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20 August 2014
North Ridgeville Woman Charged with Distributing MethamphetamineRead the Press Release
A federal grand jury returned a two-count indictment charging a North Ridgeville woman and an Arizona man with using the U.S. mail to distribute methamphetamine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Indicted are Robert Havers, 49, and Patricia Ann Quinn, 43.
On July 24, 2014, Havers mailed approximately one pound of methamphetamine in the U.S. Mail from Phoenix, Arizona, to Quinn in North Ridgeville, Ohio. On July 25, 2014, U.S. Postal Inspectors delivered the package, which Quinn accepted and opened, according to the indictment.
This case is being prosecuted by Assistant United States Attorney Margaret A. Sweeney following an investigation by the United States Postal Inspection Service.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ roles in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
New London Man Pleads Guilty to Cocaine ChargesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that EDGARDO CENTENO, 43, of New London, pleaded guilty yesterday in Hartford federal court to conspiring to distribute cocaine in southeastern Connecticut.
According to court documents and statements made in court, in early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut. The investigation revealed that certain members of the conspiracy coordinated the shipment of heroin, and sometimes cocaine, via human couriers from the Dominican Republic to the United States. Other members of the conspiracy obtained kilogram-quantities of cocaine in Puerto Rico and then mailed the drug to locations in and around New London where it was sold to distributors and customers. Narcotics were also obtained from sources in New York City and Rhode Island.
More than 100 individuals were charged with federal and state offenses as a result of this investigation.
According to statements made in court, CENTENO, who pleaded guilty to one count of conspiracy to possess with the intent to distribute cocaine, received quantities of cocaine from Juan Cheverez in deals arranged over their cellular telephones. Cheverez received kilogram-quantities of cocaine through the United States Mail via a source in Puerto Rico.
CENTENO is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on November 5, 2014, at which time he faces a maximum term of imprisonment of 20 years.
Cheverez pleaded guilty to conspiracy charges on March 19, 2014, and awaits sentencing.
This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal case is being prosecuted by Assistant U.S. Attorneys Alina P. Reynolds, Sarah P. Karwan and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Mobile County Man Sentenced to 51 Months After Guilty Plea to Possession of Firearm After Felony ConvictionRead the Press Release
The United States Attorney Kenyen Brown announces that Donterrio Evans, a 30 year old resident of Mobile, was sentenced today. Mr. Evans pled guilty on May 22, 2014, to possession of a .40 caliber Smith & Wesson pistol found in his possession after police arrested him on unrelated robbery charges. At that time, Mr. Evans had been convicted of Receiving Stolen Property. As a convicted felon, he was prohibited from possessing firearms.
Officers of the Mobile Police Department along with special agents of the Bureau of Alcohol, Tobacco Firearms and Explosives investigated the case and presented it to the U.S. Attorney's Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Mobile County Man Sentenced to 33 Months After Guilty Plea to Possession of Firearm After Felony ConvictionRead the Press Release
The United States Attorney Kenyen Brown announces that James R. Robinson, a 35 year old resident of Mobile, was sentenced today. Mr. Robinson pled guilty on May 15, 2014, to possession of a 9mm Smith & Wesson 9mm pistol found on his person after police stopped him to investigate his suspicious reaction to their presence. At that time, Mr. Robinson had been convicted of Unlawful Possession of a Controlled Substance. As a convicted felon, he was prohibited from possessing firearms.
Officers of the Mobile Police Department investigated the case and presented it to the U.S. Attorney's Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Missouri Man Sentenced for Failing to Register as A Sex OffenderRead the Press Release
Follow @SDILNewsDavid Lee Martin, 57, of St. Louis, Missouri, was sentenced on August 20, 2014, in federal district court, in East St. Louis, Illinois, on one count of Failure to Register as a Sex Offender, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Martin was sentenced to 24 months in federal prison, immediately after which Martin would be placed on a term of 5 years of supervised release. He was also fined $150 and ordered to pay a $100 special assessment. On July 21, 2012, the United States Marshals Service (USMS) received an anonymous Crime-Stoppers tip that Martin, who was wanted in Missouri for charges of child molestation and violating probation, was residing in Illinois. Martin knowingly failed to update his registration in Illinois as required by the Sex Offender Registration and Notification Act. Martin was apprehended by the United States Marshals on July 24, 2012.
This case was investigated by the USMS and prosecuted by Special Assistant United States Attorney Neal C. Hong.
Minnesota Man Found Guilty in Methamphetamine ConspiracyRead the Press Release
United States Attorney Brendan V. Johnson announced that Esteban Chavez-Cruz, age 51, of Heron Lake, Minnesota, was found guilty of Conspiracy to Distribute 500 Grams or More of Methamphetamine as a result of a federal jury trial in Sioux Falls, South Dakota. The trial began on August 12 and concluded on August 13, 2014.
The charge carries a mandatory minimum penalty of 10 years in custody and/or a $10 million fine, a mandatory minimum of 5 years of supervised release up to life, and a $100 special assessment to the Federal Crime Victims Fund.
Chavez-Cruz was indicted by a federal grand jury on February 4, 2014.
A search warrant was served on Chavez-Cruz’s Heron Lake residence on January 23, 2014. Approximately four pounds of crystal methamphetamine, approximately five pounds of marijuana, a stolen shotgun, other firearms and ammunition, and approximately $49,000 in cash were found in holes under the floorboards in the bedroom. Chavez-Cruz was selling methamphetamine to co-conspirators who sold it in South Dakota and elsewhere.
This case was investigated by the Minnesota Bureau of Criminal Apprehension, the Jackson County, Minnesota Sheriff’s Office, the South Dakota Division of Criminal Investigation, and the U.S. Drug Enforcement Administration. Assistant U.S. Attorneys John E. Haak and Jennifer D. Mammenga prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for November 3, 2014. The defendant was remanded to the custody of the U.S. Marshals Service.
Michigan Home Health Agency Owner Pleads Guilty to Participating in $22 Million Medicare Fraud SchemeRead the Press Release
A greater Detroit-area owner of three home health agencies pleaded guilty today for his role in a $22 million home health care fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office and Acting Special Agent in Charge Jarod Koopman of the Internal Revenue Service – Criminal Investigation (IRS-CI) made the announcement.
According to information contained in plea documents, Muhammad Aamir, 43, of Bloomfield Hills, Michigan, admitted that, beginning in 2008 and continuing through January 2013, he conspired with others to bill Medicare for home health care services that were not actually rendered, not medically necessary, and procured through paying illegal kickbacks.
Aamir admitted that he and his conspirators at three home health agencies – Prestige Home Health Services Inc. and Platinum Home Health Services Inc., both located in Troy, Michigan, and Empirical Home Health Care Inc., located in Farmington Hills, Michigan – paid kickbacks to patient recruiters to obtain identifying information of Medicare beneficiaries and then fraudulently billed Medicare. Aamir and others fabricated and falsified medical documents reflecting or supporting purported physical therapy and other services – including home health certifications and plans of care, therapy notes, evaluations, recertifications, discharges and other records – making it appear that the services had been provided and were medically necessary, when in fact they were not. The three home health care agencies then billed Medicare for those services.
Aamir admitted that he submitted or caused the submission of false claims to Medicare, which in turn caused Medicare to pay approximately $15,118,254. According to court records, the conspiracy resulted in the submission of fraudulent claims that caused Medicare to pay more than $22 million.
Aamir pleaded guilty before U.S. District Judge Bernard A. Friedman in the Eastern District of Michigan to one count of conspiracy to commit health care fraud and one count of filing a false or fraudulent tax statement. Sentencing has been scheduled for Jan. 13, 2015.
This case was investigated by the FBI, HHS-OIG, and IRS-CI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. This case is being prosecuted by Trial Attorneys Niall M. O’Donnell and James McDonald of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .Mentor Man Charged with Enticement and Failure to Register as Sex OffenderRead the Press Release
Larun E. Miller, 45, of Mentor, was charged with enticement and failure to register as a sex offender, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about May 28, 2014, through on or about June 2, 2014, in the Northern District of Ohio, Eastern Division, and elsewhere, Miller did knowingly use facilities and means of interstate and foreign commerce, that is, a cellular phone with Internet connectivity, to attempt to persuade, induce, entice and coerce an individual who had not attained the age of 18 years, that is, a 14-year-old girl to engage in illegal sexual activity with him.
The indictment also charges that from on or about October 1, 2013, through on or about June 3, 2014, in the Northern District of Ohio, Eastern Division, the defendant, Miller, a sex offender as defined for the purposes of the Sex Offender Registration and Notification Act, as a result of being convicted under Federal law, on October 28, 2005, of travel with intent to engage in illicit sexual conduct, in Case No. 5:05CR300, in the Northern District of Ohio, did knowingly fail to register and update registration as required by the Sex Offender Registration and Notification Act.
Lastly, the indictment charges that from on or about May 28, 2014, through on or about June 2, 2014, in the Northern District of Ohio, Eastern Division, and elsewhere, Miller, being required by federal law to register as a sex offender, committed a felony offense involving a minor under Title 18, United States Code, Section 2422(b), to wit: the felony offense charged in count one of the indictment.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique 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.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the United States Marshals Service and the Jefferson County (Colorado) District Attorney’s Office.
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.
Member of Home Invasion Robbery Crew Sentenced to 27 Years for Murdering Pregnant Woman During Botched RobberyRead the Press Release
Alejo Polanco was sentenced today to 27 years in prison to be followed by five years of supervised release by United States District Judge Raymond J. Dearie at the federal courthouse in Brooklyn. In August 2013, following a two-week trial, Polanco and co-defendant Emilino Vasquez were convicted of all counts against them, including participating in a ten-year conspiracy to commit armed home invasion robberies and to traffic in heroin, cocaine, and marijuana. In addition, Polanco and Vasquez were convicted of the June 2001 murder of Liliana Colmenares in Manhattan. On June 20, 2014, Vasquez was sentenced to 22 years’ incarceration for his role in the offense.
The sentences were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and James J. Hunt, Acting Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division.
“Polanco, Vasquez, and their associates thought they had gotten away with murder,” stated United States Attorney Lynch. “For years, these defendants committed brazen armed robberies that terrorized our city. Thanks to the diligent efforts of the DEA’s experienced investigators, those responsible for this brutal murder have been brought to justice.”
Polanco and Vasquez were members of a violent robbery crew responsible for numerous robberies of narcotics traffickers in the New York metropolitan area. The crew often received inside information regarding the location of narcotics and money stashes, and then performed extensive surveillance of their intended targets before robbing them at gunpoint. The crew targeted narcotics traffickers because they were unlikely to call the police or cooperate with law enforcement investigations. Altogether, Polanco, Vasquez, and their co-conspirators stole hundreds of kilograms of cocaine, heroin, and marijuana, as well as hundreds of thousands of dollars in drug proceeds.
In the spring of 2001, the crew received information from a member of an international drug trafficking organization that there was a large quantity of heroin stored in an apartment located on Fort Washington Avenue in upper Manhattan. For months, the conspirators performed surveillance of the apartment and its occupants. On June 10, 2001, six members of the crew, including Polanco and Vasquez, assembled in the vicinity of the apartment. Communicating with each other via radio, they watched as the male occupant of the apartment briefly left the apartment to walk to a restaurant. When he returned, three members of the crew, including Polanco, each of whom was armed with a handgun, attempted to force their way into the apartment. A struggled ensued, and several shots were fired. Liliana Colmenares, a Colombian national who resided in the apartment and was unarmed, approached Polanco and briefly struggled with him. Polanco then shot Colmenares in the face, causing her to bleed to death within minutes. Colmenares was approximately five months pregnant at the time of her death.
After the shooting, the conspirators fled the scene in two vehicles, one of which was driven by Vasquez. The murder remained unsolved for several years until agents and investigators with the Drug Enforcement Administration’s New York Drug Enforcement Task Force identified several suspects and ultimately solved the case.
Ms. Lynch extended her grateful appreciation to the DEA and the New York State Police for their extraordinary assistance in this lengthy investigation.
