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Tuesday 17 June 2014
Two Mexican Nationals Sentenced for Trafficking Cocaine, Meth in Cole, Moniteau CountiesRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Mexican nationals were sentenced in federal court today for their roles in conspiracies to distribute large amounts of cocaine and methamphetamine in Cole and Moniteau Counties, Mo.
Froylan Pedroza-Guadarrama, 31, and Jesus Ricardo-Amaya, 29, both citizens of Mexico, were sentenced in separate hearings before U.S. District Judge Fernando J. Gaitan. Pedroza-Guadarrama was sentenced to nine years in federal prison without parole. Ricardo-Amaya was sentenced to two years in federal prison without parole.
Co-defendants Eloy Castaneda-Gonzalez, 34, Beroldo Almazan, 34, and Adolfo Almazan-Hernandez, 43, all of whom are Mexican nationals residing in California, Mo., have also been sentenced. Castaneda-Gonzalez was sentenced to 15 years in federal prison without parole. Almazan was sentenced to 10 years in federal prison without parole. The court also ordered them to forfeit to the government $52,928, which was derived from the offense. Almazan-Hernandez was sentenced to 18 months in federal prison without parole.
Ricardo-Amaya, Castaneda-Gonzalez, Almazan and Almazan-Hernandez each pleaded guilty to their roles in a conspiracy to distribute methamphetamine and a conspiracy to distribute cocaine. Pedroza-Guadarrama pleaded guilty to his role in the conspiracy to distribute cocaine.
According to court documents, a DEA agent learned that Castaneda-Gonzalez wanted to purchase seven kilograms of cocaine from two cooperating sources. The DEA’s cooperating sources agreed to travel to Missouri and deliver the cocaine for $24,000 per kilogram. On June 21, 2012, the cooperating sources directed Castaneda-Gonzalez to meet them at a Jefferson City, Mo., motel.
Castaneda-Gonzalez was accompanied by Almazan and Almazan-Hernandez when he arrived at the motel room. Castaneda-Gonzalez explained that he didn’t have all of the money to purchase seven kilograms of cocaine, but offered to provide the cooperating sources with five pounds of methamphetamine, along with a portion of the money, in exchange for the cocaine. They accepted the offer, and Castaneda-Gonzalez, Almazan and Hernandez left the motel room, stating they would return shortly with the methamphetamine and money.
Approximately one and a half hours later, Castaneda-Gonzalez, Almazan and Almazan-Hernandez returned to the motel room. Castaneda-Gonzalez gave the cooperating sources a package that contained nearly one pound of crystal methamphetamine. A short time later, Almazan-Hernandez left the room momentarily and returned with a bag containing the remaining four pounds of crystal methamphetamine. While inside the motel room, Almazan made several telephone calls which sounded like he was arranging for Almazan-Hernandez to meet with one or more of Almazan’s customers at a nearby McDonald’s. Almazan-Hernandez returned approximately 30 minutes later with $20,000 in cash. The cooperating sources then provided Castaneda-Gonzalez with one kilogram of cocaine to inspect, and told him they were going to leave the room to obtain the remaining six kilograms.
Castaneda-Gonzalez became extremely nervous and fled from the room, followed by Almazan, but both were apprehended after a brief foot chase. Almazan-Hernandez was also taken into custody as he walked out of the motel room.
Based on Almazan’s telephone calls, investigators believed that additional conspirators were at a nearby McDonald’s. Investigators located Pedroza-Guadarrama, Ricardo-Amaya and co-defendant Victor Hugo De La Roza-Garza, 32, a Mexican national, who were arrested in separate car stops as they left the McDonald’s. Officers discovered $15,000 inside a bag on the back seat of De La Roza’s vehicle and another $14,000 hidden in a false compartment of a toolbox.
De La Roza-Garza pleaded guilty to his role in the conspiracy to distribute cocaine and awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Drug Enforcement Administration, the Mid-Missouri Drug Task Force and the Jefferson City, Mo., Police Department.Third Defendant Pleads Guilty in Procurement Fraud Scheme Involving Service-Disabled Veteran-Owned Small BusinessesRead the Press Release
ALEXANDRIA, Va. – A former service contractor for U.S. Customs and Border Protection (CBP) pleaded guilty today for his role in accepting over $350,000 in connection with the awarding of a $24 million contract by CBP.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John Roth, Inspector General for the Department of Homeland Security (DHS); Robert C. Erickson, Jr., Acting Inspector General, General Services Administration (GSA); Peggy E. Gustafson, Small Business Administration (SBA) Inspector General; and Richard J. Griffin, Acting Inspector General, Department of Veterans Affairs (VA), made the announcement after the plea was accepted by U.S. District Judge Anthony J. Trenga.
Chancellor Ellis, 37, of Manassas, Virginia, pleaded guilty to conspiracy to obtain illegal gratuities and to violate the procurement integrity act. Ellis faces a maximum penalty of five years in prison when he is sentenced on September, 12, 2014. He will also pay restitution and forfeiture in the amount of $351,176.60, representing the total amount of illicit payments sought and accepted by Ellis in connection with the procurement fraud scheme.
In a statement of facts filed with the plea agreement, Ellis admitted that, throughout the conspiracy, he worked for CBP as a service contractor. Among other duties and responsibilities at CBP, Ellis worked as a technical advisor on a procurement for a Wide Area Network (WAN) optimization project. The procurement resulted in an award to a service-disabled veteran-owned small business, identified in the statement of facts as Company T, at a contract price of approximately $24 million.
Prior to the award to Company T, Ellis—who was actively working for CBP on the procurement—requested that Company T agree to pay ten percent of any profits from the WAN optimization contract to a company co-owned by Ellis. Shortly after reaching this agreement with Company T, Ellis provided nonpublic source selection information related to the WAN optimization procurement, including independent government cost estimates, to Company T employee Anthony Bilby. Bilby and other co-conspirators used the source selection information in crafting the winning bid on behalf of Company T. Bilby and other conspirators also caused nominal competitors of Company T to submit rigged bids on the contract in excess of the amount of Company T’s bid. After Company T won the contract, it paid $351,176.60—approximately ten percent of its profits—to Ellis’s company.
As part of his plea agreement, Ellis has agreed to cooperate in the investigation of others involved in the conspiracy. Two other co-conspirators, Anthony Bilby and Thomas Flynn, have previously pleaded guilty and have been sentenced for their roles in the conspiracy.
This case was investigated by the Offices of the Inspector General for DHS, GSA, SBA, and the VA, with assistance from DHS’s Office of the Chief Security Officer, Cyber Forensic Branch. Assistant U.S. Attorney Kosta S. Stojilkovic is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-205.Texas Woman Admits Illegally Exporting Advanced Combat Optical Gunsights, Sentenced to PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JANIECE MICHELLE HOUGH, 41, of Kempner, Texas, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of smuggling goods from the United States. The charge stems from HOUGH’s sale of two Advanced Combat Optical Gunsights (ACOGs) destined for Germany in violation of the International Trafficking in Arms Regulations.
Following her plea of guilty, Judge Underhill sentenced HOUGH to six months of imprisonment, followed by three years of supervised release, the first eight months of which she must serve in home confinement. HOUGH was also ordered to perform 100 hours of community service and to forfeit $198,054.
According to court documents and statements made in court, HOUGH worked for a government contractor and was based at Fort Hood in Texas. On the side, she operated an online business selling surplus military clothing and equipment on eBay. While working at Fort Hood, HOUGH purchased military equipment from U.S. Army personnel, including Michael Bartch, for re-sale online. In June 2010, HOUGH sold and shipped two ACOGs to an individual in Connecticut with the understanding that the AGOGs were destined for Germany.
HOUGH did not have a license from the U.S. State Department, which is required to export ACOGs and other items on the U.S. Munitions List.
Bartch, of Copperas Cove, Texas, was prosecuted by the U.S. Attorney’s Office for the Western District of Texas. On April 17, 2013, he was sentenced to 24 months of imprisonment.
In the District of Connecticut, this case was investigated by the Defense Criminal Investigative Service, Homeland Security Investigations, and the U.S. Department of Commerce, Bureau of Industry and Security, Boston Field Office. The case was prosecuted by Assistant U.S. Attorneys Edward Chang and Hal Chen.
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[email protected]St. Paul Attorney Convicted of Money Laundering Drug Proceeds Through His Law FirmRead the Press Release
MINNEAPOLIS — Today in federal court, a jury returned guilty verdicts on all three counts of an indictment charging Robert David Boedigheimer, 51, of Stillwater, with one count of Conspiracy to Commit Money Laundering, one count of Money Laundering, and one count of making a False Statement to an IRS Agent. Boedigheimer, a St. Paul attorney, was indicted on December 10, 2013.
Boedigheimer conspired with Brandon Lusk, his brother-in-law, a marijuana dealer based in southem Minnesota to launder the proceeds from the sales of marijuana. Lusk pleaded guilty in October 2011 to one count of conspiracy and one count of conspiracy to commit money laundering. Lusk admittedly formed a company called Rochester Reliable Rentals, which acquired nine Rochester properties. Lusk knowingly financed improvements and renovations to those properties with proceeds of the marijuana conspiracy through the assistance of Boedigheimer. Brandon Lusk, along with Richard Kay of Rochester and others conspired to distribute more than 1000 grams of marijuana. Kay was sentenced to 200 months in prison and Lusk is currently awaiting sentencing.
Prosecutors are very pleased with the verdict. Assistant United States Attorney Steven L. Schleicher stated, “This case needed to be prosecuted because as a practicing lawyer, the defendant abused the trust that society places on the practice of law by laundering drug money through his law firm and obstructing a federal investigation.”
Boedigheimer faces a potential maximum penalty of 20 years in prison on the conspiracy count, 10 years on the money laundering count, and five years on the false statements count. All sentences will be determined by a federal district court judge.
This case is the result of an investigation by the Internal Revenue Service- Criminal Investigation Division, the Minnesota Bureau of Criminal Apprehension, the Drug Enforcement Administration, the Southeast Minnesota Narcotics and Gang Task Force (SEMNGTF), and the Wabasha County Sheriff’s Office. It is being prosecuted by Assistant U.S. Attorneys Steven L. Schleicher and Julie E. Allyn.Sex Offender Charged for Failing to Register in PennsylvaniaRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that a criminal information has been filed in U.S. District Court in Scranton charging an East Stroudsburg man with failing to register as a sex offender in Pennsylvania.
According to U.S. Attorney Peter Smith, the defendant, Barry Page, age 46, is designated as a sexual offender as a result of a 1998 New Jersey State conviction for sexual abuse of a minor. It is alleged in the information that Page traveled in interstate commerce and knowingly failed to register and update information in Pennsylvania as he was required to do pursuant to the provisions of the Adam Walsh Act.
The charge is the result of an investigation by the United States Marshals Service. It carries a penalty of a maximum term of 10 years incarceration and fines in the amount of $250,000.
Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 10 years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
San Benito Man Sentenced for Role in Purchasing FirearmsRead the Press Release
BROWNSVILLE, Texas - Danny Cantu, 24,has been sentenced to 72 months for his role in purchasing firearms by making false statements, announced United States Attorney Kenneth Magidson along with Robert Elder, special agent in charge of Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Cantu pleaded guilty in July 2013.
The evidence proved Cantu had recruited nine others to purchase a total of 30 firearms by making false statements on ATF Form 4473. Those individuals claimed they were the actual buyer of the firearms when in truth and in fact they were acquiring the firearms on behalf of Cantu.
Cantu’s sentence today included upward adjustments or increases in his calculated sentencing guideline range because he engaged in trafficking of firearms by acquiring the firearms for individuals in Mexico, because he was an organizer of the criminal activity and because the offense involved more than 25 weapons.
The nine individuals Cantu recruited have all pleaded guilty and been sentenced to varying terms of probation or federal imprisonment.
ATF investigated. Assistant U.S. Attorney Angel Castro is prosecuting.
Ridgefield Man Sentenced to Prison for Tax EvasionRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LOUIS VUCCI, JR., 45, of Ridgefield, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 12 months of imprisonment, followed by three years of supervised release, for evading the payment of nearly $200,000 in federal taxes over a five-year period.
According to court documents and statements made in court, from 2005 through 2009, VUCCI failed to report more than $678,000 in income he received while serving as president and CEO of Diamond Ranch Foods (“DRF”), a publicly-traded company in the business of selling and distributing meat products in the New York area. VUCCI underreported his income by $112,310 in 2005, $109,473 in 2006, $174,300 in 2007, $187,704 in 2008, and $95,126 in 2009. The unreported income consisted of weekly pay checks from DRF in the amount of $2,500 that were made payable to VUCCI’s spouse, who did not work for DRF, and deposited into a bank account in his spouse’s name. Also, in 2008 and 2009, VUCCI had one of DRF’s customers pay him for purchases with blank checks, which checks he then completed and deposited into his personal bank account. The checks totaled $26,236 in 2008 and $65,387 in 2009.
