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8 August 2014
Jacksonville Man Pleads Guilty in Tax Fraud SchemeRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III, announces that Roberto Bisono (34, Jacksonville) pleaded guilty today to theft of government property in connection with cashing numerous federal income tax refund checks which were issued on false and fraudulent tax returns. Under the terms of a plea agreement, Bisono pleaded guilty to one count of theft of government property which carries a maximum penalty of 10 years in prison. He also agreed to make restitution of approximately $711,000 to the Internal Revenue Service. Bisono was released on a $25,000 bond pending a sentencing hearing. A date has not been set. Bisono was indicted on March 13, 2014.
According to court records, between November 2011 and April 2012, Bisono obtained U.S. Treasury checks which were mailed to bogus taxpayers in the Bronx, New York. These checks were the results of false and fraudulently-filed tax returns. In November 2011, Bisono deposited the first 7 checks into a business bank account of co-defendant Juan Miguel Ruiz, and later furnished the remaining 104 checks to Ruiz, who operated a check cashing business on Beach Boulevard in Jacksonville. Between November 2011 and April 2012, Ruiz deposited the additional 104 checks into his business bank account in Jacksonville, Florida. From his business bank account, Ruiz wrote checks totaling over $227,000 to Bisono, and to other persons associated with Bisono.
On July 11, 2014, Ruiz pleaded guilty to conspiracy for his role in the scheme. He faces a maximum penalty of 5 years in federal prison. Ruiz is currently released on bond pending a sentencing hearing.
This case was investigated by the Jacksonville office of the Internal Revenue Service - Criminal Investigations. It is being prosecuted by Assistant United States Attorney Dale R. Campion.
Indiana Man Sentenced for Illegal Possession of Destructive DevicesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS –Andrew Scott Boguslawski, 44, of Moores Hill, Indiana was sentenced in U.S. District Court to serve 24 months in prison for illegally possessing 13 unregistered destructive devices when he was stopped by an Ohio State trooper on January 1, 2014 on Interstate 70 in Madison County, Ohio. Boguslawski was also ordered to remain under court supervision for three years following his time in prison.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Michael Boxler, Special Agent in Charge, Columbus Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Ohio Fire Marshal Larry Flowers, Ohio State Highway Patrol Superintendent Paul Pride and Madison County Prosecuting Attorney Stephen J. Pronai announced the sentence imposed today by Senior U.S. District Court Judge James L. Graham.
Boguslawski pleaded guilty in April to possession of nine fully-assembled unregistered destructive devices and four unregistered destructive devices consisting of component parts, designed and intended for use in conversion into bombs, and from which bombs could be readily assembled. Boguslawski admitted in his plea agreement that he had the component parts to assemble 20 more destructive devices in his Indiana home.
“Boguslawski’s bomb-builder lifestyle presents an extreme danger to the public,” Assistant U.S. Attorneys Dana Peters and Salvador Dominguez told the court prior to sentencing.
A destructive device is an explosive device that is capable of causing property damage and personal injury and/or death to persons near the explosion. Federal law requires that destructive devices be registered in the National Firearms Registration and Transfer Record.
Troopers arrested Boguslawski at the scene. He was charged in Madison County on state charges. Those charges have been dismissed. Boguslawski was charged by a federal complaint on March 3, 2014.
U.S. Attorney Stewart and Madison County Prosecuting attorney Pronai commended the cooperative investigation by ATF, the State Fire Marshal, the Ohio State Highway Patrol and the Columbus Bomb Squad, as well as the FBI Joint Terrorism Task Force, which participated in the investigation. Stewart and Pronai also commended Assistant U.S. Attorneys Dana Peters and Salvador Dominguez, who prosecuted the case.
# # #Houma Interpreter, Trina Marie Bourg, Indicted for Wire FraudRead the Press Release
U.S. Attorney Kenneth Allen Polite, Jr. announced that TRINA MARIE BOURG, age 45, of Houma, Louisiana, was indicted today for crimes involving the solicitation of illegal bribes from immigrants and their family members.
According to court records, on May 7, 2014, the U.S. Department of Homeland Security-Homeland Security Investigations (“HSI”) received information that BOURG, who worked as a Spanish language interpreter contract employee for the Office of the District Defender for the 32nd Judicial District for Terrebonne Parish, was soliciting payments from individuals (“victims”) illegally present in the United States. Unknown to the victims’ attorneys, BOURG represented to the victims that she would use the money she received to bribe United States Immigration Officials in order to remove the immigration detainers or federal immigration charges from the victims’ criminal or administrative cases. In 2011 and again in 2014, BOURG solicited two bribes totaling $4,000 from Victim “A” and his family members. BOURG received a total of $3,500 from Victim “A’s” family member who paid BOURG because BOURG represented to the victim’s family members that she would use the money to influence federal immigration officials.
If convicted, BOURG faces a term of incarceration of up to of twenty (20) years.
U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by special agents from the U. S. Department of Homeland Security-HSI, the Louisiana State Police-Criminal Investigation Division, and the Terrebonne Parish Sheriff’s Office. The prosecution of this case is being handled by Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba.
(Download Indictment )
Holden Woman Convicted in Scheme to Steal Close to $1 Million from Elderly In-LawsRead the Press Release
WORCESTER - A Holden woman was convicted of wire fraud today after pleading guilty to charges that she stole close to $1 million from her elderly in-laws.
Chiao Fang Ku, 45, pleaded guilty before United States District Court Judge Timothy S. Hillman to an Information charging her with wire fraud. Sentencing is scheduled for November 3.
After Ku’s father-in-law became ill in 2008, Ku offered to help her mother-in-law manage the couple’s finances. Ku was given access to her in-laws’ savings and investment accounts. She thereafter began siphoning funds from those accounts through online transfers, forged checks, and cash withdrawals, and used the money for on-line gambling activities and other personal uses. She also applied for — and received — credit cards in her mother-in-law’s name without authorization, and then used those cards for personal expenses. In total, Ku stole over $950,000 from her in-laws over a five-year period.
The maximum statutory sentence for wire fraud is 20 years in prison to be followed by three years of supervised release and a fine of the greater of $250,00 or twice the gross gain or loss. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Eric P. Christofferson of Ortiz’s Economic Crimes Unit.
Hillsdale Police Lieutenant and Officer Plead Guilty to Federal Drug ChargesRead the Press Release
St. Louis, MO – LIEUTENANT PARRISH SWANSON and OFFICER RAYMOND STEPHENS pled guilty to charges of conspiracy to distribute and attempted distribution of heroin.
According to court documents, during March 2014, Swanson and Stephens agreed to assist an associate, a suspected drug dealer, rob or what is more commonly referred to as "rip off," a drug courier of an amount of heroin within the City of Hillsdale. The associate agreed to pay Swanson and Stephens cash for their assistance in this "rip off." On March 20, 2014, Stephens, while on duty as a Hillsdale police officer, approached the drug courier and robbed him of approximately four ounces of suspected heroin. He later met with the associate and gave him the heroin in exchange for $900 cash. Stephens then gave Swanson $200 of the $900 per their previous agreement.
Swanson, St. Louis, Missouri; and Stevens, St. Charles, Missouri, pled guilty to one felony count each of conspiracy to distribute heroin and attempt to distribute heroin before United States District Judge Rodney W. Sippel. Sentencing for both defendants has been set for October 2014.
Each count carries a maximum penalty of 20 years in prison and/or fines up to $1 million. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the St. Louis County Police Department. Assistant United States Attorneys Hal Goldsmith and John Bodenhausen are handling the case for the U.S. Attorney's Office.
Hartford Man Indicted as Part of Project Longevity InvestigationRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford has returned an eight-count indictment charging KEVIN BETTS, also known as “KK,” 28, of Hartford, with narcotics distribution and firearms offenses. The indictment was returned on August 6, 2014.
The indictment alleges that in July 2014, BETTS manufactured PCP in an apartment at 57 Sumner Street in Hartford, and then distributed the drug on multiple occasions. The indictment further alleges that on August 1, 2014, BETTS possessed three loaded firearms: a Glock, model 22, .40 caliber handgun; a Taurus, model Judge, .45 caliber handgun, and a Taurus, model Millennium PT-140, .40 caliber handgun.
BETTS is charged with five counts of distributing Phencyclidine (“PCP”), one count of possessing PCP, one count of maintaining a drug-involved premises, and one count of possessing a firearm in furtherance of his drug trafficking.
The charge of possession with intent to distribute, and distribution of PCP carries a maximum term of imprisonment of 20 years and a fine of up to $1 million. BETTS faces an additional five-year consecutive term of incarceration if convicted of possessing the firearms in furtherance of drug trafficking. He also faces a maximum term of imprisonment of 20 years and a fine of up to $500,000 if convicted of maintaining a drug distribution premises.
This prosecution stems from Project Longevity, a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence. A critical component of the Project Longevity strategy is the “call-in,” a face-to-face meeting where Project Longevity partners engage group members and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. The alleged criminal activity engaged in by BETTS occurred after a call-in that was held on April 1, 2014, and was attended by BETTS’ associates.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the Hartford Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
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(203) 821-3722 [email protected]Georgia Doctor Sentenced to 20 Years in Prison for Operating Pill-Mill ClinicsRead the Press Release
BRUNSWICK, GA – CLEVELAND J. ENMON, 36, of Decatur, Georgia, who was convicted by a federal jury of over 90 counts of drug distribution offenses for his role in prescribing hundreds of thousands of pain medications for no legitimate medical purpose, was sentenced last month to 20 years in prison by U. S. Chief District Court Judge Lisa Godbey Wood.
According to the evidence presented at trial and at the sentencing hearing, ENMON was a licensed physician in California and Georgia since in or about 2005. In May 2011, ENMON began working at Brunswick Wellness, a “pill mill” located in Brunswick, Georgia. During a two-month period while working at Brunswick Wellness, ENMON wrote prescriptions to thousands of people from all over the Eastern United States, from Maine to Florida, for no legitimate medical purpose. Most of these “patients” were drug dealers or drug addicts. For writing these unlawful prescriptions, ENMON was paid almost $70,000 by the owners of Brunswick Wellness.
After agents of the DEA executed search warrants at Brunswick Wellness in July 2011, and shut it down, ENMON opened up his own “pill mill” in Jesup, Georgia, known as Ocean Care, where he continued to write prescriptions for massive amounts of controlled substances for no legitimate medical purpose. Before Ocean Care was shut down in December 2011, ENMON raked in almost $500,000 for writing these bogus prescriptions, some of which ENMON used to buy himself a yellow Ferrari Spyder. The DEA later seized the Ferrari, along with tens of thousands of dollars from bank accounts in ENMON’s name.
At ENMON’s trial, numerous patients, employees, other doctors, and members of the Brunswick and Jesup communities testified about ENMON’s criminal conduct at both Brunswick Wellness and Ocean Care. The trial testimony showed that ENMON would issue prescriptions to virtually anyone who was willing to pay him $350 fee for a prescription. At least one patient testified that she “paid” for her prescription by arranging for a prostitute to provide services to ENMON. Other evidence showed that ENMON even prescribed massive amounts of prescription medications to a pregnant woman, who later gave birth to a baby born addicted to pain medications.
In December 2013, after four days of testimony, a federal jury convicted ENMON of 92 counts of Conspiracy to Unlawfully Dispense Controlled Substances, Unlawful Dispensation of Controlled Substances, and Money Laundering. ENMON has been in the custody of the United States Marshals since before trial in this matter.
ENMON is the fifth and final defendant convicted in connection with the investigation of the Brunswick Wellness and Ocean Care pill mills. Other convicted included:
- Ronald R. Colandrea, of Miami, Florida, who was the owner of Brunswick Wellness, and who is now serving 7 years in prison and was required to forfeit more than $500,000 in cash and vehicles;
- Natalie Anderson, of Jesup, Georgia, who was the manager of Brunswick Wellness, and who is now serving 5 years in prison;
- Dr. Dennis Momah, of Portland, Oregon, who was another doctor at Brunswick Wellness, and who surrendered his medical license and is now serving 3 years in prison; and,
- Dr. Bruce Tetalman, of Augusta, Georgia, who was also a doctor at Brunswick Wellness, and who surrendered his medical license and is now serving 5 years of probation.
United States Attorney Edward J. Tarver stated, “Cleveland Enmon was a drug dealer in a white coat who chose a Ferrari over the welfare of patients. ‘Pill Mill’ doctors, office managers, and owners who think about setting up shop in the Southern District of Georgia should know this: the cost of pushing your poison in our communities is a federal prison cell.”In addition to the prison sentence, Chief Judge Wood ordered that ENMON serve 5 years of supervised release upon release from prison. Tarver noted that there is no parole in the federal system.
The case was investigated by the DEA, the Glynn-Brunswick Narcotics Enforcement Team; and Wayne County Sheriff’s Office. Assistant United States Attorneys Brian T. Rafferty and Jeffrey J. Buerstatte prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Four Head to Prison in Northeast Houston Theft and Fraud RingRead the Press Release
HOUSTON – Dana Sue Hales and three other Houston area residents have been sentenced in relation to a theft and fraud ring that operated in Northeast Harris County and elsewhere, announced United States Attorney Kenneth Magidson. Hales, 42, pleaded guilty for her role in the overall scheme as did Lindsay Ann Grice, 27, Joseph Scott Ryder, 46, and Jason Craig White, 34.