The government’s case was prosecuted by Assistant United States Attorneys
Daniel Silver, Soumya Dayananda, and Nathan Reilly.
The Defendants:
ALEJO POLANCO
Age: 47
EMILINO VASQUEZ
Age: 59
E.D.N.Y. Docket No. 08-CR-65
Manhattan U.S. Attorney Charges 19 Members of Bronx Gang and Their Narcotics Supplier with Narcotics Trafficking and the Gang’S Former Leader with A Firearms OffenseRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and William J. Bratton, the Commissioner of the New York City Police Department (“NYPD”), announced charges against 19 members of a criminal organization known as the “River Park Towers Young Gunnerz” (“RPT YGz”), which operates out of the River Park Towers housing complex, located on Richman Plaza in the vicinity of Sedgwick Avenue in the Bronx, New York. The RPT YGz members, along with their primary narcotics supplier, are all charged with narcotics trafficking. The gang’s former leader, TYRONE FELDER, is also charged with a firearms offense. These charges follow those announced on August 15 and 16, 2014, against RPT YGz members TYRONE FELDER, JAMAL WALKER, and TOMMY SMALLS, for the carjacking and murder of a livery cab driver in the Bronx.
13 of the defendants, including the three who are currently in federal custody on the murder-related charges, will be presented in Manhattan federal court this afternoon. Two of the defendants are currently in state custody on unrelated state charges and will be presented upon their arrival to the Southern District of New York. Five defendants are still at large.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, the defendants were associated with a violent gang that claimed an entire housing complex as its territory and held residents captive to their drug dealing and violent acts. Thanks to the outstanding work of the NYPD, the residents of River Park Towers are safer today, and these 20 suspected gang members and drug dealers are being brought to justice.”
NYPD Commissioner William J. Bratton said: “These individuals conducted their illegal operation inside of the River Park Towers development, causing alarm to the law abiding residents that live in the area. Thanks to the investigators and prosecutors who built and investigated this case, the message is clear, the NYPD will continue to target gangs who threaten the safety and well-being of all New Yorkers.”
According to the Indictment unsealed today in Manhattan federal court:
From at least 2010 through August 2014, River Park Towers has been plagued by drug dealing and violence, driven in large part by the activities of the RPT YGz. During that time period, the RPT YGz gang has distributed crack cocaine and marijuana, among other drugs, in and around the RPT complex. RPT YGz members have also engaged in robberies and various other acts of violence to protect their territory, assert their identity, and further their illegal activities, including threatening, intimidating and assaulting the security guards who are assigned to protect the River Park Towers complex and who have tried to prevent the RPT YGz members from selling drugs in the area.
TYRONE FELDER was the leader of RPT YGz until his arrest on August 15, 2014. Members of RPT YGz would pay money to FELDER in exchange for permission to sell drugs in and around the River Park Towers complex. FREDERICK ALLEN was recently designated the new leader of the RPT YGz by TYRONE FELDER following FELDER’s arrest.
NICOMEDES FRASQUERI serves as the primary supplier of narcotics for the RPT YGz, operating out of his own apartment within the River Park Towers complex. FRASQUERI has sold quantities of crack cocaine to members of the RPT YGz, among others, for distribution to customers.
TYRONE FELDER, JAMAL WALKER, NICOMEDES FRASQUERI, FREDERICK ALLEN, ANGEL AMERZQUITO, KEVIN ANTHONY, KELVIN DOUGLAS, DERRICK FELDER, ANTHONY GIVENS, KERI GIVENS, BRIAN HALL, ELIJAH HUBBARD, TERRELL JOHNSON, TYRONE MARGWOOD, SHANEQUA MASCALL, LAMONT OBEY, TOMMY SMALLS, GEORGE STONE, JEROME THOMAS, and JOHNA THOMAS are all charged with conspiring to distribute and to possess with intent to distribute crack cocaine and marijuana, a charge that carries a mandatory minimum sentence of 10 years in prison and a maximum penalty of life in prison. In addition, TYRONE FELDER is charged with one count of brandishing a firearm in relation to a narcotics and racketeering conspiracy, which carries a mandatory minimum sentence of seven years in prison, which must run consecutive to any other sentence, and a maximum penalty of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
A chart containing the names, ages, and residences for the defendants is attached to this release.
The case is assigned to U.S. District Judge Colleen McMahon.
Mr. Bharara praised the outstanding investigative work of the NYPD Bronx Narcotics Division – Major Case Unit. He added that the investigation is continuing.
The Office’s Narcotics Unit is overseeing the case. Assistant U.S. Attorneys Amy Garzon, Andrew DeFilippis, and Patrick Egan are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Tyrone Felder et al.
Manager of Local Housing Complex & Two Associates Plead Guilty to Identity Theft ChargesRead the Press Release
St. Louis, MO – MARSHA HARRINGTON,CALVIN SHAW and LARRY CORNER, all of the St. Louis area, have entered guilty pleas to one felony count of conspiracy to commit identity theft and one felony count of identity theft. Corner appeared in court Tuesday afternoon, Harrington and Shaw entered their pleas in July. All defendants appeared before United States District Judge Catherine D. Perry. Sentencing for Corner has been set for November 12, 2014. Harrington and Shaw will be sentenced in October.
According to court documents, Marsha Harrington used her employment as manager of the Clinton-Peabody Housing Complex to acquire social security numbers and other personal information from tenants, and used this information to file false tax returns. Co-defendants Calvin Shaw and Larry Corner also provided identity information to Harrington. After Harrington filed the false tax returns, she kept the tax refund. If the tax return used a stolen name and social security number provided by Shaw and/or Corner, she shared those funds with them respectively.
"Misusing her position of trust as Manager of the Clinton-Peabody Housing Complex, Ms. Harrington stole the identities of people and filed false tax returns in their names," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. "Let me be clear that we will continue to pursue the criminals who seek to willfully defraud the United States Treasury and blatantly disregard the victims of their schemes."
Conspiracy to commit identity theft carries a maximum penalty of five years in prison and/or fines up to $250,000 and identity theft carries a maximum of 15 years in prison and or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by IRS Criminal Investigation. Assistant United States Attorney Stephen Casey is handling the case for the U.S. Attorney's Office.
Man Sentenced to 28 Months in Federal Prison and Ordered to Pay More Than $350,000 in Restitution in EPA Fraud CaseRead the Press Release
DALLAS — Michael G. Johnson, 46, formerly of Fort Worth, Texas, was sentenced late yesterday, by U.S. District Judge Barbara M. G. Lynn, to 28 months in federal prison and ordered to pay $354,529 in restitution, following his guilty plea in January 2014 to felony offenses stemming from an investigation by the Environmental Protection Agency (EPA) into violations of the Clean Air Act. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, Johnson pleaded guilty to one count of wire fraud and one count of making false statements under the Clean Air Act. He has been in federal custody since his arrest in July 2013 in the Billings, Montana, area.
From 2007 through 2009, Johnson owned and operated System Launch Associates from an apartment in Fort Worth. After 2009, Johnson conducted business from Austin, Texas; Dallas, Texas; Sterling Heights, Michigan; and Miles City, Montana.
Pursuant to the Clean Air Act, manufacturers are prohibited from selling a vehicle or engine that is subject to emission standards unless the vehicle or engine is covered by an EPA-issued Certificate of Conformity. System Launch purported to arrange testing of new vehicles and new vehicle engines for U.S. distributors of foreign-made vehicles. System Launch itself, however, did not perform the testing. In fact, the testing was never done, and Johnson fabricated the testing data.
Johnson instructed his clients to have the vehicles delivered to him or to a test lab he chose, instructing them to pay half of the testing/application fee to him upfront and the remainder when the testing was completed. After Johnson submitted the completed Certificate of Conformity application to the EPA, he provided a copy of the fraudulent vehicle test data to his clients.
From August 2009 through June 2012, Johnson submitted multiple Certificates of Conformity applications containing fraudulent vehicle test data to the EPA and delivered that data to more than a dozen clients. The applications Johnson submitted were approved, and the EPA issued Certificates of Conformity based on fraudulent data he provided.
“False reports or incorrect data undercut EPA’s commitment to protect clean air for all Americans,” said Vernon Jackson, Acting Special Agent in Charge of EPA’s criminal enforcement program in Texas. “EPA and its law enforcement partners will actively pursue those who undermine the integrity of programs designed to protect public health and the environment. This sentence sends a clear message that violators whose actions place the public at risk will be prosecuted.”
“I commend the excellent investigative work of the EPA and the Texas Commission on Environmental Quality- Environmental Crimes Unit in unravelling Mr. Johnson’s scheme,” said U.S. Attorney Saldaña. “The enforcement of our nation’s environmental laws is a vital part of our work here.”
Assistant U.S. Attorney Errin Martin was in charge of the prosecution.
Man Indicted for Assault, Threats and Starting A Fire at Gettysburg National ParkRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Gary L. DuRocher, 41, formerly a resident of Maryland, was charged in an Indictment by a federal grand jury in Harrisburg. On August 11, 2014, DuRocher was charged in a Criminal Complaint, arraigned, and detained pending a preliminary hearing. The charges stem from an incident at the Gettysburg National Military Park on Friday night, August 8, 2014. According to United States Attorney Peter Smith, the Indictment charges the same three offenses as the Complaint: DuRocher allegedly committed an assault within the jurisdiction of the United States; he also is charged with malicious mischief for allegedly starting a fire that damaged property in the Park; and allegedly made a threat of harm to another person in interstate commerce. If convicted of all offenses, DuRocher faces 11 years in prison and fines of more than $500,000.
At his first appearance in federal court, DuRocher was ordered detained pending a preliminary hearing. With the filing of the Indictment, there will no longer be a preliminary hearing because the grand jury’s finding of probable cause to believe the crimes alleged were committed takes the place of the probable cause finding made at a preliminary hearing. U.S. Magistrate Judge Susan E. Schwab is expected to arraign DuRocher on the Indictment tomorrow, Thursday, August 21, at 9:30 a.m.
The case was investigated by the National Park Service with the assistance of Cumberland Township, Gettysburg Borough, McSherrystown Borough, Pennsylvania State Police and Maryland State Police, as well as fire and emergency response personnel from around the Gettysburg area. The case is being prosecuted by Assistant United States Attorney James T. Clancy.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Logan County Man Sentenced for Access Device FraudRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced that Joseph Hurley, 28, of Man, West Virginia was sentenced today to five years’ probation, with five months to be served in community confinement for the federal offense of Access Device Fraud. Mr. Hurley was ordered to pay restitution in the amount of $5,766 dollars, the full amount of the loss resulting from the fraud.
On January 26,2013, Hurley took the names and social security numbers of two relatives with whom he was living. Hurley applied online to Citibank for credit cards (access devices) assuming the identities of his relatives. Hurley received the first credit card in the mail at the home where he was staying in Man, West Virginia. Hurley activated the card and fraudulently charged over five thousand dollars between February 2,2013 and March 15, 2013. He attempted to use the second card he received in the mail, but was blocked by the Citibank Fraud Detection Unit because of suspected fraudulent activity.
The United States Secret Service and the United States Postal Inspection Service conducted the investigation. Assistant United States Attorney Erik S. Goes handled the prosecution.
Little Eagle Woman Sentenced for Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a Little Eagle, South Dakota, woman convicted of Assault with a Dangerous Weapon was sentenced on August 4, 2014, by U.S. District Judge Charles B. Kornmann.
Verinda Red Legs, age 30, was sentenced to 18 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Red Legs was indicted by a federal grand jury on November 14, 2013. She pled guilty on May 12, 2014.
The conviction stems from an incident on October 18, 2013, when following a night of drinking, Red Legs got into an argument with her husband, the victim, at their home. Red Legs chased the victim around the house and stabbed him in the abdomen. Red Legs then fled the area and law enforcement was called.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Red Legs was immediately turned over to the custody of the U.S. Marshals Service.
Little Eagle Man Sentenced for Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Little Eagle, South Dakota, man convicted of Domestic Assault by an Habitual Offender was sentenced on August 4, 2014, by U.S. District Judge Charles B. Kornmann.
