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Tuesday 1 July 2014
Cleveland Man Indicted for Robbing Streetsboro BankRead the Press Release
A grand jury returned an indictment charging Ronnell A. Allen, of Cleveland, age 32, with one count of bank robbery, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Allen, along with his accomplice, Eddie Fletcher, robbed the First Merit Bank of Streetsboro, Ohio, on January 10, 2013. It further alleges that the two men used force, violence, and intimidation to steal approximately $2,083.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this 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.
The case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump following an investigation by the Federal Bureau of Investigation and the Streetsboro Police Department.
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.
Charlotte Man Sentenced to 235 Months in Prison for Series of Bank Robberies in CharlotteRead the Press Release
CHARLOTTE, N.C. – Anthony Watson, 55, of Charlotte was sentenced today to serve 235 months in prison on bank robbery and related charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. also sentenced Watson to three years of supervised release and ordered him to pay $54,314 as restitution to the victim banks, Sun Trust and BB&T.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department (CMPD) join U.S. Attorney Tompkins in making today’s announcement.
Court documents show that over the course of a three-month period in the summer of 2012, Watson committed four bank robberies stealing a total of $54,314 in cash. According to court documents and today’s sentencing hearing, on June 11, 2012, Watson entered a Sun Trust Bank branch located on Galleria Boulevard in Charlotte, approached a bank teller and asked for change to a $20 bill. Watson then handed the teller a small duffel bag and told the teller that he wanted “all of the money.” Court documents indicate that the teller complied and Watson fled the scene with more than $26,700 in cash. On July 20, 2012, Watson returned to the same Sun Trust branch and robbed the bank again, this time fleeing with more than $16,300 in cash, according to court records. Continuing his bank robbery spree, on July 30, 2012, Watson entered a BB&T branch on West Arbors Drive in Charlotte and, using the same method, demanded money from the bank teller. Filed documents show that the teller complied and Watson fled the bank with approximately $3,900 in cash. Then on August 3, 2012, Watson entered a BB&T branch located on Sardis Road in Charlotte, approached a bank teller and demanded “everything.” Watson also showed the teller the handle of a sawed-off .22 caliber rifle. According to filed documents, the teller complied and Watson left on foot with more than $7,300 in cash. Law enforcement arrested Watson three days later and seized, among other things, the .22 caliber sawed-off rifle Watson used in the bank robbery.
.In handing down the sentence, Judge Cogburn noted “that while still serving a sentence of probation related to other prior bank robberies, Watson committed a series of new bank robberies that put people in danger.” Judge Cogburn emphasized that Watson’s “continuing recidivism” and the need to protect the community from further crimes of the defendant were important factors in determining Watson’s sentence.
Watson pleaded guilty in April 2013 to four counts of bank robbery and one count of possession of a firearm by a convicted felon. Watson has been in federal custody in the Western District of North Carolina since his arrest. Upon designation of a federal facility they will be transferred into custody of the Federal Bureau of Prisons. Federal sentences are served without the possibility of parole.
The investigation was handled by the FBI’s Safe Streets Task Force and CMPD. The prosecution for the government was handled by Assistant U.S. Attorney J. George Guise of the U.S. Attorney’s Office in Charlotte.
Cambria County Man Sentenced for Conspiring to Distribute and Possess MarijuanaRead the Press Release
JOHNSTOWN, Pa. - A resident of Patton, Pa., has been sentenced in federal court to ten months in prison and four years supervised release on his conviction of conspiracy to distribute and possess marijuana, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Christopher J. Jolly, 40.
According to information presented to the court, from March 2009 to May, 9, 20ll, Jolly conspired with George M. Lowmaster and others to distribute and possess with the intent to distribute 100 kilograms or more of marijuana.
Assistant United States Attorney John J. Valkovci, Jr. prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the joint task force, headed by the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, for the investigation leading to the successful prosecution of Jolly. Other agencies participating on the task force include the Internal Revenue Service-Criminal Investigation, Pennsylvania State Police, Pennsylvania Attorney General's Office, Cambria County District Attorney's Office, Carrolltown Police Department, Patton Police Department, Ebensburg Police Department, Portage Police Department and Paint Township Police Department.
Brighton Resident Pleads Guilty to Child Enticement ChargeRead the Press Release
BOSTON - A Brighton man pleaded guilty late yesterday in federal court to a charge of coercion and enticement of a minor.
Zachary Stoloff, 29, admitted to meeting a 14-year-old victim, on the Internet, whom he persuaded to meet for the purpose of having sex. Stoloff traveled to the minor victim’s town in Massachusetts, and drove her to his Brighton residence where he engaged in sexual intercourse with her.
The statute provides a maximum sentence of life imprisonment with a 10-year-mandatory minimum sentence, a $250,000 fine, and supervised release for five years up to life. Should the Court accept the parties’ plea agreement, the following sentence will be imposed: incarceration for 120 months; a fine in the amount to be determined by the Court; five years of supervised release; restitution as ordered by the Court; forfeiture; $100 special assessment; and an order that the defendant have no contact directly or indirectly with the minor victim during the period of the defendant’s incarceration and supervised release. With this conviction, Stoloff will also be required to register as a sex offender.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the United States Postal Inspection Services, Boston Division; and Colonel Timothy Alben, Superintendent of the Massachusetts State Police, made the announcement today.
The case was investigated by the United States Postal Inspection Services, as well as the Massachusetts State Police. The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz's Major Crimes Unit.
Boone County Man Sentenced to 35 Years for Producing Child Pornography VideosRead the Press Release
COVINGTON, KY - A Boone County man, who previously admitted that he created multiple videos of minors engaged in sexually explicit conduct, was sentenced today to 35 years in prison.
U.S. District Judge David L. Bunning sentenced Michael Schweitzer, 47, for producing and possessing child pornography. Under federal law, Schweitzer will have to serve at least 85 percent of his prison sentence.
According to court documents, in November 2012, Schweitzer provided a drug to a minor and then recorded himself sexually assaulting the minor, while the minor was under the influence.
During the investigation, authorities seized Schweitzer’s cell phone and discovered more videos that Schweitzer had recorded, which also involved minors engaged in sexually explicit conduct.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Gary J. Hartwig, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI),and Michael Helmig, Boone County Sheriff, jointly made the announcement.
The investigation was conducted by the Boone County Sheriff’s Office and HSI. The Ft. Mitchell Branch of the U.S. Attorney’s Office prosecuted this case on behalf of the federal government.
Boise Man Pleads Guilty to Federal Drug ChargeRead the Press Release
BOISE – Jason James Martin, 32, of Boise, Idaho, pleaded guilty today in United States District Court to conspiring to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced.
Martin admitted that in February 2014, he traveled with co-defendant Martin Adam Hernandez to California in order to obtain methamphetamine. On February 21, 2014, law enforcement agents stopped the vehicle as Martin and Hernandez returned from California with the methamphetamine. During a search of the vehicle, agents located approximately two pounds of methamphetamine. Agents recovered evidence showing that Martin and Hernandez obtained the methamphetamine from California with the intent to distribute the methamphetamine in Idaho.
Co-defendant Martin Hernandez entered a guilty plea to the same charge on June 26, 2014. Both Martin and Hernandez are scheduled to be sentenced on September 17, 2014, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise. Both Martin and Hernandez face up to 20 years in prison, a maximum fine of $1 million, and at least three years of supervised release.
The case was investigated by the Drug Enforcement Administration and the Ada County Sheriff’s Office. The case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Baltimore Business Owner Sentenced to over 4 Years in Prison for FraudRead the Press Release
Directed Others to Steal Merchandise from Retail Stores and Exchange the Stolen Items for Gift Cards
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced John Tadros, age 45, of Baltimore, today to 58 months in prison followed by three years of supervised release for wire fraud conspiracy and money laundering. Judge Russell also entered an order requiring Tadros to pay restitution of $400,000.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
Tadros owned Busy Bees Convenience Mart located at 335 South Monroe Street, and J&J’s Bar and Liquor located at 1801 Ramsay Street, both in Baltimore. According to his plea agreement, from January 2009 to February 2013, Tadros directed Melissa Perry, Deanna Lynch, Mohamed Al-Omeri, Mark Brunelle, Steven Riley and others, known as boosters, to steal merchandise from large retail stores throughout Baltimore, Anne Arundel, Prince George’s, Howard and Harford Counties in Maryland, as well as Virginia, Pennsylvania and Delaware. The boosters then returned the stolen items in exchange for store gift cards. They used modified Maryland driver’s licenses that contained the personal identifier information of actual persons, without those persons’ knowledge, when returning the stolen items without a receipt.
Tadros bought the fraudulently obtained gift cards from the boosters for 50% of the card’s value. Tadros told the boosters to target specific stores at specific locations, and advised them of the best days to steal merchandise and the manner by which they modified their Maryland driver’s licenses. Tadros also collected the welfare benefit debit cards of the boosters which he held as collateral if he deemed that the boosters owed him money, and returned the benefit cards to the boosters for 50% of the card’s value. Tadros used the gift cards to purchase personal home goods, and supplies for his businesses and rental properties.
On February 27, 2013, the U.S. Secret Service executed a search warrant and seized 32 fraudulently obtained gift cards from his home. Agents also seized 329 retail store receipts from Busy Bee, for purchases made with fraudulently obtained gift cards.
The actual loss to retailers in Maryland caused by the scheme is at least $401,326.12.
Melissa Perry, age 34; Deanna Lynch, age 44; Mohamed Al-Omeri, age 39; Steven Riley, age 50; and Mark Brunelle, age 47, previously pleaded guilty to their participation in the scheme. Brunelle was sentenced to 51 months in prison and ordered to pay over $210,000 in restitution. Perry and Lynch were sentenced to 30 months and 18 months in prison, respectively, and were ordered to pay restitution of $401,326.12. Al-Omeri was sentence to one year of probation and ordered to pay restitution of $35,000. Steven Riley is scheduled to be sentenced on August 15, 2014.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service - Baltimore Field Office for its work in the investigation, and commended the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office for its assistance. Mr. Rosenstein thanked Assistant United States Attorney Mark W. Crooks, who prosecuted the case.
Armed Career Criminal Enhancement - Snow Hill Man Sentenced for Possession of Firearm by A FelonRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court today Senior United States District Judge James C. Fox sentenced EZEKIEL DONJA GARDNER, 33,of Snow Hill, North Carolina, to 262 months in prison followed by 5 years of supervised released for possession of firearm by a convicted felon. GARDNER was convicted during a jury trial on October 15, 2013.
On January 13, 2011, the Farmville Police Department stopped a car being driven by GARDNER after receiving information from an informant that GARDNER was in possession of a firearm. Officers found a 9 millimeter pistol in the car after GARDNER admitted to having a firearm underneath the driver’s seat. GARDNER was prohibited from possessing the firearm due to his prior state felony convictions, including three counts of common law robbery, three counts of breaking and entering, assault with a deadly weapon inflicting serious injury and malicious conduct by a prisoner. GARDNER’S sentence was enhanced under the provisions of the Armed Career Criminal Act based on these convictions.