Today, U.S. District Judge Melinda Harmon sentenced Hales to 51 months for conspiracy to commit bank fraud and for possessing stolen mail which will be served concurrently. She received an additional 24 months for aggravated identity theft which must be served consecutively for a total sentence of 75 months.
Previously, Grice received 12 months for bank fraud as well as a consecutive 24 months for aggravated identity theft, for a total sentence of 36 months in federal prison. White and Ryder were both convicted of possessing stolen mail and possession of a firearm by a convicted felon and were each ordered to serve total sentences of 33 months.
According to the information revealed in open court, beginning at least in January 2012 the defendants broke into “blue” mail boxes located at or near area post offices to steal mail. Much of what the defendants stole included outgoing mail from citizens paying their bills. After opening the mail, they created false identifications and used them to open bank accounts and deposit the checks. On more than one occasion, area law enforcement were able to seize gym bags full of stolen mail from locations where the defendants were staying.
During the investigation, Grice was identified from bank surveillance photos negotiating stolen checks at First Convenience Bank. At the time of her guilty plea, she admitted she participated in the mail theft ring and had used the personal identification information of another person to cash stolen checks.
Information from court documents also revealed that in addition to stealing mail and cashing the checks using false identifications, Hales prepared false federal income tax returns and deposited the refund checks to accounts under her control.
On Sept. 5, 2012, Ryder was arrested at the residence of Hales on a parole violation warrant, at which time he was found to be in possession of a firearm. Ryder subsequently admitted that he, Hales and White were stealing mail, creating false identifications and cashing checks.
Later that month, agents and officers attempted the arrest of White, at which time he fled and attempted to pull a firearm. However, he dropped the gun and was arrested a short distance away. Stolen mail and additional firearms were found in a subsequent search of the residence. White confessed to participating with Hales, Ryder and others in stealing mail.
The matter was investigated by IRS-CI and the U.S. Postal Inspection Service with important contributions from the Harris County Sheriff’s Department, Harris County Precinct Four Constable’s Office, Humble Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives as well as the U.S. Marshals Service Violent Offenders Task Force. The case is being prosecuted by Assistant U.S. Attorney James R. Buchanan.
Former Microsoft Financial Manager Sentenced to Two Years in Prison for Insider TradingRead the Press Release
A former Senior Manager at Microsoft was sentenced today to two years in prison, three years of supervised release for insider trading, announced U.S. Attorney Jenny A. Durkan. BRIAN JORGENSON, 32, of Lynnwood, Washington was employed as a Senior Manager in Microsoft’s Treasury Group. JORGENSON pleaded guilty earlier this year admitting that he recruited a former co-worker at an asset management company to make stock trades to help him profit on the movement of Microsoft stock and the stock of related companies. JORGENSON’s codefendant Sean Stokke, 28, of Seattle was sentenced last month to 18 months in prison. At the sentencing hearing today Chief Judge Marsha J. Pechman noted that the financial markets operate on trust. “If we don’t stop the people (who are cheating) that we catch and hold them up as an example, we erode that trust,” Chief Judge Pechman said.
“Motivated by greed, this defendant traded on his employer’s confidential information to line his own pocket,” said U.S. Attorney Jenny A. Durkan. “Western Washington abounds in publicly traded companies with thousands of insiders who have daily access to market moving information. The sentence in this case should serve as a warning to others who might be tempted to engage in this conduct.”
According to the records in the case, the men profited on three distinct instances of insider information: Microsoft’s investment in Barnes and Noble; Microsoft’s failure to meet earnings estimates in the fourth quarter of fiscal 2013; and Microsoft’s increased first quarter earnings in fiscal 2014. After the successful trades, Stokke provided JORGENSON with envelopes of cash in approximately $10,000 increments to avoid any paper trail.
At the sentencing hearing JORGENSON told the court, “I cheated. I tried to take a shortcut for my own financial gain…. I persuaded myself it was a gray area, when it clearly was black and white.”
Through his employment, JORGENSON became aware in early April 2012 that Microsoft was considering an investment in Barnes and Noble for its digital and college business. Stokke opened an online options account and began accumulating options on Barnes and Noble stock. When Microsoft announced the investment in Barnes and Noble, the Barnes and Noble stock jumped 49%. The men sold the option for a profit of more than $184,000.
In early July 2013, JORGENSON learned through his employment that Microsoft would not meet its earnings estimate. Beginning in mid-July, Stokke bought “put” options on Microsoft stock and the stock of a technology sector fund influenced by Microsoft stock – essentially betting both stocks would go down. When Microsoft announced the lower than expected earnings on July 18, the stock did drop and the “put” options resulted in a profit to the two men of more than $218,000.
In October 2013, because of his employment, JORGENSON learned that Microsoft would announce a 17 percent increase in earnings per share over the prior year. One day before the announcement, Stokke used brokerage accounts controlled by the two men to purchase call options of a technology sector fund that is influenced by the price of Microsoft stock. Following the earnings announcement, Microsoft stock and thus the sector fund went up. The men executed their options and sold the shares for a profit of nearly $13,000.
The case was investigated by the FBI and the SEC. The case is being prosecuted by Assistant United States Attorney Katheryn Kim Frierson.
Former Executive Indicted for Defrauding Shipping Company of More Than $4 MillionRead the Press Release
HOUSTON – Kathleen Creel, a former employee of Wilhelmsen Ships Service Inc., has been charged with defrauding her company and causing a loss of more than $4.1 million, announced United States Attorney Kenneth Magidson.
The indictment, returned under seal April 9, 2014, was unsealed yesterday upon her arrest by federal authorities in New York. She made her initial appearance there and is set to appear in Houston in the near future.
As outlined in the indictment, Creel, 43, formerly of Houston, was employed by Wilhelmsen and a predecessor company at its Pasadena headquarters as the company’s customs and tax manager. In this role, Creel had access to sensitive financial information, including billing records and bank account information for Wilhelmsen vendors. She also allegedly had access to Wilhelmsen bank accounts and the ability to cause Wilhelmsen to make payments to vendors.
The indictment alleges that from at least June 2003 through approximately August 2009, Creel defrauded Wilhelmsen by embezzling more than $4.1 million from the company’s bank accounts. Creel allegedly used Wilhelmsen’s accounting system to cause a series of wire transfers from the company’s bank accounts into her own.
The indictment specifically alleges that Creel carried out the scheme by creating false invoices from two Wilhelmsen vendors, identified as Vendor A and Vendor B. Creel allegedly entered the false invoices into Wilhelmsen’s accounting system and either approved or caused them to be approved for payment. These actions then caused interstate wire transfers from Wilhelmsen’s New York based bank account into Creel’s bank account, according to the indictment. Creel allegedly carried out the scheme from 2003 to 2005 by causing the company to issue physical checks to a vendor which she then arranged to be mailed to a Post Office box in La Porte, which she controlled. The indictment alleges Creel collected these checks and deposited them into her bank account.
Creel is charged with 10 counts of wire fraud, based on the wire transfers into her bank account. If convicted, she faces up to 20 years in federal prison on each count as well as a $250,000 maximum fine or twice the pecuniary gain or loss.
The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney John Pearson.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Deputy Sheriff Sentenced to Federal Prison for Soliciting KickbacksRead the Press Release
ATLANTA - Former Fulton County Deputy Sheriff Reginald Warren has been sentenced for demanding bribe payments from security officers he scheduled to work at the City of Atlanta's public swimming pools.
“Mr. Warren’s conviction and sentence are a reflection of our commitment to make sure those who work within the law enforcement community respect and keep the public’s trust,” said United States Attorney Sally Quillian Yates. “This former deputy sheriff used his position and badge to extort kickbacks from workers contracted by the City of Atlanta to make the pools safe for its citizens and, consequently, betrayed the people he promised to help.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI remains committed to identifying, investigating, and presenting for prosecution those law enforcement officers who would sell their badges for personal gain and today's sentencing reflects that commitment. The FBI, in carrying out its public corruption mandate, asks that the public report such activity to their nearest FBI field office.”
According to United States Attorney Yates, the charges and other information presented in court: During the summer of 2011, while Warren was employed as a deputy with the Fulton County Sheriff’s Office, he contracted with the City of Atlanta to coordinate and supervise security at the city’s public swimming pools. In that capacity, Warren hired a number of security officers and scheduled them to work various shifts at pools located throughout the city. Soon after the officers were hired, Warren demanded payments from at least three officers in exchange for continuing to schedule them for more work. Over a three-month period, Warren accepted thousands of dollars in kickbacks from the officers which he pocketed for himself.
Warren, 50, of Covington, Ga., was sentenced to one year, three months in federal prison, to be followed by supervised release for two years. He pleaded guilty on May 6, 2014.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Brent Alan Gray prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Florida Resident Sentenced to 15 Years in Prison for Violent Crimes Linked to Debt DisputeRead the Press Release
A Florida resident who threatened family members over a $20,000 debt and used firebombs to torch one home and threaten another, was sentenced today to fifteen years in prison, announced U.S. Attorney Jenny A. Durkan. SANG NGOC UNG, 54, of Margate, Florida pleaded guilty in April 2014 to Collection of Extension of Credit by Extortionate Means, Interstate Travel in Aid of Racketeering Activity, Unlawful Possession of a Destructive Device and Carrying a Firearm During and in Relation to a Crime of Violence. In his plea agreement UNG admits that in the early morning hours of June 10, 2013 he set fire to his relative’s home on S. Cloverdale Street in Seattle. The fire extensively damaged the home and forced the homeowner, her adult children and a friend to flee through a window and the garage. Shortly after that fire, investigators went to a second home associated with the family and discovered a destructive device that had not ignited. U.S. District Judge Richard A. Jones imposed the sentence.
“This defendant earned every day of this sentence. He attempted to rule his victims through fear and violence,” said U. S. Attorney Jenny A. Durkan. “He endangered not just his targeted victims, but those who live nearby and all first responders.”
According to records in the case, UNG had been pressuring family members in Seattle about $20,000 he believes is owed to him. Family members had attempted to pay some of the money, but UNG reportedly continued to threaten them if the debt was not paid. In mid-May 2013, UNG arrived in the Seattle area and again began pressuring the family to repay the debt. On June 9, 2013, UNG was observed attempting to contact people at both homes. The fire and the destructive device that failed to ignite were discovered the next day. Cell phone records place UNG in the Seattle area during the time the fire and destructive device were set. Evidence on the destructive device ties him to the scene. UNG returned to the Seattle area in July 2013 and was arrested by Seattle Police and ATF agents. At the time of his arrest UNG had a firearm in his possession and admits that he was armed during the criminal conduct in this case.
The case was investigated by the Seattle Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). The case was prosecuted by Assistant United States Attorney Todd Greenberg.
Florida Man Admits Leading Stolen Credit Card Trafficking Ring Involving More Than 114,000 Accounts and Losses of $23 MillionRead the Press Release
NEWARK, N.J. – A Florida man pleaded guilty today to his role in a conspiracy to possess and traffic stolen credit card data held by New Jersey residents, U.S. Attorney Paul J. Fishman announced.
Miguel Gonzalez, 40, of Miami, Florida, pleaded guilty before U.S. District Court Judge Esther Salas in Newark federal court to an information charging him with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
Between January 2010 and July 2013, Gonzalez obtained and possessed stolen credit card data for more than 114,000 credit card accounts. Gonzalez purchased the stolen credit card information from various vendors who advertise and transmit the data over the Internet using email and instant chat software. These vendors sold stolen credit card data obtained from network intrusions into various corporate victims, including major retailers in the state of New Jersey. The stolen credit card data was used by Gonzalez and others to create counterfeit credit cards, which were used to enter into unauthorized and fraudulent transactions. The credit card issuers associated with the more than 114,000 stolen credit card accounts suffered a combined loss of more than $23 million. Gonzalez used the proceeds of his illegal activity to purchase multiple homes, expensive jewelry and a speedboat.
The conspiracy to commit wire fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for Nov. 21, 2014.
U.S. Attorney Fishman credited agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Andrew S. Pak of the Computer Hacking and Intellectual Property Section of the Office’s Economic Crimes Unit.
14-288Defense counsel: Ricardo P. Hermida Esq., Miami
Gonzalez, Miguel Information
Environmental Firm President Sentenced for Defrauding the GovernmentRead the Press Release
PITTSBURGH – An Armstrong County man was sentenced in federal court to eight months of imprisonment, to be followed by eight months of home detention and then 18 months of supervised release, on his conviction for wire fraud, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Michael Fullard, 54, of Apollo, Pa.
According to information presented to the court, Fullard was the President of Fullard Environmental Controls ("FEC") located in Ford City. FEC performed demolition services in 2007 for the United States Department of the Navy in Beaufort, South Carolina. The Information alleged that Fullard, along with Barry K. Peterson, who was a co-owner of FEC, defrauded the government by submitting false information to the Department of the Navy regarding the costs that were incurred by FEC to perform the demolition services. Fullard and Peterson, through FEC, defrauded the government in the amount of approximately $772,701.10. As part of the sentence, Judge McVerry ordered Fullard to pay a forfeiture judgment to the United States Government in the amount of $772,701.10.
