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Wednesday 11 June 2014
Joplin Man Indicted for Producing Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man was indicted by a federal grand jury today on charges related to producing and distributing child pornography.
James Hajny, 49, of Joplin, was charged in a three-count indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that Hajny used a minor victim, identified as “Jane Doe #1,” to produce child pornography in May 2014. Hajny is also charged with distributing pornographic images of Jane Doe #1 over the Internet between Dec. 12, 2013, and May 12, 2014. The indictment also charges Hajny with possessing child pornography on May 19, 2014.
The indictment contains a forfeiture allegation, which would require Hajny to forfeit to the government any property used to commit the alleged offenses, including a laptop computer, two tablet computers two cell phones, an iPod and a digital camera.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and the Joplin, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."James Ortman of Maple Rapids Sentenced to Prison for Submitting False Claims to the Federal GovernmentRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick A. Miles, Jr., announced today that James Francis Ortman, 58, of Maple Rapids, Michigan, was sentenced in U.S. District Court to 24 months’ imprisonment for submitting false claims to the U.S. Department of Housing and Urban Development (HUD). As part of his sentence, Ortman was also ordered to pay restitution to HUD in the amount of $235,412.00. When imposing his sentence, the Hon. Janet T. Neff commented that “these kinds of crimes really are corrosive to our trust and our faith in our government.”
“When used appropriately, HUD grants encourage development and new job opportunities in our local communities,” said U.S. Attorney Miles. “This office will vigorously pursue those who seek to line their own pockets by diverting from their intended purpose scarce grant monies that are funded by the hard-working taxpayers of this district.”
Ortman’s false claims related to grants that were administered by the City of St. Johns and the Michigan State Housing Development Authority (MSHDA), and ultimately funded by HUD. Ortman received the grants to improve the facades of various buildings that he owned in downtown St. Johns and to construct apartments for income-qualified individuals. In order to receive the full amount of the grants, Ortman submitted false invoices and other documents making it appear as if he spent more money on the projects than he actually did. This allowed him to divert grant monies to his various business interests, instead of spending the money on the intended purposes of the grants.
Mr. Barry McLaughlin, Special Agent in Charge, HUD-OIG, stated that his agency has “redoubled our efforts at combatting fraud within grant programs intended to justly benefit the people of Michigan. Mr. Ortman’s sentencing signals the start of our initiative to reduce this growing crime.”
“Theft of HUD grant funding amounts to stealing from hard-working taxpayers,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “The FBI, in concert with our law enforcement partners, remains dedicated to pursuing those who selfishly misappropriate public funds intended for the public good.”
The Detroit office of the U.S. Department of Housing and Urban Development-Office of Inspector General, along with the Lansing office of the FBI, investigated the case. The prosecution of the case is being handled by Assistant U.S. Attorney Ronald M. Stella.
END
Independence Man Indicted for Producing Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was indicted by a federal grand jury today for using a minor victim to produce child pornography.
Morgan Littleton, 32, of Independence, was charged in a four-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Littleton used a minor, identified as Jane Doe, to produce child pornography on four separate occasions between Jan. 18 and March 25, 2013.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Teresa A. Moore. It was investigated by the Independence, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Hartford Man Pleads Guilty to Possessing Drugs, FirearmRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that KARL ROYE, also known as “Eagle,” 23, of Hartford, pleaded guilty today before Senior U.S. District Judge Alfred V. Covello in Hartford to one count of possession with intent to distribute cocaine base (“crack”), and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and statements made in court, on September 5, 2013, at approximately 10:22 p.m., the Hartford Police Department’s Shooting Task Force and the FBI’s Northern Connecticut Violent Crimes Task Force executed a state search warrant at ROYE’s Holcomb Street residence. As the search team approached the residence, ROYE drove from his house at a high rate of speed. Officers stopped ROYE at the end of the street and seized from him two cell phones and $640 in cash. A search of ROYE’s residence yielded approximately $2,000 in cash and a money counting machine that were found in ROYE’s bedroom. Searchers also found two backpacks that were hidden above a tiled ceiling in the basement. The backpacks revealed quantities of crack cocaine and marijuana packaged for distribution, two digital scales, drug packaging materials, and a .38 caliber Smith & Wesson, Model 60, revolver.
A firearms trace on the weapon established that it had been reported to the Hartford Police Department in November 2012 as having been stolen from the residence of its owner.
ROYE has been detained since his arrest on September 5, 2013.
Judge Covello scheduled sentencing for September 10, 2014, at which time ROYE faces a maximum term of imprisonment of 20 years for possessing with intent to distribute narcotics, and a consecutive sentence of at least five years of imprisonment for possessing a firearm in furtherance of that crime.
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The FBI task force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorney John H. Durham.
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[email protected]Fort Peck Man Sentenced for Glass Bottle StabbingsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, Montana, on June 6, 2014, before U.S. District Judge Brian M. Morris, DAVID V. CHASER, of the Fort Peck Reservation, was sentenced to a term of 54 months imprisonment, three years supervised release, and a special assessment of $200.
Chaser was charged with and pleaded to three counts of assault after hitting a man over the head with a glass bottle at a house, then taking its jagged remains and stabbing a woman in the face and neck with it. The injuries barely missed her jugular vein and an important artery, which could have led to massive blood loss or death. Chaser then ran to a nearby gas station where he reported to law enforcement that he had just stabbed someone.
The Court sentenced Chaser to 54 months of imprisonment, with three years of supervised release to follow. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Chaser will likely serve all of the time imposed by the court. In the federal system, Chaser does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
This investigation was conducted by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice.
Former Lafayette/Opelousas Housing Authority Director Sentenced to 28 Months in Prison for Bribery and Bid Corruption ConspiracyRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Walter O. Guillory, 51, of Lafayette, was sentenced by U.S. District Judge Elizabeth Foote, to 28 months in prison and one year of supervised release for receiving bribes while running two housing authorities in the Acadiana area and also for his part in a conspiracy to award bids to a preferred contractor in Opelousas.
According to evidence presented at the guilty plea on February 14, 2014, Guillory served as the Executive Director of the Lafayette Housing Authority (LHA) from June 1998 to October 2010, and he served as Executive Director of the Opelousas Housing Authority (OHA) from November 2005 to November 2010. During this time period, Guillory sponsored a local baseball team. He solicited donations from various vendors and contractors of both the LHA and the OHA for “his baseball team.” From 2006 to 2010, the vendors were expected to make yearly donations in exchange for doing business with the housing authorities. Some of the contributions were spent on personal expenses and not for the baseball team. He solicited and received more than $100,000 in bribes from the vendors between 2006 and 2010.
Guillory also admitted to conspiring with others to circumvent bid laws in order to award construction contracts to one company who performed construction work for OHA. They used the fake bids to make it appear that several companies were placing bids on construction projects, but in fact, there was only one company being considered. In addition, they used interstate wire communication facilities including email transmissions for a variety of purposes, which involved sending and receiving emails related to contracts and false bids. Guillory approved these contracts with full knowledge that the bid rules, laws and regulations were not being followed from 2007 to 2009.
The Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development conducted the investigation. Assistant U.S. Attorney Kelly P. Uebinger prosecuted the case.
Former Kansas Man Pleads Guilty to Federal Tax Evasion ChargeRead the Press Release
KANSAS CITY, KAN. – A Kansas man pleaded guilty Tuesday to a federal charge of tax evasion, U.S. Attorney Barry Grissom said.
Kent Price, 57, Kingwood, Texas, pleaded guilty to one count of tax evasion. In his plea he admitted the crimes took place while he and co-defendant Donald Doleshal, 62, Driftwood, Texas, lived in Kansas and were partners and owners of Central States Underwater Contracting, Inc., (CSU), Central States Underwater, Limited (CSUL) and Pilecap, Inc. The companies inspected, surveyed and repaired underwater pipelines, piles, piers, docks and bridges.
In tax years 2002, 2003, 2004 and 2005, Price understated his personal taxable income by a total of more than $340,000. The omission results in taxes due of $53,421.
Price also admitted CSU and Pilecap paid personal expenses for Price and Doleshal that were deducted as business expenses on corporate taxes returns and were not reported as personal income. CSU paid for a Corvette and Saab that were drive by Price and Doleshal’s respective spouses.
Price is set for sentencing Aug. 26. Doleshal pleaded guilty to one count of tax evasion. He is set for sentencing Aug. 19. In both cases, both parties have agreed to recommend a sentence of 36 months federal probation and full restitution of taxes owed.
Grissom commended the Internal Revenue Service and Assistant U.S. Attorney Chris Oakley for their work on the case.
Former Correctional Officers at Big Spring Correctional Center Plead Guilty to Federal ChargesRead the Press Release
Defendants on Duty When an Inmate Commits Suicide
ABILENE, Texas — Former Correctional Officers at Big Spring Correctional Center (BSCC), in Big Spring, Texas, have pleaded guilty to federal charges stemming from a Department of Justice (DOJ) Office of the Inspector General (OIG) investigation that was initiated when an inmate committed suicide in the facility two years ago while they were on duty, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Today, Frederick Hernandez, 45, of Big Spring, appeared before U.S. District Judge Sam R. Cummings and pleaded guilty to one count of making false statements and aiding and abetting. He faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. Last Friday, Christopher Moore, 42, of Dallas, pleaded guilty to one count of misprision of a felony. He faces a maximum statutory penalty of three years in federal prison and a $250,000 fine. Judge Cummings ordered a presentence investigation report for each defendant with a sentencing date to be set after the completion of those reports.
According to plea documents filed in the case, from August 22 - 23, 2012, Hernandez and Moore were assigned to the Flight Line Unit in the Special Housing Unit (SHU) at BSCC; Hernandez was the Officer in Charge. Part of their duties included making mandatory 30-minute safety checks of each cell and conducting six mandatory formal inmate counts during a 24-hour period, beginning at 12:01 a.m., 3:00 a.m., 5:00 a.m., 10:00 a.m., 4:00 p.m. and 10:00 p.m. Each Correctional Officer is further required to certify that the mandatory 30-minute safety check of each cell and the mandatory formal inmate counts were made.
An inmate housed in the Flight Line Unit committed suicide during the 8:00 p.m., to 8:00 a.m. shift on August 22 - 23, 2012, and was discovered during the morning feeding on August 23, 2012.
Hernandez admitted that he completed, signed and submitted to the Department of Justice, as required by law, the “SHU Control Log” forms indicating that formal counts of inmates had been performed from 12:01 a.m. to 5:10 a.m., on August 22 – 23, 2012. Hernandez further admitted he knew the logs were not correct and were false in that the formal counts of inmates were not conducted.
Moore admitted he knew Correctional Officers at BSCC submitted forms to the Department of Justice, as required by law, indicating that safety check rounds were conducted, when, in fact, he knew they had not been conducted. He further admitted that he concealed this fact and failed to advise an authority.
In related cases, two other defendants, James McKinnon, 22, and Jamie Navarette Salgado, 24, each pleaded guilty in September 2013; McKinnon pleaded guilty to one count of misprision of a felony and Salgado pleaded guilty to one count of making false statements and aiding and abetting. In December 2013, McKinnon was sentenced to six months in federal prison and ordered to pay a $500.00 fine. He is presently serving his prison time. McKinnon and Salgado also worked as Correctional Officers assigned to the Flight Line Unit in the SHU at BSCC. Salgado admitted making false entries on logs and falsely indicating he had conducted safety rounds. McKinnon admitted that he knew entries on the logs were incorrect and that he failed to advise an authority.
The Department of Justice Office of the Inspector General conducted the investigation. Assistant U.S. Attorney Paulina Jacobo is prosecuting.
Five Plead Guilty to Large-scale Meth Conspiracy in Southwest MissouriRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that five defendants pleaded guilty in federal court this week to charges related to a large-scale methamphetamine conspiracy.
