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18 August 2014
Jackson Woman Sentenced to 92 Months in Prison for Stolen Identity Refund FraudRead the Press Release
Jackson, Miss. – Nikki Thomas, 37, of Jackson, was sentenced today by U.S. District Judge Henry T. Wingate to 92 months in federal prison followed by three years of supervised release for stolen identity refund fraud, announced U.S. Attorney Gregory K. Davis. Thomas was also ordered to pay restitution to the IRS in the amount of $771,956.27.
Thomas conspired to defraud the government by using personal identifying information, including names and social security numbers which had been stolen from the Central Mississippi Correctional Facility, the University of Mississippi Medical Center and other locations. The information was then used by Thomas and her co-conspirators to file false tax returns with the Internal Revenue Service. The tax returns claimed that the tax payers were owed a refund. Refunds were then electronically deposited into various bank accounts in Mississippi belonging to Thomas and her co-conspirators.
This case was investigated by the United State Secret Service and the Internal Revenue Service. Assistant U.S. Attorney Patrick Lemon 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:
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Hostage Taking Sends Four Mexican Nationals to PrisonRead the Press Release
McALLEN, Texas – Four Mexican nationals, who kidnapped a group of foreign nationals who had been smuggled into the U.S. by another smuggling group, have been sentenced to lengthy federal prison terms, announced United States Attorney Kenneth Magidson. Andres Perez-Moshan, 37, Humberto Alvarez-Cheo, 25, Roberto Salinas-Martinez, 29, and Euclides Moreno-Dominguez, 34, of Mexico and themselves illegally in the U.S., pleaded guilty to one count of hostage taking on Feb. 18, 2011, before Chief U.S. District Judge Ricardo H. Hinojosa.
Today, Judge Hinojosa sentenced Moreno-Dominguez to 204 months in prison. On Friday, Aug. 15, 2014, the court handed Perez-Moshan a 264-month term, while Alvarez-Cheo and Salinas-Martinez were each sentenced to 120 months in prison. As illegal aliens, they are all expected to face deportation proceedings following their release from prison.
According to court records, on Nov. 24, 2008, the four defendants entered a stash house at an unknown location near Mission and kidnapped approximately 21 foreign nationals – all illegally in the United States. The defendants forcibly took them by gunpoint to a mobile home north of Edinburg where they were all arrested by Border Patrol agents the next day. At the time of arrest, agents seized three handguns with corresponding ammunition.
While at the Edinburg stash house, the four had forced the foreign nationals to strip, took all of their possessions, held them against their will and forced them to contact family members in the United States or abroad to extort a ransom for their release. The foreign nationals were threatened with the loss of their lives if they did not comply or if the ransom money was not received. Additionally, three of the female foreign nationals reported that Perez-Moshan and Moreno-Dominguez had sexually assaulted them.
All four defendants have been in custody since their arrest where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by Homeland Security Investigation and Border Patrol. Assistant United States Attorneys Anibal J. Alaniz and Linda Requénez are prosecuting.
Google Tip Leads to 30-Year Prison SentenceRead the Press Release
FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced Alan Kendrick, 47, of Escalon, to 30 years in prison, to be followed by a lifetime term of supervised release, for his conviction of one count of receiving and distributing child pornography, United States Attorney Benjamin B. Wagner announced.
According to a criminal complaint, Google reported to the National Center for Missing & Exploited Children (NCMEC) that on December 10, 2013, six images of suspected child pornography were associated with a Google account. NCMEC referred the matter to law enforcement, and a detective with the Ceres Police Department discovered that the Google account had been accessed from residences in Modesto and Escalon. Kendrick was a registered sex offender on GPS location monitoring, and GPS records confirmed that he was at the residences when the accounts had been accessed. He admitted in a plea agreement that between June and December 2013, he received and distributed images of child pornography and also admitted that he had engaged in a pattern of abuse or exploitation of a minor.
“This case is another example of the successful partnership among the corporate, nonprofit, and law enforcement community,” said Supervisory Special Agent Todd Irinaga of the Sacramento FBI’s Modesto office. “The report of Kendrick’s illicit activity, even though he was still on parole, was immediately routed to the Sacramento Valley High Tech Crimes Task Force. The team, in conjunction with California Department of Corrections and Rehabilitation and with significant assistance from the Ceres Police Department’s High Tech Crime unit, investigated this horrible crime and ensured successful prosecution of Kendrick for his crime that victimized innocent children.”
At Kendrick’s first initial appearance in federal court on March 11, 2014, he was ordered detained as a danger to the community and a flight risk. He pleaded guilty on May 27, 2014.
This case was the result of an investigation by the Ceres Police Department and the Modesto FBI Office with assistance from the California Department of Corrections and Rehabilitation Division of Adult Parole Operations. Assistant United States Attorney David Gappa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Fort Thompson Man Charged with Assault by Strangulation and Suffocation and Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Assault by Strangulation and Suffocation and Domestic Assault by a Habitual Offender.
Santana Drapeau, age 22, was indicted on July 15, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 4, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about May 18, 2014, Drapeau unlawfully assaulted an adult female victim by strangling and suffocating her. Drapeau also unlawfully committed a domestic assault upon the same victim when he had a final conviction, on at least two separate prior occasions for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse or intimate partner.
The charges are merely accusations and Drapeau is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Drapeau was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Former Rabobank LIBOR Submitter Pleads Guilty for Scheme to Manipulate Yen LIBORRead the Press Release
A former Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank) Japanese Yen London InterBank Offered Rate (LIBOR) submitter pleaded guilty today for his role in a conspiracy to commit wire and bank fraud by manipulating Rabobank’s Yen LIBOR submissions to benefit trading positions.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division and Acting Assistant Director in Charge Timothy A. Gallagher of the FBI’s Washington Field Office made the announcement.
Paul Robson, a citizen of the United Kingdom, appeared before United States District Judge Jed S. Rakoff in the Southern District of New York and pleaded guilty to count one of a 15-count indictment returned by a federal grand jury in the Southern District on April 28, 2014. Sentencing is scheduled for June 9, 2017.
“ Paul Robson is the second employee at Rabobank, one of the world’s largest banks, to plead guilty to participating in a global fraud scheme,” said Assistant Attorney General Caldwell. “The scope of the fraud was massive, but the scheme was simple. By illegally influencing the LIBOR rates, Robson and his coconspirators rigged the markets to ensure that their trades made money. Robson’s conviction demonstrates the Department of Justice’s continued resolve to hold individuals and institutions accountable for their involvement in fraud in the financial markets.”
“Today’s guilty plea demonstrates our continuing resolve to prosecute those who fraudulently manipulated the LIBOR rate for their own personal benefit and, in doing so, undermined free and fair markets,” said Deputy Assistant Attorney General Snyder.
“Fraudulently manipulating the LIBOR has far reaching effects on international financial markets and such criminal activity will not be tolerated,” said Acting Assistant Director in Charge Gallagher. “The Washington Field Office has committed significant time and resources including the expertise of Special Agents, forensic accountants and analysts to investigate this case along with our Department of Justice colleagues. While the crimes committed are complex, their expertise demonstrates our ability to bring justice to those that choose to commit these crimes.”
Robson, along with former Rabobank Yen LIBOR derivatives traders Paul Thompson, of Australia, and Tetsuya Motomura, of Japan, was charged with conspiracy to commit wire and bank fraud as well as substantive counts of wire fraud. The indictment also alleges that the conspiracy involved numerous additional, unnamed individuals and entities. Among those individuals and entities are:· Takayuki Yagami (described in the indictment as Trader-R), a Japanese national and former Rabobank trader who pleaded guilty on June 10, 2014, in the Southern District of New York to one count of conspiracy to commit wire and bank fraud for his involvement in the conspiracy alleged in the indictment; and
· Lloyds Banking Group plc (LBG), a U.K.-based bank that, as part of a deferred prosecution agreement filed in the United States District Court for the District of Connecticut on July 28, 2014, admitted wrongdoing in connection with the alleged conspiracy’s overt acts, and agreed to pay an $86 million penalty.
According to court documents, LIBOR is an average interest rate, calculated based on submissions from leading banks around the world, reflecting the rates those banks believe they would be charged if borrowing from other banks. LIBOR serves as the primary benchmark for short-term interest rates globally and is used as a reference rate for many interest rate contracts, mortgages, credit cards, student loans and other consumer lending products. The Bank of International Settlements estimated that as of the second half of 2009, outstanding interest rate contracts were valued at approximately $450 trillion.
At the time relevant to the charges, LIBOR was published by the British Bankers’ Association (BBA), a trade association based in London. LIBOR was calculated for 10 currencies at 15 borrowing periods, known as maturities, ranging from overnight to one year. The published LIBOR “fix” for Yen LIBOR at a specific maturity is the result of a calculation based upon submissions from a panel of 16 banks, including Rabobank.
Rabobank entered into a deferred prosecution agreement with the Department of Justice on Oct. 29, 2013, and agreed to pay a $325 million penalty to resolve violations arising from Rabobank’s LIBOR submissions.
According to court documents, Robson worked as a senior trader at Rabobank’s Money Markets and Short Term Forwards desk in London and also served as Rabobank’s primary submitter of Yen LIBOR to the BBA; Thompson was Rabobank’s head of Money Market and Derivatives Trading Northeast Asia and worked in Singapore; Motomura was a senior trader at Rabobank’s Tokyo desk who supervised money market and derivative traders; and Yagami worked as a senior trader at Rabobank’s Money Market/FX Forwards desks in Tokyo and elsewhere in Asia.
Robson’s main role in the conspiracy was to submit Yen LIBOR rates at the requests of traders, including Thompson, Motomura and Yagami, who entered into derivatives contracts containing Yen LIBOR as a price component . T he profit and loss that flowed from those contracts was directly affected by the relevant Yen LIBOR on certain dates. If the relevant Yen LIBOR moved in the direction favorable to the defendants’ positions, Rabobank and the defendants benefitted at the expense of the counterparties. When LIBOR moved in the opposite direction, the defendants and Rabobank stood to lose money to their counterparties.
As alleged in court filings, from about May 2006 to at least January 2011, the four defendants, a Yen LIBOR submitter at LBG, and others agreed to make false and fraudulent Yen LIBOR submissions for the benefit of selected trading positions. According to the allegations, sometimes Robson submitted rates at a specific level requested by a co-defendant or other traders, and at other times Robson made a higher or lower Yen LIBOR submission consistent with the direction requested by a co-defendant or other traders.
For example, according to court filings, on Sept. 21, 2007, Yagami asked Robson by email, “where do you think today’s libors are? If you can I would like 1mth higher today.” Robson responded, “bookies reckon .85,” to which Yagami replied, “I have some fixings in 1mth so would appreciate if you can put it higher mate.” Robson answered, “no prob mate let me know your level.” After Yagami asked for “0.90% for 1mth,” Robson confirmed, “sure no prob[ ] I’ll probably get a few phone calls but no worries mate… there’s bigger crooks in the market than us guys!”
Robson admitted that he accommodated the requests of his co-defendants and other traders. For example, on Sept. 21, 2007, after Robson allegedly received a request from Yagami for a high one-month Yen LIBOR, Rabobank submitted a one-month Yen LIBOR rate of 0.90, which was seven basis points higher than the previous day and five basis points above where Robson said that “bookies” predicted it, and which moved Rabobank’s submission from the middle to the highest of the panel.
According to court documents, the defendants were also aware that they were making false or fraudulent Yen LIBOR submissions. For example, on May 10, 2006, Robson admitted in an email to Yagami that “it must be pretty embarrasing to set such a low libor. I was very embarrased to set my 6 mth – but wanted to help thomo [Thompson]. Tomorrow it will be more like 33 from me.” At times, Robson referred to the submissions that he submitted on behalf of his co-defendants as “ridiculously high” and “obscenely high,” and acknowledged that his submissions would be so out of line with the other Yen LIBOR panel banks that he might receive a phone call about them from the BBA or Thomson Reuters.
On numerous occasions, Robson also passed along such requests to the LBG submitter, who altered LBG’s Yen LIBOR submission accordingly if doing so did not adversely affect selected trading positions at LBG. Likewise, the LBG setter sent requests to Robson and he generally altered Rabobank’s Yen LIBOR to satisfy the requests. For example, on July 28, 2006, Robson wrote to the LBG submitter: “morning skipper.....will be setting an obscenely high 1m again today...poss 38 just fyi.” The LBG submitter responded: “(K)...oh dear..my poor customers....hehehe!! manual input libors again today then!!!!” Both banks’ submissions on July 28 moved up one basis point, from 0.37 to 0.38. As the LBG submitter explained, according to court documents filed in connection with Rabobank’s deferred prosecution agreement, to other LBG submitters, “We usually try and help each other out…but only if it suits.”
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The investigation is being conducted by special agents, forensic accountants, and intelligence analysts in the FBI’s Washington Field Office. The prosecution is being handled by Senior Litigation Counsel Carol L. Sipperly and Trial Attorney Brian R. Young of the Criminal Division’s Fraud Section, and Trial Attorney Michael T. Koenig of the Antitrust Division. The Criminal Division’s Office of International Affairs has provided assistance in this matter.
The Justice Department expresses its appreciation for the assistance provided by various enforcement agencies in the United States and abroad. The Commodity Futures Trading Commission’s Division of Enforcement referred this matter to the department and, along with the U.K. Financial Conduct Authority, has played a major role in the LIBOR investigation. The Securities and Exchange Commission also has played a significant role in the LIBOR series of investigations, and the department expresses its appreciation to the United Kingdom’s Serious Fraud Office for its assistance and ongoing cooperation. The department has worked closely with the Dutch Public Prosecution Service and the Dutch Central Bank in the investigation of Rabobank. Various agencies and enforcement authorities from other nations are also participating in different aspects of the broader investigation relating to LIBOR and other benchmark rates, and the department is grateful for their cooperation and assistance.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.com.Former Patriarch of the Lorenzana Drug Trafficking Organization Pleads Guilty to Drug Conspiracy ChargesRead the Press Release
Waldemar Lorenzana Sr., 75, the patriarch of the Lorenzana drug trafficking organization in Guatemala, pleaded guilty today to conspiracy to import over 450 kilograms of cocaine into the United States.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting Special Agent in Charge Robert W. Patterson of the Drug Enforcement Agency’s (DEA) Special Operations Division made the announcement. The guilty plea was entered by U.S. District Judge Colleen Kollar-Kotelly in the District of Columbia.