The investigation of this case was conducted by the Farmville Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greenville Police Department. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Another Houston Man Sentenced in Area Armored Car RobberiesRead the Press Release
HOUSTON – Allen Moore Jr., 47, of Dallas, has been ordered to federal prison for 20 years following his convictions for discharging his firearm during an attempted robbery of an armored car operating in and around Houston, announced United States Attorney Kenneth Magidson.
Today, U.S. District Judge Gray H. Miller handed Moore a sentence of 120 months for interference with commerce by robbery and a consecutive 120 months for discharging a firearm during the crime. Following completion of his 20-year sentence, Moore will be on supervised release for five years.
Four others also charged in the case - Walter Keitric Freeman, 25, Chad Eric Haywood, 25, and Corinthians Lachell Phillips, 29, all of Houston, and Hendrick Dwayne Lynn, 31, of Houston – all previously also entered guilty pleas and were sentenced for their roles in the crimes. Haywood was convicted of two counts of interference with commerce by robbery and sentenced to 60 months in addition to a consecutive term of 120 months for discharging a firearm during a crime of violence for a total of 180 months. Freeman was sentenced to 57 months for his conviction of conspiracy to interfere with commerce by robbery as well as a consecutive sentence of 120 months for discharging of a firearm during the commission of a crime of violence for a total of 177 months. Phillips was convicted of the conspiracy charge and sentenced to 97 months. Lynn was convicted of the conspiracy charge and the attempted robbery and robbery of the two armored cars and sentenced 60 months.
Loomis Armored US Inc., who operated the trucks during the alleged robbery and robbery attempt, maintains offices throughout the United States and was engaged in the business of secured armored transport of United States currency in interstate commerce and in picking up and delivering United States currency to financial institutions and check cashing businesses, both of which are industries which affect interstate commerce.
Lynn, Haywood and Moore were charged with their involvement in the Aug. 7, 2009, attempted robbery of a Loomis armored truck at the Bank of America at 3704 Old Spanish Trail in Houston. Lynn drove to the location, at which time Haywood and Moore, who were armed with Glock pistols, jumped out and shot at the guard. The guard, who has since recovered, had been filling an ATM machine, but it was already locked and, therefore, no money was obtained.
The second incident occurred on Nov. 21, 2009, at which time another guard was shot. On that date, Lynn drove Freeman and Haywood to Senor Check Cashing Store #2 located at 5950 S. Gessner Rd. in Houston. Freeman fired his pistol and shot in the direction of the guard. The guard was hit, but survived. On that same date, Phillips drove a second vehicle to the Gessner location and, following the robbery, switched vehicles with Haywood, Freeman and Lynn.
The case was investigated by the FBI’s Bank Robbery Task Force and is being prosecuted by Assistant United States Attorney Jennie Basile.
Anamosa Man Plead Guilty to Manufacturing Methamphetamine Near A SchoolRead the Press Release
Zackery Lee Smock, age 36, from Anamosa, Iowa, pled guilty to one count of attempted manufacture of methamphetamine by a drug felon near a school on July 1, 2014, in federal court in Cedar Rapids.
At the plea hearing, Smock admitted that, on March 7, 2014, he attempted to manufacture methamphetamine at a residence in Anamosa. During the course of his manufacturing, he started a fire at the residence. The residence was within 1000 feet of St. Patrick’s school in Anamosa.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Smock remains in custody of the United States Marshal pending sentencing. Smock faces a mandatory minimum sentence of one year imprisonment and a possible maximum sentence of 60 years’ imprisonment, a $4,000,000 fine, a $100 special assessment, and at least six years of supervised release following any imprisonment.
The case is being prosecuted by Special Assistant United States Attorney Lisa C. Williams and was investigated by the Anamosa Police Department, Anamosa Fire Department, Iowa Division of State Fire Marshal, and the Iowa Division of Narcotics Enforcement.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-cr-57.
Activity for July 1, 2014Read the Press Release
Cheyenne, WY Man, formerly out of Havre, Montana, Convicted for Felon in Possession of a Firearm
U.S. Attorney Christopher A. Crofts announced today that Brian Hayden Allen, formerly of Havre, Montana and currently a Cheyenne, Wyoming resident, was convicted in federal court. A jury found Allen guilty of “Felon in Possession of a Firearm” after a three-day jury trial in the U.S. District Court in Casper. Allen will be sentenced by Federal District Court Judge Scott Skavdahl on September 4, 2014.
The investigation in this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, along with the Cheyenne Police Department and Laramie County Sheriff’s Office.
Monday 30 June 2014
Virginia Man Sentenced to 18-Month Prison Term for Failing to Register as A Sex OffenderRead the Press Release
WASHINGTON – Stanley McCord, 42, of Alexandria, Va., has been sentenced to 18 months in prison on a federal charge of failure to register as a sex offender, U.S. Attorney Ronald C. Machen Jr. and Michael Hughes, U.S. Marshal for the Superior Court of the District of Columbia, announced today.
McCord has one prior conviction in Texas for a sex offense involving a minor victim, which requires him to register as a sex offender. According to the government’s evidence, McCord was registering as a sex offender in the District of Columbia, but, between April 2012 and February 2013, he lived in Alexandria, Va., and did not register that information with the District of Columbia.
McCord pled guilty in April 2014 in the U.S. District Court for the District of Columbia to failure to register as a sex offender. He was sentenced on June 27, 2014, by the Honorable Richard J. Leon. His prison term is to be followed by 10 years of supervised release. Also, upon completion of his prison term, McCord will face a warrant for a probation violation in Texas.
As part of an overall strategy to combat child exploitation, the U.S. Marshals Service launched a nationwide operation in 2010 to target sex offenders who knowingly fail to comply with their sex offender registration requirements. The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act in 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the U.S. Marshals Service, to assist the states in locating and apprehending non-compliant sex offenders.
In announcing the sentence, U.S. Attorney Machen and U.S. Marshal Hughes praised the members of the D.C. Superior Court Sex Offender Investigations Section of the U.S. Marshals Service, who investigated the case, and Assistant U.S. Attorney Ari Redbord, who prosecuted the case.
14-155United States Attorney Announces Selection of Monitor in Miron Case and Describes Remedial Reasons and Purposes for MonitoringRead the Press Release
United States Attorney James L. Santelle announced today that Stephen C. VanderBloemen, CPA, CFF, has been selected as the monitor who will oversee Miron Construction Company, Inc. as required by the Non-Prosecution Agreement (NPA) between Miron and the United States of America. The Non-Prosecution Agreement, pursuant to which Miron made a $ 4 million dollar payment to the United States of America, was announced on April 16, 2014. Mr. VanderBloemen’s work as the monitor on Miron is expected to begin immediately.
Mr. VanderBloemen is the managing partner of The VanderBloemen Group. He has more than 43 years of experience in public accounting, including 41 years serving primarily construction contractors, construction suppliers, credit grantors to contractors (sureties and bankers), and construction industry associations. His group, the VanderBloemen Group CPAs & CFFs (TVG), has earned a national reputation for excellence and operates from offices located in Waukesha, Mayville, Fond du Lac, and Juneau, Wisconsin. TVG provides a wide range of services to contractors, including assistance with project estimating, contract management, project compliance, monitoring, and accounting.
Mr. VanderBloemen is a graduate of Concordia College, attended graduate school at Marquette University, and has shared his expertise through the teaching of others at the Milwaukee School of Engineering, focusing on that academic institution’s Construction Management Degree Program. Mr. VanderBloemen also devotes more than 100 hours of his time each year to construction industry-related training courses through organizations like the Associated General Contractors (AGC) of America. He is a published author in multiple journals and the co-author of the AGC of America’s “Construction Estimating & Bidding - Theory, Principles, Process” (Text Book 1st and 2nd Editions). Mr. VanderBloemen has also been a featured speaker at National AGC events.
In announcing Mr. VanderBloemen’s appointment, United States Attorney Santelle addressed the reasons why the United States Department of Justice required a monitor in this case. Specifically, United States Attorney Santelle explained that a criminal investigation, led by the Federal Bureau of Investigation, revealed that Miron had been obtaining funds from school districts by intentionally inflating the wages Miron allegedly had paid its employees. United States Attorney Santelle stated further that an in-depth analysis of five particular school district projects and a random sampling from a pool of approximately 150 total school projects showed clearly that, when Miron billed school districts for “actual wages paid,” contrary to the express language and terms of its contracts, Miron systematically and intentionally added not only overhead costs but also a hidden profit “multiplier” totaling up to an additional 45%. United States Attorney Santelle explained that the remedial work of the appointed monitor would help to ensure that Miron ceased its practice of intentionally overbilling school districts in this manner.
United States Attorney Santelle added that the monitor would also be responsible for helping to ensure that Miron would no longer engage in “cost smoothing.” In this regard, United States Attorney Santelle explained that the criminal investigation revealed that Miron routinely transferred costs from less profitable projects to unrelated projects that could absorb the additional costs and still appear to be profitable. The result of this conduct was that all of Miron’s projects appeared profitable to outsiders. As revealed by the investigation, this “cost smoothing” also allowed Miron to close the discrepancies in its accounting records that were caused by Miron’s inflation of labor costs in its bills to public school districts. Without “cost smoothing,” Miron’s financial statements on the school projects could not be reconciled with its inflated school district billings, Santelle explained.
Finally, United States Attorney Santelle confirmed that Miron recently paid the United States the $ 4 million sum required by the NPA and that the United States is in the process of distributing that money to the five school districts identified in that agreement.
U.S. Bank to Pay $200 Million to Resolve Alleged FHA Mortgage Lending ViolationsRead the Press Release
U.S. Bank has agreed to pay the United States $200 million to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the Federal Housing Administration (FHA) that did not meet applicable requirements, the Justice Department announced today.
“By misusing government programs designed to maintain and expand homeownership, U.S. Bank not only wasted taxpayer funds, but inflicted harm on homeowners and the housing market that lasts to this day,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “As this settlement shows, we will continue to hold accountable financial institutions that violate the law by pursuing their own financial interests at the expense of hardworking Americans.”
“U.S. Bank ignored certain lending requirements causing substantial losses to taxpayers,” said United States Attorney for the Northern District of Ohio Steven M. Dettelbach. “This settlement demonstrates that the Department of Justice will not permit lenders to play fast and loose with the rules and stick the American people with their significant tab.”
“U.S. Bank’s lax mortgage underwriting practices contributed to home foreclosures across the country,” said United States Attorney for the Eastern District of Michigan Barbara L. McQuade. “This settlement recovers funds for taxpayers and demonstrates that lenders will be held accountable for engaging in irresponsible lending practices.”
During the time period covered by the settlement, U.S. Bank participated as a direct endorsement lender (DEL) in the FHA insurance program. A DEL has the authority to originate, underwrite, and certify mortgages for FHA insurance. If a loan certified for FHA insurance later defaults, the holder of the loan may submit an insurance claim to the U.S. Department of Housing and Urban Development (HUD), FHA’s parent agency, for the losses resulting from the defaulted loan. Because FHA does not review a loan before it is endorsed for FHA insurance, FHA requires a DEL to follow program rules designed to ensure that the DEL is properly underwriting and submitting mortgages for FHA insurance.
