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12 August 2014
Russell Springs, Kentucky, Business Pays $750,000 in Restitution and Forfeitures for Role in Contraband Cigarette TraffickingRead the Press Release
BOWLING GREEN, Ky. – Tantus Tobacco, LLC, a Russell Springs, Kentucky, company paid $750,000 in restitution and forfeitures this week, in U.S. District Court, after being sentenced by Chief Judge Joseph H. McKinley Jr., on a single charge of conspiracy to engage in contraband cigarette trafficking, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Tantus Tobacco, LLC pleaded guilty to a Superseding Information and paid restitution in the amount of $200,000 to the Kentucky Revenue Cabinet in lost taxes and $60,000 to the Kentucky Attorney General’s Office for its assistance in the tobacco investigation. Tantus Tobacco, LLC forfeited $490,000 to the United States.
Tantus Tobacco, a cigarette manufacturing facility located in Russell Springs, Kentucky, acting by and through its officers and employees, aided and abetted by Jerry Burke and Charles Wells, pleaded guilty to making false material statements in reports required to be made to governmental tobacco regulatory divisions of the United States and the State of Mississippi between October 2007 through July 2008. Charles Wells was sentenced in U.S. District Court located in Aberdeen, Mississippi, to 24 months in prison and two years of supervised release on August 8, 2011. Jerry Burke was sentenced in U.S. District Court located in Aberdeen, Mississippi, to 24 months in prison, two years of supervised release and ordered to pay $525,000 in restitution, on January 19, 2011.
According to the plea agreement, from at least January 2008 to May 2008, Tantus Tobacco manufactured Berley and Berkley brand cigarettes, which they sold to Charles Wells, a cigarette wholesale distributor in Kentucky. Escrow payments are due on the Berley cigarettes, but not the Berkley. Wells would obtain the cigarettes directly from the Tantus Tobacco facility located in Russell Springs, Kentucky. However, Tantus Tobacco aided and abetted the creation of false documentation indicating that the cigarettes had been sold to J&B Wholesale (owned and operated by Jerry Burke) in Mississippi, which false documents were submitted to the State of Mississippi. These false documents allowed Tantus Tobacco to avoid making manufacturer Non-Participating Manufacturer escrow payments on the subject cigarettes and to sell the cigarettes to Wells at a discount. J&B Wholesale, in turn, submitted false and fraudulent Mississippi Tobacco Excise Returns reporting that the cigarettes were received and sold in Mississippi to the State Tax Commission in Mississippi in violation of tobacco sales reporting requirements. These false Mississippi Tobacco Excise Returns were submitted, in whole or in part, due to the cigarette diversion scheme described above in which Tantus Tobacco was an active participant.
A wholesaler selling cigarettes in Mississippi must file a monthly Tobacco Excise Return with the State Tax Commission showing the number of unstamped cigarettes received that month, plus the cigarettes stamped and available for sale that month, plus the cigarettes sold to licensed wholesalers and exempt persons that month, as well the cigarettes shipped or sold out of state, and the net taxable cigarettes and other pertinent information.
This case was prosecuted by Special Assistant United States Attorney Robert Mims (Northern District of Mississippi), Assistant United States Attorney Randy Ream, and was investigated by the Federal Bureau of Investigation (FBI) Mississippi Division, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Rochester Man, A Registered Sex Offender, Sentenced to 45 Years for Attempting to Entice A Minor and to Produce Child PornogrpahyRead the Press Release
ALBANY, NEW YORK – JOHN DOOLEY, age 57, of Rochester, New York, was sentenced today by Senior United States District Judge Thomas J. McAvoy to 45 years of imprisonment for (1) attempted enticement of a minor to engage in sexual activity; (2) attempted production of child pornography, and (3) committing a felony offense involving a minor while already required to registered as a sex offender, announced United States Attorney Richard S. Hartunian, Saratoga Springs Police Chief Gregory Veitch, and Andrew W. Vale, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Division. A jury found DOOLEY guilty of the offenses in October 2013 following a three-day trial.
DOOLEY, a registered Level III sex offender with two previous convictions for sexual abuse of a minor, was arrested on May 11, 2012, in Saratoga Springs, New York, after he travelled there to meet “Kara,” a fifteen year old girl he met in a Yahoo! chat room. “Kara” was actually an undercover Saratoga Springs Police Investigator, and DOOLEY had been communicating with “Kara” for one and one-half months via Yahoo! Messenger. During the online communications, the undercover investigator repeatedly told DOOLEY that “Kara” was 15. DOOLEY told “Kara” that he would travel to Saratoga Springs, rent a motel room, have sex with her, and capture that sexual conduct on digital photo and video. On May 11, 2012, Dooley drove from Rochester to Saratoga Springs, checked into his motel room, and brought with him various sexual devices, vodka, computer equipment, cameras, and presents for “Kara,” including lingerie.
This prosecution resulted from an investigation conducted by the Saratoga Springs Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
Repeat Sex Offender Pleads Guilty to Distribution of Child PornographyRead the Press Release
NASHVILLE, Tenn. – August 11, 2014 – Christopher Troy Sullivan, 40, of Joelton, Tennessee, pleaded guilty yesterday in U.S. District Court in Nashville to distribution of child pornography, announced David Rivera, United States Attorney for the Middle District of Tennessee.
Sullivan is a registered sex offender, having been previously convicted in 2004 of aggravated sexual exploitation of a minor in Davidson County, Tenn. He now faces a minimum mandatory sentence of 15 years in prison
According to court documents, from approximately December 2010 through May 2012, Sullivan possessed and distributed child pornography. Sullivan admitted that he created a fake profile on the social media website “Facebook” to initiate and maintain an online relationship with a teenage girl over the course of several months. During the relationship, Sullivan obtained hundreds of nude and sexually explicit images of the girl. He then distributed those images to others and created additional false online profiles, pretending to be the girl, in order to induce other teenage girls to also send him nude images.
Law enforcement officers from the Metropolitan Nashville Police Department seized several items of electronic equipment from Sullivan’s home in Joelton, Tenn. Analysis of the equipment revealed that Sullivan had obtained over 1,400 images of child pornography, which were located in hidden electronic file folders.
Sullivan is scheduled for sentencing before U.S. District Judge Aleta A. Trauger on October 27, 2014, at 2:30 p.m.
This matter was investigated by the Metropolitan Nashville Police Department, the Cheatham County Sheriff’s Department, the Davidson County Probation and Parole Office and the Minnesota Bureau of Criminal Apprehension. The case is being prosecuted by Assistant United States Attorneys Lynne T. Ingram and Louis A. Crisostomo.Portland Gang Associate Sentenced to 15 Years in Prison After Being Convicted on Federal Gun ChargeRead the Press Release
Defendant, an Armed Career Criminal, told the police he was “hunting” a rivalPORTLAND, Ore. – August 11, 2014, Eddie Ray Strickland, Jr., 35, of Portland, Oregon, was sentenced to 15 years in federal prison after he was convicted of being a felon in possession of a firearm and the Court finding that he qualified as an Armed Career Criminal. Following his federal prison sentence Strickland will be required to serve three years of supervised release, which includes a condition prohibiting the defendant from associating with any known gang members.
On July 27, 2011, the defendant, a multi-convicted felon, was arrested and found in possession of two loaded firearms that were located inside of his residence. Earlier that day, the Portland Police Bureau’s Gun Task Force received information that the defendant had been in numerous fights with his girlfriend and during the most recent altercation he held a gun to her head and said “[i]f you don’t shut up, I’ll kill you and everyone else in the house.” This incident occurred in front of her young children. Officers also received information that about a month prior to this incident the defendant had also threatened his girlfriend with a gun and then fired a shot in her direction which left a hole in the couch she was sitting on. The officers knew the defendant was a felon and thus prohibited from possessing a firearm. With this information officers applied for a state search warrant, which was granted. Later that day, officers executed the search warrant on the defendant’s residence located on NE 49th Avenue, Portland, Oregon.
During the execution of the warrant by the Portland Police Bureau Special Emergency Reaction Team (SERT), officers found two loaded firearms, a Kel-Tec .380 caliber handgun and a Taurus .40 caliber handgun, inside a crawl space under the stairs.
After he was arrested, Portland Police Detectives with the Gang Enforcement Team interviewed the defendant. During the interview the defendant admitted that the two firearms were his and that he had the guns for “protection.” When the detectives asked why he needed the guns for “protection,” the defendant told the detectives that he and another person have both been looking for each other and they want to shoot each other. The defendant believed the other individual killed his brother in a gang shooting so the defendant was “hunting” him in an effort to try and kill him or the person’s brother. The other individual knew this, and according to the defendant, the other individual had been trying to kill the defendant before the defendant gets to him. Thus, as the defendant told the detectives, he needed the guns for “protection.” The defendant also said he had two guns so he could carry one and leave the other in the house.
The defendant was indicted in federal court on August 10, 2011, for felon in possession of a firearm and pled guilty to the charge on October 16, 2013. At the time the defendant possessed the firearms he had previously been convicted of, and received state prison sentences for, the following felony crimes:
● Attempted Robbery in the First Degree, in 2005;
● Attempted Robbery in the First Degree, in 2005;
● Unlawful Possession of Firearm in the First Degree, in 1999; and,
● Robbery in the Third Degree, in 1998.
“When Congress passed the Armed Career Criminal Act, the defendant was exactly the type of criminal it had in mind – an individual who repeatedly engages in violent felonies and places the community at substantial risk of harm,” noted U.S. Attorney S. Amanda Marshall. “When a batterer has a gun, the risk of intimate partner homicide is increased more than five times than in instances where there are no weapons. Quite simply, without police intervention, this defendant was a homicide waiting to happen. This lengthy prison sentence protects the public from this defendant and also sends a strong message of deterrence to violent felons that they will pay a steep price for unlawfully possessing firearms.”
This case was investigated by the Portland Police Bureau’s Gun Task Force, Portland Police Bureau’s Gang Enforcement Team, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case was prosecuted by Assistant U. S. Attorney Scott Kerin, the Chief of the U.S. Attorney’s Office Drug Unit and former head of the Gang and Sex Trafficking Prosecution Team.
Plummer Man Pleads Guilty to Aggravated AssaultRead the Press Release
COEUR D’ALENE – Desmond J. Seyler, 26, of Plummer, Idaho, pleaded guilty on August 12, 2014 to assault resulting in serious bodily injury, U.S. Attorney Wendy J. Olson announced. Seyler was indicted by a federal grand Jury in Coeur d'Alene on June 7, 2014.
At the plea hearing, Seyler admitted that on May 13, 2014, he fractured a female relative’s jaw when he hit her in the face. The offense happened on the Coeur d’Alene Indian Reservation. Both Seyler and his victim are members of federally recognized tribes.
The charge of assault resulting in serious bodily injury is punishable by up to 10 years in prison, a maximum fine of $250,000, and up to 3 years of supervised release.
Sentencing is set for November 4, 2014, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Coeur d’Alene.
The case was investigated by the Coeur d’Alene Tribal Police and the Federal Bureau of Investigation.
Philadelphia Man Charged with Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a criminal Information was filed today charging a Philadelphia resident with participating in a conspiracy to distribute heroin in the Hazleton area of Luzerne County during May through June of this year.
According to United States Attorney Peter Smith, the Information alleges that Edwin Laureano-Suarez, age 34, conspired with others to distribute and possess with intent to distribute heroin in Luzerne County and elsewhere.
The charge stems from an investigation by special agents of the Federal Bureau of Investigation and Scranton Police.
Laureano-Suarez faces a potential maximum sentence of 20 years in prison and a $1 million fine if he is convicted of the charge.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Perry County Man Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
Follow @SDILNewsOn August 8, 2014, a Perry County, Illinois, man pled guilty to an indictment, charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Thomas D. Tindall, 21, of Willisville, pled guilty to a one-count indictment charging conspiracy to manufacture methamphetamine. The offense occurred between 2012 and February 2014, in Jackson, Randolph, and Perry Counties. The factual basis for the guilty plea established that Tindall was involved with others, including juveniles, in the manufacture of methamphetamine. During a February 20, 2014, search of defendant’s vehicle and residence, agents located methamphetamine, methamphetamine-making materials, and drug paraphernalia. Tindall is currently being held without bond pending a November 21, 2014, sentencing hearing.
The methamphetamine offense carries a penalty of up to 20 years’ imprisonment, to be followed by 3 years’ supervised release, and a fine of $1,000,000.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Coulterville Police Department, Randolph County Drug Task Force, Steeleville Police Department, Percy Police Department, Illinois State Police Methamphetamine Response Team, and Drug Enforcement Administration. The Randolph County States Attorney’s Office also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Owner of Local Payroll Services Company Pleads Guilty to Fraud and Money Laundering ChargesRead the Press Release
St. Louis, MO – BRADLEY FERGUSON, owner of Fenton-based Paymaster Business Solutions, Inc., pled guilty to mail fraud and money laundering charges involving his failure to remit federal, state and local taxes to the proper taxing authorities that had been deducted from victim client bank accounts. Ferguson also failed to remit FICA withholding to the IRS on behalf of his business clients. Ferguson’s clients included churches, youth organizations, child daycare facilities, law firms and other businesses throughout the St. Louis area.
According to court documents, from January 2005 through January 2014, Ferguson drafted funds directly from Paymaster business clients’ bank accounts in order to pay their federal, state and local tax liabilities. However, Paymaster, at Ferguson’s direction, failed to forward the Paymaster business clients’ funds to the taxing authorities in order to pay their tax liabilities then due and owing. Paymaster drafted in excess of $2,700,000 from Paymaster business clients’ bank accounts to pay client’s federal, state and local tax liabilities, as well as FICA liabilities, for the period July 2013 through December 2013, but were not forwarded to the proper taxing authorities. Additionally, Ferguson,as Power of Attorney for Paymaster business clients, was contacted directly by the IRS and questioned as to the failure of the payments of client federal tax liabilities. Fergusondid not tell his clients about the IRS inquiries. When clients occasionally learned that Paymaster had not forwarded their funds to the taxing authorities, Ferguson lied to them and told them Paymaster had made the payments. In December 2013, Ferguson retained the services of a commercial shredding company and directed that the Paymaster business client records be shredded and removed from the Paymaster offices.
Ferguson, Washington, MO, pled guilty to one felony count of mail fraud and one felony count of money laundering before United States District Judge E. Richard Webber. Sentencing has been set for November 6, 2014.
Additionally, Ferguson is subject to a forfeiture allegation, which will require the forfeiture to the government of all money derived from the illegal activity.
Mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000; money laundering carries a maximum of 5 years. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation, Postal Inspection Service and Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney's Office.
Notice of Press ConferenceRead the Press Release
August 11, 2014Contact Person: Beth Drake (803) 929-3000
WHEN: WHERE: 55 Beattie Place, 17th Floor
Columbia, South Carolina -----United States Attorney Bill Nettles will announce a significant development in the Ronnie Gene Wilson and Atlantic Bullion & Coin case.
Commerce Club (Paris Ballroom)
Greenville, South Carolina 29601
Press inquiries should be directed to Beth Drake, (803) 929-3061. All press should be in place before 1:30 p.m. for a 2:00 p.m. start. Parking is available in the parking garage between Liberty Towers 1 and 2. The USAO does not validate parking; and it is an automated parking facility, accepting cash or credit card payments.Northern Virginia Dermatologist Charged with Health Care FraudRead the Press Release
**UPDATE** Nov. 30, 2015 - Dr. Bajoghli was found not guilty on all counts after a 16-day trial. Original press release announcing the indictment is below.
ALEXANDRIA, Va. – Amir Bajoghli, 44, of McLean, Virginia—a dermatologist, the owner of the Skin & Laser Surgery Center and a former Washingtonian magazine “Top Doctor”—was indicted by a federal grand jury today on 60 counts of health care fraud, aggravated identity theft and obstruction of justice.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Timothy A. Gallagher, Acting Assistant Director in Charge of the FBI’s Washington Field Office; Nicholas DiGiulio, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services(HHS); Robert Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office; and Patrick E. McFarland, Inspector General of the U.S. Office of Personnel Management (OPM), made the announcement.
According to the indictment, from 2009 to 2012, Bajoghli defrauded various health care benefit programs through his medical practice, the Skin and Laser Surgery Center, which had offices in Stafford, Woodbridge and Vienna, Virginia, and in Washington, D.C.