In addition, large cash deposits totaling $16,100 in 2008 and $25,020 in 2009 were made into VUCCI’s personal bank accounts. These deposits were cash payments from another DRF customer for DRF sales to the customer.
VUCCI’s federal individual income tax returns reported income of $19,590 in 2005, $12,500 in 2006, $12,000 in 2007, $30,000 in 2008, $125,202 in 2009. The reported low income from 2005 to 2008 automatically qualified VUCCI for the Earned Income Credit yielding refunds rather than taxes owed.
From mid-2005 to mid-2007, VUCCI and his spouse rented a home in Greenwich for $8,500 per month, had car expenses in excess of $1,000 per month, and paid a housekeeper for approximately 20 hours per week. In 2007, VUCCI purchased a house in Ridgefield for $975,000 and continued to make the car payments.
Judge Bryant ordered VUCCI to pay back taxes in the amount of $196,425, as well as substantial interest and penalties.
On October 3, 2013, VUCCI pleaded guilty to one count of tax evasion.
VUCCI was ordered to report to prison on September 9, 2014.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Polk County Felon Pleads Guilty to Firearm ChargesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Damian Ramos Ramirez (59, Lakeland), today pleaded guilty to the charge of being a felon in possession of a firearm and ammunition. Ramos Ramirez faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Ramos Ramirez came to the attention of law enforcement officers in May 2013, when he and his wife began purchasing firearms from a Federal Firearms Licensee (FFL), in the Pinellas County area. On December 19, 2013, Ramos Ramirez purchased two Kel-Tec 9mm pistols from the FFL. Later that day, law enforcement officers executed a search warrant at Ramos Ramirez’s home and found numerous firearms and ammunition.
In all, twenty-seven firearms and 1,700 rounds of ammunition were seized in relation to this case. At the time of the incident, Ramos Ramirez was a convicted felon and thus prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco and Explosives. It is being prosecuted by Assistant United States Attorney Carlton C. Gammons.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. This is another example of ATF’s Frontline Strategy to impact violent crime within our communities.
Pittston Woman Sentenced to over Two Years on Federal Drug ChargesRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Jennifer
Dowling, 33, of Pittston, Maine, was sentenced yesterday in U.S. District Court by Chief Judge
John A. Woodcock, Jr. to 31 months in prison and 3 years of supervised release for distribution
of oxycodone. Dowling pleaded guilty to the offense on January 27, 2014.According to court records, on May 9, 2012, the defendant sold over 30 oxycodone pills
to a confidential informant working with law enforcement. During sentencing, the court noted
that prior to her arrest on this charge, Ms. Dowling was a significant drug trafficker in the
Augusta area.The investigation was conducted by the U.S. Drug Enforcement Administration and the
Kennebec County Sheriff’s Office.Nampa Woman Pleads Guilty to Controlled Substance DeliveryRead the Press Release
BOISE – Mary Jane Pace, 49, of Nampa, Idaho, pleaded guilty today to one count of distributing a controlled substance, U.S. Attorney Wendy J. Olson announced. Sentencing is set for September 9, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
According to the plea agreement, on May 24, 2012, Pace knowingly and intentionally distributed to an undercover police officer, five pills of 40 mg oxycodone, a Schedule II narcotic and controlled substance, in exchange for $100 in payment. She had obtained the controlled substances by prescription from a provider.
The case was investigated by the Drug Enforcement Administration (DEA) led Tactical Diversion Squad which is comprised of law enforcement personnel from the DEA, Ada County Sheriff’s Office, Boise Police Department, Idaho State Police, Meridian Police Department, Nampa Police Department and U.S. Department of Health and Human Services Office of Inspector General.
Midlands Men Sentenced in Counterfeiting SchemeRead the Press Release
Contac Persont: Winston Holliday (803) 929-3000
Columbia, South Carolina ----- United States Attorney Bill Nettles stated that Steven Leonard Smart, age 32, of Cayce, Joshua Kendrell Smart, age 25, of Fairfax, and Frederick Shante Redfearn, 25, of Columbia, were sentenced today in federal court in Columbia, South Carolina, for participating in a Conspiracy to Make, Forge, and Pass Counterfeit Money, a violation of 18 U.S.C. § 371. Chief United States District Judge Terry L. Wooten of Columbia sentenced Steven Smart to 38 months imprisonment; Joshua Smart to twenty months imprisonment; and Redfearn to four years of probation.
Evidence presented at the change of plea hearing established that Redfearn was a salesman for Sears. Steven and Joshua Smart, who were brothers, purchased flat screen televisions and an Xbox from a Columbia-area Sears using counterfeit money, and then attempted to return the goods at the Sears in Aiken for genuine currency. Redfearn knew about the fake money but facilitated the sale in exchange for $800 counterfeit money that he could spend himself. Sears employees in Aiken identified the bogus transactions and contacted law enforcement officers. Counterfeiting equipment and additional bogus bills were found at an apartment frequented by the Smart brothers.
The case was investigated by the United States Secret Service. Assistant United States Attorney Winston Holliday of the Columbia office prosecuted the case.# # #
Man Who Defrauded Numerous Oil Companies and Oil Customers Pleads Guilty to Federal Fraud ChargeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARC CANNON, 40, of Bridgeport, waived his right to indictment and pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to one count of wire fraud stemming from a scheme to defraud both oil companies and individuals whose oil deliveries he fraudulently brokered.
According to court documents and statements made in court, between approximately February 2010 and April 2011, CANNON, sometimes known as “Marc the Oil Man,” engaged in a scheme to defraud heating oil companies and to obtain money from individuals who received oil deliveries. CANNON posed as a retail customer when dealing with oil companies, and as a bargain oil seller when dealing with property owners. As part of the scheme, CANNON would make an offer to a property owner to sell oil at below market cost in exchange for a cash payment. Then he would contact a retail oil company, set up a fraudulent account using stolen personal identifying information, and place an order for the oil company to deliver home heating oil to a property owned by the property owner. The oil would be delivered to the property as ordered. CANNON would then collect cash for the delivery from the property owner, but he did not remit this payment to the oil company. When the oil company contacted the property owner to collect payment for the oil, the company would discover that the property owner had already made payment to CANNON.
Judge Hall scheduled sentencing for December 3, 2014, at which time CANNON faces a maximum term of imprisonment of 20 years.
CANNON was originally charged in a criminal complaint that was issued on April 13, 2011, and he was a fugitive until his arrest on January 30, 2014. He is currently released on a $100,000 bond.
This matter has been investigated by the United States Secret Service, the Connecticut Financial Crimes Task Force, the North Haven Police Department and the North Branford Police Department. The case is being prosecuted by Assistant U.S. Attorney Krishna R. Patel.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Man Sentenced to 120 Months for Federal Firearms OffensesRead the Press Release
NEW BERN – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Louise W. Flanagan sentenced DAQUIAN DEMARD NICHOLSON , 24, of Raleigh to a total of 120 months imprisonment, followed by 3 years of supervised release.
NICHOLSON was named in an Indictment filed on March 21, 2013, charging him with Possession of a Firearm with an Obliterated Serial Number and Possession of a Firearm and Ammunition by a Felon. On August 15, 2013, NICHOLSON pled guilty to these charges.
According to the investigation, on November 5, 2010, in Henderson, North Carolina, a Confidential Informant (CI) bought a firearm from Nicholson, and another person. The firearm had an obliterated serial number.
On February 18, 2013, officers from the Henderson Police Department conducted a traffic stop of a vehicle driven by Jammee Terry due to earlier information that Terry had a firearm and that he was prohibited from having a firearm. Officers detained Terry and NICHOLSON, the passenger of the vehicle. Officers seized a loaded Glock 9-millimeter handgun from under the driver's seat, and a loaded Lorcin 9-millimeter handgun from under the passenger's seat.
Terry is scheduled for sentencing during the Court’s July 8th term of court in New Bern, North Carolina.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Henderson Police Department and the Vance County Sheriff’s Office. Assistant United States Attorney S. Katherine Burnette prosecuted the case of the government.
Man Pleads Guilty to Assaulting Jail DeputyRead the Press Release
BOISE – Scott Vincente Hernandez, 42, of Oakland, California, pleaded guilty today in United States District Court to assaulting an Ada County Sheriff’s Deputy, announced U.S. Attorney Wendy J. Olson.
On July 9, 2013, Hernandez and ten others were indicted for conspiracy to distribute methamphetamine. The court ordered that Hernandez be held in custody while that case was pending. Hernandez was committed to the custody of the United States Marshal and confined at the Ada County Jail pursuant to an agreement between the U.S. Marshal and the Ada County Sheriff’s Office. Hernandez admitted in court today that on October 16, 2013, while incarcerated at the Ada County Jail, he assaulted an Ada County Jail Deputy.
U.S. District Judge Edward J. Lodge will sentence Hernandez on both the drug and assault charges on September 9, 2014. The charge of conspiracy to distribute methamphetamine is punishable by a minimum of five years and up to twenty years in prison, a maximum fine of $5 million, and at least four years of supervised release. The assault charge is punishable by up to one year in prison, a maximum fine of $100,000, and up to one year of supervised release.
The drug charges were investigated by the Treasure Valley Metro Violent Crimes Task Force, which is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The assault charge was investigated by the U.S. Marshals Service and the Ada County Sheriff’s Office.
The cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Libyan National Charged with Federal Offenses in 2012 Attack on U.S. Special Mission and Annex in BenghaziRead the Press Release
Ahmed Abu Khatallah, aka Ahmed Mukatalah, a Libyan national approximately 43 years of age, has been charged for his alleged participation in the Sept. 11, 2012, attack on the U.S. Special Mission and Annex in Benghazi, Libya, which resulted in the deaths of four Americans.
“Our nation’s memory is long, and our reach is far,” said U.S. Attorney General Eric Holder. “The arrest of Ahmed Abu Khatallah represents a significant milestone in our efforts to ensure justice is served for the heinous and cowardly attack on the U.S. diplomatic facility in Benghazi. Since that attack – which caused the deaths of Ambassador J. Christopher Stevens, Sean Smith, Tyrone Woods and Glen Doherty – we have conducted a thorough, unrelenting investigation, across continents, to find the perpetrators. The arrest of Khatallah proves that the U.S. government will expend any effort necessary to pursue terrorists who harm our citizens. Khatallah currently faces criminal charges on three counts, and we retain the option of adding additional charges in the coming days. Even as we begin the process of putting Khatallah on trial and seeking his conviction before a jury, our investigation will remain ongoing as we work to identify and arrest any co-conspirators. This is our pledge; we owe the victims of the Benghazi attack and their loved ones nothing less.”
“The terrorist attacks on our diplomatic facilities in Benghazi were an affront to our nation and heartbreaking for the families of the four courageous Americans who perished that day,” said John Carlin, Assistant Attorney General for the National Security Division. “Capturing Ahmed Abu Khatallah was a critical step toward bringing him to justice, and we will not rest in our pursuit of the others who attacked our facilities and killed our citizens.”
“In July 2013, Ahmed Abu Khatallah was charged in a sealed criminal complaint in the District of Columbia for his alleged role in the attacks that resulted in the murders of four American citizens, including Ambassador Christopher Stevens, in Benghazi, Libya,” said U.S. Attorney Ronald C. Machen Jr. for the District of Columbia. “Khatallah will now face justice in an American courtroom. We remain committed to holding accountable all of those responsible for the murders of those brave U.S. citizens who were serving our country in Libya.”
The charges were announced upon the unsealing of a three-count criminal complaint. The lead count in the complaint is a death-eligible offense. The complaint, which was filed under seal on July 15, 2013, in the United States District Court for the District of Columbia, charges Khatallah with:-- Killing a person in the course of an attack on a federal facility involving the use of a firearm and dangerous weapon and attempting and conspiring to do the same.
-- Providing, attempting and conspiring to provide material support to terrorists resulting in death.
-- Discharging, brandishing, using, carrying and possession of a firearm during and in relation to a crime of violence.
Khatallah is in U.S. custody, and upon his arrival to the U.S. he will be promptly presented before a federal judge in Washington, D.C., and appointed counsel.