Gary Little Bird, Jr., age 35, was sentenced to 30 months of custody, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Little Bird was indicted by a federal grand jury on March 11, 2014. He pled guilty to the Indictment on May 19, 2014.
The conviction stems from an incident on February 13, 2014, when Little Bird called the Bureau of Indian Affairs to let them know he had assaulted his girlfriend. An officer was dispatched to their home, where she noticed swelling and cuts to the victim’s lips, as well as dried blood around her nose and mouth. At the time of this incident, Little Bird had four prior convictions in Standing Rock Sioux Tribal Court, which would have been, if subject to federal jurisdiction, assaults against a spouse or intimate partner.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Little Bird was immediately turned over to the custody of the U.S. Marshals Service.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
On August 20, 2014, Joshua Dain Pearce, 30, of Lincoln, was sentenced to 130 months in prison for conspiracy to distribute and possess with the intent to distribute methamphetamine. Following the prison term, Pearce will serve four years on supervised release.
Information provided to law enforcement indicated that between December of 2011 and August of 2013, Pearce was involved in the distribution of at least 500 grams (approximately 18 ounces) of methamphetamine in the Lincoln area. Confidential informants and an undercover officer made three purchases of methamphetamine from Pearce in late 2012 and the spring of 2013 for a total of approximately ¼ ounce of methamphetamine.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Las Vegas Woman Sentenced for Meth DistributionRead the Press Release
BOISE – Sadith Chavez-Perez, 23, of Las Vegas, Nevada, was sentenced today to 71 months for conspiracy to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. United States District Judge Dee V. Benson, visiting from the District of Utah, also ordered Chavez-Perez to serve five years of supervised release following her prison term. Chavez-Perez pleaded guilty on May 20, 2014. She is subject to deportation upon completion of her sentence.
According to the plea agreement, on March 27, 2013, Chavez-Perez met with an undercover officer at a parking lot in Meridian, Idaho. At the meeting Chavez-Perez discussed future drug transactions with the undercover officer. On April 11, 2013, Chavez-Perez made arrangements with the undercover officer to deliver five ounces of methamphetamine to the undercover officer. The methamphetamine was delivered to the undercover officer by a co-defendant later that day. Chavez-Perez subsequently arranged for another delivery of two pounds of methamphetamine to the undercover officer on or about May 15, 2013. While enroute to this meeting, Chavez-Perez was stopped by law enforcement in Ely, Nevada. In the vehicle officers found 1,321 grams of actual methamphetamine.
The case was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration (DEA), in conjunction with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Meridian Police Department, Ada County Sheriff’s Office, the Nampa Police Department, and the White Pine County, Nevada Sheriff’s Office. Other federal agencies participating in the OCDETF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Internal Revenue Service-Criminal Investigation, Federal Bureau of Investigation (FBI), and U.S. Marshals Service.
The OCDETF program is a federal multi agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Lafayette Company Fined for Defrauding USDARead the Press Release
OAKLAND – Z.A.S. International, Inc. was sentenced yesterday to an $18,000 fine and ordered to pay the U.S. Department of Agriculture $17,985.34 in restitution for theft of government funds, announced United States Attorney Melinda Haag and Special Agent in Charge Lori Chan, USDA Office of Inspector General, Investigations.
Z.A.S. International pleaded guilty on Aug. 12, 2014, to one count of theft of government funds. According to the plea agreement, Z.A.S. admitted that, between 2009 and 2011, it defrauded the USDA of $17,985.34 by inflating travel costs that were reimbursed by the USDA. According to court documents, Z.A.S., based in Lafayette, Calif., is in the business of trading and marketing food products internationally. It participated in the USDA’s Market Access Program, which assists small businesses and cooperatives with marketing and promoting American agricultural goods and commodities in foreign markets, including through reimbursement of travel costs for international trade conferences. Z.A.S. defrauded the government by purchasing high-priced airline tickets for travel to trade conferences, requesting refunds of those tickets, and subsequently purchasing significantly lower-fare tickets that its employees actually used for travel. Z.A.S., however, applied for and received reimbursement for the higher-fare tickets.
Z.A.S. was charged in a criminal Information on Aug. 12, 2014, and pleaded guilty that same day to violating Title 18, United States Code Section 641, a Class A misdemeanor. The sentence today was handed down by the Honorable Kandis A. Westmore, United States Magistrate Court Judge, who fined the defendant $18,000, and also ordered it to pay $17,985.34 in restitution and a special assessment of $125. In sentencing Z.A.S., the Court stressed the need to deter such conduct by other participants in government programs, but noted the company’s full cooperation with the government’s investigation. Z.A.S. International indicated that it would pay the fine, restitution, and special assessment today.
Assistant U.S. Attorney Andrew S. Huang prosecuted this case with the assistance of Vanessa Quant. The prosecution is the result of an investigation by the United States Department of Agriculture, Office of the Inspector General, and is believed to be the first prosecution in the nation of a Market Access Program participant.
(Z.A.S. information )
Justice Department Sues to Stop South Florida Tax Return Preparer Engaged in Fraud and Earned Income Credit SchemesRead the Press Release
The United States has asked a federal court in Miami to permanently bar a South Florida man and his two Miami businesses, Ebenezer Tax Services Inc. and Primo Tax Service Inc., from preparing federal income tax returns for others, the Justice Department announced today. He is alleged to have defrauded the government out of more than $20 million.
Ernice Joseph, of Broward County, Florida, and his businesses are alleged to have prepared federal income tax returns that unlawfully understate income tax liabilities and overstate refunds through a variety of schemes. The complaint alleges that Joseph and his businesses prepared returns that unlawfully claim the Earned Income Tax Credit by reporting fictitious businesses or business income on clients’ Schedule C – Profit or Loss From Business. Joseph and his businesses prepare returns that claim education and other credits to which the taxpayers are not entitled in order to overstate their refunds. According to the complaint, the Internal Revenue Service (IRS) examined 76 returns prepared by Joseph and/or Ebenezer Tax Services and found that 74 contained a deficiency. The complaint alleges that, altogether, Joseph and Ebenezer Tax Service’s activities may have caused more than $20 million in loss to the U.S. Treasury. In addition, the complaint alleges that the revenue lost from Primo Tax Service’s activities could exceed $25 million.
Return-preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2014 . The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of fraudulent tax preparers. Information about these cases is available on the Justice Department website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Related Materials:
United States v. Ernice Joseph, et al.
Complaint for Permanent InjunctionJustice Department Reaches Agreement with the City of Baltimore to Prevent Disability DiscriminationRead the Press Release
The Justice Department today announced that it has reached an agreement with the city of Baltimore, Maryland, to end hiring practices that discriminate against people with disabilities. The agreement, filed as a consent decree along with a complaint in the U.S. District Court for the District of Maryland, resolves allegations by the department that the city engaged in a pattern or practice of discrimination under the Americans with Disabilities Act (ADA). Title I of the ADA prohibits employers from discriminating against individuals on the basis of disability in various aspects of employment, including hiring.
The department alleges that the city required job applicants, including an individual complainant, to submit to a medical examination and answer disability-related inquiries before the city made conditional offers of employment. Under the ADA, employers may not require applicants to submit to medical exams or answer disability-related inquiries before making conditional offers of employment. The department also alleges that the city refused to hire the complainant for a fire dispatcher position because of her disability, even though she was already working successfully as a dispatcher elsewhere and required no accommodations.
The consent decree must be approved by the court, and requires the city to:
· pay $65,000 to the complainant in compensatory damages;
· adopt new policies and procedures regarding the administration of pre-employment medical examinations and inquiries;
· provide training on the ADA to all employees who participate in making personnel decisions related to pre-employment medical examinations and inquiries;
· ensure that the city’s contract with any medical examiner provides that the examiner is required to comply with the ADA in conducting medical examinations and certify that it has reviewed ADA training materials;
· provide periodic reports to the department on compliance; and
· designate an employee to address ADA compliance matters.
“The Justice Department will not tolerate discriminatory, outdated stereotypes that prevent individuals with disabilities from being hired for positions for which they are qualified,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division.
Those interested in finding out more about the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Jury Convicts Independence Woman of Firearms-related ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., woman was convicted in federal court today for her role in a conspiracy to illegally make firearms available to her boyfriend, a convicted felon.
Candice Loyd, 29, of Independence, was found guilty of the charges contained in a Sept. 25, 2013, federal indictment. Loyd was convicted of one count of conspiracy and two counts of aiding and abetting a felon to possess a firearm.
Evidence introduced during the trial indicated that the purpose of the conspiracy was for Loyd to obtain firearms for her live-in boyfriend and the father of two of her children, Joshua Stamps, because he was a convicted felon who could not legally purchase firearms for himself.
In a separate and unrelated case, Stamps pleaded guilty on June 12, 2014, to leading a $1.2 million arson and insurance fraud conspiracy and to using fire to commit a federal crime (mail fraud). Stamps and his co-conspirators bought, over-insured and burned five houses, all in Kansas City, Mo. The total actual loss to insurance companies in the scheme was $434,938, while the total intended loss was $1,196,840. Stamps, who has not yet been sentenced, is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to 25 years in federal prison without parole, and must pay a money judgment of $434,938.
Stamps was originally charged as a co-defendant with Loyd in this separate indictment. However, under the terms of his plea agreement in the arson case, the charges against Stamps in this indictment will be dismissed.
When Kansas City, Mo., police officers executed a search warrant at Loyd’s residence on April 9, 2013, she told officers that firearms were kept in a safe in the children’s bedroom. Loyd initially claimed to be the owner of the two firearms that were found in the safe, a Taurus 9mm pistol (that she purchased in 2008) and a Ruger .40-caliber pistol. Loyd could not give a combination to the safe, and eventually admitted to police that Stamps had access to the safe and the combination to the safe. When officers forced the safe open, they recovered the two firearms, ammunition and documents belonging to both Loyd and Stamps.
Under federal statutes, Loyd is subject to a sentence of up to 25 years in federal prison without parole, plus a fine up to $750,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about an hour before returning the guilty verdict to U.S. District Judge Dean Whipple, ending a trial that began Tuesday, Aug. 19, 2014.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the Kansas City, Mo., Police Deparment.Inmate Charged with Possessing Cell Phone in PrisonRead the Press Release
ERIE, Pa. - An inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania, has been indicted by a federal grand jury in Erie on a charge of possession of contraband in prison, United States Attorney David J. Hickton announced today.
The one-count indictment named Jose I. Aquino, 31, as the sole defendant.
According to the indictment presented to the court, on or about June 14, 2014, Aquino was in possession of contraband, namely a cell phone.
The law provides for a maximum total sentence of one year in prison, a fine of $100,000, 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 United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
Officers of the McKean Federal Correctional Institution conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Inmate at McKean Indicted for Possessing Contraband in PrisonRead the Press Release
ERIE, Pa. - An inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania, has been indicted by a federal grand jury in Erie on a charge of possession of contraband in prison, United States Attorney David J. Hickton announced today.
The one-count indictment named Keith Hightower, 29, as the sole defendant.
According to the indictment presented to the court, on or about May 9, 2014, Hightower was in possession of contraband, namely a weapon.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
Officers of the McKean Federal Correctional Institution conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Ostby in Billings on August 20, 2014, and entering pleas of Not Guilty were:
PATRICIA ANN WEBB, a 56-year-old resident of Columbus, appeared on charges of wire fraud and filing false tax returns. If convicted of the most serious charges contained in the indictment, WEBB faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Internal Revenue Service and the Federal Bureau of Investigation. PACER Case Reference: 14-75
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Indictment: Kansas Man Created False Identities in Scheme to Re-sell DVDs and Blue-ray MoviesRead the Press Release
WICHITA, KAN. – A Derby, Kan., man has been indicted on federal charges of creating dozens of false identities in order to qualify for discounts on the purchase of DVD and Blue-ray movies by joining the Disney Movie Club and Columbia House DVD Club and then re-selling the movies, U.S. Attorney Barry Grissom said today.