Additionally, Fullard is required to fulfill his obligations pursuant to a civil Settlement Agreement. Fullard was instrumental in aiding the Affirmative Civil Enforcement Unit of the United States Attorneys’ Office in the recovery of $462,000.00 in federal contract payments earmarked for Fullard’s company, payments that otherwise would have been beyond the reach of the United States Government. As a result of this recovery, the government did not seek, and Judge McVerry did not order, any restitution over and above the forfeiture amount of $772,701.10.
Assistant United States Attorney Shaun E. Sweeney prosecuted this case on behalf of the government. Assistant United States Attorney Paul E. Skirtich secured the False Claims Act settlement.
U.S. Attorney Hickton commended the Department of Defense, Defense Criminal Investigative Service and Naval Criminal Investigative Service for the investigation leading to the successful prosecution of Fullard.
East St. Louis Post Office Supervisor Sentenced for Stealing PackagesRead the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today, that on August 8, 2014, Jane Johanna Emily, a/k/a Jane Moeller, 42, of St. Louis, Missouri, was sentenced on a three-count indictment charging that she had stolen packages from the United States Mail. The United States District Court in East Saint Louis sentenced Emily to serve five years’ probation with the first six months of which to be served in home detention. She was also ordered to pay a $300.00 fine and pay a special assessment of $300.00.
At her plea Emily, who worked as a customer service supervisor at the United States Post Office in East Saint Louis, admitted that she had opened and stolen mail packages that she believed were carrying controlled substances (drugs). The investigation that resulted in the charges was brought about after a customer contacted the post office in March 2013 regarding a missing parcel that had been seen by other postal employees in her office at the East St. Louis Post Office.
In April 2013, an undercover investigation was conducted by Special Agents of the United States Postal Service, Office of Inspector General. Agents sent a package that was suspicious in that it might contain drugs to the East St. Louis Post Office. During the undercover operation, Emily, who did not deliver packages, removed the package and left the post office. Agents ultimately stopped Emily and discovered that she still had the undercover package and the undercover package had been opened.
At one point during the investigation Emily indicated she was actually working for the Postal Inspectors to uncover suspicious packages. Agents, who were conducting the undercover investigation, knew this information to be false.
The case was investigated by the United States Postal Service, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Liam Coonan.
District Man Sentenced to Nine Years in Prison for Fatal Stabbing in Northwest WashingtonDefendant Started Argument, Leading to AltercationRead the Press Release
WASHINGTON - Jonathan Dawkins, 32, of Washington, D.C., was sentenced today to nine years in prison for the fatal stabbing of a man in May 2012 in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Dawkins was found guilty in May 2014 by a jury in the Superior Court of the District of Columbia of voluntary manslaughter while armed. He was sentenced by the Honorable Russell F. Canan. Following his prison term, Dawkins will be placed on five years of supervised release.
According to the government’s evidence, on May 1, 2012, at about 2:15 a.m., the victim, Dwayne Brisbon, 33, was stabbed to death in the 400 block of Florida Avenue NW. Mr. Brisbon, a CT scan technician at Washington Hospital Center, was on his way home from Marvin, a bar and restaurant in the 2000 block of 14th Street NW. On his way home, Mr. Brisbon pulled his car over to check on a person he recognized from the establishment.
Dawkins, who was walking with the person, became upset and aggressively approached Mr. Brisbon’s car. Dawkins began arguing with Mr. Brisbon. Mr. Brisbon eventually got out of his car and walked to the rear of the car, where Dawkins met him. Mr. Brisbon punched Dawkins, and the two continued to fight. During the fight, Dawkins stabbed Mr. Brisbon in the upper left bicep and the neck, piercing his carotid artery and jugular vein.
Dawkins then fled the scene while Mr. Brisbon got back in his car in an attempt to drive himself to the hospital. Mr. Brisbon lost consciousness within seconds, and crashed into Shaw’s Tavern in the 500 block of Florida Avenue NW. Surveillance video from Shaw’s Tavern captured the defendant and the person who was with him just minutes before the murder.
In announcing the sentence, U.S. Attorney Machen commended the work of members of the Metropolitan Police Department, who investigated the case. U.S. Attorney Machen also thanked those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Mia Beamon and Kelly Blakeney; Victim/Witness Services Coordinators La June Thames and Katina Adams-Washington; Litigation Support Specialist Kimberly Smith; Criminal Investigator Durand Odom; and Victim Witness Specialist Tamara Ince. Finally, U.S. Attorney Machen expressed appreciation for the work of Assistant U.S. Attorney Veronica Sanchez and former Assistant U.S. Attorney Holly Shick, who prosecuted the case.
14-178Detroit Man Indicted for Stealing $16,000 Worth of Merchandise from Stores Throughout OhioRead the Press Release
A Detroit man was indicted on 46 counts in federal court related to a scheme in which he stole at least $16,000 worth of merchanside from Lowe's and Home Depot stores in the Cleveland and Toledo areas and then returned the stolen items for store credit, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Larry Darnell Frazier, 56, was indicted on 45 counts of wire fraud and one count of transporting fraudulently obtained property in interstate commerce.
Frazier placed small, expensive items, including rough plumbing and electrical items, inside large outdoor lighting boxes. He purchased the lighting boxes with the smaller items concealed inside. He went to other stores and returned the lighting, for which he had a receipt, for a refund and the stolen items, for which he did not have a receipt, for store credit, according to the indictment.
Frazier did this at stores in Toledo, Perryburg, Fairlawn, Strongsville, Streetsboro, Elyria, Rocky River, Avon, Lorain, Sandusky, Sylvania, and elsewhere, according to the indictment. He returned stolen merchandise at least 45 times and got more than $16,000 in store credit for the merchandise, according to the information.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the United States Secret Service, Toledo, Ohio. The case is being handled by Assistant United States Attorney Noah P. Hood.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Chiropractor and Office Assistant Sentenced in Staged Automobile Accident SchemeRead the Press Release
92 defendants have been charged to date in Operation Sledgehammer I-VI
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Jeff Atwater, Florida Chief Financial Officer, Florida Department of Financial Services, and Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, announce that Lawrence Schechtman, 45, chiropractor, of Parkland, and Sircy Sacerio, a/k/a “Sisi” a/k/a “Sircy Santos”, 31, receptionist and office assistant, of Palm Springs, were sentenced today by U.S. District Judge Kenneth A. Marra for their participation in an automobile insurance fraud scheme involving staged automobile accidents.
Schechtman was sentenced to 52 months in prison, to be followed by two years of supervised release, and was ordered to pay $2,446,906.79 in restitution. Sacerio was sentenced to 48 months in prison, to be followed by two years of supervised release, and was ordered to pay $1,146,824.26 in restitution. Both defendants previously pled guilty to one count of conspiracy to commit mail fraud, in violation of Title 18, United States Code, Section 1341, all in violation of Title 18, United States Code, Section 1349. Schechtman also pled guilty to four counts of mail fraud, and Sacerio also pled guilty to five counts of mail fraud, in violation of Title 18, United States Code, Sections 1341 and 2.
According to court documents, between approximately October 2006 and December 2012, the conspiracy members staged automobile accidents by recruiting individuals to participate in the accidents. The participants were referred to as “Perro” and “Perra” or “Macho” and “Hembra.” Thereafter, the clinic owners caused the submission of false insurance claims through chiropractic clinics that were controlled by members of the conspiracy. To execute the scheme, the true owners of the chiropractic clinics recruited individuals who had the medical or chiropractic licenses required by the state to open a clinic, including Schechtman, to act as “nominee owners” of the clinics. The co-conspirators also hired complicit licensed chiropractors, including Schechtman, who prescribed and billed for unnecessary treatments and/or for services that had not been rendered. Thereafter, complicit clinic employees, including Sacerio, prepared and submitted claims to the automobile insurance companies for payment for these unnecessary or non-rendered services. Twenty-one clinics participated in this scheme.
Starting with Operation Sledgehammer I in June 2011 and including the defendants charged in Operation Sledgehammer VI, 92 defendants have been charged for their participation in this automobile insurance fraud scheme. Of those 92 defendants, 56 have been charged federally by the U.S. Attorney's Office, resulting in court-ordered restitution of more than $5 million to the defrauded insurance companies. Thirty-six defendants have been charged by the Palm Beach County State Attorney's Office.
Mr. Ferrer commended the efforts of the FBI, IRS-CI, the Florida Department of Insurance Fraud, the Palm Beach County State Attorney's Office, and the Greater Palm Beach County Health Care Fraud Task Force for their outstanding work in this case. Mr. Ferrer also recognized the National Insurance Crime Bureau (NICB) for its collaboration and assistance in this investigation. The federal cases are being prosecuted by Assistant U.S. Attorney A. Marie Villafaña and the state cases are being prosecuted by the Palm Beach County State Attorney's Office.
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.
Central Falls Resident on Probation for Robbery Ordered Detained in Federal Custody for Allegedly Trafficking Crack CocaineRead the Press Release
PROVIDENCE, R.I. – A joint investigation by ATF agents and Central Falls Police has resulted in the arrest and detention of a Central Falls resident for allegedly trafficking crack cocaine and the seizure of more than 128 grams of crack cocaine, announced United States Attorney Peter F. Neronha, Daniel J. Kumor, Special Agent in Charge of the Boston Field Divisionof ATF, and Central Falls Police Chief Colonel James J. Mendonca.
Richard Palmisano, 39, was ordered detained by U.S. District Court Magistrate Judge Patricia A. Sullivan on Thursday on charges of possession of 28 grams or more of crack cocaine and possession of 28 grams or more of crack cocaine with the intent to distribute. According to information presented to the court, at the time of his arrest Palmisano was serving a term of probation on sentences imposed previously in Rhode Island state court on convictions of first and second degree robbery.According to an affidavit in support of a criminal complaint filed with the court, an investigation by ATF agents and Central Falls Police into Palmisano’s alleged drug trafficking activities allegedly included five separate purchases of crack cocaine between April 24 and July 18, 2014, from Palmisano of between 7.45 grams and more than 31grams of crack cocaine for between $400 and $1,700.
According to the affidavit, it is alleged that the undercover ATF agent continued to communicate with Palmisano, and on July 22, 2014, the agent received a text message allegedly from Palmisano which stated, “Yo let me know if u need something?” The agent subsequently arranged a purchase of 31 grams of crack cocaine, which was to have occurred yesterday.
According to information presented to the court, ATF agents and Central Falls Police arrested Palmisano on Thursday as he arrived for a scheduled appointment in Pawtucket. A court authorized search of Palmisano’s Central Falls residence on Thursday by ATF agents and Central Falls Police, with the assistance of Rhode Island State Police and Providence Police, resulted in the seizure of the 31 grams of crack cocaine that was to have allegedly been sold to the undercover agent.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Canal Fulton Man Charged for Drug ConspiracyRead the Press Release
A one-count criminal information was filed charging Brent A. Horvath, 25, of Canal Fulton, Ohio, with conspiracy to distribute and possess with the intent to distribute marijuana, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The information alleges that from in or about the winter of 2011 through February 2014, Horvath and others conspired to distribute and possess with the intent to distribute more than 50 kilograms of marijuana.
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including a defendant’s prior criminal record, if any, a defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the information was conducted by the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Samuel A. Yannucci.
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.
CEO of Broker-Dealer Charged in Manhattan Federal Court with Obstructing Regulatory Examination by Producing False Invoices to SEC Exam Team, and with Making False Statements and False Filings Related to Net CapitalRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Philip R. Bartlett, Inspector in Charge of the United States Postal Inspection Service (“USPIS”), and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced that CHARLES J. MOORE was arrested this morning and charged with obstructing a regulatory examination and making false statements and false filings. As alleged, MOORE repeatedly caused the broker-dealer firm Crucible Capital Group, Inc. (“Crucible”), which he controlled, to report its net capital above the threshold mandated by Securities and Exchange Commission (“SEC”) regulations, when, in fact, the firm had a net capital deficiency. MOORE is also alleged to have supported these false filings by directing a Crucible employee to falsify invoices received from vendors by removing references to past-due balances, and deliver the falsified invoices to SEC employees conducting a regulatory examination of Crucible. MOORE was arrested this morning at Crucible’s offices at 27 Whitehall Street in Manhattan, and will be presented before U.S. Magistrate Judge Sarah Netburn this afternoon.
Manhattan U.S. Attorney Preet Bharara said: “The SEC is entitled to the truth when it examines the books and records of institutions as it seeks to protect investors and our markets. Broker-dealers, from large institutions to boutique firms, have a duty to make accurate financial reports. As the charges set forth, Charles Moore attempted to blow smoke in the eyes of the SEC, which was also an attempt to deceive his clients, and such charges come with appropriately hefty maximum sentences.”
USPIS Inspector in Charge Philip R. Bartlett said: “The idea that Mr. Moore allegedly concocted a scheme to provide false documentation to a government agency and believe it would go unnoticed is a crime of great arrogance. Postal Inspectors along with their law enforcement partners have no tolerance for anyone who breaks the law.”