“For more than a decade, the Lorenzana drug trafficking operation received, stored, and transported massive quantities of cocaine for distribution in the United States,” said Assistant Attorney General Caldwell. “The kingpin and patriarch of this family has now been extradited and convicted in the United States, and two of his sons are currently awaiting extradition from Guatemala. This case once again affirms the Justice Department’s unwavering commitment to working with our international law enforcement partners to bring transnational drug traffickers, wherever they may reside, to justice for their crimes.”
“For years, members of the Lorenzana family smuggled cocaine to the United States with impunity,” said Acting Special Agent in Charge Patterson. “The indictment, extradition and conviction of Waldemar Lorenzana, and the pending extradition of other members of his family, proves once again that no one is above the law when international partners cooperate. This investigation could never have been brought to fruition without the unwavering support of our law enforcement colleagues and is another great example of international coordination.”
According to the superseding indictment, from March 1996 to April 2009, Lorenzana Sr. and three of his sons conspired to distribute multi-ton quantities of cocaine within Guatemala and elsewhere, knowing that the narcotics would be illegally imported into the United States for distribution. As described in further court documents, the Lorenzana drug trafficking organization worked with drug trafficking organizations in Colombia and Mexico to transport shipments of cocaine by go-fast boats and airplanes to El Salvador and Guatemala for distribution to cities within the United States. Lorenzana Sr. was arrested by Guatemalan authorities on April 26, 2011, detained in Guatemala, and extradited to the United States in March 2014. Sentencing will be scheduled at a later date.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The investigation was led by the DEA’s 959/Bilateral Investigations Unit and Guatemala City Country Office and was part of the Organized Crime Drug Enforcement Task Force. The case is being prosecuted by Trial Attorneys Amanda Liskamm, Adrian Rosales and Michael Lang of the Criminal Division’s Narcotic and Dangerous Drug Section. The Criminal Division’s Office of International Affairs provided significant assistance in the extradition. The Department expresses its gratitude and appreciation to the government of Guatemala for its assistance in this matter.Drug Trafficker Sentenced to 17.5 Years in PrisonRead the Press Release
PHOENIX – On Aug. 18, 2014, Luis Enrique Villegas-Lugo, 40, of Culiacan, Sinaloa, Mexico was sentenced by Senior U.S. District Judge Roslyn O. Silverto 17.5 years in prison. Villegas-Lugo pleaded guilty on Feb. 25, 2014 to conspiracy to possess with intent to distribute 500 grams or more of methamphetamine, a felony.
The Organized Crime Drug Enforcement Task Force investigation into the Villegas-Lugo Drug Trafficking Organization (DTO) took place from July 2006 through September 2006 in Phoenix. On Feb. 25, 2009, the defendant was charged with conspiring to possess with the intent to distribute methamphetamine, possessing methamphetamine, and possessing firearms in furtherance of the drug trafficking business. The evidence showed that the DTO imported methamphetamine from Mexico into the United States and transported it to a stash house in Phoenix. Once there, the methamphetamine was distributed to customers. During the investigation, law enforcement agents seized approximately 20 pounds of methamphetamine, two handguns, two rifles, and drug packaging materials from the stash house.
The investigation in this case was conducted by the Drug Enforcement Administration, the Phoenix Police Department, the Maricopa County Sheriff’s Office, and the Surprise Police Department. The prosecution was handled by Jonell L. Lucca, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-09-00210-001-PHX-ROS
RELEASE NUMBER: 2014-046_Villegas-LugoFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Drug Courier Found in Fresno County with over 8 Pounds of Heroin SentencedRead the Press Release
FRESNO, Calif. —Ana Lilia Angulo, aka Ana Lilia Ochoa Angulo, 30, of San Jose, was sentenced today to three years and five months in prison, to be followed by five years of supervised release, for conspiring to distribute and to possess with intent to distribute 8.8 pounds of heroin, United States Attorney Benjamin B. Wagner announced.
According to court documents, Fresno County sheriff detectives stopped Angulo for a traffic violation while she was driving a vehicle northbound on Interstate 5. During the stop, the detectives found several packages of heroin weighing 8.8 pounds behind the arm rest panel of the rear passenger seat near where Angulo’s infant child was sitting in a car seat. The heroin had a wholesale value of approximately $88,000 to $96,000. Angulo admitted that she was paid $2,500 per trip to transport the drug and that she was on her third trip.
This case was the product of an investigation by the U.S. Drug Enforcement Administration and the Fresno County Sheriff’s Office. Assistant United States Attorney Karen Escobar prosecuted the case.
Detroit Man to Serve More Than Five Years for Heroin PossessionRead the Press Release
Huntington, W.Va. – Alton Tribble, 37, of Detroit, Michigan was sentenced in federal court in Huntington today to five years and three months’ in federal prison. Tribble previously pled guilty in April of 2014 to possession with intent to distribute heroin. On December 26, 2013, members of the Huntington Police Department searched a residence at 917 21st Street in Huntington used by Tribble to store heroin he intended to sell in the Huntington area. Police seized heroin, a .32 caliber semi-automatic pistol, and a set of digital scales.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Defendants Sentenced in Mortgage Fraud SchemeRead the Press Release
DALLAS — Four Dallas-area individuals, along with a defendant from Georgia, who were convicted for their roles in a mortgage fraud scheme that caused more than $3 million in losses to lenders, have been sentenced, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
On Friday, August 15, Jarrod Jamiel Williams, 35, most recently of McKinney, Texas, was sentenced by U.S. District Judge Barbara M. G. Lynn to 87 months in federal prison and ordered to pay approximately $3.6 million in restitution. He pleaded guilty in January 2014 to one count of conspiracy to commit wire fraud affecting a financial institution.
Williams has been in custody since June 2012 on charges stemming from a foreclosure-rescue scheme that was prosecuted in the Eastern District of Texas and for which he was sentenced to 57 months imprisonment. Judge Lynn ordered that 27 months of Williams’s sentence in the Dallas case would run concurrently with the Eastern District of Texas sentence with the remaining 60 months to run consecutively. It total, between the two different fraud schemes, Williams will serve 117 months in federal custody and was ordered to pay more than $5 million in restitution.
Other defendants convicted and sentenced for their role in the scheme include Christopher Davis Allen, 42, and his ex-wife, Cheryl Renee Allen, 51, who were each sentenced in June 2014 to 42 months in federal prison and ordered to pay approximately $3.6 million in restitution. Arzonda Murchison, 43, was sentenced in March 2014 to 36 months in federal prison and ordered to pay approximately $2.8 million in restitution. Aaron Robert Martell, of Georgia, was sentenced in May 2014 to 21 months in federal prison and ordered to pay approximately $1.3 million in restitution. Each pleaded guilty to one count of conspiracy to commit wire fraud affecting a financial institution.
From March 2006 to at least February 2008, Williams, a real estate investor who owned Jade Capital Group, along with escrow officers/loan processors/notaries Christopher and Cheryl Allen, title company owner, Murchison, and recruiter, Martell, engaged in the fraud scheme by facilitating fraudulent property transactions to obtain mortgage loans for residential real estate properties.
Part of the defendants’ scheme involved submitting false and fraudulent statements on loan applications and other closing documents to obtain proceeds from the transactions and making more false statements and material omissions regarding the disbursement of monies.
Williams recruited, or caused others to recruit, straw buyers to purchase the properties, knowing the purchasers buying the properties could not quality for the loans without making false statements on loan applications and other closing documents. Williams also knew that payments were made to straw buyers outside of closing.
As an example of the mortgage fraud scheme, Williams and Martel recruited an individual to purchase a residential property located on Dartmouth Avenue in Highland Park, Texas, knowing that the individual could not qualify for the necessary loans without making false statements concerning income, assets and intention to occupy the property. Williams referred the individual to Cheryl Allen who prepared the fraudulent loan applications. Chris Allen notarized the documents and assisted in the closing of the transaction, which occurred at Viewpoint Title, a company owned and operated by Murchison. Not only were the loan applications false, the closing documents falsely represented that the borrower made a $270,000 down payment when, in fact, that money was supplied by Williams. In addition, Williams, along with coconspirators, created a fraudulent check that purported to show the down payment coming directly from the borrower. At closing, Williams received more than $800,000 from Viewpoint Title as proceeds from the transaction, which were disbursed among the coconspirators. Because of the false statements on the documents, the lender approved two interstate wire transfers of approximately $2.1 million and $270,000 to fund the mortgage for the individual.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.gov
The FBI investigated the case. The FBI and the U.S. Attorney’s Office received assistance from the Texas Appraiser Licensing and Certification Board in connection with the investigation. Assistant U.S. Attorney J. Nicholas Bunch prosecuted.
Dallas Man Sentenced to Serve 25 Years in Federal Prison on Drug Trafficking and Money Laundering ConvictionsRead the Press Release
DALLAS — A Dallas man who pleaded guilty to felony offenses stemming from his role as a major participant in a marijuana distribution conspiracy operating in north Texas was sentenced this morning in federal court in Dallas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas
Andres Hernandez, Jr., a/k/a “Gordo,” 34, was sentenced by U.S. District Judge Sam A. Lindsay to serve a total of 300 months in federal prison. Hernandez pleaded guilty in September 2013 to one count of conspiracy to distribute 100 kilograms or more of marijuana and one count of money laundering. Judge Lindsay sentenced him to 25 years on the drug conspiracy conviction and 10 years on the money laundering conviction, to run concurrently.
Hernandez and others were arrested on November 1, 2012, following a law enforcement operation led by the Drug Enforcement Administration (DEA) and the North Texas High Intensity Drug Trafficking Area (HIDTA) task force, during which federal search warrants were executed at various locations, including Hernandez’s residence on W. Colorado Blvd. in Dallas. At his residence, law enforcement located approximately 20 pounds of marijuana, digital scales and a loaded firearm. Hernandez has remained in custody since his arrest.
According to documents filed in the case, Hernandez admitted that on multiple occasions between January 2011 and the date of his arrest, he received multi-pound quantities of marijuana from several supply sources, including co-defendants Serviano Contreras, a/k/a “Seven” and “Junior,” 27, and Virgilio Espinosa Delacruz, a/k/a “Chaparro,” 41. Hernandez admitted that he stored this marijuana both at his residence and at the residence of co-defendant Benicio Pena, Jr., a/k/a “Nene,” 63, on Lourdes Street in Dallas. Contreras, Delacruz and Pena pleaded guilty to their respective roles in the conspiracy and are serving federal prison sentences of 48 months, 44 months, and 42 months, respectively.
Hernandez admitted that he routinely distributed multi-pound quantities of marijuana to co-defendants Jarvis Holmes, 43; Claudia Castillo, 21; Jerry Cardenas, 32; Lamont Morgan, 35; Roberto Lopez Delacruz, 27; and Paul Santoy, 28. They each pleaded guilty to their roles in the conspiracy. Holmes was sentenced to 51 months; Cardenas, 48 months; Morgan, 46 months; Roberto Delacruz, 16 months; and Santoy, 15 months. Claudio Castillo is scheduled to be sentenced on November 17, 2014.
Hernandez further admitted that in March 2012, an individual purchased a parcel of land located in Barry, Texas, using $28,854 in cash provided by Andres Hernandez’s wife, Griselda Hernandez, 34. That same day, that individual deeded the property to Andres and Griselda Hernandez. Andres Hernandez admitted that the cash used to purchase the property included drug proceeds. Griselda Hernandez also pleaded guilty to her role in the conspiracy and was sentenced to 57 months in federal prison.
The DEA, North Texas HIDTA and Internal Revenue Service Criminal Investigation investigated. Assistant U.S. Attorney Phelesa Guy was in charge of the prosecution.
Confessed Heroin Dealers SentencedRead the Press Release
DALLAS — Two confessed heroin dealers were sentenced this morning in federal court in Dallas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Misael Perla, a/k/a “Irving” and “Weasal,” 26, of Dallas, was sentenced by U.S. District Judge David C. Godbey to 300 months in federal prison. Perla pleaded guilty in January 2014 to two counts of possession of heroin with intent to distribute, the use of which caused the death of victims Alexandra Julia Moreno, 20, of Irving, Texas, in July 2012, and Cassidy Seward, 18, of Grapevine, Texas, in August 2012.
Hugo Sanchez, a/k/a “Juice,” 25, also of Dallas, was sentenced by Judge Godbey to an aggregate sentence of 360 months in federal prison. Sanchez pleaded guilty in April 2014 to seven counts of a superseding indictment including: one count of conspiracy to possess with intent to distribute a controlled substance; possession of heroin with intent to distribute and distribution to a person under age 21; possession of cocaine with intent to distribute; possession of heroin with intent to distribute; possession of methamphetamine with intent to distribute; possession of a firearm by a prohibited person and possession of a firearm in furtherance of a drug-trafficking offense. Although Sanchez did not admit his role in providing the narcotics that resulted in several overdose deaths, the Court heard evidence that Sanchez provided narcotics that were responsible for at least three known overdose deaths in 2011 and 2012.
“Often drug users are seen as victims of their own choices. Today, however, in federal court, two drug dealers who preyed upon those addictions, faced the families who have been forever harmed because of their actions,” said U.S. Attorney Saldaña. “While we cannot replace the young lives that were lost to heroin and other dangerous drugs, this office will continue to hold those accountable who make those poisons available in our communities.”
According to documents filed in the case, Perla admitted that on July 16, 2013, he knowingly distributed heroin to Ms. Moreno, a woman he had recently met at a club. Perla provided the heroin to Ms. Moreno while she was staying with him at his mother’s home and he watched as she used the heroin in his presence. Later that evening and into the next morning, Perla attempted to wake Ms. Moreno, and he became concerned that she may have overdosed. He put her into the bed of a truck, drove to Baylor Medical Center at Irving and left her body with medical personnel at the emergency room. Ms. Moreno was pronounced dead shortly after her arrival at the hospital, and a subsequent autopsy report concluded that she “died as the result of the toxic effects of heroin.”
Perla also admitted in the factual resume that he had a relationship with Cassidy Seward, to whom he knowingly supplied heroin. After returning home one morning in August 2012, Ms. Seward used heroin provided by Perla and methamphetamine from Sanchez. After her family found her unresponsive, paramedics arrived and transported Ms. Seward to the hospital, where she was soon pronounced dead. A subsequent autopsy report concluded that she died from the “mixed drug toxicity” of heroin and methamphetamine.
