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1 August 2014
Belleville Man Sentenced for Firearm OffenseRead the Press Release
Follow @SDILNewsRonnell M. Hunter, 21, of Belleville Illinois, was sentenced on August 1, 2014, in federal district court, in East St. Louis, Illinois, for unlawfully possessing a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Hunter was sentenced to 24 months in prison, to be followed by three years supervised release, fined $250, and ordered to pay a $100 special assessment. He was apprehended after he ran from law enforcement officers requesting he show identification, as he walked through the John DeShields Housing Complex in East St. Louis, Illinois. A Smith & Wesson .38 semi-automatic pistol was discovered in Hunter’s pocket during a pat down after his arrest. Hunter admitted to knowingly possessing the firearm.
This case was investigated by the East St. Louis Police Department and prosecuted by Special Assistant United States Attorney Neal C. Hong.
Aurora Drug Dealer Pleads Guilty to Distributing CocaineRead the Press Release
DENVER – Robert Bellender, age 39, of Aurora, Colorado, pled guilty earlier this week before U.S. District Court Judge Christine M. Arguello to possession with intent to distribute cocaine and money laundering, federal authorities announced. Judge Arguello is scheduled to sentence Bellender on October 28, 2014. Bellender was originally charged by a criminal complaint on May 10, 2013, followed by a superseding indictment on June 18, 2013. Other defendants charged in the superseding indictment include Korian Bascombe (aka k-Mac), Victor Rivas-Pinzon, Andrew T. Sorensen and Bruce Thomas. Sorensen pled guilty and will be sentenced on August 21, 2014. Rivan-Pinzon and Thomas plead guilty and were sentenced to 42 and 38 months in prison, respectively. Bascombe is scheduled for trial on September 22, 2014.
According to information contained in court documents, including the stipulated facts contained in Bellender’s plea agreement, the investigation started in October of 2011 and continued through the date of Bellender’s arrest on May 28, 2013. Numerous cocaine purchases from Bellender were made by a DEA undercover agent. Through investigative techniques, agents noted that codefendants Thomas, Sorensen and numerous other individuals, both known and unknown, were ordering quantities of powder and crack cocaine from Bellender on numerous occasions.
Bellender’s initial supplier of cocaine stopped distributing to him. At that point, Bellender began to purchase distribution quantities of powder cocaine and crack cocaine from Bascombe who was in turn being supplied with powder cocaine by Rivas-Pinzon. Bellender was selling both forms of cocaine during this entire period. Bellender and Bascombe were converting or “cooking” powder cocaine to convert it into the crack form.
Based on the investigation of the Front Range Task Force, which includes DEA, IRS CI and Aurora PD, from October of 2011 through May of 2013, Bellender and his coconspirators purchased and distributed or sold a conservatively estimated 20 kilograms or more of cocaine and 5 kilograms or more of crack cocaine. Bellender was purchasing cocaine from Bascombe for $1,200 per ounce. Twenty kilograms is the equivalent of approximately 705 ounces.
Bellender pled guilty to ten counts of possession with the intent to distribute cocaine which carries a penalty of not more than 20 years in federal prison and a fine of up to $1,000,000 per count; and one count of money laundering, which carries a penalty of not more than 20 years in federal prison, and a fine of up to $500,000 per count.This case was investigated by agents with the Front Range Task Force which includes the Drug Enforcement Administration, IRS Criminal Investigation (IRS CI) and the Aurora Police Department. The case is being prosecuted by Assistant U.S. Attorney James R. Boma.
Armed Bank Robber Sentenced to over 11 Years in Prison for Robbery in DundalkRead the Press Release
Used Inside Information Provided by His Accomplice, a Former Teller-Trainee at the Bank
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Darrius Roszario D. Washington, age 20, of Baltimore, Maryland, today to 135 months in prison followed by five years of supervised release for an armed bank robbery in which Washington forced a teller at gunpoint to accompany him and open the bank vault.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief James W. Johnson of the Baltimore County Police Department.
According to Washington’s plea agreement, on October 1, 2013, Washington and his accomplice, Janaya Brittne Person-Robinson parked his car in a lot near the M&T Bank in Dundalk. Person-Robinson had previously been a teller-trainee at the bank and was familiar with the bank layout, procedures and the tellers who worked at the bank. Shortly before 7:30 a.m., Washington and Person-Robinson approached a teller in the parking lot when she got out of her car. Washington pointed a .32 caliber gun at the teller’s head and ordered her to unlock the door of the bank. The teller initially told Washington that she could not open the door but Washington told her he knew she was lying and threatened to “blow her head off,” if she didn’t unlock the door. The teller opened the door and after Washington and Person-Robinson entered the bank, the teller fled and called police.
Once inside the bank, Washington, using information provided by Person-Robinson, approached a second teller, calling her by name. Washington knew that the teller had access to the bank’s vault. Using the gun, Washington forced the teller to accompany him to the vault and ordered her to open the door, threatening that if she did not, she would never see her child, whom Washington called by name, again. The teller opened the vault door and Washington forced her to the floor at gunpoint. Washington removed the money from the vault, while Person-Robinson emptied the cash from the teller drawers. Washington and Person-Robinson then left the bank, carrying a canvas bag filled with $133,600, got into their car and attempted to flee. They were arrested a short time later. Officers recovered the cash stolen from the bank, the gun used during the robbery, and the hats and latex gloves worn by Washington and Person-Robinson during the robbery.
Person-Robinson, age 20, of Baltimore, pleaded guilty to her role in the bank robbery. Judge Bennett has scheduled her sentencing for October 22, 2014, at 3:00 p.m.
Washington and Person-Robinson remain in federal custody.
United States Attorney Rod J. Rosenstein commended the FBI and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Gregory R. Bockin and Judson T. Mihok, who prosecuted the case.
Armed Baltimore Robber Sentenced to 20 Years in Prison Robbed Eight 7-Eleven Stores in 18 DaysRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced John Robinson, age 34, of Baltimore, today to 20 years in prison followed by three years of supervised release for robbery and using a gun in furtherance of the robbery.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; Baltimore City State’s Attorney Gregg L. Bernstein; Baltimore Police Commissioner Anthony W. Batts; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, from December 1 to 18, 2013, Robinson and a co-conspirator robbed eight 7-Eleven Stores using a loaded revolver. The stores were located in Baltimore on Boston Street, Holabird Avenue, West 33rd Street, Belair Road, Reisterstown Road, Harford Road, Frederick Road and Pulaski Highway. In each of the robberies, Robinson wore a mask and pointed the gun at the store employee, demanding money. Robinson or his co-conspirator, who was also masked, would take other items as well, such as cigarettes and lottery scratch-off tickets. On some occasions, Robinson would order the store employee to lie on the floor.
Co-defendant Bryant Smith, age 26, also of Baltimore, was charged by indictment with robbery and using a gun in furtherance of the robbery. Smith pleaded not guilty on October 25, 2013 and is scheduled for a re-arraignment on August 22, 2014.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department; Baltimore City State’s Attorney=s Office, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg, who prosecuted the case.
Anne Arundel County Cocaine Dealer Exiled to over 11 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Paul Rodney Cain, age 48, of Pasadena, Maryland, today to 135 months in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Anne Arundel County Police Chief Kevin Davis; and Anne Arundel County State’s Attorney Anne Colt Leitess.
According to his plea agreement, from November 2012 through July 24, 2013, Cain conspired with Daryell Rexrode, Allan Ferdock, Julie Marie Gardner and others to distribute cocaine. On November 16, 2012, Rexrode was arrested in Baltimore upon arriving to accept a controlled delivery of a kilogram of cocaine that he intended to split with Cain.
In May 2013, law enforcement initiated wiretaps on two cell phones belonging to Cain and learned that Rexrode and Cain were building their inventory of cocaine. For example, between May 21 and 24, 2013, law enforcement overheard Cain agree to buy one kilogram of cocaine from Ferdock for $36,000. Law enforcement arrested Ferdock on May 24 after witnessing Ferdock purchase a kilogram of cocaine which he intended to re-sell to Cain. Law enforcement seized the cocaine.
Following Ferdock’s arrest, law enforcement intercepted many calls in which Rexrode and Cain, who did not believe that law enforcement had seized the cocaine, discuss confronting Ferdock about the cocaine that Ferdock had agreed to deliver. The conspirators devised a plan to have Cain take Rexrode’s brother to Ferdock’s residence to confront Ferdock.
On May 26, 2013, law enforcement intercepted a call in which Cain told Rexrode that he had just left Rexrode’s brother at Ferdock’s home. In the early morning hours of the next day, law enforcement arrested Rexrode’s brother on Ferdock’s property. At the time of his arrest, Rexrode’s brother was wearing latex gloves and carrying a mallet, a knife and a roll of duct tape.
On July 24, 2013, law enforcement executed a search warrant at a storage unit in Glen Burnie, Maryland, which was rented in Gardner’s name. Gardner was Cain’s girlfriend. Officers seized approximately one kilogram of cocaine from the storage unit.
Cain conspired to distribute more than five kilograms of cocaine.
Daryell M. Rexrode, Allan Clay Ferdock, both age 56, Julie Marie Gardner, age 36, all of Pasadena, previously pleaded guilty to their roles in the conspiracy. Rexrode was sentenced to 160 months in prison; Ferdock was sentenced to 51 months in prison; and Gardner was sentenced to 21 months in prison.
United States Attorney Rod J. Rosenstein commended the DEA, Anne Arundel Police Department and Anne Arundel County State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Peter J. Martinez and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Acting United States Attorney NamedRead the Press Release
INDIANAPOLIS – Josh J. Minkler, 51, has been named the Acting United States Attorney for the Southern District of Indiana. Minkler served as the First Assistant under former United States Attorney Joseph H. Hogsett and will now lead the federal prosecutor’s office.
In addition to serving as the First Assistant, Minkler was the Drug Unit Chief and served as an Assistant U.S. Attorney prosecuting drug, violent crime, and public corruption cases. He graduated from Indiana University School of Law, Bloomington, IN, in 1988, and earned a bachelor’s degree from Wabash in 1985.
Replacing Minkler as First Assistant U.S. Attorney is Joe H. Vaughn who previously served as the Criminal Chief.
31 July 2014
Washington, D.C. Man Pleads Guilty to Traveling to Maryland to Engage in Sexual Activity with A MinorRead the Press Release
Communicated With the Victim Through a Social Networking Site
Greenbelt, Maryland – Gregory King, age 28, of Washington, D.C. pleaded guilty today to traveling across state lines to engage in illicit sexual conduct with a 14 year old female and to using a computer to persuade, induce, entice and coerce the minor to engage in sexually explicit conduct.The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Richard McLaughlin of the Laurel Police Department.
According to King’s plea agreement, on October 9, 2013, he initiated a chat with the victim, a 13 year old girl, on a social networking site. The girl advertised her age on her profile page as 13. During October and November 2013, King and the victim exchanged sexually explicit photographs and engaged in sexually explicit conversations. On October 30, 2013, King chatted with the victim about coming to her house in Maryland from Washington, D.C., telling the victim that he would take a bus to her house. The victim provided King with her address, but King was not able to get to the victim’s house that night. King continued to chat with the victim and on November 21, 2013, shortly after the victim’s 14th birthday, again discussed coming to the victim’s home. King took a bus from Washington, D.C. and met the victim at her home, where he spent the night. King was arrested on January 19, 2014.
As part of his plea agreement, King must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
King faces a maximum sentence of 30 years in prison for the traveling charge; a mandatory minimum of 10 years and up to life in prison, for using a computer to coerce a minor to engage in sexually explicit conduct; each followed by a minimum of five years and up to lifetime of supervised release. U.S. District Judge Peter J. Messitte has scheduled sentencing for October 15, 2014 at 9:30 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI and Laurel Police Department for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section and Assistant U.S. Attorney Kristi N. O’Malley, who are prosecuting the case.
United States Attorney Announces Significant Sentence in Armed Bank RobberyRead the Press Release
Suspect shot at police officer four times
INDIANAPOLIS – Joseph H. Hogsett, United States Attorney, announced the sentence of Pascal S. Sylla, 46, of Anderson, today. Sylla was convicted of one count of attempted bank robbery and one count of use and discharge of a firearm during and in relation to a crime of violence. Sylla was sentenced to 35 years by United States District Judge Sarah Evans Barker.
“This case proves the diligence of our federal, state and local law enforcement officials,” said Hogsett. “But it also shows that many in our community who call for longer sentences for criminal activity aren’t paying attention to what we do in the United States Attorney’s Office. A thirty-five year sentence means that Mr. Sylla will never walk our streets again.”