FBI Assistant Director-in-Charge George Venizelos said: “As alleged, Moore deliberately tried to hide debts on required SEC reports for almost eight months and then when the SEC was looking into it, he further tried to hide his lies and actions by directing employees to create falsified invoices and use personal email accounts to cover his trail. Lies and cover-ups are not an acceptable way for a chief executive officer to act. The FBI will continue to investigate this type of illegal conduct and prosecute those who violate our laws.”
According to the Complaint unsealed today:
MOORE was at all relevant times the Chief Executive Officer of Crucible, an SEC-registered broker-dealer that maintained no customer securities trading accounts, but held itself out as a “boutique” investment bank helping small businesses to raise capital and financing. Crucible used its status as an SEC-registered broker-dealer to solicit business.
MOORE was also at all relevant times the CEO of an affiliated company, Angelic Holdings LLC (“Angelic”), which was not registered with the SEC and conducted “due diligence” for Crucible-related business. Crucible and Angelic shared employees and office space. They also shared expenses, under an agreement that had Crucible paying Angelic a monthly fee and Angelic paying vendors of certain specified services on behalf of both Angelic and Crucible.
As an SEC-registered broker-dealer that maintained no customer accounts, Crucible was required to maintain net capital of at least $5,000 at all times. It was also required to file monthly “FOCUS” reports with the SEC reporting its net capital. Finally, Crucible was required to preserve and archive its business-related emails for review by the SEC upon request.
From in or about February 2013 through in or about September 2013, MOORE caused Crucible to file false FOCUS reports that failed to account for certain large debts. These debts, although nominally owed by Angelic, were required by SEC regulation and guidance to have been incorporated into Crucible’s net capital computation. Had they been so incorporated, Crucible would have been required to report a net capital deficiency throughout much of 2013.
In the fall of 2013, the SEC opened a regulatory examination of Crucible to explore, among other things, the accuracy of Crucible’s net capital reporting. As part of that examination, the SEC requested all 2013 invoices to Angelic for Crucible-related expenses.
MOORE, responding to this request, caused a Crucible employee to create falsified invoices to deliver to the SEC. Specifically, he directed the employee to take original invoices that had been sent to Crucible personnel, and create versions of those invoices that omitted references to large, unpaid debts appearing on the originals. MOORE then caused the employee to hand the falsified invoices to the SEC.
Finally, throughout 2013, MOORE tried to hide the truth about Crucible’s net capital and its outstanding debts by directing – in flagrant breach of regulatory requirements and his own firm’s compliance policy – that all correspondence with professionals involved in Crucible’s and Angelic’s finances take place not over Crucible’s business email accounts but instead over MOORE’s own and his employees’ personal email accounts. Many of the original invoices that MOORE directed his employee to falsify before furnishing to the SEC in the fall of 2013 had, at MOORE’s instruction, been sent by the vendor to a Gmail account belonging to a Crucible employee.
MOORE, 62, is charged with obstructing a regulatory examination, making false statements, and falsifying and failing to keep required books and records of a broker-dealer. The obstruction and falsifying records counts each carry a maximum sentence of 20 years in prison. The false statement charge carries a maximum sentence of five years in prison.
Mr. Bharara praised the investigative work of the USPIS and the FBI and thanked the SEC, which has filed civil charges in a separate action.
This case is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Sarah E. McCallum and Andrew B. Bauer are in charge of the prosecution.
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.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Charles Moore Complaint
Bridgeport Police Officer Charged with Federal Civil Rights ViolationRead the Press Release
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Deirdre M, Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury sitting in New Haven has returned an indictment charging Bridgeport Police officer CLIVE HIGGINS with violating an individual’s civil rights by using unreasonable force during the course of an arrest.
The indictment was returned yesterday. HIGGINS, 48, is expected to appear today at 2:30 p.m. before U.S. Magistrate Judge Joan G. Margolis in New Haven.
As alleged in the indictment, HIGGINS has been an officer with the Bridgeport Police Department since 2002. On May 20, 2011, two other Bridgeport Police officers engaged in a pursuit of a van driven by an individual who was suspected of having a firearm. During the vehicle pursuit, HIGGINS heard radio transmissions indicating the pursuing officers were seeking back-up. As the pursuit approached Beardsley Park and the sector HIGGINS was assigned, HIGGINS responded. The vehicle pursuit ended in an open field in Beardsley Park prior to HIGGINS’s arrival. The individual fled from the van and was pursued a short distance by the two officers. One of the officers deployed his department-issued Taser and effectively incapacitated the individual. HIGGINS then arrived at the scene, exited his police cruiser, approached the individual who was lying prone on the ground, and kicked him in the head and neck area.
If convicted, HIGGINS faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorneys Anastasia E. King and David E. Novick.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
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(203) 821-3722 [email protected]Bowie Man Sentenced for Attempting to Obtain over $500,000 in Fraudulent Car Loans from Credit UnionsRead the Press Release
Recruited At Least Nine Others to Submit the Fraudulent Loan Applications
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Duane Akuffo, age 28, of Bowie, Maryland, today to two years in prison for bank fraud, in connection with a scheme to obtain more than $500,000 in fraudulent car loans from credit unions. Judge Blake also entered an order that Akuffo forfeit $357,356.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to his plea agreement, from June 2010 to August 2012, Akuffo presented automobile loan applications to credit unions which falsely represented that the automobile which the applicant was purchasing was a luxury automobile, and contained false information about the applicants’ income and employment. Akuffo also submitted fraudulent pay stubs, “Used Vehicle Buyers Orders,” and verifications of insurance. Akuffo submitted numerous applications in his own name, but he also recruited at least nine others to submit the loan applications. At least 17 loan applications were submitted, seeking a total of $534,276.
Relying on the materially false representations, the credit unions issued loans totaling $357,356 to the applicants. Once these funds were disbursed to the applicant, a portion of the loan proceeds was given to Akuffo and others involved in scheme. The applicant often made several payments on the purported automobile loan in order to make the loan appear legitimate. Eventually, the applicant would default on the loan, causing a loss to the credit union.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant United States Attorney David I. Sharfstein, who prosecuted the case.
Bel Air Heroin Dealer Sentenced to 12 Years in PrisonRead the Press Release
Planned to Distribute Heroin in Harford County
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Darryl Malloy, age 32, of Bel Air, Maryland today to 12 years in prison, followed by four years of supervised release, for possession with intent to distribute 100 grams or more of heroin. Judge Hollander ordered that Malloy’s federal sentence is to be concurrent to the 20 year sentence, all but eight years suspended, that he is currently serving on unrelated state charges.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and the members of the Harford County Narcotics Task Force: Harford County Sheriff L. Jesse Bane, Colonel Marcus L. Brown, Superintendent of the Maryland State Police, Chief Henry Trabert of the Aberdeen Police Department, Bel Air Police Chief Leo Matrangola, Chief Teresa Walter of the Havre de Grace Police Department, and Harford County State’s Attorney Joseph I. Cassilly.
According to Malloy’s plea agreement, on November 15, 2013, Malloy purchased more than 100 grams of heroin in Towson, Maryland, and transported it to a motel in Edgewood, Maryland, where Malloy was staying. Malloy admitted that he intended to divide the heroin into smaller quantities and package it for distribution.
United States Attorney Rod J. Rosenstein praised the DEA and Harford County Narcotics Task Force for their work in the investigation and thanked Assistant U.S. Attorneys Leo J. Wise and Brooke Carey, who prosecuted the case.Another Pill-Mill Doctors Sentenced to over A Decade in Federal PrisonRead the Press Release
In total, 10 defendants sentenced and $2 million forfeited relating to the prosecution of a phony pain clinic in Garden City, Georgia
SAVANNAH, GA – DR. NAJAM AZMAT, 57, of Waycross, Georgia, was sentenced in the United States District Court on August 6, 2014 to serve 11 years and 1 month in prison. On January 17, 2014, a federal jury found AZMAT guilty of numerous offenses related to his role in a pill mill clinic that operated in Garden City, Georgia in 2011. The offenses of which AZMAT was found guilty included conspiracy to dispense oxycodone and other drugs without legitimate medical purpose, 49 counts of dispensing without legitimate medical purpose, and conspiracy to launder money. United States District Court Judge William T. Moore, Jr. presided over AZMAT’s five-day jury trial and imposed his sentence.
According to evidence presented at the trial, AZMAT worked at East Health Center from February 21 to March 18, 2011. During that time, AZMAT wrote prescriptions for 196 patients, 96% of whom received prescriptions for oxycodone, a powerful and highly addictive pain killer. Nearly two-thirds of the patients seen by AZMAT traveled long distances to receive their prescriptions, often coming from Kentucky, Ohio, and Florida. Patients typically paid $300 to be seen by AZMAT or one of the other doctors who worked at East Health Center following AZMAT’s departure on March 18, 2011. During the trial, patients testified that they were addicted to oxycodone and learned of the clinic through aggressive marketing techniques conducted by the clinic organizers at rival pill-mill clinics in Florida. AZMAT was paid $2,000 per day, typically in cash, at the end of each day he worked.
AZMAT was indicted with five co-defendants, each of whom was recently sentenced to terms of imprisonment by Judge Moore on the dates indicated:
Sean Michael Clark, 34, Boca Raton, Florida (Conspiracy) 40 months on August 1; Adelaida M. Lizama, 28, Boca Raton, Florida (Conspiracy) 18 months on August 4; Daniel John Wise, 35, West Palm Beach, Florida (Conspiracy) 42 months on July 30; Candace A. Carreras, 27, Boca Raton, Florida (Conspiracy) 24 months on August 4; Shelly Lynn Morford, 32, Fort Lauderdale, Florida (Misprision of Felony) 13 months on July 9.
In addition to the defendants named in the indictment, other targets of the investigation previously pleaded guilty to offenses related to the phony pain clinic operation have also been sentenced by Judge Moore:
Adelard LeFrancois III, 44, Boca Raton, Florida (Conspiracy) 54 months on July 30; Francis J. Barbuscia, 38, Plantation, Florida, (Conspiracy) 42 months on July 30; Konstantinos Afthinos, 34, Lake Worth, Florida (Misprision of Felony) 15 months on August 1; Dr. Kenneth Gossett, 53, Rome, Georgia, (Conspiracy) 42 months on August 1.
Nuvest LLC, a Florida corporation which financed the startup costs for East Health Center, pleaded guilty to maintaining drug-involved premises. The corporation, which provided the funds used to launch and operate the clinic, admitted that the clinic was opened for the purpose of dispensing oxycodone, hydrocodone, and other drugs without legitimate medical purpose. As part of a plea agreement, the corporation forfeited the sum of $2 million, representing proceeds of unlawful activity laundered by the corporation.
Eight of the other nine defendants, who either organized or worked for the clinic, had never had any medical education, training, or experience aside from having been associated with earlier pill-mill operations in South Florida. The organizers decided to open the clinic in Garden City because of changes in Florida law which restricted non-medical doctors from owning pain clinics. None had any connection to the State of Georgia before opening the clinic.
United States Attorney Edward Tarver said, “The United States Attorney’s Office, in partnership with federal, state, and local investigative agencies, will continue to aggressively prosecute the participants in illegitimate pain clinics. These pill-mills prey upon their so-called ‘patients’ by draining them of time and assets, fueling their drug addictions, and depriving them of legitimate medical treatment. As we have demonstrated through numerous prosecutions in the last 2 years, our intention is to shut down these pill mills, prosecute the participants, and forfeit their illegal proceeds. I trust a strong message of warning has been sent to anyone considering such unlawful ventures in the Southern District of Georgia.”
The investigation of East Health Center resulted from a joint investigation by the Drug Enforcement Administration (DEA), Georgia Bureau of Investigation (GBI), Chatham Savannah Counter Narcotics Team (CNT), the Internal Revenue Service (IRS), and the United States Marshals Service.
Harry S. Sommers, the Special Agent in Charge of the DEA’s Atlanta Field Division stated, “The dispensing of addictive prescription pain medication under the guise of a doctor’s care is not about the good of the community or an individual’s specific health needs; in this case, it was about the greed of a physician who oversaw the operations of this pill mill. DEA and its law enforcement partners will continue to expend their time, energy, and resources in an effort to stem the tide against the growing prescription drug abuse problem.”
“The resolution of the Azmat case is a good example of the positive results that occur when state and federal agencies combine efforts in addressing the illegal distribution of narcotics,” said Scott Whitley, Special Agent in Charge of the GBI Southeastern Regional Drug Enforcement Office. “The abuse of prescription narcotics is a critical issue which the GBI remains committed to addressing in various ways. These include the investigation of rogue medical offices which exist for the sole purpose of the illegal distribution of controlled narcotics.”
Chatham Savannah Counter Narcotics Team Director Dwane E. Ragan noted, “The investigation and prosecution of the East Health Center is a classic example of local, state, and federal agencies working together to dismantle an organization who preyed upon the weakness and addictions of many of our citizens. The successful prosecution of this case eliminated a notorious pill mill from our community.”
“Those individuals who line their pockets with money gained through preying on so-called patients will not go undetected and will be held accountable,” stated Special Agent in Charge, Veronica F. Hyman-Pillot. “The Azmat sentence is a vital element in maintaining public confidence that these individuals and others who commit similar crimes will be held accountable.”
