer. The sentence will be served consecutive to a sentence the defendant is currently serving in the Commonwealth of Pennsylvania for a conviction on gun and drug related charges.
Assistant U.S. Attorney Marisa J. Miller, who handled the case, stated that in January 2012, while attempting to obtain a US Passport, the defendant stated that he was a US citizen but presented documents in the name of another individual, claiming that he was that individual. In fact, Lobban is a Jamaican national with no legal status in the United States. The defendant knew that he was not entitled to obtain a US Passport.
The sentencing is the culmination of an investigation on the part of Special Agents of the United States Department of State, under the direction of Resident Agent in Charge William Ferrari.Jackson Woman Sentenced for Stolen Identity Refund FraudRead the Press Release
Jackson, Miss – Ciara Gooden, age 24, of Jackson, was sentenced to 30 months for conspiracy to defraud the United States, U.S. Attorney Gregory K. Davis announced today.
Gooden previously pled guilty to her role in a conspiracy to file fraudulent federal income taxes using the social security numbers and dates of birth which had been stolen from the University of Mississippi Medical Center and the Mississippi Department of Correntions.. The information was then used by others to file false tax returns with the Internal Revenue Service. The tax returns claimed that the tax payers were owed a refund. Those refunds were then electronically deposited into various bank accounts in Mississippi belonging to Gooden and her co-conspirators. Following her prison sentence, Gooden will be on supervised release for 3 years during which she must pay restitution to the United States Government in the amount of $27,579.65.
This case was investigated by the U.S. Secret Service and Internal Revenue Service Criminal Investigation with assistance from the Mississippi Attorney General’s Office, the Mississippi Department of Corrections and the Mississippi Department of Revenue. It was prosecuted by Assistant U.S. Attorney Patrick Lemon.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Help us combat the proliferation of sexual exploitation crimes against children.
Investment Advisor Pleads Guilty to Tax EvasionRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of JOEL WILLIAM CARLSON, 43, of Vadnais Heights, MN, to two counts of tax evasion for tax years 2010 and 2011. CARLSON, who was charged via information on August 4, 2014, pleaded guilty today before Untied States District Court Judge David S. Doty.
“The IRS enforces the nation's tax laws, but also takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others,” said Special Agent in Charge Kelly R. Jackson of the IRS Criminal Investigation St. Paul Field Office. “The IRS Criminal Investigation Division, together with the Department of Justice, will investigate and prosecute those who violate our tax system.”
According to his guilty plea and documents filed in court, CARLSON acted as an investment advisor during 2010 and 2011. He deposited client investments, as well as additional funds belonging to his father, into a Trust Financial Group (“TFG”) account, which was CARLSON’s personal bank account. Instead of investing the funds, CARLSON spent the money on personal items and, when confronted, lied to his clients about the existence of their investments. In addition to intentionally misappropriating both client assets and his father’s assets, totaling more than $1.5 million, CARLSON failed to file personal income tax returns for tax years 2010 and 2011.
According to his guilty plea, CARLSON also failed to timely file personal income tax returns for tax years 2005 through 2007. As a result, the IRS filed a federal tax lien against CARLSON for approximately $495,000.
In addition to paying restitution to the investment fraud victims and his father, CARLSON agreed to pay $1,239,735.35 in restitution to the IRS.
Assistant U.S. Attorney Tracy L. Perzel prosecuted the case.
U.S. Attorney Luger thanked the Internal Revenue Service-Criminal Investigations for conducting the investigation.
Defendant Information: JOEL WILLIAM CARLSON
Vadnais Heights, MN
Charges: • Attempt to Evade and Defeat Tax, 2 countsHaines City Man Sentenced to More Than 5 Years for Smuggling Firearms and Ammunition from the United States to ColombiaRead the Press Release
Orlando, Florida – Senior U.S. District Judge G. Kendall Sharp sentenced Mauricio Arbelaez (42, Haines City) to five years and three months in federal prison for smuggling goods from the United States, possessing an unregistered silencer, and possessing a firearm with an obliterated serial number. Arbelaez pleaded guilty on June 25, 2014.
