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12 August 2014
Caldwell Man Sentenced on Gun ChargeRead the Press Release
BOISE – Nathan John Vert, 30, of Caldwell, Idaho, was sentenced today in United States District Court to 57 months for unlawfully possessing a firearm, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Vert to serve three years of supervised release and to forfeit the firearm he illegally possessed. He pleaded guilty to the charge on May 19, 2014.
According to court records, Vert unlawfully possessed a 12-gauge shotgun, which was found in Vert’s possession by Nampa Police Department officers after Vert was involved in a traffic accident. Vert is prohibited from possessing firearms because he was convicted in 2003 of delivery of a controlled substance, a felony, in Canyon County.
The case was investigated by the Nampa Police Department and Treasure Valley Metro Violent Crimes Task Force. The Metro Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Caldwell Man Pleads Guilty to Tax EvasionRead the Press Release
BOISE – Herminio Sandoval, 57, of Caldwell, Idaho, pleaded guilty today to conspiracy to attempt to evade and defeat tax, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Sandoval and his unindicted co-conspirators owed more federal tax for the calendar years 1998 through 2012 than they claimed and paid. The defendant agreed that he failed to report $750,000 in income to the Internal Revenue Service. The charge of income tax evasion is punishable by up to five years imprisonment, a term of supervised release of not more than three years, and a maximum fine of $250,000 or twice the defendant’s gain.
Sentencing is scheduled for October 21, 2014, in Boise before United States District Judge Edward J. Lodge.
The case was investigated by the Internal Revenue Service-Criminal Investigations.
Bowling Green, Kentucky, Man Sentenced to 24 Months in Prison for Shipping Firearms InternationallyRead the Press Release
– Firearms were secreted inside video game systems for shipment to foreign addresses
BOWLING GREEN, Ky. – A Bowling Green, Kentucky, man was sentenced in United States District Court yesterday, to 24 months in prison, followed by two years of supervised release for exporting firearms from the United States announced David J. Hale, United States Attorney for the Western District of Kentucky.
Adam Bunger, age 34, pleaded guilty to a four-count federal Indictment on March 5, 2014 in Bowling Green before Chief United States District Judge Joseph H. McKinley, Jr. According to the plea agreement, between June 13, 2013, and August 8, 2013, Bunger knowingly exported and sent firearms from the United States. He did so contrary to the laws and regulations of the United States. Specifically, he placed in the United States Mail a number of parcels that included firearms that had been hidden inside videogame systems. He shipped the firearms to Australia, Sweden, and the United Kingdom. Two of the firearms shipped in foreign commerce had the manufacturer’s serial number removed, obliterated, and altered.
Bunger was not a licensed importer, licensed manufacturer, or licensed dealer of firearms. Nevertheless, he willfully engaged in the business of dealing in firearms. In the course of that conduct, he shipped and transported firearms in foreign commerce as specified above. He also knowingly and willfully delivered packages to a common or contract carrier for transportation and shipment in foreign commerce. The persons receiving the shipments from Bunger were not licensed importers, licensed manufacturers, licensed dealers, or licensed collectors of firearms. Additionally, Bunger did not provide written notice to the carrier that the packages contained firearms or ammunition.
According to an Affidavit attached to a Criminal Complaint, Australian Federal Police contacted a Special Agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives on July 8, 2013, after a forensic examination of a parcel shipped from Bowling Green, Kentucky, revealed two empty magazines, gun parts and a Modelo Super 9mm pistol inside an Xbox game system’s interior cavity. The gun sale was made through a website -- Black Market Reloaded. On July 18, 2013, two international packages were seized from the Bowling Green Post Office and a search warrant revealed a disassembled, Uzi-style pistol having an obliterated serial number contained inside a hollow Xbox console, addressed to an individual in the United Kingdom. The second international package, addressed to an individual in Australia, contained firearm parts for an assault rifle which were concealed inside a DVD player. On August 9, 2013, a federal search warrant was obtained and executed on the other international package seized from the U.S. Post Office branch in Bowling Green. The package, addressed to an individual in Sweden, contained a disassembled Taurus .22 caliber pistol with an obliterated serial number and magazine. The firearm was contained inside a metal computer switching power supply box. Two postal clerks identified the defendant, Adam Bunger, as the individual who attempted to ship the international packages.
Assistant United States Attorney Jo E. Lawless is prosecuted the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), in conjunction with the Australian Federal Police, and with the assistance of the United States Postal Inspection Service, conducted the investigation.
Boston, Baltimore Men Plead Guilty to Charges of Sex Trafficking A MinorRead the Press Release
BOSTON – Two men, one from Boston and one from Baltimore, pleaded guilty today in connection with the sex trafficking of a 15-year-old girl.
Mark Pinnock, 23, of Boston, pleaded guilty to recruiting and transporting a minor to engage in prostitution. Martin Pinkney, 23, of Baltimore, pleaded guilty to conspiracy to sex traffic a minor victim. In March 2014, Pinnock, Pinkney, and their co-defendant, Justin Richardson, were originally charged. Richardson pleaded guilty to a sex trafficking charge yesterday. All three men are scheduled to be sentenced by U.S. District Court Judge Nathaniel M. Gorton in November 2014.
In late December 2013, officers responded to a 9-1-1 call from a Cambridge hotel, where they found the 15-year old victim and Pinnock. The minor victim stated that Richardson and Pinkey had arranged for her to travel by bus from Baltimore to Boston. Pictures were taken of the minor victim in both Baltimore and Boston and used to post ads soliciting prostitution on the websites Backpage and Craigslist. While in Boston, the minor victim completed commercial sex acts at the direction of Pinnock at two area hotels.
Pinnock’s conviction carries a mandatory minimum sentence of 10 years to life in prison, a minimum term of five years and up to a lifetime of supervised release, a fine of $250,000, and restitution. Pinkney’s conviction carries a maximum sentence of a lifetime in prison, up to five years supervised release, a fine of $250,000, and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement, Homeland Security Investigations in Boston; and Cambridge Police Commissioner Robert C. Haas, made the announcement today. The U.S. Attorney’s Office also wishes to thank Middlesex County District Attorney Marian C. Ryan’s office for its participation in the investigation that led to today’s plea. The case is being prosecuted by Assistant U.S. Attorneys Seth Kosto and Carlos López of Ortiz’s Civil Rights Enforcement Team.The aggressive enforcement of federal civil rights laws is a top priority of the U.S. Attorney’s Office for the District of Massachusetts. Since U.S. Attorney Ortiz created the Civil Rights Enforcement Team in 2010, the Office has substantially increased its focus on civil and criminal civil rights enforcement. In the last four years, the office has charged multiple defendants with sex trafficking and other criminal civil rights violations.
Bellevue Man Pleads Guilty to Drug ChargeRead the Press Release
BOISE – Ismael Hernandez Valle, 18, of Bellevue, Idaho, pleaded guilty today in United States District Court to distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Hernandez Valle sold methamphetamine in December 2013 to another person who was assisting law enforcement as a confidential informant. Hernandez Valle’s co-defendant, Esteban Villegas-Gamez pleaded guilty to similar charges in May 2014 and was sentenced to 46 months yesterday.
The charge is punishable by up to twenty years in prison, a maximum fine of $1 million, and at least three years of supervised release. Hernandez Valle is scheduled for sentencing on October 21, 2014, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; and Blaine County Narcotics Enforcement Team. Other agencies that assisted with the investigation include the U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Idaho State Police. The Blaine County Narcotics Enforcement Team includes the Blaine County Sheriff’s Office, Sun Valley Police Department, Hailey Police Department, Ketchum Police Department, and Bellevue Marshal’s Office.
The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Baltimore Man Sentenced to Prison for Stealing over $175,000 in Social Security BenefitsRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Paul Cawley, age 50, of Baltimore, Maryland late yesterday to 15 months in prison followed by three years of supervised release for stealing over $175,000 in social security benefits. Judge Bennett also ordered Cawley to pay restitution of $175,213.70
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.
According to Cawley’s plea agreement, Cawley’s mother received benefits under the Social Security Administration’s (SSA) Survivor’s Insurance Benefits Program (Title II Program) between 1990 and her death on September 21, 1997. SSA was not notified of Cawley’s mother’s death and continued to send her benefits to a post office box which Cawley controlled. Cawley admitted that he received the benefit checks and endorsed them for deposit into a joint bank account he had with his mother. From September 21, 1997 through July 3, 2012, when the benefits were terminated, SSA paid a total of $175,213.70 in Title II Program benefits on behalf of Cawley’s mother. Cawley made regular withdrawals from the bank account, including cash withdrawals at ATMs and electronic bill payments, spending substantially all the SSA benefits deposited into the joint account.
United States Attorney Rod J. Rosenstein praised the SSA-OIG for its work in the investigation and thanked Special Assistant U.S. Attorney Paul Nitze, on detail from the Social Security Administration, who prosecuted the case.Assistant U.S. Attorney Selected as Oklahoma Region II Prosecutor of the YearRead the Press Release
TULSA, Okla. — Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma, announced Robert T. Raley, Assistant United States Attorney and current Organized Crime Drug Enforcement Task Force (OCDETF) prosecutor, was named the Oklahoma Region II Prosecutor of the Year. The award was presented by the Association of Oklahoma Narcotic Enforcers (A-ONE) on August 7, 2014, in Tulsa, Oklahoma.
In 2013, Raley prosecuted and helped supervise 12 wire taps which resulted in the indictment and prosecution of multiple defendants. These prosecutions included a two week jury trial of a drug trafficking organization which resulted in a 20 year prison sentence.
These cases resulted from state and local investigations from the Oklahoma Bureau of Narcotics and the Tulsa Police Department. Raley also prosecutes cases for the Drug Enforcement Administration, the Department of Homeland Security, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Raley sits on the High Intensity Drug Trafficking Area (HIDTA) Oklahoma Advisory Board, as well as the HIDTA Executive Board in Dallas where he represents all Oklahoma Federal law enforcement. He is a former State of Oklahoma Assistant Attorney General, Wagoner County Assistant District Attorney, and Project Director of the Multi-County Drug Task Force.
Raley has previously won the Oklahoma Region II Prosecutor of the Year Award and State of Oklahoma Prosecutor of the Year Award. Raley has been with the U.S. Attorney’s Office since 1996.
Appeals Court Vacates Probationary Sentence for Vendor Who Bribed Two-Year College ChancellorRead the Press Release
BIRMINGHAM -- A federal appeals court ruled today that a district judge's sentence of probation was unreasonable for a computer software vendor who paid more than $600,000 in bribes over four years to the chancellor of Alabama's two-year college system, announced U.S. Attorney Joyce White Vance.
After the government challenged the sentence on appeal, the U.S. Court of Appeals for the Eleventh Circuit vacated the district court's 2011 sentence for JAMES WINSTON HAYES and returned the case to U.S. District Judge Virginia Emerson Hopkins for resentencing.
Hayes, 70, formerly owned ACCESS Group Software, a Walker County company that sold educational computer software to the Alabama Department of Postsecondary Education. ACCESS did business with more than 25 two-year colleges and technical schools in Alabama. Hayes pleaded guilty in 2008 to bribing Roy Johnson, then chancellor of the two-year college system, and to conspiring to commit money laundering.
From 2002 to 2006, Hayes paid Johnson more than $600,000 in bribes, and in return, Hayes' software company obtained lucrative government contracts that earned his company more than $14 million in revenue and about $5 million in profit.
"As corruption cases go, this was bribery writ large, and on this record the district court's significant variance down to probation cannot stand," the appeals court wrote.