As part of the settlement, U.S. Bank admitted that, from 2006 through 2011, it repeatedly certified for FHA insurance mortgage loans that did not meet HUD underwriting requirements. U.S. Bank also admitted that its quality control program did not meet FHA requirements, and as a result, it failed to identify deficiencies in many of the loans it had certified for FHA insurance, failed to self-report many deficient loans to HUD, and failed to take the corrective action required under the program. U.S. Bank further acknowledged that its conduct caused FHA to insure thousands of loans that were not eligible for insurance and that the FHA suffered substantial losses when it later paid insurance claims on those loans.
“This substantial recovery on behalf of the Federal Housing Administration should serve as a vivid reminder of the potential consequences of not following HUD program rules, and the diligence with which we will pursue those that violate them, particularly where lenders such as U.S. Bank take actions to compromise the insurance fund,” said David A. Montoya, Inspector General of the Department of Housing and Urban Development.
“We are gratified that U.S. Bank has agreed to put this matter behind it, and we want to thank the Department of Justice and HUD’s Office of Inspector General for all of their efforts in helping us make this settlement a reality,” said Damon Smith, Acting General Counsel for the U.S. Department of Housing and Urban Development. “This settlement underscores our consistent message that following Federal Housing Administration rules for underwriting FHA-insured loans is a requirement, not an option.”
The agreement resolves potential violations of federal law based on U.S. Bank’s deficient origination of FHA insured mortgages. The agreement does not prevent state and federal authorities from pursuing enforcement actions for other origination conduct by U.S. Bank, or for any servicing or foreclosure conduct, including civil enforcement actions against U.S. Bank for violations of the CFPB’s new mortgage servicing rules that took effect on Jan. 10, 2014. U.S. Bank is a banking services company headquartered in Cincinnati, Ohio, and a wholly owned subsidiary of U.S. Bancorp, a bank holding company headquartered in Minneapolis, Minnesota.
The settlement was the result of a joint investigation conducted by HUD, its Office of Inspector General, the Civil Division of the Department of Justice, and the United States Attorney’s Offices for the Northern District of Ohio and the Eastern District of Michigan.
The settlement is part of enforcement efforts by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force, visit: www.stopfraud.gov .14-684
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Statement of FactsU.S. Bank to Pay $200 Million to Resolve Alleged FHA Mortgage Lending ViolationsRead the Press Release
U.S. Bank has agreed to pay the United States $200 million to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the Federal Housing Administration (FHA) that did not meet applicable requirements, the Justice Department announced today.
“By misusing government programs designed to maintain and expand homeownership, U.S. Bank not only wasted taxpayer funds, but inflicted harm on homeowners and the housing market that lasts to this day,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “As this settlement shows, we will continue to hold accountable financial institutions that violate the law by pursuing their own financial interests at the expense of hardworking Americans.”
“U.S. Bank ignored certain lending requirements causing substantial losses to taxpayers,” said United States Attorney for the Northern District of Ohio Steven M. Dettelbach. “This settlement demonstrates that the Department of Justice will not permit lenders to play fast and loose with the rules and stick the American people with their significant tab.”
“U.S. Bank’s lax mortgage underwriting practices contributed to home foreclosures across the country,” said United States Attorney for the Eastern District of Michigan Barbara L. McQuade. “This settlement recovers funds for taxpayers and demonstrates that lenders will be held accountable for engaging in irresponsible lending practices.”
During the time period covered by the settlement, U.S. Bank participated as a direct endorsement lender (DEL) in the FHA insurance program. A DEL has the authority to originate, underwrite, and certify mortgages for FHA insurance. If a loan certified for FHA insurance later defaults, the holder of the loan may submit an insurance claim to the U.S. Department of Housing and Urban Development (HUD), FHA’s parent agency, for the losses resulting from the defaulted loan. Because FHA does not review a loan before it is endorsed for FHA insurance, FHA requires a DEL to follow program rules designed to ensure that the DEL is properly underwriting and submitting mortgages for FHA insurance.
As part of the settlement, U.S. Bank admitted that, from 2006 through 2011, it repeatedly certified for FHA insurance mortgage loans that did not meet HUD underwriting requirements. U.S. Bank also admitted that its quality control program did not meet FHA requirements, and as a result, it failed to identify deficiencies in many of the loans it had certified for FHA insurance, failed to self-report many deficient loans to HUD, and failed to take the corrective action required under the program. U.S. Bank further acknowledged that its conduct caused FHA to insure thousands of loans that were not eligible for insurance and that the FHA suffered substantial losses when it later paid insurance claims on those loans.
“This substantial recovery on behalf of the Federal Housing Administration should serve as a vivid reminder of the potential consequences of not following HUD program rules, and the diligence with which we will pursue those that violate them, particularly where lenders such as U.S. Bank take actions to compromise the insurance fund,” said David A. Montoya, Inspector General of the Department of Housing and Urban Development.
“We are gratified that U.S. Bank has agreed to put this matter behind it, and we want to thank the Department of Justice and HUD’s Office of Inspector General for all of their efforts in helping us make this settlement a reality,” said Damon Smith, Acting General Counsel for the U.S. Department of Housing and Urban Development. “This settlement underscores our consistent message that following Federal Housing Administration rules for underwriting FHA-insured loans is a requirement, not an option.”
The agreement resolves potential violations of federal law based on U.S. Bank’s deficient origination of FHA insured mortgages. The agreement does not prevent state and federal authorities from pursuing enforcement actions for other origination conduct by U.S. Bank, or for any servicing or foreclosure conduct, including civil enforcement actions against U.S. Bank for violations of the CFPB’s new mortgage servicing rules that took effect on Jan. 10, 2014.
U.S. Bank is a banking services company headquartered in Cincinnati, Ohio, and a wholly owned subsidiary of U.S. Bancorp, a bank holding company headquartered in Minneapolis, Minnesota.The settlement was the result of a joint investigation conducted by HUD, its Office of Inspector General, the Civil Division of the Department of Justice, and the United States Attorney’s Offices for the Northern District of Ohio and the Eastern District of Michigan.
The settlement is part of enforcement efforts by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force, visit: www.stopfraud.gov.
U.S. Attorney Vance Takes Part in White House Recognition of 'Champions' of Re-entry ServicesRead the Press Release
WASHINGTON, D.C. -- Northern District of Alabama U.S. Attorney Joyce White Vance participated in today's White House event focusing on the important connection between expanding employment opportunities for people leaving prison and their ability to successfully re-enter society.
Vance was one of three of the nation's 93 U.S. attorneys who represented the Department of Justice at the White House's daylong program on ex-offender re-entry. The day concluded with U.S. Attorney General Eric Holder joining White House officials to honor local "Champions of Change" who are doing extraordinary work to facilitate job opportunities for individuals coming out of prison. According to the White House, the Champions have distinguished themselves through their extraordinary dedication and hard work to help those with criminal records re-enter society with dignity and viable employment opportunities.
"Our lives will be better if the lives of the 12,000 people who return to the community each year from Alabama prisons and jails are better," Vance said. "If we put them in a position to succeed, our communities can be safer and we can put more of our resources into education and our communities, instead of into prisons."
Vance currently is a member of the attorney general's Federal Interagency Re-entry Council. Twenty federal agencies work on the council to make communities safer by reducing criminal recidivism. Among U.S. Attorneys, Vance has been a leader in advocating for re-entry programs and criminal justice reform. Vance organized the North Alabama Re-entry Council, through which her office coordinates with federal, state, and community agencies to improve re-entry outcomes within Alabama. The Northern District of Alabama's ongoing efforts center on collaborating with state and local partners to remove barriers to successful re-entry. Some of the worst barriers are limited job opportunities, lack of a driver's license, and restricted access to housing. Within the past three years, Alabama has received federal grants to improve community supervision, job skills, and access to medication for ex-offenders.
Before this afternoon's Champions of Change recognition, the White House co-hosted a seminar with the Council of State Governments Justice Center titled, Pathways to Prosperity: How Public and Private Sectors Can Put People with Criminal Records to Work. The first session brought together business leaders to explore how governmental actions can affect private sector efforts to integrate people with criminal records into the workforce. The second session included corrections and workforce development professionals from across the country to discuss the latest strategies for improving employment outcomes for adults with criminal records, and ways to engage business leaders in those efforts.
Currently, the Council of State Governments is coordinating with Alabama state officials to develop solutions to reduce crime rates and corrections costs through a policy of justice reinvestment. CSG reports that similar justice reinvestment initiatives implemented in 20 other states have resulted in reduced crime rates, prison closures, and an approximate $5 billion in projected savings to state governments.
Two Prince George’s County Women Each Sentenced to over 2 Years in Prison for Mortgage Fraud SchemesRead the Press Release
Separate Fraud Schemes Resulted in Over $2.5 Million in Losses and
at Least 25 Individual and Corporate Victims
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Rhonda Scott, age 52, of Oxon Hill, Maryland, today to 30 months in prison followed by three years of supervised release for conspiring to commit wire fraud in connection with two separate mortgage fraud schemes which resulted in losses of over $2.5 million. Judge Bredar also entered an order that Scott forfeit $2.7 million and pay restitution of $703,000.Judge Bredar also sentenced co-defendant Niesha Williams, age 34, of Fort Washington, Maryland today to 27 months in prison followed by three years of supervised release for conspiring to commit wire fraud in connection with one of the mortgage fraud schemes. Judge Bredar also ordered that Williams forfeit $3.1 million and pay restitution of $1,445,593
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Principal Deputy Inspector General Fred W. Gibson, Jr. of the Federal Deposit Insurance Corporation; Special Agent in Charge Cary A. Rubenstein of the Housing and Urban Development Office of Inspector General; Special Agent in Charge Gene E. Morrison, Washington Field Office, U.S. Department of Justice Office of the Inspector General; Howard County Police Chief William McMahon; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Howard County State’s Attorney Dario Broccolino.
According to their plea agreements, beginning in 2008, Scott participated in several fraudulent real estate transactions that settled at M&R Title, Inc. located in Alexandria, Virginia, and at Sanford Title Services, located in Columbia, Maryland. The fraudulent transactions at each title company were part of different conspiracies. In both schemes, Scott facilitated deals between her co-conspirators, recruited individuals that could be parties to the real estate transactions, received proceeds of the fraudulent transactions through a shell company designed to hide her receipt of the funds, sent money to co-conspirators and identified mortgage transactions that the co-conspirators could use to enrich themselves.
As part of the M&R Title conspiracy, Scott, Demetrius Peete and others deceived buyers, sellers and lenders to make it appear to sellers that they were selling their property at a low price, and to buyers and lenders that the property was being sold at a higher price. The co-conspirators created paperwork for two different sales of the property at the same time. The first sale was fraudulent because it was backdated, the buyer planned to immediately flip the property in a subsequent sale and the settlement statement listed a fake loan. In the second sale, the sales price was significantly increased and the settlement statement showed a large sum being disbursed to the lender to payoff an existing lien. In fact, those funds were improperly disbursed to the co-conspirators.As to the Sanford Title conspiracy, Scott, Peete, Bonnie Kraemer, Niesha Williams, Emeka Udeze and others used many fraudulent techniques, including: short sales in which the property would be sold for a higher price than the seller was aware of; sales of properties not owned by the seller, including properties Scott purported to own but in fact did not; multiple sales of the same property at the same time; the seller and/or buyer were shown different settlement statements and the conspirators used the difference in sales price to enrich themselves; and money that should have been paid to lien holders was instead disbursed to the co-conspirators. Williams facilitated deals between her co-conspirators, sent funds illegally obtained from real estate transactions to her co-conspirators, and identified mortgage transactions that the co-conspirators could use to enrich themselves.
