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Tuesday 8 July 2014
Loretto Man Pleads Guilty to Lying About Employees’ WagesRead the Press Release
MINNEAPOLIS—Today in federal court, a 52-year-old Loretto man pleaded guilty to felony false statements in connection with prevailing wage violations. Jeffrey John Plzak was charged on June 17, 2014, and entered his plea this morning in Minneapolis before United States District Court Judge Patrick J. Schiltz.
As set forth in the plea agreement, Plzak and his spouse run Honda Electric, Inc., a company based in Loretto, Minnesota. Honda Electric bids on construction projects, including highway and road projects, that are federally and state funded. Many of the projects Plzak bid on required that Honda Electric pay its electricians and other laborers the prevailing wage rate.
On numerous occasions, Plzak won bids based in part on the representation that Honda Electric employees working on the project would receive prevailing wage. Those projects required periodic submission by Honda Electric of a certified payroll report. In those reports, Plzak knew Honda Electric, at his direction, was representing to the United States Department of Transportation – Federal Highway Administration and to the Minnesota Department of Transportation that Honda Electric’s employees were being paid the required prevailing wage.
In fact, as Plzak knew, in many instances employees were being paid less than half of the prevailing wage rate. In total, Plzak admitted that over a series of projects between 2010 and 2013, Honda Electric underpaid its employees over $271,000.
For example, Plzak admitted that in a certified payroll report dated September 24, 2010, Honda Electric stated it was paying prevailing wage on a federally funded project in Ramsey County, when, in fact, he knew the employees were receiving far less than prevailing wage.
“When contractors lie about paying prevailing wage, workers, competitors, and taxpayers all lose,” said United States Attorney Andrew M. Luger. “Workers are underpaid, competitors who played by the rules are underbid, and the wrongdoer makes off with taxpayer dollars meant for honest employers. We thank the outstanding work done by the Minnesota Department of Transportation and the FBI in investigating these and other prevailing wage violations.”
As a result of his plea, Plzak faces up to five years in prison, repayment of unpaid wages, and a fine of up to $250,000 or twice the loss amount, whichever is greater. Plzak will be sentenced at a later date.
This case is the result of an investigation by the Minnesota Department of Transportation’s Labor Compliance Unit and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney David M. Genrich.Large-Scale Distributor of Unapproved Foreign Prescription Drugs IndictedRead the Press Release
ALEXANDRIA, Va. – James Quinn, 73, of Surrey, United Kingdom, was indicted yesterday by a federal grand jury for his alleged involvement in the illegal shipments of non-FDA approved prescription drugs to co-conspirators in the United States. Quinn, along with two companies in the United Kingdom and Switzerland that he controls, were charged with five felony counts and he is due to appear before U.S. District Court Judge Liam O’Grady for arraignment on Aug. 18, 2014.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Antoinette V. Henry, Special Agent in Charge of FDA’s Office of Criminal Investigations (OCI); Clark Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Washington; Gary Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Karl C. Colder, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Washington Field Division; and M. Douglas Scott, Arlington County Chief of Police, made the announcement.
According to the indictment, Quinn served as a supplier of non-FDA-approved drugs through his Switzerland-based company, Atlantic Pharmaceuticals AG, and he served as a trans-shipper of non-FDA-approved drugs through his United Kingdom-based company, World Medical Limited. The indictment alleges that, as a trans-shipper, Quinn received non-FDA-approved drugs from countries such as India and the United Arab Emirates, broke those shipments into smaller packages, affixed false customs declarations and sent the packages to the United States on behalf of co-conspirators who sold non-FDA-approved drugs to medical practices across the United States. Quinn’s co-conspirators are alleged to have included Gallant Pharma International Inc., which pleaded guilty in the Eastern District of Virginia to 12 felony offenses on Dec. 2, 2013, and Pharmalogical Inc. (d/b/a Medical Device King), whose co-owners, William Scully and Shahrad Rodi Lameh, are awaiting trial on a 73-count indictment in the Eastern District of New York.
Quinn and his companies, World Medical Limited and Atlantic Pharmaceuticals AG, were charged in the Eastern District of Virginia with the following offenses: conspiracy, which is punishable by a maximum penalty of five years in prison; importation contrary to law, which is punishable by a maximum term of 20 years in prison; two counts of felony introduction of misbranded drugs into interstate commerce, each of which are punishable by a maximum term of three years; two counts of misdemeanor introduction of misbranded drugs into interstate commerce, each of which are punishable by a maximum term of one year; and unlicensed medical wholesaling, which is punishable by a maximum term of ten years.
The investigation was conducted by FDA-OCI, DEA’s Group 33 Diversion Task Force, ICE-HSI and the U.S. Postal Inspection Service, with assistance from the Arlington County Police Department. Assistant U.S. Attorneys Lindsay A. Kelly, Maya Song and Jay Prabhuare prosecuting the case.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-277.
Kodiak Man Sentenced to Four Consecutive Life Sentences for Murder of Coast Gaurd Employees in KodiakRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced that today, Chief District Court Judge Ralph Beistline sentenced James Michael Wells to four consecutive life sentences for the murders of U.S. Coast Guard Electrician’s Mate First Class James Hopkins and retired Chief Boatswain’s Mate Richard Belisle on April 12, 2012. Both Hopkins and Belisle, who was working a Coast Guard civilian employee, were murdered at U.S. Coast Guard Communications Station Kodiak.
Wells, 63, of Kodiak, was convicted after a 19-day jury trial on all six counts of the indictment: two counts murder in the first degree, in violation of 18 U.S.C. § 1111, one for each victim; two counts of murder of an officer or employee of the United States, a violation of 18 U.S.C. § 1114, one for each victim; and two counts of possession and use of a firearm in relation to a crime of violence, a violation of 18 U.S.C. § 924(c).
Wells was given one life sentence for the murder of Richard Belisle, counts 1 and 3 of the indictment, and a second consecutive life sentence for the murder of Petty Officer James Hopkins, counts 2 and 4 of the indictment. Wells was also given 2 additional consecutive life sentences, one for each victim, for using a firearm to commit the murders. There is no possibility of parole.
In a brief statement, Wells said that he was innocent, a claim rejected by Chief Judge Beistline: “There’s one thing I know, James Wells is a cold-blooded murderer. Any objective person would reach the same conclusion.” He found that Wells acted out of “anger, envy, and jealousy,” murdering his “competition” because he “could not compete” in the workplace anymore. He noted that Wells has showed no remorse, and that this level of “extreme criminal conduct” called for the maximum sentence.
Chief Judge Beistline also commented that the wives of both murdered men had attended the entire trial, and conducted themselves in a way that showed their strength of character.
Ms. Loeffler commended the strength and fortitude of the Belisle and Hopkins families throughout the investigation and the trial. She also commended the thoroughness and professionalism of the investigation, led by the Federal Bureau of Investigation, with support from the Coast Guard Investigative Service, and the Alaska State Troopers.
U.S. Attorney Karen L. Loeffler prosecuted the case along with Assistant U.S. Attorney Bryan Schroder, and Captain Kathleen A. Duignan, U.S. Coast Guard, who was appointed as a Special Assistant U.S. Attorney, with support from Assistant U.S. Attorney Bryan Wilson.Judges Sentences Coraopolis Man to 24 Months in Prison for Possessing Child PornographyRead the Press Release
PITTSBURGH – An Allegheny County man pled guilty and has been sentenced in federal court to 24 months imprisonment, to be followed by 20 years of supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on Daniel Lewis Dolde, 44, of Coraopolis, Pa.
According to information presented to the court, on or about May 10, 2012, Dolde possessed visual depictions, namely, videos and images in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Department of Homeland Security – Homeland Security Investigations for the investigation leading to the successful prosecution of Dolde.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
John Tebbetts Sentenced in Federal CourtRead the Press Release
Owner of Tebbs Head shops Sentenced to 87 Months
SYRACUSE, NEW YORK – RICHARD S. HARTUNIAN, United Sates Attorney, Northern District of New York, announces that JOHN TEBBETTS, age 34, of Rome, NY, was sentenced today in U.S. District Court in Syracuse to 87 months imprisonment, followed by 3 years of supervised release, for distributing synthetic drugs from his 12 head shops.
As part of his plea, TEBBETTS admitted to owning several Tebbs head shops in Central New York and Maine, as well as a warehouse in Oneida. TEBBETTS admitted that he possessed the Schedule I controlled substances: AM-2201, JWH-122, JWH-203, and JWH-250, all synthetic cannabinoids (commonly referred to as “Spice” or “K2”) with the intent to distribute these products. TEBBETTS also admitted to possessing controlled substance analogues (synthetic cathinones, commonly known as “Bath Salts”) with the intent to distribute them and intending that these substances be used for human consumption. Lastly, TEBBETTS admitted to purchasing a 2012 motor home for over $157,000.00 which was cash proceeds from his illegal sale of controlled substances and controlled substance analogues. As part of his plea, TEBBETTS agreed to forfeit six vehicles, including the motor home, and over $314,000.00.
These prosecutions resulted from a lengthy investigation undertaken in the spring of 2012 by the Syracuse Resident Office of the Drug Enforcement Administration (DEA), along with the Onondaga County Sheriff’s Office, and the Department of Homeland Security.
Further questions or inquiries may be directed to Assistant United States Attorney Carla Freedman, the prosecutor handling the case, at (315) 448-0672.
Illegal Re-entry Defendant SentencedRead the Press Release
Contact Person: Bill Day (803) 929-3000
Columbia, South Carolina -----United States Attorney Bill Nettles stated today that ABIZAHI GARDUNO-RIVERA, a/k/a “Afrain Guzman,” age 34, of Mexico, was sentenced in federal court in Columbia, South Carolina, for Illegal Re-Entry. United States District Judge Childs of Columbia, South Carolina sentenced to eighteen months in federal custody to be followed by three years supervised release. The Defendant is also required to surrender for Deportation by Homeland Security when he completes his sentence.
Evidence presented at the change of plea hearing established that Garduno-Rivera is a citizen of Mexico and was initially deported in October 1998. In September 2002, he was located in Georgia where he was serving a 12 year sentence for Trafficking in Cocaine. Following completion of his sentence, Garduno-Rivera was again deported in May 2006. On September 5, 2013, he was arrested by the Aiken County Sheriff's office for Trafficking Methamphetamine, Possession of Hydrocodone, and 3 counts of Possession of a Weapon During a Violent Crime. The U.S. Department of Homeland Security - Bureau of Immigration and Customs Enforcement (ICE) was contacted when it was discovered Garduno-Rivera was in the United States illegally.
Mr. Nettles stated the maximum penalty for illegal re-entry is imprisonment for 20 years and/or a fine of $250,000.
The case was investigated by the Aiken County Sherriff's Office and ICE. Assistant United States Attorney William E. Day, II of the Columbia is prosecuting the case.Illegal Alien Charged with Possessing Ammuntion and False Social Security CardRead the Press Release
PITTSBURGH - A resident of East Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of possession of ammunition by an illegal alien and use of a false social security number, United States Attorney David J. Hickton announced today.
The two-count indictment named Guillermo Manuel Justo, a/k/a Rolando Velez Latorre, 38, as the sole defendant.
According to the indictment, on May 28, 2014, the defendant, an illegal alien, unlawfully possessed 81 rounds of .40 caliber Smith and Wesson ammunition and a social security card which falsely identified him as Rolando Velez Latorre.
The law provides for a maximum total sentence of 15 years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
Homeland Security Investigations 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.
Inmate Sentenced for Possessing Homemade Knife in McDowell Federal PrisonRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that a federal inmate was sentenced to fifteen additional months in federal prison for possessing a weapon while incarcerated. Billy Williams, 25, pleaded guilty last March, admitting that in October 2013, he possessed a homemade knife, commonly called a shank, while he was serving time at the Federal Correctional Institution at McDowell. Senior United States District Judge David A. Faber imposed the sentence and ordered that it run consecutively to the 120-month sentence that Williams is already serving for, among other offenses, assault with intent to kill while armed.
The case was investigated by the Federal Bureau of Prisons and was prosecuted by Assistant United States Attorney John File.
Hogsett Announces Guilty Plea of Postal Employee on Child Exploitation ChargesRead the Press Release
"Operation Community Watch" prosecution allegedly involves thousands of images and videos
EVANSVILLE B Joseph H. Hogsett, the United States Attorney, announced today that a former postmaster at the Elberfeld Post Office branch entered a plea of guilty of possession and receiving child pornography. Floyd M. Thompson, age 60, of Evansville, appeared in federal court today in front of U.S. District Chief Judge Richard Young.
"Those who accept the responsibility of public trust and betray it, will be held accountable for their actions. Additionally, we are unwavering in our resolve to find and prosecute those who exploit our children," Hogsett said. "As this case shows, you are not anonymous online - if you engage in this behavior, you will be identified and you will be prosecuted."
According to charging documents, law enforcement first began their investigation in June 2013, when an undercover member of the Federal Bureau of Investigation's Southern Indiana Child Exploitation Task Force connected with a computer that was allegedly sharing sexually-explicit images depicting young children. After downloading a number of these files from the user, investigators traced the online activity to a home in Evansville.
As a result of this information, a federal search warrant was executed on August 13, 2013, at the Evansville home of defendant Thompson. Federal agents interviewed Thompson and took his computer equipment into custody. A preliminary forensic examination of these computers allegedly revealed thousands of images and videos of child pornography depicting young girls between the ages of 3 and 12 years old.
Acting Special Agent in Charge Kevin P. Lyons, “The FBI remains committed to protecting children from individuals that prey on their innocence.”
According to Assistant U.S. Attorney Todd Shellenbarger, who is prosecuting the case for the government, Thompson faces up to twenty years in federal prison. A sentencing date has been scheduled for August 10, 2014 at 11:00 a.m. In addition, the defendant also could be sentenced to a lifetime term of supervised release at the end of his prison term, as well as registration as a sexual offender.
This arrest comes as Hogsett has announced a comprehensive crackdown on child exploitation in Indiana. Over a year ago, he launched "Operation Community Watch," which allows prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials. In this case, these efforts were facilitated by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Evansville Police Department.
This case was brought as part of Project Safe Childhood, a larger nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Hogsett pointed out that in the last Project Safe Childhood reporting year, the Office prosecuted 65 defendants, an increase of 25 over the prior year.
The greatest measure of the PSC program's impact, however, is the identification and rescue of child victims of sexual exploitation and abuse. Over the last year, the U.S. Attorney's Office successfully identified more than 120 child victims, including minors in Indiana, numerous places in the United States, Canada, Switzerland, and other countries around the world.
Led nationally 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.
Gun Store Owner Convicted of Firearms ViolationRead the Press Release
VICTORIA, Texas – Garrett Vincent Riedesel, 25, of Victoria, has entered a guilty plea to one count of possession of an unregistered firearm, announced United States Attorney Kenneth Magidson.
Riedesel, a federal firearms licensee, owned Garrett’s Gun Vault in Victoria at the time of his arrest. The store is now closed.
Riedesel admitted he was in possession of a Remington Model 870, 12-gauge shotgun which had a barrel length of more than seven inches and an overall length of nearly 15 inches. A check of the National Firearms Registration and Transfer Record (NFRTR) revealed that the firearm was not registered to Riedesel.
The investigation began after customers reported having trouble retrieving firearms that had been dropped off at Riedesel’s establishment for repair.