"Bribery cannot properly be seen as a victimless crime, for in a sense it threatens the foundation of democratic government," the appeals court wrote. "Putting aside the financial havoc it can cause, bribery tears at the general belief of the citizenry that government officials will carry out their duties honestly, if not always competently."
Johnson pleaded guilty in the case to charges of bribery, conspiracy to commit bribery, conspiracy to commit money laundering, obstruction of justice and tampering with a witness. Johnson was sentenced to six years and six months in prison. Both Hayes and Johnson assisted the government in its investigation of corruption in the two-year college system after they were charged. Including Hayes and Johnson, the investigation resulted in 17 convictions.
Assistant U.S. Attorney George Martin prosecuted the case and Assistant U.S. Attorney Praveen Krishna handled the case on appeal.
Appeals Court Vacates Probationary Sentence for Vendor Who Bribed Two-Year College ChancellorRead the Press Release
BIRMINGHAM -- A federal appeals court ruled today that a district judge's sentence of probation was unreasonable for a computer software vendor who paid more than $600,000 in bribes over four years to the chancellor of Alabama's two-year college system, announced U.S. Attorney Joyce White Vance.
After the government challenged the sentence on appeal, the U.S. Court of Appeals for the Eleventh Circuit vacated the district court's 2011 sentence for JAMES WINSTON HAYES and returned the case to U.S. District Judge Virginia Emerson Hopkins for resentencing.
Hayes, 70, formerly owned ACCESS Group Software, a Walker County company that sold educational computer software to the Alabama Department of Postsecondary Education. ACCESS did business with more than 25 two-year colleges and technical schools in Alabama. Hayes pleaded guilty in 2008 to bribing Roy Johnson, then chancellor of the two-year college system, and to conspiring to commit money laundering.
From 2002 to 2006, Hayes paid Johnson more than $600,000 in bribes, and in return, Hayes' software company obtained lucrative government contracts that earned his company more than $14 million in revenue and about $5 million in profit.
"As corruption cases go, this was bribery writ large, and on this record the district court's significant variance down to probation cannot stand," the appeals court wrote.
"Bribery cannot properly be seen as a victimless crime, for in a sense it threatens the foundation of democratic government," the appeals court wrote. "Putting aside the financial havoc it can cause, bribery tears at the general belief of the citizenry that government officials will carry out their duties honestly, if not always competently."
Johnson pleaded guilty in the case to charges of bribery, conspiracy to commit bribery, conspiracy to commit money laundering, obstruction of justice and tampering with a witness. Johnson was sentenced to six years and six months in prison. Both Hayes and Johnson assisted the government in its investigation of corruption in the two-year college system after they were charged. Including Hayes and Johnson, the investigation resulted in 17 convictions.
Assistant U.S. Attorney George Martin prosecuted the case and Assistant U.S. Attorney Praveen Krishna handled the case on appeal.
14 Individuals Charged with Trafficking Identities of Puerto Rican U.S. CitizensRead the Press Release
Fourteen individuals were charged in three indictments in Puerto Rico with conspiracy to commit identification fraud, money laundering, aggravated identity theft and passport fraud in connection with their alleged roles in a scheme to traffic the identities and corresponding identity documents of Puerto Rican U.S. citizens.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rosa Emilia Rodriguez-Velez for the District of Puerto Rico, Principal Deputy Assistant Secretary Thomas Winkowski of U.S. Immigration and Customs Enforcement (ICE), which oversees Homeland Security Investigations (HSI), Chief Postal Inspector Guy Cottrell of the U.S. Postal Inspection Service (USPIS), Chief Richard Weber of the Internal Revenue Criminal Investigation Division (IRSCID) and Director Bill Miller of the State Department’s Diplomatic Security Service (DSS) made the announcement.
The multi-count indictments were returned by a federal grand jury on Aug. 6, 2014. Since that time, five of the defendants have been found and arrested (four in Puerto Rico and one in Florida). They will be arraigned in federal court this week. Arrest warrants have been issued for the remaining defendants, who will make their initial appearances in federal court in the districts in which they are arrested.
According to the indictments, from at least July 2008 through April 2014, conspirators in the mainland United States and in Puerto Rico sold the identities and corresponding Social Security cards, Puerto Rico birth certificates and other identification documents of Puerto Rican U.S. citizens to undocumented aliens and others residing in the mainland United States.
Specifically, the indictments allege that individuals located in the Caguas, Rio Piedras and San Juan areas of Puerto Rico (suppliers) obtained Puerto Rican identities and corresponding identity documents, and conspirators in various locations in the United States (identity brokers) solicited customers for those identities and documents. The identity brokers allegedly sold the identities and documents to the customers for prices ranging from $700 to $2,500 per set of Social Security cards and corresponding Puerto Rico birth certificates.
According to the indictment, the identity brokers ordered the identity documents from the suppliers by making coded telephone calls, including using terms such as “shirts,” “uniforms” or “clothes” to refer to identity documents. The suppliers generally requested that the identity brokers send payment for the documents through a money transfer service to names provided by the suppliers. The conspirators frequently confirmed payee names and addresses, money transfer control numbers and trafficked identities via text messaging. The suppliers allegedly retrieved the payments from the money transfer service and sent the identity documents to the brokers using express, priority or regular U.S. Mail.
According to the indictments, once the identity brokers received the identity documents, they delivered the documents to the customers and obtained the remaining payment from the customers. The brokers generally kept the second payment for themselves as profit. Some identity brokers allegedly assumed a Puerto Rican identity themselves and used that identity in connection with the trafficking operation.
As alleged in the indictments, the customers generally obtained the identity documents to assume the identity of Puerto Rican U.S. citizens and obtain additional identification documents, such as state driver’s licenses. Some customers allegedly obtained the documents to commit financial fraud and others attempted to obtain U.S. passports.
The indictments alleges that various identity brokers were operating in Indianapolis, Columbus and Seymour, Indiana; Aurora, Illinois; Bartow, Florida; Lawrenceville, Jonesboro and Norcross, Georgia; Salisbury, Maryland; Columbus, Ohio; Lawrence and Springfield, Massachusetts; Grand Rapids, Michigan; Philadelphia, Pennsylvania; Houston, Texas; Guymon, Oklahoma; Huron, South Dakota and Albertville, Alabama.
The charges announced today are the result of Operation Island Express II, an ongoing, nationally-coordinated investigation led by the ICE-HSI Chicago Office and USPIS, DSS and IRS-CID offices in Chicago, in coordination with the ICE-HSI San Juan Office. The Illinois Secretary of State Police provided substantial assistance. The ICE-HSI Attaché office in the Dominican Republic, National Drug Intelligence Center - Document and Media Exploitation Branch and International Organized Crime Intelligence and Operations Center (IOC-2) provided invaluable assistance, as well as various ICE, USPIS, DSS and IRS CI offices around the country.
The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section, with the assistance of the Criminal Division’s Human Rights and Special Prosecution Section, and the support of the U.S. Attorney’s Office for the District of Puerto Rico.
Anyone who believes that their identity may have been compromised by the crimes that are the subject of to this investigation may contact the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) and its online tip form at www.ice.gov/tipline . Anyone who may have information about particular crimes in this case should report it to the ICE tip line or website.
Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites including the Federal Trade Commission ID theft website, www.ftc.gov/idtheft . Additional resources regarding identity theft can be found at http://www.ojp.usdoj.gov/ovc/pubs/I D_theft/idtheft.html ; http://www.ssa.gov/pubs/10064.html ; http://www.fbi.gov/about-us/investigate/cyber/identity_theft ; and http://www.irs.gov/privacy/article/0,,id=186436,00.html .
An indictment is merely a formal accusation. Defendants are presumed innocent unless proven guilty in a court of law.
$13.6 Million Forfeiture Settlement in Tobacco Industry Tax Evasion CaseRead the Press Release
SACRAMENTO, Calif. — House of Oxford Inc., of New Jersey, and its officers agreed to forfeit to the United States more than $13.6 million in cash, property, jewelry, artwork, and luxury automobiles that were acquired with proceeds of the sale of tobacco products in California in a manner that evaded the payment of the required state excise tax, announced United States Attorney Benjamin B. Wagner and the Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Joseph M. Riehl.
California imposes an excise tax, which is set annually, on non-cigarette tobacco products known as “other tobacco products” (OTP). The 2014-15 rate is 28.95 percent. California law defines OTP as all forms of cigars, smoking tobacco, chewing tobacco, snuff, and any other items made of or containing at least 50 percent tobacco. A large percentage of the proceeds of the excise tax are used to fund California’s early childhood development program, First 5 California.
According to court documents filed in the civil settlement, House of Oxford helped other companies evade the California OTP excise tax by (1) shipping OTP to California, but falsely billing the sales to other states, (2) shipping OTP to states located near California knowing that it would be shipped into California without the tax being paid, and (3) by shipping to addresses in California that were not licensed to receive tobacco by the California Board of Equalization.
“Today’s forfeiture is the latest result of the collaborative effort of federal and state investigators and prosecutors into systematic tax evasion in the distribution of tobacco products in California,” said U.S. Attorney Wagner. “We have obtained criminal convictions of 23 persons in this effort. The $13.6 million forfeiture announced today, one of the largest civil forfeitures ever in this district, serves as a further warning to anyone who would be tempted to defraud the State of California.”
“ATF is working diligently to investigate and disrupt tobacco traffickers. These investigations are arduous and require a long-term commitment from members of our task force and prosecution team,” stated ATF Special Agent in Charge Riehl.
“This recovering of tax dollars lost to the underground economy is crucial to leveling the playing field for California businesses. Tax fraud hurts all Californians, especially those who rely on the vital programs these taxes fund,” said Board of Equalization Chairman Jerome E. Horton.
This case is the product of a series of investigations by a specialized task force composed of the U.S. Attorney’s Office, the California Board of Equalization, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the California Attorney General’s office. For the last several years, these offices have supported a task force dedicated to combating the systemic problem of tobacco excise tax evasion in California. The BOE estimates the state will lose approximately $87.8 million in excise taxes for 2014 due to untaxed distributions of non-cigarette tobacco products. This is down from the BOE’s 2007 estimate of $94 million in annual losses, thanks in part to the enforcement efforts of this task force. Assistant United States Attorneys Michael D. Anderson and Kevin Khasigian prosecuted the case.
11 August 2014
Winnebago Man Sentenced for Forcibly Resisting a Police OfficerRead the Press Release
Richard Brownrigg, age 59 of Winnebago, Nebraska, was sentenced upon his conviction for forcibly resisting a Bureau of Indian Affairs Police Officer. Chief United States District Court Judge Laurie Smith Camp sentenced Brownrigg to serve five years of probation and ordered him to pay a special assessment of $100.
On November 2, 2013, a Winnebago BIA police officer responded to a disturbance call involving Brownrigg. As Brownrigg drove away from the scene, the officer followed and activated his emergency lights. Rather than stopping, Brownrigg drove away at a high rate of speed. When Brownrigg eventually stopped and the officer approached his vehicle, Brownrigg stated he was not going to let the officer arrest him. Brownrigg then attempted to drive away as the officer was standing by the vehicle, but the officer was able to dive into the vehicle and turn off the engine. Brownrigg also physically resisted the officer’s attempts to place handcuffs on him.
This case was investigated by the Bureau of Indian Affairs.
Vice-President of Investment Company Pleads Guilty in $21 Million Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Louis N. Gallo, III, 45, of Parkland, the Vice-President of Commodities Online LLC (COL), pled guilty on Friday, August 8, 2014, for his participation in a $21 million investment fraud scheme.