Charges contained in criminal complaints are merely allegations that a defendant has committed a violation of criminal laws, and every defendant is presumed innocent until, and unless, proven guilty.The case is being investigated by the FBI’s New York Field Office with substantial assistance from various other government agencies. The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the National Security Division of the U.S. Department of Justice.
Related Materials:
Complaint
Libyan National Charged with Federal OffensesIn 2012 Attack on U.S. Special Mission and Annex in BenghaziRead the Press Release
FOR IMMEDIATE RELEASE
Tuessday, June 17, 2014WASHINGTON - Ahmed Abu Khatallah, aka Ahmed Mukatalah, a Libyan national approximately 43 years of age, has been charged for his alleged participation in the Sept. 11, 2012, attack on the U.S. Special Mission and Annex in Benghazi, Libya, which resulted in the deaths of four Americans.
“Our nation’s memory is long, and our reach is far,” said U.S. Attorney General Eric Holder. “The arrest of Ahmed Abu Khatallah represents a significant milestone in our efforts to ensure justice is served for the heinous and cowardly attack on the U.S. diplomatic facility in Benghazi. Since that attack – which caused the deaths of Ambassador J. Christopher Stevens, Sean Smith, Tyrone Woods and Glen Doherty – we have conducted a thorough, unrelenting investigation, across continents, to find the perpetrators. The arrest of Khatallah proves that the U.S. government will expend any effort necessary to pursue terrorists who harm our citizens. Khatallah currently faces criminal charges on three counts, and we retain the option of adding additional charges in the coming days. Even as we begin the process of putting Khatallah on trial and seeking his conviction before a jury, our investigation will remain ongoing as we work to identify and arrest any co-conspirators. This is our pledge; we owe the victims of the Benghazi attack and their loved ones nothing less.”
“The terrorist attacks on our diplomatic facilities in Benghazi were an affront to our nation and heartbreaking for the families of the four courageous Americans who perished that day,” said John Carlin, Assistant Attorney General for the National Security Division. “Capturing Ahmed Abu Khatallah was a critical step toward bringing him to justice, and we will not rest in our pursuit of the others who attacked our facilities and killed our citizens.”
“In July 2013, Ahmed Abu Khatallah was charged in a sealed criminal complaint in the District of Columbia for his alleged role in the attacks that resulted in the murders of four American citizens, including Ambassador Christopher Stevens, in Benghazi, Libya,” said U.S. Attorney Ronald C. Machen Jr. for the District of Columbia. “Khatallah will now face justice in an American courtroom. We remain committed to holding accountable all of those responsible for the murders of those brave U.S. citizens who were serving our country in Libya.”
The charges were announced upon the unsealing of a three-count criminal complaint. The lead count in the complaint is a death-eligible offense.
The complaint, which was filed under seal on July 15, 2013, in the United States District Court for the District of Columbia, charges Khatallah with:
-- Killing a person in the course of an attack on a federal facility involving the use of a firearm and dangerous weapon and attempting and conspiring to do the same.
-- Providing, attempting and conspiring to provide material support to terrorists resulting in death.
-- Discharging, brandishing, using, carrying and possession of a firearm during and in relation to a crime of violence.
Khatallah is in U.S. custody, and upon his arrival to the U.S. he will be promptly presented before a federal judge in Washington, D.C., and appointed counsel.
Charges contained in criminal complaints are merely allegations that a defendant has committed a violation of criminal laws, and every defendant is presumed innocent until, and unless, proven guilty.
The case is being investigated by the FBI’s New York Field Office with substantial assistance from various other government agencies. The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the National Security Division of the U.S. Department of Justice.
14-139Lexington County Sherriff James Metts Indicted in Connection with Bribery Scheme to Aid Illegal AliensRead the Press Release
Contact Person: Bill Nettles (803) 929-3000
Columbia, South Carolina ----- United States Attorney Bill Nettles stated today that James R. Metts (68), of Lexington, SC, was charged by a federal grand jury in a 10-count indictment. According to allegations in the Indictment, Metts accepted bribes from friends in return for using his position, power, and influence as Sherriff to interfere with the proper identification and processing of certain illegal aliens detained at the Lexington County Detention Center. Two others, Danny Frazier (46) and Greg Leon (47), both of Lexington, SC, have been charged by the State Grand Jury with bribing Metts.
United States Attorney Bill Nettles was joined in making the announcement by South Carolina Attorney General Alan Wilson, Special Agent in Charge David A. Thomas of the Federal Bureau of Investigation; Assistant Special Agent in Charge Kenneth R. Burkhart of Homeland Security Investigations; and Chief Mark Keel of the State Law Enforcement Division.
“Public corruption at any level will not be tolerated,” said United States Attorney Bill Nettles. “These indictments are a product of a new team at the United States Attorney’s Office whose goal is to use an unprecedented level of cooperation with state and federal agencies in routing out public corruption and returning public trust to the people.”
Metts was charged with Conspiracy to Violate Federal Law and Interfere with Government Function (18 U.S.C. §371), Use of Interstate Facility to Facilitate Bribery in violation of South Carolina Code Sections 8-13-705 and 16-9-220 (18 U.S.C. §1952), Use of Interstate Wire to Defraud the Citizens of Lexington County of Their Right to Honest Services (18 U.S.C. §1343, 1346), and Conspiracy to Harbor Illegal Aliens (8 U.S.C. §1324).
The charge of Conspiracy to Violate Federal Law and Interfere with Government Function carries a maximum sentence of 5 years and a $250,000 fine; each charge of Use of Interstate Facility to Facilitate Bribery carries a maximum sentence of 5 years and a $250,000 fine; each charge of Use of Interstate Wire to Defraud the Citizens of Lexington County of Their Right to Honest Services carries a maximum sentence of 20 years and a $250,000 fine; and the charge of Conspiracy to Harbor Illegal Aliens carries a maximum sentence of 10 years and a $250,000 fine. Additionally, these charges include a maximum term of supervised release following imprisonment of 3 years.
This multi-agency investigation included the Federal Bureau of Investigation; Homeland Security Investigations; State Law Enforcement Division (SLED); and South Carolina Attorney General’s Office, and is assigned to Assistant United States Attorneys Nancy Wicker, Julius N. Richardson, and James H. May for prosecution.
The United States Attorney stated that all charges in this indictment are merely accusations and that the defendant is presumed innocent until and unless proven guilty.
View Full Indictment Here#####
Las Vegas Man Pleads Guilty to False StatementsRead the Press Release
In Connection With The Purchase Of FirearmsCONCORD, NEW HAMPSHIRE – David Reiter, 57, of Las Vegas, Nevada, pleaded guilty to one count of making false material statements in connection with the purchase of eight firearms, announced United States Attorney John P. Kacavas.
On June 1, 2006, Reiter purchased eight firearms from a federally licensed firearms dealer located in New Hampshire. At the time of the purchase, Reiter completed a Form 4473 with respect to the firearms on which he claimed to be a New Hampshire resident and also claimed that he was the actual buyer of the firearms. On the date of the purchase, Reiter was not a New Hampshire resident and he was not the actual buyer of the firearms. Reiter purchased the firearms and delivered them to a third party.
United States Attorney John P. Kacavas praised the efforts of federal law enforcement in this case and said, “ensuring that persons who violate the prohibition against possessing firearms are brought to justice is a central mission of my office. We will continue to work closely with our state and federal partners to enforce federal gun laws.”
Reiter faces a statutory maximum sentence of ten years in prison and a $250,000 fine and is scheduled to be sentenced on September 22, 2014 at 10:30 a.m.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by First Assistant United States Attorney Don Feith.
Johnstown Woman Conspired to Distribute Crack CocaineRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, pleaded guilty in federal court to a charge of conspiracy to distribute and possess cocaine base, in the form commonly known as "crack," United States Attorney David J. Hickton announced today.
Donna M. Hawk, 48, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that from Jan. 31, to April 23, 2013, Hawk conspired with co-defendants to distribute more than 28 grams of cocaine base.
Judge Gibson scheduled sentencing for Dec. 4, 2014, at 10 a.m. The law provides for a total sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Hawk on bond.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Hawk.
Iberia Parish Man Pleads Guilty to Traveling to North Carolina to Have Sex with MinorRead the Press Release
LAFAYETTE, La. – A New Iberia man pleaded guilty to traveling to North Carolina in order to have sex with a minor, U.S. Attorney Stephanie A. Finley announced today.
Ray Paul Dionne, 55, of New Iberia, La., pleaded guilty before U.S. District Judge Richard T. Haik, to one count of travel with the intent to engage in illicit sexual conduct. According to evidence presented at the guilty plea, Dionne admitted that he traveled to North Carolina on two occasions in June and August of 2012 to engage in sexual contact with a minor under the age of 12. On August 27, 2012, when law enforcement learned that Dionne was staying at a North Carolina residence, they entered the residence and discovered Dionne lying in bed with the child.
Dionne faces five to 30 years in prison, five years to life of supervised release, and a $250,000 fine. A sentencing date has not been set.
The Iberia Parish Sheriff’s Office, Boiling Point Springs Police Department, Brunswick County Sheriff’s Office, and the U.S. Marshal’s Service conducted the investigation. Assistant U.S. Attorney John Luke Walker is prosecuting the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Habitual Domestic Violence Offender Sentenced to Seventy Months for Assaulting Pregnant GirlfriendRead the Press Release
ALBUQUERQUE – Tayah Edwards, 41, was sentenced this morning to 70 months in federal prison followed by three years of supervised release for his conviction on assault charges. The sentence was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and Director John Billison of the Navajo Nation Division of Public Safety.
Edwards, an enrolled member of the Navajo Nation who resides in Cudei, N.M., was arrested in Aug. 2013, based on a criminal complaint alleging that he assaulted his domestic partner with dangerous weapons, including a stick, a knife and a rock. According to court filings, the assault occurred at a location within the Navajo Indian Reservation on Aug. 20, 2013. The victim, who was pregnant, sustained numerous injuries, including a compound fracture to her left leg, a large scalp laceration and multiple contusions, as a result of the assault.
On November 12, 2013, Edwards pled guilty to a felony information charging him with assault resulting in serious bodily injury and domestic assault by a habitual offender. Edwards admitted assaulting his intimate partner by striking her in the head and face numerous times and hitting her repeatedly with a stick and a rock. In his plea agreement, Edwards acknowledged that the victim, who was 35 weeks pregnant with the couple’s child at the time of the assault, sustained serious injuries as a result of the assault. Edwards also admitted that he previously has been convicted on at least two occasions for assaulting his spouse or intimate partner in Utah state courts.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. The case was prosecuted by Special Assistant U.S. Attorney David Adams pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project which is sponsored by the Justice Department’s Office on Violence Against Women, and seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Gloucester Woman Pleads Guilty to Making A False Distress CallRead the Press Release
NEWPORT NEWS, Va. – Ashley Strum-Smith, age 29, of Gloucester, Va., pleaded guilty yesterday to Making a False Distress Call.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, and Rear Admiral Stephen Metruck, District Commander of the Fifth Coast Guard District, made the announcement after the plea was accepted by United States District Judge Robert G. Doumar.
Strum-Smith pleaded guilty to a criminal information filed in United States District Court on May 27, 2014. Strum-Smith faces a maximum penalty of six years imprisonment, a fine of $250,000 and $82,764 in restitution when she is sentenced on October 20, 2014 in Norfolk, Va..
According to a statement of facts filed with the plea agreement, on August 13, 2012, Strum-Smith called in a false report of a ship taking on water in the Severn River. Multiple rescue vehicles from the Abingdon Volunteer Fire and Rescue Squad, Gloucester Fire Department, York County Fire Department, Mathews Fire Department and the United States Coast Guard were dispatched to locate and aid the foundering vehicle. After a two hour search costing over $82,000 it was determined that the call was a hoax. Strum-Smith admitted making the false report.
This case was investigated by the Coast Guard Criminal Investigative Service and the Gloucester County Sheriff’s Department Assistant United States Attorney Eric M. Hurt is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Four Additional Alleged MS-13 Members Charged in Violent Racketeering ConspiracyRead the Press Release
Gang Members Allegedly Committed Murders, Attempted Murders, Stabbings,
Kidnapping, Extortion and Witness Tampering
Greenbelt, Maryland – A federal grand jury returned a second superseding indictment today charging the following four additional defendants, all of Hyattsville, in connection with a conspiracy to participate in murder in aid of a racketeering enterprise known as the La Mara Salvatrucha, or MS-13:Hector Daniel Villanueva-Cortez, a/k/a “Muertito,” age 24;
Roni Arriola-Palma, a/k/a “Maniako,” age 24;
Luiz Guzman-Ventura, a/k/a “Casper,” and “Chele,” age 20, and
Jose Rodriguez-Nunez, a/k/a “El Killer,” age 25.The second superseding indictment was returned yesterday, June 16th, under seal and unsealed today at the initial appearance for Arriola-Palma this afternoon in federal court in Greenbelt. Arriola-Palma was arrested this morning by HSI agents, as a result of assistance provided by the Prince George’s County Sheriff’s Office. Charges remain pending against eight of the original defendants, listed below. A ninth original defendant, Francisco Hernandez, aka “Chicle,” age 21, of Silver Spring, Maryland, has pleaded guilty to his participation in the conspiracy. All of the defendants are in custody.