On August 1, 2003, Sylla entered the Madison County Federal Credit Union on 53rd Street in Anderson, Indiana. As he entered he pulled out a chrome semi-automatic pistol and ordered the single customer and teller in view to get on the ground. The customer happened to be the Assistant Chief of Police for the Anderson Police Department, Ray Novak. Novak complied with Sylla’s demands but as Sylla went after the bank teller Novak drew a revolver from his ankle, announced he was police and told Sylla to give up.
Novak and Sylla exchanged gunfire. Sylla instructed the teller to get down and advised Novak he would give up. Instead, he took another shot at Novak, and both exited the bank, Sylla took another shot and then fled the scene. While blood samples were obtained from the scene, the case was unsolved until 2010, when the Anderson Police Department was notified that the DNA obtained at the crime scene matched that of a federal inmate. Sylla was serving time in Terre Haute Penitentiary for committing a 2005 bank robbery.
“This sentencing is the result of outstanding law enforcement cooperation between the FBI, Indiana State Police and the Anderson Police Department,” stated FBI Special Agent in Charge W. Jay Abbott.
Anderson Police Chief Larry Crenshaw said, “Today’s sentencing of Sylla is a reminder of the inherent dangers law enforcement officers face each day.”
According to Assistant United States Attorney Cynthia Ridgeway, who prosecuted the case for the government, Sylla faces three years of supervised release after serving his sentence.
Two Tighlman Island Fishermen Plead Guilty to Illegal Fish Harvesting in the Chesapeake BayRead the Press Release
Ship Captains Poached Hundreds of Thousands of Pounds of Striped Bass
Baltimore, Maryland – Michael D. Hayden, age 41, and William J. Lednum, age 42, both of Tilghman Island, Maryland, pleaded guilty today to conspiring to violate the Lacey Act and to defraud the United States through their illegal harvesting and sale of 185,925 pounds of striped bass.The plea agreements were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division Sam Hirsch; Colonel George F. Johnson IV, Superintendent of the Maryland Natural Resources Police; and Honora Gordon, Regional Special Agent in Charge for the U.S. Fish and Wildlife Service.
“These defendants admitted to systematically plundering the Chesapeake Bay of an important and protected natural resource, and at the expense of the many honest fishermen who play by the rules,” Acting Assistant Attorney General Hirsch said. “The Justice Department is committed to enforcing environmental laws that protect our shared natural resources and sustain the vital marine life of the Chesapeake Bay for future generations.”
According to their plea agreements, Hayden and Lednum were “captains” on fishing vessels owned by them, William J. Lednum Fisheries, d/b/a, Michael D. Hayden, Jr., and Michael D. Hayden, Jr., Inc. The defendants also employed numerous “helpers” as part of this scheme, including, co-defendant Kent Sadler.From at least 2007 to 2011, Hayden and Lednum illegally harvested, possessed, falsely labeled and/or sold at least 185,925 pounds of striped bass. They used illegally weighted and/or anchored gill nets, left the nets in the water overnight, and set the nets during times when the commercial striped bass gill-netting season was closed. The defendants exceeded their maximum daily vessel limit of striped bass and either unloaded the surplus onto an anchored vessel or paid others a fee to check-in fish for them. Hayden and Lednum falsified the permit allocation cards and daily catch records for their striped bass fishing trips to over-report the numbers of striped bass caught and under-report the weights. This allowed them to request additional state tags under false pretenses and therefore harvest additional striped bass illegally.
Hayden and Lednum shipped and sold the striped bass to wholesalers in New York, Pennsylvania, Delaware and Maryland in the total amount of $498,293.47. None of the fish was properly reported at check-in stations or on the permit allocation cards of daily catch records submitted to the State of Maryland. Maryland in turn submits such paperwork to numerous federal and interstate agencies responsible for setting harvest levels all along the eastern seaboard.
The investigation in this case started in February 2011 when the Maryland Department of Natural Resources found tens of thousands of pounds of striped bass snagged in illegal, anchored nets before the season officially reopened. The conspirators were seen on the water in the vicinity of the illegal nets. The subsequent investigation unveiled a wider criminal enterprise to which Hayden and Lednum pled guilty today. Co-defendant Kent Conley Sadler, age 31, also of Tilghman Island, previously pleaded guilty to his participation in the conspiracy and is scheduled to be sentenced on October 21, 2014.
Hayden and Lednum face a maximum sentence of five years in prison and a $250,000 fine. The defendants have agreed to pay restitution to the State of Maryland of between $498,293 and $929,625. The defendants have further agreed to forfeit the monetary equivalent of 80% of the value of the vessel primarily used during the conspiracy. U.S. District Judge Richard D. Bennett scheduled sentencing for Hayden and Lednum on November 4 and 5, 2014, respectively.
United States Attorney Rod J. Rosenstein praised the Maryland Department of Natural Resources and U.S. Fish and Wildlife Service for their work in the investigation. Mr. Rosenstein thanked Todd W. Gleason and Shennie Patel of the Department of Justice’s Environmental Crimes Section, and Assistant U.S. Attorney P. Michael Cunningham, who prosecuted the case.Two Ronceverte Men Appear in Federal Court in BeckleyRead the Press Release
Beckley, W.Va. – United States Attorney Booth Goodwin announced today that two Ronceverte men appeared in federal court in Beckley before the Honorable Irene C. Berger. Jeffrey S. Walton, 48, was sentenced to 10 months in prison for abusive sexual contact with a female federal inmate. Walton pled guilty in April of 2014, admitting that in May or June of 2013, he touched the breasts of an inmate at the Federal Prison Camp at Alderson. At the time of the incident, Walton was employed by the Federal Bureau of Prisons and was acting as the inmate’s work supervisor. Walton is no longer a Bureau of Prisons employee. The case was investigated by the Bureau of Prisons and the Federal Bureau of Investigation.
Adam Ray Smith, 26, pled guilty to distribution of heroin. Smith admitted that on August 30, 2013, he distributed heroin to a person cooperating with law enforcement authorities. The transaction took place near Ronceverte. Smith further admitted that he distributed about 1000 packets of heroin, totaling about 48 grams, in Greenbrier County between May 2013 and August 2013. Smith faces up to 20 years in prison and a $1,000,000 fine when he is sentenced on November 13, 2014. This case was investigated by the Greenbrier Valley Drug and Violent Crime Task Force under the Greenbrier County Heroin and Pill Initiative. That initiative is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the sale of heroin and the illicit sale of prescription drugs in communities across the Southern District. Assistant United States Attorney John File handled both cases.
Two Leaders of A Burglary Crew Sentenced to PrisonRead the Press Release
Robbed 13 Banks, Credit Unions and Retail Stores of at Least $250,000
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Aaron Thelbit Davis, age 39, of Baltimore today to five years in prison followed by three years of supervised release for bank larceny, in connection with a two year scheme to burglarize banks, credit unions and retail stores. Judge Bennett sentenced co-defendant Kenneth Alexander Manns, age 48, of Baltimore, yesterday to four years in prison, followed by three years of supervised release, for bank burglary. Judge Bennett also entered orders requiring that the defendants each pay $250,000 in restitution.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Director in Charge Valerie Parlave of the Federal Bureau of Investigation’s Washington Field Office; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Chief James W. Johnson of the Baltimore County Police Department; Baltimore County State’s Attorney Scott Shellenberger; and Chief Cathy L. Lanier of the Metropolitan Police Department.
According to their plea agreements, from May 2011 through May 2013, Davis and Manns conspired with a group of associates, including Donald Taylor, to steal money and property from 13 banks, credit unions and retail stores.In order to avoid apprehension, the burglary crew would case the target location and assess the likelihood of obtaining valuables. One or more conspirators would stand as a look-out while others went inside gas stations, convenience stores, credit unions and other businesses in Maryland and Washington D.C., wearing either white paper suits or dark outfits, and masks and gloves, while communicating with handheld radios. The burglary crew would cut power and telephone lines, cables and other wires, and destroy, reposition or disconnect surveillance video cameras. They stole cash, safes, cash-register drawers and lock boxes. On several occasions, the burglary crew gained entry to the ATM room of the target location by carving a hole with a power saw from an adjacent retail space. They transported the stolen goods to their homes and businesses in Maryland.
For example, on March 19, 2011, Davis and Manns donned paper suits and black masks and forcibly gained entry to the ATM room of the Tower Federal Credit Union on Baltimore National Pike in Normandy Shopping Center in Ellicott City, Maryland, by cutting through the adjoining retail business. They waited for approximately one hour before entering the credit union’s ATM room, where they tried unsuccessfully to pry open the rear door of the ATM machine.
On August 17, 2012, Davis and Manns wore white paper Tyvek suits, black masks and gloves, and entered an ATM room of a bank in Washington, D.C. by carving a hole with a power saw from an adjacent retail space. When the Metropolitan Police responded to alarms, Davis and Manns fled before gaining access to the cash drawer of the ATM machine.
On April 28, 2013, shortly before midnight, Davis and Manns broke a glass window to the Edmondson Sunoco station in Catonsville, Maryland, and severed phone, cable and alarm power lines inside. Taylor served as a lookout from inside a van rented by Manns and parked nearby. After going behind the cashier area, Davis and Manns left and drove away from the gas station in a stolen U-Haul Ford van. Over an hour later, they returned, attempted to enter the manager’s office and then left the gas station again. At approximately 3:15 a.m., Manns and Davis returned to the gas station a third time, stole $200 from the cash register drawer and removed two store safes containing $10,080, while Taylor again served as a look-out. They loaded the safes into the stolen U-Haul van and drove away, while Taylor followed them in the van.
Donald Taylor, age 56, also of Baltimore, pleaded guilty to his role in the scheme on April 3, 2014.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland State Police, Baltimore County Police Department, Baltimore County State’s Attorney’s Office and the Metropolitan Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Mark W. Crooks, who is prosecuting the case.
Two Delta Men Arrested on Gun Charges in Connection to Wildlife PoachingRead the Press Release
DENVER – Two Delta men were arrested this morning by federal agents and state and local law enforcement officers on gun charges, U.S. Attorney John Walsh and ATF Special Agent in Charge Luke Franey announced. Brandon C. Cook, age 30, and Jonathan M. Boyd, age 29, both of Delta, were arrested without incident. They were then taken to the U.S. District Courthouse in Grand Junction where they made their initial appearance before U.S. Magistrate Judge Gordon P. Gallagher. During the court appearance both defendants were advised of their rights as well as the charges pending against them. Both Cook and Boyd were then released on bond. They are due back in U.S. District Court in Grand Junction on Monday, August 4, 2014 at 4:00 p.m.
According to the indictment, obtained by a federal grand jury in Grand Junction on May 27, 2014, Boyd knowingly provided a Weatherby model Mark V, .270 caliber rifle to Cook, knowing and having reasonable cause to know that Cook had been convicted of a felony crime punishable by a term of imprisonment of a year or more. The indictment further alleges that Cook possessed the rifle in violation of federal law as he had a prior felony conviction.
Cook allegedly used the rifle purchased in this case for him by Boyd for poaching. Cook has been charged and has pled guilty in state court to the felony charge of willful destruction of wildlife on a trophy class bull elk.
“Felons who are prohibited from owning firearms sometimes put others up to purchasing guns illegally for them,” said U.S. Attorney John Walsh. “Make no mistake, serving as a gun buyer for a felon is a felony as well. The hard work of ATF and Colorado Parks and Wildlife, with the assistance of the community, has stopped this crime in its tracks, and, we expect, prevented future poaching as well.”
“We cannot underscore the tremendous assistance of the public in calling our attention to the sheer quantity of wildlife and firearms violations in the Delta, Montrose and Olathe communities,” said Renzo DelPiccolo, Montrose Area Wildlife Manager. “We greatly appreciate the ATF, U.S. Marshals and U.S. Attorney’s Office in pursing the federal firearms violations associated with this case.”
Cook faces not more than 10 years in federal prison, and up to a $250,000 fine for being a felon in possession of a firearm. Boyd faces not more than 10 years in federal prison, and up to a $250,000 fine for unlawfully transferring a firearm to a known convicted felon.
This case was investigated by the State of Colorado Department of Natural Resources Parks and Wildlife Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Cook was apprehended by the U.S. Marshals Service Fugitive Task Force, with assistance from the FBI and U.S. Forest Service.
The defendants are being prosecuted by Assistant U.S. Attorney Michelle Heldmyer of the U.S. Attorney’s Grand Junction branch office.
The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
Substitute Teacher and Camp Counselor Sentenced for Distributing Child PornographyRead the Press Release
BOSTON – A former substitute teacher and camp counselor was sentenced today for the distribution and possession of child pornography.