Harvey C. Self, 45, Derby, Kan., is charged with nine counts of mail fraud, one count of money laundering and two counts of tax fraud. The indictment alleges Self resold DVDs and Blue-ray movies on eBay and Amazon and collected payments using PayPal.
The indictment alleges the U.S. Postal Inspection Service has identified 28 different mailing addresses Self created at post offices or commercial carrier boxes in Derby, Kechi, Andover, Haysville, Peck, Benton, Winfield, Valley Center, Udall, Oxford, Clearwater, Mulvane, Wichita, Augusta and Goddard. The list of false names he is alleged to have used incudes Michael Wittman, Jamie Davis, Stephanie Vogel, Jossalyn Hanna, Phil Scott, Scott Philips, Greg Clark, Joe Green, Jimmy Jackson, John Foster, Will Enos, Kevin Griffin, Travis Powell, Jennifer Lewis, Kami Anderson, Savannah Clayton and Jessie Hannaself.
The indictment alleges that investigators seized 2,833 DVDs and Blu-ray discs when they served a search warrant at Self’s home in Derby.
If convicted, he faces a maximum penalty of 20 years and a fine up to $250,000 on each count of mail fraud, a maximum penalty of 20 years and a fine up to $500,000 on the money laundering count and a maximum penalty of three years and a fine up to $100,000 on each tax fraud count. The FBI, the U.S. Postal Inspection Service, the Defense Criminal Investigative Service, Homeland Security Investigations and the Internal Revenue Service investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
OTHER INDICTMENTS
Chrystal M. Scherbarth, 30, Altoona, Kan., the former city clerk of the City of Altoona, is charged with three counts of bank fraud. The crimes are alleged to have occurred from June 2011 to November 2013 in Altoona.
The indictment alleges Scherbarth used her access to the city payroll system to embezzle money from the city. The indictment alleges she overpaid herself by raising her own salary, issuing unauthorized checks to herself and paying herself for vacation and sick leave she had not earned. The indictment also alleges the City of Altoona identified more than $36,000 worth of unauthorized charges on a credit card used by Scherbarth.
If convicted, she faces a maximum penalty of 30 years in federal prison and a fine up to $1 million. The Kansas Bureau of Investigation and the FBI investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
Melchor Ramirez-Romero, 39, a citizen of Mexico who has been living in Liberal, Kan., is charged with one count of unlawfully re-entering the United States after being deported. He was found July 31, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Auner Gumercindo Vail-Lucas, 30, a citizen of Guatemala, is charged with unlawfully re-entering the United States after being deported. He was found Aug. 7, 2014, in Allen County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Teresa Magna, 51, Spring Valley, Calif., is charged with one count of distributing methamphetamine and one count of interstate travel in furtherance of drug trafficking. The crime is alleged to have occurred Aug. 6, 2014, in Russell County, Kan
If convicted, she faces a penalty of not less than five years and not more than 40 years and a fine up to $5 million on the distribution charge, and a maximum penalty of five years and a fine up to $250,000 on the other count. The Drug Enforcement Administration investigated. Assistant U.S. Attorney David Lind is prosecuting.
Brandi Meadows, 31, Oklahoma City, Okla., is charged with one count of possession with intent to distribute methamphetamine, and one count of interstate travel in furtherance of drug trafficking. The crime is alleged to have occurred Aug. 11, 2014, in Sedgwick County, Kan.
If convicted, she faces a penalty of not less than 10 years and a fine up to $4 million on the possession count and a maximum penalty of five years and a fine up to $250,000 on the other count. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Crystal Zoe Amarillas-Norzagaray, 23, Tuscon, Ariz., and Pilar Angel Leon-Beltran, 35, Tuscon, Ariz., are charged in a superseding indictment with one count of conspiracy to distribute 103 kilograms of marijuana and one count of possession with intent to distribute 103 kilograms of marijuana. In addition, Leon-Beltran is charged with one count of aggravated illegal re-entry and one count of interstate travel in furtherance of drug trafficking. In addition, Amarillas-Norzagaray is charged with one count of interstate travel in furtherance of drug trafficking. The crimes are alleged to have occurred Dec. 30, 2013, in Ellis County, Kan.
Upon convictions, the crimes carry the following penalties: Conspiracy, possession with intent to distribute: A maximum penalty of 20 years and a fine up to $1 million.
Aggravated re-entry: A maximum penalty of 20 years and a fine up to $250,000.
Interstate travel in furtherance of drug trafficking: A maximum penalty of five years and a fine up to $250,000.The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Hector Manuel Briceno, 25, Paramount, Calif., is charged with one count of possession with intent to distribute methamphetamine and one count of interstate travel in furtherance of drug trafficking. The crimes are alleged to have occurred Aug. 17, 2014, in Sherman County, Kan.
If convicted, he faces a penalty of not less than 10 years and fine up to $4 million on the possession charge, and a maximum penalty of 5 years and a fine up to $250,000 on the other count. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Michelle Jacobs is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment Charges Brothers, Former Operators of Peoria Service Station, with $6.1 Million Tax FraudRead the Press Release
Mail Fraud, Filing False Tax Returns, Benefits Fraud,
and Bank Fraud Also ChargedPeoria, Ill. – A federal grand jury today charged two brothers who formerly owned and operated a Fast Stop service station in Peoria, Ill., with conspiracy to commit tax fraud and mail fraud, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. Shaher M. Mizyed, 50, of Naperville, Ill., and Mohammad M. Mizyed, 46, of the 2800 block of West Playden, Peoria, Ill., are both charged with conspiracy to commit tax fraud resulting from failure to report to the IRS approximately $6.1 million in gross receipts received and conspiracy to commit mail fraud related to approximately $200,000 in medical and other benefits fraudulently obtained from the state of Illinois.
According to the indictment, at various times during the alleged conspiracy, from 2006 to 2011, one or the other of the brothers was identified as the owner of Tira Oil LLC, which operated the Fast Stop gas station and convenience store located at 3606 N. Prospect Road in Peoria. The indictment alleges that on a daily basis one of the brothers opened the business, and reviewed and recorded the previous day’s sales receipts. To divert corporate receipts to their own use, the indictment alleges that not all the cash generated from the business’s operation was deposited into Tira Oil’s bank account. The two allegedly split the remaining cash for personal use as well as to pay some business expenses. Further, to conceal the scheme, false information was reported to the accountant who prepared the tax returns for Tira Oil. The indictment alleges that Tira Oil owes approximately $171,000 in corporate income taxes resulting from failure to report the additional gross receipts to the IRS
The men are charged with conspiracy to commit mail fraud related to allegations that from 2003 to December 2013, members of the conspiracy concealed income and provided false information to the Illinois Department of Human Services to obtain approximately $200,000 in medical and other benefits. To further the conspiracy, false information and forms were submitted to DHS that reported hours worked and hourly wages for Shaher and Mohammad in amounts ranging from $225.00 per week, $400.00 – 450.00 every two weeks, and gross monthly income of $800.00.
Shaher is charged with four counts of mail fraud related to submission of Illinois Sales and Use Tax Returns to the state of Illinois that allegedly substantially under-reported the amount of gas and other goods sold at Tira Oil. According to the indictment, in April 2010, during an investigation by the Illinois Department of Revenue, revenue agents served Shaher with a formal demand for production of books and records; despite the formal demand, Shaher did not produce all the books and records as required.
In February 2011, Shaher allegedly represented to Illinois Department of Revenue agents that sales records of Tira Oil had been destroyed in a fire at his home, when, in fact, the sales receipts were found at the Fast Stop gas station during execution of a search warrant on Feb. 28, 2012. As a result of Shaher’s alleged failure to report approximately $4.3 million in sales of gas and other goods by Tira Oil, the state of Illinois was defrauded of approximately $347,000 in state tax revenues.
Shaher Mizyed is charged with one count of bank fraud for allegedly providing a false 2007 tax return to the bank in March 2009, in support of an application to refinance his home mortgage in the amount of approximately $328,500. In fact, the indictment alleges the tax return provided to the bank was not the the tax return Shaher had filed with the IRS.
Mohammad Mizyed is also charged with bank fraud for allegedly providing false 2007 and 2008 tax returns to the bank in support of his request for a mortgage of approximately $319,000 to purchase his home in October 2009. The tax returns Mohammad provided to the bank were allegedly not the returns he had filed with the IRS.
In addition to the two conspiracy charges, Shaher is charged with three counts of filing false corporate tax returns; two counts of filing false amended corporate tax returns; four counts of mail fraud; and, one count of bank fraud. Mohammad is also charged with two counts of filing false personal tax returns and one count of bank fraud, in addition to the two conspiracy charges.
If convicted, the maximum statutory penalty for conspiracy to defraud the United States and to violate tax laws is up to five years in prison; for filing false or amended corporate or personal tax returns, the penalty is up to three years in prison; for bank fraud the penalty is up to 30 years in prison; up to five years in prison for conspiracy to commit mail fraud, and for each count of mail fraud, the statutory penalty is up to 20 years in prison.
The case is being prosecuted by Supervisory Assistant U.S. Attorney Darilynn J. Knauss and Special Assistant U.S. Attorney Eugene Bian of the Office of the Illinois Attorney General. The charges are the result of investigation by Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation and the Illinois Department of Revenue.
The defendants will be given a notice to appear in federal court on a date to be determined by the U.S. Clerk of the Court.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Guardian of Justice AwardRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two Kansas City, Mo., police detectives and an agent with the U.S. Department of Agriculture have received the Guardian of Justice Award.
Kansas City Police Department Detectives Josh Davis and James Svoboda and USDA Special Agent David Colegrove were honored on Thursday, Aug. 14, 2014, during the 12th Annual LECC Training Seminar in Springfield, Mo.
Josh Davis & James Svoboda
Davis and Svoboda were recognized for their investigative excellence, selfless collaboration, tireless trial support, commendable diligence and professionalism, and noteworthy assistance in the successful prosecution of a dozen defendants involved in a 10-year long drug-trafficking conspiracy that resulted in the death of one individual and the distribution of more than three kilograms of heroin in the Kansas City area.
The lead defendant, Timothy M. Kirlin, also known as “Jim Curlon,” 34, of Kansas City, was found guilty at trial of all nine counts contained in an Oct. 16, 2013, federal indictment. Kirlin was found guilty of participating in a conspiracy to distribute 1,000 grams or more of heroin, as well as cocaine, from Jan. 1, 2002, to Feb. 3, 2012.
On March 5, 2002, Kirlin distributed heroin to Joshua Webb, and the use of this heroin by Webb resulted in his death.
Kirlin traveled to Dallas, Texas, at least once a month to purchase heroin and other drugs for resale in the Kansas City area. The usual amount that Kirlin would purchase in Dallas was four ounces of heroin, although he bought more on occasion. He sometimes transported the heroin back to Kansas City by hiding it in his rectum. Because Kirlin had been shot in the head, he was unable to drive himself, and would ride the bus to Texas and frequently enlist the aid of others in the conspiracy to drive him from place to place.
In addition to the conspiracy, Kirlin was found guilty of being a felon in possession of explosives. Kirlin, who has two prior felony convictions for possession of a controlled substance, was in possession of four sticks of explosives (along with manuals on how to build explosive devices) on Feb. 2, 2012. Kirlin was also convicted of six counts of distributing heroin and one count of possessing heroin with the intent to distribute.
Kirlin, who has not yet been sentenced, is subject to a mandatory sentence of life in federal prison without parole. One co-defendant was convicted with Kirlin at trial and 10 co-defendants pleaded guilty.
David Colegrove
Colegrove was recognized for his investigative excellence, selfless collaboration, tireless trial support, commendable diligence and professionalism, and noteworthy assistance in the successful prosecution of eight defendants involved in a scheme to steal nearly $1 million worth of trucks and trailers and their cargo in a multi-state area.