On March 13, 2014, a federal search warrant was executed at Garrett’s Gun Vault in Victoria. At that time, agents seized 117 firearms that were not properly logged into Riedesel’s acquisition and disposition books as required by federal law. Four of the weapons seized were required to be registered in the NFRTR, including the shotgun Riedesel admitted to possessing as part of his guilty plea today.
Senior U.S. District Judge John D. Rainey has set sentencing for Oct. 6, 2014. At that time, Riedesel faces up to 10 years in federal prison and a possible $250,000 maximum fine. He was ordered to remain in custody pending that hearing.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Texas Department of Public Safety. Assistant U.S. Attorney Patti Hubert Booth is prosecuting.
Ghanian National Sentenced to 13 Years in Prison for Heroin Distribution ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced George Frimpong Ebo-Amissah, a/k/a “Salifu Abdullah,” and “Wagba,” age 46, a Ghanian national, today to 13 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Chief James W. Johnson of the Baltimore County Police Department; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According to Ebo-Amissah’s plea agreement, beginning in 2011, Ebo-Amissah was one of the leaders of a conspiracy to distribute heroin in Maryland. Ebo-Amissah, who was living in Ghana, arranged couriers who would transport heroin on commercial flights to the United States. During the investigation, law enforcement intercepted telephone calls between Ebo-Amissah and Nana Boateng, a U.S. based heroin trafficker. Ebo-Amissah had numerous conversations with Boateng about importing heroin into the United States, including details about obtaining heroin in Ghana and how much a particular courier could bring to the United States.On May 29, 2011, a courier that Ebo-Amissah had hired to bring heroin into the U.S. was stopped as she was coming off a flight from Ghana. Agents discovered approximately 3.3 kilograms of heroin in her suitcase. The courier called Ebo-Amissah for further instructions and Ebo-Amissah told her that she would receive a return call. Shortly thereafter Boateng called the courier unsuccessfully. At the time the courier was detained, investigators saw Boateng at the airport, apparently waiting for someone.
Nana Boateng, age 34, of Leesburg, Virginia, previously pleaded guilty to his role in the conspiracy and was sentenced to 84 months in prison.
United States Attorney Rod J. Rosenstein praised the DEA, Baltimore County Police Department and HSI Baltimore for their work in the investigation. Mr. Rosenstein also commended the U.S. Department of State’s Diplomatic Security Service and the Department of Justice Office of International Affairs for their assistance in Ebo-Amissah’s extradition from Ghana to the United States.
Mr. Rosenstein thanked Assistant U.S. Attorney Kenneth S. Clark, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Fourth City of Buffalo Employee Pleads Guilty to Stealing Thousands of Dollars from Parking MetersRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Franklin Lopez, 33, of Buffalo, N.Y., pleaded guilty to stealing thousands of dollars from the City of Buffalo, a Governmental agency which receives federal funding, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 10 years in prison, a fine of $250,000 or both.
“Two and a half years ago, the public first learned of wide spread corruption in this City department,” said U.S. Attorney Hochul. “Thanks to the continuing efforts of law enforcement and current City officials, we can now report that a fourth Parking Enforcement employee has been convicted of stealing tens of thousands of dollars over a multi-year period of time. While seldom have we seen a single department so riddled with criminals, the public can rest assured that we will not stop until all who broke the law are brought to justice.”
Assistant U.S. Attorney Maura K. O'Donnell, who is handling the case, stated that the defendant was employed part time as a coin collector for in the City of Buffalo Department of Parking Enforcement between 2002 and 2011. In this capacity, Lopez was responsible for collecting coins deposited into parking meters.
On August 16, 2011, Buffalo Police found over $1,300 in coins inside the defendant's work vehicle, money that was supposed to be deposited into the city treasury. Further investigation, including a review of Lopez's banking records, revealed a substantial amount of cash deposits and cash payments for a variety of items. Between November 2002 and August 2011, Lopez stole approximately $69,000 from city parking meters.
With today’s conviction, the amount of money proven to be stolen by the convicted defendants exceeds $300,000.
Lopez is the fourth employee of the Department of Parking Enforcement to be convicted in this case. James Bagarozzo was convicted of stealing over $200,000 from Buffalo parking meters and sentenced to 30 months in prison on August 16, 2013. Bagarozzo was also ordered to pay $210,000 in restitution. Lawrence Charles has also been convicted of stealing over $10,000 from Buffalo parking meters and was sentenced to six months and prison and ordered to pay $15,000 in restitution. Francis Tronolone was convicted of stealing $9,000 in coins from city parking meters and is scheduled to be sentenced on August 15, 2014.
Sentencing is scheduled for October 16, 2014 at 1:00 p.m. before Judge Arcara.
The plea is the culmination of an investigation on the part Special Agents from the Federal Bureau of Investigation, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.Former WECO Owner Sentenced for Fraudulent Aircraft RepairsRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge John A. Mendez sentenced the former owner and president of WECO Aerospace Systems Inc. today to two and a half years in prison, United States Attorney Benjamin B. Wagner announced.
On November 4, 2013, after a three-week trial, a federal jury found William Hugh Weygandt, 64, of Granite Bay, guilty of conspiracy to commit fraud involving aircraft parts repair. A hearing to determine restitution is scheduled for September 16, 2014 at 1:30 p.m. Judge Mendez ordered Weygandt to surrender to begin serving his sentence on September 23, 2014.
At sentencing, Judge Mendez stated: “The jury verdict, conviction, and evidence demonstrated that Weygandt was the leader of a company engaged in fraud over a number of years. … He had the ability to stop the fraud. … This was, remains, and will always be a serious offense.”
WECO was a Federal Aviation Administration-certified repair business with facilities in Lincoln and Burbank, Calif. Weygandt began working for WECO upon its founding in 1974 by his father. By 2005, he was the president and sole owner. In January 2007, Weygandt sold the 75-employee company to Gulfstream Aerospace Corporation for approximately $17 million, and remained as president of the company until February 1, 2008.
According to evidence presented at trial, WECO was permitted by the FAA to repair certain types of aircraft parts, including starter generators and converters, used on various types of aircraft, including small helicopters used by tour companies and law enforcement agencies.
Evidence at trial established that WECO employees at both its Lincoln and Burbank repair stations regularly failed to follow FAA regulations in repairing and overhauling the aircraft parts. In many cases, WECO did not even have equipment capable of performing required tests. WECO employees at both locations nonetheless performed repairs and returned parts to customers, falsely certifying that the parts had passed tests and had been repaired in accordance FAA standards. The evidence at trial showed that in spite of being aware of the lack of testing equipment at the Burbank facility since 1985 and at the Lincoln facility since the mid-1990s, Weygandt allowed repairs to continue and failed to respond to repeated requests from employees for the equipment necessary to perform repairs and overhauls in accordance with the FAA requirements.
“Federal aircraft part repair regulations are intended to promote aircraft safety,” said U.S. Attorney Wagner. “William Weygandt allowed his company to circumvent those regulations for profit. The sentence imposed today reflects the seriousness of the crime. FAA part repair regulations are not advisory, and those who ignore them do so at their peril.”
“The sentencing today of the former owner and president of WECO Aerospace Systems Inc., William Hugh Weygandt, clearly demonstrates the severe penalties that await those who would seek to certify the repair and overhaul of aircraft parts illegally,” said William Swallow, Department of Transportation (DOT) Office of Inspector General (OIG) Regional Special Agent-in-Charge. “Safety of the Nation’s air transportation system remains a priority of DOT and the OIG. Working with our law enforcement and prosecutorial colleagues, we will continue our vigorous efforts to uncover suspect unapproved parts, prevent their use, and punish to the fullest extent of the law those who would seek to compromise the integrity of DOT’s safety programs.”
“This is a straightforward case in which Weygandt’s greed eclipsed his responsibility to ensure his crews had the necessary equipment to properly perform and certify repairs. His egregious and willful disregard of proper procedure and law jeopardized the lives and safety of pilots, passengers, and the unsuspecting public. We are all fortunate an accident did not occur,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation’s Sacramento division. “The FBI and our law enforcement partners are committed to identifying and thoroughly investigating anyone who intentionally circumvents safety regulations and laws to enhance profitability.”
This case is the product of an investigation by the Inspector General for the Department of Transportation, and the Federal Bureau of Investigation, along with the Inspectors General of the Department of Homeland Security, and Department of Defense. Assistant U.S. Attorneys Kyle Reardon and Michele Beckwith prosecuted the case.
There have been no known instances in which a fraudulent WECO repair resulted in an aircraft accident. However, multiple aircraft operators testified at trial that had they known that WECO had not properly repaired their parts, they would not have used them. According to former FAA Official Anthony Broderick, a defense witness at the trial, FAA regulations like the ones implicated in this case are intended “to promote safety of flight in civil aviation in the United States.” Upon learning of the allegations, the FAA issued an emergency order suspending WECO’s repair station certificate. In addition, since finalizing its purchase of WECO in 2008, Gulfstream fully cooperated with the FAA, as well as law enforcement in the investigation and prosecution of this case.
Former WECO executives Jerry Edward Kuwata, 60, of Granite Bay; Michael Dennis Maupin, 58, of Arbuckle; and Anthony Vincent Zito, 47, of Saugus, previously pleaded guilty to federal offenses in connection with the conspiracy and await sentencing.
Former Sierra Army Depot Employee Indicted for Theft of Military EquipmentRead the Press Release
SACRAMENTO, Calif. — Former Sierra Army Depot employee Tony Herrin, 36, of Reno, Nev., was arrested on Monday for conspiracy to steal and sell government property and theft and sale of government property, United States Attorney Benjamin B. Wagner announced.
On Thursday, July 3, 2014, a federal grand jury returned a two‑count indictment alleging that between January and April 2013, Herrin and co-conspirator Devon Biggs, civilian employees at the Sierra Army Depot (SIAD) in Lassen County, conspired to steal and sell United States military equipment from SIAD.
According to the indictment, on numerous occasions Herrin and Biggs removed U.S. military equipment from SIAD buildings, adjusted item codes in the computer database to conceal their thefts and arranged to sell the equipment to various buyers. On one occasion, they loaded a military vehicle with equipment stolen from SIAD, drove the vehicle from SIAD to a parking lot just outside the SIAD gate, and sold the equipment to an individual whom they had arranged to meet.
Herrin made an initial appearance in Reno on Monday and is scheduled to be arraigned on July 14, 2014. Biggs was charged in a separate indictment on May 5, 2013, and is scheduled to appear in district court for a status conference on September 17, 2014.
This case is the product of an investigation by the Law Enforcement Division of the United States Army and the Federal Bureau of Investigation. Assistant United States Attorneys Jean M. Hobler and Christiaan Highsmith are prosecuting the case.
If convicted, Herrin faces a maximum statutory penalty of five years in prison and a $250,000 fine on count one and 10 years in prison and a $250,000 fine on count two. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Los Angeles Sheriff's Deputy Sentenced for Mortgage FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former deputy of the Los Angeles County, Calif., Sheriff’s Department has been sentenced in federal court for his role in an $11 million mortgage fraud scheme.
Arman Nshanian, 38, of Corona, Calif., was sentenced by U.S. District Judge Greg Kays on Monday, July 7, 2014, to three years and six months in federal prison without parole. The court also ordered Nshanian to pay $785,926 in restitution.
Nshanian was convicted at trial on Dec. 6, 2013, of conspiracy to commit wire fraud and two counts of wire fraud related to fax transmissions and emails that were sent across state lines during the mortgage application process. During the trial, Nshanian committed perjury when he testified in his own defense. As a result of Nshanian’s false testimony, the court ruled that he obstructed justice, which warranted an enhanced sentence.
Co-defendant James Arthur Nash, Jr., 44, also of Corona and also formerly a sheriff’s deputy, was also convicted at trial of his role in the criminal conspiracy. Nash also was found guilty of four counts of wire fraud. He is scheduled to be sentenced on Aug. 12, 2014.
Nshanian and Nash are among nine defendants who participated in a mortgage fraud scheme from early 2005 through Aug. 4, 2006. Mortgage lenders made loans of approximately $11,092,886 on 16 residential properties in Lee’s Summit, Liberty, Blue Springs, Parkville, Independence and Oak Grove, Mo. From that total, unbeknownst to the lenders, buyers received approximately $2,006,845 in secret illegal kickbacks from the loan proceeds. The scheme resulted in a financial loss to mortgage lenders of nearly $5 million.
Nshanian fraudulently purchased a residential property in Lee’s Summit, Mo., for $750,000 and received an illegal kickback of $100,000. In loan applications, Nshanian provided false information about his employment and inflated his income. He falsely represented that he would live in the residence. Nshanian would not have qualified financially for the loans if he had been truthful, as his debt to income ratio would have been 91 percent. The loans soon went into default and were foreclosed. Nshanian never saw the property, never received the keys, and never lived in it. Nshanian created a shell company that received the $100,000 payment for work purportedly done by the company, but which in reality was only used to conceal the illegal kickback Nshanian received.
A week after closing on the Lee’s Summit property, Nshanian signed a contract to purchase a $798,000 residential property in Leawood, Kan., but the purchase did not occur. He also introduced his sister, Anahit Nshanian, to the scheme. She purchased two properties in Lee’s Summit for $520,000 and $657,500; she was charged in a separate case and pleaded guilty to those fraudulent purchases. Anahit Nshanian received a total of $169,307 in kickbacks and paid $22,000 to Arman Nshanian from the proceeds. Her loans quickly went into default and were foreclosed.
According to court documents, less than three months after purchasing the Lee’s Summit property, Arman Nshanian purchased a residential property in Corona for $631,000. In the loan applications for the first and second loans, he once again made false representations to get the loans.
Nash fraudulently purchased two residential properties in Blue Springs, Mo. He received $100,000 in secret kickbacks from each property.
Seven co-defendants have pleaded guilty and been sentenced. Leann Raejeana Turner, 44, of Blue Springs, was a real estate agent working for a series of real estate companies during the conspiracy. Carole L. Colson, 71, formerly doing business as Carole Colson Real Estate in Blue Springs, now of Lake Worth, Fla., was a real estate agent. Bruce Q. Williams, 44, of Kansas City, Kan., and Anthony E. Hicks, 42, of Little Rock, Ark., were loan officers at mortgage brokerage companies. Other co-defendants were “home buyers” who conspired to defraud mortgage lenders.
The scheme involved buying and selling homes at inflated prices, obtaining mortgage loans at the inflated prices, then kicking back $100,000 of the excess loan proceeds to each of the home buyers without the lenders’ knowledge. The scheme financially benefitted all of the conspirators. Turner (the real estate agent for 15 of the 16 transactions) received commissions and sometimes hidden payments and assets; Williams and Hicks (the loan officers) received commissions from the transactions. The home buyers received illegal secret kickbacks.
Turner and Colson listed and arranged for the sale of the homes at inflated prices and solicited buyers. Misrepresentations and omissions of material facts were made to mortgage lenders in order to obtain the loans. In order to obtain the loan proceeds without the lenders’ knowledge, the buyers created fictitious businesses that issued false invoices that claimed the businesses had provided work and services for which they were entitled to receive loan proceeds.
This case is being prosecuted by Assistant U.S. Attorney Linda Parker Marshall. It was investigated by the FBI and IRS-Criminal Investigation.Former Harrisburg Resident Sentenced to 60 Months Imprisonment for Possession of FirearmRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Anthony Knight, 45, formerly of Harrisburg, was sentenced to 60 months imprisonment by the Senior United States District Court Judge William Caldwell.