Bryce Garner, 23, of East Sandwich, was sentenced by U.S. District Judge Patti B. Saris to seven years in prison to be followed by eight years of supervised release. Upon release, Garner must register as a sex offender.
Garner, who was previously employed as a substitute teacher, camp counselor and overnight babysitter/nanny, pleaded guilty in April 2014 to seven counts of distribution of child pornography and to possession of child pornography.
On Feb. 27, 2013, a federal agent in Oklahoma City conducting an on-line undercover investigation, observed Garner sharing 37 files with names consistent with child pornography. The images in the files depicted the sexual abuse of minor boys.
Agents later discovered that Garner was in possession of more than 2,300 images and more than 1,100 videos depicting the sexual abuse of children, as well as a substantial collection of child erotica. Garner used various on-line programs to find, download and share these images and videos. He was a prolific trader on these platforms, often sending child pornography unsolicited, being insistent about trading, and explicitly sending these images and videos in order to gain child pornography in return. The images and videos depict minors engaged in sexually explicit conduct and were labeled with explicit names reflecting their content.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in
Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The case was prosecuted by Assistant U.S. Attorney Stacy Dawson Belf of Ortiz’s Major Crimes Unit.Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Staten Island Woman Admits Role in $65 Million Stolen Identity Income Tax Refund Fraud SchemeRead the Press Release
NEWARK, N.J. - A Staten Island, New York, woman today admitted her role in one of the nation’s largest and longest running stolen identity refund fraud schemes ever identified, in which more than 8,000 fraudulent U.S. income tax returns sought more than $65 million in tax refunds and resulted in losses to the United States of more than $12 million, U.S. Attorney Paul J. Fishman announced.
Elian Matlovsky, 29, pleaded guilty today before U.S. District Judge Claire C. Cecchi to an information charging her with one count of conspiracy to defraud the United States and one count of theft of government property.
According to documents filed in this case and statements made in court:
Stolen Identity Refund Fraud
Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that results in more than $2 billion in losses annually to the United States Treasury. SIRF schemes generally share a number of hallmarks:
- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico.
- SIRF perpetrators complete Form 1040 Individual Income Tax Returns using the fraudulently obtained information and falsifying wages earned, taxes withheld and other data. Perpetrators use data to make it appear that the “taxpayers” listed on the fraudulent 1040 forms are entitled to tax refunds – when in fact, the various tax withholdings indicated on the fraudulent 1040s have not been paid by the listed “taxpayers,” and no refunds are due.
- Perpetrators direct the U.S. Treasury Department to issue the refunds through checks generated by the fraudulent 1040 forms to locations they control or can access.
- With checks now in hand, SIRF perpetrators generate cash proceeds. Certain SIRF perpetrators sell refund checks at a discount to face value. In turn, the buyers then cash the checks, either themselves or using straw account holders, by cashing checks at banks or check cashing businesses or by depositing checks into bank accounts. When cashing or depositing checks, SIRF perpetrators often present false or fraudulent identification documents in the names of the “taxpayers” to whom the checks are payable.
The Investigation
Federal law enforcement agencies created a multi-agency task force in New Jersey composed of investigators from the IRS and the U.S. Postal Inspection Service, along with the U.S. Secret Service and with assistance from the Drug Enforcement Administration (New Jersey Task Force).
An investigation led by the New Jersey Task Force, with assistance from U.S. Immigration and Customs Enforcement, Homeland Security Investigations, revealed that from at least 2007, dozens of individuals in the New Jersey and New York area have been engaged in a large-scale, long-running SIRF scheme that caused more than 8,000 fraudulent 1040 forms to be filed, seeking more than $65 million in tax refunds, with more than $12 million in losses to the U.S. Treasury.
Matlovsky and others obtained personal identifiers, such as dates of birth and Social Security numbers, belonging to Puerto Rican citizens. They used those identifiers to create fraudulent 1040 forms, which falsely reported wages purportedly earned by the “taxpayers” and taxes purportedly withheld, to create the appearance that the “taxpayers” were entitled to tax refunds. The returns were filed electronically. By tracing the specific IP addresses that submitted the electronically-filed 1040s, law enforcement officers learned that just a handful of IP addresses created many of the fraudulent 1040 forms that lead to the issuance of tax refund checks.
Conspirators purchased mail routes, that is, lists of addresses covered by a single mail carrier. Conspirators applied for refunds, inserted addresses along the mail route as the purported home addresses of the “taxpayers,” and obtained the refund checks sent to the addresses. They also applied for checks using addresses otherwise controlled by, or accessible by, certain conspirators and collected the checks after they were delivered to those addresses. During the course of the scheme, hundreds of refund checks were mailed to just a few different addresses in a few different towns, including Nutley, Somerset and Newark, New Jersey, and Shirley, New York.
Matlovsky and others then deposited and cashed the checks. The conspirators used several methods, but Matlovsky opened several bank accounts, into which she deposited nearly $1 million in Tax Refund Treasury Checks. Once the Tax Refund Treasury Checks were deposited into Matlovsky’s accounts, she and others caused proceeds of the fraud to be withdrawn, and spent those funds.
During the course of the investigation, members of the task force identified certain “hot spots” of activity and intercepted more than $22 million in refund checks – that had been applied for fraudulently – before they were delivered to members of the conspiracy.
The conspiracy count carries a maximum potential penalty of five years in prison and up to a $250,000 fine. The substantive count of theft of government property carries a maximum potential penalty of 10 years in prison and up to a $250,000 fine. The theft of mail by a postal employee carries a maximum potential penalty of five years in prison and up to a $250,000 fine. Sentencing is scheduled for Nov. 18, 2014.
U.S. Attorney Fishman praised special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; and the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl Kotowski, for the investigation.
The government is represented by Assistant U.S. Attorneys Mala Ahuja Harker, Lakshmi Srinavasan Herman, Zach Intrater, and Danielle Walsman of the U.S. Attorney’s Office Criminal Division in Newark.14-276
Defense Counsel: Henry E. Klingeman Esq., Newark, New Jersey
Matlovsky, Elian Information
Springfield Man Sentenced for Scheme to Sell Thousands of Counterfeit DVDsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., man has been sentenced in federal court for a scheme to sell thousands of counterfeit DVDs over the Internet.
Matthew Cerullo, 42, of Springfield, was sentenced by U.S. District Judge Greg Kays on Wednesday, July 30, 2014, to one year and one month in federal prison without parole. The court also ordered Cerullo to forfeit to the government a desktop computer, a laptop computer, various computer media, two cameras, an iPhone, two additional cell phones, 15 gold coins, 240 silver coins, four baseball cards, all of the counterfeit DVDs and $5,300, all of which was used to commit the offenses or was obtained from the proceeds of the offenses.
Cerullo pleaded guilty on Oct. 28, 2013, to mail fraud, trafficking in counterfeit labels, trafficking in counterfeit goods and making false statements to federal agents.
Based on records obtained from the U.S. Postal Service, the United Parcel Service (UPS), DHL, EBay and Amazon.com, federal agents determined that Cerullo purchased and received more than 22,000 counterfeit DVDs from a distributor in Hong Kong, China between Feb. 13, 2013 and Sept. 10, 2013.
According to court documents, the federal investigation began when a shipment of counterfeit DVDs from Hong Kong was seized by Customs and Border Protection agents at JFK Airport. The counterfeit DVDs were being shipped to a UPS store located in Springfield under the name of a business owned by Cerullo.
Federal agents interviewed Cerullo at his residence on May 2, 2013. Cerullo told agents that he had not receive a seizure notice from Customs and Border Protection. Cerullo also told agents that he orders toys and jewelry from China to resell on EBay or to local venders, but does not buy DVDs. Cerullo claimed that he owns only one business, C3 Wholesale, LLC.
During the course of the investigation, however, agents learned that Cerullo’s statement contained false and fraudulent information that was designed to mislead them and their investigation. Agents determined that Cerullo had in fact received four prior seizure notices from Customers and Border Protection; these notices were discovered in his desk during the execution of a search warrant at his residence. Agents also learned that Cerullo owned, operated and sold counterfeit DVDs through four different businesses: C3 Wholesale, LLC; EJC Supply, LLC; Midwest Wholesale and Capital Sierra, LLC; and EJC Supply Company.
On Sept. 3, 2013, agents observed Cerullo mail a large quantity of packages at a local post office. Postal Inspectors inspected the contents of these packages and discovered that Cerullo had mailed 165 packages of counterfeit DVDs to various individuals around the country. Inspectors also noted that the return address on each package was fictitious.
The next day, federal agents executed a search warrant on Cerullo’s residence and a storage locker that Cerullo rented. Agents discovered nearly 23,000 counterfeit DVDs between those locations.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).Six Defendants Charged in Separate Fraud Schemes to Obtain $2.7 Million in Mortgages, Student Aid, Bank and Small Business LoansRead the Press Release
CHICAGO — Six defendants are facing federal fraud charges involving separate schemes to obtain a total of more than $2.7 million through fraudulent statements in loan applications submitted to banks, mortgage lenders, several community colleges, the U.S. Department of Education, and the Small Business Administration since 2006. Five of the defendants were indicted together yesterday for scheming to fraudulently obtain more than $2.4 million. The sixth defendant, who alone was arrested today, was indicted separately for allegedly scheming to fraudulently obtain an additional $300,000 in mortgage fraud and student loan fraud. Both indictments stem from the same investigation of fraudulent loan applications.
In an alleged mortgage fraud scheme, three of the five defendants ― ANTHONY TRICE, then president of Fifty One 06 Property Management and Acquisitions, Inc., JERROD L. WEATHERSBY, a director and vice president of the defunct company, and NOREEN B. MIAN, then a licensed loan officer for Exclusive Bancorp., Inc., in Lincolnwood ― were charged with scheming with others between 2006 and 2011 to fraudulently obtain more than $2.1 million in mortgage loans for 14 properties in Chicago and suburban Burnham and Park Forest. According to the indictment, Trice, 34,of Chicago; Weathersby, 36, of Harvey; and Mian, 34, of Chicago, prepared and submitted false documents and made false statements to lenders about the buyers’ qualifications for the loans. Trice also allegedly made false statements in requests for loan modifications related to two of the properties.
In an alleged student loan fraud scheme between 2010 and 2012, Trice and Weathersby, together with WARREN K. TAYLOR, 35, and DAVID N. EDWARDS, 37, both of Chicago, were charged with fraudulently seeking to obtain approximately $240,000, and successfully obtaining approximately $135,000 by submitting at least 40 fraudulent applications for admission and federal student aid from Harper College, Elgin Community College, and Joliet Junior College. According to the indictment, the defendants knew that the applicants — some of whose identities were acquired by Trice and Weathersby in connection with an earlier credit card fraud scheme — had not agreed to be enrolled in college, were ineligible for financial aid, and did not intend to use the financial aid funds for educational purposes. The defendants allegedly caused the financial aid checks to be sent to certain addresses in Chicago and Park Forest, and that they then cashed the checks and used the proceeds for themselves and others.
In an alleged credit card fraud scheme between 2006 and 2008, Trice and Weathersby were charged with obtaining individuals’ personal identifying information by promising to help them improve their credit ratings and obtain money. According to the indictment, Trice and Weathersby then made false statements in applications for lines of credit and credit card accounts and, without the consent of the applicants, withdrew more than $145,000 from the lines of credit and credit card accounts. During the same time, they also allegedly fraudulently obtained a $35,000 bank loan, which was guaranteed by the Small Business Administration, and used the proceeds for personal purposes.
Trice was charged with six counts of mail fraud, five counts of wire fraud, three counts of bank fraud, and one count each of making false statements on loan applications, student loan fraud, and aggravated identity theft. Weathersby was charged with one count each of wire fraud and aggravated identity theft. Taylor was charged with four counts of mail fraud and one count each of aggravated identity theft and student loan fraud. Mian was charged with two counts of wire fraud and one count of making false loan application statements, and Edwards was charged with one count each of mail fraud and student loan fraud.
The indictment also seeks forfeiture of more than $2.41 million from Trice, Taylor, Mian, and Edwards. All five defendants will be arraigned on later date to be determined in U.S. District Court and an arrest warrant was issued for Edwards alone.
In a separate indictment, DERREK L. CAMPBELL, II, 34, of Chicago, was charged with two counts of making false loan application statements and one count each of wire fraud and student loan fraud for allegedly obtaining more than $300,000 through false statements to mortgage lenders between 2009 and 2013 in connection with purchasing two properties in 2009, obtaining federal student aid in 2011, and seeking a loan modification on one of the properties in 2013. The indictment also seeks forfeiture of $302,420.
Campbell was arrested today and was scheduled to be arraigned this afternoon in Federal Court.
