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Friday 6 June 2014
Two Local Businessmen Plead Guilty to Multiple Federal Fraud Charges Involving Elderly Victims in St. LouisRead the Press Release
St. Louis, MO – ROBERT PALMER and MARK DRIVER plead guilty late Thursday to defrauding numerous elderly victims of approximately $3,000,000, beginning in 2004 and continuing through 2010.
According to the indictment, Princeton Partnership, LLC, was an insurance brokerage business involved in the sale of life insurance products. Princeton operated out of offices in the Hill area of St. Louis, at 1928 Marconi Street (also known as 5149 Daggett Avenue). Palmer and Driver both ran the day-to-day operations of Princeton, solicited customers, marketed the company's services and had financial oversight of the company with authorization over the company's two operating bank accounts. Palmer and Driver solicited Princeton customers with the false promises that they would invest the customers' funds in suitable investments, including but not limited to real estate, stocks and life insurance annuities. Examples of those victims include:
During 2004 Palmer solicited several members of a family who had received funds upon the death of their elderly aunt with the false representation that Princeton would place those funds in a real estate investment for the benefit of those customers. Based upon his false representations, the family members transferred some or all of those funds to Princeton.In 2005 Palmer solicited funds from an elderly individual and her family with the false representation that they would place those funds in a real estate investment for her benefit. Based on those representations the family transferred her funds to Princeton.
During 2006 through 2010 Palmer solicited investment funds from two elderly sisters with the false representations that Princeton would make suitable investments with those funds. They transferred their funds and control of their stock holdings to Princeton and, later Palmer and Driver sold and liquidated the stocks and persuaded one of the sisters to liquidate a life insurance policy as well and transfer the funds to Princeton.
During 2007 through 2009 Driver solicited investment funds from an elderly woman who transferred her funds, as well as control of her stock holdings to Princeton.
In 2006, an elderly woman was solicited by Driver to invest her personally held funds in a series of life insurance annuities through Princeton. Princeton used her funds to purchase four (4) life insurance annuities. As a further part of the scheme, during in or about 2008 and 2009, at Driver’s direction, she liquidated three (3) of her life insurance annuities and provided those funds to Princeton based upon the false representations that the funds would be placed in suitable investments for her benefit.
Most or all of the funds transferred to Palmer, Driver and Princeton by the numerous victims were used by Palmer and Driver for their own personal uses and the general operating expenses of Princeton. Palmer and Driver also engaged in Ponzi-type transactions where they used some funds provided by new customers to pay old customers who falsely believed they were receiving the returns on their purported investments.
In all cases Palmer and Driver obtained approximately $3,000,000 from Princeton customers based upon their false representations, which they used for their own personal use and for the expenses of their company Princeton.
Palmer, Kansas City, Missouri; and Driver, St. Louis, Missouri, pled guilty to all charges contained in the indictment, including two felony counts of mail fraud and two felony counts of wire fraud, before United States District Judge Rodney Sippel. Sentencings have been set for September 12, 2014.
Each count of mail and wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the Postal Inspection Service, with assistance of the Missouri Secretary of State’s Office. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney's Office.
Supplier of Non-FDA-Approved Chemotherapy and Cosmetic Drugs Sentenced to 15 MonthsRead the Press Release
ALEXANDRIA, Va. – Mirwaiss Aminzada, 44, of Montreal, Quebec, and Dubai, United Arab Emirates (UAE), was sentenced today to 15 months in prison, 1 year of supervised release and restitution of $586,798. On Dec. 19, 2013, Aminzada pleaded guilty to introducing misbranded drugs into the United States.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Antoinette V. Henry, Special Agent in Charge of the Food and Drug Administration’s (FDA) Office of Criminal Investigations; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; Clark Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Washington; Gary Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and M. Douglas Scott, Arlington County Chief of Police, made the announcement after sentencing by U.S. District Judge Claude M. Hilton.
According to court documents, Aminzada, a U.S. citizen, was the owner and operator of several companies based in Canada, the UAE and Afghanistan. Through these companies, Aminzada obtained chemotherapy and cosmetic drugs intended for Middle Eastern markets and sold those drugs to Gallant Pharma, an unlicensed wholesale drug distributor based in Arlington, Virginia, for resale in the United States. Aminzada used an employee in Pakistan to alter the drugs’ packaging and hide evidence of their foreign source. In one e-mail exchange with Aminzada, the employee complained he was unable to keep “cold chain” chemotherapy drugs refrigerated—which is required to protect drug efficacy and patient health and safety—because the electricity in Peshawar, Pakistan kept going out.
Aminzada also was the source of vials of tampered Botox that were missing safety caps, contained an unusual jelly-like substance and bore mismatched lot numbers and expiration dates. The tampered Botox entered the U.S. supply chain through Gallant Pharma, and some was administered to patients in New England.
To date, twelve defendants associated with Gallant Pharma have been convicted. Two additional defendants named in the indictment, Robert Wachna and Munajj Rochelle, remain fugitives and are believed to be in Canada.
This case was investigated by FDA’s Office of Criminal Investigations, DEA’s Group 33 Diversion Task Force, ICE-HSI and the U.S. Postal Inspection Service, with assistance from the Arlington County Police Department and Interpol. Assistant U.S. Attorneys Lindsay Kelly, Maya Song and Jay Prabhu 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 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.Second Marijuana Grow Robber Sentenced to Long Prison TermRead the Press Release
Defendant was Shot and Critically Wounded While Fleeing from Marijuana Distributor in Maple Valley Neighborhood
A second defendant who was shot while fleeing from the robbery of a marijuana distributor was sentenced today in U.S. District court in Seattle to 12 years in prison, announced U.S. Attorney Jenny A. Durkan. FERDINAND CLAY, 32, of Seattle and Melvin Charles Slaughter, 31, tied up and robbed Maple Valley marijuana dealer Jason Loken on August 13, 2013. The two men stole guns, and marijuana from Loken; Loken had been restrained but was able to free himself. He raced out of the house with a gun he had hidden under his mattress, and fired multiple shots at the fleeing robbers. CLAY was shot in the face, neck and hip but recovered from his wounds. U.S. District Judge Robert S. Lasnik also imposed 3 years of supervised release.
“Drug dealing is a volatile business, where guns and violence threaten public safety. All those involved in this crime are paying with their freedom for their criminal conduct,” said U.S. Attorney Jenny A. Durkan. “The two robbers who have extensive criminal history, will serve the longest sentences. But the drug dealer who attracted this violence to his quiet neighborhood will also spend years in prison.”
After shots were fired the robbery team sped away tossing bloodied items from the car, including some of the stolen firearms. They were recovered by police along the highway. The two who were injured went to different hospitals for treatment. Slaughter and the other female member of the robbery crew later turned themselves in to police.
Slaughter was sentenced to 14 years in prison on April 25, 2014. Loken was sentenced to 32 months in prison on May 27, 2014.
The case was investigated by the King County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Drug Enforcement Administration (DEA). The case was prosecuted by Assistant United States Attorney Vince Lombardi.
Savannah Man Sentenced to 25 Years for Transporting A Minor with Intent to Engage in Sexual Conduct and Child Pornography ChargesRead the Press Release
STATESBORO, GA – Steve Lavon Biggins, 33, of Savannah, Georgia, was sentenced Wednesday by United States District Court Senior Judge B. Avant Edenfield to 25 years in prison, followed by supervised release for the remainder of his life, for Transporting a Minor with Intent to Engage in Illicit Sexual Conduct, Production of Child Pornography, and Transportation of Child Pornography. Biggins had been found guilty by a federal jury after a 2-day trial in Statesboro, in December 2013.
United States Attorney Edward Tarver said, “Crimes targeting children is reaching epidemic proportions. The protection of our children is, and should be, a priority to which the Department of Justice takes swift and aggressive enforcement action. This defendant met an underage girl online, lied to her to gain her trust, and engaged in illegal sex acts in violation of numerous federal laws. Lengthy sentences like the one handed down in this case help protect our children from predatory acts, and serve to deter others from engaging in similar conduct.”
Evidence presented during the trial revealed that Biggins, a 33-year-old truck driver posing as a man in his twenties named “Rodney,” engaged in text and telephone communications with a girl under the age of 16 with whom he initiated contact through the mobile application “Tagged.com.” After developing an in-person relationship with the victim, and without the knowledge of the girl’s parents, in July 2013, Biggins took the child on short-haul trips that spanned seven days, and included travel to South Carolina, Tennessee, and North Carolina, before returning to Georgia. While on the trip he engaged in sexual conduct that violated the laws of each state he entered, and photographed the same. Upon his return trip through Millen, Georgia, Biggins was stopped and immediately arrested by law enforcement officers. He has remained in custody since that time.