According to court documents, between November 19, 2012, and November 26, 2012, Arbelaez shipped three packages to Colombia, using a shipping company in Kissimmee and a third-party shipping company located in Miami. The packages contained rounds of ammunition and firearms that were concealed inside electronic gaming systems. Arbelaez did not declare these firearms and ammunition to the shipping company when he shipped the packages, or at any time thereafter. On November 28, 2012, one of the packages was intercepted by Colombian customs officials at the El Dorado International Airport in Bogota, Colombia. Once Colombian officials discovered that the package contained a starter revolver and rounds of ammunition, they notified the third-party shipper in Miami. After speaking to the Colombian officials, the owner of the Miami shipping company inspected the remaining two packages, which were still awaiting final shipment to Colombia. He discovered ammunition and a firearm with an obliterated serial number inside. The two packages were eventually turned over to the Bureau of Alcohol, Tobacco, Firearms, and Explosives, which conducted an investigation into Arbelaez. The owner of the Kissimmee shipping company identified Arbelaez as the person who shipped all three packages.
On July 26, 2013, ATF agents located a safe inside a residence in Orlando where Arbelaez stored firearms and ammunition, including a stolen firearm, and a silencer that was not registered to Arbelaez in the National Firearms Registration and Transfer Record.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). It was prosecuted by Assistant United States Attorney Andrew C. Searle.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violent crime and improve the quality of life where law enforcement efforts are focused.
Guilty Plea in Telemarketing Scam That Targeted Elderly in Woodland, Stockton, Bakersfield, and DinubaRead the Press Release
SACRAMENTO, Calif. —Wladimir Rocha, 35, a Cape Verde national and resident of Winchester, Virginia, pleaded guilty today to one count of mail fraud, in connection with a telemarketing scam that tricked people into sending him money in order to receive cash prizes, United States Attorney Benjamin B. Wagner announced.
According to court documents, the scam targeted elderly victims who believed the money they sent to the defendants would be used to pre-pay taxes and fees on winnings from a sweepstakes or lottery. As part of the scam, Rocha opened different post office boxes in Virginia to receive victim money. The scam targeted victims throughout California, including residents of Woodland, Stockton, Bakersfield, and Dinuba. Co-defendant Joseph Nkunzi pleaded guilty on September 2, 2014, and is scheduled to be sentenced on November 19, 2014.
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Michele Beckwith is prosecuting the case.
Rocha is scheduled to be sentenced by United States District Judge Kimberly J. Mueller on December 3, 2014. Rocha faces a maximum statutory penalty of thirty years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Greenwood Resident Sentenced to Submitting Fraudulent Federal Aid ApplicationsRead the Press Release
OXFORD, Miss. - Felicia C. Adams, United States Attorney for the Northern District of Mississippi, Yessyka Santana, Special Agent in Charge of the United States Department of Education Office of Inspector General, Southeastern Regional Office, and Craig Caldwell, Special Agent in Charge of the United States Secret Service, Birmingham Field Office, announced that:
Shantel McClung aka Shantel Davis, 31, of Greenwood, Mississippi, was sentenced on September 4, 2014, by United States District Judge Sharion Aycock, following her plea of guilty on February 18, 2014 to one count of mail fraud, one count of fraud in relation to student aid provided by the U.S. Department of Education, and one count of aggravated identity theft. The charges stem from a series of fraudulent applications for federal student aid submitted by McClung to the U.S. Department of Education. Each of the fraudulent submissions sought federal student aid for individuals enrolled in online classes, which individuals had no intention of completing the coursework or seeking a degree.
Judge Aycock ordered McClung to serve a total of 57 months in prison, followed by 3 years supervised release. She was also ordered to pay restitution in the amount of $374,000.00. McClung is scheduled to report to prison on October 27.
“Federal student aid exists so that individuals can pursue and make their dream of a higher education a reality. As the law enforcement arm of the U.S. Department of Education, ensuring that those who steal student aid or game the system for their own selfish purposes are stopped and held accountable for their criminal actions is a big part of our mission,” said Yessyka Santana, Special Agent in Charge of the United States Department of Education Office of Inspector General's Southeastern Regional Office. "That’s why I’m proud of the work of OIG special agents and our law enforcement colleagues for holding Shantel McClung accountable for her criminal actions.”
Felicia C. Adams, United States Attorney for the Northern District of Mississippi said: “The punishment imposed upon Shantel McClung reinforces the message that federal courts view her actions as serious crimes which warrant significant punishment. The United States Attorney’s Office is committed to holding those individuals who seek to profit from their fraudulent schemes accountable for their illegal activities.”