Gallo pled guilty before U.S. Magistrate Judge Jonathan Goodman to one count of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349. Sentencing for Gallo is scheduled for October 16, 2014.
According to court documents, Gallo conspired with co-defendants James C. Howard, III, Patricia S. Saa, Michael R. Casey and others to defraud individuals who invested in COL. From approximately January 2010 through April 2011, Howard and his co-conspirators used material false and fraudulent representations and material omissions to obtain over $21 million from over 700 investors.
According to court documents, Gallo and his co-conspirators used COL to sell COL ownership units, subscriptions to the COL website, and investments in purported transactions to buy and sell commodities. Via the COL website, Gallo and his co-conspirators offered investors the opportunity to participate in funding certain purported “pre-sold” commodities contracts. Gallo and his co-conspirators represented to investors that COL had a track record of profits. However, COL did not have profits. Any payments made to investors were made using funds received from newer investors.
Also according to court documents, Gallo and his co-conspirators also caused material misrepresentations to be made about the leaders of COL. After mid-2010, Howard stepped down as President of COL, and Casey, an attorney, became the President of COL. Gallo and his co-conspirators represented to investors that Howard was no longer managing COL, when in fact, Howard remained in charge. Also, Gallo and his co-conspirators did not disclose to investors that both Gallo and Howard had previously been convicted of federal felonies and that Gallo was still serving a term of supervised release.
According to court documents, Gallo and his co-conspirators also made material misrepresentations and omissions about the misuse of funds that COL received from investors. For example, Gallo caused at least $2.5 million to be diverted for himself and his family.
Also according to court documents, after COL was taken over by a court-appointed Receiver, Gallo participated in a similar scheme involving Global Solutions and Acquisitions LLC (GSA). Approximately 50 individuals invested about $1.1 million in GSA. About $200,000 was paid to investors using funds from other investors. The GSA investors lost about $900,000. As part of his plea agreement, Gallo agreed to pay restitution to the victims of both COL and GSA.
Mr. Ferrer commended the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorneys Ana Maria Martinez and John P. Gonsoulin.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Maryland Men Convicted for Roles in 2013 String of Armed Bank RobberiesRead the Press Release
ALEXANDRIA, Va. – James McNeal, 63, of Hyattsville, Maryland, and Alphonso Stoddard, 59, of Forest Heights, Maryland, were convicted by a federal jury of conspiracy to commit bank robbery, armed bank robbery and brandishing a firearm during a crime of violence.
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; and M. Douglas Scott, Arlington County Chief of Police, made the announcement after the verdict was accepted on Aug. 8, 2014 by U.S. District Judge T.S. Ellis, III.Stoddard was convicted of charges involving three separate bank robberies, and McNeal was convicted for his involvement in one bank robbery. Stoddard faces a mandatory life sentence because of prior convictions for armed bank robberies, and McNeal faces a mandatory minimum sentence of seven years and a maximum sentence of life in prison. The two defendants will be sentenced on November 7, 2014.
According to court records and evidence at trial, the FBI identified McNeal and Stoddard as possible suspects in a string of bank robberies in late 2013 and kept the men under close surveillance. On Dec. 27, 2013, McNeal and Stoddard were followed by law enforcement agents as they cased two banks in Arlington, Virginia. One of the banks the defendants were seen casing was a Wells Fargo branch on South George Mason Drive.
On Dec. 31, 2013, McNeal left his residence in Hyattsville and picked up Stoddard before returning to the Wells Fargo branch in Arlington. At approximately 1:15 p.m., Stoddard and a third man, James Link, 56, of Washington, D.C., entered the bank. Inside the bank, Link brandished a firearm while Stoddard removed approximately $47,000 in cash from teller drawers. The two men exited the bank and returned to the vehicle where McNeal was waiting. The FBI and Arlington officers arrested the defendants approximately one block away from the Wells Fargo branch. A handgun and cash were found in the vehicle.
A search of McNeal’s house led to the discovery of an additional firearm believed to be used in earlier bank robberies, cash and gloves. Stoddard admitted to his involvement in armed robberies at a Wells Fargo in Rockville, Maryland on Oct. 29, 2013 and the Bank of Georgetown in Vienna, Virginia on Oct. 30, 2013. Link admitted he was involved in the Bank of Georgetown robbery and an armed robbery at a Wells Fargo in Arlington on Nov. 25, 2013.
Link pleaded guilty to two counts of brandishing a firearm during a crime of violence and admitted his involvement in four bank robberies. He faces a mandatory minimum sentence of 32 years and a maximum sentence of life in prison when he is sentenced on Sept. 12, 2014.The investigation was conducted by the FBI’s Washington Field Office, with assistance from FBI’s Baltimore Division and the Arlington County and Fairfax County police departments. The U.S. Attorney’s Offices for the District of Columbia and the District of Maryland also provided assistance in the investigation. Assistant U.S. Attorney Adam B. Schwartz and Special Assistant U.S. Attorney Jennifer A. Clarke are prosecuting the case.
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-76.
Two Detroit Men Sentenced for Transporting and Distributing Heroin in HuntingtonRead the Press Release
Huntington, W.Va. – United States Attorney Booth Goodwin announced that two Detroit, Michigan men were sentenced to federal prison today for their roles in conspiracies to distribute heroin in the Huntington, West Virginia area. Daniel M. Flowers, 44, and Cecil Rice, 34, appeared before Chief Judge Robert C. Chambers who imposed the sentences.
Flowers previously pleaded guilty in May of 2014 to distributing heroin. Flowers admitted that between August of 2008 and April of 2013, he participated with others to transport heroin from Detroit to Huntington for distribution in Huntington and the surrounding area. Flowers and his co-conspirators used multiple residences around Huntington to store, prepare and distribute the heroin.
On April 10, 2013, a confidential informant (CI) working with law enforcement, contacted Flowers and arranged to buy some heroin. The CI subsequently met with Flowers at an apartment in the 1000 block of 12th Avenue in Huntington, where Flowers sold him heroin in exchange for $150.
The FBI Huntington Violent Crimes Drug Task Force and the Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution.
In the second case, Cecil Rice was sentenced for his role in the distribution of heroin shipped from Detroit to Huntington, Rice, who pleaded guilty in May of 2014 to possession with intent to distribute heroin, admitted that between August of 2008 and September of 2013, he participated in the transportation of heroin, cocaine base and oxycodone from Detroit to Huntington. Like Flowers, Rice and his co-conspirators used various residences in the Huntington area to store, prepare and distribute the illegal drugs.
On September 19, 2013, Rice was arrested after leaving a motel located on 16th Street in Huntington. When officers went to arrest Rice, they discovered two packs of heroin concealed in his mouth. Rice was in the process of selling the heroin at the time of his arrest. Officers also conducted a search of the motel room from which Rice had exited just prior to his arrest and found more heroin and cocaine base.
The FBI Huntington Violent Crimes Drug Task Force and the Huntington Police Department conducted this investigation with assistance from the Cabell County Sheriff’s Department. Assistant United States Attorney Joseph F. Adams also handled this prosecution.
These cases were prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of heroin and prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiates, including heroin, in communities across the Southern District.
Tuolumne County Man Sentenced to 19 Years and 7 Months in Prison for Sexual Exploitation of MinorsRead the Press Release
FRESNO, Calif. —Senior United States District Judge Anthony W. Ishii sentenced Curtis Benjamin Hults, 63, of Twain Harte, to 19 years and seven months in prison, to be followed by a lifetime term of supervised release, for four counts of sexual exploitation of a minor and one count of receipt of child pornography, United States Attorney Benjamin B. Wagner announced.
Hults admitted in a plea agreement that between May 1, 2008, and October 8, 2012, he created images of four different minors engaging in sexually explicit conduct, stored them on a digital camera, and then transferred them to a computer. Hults also downloaded from the Internet more than 600 images of minors engaged in sexually explicit conduct, some of whom were prepubescent and some of the images depicted violence.
Hults has been in custody as a danger to the community and flight risk since his initial court appearance on October 17, 2013. He pleaded guilty on June 23, 2014.
This case was the result of an investigation by the FBI, the Visalia Police Department, the Tulare County District Attorney’s Office, and the Tuolumne County Sheriff’s Office. Assistant United States Attorney David Gappa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet safety education.
Three Defendants Plead Guilty on the Lawman Gun Shop CaseRead the Press Release
SAN JUAN, Puerto Rico – María Del Carmen Rivera-Negrón, Julio Colón-Santiago, and Rivera Pagàn & Asociados, Inc., d/b/a The Lawman Gun Shop pled guilty today announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
On or about the 21st day of May, 2012, in the District of Puerto Rico, the defendants aiding and abetting others, did willfully and knowingly cause, without lawful authority, production of identification documents, authentication features, and false identification documents, to wit, a Commonwealth of Puerto Rico Concealed Carry Weapons Permit under Weapons Permit Number XX129, with the help of attorney and notary public Antonio Peluzzo-Perotin.
The Federal Bureau of Investigation (FBI) and the Puerto Rico Police Department (PRPD) are in charge of the investigation.
María Del Carmen Rivera-Negrón and Julio Colón-Santiago co-owned The Lawman Gun Shop, a federally licensed firearms (FFL) dealer. Using their positions, the defendants participated in a scheme to have Commonwealth of Puerto Rico Concealed Carry Weapons Permits issued without compliance with applicable law.
Defendants admit that they participated in the scheme for pecuniary gain and stipulated that the loss generated during the course of the scheme, which involved possession of five or more means of identification and involved over 250 victims, was greater than $1,000,000.
The defendants will request a sentence of five years of imprisonment while the United States may argue for a sentence of up to 12 years of imprisonment.
Defendants admitted that they used their special skills as owners of an armory and federally licensed firearms dealers in order to carry out the scheme. The Board of Directors of Rivera Pagàn & Asociados, Inc., d/b/a The Lawman Gun Shop also authorized a guilty plea on behalf of the Commonwealth of Puerto Rico corporation.
María Del Carmen Rivera-Negrón, Julio Colón-Santiago, and Rivera Pagàn & Asociados, Inc., d/b/a The Lawman Gun Shop admitted that the scheme permitted unqualified individuals to carry firearms without being properly vetted under the law thereby circumventing the statutory, judicial, and bureaucratic processes for obtaining a Puerto Rico Concealed Carry Weapons Permit.
The corporation known as The Lawman Gun Shop also plead guilty and will forfeit their federal firearms license and is now exposed to monetary fines of up to $250,000.
Sentencing hearings were scheduled for December 11, 2014. The case is being prosecuted by Assistant U.S. Attorneys José Capó-Iriarte and Luke Cass.
Stroudsburg Man Charged with Passing Counterfeit MoneyRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that a felony information has been filed against Calmen Stewart, Jr., age 23, of Stroudsburg, Pennsylvania. The information charges Stewart with conspiracy to pass counterfeit federal reserve notes at locations throughout the Middle District of Pennsylvania and elsewhere.
Ketsy Devis, age 24, Dominick Andino, age 24, and Ralph Randolph, age 36 were charged in related cases. Devis and Andino await sentencing. Randolph was sentenced on July 24, 2014 by U.S. District Court Judge Malachy E. Mannion to ten months incarceration followed by two years of supervised release.
Stewart could be imprisoned for a statutory maximum term of imprisonment of five years and fines in the amount of $250,000.
The case was jointly investigated by the United States Secret Service and the Dickson City Police Department.
Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
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.