The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Mark A. Magaw of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Alan Goldberg of the Takoma Park Police Department; and Montgomery County State’s Attorney John McCarthy.
“Attacking and dismantling violent criminal enterprises like MS-13 is one of HSI's highest enforcement priorities,” said HSI Baltimore Special Agent in Charge William Winter. "Our investigation revealed that MS-13 is an enterprise that participates in criminal acts, such as murder, attempted murder, violent assaults, witness intimidation and retaliation, and extortion. HSI special agents will continue to work with our local, state and federal law enforcement partners to target MS-13 members and other transnational criminal street gangs that are a rising public safety threat in our communities.”
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland.
The 12 count indictment alleges that from prior to 2009 to February 2014, the defendants were members and associates of MS-13 who planned and committed murders, attempted murders, kidnapping, assaults and robberies in Montgomery and Prince George’s Counties. Gang members also allegedly committed extortion and witness tampering, among other crimes.
More specifically, the second superseding indictment alleges the following additional acts. On January 3, 2010, co-defendant Wilmer Argueta and other MS-13 members attempted to kidnap and assault two victims in the area of East West Highway and Riggs Road. After the two victims fled in different directions, several MS-13 members allegedly caught one of the victims in a nearby wooded area and sexually assaulted her as retribution for associating with a rival gang.
The second superseding indictment alleges that on January 13, 2011, Arriola-Palma drove a van containing defendants Argueta, Carlos Beltran-Flores and Miguel Angel Manjivar. They passed a victim walking on the side of the road near the Fort Totten Metro Station. After getting out of the vehicle, they sprayed the victim with pepper spray, dragged him into the van and held him on the van floor, kicking and stabbing him while they drove to the area of Chillum Manor Road in Hyattsville. The defendants allegedly attempted to murder the victim by strangling him with a belt, stripping him of his clothes and stabbing him repeatedly. The defendants took the victim’s belongings and left him naked and unconscious in the woods, believing that he was dead.
According to the second superseding indictment, from around September to November 2011, defendant Argueta ordered a “greenlight,” which is an order to kill, from inside Prince George County Corrections Facility on a victim who planned to testify against him in Circuit Court for Prince George’s County. The indictment also alleges that on December 4, 2013, Villanueva-Cortez and another MS-13 member attempted to murder a suspected rival gang member.
The indictment further alleges that on December 5, 2012, Rodriguez-Nunez and Guzman-Ventura were driving in the area of 23rd and Sheridan Avenue in Hyattsville when they spotted four individuals crossing a street frequented by rival gang members. After waiting for the individuals to pass, Rodriguez-Nunez and Guzman-Ventura fired several shots at the group, killing one of the victims and attempting to murder the other three.
The indictment also alleges that on March 9, 2014, while in custody in Washington, D.C., defendants Minor Perez-Chach and Melvin Marquez-Sanchez attacked and stabbed another inmate when that person refused their demands to join MS-13.
All four additional defendants face a maximum sentence of life in prison for conspiring to participate in a racketeering enterprise. Villanueva-Cortez also faces a maximum sentence of 10 years in prison for conspiracy to commit murder in aid of racketeering. Villanueva-Cortez, Guzman-Ventura and Rodriguez-Nunez are expected to have their initial appearances in the next week in federal court in Greenbelt.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The following defendants were named in the superseding indictment, and charges remain pending against them in the second superseding indictment:
Jorge Enrique Moreno-Aguilar, aka “Flaco” and “Castigato,” age 20, of District Heights, Maryland;
Juan Alberto Ortiz-Orellana, aka “Chele” and “Furia,” age 25, of District Heights;
Melvin Marquez-Sanchez, aka “Demente,” age 19, formerly of New York;
Carlos Beltran-Flores, aka “Joker,” age 22, of Hyattsville, Maryland;
Wilmer Argueta, a/a “Chengo” and “Happy,” age 22, of Hyattsville;
Eric Antonio Mejia-Ramos, aka “Flaco,” age 20, of Hyattsville;
Minor Perez-Chach, aka “Minor Chach-Perez,” “Little Bad” and “Bryant Sacarias,
age 23, of Hyattsville; and
Miguel Angel Manjivar, aka “Garra” and “Masflow,” age 22, of Hyattsville.United States Attorney Rod J. Rosenstein commended the HSI Baltimore, Prince George’s County and Montgomery County Police Departments, Prince George’s County State’s Attorney’s Office and its Strategic Investigations Unit, the Takoma Park Police Department and Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein also recognized the Prince George’s County Sheriff’s Office, Prince George’s County Department of Corrections, HSI Baltimore’s Operation Community Shield Task Force, and the Maryland Department of Corrections Intelligence Unit for their assistance. Mr. Rosenstein thanked Assistant United States Attorney William D. Moomau and Kevin L. Rosenberg, a Trial Attorney with the Justice Department Criminal Division’s Organized Crime and Gang Section, who are prosecuting this case.
Founder of Ukraine-Based Hardcore Child Sexual Assault Website Sentenced in New Jersey to 30 Years in PrisonRead the Press Release
Investigation Led to Conviction of More Than 600 American Subscribers to Illegal Site
NEWARK, N.J. – A Ukrainian man who founded and ran an international hardcore child sexual abuse website was sentenced today to 360 months in prison for his role in a child exploitation enterprise, U.S. Attorney Paul J. Fishman announced.Maksym Shynkarenko, 35, of Kharkov, Ukraine, previously pleaded guilty to Count 31 of an indictment charging him with conducting a child exploitation enterprise in connection with a website he operated between 2005 and 2008. The investigation into that website has led to convictions in 47 states of more than 600 American consumers of hardcore images of children being sexually assaulted and abused.
Shynkarenko was initially detained in Thailand in January 2009 pending extradition. He was transported to the United States, where he has been in custody since making his initial court appearance in June 2012. He pleaded guilty to the charge Jan. 8, 2014, before U.S. District Judge William H. Walls, who also imposed the sentence today in Newark federal court.
“Shynkarenko worked the supply side of a market that sells images of the most depraved, predatory abuse of children,” said U.S. Attorney Fishman. “Those images endure – as do the wounds inflicted when they were created and when others look at them. Shynkareko appropriately will spend decades of his life paying for significantly fostering the international consumption of documented child sex abuse.”
“The massive HSI investigation that led to today’s sentencing of an international, hardcore child sex abuse website founder is directly tied to more than 600 other criminal convictions for child pornography across 47 states, including dozens of individuals who were already convicted sex offenders,” said Andrew McLees, special agent in charge of U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI) Newark. “Today’s sentencing illustrates HSI Newark’s ongoing commitment to identify and seek prosecution of criminals who destroy lives by preying on innocent children. The website operated by Shynkarenko not only offered subscribers access to thousands of images and videos showing graphic, unimaginable child sexual abuse, but it further exploited these victims by making money off their mistreatment. As we did in this case, HSI and our international law enforcement partners will continue to use every tool at our disposal to track down those who exploit children and bring them to justice.”
According to documents filed in this case and statements made in court:
From at least 2005 through mid-2008, Shynkarenko operated from Ukraine a website, that he helped design, which offered access to thousands of images and videos of child sexual abuse. Subscribers typically paid a fee of $79.99 for a 20-day subscription to the website. Shynkarenko worked in conjunction with other individuals, including one from Siberia who helped process credit card payments in a way that disguised the true nature of the purchases. Shynkarenko and the others operating the website granted access to images and videos to subscribers on hundreds of occasions from 2005 to 2008.
During his guilty plea proceeding, Shynkarenko said he worked with other individuals who advertised the child pornography website over the Internet under names such as “Illegal.CP” and “Pedo Heaven.”
HSI agents first located the child pornography website operated by Shynkarenko in October 2005 – based in part on e-mails recovered from the computer of an individual in Long Branch, N.J. At that time, the banner page of the site identified it as “Illegal.CP,” and the page featured more than a dozen images of minors engaged in sexual acts with other minors and adults. That page declared “[n]ow you are in [sic] few minutes away from the best children porn site on the net!” and “[i]f you join this site you will get tons of uncensored forbidden pics . . . forbidden stories, of course, many videos.” The words “join now” appeared at the top and bottom of the page.
Working with the U.S. Attorney’s Office for the District of New Jersey, HSI agents in Newark were able to identify hundreds of individuals who subscribed to the “Illegal.CP” website between November 2005 and February 2006. Those leads, largely developed through agents’ monitoring of the website, led to what became a three-phase investigation: Operation Emissary, Emissary II, and Thin Ice. In late 2006, agents recovered a database of hundreds of additional individuals whose credit cards had been processed while subscribing to the “Illegal.CP” website. During the third phase in 2008, the continued investigation by HSI agents focused more on the operators of the website, including Shynkarenko, and recovered evidence of hundreds of additional individuals who had attempted to subscribe.
The leads, along with master search warrants prepared by the New Jersey U.S. Attorney’s Office, were distributed to HSI offices and U.S. Attorney’s Offices throughout the nation. The investigation has led to the conviction of more than 600 individuals in 47 states, making the investigation one of the most successful child sexual abuse investigations in the nation’s history. A list of the more than 600 American consumers of images of child sexual abuse convicted as a result of the investigation and the sentences they received was made available at the time of Shynkarenko’s guilty plea, and can be accessed at http://go.usa.gov/9c93.
In addition to the prison term, Judge Walls sentenced Shynkarenko to serve a lifetime of supervised release, and noted he would be required to register as a sex offender, but would likely be deported. In sentencing Shynkarenko, Judge Walls referred to his conduct as “one of the most serious crimes imaginable in our culture as human beings.”U.S. Attorney Fishman credited HSI special agents, under the direction of Special Agent in Charge McLees, for the investigation leading to today’s guilty plea. He also thanked the United States Marshals Service, under the direction of U.S. Marshal Juan Mattos Jr., for its work in transporting Shynkarenko from Thailand, and acknowledged the important work of Thai authorities. U.S. Attorney Fishman also thanked the numerous HSI offices and U.S. Attorney’s Offices around the country which prosecuted the cases that secured the 600 convictions achieved during Operations Emissary and Operation Thin ICE, and thanked the Department of Justice’s Office of International Affairs and Child Exploitation and Obscenity Section for their important roles.
The government is represented by Senior Litigation Counsel Mark J. McCarren and Assistant U.S. Attorney Danielle Walsman of the U.S. Attorney’s Office in Newark and Attorney in Charge Harvey Bartle IV in Trenton.
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Defense counsel: Nicholas Wooldridge Esq. and Arkady Bukh Esq., Brooklyn, N.Y.
Former Maryland Division of Corrections Lieutenant Sentenced for Obstruction of JusticeRead the Press Release
Edwin Stigile III, formerly a lieutenant at the Roxbury Correctional Institution (RCI) in Hagerstown, Maryland, was sentenced today by U.S. District Court Judge James K. Bredar to serve 36 months in prison for obstruction of justice in connection with his involvement in a series of assaults against an inmate, Kenneth Davis, at RCI.
On Jan. 9, 2014, Stigile pleaded guilty to a charge of destruction of records. According to court documents filed in connection with his guilty plea, Stigile acknowledged that he intentionally used a magnetic device to erase incriminating surveillance video footage related to the RCI officers’ assaults of Davis. RCI officers from three different shifts assaulted Davis in March 2008, in retaliation for a prior incident in which Davis struck an officer. Stigile also instructed an officer to hide the magnetic device after the surveillance footage was destroyed. In September 2012, Stigile made false and misleading statements to federal authorities and a federal grand jury in an attempt to obstruct the federal investigation related to the assaults.
“The defendant participated in the cover-up of the assaults suffered by Mr. Davis, and then he lied to cover up this crime,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The defendant’s actions run completely counter to the responsibilities and trust given to a supervisor at a correctional facility. The Justice Department will continue to vigorously prosecute those officers who, like this defendant, try to cover up the misconduct of other officers.”
To date, 16 current or former officers at RCI were convicted in connection with the series of assaults that Davis suffered on March 8 through 9, 2008. One former officer still awaits sentencing.