This case was investigated by the Department of Education, Office of Inspector General and the United States Secret Service.
Grand America Hotels and Resorts Enters into Non-Prosecution Agreement with U.S. Attorney’s OfficeRead the Press Release
SALT LAKE CITY – Grand America Hotels and Resorts will forfeit nearly $2 million for violations relating to the hiring of undocumented workers, including illegal aliens, according to a non-prosecution agreement signed last week by the corporation, the U.S. Attorney for the District of Utah and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
The Wyoming corporation owns, through various subsidiaries, hotel and resort properties in Utah, Wyoming, Arizona, California, and Idaho.
According to a Statement of Facts included as an exhibit in the agreement, an administrative audit was initiated by HSI at The Grand America Hotel in September 2010. The audit was completed a year later. The audit revealed 133 undocumented individuals were working at The Grand America. All of the identified employees were hired before The Grand America began participating in the E-verify program. The hotel was issued a warning notice and the undocumented workers were terminated.
Prior to the conclusion of the audit, without the knowledge or consent of top executives at the Hotel, lower level and mid-level managers created two nominee temporary employment agencies for the purpose of rehiring some of the terminated employees at The Grand America Hotel. Within days of the HSI warning, approximately 30 of the undocumented workers returned to work at The Grand America Hotel through these two temporary agencies. In October 2011, a third nominee temporary agency was formed to allow about a dozen more undocumented workers to work at The Grand America Hotel. In total, 43 undocumented workers returned to their jobs at the hotel through these three temporary agencies. Most returned using different names and utilizing fraudulent documents.
Search warrants were executed in September 2012 at The Grand America Hotel, the Little America Hotel in Salt Lake City, and a company affiliated with Grand America Hotels and Resorts that held electronic records belonging to the company, as well as two residences in the Salt Lake valley which served as the centers of operation for the three temporary agencies.
According to the Statement of Facts in the non-prosecution agreement, after the search warrants were executed, owners and senior executives of Grand America Hotels and Resorts became aware of the use of the temporary agencies and cooperated with HSI and the U.S. Attorney’s Office to uncover the full extent of the illegal conduct. Grand America also conducted an internal investigation and disclosed its findings to the U.S. Attorney’s Office and HSI.
As a result of the investigation, The Grand America Hotel terminated three operational managers at The Grand America Hotel and one operational manager at the Little America Hotel in Salt Lake City and reprimanded two others. The undocumented workers hired through the outside agencies were not allowed to continue to work at the hotel.
Grand America Hotel and Resorts will not be prosecuted in exchange for its continued full cooperation with HSI's investigation and action the corporation is taking to correct its hiring practices. However, because of the alleged criminal conduct attributable to its employees who were acting on behalf of Grand America, Grand America Hotels and Resorts has agreed to forfeit $1,950,000 to the Department of Homeland Security. The amount of the forfeiture was determined by looking at the total number of illegal aliens employed over the entire period of the investigation and determining the benefit gained by the corporation as a result of employing undocumented workers during that period.
The corporation also is required to take substantial remedial measures, which are expected to cost around $500,000 to implement. Those measures include adopting new policies to comply with immigration law; incorporating immigration law compliance clauses into labor service contracts; re-training human resources employees on I-9 procedures; and agreeing to continue to use the E-Verify employment eligibility verification website. In addition, the company has agreed to retain immigration and corporate counsel to advise the company regarding hiring and immigration procedures. Grand America will continue to cooperate with HSI on future immigration-based compliance programs to ensure that the company continues to maintain a lawful workforce.
Acting U.S. Attorney for Utah Carlie Christensen said the non-prosecution agreement reached with Grand America Hotels and Resorts represents a negotiated agreement not to prosecute the corporation. “We don’t believe there is evidence of corporate involvement in the efforts to set up the temporary employment agencies and the rehiring of the undocumented workers. Those individuals who participated in criminal activity will be prosecuted for their conduct,” Christensen said. “The forfeited sum of $1,950,000 is an appropriate resolution for the corporate entity given the violations committed by employees acting on its behalf.”