First, the indictment charges that Bajoghli intentionally misdiagnosed patients with skin cancer, performed unnecessary and invasive Mohs micrographic surgery on patients’ benign skin tissue and submitted claims to health care benefit programs on the basis of fraudulent skin cancer diagnosis codes and false certifications that the procedures had been medically necessary for the health of the patients. According to the indictment, Bajoghli also at times billed health care benefit programs for Mohs surgeries that he did not in fact perform. Bajoghli also allegedly directed his staff to improperly dispose of medical waste at his practices.
Second, the indictment charges that Bajoghli directed his unlicensed and unqualified medical assistants to perform wound closures, including complex suturing and skin grafts, on Mohs surgery patients at follow-up office visits. The indictment alleges that during these procedures, Bajoghli was seeing patients at other office locations and critical decisions regarding patient care were left to the medical assistants’ judgment. In addition, the procedures were fraudulently billed to health care benefit programs as if Bajoghli had performed or personally supervised the procedures. The obstruction of justice charge alleges that, during the course of the government’s investigation, Bajoghli directed his office staff to tell inquiring patients that he had personally performed their wound closures, regardless of whether that was in fact true.
Third, the indictment charges that Bajoghli fraudulently billed health care benefit programs under his provider number for services rendered by his nurse practitioner and physician’s assistant when he was not present at the office where the services were provided. Bajoghli is alleged to have fraudulently certified to health care benefit programs that he had personally provided or personally and immediately supervised the services. The alleged conduct, at times, amounted to Bajoghli fraudulently billing as if he was seeing patients at three locations at once.
Finally, the indictment charges that Bajoghli defrauded health care benefit programs with respect to billing for the preparation and evaluation of permanent section biopsy slides. The indictment alleges that Bajoghli paid an Ohio company approximately $5 per slide to prepare the slides and a Connecticut dermatopathologist approximately $10 per slide to evaluate them, render diagnoses and prepare pathology reports. According to the indictment, Bajoghli and the dermatopathologist falsely represented the reports as Bajoghli’s work product to allow the dermatopathologist to avoid malpractice exposure, and Bajoghli fraudulently billed both the preparation and evaluation of the specimens at up to $450 per slide as if he had performed both services.
If convicted, Bajoghlifaces a maximum penalty of ten years in prison on each health care fraud count, a mandatory two-year consecutive sentence for each of the aggravated identity theft counts, and a maximum penalty of 20 years in prison on the obstruction of justice count.
This case was investigated by the FBI’s Washington Field Office, HHS’s Office of the Inspector General, DCIS and OPM’s Office of the Inspector General. Assistant U.S. Attorney Paul J. Nathanson is prosecuting the case.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-278.
Niobrara Woman Sentenced for Theft in Indian CountryRead the Press Release
United States District Court Judge Joseph F. Bataillon sentenced Lila Mechaley, age 53 of Niobrara, Nebraska, upon her conviction for theft of funds on the Santee Sioux Indian Reservation. Judge Bataillon ordered Mechaley to serve five years of probation and to perform 200 hours of community service. Mechaley was also ordered to pay restitution in the amount of $16,726.22 to the Village of Santee.
Mechaley was the Village Clerk for the Village of Santee during the 2010 to 2012 timeframe. As the Village Clerk, Mechaley maintained possession of the checkbook utilized by the village and was the bookkeeper on the account. She also had signature authority on the account. Beginning in March of 2010 and continuing through June of 2012, Mechaley wrote unauthorized checks to herself totaling $16,726.22. Although the Village of Santee required two signatures on all checks, Mechaley signed the checks in her capacity as Village Clerk and she also forged the signature of the Chairman of the Village Board. The theft of funds was discovered by the Vice President of the Village Board when he gathered bank statements and cancelled checks in order to provide information relating to a grant which had been awarded to the Village of Santee.
This case was investigated by the Federal Bureau of Investigation.
Nigerian Scammer Nabbed by U.K. AuthoritiesRead the Press Release
Was Wanted On Indictment Pending in Southern Illinois
Follow @SDILNewsA citizen of the Federal Republic of Nigeria, wanted in connection with a recently unsealed indictment returned by a federal grand jury in the Southern District of Illinois, was arrested on Saturday, August 9, 2014, in London, England, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. Olayinka Ilumsa Sunmola, 31, of Lagos, Nigeria, was arrested by London's Metropolitan Police as he was about to board a British Airways flight at Heathrow airport bound for Johannesburg, South Africa, where he currently resides and conducts his activities.
Sunmola was indicted on November 20, 2013, in an eight count suppressed indictment charging him with various federal criminal offenses in connection with his operation of a romance scam targeting women in the United States. According to the indictment, Sunmola created several bogus online profiles on dating websites portraying himself as a U.S. citizen currently or formerly in the Armed Forces of the United States and temporarily doing business in South Africa. Over the course of several months, the indictment states, Sunmola cultivated a romantic relationship with each victim. He sent them flowers, stuffed animals, greeting cards and candy. His purpose was to lead each of his victims to believe that she was his one true love, his sole love interest, and the woman with whom he intended to spend the rest of his life, the indictment states. After successfully drawing women into a romantic relationship, Sunmola then began to manufacture phony emergencies requiring increasingly large amounts of money from his victims. He played upon each victim's romantic feelings and vulnerability and manipulated and groomed them for the purpose of bilking them of their cash, their assets and their credit worthiness. According to the indictment, Sunmola victimized least thirty women in the United States.
One victim described in the indictment was unwittingly drawn into a scheme involving counterfeit or stolen traveler's checks. As a result of her innocent involvement in cashing the checks for Sunmola, she was arrested by local police and jailed, charged with theft by deception and forgery, the indictment alleges. The indictment also alleges that another victim, a resident of the Southern District of Illinois, was induced to purchase a web cam and then pose in a sexually suggestive position. She learned only after it was too late that Sunmola was making a video recording. He thereafter threatened to post the sexually suggestive photos on the internet. According to the indictment, Sunmola told the woman that by the time he was done with her she would want to kill herself. He pledged to ruin her life if she did not continue to send him the money he demanded.
Sunmola was charged with conspiracy, mail and wire fraud, and extortion. If convicted of all offenses, he faces a maximum prison sentence of 127 years, a fine of $100,000 on each of the eight counts of the indictment, and five years of supervised release. A trial date will be set after extradition proceedings, which could take several months, have been completed.
The case was investigated by the St. Louis Field Office of the Chicago Division of the U.S. Postal Inspection Service. The St. Louis Resident Agency of Homeland Security Investigations, U.S. Department of Homeland Security and the Fairview Heights office of U.S. Secret Service assisted in the investigation. The Illinois Attorney General's Office referred the matter to the U.S. Attorney's Office for investigation as part of an ongoing partnership between the two offices to identify, investigate and prosecute international scammers who prey upon Illinois residents. This prosecution is also part of a larger initiative with the Chicago Office of the Federal Trade Commission to target romance scammers.
The prosecution is being handled by Assistant United States Attorneys Bruce Reppert and Nathan Stump.
An indictment is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
New Indictment in Campaign Finance Case Adds Gun, Bribery and Falsification of Records ChargesRead the Press Release
San Diego – A federal grand jury issued a new indictment this morning against Mexican businessman Jose Susumo Azano Matsura and alleged co-conspirators Ravneet Singh, his Washington, D.C.-based campaign-services company ElectionMall Inc. and San Diego lobbyist Marco Polo Cortes, detailing 26 counts of various campaign-finance, falsification of records, bribery, and gun charges.
Besides adding numerous charges, the superseding indictment also brings the defendants into a single case and alleges they were part of a broader conspiracy to illegally and surreptitiously funnel Azano’s money into various political campaigns and committees, including those of three San Diego mayoral candidates and a political party committee supporting federal candidates. The indictment details approximately $600,000 in such illegal donations. According to federal law, it is illegal for a foreign national to donate to political campaigns in the U.S.
The most-recent indictment lists 20 instances in which various defendants allegedly falsified campaign finance records with the San Diego City Clerk, the Federal Election Commission, or the California Secretary of State. Specifically, the indictment lists multiple occasions in which the defendants failed to identify Azano as the true source of campaign donations or concealed the donation altogether.
The new indictment also charges Singh, a social media consultant, and his corporation, ElectionMall Inc., with a single count of bribery. According to the indictment, Singh offered $1,000 to a federal official in exchange for confidential and classified information between December of 2013 and January of 2014. The superseding indictment also charges that Azano was an alien in possession of a firearm, namely, a black Sig Sauer P225 semi-automatic pistol. Federal law prohibits possession of firearms, ammunition or explosives by an alien who is unlawfully in the United States or who has been admitted to the United States under a nonimmigrant visa.
Among other things, the new indictment alleges that members of the conspiracy would survey candidates for various elective offices to determine which ones to support. Azano would seek a private meeting with a candidate and conspirators would then design secret methods of financing that candidate’s campaign. They would use various methods to inject the cash into campaigns – including straw donors and un-reported in-kind donations. Azano would also use companies and an independent expenditure committee of his own creation to support favored candidates, the indictment alleges.
Singh, his corporation, Cortes and retired San Diego Police Detective Ernesto Encinas were first charged in January of 2014 via complaint. Azano, Singh, ElectionMall and Cortes were first indicted in February of 2014.
Ernesto Encinas, a former San Diego police detective and owner of a private security firm, pleaded guilty in March to conspiracy to commit crimes against the United States and filing a false tax return.
Marc Allen Chase, a co-owner of a La Jolla luxury car dealership, pleaded guilty in March to eight misdemeanor counts of campaign finance crimes, including conspiracy, aiding and abetting contributions by a foreign national and making a “straw” contribution in connection with a federal campaign.
DEFENDANT Case Number: 14CR388-MMA Jose Susumo Azano Matsura Age: 48 Coronado, CA Ravneet Singh Age: 41 Washington, D.C. ElectionMall Inc. Washington, D.C. Marco Polo Cortes Age: 44 San Diego, CA CHARGESCount 1: Conspiracy to Commit Offenses Against the United States – Title 18, U.S.C., Sec. 371.
Maximum Penalties: Up to five years in prison and $250,000 fine
*All DefendantsCount 2: Conspiracy to Commit Offenses Against the United States – Title 18, U.S.C., Sec. 371.
Maximum Penalties: Up to five years in prison and $250,000 fine
*Azano and Cortes onlyCount 3: Donation and Contribution by a Foreign National Aggregating $25,000 or more – Title 2, U.S.C., Secs. 437g (d) (1) (A) (i) and 441e (A) (1).
Maximum Penalties: Up to five years in prison and $250,000 fine
*All DefendantsCount 4: Contribution in the Name of Another Aggregating $25,000 or more – Title 2, U.S.C., Secs. 437g(d) (1) (A) (i) and 441f.
Maximum Penalties: Up to five years in prison and $250,000 fine
*Azano and Cortes onlyCounts 5-24: Falsification of Records – Title 18, U.S.C., Sec. 1519.
Maximum Penalties: Up to 20 years in prison per count and $250,000 fine per count.
*All defendants charged with one or more countsCount 25: Bribery – Title 18, U.S.C., Sec. 201(b).
Maximum Penalties: Up to 15 years in prison and $250,000 fine
*Singh and ElectionMall Inc. onlyCount 26: Alien in Possession of a Firearm - Title 18, U.S.C., Sec. 922 (g) (5) (B).
INVESTIGATING AGENCY
Maximum Penalties: Up to 10 years in prison and $250,000 fine
*Azano onlyFederal Bureau of Investigation
Internal Revenue Service
San Diego Police Department*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Nashville Tax Return Preparer Sentenced to Three Years in Prison for Role in Million Dollar Tax Refund SchemeRead the Press Release
NASHVILLE, Tenn., - August 12, 2014 - Carolina Serrano, 42, of Nashville, Tenn., was sentenced on August 8, 2014, by Chief Judge Williams J. Haynes to serve three years in prison for her participation in a tax refund fraud conspiracy that resulted in the payment of more than $1 million dollars in fraudulent federal tax refunds, announced U.S. Attorney David Rivera. Judge Haynes also ordered Serrano to pay $1 million dollars in restitution, and in lieu of cash, ordered that she forfeit any property she owned that was collectively worth up to $1 million dollars.
At a plea hearing in November 2013, Serrano admitted that she had conspired with two co-defendants and others to defraud the United States; to aid in the theft of government money; to engage in mail fraud; and to prepare false tax returns. Serrano confessed that between 2011 and October 2013, she prepared fraudulent federal tax returns for other participants in the scheme using aliases, false employment and earnings, non-existent dependents and other false information, to generate tax refunds which were not owed.
Serrano also admitted that she referred accomplices to certain individuals whom she knew would cash the refund checks, despite the fact that the person presenting the check was not the payee. Serrano agreed that she had thereby helped others obtain more than $1 million in fraudulent tax refunds.
“This was not a case in which someone simply cheated on their taxes by lying about their true earnings or deductions, which is also a serious crime,” said United States Attorney David Rivera. “This case involved an orchestrated wholesale scheme to blatantly steal taxpayer money in the form of tax refunds, of which the participants were entitled to nothing. When, as here, the evidence demonstrates a defendant’s guilt beyond a reasonable doubt, this office will seek a sentence that accurately reflects the financial harm inflicted by such a defendant on the honest American taxpayer.”
Also charged in the case were Elizabeth Navas and Gregoria Perez-Ortiz, both of Nashville and both of whom have previously pleaded guilty. Navas will be sentenced on August 15, 2014, and Perez-Ortiz will be sentenced on August 18, 2014.The case was jointly investigated by the IRS-Criminal Investigation, Homeland Security Investigations and the Postal Inspection Service. The government was represented by Assistant U.S. Attorney Hilliard Hester.
Moldovan Man Sentenced for in Wire Fraud ConspiracyRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr., announced today that Iurie Stratenco, 26, a citizen of Moldova, who was convicted of wire fraud, was sentenced to eight months in prison by U.S. District Court Judge Richard J. Arcara. The defendant was also ordered to pay restitution in the amount of $20,000.
Assistant U.S. Attorney Trini E. Ross, who handled the case, stated that the defendant used a fraudulent passport from Denmark in the name of Christian Bendtner, to open up several bank accounts in the Buffalo area. Stratenco then placed false advertisements on eBay for “Can-Am Spyder” and “Honda Goldwing” motorcycles. The defendant directed interested buyers to wire money into one of the bank accounts opened under the name Christian Bendtner. Stratenco told victims the money would go into an eBay holding account until the merchandize was shipped. Instead, the money went directly into one of the fraudulent accounts. During the course of the scheme, the defendant transferred $17,500 of the money wired into the fraudulent accounts to an individual located in the Ukraine. As a result of Stratenco’s actions, individuals wired $49,300 to the fraudulent bank accounts.
The sentencing is the result of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations under the direction of James C. Spero, Special Agent in Charge.Michigan Man Sentenced to 57 Months’ Imprisonment for Valentine’s Day Robbery of Highland BankRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that Alexander P. Gerth, 18, of Troy, Michigan, was sentenced on August 8, 2014, in federal district court in East St. Louis for Bank Robbery, in violation of 18 U.S.C. Section 2113(a).
Chief Judge David R. Herndon sentenced Gerth to 57 months’ imprisonment, 3 years’ supervised release, and a $100 special assessment, following his plea of guilty, on April 7, 2014. The charges relate to the robbery of the Bradford National Bank in Highland, Illinois, on Valentine’s Day earlier this year. His co-defendant, Ramsey Z. Fakhouri, was sentenced July 11, 2014, to 78 months’ imprisonment.
Fakhouri and Gerth lived in Michigan, but Fakhouri had a girlfriend who worked at the bank in Highland. While talking with the girlfriend long-distance one day, Fakhouri put the call on speaker phone so that Gerth could hear the girlfriend unwittingly give details about bank’s procedures in stocking its ATM, which was located outside and away from the bank building.
Gerth and Fakhouri decided to rob the bank employee who filled the ATM. They drove all night from Michigan to Illinois, then waited for the bank to open. When an employee came out to fill the ATM, Gerth, masked and armed with what looked like a gun (it was actually an air gun), forced the employee to give him the cash from the ATM. Gerth returned to the car, and Fakhouri drove the car away from the bank.
The unsuspecting girlfriend soon texted Fakhouri about the bank robbery and about her own fears – she had watched helplessly from inside the bank while her fellow employee had been robbed. Fakhouri decided to return by bus to comfort his girlfriend. Gerth drove Fakhouri’s car back to Michigan.
On February 16, 2014, the girlfriend received an email on her cell phone that contained photos of the alleged bank robbers. Fakhouri tried to explain that although one of the images was of him, he had nothing to do with the bank robbery. He rode with his girlfriend to the Highland Police Department to try to convince the police that he had not been involved in the robbery.