Knight was indicted in 2008 as the result of an investigation by Drug Enforcement Administration and the Dauphin County Drug Task Force. He plead guilty in May 2013, after admitting that he had possessed a .38 caliber firearm at the time of his arrest.
The case as part of a continuing cooperative effort to prosecute drug trafficking and firearms offenses in Dauphin County. The prosecutor assigned is Assistant Unites States Attorney Michael A. Consiglio.
****Former Executive Director of Gallup Housing Authority Pleads Guilty to Federal Fraud and Theft ChargesRead the Press Release
ALBUQUERQUE – Two men from Gallup, N.M., pleaded guilty today to federal charges arising out of a scheme to defraud the United States and the U.S. Department of Housing and Urban Development (HUD) of more than $100,000. The guilty pleas were announced by U.S. Attorney Damon P. Martinez, Phyllis Robinson, Special Agent in Charge of Region 6, HUD Office of Inspector General, and Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI.
The defendants, Danny Garcia, 38, and Michael Virruso, 61, were indicted in Aug. 2013, on one count of conspiracy and eight counts of making false claims against the United States. Garcia also was charged with three counts of theft from programs receiving federal funds.
According to the indictment, between June 2010 and Oct. 2012, Garcia and Virruso engaged in a scheme to steal federal funds provided by HUD to the Gallup Housing Authority (GHA). HUD is a federal agency whose core mission is to make quality, affordable housing accessible to all Americans. HUD oversees and funds programs designed to provide affordable housing for low-income Americans. One such program, the Capital Fund Program (CFP), provides grants to public housing agencies for the purpose of making improvements to public housing developments. GHA is a public housing agency that receives approximately $400,000 in CFP grants each year and Garcia was the Executive Director of GHA at the time of the offenses charged in the indictment.
As Executive Director of GHA, Garcia was responsible for selecting contractors to carry out GHA projects, reviewing and approving invoices payable by GHA, and requesting HUD funds to pay for GHA projects. According to the indictment, in summer 2010, Garcia awarded a contract to remove and replace sidewalks in a GHA housing development to a construction company that employed Virruso and appointed Virruso to act as safety inspector. While working on the project, Virruso submitted invoices to GHA for work performed by the company and for which the company received payment. Garcia used GHA funds to pay Virruso’s invoices and then obtained reimbursement from HUD’s CFP. Virruso and Garcia then formed a company together, MCL Construction. Virruso submitted a fraudulent invoice from MCL to Garcia, who approved the invoice for payment from HUD funds, and both men collected a share of the proceeds. Virruso fraudulently received more than $75,000 through this scheme. In addition, Garcia embezzled more than $15,000 of HUD funds by misusing a GHA debit card.
During today’s proceedings, both men entered guilty pleas to Counts 1 and 9 of the indictment charging them with conspiracy to commit false claims against the United States and false claims against the United States. Garcia also pleaded guilty to Count 10 of the indictment charging him with theft from a program receiving federal funds. In their respective plea agreements, Garcia and Virruso each admitted participating in the unlawful scheme described in the indictment. Garcia also admitted embezzling GHA funds by making personal purchases exceeding $5,000 per year using a debit card linked to a GHA bank account.
Under the terms of the plea agreements, Garcia and Virruso each will be sentenced to a prison term within the range of 18 to 24 months followed by a term of supervised release to be determined by the court. Garcia also was ordered to pay $105,000 with interest in restitution to the United States, including $75,000 that is to be paid jointly with Virruso. Both men remain on conditions of release pending their sentencing hearings, which have yet to be scheduled.
The case was investigated by the Region 6, HUD Office of Inspector General and the Albuquerque Division of the FBI, and is being prosecuted by Assistant U.S. Attorney Jeremy Peña.
Former Ceo of New London Manufacturing Company Pleads Guilty to Violating Clean Water ActRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, John K. Gauthier, Acting Special Agent in Charge of EPA’s Criminal Investigation Division for New England, and Commissioner Robert Klee of the Connecticut Department of Energy and Environmental Protection announced that THOMAS H. FARIA, 37, the former chief executive officer and president of Faria Limited, LLC, doing business as Sheffield Pharmaceuticals, waived his right to indictment and pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to a felony violation of the Clean Water Act. As a condition of his guilty plea, FARIA resigned from the company on March 7, 2014, and shall have no role in the operations or management of Faria Limited.
“Any CEO operating a factory in Connecticut who ignores federal and state environmental laws risks not only significant fines, but also a jail sentence,” said U.S. Attorney Daly. “The Clean Water Act applies to every industrial entity doing business in Connecticut. For at least seven years, Thomas Faria knowingly violated the law by directing his employees to discharge industrial wastewater into the public sewage system without a permit, and without monitoring the chemical levels of the discharge. He pursued this illegal course over the objection of a manager who urged him in writing to bring the company into compliance with the law. This Office will vigorously prosecute corporate officers whose decisions and actions, in the name of corporate profits, threaten Connecticut’s natural resources and harm the public’s right to a clean environment. We recognize and thank the EPA for their invaluable work in protecting the environmental integrity of Connecticut’s rivers and the Long Island Sound.”
“Blatant disregard for our environmental laws occurs whenever greed and poor judgment intersect,” said Acting Special in Charge Gauthier. “EPA, along with the Department of Justice and our federal and state partners, work tirelessly to protect New England’s natural resources and to ensure that there are serious repercussions for decisions like those of Thomas Faria.”
“Connecticut’s laws and regulations concerning the handling of industrial discharges are designed to protect public health and natural resources,” said Commissioner Klee. “Mr. Faria’s blatant disregard for those requirements stands in sharp contrast to the majority of business leaders in our state who understand that respect for and compliance with environmental rules is consistent with growth and a strong bottom line. The no nonsense handling of this case by the U.S. Attorney’s office sends a strong signal to all businesses that it clearly pays to ‘do the right thing’ at all times when it comes to our environment.”
According to court documents and statements made in court, the Clean Water Act requires that every company obtain a permit from the Connecticut Department of Energy and Environmental Protection (“CT DEEP”) before it can discharge its industrial wastewater to the public sewage system, commonly known as the publicly owned treatment works (“POTW”). Companies are also required, among other things, to test and monitor their industrial wastewater monthly to ensure that the chemical levels in the wastewater do not exceed federal and state limitations.
Sheffield Pharmaceuticals (“Sheffield”) has a factory at 170 Broad Street in New London that manufactures a wide range of over-the-counter pharmaceutical creams, ointments and toothpastes. From approximately 1986 to July 2011, Sheffield discharged industrial wastewater from its New London manufacturing operations to the New London POTW without a permit and in violation of Connecticut’s approved pretreatment program. The New London POTW discharges to the Thames River in southeastern Connecticut. During this entire time period, Sheffield lacked a pretreatment system at its factory to treat its industrial wastewater prior to discharge to the New London POTW, performed no regular monitoring of its discharges of industrial wastewater, and submitted no monthly monitoring reports to the CT DEEP.
After becoming the company’s president and chief executive officer in April 2003, FARIA soon learned through his own employees that Sheffield was discharging pollutants, including the toxic metal zinc, in its industrial wastewater without the required permit. FARIA also learned that in order to obtain a permit from CT DEEP, the company would have to install, at significant expense, a wastewater pretreatment system that would pretreat its industrial wastewater prior to discharging it to the New London POTW. Although FARIA’s own employees urged him to make the financial investment to bring the company into compliance, FARIA chose not to do so. FARIA continued this illegal course even when four environmental consulting firms, which the company had hired, advised him that the discharge of industrial wastewater to the public sewage treatment system, without a pretreatment system and CT DEEP permit, is illegal.
On April 20, 2011, the CT DEEP conducted an unannounced inspection of Sheffield. After finding that the company had no wastewater discharge permits, the CT DEEP inspector issued a Notice of Violation and cited the company for discharging manufacturing and laboratory wastewater without a permit. On or about May 27, 2011, Faria Limited, LLC submitted a permit application to CT DEEP so that the company could legally discharge industrial wastewater from its New London facility into the New London POTW.
By July 2011, the company had installed a wastewater pretreatment system at its factory to pretreat the pollutants contained in its industrial wastewater prior to its discharge to the New London POTW.
FARIA pleaded guilty to one count of knowingly violating, or causing to be violated, the Clean Water Act, an offense that carries a maximum penalty of three years of imprisonment and a fine of not less than $5,000 but not more than $50,000 per day of the violation. Judge Thompson scheduled sentencing for October 6, 2014.
This matter has been investigated by the U.S. Environmental Protection Agency and the Connecticut Department of Energy and Environmental Protection. The case is being prosecuted by Assistant U.S. Attorney Hal Chen and Special Assistant U.S. Attorney Peter Kenyon.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Carter’s Executives and Portfolio Manager for New York Hedge Fund Sentenced to Federal Prison for Multi-Million Dollar Insider Trading ConspiraciesRead the Press Release
ATLANTA - Eric M. Martin, Mark Megalli, and Richard T. Posey have been sentenced to federal prison for their roles in insider trading conspiracies involving Carter’s, Inc. stock.
“Illegal insider trading undermines confidence in the nation’s stock markets. Today’s sentences are a step towards restoring that confidence. These sentences send a strong message to company insiders and investment industry professionals in this district and elsewhere that they are required to follow the same rules that govern regular investors, and that the consequences for failing to do so can be severe,” said United States Attorney Sally Quillian Yates.
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Those individuals who choose to ignore insider trading laws do so at the risk of becoming targets of federal investigations. The FBI will continue to provide substantial investigative resources toward such insider trading activities with the primary goal of maintaining a fair and equitable stock market for all.”
According to United States Attorney Yates, the charges and other information presented in court: Carter’s, Inc. is a major children’s clothing company headquartered in Atlanta, Georgia. Carter’s is a public company registered with the U.S. Securities & Exchange Commission (“SEC”), and its common stock is listed on the New York Stock Exchange.
Martin was employed as Carter’s Director and later Vice President of Investor Relations between 2003 and March 2009. In this capacity, Martin participated in and helped the company’s key executives prepare for Carter’s public disclosure of its quarterly and annual financial results at the end of each quarter or fiscal year. These and other duties afforded Martin regular access to material, non-public information about Carter’s upcoming earnings releases and other significant developments and transactions.
On a consistent basis between early 2005 and his separation from Carter’s in March 2009, Martin disclosed material, non-public information about Carter’s upcoming earnings releases and other developments to a former Wall Street analyst identified by the government as “Cooperator Number 1,” for the purpose of making illegal insider trades. Cooperator Number 1 repeatedly bought and sold Carter’s stock on the basis of this information, earning substantial illegal profits and illegally avoiding substantial losses. Cooperator Number 1 also tipped others, including Titan Capital Management LLC, a New Jersey hedge fund that had retained him as an outside consultant. Martin disclosed this and other material, non-public information in exchange for friendship, reciprocal stock tips about other public companies to which Cooperator Number 1 had access, and future business and networking opportunities.
After Martin separated from Carter’s in March 2009, Martin continued to obtain inside information in advance of Carter’s earnings releases and other events from Posey, who was his friend and former Carter’s co-worker. Posey was employed as a Vice President of Operations for various Carter’s brands and divisions and later as Vice President of Operations for the company’s wholesale sales business from in or about July 2002 until his termination in January 2013. Posey disclosed the information to Martin from early 2009 through July 2010 in exchange for friendship, reciprocal stock tips, and future business and networking opportunities.
Martin in turn traded on the information himself and also continued to provide the inside information to Cooperator Number 1 and others through July 2010. Further, in or about September 2009, Martin began providing the inside information to several financial institutions and investment firms that hired him as an outside consultant, including multibillion dollar New York hedge fund Level Global Investors LP. Martin’s contact at Level Global was Mark Megalli, who was employed as the portfolio manager for Level Global’s consumer sector. Megalli in turn caused Level Global to execute multimillion dollar trades in Carter’s stocks based on the inside information received from Martin from September 2009 through July 2010.
Martin and Posey also traded in Carter’s stock for their own benefit on the basis of material, non-public information in advance of Carter’s earnings releases and other events during their employment with the company. This trading took place during company-wide trading blackout periods that preceded the company’s quarterly and annual earnings releases, even though company policies prohibited company insiders from trading in Carter’s stock at those times.
Martin’s illegal trading and tipping of others between 2005 and 2010 resulted in over $7 million in insider trading gains and losses avoided for Martin and his downstream tippees. Posey’s illegal trading and tipping of Martin between 2009 and 2010 resulted in over $5 million in insider trading gains and losses avoided. Megalli’s illegal trading between 2009 and 2010 resulted in over $3 million in insider trading gains and losses avoided for Level Global.
- Martin, 44, of Roswell, GA, was sentenced to two years in prison to be followed by 3 years of supervised release, ordered to pay restitution in the amount of $950,000, and ordered to perform 80 hours of community service. Martin was convicted on these charges on December 18, 2012, after he pleaded guilty.
- Posey, 53, of Duluth, GA, was sentenced to one year, three months in prison to be followed by 3 years of supervised release, ordered to pay restitution in the amount of $750,000, and ordered to perform 80 hours of community service. Posey was convicted on these charges on June 19, 2013, after he pleaded guilty.
- Megalli, 42, of New York, NY, was sentenced to one year and one day in prison to be followed by 3 years of supervised release, ordered to pay restitution in the amount of $50,000, and ordered to perform 100 hours of community service. Megalli was convicted on these charges on November 14, 2013, after he pleaded guilty.
A fourth defendant, Steven E. Slawson, 67, of Lebanon, New Jersey, was indicted by the grand jury on May 20, 2014. Slawson, a co-founder of Titan Capital Management, is alleged to have traded on tips obtained from Cooperator Number 1 and later directly from Martin from early 2005 through July 2010. The case has been assigned to U.S. District Judge Richard W. Story for trial. A trial date has not yet been set.
The cases are being investigated by the Federal Bureau of Investigation.
Assistant United States Attorneys David M. Chaiken and Stephen H. McClain are prosecuting the cases.
The Atlanta Regional Office of the SEC has conducted a separate investigation into potential civil violations of the U.S. securities laws relating to insider trading in Carter’s stock. In connection with its investigation, the SEC has filed civil enforcement actions against multiple individuals.
Carter’s, Inc. is cooperating in the investigation.
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 including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.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/Felon Who Shot at Tennessee Highway Patrol Trooper Sentenced to Serve 210 Months in PrisonRead the Press Release
GREENEVILLE, Tenn. – On Jul. 7, 2014, Derrick Dakota Kitzmiller, 22, of Gray, Tenn., was sentenced to serve 210 months in prison by the Honorable J. Ronnie Greer, U.S. District Judge. Kitzmiller pleaded guilty in February 2014, to a federal grand jury indictment charging him with two counts of being a felon in possession of a firearm.
During the sentencing hearing Judge Greer found that Kitzmiller used firearms purchased in December 2012 to shoot at a Tennessee State Trooper in January 2013, in Washington County, Tenn. Jennifer Russell, who was also present at the shootout, pleaded guilty to buying the guns for Kitzmiller and is awaiting sentencing on August 4, 2014. Kitzmiller still faces related charges in the Criminal Court of Washington County, Tenn.
The indictment and subsequent conviction of Kitzmiller was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and Tennessee Highway Patrol Criminal Investigation Division (THP-CID). Assistant U.S. Attorney Robert M. Reeves represented the United States.