Each count of bank fraud, wire fraud affecting a financial institution, and making false loan application statements carries a maximum sentence of 30 years in prison and a $1 million fine; each count of mail fraud carries a maximum sentence of 20 years in prison and a $250,000 fine, and student loan fraud carries a maximum of five years in prison and a $250,000 fine. Aggravated identity theft carries a mandatory sentence of two years in prison consecutive to any other sentence and a $250,000 fine.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation, together with officials of the U.S. Department of Education Office of Inspector General, the U.S. Small Business Administration, and the Federal Housing Finance Agency.
The government is represented by Assistant U.S. Attorney Christopher R. McFadden.
An indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Trice Complaint
Campbell ComplaintSentencing for July 31, 2014Read the Press Release
Therra Elsner, 32, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on July 30, 2014, on one count of passing counterfeit obligations of the United States of America and one count of passing counterfeit obligations of the United States and aiding and abetting. Elsner was arrested in Cheyenne, Wyoming. She received 33 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $200.00 special assessment and restitution in the amount of $190.00. This case was investigated by the U.S. Secret Service.
San Diego Realtor Pleads Guilty to Sex with 13-year-old GirlRead the Press Release
SAN DIEGO – San Diego realtor Michael E. Lustig pleaded guilty in federal court today to prostitution-related crimes, admitting that he paid for sex with a 13-year-old girl on several occasions.
Lustig, who was indicted by a federal grand jury in October of 2013, entered his plea before U.S. Magistrate Judge Mitchell D. Dembin. Sentencing was set for November 3, 2014, at 9 a.m. before U.S. District Judge Roger T. Benitez.
According to court records, Lustig, 70, was first contacted in June of 2012 by San Diego Sheriff's deputies during an operation targeting customers of prostitution in the Encinitas area. At the time that Lustig was arrested, deputies seized two cellular telephones which led to information that he had been in contact with two minor females.
Interviews with the minors revealed that Lustig had contacted them separately to engage in commercial sex activity. One of the minors was 11 years old at the time that sexual activity began with Lustig, and the other was 13 years of age. According to court records, surveillance video from a motel in El Cajon, California, showed Lustig entering a motel room with one of the minors and emerging 43 minutes later.
According to court records, Lustig had contacted the minors multiple times over a span of multiple months. Interviews with the minors confirmed that Lustig, known to them as “George,” had paid them for sexual activity and that at least one of the minors had identified herself as a minor.
In the plea agreement, Lustig admitted that he used a cellular telephone to contact the 13-year-old minor on multiple occasions between at least October 2011 and June 2012, seeking to engage in commercial sex activity. Lustig admitted that he thereafter engaged in commercial sex activity with the minor, paying the minor in return for sexual activity.
For example, according to the plea agreement, Lustig admitted that on October 15, 2011, he wrote the minor, asking, “Hey, is the bookstore open? I'm in desperate need of books rite now.” Lustig admitted in court that he was using code for commercial sex activity. On November 11, 2011, Lustig wrote the same minor, “U free sometime in the next 2 hours?” and “Any chance for library in 35 min, @ 7:15?”
Lustig again admitted that he used code to recruit the minor for commercial sex activity. On June 8, 2012, Lustig wrote the minor simply “Bookstore?” meaning that he wanted to establish a date for commercial sex activity.
“The United States will vigorously pursue any adult preying on children for sexual activity,” said U.S. Attorney Laura Duffy. “Defendants like Michael Lustig victimize the most vulnerable population in our community – children - and these predators will be brought to justice.”
“A predator is off our streets today and can't victimize the innocents," said Sheriff Bill Gore. “This investigation showcases the success of collaborative federal and local investigations working toward the common good.”
FBI Special Agent in Charge, Daphne Hearn, commented, “The average age of a child targeted for prostitution is between the ages of 12 to 14 for girls and 11 to 13 for boys. As a result, the FBI will remain vigilant and continue our efforts to protect our nation's children from sexual predators by working with our law enforcement partners and removing these individuals from society through the justice system.”
On October 23, 2013, a federal grand jury returned a two-count indictment charging Lustig with two counts of sex trafficking of a minor in violation of 18 U.S.C. § 1591, and criminal forfeiture.
DEFENDANT Case Number: Michael Lustig Age: 70 San Diego, California CHARGESThree counts of Interstate Travel in Aid of Racketeering Enterprises, in violation of 18 USC 1952(a) Maximum Penalty: Five years per count, 15 years total; 3 years supervised release.
INVESTIGATING AGENCYSan Diego County Sheriff’s Department
Federal 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.
Rutland Man Agrees to Plead Guilty to Heroin ConspiracyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that Nicholas Louras, 28, of Rutland, Vermont, has been charged in federal court with conspiring to distribute heroin in Vermont from November 2013 to March 2014. Louras appeared today before Magistrate Judge John Conroy in United States District Court for his arraignment and was released on conditions, including that he participate in a drug rehabilitation program as directed by the Probation Office.
The parties also filed today a plea agreement in which Louras agreed to waive indictment and plead guilty to the felony drug conspiracy, which carries a maximum possible term of imprisonment of twenty years. Under the terms of the plea agreement the Court will decide his sentence after a presentence investigation. A change of plea hearing will likely be scheduled in the near future.
The United States is represented by Assistant U.S. Attorney Joseph Perella and the defendant is represented by Natasha Sen, Esq. This matter was investigated jointly by the Vermont State Police Drug Task Force, the FBI, the DEA, and the New York State Police.Roseville Financial Advisor Sentenced to 46 Months in Prison for Stealing from Her ClientsRead the Press Release
SACRAMENTO, Calif. — Michelle Lee Kern, 36, of Sacramento, was sentenced today by United States District Judge Morrison C. England Jr. to 46 months in prison and ordered to pay $642,625 in restitution for financial advisor fraud, United States Attorney Benjamin B. Wagner announced.
According to court documents, Kern worked as a licensed financial advisor at Ameriprise Financial Services Inc. in Roseville between 2009 and December 2012. While working as a financial advisor, Kern stole $642,625 from approximately 20 clients by making wire transfers from client accounts to Kern’s own bank accounts and credit cards. Kern also forged client signatures on checks. According to victim statements read in court, Kern’s theft made it difficult for some victims to retire, support disabled children, and pay for college.
“Kern abused her role as a trusted, licensed financial advisor to defraud her clients for personal gain. Her actions clearly demonstrated disregard for the perilous financial situation her clients ultimately faced when they became victims of the fraud,” said Special Agent in Charge Monica M. Miller of the Sacramento division of the Federal Bureau of Investigation. “Investigation and prosecution of financial fraud is a top priority for the FBI, particularly such that is committed by those entrusted to safeguard funds.”
While awaiting sentencing in this case, Kern was charged in Placer County with embezzling from her church. That case is pending, and Kern is presumed innocent of those charges, unless and until proven guilty.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Michael D. Anderson prosecuted the case.
Kern was ordered to turn herself in to the Bureau of Prisons on September 11, 2014, to begin serving her sentence.
Romanians Will Be Deported Following Today's Sentencing for ATM Skimming SchemeRead the Press Release
PITTSBURGH - Two Romanians residing in Allegheny County, Pennsylvania, have been sentenced in federal court to time-served on their conviction of conspiracy, United States Attorney David J. Hickton announced today.
United States District Judge Mark Hornak imposed the sentence on Florin Popescu, 31, and Ion Carligeriu, 30, both Romanian Nationals, who have been in custody since approximately Oct. 15, 2013, following their arrest. Both defendants will be immediately deported to Romania by Immigration and Customs Enforcement Operations.
According to the information presented to the court, the defendants conspired to produce ATM skimming equipment which they installed on APC kiosks at Postal Centers on McKnight Road and in Squirrel Hill, which were designed to steal customers’ bank account information.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Postal Inspection Service, the United States Secret Service and the U.S. Department of Homeland Security Investigations for the investigation leading to the successful prosecution of these defendants.
Rio Rancho Man Arrested on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Armando Camarena, 31, of Rio Rancho, N.M., was arrested yesterday by agents of Homeland Security Investigations (HSI) on federal child pornography charges. Camarena made his initial appearance in federal court earlier today, and remains in custody pending a detention hearing scheduled for tomorrow morning.
Camarena is charged in a criminal complaint with distributing and possessing visual depictions of minors engaged in sexually explicit conduct. According to the criminal complaint, HSI initiated the investigation leading to Camarena’s arrest after receiving a lead from HSI in Idaho Falls, Idaho. HSI-Idaho reported that a 14-year-old girl had received child pornography, child erotica and threatening messages on her iPod from an individual the child met through an Internet website. Investigation revealed that the child pornography and threats were sent from an IP Address allegedly being used by Camarena.
On July 30, 2014, officers from HSI and the Albuquerque Police Department (APD) executed a federal search warrant at Camarena’s residence and seized computer images allegedly consistent with child pornography. Camarena was taken into custody at that time.
If convicted of the charges in the criminal complaint, Camarena faces a federal prison term of not less than five years and not more than 20 years. Camarena also would be required to register as a sex offender. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by SPEED, the Sexual Predator and Exploitation Enforcement Detail, which is comprised of officers from HSI-Albuquerque office, APD and the Bernalillo County Sheriff’s Office, with assistance from HSI-Idaho and the Idaho Fusion Center.
The case is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 74 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Raymond Brown Sentenced to 48 Months in Prison for Use of A Communication Facility to Facilitate A Federal Drug CrimeRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez today sentenced Raymond Brown to 48 months in prison for use of a communication facility to facilitate a federal drug crime, United States Attorney Ronald W. Sharpe announced.
Brown, 29, was arrested on July 17, 2013, as part of the investigation of Roberto Tapia, Director of the Virgin Islands Department of Planning and Natural Resources (DPNR) Division of Environmental Enforcement and charged on November 7, 2013, in a 69-count third superseding indictment, along with seven other defendants, including Angelo Hill, Hector Alcenio, Angel Negron-Betran, and Eddie Lopez-Lopez, Stephen Torres, Walter Hill, and Edwin Monsanto. On March 27, 2014, Brown was found guilty by a St. Thomas jury to one count of use of a communication facility to facilitate a federal drug crime.
Evidence introduced at trial showed that on December 2, 2012 Brown spoke to Roberto Tapia on a cellular telephone to arrange the distribution and transportation of two kilograms of cocaine. The evidence further showed that Roberto Tapia then transported the cocaine from St. Thomas to a buyer in Puerto Rico.
The case was investigated by the Public Corruption Task Force, which comprises the Federal Bureau of Investigation (FBI); U.S. Drug Enforcement Administration (DEA); Virgin Islands Police Department; U.S. Marshals Service; Internal Revenue Service Criminal Investigation Division (IRS-CI); U.S. Department of Homeland Security, Homeland Security Investigations (HSI); U.S. Customs and Border Protection (CBP); United States Coast Guard; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Office of the Virgin Islands Inspector General. Assistant U.S. Attorney Kelly B. Lake prosecuted the case.
Polk County Methamphetamine Trafficker Sentenced to 14 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez-Covington today sentenced Maximilano Reynoso (39, Winter Haven) to 14 years in federal prison for conspiring with others to distribute 500 grams or more of methamphetamine. Reynoso pleaded guilty on March 4, 2014.
According to court documents, court-authorized wire and electronic intercepts of Reynoso’s cellular phones showed that he was in direct contact with methamphetamine sources of supply in Mexico. Reynoso ordered large quantities of high-purity methamphetamine from Mexico, and supervised couriers who distributed the drugs in Polk County. Reynoso also coordinated the transfer of drug proceeds from Polk County to Mexico. Reynoso’s co-defendant, Gerardo Millian (29, Auburndale), was sentenced to 77 months in federal prison on April 24, 2014. During the investigation, Homeland Security Investigations agents and Polk County deputies made numerous seizures, including one kilogram of methamphetamine shipped via Federal Express from Manzanillo, Mexico to a residence in Polk County, 200 grams of methamphetamine from a residence in Auburndale, 4 kilograms of methamphetamine from a vehicle on Interstate 4 in Polk County, and 40 kilograms of methamphetamine from a residence on Kristen Park Drive, in Orlando.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Polk County Sheriff’s Office as part of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case was prosecuted by Assistant United States Attorney Christopher F. Murray.
Policeman Indicted for Aiding and Abetting A Conspiracy to Possess with Intent to Distribute Marijuana and for ExtortionRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Filed Office, and J.D. Patterson, Director, Miami-Dade Police Department (MDPD), announce the indictment of Roderick Silva, 45, of Miami, a police officer who formerly served as a detective assigned to the MDPD Narcotics Bureau. The indictment charges Silva with one count of aiding and abetting a conspiracy to possess with intent to distribute marijuana in violation of Title 21, United States Code, Section 846, and one of count of extortion in violation of Title 18, United States Code, Section 1951. .