The case was investigated by the Frederick Resident Agency of the FBI, and prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Sanjay Patel of the Civil Rights Division, with the assistance of Assistant U.S. Attorney Michael Cunningham for the District of Maryland.
Former Manager Pleads Guilty to Embezzling from A Lawrence Credit UnionRead the Press Release
TOPEKA, KAN. – A former manager of a credit union in Lawrence pleaded guilty Tuesday to embezzling more than $93,500, U.S. Attorney Barry Grissom said. She also admitted allowing a teller to steal more than $81,000 from the credit union.
Karolyn J. Stattelman, 42, Topeka, pleaded guilty to one count of theft from a credit union. In her plea, she admitted the crime took place while she was manager of the Jayhawk Federal Credit Union at 2901 Lakeview Road in Lawrence, Kan. She manipulated credit union accounts for money orders, share drafts, ATM and returned checks in order to conceal the thefts.
She also allowed co-defendant Christi Marie Hout, who was a teller, to write checks on Hout’s personal and business accounts when she did not have sufficient funds to cover them. Hout has pleaded guilty to one count of theft of credit union funds.
Stattelman and Hout will be set for sentencing at a later time. They each face a maximum penalty of 30 years in federal prison and a fine up to $1 million.
Grissom commended the FBI and Assistant U.S. Attorney Christine Kenney for their work on the case.
Former Chicago Tax Preparer Sentenced to Six Years in Federal Prison for Tax and Unemployment Insurance Fraud SchemesRead the Press Release
CHICAGO ― A suburban Chicago woman was sentenced to six years in federal prison for operating a federal income tax fraud scheme as well as one of the largest fictitious employer unemployment fraud schemes ever prosecuted nationwide. The defendant, JACQUELINE KENNEDY, who owned a south side tax preparation business, engaged in one scheme to falsely claim federal tax refunds and, together with 15 co-defendants, engaged in a related scheme using the identities of other individuals, including some of her tax service clients, to fraudulently obtain millions of dollars from state unemployment insurance agencies in Illinois, Indiana and four other states.
Kennedy, 41, formerly of Country Club Hills, received the six-year prison term and was ordered to pay more than $4.8 million in restitution last Thursday by U.S. District Judge Joan Lefkow. Kennedy and her co-defendants were indicted in April 2012, and, after initially being released on bond, Kennedy became a fugitive in September 2012 while she continued to commit unemployment insurance fraud. She was arrested in December 2012 and has remained in federal custody.
Judge Lefkow said Kennedy’s conduct “undermines the public’s confidence in the validity of state unemployment programs.” Kennedy has been defiant and “made choices knowing full well they were illegal,” the judge added.
Kennedy pleaded guilty in December to one count of making false claims for tax refunds, one count of wire fraud, and three counts of mail fraud. Kennedy owned and managed ATAP Financial Enterprises, Inc., ATAP Tax & Business Solutions, Inc., and ATAP Tax Services, Inc., (collectively ATAP), all tax preparation businesses located at one time at 1757 West 95th St., in Chicago. Between January 2008 and April 2010, Kennedy prepared more than 200 false income tax returns by attaching false W-2 forms from fictitious entities to her clients’ tax returns to inflate their Earned Income Tax Credit.
Between February 2009 and December 2012, Kennedy and her co-defendants registered 97 fictitious companies they created with state unemployment agencies and then filed more than 900 false unemployment insurance claims for fictional employees who were purportedly terminated from the fictitious companies without fault. Proceeds from the claims were deposited on debit cards that Kennedy and her co-defendants used to withdraw the proceeds of their scheme.
After a sentencing hearing on May 30, Judge Lefkow ruled last week that Kennedy alone was responsible for restitution totaling $4,815,740, consisting of a $546,619 loss resulting from the tax fraud scheme, and an actual loss of $4,269,121 from the unemployment insurance benefits fraud scheme. She also found that Kennedy intended a loss of more than $13.8 million from the unemployment fraud scheme.
In total, Kennedy and co-defendants bilked state unemployment insurance agencies in Illinois, Indiana, Kansas, Minnesota, Mississippi, and Oklahoma out of approximately $9.1 million, including nearly $6 million from the Illinois Department of Employment Security.
In addition to Kennedy, who was a leader and organizer of the schemes, all 15 codefendants have been convicted, and 11 of them have been sentenced to terms ranging from probation to three years in prison, while four others are awaiting sentencing.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; and Tony Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. The Social Security Administration Office of Inspector General also assisted in the investigation.
The government was represented by Assistant U.S. Attorneys Michelle Petersen and Andrianna Kastanek.
Former Attorney Pleads Guilty to Lying to Federal Investigators About His Role in A Million-Dollar Fraud SchemeRead the Press Release
Earlier today, Barry Stephen Zornberg pleaded guilty at the federal courthouse in Central Islip, New York, to lying to federal investigators about his role in a million dollar foreclosure rescue fraud scheme. The scheme ensnared at least ten families, defrauding them of approximately $1.3 million in home equity and caused some of them to lose their homes. Zornberg faces up to five years of imprisonment. As a part of the plea agreement, Zornberg has agreed to pay a total of $1,261,149.50 to the victims of the foreclosure rescue fraud scheme.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, New York Field Office Criminal Division, Federal Bureau of Investigation (FBI); and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the United States Postal Inspection Service (USPIS).
“The defendant, a disbarred attorney, has now admitted to a judge that he lied to federal investigators about the role that he played in this fraud scheme, which took advantage of people who were looking to save their homes from foreclosure. A license to practice law is not a license to steal or lie,” stated United States Attorney Lynch. “We are committed to protecting our communities from the abuses of fraud. I would like to thank our partners at the Federal Bureau of Investigation and the United States Postal Inspection Service for their hard work on this important investigation.”
The foreclosure rescue fraud was perpetrated out of Empire Property Solutions, LLC (AEmpire@) in Bethpage, New York. Empire held itself out to be a home foreclosure rescue specialist operated by John Rutigliano and Kenneth Kiefer. On November 4, 2011, a federal grand jury returned an indictment charging Rutigliano and Kiefer with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and two counts of wire fraud, in violation of Title 18, United States Code, Section 1343. Rutigliano and Kiefer encouraged distressed homeowners to “refinance” their homes with Empire, when, in reality, the homeowner victims were tricked into transferring title in their homes to straw buyers and paying large fees to Empire. Zornberg conducted real estate closings and provided other legal services to Empire. Rutigliano and Kiefer used the escrow accounts of Zornberg’s law firm to hold and transfer funds during the scheme. Zornberg falsely told federal investigators that he advised the victims to not participate in the scheme when, in fact, he encouraged the victims to sign over their homes to Rutigliano and Kiefer, thereby losing title to their homes. Kiefer has since pleaded guilty to the charges.1
The guilty plea proceeding took place before United States Magistrate Judge William D. Wall.
The defendant’s sentencing has not yet been scheduled.
The government’s case is being prosecuted by Assistant United States Attorney Christopher A. Ott.
The Defendants:
BARRY STEPHEN ZORNBERG
Age: 54
Hauppauge, New York
_________________________________________________________________________
1 Rutigliano died while the charges were still pending.
Federal Grand Jury IndictmentRead the Press Release
Contac Persont: Beth Drake (803) 929-3000
Columbia, South Carolina ----- United States Attorney Bill Nettles stated today that a Federal Grand Jury in Columbia, South Carolina, returned an Indictment(s) against the following:Maryland Man Indicted for Wire Fraud
Charles Brown, age 53, of Laurel, Maryland was charged in a 17-count indictment with Wire Fraud, a violation of Title 18, U. S. C. §1343. The indictment charges that, between in or about March of 2009, and continuing to in or about October 2012, Mr. Brown devised scheme to defraud the United States and to obtain money and property from the United States by means of materially false and fraudulent pretenses, representations, and promises. The indictment alleges that scheme involved The Service-Disabled Veteran-Owned Small Business Concern Procurement Program.
The maximum penalty Brown could receive is 20 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Veterans Administration OIG and is assigned to Assistant United States Attorney John Potterfield of the Columbia office for prosecution.
The United States Attorney stated that all charges in this Indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.# # #
Federal Government and State Attorneys General Reach Nearly $1 Billion Agreement with SunTrust to Address Mortgage Loan Origination as Well as Servicing and Foreclosure AbusesRead the Press Release
The Justice Department, Department of Housing and Urban Development (HUD), and the Consumer Financial Protection Bureau (CFPB), along with 49 state attorneys general and the District of Columbia’s attorney general have reached a $968 million agreement with SunTrust Mortgage Inc. (SunTrust) to address mortgage origination, servicing, and foreclosure abuses.
The joint agreement is the result of extensive investigations by federal agencies, including the Department of Justice, HUD and the HUD Office of the Inspector General (HUD-OIG), CFPB and state attorneys general across the country, and includes recoveries for both improper mortgage origination and servicing practices.
“SunTrust’s conduct is a prime example of the widespread underwriting failures that helped bring about the financial crisis,” Attorney General Eric Holder said. “From mortgage origination to servicing to securitization, the Department of Justice is attacking every facet of conduct that led to the Great Recession. We will continue to hold accountable financial institutions that, in the pursuit of their own financial interests, misuse public funds and cause harm to hardworking Americans. We expect that there will be more cases like this to come.”
“This agreement, which totals nearly $1 billion, not only holds SunTrust accountable for years of abusive practices mortgage origination practices; it also provides for restoration,” said Associate Attorney General Tony West. “By the terms of this resolution, SunTrust is required to provide $500 million in consumer relief for homeowners as well as abide by terms that will help to prevent the abuses of the past from being repeated. It's a result attained thanks to the close coordination among our enforcement agency partners throughout the government."
As part of the settlement, SunTrust has agreed to pay $418 million to resolve its potential liability under the federal False Claims Act for originating and underwriting loans that violated its obligations as a participant in the Federal Housing Administration (FHA) insurance program. As a participant in that program, SunTrust had the authority to originate, underwrite and certify mortgages for FHA insurance.
SunTrust admitted that between January 2006 and March 2012, it originated and underwrote FHA-insured mortgages that did not meet FHA requirements, that it failed to carry out an effective quality control program to identify non-compliant loans, and that it failed to self-report to HUD even the defective loans it did identify. SunTrust also admitted that numerous audits and other documents disseminated to its management between 2009 and 2012 described significant flaws and inadequacies in SunTrust’s origination, underwriting, and quality control processes, and notified SunTrust management that as many as 50 percent or more of SunTrust’s FHA-insured mortgages did not comply with FHA requirements. For example, a 2012 internal SunTrust document noted two “significant” issues that had been plaguing the company for years – a “Broken Loan Origination Process” coupled with a “Deficient Government Insuring Process.” Other reports received by SunTrust management described its quality control program as “severely flawed” and “ineffective.” These reports described to management that the volume of problems in the program was “excessive,” and that the error rates were “elevated” and at an “unacceptable level.”
“SunTrust’s irresponsible FHA lending practices caused grievous harm to homeowners and the housing market, as well as wasting hundreds of millions of dollars in taxpayer funds,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “As this settlement demonstrates, we will continue to hold accountable financial institutions that misuse public funds and ruin the lives of hardworking Americans in the pursuit of their own financial interests.”
The servicing portion of the agreement parallels the $25 billion National Mortgage Settlement (NMS) reached in February 2012 between the federal government, 49 state attorneys general and the District of Columbia’s attorney general and the five largest national mortgage servicers. Under the agreement announced today, SunTrust has agreed to provide $500 million in additional relief in the next three years directly to borrowers and homeowners in the form of reducing the principal on mortgages for borrowers who are at risk of default, reducing mortgage interest rates for homeowners who are current but underwater on their mortgages, and other relief. The settlement will likely provide direct benefits to borrowers far in excess of $500 million because SunTrust will not be permitted to claim credit for every dollar spent on the required consumer relief. SunTrust has also agreed to pay $50 million in cash to redress its servicing practices, $40 million of which will be distributed to borrowers and homeowners through the Borrower Payment Fund established by the NMS and administered by the states.
“This agreement with SunTrust is another step forward in the Obama Administration’s ongoing effort to hold mortgage lenders accountable,” said HUD Acting Deputy Secretary Helen Kanovsky. “By using the framework of the National Mortgage Settlement, we will ensure that SunTrust provides mortgage relief to struggling homeowners in the hardest hit communities and changes their worst practices. HUD will continue working with the Department of Justice, CFPB and state attorneys general to hold lenders accountable and require them to institute practices that are beneficial to borrowers and the FHA fund.”