Jerry Dean Wright, Jr., 38, and his wife, Shannon K. Wright, 36, both of Ozark, Mo., Perry L. Adams, 39, of Springfield, Mo., and Joseph A. Dreckmeier,32, of Gilbert, Ariz., pleaded guilty today in separate appearances before U.S. Magistrate Judge James C. England to the charges contained in a May 6, 2014, federal indictment. Co-defendant Salvador Campos, 32, of Los Angeles, Calif., pleaded guilty on Tuesday, June 10, 2014.
By pleading guilty, Jerry Wright, Adams, Dreckmeier and Campos each admitted that he participated in a conspiracy to distribute methamphetamine between Sept. 4, 2012, and June 5, 2013. They also each pleaded guilty to money laundering. Shannon Wright pleaded guilty to money laundering.
Jerry Wright was involved with a group in the southwest Missouri area that distributed large amounts of methamphetamine. He arranged for multi-pound shipments of methamphetamine to be shipped from Arizona and California to Missouri. Jerry Wright and other members of the conspiracy received the methamphetamine and distributed it in southwest Missouri.
Jerry and Shannon Wright, Adams, Dreckmeier and Campos are among nine co-defendants who have pleaded guilty in this case.
Drug-Trafficking Conspiracy
On April 11, 2013, officers with the Texas Department of Public Safety stopped a vehicle that was carrying approximately nine pounds of methamphetamine. A search of the car revealed that it was registered to Shannon Wright and the insurance was in the name of Jerry Wright. The methamphetamine was intended for delivery to Wright.
In June 2013, an investigation in the state of California led to the stop of several individuals in Missouri. Co-defendant Myrna Aguirre, 42, of Los Angeles, drove a Mercedes to Springfield containing approximately 10 pounds of pure methamphetamine. After delivering it to Springfield, Missouri, Campos and other co-defendants took possession of the Mercedes. They were attempting to deliver it to Jerry Wright, when they were stopped by law enforcement and the methamphetamine was found hidden in the vehicle. Aguirre has also pleaded guilty to her role in the conspiracy.
In October 2012, co-defendants Robert Joseph Cantrell, 42, of Seymour, Mo., and Brandon Hinkley, 35, of Republic, Mo., drove to Arizona and met with Dreckmeier. Dreckmeier arranged for approximately 25 pounds of methamphetamine to be loaded into a rental vehicle, which Hinkley then drove back to Missouri and delivered to Jerry Wright. Cantrell and Hinkley have pleaded guilty to their roles in the conspiracy.
In addition to the 25-pound methamphetamine shipment arranged in October 2012, Jerry Wright arranged with Dreckmeier for at least three other multi-pound shipments of methamphetamine to be sent to Missouri in a VW Beetle that was equipped with a hidden compartment. These shipments were also being sent to Jerry Wright for distribution by him and other members of the conspiracy in southwest Missouri.
Shannon Wright and other members of the conspiracy distributed the methamphetamine in southwest Missouri. Shannon Wright also collected money for Jerry Wright, which had been paid for the distribution of methamphetamine.
During the conspiracy, Adams received small amounts of methamphetamine from Jerry and Shannon Wright and then sold it to others. On April 1, 2013, Adams was stopped by police and found to be in possession of 1/8 ounce of methamphetamine which he had received from Jerry Wright. Adams was also present when Jerry Wright removed a large amount of methamphetamine from a Chevrolet Avalanche in the spring of 2013, which is estimated to be between two to four pounds.
Money Laundering
On March 7, 2013, Adams and Jerry Wright brought $29,600 in cash to Springfield Imports car dealership in Springfield for the purchase of a 2012 Chevrolet Camaro. The money used to purchase the Camaro was derived from the distribution of methamphetamine and the transaction was designed to conceal that fact.
On April 7, 2013, Jerry Wright brought approximately $47,848 in cash to Midwest Auto Group Motors LLC for the purchase of a 2010 Dodge Challenger and a 2010 Chevrolet Camaro. The money used to purchase the Challenger and the Camaro was derived from Jerry Wrights’ distribution of methamphetamine.
On April 8, 2013, Dreckmeier brought $35,000 in cash to Reliable Chevrolet in Springfield for the purchase of a 2013 Chevrolet Camaro. Shannon Wright brought another $8,000 the following day. The transaction was conducted on behalf of Jerry Wright. The money used to purchase the Camaro was derived from the Wrights’ and Dreckmeier’s distribution of methamphetamine.
Forfeiture
Under the terms of today’s plea agreements, Jerry and Shannon Wright must forfeit to the government a 1998 Jaguar, two 2003 Harley Davidson motorcycles, a 2004 Chevrolet SSR, a 2005 Pontiac GTO, a 2006 Chrysler 300C, a 2007 Chevrolet Avalanche, a 2008 Chevrolet Avalanche, two 2010 Chevrolet Camaros, a 2010 Dodge Challenger and a 2012 Chevrolet Camaro, all of which were obtained from the proceeds of the methamphetamine trafficking.
Sentencing
Under federal statutes, Jerry Wright is subject to a mandatory minimum sentence of 20 years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $20 million.
Shannon Wright is subject to a sentence of up to 10 years in federal prison without parole, plus a fine up to $250,000.
Adams is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $10.5 million.
Dreckmeier is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $10,250,000.
Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Gary Milligan. It was investigated by the Springfield, Mo., Police Department, the U.S. Drug Enforcement Administration, IRS-Criminal Investigation, the Missouri State Highway Patrol, the Webster County, Mo., Sheriff’s Department and the Ozark, Mo., Police Department.Financial Advisor Indicted for Securities FraudRead the Press Release
Allegedly Altered Monthly Statements to Hide Investment Losses
Baltimore, Maryland - A federal grand jury has indicted Jagveer Singh, age 55, of Clarksville, Maryland, on charges of securities fraud. The indictment was returned yesterday and Singh was arrested today.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
Singh was an investment advisor who provided investment advice and services to clients in Maryland through two companies he owned, A&S Financial Services, Inc. and later, Synergia Capital Management, LLC. A&S provided financial planning, investment advice and tax services to affluent investors and small businesses. Synergia provided consulting and advisory services in the areas of financial planning, investment advice and business development and management. Both companies were located in Clarksville.
Singh has a Ph.D. in molecular biology, an MBA degree from The Johns Hopkins University, and worked as a licensed stockbroker from 2000 to 2002 at a large financial investment company.
According to the one count indictment, from January 2008 to June 2010, Singh altered a client’s monthly statements from an on-line brokerage firm that executes purchases and sales of securities, before providing those statements to the client, in order to conceal investment losses. Singh increased the market value shown on the monthly statement for numerous securities. In all, Singh altered over 24 monthly statements to hide between $224,747.34 and $53,186.76 in losses in any given month. In addition, during the time when Singh was altering his client’s monthly statements, the account suffered a total loss of about $310,310.70. During this time, Singh obtained $14,382.52 in commissions from the client.
The indictment seeks forfeiture of $324,693.22.
Singh faces a maximum sentence of 25 years in prison followed by three years of supervised release and a fine of $250,000. Singh is scheduled to have his initial appearance today at 3:30 p.m. in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.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 the U.S. Postal Inspection Service - Washington Division for its work in the investigation and thanked Assistant United States Attorney Leo J. Wise, who is prosecuting the case.
Federal Prison Inmate Sentenced for Mail Fraud Against Catholic ChurchRead the Press Release
Claims of Child Sex Abuse Fabricated for MoneyPortland, Ore.—Shamont Lyle Sapp, 50, was sentenced today by United States District Judge Anna J. Brown to 33 months in prison for mail fraud in an unsuccessful scheme to obtain money from four Roman Catholic dioceses through fictitious claims of child sex abuse by priests. A former Pennsylvania resident, Sapp pleaded guilty to pursuing fabricated cases against dioceses in Portland, Oregon; Tucson, Arizona; Covington, Kentucky; and Spokane, Washington, from 2005 through 2010. He filed the fraudulent claims in pending bankruptcy and class action cases while he was a federal prison inmate serving lengthy sentences for ten Pennsylvania bank robberies he committed in 1995.
Each of Sapp’s claims falsely alleged that he had been sexually abused as a teenage runaway in 1978-79. Sapp’s allegations required extensive investigative and legal work by courts, special masters, and the four dioceses before being disproved and dismissed as groundless. The longest case occurred in U.S. District Court in Portland in 2008-2010. It directly incurred $70,000 in legal expenses by the Archdiocese of Portland, which Sapp must pay as restitution as part of his criminal sentence.
This is the second mail fraud case in Portland involving fictitious claims of child sex abuse against a former Portland priest. In 2005, Thomas Edward Smolka received a three-year federal sentence for concocting a similar scheme.
“Fraudulent claims in court, especially by prison inmates, are a serious drain on public and private resources and deserve significant penalties,” United States Attorney Amanda Marshall said. “This is particularly true of fictitious sex abuse cases, which injure the falsely accused and hurt real abuse victims, who frequently remain silent, thinking no one will believe them.”
The nationwide investigation of Sapp was conducted by the U.S. Postal Inspection Service. The case was prosecuted by Assistant United States Attorney Stephen F. Peifer.
Federal Firearm Charge Filed Against Murder SuspectRead the Press Release
KANSAS CITY, KAN. – A federal grand jury Wednesday returned an indictment charging a defendant in a state murder case with a federal firearms violation, U.S. Attorney Barry Grissom said.
Luis M. Murillo-Rosales, 25, who has been living in Kansas City, Kan., is charged with one count of unlawful possession of a firearm by a foreign citizen who is in the United States illegally. In court records it is alleged that on May 25, 2014, the Kansas City, Mo., Police Department responded to a report of a shooting in the 1600 block north of Universal Avenue in Kansas City, Mo. They found a deceased victim and recovered a spent 9 mm shell casing near the body. Witnesses reported seeing a man point a gun at the victim, fire one shot and then flee the scene.
Investigators served a search warrant at Murillo-Rosales’ home in the 1200 block of Ridge Avenue in Kansas City, Kan. They recovered a 9 mm handgun that allegedly was used in the shooting.
Murillo-Rosales was charged in state court in Jackson County, Mo., in connection with the shooting.
If convicted on the federal firearm charge, Murillo-Rosales faces a maximum penalty of 10 years in federal prison and a fine up to $250,000.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kansas City, Mo., Police Department investigated. Assistant U.S. Attorney Tris Hunt is prosecuting.
OTHER INDICTMENTS
John Hernandez, 40, Los Angeles, Calif., is charged in a superseding indictment with one count of conspiracy and eight counts of distributing various amounts of methamphetamine. The crimes are alleged to have occurred between Dec. 5, 2013, and May 13, 2014, in Lawrence, Kan.
If convicted, he faces a penalty of not less than 10 years and a fine up to $10 million on the conspiracy count and some of the distribution counts. Sentences on other distribution counts range from not less than five years to not more than 20 years.
The Kansas Bureau of Investigation investigated. Assistant U.S. Attorney Sheri McCracken is prosecuting.
Jeremy Guy, 32, Sugar Creek, Mo., is charged with escaping from federal custody at the Grossman Community Corrections Center in Leavenworth, Kan. The crime is alleged to have occurred May 27, 2014.
If convicted, he faces a maximum penalty of five years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Tris Hunt is prosecuting.
Martin Salgado-Salgado, 39, a citizen of Mexico, is charged with one count of using false documents, four counts of aggravated identity theft, one count of making a false statement on a U.S. passport application, one count of misusing a U.S. passport and one count of making a false claim of U.S. citizenship. The crimes are alleged to have occurred in 2008, 2010, 2012 and 2014 in Sedgwick County, Kan.
Upon conviction, the crimes carry the following penalties:
Using false documents: A maximum penalty of 15 years in federal prison and a fine up to $250,000.
Aggravated identity theft: A mandatory consecutive two-year sentence on each count.
Making a false statement on a passport application: A maximum penalty of 10 years and a fine up to $250,000.