Both of the M&R Title and Sanford Title fraud schemes involved at least 25 victims, including lenders, sellers and buyers of real estate, title insurance companies and lien holders. The reasonably foreseeable loss associated with Scott’s conduct was at least $2.5 million. The loss associated with Williams’ offenses was at least $3.1 million.
Bonnie Kathleen Kreamer, a/k/a Bonnie Meehan, age 49, of Riva, Maryland; Emeka Udeze, age 39, of Bowie, Maryland; Shola Risikat Balogun, age 48, of Upper Marlboro; Gregory Green, age 49, of Waldorf, Maryland; and Demetrius Peete, age 46, of Manassas, Virginia, each previously pleaded guilty to their roles in the fraud schemes. Kreamer, who was responsible for the daily operations at Sanford Title, was sentenced on April 25, 2014 to 51 months in prison, and ordered to pay restitution of $2,499,048 to the victims and to forfeit $4.8 million. Green was previously sentenced to three months in prison and ordered to pay restitution of $404,596. The other conspirators await sentencing.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage Fraud/index.html.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.United States Attorney Rod J. Rosenstein commended the FBI, U.S. Secret Service, FDIC, HUD-OIG, Department of Justice OIG, Howard County Police Department and Howard County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Harry Gruber and Special Assistant United States Attorney Colleen McGuinn assigned to this case from the Howard County State’s Attorney’s Office, who prosecuted the case.
Ten Taken into Custody for Drug ViolationsRead the Press Release
CONCORD, NEW HAMPSHIRE – Ten individuals were arrested by federal, state and local authorities, announced United States Attorney John P. Kacavas.
The arrests are the result of a year-long investigation conducted by state and federal authorities into allegations of marijuana, cocaine, and methylenedioxymethamphetamine (MDMA) distribution in New Hampshire.
Based on intelligence gathered by law enforcement, the Drug Enforcement Administration and the New Hampshire State Police conducted surveillance, undercover purchases of drugs, consensual monitoring of controlled purchases, and judicially approved wiretaps to identify and arrest the following individuals in connection with the distribution network.
(1) Alkis Nakos, age 35, of 366 Arah Street, Manchester, New Hampshire, was arrested and for engaging in a conspiracy to distribute controlled substances, in violation of Title 21, United States Code, Section 846, distribution of controlled substances, in violation of Title 21, United States Code, Section 841(a)(1), and use of a communication facility to facilitate the distribution of controlled substances, in violation of Title 21, United States Code, Section 843(b);
(2) Kosmas Koustas, age 35, of 1465 Hooksett Road, Hooksett, New Hampshire, was arrested and for engaging in a conspiracy to distribute controlled substances, in violation of Title 21, United States Code, Section 846, distribution of controlled substances, in violation of Title 21, United States Code, Section 841(a)(1), and use of a communication facility to facilitate the distribution of controlled substances, in violation of Title 21, United States Code, Section 843(b);
(3) Charles Fowle, age 35, of 267 Waverly Street, Hooksett, New Hampshire, was arrested and for engaging in a conspiracy to distribute controlled substances, in violation of Title 21, United States Code, Section 846, distribution of controlled substances, in violation of Title 21, United States Code, Section 841(a)(1), and use of a communication facility to facilitate the distribution of controlled substances, in violation of Title 21, United States Code, Section 843(b);
(4) Frank Fowle, age 36, of 330 Milford Street, Manchester, New Hampshire, was arrested and for engaging in a conspiracy to distribute controlled substances, in violation of Title 21, United States Code, Section 846, distribution of controlled substances, in violation of Title 21, United States Code, Section 841(a)(1), and use of a communication facility to facilitate the distribution of controlled substances, in violation of Title 21, United States Code, Section 843(b);
(5) Christopher Ranfos, age 36, of 241 Boutwell Road, Manchester, New Hampshire, was arrested and for engaging in a conspiracy to distribute controlled substances, in violation of Title 21, United States Code, Section 846, distribution of controlled substances, in violation of Title 21, United States Code, Section 841(a)(1), and use of a communication facility to facilitate the distribution of controlled substances, in violation of Title 21, United States Code, Section 843(b);
(6) Kristopher Venturini, age 35, of 374 Thornton Street, Manchester, New Hampshire, was arrested and for engaging in a conspiracy to distribute controlled substances, in violation of Title 21, United States Code, Section 846, distribution of controlled substances, in violation of Title 21, United States Code, Section 841(a)(1), and use of a communication facility to facilitate the distribution of controlled substances, in violation of Title 21, United States Code, Section 843(b);
(7) Marc Guillemette, age 37, of 255 Waverly Street, Manchester, New Hampshire, was arrested and for engaging in a conspiracy to distribute controlled substances, in violation of Title 21, United States Code, Section 846, distribution of controlled substances, in violation of Title 21, United States Code, Section 841(a)(1), and use of a communication facility to facilitate the distribution of controlled substances, in violation of Title 21, United States Code, Section 843(b);
(8) John Horne, Jr., age 32, of 301 Prescott Road, Epping, New Hampshire, was arrested and for engaging in a conspiracy to distribute controlled substances, in violation of Title 21, United States Code, Section 846, distribution of controlled substances, in violation of Title 21, United States Code, Section 841(a)(1), and use of a communication facility to facilitate the distribution of controlled substances, in violation of Title 21, United States Code, Section 843(b); and
(9) Jonathan Venturini, age 32, of 516 Notre Dame Avenue, Manchester, New Hampshire, was arrested and for engaging in a conspiracy to distribute marijuana, in violation of Title 21, United States Code, Section 846, distribution of marijuana, in violation of Title 21, United States Code, Section 841(a)(1), and aiding and abetting the distribution of marijuana, in violation of Title 18, United States Code, Section 2.
(10) Jonathan Handschumaker, was arrested and for engaging in a conspiracy to distribute marijuana, in violation of Title 21, United States Code, Section 846, distribution of marijuana, in violation of Title 21, United States Code, Section 841(a)(1), and aiding and abetting the distribution of marijuana, in violation of Title 18, United States Code, Section 2.
Search warrants and seizures were executed in connection with the investigation that resulted in the seizure of approximately 30 pounds of marijuana, $85,000 in United States currency, paraphernalia associated with drug distribution such as digital scales and money counting machines, and firearms including a machine gun with a silencer, numerous handguns and hundreds of rounds of ammunition.
The investigation was conducted by the Drug Enforcement Administration, the New Hampshire State Police, and the Manchester, New Hampshire, Police Department. The arrests consisted of a joint federal, state and local effort. Members of the arrest teams included the: (1) Drug Enforcement Administration; (2) Federal Bureau of Investigation; (3) Immigration and Customs Enforcement; (4) United States Marshals Service; (5) New Hampshire State Police; (6) the Manchester, New Hampshire, Police Department; and (7) New Hampshire Liquor Enforcement.
Supporting Documents in U.S. V. BNP ParibasRead the Press Release
BNP Paribas Information
BNP Paribas Statement of Facts
BNP Paribas Notice of Intent
BNP Paribas Plea Agreement
BNP Paribas Consent Preliminary Order of ForfeitureStatement of Manhattan U.S. Attorney Preet BhararaOn the Guilty Plea by BNP ParibasRead the Press Release
"BNPP banked on never being held to account for its criminal support of countries and entities engaged in acts of terrorism and other atrocities. But that is exactly what we do today. BNPP, the world's fourth largest bank, has agreed to plead guilty and pay penalties of almost $9 billion for performing the hat trick of sanctions violations, unlawfully opening the doors of the U.S. financial markets to three sanctioned countries, Sudan, Iran, and Cuba. For years, BNPP provided access to billions of dollars to these sanctioned countries, as well as to individuals and groups specifically identified and designated by the U.S. government as being subject to sanctions. The bank did so deliberately and secretly, in ways designed to evade detection by the U.S. authorities. For its years-long and wide-ranging criminal conduct, BNPP will soon plead guilty in a federal courthouse in Manhattan."
St. Francis Man Sentenced for Simple AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man charged with Simple Assault pled guilty to and was sentenced on June 27, 2014, by U.S. Magistrate Judge Mark A. Moreno.
Jeremy Iron, age 29, was sentenced to 2 years of probation, and $10 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on February 16, 2014, when Iron returned home to the residence that he shared with the victim and her children. There was an argument and Iron knocked the phone out of the victims hand and assaulted her.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Tim Maher.
Iron was released from custody.
SoCal Man Who Attempted to Assist Al-Qai'da by Providing Weapons Training to Fighters in Pakistan Sentenced to 13 Years in PrisonRead the Press Release
LOS ANGELES – An Orange County man who admitted that he intended to assist al-Qai'da by traveling to Pakistan, where he would provide weapons training to members of the terrorist group, was sentenced this morning to 13 years in federal prison.
Sinh Vinh Ngo Nguyen, 25, of Garden Grove, California, was sentenced by United States District Judge John F. Walter, who called the crime “a very serious offense that requires a correspondingly long sentence.”
Nguyen pleaded guilty late last year to one count of attempting to provide material support to a designated foreign terrorist organization. Nguyen, who also used the name Hasan Abu Omar Ghannoum, admitted that in late 2012 he travelled to Syria where he joined opposition forces. Using a social network site during a four-month period he was in Syria, Nguyen told people that he was fighting against the Assad regime and that he had had a “confirmed kill.” After he returned to the United States, Nguyen told associates that he had offered to train al-Qai'da forces in Syria, but his offer had been turned down.
Between August 3 and October 11, 2013 Nguyen met with a man he thought was an al-Qai'da recruiter, but who in fact was working with the FBI. Within the first few minutes of their first meetings, Nguyen began questioning the man to determine if he was a fellow jihadist, according to a plea agreement filed in federal court. Nguyen told the man about his exploits in Syria and said he wanted to return to jihad because “this was what he was born to do.” During their meetings, Nguyen and the man he thought was an al-Qai'da recruiter discussed how Nguyen could travel to Pakistan under a fraudulently obtained United States passport. After Nguyen gave the purported recruiter a photo of himself and a passport application with bogus information, Nguyen agreed to travel to Pakistan, where he would train 30 al-Qai'da fighters for 5 or 6 weeks to prepare them "for a guerilla warfare ambush attack on coalition forces" that would take place in late 2013, according to the plea agreement.
With the intention to travel to Pakistan to train al-Qai'da forces for the ambush, Nguyen on October 1 purchased a plane ticket to travel from Mexico to Peshawar, Pakistan. On October 11, 2013, Nguyen went to a bus station in Santa Ana where he purchased a ticket to Mexico and was arrested by FBI agents. When he was taken into custody, Nguyen had in his possession the false passport and a computer hard drive that contained “over 180 training videos on shooting firearms.”
Nguyen has been in federal custody since his arrest.
The case against Nguyen is the product of an investigation by the Federal Bureau of Investigation and the Joint Terrorism Task Force.