“The culmination of this case today represents the long hours dedicated by auditors, investigators, counsel and the data analytics team in the Office of Inspector General to address the significant problems we identified in SunTrust’s underwriting,” said HUD Inspector General David A. Montoya. “The case begins and ends with the crucial work produced by this office and the commitment by my staff to work with the Department of Justice, HUD and others in a concerted effort to combat misrepresentation and fraud against vital government programs. My office will continue to aggressively seek out instances in which the FHA, and by extension the American taxpayer, are harmed by misconduct that should not be tolerated.”“Deceptive and illegal mortgage servicing practices have pushed families into foreclosure and devastated communities across the nation,” said CFPB Director Richard Cordray. “Today’s action will help homeowners and consumers harmed by SunTrust’s unlawful foreclosure practices. The Consumer Bureau will continue to investigate mortgage servicers that mistreat consumers, and we will not hesitate to take action against any company that violates our new servicing rules.”
“Homeownership is the bedrock of the American dream, and we continue to address the many mortgage servicing nightmares that homeowners across the country experienced for years,” said Iowa state Attorney General Tom Miller. “State attorneys general are working across party lines with our federal partners to address past practices, and we’re trying to ensure that borrowers are treated more fairly in the future.”
The joint federal-state agreement also requires SunTrust to implement significant changes in how they service mortgage loans, handle foreclosures, and ensure the accuracy of information provided in federal bankruptcy court. The agreement requires new servicing standards which will prevent foreclosure abuses of the past, such as robo-signing, improper documentation and lost paperwork, and create dozens of new consumer protections. The new standards provide for strict oversight of foreclosure processing, including third-party vendors, and new requirements to undertake pre-filing reviews of certain documents filed in bankruptcy court.
The new servicing standards ensure that foreclosure is a last resort by requiring SunTrust to evaluate homeowners for other loss mitigation options first. In addition, SunTrust is restricted from foreclosing while the homeowner is being considered for a loan modification. The new standards also include procedures and timelines for reviewing loan modification applications and give homeowners the right to appeal denials. SunTrust will also be required to simplify the process for homeowners needing help by creating a single point of contact for borrowers seeking information about their loans and—importantly—maintaining adequate staff to handle calls.
The agreement will be filed as a consent judgment in the U.S. District Court for the District of Columbia. Compliance with the agreement will be overseen by an independent monitor, Joseph A. Smith Jr., who is also the monitor for the NMS. Smith has served as the North Carolina Commissioner of Banks since 2002, and is also the former Chairman of the Conference of State Banks Supervisors (CSBS). The monitor will oversee implementation of the servicing standards required by the agreement; impose penalties of up to $1 million per violation (or up to $5 million for certain repeat violations); and publish regular public reports that identify any quarter in which a servicer fell short of the standards imposed in the settlement.
The agreement resolves potential violations of civil law based on SunTrust’s deficient mortgage loan origination and servicing activities. The agreement does not prevent state and federal authorities from pursuing criminal enforcement actions related to this or other conduct by SunTrust, or from punishing wrongful securitization conduct that is the focus of the Residential Mortgage-Backed Securities Working Group of President Barack Obama’s Financial Fraud Enforcement Task Force. The agreement does not prevent the CFPB from pursing civil enforcement actions against SunTrust for violations of the CFPB’s new mortgage servicing rules that took effect on Jan. 10, 2014. State attorneys general also preserved, among other things, all claims against the Mortgage Electronic Registration Systems (MERS), and all claims brought by borrowers. Additionally, the agreement does not prevent any action by individual borrowers who wish to bring their own lawsuits.SunTrust is a mortgage lender and servicer headquartered in Richmond, Virginia, and is a wholly-owned subsidiary of SunTrust Banks Inc., a bank and financial services company headquartered in Atlanta, Georgia.
The settlement announced today was the result of investigations conducted by the Civil Division and the U.S. Trustee Program of the Department of Justice, state attorney general offices throughout the country, HUD-OIG and HUD’s FHA, and the CFPB. The Department of the Treasury, the Federal Trade Commission, the Federal Deposit Insurance Corporation, the Department of Veterans Affairs and the U.S. Department of Agriculture also made critical contributions.
The joint federal-state agreement is part of enforcement efforts by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force, visit: www.stopfraud.gov.Ephren Taylor, II, Leader of “Building Wealth Tour,” Arrested on Fraud ChargesRead the Press Release
ATLANTA - Ephren Taylor, II, has been arrested on a federal indictment charging him and another defendant with defrauding investors across the country of more than $5 million.
“Mr. Taylor came into our community, promising hard-working citizens a way to make their retirement money go farther,” said United States Attorney Sally Quillian Yates. “The investments he pitched proved to be worthless, along with his promises.”
“This case demonstrates the wide-reaching effects of fraudulent investment schemes, its impact on innocent victims, our northern Georgia communities, and the importance of cooperation among our law enforcement partners to suppress this type of criminal activity," said Reginald Moore, Special Agent in Charge of the United States Secret Service Atlanta Field Office.
“Illegal activity involving the investment industry has brought financial ruin to many Americans,” stated Special Agent in Charge Veronica Hyman-Pillot, IRS Criminal Investigation. “The indictment of Mr. Taylor illustrates our commitment to pursuing those individuals who victimize investors, violate the public trust and enrich themselves financially at the expense of the investor.”
According to United States Attorney Yates, the charges, and other information presented in court: From at least April 2009 through October 2010, Ephren Taylor, II, then CEO of City Capital Corporation, and his co-defendant Wendy Connor, the former COO of City Capital Corporation, participated in a conspiracy to defraud investors. The scheme allegedly defrauded hundreds of investors of more than $5 million nationwide.
As part of the scheme, Taylor traveled around the country on a “Building Wealth Tour,” where he gave wealth management seminars to church congregations. During this tour, Taylor claimed to be a socially conscious investor and falsely claimed that 20% of profits were donated to charity. One of the churches on the “Building Wealth Tour” was the New Birth Missionary Baptist Church in Lithonia, Ga. While there, Taylor and Connor met potential investors to discuss possible investments. Over 80 individuals from Georgia lost more than $2 million because of Taylor’s scheme.
The investments pushed by Taylor included investing in promissory notes, where the funds invested would be used to support small businesses, such as laundries, juice bars, and gas stations. Taylor is alleged to have falsely represented the revenues and returns for these businesses knowing that they were not profitable.
Taylor also pushed an investment in sweepstakes machines. Sweepstakes machines are computers loaded with various games that allow players to win cash prizes. Taylor published offering materials that falsely claimed the average sweepstakes machine would generate 300% investor returns. He also stated that the sweepstakes machine investments were 100% risk free.
Taylor allegedly knew that the investments he was touting were not profitable and that investors were not receiving actual returns from their investments.
As part of the scheme, Taylor, 31, of Overland Park, Kan., encouraged investors to use self-directed IRAs to make their investments. Many victims transferred their retirement savings to trust companies that acted as custodians for self-directed IRAs, expecting these funds to be used to fund the investments pushed by Taylor.
After victims funded their self-directed IRAs, Taylor and others directed the use of those funds. The money allegedly was not invested as promised, but rather was used to pay ongoing business expenses of City Capital, pay personal expenses for Taylor, and in some limited instances, to pay supposed returns to earlier investors.
Taylor was indicted by a federal grand jury on June 10, 2014.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the United States Secret Service and Internal Revenue Service Criminal Investigation.
Assistant United States Attorney Christopher J. Huber is prosecuting 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/.
Deported Alien Charged with Illegally Returning to U.S.Read the Press Release
PITTSBURGH - An alien found in Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of illegal re-entry after deportation, United States Attorney David J. Hickton announced today.
The one-count indictment named Jose Hernandez-Segura, 35, of El Salvador, as the sole defendant.
According to the indictment presented to the court, Jose Hernandez-Segura, an alien, was formally removed from the United States by United States Immigration and Customs Enforcement on Jan. 25, 2012. Jose Hernandez-Segura was found to be illegally present in Allegheny County, Pennsylvania, on April 19, 2014.
The law provides for a maximum total sentence of 2 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The U.S. Department of Homeland Security, Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Denver Man Ordered Held Without Bond After Being Arrested for Receipt and Possession of Child PornographyRead the Press Release
U.S. Postal Inspectors and U.S. Attorney’s Office release photo of defendant and ask for the public’s help to see if the defendant had inappropriate sexual contact with minors
DENVER – A Denver man facing child pornography charges was ordered held without bond yesterday by U.S. Magistrate Judge Michael J. Watanabe after the court found the defendant, John Lee Mudgett, was a danger to the community. Mudgett, age 67 of Denver, faces charges of receiving and possessing child pornography, United States Attorney John Walsh and Denver Division U.S. Postal Inspector in Charge Adam P. Behnen announced. He was arrested without incident on June 4, 2014.
According to the affidavit in support of the Criminal Complaint, during an undercover investigation, it was determined that Mudgett had made 34 orders of child pornography via the internet, purchasing 70 items costing him a total of $2,047.92. These orders were made between July 9, 2007 and April 1, 2011. On June 4, 2014, Postal Inspectors and other law enforcement agents executed a search warrant at the residence of John Lee Mudgett. The majority of the items he ordered from the website and that were delivered via U.S. Mail were recovered from his residence. Inspectors also found a large cache of child pornography and child erotica during the search. The child pornography and child erotica were located in both electronic and hard copy formats.
The residence consisted of two bedrooms, one of which was utilized as a home office. Both the bedroom and home office contained framed photographs of nude, prepubescent males and females hanging on the walls. In addition to the framed photographs, there were printouts of child pornography and child erotica in plain view in the residence. Some of the photographs contained visual depictions of minors engaging in sexually explicit conduct. Numerous pairs of boy’s underwear were also located in Mudgett’s home as was a collection of newspaper articles that were about rape and/or the murder of children.
Postal Inspectors and prosecutors are asking for the public’s help to determine if Mudgett had inappropriate sexual contact with minor children. Please refer to attached photo of John Mudgett. If anyone has information about potential criminal activity regarding Mudgett and minors they are asked to call the U.S. Postal Inspection Service at 303-313-5345.
“The defendant faces serious charges related to the receipt and possession of child pornography,” said U.S. Attorney John Walsh. “There is some concern that Mudgett may have had inappropriate sexual contact with minors. I want to encourage anyone who may have knowledge of this type of conduct to come forward and notify the U.S. Postal Inspection Service.”
“The demand for child pornography facilitates sex crimes against children. Protecting children from these egregious crimes is a high priority for the U.S. Postal Inspection Service,” said Adam P. Behnen, Inspector in Charge of the U.S. Postal Inspection Service in Denver. “We continue to aggressively investigate, apprehend and assist in the prosecution of individuals who seek to exploit children via the U.S. Mail.”
If convicted of the one count of receipt of child pornography, Mudgett faces not less than 5 years, and up to 20 years imprisonment, and up to a $250,000 fine. If convicted of the one count of possession of child pornography, the defendant faces not more than 10 years imprisonment, and up to a $250,000 fine.
This case is being investigated by the U.S. Postal Inspection Service.
The defendant is being prosecuted by Assistant U.S. Attorneys Judith Smith and Colleen Covell.
A criminal complaint is a probable cause charging document. Anyone accused of committing a federal felony crime has a Constitutional right to be indicted by a grand jury.
The charges contained in the Criminal Complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Defendant Sentenced on Federal Firearm ChargeRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced today that Marshall Mayhew of Tuscaloosa, Alabama, was sentenced following a March 2014 guilty plea to a charge of possession of a stolen firearm. Mayhew has multiple felony convictions over the last fifteen years for a variety of property crimes. As a result of his numerous convictions, Mayhew was determined to have a criminal history category of VI under the U.S. Sentencing Guidelines. By virtue of his prior felony convictions, Mayhew is prohibited from possessing firearms or ammunition. Mayhew pled guilty to possession of a stolen AR-15 type rifle which occurred on September 26, 2013.
Possession of a stolen firearm is a violation of Title 18, United States Code Section 922(j). United States District Court Judge Callie V.S. Grande imposed the statutory maximum sentence of 10 years imprisonment, to be followed by 3 years of supervised release.
This case was investigated by Investigator Ron Baggette with the Clarke County Sheriff’s Office and Special Agent Nicholas P. Murphy of the Bureau of Alcohol, Tobacco, Firearms & Explosives, with assistance from the Marengo County Sheriff’s Office.
Colorado Man Sentenced for Conspiracy to DistributeRead the Press Release
And Distribution Of Methamphetamine In New HampshireCONCORD, NEW HAMPSHIRE – Daniel Preston, 36, of Colorado Springs, Colorado, was sentenced in United States District Court for the District of New Hampshire to 60 months in prison for engaging in a conspiracy to distribute methamphetamine and distribution of methamphetamine, announced United States Attorney John P. Kacavas.