Statement by Attorney General Holder on Recent Shooting Incident in Ferguson, MissouriRead the Press Release
Attorney General Eric Holder released the following statement Monday regarding the shooting incident that took place Saturday afternoon in Ferguson, Missouri:
“The shooting incident in Ferguson, Missouri this weekend deserves a fulsome review. In addition to the local investigation already underway, FBI agents from the St. Louis field office, working together with attorneys from the Justice Department’s Civil Rights Division and US Attorney's Office, have opened a concurrent, federal inquiry. The federal investigation will supplement, rather than supplant, the inquiry by local authorities. At every step, we will work with the local investigators, who should be prepared to complete a thorough, fair investigation in their own right. I will continue to receive regular updates on this matter in the coming days. Aggressively pursuing investigations such as this is critical for preserving trust between law enforcement and the communities they serve.”
Sheffield Lake Man Charged with Embezzling $2.9 MillionRead the Press Release
A Sheffield Lake man was charged with embezzling approximately $2.9 million from Medical Mutual, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio
Joseph F. Satava, III, age 69, was charged in a criminal information with one count of theft of embezzlement in connection with health case.
Satava embezzled approximately $2.9 million from his employer, Medical Mutual, between August 1997 and November 2013, according to the information.
Satava began working for Medical Mutual in 1971, and held the position of Manager of Credit and Collections for the past 20 years. In this capacity, he had the authority and managerial discretion to request and approve checks in amounts up to $5,000. During his tenure, Satava discovered a way to use this managerial authority to create reimbursement checks that he could then embezzle, steal, and convert, undetected, to his own personal use, according to the information.
To accomplish his embezzlement, Satava reviewed weekly printouts of the company’s accounts receivable trial balance statements to identify new companies that had signed contracts for insurance coverage. The weekly printouts included the amounts submitted by each company as the first payment for the insurance coverage. These payments were referred to as “binder payments.” Each binder payment was credited to the finance division’s “Binder Suspense Account.” At the end of each month, each company payment was then credited to the appropriate client-specific revenue account, according to information.
During most weeks, Satava selected between two and four companies from this printout that made binder payments under $5,000 and created a reimbursement check in the exact amount of each respective customer check submitted to the company. He caused the reimbursement check to be created by completing a company check reimbursement form. On the form, Satava listed an employee of the client company as payee, and requested payment in the amount of the company’s binder check. He stated on the form that insurance coverage had been denied as the reason for the requested reimbursement.
To conceal his embezzlement, Satava did not charge each reimbursement to the Binder Suspense Account. Instead, he charged the checks to an account that handled several billions of dollars of revenue each year. As such, the checks created by Satava were immaterial in amount relative to the volume of funds passing through this account, so the checks were not detected. Because the reimbursement checks were not charged against the account into which the binder payments were deposited, the coverage for each client company still went into effect, according to the information.
To negotiate the check, Satava forged the name of the payee appearing on the reimbursement check that he used without authorization. After he forged each check, he countersigned his own name beneath the forged name. Defendant used ATMs to deposit each check into his own personal bank account to avoid scrutiny from bank officials regarding the third party checks, according to the information.
Satava produced at least 1,382 reimbursement checks that he forged, countersigned, and deposited during his tenure as the manager of credit and collections, according to the information.
Satava used the embezzled funds to pay for living expenses that were otherwise beyond his means, such as furniture and other household items, his adult son’s personal expenses, a car loan, travel and personal vacations and a retirement home on Lake Erie, according to the information.
This case is being prosecuted by Assistant U.S. Attorneys Christos N. Georgalis and James Morford following an investigation by agents of the Federal Bureau of Investigation.
If convicted, the defendant’s sentence will be determined by the dourt after a review of factors unique to the case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Shannon Conley, Through Her Attorney, Files A Notice of DispositionRead the Press Release
DENVER – Shannon Conley, age 19, of Arvada, Colorado, has, through her attorney, filed a notice of disposition in her criminal case (14-CR-163-RM). A notice of disposition is generally filed by the defense to notify the court that an agreement between the prosecution and the defense has been reached, where the defendant has agreed to plead guilty. The details of that plea agreement cannot be made public until the change of plea hearing, which has not yet been scheduled. At the change of plea hearing, Conley will be given an opportunity to change her plea from not guilty to guilty.
Conley currently is charged in a one count Information with Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization.
No additional information is available regarding what Conley has agreed to plead guilty to or the details of that agreement.
Psychologist Sentenced in Manhattan Federal Court for Participation in Multi-Year No-Fault Automobile Insurance Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JAY SEITZ, a psychologist licensed to practice in the State of New York, was sentenced today in Manhattan federal court in connection with his participation in a multi-year, no-fault automobile insurance fraud scheme. SEITZ was sentenced to two years in prison by U.S. District Judge Sidney H. Stein. SEITZ was convicted in March following a six-day jury trial of one count of conspiracy to commit mail fraud and health care fraud, one count of mail fraud, and one count of health care fraud.
Manhattan U.S. Attorney Preet Bharara said: “Jay Seitz violated the ethical code he swore to uphold and committed fraud in pursuit of personal profit. With the sentence meted out today, his unscrupulous practices and flagrant violation of the law have now been justly punished.”
According to the Indictment filed in Manhattan federal court, other court documents, evidence introduced during trial and statements made at other court proceedings:
Between 2006 and 2008, SEITZ purported to provide psychological services to patients at medical clinics located in the Bronx and Brooklyn, New York. SEITZ signed treatment notes that described the diagnoses he purportedly made and the services he purportedly provided to patients treated at these clinics. These treatment notes, which often did not accurately reflect the psychological symptoms suffered by patients or the treatment they were provided, were used to generate claims that were submitted to no-fault insurance companies for reimbursement. These claims reflected that the psychological services for which reimbursement was sought were provided by SEITZ. In fact, SEITZ did not diagnose or treat any patients on whose behalf claims were submitted to no-fault insurance providers. Although the patients at the clinics with which SEITZ was associated sometimes received psychological screening and treatment, this treatment was provided by individuals who were not licensed psychologists or licensed social workers. In addition, the treatment duration and number of treatment sessions reflected on the claims forms often exceeded the actual duration of services provided or the number of sessions at which treatment was actually provided. No-fault insurance providers reimbursed over $3 million of claims submitted on behalf of two professional corporations associated with SEITZ, for patients purportedly, but not actually, treated by SEITZ.
In addition to the prison term, SEITZ, 62, of New York, New York, was sentenced to one year of supervised release. SEITZ was also ordered to pay restitution in the amount of $2,703,137.89 and forfeit $584,089.92 in assets.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation.
The case is being handled by the Office=s Violent and Organized Crime Unit. Assistant U.S. Attorneys Brian Blais and Kristy Greenberg are in charge of the prosecution.
Pompano Beach Resident Pleads Guilty and Is Sentenced for Illegally Trafficking in Marine LifeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Tracy Dunn, Special Agent in Charge, National Oceanic and Atmospheric Administration (NOAA), Office of Law Enforcement, announce that Eric Burman, 60, of Boca Raton, pled guilty and was sentenced today by Senior U.S. District Court Judge James Lawrence King to a term of three years of probation. Burman was also ordered to pay a fine of $250,000, the fine to be transferred upon receipt to the Magnuson-Stevens Fishery Conservation and Management Act Fund administered by the Department of Commerce, National Oceanic & Atmospheric Administration, pursuant to the authority of Title 16, United States Code, Section 1861(e).
Burman was charged with a one count information with conspiracy to violate the federal Lacey Act, by transporting, selling, receiving, acquiring, and purchasing wildlife, that is Florida spiny lobster (Panulirus argus) with a fair market value in excess of $350.00, knowing that said wildlife was taken, possessed, transported, and sold in foreign commerce, in violation of the laws and regulations of the State of Florida, all in violation of Title 16, United States Code, Sections 3372(a)(2)(A), 3373(d)(1) and (2).
According to statements in court, and the court pleadings, at the relevant times, Burman was President and the sole Director of a Florida corporation with its principal place of business in Pompano Beach. Burman, through the business entity, was engaged in the wholesale commercial seafood industry, including the export of live Florida spiny lobster to the seafood market in China.
Burman admitted that during August and September 2010, he and a co-conspirator purchased spiny lobster from harvesters in Monroe County without creating and providing to the harvesters and the Florida Fish & Wildlife Conservation Commission, trip tickets reflecting the transactions. Thereafter, a co-conspirator of Burman’s caused the lobster to be transported to the corporate business premises in Pompano Beach for packing and shipping in foreign commerce. Burman agreed to allow the co-conspirator to package, mark, and ship the spiny lobster under the corporate entity’s name and through the corporation’s shipping agent. The lobster was ultimately transported from the business in Pompano Beach to a commercial airfreight carrier at Miami International Airport and exported to Hong Kong, China. The charges included a series of “overt acts”, describing multiple instances when specific shipments of spiny lobster were made to China by air freight, and the unlicensed and undocumented purchase of spiny lobsters in the Florida Keys.
Mr. Ferrer commended the investigative efforts NOAA Office of Law Enforcement and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Islamorada Field Office. This matter is being prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald and Antonia Barnes.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Philadelphia Man Pleads Guilty to Making False Statements to BanksRead the Press Release
PHILADELPHIA - Matthew Amato, 31, of Broomall, PA, pleaded guilty today to one count of making false statements to banks. A sentencing hearing is scheduled for November 12, 2014. Amato admitted today that between July 11, 2005 and August 9, 2005, he knowingly made and caused to be made false statements to Wachovia Bank, PNC Bank, and Sun National Bank for the purpose of influencing the actions of the banks upon lines of credit for which he had applied. Amato falsely claimed to be the sole proprietor and Chief Executive Officer of Chaka Fattah, Jr. & Associates, an existing business entity which previously had earned revenue, and falsely claimed that he would use the proceeds of the commercial loans for the working capital and business purposes of CFJA, as required under the terms of the loans.
Amato faces a maximum possible sentence of 30 years in prison, up to five years of supervised release, a fine of up to $250,000, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service is being prosecuted by Assistant United States Attorney Paul L. Gray.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Parkville Man Convicted in Plot to Export Industrial Products and Services to IranRead the Press Release
Conspired to Violate the U.S. Embargo Against Iran
Greenbelt, Maryland - A federal jury convicted Ali Saboonchi, age 34, a U.S. citizen residing in Parkville, Maryland, today of conspiracy and seven counts of exporting American manufactured industrial products and services to Iran.The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
"This case and trial gave the public a rare view into the lengths Mr. Saboonchi and others like him will go to break the law of this country and aid our foreign adversaries," said Steve Vogt, Special Agent in Charge of the FBI Baltimore Division. “We work every day to keep what may seem like benign technology and ideas created here in America from being used against us. These illegal export cases happen more often than the general public gets to see, and it will impact all of us if these conspirators aren't caught and stopped."
The International Emergency Economic Powers Act authorizes the President of the United States to impose economic sanctions on a foreign country when the President declares a national emergency. In 1995, the President issued a series of executive orders declaring that the actions and policies of the government of Iran constituted a national emergency, and imposed economic sanctions against Iran, to include a trade embargo (the Iran Trade Embargo). In order to implement the Iran Trade Embargo, the U.S. Department of the Treasury promulgated regulations that prohibit the export, sale or supply to Iran of any goods or services from the United States without prior authorization.
