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Thursday 3 July 2014
Prairieville Man Sentenced to Forty Years in Prison for Distributionand Receipt of Child PornographyRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that U.S. District Court Judge Shelly D. Dick sentenced CLINTON D. SMITH, age 43, of Prairieville, Louisiana, to 480 months in prison and 10 years of supervised release following imprisonment. While serving his term of supervised release, SMITH will be required to register as a sex offender, and his access to computers, minors, and the internet will be restricted. SMITH had previously pled guilty in February 2014 to distribution and receipt of child pornography.
According to the factual basis presented in connection with his guilty plea, between November 25, 2012 to February 20, 2013, SMITH distributed 49 images and 15 videos of child pornography and received 80 images of child pornography. Many of the images depicted prepubescent minors, and several depicted violent, sadistic, or masochistic conduct. At sentencing, the Court considered evidence of SMITH’s history of prior sexual abuse of several child victims and his role in the production of pornographic images.
This case was brought as part of Project Safe Childhood, a nationwide initiative 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “Resources” tab for information about Internet safety.
U.S. Attorney Green stated: “The United States Attorney’s Office has always prioritized its efforts in this critical area of crimes against children. We will continue to work closely with the FBI, and all federal, state, and local law enforcement, to protect the children in this district as part of this important national initiative. This sentence should serve as a deterrent to those who mean harm to our children.”
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Cam T. Le and Special Assistant U.S. Attorney John Brad Casey.
Pinson Guilty of RacketeeringRead the Press Release
Contact Person: JD Rowell (803) 929-3000
Columbia, South Carolina -----The United States Attorney’s Office announced that a jury returned guilty verdicts in the case of United States v. JONATHAN PINSON. The jury considered 45 counts of a Superseding Indictment charging JONATHAN PINSON, age 44, of Greenville, South Carolina with various violations of federal law, including §18 USC §1962(d) (commonly called a RICO conspiracy), theft of federal funds, mail fraud, wire fraud, money laundering, making false statements, extortion under color of law and state law bribery. The Superseding Indictment specifically alleged that PINSON used his position as Chairman of the Board of Trustees of South Carolina State University (SCSU) to commit illegal acts on behalf of the enterprise. Co-defendant, ERIC ROBINSON, age 44, of Greenville was acquitted of 7 counts in which he was charged. The jury considered evidence that PINSON was engaged in four different schemes. One scheme revolved around the 2011 homecoming concert at SCSU and PINSON’s efforts to steer the concert promotion contract to his close friend and former SCSU roommate, ROBINSON, in exchange for a kickback.
Other schemes included PINSON’s theft of government funds earmarked for the installation of a diaper plant in Marion County. Evidence showed that proceeds from the grant, intended to create jobs in rural Marion County, were instead pocketed by PINSON and his associates, Lance Wright, Tony Williams, and Phil Mims, each of whom has pled guilty to charges related to the fraud.
PINSON was also convicted of theft of government funds received from a 10 million dollar American Recovery and Reinvestment Act (ARRA) grant (commonly known as stimulus money) intended for the development known as the Village at Rivers Edge (VRE).
In the final scheme PINSON again used his position as Chairman of the Board of SCSU to influence officials at SCSU to purchase land known as “Sportsman’s Retreat”. The seller of the property, Richard Zahn, PINSON’s business partner, testified that he agreed to pay a kickback to PINSON in the form of a new Porsche Cayenne, an SUV valued at approximately 90 thousand dollars.
During the two and one-half week trial, the Government called twenty witnesses, introduced approximately 200 exhibits and played 118 secretly recorded telephone calls. The calls, authorized by a court-ordered wiretap, covered from July 21 to November 20, 2011.
The case was investigated by agents of the Federal Bureau of Investigation (FBI), State Law Enforcement Division (SLED), Department of Housing and Urban Development, Office of Inspector General (HUD-OIG) and Internal Revenue Service, Criminal Investigations (IRS-CI). Assistant United States Attorneys Nancy C. Wicker, Jane B. Taylor, J.D. Rowell, and T. DeWayne Pearson of the Columbia office prosecuted this and other related cases stemming from this investigation.
PINSON will be sentenced at a later date after the United States Probation Office has completed their presentence investigation and report.Newton Man Sentenced to 8 Years in Prison for Possession of Child PornographyRead the Press Release
DES MOINES, IA – On July 2, 2014, James Wiley Brock, a resident of Newton, Iowa, was sentenced in United States District Court by Judge John A. Jarvey to 8 years in prison for possessing child pornography announced United States Attorney Nicholas A. Klinefeldt.
Brock admitted he knowingly possessed child pornography on or about July 2, 2013, namely VHS tapes and computer media that contained one or more visual depictions of child pornography. Specifically, Brock produced the visual depictions by, among other things, using cameras hidden in his residence to film teenagers using a tanning bed in his home.
Brock was also ordered to forfeit his home, where he produced the videos, and all equipment used to commit the offense.
The case was investigated by the United States Department of Homeland Security/Immigration and Customs Enforcement, the Newton, Iowa, Police Department, and the Iowa Internet Crimes Against Children Task Force. The case was prosecuted by the United States Attorney's Office for the Southern District of Iowa.
(Download Press Release )
New York Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Cortland, New York, man convicted of Failure to Register as a Sex Offender was sentenced on July 1, 2014, by U.S. District Judge Roberto A. Lange.
Shawn George, a/k/a Shaun George, age 38, was sentenced to 24 months in custody, 5 years of supervised release and a $100 special assessment to the Federal Crime Victims Fund.
George was indicted by a federal grand jury on February 19, 2014. He pled guilty on March 24, 2014.
The conviction stems from an incident wherein George failed to register as a sex offender between February 2, 2014 and February 7, 2014. George arrived in Pierre, South Dakota, on February 2, 2014, and had until February 6, 2014, to update his registration. He failed to do so. George had previously been convicted of a sex offense in federal court in Cortland County, New York, which requires him to register as a sex offender.
The investigation was conducted by the U.S. Marshals Service. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
George was immediately turned over to the custody of the U.S. Marshals Service.
Montana Man and California Woman Sentenced for Possession with Intent to Distribute A Controlled Substance and Aiding and AbettingRead the Press Release
United States Attorney Brendan V. Johnson announced that an Alberton, Montana, man convicted of Possession with Intent to Distribute a Controlled Substance and Aiding and Abetting was sentenced on June 30, 2014, by U.S. District Judge Roberto A. Lange. His accomplice, a Columbia, California, woman, was sentenced on the same charges on July 2, 2014, by U.S. District Judge Roberto A. Lange.
Claudio Puccio, age 47, was sentenced to 11 months in custody, 2 years of supervised release, a $1,000 fine, and a $100 special assessment to the Federal Crime Victims Fund. Beth Swank, age 53, was sentenced to 10 months in custody, 2 years of supervised release, a $1,000 fine, and a $100 special assessment to the Federal Crime Victims Fund.
Puccio and Swank were indicted by a federal grand jury on January 15, 2014. Puccio pled guilty on April 9, 2014, and Swank pled guilty on April 15, 2014.
The conviction stems from an incident on November 23, 2013, when a South Dakota Highway Patrol Trooper stopped Puccio and Swank for speeding. After interviewing both passengers separately, the trooper had reason to believe the vehicle might contain drugs. He deployed his service dog who alerted to the odor of drugs coming from the vehicle. The trooper searched two suitcases and found vacuum sealed bags of suspected marijuana, pucks of suspected hashish, $55,340 in cash, and 11 cell phones. The substances were tested and confirmed to be marijuana, with a weight of 11.726 pounds. The pucks tested positive for hashish, with a weight of 1.4502 pounds.
This case was investigated by the Division of Criminal Investigation and the South Dakota Highway Patrol. Assistant U.S. Attorney Jay Miller prosecuted the case.
Puccio and Swank were immediately turned over to the custody of the U.S. Marshals Service.
Military Policeman from Lemoore Naval Air Station Indicted for Sexual Exploitation of MinorsRead the Press Release
FRESNO, Calif. — A grand jury in Fresno returned an indictment today against Michael Brandon Kiper, 29, of Lemoore, charging him with two counts of sexual exploitation of a minor and two counts of receipt of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, Kiper, who had been assigned duties as a military policeman at the Lemoore Naval Air Station in California, and while on temporary assignments in Nevada and in Bahrain, used accounts on Kik Messenger, Instagram, and Facebook to solicit sexually explicit images of numerous minor females. Kiper used an alias and claimed to be an agent for a modeling agency. Once he convinced minor females to send him at least one sexually explicit image of themselves, he threatened to post those images to social media sites unless the victims produced and transmitted additional sexually explicit images. One minor female told her mother about her communications with Kiper, and they contacted law enforcement. Kiper was apprehended in Oklahoma and transported in military custody to San Diego. He has since been taken into federal custody, and a magistrate judge in San Diego has ordered him detained. He will appear in federal court in Fresno once he is transported from San Diego.
This case is the result of an investigation by the Naval Criminal Investigative Service, the Upper Perk (Pennsylvania) Police Department, and the Paoli (Indiana) Police Department. Forensic analysis of evidence is being conducted by the Kings County District Attorney’s Office which is part of the Central California Internet Crimes Against Children Task Force. Assistant United States Attorney David Gappa is prosecuting this case.
If convicted, Kiper faces a maximum sentence for each of the two counts of sexual exploitation of a minor of 30 years in prison, a $250,000 fine, and a lifetime term of supervised release. The maximum sentence for each of the two receipt of child pornography charges are 20 years in prison, a $250,000 fine, and a lifetime term of supervised release. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Miami Wildlife Dealer Convicted in Illegal Rhinoceros Trafficking DealRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Dan Ashe, Director, U.S. Fish and Wildlife Service (FWS) announced that Gene Harris, 76, of Miami, pled guilty yesterday to the sale and purchase of, the offer of sale and purchase of, and the intent to sell and purchase horns of a black rhinoceros (Diceros bicornis) with a market value in excess of $350.00, and to the transport, receipt, acquisition, and purchase of said wildlife, knowing that the wildlife was possessed, transported, and sold in violation of the Endangered Species Act, 16 U.S.C. '' 1538(a)(1)(E) and (F), and 1540(b), all in violation of 16 U.S.C. '' 3372(a)(1) and 3373(d)(1)(B); and 18 U.S.C. ' 2.
Harris 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. U.S. District Judge Marcia G. Cooke who accepted Harris’s guilty plea, scheduled sentencing for September 24, 2014 at 10:30 a.m.
According to case records and a joint factual proffer submitted to the Court, at the relevant times, Harris was engaged in the retail sale of wildlife products, including taxidermy mounts from locations in Miami-Dade County and Laredo, Texas. Further, Harris engaged in the arrangement, brokerage, and purchase/sale of wildlife on a private basis, of various wildlife specimens, specifically including black rhinoceros (Diceros bicornis) horns.
In the proffer, it was agreed that between June 2011 and July 2011, Harris engaged in a series of telephone conversations from Miami with a customer in California to discuss and arrange for the sale of black rhinoceros horns to the customer by a resident of Phoenix, Arizona. Harris reserved airline seats and a hotel room to facilitate his travel from Miami to Phoenix in July 2011. On July 23, 2011, Harris personally drove the customer, to the home of a Phoenix couple who were in possession of a full black rhinoceros shoulder mount, including the two horns of the taxidermied mount. At that meeting, the mount was purchased by the customer for approximately $60,000 in cash, and the rhinoceros horns pried from the head mount. To conceal the nature of the transaction and make it appear that the transaction was solely an intra-state deal, a false invoice was prepared, listing a third-party Arizona resident, also brought to the home by Harris, as the buyer. Harris was paid a “finder’s fee” by the California customer of approximately $10,000 for his services in locating the seller and arranging the deal.
Harris admitted to the Court that based on his prior familiarity with the California-based buyer, and his experience in the industry, he knew that the rhinoceros horns in question would be and in fact were, transported to California and thereafter exported from the United States without compliance with the laws and regulations governing such transactions.
Trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (“CITES”) since 1976. CITES is a treaty providing protection to fish, wildlife and plants that are or could become imperiled due to the demands of international markets. CITES has been signed by over 170 countries including the United States. CITES is implemented in the United States through the Endangered Species Act (“ESA”), 16 U.S.C. § 1538(c); 50 C.F.R. §§ 14 and 23. An animal species listed as protected under CITES cannot be exported from the United States without prior notification to, and approval from, FWS, pursuant to 50 C.F.R. §§ 20.13 and 20.20. Species protected under CITES are listed in a series of appendices (Appendices I, II and III) designating the level of protection afforded each species. Under Appendix II of CITES, a species can be exported from the United States to a foreign country only if, prior to exportation, the exporter possessed a valid CITES export permit issued by the United States. Under Appendix I of CITES, a species can only be exported from the United States if, prior to exportation, the exporter possesses a valid foreign import permit issued by the country of import and a valid export permit issued by the United States. All rhinoceros species are protected under either CITES Appendix I or II. The ESA also made it unlawful to export any endangered wildlife species pursuant to 16 USC ' 1538(a)(1)(A).
Rhinoceros are characterized by their enormous size, leathery skin and horns. Rhinoceros horn is a highly valued and sought after commodity despite the fact that international trade in it has been largely banned and otherwise highly regulated since 1976. Libation cups and other ornamental carvings are particularly sought after in China and other Asian countries as well as in the United States. The escalating value of these items has resulted in an increased demand for rhinoceros horn and helped to foster a thriving black market, including modern carvings being sold as antiques. Most species of rhinoceros are extinct or on the brink of extinction as a result of this thriving black market and export activity.