In January 2012, members of the New Hampshire State Police and United States Postal Inspection Service seized a package containing approximately one ounce of methamphetamine, a schedule II controlled substance, which was destined for a resident of Milton, New Hampshire. The package was shipped by Daniel Preston, a resident of Colorado Springs, Colorado. During an ensuing investigation, law enforcement determined that from January 2011 through January 2012, Preston engaged in the weekly shipment of ounce quantities of methamphetamine from Colorado to New Hampshire. Once the methamphetamine arrived in New Hampshire, it would be repackaged and distributed.
The case was investigated by the New Hampshire State Police and the United States Postal Inspection Service, and prosecuted by Assistant United States Attorney Terry L. Ollila.
Co-Defendant in “Loomis Wealth Solutions” Mortgage Fraud Case Pleads GuiltyRead the Press Release
SACRAMENTO, Calif. —Joseph Gekko, 45, of Yorba Linda, pleaded guilty today to three counts of wire fraud in connection with a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced.
Gekko’s guilty plea marks another event in a wide-ranging series of prosecutions related to Loomis Wealth Solutions, a “wealth-building” program offered to the public in California, Illinois, Washington, and elsewhere, from 2006 through 2008. According to indictments, persons connected to Loomis Wealth Solutions are alleged to have committed various acts of investment fraud, mortgage fraud, and money laundering.
Gekko participated in a mortgage fraud scheme that caused more than $10 million in losses to mortgage lenders and others. Gekko controlled an escrow company called Lender Services Direct (LSD), in Mission Viejo, Calif., and Tulsa, Okla. According to his plea agreement, Gekko admitted to preparing fraudulent Form HUD-1 Final Settlement Statements that reflected false sales prices and that indicated down payments had been made by the nominee buyers when in fact they had not.
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys Paul A. Hemesath and Jared Dolan are prosecuting the case.
Gekko is scheduled to be sentenced by United States District Judge John A. Mendez on September 23, 2014. Gekko faces a maximum statutory penalty of twenty years in prison and a $250,000 fine. The actual sentence, however, will 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.
California Man Indicted for Possession of an Unregistered FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fontana, California, man has been indicted by a federal grand jury for Possession of an Unregistered Firearm.
Gregorio Aguirre, age 26, was indicted on May 20, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on June 12, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Aguirre possessing an unregistered firearm made from a Remington Model 12, .22 Caliber Rifle, on April 12, 2014, in South Dakota.
The charge is merely an accusation and Aguirre is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Unified Narcotics Enforcement Team, the South Dakota Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Aguirre was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for August 19, 2014.
Bountiful Resident Pleads Guilty to Filing False Tax Return in Connection with work with Health Care Facilities; Sentenced to One Year in Federal PrisonRead the Press Release
SALT LAKE CITY - Jon Robertson of Bountiful pled guilty to one count of filing a false tax return in U.S. District Court in Salt Lake City Monday afternoon. U.S. District Judge Clark Waddoups accepted the plea and imposed a sentence of one year and a day.
From 2002 until 2004, Robertson was employed by Infinia, Inc., as its president and had control over the day-to-day operations of the company. Infinia was a Utah-based company that operated nursing homes in several states around the country. Infinia was a closely-held corporation that was started and owned by Robertson’s brother, Scott Robertson. As president of Infinia, Jon Robertson controlled the finances of the company and had substantial discretion to move the company’s money around as he desired. Robertson was removed as president of Infinia in 2004 but remained actively involved until 2006 in the operations of the company and its finances.
While Robertson was affiliated with Infinia, he transferred large sums of Infinia money through unofficial, non-salary payments to personal bank accounts and other accounts in his control. Robertson did not report this money as income to the IRS or to Infinia.
Robertson pled guilty to filing a false tax return in tax year 2003 for failing to report the large sums of Infinia money he surreptitiously transferred to personal accounts. As a part of his sentence, he must pay restitution to the IRS arising out of his criminal activities in the amount of $150,000. The court also ordered him to work with the IRS to resolve other outstanding tax matters.
The case was investigated by special agents of IRS-Criminal Investigation and prosecuted by attorneys from the Department of Justice’s Tax Division and the U.S. Attorney’s Office in Utah.
Bellevue Man with Huge Cache of Images of Children Being Raped and Sexually Molested Sentenced to Nine Years in PrisonRead the Press Release
A Bellevue, Washington man was sentenced today to nine years in prison and 25 years of supervised release for distribution of child pornography, announced U.S. Attorney Jenny A. Durkan. WILLIAM MERRILL ORR, 53, was arrested in Iowa in June 2012, and pleaded guilty in January 2014. ORR had relocated to Iowa after the Bellevue residence he shared with his parents was searched in 2011. Agents seized over seven terabytes of digital storage from the home, and forensic analysis revealed more than 800,000 images and videos of children being raped and sexually assaulted. Both the data storage capacity and the volume of child pornography were the largest seized in the Western District of Washington at that time. In line with a recent U.S. Supreme Court ruling, U.S. District Judge John C. Coughenour ordered restitution for the identifiable children who requested it from ORR. At sentencing, Judge Coughenour referenced the life-long therapy the victims will require to cope with the horrific sexual abuse depicted in ORR’s collection.
According to records filed in the case, ORR came to the attention of law enforcement when he used a peer to peer file sharing network to provide images of child rape and abuse to an undercover Homeland Security Investigation agent. Even after the search warrant was served at ORR’s Bellevue home, and he moved to Iowa, he continued to collect child pornography on a new computer.
“Every one of the more than 800,000 images and video files in Orr’s possession depicted a child being victimized,” said Brad Bench, special agent in charge of ICE’s Homeland Security Investigations in Seattle. “We must not forget these are real children – real victims – who are subjected to sexual violence. Those who trade child pornography over the Internet are a part of a disturbing cycle of violence against children. HSI will continue to aggressively target those who prey on and sexually exploit children. We owe it to youngsters, who will carry the emotional and physical scars of these crimes with them for the rest of their lives.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by ICE’s Homeland Security Investigations and was prosecuted by Assistant United States Attorney Marci Ellsworth.Auburn Man Sentenced to 7 Years in Prison for Distributing Images of Child RapeRead the Press Release
A 39- year-old Auburn, Washington man, who lived less than a block from an elementary school, was sentenced today to seven years in prison for distributing images of children being raped and sexually molested by adults, announced U.S. Attorney Jenny A. Durkan. HANK HIRST, pleaded guilty to distribution of child pornography in February 2014. He was arrested in June 2013 following a search of his home and electronic devices. The search revealed HIRST had more than 2,700 images and 447 videos showing children being raped and sexually molested. HIRST had a 170 page manual on his computer about pedophilia and how to groom children for sexual abuse. At sentencing U.S. District Judge John C. Coughenour imposed 25 years of supervised release and ordered HIRST to register as a sex offender following his release from prison.
According to records filed in the case, HIRST came to the attention of law enforcement after he emailed another person in Ohio a video of a toddler being raped by an adult man. In addition to the videos of child sexual assault found on HIRST’s computers and other electronic devices, investigators found videos on HIRST’s computer taken from his window of children playing in the neighborhood. The manual HIRST had downloaded onto his computer described how pedophiles should conduct such surveillance of children looking for those vulnerable to sexual abuse.
The case was investigated by the Federal Bureau of Investigation and the Auburn Police Department.
The case was prosecuted by Assistant United States Attorney Ehren Reynolds.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Attorney General Holder Delivers Statement on the Arrest of Ahmed Abu Khatallah for His Role in Attack in Benghazi, LibyaRead the Press Release
WASHINGTON—Attorney General Eric Holder released the following statement Tuesday regarding the arrest of Ahmed Abu Khatallah for his role in the attack on the U.S. facilities in Benghazi, Libya:
“Our nation’s memory is long and our reach is far. The arrest of Ahmed Abu Khatallah represents a significant milestone in our efforts to ensure justice is served for the heinous and cowardly attack on our facilities in Benghazi. Since that attack – which caused the deaths of Ambassador Christopher Stevens, Sean Smith, Tyrone Woods, and Glen Doherty – we have conducted a thorough, unrelenting investigation, across continents, to find the perpetrators. The arrest of Khatallah proves that the U.S. government will expend any effort necessary to pursue terrorists who harm our citizens. Khatallah currently faces criminal charges on three counts, and we retain the option of adding additional charges in the coming days. Even as we begin the process of putting Khatallah on trial and seeking his conviction before a jury, our investigation will remain ongoing as we work to identify and arrest any co-conspirators. This is our pledge; we owe the victims of the Benghazi attack and their loved ones nothing less.”
Alabama Tax Return Preparer Pleads Guilty to Filing False Tax ReturnsRead the Press Release
Russell Burroughs pleaded guilty today to aiding in the preparation of false tax returns in U.S. District Court for the Middle District of Alabama, the Justice Department and Internal Revenue Service (IRS) announced.
According to court documents, during the 2008 through 2010 tax seasons, Burroughs owned and operated Computer Services, a tax return preparation business located in Montgomery, Alabama. Burroughs admitted he falsified information for his clients on their tax returns in order to illegally generate higher tax refunds. He acknowledged that he intentionally included false items such as false business income or loss, false deductions, false real estate rental losses, false education credits and false energy credits in order to inflate his clients’ refunds.
As part of his plea, Burroughs agreed to pay restitution to the United States in the amount of $211,960 and to be to be permanently enjoined from preparing or filing federal tax returns for others in the future.
As a result of his plea, Burroughs faces a maximum sentence of three years in prison, a $250,000 fine and one year of supervised release.
This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Katherine Reinhart, Charles M. Edgar Jr. and Michael Boteler of the Justice Department’s Tax Division are prosecuting the case.
Akeem Bethea-harris of Philadelphia Sentenced to Five Years for Possession with Intent to Distribute Crack CocaineRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on June 16, 2014, Akeem Bethea-Harris, 26, of Philadelphia, Pennsylvania, was sentenced to five years in federal prison after his guilty plea to a charge that he possessed crack cocaine with intent to distribute it. Chief United States District Judge Christina Reiss, sitting in Rutland, also ordered that Bethea-Harris serve four years of supervised release following his prison term.
According to court records, Bethea-Harris’s criminal history includes a felony for possession of a firearm without a license, three felony drug convictions, and several probation violations. On May 2, 2013, investigators with the U.S. Drug Enforcement Administration and the Federal Bureau of Investigation observed Bethea-Harris get off a Greyhound bus at the Burlington International Airport. Bethea-Harris was wearing unusually heavy clothing for a very warm day. Agents encountered Bethea-Harris in Colchester as he got out of a taxicab. Agents subsequently recovered approximately 60 grams of crack cocaine secreted on Bethea-Harris’s person.
This case was investigated by the DEA and the FBI, with the assistance of the Burlington and Colchester Police Departments. This case was prosecuted by Assistant United States Attorney Kevin J. Doyle. Bethea-Harris is represented by Federal Defender Michael L. Desautels.
72 Linked to Broadway Gangster Crips Criminal Street Gang Charged in Federal Racketeering Indictment That Alleges Murders, Robberies and Drug Sales in South Los AngelesRead the Press Release
LOS ANGELES – More than 1,300 FBI agents and LAPD officers this morning arrested 50 people associated with the Five Deuce Broadway Gangster Crips, a street gang that claims control of a South Los Angeles neighborhood and drug sales in an area just west of the “Skid Row” district of Los Angeles. Those taken into custody are among 72 defendants named in a 213-page racketeering indictment that outlines two decades of criminal conduct, including murders, robberies, extortion, witness intimidation and narcotics trafficking.
The investigation into the Broadway Crips was called Operation “Gremlin Riderz,” because authorities focused on a particularly violent “clique” – or subset of the gang – called the Gremlin Riderz. According to the 112-count indictment that was unsealed this morning, the Broadway Crips, which has an estimated 200 members, operated as a criminal enterprise that used violence and intimidation to control an area centering on the intersection of 52nd Street and South Broadway in South Los Angeles. The gang was formed in the 1970s to confront other African-American street gangs, according to the indictment, which alleges that the enterprise has grown into a violent and criminal enterprise that conducts annual meetings and enforces a strict set of rules.
“Criminal street gangs make their livelihood by ruthlessly preying on the innocent people that live in the neighborhoods they claim as territory,” said United States Attorney André Birotte Jr. “What makes the conduct of this gang particularly insidious is not only the violent crimes alleged, but also the exploitation of Skid Row drug users who are already living in difficult circumstances.”