The arrest in this case was accomplished through the combined efforts of Millen Police Department, Jenkins County Sheriff’s Office, Georgia State Patrol, Georgia Bureau of Investigation, and the Federal Bureau of Investigation. This case was brought as part of Project Safe Childhood, which is a nationwide U. S. Department of Justice initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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.
FBI Special Agent Marcus Kirkland investigated the case. Assistant United States Attorney Nancy Greenwood, Deputy Criminal Chief in the Augusta U. S. Attorney’s Branch Office and Project Safe Childhood Coordinator, prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
San Francisco Man Indicted for FraudRead the Press Release
SAN FRANCISCO – Yesterday a grand jury indicted Luke D. Brugnara on charges of mail fraud, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
According to court documents, Brugnara, 50, of San Francisco, allegedly agreed to purchase several works of art for a combined total of approximately $11,000,000. The art was shipped to Brugnara from New York, however, after he took possession of the art, he refused to pay for it or to return it. Law enforcement authorities obtained a search warrant for Brugnara’s home and seized four of the five crates of art that had been shipped to Brugnara. The fifth crate, which contained a work of art worth at least hundreds of thousands of dollars, remains missing.
According to the Indictment, Brugnara represented he would pay millions of dollars for these works of art, however, the Indictment alleges that Brugnara had almost no income, no assets, no means to pay for the art, and a substantially negative net worth.
After a Criminal Complaint was filed against him, Brugnara was arrested on May 28, 2014, in San Francisco. He made his initial appearance in federal court in San Francisco that morning. Brugnara remains in custody. Brugnara’s next court appearance is scheduled for Monday, June 9, 2014, at 9:30 a.m. before the Honorable Laurel Beeler, United States Magistrate Court Judge.
In 2010, Brugnara was convicted of several other federal crimes, including filing false tax returns, making false statements, and violating the Endangered Species Act. As a result, he was sentenced to 30 months in prison. He was still on supervised release from some of those convictions when he allegedly committed the fraud offense for which he was indicted yesterday.
The maximum statutory penalty for mail fraud, in violation of Title 18, United States Code, Section 1341, is 20 years in prison, a fine of $250,000, forfeiture, and restitution. Any sentence following conviction, however, would be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Doug Sprague is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rawaty Yim. The prosecution is the result of a one-month investigation by the Federal Bureau of Investigation.
Please note that an Indictment contains only allegations against an individual and, as with all defendants, Luke D. Brugnara must be presumed innocent unless and until proven guilty.
(Brugnara indictment )
Salesman and CEO of Former Downstate Telecommunications Business Indicted in Alleged $6 Million Financing Fraud SchemeRead the Press Release
CHICAGO — During three telephone conference calls with an outside auditing firm and his own company’s CEO and CFO in November 2012 and January 2013, a sales representative for a downstate computer and telecommunications business posed as an employee of a global telecommunications company that the downstate firm had partnered with and, with his CEO’s alleged knowledge and participation, lied about the downstate company being owed millions of dollars by its larger international partner, according to a federal fraud indictment.
As a result, DAVID GODWIN, the chief executive officer, president and board chairman of the former ContinuityX Solutions, Inc., of Metamora, Ill., and JOHN COLETTI, a ContinuityX sales representative, allegedly secured $6 million in November 2012 from two victim financing companies for ContinuityX based on the allegedly false assurances that its global marketing partner owed ContinuityX $12 million in receivables.
Godwin, 52, of Germantown Hills, Ill., was charged with six counts of wire fraud, and Coletti, 53, of Canyon Country, Calif., was charged with four counts of wire fraud, in an indictment returned yesterday by a federal grand jury in Chicago. The indictment also seeks forfeiture of approximately $6 million from both defendants. Both defendants will be ordered to appear for arraignment on a date to be determined in U.S. District Court in Chicago.
According to the indictment, an unnamed global telecommunications company entered into a joint marketing agreement with ContinuityX under which ContinuityX billed the larger company for computer and telecommunications services, including networked computer server space, which ContinuityX provided to the international firm’s customers. Godwin and Coletti allegedly falsely represented to the two victim financing companies in Atlanta and Baltimore, an auditing firm, and ContinuityX’s chief financial officer and investors, that ContinuityX was owed $12 million for services it provided to the global firm’s customers. Godwin allegedly caused ContinuityX to create false emails and invoices as part of the fraud scheme and knew that a signature was forged on a purchase order.
Godwin and Coletti together fraudulently arranged the conference calls in which Coletti posed as an employee of the global telecommunications partner to falsely assure auditors, ContinuityX’s CFO, and the two victim financing companies that the accounts receivable were legitimate and that payment was forthcoming, the indictment alleges.
To conceal the false invoices, Godwin allegedly fraudulently caused ContinutyX to file a Form 10-Q with the U.S. Securities and Exchange Commission in November 2012, which Godwin certified as CEO of ContinuityX, purportedly recognizing $4 million in revenue from the global telecommunications company that Godwin knew was false.
Each count of wire fraud carries a maximum penalty of 20 years in prison and a $250,000 million fine, and restitution is mandatory. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Chicago office of the Securities and Exchange Commission cooperated with the investigation.
The government is being represented by Assistant U.S. Attorney Steven Dollear.
The public is reminded that 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.
Indictment
Ringleader of Tax Refund Check Scam Admits $2.6 Million ConspiracyRead the Press Release
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Reputed Aryan Brotherhood of Texas Gang Leader Pleads Guilty to Federal Racketeering ChargesRead the Press Release
An alleged general of the Aryan Brotherhood of Texas gang (ABT) pleaded guilty today to racketeering charges related to his membership in the ABT’s criminal enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Terry Ross Blake, aka “Big Terry,” 56, of Corpus Christi, Texas, pleaded guilty before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.
According to court documents, Blake and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Blake and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
By pleading guilty to racketeering charges, Blake admitted to being a member of the ABT criminal enterprise.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
At sentencing, scheduled for Oct. 8, 2014, Blake faces a maximum penalty of life in prison.
Blake is one of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. To date, 28 defendants have pleaded guilty.
This Organized Crime Drug Enforcement Task Force case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite, Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.
The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Southern District of Texas.Reputed Aryan Brotherhood of Texas Gang Leader Pleads Guilty to Federal Racketeering ChargesRead the Press Release
HOUSTON - An alleged general of the Aryan Brotherhood of Texas gang (ABT) pleaded guilty today to racketeering charges related to his membership in the ABT’s criminal enterprise, announced U.S. Attorney Kenneth Magidson and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
Terry Ross Blake, aka “Big Terry,” 56, of Corpus Christi, pleaded guilty before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.
According to court documents, Blake and other ABT gang members and associates, agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Blake and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
By pleading guilty to racketeering charges, Blake admitted to being a member of the ABT criminal enterprise.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
At sentencing, scheduled for Oct. 8, 2014, Blake faces a maximum penalty of life in prison.
Blake is one of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. To date, 28 defendants have pleaded guilty.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; sheriff’s offices in Harris, Tarrant, Atascosa, Orange and Waller Counties; police departments in Alvin, Carrollton and Mesquite Texas; as well as the Montgomery and Atascosa County District Attorney’s Offices.The case is being prosecuted by the U.S. Attorney’s Office of the Southern District of Texas and the Criminal Division’s Organized Crime and Gang Section.
Poplar Man Gets 20 Years for Rape, Assault and BurglaryRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, Montana, on June 6, 2014, before U.S. District Judge Brian M. Morris, KEVIN J. DEVEREAUX, 50, of Poplar, was sentenced to a term of 20 years imprisonment, five years supervised release, and a special assessment of $300.
Following a three-day trial in Great Falls, a jury convicted Devereaux of raping a woman on the Fort Peck Reservation, burglarizing her home, and severely assaulting her in front of her 7-year-old granddaughter. The rape occurred in 2009, when Devereaux appeared in the victim's house as she was asleep on the sofa with her two grandchildren, ages two and eight months. Devereaux dragged her to the bedroom, where he raped her. He then fled the house. Days after the offense occurred, Devereaux intimidated the victim into recanting her story. In 2013, Devereaux broke into her bedroom where she was sleeping with her seven-year-old granddaughter and beat her in the head multiple times. When the child pleaded with him to stop, Devereaux screamed at her "I'm going to kill your grandma!" The victim was able to escape and call 911. During the investigation of the second offense, the Federal Bureau of Investigation interviewed the victim, at which point she disclosed Devereaux had intimidated her into changing her story regarding the rape. Due to advancements in the law, the United States was still able to prosecute the rape offense years later, when the truth came out about the circumstances surrounding the victim's statements about the rape.