Misusing a U.S. passport: A maximum penalty of 10 years and a fine up to $250,000.
Making a false claim of U.S. citizenship: A maximum penalty of three years and a fine up to $250,000.The U.S. Department of State investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.Ex-Wife Sentenced to Five Years in Prison for Distributing Child PornographyRead the Press Release
Ex-Husband Previously Sentenced to Over 24 Years for Producing Child Pornography and Attempting to Entice a Minor to Have Sex
Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Lori Fisher, age 46, formerly of Bel Air, Maryland, today to five years in prison followed by five years of supervised release for distributing child pornography. Judge Bredar ordered that upon her release from prison, Fisher must register as a sex offender in the place where she resides, where she is an employee, and where she is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to her plea agreement and court documents, at the request of her then husband David Fisher, Lori Fisher took approximately 50 photos, a number of which were sexually explicit, of two minor females on at least two occasions between August and December of 2008. Lori Fisher took the photos with her cell phone and texted the images to David Fisher. The Fishers have subsequently divorced.
On November 4, 2012, the Baltimore Police Department received information that images and videos of child pornography were seen on David Fisher’s external hard drive at his residence. A search warrant was executed at David Fisher’s home on November 20, 2012, and computers, cell phones and other items were seized. The sexually explicit images of the victims were found on the computer and cell phone. In all, over 2,200 images and 100 videos of minors engaged in sex, including prepubescent minors, were recovered.
On March 14, 2013, an undercover police detective contacted David Fisher on Facebook posing as a 14 year old female. David Fisher subsequently communicated with the undercover detective through Facebook and email, often using a computer at a public library because his home computer was seized during the search of his residence in November 2012. David Fisher gave the undercover detective his cell phone number and proposed meeting to engage in sex. A meeting was arranged for April 11, 2013. David Fisher was arrested when he arrived at the meeting.
Judge. Bredar sentenced David Ralph Fisher, age 43, of Baltimore, on April 22, 2014 to 293 months in prison followed by lifetime supervised release for producing child pornography and attempting to entice a minor to engage in sex.This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.
Essex County, N.J. Contractor Admits Defrauding Bronx Home OwnerRead the Press Release
TRENTON N.J. - An Essex County, N.J. contractor who was paid nearly $100,000 to renovate the home of a Bronx, N.Y., woman, today admitted his role in defrauding her of the money in connection with the remodeling project, U.S. Attorney Paul J. Fishman announced today.
Raymond Norville, 45, of Orange, N.J., owner of RRL Unique Homes Inc., a construction company, pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to a superseding information charging him with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
In 2011, Norville was a contractor who owned RRL Unique Homes Inc. The victim, identified only as “C.P.,” wanted to renovate her newly purchased home in the Riverdale section of Bronx. Norville agreed to perform the renovations on the residence for $250,000. He submitted invoices to C.P., inducing her to pay him $98,600 in cash for the purchase of materials, supplies, architectural plans, rental equipment and permits needed for the project. Norville emailed pictures of materials that he intended to purchase. Norville neither delivered to the job site, nor provided proofs of purchase for the materials. By May 2011, work on the project had not started and C.P. demanded either a refund or the materials and supplies Norville promised to buy. Norville attempted to repay a portion of the $98,600 by providing C.P. with a check for $24,500, which was rejected for insufficient funds.
The count of conspiracy to commit wire fraud carries a maximum potential penalty of five years in prison and a fine of $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for Sept. 17, 2014.
U.S. Attorney Fishman credited special agents of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia for the New York Region; and detectives of the Waterfront Commission of New York Harbor, under the direction of Commissioner Jan Gilhooly, for the investigation leading to today’s guilty plea.The government is represented by Senior Litigation Counsel V. Grady O’Malley in Newark.
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Defense counsel: David P. Schroth Esq., TrentonNorville, Ray Information
Eight Individuals Sentenced in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Matthew Lyman, Public Affairs Specialist/Community Outreach CoordinatorELKINS, WEST VIRGINIA – Eight individuals appeared before Chief Judge John Preston Bailey for sentencing, according to United States Attorney William J. Ihlenfeld, II.
Ricky Lee TOWNSEND, age 53, of Coxs Mills, West Virginia, was sentenced to 100 months in prison and three years of supervised release for possession of materials used in the manufacture of methamphetamine. The Court ordered that TOWNSEND’s sentence run concurrent with the Gilmer County state sentence he is currently serving on drug-related charges; therefore, TOWNSEND was remanded to state custody. This case was investigated by the West Virginia State Police.
Barbara Ann SPIVA, age 48, of Elkins, was sentenced to 37 months in prison and three years of supervised release for maintaining a drug-involved premise in Randolph County for the purpose of manufacturing, storing, distributing and using methamphetamine. SPIVA was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was investigated by the Randolph County Sheriff’s Department and the West Virginia State Police.
The TOWNSEND and SPIVA cases were prosecuted by Assistant U.S. Attorney Stephen D. Warner.
Chad Frederick ARBOGAST, age 35, of Belington, West Virginia, was sentenced to 46 months in prison and three years of supervised release for the distribution of oxycodone on July 8, 2013. ARBOGAST who is free on bond, will self-report to the designated Federal institution on July 15, 2014.
Jonathan Scott HEALEY, age 30, of Elkins, was sentenced to 24 months in prison and one year of supervised release for the use of a communication device to facilitate a drug felony. The Court ordered that HEALEY’s sentence run consecutive to a state sentence he is currently servicing for 3rd degree shoplifting, and therefore, HEALEY was remanded to state custody.
Keith Allen POTEETE, age 48, of Elkins, was sentenced to 24 months in prison and four years of supervised release for the distribution of buprenorphine within 1,000 feet of the Davis
Street Park Playground. POTEETE, who is free on bond, will self-report to the designated Federal institution on July 15, 2014.
Charles Jacob FREEMAN, age 26, of Beverly, West Virginia, was sentenced to 12 months and 1 day in prison and four years of supervised release for the distribution of alprazolam within 1,000 feet of the Beverly Manor. FREEMAN, who is free on bond, will self-report to the designated Federal institution on July 15, 2014.Kenneth Franklin PUDDER, age 32, of Elkins, was sentenced to three years of probation for maintaining a drug-involved premise for the purpose of unlawfully storing and distributing buprenorphine.
These cases were prosecuted by Assistant U.S. Attorneys Shawn A. Morgan and Stephen D. Warner and were the result of the work of the Mountain Region Drug and Violent Crime Task Force, consisting of officers from the West Virginia State Police-Bureau of Criminal Investigations, U.S. Forest Service, Randolph County Sheriff’s Department, Tucker County Sheriff’s Department and the DEA, assisted by the DEA Tactical Diversion Squad.
Ronald SNYDER, age 39, of Buckhannon, West Virginia, was sentenced to 24 months in prison and five years of supervised release for failure to update his sex offender registration. The Court ordered that SNYDER’s sentence be served consecutively with the state sentence he is currently serving for the delivery of marijuana, and therefore SNYDER was remanded to state custody. This case was prosecuted by Assistant U.S. Attorney Morgan and investigated by the United States Marshals Service and the West Virginia State Police.
Department of Navy Employee Pleads Guilty to Stealing over $22,000 from United States NavyRead the Press Release
Memphis, TN – Donna L. Brown, age 45, of Millington, Tennessee, pleaded guilty yesterday to a criminal information charging her with theft of government funds in violation of 18 U.S.C. § 641, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.
According to the criminal information and statements made in court, Brown was an employee of the United States Department of Navy assigned to the Navy Personnel Command Onboard Naval Support Activity Mid-South in Millington, Tennessee. Her primary duties included coordinating travel and processing travel reimbursement claims for Navy families of deceased active duty sailors.
Between June 2012 and March 2013, Brown filed approximately 19 false claims for travel reimbursement with the United States Navy using the personal identifying information (such as Social Security numbers) of family members of deceased Navy sailors. She then deposited the money that she received from these false claims into banking accounts controlled by her and her family members. The Navy’s investigation revealed that Brown unlawfully collected $22,500.19 from the Navy as a result of the false claims that she filed.
Brown faces a maximum penalty of 10 years imprisonment, a $250,000 fine, and three years supervised release. Sentencing is scheduled for September 11, 2014 at 9:00 a.m. before United States District Judge Sheryl H. Lipman.
This case was investigated by the United States Naval Criminal Investigative Service. The case is being prosecuted by Assistant United States Attorney Leetra J. Harris on behalf of the government.Carlisle Resident Charged Federally with Child ExploitationRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today the indictment of Zackary Adam Knight for child exploitation offenses. Knight, 19, of Carlisle, was charged in four separate counts in the indictment handed up by the Grand Jury in Harrisburg.
According to United States Attorney Peter Smith, Knight is charged with aggravated sexual abuse of a minor; production of child pornography; distribution of child pornography; and possession of child pornography. The charges stem from an investigation by U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) inter-agency child exploitation task force, with assistance from the U.S. Army Criminal Investigation Division.
The Indictment alleges the crimes were committed at the U.S. Army War College which is within the jurisdiction of the United States.
Knight was taken into custody by HSI special agents on May 9, 2014. At the time, Knight was a resident of a housing area at the War College. After a detention hearing in Harrisburg, Chief United States Federal Magistrate Judge Martin C. Carlson ordered that Knight be detained pending further proceedings.
If convicted of all offenses, Knight faces a maximum possible sentence of life in prison and fines up to $1,000,000.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute of life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
The case is being prosecuted by Assistant United States Attorney James T. Clancy.
Carbondale Man Sentenced on Heroin OffenseRead the Press Release
Follow @SDILNewsOn June 11, 2014, Michael Burns, 45, of Carbondale, Illinois, was sentenced in U.S. District Court for a heroin offense, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Burns, who had previously pled guilty to a one-count indictment charging conspiracy to distribute heroin, was sentenced to 188 months in federal prison, 3 years of supervised release following prison, and fined $400. Evidence at the plea and sentencing hearings established that, between August 2012, and August 23, 2013, Burns was involved with others in the distribution of heroin in Carbondale, Jackson County. On multiple occasions between November 2012 and August 2013, Burns sold heroin to confidential sources working for law enforcement. When agents executed a search warrant at Burns’ Carbondale residence, they located heroin, cannabis, drug packaging materials, and a large amount of United States currency. At sentencing, the district court found that Burns was responsible for the distribution of 1.1 kilograms of heroin. Burns was classified as a Career Offender.
The investigation was conducted by the Southern Illinois Enforcement Group and the Drug Enforcement Administration. The Illinois State Police Tactical Response Team also assisted during the investigation.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Boise Woman Pleads Guilty to Controlled Substance DeliveryRead the Press Release
BOISE – Joann Ruszkowski, 43, of Meridian, Idaho, pleaded guilty today to one count of distributing a controlled substance, U.S. Attorney Wendy J. Olson announced. Sentencing is set before U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise on September 3, 2014.
According to the plea agreement, on June 11, 2012, Ruszkowski knowingly and intentionally distributed to an undercover police officer, 25 pills of 30 mg oxycodone, a Schedule II narcotic and controlled substance, in exchange for $500 in payment. She had obtained the controlled substances by prescription from a provider.
This investigation was initiated by the Meridian Police Department and investigated by the Drug Enforcement Administration (DEA) led Tactical Diversion Squad which is comprised of law enforcement personnel from the DEA, Ada County Sheriff’s Office, Boise Police Department, Idaho State Police, Meridian Police Department, Nampa Police Department and U.S. Department of Health and Human Services Office of Inspector General.
Bedford Man Charged with Distribution and Possession of Child PornographyRead the Press Release
JOHNSTOWN, Pa. – A resident of Bedford, Pa., was indicted on June 3, 2014, by a federal grand jury in Johnstown on charges of distribution and possession of child pornography, United States Attorney David J. Hickton announced today.
The two-count indictment named Wade C. Baer, 30, as the sole defendant.
