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Monday 16 June 2014
Third Former State Corrections Official Charged in Inmate BeatingRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today that a third former state corrections official has been charged with civil rights violations related to the beating of an inmate at the Louisiana State Penitentiary in Angola, Louisiana.
Mark Sharp, age 33, of Amite, Louisiana, has been charged in a Bill of Information with deprivation of rights under color of law, in violation of Title 18, United States Code, Section 242, and making false statement, in violation of Title 18, United States Code, Section 1001. If convicted, Sharp faces up to 15 years imprisonment, a fine up to $500,000, and up to 3 years of supervised release following a term of imprisonment. His initial appearance and arraignment will be held on a date to be determined.
Sharp is charged based on his alleged conduct while employed as a correctional officer at the Louisiana State Penitentiary in Angola. The Bill of Information alleges that Sharp willfully deprived an inmate of a right, secured, and protected by the United States Constitution, to be free from cruel and unusual punishment. On January 24, 2010, Sharp allegedly struck an inmate with an asp baton, while the inmate was handcuffed with his hands behind his back, resulting in bodily injury to the inmate. Sharp then allegedly lied to the Federal Bureau of Investigation during its investigation of the beating.
Two other former state corrections officials have been charged and convicted in connection with the inmate beating. Kevin Groom and Jason Giror have both been charged and pled guilty to falsifying records in a federal investigation and making false statements to the FBI. They await sentencing.
This matter was investigated by the FBI and is being prosecuted by Assistant United States Attorney Robert W. Piedrahita.
NOTE: A Bill of Information is an accusation by the United States. The defendant is presumed innocence unless adjudicated guilty at trial or through a guilty plea.
Tax Preparation Business Owner Convicted of Tax FraudRead the Press Release
HOUSTON – Charles Lee Harrison, the owner of a tax preparation business, has entered a guilty plea to willfully aiding and assisting in the preparation and presentation of a false tax return, announced United States Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of Internal Revenue Service - Criminal Investigation (IRS-CI).
According to the plea agreement filed in the record of the case, Harrison was the owner of Harrison and Harrison, a tax preparation business with offices in Houston and Navasota.
Today, he admitted he placed false items on a client’s income tax return that caused a loss of more than $9,000. However, as part of his plea, Harrison stipulated that the relevant conduct for purposes of sentencing is approximately $396,057, which includes tax loss on other returns he prepared for others as well as his own.
U.S. District Judge Lynn N. Hughes, who accepted the plea today, has set sentencing for Sept. 15, 2014. At that time, Harrison faces up to three years imprisonment and a possible $250,000 fine.
This matter was investigated by IRS-CI and is being prosecuted by Assistant U.S. Attorney Charles J. Escher.
Takoma Park Man Sentenced to 5 Years in Prison for Two Residential Mortgage Fraud SchemesRead the Press Release
Used Other Individuals’ Identities, False Income and Credit Information
to Induce Lenders to Provide Home Mortgage Loans
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Mokorya Cosmas Wambura, age 41, of Takoma Park, Maryland today to five years in prison followed by five years of supervised release for conspiring to commit wire fraud and aggravated identity theft arising from two separate residential mortgage fraud schemes. Chief Judge Chasanow also ordered Wambura to pay restitution of more than $400,000.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Cary A. Rubenstein of the Housing and Urban Development Office of Inspector General - Office of Investigations; Acting Inspector General Michael P. Stephens of the Federal Housing Finance Agency Office of Inspector General; Special Agent in Charge Kathy Michalko of the United States Secret Service – Washington Field Office; John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
"This investigation demonstrated that through the cooperative investigative efforts with our law enforcement partners, those who commit fraud affecting financial institutions of the United States will be brought to justice," said John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General.
According to his plea agreement and court documents, from March 2007 to November 2008, Wambura conspired with real estate agent Tibakweitira and others to unlawfully use the identity of another individual to buy residential property. For example, in June 2008, Wambura used the stolen identity of another person, along with false income statements and credit information, to buy a residence in Hyattsville, Maryland. The conspirators inflated the sales price by creating false documents for repairs and renovations that were never made. After the settlement, the conspirators divided up the cash received for the purported repairs.
During the second fraud scheme from July 2007 to May 2009, co-conspirator Mrisho Mzese sold his residence in Silver Spring, Maryland to Wambura, and attempted to conceal the scheme by using the identity of Wambura’s friend and roommate as the purported buyer. Wambura again made false statements about the buyer’s assets and income. For example, Wambura listed a joint credit union account held by Wambura and his friend as an asset, which Wambura created without his friend’s knowledge. After securing the mortgage and obtaining possession of the residence, Wambura continued to use his friend’s stolen identity to become a Section 8 landlord for federally subsidized funds. Wambura received portions of the monthly rent paid by the tenant. Wambura and Mzese also caused $29,186 in government housing program assistance checks, payable to Wambura’s friend, to be mailed to Wambura.
As a result of the two conspiracies, Wambura caused between $400,000 and $1 million in losses to federally-insured financial institutions.
Edgar Tibakweitira, a/k/a “Edgar Julian,” “Charles Edgar Tibakweitira,” and “Edgar Gaudious Tibakweitira,” age 37, of Severn, Maryland, previously pleaded guilty to the conspiracy and to aggravated identity theft, and has agreed to forfeit a Range Rover vehicle. Tibakweitira is scheduled to be sentenced on November 3, 2014 at 10:00 am.
Mrisho Mavuruma Mzese, age 39, of Clarksburg, Maryland, was convicted at trial on May 1, 2014 on 11 counts including conspiracy to commit wire and mail fraud, wire fraud, mail fraud and aggravated identity theft, based on his participation in the second fraud scheme in which he engaged with Wambura. Mzese's sentencing is scheduled for August 7, 2014 at 2:00 pm.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao/md/priorities_financialfraud.html.
Today's announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.United States Attorney Rod J. Rosenstein praised HUD-OIG, FHFA-OIG, Treasury OIG, U.S. Secret Service and HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley and Special Assistant U.S. Attorney Kevin DiGregory, Investigative Counsel for the Federal Housing Finance Agency Inspector General, who prosecuted the case.
Stamford Man Admits Role in Mortgage Fraud SchemeRead the Press Release
Follow @USAO_CT
The United States Attorney for the District of Connecticut announced that ASM AFSARY, 41, of Stamford, waived his right to indictment and pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to conspiring to defraud financial institutions through an extensive mortgage fraud scheme that involved dozens of properties in Fairfield County.
According to court documents and statements made in court, between 2005 and 2013, AFSARY participated in a mortgage fraud conspiracy that involved the purchase of numerous single and multi-family properties, primarily in Bridgeport and Stamford. During the scheme, AFSARY and his co-conspirators provided materially false information to mortgage lenders. The fraudulent information included false verifications of mortgage applicants’ income, false verifications of down payments for real estate transactions and false HUD-1 Forms.
In pleading guilty, AFSARY admitted that he recruited and directed the actions of several “straw buyers,” or individuals who fraudulently applied for and obtained mortgage loans but did not have an actual financial investment or stake in the mortgage loan transactions. In fact, AFSARY was the intended owner of the property, managed the property and collected all of the rents from the property.
Through this scheme, lenders suffered losses of more than $7 million. Many of the properties involved in this mortgage fraud scheme ended up in foreclosure, or in short sale transactions.
AFSARY pleaded guilty to one count of conspiracy to commit wire fraud and bank fraud, which carries a maximum term of imprisonment of 30 years. Judge Hall scheduled sentencing for October 1, 2014.
AFSARY is the fourth individual involved in this scheme to plead guilty.
This ongoing investigation is being conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Ann M. Nevins and Special Assistant U.S. Attorney John McReynolds.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]St. Charles Parish Tax Preparer Pleads Guilty on Morning of TrialRead the Press Release
A St. Charles Parish tax preparer pled guilty this morning to conspiracy to defraud the United States and, specifically, the Internal Revenue Service, announced U.S. Attorney Kenneth Allen Polite, Jr. Her daughter, LASHANDA RUTH VINNETT, age 29, also of Destrehan, Louisiana, pled guilty on Friday, June 13, 2014, to the same charge.
According to court documents, CATHY ROSS VINNETT, 46, of Destrehan, Louisiana, opened the D&C Tax Service in 2006. In 2008, CATHY VINNETT and LASHANDA VINNETT (“the VINNETTS”) created River Parish Tax Professionals (“River Parish”). River Parish was established by the VINNETTS for the purpose of filing fraudulent tax returns. The VINNETTS, through River Parish, filed approximately 310 tax returns which falsely claimed the First-Time Homebuyer Credit, the Earned Income Tax Credit, as well as the listing of false dependents resulting in approximately $1.845 million in fraudulent tax refunds.
CATHY VINNETT and LASHANDA VINNETT utilized recruiters to locate potential clients. These recruiters advised potential clients that the federal Government was giving out stimulus money and instructed the individuals to visit River Parish in order to obtain their money. The VINNETTS would interview clients at their office in LaPlace, Louisiana to obtain their personal information including their name, address and Social Security Number. The VINNETTS used that personal information to file false tax returns. The clients had no knowledge that the VINNETTS were filing false returns in their names.
The VINNETTS specifically attempted to conceal and shield CATHY’s identity with the IRS, knowing that the IRS had previously suspended CATHY’S Electronic Filing Identification Number as a result of another fraudulent tax scheme involving D&C Tax Service. Additionally, in May 2009, CATHY VINNETT knowingly made material false statements to IRS federal agents when she claimed she had no knowledge about false tax returns being prepared at River Parish, she did not own a tax business, and that her brother was the owner of River Parish.
United States District Court Judge Ivan L.R. Lemelle will sentence CATHY VINNETT on October 1, 2014 and LASHANDA VINNETT on September 17, 2014. The VINNETTS face a maximum penalty of ten years imprisonment, followed by up to three years of supervised release, restitution, and a $250,000 fine.
Gabriel Grchan, Special Agent in Charge - IRS Criminal Investigation, stated that: “The guilty pleas entered by Cathy and Lashanda Vinnett represent a great victory for all U.S. taxpayers. A tax stimulus, such as the First Time Homebuyer’s Credit, is meant to strengthen the country’s economy. When these types of programs are exploited by fraud, it cannot be tolerated. IRS - CI will continue working to bring to justice those individuals who scheme and conspire to benefit themselves at the expense of other citizens and the government."
This case is being investigated by special agents from the Internal Revenue Service-Criminal Investigation Division. The prosecution of this case is being handled by Fraud Unit Chief and Assistant U. S. Attorney Brian M. Klebba and Assistant U.S. Attorney Matthew Payne.
(Factual Basis - Cathy Vinnett )
(Factual Basis - Lashanda Vinnett )
Spalding County Battalion Chief and Firefighter Indicted for Tipping Off Drug DealersRead the Press Release
ATLANTA - Dwayne Tyrone Coggins and Michael Owens have been arraigned on federal charges for tipping off drug traffickers to police activity in the Griffin area. Coggins and Owens were indicted by a federal grand jury on June 11, 2014.
“When called upon to assist the police, Coggins and Owens’ first instinct was to call the drug dealers to warn them," said United States Attorney Sally Quillian Yates. “Now, they face federal charges for protecting drug dealers.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Many of today’s criminal investigations are complex in nature and often involve other jurisdictions and the assistance of other agencies. While the FBI values the partnerships of those agencies that provide us with so much assistance, the criminal conduct alleged in the federal indictment of these two Spalding County Firefighters cannot be tolerated.”
According to United States Attorney Yates, the charges, and other information presented in court: Coggins has been employed by the Spalding County Fire Department since 1990 and, most recently, served as a Battalion Chief. Owens is also employed by the Spalding County Fire Department as a firefighter.
Police regularly gathered at the Spalding County Fire Department before scheduled police activity such as serving arrest warrants. In April and May 2014, both Coggins and Owens warned drug dealers about law enforcement activity in the area before it occurred. They were aware of the police activity because they had been informed by law enforcement about the investigation or had seen officers gathering near the fire station before serving warrants. Police became aware that Coggins and Owens were tipping off drug traffickers to law enforcement activities during the course of an on-going drug investigation.
Dwayne Tyrone Coggins, 47, and Michael Owens, 37, of Griffin, Ga., were arraigned today before Magistrate Judge Alan J. Baverman.
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 Federal Bureau of Investigation.
Assistant United States Attorney Kurt R. Erskine 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 Newnan Division is http://www.justice.gov/usao/gan/.
Schuylkill County Woman Sentenced for Role in False Income Tax Return SchemeRead the Press Release
JOHNSTOWN, Pa. - A resident of Mahanoy City, Pa., has been sentenced in federal court to five years probation, the first 14 months of which must be served by conditions of home confinement, and pay restitution to the Internal Revenue Service in the amount of $128,105 on her conviction of conspiracy to defraud the government, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Kimberly Lynn Snyder, 38.