The Court sentenced Devereaux to 20 years of imprisonment, with five years of supervised release to follow. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Devereaux will likely serve all of the time imposed by the court. In the federal system, Devereaux does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
This investigation was conducted by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice.
Polk County Man Sentenced to 7 Years for Tax FraudRead the Press Release
Tampa, Florida – U.S. District Judge Richard A. Lazzara today sentenced Norman V. Charlton (50, Lakeland) to 7 years in federal prison on tax fraud charges. The Court also ordered the forfeiture of $14,952 in U.S. currency that was seized from his residence on March 21, 2012, and entered a forfeiture money judgment in the amount of $325,886, the traceable proceeds of the fraud scheme.
On March 7, 2014, Charlton pleaded guilty to one count of conspiracy to commit wire fraud and one count of aggravated identity theft in connection with using stolen names and social security numbers to electronically file fraudulent tax returns.
According to court documents, from August 2011 through June 4, 2012, Charlton and co-conspirators used stolen identities, including names, dates of birth, and social security numbers, to electronically file fraudulent tax returns and obtain tax refunds to which they were not entitled. A record of those filings was kept by Charlton in a detailed ledger, complete with names, email addresses, passwords, filing dates, times, and amounts. The fraudulent refunds were deposited onto reloadable debit cards in the names of others, and/or were disbursed in the form of U.S. Treasury checks and mailed to addresses controlled or directed by Charlton and others. Charlton and his co-conspirators used and directed the fraudulent tax refunds to obtain cash and goods for their own benefit and the benefit of others.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Polk County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Overton Cattle Feeding Operation Sentenced for Clean Water Act ViolationsRead the Press Release
United States Attorney Deborah R. Gilg announced that Central Feeders, Inc. a Concentrated Animal Feeding Operation (CAFO) located near Overton in Dawson County, Nebraska, has entered a plea of guilty and has been sentenced for a misdemeanor violation of the Clean Water Act. The plea and sentencing occurred in the United States District Court in Lincoln, Nebraska. The Honorable Richard G. Kopf, Senior Judge, accepted the plea and sentenced Central Feeders, Inc. to a 3 year term of probation and imposed a fine of $20,000. During probation Central Feeders, Inc. will be required to abide by a compliance plan to be monitored by the United States Probation Office and the Environmental Protection Agency to eliminate violations of the Clean Water Act.
Central Feeders, Inc. is a cattle feeding operation. On at least four separate occasions between April of 2011 and April of 2012 livestock waste was negligently discharged from the feedlot into Mud Creek. Mud Creek is a tributary of the Platte River, a waterway of the United States. The discharges did not result in any fish kills and no environmental clean-up costs were noted.
In addition to the criminal penalty Central Feeders, Inc. has negotiated a civil penalty with the Environmental Protection Agency. That penalty is subject to publication and final approval. It is anticipated that the civil penalty will be $38,911.
Omaha Man Sentenced for Social Security FraudRead the Press Release
United States Attorney Deborah R. Gilg announced that Kingsley Onumbu, age 53 of Omaha, Nebraska, was sentenced after pleading guilty to Social Security fraud. The Honorable Joseph F. Bataillon sentenced Onumbu to time served and a 1 year term of supervised release.
The Social Security Administration Office of Inspector General investigated this case after it was learned that Onumbu provided two different Social Security Numbers and name variations in applications to be a licensed car salesman. He used a number that was legitimately assigned to him and also used his son’s number. No monetary loss occurred as a result of Onumbu’s actions as the Nebraska Motor Vehicle Licensing Board reported the problem immediately upon discovery.
North Texas Men, Who Owned Hyperbaric Oxygen Therapy Companies, Are Sentenced for Roles in Conspiracy to Commit Health Care FraudRead the Press Release
DALLAS — Yesterday afternoon, two businessmen, Stanley Thaw, 72, of Frisco, Texas, and Michael Kincaid, 57, of Plano, Texas, who owned and operated hyperbaric oxygen therapy (HBOT) companies located in Plano, Denton, Hurst, Houston, and San Antonio, Texas, were each sentenced to five years in federal prison by U.S. District Judge Jorge A. Solis for conspiring to commit health care fraud. In addition, Judge Solis ordered them to pay approximately $1.5 million in restitution, jointly and severally. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
Each defendant pleaded guilty in July 2013 to one count of conspiracy to commit health care fraud, admitting they conspired together, and with others, to defraud Medicare by making false and fraudulent representations and promises in connection with payments of HBOT services and items. HBOT is a therapy used to assist in healing diabetic sores or amputations in an outpatient setting. HBOT is administered by placing the patient in a hyperbaric oxygen chamber to receive increased levels of oxygen; each session of HBOT is commonly referred to as a “dive,” and generally lasted between ninety minutes and two hours.
The HBOT companies employed physicians to attend and supervise HBOT sessions to ensure that a patient was medically appropriate for the HBOT on that particular day and also to treat any medical emergency that may occur. Stanley Thaw and Kincaid admitted that they defrauded Medicare by billing multiple times for the physician supervision and attendance of HBOT-related services, when, in fact, the physician only supervised and attended one session/dive that day.
Stanley Thaw and his co-conspirators were advised on multiple occasions that billing for multiple dive sessions was improper and that they had overbilled Medicare. They continued to direct fraudulent claims to Medicare and other health care programs through at least June 2011.
The case was investigated by the FBI, the U.S. Department of Health and Human Services - Office of Inspector General, the Office of Personnel Management - Office of Inspector General and the Texas Department of Public Safety. To learn more health care fraud, please visit: http://www.stopmedicarefraud.gov/.
Assistant U.S. Attorney P.J. Meitl prosecuted.
New York Marine Life Dealer Convicted and Sentenced for Illegal Wildlife TraffickingRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Edward Grace, Deputy Assistant Director, U.S. Fish & Wildlife Service, Office of Law Enforcement, and Tracy A. Dunn, Special Agent in Charge, SAC Southeast Regional Office, NOAA, announce that Jonathan M. Hale, 30, of Patchogue, New York, pled guilty and was sentenced for transporting, possessing, and selling live rock bearing specimens of Ricordea florida in interstate commerce, with a fair market value in excess of $350.00, knowing the marine life was taken, possessed, transported, sold, and intended to be sold in violation of the laws and regulations of the State of Florida, contrary to the federal Lacey Act, Title 16, United States Code, Sections 3372(a)(2)(A), (a)(4), 3373(d)(1)(B), and Title 18, United States Code, Section 2.
The defendant entered his guilty plea to the single charge before U.S. District Judge James Lawrence King, who after accepting the guilty plea imposed sentence on the defendant. Hale was sentenced to a term of probation of two years and a criminal fine of $10,000.
According to the indictment, joint factual statements submitted to the Court, and statements in court, at the relevant times, Hale was Chairman/Chief Executive Officer of Country Critters of Long Island, Inc., located in Patchogue, New York. Country Critters of Long Island, Inc. was a retail business engaged in the sale of various species of wildlife, including mammals, reptiles, and fish.
In September 2012, at Marathon Shores, Florida, the defendant met with a marine life supplier and discussed pricing of various marine life species, including Ricordea florida, tarpon, and sharks. The defendant then placed an order for 100 ricordea, on rock.
In early October 2012, in a telephone conversation from Marathon Shores to the defendant in Patchogue, New York, the supplier advised he had acquired the requested marine life near Key West, and secured defendant’s promise to keep the source of the ricordea secret because it was illegal to harvest them in that area.
Thereafter, a shipment including six live rocks (Scleractinia) bearing approximately 111 specimens of Ricordea florida was shipped in interstate commerce from Fort Lauderdale-Hollywood International Airport to New York, consigned to “Country Critters-Jonathan Hale” and invoiced for wholesale in the amount of $444.00. Payment for the shipment was made by Jonathon Hale by credit card, to the marine life supplier. The retail fair market value of the ricordea exceeded $2,200.