The defendants named in the federal indictment face various charges, including conspiracy to engage in racketeering activity in violation of the federal Racketeer Influenced and Corrupt Organizations Act; violent crimes in aid of racketeering; conspiracy to interfere with commerce by conducting a series of robberies that targeted bank customers; weapons offenses; and various drug trafficking activities involving crack cocaine, cocaine, methamphetamine, phencyclidine (PCP), Ecstasy, marijuana and codeine.
The indictment specifically alleges that members of the gang:
committed four murders, dating back to 1987, that include fatal shootings of unarmed men with no gang affiliations in 2003 and 2012;
threatened a surviving victim of the 2003 shooting, which followed a concert at the House of Blues on the Sunset Strip;
conspired to murder a fellow gang member who had provided a statement to law enforcement in relation to the 2012 murder incident in which a total of four people with no gang ties were shot, including a 10-year-old girl on a bicycle;
fired shots at California Highway Patrol Officers who were pursuing gang members two years ago;
engaged in a series of violent, “follow-home” robberies that targeted customers of South Bay banks; and
participated in numerous narcotics sales near schools and playgrounds.
In addition to committing crimes in its claimed territory east of the Harbor Freeway, the indictment alleges that the Broadway Crips sell drugs near the Skid Row section of downtown Los Angeles. “This area is desirable to the gang because it is close to Skid Row, where there is a large and vulnerable customer base of drug addicts and mentally ill persons,” according to the indictment.
Out of 72 defendants named in the federal indictment, 48 were arrested this morning. Two more people were arrested on local charges, meaning that a total of 50 were arrested today. Seventeen defendants named in the grand jury indictment were already in custody on unrelated charges. Authorities are continuing to search for eight defendants, including one who faces local charges.
All 72 defendants named in the racketeering indictment face mandatory minimum sentences of 10 years in federal prison if they are convicted. Many of the defendants face potential sentences of life without parole.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
The investigation into the Broadway Crips was conducted by agents and officers with the Federal Bureau of Investigation and the Los Angeles Police Department. Considerable assistance was provided during this investigation by the California Department of Corrections and Rehabilitation, the Torrance Police Department, the Buena Park Police Department, the El Segundo Police Department, the San Bernardino Police Department and the Los Angeles City Attorney’s Office.
Additionally, several agencies provided substantial assistance during this morning’s takedown, including the Los Angeles Sheriff’s Department, the Hawthorne Police Department, the Pasadena Police Department, the Inglewood Police Department and the Los Angeles Fire Department.
Operation Gremlin Riderz is a result of a partnership between the FBI and the Los Angeles Police Department under the auspices of the FBI’s Task Force on Violent Crime in the City of Los Angeles. This task force is one of dozens of such partnerships throughout the United States, known as Safe Streets Task Forces, funded for the purpose of assisting local police in identifying and addressing violent crime in America.
Release No. 14-075
Monday 16 June 2014
Yale Employee Charged with Operating Kickback SchemeRead 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 Hartford has returned a four-count indictment charging GEORGE DOBUZINSKY, 57, of Durham, with conspiracy and fraud offenses stemming from a kickback scheme he allegedly operated while employed at Yale University.
The indictment was returned on June 11. DOBUZINSKY appeared today before U.S. Magistrate Judge Holly B. Fitzsimmons in Bridgeport and entered a plea of not guilty. He was released on a $300,000 bond.
According to the indictment and to statements made in court, DOBUZINSKY has been employed by Yale University as a project manager responsible for obtaining vendors to complete audio/visual projects on Yale’s campus. It is alleged that between 2005 and 2013, DOBUZINSKY arranged to receive tens of thousands of dollars in kickback payments from vendors in exchange for awarding them additional audio/visual project work. At first, DOBUZINSKY directed the vendors to make kickback payments to him in the form of checks payable to an entity owned by DOBUZINSKY’s friend, who later provided the money to DOBUZINSKY. Later in the scheme, DOBUZINSKY directed an individual to start a limited liability corporation (“LLC”) to which vendors could direct their kickback payments. The individual would deposit the checks at bank branches in Connecticut, and DOBUZINSKY and the individual would spend the money on household expenses.
The indictment further alleges that at various times and during holidays, DOBUZINSKY would request and receive gifts from vendors, including steakhouse gift certificates and electronic equipment for personal use.
The indictment charges DOBUZINSKY with one count of conspiracy to commit wire fraud and three counts of honest services wire fraud. Each charge carries a maximum term of imprisonment of 20 years.
The case has been assigned to Senior U.S. District Judge Warren W. Eginton in Bridgeport.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala.
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.
PUBLIC AFFAIRS CONTACT:
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Tom Carson
(203) 821-3722
[email protected]Wyoming Man Pleads Guilty to Tax FraudRead the Press Release
Sonny Pilcher of Casper, Wyoming, pleaded guilty to tax fraud today in the U.S. District Court for the District of Wyoming, the Justice Department and Internal Revenue Service (IRS) announced. The sentencing hearing was set for Oct. 28, 2014 before U.S District Judge Alan B. Johnson.
According to the charging document, Pilcher attempted to obstruct and impede the IRS. Pilcher did this by claiming a false bad debt expense of $258,000 on his 2008 Form 1040 tax return, and by paying his employees in cash to evade paying employment taxes. Pilcher faces a statutory maximum sentence of 36 months in prison, a $250,000 fine and may be ordered to pay restitution to the IRS.
This case is being prosecuted by Trial Attorneys Lori A. Hendrickson and Ignacio Perez de la Cruz of the Justice Department’s Tax Division and was investigated by IRS – Criminal Investigation Special Agents in the Cheyenne, Wyoming, field office.
Washington, D.C. Man Sentenced to 12 Years for Robbing Banks and Possessing Child PornographyRead the Press Release
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Devontae West, age 26, of Washington, D.C., today to 12 years in prison, followed by 15 years of supervised release, for possession of child pornography and conspiracy to commit bank robbery. Chief Judge Chasanow ordered that upon his release from prison, West must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to his plea agreement, West and his co-conspirators stole vehicles to use during bank robberies, designated a co-conspirator to act as a getaway driver, wrote demand notes to present to bank tellers, used juveniles to enter the banks to demand money, used cell phones to maintain constant contact during the bank robberies and divided the proceeds of the bank robberies amongst themselves.
More specifically, on five occasions from March 20 to May 22, 2013, West and others, including juveniles, drove to the following bank branches where his conspirators stole a total of $14,598: SunTrust Bank in Clifton, District Heights and Forestville, Maryland; Capitol One Bank in Landover Hills, Maryland; and TD Bank in Washington, D.C. Also, on May 13, 2013 West and his conspirators drove to Capitol One Bank in Suitland, Maryland to rob the bank, but left without having obtained any money.
Additionally, on May 5, 2013 West had sex with a 15 year girl who he had directed to help him rob banks. West took eight pictures of the girl having sex with him. These pictures were on West’s cell phone when he was arrested.Co-conspirator Calvin Manning also pleaded guilty to bank robbery. Manning admitted to robbing the Sun Trust Bank in District Heights on March 25, 2013, which is one of the bank robberies in which West participated. Chief Judge Chasanow sentenced Manning on June 12, 2014 to four years in prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas and Assistant U.S. Attorney Thomas Sullivan, who prosecuted the case.
U.S. Attorney Charges Manhattan Man with AttemptedEnticement and Sexual Exploitation of A MinorRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York announced today the filing of federal charges against STEPHEN P. BROWN. The Complaint charges that BROWN communicated with an individual he believed to be an 11-year-old boy via emails and instant messages, and made plans to meet the boy at a hotel in Peekskill to engage in sexual activity and take sexually explicit photographs. In March 2014, BROWN was arrested in Peekskill, New York, by New York State law enforcement authorities when he arrived at the designated meeting-place to meet the boy. The federal charges filed today follow state charges against BROWN in Manhattan, Westchester County, Sullivan County and Albany County. BROWN, who is currently in jail in Albany County, is scheduled to be presented in federal court on Wednesday, June 18.
According to the allegations of the Complaint:
Between January 14, 2014 and March 4, 2014, STEPHEN P. BROWN, using email addresses “[email protected]” and “[email protected],” engaged in sexually explicit online communications with a New York State Police Investigator who was acting in an undercover capacity and posing as an 11-year old boy. During these communications, BROWN discussed various sexual acts he wished to perform on the boy, requested that the boy provide BROWN with sexually explicit photographs of the boy, and made a plan to meet the boy at a hotel in Peekskill, New York for the purpose of engaging in sexual activity. On March 4, 2014, BROWN was arrested at the Peekskill hotel after as he went to meet with whom he thought was the 11-year old boy.
BROWN, 62, of Manhattan is charged with one count of attempted sexual exploitation and one count of attempted enticement. With respect to the attempted sexual exploitation, he faces a minimum sentence of 15 years’ imprisonment and a maximum sentence of 30 years’ imprisonment. With respect to the attempted enticement, he faces a minimum sentence of 10 years’ imprisonment and a maximum sentence of life. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge
Mr. Bharara praised the efforts of the Federal Bureau of Investigation, the New York County District Attorney’s Office, the Sullivan County District Attorney’s Office, the Westchester County District Attorney’s Office, the Albany County District Attorney’s Office, the City of New York Police Department, the New York State Police, and the Rockland County Computer Crimes Task Force in connection with this investigation.
Mr. Bharara stated that the investigation is ongoing. Mr. Bharara requests that any individuals who believe they may have information concerning STEPHEN P. BROWN that may be relevant to the investigation contact the Federal Bureau of Investigation in Goshen, New York at 1-845-615-1700.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorney Marcia S. Cohen is in charge of the prosecution.
The charges and allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Two Brothers Indicted for Receiving over $16.5 Million in Fraudulent Tax RefundsRead the Press Release
Greenbelt, Maryland - A federal grand jury has indicted Sean Aude Gallman, age 37, of Upper Marlboro, Maryland, and his brother Eric Maurice Gallman, age 41, of Huntersville, North Carolina, today on charges arising from a $16.5 million fraudulent tax scheme.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“Because of the greed of Sean Gallman and Eric Gallman, the U.S. taxpayer was defrauded of over $16 million. The Gallmans used business entities and addresses in different states to create an elaborate scheme to hide their stolen funds.” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “The indictment announced today reinforces the commitment by law enforcement and the Maryland United States Attorney’s Office that individuals who steal from the government will be held accountable.”
The three count indictment alleges that Sean and Eric Gallman established trusts and business entities, including Gallman Charitable Trust and LEA Group Holdings Trust. The defendants used mailboxes at numerous private commercial postal carrier stores in Maryland and North Carolina as the addresses for the Trusts.Acting as the trustee and agent of the Gallman Charitable Trust, on or about January 4, 2013 Sean Gallman allegedly mailed to the IRS a fraudulent 2012 tax return in the name of the trust, requesting a refund of $8,218,930. Also around this time and as the trustee and agent of LEA Group Holdings Trust, Eric Gallman allegedly mailed to the IRS a fraudulent 2012 tax return in the name of the trust, requesting a refund of $8,293,562.
The indictment alleges that the defendants knew that the Trusts were not entitled to the tax refunds. After receiving refund checks in these amounts, on February 15 and March 11, 2013, the defendants deposited the two refunds in bank accounts they controlled.
The indictment seeks forfeiture in the total amount of $16,512,492, the amount of the two refunds.
The defendants face a maximum sentence of 20 years in prison for conspiring to commit mail fraud; 10 years in prison for conspiring to defraud the government; and five years in prison for false claims against the government. An initial appearance is expected to be scheduled for both defendants in the next two weeks in U.S. District Court in Greenbelt.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the IRS-Criminal Investigation for its work in the investigation and thanked Assistant United States Attorney Thomas P. Windom, who is prosecuting the case.
Topeka Man Pleads Guilty to Aiding and Abetting RobberyRead the Press Release
TOPEKA, KAN. - A Topeka man pleaded guilty Monday to giving another man a rifle and serving as a lookout while the gun was used in a liquor store robbery U.S. Attorney Barry Grissom said.
Aaron Roy Bundy, 27, Topeka, Kan., pleaded guilty to one count of aiding and abetting robbery. In his plea, he admitted that he gave a man who was staying in his apartment a .22 caliber rifle. On May 12, 2014, Bundy served as a lookout while the other man used the rifle to rob Patty’s Retail Liquor at 3705 S.W. Plaza Drive in Topeka.
Co-defendant Weston Brett Canfield is awaiting trial.
Bundy is set for sentencing Sept. 29. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000.
Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.