U.S. Attorney Bill Killian praised the investigative work of the ATF and THP-CID in this case. “This case highlights the dangers faced by law enforcement officers as a result of felons possessing firearms. The U.S. Attorney’s Office will continue to aggressively prosecute individuals who possess firearms illegally. We are all grateful that the state trooper involved in this incident was not killed or seriously injured,” stated Killian.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
Farrell Felon Involved in Shootout Admits Illegally Possessing WeaponRead the Press Release
PITTSBURGH - A Mercer County resident pleaded guilty yesterday in federal court to a charge of possession of a firearm by a convicted felon, United States Attorney David J. Hickton announced today.
Ralph Samuels, Jr., 50, of Farrell, Pa., pleaded guilty to one count before Senior United States District Judge Terrence F. McVerry.
In connection with the guilty plea, the court was advised that in the early morning hours of Oct. 3, 2012, Samuels, who has a prior felony conviction in Ohio, engaged in a gunfight with Daniel Odem, Jr. Both Odem and Samuels fired shots at each other, and both were wounded in the shootout. The shootout stemmed from a bar fight earlier that evening between Deandre Chambers and Corey Odem at Rockabilly’s Bar.
Judge McVerry scheduled sentencing for Oct. 10, 2014 at 10:30 a.m. The law provides for a total sentence of up to 10 years in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Pennsylvania State Police, Southwest Mercer County Regional police, and the Mercer County District Attorney conducted the investigation that led to the prosecution of Ralph Samuels.
Etna Man Distributed Child Pornography to Undercover FBI AgentRead the Press Release
PITTSBURGH – An Etna resident pleaded guilty on July 3, 2014, in federal court to charges of distribution of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
David L. Roethlein, 26, pleaded guilty to one count before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that Roethlein, on June 1, 2012, distributed over a peer-to-peer network to an agent of the Federal Bureau of Investigation in New Haven, Connecticut, working in an undercover capacity, videos and photographs in computer graphics files which depicted the sexual exploitation of prepubescent minor females.
Judge Conti scheduled sentencing for Oct. 17, 2014, at 3:30 p.m. The law provides for a total sentence of not less than five years nor more than twenty years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court detained Roethlein.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Allegheny County District Attorney’s Office conducted the investigation that led to the prosecution of Roethlein.
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.justice.gov/psc.
Detroit Tax Preparer Sentenced for Failing to Report Income from Tax PreparationRead the Press Release
The Justice Department, the Internal Revenue Service (IRS) and the Treasury Inspector General for Tax Administration (TIGTA) announced that Matthew Bender, of Detroit, was sentenced today by U.S. District Judge Julian Abele Cook Jr. to serve 48 months in prison and one year of supervised release.
On March 18, after a fourday trial, a jury in the U.S. District Court for the Eastern District of Michigan convicted Bender of obstructing the IRS and of nine counts of aiding and assisting in the preparation of false federal income tax returns. On June 4, another jury convicted Bender of failing to make a required appearance in court. Today’s sentencing is for all of Bender’s convictions.
According to court documents and evidence produced at trial, between 2006 and 2011, Bender prepared more than 3,000 tax returns and earned more than $500,000 in fees. However, Bender failed to report his own income from tax preparation to the IRS, either by filing false tax returns for himself or by failing to file his own tax returns at all. The evidence also showed that Bender caused inflated tax refunds for his customers by placing false deductions on their returns.
After the initial indictment prior to his first trial, Bender was ordered by Judge Cook Jr. to appear in court July 2, 2013, concerning his failure to comply with his conditions of release. Bender failed to appear in court on that date and was arrested in August 2013 by the U.S. Marshals Service after returning to Michigan from traveling to Ohio and Texas.
The case was investigated by special agents of IRS – Criminal Investigation and TIGTA. Trial Attorneys Jeffrey McLellan and Kenneth Vert of the department’s Tax Division prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found at the division website .
Detroit Man Pleads Guilty to Large-scale Heroin Distribution in HuntingtonRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who led a conspiracy with other individuals to distribute heroin in Huntington in 2013 and 2014 pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Christopher Lamarr-Shawn Harris, also known as “C” and “Caesar,” 27, pleaded guilty before Chief United States District Judge Robert C. Chambers to conspiring to distribute a kilogram or more of heroin.
From at least the summer of 2013 to April 2, 2014, Harris led a conspiracy along with others, including Denzell Lamar Bunkley, Jakaiser Wesley Jackson, and Brandon S. Keaton, to distribute heroin, primarily in West Huntington. Harris recruited co-conspirators and frequently arranged for the transportation of heroin from Detroit, Michigan, to Huntington. Harris utilized multiple locations to store, prepare and distribute heroin, including the Red Roof Inn Hotel located on Route 60 in Huntington and an apartment located at 1416 Jefferson Avenue in West Huntington. In addition to Bunkley, Jackson, and Keaton, Harris also recruited local residents to assist with drug distribution.
On December 31, 2013, officers with the Huntington Police Department’s Special Investigations Unit executed a search warrant at the Jefferson Avenue apartment. Officers seized approximately 413 grams of heroin and $12,349 in cash during the search. Officers also arrested Harris, Bunkley, and another individual who were located inside the apartment.
Harris was again arrested on February 20, 2014, in Ohio by the Ohio State Highway Patrol while travelling from Huntington to Detroit. During his arrest, officers seized a total of $24,930 in cash from Harris.
Harris was arrested for a third time on April 2, 2014, after officers received information that he was again present at the Red Roof Inn in Huntington distributing heroin. Officers executed a search warrant for two rooms at the hotel and seized approximately 192 grams of heroin along with $3,000 in cash. Harris, along with Jackson, had arranged for the transportation from Detroit of the heroin seized in the days prior to the search.
As part of his guilty plea, Harris admitted to arranging for the distribution of over one kilogram of heroin, primarily in West Huntington, during the conspiracy. Harris also admitted to serving as a manager and organizer of the conspiracy and maintaining a residence for the purpose of distributing heroin.
Keaton, of Huntington, previously pleaded guilty to his role in the conspiracy. Bunkley and Jackson, both of Detroit, also entered guilty pleas today.
Harris faces 10 years to life in federal prison when he is sentenced on October 6, 2014.
The Huntington Police Department Special Investigations Unit, the West Virginia State Police, the United States Drug Enforcement Administration, and the United States Marshals Service all participated in the investigation. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of heroin and prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiates, including heroin, in communities across the Southern District.
Dallas Lawyer Pleads Guilty to Criminal Copyright Infringement Related to Investor Fraud Case Involving Dynasty Spirits, Inc.Read the Press Release
DALLAS — Andrew Lee Siegel, a Dallas attorney, appeared this morning before U.S. Magistrate Judge Paul D. Stickney and pleaded guilty to an information charging one count of felony criminal infringement of a copyright, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Siegel, 54, admitted committing the criminal infringement by unlawfully reproducing the writings, letterhead and logos of The Northern Trust Company and the Federal Reserve Bank in several fraudulent and fictitious communications with the intent to deceive the owners of Dynasty Spirits, Inc.
In fall 2010, Siegel established Dynasty Spirits, LLC, and later Dynasty Spirits, Inc. and Speak Easy Distillers, LLC, to facilitate the production and bottling of “Nue Vodka.” In February 2012, Siegel created a private placement memorandum for Dynasty Spirits, Inc. (Dynasty) authorizing the sale of up to $2,000,000 of common stock shares by Dynasty.
From September 2011 through July 2012, Siegel collected approximately $1,595,000 from 35 investors for the sale of Dynasty stock certificates. Siegel concealed from Dynasty owners that he unlawfully used up to $410,000 of that amount for his personal benefit, which he had collected from no more than six of the 35 investors.
For example, on April 11, 2012, Siegel unlawfully used $175,000 previously tendered to Dynasty in order to issue himself 700,000 shares of Dynasty stock on June 15, 2012. As part of a civil settlement in June 2013, Siegel agreed to release and surrender any claim to the 700,000 shares.
In November 2012, Dynasty owners suspected Siegel had unlawfully used investor funds, and when confronted, Siegel falsely stated that he had attempted to wire $185,000 in investor funds to Dynasty but the transfer was misrouted. The following month, Siegel created fraudulent and fictitious emails to Dynasty owners representing he attempted to wire transfer $185,000 from his bank account to the Dynasty owners’ bank account. Some of the fraudulent emails Siegel created contained copyrighted writings and the logo of The Northern Trust Company.
Later that month, Siegel created another fraudulent email to Dynasty owners that contained copyrighted writings, letterhead and logos of the Federal Reserve Bank Services. In fact, Siegel used several fraudulent and fictitious emails that falsely represented to Dynasty owners that he was in contact with The Northern Trust Company and the Federal Reserve Bank Services in connection with his “attempted” $185,000 wire transfer to the Dynasty owners. Siegel engaged in this fraudulent conduct to deceive the owners of Dynasty and convince them that he was making a good faith effort to transfer investor funds to the investors of Dynasty.
In June 2013, Siegel and Dynasty reached a civil settlement in connection with various civil claims and counterclaims arising from Siegel and Dynasty’s business relationship. That settlement was before the commencement of the federal investigation, but only after Dynasty discovered and confronted Siegel about his unlawful use of investor funds.
Siegel faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. He will remain on bond pending sentencing set for October 29, 2014.
The FBI is investigating, and Assistant U.S. Attorney David L. Jarvis is in charge of the prosecution.
Columbus Man Sentenced to 8 Years for Distributing Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Edward J. Johnson, age 41 of Columbus, Nebraska, was sentenced in the United States District Court in Omaha for the distribution and possession of child pornography. The Honorable Laurie Smith Camp, Chief Judge, sentenced Johnson to 96 months imprisonment. There is no parole in the federal system. After his release from federal prison Johnson will begin a fifteen year term of supervised release. Johnson will be required to register with the Sex Offender Registry upon release.
A public website reported that an Internet Protocol (IP) address in Columbus, Nebraska, had displayed two images of child pornography on the website. An officer with the Nebraska State Patrol, acting in an undercover capacity and posing as a teenage girl, engaged in a series of chats with Johnson. Johnson sent additional images of child pornography to the undercover officer on July 23, 2013.
A search warrant was served on Johnson’s home in Columbus, Nebraska on August 27, 2013. He admitted sending the images of child pornography to the undercover officer. Forensic review of the computer revealed 200 videos of child pornography. The images included bondage and prepubescent children involved in a variety of sexual acts with adults and other children.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
College Park Police Officer Sentenced to Federal Prison for Illegally Obtaining U.S. CitizenshipRead the Press Release
ATLANTA – Devon Campbell, a/k/a Wilmott Alvin Livingston, a former Jamaican police officer who illegally entered the United States and then became a U.S. citizen and a College Park police officer, was sentenced to ten months in prison for committing immigration fraud.
“For more than a decade, Campbell violated this country’s immigration laws and deceived this nation’s immigration authorities,” said United States Attorney Sally Quillian Yates. “We require honesty and integrity from our police officers, and Campbell’s fraud on the immigration system violated this trust.”
“The defendant used his fraudulently obtained U.S. citizenship to become a police officer in this country, making a mockery of the very laws he was sworn to uphold,” said Brock D. Nicholson, special agent in charge of Homeland Security Investigations in Atlanta. “U.S. citizenship is eagerly sought by millions of people across the world, and HSI special agents work hard to maintain the integrity of our system by identifying those like Mr. Campbell who seek to gain it through fraud.”
According to United States Attorney Yates, the charges, and other information presented in court: In 2000, Campbell lived in Jamaica, where he had previously been employed as a police officer with the Jamaican Constabulary Force. On November 7, 2000, Campbell left Jamaica and entered the United States using a Jamaican passport bearing the fabricated name Wilmott Alvin Livingston and a false date of birth.
While in the United States, Campbell lived under the Livingston alias. On April 19, 2001, Campbell (using the Livingston alias) married a United States citizen in Jonesboro, Ga. Shortly thereafter, Campbell (under the Livingston name) petitioned to become a Lawful Permanent Resident. On August 13, 2004, U.S. immigration authorities granted the application and Campbell (under the Livingston name) became a permanent resident of the United States.
On October 15, 2007, Campbell, using the Livingston name and date of birth, filed an Application for Naturalization with U.S. immigration services. Although the application required Campbell to list any previously-used names, Campbell marked that section with the letters “N/A,” meaning ‘Not Applicable.’ Campbell also signed the form under penalty of perjury using the fabricated name Wilmott Alvin Livingston. On April 11, 2008, Campbell (under the Livingston alias) became a naturalized U.S. citizen. Later that month, Campbell applied for and was subsequently issued a U.S. passport. On the passport application, Campbell listed his false name and date of birth. Campbell has used his fraudulently-obtained passport to travel back and forth to Jamaica.
Two months after becoming a U.S. citizen, on June 12, 2008, Campbell (under the Livingston identity) and his wife divorced. Eight days later, Campbell (under the Livingston identity) married another woman.
Since 2011, Campbell has served as a police officer with the College Park Police Department. In obtaining his Georgia Peace Officer Standards and Training certification, Campbell falsely claimed to be a naturalized United States citizen and submitted an unlawfully obtained Certificate of Naturalization.
On April 8, 2014, Campbell, 46, of Ellenwood, Ga., pleaded guilty to one count of Unlawfully Procuring Citizenship or Naturalization and one count of Using a Passport Secured by False Statements.
As part of his conviction, Campbell’s United States citizenship has been revoked. In addition, after completing his prison sentence, Campbell will be removed from the United States.
This case was investigated by Homeland Security Investigations.
Assistant United States Attorney Jeffrey W. Davis prosecuted the case.
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/.
Charleston Man Pleads Guilty to Heroin and Crack Cocaine ChargesRead the Press Release
CHARLESTON, W.Va. – Jonathan Kennedy, 33, pleaded guilty today in federal court to two drug felonies – one related to his travel between Detroit, Michigan and Charleston, West Virginia, in aid of distributing heroin, and the second based on his use of a communication facility, his cellular telephone, in committing the crime of distribution of crack cocaine -- both in Charleston, West Virginia, where he resides. In June 2014, Kennedy was indicted by a grand jury on one count of distributing heroin, one count of distributing crack cocaine, one count of conspiracy to distribute heroin, one count of conspiracy to distribute oxymorphone and oxycodone, one count of being a felon in possession of a firearm, and one count of tampering with a witness. Kennedy faces up to nine years’ imprisonment when he is sentenced on October 14, 2014.
This case was investigated by the Charleston Police Department. United States District Judge Thomas E. Johnston conducted today’s guilty plea hearing.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill and heroin trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Carthage, Texas, Resident Sentenced to 10 Years in Prison for Enticing an Underage Girl to Have SexRead the Press Release
SHREVEPORT, La. – A Carthage, Texas, man was sentenced to 120 months in prison and five years of supervised release for attempting to have sex with an underage girl, U.S. Attorney Stephanie A. Finley announced today.
Sammy D. Mosley, 39, of Carthage, Texas, was sentenced by U.S. District Judge S. Maurice Hicks Jr. for one count of attempting to entice a minor to engage in criminal sexual activity. According to evidence presented at the guilty plea on March 13, 2014, Mosley responded to an online advertisement July 24, 2013 soliciting a mother and daughter for sex. Mosley began to correspond with a law enforcement officer posing as a 13-year-old girl. Mosley negotiated prices for sex and asked for nude pictures. He was arrested on August 1, 2013 at a meeting place in Bossier City, La., where he had agreed to meet the girl and her mother.
The FBI and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case. This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.