According to the indictment presented to the court, on Feb. 19, 2013, Baer distributed a picture via the Internet which depicted a minor engaging in sexually explicit conduct, and on March 7, 2013, he knowingly possessed pictures and videos in individual computer graphic files which were produced using prepubescent minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
The law provides for a maximum total sentence of 40 years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Southwest Computer Crime Task Force of the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who sexually exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Advisory Committee on American Indian and Alaska Native Children Exposed to Violence Holds Final Public HearingRead the Press Release
The Advisory Committee of the Attorney General’s Task Force on American Indian and Alaska Native Children Exposed to Violence convenes its final public hearing in Anchorage, Alaska, today and tomorrow. The hearing will examine the wide-ranging impact of violence on children in Alaska Native communities and consider programs to effectively support these children and promote healing.
"I am honored to be here in Alaska to have the opportunity to meet leaders and representatives of Alaska's Native villages here today," said Associate Attorney General Tony West. "Despite heroic efforts on the part of law enforcement officers and service providers, the safety and welfare of Alaska Native people are precarious at best. And the ones who are at greatest risk - and who suffer the most - are their children. At the Department of Justice, we believe we have a role in changing the present circumstances - and the future prospects - of native youth."
This public hearing will gather expert testimony from Alaska Native leaders and tribal judges through panel discussions on the prevalence of violence, recommendations in the Indian Law and Order Commission Report specific to Alaska Native youth and the impact of the court system on these youth. Additional panels will discuss specific ways Alaska Native children are affected by violence in their homes and communities and consider recommendations to improve how these children are identified, assessed and treated.
The Attorney General’s Task Force on American Indian and Alaska Native Children Exposed to Violence is composed of a federal working group that includes U.S. Attorneys and officials from the Interior and Justice Departments and a federal advisory committee of experts on American Indian studies, child health and trauma, victim services and child welfare. Former U.S. Senator Byron Dorgan and Iroquois composer and singer Joanne Shenandoah co-chair the 13-member committee.
The advisory committee will draw upon research and information gathered through this hearing and three previous public hearings to draft a final report of policy recommendations to present to Attorney General Eric Holder by late 2014. Previous hearings addressed domestic and community violence in Indian Country; the pathway from victimization to the juvenile justice system; the roles of juvenile courts, detention facilities and the child welfare system; gang violence; and child sex trafficking. The first public hearing was held Dec. 9, 2013, in Bismarck, North Dakota, the second Feb. 11, 2014, in the Salt River Pima-Maricopa Indian Community in Scottsdale, Arizona, and the third April 16-17, 2014, in Fort Lauderdale, Florida.
Attorney General Holder created the task force in 2013 as part of his Defending Childhood initiative to prevent and reduce children’s exposure to violence as victims and witnesses. The task force is also a component of the Justice Department’s ongoing collaboration with leaders in American Indian and Alaska Native communities to improve public safety. For more information about the advisory committee and public hearings, please visit www.justice.gov/defendingchildhood .
Activity for June 3 - 4, 2014Read the Press Release
Wyoming’s Wind River SORNA completed Operation Jessica
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced today that last week, on June 3, and June 4, 2014, on the Wind River Indian Reservation, the Wind River Sex Offender Registration Office, in conjunction with the U.S. Marshal’s Service and the Bureau of Indian Affairs, completed Operation Jessica. The Wind River Sex Offender Registration and Notification Code "WRSORNC" requires all qualifying sex offenders who work, attend school, or reside within the exterior boundaries of the Wind River Reservation, or visit the reservation for a period of 24 hours or more, to register with the Wind River SORNA Office. Every sex offender required to register with the Wind River SORNA was located during Operation Jessica and his/her address verified. Several non-compliant sex offenders were located. Sex offenders who are not properly registered or are otherwise non-compliant are prosecuted in the Shoshone and Arapaho Tribal Court or in the United States District Court.
Tuesday 10 June 2014
Wichita Falls Man Sentenced to 151 Months in Federal Prison for Role in Major Methamphetamine Distribution ConspiracyRead the Press Release
Defendant is the Last of 39 Convicted in Case to be Sentenced
WICHITA FALLS, Texas— A Wichita Falls, Texas, man, Stuart Ray Mitchell, 40, who pleaded guilty in January 2014 to one count of conspiring to possess with intent to distribute and to distribute methamphetamine, was sentenced yesterday by U.S. District Judge Reed C. O’Connor to 151 months in federal prison. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Mitchell admitted that on multiple occasions between November 2011 and August 2012, he distributed quantities of methamphetamine, and received payments for it, from customers in the Wichita Falls area. Mitchell’s sources of methamphetamine included co-conspirator Steve Ysasaga, who supplied Mitchell quantities of at least one ounce of methamphetamine at a time. Mitchell distributed quantities of methamphetamine to various individuals in Wichita Falls, and he made payment for the methamphetamine he received from Ysasaga to both Ysasaga and co-defendant Kimberly Williams. Mitchell admits he possessed with intent to distribute at least 50 grams of methamphetamine during the conspiracy.
Ysasaga, 41, of Arlington, Texas, was sentenced in late February 2014 to 240 months in federal prison. Kimberly Williams, 27, was sentenced to 72 months in federal prison in July 2013.
With Mitchell’s sentencing yesterday, all 39 defendants charged in this conspiracy have entered guilty pleas and have been sentenced. Federal prison sentences have ranged from 24 months to 300 months.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Texas Department of Public Safety and the Wichita Falls Police Department investigated this Organized Crime and Drug Enforcement Task Force (OCDETF) case. Assistant U.S. Attorney Mary F. Walters prosecuted.
Wichita Falls Man Sentenced to 110 Months for Possessing Methamphetamine He Intended to DistributeRead the Press Release
WICHITA FALLS, Texas— Leonardo L. Sanchez, of Wichita Falls, Texas, was sentenced yesterday by U.S. District Judge Reed C. O’Connor to 110 months in federal prison, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Sanchez, 37, has been in custody since his arrest in June 2013 on a related federal criminal complaint.
According to plea documents filed in the case, on October 25, 2012, when officers with the Wichita Falls Police Department executed a narcotics search warrant at his home, officers found two semi-automatic pistols in a safe. In Sanchez’s truck, officers located a tube of caulk that contained two small plastic bags containing additional small plastic bags of methamphetamine. Sanchez admitted he possessed this methamphetamine and intended to distribute it later.
The Texas Department of Public Safety, the Wichita Falls Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated; Assistant U.S. Attorney Mary F. Walters prosecuted.
Weight Loss Clinic and Doctor Pay $250,000 to Settle Controlled Substance Act ClaimsRead the Press Release
SACRAMENTO, Calif. — United States Attorney Benjamin B. Wagner announced today the successful resolution of a civil prosecution alleging violations of the Controlled Substances Act (CSA) against Ronnie E. Stone, aka Ron Stone, and Ron Stone M.D. Medical Weight Management Inc. Dr. Stone paid the United States $250,000 to settle the federal claims.
Dr. Stone was the owner and operator of two Sacramento area weight loss clinics. The United States alleged that on various occasions from January 2010 to July 2012, Dr. Stone (1) distributed controlled substances to patients without first performing a physical examination and adequate medical screening of those patients; (2) distributed controlled substances to patients in re-sealable plastic baggies that did not satisfy CSA labeling, packaging and sealing requirements; and (3) failed to properly maintain records and perform required drug inventories. In resolving this case, Dr. Stone admitted the United States’ allegations.
Dr. Stone surrendered the clinics’ DEA Registrations in June 2012. Dr. Stone no longer practices medicine, and he no longer operates the clinics.
United States Attorney Wagner stated: “Physicians are responsible for ensuring that controlled substances are properly prescribed to their patients The practices at the Stone clinics put patients and other potential end-users at risk. The successful resolution of this matter demonstrates the DEA’s and my office’s commitment to enforcing the CSA and protecting the patient community.”
DEA Special Agent in Charge Jay Fitzpatrick stated: “Doctors are entrusted with protecting public health and those who dispense controlled substances without regard put the safety of the community at risk. The DEA will seek appropriate civil remedies when this trust is broken. Today’s settlement holds Mr. Stone responsible for failing to act appropriately.”
Assistant United States Attorney Kurt A. Didier prosecuted the case.
Virginia Businessman Pleads Guilty to Employment Tax Fraud and Theft from Employee Benefit PlanRead the Press Release
William P. Danielczyk Jr., formerly of Oakton, Virginia, pleaded guilty to one count of willful failure to collect and pay over employment taxes for the quarter ending Sept. 30, 2010, and one count of theft or embezzlement from an employee benefit plan for the calendar year 2010, the Department of Justice and Internal Revenue Service (IRS) announced today.
According to court documents, from March 2009 until December 2011, Danielczyk was the executive chairman of Innolog Holdings Corporation, a company that acquired Innovative Logistics Technology Inc. in March 2009. Innovative operated in the government services industry and provided technology-supported logistics services to the U.S. military and various defense organizations. The principal offices for Innovative and Innolog were located in McLean, Virginia, and later in Fairfax, Virginia.
For the third calendar quarter of 2009 through the last calendar quarter of 2011, Danielczyk was the person responsible for collecting, accounting for and paying appropriate payroll tax amounts to the IRS. Although payroll taxes were withheld from the wages of Innovative’s employees, Danielczyk failed to pay both the employee withholdings amounts and the employer’s matching portions to the IRS. The total tax loss for all quarters is $2,232,781.
According to court documents, Innovative employees were permitted to contribute to a qualified pension plan that was administered by an asset custodian, and pursuant to this plan, Innovative withheld participants’ elected contribution amounts from their regular paychecks. The total sum of employee withholdings was to be sent to the asset custodian on a bi-weekly basis. Although Danielczyk was the person responsible for authorizing payments to the asset custodian, he failed to send these payments. The total loss amount associated with this conduct, for 2009 through 2011, is $186,263.
Instead of paying Innovative’s employment taxes and remitting employee withholdings to the asset custodian of the company’s qualified pension plan, Danielczyk made purchases that included $505,871 for the use of a Washington, D.C., football stadium executive suite and $40,000 for the sponsorship of a horse race in Virginia.
Sentencing in this case has been set forSept. 11, 2014. For the employment tax charge, Danielczyk faces a statutory maximum sentence of five years in prison and a maximum fine of $250,000. Danielczyk faces a statutory maximum sentence of five years in prison and a fine of $250,000 for the theft from employee benefit plan charge.
The case was investigated by IRS-Criminal Investigation and the U.S. Department of Labor, Employee Benefits Security Administration, Philadelphia Regional Office. Trial Attorney Tracy L. Gostyla of the Tax Division and Assistant U.S. Attorney Mark D. Lytle for the Eastern District of Virginia are prosecuting the case.
Virginia Businessman Pleads Guilty to Employment Tax Fraud and Theft from Employee Benefit PlanRead the Press Release
WASHINGTON – William P. Danielczyk Jr., formerly of Oakton, Virginia, pleaded guilty to one count of willful failure to collect and pay over employment taxes for the quarter ending Sept. 30, 2010, and one count of theft or embezzlement from an employee benefit plan for the calendar year 2010, the Department of Justice and Internal Revenue Service (IRS) announced today.
According to court documents, from March 2009 until December 2011, Danielczyk was the executive chairman of Innolog Holdings Corporation, a company that acquired Innovative Logistics Technology Inc. in March 2009. Innovative operated in the government services industry and provided technology-supported logistics services to the U.S. military and various defense organizations. The principal offices for Innovative and Innolog were located in McLean, Virginia, and later in Fairfax, Virginia.
For the third calendar quarter of 2009 through the last calendar quarter of 2011, Danielczyk was the person responsible for collecting, accounting for and paying appropriate payroll tax amounts to the IRS. Although payroll taxes were withheld from the wages of Innovative’s employees, Danielczyk failed to pay both the employee withholdings amounts and the employer’s matching portions to the IRS. The total tax loss for all quarters is $2,232,781.