According to information presented to the court, from April 2008 to Oct. 2010 Snyder conspired to file 72 false and fictitious income tax returns claiming tax refunds totaling $210,581.
Assistant United States Attorney John J. Valkovci, Jr. prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service-Criminal Investigation for the investigation leading to the successful prosecution of Snyder.
Rochester Man Pleads Guilty to Obstructing the MailsRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Rodney Dugan, 42, of, Rochester, N.Y., pleaded guilty before U.S. Magistrate Judge Marian W. Payson, to obstructing the mails. The charge carries a maximum sentence six months in prison, a fine of $5,000, or both.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Dugan worked as a driver for a carrier contracted by the United States Postal Service. On April 11, 2014, in a sting operation conducted by Special Agents of the U.S. Postal Service, Office of Inspector General, the defendant was caught unlawfully removing a letter containing a Target gift card from the mail he was transporting that day.
The plea is the culmination of an investigation by Special Agents with the U.S. Postal Service, Office of Inspector General, under the direction of Special Agent in Charge Monica Weyler, Eastern Area Field Office, Philadelphia, PA.
Sentencing is scheduled for August 6, 2014 at 12:00 p.m. before Judge Payson.Mexican Restaurant Owners Plead Guilty to Hiring Undocumented Aliens and False StatementsRead the Press Release
Contact: Julia M. Lipez
James W. Chapman, Jr.
Assistant United States Attorneys
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
brothers, Guillermo Fuentes, 38, of Westbrook, Maine and Hector Fuentes, 40, of Waterville,
Maine, pleaded guilty today in U.S. District Court to knowingly hiring 10 or more
undocumented aliens in a 12-month period and making false statements to federal agents.Court records reveal that the employment charge relates to hiring practices at the Fajita
Grill restaurant in Westbrook. The false statement charge arises out of post-arrest statements the
defendants made to law enforcement officers in September 2011 regarding the hiring practices at
the Fajita Grill and at the Cancun Mexican Restaurant in Waterville, in which they falsely stated,
among other things, that federally required documentation regarding the immigration status of
employees had been properly completed.The defendants face up to five years in prison, a fine of $250,000, or both. They will be
sentenced after the completion of a pre-sentence investigation report by the U.S. Probation
Office.The investigation was conducted by U.S. Immigration and Customs Enforcement’s
Homeland Security Investigations and the United States Department of Labor, Office of
Inspector General.Mexican National and Las Cruces Resident Plead Guilty to Trafficking Heroin in Dona Ana CountyRead the Press Release
ALBUQUERQUE – Jovita Belmonte-Gonzalez, 43, of Ciudad Juarez, Chihuahua, Mexico, entered guilty pleas today in federal court in Las Cruces, N.M., to heroin trafficking charges in four separate cases. One of her confederate, Nathan Andrew Maestas, 31, of Las Cruces, also pleaded guilty to heroin trafficking and firearms charges in one of the four cases.
Belmonte-Gonzalez, Maestas and 14 others were charged with heroin trafficking offenses in four indictments filed in Nov. 2013, as a result of a multi-agency investigation led by the FBI that targeted Belmonte-Gonzalez’s heroin trafficking activities in Doña Ana County, N.M. Belmonte-Gonzales was charged as the lead defendant in all four indictments which alleged that she supplied heroin to four drug trafficking organizations that were distributing heroin in Doña Ana County.
In entering her guilty pleas in the four cases, Belmonte Gonzalez admitted conducting frequent heroin transactions, including transactions involving hundreds of grams of heroin, with her co-defendants between June 2013 and Oct. 2013. According to the indictments, Belmonte-Gonzalez typically negotiated heroin sales by telephone from Juarez. Belmonte-Gonzalez’s co-defendants then traveled from Doña Ana County to Juarez where they purchased the heroin from her and returned to Doña Ana County where they distributed the drugs.At sentencing, Belmonte-Gonzales faces a mandatory minimum of ten years in prison and a maximum of life in prison. She has been in custody since her arrest on Nov. 15, 2013, and remains detained pending her sentencing hearing, which has yet to be scheduled. Belmonte-Gonzalez will be deported after she completes her prison sentence.
Maestas pled guilty to conspiracy to distribute heroin and to being a felon in possession of a firearm. Maestas admitted conspiring with Belmonte-Gonzalez and others to distribute heroin in Doña Ana County between June 4, 2013 and Oct. 27, 2013. He acknowledged that he negotiated three heroin transactions, involving an aggregate of 128 grams of heroin, from Belmonte-Gonzalez during this period and arranged to smuggle the heroin from Juarez into the United States. Maestas also admitted unlawfully possessing a firearm and ammunition on June 4, 2013. At the time, he was prohibited from possessing firearms or ammunition because he previously had been convicted of burglary and larceny.
Under the terms of his plea agreement, Maestas will be sentenced to 72 months in federal prison followed by a term of supervised release to be determined by the court. Maestas has been in federal custody since his arrest on Nov. 15, 2013. He remains detained pending his sentencing hearing, which has yet to be scheduled.
The remaining 14 defendants have entered not guilty pleas to the charges against them. They are presumed innocent unless found guilty in a court of law.
These cases are being prosecuted by Assistant U.S. Attorney E. Garreth Winstead, III, of the U.S. Attorney’s Las Cruces Branch Office. The investigation leading to the charges in the four cases was led by the Las Cruces office of the FBI in collaboration with U.S. Customs and Border Protection, the U.S. Border Patrol, the Las Cruces office of the DEA, the U.S. Marshals Service, the Las Cruces Police Department and the Doña Ana County Sheriff’s Office.
The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
McCandless Man Received Child Pornography, Faces at Least 5 Years in PrisonRead the Press Release
PITTSBURGH – An Allegheny County man pleaded guilty in federal court to a charge of receipt of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Mark Janosko, 48, of Pittsburgh, Pennsylvania pleaded guilty to one count before United States District Judge Mark R. Hornak.
According to information presented to the court, on or about July 3, 2013, Janosko received images containing material depicting the sexual exploitation of minors.
Judge Hornak scheduled sentencing for Oct. 9, 2014 at 9:30 a.m. The law provides for a mandatory minimum sentence of 5 years in prison and a maximum of 20 years imprisonment, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police, and the Indiana County and Allegheny County District Attorney’s Office and the McCandless Police Department conducted the investigation that led to the prosecution of Janosko.
This case was brought as part of the 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 marshal federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For information about Project Safe Childhood, please visit www.justice.gov/psc .
Maryland Man Sentenced to 28 Months in Prison for Bias-Related Assault in Northeast WashingtonDefendant Struck Transgender Woman with A GunRead the Press Release
WASHINGTON – Michael Phillips, 36, of Fairmount Heights, Md., was sentenced today to 28 months in prison on charges stemming from an attack earlier this year against a transgender woman at a store in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Phillips pled guilty in March 2014, in the Superior Court of the District of Columbia, to a charge of assault with a dangerous weapon. The charge included a bias-related (hate) crime enhancement. Phillips was sentenced by the Honorable Robert I. Richter. Upon completion of his prison term, Phillips will be placed on three years of supervised release.
According to the government’s evidence, at approximately 2:40 a.m. on Jan. 27, 2014, Phillips, the victim, and the victim’s friends were customers at a convenience store in the 900 block of Eastern Avenue NE. Phillips and the victim did not know each other.
Upon seeing the victim and her friends walk into the store, Phillips stated words to the effect of, “Let me see who’s the real bitch here.” He then pointed at the victim and made a derogatory remark about her sexuality. When the victim told Phillips to leave her alone, Phillips stated words to the effect of, “Well you wasn’t born no female.”
Words were exchanged inside the store, and Phillips approached the victim, pulled a handgun from his pocket and struck her in the face with the weapon multiple times. At his plea hearing, Phillips admitted assaulting the victim with the handgun because of his prejudice based on her perceived sexual orientation and gender identity.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Richard Cheatham and Assistant U.S. Attorney Brandon S. Long, who prosecuted the matter.
14-137Manhattan U.S. Attorney Announces Arrest of Information Technology Specialist at the Northport Veterans Affairs Medical Center for Illegally Accepting over $40,000 in Benefits from A Telecommunications FirmRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, and Jeffrey Hughes, the Special Agent-in-Charge of the Northeast Field Office of the Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division (“VA-OIG”), announced today the unsealing of a Complaint charging KENNETH CZUMAK, an Information Technology Specialist with the Northport Veterans Affairs Medical Center (the “VAMC Northport”), with accepting more than $40,000 in benefits, including meals, golf outings, and car services, from a telecommunications firm that did business with the VAMC Northport. CZUMAK surrendered to the U.S. Marshals Service this morning. He was presented today in Manhattan federal court before U.S. Magistrate Judge Ronald L. Ellis.
According to the Complaint unsealed today in Manhattan federal court:
The VAMC Northport is a medical center that provides healthcare services to veterans in Long Island and surrounding areas. Throughout the relevant time period, a telecommunications firm had a subcontract for approximately $6 million to provide voice and data infrastructure and related services to the VAMC Northport (the “Telecommunications Firm”). During this same time period, CZUMAK served as an Information Technology Specialist at the VAMC Northport, and was the primary point of contact for the Telecommunications Firm at the VAMC Northport.
As alleged in the Complaint, between January 2008 and June 2013, CZUMAK accepted a total of more than $40,000 in goods and services paid for by the Telecommunications Firm. Among other things, CZUMAK received meals, golf outings, hotel rooms, car services, and other benefits. According to an account executive at the Telecommunications Firm (“Account Executive-1”), Account Executive-1 spent approximately 20% of an annual $35,000 expense budget on CZUMAK, which was more than Account Executive-1 spent on any other customer of the Telecommunications Firm.
During the same time period, CZUMAK served as a reference for other potential clients of the Telecommunications Firm. For example, in approximately 2011, another account executive from the Telecommunications Firm (“Account Executive-2”) was attempting to win a new client, and referred that potential client to CZUMAK. Subsequently, CZUMAK stated to Account Executive-1 that CZUMAK had heard that the Telecommunications Firm had won that contract with Account Executive-2’s new client, and thought that he, CZUMAK, now had a nice dinner coming his way
In an interview with law enforcement agents in March of this year, CZUMAK acknowledged that he was aware from training he had received from VAMC Northport that, as a government employee, he could not accept gifts worth more than $15 from an outside source.
CZUMAK is charged with one count of illegal salary supplementation and faces a statutory maximum sentence of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the work of the VA-OIG and the criminal investigators of the U.S. Attorney’s Office in the investigation of this case.
This prosecution is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorney Brian A. Jacobs is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Kenneth Czumak complaint
Man Sentenced to 14 Years in Federal Prison for Laundering Monetary Proceeds from Sex TraffickingRead the Press Release
DALLAS — At a hearing concluding late Friday afternoon, Chief U.S. District Judge Sidney A. Fitzwater sentenced Duc Luu, a naturalized U.S. citizen from Vietnam, to 14 years in federal prison for laundering monetary proceeds from sex trafficking, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
During the hearing, Chief Judge Fitzwater noted the horrific nature of the crime and added that he was incapable of capturing its heinousness in words. Chief Judge Fitzwater also ordered Luu to pay $16,766 in restitution to the victim.
“I commend the dedication and hard work of law enforcement, not only in their persistence in investigating this case, but in their efforts to locate and rescue victims who may be unable to seek help themselves,” said U.S. Attorney Saldaña. “This district remains vigilant in our efforts to vigorously and aggressively prosecute human traffickers and hold them accountable for their crimes.”
Luu, 50, was indicted in August 2011, while he was living in Vietnam, on one count of sex trafficking by force, fraud or coercion and two counts of money laundering. According to documents filed in the case, Luu travelled to Vietnam on his U.S. passport, but shortly after his indictment, the U.S. initiated efforts to arrest and extradite him. Ultimately, the U.S. Department of State revoked Luu’s passport and Vietnam expelled him. Luu was then arrested and returned to the Northern District of Texas, where he made his initial appearance in federal court on the charges in September 2012.
Luu pleaded guilty in August 2013 to two counts of money laundering. According to the stipulated facts in the factual resume, in October 2008, Luu caused $12,000 to be wire-transferred from a bank in Texas to a bank in Vietnam, knowing that the funds had been derived from sex trafficking. Again, in July 2009, Luu caused $26,000 to be wire-transferred from a bank in Texas to the same bank in Vietnam, knowing that these funds also were derived from sex trafficking. Luu was the sender and beneficiary of both wire transfers.
The victim testified at the sentencing hearing regarding the depraved acts of the defendant in recruiting, grooming, manipulating, exploiting and subjecting her to a fraud of the most serious nature.