"All industries, regardless of size, location and type are expected to comply with the law," said Kumar Kibble, special agent in charge of HSI Denver, which oversees Utah investigations. "As this significant settlement demonstrates, there are real consequences for businesses that employ an illegal workforce."This settlement comes as a result of an I-9 employee verification form audit and subsequent criminal investigation into unlawful hiring practices conducted by HSI. Employers are required by the Immigration Reform and Control Act to maintain for inspection original I-9 forms for all current employees. In the case of former employees, retention of forms is required for a period of at least three years from the date of hire or for one-year after the employee is no longer employed, whichever is longer. HSI conducts these audits in an effort to protect employment opportunities for the nation's lawful workforce and to target businesses that knowingly employ unauthorized workers.
- Galveston Resident Sentenced for Stealing Deceased Benefits for More Than A Decade
Fort Thompson Man Charged with Three Counts of AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, and Assault Resulting in Substantial Bodily Injury to an Intimate Partner.
Calvin Bagola, age 27, was indicted on August 19, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 8, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about February 13, 2014, Bagola unlawfully assaulted an adult female victim with a dangerous weapon, and as a result, the victim suffered serious bodily injury.
The charges are merely accusations and Bagola is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Bagola was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Former Pikeville Pharmacy Manager Sentenced to 72 Months for Conspiring to Distribute Prescription DrugsRead the Press Release
Defendant is the last of 11 conspiracy members to be sentenced
PIKEVILLE, KY - A federal Judge has sentenced a former Pikeville pharmacy manager to 72 months in prison for her role in a conspiracy to illegally dispense thousands of prescription pills.
On Tuesday, U.S. District Judge Amul Thapar sentenced 60-year-old Beverly Lockhart, who worked at multiple Pikeville Pharmacies, for conspiracy to distribute Oxycodone. Under federal law, Lockhart must serve at least 85 percent of her prison sentence.
According to evidence presented at her trial earlier this year, Lockhart conspired with several co-defendants, from June 2006 to July 2011, to illegally dispense prescription drugs to Eastern Kentuckians. Lockhart’s co-defendants include two doctors, the corporation which owns the pharmacy where Lockhart worked, another pharmacy employee and six street-level dealers who obtained their pills from the pharmacies where Lockhart was employed. Dr. Linda Roos, who practiced medicine in Houston, Texas was sentenced to 72 months in December 2013 for her role and has permanently surrendered her license to practice medicine. All 11 defendants have been sentenced.
The investigation was conducted by the U.S. Food and Drug Administration, Office of Criminal Investigations; the Federal Bureau of Investigation; the Kentucky Board of Pharmacy; the Kentucky Office of Inspector General; Kentucky State Police and the Pikeville Police Department.
Assistant U.S. Attorney Lee Gentry prosecuted this case on behalf of the federal government.
Former Piedmont Jail Supervisor Sentenced for Conspiracy, False Tax Returns, and Bank FraudRead the Press Release
RICHMOND, Va. – William A. Coles, Jr., of Pamplin, Va., was sentenced today to 50 months in prison, 2 years of supervised release, and ordered to pay $1,035,014 in restitution for his role in a conspiracy to defraud the United States through the preparation and filing of false federal income tax returns and bank fraud.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Ron Cimino, Deputy Assistant Attorney General for Criminal Matters, Tax Division; and Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office, announced the sentence that was imposed by District Court Judge Henry E. Hudson.
Coles was indicted on seven counts by a federal grand jury on March 4, 2014. The indictment alleged that Coles conspired with his wife, Sybil Coles, from January 2008 until March 2012 to prepare and file fraudulent federal income tax returns for themselves and several other individuals. The indictment also charged William Coles with five counts of assisting in the preparation of fraudulent federal income tax returns and one count of bank fraud.
A jury convicted Coles on all counts on May 22, 2014. Evidence at trial established that Coles, a supervisor at the Piedmont Regional Jail, solicited colleagues at the Jail to have their federal income tax returns prepared by his wife. Several of those co-workers testified that Coles claimed his wife knew of secret law enforcement loopholes to get larger tax refunds. Believing these tax return strategies were legal, the co-workers provided Coles with their tax documents and fees for the preparation of their returns. Unbeknownst to those colleagues, however, these returns were fraudulently prepared.