According to evidence presented during the two week trial, from November 2009 to the present, Saboonchi conspired with others to evade the Iran Trade Embargo by exporting American manufactured industrial goods and services to Iranian businesses. A co-conspirator, located in Iran, had Saboonchi in Maryland create and operate Ace Electric Company to obtain goods to be sent to Iran. The co-conspirator, who operated businesses in Tehran, Iran and the United Arab Emirates (UAE), solicited purchase orders and business from customers in Iran for industrial parts and components manufactured in America, including:
- two cyclone separators, which are used in pipelines to separate impurities such as sand from liquids; - six thermocouples, which are used to measure temperatures of liquids and gasses in industrial applications in the chemical and petrochemical fields; - 10 stainless steel filter elements, which are used primarily in the oil and gas industry and can be used in water plants, hydrocarbon plants and nuclear plants; - four bypass filters; - three flow meters, which are used primarily in industrial applications to measure the flow of water but could be adjusted to measure other liquids and gasses; - three actuator springs, which are used to control the flow rate of a liquid; - numerous industrial parts, including hydraulic valves and connectors; and
- liquid pumps and valves, which have oil, gas, energy, aerospace and defense applications.Trial evidence showed that Saboonchi obtained price quotes and paid for these items, and took delivery of most of the goods, which he then shipped to co-conspirators in UAE and, in at least one case, China. The co-conspirator would repay Saboonchi for the goods and further arrange for the entities in the UAE and China to send the goods on to him and his customers in Iran. Saboonchi did not obtain authorization to export the products.
Saboonchi faces a maximum sentence of 20 years in prison for the conspiracy and on each of seven counts for illegal export to an embargoed country. U.S. District Judge Paul W. Grimm scheduled sentencing for February 2, 2015, at 1:00 p.m.
Co-defendants Arash Rashti Mohammad, and Mehdi Mohammadi, are citizens and residents of Iran. They were indicted in 2013, along with Saboonchi, on charges arising from the conspiracy, and are currently fugitives.
United States Attorney Rod J. Rosenstein praised the FBI and HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Christine Manuelian and Kristi O’Malley, who are prosecuting the case.
Orangevale Man Sentenced for Child Pornography CrimeRead the Press Release
SACRAMENTO, Calif. — Anthony Nail, 26, of Orangevale, was sentenced on Friday by United States District Judge Garland E. Burrell Jr. to five years and 10 months in prison for receipt and distribution of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, between December 2011 and April 2012, Nail used a file sharing program to download and share child pornography over the Internet. Nail has been in custody since he pleaded guilty on March 21, 2014.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Matthew G. Morris prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet safety.
Ohio Prisoner Sentenced for Role in Detroit/west Virginia Drug ConspiracyRead the Press Release
Defendant Managed Drug Conspiracy While Imprisoned in Ohio
Charleston, W.Va. – United States Attorney Booth Goodwin announced that Mack Brooks, age 41, of Detroit, Michigan, was sentenced today to the maximum statutory sentence of 20 years imprisonment for his role in a conspiracy to distribute illegal drugs. Brooks was previously convicted of conspiracy to distribute oxycodone and oxymorphone, highly addictive pain medications, following a three-day jury trial in July of 2013. During the course of the conspiracy that spanned more than two years, Brooks, while incarcerated in Ohio for a previous drug conviction, arranged the delivery of prescription pills from Detroit to West Virginia. Trial testimony established that Brooks and his organization were responsible for distributing over $1,000,000 worth of illegal pills in southern West Virginia. The sentence imposed today will run consecutive to the sentence Brooks is serving in Ohio.The successful prosecution of Brooks and others in his organization was due to the cooperative efforts of agents of the Drug Enforcement Administration and the Wood County Sheriff’s Department.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
North Carolina Man Convicted in Connection with Sex Trafficking EnterpriseRead the Press Release
A federal jury returned a verdict today convicting Shahid Hassan Muslim, aka “Sharp,” of two counts of sex trafficking, one count of kidnapping, one count of production of child pornography, one count of witness tampering and five counts of promoting a prostitution business enterprise. The verdict was announced by Acting Assistant Attorney General Molly Moran for the Civil Rights Division, U.S. Attorney Anne M. Tompkins for the Western District of North Carolina, Special Agent in Charge John A. Strong of the Federal Bureau of Investigation’s Charlotte Division and Special Agent in Charge Brock Nicholson of ICE’s Homeland Security Investigations Atlanta Division.
Evidence presented during the four-day trial, including the testimony of five victims, revealed that Muslim had operated an extensive sex trafficking enterprise in Charlotte, North Carolina and other cities between at least 2010 and the time of his arrest in November 2013. Muslim recruited young women and girls from the Charlotte area, some as young as 16 years old, and advertised them for prostitution on the internet. He recruited them using the idea that they would be part of a family when they had none. Muslim demanded all of their money and used extreme violence to control the young women and girls. As one witness explained, Muslim never hit the victims in the face because it would damage his “merchandise.”
The evidence further showed that Muslim kidnapped one of the victims and brutally beat her after she left and reported him to the police. Witnesses testified that he lured her to a hotel pretending to be a prostitution customer. When she arrived, Muslim attacked her while dressed in black and wearing a mask in the shape of a skull. He shoved her into a trunk and had her transported to his house, where he handcuffed her and bound her feet and continued to beat her. Muslim then put the victim in the shower, while still handcuffed, turned on the cold water, and left her overnight. Ultimately, she managed to escape and flee to a neighbor’s home for help.
Muslim’s control over the women and girls extended to when he was in custody on both state and federal charges. He convinced the victim involved in the kidnapping to submit a false affidavit declaring his innocence to state authorities, which resulted in the dismissal of those charges. He further harassed a victim in the federal case to submit a false affidavit taking ownership of a sexually explicit video that he produced of her when she was only 16 years old.
“This defendant targeted vulnerable young women and girls and exploited them for his own profit, using a brutal scheme of power and control” said Acting Assistant Attorney General Moran. “This disregard of the rights and dignity of some of the most vulnerable members of our community is intolerable in a nation founded on freedom and individual rights, and the Civil Rights Division is committed to bringing human traffickers to justice.”
“Muslim preyed upon young and vulnerable women, and with the promise of a better life, he lured them into his criminal enterprise,” said U.S. Attorney Tompkins. “Once in, Muslim used unspeakable violence to control and exploit these women and girls for his financial gain. We will continue to aggressively prosecute those who engage in this illegal business that dehumanizes women and strips them of their dignity.”
“Shahid Hassan Muslim promised his victims the loving support of a family, instead he controlled them through beatings, fear, and intimidation,” said Special Agent in Charge Strong. “Sex trafficking victims are traumatized and may be unsure of where to turn for help. The FBI devotes a significant amount of resources to recovery efforts and to hold those accountable who sacrifice another person’s civil rights and freedom for their own profit.”
“This defendant is one of the most violent and inhumane human traffickers we have ever encountered in North Carolina,” said Acting Special Agent in Charge Ryan L. Spradlin of ICE Homeland Security Investigations in Atlanta. “Thankfully, by working with the FBI we were able to get this monster off of the streets and begin the process of repairing the damage he has inflicted on these victims’ lives.”
After deliberating for two and a half hours the jury found the defendant guilty on all counts. The defendant faces a statutory maximum sentence of life in prison.
This case was investigated by the Federal Bureau of Investigation and Homeland Security Investigations, with assistance from the Charlotte-Mecklenburg County Police Department. It is being prosecuted by Assistant U.S. Attorney Kimlani M. Ford for the Western District of North Carolina and Trial Attorney Benjamin J. Hawk of the Civil Rights Division’s Human Trafficking Prosecution Unit.
North Carolina Man Convicted in Connection with Sex Trafficking EnterpriseRead the Press Release
CHARLOTTE, N.C. – A federal jury returned a verdict today convicting Shahid Hassan Muslim, aka “Sharp,” of two counts of sex trafficking, one count of kidnapping, one count of production of child pornography, one count of witness tampering and five counts of promoting a prostitution business enterprise. The verdict was announced by Acting Assistant Attorney General Molly Moran for the Civil Rights Division, U.S. Attorney Anne M. Tompkins for the Western District of North Carolina, Special Agent in Charge John A. Strong of the Federal Bureau of Investigation’s Charlotte Division and Special Agent in Charge Brock Nicholson of ICE’s Homeland Security Investigations Atlanta Division.
Evidence presented during the four-day trial, including the testimony of five victims, revealed that Muslim had operated an extensive sex trafficking enterprise in Charlotte, North Carolina and other cities between at least 2010 and the time of his arrest in November 2013. Muslim recruited young women and girls from the Charlotte area, some as young as 16 years old, and advertised them for prostitution on the internet. He recruited them using the idea that they would be part of a family when they had none. Muslim demanded all of their money and used extreme violence to control the young women and girls. As one witness explained, Muslim never hit the victims in the face because it would damage his “merchandise.”
The evidence further showed that Muslim kidnapped one of the victims and brutally beat her after she left and reported him to the police. Witnesses testified that he lured her to a hotel pretending to be a prostitution customer. When she arrived, Muslim attacked her while dressed in black and wearing a mask in the shape of a skull. He shoved her into a trunk and had her transported to his house, where he handcuffed her and bound her feet and continued to beat her. Muslim then put the victim in the shower, while still handcuffed, turned on the cold water, and left her overnight. Ultimately, she managed to escape and flee to a neighbor’s home for help.
Muslim’s control over the women and girls extended to when he was in custody on both state and federal charges. He convinced the victim involved in the kidnapping to submit a false affidavit declaring his innocence to state authorities, which resulted in the dismissal of those charges. He further harassed a victim in the federal case to submit a false affidavit taking ownership of a sexually explicit video that he produced of her when she was only 16 years old.
“This defendant targeted vulnerable young women and girls and exploited them for his own profit, using a brutal scheme of power and control” said Acting Assistant Attorney General Moran. “This disregard of the rights and dignity of some of the most vulnerable members of our community is intolerable in a nation founded on freedom and individual rights, and the Civil Rights Division is committed to bringing human traffickers to justice.”
“Muslim preyed upon young and vulnerable women, and with the promise of a better life, he lured them into his criminal enterprise,” said U.S. Attorney Tompkins. “Once in, Muslim used unspeakable violence to control and exploit these women and girls for his financial gain. We will continue to aggressively prosecute those who engage in this illegal business that dehumanizes women and strips them of their dignity.”
“Shahid Hassan Muslim promised his victims the loving support of a family, instead he controlled them through beatings, fear, and intimidation,” said Special Agent in Charge Strong. “Sex trafficking victims are traumatized and may be unsure of where to turn for help. The FBI devotes a significant amount of resources to recovery efforts and to hold those accountable who sacrifice another person’s civil rights and freedom for their own profit.”
“This defendant is one of the most violent and inhumane human traffickers we have ever encountered in North Carolina,” said Acting Special Agent in Charge Ryan L. Spradlin of ICE Homeland Security Investigations in Atlanta. “Thankfully, by working with the FBI we were able to get this monster off of the streets and begin the process of repairing the damage he has inflicted on these victims’ lives.”
After deliberating for two and a half hours the jury found the defendant guilty on all counts. The defendant faces a statutory maximum sentence of life in prison.
This case was investigated by the Federal Bureau of Investigation and Homeland Security Investigations, with assistance from the Charlotte-Mecklenburg County Police Department. It is being prosecuted by Assistant U.S. Attorney Kimlani M. Ford for the Western District of North Carolina and Trial Attorney Benjamin J. Hawk of the Civil Rights Division’s Human Trafficking Prosecution Unit.
North Carolina Man Convicted in Connection with Sex Trafficking EnterpriseRead the Press Release
CHARLOTTE, N.C. – A federal jury returned a verdict today convicting Shahid Hassan Muslim, aka “Sharp,” of two counts of sex trafficking, one count of kidnapping, one count of production of child pornography, one count of witness tampering and five counts of promoting a prostitution business enterprise. The verdict was announced by Acting Assistant Attorney General Molly Moran for the Civil Rights Division, U.S. Attorney Anne M. Tompkins for the Western District of North Carolina, Special Agent in Charge John A. Strong of the Federal Bureau of Investigation’s Charlotte Division and Special Agent in Charge Brock Nicholson of ICE’s Homeland Security Investigations Atlanta Division.