Those concerned may leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Shreveport FBI office number is (318) 861-1890.
Buffalo Man Pleads Guilty in Towing Scandal Involving Buffalo Police OfficersRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Christopher Mahoney, 30, pleaded guilty before U.S. District Court Judge Richard J. Arcara, for conspiring to pay bribes to City of Buffalo police officers. The charges carry a maximum sentence of five years in prison, a fine of $250,000 or both.
“Today’s conviction for bribery exposes a ‘pay to play’ scheme in the Buffalo towing service industry,” said U.S. Attorney Hochul. “As admitted by this defendant, certain police officers were paid in exchange for notification and call-out to motor vehicle accident scenes. This Office will bring to justice those who would corrupt a branch of government or seek to create an uneven playing field through payment of bribes.”
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the prosecution, stated that James Mazzariello, Jr. owned and operated Jim Mazz Auto, Inc. and National Towing, Inc. The companies were involved in all aspects of the automobile towing and repair business, including collision repair work, mechanical repair work, towing and storage work, and the sale of used automobiles. Adam Mazzariello, the son of James Mazzariello, Jr., supervised the towing services aspect of the businesses. Christopher Mahoney served in a managerial capacity for each of the businesses.
Mahoney admitted that between January 2009 and May 2012, Jim Mazz Auto tow truck operators, at the direction of James Mazzariello, Jr. and Adam Mazzariello, made payments to certain City of Buffalo police officers for their assistance in enabling Jim Mazz tow truck operators to tow motor vehicles damaged in accidents in the City of Buffalo. The tow truck operators made these bribe payments from their own personal funds and subsequently sought reimbursement from James Mazzariello, Jr., Adam Mazzariello and Christopher Mahoney. James Mazzariello, Jr. directed and authorized Christopher Mahoney to make reimbursement payments to the tow truck operators. Mahoney made reimbursement payments to tow truck operators on a regular basis and often times used cash from the Jim Mazz Auto cash drawer to make such payments.
While the plea agreement does not specify the exact number of bribe payments made by the tow truck operators to Buffalo Police Officers, the government, through its investigation and prior to the time defendant Mahoney expressed a desire to plead guilty, substantiated and examined, in detail, 19 different bribe payments made by tow truck operators. Approximately $500 in payments were made to Buffalo police officers by tow truck operators for access to the tows of the 19 accidents examined. The gross revenue Jim Mazz Auto derived from making such bribe payments totaled $43,022.74. The gross revenue consisted of payments made to Jim Mazz Auto for towing, as well as for mechanical and collision repair work.James Mazzariello, Jr. and Adam Mazzariello are under indictment for conspiring to pay bribes to City of Buffalo police officers. James Mazzariello, Jr. is also charged with filing false corporate tax returns and false personal tax returns for calendar years 2009 and 2010.
The plea is the culmination of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office, the New York State Department of Motor Vehicles Criminal Division, under the direction of Owen McShane, Director of Investigations, the New York State Department of Taxation and Finance Criminal Investigations Division, under the direction of Upstate Chief of Investigations Pat Simet, the New York State Department of Financial Services Criminal Investigations Unit, under the direction of Director Frank Orlando, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Mahoney is scheduled to be sentenced on October 20, 2014 at 1:00 p.m. before Judge Arcara.Bluefield, W.Va Resident Sentenced to Prison for Role in Nigerian Fraud SchemeRead the Press Release
ABINGDON, VIRGINIA – A West Virginia woman, who was part of a Nigerian wire fraud scheme, was sentenced yesterday in the United States District Court for the Western District of Virginia in Abingdon.
Audrey Elaine Elrod, 47, of Bluefield, W.Va., was sentenced to imprisonment for a term of 52 months. Elrod previously pled guilty to an Information charging her with one count of structuring transactions to avoid reporting requirements and one count of conspiracy to commit wire fraud.
At sentencing, Elrod testified that an individual who identified himself as “Duke McGregor” befriended her on Facebook. She developed a romantic attachment with “Duke” through instant messaging. “Duke” eventually asked her to send money to his friend, “Sinclair,” in Nigeria. Over time, “Duke” caused hundreds of thousands of dollars to be sent to accounts controlled by Elrod. These amounts were unwittingly sent to Elrod by victims of the scheme. Elrod then structured the money out of her accounts, keeping the amounts below $10,000 to avoid the filing of Currency Transaction Reports with the IRS. She then sent the money by Western Union and MoneyGram to accounts in Nigeria. Elrod played an important role in the scheme because using her accounts disguised from the victims the fact that their money was ending up in Nigeria. Between March 2012 and July 2013, Elrod received $ $446,927.59 in wire transfers into bank accounts she controlled. Between July 2012 and July 2013, Elrod structured $411,411.20 in cash transactions in an effort to hide her activity from the government.
Elrod was arrested on federal charges on April 15, 2013. After the Court released her on bond, Elrod continued to receive and send money as part of the fraud scheme. She then absconded to Charlotte, North Carolina, and continued the scheme there. On August 29, 2013, she was apprehended in Charlotte and has remained in federal custody ever since.
The investigation of the case was conducted by the Internal Revenue Service, Criminal Investigations, the United States Marshal Service, the Russell County Sheriff’s Office, the Bluefield Virginia Police Department, and the Bluefield West Virginia Police Department. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Bank Robber Sentenced to over 10 Years in Prison for Five RobberiesRead the Press Release
Admitted Committing Two Additional Bank Robberies
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Rodney Scott Bush, age 47, of Fort Washington, Maryland today to 125 months in prison, followed by three years of supervised release, for conspiracy to commit bank robbery and five bank robberies. As part of his plea agreement, Bush also admitted committing two additional bank robberies.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Anne Arundel County Police Chief Kevin Davis; and Chief Mark A. Magaw of the Prince George’s County Police Department.According to his plea agreement, from December 8, 2012 through July 17, 2013, Bush committed seven bank robberies, stealing a total of $38,894. In each robbery, Bush handed the teller a note demanding money. Most of the notes also stated that Bush had a gun or threatened some other harm and Bush often implied that he had a weapon. The banks were located in Upper Marlboro, Lanham, Severna Park, Gambrills, Laurel, Bowie, and Glen Burnie, Maryland.
Moments after the robbery in Glen Burnie on July 17, 2013, an Anne Arundel County Police officer responding to the bank robbery saw Bush in the passenger seat of a vehicle removing the distinctive sweater that he wore during the robbery. The vehicle was being driven by a woman, later identified as Bush’s girlfriend, Jacqueline Isaacs. The officer attempted to conduct a traffic stop, but Isaacs sped off and led police on a high speed pursuit. Isaacs and Bush continued to flee from the officers for more than ten miles, eventually crashing into a van. Officers arrested Bush and Isaacs who were taken to the hospital and treated for injuries sustained during the crash.
The vehicle was searched and officers recovered the mobile phones used by Bush and Isaacs, the demand note, shirt and glasses worn by Bush during the robbery, and cash stolen from the bank.
Jacqueline Isaccs, age 56, also of Fort Washington, pleaded guilty to the July 17, 2013, bank robbery and was sentenced to 37 months in prison.
United States Attorney Rod J. Rosenstein praised the FBI, Anne Arundel County Police Department and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
Attorney General Holder Urges International Effort to Confront Threat of Syrian Foreign FightersRead the Press Release
In a speech Tuesday, Attorney General Eric Holder called Syria "a cradle of violent extremism" and urged multilateral law enforcement action to confront the security threat posed by radicalized individuals from the United States and Europe traveling there.
An estimated 7,000 foreign fighters, including dozens of Americans, have streamed into Syria to participate in the conflict there. These individuals can link up with violent extremist groups operating in the region and then seek to return to their home countries with training in how to carry out violence on a large scale. Attorney General Holder said the U.S. and its allies have a mutual interest in confronting this trend, observing that the ability of citizens of European nations to travel, visa-free, to the United States--and likewise, U.S. citizens' ability to freely visit Europe--means that "the problem of fighters in Syria returning to any of our countries is a problem for all of our countries."
Holder called for a four-part strategy to counter the threat. The approach includes enacting statutes that allow governments to prosecute planning activities undertaken by radicalized extremists seeking to aid terrorist groups. Holder also pointed to the Federal Bureau of Investigation's undercover operations as a successful method for identifying violent extremists and disrupting their plots. He also called for more information sharing among nations about travelers to Syria, and for expanded outreach to key communities in order to prevent individuals from becoming radicalized in the first place.
"In the face of a threat so grave, we cannot afford to be passive," Holder said. "Rather, we need the benefit of investigative and prosecutorial tools that allow us to be preemptive in our approach to confronting this problem. If we wait for our nations’ citizens to travel to Syria or Iraq, to become radicalized, and to return home, it may be too late to adequately protect our national security."
The Attorney General spoke in Oslo at the U.S. ambassador's residence. The remarks followed one-on-one meetings earlier Tuesday with both the Prime Minister of Norway and the country’s Minister of Justice. In 2013, Norway amended its laws to criminalize preparatory acts to terrorism, including training for terrorism, preparation for terrorism and participation in a terrorist organization. In addition, last month the Norwegian government announced a 30-point "Action Plan Against Radicalism and Violent Extremism" that focuses on civic engagement and detection of threats. Holder praised both steps in his remarks Tuesday and said the United States looked forward to continued cooperation with Norway on these matters.
Later this week, Attorney General Holder travels to London for the Sixth Annual Meeting of the Quintet of Attorney Generals from the United States, United Kingdom, Canada, Australia and New Zealand. The issue of Syrian foreign fighters is expected to be part of those discussions as well.
A copy of the Attorney General's remarks appears below.
Thank you for those kind words – and thank you all for such a warm welcome. Ladies and gentlemen; distinguished guests; leaders and citizens – it is a pleasure to be in Norway. And it’s a great privilege to be in the beautiful city of Oslo today.
I’d like to thank the Norwegian government – and especially Prime Minister [Erna] Solberg and Minister of Justice [Anders] Anundsen, with whom I met earlier today – for their hospitality. I’d also like to recognize our Charge, Julie Furuta-Toy, and the hardworking men and women of the U.S. Embassy for bringing us together – and for all that they do, every day, to advance our shared interests.
It’s an honor to join them – and to stand with all of you – in strengthening the ties that bind our nations together; in discussing some of the most critical challenges the international community must confront; and in reaffirming our mutual commitment to the values we share, and the high ideals – of democracy, liberty, and equal justice under law – that have defined our nations’ friendship over the past two centuries.
That friendship, and those values, have deep roots. Norwegian-Americans have played an important role in the development of our country. And your citizens and values have had an impact around the world. Two hundred years ago, Norway ratified a constitution that asserted certain essential and immutable rights. Through centuries of triumph and challenge, our people and our governments have both been guided by a shared understanding that “all people are born free and equal.”
Today, Norway is a leader in extending worldwide the promise of equality and justice, through its own development work overseas, and through its support of international institutions. And Norway leads global efforts to address urgent threats – most recently in Syria, where Norwegian and American personnel are working side-by-side to rid that country of chemical weapons. Around the world, Norway is recognized as a champion of democracy and human rights. And, for decades, you’ve been leading by example.
After all, as history teaches us – and as you’ve seen here in Norway and we in the United States – progress is not inevitable. And our democratic values, our open societies – and our commitment to tolerance and inclusion – must be continuously protected against agents of intolerance, extremism, and hate.
Particularly when hatred and extremism take expression in acts of violence and terror, we must be resolute in our protection of equal rights, democracy, and the rule of law. And we must be both innovative and aggressive in combating violent extremism in all its forms.
It was just three years ago this month that Norway endured devastating attacks on the government quarter of Oslo and a Workers’ Youth League summer camp – heinous acts that shocked citizens everywhere, and earned swift condemnation and sympathy from around the world – as President Obama stated, our hearts went out to you. Horrific crimes like these are not only terrible tragedies for the individuals and the nations targeted; they test our fortitude and challenge the very foundations of who we are. Yet Norway has not faltered or changed its values – and is an example for the world in this regard as well.
Like Norway, the United States is all too familiar with domestic threats, having suffered deadly attacks on our soil – including against government buildings, places of worship, and sporting events. These attacks, like the attacks you suffered here in Norway, share a common theme: they are attacks on tolerance, in the name of violent extremist ideologies.
Under the Obama Administration, while we have acted to protect our country and our allies, we have also redoubled our commitment to civil rights and to tolerance. This is what violent extremists most fear, for their goal is to undermine open societies. At the same time, we also have joined with our international partners to ensure that there is no impunity for those who seek to commit terrorist attacks. Now, Norway, the United States, and countries around the world face a new threat – the possibility that violent extremists fighting today in Syria, Iraq, or other locations may seek to commit acts of terror tomorrow in our countries as well.
U.S. intelligence officials estimate that nearly 23,000 violent extremists are currently operating in Syria. Among these are over 7,000 foreign fighters – among whom are dozens of Americans, a number that is growing.
We have a mutual and compelling interest in developing shared strategies for confronting the influx of U.S.- and European-born violent extremists into Syria. And because our citizens can freely travel, visa-free, from the U.S. to Norway and other European states – and vice versa – the problem of fighters in Syria returning to any of our countries is a problem for all of our countries.
This is a global crisis in need of a global solution. The Syrian conflict has turned that region into a cradle of violent extremism. But the world cannot simply sit back and let it become a training ground from which our nationals can return and launch attacks. And we will not.
In the face of a threat so grave, we cannot afford to be passive. Rather, we need the benefit of investigative and prosecutorial tools that allow us to be preemptive in our approach to confronting this problem. If we wait for our nations’ citizens to travel to Syria or Iraq, to become radicalized, and to return home, it may be too late to adequately protect our national security.
That’s why we need to adopt a multilateral four-pronged strategy to combat this threat, to counter violent extremism in all its forms, and to keep our citizens safe.
The first element of our united approach must be to ensure that there are laws in our systems that enable governments to properly police that threat. In its Rabat Memorandum, the Global Counterterrorism Forum – a group of 30 countries from around the world, working in partnership with the UN – stated that “Criminalizing preparatory acts, such as conspiracy, terrorist fundraising, terrorist recruitment, planning and training, particularly when a terrorist attack has not yet been carried out, is vital in an effective criminal justice preventive approach to counterterrorism.” In this regard, the U.S. relies on a statute that criminalizes the providing of “material support to terrorist organizations.” Our material-support law, which was originally enacted in 1994 and amended after the attacks in New York on September 11, 2001, bars not only contributions of personnel, cash, weapons and other tangible aid to designated terrorist organizations, but also intangible means of support – such as training, service, and expert advice or assistance. Similarly, in 2013, Norway amended its laws to criminalize preparatory acts to terrorism, including training for terrorism, preparation for terrorism and participation in a terrorist organization Likewise, in 2012, France enacted a new statute that enables prosecutors to charge individuals with “criminal association with the intent to commit terrorist acts.” Earlier this year, French authorities sentenced the nation’s first three defendants under this new law; all three were plotting to travel to Syria. Today, I urge governments around the world to consider similar measures that criminalize the preparatory acts committed by those with terrorist plans.