Mr. Ferrer commended the investigative efforts the U.S. Fish & Wildlife Service, Office of Law Enforcement, and NOAA Fisheries Office of Law Enforcement who participated in the long-term investigation into the illegal harvesting and sale of marine life resources from the Florida Keys known as Operation Rock Bottom. This case was prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
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.
Moldovan national pleads guilty to wire fraudRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Iurie Stratenco, 28, of Moldova, pleaded guilty to wire fraud before U.S. District Court Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years In prison, a fine of $250,000, or both.
Assistant U.S. Attorney Trini E. Ross, who is handling the case, stated that the defendant used a fraudulent passport from Denmark in the name of Christian Bendtner, to open up several bank accounts in the Buffalo area. Stratenco then placed false advertisements on eBay for “Can-Am Spyder” and “Honda Goldwing” motorcycles. The defendant directed interested buyers to wire money into one of the bank accounts opened under the name Christian Bendtner. Stratenco told victims the money would go into an eBay holding account until the merchandize was shipped. Instead, the money went directly into one of the fraudulent accounts. During the course of the scheme, the defendant transferred $17,500 of the money wired into the fraudulent accounts to an individual located in the Ukraine. As a result of Stratenco’s actions, individuals wired $49,300 to the fraudulent bank accounts.
The plea is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero.
Sentencing is scheduled for September 10, 2014, at 1:00 p.m. before Judge Arcara.Man Sentenced for Identity TheftRead the Press Release
GREENSBORO, N.C. – A Myrtle Beach, South Carolina, man was sentenced to 23 months of imprisonment for fraudulently obtaining Treasury checks and aggravated identity theft, announced United States Attorney Ripley Rand.
Senior United States District Judge N. Carlton Tilley, Jr., sentenced Herber Alexsander Gonzales-Escobar, 24, to 23 months in prison. Gonzales-Escobar was also ordered to pay a $200.00 special assessment, and will be deported back to Honduras. Gonzales-Escobar had pleaded guilty to fraudulently obtaining Treasury checks and aggravated identity theft on November 7, 2013.
On July 29, 2013, Gonzales-Escobar was operating a motor vehicle near Pinnacle, North Carolina, when he was stopped by a North Carolina Highway Patrol trooper. During the stop, the trooper discovered four United States Treasury checks made out to four different individuals. Along with the checks were identifying documents specific to each individual’s name as listed on the Treasury checks.
The case was investigated by the North Carolina Highway Patrol, Internal Revenue Service - Criminal Investigation Division, and the United States Secret Service, and prosecuted by Assistant United States Attorney Frank Chut.
Local Woman Admits Stealing $78K in Social Security Income BenefitsRead the Press Release
PITTSBURGH - A Pittsburgh resident pleaded guilty in federal court to a charge of theft of government property, United States Attorney David J. Hickton announced today.
Laverne Russell, 73, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that Russell converted to her own use over $78,000 in Social Security Income Benefits from the Social Security Administration.
Judge Fischer scheduled sentencing for Oct. 15, 2014 at 9 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued bond pending sentencing.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Social Security Administration, Office of Inspector General conducted the investigation that led to the prosecution of Laverne Russell.
Local Man Sentenced for Possessing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Christopher Lee, 41, of Corpus Christi, has been ordered to federal prison for possession of child pornography, announced United States Attorney Kenneth Magidson. Lee pleaded guilty March 3, 2014.
U.S. District Judge Nelva Gonzalez Ramos considered the need to protect the public and deter future criminal conduct and ordered Lee serve a total sentence of 70 months in prison. He will also serve 10 years of supervised release 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.
On March July 28, 2013, the Corpus Christi Police Department (CCPD) responded to a domestic disturbance call at a motel in Corpus Christi. The victim claimed her boyfriend, Lee, had assaulted her. She further alleged Lee had been viewing child pornography on his cell phone earlier that day. She described images of nude girls between the ages of seven and nine as well as a video of an adult male sexually assaulting a six-month old female infant.
Lee later contacted the police in an effort to obtain reports related to the assault and on Aug. 7, 2013, he came to the police station to pick up the assault reports. At that time, he provided consent for officers to search his cell phone, which resulted in the discovery of child pornography. A forensic examination identified numerous child pornography and child erotica images.
Lee later admitted to downloading, viewing and saving the child pornography on his phone.
Lee will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI and CCPD – Internet Crimes Against Children task force investigated.
This case, prosecuted by Assistant U.S. Attorney Lance Duke, 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."
Leader and Others Ordered to Federal Prison in Alien Smuggling ConspiracyRead the Press Release
HOUSTON – Lenyn Acosta, 33, and three others have been ordered to prison for their roles in a conspiracy to transport or harbor aliens illegally present in the country, announced U.S. Attorney Kenneth Magidson. Mexican National Acosta pleaded guilty to conspiracy to transport aliens as did Debora Baldizon, 37, of Nicaragua, and Maurisio Hernandez-Chinchilla, 32, and Franklin Gutieres, 33, both of Honduras.
Today, U.S. District Judge Melinda Harmon, who accepted all the guilty pleas, handed Acosta a total sentence of 97 months in federal prison. In handing down the sentence, Judge Harmon found Acosta was the organizer and leader of an ongoing and extensive conspiracy involving hundreds of undocumented aliens, to include juveniles. Judge Harmon also found Acosta caused serious bodily injury to a female alien he harbored by sexually assaulting her during the course of the conspiracy. At the hearing today, that victim testified about the impact the crime has had on her life.
Baldizon and Hernanez-Chinchilla were also sentenced today to a respective terms of 30 and 12 months in prison. Gutieres was sentenced on May 23, 2014, to a 12-month term of imprisonment.
As illegal aliens, all are expected to face deportation proceedings following release from prison.
Charges in the case stem from an investigation that began in July 2012 after federal agents received information that Acosta was involved in organizing temporary housing for aliens smuggled to Houston. He then coordinated their transportation by means of motor vehicle to different locations throughout the United States.
In May 2014, Hernandez-Chinchilla and Gutieres were arrested in connection with arranging the transportation of eight aliens illegally present in the U.S. Later, agents executed a search warrant at a residence in Houston which was being used by Acosta and his conspirators to stash aliens awaiting transportation. Agents encountered 13 additional aliens illegally present in the country.
All will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges in this case was conducted by Homeland Security Investigations. Assistant United States Attorney Casey N. MacDonald is prosecuting the case.
Law Enforcement Arrests Members of the Violent “Goon Squad” and Others on Drug Trafficking and Robbery Conspiracy ChargesRead the Press Release
Led by Two Brothers and Their Sister; Other Family Members Also Involved
DALLAS — Following a law enforcement operation yesterday by special agents with the FBI and officers with the Dallas Police Department, 10 defendants who are charged in a drug distribution and robbery conspiracy are in custody. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas, Special Agent in Charge Diego Rodriguez of Dallas FBI and Chief David O. Brown of the Dallas Police Department.
Defendants indicted and in custody are:
- Cesar Ibarra, aka “Bling,” 39, of Mansfield, Texas
- Hilberto Ibarra, aka “Gilberto,” 29, of Mansfield, Texas
- Cesar Ibarra, Jr., aka “Chicho,” 21, of Dallas, Texas
- Lauro Reyes-Serrano, aka “Wicho” and “Gordo,” 29, of Dallas
- Nicholas Manriquez, 28, of Dallas, Texas
- Andres Garcia, aka “Mentiras,” 30, of Dallas, Texas
- Victor Anderson, aka “Old School,” 51, of Dallas, Texas
- Quinton Walker, 30, of Dallas, Texas
- Mark Anthony Nolasco, 22 of Dallas, Texas and Mansfield, Texas
One defendant named in the indictment, Elva Sofia Ibarra, 36, also of Dallas, has not been arrested. Another defendant, Felipe Gonzalez, 27, was arrested today on a related federal criminal complaint. The 10 arrested defendants made their initial appearances in federal court this afternoon and will remain in custody pending detention hearings scheduled for next week.
“This indictment and the arrests of these defendants represent the culmination of many months of diligent work by the FBI and the Dallas Police Department, and serves as an excellent example of the collaborative efforts of the federal government and local law enforcement to apprehend those individuals who are the most dangerous in our communities,” said U.S. Attorney Saldaña. “We believe this case will have a significant impact on the communities in which these criminals operated.”