“Individuals such as Mr. Luu, who use money laundering to conceal the true source of their money run the risk of federal prosecution and imprisonment,” said R. Damon Rowe, Special Agent in
Charge of the IRS-CI Dallas Field Office. “IRS Criminal Investigation is committed to unraveling money laundering schemes and assisting our law enforcement partners to ensure that the type of criminal conduct engaged in by Mr. Luu is not ignored. Mr. Luu’s sentence is a reminder to criminals that money laundering schemes will be vigorously investigated and prosecuted.”“Even a harsh prison sentence seems inconsequential compared to the horrors visited on the victim in this case,” said Special Agent in Charge David Marwell of HSI Dallas. “Nonetheless this is a stern warning to criminals who flee justice that Homeland Security Investigations will continue to use our unique authorities and international partnerships to bring criminals to justice, no matter how far they run or in what country they hide.”
IRS Criminal Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Department of State and the Garland Police Department investigated. Assistant U.S. Attorney Errin Martin prosecuted.
Leader of Armenian Alien Smuggling Ring Arraigned on Federal ChargesRead the Press Release
The alleged leader of an Armenian alien smuggling ring was arraigned on an indictment unsealed today in federal court. Grigor Chatlayan, 44, is charged with coordinating and directing an international alien smuggling organization that brought undocumented Armenian nationals illegally into the United States in exchange for thousands of dollars. Chatalyan, of North Hollywood, California, was arrested on Saturday as he applied for entry into the United States from Mexico at the San Ysidro, California Port of Entry. He was arraigned in federal court this morning before U.S. Magistrate Judge David H. Bartick.
The indictment makes it clear that Chatalyan led an international smuggling enterprise whereby Armenian nationals were smuggled from Armenia to the United States by way of Moscow, Russia and Cancun, Mexico. In exchange, Armenian nationals were made to pay up to $18,000 each to be brought into the United States. Chatalyan’s smuggling group arranged for the Armenian nationals to fly into Moscow, Russia, where they were given fraudulent Russian passport to travel to Cancun, Mexico. Once in Mexico, the smuggling organization would transport the Armenian nationals to Tijuana, Mexico. Chatalyan and his co-conspirators would then procure valid U.S. legal permanent resident or passport cards from within the United States and attempt to use those documents to pass imposter Armenian nationals through the San Ysidro, California Port of Entry.
According to the indictment, Chatalyan coordinated these activities with several co-conspirators, including two others charged in the indictment with Chatalyan: Varduhi Avagyan, 42, and Meri Avetsiyan, 40, both of Glendale, California. Avagyan and Avetisyan were arrested on November, 1, 2013 attempting to smuggle two Armenian nationals into the country.
All three are charged with conspiracy and bringing in illegal aliens for financial gain. In addition, Chatalyan is charged with aiding and abetting aggravated identity theft. Chatalyan and his co-conspirators face a maximum penalty of up to 15 years’ imprisonment and a $250,000 fine. If convicted on all charges, Chatalyan could be sentenced to a mandatory minimum of seven years in custody.
DEFENDANT Grigor Chatalyan Age: 44 North Hollywood, California Varduhi Avagyan Age: 42 Glendale, California Meri Avetsiyan Age: 40 Glendale, California CHARGESConspiracy, 18 U.S.C. § 371
Bringing in Illegal Aliens for Financial Gain, 8 U.S.C. §1324(a)(2)(B)(ii)
Aiding and Abetting Aggravated Identity Theft, 18 U.S.C. § 1028A and 18 U.S.C. § 2
INVESTIGATING AGENCYU.S. Department of Homeland Security - Homeland Security Investigations
*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Kirtland, N.M., Man Pleads Guilty to Federal Statutory Rape ChargeRead the Press Release
ALBUQUERQUE – Justin Chee, 24, a member of the Navajo Nation who resides in Kirtland, N.M., pleaded guilty this morning to an indictment charging him with statutory rape.
Chee was arrested in March 2014, based on a criminal complaint alleging that he engaged in a sexual act with a Jicarilla Apache child between the age of 12 and 16 years. Chee subsequently was indicted and charged with statutory rape. According to the indictment, Chee committed the offense in Aug. 2012, in a location within the Navajo Indian Reservation.
In his plea agreement, Chee admitted that on Aug. 30, 2012, when he was 22 years of age, he knowingly engaged in a sexual act with the 14-year-old victim.
Chee has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Chee faces a maximum statutory penalty of 15 years in federal prison. Chee also will be required to register as a sex offender.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety with assistance from the Jicarilla Apache Tribal Police Department and the San Juan Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Jody Farnham Imprisoned for Embezzlement from UvmRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Jody Farnham, 55, of Burlington, was sentenced today in United States District Court in Rutland to 13 months of imprisonment following her guilty plea to a charge of federal program embezzlement. Chief Judge Christina Reiss ordered that Farnham serve a three-year term of supervised release upon completion of her prison term and pay restitution in the amount of $200,000. The court directed that Farnham report to the Bureau of Prisons on July 29 to begin serving her sentence.
According to the information to which Farnham pled guilty last January, Farnham had been employed for a number of years by the University of Vermont, College of Agriculture and Life Sciences. Farnham was an office support specialist for the Vermont Institute for Artisan Cheese, which provided educational, research and technical consulting services to artisan cheese makers. VIAC offered courses and workshops in cheesemaking and enrollees paid tuition to UVM to attend the programs. According to the information, Farnham began embezzling money from UVM in about 2006 and, before the thefts were discovered in late 2012, she stole not less than $200,000. Farnham embezzled much of the money by altering checks given to her by VIAC enrollees. She changed the checks, which were made out to VIAC, to make her a co-payee. She then deposited the forged checks into her personal bank account. Farnham also stole some cash tuition payments, and misused UVM credit cards to make personal purchases. During the time period of the embezzlement, UVM received substantial amounts of federal funding.
This case was investigated by the University of Vermont Police Department and the Federal Bureau of Investigation.
Farnham is represented by Robert Hemley. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Jeffrey Scott Kendrick, Jr. Sentenced to 114 Months for Armed RobberyRead the Press Release
GREENEVILLE, Tenn. – On June 16, 2014, Jeffrey Scott Kendrick, Jr., 25, of Kingsport, Tenn., was sentenced to serve 114 months in prison by the Honorable J. Ronnie Greer, U.S. District Judge. Upon his release from prison Kendrick will be subject to supervised release under the supervision of the U.S. Probation Office for five years. There is no parole in the federal system.
Kendrick pleaded guilty in February 2014 to a Hobbs Act robbery and possession of a firearm in furtherance of the robbery. Kendrick robbed the Road Runner Market on Lynn Garden Drive in Kingsport, at gunpoint, in November 2012.
Law enforcement agencies participating in the joint investigation included the Kingsport Police Department and Federal Bureau of Investigation. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
Houston Store Owner Convicted of Identity Theft and Multiple Counts of Wire FraudRead the Press Release
HOUSTON – Austyn Enahoro Afenkhena, 53, of Houston, has entered a plea of guilty to eleven counts of wire fraud and four counts of aggravated identity theft, announced United States Attorney Kenneth Magidson.
Beginning in at least January 2008, and continuing through June 2013, Afenkhena obtained credit cards that were created from stolen identities, according to the information presented in court today. He would then run the cards through his store front, Phase 2 Auto Repair on Harwin Drive, in order to obtain cash.
To facilitate the scheme, Afenkhena also created fake merchant accounts under the names of Phase 2 Auto Inc., Phase 2 Automotive, ENA Auto Repair and ENA Automotive, so that he could obtain multiple credit card machines on which to run the fraudulent cards. Afenkhena often created false documentation such as invoices and receipts whenever necessary to further the scheme. He would use these documents to falsely represent to multiple banking institutions that transactions occurred at his store.
Afenkhena fraudulently received at least $350,000 as a result of his scheme.
U.S. District Judge David Hittner, who accepted the plea, has set sentencing for Sept. 11, 2014. At that time he faces up to 30 years in federal prison and a possible $1 million fine for each count of wire fraud. He also faces a mandatory two-year-term for aggravated identity theft, which must be served consecutively to any other sentence imposed.
The investigation was conducted by the U.S. Postal Inspection Service. Assistant U.S. Attorney Julie Searle is prosecuting.
Houston Man Gets Significant Sentence for Humble Bank RobberyRead the Press Release
HOUSTON – A 24-year-old Houston man will be spending the next nine years in federal prison as a result of his convictions related to the April 2013 robbery of Regions Bank in Humble, announced United States Attorney Kenneth Magidson. Justin Devon Hayes entered guilty pleas to aggravated bank robbery and brandishing a firearm during a crime of violence on Dec. 2, 2013, along with Demontray Ward, 22, also of Houston.
Today, U.S. District Judge Vanessa Gilmore handed Hayes a sentence of 24 months for the aggravated bank robbery which be served consecutively to another 84 months for brandishing a firearm. The sentence was enhanced due to the fact there was bodily injury during the course of the robbery. Specifically, evidence presented today indicated that two bank employees had been struck in the back of the head. Hayes will also serve five years of supervised release following completion of his prison term.Ward was sentenced in March 2014 to a total of 189 months in prison.
On April 26, 2013, Hayes, Ward and a third, now deceased man, robbed the Regions Bank at 7044 East FM 1960 in Humble. Ward was armed with a shotgun, while the other two had pistols. All of the weapons were loaded. The defendants demanded money, threatened the tellers and became agitated when they realized the vault was on a 10-minute timer.
A Houston police officer entered the bank, but was disarmed by Ward. Outside, another officer witnessed the three men leave the bank and enter an SUV. He attempted to confront them, but the vehicle drove towards him. Seeing a muzzle of a shotgun pointed at him, the officer fired and the driver was shot and killed. Ward and Hayes were then taken into custody.
Ward will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the FBI Bank Robbery Task Force, which is comprised of personnel from the FBI, Houston Police Department and Harris County Sheriff's Office. Assistant United States Attorney Jennie Basile is prosecuting the case.
Governor Martinez’s Former Campaign Manager Pleads Guilty to Computer Intrusion and False Statement ChargesRead the Press Release
ALBUQUERQUE – Jamie Estrada, 41, of Los Lunas, N.M., pleaded guilty this afternoon to the unlawful interception of electronic communications and false statement charges arising out of the unlawful interception of wire communications intended for others, including New Mexico Governor Susana Martinez and members of her staff.
In announcing Estrada’s guilty plea, U.S. Attorney Damon P. Martinez said, “Each and every one of us has a right and an expectation of privacy in our electronic communications, including our emails, and those who violate the law by diverting, stealing or otherwise misappropriating our private communications should face serious consequences. At a time when so much of our personal, professional and financial information is repeatedly transmitted on a daily basis by email and other wireless devices, the Department of Justice is committed to protecting Americans from those who seek to violate their privacy.”
“The right to privacy has been a cornerstone of our democracy since its founding and remains true today in our high-tech world. All Americans, regardless of the jobs or the positions they hold, deserve to have their emails and other computer transactions protected from criminals who would steal and exploit confidential information for unlawful purposes,” said Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI. “I thank the FBI special agents and professional staff who worked on this case, as well as the U.S. Attorney’s Office for their successful prosecution. While much has changed since our nation was established, one thing has not: Americans rely on their government to protect their rights, and that's a duty the FBI takes very seriously.”
Estrada was charged in a 14-count indictment filed in May 2013. The first 12 counts of the indictment alleged that, between July 2011 and June 2012, Estrada unlawfully intercepted wire communication intended for individuals who had email accounts on an internet domain owned by the Governor’s political organization. The final two counts charged Estrada with making false statements to the FBI in Sept. 2012, in which he denied taking certain actions to unlawfully intercept wire communications as charged in first 12 counts of the indictment. The indictment subsequently was superseded in Oct. 2013 and May 2014 to add two more false statement charges.
According to court filings, in summer 2009, Governor Martinez, who was then the District Attorney in Dona Ana County, N.M., began assembling a political campaign as she prepared to enter the Nov. 2010 gubernatorial race. In July 2009, a political supporter of the Governor registered an internet domain designated as susana2010.com (the Domain) for a two-year period through an online service. The supporter donated the Domain, including its username and password, to the Governor’s political organization. The username and password were required for making administrative changes to the Domain, including posting content to the Domain’s website and creating email accounts associated with the Domain. They also were required to renew the registration for the Domain, which was scheduled to expire on July 18, 2011. As the owner of the Domain, the Governor’s political organization had the exclusive right to renew the registration before it expired and during a 42-day grace period following the expiration date.
During the gubernatorial campaign, the Domain became an important tool for the Governor’s political organization. Members of the campaign staff, including the Governor, maintained email accounts on the Domain which they used to communicate with each other, the Governor’s political supporters, and the media. Estrada, who joined the Governor’s political organization as the campaign manager in July 2009, was provided with the username and password for the Domain. When Estrada left the campaign in Dec. 2009, the Governor requested that he cooperate in efforts to remove his access to and privileges regarding the campaign’s accounts.