Evidence presented during the four-day trial, including the testimony of five victims, revealed that Muslim had operated an extensive sex trafficking enterprise in Charlotte, North Carolina and other cities between at least 2010 and the time of his arrest in November 2013. Muslim recruited young women and girls from the Charlotte area, some as young as 16 years old, and advertised them for prostitution on the internet. He recruited them using the idea that they would be part of a family when they had none. Muslim demanded all of their money and used extreme violence to control the young women and girls. As one witness explained, Muslim never hit the victims in the face because it would damage his “merchandise.”
The evidence further showed that Muslim kidnapped one of the victims and brutally beat her after she left and reported him to the police. Witnesses testified that he lured her to a hotel pretending to be a prostitution customer. When she arrived, Muslim attacked her while dressed in black and wearing a mask in the shape of a skull. He shoved her into a trunk and had her transported to his house, where he handcuffed her and bound her feet and continued to beat her. Muslim then put the victim in the shower, while still handcuffed, turned on the cold water, and left her overnight. Ultimately, she managed to escape and flee to a neighbor’s home for help.
Muslim’s control over the women and girls extended to when he was in custody on both state and federal charges. He convinced the victim involved in the kidnapping to submit a false affidavit declaring his innocence to state authorities, which resulted in the dismissal of those charges. He further harassed a victim in the federal case to submit a false affidavit taking ownership of a sexually explicit video that he produced of her when she was only 16 years old.
“This defendant targeted vulnerable young women and girls and exploited them for his own profit, using a brutal scheme of power and control” said Acting Assistant Attorney General Moran. “This disregard of the rights and dignity of some of the most vulnerable members of our community is intolerable in a nation founded on freedom and individual rights, and the Civil Rights Division is committed to bringing human traffickers to justice.”
“Muslim preyed upon young and vulnerable women, and with the promise of a better life, he lured them into his criminal enterprise,” said U.S. Attorney Tompkins. “Once in, Muslim used unspeakable violence to control and exploit these women and girls for his financial gain. We will continue to aggressively prosecute those who engage in this illegal business that dehumanizes women and strips them of their dignity.”
“Shahid Hassan Muslim promised his victims the loving support of a family, instead he controlled them through beatings, fear, and intimidation,” said Special Agent in Charge Strong. “Sex trafficking victims are traumatized and may be unsure of where to turn for help. The FBI devotes a significant amount of resources to recovery efforts and to hold those accountable who sacrifice another person’s civil rights and freedom for their own profit.”
“This defendant is one of the most violent and inhumane human traffickers we have ever encountered in North Carolina,” said Acting Special Agent in Charge Ryan L. Spradlin of ICE Homeland Security Investigations in Atlanta. “Thankfully, by working with the FBI we were able to get this monster off of the streets and begin the process of repairing the damage he has inflicted on these victims’ lives.”
After deliberating for two and a half hours the jury found the defendant guilty on all counts. The defendant faces a statutory maximum sentence of life in prison.
This case was investigated by the Federal Bureau of Investigation and Homeland Security Investigations, with assistance from the Charlotte-Mecklenburg County Police Department. It is being prosecuted by Assistant U.S. Attorney Kimlani M. Ford for the Western District of North Carolina and Trial Attorney Benjamin J. Hawk of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Nanny Admits to Stealing over $430,000 from A Montgomery County CoupleRead the Press Release
Greenbelt, Maryland – Kadiatu Sahid Kamara, age 50, of Gaithersburg, Maryland pleaded guilty today to mail fraud and aggravated identity theft, arising from a two year scheme in which she wrote herself approximately 118 checks from her employers’ bank account.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kathy A. Michalko of the United States Secret Service - Washington Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to her plea agreement, Kamara was a nanny caring for the children of a married couple living in Montgomery County. Kamara had access to checks linked to the victims’ money market account, though she had never been authorized to write checks from this account. From May 2011 to May 2013, Kamara wrote herself approximately 118 checks from the victims’ money market account, totaling approximately $431,542. She forged the signature of one of the victims on each check, and deposited the checks into her own bank account. Kamara used some of the money to buy a house in Africa, to send money transfers, and to play games at a casino in Charles Town, West Virginia.Kamara faces a maximum sentence of 20 years in prison for mail fraud and a mandatory minimum of two years in prison consecutive to any other sentence imposed. Kamara has agreed to forfeit and pay restitution of $431,542. U.S. District Judge George J. Hazel scheduled sentencing for October 14, 2014.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service and Montgomery County Police Department for their work in the investigation and thanked Assistant U.S. Attorney Thomas P. Windom, who is prosecuting the case.Multiple Sentences Handed Down in Progreso Bribery SchemeRead the Press Release
HOUSTON – The former mayor of Progreso and three others have been sentenced for their convictions related a bribery scheme that permeated the town of Progreso and the local school board, announced United States Attorney Kenneth Magidson.
Omar, Jose and Michael Vela were originally charged along with Jesus Bustos based on their participation in a scheme to create a “pay to play” public contracting system in Progreso. The Velas all pleaded guilty to conspiracy and bribery concerning programs receiving federal funds, while Bustos, 58, pleaded guilty to conspiracy. In a separate, but related case, Orlando Vela was convicted of theft from a program receiving federal funds.
Michael, 30, Omar, 36, and Orlando, 34, are brothers and Jose, 65, is their father. Omar was the mayor of Progreso at the time of the criminal behavior. Michael was the president of the Progreso Independent School District Board (PISD) of Trustees, Orlando was employed by PISD as a risk manager and Jose was PISD’s director of maintenance and transportation.
Today, U.S. District Judge U.S. District Judge David Hittner sentenced Jose Vela to 120 months for the bribery concerning federally-funded programs and a consecutive 31 months for the conspiracy for a total of 151 months in federal prison. Omar and Michael Vela will serve 121 and 71 months, respectively, while Orlando received a 10-month-term. They will all also serve three years of supervised release. In addition, Jose Vela was ordered to pay a $10,000 fine and forfeit $300,000. Omar and Michael Vela were ordered to forfeit $314,000 and $300,000, respectfully, while Orlando was ordered to pay restitution in the amount of $12,874.42.
Bustos will be sentenced Aug. 27, 2014.
From 2004 through 2013, PISD received more than $1 million per year in federal program grants and funds from the U.S. Department of Education. In order to obtain contracts from PISD or from the City of Progreso, contractors were required to pay bribes.
The Velas were able to extract bribes from contractors as a result of their political control of Progreso and PISD. As government officials, Michael and Omar had a level of control over local government. In addition, Jose Vela controlled the PISD School Board by rewarding board members who voted as he directed with bribe money. Through this control over the PISD Board, Jose Vela caused contracts with PISD to be awarded to contractors who were willing to pay him bribes and kickbacks in return. Omar and Michael Vela assisted their father by gathering bribe payments from contractors and delivering the payments to him. They were then given a portion of those monies.
In total, Jose, Omar and Michael extracted more than $300,000 in bribe payments.
Bustos, a local architect, admitted that from 2004 through 2013, he paid bribes and kickbacks to obtain architectural contracts for his architectural firm IDEA Group LLC on public projects in the area. These included the Mario Ybarra Elementary School Construction project in Weslaco and West Elementary School, Fine Arts Center, North Elementary School and the Science and Technology building in Progreso.
In addition, from April 2009 to December 2012, Omar Vela instructed the owner of a plumbing and electrical supply company to provide fraudulent invoices to PISD and the City of Progreso for products they did not provide. When the invoices were paid, the owner returned the funds to Vela, resulting in more than $14,000 in kickbacks.
In a separate, but related case, Orlando Vela admitted he was responsible for directing and managing the school district’s risk management, loss control and safety programs. On May 11, 2012, he formed a company called Borderline Office Supplies which purported to be in the business of supplying office and janitorial products to school districts.
Between May 2012 and March 2013, Orlando Vela submitted invoices to PISD for products that Borderline did not actually supply to PISD. The payments on the fraudulent invoices were approved by PISD’s business manager, Orlando Vela’s wife, and totaled $12,874.42.
All were taken into custody following the sentences today, where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the FBI. Assistant United States Attorney Robert S. Johnson is prosecuting the case.
Mexican National Living in Bellevue Sentenced to Prison for Drug ChargeRead the Press Release
BOISE – Esteban Villegas-Gamez, 39, a Mexican national living in Bellevue, Idaho, was sentenced to 46 months in prison followed by three years of supervised release for distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge sentenced Villegas-Gamez at the federal courthouse in Boise. Villegas-Gamez pleaded guilty to the charge on May 19, 2014.
According to the plea agreement, Villegas-Gamez admitted he sold methamphetamine and firearms to a person assisting law enforcement as a confidential informant. Villegas-Gamez sold the informant methamphetamine and firearms on numerous occasions beginning in November 2013 until January 2014. Villegas-Gamez admitted that the combined total he sold the informant during the different transactions was in excess of 50 grams of methamphetamine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; and Blaine County Narcotics Enforcement Team. Other agencies that assisted with the investigation include the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Idaho State Police. The Blaine County Narcotics Enforcement Team includes the Blaine County Sheriff’s Office, Sun Valley Police Department, Hailey Police Department, Ketchum Police Department, and Bellevue Marshal’s Office.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Marion Man Sentenced on Plea of Guilty to Possessing Firearms and Ammunition as an Unlawful Drug UserRead the Press Release
A man who possessed more than twenty firearms, including at least six military style assault rifles; thousands of rounds ammunition; and about 90 high capacity magazines, as an unlawful user of marijuana, was sentenced today to serve nearly four years in federal prison.
Clint Allen Hughes, 33, from 1165 4th Avenue, Marion, Iowa, received the prison term after a March 17, 2014, guilty plea to being an unlawful user of controlled substances in possession of firearms and ammunition.
Evidence presented at sentencing today showed the firearms and ammunition were seized following a search Hughes’s apartment by the Marion, Iowa, Police Department in August 2013. At that time, Hughes was determined to be an unlawful user of marijuana.
Hughes was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Hughes was sentenced to 46 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
In sentencing Hughes, Judge Reade noted Hughes had a 20 year history of substance abuse and expressed displeasure that he had violated pretrial supervision by repeatedly testing positive for marijuana and falsely denying he continued to use the drug. Judge Reade also expressed concern about statements Hughes made to a Marion Police Sergeant on the day his apartment was searched, suggesting he was a survivalist and had another hidden location where he stored more guns.
Hughes is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant U.S. Attorney Richard L. Murphy and investigated by the Marion Police Dept. and the Bureau of Alcohol, Tobacco, and Firearms.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 14-CR-00010-LRR.Man Sentenced in Wichita Mortgage Fraud CaseRead the Press Release
WICHITA, KAN. A Wichita man was sentenced Monday to six years in federal prison for mortgage fraud, U.S. Attorney Barry Grissom said. He also was ordered to pay more than $250,000 in restitution.
Manjur Alam, 47, Wichita, Kan., pleaded guilty to one count of conspiracy to commit wire fraud and bank fraud. In his plea, he admitted he led co-conspirators in a scheme to submit mortgage loan applications containing false statements, thereby defrauding Fannie Mae and Freddie Mac and the United States Department of Housing and Urban Development.