The conspiracy charge against Officer Silva alleges that he aided and abetted a group of persons who were illegally growing hydroponic marijuana in numerous homes that they owned, rented, or otherwise controlled, in the south west Miami-Dade County area. The conspiracy charge further identified this group of persons as members of the Santiesteban family, and their friends and associates. The Santiesteban family members, and a number of their friends and associates, have already been convicted in a federal prosecution brought against them in 2012 for conspiracy to possess with intent to distribute over 1000 marijuana plants. They pled guilty to that charge in 2013, and are serving long prison sentences.
The conspiracy charge also alleges that Officer Silva aided and abetted the Santiesteban family members, and their friends and associates, in their marijuana growing activities by providing them with confidential MDPD information about when MDPD narcotics detectives were investigating them, and when they might have their marijuana grow houses searched, and their marijuana plants seized; and by providing advice to the Santiestebans and their friends and associates about how to avoid, deflect, frustrate, and obstruct those MDPD investigations and by providing confidential MDPD information about suspected grow houses operated by other marijuana growers, so the Santiestebans and their friends and associates could rob those grow houses of their marijuana plants.
The extortion count of the indictment charges that Officer Silva obtained money from Santiesteban family members, “under color of official right.” It specifies that Officer Silva received $1500 cash on January 5, 2011, in Miami-Dade County for “maintaining his silence and not disclosing to any law enforcement authorities all that he knew about the illegal, criminal activities of the Santiesteban family members.”
U.S. Attorney Wifredo A. Ferrer stated, “We are especially saddened when a public servant misuses his position of trust to engage in criminal conduct. Mr. Silva’s criminal conduct not only undermined the trust of this community, but also undermined the trust of the officers who served by his side. Today’s indictment sends a message to all public officials who commit crime that they are not above the law and that they will be brought to justice.”
“Mr. Silva’s actions undermines the public’s trust in law enforcement, as well as betrays the officers and agents who worked by his side” said Special Agent in Charge George L. Piro of the FBI’s Miami Division. “Silva must now face the consequences of his actions in large part due to the dedication and commitment of the Miami Dade Police Department and the FBI.”
Director J.D. Patterson stated, “The community’s trust is vital to us and make no mistake, the Miami-Dade Police Department remains committed in seeking out, identifying, and ridding itself of individuals who violate that trust. This violation of trust tarnishes the badge of every hard-working officer who risks his/her life daily to protect this community. We appreciate the partnership and support of our federal partners during this sensitive investigation.”
If convicted, Officer Silva faces a minimum mandatory sentence of 10 years in prison up to life in prison on the aiding and abetting a conspiracy count and up to 20 years in prison on the extortion count.
An indictment is only an accusation and each defendant is presumed innocent unless and until proven guilty.
Mr. Ferrer commended the investigative efforts of FBI and MDPD. This case is being prosecuted by Assistant U.S. Attorneys Michael P. Sullivan and Andy Camacho.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Placerville Man Pleads Guilty to Filing False Tax ReturnsRead the Press Release
SACRAMENTO, Calif. —Thomas W. Stringfellow, 55, of Placerville, pleaded guilty today to two counts of willfully making false tax returns, United States Attorney Benjamin B. Wagner announced.
According to court documents, from 2006 through 2010, Stringfellow underreported his business income on tax returns by more than $1.1 million, and underreported his personal income on tax returns by more than $1 million. Stringfellow owned New Horizon Painting, and rather than depositing all of the business checks into the appropriate accounts, he cashed some of the checks and did not report those amounts as income. In total, Stringfellow’s underreporting of his business income and his personal income led to a tax loss of more than $687,000.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Jean M. Hobler is prosecuting the case.
Stringfellow is scheduled to be sentenced by Judge Morrison C. England Jr. on December 18, 2014. Stringfellow faces a maximum statutory penalty of three years in prison and a $250,000 fine on each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Pinedale, N.M., Man Sentenced for Federal Involuntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Ramsey Litzin, 20, an enrolled member of the Navajo Nation who resides in Pinedale, N.M., was sentenced this morning for his involuntary manslaughter conviction. Litzin will serve 18 months in federal prison followed by three years of supervised release.
Litzin was arrested on Nov. 15, 2013, on a criminal complaint alleging that he killed a 27-year-old Navajo man by stabbing him to death in the early hours of Nov. 12, 2013, in Pinedale, N.M., which is located within the Navajo Indian Reservation in McKinley County, N.M. Litzin was intoxicated when he killed the victim during a physical altercation between the two men.
On April 24, 2014, Litzin pleaded guilty to an involuntary manslaughter charge and admitted killing the victim by stabbing him with a knife. According to the plea agreement, Litzin armed himself with a knife prior to a physical fight with the victim and stabbed the victim approximately 23 times with the intention of causing the victim to sustain serious bodily injury and knowing his actions could result in the victim’s death. Although most of the stab wounds were superficial, at least three stab wounds contributed to the victim’s death. Litzin stated that he was angry, intoxicated and had been struck by the victim when he stabbed the victim to death.
The case was investigated by the Gallup office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Niki Tapia-Brito.
Pennsylvania Woman Sentenced to 42 Months for Role in $1.8 Million Tax Fraud ConspiracyRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Stephanie Patterson, age 41, of Royersford, Pennsylvania, was sentenced yesterday by the Honorable Leonard P. Stark, Chief Judge for the United States District Court for the District of Delaware, to 42 months imprisonment and full restitution. Earlier this year, Patterson pled guilty to violations of 18 USC § 286 (False Claims Conspiracy), 18 USC § 1341 (Mail Fraud), and 42 U.S.C. § 408(a)(7)(B) & 18 U.S.C. § 2 (Aiding and Abetting Social Security Fraud) in connection with her use of stolen identities in a tax fraud conspiracy.
The defendant participated in a tax fraud conspiracy involving the filing of more than 180 false individual federal income tax returns with the Internal Revenue Service, using stolen identities. The returns sought refunds of more than $1.8 million. The defendant and her co-conspirators received more than $800,000 in refunds to which they were not entitled,on account of the fraudulently filed returns. Among other things, the scheme jeopardized the Social Security Disability benefits of at least some of the identity theft victims. The defendant’s role in the conspiracy involved providing names and social security numbers to another co-conspirator, who used the information to file the fraudulent returns. The defendant also acted as a conduit of information between other members of the scheme.
U.S. Attorney Oberly gave the following comments: “Individuals who conspire with others to file false claims against the United States Treasury will face significant penalties, as this case demonstrates. My office is committed to prosecuting these cases, and I will seek incarceration wherever possible and appropriate.”
IRS Criminal Investigation Special Agent in Charge Akeia Conner said, “Individuals who commit refund fraud and identity theft deserve to be punished to the fullest extent of the law. IRS Criminal Investigation, along with our law enforcement partners and the United States Attorney's Office, remain vigilant in identifying, investigating and prosecuting those individuals who seek to willfully defraud the United States Treasury and blatantly disregard the victims of their schemes.”
This case is the result of an investigation conducted by the Internal Revenue Service Criminal Investigation, the United States Postal Inspection Service, the Social Security Administration Office of the Inspector General, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Lauren Paxton.
North Carolina Woman Sentenced for Role in Widespread Tax Return and Identity Fraud ConspiracyRead the Press Release
The Justice Department and the Internal Revenue Service (IRS) announced that a Durham, North Carolina, woman was sentenced today to serve 30 months in federal prison for conspiring to defraud the IRS.
Tasha Renee Smith was sentenced in Greensboro, North Carolina, by U.S. District Judge Catherine Eagles, who ordered her to serve three years of supervised release and to pay restitution to the IRS in the amount of $375,578. Smith pleaded guilty on April 8 to the conspiracy charge.
According to court documents, Smith was employed by Nothing But Taxes (NBT), a tax return preparation business with branches throughout North Carolina, for parts of the filing seasons for tax years 2005, 2006 and 2007. While working at NBT’s Durham location, Smith intentionally falsified tax returns for many clients. Common techniques she employed include the addition of false dependents to tax returns and inflating the Earned Income Tax Credit for low-income clients by adding additional, fictitious income.
According to court documents, during her second and third seasons preparing returns at NBT, Smith made extensive efforts to solicit and purchase the names, dates of birth and social security numbers of individuals in the community. Smith used the identities she purchased as false dependents on returns she prepared at NBT later that tax year. Smith charged clients a side cash payment in exchange for a false dependent, in addition to the flat return preparation fee charged by NBT.
According to court documents, during the 2008 tax filing season, Smith and two business partners opened their own tax return preparation business, Tax Wizards, with branches in Durham and Roxboro, North Carolina. Smith owned and operated the business, and hired her own return preparers. Like NBT, Tax Wizards became a center of tax fraud. Smith encouraged return preparers she hired at Tax Wizards to keep any falsifications on tax returns they prepared modest, in the $1,200 to $1,500 range, to avoid IRS scrutiny. Smith knew that return preparers she employed at Tax Wizards were falsifying returns for clients because she had cautioned the return preparers to keep any falsifications modest and because she witnessed some falsifications occur on the premises. Smith intentionally tried to avoid being physically present at Tax Wizards, in part to avoid the hassle of day-to-day management, but also because she did not want to be present while she knew fraud was occurring.
Court documents state that Smith and another person opened a tax return preparation business during the 2009 tax filing season called Keystone Tax Services, also in Durham. Keystone also became a hotbed of tax fraud. Smith also intentionally tried to avoid being physically present at Keystone for the same reasons as with Tax Wizards. Around April 2011, Smith closed down Tax Wizards and Keystone. Smith became aware that return preparers at her businesses were falsifying returns by creating fictitious Form W-2’s ostensibly issued by non-existent businesses. The falsification was so rampant and involved so much money that Smith feared IRS detection, so she shuttered Tax Wizards and Keystone.
According to court documents, during filing season for tax year 2011, in January to April 2012, Smith and other investors opened a business called Tax Solutions. Tax Solutions had four branches throughout North Carolina, specifically, in Roxboro, Durham, Burlington and Kinston. Smith was hired in exchange for a share of the business’s profits and was charged with hiring managers for the various Tax Solutions branches. She hired at least one manager whom she knew to be complicit in the fraudulent practices at Tax Wizards and Keystone. Return preparers at Tax Solutions also falsified numerous tax returns for their clients.
The case against Smith was investigated by Special Agents of IRS-Criminal Investigation. It was prosecuted by Assistant U.S. Attorney Frank Chut for the Middle District of North Carolina and Trial Attorney Jonathan Marx of the Justice Department’s Tax Division.
North Carolina Woman Sentenced for Role in Widespread Tax Return and Identity Fraud ConspiracyRead the Press Release
WASHINGTON, DC – The Justice Department and the Internal Revenue Service (IRS) announced that a Durham, North Carolina, woman was sentenced today to serve 30 months in federal prison for conspiring to defraud the IRS.
Tasha Renee Smith was sentenced in Greensboro, North Carolina, by U.S. District Judge Catherine Eagles, who ordered her to serve three years of supervised release and to pay restitution to the IRS in the amount of $375,578. Smith pleaded guilty on April 8 to the conspiracy charge.
According to court documents, Smith was employed by Nothing But Taxes (NBT), a tax return preparation business with branches throughout North Carolina, for parts of the filing seasons for tax years 2005, 2006 and 2007. While working at NBT’s Durham location, Smith intentionally falsified tax returns for many clients. Common techniques she employed include the addition of false dependents to tax returns and inflating the Earned Income Tax Credit for low-income clients by adding additional, fictitious income.
According to court documents, during her second and third seasons preparing returns at NBT, Smith made extensive efforts to solicit and purchase the names, dates of birth and social security numbers of individuals in the community. Smith used the identities she purchased as false dependents on returns she prepared at NBT later that tax year. Smith charged clients a side cash payment in exchange for a false dependent, in addition to the flat return preparation fee charged by NBT.
According to court documents, during the 2008 tax filing season, Smith and two business partners opened their own tax return preparation business, Tax Wizards, with branches in Durham and Roxboro, North Carolina. Smith owned and operated the business, and hired her own return preparers. Like NBT, Tax Wizards became a center of tax fraud. Smith encouraged return preparers she hired at Tax Wizards to keep any falsifications on tax returns they prepared modest, in the $1,200 to $1,500 range, to avoid IRS scrutiny. Smith knew that return preparers she employed at Tax Wizards were falsifying returns for clients because she had cautioned the return preparers to keep any falsifications modest and because she witnessed some falsifications occur on the premises. Smith intentionally tried to avoid being physically present at Tax Wizards, in part to avoid the hassle of day-to-day management, but also because she did not want to be present while she knew fraud was occurring.