After Governor Martinez was inaugurated in Jan. 2011, the Governor, members of her staff and others continued to use the email accounts associated with the Domain. In July 2011, individuals who had email accounts on the Domain began receiving reports that emails sent to those accounts were bouncing back to the senders and soon determined that the emails were not getting delivered because the Domain had expired. Their efforts to re-register the Domain were unsuccessful because they could not locate or recall the Domain’s username and password. In July 2011 and as part of their efforts to locate the username and password, the Governor’s staff asked Estrada to provide this information and he did not respond.
During today’s hearing, Estrada entered guilty pleas to Counts 6 and 16 of the second superseding indictment, charging him with unlawful interception of electronic communications and false statements, respectively. In his plea agreement, Estrada admitted that on July 29, 2011, he logged onto the Domain and altered the customer profile using a fictitious name with a Colorado address. Estrada also admitted renewing the Domain under the fictitious name and paid for the renewal with a pre-paid gift card so that the renewal could not be traced back to him.
According to the plea agreement, Estrada changed the settings for the Domain to direct all incoming email to an email account he controlled so that the emails were routed to him instead of the intended recipients. From July 2011 through June 2012, Estrada intercepted hundreds of email messages intended for recipients at the Domain, including the Governor. The intercepted emails included personal emails, internal political communications and emails from ordinary citizens to the Governor or her staff. In his plea agreement, Estrada admitted sharing the emails he unlawfully intercepted with the Governor’s political opponents to disseminate the emails to news media and other outlets.
Estrada admitted unlawfully intercepting an email dated Jan. 4, 2012, which was entitled “Confidential RGA [Republican Governors’ Association] Update” and was intended for the Governor, as charged in Count 6 of the second superseding indictment. In his plea agreement, he also acknowledged unlawfully intercepting the eleven other emails described in Counts 1 through 5 and 7 through 12 of the indictment.
Estrada also admitted making false statements to FBI agents on Sept. 19, 2012, when they executed a search warrant at his residence. Specifically, Estrada told the FBI agents that he had not paid for the renewal of the Domain using a pre-paid gift card as charged in Count 16 of the second superseding indictment. In his plea agreement, he also acknowledged making the false statements charged in Counts 13, 14 and 15 of the indictment.
Under the terms of the plea agreement, Estrada faces a sentence of zero to a year and a day in federal prison. The remaining components of Estrada’s sentence, including the length and conditions of his supervised release and any fine or restitution, will be determined by the court.
This case was investigated by the Albuquerque Division of the FBI and is being prosecuted by Assistant U.S. Attorneys Fred J. Federici and Jeremy Pena.
Georgia Resident Pleads Guilty in Connection with International Lottery Scheme Based in JamaicaRead the Press Release
A man from Atlanta, Georgia, pleaded guilty today for his role in a Jamaican-based fraudulent lottery scheme.
Assistant Attorney General Stuart F. Delery of the Justice Department’s Civil Division, Inspector in Charge David W. Bosch of the Postal Inspection Service Philadelphia Division and Acting Special Agent in Charge Jonathan Larson of the Internal Revenue Service-Criminal Investigations Newark Field Office made the announcement.
Dominic Smith, 26, a citizen of the United States, pleaded guilty in the Western District of North Carolina to one count of conspiracy to commit wire fraud. Sentencing will be scheduled at a later date.
Smith was charged in connection with a fraudulent lottery scheme based in Jamaica that induced elderly victims in the U.S. to send Smith thousands of dollars to cover purported fees for lottery winnings that victims had not won and never received. Smith acted as a middleman in the U.S., receiving money from victims via wire transfers, bank transfers, and mailings. Smith kept a portion of this victim money for his own benefit, and provided the rest to others participating in the scheme.
“This guilty plea demonstrates the Justice Department’s commitment to prosecute those responsible for fraudulent lottery schemes,” said Assistant Attorney General Delery. “Schemes targeting Americans from other countries often cannot fully succeed without assistance from co-conspirators in the U.S. who are willing to help them rip off people in this country.”
“These lottery scammers prey on older Americans, and convince them to send significant amounts of money based on false promises,” said Postal Inspector in Charge Bosch. “The Postal Inspection Service is committed to investigating and combating these international lottery schemes.”
“These fraudulent lottery schemes result in hundreds of thousands of dollars of victim money flowing through the hands of scammers within and outside of the U.S.,” said Acting Special Agent in Charge Larsen. “The IRS will continue to work with the Department of Justice and our law enforcement partners to stop the flow of illegal proceeds across the U.S. border.”
This prosecution is part of the Department of Justice’s effort working with federal and local law enforcement to combat fraudulent lottery schemes in Jamaica preying on American citizens. According to the U.S. Postal Inspection Service, Americans have lost tens of millions of dollars to fraudulent foreign lotteries.
Smith pleaded guilty to one count of conspiracy to commit wire fraud with enhanced penalties for telemarketing. As part of his guilty plea, Smith acknowledged that, had the case gone to trial, the U.S. would have proved beyond a reasonable doubt that, from December 2010 through at least April 2012, Smith was a member of a conspiracy that targeted victims in the United States by informing them that they had won cash and prizes in a lottery. Victims received a telephone call stating that they had won a sweepstakes or lottery and sometimes a new car. Victims were instructed to send thousands of dollars for “fees” or other expenses via wire transfers, direct bank transfers, and the mail in order to release their purported lottery winnings. Victims sent hundreds of thousands of dollars to Smith in the U.S. Smith acknowledged that the government would have proved that he knew there was no lottery and no winnings were paid, and that he, along with his coconspirators, kept the victims’ money for their own benefit.
Assistant Attorney General Delery commended the investigative efforts of the U.S. Postal Inspection Service and the U.S. Internal Revenue Service. The case is being prosecuted by Assistant Director Jeffrey Steger and Trial Attorney Lauren Fascett of the Civil Division and Assistant U.S. Attorney Mark Odulio of the Western District of North Carolina.Galveston Resident Charged with Stealing Deceased Benefits for More A DecadeRead the Press Release
GALVESTON, Texas – John Stephen Davis, 64, of Galveston, has been charged with theft of nearly $400,000 in federal government benefits from the Social Security Administration (SSA) and the Office of Personnel Management (OPM), announced United States Attorney Kenneth Magidson.
The criminal information was filed in federal court this morning. Davis is expected to make an initial appearance before a U.S. magistrate judge in Galveston later this week.
For more than a decade, Davis allegedly stole the Social Security and retirement benefits of an individual who died in 2003. According to the allegations, Davis had a power of attorney over the individual’s bank account and failed to notify the government of the death in order to continue receiving government benefits.
Davis fraudulently received $385,632.15 as a result of the scheme, according to the criminal information.
If convicted, he faces up to 10 years in federal prison and a possible $250,000 fine.
The investigation leading to the charges was conducted by SSA – Office of Inspector General (OIG) and OPM – OIG. Assistant United States Attorney Julie Redlinger is prosecuting the case.
Former President of Central Kentucky Glass Company Guilty of Fraud in Connection with the Installation of Glass and Windows at Ft. Knox High SchoolRead the Press Release
– Former president pleaded guilty to wire fraud and agreed to 27 month prison sentence
– Charges pending against the companyLOUISVILLE, Ky. – The former president of Central Kentucky Glass Company, headquartered in Lexington, Kentucky, pleaded guilty today, in United States District Court, to a single count of wire fraud, in connection with a multi-million dollar contract at Fort Knox High School, announced David J. Hale, United States Attorney for the Western District of Kentucky. Central Kentucky Glass Company was charged separately in a grand jury indictment, with wire fraud, mail fraud and major fraud against the United States.
According to the plea agreement, Dennis Martin, age 51, of Nicholasville, Kentucky, agreed to pay the Army Corp of Engineers and/or the United States Department of Defense $74,061.88 in restitution, and agreed to serve 27 months in prison in exchange for his admission of guilt. Also, Martin agreed that Barton Marlow Company suffered $558,780.44 in losses, but Barton Marlow Company and Central Kentucky Glass Company (CKG) reached a civil settlement for losses due to Martin’s conduct. The amount paid shall be joint and several with restitution owed by CKG.
According to court records, CKG Company was a subcontractor hired by the prime contractor, Barton Malow Company, as part of a multi-million dollar Army Corps of Engineers project which included the installation of glass and windows at Fort Knox High School, located in Hardin County, Kentucky. CKG was required to provide certifications that its glass and windows were tested and met contract requirements, including anti-terrorism standards.
Martin admitted in court today, that he forged certifications from two testing companies, Bowser-Morner, Inc., and National Certified Testing Laboratories, which falsely reflected that CKG’s glass and windows had been tested and met contract requirements. On October 22, 2008, the forged certifications were faxed from CKG’s office in Kentucky to Barton Malow’s office in Ohio. In fact, CKG’s glass and windows had not been tested per the specifications of the contract, and subsequent tests conducted on behalf of the Army Corp. of Engineers indicated that the glass and windows CKG installed at Fort Knox High School did not meet antiterrorism standards.
If convicted, at trial, the company faces a maximum fine of $6,000,000, and a three year period of supervised release. Martin faced no more than 20 years in prison, a fine of $250,000 and a three year period of supervised release.
Sentencing is scheduled before Senior District Judge Thomas B. Russell, on September 16, 2014, in Louisville.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Department of Defense Office of Inspector General.
Former Executive Director of Mississippi Department of Marine Resources Sentenced to 60 Months in Federal PrisonRead the Press Release
Hattiesburg, Miss - William Walker, 69, of Ocean Springs, was sentenced to 60 months in federal prison followed by three years of supervised release for conspiracy to commit federal program fraud, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen. He was also ordered to pay restitution in the amount of $572,689.14 and a $125,000 fine.
Walker pled guilty on March 10, 2014, to conspiring with his son, Scott Walker, to divert federal grant monies in a scheme that resulted in the federal grant monies being used to unlawfully purchase Scott Walker’s personal property in Ocean Springs, Mississippi.
This case was investigated by the Federal Bureau of Investigation with assistance from the Mississippi State Auditor’s Office. Criminal Division Chief John Dowdy, Assistant U.S. Attorney Jerry Rushing and Assistant U.S. Attorney Jay Golden prosecuted the case.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
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Former D’iberville City Manager Sentenced to Prison for Federal Program FraudRead the Press Release
Hattiesburg, Miss - Michael Janus, 47, of Biloxi, was sentenced to 21 months in federal prison followed by three years of supervised release for theft concerning programs receiving federal funds, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen. Janus was also ordered to pay restitution in the amount of $180,000.
Janus pled guilty in February, admitting that, while serving as City Manager for the City of D’Iberville, he fraudulently obtained a $180,000 “finder’s fee” in connection with a $3 million grant from the Mississippi Department of Environmental Quality to the City of D’Iberville.
This case was investigated by the Federal Bureau of Investigation with assistance from the Mississippi State Auditor’s Office. Criminal Division Chief John Dowdy, Assistant U.S. Attorney Jerry Rushing and Assistant U.S. Attorney Jay Golden prosecuted the case.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Firearm Conviction, Arrest RecordSend Wichita Man to Federal Prison for 10 YearsRead the Press Release
WICHITA, KAN. - A federal judge in Wichita cited a defendant’s long criminal record in sentencing him Monday to 10 years in prison on a firearm violation, U.S. Attorney Barry Grissom said.
Thomas Lee Wohlford, 32, Wichita, Kan., pleaded guilty to one count of unlawful possession of a firearm following felony convictions.
U.S. District Court Judge Monti L. Belot said in court records that Wohlford “has been involved in the criminal justice system on a more or less continuous basis since age 15,” and “has no respect for the law.”
Grissom commended the Wichita Police Department and Assistant U.S. Attorney Matt Treaster for their work on the case.
In his plea, Wohlford admitted he was arrested Feb. 11, 2014, at a Quick Trip at 1610 E. Lincoln. Police were called to the scene by a man whose car had been stolen. The man told police he had spotted Wohlford putting gas in the stolen vehicle. Police arrested Wohlford and seized a .22 caliber handgun from the car.Final Three Defendants Sentenced in Wide-Ranging Identity Theft SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, announce that Kawana Brown, 35, of West Palm Beach, Elton Baker, 29, and Eltonya Wiley, 40, both of Center Hill, were sentenced before Judge Kenneth A. Marra for their participation in a wide-ranging identity theft scheme. Brown was sentenced to 102 months in prison, to be followed by three years of supervised release. Baker was sentenced to 65 months in prison, to be followed by three years of supervised release. Wiley was sentenced to 42 months in prison, to be followed by three years of supervised release. Brown, Baker and Wiley were also ordered to pay restitution in the amount of $122,075.21.
Each of the defendants previously pled guilty to one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and three counts of wire fraud, in violation of Title 18, United States Code, Section 1343. Brown also pled guilty to two counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A, and Baker and Wiley each pled guilty to one count of aggravated identity theft.