In some cases, Alam submitted false verification of rent for nominal buyers. In other cases he submitted a false letter of credit for nominal buyers. In each loan, Alam and the co-conspirators falsely represented that the homes would be a primary residence. In truth, they did not intend to live in the homes.
U.S. District Judge Monti L Belot determined the actual loss totaled more than $485,000. The judge also noted that at the time of the crime Alam was on federal probation for a similar offense and his realtor license had been suspended.
Co-defendants included:
Christopher Ginyard, 28, Wichita, who was sentenced to two years supervised release and $40,000 restitution.
Henry Pearson, Jr., 29, Wichita, who was sentenced to two years supervised release and $56,000 restitution.
Henry Pearson, Sr., Wichita, who was sentenced to two years supervised release and $55,180 restitution.
Bruce Dykes, 46, Wichita, who was sentenced to two years supervised release and $14,872 restitution.
Janice Young, 27, Wichita, who was sentenced to five years supervised release and $60,332 restitution.
Steven Pelz, 40, Wichita, Kan., was sentenced Monday to two years federal probation and $31,924 restitution.Grissom commended the Department of Housing and Urban Development, the Federal Housing Finance Agency - OIG, the Internal Revenue Service and Assistant U.S. Attorney Aaron Smith for their work on the case.
Man Charged with Assault, Malicious Mischief, and Threats at Gettysburg National ParkRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Gary L. DuRocher, 41, no fixed address, was charged in a Criminal Complaint following a series of incident at the Gettysburg National Military Park on Friday night, August 8, 2014.
According to United States Attorney Peter Smith, DuRocher is charged with assault and malicious mischief within the special jurisdiction of the United States for allegedly starting a fire that damaged property in the Park and making a threat of harm to another person. The Complaint was filed by a Gettysburg Park Ranger. If convicted of all offenses, DuRocher faces 11 years in prison and fines of more than $500,000.
DuRocher was taken into custody after the incidents and made an initial appearance before U.S. Magistrate Judge Susan E. Schwab in Harrisburg today. A preliminary hearing on the complaint is scheduled for August 21, 2014. Magistrate Judge Schwab granted the Government’s motion to detain DuRocher pending that hearing because of his risk of flight and danger to the community.
Law enforcement officers of the National Park Service, Cumberland Township, Gettysburg Borough, McSherrystown Borough, Pennsylvania State Police and Maryland State Police, as well as fire and emergency response personnel from around the Gettysburg area participated in the investigation. The case is being prosecuted by Assistant United States Attorney James T. Clancy.
Madera Man Sentenced TO 11 Years AND 3 Months IN Prison for Child PornographyRead the Press Release
FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced Aaron Lewis Gaudinier, 50, of Madera, to 11 years and three months in prison, to be followed by 15 years of supervised release, for receipt and distribution of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, between December 14, 2011, and February 4, 2012, Gaudinier received and distributed more than 600 images of minors engaged in sexually explicit conduct. Some images were of prepubescent minors and some depicted violence. Gaudinier has been detained as a danger to the community and flight risk since his initial appearance on February 15, 2012; he pleaded guilty on May 5, 2014.
“Those who trade child pornography over the Internet and use peer-to-peer file sharing technology, mistakenly believe cyberspace shields them from detection by law enforcement,” said Nick Annan, acting special agent in charge for Homeland Security Investigations in San Francisco. “However, as this sentence makes clear, those who use the Internet to exploit children should be on notice, HSI, in collaboration with its state and local partners, is using every tool at its disposal to identify these online predators and bring them to justice - whether they are around the block or around the world.”
This case is the result of an investigation by the Central California Internet Crimes Against Children Task Force, specifically the Madera and Fresno County Sheriff’s Offices, the Tulare Police Department, and the Fresno office of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney David Gappa prosecuted the case.
It was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet safety education.
MS-13 Gang Member Sentenced to 60 Months in Prison for Obstruction of Child Sex Trafficking LawsRead the Press Release
Victor Manuel Contreras, 29, of Manassas, Virginia, was sentenced to serve 60 months in prison, followed by five years of supervised release, for obstructing and interfering with the enforcement of federal child sex trafficking laws.
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 and Special Agent in Charge Clark E. Settle of U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) made the announcement. The sentence was imposed by U.S. District Judge Leonie M. Brinkema of the Eastern District of Virginia.
According to court documents and statements made at his plea hearing, in July 2011, Contreras engaged in chats via Facebook with a minor female. In those chats, she indicated a desire to run away from home, and Contreras told her that he would help her if she did so. Once the girl ran away from home, Contreras arranged for her to stay with other MS-13 gang members, who subsequently coerced her into prostitution. When law enforcement officers interviewed Contreras during their search for the girl, Contreras lied about his relationship with her, and then called other MS-13 gang members to warn them that law enforcement officers were looking for her.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc . For more information about Internet safety education, please visit www.justice.gov/psc and click on the “resources” tab on the left of the page.
The case was investigated by HSI, and prosecuted by Trial Attorney Alicia Yass of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Mary K. Daly of the Eastern District of Virginia.MS-13 Gang Member Sentenced to 60_Months in Prison for Obstruction of Child Sex Trafficking LawsRead the Press Release
WASHINGTON – Victor Manuel Contreras, 29, of Manassas, Virginia, was sentenced to serve 60 months in prison, followed by five years of supervised release, for obstructing and interfering with the enforcement of federal child sex trafficking laws.
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, and Special Agent in Charge Clark E. Settle of U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) made the announcement. The sentence was imposed by U.S. District Judge Leonie M. Brinkema of the Eastern District of Virginia.
According to court documents and statements made at his plea hearing, in July 2011, Contreras engaged in chats via Facebook with a minor female. In those chats, she indicated a desire to run away from home, and Contreras told her that he would help her if she did so. Once the girl ran away from home, Contreras arranged for her to stay with other MS-13 gang members, who subsequently coerced her into prostitution. When law enforcement officers interviewed Contreras during their search for the girl, Contreras lied about his relationship with her, and then called other MS-13 gang members to warn them that law enforcement officers were looking for her.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “resources” tab on the left of the page.
The case was investigated by HSI, and prosecuted by Trial Attorney Alicia Yass of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Mary K. Daly of the Eastern District of Virginia.
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Lawyer and Three Others Charged in Manhattan Federal Court with Scheme to Obtain Immigration Visas Based on Fraudulent Advanced Degree DiplomasRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Cheryl Garcia, Special Agent-in-Charge of the United States Department of Labor, Office of Inspector General (“DOL-OIG”) and James T. Hayes, Jr., the Special Agent in Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); announced today federal charges against RICHARD KASSEL, an immigration lawyer, and three others, in a scheme to obtain immigration visas by submitting fraudulent diplomas and transcripts representing that aliens had earned advanced degrees that they did not obtain from schools they did not attend.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, the defendants, including attorney Richard Kassel, cheated the system by engaging in a scheme to forge fraudulent diplomas and transcripts in order to obtain employment-based visas intended for professionals who had legitimately earned advanced degrees. Work visas must be earned not churned out if the system is to be valid and secure.”
As alleged in an indictment (the “Indictment”) unsealed today in Manhattan federal court, KASSEL created a scheme to obtain employment-based visas for immigration clients in exchange for a fee by pretending that these individuals possessed advanced degrees that they never earned. To perpetrate the scheme, KASSEL and ROSANNA ALMONTE, an assistant working for KASSEL, prepared and submitted fraudulent visa applications supported by fictitious diplomas and fake transcripts. JANA HALODA and VACLAV HALODA, both originally clients of KASSEL, facilitated the fraud by creating the fraudulent diplomas and supporting documents on a home computer and printer. More than a hundred fraudulent visa applications supported by these forged documents were submitted between 2008 and the present.
KASSEL (50), ALMONTE (26), JANA HALODA (32), and VACLAV HALODA (37) are all charged with conspiracy to commit immigration fraud and five substantive counts of visa fraud. If convicted, each defendant faces a maximum of five years of imprisonment on the conspiracy charge and ten years imprisonment on each of the five counts of immigration fraud. The defendants also face a maximum fine of $250,000 or twice the gross gain or loss from the offense for each count. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the agents with the U.S. Immigration and Customs Enforcement’s Department of Homeland Security Investigations and the United States Department of Labor’s Office of the Inspector General. He added that the investigation is ongoing.
The Office’s General Crimes Unit is overseeing the case. Assistant United States Attorney Andrea M. Griswold is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Richard Kassel Indictment
Las Cruces Man Pleads Guilty to Federal Possession of Child Pornography ChargeRead the Press Release
ALBUQUERQUE – Juan C. Rodriguez, 36, of Las Cruces, N.M., pled guilty yesterday afternoon in Las Cruces federal court to possession of matter containing visual depictions of minors engaged in sexually explicit conduct. Under the terms of his plea agreement, Rodriguez will be sentenced to 37 months in federal prison to be followed by a term of supervised release to be determined by the court. Rodriguez also will be required to register as a sex offender.
Rodriguez was arrested on April 23, 2014, by the FBI on an indictment charging him with one count of possession of child pornography. The indictment alleged that Rodriguez possessed child pornography in Doña Ana County, N.M., between June 2013 and Aug. 2013.
During yesterday’s hearing, Rodriguez pled guilty to the indictment and admitted that between June 6, 2013 and Aug. 22, 2013, he used a computer and computer-related media to download child pornography using a peer to peer network. In his plea agreement, Rodriguez acknowledged that law enforcement officers executed a search warrant at his residence on Aug. 22, 2013, and seized his computer and computer-related media. He further acknowledged that a forensic examination of those items uncovered approximately 30 still images and five videos consistent with child pornography.
Rodriguez was remanded into custody after entering his guilty plea. He remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of FBI and the Regional Computer Forensics Laboratory with assistance from the Denver office of the FBI. The case is being prosecuted by Assistant U.S. Attorney Alexander B. Shapiro of the U.S. Attorney’s Las Cruces Branch Office as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.The case also was brought as part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 74 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Kirbyville Man Sentenced to 7 Years in Prison for $1.3 Million K2 ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kirbyville, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute synthetic marijuana, commonly referred to as K2.
Michael J. Saguto, 44, of Kirbyville, was sentenced by U.S. District Judge Brian C. Wimes to seven years in federal prison without parole. The court also ordered Saguto to forfeit to the government $1,354,034, which represents the proceeds of the mail fraud conspiracy and for which Saguto is jointly and severally liable with his co-defendants.
On March 20, 2014, Saguto pleaded guilty to participating in a conspiracy to commit mail fraud and to participating in a conspiracy to commit money laundering. Saguto admitted that he conspired with others between March 1, 2011, and June 24, 2013, to defraud the Food and Drug Administration and to defraud the public by falsely representing that a number of synthetic cannabinoid products were “incense” or “potpourri” and “not for human consumption.” In reality, Saguto admitted, these substances contained compounds that were intended for human consumption as a drug.
Based upon the invoices, ledgers, and product seizures by law enforcement, this conspiracy was responsible for the manufacture and/or distribution of at least 188.14038 kilograms of synthetic cannabinoid products.
Co-defendant Travis E. Butchee, also known as “Donkey,” 38, of Springfield, also pleaded guilty to the same two conspiracy charges and awaits sentencing. Butchee’s wife, Victoria A. Butchee, also known as Victoria A. Wohlin, 29, of Springfield, also has pleaded guilty to her role in the mail fraud conspiracy and awaits sentencing. Co-defendant Christian L. Turner, 46, of Kirbyville, was sentenced on Monday, Aug. 4, 2014, to nine years in federal prison without parole. Turner pleaded guilty to possession with intent to distribute a controlled substance analogue and to being a felon in possession of firearms.