Court documents state that Smith and another person opened a tax return preparation business during the 2009 tax filing season called Keystone Tax Services, also in Durham. Keystone also became a hotbed of tax fraud. Smith also intentionally tried to avoid being physically present at Keystone for the same reasons as with Tax Wizards. Around April 2011, Smith closed down Tax Wizards and Keystone. Smith became aware that return preparers at her businesses were falsifying returns by creating fictitious Form W-2’s ostensibly issued by non-existent businesses. The falsification was so rampant and involved so much money that Smith feared IRS detection, so she shuttered Tax Wizards and Keystone.
According to court documents, during filing season for tax year 2011, in January to April 2012, Smith and other investors opened a business called Tax Solutions. Tax Solutions had four branches throughout North Carolina, specifically, in Roxboro, Durham, Burlington and Kinston. Smith was hired in exchange for a share of the business’s profits and was charged with hiring managers for the various Tax Solutions branches. She hired at least one manager whom she knew to be complicit in the fraudulent practices at Tax Wizards and Keystone. Return preparers at Tax Solutions also falsified numerous tax returns for their clients.
The case against Smith was investigated by Special Agents of IRS-Criminal Investigation. It was prosecuted by Assistant U.S. Attorney Frank Chut for the Middle District of North Carolina and Trial Attorney Jonathan Marx of the Justice Department’s Tax Division.
North Carolina Man Pleads Guilty to Travel in Furtherance of Underage ProstitutionRead the Press Release
NORFOLK, Va. – Jeffrey Chadwick Wright, 25, of Warrenton, NC, pleaded guilty today to travel in furtherance of a criminal activity, namely underage prostitution.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, and Charles May, Acting Executive Assistant Director for the Atlantic Operations, Naval Criminal Investigative Service, made the announcement after the plea was heard by United States Magistrate Judge Douglas Miller.
Wright was indicted on May 8, 2014 by a federal grand jury on charges of sex trafficking of children; travel in furtherance of criminal activity; and concealment of evidence. Wright faces a maximum penalty of five years in prison when he is sentenced on November 14, 2014 before United States Chief District Judge Rebecca Beach Smith.
Wright, then on active duty in the U.S. Navy, assisted a 17 year old HIV positive female in running away from her foster home in Hampton Roads. Wright then paid for backpage.com advertisements for escort services for the 17 year old in Virginia, Maryland and North Carolina. Wright was arrested on state charges on March 3, 2014, when he and the victim were discovered by the Naval Criminal Investigative Service in base housing on Naval Station Norfolk.
This case was investigated by the Naval Criminal Investigative Service (NCIS) and the Virginia Beach Police Department. Assistant United States Attorney Elizabeth M. Yusi and Special Assistant United States Attorney Christopher A. George 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.Tweet
Newport News Man Convicted of Decade-Long Drug ConspiracyRead the Press Release
NEWPORT NEWS, Va. – Kelvin L. Brown (a.k.a. “Doom”), 34, of Newport News, was convicted yesterday by a federal jury of participating in a decade-long conspiracy to distribute cocaine and crack cocaine. Brown also was convicted of two counts of possessing firearms in furtherance of a drug trafficking crime, and being a felon in possession of a firearm.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Royce E. Curtin, Special Agent in Charge of the FBI’s Norfolk Field Office; and Richard W. Myers, Chief of Newport News Police, made the announcement after the verdict was accepted by U.S. District Judge Robert G. Doumar.
According to court records and evidence at trial, Brown was arrested by Newport News police on Sept. 13, 2013 in a barricaded apartment with a firearm, a scale and cocaine. The evidence showed that Brown and his co-conspirators distributed crack and powder cocaine in the Newport News area beginning in the early 2000s, and they possessed firearms in order to protect the drug conspiracy and its proceeds. Brown also made threats against a cooperating witness during the course of the case.
Brown will be sentenced on Dec. 8, 2014. On the drug conspiracy conviction, Brown faces a mandatory term of five years and a maximum penalty of 40 years in prison. On the two counts of possessing a firearm in furtherance of a drug trafficking crime, Brown faces a combined mandatory minimum term of 30 years in prison. On the felon-in-possession conviction, Brown faces a maximum of ten years in prison.
This investigation was led by FBI and the Safe Streets Task Force, with assistance from the Newport News Police, Virginia State Police, and Newport News Commonwealth Attorney’s Office. Managing Assistant U.S. Attorney Howard J. Zlotnick and Trial Attorney Joseph K. Wheatley from the Organized Crime and Gang Section of the Justice Department’s Criminal Division are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:13-cr-110.New Hampshire Man Indicted for Tax EvasionRead the Press Release
A former Northfield, New Hampshire, man was indicted on three counts of tax evasion for tax years 2008, 2009 and 2010, the Justice Department and Internal Revenue Service (IRS) announced today.
Ronald W. Martin was indicted July 23 by a federal grand jury in the District of New Hampshire. The indictment was unsealed today.
The indictment alleges that Martin evaded federal income taxes from 2008 through 2010 on approximately $400,000 of income by directing earned income to be paid to a third party and depositing only a fraction of his income into his business bank account in an effort to conceal the source of this income. According to the indictment, Martin operates the company Martin Construction.
This case was investigated by special agents of IRS – Criminal Investigation and prosecuted by Assistant U.S. Attorney Mark Zuckerman and Senior Litigation Counsel Corey J. Smith of the department’s Tax Division.
Mexican National Sentenced to Fourteen Years in Prison for Methamphetamine TraffickingRead the Press Release
SAN JOSE – Jose Corona-Mata was sentenced yesterday to 14 years in prison for conspiracy to possess with intent to distribute and to distribute methamphetamine, announced United States Attorney Melinda Haag and Drug Enforcement Administration Special Agent in Charge Jay Fitzpatrick.
Corona-Mata previously pleaded guilty pursuant to a plea agreement on April 9, 2014, to one count of conspiracy to possess with intent to distribute and to distribute methamphetamine, in violation of 21 U.S.C. § 841(a)(1), and one count of illegal entry into the United States following deportation, in violation of 8 U.S.C. § 1326. According to the plea agreement, Corona-Mata admitted that, between May and November of 2012, he conspired with others to distribute methamphetamine in Northern California. When law enforcement officers executed a search warrant at his residence in San Jose, Calif., on Nov. 30, 2012, they found $92,574 and pay/owe sheets indicative of drug trafficking. Methamphetamine seized elsewhere as evidence of the conspiracy in this case was 97-99% pure.
Corona-Mata also admitted that he had previously been deported from the United States to Mexico five times between 2003 and 2011, and that he had previously been convicted of a felony drug trafficking offense in 2010.
Corona-Mata, 32, of Michoacàn, Mexico, was indicted by a federal grand jury on Feb. 28, 2013, for conspiring to distribute methamphetamine, and for illegal entry into the United States following deportation.
The sentence was handed down by the Honorable Lucy H. Koh, U.S. District Court Judge. In addition to the 14-year sentence for the drug conspiracy, Judge Koh also sentenced Corona-Mata to a concurrent 46-month prison sentence for the violation of 8 U.S.C. § 1326, and a 5 year period of supervised release. The defendant has been in federal custody since Nov. 30, 2012.
Richard Cheng and Chinhayi Cadet are the Assistant U.S. Attorneys who are prosecuting the case. This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
(Corona-Mata second superseding indictment )
Man who Set Fire to Neighbours Nightclub on New Year’s Eve Sentenced to Ten Years in PrisonRead the Press Release
A former Bellevue resident who set fire to a Seattle nightclub just after midnight on New Year’s Eve 2014 was sentenced today in U.S. District Court in Seattle to ten years in prison for arson, announced U.S. Attorney Jenny A. Durkan. MUSAB MOHAMMED MASMARI, 30, pleaded guilty in May 2014, admitting that he smuggled a one gallon tank of gasoline into the nightclub and attempted to set the club on fire. At the sentencing hearing U.S. District Judge Ricardo S. Martinez said, “but for the actions of some very quick thinking folks, we could have a very serious tragedy.” Judge Martinez said MASMARI deserved an exceptional sentence of ten years based on the number of people in the nightclub, that it was New Year’s Eve, the busiest night of the year, and that “it was a few seconds from causing significant injury or death.”
“The Court sent a clear message: this conduct cannot be tolerated. Motivated by ignorance and intolerance, this defendant put more than 700 lives at risk when he purposely started a fire at a crowded nightclub on New Year’s Eve,” said U.S. Attorney Durkan. “We are fortunate that the workers acted so quickly – or we may have had a horrific tragedy. I thank them for their actions and appreciate the dedicated work of the Seattle Police Department and FBI in holding this defendant accountable.”
“This important case shows the utility of a close federal-local law enforcement partnership,” said King County Prosecuting Attorney Dan Satterberg. “It was an exhaustive effort by federal agents and SPD, with invaluable assistance from prosecutors in each system.”
According to the facts admitted in the plea agreement, MASMARI carried a one gallon tank of gas into the club in Seattle’s Capitol Hill neighborhood around 11:30 PM on December 31, 2013. He concealed the gas tank in a shopping bag. Just after midnight, MASMARI poured some of the gasoline on a staircase in Neighbours and hid the gas container behind a planter at the top of the stairs. The container was still more than half full of gasoline. At 12:06 AM, MASMARI lit the gas he had poured on the stairs and hastily left the club. MASMARI was identified as a suspect following a review of surveillance videos. He was arrested by the Seattle Police Department and FBI on February 1, 2014 as he was preparing to travel to Sea-Tac Airport for international travel.
Because of the differences between state and federal law, federal prosecution ensured a longer sentence than was available in state court.
The case was investigated by the Seattle Police Department and the FBI.
The case is being prosecuted by Assistant United States Attorney Todd Greenberg and Senior Deputy King County Prosecuting Attorney Susan Storey.Man Pleads Guilty to Traveling to Maryland to Engage in Sexual Activity with a MinorRead the Press Release
Gregory King, 28, of Washington, D.C., pleaded guilty today in connection with contacting a 13-year-old girl over the Internet and traveling across state lines to engage in sexual activity with her.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, United States Attorney Rod J. Rosenstein of the District of Maryland and Special Agent in Charge Stephen E. Vogt of the FBI’s Baltimore Division made the announcement.
King pleaded guilty to one count of coercion of a minor to engage in sexual activity and one count of traveling with intent to engage in illicit sexual contact with a minor. He was initially charged by indictment on Feb. 14, 2014.
According to King’s plea agreement, on Oct. 9, 2013, he initiated a chat with a girl on a social networking site whose profile indicated that she was 13 years old. Throughout October and November 2013, King and the victim exchanged sexually explicit photographs and engaged in sexually explicit conversations. On Oct. 30, 2013, King chatted with the victim about coming to her house in Maryland, telling her that he would take a bus from Washington, D.C. The victim provided King with her address, but King was not able to get to the victim’s house that night. King continued to chat with the victim and on Nov. 21, 2013, shortly after the victim’s 14 th birthday, again discussed coming to her home. King took a bus from Washington, D.C. on the same date and met the victim at her home, where he spent the night. King was arrested on Jan. 19, 2014.
As part of his plea agreement, King must register as a sex offender under the Sex Offender Registration and Notification Act (SORNA). Sentencing is scheduled for Oct. 15, 2014, before U.S. District Judge Peter J. Messitte.
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 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.
This case was investigated by the FBI and the Laurel Police Department. This case is being prosecuted by Trial Attorney LisaMarie Freitas of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Kristi O’Malley of the District of Maryland.Man Charged with Inserting Needles into Packaged MeatsRead the Press Release
Follow @SDILNewsRonald G. Avers, 68, of Belleville, Illinois, was charged by criminal complaint on July 30, 2014, with seven violations of the Product Packaging Protection Act of 2002, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Avers appeared in federal court in East St. Louis earlier today for an initial appearance. A detention hearing will be held on August 4, 2014. Each violation of the Act carries a term of imprisonment of up to ten years, a fine of up to $250,000, and a term of supervised release of up to three years.
The complaint alleges that the Federal Bureau of Investigation learned on July 9, 2014, from Shop ‘n Save that needles had been found in packaged meat products offered for sale. Shop ‘n Save reported seven incidents, all of which were associated with its location on North Belt West Road in Belleville. The recoveries were made during the time period of May, 2013, to July, 2014. The complaint alleges that one customer found a needle in her mouth while eating; another reported being stuck in the hand. In other instances, customers said that they found the needles in purchased meat products but were not injured. On one occasion, an employee detected the presence of a needle in a meat product.