Ringleader and co-conspirator Jennifer Robinson, 36, of West Palm Beach, was sentenced on May 30, 2014, to 121 months in prison, to be followed by three years of supervised release. A restitution hearing is scheduled for July 25, 2014 at 11:00 a.m. before U.S. District Judge Kenneth A. Marra in West Palm Beach. Robinson previously pled guilty to all counts in a superseding indictment, which included one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, twelve counts of wire fraud, in violation of Title 18, United States Code, Section 1343, eleven counts of stealing government monies, in violation of Title 18, United States Code, Section 641, twelve counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A, and one count of unauthorized access device fraud, in violation of Title 18, United States Code, Section 1029(a)(2).
The scheme involved, in part, stealing the identities of patients at a medical facility in central Florida. Those identities were then used to file fraudulent federal income tax returns in the patients’ names seeking fraudulent refunds, and obtaining fraudulent credit cards which were then used to make fraudulent purchases.
Co-defendants Antoinette Simmons, 40, of Ocoee, and Josh Brown, 25, of Riverdale, Georgia, were sentenced to probation for their roles in the thefts.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Palm Beach County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Stephen Carlton.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Federal Prisoner Admits Running Bank Fraud Scheme While in Hartford Halfway House, and Then EscapingRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DONALD GLENN, 42, formerly of Hartford, pleaded guilty today before U.S. Magistrate Judge Thomas P. Smith in Hartford to one count of bank fraud and one count of escape from the custody of the Attorney General.
According to court documents and statements made in court, in December 2009, GLENN was sentenced in Hartford federal court to 78 months of imprisonment for running an extensive fraudulent check cashing scheme that involved more than 200 counterfeit business checks and 75 different bank branches in Connecticut. Through this scheme, GLENN and his associates defrauded banks of more than $155,000.
On September 28, 2012, the Bureau of Prisons transferred GLENN to a halfway house in Hartford where he was to serve the final six months of his sentence.
In November 2012, while he was in federal custody in the Hartford halfway house, GLENN began to engage in another bank fraud scheme. In December 2012, GLENN gave an individual a counterfeit check from a Connecticut business in the amount of $4,809.02, and gave a second individual a counterfeit check from the same business in the amount of $4,743.80. At GLENN’s direction, the individuals deposited the checks into bank accounts and then withdrew a portion of the funds.
On March 27, 2013, GLENN left the halfway house without permission and did not return.
On April 2, 2013, GLENN deposited a counterfeit business check in the amount of $7,321.60 into a bank account he controlled in Connecticut and then withdrew a portion of the funds.
On August 2, 2013, GLENN was arrested in Florida on state charges. He has been detained since his arrest.
GLENN is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on September 3, 2014, at which time he faces a maximum term of imprisonment of 35 years.GLENN’s criminal history also includes a 1997 federal conviction for bank fraud, for which he received a 41-month prison term, and at least 15 state convictions.
This matter was investigated by the Connecticut Financial Crimes Task Force and the U.S. Marshals Service. The Task Force includes the U.S. Secret Service, U.S. Postal Inspection Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police, and the Greenwich, Hartford, Monroe, Stamford, Shelton, Stratford and Waterford Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys Anastasia E. King and David T. Huang.
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Tom Carson
(203) 821-3722
[email protected]Federal Inmate Convicted of MurderRead the Press Release
Federal inmate Kevin Marquette Bellinger, a former resident of Washington, D.C., and an inmate at the United States Penitentiary in Hazelton, West Virginia, was convicted this week for the murder of another inmate after a 5-day federal jury trial before U.S. District Judge Irene M. Keeley of the Northern District of West Virginia.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and United States Attorney William J. Ihlenfeld, II, for the Northern District of West Virginia made the announcement.
Bellinger was convicted by a federal jury on June 16, 2014, on one count of murder by a federal prisoner serving a life sentence and one count of second degree murder in a federal facility for his role in the Oct. 7, 2007, murder of inmate Jesse Harris.
According to evidence presented at trial, during a move of inmates from the recreation yard back to their cells, Bellinger and a co-defendant left the yard ahead of the others and traveled to an intersection of two corridors in the prison facility, where they confronted Harris and stabbed him with shanks in an orchestrated attack. In less than a minute, an officer approached, and the attackers fled. Officers apprehended Bellinger after a short pursuit, but they did not recover his weapon. Surveillance footage of the attack showed Bellinger and his co-defendant engaged in a verbal exchange with Harris, followed by the two attackers wielding weapons and physically assaulting Harris, who was unarmed and backing away from them.
At the time of the murder, Bellinger was serving a life sentence for an assault with intent to kill that took place in 2000, and his co-defendant was serving a life sentence for two separate homicides that took place in 1997 and 2000.
Bellinger, who is in custody pending sentencing, faces a mandatory penalty of life in prison for his conviction of murder by a federal prisoner serving a life sentence and a term of years up to life imprisonment for his conviction of second degree murder.
This case was investigated by the FBI and the U.S. Bureau of Prisons. The case was prosecuted by Trial Attorney Richard Burns from the Capital Case Section of the Justice Department’s Criminal Division and Assistant U.S. Attorney Brandon Flower.Federal Inmate Convicted of MurderRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs Specialist
WASHINGTON – Federal inmate Kevin Marquette Bellinger, a former resident of Washington, D.C., and an inmate at the United States Penitentiary in Hazelton, West Virginia, was convicted this week for the murder of another inmate after a 5-day federal jury trial before U.S. District Judge Irene M. Keeley of the Northern District of West Virginia.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and United States Attorney William J. Ihlenfeld, II, for the Northern District of West Virginia made the announcement.
Bellinger was convicted by a federal jury on June 16, 2014, on one count of murder by a federal prisoner serving a life sentence and one count of second degree murder in a federal facility for his role in the Oct. 7, 2007, murder of inmate Jesse Harris.
According to evidence presented at trial, during a move of inmates from the recreation yard back to their cells, Bellinger and a co-defendant left the yard ahead of the others and traveled to an intersection of two corridors in the prison facility, where they confronted Harris and stabbed him with shanks in an orchestrated attack. In less than a minute, an officer approached, and the attackers fled. Officers apprehended Bellinger after a short pursuit, but they did not recover his weapon. Surveillance footage of the attack showed Bellinger and his co-defendant engaged in a verbal exchange with Harris, followed by the two attackers wielding weapons and physically assaulting Harris, who was unarmed and backing away from them.
At the time of the murder, Bellinger was serving a life sentence for an assault with intent to kill that took place in 2000, and his co-defendant was serving a life sentence for two separate homicides that took place in 1997 and 2000.
Bellinger, who is in custody pending sentencing, faces a mandatory penalty of life in prison for his conviction of murder by a federal prisoner serving a life sentence and a term of years up to life imprisonment for his conviction of second degree murder.This case was investigated by the FBI and the U.S. Bureau of Prisons. The case was prosecuted by Trial Attorney Richard Burns from the Capital Case Section of the Justice Department’s Criminal Division and Assistant U.S. Attorney Brandon Flower.
Eighth Defendant Sentenced for Drug Trafficking and Conducting Illegal Cash TransactionsRead the Press Release
FRESNO, Calif. — A Tacoma, Wash. man was sentenced today for participating in an oxycodone and hydrocodone trafficking conspiracy where co-conspirators obtained prescriptions from a Central Valley doctor, filled them in area pharmacies and mailed the drugs to Washington and other states, United States Attorney Benjamin B. Wagner announced.
United States District Judge Anthony W. Ishii sentenced David Ruem, 32, to 10 years and one month in prison for his role in the drug trafficking conspiracy and for conducting illegal cash transactions to evade reporting requirements. Ruem was indicted with 12 others on April 11, 2013, and pleaded guilty in February 18, 2014. According to court documents, the defendants obtained prescriptions for oxycodone and hydrocodone from a doctor in Visalia, filled those prescriptions at pharmacies in Modesto, and then transported or mailed the pills to Washington for distribution on the black market. After illegally selling the pills, the defendants then deposited the cash proceeds of those sales into bank accounts held by the defendants in California.
In addition, Ruem admitted to structuring deposits of $145,000 into various accounts opened by co‑conspirators in California. Deposits and withdrawals were made in amounts less than $10,000 to prevent the bank from filing Currency Transaction Reports that banks are required to file on transactions greater than $10,000. These reports are filed with the Department of Treasury and are made available to law enforcement.
This case is being brought as part of Operation Footprint, a nationwide law enforcement initiative led by the U.S. Attorney’s Offices, the Internal Revenue Service- Criminal Investigation, the Drug Enforcement Administration, and the United States Postal Inspection Service. Operation Footprint targets large drug trafficking organizations by identifying the transfer of drug proceeds through financial institutions, bulk cash smuggling and other forms of money transfers. Operation Footprint is focused on bringing criminal charges based on Bank Secrecy Act violations in addition to violations of the Controlled Substances Act and the Money Laundering Control Act.
This case is also the product of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies. Assistant U.S. Attorney Grant B. Rabenn is prosecuting the case.
Seven co-defendants have been sentenced as follows:
Phary Chim, of Kent, Wash.: four years and three months in prison;
Sdey Chim, of Modesto: three years and 10 months in prison;
Chanrath Yath, of Modesto: three years and four months in prison;
Phally Thach, of Modesto: two and a half years in prison;
Raeb Chou, of Modesto: two years in prison;
Cindy Doeum, of Kent, Wash.: three years of probation; and
Chantha Chim, of Murietta: three years of probation.In connection with this case, on June 7, 2013, Visalia doctor Terrill Eugene Brown, 62, was charged with conspiracy to dispense oxycodone, dispensing of oxycodone and hydrocodone, and structuring currency transactions to avoid bank reporting requirements. The charges against him and the remaining five defendants are pending. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
District Woman Pleads Guilty to Embezzling over $193,000 in Four-Year Scheme Against Charitable Organization-Used Money for Vacations, Personal Training, Other Personal Expenses-Read the Press Release
WASHINGTON – Maria Herrmann, 53, of Washington, D.C., pled guilty today in the U.S. District Court for the District of Columbia to one count of wire fraud related to her embezzlement of over $193,000 from a charitable organization from 2004 through 2008.
The guilty plea was announced by U.S. Attorney Ronald C. Machen Jr. and Gary R. Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service.
Herrmann is to be sentenced on Sept. 4, 2014, before the Honorable James E. Boasberg. On the wire fraud charge, she faces a maximum of 20 years in prison and a $250,000 fine. In addition, as part of her guilty plea, Herrmann agreed to forfeit the amount of her fraudulent proceeds, $193,770, and pay the same amount in restitution to the charitable foundation.
As part of her guilty plea, Herrmann admitted that, between May 2004 and June 2008, she operated an on-line “e-store” with operations meant to raise funds for a non-profit charitable organization. To raise funds, the e-store auctioned various donated goods and services, as well as travel and vacation packages. Herrmann admitted to embezzling over $193,000 by wiring herself funds from the charity’s account, by using the e-store account to pay for personal purchases, and by other means.
Herrmann admitted using the charity’s funds to pay for vacations, personal training, pet care and pet supplies, and gourmet coffee, among other things. Finally, Herrmann admitted disguising her embezzlement from the charity by underreporting the e-store’s revenue.
In announcing the plea, U.S. Attorney Machen and Inspector in Charge Barksdale expressed appreciation for the work done by those who investigated the case from the U.S. Postal Inspection Service. They also commended the work of those who handled the case from the U.S. Attorney’s Office, including Paralegal Specialists Krishawn Graham and Donna Galindo, and Assistant U.S. Attorney Jonathan Hooks, who investigated and prosecuted the case.
14-138Court Bars Miami Tax Return Preparers from Preparing Returns for OthersRead the Press Release
A federal district judge in the U.S. District Court for the Southern District of Florida permanently barred Lazaro Jesus Toyos and his daughter Dilma Carida Garcia, aka Dilma Toyos Garcia, and their respective companies, L. Toyos Tax Service Inc. and Toyos Garcia Tax Service Inc., from preparing federal income tax returns for others, the Justice Department announced today.
The suit alleges that the defendants prepared thousands of tax returns and unlawfully understated income tax liabilities and overstated refunds by fabricating and/or exaggerating deductions and tax credits their clients were not eligible to take. The defendants’ practices, as alleged, include fabricating Schedule C losses for non-existent businesses, falsely claiming the First Time Homebuyer Credit for taxpayers who did not actually purchase a home and falsely claiming American Opportunity Credits for taxpayers who did not acquire education expenses or attend college. The government alleged that loss to the U.S. Treasury from the defendants’ activities may be in the millions of dollars.
In the past decade, the Justice Department’s Tax Division has obtained more than 500 injunctions to stop tax fraud promoters and tax return preparers. Information about these cases is available on the Justice Department website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Related Materials:
United States v. Lazaro Jesus Toyos, et al.