“These arrests have resulted in a significant disruption of a criminal enterprise in the Dallas Division,” said Special Agent in Charge Rodriguez. “This joint investigation is a clear example of law enforcement’s commitment to remove the elements that pose significant social and criminal threats to our communities.”
“The Dallas Police Department was pleased to be involved in the investigation which led to the successful indictment and arrest of several members of the Goon Squad street gang,” said Chief Brown. “The arrests of these individuals is the culmination of a successful collaboration between the FBI, the US Attorney’s Office and our Department, as well as other members of the law enforcement community.”
The indictment alleges that Cesar Ibarra and his brother, Hilberto Ibarra, and their sister, Elva Sofia Ibarra (the Ibarra siblings) conspired with each other and others to commit illegal narcotics-trafficking offenses and criminal offenses in furtherance of their drug-trafficking activities, including the commission or planned commission of burglaries, robberies and other acts of violence. The Ibarra siblings and certain other co-conspirators called themselves the “Goon Squad,” and while Cesar and Hilberto Ibarra led the Goon Squad, the Ibarra siblings involved other family members, including Cesar Ibarra, Jr., in their cocaine, methamphetamine and marijuana trafficking activities.
According to the indictment, the Goon Squad targeted individuals known, or believed, to be drug dealers for burglary, robbery or other acts of violence, because those individuals were likely to possess large quantities of illegal narcotics, U.S. currency or firearms, and would not be likely to report any offenses by the Goon Squad.
The Goon Squad performed surveillance and reconnaissance on their potential victims. They also attempted to perform similar surveillance on members of law enforcement they believed were investigating their illicit activities by taking photographs and recording vehicle-specific information.
Count One of the indictment alleges that between November 2011 and June 3, 2014, these 10 defendants conspired to possess with intent to distribute 500 grams or more of methamphetamine, five kilograms or more of cocaine and marijuana.
Count Two of the indictment alleges that during the same time frame, defendants Cesar Ibarra, Hilberto Ibarra, Elva Sofia Ibarra, Lauro Reyes-Serrano and Victor Anderson conspired with each other and others to obstruct, delay and affect interstate commerce by robbery, in that the defendants and their co-conspirators conspired to unlawfully take and obtain controlled substances, firearms and cash from others, by actual or threatened force and violence. Cesar and Hilberto were the leaders and organizers of the robberies, or other acts of violence, and personally participated in such illegal activities.
A federal indictment is an accusation by a grand jury. A complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. The government has 30 days to present the matter to a grand jury for indictment. A defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the statutory maximum penalty for each count of the drug trafficking conspiracy is life in federal prison and millions of dollars in fines. The statutory maximum penalty for each count of conspiracy to commit robbery affecting interstate and foreign commerce is 20 years in federal prison and a $250,000 fine.
Assistant U.S. Attorneys P. J. Meitl and Jason Schall are prosecuting.
(Download Factual Basis)
Lame Deer Man Sentenced to Twelve Years in Triple StabbingRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, Montana, on June 6, 2014, before U.S. District Judge Brian M. Morris, ROBET LEWIS BURSHIA, of Lame Deer, was sentenced to a term of 12 years imprisonment, three years supervised release, and a special assessment of $400.
Following trial in Great Falls, a jury convicted BURHSIA on all three counts charged in the indictment: three counts assault with a dangerous weapon and one count assault resulting in serious bodily injury. BURSHIA was charged after stabbing three women at a Fort Peck residence. The group was eating dinner out in the kitchen area, when BURSHIA suddenly pulled a knife out of his hoodie pocket and stabbed one of the women in the abdomen, claiming the group had taken his "jug" and methamphetamine. When the woman ran away, Burshia chased her. Another woman threw herself in front of the first victim and was stabbed by Burshia in the arm. When the two women ran to hide in the garage, BURSHIA went to another room where he stabbed a third woman, who was sleeping with her young children. Burshia then fled the residence, screaming that he should have killed them.
The Court sentenced Devereaux to 12 years of imprisonment, with three years of supervised release to follow. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Burshia will likely serve all of the time imposed by the court. In the federal system, Burshia does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
This investigation was conducted by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice.
Justice Department and CNCS Announce New Partnership to Enhance Immigration Courts and Provide Critical Legal Assistance to Unaccompanied MinorsRead the Press Release
The Corporation for National and Community Service (CNCS), which administers AmeriCorps, and the Department of Justice today announced “justice AmeriCorps,” a strategic partnership to increase national service opportunities while enhancing the effective and efficient adjudication of immigration proceedings involving certain children who have crossed the U.S. border without a parent or legal guardian.
The interagency agreement reflects the spirit of a presidential memorandum issued on July 15, 2013, that established the Task Force on Expanding National Service. The task force calls on federal agency leaders to identify ways to address some of the nation's most pressing challenges by expanding national service.
“With the launch of justice AmeriCorps, we're taking a historic step to strengthen our justice system and protect the rights of the most vulnerable members of society,” said Attorney General Eric Holder. “How we treat those in need, particularly young people who must appear in immigration proceedings - many of whom are fleeing violence, persecution, abuse or trafficking - goes to the core of who we are as a nation. Through this program, we reaffirm our allegiance to the values that have always shaped our pursuit of justice. We empower new generations of aspiring attorneys and paralegals to serve their country and stand on the front lines of this fight. And we bolster both the efficacy and the efficiency of our immigration courts.”
“Young immigrant children entering the U.S., often under dangerous circumstances, represent some of the most vulnerable individuals who interact with our immigration system,” said Wendy Spencer, Chief Executive Officer of CNCS. “AmeriCorps members will provide critical support for these children, many of whom are escaping abuse, persecution or violence. The justice AmeriCorps partnership responds to a direct call from Congress, and reflects how national service can be a part of the solution to some of the most challenging issues facing our country today.”
The partnership, known as justice AmeriCorps, is a grant program that will enroll approximately 100 lawyers and paralegals as AmeriCorps members to provide legal services to the most vulnerable of these children, responding to Congress' direction to the department’s Executive Office for Immigration Review (EOIR) “to better serve vulnerable populations such as children and improve court efficiency through pilot efforts aimed at improving legal representation.” In addition, department officials believe the AmeriCorps members will help identify unaccompanied immigrant children who have been victims of human trafficking or abuse to assist in the investigation and prosecution of those who perpetrate such crimes on those children.
CNCS is a federal agency that engages more than five million Americans in service through its AmeriCorps, Senior Corps, Social Innovation Fund and other programs, and leads the President’s national call to service initiative, United We Serve. For more information, visit CNCS' website.
EOIR is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to the United States’ immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Justice Department Concludes That Los Angeles County Jails System Has Made Progress, but Serious Deficiencies ContinueRead the Press Release
The Justice Department today released its latest compliance assessment of mental health services at the Los Angeles County Jails based on a memorandum of agreement (MOA) designed to protect the constitutional rights of prisoners with serious mental illness at the jails. The department concluded that, despite progress in some areas of the MOA, the county of Los Angeles fails to provide sufficient suicide prevention practices to protect prisoners from self-harm. The department also found that other serious deficiencies in the mental health care delivery system remain and combine with inadequate supervision and deplorable environmental conditions to deprive prisoners of constitutionally-required mental health care.
The Los Angeles County Jails system is the largest jail system in the country, housing approximately 19,000 pre-sentenced and sentenced prisoners in seven facilities throughout the county. The Los Angeles Sheriff’s Department operates the jails system and supports the delivery of mental health services within the jails by the county’s Department of Mental Health. In 2002, the department entered into the MOA with the county to resolve a long-standing civil investigation into conditions of confinement at the jails under the Civil Rights of Institutionalized Persons Act (CRIPA). The MOA gives the department access to personnel, documents and prisoners to evaluate the county’s compliance with the MOA. The department is assisted by expert consultants in correctional mental health care and suicide prevention, and provides ongoing technical assistance as part of its monitoring activities. The county has cooperated fully and openly with the department.
The comprehensive assessment released today confirms that certain conditions and practices have not been remedied under the MOA and continue to violate the constitutional rights of prisoners with mental illness. There have been 15 completed suicides at the jails in less than 30 months and the department concluded that some of the deaths may have been preventable with proper suicide prevention practices. The department’s assessment also reveals widespread lapses with regard to basic supervision of prisoners at risk; deficient mental health care for prisoners with clearly demonstrated needs; deplorable environmental conditions, most acutely at Men’s Central Jail; and a suicide review process that often includes inaccurate information and fails to remedy evident and repeated problems in order to prevent similar incidents in the future.