Assistant United States Attorneys Karl Knoche, Greg Gilluly, and Jeffrey Buerstatte prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Activity for August 8, 2014Read the Press Release
Northern Arapaho Man Sentenced For Assault with a Dangerous Weapon with Intent to do Bodily Harm
United States Attorney Christopher A. Crofts announced today that on August 6, 2014, Matthew Lawrence Antelope, a 30-year-old enrolled Northern Arapaho man from Ethete, Wyoming, appeared in Federal District Court in Casper, Wyoming for sentencing before United States District Judge Scott W. Skavdahl on the charge of Assault with a Dangerous Weapon with Intent to do Bodily Harm, in violation of 18 U.S.C. '' 113(a)(3) and 1153. Antelope received 51 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $1,994.00. The charge stemmed from a stabbing incident which occurred on January 28, 2014, on the Wind River Indian Reservation. The case was investigated by the Federal Bureau of Investigation with substantial assistance from the Bureau of Indian Affairs.
Northern Arapaho Man Sentenced For Assault with a Dangerous Weapon with Intent to do Bodily Harm
United States Attorney Christopher A. Crofts announced today that on August 6, 2014, Dustin James Friday, a 24-year-old enrolled Northern Arapaho man, appeared in Federal District Court in Casper, Wyoming for sentencing before United States District Judge Scott W. Skavdahl on the charge of Assault with a Dangerous Weapon with Intent to do Bodily Harm, in violation of 18 U.S.C. '' 113(a)(3) and 1153. Friday received 15 months imprisonment, to be followed by two years of supervised release, and was ordered to pay a $100.00 special assessment. The charge stemmed from a strangulation assault which occurred on January 14, 2014, on the Wind River Indian Reservation. The case was investigated by the Federal Bureau of Investigation with substantial assistance from the Bureau of Indian Affairs.
ATF Arrests Seven Talladega County Residents on Gun or Drug Charges Nine Talladega County Residents Indicted for Drugs or Guns in JulyRead the Press Release
BIRMINGHAM -- Federal agents today arrested seven people in Talladega County on drug and gun charges, announced U.S. Attorney Joyce White Vance and Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Jeffrey L. Fulton.
The seven arrested today are among nine defendants from the east-central Alabama county charged with firearms or drug distribution offenses in eight separate July indictments. The two men who were already in custody are CHANCY BERRY TEMPLE, 28, of Talladega, and CHRISTOPHER MURRAY, 30, of Childersburg. Both are charged as convicted felons in possession of a firearm.
The seven arrested today and their charges are: • MAREAO CITRON SEARS, 24, of Sylacauga, conspiracy to distribute narcotics.
• JERMAINE MORRIS, 41, of Sylacauga, conspiracy to distribute narcotics and convicted felon in possession of a firearm.
• TERRELL ALPHONSO MCELRATH, 29, of Sylacauga, felon in possession of a firearm.
• JULIAN ARTHUR HARRIS, 25, of Talladega, felon in possession of a firearm.
• JUSTIN KIRKLAND, 24, Sylacauga, possession with intent to distribute crack cocaine, and carrying a firearm during a drug-trafficking offense.
• TRAVIS LEVERT CHATMAN, 35, of Talladega, felon in possession of a firearm.
• MELTRONE SHUNTANG SEARS, 31, of Sylacauga, distribution of narcotics.
Morris and Mareao Sears are charged in the same indictment with conspiracy to distribute crack cocaine in Talladega County.
The maximum penalty for conspiracy to distribute narcotics is 20 years in prison and a $5 million fine. The maximum penalty for being a convicted felon in possession of a firearm is 10 years in prison and a $250,000 fine.
The maximum penalty for possession with intent to distribute crack cocaine is 20 years in prison and a $1 million fine. Carrying a firearm in relation to a drug-trafficking offense carries a sentence of at least five years in prison, consecutive to any other sentence imposed for the crime, and a possible $250,000 fine.
Illegal distribution of narcotics carries a maximum penalty of 20 years in prison and $1 million fine.
ATF, the Drug Enforcement Administration and the Talladega County Drug Task Force investigated the cases, which the U.S. Attorney's Office for the Northern District of Alabama is prosecuting.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.32 WIC Participants Convicted for Selling Their WIC Vouchers for CashRead the Press Release
SAVANNAH, GA – 32 participants in the Georgia Women, Infant, and Children (“WIC”) Program pled guilty and were sentenced this week before United States Magistrate Judge James E. Graham for their roles in selling their WIC vouchers and the vouchers of their minor children for cash.
According to evidence presented during the guilty plea and sentencing hearings held earlier this week in Statesboro, Georgia, the WIC program is a federally funded program that provides healthy foods for low-income pregnant and postpartum women, and to infants and children up to age 5. Participants of the program receive food vouchers from local health clinics. These vouchers are designed to provide nutritious food to help the mothers and children who are deemed nutritionally at risk. In this case, the defendants sold their WIC vouchers and those of their minor children for cash to individuals working for Super Kids Variety, a phony grocery store formerly located on Victory Drive in Savannah. Workers for Super Kids Variety would pay pennies on the dollar for WIC vouchers; the vouchers would then be submitted to the U. S. Department of Agriculture for the full amount as if the healthy foods had been provided to the WIC participants. From July 2011 through December 2012, Super Kids Variety redeemed $2.6 million in WIC vouchers. During that same time period, the 4 WIC-eligible Wal-Marts located in the Savannah area redeemed only $1.4 million.
The 32 WIC participants were indicted in June of this year, following a 2-year investigation. Also in June, 54 defendants, including those who worked for Super Kids Variety, were indicted for allegedly opening numerous phony grocery stores across Georgia and defrauding the WIC and Food Stamp programs of over $19 million. This case is still pending.
United States Attorney Edward Tarver said, “Federal food programs are paid for by federal taxpayers and are designed to help those in need. These defendants chose to help themselves and to literally take food from the mouths of children. Buyers and sellers of WIC vouchers and food stamps beware; you will face federal criminal charges and pay the price for your crimes.”
Georgia Department of Public Health Commissioner Brenda Fitzgerald, M.D. stated, “The Georgia Department of Public Health (DPH) supports this U. S. Attorney’s ongoing work to eliminate WIC fraud wherever it happens. The progress prosecutors are making is a clear indication that, together, our partnership is working for Georgia. The convictions handed down should serve as a clear warning to anyone looking to defraud Georgia’s WIC program that fraud doesn’t pay. Criminals will be caught and prosecuted.”
Sentences for the 32 convicted WIC participants, all residents of Savannah, ranged from probation, to house arrest, to prison. All of the defendants were ordered to perform community service and to pay the full amount of restitution for the WIC vouchers they unlawfully sold. These 32 defendants alone were responsible for unlawfully selling over $100,000 in WIC vouchers. The convicted WIC participants included:
Chiquita Armstead, 40
Yontalay Bennett, 28
Precious Bevins, 24
Shanika Blige, 23
Deanna Boles, 23
Candace Bostick, 23
Danitra Bostick, 26
Tia Bowers, 25
Tonya Clark, 41
Jocelyn Easterling, 49
Deonka Ellison, 24
Ebony Ellison, 27
Joanne Ferguson, 43
Tameshia Jackson, 24
Koneisha Jenkins, 26
Latisha Jones, 30
Jameise’ Mayberry, 23
Quinta Meggett-Mike, 37
Ebony Roberson, 26
Shakiela Roberts, 28
Jasmine Sammuel, 24
Deanna Scott, 25
Whitney Stokes, 25
Regina Styles, 22
Hope Taylor, 33
Ebonilaestei Tremble, 34
Linda Walker, 22
Tiera Walthour, 23
Alexis Washington, 26
Rhonda Washington, 32
Amber Wilson, 23
Ke’airra Young, 24The cases were investigated by the United States Department of Agriculture, Office of Inspector General, the Georgia Department of Public Health, Office of Inspector General, the FBI, and other law enforcement agencies. Assistant United States Attorney E. Gregory Gilluly and First Assistant United States Attorney James D. Durham prosecuted the cases on behalf of the United States.
7 August 2014
Wyatt Detention Facility Detainee Sentenced to 2 Years in Prison for Possession of Makeshift WeaponRead the Press Release
PROVIDENCE, R.I. – Ernesto Monell, 36, formerly of Taunton, Mass., was sentenced on Wednesday to 24 months in federal prison, having been convicted by a federal court jury in Providence on May 20, 2014, of being in possession of contraband - a makeshift weapon, while incarcerated at the Donald W. Wyatt Detention Facility in Central Falls, R.I., announced United States Attorney Peter F. Neronha and United States Marshal Jamie A. Hainsworth.
The sentence was imposed by United States District Court Chief Judge William E. Smith.
According to the government’s evidence presented to the jury, on August 16, 2013, correctional officers at the Wyatt Detention Facility observed a disturbance involving numerous detainees. Monell was observed attacking two or more detainees using a homemade weapon/shank. The disturbance, which was recorded on the facility’s video surveillance system, shows Monell holding an object in his hand and swinging his arm in a stabbing type motion.
According to the government’s evidence, the correctional staff brought the situation under control by using chemical spray, and noted that Monell suffered injuries to his hand consistent with holding a makeshift type weapon. A search was undertaken and a makeshift weapon/shank was recovered from a second tier waste can. A correctional officer who first observed the disturbance break out identified the item as the weapon Monell was using to carry out his assaults.
Detainees who were seen on the video being struck by Monell were examined and found to have puncture and scratch like injuries consistent with having been inflicted by the shank.
Four days after being convicted in U.S. District Court in Providence for being in possession of contraband - a makeshift weapon, Monell was sentenced in U.S. District Court in Boston to 262 months in prison for being a felon in possession of a firearm and possession of cocaine base with the intent to distribute. In that case, Monell was arrested by Fall River Police on February 16, 2012, after a court authorized search of his residence resulted in the seizure of, among other things, a loaded firearm, a shotgun and a substantial amount of crack cocaine. When police arrived at Monell’s residence to execute a court authorized search warrant they found Monell’s apartment door barricaded. Police forced their way in and came upon Monell, who was holding a loaded pistol. He was apprehended without further incident.
The case in federal court in Providence was prosecuted by Assistant U.S. Attorney William J. Ferland.
The matter was investigated by the Wyatt Detention Center Investigative Unit, with the assistance of the United States Marshals Service.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Wounded Knee Man Sentenced for LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wounded Knee, South Dakota, man convicted of Larceny was sentenced on July 30, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Eugene Hunts Horses, Jr., a/k/a Eugene Hunts Horse, age 43, was sentenced to 1 year of probation, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund and restitution in the amount of $2,200.
Hunts Horses was indicted for Larceny by a federal grand jury on February 19, 2014. He pled guilty on March 28, 2014.
The conviction stemmed from Hunts Horses and another man shooting a pregnant cow and killing it on February 9, 2013, near Manderson.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Webb City Man Pleads Guilty to Failed Attempt to Receive Tornado BenefitsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Webb City, Mo., man pleaded guilty in federal court today to making false statements to the Federal Emergency Management Agency (FEMA) in a failed attempt to fraudulently receive federal disaster benefits following the tornado that struck the city of Joplin, Mo., on May 22, 2011, killing 158 people and causing more than $2.9 billion in damage.
Russell Lamar Green, 35, of Webb City, pleaded guilty before U.S. Magistrate Judge David P. Rush to one count of making false statements to FEMA.
By pleading guilty today, Green admitted that he claimed on a July 5, 2011, FEMA application for disaster assistance that his primary residence in Joplin had been damaged by the tornado. When he met with a FEMA-contracted inspector to discuss his claim, Green also claimed that he lost a television, radio, portable space heater, microwave, humidifier, electric fan and clothing as a result of the tornado.
However, Green admitted today that he was not living at the apartment at the time of the tornado. Green’s girlfriend had rented the apartment prior to the Joplin tornado, but she moved out before the tornado struck. There was no financial loss to FEMA, because Green’s fraud was detected before the false claim was paid.
Under federal statutes, Green is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the U.S. Department of Homeland Security – Office of Inspector General, the FBI and the Joplin, Mo., Police Department.
Disaster Fraud Hotline
Anyone with information about disaster fraud related to the Joplin tornado should call the National Center for Disaster Fraud hotline at 866-720-5721, the Joplin Police Department at 417-623-3131, or the FBI’s Joplin office at 417-206-5700.
Waterbury Man Charged with Illegal Gun PossessionRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury sitting in New Haven returned an indictment today charging CHRISTOPHER BYAN COLEMAN, 25, of Waterbury, with possession of a firearm by a convicted felon.
As alleged in the complaint that was previously filed in this case, on April 22, 2014, officers from the Waterbury Police Department responded to a complaint of a disturbance at 1298 N. Main Street in Waterbury. There, the complainant told police that her car had broken down and, while she was awaiting assistance, a male had attempted to gain entry to her vehicle. As one of the officers drove up to the male, who was later identified as COLEMAN, the officer observed COLEMAN remove a firearm from his waist area and throw it over a chain link fence. Officers then recovered an RG14 .22 caliber revolver with an obliterated serial number, loaded with six rounds, three of which were live and three of which were expended.