Release No. 14-080
Second Mexican National Pleads Guilty in Bakersfield Stash House CaseRead the Press Release
FRESNO, Calif. — Gamaliel Salas-Mendoza, aka Rene Salas Mendoza (Salas), 38, of Mexico, pleaded guilty today to conspiracy to distribute and to possess with the intent to distribute methamphetamine, heroin, and cocaine, United States Attorney Benjamin B. Wagner announced.
According to court documents, Salas and Miguel Sanchez-Mendoza (Sanchez), 46, also of Mexico, maintained a stash house in Bakersfield where law enforcement officers seized seven pounds of methamphetamine, one and a half pounds of cocaine, and one half pound of heroin, all packaged for sale. In addition to the drugs, officers found digital scales, cutting agents, a kilogram press, and $9,483 in cash, which has been forfeited.
Sanchez previously entered a guilty plea to the drug conspiracy and was sentenced last month to an eight-year prison term.
This case was the product of an investigation by the U.S. Drug Enforcement Administration, Kern County Sheriff’s Office Narcotics Enforcement Team, Kern County Sheriff’s Office Major Violators Unit, and the California Multijurisdictional Methamphetamine Enforcement Team. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Salas is scheduled to be sentenced by Senior U.S. District Judge Anthony W. Ishii on September 15, 2014. Salas faces a mandatory minimum prison term of 10 years, a maximum prison term of life and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. Both Salas and Sanchez are subject to deportation to Mexico following the completion of any prison term imposed.
Second Brother Sentenced to Prison in Methamphetamine ConspiracyRead the Press Release
HONOLULU – Joshua Lew, age 28, of Waialua, was sentenced today by United States District Judge J. Michael Seabright to 97 months imprisonment for being a member of a conspiracy to distribute and possess, with intent to distribute, 50 grams or more of methamphetamine. Lew’s brother and co-defendant, Jacob Drummondo-Farias, 31, also of Waialua, was previously sentenced on February 24, 2014 to 324 months in prison for being a manager and supervisor of the conspiracy.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to information presented in court, Lew and Drummondo-Farias agreed with other individuals to distribute methamphetamine that was sent from California, via express mail services, to Honolulu during 2011 and 2012. Pursuant to that agreement, Lew and Drummondo-Farias orchestrated the shipment of 890 grams of methamphetamine which was intercepted at the Honolulu Airport on January 26, 2012 by federal law enforcement authorities. Authorities arrested Lew after he returned to Hawaii from the Marshall Islands.
The investigation which resulted in the prosecution was conducted by the Drug Enforcement Administration Hawaii Airport Task Force and the United States Postal Service. Assistant U.S. Attorney Mark A. Inciong handled the prosecution.
San Diego Man Who Stole Identities of Deceased Children Convicted on All Countys of Identity Theft, Tax Evasion and False Statements to BanksRead the Press Release
Lloyd Irving Taylor, a San Diego tax attorney and Certified Public Accountant, was convicted by a federal jury today in a complex tax-evasion scheme involving the creation of bank accounts in the names of deceased children and fake churches.
Following a week-long trial, a jury deliberated for 30 minutes before reaching a verdict that rendered Taylor, 71, guilty of all 19 counts charged, including aggravated identity theft, false statements to a financial institution, tax evasion, corruptly endeavoring to impair or impede the IRS and making false statements on United States passport applications. The defendant has been in custody since his arrest in April of 2013.
According to evidence presented at trial, Taylor stole the identities of deceased children, used them as aliases and obtained fraudulent passports and other identification documents. He then used the passports and other documents to open and maintain multiple financial accounts in order to hide his income from the IRS and to transfer funds from these accounts to purchase various assets, such as gold coins. The purchase of gold coins was done, in part, to evade taxes.
Likewise, Taylor formed over a dozen fraudulent tax-exempt religious institutions and opened 31 related bank accounts, including investment accounts in the names of the fake churches, so his income could grow tax free.
Among the witnesses who testified at trial were the brother of one of the deceased children as well as a blind elderly woman whose social security number was stolen and used by the defendant. Also during the trial, prosecutors showed the jury death certificates of four deceased children, who died in the 1950s, and displayed $1.6 million in gold coins the defendant had hidden in a storage locker.
According to trial witnesses, Taylor failed to report $5 million in income during the span of the fraud, and he owed the IRS $1.6 million. During his 42 years of working, Taylor had filed a tax return just seven times, according to trial testimony.
At Taylor’s bond hearing in April, 2013, a judge ordered him detained while pending trial based on a number of circumstances, including his international travel on his false passports, the millions of dollars he controlled through dozens of bank accounts, and his numerous false statements to banks in furtherance of his criminal activity.
“We are very pleased with the jury’s quick and decisive verdict,” said U.S. Attorney Laura Duffy. “Lloyd Taylor was able to hide his money for a while, but his days of exploiting dead children and the elderly to line his pockets are over.”
“Mr. Taylor tried in every conceivable way to hide his income from the IRS—from hiding income in the names of his stolen identities and non-existent churches to converting income to gold coins,” said IRS Criminal Investigation’s Special Agent in Charge Erick Martinez. “This conviction sends a clear message that IRS Criminal Investigation is working hard to make sure that all taxpayers file and pay their fair share of taxes.”
“The U.S. Department of State’s Diplomatic Security Service is committed to the protection of the U.S. passport, and the investigation of those who would obtain and use it for illegal gain. DSS is pleased to have contributed the initial charges in this investigation, leading to the arrest, indictment and conviction of Taylor,” said DS Los Angeles Field Office Special Agent-in-Charge Robert Myers.
DEFENDANT Criminal Case No. 13CR1390-MMALloyd Taylor
Age: 71 San Diego, CA CHARGESCounts 1-3: Title 18, United States Code, Section 1542 – Making a False Statement on a United States Passport Application
INVESTIGATING AGENCIES
Maximum penalties: 10 years custody; $250,000 fine; $100 Special Assessment; 3 year supervised release.
Count 4: Title 26, United States Code, Section 7212 – Corrupt Endeavor to Impede and Impair the Due Administration of the Internal Revenue Laws
Maximum penalties: 3 years in prison, a fine up to $250,000, and term of supervised release of not more than 1 year.
Counts 5-6: Title 26, United States Code, Section 7201 – Tax Evasion
Maximum penalties: 5 years in prison, a fine of $250,000, and a term of supervised release of not more than 3 years.
Counts 7-13: Title 18, United States Code, Section1014 – False Statements to a Federally Insured Financial Institution
Maximum penalties: 30 years in prison, a fine of $1,000,000, and a term of supervised release of 5 years.
Counts 14-19: Title 18, United States Code, Section 1028A – Aggravated Identity Theft
Maximum penalties: 2 years consecutive to the sentence imposed for the underlying offense.San Diego Regional Fraud Task Force (multi-agency task force comprised of members of the United States Secret Service, the San Diego Police Department, and the San Diego District Attorney’s Office)
Internal Revenue Service
United States Department of State, Office of Diplomatic Security*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.
Retired Air Force Service Member Indicted for Stealing and Using Credit Cards of Fellow Service MembersRead the Press Release
SAN DIEGO – A retired Air Force senior master sergeant is charged in an indictment unsealed today with stealing credit cards from fellow service members on numerous San Diego area military installations, often while they exercised at base gymnasiums, and using the cards to make unauthorized purchases and obtain thousands of dollars in cash advances.
Christopher Dwan Underwood, 42, was indicted by a federal grand jury and arrested Friday. He made his first appearance in federal court this morning to face charges of wire fraud, bank fraud and aggravated identity theft. A bond hearing was set for July 3, 2014 at 10 a.m. before U.S. District Judge Gonzalo P. Curiel.
According to the indictment, Underwood had access to military installations because of his retiree status. He preyed on victims who left their personal belongings unattended during gym workouts on bases, and on more than 30 occasions he swiped military-issued credit and debit cards and victims’ personal information, such as dates of birth and social security numbers.
Government Travel Charge Cards, known as GTCCs, are authorized for use only when a cardholder is authorized to go on official military travel. Posing as the cardholders and using their personal information, Underwood called Citibank, the card issuer, to activate the cards. Once the cards were activated, he made over $20,000 in unauthorized purchases and cash advances, the indictment said.
DEFENDANTChristopher Dwan Underwood
Age: 42 San Diego, CA CHARGES18 U.S.C. § 1343 – Wire Fraud (30 years maximum sentence)
INVESTIGATING AGENCIES
18 U.S.C. § 1344 – Bank Fraud (30 years maximum sentence)
18 U.S.C. § 1028A – Aggravated Identity Theft (mandatory-minimum two-year sentence)Naval Criminal Investigative Service
Marine Corps Criminal Investigation Division
Navy Criminal Investigation Division*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.
Registered Sex Offender Sentenced to 20 Years for Sending Obscene Material to A MinorRead the Press Release
WICHITA, KAN. A registered sex offender was sentenced to 20 years in federal prison Monday for sending obscene material to a minor while he was a patient at Larned State Hospital, U.S. Attorney Barry Grissom said.
Christopher M. Case, 34, pleaded guilty to one count of transferring obscene material to a minor. In his plea, he admitted that he resided in the Sexual Predator Treatment Program of Larned State Hospital when he committed the crime. In mid-2011 he obtained access to a smartphone, which he shared with other residents. In December 2011 and January 2012 he learned that another resident of the program was using the smartphone to communicate with a 13-year-old female via email and chat. The girl was in Montana.
On January 16, 2012, Case used the smartphone to send the girl video of himself masturbating.
Grissom commended the Wichita Police Department=s Internet Crimes Against Children Task Force, Assistant U.S. Attorney Jason Hart and Assistant Attorney General Steve Karrer of Kansas Attorney General Derek Schmidt’s office for their work on the case.Project Save Our ChildrenRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Kansas City, Mo., man who has been living in Thailand was sentenced in federal court today for fleeing the United States in 2007 to avoid paying child support.
Randy Lee Essary, 61, of Springfield, Mo., was sentenced by U.S. District Judge Brian C. Wimes to 21 months in federal prison without parole. The court also ordered Essary to pay $170,891 in child support.
Essary was a resident of Chon Buri, Thailand, where he was employed as the senior vice president of development for Eclipse Hotels and Development, which is based in Manila, Philippines and in Hong Kong.
Essary, who pleaded guilty on Feb. 11, 2014, admitted that he has failed to pay any court-ordered child support for his son for more than nine years, since January 2005. Essary owes $170,891 in child support.
Essary was a resident of Missouri in 1996. On Feb. 9, 1996, the Jackson County Circuit Court ordered him to pay $1,500 in monthly child support payments for his son, who currently resides with his mother in Utah.
Essary’s last documented entry into the United States and exit thereafter was on Sept. 12, 2007, to attend his daughter’s wedding in Illinois. Essary did not fly directly into the United States for the wedding. Instead, Essary flew from Thailand or the Philippines to Canada. Border crossing records confirm Essary then walked across the border from Canada into the United States at Blaine, Wash. He returned to Thailand in the same manner – by walking across the border at Canada and flying back to Thailand.
Essary was arrested at LAX airport when he returned to the United States on Feb. 22, 2012.
This case was being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the Department of Health and Human Services, Office of Inspector General.