According to documents filed in the case, Hugo Sanchez admitted to possessing heroin, cocaine, and methamphetamine with the intent to further distribute, as well as possessing numerous firearms in furtherance of his drug-trafficking activities. Additional documents filed in the case tied Sanchez’s narcotics to the 2011 and 2012 overdose deaths of Robert Nugent II, Henry Wiley II, and Solina Marin, all residents of the DFW Metroplex.
The Irving Police Department and the Grapevine Police Department led the investigation, with assistance from U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Assistant U.S. Attorney Jason Schall prosecuted.
Clinton Woman Sentenced in $2.3 Million Government Contract Fraud SchemeRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Larayne Whitehead, age 35, of Clinton, Maryland, today to 18 months in prison followed by five years of supervised release for conspiring to commit wire fraud in connection with a scheme to defraud businesses which supplied goods under government contracts. Judge Grimm also entered an order that Whitehead forfeit and pay restitution of $2,361,042.11 and a car.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to her plea agreement, from December 2007 to May 2013, Whitehead and her co-conspirators used at least 15 businesses in Maryland, Delaware, Georgia, Nevada, North Carolina and Tennessee which they incorporated to bid on contracts to provide goods – such as books, snowmobiles, plants and paint – to government agencies. Most of the contracts were awarded using an online marketplace to compete for federal contracts. The conspirators often submitted extremely low bids to secure the contracts. Once awarded the contracts, Whitehead enticed victim businesses to supply the goods required by contract and promised to pay these subcontractors after the government paid Whitehead. Whitehead, however, fraudulently retained the government payments for her own personal benefit and did not pay the subcontractors.
The conspirators typically operated under a particular business name for six to 12 months until the business was either disqualified from the online marketplace or was otherwise burdened with lawsuits or liens. The conspirators then continued the scheme under a newly-registered business name.
As a result of the scheme, Whitehead and co-conspirator Christopher Johnson received at least 144 bank deposits from governmental agencies totaling approximately $2,321,058.95 which was reasonably foreseeable to Whitehead. The scheme involved between 50 and 250 business victims.
In addition, on June 28, July 16 and August 10, 2010, Whitehead submitted duplicate charges to a government credit card that the Department of Homeland Security had provided to her to pay for goods provided pursuant to a government contract. The resulting loss to the federal government was $39,983.16.
Christopher Johnson, age 36, of Clinton, Maryland previously pleaded guilty to his participation in the scheme. Johnson was sentenced on July 21, 2014 to 18 months in prison and ordered to pay restitution of $426,376.99.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys= Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrate the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant U.S. Attorney Bryan E. Foreman, who prosecuted the case.Clinton Woman Sentenced in $2.3 Million Government Contract Fraud SchemeRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Larayne Whitehead, age 35, of Clinton, Maryland, today to 18 months in prison followed by three years of supervised release for conspiring to commit wire fraud in connection with a scheme to defraud businesses which supplied goods under government contracts. Judge Williams also entered an order that Whitehead forfeit $2,393,579 and a car.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to her plea agreement, from December 2007 to May 2013, Whitehead and her co-conspirators used at least 15 businesses in Maryland, Delaware, Georgia, Nevada, North Carolina and Tennessee which they incorporated to bid on contracts to provide goods – such as books, snowmobiles, plants and paint – to government agencies. Most of the contracts were awarded using an online marketplace to compete for federal contracts. The conspirators often submitted extremely low bids to secure the contracts. Once awarded the contracts, Whitehead enticed victim businesses to supply the goods required by contract and promised to pay these subcontractors after the government paid Whitehead. Whitehead, however, fraudulently retained the government payments for her own personal benefit and did not pay the subcontractors.
The conspirators typically operated under a particular business name for six to 12 months until the business was either disqualified from the online marketplace or was otherwise burdened with lawsuits or liens. The conspirators then continued the scheme under a newly-registered business name.
As a result of the scheme, Whitehead and co-conspirator Christopher Johnson received at least 144 bank deposits from governmental agencies totaling approximately $2,321,058.95 which was reasonably foreseeable to Whitehead. The scheme involved between 50 and 250 business victims.
In addition, on June 28, July 16 and August 10, 2010, Whitehead submitted duplicate charges to a government credit card that the Department of Homeland Security had provided to her to pay for goods provided pursuant to a government contract. The resulting loss to the federal government was $39,983.16.
Christopher Johnson, age 36, of Clinton, Maryland previously pleaded guilty to his participation in the scheme. Johnson was sentenced on July 21, 2014 to 18 months in prison and ordered to pay restitution of $426,376.99.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force - chaired by Assistant Attorney General for the Criminal Division Lanny A. Breuer - includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrate the Department of Justice=s commitment to helping ensure the integrity of the government procurement process.United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant U.S. Attorney Bryan E. Foreman, who prosecuted the case.
Cherry Creek Man Charged with Possession of Sawed-Off Shotgun and Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a Cherry Creek, South Dakota, man has been indicted by a federal grand jury for Possession of a Sawed-Off Shotgun and Assault with a Dangerous Weapon.
Kelly Joe Romero, age 26, was indicted on July 17, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 30, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Romero is alleged to have pulled and pointed a sawed-off shotgun at the victim in Cherry Creek in May of 2013.
The charges are merely accusations and Romero is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Romero was remanded to the custody of the U.S. Marshals Service. Trial has not been set.
Chemical Firm Admits to Violating Clean Air Act by Failing to Develop and Implement Risk Storage Plan at Former Pawtucket FacilityRead the Press Release
PROVIDENCE, R.I. – Roberts Chemical Company, Inc. pleaded guilty in federal court in Providence today to violating the Clean Air Act by failing to develop and implement a Risk Management Plan to minimize the chance of release of ethyl ether from its former Pawtucket, R.I., facility, and to protect workers, the community and emergency and first responders in the event of a release or fire involving ethyl ether. Environmental Protection Agency (EPA) regulations require a company’s Risk Management Plan include a “worst case” response plan.
Roberts Chemical Company, Inc., now located in Attleboro, Mass., is in the business of storing, distributing and repackaging chemicals, some of which are designated as extremely hazardous.
Ethyl ether is a volatile, extremely flammable liquid chemical. EPA regulations require facilities storing more than 10,000 lbs. of ethyl ether to develop and implement a Risk Management Plan. An investigation by EPA determined that in November and December 2008, Roberts Chemical Company, Inc. failed to develop and implement a Risk Management Plan while storing 27,467 lbs. of ethyl ether at their former facility at 258 Pine Street in Pawtucket.
The guilty plea was announced by the United States Attorney’s Office in Rhode Island and the Environmental Protection Agency Criminal Investigation Division Boston Area Office.
A sentencing hearing before U.S. District Court Judge John J. McConnell, Jr. has not been scheduled. A plea agreement filed with the court stipulates that at sentencing the Government and Roberts Chemical Company, Inc. will recommend the court impose a fine of $200,000. In addition, according to the plea agreement, Roberts Chemical Company, Inc. is required to issue a public apology.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Cedar Rapids Man Pleads Guilty to Producing and Selling Counterfeit DVDs and CDsRead the Press Release
A man who produced and had for sale thousands of counterfeit movie DVDs and music CDs pled guilty today in federal court in Cedar Rapids.
Steven Brown, 45, from Cedar Rapids, Iowa, was convicted of one count of copyright infringement.
At the plea hearing, Brown admitted that between December 2012 and February 2013, he produced and offered for sale 1,510 counterfeit DVDs and 492 counterfeit CDs. Brown further admitted that these counterfeit goods had a total retail value of more than $25,000.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Brown remains free on conditions of supervision set by the Court pending sentencing. Brown faces a possible maximum sentence of five years’ imprisonment, a $250,000 fine, $100 in special assessments, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Department of Homeland Security.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 14-CR-00080.
Carondelet Health Network to Pay $35 Million to Resolve False Claims Allegations Involving St. Joseph’s and St. Mary’s Hospitals in TucsonRead the Press Release
TUCSON, Ariz. – Carondelet Health Network, an Arizona non-profit corporation doing business as Carondelet St. Mary’s Hospital and Carondelet St. Joseph’s Hospital in Tucson, Ariz., has agreed to pay the United States $35,000,000 to resolve civil allegations that the hospitals violated the federal False Claims Act by submitting false bills to Medicare and other federal health care programs.
“This settlement is the largest-ever False Claims Act recovery in Arizona, and it reflects the longstanding and ongoing efforts of our office to guard the vital but limited funding of federal health care programs,” said United States Attorney John S. Leonardo. “Inpatient rehabilitation services are very costly to taxpayers, and it is critical that these federal dollars be reserved only for those qualified patients who need the intense rehabilitation therapy services provided in an inpatient setting.”“This settlement shows OIG’s hard work to safeguard the taxpayer dollars,” said Glenn R. Ferry, Special Agent in Charge for the Los Angeles Region of the United States Department of Health and Human Services, Office of Inspector General. “Health care fraud victimizes both patients and the American taxpayers, and we are dedicated to investigating and prosecuting these types of activities.”
The settlement agreement resolves allegations that from April 7, 2004, through Dec. 31, 2011, Carondelet St. Mary’s Hospital and Carondelet St. Joseph’s Hospital billed Medicare, the Federal Employees Health Benefit Program, and the Arizona Health Care Cost Containment System (Arizona’s Medicaid agency) for inpatient rehabilitation facility services that were not properly reimbursable under applicable coverage criteria because the patients were not appropriate for inpatient rehabilitation facility services. The United States alleged that as a result of these false claims, federal health care programs paid substantially more than was warranted.
Shortly before becoming aware of the United States’ investigation, Carondelet disclosed to the government some inpatient rehabilitation overpayments and tendered a substantial repayment. However, based on its investigation, the United States had concerns about the nature of Carondelet’s disclosure, including concerns that the disclosure and the repayment Carondelet tendered were not timely, complete, or adequate. Despite these concerns, the United States considered Carondelet’s efforts in this regard as one of several factors in reaching the settlement amount and the resolution of the case. The settlement is neither an admission of liability by the hospitals, nor is it a concession by the United States that its claims are not well founded.
The settlement resolves a lawsuit filed in November 2011 by Jacqueline Bloink under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery obtained. The case was filed in the United States District Court for the District of Arizona and is captioned United States ex rel. Bloink v. Carondelet Health Network, et al., (CV-11-721-TUC-FRZ). Ms. Bloink will receive a share of the settlement payment that resolves the qui tam suit she filed.
The case was investigated by the United States Attorney’s Office for the District of Arizona; the United States Department of Health and Human Services, Office of Inspector General; and the United States Office of Personnel Management, Office of Inspector General.
Individuals with information regarding fraud, waste, or abuse related to Medicare or other federal programs are encouraged to file a complaint with the United States Attorney’s Office through the office’s website, http://www.justice.gov/usao/az/, or by calling (602) 514-7500.
Attachment: Carondelet Settlement Agreement (PDF)
RELEASE NUMBER: 2014-047_Carondelet
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Buffalo Man Sentenced for Selling Counterfeit CurrencyRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Novel Rogers, 26, of Buffalo, N.Y., who was convicted of selling counterfeit currency, was sentenced to time served and three months home confinement by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney MaryEllen Kresse, who handled the case, stated that during an approximately two month period in 2013, Rogers manufactured over $20,000 in counterfeit currency. The defendant then sold approximately $6,000 of the currency with the intent that it be passed as true and genuine.
The sentencing is the result of an investigation by Special Agents from the United States Secret Service, under the direction of Special Agent in Charge Tracy Gast.Bombing of District Attorney's Office Results in Federal Prison SentenceRead the Press Release
MEDFORD, Ore. – Alan Leroy McVay, 47, of Medford, Oregon was sentenced to 15 years in federal prison by Senior U.S. District Judge Owen M. Panner after his conviction for malicious destruction of property by explosion for the bombing of the Jackson County District Attorney’s Office. The court also ordered McVay to pay $14,854.20 in restitution to Jackson County for the damage to the District Attorney’s office.
On November 13, 2013, McVay assembled a bomb by attaching a CO2 metal cylinder filled with gunpowder to a propane tank and inserted a fuse into the CO2 cylinder as a means of detonating the tank. McVay wanted to destroy the District Attorney’s office in order to delay his plea and sentencing in state court scheduled for the following day. McVay had been charged in state court with committing four residential burglaries and being a felon in possession of a firearm.
At approximately 4:30 a.m., McVay took the bomb to the District Attorney’s office, lit the fuse and attempted to throw it through an office window, but it was held on the window sill by an office blind, preventing it from completely entering the office. The CO2 cylinder exploded, puncturing a hole in the propane tank resulting in fire spewing from the tank. The device was blown just outside the broken window and was on fire when police and fire personnel arrived on the scene. The explosion broke other exterior windows and debris was blown both in and outside the building. Immediately following the explosion, it was unknown whether there were other explosive devices in the area, whether a specific prosecutor or the entire office was being targeted and whether there were other targets. Police began checking other government buildings, residences of the prosecutors and judges, and the state circuit court was closed that morning. The District Attorney’s office remained inaccessible for two days.
Several days later, detectives and federal agents received a tip that McVay was believed to have committed the bombing. Following up on the tip, they determined that McVay and his codefendant in the state case, who had already been sentenced, had several telephone conversations. Recordings of those conversations revealed McVay talking before the bombing about having “some things to do it with,” “[getting] rid of all kinds of paper from the ground up” and “it’ll be fun” and “you’ll hear about it.” After the bombing, McVay mentioned about somebody blowing up the District Attorney’s office and it was “funny shit.” They also determined McVay was in the vicinity of the District Attorney’s office during the early morning hours of the bombing. Later, search warrants for McVay’s pickup and residence uncovered containers of gun powder, bullets separated from cartridges and the exact type of tape on the explosive device used in the bombing. When McVay was arrested and confronted with all the evidence the police had accumulated against him, McVay confessed to the bombing.
Judge Panner agreed that the use of the destructive device in an attempt to destroy the District Attorney’s office and the significant disruption it caused to that office and the Jackson County criminal justice system warranted the enhanced 15 year sentence. As part of McVay’s federal guilty plea, he will also enter guilty pleas to the four residential burglaries and being a felon in possession of a firearm in state court with those sentences to be served concurrent with his federal sentence.