The second part of our comprehensive strategy looks to ensure that we have in place law enforcement investigative tools and techniques that are both effective and protective of individual rights and the rule of law. In this regard, we have found undercover operations – which the Federal Bureau of Investigation pioneered in fighting transnational organized crime – to be essential in fighting terrorism as well. In the United States, the FBI has already conducted undercover operations that have identified individuals with intentions to travel to Syria. These operations are conducted with extraordinary care and precision, ensuring that law enforcement officials are accountable for the steps they take – and that suspects are neither entrapped nor denied legal protections. Here, too, the Global Counterterrorism Forum’s Rabat Memorandum calls for such techniques to be applied in countries around the world: one of the “good practices” it advocates is that countries “Provide a Legal Framework and Practical Measures for Undercover Investigations of Terrorist Suspects or Organizations.”
Third: in order to further our investigative capabilities, we must strengthen international cooperation, in a variety of respects. As an initial matter, we must prioritize the sharing of traveler information as a potential way to prevent would-be foreign fighters from going to Syria in the first place – and tracking those who come back. The United States is committed to doing its part in this regard. As we speak, through law enforcement agencies such as the FBI, U.S. authorities are working with Interpol to disseminate information on foreign fighters. We encourage other countries to use Interpol – and Interpol notices – to combat the foreign-fighter phenomenon. And we are actively supporting Interpol’s Fusion Cell, which focuses on information-sharing relating to foreign fighters. In fact, the U.S. has provided personnel, including FBI agents, to support this specialized office.
While we are committed to ensuring that we protect the safety of our fellow citizens, we are also committed to protecting their privacy. Alongside policymakers in Brussels, we’re also working to attain an “umbrella” data-sharing agreement between the United States and the European Union, that would strengthen the already strong protections that are presently in existence and that ensure that law enforcement information is shared effectively, and in accordance with data privacy principles. This agreement will guarantee that there will be no diminishment of the key exchanges of law enforcement information, including terrorism information, that is critical to the safety of citizens in Europe, the U.S., and around the world. And as a step to advance this endeavor, last month – in Athens – I announced a United States commitment that the Obama Administration would seek legislation to create the ability – for non-U.S. persons – to seek judicial redress for access and rectification, and for willful or intentional disclosure, of law enforcement information transferred to the United States. This is an historic commitment by the United States to extend privacy protections beyond U.S. persons in this context. It is imperative that we reach an “umbrella” agreement in this regard as soon as possible. The time for posturing has long past. It is time for nations that have long shared fundamental views about privacy to act together.
Countries must also effectively use mutual legal assistance and extradition to counter foreign fighters. Here, too, the Rabat Memorandum of the Global Counterterrorism Forum is instructive: “Because terrorism often transcends national boundaries, timely and effective international cooperation is indispensable to a criminal justice response to terrorism.” Through international mutual legal assistance, the U.S. Department of Justice has provided evidence to countries for use in prosecutions of terrorist organizations – including terrorist groups that were recruiting others to fight in Syria. We continue to assist foreign partners around the globe by acting on mutual legal assistance requests and providing evidence to support those criminal investigations and prosecutions. And we believe it’s critical that countries develop their abilities to effectively engage in mutual legal assistance – including by strengthening their central authorities – so that we can work together to counter this shared threat.
International cooperation also means working together to build the capacity of other nations, as Norway does in so many different contexts. Norwegian and U.S. Department of Justice legal advisors have worked together to build Rule of Law in Georgia and Moldova. And to enhance similar efforts on a global scale, the U.S. Department of Justice is providing capacity-building assistance to help our partners build fair and transparent justice systems that will allow their countries to confront transnational crime and terrorism, including the problem of foreign fighters. Applying the standards of the UN Counterterrorism Treaties, and the best practices of the Rabat Memorandum, our capacity-building work, and that of our foreign partners, has helped advance laws permitting police and prosecutors to more effectively investigate and prosecute suspected foreign fighters, within the Rule of Law – leading to the disruption of foreign fighters and the dismantlement of organizations that recruit would-be fighters to travel to Syria. Through ongoing programs in places such as the Balkans, Africa, and elsewhere, we continue to work with international partners to help them stem the flows of foreign fighters; to use the tools they have to more effectively impede their movements; and to assist in the investigation and prosecution of foreign fighters once captured.
Today, I challenge additional nations to step forward, as Norway has. Commit to robust, and privacy-protective, data-sharing in service of our mutual security. Pledge support for Interpol’s “Transnational Fighter Initiative.” Support mutual legal assistance and capacity building. And urge others to do their part by participating fully in these efforts – which will be effective only to the extent that they are as comprehensive as possible.
The fourth and final element of our strategy is founded on the notion that strong laws, effective investigative tools, and robust information-sharing must be matched with public engagement – and extensive community outreach. We must seek to stop individuals from becoming radicalized in the first place by putting in place strong programs to counter violent extremism in its earliest stages. In my time here in Norway, I have had the chance to learn about – and have been deeply impressed by – Norway’s Action Plan Against Radicalization and Violent Extremism.
Indeed, I have found it critical to engage in international exchanges with my counterparts regarding how we can do better on combating radicalization, and to learn from each other. I will take home with me important lessons from Norway’s experience. These lessons will help us implement our own National Strategy and Strategic Implementation Plan, which is led by the Justice Department, the FBI, the Department of Homeland Security, and the National Counterterrorism Center.
Our approach depends on building mutual trust and respect with members of communities across the country – so that we can understand their needs and concerns and to foster open dialogue with community leaders and citizens. This enables us to work with them to mitigate tensions and identify emerging threats.
At the heart of these engagement efforts in the United States are our United States Attorneys, the chief federal prosecutors in each of the jurisdictions they serve. Since 2012, our U.S. Attorneys have held or attended more than 1,700 engagement-related events. And the resulting relationships have not only served to build trust. They have also produced valuable cooperation, in some cases spurring community members to alert law enforcement about individuals who show an inclination to turn to violence.
Across the United States and in countries around the world, such counter-radicalization programs show significant promise. They serve our broader aim of fostering tolerance, inclusion, and understanding – which are themselves powerful tools against violent extremism. But ultimately, our goal must be not just to fight radicalization or apprehend dangerous individuals. At its core, this work is about forging more just and open societies – and building a more peaceful world.
That’s why it’s especially fitting that we recommit ourselves to these efforts here in Oslo – where so many of mankind’s highest ideals and aspirations have been recognized. For more than a century, this city has welcomed some of the most devoted peacemakers the world has ever known – from the Reverend Dr. Martin Luther King, Jr., who advocated for “a more noble civilization” in the midst of America’s long night of racial injustice; to Nelson Mandela, who insisted that “an injury to one is an injury to all.”
Throughout history, these pioneers of peace have called us to recognize that our capacity for courage has no limit. The struggle for human rights, civil rights, and equal justice knows no borders or boundaries. Yet their stories also remind us that, for all the progress that they have made possible, our journey still stretches beyond the horizon. And our work has no end.
You know as well as anyone that the work ahead will not be easy. None of the challenges we face are simple or straightforward. We will suffer setbacks. But so long as we remain committed to standing together, working together, and striving together – as people of courage, as leaders of conviction, and as nations of high ideals – I cannot help but feel optimistic about where our joint efforts will lead us. I thank you all, once again, for your leadership, your collaboration, and your friendship. And I look forward to everything the United States and the Kingdom of Norway will achieve together in the months and years to come.
Thank you.
Army National Guard Soldier Pleads Guilty in Connection with Bribery and Fraud SchemeRead the Press Release
A soldier of the U.S. Army National Guard pleaded guilty today for his role in a wide-ranging corruption scheme involving fraudulent recruiting bonuses from the Army National Guard Bureau.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Robert Pitman for the Western District of Texas made the announcement.
Sergeant First Class Eduardo Ruesga-Larracilla, 41, of San Antonio, Texas, pleaded guilty today to one count of conspiracy to commit bribery and wire fraud, and one count of bribery of a public official.
The case against Ruesga arises from an investigation that has led to charges against 26 individuals, 24 of whom have pleaded guilty.
According to court documents, in approximately September 2005, the National Guard Bureau entered into a contract with Document and Packaging Broker Inc. (Docupak) to administer the Guard Recruiting Assistance Program (G-RAP). The G-RAP was a recruiting program that offered monetary incentives to soldiers of the Army National Guard who referred others to join the National Guard. Through this program, a participating soldier could receive up to $2,000 in bonus payments for a referral. Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account. To participate in the program, soldiers were required to create online recruiting assistant accounts.
Ruesga admitted that between approximately January 2010 and approximately October 2011, he conspired with a recruiter and paid him for the personal information of potential Army National Guard soldiers. Ruesga further admitted that, in order to obtain fraudulent bonuses, he used the personal information for these potential soldiers fraudulently to claim that he was responsible for referring these soldiers for enlistment in the National Guard.
Ruesga is scheduled to be sentenced on Oct. 9, 2014 before U.S. District Judge Orlando L. Garcia in San Antonio, Texas.
This case is being investigated by the San Antonio Fraud Resident Agency of the Army Criminal Investigation Command’s Major Procurement Fraud Unit. The case is being prosecuted by Trial Attorneys Sean F. Mulryne, Heidi Boutros Gesch, and Mark J. Cipolletti of the Criminal Division’s Public Integrity Section.Apollo E. Nida Sentenced for Conspiring to Commit Mail, Wire and Bank FraudRead the Press Release
Nida Used Fake Collection Agencies And Databases To Target Identity Theft Victims
ATLANTA - Apollo E. Nida, 35, of Atlanta, Ga., was sentenced today for conspiring to commit mail, wire and bank fraud in a complex fraud scheme which spanned over four years and harmed over 50 victims.
“Identity theft continues to be a focus for my office as thieves continue to refine devious schemes to exploit our citizens,” said United States Attorney Sally Quillian Yates. “This defendant organized two separate fake collection agencies, used them to harvest data from databases like Equifax and LexisNexis, and then deployed that data in identity theft attacks tailored to the vulnerabilities and characteristics of each victim.”
“Today’s sentencing exemplifies impartial justice regardless of economic class or perceived celebrity status. Nida’s sentence should be an eye opener for other like-minded criminals who scheme to steal victims’ identities, defraud them and ignore the consequences of their actions,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.According to United States Attorney Yates, the charges and other information presented in court: Beginning in August 2009, Nida, 35, of Atlanta, Ga., and others obtained stolen checks by stealing them or buying them from other criminal associates. The stolen checks involved in the scheme included United States Treasury Checks, as well as checks stolen from the pension fund of Delta Airlines. Additionally, the conspirators obtained funds by filing fraudulent tax returns with the Internal Revenue Service and making fraudulent claims against the U.S. Department of Housing and Urban Development, and at least eleven states, all in the names of victims whose identities had been stolen.
Many of these checks were mailed to a large network of mailboxes rented by the conspirators at UPS Stores in the Northern District of Georgia and throughout the nation, for eventual forwarding to the conspirators. The conspirators also obtained fraudulent auto loans secured by vehicles that they had no ownership interest in whatsoever. To convince banks to issue these loans, Nida and his conspirators created fake documents and websites appearing to belong to legitimate auto dealerships.
Once the conspirators obtained the stolen checks, they laundered them through numerous victim financial institutions. Often, the conspirators laundered the checks by opening bank accounts in the names of the payees listed on the face of the checks. This involved impersonating each payee and stealing his or her identity. The conspirators prepared for these impersonations by researching their victims using databases like LexisNexis and Equifax, to which they obtained access through fake collection agencies they had opened as part of the scheme. Sometimes, the conspirators negotiated checks by laundering them in bulk through accounts which appeared to belong to legitimate businesses, such as one in the name “Signature Tax Collections.”
The illegal conduct ended only when agents of the U.S. Secret Service confronted Nida and seized his laptop computer, pursuant to a search warrant, on September 13, 2013.
Nida has been sentenced to 8 years in prison to be followed by 5 years of supervised release. U.S. District Court Judge Charles A. Pannell, Jr. also ordered Nida to pay restitution to the victims of his offenses, and scheduled a separate hearing to take place on July 17, 2014, to calculate the restitution amount. Nida was convicted on May 6, 2014, when he pleaded guilty.This case was investigated by the United States Secret Service and the Georgia Governor’s Office of Consumer Protection.
Assistant United States Attorney Alana R. Black prosecuted the case.
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/.
Angel Negron-Beltran Sentenced to 38 Months in Prison for Conspiracy to Possess with Intent to Distribute CocaineRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez today sentenced Angel Negron-Beltran to 38 months in prison for conspiracy to possess with intent to distribute cocaine, United States Attorney Ronald W. Sharpe announced.
Negron-Beltran, 53, was arrested as part of the investigation of Roberto Tapia, Director of the Virgin Islands Department of Planning and Natural Resources (DPNR) Division of Environmental Enforcement. On November 7, 2013, Negron-Beltran was charged in a 69-count indictment, along with seven other defendants, including former Virgin Islands Police Department Sergeant Angelo Hill, Raymond Brown, Hector Alcenio, Stephen Torres, and Eddie Lopez-Lopez, Walter Hill, and Edwin Monsanto. On January 29, 2014, Negron-Beltran pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine.
In addition to the 38 months’ incarceration, Negron-Beltran was placed on four years’ supervised release, and ordered to pay a $100 special assessment.
The case was investigated by the Public Corruption Task Force, which comprises the Federal Bureau of Investigation (FBI); U.S. Drug Enforcement Administration (DEA); Virgin Islands Police Department; U.S. Marshals Service; Internal Revenue Service Criminal Investigation Division (IRS-CI); U.S. Department of Homeland Security, Homeland Security Investigations (HSI); U.S. Customs and Border Protection (CBP); United States Coast Guard; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Office of the Virgin Islands Inspector General. Assistant U.S. Attorneys Kelly B. Lake and Kim Lindquist prosecuted the case.
Alexandria Man Pleads Guilty to Million-Dollar Investment Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – Christopher Cunningham, 46, of Alexandria, Virginia, pleaded guilty today to a wire fraud scheme in which Cunningham solicited investments, typically from elderly clients, based on fraudulent promises and representations.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Kathy A. Michalko, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema.
In a statement of facts filed with the plea agreement, Cunningham admitted to conducting an investment fraud scheme from approximately 2005 to 2011. During that time, Cunningham worked as an investment adviser, and in that position, he solicited investments from clients, who typically were elderly. Among other things, Cunningham promised these clients guaranteed returns and made certain false representations, including that he was not being personally compensated in connection with their investments and the money could be paid back in a single day if needed. Once he obtained the money from these clients, however, Cunningham used it to fund his private companies and for his personal use. Cunningham repaid very little of his clients’ investments, and as a result of his fraud, investors lost more than $1,000,000.
Cunninghamfaces a maximum penalty of twenty years in prison when he is sentenced on October 3, 2014.
This case was investigated by the U.S. Secret Service with the assistance of the Virginia State Corporation Commission’s Division of Securities and Retail Franchising. Assistant U.S. Attorney Chad Golder is prosecuting 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. 1:14-cr-225.
Albuquerque Man Sentenced to Thirty Years in Federal Prison for Producing Child PornographyRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez and Carol K.O. Lee, Special Agent in Charge of the FBI’s Albuquerque Division, announced that Antonio Gutierrez, 44, of Albuquerque, N.M., was sentenced today to 30 years in federal prison for his conviction on three production of child pornography charges. After he completes his prison sentence, Gutierrez will be on supervised release for five years and will be required to register as a sex offender. Gutierrez also was ordered to pay $14,060 in restitution to the victim of his criminal conduct.
Gutierrez was arrested in Aug. 2012, based on a criminal complaint alleging that he induced a minor to engage in sexually explicit conduct for the purpose of producing child pornography. Gutierrez subsequently was charged with three counts of production of child pornography in a superseding indictment alleging that he committed the offenses between Aug. 2011 and Nov. 2011 in Bernalillo County, N.M.