At the same time, the department’s assessment reveals that the county has achieved substantial compliance with certain aspects of the MOA. For example, the county has implemented nearly all provisions related to mental health screening at intake, developed a robust electronic medical records system, increased the number of clinical and support staff and ensured that custodial staff receive initial and ongoing training in the identification and custodial care of prisoners with mental illness. The county has demonstrated a sustained level of acceptable performance and improvement in these areas, which will no longer be subject to evaluation under the MOA.
“The Los Angeles County Jails have an obligation to provide conditions of confinement that do not offend the Constitution and to take reasonable measures to protect inmates from harm,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “Although the county has consulted with the Justice Department for years, our latest assessment reveals serious deficiencies that require further corrective action. We are hopeful that county officials will continue their long-standing cooperation to ensure that sustainable reforms are implemented fully.”
The department intends to enter into discussions with county officials from the Los Angeles County Sheriff’s Department and the county’s Department of Mental Health to address the results of the evaluation. The department expects that those MOA requirements that are in substantial compliance will terminate and no longer be subject to monitoring. The department will propose additional corrective action in the form of a court-enforceable agreement to address the remaining areas with serious deficiencies that violate prisoners’ constitutional rights. The department’s compliance letter includes a comprehensive list of recommended remedial measures that are designed to ensure adequate mental health treatment, supervision, suicide prevention and conditions of confinement for prisoners throughout the jails.
The challenges that the county faces in providing constitutionally adequate mental health services at the jail are driven in part by a rapid increase in the number of prisoners who are seriously mentally ill. The county has begun to take steps to expand diversion programs that will provide community supervision and treatment in a manner consistent with public safety. The department applauds these efforts.
CRIPA was enacted in 1980 to eradicate egregious and harmful conditions that result in a pattern or practice of civil rights violations in jails, prisons, juvenile justice facilities and other public institutions. CRIPA authorizes the department to investigate and, if necessary, initiate a civil action to guarantee the federal and constitutional rights of institutionalized persons.
The MOA is enforced by the Special Litigation Section of the Civil Rights Division and the U.S. Attorney’s Office for the Central District of California, Civil Division. A copy of the MOA can be obtained on the department's website and additional information about the Civil Rights Division’s enforcement activities under CRIPA can be found at the division website .
Justice Department Concludes That Los Angeles County Jail System Continues to Violate Constitutional Rights of Prisoners with Mental Illness and Fails to Provide Adequate Suicide PreventionRead the Press Release
LOS ANGELES – The Justice Department today released its latest assessment of mental health services at the Los Angeles County jails, which concludes that, despite progress in some areas, the County of Los Angeles fails to provide sufficient suicide-prevention practices to protect prisoners from self-harm. The department also found that other serious deficiencies in the mental health care delivery system remain and combine with inadequate supervision and deplorable environmental conditions to deprive prisoners of constitutionally-required mental health care.
The comprehensive assessment sent to the county on Wednesday and released today confirms that certain conditions and practices continue to violate the constitutional rights of prisoners with mental illness. There have been 15 suicides at the jails in less than 30 months, and the Justice Department concluded that some of the deaths may have been preventable with proper suicide prevention practices.
The Justice Department’s assessment also reveals widespread lapses with regard to basic supervision of prisoners at risk; deficient mental health care for prisoners with clearly demonstrated needs; deplorable environmental conditions, most acutely at Men’s Central Jail; and a suicide review process that often includes inaccurate information and fails to remedy evident and repeated problems in order to prevent similar incidents in the future.
The Los Angeles County jail system is the largest in the country, housing approximately 19,000 pre-sentenced and sentenced prisoners in seven facilities throughout the county. The Los Angeles Sheriff’s Department operates the jails system and supports the delivery of mental health services within the jails by the county’s Department of Mental Health.
In 2002, the Justice Department entered into a Memorandum of Agreement with the county to resolve a long-standing civil investigation into conditions of confinement at the jails under the Civil Rights of Institutionalized Persons Act (CRIPA). The MOA gives the Justice Department access to personnel, documents and prisoners to evaluate the county’s compliance with the MOA. The Justice Department is assisted by expert consultants in correctional mental health care and suicide prevention, and provides ongoing technical assistance as part of its monitoring activities. The county has cooperated fully and openly with the Justice Department.
While significant lapses were found, the Justice Department’s assessment reveals that the county has achieved substantial compliance with certain aspects of the MOA. For example, the county has implemented nearly all provisions related to mental health screening at intake, developed a robust electronic medical records system, increased the number of clinical and support staff, and ensured that custodial staff receive initial and ongoing training in the identification and custodial care of prisoners with mental illness. The county has demonstrated a sustained level of acceptable performance and improvement in these areas, which will no longer be subject to evaluation under the MOA.
The Justice Department intends to enter into discussions with officials from the Los Angeles County Sheriff’s Department and the county’s Department of Mental Health to address the results of the evaluation. The Justice Department expects that those MOA requirements that are in substantial compliance will terminate and no longer be subject to monitoring. The Justice Department will propose additional corrective action in the form of a court-enforceable agreement to address the remaining areas with serious deficiencies that violate prisoners’ constitutional rights. This week’s compliance letter includes a comprehensive list of recommended remedial measures that are designed to ensure adequate mental health treatment, supervision, suicide prevention and conditions of confinement for prisoners throughout the jails.
The challenges that the county faces in providing constitutionally adequate mental health services at the jail are driven in part by a rapid increase in the number of prisoners who are seriously mentally ill. The county has begun to take steps to expand diversion programs that will provide community supervision and treatment in a manner consistent with public safety. The department applauds these efforts.
CRIPA was enacted in 1980 to eradicate egregious and harmful conditions that result in a pattern or practice of civil rights violations in jails, prisons, juvenile justice facilities and other public institutions. CRIPA authorizes the Justice Department to investigate and, if necessary, initiate a civil action to guarantee the federal and constitutional rights of institutionalized persons.
The MOA is enforced by the Special Litigation Section of the Civil Rights Division and the United States Attorney’s Office in Los Angeles.
Release No. 14-072
Justice Department and CNCS Announce New Partnership to Enhance Immigration Courts and Provide Critical Legal Assistance to Unaccompanied MinorsRead the Press Release
WASHINGTON - The Corporation for National and Community Service (CNCS), which administers AmeriCorps, and the Department of Justice today announced "justice AmeriCorps," a strategic partnership to increase national service opportunities while enhancing the effective and efficient adjudication of immigration proceedings involving certain children who have crossed the U.S. Border without a parent or legal guardian.
The interagency agreement reflects the spirit of a Presidential Memorandum issued on July 15, 2013 that established the Task Force on Expanding National Service. The Task Force calls on federal agency leaders to identify ways to address some of the nation's most pressing challenges by expanding national service.
"With the launch of justice AmeriCorps, we're taking a historic step to strengthen our justice system and protect the rights of the most vulnerable members of society," said Attorney General Eric Holder. "How we treat those in need, particularly young people who must appear in immigration proceedings - many of whom are fleeing violence, persecution, abuse, or trafficking - goes to the core of who we are as a nation. Through this program, we reaffirm our allegiance to the values that have always shaped our pursuit of justice. We empower new generations of aspiring attorneys and paralegals to serve their country and stand on the front lines of this fight. And we bolster both the efficacy and the efficiency of our immigration courts."
"Young immigrant children entering the U.S., often under dangerous circumstances, represent some of the most vulnerable individuals who interact with our immigration system," said Wendy Spencer, CEO of the Corporation for National and Community Service. "AmeriCorps members will provide critical support for these children, many of whom are escaping abuse, persecution, or violence. The justice AmeriCorps partnership responds to a direct call from Congress, and reflects how national service can be a part of the solution to some of the most challenging issues facing our country today."
The partnership, known as "justice AmeriCorps," is a grant program that will enroll approximately 100 lawyers and paralegals as AmeriCorps members to provide legal services to the most vulnerable of these children, responding to Congress' direction to DOJ's Executive Office for Immigration Review "to better serve vulnerable populations such as children and improve court efficiency through pilot efforts aimed at improving legal representation." In addition, DOJ officials believe the AmeriCorps members will help identify unaccompanied immigrant children who have been victims of human trafficking or abuse to assist in the investigation and prosecution of those who perpetrate such crimes on those children.
- EOIR -
The Corporation for National and Community Service is a federal agency that engages more than five million Americans in service through its AmeriCorps, Senior Corps, Social Innovation Fund, and other programs, and leads President's national call to service initiative, United We Serve. For more information, visit nationalservice.gov.