U.S. Attorney Amanda Marshall commended both local and federal law enforcement for their thorough and effective investigation in quickly solving the bombing of the District Attorney’s office. She also said, “Any attack on the criminal justice system will not be tolerated” and “if the District Attorney’s office had been destroyed or anyone injured, the consequences for the attack would have been even more severe.”
This case was investigated by the Medford Police Department, the Oregon State Police, the FBI and ATF. The case was prosecuted by Assistant U.S. Attorney Byron Chatfield.
Baton Rouge Woman Sentenced to Lengthy Prison Term for Her Role in Multi-million Dollar Medicare Fraud SchemeRead the Press Release
BATON ROUGE, LA – An owner and operator of community mental health centers in Baton Rouge, Louisiana, and Houston, Texas, was sentenced today to serve more than eight years in prison for her role in an extensive Medicare fraud scheme. Chief U.S. District Court Judge Brian A. Jackson sentenced HOOR NAZ JAFRI, age 54, of Baton Rouge, Louisiana, to one hundred and two (102) months in federal prison, to be followed by a three-year term of supervised release. JAFRI was also ordered to pay restitution in the amount of $43,528,584 and will be required to forfeit all proceeds from the fraudulent scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney for the Middle District of Louisiana Walt Green, Special Agent in Charge Mike Fields of the Dallas Region of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG), Special Agent in Charge Michael Anderson of the FBI’s New Orleans Division, and Louisiana State Attorney General Buddy Caldwell made the announcement. JAFRI had previously pled guilty to Count One of a Superseding Indictment, charging her with conspiracy to commit health care fraud, in violation of Title 18, United States Code, Section 1349, and Count Eleven, charging her with conspiracy to pay and receive health care kickbacks, in violation of Title 18, United States Code, Section 371.
According to documents filed in the case, the investigation into three community mental health centers - Shifa Community Mental Health Center of Baton Rouge, Serenity Center of Baton Rouge, and Shifa Community Mental Health Center of Texas - was opened in 2011, and since then has resulted in the convictions of seventeen (17) individuals employed by the facilities, including therapists, marketers, administrators, owners and the medical director. Over a period of approximately seven years, the companies billed Medicare for partial hospitalization program services for the mentally ill that were unnecessary or never provided. The companies, collectively, submitted more than $258 million in claims to Medicare during this period. Medicare paid approximately $43.5 million on those claims.
JAFRI was an owner of all three facilities and a marketer for Shifa and Serenity in Baton Rouge. JAFRI was also part owner of two affiliated residential facilities; patients who lived at these apartments were required to attend the programs at Shifa and Serenity, regardless of whether these patients actually needed or desired the services. As a marketer for Shifa and Serenity, JAFRI caused patients to be admitted to the facilities who were inappropriate for the services. JAFRI directed administrators and therapists at these facilities to falsify records for treatment that patients did not in fact receive. JAFRI also authorized $1,500 per week to be paid in cash to a recruiter in Houston, Texas so that the recruiter would direct patients to attend the partial hospitalization program at Shifa Texas. The recruiter, in turn, paid each patient $75 per week to attend the program.
The case is being investigated by HHS-OIG, the FBI, and the Medicaid Fraud Control Unit of the Louisiana Attorney General’s Office, 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 Middle District of Louisiana. The case is being prosecuted by Trial Attorneys Abigail Taylor and Dustin M. Davis of the Criminal Division’s Fraud Section and Assistant United States Attorney Shubhra Shivpuri of the U.S. Attorney’s Office for the Middle District of Louisiana.
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 Team (HEAT), go to: www.stopmedicarefraud.gov.
Bank Executive Arrested for Insider TradingAllegedly Tipped Off Friend at Country Club About Bank AcquisitionRead the Press Release
BOSTON - A former executive of Boston-based Eastern Bank Corp. was arrested and charged today with participating in an insider trading conspiracy.
It is alleged that John Patrick O’Neill, 64, of Belmont, secretly tipped off a friend about the sale of Wainwright Bank & Trust Company, which was acquired by Eastern Bank in 2010. Prior to the acquisition, shares of Wainwright traded on the Nasdaq Stock Market.
O’Neill, who was a Senior Vice President and Senior Credit Officer at Eastern Bank, is charged with conspiracy to commit securities fraud. He was a member of Eastern Bank’s due diligence team that evaluated the Wainwright acquisition in the weeks leading up to the deal.
It is alleged that O’Neill tipped his friend (“CC-1”) to Wainwright’s sale over the weekend of June 11, 2010, more than two weeks before the acquisition was publicly announced, during a face-to-face encounter at the Watertown country club where both men are members. On the next trading day, O’Neill’s friend called his broker to ask how he could buy 25,000 shares of Wainwright stock, which he acknowledged “kinda sounds crazy,” given how thinly the stock traded. CC-1 ultimately purchased a total of 31,000 Wainwright shares over the next two weeks, at prices between $8.85 and $9.90 per share, single-handedly accounting for some 56% of the total trading volume in Wainwright shares during that period. On June 29, 2010, Eastern Bank announced its agreement to acquire Wainwright for $19 per share in cash, a premium of nearly 100% over the stock’s prior closing price. CC-1 ultimately sold his shares for a profit of more than $300,000.
United States Attorney Carmen M. Ortiz said, “Insider trading is a serious crime that undermines the integrity of our financial markets. Corporate executives who misuse their access to confidential information to benefit themselves or their friends are simply stealing from thousands of Americans who invest their savings in the stock market without that inside knowledge. We will continue to aggressively investigate and prosecute this kind of behavior, whether it happens in the boardroom, on the golf course, or over drinks at a bar.”
Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation in Boston said, “Let me be clear, there are many tripwires in place to detect suspiciously timed trades and as a result of those tripwires numerous people in the Boston area have been charged with insider trading based on parallel FBI and SEC investigations. The risk versus reward calculation for insider trading should be clear based on the increasing number of those recently charged.”
The maximum sentence under the statute is five years in prison, followed by three years of supervised release and a fine of the greater of $250,00 or twice the gross gain or loss. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The United States Attorney’s Office received valuable assistance from the Securities & Exchange Commission, which today filed a separate civil action in federal court. The case is being prosecuted by Stephen E. Frank and Eric P. Christofferson of Ortiz’s Economic Crimes Unit.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Augusta Man Pleads Guilty to Mail and Postal Money Order Theft ChargesRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Jason
K. Stockmar, 28, of Augusta, Maine, pleaded guilty in U.S. District Court to stealing mail and postal money orders while employed by the United States Postal Service (USPS).According to court documents, Stockmar was hired by the USPS in 2011. He was the
Postmaster Relief of the East Vassalboro, Maine Post Office when he stole about 25 to 30 pieces of customer mail between about December 1, 2012, and April 21, 2013. Stockmar took cash, checks, and gift cards from that mail. He also took 20 blank postal money orders from a safe in the East Vassalboro Post Office.
Stockmar faces a sentence of up to 5 years in prison and a fine of up to $250,000. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation
Office.
The case was investigated by the USPS Office of the Inspector General.Attorney General Statement on Latest Developments in Federal Civil Rights Investigation in Ferguson, MORead the Press Release
Attorney General Eric Holder released the following statement Monday following his briefing of President Obama on the latest developments in the federal civil rights investigation in Ferguson, Missouri:
“As I informed the President this afternoon, the full resources of the Department of Justice are being committed to our federal civil rights investigation into the death of Michael Brown.
“During the day today, more than 40 FBI agents continued their canvassing of the neighborhood where Michael Brown was shot. As a result of this investigative work, several new interviews have already been conducted.
“Moreover, at my direction, an additional medical examination is being performed on the body of Michael Brown. This autopsy is being performed today by one of the most experienced medical examiners in the United States military. I am confident this additional autopsy will be thorough and aid in our investigation.
“In addition to updating the President on these developments, I informed him of my plan to personally travel to Ferguson Wednesday. I intend to meet with FBI investigators, and prosecutors on the ground from the Civil Rights Division and U.S. Attorney’s Office officials about the ongoing investigation.
“I realize there is tremendous interest in the facts of the incident that led to Michael Brown’s death, but I ask for the public’s patience as we conduct this investigation. The selective release of sensitive information that we have seen in this case so far is troubling to me. No matter how others pursue their own separate inquiries, the Justice Department is resolved to preserve the integrity of its investigation. This is a critical step in restoring trust between law enforcement and the community, not just in Ferguson, but beyond.
“In order to truly begin the process of healing, we must also see an end to the acts of violence in the streets of Ferguson. Those who have been peacefully demonstrating should join with law enforcement in condemning the actions of looters and others seeking to enflame tensions.
“To assist on this front, the Department will be dispatching additional representatives from the Community Relations Service, including Director Grande Lum, to Ferguson. These officials will continue to convene stakeholders whose cooperation is critical to keeping the peace. Furthermore, as the President has announced, Ron Davis, our Director of the COPS office, will arrive on the ground in Ferguson Tuesday. Ron has been in touch with local and state officials since last week, providing technical assistance on crowd control techniques and facilitating communications between Missouri officials and other law enforcement officials whose communities have faced similar challenges in the past.”
Armenian Power Associate Sentenced to More Than 13 Years in Prison for Racketeering ConspiracyRead the Press Release
An associate of the Armenian Power gang, who was convicted at trial for his role in a racketeering conspiracy that included stealing personal and financial information of elderly bank customers for accounts valued at more than $25 million, was sentenced to serve 160 months in prison today in federal court in Los Angeles.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephanie Yonekura of the Central District of California and Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office made the announcement. The sentence was imposed by U.S. District Judge Philip S. Gutierrez of the Central District of California.
Andranik Aloyan, 41, of Los Angeles was found guilty by a federal jury on Feb. 11, 2014, of racketeering conspiracy, attempted bank fraud, access device fraud, four counts of aggravated identity theft and possession of a firearm by a convicted felon. According to evidence presented at trial, Aloyan possessed personal and financial information belonging to more than 75 mostly elderly customers of banks operating throughout the country. This information was stolen by Aloyan and his associates. The combined value of the accounts for which Aloyan possessed account information exceeded $25 million dollars. In addition to his prison term of 160 months, Aloyan was sentenced to serve three years of supervised release and ordered to pay $3,516,711 in restitution to victims.
Aloyan was among 90 individuals charged in two indictments, including a 140-count indictment in July 2011 charging 70 defendants with a variety of criminal activities associated with the Armenian Power gang. The indictment accused 29 defendants, including Aloyan, of participating in the Armenian Power racketeering conspiracy that involved a host of illegal activities such as sophisticated bank fraud, identity theft, debit-card skimming, manufacturing counterfeit checks and money laundering. In addition, defendants in the case were allegedly involved in a variety of violent crimes, such as kidnapping, extortion and firearms offenses, along with other crimes including drug trafficking and illegal gambling. Eighty-one defendants have previously been convicted or pleaded guilty to the charges, including 24 defendants who were convicted of or pleaded guilty to racketeering charges.
According to court documents, the Armenian Power street gang formed in the East Hollywood district of Los Angeles in the 1980s. The gang’s membership consisted primarily of individuals of Armenian descent, as well as of other countries within the former Soviet bloc. Armenian Power has been designated under California state law as a criminal street gang and is believed to have more than 250 documented members, as well as hundreds of associates. According to court documents, Armenian Power members and associates regularly carry out violent criminal acts, including murders, attempted murders, kidnappings, robberies, extortions and witness intimidation to enrich its members and associates and preserve and enhance the power of the criminal enterprise.
The case was investigated by the Eurasian Organized Crime Task Force, which is comprised of the FBI, the Glendale Police Department, the Los Angeles Police Department, the Burbank Police Department, the Los Angeles Sheriff’s Department, the Internal Revenue Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Secret Service.
The case is being prosecuted by Trial Attorney Andrew Creighton of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Martin Estrada, Elizabeth Yang and Stephen Wolfe of the Central District of California.Armenian Power Associate Sentenced to More Than 13 Years in Federal Prison for Racketeering ConspiracyRead the Press Release
LOS ANGELES – An associate of the Armenian Power gang, who was convicted at trial for his role in a racketeering conspiracy that included stealing personal and financial information of elderly bank customers for accounts valued at more than $25 million, was sentenced today to 160 months in prison.
Andranik Aloyan, 41, of Hollywood, was sentenced by United States District Judge Philip S. Gutierrez. In addition to the prison term of more than 13 years, Judge Gutierrez ordered Aloyan to pay $3,516,711 in restitution.
A federal jury in February found guilty Aloyan guilty of racketeering conspiracy, attempted bank fraud, access device fraud, four counts of aggravated identity theft and possession of a firearm by a convicted felon.
According to the evidence presented at trial, Aloyan possessed and used stolen personal and financial information belonging to more than 80, mostly elderly bank customers, whose accounts combined to be worth more than $25 million.
Aloyan was among 90 individuals charged three years ago in two indictments that alleged a variety of criminal activities associated with the Armenian Power gang. One indictment accused 27 defendants, including Aloyan, of participating in the Armenian Power racketeering conspiracy that involved illegal activities such as sophisticated bank fraud, identity theft, debit-card skimming, manufacturing counterfeit checks and money laundering. Some of the defendants also were involved in violent crimes, such as kidnapping, extortion and firearms offenses, along with other crimes including drug trafficking and illegal gambling. Eighty-five defendants have previously been convicted or pleaded guilty to the charges, including 26 defendants who were convicted of or pleaded guilty to racketeering charges.
According to court documents, the Armenian Power street gang formed in the East Hollywood district of Los Angeles in the 1980s. The gang’s membership consisted primarily of individuals of Armenian descent, as well as of other countries within the former Soviet bloc. Armenian Power has been designated under California state law as a criminal street gang and is believed to have more than 250 documented members, as well as hundreds of associates. According to court documents, Armenian Power members and associates regularly carry out violent criminal acts, including murders, attempted murders, kidnappings, robberies, extortions and witness intimidation to enrich its members and associates and preserve and enhance the power of the criminal enterprise.
The cases were investigated by the Eurasian Organized Crime Task Force, which is comprised of the FBI, the Glendale Police Department, the Los Angeles Police Department, the Burbank Police Department, the Los Angeles Sheriff’s Department,RS – Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Secret Service.
The cases are being prosecuted by the United States Attorney’s Office and the Department of Justice, Criminal Division, Organized Crime and Gang Section.