“Shop ‘n Save conducted an internal investigation and provided information to the Federal Bureau of Investigation which directly led to the identification of Ronald G. Avers as a suspect.” said United States Attorney Wigginton. “I want to assure the public that, while our investigation is ongoing, we do not, at this time, believe that the suspect acted at any other markets or stores, or that he was working with any other persons. I commend the time, money and effort that Shop ‘n Save expended in assisting investigators in this case. As a corporate citizen, their assistance to law enforcement was invaluable.”
A criminal complaint is a preliminary charging document. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The case is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Suzanne M. Garrison.
Louisiana State Bond Commission Agrees to Settlement to Resolve Housing Discrimination LawsuitRead the Press Release
The Justice Department announced today that the United States District Court for the Eastern District of Louisiana has approved its settlement with the Louisiana State Bond Commission resolving the department’s housing discrimination lawsuit. The lawsuit alleged that the commission violated the Fair Housing Act and the Americans with Disabilities Act by adopting a moratorium on affordable housing financing in 2009. The moratorium blocked financing for a proposed 40-unit affordable housing project known as the “Esplanade.” Twenty of these units would provide permanent supportive housing to persons with disabilities.
Prior to the entry of the settlement by the court, the commission voted to approve financing for the Esplanade project and lifted the moratorium on affordable housing projects. Under the settlement, the commission agrees to refrain from further obstructing or delaying financing for the Esplanade and from adopting any future policy that would prevent consideration of affordable housing in New Orleans, including affordable housing for persons with disabilities. The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. Title II of the Americans with Disabilities Act prohibits governments from discriminating on the basis of disability in administering their zoning laws.
“We are very pleased to have worked with the Louisiana State Bond Commission to reach an agreement that will not only enable the Esplanade to be built, but that will also ensure that other affordable housing projects that include housing for persons with disabilities in New Orleans will not be subject to any moratorium,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division.
“Nondiscriminatory housing is a fundamental right of the citizens of New Orleans, and this settlement agreement continues the efforts to rebuild and improve a housing inventory ravaged by Hurricane Katrina,” said U.S. Attorney Kenneth Allen Polite Jr. for the Eastern District of Louisiana.
The City of New Orleans was previously named as a defendant. In April 2014, the department and the city reached a settlement resolving the department’s claims. Approved by the court, the settlement determines that the city must permit the Esplanade project to proceed and must provide all appropriate permits for the project. The settlement also required that the city develop 350 additional permanent supportive housing units, amend its Comprehensive Zoning Ordinance to allow permanent supportive housing, continue its work to prepare and implement a reasonable accommodation policy approved by the United States, conduct fair housing training for key city officials and be subject to reporting requirements.
More information about the Civil Rights Division and the laws it enforces is available at this website .
KC Man Sentenced to 60 Years in Prison for Drug-trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for drug-trafficking and illegally possessing firearms after shooting at pursuing police officers during a foot chase that ended in his arrest.
Antonio M. Taylor, 30, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to 60 years in federal prison without parole.
On Feb. 26, 2014, Taylor was found guilty at trial of two counts of possessing crack cocaine with the intent to distribute and one count of possessing crack cocaine, marijuana and PCP with the intent to distribute. He was found guilty of three counts of possessing firearms in furtherance of drug-trafficking crimes and three counts of being a felon in possession of a firearm.
According to evidence presented during the trial, law enforcement officers were conducting surveillance on Taylor’s residence on July 2, 2012. Taylor, who had an active Jackson County warrant for a violation of felony probation, left the apartment and walked toward a vehicle in the parking lot. When police officers approached him, Taylor ran away and the officers pursued him on foot.
During the pursuit, Taylor changed directions and began running toward a pursuing officer. Taylor was holding an FNH 9mm semi-automatic handgun and he fired at least one round at the officer, who returned fire. The officer saw Taylor drop a large bag of crack cocaine (later determined to be 32.9 grams) as he ran. The officer took cover near a residence but continued to engage in the foot pursuit. When the officer rounded the edge of the residence, he saw Taylor attempting to climb a fence near the rear of the residence. Taylor fired his handgun again at the officer, who again returned fire. Taylor jumped the fence and stumbled and fell as he attempted to get to his feet. Taylor again turned toward the officer with the firearm still in his hand. The officer fired his firearm two more times at Taylor, at which time Taylor dropped his firearm. Taylor, who suffered several gun-shot wounds, was taken into custody and transported to the emergency room. The officer was not injured.
Prior to this incident, police officers saw Taylor conducting a drug transaction on March 7, 2012. Officers approached Taylor’s car and Taylor drove off. A high speed chase ensued and Taylor committed numerous traffic violations during the chase. Taylor jumped out of the Jeep in the area of 81st and Brooklyn and ran. Officers searched for Taylor and found him hiding in a storm drainage area. Officers found a loaded Glock .40-caliber pistol on the ground nearby. When they searched Taylor’s vehicle, officers found a plastic baggie that contained 20.62 grams of crack cocaine.
On June 5, 2012, police officers were called to a vacant house in response to a report of a suspicious vehicle. They contacted Taylor, the driver and sole occupant of the vehicle. When officers asked Taylor to step out of the vehicle, he put the vehicle in drive and drove into the back yard of a residence. Taylor crashed the vehicle head-on into a cinder block wall and ran from the scene. Officers found 80 grams of marijuana, a brown bottle containing PCP, .8 gram of crack cocaine, 12 unknown pills, and a Glock .40-caliber pistol in the vehicle.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Taylor has a prior felony conviction for shooting from a vehicle, four prior convictions for assault and five prior convictions for armed criminal action.
This case was prosecuted by Assistant U.S. Attorneys Brent Venneman and Patrick C. Edwards. It was investigated by the Kansas City, Mo., Police Department, the U.S. Postal Inspection Service and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Justice Department Announces $1.5 Million Paid to Victims of Discrimination by Quiktrip CorporationRead the Press Release
The Justice Department today announced the payment of more than $1.5 million in damages under a consent decree previously reached with QuikTrip Corporation. The payments were made by QuikTrip to compensate 47 individuals with disabilities who experienced discrimination at QuikTrip gas stations and convenience stores across the country, in violation of Title III of the Americans with Disabilities Act (ADA).
QuikTrip owns and operates nearly 700 gas stations, convenience stores, travel centers and truck stops throughout the Southern, Midwestern and Southwestern United States. The consent decree, which was entered by the U.S. District Court for the District of Nebraska in July, 2010, required QuikTrip to make all of its facilities accessible, adopt accessibility policies and pay a $55,000 civil penalty to the United States. QuikTrip has made all changes required in the consent decree to make their properties ADA accessible. “Today is an important milestone in making whole individuals with disabilities who experienced repeated and extensive accessibility barriers at QuikTrip facilities across the United States,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “QuikTrip should be commended for working diligently with the department to overhaul its gas stations, stores and policies to comply with the ADA.”
“Ensuring access to QuikTrip facilities by individuals with disabilities is a significant step by QuikTrip and a win-win resolution,” said United States Deborah R. Gilg for the District of Nebraska. “Individuals with disabilities will no longer encounter barriers to access at these facilities and QuikTrip can profit by providing services to this segment of our population.”
The consent decree was reached under Title III of the ADA, which prohibits discrimination against individuals with disabilities by certain businesses that are open to the public, including gas stations, convenience stores and other retailers, both large and small. More information about the Civil Rights Division and the laws it enforces is available at the website www.justice.gov/crt. More information about this Consent Decree with QuikTrip may be found at www.ada.gov or by calling the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TTY).
Jury Convicts St. Anne Man for Heroin Trafficking and Felon in Possession of A FirearmRead the Press Release
Urbana, Ill. – A jury deliberated for approximately four hours this afternoon before convicting JB Brown, Jr., aka Cocoa, 37, of the 400 block of Circle Drive, St. Anne, Ill., of federal drug trafficking and possession of a firearm by a felon, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois.
During the trial, which began on Tuesday, Jul. 29, the government presented evidence to establish that in June 2013, Brown possessed more than 100 grams of heroin, which he intended to distribute, and a loaded Glock .45 caliber semi-automatic pistol at a residence in the 7400 block of East First Street in St. Anne.
Following the jury’s return of the guilty verdicts, Brown, who had been released on bond, was remanded to the custody of the U.S. Marshals Service. Sentencing for Brown is scheduled for Dec.1, 2014.
The statutory penalty for possession of 100 grams or more of heroin with the intent to distribute is a minimum 10 years in prison and up to life in prison, and a fine of up to $8 million. The maximum statutory penalty for unlawful possession of a firearm by a felon is 10 years in prison, and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller. The charges are the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Kankakee Area Project Safe Neighborhoods Task Force, and the Kankakee County Major Crimes Task Force.Jury Convicts Former Owner of Valley Dairy, Inc. of False Statements to the USDA, Rural DevelopmentRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that on July 30, 2014, an Anchorage jury convicted a Wasilla woman, Karen Olson, 68, of one count of false statements to influence the United States Department of Agriculture, Rural Development Program, and one count of misprision of a felony. The convictions essentially involve Ms. Olson taking steps to cover up fraud perpetuated by Kyle Beus, the former President of Valley Dairy, Inc., in part by submitting false and fraudulent documents to the USDA. In May 2014, Beus was convicted of wire fraud and false statements to influence USDA, Rural Development (RD).
According to Assistant U.S. Attorney Retta Randall who prosecuted the case, trial evidence demonstrated that in 2007, through an appropriation, a one-time grant offering of $650,000 was made available by USDA, RD, to fund one or more small dairy projects in an effort to support and expand the dairy industry in Alaska.
Through that appropriation, Kyle Beus received a grant in the amount of $168,000 to support an ice cream and cheese making facility, and Rob Wells & Co., LLC, received $475,000 to support a milk manufacturing facility. Karen Olson wrote the grant application for Rob Wells, and unbeknownst to the USDA, she was a 50/50 partner in the Wells grant. Karen Olson was the former Alaska State Executive Director of the USDA, Farm Service Agency, from April 1993 through February 2001.
In November 2007, Olson, Wells, and Beus decided to join their projects and locate them in one dairy processing facility which became known as Valley Dairy, Inc., located at 7805 Palmer Wasilla Highway in Palmer, Alaska. They agreed that Beus would be the manager in charge of the day-to-day operations of the Valley Dairy, and he would manage the disbursement of USDA, RD, grant funds.
In September 2008, Olson discovered that Beus had inflated invoices which had been submitted by Olson and Wells to USDA, RD, and Beus had received kickbacks of grant monies. Some of those monies were diverted to assist his financially troubled restaurant, Klondike Creamery/Teeland’s. Olson became aware that because Beus had diverted grant funds to his personal use, funds were not available to pay the milk producers who were owed over $200,000, or to pay over $450,000 owed to construction vendors who had built the Valley Dairy.
Hence, within months after the Valley Dairy became operational, and due in part to fraud by Beus, the Valley Dairy was in jeopardy of being shut down. Subsequently, Karen Olson was named CFO for the Valley Dairy and Beus’ signature authority was removed from the bank accounts; however, he remained President of Valley Dairy, Inc.
Instead of informing USDA, RD, or law enforcement of Beus’s fraud, Olson sought USDA, RD’s assistance in securing a loan from the State of Alaska to replace the loss of funds. Olson submitted financial documents to USDA, RD, which were inaccurate and covered up the losses caused by Beus. The documents influenced USDA, RD, to allow the State to hold a first lien position on equipment in the Valley Dairy which had been purchased or obtained with federal grant funds. The State of Alaska then authorized loans to the Valley Dairy, some of which were used to pay vendors who should have been paid with the federal grant funds diverted by Beus. Within three months the Valley Dairy was once again in a poor financial state, and the dairy closed in 2012.
The jury acquitted Olson on a third count in the indictment charging her with mail fraud. Olson remains out on bail and her sentencing is scheduled for October 24, 2014.
As a result of her conviction for submitting false documents to the USDA to influence it to give up its first lien position, Olson faces a maximum sentence of 30 years of imprisonment, to be followed by five years of supervised release. She also may be fined up to $1 million. For taking actions to cover up Beus’ fraud – the misprision of felony count – Olson faces a maximum sentence of three years of imprisonment, to be followed by one year of supervised release and a potential maximum fine of $250,000.
Ms. Loeffler commends the U.S. Department of Agriculture, Rural Development, and the Federal Bureau of Investigation for the investigation of this case.
Judge Sentences Heroin Dealer to 33 Months in PrisonRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been sentenced in federal court to 33 months in prison and three years supervised release on her conviction of distribution of heroin, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Desalynn L. Coleman, 33.
According to information presented to the court, on Oct. 30, 2012, Coleman distributed less than 100 grams of heroin.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation leading to the successful prosecution of Coleman.