Prior to that date, it is alleged that COLEMAN had sustained felony convictions. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
If convicted, COLEMAN faces a maximum term of imprisonment of 10 years and a fine of up to $250,000 in fines. He has been detained since his arrest on April 22.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Waterbury Police Department. This case is being prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
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(203) 821-3722 [email protected]Washington Men Convicted of Meth OffensesRead the Press Release
The United States Attorney's Office announced that on August 6, 2014, a federal jury found Hector Magallon-Lopez, a 25-year-old resident of Toppenish Valley, Washington, and Cristobal Sanchez-Chavez, a 36-year-old resident of Union Gap, Washington, guilty of conspiracy to possess with intent to distribute methamphetamine. Magallon-Lopez was found guilty of an additional count of possession with intent to distribute methamphetamine. Both defendants are being detained pending their sentencing, which has not yet been set by the court.
During the trial, the Government, represented by Assistant United States Attorneys Brendan McCarthy and Tara Elliot, presented evidence that on September 26 and 27, 2012, members of the St. Louis Drug Enforcement Agency (DEA) contacted members of DEA Billings regarding the drug trafficking activities of an organization out of Washington which was trafficking methamphetamine to St. Louis, Missouri. The St. Louis DEA intercepted several phone calls indicating that a Juan Sanchez-Hernandez and a Hector Magallon-Lopez were going to be transporting a large amount of methamphetamine from Washington to Minnesota.
On September 28, 2012, members of the Billings DEA and the Missouri River Drug Task Force (MRDTF) conducted surveillance near Three Forks and identified a vehicle occupied by two Hispanic males. A Montana Highway Patrolman initiated a traffic stop on the vehicle, which was registered to Magallon-Lopez at an address in Toppenish, Washington. The vehicle matched a description of a vehicle that was described on the wire. A wire allows law enforcement, with court approval, to intercept to telephone communications. The location of the vehicle was tracked by pinging the cell phone number from the wire.
During the stop, the Patrolman spoke with Magallon-Lopez, who stated that he was travelling from Washington to Minnesota to find work at a restaurant. Agents then requested a drug sniffing canine to inspect the vehicle. The first canine identified the odor of narcotics, and the car was brought to the Sweet Grass Sheriff's Office to conduct a search. However, agents learned that the canine's certification had lapsed. Therefore, agents requested a second canine to conduct a search. The second canine also indicated to the presence of narcotics in the vehicle.
Agents then applied for and were granted a search warrant to search the vehicle. During the search, agents recovered bags of methamphetamine hidden under the trunk area of the vehicle. The methamphetamine was later sent to the DEA Laboratory and the report indicates that there was approximately 975 grams of pure methamphetamine.
The case was investigated by the Drug Enforcement Administration.
Washington County Couple Sentenced to Federal Prison for Two YearsRead the Press Release
United States Attorney James L. Santelle of the Eastern Distirct of Wisconsin announced that Michael Stolp (age; 44) and Judith Stolp (age: 44) both of West Bend were sentenced to two years in federal prison by District Court Judge Charles N. Clevert for their roles in a conspiracy to illegally distribute Oxycodone.
The investigation revealed that Michael Stolp and Judith Stolp illegally sold up to 400 - 500 pills of Oxycodone a month to an individual, for a profit, and the pills would then be resold to others. The Oxycodone pills were obtained as a result of their illegal misuse of a valid prescription Michael Stolp had received for Oxycodone due to a back injury. Oxycodone is a Schedule II controlled substance.
The investigation was conducted by Drug Enforcement Administration and the Washington County Drug Enforcement Group. The case was prosecuted by Assistant United States Attorney Karine Moreno-Taxman.
Washington County Couple Sentenced to Federal Prison for Two YearsRead the Press Release
United States Attorney James L. Santelle of the Eastern Distirct of Wisconsin announced that Michael Stolp (age; 44) and Judith Stolp (age: 44) both of West Bend were sentenced to two years in federal prison by District Court Judge Charles N. Clevert for their roles in a conspiracy to illegally distribute Oxycodone.
The investigation revealed that Michael Stolp and Judith Stolp illegally sold up to 400 - 500 pills of Oxycodone a month to an individual, for a profit, and the pills would then be resold to others. The Oxycodone pills were obtained as a result of their illegal misuse of a valid prescription Michael Stolp had received for Oxycodone due to a back injury. Oxycodone is a Schedule II controlled substance.
The investigation was conducted by Drug Enforcement Administration and the Washington County Drug Enforcement Group. The case was prosecuted by Assistant United States Attorney Karine Moreno-Taxman.
Wagner Woman Sentenced to 151 Months for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wagner, South Dakota, woman convicted of Conspiracy to Distribute Methamphetamine was sentenced on July 28, 2014, by U.S. District Judge Karen E. Schreier.
Brandy Angela Waetermans, age 31, was sentenced to 151 months in custody, three years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Waetermans was indicted for Conspiracy to Distribute Methamphetamine by a federal grand jury on December 3, 2013. She pled guilty to the offense on April 29, 2014.
In 2013, Waetermans was involved in a conspiracy to distribute methamphetamine on the Yankton Sioux Reservation. Waetermans sold methamphetamine to a confidential source, and after her arrest admitted to playing a significant role in the conspiracy.
This case was investigated by the Federal Bureau of Investigation, South Dakota Division of Criminal Investigation, Bureau of Indian Affairs, and the Charles Mix County Sheriff’s Office. Special Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Waetermans was remanded to the custody of the U.S. Marshals Service.
Virginia Resident Pleads Guilty to Failing to Pay Employment TaxesRead the Press Release
Nureni Abayomi Baruwa, a resident of Alexandria, Virginia, pleaded guilty to employment tax fraud today, the Justice Department and Internal Revenue Service (IRS) announced.
According to the plea agreement and statement of facts, Baruwa operated a car detailing business called NAB International Group of Companies Inc. This business was incorporated by Baruwa in 1993 in the commonwealth of Virginia and he served as the president. Baruwa was in charge of withholding employment taxes from his employees’ wages, paying over the withheld amount to the IRS and reporting these amounts to the IRS by filing quarterly employment tax returns.
According to court documents, in all but three quarters, beginning with the first quarter of 2003 through the last quarter of 2010, Baruwa failed to timely collect, account for and pay the IRS the taxes withheld from his employees’ paychecks, as well as the employer’s portion of the employment taxes. Furthermore, in all but five quarters during the same period, Baruwa failed to file NAB’s quarterly employment tax returns with the IRS in a timely manner. Additionally, since at least 2006, Baruwa has failed to file an individual income tax return in a timely manner, despite the fact that he was legally required to do so annually. According to court documents, the tax loss is between $200,000 and $400,000, which will be determined by the court at Baruwa’s Oct. 24 sentencing.
This case was investigated by special agents of IRS-Criminal Investigation and is being prosecuted by Assistant Chief Caryn Finley of the department’s Tax Division and Assistant U.S. Attorney Uzo Asonye for the Eastern District of Virginia.
Additional information about the Tax Division and its enforcement efforts may be found on the division website .
Virginia Resident Pleads Guilty to Failing to Pay Employment TaxesRead the Press Release
WASHINGTON – Nureni Abayomi Baruwa, a resident of Alexandria, Virginia, pleaded guilty to employment tax fraud today, the Justice Department and Internal Revenue Service (IRS) announced.
According to the plea agreement and statement of facts, Baruwa operated a car detailing business called NAB International Group of Companies Inc. This business was incorporated by Baruwa in 1993 in the commonwealth of Virginia and he served as the president. Baruwa was in charge of withholding employment taxes from his employees’ wages, paying over the withheld amount to the IRS and reporting these amounts to the IRS by filing quarterly employment tax returns.
According to court documents, in all but three quarters, beginning with the first quarter of 2003 through the last quarter of 2010, Baruwa failed to timely collect, account for and pay the IRS the taxes withheld from his employees’ paychecks, as well as the employer’s portion of the employment taxes. Furthermore, in all but five quarters during the same period, Baruwa failed to file NAB’s quarterly employment tax returns with the IRS in a timely manner. Additionally, since at least 2006, Baruwa has failed to file an individual income tax return in a timely manner, despite the fact that he was legally required to do so annually. According to court documents, the tax loss is between $200,000 and $400,000, which will be determined by the court at Baruwa’s Oct. 24 sentencing.
This case was investigated by special agents of IRS-Criminal Investigation and is being prosecuted by Assistant Chief Caryn Finley of the department’s Tax Division and Assistant U.S. Attorney Uzo Asonye for the Eastern District of Virginia.
Additional information about the Tax Division and its enforcement efforts may be found on the division website.
Vallejo Man Indicted on Firearms ChargesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today, charging Tiandre Cook, 24, of Vallejo, with being a felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
According to court documents, Cook was arrested on July 12, 2014, and was found to be in possession of a Glock .357-caliber pistol, which had a round chambered and a 22 round high capacity magazine inserted. Cook is a previously convicted felon. He has been in custody since his arrest. His is scheduled to be arraigned on August 15, 2014 before Magistrate Judge Edmund F. Brennan.
This case is the product of an investigation by the FBI and the Vallejo Police Department. Assistant United States Attorney Olusere Olowoyeye is prosecuting the cases.
If convicted, Cook faces a maximum statutory sentence of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Vagos Outlaw Motorcycle Gang Investigation Leads to Four Drug Trafficking IndictmentsRead the Press Release
SACRAMENTO, Calif. — Members and associates of the Vagos Outlaw Motorcycle Gang have been indicted today for drug trafficking offenses in an ongoing FBI probe, United States Attorney Benjamin B. Wagner announced.
The first indictment charges James Cline, 43, of Rio Linda; Leonard Walter, 37, of Sacramento; Michael Wright, 45, of Sacramento, with conspiracy to distribute and possess with intent to distribute methamphetamine and distribution of methamphetamine.
Three separate indictments charge Sacramento residents Richard Cardenas, 49; Quentin Stallings, 35; and David Homan, 50, with distribution of methamphetamine.
According to court documents, this investigation targeted three Sacramento-area chapters of the Vagos Outlaw Motorcycle Gang (OMG). The Vagos are a motorcycle club that began in the late 1960s in California that has since evolved into one of the largest OMGs in the Western United States. They have nearly 600 members in 24 chapters located in Arizona, California, Hawaii, Nevada, Oregon, and Utah. They also have chapters in Mexico. The gang uses an organized hierarchy that includes a national president, vice president, sergeant at arms, secretary, and treasurer. The regional chapters also have the same structure in place as the national chapter. The chapters report to the national leadership and have mandated meetings and events and monthly dues.
This investigation confirmed that the Sacramento-area Vagos are involved in illegal activities. Such activities include distributing methamphetamine, purchasing illegal weapons, and handling stolen motorcycles. During this investigation, FBI used confidential sources and undercover agents to make multiple purchases of methamphetamine from Vagos members and their associates in the Sacramento area. The FBI investigation is ongoing even after this initial phase of charges.
This case was the product of an investigation by the FBI, California Department of Corrections and Rehabilitation, the West Sacramento Police Department, Placer County Sheriff’s Office, and the Sacramento Police Department. Assistant United States Attorney Jason Hitt is prosecuting the case.
Defendants Cline, Walter, Wright, and Cardenas were each ordered detained during earlier court hearings. Defendants Stallings and Homan are considered fugitives.
If convicted, Cline, Walter, and Wright face a mandatory minimum of 10 years in prison and a maximum statutory penalty of life in prison and a $10 million fine. If convicted, Cardenas, Stallings, and Homan each face a mandatory minimum of five years in prison and a maximum of 40 years in prison with a fine of up to $5 million. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; each defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
U.S. Postal Service Supervisor, Brother, Admit Trafficking CocaineRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that EDWARD HOGAN, 38, and his brother, JUSTIN HOGAN, 34, both of Waterbury, pleaded guilty today to federal narcotics trafficking and mail theft charges.
This matter stems from a federal investigation into the use of the mails to transport narcotics from Puerto Rico to the greater Waterbury area.
According to court documents and statements made in court, EDWARD HOGAN was employed by the U.S. Postal Service as a supervisor of customer service assigned to the Plaza Station Post Office in Waterbury. Beginning in approximately January 2012, HOGAN used his position with the U.S. Postal Service to remove parcels containing cocaine and marijuana from the mail stream. EDWARD and JUSTIN HOGAN then distributed the drugs to third parties for profit.
On November 9, 2013, law enforcement surveilled EDWARD HOGAN as he intercepted a package containing approximately two kilograms of cocaine that was delivered to the Waterbury Main Post Office on Grand Street. He then transported the parcel to his residence. JUSTIN HOGAN arrived at the residence a short time later and opened the package in EDWARD HOGAN’s presence.
EDWARD HOGAN pleaded guilty before Senior U.S. District Judge Ellen Bree Burns in New Haven to one count of conspiracy to possess with intent to distribute 500 grams or more of cocaine, and one count of embezzlement of mail by a U.S. Postal Employee. JUSTIN HOGAN pleaded guilty before U.S. District Judge Vanessa L. Bryant in Hartford to one count of conspiracy to possess with intent to distribute 500 grams or more of cocaine, and one count of receipt of stolen mail matter. The defendants face a maximum term of imprisonment of 25 years when they are sentenced.
EDWARD HOGAN has also agreed to forfeit $22,364 in cash that was seized at the time of his arrest.
This case is being investigated by the Federal Bureau of Investigation, the U.S. Postal Inspection Service and the U.S. Postal Service – Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Christopher M. Mattei.