According to court documents, Innovative employees were permitted to contribute to a qualified pension plan that was administered by an asset custodian, and pursuant to this plan, Innovative withheld participants’ elected contribution amounts from their regular paychecks. The total sum of employee withholdings was to be sent to the asset custodian on a bi-weekly basis. Although Danielczyk was the person responsible for authorizing payments to the asset custodian, he failed to send these payments. The total loss amount associated with this conduct, for 2009 through 2011, is $186,263.
Instead of paying Innovative’s employment taxes and remitting employee withholdings to the asset custodian of the company’s qualified pension plan, Danielczyk made purchases that included $505,871 for the use of a Washington, D.C., football stadium executive suite and $40,000 for the sponsorship of a horse race in Virginia.
Sentencing in this case has been set forSept. 11, 2014. For the employment tax charge, Danielczyk faces a statutory maximum sentence of five years in prison and a maximum fine of $250,000. Danielczyk faces a statutory maximum sentence of five years in prison and a fine of $250,000 for the theft from employee benefit plan charge.
The case was investigated by IRS-Criminal Investigation and the U.S. Department of Labor, Employee Benefits Security Administration, Philadelphia Regional Office. Trial Attorney Tracy L. Gostyla of the Tax Division and Assistant U.S. Attorney Mark D. Lytle for the Eastern District of Virginia are prosecuting the case.
Virginia Beach Concert Promoter Pleads Guilty in Fraud SchemeRead the Press Release
RICHMOND, Va. – Kensey Lamonte Wright, 42, of Virginia Beach, Virginia, pleaded guilty today to wire fraud.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Joseph D. Morrison, Assistant Special Agent in Charge of the United States Secret Service’s Richmond Field Office, made the announcement after the plea was accepted by Magistrate Judge David J. Novak.
Wright was indicted on May 6, 2014, by a federal grand jury on a superseding indictment charging eight counts of wire fraud. He faces a maximum penalty of 20 years’ imprisonment, full restitution, and a fine of $250,000 when he is sentenced on September 9, 2014, by Senior United States District Judge James R. Spencer.According to the statement of facts filed with the plea agreement, between January 2007 and December 2013, Wright acted as a representative of Fifth Degree Tours #1, Inc., Fifth Degree Records, Inc., and Turnwright Enterprises, Inc. In that capacity, Wright solicited investors in Virginia and elsewhere to invest in concerts, tours, and similar entertainment events to be held at various locations throughout the United States. Wright represented to investors that the investment funds would be used to produce, promote, or otherwise administer proposed entertainment events, to include events featuring the artists Prince, Beyoncé, Jay Z, R Kelly, and TLC. To solicit investments, Wright promised returns as high as 100% within time periods as short as two weeks to two months. Wright admitted that he knowingly and intentionally misrepresented to investors that their funds would be used to produce or promote the proposed entertainment events, and that he used the vast majority of the funds for his own personal use and benefit, including for gambling and other expenses at various casinos.
As a result of Wright’s ongoing scheme to defraud, investors lost between $750,000 and $1,000,000. The final loss amount will be determined at sentencing and Wright will be ordered to pay that same amount to investors for restitution.
This case was investigated by the United States Secret Service. Assistant United States Attorneys Dominick S. Gerace and Michael Gill are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Video Poker Operator IndictedRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ----- Larry Flynn, a/k/a “L.W.,” age 39, of Richland County, South Carolina was charged by a Federal Grand Jury in a 2-count Indictment. Larry Flynn was charged with Operation of an Illegal Gambling Business, a violation of Title 18, U. S. C. §1955 and Conspiracy to Commit Money Laundering, a violation of Title 18, U. S. C. §1956(h) for his operation of the gambling business “Magic Minutes.” The maximum penalty Flynn could receive is 10 years imprisonment and a maximum fine of $250,000. The case is a part of an on-going investigation by agents of the IRS Criminal Investigations, FBI, Homeland Security, SLED and the South Carolina Attorney General’s Office and is assigned to Assistant United States Attorneys Jim May and Jay Richardson of the Columbia office for prosecution.#####
United States Attorney Announces Sentence of Carmel Man for Tax EvasionRead the Press Release
Local man underreported taxes for years resulting in over $500,000 in back taxes owed to the government
INDIANAPOLIS – Joseph H. Hogsett, United States Attorney, announced the conviction and sentencing of a Carmel businessman by U.S. District Judge Jane Magnus-Stinson for his role in a scheme to avoid paying income taxes. Joseph C. Scott, 54, Carmel was sentenced to 6 months in a residential community center for tax evasion.
“This type of fraud affects all Hoosiers. Those who cheat the system cheat their neighbors of taxpayer dollars that could be used to positively impact the community,” Hogsett said.
Scott, a CPA, was the sole owner of JS&A, Inc., located in Indianapolis. In 2001, Scott formed a partnership with KSM Business Services, also of Indianapolis. The new partnership was called KSM Profit Advisors, LLC and was run out of Indianapolis. The partnership provided that Scott’s role, via JS&A was to provide consulting services to all clients and run the business. The business agreement stated that Scott’s company, JS&A, would receive the greatest portion of the fees in return for his role in providing services. From 2005 to 2009, Scott failed to prepare federal tax returns for his company, JS&A.
Because of his failure to file tax returns, Scott was able to manipulate and underreport a substantial portion of his income to avoid paying taxes. During the years he failed to file returns for JS&A, Scott withheld nearly $2 million in income, which resulted in nearly $600,000 in taxes owed for those years.
“Our system is based on trust – not only the trust people have for their government but the trust government has in its citizens,” said Hogsett. “When people violate that trust, it is our job to prosecute them to the full extent of the law.”
Underreporting income is one of the most prevalent ways taxpayers attempt to cheat the system. In this case, Scott was convicted of willfully defrauding the federal government by underreporting his income and using his education and training to funnel his income through a corporation he set up without reporting it to the Internal Revenue Service.
Sharon M. Jackson who prosecuted the case for the government said Scott must serve three years of supervised released, one of which is on electronic monitoring, after completing his sentence.
U.S. Attorney's Office to Co-Host CLE Program Celebrating 50Th Anniversary of Title VIIRead the Press Release
Memphis, TN – In commemoration of the 50th anniversary of the passage of Title VII of the 1964 Civil Rights Act, a Continuing Legal Education program entitled, “Remaking America: 50 Years of Title VII of the Civil Rights Act” will be held at the University of Memphis Cecil Humphreys School of Law on Friday, June 13, 2014, from 11 a.m. until 5:00 p.m., announced U.S. Attorney Edward L. Stanton III.
The program, hosted by the United States Attorney’s Office, the Equal Employment Opportunity Commission, the Cecil Humphreys School of Law and the National Bar Association, will feature Paulette Brown, President-Elect of the American Bar Association (ABA) as the luncheon speaker and panelist. Ms. Brown is an attorney with Edwards Wildman in Morristown, N.J. If elected, she will be the first woman of color to lead the ABA. Also in attendance will be P. David Lopez, General Counsel of the Equal Employment Opportunity Commission, Washington, D.C. Other panelists will include federal district judges William J. Haynes, Jr., Brian S. Miller and S. Thomas Anderson, and Tennessee attorneys Donald Donati, Michael Cody, Waverly Crenshaw and Walter Bailey. Attorneys attending the program can receive 4.5 hours of CLE.
As late as the 1960s, it was not uncommon in America to see classified advertisements that openly stated, “White Only,” “Men Only,” “Negroes need not apply,” “No Irish,” “No Jews,” and other equally discriminatory statements. Blacks, women, religious and other minorities were often relegated to the lowest paying and most undesirable jobs.
On July 2, 1964, President Johnson signed Title VII into law. It prohibits discrimination in employment decisions “because of an individual’s race, color, religion, sex, or national origin.” The bill created the Equal Employment Opportunity Commission.
“America has come a long way since the days of the ‘No Colored’ and ‘No Women’ want-ads. While impermissible discrimination still exists, it does not exist in the open and notorious way that it did prior to 1964. African Americans, women and other minorities have made great strides in obtaining employment opportunities once thought unimaginable,” said U.S. Attorney Stanton. “Title VII’s role in opening opportunities for all of America’s citizens cannot be overstated.”
For information about attending this event, contact Brenda Webber at 901-544-0122.Two Members of Largest Counterfeit Goods Conspiracy Ever Charged Admit GuiltRead the Press Release
NEWARK, N.J. – Two members of a massive, international counterfeit goods conspiracy today admitted their roles in the scheme, U.S. Attorney Paul J. Fishman announced.
Ke Dao Jiang, 37, of Queens, and Wu Lin, 31, of Maspeth, N.Y., each pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging them with one count of conspiracy to traffic in counterfeit goods.
According to documents filed in this case and statements made in Court:
From November 2009 through February 2012, the defendants and their conspirators ran one of the largest counterfeit goods smuggling and distribution conspiracies ever charged by the Department of Justice. The defendants and others conspired to import hundreds of containers of counterfeit goods – primarily handbags, and footwear, and perfume – from China into the United States in furtherance of the conspiracy. These goods, if legitimate, would have had a retail value of more than $300 million.
The counterfeit goods were manufactured in China and smuggled into the United States through containers fraudulently associated with legitimate importers, with false and fraudulent shipping paperwork playing a critical role in the smuggling scheme. Some of the conspirators created and managed the flow of false shipping paperwork between China and the United States, and supervised the importation of counterfeit goods, and others controlled the importation of the counterfeit goods into the United States.
Other conspirators managed the distribution of counterfeit goods once those goods arrived in the United States. After importation, the counterfeit goods were delivered to warehouses, and distributed throughout New York, New Jersey, and elsewhere. Certain conspirators paid large amounts of cash to undercover law enforcement officers to assist in the removal of counterfeit goods from the port.Some conspirators acted as wholesalers for the counterfeit goods, supplying retailers who sold counterfeit goods to customers in the United States. Other conspirators were money structurers, who arranged for cash to be wired to China in amounts small enough to avoid applicable financial reporting requirements, to evade detection of the smuggling scheme and related proceeds.
Both Jiang and Wu served as wholesalers and worked with other conspirators to distribute the counterfeit goods to small-scale retailers in New Jersey and New York.Law enforcement introduced several undercover special agents (collectively, the UCs) to the conspirators. The UCs purported to have unspecified “connections” at the port, which allowed the UCs to release containers that were on hold, and pass them through to the conspirators. The conspirators paid the UCs for these “services.” In total, during the course of this investigation, the conspirators provided the UCs more than $2 million.
The UCs recorded dozens of phone calls and in-person meetings with various conspirators. The investigation also utilized several court-authorized wiretaps of telephones and electronic communications.
The conspiracy to traffic in counterfeit goods count carries a maximum potential penalty of 10 years in prison and a fine of $2 million. Sentencing for Lin is scheduled for Oct. 6, 2014, and for Jiang, Oct. 7, 2014.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Andrew M. McLees, and special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to the guilty pleas.
The government is represented by Assistant U.S. Attorneys Andrew Pak and Zach Intrater of the Computer Hacking and Intellectual Property section of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark and Nicholas Grippo of the U.S. Attorney’s Office in Trenton.
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Defense counsel:
Jiang: Warren Sutnick Esq., Hackensack, N.J.
Lin: Wanda Akin Esq., NewarkJiang, Ke Dao Information
Lin, Wu InformationTwo Charged with Leading a Conspiracy to Defraud and Extort Spanish-Speaking Consumers Through Fraudulent Call CentersRead the Press Release
A grand jury in Miami, Florida, indicted two individuals and two corporations for allegedly operating call centers in Peru that lied to and threatened Spanish-speaking victims into paying fraudulent settlements.
