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9 September 2014
Third Superceding Indicted Files; Defendant Charged with MurderRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Rochester has returned a 10-count, third superseding indictment, which includes a charge for murder in relation to and in furtherance of a Rochester area drug distribution conspiracy.
Tyshawn Simmons, aka “Ty,” 31, is charged with murdering Ryan Adams, 26, on the evening of October 31, 2012, as the leader of a drug trafficking conspiracy. The charge carries a mandatory minimum sentence of 20 years in prison, a maximum of life, and a fine of $2,000,000. The defendant is also charged with discharging a firearm in connection with the murder and in furtherance of the drug trafficking conspiracy which is punishable by a mandatory minimum 10 years in prison, a maximum of life, and a $250,000 fine.
Assistant U.S. Attorney Everardo A. Rodriguez, who is handling the case, stated that the murder charge against Simmons stems from the continuation of a long-term investigation into the drug trafficking activities in the Rochester area of Simmons and the other charged defendants. According to the superseding indictment, the defendant shot Adams six times while he was sitting in the driver’s seat of his car on Lincoln Street in Rochester, on Halloween night 2012. Adams managed to get out of the car and walked approximately 400 feet looking for help before collapsing.
The third superseding indictment also charges Simmons and seven other defendants with conspiracy to possess with intent to distribute, and to distribute, 280 or more grams of cocaine base, five kilograms or more of cocaine, heroin and marijuana. Also charged are: Marquis McMillian, aka ADap,@ 22; Melvin Hill, aka APumpkin;@ Franklin Brock Jr.; aka ALittle Frank,@ 20; Franklin Brock Sr., 40; Patrick Christner, 29; Tina McDonald, 41; and Ciarra Crane, 24. The drug conspiracy charge carries a mandatory minimum term of 10 years in prison, a maximum of life, a fine of $10,000,000, or both.
Defendants Simmons, McMillian and Brock Jr. are also charged with attempting to kill a person (John Doe 1) in retaliation for that person=s cooperation in a federal investigation and with unlawfully using a firearm to commit the shooting. These charges carry maximum penalties of 30 years and life in prison, respectively.
Tyshawn Simmons and Marquis McMillian are also charged with attempting to kill a second person (John Doe 2) because that person was a witness to the shooting of John Doe 1, and to prevent John Doe 2 from testifying in connection with the first shooting. They are also charged with unlawfully using a firearm to commit the shooting of John Doe 2. These charges also carry maximum penalties of 30 years and life in prison, respectively.
Defendants Simmons, McMillian, Brock and McDonald are also charged with unlawfully possessing firearms in furtherance of the drug trafficking conspiracy. The gun charge carries a mandatory minimum sentence of five years in prison, a maximum of life, a fine of $250,000, or both.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The superseding indictment is the result of an investigation headed by the Rochester Police Department, under the direction of Chief Michael Ciminelli, with assistance from the United States Drug Enforcement Administration, under the direction of James J. Hunt, Acting Special Agent in Charge, New York Field Division.South Jersey Man Admits Shooting Four Species of Protected Hawks in His Residential NeighborhoodRead the Press Release
NEWARK, N.J. - A Somers Point, New Jersey man admitted today to killing, or attempting to kill, four different species of hawks protected by federal law, U.S. Attorney Paul J. Fishman announced.
Robert Losasso, 69, pleaded guilty today to six counts of violating the Migratory Bird Treaty act for shooting the birds from his home. He entered his guilty plea before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
Losasso admitted that he fatally shot or attempted to shoot red-tailed, sharp-shinned, red-shouldered and Cooper’s hawks on several occasions. These species are among the tens of thousands of birds of prey that migrate every year from Canada along the Atlantic Flyway through New Jersey.
Losasso also admitted that he didn’t have any permit to shoot the birds.
The Migratory Bird Treaty Act is a statute that was enacted in 1918 and implements in the United States protections afforded migratory birds under several international conventions to which the United States is a party. Breeding populations of red-shouldered hawks are listed as endangered on the State of New Jersey’s Endangered and Threatened Wildlife list. Sharp-shinned hawks and populations of Cooper’s hawks also have special protections under New Jersey state law.
The charges to which Losasso pleaded guilty each carry a maximum potential penalty of six months in prison and a maximum fine equal to the greatest of $15,000 or twice the gross gain or loss resulting from the offenses. Sentencing is currently scheduled for Dec. 15, 2014.
In his plea agreement, Losasso also agreed to pay more than $4,000 in restitution to the wildlife rehabilitation centers that incurred losses treating or euthanizing hawks injured as a result of his conduct.
U.S. Attorney Fishman credited special agents of U.S. Fish and Wildlife Service, Office of Law Enforcement, under the direction of Resident Agent in Charge Carmine Sabia, with the investigation leading to the charges. He also thanked the New Jersey Division of Fish and Wildlife, Bureau of Law Enforcement, and the Somers Point Police Department for their roles in the case.
The government is represented by Assistant U.S. Attorney Kathleen P. O’Leary of the U.S. Attorney's Office Health Care and Government Fraud Unit in Newark.
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Defense counsel: Assistant Federal Public Defender Linda Foster Esq., Newark
Losasso, Robert Information
Somerset Woman Charged with Converting Social Security Benefit PaymentsRead the Press Release
JOHNSTOWN, Pa. - A resident of Somerset, Pa., has been indicted by a federal grand jury in Johnstown on a charge of conversion of government funds, United States Attorney David J. Hickton announced today.
The one-count indictment named Lisa M. Azzarella, 44.
According to the indictment presented to the court, from Jan. 1, 2008, to Aug. 25, 2010, Azzarella did receive and convert falsely to her own use $21,124, which represents 32 separate Social Security Administration benefit payments made to her to which she was not entitled.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Social Security Administration, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Snohomish County Man Sentenced to Long Prison Term for Distributing Pictures of Child RapeRead the Press Release
A 35- year-old Arlington, Washington man was sentenced today in U.S. District Court in Seattle to a total prison sentence of fifteen years in prison for distribution of child pornography, announced U.S. Attorney Jenny A. Durkan. CHRISTOPHER DAVID DOGGETT, pleaded guilty in May 2014. DOGGETT has a 2003 conviction for possession and distribution of child pornography. DOGGETT has already served 56 months of a 90 month state sentence for distributing child pornography, and today was sentenced to an additional 124 months as his federal sentence. The federal sentence is to run concurrently with the remainder of his state sentence, for a total prison term of 15 years. At sentencing Chief U.S. District Judge Marsha J. Pechman said DOGGETT had “a long troubled history” with child pornography, and would need to be “vigilant every day so there aren’t any more victims.”
According to records filed in the case, when Snohomish County Sheriff’s deputies searched DOGGETT’s home on January 22, 2010, they discovered more than 600 images of child pornography on his digital media devices that he had distributed via computer. On DOGGETT’s smartphone, investigators found images of him molesting a young child. DOGGETT was convicted in Snohomish County Superior Court of dealing child pornography in February 2011.
Under the terms of the federal plea agreement, DOGGETT will be required to register as a sex offender and will undergo a psycho-sexual evaluation. Chief Judge Pechman sentenced him to lifetime supervision by a federal probation officer.
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 case was investigated by the Snohomish County Sheriff’s Department and was prosecuted by Assistant United States Attorney Jerrod Patterson.Six Individuals Convicted in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Guilty pleas were taken in six criminal cases in Clarksburg Federal court, including three for drug trafficking.
United States Attorney William J. Ihlenfeld, II, announced that Cherise JONES, age 31, of Fairmont, West Virginia, entered a plea of guilty to “Distribution of Crack Cocaine within 1,000 feet of Maple Avenue Apartments.” JONES, who is free on bond, faces up to 40 years in prison. This case was investigated by the Three Rivers Drug & Violent Crime Task Force.
Paulette LAMB, age 25, of Michigan, entered a plea of guilty to “Possession with Intent to Distribute Oxycodone.” LAMB, who is in custody pending sentencing, faces up to 20 years in prison.
Jeremell SIMPSON, age 31, of Columbus, Ohio, entered a plea of guilty to “Distribution of Crack Cocaine.” SIMPSON, who is in custody, faces up to 20 years in prison.
The LAMB and SIMPSON cases were investigated by the Mon Valley Drug & Violent Crime Task Force.
Dustin MOORE, age 24, of Buckhannon, West Virginia, entered a plea of guilty to “Concealing a Person from Arrest.” MOORE, who is free on bond pending sentencing, faces up to 5 years in prison. This case was investigated by the United States Marshals Service.
The JONES, LAMB, SIMPSON and MOORE cases were prosecuted by Assistant U.S. Attorney Zelda E. Wesley.Thomas CUETO, age 65, of Bridgeport, West Virginia, entered a plea of guilty to “Theft of Government Funds”, admitting that he fraudulently obtaining benefits from the Veterans Administration. CUETO, who is free on bond pending sentencing, faces up to 10 years in prison. The case was prosecuted by Assistant U.S. Attorney Andrew R. Cogar and was investigated by the Veterans Affairs, Office of Inspector General.
Clarence THOMPSON, age 35, of Clarksburg, entered a plea of guilty to “Felon in Possession of a Firearm.” THOMPSON, who is currently serving a state parole revocation sentence originating from the Circuit Court of Harrison County, faces up to 10 years in prison. This case was prosecuted by Assistant U.S. Attorney Shawn A. Morgan and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Greater Harrison County Drug and Violent Crime Task Force and the Clarksburg Police Department.
U.S. Magistrate Judge John S. Kaull presided.Six Corporate Executives and Six Corporate Entities Indicted for Orchestrating A $500 Million Offshore Asset Protection, Securities Fraud, and Money Laundering SchemeRead the Press Release
A multi-count indictment was unsealed this morning in federal court in Brooklyn, New York, against six individual defendants: Robert Bandfield, a U.S. citizen; Andrew Godfrey, a citizen of Belize; Kelvin Leach, a citizen of the Bahamas; Rohn Knowles, a citizen of the Bahamas; Brian De Wit, a citizen of Canada; and Cem Can, a citizen of Canada; and six corporate defendants: IPC Management Services, LLC; IPC Corporate Services Inc.; IPC Corporate Services LLC (collectively, IPC Corp); Titan International Securities, Inc. (Titan); Legacy Global Markets S.A. (Legacy); and Unicorn International Securities LLC (Unicorn).1 The charges include conspiracy to commit securities fraud, tax fraud, and money laundering. Bandfield’s initial appearance for removal proceedings to the Eastern District of New York is scheduled for tomorrow at the Wilkie D. Ferguson Jr. United States Courthouse, 400 North Miami Avenue, Miami, Florida. The government will seek extradition for the other individual defendants.
The indictment was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Shantelle P. Kitchen, Acting Special Agent-in-Charge, United States Internal Revenue Service, Criminal Investigation, New York (IRS-CI); and James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York.
“As alleged, Bandfield and his co-conspirators devised not only a fraudulent scheme but an elaborate corporate structure based on lies and deceit designed to enable U.S. citizens to evade and circumvent our securities and tax laws. They set up sham companies with figureheads at the helm in an attempt to deceive U.S. law enforcement and regulators and bragged about their scheme to their clients,” stated United States Attorney Lynch. “Today’s sweeping indictment, charging the individuals and companies responsible for this $500 million scheme, closes this fraudulent offshore safe haven and sends a strong message to those who seek to abuse the financial markets in order to enrich themselves that we will investigate and prosecute them no matter where they set up shop.” Ms. Lynch expressed her grateful appreciation to the United States Securities and Exchange Commission (SEC) for its significant cooperation and assistance in the investigation. The SEC has filed a civil complaint in this case as well.
“As alleged, the defendants concocted an intricate scheme using sham companies to make money while repeatedly evading and violating U.S. securities and tax laws. The indictment of these defendants should serve as a stern reminder that such greed-based behavior comes at a cost. The FBI will continue to use its investigative expertise in working with law enforcement partners to identify, disrupt, and dismantle sophisticated fraud schemes to ensure the integrity and transparency of our financial markets,” stated FBI Assistant Director-in-Charge Venizelos.