Mr. Ferrer commended the investigative efforts of the FWS Office of Law Enforcement who participated in the investigation dubbed “Operation Crash,” which is an ongoing multi-agency effort to detect, deter, and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns. This matter is being prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
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.
Member and Associate of Lucchese Organized Crime Family Convicted of Racketeering and Other CrimesRead the Press Release
A member and an associate of the Lucchese organized crime family and two Texas brothers were convicted today of racketeering and other charges after a six-month trial.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Paul J. Fishman for the District of New Jersey made the announcement.
Nicodemo S. Scarfo, 49, of Galloway, N.J., a member of the Lucchese organized crime family of La Cosa Nostra (LCN) and Salvatore Pelullo, 47, of Philadelphia, an associate of the Lucchese and Philadelphia LCN families, were convicted of all the counts against them, including racketeering conspiracy and related offenses, including securities fraud, wire fraud, mail fraud, bank fraud, extortion, money laundering and obstruction of justice. Two other defendants, William and John Maxwell, were also convicted. Co-defendants David Adler, Gary McCarthy and Donald Manno were acquitted on all counts.
“Nicodemo Scarfo, Salvatore Pellulo and their cohorts used threats of physical and economic harm to take over a publicly-traded financial firm, then callously and systematically looted the company out of millions of dollars to buy luxury items for themselves,” said Assistant Attorney General Caldwell. “As a result of today’s guilty verdict, this mafia member and his conspirators now face substantial prison sentences.”
“Today, four people stand convicted for giving new meaning to ‘corporate takeover’ – looting a publicly traded company to benefit their criminal enterprise,” U.S. AttorneyFishman said. “The defendants stole more than $12 million from shareholders through rampant self-dealing, fraudulent SEC filings and intimidation. The public should not have to worry that the interests of shareholders are being subverted to benefit organized crime or for other corrupt ends.”
The jury deliberated two weeks before delivering its verdicts following a six-month trial before U.S. District Judge Robert B. Kugler in Camden federal court. The defendants were charged in an indictment returned in 2011 by a federal grand jury in Camden. It named Nicodemo D. Scarfo (Scarfo Sr.) – Nicodemo S. Scarfo’s father and the imprisoned former boss of the Philadelphia LCN family – and Vittorio Amuso, the imprisoned boss of the Lucchese family, as conspirators.
Five other defendants – Cory Leshner, Howard Drossner, John Parisi, Todd Stark, and Scarfo’s wife, Lisa Murray-Scarfo – have previously pleaded guilty to various charges related to their roles in the criminal scheme.
According to documents filed in this case and the evidence at trial:
Scarfo is a made member of the Lucchese family, having become a member after an attempt on his life in 1989 following an internal struggle for control of the Philadelphia family. In the mid-1990s, while Scarfo Sr. and Amuso were in federal prison in Atlanta, Ga., Amuso arranged for Scarfo to become a member of the Lucchese family as a favor to Scarfo Sr. As a member of the Lucchese family, Scarfo was required to earn money and participate in the affairs of the Lucchese family.
In April 2007, Scarfo, Pelullo and others devised a scheme to take over FirstPlus Financial Group Inc. (FPFG), a publicly-held company in Texas. Scarfo and Pelullo used threats of economic harm to intimidate and remove the prior management and board of directors of replaced those officers with individuals beholden to Scarfo and Pelullo, including William Maxwell, an attorney from Houston, Texas, and his brother, John Maxwell, of Irving, Texas, who acted as the company’s CEO.
Once the takeover was completed, the figurehead board named William Maxwell as “special counsel” to FPFG, a position that he used to funnel approximately $12 million to himself, Scarfo and Pelullo through fraudulent legal services and consulting agreements. The agreements, as well as FPFG’s fraudulent acquisitions of companies controlled by Scarfo and Pelullo, were designed to mask the true identity and nature of the control exerted over FPFG and to conceal the source of the money fraudulently conveyed to Scarfo and Pelullo.
In a telephone call intercepted by law enforcement, Pelullo called Scarfo to tell him about the sudden death of a former FPFG executive. This former executive had provided information to Pelullo and Maxwell that they used to extort control of FPFG. At the time of his death, he was employed by FPFG as a member of its “compliance team.” During the conversation, Scarfo and Pelullo expressed relief regarding his death. After laughing about how he was “crushed” that “the rat is dead,” Pelullo acknowledged that the executive was “the only connection, the only tie to anything.” Scarfo replied: “Oh boy. Yeah, Sal, you wanna know something though? That’s one that I know you can’t take credit for . . . [laughter] . . . and that’s the natural best thing. You know what I mean? That is so like Enron-ish. You know what I mean? Kenneth Lay, he bailed out and took a heart attack."
Scarfo and Pelullo used their illicit gains to fund extravagant purchases, including an $850,000 yacht for both defendants, a luxury home for Scarfo, a Bentley automobile for Pelullo, and thousands of dollars in jewelry for Scarfo’s wife. As a direct result of the enterprise’s criminal activity, FPFG and its shareholders suffered a loss of at least $12 million.
Sentencing for Scarfo is scheduled for Oct. 22, 2014; for Pelullo, Oct. 21, 2014, and for both Maxwell brothers, Oct. 23, 2014.
This case was investigated by the FBI, Department of Labor Office of Inspector General, Office of Labor Racketeering and Fraud Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Trial Attorney Adam L. Small of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Steven D’Aguanno and Howard Wiener of the District of New Jersey’s Organized Crime/Gangs Unit.Member and Associate of Lucchese Organized Crime Family Convicted of Racketeering and Other CrimesRead the Press Release
Attorney and Company CEO also Convicted in Illegal Takeover and Looting
of Publicly Traded CompanyCAMDEN, N.J. – A member and an associate of the Lucchese organized crime family and two Texas brothers were convicted today of racketeering and other charges after a six-month trial, U.S. Attorney Paul J. Fishman for the District of New Jersey and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division announced.
Nicodemo S. Scarfo, 49, of Galloway, N.J., a member of the Lucchese organized crime family of La Cosa Nostra (LCN) and Salvatore Pelullo, 47, of Philadelphia, an associate of the Lucchese and Philadelphia LCN families, were convicted of all the counts against them, including racketeering conspiracy and related offenses, including securities fraud, wire fraud, mail fraud, bank fraud, extortion, money laundering and obstruction of justice. Two other defendants, William and John Maxwell, were also convicted. Co-defendants David Adler, Gary McCarthy and Donald Manno were acquitted on all counts.
“Today, four people stand convicted for giving new meaning to ‘corporate takeover’ – looting a publicly traded company to benefit their criminal enterprise,” U.S. Attorney Fishman said. “The defendants stole more than $12 million from shareholders through rampant self-dealing, fraudulent SEC filings and intimidation. The public should not have to worry that the interests of shareholders are being subverted to benefit organized crime or for other corrupt ends.”
“Nicodemo Scarfo, Salvatore Pellulo and their cohorts used threats of physical and economic harm to take over a publicly traded financial firm, then callously and systematically looted the company out of millions of dollars to buy luxury items for themselves,” Assistant Attorney General Caldwell said. “As a result of today’s guilty verdict, this mafia member and his conspirators now face substantial prison sentences.”
The jury deliberated two weeks before delivering its verdicts following a six-month trial before U.S. District Judge Robert B. Kugler in Camden federal court. The defendants were charged in an indictment returned in 2011 by a federal grand jury in Camden. It named Nicodemo D. Scarfo (Scarfo Sr.) – Nicodemo S. Scarfo’s father and the imprisoned former boss of the Philadelphia LCN family – and Vittorio Amuso, the imprisoned boss of the Lucchese family, as conspirators.
Five other defendants – Cory Leshner, Howard Drossner, John Parisi, Todd Stark, and Scarfo’s wife, Lisa Murray-Scarfo – have previously pleaded guilty to various charges related to their roles in the criminal scheme.
According to documents filed in this case and the evidence at trial:
Scarfo is a made member of the Lucchese family, having become a member after an attempt on his life in 1989 following an internal struggle for control of the Philadelphia family. In the mid-1990s, while Scarfo Sr. and Amuso were in federal prison in Atlanta, Amuso arranged for Scarfo to become a member of the Lucchese family as a favor to Scarfo Sr. As a member of the Lucchese family, Scarfo was required to earn money and participate in the affairs of the Lucchese family.
In April 2007, Scarfo, Pelullo and others devised a scheme to take over FirstPlus Financial Group Inc. (FPFG), a publicly held company in Texas. Scarfo and Pelullo used threats of economic harm to intimidate and remove the prior management and board of directors of replaced those officers with individuals beholden to Scarfo and Pelullo, including William Maxwell, an attorney from Houston, Texas, and his brother, John Maxwell, of Irving, Texas, who acted as the company’s CEO.
Once the takeover was completed, the figurehead board named William Maxwell as “special counsel” to FPFG, a position that he used to funnel $12 million to himself, Scarfo and Pelullo through fraudulent legal services and consulting agreements. The agreements, as well as FPFG’s fraudulent acquisitions of companies controlled by Scarfo and Pelullo, were designed to mask the true identity and nature of the control exerted over FPFG and to conceal the source of the money fraudulently conveyed to Scarfo and Pelullo.In a telephone call intercepted by law enforcement, Pelullo called Scarfo to tell him about the sudden death of a former FPFG executive. This former executive had provided information to Pelullo and Maxwell that they used to extort control of FPFG. At the time of his death, he was a member of FPFG’s “compliance team.” Scarfo and Pelullo expressed relief regarding his death. After laughing about how he was “crushed” that “the rat is dead,” Pelullo acknowledged that the executive was “the only connection, the only tie to anything.” Scarfo replied: “Oh boy. Yeah, Sal, you wanna know something though? That’s one that I know you can’t take credit for . . . [laughter] . . . and that’s the natural best thing. You know what I mean? That is so like Enron-ish. You know what I mean? Kenneth Lay, he bailed out and took a heart attack.”
Scarfo and Pelullo used their illicit gains to fund extravagant purchases, including an $850,000 yacht for both defendants, a luxury home for Scarfo, a Bentley automobile for Pelullo, and thousands of dollars in jewelry for Scarfo’s wife. As a direct result of the enterprise’s criminal activity, FPFG and its shareholders suffered a loss of at least $12 million.
The conspiracy to commit bank fraud count carries a maximum potential penalty of 30 years in prison and a $1 million fine; the RICO conspiracy, wire fraud conspiracy, wire fraud, conspiracy to obstruct justice counts each carry a maximum potential penalty of 20 years in prison and a $250,000 fine; the conspiracy to commit money laundering and felon in possession of a weapon counts each carry a maximum potential penalty of 10 years in prison and a $250,000 fine; the securities fraud conspiracy, conspiracy to make false statements in a loan application and conspiracy to transfer firearms to a prohibited person counts each carry a maximum potential penalty of five years in prison and a $250,000 fine.Sentencing for Scarfo is scheduled for Oct. 22, 2014; for Pelullo, Oct. 21, 2014; and for both Maxwell brothers, Oct. 23, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia, New York Region; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Robin Shoemaker in Newark. He also thanked the FBI in Philadelphia, under the direction of Special Agent in Charge Edward J. Hanko, and the U.S. Securities and Exchange Commission for their roles in the investigation.
The government is represented by Assistant U.S. Attorney Steven D’Aguanno and Howard Wiener of the District of New Jersey’s Organized Crime/Gangs Unit and Trial Attorney Adam L. Small of the Criminal Division’s Organized Crime and Gang Section.
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Defense counsel:
Scarfo: Michael E. Riley Esq., Mount Holly, N.J.
Pelullo: J. Michael Farrell Esq., Wenonah, N.J.
William Maxwell: Michael N. Huff Esq., Philadelphia
John Maxwell: Mark W. Catanzaro Esq., Mount Holly
David Adler: Barry I. Gross Esq., Philadelphia
Gary McCarthy: Yune T. Do Esq., Philadelphia
Donald Manno: Donald Francis Manno Esq., Cherry Hill, N.J.Mason City Man Pleads Guilty to Distributing Child PornographyRead the Press Release
A man who distributed child pornography pled guilty today in federal court in Cedar Rapids.
Jamison Miller, age 41, from Mason City, Iowa, was convicted of one count of distribution of child pornography.
At the plea hearing, Miller admitted that, between September 2012 and April 2013, he distributed child pornography. He also admitted that, in 2000, he was convicted of an offense relating to the possession of child pornography.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Miller remains in custody of the United States Marshal pending sentencing. Miller faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 40 years’ imprisonment, a $250,000 fine, a $100 special assessment, and supervised release for 5 years to life following his imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the U.S. Marshals Service, and the Federal Bureau of Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 14-3010.
Managers Sentenced to Prison in Loan Modification Fraud Scheme CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, and Ronald J. Verrochio, Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, announce that Ajay Thuraisingham, 27, of Ontario, Canada, and co-defendant Christopher Duharte, 36, of Coconut Creek, were sentenced by U.S. District Judge Kenneth Marra to 54 months in prison, and to 30 months in prison, respectively. Both defendants were also sentenced to three years of supervised release and payment of restitution in an amount to be determined. Both defendants previously pled guilty to charges of conspiracy to commit mail fraud and wire fraud, and mail fraud, in violation of Title 18, United States Code, Sections 1349 and 1341.
Eight of ten defendants charged in this case have pled guilty to the charges, which involved a scheme to bilk thousands of homeowners who were struggling to make their mortgage payments. Defendants Jason Vitulano and Jeffrey Taylor are currently set for trial starting on November 10, 2014.