Assistant Attorney General Stuart F. Delery of the Justice Department’s Civil Division, U.S. Attorney Wilfredo A. Ferrer of the Southern District of Florida and U.S. Postal Inspector in Charge Ronald Verrochio of the Miami Office made the announcement.
Maria Luzula, of Miami and Juan Alejandro Rodriguez Cuya, of Lima, Peru, were charged with conspiracy, mail and wire fraud and extortion. Two Miami-based corporate entities – Angeluz Florida Corporation and Angeluz Miami, LLC – were charged with the same offenses.
“The Department of Justice is committed to fighting consumer fraud,” said Assistant Attorney General Delery. “Threats, misrepresentations and other predatory tactics used to rip off consumers will not be tolerated.”
“Consumer fraud that targets a specific population is shameful,” said U.S. Attorney Ferrer. “In this case, the defendants are alleged to have targeted Spanish-speaking consumers and falsely threatened them with arrest, deportation, forfeiture of property or harm to their credit scores when the consumers refused to settle claims for products that were not delivered or ordered. Such tactics are intolerable. The U.S. Attorney’s Office is committed and stands united with the Department of Justice’s Civil Division, Consumer Protection Branch, to protect our consumers from fraud.”
“The U.S. Postal Inspection Service will continue to aggressively investigate and pursue those who threaten our citizens and defraud them of their hard earned money, no matter what country they are operating from,” said U.S. Postal Inspector in Charge Verrochio.
According to allegations in the indictment, the defendants’ employees in Peru, using Internet-based telephone calls, lied to Spanish-speaking victims in the U.S. about fines they owed and lawsuits that would be brought against the victims. Peruvian callers threatened the victims and falsely told each victim that he or she had wrongfully failed to receive a delivery of products. The callers went on to claim, again falsely, that the victims owed thousands of dollars in fines. In reality, the victims had never ordered these products and no attempts to deliver products to the victims had been made.
The indictment alleges that Luzula’s and Rodriguez Cuya’s employees claimed that the consumers could resolve the fines if they immediately paid a “settlement fee.” Consumers who contested these settlement fees were told that failure to pay could lead to arrest, deportation, forfeiture of property or harm to their credit scores. Although consumers typically objected that they did not order or refuse delivery of any products, thousands still agreed to pay the fees due to these threats. The indictment alleges that a phone room in Miami collected the fees.
Luzula and Rodriguez Cuya originally were charged by criminal complaint and arrested on Jan. 10, 2013. They have remained incarcerated since their arrests.
The charges in the indictment are only allegations, and the defendants are presumed innocent unless and until proven guilty.
Assistant Attorney General Delery commended the Postal Inspection Service for their investigative efforts and thanked the U.S. Attorney’s Office for the Southern District of Florida for their contributions to the case. The case is being prosecuted by Trial Attorney Phil Toomajian and Assistant Director Richard Goldberg with the Department of Justice’s Civil Division, Consumer Protection Branch.Three Kansans Indicted for Armed Robbery at Excelsior Springs BankRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that three Kansas City, Kan., residents were indicted by a federal grand jury today for the armed robbery of an Excelsior Springs, Mo., bank.
Virginia Lynn Spencer, 28, her brother, Charles Ralph Spencer, 24, and Steven Dale Robinson, 22, all of Kansas City, Kan., were charged in a two-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Virginia Spencer and Steven Robinson on May 27, 2014, and a federal criminal complaint that was filed against Charles Spencer on May 29, 2014. All three defendants remain detained in federal custody.
Virginia and Charles Spencer and Robinson are each charged in one count of aiding and abetting each other to steal $11,883 at gunpoint from Bank Midwest, 201 N. Jesse James Rd., Excelsior Springs, on May 23, 2014. Virginia and Charles Spencer are also charged together with one count of aiding and abetting each other to brandish a firearm during the robbery.
According to an affidavit filed in support of the original federal criminal complaint, Virginia and Charles Spencer entered the bank at about 5:30 p.m. Charles Spencer allegedly stood in the lobby and pointed a Rossi .32-caliber revolver in the air with his finger on the trigger. They ordered bank employees to sit on the floor, the affidavit says, then Virginia Spencer dove on top of the middle lobby teller counter and began opening the tellers drawers in search of money. Spencer pulled herself over the counter and went behind the teller counter, the affidavit says, before jumping back over the counter while holding a bag.
Both robbers ran from the bank, according to the affidavit, with Virginia Spencer saying, “Have a nice day” on her way out.
A bank customer, who had just conducted a transaction at the ATM with her three children in the vehicle, drove around toward the front of the bank to leave the parking lot. She saw Robinson sitting in the driver’s seat of a Grand Marquis that was backed in near the bank’s front doors at an angle, the affidavit says. The two robbers ran out of the bank’s front doors and got into the vehicle. The vehicle quickly left the Bank Midwest parking lot, narrowly missing the customer’s vehicle. She immediately called 911 on her cell phone and reported the vehicle’s direction of travel.
Clay County Sheriff’s deputies saw the vehicle near 69 Highway and Lightburn Road. A pursuit followed, and the robbers’ vehicle crashed near Kings Highway and Dam Road in Liberty, Mo. Virginia Spencer and Robinson were arrested at the scene and Charles Spencer was hospitalized as a result of the crash.
Law enforcement officers found a bag containing $11,883 on the front floorboard of the vehicle.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Justin G. Davids. It was investigated by the FBI, the Clay County, Mo., Sheriff’s Department and the Excelsior Springs, Mo., Police Department.Tax Preparer Pleads Guilty to Stealing More Than $228,000Read the Press Release
LAREDO, Texas – Michelle A. Morin has entered a plea of guilty to aiding and assisting in the preparation of false and fraudulent income tax returns, announced United States Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of IRS-Criminal Investigation (IRS-CI). Morin owned and operated Discount Tax Service, a Laredo-based tax preparation business, and has admitted to causing more than $228,000 in tax loss to the government.
Between tax years 2007 - 2010, Morin aided and assisted in the preparation of fraudulent returns by willfully placing false items on tax returns she prepared for clients knowing they were not entitled to claim them. Such claims included false Schedule A itemized deductions, false Schedule C business losses and false Form 5695 residential energy credits in addition to gifts to charity, job expenses and miscellaneous deductions. Morin also, in certain instances, improperly directed portions of taxpayer tax refunds into her personal bank account.
As part of her plea today, Morin admitted fraudulently claiming a false Schedule C loss in the amount of $83,184.00 for a non-existent online business on a on a taxpayer’s 2009 tax return. Morin also fraudulently reported $2,000 in residential energy credits that she knew the taxpayer was not entitled to claim. Subsequently, Morin improperly directed $2,000 of the false refund to her personal account.
U.S. Magistrate Judge Scott Hacker presided over the plea today. Sentencing will be set at a later date before U.S. District Judge George Kazen. At that time, Morin faces up to three years in federal prison and a possible $250,000 fine.
She was permitted to remain on bond pending that hearing.
This case was investigated by IRS-CI and is being prosecuted by Assistant United States Attorney Sanjeev Bhasker.
Tax Preparer and Evader Is SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England, announced that KENNETH ZITO, 51, of Wethersfield, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to three years of probation, the first 10 months of which ZITO must serve in home confinement, for evading the payment of taxes on more than $200,000 in income. ZITO also was ordered to pay a fine of $6,350 and to perform 300 hours of community service.
According to court documents and statements made in court, ZITO worked at Daniel Zito Financial Services, a South Windsor commercial financial services firm owned by ZITO’s father, where ZITO prepared tax returns for individuals and businesses. Although ZITO and his father worked together, they submitted client tax returns separately. Between 2007 and 2009, ZITO cashed checks he received from clients as payment for his services, but did not deposit the checks or declare them on his federal income tax return. As a result, ZITO did not report $219,759.32 in income during that three-year period, and failed to pay $59,621 in federal income tax.
Prior to his sentencing, ZITO paid $124,241 in back taxes, interest and penalties.
On March 18, 2014, ZITO pleaded guilty to one count of tax evasion.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney David J. Sheldon.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Stamford Man Sentenced to Federal Prison for Running Fraudulent Computer Networking Parts SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CRAIG A. STANLAND, 40, of Stamford, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 24 months of imprisonment, followed by three years of supervised release, for fraudulently obtaining hundreds of computer networking parts from Cisco Systems, Inc.
According to court documents and statements made in court, from October 2012 until he was arrested on October 1, 2013, STANLAND operated a service contract fraud scheme in which he purchased or controlled approximately 18 service contracts for Cisco networking parts. Pursuant to these service contracts, STANLAND – using the aliases “Alan Johnston” of Opex Solutions, “Kyle Booker” of KLB Networks, “Steve Jones” of SHO Networks, “Robert Johnson” of Adaptations, and “Paul Smith” of PS Solutions, among others – made hundreds of false service requests to Cisco to replace purportedly defective computer networking parts. Based on these requests, Cisco shipped replacement parts to various addresses at STANLAND’s direction, including to his home in Stamford, to his wife’s business in Brooklyn, N.Y., and to two post office boxes in Greenwich.
STANLAND sold the new parts to third parties to enrich himself. Although he was supposed to return the allegedly defective parts to Cisco, he either returned no parts at all or instead sent to Cisco third-party, off-brand parts.
Through this scheme, STANLAND fraudulently obtained nearly 600 parts from Cisco. The retail cost of the parts ranged from approximately $500 to $8,600, and the total loss to Cisco was approximately $834,307.
The investigation revealed that STANLAND spent some of the money he stole at various high-end restaurants in Fairfield County and New York.
STANLAND was ordered to make full restitution to Cisco.
On January 22, 2014, STANLAND waived his right to indictment and pleaded guilty to one count of mail fraud.
This case was investigated by the Federal Bureau of Investigation and the Greenwich Police Department. The case was prosecuted by Assistant U.S. Attorney David T. Huang.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]South Laredo Trafficking Group IndictedRead the Press Release
LAREDO, Texas – A total of 24 alleged members of a cocaine, crack and marijuana trafficking group have been arrested and charged with multiple violations of federal law, announced United States Attorney Kenneth Magidson along with Joseph M. Arabit, special agent in charge of the Drug Enforcement Administration (DEA). A 25th defendant was also taken into custody and charged by criminal complaint. The defendants are all residents of Laredo.
The indictment was returned under seal April 29, 2014, and unsealed upon the arrest of each defendant today. They are expected to make their initial appearances before U.S. Magistrate Judge Diana Song Quiroga tomorrow.
According to the indictment, the drug trafficking organization was allegedly responsible for distributing cocaine, crack and marijuana throughout the Laredo area, maintaining a drug premises and utilizing minors to distribute the narcotics. The indictment alleges the conspiracy spanned from January 2012 through April 2014.
“DEA and our federal, state and local law enforcement partners are working together to have a positive impact at the local level,” said Arabit. “Together, we are taking these drug dealers off the streets and depriving them of the opportunity to further engage in criminal activity which has adversely affected the quality of life in this region. We are sending a strong and unified message that drug dealing, at all levels, will not be tolerated, and, in turn, we are making our communities safer.”
Rafael Melendez aka “Chon,” 18, was charged in the criminal complaint with possession with intent to distribute cocaine.
Those charged in the indictment as part of the conspiracy and taken into custody today include:
Adan Melendez aka “12,” 38
Gerardo Melendez aka “Jerry,” 31
Rafael Andres Melendez aka “Lito,” 42
Mario Alberto Melendez, 34
Mario Alberto Gutierrez aka “Chito,” 38
Roberto Daniel Perez aka “Danny,” 36
Adan Melendez Jr. aka “Vivi,” 20
Jesus Rosendo Garcia-Melendez aka “Goldy,” 21
Juan Jose Melendez aka “Pelon,” 31
Maria Guadalupe Melendez aka “Wawi,” 39
Maria Del Rosario Melendez aka “Chayo,” 44
Manuel Hernandez aka “Lolo,” 19
Alejandro Reyes aka “Keiko,” 31
Rene Gabriel Gonzalez aka “Beast,” 46
Carlos Alberto Acosta aka “Pinni,” 36
Jorge Armando Perez, 34
Hertor Manuel Cavazos, 26
Pedro Omar Garza-Cadena, 31
Oscar Sanchez-Avila, 24
Arturo Garcia, 21
Luis Felipe Melendez aka “3,” 22
Julio Eduardo Almazan Jr., 22
Jose Juan Sosa, 19
Jesus Ramirez aka “Playboy,” 19The indictment remains sealed as to those charged but not as yet in custody.