The police did not believe his story; they arrested him. Eventually, however, Fakhouri admitted that he and Gerth had come from Michigan to rob the bank. Gerth was then arrested in Michigan; the air gun that he had used in the robbery was in his backpack.
Police were able to recover most of the money that Gerth and Fakhouri stole.
The case was investigated by members of the Federal Bureau of Investigation and the Highland Police Department. The case was prosecuted by Assistant U.S. Attorney Stephen B. Clark.
Mexican Native Charged with Illegal ReentryRead the Press Release
Ranferi Heredia-Cortez, a/k/a “Alexander Heredia-Cortez,” a/k/a “Ranferi Alexander Cortez,” a/k/a “Rafael Ramirez Zanbrano,” 31, of Norristown, PA, was charged today by Indictment with illegal re-entry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about July 9, 2014, Heredia-Cortez, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about August 18, 2003, and October 21, 2003.
If convicted the defendant faces a maximum possible sentence of twenty years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Matthew J.D. Hogan and Special Assistant United States Attorney Mark T. Sendek.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Medical Device Company Officials Admit Scheme to Defraud Hospitals of $800,000Read the Press Release
TRENTON, N.J. – A regional manager and a product specialist selling medical devices to hospitals for Integra LifeSciences Corp. of Plainsboro, New Jersey, today admitted their roles in a scheme to defraud hospitals of more than $800,000, U.S. Attorney Paul J. Fishman announced.
Daniel Metz, 34, of Fairfield, New Jersey, and Charles B. Carey Jr., 35, of Clark, New Jersey, each pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to separate informations charging them with conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
Integra is a provider of orthopedic products, including devices and implants for the spine, foot and ankle, hand and wrist, and shoulder and elbow. Metz worked there from July 2005 until his termination in April 2013, first as a product specialist (also referred to as a sales representative) and then as Northeast regional manager, supervising 16 product specialists and assistant sales representatives in Massachusetts, New Jersey, New York, and Pennsylvania. Carey was a product specialist, reporting to Metz, from January 2009 until he resigned in April 2011.
Product specialists at Integra were responsible for calling on surgeons to increase sales volume and were routinely present during surgeries. When present during surgeries, product specialists brought with them consignment trays with pre-packaged Integra products available to surgeons, as well as surgery-specific products. Integra billed the hospitals and surgery centers for the products used and product specialists (and their supervisors) were compensated based on salary, sales target-based commission and bonuses.
Metz admitted he used various fraudulent methods to overcharge hospitals and surgery centers. He would sometimes charge for a greater quantity or a more expensive product than was actually used, increasing his compensation and improving his employment evaluations.
Metz and Carey admitted that after Metz became regional manager, he taught at least some of the fraudulent methods to product specialists working for him, including Carey, who sometimes employed those methods.
Metz and Carey fraudulently caused medical facilities to pay more than $800,000 in inflated bills.
The count of conspiracy to commit wire fraud to which Metz and Carey pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Metz and Carey also agreed to forfeit $100,000 and $77,000, respectively, representing the amounts of money they personally made through the fraud scheme. The defrauded hospitals have been reimbursed by Integra for the fraudulent charges.
Sentencing is scheduled for Jan. 20, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s guilty pleas. He also thanked detectives of the Morris County Prosecutor’s Office, under the direction of Prosecutor Fredric M. Knapp, for their contributions to the investigation.
The government is represented by Jacob T. Elberg, Chief of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit, in Newark.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $540 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
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Defense counsel: Metz: Lawrence Lustberg Esq., Newark
Carey: Timothy Donohue Esq., West Orange, N.J.Metz, Daniel Information
Carey, Charles InformationMaryland Man Sentenced to 20-Year Prison Term for Sexual Abuse of RelativeAbuse Began When Girl Was 10 or 11 Years OldRead the Press Release
WASHINGTON – A 32-year-old man from Temple Hills, Md., has been sentenced to a 20-year prison term for sexually abusing a teenage relative in the District of Columbia, U.S. Attorney Ronald C. Machen Jr. announced today.
The defendant, who is not identified here to protect the privacy of the victim, pled guilty in April 2014, in the Superior Court of the District of Columbia, to two counts of first-degree child sexual abuse. The Honorable Lynn Leibovitz sentenced him on Aug. 11, 2014. Upon completion of his prison term, the defendant will be placed on supervised release for the rest of his life; he also must register as a sex offender for the rest of his life.
According to the government’s evidence, the defendant subjected the girl to chronic child sex abuse from 2010 to 2013, starting when she was only 10 or 11 years old. The guilty plea involves two attacks in 2012 and 2013, in the living room of her family’s residence in the District of Columbia. The girl, who often was left in the care of the defendant, became pregnant as a result of the abuse. DNA tests revealed that the defendant is the child’s biological father.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department’s Youth Division. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Tiffany Jones; Victim/Witness Advocates Tracy Owusu and Tracey Hawkins, and Assistant U.S. Attorney Kenya K. Davis, who prosecuted the matter.
14-179MUSTAFA FAMILY CRIME RING INDICTED FOR USING THOUSANDS OF STOLEN IDENTITIES TO STEAL CELLULAR TELEPHONES AND TABLET DEVICES WORTH MILLIONS OF DOLLARSMustafa Family Trafficked Stolen Mobile Devices Throughout United States and OverseasRead the Press Release
United States Attorney Andrew M. Luger today announced the indictment of 20 members of the
Mustafa Family (The Organization), a Twin Cities-based criminal organization, for trafficking stolen and fraudulently obtained mobile telephones and tablets. The Organization, led by
JAMAL TALAL MUSTAFA, a/k/a “Jimmy,” primarily obtained devices by robbery, burglary, identity theft, and contract-fraud schemes. JAMAL MUSTAFA¸ KANAN M T MUSTAFA, a/k/a “Kenny,” NASER MOHAMAD MUSTAFA, a/k/a “Nasty Nas,” EDWAN T MUSTAFA, a/k/a “Eddy,” NIZER M MUSTAFA, a/k/a “Shaggy,” a/k/a “Mike,” BILAL MUHAMMED MUSTAFA, a/k/a “Billy,” TALAL M MUSTAFA, a/k/a “Tommy,” MOISES NAVARRO CAZALES, AHMED RD SUNOQROT, a/k/a “Abu Shanab,” CEDRIC CHAPPELL, DEANTRE RICKEY-RENE SQUALLS, BLANYON TOE DAVIES, VICTOR TOMBEKAI DOE, YOLANDA COOMBS, CASWANA MILES, MARCUS PHILLIP COLEMAN, ROBERT RICHARD COLEMAN, DANIELLE YVONNE COLEMAN, MARQUIS TERELL MAGGIESFIELD, a/k/a “Kenny,” and TIARA LIGON, are each charged in U.S. District Court with Conspiracy to Engage in Interstate Transportation of Stolen Goods.“Identity theft rings are the modern face of organized crime,” said U.S. Attorney Luger. “Identity thieves often use fraudulent identities to obtain goods, which they can sell for cash. These defendants are charged with obtaining stolen cell phones through identity theft and fraud, and then selling them for exorbitant profits. It is only through close collaboration and cooperation between each of the law enforcement agencies involved in this case that we are able to stand here today having taken out one of the largest criminal enterprises in the Twin Cities.”
St. Paul Police Department Assistant Chief Bill Martinez said: “We want our communities to understand that this isn’t just about someone simply swiping the phones we hold in our hands. These are not petty crimes. Those thefts and robberies filtered into other crimes.”
United States Secret Service Special Agent in Charge Louis Stephens said: “Today is a very good day for the people of Minnesota. A significant organized crime network is no longer at work. Today’s success is the result of the close and collaborative working relationships between local, state and federal law enforcement agencies, and federal prosecutors. When we combine our resources, leverage our various areas of expertise, and work as one, we make big things happen and significant crime is stopped in its tracks.”
Minnesota Bureau of Criminal Apprehension Superintendent Wade Setter said: “Today’s indictments in this complicated case are truly the product of investigative partnerships. The Minnesota Financial
Crimes Task Force worked this case along with the U.S. Secret Service and the St. Paul Police
Department in a multi-jurisdictional approach necessary to investigate this type of crime.”University of Minnesota Assistant Vice President and Chief of Police Gregory S. Hestness said: “Last fall a wave of robberies targeted University of Minnesota students and their cell phones in campus area neighborhoods. Officers of the University of Minnesota Police Department worked literally thousands of hours in robbery suppression, and we saw results. However, without addressing the underlying criminal enterprise creating a market for these phones, we were not doing everything possible to protect our students. UMPD was honored to contribute to this critical major investigation. Today’s successes are remarkable, but also emblematic of the strong partnership of
Minnesota law enforcement at the local, state, and federal levels.”According to the indictment and documents filed in court, from at least 2006 through 2014, JAMAL
MUSTAFA directed the Organization to use stolen identity information to obtain cellular telephones and other mobile devices for the purpose of trafficking them throughout the United
States and internationally. JAMAL MUSTAFA, KANAN MUSTAFA, NASER MUSTAFA, EDWAN MUSTAFA, NIZER MUSTAFA, BILAL MUSTAFA, TALAL MUSTAFA, and MOISES NAVARRO-CAZALES, owned and operated 13 mobile device stores in the Twin Cities metropolitan area. The Organization used these storefronts to buy devices that they knew had been illegally obtained, including purchasing thousands of cellular phones from runners and other persons who got the phones through robberies, burglaries, shoplifting, and fraud and identity-theft schemes.With the assistance of AHMED SUNOQROT, the Organization moved inventory and money between their stores, which the Organization used as fronts to funnel the illicit proceeds of their criminal activity.
According to the indictment, the Organization paid runners who stole mobile devices or obtained them fraudulently by other means. CEDRIC CHAPPELL, DEANTRE-RICKEY-RENE SQUALLS, BLANYON TOE DAVIES, VICTOR TOMBEKAI DOE, YOLANDA COOMBS, CASWANA MILES, TIARA LIGON, MARQUIS TERELL MAGGIESFIELD, MARCUS PHILLIP COLEMAN, ROBERT RICHARD COLEMAN, and DANIELLE YVONNE COLEMAN, were each paid by the Mustafas to steal or fraudulently obtain mobile devices by contract or subscription fraud. They targeted stores like Best Buy, WalMart, Verizon outlets, T- Mobile stores, and online Apple stores.
As charged, various members of the Mustafa Family provided stolen or fraudulent identity information to the runners, including names, dates of birth, social security numbers, credit card numbers, passport information, and driver’s license numbers of victims. Some of the runners operated solely within Minnesota, while others travelled to Arizona, Idaho, North Dakota, Iowa, Wisconsin, Illinois, and Utah to obtain devices. The Organization arranged out-of-state travel for the runners and paid their expenses. One runner was arrested in Utah in 2013 with more than 80 counterfeit identification documents and genuine victim-information documents. This runner used those documents to open lines of credit at various retail outlets to make fraudulent device purchases.
The runners were instructed by the Mustafas to obtain phones by contract-fraud and subscription-fraud schemes. In such schemes, runners used real stolen identities to obtain cell phone contracts. At times, the runners obtained “family plans” or “business accounts.” In so doing, runners were sold phones at deeply discounted prices by the legitimate retailers. The full retail price of an iPhone 5s in the United States is approximately $648. Under a two-year contract, the same phone is sold for approximately $200. Runners then opened accounts entitling them to obtain as few as one discounted phone, and as many as 30. The runners then shipped or delivered the phones back to the Mustafas, via one of the thirteen Twin Cities storefronts, or shipped the phones to wholesalers in other states for sale overseas. A new iPhone 5s retails for between $1,000 and
$1,200 overseas.Other runners engaged in street-level violence or burglary to obtain phones. The Sunrise Group, a burglary ring that traveled throughout the Upper Midwest for the purpose of breaking into WalMart stores to steal cell phones, iPads, and other electronic devices, provided electronic devices to the Mustafa Family on several occasions. The Mustafa Family made requests of the Sunrise Group for large quantities of new phones, and would act as a fence for the stolen merchandise.
Assistant U.S. Attorney Karen Schommer, Chief of the Major Crimes Section; Assistant U.S. Attorney
Steven Schleicher, Chief of the Special Prosecution Section; and Assistant U.S. Attorney
John Marti are handling the prosecution of this case.U.S. Attorney Luger thanked the St. Paul Police Department, United States Secret Service, University of Minnesota Police Department, Minnesota Department of Public Safety and Bureau of
Criminal Apprehension, Minnesota Financial Crimes Task Force, United States Postal Inspection
Service, Internal Revenue Service Criminal Investigations, Homeland Security Investigations, Edina
Police Department, Minneapolis Police Department, Plymouth Police Department, Federal Bureau of
Investigation, and the United States Marshal’s Service for their assistance in the investigation.Defendant Information:
JAMAL TALAL MUSTAFA, a/k/a “Jimmy,” D.O.B. 6/17/1972
Apple Valley, MNCharges: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
KANAN M T MUSTAFA, a/k/a “Kenny,” D.O.B. 6/16/1977
Rosemount, MNCharges: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
NASER MOHAMAD MUSTAFA, a/k/a “Nasty Nas,” D.O.B. 1/6/1991
Rosemount, MNCharges: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
EDWAN T MUSTAFA, a/k/a “Eddy,” D.O.B. 11/14/1974
Apple Valley, MNCharges: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
NIZER M MUSTAFA, a/k/a “Shaggy,” a/k/a “Mike,” D.O.B. 8/27/1978
Savage, MNCharges: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
BILAL MUHAMMED MUSTAFA, a/k/a “Billy,” D.O.B. 6/25/1984
Minneapolis, MNCharges: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
TALAL M MUSTAFA, a/k/a “Tommy,” D.O.B. 4/19/1971
Burnsville, MNCharges: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
MOISES NAVARRO CAZALES, D.O.B. 11/15/1992
Bloomington, MNCharges: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
AHMED RD SUNOQROT, a/k/a “Abu Shanab,” D.O.B. 6/2/1955
St. Paul, MNCharges: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
CEDRIC CHAPPELL, D.O.B. 2/17/1971
Minneapolis, MNCharges: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
DEANTRE RICKEY-RENE SQUALLS, D.O.B. 9/6/1990
Brooklyn Center, MNCharges: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
BLANYON TOE DAVIES, D.O.B. 8/8/1993
UnknownCharges: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
VICTOR TOMBEKAI DOE, D.O.B. 2/1/1991
UnknownCharges: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
YOLANDA COOMBS, D.O.B. 2/23/1987
Oakdale, MNCharges: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
CASWANA MILES, D.O.B. 8/10/1988
UnknownCharges: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
MARCUS PHILLIP COLEMAN, D.O.B. 11/5/1991
St. Paul, MNCharges: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
ROBERT RICHARD COLEMAN, D.O.B. 5/3/1984
St. Paul, MNCharges: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
DANIELLE YVONNE COLEMAN, D.O.B. 12/1/1985
St. Paul, MNCharges: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
MARQUIS TERELL MAGGIESFIELD, a/k/a “Kenny,” D.O.B. 5/9/1986
UnknownCharges: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
TIARA LIGON, D.O.B. Unknown
St. Paul, MNCharges: • Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Lenexa Man Pleads Guilty to Child ExploitationRead the Press Release
Human Trafficking Rescue Project
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lenexa, Kan., man pleaded guilty in federal court today to attempting to entice a 12-year-old child to engage in prostitution and criminal sexual activity after being caught in an undercover sting operation.
John J. McCarthy, 24, of Lenexa, pleaded guilty before U.S. District Judge Gary A. Fenner to one count of attempting to entice a minor over the Internet for prostitution and criminal sexual activity.
By pleading guilty today, McCarthy admitted that he communicated with a woman he believed to be the mother of two minor females, ages 12 and 16, and expressed interest in having sex with her daughters. While he was in the state of Kansas, McCarthy sent messages through a social networking site and subsequent e-mail and text messages to make arrangements with this woman (who was, in fact, an undercover detective with the Kansas City, Mo., Police Department) to meet and discuss the opportunity to have sex with her children.
On July 29, 2013, McCarthy traveled to Missouri and met with the undercover detective. He told her that he wanted the 12-year-old girl first and described all of the sex acts he desired to perform on and with her. McCarthy agreed to pay $50.
The next day, McCarthy traveled to Missouri again, to a location where he believed the woman and her daughters lived. McCarthy gave the undercover detective $60, and the undercover detective restated the sex acts that McCarthy had previously said he desired to perform with the 12-year-old girl. When McCarthy attempted to enter the bedroom where he believed the 12-year-old girl was located, he was placed under arrest.