“The investigation of offshore tax evasion and money laundering are top priorities for IRS-Criminal Investigation, and we are committed to using all of our enforcement tools to stop this abuse. The enactment of the Foreign Account Tax Compliance Act (FATCA) is yet another example of how it is becoming more and more risky for U.S. taxpayers to hide their money globally. Moreover, this partnership of IRS-CI, the FBI, HSI, and the U.S. Attorney’s Office demonstrates the government’s resolve to combat international crime,” stated IRS-CI Acting Special Agent-in-Charge Kitchen.
“Today’s arrests and charges disrupt an illicit offshore operation that was allegedly laundering money for corrupt clients and cheating the U.S. government out of half a billion dollars in tax revenue,” said HSI New York Special Agent-in-Charge Hayes. “The collaboration between HSI and its federal law enforcement partners serves as an example of law enforcement’s global reach to dismantle criminal organizations.”
As alleged in the indictment, between January 2009 and September 2014, this group of conspirators, masquerading as financial professionals, concocted three interrelated schemes to: (a) defraud new investors in various U.S. publicly traded companies through, among other things, fraudulent concealment of the defendants’ corrupt clients’ ownership interests in the U.S. publicly traded companies and their fraudulent manipulation of artificial price movements and trading volume in the stocks of those companies; (b) aid the corrupt clients to circumvent the IRS’s reporting requirements under, among other statutes, the Foreign Account Tax Compliance Act (FATCA); and (c) launder money for the corrupt clients through financial transactions to and from the United States involving proceeds of fraud in the sale of securities. As part of this fraudulent offshore scheme, the defendants laundered approximately $500 million for the corrupt clients – who included more than 100 U.S. citizens and residents.
To facilitate these interrelated schemes, the defendants created shell companies in Belize and Nevis, West Indies, for the corrupt clients and placed nominees at the helm of these companies. This structure was designed to conceal the corrupt clients’ ownership interest in the stock of U.S. public companies, in violation of U.S. securities laws, and enable the corrupt investors to engage in trading under the nominee’s names through brokerage firms also set up in Belize. For example, this structure enabled the defendant De Wit and a U.S. corrupt client to manipulate the stock of Cannabis-Rx, Inc., a microcap or penny stock company which traded under the ticker symbol CANA, through a series of orchestrated transactions between March 27, 2014 and April 16, 2014. On March 28, 2014 alone, De Wit received at least five telephone calls from the corrupt client with specific instructions to fraudulently orchestrate the trading of CANA’s stock. That day, CANA’s stock, which had not traded since July 2, 2013, had a trading volume of 189,800 shares. Ultimately, CANA’s stock price plummeted from $13.77 per share on March 27, 2014 to $0.50 per share on April 16, 2014.
The defendants’ scheme also enabled the U.S. corrupt clients evade reporting requirements to the IRS by concealing the proceeds generated by the manipulated stock transactions through the shell companies and their nominees. For example, in response to a request received by a U.S. corrupt client from a U.S. transfer agent who had to determine whether the proceeds from manipulative stock trading transaction were taxable under U.S. law, the defendant Bandfield forwarded an IRS Form signed by co-defendant Godfrey as the nominee for the shell company which had been set up at the request of the client. At one point during the government’s investigation, Bandfield boasted to an undercover law enforcement agent that he had specifically designed this “slick” corporate structure to counter President Barack Obama’s new laws, a reference to FATCA.
An example of how the defendants’ scheme enabled U.S. corrupt clients to launder the proceeds from their fraudulent trading in U.S. public companies was the production of unidentifiable debit cards for the clients allowing them to freely transfer their proceeds back into the United States.
The government’s case is being prosecuted by Assistant United States Attorneys Jacquelyn M. Kasulis, Winston M. Paes, and Brian D. Morris.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants. For more information on the task force, visit www.stopfraud.gov.
The Individual Defendants:
ROBERT BANDFIELD, also known as “Bob Bandfield”
Age: 70
Residence: Belize City, Belize
ANDREW GODFREY
Age: 51
Residence: Belize City, Belize
KELVIN LEACH
Age: 34
Residence: Belize City, Belize
ROHN KNOWLES
Age: 29
Residence: Belize City, Belize
BRIAN DE WIT
Age: 45
Residence: Belize City, Belize
CEM CAN, also known as “Jim Can”
Age: 44
Residence: Belize City, Belize
E.D.N.Y. Docket No. 14-CR-476 (ILG)
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1 The charges announced today are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Shelby Woman Pleads Guilty to Embezzling over $410,000 from Employer and Filing A False Tax ReturnRead the Press Release
CHARLOTTE, N.C. – A Shelby woman appeared before U.S. Magistrate Judge David S. Keesler today and pleaded guilty to stealing more than $410,000 from her employer and filing a false tax return, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Tara Gist-Savage, 40, of Shelby, N.C. pleaded guilty to one count of wire fraud and one count of filing a false tax return.
U.S. Attorney Tompkins is joined in making today’s announcement by Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI) and Chief James W. Buie of the Gaston County Police Department.
According to charging documents and today’s court proceedings, from 2008 to 2013, Gist-Savage was employed by an energy services company based in Belmont, N.C. Gist-Savage was in charge of the energy company’s payroll, as well as the payroll of an affiliated company. Court records show that beginning in at least 2008, Gist-Savage used her position to access the personal identity information of the companies’ former and inactive employees and used that information to generate fraudulent payroll checks and wires in the names of at least 49 individuals. According to court documents, Gist-Savage provided the fraudulent information to various payroll businesses used by the companies to generate payroll payments, and directed the fraudulent payroll checks and wires to four different bank accounts held in her name. In all, court documents indicate that Gist-Savage embezzled $410,936.04 in this manner from her former employer.
According to charging documents and today’s court proceedings, for years 2008 through 2012, Gist-Savage failed to report the fraudulently obtained income on her U.S. Individual Income Tax Returns. The estimated tax due and owing relative to the unreported income was approximately $101,650.
Gist-Savage has been released on bond. The wire fraud charge carries a maximum prison term of 20 years and a $250,000 fine. The filing false tax return charge carries a maximum prison term of three years and a $250,000 fine. As part of her plea agreement, Gist-Savage has agreed to pay restitution, the amount of which will be determined by the Court at sentencing. A sentencing date for the defendant has not been set yet.
The investigation was handled by IRS-Criminal Investigation and the Gaston County Police Department. The prosecution for the government is being handled by Assistant United States Attorney Jenny Sugar of the U.S. Attorney’s Office in Charlotte.
Second Defendant Pleads Guilty to Conspiracy to Commit Sex Trafficking of A MinorRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 32-year-old former Pittston resident pleaded guilty today before Senior U.S. District Court Judge Edwin M. Kosik to conspiring with others to recruit, harbor, and transport minor females to engage in commercial sex acts for money during the summer of 2013 in Luzerne and Dauphin counties.
According to United States Attorney Peter Smith, the defendant, Randy Coleman, Jr, admitted to participating in a scheme to use minor females to engage in prostitution. Coleman and his co-conspirators, including Gregory Boone who pleaded guilty last week, used cell phones to produce and transmit photographs of the females which were posted in “escort services” advertisements on a website to facilitate prostitution activities in motels in Luzerne County and in the Harrisburg area of Pennsylvania. Coleman’s role in the conspiracy involved renting motel rooms and acting as a “bodyguard” for the prostitution activities.
Coleman was indicted by a federal grand jury in December 2013, as a result of an investigation by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Pennsylvania State Police, Pittston Police, and the Luzerne County District Attorney’s Office.
Coleman faces a potential maximum sentence of life in prison and a $250,000 fine. Judge Kosik ordered a pre-sentence investigation to be completed. Sentencing will be scheduled at a later date.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
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."
Second Defendant Detained for Allegedly Transporting Boston Area 17-year-old to R.I. for Sex TraffickingRead the Press Release
PROVIDENCE, R.I. – Ricky Wallace, a/k/a Justice, 33, of Pawtucket, was ordered detained on sex trafficking charges today by U.S. District Court Magistrate Judge Patricia A. Sullivan, for allegedly trafficking a 17-year-old girl from the Boston area to Rhode Island for the purposes of commercial sexual activity, announced United States Attorney Peter F. Neronha; Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI; Pawtucket Police Chief Paul King; Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police; and United States Marshal Jamie A. Hainsworth.
According to an affidavit in support of a criminal complaint and arrest warrant filed with the court, the victim was allegedly taken against her will from South Station in Boston in the early morning hours of August 18, 2014, and driven to Rhode Island for the purposes of being trafficked for commercial sexual activity. According to the victim, she was driven to the same Pawtucket residence where she was located on August 25, 2014, and rescued by FBI agents, Pawtucket Police and Central Falls Police.
According to the affidavit, Wallace allegedly recruited the 17-year-old woman and, on a separate date, another person, to travel to Rhode Island where they allegedly were to be trafficked for the purposes of commercial sexual activity. Wallace was arrested on August 29, 2014, on a bench warrant issued from the Providence Superior Court. He is detained at the ACI.
On August 26, 2014, Kemont Bowie, a/k/a Daddy, 34, of Providence, was arrested and ordered detained in federal custody in this matter. According to court documents, it is alleged that on two occasions Bowie drove to Boston and picked up the alleged victims and brought them to Rhode Island for the purposes of sex trafficking.
Wallace and Bowie are charged in federal criminal complaints with one count each of sex trafficking of a child and transportation of a minor.
A criminal complaint is merely an allegation 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.
The case is being prosecuted in federal court by Assistant U.S. Attorney Pamela E. Chin. The U.S. Attorney’s Office is working in conjunction with the Rhode Island Department of Attorney General in the prosecution of this matter
The FBI, Pawtucket Police and Rhode Island State Police are being assisted in the investigation of this matter by the United States Marshal Service.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]San Antonio Area Businesswoman Pleads Guilty to Orchestrating Estimated $1.6 Million Fraud SchemeRead the Press Release
The owner and managing partner of HipDingo stores in San Antonio, Boerne and Fredericksburg and former marketing director for a land development company, Rinco of Texas, Inc. (Rinco), and Rockin’ J Ranch (Rockin’ J) faces up to 20 years in federal prison after pleading guilty to orchestrating an estimated $1.6 million wire fraud scheme announced United States Attorney Robert Pitman and FBI Special Agent in Charge Christopher H. Combs.
Appearing before United States Magistrate Judge John Primomo this afternoon in San Antonio, 47–year-old Boerne, TX, resident Lea Ann Blystone pleaded guilty to one count of wire fraud and agreed to forfeit to the government any and all HipDingo inventory, assets and equipment; five real estate properties in Kendall County (TX); and, three vehicles. By pleading guilty, Blystone admitted that from January 2009 until August 2011, she devised and implemented a scheme to defraud Rinco and Rockin’ J to obtain money and other property by means of false and fraudulent pretenses.
As marketing director for Rinco and Rockin’ J, Blystone coordinated staffing and vendor payments for promotional booths or display space at shows, malls, sporting and other events. Blystone caused Rinco and Rockin’ J to fraudulently pay her ex-husband and Rockin’ J contractor, 49-year-old Michael J. Webb of San Antonio; 48-year-old Rockin’ J contractor Karen Lindsay of Boerne; and 56-year-old Boerne resident and Rockin’ J contractor Cheryl E. Hartsfield for staffing the promotional displays. In some instances, Rinco and Rockin’ J paid for services when no promotion had been done at all at a stated location, or for work performed for the benefit of Blystone at HipDingo.
Webb, Lindsay and Hartsfield have each pleaded guilty to wire fraud and are currently awaiting sentencing. Defendants still facing charges in connection with this investigation include: 47-year-old Boerne resident and Rockin’ J contractor Roy E. Pokrant, Jr.; 47-year-old Boerne resident and Rockin’ J contractor Thomas J. Worsham; and, 48–year-old Rinco employee and HipDingo co-owner Manson Porter of Boerne. Porter is charged by indictment with three counts of wire fraud and two counts of witness tampering. Pokrant and Worsham are each charged with three counts of wire fraud. Jury selection is scheduled for October 27, 2014. Upon conviction, each wire fraud and witness tampering charge call for up to 20 years in federal prison; each forged endorsement charge, up to ten years in federal prison.
The Government is also seeking a monetary judgment in this case in the amount of $1,597,708 representing the amount of proceeds traceable to the above mentioned scheme.