If convicted of the conspiracy, they each face a minimum of five and up to 40 years in federal prison as well as a possible $5 million fine.
Adan Melendez and Hernandez are also charged with possession of a firearm in furtherance of a drug trafficking offense and face a potential sentence of up to life imprisonment, upon conviction.
The indictment also charges Adan Melendez, Rafael Andres Melendez and Roberto Perez with conspiracy to launder monetary instruments along with Mario Gutierrez and Sanchez-Avila who were also indicted for laundering monetary instruments. Each of those convictions carry a maximum 20-year sentence and a possible $500,000 fine.
Adan Melendez and Maria Guadalupe Melendez will further face a potential 20-year sentence and another $500,000 fine if convicted of maintaining a drug-involved premises.
The remaining counts charge multiple defendants with varying criminal violations, to include possession with intent to distribute cocaine, crack or marijuana, employment or use of persons under 18 years of age in drug operations and/or use of a communication facility in a controlled substance violation. Upon conviction, those charges carry varying terms of imprisonment, up to a maximum of 40 years in federal prison and fines up to $1 million.
The Organized Crime Drug Enforcement Task Force investigation was conducted by the Drug Enforcement Administration, Laredo Police Department, Webb County Sheriff’s Office and the Texas Department of Public Safety. Assistant United States Attorney José Angel Moreno is prosecuting.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Smith County Woman Guilty of Federal ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, TEXAS – A 44-year-old Whitehouse, Texas woman has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Kristi Isom pleaded guilty to conspiracy to commit mail fraud today before U.S. Magistrate Judge K. Nicole Mitchell.
According to information presented in court, in September 2011, Isom solicited an individual to intentionally set fire to and burn a residence on East FM 344 in Whitehouse, Texas. Isom admitted that she advised the individual of the general habits of the inhabitants of the home so that the individual could set the house on fire while it was unoccupied. After the residence was set on fire and burned, the owner of the residence filed a claim for insurance proceeds due to damage cause by the fire. Isom was listed as a co-owner on the insurance policy and admitted that she endorsed a check drawn on the account of “The Hartford Large Loss Organization” in the amount of $2,500. This check was one of several that were deposited, sent and delivered by mail. The total claim paid was $89,950. A federal grand jury returned an indictment on Dec. 18, 2013 charging Isom with federal violations.
Isom faces up to 20 years in federal prison at sentencing. A sentencing date has not been set.
This case is being investigated by the Texas Department of Public Safety, Criminal Investigation Division, the Smith County Sheriff’s Office, Smith County Fire Marshal, U.S. Postal Inspector’s Office and prosecuted by Assistant U.S. Attorney Jim Noble.
Sioux Falls Man Sentenced on Tax ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, man convicted of Willful Failure to Collect or Pay Over Tax from October 1, 2007, through December 31, 2007, was sentenced on June 9, 2014, by U.S. District Judge Karen E. Schreier.
Jared Adrian, age 46, was sentenced to 11 months of imprisonment, 1 year of supervised release, restitution in the amount of $357,542.70, and a $100 special assessment to the Federal Crime Victims Fund.
Adrian was indicted by a federal grand jury on December 3, 2013, for 15 counts of Willful Failure to Collect or Pay Over Tax, and 5 counts of Willful Failure to File Tax Return. On March 19, 2014, he pled guilty to one count of Willful Failure to Collect or Pay Over Tax.
“The sentence today should serve as a lesson to anyone thinking of evading their tax obligations,” said U.S. Attorney Brendan Johnson. “Not only will Jared Adrian have to pay everything he owes, plus penalties and interest, but now he’s a convicted felon serving a prison term.”
As part of his plea agreement, Adrian admitted that he owned and operated Jared Adrian Sod. Between April 2006 and April 2010, he avoided paying employment taxes by referring to his workers as “independent contractors” or “contract laborers” when in reality they were functioning as employees. This practice resulted in him willfully failing to account for and pay over employment taxes totaling more than $115,000. Also, Adrian admitted that for each year from 2005 to 2009, he failed to file personal income tax returns with the IRS, despite earning income. He admitted that he owes income taxes of $242,051, exclusive of penalties and interest.
“In today’s economic environment, it’s more important than ever that the American people feel confident that everyone is playing by the rules and paying the taxes they owe,” said Kelly R. Jackson, Internal Revenue Service (IRS) Criminal Investigation Special Agent in Charge. “Business owners, including Jared Adrian, have a responsibility to withhold income taxes for their employees and then remit those taxes to the IRS. This sentence should serve as a deterrent to those who might contemplate similar fraudulent actions.”
This case was investigated by the IRS. Assistant U.S. Attorneys Kevin Koliner and Ann Hoffman prosecuted the case.
Adrian is allowed to self-report to the U.S. Marshals Service no later than June 30, 2014.
Seven People from Knox and Adair Counties Indicted on Federal Methamphetamine ChargesRead the Press Release
St. Louis, MO –These seven people have been arrested on an indictment for their alleged participation in a methamphetamine conspiracy beginning as early as 2009 and continuing until 2013, in Knox and Adair Counties. They are expected to appear in federal court this week.
JONATHAN R. PREBE; JESSICA A. RUDD; and JERRY E. DAVIS, all of Edina, MO, were indicted on one felony count each of conspiracy to possess pseudoephedrine for the manufacture of methamphetamine and possession of pseudoephedrine for the manufacture of methamphetamine.
BILLY J. REARDON, Quincy, IL, SARAH S. BAKER, Brashear, MO, ASHLEY N. REARDON, Quincy, IL, and ANGEL RYAN, Woodstock, IL, were each indicted on one felony count of possession of pseudoephedrine for the manufacture of methamphetamine.
If convicted, each count of the indictment carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Missouri State Highway Patrol’s Division of Drug & Crime Control - Narcotics/Vice Unit and the Knox and Adair County Sheriff’s Offices. Assistant United States Attorney John Mantovani is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
SORNA Offender Sentenced to 48 Months in Federal PrisonRead the Press Release
WICHITA FALLS, Texas — Joseph Higgins, 35, most recently of Wichita Falls, Texas, was sentenced yesterday by U.S. District Judge Reed C. O’Connor to 48 months in federal prison for failing to register as a sex offender, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Higgins was convicted in the Circuit Court for the State of Oregon for Union County in June 2000 of rape and sodomy and was sentenced to 75 months on each count, to run concurrently. He was also required to register as a sex offender, a requirement that he acknowledged when he was released from custody in May 2012. On November 9, 2012, Higgins registered as a sex offender with the LaGrande Police Department in Oregon.
In January 2012, Higgins moved to Texas. He failed to advise the State of Oregon of the move and he failed to register in Texas as a sex offender, as required by the Sex Offender Registration Notification Act (SORNA). The Wichita Falls Police Department issued an arrest warrant for Higgins on May 15, 2013, charging him with failing to comply with registration requirements, and he was arrested the following day.
Higgins admitted he knew he was a sex offender, and he knew of his duty to register. He admitted he had been convicted of raping a 13-year-old victim.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Wichita Falls Police Department and the U.S. Marshals Service investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
Ringleader Pleads Guilty to Million Dollar Bank Fraud Conducted in California and Nevada CasinosRead the Press Release
United States Attorney Laura E. Duffy announced today that Ara Keshishyan pleaded guilty to leading and organizing a 14-defendant conspiracy to steal more than $1 million from Citibank using cash advance kiosks in a dozen casinos from Southern California to Las Vegas.
Keshishyan presided over a conspiracy to exploit a gap in Citibank’s electronic transaction security protocols in order to overdraw more than 20 Citibank accounts by tens of thousands of dollars each. The scheme worked as follows: Keshishyan recruited conspirators to open Citibank checking accounts that Keshishyan would fund with “seed” money that would form the basis for future fraudulent withdrawals. Keshishyan and his various conspirators then traveled to casinos in Southern California and Nevada, including the Morongo, Pechanga, San Manuel, Agua Caliente, Chukchansi, and Spa Resort casinos in California; the Tropicana, Wynn, Bicycle, and Whiskey Pete’s casinos in Las Vegas, Nevada; and Harrah’s in Laughlin, Nevada. Once inside the casino, Keshishyan instructed the conspirator how to conduct identical, fraudulent withdrawals at cash advance kiosks within a short time window in order to circumvent Citibank security protocols. Keshishyan’s technique exploited a glitch that allowed his conspirators to withdraw several times the amount of seed money deposited into the accounts. In one case, Keshishyan and one of the co-conspirators were able to withdraw 10 times the amount of money deposited into one of the accounts opened in furtherance of the fraud. The conspirators were careful to keep their deposits and withdrawals under $10,000 (typically between $9,000 and $10,000) in order to avoid federal transaction reporting requirements.
As part of his guilty plea today, Keshishyan admitted that, using these methods, he and his co-conspirators stole more than $1 million from Citibank between June 2009 and January 2010. Keshishyan further admitted that, as the organizer of the conspiracy, he personally took a cut of every fraudulent withdrawal that he directed.
United States Attorney Duffy said, “This is an example of a class of cyber-fraud that burdens our financial system and results in a higher cost of doing business for American consumers. Along with our agency partners, my office is committed to detecting and prosecuting these schemes in whatever form they take.”
FBI Special Agent in Charge Daphne Hearn commented, “While advancements in technology have created a world of accessibility to users and a convenience for consumers, they have also left room for cyber criminals to exploit even the smallest of loopholes. The FBI will continue to use our investigative expertise in cyber and financial crimes to pursue those who illegally abuse our financial system for their own personal gain.”
Keshishyan is the 13th defendant to plead guilty in the case. The lone remaining charged defendant is a fugitive. Several of Keshishyan’s codefendants have already been sentenced to prison time and have been ordered to pay restitution for their roles in the scheme. Keshishyan is scheduled to be sentenced by Judge Janis L. Sammartino on September 12, 2014 at 9:00 a.m. His guilty plea is subject to acceptance by Judge Sammartino.
DEFENDANT Case Number: Ara Keshishyan Age 31 Filmore, CA - Sentencing hearing set for September 12, 2014, before Judge Sammartino. Ara Harutyunyan Age 32 Glendale, CA- Sentence: imprisonment for 12 months and one day; supervised release for three years; restitution of $307,161
Artur Harutyunyan Age 26 Glendale, CA- Sentence: imprisonment for 12 months and one day; supervised release for three years; restitution of $307,161
Vahe Asatrian Age 31 North Hollywood, CA- Sentence: imprisonment for 12 months; supervised release for three years; restitution of $307,161
Sarkis Mooshidian Age 39 Burbank, CA- Sentence: probation for five years; restitution of $66,500
Levon Karamyan Age 60 FUGITIVEThe charges and allegations contained in the Indictment are merely accusations, and this defendant is considered innocent unless and until proven guilty.
Migran Yamalyan Age 32 Winnetka, CA- Sentencing hearing set for June 20, 2014, before Judge Sammartino
Seryozha Harutyunyan Age 61 Glendale, CA- Sentence: imprisonment for six months; supervised release for three years; restitution of $106,370
Lianna Avetisyan Age 26 North Hollywood, CA- Sentencing hearing set for August 22, 2014, before Judge Sammartino
Ashot Oganisyan Age 32 Mission Hills, CA- Sentencing hearing set for June 27, 2014, before Judge Sammartino.