Under federal statutes, McCarthy is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by the Kansas City, Mo., Police Department and the FBI in conjunction with the Human Trafficking Rescue Project.Leeper, Pa., Man Admits Taking Minor Across State Lines for SexRead the Press Release
PITTSBURGH - A resident of Clarion County, Pennsylvania, pleaded guilty in federal court to a charge of interstate transportation of a minor for purpose of engaging in unlawful sexual activity, United States Attorney David J. Hickton announced today.
Joshua D. Baker, 33, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that in 2012, Baker was 31 years old, and resided in Clarion County. He became acquainted with 12-year old girl when they met at a family function in 2012. The juvenile girl’s mother was engaged to Baker's cousin, who lived with the juvenile girl and her mother.
On March 27, 2013, Baker and his wife had received a check for $5,000 from their auto insurance carrier to cover the damage that Baker's vehicle sustained in a recent accident. They cashed the check and went to a car dealership for the purpose of purchasing a new vehicle. Baker left his wife at the dealership and went home. After arriving at his home, Baker gathered some personal belongings and drove away in the family car. He took the $5,000 cash from the insurance check with him. His farewell note to his wife stated that he wanted a divorce and was going on a long trip.
On the night of March 27, 2013, the juvenile girl was at her residence, waiting for Baker to pick her up. At this time, Baker was 31 and the juvenile was 13. She waited until her mother went to bed at around 1 a.m., on March 28, 2013. The juvenile girl’s little brother thereafter saw her leave the residence at approximately 2 a.m., carrying a backpack. She said she was going for a walk with a friend. On March 28, 2013, the juvenile’s mother notified police that her daughter was missing.
On or about Wednesday, April 3, 2013, Clarion police interviewed one of Baker's friends. The friend advised that Baker had bragged to him about his sexual relationship with the juvenile female.
On Thursday, April 4, 2013, Baker and the juvenile were seen in Rapid City, South Dakota. They went into a store to purchase eyeglasses for the girl. They scheduled an eye exam appointment for her for the next day. Baker provided his real name to the sales clerk, and the juvenile falsely identified herself. They told the clerk that they were brother and sister, but because they were holding hands, the clerk became suspicious. The clerk got Baker's license plate number when they were driving away. She also did a web search for Joshua Baker and saw the missing persons information pertaining to Baker and the juvenile girl, and then called the police. Baker and the juvenile did not return to the store for the eye appointment.
After receiving the report from the sales clerk, an FBI Agent working out of the Pittsburgh field office sent a lead to the South Dakota FBI, asking them to look for Baker’s vehicle in Martin, South Dakota, where Baker had previously visited when he was approximately 18 years old. On Saturday, April 6, 2013, local police and FBI Agents located Baker and the juvenile girl in that area, at which time Baker was arrested and the girl was placed in the custody of a local CYS agency.
While she was in custody, the juvenile told FBI agents that, since meeting Baker in 2013, they had engaged in sexual intercourse on numerous occasions, and had done so on the trip after leaving Pennsylvania.
Judge Bissoon scheduled sentencing for Dec. 2, 2014, at 10 a.m. The law provides for a total sentence of life imprisonment, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shaun E. Sweeney is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Clarion Police Department conducted the investigation that led to the prosecution of Baker.
KC Man Pleads Guilty to Illegal Firearms Following Fatal Collision, Faces 10 Years in PrisonRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to illegally possessing firearms, following a high-speed car chase that ended with a collision that killed an employee of the Kansas City Police Crime Laboratory.
Larneal D. Davis, 29, of Kansas City, pleaded guilty before U.S. District Judge Howard F. Sachs to being a felon in possession of firearms. Under the terms of today’s plea agreement, the government and the defendant agree to request a sentence of 10 years in federal prison without parole, which is the statutory maximum. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
By pleading guilty today, Davis admitted that he possessed two firearms in the vehicle he was driving on July 6, 2013. The two firearms – a Taurus .40-caliber semi-automatic pistol and a Ruger, .380-caliber semi-automatic pistol – were discovered in Davis’s wrecked vehicle following its collision with another vehicle at 65th Street and Troost in Kansas City.
Michael Chou, a crime scene technician at the Kansas City Police Crime Laboratory, was killed when his vehicle was broadsided by Davis’s vehicle while Davis was fleeing from Kansas City police officers. Davis was arrested a short distance from the accident scene after a brief pursuit on foot.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Davis has prior felony convictions for possession of crack cocaine with intent to distribute, carrying a firearm in connection with a drug offense and distribution of a controlled substance.
This case is being prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the Kansas City, Mo., Police Department.HUD Section 8 Housing Manager Sentenced in Manhattan Federal Court to One Year and One Day in Prison in Connection with Bribery and False Statements ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that NOVELETTE “PAT” CAMPBELL, a former manager of the federally subsidized Tricham Houses in Manhattan, was sentenced today in Manhattan federal court to one year and one day in prison for accepting bribes in connection with federal program funds. CAMPBELL was convicted in April 2014 of six counts – one count of accepting bribes in connection with federal program funds, one count of conspiracy to accept bribes in connection with federal program funds, and four counts of making false statements to the U.S. Department of Housing and Urban Development (“HUD”). She was convicted after a one-week jury trial before U.S. District Judge George B. Daniels, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “For concocting and carrying out a scheme to trade spots on the waiting list for the Tricham Houses apartments in exchange for bribes of up to $9,000, Novelette ‘Pat’ Campbell has earned herself a spot in the housing of a federal prison. I would like to thank the investigators at the HUD-OIG and ICE-HSI for their hard work on this case.”
According to the Indictment, as well as evidence presented at CAMPBELL’s trial:
From April 2000 through October 2011, CAMPBELL accepted bribes and engaged in a conspiracy to accept bribes from individuals who were not on a waiting list for subsidized housing at the Tricham Houses. Rather than maintain the integrity of the waiting list and process applications on a first-come, first-serve basis as required by HUD, CAMPBELL sold spots on the waiting list for bribes. The people who paid bribes took apartments away from people who were on the waiting list for years. CAMPBELL accepted bribes ranging from $2,000 through $9,000, depending on the size of the apartment.
In addition, CAMPBELL falsified HUD certifications by falsely representing that all administrative procedures had been followed, when they had not, and, on two occasions, forged the signature of a tenant. CAMPBELL also altered original tenant applications for Section 8 housing to falsely add bribe payers as relatives of original applicants.
In addition to her prison term, CAMPBELL, 55, of the Bronx, New York, was sentenced to three years of supervised release, and was ordered to pay $35,500 in forfeiture and a $600 special assessment fee.
Mr. Bharara praised the investigative work of HUD Office of the Inspector General and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. He noted that the investigation is continuing.
This case is being handled by the Office’s General Crimes Section. Assistant U.S. Attorneys Carolina A. Fornos and Rahul Mukhi are in charge of the prosecution.
Grand Jury Returns Indictment in Ron Wilson Ponzi CaseRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina -----United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned an Indictment alleging a conspiracy to obstruct justice and to hide assets in violation of Title 18, United States Code, Section 371. The following individuals were charged in the indictment: Ronnie Gene Wilson, age 67, of the Coleman Federal Corrections Institution in Sumterville, Florida; Cassandra Kendall Wilson, age 66, of Woodruff, South Carolina; and
Timothy L. Wilson, age 60, of Martin, Tennessee.
In addition, Mr. Nettles said that Ronnie Gene Wilson was also charged with making false statements to federal agents in violation of Title 18, United States Code, Section 1001.
The maximum penalty the Defendants could face for the conspiracy charge is 5 years imprisonment and a maximum fine of $250,000. The maximum penalty Ronnie Gene Wilson could face for false statement charge is 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the United States Secret Service and is assigned to Assistant United States Attorney Bill Watkins of the Greenville office for prosecution.
The United States Attorney stated that all charges in this Indictment are merely accusations, and that all defendants are presumed innocent until and unless proven guilty.
Mr. Nettles further stated that since the original charges brought against Wilson and Atlantic Bullion & Coin in 2012, three individuals have been convicted of charges related to the Ponzi and the hiding of assets.
On February 26, 2014, Wallace Lindsey Howell, age 62, of Mauldin, South Carolina, was sentenced for conspiracy to commit wire fraud, a violation of Title 18, United States Code, Section 1349. United States District Judge J. Michelle Childs of Greenville imposed a 12 month sentence and ordered Howell to pay $3.5 million in restitution.
On March 31, 2014, Benton T. Hall, age 22, of Mesa, Arizona, was sentenced for conspiracy to obstruct justice, a violation of Title 18, United States Code, Section 371. United States District Judge J. Michelle Childs of Greenville imposed a 24 month sentence and ordered Hall to pay $172,000 in restitution.
On April 28, 2014, Gordon L. Hall, age 61, of Mesa, Arizona, was sentenced for conspiracy to obstruct justice and wire fraud, violations of Tile 18 United States Code, Sections 371 and 1349. United States District Judge J. Michelle Childs of Greenville imposed a 180 month sentence and ordered Hall to pay $172,000 in restitution.
By way of background, Benton T. Hall and Gordon L. Hall were co-conspirators with Wallace Lindsey Howell. Howell recommended Wilson’s investment program to numerous people and received “commissions” from Wilson for investors he brought in. The indictment charging Howell focused on two clients introduced to Wilson’s investment scheme by Howell.
In April 2006, Atlantic Bullion & Coin statements showed these two clients made a profit because of silver trades that Wilson allegedly had made. (Of course, Wilson never made any real trades for any of his clients and was, in fact, operating a Ponzi scheme.) Howell told Wilson that since the two clients belonged to Howell, Wilson should put the profits earned in a separate account in Howell’s name. Thus, Howell was able to steal money belonging to his clients.
Once Howell learned that Secret Service was investigating the Ponzi scheme, he sought assistance from Benton T. Hall and Gordon L. Hall in hiding assets that had been acquired with Ponzi money. Howell was afraid that the federal receiver working to marshal assets related to the Wilson Ponzi fraud would “claw back” these assets so they could be distributed to the victims of the Ponzi scheme.
Howell transferred to the Halls approximately $1.5 million in property, gold and silver coins, equipment, and cash. The Halls then worked to hide this money from the federal receiver and law enforcement.Former United States Navy Military Sealift Command Contractor Pleads Guilty to Bribery and ConspiracyRead the Press Release
Scott B. Miserendino, Sr., 55, a former contractor for the United States Navy Military Sealift Command, pleaded guilty today to accepting bribes and conspiring to commit bribery.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office, Special Agent in Charge Susan Triesch of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, and Special Agent in Charge Royce E. Curtin of the FBI Norfolk Field Office made the announcement today after Miserendino entered his guilty plea before U.S. Magistrate Judge Douglas E. Miller of the Eastern District of Virginia.
According to a statement of facts filed with the plea agreement, Miserendino was a government contractor at the Military Sealift Command, which is the leading provider of transportation for the U.S. Navy. In that position, Miserendino worked closely with Kenny E. Toy, the former Afloat Programs Manager for the N6 Command, Control, Communication, and Computer Systems Directorate. In approximately November 2004, Miserendino and Toy initiated an extensive bribery scheme that spanned five years, involved multiple coconspirators, including two companies, and resulted in Miserendino and Toy receiving more than $265,000 in cash bribes, among other things of value, in exchange for official assistance.
At his plea hearing, Miserendino admitted that he solicited and accepted regular cash bribes, as well as other things of value, from two Chesapeake, Virginia contracting companies, referred to as Company A and Company B in court documents, in exchange for providing favorable treatment to those companies in connection with U.S. government contract work. More specifically, Miserendino admitted that he accepted $3,000 in cash bribes per month from various employees at Company A, including co-conspirators Dwayne A. Hardman, Roderic J. Smith, Michael P. McPhail, and Adam C. White. Miserendino also admitted that he, along with Toy, accepted a cash bribe payment of $50,000 in May 2009, from Company B’s founders, Hardman and Timothy S. Miller.
In addition to the more than $265,000 in cash bribes, Miserendino also admitted that he and Toy received other things of value, including flat screen televisions, laptop computers, a vacation rental in Nags Head, North Carolina, a football helmet signed by Troy Aikman, and softball bats.
According to plea documents, in exchange for the bribes, Miserendino and Toy performed various official acts to assist Company A and Company B. Indeed, during the conspiracy, Company A received approximately $3 million in business from the Military Sealift Command and Company B received approximately $2.5 million in business.
As part of his guilty plea, Miserendino also admitted to engaging in a scheme to conceal his criminal activity, which involved Miserendino arranging for more than $85,000 to be paid to one of his co-conspirators, Hardman, in an attempt to prevent Hardman from reporting the bribery scheme to law enforcement authorities.
Miserendino is scheduled to be sentenced on November 7, 2014.
Earlier this year, five other individuals pleaded guilty in connection with the bribery scheme. On Feb. 12, 2014, Toy pleaded guilty to bribery, and he was sentenced on July 29, 2014, to 96 months in prison and ordered to forfeit $100,000. On Feb. 18, 2014, Hardman, the co-founder of Company A and Company B, pleaded guilty to bribing Toy and Miserendino, and he was sentenced on July 9, 2014, to 96 months in prison and ordered to forfeit $144,000. On Feb. 19, 2014, Michael P. McPhail pleaded guilty to conspiracy to commit bribery, and he was sentenced on Aug. 5, 2014, to 36 months in prison and ordered to forfeit $57,000. On March 5, 2014, Smith, the co-founder and former president of Company A, pleaded guilty to conspiracy to commit bribery, and he was sentenced on June 23, 2014, to 48 months in prison and ordered to forfeit $175,000. On April 4, 2014, White, a former vice president of Company A, pleaded guilty to conspiracy to commit bribery, and he was sentenced on July 11, 2014, to 24 months in prison and ordered to forfeit $57,000.
The remaining defendant, Timothy S. Miller, a businessman who sought contracting business from the Military Sealift Command, is charged with one count of conspiracy to commit bribery and two counts of bribery. Miller’s t rial is scheduled for Sept. 30, 2014, before Chief Judge Smith.
The case was investigated by the FBI, NCIS, and DCIS. The case was prosecuted by Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Stephen W. Haynie of the Eastern District of Virginia.
Former United States Navy Military Sealift Command Contractor Pleads Guilty to Bribery and ConspiracyRead the Press Release
NORFOLK, Va. – Scott B. Miserendino, Sr., 55, a former contractor for the United States Navy Military Sealift Command, pleaded guilty today to accepting bribes and conspiring to commit bribery.
U.S. Attorney Dana J. Boente of the Eastern District of Virginia; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office; Special Agent in Charge Susan Triesch of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office; and Special Agent in Charge Royce E. Curtin of the FBI Norfolk Field Office made the announcement today after Miserendino’s guilty plea was accepted by United States Magistrate Judge Douglas E. Miller of the Eastern District of Virginia.
According to a statement of facts filed with the plea agreement, Miserendino was a government contractor at the Military Sealift Command, which is the leading provider of transportation for the U.S. Navy. In that position, Miserendino worked closely with Kenny E. Toy, the former Afloat Programs Manager for the N6 Command, Control, Communication, and Computer Systems Directorate. In approximately November 2004, Miserendino and Toy initiated an extensive bribery conspiracy that spanned five years, involved multiple coconspirators including two companies, and resulted in the payment of more than $265,000 in cash bribes, among other things of value to Miserendino and Toy in exchange for official assistance.
At his plea hearing, Miserendino admitted that he solicited and accepted regular cash bribes, as well as other things of value, from two Chesapeake, Virginia contracting companies, referred to as Company A and Company B in court documents, in exchange for providing favorable treatment to those companies in connection with U.S. contract work. More specifically, Miserendino admitted that he accepted $3,000 in cash bribes per month from various employees at Company A, including co-conspirators Dwayne A. Hardman, Roderic J. Smith, Michael P. McPhail, and Adam C. White. Miserendino also admitted that he, along with Toy, accepted a cash bribe payment of $50,000 in May 2009 that was paid to him by Company B’s founders, Hardman and Timothy S. Miller.
In addition to more than $265,000 in cash bribes, Miserendino also admitted that he and Toy received other things of value, including flat screen televisions, laptop computers, a vacation rental in Nags Head, North Carolina, a football helmet signed by Troy Aikman, and softball bats.
According to plea documents, in exchange for the bribes, Miserendino and Toy performed various official acts to assist Company A and Company B. Indeed, during the conspiracy, Company A received approximately $3 million in business from the Military Sealift Command and Company B received approximately $2.5 million in business.