The lead defendant, Kenneth Ray Borders, 43, of Kansas City, Mo., and two co-conspirators were found guilty at trial of participating in a conspiracy that involved the theft of commercial trucks and trailers and their cargo in Missouri, Kansas, Florida, Arkansas, Oklahoma, and Nebraska. They worked together to steal trucks, trailers, and cargo and then dispose of them. Sometimes they used the trucks and trailers themselves to make money by hauling loads for customers and sometimes they sold the stolen trucks and trailers.
The conspiracy involved the thefts of five Freightliner trucks and 17 trailers between 2005 and 2011. The stolen trailers included refrigerated trailers containing such cargo as 39,000 pounds of meat, 565 boxes of beef valued at $149,790, $125,000 worth of frozen ribs, and several refrigerated trailers that each contained tens of thousands of dollars’ worth of frozen chicken, including a load of frozen chicken wings valued at $59,706. Also stolen were utility trailers containing such cargo as Budweiser beer valued at $16,657, Nike shoes valued at $217,353 and 21,018 pounds of Little Sizzler sausages.
Stolen cargo was sold cheaply to anyone who would buy it. Some of the cargo was sold out of the back of the trailer; some of it was sold to a tow truck driver or a convenience store operator to resell.
Jon Dirk Dickerson, 56, of Raytown, Mo., and his son, Kyle Wayne Dickerson, 31, of Holden, Mo, were also convicted at trial. The Dickersons used the stolen trucks and trailers in their own trucking business, sometimes just for replacement parts with the remains sold for scrap. Since they had little financial investment in the stolen trucks and trailers, and knew that they had a readily-available and cheap supply of stolen trucks and trailers, they had little incentive to maintain and repair their fleet. As a result, their fleet wore out and had safety issues, such as problems with brakes and tires. When their fleet wore out, they simply replaced them with more stolen trucks and trailers. The Dickersons did not bother to maintain and repair their trucks and trailers but continued to operate them in interstate commerce. As a result, DOT/FMCSA and other law enforcement repeatedly cited their company and drivers for failing inspections and violating regulations. The company's compliance reviews led to unsatisfactory safety ratings which led to a total of $450,000 in fines and numerous “out of service orders” directing them to cease operating in interstate commerce. The Dickersons just ignored the orders and the fines.
Three additional co-defendants pleaded guilty to receiving stolen goods and two additional defendants pleaded guilty in separate, but related, cases to their roles in the conspiracy.
Guardian of Justice Award
The annual Guardian of Justice Award recognizes a state or local officer as well as a federal agent for investigative excellence, selfless collaboration, tireless trial support, commendable diligence and professionalism, and noteworthy assistance to prosecution. The prestigious law enforcement award is presented by the U.S. Attorney’s Office each year during the law enforcement training conference.Former Saratoga County Deputy Sheriff Pleads Guilty to Drug ChargeRead the Press Release
Transported a Confidential Source Who Claimed to Possess Cocaine in an FBI Sting
ALBANY, NEW YORK —CHARLES E. FULLER, age 46, of Corinth, New York, pled guilty today in Albany before Chief United States District Court Judge Gary L. Sharpe to one count of attempting to aid and abet the possession with intent to distribute a controlled substance, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent-in- Charge, Federal Bureau of Investigation, Albany Division. Fuller faces at least five years of imprisonment and up to forty years of imprisonment.
During the plea hearing, Fuller admitted that in February of 2014, while he was employed as a Saratoga County Deputy Sheriff, he accepted a total of $5,000 from a confidential source supervised by the Federal Bureau of Investigation as payment for transporting the confidential source while the source was carrying what Fuller believed to be cocaine. The source actually had imitation cocaine. The defendant made two trips from Albany to Warren County: one on February 19, 2014 and one on February 27, 2014. During the first trip, the defendant drove the source with what he believed to be 250 grams of cocaine in return for $1,000, and during the second trip, the defendant transported the source with what he believed to be one kilogram of cocaine in return for $4,000.
Sentencing is scheduled for December 18, 2014, at 1:00 p.m. in Albany, New York. This case was investigated by the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Daniel Hanlon.
Former San Ysidro School District Superintendent Pleads Guilty to Extracting Political Contributions from Prospective Contractor by Threatening to Withhold WorkRead the Press Release
SAN DIEGO – Former superintendent of the San Ysidro School District Manuel Paul pled guilty today in federal court to deprivation of benefits for political contributions. Paul worked in the San Ysidro School District (“SYSD”) for 38 years as a teacher, principal, and superintendent, a post he held from 2007 until his resignation in 2013.
According to court documents, Paul had several duties as superintendent, including recommending contractors for consideration and approval by the SYSD Governing Board for SYSD construction projects.
Paul admitted in his plea agreement to requesting that a contractor (“Contractor A”) make $3,600 in campaign contributions to three political candidates for the 2010 Board election, identified in the plea agreement as Candidates A, B, and C. Paul admitted that he made clear that Contractor A’s inclusion on the list of potential contractors for future District building projects was contingent on Contractor A making the payment. According to the plea agreement, shortly thereafter – and only two months before the 2010 Board election – Paul accepted $2,500 in cash from Contractor A in the parking lot of a Chula Vista restaurant. Paul admitted that he then contributed a portion of the $2,500 to the political campaigns of Candidates A, B, and C by purchasing campaign signs from a print shop in Tijuana. According to court documents, Candidates A, B, and C won the three open seats.
Charging documents allege that almost two years later, in July 2012, Paul provided Candidates A, B, and C a receipt for the purchase of $1,401 in campaign signs for the 2010 election. The receipt lists a third party as the purchaser of the signs.
Simultaneous with his guilty plea, Paul also entered into a stipulation with California’s Fair Political Practices Commission, in which he admitted to receiving a gift in excess of the annual gift limit by accepting the $2,500 from Contractor A. As part of his settlement with the FPPC, Paul agreed to pay a $5,000 fine. The stipulation will be considered by the FPPC at its October hearing.
United States Attorney Laura E. Duffy stressed that her office will continue to pursue vigorously any criminal activity that seeks to introduce illegal money into campaigns. “Today’s guilty plea is a stark reminder that illegal money in our elections – regardless of the amount – is a threat to our democratic form of government and will be treated as such by our office. All citizens of our district have the right to elections free from dollars obtained through coercion.”
FBI Special Agent in Charge, Daphne Hearn, commented, "We demand the best from our public servants and expect them to deal honestly and fairly when conducting the public's business. Mr. Paul did not do that, and will now be held accountable for his actions." The FBI encourages the public to report allegations of public corruption to the FBI public corruption hotline at telephone number (877) NO - BRIBE (662-7423).
United States Magistrate Judge William V. Gallo ordered Paul to appear on November 18, 2014, for sentencing.
DEFENDANT Case Number: 14CR2351-H Manuel Paul Age: 63 Bonita, CA CHARGESDeprivation of Benefit for Political Contribution – Title 18, U.S.C., Section 601
INVESTIGATING AGENCY
Maximum penalty: 1 year imprisonment and $100,000 fineFederal Bureau of Investigation
*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Former Los Alamos National Laboratory Worker Sentenced for Violating Atomic Energy Act ViolationsRead the Press Release
ALBUQUERQUE – The Justice Department today announced that a former contract employee at the Los Alamos National Laboratory (LANL) was sentenced this morning for conspiring to violate the Atomic Energy Act by communicating classified nuclear weapons data to a person believed to be a Venezuelan government official, and making false statements to the FBI.
Marjorie Roxby Mascheroni, 71, of Los Alamos, N.M., was sentenced by U.S. District Judge William P. Johnson to a year and a day in federal prison followed by three years of supervised release based on a guilty plea entered in June 2013. Her husband, Pedro Leonardo Mascheroni, 79, a naturalized U.S. citizen from Argentina who is also a former LANL employee, also entered a guilty plea in June 2013, and is in federal custody pending his sentencing hearing.
According to court filings, Mascheroni, a Ph.D. physicist, worked as a scientist at LANL from 1979 to 1988 and held a security clearance that allowed him access to certain classified information, including “Restricted Data.” Roxby Mascheroni worked at LANL between 1981 and 2010, where her duties included technical writing and editing. She also held a security clearance at LANL that allowed her access to certain classified information, including “Restricted Data.” As defined under the Atomic Energy Act, “Restricted Data” is classified information concerning the design, manufacture or use of atomic weapons; the production of special nuclear material; or the use of special nuclear material in the production of energy.
Mascheroni and Roxby Mascheroni were indicted in Sept. 2010, and charged with conspiracy to communicate and communicating Restricted Data to an individual with the intent to secure an advantage to a foreign nation. The indictment also charged the couple with conspiracy to convey and conveying classified Restricted Data. It also charged Mascheroni with concealing and retaining U.S. records with the intent to convert them to his own use and gain, and both defendants with making false statements.
Roxby Mascheroni pled guilty to Count 6 of the indictment, charging her with conspiracy, and Counts 16 through 22, charging her with making false statements. She also pleaded guilty to an information charging her with conspiracy to communicate Restricted Data. In entering her guilty plea, Roxby Mascheroni admitted that between Oct. 2007 and Oct. 2009, she conspired with Mascheroni to convey Restricted Data belonging to the United States to another person with reason to believe that the information would be used to secure an advantage to Venezuela. She also admitted making materially false statements to the FBI when she was interviewed in Oct. 2009.
Mascheroni pleaded guilty to Counts 7 and 8 of the indictment, charging him with conversion of government property, and Counts 10 through 15, charging him with making false statements. Mascheroni also pleaded guilty to an information charging him with two counts of communication of Restricted Data and one count of retention of national defense information. Mascheroni admitted that in Nov. 2008 and July 2009, he unlawfully communicated Restricted Data to another individual with reason to believe that the data would be utilized to secure an advantage to Venezuela. He also admitted unlawfully converting Department of Energy information to his own use and selling the information in Nov. 2008 and July 2009, and failing to deliver classified information relating to the United States’ national defense to appropriate authorities and instead unlawfully retaining the information in his home. Finally, Mascheroni admitted making materially false statements to the FBI when he was interviewed in Oct. 2009.
The indictment in this case did not allege that the government of Venezuela or anyone acting on its behalf sought or was passed any classified information, nor did it charge any Venezuelan government officials or anyone acting on their behalf with wrongdoing. The indictment also did not allege any wrongdoing by other individuals working at LANL.
This investigation was conducted by the FBI’s Albuquerque Division with assistance from the Department of Energy and LANL. The prosecution is being handled by Assistant U.S. Attorneys Fred J. Federici, Dean Tuckman and Holland S. Kastrin of the U.S. Attorney’s Office for the District of New Mexico, and Acting Section Chief Kathleen Kedian and Trial Attorney David Recker of the Counterespionage Section of the Justice Department’s National Security Division.
Former Lonsdale Debt Collector Sentenced to 175 Months in Prison for Attempting to Steal More Than $700,000 Through Identity Theft and FraudRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of KHEMALL JOKHOO, 36, to 175 months in federal prison for attempting to steal more than $700,000 by using the identities of more than 60 victims. On November 5, 2013, a jury in United States District Court in Minneapolis convicted JOKHOO of all the charges presented to them, including Aggravated Identity Theft, Bank Fraud, Mail Fraud, Wire Fraud, and False Personation of an Officer or Employee of the United States.“Identity theft is a widespread problem,” said U.S. Attorney Luger. “Working with our partners in local and federal law enforcement, including the Minnesota Financial Crimes Task Force, we stopped this defendant from targeting additional victims. Only through continued partnership among law enforcement officials will we stem the tide of financial fraud and identity theft. There is more work to be done.”
As proven at trial and according to documents filed in court, JOKHOO, formerly registered as a debt collector, was the owner and sole employer of First Financial Services, Inc. (First Financial), a collection agency licensed in Minnesota from May 9, 2002, until November 3, 2009. As a debt collector, the defendant had access to sensitive credit information, including social security numbers, bank account information, dates of birth, addresses, and other identifying information of the victims of his scheme. JOKHOO used this information to harass and intimidate victims and to demand payment to him for purported debts. When he could not convince victims to pay him, JOKHOO impersonated victims, using their bank account and other identifying information to take over and steal directly from their accounts.