Project Save Our Children
Project Save Our Children is a multiagency law enforcement initiative that investigates and prosecutes the most egregious child support cases. Its members include investigative analysts from the Department of Health and Human Services, Office of Inspector General, the Administration for Children and Families (ACF) Office of Child Support Enforcement (OCSE), the U.S. Marshals Service, U.S. Attorneys' offices, and the Department of Justice, along with child support agencies across the United States. These entities identify, investigate, and prosecute noncustodial parents who knowingly fail to pay support obligations and meet the criteria for federal prosecution under the Deadbeat Parents Punishment Act. More information about federal child support enforcement is available at http://oig.hhs.gov/fraud/child-support-enforcement/Physician Sentenced for Medicare FraudRead the Press Release
FARGO – U.S. Attorney Timothy Q. Purdon announced that John C. Chen, 50, Seattle, Washington, was sentenced on June 30, 2014, before U.S. District Judge Ralph R. Erickson to one year of probation for unlawful possession of an identification feature. Chen, a physician, was also ordered to pay restitution of $56,642.52 to the Centers for Medicare and Medicaid Services, which he satisfied as part of $150,000.00 settlement of a parallel civil proceedings in the Western District of Washington alleging violations under the False Claims Act. Chen was ordered to pay a $25 special assessment to the Crime Victims Fund in addition to his sentence.
Chen pleaded guilty to one misdemeanor count of unlawful possession of an identification feature on June 30, 2014, related to certain claims he submitted to Medicare between 2007 and 2010 for patient services that were not rendered. Chen admitted in a plea agreement that he submitted claims for office visits that did not take place because the defendant was physically outside the United States. The claims, which originated from the Seattle area, were made through Noridian Administrative
Services, now known as Noridian Healthcare Solutions, LLC, a North Dakota based Medicare Administrative Contractor. As part of its responsibilities to Medicare, Noridian Healthcare Solutions, LLC, processes and pays Medicare claims arising from durable equipment suppliers throughout the State of Washington.The case was investigated by the Department of Health and Human Services, Office of Inspector General, Office of Investigations. The case was prosecuted by Special Assistant U.S. Attorney Matthew Greenley.
Palisade Man Sentenced to 15 Years for Producing Child PornographyRead the Press Release
Jerald Vrbas, age 60, of Palisade, Nebraska, was sentenced in United States District Court for producing child pornography. The Honorable John M. Gerrard committed Vrbas to the custody of the United States Bureau of Prisons for a term of fifteen (15) years. There is no parole in the federal penal system. After his release from prison Vrbas will be on supervised release for an additional fifteen years. The Court further noted that Vrbas will be in prison until age 75 and remain under supervision until age 90.
Vrbas took sexually explicit pictures of a three year old child in his home in Palisade. After taking the pictures he uploaded them to a Russian website where they could be viewed by others. The website reported the violation and the Internet Protocol address of the offending computer to the Department of Homeland Security. Further investigation determined that Vrbas had also distributed the images of the three year old child and other child pornography to an individual in Iowa and a second individual in Wauneta, Nebraska.
United States Attorney Deborah R. Gilg expressed her appreciation to Homeland Security Investigations and the North Platte Police Department for their thorough investigation. U.S. Attorney Gilg reiterated that the sexual exploitation of minors will not be tolerated and those who produce, distribute and possess child pornography will face harsh federal penalties for doing so.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Opelousas Man Pleads Guilty to Bankruptcy FraudRead the Press Release
LAFAYETTE, La. –An Opelousas man pleaded guilty to concealing his bail bonds business income during bankruptcy proceedings, U.S. Attorney Stephanie A. Finley announced today.
Kirby L. Daigle, 67, of Opelousas, La., entered a conditional guilty plea before U.S. Magistrate Judge C. Michael Hill to one count of making a false statement under penalty of perjury during bankruptcy proceedings. The plea will become final when accepted by U.S. District Judge Elizabeth E. Foote. According to evidence presented at the guilty plea, Daigle filed for Chapter 7 bankruptcy on December 22, 2009. On bankruptcy documents, under the section for income, he wrote “unemployed,” and under the section for income from operating a business, he wrote “none”. The incomes he did list were veteran’s benefits and Social Security disability payments. Daigle in fact owned a bail bonds business, and he wrote bonds and collected commissions on those bonds at the time he filed bankruptcy. He also used sub-producers to write bonds under his bonding license, and he was paid a fee when a sub-producer wrote a bond.
Daigle faces a maximum of five years in prison, three years of supervised release, and a $250,000 fine. Daigle’s sentencing was set for September 19, 2014.
The Social Security Administration conducted the investigation. Assistant U.S. Attorneys Robert C. Abendroth and Myers P. Namie are prosecuting the case.
Mission Man Sentenced for Assault by Striking, Beating and WoundingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man convicted of Assault by Striking, Beating, and Wounding was sentenced on June 26, 2014, by U.S. Magistrate Judge Mark A. Moreno.
Waylon Black Lance, Jr., age 24, was sentenced to 12 months in custody, 1 year of supervised release, and a $25 special assessment to the Federal Crime Victims Fund.
Black Lance was indicted by a federal grand jury on March 11, 2014, for First Degree Burglary, Assault with a Dangerous Weapon, and Assault Resulting in Serious Bodily Injury. He pled guilty to Assault by Striking Beating, and Wounding on May 13, 2014.
The conviction stems from an incident that took place on July 2, 2013, when Black Lance walked from his home to the home of the victim. After a verbal altercation started, Black Lance struck the victim on the head and in the face with his fists.
This case was investigated by Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers prosecuted the case.
Black Lance was immediately turned over to the custody of the U.S. Marshals Service.
Methamphetamine Transportation Coordinator Sentenced to 210 MonthsRead the Press Release
SAN DIEGO – Tijuana-based methamphetamine trafficker Salvador Walker was sentenced today by U.S. District Judge Roger T. Benitez to more than 17 years in prison for his leadership role as a transportation coordinator in a large drug-trafficking conspiracy.
Walker, 56, was convicted by a federal jury in September of 2013 after a three-day trial. According to evidence presented at trial, Walker’s trafficking activity first came to the attention of authorities in 2011 after Customs and Border Protection officers arrested Jaime Garcia-Covarrubias, George Ramirez and Gerardo Ramos-Tabardillo as they attempted to drive separate vehicles loaded with methamphetamine through the San Ysidro, California Port of Entry. All three couriers were subsequently convicted of importation of methamphetamine.
According to court documents, an investigation conducted by the Department of Homeland Security identified Salvador Walker as the link among each of the methamphetamine loads. The investigation revealed that Walker was responsible for recruiting drivers to import narcotics into the United States, and that he directly oversaw efforts to load methamphetamine into compartments in vehicles to bring to the United States. Agents learned that the three couriers alone made dozens of trips to Tijuana to load their vehicles with methamphetamine and then successfully crossed the drugs into the United States and traveled to deliver the methamphetamine to Walker’s associates in the Los Angeles area.
During Walker’s trial, the United States presented evidence that Walker supervised these drug couriers as they transported methamphetamine to associates in Anaheim as well as narcotics proceeds back to Mexico. After the presentation of evidence, a jury convicted Walker of conspiring with others to import methamphetamine.
“Methamphetamine is a particularly dangerous drug with devastating effects on the user and the community,” said United States Attorney Laura E. Duffy. “The leaders and organizers of drug importation rings face significant consequences for their actions. Today’s sentence is a warning to all those leaders that they will be brought to justice and face significant custodial time for their aggravated crimes.”
DEFENDANT Criminal Case No. 12-CR-0909-BENSalvador Walker
Age: 56 Tijuana, Baja California CHARGESCount 1: Title 21, United States Code, Sections 952, 960 and 963 - Conspiracy to Import Methamphetamine; Maximum penalty: Life Imprisonment
INVESTIGATING AGENCIESHomeland Security Investigations
Customs & Border Protection*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.
McLaughlin Woman Charged with AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, woman has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Gwendolyn Iron Shield, a/k/a Gwendolyn Taken Alive, age 40, was indicted on June 10, 2014. She appeared before U.S. Magistrate Judge William D. Gerdes on June 24, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about April 20, 2014, Iron Shield assaulted a male adult with a knife, which resulted in serious bodily injury.
The charges are merely accusations and Iron Shield is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Law Enforcement Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Iron Shield was released on bond pending trial. A trial date has not been set.
McLaughlin Man Charged with Child Abuse and Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Child Abuse and Domestic Assault by a Habitual Offender.
Kyle White Bull, age 27, was indicted on June 10, 2014. He appeared before U.S. Magistrate Judge William D. Gerdes on June 24, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $400 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about April 16, 2014, White Bull abused, exposed, tortured, tormented and cruelly punished three juveniles, as well as committed a domestic assault. At the time of the assault, White Bull had at least two separate prior convictions for assaults that were against a spouse or intimate partner.
The charges are merely accusations and White Bull is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Law Enforcement Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
White Bull was released on bond pending trial. A trial date has not been set.
Madison Man Sentenced to more than 7 Years Imprisonment for his Role in a Conspiracy to Distribute Methamphetamine, Heroin, and CocaineRead the Press Release
United States Attorney Deborah R. Gilg announced that Heriberto Avila-Mercado of Madison, Nebraska, was sentenced on June 27, 2014, to 87 months in prison by United States District Judge John M. Gerrard. Avila-Mercado had previously pled guilty for his involvement in a conspiracy involving the distribution of multiple pounds of “ice” methamphetamine, heroin, and cocaine in the Madison, Nebraska area dating back to January of 2002.
This case was the result of a joint investigation by the Drug Enforcement Administration, the Nebraska State Patrol, and Homeland Security Investigations.
Latin Kings’ Leader of Little Village Region Sentenced to 35 Years in Prison for RICO Conspiracy and Related Gang CrimesRead the Press Release
CHICAGO — A high-ranking leader of the Latin Kings street gang was sentenced today to 35 years in federal prison after being convicted of racketeering conspiracy and related charges involving narcotics trafficking and violence that plagued the Little Village neighborhood on the city’s west side. The defendant, JUAN AMAYA, 38, was convicted by a jury in March of this year after a trial in U.S. District Court.
In 2008, Amaya was the leader, or “Regional Inca,” of the Almighty Latin King Nation’s 26th Street Region, encompassing Little Village, the gang’s most important stronghold. Amaya was “in charge of over 1,000 soldiers ― many of whom were simply boys sent off to kill or be killed” under rules and policies he oversaw, the government argued in seeking a sentence of 40 years imprisonment.
Amaya was held responsible for participating in a conspiracy to commit murder, according to findings by U.S. District Judge Rebecca Pallmeyer, who imposed the sentence in Federal Court. Amaya must serve at least 85 percent of the sentence.
Last week, Nedal Issa, who was the Inca of the Latin Kings’ Cicero Section of the 26th Street Region and who pleaded guilty, cooperated, and testified as a government witness, was sentenced to nearly 17 years in prison by U.S. District Judge Charles Norgle. Amaya’s sentencing marks the last significant event in cases since 2008 that resulted in federal convictions of, and lengthy sentences for, Augustin Zambrano, the Latin Kings’ leader or “Corona;” Vicente Garcia, the gang’s “Supreme Regional Inca;” Fernando King, who preceded Garcia as second-incommand; and more than two dozen other top-ranking leaders.