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(203) 821-3722 [email protected]U.S. Forfeits over $480 Million Stolen by Former Nigerian Dictator in Largest Forfeiture Ever Obtained Through a Kleptocracy ActionRead the Press Release
The Department of Justice has forfeited more than $480 million in corruption proceeds hidden in bank accounts around the world by former Nigerian dictator Sani Abacha and his co-conspirators.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement after a judgment was entered on Aug. 6, 2014, by U.S. District Judge John D. Bates of the District of Columbia.
“Rather than serve his county, General Abacha used his public office in Nigeria to loot millions of dollars, engaging in brazen acts of kleptocracy,” said Assistant Attorney General Caldwell. “With this judgment, we have forfeited $480 million in corruption proceeds that can be used for the benefit of the Nigerian people. Through the Kleptocracy Asset Recovery Initiative, the Department of Justice’s Criminal Division denies kleptocrats like Abacha the fruits of their crimes, and protects the U.S. financial system from money laundering. In coordination with our partners in Jersey, France and the United Kingdom, we are helping to end this chapter of corruption and flagrant abuse of office.”
“We remain steadfast in protecting the U.S. banking system from becoming a tool for dictators to hide their criminal proceeds,” said Assistant Director in Charge Parlave. “This court order bolsters the FBI’s ability to combat international corruption and money laundering by seizing the assets of those involved. I want to thank the special agents, financial analysts and prosecutors whose hard work over the years resulted in today’s announcement.”
The forfeited assets represent the proceeds of corruption during and after the military regime of General Abacha, who assumed the office of the president of the Federal Republic of Nigeria through a military coup on Nov. 17, 1993, and held that position until his death on June 8, 1998. The complaint alleges that General Abacha, his son Mohammed Sani Abacha, their associate Abubakar Atiku Bagudu and others embezzled, misappropriated and extorted billions of dollars from the government of Nigeria and others, then laundered their criminal proceeds through U.S. financial institutions and the purchase of bonds backed by the United States.
The judgment is the result of a civil forfeiture complaint the department filed in November 2013 against more than $625 million in the largest kleptocracy forfeiture action brought in the department’s history. The forfeiture judgment includes approximately $303 million in two bank accounts in the Bailiwick of Jersey, $144 million in two bank accounts in France, and three bank accounts in the United Kingdom and Ireland with an expected value of at least $27 million. The ultimate disposition of the funds will follow the execution of the judgment in each of these jurisdictions. Claims to an additional approximately $148 million in four investment portfolios in the United Kingdom are pending.
As alleged in the complaint, General Abacha and others systematically embezzled billions of dollars in public funds from the Central Bank of Nigeria on the false pretense that the funds were necessary for national security. The conspirators withdrew the funds in cash and then moved the money overseas through U.S. financial institutions. General Abacha and his finance minister also allegedly caused the government of Nigeria to purchase Nigerian government bonds at vastly inflated prices from a company controlled by Bagudu and Mohammed Abacha, generating an illegal windfall of more than $282 million. In addition, General Abacha and his associates allegedly extorted more than $11 million from a French company and its Nigerian affiliate in connection with payments on government contracts. Funds involved in each of these schemes were allegedly laundered through the United States.
This case was brought under the Kleptocracy Asset Recovery Initiative by a team of dedicated prosecutors in the Criminal Division’s Asset Forfeiture and Money Laundering Section, working in partnership with federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
The investigation was conducted by the FBI. The case is being prosecuted by Trial Attorney Elizabeth Aloi and Assistant Deputy Chief Daniel Claman of the Criminal Division’s Asset Forfeiture and Money Laundering Section, with substantial support from the Criminal Division’s Office of International Affairs. The department appreciates the extensive assistance provided by the governments of Jersey, France and the United Kingdom in this investigation.
U.S. Department of Transportation and Ferndale Construction Firm Settle Dispute of False Claims over Minority Owned SubcontractorRead the Press Release
IMCO General Construction (IMCO), a heavy construction company located in Ferndale, Washington, settled claims this week with the U.S. Department of Transportation (USDOT) that it submitted false claims related to its Disadvantaged Business Enterprise (DBE) program. IMCO denies any wrongdoing in connection with the $200,000 settlement.
According to the settlement document, the government alleged that while working on the federally-funded Horton Road Project, widening a stretch of Washington State Highway 539 north of Bellingham, IMCO falsely claimed that a DBE completed certain work, when, in fact, the work was done by a non-DBE. IMCO claimed the work was completed by Aleut, a federally certified DBE company. In fact the work was completed by BBK Trucking, a company that is not certified as a DBE.
“Disadvantaged Business Enterprise (DBE) fraud harms the integrity of the DBE program and law-abiding contractors by defeating efforts to ensure a level playing field in which all firms can compete fairly for contracts,” said William Swallow, regional Special Agent-in-Charge of the U.S. Department of Transportation (DOT) Office of Inspector General. “Our agents will continue to work with the Secretary of Transportation and other Federal, State, and local law enforcement and prosecutorial colleagues to expose and shut down DBE fraud schemes that adversely affect public trust and DOT-assisted highway programs.”
In 1980, the USDOT issued regulations in connection with a program to increase the participation of minority and disadvantaged business enterprises (“DBEs”) in federally funded public construction contracts (the “DBE Program”). Pursuant to those regulations, recipients of United States Department of Transportation (“USDOT”) construction grants are required to establish a DBE program that, among other things, (1) establishes goals for the percentage of a construction project’s work that should be awarded to DBEs (“DBE goals”); and (2) requires general contractors on construction projects to make good faith efforts to meet the relevant DBE goals.
The case was investigated by the Department of Transportation Office of Inspector General. The case was prosecuted by Assistant United States Attorney Kayla C. Stahman
U.S. Attorney Luger: St. Paul Man Sentenced for Producing Child PornographyRead the Press Release
United States Attorney Andrew M. Luger announced the sentencing last week of DOUGLAS LUKE ROBINETTE, 27, to 360 months in federal prison. ROBINETTE was indicted on April 9, 2013, and pleaded guilty to one count of Production of Child Pornography on November 8, 2013. He was sentenced on July 28, 2014, by United States District Court Chief Judge Michael J. Davis.
“Distributing child pornography re-victimizes the children in these cases,” said Assistant U.S. Attorney Lola Velazquez-Aguilu. “The defendant in this case sexually assaulted a young boy, digitally recorded the assaults, and emailed the images, virtually guaranteeing that they will forever exist in cyberspace. We hope that this sentence sends a strong message to others who trade in images of sexual violence against children.”
According to documents filed in court, ROBINETTE was convicted on November 11, 2010, of First Degree Criminal Sexual Conduct in Kanabec County, Minnesota. He was sentenced to a 144-month state prison sentence. After ROBINETTE’S conviction in Kanabec County, the United States Attorney’s Office investigated and prosecuted the defendant for the production of child pornography.
According to his guilty plea in federal court, ROBINETTE induced a developmentally delayed boy to engage in sexually explicit conduct, which the defendant recorded on his cell phone. ROBINETTE further admitted to engaging in sexual contact with the boy on several occasions, and producing and distributing images of the sexual contact.
The case was brought as part of Project Safe Childhood (“PSC”), 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 U.S. Attorney offices and the Justice Department’s Criminal Division, Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”
This case was prosecuted by Assistant U.S. Attorney Lola Velazquez-Aguilu.
U.S. Attorney Luger thanked the Kanabec County Sheriff’s Office, the Minnesota Bureau of Criminal Apprehension, and the Minnesota Child Exploitation Task Force, which is sponsored by the Federal Bureau of Investigation.
Defendant Information: DOUGLAS LUKE ROBINETTE, D.O.B. 5/5/1986
St. Paul, MN
Convicted: • Production of Child Pornography, Felony
Sentenced: • 360 Months in Custody of the Bureau of Prisons
• Supervised Release for a term of lifeTwo Inmates Sentenced for Rioting in A Federal PrisonRead the Press Release
Jackson, Miss – Two inmates at the Adams County Correctional Facility were sentenced in federal court today by Senior U.S. District Judge David Bramlette III for rioting at the prison on May 20, 2012, announced U.S. Attorney Gregory K. Davis and Acting FBI Special Agent in Charge Johnnie Sharp.
Carlos Flores, 42, was sentenced to 74 months in prison and Yoany Oriel Serrano-Bejarano, 29, was sentenced to 72 months in prison. They were both ordered to pay restitution in the amount of $1,382,313.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Patrick Lemon.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Two Buffalo Women Plead Guilty to Identity TheftRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two Buffalo, Mo., women have pleaded guilty in federal court to stealing the identities of 20 victims to obtain unauthorized credit cards in the victims’ names.
Kelly Marie Lockhart, also known as Kelly Marie Wilson, 35, of Buffalo, waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges her with one count of aggravated identity theft. In a separate but related case, Stacy R. Rosa, also known as Stacy R. Webbe, 40, of Buffalo, waived her right to a grand jury and pleaded guilty on Wednesday, Aug. 6, 2014, to a federal information that charges her with one count of aggravated identity theft.
Lockhart and Rosa admitted that they aided and abetted one another to obtain unauthorized credit cards by stealing the identity information of approximately 20 victims between April 12, 2012, and Jan. 17, 2014. They used the credit cards to make approximately $60,655 in purchases.
Lockhart and Rosa used stolen personally identifying information (including individuals’ names, dates of birth, Social Security numbers, driver’s license numbers and bank account information) to gain access to the identity theft victims’ bank and credit card accounts via telephone and the Internet, and to open new credit card accounts. Lockhart and Rosa obtained unauthorized credit cards issued in the victims’ names, and utilized those cards to purchase merchandise and gift cards and to obtain cash advances.
The plea agreements each cite a specific example in which they impersonated a North Carolina victim during a telephone call and obtained a secondary credit card in the name of Kelly Wilson (Lockhart’s alias). On April 22, 2013, Lockhart used the unauthorized credit card in Bolivar, Mo., to obtain a $3,600 cash advance. On April 30, 2013, Rosa used the unauthorized credit card to pay $96 for her visit to a hair salon in Buffalo.
Under federal statutes, Lockhart and Rosa are each subject to a mandatory minimum sentence of two years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
These cases are being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. They were investigated by the U.S. Secret Service, the U.S. Postal Inspection Service, the Buffalo, Mo., Police Department and the Bolivar, Mo., Police Department.Tuolumne County Man Indicted for Starting Rim FireRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today, charging Keith Matthew Emerald, 32, of Columbia, with starting a fire that eventually burned more than 250,000 acres, including large areas in the Stanislaus National Forest and Yosemite National Park, United States Attorney Benjamin B. Wagner and U.S. Forest Service Pacific Southwest Regional Forester Randy Moore announced. The Rim Fire, which burned for nine weeks, was the largest fire in the Sierra Nevada Mountains in recorded history.
The indictment charges that on August 17, 2013, Emerald kindled a fire in the Stanislaus National Forest and allowed the fire to spread beyond his control. At the time of the fire, temporary fire restrictions were in place that prohibited fires. In addition, Emerald is charged with lying to a federal agent when he told them that he did not set the fire.
According to court documents, Emerald was rescued by helicopter from the extremely remote Clavey River Canyon area of the Stanislaus National Forest near the origin of the Rim Fire about an hour after the fire was reported. Emerald was carrying bow hunting equipment with him and advised authorities that he had been on a solo hunting trip.
U.S. Attorney Wagner stated: “The Rim Fire was one of the largest in California history and caused tremendous economic and environmental harm. While those harms cannot be undone, today we have brought criminal charges relating to the cause of that fire. I want to commend the Forest Service agents for their diligent and extensive investigation.”
“The impacts of the Rim Fire on our public lands will continue for years to come,” said U.S. Forest Service Pacific Southwest Regional Forester Randy Moore. “This devastating fire caused risk to firefighters, citizens and private property, and over 125 million dollars were spent in fire suppression costs on this beautiful and popular landscape. We’re still dealing with hazardous trees and erosion.”
“The cooperative work of the criminal investigators from the U.S. Forest Service, Tuolumne County District Attorney's Office, and prosecutors from the U.S. Attorney's Office that lead to the indictment is commendable,” said Scott Harris, U.S. Forest Service special agent in charge of the Pacific Southwest Region. “Through this investigative partnership and support from the community, we have discovered the origin, cause and identified a suspect for the massive Rim Fire.”
This case is the product of an investigation by the U.S. Forest Service with assistance from the Tuolumne County District Attorney’s Office. Assistant United States Attorneys Kevin P. Rooney and Melanie L. Alsworth are prosecuting the case.
Emerald is expected to appear soon in federal court in Fresno. If convicted of setting timber afire or false statements to a government agency, Emerald faces a maximum statutory penalty of five years in prison and a $250,000 fine for each count. Leaving a fire unattended and violating a fire restriction order each carry a maximum penalty of six months in prison and a $5,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Thirty-Five Defendants Facing State or Federal Drug Charges for Allegedly Selling Heroin and Crack Cocaine on City’s West SideRead the Press Release
CHICAGO — The alleged patriarch of a Gangster Disciples street gang faction that operates in the two square blocks surrounding the 4500 block of West Jackson Boulevard on the city’s west side was arrested today and charged, together with 34 other defendants, with possessing and distributing heroin and crack cocaine at two open air drug spots. JOHNNY HERNDON allegedly supplied and directed a drug trafficking organization that sold heroin, crack, and other narcotics since the early 1990s, and used the proceeds to accumulate more than 30 real estate properties, mostly multi-unit rentals, valued at more than $1.6 million, over the last two decades.