According to the indictment and other documents filed in the case, between September 2008 and August 2009, the defendants operated boiler rooms that collected advance fees from distressed homeowners purportedly in exchange for obtaining loan modifications for the homeowners which were, with few exceptions, never provided.
The other defendants who have previously pled guilty include the following, with their respective scheduled sentencing dates:
Brian Fleuridor, 30, of Delray Beach, sentencing set for September 5, 2014 at 2:30 p.m.
Peter Brown, 27, of Sound Beach, NY, sentencing set for August 1, 2014 at 9:30 a.m.
Neil Sack, 40, of Ft. Lauderdale, sentencing set for August 8, 2014 at 2:00 p.m.
Gregory Small, 29, of Boca Raton, sentencing set for August 8, 2014 at 1:30 p.m.
Arthur Fogarty, 57, of Hollywood, sentencing set for August 15, 2014 at 11:30 a.m.
Robert Bacon, 35, West Newbury, MA, sentencing set for August 15, 2014 at 3:00 p.m.
The indictment alleges that Jason Vitulano was the organizer and operator of FHA All Day.com, Inc. and two other companies, Housing Assistance Law Center, Inc. and Safety Financial Corp., which operated the boiler rooms in Boca Raton and later in Deerfield Beach. According to the indictment and the factual proffers submitted in support of the guilty pleas, Robert Bacon was an operations manager who wrote and edited sales scripts, while the other eight defendants served as team managers of four to eight telemarketers who made thousands of phone calls to homeowners behind on their mortgage payments.
As alleged in the indictment, the defendants made false statements to the homeowners including telling homeowners they had already been approved or pre-approved for a loan modification that would save the homeowner a specific amount off their mortgage payment, reducing the interest rate and often the principal balance on the mortgage loan. The defendants, according to the indictment, routinely told customers that they had been approved by an “underwriter” and that they had a team of “expert attorneys” who would finalize the loan modifications.
The indictment further alleges that the defendants targeted homeowners across the country who were facing foreclosure, falsely telling them that the company would stop the foreclosure process and that homeowners could stop making mortgage payments while they waited for the company to finalize their loan modifications. FHA All Day, as alleged in the indictment, moved its offices and changed the corporate name several times to avoid law enforcement scrutiny and to hamper consumer complaints. Through the use of these and other false representations, the defendants, according to the indictment, induced over 2,000 distressed homeowners to pay up front fees totaling more than seven million dollars to the defendants.
Mr. Ferrer commended the investigative efforts of USSS and USPIS. This case is being prosecuted by Assistant U.S. Attorney Lauren Jorgensen in the West Palm Beach Office.
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.
Lower Brule Man Sentenced for Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man convicted of Sexual Abuse of a Minor was sentenced on June 30, 2014, by U.S. District Judge Roberto A. Lange.
Gerald Duane Iron Shooter, age 21, was sentenced to 14 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Iron Shooter was indicted by a federal grand jury on February 12, 2014. He pled guilty on April 1, 2014.
The conviction stems from an incident in January of 2012 when Iron Shooter was at a party with two other adult men. Later in the evening, several underage girls, including the 13 year-old victim, joined the party. The girls began to drink with the men. During the party, the victim and Iron Shooter ended up in a bedroom where they had sexual intercourse. Iron Shooter admitted knowing the age of the victim and that she was too young to engage in any type of sexual activity.
This case was investigated by the Bureau of Indian Affairs, Lower Brule Law Enforcement Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Iron Shooter was immediately turned over to the custody of the U.S. Marshals Service.
Las Vegas Attorney Indicted for Child Exploitation Offenses Committed in BakersfieldRead the Press Release
FRESNO, Calif. — A grand jury in Fresno returned an indictment today against Charles Max Pollock, 43, of Las Vegas, charging him with two counts of travel with intent to engage in illicit sexual conduct and two counts of sexual exploitation of a minor, United States Attorney Benjamin B. Wagner announced.
Pollock is an attorney who is licensed to practice law in Nevada and California. He has been in custody in Clark County, Nevada since September of 2013 on other charges. According to the criminal complaint previously brought against Pollock, he used an alias and posed as a photographer to contact an adult female who had posted an advertisement on Craigslist in Bakersfield seeking a modeling opportunity. The ad noted that her minor son had experience as a model. Pollock traveled from Las Vegas to Bakersfield, rented a hotel room, and took sexually explicit images of the minor. Pollock returned to Las Vegas and continued to communicate with the minor and his mother. Pollock arranged to meet the minor and the minor’s girlfriend at a different hotel in Bakersfield on August 15, 2013. He encouraged the minors to engage in sexually explicit conduct for purposes of taking photographs of the minors. Pollock paid the minors for each of the “photo shoots” and encouraged them not to tell anyone about the conduct.
This case is the result of an investigation by the Federal Bureau of Investigation and the Bakersfield Police Department. Assistant United States Attorney David Gappa is prosecuting this case.
If convicted, Pollock faces a maximum penalty of 30 years in prison, a $250,000 fine, and a lifetime term of supervised release for each of the four counts. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.Lackawanna Man Sentenced for Drug TraffickingRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Yasin Abdulla, 35, of Lackawanna, N.Y., who was convicted of conspiracy to possess with intent to distribute marijuana, was sentenced to 24 months in prison by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that between late 2005 and May of 2007, co-defendant Mohamed Taher ran a long running, multi-faceted criminal enterprise that employed multiple narcotics traffickers, including the defendant. Taher and the enterprise imported marijuana into the United States from Canada, and then distributed the marijuana to others in Detroit, Chicago and Buffalo.
Mohamed Taher was convicted at trial and was sentenced to 25 years in prison. Defendants Abdulfatah Mosed, Salah Mohamed Ahmed, Basheer Saleh, and Bradley Parry were also convicted of conspiracy to possess with intent to distribute marijuana.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, Customs and Border Protection, under the direction Randy Howe, Director of Field Operations, the New York State Police, under the direction of Major Michael Cerretto, the Michigan State Police and the Willoughby Hills, Ohio Police Department.Kern County Man Caught Fleeing A Remote Marijuana Grow Is Indicted on Cultivation ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Lazaro Sanchez-Lopez, 23, of Lamont, charging him with conspiracy to manufacture marijuana, manufacturing of marijuana and depredation of public lands, United States Attorney Benjamin B. Wagner announced.
According to court documents, on June 20, 2014, agents hiked for nearly two hours to execute a search warrant at a marijuana grow in the remote Flying Dutchman Creek drainage area in Kern County on Bureau of Land Management lands. Sanchez-Lopez was apprehended as he fled the grow area.
A total of 5,681 marijuana plants were eradicated from at least five separate plots. The site was littered with trash, irrigation hosing and camping supplies. The hillside was terraced by the growers and native vegetation was cut and removed to make room for the plants.
This case is the product of an investigation by the United States Forest Service, Bureau of Land Management, and the Kern County Sheriff’s Office. Assistant United States Attorney Michael Frye is prosecuting the case.
If convicted, Lazaro faces a maximum statutory penalty of 20 years in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Kenel Man Charged with Aggravated Sexual Abuse, Kidnapping and AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Kenel, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse, Kidnapping, Assault with a Dangerous Weapon, Assault of a Spouse by Strangulation, and Domestic Assault by a Habitual Offender.
Denny Johnson, Sr., age 29, was indicted on June 17, 2014. He appeared before U.S. Magistrate Judge William D. Gerdes on June 30, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, a mandatory minimum term of five years of supervised release, and up to $900 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between the timeframe of December 1, 2013, to January 10, 2014, Johnson caused an adult female to engage in sexual acts and placed her in fear that she would be subjected to death, serious bodily injury, and kidnapping; kidnapped and held the female victim against her will, for the purpose of assaulting her with dangerous weapons, that is shod feet and a knife with the intent to do bodily harm; assaulted the victim by strangling and suffocating her; and committed a domestic assault against the same female victim. At the time of the domestic assault, Johnson had at least two separate prior convictions for assaults that were against a spouse or intimate partner.
The charges are merely accusations and Johnson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Johnson was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for September 2, 2014.
Glassport Man Charged with Distribution and Possession of Child PornographyRead the Press Release
PITTSBURGH – An Allegheny County man was indicted on June 24, 2014, by a federal grand jury in Pittsburgh on charges of distribution and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The three-count indictment named Michael George Hadam, 59, of Glassport, Pa., as the sole defendant.
According to the indictment, from on or about April 9, 2014 to on or about April 11, 2014 and from on or about April 12, 2014 to on or about April 13, 2014, Hadam distributed videos containing material depicting the sexual exploitation of minors. The indictment further alleges that on or about May 15, 2014, Hadam knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
The law provides for a maximum total sentence of 60 years in prison, a fine of $750,000 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 Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the Pennsylvania Office of the Attorney General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
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.
Former U.S. Navy Officer Pleads Guilty in International Bribery ScandalRead the Press Release
A retired Navy official who started a second career working for defense contractor Glenn Defense Marine Asia (GDMA) pleaded guilty in federal court today, admitting that he and others overcharged the Navy by up to $2.5 million for port services to American ships and then used some of the proceeds to treat Navy officials to lavish dinners, cocktails and entertainment.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Laura E. Duffy for the Southern District of California, Director Andrew L. Traver of Naval Criminal Investigative Service (NCIS) and Acting Deputy Inspector General of Investigations James R. Ives of the Department of Defense (DCIS) made the announcement.
“There is an old Navy saying: ‘Not self, but country.’ Edmond Aruffo instead put self before country when he stole from the U.S. Navy as part of a massive fraud and bribery scheme that cost the U.S. Navy more than $20 million ,” said Assistant Attorney General Caldwell.
“This corruption scandal continues to lead us in new directions, and we continue to marvel at the extent of it,” said U.S. Attorney Laura Duffy. “If there are others who, like Edmond Aruffo, have traded integrity and honesty for greed and profit, we will find them and prosecute them.”
“Retired U.S. Navy Lieutenant Commander Edmond A. Aruffo, who previously held a position of trust and responsibility conferred on him by the Navy, betrayed his former service for personal gain by rigging invoices and deserves to be held accountable for his criminal actions,” said Director Traver. “NCIS will continue to work with DCIS and the Department of Justice in vigorously investigating and prosecuting these crimes of corruption and fraud.”
“The guilty plea of Edward Aruffo is part of an ongoing effort by the DCIS and its law enforcement partners to bring to justice individuals who seek to illegally enrich themselves at the expense of U.S. taxpayers,” said Acting Deputy Inspector General Ives. “While the vast majority of DOD contractors engage in lawful business practices, a few are driven by greed to break the law. Those who do will be caught and punished. American taxpayers will accept nothing less.”
Edmond A. Aruffo, who retired in 2007 at the rank of lieutenant commander after a military career spanning more than 20 years, is the seventh defendant charged – and the fourth to plead guilty – in the expanding corruption scandal involving GDMA’s illicit relationships with Navy officials. GDMA is a Singapore-based contractor that has serviced Navy ships and submarines in the Pacific for decades.
Aruffo, who became manager of GDMA’s Japan operations in 2009, entered his plea before U.S. Magistrate Judge Karen S. Crawford of the Southern District of California to a single count of conspiracy to defraud the United States. Aruffo’s bond was set at $40,000; however, he indicated to the court he not post bond and immediate self-surrender. A sentencing hearing was scheduled for Oct. 3, 2014, at 9 a.m. before U.S. District Judge Janis L. Sammartino of the Southern District of California.
According to court documents, GDMA owner and CEO Leonard Francis enlisted the clandestine assistance of Navy personnel – including Commander Michael Vannak Khem Misiewicz, Commander Jose Luis Sanchez, NCIS Special Agent John Beliveau and Petty Officer First Class Daniel Layug – to provide classified ship schedules and other sensitive information about an ongoing criminal investigation of GDMA. Court documents also allege that Francis and his cousin, GDMA executive Alex Wisidagama, conspired to defraud the United States through a number of overbilling schemes. In total, GDMA allegedly overcharged the Navy under its contracts and submitted bogus invoices for more than $20 million. Wisidagama, Beliveau and Layug have pleaded guilty while the others are awaiting trial.
According to Aruffo’s plea agreement, Aruffo was hired by GDMA’s Francis, who is accused of bribing Navy personnel with cash, luxury travel, expensive meals, consumer electronics and prostitutes in exchange for classified and proprietary information to win contracts and favorable treatment for his company.
According to the plea agreement, Aruffo was serving as the operations officer of the USS Blue Ridge when he met Francis. GDMA was providing “husbanding” services, such as tug boats, harbor pilots, trash removal, line handlers and transportation to that ship and numerous others.
In the plea agreement, Aruffo admitted that he and others defrauded the U.S. Navy in connection with charges for port services provided to nearly every Navy ship that came to port in Japan from July 2009 to September 2010.
As part of its contract with the Navy, GDMA was required to coordinate various vendors to provide port services for the Navy ships. Those vendors were to submit invoices directly to the Navy, rather than through GDMA.
The plea agreement said that Aruffo and others obtained letterhead from the Japanese vendors and used it to prepare bogus invoices which inflated the cost for services by tens of thousands of dollars. Aruffo admitted he arranged kickbacks to GDMA from the vendors, once they were paid by the Navy.
For example, according to the plea agreement, in February of 2010 the USS Lake Erie visited the port of Sukomo, Japan. Aruffo arranged for a Japanese vendor to provide a variety of husbanding services. The vendor invoiced the Navy $145,229.77 – an amount inflated by about $50,000, which the vendor ultimately gave to GDMA as a kickback.