“These sentences hold these defendants accountable for the barbaric enterprise known as the Latin Kings and for their roles in murder, attempted murder, shootings, beatings, drug trafficking, and other crimes,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “I want to thank our local, state and federal law enforcement partners for their brave and outstanding work resulting in a major impact on this gang enterprise,” Mr. Fardon added.
The evidence at Amaya’s trial showed that by 2008, just a couple of years after he was released on parole from a 24-year sentence for a 1992 murder conviction, Amaya was promoted to Regional Inca of the Little Village Region, reporting only to Garcia and Zambrano and effectively running the gang at their behest. During his tenure, Amaya discussed 25 shootings committed by his underlings while expressing pride at the consistency of violence. All told, hundreds of shootings resulting from Latin Kings conduct occurred in Little Village during the period of Amaya’s prominence, according to the government.
Amaya was indicted separately in 2012 following the 2008 and 2009 indictments of more than 30 top leaders of the Latin Kings. All have been convicted and sentenced except for a few defendants who remain fugitives. From its origin and base in the west side Little Village neighborhood, the Latin Kings spread throughout Chicago and Illinois and established branches in other states, where local leaders acted with some autonomy but adhered to the rules and hierarchy of the Chicago gang, according to trial evidence and court records.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Carl Vasilko, Special Agent-in-Charge of the Chicago Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Chicago Police Department, the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI) in Chicago, the Cook County Sheriff’s Police, and the Joliet Metropolitan Area Narcotics Squad also had significant roles in the investigation, which was conducted through the federal High Intensity Drug-Trafficking Area (HIDTA) Task Force and under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF).
In late 2006, ATF agents led an investigation that resulted in federal drug trafficking and firearms charges against 38 Latin Kings members and associates. In 2008, the FBI led an investigation that resulted in state and federal charges against 40 Latin Kings members and associates, including Zambrano and numerous co-defendants. In total, nearly 100 Latin Kings members and associates have faced state or federal charges since 2006. The convictions resulted from a sustained, coordinated effort by federal law enforcement agencies, working together with the Chicago Police Department and other state and local partners, to dismantle the hierarchy of the Latin Kings and other highly-organized, often violent Chicago street gangs.
Zambrano was the highest-ranking Latin King to be convicted and sentenced since Gustavo “Gino” Colon, who also holds the title of “Corona,” was sentenced to life in prison in 2000.
The government was represented by Assistant U.S. Attorneys Andrew Porter, Nancy DePodesta and Tiffany McCormick.
Jury Convicts Houston Man for Robbery of Postal VehicleRead the Press Release
HOUSTON – Kenton Deon Harrell, 41, has been convicted of conspiracy to interfere with commerce by robbery, announced U.S. Attorney Kenneth Magidson. A federal jury convicted the Houston resident this morning following four days of trial and approximately three hours of deliberation.
The jury heard that on or about Feb. 21, 2013, Harrell met with Charles Ray Blake and Kenneth Shane Howard to plan the robbery of a contract postal vehicle. The three men had received information that the vehicle contained more than $2 million in cash and precious metals. Evidence at trial showed that the three men had been provided with a description of the vehicle, the route it would be taking and the time the vehicle would leave the post office in downtown Houston.
According to testimony, the co-conspirators acted on that information and stopped the vehicle as planned as it entered onto I-10 from downtown Houston. They forcibly removed the driver at gun point and drove the vehicle to a location where they removed jewelry worth approximately $240,000.
Blake, 41, Howard, 34, and Malcolm Derrail Williams, 32, all of Houston, previously pleaded guilty for their respective roles in the scheme and are pending sentencing, Blake will be sentenced Sept. 9, 2014, while Howard, Williams and Harrell are set for Oct. 10, 2014. Blake was permitted to remain on bond, while Howard and Williams were ordered to remain in custody. Previously released on bond, Harrell was taken into custody where he will remain pending sentencing. All face up to 20 years in federal prison and a possible $250,000 fine.
This case was investigated by the U.S. Postal Inspection Service. Assistant United States Attorneys Richard D. Hanes and Sharad Khandelwal prosecuted the case.
Johnstown Woman Pleads Guilty to Drug ChargesRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty in federal court to charges of violating various federal narcotics laws, United States Attorney David J. Hickton announced today.
Rukiya R. Smith, 35, pleaded guilty to two counts before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that Smith distributed less than 28 grams of cocaine base, commonly known as "crack," and less than 100 grams of heroin on March 5, 2013, and she possessed less than 100 grams of heroin on April 24, 2013, with the intent to distribute it.
Judge Gibson scheduled sentencing for Dec. 11, 2014, at 11 a.m. The law provides for a total sentence of 40 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Smith.
Johnstown Man Pleads Guilty to Heroin Distribution ChargeRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of distributing heroin, United States Attorney David J. Hickton announced today.
Quinn Abdul Baxter, 24, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on Nov. 7, 2012, Baxter distributed less than 100 grams of heroin.
Judge Gibson scheduled sentencing for Dec. 8, 2014, at 1 p.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Baxter.
Jemez Pueblo Woman Sentenced to Probation for Embezzling Pueblo FundsRead the Press Release
ALBUQUERQUE – Mary Cathy Sabado, 48, a member and resident of Jemez Pueblo, was sentenced this morning to a five-year term of probation for her conviction for embezzling money belonging to an Indian tribal organization. The court will schedule a hearing to determine the amount of restitution Sabado will be required to pay to the victims of her criminal conduct.
Sabado pleaded guilty on Feb. 19, 2014, to a felony information charging her with embezzlement and theft from an Indian tribal organization. In entering her guilty plea, Sabado admitted that between Feb. 2010 and Oct. 2011, she embezzled $18,095.28 in monies belonging to Jemez Pueblo. At the time she committed this offense, Sabado was the coordinator for the Jemez Vocational Rehabilitation Project. Sabado abused her position as an employee of the Pueblo by using purchase orders and a tribal credit card to make unauthorized purchases for her personal use.
The case was investigated by the Albuquerque office of the FBI and was prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
Houston Man Sentenced for Threatening to Bomb SynagogueRead the Press Release
Dante Phearse, 33, was sentenced today by U.S. District Judge Kenneth M. Hoyt to serve 33 months in prison for calling in a bomb threat to Congregation Beth Israel, a synagogue in Houston. The announcement is being made jointly by the Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the Southern District of Texas. Phearse was further ordered to pay $13,000 in restitution and will serve three years of supervised release following completion of his prison term.
On April 28, 2014, Phearse pleaded guilty to the civil rights violation of threatening to bomb a synagogue and to making a telephone bomb threat. As part of his plea, Phearse admitted that on April 30, 2013, he willfully obstructed members of Congregation Beth Israel from enjoying the free exercise of their religious beliefs by threat of force with an explosive device. Phearse also admitted to using an instrument of interstate commerce to communicate a threat to kill and injure people and to destroy a building by means of an explosive device.
As a result of Phearse’s threats, the school at Congregation Beth Israel was closed for a day and extra security was hired to guard the synagogue and school, thus obstructing the synagogues’ members in the enjoyment of the free exercise of their religious beliefs.
The FBI investigated the case with the assistance of the Houston Police Department. Trial Attorneys Nicholas Murphy and Saeed Mody of the Civil Rights Division and Assistant U.S. Attorneys Ruben Perez and Joe Magliolo are prosecuting in cooperation with the Harris County District Attorney’s Office.
Houston Man Sentenced for Threatening to Bomb SynagogueRead the Press Release
HOUSTON - Dante Phearse, 33, was sentenced today by U.S. District Judge Kenneth M. Hoyt to serve 33 months in prison for calling in a bomb threat to Congregation Beth Israel, a synagogue in Houston. The announcement is being made jointly by the U.S. Attorney’s Office for the Southern District of Texas and the Department of Justice’s Civil Rights Division. Phearse was further ordered to pay $13,000 in restitution and will serve three years of supervised release following completion of his prison term.
On April 28, 2014, Phearse pleaded guilty to the civil rights violation of threatening to bomb a synagogue and to making a telephone bomb threat. As part of his plea, Phearse admitted that on April 30, 2013, he willfully obstructed members of Congregation Beth Israel from enjoying the free exercise of their religious beliefs by threat of force with an explosive device. Phearse also admitted to using an instrument of interstate commerce to communicate a threat to kill and injure people and to destroy a building by means of an explosive device.
As a result of Phearse’s threats, the school at Congregation Beth Israel was closed for a day and extra security was hired to guard the synagogue and school, thus obstructing the synagogues’ members in the enjoyment of the free exercise of their religious beliefs.
The FBI investigated the case with the assistance of the Houston Police Department. Assistant U.S. Attorneys Ruben Perez and Joe Magliolo and Trial Attorneys Nicholas Murphy and Saeed Mody of the Civil Rights Division are prosecuting in cooperation with the Harris County District Attorney’s Office.
Hinsdale Man Sentenced to 25 YearsRead the Press Release
For Child Exploitation Offense
CONCORD, NEW HAMPSHIRE – Benjamin Maes, 32, of Hinsdale, was sentenced to 25 years in prison on one count of sexual exploitation of children, announced United States Attorney John P. Kacavas.
The investigation began in November, 2012, when an FBI/Metropolitan D.C. Police Department task force received images of child pornography from an individual from Hinsdale, New Hampshire. Benjamin Maes had been communicating with an undercover agent on-line and had sent the agent sexually explicit images of children. He was arrested in December of 2012, pursuant to a federal arrest warrant issued in the District of Columbia.
Various electronic items belonging to Maes were seized pursuant to a search warrant and forensic examination of his cellular phones revealed numerous images of child pornography, including images of Maes engaged in sexually explicit conduct with a minor.
This case was prosecuted by Assistant United States Attorney Helen White Fitzgibbon.
The charge was the result of an investigation by the Federal Bureau of Investigation, the Washington D.C., Metropolitan Police Department, the Hinsdale Police Department and the New Hampshire Internet Crimes Against Children Task Force is being prosecuted under Project Safe Childhood, a nationwide initiative by the U.S. 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 (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Hazleton Man Charged with Drug Trafficking OffenseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced the filing of a criminal information in U.S. District Court in Scranton on June 27, 2014 charging Kelvin Martinez of Hazleton, Pennsylvania, with distributing heroin in Hazelton in 2012 and 2013.
United States Attorney Peter Smith stated that the charge is the result of an investigation conducted by the Federal Bureau of Investigation and the Pennsylvania State Police. Prosecution is assigned to Assistant United States Attorney John Gurganus.
The government also filed a plea agreement which is subject to approval by the Court.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is twenty years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Guilford Woman Admits Failing to Pay Taxes on Money Received During Gifting Tables Pyramid SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that NANCY DILLON, 69, of Guilford, pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to a federal tax charge related to her participation in an illegal pyramid scheme known as “Gifting Tables.”