As part of his guilty plea, Miserendino also admitted to engaging in a scheme to conceal his criminal activity, which involved Miserendino arranging for more than $85,000 to be paid to one of his co-conspirators, Hardman, in an attempt to prevent Hardman from reporting the bribery scheme to law enforcement authorities.
Miserendino is scheduled to be sentenced on November 7, 2014.
Earlier this year, five other individuals pleaded guilty in connection with the bribery scheme. On Feb. 12, 2014, Toy pleaded guilty to bribery, and he was sentenced on July 29, 2014, to 96 months in prison and ordered to forfeit $100,000. On Feb. 18, 2014, Hardman, the co-founder of Company A and Company B, pleaded guilty to bribing Toy and Miserendino, and he was sentenced on July 9, 2014, to 96 months in prison and ordered to forfeit $144,000. On Feb. 19, 2014, Michael P. McPhail pleaded guilty to conspiracy to commit bribery, and he was sentenced on Aug. 5, 2014, to 36 months in prison and ordered to forfeit $57,000. On March 5, 2014, Smith, the co-founder and former president of Company A, pleaded guilty to conspiracy to commit bribery, and he was sentenced on June 23, 2014, to 48 months in prison and ordered to forfeit $175,000. On April 4, 2014, White, a former vice president of Company A, pleaded guilty to conspiracy to commit bribery, and he was sentenced on July 11, 2014, to 24 months in prison and ordered to forfeit $57,000.
The remaining defendant, Miller, is charged with one count of conspiracy to commit bribery and two counts of bribery. Miller’s trial is set for Sept. 30, 2014, before Chief Judge Rebecca Beach Smith.
The case was investigated by the FBI, NCIS, and DCIS. The case was prosecuted by Assistant U.S. Attorney Stephen W. Haynie of the Eastern District of Virginia and Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Former Los Angeles Sheriff's Deputy Sentenced for Mortgage FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former deputy of the Los Angeles County, Calif., Sheriff’s Department has been sentenced in federal court for his role in an $11 million mortgage fraud scheme.
James Arthur Nash, Jr., 44, of Corona, Calif., was sentenced by U.S. District Judge Greg Kays to three years and six months in federal prison without parole. The court also ordered Nash to pay $446,641 in restitution.
Nash was convicted at trial on Dec. 6, 2013, of conspiracy to commit wire fraud and four counts of wire fraud related to fax transmissions and emails that were sent across state lines during the mortgage application process.
Co-defendant Arman Nshanian, 38, also a former sheriff’s deputy from Corona, Calif., was sentenced on July 8, 2014, to three years and six months in federal prison without parole and ordered to pay $785,926 in restitution. Nshanian was also convicted at trial of his role in the criminal conspiracy, as well as two counts of wire fraud.
Nash and Nshanian are among nine defendants who participated in a mortgage fraud scheme from early 2005 through Aug. 4, 2006. Mortgage lenders made loans of approximately $11,092,886 on 16 residential properties in Lee’s Summit, Liberty, Blue Springs, Parkville, Independence and Oak Grove, Mo. From that total, unbeknownst to the lenders, buyers received approximately $2,006,845 in secret illegal kickbacks from the loan proceeds. The scheme resulted in a financial loss to mortgage lenders of nearly $5 million.
Nash fraudulently purchased two residential properties on South Brittany in Blue Springs, Mo., for $540,647 (inflated by $140,747) and for $520,047 (inflated by $160,147). He received a $100,000 kickback from each property. Two months later, he unsuccessfully attempted to sell the properties to another person, using a similar fraud scheme. Nash’s loans for the properties went into default shortly after the purchases and the loans were foreclosed.
Nash attempted unsuccessfully to purchase a third property for $649,930. He also obtained a fraudulent $53,300 home improvement loan for a swimming pool at his California home.
Seven co-defendants have pleaded guilty and been sentenced. Leann Raejeana Turner, 44, of Blue Springs, was a real estate agent working for a series of real estate companies during the conspiracy. Carole L. Colson, 71, formerly doing business as Carole Colson Real Estate in Blue Springs, now of Lake Worth, Fla., was a real estate agent. Bruce Q. Williams, 44, of Kansas City, Kan., and Anthony E. Hicks, 42, of Little Rock, Ark., were loan officers at mortgage brokerage companies. Other co-defendants were “home buyers” who conspired to defraud mortgage lenders.
The scheme involved buying and selling homes at inflated prices, obtaining mortgage loans at the inflated prices, then kicking back $100,000 of the excess loan proceeds to each of the home buyers without the lenders’ knowledge. The scheme financially benefitted all of the conspirators. Turner (the real estate agent for 15 of the 16 transactions) received commissions and sometimes hidden payments and assets; Colson (another real estate agent), Williams and Hicks (the loan officers) received commissions from the transactions. The home buyers received illegal secret kickbacks.
Turner and Colson listed and arranged for the sale of the homes at inflated prices and solicited buyers. Misrepresentations and omissions of material facts were made to mortgage lenders in order to obtain the loans. In order to obtain the loan proceeds without the lenders’ knowledge, the buyers created fictitious businesses that issued false invoices that claimed the businesses had provided work and services for which they were entitled to receive loan proceeds.
This case was prosecuted by Assistant U.S. Attorney Linda Parker Marshall. It was investigated by the FBI and IRS-Criminal Investigation.Former Head of Cleveland Anti-Poverty Agency Charged with Bribery, ConspiracyRead the Press Release
The former head of a Cleveland-area anti-poverty agency was charged with accepting more than $23,000 in cash, home renovations and other things of value in exchange for steering work to specific contractors, law enforcement officials said.
Jacqueline K. Middleton, 69, of Shaker Heights, was charged in a criminal information with two counts of honest services fraud, one count of bribery in federally funded programs and one count of Hobbs Act Conspiracy.
“We will continue to prosecute cases where the public’s trust is violated with bribes and kickbacks,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
“The FBI has the responsibility of protecting the public by aggressively pursuing and bringing to justice those who place the community at risk,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. “Instead of serving the public, she served herself and violated the trust of those she was supposed to serve.”
“As the President and CEO of the CEOGC, Ms. Middleton had the obligation and responsibility to use taxpayer funds to assist low income families of Northern Ohio. Unfortunately she chose to use her position to enrich herself”, said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The OIG and its law enforcement partners are committed to identifying, investigating and working with prosecutorial authorities to hold individuals accountable who choose breech the public’s trust and deprive needy citizens of vital taxpayer dollars.”
Middleton served as president and chief executive officer of the Council of Economic Opportunities of Greater Cleveland. The CEOGC was organized with the purpose of serving low-income people of Cuyahoga County and Greater Cleveland. The CEOGC administered several federal, state and local programs designed to address the needs of low-income individuals, including Head Start, the Community Services Block Grant program and the Home Energy Assistance program.
From 2008 through around August 7, 2012, Middleton used her official position to enrich herself by soliciting and accepting gifts, payments and other things of value from contractors who did business with CEOGC. These gifts and payments were made in exchange for favorable action from Middleton for the payors and their companies, according to the information.
Middleton solicited and accepted gifts, payments and other things of value totaling more than $12,017 from a person identified as Contractor No. 1 and totaling approximately $11,200 from a person identified as Contractor No. 2. The things of value included kickbacks from CEOGC payments, home renovation work and payments to vendors for related supplies on her behalf, according to the information.
Middleton provided official favorable action Company No. 1 and Contractor No. 2 as requested and as opportunities arose. That included authorizing CEOGC contracts which retained Contractor No. 2 for consulting services and which retained Company No. 1 for work including parking lot renovations, classroom remodeling and flooring remodeling at various sites and offices administered by CEOGC, according to the information.
The case is being prosecuted by Assistant U.S. Attorney Justin J. Roberts, following an investigation by the Federal Bureau of Investigation and the Department of Health and Human Services – Office of Inspector General.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Directors of Alameda Heights Community Outreach Center Plead Guilty Following Investigation into Theft of Federal Grant FundsRead the Press Release
DALLAS — The former directors of a community outreach center in Dallas, whose trial was to begin yesterday, pleaded guilty this morning to federal felony charges stemming from a joint investigation by the Department of Justice - Office of the Inspector General (DOJ-OIG) and the Department of Labor - Office of the Inspector General (DOL-OIG) into theft of federal grant funds. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Elazada Mays, 69, of Oak Leaf, Texas, pleaded guilty to one count of federal program theft. She faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Artis Lee Dean, 77, of Red Oak, Texas, pleaded guilty to one count of misprision of a felony. He faces a maximum statutory sentence of three years in federal prison and a $250,000 fine. In addition, restitution may also be ordered. Both defendants are on bond; a sentencing date was not set.
Dean was the Executive Director of the Alameda Heights Community Outreach Center (AHCOC), located on Lyola Street in Dallas. Mays was the Program Director.
In 2009, DOJ’s Office of Juvenile Justice and Delinquency Prevention (OJJDP) released funding for a three-year, $8.8 million grant for one-on-one mentoring services for 16 to 18 year-old at-risk youth. YouthBuild USA administered the grants. As the grantee, YouthBuild USA qualified and selected community-based organizations to perform one-on-one mentoring services for mentees within local communities. AHCOC was selected, and in June 2010, Dean signed a contract for a $45,000 grant, agreeing to match and mentor 25 mentees, stipulating that at least 15 of the mentees would complete the program within a 15-month cycle.
For various reasons, however, including the unwillingness of mentees to participate, some of the mentoring relationships ended shortly after the program began. In November 2010, AHCOC officials realized that mentee participation had fallen below the required number and that the remaining mentor/mentee meetings were not being documented and tracked in accordance with the grant’s requirements.
To receive reimbursements, AHCOC was required to generate and submit payroll records to YouthBuild USA. Even though AHCOC employees and staff no longer worked on the mentoring program, fraudulent time sheets were created, transmitted and certified by Dean or Mays that certified work was being done in the program throughout the entire 15-month period.
In August 2011, Dean submitted an application for another 15-month cycle funding to YouthBuild USA, knowing that AHCOC did not comply with the requirements of the grant’s first cycle. YouthBuild USA relied on Dean’s false statements in awarding AHCOC with a second grant for $75,000, with AHCOC committing to recruit and match 40 mentees. This second cycle of grant funding ran from December 1, 2011, to March 28, 2013, but by August 2012, AHCOC had expended all of its funds — a full six months before the end of the term.
Dean and Mays admitted that the invoices and timesheets submitted by AHCOC to YouthBuild USA were false because they did not accurately reflect the hours worked on the mentorship program by officials, staff and employees. Mays also admitted that during both cycles, AHCOC falsified records to indicate that the required number of students participated in and completed the mentorship program, when in fact, the required number of students neither participated in nor completed either of the cycles.
Assistant U.S. Attorney Aaron Wiley and Special Assistant U.S. Attorney Vivian Lee are prosecuting.
Former Director of Yosemite National Park Child Care Center Charged with EmbezzlementRead the Press Release
FRESNO, Calif. — Charity Brocchini, 40, of Sonora, has been charged with embezzling more than $42,000 from the Yosemite National Park Child Care Center, United States Attorney Benjamin B. Wagner announced. On Thursday, August 7, 2014, a federal grand jury in Fresno returned an indictment charging her with two counts of wire fraud and one count of embezzlement concerning program receiving federal funds.
According to the indictment, between 2005 and 2009, Brocchini was the director of the Yosemite National Park Child Care Center (YNPCCC) and the Yosemite Child Care Center, a nonprofit organization operating child care facilities in Yosemite Valley and El Portal. The indictment alleges that Brocchini embezzled $42,608 by paying herself extra paychecks, and using the YNPCCC’s funds to write checks to herself, pay her personal car and insurance payments, pay her outstanding debts and credit cards, and make personal purchases at retail stores.
This case is the product of an investigation by the National Park Service Investigative Services Branch and the United Sates Department of Health and Human Services Office of Inspector General. Assistant United States Attorney Mark J. McKeon is prosecuting the case.
Ivan Negroni, Special Agent in Charge for the U.S. Department of Health and Human Services San Francisco region state: “We will continue to work with the U.S. Attorney to root out all forms of waste, fraud and abuse in federal grant programs.”
If convicted, Brocchini faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Bank Vice President Sentenced to 10 Yearsfor Attempted Online Enticement of A MinorRead the Press Release
WILMINGTON, Del. - Kirk A. Simmons, age 60, of Newark, Delaware, was sentenced earlier today to 10 years in federal prison for attempted coercion and enticement of a minor, in violation of Title 18, United States Code, Section 2422(b). Simmons also was sentenced to 10 years of supervised release following his prison sentence. He also will be required to register as a sex offender in any jurisdiction in which he lives, works, or attends school.
At the time of his criminal conduct, Simmons was employed as a Vice President, Market Information Manager II at Bank of America’s Newark, Delaware facility. Bank of America terminated Simmons’s employment following notification of his criminal conduct.
According to court documents and statements made in court, Simmons was arrested by the Delaware Child Predator Task Force on July 18, 2013, after he arrived at a Newark hotel to engage in sex acts with two persons he believed to be a 13-year-old girl and her biological father. Approximately one month earlier, in June 2013, Simmons responded to a “personals” advertisement on an adult social networking website. Simmons believed the advertisement had been posted by the father of a 13-year-old girl who the father would make available for sex with adult males. In fact, the “father” was actually an undercover Delaware State Police detective assigned to the Delaware Child Predator Task Force.
Over the course of the next month, Simmons and the undercover detective engaged in numerous online chat conversations in which Simmons indicated and graphically described that he wanted to engage in sexual activity with the purported “father” and his child. After a number of online conversations, Simmons and the “father” agreed to meet at a Newark hotel on July 18, 2013, where they both would engage in sex acts with the “13-year-old daughter.”
On the morning of July 18, 2013, Simmons left his office at Bank of America’s Deerfield facility and drove to a Newark hotel, where he was arrested by Child Predator Task Force members. In a recorded interview with a Delaware State Police detective, Simmons admitted that he intended to engage in sexual activity with the fictitious “father” and “13-year-old daughter” at the hotel. Simmons also admitted that he brought a digital camera with him to photograph the sexual activity.
Following the sentencing hearing, United States Attorney Charles M. Oberly, III stated: “I want to thank the Delaware Child Predator Task Force for its outstanding work in this case. This was a time-intensive, month-long, online undercover investigation that resulted in the capture of a seemingly upstanding and successful businessman who planned to rape a child with her father’s help. I would also like to thank the U.S. Department of Homeland Security for its continued and successful partnership with our State law enforcement partners on this critically important work.”“The Delaware Child Predator Task Force works hard every day to identify and arrest dangerous predators like this defendant who are searching our communities for young victims,” Delaware Attorney General Beau Biden said. “Our children are safer today because of that work and the shared commitment of our local, state, and federal law enforcement partners. Our work to protect kids never ends.”
“Today’s sentencing serves as a powerful reminder of the consequences of sexually exploiting children,” said John Kelleghan, special agent in charge of HSI Philadelphia. “HSI and our law enforcement partners are relentless in our pursuit of those who prey on children and engage in this perverse behavior.”
The case is being prosecuted by Assistant United States Attorney Edward J. McAndrew and investigated by the Delaware State Police and the United States Department of Homeland Security, Homeland Security Investigations.Former Bank Vice President Pleads Guilty to Receiving Kickback, Filing False Tax ReturnsRead the Press Release
Urbana, Ill. – Sentencing has been set for Dec. 11, for a former vice president of the State Bank of Herscher, David Rabideau, 43, of Clifton, Ill. Yesterday, Rabideau pled guilty to receiving a kickback for procuring a real estate loan and to two counts of filing false tax returns, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. Rabideau remains on bond following his appearance yesterday before U.S. Magistrate Judge David G. Bernthal.