According to documents filed in court, JOKHOO, in addition to using intimidation tactics, threatened victims with physical harm if they did not pay him. With regard to one victim, a disabled veteran, the defendant threatened to “push his wheelchair over the bridge,” if he did not pay. JOKHOO also targeted elderly victims as part of his scheme. Assistant U.S. Attorney Lola Velazquez-Aguilu said: “The term ‘identity theft’ seems an inadequate description for what the defendant did to the victims in this case. He used their identifying information not only to steal their money, but also to terrorize them, taking pleasure in making other human beings feel completely powerless and without worth. This defendant’s sentence sends an important message to debt collectors who use their positions of trust to steal.”
Assistant U.S. Attorneys Velazquez-Aguilu and LeeAnn K. Bell prosecuted this case.
The Minnesota Financial Crimes Task Force, Minnesota Department of Commerce, United States Postal Inspection Service, and Lonsdale Police Department conducted the investigation.
The Minnesota Financial Crimes Task Force was established under state law, and is comprised of local, state, and federal law enforcement investigators, who work to combat the growing trend of cross-jurisdictional financial crimes.
Defendant Information:KHEMALL JOKHOO
Lonsdale, MN
Convicted: • Bank Fraud, 11 counts
• Aggravated Identity Theft, 10 counts
• Mail Fraud, 9 counts
• Wire Fraud, 2 counts
• False Personation of an Officer or Employee of the United States, 1 count
Sentenced: • 175 Months in federal prison
• 5 years supervised releaseFormer Hillsborough County Resident Pleads Guilty to Conspiracy to Commit Bank, Wire and Mail FraudRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Brendan Bolger (40, Chicago, IL) today pleaded guilty to conspiracy to commit wire, mail and bank fraud. Bolger faces a maximum penalty of 30 years in federal prison.
According to the plea agreement, in 2005, entities controlled by co-conspirators entered into a contract to purchase The Arbors, an apartment complex in Hillsborough County, Florida. The new owners of The Arbors then engaged in a plan to convert the complex from rental apartment units to condominium units. The developers financed their purchase of The Arbors with a loan from Corus Bank, a financial institution whose deposits were then insured by the FDIC. The loan agreement imposed strict conditions upon the timing of the conversion process. It required that the developers could not file a Declaration of Condominium or close on any condominium unit unless they had sales on 80 units and closed on all of them within 45 days of the closing on the sale of the first condominium unit. The Corus loan agreement also specified that Corus was to receive 100% of the net proceeds of the sale of the first 80 units and that all of these events had to occur within one year of the loan agreement. The Corus loan agreement also set forth substantial financial penalties for the developers if they failed to satisfy these requirements.
Bolger aided the developers in the sale of numerous condominium units at The Arbors through his company, Capital Management Guarantee, LLC. In order to induce buyers to purchase units at The Arbors, Bolger created an addendum to the purchase contract that offered buyers various incentives such as rental supplements, money to defray maintenance costs and a design credit to upgrade the unit’s amenities. When the buyers cancelled the design credit within 10 days of signing the addendum, Bolger paid a kickback for the amount of the design credit to the buyer from Capital Management’s bank account. In this manner, Bolger and other co-conspirators failed to disclose to both Corus Bank and to the purchasers’ mortgage lenders material facts about the financing of the sale of The Arbors condominium units.
Bolger has agreed to forfeit specific property, including but not limited to, a combined forfeiture money judgment of $18,394,134.00 which represents $4,322,264 associated with the fraud perpetrated on Corus Bank and $14,071.870 associated with the fraud perpetrated on the mortgage lenders.
This case was investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency Office of Inspector General. It is being prosecuted by Assistant United States Attorney Jay Hoffer and Special Assistant United States Attorney Chris Poor.
Former Hell's Angels Member Pleads Guilty to Methamphetamine TraffickingRead the Press Release
Rochester, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Richard E. Riedman, 40, of Webster, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to conspiracy to distribute and possession with intent to distribute, methamphetamine. The charge carries a maximum penalty of 20 years in prison, a fine of $1,000,000, or both.
Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that the charges stemmed from a joint federal, state and local investigation, which revealed that the defendant was responsible for obtaining quantities of methamphetamine from drug suppliers, including fellow Rochester Hell’s Angels member James H. McAuley, Jr., and distributing those drugs to others in the Western District of New York between 2004 and 2010.
This case was part of a larger investigation that resulted in the indictment and arrest of members and associates of the Rochester and Monterey (California) Hell's Angels for drug trafficking and racketeering-related offenses in February 2012. Along with Riedman, Monterey (California) Hell's Angels President Richard W. Mar, Rochester Hell's Angels members James H. McAuley, Jr., of Oakfield, NY, and Jeffrey A. Tyler, of Rochester, NY, and Donna Boon, of Oakfield, NY, and Gordon L. Montgomery, of Batavia, NY, are charged with conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of methamphetamine. Another defendant, Paul Griffin, of Blasdell, NY, was convicted of conspiracy to distribute, and to possess with intent to distribute, 50 grams or more of methamphetamine.
McAuley, Rochester Hell's Angels member Robert W. Moran, Jr. a/k/a Bugsy, of Rochester, along with Gina Tata, of Rochester, are charged in the same indictment with assault with a dangerous weapon in aid of racketeering activity. Moran and Tata are also charged with conspiracy to commit assault with a dangerous weapon in aid of racketeering activity, and Tata and Timothy M. Stone, of Gates, NY, are charged with being accessories after the fact to the assault and conspiracy.
The plea is the culmination of an investigation on the part of the Federal Bureau of Investigation, the Genesee County Sheriff's Office, under the direction of Sheriff Gary T. Maha, the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the New York State Police, under the direction of Major Scott Crosier, the City of Batavia Police Department, under the direction of Chief Shawn Heubusch, and the Village of LeRoy Police Department, under the direction of Chief Christopher K. Hayward.
Sentencing is scheduled for November 24, 2014, at 10:00 a.m. before Judge Siragusa.Former Department of Public Safety Employee and Co-conspirators Plead Guilty to Identity Theft ChargesRead the Press Release
Hattiesburg, Miss - Former Mississippi Department of Public Safety employee Yolanda Jean Perkins, 48, of Laurel, Lorena Gomez, 33, of Laurel, and Jose Martel Rivera, 32, an illegal alien from Mexico, all pled guilty in federal court on August 18, 2014, to conspiracy to commit identity theft, announced U.S. Attorney Gregory K. Davis and Raymond Parmer, Special Agent in Charge of Homeland Security Investigations.
The conspiracy involved the sale by Gomez and Rivera of authentic Texas birth certificates with matching social security cards to illegal aliens, and the subsequent purchase of Mississippi drivers’ licenses and state IDs, with the assistance of Perkins who worked at the Laurel driver’s license bureau.
“Fraudulent documents threaten the security of all citizens by making it easier for criminals to commit a range of offenses from identity theft to potential terrorism,” said Raymond R. Parmer, Jr., Special Agent in Charge of HSI New Orleans. “Further, this scheme created a nightmare scenario in which citizens could have been held responsible for driving infractions or criminal acts committed by aliens possessing fraudulent identity documents in their names. These criminals willingly stole identities and threatened national security all in the name of a quick buck. These guilty pleas show HSI and its state partners will continue to investigate and seek prosecution of these cases wherever they occur.” Parmer oversees a five-state area of operations to include Mississippi, Alabama, Arkansas, Louisiana, and Tennessee.
The defendants will be sentenced by U.S. District Judge Keith Starrett on October 27, 2014. The maximum penalty for conspiracy is 15 years in prison and $250,000 fine.
This case is the result of an investigation by Homeland Security Investigations and the Mississippi Bureau of Investigation. Assistant U.S. Attorney Annette Williams is prosecuting the case.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Former Chief Merchandising Officer of Aeropostale, Inc. Sentenced to 8 Years in Prison for $25 Million Bribery SchemeRead the Press Release
Christopher Finazzo, the former Executive Vice President and Chief Merchandising Officer of national teenage clothing retailer Aéropostale, Inc. (“Aéropostale”), was sentenced in federal court in Brooklyn, New York, to 8 years in prison. In April 2013, Finazzo was convicted of all 16 counts of fraud and bribery, following a three-week jury trial, for directing more than $350 million in t-shirt and fleece business to South Bay Apparel Inc. (“South Bay”), a company owned by Hollywood movie producer Douglas Dey, in exchange for receiving more than $25 million in kickbacks from Dey. As part of the sentence, Finazzo was also sentenced to 3 years’ supervised release, ordered to forfeit more than $25 million to the government, and pay $13,690,822.94 in restitution to Aéropostale, a publicly traded company on the New York Stock Exchange. Dey pleaded guilty in September 2012 to conspiracy to violate the Travel Act through commercial bribery for his role in the scheme and was sentenced on August 6, 2014 to 42 months in prison.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“For over a decade, Christopher Finazzo abused his position of power at Aéropostale and betrayed the trust placed in him by the company, its investors, and its employees by lining his own pockets at his employer’s expense. To succeed in this decade-long kickback scheme, Finazzo lied on numerous disclosure forms and caused Aéropostale to make false filings with the Securities and Exchange Commission. These lies and false representations compromised the financial well-being of a publicly-traded retail company. Those who seek to commit corporate fraud by abusing their positions of trust are on notice that they will be held accountable for their crimes,” stated United States Attorney Lynch. Ms. Lynch thanked the FBI and the Securities and Exchange Commission for their assistance.
Shortly after Finazzo was hired by Aéropostale in July 1996, he and Dey entered into a fraudulent scheme whereby Finazzo directed Aéropostale’s graphic t-shirt business to South Bay in exchange for splitting South Bay’s profits with Dey. From 1996 to 2006, Finazzo caused Aéropostale to buy more than $350 million in t-shirt and fleece merchandise from South Bay, often for significantly higher prices and lower quality than was available from other suppliers. In exchange, Dey paid Finazzo more than $25 million in bribes and kickbacks, equaling approximately 50% of South Bay’s profits. In 2005 alone, at the peak of the business between Aéropostale and South Bay, Dey paid Finazzo more than $13 million in kickbacks. The kickbacks were paid through C&D Retail Consultants, a shell consulting corporation set up by Finazzo, and through companies jointly-owned by Finazzo and Dey.
Finazzo’s lies and omissions about his relationship with Dey on numerous disclosure forms, which he was required to complete as a senior officer of Aéropostale, caused Aéropostale to make multiple false filings with the SEC. Finazzo completely controlled Aéropostale’s business with South Bay and favored Dey and South Bay to the detriment of Aéropostale’s profit margins. For example, Finazzo refused to comply with Aéropostale’s then Chief Executive Officer Julian Geiger’s directive to place 25% of the t-shirts orders with overseas vendors at a significantly lower cost than what Aéropostale paid South Bay, thereby costing Aéropostale approximately $6 million.
When Aéropostale’s employees sought to lower the price of t-shirts purchased from South Bay or hold South Bay accountable for poor quality and late deliveries, Finazzo stepped in and quashed their efforts. For example, when a graphic t-shirt merchant questioned South Bay’s cost structure, Finazzo emailed the head of Aéropostale’s men’s division and stated, “I would like to let you know that if I hear that [the merchant] is talking trash about South Bay to other people in the company, I will not tolerate that, and I will be swift in my actions.” Similarly, when other employees questioned South Bay’s effective monopoly on the t-shirt business, Finazzo sent an email to his senior staff stating, “Last night when I could not sleep I decided that as long as I’m here we will run the business as we started it with our key vendors … I will not change our vendor structure or the way we set up this business and I guess I can make that decision. I want South Bay to be the main t-shirt supplier.”
The sentence was imposed by United States District Judge Roslynn R. Mauskopf.
The government’s case was prosecuted by Assistant United States Attorneys Winston M. Paes and Claire Kedeshian.
This prosecution was the result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets, and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants. For more information on the task force, visit http://www.StopFraud.gov.