This case was investigated by agents with the Federal Bureau of Investigation. Assistant United States Attorney William R. Harris is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. Porter, Pokrant and Worsham are presumed innocent until proven guilty in a court of law.
Sabine Parish Man Pleads Guilty to Distributing MethamphetamineRead the Press Release
SHREVEPORT, La. –A Sabine Parish man pleaded guilty Monday to distributing methamphetamine in the Many area, U.S.Attorney Stephanie A. Finley announced.
Jamal Holland, 28, of Many, La., entered a guilty plea for one count of distribution of methamphetamine before U.S. District Court Judge S. Maurice Hicks Jr. According to evidence presented at the guilty plea, law enforcement conducted controlled purchases of methamphetamine from Holland on September 18, 2013 and October 3, 2013. On both occasions, Holland was recorded selling 27 grams of methamphetamine.
Holland faces up to 20 years in prison, at least four years supervised release, and a $1 million fine. A sentencing date of January 8, 2015 was set.
The DEA and the Sabine Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Brandon B. Brown is prosecuting the case.
- Rio Grande Valley Durable Medical Equipment Company Owner Indicted on Multiple Health Care Crimes
Registered Sex Offender Sentenced for Receiving Child PornographyRead the Press Release
ATLANTA – Charles Pelts, who was already a registered sex offender, has been sentenced to 15 years in prison for receipt of child pornography.
“By trafficking in graphic images of pornography depicting very young children, Pelts contributed to the horrifying child exploitation trade,” said United States Attorney Sally Quillian Yates. “We remain steadfast in partnering with federal and local law enforcement officers to vigorously prosecute those engaged in the market for child pornography.”
“The defendant’s egregious disregard for the law and his perverse desire to witness the rape of children simply have no place in our society,” said Ryan L. Spradlin, acting special agent in charge of ICE Homeland Security Investigations in Atlanta. “The victims whose abuse is so starkly recorded in collections like this know exactly what sort of sick pleasure the defendant derived from seeing the worst moments of their lives. It’s enough to make anyone’s skin crawl.”
According to United States Attorney Yates, the charge, and other information presented in court: In or about November 2013, special agents with the Department of Homeland Security Investigations, Immigration and Customs Enforcement (“HSI”), discovered that Pelts, a resident of Marietta, Ga., had used two e-mail accounts to transfer images of child pornography to others – including images depicting graphic sex acts involving very young children. HSI special agents subsequently obtained warrants to search Pelts’ e-mail accounts and his cell phone. A review of his e-mail accounts revealed that Pelts had received approximately 11,000 images of child pornography, including images of toddlers and infants. His cell phone contained approximately 4,050 images of child pornography. The agents also learned that Pelts had been registered as a sex offender since 2004.
Pelts, 35, of Marietta, Ga., was sentenced to 15 years in federal prison, to be followed by lifetime supervised release. Pelts will also be required to register federally as a sex offender when he is released from prison. He pleaded guilty on May 14, 2014.
The case was investigated by Homeland Security Investigations, Immigration and Customs Enforcement.
Assistant United States Attorney Ryan K. Buchanan prosecuted the case.
This case is a part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Readout of Attorney General Holder’s Meeting with Counterparts from Mexico, El Salvador, Guatemala and HondurasRead the Press Release
The following statement is attributable to Justice Department spokesman Brian Fallon regarding Attorney General Eric Holder’s visit to Mexico City today to meet with his fellow attorneys general from across Central America to discuss the situation involving migrant children:
“Attorney General Holder attended a joint meeting in Mexico City today with his counterparts from Mexico, El Salvador, Guatemala and Honduras. The group discussed ways to improve public safety across Central America in order to address the underlying factors that have contributed to the flow of unaccompanied minors across the Southwest border of the United States. Specifically, the group considered strategies about how to best confront the smugglers of these unaccompanied children, the violent gangs who victimize them in their home countries, and the cartels who tax or exploit them in their passage.
“Going forward, the Attorneys General agreed to create a high-level working group with representatives of each Attorney General's office in order to develop an integrated strategy to deal efficiently with this issue. The working group will hold its first meeting within the coming weeks to develop a coordinated plan of action that will be presented at a subsequent meeting of the attorneys general.”
Postal Employee Pleads Guilty to Mail TheftRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today, that Abra K. Albrecht, 31, of Carrollton, Illinois, pled guilty to a one-count indictment charging that she had stolen mail that had been entrusted to her for delivery. Sentencing has been set for January 12, 2015, at 10:00 a.m. in United States District Court in East St. Louis, Illinois. Albrecht will face up to 5 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
Albrecht, at her plea, admitted that while employed by the United States Postal Service and working at both the Kampsville and Hardin Post offices, in February of 2014, she had stolen mail that had been deposited for delivery. Albrecht further admitted that she had taken a debit card from a letter that had been entrusted to her for delivery and then used that card for her own personal gain. Albrecht was caught when she was identified using the stolen debit card on surveillance video.
The investigation was conducted by agents of the U.S. Postal Service, Office of Inspector General. The case is being prosecuted by Assistant United States Attorney Ranley R. Killian
Poachers Convicted by Federal JuryRead the Press Release
ASHEVILLE, N.C. – A federal jury sitting in Asheville convicted on Monday, September 8, 2014, Jerry Francis Parker, 63 and Walter Henry Stancil, 66, both of Rabun County, Georgia for their involvement in illegal bear hunting activities and related offenses, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. The defendants are subject to one year in prison, a $100,000 fine, the loss of their hunting licenses for five years, and a period of banishment from the national forests.
According to evidence presented at trial and documents filed with the court, the defendants engaged in a number of illegal hunting activities in 2011, including using chocolate candy as bait at a site that one of the defendants described as “probably the most active bait site in the United States.” The defendants were convicted of violating the Lacey Act, which criminalizes the interstate transportation of wildlife taken in violation of state or federal hunting laws.
American black bears are a species of special concern warranting federal and state protection. The hunting of American black bears is illegal at any time within the National Parks. Hunting on Forest Service land is only permitted during open season and in compliance with federal and state law. The U.S. Attorney is committed to the protection of natural resources from illegal hunting activities, including baiting, spot-lighting and exceeding hunting limits.
The investigation was conducted by the US Fish and Wildlife Service, the US Forest Service, the NC Wildlife Resources Commission, and the Georgia Department of Natural Resources. The prosecution was handled by Assistant U.S. Attorney Richard Edwards of the U.S. Attorney’s Office in Asheville.
Pleasant Hill Woman Sentenced to Twenty-Nine Months in Prison for Her Role in Identity Theft Tax SchemeRead the Press Release
OAKLAND – Sherry L Hender was sentenced to 29 months and ordered to pay restitution of $51,629 for theft of government property and aggravated identity theft, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
Hender pleaded guilty on June 3, 2014. According to the plea and court documents, beginning in August 2011, Hender assisted in preparing hundreds of false income tax returns, claiming fraudulent tax credits and fraudulent tax refunds. In order to conduct her tax scheme, Hender created an identification information form, “ID-DOC”, which was used to prepare the fraudulent income tax returns. This form contained questions about personal identification, including name, date of birth, Social Security number, income, number of dependents, expenses, and occupation.
In January 2012, Hender opened a business bank account which was used to receive tax refunds. Between Jan. 18, 2012 and Feb. 21, 2012, Hender used the information obtained on the ID-DOC to prepare and submit fraudulent income tax returns, directing the IRS to send the refunds to her bank account. On Feb. 7, 2012, and Feb. 24, 2012, Hender told IRS Special Agents that she knew the tax refund money was obtained fraudulently and agreed to return it to the IRS. However, she did not return the money to the IRS. Rather, she withdrew the funds and spent it on personal items and illegal drugs. Hender obtained $51,629 in fraudulent refunds.
Hender, 50, of Pleasant Hill, was charged on May 21, 2013, with thirteen counts of theft of government property and one count of aggravated identity theft. She pleaded guilty to one count of theft of government property and to the aggravated identity theft count.
The sentence was handed down by the Honorable Jeffrey S. White, United States District Court Judge in Oakland. Judge White also sentenced Hender to a three-year term of supervised release, and ordered her to pay $200.00 in special assessment. The defendant was ordered to surrender on Oct. 21, 2014.
Assistant U.S. Attorney Thomas Moore is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
(Hender indictment )
Pine Ridge Man Indicted for Possession of Firearm by A Prohibited PersonRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, man has been indicted by a federal grand jury for Possession of Firearm by a Prohibited Person.
Jonathan Lee Twiss, age 30, was indicted on August 26, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on September 5, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is ten 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 Twiss knowingly possessing a .45 caliber pistol on March 20, 2014, near Pine Ridge, after having been convicted of one or more crimes punishable by imprisonment for more than one year.
The charge is merely an accusation and Twiss 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.
Twiss was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for November 4, 2014.
Pine Ridge Man Charged with Aggravated Sexual Abuse by ForceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse by Force and Sexual Abuse.
Ryan Bissonette, age 33, was indicted on June 17, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on September 5, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is life imprisonment and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Bissonette forcefully engaging in a sexual act with a female, who was physically incapable of declining participation, on August 8, 2013, near Pine Ridge.
The charges are merely accusations and Bissonette 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.
Bissonette was released on bond pending trial. A trial date has been set for November 4, 2014.
Owners of Spice and Bath Salts Store Sentenced to Ten Years in PrisonRead the Press Release
NEWPORT NEWS, Va. – The owners of a Gloucester, Virginia store that sold synthetic marijuana and amphetamines were each sentenced yesterday to ten years in prison, followed by three years of supervised release, and were ordered to forfeit $425,000 as proceeds of their drug distribution activities.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after the sentences were imposed by U.S. District Judge Raymond A. Jackson.
Daniel Bray, 34, and Rachel Webb-Harvey, 25, both of Gloucester, pleaded guilty in September 2013 to conspiracy to distribute, and possess with intent to distribute, analogue drugs as the owners of the store “A Lil’ of This, a Lil’ of That” on George Washington Highway in Gloucester. According to court records, from January to July 2012, the defendants sold a variety of analogue drugs commonly referred to as “Spice,” the generic street name for synthetic cannabinoids that mimic the physical effects of marijuana, and “Bath Salts,” which contain substituted cathinones that have effects similar to amphetamines.
Five other defendants were sentenced previously for their roles in the conspiracy. Those defendants include Jose N. Alvarado, who was sentenced to seven years in prison; Sandra A. Webb, who received 56 months; Shawn R. Woodlen, who received 50 months; Jeromy L. Hawk, who received ten months; and Jeffery A. Fowlkes, who received five months in prison.
This case was investigated by Homeland Security Investigations, IRS-Criminal Investigation, the U.S. Postal Inspection Service, the Virginia State Police Tri-Rivers and Peninsula Task Forces, the U.S. Air Force Office of Special Investigations, and the Gloucester County Sheriff’s Office. Assistant U.S. Attorney Eric M. Hurt prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:13-cr-45.Tweet
Orange County Gang Members Convicted of Sex Trafficking of A MinorRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III, announces that a federal jury has found Xavier Francisco Villanueva, a/k/a “X,” (25, Orlando) Jose Carmona, a/k/a “Hood,” (21, Orlando) and Ashley Nicole Barnett, a/k/a “Snow,” (25, Orlando) guilty of conspiracy to commit sex trafficking of a minor, for which they each face up to life in prison. Carmona and Barnett were also found guilty of aiding and abetting each other in the sex trafficking of a minor. This charge carries a minimum sentence of 15 years, up to life in prison. The jury returned the verdict on September 5, 2014. The sentencing hearings are scheduled for December 4, 2014.
According to the evidence presented at trial, between January 17, 2013, and January 25, 2013, the above-named individuals conspired to engage a 14-year-old girl in a commercial sex act. The individuals were part of the “Nine Trey Billy Bad Ass” gang, which is affiliated with the “Bloods” street gang. They used drugs, physical restraint, and threats of force in order to engage the minor in prostitution activities for their own financial gain and benefit.
This case was investigated by the Federal Bureau of Investigation and the Metropolitan Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Ilianys Rivera Miranda and Karen Gable.
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.projectsafechildhood.gov.