A few days later, Aruffo arranged for another Japanese vendor to provide such services to the USS Blue Ridge at the port of Otaru, Japan, the plea agreement said. The vendor billed the Navy in the amount of $432,476.14 and then kicked back $204,961.20 to GDMA.
The ongoing investigation is being conducted by NCIS, DCIS and the Defense Contract Audit Agency. The case is being prosecuted by Director of Procurement Fraud Catherine Votaw and Trial Attorneys Brian Young and Wade Weems of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mark Pletcher and Robert Huie of the Southern District of California.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline , or call (800) 424-9098.Former U.S. Navy Officer Pleads Guilty in International Bribery Scandal; Defendant Admits Overcharging the Navy by up to $2.5 Million for Port Services in JapanRead the Press Release
SAN DIEGO – A retired Navy official who started a second career orking for defense contractor Glenn Defense Marine Asia (GDMA) pleaded guilty in federal court today, admitting that he and others overcharged the Navy by up to $2.5 million for port services to American ships and then used some of the proceeds to treat Navy officials to lavish dinners, cocktails and entertainment.
Edmond A. Aruffo, who retired in 2007 at the rank of lieutenant commander after a military career spanning more than 20 years, is the seventh defendant charged – and the fourth to plead guilty - in the expanding corruption scandal involving GDMA’s illicit relationships with Navy officials. GDMA is a Singapore-based contractor that has serviced Navy ships and submarines in the Pacific for decades.
Aruffo, who became manager of GDMA’s Japan operations in 2009, entered his plea before U.S. Magistrate Judge Karen S. Crawford to a single count of conspiracy to defraud the United States. Aruffo’s bond was set at $40,000; however he indicated to the court he not post bond and immediately self-surrender. A sentencing hearing was scheduled for October 3, 2014 at 9 a.m. before U.S. District Judge Janis L. Sammartino.
“This corruption scandal continues to lead us in new directions, and we continue to marvel at the extent of it,” said U.S. Attorney Laura Duffy. “If there are others who, like Edmond Aruffo, have traded integrity and honesty for greed and profit, we will find them and prosecute them.”
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division said: “There is an old Navy saying: ‘Not self, but country.’ Edmond Aruffo instead put self before country when he stole from the U.S. Navy as part of a massive fraud and bribery scheme that cost the U.S. Navy more than $20 million.”
“Retired U.S. Navy Lieutenant Commander Edmond A. Aruffo who previously held a position of trust and responsibility conferred on him by the Navy betrayed his former Service for personal financial gain by rigging invoices and deserves to be held accountable for his criminal actions. NCIS will continue to work with the Defense Criminal Investigative Service and the US Attorney's Office in vigorously investigating and prosecuting these crimes of corruption and fraud.”
“The guilty plea of Edward Aruffo is part of an ongoing effort by the Defense Criminal Investigative Service and its law enforcement partners to bring to justice individuals who seek to illegally enrich themselves at the expense of U.S. taxpayers," said James R. Ives, Acting Deputy Inspector General for Investigations, U.S. Department of Defense. “While the vast majority of DoD contractors engage in lawful business practices, a few are driven by greed to break the law. Those who do will be caught and punished. American taxpayers will accept nothing less.”
According to court documents, GDMA owner and CEO Leonard Francis and his cousin, GDMA executive Alex Wisidigama, enlisted the clandestine assistance of Navy personnel - including Commander Michael Vannak Khem Misiewicz, Commander Jose Luis Sanchez, Naval Criminal Investigative Service Special Agent John Beliveau and Petty Officer First Class Daniel Layug - to provide classified ship schedules and other sensitive information about an ongoing criminal investigation of GDMA. In total, GDMA allegedly overcharged the Navy under its contracts and submitted bogus invoices for more than $20 million. Wisidagama, Beliveau and Layug have pleaded guilty; the others are awaiting trial.
According to his Arrufo’s plea agreement, Aruffo was hired by GDMA’s Francis, who is accused of bribing Navy personnel with cash, luxury travel, expensive meals, consumer electronics and prostitutes in exchange for classified and proprietary information to win contracts and favorable treatment for his company.
According to the plea agreement, Aruffo was serving as the operations officer of the USS Blue Ridge when he met Francis. GDMA was providing “husbanding” services, such as tug boats, harbor pilots, trash removal, line handlers and transportation, to that ship and numerous others, including.
The plea agreement said Aruffo and others defrauded the U.S. Navy in connection with charges for port services provided to nearly every Navy ship that came to port in Japan from July 2009 to September 2010.
As part of its contract with the Navy, GDMA was required to coordinate various vendors to provide port services for the Navy ships. Those vendors were to submit invoices directly to the Navy, rather than through GDMA.
The plea agreement said Aruffo and others obtained letterhead from the Japanese vendors and used it to prepare bogus invoices which inflated the cost for services by tens of thousands of dollars. Aruff admitted he arranged kickbacks to GDMA from the vendors, once they were paid by the Navy.
For example, according to the plea agreement, in February of 2010 the USS Lake Erie visited the port of Sukomo, Japan. Aruffo arranged for a Japanese vendor to provide tugboats, harbor pilots, trash removal, line handlers, transportation and other services. The vendor invoiced the Navy $145,229.77 – an amount inflated by about $50,000, which the vendor ultimately gave to GDMA as a kickback.
A few days later, Aruffo arranged for another Japanese vendor to provide such services to the USS Blue Ridge at the port of Otaru, Japan, the plea agreement said. The vendor billed the Navy in the amount of $432,476.14 and then kicked back $204,961.20 to GDMA.
The ongoing investigation is being conducted by NCIS, the Defense Criminal Investigative Service and the Defense Contract Audit Agency.
The case is being prosecuted by Assistant U.S. Attorneys Mark Pletcher and Robert Huie of the Southern District of California, Director of Procurement Fraud Catherine Votaw and Trial Attorneys Brian Young and Wade Weems of the Criminal Division’s Fraud Section.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
DEFENDANT Case Number: 14cr1924 Edmond A. Aruffo Age: 45 San Diego, California CHARGESConspiracy to Defraud the United States, in violation of 18 U.S.C. § 371
INVESTIGATING AGENCY
Maximum of 5 years in prison; a maximum $250,000 fine, or twice the gross gain or loss from the offense, whichever is greater.Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Former NFL Player and Wife Sentenced to Tax ChargesRead the Press Release
HONOLULU – Charles Loewen (“Loewen”), age 57, the owner of Paradise Stone & Tile, resident of Maui, and former National Football League player for the San Diego Chargers, was sentenced to 37 months imprisonment, 3 years supervised release, a $10,000 fine, and $235,288 in restitution for felony charges for conspiring to defraud the United States and filing a false claim for tax refund today before United States District Judge Derrick K. Watson. Judge Watson also sentenced Paula Loewen, age 56, to three years probation, a $5,000 fine, and $5,034 in restitution for failing to file taxes in 2007.
United States Attorney Florence T. Nakakuni said that, according to the First Superseding Indictment, Loewen conspired to use a scheme in which he and his wife falsely claimed tax refunds from the Internal Revenue Service (“IRS”) totaling $2,353,173.22. Loewen, who has a Master’s Degree in Business Administration, created fake supporting tax documentation, specifically, phony 1099-OID Forms, to make it appear as if the IRS owed him a large tax refund, when in fact the IRS did not.
According to information produced in court, Loewen conspired with Gerald Poynter, a/k/a Brother Jerry Love, a 1099-OID scheme promoter who was charged and sentenced in a 1099-OID fraud scheme in Kansas City, in the Western District of Missouri, involving a $96 million fraud.
Also according to information produced in court, after the State of Hawaii Department of Taxation levied two of Loewen’s Territorial Savings Bank accounts, he closed these accounts. Loewen directed his wife to open an Arizona bank account in her name only, in order to conceal his income, and he then began depositing his Paradise Stone & Tile business income into this Arizona account. Loewen later submitted false federal tax returns to the IRS claiming that he earned zero net income for three tax years, when in fact he had earned net income for those years. Loewen has failed to pay the over $127,000.00 in taxes that he owes the State of Hawaii for Tax Years 2004, 2005, 2006, 2007, and 2008. Loewen ignored past due notices from the IRS or sent frivolous correspondence to tax authorities for tax years going back to 1995.
Also according to information produced in court, Loewen recently disclosed a net worth with his wife of over $1.5 million dollars to federal authorities, including $260,000 in tools and gold bullion and $695,000 in an offshore account.
The case was investigated by the Internal Revenue Service -- Criminal Investigation. The prosecution was handled by Assistant United States Attorney Cynthia Lie.
Former Hospital Employee Indicted for Criminal Hipaa ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas — A former employee of an East Texas hospital has been indicted for criminal violations of the Health Insurance Portability and Accountability Act, more commonly known as HIPAA, in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Joshua Hippler, 30, formerly of Longview, Texas, was indicted on charges of Wrongful Disclosure of Individually Identifiable Health Information. According to the indictment, from December 1, 2012, through January 14, 2013, Hippler, who was then an employee of a covered entity under HIPAA, obtained protected health information with the intent to use the information for personal gain. HIPAA contains provisions protecting the privacy of individually identifiable health information.
If convicted, Hippler faces up to ten years in prison.
The investigation leading to the charges was conducted by agents from the U.S. Department of Health and Human Services - Office of Inspector General (HHS-OIG) and the U.S. Postal Inspection Service. Assistant United States Attorney Nathaniel C. Kummerfeld is prosecuting the case.
A grand jury indictment is not evidence of guilt and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Florida Man Pleads Guilty to a Fraud ChargeRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that HECTOR ORTIZ, 49, of Orlando, Florida, pleaded guilty before U.S. District Judge Frank P. Geraci, to committing wire fraud, which carries a maximum penalty of 20 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Bradley E. Tyler, who handled the case, stated that the defendant from in or about September 2011 and continuing thereafter until on or about January 1, 2012, in the Western District of New York, devised a scheme to defraud Sweeteners Plus, Inc. in Lakeville, N.Y. Specifically, the defendant attempted to obtain $7,862,500 from Sweeteners Plus by making multiple false and fraudulent representations in relation to a contract to deliver 12,500 metric tons of refined sugar.
The plea was the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent In Charge Brian P. Boetig, and Postal Inspectors with the United States Postal Inspection Service, under the direction of Inspector In Charge Shelley Binkowski.
Sentencing is scheduled for September 11, 2014, at 9:30 a.m. before Judge Geraci.Dublin Man Sentenced to over 21 Years for Distribution of Child PornographyRead the Press Release
AUGUSTA, GA – Herbert Eugene Burroughs, 47, of Dublin, Georgia was sentenced last week by United States District Court Senior Judge Dudley H. Bowen, Jr. to over 21 years (262 months) in prison, followed by ten years of supervised release, for distributing child pornography. Burroughs pled guilty to two counts of distributing child pornography in December 2013. He will be required to register as a sex offender.
According to the evidence presented at Burroughs’s plea and sentencing hearings, between April and June 2013, Burroughs, who was in Dublin, exchanged email messages with, and distributed child pornography to, a person he believed to be the mother of two young girls in Maryland, in an effort to meet the woman and her children to engage in illicit sexual conduct with the girls. In fact, the mother was an undercover FBI agent working to identify and arrest child predators. After obtaining a federal search warrant to review Burroughs’s email account, agents found that during that same time period and continuing at least until August of 2013, Burroughs actively traded child pornography with others through numerous email communications. He had approximately 3,200 images and 164 videos depicting child sexual abuse in his account.
When imposing the lengthy prison sentence, Judge Bowen noted the troubling nature of the evidence in the case and the need to provide an example to others who may be similarly inclined. At the conclusion of the hearing, Burroughs was returned to the custody of the United States Marshal Service to serve his sentence.
United States Attorney Edward J. Tarver stated, “It is beyond shocking that an adult would send child pornographic images to a mother of two young girls, in order to arrange to have sex with those girls. It is impossible to know how many other children may have been at risk if Burroughs had not been identified and stopped. Burroughs committed a serious crime for which lengthy punishment is justified. There is no higher priority than the protection of our nation’s children. This United States Attorney’s Office will continue its efforts to prosecute those who endanger the safety of our children.”
Special Agent in Charge, FBI Atlanta Field Office, J. Britt Johnson, stated, “This investigation was the result of information sharing and coordination among several components within the FBI that learned of Burroughs and his activities online which further led to his identification and arrest. It is the hope of the FBI that others engaged in similar activities to the distribution of child pornography will take note of the significant prison sentence handed down to Mr. Burroughs in federal court”
This case was investigated by FBI SA Daniel E. O'Donnell and SA Jacqueline Dougher from Baltimore, who work with the FBI's Violent Crimes Against Children (VCAC), Major Case Coordination Unit (MCCU), and by FBI SA Edward Sutcliff in Statesboro, Georgia.This case was brought as part of Project Safe Childhood, a U. S. Department of Justice initiative designed to protect children from online exploitation and abuse. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.
Assistant United States Attorney Nancy Greenwood, Deputy Criminal Chief in the Augusta U. S. Attorney’s Branch Office and Project Safe Childhood Coordinator, prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Cuban Alien Smuggler ConvictedRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found Yoel Emilio Baez-Hernandez (41), a Cuban citizen with lawful permanent residence in the United States, guilty of conspiring to bring 73 Cuban aliens to the United States, and bringing 13 Cuban aliens to the United States. Baez-Hernandez faces a maximum penalty of 10 years in federal prison for each alien he conspired to bring into the United States. In addition, he faces a mandatory minimum sentence of 5 years, up to 15 years in federal prison for bringing the 13 illegal aliens into the country. His sentencing hearing is scheduled for September 19, 2014. Baez-Hernandez was indicted on February 20, 2014. He was charged by a superseding indictment on May 15, 2014.