The Defendant:
CHRISTOPHER FINAZZO
Age: 57
Garden City, New York
E.D.N.Y. Docket No. 10-CR-457
Former Buffalo Woman Pleads Sentenced on Drug ChargeRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Jacquelyn Witman, 32, formerly of Buffalo, N.Y., now residing in the Atlanta, Georgia, who was convicted of conspiracy to possess with intent to distribute, and to distribute, marijuana, was sentenced to time served, six months home detention and two years supervised release by Chief U.S. District Court Judge William M. Skretny.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that between 2010 and February 2011, the defendant conspired with others to distribute marijuana. On February 21, 2011, Witman attempted to board a flight at the Buffalo Niagara International Airport to Arizona. During a security screening, screeners found $21,150 in U.S. currency, money the defendant admitted was the proceeds of marijuana sales.
During the investigation, law enforcement officers seized approximately $1,000,000 in U.S. currency.
Other defendants charged in the case include Shane Grafman, of Phoenix, Arizona and Elijah Chaffino, of Tempe Arizona, who have been convicted and are awaiting sentencing. Charges are still pending against defendants Jordan Ali, formerly of Alden, N.Y, Jason Nati and Gabriel Rodriguez, both of Buffalo, N.Y. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the culmination of investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Acting Special Agent in Charge, New York Field Division; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero; Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office; United States Postal Service Inspection Service, under the direction of Acting Inspector-in-Charge Shelly A. Binkowski; Federal Bureau of Investigation; Buffalo Police Department, under the direction of Commissioner Daniel Derenda; Erie County Sheriff's Department, under the direction of Sheriff Tim Howard; Niagara Frontier Transit Authority, under the direction of Chief George Gast; Tempe, Arizona Police Department; Apache County, Arizona Sheriff's Department; and Oklahoma State Police.Food Service Company Manager Indicted on Charges of Embezzling over $400,000 in Customer PaymentsRead the Press Release
Baltimore, Maryland - A federal grand jury today indicted Cesar Raphael Barretto, age 43, of Severn, Maryland, on charges of wire fraud, in connection with a scheme embezzle over $400,000 from the company where he worked.
The indictment 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.According to the indictment, Barretto was a territory manager for U.S. Foods, Inc., a company that distributed food and supplies to restaurants, hospitals, hotels, and other businesses. Barretto worked out of the U.S. Foods office in Severn, where he was responsible for helping customers place orders for U.S. Foods products. Barretto transmitted customer orders to the company electronically. The orders were then sent to a regional distribution center where they were picked up by the customer, or picked up and delivered to the customer by Barretto. In addition, Barretto tracked the sales of products in his region and was responsible for collecting the balances due on customers’ invoices. When Barretto received a payment from a customer, he deposited it into the U.S. Foods bank account and emailed the company a collection report, which credited the customer’s account.
The nine count indictment alleges that from June 2010 through July 2012, Barretto defrauded one of U.S. Food’s customers, American Pollo Restaurant Group, by diverting over $400,000 in payments he received on their account to pay for cases of food that Barretto ordered for himself under the account of another U.S. Foods customer, a bakery located in Langley, Maryland, without that customer’s knowledge.
Specifically, the indictment alleges that Barretto ordered cases of food from U.S. Foods for his own personal use, using the bakery customer’s account. According to the indictment, Barretto paid for the unauthorized purchases by diverting a portion of the payments received from American Pollo to the bakery customer’s account. The indictment alleges that in collection reports emailed to U.S. Foods, Barretto falsely listed some of American Pollo’s payments as credits to the bakery customer’s account, thereby paying off the outstanding balances created in that account by Barretto’s unauthorized purchases. Barretto then allegedly sold the products he obtained with the embezzled funds to a restaurant in Laurel, Maryland, in exchange for cash.
The indictment alleges that Barretto paid for more than 300 unauthorized food purchases from U.S. Foods by creating and submitting false collection reports that transferred approximately $414,313.01 in collection payments from American Pollo to the bakery customer’s account. The indictment seeks the forfeiture of the proceeds of the scheme, which is at least $414,313.01.
Barretto faces a maximum sentence of 20 years in prison for each of nine counts of wire fraud. An initial appearance for Barretto has not yet been.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Martin J. Clarke, who is prosecuting the case.
Federal Jury Finds Kirtland, N.M., Man Guilty on Sexual Assault ChargesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Santa Fe, N.M., returned a verdict this afternoon finding Steven Michael John guilty on sexual abuse charges after a three-day trial. The jury’s verdict was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, and Director John Billison of the Navajo Nation Division of Public Safety.
John, 21, an enrolled member of the Navajo Nation who resides in Kirtland, N.M., was arrested on July 24, 2013, on a criminal complaint alleging sexual abuse charges. John was indicted on Aug. 14, 2013, and charged with attempted aggravated sexual abuse and abusive sexual contact. The indictment alleged that John attempted to force the victim to engage in a sexual act at a location within the Navajo Indian Reservation in San Juan County, N.M., on July 18, 2013. It also alleged that John engaged in sexual contact with the victim on that day.
Trial of this case began on Aug. 18, 2014, and concluded this afternoon when the jury returned a guilty verdict on both counts of the indictment.
The evidence at trial established that on the afternoon of July 18, 2013, John broke into a residence in Sanostee, N.M., and attempted to rape a 16- year-old Navajo girl. The victim was taking a shower when John entered the residence and attacked her. Although the victim resisted John’s attack and was able to prevent John from raping her, John groped the victim’s naked body during their struggle. After John fled from the residence, the victim called 911 and reported the assault. The evidence presented to the jury included the victim’s recorded 911 telephone call, photographs of the injuries the victim suffered as she struggled against John’s attack, and the testimony of medical professionals who treated the victim after the assault.
John faces a statutory maximum penalty of life imprisonment when he is sentenced. His sentencing hearing has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. The case is being prosecuted by Assistant U.S. Attorney Jennifer M. Rozzoni with assistance from Kristopher N. Houghton, Esq., a contractor with the U.S. Attorney’s Office.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Federal Jury Convicts San Antonio Man for Sex Trafficking of MinorsRead the Press Release
In San Antonio today, a federal jury convicted 38–year-old Marcus Deshawn Wright for his role in prostituting two minor females last year announced United States Attorney Robert Pitman, Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division and Texas Attorney General Greg Abbott.
The jury convicted Wright of two counts of sex trafficking of minors and one count of production of child pornography. Evidence presented during the trial revealed that Wright and his codefendants, 22-year-old Malcolm Deandre Copeland and 20-year-old Amber Doak, both of San Antonio, were involved in a scheme beginning in August 2013 to entice and encourage minors into engaging in sexual acts for money. Wright recruited two minor females to engage in commercial sex in San Antonio and Corpus Christi for his financial gain. Wright also produced multiple videos which depicted sexual activity involving a minor.
Wright, who remains in federal custody, faces between ten years and life in federal prison for sex trafficking of minors and between 15 and 30 years in federal prison for production of child pornography. He is scheduled to be sentenced on January 16, 2015.On July 23, 2014, a federal jury convicted Copeland of two counts of sex trafficking of minors. Doak pleaded guilty in March 2014 to one count of sex trafficking of minors. Each faces between ten years and life in federal prison. Sentencing for Copeland and Doak is scheduled for December 4, 2014, and September 12, 2014, respectively.
The remaining co-defendant—41–year-old New Hampshire resident Raymond Valas—awaits jury selection and trial scheduled for November 17, 2014, before U.S. Chief District Judge Fred Biery. Valas is charged with one count of sex trafficking of a minor.
This case was investigated by the Federal Bureau of Investigation (FBI) together with the San Antonio Police Department. Assistant United States Attorney Bettina Richardson and Special Assistant United States Attorney Geoff Barr from the Texas Attorney General’s Office are prosecuting this case on behalf of the Government.
Federal Inmate Charged with Possessing WeaponRead the Press Release
ERIE, Pa. - An inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania, has been indicted by a federal grand jury in Erie on a charge of possession of contraband in prison, United States Attorney David J. Hickton announced today.
The one-count indictment named Oscar Acosta-Levario, 32, as the sole defendant.
According to the indictment presented to the court, on or about June 10, 2014, Acosta-Levario was in possession of contraband, namely a weapon.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
Officers of the McKean Federal Correctional Institution conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Father and Son Business Owners Facing Tax, Currency Structuring ChargesRead the Press Release
ERIE, Pa. - Two residents of Warren, Pennsylvania have been indicted by a federal grand jury in Erie on charges of violating federal tax and currency transaction laws, United States Attorney David J. Hickton announced today.
The eighteen-count indictment named Randall Branch, 62 and John Branch, 43, as defendants.
According to the indictment presented to the court, the defendants conspired to defraud the United States by impeding, impairing, obstructing, and defeating the lawful Government functions of the Internal Revenue Service; conspired to structure financial transactions to avoid currency transaction reporting requirements, and failed to file income tax returns for the years 2009, 2010 and 2011.
According to the Indictment, the father and son defendants owned a business through which they sold oil and natural gas through various brokers. Between 2006 and 2012, the Indictment alleges, that the defendants received combined gross income from their oil and natural gas business in excess of $6,900,000.00. It was a part of the conspiracy that despite their business income, the defendants stopped filing tax returns with the IRS after 1997, began to dispute their obligation to pay taxes, and challenged the authority of the IRS to assess and collect taxes. As part of the conspiracy, the defendants avoided the financial threshold reporting requirements on the FinCEN Form 104, Currency Transaction Report (CTR) and impeded the function of the IRS to assess and collect taxes by structuring approximately $2,649,210 in financial transactions. According to the Indictment, the defendants did so by requiring certain business receipts to be broken down and issued in checks made out in amounts less than $10,000.00. The defendants then allegedly cashed those checks, regularly doing so with multiple checks, at different bank branches, on the same day. The defendants also used their business receipt checks to obtain bank teller checks to pay certain expenses and to make purchases of various assets including real estate and vehicles. Further, according to the Indictment, the defendants used cash and business receipt checks to fund wire transfers for the purchase of approximately $484,367.00 of precious metals, further attempting to impede the function of the IRS to assess and collect taxes.
The law provides for a maximum total sentence of 63 years in prison, a fine of $3,300,000 or both for each defendant. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Internal Revenue Service, Criminal Investigation, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Falls Church Man Indicted for Sex Trafficking 17-Year-Old Runaway GirlRead the Press Release
RICHMOND, Va. – Alan Cooley, 34, of Falls Church, Virginia, was indicted by a federal grand jury yesterday for engaging in the sex trafficking of a child and transporting a minor across state lines for prostitution.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement.
According to court records, on March 26, 2014, the FBI was alerted that the Spotsylvania County Sheriff’sOffice had received a tip that a juvenile female allegedly was engaged in prostitution for a pimp known as “Midas,” later identified as Cooley. In the early morning hours of March 26, law enforcement located the juvenile in a hotel room in Dumfries, Virginia. During a subsequent interview, the juvenile revealed that she had run away from her home in North Carolina and had been recruited initially by a pimp in Charlotte to engage in prostitution. After two weeks of working for the Charlotte pimp, the juvenile allegedly was transported by Cooley to Fredericksburg, Virginia to engage in further prostitution.
According to court records, once Cooley, the juvenile and another adult prostitute arrived in Virginia, Cooley allegedly posted advertisements for the juvenile in the escorts section on Backpage.com. Cooley also is alleged to have used physical force and threats of violence against the juvenile, including hitting her in the face multiple times when the juvenile refused to engage in certain sex acts with a customer. When police first knocked on the Dumfries hotel room where Cooley and the juvenile were staying on March 26, Cooley is alleged to have violently prevented the victim from opening the door and threatened to kill her if she talked to the police.
Cooleyfaces a maximum penalty of life in prison if convicted.
This case was investigated by the FBI’s Richmond Field Office, with assistance from the Spotsylvania County Sheriff’s Office and the Prince William County Police Department. Assistant U.S. Attorney Heather L. Hart is prosecuting the case.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-110.