North Carolina U.S. Attorney’s Offices Co-sponsor Federal Domestic Violence Conference September 10-12, 2014, in GreensboroRead the Press Release
RALEIGH - United States Attorneys Thomas G. Walker, Ripley Rand, and Anne M. Tompkins announced that their three Offices are co-sponsoring a Federal Domestic Violence Conference September 10-12, 2014, at the Greensboro-High Point Marriott in Greensboro. Preventing and prosecuting Domestic Violence cases is a priority of the U.S. Department of Justice, and this training is designed to bring together law enforcement and service providers to educate them about this deplorable crime. Equally important is caring for and providing services to the victims of domestic violence, and discussions of issues related to victim services topics are also on the agenda.
Domestic violence continues to plague our communities, adversely affecting countless victims and their families. There is a great need to educate those involved in responding to domestic violence about the tools available to treat the victims and prosecute the perpetrators using federal laws when appropriate. There is also a need to educate service providers and law enforcement about the methods to reduce the barriers for victims seeking services, and to educate our state and local partners about the federal tools available to prosecute these crimes.
“One of the Department of Justice’s priorities is protecting vulnerable victims and holding offenders accountable, and the North Carolina United States Attorney’s Offices are committed to working together effectively with law enforcement and other groups to fight domestic violence,” said United States Attorney Rand.
“Domestic violence is a national epidemic and it is happening here, in our own communities, with many of the victims and perpetrators hiding in plain sight. The U.S. Attorney’s Office for the Western District of North Carolina has played an active role in raising public awareness, increasing law enforcement training and establishing partnerships with victim service providers in Western Carolina. This symposium is a continuation of our efforts to create and maintain these strong partnerships, which can be force multipliers in our fight against domestic violence,” said U.S. Attorney Tompkins.
“This event is an excellent example of the vital collaboration needed between the law enforcement and the service provider community. Efforts to confront domestic violence must include an increased awareness of the indicators of this crime by those who are most likely to encounter the victims,” said U.S. Attorney Walker.
The conference is also being co-sponsored by the U.S. Department of Justice, Office for Victims of Crime, the North Carolina Coalition Against Domestic Violence, the North Carolina Governor’s Crime Commission, the North Carolina Justice Academy, the Carolinas Institute for Community Policing, the North Carolina Victim Assistance Network, the North Carolina Coalition Against Sexual Assault, and the North Carolina Conference of District Attorneys.
Credentialed members of the media are invited to the conference. The agenda is attached with more details about the training.
Nine Sentenced to Prison for Distribution of OxycodoneRead the Press Release
Orlando, Florida – Senior U.S. District Judge Gregory Presnell has sentenced nine individuals to federal prison for conspiracy to distribute Oxycodone. Ten individuals were charged by criminal complaint on April 9, 2013. Nine were arrested and subsequently pleaded guilty for their roles in this case. One individual remains a fugitive.
According to the court documents, Edwin Morales-Hernandez and Rafael Rivera managed a Drug Trafficking Organization (DTO) that fraudulently obtained prescriptions for various controlled substances, mostly Oxycodone. Members of the DTO traveled to Florida from Puerto Rico and Massachusetts, posing as patients at various pain management clinics. These “clinic patients” would obtain prescriptions for Oxycodone and provide them to Morales or Rivera, who filled the prescriptions at pharmacies in the Middle District of Florida, including Encore Pharmacy, where Francisca Maria Paez worked as a licensed pharmacy technician. On a number of occasions, Morales-Hernandez and Rivera mailed the Oxycodone to co-conspirators in Holyoke, Massachusetts. After the Oxycodone was sold in Massachusetts, the drug proceeds were deposited in local banks and later withdrawn from bank branches in the Palm Bay, Florida area.
Morales-Hernandez (52, Palm Bay, FL) was sentenced to seven years and six months in federal prison. Carlos Alberto Cotto-Lopez, a.k.a. “Papito”, (25, Holyoke, MA) was sentenced to five years in federal prison. Paez (28, Kissimmee, FL) was sentenced to four years in federal prison. Heriberto Morales-Hernandez (45, Holyoke, MA) was sentenced to three years and six months in federal prison. Jose Manuel Garcia-Santiago, a.k.a. “Cenizo”, (29, Holyoke, MA) was sentenced to three years and two months in federal prison. Isaac Matta-Robles (55, Miami, FL) was sentenced to two years and ten months in federal prison. Edwin Miguel Negron (27, Holyoke, MA) was sentenced to two years and six months in federal prison. Jose Antonio Ortiz-Gonzalez, a.k.a. “Chelo”, (50, Puerto Rico) and Juan Luis Collazo-Pinto, a.k.a. “Pacho”, (29, Holyoke, MA) were each sentenced to two years in federal prison. Rafael Rivera, a.k.a. “Chapo,” (39, Palm Bay) remains a fugitive.
This case was investigated by the Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation, the U.S. Postal Service, and the Palm Bay Police Department. It was prosecuted by Assistant United States Attorney David Haas.
New York Man Sentenced to 10 Years on Cocaine ChargeRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs Specialist
ELKINS, WEST VIRGINIA – A man from New York was sentenced to ten years in federal prison on a cocaine trafficking charge.
Melvin SANDERS, age 56, formerly of New York, was sentenced to 120 months in prison and three years of supervised release for “Possession with Intent to Distribute Cocaine.” SANDERS was remanded to the custody of the United States Marshal.
Nine others appeared in Elkins Federal court, including Chad Edward CUTRIGHT, age 29, of Montrose, West Virginia, who was sentenced to 60 months in prison and three years of supervised release for “Possession of Pseudoephedrine to be used in the Manufacture of Methamphetamine.”
James Allen WARE, age 30, of Buckhannon, West Virginia, was sentenced to 57 months in prison and three years of supervised release for “Possession of Materials used in the Manufacture of Methamphetamine.” WARE, who is free on bond, will self-report to prison.
Joshua David CASADA, age 29, of Buckhannon, West Virginia, was sentenced to 51 months in prison and three years of supervised release for “Possession of Pseudoephedrine to be used in the Manufacture of Methamphetamine.” CASADA was remanded to the custody of the United States Marshal.
Kristin Elaine DYE, age 21, of Buckhannon; Lindsey Parker ROY, age 40, of Elkins, West Virginia; and, Destry Seth POLING, age 27, of Parsons, West Virginia; were sentenced to five years of probation for “Possession of Pseudoephedrine to be used in the Manufacture of Methamphetamine.”Gary Rudolph LOY, age 41, of Belington, West Virginia, was sentenced to five years of probation for “Manufacture of Methamphetamine.”
Cinda Lou CHAPMAN, age 34, of Maysville, West Virginia, was sentenced to three years of probation for “Theft of Government Money.”
Robert Franklin DAVIS, II, age 35, of Buckhannon, entered a plea of guilty to Possession of Materials used in the Manufacture of Methamphetamine. DAVIS, who is free on bond pending sentencing, faces up to 10 years in prison.
These cases were prosecuted by Assistant U.S. Attorneys Andrew R. Cogar, Stephen D. Warner, David J. Perri, Stephen L. Vogrin and Jarod J. Douglas and investigated by the Greater Harrison County Drug & Violent Crime Task Force, the Barbour County Sheriff’s Department, the West Virginia State Police, the U.S. Forest Service, the Elkins Police Department, the Randolph County Sheriff’s Department and the Tucker County Sheriff’s Dept.
Chief U.S. District Judge John Preston Bailey presided.New Haven Man Admits Role in Check Fraud RingRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BRANDON KEY BENTLEY, 31, of New Haven, pleaded guilty today before U.S. Magistrate Judge Thomas P. Smith in Hartford to one count of conspiracy to commit bank fraud.
According to court documents and statements made in court, between July 2010 and May 2011, BENTLEY and two other individuals obtained stolen checks, recruited “runners” who cashed the checks, and altered the checks to list the runners as the lawful payees. The three individuals drove the runners to several Connecticut bank branches and directed them to enter the banks and cash the checks. The runners were paid a small part of the cash proceeds. Through this scheme, 39 checks totaling $114,102.34 were altered and presented to banks, and 37 of those checks totaling $104,070.94 were cashed by the banks.
BENTLEY is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on November 26, 2014, at which time he faces a maximum term of imprisonment of 30 years and a fine of up to $1 million.
This matter is being investigated by the United States Postal Inspection Service, along with the Connecticut Financial Fraud Task Force and the Branford Police Department, Madison Police Department, Middlebury Police Department, Milford Police Department, New Britain Police Department, New Haven Police Department, New Milford Police Department, North Branford Police Department, Waterbury Police Department, Woodbridge Police Department, and Southbury Police Department. The case is being prosecuted by Assistant U.S. Attorney Henry K. KopelPUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Monroe County Man Pleads Guilty to Crack Cocaine TraffickingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 34-year-old Stroudsburg area man pleaded guilty today before U.S. District Court Judge Robert D. Mariani to distributing crack cocaine.
According to United States Attorney Peter Smith, the defendant, Jose Hernandez-Tirado, admitted to distributing and possessing with intent to distribute crack in Monroe County during 2013.
Hernandez-Tirado was charged in a Superseding Information filed in August 2014. The charge resulted from an investigation by the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Pennsylvania State Police, and Berks County Detectives.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Hernandez-Tirado faces a potential maximum sentence of 20 years in prison and a $1 million fine. Sentencing was scheduled for November 2014.
Maryland Men Convicted on Drug ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Eight people entered guilty pleas to Federal drug charges in Martinsburg.
United States Attorney William J. Ihlenfeld, II, announced that Alan BUTLER, age 57, and Delano Alan BUTLER, age 33, of Hagerstown, Maryland, entered pleas of guilty to “Distribution of Heroin.” Alan BUTLER and Delano BUTLER each face up to 20 years in prison.
Patrice Dominique STEPHENS, age 34, of Westernport, Maryland, entered a plea of guilty to “Distribution of Cocaine.” STEPHENS, who is in custody pending sentencing, faces up to 20 years in prison.
Walter EVANS, age 43, of Martinsburg, entered a plea of guilty to “Possession with Intent to Distribute Crack Cocaine.” EVANS, who is free on bond pending sentencing, faces up to 20 years in prison.
Bradley FRENCH, age 45 and Shawna PERRY, age 18, of Hedgesville, West Virginia, entered pleas of guilty to “Distribution of Heroin.” Co-defendant Theresa PERRY, age 45, of Hedgesville, entered a plea of guilty to “Maintaining a Drug-Involved Premise.” FRENCH and Shawna PERRY, and Theresa PERRY each face up to 20 years in prison.
Dennis Dwayne BUTTS, II, age 38, of Hedgesville, entered a plea of to “Distribution of Heroin.” BUTTS, who is in custody pending sentencing, faces up to 20 years in prison.
In other matters, Jeff CHANEY, age 36, of Burlington, West Virginia, entered a plea of guilty to “Sale of a Firearm to a Felon.” CHANEY, who is free on bond pending sentencing, faces up to 10 years in prison.
Brenda Kaye STAMPER, age 46, of Martinsburg, entered a plea of guilty to “Theft of Government Money” was ordered to pay restitution in the amount of $15,312. STAMPER, who is free on bond pending sentencing, faces up to 10 years in prison.
Harold Quiceno RODRIGUEZ, age 36, a citizen of Colombia, entered a plea of guilty to “False Claim to U.S. Citizenship.” RODRIGUEZ, who is in custody pending sentencing, faces up to three years in prison and deportation.
These cases were prosecuted by Assistant U.S. Attorneys Paul T. Camilletti and Jarod J. Douglas and were investigated by the Eastern Panhandle Drug & Violent Crime Task Force; the Potomac Highlands Drug & Violent Crime Task Force; the Martinsburg Police Department; Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms & Explosives; Hampshire County Sheriff’s Office; Social Security Administration; U.S. Postal Inspection Service; and, US Immigration and Customs Enforcement, Homeland Security Investigations (ICE/HIS).
U.S. Magistrate Judge Robert W. Trumble presided.Marin Doctor Indicted for Distributing Controlled Substances Outside the Usual Course of Professional PracticeRead the Press Release
OAKLAND – On Sept. 4, 2014, a federal grand jury indicted Doctor Michael Roger Chiarottino, with fourteen counts of distributing Schedule II controlled substances, and one count of distributing a Schedule III controlled substance outside the usual course of professional practice and without a legitimate medical purpose, announced United States Attorney Melinda Haag and Drug Enforcement Administration Special Agent in Charge Jay Fitzpatrick.