Permanent Injunction Against Defendant Lazaro Jesus Toyos and Defendant L. Toyos Tax Services, Inc., Submitted By Stipulation and Consent
Permanent Injunction Against Defendant Dilma Carida Garcia, AKA Dilma Toyos Garcia, and Defendant Toyos Garica Tax Service, Inc., Submitted By Stipulation and ConsentCharleston Man Pleads Guilty in Federal Court to Selling OxycodoneRead the Press Release
Charleston, W.Va. – Daniel B. Moore, age 60, of Charleston, West Virginia pled guilty today before U.S. District Judge John T. Copenhaver, Jr., to aiding and abetting the distribution of oxycodone. During the plea hearing, Moore admitted that on February 25, 2013, he assisted in the sale of 47 oxycodone pills, also called “roxycodone,” for $1,600 to a confidential informant working with the Metro Drug Unit. The drug deal took place at Moore’s home on Kirkwood Drive in Charleston. Following the drug deal, police searched Moore’s home where they retrieved the money that the confidential informant had used to buy the drugs. Police also found more oxycodone pills intended for distribution in the Charleston area. Moore faces up to 20 years imprisonment and a $1,000,000.00 fine when he is sentenced on September 15, 2014.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Casino Owner Sentenced in New Jersey to 46 Months in Prison for Evading Nearly $1.3 Million in Income Taxes from Trinidad CasinoRead the Press Release
TRENTON, N.J. – The owner of several New Jersey businesses was sentenced today to46 months in prison for evading taxes on income from his ownership of a casino in Trinidad, costing the United States approximately $1.3 million in tax losses, U.S. Attorney Paul J. Fishman announced.
David Migliore, 51, of Brielle, N.J., previously pleaded guilty before U.S. District Judge Mary L. Cooper to one count of an indictment charging him with evading taxes with respect to his 2011 personal tax return. Judge Cooper imposed the sentence today in Trenton federal court.
According to the documents filed in this case and statements made in court:
Migliore owns Brielle Investment LLC, Brielle Investments & Management Co. LLC and La Soufriere Maritime Inc. – all headquartered in New Jersey – as well as Island Club Casino in Trinidad.
From 2009 to 2011, Migliore earned millions of dollars from Island Club Casino, resulting in $1,286,657 in taxes due. During that time, Migliore took steps to conceal his income and assets from the IRS. At his guilty plea proceeding, Migliore admitted to using unreported bank accounts in Trinidad to deposit personal income, using U.S. bank accounts in the names of his New Jersey business entities to receive income from Island Club Casino and to using those business entities to pay for personal expenses.
Migliore also admitted to transferring income from Island Club Casino directly to vendors in the U.S. for personal expenses and directing Island Club Casino employees to send his income through Western Union to individuals in New Jersey who collected the cash on his behalf.
In addition to the prison term, Judge Cooper sentenced Migliore to serve three years of supervised release. As part of his guilty plea and sentence, Migliore also has paid restitution of $1,286,657 to the IRS.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees in Newark; as well as law enforcement officers from the Monmouth County Prosecutor’s Office, under the direction of Acting Monmouth County Prosecutor Christopher J. Gramiccioni; police officers from Wall Township Police Department, under the direction of Chief Robert Brice; and international assistance from the Financial Intelligence Unit for Trinidad & Tobago, with the investigation. U.S. Attorney Fishman also thanked the Department of Justice’s Office of International Affairs for assistance provided.
The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
14-218
Defense counsel: Robert Weir Esq., Red Bank, N.J.Buffalo Man Pleads Guilty to Robbery and Extortion ChargesRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Kashika Speed, 41, of Buffalo, N.Y., pleaded guilty before U.S. District Court Judge Richard J. Arcara, to robbery and conspiracy to commit robbery and extortion of assets. The charges carry a maximum penalty of 20 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that the defendant and others conspired to commit the robbery of cocaine and U.S. currency from a victim, who was an individual involved in the distribution of cocaine in the Western District of New York. During the robbery, Speed and others went to the victim’s residence in Buffalo, restrained the victim, brandished a firearm, and threatened to kill the victim if he did not provide cocaine to the defendant and his accomplices. As a result, the victim made a phone call to one of his associates, and arranged for two kilograms of cocaine to be provided to the defendant and the others. After receiving the cocaine, Speed and the others released the victim.
“This case demonstrates that in our continuing efforts to remove violent predators from the streets, law enforcement will prosecute even those who would prey upon others engaged in criminal behavior,” said U.S. Attorney Hochul. “This in turn benefits our community as a whole because, in this case alone, the defendant will likely serve substantial jail time and will no longer be a threat to residents.”
Sentencing is scheduled for September 29, 2014, at 1:30 p.m. before Judge Arcara.
The plea is the culmination of an investigation on the part of the FBI Safe Streets Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, New York Field Division, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.Bay Area Man Sentenced to Prison for Investment FraudRead the Press Release
SACRAMENTO, Calif. — Alfred John Schlette, 60, of San Ramon, was sentenced today in San Francisco by Chief United States District Judge Claudia Wilken of the Northern District of California to three years and five months in prison for mail fraud, United States Attorney Benjamin B. Wagner announced. Schlette was also ordered to pay $1.7 million in restitution to more than 10 victims.
According to court documents, Schlette told individuals that they could invest funds with him that would be pooled and used for day trading. Schlette sent his investors monthly statements showing a significant return on each individual's investment. In truth, Schlette never invested any of the money, using the funds on personal expenses. The monthly statements he generated and sent to investors were from an educational stock trading tool and had no connection to any actual investments.
This case was the product of an investigation by the Federal Bureau of Investigation and the Contra Costa County Sheriff's Department. The United States Attorney's Office for the Northern District of California was recused from the case. Assistant United States Attorney Jared C. Dolan from the Eastern District of California prosecuted the case in the United States District Court for the Northern District of California.Alleged Associate of “NullCrew” Arrested on Federal Hacking Charge Involving Cyber Attacks on Companies and UniversitiesRead the Press Release
CHICAGO — A Tennessee man was arrested and charged with federal computer hacking for allegedly conspiring to launch cyber attacks on two universities and three companies since last summer, federal law enforcement officials announced today. The defendant, TIMOTHY JUSTIN FRENCH, is allegedly associated with a group of individuals, known as “NullCrew,” who have claimed responsibility for dozens of high-profile computer attacks against corporations, educational institutions, and government agencies.
French, 20, was arrested without incident by FBI agents at his home in Morristown, Tenn., east of Knoxville, last Wednesday. He waived a detention hearing today in Federal Court in Knoxville, and will be transferred in custody to face prosecution in U.S. District Court in Chicago, where no court date has yet been scheduled. French was charged with conspiracy to commit computer fraud and abuse in a criminal complaint that was filed under seal on June 3 and was unsealed upon his arrest.
French, also known as “Orbit,” “@Orbit,” “@Orbit_g1rl,” “crysis,” “rootcrysis,” and “c0rps3,” and members of NullCrew allegedly launched computer attacks that resulted in the release of computer data and information, including thousands of username and password combinations.
“Cyber crime sometimes involves new-age technology but age-old criminal activity ― unlawful intrusion, theft of confidential information, and financial harm to victims,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “Hackers who think they can anonymously steal private business and personal information from computer systems should be aware that we are determined to find them, to prosecute pernicious online activity, and to protect cyber victims.”
According to the complaint affidavit, NullCrew has used Twitter accounts to announce dozens of attacks against various victims, including the websites of two organizations in July 2012 and eight computer servers belonging to a large company in September 2012. In both instances, the announcements included links to posts on Pastebin, a website that allows uploading of text files for others to view, containing usernames and passwords associated with those victims. In November 2012, NullCrew announced an attack on a foreign government’s ministry of defense, releasing more than 3,000 usernames, email addresses, and passwords purportedly belonging to members of the defense ministry.
The affidavit states that the FBI has been working with a confidential witness who was invited to join online chats with members of NullCrew. During these chats, which occurred through Skype, Twitter, and CryptoCat, Nullcrew members discussed past, present, and future computer hacks, shared current computer vulnerabilities and planned target, and discussed releases of their victims’ information. The witness has assisted with the investigation primarily in an effort to help the FBI, the affidavit states.
The complaint charges French with involvement in five cyber attacks launched by NullCrew: a July 19, 2013, attack on University A, a large public university; a Feb. 1, 2014, attack on Company A, a large Canadian telecommunications company; attacks in early 2014 against University B and California-based Company B, both announced by NullCrew on April 20, 2014 as part of a series of hacking attacks; and an attack against Company C, a large mass media communications company, that NullCrew announced on Feb. 5, 2014.
In each of these instances, information allegedly hacked from the victims’ computers was released by NullCrew and caused significant financial damages to the universities and companies, including the costs of responding to the computer intrusions, conducting damage assessments, and restoring the computer systems.
During each of the attacks, the investigation identified a computer user named “Orbit,” who was using an internet protocol (IP) address assigned to French’s Morristown, Tenn., address. Records from the victims’ computers show access from the same IP address at or around the time the attacks were being discussed or occurred, according to the complaint.
The computer hacking charge in this case carries a maximum sentence of 10 years in prison and a $250,000 fine. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The arrest and charge were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The investigation is continuing, they said.
The government is being represented by Assistant U.S. Attorney William Ridgway.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
Additional Charges Filed Against Former Jackson Attorney Clay Mccormack for Bank Fraud, Making False StatementsRead the Press Release
Jackson, TN – A superseding indictment was returned today by a federal grand jury against Clay McCormack, 49, of Jackson, TN, for his role in a scheme to fraudulently obtain loan proceeds from federally insured mortgage lenders, announced U.S. Attorney Edward L. Stanton III.
McCormack was initially charged in March, 2013 with two counts each of bank fraud and making false statements. The superseding indictment adds additional bank fraud and making false statements charges and alleges that as early as October 2007, McCormack entered into a criminal conspiracy with James Lee Bishop, a local real estate investor. Bishop would recruit individuals or limited liability companies to purchase real property for the purpose of investment. While acting as the closing attorney for Teel, McCormack and Maroney, a law firm in Jackson, TN, McCormack would indicate on the HUD-1 reporting documentation that certain lenders were paid off via check as a result of the closing. He would then void those checks, or have others void the checks, within days and reissue the checks to Bishop.
This money was then used by Bishop to provide the funds at closing on behalf of the borrowers, who would not have otherwise qualified for the loan. The paperwork would fraudulently reflect that the funds had actually been provided by the borrowers.
The superseding indictment charges McCormack with seven counts of bank fraud and six counts of making false statements. The bank fraud charges allege that McCormack defrauded the First State Bank, First South Bank, and Community Bank by conducting real estate closings and failing to pay off the original mortgages, while the false statement charges allege that he created false documentation and submitted it to the banks in furtherance of his crime.
McCormack’s co-conspirator, James Lee Bishop, pled guilty to bank fraud in February 2014. His sentencing hearing is set for August 29, 2014 before District Judge S. Thomas Anderson.
McCormack faces up to 30 years in prison and a one million dollar fine for each of the seven bank fraud counts; and up to five years in prison and a $250,000 fine for each of the six counts of making false statements.
This case was investigated by the FBI Memphis – Jackson Resident Agency, the Federal Deposit Insurance Corporation, and by the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorneys Victor L. Ivy and Matthew J. Wilson on behalf of the government.The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Additional Charges Filed Against Former Jackson Attorney Clay Mccormack for Bank Fraud, Making False StatementsRead the Press Release
Jackson, TN – A superseding indictment was returned today by a federal grand jury against Clay McCormack, 49, of Jackson, TN, for his role in a scheme to fraudulently obtain loan proceeds from federally insured mortgage lenders, announced U.S. Attorney Edward L. Stanton III.
McCormack was initially charged in March, 2013 with two counts each of bank fraud and making false statements. The superseding indictment adds additional bank fraud and making false statements charges and alleges that as early as October 2007, McCormack entered into a criminal conspiracy with James Lee Bishop, a local real estate investor. Bishop would recruit individuals or limited liability companies to purchase real property for the purpose of investment. While acting as the closing attorney for Teel, McCormack and Maroney, a law firm in Jackson, TN, McCormack would indicate on the HUD-1 reporting documentation that certain lenders were paid off via check as a result of the closing. He would then void those checks, or have others void the checks, within days and reissue the checks to Bishop.
This money was then used by Bishop to provide the funds at closing on behalf of the borrowers, who would not have otherwise qualified for the loan. The paperwork would fraudulently reflect that the funds had actually been provided by the borrowers.
The superseding indictment charges McCormack with seven counts of bank fraud and six counts of making false statements. The bank fraud charges allege that McCormack defrauded the First State Bank, First South Bank, and Community Bank by conducting real estate closings and failing to pay off the original mortgages, while the false statement charges allege that he created false documentation and submitted it to the banks in furtherance of his crime.
McCormack’s co-conspirator, James Lee Bishop, pled guilty to bank fraud in February 2014. His sentencing hearing is set for August 29, 2014 before District Judge S. Thomas Anderson.