According to the testimony of the three co-conspirators and other evidence presented at trial, Baez-Hernandez, Carlos Velazquez-Roman, and Edel Mesa-Hernandez conspired in late 2006 to early 2007 to bring Cuban aliens to the Port Charlotte area from the Pinar del Rio Provence located in north-western Cuba. From February 2007 through December 2009, they used Baez-Hernandez’s fast-boat, a two-outboard-engine Renegade, as one of the vessels to travel to Cuba and back. They brought the individuals to the west coast of Florida and then caused them to be transported to the Miami area. The Cuban aliens then turned themselves into immigration authorities as having just landed nearby. The jury found that Baez-Hernandez conspired to bring 73 illegal aliens to the United States and that he and Velazquez-Roman brought 13 illegal aliens to the United States from Cuba on May 26-27, 2009. The testimony established that the conspirators charged approximately $10,000 per person to bring the aliens to the United States from Cuba.
A total of six individuals were charged in this case. Five previously pleaded guilty for their roles and are currently awaiting sentencing.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Border Patrol, and the United States Coast Guard. It is being prosecuted by Senior Litigation Counsel Donald L. Hansen and Assistant United States Attorney Natalie Hirt Adams.
Court Prohibits Mississippi Tax Preparer from Preparing Tax Returns for OthersRead the Press Release
A federal court has permanently barred Kavivah Branson, aka Kavivah Bradley, of Clinton, Mississippi, and her Jackson, Mississippi, business, Branson Tax Service, from preparing federal tax returns for others, the Justice Department announced today. The civil injunction order, to which Branson consented, was signed by Judge Tom S. Lee of the U.S. District Court for the Southern District of Mississippi.
According to the complaint, Branson prepared federal income tax returns for customers that understated the tax actually due. The complaint also alleged that Branson claimed improper earned income tax credits and education credits for her customers without performing the required due diligence and despite the absence of any supporting documentation, leading to the understatements. These unsubstantiated credits often resulted in overstated refunds because the credits claimed on the returns were refundable. Consequently, even taxpayers who report no federal tax liability could have received a refund up to the amount of the refundable credit claimed.
According to the complaint, over 99 percent of the 2,401 returns Branson has prepared since Jan. 1, 2009, sought a refund, and 97 percent of the 287 returns the IRS audited to date understated the customer’s tax liability by an average of $5,006. Given the number of returns Branson has prepared since 2009, the harm to the U.S. Treasury caused by her practices could be in the millions of dollars.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2014. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Related Materials:
United States v. Kavivah Branson, etc.
Order Entering Permanent InjunctionBrooklyn Man Convicted of Conspiracy to Commit Honor Killings in PakistanRead the Press Release
Earlier today, a federal jury returned verdicts of guilty against Mohammad Ajmal Choudhry of conspiring to commit murder in a foreign country, transmitting threats via interstate communications, and immigration fraud. The verdict followed a nine-day trial at the federal courthouse in Brooklyn, New York. The verdict was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York, and David Schnorbus, Special Agent-in-Charge, New York Field Office, U.S. Department of State’s Diplomatic Security Service.
The evidence at trial established that the defendant’s daughter, Amina Ajmal, was held against her will in Pakistan for more than three years by relatives at her father’s direction. During that time, Ajmal, a U.S. citizen, was forced into an arranged marriage with a Pakistani national. Ajmal eventually escaped Pakistan and returned to the United States with the assistance of a Pakistani man and U.S. State Department officials. During subsequent recorded telephone calls between Ajmal and the defendant, the defendant threatened to orchestrate the murder of the man who helped Ajmal flee if Ajmal, whose whereabouts remained unknown to the defendant, did not return immediately to the family home in Brooklyn. On February 25, 2013, after Ajmal refused to return home, the father and sister of the man who helped Ajmal flee were shot and killed in Pakistan. According to eyewitnesses, the defendant’s brother and other relatives were observed standing over the victims, holding guns, and desecrating the bodies.
“Choudhry placed himself and his honor above the lives of anyone who dared to thwart his plans. From the front seat of his yellow taxicab as he drove the streets of New York City, the defendant planned, directed, and executed the murders of family members of the man who offended his honor by helping his daughter leave Pakistan,” stated United States Attorney Lynch. “A clash of cultures can never be resolved with murder.” Ms. Lynch expressed her grateful appreciation to U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and the U.S. State Department’s Diplomatic Security Service, which worked closely together to investigate the case.
At sentencing, the defendant faces up to life imprisonment.
The government’s case is being prosecuted by Assistant United States Attorneys Amanda Hector, Richard M. Tucker, and Margaret E. Gandy.
The Defendant:
MOHAMMAD AJMAL CHOUDHRY
Age: 61
E.D.N.Y. Docket No. 13 CR 150 (WFK)
Armed Carjacker Exiled to Nine Years in PrisonRead the Press Release
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Donald Avery Moore, age 57, of Washington, D.C., today to nine years in prison followed by five years of supervised release for carjacking and using a gun during the carjacking. Judge Chasanow ordered that Moore’s Maryland sentence be served concurrent to the 42 month sentence he received in D.C. Superior Court on related charges.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Richard Marianos of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Washington Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to his plea agreement, on January 24, 2012, Moore approached a pick-up truck driven by an individual in Capitol Heights, Maryland. Moore brandished a semi-automatic pistol and demanded the keys. The victim gave Moore the keys and Moore got into the vehicle. Moore then told the victim to walk to the back of the pick-up truck or Moore would shoot him. When the victim complied, Moore drove away.
After a lookout was broadcast, Prince George’s County police officers located and pursued the pick-up truck. Moore subsequently fled on foot, and the officers ultimately arrested him, seizing the pistol from his jacket pocket.
United States Attorney Rod J. Rosenstein commended the ATF, Prince George’s County Police Department, Metropolitan Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Mara Zusman, who prosecuted the case.
Wednesday 2 July 2014
Wood Man Sentenced for Assault Resulting in Substantial Bodily Injury to an Individual Under Age 16Read the Press Release
United States Attorney Brendan V. Johnson announced that a Wood, South Dakota, man convicted of Assault Resulting in Substantial Bodily Injury to an Individual Under Age 16 was sentenced on June 30, 2014, by U.S. District Judge Roberto A. Lange.
Elias James LaPointe, age 21, was sentenced to 33 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
LaPointe was indicted for Assault Resulting in Serious Bodily Injury and Child Abuse by a federal grand jury on January 15, 2014. He pled guilty to Assault Resulting in Substantial Bodily Injury to an Individual Under Age 16 on March 31, 2014.
On October 23, 2013, LaPointe was caring for the victim at his home in Mellette County. Approximately mid-morning, LaPointe assaulted the victim, causing a subdural hematoma, an injured jaw, a damaged pancreas, a bruised scrotum, and numerous other hematomas and injuries. LaPointe did not seek medical treatment for the victim. At approximately 2:30 p.m. the victim’s mother arrived home and took the victim to the doctor. The victim was eventually taken to a Sioux Falls hospital.
This case was investigated by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
LaPointe was immediately turned over to the custody of the U.S. Marshals Service.
Westminster Man Sentenced to over 5 Years in Prison for Possession of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Joshua Foe, age 35, of Westminster, Maryland, today to 63 months in prison, followed by 25 years of supervised release, for possession of child pornography. Judge Russell ordered that upon his release from prison, Foe must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).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); and Colonel Marcus L. Brown, Superintendent of the Maryland State Police.
According to Foe’s plea agreement, on two occasions between September 11, 2012, and March 16, 2013, undercover law enforcement agents downloaded child pornography from files being shared by Foe through the use of file sharing software. A federal search warrant was subsequently executed at Foe’s home and law enforcement seized Foe’s computer and other digital media. A forensic analysis of the computer revealed approximately 277 images and 296 videos documenting the sexual abuse of children, including prepubescent minors engaged in sexually explicit conduct.
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. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Maryland State Police Internet Crimes Against Children Task Force for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.
U.S. Files Complaint and Consent Decree Against MIRA Health and Senior OfficersRead the Press Release
Mira Consent Decree
Mira-Complaint-06-05-14Two Montgomery Men Await Sentencing for $900k Tax Refund SchemeRead the Press Release
Montgomery, Alabama - Edmund Lee McCall, pled guilty today to the charges of conspiracy to commit wire fraud and aggravated identity theft, announced U.S. Attorney George Beck Jr. A co-defendant in this case, Antonio Devon Harris, pled guilty to the same charges in January 2014. Both McCall and Harris are from Montgomery, Alabama.
According to court documents, beginning in 2010 and continuing through October 2012, McCall and Harris conspired together, along with others, to illegally obtain the names, social security numbers, dates of birth, and other personal information of unsuspecting people. McCall and Harris used the victims’ personal information to create W2s with fraudulent employee and wage information and to file income tax returns on-line without the knowledge or permission of the identity theft victims.
After filing the false tax returns, McCall and Harris would have the refund money put on pre-paid credit cards that they owned. Once the funds were received, they would spend the money for their own personal use. During the time period of the conspiracy, McCall and Harris filed for more than $900,000 in fraudulent income tax refunds.
McCall and Harris each face a maximum sentence of 20 years for the conspiracy to commit wire fraud charge, and two years for aggravated identity theft. Antonio Harris is set for sentencing on August 5, 2014. A sentencing date has not yet been set for McCall.
Edmund McCall is currently serving a sentence for a prior identity theft and credit card scheme that ran from 2004 to 2009. In January 2014, McCall was tried and convicted of conspiracy to commit bank fraud and wire fraud, along with six counts of aggravated identity theft. He was sentenced to 18 years for those crimes.
This case was investigated by the United States Department of Treasury Internal Revenue Service Criminal Investigation Division, the United States Postal Inspection Service, and the United States Secret Service. The case was prosecuted by Assistant United States Attorney Denise O. Simpson.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Three New Haven Residents Charged with Distributing Crack Cocaine; One Also Faces Gun ChargeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in New Haven returned a 10-count indictment yesterday charging three New Haven men with crack cocaine distribution offenses. One defendant is also charged with illegally possessing a firearm.
The indictment alleges that between November 2013 and May 2014, PERRY FLOWERS, also known as “Mel,” 44, MILES PRICE, also known as “Molly Rock,” 25, and TONY BROWN, also known as “Boogie Down,” 35, possessed and distributed crack cocaine.
The indictment further alleges that on April 12, 2014, PRICE possessed a Smith and Wesson, model 29, .44 caliber revolver. Prior to that date, PRICE had been convicted in Connecticut state court of sale of hallucinogen/narcotics (twice), possession of narcotics (twice) and criminal weapon possession. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
FLOWERS, PRICE and BROWN are charged in multiple counts of the indictment with possession with intent to distribute, and distribution of, cocaine base (“crack”), an offense that carries a maximum term of imprisonment of 20 years. PRICE is also charged with one count of possession of a firearm by a previously convicted felon, an offense that carries a maximum term of imprisonment of 10 years.
The three defendants were arrested on June 18, 2014, and are currently detained.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorneys Peter D. Markle and Anthony E. Kaplan.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
PUBLIC AFFAIRS CONTACT:
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Tom Carson
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[email protected]Three Central West Virginia Men Convicted on Federal Drug and Firearms ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs Specialist
CLARKSBURG, WEST VIRGINIA — Three Central West Virginia men appeared in United States District Court before Magistrate Judge John S. Kaull and entered pleas of guilty.United States Attorney William J. Ihlenfeld, II, announced that:
Jason MARPLE, age 35, of Clarksburg, West Virginia, a former Harrison County Sheriff’s Department Process Server, entered pleas of guilty to one count of distribution of oxycodone within 1,000 feet of Clarksburg City Park playground and one count of knowingly possessing a firearm in furtherance of that drug trafficking crime. MARPLE, who is in custody pending sentencing, faces up to life in prison.
Chad Alton REGISTER, age 31, of Anmoore, West Virginia, entered a plea of guilty to the distribution of oxycodone.
Russell POWERS, also known as Rusty, age 49, of Clarksburg, entered a plea of guilty to possession with intent to distribute oxycodone.
REGISTER and POWERS, who are free on bond, face up to 20 years in prison.
The case was prosecuted by Assistant United States Attorney Shawn A. Morgan, and was investigated by the Greater Harrison County Drug & Violent Crime Task Force and the Three Rivers Drug Task Force.
Ten Individuals Sentenced for Federal Supervised Release ViolationsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II, announced that during the month of June ten (10) individuals were sentenced by Judge Gina M. Groh for violations of the terms and conditions of their supervised release imposed by the United States District Court.