The Indictment against Chiarottino was unsealed at his initial appearance this morning in United States District Court in Oakland.
According to the indictment, Chiarottino, 66, of Corte Madera, is alleged to have improperly prescribed controlled substances including oxycodone, hydrocodone, oxymorphone, hydromorphone, and methadone.
Chiarottino was arrested on Sept. 8, 2014, made his initial appearance in federal court today, and was released on $75,000 bail. Chiarottino's next scheduled appearance is at on Sept. 15, 2014, at 9:30 a.m. for a bail review hearing before the Honorable Donna M. Ryu, United States Magistrate Judge.
The maximum statutory penalty for each count of distributing a Schedule II controlled substance, in violation of 21 U.S.C. §§ 841(a)(1), (b)(1)(C), is 20 years imprisonment, a fine of $1,000,000, a lifetime of supervised release, a mandatory minimum three years of supervised release, and a $100 special assessment. The maximum statutory penalty for the count of distributing a Schedule III controlled substance, in violation of 21 U.S.C. §§ 841(a)(1), (b)(1)(E)(i), (iii), is 10 years imprisonment, a fine of $500,000, a lifetime of supervised release, a mandatory minimum two years of supervised release, and a $100 special assessment. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Garth Hire is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Melissa Dorton. The prosecution is the result of an investigation by the Drug Enforcement Administration, Livermore Police Department, Pleasanton Police Department, Marin County Narcotics Task Force, and the Medical Board of California. This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Please note, an indictment contains only allegations and, as with all defendants, Michael Roger Chiarottino must be presumed innocent unless and until proven guilty.
(Chiarottino indictment )
Manhattan U.S. Attorney Announces Charges in Manhattan Federal Court Against Former Physician’s Assistant for Minor League Hockey Team and Former Player for Team Relating to the Distribution of OxycodoneRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James J. Hunt, the Acting Special Agent-in-Charge of the New York Field Division of the U.S. Drug Enforcement Administration (DEA), and William J. Bratton, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of an Indictment
charging JORDAN HART, a former player for a minor league hockey team (“Team-1”), and OSCAR JOHNSON, a physician’s assistant who formerly provided medical services to Team-1, with various offenses principally relating to the distribution of oxycodone. As alleged, JOHNSON wrote medically unnecessary Percocet prescriptions for HART on a monthly basis from June 2009 through July 2011, despite never once conducting any treatment or diagnosis of HART for any injuries or illnesses over that time period. From at least December 2010 through April 2011, HART sold at least some of the oxycodone he obtained from JOHNSON’s prescriptions to Derek Boogaard, who was a professional hockey player for an NHL team in New York, New York (“Team-2”), and who suffered from an addiction to prescription painkillers and Ambien. On May 13, 2011, two weeks after last purchasing oxycodone from HART in New York, Boogaard died of an overdose of oxycodone and alcohol in Minneapolis, Minnesota.
HART and JOHNSON were arrested this morning. HART will be presented in Manhattan federal court before U.S. Magistrate Judge Michael H. Dolinger later this afternoon. JOHNSON will be presented in federal court in Salt Lake City, Utah, later this afternoon. The case has been assigned to U.S. District Judge Naomi Reice Buchwald.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, for more than two years, Oscar Johnson casually provided Percocet prescriptions to a former minor league hockey player without once treating or examining that player during that period. The minor league player, Jordan Hart, then filled those prescriptions and sold the corresponding drugs to Derek Boogaard, an NHL player, feeding Boogaard’s growing, debilitating addiction. Ultimately, that addiction, fueled at least in part by the drugs that Johnson illegally prescribed, and Hart peddled for cash, culminated in Boogaard’s tragic overdose death. We have seen far too many tragedies from prescription drug overdoses. This Office will continue to warn people of the dangers of prescription drug abuse and investigate and prosecute those who illegally deal in pain medications wherever we find them. And finally, the sports world is not exempt from federal narcotics law and should not expect to be.”
DEA Acting Special Agent in Charge James J. Hunt said: “Like a sad story of lost potential, Derek Boogaard fell victim to prescription drug addiction ending in the most tragic consequence – a fatal overdose. His death in Minneapolis led law enforcement on a trail to Long Island and Utah that identified two people who allegedly supplied him diverted oxycodone, Jordan Hart and Oscar Johnson. Let this be another warning to the athletes across America about the fatal dangers of prescription drug abuse and a warning to those who distribute diverted prescription medication throughout our communities – law enforcement will track you down.” Acting SAC Hunt would like to extend his condolences to the Boogaard family for their loss.
NYPD Commissioner William J. Bratton said: “The NYPD will continue to work with our law enforcement partners to stop the illegal drug trade in any form of distribution. Thanks to the investigators and prosecutors involved in this case, this illegal supply of prescription narcotics was shut down before it could destroy another life.”
According to the allegations contained in the Indictment unsealed today in Manhattan federal court:
Oxycodone is a prescription narcotic-strength opioid used to treat severe and chronic pain conditions. Oxycodone is typically dispensed in five to 30 milligram tablets to patients suffering from conditions such as post-operative pain, severe back and orthopedic injuries, as well as pain associated with certain forms of cancer treatments and terminal illnesses. Oxycodone is a highly addictive opioid which, along with other controlled substance prescription medications, is abused by almost seven million Americans, resulting in more deaths from prescription drug overdoses than auto accidents. Because of its extremely addictive properties, oxycodone is heavily regulated, and should be prescribed with care. Indeed, the standard of care for properly prescribing oxycodone and other opioids requires monthly to quarterly in-person evaluation of a patient, including a full discussion of the degree of pain relief the patient is obtaining, the degree of improvement from the medication, an assessment of side effects, scrutiny for aberrant behavior, physical examination, compliance monitoring, and the development and implementation of a treatment plan utilizing all possible alternatives.
JOHNSON was a physician’s assistant for a medical services group in Utah (the “Medical Group”) that provided contract medical services to Team-1, which played in the East Coast Hockey League (“ECHL”). JOHNSON worked for the Medical Group between 2007 and July 2011, and was the primary medical liaison to Team-1 during that time. As a physician’s assistant, JOHNSON, under the supervision of a physician or surgeon, was able to diagnose and treat illnesses, and prescribe medications including oxycodone.
HART played for Team-1 during the 2007-2008 and 2008-2009 ECHL seasons. During those two seasons, JOHNSON did not regularly prescribe oxycodone for HART. Indeed, JOHNSON wrote HART a total of four prescriptions for medications containing oxycodone during HART’s entire tenure with Team-1. However, after the 2008-2009 ECHL season ended in April 2009, and after HART had stopped playing for Team-1 and retired from the ECHL, JOHNSON began a practice of writing oxycodone prescriptions for HART approximately every month. The prescriptions began in June 2009 and continued until July 2011 – the last month JOHNSON worked for the Medical Group. In total, between June 2009 and July 2011 JOHNSON wrote HART 26 prescriptions for Percocet, which contains oxycodone, for a total of 2,920 pills.
JOHNSON did not conduct any in-person treatment or examination of HART prior to writing any of the 26 prescriptions issued between June 2009 and July 2011. Instead, JOHNSON simply signed the prescriptions and provided them to a medical assistant to mail to HART in New York, where all 26 of the prescriptions were filled. When questioned, JOHNSON told the medical assistant that HART had shoulder pain and was looking for a doctor in New York. JOHNSON continued to write prescriptions for HART without any treatment or examination for 26 months.
HART, in turn, began selling the Percocet he obtained from prescriptions written by JOHNSON beginning in at least December 2010. HART sold some or all of the painkillers to Derek Boogaard, a professional hockey player for Team-2, an NHL team in New York, New York. Boogaard, who had previously played for a professional hockey team in Minneapolis, Minnesota, had a documented history of addiction to prescription painkillers and Ambien. In December 2010, Boogaard suffered a severe concussion after an on-ice fight during a game, and never played again. Boogaard subsequently suffered severe migraines and began spending most of his time in his New York apartment with the lights off, abusing oxycodone and Ambien. At least some of the oxycodone was purchased from HART, to whom Boogaard had been introduced by a teammate. Boogaard regularly traveled to Huntington, New York, where HART lived, to purchase the pills.
In April 2011, Boogaard was sent to a rehabilitation facility in California to deal with his addiction to painkillers. Boogaard was given permission to leave the facility in late April 2011 to travel to New York and then Minneapolis. When Boogaard arrived in New York on April 29, 2011, he met with HART and wrote HART a $4,000 check to buy prescription drugs. Boogaard then traveled to Minneapolis and met his brother. While unpacking his belongings from the trip to New York, Boogaard provided a bag of prescription drugs to his brother for safekeeping, before ultimately returning to the rehabilitation facility in California.
On May 12, 2011, during another reprieve from the rehabilitation facility, Boogaard consumed one of the painkillers he had brought from New York to Minneapolis two weeks earlier. After a late night of drinking with friends at bars in downtown Minneapolis, Boogaard went to sleep during the early morning hours of May 13, 2011. He was found dead later that day. Boogaard’s cause of death was determined to be a mixed oxycodone and alcohol toxicity.
HART, 31, of Huntington, New York, is charged with one count of conspiracy to distribute and possess with intent to distribute oxycodone, which carries a maximum sentence of 20 years in prison. JOHNSON, 59, of Salt Lake City, Utah, is charged with 26 counts of distributing and possessing with intent to distribute oxycodone, each of which carries a maximum sentence of 20 years in prison, and one count of making a false statement, which carries a maximum sentence of five years in prison. The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes, as any sentencing of the defendants would be determined by the judge.
Mr. Bharara thanked the DEA Tactical Diversion Squad New York (TDS-NY) comprising agents and officers from the DEA, the New York City Police Department, the Town of Orangetown Police Department, and the Westchester County Police Department, as well as the Drug Enforcement Administration Field Offices in Minneapolis, Minnesota, and Salt Lake City, Utah, and the Minneapolis Police Department for their work in the investigation, which he noted is ongoing.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorneys Russell Capone and Jessica Lonergan are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Jordan Hart and Oscar Johnson Indictment
Man Who Managed Chinese Restaurant Pleads Guilty to Harboring Foreign WorkersRead the Press Release
KANSAS CITY, KAN. - A man who managed a Chinese restaurant in Kansas City, Mo., pleaded guilty Tuesday to conspiring to harbor workers who were in the United States illegally, U.S. Attorney Barry Grissom said.
Quan Liu, 26, Kansas City, Mo., pleaded guilty to one count of conspiracy to harbor aliens who were unlawfully in the United States. In his plea, he admitted the crime occurred while he was the manager of Wei’s Super Buffet #2 at 7531 Wornall Road in Kansas City, Mo. The restaurant was owned by a company based in Olathe, Kan., which was headed by co-defendant Wei Liu.
When investigators served a search warrant at a three-bedroom apartment that Quan Liu leased near the restaurant they found six illegal aliens residing there. One had overstayed a B-2 visa, one previously had been deported, one previously had been found unlawfully in the United States and had returned to his country voluntarily, and three others were illegally present in the United States.
Co-defendants include: Wei Liu, who is awaiting trial.
Xiang Liu, who is awaiting trial
Jin Hui Liu, who is set for a change of plea hearing Sept. 12.
Huiming Liu, who is awaiting sentencing.
Bin Liu, who is awaiting trial.
Huiqing Liu, who is awaiting trial.Quan Liu will be set for a later date. He faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. Grissom commended the Department of Homeland Security (DHS), Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) and Assistant U.S. Attorney Scott Rask for their work on the case.
Macomb Township Woman Pleads Guilty to Aiding the Filing of A False Tax ReturnRead the Press Release
A Macomb Township woman pleaded guilty today to one count of willfully aiding the preparation and filing of a false and fraudulent tax return, United States Attorney Barbara L. McQuade announced.
McQuade was joined in the announcement by Jarod Koopman, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation.
Entering the guilty plea before United States District Judge Paul D. Borman was Jennifer Lee Moriarty, 44. According to court records, Moriarty owned and operated Gold Party’s 101, LLC. Gold Party’s 101 purchased gold and other metals from individuals attending gold parties and then resold the purchased metals to a refinery. The information presented to the court at the time of the plea showed that Moriarty failed to provide her return preparer with a truthful accounting of the income earned by Gold Party’s 101 in 2008, some $425,000, causing her business income to be substantially understated.