In addition to Herndon, also known as “Goo,” Chicago police officers and ATF and IRS agents began arresting 20 federal and 15 state defendants early this morning. Three firearms, approximately $10,000, and more than a half-kilogram of heroin were seized this morning during the arrests. Another 13 firearms and hundreds of grams of heroin, crack cocaine, cocaine, and marijuana were seized during the investigation. Police and federal agents also executed 10 search warrants at several defendants’ residences and alleged stash houses.
Herndon’s drug territory is particularly lucrative due to the heavy traffic of drug customers and proximity to the Eisenhower Expressway, and his organization used violence, guns, and threats to control and protect this territory, according to federal charges unsealed today.
In two instances during the investigation, in March and June of this year, CHRISTOPHER HARRIS, allegedly the day-to-day manager of Herndon’s organization who was also arrested today, was intercepted in recorded conversations directing that guns be brought to him. The second instance occurred on June 7 when law enforcement believes that Harris allegedly was looking for guns and mobilizing the Herndon organization to respond immediately after the shooting death that night of a Gangster Disciples member in the 4400 block of West Jackson. Law enforcement quickly located Harris before there was any retaliation, and he was charged federally today with being a felon-in-possession of a firearm for allegedly possessing a .357 caliber revolver that night.
Controlling two “drug spots” ― in the 300 block of South Kilbourn Avenue and the 4400 block of West Congress Avenue ― Herndon’s organization allegedly sold 540 quarter-gram rocks of crack cocaine daily for $10 each, or 135 grams of crack for $5,400 a day on average. The retail side of the organization alone sold more than four kilograms of crack and generated approximately $162,000 in revenue in an average 30-day month, the charges allege.
Since 1993, Herndon, 55, who lives in a converted three-flat in the 4500 block of West Jackson, allegedly spent more than $1 million to purchase 31 properties in Chicago and the area, including Gary, Ind.. The properties were purchased with drug proceeds and proceeds from the sale of other appreciated properties that were purchased with drug proceeds that were then re3 invested to purchase additional properties. All of the properties were purchased outright, with no mortgage, and many have been rehabbed. The rental properties, including some Section 8 subsidized units, generate more than $20,000 a month in rental receipts for Herndon, the charges allege.
The federal defendants were charged with various narcotics offenses in an 11-count criminal complaint that was filed yesterday in U.S. District Court and unsealed following the arrests. The federal defendants began appearing this morning before U.S. Magistrate Judge Michael Mason in U.S. District Court. The state defendants were charged with possession or delivery of a controlled substance in separate complaints and will appear later in state court.
“Today’s takedown is another step in law enforcement’s Job One, and that is to build upon our decades’ long effort to wipe out drug gangs and gang factions that unfairly impact certain Chicago neighborhoods and make life dangerous for many fellow citizens,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “The U.S. Attorney’s Office remains committed to working with Cook County and our local and federal partners to fight gangs and violent crime until those neighborhoods are safe,” he added.
Mr. Fardon and Ms. Alvarez announced the charges with Garry F. McCarthy, Superintendent of the Chicago Police Department; Carl J. Vasilko, Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives; and James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division. The investigation was conducted through the U.S. Organized Crime Drug Enforcement Task Force (OCDETF), and the Chicago High Intensity Drug Trafficking Task Force (HIDTA) assisted in the investigation.
“Today’s action is a vivid display of the partnership between ATF and CPD and our commitment to eradicating violent drug and gun crimes in Chicago. As a result of our efforts, we have disrupted a violent drug trafficking organization on Chicago’s west side in a very short period of time,” Mr. Vasilko said.
“This investigation is a powerful and perfect testament of the good that can come when our agencies work together,” said Superintendent McCarthy. “I am extremely proud of not only our officers, but all the law enforcement personnel who contributed to bringing these alleged gang members to justice and making our streets a safer place.”
According to a 178-page affidavit in support of the federal arrests and search warrants, the investigation, which included extensive wiretaps, use of confidential sources, and surveillance, revealed that Herndon supplied crack cocaine to Harris, 34. If Herndon did not have crack, Harris obtained powder cocaine from other alleged suppliers, including EDUARDO ZAMUDIO, 27, and ROBERT RUSSELL, 48, and then converted it into crack. Harris, in turn, supplied the crack to JONATHAN GREEN, 27; FABIAN REDMOND, 28; JONATHAN O’LEARY, 30; and ANTWAION EDWARDS, 39, who allegedly were the drug spot managers. The managers oversaw the spot workers, including MARCUS LONGSTREET, 29; MANUEL MEEKS, 41; CAUIRENCE HERNDON, 34; DESHAWN RICHARDSON, 21; ANDREW JONES, 31; and PATRICIA NEAL, 35.
Johnny Herndon and other leaders of his organization also allegedly sold wholesale quantities of heroin and crack to other Gangster Disciples members, including KESHAW EUELL, 40, who controlled drug spots in the blocks surrounding their area. ROBERT SMITH, 59, was allegedly Herndon’s lead wholesale distributor of crack, selling up to several hundred grams at a time to various wholesale customers in Chicago and Indiana, including DARRYL JONES, 48; MILDRED SMITH, 59; and HARRY SMITH, 30. Another defendant, DARVEN MARION, 46, allegedly a Black Soul street gang member who had a close relationship with Herndon and Harris, was another wholesale supplier to Robert Smith.
Twelve federal defendants ― Johnny Herndon, Harris, Green, Redmond, O’Leary, Edwards, Longstreet, Meeks, Cauirence Herndon, Richardson, Jones, and Neal ― were charged with conspiracy to possess and distribute crack cocaine. If convicted, they each face a mandatory minimum sentence of 10 years in prison and a maximum of life imprisonment and a $10 million fine.
Harris alone faces an additional maximum sentence of 10 years in prison on the felon-inpossession charge. The remaining federal defendants were charged with various drug distribution counts that carry maximum penalties of either 20 years in prison and a $1 million fine, or a mandatory minimum of five years and a maximum of 40 years and a $5 million fine.
The state defendants are: JOSE ESCALARA, 43; LANORIS HOLMAN, 48; DERRICK HUGHES, 53, of Bellwood; ARTURO LARA, 54, of Schaumburg; SAMMIE LOCKHART, 58; PAMERA LONG, 42; CHARLES MARKESE, 57; RUSSELL MORAVEC, 49; DEANGELO PERCY, 34; EARL SMITH, 28; SHAWN SMITH, 46; SHAUNTAH LANGFORD, 32; GENE McCAULLEY, 34; JERROLD SANDERS, 44; and MICHEAL STOKES, 29, all of Chicago unless otherwise noted.
Assistant United States Attorneys Christopher Grohman and Rajnath Laud are representing the government in the federal cases. Assistant State’s Attorney Rita O’Connor is handling the state cases.
The public is reminded that complaints contain only charges and are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
Seventh Defendant Indicted in Border Patrol Agent Brian Terry Murder CaseRead the Press Release
Rosario Rafael Burboa-Alvarez was indicted by a federal grand jury in Tucson yesterday, becoming the seventh man charged in connection with the murder of U.S. Border Patrol Agent Brian Terry, announced Attorney General Eric Holder and U.S. Attorney Laura E. Duffy of the Southern District of California.
“When Border Patrol Agent Brian Terry lost his life in the line of duty, in 2010, our nation incurred a tremendous debt to this American hero – and his family – that we can never fully repay. But with these charges, we are taking another important step to keep our commitment to bring those responsible for his murder to justice,” said Attorney General Eric Holder. “We will continue to be aggressive in our pursuit of anyone – anywhere – who commits an act of violence against an American law enforcement official. And we will do everything in our power to ensure that they will face justice in an American courtroom. This is our solemn obligation.”
Agent Terry was fatally shot on Dec. 14, 2010, when he and other Border Patrol agents encountered armed robbers in a rural area north of Nogales, Arizona. Of the defendants charged so far, two have pleaded guilty, three are awaiting trial and two are fugitives.
Burboa-Alvarez, 30, is described in the indictment as the recruiter who assembled the crew of armed robbers to travel from Mexico to the United States and forcibly take marijuana from smugglers through threats or actual violence.
The crew members were identified in the indictment as Manuel Osorio Arellanes, Jesus Rosario Favela-Astorga, Ivan Soto-Barraza, Heraclio Osorio-Arellanes, Lionel Portillo-Meza and Rito Osorio-Arellanes.
The indictment charges Burboa-Alvarez and others with first degree murder, second degree murder, conspiracy to interfere with commerce by robbery and attempted interference with commerce by robbery. Other crew members are also charged with use and carrying a firearm during a crime of violence and assault on a federal officer. In addition to the murder of Agent Terry, the indictment alleges that the defendants assaulted Border Patrol Agents William Castano, Gabriel Fragoza, and Timothy Keller, who were with Agent Terry during the firefight.
Burboa-Alvarez was already in custody in Tucson for immigration-related crimes. He is scheduled to be arraigned in federal court in Tucson at 1:45 p.m. today before U.S. Magistrate Judge Bernardo P. Velasco.
Portillo-Meza was captured in Mexico in September 2012 and extradited to the U.S. on June 17, 2014. Soto-Barraza was captured in Mexico in September 2013 and was extradited to the U.S. on July 31, 2014. Favela-Astorga and Osorio-Arellanes are fugitives.
Another defendant, Manuel Osorio-Arellanes, pleaded guilty to first degree murder and was sentenced to 30 years in prison in February 2014. Another defendant, Rito Osorio-Arellanes, who was in custody at the time of Agent Terry’s murder, pleaded guilty to conspiracy to interfere with commerce by robbery and was sentenced to eight years in prison in January 2013.
This case is being prosecuted in federal court in Tucson by attorneys from the Southern District of California. They are Special Assistant United States Attorneys Todd W. Robinson, David D. Leshner and Fred Sheppard. The U.S. Attorney’s Office for the District of Arizona is recused. This case is being investigated by the FBI. The Justice Department’s Office of International Affairs provided assistance with the extraditions.
The public is reminded that an indictment is a formal charging document and defendants are presumed innocent until the government meets its burden in court of proving guilt beyond a reasonable doubt.
Seventh Defendant Indicted in Border Patrol Agent Brian Terry Murder CaseRead the Press Release
SAN DIEGO, CA – Rosario Rafael Burboa-Alvarez was indicted by a federal grand jury in Tucson yesterday, becoming the seventh man charged in connection with the murder of U.S. Border Patrol Agent Brian Terry.
Agent Terry was fatally shot on Dec. 14, 2010, when he and other Border Patrol agents encountered armed robbers in a rural area north of Nogales, Arizona. Of the defendants charged so far, two have pleaded guilty, three are awaiting trial and two are fugitives.
Burboa-Alvarez was already in custody in Tucson for immigration-related crimes. He is scheduled to be arraigned in federal court in Tucson at 1:45 p.m. today before U.S. Magistrate Judge Bernardo P. Velasco.
Burboa-Alvarez, 30, is described in the indictment as the recruiter who assembled the crew of armed robbers to travel from Mexico to the United States and forcibly take marijuana from smugglers through threats or actual violence.
The crew members were identified in the indictment as Manuel Osorio Arellanes, Jesus Rosario Favela-Astorga, Ivan Soto-Barraza, Heraclio Osorio-Arellanes, Lionel Portillo-Meza and Rito Osorio-Arellanes.
The indictment charges Burboa-Alvarez and others with first degree murder, second degree murder, conspiracy to interfere with commerce by robbery and attempted interference with commerce by robbery. Other crew members are also charged with use and carrying a firearm during a crime of violence and assault on a federal officer. In addition to the murder of Agent Terry, the indictment alleges that the defendants assaulted Border Patrol Agents William Castano, Gabriel Fragoza, and Timothy Keller, who were with Agent Terry during the firefight.
Portillo-Meza was captured in Mexico in September 2012 and extradited to the U.S. on June 17, 2014. Soto-Barraza was captured in Mexico in September 2013 and was extradited to the U.S. on July 31, 2014. Favela-Astorga and Osorio-Arellanes are fugitives.
Another defendant, Manuel Osorio-Arellanes, pleaded guilty to first degree murder and was sentenced to 30 years in prison in February 2014. Another defendant, Rito Osorio-Arellanes, who was in custody at the time of Agent Terry’s murder, pleaded guilty to conspiracy to interfere with commerce by robbery and was sentenced to eight years in prison in January 2013.
This case is being prosecuted in federal court in Tucson by attorneys from the Southern District of California. They are Special Assistant United States Attorneys Todd W. Robinson, David D. Leshner and Fred Sheppard. The U.S. Attorney’s Office for the District of Arizona is recused. This case is being investigated by the FBI. The Justice Department’s Office of International Affairs provided assistance with the extraditions.
The public is reminded that an indictment is a formal charging document and defendants are presumed innocent until the government meets its burden in court of proving guilt beyond a reasonable doubt.