Paul Lee Jackson, age 45, of Martinsburg, West Virginia, was sentenced to 37 months in prison for testing positive for the use of cocaine; failure to be truthful with probation officer; and, being charged and arrested in Berkeley County Magistrate Court for possession with intent to distribute a controlled substance. Jackson was originally sentenced on July 15, 2003, to 240 months in prison and five years of supervised release for conspiracy to distribute cocaine base. In October of 2009, Jackson’s sentence was reduced to 176 months in prison and again in November of 2011, Jackson’s sentence was reduced to 128 months in prison due to the crack resentencing guidelines. Jackson was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Gerald David Gibbs, age 26, of Martinsburg, was sentenced to 24 months in prison for associating with a convicted felon; failure to notify probation officer within 72 hours of police contact; testing positive for the use of cocaine; failure to be truthful with probation officer; frequenting a location where illegal substances are located; changing address without notifying probation officer 10 days in advance; and, a charge of No Operator’s. Gibbs was originally sentenced on July 30, 2010, to 60 months in prison and four years of supervised release for the distribution of cocaine base. Gibbs was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Timothy William Cook, age 29, of Martinsburg, was sentenced to 24 months in prison for failure to complete and submit monthly reports to the probation office; failure to respond to notifications of probation officer; and, failure to notify probation officer of a change in employment status. Cook was originally sentenced on January 17, 2006, to 97 months in prison and 3 years of supervised release for possession with intent to distribute heroin. Cook was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Brandy Netz, age 39, of Martinsburg, was sentenced to 18 months in prison for committing another crime of distribution of cocaine base and arranging a purchase of heroin. Netz was originally sentenced on August 5, 2008, to 18 months in prison and five years of supervised release for possession with intent to distribute cocaine base. On September 12, 2013, Netz supervised release was revoked and she was sentenced to four months in prison and 18 months of supervised release for failure to be truthful with probation officer; testing positive for the use of cocaine; failure to follow instructions of the probation officer; and, being charged with other criminal violations, i.e. failure to maintain control, failure to stop at a stop sign, destruction of property and two counts of no child restraint. Netz was remanded to the custody of the United States Marshal pending designation to a Federal institution.
William Matthew Redman, age 47, of Martinsburg, was sentenced to 12 months and 1 day in prison and 18 months of supervised release for failure to notify probation officer of change of address; being charge in Berkeley County Magistrate Court with possession of heroin; associating with a convicted felon; possession of heroin and drug paraphernalia; and, frequenting places where controlled substances were illegally sold, distributed or administered. Redman was originally sentenced on March 13, 2003, to 151 months in prison and three years of supervised release for the distribution of cocaine base. In February of 2009, Redman’s sentence was reduced to 130 months pursuant to the crack resentencing guidelines. Redman was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Ronald Allen Brown, age 36, of Martinsburg, was sentenced to 12 months and 1 day in prison for possession of drug paraphernalia; failure to respond to probation officer; and, admitted use of heroin. Brown was originally sentenced on November 15, 2004, to 108 months in prison and three years of supervised release for the distribution of heroin. Brown was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Devonnie Joseph Cooper, age 26, of Martinsburg, was sentenced to 12 months and 1 day in prison, with three months of the imprisonment term to be served on home confinement, for admitted use of oxycodone; failure to following instructions of the probation officer; and, failure to report to the probation office on six different occasions. Cooper was originally sentenced on January 29, 2008, to 60 months in prison and four years of supervised release for possession with intent to distribute cocaine base. On March 21, 2003, Cooper’s supervised release was revoked and he was sentenced to 5 months in prison and four years of supervised release for admitted use of marijuana and cocaine; testing positive for the use of marijuana; and, attempting to provide an altered/fake urine sample. Cooper was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Timothy Douglas Imperio, age 33, of Keyser, West Virginia, was sentenced to 12 months in prison for testing positive for the use of amphetamine, marijuana, suboxone and loracet (not prescribed to him); admitted use of xanax (not prescribed to him); charges of failure to display license and no seatbelt; two charges for shoplifting; failure to notify probation officer of new charges; and charges of DUI-2nd offense, no proof of insurance and no operator’s. Imperio was originally sentenced on July 13, 2009, to 30 months in prison and three years of supervised release for perjury before a grand jury. On January 7, 2013, Imperio’s supervised release was revoked and he was sentenced to six months in prison and 30 months of supervised release for failure to maintain employment; failure to notify probation officer of change in employment status; failure to file monthly report form; and, failure to be truthful with probation officer. Imperio was remanded to the custody of the United States Marshal pending designation to a Federal institution and will receive credit for time served since June 2, 2014.
Michael Hunter Norris, age 37, was sentenced to 10 months in prison and 100 months of supervised release for abuse of prescribed medication; failure to notify probation officer of move; and, leaving hospital without notify probation office of residential location. Norris was originally sentenced on July 2, 2012, to 15 months in prison and 10 years of supervised release for failure to register as a sex offender. On July 25, 2013, Norris’ supervised release was revoked and he was sentenced to 5 months in prison and 115 months of supervised release for testing positive and admitting to the use of marijuana as well as testing positive and denying the use of marijuana. Norris was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Steven Blunt, age 40, of Harpers Ferry, West Virginia, was sentenced to 6 months in prison and 42 months of supervised release for testing positive for the use of heroin; morphine, suboxone, opiates and methadone; being observed by probation officers with driving without a valid driver’s license; being untruthful with probation officer; and, failure to complete counseling as directed. Blunt was originally sentenced on December 10, 2010, to 60 months in prison and four years of supervised release for the possession with intent to distribute heroin. Blunt was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The United States was represented at the revocation hearings by Assistant U.S. Attorneys Jarod J. Douglas and Paul T. Camilletti.
The United States Probation Office carries out probation and pretrial services functions throughout the Northern District of West Virginia. With locations in Wheeling, Clarksburg, Martinsburg, and Elkins, the office works to assist the federal courts in the fair administration of justice, to protect the community, and to bring about long-term positive change in individuals under supervision. Jeff Givens is the Chief Probation Officer for the Northern District.
Ten Individuals Sentenced for Federal Supervised Release and Probation ViolationsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II, announced that during the month of June ten (10) individuals had their supervised release or probation revoked for violating terms and conditions imposed by the United States District Court.
WHEELING DIVISION REVOCATIONS (Judge Frederick P. Stamp, Jr.)
James Timothy Snyder, III, age 31, of Steubenville, Ohio, was sentenced to 24 months in prison for a new felony conviction of reckless fleeing in a vehicle, failure to submit monthly supervision reports, failure to notify probation office with change of address and failure to report an arrest to the probation office within 72 hours. Snyder was originally sentenced on May 12, 2007, to 54 months in prison and six years of supervised release for the distribution of cocaine base within 1,000 feet of a protected location. In August of 2008, Snyder’s sentence was reduced to 44 months in prison pursuant to the crack resentencing guidelines. Snyder was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Shawn Henderson, age 46, of Wheeling, West Virginia, was sentenced to 18 months in prison for the possession and use of cocaine; traveling out of the district without the permission of the probation officer; and, associating with known felons. Henderson was originally sentenced on March 1, 2010, to 43 months in prison and six years of supervised release for the distribution of cocaine within 1,000 feet of a protected location. Henderson was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Emanuel Banks, age 40, of Columbus, Ohio, was sentenced to 14 months in prison, to run consecutively to the 140-month sentence he received in April of 2014 for the May of 2013 distribution of cocaine base. Banks was originally sentenced on March 18, 1994, to 57 months in prison and six years of supervised release for the distribution of cocaine base. In March of 2008, Banks was reduced to 47 months in prison pursuant to the crack resentencing guidelines. Banks was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Ian Welshans, age 32, of Wheeling, was sentenced to 30 days in prison and 18 months of supervised release for excessive use of alcohol; failure to report for drug testing; and, failure to register as a sex offender. Welshans was originally sentenced on March 5, 2012, to 15 months in prison and three years of supervised release for attempting to transfer obscenity to a minor. Welshans self-reported to the Northern Regional Jail on June 30, 2014.
ELKINS DIVISION REVOCATIONS (Chief Judge John Preston Bailey)
Matthew Shane Burns of Norton, West Virginia, was sentenced to 12 months and 1 day in prison for possession and use of a controlled substance, associating with persons engaged in criminal activity, excessive use of alcohol and commission of another crime. Burns was originally sentenced on May 10, 2005, to 77 months in prison and three years of supervised release for felon in possession of a firearm. Burns was remanded to the custody of the United States Marshal pending designation to a Federal institution and will receive credit for time served since May 7, 2014.
Stephen Blake Landis, Jr. of Randolph County, West Virginia, was sentenced to 12 months and 1 day in prison for use of a controlled substance and alcohol. Landis was originally sentenced on May 9, 2011, to 10 months in prison and three years of supervised release for the distribution of methamphetamine. Burns was remanded to the custody of the United States Marshal pending designation to a Federal institution.
CLARKSBURG DIVISION REVOCATIONS (Judge Irene M. Keeley)
Kevin Wayne Bennett, age 41, of Clarksburg, West Virginia, was sentenced to 12 month in prison and 24 months of supervised release for unlawful possession and use of controlled substances and alcohol and a location monitoring violation. Bennett was originally sentenced on June 4, 2009, to 70 months in prison and three years of supervised release for maintaining a drug-involved premise. In October of 2011, Bennett’s sentence was reduced to 57 months in prison due to the crack resentencing guidelines. Bennett, who is free on bond, will self-report to the designated Federal institution.
Naquan Warren, age 24, of Fairmont, West Virginia, was sentenced to six months in prison and 24 months of supervised release for unlawful possession and use of a controlled substance and associating with a known felon. Warren was originally sentenced on November 2, 2012, to 10 months in prison and three years of supervised release for aiding and abetting in the distribution of heroin within 1,000 feet of a protected location. Warren was remanded to the custody of the United States Marshal pending designation to a Federal institution and will receive credit for time served since May 7, 2014.
Charles Clint Gaines, Jr., age 26, of Clarksburg, was sentenced to 6 months in prison and 30 months of supervised release for failure to report to probation officer; failure to truthfully answer all inquiries of probation officer; failure to participate in substance abuse testing, counseling and treatment; and, associating with persons engaged in criminal activity. Gaines was originally sentenced on February 10, 2010, to 60 months in prison and three years of supervised release for the distribution of cocaine base. In October of 2011, Gaines sentence was reduced to 57 months in prison pursuant to the crack resentencing guidelines. Gaines was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Joel Levine, age 48, of Morgantown, West Virginia, was sentenced to 2 months in prison and three years of supervised release for possession and consumption of alcohol; unlawful use of marijuana and failure to participate in drug and alcohol treatment as directed by the probation officer. Levine was originally sentenced on November 22, 2010, to 5 years probation for being a felon in possession of a firearm. Levine, who is free on bond, will self-report to the designated Federal institution.
The United States was represented at the revocation hearings by U.S. Attorney Ihlenfeld and Assistant U.S. Attorneys John C. Parr, Randolph J. Bernard, Shawn A. Morgan, Zelda E. Wesley and Andrew R. Cogar.
The United States Probation Office carries out probation and pretrial services functions throughout the Northern District of West Virginia. With locations in Wheeling, Clarksburg, Martinsburg, and Elkins, the office works to assist the federal courts in the fair administration of justice, to protect the community, and to bring about long-term positive change in individuals under supervision. Jeff Givens is the Chief Probation Officer for the Northern District.
Shreveport Man Pleads Guilty to Stealing from ATMRead the Press Release
SHREVEPORT, La. –A Shreveport man pleaded guilty Tuesday to stealing more than $30,000 from an ATM located on bank property causing more than $35,000 worth of damage in the process, U.S. Attorney Stephanie A. Finley announced today.
Frederick Charles Davis, 46, of Shreveport, pleaded guilty before U.S. District Judge S. Maurice Hicks Jr. to one count of bank theft. According to evidence presented at the guilty plea, Davis broke open an automated teller machine (ATM) on July 13, 2012 located at the end of a drive-through lane at a Richland State Bank in Minden, La., and stole $30,320. He used a power tool and a chain attached to the back of his truck to open the ATM, which caused $35,242 in damage.
Davis faces a maximum penalty of 10 years in prison, three years of supervised release, a $250,000 fine, forfeiture and restitution. An October 2, 2014 sentencing date was set.The FBI conducted the investigation. Assistant U.S. Attorney Allison D. Bushnell is prosecuting the case.
Seven Colombian Nationals Charged in Connection with the Murder of a DEA Agent Extradited to the United StatesRead the Press Release
Seven Colombian nationals were extradited to the United States to face charges relating to the kidnapping and murder of Drug Enforcement Administration (DEA) Special Agent James Terry Watson.
Attorney General Eric H. Holder, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente for the Eastern District of Virginia, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, DEA Administrator Michele M. Leonhart and Director Bill A. Miller of the State Department’s Diplomatic Security Service (DSS) made the announcement.
“With the extradition of these suspects, we are one step closer to ensuring that justice is served for the kidnapping and murder of an American hero,” said Attorney General Holder. “Special Agent Watson gave his life in the service of his country. We owe him, and his family, a debt of gratitude we can never fully repay. The Justice Department will never waver in our commitment to ensure that those who commit acts of violence against our best and bravest can be caught and held accountable.”
“DEA Special Agent James ‘Terry’ Watson was a brave and talented special agent who represented everything good about federal law enforcement and our DEA family,” said DEA Administrator Leonhart. “We will never forget Terry’s sacrifice on behalf of the American people during his 13 years of service, nor will DEA ever forget the outstanding work of the Colombian National Police and our other law enforcement partners. Their efforts quickly led to the arrest and extradition of those accused of committing this heinous act.”
All of the defendants were indicted by a grand jury in the Eastern District of Virginia on July 18, 2013. Gerardo Figueroa Sepulveda, 39; Omar Fabian Valdes Gualtero, 27; Edgar Javier Bello Murillo, 27; Hector Leonardo Lopez, 34; Julio Estiven Gracia Ramirez, 31; and Andrés Alvaro Oviedo-Garcia, 22, were each charged with two counts of second degree murder, one count of kidnapping and one count of conspiracy to kidnap. Oviedo-Garcia was also charged with two counts of assault. Additionally, the grand jury indicted Wilson Daniel Peralta-Bocachica, 31, also a Colombian national, for his alleged efforts to destroy evidence associated with the murder of Special Agent Watson.