Release No. 14-108
Acting United States Attorney Josh J. Minkler Names Acting Criminal ChiefRead the Press Release
Winfield D. Ong to head up office’s criminal division
INDIANAPOLIS – Josh J. Minkler, Acting United States Attorney for the Southern District of Indiana today announced the appointment of a new supervisor to lead the Criminal Division. Winfield D. Ong, 56, will become the Acting Criminal Chief supervising attorneys who work fraud, public corruption, child exploitation, human trafficking, environmental, and other criminal cases.
Ong is a 25 year veteran of the U. S. Attorney’s Office specializing in white collar cases. He most recently was the lead federal prosecutor in the Tim Durham case resulting in a sentence of over 50 years.
Ong graduated law school from Lewis and Clark College, Portland, OR., in1985, and DePauw University, 1980. He and his wife Jennifer have three adult children. He begins his assignment immediately.
Accountant from Rio Arriba County Pleads Guilty to Federal Conspiracy, Mail Fraud and Identity Theft ChargesRead the Press Release
ALBUQUERQUE – Jasonn Gonzales, 41, an accountant from Velarde, N.M., pleaded guilty this morning to conspiracy, mail fraud and aggravated identity theft charges arising out of a scheme to defraud the federal and state unemployment insurance system. The guilty plea was entered without the benefit of a plea agreement.
Gonzales and his co-defendant, Gerald Archuleta, 43, of Ojo Caliente, N.M., were charged in a six-count indictment that was filed on March 26, 2014. Count 1 charged the two men with conspiracy to commit mail fraud in furtherance of a scheme to defraud the federal and state Unemployment Insurance System in New Mexico, Texas and Colorado of money by false and fraudulent pretenses. Counts 2 through 5 of the indictment charged the men with mail fraud, and Count 6 charges Gonzales alone with aggravated identity theft.
According to the indictment, the federal and state Unemployment Insurance System seeks to lessen the effects of unemployment through payments made to claimants (laid-off workers) on a weekly basis while the claimants seek employment. The unemployment insurance program is administered on behalf of the federal government by state workforce agencies in each state. The indictment alleges that between 2009 and 2012, Gonzales and Archuleta schemed to defraud the New Mexico Department of Workforce Solutions, the Texas Workforce Commission and the Colorado Department of Labor and Employment of more than $1,356,000 by making false and fraudulent claims for unemployment benefits in the names of real people.
The indictment alleges that Gonzales and Archuleta perpetuated their unlawful scheme by fraudulently registering numerous non-existent companies with the three state workforce agencies and filing false quarterly reports for the fictitious companies which identified claimed employees. The two men allegedly provided the names, dates of birth and social security numbers of the claimed employees to the state agencies without the knowledge or authorization of the claimed employees, who were real people. Gonzales and Archuleta then allegedly made false and fraudulent claims for unemployment benefit claims on behalf of the claimed employees of the fictitious companies. The two men allegedly opened post office boxes in New Mexico, Texas and Colorado, which they provided to the three state workforce agencies as mailing addresses for the claimed employees. The state agencies mailed debit cards to the claimed employees at the post office boxes and the defendants allegedly used the debit cards to withdraw the fraudulently obtained benefits. During the life of the conspiracy, Gonzales and Archuleta allegedly submitted fraudulent claims for unemployment benefits in the aggregate amount of $1,356,461, and defrauded the three state workforce agencies of approximately $801,848, in total.
The indictment includes forfeiture provisions seeking a money judgment in the amount of $801,848 as well as the forfeiture of assets and property which constitute or are derived from proceeds traceable to the criminal activity alleged in the indictment.
During today’s proceedings, Gonzales pled guilty to all six counts of the indictment. Gonzales also admitted to the forfeiture provisions of the indictment and to the entry of an $801,848 money judgment against him. At sentencing, Gonzales faces a statutory maximum penalty of 20 years in federal prison on the conspiracy charge and each of the five mail fraud charges. He also will be sentenced to a two-year mandatory prison sentence to be served consecutive to any sentence imposed on the conspiracy and mail fraud charges. Gonzales’ sentencing date has yet to be scheduled.
Archuleta has entered a not guilty plea to the indictment. Charges in indictments are merely accusations and Archuleta is presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Department of Labor Office of Inspector General, Office of Labor Racketeering and Frauds Investigations, and the U.S. Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorney Tara C. Neda.
17 August 2014
Statement by Justice Department Spokesman on Latest Developments in Federal Civil Rights Investigation in Ferguson, MissouriRead the Press Release
The following statement was released Sunday by Justice Department spokesman Brian Fallon concerning the federal civil rights investigation into the shooting of Michael Brown in Ferguson, Missouri:
"Due to the extraordinary circumstances involved in this case and at the request of the Brown family, Attorney General Holder has instructed Justice Department officials to arrange for an additional autopsy to be performed by a federal medical examiner. This independent examination will take place as soon as possible. Even after it is complete, Justice Department officials still plan to take the state-performed autopsy into account in the course of their investigation."
15 August 2014
Woman Indicted for Drug Smuggling at Logan AirportRead the Press Release
BOSTON - A Massachusetts woman has been charged with smuggling cocaine through Logan Airport.
On June 16, 2014, Laura Santana, 26, of East Boston, was stopped at Logan International Airport as she returned from the Dominican Republic with two empty purses, one in her suitcase and another in a handbag. It is alleged that each purse was heavier than an empty purse should have been, and the Customs and Border Protection Officers felt something sewn into the lining of the purses.
According to documents filed with the court, when the linings were cut open, six packets of a powdery substance, wrapped in dark blue mimeograph paper and clear tape, were found. Preliminary testing revealed that the substance was cocaine. The indictment charges Santana with unlawful import of a controlled substance.
The maximum sentence under the statute is 20 years in prison, followed by three years of supervised release and a $1 million fine. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Thomas E. Kanwit of Ortiz’s Major Crimes Unit.
The details contained in the Indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Wisconsin Man Pleads Guilty to Lacey Act ViolationsRead the Press Release
OXFORD, Miss. - Felicia C. Adams, United States Attorney for the Northern District of Mississippi, and Luis Santiago, Special Agent in Charge of the United States Fish and Wildlife Service, announced that:
Peter Jesunas, Jr, 32, of Shiocton, Wisconsin, pled guilty on August 11, 2014, before United States Magistrate Judge David A. Sanders, in Aberdeen, Mississippi, to transporting and attempting to sell wildlife pelts taken in violation of state law. The guilty plea arose out of an investigation which determined that Jesunas had travelled to Mississippi in the Spring of 2012 for the purpose of trapping wildlife on private property. Due to a previous conviction for wildlife related offenses, Jesunas was unable to purchase the required Mississippi trapper’s license. Jesunas successfully trapped approximately 350 animals from 7 different species, all of which were taken illegally since Jesunas did not have a Mississippi trapper’s license.
On or about April 1, 2012, Jesunas transported the pelts back to Wisconsin, where he attempted to sell them. A valid CITES tag is required to transport bobcat and otter skins or pelts in interstate commerce. Jesunas had his brother, Patrick Jesunas, purchase a Mississippi trapper’s license, which Peter Jesunas used to fraudulently obtain the required CITES tags. Jesunas plead guilty to violating the Lacey Act, which states, in relevant part, that it is illegal to transport in interstate commerce wildlife that has been transported or possessed in violation of any state law or regulation. Jesunas violated the Lacey Act in trapping animals without a license and obtaining CITES tags through fraud/false statement, then transporting the pelts across state lines for sale.
Following his guilty plea Jesunas was ordered to pay restitution to the Mississippi Department of Wildlife, Fisheries and Parks Foundation, and to the Lacey Act Fund, in the total amount of $10,000. Jesunas was further required to forfeit the pelts to the State of Wisconsin. Jesunas was also placed on probation for a period of three years, and, as a condition of his probation, Jesunas will be prohibited from hunting or trapping in any manner, anywhere in the world, during the course of his three-year probationary period.
Patrick Jesunas previously plead guilty to a separate charge for his role in aiding and abetting a violation of the Lacey Act by assisting his brother, Peter Jesunas, in fraudulently obtaining CITES tags. Patrick Jesunas was ordered to pay a fine in the amount of $1,500.
“We are committed to working with Mississippi and its citizens to conserve and protect wildlife,” said United States Fish and Wildlife Service Special Agent in Charge Santiago. “Our collective efforts help ensure that these resources will be here for future generations of fair chase hunters, trappers and outdoor enthusiasts.”
This case was investigated by the United States Fish and Wildlife Service Office of Law Enforcement, the Wisconsin Department of Natural Resources, and the Mississippi Department of Wildlife, Fisheries and Parks.
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- David Rodriguez, 32, of Elkhart, Indiana pled guilty to the felony offense of being a convicted felon in possession of a firearm. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for November 10, 2014. This case is being prosecuted by Assistant United States Attorney Jesse Barrett.
- Clifton Valentius Holiday, 27, of South Bend, Indiana pled guilty to the felony offense of being a convicted felon in possession of a firearm. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for November 10, 2014. This case is being prosecuted by Assistant United States Attorney Jesse Barrett.
- Vernado Ruben Malone, 41, of Indianapolis, Indiana pled guilty to the felony offenses of mail fraud and aggravated identity theft. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation. Sentencing has been set for Novemer 13, 2014. This case is being prosecuted by Assistant United States Attorney Donald Schmid.
- Crystal Riggs, 48, of Goshen, Indiana pled guilty to the felony offense of theft of government property. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the United States Postal Service. Sentencing has been set for November 18, 2014. This case is being prosecuted by Assistant United States Attorney Jesse Barrett.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.DISPOSITIONS
- Demarcus Bowling, 21, of Mishawaka, Indiana was sentenced to 24 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon. According to documents filed in this case, on March 6, 2013 Bowling was convicted of theft, a Class D felony. After March 6, 2013 and before September 3, 2013, he knowingly possessed a .357 revolver in the Northern District of Indiana. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and explosives. This case was prosecuted by Assistant United States Attorney Donald Schmid.
- Zamale Davis, 19, of South Bend, Indiana was sentenced to 121 months imprisonment, 2 years Supervised Release, $200 Special Assessment and Restitution to KeyBank in the amount of $53,800 after pleading guilty to the felony offense of armed bank robbery. According to documents filed in this case, on August 7, 2013, Davis along with other accomplices robbed a Bristol, Indiana bank of $53,800. During the robbery, Davis vaulted the counter. The day after this robbery, with a portion of the bank robbery proceeds, Davis purchased two cars. This case was the result of an investigation by Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Donald J. Schmid.
Week in Review – HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Armando Gomez, 64, of East Chicago, Indiana pled guilty to the felony offense of making a false statement under oath on a tax return. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Internal Revenue Service. Sentencing has been set for 11/20/2014. This case is being prosecuted by Assistant United States Attorney Philip Benson.
- Julie A Schroeder, 51, of Valparaiso, Indiana pled guilty to the felony offense of theft from a program receiving federal funds. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation. Sentencing has been set for 11/20/2014. This case is being prosecuted by Assistant United States Attorney Philip Benson.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Carlos Rodriguez, 37, of Hobart, Indiana was sentenced to 3 years of probation after pleading guilty to the felony offense of possession with intent to distribute cocaine. According to documents filed in this case, the Bureau of Alcohol, Tobacco, Firearms and Explosives made four controlled purchases of cocaine from Carlos Rodriguez and then executed a Federal search warrant at his residence, seizing cocaine, marijuana, and a firearm. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
- Timothy Williams, 35, of Chicago, Illinois was re-sentenced to 80 months in prison after pleading guilty to the felony offenses of misuse of a social security number, making a false statement to the Internal Revenue Service and multiple counts of identity theft. According to documents filed in this case, in 2011, Judge Philip Simon sentenced Williams to 80 months prison after Williams pled guilty. In 2013, the Seventh Circuit reversed the sentence due to a technicality with the sentencing guidelines manual. This week, Judge Simon ruled that nothing had changed with the facts of the case or Williams himself, and imposed the same 80 month incarceration term. This case was the result of an investigation by the United States Secret Service. This case was prosecuted by Assistant United States Attorney Gary Bell.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Daniel Perry, 25, of Fairmount, Indiana pled guilty to the felony offense of receipt of material involving the sexual exploitation of minors. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Federal Bureau of Investigation and the Fort Wayne Police Department. Sentencing will be set by separate order by the district court. This case is being prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
United States Attorney’s Office Announces Sentence in Child Pornography CaseRead the Press Release
Former postal employee receives 63 month sentence
EVANSVILLE B Josh J. Minkler, Acting United States Attorney, today announced the sentencing of an Evansville man for possessing and receiving sexually explicit material involving a minor. Floyd M. Thompson, 60, was sentenced by Chief U.S. District Judge Richard Young to 63 months (over five years) in federal prison. Thompson was the former postmaster at the Elberfeld post office.
"This Office initiated Operation Community Watch over two years ago with an unwavering resolve to find and prosecute those who exploit our children," Minkler said. "You are not anonymous online and if you engage in this type of behavior, you will be held accountable."
According to court documents, law enforcement first began their investigation in June 2013, when an undercover member of the Federal Bureau of Investigation's Southern Indiana Child Exploitation Task Force connected with a computer that was allegedly sharing sexually-explicit images depicting young children. After downloading a number of these files from the user, investigators traced the online activity to a home in Evansville.
As a result of this information, a federal search warrant was executed in August 2013, at Thompson’s Evansville home. Federal agents interviewed Thompson and took his computer equipment into custody. A preliminary forensic examination of these computers revealed thousands of images and videos of child pornography depicting young girls between the ages of 3 and 12 years old.
This case was investigated by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Evansville Police Department.
FBI Special Agent in Charge W. Jay Abbott stated “The protection of children from sexual predators is one of our highest priorities. The FBI will use every means available to seek out those that prey on the most vulnerable.”
Thompson is being held at Volunteers of America in Evansville and will self-surrender when notified by the Bureau of Prisons.
According to Assistant U.S. Attorney Todd Shellenbarger, who prosecuted this case for the government, Thompson faces a lifetime of supervised release after serving his sentence.
This case was brought as part of Project Safe Childhood, a larger nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Hogsett pointed out that in the last Project Safe Childhood reporting year, the Office prosecuted 52 defendants, an increase of 37% over the prior year, and 49 defendants were convicted and sentenced. These are all-time records for the Office.
The greatest measure of the PSC program's impact, however, is the identification and rescue of child victims of sexual exploitation and abuse. Over the last year, the U.S. Attorney's Office successfully identified more than 120 child victims, including minors in Indiana, numerous places in the United States, Canada, Switzerland, and other countries around the world.