The evidence at trial also showed that William and Sybil Coles electronically deposited checks generated from these fraudulent federal and State of Virginia returns into student bank accounts in the name of their college-age daughter. The Coles spent this money on personal living expenses, including mortgage and car loan payments and family vacations. In addition, William Coles was interviewed by Special Agents with the Internal Revenue Service Criminal Investigation and failed to disclose the use of the multiple bank accounts where tax refunds and cash were deposited, but admitted that he knew his wife was filing false tax returns and that he had solicited clients from the Jail.
In addition, the trial evidence included multiple sworn claims by William Coles of inflated income and corroborating false documents, including false W-2s and paystubs for him and his wife, that were submitted to the Bank of America and finance companies to obtain a home refinance loan and two car loans.
Sybil Coles pled guilty on January 28, 2014, to a criminal information charging her with aiding and assisting in the preparation of false tax returns and with aggravated identity theft. Judge Hudson sentenced her on May 12, 2014 to five years’ imprisonment.
The case is being prosecuted by Department of Justice, Tax Division Trial Attorney and Special Assistant United States Attorney, Rebecca Perlmutter, and Assistant Attorney General and Special Assistant United States Attorney Michael Jagels. IRS-Criminal Investigation in Richmond, Virginia investigated the case.Former Cook County Sheriff’s Deputy Pleads Guilty to Using Excessive Force Against Detainee in Maywood Lockup in 2010Read the Press Release
CHICAGO — A former Cook County sheriff’s deputy pleaded guilty today to violating the civil rights of a man being held in the county’s detention lockup facility in Maywood in 2010. The defendant, RAFAEL MUNOZ, pleaded guilty at his arraignment after he was charged last week with using unreasonable force.
Munoz, 39, of Chicago, admitted that he grabbed and forcibly pulled the chain that connected a pretrial detainee’s ankle shackles to each other, causing the victim to flip forward and his head and face to hit the concrete floor. As a result of using excessive force, the victim suffered injuries, including a broken nose, a broken tooth, swelling, bruising, and bleeding from cuts to his lip and nose.
Munoz, who became a sheriff’s deputy in August 2006 and resigned last year, is scheduled to be sentenced on Dec. 10 by U.S. Magistrate Judge Maria Valdez in U.S. District Court. He faces a maximum sentence of a year in prison and a $100,000 fine. Munoz also agreed not to seek or accept any future law enforcement employment or any position that would require or permit him to supervise or care for detainees or prisoners.
According to Munoz’s plea agreement, the victim, identified as M.O., was arrested on July 8, 2010, and transported to the Maywood lockup, where he was detained in a holding cell. In that cell, M.O. was restrained with his hands handcuffed behind his back and his legs in ankle shackles. Shortly after 2 a.m. on July 8, 2010, Munoz entered the cell in response to M.O.’s request to loosen his handcuffs. Munoz ordered M.O. to turn around and face the wall and M.O. complied with Munoz’s instructions such that M.O.’s back and handcuffs faced Munoz while M.O. faced the rear of the cell. Throughout Munoz’s interaction with M.O., the victim complied with Munoz’s orders and did not pose a threat to Munoz, any other person, or himself.
After forcing the victim to fall by pulling his ankle chain, Munoz admitted that he attempted to cover up his use of excessive force by completing three false law enforcement reports. In each of those documents, Munoz reported that he entered the cell and “grabbed [M.O.’s] handcuffs to loosen at which time [M.O.] rolled onto the cell floor,” which Munoz knew was false.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Acting Assistant Attorney General Molly Moran of the Justice Department’s Civil Division; and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is being represented by Assistant U.S. Attorneys Andrianna Kastanek and Nathalina Hudson and DOJ Trial Attorney Ali Ahmad.
Plea Agreement
Former Consultant to New York Democratic Senate Campaign Committee Found Guilty of Tax and Fraud ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Shantelle P. Kitchen, the Acting Special Agent in Charge of the New York Office of the Internal Revenue Service – Criminal Investigation (“IRS”), announced that a former consultant to the New York State Democratic Senate Campaign Committee ("DSCC"), MELVIN LOWE, was found guilty today in White Plains federal court of conspiring with New York State Senator John Sampson to defraud the DSCC of $100,000. Lowe was also found guilty of one count of wire fraud arising out of his scheme to defraud the DSCC; three counts of subscribing to false tax returns; three counts of failing to file tax returns; and one count of causing a bank employee to make a false report of a federally insured bank. LOWE was found guilty after a one-week trial before U.S. District Judge Vincent L. Briccetti.