According to court documents and statements made in court, a Gifting Table is configured as a four-level pyramid, with eight participants assigned to the bottom row, four participants assigned to the third row, two participants assigned to the second row, and one participant assigned to the top row. The top row participant is referred to as the “Dessert,” the two participants on the second row as “Entrees,” the four participants on the third row as “Soup and Salads,” and the eight participants on the bottom row as “Appetizers.” To join a Gifting Table, new participants were required to pay $5,000, typically cash, to the Dessert, that is, the participant occupying the top position on the pyramid. The $5,000 payment, which was fraudulently characterized as a gift, secured the new participant a position as an Appetizer on the bottom row. Participants progressed from the bottom row of the pyramid by recruiting additional people to join the Gifting Table. When eight new participants joined a Gifting Table, each having made a $5,000 “gift” to the person occupying the Dessert position at the top of the pyramid, the Dessert left the Gifting Table and kept the $40,000 paid by the eight new participants. That particular Gifting Table was then split, with the two participants occupying the Entree position on the second row moving to the top position (Dessert) of two new pyramids. The other incumbent members of the Gifting Table moved up a row on one of the two newly-formed pyramids, and the search for 16 new participants began. The success of the Gifting Tables depended on new participants joining and making the $5,000 “gift.”
In 2009, DILLON received $40,000 while participating in the Gifting Tables scheme. Even though she had been advised by an attorney that the money was taxable income and not a gift, she failed to pay federal income taxes on the money she received.
DILLON pleaded guilty to one count of willful failure to file a return, supply information or pay tax, a charge that carries a maximum term of imprisonment of one year and a fine of up to $25,000. Judge Thompson scheduled sentencing for September 24, 2014.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division and prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and Peter S. Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Griffin, GA. Tax Preparer Sentenced for Filing False Tax ReturnsRead the Press Release
ATLANTA - A federal judge has sentenced Buffy Drake to three years and nine months in prison for filing false tax returns that claimed over $2.5 million in bogus refunds.
“This defendant stole millions of dollars from American taxpayers through her criminal conduct. She is now going to federal prison as a result of her actions,” said United States Attorney Sally Quillian Yates.
“Return preparer fraud is like a contagious disease, it affects not only the preparer, but the individuals who have filed false information with Internal Revenue Service,” said Veronica F. Hyman-Pillot, Special Agent in Charge, IRS-Criminal Investigation. “Criminal Investigation is determined to stop these false tax refund schemes. It is our hope that this sentence will send a strong message that participation in refund fraud schemes does not pay and those who chose to participate will be prosecuted.”
According to United States Attorney Yates, the charges and other information presented in court: Drake operated a tax preparation business in Griffin named “Imagine That.” While operating “Imagine That,” Drake filed hundreds of false tax returns that claimed millions of dollars in fraudulent refunds. In total, from 2011 through 2012, Drake filed tax returns claiming in excess of $2,500,000 in fraudulent refunds. Drake retained a substantial portion of the proceeds from this scheme. In some instances, tax returns were filed without the permission of the individuals whose identities were used on the tax returns.
Drake, 43, of Griffin, Ga., was sentenced to three years and nine months in prison and three years of supervised release, and ordered to pay over $2.5 million in restitution. Drake pleaded guilty on March 5, 2014, to one count of wire fraud.
This case was investigated by Special Agents of the Internal Revenue Service‑Criminal Investigation with the assistance of the City of Griffin Police Department.
Assistant United States Attorney Thomas J. Krepp prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Newnan Division is http://www.justice.gov/usao/gan/.
Glendale Man Sentenced to 160 Months for Transportation of Minor with Intent to Engage in ProstitutionRead the Press Release
TUCSON, AZ – On June 26, 2014, Marques West, 30, of Glendale, AZ was sentenced by U.S. District Judge Cynthia K. Jorgenson to 160 months imprisonment followed by 5 years supervised release. West pleaded guilty on April 17, 2014, to one count of transportation of a minor with intent to engage in in prostitution.
Sometime between January 20, 2013, and January 29, 2013, West transported a minor female from El Paso, Texas, to Tucson, Arizona, with the intent that the minor female engage in commercial sex acts.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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigation in this case was conducted by the Tucson Police Department and the Federal Bureau of Investigation, Tucson. The prosecution was handled by Karen Rolley and Arturo Aguilar, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-13-01493
RELEASE NUMBER: 2014-037_WestFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Former President and Owner of Schuylkill Products Sentenced in Largest Disadvantaged Business Enterprise Fraud in Nation’s HistoryRead the Press Release
Joseph W. Nagle, 53, of Deerfield Beach, Florida and the former president of Schuylkill Products Inc., was sentenced in federal court in Harrisburg, Pennsylvania, today to 84 months imprisonment and ordered to pay fines totaling $27,600 for his role in a massive conspiracy to defraud the Disadvantage Enterprise (DBE) program, announced Peter J. Smith, the U.S. Attorney for the Middle District of Pennsylvania. Senior U.S. District Court Judge Sylvia H. Rambo directed that Nagle report to prison no later than September 29, 2014.
According to the U.S. Department of Transportation (USDOT), this scheme which lasted for over 15 years and involved over $136 million in government contracts in Pennsylvania, alone, is the largest reported Disadvantaged Business Enterprise (DBE) fraud in the nation’s history.
In April 2012, after a four-week jury trial, a federal jury found Nagle guilty on 26 charges in the indictment, including conspiracy to defraud the USDOT and commit wire and mail fraud, seven counts of wire fraud, six counts of mail fraud, conspiracy to commit money laundering and 11 counts of money laundering.
“Preventing and detecting DBE fraud are priorities for the Secretary of Transportation and the USDOT Office of Inspector General,” said Doug Shoemaker, OIG Regional Special Agent in Charge. “This sentencing of Joseph Nagle, in what is the largest reported DBE fraud case in USDOT history, sends the clear signal that severe penalties await those who would attempt to subvert USDOT laws and regulations. We will continue to work with the Secretary of Transportation, the Administrators of the Federal Highway and Transit Administrations, and our law enforcement and prosecutorial colleagues to expose and shut down DBE fraud schemes throughout Pennsylvania and the United States.”
"This case represents our continued commitment to protecting the American workplace by identifying and prosecuting criminals who violate the laws relating to public contracts. We will continue to work with our law enforcement partners to combat these types of crimes" stated John T. Spratley, Special Agent in Charge of the Philadelphia Office of Labor Racketeering and Fraud Investigations, Office of Inspector General, U.S. Department of Labor.
"The audacious, long-term scheme perpetrated by Mr. Nagle and his cohorts stole money from taxpayers, and opportunity from legitimate small-business owners," said FBI Special Agent in Charge Edward J. Hanko. "This case highlights the FBI's commitment to fighting DBE fraud, and seeing those responsible brought to justice."
Nagle was President, Chief Executive Officer and part- owner of Schuylkill Products Inc. (SPI) and its wholly-owned subsidiary CDS Engineers Inc. (CDS) until April 2009 when SPI was sold. SPI was based in Cressona, Pennsylvania, and manufactured concrete bridge beams used on highway construction projects in Pennsylvania and surrounding states. CDS was SPI’s erection division and installed SPI’s bridge beams as well as other suppliers products, on highways in Pennsylvania and surrounding states. Nagle was convicted of joining an on-going 15-year conspiracy to defraud USDOT, the Pennsylvania Department of Transportation (PennDOT) and the Southeastern Pennsylvania Transportation Authority (SEPTA) in connection with the federal government’s DBE program when he became President in April 2004.
USDOT provides billions of dollars a year to states and municipalities for the construction and maintenance of highways and mass transit systems on the condition that small businesses, owned and operated by disadvantaged individuals, receive a fair share of these federal funds. In Pennsylvania, PennDOT and SEPTA receive these funds and they require contractors to award a percentage of their subcontracts to eligible DBE’s.
The OIG Regional Special Agent in Charge Shoemaker cautioned prime contractors and subcontractors not to engage in fraudulent DBE activity and encouraged them to report any suspected DBE fraud to us at www.oig.dot.gov/hotline.
Nagle was convicted of participating in the scheme which ran from 1993 to 2008, in which he and other executives at SPI diverted over 300 PennDOT and SEPTA construction contracts worth $136 million to SPI and CDS that were reserved for DBE’s. Nagle and his co- conspirators executed the scheme by using a small Connecticut highway construction firm known as Marikina Construction Corporation as a front company to obtain these lucrative government contracts.
Marikina was owned by Romeo P. Cruz of West Haven, Connecticut, a naturalized American citizen born in the Philippines. Marikina was certified by PennDOT and SEPTA as a DBE. Although Marikina received the DBE contracts on paper, all the work was performed by SPI and CDS personnel, and SPI and CDS received all the profits. In exchange for letting SPI and CDS use its name, Marikina was paid a small fixed-fee, set by SPI.
The scheme was carried out for over 15 years because of the numerous fraudulent steps the co-conspirators took to conceal the scheme. SPI and CDS personnel routinely pretended to be Marikina employees by using Marikina business cards, email addresses, stationery, and signature stamps, as well as using magnetic placards and decals bearing the Marikina logo to cover up SPI and CDS logos on SPI and CDS vehicles.
Earlier this year, three former executives associated with SPI, CDS and Marikina were sentenced for their roles in the scheme and one executive is awaiting sentencing.
Romeo P. Cruz, the former owner of Marikina, was sentenced to 33 months’ imprisonment, must pay $119 million in restitution and serve two years’ supervised release.
Timothy G. Hubler, of Ashland, Pennsylvania, CDS’ former Vice-President in charge of field operations, was sentenced to 33 months’ imprisonment, pay $119 million in restitution and serve two years’ supervised release.
Dennis F. Campbell, of Orwigsburg, Pennsylvania, SPI’s former Vice-President in charge of sales and marketing was sentenced to 24 months’ imprisonment, $119 million in restitution and serve two years’ supervised release.
Ernest G. Fink, of Orwigsburg, Pennsylvania, SPI’s former Vice-President, Chief Operating Officer and part-owner is scheduled to be sentenced on July 14, 2014.
The investigation was conducted by the FBI, the U.S. Department of Transportation Inspector General’s Office, the U.S. Department of Labor Inspector General’s Office, and the Criminal Investigation Division of the IRS. Senior Litigation Counsel Bruce Brandler and Assistant United States Attorney Kim Douglas Daniel handled the prosecution.
Former Non-Indian Employee of the Jicarilla Apache Nation Sentenced to Probation for Embezzling Money from the TribeRead the Press Release
ALBUQUERQUE – Robert G. Wells, 63, of Albuquerque, N.M., was sentenced this morning to a five-year term of probation for embezzling money from an Indian tribal organization. Wells also was ordered to pay $214,594.13 in restitution to the Jicarilla Apache Nation, the victim of Wells’ criminal conduct.
Wells was arrested in Nov. 2013, on a three-count indictment charging him with embezzling an aggregate of $214,594.13 from the Jicarilla Apache Nation’s Utility Authority between July 2011 and Oct. 2011. At the time, Wells, a non-Indian, was employed by the Jicarilla Apache Nation as the comptroller for the tribe’s Utility Authority.
On Feb. 24, 2014, Wells pled guilty to all three counts of the indictment and admitted embezzling money from a Wells Fargo Bank account belonging to the Jicarilla Apache Nation’s Utility Authority through an unauthorized withdrawal and two unauthorized transfers. In his plea agreement, Wells admitted stealing money from the tribe’s bank account on the following three occasions: $500.00 in July 2011, $92,331 in August 2011, and $121,763 in Oct. 2011.
This case was investigated by the Albuquerque office of the FBI and the Jicarilla Apache Tribal Police Department and was prosecuted by Supervisory Assistant U.S. Attorney Glynette R. Carson McNabb.