Ovsep Sarafyan Age 35 North Hollywood, CA- Sentence: imprisonment for one month; home detention for seven months; supervised release for three years; restitution of $85,924
Daniel J. Thomas Age 58 Huntington Beach, CA- Sentence: probation for five years; restitution of $65,260
Hilda Hakverdyan Age 55 Glendale, CA- Sentence: probation for five years; restitution of $105,960
Asatur Asatryan Age 35 Pasadena, CA- Sentencing hearing set for August 15, 2014, before Judge Sammartino
CHARGESConspiracy to Commit Bank Fraud – Title 18, U.S.C., Section 371 (all defendants)
INVESTIGATING AGENCY
Maximum penalty: five years’ imprisonment and $250,000 fineFederal Bureau of Investigation
*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Pinellas Man Found Guilty of Attempted Use of Weapon of Mass DestructionRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Sami Osmakac (27, Pinellas Park) guilty of attempted use of weapons of mass destruction and possession of a fully automatic firearm. Osmakac faces a maximum penalty of life in federal prison. His sentencing hearing is scheduled for October 7, 2014.
“The jury’s verdict in this case represents another victory in our fight against terrorism, which remains our top priority,” said U.S. Attorney A. Lee Bentley, III. “Our success here is due in part to assistance from the Muslim community, which brought the defendant’s extremist views to the attention of law enforcement.”
Osmakac was indicted on February 2, 2012.
According to testimony and evidence presented at trial, on January 7, 2012, Osmakac attempted to use weapons of mass destruction, including a car bomb, grenades, and a suicide explosive, at two locations in the Tampa Bay area. Specifically, his intended targets were MacDinton’s Irish Pub, in the South Howard area of Tampa, and the Hard Rock Casino, in Tampa. Additionally, on January 7, 2012, Osmakac possessed a machinegun without the firearm being registered to him on the National Firearm Registration and Transfer Record.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Sara C. Sweeney and Trial Attorney Clement McGovern from the National Security Division at the Department of Justice.
Peach Springs Man Sentenced to 19.5 Years in Prison for Aggravated Sexual AbuseRead the Press Release
PHOENIX – On June 9, 2014, Raphael James Kaska, 54, of Peach Springs, Ariz., a member of the Yavapai-Apache Nation, was sentenced by U.S. District Judge G. Murray Snow to 235 months in prison, followed by a term of lifetime supervised release. Kaska pleaded guilty to aggravated sexual abuse.
According to the plea agreement, in February 2012, Kaska used force to engage in a sexual act with the minor victim. The offense happened on the Hualapai Nation Indian Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Hualapai Nation Police Department. The prosecution was handled by Christina J. Reid-Moore and Sharon K. Sexton, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-13-8141-PCT-GMS
RELEASE NUMBER: 2014-034_KaskaFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Parker Man Sentenced to Federal Prisonfor Abusive Sexual Contact with A MinorRead the Press Release
PHOENIX – On June 9, 2014, Roberto Aguilar-Ramirez, 52, of Parker, Ariz., was sentenced by U.S. District Judge Roslyn O. Silver to 168 months in prison, followed by a term of lifetime supervised release. Aguilar-Ramirez pleaded guilty to abusive sexual contact with a minor.
According to the plea agreement, on or between September 2007 and November 2009, Aguilar-Ramirez, a foster father, had engaged in sexual contact with the minor victim, who was a member of the Colorado River Indian Tribes.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Colorado River Indian Tribes Police Department. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-12-0922-PHX-ROS
RELEASE NUMBER: 2012-033_ Aguilar-RamirezFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Oxford Man Pleads Guilty to Filing A FalseTax Return & Role in Conspiracy to File False Tax ReturnsRead the Press Release
Randal Bellestri of Oxford, Michigan, owner of Odyssey, Inc. a Lake Orion, MI corporation, pleaded guilty yesterday to one count each of filing false tax returns and conspiring to file false tax returns with the Internal Revenue Service, United States Attorney Barbara McQuade announced today.
McQuade was joined in the announcement by Carolyn Weber, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation.
Bellestri, 57, entered the guilty plea before U.S. District Judge Arthur J. Tarnow.
According to court records, Odyssey, Inc. produces machine tools for the aviation industry. Beginning in 2000 and continuing until about 2009, Bellestri had an agreement with an employee at Odyssey regarding the sale of scrap metal left over from Odyssey’s manufacturing operations. Bellestri authorized the employee to serve as a contact with the scrap metal buyer and to collect the proceeds from the sales in cash. The proceeds were then divided between Bellestri and the employee. By accepting only cash for the sale of the scrap, Bellestri was able to conceal the receipt of the cash from Odyssey, Inc. as well as the Internal Revenue Service. Bellestri did not claim the cash proceeds from these scrap metal sales as income on his federal income tax returns. Bellestri’s failure to report these cash proceeds for the 2005 through 2008 tax years caused his income to be understated by approximately $2,155,000.
“Every American has a duty to pay their fair share of taxes. IRS-Criminal Investigation will continue to direct its efforts at those individuals who willfully and intentionally violate this known legal duty,” said Acting Special Agent in Charge Carolyn Weber.
Bellestri’s sentencing is set for September 16, 2014. The conspiracy charge carries a maximum term of imprisonment of five years and/or a fine of $250,000. The filing a false tax return charge carries a maximum term of imprisonment of three years and/or a fine of $250,000.
The case was investigated by special agents of the IRS-Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Christopher L. Varner.
Ohio Man Indicted on Heroin Distribution ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Matthew Lyman, Public Affairs Specialist/Community Outreach CoordinatorWHEELING, WEST VIRGINIA – An Ohio man has been indicted on charges of distributing heroin in Marshall County, according to United States Attorney William J. Ihlenfeld, II.
Lionel Jacquel “Kilo” HOLLINGSWORTH, 25 year old, of Marietta, OH, has been charged with two counts of “Distribution of Heroin”, one count of “Interstate Travel in Aid to a Racketeering Enterprise” and one count of “Use of a Telephone to Facilitate the Distribution of Heroin.”
HOLLINGSWORTH is alleged to have sold heroin in Moundsville, W. Va. on two occasions in November and December of 2013 to a confidential informant. He faces up to 20 years in prison for each distribution charge, up to 5 years in prison on the racketeering charge and up to 4 years in prison on the telephone count.
This case is being investigated by the Marshall County Drug Task Force, which includes officers and agents from the Glen Dale Police Department, the Marshall County Sheriff’s Department, the Moundsville Police Department, and the U.S. Drug Enforcement Administration.
Assistant U.S. Attorney Randolph J. Bernard is prosecuting the case on behalf of the government.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Nigerian Man Admits Role in Computer Hacking Scheme That Targeted Government EmployeesRead the Press Release
NEWARK, N.J. - A Nigerian man today admitted his role in a computer hacking and identity theft scheme that defrauded vendors of nearly $1 million of office products after “phishing” e-mail login information from government employees, New Jersey U.S. Attorney Paul J. Fishman announced.
Abiodun Adejohn, a/k/a “James Williams,” a/k/a “Olawale Adeyemi,” a/k/a “Abiodun Ade John,” a/k/a “Abiodun Ade-John,” 30, of Nigeria, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with one count of wire fraud conspiracy.
According to documents filed in this case and statements made in court:
The scheme employed “phishing” attacks, which used fraudulent e-mails and websites that mimicked the legitimate e-mails and web pages of U.S. government agencies, such as the U.S. Environmental Protection Agency (EPA). Employees of those agencies visited the fake web pages and provided their e-mail account usernames and passwords.
Adejohn and his conspirators used these stolen credentials to access the employees’ e-mail accounts in order to place fraudulent orders for office products, typically printer toner cartridges, in the employees’ names from vendors who were authorized to do business with U.S. government agencies. Adejohn and his conspirators directed the vendors to ship the fraudulent orders to individuals in New Jersey and elsewhere to be repackaged and ultimately shipped to overseas locations controlled by Adejohn and his conspirators. Once the orders were received in Nigeria, Adejohn and his conspirators sold the toner cartridges to another individual on the black market for profit.
Adejohn was arrested in Arizona on Sept. 24, 2013, and has been detained since his arrest.
The wire fraud conspiracy to which Adejohn pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 9, 2014.
U.S. Attorney Fishman credited special agents of the EPA Office of Inspector General (OIG), under the direction of Special Agent in Charge Thomas Muskett; General Services Administration OIG, under the direction of Special Agent in Charge Paul Walton; Department of Commerce OIG, under the direction of Todd J. Zinser; Department of Defense, Criminal Investigative Service, under the direction of Director James Burch; and special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Shana W. Chen, of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
14-210Defense counsel: John Yauch Esq., Assistant Federal Public Defender
Adejohn, Abiodun Information
Newark, N.J., Man Pleads Guilty to Multiple CarjackingsRead the Press Release
NEWARK, N.J. - A Newark man today admitted his role in three gunpoint carjackings and an attempted carjacking within a one-week period and to firing his gun during one of the robberies, U.S. Attorney Paul J. Fishman announced.
Corey Thermitus, 22, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with three counts of theft of a motor vehicle by force, violence and intimidation; one count of attempted theft of a motor vehicle by force, violence and intimidation; and one count of discharging a firearm in furtherance of a violent crime.
According to documents filed in this case and statements made in court:
On Dec. 21, 2012, Thermitus was a passenger in a car that had stopped on a street in the Ironbound section of Newark. Thermitus and several other men exited the car and approached two people standing next to a Toyota Corolla that had just parked. Thermitus brandished a gun at the victims, while another man searched the victims and took the keys to the Toyota Corolla. Once the men had the keys, Thermitus and the other men fled the scene in both vehicles.
He also admitted that on Dec. 26, 2012, he and another man were in the area of 6th Avenue and N. 9th Street in Newark, when they approached a Nissan Altima. Thermitus approached the passenger side of the vehicle, where one of the victims was seated, and attempted to open the door, but the victim resisted and attempted to hold the door closed. Thermitus then told an accomplice to shoot a second victim who was standing next to the car. In response, both victims stepped away from the Nissan Altima and the other man fled the area in the vehicle.
Thermitus admitted that on Dec. 28, 2012, he took a Honda Accord at gunpoint from a victim who was seated in the car in the driveway of a Newark residence. Once the victim got out of the car, Thermitus and two other men fled the area in the Honda Accord. Approximately one hour later, the three men traveled to Midland Place in Newark in the carjacked Accord, where he and one of the other men attempted to carjack a Nissan Pathfinder at gunpoint. Thermitus and another man approached the Nissan Pathfinder while one of the victims in the vehicle was parking it in the garage of a residence. Thermitus pointed a gun at the victim and demanded the victim get out of the vehicle. The victim resisted and drove down the driveway and down the street to escape the carjacking attempt. Moments later, the victim returned to the residence to find Thermitus and the other two men attempting to escape in the carjacked Honda Accord. When another person came outside of one of the residences on the street to check on the commotion, Thermitus fired a shot at the person. The three men fled the scene in the carjacked Honda Accord. No one was injured in the attack.
Each carjacking and attempted carjacking charge carries a maximum potential penalty of 15 years in prison. The discharge of a firearm in furtherance of a violent crime charge carries a mandatory minimum penalty of 10 years in prison and a maximum penalty of life in prison, which must be consecutive to any term imposed on the underlying carjacking offenses. Each charge carries a statutory maximum fine equal to the greatest of $250,000, twice the gross amount of any pecuniary gain that any persons derived from the offense, or twice the gross amount of any pecuniary loss sustained by any victims of the offense. Thermitus must also pay restitution to the carjacking victims. Sentencing is scheduled for Sept. 10, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; and the Newark Police Department, under the direction of Director Sheilah A. Coley and Chief Ivonne Roman, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Dara Aquila Govan of the
Organized Crimes/Gangs Unit in Newark.14-209
Defense counsel: Peter Carter Esq., Assistant Federal Public Defender, Newark
Thermitus, Corey Information