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Jacksonville Man Indicted on Federal Charges of Failure to Register as A Sex Offender and Possession of Firearms by A Convicted FelonRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced yesterday that Daniel Todd Manning (42, Jacksonville) has been indicted by a federal grand jury and charged with failing to register as sex offender, after traveling from the state of Missouri. He is also charged with the possession of firearms by a convicted felon. If convicted, Manning faces up to 10 years in federal prison for each offense. Manning has been in custody on related state charges since his arrest on April 30, 2014, in Jacksonville.
According to the indictment, on July 26, 2013, Manning was found guilty on two counts of aggravated indecent acts and one count of indecent acts with a child, in the state of Kansas. Subsequent to this adjudication in Kansas, and between July 30, 2013 and April 30, 2014, Manning traveled to the state of Missouri, where he registered as a sex offender. Thereafter, he moved to Florida, where he has since resided. Manning allegedly failed to register as a sex offender in Florida, as required by the Sex Offender Registration and Notification Act.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders.
The indictment also alleges that, on April 30, 2014, Manning knowingly possessed eight different firearms in Jacksonville. At the time of the possession, Manning was a convicted felon and prohibited from possessing firearms or ammunition under federal law.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the United States Marshals Service, the Jacksonville Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case 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.
It is also a case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. This is another example of ATF’s Frontline Strategy to impact violent crime in our communities.
Jackson Man Sentenced to Prison for Drug TraffickingRead the Press Release
Jackson, Miss – Curtis Anthony Shell, 38, of Jackson, was sentenced on June 4, 2014, to 262 months in federal prison for conspiracy to distribute up to 8.4 kilograms of crack cocaine, U.S. Attorney Gregory K. Davis announced today.
Shell orchestrated the distribution of crack cocaine and powder cocaine within Central Mississippi from Holmes County to Simpson County. At times, his network stretched as far as Milwaukee, Wisconsin. Twelve co-conspirators were also convicted in this case with sentences ranging from 36 months to the high of 262 months received by Shell. Large amounts of cash and several vehicles were seized as a result of this investigation.
U.S. Attorney Gregory Davis praised the cooperation exemplified by the Drug Enforcement Administration and the Mississippi Bureau of Narcotics in bringing this organization to its end.
“Thanks to the dedication and hard work of state, local, and federal law enforcement agencies, another illegal drug trafficker has been brought to justice,” said U.S. Attorney Davis. “We will continue to seek out and prosecute those who bring drugs into our Mississippi communities.”
“This case highlights the impact multiple agencies can have when they join forces. We will continue to work together and pursue those who threaten our communities through the distribution of illegal and dangerous drugs,” stated DEA Assistant Special Agent in Charge Floyd Baker.
The case was investigated through the Organized Crime and Drug Enforcement Task Force with substantial involvement by the Drug Enforcement Administration, Mississippi Bureau of Narcotics, Hinds County Sheriff’s Office, Rankin County Sheriff’s Office, Leake County Sheriff’s Office and Pearl Police Department..If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
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(225) 334-4707
or e-mail it to:
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Investment Adviser Charged with Stealing Client FundsRead the Press Release
BOSTON - A Pennsylvania woman affiliated with a Massachusetts-based broker dealer was arrested today on charges that she orchestrated a massive Ponzi scheme.
Patricia S. Miller, 67, was charged in a complaint with wire fraud and arrested in Pennsylvania today.
The complaint alleges that Miller used her position as a trusted financial adviser, as well as her association with a Massachusetts-based broker dealer, to obtain money from clients for purported investments that Miller never made on their behalf. Specifically, Miller promised high returns if clients put their money into “investment clubs” called, among other things, “KS Investments” and “Buckharbor.” Miller represented, among other things, that funds put into her “investment clubs” would be placed in fixed-income notes and other investments. Instead of investing money as promised, Miller misappropriated client funds for her own personal use.
If convicted, Miller faces a maximum sentence under the statute of 20 years in prison, three years of supervised release and a $250,000 fine.
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 is being prosecuted by Ryan M. DiSantis of Ortiz’s Economic Crimes Unit.
Today’s announcement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s Securities and Commodities Fraud Working Group. The interagency FFETF was created to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force, chaired by Attorney General Eric Holder, includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Husband and Wife Plead Guilty to Charges Relating to A $3.7 Million Advance Fee Scheme and Tax EvasionRead the Press Release
Developed Relationships with Religious Groups as Part of the Scam
Greenbelt, Maryland - Husband and wife Shannon and Yvette Johnson, ages 50 and 52, respectively, of Laytonsville, Maryland, and Corona, California, pleaded guilty to charges in connection with a fraudulent advance fee scheme and tax evasion. Yvette’s guilty plea was today and Shannon pleaded guilty on June 2, 2014.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General Tamara W. Ashford of the U.S. Department of Justice Tax Division; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
“Fraud schemes cause tremendous financial damage to everyone, especially members of our community. Engaging in an advance fee scheme and under reporting taxable income is unlawful and honest law abiding citizens are fed up with the likes of those motivated merely by greed,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “IRS Criminal Investigation welcomes opportunities to assist the Department of Justice and their law enforcement partners with dismantling fraud schemes such as this and enforcing the nation’s tax laws.”
Shannon Johnson admitted that he ran a fraudulent advance fee scheme from 2006 to 2009. Shannon Johnson held himself out as a wealthy international investment banker who could provide millions of dollars and euros in financing to businesses and individuals. In return for substantial advance banking fees, the Johnsons promised to provide investors with money which they claimed they held in an overseas bank account. Shannon Johnson provided these businesses and investors with false documents purporting to be from the overseas bank to authenticate the funds, and developed relationships with pastors, ministers, and religious-based organizations to sell themselves as philanthropists on a humanitarian mission. Shannon Johnson received payments and gifts from pastors and ministers who believed substantial donations would be made to their churches. Businesses and individuals wired and mailed the advance fees to multiple bank accounts controlled by the Johnsons in different states. Yvette Johnson opened bank accounts and conducted financial transactions using proceeds obtained from the Johnsons’ business activities.
According to his plea agreement, despite receiving approximately $3.7 million in advance fees from individuals and businesses, Shannon Johnson never provided the promised financing. Instead, the Johnsons used the money to support their lifestyle, which the indictment alleges included the purchase of Bentley, Mercedes Benz and BMW automobiles, the leasing of a $3.5 million residence in California for $18,000 a month, travel on private jets and the funding of the mortgage on their Laytonsville residence. Johnson admitted that he obtained $3.7 million by victimizing at least 11 individuals and businesses.
According to their plea agreements, the Johnsons also evaded taxes on the millions in income earned from the advance fee scheme. The Johnsons admitted that they filed individual tax returns for the tax years 1998 through 2001 using false W-2s to fraudulently generate a total of $66,097 in refund claims, evaded the payment of their 2002 through 2006 corporate and individual taxes totaling $98,220, and evaded the assessment of their 2007 through 2009 taxes. The Johnsons attempted to conceal their income and assets from the IRS by selling assets in their own names, titling assets in the names of nominees, using multiple bank accounts in three states to disperse and conceal income, using nominees and fraudulent taxpayer identification numbers to open and maintain bank accounts, and by using multiple business names to conduct business.Shannon Johnson and the government have agreed that if the Court accepts his plea, he will be sentenced to between four and six years in prison for conspiracy to commit wire, mail fraud, and tax evasion. Yvette Johnson faces a maximum of five years in prison for tax evasion. Shannon Johnson is detained. His bail was revoked in September, 2013, after the Court found that there was probable cause to believe that he attempted to commit another fraud while on pre-trial release for the pending charges in this case. Chief U.S. District Judge Deborah K. Chasanow has scheduled sentencing for Shannon Johnson on September 8, 2014 at 11:30 a.m. and for Yvette Johnson on September 29, 2014 at 9:30 a.m.
As part of his plea agreement, Shannon Johnson will be required to forfeit at least $3.7 million. As a special condition of their supervised release, Shannon and Yvette Johnson will both be required to cooperate with the IRS in determining all taxes owed for tax years 2002 thought 2009, and to pay the IRS all additional taxes, interest and penalties.
United States Attorney Rod J. Rosenstein commended the IRS Criminal Investigation and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant Chief John N. Kane of the U.S. Justice Department, Tax Division and Assistant United States Attorney Thomas Sullivan, who are prosecuting the case.