According to court documents, Rabideau has served as a branch manager, vice president, and secretary of the board of directors for the State Bank of Herscher in Kankakee, Ill. Rabideau also served as one of the bank’s primary loan officers. During court hearings, Rabideau admitted that in 2007, he served as the loan officer for a $500,000 bank loan to a customer to finance the purchase of real estate. Rabideau did not disclose his financial interest in this loan; that he was going to receive a $75,000 kickback from the customer. Following the real estate closing, Rabideau gave the customer a cashier’s check for $75,000 from the State Bank of Herscher, and told him to deposit it into the customer’s bank account. Rabideau also instructed the customer to write a check in the amount of $75,000, as a “finder’s fee” to Rabideau in connection with the real estate transaction. The same day, the customer wrote Rabideau a $75,000 check drawn on the customer’s business account.Rabideau further admitted that for tax years 2006 and 2007, he failed to report various income he received. As a result of the understated gross income, Rabideau failed to pay at least $36,585 in income tax due to the government. Income Rabideau failed to report on his 2006 tax return included $16,572 he received as a “silent partner” in a real estate transaction via checks written to nominal payees and falsely claimed to be for the “sale of cow,” and a “finder’s fee” of $15,000 from a real estate agent, with the false statement "sale of tractor, antiques, etc.” in the check’s memo line. Rabideau admitted he failed to report additional income on his 2007 tax return, including $9,500 in capital gains from selling shares of Hershare Financial Corporation, the holding company for the State Bank of Herscher, in addition to the $75,000 kickback from a customer in connection with the real estate loan.
For receipt of money for procuring a loan, the statutory maximum penalty is up to 30 years in prison, and a fine of up to $1,000,000. The statutory maximum penalty for each count of filing a false income tax return is up to three years in prison, and a fine up to $100,000.
The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller. The charges are the result of an investigation by the IRS Criminal Investigation Division; the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General; and, the FBI.
# # # #Former Associate Dean of MIT Sloan School and His Harvard MBA Son Agree to Plead Guilty in Hedge Fund ScamRead the Press Release
BOSTON – Two Boston-area hedge fund managers were charged today with conspiracy to commit securities fraud, wire fraud and obstruction of justice.
Gabriel Bitran, 69, of Newton, a former professor and associate dean of the Massachusetts Institute of Technology ("MIT") Sloan School of Business, and his son Marco Bitran, 39, of Brookline, a Harvard Business School graduate and money manager, were charged with conspiracy to commit securities fraud, wire fraud and obstruction of justice in connection with their hedge fund businesses, GMB Capital Management and GMB Capital Partners. Both Gabriel and Marco Bitran have agreed to plead guilty to the charge.
It is alleged that from 2005 through 2011, Gabriel and Marco Bitran solicited and maintained investors in their hedge fund and investment advisory businesses with false claims that, for eight or more years, they had managed friends and family funds, delivering average annual returns between 16 and 23%, with no down years. The Bitrans falsely told investors that the money in GMB hedge funds would be invested according to a complex mathematical trading model developed by Gabriel Bitran and based upon his MIT research on optimal pricing theory. The Bitrans also routinely concealed from investors that certain of their hedge funds were simply “funds of funds,” that is, hedge funds in which values of investments are determined by the value of investments in other independently managed hedge funds, some of which were themselves broad-based funds of funds.
By means of their fraudulent representations, the Bitrans induced investors to entrust over $500 million to their businesses. From this money, the Bitrans paid themselves millions of dollars in management fees for managing the funds in which they had fraudulently induced people to invest.
In the fall of 2008, several of the Bitrans’ hedge funds had disastrous losses, resulting in investors losing 50–75% of their principal in many instances. Nonetheless, in the fall of 2008, as their funds were experiencing these losses, Gabriel and Marco Bitran redeemed approximately $12 million of their own money from these hedge funds, while deferring other investors’ requests for redemption. The Bitrans thereby extracted much of the value of their own investments while leaving other investors to suffer more losses as the funds’ values declined precipitously.
In January 2009, while investigating potential victims of the Madoff fraud, the United States Securities and Exchange Commission (“SEC”) examiners learned of the Bitrans’ performance claims and asked for supporting documentation. In response, the Bitrans allegedly made false statements to the SEC examiners and provided fabricated records purporting to support their claimed actual trading performance.
As they did so, Gabriel and Marco Bitran acknowledged to each other that they had made false statements to investors and owed them restitution. In July 2009, Gabriel Bitran emailed Marco Bitran and discussed the fact that they had misled investors:
“We have mislead [sic] a lot of people with a range of statements that were incorrect simply to increase our income. . . . A person with the experience and knowledge of the financial sector and a veteran professor of MIT should not have engaged in this type of behavior. . . . I certainly do not blame you for everything that happened; we both share responsibility. . . . With [several named individuals] and probably a few others . . . we told them a story that was not true! . . . In my view you are discarding their anger as bad losers. This is not the whole story. They are not idiots, they know that they were mislead [sic]. The penalty for this type of action is Full [sic] restitution, which obviously we cannot afford.”
Similarly, in a September 1, 2009 email, Marco Bitran acknowledged to his father that he had not acted honestly. He stated:
“We are certainly sharing equally in this dad. . . . Lots of our problems were caused by my good intentions but very poor actions when it came to true honesty.”
Still, from early 2009 through 2010, the Bitrans took steps to shield their assets by transferring them out of GMB businesses and into entities with less obvious affiliations to Gabriel and Marco Bitran. To effect some of these transfers, they used the identity of a family member without that person’s knowledge, obtaining falsely notarized signatures in that person’s name, to shield millions of dollars that they had preferentially transferred out of the GMB hedge funds.
In total, the Bitrans lost more than $140 million of GMB investors’ principal.
If the plea agreements are accepted by the Court, the Bitrans will be sentenced to no more than five years in jail but no less than two years, as well as a period of up to three years of supervised release and more than $10 million in forfeiture.
If you believe that you are a victim or have any information regarding this case you may contact us at [email protected].
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The United States Attorney’s Office received valuable assistance from the Securities & Exchange Commission in the course of investigating this case.
The case is being prosecuted by Sara Miron Bloom of Ortiz’s Economic Crimes Unit, Brian Pérez-Daple of the Major Crimes Unit and Mary Murrane, Chief of the Asset Forfeiture Unit.
The details contained in the Information are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Florida Man Admits Role in International Murder Conspiracy and Sale and Smuggling of Deadly ToxinsRead the Press Release
TRENTON, N.J. – A Florida man today admitted producing and selling potentially deadly toxins ricin and abrin for use as weapons and conspiring to kill a woman in the United Kingdom, U.S. Attorney Paul J. Fishman announced.
Jesse William Korff, 19, of LaBelle, Florida, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with five counts of developing, producing, transferring and possessing toxins, five counts of smuggling toxins and one count of conspiring to kill a person in a foreign country.
Korff was arrested in Florida on Jan. 18, 2014, following a joint investigation by U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI) and the FBI.
“Jesse Korff admitted producing and selling potentially deadly toxins to strangers over the Internet,” U.S. Attorney Fishman said. “Working in the shadows of a secretive computer network favored by cybercriminals, he peddled his poison on a virtual black market of illegal and dangerous goods. Today he admitted he was in the midst of aiding an overseas customer in an attempted murder. Thankfully, an undercover law enforcement officer posing as a buyer was able get Korff off the street before he could conclude the transaction.”
“HSI has worked tirelessly with our law enforcement partners to shutter underground websites such as BMR and arrest those responsible for reckless and dangerous illegal activity,” Andrew McLees, special agent in charge of HSI Newark, said. “Anyone involved in the sale of toxins designed for use in chemical terrorism must be stopped, and this guilty plea shows HSI’s commitment to stopping individuals who show callous disregard for public safety in the interest of making a buck.”
“The overriding focus of the FBI’s WMD Directorate, and the primary focus of the FBI's overall efforts is prevention,” Aaron T. Ford, Special Agent in Charge of FBI, Newark, said. “To keep the threat posed by Korff from becoming a reality, the FBI leveraged subject matter experts to include WMD coordinators, special agent bomb technicians, hazardous evidence response teams, surveillance and computer forensics personnel to disrupt the activities of Korff. The intensive three-day search, evidence collection, analysis and investigation uncovered an international nexus to Korff. Working through FBI legal attachés, information gleaned from the investigation was communicated to foreign law enforcement partners to disrupt international subjects.”
According to documents filed in this case and statements made in court:
In April 2013 HSI special agents began investigating illicit sales activity on an underground Internet marketplace known as “Black Market Reloaded” (BMR). The website provided a platform for vendors and buyers to conduct anonymous online transactions involving biological agents, toxins, firearms, ammunition, explosives, narcotics and counterfeit items.
From August 2013 through January 2014 Korff maintained a seller’s profile on BMR under the screen name “Snowman840.” He advertised the sale of deadly toxins and provided his prospective purchasers with information about quantities necessary to kill a person of a given weight, along with instructions on how to secretly administer the toxin to avoid suspicion. Korff sold ricin and abrin to international purchasers in India, Austria, Denmark and England. He smuggled the toxins from Florida to the international purchasers by concealing the toxins in packages sent through the U.S. Postal Service.
In December 2013 Korff provided a quantity of abrin to a purchaser in London who claimed she intended to kill her mother. After the purchaser’s receipt and administration of the initial dose, which she claimed was ineffective, Korff agreed to provide a second quantity of the toxin in order to assist the purchaser in the implementation of the murder plot.
Before Korff had an opportunity to smuggle the second dose of abrin to the London purchaser, a federal undercover agent contacted Korff through BMR and negotiated the sale of two liquid doses of abrin. Korff told the buyer about his delivery methods – concealing vials in a carved-out and re-melted candle – and discussed how much abrin was needed to kill a person of a particular weight and how best to administer the toxin. Korff also assured the buyer that a victim’s death would appear to be similar to a bad case of the flu.
Following Korff’s arrest, FBI agents searched Korff’s property over three days and recovered several computers, castor beans, rosary peas, capsules, vials, jars, syringes, filters, respirators and other items commonly utilized in the manufacture, production, sale, packaging, and shipping of toxins and chemical substances. Among the items recovered was a liquid dose of abrin that Korff had intended to ship to the London purchaser.
The toxin and murder conspiracy charges to which Korff pleaded guilty carry a maximum potential penalty of life in prison and a $250,000 fine. The smuggling charges carry a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Nov. 21, 2014.
U.S. Attorney Fishman credited special agents of HSI, under the direction of Special Agent in Charge McLees in Newark, New Jersey; special agents of the FBI in Newark, under the direction of Special Agent in Charge Ford; and FBI special agents under the direction of Special Agent in Charge Paul Wysopal, Tampa Division, with the investigation leading to today’s guilty plea. He also thanked HSI in Ft. Myers, Florida, under the direction of Special Agent in Charge Susan McCormick, for their work. The U.S. Attorney also thanked the FBI’s Joint Terrorism Task Force, including the U.S. Postal Inspection Service and the Glades County, Henry County and Lee County, Florida, sheriff’s offices for their assistance. Vital support was provided by the Justice Department’s National Security Division Counterterrorism Section and FBI WMD Directorate in Washington, the FBI Laboratory Division, the DHS National Bioforensic Analysis Center; the U.S. Attorney’s Office for the Middle District of Florida; and the London Metropolitan Police Service (MPS), SO15 Counter Terrorism Command, under the direction of Commander Duncan Ball.
The government is represented by Assistant U.S. Attorney Dennis C. Carletta of the U.S. Attorney’s Office National Security Unit in Newark.
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Defense counsel: David Holman Esq., Newark
Korff, Jesse Information
Florence Man Charged with Smuggling and Distributing Prescription DrugsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina -----United States Attorney Bill Nettles announced today that a federal grand jury returned a nine-count Indictment charging Florence resident Willard Lester “Les” Willard, age 51, with conspiracy, smuggling and violations of the Food, Drug and Cosmetic Act. The Indictment alleges that beginning in 2010, Willard ran a fulfillment center for foreign drug companies that illegally sold unapproved pharmaceutical drugs to US residents. He is also accused of selling unapproved prescription drugs to US customers through a website, www.click1market.com, that he maintained and controlled. The Indictment alleges that Willard shipped more than 10,000 packages containing the smuggled drugs.
The case was investigated by Special Agents with the Food and Drug Administration’s Office of Criminal Investigation, working with Homeland Security Investigations and Inspectors with the United States Postal Inspection Service. Assistant United States Attorney Eric Klumb is prosecuting the case.
The United States Attorney stated that the charges alleged in the Indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina -----United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictment(s) against the following: Spartanburg County Resident Indicted for Wire Fraud
MARGUERITE L. HOLT, age 61, of Moore, South Carolina, was charged with wire fraud, a violation of Title 18, United States Code, Section 1343. The maximum penalty HOLT could receive is a fine of $250,000.00 and/or twenty years imprisonment. This case was investigated by agents of the Federal Bureau of Investigation and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.
Foreign Nationals Charged with Illegal Re-entry
UDENCIO TECUN-CALI, RAMON ARRIAGA-HERNANDEZ, CARLOS DIAZ-HERNANDEZ, IVAN MARES-RUIZ, LEONEL REYNOSO-DIONICIO, NERY HUMBERTO DE LEON-LOPEZ, JOSE MANUEL FERMAN-AGUILAR, PERFECTO PEREZ-TOLEDO, ABDON GARCIA-GUILLEN, GILBERTO MICHOA-RAMIREZ, MAURO CORDOVA-BURGOS, JOSE VERULA MARTINEZ-SALDANA and MARTIN GONZALEZ-CASTRO are each charged with illegal re-entry to the United States, a violation of Title 8, United States Code, Section 1326. The maximum penalty each could receive, depending on his prior criminal history, is two to twenty years imprisonment. These cases were investigated by Department of Homeland Security, U.S. Immigration and Customs Enforcement (ICE), agents and are assigned to Assistant United States Attorney Max Cauthen of the Greenville office for prosecution. The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla. — The results of the August 2014 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. The return of an indictment is a method of informing the defendant of alleged violations which must be proven in a court of law beyond a reasonable doubt to overcome the defendant’s presumption of innocence.
Max Robert Ernst. Bank Fraud and Possession of Stolen Mail. Ernst, 28, of Tulsa, is charged with one count of defrauding the Stillwater National Bank and Trust Company by means of a forged check. The defendant is also charged with possessing stolen mail. If convicted, bank fraud carries a statutory maximum penalty of 30 years in prison and a fine of $1,000,000 and possession of stolen mail carries five years in prison and a fine of $250,000. The United States Postal Inspection Service is the investigative agency.
Ramon Gomez-Maldonado, Domingo Maldonado, Luis Alberto Cazares, Gregory Neil Gibson, Pamela Renee Gibson, Thomas Coy Gray Jr, Fernando Guzman-Martinez, and Jose L. Ramon Salgado. Drug Conspiracy and Possession of Methamphetamine with Intent to Distribute.Gomez-Maldonado, 39, Maldonado, Cazares, 26, Salgado, 28, of Tulsa, and Guzman-Martinez, 22, of Dallas, Texas, all aliens, Gregory Gibson, 31, Pamela Gibson, 36, Gray, 53, all of Tulsa, are charged with conspiring to possess with intent to distribute 500 grams or more of methamphetamine and to distribute 500 grams or more of methamphetamine; if convicted, the minimum statutory penalty is 10 years imprisonment and the statutory maximum penalty is Life imprisonment and a fine of $10,000,000. In addition, Gomez-Maldonado, Cazares, and Guzman-Martinez are charged with possessing with intent to distribute one kilogram of methamphetamine in May of 2014; if convicted, the minimum statutory penalty is 10 years imprisonment and the statutory maximum penalty is Life imprisonment and a fine of $10,000,000. Gomez-Maldonado, Cazares, Gregory Gibson and Pamela Gibson are charged with possessing with intent to distribute 50 grams or more of methamphetamine in June of 2014; Gomez-Maldonado, Cazares, and Gray are charged with possessing with intent to distribute methamphetamine in June of 2014; and Gomez-Maldonado, Cazares, and Salgado are charged with possessing with intent to distribute 50 grams or more of methamphetamine in July of 2014; if convicted of these crimes, the minimum statutory sentence is 5 years imprisonment and the maximum penalty is 40 years imprisonment and a fine of $5,000,000. The defendants would also face entry of a criminal forfeiture money judgment. The Drug Enforcement Administration is the investigative agency.
Jose Hernandez. Possession of Cocaine with Intent to Distribute and Possession of Marijuana with Intent to Distribute. Hernandez, 36, of Tulsa, is charged with possession of cocaine with intent to distribute and possession of marijuana with intent to distribute. If convicted, the statutory maximum penalty is 20 years in prison and a fine of $1,000,000 for possession of cocaine with intent to distribute and five years in prison and a fine of $250,000 for possession of marijuana with intent to distribute. The Tulsa Police Department is the investigative agency.