FBI Investigation Leads to Fraud Charges Against Erie ManRead the Press Release
ERIE, Pa. – A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of wire fraud, United States Attorney David J. Hickton announced today.
The eight-count indictment named John Paul Donico, 65, as the sole defendant.
According to the indictment presented to the court, from in and around May 2011, to in and around July 2012, Donico fraudulently obtained $350,000 from a Mexican construction company by promising to obtain financing for the construction of a rock crushing plant which he never obtained.
The law provides for a maximum total sentence of 160 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Erie Man Charged with Possessing Unregistered Firearms. Manufacturing Explosive DevicesRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania has been indicted by a federal grand jury in Erie on charges of violating federal gun laws, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on August 19, and unsealed today, named Gerald Szymanowski, 66, as the sole defendant.
According to the indictment presented to the court, on or about June 19, 2014, Szymanowski possessed approximately 38 unregistered firearms, including machineguns, silencers and destructive devices not registered to him in the National Firearms Registration and Transfer record and manufactured approximately 372 devices of varying sizes containing explosive materials.
The law provides for a maximum total sentence of 20 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Enoch B. Morelock AwardRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that Sgt. Marcus Burke of the Claycomo, Mo., Police Department has received the 2014 Enoch B. Morelock Award.
The Enoch B. Morelock Award is an annual recognition of outstanding moral character, service to law enforcement and service to the community. Sgt. Burke was honored on Thursday, Aug. 14, 2014, during the 12th Annual LECC Training Seminar in Springfield, Mo. The prestigious law enforcement award, presented annually by the U.S. Attorney’s Office, is named in honor of Sullivan County Sheriff Enoch B. Morelock, who was the first recorded line of duty death in the Western District of Missouri on Dec. 19, 1847.
Today’s police officer must be able to do more than write tickets or answer calls. Being a police officer requires being involved in your community. That is what Sgt. Burke exhibits in his small town on a daily basis. He is a well-respected member of the department and the community.
For example, a young boy in his town, whom the officer didn’t know, was diagnosed with brain cancer and told Sgt. Burke in 2010 that when he was cured he wanted to grow up and be a police officer. Sgt. Burke followed the boy’s progress and made regular visits to his home to check on him. In May 2011, Sgt. Burke coordinated with his chief and the city council to make a special presentation designating this boy as an honorary police officer. The city provided him with a police department t-shirt and ball cap; Sgt. Burke even bought the boy a duty belt with his own money.
Sgt. Burke took both on-duty and off-duty time to attend treatments with the young boy at home and in the hospital. In 2012, the boy was pronounced in a cancer-free remission status; however, earlier this year the cancer returned and moved to his spine. Sgt. Burke contacted the chief about providing an escort for the boy to the hospital for the first of many chemotherapy treatments. The chief approved and this event was carried by several TV stations in the area.
“Just show him, since he is an honorary police officer, that he is part of our family of law enforcement, and in this family no one fights alone,” Sgt. Burke was quoted in one interview. So into the front seat the boy jumped, fastened his seat belt, turned on the siren and away they went to the hospital. The boy’s father says Sgt. Burke gives their family a lot of support, which makes their situation a little easier on the family and on his son.
Enoch B. Morelock Award
Sullivan County Sheriff Enoch B. Morelock was the first recorded line of duty death in the Western District of Missouri on Dec. 19, 1847, in Sullivan County. Sheriff Morelock was shot and killed during a court‑ordered sale of the accused=s property. The accused killer, Patrick McIntry, was charged with 1st Degree Murder but was later acquitted. Within a year Mr. McIntry was found shot to death on the banks of a local river.
The annual Enoch B. Morelock Award recognizes individuals with outstanding moral character, service to law enforcement and to the community outside of law enforcement. Recipients may include officers from local police departments, sheriffs= offices, state agencies, or federal agencies as well as investigators from prosecutors= offices.
Delaware Man Pleads Guilty in Federal Court to Heroin DistributionRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced today that Bobby Evans, 29, of Delaware, entered a guilty plea in federal court in Charleston to distributing heroin. Evans admitted that on May 28, 2014, he met a confidential informant (CI) at Tudors Biscuit World on Washington Street East, in Charleston and sold heroin to the CI for $60.00. Evans also admitted that he had previously sold cocaine base (crack) to the same CI on May 27, 2014 in front of his residence on Washington Street East in Charleston. On May 29, 2014, officers executed a search warrant at the house where Evans was staying and found $40.00 of the money used by the CI to buy the heroin, additional heroin, and a gun.
Evans faces up to 20 years in prison when he is sentenced on November 13, 2014, by United States District Court Judge John T. Copenhaver, Jr.
The case was investigated by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Monica D. Coleman is in charge of the prosecution. The case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin.Dalton Man Faces Child Pornography ChargesRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced today that Ryan P. Collins, a 31 year-old male from Dalton, Ohio, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
The indictment charges that from on or about November 17, 2012, through on or about February 19, 2013, Collins knowingly received and distributed in interstate and foreign commerce, by computer, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct.
The indictment also charges that on February 28, 2013, Collins possessed a computer that contained child pornography.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique 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.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Canton Office of the Federal Bureau of Investigation and the Canton 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.
DBSI Founders Douglas L. Swenson and Mark A. Ellison Sentenced for Defrauding Thousands of InvestorsRead the Press Release
Court Orders Forfeiture of Over $228 Million in Fraud Proceeds
BOISE – DBSI founders Douglas L. Swenson, 66, of Meridian, Idaho, and Mark A. Ellison, 66, of Boise, Idaho, were sentenced today in federal court in Boise to federal prison terms for defrauding DBSI investors. Chief U.S. District Judge B. Lynn Winmill sentenced Swenson, DBSI’s former CEO, to 240 months in prison, followed by three years of supervised release and a $7,800 special assessment. His restitution will be ordered within 90 days. Judge Winmill sentenced Ellison, who previously served as DBSI’s General Counsel, to 60 months in prison, followed by three years of supervised release, and a $4,400 special assessment for his part in the fraud. His restitution also will be ordered within 90 days.
At sentencing, Judge Winmill found that the defendants were responsible for losses of more than $100 million. He also determined that there were more than 250 victims of the fraud. In sentencing Douglas Swenson, Judge Winmill noted that the losses in the case were staggering and that deterrence was an important consideration in a white collar case. He also stated that by 2006 or 2007, Swenson had to know that the company was making false statements.
Both Swenson and Ellison were convicted by a federal jury on April 14, 2014, of 44 counts of securities fraud. Douglas Swenson was convicted of an additional 34 counts of wire fraud. Their co-defendants, David D. Swenson, 38, of Boise, Idaho, and Jeremy A. Swenson, 41, of Meridian, Idaho, also former principals of DBSI and both sons of Douglas Swenson, were found guilty of 44 counts of securities fraud. They are scheduled to be sentenced on August 21, 2014.
During the 42-day trial, the jury heard evidence that DBSI, founded in 1979 and headquartered in Meridian, Idaho, sold a range of security investments, including bonds, notes, and Tenant-in-Common interests (TIC investments) in both improved and unimproved real estate. Until DBSI’s bankruptcy in November 2008, the defendants represented to investors that DBSI was a highly profitable company with a net worth in excess of $105 million, and that it operated a successful business model that minimized risk to its investors and paid fixed returns as high as of 9.5%.
The United States presented evidence that at trial that these representations were false. DBSI’s various businesses were almost entirely unprofitable and dependent on new investor funds in order to continue operations. DBSI’s represented net worth of more than $105-million in 2007 and 2008, was the result of deliberate accounting decisions directed and approved by the defendants, all of whom have advanced degrees in accounting.
The jury heard evidence that although the defendants knew of DBSI’s true financial condition, they withheld accurate financial information and took steps to conceal DBSI’s insolvency from investors, financial advisors, broker dealers, due diligence officers, and DBSI employees. In Private Placement Memoranda and other disclosures provided to prospective investors, the defendants misrepresented DBSI Housing’s income and net worth through deceptive accounting practices; failed to disclose DBSI’s cash shortages and deteriorating finances; misrepresented the likelihood of repayment on large investments in technology start-up companies; and failed to disclose DBSI’s dependence on new investor money to meet its existing obligations.
The jury also heard evidence that DBSI collected monies from investors called “Accountable Reserves” which it explicitly represented belonged to its investors and would only be used for specific expenses. The defendants diverted at least $80 million in investor’s Accountable Reserves for purposes other than those disclosed, including payment of the promised fixed investment returns to existing investors, operation expenses, and investments in technology start-up companies.
“Today’s significant sentences for Douglas Swenson and Mark Ellison send the clear message that those who induce investors to trust them with their money, in some instances with their life savings, have a solemn and legal obligation to be honest and truthful,” said Wendy J. Olson, U.S. Attorney for Idaho. “The losses caused by these defendants’ criminal conduct represent the greatest losses in any fraud case every prosecuted in the District of Idaho. It is appropriate that the protagonist of that fraud, Douglas Swenson, also receive the most serious sentence. The U.S. Attorney’s Office extends its heartfelt sympathies to those who were victims of this fraud, including, of course, to those investors who appeared in Court today to describe the devastating impact these crimes have had on their lives. We will continue to make every effort to insure that as many of the proceeds of these frauds as possible are recovered and returned to the victims.”
“When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime,” said Stephen Boyd, IRS Criminal Investigation Special Agent in Charge for the state of Idaho. “Today’s sentencing demonstrates how federal law enforcement will band together to help put an end to the criminal behavior of those who prey on investors. IRS Criminal investigators will continue to use their financial expertise to identify and trace funds in these types of investor fraud schemes.”
Concord Township Man Indicted for Defrauding Cleveland Credit Union Out of $2.3 MillionRead the Press Release
A seven-count federal indictment was returned charging a Concord Township man defrauding Taupa Lithuanian Credit Union out of $2.3 million, law enforcement officials said.
John Struna, 51, was indicted on one count of conspiracy to commit bank fraud, one count of bank fraud, one count of making false statements and four counts of money laundering.
The indictment was announced by Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office, and Kathy Enstrom, Special Agent in Charge of the Internal Revenue Service – Criminal Investigations.
“Most people learn early in life that there is no such thing as free money,” Dettelbach said. “This defendant is charged as part of a group that used others' hard earned savings as a personal piggy bank. Mr. Struna’s greed has caught up with him with this indictment.”
“John Struna willfully overdrew his credit union accounts to the tune of $2.3 million through his relationship with a corrupt executive at the credit union,” Anthony said.
“Fraud schemes harm everyone, especially those where someone, for their own personal benefit, has taken what belonged to others,” Enstrom said. “IRS Criminal Investigation is committed to unraveling financial transactions and money laundering schemes where individuals attempt to conceal the true source of their money.”
The National Credit Union Administration and the Ohio Department of Commerce took possession of Taupa last year and placed it into receivership due to its insolvency. Taupa, based in Cleveland, had about 1,150 members and assets of approximately $24 million, according to court records.
Credit union CEO Alex Spirikaitis, former teller Michael Ruksenas and Vytas Apanavicius have previously been found guilty for their roles in conspiracies related to defrauding the credit union.
Struna maintained both personal and corporate accounts at Taupa dating back to 1995. He began a conspiracy with Spirikaitis in 2002 and continued through 2013, during which time Spirikaitis caused Taupa to make approximately 46 fraudulent transfers into Struna’s accounts, according to the indictment.
In 2011, Struna requested and received $112,105 from Spirikaitis for the purchase of a condominium located in Ft. Myers, Florida. At no time did Struna submit any credit applications or loan documents, according to the indictment.
The fraudulent transfers totaled approximately $2.3 million. From 2002 through 2013, Struna repaid only approximately $15,000 of the $2.3 million Spirikaitis transferred into his accounts, according to the indictment.
The indictment also seeks to forfeit a 2014 Jeep Wrangler Unlimited, a 2014 Mazda 6 and the lost money.
This case is being prosecuted by Assistant United States Attorney Robert J. Patton and Special Assistant United States Attorney Derek Kleinmann. The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service.
If convicted, the defendant’s sentence will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.