Led nationally by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
United States and State of New York Announce Lodging of Modified Consent Decree for Croton Drinking Water SupplyRead the Press Release
Loretta E. Lynch, United States Attorney for the Eastern District of New York, Sam Hirsch, Acting Assistant Attorney General, United States Department of Justice, Environment and Natural Resources Division, Judith A. Enck, Regional Administrator, United States Environmental Protection Agency Region 2, Eric T. Schneiderman, Attorney General for the State of New York, and Dr. Howard Zucker, New York State Acting Commissioner of Health, announced today that the United States and the State have reached agreement with New York City to modify the Consent Decree entered in November 1998 which required the City to construct a filtration plant for its Croton drinking water supply. Under the Third Supplement to the Consent Decree, lodged today in U.S. District Court in Brooklyn, the City completed construction of the filtration plant on April 15, 2014 and will commence operation of the filtration plant at its selected site, the Mosholu Golf Course Site in the Bronx, no later than May 17, 2015. If the City fails to meet the May 17, 2015 deadline, the Consent Decree provides for stipulated penalties in the amount of $65 million. Under the Consent Decree, the City is required to conduct interim measures including monitoring the quality and safety of the Croton System and implementing watershed protection measures.
The need for this modification arose when the City failed to meet certain deadlines under the Second Supplement to the Consent Decree, including completion of construction. The City has paid $5,064,000 in penalties to date for missed deadlines associated with the delays in the project schedule.
New York City is required to filter its Croton System under the Safe Drinking Water Act and the Surface Water Treatment Rule (SWTR), as well as the New York State Sanitary Code. Under the SWTR, the City was required to implement filtration for its Croton System by June 29, 1993. By stipulation with the State of New York, the City agreed to begin construction by July 1, 1996, and operate a filtration plant by June 1, 2000. The City failed to comply with the stipulation and, in 1997, the United States brought suit against New York City to enforce the filtration requirements. Soon thereafter, the State of New York and its Commissioner of Health intervened in the suit as plaintiffs and are parties to the Consent Decree as supplemented.
Filtering drinking water obtained from surface water sources, such as the Croton System, reduces the risk of waterborne disease. These sources are susceptible to potential contamination from disease causing organisms such as Giardia and Cryptosporidium which can easily get into surface water supplies from human activity and animals. Filtration, coupled with disinfection and source water protection, is the best means of ensuring the safety of drinking water from the City’s Croton water supply. Drinking water from the Croton System does not pose an immediate threat to public health, but filtration is necessary to assure the continued long term safety of water delivered from the Croton System.
The City has not used of the Croton System since 2008 due to the ongoing construction of the filtration plant. With the completion of the filtration plant and when the Croton drinking water supply system is fully reactivated, the City will have the ability to deliver 290 million gallons of high-quality water each day from the Croton System. The City has stated that use of the Croton drinking water supply system will be critical in ensuring that the City can continue to meet the City’s drinking water needs during the shutdown of the Delaware Aqueduct. The Croton drinking water supply system will also supplement the city’s water supply during future drought conditions.
“The United States brought this action in 1997 to ensure that New York City residents are provided with safe drinking water from the Croton Water Supply. Despite many hurdles in siting and challenges in construction and contracting, we have vigorously enforced the Consent Decree to ensure that construction of the filtration plant was completed and that filtered water will be available to New York City residents from the Croton System in the very near future,” said United States Attorney Lynch. Ms. Lynch promised continued vigorous enforcement and oversight of the requirements of the Consent Decree as supplemented.
“Ensuring that people have a safe source of drinking water is essential to protecting public health,” said EPA Regional Administrator Enck. “EPA required the city to build a filtration plant because the New Yorkers who drink Croton water deserve to have the highest quality water possible. The Safe Drinking Water Act was designed to protect people from Giardia and Cryptosporidium, which can affect the water supply and cause serious illness. The Croton system is vulnerable to these types of contamination, which makes filtration imperative.”
“Water from the Croton system has been critical to New Yorkers since the first Croton aqueduct was put in operation in 1842. Completion of the filtration plant, as required under the Third Supplement, will help ensure that water from the Croton watershed will remain safe, available, and integral to New York City’s supply. My office will continue to work with our federal, state, and local partners to confirm the Consent Decree is followed and the filtration plant is completed and operational as soon as possible,” said New York Attorney General Schneiderman.
“Drinking water is a vital resource, and the New York State Department of Health is committed to ensuring that New Yorkers have a safe dependable supply. The Croton water filtration plant will play an important role in this effort now and well into the future,” said Acting New York State Health Commissioner Zucker.
The proposed settlement will be published in the Federal Register for a 30-day public comment period and to become effective must be approved by United States District Judge Nina Gershon of the Eastern District of New York, who is overseeing enforcement of the Consent Decree. The action was litigated and the Consent Decree was negotiated by Assistant United States Attorney Deborah B. Zwany, Elizabeth Yu, U. S. Department of Justice, Environment and Natural Resources Division, and Andrew Gershon, New York State Attorney General’s Office, with assistance from EPA Region 2, Phyllis Feinmark, Regional Counsel’s Office, Doughlas McKenna, Chief of the Water Compliance Branch, and Nicole Kraft, Chief of the Ground Water Compliance Section, and the New York State Department of Health’s Bureau of Water Supply Protection.
Two Plead Guilty in Armed Robbery and Carjacking ShootingsRead the Press Release
Investigation by FBI’s Cross Border Task Force Results in the Conviction of Two Defendants to Date in a Violent Robbery and Carjacking
Greenbelt, Maryland - Tonnie Floyd, age 22, of Washington, D.C., pleaded guilty today to robbery, discharging a gun during the robbery and carjacking, in connection with an armored car robbery and a carjacking in which a victim was shot in the face. Marcellus Ramone Freeman, a/k/a Derrick Relando Pitts, age 23, also of Washington, D.C., pleaded guilty to the same offenses on Monday, August 11, 2014.The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; the members of the FBI Cross Border Task Force - Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Acting Assistant Director in Charge Timothy A. Gallagher of the Federal Bureau of Investigation - Washington Field Office; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; and by Chief Alan Goldberg of the Takoma Park Police Department.
According to their plea agreements, on October 26, 2012, Floyd, Marcellus Freeman and another conspirator, driving a stolen Jeep, followed a Garda Cash Logistics armored transport vehicle to the Cricket store located in the 1300 block of University Boulevard East, Takoma Park, Maryland. A Garda employee exited the armored truck, went into the store and picked up a bag containing $3,911. As he returned to the armored truck, he was confronted by two co-conspirators with guns. The Garda employee dropped the money bag and at least one co-conspirator fired a gun at the employee. The employee shot back. One of the co-conspirators picked up the money bag. The co-conspirators ran back to the stolen Jeep. As the co-conspirators drove away, the employee continued to fire his handgun at the Jeep, striking a tire and the back window. Floyd was wounded in the shoulder during the gunfire.
The co-conspirators left the Jeep in a neighborhood nearby because it had a flat tire, as a result of the shooting. They saw a man entering a vehicle, and shot the man in the face, causing permanent and life-threatening bodily injury. They took the vehicle and drove into the District of Columbia, where they set the vehicle on fire.
Floyd faces a maximum sentence of 20 years in prison for armed robbery; life in prison for using and discharging a weapon during a crime of violence; and 25 years in prison for carjacking. Freeman and the government have agreed that if the Court accepts his plea agreement, Freeman will be sentenced to between 241 months and 30 years in prison. Chief U.S. District Judge Deborah K. Chasanow scheduled Floyd and Freeman’s sentencings for November 25, 2014 and December 11, 2014, respectively.
Co-defendant Anthony Terrell Cannon, age 25, of Washington, D.C. was charged by indictment for alleged offenses arising from the robbery and is scheduled to go to trial on September 2, 2014.
United States Attorney Rod J. Rosenstein praised the FBI Baltimore and Washington Field Offices, the Prince George’s County and Montgomery County Police Departments, the Metropolitan Police Department and the Takoma Park Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Bryan E. Foreman, who are prosecuting the case.
Two Miami Residents Sentenced for Money Laundering Activities Involving Stolen Identity Tax RefundsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, announce that Steven Toussaint, 33, and Emmanuel Marvin Alphonse, 28, both of Miami, were sentenced before U.S. District Judge Jose E. Martinez. Toussaint was sentenced to 46 months in prison, to be followed by three years of supervised release. Alphonse was sentenced to 37 months in prison, to be followed by three years of supervised release. Each defendant previously pled guilty to one count of money laundering, in violation of Title 18, United States Code, Section 1956(a)(1)(B)(i).
According to court documents, from January 1, 2011 through July 29, 2011, the defendants engaged in money laundering activities involving the cashing of money orders funded with fraudulent, stolen identity tax refunds. Both Toussaint and Alphonse had their own check cashing accounts at the Cash-A-Check check-cashing store. Steven Toussaint cashed 985 money orders, totaling $490,401, using his own Cash-A-Check account. Emmanuel Marvin Alphonse cashed 581 money orders, totaling $286,995, using his own Cash-A-Check account. The defendants knew that the money orders were funded by unlawful activity, and knowingly conducted the transactions on behalf of third-parties for the purpose of concealing and disguising the nature and source of the unlawful proceeds in exchange for a portion of the funds involved in each transaction.
Mr. Ferrer commended the investigative efforts of IRS-CI and USPIS. The case is being prosecuted by Assistant U.S. Attorney Frank R. Maderal.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Gang Members Sentenced on Drug ChargesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that WAYNE WRIGHT, also known as “Crueger,” 29, formerly of the Bronx, New York, and ANAJE AMIN, also 29, formerly of New Haven, Connecticut, were sentenced yesterday by Senior U.S. District Judge Warren W. Eginton in Bridgeport. Judge Eginton sentenced WRIGHT to 57 months of imprisonment and AMIN was sentenced to 64 months of imprisonment, following their guilty pleas for conspiring to possess with intent to distribute crack cocaine. Judge Eginton also ordered both men be placed on supervised release following their release from prison and included, as conditions of that release, that there be no association with gang members and that they submit to searches by the U.S. Probation Office.
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI New Haven Safe Streets Task Force, the New Haven Police Department and the Connecticut State Police into drug distribution and related violence allegedly being committed by members and associates of the Grape Street Crips in New Haven. According to documents filed and statements made in court, both WRIGHT and AMIN were members of the Crips.
Twenty individuals, including WRIGHT and AMIN, were charged with narcotics distribution and related offenses stemming from this investigation. All of the defendants pleaded guilty.
This case was being investigated by the FBI’s New Haven Safe Streets Task Force, which includes officers from the New Haven, Hamden and Milford Police Departments, and the State of Connecticut Department of Correction. The investigation was significantly assisted by the Connecticut State Police, the United States Marshals Service and the Westerly (R.I.) Police Department.
The investigation was funded in significant part by the United States Attorney’s Office Organized Crime Drug Enforcement Task Force and supported by the Office’s Project Safe Neighborhoods and Anti-Gang programs.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and H. Gordon Hall.PUBLIC AFFAIRS CONTACT:
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(203) 821-3722 [email protected]Two Chinese Citizens Charged with Trafficking Counterfeit Cell Phone CasesRead the Press Release
Boston – Two Chinese citizens, living in Massachusetts, were charged today with importing and reselling counterfeit cases for cell phones.
Zexiong Chen, 28, and Haotian Chen, 26, who are unrelated, were charged today with trafficking in counterfeit goods. It is alleged that in February 2013, the defendants incorporated Max Wireless Group, Inc. as a vehicle for importing and reselling cell phone cases, many of which were counterfeit. Through Max Wireless, Zexiong Chen and Haotian Chen allegedly imported counterfeit cell phone cases from China, sold a small percentage of them through their Wakefield store, and sold the vast majority of them to individuals and companies who resold them at retail locations. Many of these retail locations were kiosks in shopping malls, some of which were in Massachusetts.
In February 2014 Zexiong Chen was arrested at JFK International Airport as he prepared to board a plane to China. He has been in custody since that time. Haotian Chen was also arrested in February 2014 and was released by the Court on conditions.
It is alleged that on 12 occasions from November 2012 through August 2013, U.S. Customs and Border Patrol officials inspected shipments the defendants imported from China to the United States and determined that these shipments contained counterfeit items. These 12 seizures included more than 10,000 counterfeit cell phone cases, bearing marks of manufacturers including: OtterBox, Speck, Kate Spade, Hello Kitty, Ferrari and LifeProof. On Sept. 4, 2013, federal agents searched the Max Wireless store and found more than 2,500 counterfeit cell phone cases and accessories.
The total of the manufacturers’ suggested retail price (MSRP) for the authentic versions of all of the cell phone cases that were seized during the course of this investigation totaled more than $350,000, but the defendants paid far less for the cases and typically resold the cases for far less than MSRP.
The maximum sentence under the statute is 10 years in prison, followed by three years of supervised release and a fine of $2 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. The case was investigated by Homeland Security Investigations and is being prosecuted by Assistant U.S. Attorney Adam Bookbinder, Chief of Ortiz’s Cyber Crime’s Unit.
Three Men Charged in White Plains Federal Court with Carjacking Resulting in DeathRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), William J. Bratton, the Commissioner of the Police Department for the City of New York (“NYPD”), and Charles Gardner, Commissioner of the Yonkers Police Department (“Yonkers PD”) announced that TAKIEM EWING, a/k/a “Mulla,” TYRONE FELDER, a/k/a “Man Man,” and KAREEM MARTIN, a/k/a “Jamal Walker,” were arrested and charged with carjacking in connection with the August 12, 2014, murder of a livery cab driver in the Bronx, New York. All three men were presented this afternoon in White Plains federal court before United States Magistrate Judge Lisa Margaret Smith and were ordered detained.
U.S. Attorney Preet Bharara stated: “As alleged in the complaint, this was a senseless and heinous murder that took the life of a man who was working as a livery cab driver in the Bronx. The arrests today are a testament to the perseverance and cooperation of the FBI and our local partners, the NYPD and the Yonkers Police Department.”
FBI Assistant Director-in-Charge George Venizelos stated: “As alleged, the defendants were as reckless as they were ruthless, indiscriminately assassinating an innocent livery driver trying to earn a living. This alleged conduct is beyond deplorable. Agents, detectives, and prosecutors worked around-the-clock to make these arrests and to stop this scourge on our community. I commend them for their relentless drive in pursuit of justice.”