Manhattan U.S. Attorney Preet Bharara stated: "This conviction is another step in restoring the public's trust in New York State politics. As the jury found, Lowe participated in a series of backroom deals in which the bridge of corruption extended between the world of elected officials and their complicit consultants. Consultants, like elected officials, need to be held accountable in order to clean up our political system."
IRS-Criminal Investigation Acting Special Agent in Charge Shantelle P. Kitchen stated: “The public expects that politicians and those who work in the public arena be held to the same standards as they are, especially when it comes to matters of basic citizenship, like paying taxes, and applying for loans. This jury has held Mr. Lowe accountable to these standards.”
According to the Complaint and the Indictment filed in federal court and the evidence presented at trial:
LOWE was retained as a consultant by the DSCC after New York State Senator John Sampson was appointed as the Senate's Democratic Conference Leader following the June 2009 "coup" that temporarily shifted the balance of power in the New York Senate from the Democrats to the Republicans. In early June 2010, Sampson asked LOWE to arrange for a covert payment of $20,000 to Michael Nieves, a Queens-based political operative who had previously worked for former New York State Senator Hiram Monserrate and who had helped engineer the resolution of the Senate coup that had brought Sampson to power. LOWE then arranged for a New Jersey-based political consultant to submit a false invoice to the DSCC for $100,000 in printing services. Sampson approved payment of the invoice and the DSCC sent $100,000 to the New Jersey-based consultant. LOWE instructed the consultant to send $20,000 of the proceeds to Nieves, $75,000 of the proceeds to LOWE's consulting company and to keep $5,000 for himself. The jury heard evidence that LOWE and Senator Sampson had a close relationship of trust that included LOWE giving Sampson an envelope of cash.
LOWE received more than $2.1 million in consulting income from 2007 to 2012. He reported less than $25,000 in income in each of his returns for 2007 through 2009, which he did not file until late 2010. LOWE never filed returns for 2010 through 2012. He never made any payments toward his taxes for the years 2000 through 2012.
LOWE also caused an assistant manager of his bank to make a false statement to his mortgage lender regarding the balance in his checking account. When the mortgage lender sent his bank a Verification of Deposit form to verify LOWE's claim that he had $65,000 in his checking account, LOWE caused the assistant manager to claim that LOWE'S account had a balance of more than $80,000. At that time, the balance in LOWE'S checking account was $2,156.
LOWE, 53, of Manhattan, was found guilty of one count of conspiracy, which carries a maximum sentence of 20 years in prison; one counts of wire fraud, which carries a maximum sentence of 20 years in prison; three counts of subscribing to false tax returns, each of which carries a maximum sentence of 3 years in prison; three counts of failing to file tax returns, each of which carries a maximum sentence of 1 year in prison; and one count of causing a bank employee to make a false statement in a report and statement of a federally insured bank, which carries a maximum sentence of 30 years in prison. The conspiracy, wire fraud and tax charges each carry a maximum fine of $250,000, while the false statement charge carries a maximum fine of $1 million. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the Court.
Mr. Bharara praised the outstanding investigative work of the Internal Revenue Service - Criminal Investigation and the investigators from the U.S. Attorney's Office for the Southern District of New York.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Perry A. Carbone and James McMahon are in charge of the prosecution.
Lowe, Melvin Indictment
Former Barksdale Airman Sentenced to 72 Months in Prison for Receiving Child PornographyRead the Press Release
SHREVEPORT, La. – A former Barksdale airman was sentenced to 72 months in prison and 10 years of supervised release for downloading more than 9,000 files of child pornography, U.S. Attorney Stephanie A. Finley announced today.
Isaac Boger, 22, of Auburn, Ind., was also ordered by U.S. District Judge S. Maurice Hicks Jr. to pay $2,000 for one count of receiving child pornography. According to evidence presented at the March 11, 2014 guilty plea, law enforcement agents detected multiple files containing child pornography being downloaded at a residence on Barksdale Air Force Base. Boger’s residence and computer were searched on January 10, 2013, and more than 9,000 files of child pornography were found on his computer. Boger was an active duty member of the U.S. Air Force when arrested.
Immigrations and Customs Enforcement-Homeland Security Investigations, U.S. Air Force Office of Special Investigations, Louisiana State Police, and Bossier City Marshals Office conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case. This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be reported anonymously.