Travis Butchee opened The Man Cave, a retail business at 1927 S.Glenstone in Springfield, in February 2013. Travis Butchee and Saguto are the owners of Southern Spice, LLC and Saguto is the owner of Blues Away, a head shop and novelty store in Memphis, Tenn. Turner was employed by Saguto at Blues Away.
Saguto’s plea agreement cites a number of transactions in which materials used to manufacture and distribute synthetic cannabinoids were shipped via UPS or FedEx to members of the conspiracy – including controlled substance analogues (synthetic chemical compounds similar to THC, the psychoactive ingredient in marijuana), green leafy substances which served as carrier media, labels that were affixed to packages of “Donkey Punch,” “Jolly Grape Giant,” “South of the Tracks,” “Baby Face,” “Scarface,” “Hillbilly Hay,” and other synthetic cannabinoid products, and foil and plastic packaging bags.
Travis Butchee and Saguto also admitted that they conducted financial transactions that involved the proceeds of the unlawful mail fraud conspiracy. They conspired to wire funds to the People’s Republic of China in order to carry out the conspiracy.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the U.S. Postal Inspection Service, IRS-Criminal Investigation, the Missouri State Highway Patrol, COMET (Combined Ozarks Multi-jurisdictional Enforcement Team) and the Springfield, Mo., Police Department.KC Man Sentenced to 10 Years in Prison for Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for attempting to distribute child pornography over the Internet.
James A. Rhea, 32, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to ten years in federal prison without parole.
On Nov. 25, 2013, Rhea pleaded guilty to attempting to distribute child pornography over the Internet.
On Aug. 17, 2010, Rhea took his laptop computer to a Northland Best Buy store for repairs. After a repair person discovered apparent child pornography on the computer, a report was made to the Kansas City, Mo., Police Department. A search of the computer revealed that it contained more than 400 images and more than 40 videos of child pornography. The computer search also turned up emails which contained child pornography being sent and received by Rhea. Rhea was questioned by police detectives and admitted to receiving child pornography through email and Web chats. Rhea also admitted to having an online profile in which he portrayed himself as an 18-year-old female.
According to court documents, Rhea resumed downloading child pornography on his cell phone after he was questioned by police detectives and his laptop was confiscated. When Rhea was later arrested, he was in possession of a cell phone that contained an email, which showed images of child pornography.
This case was prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the Kansas City, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Jonathan Mendhein Sentenced to Sixty Months in Prison for Receipt and Possession of Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On Aug. 14, 2014, Jonathan Mendheim, 35, of Indianapolis, Ind., was sentenced by the Honorable Leon Jordan, Senior U.S. District Judge, to serve 60 months in prison for receipt and possession of child pornography. Upon his release from prison he will be under supervised release for 20 years. Additionally, he was ordered to pay $3500 in restitution to the victims.
In January 2014, Mendheim pleaded guilty in U.S. District Court in Knoxville to these charges. Details of the crimes committed are outlined in the plea agreement on file with U.S. District Court.
This investigation was conducted by the Knoxville Police Department Internet Crimes Against Children Task Force, Homeland Security Investigations, Knoxville and Cherry Hill, New Jersey. Assistant U.S. Attorney Jennifer Kolman represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Jefferson County Man Sentenced to Lengthy Prison Term on Multiple Child Pornography ChargesRead the Press Release
St. Louis, MO – JODY EUGENE SMITH, Pevely, Missouri, was sentenced to 720 months in prison on multiple child pornography charges, including production, attempted production, receipt and transportation. Smith pled guilty to the charges in April and appeared today for sentencing before United States District Judge Henry Autrey.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Florida Department of Law Enforcement and the St. Louis County Police Department. Assistant United States Attorney Rob Livergood handled the case for the U.S. Attorney's Office.
Jefferson County Man Sentenced to 188 Months on Methamphetamine ChargesRead the Press Release
Follow @SDILNewsA Jefferson County man was sentenced on August 8, 2104, to federal prison on methamphetamine charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Jose A. Roman, 37, of Mt. Vernon, Illinois, was sentenced to 188 months’ imprisonment, five years’ supervised release following his imprisonment, and was fined $200. The Court sentenced Roman as a Career Offender due to Roman’s previous criminal history. Roman had previously pleaded guilty to a two count federal indictment. Counts 1 and 2 charged that on two separate occasions on May 7, 2013, in Jefferson County, Illinois, Roman knowingly and intentionally distributed methamphetamine.
The investigation in this case was conducted by the Joint Narcotics Unit of the Mt. Vernon Police Department and the Jefferson County Sheriff’s Department.
The case is being handled by Assistant United States Attorney George Norwood.
Ithaca, N.Y., Man Charged with Abusive Sexual Contact with Sleeping Woman on International FlightRead the Press Release
NEWARK, N.J. – An Ithaca, New York, man appeared in federal court today on charges he allegedly engaged in abusive sexual contact with a sleeping woman aboard a flight from Tokyo, Japan, to Newark Liberty International Airport, U.S. Attorney Paul J. Fishman announced.
Eun Jong Lee, 47, was detained upon arrival in Newark yesterday evening, Aug.10, 2014, and arrested by agents of the FBI. He was charged by complaint with abusive sexual contact and appeared this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.According to the complaint filed today:
Lee was seated next to a woman on a United Airlines flight from Tokyo to Newark. While the plane was in the air, the woman B who did not know Lee B fell asleep. She awoke to find Lee’s hand on the front of her shirt, touching her breast through her clothing. Lee then touched the skin of her neck and attempted to place his hand down the front of the woman’s shirt.
After asking Lee to stop touching her, the woman reported the incident to a flight crew member and provided the crew member a written statement describing what happened. The federal government has exclusive jurisdiction over all abusive sexual contact cases that occur in American airplanes in flight.
The abusive sexual contact charge carries a maximum potential penalty of two years in prison and a $250,000 fine.
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 the arrest. He also thanked the Port Authority of New York and New Jersey Police Department for their role in the case.
The government is represented by Shirley U. Emehelu of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: John Yauch Esq., Assistant Federal Public Defender, Newark
Lee, Eun Jong Complaint
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Strong in Great Falls on August 8, 2014 and entering pleas of Not Guilty were:
JENNELL MOZEL DOWNING, a 34-year-old resident of Great Falls, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, DOWNING, faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Drug Enforcement Administration and the Russell Country Drug Task Force. PACER Case Reference: 14-58
KYLE JOEANIEL GOBERT, a 28-year-old resident of Browning, appeared on charges of assault resulting in serious bodily injury, assault with a dangerous weapon and discharge of a firearm during a crime of violence. If convicted of the most serious charges contained in the indictment, GOBERT faces life in prison, $250,000 in fines, and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-63
WAYNE DELVIN LITTLECROW, a 49-year-old resident of Brockton, appeared on charges of aggravated sexual abuse, abusive sexual contact and sexual abuse of a minor. If convicted of the most serious charges contained in the indictment, LITTLECROW faces life in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-62
BRANDON PETER REDHEAD, 25-year-old resident of Browning, appeared on charges of felony child abuse. If convicted of the charge contained in the indictment, REDHEAD faces 10 years in prison, $50,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-64
Appearing before U.S. Magistrate Judge Ostby in Billings on August 11, 2014 and entering pleas of Not Guilty were:
LESLIE BEAR COMES OUT, a 32-year-old resident of Lame Deer appeared on charges of conspiracy to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, possession with intent to distribute methamphetamine on premises where children are present and felony child endangerment. If convicted of the most serious charges contained in the indictment, BEAR COMES OUT faces life in prison, $4,000,000 in fines and 5 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference: 14-79
DELPHINE MEDICINE HORSE, a 40-year-old resident of Lame Deer appeared on charges of conspiracy to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, possession with intent to distribute methamphetamine on premises where children are present and felony child endangerment. If convicted of the most serious charges contained in the indictment, MEDICINE HORSE faces life in prison, $4,000,000 in fines and 5 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference: 14-79
DONNIE DARRELL NOLAN, a 44-year-old resident of Billings, appeared on charges of felon in possession of a firearm. If convicted of the most serious charge contained in the indictment, NOLAN faces 10 years in prison, $250,000 in prison, and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco and Firearms. PACER Case Reference: 114-13
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Huntington Man Sentenced to 15 Years in Federal Prison for Child PornographyRead the Press Release
Defendant was previously convicted of sexually assaulting two minor girls
HUNTINGTON, W.Va. – John D. Hayes, a 66-year-old Cabell County resident, was sentenced to 15 years in federal prison followed by 10 years of supervised release for possession and attempted distribution of child pornography, United States Attorney Booth Goodwin announced today. The sentence was handed down by Chief United States District Judge Robert C. Chambers in Huntington.
Following a bench trial in March of 2014, Hayes was found guilty of knowingly possessing child pornography and attempting to distribute child pornography. Between March 17 and April 28, 2012, authorities discovered that child pornography was being shared via a peer-to-peer network called Frostwire. Authorities traced the computer used to share the child pornography to Hayes’ Huntington residence. Computer evidence seized from Hayes’ home, including a portable USB drive, was examined by authorities and found to contain thousands of pornographic images and videos of children. The examination also revealed that one of the computers in Hayes’ possession contained the Frostwire program and had a unique user identification number (known as a GUID) that matched the GUID linked to the child pornography shared in March and April of 2012.
In 1979, Hayes was convicted in the Circuit Court of Putnam County, West Virginia for two counts of second degree sexual assault of female children ages 10 and 12.
U.S. Attorney Booth Goodwin said, “When criminals like John Hayes download and trade child pornography, they perpetuate the exploitation and abuse of innocent children. Every successful child pornography prosecution makes our communities and our children safer.”
The investigation of Hayes was conducted by the West Virginia Internet Crimes Against Children Task Force, with the assistance of the Huntington Police Department and the West Virginia State Police. Assistant United States Attorneys Jennifer Rada Herrald and Lisa Johnston were in charge of the prosecution.
This case was prosecuted as part of Project Safe Childhood. In February 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.
Houston Woman Admits to Defrauding Charity Organization of More Than $65KRead the Press Release
HOUSTON – Simone Nicole Gary, 36, of Houston, has pleaded guilty to mail fraud and Social Security fraud in relation to the submission of fraudulent claims to the American Kidney Fund (AKF), announced United States Attorney Kenneth Magidson.
On July 15, 2010, Gary used the name and Social Security number of another person to obtain employment at Fresenius Medical Clinic (FMC) in Houston as a financial coordinator. As part of her duties, Gary assisted clients with their financial needs and verified insurance information.
FMC provides kidney dialysis to patients with kidney failure and is a longtime client of AKF, located in Rockville, Md. AKF awards financial grants to dialysis patients to obtain health care insurance. AKF has an online process which allows a dialysis clinic to submit a grant application on behalf of a patient.
While employed at FMC, Gary submitted fraudulent applications to AKF for grants to patients undergoing dialysis. As a result, AKF mailed grant checks payable to these patients to the attention of Gary at FMC in Houston. Gary took these checks, forged patient signatures and then deposited them into her own bank account.
As a result of the scheme, AKF suffered a loss of $65,768.78.
U.S. District Judge Lynn N. Hughes, who accepted the guilty plea today, has set sentencing for Nov. 10, 2014. At that time, she faces up to 20 years in federal prison for the mail fraud and up to five years for the Social Security fraud. Both convictions also carry as possible punishment a $250,000 fine.
She was permitted to remain on bond pending sentencing.
The case was investigated by the Secret Service and Social Security Administration - Office of Inspector General. Assistant United States Attorney John Braddock is prosecuting.