NYPD Commissioner William J. Bratton stated: “The victim in this case was a hard-working livery driver who provided an essential service to New Yorkers. His death was senseless and motivated by greed. Thanks to the detectives, agents, and prosecutors pursuing this case, the suspects will now be held accountable for this heinous crime.”
Yonkers PD Commissioner Charles Gardner stated: “This investigation is a prime example of inter-agency cooperation and how it can be used to take violent suspects off of our streets. I would like to thank all the investigators and prosecutors from the FBI, U.S. Attorney’s Office, NYPD and Yonkers PD for their professionalism, which ultimately led to these important arrests.”
According to the Complaint, the FBI, the NYPD, and the Yonkers PD were investigating two commercial robberies, two carjackings, and two murders that took place on August 5, 2014, and August 12, 2014, respectively. The first murder took place in the early morning hours of August 5, 2014, when the body of a livery cab driver (the “Hunter Avenue Homicide Victim”) was found shot in the vicinity of Hunter Avenue in the Bronx, New York.
Later that day, the Yonkers PD received a report that a minimart located on McLean Avenue in Yonkers had been robbed at gunpoint. The robbers took cash, bleach, and a cellular telephone. Video footage from outside the minimart revealed that the robbers arrived in a black sedan the looked like the sedan belonging to the Hunter Avenue Homicide Victim. Also on August 5, 2014, at approximately 5:27 a.m., the Yonkers PD received a report that a Dunkin’ Donuts franchise at Central Park Avenue in Yonkers had been robbed at gunpoint.
According to the Complaint, later on the night of August 5, 2014, the black sedan belonging to the Hunter Avenue Homicide Victim was found abandoned near Exterior Street in the Bronx. The vehicle was doused in bleach. Inside was the cellular telephone that was stolen from the Yonkers minimart.
According to the Complaint, on or about August 12, 2014, at approximately 6:00 a.m., the body of a livery cab driver (the “Bryant Avenue Homicide Victim”) was found shot in the head in the street on Bryant Avenue in the Bronx, New York. He was later pronounced dead.
On or about August 12, 2014, at approximately 8:10 a.m., the livery cab belonging to the Bryant Avenue Homicide Victim (the “Victim’s Cab”) was found abandoned on Underhill Avenue in the Bronx, New York.
According to the Complaint, a ballistics examination has shown that different guns were used to murder the Hunter Avenue Homicide Victim and the Bryant Avenue Homicide Victim. Ballistics evidence shows, however, that both of those guns were used in a single shooting on May 29, 2014, on the corner of Ogden Avenue and West 162nd Street in the Bronx, New York.
According to the Complaint, video footage (“Video-1”) from inside and outside an apartment building on Third Avenue between 167th and 168th Streets in the Bronx, New York (the “Third Avenue Building”), on August 12, 2014, from approximately 5:00 a.m. to 5:01 a.m., shows two men (“Suspect-1” and “Suspect-2”) getting into an elevator on the ninth floor of the Third Avenue Building, taking the elevator downstairs, leaving the building, and turning left onto Third Avenue. Suspect-1 is wearing a dark Adidas sweatshirt and is wearing a knapsack. Suspect-2 is wearing a dark Brooklyn Nets sweatshirt. Additional video footage (“Video-2”) from Third Avenue between 166th and 167th Streets in the Bronx, New York, on August 12, 2014, from approximately 5:34 a.m. to 5:36 a.m., shows four individuals approaching a car from different directions and getting in a car. Two of the individuals are wearing clothing that is consistent with the description of Suspect-1 and Suspect-2.
According to the Complaint, an NYPD detective (“Detective-1”) spoke with a witness (“Witness-1”) who is a livery cab driver who knows the Bryant Avenue Victim. On the morning of August 12, 2014, Witness-1 had been at a mosque on Third Avenue between 166th and 167th Streets (the “Mosque”). At approximately 5:15 a.m., Witness-1 left the Mosque and got into his livery cab. Before Witness-1 left the Mosque, Witness-1 saw the Bryant Avenue Victim at the Mosque. Witness-1 also saw the Victim’s Cab parked on Third Avenue near the Mosque. At approximately 5:20 a.m., an individual wearing a knapsack approached Witness-1’s car and asked for a ride. Witness-1 saw two other individuals nearby, felt uncomfortable, and left.
According to the Complaint, an NYPD detective (“Detective-2”) spoke with a witness (“Witness-2”), who is a livery cab driver who knows the Bryant Avenue Victim. On the morning of August 12, 2014, Witness-2 had been at the Mosque. Sometime after 5:00 a.m., Witness-2 left the Mosque. Before Witness-2 left the Mosque, Witness-2 saw the Bryant Avenue Victim at the Mosque. Witness-2 got into Witness-2’s car, and observed four individuals separated from one another. At approximately 5:25 a.m., one of those individuals asked Witness-2 for a ride, and informed Witness-2 that it was a ride for four people. Witness-2 declined and drove away.
Additional video footage (“Video-3”) from Bryant Avenue in the Bronx, New York, on August 12, 2014, at approximately 6:00 a.m., shows the Victim’s Cab rolling down Bryant Avenue and making contact with at least one parked car. Video-3 shows Suspect-1, Suspect-2, and two other individuals (“Suspect-3” and “Suspect-4”) (collectively, the “Suspects”) running after the Victim’s Cab. They got into the Victim’s Cab, dumped a body onto Bryant Avenue, and drove away in the Victim’s Cab.
Additional video footage (“Video-4”) from the vicinity of Underhill Avenue between Lafayette and Story Avenues, and Bolton Avenue between Lafayette and Story Avenues, in the Bronx, New York, on August 12, 2014, from approximately 6:03 a.m. to 6:05 a.m., shows that the Victim’s Cab pulled up, and the Suspects got out of the Victim’s Cab. The Suspects wiped the outside of the Victim’s Cab, and then ran across a walkway to Bolton Avenue between Lafayette and Story Avenues. They took off their sweatshirts and left their sweatshirts and Suspect-1’s knapsack in a dumpster. The Suspects then walked toward Lafayette Avenue.
Additional video footage (“Video-5”) from Lafayette Avenue in the Bronx, New York, on August 12, 2014, from approximately 6:08 a.m. to 6:09 a.m., shows Suspect-1 and Suspect-3 getting into a car. Suspect-2 and Suspect-4 walked toward Seward Avenue.
According to the Complaint, an NYPD detective (“Detective-3”) spoke with a livery cab driver (“Driver-1”). Driver-1 informed Detective-3, in substance and in part, that at approximately 6:10 a.m. on August 12, 2014, Driver-1 picked up two individuals from the vicinity of the intersection of White Plains Road and Seward Avenue in the Bronx, New York. Driver-1 drove the two individuals in his livery cab (“Cab-1”) to the vicinity of the Third Avenue Building. Driver-1 saw those individuals walking toward the Third Avenue Building.
Additional video footage (“Video-6”) from inside and outside the Third Avenue Building on August 12, 2014, from approximately 6:17 a.m. to 6:21 a.m., shows that Suspect-1 and Suspect-3 got out of a car, entered the Third Avenue Building, and went up in the elevator to the ninth floor. Approximately two minutes later, Suspect-2 and Suspect-4 got out of a car, entered the Third Avenue Building, and went up in the elevator to the ninth floor. Detective-3 has reviewed portions of Video-6. Detective-3 has seen Cab-1. He informed me that, on Video 6, Suspect-2 and Suspect-4 got out of a car that appears to be Cab-1.
The Complaint alleges that a cooperating witness (“CW-1”) was shown portions of Video-1. CW-1 said that Suspect-1 looked like “Mulla,” and identified Suspect-2 as “Kareem.” CW-1 was shown, among other things, portions of Video-6. CW-1 identified Suspect-1 as “Mulla.” CW-1 identified Suspect-2 as “Kareem.” CW-1 identified Suspect-3 as TYRONE FELDER, a/k/a “Man Man,” the defendant. CW-1 previously identified a picture of TAKIEM EWING as “Mulla.” CW-1 previously identified a picture of TYRONE FELDER as “Man Man.” CW-1 previously identified a picture of KAREEM MARTIN as “Kareem.”
The Complaint alleges that an NYPD sergeant (“Sergeant-1”) spoke with an individual in the management office for the Third Avenue Building, and learned that a certain individual (“Person-1”) leases an apartment with Person-1’s daughters on the ninth floor of the Third Avenue Building (the “Apartment”). Also according to the Complaint, the superintendent of the Third Avenue Building identified Suspect-1 as a person who lives in the Apartment with Suspect-1’s mother. Following his arrest in this case, TAKIEM EWING, a/k/a “Mulla,” the defendant, identified Person-1 as his mother.
Mr. Bharara praised the outstanding work of the FBI, the Yonkers Police Department, and the New York City Police Department.
The case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Michael Gerber and Scott Hartman are in charge of the prosecution.
The charges in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
TAKIEM EWING, a/k/a “Mulla,” 21, TYRONE FELDER, a/k/a “Man Man,” 25, and KAREEM MARTIN, a/k/a “Jamal Walker” 26, all of the Bronx, are each charged with one count of carjacking with intent to cause death and serious bodily harm in which a death resulted, which carries a maximum sentence of life in prison, or the death penalty. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge.
U.S. v. Takiem Ewing, Tyrone Felder, Kareem Martin complaint
The following joint statement was released Friday by FBI Special Agent in Charge William P. Woods, U.S. Attorney for the Eastern District of Missouri Richard G. Callahan and Acting Assistant Attorney General for the Civil Rights Division Molly MoranRead the Press Release
The former chief executive officer of Hanover Corporation was sentenced today to serve 14 years in prison, to be followed by three years of supervised release and ordered to pay $14,784,983.75 in restitution for orchestrating an $18 million Ponzi scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney David Rivera of the Middle District of Tennessee, Special Agent in Charge Todd McCall of the FBI’s Memphis Division and Special Agent in Charge Christopher Henry of the IRS-Criminal Investigation in Nashville made the announcement today after the sentence was handed down by U.S. District Judge Todd J. Campbell in the Middle District of Tennessee.
According to court documents, between January 2004 and August 2006, Terry Kretz, 61, of Gallatin, Tennessee, offered clients the opportunity to invest in Hanover through promissory notes bearing high interest rates. Kretz told clients that their money would be used for specific purposes, such as investing in stock options and startup companies. In fact, however, more than half of the money invested in Hanover went to repay earlier investors, to pay Hanover’s salaries and overhead and to fund personal luxuries, including Kretz’s purchase of a $600,000 residential building lot, a $176,000 contribution to a church, and golf memberships.
Kretz’ co-conspirators, Daryl Bornstein, a Hanover salesman, and Robert Haley, Hanover’s chief financial officer, previously pleaded guilty to similar charges and are scheduled to be sentenced on August 25, 2014.
The case was investigated by the FBI, IRS-CI, the Tennessee Bureau of Investigation, and the Tennessee Department of Commerce and Insurance. The case is being prosecuted by Trial Attorney Justin Goodyear of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Scarlett S. Nokes of the Middle District of Tennessee.Tax Preparer Sentenced to Federal Prison for Filing False Tax Returns and Identity TheftRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced that Senior U.S. District Judge James J. Brady sentenced SHYWANDA UNDERWOOD, age 39, of Clinton, Louisiana, yesterday for filing false and fraudulent tax returns and identity theft. The defendant was sentenced to 24 months imprisonment, 2 years of supervised release following imprisonment, an order to pay $287,658 in restitution, and an order to forfeit $14,389 in illegal proceeds.
The defendant was sentenced after being convicted of scheming to defraud the IRS from January 2011 through June 2011 by submitting approximately 76 false tax returns which sought refunds totaling approximately $375,000. In the returns, by misrepresenting the taxpayers’ income and falsely claiming various credits, among other means, the defendant fraudulently claimed that the taxpayers were entitled to significant refunds from the IRS. With respect to some of the false returns, the defendant filed the returns using the means of identification of individuals who had not authorized her to use their identities.
U.S. Attorney Green stated: “Our office will continue to aggressively pursue those who steal other individuals’ identities and submit false tax returns in an effort to line their own pockets.”
Gabriel L. Grchan, Special Agent-in-Charge of IRS – Criminal Investigation, stated, “Shywanda Underwood was sentenced related to her involvement in a scheme of identity theft and tax fraud. For her participation in this scheme, Ms. Underwood received 24 months to serve in federal prison. IRS - CI wants the would-be-criminals out there to understand that tax fraud does not pay.”
This investigation was conducted by IRS - Criminal Investigations and the United States Secret Service. The matter is being prosecuted by Assistant United States Attorney Cam T. Le.
Sturgis Sting Operation Nets Five Arrests for Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that the following five men have been arrested and federally indicted as a result of a sex trafficking undercover operation conducted during the 2014 Sturgis Motorcycle Rally, which ended August 9, 2014. All five men were indicted for Commercial Sex Trafficking and all are from out-of-state.
- Robert Clyde, age 65, of Fayetteville, North Carolina.
- Walter Curaba, age 44, of Glendora, California.
- Timithy Fielding, age 50, of Centerville, Pennsylvania.
- Phillip Holden, age 23, of Broken Bow, Nebraska.
- Alexandros Thymaras, age 32, of Calgary, Canada.
The arrests were a result of investigations by the South Dakota Internet Crimes Against Children Task Force. All of the defendants allegedly negotiated with law enforcement agents posing as pimps, and agreed to pay for sex with underage girls ranging from 12-15 years of age.
All five of the federal defendants are in the custody of the U.S. Marshals Service and made an initial appearance before a U.S. Magistrate Judge in Rapid City on August 12, 2014.
The crime of Commercial Sex Trafficking carries a mandatory minimum sentence of 10-15 years in prison up to a life maximum, and/or a $250,000 fine. The mandatory minimum prison sentence is determined by the age of the victim.
The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, the Meade County State’s Attorney’s office, Meade County Sheriff’s Office, Federal Bureau of Investigation, Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah Collins is prosecuting the cases.
SoCal Doctor Found Guilty of Distributing Addictive Painkillers and Laundering Monetary Proceeds of His Drug TraffickingRead the Press Release
LOS ANGELES – A Los Angeles-area doctor has been found guilty of federal drug trafficking charges for illegally distributing the powerful painkillers, such as Vicodin and Norco, and laundering the proceeds of his drug dealing.
Dr. Andrew Sun, 78, of La Mirada, was found guilty late Thursday by a federal jury in Los Angeles.