Gutierrez was convicted on all three charges in the superseding indictment on Jan. 27, 2014, after a five-day jury trial. The evidence at trial established that Gutierrez gave the victim a cellphone in May 2011, on her 16th birthday, and told her that he would pay for the first month of service. In June 2011, Gutierrez told the victim that he would pay the cellphone service bill if she repaid him with nude photographs of herself, and the victim used her cellphone to take two photographs of herself without clothes and sent the images to Gutierrez’s cellphone. This began a monthly cycle of Gutierrez refusing to pay for the victim’s cellphone service unless she provided him with nude photographs of herself. With each passing month, Gutierrez escalated the nature and extent of the sexual conduct in which the victim was required to engage when photographed.
In Nov. 2011, after the victim reported Gutierrez’s unlawful conduct to the Albuquerque Police Department, officers executed a search warrant at Gutierrez’s residence and seized computers, computer-related media and cellphones. A subsequent forensic examination of Gutierrez’s personal computer revealed many sexually explicit photographs, including sexually explicit photographs of the victim taken by Gutierrez. Gutierrez testified in his own defense and denied that he produced any child pornography. Gutierrez also claimed that he did not know how the child pornography ended up on his computer.
This case was investigated by the Albuquerque office of the FBI, the Albuquerque Police Department and the New Mexico Regional Computer Forensic Laboratory. Assistant U.S. Attorneys Jennifer M. Rozzoni and Marisa A. Lizarraga prosecuted the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 75 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Alabama Hospital Employee Pleads Guilty to Identity TheftRead the Press Release
Kamarian D. Millender, of Dothan, Alabama,pleaded guilty today to one count of aggravated identity theft , Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama announced.
According to court documents, Millenderworkedas a lab technician at a medical facility in Dothan. He and others stole patient medical records, which contained personal identification information. Millender used this information to file false tax returns in an attempt to obtain fraudulent tax refunds from the Internal Revenue Service (IRS). Millender’sactions led to the filing of more than 100 false federal tax returns, which victimized approximately 73 individuals and sought to defraud the IRS out of approximately $536,028. The IRS was successfully able to stop the vast majority of the falsely claimed refunds, however an estimated $18,915 in refunds were issued.
As a result of his plea, Millenderwill be sentenced to serve the statutory mandatory sentence of two years in prison and is subject to a maximum fine in the amount of $250,000.
This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Charles M. Edgar Jr. and Michael Boteler of the Tax Division are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at the division website .
Monday 7 July 2014
West Monroe Man Sentenced to 120 Months in Prison for Possessing Child PornographyRead the Press Release
MONROE, La. –A West Monroe man was sentenced to 120 months in prison and to five years of supervised release for possessing more than 50 images of child pornography on his home computers, U.S. Attorney Stephanie A. Finley announced today.
David Wayne Greer, 42, of West Monroe, La., was sentenced by U.S. District Judge Robert G. James for one count of possession of child pornography. According to evidence presented at the guilty plea on February 18, 2014, the state of Louisiana’s Attorney General’s Office High Technology Crime Unit detected child pornography being downloaded to a computer in West Monroe in March of 2013. Later that same month, agents searched the home where Greer was residing. Computers from the home were searched and 50 images of child pornography were found. The pornography was of adults sexually abusing pre-pubescent children. Some of the children in the images were as young as one year.
Homeland Security Investigations, the Louisiana Attorney Generals’ Office High Technology Crime Unit and the Ouachita Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp.
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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Wentzville Man Pleads Guilty to Multiple Armed Bank Robberies and Shooting of Missouri State TrooperRead the Press Release
St. Louis, MO – WARREN J. GLADDERS, Wentzville, MO, pled guilty to three armed bank robberies committed in July, August and September 2013. On July 7, 2013, Gladders took approximately $7,000 from the Reliance Bank located in Creve Coeur, Missouri. On August 2, 2013, Gladders took approximately $5,000 from First National Bank located in Weldon Springs, Missouri. On September 20, 2013, Gladders took approximately $43,000 from the First Bank located in Marthasville, Missouri. In each instance, Gladders entered the banking institution and threatened the bank teller(s) while displaying a firearm.
On September 20, 2013, Gladders fled the scene of his final bank robbery in his personal vehicle. Gladders was traveling at a high rate of speed. A witness outside of First Bank observed the robbery in progress. The witness was able to obtain a partial license plate number and description of Gladders’ vehicle. That information was provided to law enforcement officials. A Missouri State Highway Patrol trooper observed a vehicle matching the description and license plate number and followed it. The trooper pursued and caught up to Gladders and his vehicle. The trooper activated his vehicle’s emergency lights and sirens. Gladders eventually pulled his vehicle over. The trooper exited his vehicle and demanded that Gladders get out of his vehicle. As the trooper was exiting his vehicle, Gladders exited his.
As Gladders exited his vehicle, he raised the Smith and Wesson revolver possessed by him and shot at the trooper approximately four times. One of those shots struck the trooper in the center of the trooper’s chest. The trooper was protected by his protective vest. The bullet from Gladders’ firearm penetrated the vest but not the trooper’s body. The trooper was able to return fire. The trooper struck Gladders at least once in the leg. Gladders fell to the ground and the firearm fell out of Gladders’ hand. Gladders attempted to regain control of his firearm. The trooper fired additional warning shots at Gladders -- not striking him. Gladders stopped moving at that point. The trooper was able to remove Gladders’ firearm from his proximity and place Gladders under arrest. Multiple law enforcement officials from various agencies responded to the scene. Gladders was taken into custody and transported for medical attention.
Following Gladders’ arrest, search warrants were obtained for his vehicle, residence and business. Among other things, most of the items worn or used by Gladders during the armed bank robberies were located and seized by law enforcement. Furthermore, an officer recovered and seized what is commonly referred to as a “sawed-off shotgun” from inside Gladders’ vehicle.
Gladders entered his plea before United States District Judge Carol E. Jackson, who has set sentencing for October 16, 2014.
Each armed bank robbery charge carries a maximum penalty of 20 years in prison and/or fines up to $250,000. For his use and discharge of the firearm, Gladders is facing a maximum possible penalty of life in prison. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
In addition to the Federal Bureau of Investigation, this case was investigated by the Missouri State Highway Patrol, the Warren County Sheriff’s Department, the St. Charles County Sheriff’s Department, the Creve Coeur Police Department, the Montgomery County Sheriff’s Department, the Jonesburg Police Department and the Wright City Police Department, along with coordination amongst the Warren County, St. Charles County and St. Louis County Prosecuting Attorneys’ Offices.
Visalia Doctor Pleads Guilty to Illegally Dispensing OxycodoneRead the Press Release
FRESNO, Calif. — Terrill Eugene Brown, 61, of Visalia, pleaded guilty today to causing the distribution and dispensing of oxycodone and structuring financial transactions to evade a reporting requirement, United States Attorney Benjamin B. Wagner and Fresno County District Attorney Elizabeth Egan announced. In addition, Brown agreed to forfeit more than $182,000 and three BMW sedans that were involved in or obtained as a result of his criminal activity.
According to court documents, Brown, a medical doctor formerly licensed by the State of California, prescribed large quantities of highly addictive prescription drugs, including oxycodone and hydrocodone, without medical necessity. Brown prescribed to customers who did not have a legitimate medical need and out of the usual course of his professional practice. Brown deposited the cash earned from these prescriptions into different personal bank accounts in a manner designed to avoid currency transaction reporting requirements.
Oxycodone, also known as “oxy,” is a narcotic analgesic or painkiller and is classified as a Schedule II controlled substance. Demand for oxycodone-based prescription pain medication has grown to epidemic proportions in the United States, and dealers profit by selling such medication on the street. Oxycodone-based Schedule II drugs have a high potential for abuse, and users will often crush and snort the pills or dissolve and inject them to get an immediate high. The abuse can lead to addiction, overdose, and sometimes death.
This case is the product of an investigation by the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, and the Medical Board of California, California Bureau of Investigation. The case is being prosecuted by Nathan Lambert, a Fresno County Deputy District Attorney sworn in as a Special Assistant U.S. Attorney for the case, and Assistant United States Attorneys Kathleen A. Servatius, Laurel J. Montoya, and Heather M. Jones.
Brown will remain out of custody until his sentencing date. He is scheduled to be sentenced by Judge Lawrence J. O'Neill on September 22, 2014. Brown faces a maximum statutory penalty of 20 years in prison and a $1 million fine for illegally causing the dispensing of a controlled substance, and a maximum sentence of 10 years and a $500,000 fine for structuring currency transactions to avoid a reporting requirement. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is being brought as part of Operation Footprint, a nationwide law enforcement initiative led by the U.S. Attorney’s Offices, the IRS-Criminal Investigation, the DEA, and the U.S. Postal Inspection Service. Operation Footprint targets large drug trafficking organizations by identifying the transfer of drug proceeds through financial institutions, bulk cash smuggling and other forms of money transfers. Operation Footprint is focused on bringing criminal charges based on Bank Secrecy Act violations in addition to violations of the Controlled Substances Act and the Money Laundering Control Act.
This case is also the product of the Organized Crime Drug Enforcement Task Force (OCDETF), 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.
In a related case, on April 11, 2013, a federal grand jury charged 13 defendants in an indictment that alleges that they obtained prescriptions for oxycodone, hydrocodone, and medical marijuana cards from Dr. Brown in Modesto. They recruited other individuals to obtain prescriptions and marijuana cards from the doctor by offering them payments in return for the prescriptions and marijuana cards. After obtaining the oxycodone and hydrocodone pills, the defendants shipped the pills to other states.
Eight defendants in that case have been sentenced as follows:
David Ruem, of Tacoma, Wash.: 10 years and one month in prison
Phary Chim, of Kent, Wash.: four years and three months in prison;
Sdey Chim, of Modesto: three years and 10 months in prison;
Chanrath Yath, of Modesto: three years and four months in prison;
Phally Thach, of Modesto: two and a half years in prison;
Raeb Chou, of Modesto: two years in prison;
Cindy Doeum, of Kent, Wash.: three years of probation; and
Chantha Chim, of Murietta: three years of probation.
The charges against the remaining five defendants are pending. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Violent Crime and Human Trafficking ConferenceRead the Press Release
FARGO - United States Attorney Timothy Q. Purdon has announced that the Violent Crime and Human Trafficking Conference will be held August 12, 13, and 14 in Sioux Falls, South Dakota. All sessions will be held at the Washington Pavilion.
The conference is co-sponsored by U.S. Attorney Brendan V Johnson, District of South Dakota, the Department of Justice Office for Victims of Crime, and Avera Health.
The first day, August 12, will focus on training for medical professionals, advocates, social workers, counselors, and others in the health care field. Additional training on the first day will include the perspective from providers, the patient’s needs, and the public’s responsibility.
The remaining day and a half of the conference, August 13 and 14, is open to the public and will cover key topics such as; increases in human trafficking and other violence against women taking place in the North Dakota oil fields, internet predators in the Dakotas, sexual assault in Indian country, family violence, and working with child victims of physical and sexual assault.
The conference will feature speakers and sessions that have been specifically designed to highlight standards of compassionate care for victims of crime, and encourage coordination of that care among healthcare providers, advocates, policy makers, and law enforcement.
Among the featured speakers on August 13 will be Elizabeth Smart-Gilmour, a sexual abuse survivor, who was abducted from her bedroom in the family’s Salt Lake City home in 2002. The keynote speaker on August 14 will be a victim from the Penn State University sex scandal that involved Jerry Sandusky, an assistant football coach under Joe Paterno.
U.S. Attorney Purdon and U.S Attorney Johnson have made the prosecution of violent crimes and human trafficking top priorities in their districts. In North Dakota, the recent Operation Vigilant Guardian sting has led to sex trafficking charges against 14 defendants in western North Dakota. In South Dakota, since 2009, there have been 23 cases of sex trafficking prosecuted.
The conference is free and open to the public. There is a $10 lunch fee for the August 12, Avera Health sessions.
Violent Crime and Human Trafficking Conference to Be Held in AugustRead the Press Release
United States Attorney Brendan V. Johnson has announced that the Violent Crime and Human Trafficking Conference will be held on August 12, 13, and 14, 2014. All sessions will be held at the Washington Pavilion - Mary W. Sommervold Hall, located at 301 S. Main Avenue in Sioux Falls, South Dakota.
The conference is co-sponsored by U.S. Attorney Timothy Q. Purdon, District of North Dakota, the Department of Justice Office for Victims of Crime, and Avera Health.
The first day, August 12, will focus on training for medical professionals, advocates, social workers, counselors, and others in the healthcare field. U.S. Attorney Johnson will begin the conference by providing an overview of the history, current status, and future trends of human trafficking and sexual assault in South Dakota. Additional training on the first day will include the perspective from providers, the patient’s needs, and the public’s responsibility.
The remaining day and a half of the conference, August 13 and 14, is open to the public and will cover key topics, such as increases in human trafficking and other violence against women that is occurring in the North Dakota oil fields, Internet predators in the Dakotas, sexual assault in Indian country, family violence, and working with child victims of physical and sexual assault. The conference will conclude at 12:00 noon on Thursday, August 14.
The conference will feature speakers and sessions that have been specifically designed to highlight standards of compassionate care for victims of crime, and promote coordination of that care among healthcare providers, advocates, policy makers, and law enforcement.
Among the featured speakers on August 13 will be Elizabeth Smart-Gilmour, a sexual abuse survivor, who was abducted from her bedroom in the family’s Salt Lake City home in 2002. The keynote speaker on August 14 will be a victim from the Penn State University sex scandal that involved Jerry Sandusky, a former assistant football coach under the late Joe Paterno.
U.S. Attorney Johnson and U.S Attorney Purdon have made the prosecution of violent crimes and human trafficking top priorities in their districts. The District of South Dakota has been involved in 23 sex trafficking cases since 2010. In North Dakota, the recent “Operation Vigilant Guardian” sting led to sex trafficking charges against 14 defendants in western North Dakota.
The conference is free admission and is open to the public. There is a $10 lunch fee for the August 12 Avera Health sessions.
For the full conference agenda and to register, please follow this link:
http://www.avera.org/experience/avera-victim-witnesshuman-trafficking-conference
Venezuelan Wildlife Dealer Charged with Illegally Trafficking in Marine LifeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and David Pharo, Resident Agent in Charge, U.S. Fish & Wildlife Service (FWS), Office of Law Enforcement, announce that Oscar H. Cordova-Cobian, 42, of Caracas, Venezuela, was arraigned today in Miami on charges he exported, and attempted to export, fish and wildlife, that is, specimens of regulated live corals, live rock, clams, and other marine invertebrates, knowing that said fish and wildlife were possessed, transported, and sold in violation of and in a manner unlawful under the laws, treaties, and regulations of the United States, all in violation of 16 U.S.C. '' 3372(a)(1), (a)(4), and 3373(d)(1)(A).
If convicted, Cordova-Cobian faces a possible sentence of up to five years in prison, a term of supervised release of up to three years, and a criminal fine of up to $250,000. He also faces forfeiture of the wildlife involved in the commission of the Lacey Act violations.
According to statements in the information and other court records, Cordova-Cobian is a resident of Caracas, Venezuela and operates and maintains a website through which he engages in the commercial sale of marine life, including ornamental fish and corals.