Dennis James Jefferson and Scotty Wayne Harjo. Drug Conspiracy and Use of a Communication Facility in Committing and Facilitating the Commission of a Drug Trafficking Felony. Jefferson, 27, of Terlton, and Harjo, 30, of Tulsa, are charged with conspiring to possess with intent to distribute 50 grams or more of methamphetamine. The defendants are also charged with using the U.S. Postal Service to accept a mail parcel containing methamphetamine and facilitating the distribution of methamphetamine. If convicted for the drug conspiracy, the defendants face a minimum of 5 years and maximum of 40 years in prison and a fine of up to $5,000,000. If convicted for use of the United States mail in committing a drug trafficking felony, the defendants are subject to a maximum prison sentence of four years and a fine of $250,000. The defendants would also face entry of a criminal forfeiture money judgment. The United States Postal Inspection Service is the lead investigative agency with assistance from Tulsa Police Department and Drug Enforcement Administration.
Luis Manuel Martinez-Martinez. Possession of a Firearm and Ammunition by an Alien Illegally in the United States and Alien in the United States After Deportation. Martinez-Martinez, 27, an alien illegally in the U.S., is charged with possessing a firearm and ammunition. The defendant is also charged with being in the U.S. illegally after deportation in April of 2011 near Laredo, Texas. If convicted, Martinez-Martinez faces up to 10 years in prison and a fine of $250,000 for possession of a firearm and ammunition and up to 20 years in prison and a $250,000 fine for being an alien in the U.S. after deportation. The U.S. Immigration and Customs Enforcement is the investigative agency.
Charles Jason Moreland. Influencing, Impeding, and Retaliating Against a Federal Official, Influencing, Impeding, and Retaliating Against the Immediate Family of a Federal Official, and Interstate Communications Containing Threats to Injure. Moreland, 31, of Tulsa, is charged with threatening to assault United States Senator Harry Reid and his immediate family members with the intent to interfere with and retaliate against Senator Reid while engaged in the performance of his official duties. The defendant is also charged with using interstate communication to transmit threats to injure Senator Reid. If convicted, the statutory maximum penalty of Counts One through Three is not more than 10 years in prison and a fine of $250,000. The Federal Bureau of Investigation is the investigative agency.
Frank Olmos Jr. Felon in Possession of Firearm and Ammunition. Frank Olmos, Jr. 33, of Tulsa, is charged with possessing one .45 ACP caliber pistol and ammunition after prior felony convictions. If convicted, the statutory maximum penalty is 10 years in prison and a fine of $250,000. The defendant would also forfeit the firearm and ammunition. The Federal Bureau of Investigation is the investigative agency.
Jamie Rascon. Bank Fraud. Rascon, 30, of Siloam Springs, Arkansas, is charged with two counts of defrauding the Bank of Oklahoma by means of forged checks. If convicted, the statutory maximum penalty is 30 years in prison and a fine of $1,000,000. The United States Postal Inspection Service is the investigative agency.
William Rivera-Lara. Alien in the United States After Deportation. Rivera-Lara, 29, is charged with having returned to the United States unlawfully after being deported in April of 2014 near Phoenix, Arizona. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the investigative agency.
Aaron Joseph Rock. Bank Robbery. Rock, 24, of Tulsa, is charged with robbing BancFirst in Sand Springs. If convicted, the statutory maximum penalty is 20 years in prison and a fine of $250,000. The Federal Bureau of Investigation is the investigative agency.
Dustin Scott Ross. Bank Fraud. Ross, 20, of Muskogee, is charged with five counts of bank fraud. Three counts allege that Ross presented Bank of Oklahoma with forged checks and two counts allege that Ross presented the Tulsa Federal Credit Union with forged checks. If convicted, the statutory maximum penalty for each count is 30 years in prison and a fine of $1,000,000. The United States Postal Inspection Service is the investigative agency.
Fermin Soto-Alvarez. Alien in the United States After Deportation. Soto-Alvarez, 29, is charged with having returned to the United States unlawfully after being deported in April of 2009 near Paso Del Norte, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the investigative agency.
Oseas Vera-Guganio. Alien in the United States After Deportation. Vera-Guganio, 30, is charged with having returned to the United States unlawfully after being deported in March of 2010 at Del Rio, Texas. If convicted, Vera-Guganio faces up to 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the investigative agency.
El Paso Man Sentenced to ten Years for Participating in Las Cruces-Based Methamphetamine Trafficking RingRead the Press Release
ALBUQUERQUE – Melchor Arroyos, 53, of El Paso, Texas, was sentenced this morning in federal court in Las Cruces, N.M., to 120 months in federal prison followed by five years of supervised release for his methamphetamine trafficking conviction. The sentence was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Field Division, and Acting Special Agent in Charge Mark Murray of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Arroyos, co-defendant Ernest Joe Marquez, 45, of Las Cruces, and nine others were arrested in May 2012, and charged with participating in a methamphetamine trafficking conspiracy from Jan. 2012 through May 2012. According to a superseding indictment filed in Oct. 2012, members of the conspiracy transported methamphetamine from El Paso, Texas, and Phoenix, Ariz. to Doña Ana County, N.M., where the methamphetamine was distributed to local drug dealers. Arroyos and Marquez were found guilty by a federal jury on July 31, 2013, after a three-day trial.
The trial evidence established that in March 2012, the DEA received court authorization to conduct a wiretap investigation and listen to communications occurring over Marquez’s telephone. The investigators learned that Marquez was conspiring with others to bring large quantities of methamphetamine from Texas and Arizona to New Mexico so that the drugs could be divided up, repackaged, and sold on the streets of Las Cruces. The investigation revealed that in April 2012, Marquez sent two women to Arizona to pick up a pound of methamphetamine. After taking possession of the methamphetamine, Marquez sold the methamphetamine to local drug dealers.
In May 2012, Marquez arranged for the delivery of another pound of methamphetamine. This time, Arroyos was responsible for delivering the methamphetamine. After Arroyos’ initial attempt to deliver the methamphetamine to Marquez was unsuccessful, the two men made arrangements for Arroyos to deliver the methamphetamine to Marquez at his home. Before Arroyos could make the delivery, he was arrested by an officer who executed a traffic stop on Arroyos’ vehicle and found a pound of methamphetamine hidden in the engine area of the vehicle.
Marquez has been in federal custody since his arrest in May 2012 and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Marquez faces a minimum of ten years to a maximum of life imprisonment.
This case was investigated by the Las Cruces offices of the DEA and ATF, with assistance from the U.S. Border Patrol, Hatch Police Department, the Motor Transportation Division of the New Mexico Department of Public Safety, New Mexico State Police, Las Cruces/Doña Ana County Metro Narcotics Agency, and Las Cruces Police Department Gang Task Force. It is being prosecuted by Assistant U.S. Attorneys Sarah M. Davenport, Marisa Lizarraga and Aaron O. Jordan.
The case was the result of a five-month investigation led by the DEA and ATF, which was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program. OCDETF is a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Dumper of Deadly Cyanide Pleads GuiltyRead the Press Release
SAN DIEGO – Raul Antonio Gonzalez Lopez pleaded guilty today to the Illegal Disposal of Hazardous Waste before United States Magistrate Judge Mitchell D. Dembin. In pleading guilty, Gonzalez Lopez admitted that on March 12, 2011, he drove to We Lend More, a business located in National City, California, to pick up trash. As he was aware, the trash included containers of acid and potassium cyanide. Gonzalez Lopez further admitted that on March 13, 2011, he dumped the trash from We Lend More at the Miramar Landfill, including containers of nitric acid and potassium cyanide (federally regulated hazardous wastes). The Miramar Landfill does not possess a permit that would allow it to accept federally regulated hazardous waste for disposal.
According to court documents, Joe Lowry, Chief Scientist for the U.S. Environmental Protection Agency advised that when combined, potassium cyanide and acids produce a deadly hydrogen cyanide gas. One breath of pure hydrogen cyanide gas would be enough to kill a person, and 50 parts per million (ppm) of hydrogen cyanide is the level that has been determined to be immediately dangerous to life or health. Lowry viewed the evidence from the case and prepared a dispersion model showing the threat area where the concentration of hydrogen cyanide is greater than or equal to 50 ppm, assuming a wind of 3 mph. The zone extends approximately 71 yards from the initial point of combination, and anyone within 30 yards when the chemicals combined could have been killed instantly.
In February of 2011, We Lend More and its owner, Marc Vogel, were convicted of aiding and abetting the illegal transportation and disposal of hazardous waste, following a jury trial. The evidence adduced at trial indicated that the acid (in a breakable glass bottle) and cyanide (in aged plastic containers) were disposed of together in the same cardboard box, which was dumped at the landfill. Because the landfill operators use heavy equipment on a regular basis to compact the face of the landfill, such activity would be expected to cause the containers to break and the chemicals (in the same box) to combine, posing grave risk to the landfill operator and anyone else within 30 yards (such as other landfill personnel or customers).
Gonzalez Lopez was arrested on January 14, 2014, in Mexico and extradited to the United States to face these charges. On July 16, 2014, Gonzalez Lopez appeared in court in San Diego.
DEFENDANT Case Number: Raul Antonio Gonzalez Lopez Age: 55 Tijuana, Mexico CHARGESUnlawful Disposal of Hazardous Waste– Title 42, U.S.C., Section 6928(d)
INVESTIGATING AGENCY
Maximum penalty: Five years in prison and $250,000 fineEnvironmental Protection Agency
Federal Bureau of Investigation*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
District Man Found Guilty by Jury of Felony Charges for Attacking Woman Inside Her Northwest Washington Home-Defendant Approached Victim as She Was Locking Outside Security Gate-Read the Press Release
WASHINGTON – Omar Rimmer, 39, of Washington, D.C., was found guilty by a jury today of carrying out an early-morning attack in which he forced his way into a woman’s residence and attempted to sexually assault her, U.S. Attorney Ronald C. Machen Jr. announced.
The jury found Rimmer guilty of assault with intent to commit first-degree sexual assault, attempted first-degree sexual assault, first-degree burglary, and kidnapping. The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Russell F. Canan scheduled sentencing for Oct. 24, 2014.
According to the government’s evidence, on Feb. 5, 2011, at about 3:15 a.m., the victim was walking home in the 500 block of Florida Avenue NW. Rimmer approached her from behind and began making small talk. When she reached her home, Rimmer continued walking. The victim unlocked the security gate and door. When she turned to close the security gate, Rimmer reappeared and asked the victim if he knew her. She did not.
As the victim turned the key to lock the security gate, Rimmer pulled the gate open, breaking the key off in the lock. Rimmer then forced his way inside the residence and pushed the victim to the floor. He got on top of the victim and began choking her while trying to remove her clothing. The victim was able to scream her male roommate’s name, which caused Rimmer to hesitate. The victim seized that opportunity to escape and lock herself in an upstairs bathroom and call 911.
In his haste to flee, Rimmer left behind a cigarette butt and a scarf inside the residence. These items contained his DNA, which led to his arrest.
In announcing the verdict, U.S. Attorney Machen commended the work performed by those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office, including Victim/Witness Advocate Elsa Resendiz; Criminal Investigator Nelson Rhone; Paralegal Specialist Jason Manuel; David Foster and La June Thames, of the Victim/Witness Assistance Unit; and Information Technology Specialist Anisha Bhatia. Finally, he praised the work of Assistant U.S. Attorney Jeff T. Cook, who investigated and prosecuted the matter.
14-180Defendant in Mortgage Fraud Scheme Pleads GuiltyRead the Press Release
Wasseem Shamoun pleaded guilty to conspiracy to commit bank fraud in the U.S. District Court for the Eastern District of Michigan today, announced the Justice Department and Internal Revenue Service (IRS). On July 16, 2013, a superseding indictment was unsealed charging Shamoun and six other individuals with conspiracy to commit bank fraud, multiple counts of bank fraud and other fraud charges relating to a mortgage loan scheme.
Court documents allege that from approximately January 2006 to December 2008, Shamoun and his co-defendants conspired to defraud lending institutions by obtaining mortgage loans using fraudulent information. Shamoun and others devised a scheme wherein they purchased property for approximately $5,000 to $40,000 per home, then recruited straw buyers to submit fraudulent loan applications for home mortgages in exchange for a fee. According to documents submitted to the court, Shamoun assisted in executing the scheme by selling properties to straw buyers and was personally responsible for a loss of approximately $394,000.
For the conspiracy charge, Shamoun faces a statutory maximum sentence of 30 years in prison and a $1 million fine. U.S. District Judge Bernard A. Friedman scheduled s entencing for Shamoun on Dec. 2.
This case was investigated by the FBI, IRS – Criminal Investigation and the Drug Enforcement Administration, and is being prosecuted by Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Justice Department’s Tax Division.
Dallas Man Guilty of Money LaunderingRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – A 51-year-old Dallas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Waddell “Wade” Jones pleaded guilty to money laundering and aiding and abetting today before U.S. Magistrate Judge Don D. Bush.
According to information presented in court, Jones admitted to receiving currency from an undercover officer and that he was told the currency was drug money derived from the sale of illegal narcotics. In exchange, Jones provided stolen U.S. Treasury Checks to the undercover officer. Jones admitted that he intended to conceal the currency that he believed to be from drug trafficking. A federal grand jury returned an indictment against Jones and Chijioke Obiora on May 28, 2014. Obiora is awaiting trial.
Jones faces up to 20 years in federal prison at sentencing. A sentencing date has not been set.
This case is being investigated by IRS Criminal Investigation, Texas Department of Public Safety Criminal Investigation, and U.S. Diplomatic Security and prosecuted by Assistant U.S. Attorney Jay Combs.
Dakota, Illinois Man Sentenced to 56 Months in Federal Prison for Charity Fraud SchemeRead the Press Release
ROCKFORD — A Dakota, Ill. man was sentenced yesterday afternoon to federal prison for conducting a scheme to defraud more than 3,600 victims out of more than $120,000 in charitable donations. Federal Judge Frederick J. Kapala sentenced CLIFFORD J. EDWARDS, JR., 34, (formerly of Dakota and Loves Park, Ill.) to 56 months in federal prison, to be followed by 3 years on supervised release. In addition, Edwards was sentenced to pay restitution of $122,468 to the victims of his scheme.
Edwards was indicted for mail fraud on June 18, 2013, and pleaded guilty to one count of mail fraud on May 1, 2014. In pleading guilty, Edwards admitted to establishing and operating two alleged charities – Helping Out, LLC and Smiles for Kids Foundations. According to his guilty plea, Edwards established call centers for the two charities and hired employees to make unsolicited telemarketing type telephone calls. Edwards admitted that he and his employees would falsely tell victims that donations they contributed would be used to benefit children with cancer and under-privileged children. In pleading guilty, Edwards admitted that instead of using the monies he raised for children, he kept all of the funds and used them for his own personal expenses and to operate his two phony charitable organizations. The scheme to defraud lasted for 3 years, between June 2010 and June 2013.
The case was investigated by the United States Postal Inspection Service in Chicago.
The sentence was announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Tony Gomez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.
The government was represented by Assistant U.S. Attorney John G. McKenzie.
Connecticut Man Pleads Guilty in White Plains Federal Court to Seven Bank Robberies and A Convenience Store RobberyRead 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 Investigaion (“FBI”), and Joseph A. D’Amico, Superintendent of the New York State Police (“NYSP”), announced that ANDREW RENDFLASH, 36, pleaded guilty today to seven bank robberies and a commercial robbery. The robberies occurred in New York, Connecticut, Massachusetts, and Rhode Island between April 2013 and January 2014.
U.S. Attorney Preet Bharara stated: “Andrew Rendflash engaged in a robbery spree, across four states and over many months. Now, thanks to the collaborative efforts of the FBI and our state and local partners, he has pled guilty to his crimes. I want to especially thank the officers of the Ridgefield Police Department for their assistance in the investigation and prosecution of this case.”
FBI Assistant Director-in-Charge George Venizelos stated: “The defendant’s guilty plea is a result of a cooperative investigative effort by federal, state and local authorities. This case should remind other criminals that the FBI and its law enforcement partners will vigorously pursue you and prosecutors will ensure you face justice for your crimes. We will continue to combine the skills of multiple law enforcement agencies to keep our streets safe and hold accountable those who break the law.”
NYSP Superintendent Joseph A. D’Amico stated: "The conclusion of this case is a direct result of the dedication and effort put forth by State Police investigators in Putnam and Westchester counties, and our partner agencies. Once again, good police work put a suspect behind bars whose crimes hurt not only the businesses he targeted, but also innocent customers. I thank our law enforcement partners for their cooperation and hard work during this lengthy investigation that spanned multiple states."