The defendants arrived in the United States on July 1, 2014, and made their initial appearance in federal court in Alexandria, Virginia, today before United States Magistrate Judge Thomas Rawles Jones Jr. A detention hearing is scheduled for July 9, 2014, before United States Magistrate Judge Ivan D. Davis.
According to the indictment, Figueroa, Valdes, Bello, Lopez, Gracia and Oviedo-Garcia were part of a kidnapping and robbery conspiracy that utilized taxi cabs in Bogotá, Colombia, to lure victims into a position where they could be attacked and robbed. Once an intended victim entered a taxi cab, the driver of the taxi cab would signal other conspirators to commence the robbery and kidnapping operation.
The indictment alleges that on June 20, 2013, while he was working for the U.S. Mission in Colombia, Special Agent Watson entered a taxi cab operated by one of the defendants. Special Agent Watson was then allegedly attacked by two other defendants – one who stunned Special Agent Watson with a stun gun and another who stabbed Special Agent Watson with a knife, resulting in his death.
On July 1, 2014, the Government of Colombia extradited the defendants to the United States.
This case was investigated by the FBI, DEA and DSS, including the Office of Special Investigations and the Regional Security Office at Embassy Bogatá, in close cooperation with Colombian authorities, and with assistance from INTERPOL and the Justice Department’s Office of International Affairs. The case is being prosecuted by Special Counsel Stacy Luck of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Michael P. Ben’Ary from the U.S. Attorney’s Office for the Eastern District of Virginia.
The Department of Justice gratefully acknowledges the Colombian Attorney General’s Office, Colombian National Police, Colombian Directorate of Criminal Investigation and Interpol (DIJIN), DIJIN Special Investigative Unit, Bogotá Metropolitan Police, Bogotá Police Intelligence Body (CIPOL) Unit and Colombian Technical Investigation Team for their extraordinary efforts, support and professionalism in responding to this incident.
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.Seven Colombian Nationals Charged in Connection with the Murder of A DEA Agent Extradited to the United StatesRead the Press Release
ALEXANDRIA, Va. – Seven Colombian nationals were extradited to the United States to face charges relating to the kidnapping and murder of Drug Enforcement Administration (DEA) Special Agent James Terry Watson.
Attorney General Eric H. Holder, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente for the Eastern District of Virginia, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, DEA Administrator Michele M. Leonhart and Director Bill A. Miller of the State Department’s Diplomatic Security Service (DSS) made the announcement.
“With the extradition of these suspects, we are one step closer to ensuring that justice is served for the kidnapping and murder of an American hero,” said Attorney General Holder. “Special Agent Watson gave his life in the service of his country. We owe him, and his family, a debt of gratitude we can never fully repay. The Justice Department will never waver in our commitment to ensure that those who commit acts of violence against our best and bravest can be caught and held accountable.”
“DEA Special Agent James ‘Terry’ Watson was a brave and talented special agent who represented everything good about federal law enforcement and our DEA family,” said DEA Administrator Leonhart. “We will never forget Terry’s sacrifice on behalf of the American people during his 13 years of service, nor will DEA ever forget the outstanding work of the Colombian National Police and our other law enforcement partners. Their efforts quickly led to the arrest and extradition of those accused of committing this heinous act.”
All of the defendants were indicted by a grand jury in the Eastern District of Virginia on July 18, 2013. Gerardo Figueroa Sepulveda, 39; Omar Fabian Valdes Gualtero, 27; Edgar Javier Bello Murillo, 27; Hector Leonardo Lopez, 34; Julio Estiven Gracia Ramirez, 31; and Andrés Alvaro Oviedo-Garcia, 22, were each charged with two counts of second degree murder, one count of kidnapping and one count of conspiracy to kidnap. Oviedo-Garcia was also charged with two counts of assault. Additionally, the grand jury indicted Wilson Daniel Peralta-Bocachica, 31, also a Colombian national, for his alleged efforts to destroy evidence associated with the murder of Special Agent Watson.
The defendants arrived in the United States on July 1, 2014, and made their initial appearance in federal court in Alexandria, Virginia, today before United States Magistrate Judge Thomas Rawles Jones Jr. A detention hearing is scheduled for July 9, 2014, before United States Magistrate Judge Ivan D. Davis.
According to the indictment, Figueroa, Valdes, Bello, Lopez, Gracia and Oviedo-Garcia were part of a kidnapping and robbery conspiracy that utilized taxi cabs in Bogotà, Colombia, to lure victims into a position where they could be attacked and robbed. Once an intended victim entered a taxi cab, the driver of the taxi cab would signal other conspirators to commence the robbery and kidnapping operation.
The indictment alleges that on June 20, 2013, while he was working for the U.S. Mission in Colombia, Special Agent Watson entered a taxi cab operated by one of the defendants. Special Agent Watson was then allegedly attacked by two other defendants – one who stunned Special Agent Watson with a stun gun and another who stabbed Special Agent Watson with a knife, resulting in his death.
On July 1, 2014, the Government of Colombia extradited the defendants to the United States.
This case was investigated by the FBI, DEA and DSS, including the Office of Special Investigations and the Regional Security Office at Embassy Bogatà, in close cooperation with Colombian authorities, and with assistance from INTERPOL and the Justice Department’s Office of International Affairs. The case is being prosecuted by Special Counsel Stacy Luck of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Michael P. Ben’Ary from the U.S. Attorney’s Office for the Eastern District of Virginia.
The Department of Justice gratefully acknowledges the Colombian Attorney General’s Office, Colombian National Police, Colombian Directorate of Criminal Investigation and Interpol (DIJIN), DIJIN Special Investigative Unit, Bogotà Metropolitan Police, Bogotà Police Intelligence Body (CIPOL) Unit and Colombian Technical Investigation Team for their extraordinary efforts, support and professionalism in responding to this incident.
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.Tweet
Seal Beach Man Indicted in Foreclosure Rescue SchemeRead the Press Release
LOS ANGELES – A Corona woman, who is already charged with a $15 million bank fraud and bankruptcy f
Defendant’s Illegal Conduct Allegedly Continued after $5 Million Sanction by Judge
Los Angeles, California – A Seal Beach man is scheduled to be arraigned this afternoon after being indicted on federal fraud charges related to a mortgage rescue scheme in which he made false promises to the distressed homeowner, filed fraudulent bankruptcies to delay foreclosure and rented the property to third parties as the foreclosure proceedings were delayed.
Terrill “Terry” Meisinger, 74, is scheduled to be arraigned and enter a plea this afternoon to two counts of wire fraud and one count of aggravated identity theft. These charges are contained in a grand jury indictment that was returned on June 25.
Meisinger has been in federal custody since his arrest on a criminal complaint on June 11, 2014.
The indictment alleges that Meisinger defrauded the distressed homeowner by inducing him to sign a quitclaim in exchange for promises that included negotiating a short-sale agreement with his lender that would free the homeowner from his mortgage on a property on Monte Alban Drive in North Las Vegas, Nevada. But, instead, Meisinger caused a deed of trust to be recorded on the property, which was followed by a fraudulent bankruptcy on behalf of the person who supposedly now held an interest in the home. Meanwhile, Meisinger rented out the home to another person while foreclosure proceedings were stayed as a result of the fraudulent bankruptcy.
“Meisinger repeated the process of causing the recording of deeds of trusts in the names of various lenders whose identities he controlled and causing the filing of bankruptcies on behalf of those lenders to delay the foreclosure proceedings, while collecting rents on the Monte Alban Property,” according to the indictment.
While the indictment discussed only one property, the criminal complaint alleges that Meisinger engaged in more widespread conduct: “Based on the evidence, Meisinger has collected approximately more than $1.5 million in illicit rent payments on more than 100 properties and never made any mortgage payments on those properties. Further, he caused more than 300 bogus bankruptcy petitions to be filed in the names of numerous individuals who had no knowledge their identity was being used.”
The wire fraud charges in the indictment related to conduct that took place after a federal judge in 2012 ordered Meisinger to pay $5 million in civil penalties in connection with allegations of a massive fraud targeting homeowners, renters and lenders. In addition to ordering him to pay the fine, United States District Judge Virginia A. Phillips also prohibited Meisinger from participating in the home finance or real estate industries for 10 years. Meisinger was also barred from filing bankruptcy petitions (see: http://www.justice.gov/archive/usao/cac/Pressroom/2012/104.html). The criminal conduct alleged in the indictment is nearly identical to the conduct alleged in the government civil lawsuit.
Special Agent in Charge James Todak of the United States Department of Housing and Urban Development (HUD), Office of Inspector General stated that, “the arrest of Terry Meisinger sends an important message to real estate professionals that seek to rob vulnerable home owners of their money and homes through loan modification and foreclosure rescue scams. We recommend that home owners seeking mortgage assistance should first contact HUD-approved counseling agencies to better identify scams and avoid future cases of suspected fraud.”
The wire fraud charges alleged in the indictment each carry a statutory maximum penalty of 20 years in federal prison. The charge of aggravated identity theft carries a mandatory sentence of two years in prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
The criminal case against Meisinger is the result of an investigation by the United States Department of Housing and Urban Development, Office of the Inspector General (HUD-OIG).
Release No. 14-083
Sacramento Woman Pleads Guilty to Aggravated Identity Theft and A Scheme to DefraudRead the Press Release
SACRAMENTO, Calif. — Jennifer Ann Lynch, 37, of Sacramento, pleaded guilty Tuesday to two counts of mail fraud and a single count of aggravated identity theft, United States Attorney Benjamin B. Wagner announced.
According to court documents, on May 3, 2013, Lynch was arrested in Lincoln for unrelated California state offenses. She was later released from state custody on a $175,000 bond she obtained through fraud. Specifically, Lynch defrauded a bail bond company by falsely representing her assets, ability to pay, and her income in order to secure the bond. She also obtained and altered stolen money orders to pay for the bond.
On May 17, 2013, while Lynch was out of custody, she took checks that were stolen from the mail and opened a Safe Credit Union account using the identity of the mail theft victim including her name, date of birth, driver's license number, employer identification and security badge, social security number, and signature. Between May 17, 2013, and July 31, 2013, Lynch deposited additional stolen and altered checks. After she deposited stolen checks, she withdrew cash.
San Francisco Division Inspector in Charge Rafael Nunez of the United States Postal Inspection Service stated: “We are working closely with the U.S. Attorney's Office and our partners in law enforcement to ensure the U.S. Mail system is not used to facilitate criminal activity.”
This case is the product of an investigation by the United States Postal Inspection Service and the Placer County District Attorney's Office with assistance from the Roseville Police Department and the Sacramento Valley Hi-Tech Crimes Task Force. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.
Lynch is scheduled to be sentenced on September 16, 2014, by U.S. District Judge Lawrence K. Karlton. She faces up to 20 years in prison for each count of mail fraud and a mandatory minimum sentence of two years in prison for aggravated identity theft. 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.
Round Rock Man Pleads Guilty to Attempting to Provide Material Support to TerroristsRead the Press Release
In Austin this morning, 23-year-old Rahatul Ashikim Khan (a.k.a. “Rahat Khan,” “Authentic Tauheed 19,” and “AT19”) pleaded guilty to attempting to provide material support and resources to terrorists, announced Robert Pitman, United States Attorney for the Western District of Texas, Christopher Combs, Federal Bureau of Investigation Special Agent in Charge of the San Antonio Division, and John Carlin, Assistant Attorney General for National Security. He faces up to 15 years in federal prison for the offense.
Appearing before United States Magistrate Judge Mark Lane, Khan admitted that from March 2011 to January 2012, he conspired to provide material support to terrorists.
During the plea hearing Khan acknowledged that he intended to provide to a co-conspirator a confidential
human source (CHS), whom Khan believed to be a person interested in participating in violent jihad overseas. The co-conspirator told Khan about a contact who could facilitate travel to Somalia, where persons would then engage in violent jihad. The co-conspirator asked Khan to identify individuals who would be good candidates to travel to Somalia to participate in violent jihad. Khan identified the CHS as a worthy candidate for violent jihad in Somalia and communicated this information and the CHS’s identity to the co-conspirator. The coconspirator subsequently contacted the CHS and further assessed the CHS’s suitability to fight overseas. The co-conspirator informed the CHS that he trusted the CHS because of Khan’s recommendation. After determining that the CHS was a good candidate for fighting in Somalia, the co-conspirator passed the CHS to a contact in Africa who then communicated with the CHS about the logistics of traveling to Africa in support of violent jihad.
“Rahatul Khan’s admissions during this morning’s guilty plea should serve as a sobering reminder that we need to remain vigilant in our efforts to detect and root out terrorism, even in our own back yard,” stated United States Attorney Robert Pitman. “Great credit is due to the dedicated law enforcement professionals whose tireless efforts contributed to the apprehension of Khan and Michael Wolfe, who pled last week in a separate case to similar charges. National security is, and will remain, the first priority of this office and our law enforcement partners.”
Khan remains in federal custody pending sentencing before United States District Judge Sam Sparks in Austin. No sentencing date has been scheduled.