In order to protect certain species of fish and wildlife against over-exploitation, the United States is a party to an international treaty known as the Convention on International Trade in Endangered Species of Wild Fauna and Flora, T.I.A.S. 8249, (hereinafter “CITES”). Species are listed by CITES in Appendices, each of which provides a different level of protection. CITES regulates trade in the listed species through a system of permits and certificates (CITES documents), in order to monitor the effects of trade to ensure trade is legal and not detrimental to the survival of the species. Appendix I includes species threatened with extinction that are or may be affected by trade and such trade may take place only in exceptional circumstances. Appendix II includes species that are not presently threatened with extinction, but may become so if their trade is not regulated. CITES, Art. II. Congress has implemented CITES in the United States through the Endangered Species Act, 16 U.S.C. '' 1531-1544. The FWS as the CITES enforcement authority within the United States has published regulations to implement CITES. A list of all the species protected by CITES, the Endangered Species Act, and the FWS regulations is maintained by the CITES Secretariat. 50 C.F.R. § 23.7 and § 23.91.
The information alleges that in mid-May 2014, at Miami International Airport, Cordova-Cobian attempted to export, fish and wildlife, that is, approximately 136 specimens, including CITES App. II regulated live corals, CITES App. II regulated live rock (Scleractinia sp.), CITES App. II regulated clams (Tridacna sp.), and other marine invertebrates, in his checked baggage, for commercial sale to customers in Venezuela.
At no time did Cordova-Cobian apply for or obtain a CITES permit issued by the FWS for the export of CITES Appendix II wildlife from the United States or file a Declaration for the Importation or Exportation of Fish or Wildlife (Form 3-177) with FWS as required by law.
Mr. Ferrer commended the investigative efforts of FWS Office of Law Enforcement, National Oceanic and Atmospheric Administration Fisheries Office of Law Enforcement, the Florida Keys National Wildlife Refuges and the U.S. Customs and Border Protection Air Marine Branch. This matter is being prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald and Antonia Barnes.
An information is only an accusation and a defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
United States Attorney's Office Mourns Death of Federal Judge James TurkRead the Press Release
ROANOKE, VIRGINIA – The United States Attorney’s Office for the Western District of Virginia is saddened to hear the news of the passing of Federal District Court Judge James Turk and offers condolences to Judge Turk’s friends and family in this time of mourning.
“For forty years, Judge Turk worked tirelessly to ensure that the federal judicial system in this District was fair and unbiased,” United States Attorney Timothy J. Heaphy said today. “He brought a level of civility and common courtesy to the bench – qualities that endeared him to the lawyers in this office and all those who practiced before him. His tradition of shaking hands with defendants after their cases concluded was a perfect manifestation of his essential humanity and his ability to recognize the good in all people, regardless of circumstance. For that quality, above all others, Judge Turk will always be remembered.”
U.S. Attorney's Office Is Seeking Information from Those Sickened by Contaminated Eggs in 2010Read the Press Release
The U.S. Attorney’s Office for the Northern District of Iowa is asking people who were sickened by eggs produced by Quality Egg, LLC between about the beginning of 2010 and August 2010 to contact their office.
On June 3, 2014, Quality Egg, LLC (also known as Wright County Egg) and two company officials pled guilty to a misdemeanor charge of introducing adulterated eggs into interstate commerce. The charge resulted from Quality Egg, LLC’s sale of eggs contaminated with Salmonella Enteriditis between about the beginning of 2010 and August 2010.
Anyone who was sickened during this time period from eggs distributed by Quality Egg, LLC is asked to visit the website for the U.S. Attorney’s Office, Northern District of Iowa, at: www.justice.gov/usao/ian or to contact Shari Konarske, Victim-Witness Coordinator, U.S. Attorney’s Office, Northern District of Iowa at (319) 363-6333 or at [email protected].
Two More Defendants Sentenced in Stolen Identity Tax Refund Scheme Resulting in Millions of Dollars in Fraudulent ActivityRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department's Tax Division, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announce that defendants Herve Wilmore Jr., 29, of Aventura, and Delvin Jean Baptiste, a/k/a “Doo Doo,” 29, of Miramar, were sentenced today before U.S. District Judge Robert N. Scola for their participation in a stolen identity tax refund scheme resulting in millions of dollars in fraudulent activity. Wilmore was sentenced to 240 months in prison, to be followed by three years of supervised release. Baptiste was sentenced to 121 months in prison, to be followed by three years of supervised release.
On March 5, 2014, both defendants were convicted by a federal jury in Miami of one count of conspiring to defraud the Internal Revenue Service (IRS), wire fraud, and aggravated identity theft, all in violation of Title 18, United States Code, Section 371, two counts of wire fraud, in violation of Title 18, United States Code, Sections 1343 and 2, and two counts of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2.
According to court documents and evidence presented at trial, the defendants conspired to unjustly enrich themselves by recruiting knowing co-conspirators and unknowing victims to put businesses, bank accounts and Electronic Filing Identification Numbers (EFINs) in their names, through which fraudulent transactions would be conducted. To accomplish this, the defendants used the personal identification information of individuals, many deceased, to prepare and file false and fraudulent income tax returns with the IRS. The defendants would obtain possession of fraudulently obtained refunds in the form of United States Treasury and Refund Anticipation Loan checks diverted to addresses or into bank accounts that they caused to be created and controlled. The defendants would then negotiate the fraudulently obtained federal income tax refunds within each other’s businesses, and elsewhere, to avoid being detected.
According to evidence at trial and court documents, Wilmore, Baptiste and their co-conspirators caused the filing of approximately $35 million in fraudulent federal income tax returns of which the IRS paid out approximately $14 million. Wilmore was the president of Worldwide Income Tax Multiservices while Baptiste was the president of Royal Tax Multiservices, both tax preparation services located in Miami.
Each of the following co-defendants previously pled guilty to one count of conspiring to defraud the government, in violation of Title 18, United States Code, Section 371, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1):
- Dukens Eleazard, a/k/a “DK,” 33, of Pembroke Pines, was sentenced on April 29, 2014 to 60 months in prison, to be followed by three years of supervised release, and was ordered to pay $6,679,036.78 in restitution.
- Henry Dorvil, a/k/a “D,” 35, of Hollywood, was sentenced on April 17, 2014 to 54 months in prison, to be followed by three years of supervised release, and was ordered to pay $2,537,417 in restitution.
- Corey Williams, 30, of Miami Gardens, was sentenced on May 21, 2014 to 40 months in prison, to be followed by three years of supervised release, and was ordered to pay $2,089,411 in restitution.
- Ronald Gustave, 36, of Miami, was sentenced on April 17, 2014 to 36 months in prison, to be followed by three years of supervised release, and was ordered to pay $544,054 in restitution.
- Luckner St Fleur, a/k/a “Nene,” 44, of Miami, was sentenced on May 9, 2014 to 30 months in prison, to be followed by three years of supervised release, and was ordered to pay $1,376,472 in restitution.
- Brandon Johnson, 29, of Miami Gardens, was sentenced on April 22, 2014 to 30 months in prison, to be followed by three years of supervised release, and was ordered to pay $74,050 in restitution.
- Marie Eleazard, a/k/a “Fanfan,” 32, of Miami, was sentenced on April 9, 2014 to 25 months in prison, to be followed by two years of supervised release, and was ordered to pay $1,880,317.94 in restitution.
- Jesse Lamar Harrell, 26, of Miramar, was sentenced on May 9, 2014 to 15 months in prison, to be followed by three years of supervised release, and was ordered to pay $589,675.93 in restitution.
- Ruth Cartwright, a/k/a “Princess,” 30, formerly of Plantation, is scheduled to be sentenced on September 26, 12014.
Co-defendant Marc Leroy Saint Juste, 47, of Tamarac, previously pled guilty to one count of conspiring to defraud the government, in violation of Title 18, United States Code, Section 371. He was sentenced to two months in prison, to be followed by one year of supervised release.
Co-defendant John Similien, 24, of Plantation, pled guilty on the third day of the eight day trial to making a false statement, in violation of Title 18, United States Code, Section 1001(a)(2), and was sentenced to time served.
The indictment was dismissed against Miguel Patterson, 35, of Miami.
Mr. Ferrer and Deputy Assistant Attorney General Cimino commended the investigative efforts of the IRS-CI, FBI, USSS, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI). The case is being prosecuted by Assistant U.S. Attorney Neil Karadbil and Tax Division Trial Attorney Greg Tortella.
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.
Texas Drug Dealer Sentenced to 20 Years in Prison for Trafficking Heroin in MarylandRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Amir Ali Faraz, age 45, of Laredo, Texas, today to 20 years in prison, followed by 10 years of supervised release, for conspiracy to distribute heroin and marijuana, possession with intent to distribute heroin, using a phone in furtherance of drug trafficking and interstate travel to promote drug trafficking activities.Judge Titus also sentenced co-conspirator Ricardo Rodriguez, age 29, also of Laredo, Texas, to 78 months in prison, followed by five years of supervised release, for conspiracy to distribute heroin and marijuana, and for using a cell phone in furtherance of drug trafficking. Faraz and Rodriguez were convicted on January 24, 2014, after a 12-day jury trial.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Mark A. Magaw of the Prince George’s County Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Colonel W. Steven Flaherty, Superintendent of the Virginia State Police.
According to testimony at their trial, Faraz played a significant role in a drug conspiracy - from transporting heroin from Mexico into Texas and then on to Maryland, to soliciting purchasers and distributing heroin and marijuana. For example, beginning in late July, Faraz and a co-conspirator, Javier Escobar-Bucerra traveled from Texas to Maryland with heroin to sell. A marijuana customer of Faraz’ introduced them to Harold Bartrum. Bartrum was only interested in purchasing marijuana, but located a customer for the heroin. Faraz and Escobar-Bucerra sold nine ounces of heroin through Bartrum to this individual. Faraz and the co-conspirator also discussed with Bartrum returning to Maryland with marijuana. In September 2012, Faraz and Escobar-Bucerra traveled to Maryland from Texas with at least one kilogram of white powder heroin and between 9 ounces and 2.2 pounds of black tar heroin. Bartrum again assisted them in selling the heroin. According to trial testimony, Faraz traveled to Mexico before each trip to Maryland, and returned with between one and two kilograms of heroin.Witnesses testified that during October 2012, Faraz continued to talk to Bartrum by telephone, discussing arrangements to obtain marijuana, cocaine and heroin from Texas. Faraz wanted one of his heroin customers to provide the funds to obtain the marijuana in Mexico. Faraz’ conversations with Bartrum and the heroin customer included shipments of 100 to 200 pounds of marijuana, as well as heroin. Search and arrest warrants were executed before the transaction could take place.
According to trial testimony, Escobar-Bucerra also communicated with Bartrum during October and discussed bringing marijuana and heroin back to Maryland. In late October and November 2012, Ricardo Rodriguez was intercepted speaking to Bartrum about the next trip planned by Escobar-Bucerra. During these calls Rodriguez advised they were ready with all of the drugs, including marijuana and heroin. He also told Bartrum they had 500 pounds of marijuana if he wanted to purchase it. They discussed the quality and price of this additional marijuana and the need to have someone transport it. As a result of these calls, on November 6, 2012, surveillance located two pickup trucks traveling in tandem from Texas to Maryland. The vehicles were located outside Roanoke, Virginia. A traffic stop was conducted on both trucks. One of the trucks was occupied by Rodriguez and driven by his codefendant Jose Chapa. A subsequent search of the vehicle resulted in the seizure of seven packages which contained 6,190 grams of marijuana; a ziploc bag which contained 337.7 grams of heroin hydrochloride; plastic bags which contained 287.6 grams of heroin hydrochloride; and a knotted plastic bag which contained 99.1 grams of heroin hydrochloride. Escobar-Bucerra was identified as the driver of the second pickup truck.
Javier Escobar-Bucerra, age 29, of Laredo, Texas; Harold Bartrum, age 43, of Hyattsville, Maryland; and Jose Chapa, age 35, all pleaded guilty to their roles in the conspiracy. Escobar Bucerra and Bartrum were each sentenced to 64 months in prison; and Chapa was sentenced to 92 months in prison.
United States Attorney Rod J. Rosenstein praised the HSI Baltimore, Prince George’s County Police Department, Maryland State Police and Virginia State Police, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Leah J. Bressack, who prosecuted the case.
Ten Individuals Sentenced in Des Moines Methamphetamine ConspiracyRead the Press Release
DES MOINES, IA - On Wednesday, July 2, 2014, the last of ten defendants from the Des Moines, Iowa, area was sentenced on federal drug trafficking charges announced United States Attorney Nicholas A. Klinefeldt. Andres “Andy” Gomez, III, age 26, of Altoona, Iowa, was sentenced to 48 months imprisonment for conspiracy to distribute methamphetamine. District Judge John A. Jarvey also ordered Gomez to serve a term of four years supervised release following the period of imprisonment. The other nine defendants were previously sentenced for conspiracy to distribute methamphetamine following their guilty pleas. Juan Carlos Hernandez Gonzalez, age 33 of Des Moines, was sentenced to 300 months imprisonment and ordered to serve a term of 5 years supervised release following imprisonment. Miguel Bazan Cardenas, age 36 of Des Moines, was sentenced to 90 months imprisonment followed by 5 years supervised release. Bertoldo Zuniga, age 60 of Des Moines, was sentenced to 48 months imprisonment followed by 3 years supervised release. Azael Bernal Balderas, age 31 of Des Moines, was sentenced to 60 months imprisonment followed by 5 years supervised release. Ubaldo Carrasco Alcantar, age 46 of Des Moines, was sentenced to 30 months imprisonment followed by 3 years supervised release. Josue Castaneira Cruz, age 34 of Des Moines, was sentenced to 27 months imprisonment followed by 3 years supervised release. Gabriel Carrasco, age 32 of Des Moines, was sentenced to time served and was also ordered to serve 3 years supervised release with special conditions of 4 months in a residential facility followed by 4 months house arrest. Beverly Ann Hickcox, age 61 of Des Moines, was sentenced to 18 months imprisonment followed by 3 years supervised release. Danny Lee Iseminger, age 54 of Newton, was sentenced to 104 months imprisonment followed by 5 years supervised release. Each defendant was also ordered to pay a special assessment to the crime victim’s fund.
This organization was responsible for the distribution of highly pure methamphetamine in the Des Moines area from at least 2009 through 2012. The investigation culminated in the execution of multiple search and arrest warrants in December 2012. The organization received shipments of 30 pounds of methamphetamine at a time that originated from Mexico. Bulk cash shipments of drug proceeds were sent to Mexico by the organization, which was headed in the Des Moines area by Juan Carlos Hernandez Gonzalez. During the searches conducted in December 2012, agents seized 1.9 kilograms of 100% pure methamphetamine, $117,749 in drug proceeds and 17 firearms. Other properties, including a vehicle and residence, were also seized and forfeited as a result of the investigation.
The case was the result of the multiple-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF Program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. Agencies involved in this case included the Iowa Division of Narcotics Enforcement, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Des Moines, Iowa, Police Department, the Homeland Security Investigations, the Internal Revenue Service Criminal Investigations, the Iowa Division of Criminal Investigations, the Iowa Division of Intelligence, the Iowa National Guard Counter-Drug Unit, the Iowa State Fire Marshals, the Iowa State Patrol, the Mid-Iowa Narcotics Enforcement Task Force and Urbandale, Iowa, Police Department. This case was prosecuted in the United States Attorney’s Office for the Southern District of Iowa.
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