RENDFLASH, who was previously arrested on Connecticut state charges and detained, was arraigned on an eight-count Information on August 11, 2014, before U.S. Magistrate Judge Lisa Margaret Smith, and pleaded guilty to all counts before Judge Smith today. The Information charges RENDFLASH with the robbery of a branch of First Niagara Bank in Ridgefield, Connecticut, on or about January 24, 2014; the robbery of a branch of Citizen’s Bank in Coventry, Rhode Island, on or about December 26, 2013; the robbery of a branch of People’s United Bank in Brewster, New York, on or about December 23, 2013; the robbery of a branch of People’s United Bank in Holyoke, Massachusetts, on or about December 16, 2013; the robbery of a branch of Chase Bank in Somers, New York, on or about November 19, 2013; the robbery of a branch of TD Bank in Waterbury, Connecticut, on or about November 9, 2013; the robbery of a branch of Naugatuck Savings Bank in Southbury, Connecticut, on or about April 3, 2013; and the robbery of a convenience store in Waterbury, Connecticut, on or about November 16, 2013.
The defendant faces a maximum possible sentence of 20 years in prison for each of the eight counts to which he pleaded guilty. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. RENDFLASH is scheduled to be sentenced by U.S. District Court Judge Nelson S. Román in White Plains federal court on November 14, 2014, at 10:30 a.m.
Mr. Bharara praised the outstanding investigative work of the FBI; the New York State Police; the Connecticut State Police; the Ridgefield, Connecticut, Police Department; the Waterbury, Connecticut, Police Department; the Holyoke, Massachusetts, Police Department; and the Coventry, Rhode Island, Police Department.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Michael Gerber is in charge of the prosecution.
Civil Rights Settlement in Manhattan Federal Court Creates More Accessible Housing Opportunities for New YorkersRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today the settlement by consent decree of a federal civil rights lawsuit in Manhattan federal court alleging that Tower 31, a residential apartment building at 9 West 31st Street in Manhattan, is inaccessible to persons with disabilities in violation of the Fair Housing Act (“FHA”). In the settlement, developers TOWER 31, LLC and ATLANTIC 31st, LLC, agree to retrofit Tower 31 to remove obstacles to accessibility, allow inspections of a second building to ensure FHA compliance, create a fund to compensate aggrieved people, and pay a civil penalty of $35,000. The consent decree was approved on August 11 by U.S. District Judge Allison J. Nathan. The United States also sued COSTAS KONDYLIS & PARTNERS, LLP and ALAN L. GOLDSTEIN, the architects that designed Tower 31, and that case is still pending.
Manhattan U.S. Attorney Preet Bharara said: “This settlement will not only make Tower 31 a more accessible housing option, but will also ensure that federal standards of accessibility are met in future buildings. We are pleased that Tower 31’s developers promptly recognized the need to provide accessible housing to all New Yorkers. This is the ninth case of this type brought in this district, and our Office will continue to vigorously enforce the laws in place to provide full access consistent with the law for New Yorkers with disabilities to New York City’s rental housing market.”
The United States’ suit alleges that Tower 31 was designed and constructed in violation of the design and construction provisions of the FHA, which requires that new multi-family housing complexes include certain features accessible to persons with disabilities. According to the Complaint, Tower 31, a 283-rental unit building located at 9 West 31st Street in Manhattan, has multiple inaccessible features, including high thresholds interfering with accessible routes, insufficient space within bathrooms and kitchens for people in wheelchairs, a lack of appropriate signage for people with visual impairments, and lobby features that cannot accommodate people using wheelchairs.
Inaccessible features at Tower 31 were first brought to the Government’s attention through testing performed by the Fair Housing Justice Center. The U.S. Attorney’s Office frequently relies on testers to determine whether property owners are engaging in discrimination on the basis of race, disability, or other protected characteristics, and frequently files lawsuits based on the results of such testing.
The claims against ALAN L. GOLDSTEIN and the architectural firm COSTAS KONDYLIS & PARTNERS, LLP were not resolved by the consent decree and will go forward. The Government seeks a court order enjoining the architects and their successors from designing multi-family housing without the accessibility features required by federal law. The Government also seeks, among other relief, damages for persons harmed by the architects’ unlawful practices, and a civil penalty to vindicate the public interest.
Aggrieved individuals may be entitled to monetary compensation from the fund created through today’s settlement. Aggrieved individuals may include those who were:
- Injured by a lack of accessible features at Tower 31;
- Discouraged from living at Tower 31 because of the lack of accessible features;
- Required to pay to have an apartment at Tower 31 made accessible,
- Prevented from having visitors because of a lack of accessible features at Tower 31; or
- Otherwise injured or discriminated against on the basis of disability as a result of the design or construction of Tower 31.
People who may be entitled to compensation should file a claim by contacting the Civil Rights Complaint Line at (212) 637-0840, using the Civil Rights Complaint Form available on the United States Attorney’s Office’s website http://www.justice.gov/usao/nys/civilrights.html, or sending a written claim to:
U.S. Attorney’s Office, Southern District of New York
86 Chambers Street, 3rd Floor
New York, New York 10007
Attention: Chief, Civil Rights Unit
The case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorneys Carina H. Schoenberger, Emily E. Daughtry, Li Yu, and Jessica Jean Hu are in charge of the case.
Tower 31 LLC Complaint
Chicago Area Man Sentenced for Sex Trafficking of MinorsRead the Press Release
St. Louis, MO – REGINALD WILLIAMS was sentenced to 240 months on multiple charges involving the interstate transportation of two minors with the intent to engage in prostitution.
According to testimony presented at trial, on September 12, 2012, Collinsville, Illinois police received a report regarding a missing 16-year-old girl who was being forced to work as a prostitute by one or several adult males. The person reporting the information was familiar with online postings on the website, www.backpage.com, in which photographs of the girl were used to offer her services for commercial sex. The telephone number associated with the advertisement was recognized to be used by "Reggie," who was later identified as defendant Reginald Williams. Detectives reviewed the on-line advertisement, which contained sexually suggestive language and listed the poster’s age to be 20 years old. However, Illinois police were able to confirm that the girl was born in 1996.
Investigators also learned that a second minor female was believed to be in the 16-year-old’s company at a hotel in St. Louis County. Detectives from Illinois then contacted the St. Louis FBI and the St. Louis County Police Department.
On September 13, 2012, an undercover detective called the phone number listed in the online advertisement to set up a paid sex "date" with the two girls. When officers arrived at the hotel, they observed a person later identified as defendant Reginald Williams exit the same hotel room where the two minor females were eventually found. Williams was arrested on the parking lot. When officers went to the room they found both girls, ages 16 and 17. Thereafter, officers determined that Williams transported the 16-year-old girl to the St. Louis area and Chicago with the intent she engage in prostitution. Officers also determined that Williams had attempted to recruit the 17-year-old girl and posted her on www.backpage.com, in which photographs of the girl were used to offer her services for commercial sex as well.
Williams, from the Chicago, Illinois area, was convicted in March of one felony count each of interstate transportation of a minor with the intent to engage in prostitution, sex trafficking a minor, attempted sex trafficking of a minor, possession of a firearm in furtherance of a crime of violence, and use of interstate facilities to promote prostitution. He appeared today for sentencing before United States District Judge Jean C. Hamilton.
In addition to the Collinsville, Illinois and St. Louis County police departments, this case was also investigated by the Federal Bureau of Investigation.
Chastain Montgomery, Sr. Sentenced to Life in Federal Prison for Robbery and Murder of Henning Postal WorkersRead the Press Release
Memphis, TN – Chastain Montgomery, Sr., 50, of Lavergne, TN, was sentenced to consecutive life sentences in federal prison for the murders of United States Postal Service employees Paula Robinson and Judy Spray, announced Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee; Thomas Noyes, Inspector in Charge of the Charlotte Division, United States Postal Inspection Service; and Mark Gwyn, Director of the Tennessee Bureau of Investigation.
On May 22, 2014, Montgomery pled guilty to the seven count superseding indictment and avoided facing the death penalty for his crimes.
“The senseless and heinous murders of Paula Robinson and Judy Spray have left an irreplaceable void throughout the entire community,” said U.S. Attorney Edward Stanton. “I want to commend the tireless efforts of federal, state, and local law enforcement who assisted with the investigation and prosecution of this case. The life sentence without the possibility of parole imposed upon Chastain Montgomery, Sr. today will hopefully bring justice and a meaningful measure of closure to the Spray and the Robinson/Croom families.”
“Today’s sentence of Chastain Montgomery, Sr. once again shows the determination of the U.S. Postal Inspection Service to bring criminals to justice who take the lives of postal employees,” stated Inspector in Charge Thomas Noyes. “The cooperation among federal, state, and local law enforcement was second to none. We are fortunate to have such determined law enforcement partners who are willing to work countless hours to see these criminals identified and prosecuted.”
“We sincerely hope today’s sentencing brings some small sense of justice for the families and friends of Paula Robinson and Judy Spray,” said TBI Director Mark Gwyn. “Though it will probably never fully bring closure, we are thankful the cooperation of law enforcement will ensure the man responsible will never go free.”
According to the facts alleged in the superseding indictment and revealed during subsequent hearings, on October 18, 2010, Montgomery, Sr. and his son Chastain Montgomery, Jr. drove from Nashville, TN to Henning, robbed the United States Post Office, and then murdered Sales and Service Associate Robinson and Rural Carrier Associate Spray.
Following their crimes, they returned to Nashville. Eight days later, Montgomery, Jr. stole a Nissan Frontier pick-up truck in Smyrna, TN and used it as the getaway vehicle following their robbery at gunpoint of Southeast Financial Credit Union in Lavergne, TN on October 29, 2010.
One month later on November 29, 2010, the pair stole a Chevy Venture minivan and used it as a getaway vehicle following the robbery at gunpoint of Mid-South Bank in Smyrna, TN.
On February 14, 2011, the pair made plans to leave the Middle Tennessee area. Montgomery, Jr. carjacked a man and stole his Chevrolet pick-up truck, driving it from Nashville to Mason, TN. During the journey he was observed by Chief Deputy Sheriff Mike Smothers of the Haywood County Sheriff’s Department, who began a vehicular pursuit.
Chief Deputy Smothers reported that Montgomery, Jr. began driving at an excessive rate of speed and veered into other lanes in what appeared to be an attempt to cause an auto accident. Chief Deputy Smothers was joined in his pursuit by Mason Police Chief J. C. Paris.
When Montgomery, Jr. entered the town of Mason, he exited his vehicle and began shooting at members of law enforcement and innocent civilians outside a nearby market. Chief Deputy Smothers returned fire and struck Montgomery, Jr. who died at the scene.
Law enforcement immediately cordoned off the crime scene and began processing evidence. While doing so, officials noticed Montgomery, Sr. cross the crime scene barrier and begin moving toward the Chevy truck driven by his son. He was taken into custody and transported to the Tipton County Sheriff’s Department. While there, Montgomery, Sr. was interviewed by United States Postal Inspectors and made a full confession to all of his crimes.
Law enforcement confiscated a number of weapons and other items from the Mason crime scene, including the Ruger 9mm pistol and the Smith & Wesson .40 caliber pistol used to kill Robinson and Spray; a .45 caliber Glock pistol; a .380 pistol; two Mossburg 12 gauge shotguns; a Remington 12 gauge shotgun; a Springfield 9mm pistol; a Rossi .357 Magnum revolver; large amounts of ammunition; ski masks and latex gloves.
In addition to the prison sentence, Senior United States District Judge Jon Phipps McCalla ordered Montgomery to serve five years of supervised release plus restitution. There is no parole in the federal system.
This case was investigated by the United States Postal Inspection Service; the Tennessee Bureau of Investigation; the Tennessee Highway Patrol; 25th District Attorney General Mike Dunavant’s Office; the Lauderdale County Sheriff’s Department; the Tipton County Sheriff’s Department; the Haywood County Sheriff’s Department; the Mason Police Department; the Henning Police Department; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Federal Bureau of Investigation; the United States Secret Service; the Tennessee Department of Correction; the U.S. Marshals Service; the Lavergne Police Department; the Smyrna Police Department; and the Metropolitan Nashville Police Department.
United States Attorney Edward L. Stanton III; Assistant U.S. Attorney Tony Arvin; Assistant U.S. Attorney Lorraine Craig; Assistant U.S. Attorney Stuart Canale; and Capital Case Section Attorney Michael Warbel represented the government.Camden County Man Pleads Guilty to Forced Sex Trafficking,Read the Press Release
Human Trafficking Rescue Project
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Camden County, Mo., man pleaded guilty in federal court today to charges related to the forced sex trafficking of two women.
Joshua Kain Smith, 36, of Camden County, pleaded guilty before U.S. District Judge Gary A. Fenner to one count of sex trafficking and one count of attempted sex trafficking. Under the terms of today’s plea agreement, Smith will be sentenced to 20 years in federal prison without parole and will be required to pay restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
By pleading guilty today, Smith admitted that he used force, threats of force, fraud and coercion to cause a person (identified in court documents as “FV1” – Female Victim 1) to engage in prostitution, from which he benefitted financially, between Nov. 15, 2011, and March 15, 2012. Smith also admitted that he used force, threats of force, fraud and coercion in an attempt to cause another person (identified in court documents as “FV2” – Female Victim 2) to engage in prostitution between Dec. 1, 2010, and Nov. 15, 2011.
Smith met FV1 on a dating Web site in 2011. Shortly after they began dating Smith became physically abusive. Smith was possessive and wanted FV1 around him at all times. When FV1 first met Smith she had a job at a hotel but lost the job when Smith forced her to stop working. Smith arranged for FV1 to have sexual activity with other men and told her she did not have a choice but to participate. Smith demanded the money FV1 received in exchange for sexual activity.
Smith physically abused FV1 and threatened to kill her and her family if she left him. In December 2011 Smith threatened to kill FV1 if she did not travel to Florida with him. Smith also threatened to harm his own family members if she ever contacted authorities for help. Smith threatened her with a knife and tied her up on one occasion. While in Florida, Smith forced FV1 to commit commercial sex acts with customers to support him and his drug habit. After FV1 was raped by a group of men while purchasing drugs for Smith, she was able to get away with the help of one of Smith’s family members. FV1 has since obtained an order of protection against Smith.
Smith met FV2 through an Internet dating service and they began dating in December 2010. The day after FV2 initially met Smith she bailed him out of jail in Eldon, Mo., and attempted to break up with him at that time. Smith became enraged, threatened to kill FV2 and tore all of FV2’s clothing off. For the next year FV2 was in a physically, emotionally and sexually abusive relationship with Smith. FV2 stated that Smith physically assaulted her on numerous occasions, and on at least two occasions wrapped a belt around her neck until she passed out. FV2 estimated Smith threatened to kill her and her family at least 100 times. Smith attempted to convince FV2 to have sex with other men. Smith solicited FV2 to help him open an escort service but she refused.
FV2 subsequently obtained an order of protection against Smith, which he violated on numerous occasions. FV2 maintained many of the threatening texts and e-mails she received from Smith to assist the police in the event she was murdered. Smith posted Craigslist advertisements without her knowledge or consent, advertising FV2 for sexual activity. FV2 received well over 100 telephone calls from men responding to the advertisements.
This case is being prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by the FBI in conjunction with the Human Trafficking Rescue Project.California Prison Inmate Pleads GuiltyRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former California prison inmate, incarcerated for state sex offenses, pleaded guilty in federal court today to using a smuggled cell phone to distribute child pornography over the Internet.
Eric Lee Bederson, 37, an inmate at the California Medical Facility in Vacaville, Calif., pleaded guilty before U.S. Chief District Judge Greg Kays to two counts of distributing child pornography. At the time he committed these offenses, Bederson was serving a 16-year state sentence in California for a charge involving the aggravated sexual abuse, sexual abuse, and abusive sexual conduct of a minor.
By pleading guilty today, Bederson admitted that he used smuggled cell phones to distribute numerous images and videos of child pornography to an undercover federal agent. Between Sept. 29 and Oct. 8, 2011, he sent six e-mails to an undercover agent with U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), which included a total of 164 images and 10 videos of child pornography. Bederson sent this child pornography with the hope and expectation that the undercover HSI agent (and others) would reciprocate in sending child pornography back to him in return. Bederson also admitted that his e-mail accounts contained multiple gigabytes of emails and attachments of child pornography.
For example, on Sept. 29, 2011, Bederson sent an e-mail with 24 attached images of child pornography to the undercover federal agent. On Oct. 1, 2011, Bederson sent another e-mail to the undercover federal agent, which contained a video of child pornography.
Under federal statutes, Bederson is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 80 years in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the California State Prison security office.