Jerseyville Woman Sentenced for Defrauding Former Employer of over $440,000.00Read the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on July 31, 2014, Stacy Jo Kanallakan, 35, of Jerseyville, Illinois, was sentenced in United States District Court in East St. Louis, Illinois on a one-count information charging that she engaged in a scheme to commit wire fraud. The district court sentenced Kanallakan to serve 33 months in federal prison, to be followed by 3 years mandatory supervised release. The district court ordered Kanallakan to pay $442,211.91 in restitution to her former employer. The court also ordered Kanallakan to pay a special assessment of $100.00.
At her plea on May 2, 2014, Kanallakan admitted that while working as the bookkeeper and accountant for Telsar Laboratories, Inc. (TLI), she fraudulently caused electronic deposits to be made to her own accounts and also caused fraudulent payments to be made to her by check out of TLI accounts. TLI was at the time a business located in Madison County, Illinois and the wire communications in furtherance of her scheme to defraud TLI utilized a bank in Brookfield, Wisconsin. Kanallakan admitted that between September of 2005 and October of 2011, she defrauded the business and its owner of $442,211.91.
The investigation was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Ranley R. Killian.
Jefferson City Man Indicted for MethRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man was indicted by a federal grand jury today for possessing methamphetamine with the intent to distribute.
Christopher Eugene Ronimous, also known as “Rodney,” 38, of Jefferson City, was charged in an indictment returned by a federal grand jury in Jefferson City. Today’s indictment replaces a federal criminal complaint that was filed against Ronimous on July 8, 2014.
The federal indictment alleges that Ronimous was in possession of 50 grams or more of methamphetamine with the intent to distribute on July 7, 2014.
According to an affidavit filed in support of the original criminal complaint, Jefferson City police officers stopped a vehicle for improper registration. Ronimous, a passenger in the vehicle, got out of the car while officers conducted a search. While standing outside the vehicle, the affidavit says, an Altoids can fell from Ronimous’s shorts. Inside the can was approximately five grams of methamphetamine and three “hits” of LSD.
Ronimous was arrested and transported to the police station, according to the affidavit, where he was observed reaching into his crotch area while inside an interview room. An officer conducted a more thorough search of Ronimous and discovered two bags containing approximately 50 additional grams of methamphetamine.
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 Special Assistant U.S. Attorney Stuart J. Zander. It was investigated by the Drug Enforcement Administration and the Jefferson City, Mo., Police Department.Indictment for Marijuana Cultivation in Sierra National ForestRead the Press Release
FRESNO, Calif. — A federal grand jury returned a five-count indictment today against Jose Antonio Reyna-Chavez (Reyna), 18, of Michoacàn, Mexico, charging him with conspiring to manufacture, distribute, and possess with intent to distribute marijuana, manufacturing marijuana, possessing marijuana with intent to distribute, damaging public land and natural resources, and avoiding immigration officers, United States Attorney Benjamin B. Wagner announced.
According to court documents, Reyna was involved in the cultivation of 1,539 marijuana plants in the Blue Canyon area of the Sierra National Forest in Fresno County when he attempted to flee from law enforcement officers. The cultivation operation was within three miles of a public campground and about seven miles from Shaver Lake. The marijuana cultivation caused significant damage to the land and natural resources of the forest. Six large helicopter net loads of material and debris, including fertilizer, propane tanks, and poisons, were removed from the grow site.
This case is the product of an investigation by the U.S. Forest Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Fresno County Sheriff’s Office. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Reyna has been ordered detained pending trial and is scheduled for arraignment and plea on the indictment on August 6, 2014.
If convicted of the more serious drug offenses, Reyna faces a minimum statutory penalty of 10 years in prison, a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Illegal Alien and Convicted Felon Sentenced to 51 Months in Prison for Illegally Entering the United StatesRead the Press Release
St. Thomas, USVI- District Court Judge Curtis V. Gomez sentenced Ray Anthony Wayne, 43, to 51 months in prison and three years of supervised release for illegally reentering the United States after having been deported for a prior felony conviction, United States Attorney Ronald W. Sharpe announced.
Court records show that on December 31, 2013, Wayne was arrested by U.S. Customs and Border Protection (CPB), after he presented a fraudulent Virgin Islands birth certificate and driver’s license while attempting to board a flight to Miami at Cyril E. King Airport located on St. Thomas. Court records also show that Wayne was deported from the United States on June 3, 2013, after being convicted of possession with the intent to distribute cocaine, a felony offense. Under federal law, deported felons, such as Wayne, are prohibited from re-entering the United States. On March 27, 2014, Wayne pled guilty to illegally entering the United States after having been deported. Wayne, who has been detained since his arrest, was remanded to the custody of the U.S. Marshals Service at the conclusions of today’s sentencing hearing.
The case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI). The case was prosecuted by Assistant U.S. Attorney Ishmael A. Meyers, Jr.
Hudson County, N.J., Man Indicted for Robbery Spree in Bergen and Hudson CountiesRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was indicted today in connection with his alleged role in an armed robbery spree of banks and commercial establishments in Bergen and Hudson counties in July 2013, U.S. Attorney Paul J. Fishman announced.
Gary Bohanan, 44, of North Bergen, New Jersey, is charged by superseding indictment with conspiracy to commit armed bank robberies and Hobbs Act robberies, two counts of armed bank robbery, and two counts of armed Hobbs Act robbery.
Bohanan and Angel Feliu, 20, of North Bergen, were charged by indictment on April 1, 2014, with committing two bank robberies in Secaucus and Fairview, New Jersey. In a separate proceeding today, Feliu pleaded guilty to an information charging him with two counts of armed bank robbery for his role in those robberies. Bohanan will be arraigned in Newark federal court on the superseding indictment before U.S. Judge Claire C. Cecchi at a date and time to be determined.
According to documents filed in this case and statements made in court:
On July 10, 2013, Bohanan and one other individual, both wearing masks, entered a McDonald’s restaurant in North Bergen. Bohanan brandished a handgun and demanded money from the employees of McDonald’s. Bohanan and the other individual then took $1,600 from the cash registers and fled in a car driven by a third individual.
On July 18, 2013, Bohanan and other individuals cased Le Chateau restaurant in West New York, New Jersey, for the purpose of robbing it. Bohanan and the other individuals waited for an agent of the restaurant to close the restaurant, followed her home, and robbed her at gunpoint of $6,000 of proceeds from the restaurant outside her home.
On July 22, 2013, Bohanan, Feliu, and Josephine Chenet, 45, of North Bergen, allegedly robbed the Sovereign Bank (now Santander Bank) in Secaucus. (Charges from the April 1, 2014 indictment that had been pending against Chenet for her role in the bank robberies have been dismissed due to her death on June 22, 2014.)
On July 22, 2013, Bohanan and Feliu entered the bank at 10:11 a.m. Both men wore latex gloves and masks. Once inside the Sovereign Bank, Bohanan brandished a black handgun, jumped over the counter and proceeded to empty two drawers of money into a black bag, while pointing the handgun at bank tellers. As Bohanan emptied the drawers, Feliu stood guard. Bohanan and Feliu then fled the bank with $21,961.
On July 26, 2013, Bohanan, Feliu, and Chenet robbed the TD Bank, located in Fairview, New Jersey. Bohanan and Feliu entered the Bank at 9:48 a.m. Bohanan and Feliu both wore latex gloves and masks. Feliu, however, was captured by the Bank’s video surveillance system before he pulled the mask on. Feliu brandished a knife at employees and customers. Bohanan brandished what appeared to be a black handgun, but was later identified as an air pistol. Bohanan then jumped over the counter and emptied two drawers of money into a black bag, while pointing the air pistol at bank tellers. As Bohanan emptied the drawers, Feliu stood guard and held bystanders back by brandishing the knife.
Bohanan and Feliu fled on foot and were followed by concerned citizens and victims of the bank robbery. Bohanan encountered a white GMC Savana van, pointed the air pistol at the driver and ordered the driver out. Bohanan then attempted to flee the area by driving away in the van, but crashed it into a nearby structure after a short distance, at which point he attempted to flee the area on foot.
Law enforcement and concerned citizens located Bohanan hiding under a truck, which was parked a short distance away. He had with him a black bag containing a black air pistol and money covered with red dye. Feliu separated from Bohanan after the bank robbery and was also arrested shortly after the bank robbery.
The two counts of armed bank robbery with which Bohanan is charged each carry a maximum penalty of 25 years in prison and a fine of $250,000. The counts of Hobbs Act robbery with which Bohanan is charged each carry a maximum penalty of 20 years in prison. The count of conspiracy with which Bohanan is charged carries a maximum penalty of five years in prison.
Feliu also pleaded guilty to one count of conspiracy to commit armed bank robberies and Hobbs Act robberies. The counts of armed bank robbery that Feliu pleaded guilty to each carry a maximum penalty of 25 years in prison and a fine of $250,000. The count of conspiracy that Feliu plead guilty to carries a maximum penalty of five years in prison. Feliu is detained pending sentencing, which is scheduled for Nov. 20, 2014.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation. He also thanked the Fairview, North Bergen, and Secaucus police departments for their contributions to the case.
The government is represented by Assistant U.S. Attorney Francisco J. Navarro of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations and the defendants are considered innocent unless and until proven guilty.
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Defense counsel: Feliu: Kevin F. Carlucci Esq., Assistant Federal Public Defender
Bohanan: Carl Herman Esq., West Orange, N.J.
Chenet: Michael Gilberti Esq., Little Silver, N.J.Bohanan, Gary Superseding Indictment
Feliu, Angel Superseding InformationHouston Man Gets 25 Years for Producing Child PornographyRead the Press Release
HOUSTON – Daniel M. Layne, 34, of Houston, has been ordered to federal prison following his conviction of production of child pornography, announced United States Attorney Kenneth Magidson. Layne pleaded guilty Friday, Feb. 14, 2014.
Today, U.S. District Judge David Hittner handed Layne a total sentence of 300 months in prison. At the hearing, additional information was presented including evidence that Layne had been communicating over the Internet with other underage girls and discussing engaging in sexual activity with them. Judge Hittner further ordered Layne to be placed on supervised release for life following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
The investigation began in Maine when the mother of a 14-year-old girl discovered a motel key card in her daughter’s pants pocket and sexually graphic text messages on her cell phone. She contacted local authorities who then determined that Layne had traveled to Maine after meeting the girl over the Internet. The investigation revealed Layne had taken sexually explicit photos of the young girl.
As a result of the information gathered in Maine, authorities in the Houston area conducted a search at Layne’s residence on Sept. 24, 2013, at which time they seized computers, a tablet and cell phones from the house. A forensic analysis revealed images of the 14-year-old on the tablet and a cell phone.
Layne was arrested on the federal charges in October 2013 and has been in custody since that time where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations and the Harris County Sheriff’s Office investigated the case in conjunction with the Houston Metro Internet Crimes Against Children Task Force and the Westbrook, Maine, Police Department.
This case, prosecuted by Assistant United States Attorney Robert Stabe, 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."
Hogsett Announces Sentencing for Heroin Distribution and Illegal Gun ChargesRead the Press Release
Hogsett continues crackdown on illegal drugs and illegal gun possession
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced the sentence of Anthony Lomax, 39, Indianapolis, today. Lomax was sentenced to 400 months (over 33 years) in federal prison by District Court Judge Sarah Evans Barker.
Lomax was tried by Hogsett’s office in February for twenty criminal counts including conspiring to possess heroin, possession with intent to distribute heroin, distribution of heroin and illegal possession of firearms. Lomax, his brother Brandon Lomax and Demond Glover were all found guilty of their involvement in the conspiracy.
“Heroin is a dangerous drug that has ravaged our communities,” said Hogsett. “Putting those who infect our streets with this terrible drug behind bars has been and will continue to be is a top priority of this office.”
“Those who call for longer sentences for the “worst of the worst” have not been paying attention to what the United States Attorney’s Office has been doing for three years as part of our Violent Crime Initiative. Thirty-three years is a long time.”
Lomax’s sentence came after a jury verdict found that he and the other defendants conspired between 2009 and 2012 to distribute kilogram-quantities of heroin in and around the Haughville area of Indianapolis. The trio covered their operations through a shell business, which was discovered by law enforcement investigators.
Heroin use has been on the rise in Indianapolis and other major cities in recent years. As prescription drug addiction and abuse spread across the state and country, users switched to heroin as opioid pills became more expensive and the cost of heroin has dropped.
“The heroin epidemic knows no geographic boundaries and is blind to what tax bracket you happen to be in,” Hogsett said.
According to Assistant United States Attorneys Michelle Brady and Melanie Conour, who prosecuted the case for the government, Lomax will serve 10 years supervised release after his term of imprisonment.