Under her plea agreement, Moriarty is being held responsible for failing to report $1.8 million in income received by her business in 2008, 2009, and 2010. The tax loss to the federal government was $122,000
“Moriarty’s attempt to reduce her tax liability by intentionally hiding income from her return preparer and causing the filing of false returns is a criminal act and is unfair to honest taxpayers who file correct returns each year. Filing a false tax return is a felony offense that carries severe consequences,” said Acting Special Agent in Charge Jarod Koopman.
Aiding in the filing of false tax returns carries a maximum penalty of three years’ imprisonment, a fine of $100,000, and an order of restitution. Sentencing is scheduled for December 1, 2014 before Judge Borman.
The case was investigated by special agents of the IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Stephen HiyamaLong Island Resident Sentenced to 78 Months in Prison for Using Stolen Social Security Numbers to File Thousands of False Tax ReturnsRead the Press Release
Earlier today, Michael Figat was sentenced to 78 months’ imprisonment by United States District Judge Sandra J. Feuerstein in District Court in Central Islip, New York, for participating in a scheme to defraud the United States. As part of that sentence, the court also sentenced Figat to 3 years of supervised release and ordered him to forfeit $250,000. Restitution remains to be determined.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Shantelle P. Kitchen, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation (IRS), New York; Farrell Dolan, Resident Agent-in-Charge, United States Secret Service (USSS), Long Island Resident Office; Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service (USPIS), New York Division; and Rafael Medina, Special Agent-in-Charge, USPIS, Office of Inspector General (USPIS OIG), Northeast Area Field Office.
“Figat and his coconspirators stole the personal information of thousands of unsuspecting Puerto Rican citizens to enrich themselves at the expense of the United States and the tax-paying public,” stated United States Attorney Lynch. “We are committed to prosecuting those who take advantage of the federal tax system for personal profit. I want to commend my law enforcement partners for their outstanding efforts in leading this investigation.”
Natural born residents of the Commonwealth of Puerto Rico are, upon birth, automatically granted United States citizenship and are issued United States Social Security numbers upon application. Figat exploited tax laws that exempt Puerto Rican citizens from filing federal income tax returns provided they derive their incomes solely from sources within Puerto Rico. The defendant and his coconspirators illegally obtained identification information for Puerto Rican citizens, including names, dates of birth, and social security numbers. Then, between January 2011 and April 2012, they used that information to file thousands of fraudulent tax returns and obtained more than $16,000,000 in United States Treasury refund checks. As part of the scheme, Figat and his coconspirators bribed Postal Service employees to intercept tax refund checks from the mail. They also removed tax refund checks from the addressees’ mail boxes. Many of the checks in this scheme were sent to addresses in Shirley, Patchogue, Lindenhurst, and West Babylon, New York. The schemes were uncovered, in part, by a law enforcement officer working in an undercover capacity.
Today’s announcement is part of an on-going effort by the Identity Theft Task Force (ITTF), which the IRS created in mid-2012, to address the growing issue of identity theft in New York. The ITTF combines the resources of several agencies to investigate identity theft,including investigating the use of stolen identities to file fraudulent tax returns. The agencies currently participating in the ITTF include the IRS; the Federal Bureau of Investigation; USSS; USPIS; New York City Police Department; Bureau of Diplomatic Security, Department of State; Federal Deposit Insurance Corporation, Office of Inspector General; Federal Reserve Board, Office of Inspector General; USPIS OIG; Homeland Security Investigations, Immigration and Customs Enforcement; Social Security Administration, Office of Inspector General; Treasury Inspector General for Tax Administration, Department of Treasury, Office of Inspector General; and Department of Labor, Office of Inspector General.
The government’s case was prosecuted by Assistant United States Attorney
Christopher Caffarone.
The Defendant:
MICHAEL FIGAT
Age: 36
Shirley, New York
Long Island Man Pleads Guilty to Attempting to Join Al-Qaeda in the Arabian Peninsula and Obstruction of JusticeRead the Press Release
Earlier today at the federal courthouse in Central Islip, New York, Marcos Alonso Zea, also known as “Ali Zea,” an American citizen and resident of Brentwood, New York, pled guilty to attempting to provide material support to al-Qaeda in the Arabian Peninsula, also known as Ansar al-Sharia (collectively “AQAP”), and obstruction of justice.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; John Carlin, Assistant Attorney General, National Security Division; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; and William J. Bratton, Commissioner, New York City Police Department (NYPD).
As set forth in the indictment and other court filings, beginning in the fall of 2011, Zea planned to travel overseas in order to wage violent jihad against the perceived enemies of Islam, which included the government of Yemen and its allies. In furtherance of his plot, on January 4, 2012, Zea boarded a flight at John F. Kennedy Airport (“JFK”) in Queens, New York to London, England, en route to Yemen. Zea was not permitted to transit onward from London, however, and was returned to the United States by British authorities. Zea was interviewed and closely surveilled by investigators following his return. Despite being prevented from traveling to Yemen, Zea continued to plot, including by encouraging and supporting his co-conspirator, Justin Kaliebe, who also was planning to travel to fight jihad. In January 2013, Kaliebe was arrested at JFK while attempting to travel to Yemen to join AQAP. Months later, after learning that he too was under investigation, Zea caused electronic media on his computer to be destroyed in an effort to obstruct the investigation. Despite his efforts, a forensic examination of Zea’s electronic media subsequently conducted by investigators revealed an assortment of violent Islamic extremist materials, including issues of Inspire magazine, part of AQAP’s English-language media operations.
“American citizens who offer support to terrorist organizations pose a grave threat to our national security and the security of our allies around the world,” stated U.S. Attorney Lynch. “In this case, the defendant not only attempted to join al-Qaeda in the Arabian Peninsula, but also tried to thwart an investigation by destroying evidence. We will continue our relentless efforts against terrorists, whether they hail from overseas or from our own homeland.” Ms. Lynch expressed her grateful appreciation to the Immigration and Customs Enforcement/Homeland Security Investigations (HSI), the New York City Police Department, the Nassau County Police Department, the Suffolk County Police Department, the New York State Police, and the Port Authority of New York & New Jersey Police Department for their work on the investigation.
“One of our highest priorities is to protect our nation by identifying, disrupting, and holding accountable those who provide or attempt to provide material support to foreign terrorist organizations,” said Assistant Attorney General for National Security Carlin. “This case serves unambiguous notice that attempting to travel abroad to engage in such conduct has significant consequences.”
FBI Assistant Director-in-Charge Venizelos stated, “As we are far too familiar, Zea attempted to travel to Yemen in support of a radical terrorist agenda. When he couldn’t get there to join al-Qaeda, he went to work recruiting others to go in his stead. And when Zea learned he was under investigation he made every attempt to destroy the incriminating evidence.”
“The Marcos Zea investigation is another clear example of those who are willing to travel overseas to follow al-Qaeda's narrative of violence," said Police Commissioner William J. Bratton. “This case is another example of the close cooperation between the NYPD's Intelligence Bureau and the FBI's JTTF to uncover these individuals and stop them before they pose a threat to US interests overseas, or at home when they return.”
Zea is scheduled to be sentenced by United States District Judge Sandra J. Feuerstein on January 14, 2015. He faces a sentence of up to 25 years in prison.
The government’s case is being prosecuted by Assistant United States Attorneys Seth D. DuCharme, John J. Durham, and Michael P. Canty, with assistance provided by Trial Attorney Kelli Andrews of the Counterterrorism Section of the Department of Justice.
The Defendant:
MARCOS ALONSO ZEA (a/k/a “Ali Zea”)
Age: 26
Brentwood, New York
Lincoln Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
On September 9, 2014, Stacy Lynn Henry, age 40 of Lincoln, was sentenced to 10 years and 10 months (130 months) in prison for conspiracy to distribute and possess with the intent to distribute 500 grams or more of a mixture or substance containing methamphetamine between January of 2012 and October of 2013. Information provided to law enforcement indicated that Henry was responsible for the distribution of at more than 500 grams (approximately 18 ounces) of methamphetamine in the Lincoln area during that time-frame.
Following the prison term, Henry will serve five years on supervised release.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
KC Man Sentenced to 15 Years for Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for possessing and attempting to distribute child pornography.
David Wayne Scott, Jr., 28, of Kansas City, was sentenced by U.S. Chief District Judge Greg Kays to 15 years in federal prison without parole.
On Feb. 7, 2014, Scott pleaded guilty to attempting to distribute child pornography over the Internet and to possessing child pornography. Scott admitted that he possessed child pornography on his computers, which he shared over the Internet through a peer-to-peer file-sharing program.
Scott was identified by three separate investigations, two originating in Florida and another in New York, as sharing child pornography over the Internet. Those investigators, working independently, identified movies and images of child pornography that Scott made available to others to download over the Internet.
Law enforcement officers executed a search warrant at Scott’s residence and seized four computers and four loose hard drives. A forensic examination found approximately 208 video files and 1,547 images of child pornography.
According to court documents, Scott admitted that he had been viewing child pornography for four to five years and had been sharing child pornography online for three years. Some of the child pornography images depicted victims who were younger than four years old, including infants. Scott shared as many as 290 child pornography files and averaged 20 to 30 file-sharing friends when he shared child pornography online. Some of those friends told him that they were actively engaged in sexual abuse of children. Scott watched minors engage in sexually explicit conduct via a webcam.
Scott must also pay restitution to four identified victims who have petitioned the court for restitution from every person who received or possesses images of their sexual abuse. He must also forfeit his computers and hard drives to the government.
This case was prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the Western Missouri Cyber Crimes Task Force, the FBI, the Boynton Beach, Fla., Police Department and the Brevard County, Fla., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Jose Padilla Re-Sentenced to 21 Years in Prison for Conspiracy to Murder Individuals Overseas, Providing Material Support to TerroristsRead the Press Release
John P. Carlin, Assistant Attorney General for National Security and Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, announced today that U.S. District Judge Marcia Cooke re-sentenced Jose Padilla to serve 21 years in prison for his 2007 conviction for conspiracy to murder, kidnap and maim individuals in a foreign country; conspiracy to provide material support to terrorists; and providing material support to terrorists.
The U.S. Eleventh Circuit Court of Appeals had remanded the case after upholding the convictions but vacating the original sentence of 17 and-a-half years as too lenient. Padilla faced a sentence under the U.S. Sentencing Guidelines of 360 months to life in prison.
U.S. Attorney Ferrer commended the investigative efforts of the Federal Bureau of Investigation, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations section. The re-sentencing of this case was handled by Assistant U.S. Attorneys Brian Frazier and Ricardo Del Toro of the Southern District of Florida and Department of Justice National Security Division Trial Attorney Bridget Behling.”
Jose Padilla Re-Sentenced to 21 Years in Prison for Conspiracy to Murder Individuals Overseas, Providing Material Support to TerroristsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and John P. Carlin, Assistant Attorney General for National Security, announce today that U.S. District Judge Marcia Cooke re-sentenced Jose Padilla to serve 21 years in prison for his 2007 conviction for conspiracy to murder, kidnap and maim individuals in a foreign country; conspiracy to provide material support to terrorists; and providing material support to terrorists.
The U.S. Eleventh Circuit Court of Appeals had remanded the case after upholding the convictions but vacating the original sentence of 17 and one-half years as too lenient. Padilla faced a sentence under the U.S. Sentencing Guidelines of 360 months to life in prison.
U.S. Attorney Ferrer commended the investigative efforts of the Federal Bureau of Investigation, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations section. The re-sentencing of this case was handled by Assistant U.S. Attorneys Brian Frazier and Ricardo Del Toro of the Southern District of Florida and Department of Justice National Security Division Trial Attorney Bridget Behling.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Johnstown Women Charged with Possessing Counterfeit Checks, CardsRead the Press Release
JOHNSTOWN, Pa. - Two residents of Johnstown, Pa., have been indicted by a federal grand jury in Johnstown on charges of possessing counterfeit or unauthorized access devices and possession of device-making equipment, United States Attorney David J. Hickton announced today.