Following a three-day trial, the jury convicted Sun of 17 felony counts, including three counts of money laundering. Sun was found of guilty distributing controlled substances outside of the usual course of professional practice and without a legitimate medical purpose, including seven counts of distributing of hydrocodone (best known under the brand name Vicodin), four counts of distributing alprazolam (best known under the brand name Xanax), one count of distributing carisoprodol (best known under the brand name Soma), and two counts of distributing promethazine with codeine (known as the street as “purple drank” and “sizzurp”).
As a result of the guilty verdicts, Sun faces a statutory maximum sentence of 157 years in federal prison when he is sentenced by United States District Judge Manuel Real on November 10.
The case presented by federal prosecutors, at its core, involved a doctor who “profited by prescribing addictive pain killers and other controlled substances to persons whom he believed were drug addicts, and thus that defendant acted without a lawful medical purpose,” according to a court document that outlines the government’s case.
Sun, who operated medical clinics in San Gabriel and East Los Angeles, issued more than 24,000 prescriptions for controlled substances and Sun generated well over $1 million in cash proceeds from 2009 through 2012, the evidence at trial showed.
Law enforcement authorities conducted a series of undercover operations at Sun’s clinic. During each operation, Sun failed to conduct any physical examination and he sold prescriptions for $150 in cash – even when he believed he was writing prescriptions for drug addicts.
The jury heard recordings of the undercover operations in which Sun told his “patients” what symptoms they should feel in an effort to justify prescriptions for potent painkillers. During one interaction, Sun offered to write a prescription for maximum strength Vicodin and told the “patient” that “you got to tell me if there’s any pain anywhere.” The “patient” asked, “What’s a legitimate one? What’s a good one?” Sun suggested “back pain,” and the “patient” responded, “There you go. Sounds good to me.”
The evidence also included Medical Board disciplinary filings against Sun showing that he was subject to a separate undercover investigation in 2004, during which he prescribed Vicodin to patients even though they said they didn’t feel pain. The Medical Board placed Sun’s license on probation, which included a requirement that Sun document and report all of his prescriptions for Vicodin and other controlled drugs. As shown at trial, Sun falsified the records that he submitted to the Medical Board by reporting diagnoses that were never mentioned during his meetings with patients.
Judge Real also scheduled an August 25 hearing, at which time the court will consider if Sun will be ordered to forfeit nearly $350,000 in drug proceeds that were previously seized by the government.
The investigation into Sun was conducted by the Drug Enforcement Administration, IRS - Criminal Investigation, the California Medical Board, the California Department of Health Care Services and the Monterey Park Police Department.
Release No. 14-106
Rio Arriba County Sheriff Thomas R. Rodella and his Son Arrested on Federal ChargesRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez and Special Agent Carol K.O. Lee of the FBI’s Albuquerque Division announced Rio Arriba County Sheriff Thomas R. Rodella and his son, Thomas R. Rodella, Jr., were arrested this morning by the FBI on a federal indictment charging them with civil rights, firearms and falsification of documents charges.
Sheriff Rodella, 52, and Rodella, Jr., 26, both residents of Española, N.M., are charged in a five-count indictment that was filed under seal on Aug. 12, 2014, and unsealed earlier today following their arrests. The two men made their initial appearances in federal court in Albuquerque, N.M., earlier this morning.
The indictment against Sheriff Rodella and Rodella, Jr., arise out of a March 11, 2014 incident occurring in Rio Arriba County, N.M., during which the two men allegedly engaged in the high-speed pursuit and unreasonable seizure of a victim identified as “M.T.” Count 1 of the Indictment charges Sheriff Rodella and Rodella, Jr., with participating in a conspiracy to violate the victim’s civil rights by subjecting him to an unreasonable seizure while acting under color of law. Count 2 charges the two men with subjecting the victim to an unreasonable seizure while acting under color of law. It further alleges that the offense against the victim involved the use of a dangerous weapon and resulted in bodily injury to the victim. Count 3 charges Sheriff Rodella with brandishing a firearm during a crime of violence. Counts 4 and 5 charge Sheriff Rodella and Rodella, Jr., respectively, with making false statements in law enforcement reports regarding the events giving rise to charges in Counts 1 and 2 of the indictment.
According to the indictment, on March 11, 2014, Sheriff Rodella and Rodella, Jr., who were in the Sheriff’s personal vehicle, allegedly engaged in a high-speed pursuit of the victim and used the Sheriff’s vehicle to block the victim’s vehicle on a dead-end lane. It alleges that Sheriff Rodella, who was not in uniform, jumped out of his vehicle with firearm in hand, entered the victim’s vehicle, and assaulted the victim with the firearm. Rodella, Jr., allegedly dragged the victim out of his vehicle and identified the victim’s alleged assailant as the Sheriff. In response to the victim’s request to see his badge, Sheriff Rodella allegedly pulled the victim’s head up by his hair and slammed his badge into the victim’s face.
The indictment alleges that Sheriff Rodella instructed his deputies to arrest the victim and detain him at the Rio Arriba County Detention Center, and that the Sheriff and Rodella, Jr., falsely represented to the deputies that the victim had attempted to injure the Sheriff. According to the indictment, on March 12, 2014, the Sheriff and Rodella, Jr., each made false statements in law enforcement reports regarding the events underlying the victim’s arrest. Sheriff Rodella allegedly falsely wrote that the victim had driven his vehicle at a high rate of speed and tried to run him over. Rodella, Jr., allegedly falsely wrote that the victim’s vehicle accelerated towards the Sheriff and almost hit the Sheriff.
“A vast majority of law enforcement officers work courageously every day to make our communities safe,” said U.S. Attorney Damon P. Martinez. “Because those in uniform deserve our respect and support, it is vitally important to prosecute officers who violate their oaths of office and the public trust placed in them. The Department of Justice is committed to holding law enforcement officers accountable when they violate their sworn duty to uphold the Constitution.”
“As the lead agency for enforcing federal civil rights laws, the FBI wants to make it clear no one is above the law, regardless of what uniform you wear or rank you hold. Those charged with upholding the law must and will be held accountable,” said FBI Special Agent in Charge Carol K.O. Lee. “Let today’s arrests serve notice to those few out there who would tarnish their badge by violating the public trust: the FBI will thoroughly investigate each and every allegation, and the U.S. Attorney’s Office will prosecute you to the fullest extent of the law. I want to thank the FBI Special Agents and support staff for their work during this investigation, as well as the U.S. Attorney’s Office for their assistance in this case.”
If convicted on Counts 1 and 2, the conspiracy and civil rights charges, Sheriff Rodella and Rodella, Jr., each face a statutory maximum penalty of ten years in prison. Each man each faces a statutory maximum penalty of 20 years if convicted on Counts 4 and 5, the falsification of documents charge. If convicted on Count 3, the firearms charge, Sheriff Rodella faces a mandatory seven years in prison to be served consecutive to any sentence imposed on the other charges.
This case was investigated by the Albuquerque and Santa Fe offices of the FBI and is being prosecuted by Assistant U.S. Attorney Tara C. Neda.
The charges set forth in the indictment are merely accusations and the defendants are presumed innocent unless proven guilty.
- Rodella Indictment
Real Estate Developer and Mortgage Broker Plead Guilty to Mortgage Fraud SchemeRead the Press Release
Two Miami, Florida, residents pleaded guilty this week to participating in a mortgage fraud scheme involving the sale of condominium units in the Miami area.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Nadine Gurley of the Department of Housing and Urban Development’s Office of the Inspector General in Miami (HUD-OIG) and Acting Inspector General Michael P. Stephens of the Federal Housing Finance Administration (FHFA) made the announcement.
Luis Michael Mendez, 44, and Wilkie Perez, 39, each pleaded guilty to one count of conspiracy to commit bank fraud and wire fraud before U.S. District Court Judge Darrin P. Gayles in the Southern District of Florida. In their pleas, both defendants admitted that they participated in a scheme to place straw buyers in condominium units owned by real estate developers who are members of Mendez’s immediate family in return for a share of the profits.
As part of Mendez’s plea agreement, he admitted participating in a scheme to sell condominium units in developments controlled by members of his immediate family to straw buyers who would neither own nor be financially responsible for the properties. Mendez conspired with two Florida mortgage brokers to finance the fraudulent transactions with loans obtained by submitting false loan applications and supporting documentation. Mendez also admitted submitting false loan applications in his own name to purchase a number of properties. Following the purchase of the units, the seller funneled a portion of the sale proceeds to shell corporations controlled by Mendez. In total, Mendez admitted that his conduct caused a loss of over $3 million.
According to court papers, Perez was a licensed mortgage broker who owned Kinetic Mortgage Group, Inc., a mortgage brokerage company in Miami, Florida. Perez admitted that he and Luis Mendez, one of Mendez’s immediate family members who owned and controlled the real estate developments, entered into an agreement in which Perez arranged for straw buyers to obtain financing to purchase units controlled by Luis Mendez by, among other things, submitting to financial institutions loan applications and supporting documents containing false information about buyers’ employment, income, and assets. Luis Mendez paid kickbacks to Perez out of the loan proceeds following the closings on the properties. Perez, in turn, used a portion of the kickback payments to compensate straw buyers for the use of their identities and credit information. In total, Perez admitted to obtaining more than $2.5 million in fraudulent loans.
Mendez and Perez were indicted by a federal grand jury on March 31, 2014, with Luis Mendez, Stavroula Mendez, Marie Mendez, and Enrique Angulo, who have entered pleas of not guilty and are scheduled for trial beginning Sept. 8, 2014. The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The case is being investigated by HUD-OIG and FHFA. The case is being prosecuted by Trial Attorneys Gary A. Winters and Brian Young of the Criminal Division’s Fraud Section.Real Estate Developer and Mortgage Broker Plead Guilty to Mortgage Fraud SchemeRead the Press Release
Two Miami, Florida, residents pleaded guilty this week to participating in a mortgage fraud scheme involving the sale of condominium units in the Miami area.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Nadine Gurley of the Department of Housing and Urban Development’s Office of the Inspector General in Miami (HUD-OIG) and Acting Inspector General Michael P. Stephens of the Federal Housing Finance Administration (FHFA) made the announcement.
Luis Michael Mendez, 44, and Wilkie Perez, 39, each pleaded guilty to one count of conspiracy to commit bank fraud and wire fraud before U.S. District Court Judge Darrin P. Gayles in the Southern District of Florida. In their pleas, both defendants admitted that they participated in a scheme to place straw buyers in condominium units owned by real estate developers who are members of Mendez’s immediate family in return for a share of the profits.
As part of Mendez’s plea agreement, he admitted participating in a scheme to sell condominium units in developments controlled by members of his immediate family to straw buyers who would neither own nor be financially responsible for the properties. Mendez conspired with two Florida mortgage brokers to finance the fraudulent transactions with loans obtained by submitting false loan applications and supporting documentation. Mendez also admitted submitting false loan applications in his own name to purchase a number of properties. Following the purchase of the units, the seller funneled a portion of the sale proceeds to shell corporations controlled by Mendez. In total, Mendez admitted that his conduct caused a loss of over $3 million.
According to court papers, Perez was a licensed mortgage broker who owned Kinetic Mortgage Group, Inc., a mortgage brokerage company in Miami, Florida. Perez admitted that he and Luis Mendez, one of Mendez’s immediate family members who owned and controlled the real estate developments, entered into an agreement in which Perez arranged for straw buyers to obtain financing to purchase units controlled by Luis Mendez by, among other things, submitting to financial institutions loan applications and supporting documents containing false information about buyers’ employment, income, and assets. Luis Mendez paid kickbacks to Perez out of the loan proceeds following the closings on the properties. Perez, in turn, used a portion of the kickback payments to compensate straw buyers for the use of their identities and credit information. In total, Perez admitted to obtaining more than $2.5 million in fraudulent loans.
Mendez and Perez were indicted by a federal grand jury on March 31, 2014, with Luis Mendez, Stavroula Mendez, Marie Mendez, and Enrique Angulo, who have entered pleas of not guilty and are scheduled for trial beginning Sept. 8, 2014. The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The case is being investigated by HUD-OIG and FHFA. The case is being prosecuted by Trial Attorneys Gary A. Winters and Brian Young of the Criminal Division’s Fraud Section.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Poteau Man Sentenced to 63 Months for Methamphetamine DistributionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that TOMAS CAMARGO-CHAVEZ, a/k/a Thomas Camargo, a/k/a Thomas Camargo-Chavez, a/k/a Scarface, age 39, of Poteau, Oklahoma, was sentenced to 63 months imprisonment, followed by 3 years of supervised release for Possession of a Controlled Substance with Intent to Distribute, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C).
The charge is a result of an investigation by the Oklahoma Bureau of Narcotics and Department of Homeland Security Investigations. The defendant was indicted in January 2014 and pled guilty in May 2014.
The Indictment alleged that on or about September 26, 2013, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with the intent to distribute a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Kyle Waters represented the United States.
Portales Man Pleads Guilty to Using Telephone in Attempt to Commission a Murder-For-HireRead the Press Release
ALBUQUERQE – Cody Guss, 37, of Portales, N.M., pleaded guilty this morning to an indictment charging him with using a telephone in interstate commerce to commission a murder-for-hire. Guss entered his guilty plea without the benefit of a plea agreement.
Guss was arrested on March 27, 2014, on a criminal complaint charging him with using a cellular telephone in interstate commerce to commission a murder-for-hire. He was indicted on that same charge in April 2014. According to the indictment, on March 26, 2014, Guss used a telephone to negotiate the commission of a murder in exchange for $5,000.00. The offense was committed in Curry County, N.M.
According to court filings, between Feb. 27, 2014 and March 26, 2014, Curry had telephone communications with an undercover officer of the Amarillo (Texas) Police Department during which he contracted for the officer to murder his wife. The communications occurred while Guss was in New Mexico and the officer was in Texas. On March 26, 2014, Guss met with the officer in Clovis, N.M., to finalize plans for the murder. During the meeting, Guss gave the officer a key to his residence and made arrangements for the officer to enter the residence while his wife was alone in the residence.
During this morning’s proceedings, Guss entered a guilty plea to the indictment. Guss has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. He faces a statutory maximum penalty of ten years in prison.
This case was investigated by the Roswell office of the FBI with assistance from the Amarillo (Texas) Police Department, and is being prosecuted by Assistant U.S. Attorneys Paul Mysliwiec and Norman Cairns.