This case resulted from a Central Texas Joint Terrorism Task Force investigation conducted by the Federal Bureau of Investigation together with the Internal Revenue Service-Criminal Investigations, United States Citizenship and Immigration Services, United States Army Intelligence, Austin Police Department, Round Rock Police Department, Killeen Police Department, University of Texas Police Department, Travis County Sheriff’s Office, Texas Department of Public Safety, Office of the Texas Attorney General and the Texas Alcoholic Beverage Commission.
Assistant United States Attorneys Gregg N. Sofer and Michael Galdo, together with Department of Justice
National Security Division trial attorneys Josh Parecki and Michael Dittoe, are prosecuting this case on behalf of the government.An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Rosebud Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on June 30, 2014, by U.S. District Judge Roberto A. Lange.
Phillip Little Hoop, age 32, was sentenced to 10 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Little Hoop was indicted for Failure to Register as a Sex Offender by a federal grand jury on January 15, 2014. He pled guilty to the charge on April 1, 2014.
The conviction relates to a period of time between September 1, 2013, and January 24, 2014, when Little Hoop, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under federal law, failed to update his registration.
This case was investigated by U.S. Marshals Service and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers prosecuted the case.
Little Hoop was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Misprision of A FelonyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of Misprision of a Felony was sentenced on June 30, 2014, by U.S. District Judge Roberto A. Lange.
Albert Kelly, II, age 51, was sentenced to 5 months of home confinement, 7 months of supervised release, a $500 fine, and a $100 special assessment to the Federal Crime Victims Fund.
Kelly was indicted for First Degree Burglary and Assault with a Dangerous Weapon by a federal grand jury on July 17, 2013. He pled guilty to Misprision of a Felony on April 1, 2014.
On May 10, 2013, Kelly and his co-defendant went to the victim’s home in Lower Swift Bear on the Rosebud reservation. Kelly’s co-defendant entered the victim’s home and assaulted the victim while Kelly remained outside. After the assault, Kelly concealed the assault from tribal and federal law enforcement officers.
This case was investigated by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers prosecuted the case.
Kelly was released to home confinement.
Philadelphia Man Allegedly Accessed A University Employee's Bank Account to Pay His Own TuitionRead the Press Release
Jorry Senestant, 22, of Philadelphia, was charged today by Information1 with unauthorized access to a computer in furtherance of committing wire fraud, announced United States Attorney Zane David Memeger.
The Information alleges that on approximately November 23, 2013, Senestant made an unauthorized access into the computer file with the employee account of an employee of a local university. In doing so, Senestant took the employee’s bank account number and bank routing number. Senestant then later used that stolen bank information to cause an electronic transfer of $13,000 from the employee’s bank account to Senestant’s account at the university for the purpose of paying Senestant’s tuition at the university for the next term. This all occurred without the knowledge or permission of the university or the university employee.
If convicted the defendant faces a maximum possible sentence of five years in prison, a $250,000 fine, up to three years of supervised release, restitution, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation, and the university cooperated in the investigation. This case is being prosecuted by Assistant United States Attorney Albert S. Glenn.Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Pen Yan Man Pleads Guilty to Attempting to Obtain Money from Bank by ExtortionRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Jonathan A. Karcher, 21, of Penn Yan, N.Y., pleaded guilty to attempting to extort money from the Lyons National Bank in Penn Yan before U.S. District Judge David G. Larimer. The charge carries a maximum penalty of 20 years in prison and a fine of $250,000.
Assistant U.S. Attorney Everardo A. Rodriguez, who is handling the case, stated that on June 5, 2013, an individual called the manager of Lyons National Bank and demanded that the manager take $15,000 in cash and leave it by a dumpster behind the Rite Aid store across the street from the bank. During that conversation, the individual threatened the bank manager by informing her that he had information about the manager’s residence and children. The same date, an individual drove to the area of Lyons National Bank and parked in the Rite Aid parking lot across the street. An individual later walked by the dumpster behind the store to determine if the $15,000 had been left there as he had directed the branch manager to do.
Subsequent investigation by the FBI and Penn Yan Police Department determined the individual was Jonathan Karcher. Investigators tracked the defendant down through the analysis of records tied to the cellular telephone used in the call to the bank.
Sentencing is scheduled for September 23, 2014 at 11:00 a.m. before Judge Larimer.
The plea is the culmination of a joint investigation on the part of the Penn Yan Police Department, under the direction of Chief Mark Hulse, and the Federal Bureau of Investigation.Owner of Former Danville Business Charged with Defrauding U.S. Energy GrantRead the Press Release
Springfield, Ill. – A federal grand jury today returned an indictment charging Joseph Samuel Kozicki, owner of AA Solar, Inc., in Danville, Ill., with grant fraud. Kozicki, 78, of Choctaw, Okla., will be issued a summons to appear in federal court in Urbana for arraignment on a date to be determined by the U.S. Clerk of the Court.
According to the indictment, Kozicki, chief executive officer of AA Solar, Inc., in Danville, applied for and received a U.S. Department of Energy grant in March 2010, in the amount of $1,776,268. The grant program was funded by the American Recovery and Reinvestment Act of 2009, and was administered in Illinois by the Department of Commerce and Economic Opportunity (DCEO.)
AA Solar applied for the grant funds, according to the indictment, to purchase and install capital equipment for a manufacturing facility at 1303 East Voorhees, in Danville, to make solar tracking systems for ground-based, roof-mounted, and mobile and street light applications. The grant also required a cash match of $1,985,000 from AA Solar.
The indictment alleges that AA Solar submitted false documentation to DCEO; used some of the grant money for other purposes, including for Kozicki’s personal benefit; and attempted to avoid detection of his scheme by law enforcement authorities. Further, Kozicki failed to provide the required cash match. Despite more than $1.5 million in grant money provided to AA Solar, the indictment alleges AA Solar failed to establish a production line to produce solar tracking systems and sold very few solar tracking systems. As a result of the alleged scheme, Kozicki fraudulently attempted to obtain more than $640,000 from the grant and did obtain more than $380,000 from the grant.
As part of the alleged scheme, certain invoices submitted to DCEO were valid; however, when AA Solar received the grant money, it failed to pay the vendors. At other times, the same invoice was submitted to DCEO on multiple occasions. Kozicki also allegedly obtained vendor quotes without incurring the actual expense, but fraudulently represented to DCEO that AA Solar had incurred the expense. Further, Kozicki allegedly caused the creation of false invoices he submitted to DCEO. For example, a $50,000 loan for AA Solar from TSURT, an investment company in the Chicago area, was represented to DCEO as approximately $30,000 of engineering consulting by TSURT for AA Solar.TSURT is not an engineering or consulting firm and did not provide consulting service to AA Solar.
The investigation was conducted by the U.S. Department of Energy Office of Inspector General and the Federal Bureau of Investigation, in cooperation with the Illinois Department of Commerce and Economic Opportunity. The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller.
If convicted, the offense of major fraud against the United States carries a maximum statutory penalty of 10 years in prison and fines of up to $1,000,000.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
News ReleaseRead the Press Release
Joseph Villante, age 47, of Philadelphia, Pennsylvania, was charged today by information with bank bribery, announced United States Attorney Zane David Memeger. The information charges that from approximately January through June 2006, Villante, a vice president and relationship manager at Republic First Bank, solicited approximately $110,000 from a bank customer as a reward for assisting the customer in obtaining two loans from the bank.
UNITED STATES ATTORNEY'S OFFICE
If convicted the defendant faces a maximum possible sentence of 30 years in prison, a fine of $1,000,000, five years of supervised release, and a $100 special assessment. The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Judy G. Smith.
EASTERN DISTRICT, PENNSYLVANIA
615 Chestnut Street
Suite 1250,
Philadelphia, PA 19106Contact: PATTY HARTMAN
Media Contact: 215-861-8525
Click here to view the indictment
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.COPIES OF NEWS MEMOS AND RELATED DOCUMENTS CAN ALSO BE FOUND AT http://www.justice.gov/usao/pae
Mentor Business Owner Indicted for Defrauding Investors Out of More Than $1 MillionRead the Press Release
A 17-count indictment was filed charging a Mentor man who owned and operated several granite businesses with defrauding investors out of more than $1 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge of the Internal Revenue Service’s Cincinnati Field Office.
Carmen Occhipinti, 66, was arrested today. He was indicted on four counts of wire fraud, seven counts of bank fraud, one count of witness tampering, three counts of tax evasion and two counts of money laundering.
“This defendant purported to sell granite, but he really built a financial house of cards by stealing more than $1 million from others,” Dettelbach said. "His victims were real people, some of whom were forced into bankruptcy. We're committed to pursuing justice on their behalf."
“The IRS enforces the nation’s tax laws, but also takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others,” Enstrom said. “Individuals who create elaborate schemes that have no purpose other than to deceive friends, church parishioners, business associates and defraud the IRS run the very high risk of prosecution.”
Occhipinti maintained offices in Mentor and Woodmere. He operated several companies, including Marble Tiles of Italy, Marble and Tile Company of Italy, Brunello Marble & Granite, Carrara Bricks & Blocks Company, Granite and Tile Imports, Bella Cucina Granite and Portofino Marble Tile, according to the indictment.
From 2006 through April 2014, Occhipinti defrauded investors by inducing them to invest in his granite businesses through false and fraudulent misrepresentations and omissions of material facts about the nature and dispositions of the investments. Occhipinti misled investors to believe that their funds would be used to purchase materials for jobs, when, in fact, he used the investments to enrich himself, to pay off certain earlier investors at his discretion and to pay his personal expenses such as those incurred and Peak and Peak Resort, Mountaineer Casino and Lee Jewelers, according to the indictment.
During the course of the scheme, Occhipinti misused investor money, while continuing to solicit new investors and to lead the investors to believe a return on their investments was forthcoming. Although some investors received a fractional return of their investments, the defrauded investors incurred a combined out-of-pocket loss of more than $1 million, according to the indictment.
Because of Occhipinti’s fraudulent scheme, several investors were required to declare bankruptcy, according to the indictment.
Occhipinti used religious organizations, business relationships, social organizations and other means to establish trust and find prospective investors. He claimed his companies imported materials from Italy, Brazil and Canada when in truth his companies did not import materials, according to the indictment.
The indictment was presented by AUSA Christos N. Georgalis after an investigation by agents of the Internal Revenue Service – Criminal Investigations and inspectors with the United States Postal Service.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to the case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Mastermind of Cuban Smuggling Organization Sentenced to 20 Years in PrisonRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Rear Admiral John H. Korn, Commander, 7th Coast Guard District (USCG), announce that Antonio Comin, 56, of Miami-Dade County, was sentenced to 20 years in prison by U.S. District Judge Jose E. Martinez for one count of conspiracy, 50 counts of encouraging and inducing aliens to enter the United States, 47 counts of alien smuggling for private financial gain, and one count of bringing an aggravated felon into the United States.
The evidence at trial revealed that Comin was the mastermind of an extensive organization that conspired to smuggle Cuban nationals into the United States for profit. In January 2012, the organization successfully landed 29 Cuban nationals on Big Munson Island in the Florida Keys following a high speed chase with the United States Coast Guard, and a conscious decision by the smugglers to run their vessel aground instead of being captured at sea. Of the 29 Cuban nationals landed that day, one, Rogelio Martin-Hernandez, had been previously deported back to Cuba after serving 264 months for cocaine trafficking. In September 2012, another smuggling venture was attempted; however, the vessel used ran out of gas near Cay Sal Bank, Bahamas. An attempt by Comin and his organization to save that trip was thwarted when a second vessel, carrying additional gas, broke down less than two miles from the smuggling vessel. The occupants of both vessels, including four co-defendants of Comin and 21 Cuban nationals, were rescued by the United States Coast Guard Cutter Oak.
Seven co-defendants in the instant case, all from Miami-Dade County, have thus far been sentenced for their participation in these events:
Daniel Rochela, 42, was sentenced to 100 months in prison;
Arial Arias, 43, and Oylver Aguilar, 40, were sentenced to 60 months in prison;
Severo Tapanes, 42, was sentenced to 40 months in prison;
Rogelio Martin-Hernandez, 73, and Alexander Aznay-Gonzalez, 23, were sentenced to 24 months in prison;
Oreste Chavez Torres, 23, was sentenced to 18 months in prison.
An eighth co-defendant, Jose Valdes Diaz, 37, will be sentenced on July 17th in Miami.
Mr. Ferrer commended the investigative efforts of ICE-HSI and the USCG. This case was prosecuted by Special Assistant U.S. Attorney Kelly Blackburn and Assistant U.S. Attorney Jaime Raich.
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.
Mason Man Sentenced to 120 MonthsRead the Press Release
Memphis, TN – Fred Masters, Jr., age 48, of Mason, Tenn., was sentenced to 120 months in federal prison following his guilty plea to one count of possessing equipment, chemicals, products, and materials that may be used to manufacture methamphetamine, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.
According to the facts alleged in the indictment and revealed during the sentencing hearing, on March 3, 2012, Tipton County Sheriff’s Office Deputies and a canine officer went to Masters’s home to execute a search warrant. When the officers arrived, Masters released his pit bull to attack the officers as Masters fled into the woods. The officers searched Masters’s home and found several chemical components consistent with the manufacture of methamphetamine. Officers also found methamphetamine on a table in the bedroom next to Masters’s Tennessee ID. Masters was apprehended a week later by law enforcement officials.
In addition to the prison sentence, United States District Judge Jon P. McCalla ordered Masters to serve three years of supervised release. There is no parole in the federal prison system.
This case was investigated by the Tipton County Sheriff’s Office and the 25th District Attorney General’s Office. Special Assistant U.S. Attorney Samuel R. Stringfellow represented the government.