The two-count indictment named Terretha Lynn Haga, 43, and Kristina Joanna Barney, 32.
According to the indictment presented to the court, on Oct. 22, 2010, Haga and Barney possessed counterfeit or unauthorized access devices, which included approximately 132 counterfeited identification cards, 73 counterfeited checks, 55 unauthorized gift cards, and 18 counterfeited credit cards. In addition to possessing these counterfeit or unauthorized access devises, Haga and Barney also possessed device-making equipment, specifically Check Designer, Print Shop 2.0, check stock paper, and tools to modify checks and credit cards. Their possession of this equipment was designed primarily to produce counterfeit checks and credit cards.
The law provides for a maximum total sentence of 25 years in prison, a fine of 500,000, or both, for each defendant. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The United States Secret Service and the Laurel Highlands Resident Agency of the Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Hartford Man Sentenced to More Than 8 Years in Federal Prison for Trafficking HeroinRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANTONIO SANCHEZ, also known as “Cano,” 41, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 100 months of imprisonment, followed by five years of supervised release, for his role in a Hartford-based narcotics trafficking ring.
According to court documents and statements made in court, this matter stems from a joint law enforcement investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department into gang-related narcotics trafficking in Hartford’s South End. The investigation specifically targeted a heroin and cocaine trafficking organization headed by Angel Rosa, also known as “Little” and “Daddy,” and his cousin, Angel Rosa, also known as “Mo Betta” and “Fab.” Little supervised the drug trafficking ring, which included several other family members, through fear and intimidation. Mo Betta managed the daily operations of the organization, facilitated the delivery and transportation of large quantities of heroin, and supervised numerous drug sellers who distributed heroin and other narcotics in the Zion Street area. At times, Little and Mo Betta used, or threatened to use, violence to ensure the success of the organization.
SANCHEZ, who is Little’s stepbrother, sold heroin on a daily basis from 584 Zion Street.
As a result of this investigation, 21 individuals were charged with various federal offenses, and law enforcement officers seized narcotics, one firearm, approximately $230,000 in cash, eight vehicles and jewelry.
SANCHEZ has been detained since his arrest on April 11, 2013. On April 25, 2014, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin.
SANCHEZ’s criminal history includes numerous drug-related convictions.
Angel Rosa aka “Little” and Angel Rosa aka “Mo Betta” each pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin. On May 15, 2014, “Little” was sentenced to 235 months of imprisonment, and on April 29, 2014, “Mo Betta” was sentenced to 165 months of imprisonment.
This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Connecticut State Police, Hartford Police Department, East Hartford Police Department, Connecticut Department of Correction and Connecticut National Guard. The Connecticut State Police’s Emergency Services Unit, Hartford Police Department’s Emergency Response Team, Capital Region Emergency Response Team, Drug Enforcement Administration, Homeland Security Investigations and the New Britain, East Hartford, Wethersfield and Manchester Police Departments have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorneys Brian Leaming and Patrick Caruso.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Greek National Sentenced to Eight Years on Money Laundering ChargesRead the Press Release
BOSTON – A Greek man was sentenced in U.S. District Court in Boston today for his role in perpetrating a multi-million dollar scheme which defrauded developers of $7.9 million.
Evripides Georgiadis, 49, of Larisa, Greece, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to eight years and six months in prison and ordered to pay $8.4 million in restitution. In May 2014, following a three-week trial, Georgiadis was convicted of conspiracy to commit wire fraud, 11 counts of wire fraud, and conspiracy to commit money laundering.
Between 2007 and 2011, Georgiadis participated in a conspiracy to defraud developers who were seeking financing for large-scale alternative energy and commercial projects by pretending to be a representative of a multi-billion dollar fund located in Luxembourg. Georgiadis and his co-conspirators convinced developers to give deposits between $300,000 and $1 million to this fraudulent fund with the promise that the deposit would be fully refundable. Georgiadis and his co-conspirators spent and transferred the developers' deposit money out of the country, and the fraudulent fund never financed any projects. In perpetrating this scheme, Georgiadis helped create fake letters of credit and a phantom New Zealand bank, all to reassure developers about the safety of their deposits.
Over $7 million was stolen from victims, including $600,000 which had originally been provided by the West Springfield financial adviser Sean Mansfield. Mansfield, in turn, had stolen the funds from his clients. In 2011, Mansfield was sentenced to 60 months in prison for defrauding his clients.
Georgiadis’s co-defendants, John Condo, Frank Barecich, and Michael Zanetti, have all been convicted. In July 2014, Condo and Barecich were sentenced to 90 months and 12 months in prison, respectively. Zanetti was sentenced to 37 months in prison.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Susan Hensley, Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Alex J. Grant and Karen L. Goodwin of Ortiz’s Springfield Branch Office.
Granite City Woman Peads Guilty to Controlled Substances by FraudRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that Abbe L. Terry, 49, of Granite City, Illinois, pled guilty to a three-count indictment charging that she obtained controlled substances by fraud and forgery. Sentencing has been set for January 12, 2015, at 2:00 p.m., in United States District Court in East St. Louis, Illinois. Terry will face up to 4 years in prison, a fine of up to $250,000, and up to 3 years of supervised release as to each count.
At her plea, Terry admitted that on May 10, 2013, October 13, 2013, and October 23, 2013, she had, through the use of fraud and forgery, obtained Duragesic Patches, referred to as Fentanyl, a Schedule II controlled substance. Terry admitted that she used forged prescriptions that she had made on a home computer to obtain the controlled substances that had not been lawfully prescribed to her. Terry obtained the substances from pharmacies in Alton, Illinois.
The investigation was conducted by the United States Drug Enforcement Administration Office of Diversion Control. The case is being prosecuted by Assistant United States Attorney Ranley R. Killian
Fourth Defendant Pleads Guilty to Assault Charge Arising out of Drive-By-Shooting of Acoma Pueblo HomeRead the Press Release
ALBUQUERQUE – Joseph Edward Lucero, 24, entered a guilty plea this morning to an assault charge arising out of the drive-by shooting of an Acoma Pueblo home in Dec. 2012. Lucero’s three co-defendants previously entered guilty pleas to crimes arising out of that drive-by-shooting.
Lucero, Preston Chino, 21, Cameron Joseph Kasero, 21, and Andrea Carrillo, 22, all members and residents of Laguna Pueblo, were indicted in July 2013 on assault and firearms charges. The indictment charged the four defendants with assaulting two men and a woman on Dec. 9, 2012, by discharging firearms at a residence located in Acoma Pueblo in Cibola County, N.M.
During today’s hearing, Lucero pled guilty to Count 1 of the indictment charging him with assault with a dangerous weapon. Lucero admitted obtaining a firearm from Chino and discharging the firearm multiple times at the residence while it was occupied by the victims. Under the terms of his plea agreement, Lucero will be sentenced to a prison term within the range of 72 to 96 months followed by a term of supervised release to be determined by the court.
Chino entered a guilty plea on Aug. 27, 2014, to an assault charge and admitted aiding Kasero and Lucero in assaulting the three victims by providing shotguns and ammunition to them. He also admitted driving his co-defendants to the victims’ Acoma Pueblo home where they discharged the shotguns multiple times in the direction of the residence. Under the terms of his plea agreement, Chino will be sentenced to 96 months in prison followed by a term of supervised release to be determined by the court.
Kasero and Carrillo entered guilty pleas on Sept. 2, 2014. Kasero admitted assaulting the victims discharging a shotgun at a residence while it was occupied by the victims. Under the terms of his plea agreement, Kasero will be sentenced to 96 months in prison followed by a term of supervised release to be determined by the court.
In entering her guilty plea, Carrillo admitted aiding the assault on the victims by providing her cohorts with directions to the residence with the understanding that they intended to commit an assault at that location. Carrillo faces a statutory maximum sentence of ten years in prison followed by a term of supervised release to be determined by the court.
The sentencing hearings in this case have yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI, the Laguna Agency of the BIA’s Office of Justice Services, the Acoma Pueblo Tribal Police and the Pueblo of Laguna Tribal Police Department. Assistant U.S. Attorney Kyle T. Nayback is prosecuting the case.
Four Indicted for Fraud Against Government Contracting ProgramsRead the Press Release
GREENEVILLE, Tenn. – A federal grand jury in Greeneville returned an indictment on Aug. 12, 2013, against Ricky Anthony Lanier, 47, and Katrina Reshina Lanier, 40, of LaGrange, N.C.; Latoya Montrevette Speight, 37, of Snow Hill, N.C.; and Emanuel Louis Hill, 47, of Louisville, Ky., for wire fraud, conspiracy to commit wire fraud, and major fraud against the United States.
These individuals appeared in court on Sept. 9, 2014 before U.S. Magistrate Judge Dennis Inman and pleaded not guilty. All were released on bond pending trial, which has been set for Nov. 18, 2014 in U.S. District Court, in Greeneville, Tennessee.
If convicted, they all face a term of 20 years in prison as to each wire fraud charge and up to 10 years in prison for the charges of major fraud against the United States. Additionally, they face fines of up to $250,000 and up to three years of supervised release as to each count. The indictment also seeks forfeitures of approximately $15 million as to the Laniers and Speight and approximately $5 million as to Hill.
Details of this conspiracy are included in the indictment on file with the U.S. District Court, which alleges that the Laniers, Speight, and Hill conspired from November 2005 to April 2013 to defraud the United States government through a scheme to fraudulently obtain federal contracts intended to be awarded to businesses lawfully participating in the Small Business Administration’s 8(a) Business Development program and the Department of Veterans Affairs’ Service-Disabled Veteran-Owned Small Business Concern program.
This indictment is the result of an investigation by Department of Veterans Affairs Office of Inspector General, Department of Interior Office of Inspector General, Small Business Administration Office of Inspector General, and United States Secret Service, with assistance from the National Park Service and General Services Administration Office of Inspector General. Assistant U.S. Attorneys Neil Smith and David Gunn will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Four Indicted for Fraud Against Government Contracting ProgramsRead the Press Release
GREENEVILLE, Tenn. – A federal grand jury in Greeneville returned an indictment on Aug. 12, 2013, against Ricky Anthony Lanier, 47, and Katrina Reshina Lanier, 40, of LaGrange, N.C.; Latoya Montrevette Speight, 37, of Snow Hill, N.C.; and Emanuel Louis Hill, 47, of Louisville, Ky., for wire fraud, conspiracy to commit wire fraud, and major fraud against the United States.
These individuals appeared in court on Sept. 9, 2014 before U.S. Magistrate Judge Dennis Inman and pleaded not guilty. All were released on bond pending trial, which has been set for Nov. 18, 2014 in U.S. District Court, in Greeneville, Tennessee.
If convicted, they all face a term of 20 years in prison as to each wire fraud charge and up to 10 years in prison for the charges of major fraud against the United States. Additionally, they face fines of up to $250,000 and up to three years of supervised release as to each count. The indictment also seeks forfeitures of approximately $15 million as to the Laniers and Speight and approximately $5 million as to Hill.
Details of this conspiracy are included in the indictment on file with the U.S. District Court, which alleges that the Laniers, Speight, and Hill conspired from November 2005 to April 2013 to defraud the United States government through a scheme to fraudulently obtain federal contracts intended to be awarded to businesses lawfully participating in the Small Business Administration’s 8(a) Business Development program and the Department of Veterans Affairs’ Service-Disabled Veteran-Owned Small Business Concern program.
This indictment is the result of an investigation by Department of Veterans Affairs Office of Inspector General, Department of Interior Office of Inspector General, Small Business Administration Office of Inspector General, and United States Secret Service, with assistance from the National Park Service and General Services Administration Office of Inspector General. Assistant U.S. Attorneys Neil Smith and David Gunn will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Four Indicted for Fraud Against Government Contracting ProgramsRead the Press Release
GREENEVILLE, Tenn. – A federal grand jury in Greeneville returned an indictment on Aug. 12, 2013, against Ricky Anthony Lanier, 47, and Katrina Reshina Lanier, 40, of LaGrange, N.C.; Latoya Montrevette Speight, 37, of Snow Hill, N.C.; and Emanuel Louis Hill, 47, of Louisville, Ky., for wire fraud, conspiracy to commit wire fraud, and major fraud against the United States.