McCormack faces up to 30 years in prison and a one million dollar fine for each of the seven bank fraud counts; and up to five years in prison and a $250,000 fine for each of the six counts of making false statements.
This case was investigated by the FBI Memphis – Jackson Resident Agency, the Federal Deposit Insurance Corporation, and by the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorneys Victor L. Ivy and Matthew J. Wilson on behalf of the government.The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Sunday 15 June 2014
Michigan Man Sentenced to 40 Years for Sexting with Teenage GirlRead the Press Release
GRAND RAPIDS, MICHIGAN – Derik Eugene Rothrock, 35, of Sturgis, Michigan, who pled guilty in federal court in March to receiving sexually explicit cell phone photos of a 15-year-old West Michigan girl, was sentenced on July 14 to a term of imprisonment of 40 years followed by a lifetime of supervised release, U.S. Attorney Patrick A. Miles, Jr. announced today. In exchange for his guilty plea, the U.S. Attorney’s Office dismissed four counts of enticing three children to produce child pornography of themselves using their cell phones, and one count of possessing child pornography.
The federal penalty for receiving child pornography is usually a mandatory minimum of five years’ imprisonment and a maximum of 20. However, Rothrock faced an enhanced sentence of 15 to 40 years because he has a prior conviction for Criminal Sexual Conduct, Second Degree (Person under 13) in the 15th Circuit Court in Coldwater, Michigan. Shortly after his release from state prison on that offense, he violated parole by having inappropriate contact with children, including a sexual relationship, for which he was returned to prison. In July 2013, he met three West Michigan girls – ages 12, 14, and 15 – over a long weekend, sexually abused two of them, and convinced all of them to send him sexually explicit photos of themselves over text messages. Rothrock, then 34 years old, used a fake name and Facebook page with all three victims and told them he was either 19 or 21 years old.
In pronouncing the sentence, U.S. District Judge Janet T. Neff stated that Rothrock’s “life has been out of control pretty much his entire life,” and “the longer we can keep him away from society, and young girls in particular, the better.” In denying Rothrock’s request for a below-guideline sentence based on his own history of being sexually abused as a child, the judge emphasized the need for individualized deterrence. “In terms of receipt of child pornography cases being scaled from 1-10, this one is a 10 or more. I do not think I have seen a receipt of child pornography case more serious than this one,” explained the judge.
U.S. Attorney Miles said, “We are pleased Mr. Rothrock can no longer prey on vulnerable children, kill their innocence, and steal more childhoods. This U.S. Attorney’s Office is committed to aggressively fighting child predators who use technology and social media for evil.”
The case was jointly investigated by the Township of Kalamazoo Police Department, Michigan State Police, Federal Bureau of Investigation, Kalamazoo County Prosecutor’s Office, and the U.S. Attorney’s Office. Assistant U.S. Attorney Tessa K. Hessmiller prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney's Office; county prosecutor's offices; the Internet Crimes Against Children task force (ICAC); the West Michigan Based Child Exploitation Task Force (WEBCHEX); and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html
END
Friday 13 June 2014
Week in Review - South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Jose Mario Sanchez, 40, of Goshen, Indiana pled guilty to the felony offense of conspiring to distribute cocaine. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Agency. Sentencing has been set for 9/11/2014. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
- Melvin Darnell White, 26, of South Bend, Indiana pled guilty to the felony offense of being a felon in possession of a firearm. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the South Bend Metro Special Operations and St. Joseph County Metro Homicide Unit. Sentencing has been set for 9/16/2014. This case is being prosecuted by Assistant United States Attorney William Grimmer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITION
- Brittany Coburn, 24, of LaPorte, Indiana was sentenced to 1 year supervised probation and 100 hours community service after pleading guilty to the misdemeanor offense of obstructing the mail. According to documents filed in this case, Coburn was hired as a mail carrier in LaPorte, Indiana, in September 2013. In October 2013, she abandoned a large quantity of mail in several locations behind a baseball field. The mail she abandoned included approximately 514 items, of which approximately 237 were first class mail. This mail was addressed to 152 different individuals. Coburn lied about her conduct but ultimately admitted it when confronted. This case was the result of an investigation by United States Postal Service – Office of the Inspector General. This case was prosecuted by Assistant United States Attorney Jesse Barrett.
Week in Review - HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Fayez Abdallah, 69, of Chicago, Illinois pled guilty before District Judge Rudy Lozano to the felony offense of wire fraud in a scheme to defraud the Indiana SNAP program. This charge was filed as a result of an investigation by the Federal Bureau of Investigation and the Department of Agriculture (USDA). This case is being prosecuted by Assistant United States Attorney Diane Berkowitz.
- Amjad Muhamad, 38, of Chicago, Illinois pled guilty before District Judge Rudy Lozano to the felony offense of wire fraud in a scheme to defraud the Indiana SNAP program. This charge was filed as a result of an investigation by the Federal Bureau of Investigation and the Department of Agriculture (USDA). This case is being prosecuted by Assistant United States Attorney Diane Berkowitz.
- Ashraf Muhamad, 41, of Oak Lawn, Illinois pled guilty before District Judge Rudy Lozano to the felony offense of wire fraud in a scheme to defraud the Indiana SNAP program. This charge was filed as a result of an investigation by the Federal Bureau of Investigation and the Department of Agriculture (USDA). This case is being prosecuted by Assistant United States Attorney Diane Berkowitz.
- Yousef Muhamad, 44, of Chicago, Illinois pled guilty before District Judge Rudy Lozano to the felony offense of wire fraud in a scheme to defraud the Indiana SNAP program. This charge was filed as a result of an investigation by the Federal Bureau of Investigation and the Department of Agriculture (USDA). This case is being prosecuted by Assistant United States Attorney Diane Berkowitz.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Israel Castro, 25, of Mexico was sentenced to 4 months imprisonment after pleading guilty to the felony offense of entry of alien at improper time or place. This case was the result of an investigation by the Bureau of Immigration & Customs Enforcement (ICE). This case was prosecuted by Assistant United States Attorney Thomas McGrath.
- Natisha Hillard, 25, of Gary, Indiana was sentenced to 292 months imprisonment, followed by supervised release for life after pleading guilty of sale of a child by a parent for production of child pornography and sexual exploitation and permitting a child by a parent to participate in the production of child pornography. The investigation of this case began on February 13, 2013 when a third party contacted the FBI and reported that Bour had invited her to watch him sexually abuse a child. Bour’s home was searched later that day and child pornography was found, but Bour adamantly denied sexually abusing any children and claimed his texts with the third party were “fantasy” and “role playing.” Nine days later, law enforcement found depictions of Bour sexually abusing an infant on his computer and noted the presence of an adult female, later identified as Natisha Hillard. Hillard was interviewed later that day admitted that Bour had paid her a total of approximately $500 in exchange for her allowing him to sexually abuse her youngest child on several different occasions. Hillard signed a plea agreement with the government and agreed to testify against Bour. Prior to Hillard’s sentencing, the government filed a motion pursuant to United States Sentencing Guideline Section 5K1.1 and Title 18, United States Code, Section 3553(e) asking the Court to give Hillard credit for her substantial cooperation in the case. This case was the result of an investigation by the Indiana Internet Crimes Against Children Task Force, including the Federal Bureau of Investigation (FBI), the Indiana State Police, the Gary Police Department and the Michigan City Police Department. This case was prosecuted by Assistant United States Attorney Jill Koster.
Week in Review - Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Scott Robb, 44, of West Chester, Ohio was sentenced to time served, 2 years supervised release and ordered to pay $197,770.06 in restitution after pleading guilty to the felony offense of theft of property of the Veterans Administration Medical Center (VAMC) and misdemeanor offense of introduction into interstate commerce of stolen medical devices that were misbranded. According to documents both filed in this case and information made public during the prosecution, in August 2010 Northern Indiana Veterans Administration Police Chief reported that four Olympus scopes were reported missing and possibly stolen from the Endoscopy Department at the Fort Wayne, Indiana VAMC. Olympus service records showed that Robb was at the Fort Wayne VAMC on 7/1/2010 for a service call. Investigators learned that in May 2010, in Ohio, Veterans Administration Police Chief reported that two Olympus endoscopes had been missing since 4/1/2010 and were last used in between April 2009 and March 2010. A third missing scope was identified during further review, which was last used in March 2010. A fourth scope was identified as missing on 8/17/2010 and was believed to be missing as long as the previous three. The value of the prescription medical devices range between $25,775.36 and $28,102.30 and the loss to Ohio VAMC totaled $108,670.06. According to the investigation, Robb stole the medical devices and sold them to an individual in Mexico and the information was discovered after one of the stolen devices that had been sold was found in a medical facility in Nebraska and traced back to the VAMC. This case was the result of an investigation by the Department of Veteran’s Affairs, Office of the Inspector General and the United States Food and Drug Administration. This case was prosecuted by Assistant United States Attorney Tina L. Nommay.
- Darwin Altamirano, 31, of Fort Wayne, Indiana, was sentenced to 12 months imprisonment with time served and given 1 year supervised released after pleading guilty to the felony offense of withholding information on a crime. According to documents filed in this case, between July 2011 and February, 2013, Altamirano concealed cocaine within a vehicle used to transport it intended for distribution by another. This case was the result of an investigation by the FBI Fort Wayne Safe Streets Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Fort Wayne Safe Streets Task Force is comprised of FBI agents and officers from the Indiana State Police, Allen County Police Department, and Fort Wayne Police Department. The New Haven Police Department, Steuben County Sheriff's Department, Elkhart County Interdiction and Covert Enforcement Unit, South Bend Police Department, and IMAGE Drug Task Force assisted with this investigation. This case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
Waterloo Convenience Store Manager Pleads Guilty to Distributing Synthetic Drug Known as "Bath Salts"Read the Press Release
Earl James Ramos, age 26, from Waterloo, Iowa, who managed a convenience store in Waterloo where he sold synthetic drugs commonly known as “bath salts” pled guilty today in federal court in Cedar Rapids.
Ramos was convicted of distributing pentedrone, an illegal controlled substance analogue under federal law. The term “controlled substance analogue” refers to substances that are chemically similar to, and have substantially similar or greater effects on humans than substances in Schedule I or II. “Controlled substance analogues” are illegal under federal law if intended for human consumption. Pentedrone is in the class of substances commonly referred to as “bath salts,” and is a synthetic form of the Schedule I stimulant methcathinone.
At the plea hearing, Ramos admitted he distributed pentedrone to another person in Waterloo on October 2, 2012. He also admitted he knew the pentedrone was intended to be used for human consumption.
According to information in the public court record, Ramos was the manager of the Five Star Snacks and I-Wireless store in Waterloo, Iowa. Beginning in at least 2012, Ramos began selling synthetic controlled substances from the Five Star Snacks store and in other locations, upon request of certain customers. The synthetic controlled substances included synthetic cannabinoids (commonly referred to as “K2,” “incense,” “potpourri,” “Spice,” among other names) and synthetic cathinones (commonly referred to as “bath salts”). sold synthetic cannabinoid products with the “brand” names of Mr. Nice Guy, KMA, 101, Caution, California Dreams, Diablo, Hydro Kush, King Kong, Mr. Happy, Insane, and Hydro 777. Ramos sold synthetic cathinones under the “brand” names of “Diamond,” White Angel,” “Pump It,” and “Blue.” The substance contained in the containers of “Diamond” and “Pump It” was pentedrone. The substances contained in the containers of “Blue” were α-PVP. As of May 16, 2013, α-PVP became a Schedule I controlled substance.
Court records also reflect that in May 2012 law enforcement seized “K2” products from the store. At some point after this seizure, the store again began to sell the products, but kept them hidden from view and only sold to known individuals.
Ramos’s store and residence in Waterloo were searched in June 2013. During the search, officers seized a total of 1294 packets of suspected synthetic cannabinoids and 418 units of suspected synthetic cathinones. Ramos was again told by officers not to sell the synthetic controlled substances because it was against the law to do so. Court records reflect that Ramos initially stopped selling synthetic controlled substances from Five Star Snacks. In at least November 2013, however, Ramos again began selling the synthetic controlled substance products from the Five Star Snacks and I Wireless. On December 23, 2013, January 3, 2014, and February 10, 2014, members of DNE and TCDETF again conducted controlled purchases of “bath salts” from Ramos at the Five Star Snacks/I Wireless in Waterloo, Iowa.On March 10, 2014, officers again conducted search warrants at Ramos’s residence and the Five Star Snacks and I Wireless. During the searches, officers seized 19 packages of synthetic cannabinoids labeled “Diablo Platinum” and 87 containers of “Blue.” Some of the packages of “Diablo Platinum” were located on a shelf in plain view on a shelf in the office area of the Five Star Snacks. Officers also found Ramos’s loaded, 9 mm Ruger pistol on top of some cigar boxes within arm’s reach of the Diablo Platinum. The “Diablo Platinum” was sent to the DCI laboratory, which determined the substance contained in the packages was XLR-11, a Schedule I controlled substance. In all, officers found approximately 59.48 grams of XLR-11 in Ramos’s possession on March 10, 2014. The DCI laboratory also determined that the containers of “Blue” (both purchased during the controlled buys and seized by officers during the March 10 search) contained approximately 32.0255 grams of the Schedule I Controlled Substance α-PVP.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Ramos was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Ramos faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, $100 in special assessments, and up to a lifetime term of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Dan Chatham and was investigated by as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Tri-County Drug Enforcement Task Force; the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa Division of Narcotics Enforcement; and the Sixth Judicial District Department of Correctional Services; the Federal Bureau of Investigation; the Department of Homeland Security; and the Internal Revenue Service.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR14-2014-1-LRR.