These individuals appeared in court on Sept. 9, 2014 before U.S. Magistrate Judge Dennis Inman and pleaded not guilty. All were released on bond pending trial, which has been set for Nov. 18, 2014 in U.S. District Court, in Greeneville, Tennessee.
If convicted, they all face a term of 20 years in prison as to each wire fraud charge and up to 10 years in prison for the charges of major fraud against the United States. Additionally, they face fines of up to $250,000 and up to three years of supervised release as to each count. The indictment also seeks forfeitures of approximately $15 million as to the Laniers and Speight and approximately $5 million as to Hill.
Details of this conspiracy are included in the indictment on file with the U.S. District Court, which alleges that the Laniers, Speight, and Hill conspired from November 2005 to April 2013 to defraud the United States government through a scheme to fraudulently obtain federal contracts intended to be awarded to businesses lawfully participating in the Small Business Administration’s 8(a) Business Development program and the Department of Veterans Affairs’ Service-Disabled Veteran-Owned Small Business Concern program.
This indictment is the result of an investigation by Department of Veterans Affairs Office of Inspector General, Department of Interior Office of Inspector General, Small Business Administration Office of Inspector General, and United States Secret Service, with assistance from the National Park Service and General Services Administration Office of Inspector General. Assistant U.S. Attorneys Neil Smith and David Gunn will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Former TierOne Bank Executive Pleads Guilty for His Role <br /> in Scheme to Defraud Bank’s Shareholders and RegulatorsRead the Press Release
A former senior vice president and chief credit officer of TierOne Bank, a publicly traded commercial bank formerly headquartered in Lincoln, Nebraska, pleaded guilty today for his role in a scheme to defraud TierOne’s shareholders and regulators.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Deborah R. Gilg of the District of Nebraska, Special Agent in Charge Thomas R. Metz of the FBI’s Omaha Division and Special Inspector General for the Troubled Asset Relief Program (SIGTARP) Christy Romero made the announcement.
“When the real estate market crashed, Don Langford, the chief credit officer and a senior vice president of TierOne Bank, worked with others to cook the bank’s books and cover up mounting losses,” said Assistant Attorney General Caldwell. “This conviction is another example of the Criminal Division’s pursuit of corporate executives who commit fraud, no matter what their title or stature.”
“The vast investigation led by the Omaha FBI Division, in conjunction with SIGTARP, ascertained and exposed a criminal enterprise maneuvering complex fraudulent transactions,” said FBI Special Agent in Charge Metz. “This case reflects the FBI’s nonstop commitment to protect our communities by aggressively investigating and bringing to justice individuals exploiting their influence or position for personal gain.”
“Langford, former TierOne senior executive and chief credit officer, conspired with others to hide losses at the bank by cooking the bank’s books and reporting falsified information to stakeholders, regulators, external auditors, and the investing public,” said SIGTARP Romero. “Langford and others engaged in fraud in order to keep regulators at bay and from closing the bank, to maintain and increase the bank’s stock price, and to enrich themselves. The bank even made an unsuccessful attempt to get taxpayer TARP funds in November 2008. SIGTARP and our law enforcement officers will bring to justice perpetrators of fraud related to TARP and hold them accountable for their crimes.”
According to a criminal information filed with his plea agreement, from at least 2009 to April 2010, Don A. Langford, 63, of Gibsonia, Pennsylvania, and others falsely inflated the value of TierOne’s loan and real estate portfolio in its required reports to the U.S. Securities and Exchange Commission (SEC) and the Office of Thrift Supervision (OTS). In January 2009, TierOne had executed a supervisory agreement with OTS that required TierOne to report information about its performance and financial condition and to maintain a minimum capital position in relation to its loan portfolio and other assets. Langford and others intentionally used outdated appraisals on properties, and rejected new appraisals that would have adversely impacted TierOne’s reportable assets, revenue and earnings. In addition, Langford and others delayed seeking new appraisals to conceal the current value of collateral and restructured loan terms to disguise the borrower’s inability to make timely interest and principal payments. As a result, Langford and others were able to hide millions of dollars in losses from regulators and investors.
In 2008, TierOne submitted an application to the OTS seeking Troubled Asset Relief Program (TARP) funding. Ultimately, TierOne withdrew its application and did not receive TARP funds. TierOne filed for bankruptcy shortly after the bank was shut down by OTS in June 2010.
Langford pleaded guilty before U.S. Magistrate Judge Cheryl R. Zwart of the District of Nebraska to conspiring to commit securities fraud, wire fraud and making false entries in a bank’s books and records, as well as one count of making false statements. Sentencing is scheduled for Dec. 5, 2014.
The case was investigated by the FBI’s Omaha Division and by SIGTARP. The department recognizes the substantial assistance of the SEC.
The case is being prosecuted by Trial Attorneys Henry P. Van Dyck and L. Rush Atkinson and Senior Litigation Counsel David A. Bybee of the Criminal Division’s Fraud Section.Former Orleans Parish Sheriff's Office Vendor and Mississippi Businessman, Kendall O. Marquar, Sentenced for Failing to File TaxesRead the Press Release
U.S. Attorney Kenneth Polite announced today that KENDALL O. MARQUAR, 36, a resident of Waveland, Mississippi, was sentenced by U.S. Magistrate Judge Sally Shushan to 12 months of home detention with electronic monitoring after pleading guilty to the one-count Bill of Information charging him with willfully failing to file taxes. In additional to the term of home incarceration, MARQUAR was ordered to pay $156,941 in restitution to the Internal Revenue Service and a fine of $3,162.
According to court documents, from in or around 2000 through in or around 2012, MARQUAR, a Mississippi businessman, owned a company called K&D Earthworks that was a maintenance and construction vendor at the Orleans Parish Sheriff’s Office (“OPSO”). During the years 2007, 2008, and 2009, MARQUAR and K&D Earthworks earned approximately $580,379 in taxable income, mainly from work performed at the OPSO. As set forth in the factual basis, MARQUAR failed to file taxes during the years 2007 through 2009.
Special Agent in Charge Gabriel L. Grchan stated, "Kendall Marquar knew that failing to file his income tax returns was a violation of the law and would bring about severe consequences. Now he must accept the punishment for his actions and will be required to pay his fair share. IRS-CI also thanks the FBI and the U.S. Attorney’s Office for their partnership in the investigation and prosecution of this case."
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigative Division. The case was prosecuted by Assistant U. S. Attorney Matt Chester.
Former Officer of Cranbury, N.J., Furniture Importer Admits False Statements to Customs AuthoritiesRead the Press Release
NEWARK, N.J. - A Pennsylvania man today admitted lying to customs authorities in order to avoid $7 million in anti-dumping duties on children’s bedroom furniture imported from China, U.S. Attorney Paul J. Fishman announced.
John Sandiford, 66, of East Earl, Pennsylvania, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with one count of importing merchandise from China by means of false statements.
According to documents filed in this case and statements made in court:
Sandiford was the managing director of a Cranbury, New Jersey, company that imported children’s wooden bedroom furniture from China. Importers must pay “anti-dumping” duties of 216 percent on some types of wooden bedroom furniture made in certain Chinese factories because those factories sell the furniture at less than fair value and materially injure U.S. industry. However, importers pay an anti-dumping duty of only 7.24 percent on the same types of furniture if it is made in Chinese factories that are not state-owned or controlled.
Between 2008 and 2011, Sandiford and others at his company imported furniture from factories with the 216 percent anti-dumping duty rate, but filed false customs documents and bills of lading stating that the furniture was made at factories with the 7.24 percent anti-dumping duty rate. These fraudulent documents enabled Sandiford’s company to avoid paying $7 million in anti-dumping duties.
The count with which Sandiford is charged carries a maximum penalty of two years in prison and a fine of $250,000 or twice the gain or loss caused by the offense. Sentencing is currently scheduled for Jan. 14, 2015.
U.S. Attorney Fishman credited special agents of U.S. Department of Immigration and Customs Enforcement, Homeland Security Investigations (ICE HSI), under the direction of Special Agent in Charge Andrew M. McLees, for the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorneys R. David Walk Jr. and Melissa L. Jampol of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit.
14-315
Defense counsel: Barry Gross Esq., Philadelphia
Sandiford, John Information
Former Haverhill Resident Sentenced for Child Pornography ChargesRead the Press Release
BOSTON – David Keith, 31, was sentenced yesterday by U.S. District Court Judge George A. O’Toole, Jr. to 78 months in prison, and 10 years of supervised release with specific conditions, including that he register as a sex offender. In May 2014, Keith pleaded guilty to distribution of child pornography, possession of child pornography, and accessing child pornography.
In September 2010, law enforcement officers executed a search warrant at Keith’s Haverhill residence. Keith, who was at home at the time, consented to an interview. Among other things, Keith admitted to having child pornography on his computer as well as to sexually assaulting a small child several years earlier. A forensic examination of the two computers seized revealed a total of 1,751 images of child pornography.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. The case was prosecuted by Suzanne Sullivan Jacobus of Ortiz's Major Crimes Unit.
Former Burnham Village Clerk Sentenced to 1½ Years in Prison for Stealing from Revenue Payments and Cheating on TaxesRead the Press Release
CHICAGO — The former longtime elected clerk for the Village of Burnham was sentenced today to 18 months in federal prison for stealing more than $650,000 from her office at the south suburb’s village hall and using most of the cash to gamble at casinos. The defendant, NANCY DOBROWSKI, pleaded guilty in May to one count each of wire fraud and filing a false federal income tax return, admitting that she stole at least $650,862, and failed to pay more than $200,000 in federal income taxes.
Dobrowski, 70, of Burnham, served as Burnham’s elected clerk from 1980 until she resigned on May 29, 2013, when FBI agents executed a federal search warrant at the clerk’s village hall office. As clerk, Dobrowski was responsible for managing Burnham’s finances and depositing cash and checks collected by the clerk’s office into the village’s bank accounts.
Dobrowski committed “nine years of pillage,” U.S. District Judge Charles Kocoras said, and ordered her to begin serving her sentence on Oct. 21. He also ordered Dobrowski to pay a total of $913,704 in restitution ― $709,501 to Burnham and $204,203 to the Internal Revenue Service ― but noted Dobrowski’s inability to pay such an amount. Before imposing the sentence in U.S. District Court, the judge heard statements from Burnham Mayor Robert Polk and a Burnham police sergeant, as well as a letter from the chief of the village’s volunteer fire department, about the debilitating financial effect that Dobrowksi’s theft had on public safety and village services. The amount she stole was enough to fund the police department for six months and leaves the small, working class village in debt, the mayor said.
Between at least 2004 and May 2013, Dobrowski took cash the village received as payment for fees and fines from the public. She then used most of the cash to gamble at casinos in Indiana and elsewhere either by taking cash to casinos or by depositing the money into her personal bank account and then withdrawing it from automated teller machines at casinos. She falsely represented the village’s finances to auditors and covered up her fraud scheme by causing false entries in village books.
As part of the fraud scheme, Dobrowski took cash from both the village cash register and the collection of money received as tow bonds. She recorded false amounts of tow bond money that had been received to make it appear that the village collected less cash than it had actually received, and sometimes she used tow bond money to balance the cash register.
To conceal her misappropriation of cash from the village cash register, Dobrowski waited a week to deposit cash into the village’s bank accounts instead of making daily deposits. By delaying deposits, Dobrowski could use funds received by the village in the later week to make up for funds she had taken during the prior week, making the deposit appear to match the revenues despite having taken cash from the register.
Dobrowski further concealed the scheme by failing to record checks received from the public as payment for village fees and services. She would place the unrecorded checks into the register to compensate for an equal amount of cash she had taken, making the register appear balanced. She provided false information to the village’s outside audit firm regarding the village’s revenues and regularly disposed of the cash register tape to conceal that the village’s revenues often did not match the deposits into village bank accounts.
Dobrowski also admitted filing a false federal income tax return for the years 2007-12, knowing that her total income was substantially greater than what she reported because she failed to report the cash she misappropriated from the village as income. Dobrowski agreed that she caused a total tax loss of $204,203 during those years.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and James C. Lee, Special Agent-in-Charge of the Chicago Office of the Internal Revenue Service Criminal Investigation Division.
The government is being represented by Assistant U.S. Attorney Steven Block.