Two Members of Holland Latin Kings Convicted of RacketeeringRead the Press Release
Conviction Follows Ten-Day Jury Trial
GRAND RAPIDS, MICHIGAN – A federal jury convicted David Casillas and Antonio Rios, both of Holland, Michigan, of racketeering and cocaine conspiracies today. Both defendants were charged, along with 29 other defendants, with conspiracy to engage in racketeering activity (“RICO”) for their roles in a violent, drug-trafficking street gang known as the Holland Latin Kings. The jury found sufficient proof the racketeering activity of both defendants involved at least 5 kilograms of cocaine; but the jury found insufficient proof that Rios committed two assaults with intent to murder that were not alleged against Casillas. The other count of conviction related to a separate conspiracy to distribute more than five kilograms of cocaine. Defendant Rios was acquitted of a separate marijuana conspiracy charge. Each defendant faces a maximum sentence of life imprisonment, with a mandatory minimum sentence of ten years in prison. Sentencing is scheduled for October 14, 2014.
The case resulted from a two-year grand jury investigation. The U.S. Attorney’s Office for the Western District of Michigan was assisted in the investigation by the Holland Police Department; the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Ottawa County Prosecutor’s Office; the Ottawa County Sheriff’s Department; the Michigan State Police; the West Michigan Enforcement Team (WEMET); the Michigan Department of Corrections; and the Kerr County, Texas, Sheriff’s Department. The other 29 defendants had already pled guilty to their roles in the racketeering conspiracy.
U.S. Attorney for the Western District of Michigan Patrick Miles, Jr. remarked, “The successful federal prosecutions of the 31 defendants associated with the Holland Latin Kings is the result of an effective collaboration among a variety of local and federal law enforcement and prosecution agencies. Working together we achieved a positive result for the Holland community.”
ATF Special Agent in Charge Steven J. Bogdalek said, “These guilty convictions show that collaborative law enforcement partnerships work in targeting violent gangs and have an impact on reducing violent crime. ATF is always honored to work with the Holland Police Department, WEMET/MSP, Ottawa County Sheriff’s Office, Michigan Department of Corrections and the Kerr County Texas Sheriff’s Office.”
Holland Police Chief Matt Messer noted “We are pleased with outcome of this lengthy investigation that has had a substantial positive impact on the Holland area and has solved crimes reaching back over the last three decades. And we appreciate the local and federal collaboration on this case that resulted in the successful prosecution of 31 high ranking members of the Latin Kings gang.”
Ottawa County Sheriff Gary Rosema added that “The Ottawa County Sheriff’s Office is also very pleased with the outcome of this investigation and the verdict that has been rendered as it relates to Luis Rios and David Casillas. We are hoping that our communities understand and appreciate the priority that has been placed on this investigation and prosecution, as this is important in making our communities a safe place to live and visit.”
This case was prosecuted by Assistant U.S. Attorneys Russell A. Kavalhuna and Phillip J. Green.
END
Three Gang Members Sentenced to Decades in Prison for Taking Part in Conspiracy That Led to Murders, Shootings and Other Violence-One Murder Took Place Outside A Funeral in Northwest Washington-Read the Press Release
WASHINGTON – Three members of a criminal street gang based at 14th and Girard Streets in Northwest Washington were sentenced today to decades-long prison terms on murder and other charges stemming from a conspiracy to assault, kill, and threaten their rivals and obstruct justice.
The sentences, in the Superior Court of the District of Columbia, were announced by U.S. Attorney Ronald C. Machen Jr., Cathy L. Lanier, Chief of the Metropolitan Police Department, and Robert D. MacLean, Acting Chief of the U.S. Park Police.
The defendants, all from Washington, D.C., include Robert Givens, 21; Lester Williams, 26, and Marcellus Jackson, 25. A fourth defendant, Keir Johnson, 24, will be sentenced at a later date.
The men were found guilty in March 2014, following nearly four months of trial. Givens, Johnson and Williams were found guilty of murder and other offenses. Jackson was found guilty of murder, conspiracy, assault with a dangerous weapon, and related offenses.
The Honorable Lynn Leibovitz sentenced Givens to 30 years in prison; Williams to 47 ½ years of incarceration; and Jackson to a 38-year prison term.
The 14th and Girard gang, also known as G-Rod, 1-4, and the Cut Crew, was centered in the areas of 14th and Girard and 14th and Fairmont Streets NW. The group was engaged in a longstanding conflict with rival crews, especially ones that were based in the areas of 17th and Euclid Streets NW and the 600 block of Morton Street NW. The gang’s victims included Sean Robinson, 18, who was killed in the parking lot of a school in August 2010, and Jamal Coates, 21, who was killed following a funeral in September 2010.
Givens was found guilty of second-degree murder while armed in the slaying of Mr. Robinson, as well as a charge of assault with a dangerous weapon involving a second victim shot at the scene. He also was found guilty of conspiracy, firearms offenses, and charges that he committed the crimes for the benefit of a criminal street gang.
Johnson and Williams were each found guilty of first-degree murder while armed in the killing of Mr. Coates. They also were found guilty of assault with intent to kill in the shooting of another individual in that attack, as well as assault with a dangerous weapon for firing upon a third person that day. Johnson and Williams also were found guilty of conspiracy, firearms offenses, and charges that they committed the crimes for the benefit of a criminal street gang. Finally, Johnson also was found guilty of a charge of assault with intent to kill while armed stemming from a separate attack in June 2010 in which a man was wounded.
In addition to conspiracy, Jackson was found guilty of second-degree murder in the slaying of Mr. Coates, assault with a dangerous weapon involving an attack against one of the individuals with Mr. Coates, and charges that he committed the offenses for the benefit of a criminal street gang.
According to the government’s evidence, the shootings resulted from a longstanding conflict with rival crews. The government presented evidence of these and other crimes:
June 27, 2010: Johnson chased, shot, and attempted to kill a rival crew member in the parking lot of a gas station in the 3400 block of Georgia Avenue NW.
Aug. 11, 2010: Givens and others committed the murder of Mr. Robinson, who lived in the area of 17th and Euclid Streets, as well as the shooting of two 14-year-olds who were with him while they stood together in the parking lot of a school in the 2600 block of Mozart Street NW.
Sept. 28, 2010: Johnson and Williams committed the murder of Mr. Coates, a rival crew member, near 13th and U Streets NW, during the funeral procession for a young female with family ties to the rival crew. In addition to shooting Mr. Coates, Williams and Johnson shot a second person in the attack and fired upon a third individual. Jackson provided assistance to Johnson and Williams.
After the funeral shooting, the defendants took many steps to attempt to obstruct justice and avoid prosecution, such as trying to find and locate witnesses and in the case of two of the defendants, fleeing to North Carolina.
The men were indicted in December 2011, following an investigation by the Metropolitan Police Department, the U.S. Park Police, and the Drug Enforcement Administration. Two other members of the crew earlier pled guilty to charges stemming from their violent conduct.
In announcing the sentences, U.S. Attorney Machen, MPD Chief Lanier, and Acting U.S. Park Police Chief MacLean thanked those who investigated the case from theMPD, the Park Police, and the DEA. They also expressed appreciation for the assistance provided by the U.S. Marshals Service; the FBI/MPD Safe Streets Task Force; the U.S. Postal Inspection Service; the FBI Cellular Analysis Survey Team; the FBI Digital Forensic and Analysis Section; the U.S. Secret Service Forensic Sciences Division; the District of Columbia Department of Corrections Office of Investigative Services; the District of Columbia Department of Forensic Sciences; the Washington D.C./Baltimore High Intensity Drug Trafficking Area; the Alexandria, Va. Police Department; the Marlboro County, S.C. Sherriff’s Office, and the Miami-Dade County State’s Attorney’s Office. They also acknowledged the assistance of Bruce Budowle, PhD, executive director of the University of North Texas Health Science Center’s Institute of Investigative Genetics.
They expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Assistant U.S. Attorneys Sharad Khandelwal and Joseph P. Cooney, who helped secure the indictment; Assistant U.S. Attorney Kacie Weston, who assisted with trial preparation; Assistant U.S. Attorneys Chrisellen Kolb and David Goodhand who assisted with legal analysis; and Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation. In addition, they acknowledged the work of Legal Assistants Kendra Johnson, Marian Russell, Sharon Newman, Kwasi Fields, Philip Aronson, and Benjamin Kagan-Guthrie; former Intelligence Analyst Lawrence Grasso; Intelligence Analyst Zachary McMenamin; Information Technology Specialist Leif Hickling; Victim/Witness Security Specialists Michael Hailey, M. Laverne Forrest, Debra Cannon, Tanya Via, and Katina Adams; Victim/Witness Advocate Marcia Rinker; and Criminal Investigators Durand Odom, Tommy Miller, Mark Crawford, and Christopher Brophy.
Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Todd Gee, Emily Miller, Laura Bach, and Deborah Sines, who prosecuted the case.
14-136Statement by Attorney General Holder on the Passing of Ruby DeeRead the Press Release
WASHINGTON, DC – U.S. Attorney General Eric Holder released the following statement Friday on the passing of actress Ruby Dee:
“I was deeply saddened to learn of the passing of Ruby Dee – a legendary actress and a lifelong champion for civil rights and social justice.
“Rising from humble origins to the heights of stardom, Ruby Dee broke down barriers and left her mark from Harlem, to Broadway, to Hollywood and far beyond. She was also an extraordinary role model for generations of Americans – and particularly for African-American women and girls – during a time when black stars were rare on both stage and screen.
“Tellingly, she was never content merely to advance her own remarkable career, lending her voice and her considerable fame to causes from the American Civil Rights Movement to the global campaign against Apartheid. She stood with Dr. King and other leaders at the 1963 March on Washington, and later spoke at his funeral. She won extensive recognition for her achievements on stage, on the radio, in film, and on television. And she never slowed down or let up, delivering powerful performances and speaking out against injustice – often alongside her late husband, the great Ossie Davis – over the course of a career spanning more than six decades.
“I will always remember Ruby Dee was a wonderful entertainer, a truly great actress, a fierce activist, and an indispensable leader in the fight for civil rights. She left an indelible impression on me when, as a young man, I saw her unforgettable performance in A Raisin in the Sun. Today, I join millions of Americans in expressing my heartfelt condolences, and deepest sympathies, to her family and friends. Her work, her example, and her memory will endure. But she will be dearly missed.”
Southwest Virginia Coal Dealer Sentenced to Federal Prison for FraudRead the Press Release
GREENEVILLE, Tenn. – Dale Edward Stanley, 54, of Clintwood, Va., was sentenced on June 11, 2014, by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 12 months and one day in federal prison. A fine of $10,000 was also imposed. Following release from prison, Stanley will be subject to three years of supervised release under the supervision of a federal probation officer and must complete 200 hours of community service. Stanley will also be required to pay restitution in an amount to be determined by a later order of the Court.
Stanley was indicted in November 2012 for 22 counts of wire fraud involving a scheme to defraud Eastman Chemical Company (Eastman), Kingsport, Tenn., on spot market purchases of coal. He later pleaded guilty to one count of wire fraud. According to his plea agreement on file with the U.S. District Court, Stanley, the owner of Mountain Energy Resources, Inc., Norton, Va., contracted with Eastman to provide steam coal, which was to have a high BTU rate and low ash rate. In his plea agreement, Stanley admitted that he devised a scheme to defraud Eastman on the coal sales by circumventing the testing of the coal he sold to Eastman. His contract with Eastman stipulated that he would provide a certain quality of coal to Eastman and the coal would be tested to ensure it met the contract specifications. Stanley circumvented the testing process by bribing an employee of a coal testing service to submit unrepresentative samples of coal for analysis. As a result, Eastman believed they were receiving the quality of coal specified in the contract with Stanley, although he had actually directed his employees to load lower quality coal for the shipments to Eastman. Stanley caused to be sent via interstate wire communications false and fraudulent invoices for payment to Eastman and was paid for higher quality coal than he actually provided. Stanley engaged in this scheme to defraud Eastman from approximately February 2010 through February 2012.
This case is the result of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Neil Smith and Suzanne Kerney-Quillen represent the United States.