Hogsett Announces Kokomo Man’s Sentence for Illegal Firearm PossessionRead the Press Release
Hogsett continues aggressive fight against illegal firearm possession to protect Hoosiers
KOKOMO – Joseph H. Hogsett, United States Attorney, announced a sentence for Michael A. Hiers, 40, of Kokomo, on one count of felony possession of a firearm. Hiers was sentenced to seven years in federal prison by U.S. District Judge Tanya Walton Pratt.
“Taking those with prior felonies and firearms off of the streets is a top priority of this office,” said Hogsett. “If you have already been acquainted with the American justice system and still do not obey the law, we will prosecute you.”
In 2013, FBI investigators received information that an individual had posted photos to a Facebook account and a known white supremacist webpage. There were two photos, both showing Hiers in clan attire, including a hood, while holding a handgun and a machete. Based on the tattoos in the photographs and the known tattoos of Hiers, a federal search warrant was issued to search Hiers’ Kokomo residence for firearms and ammunition.
In July 2013, federal investigators executed a search of Hiers’ home and found a Bryco Jennings, 9 mm handgun loaded with ammunition, as well as additional ammunition in Hiers’ bedroom. Hiers told investigators he did own the gun but thought it did not work. He also stated he had intentions of fixing the firearm.
Hiers had prior convictions as a felon. In 1994 he was convicted of burglary in Miami County and in 1996 he was again convicted of burglary, this time in Knox County. Because of these prior convictions, federal law makes it illegal for Hiers to own or possess a handgun or firearm of any kind.
“This case shows the success of our Violent Crime Initiative. One of the most effective ways to prevent violence in our communities is to make sure those with prior felonies are not armed,” said Hogsett.
FBI Indianapolis Division Acting Special Agent in Charge Kevin P. Lyons stated, “The FBI will continue to work with our state and local partners to remove firearms from the hands of convicted felons.”
The United States Attorney’s Violent Crime Initiative began in 2011, and is intended to focus on the “worst of the worst” violent offenders by marshaling federal resources to provide local partners the additional tools they may need to succeed in their effort to promote peace. In 2011, only 14 firearms charges were filed. Since then, over 325 firearms cases have been prosecuted. By charging these cases federally, violent felons must serve 85 % of their sentence at a minimum.
Hogsett Announces Former Law Enforcement Officer’s Sentence for Child ExploitationRead the Press Release
Hogsett announces sentence shows success of “Operation Community Watch”
INDIANAPOLIS – Joseph H. Hogsett, United States Attorney, announced the conviction and sentencing of a former law enforcement officer on two counts of child exploitation. Derek D. Walton, 31, Liberty IND, was sentenced to 192 months (16 years) in federal prison by U.S. District Judge William T. Lawrence.
“Protecting the most innocent Hoosier victims is a top priority of this office. It doesn’t matter who you are; if you violate our children, you will be held accountable accordingly,” said Hogsett.
In 2011, federal law enforcement became aware of an account on AOL that was sending child pornography through email. This account was shut down by AOL, but another account was discovered and was traced to Walton. Federal agents served a search warrant at Walton’s home in August 2013. They located a laptop and thumb drive that contained a number of pornographic images and videos depicting a minor female. Agents also found a hidden camera in the living room which was found to contain additional explicit materials showing a minor female.
Walton was an employee of the Franklin County Sheriff’s Office where he was employed as a reserve Sheriff’s Deputy and worked as a jail officer. Prior to that position, he was employed by the Richmond Police Department and worked as a deputy marshal for the Laurel Police Department.
“The type of behavior in this case was deplorable. To think that those who vow to protect our community would commit such acts is saddening,” Hogsett said. “That is why we launched Operation Community Watch last year – to protect Hoosier families and send a message.”
This arrest comes one year after Hogsett announced a comprehensive crackdown on child exploitation in Indiana. In 2013, Hogsett launched Operation Community Watch, which has allowed prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials.
This investigation was a collaborative effort between the Federal Bureau of Investigation, the Indiana State Police and the Indianapolis Metropolitan Police Department.
FBI Indianapolis Division Acting Special Agent in Charge Kevin P. Lyons stated, “The FBI is committed to pursuing on-line child predators through our Innocent Images National Initiative. FBI agents and local and international task force members collaborate with our state and local partners daily in the fight against those who prey on our children.”
According to Senior Litigation Counsel Steve DeBrota, who prosecuted the case for the government, Walton was fined $5000 and must serve a lifetime of supervised release after completing his sentence.
Hogsett Announces Federal Bank Robbery ChargesRead the Press Release
Zionsville man allegedly robbed five banks in Central Indiana
TERRE HAUTE – Joseph H. Hogsett, United States Attorney, announced the indictment of Alan Wayne McCormick, 46, of Zionsville. McCormick was indicted on five counts of armed bank robbery.
“It is imperative that we go after those who steal peace of mind from the community,” said Hogsett. “Bank robberies put people in danger, both financially and physically.”
McCormick allegedly robbed five banks between July 2012 and March of this year. In each robbery, he followed a similar pattern and possessed a firearm or other dangerous weapon. The five banks are as follows:
• Citizens Bank, Eminence, Indiana, July 17, 2012 (Morgan County)
• First Financial Bank, (First State Bank) Poland, Indiana, September 18, 2012 (Clay County)
• Hoosier Heartland Bank, Lagoda, Indiana, August 12, 2013 (Montgomery County)
• Hoosier Heartland Bank, Linden, Indiana, January 16, 2014 (Montgomery County)
• Fountain Trust Bank, Darlington, Indiana, March 12, 2014 (Montgomery County)Investigators from the Montgomery County Sheriff’s Department obtained video surveillance after the March 12, 2014, robbery of the Fountain Trust Bank in Darlington, Indiana. The vehicle used was a newer model amethyst gray Nisan Sentra with damage to the passenger side rearview mirror.
Investigators were led to McCormick and a warrant was served on his residence in Zionsville. He later confessed to law enforcement his involvement in the five robberies he was charged with.
This was a joint investigation with the Federal Bureau of Investigation, Montgomery County Sheriff’s Department, Clay County Sheriff’s Department and the Morgan County Sheriff’s Department.
Acting FBI Special Agent in Charge Kevin P. Lyons said, “The FBI remains committed to investigating bank robberies and bringing to justice those individuals that threaten and intimidate bank employees and citizens in our communities.”
According to Assistant U.S. Attorney MaryAnn Mindrum who is prosecuting the case for the government, McCormick faces a possible term of 25 years imprisonment and a $250,000 fine if convicted on each charge.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Guatemalan Pseudoephedrine Trafficker Enters Guilty PleaRead the Press Release
ALEXANDRIA, Va. – Erick Estrada Reyes, 31, of Guatemala, pleaded guilty today to conspiring to distribute pseudoephedrine for unlawful importation into the United States and to aiding and abetting the manufacture of methamphetamine.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Derek Maltz, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Special Operations Division, made the announcement after the plea was accepted by U.S. District Judge T.S. Ellis, III.
In a statement of facts filed with his plea agreement, Estrada Reyes admitted to being involved in the sale of nearly 5,000 pseudoephedrine pills to a person he believed was involved in a methamphetamine production operation based in Houston, Texas. This individual was, in reality, a DEA cooperating witness. Estrada Reyes, along with his father, Edgar Estrada Morales, and his cousin, Victor Estrada Paredes, negotiated the sale of equipment used to extract pseudoephedrine from pill form for use in the manufacture of methamphetamine. They also discussed working for the DEA cooperator’s fictitious U.S.-based methamphetamine trafficking organization. According to the indictment, Estrada Reyes worked for his father’s operation, which sold pseudoephedrine to groups that sold methamphetamine in the United States, including the “La Familia” Mexican drug cartel.
Estrada Reyes, along with his father and cousin, were indicted on Feb. 3, 2011 by a federal grand jury for their involvement in this operation. Edgar Estrada Morales was sentenced to 14 years in prison on Aug. 2, 2013, and Victor Estrada Paredes was sentenced to 11 years in prison on July 19, 2013. Erick Estrada Reyes faces a maximum penalty of life in prison when he is sentenced on September 5, 2014.
This case was investigated by the DEA’s Special Operations Division. Assistant U.S. Attorney Michael P. Ben’Ary is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia 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.Fort Peck Man Sentenced for Glass Bottle StabbingsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, Montana, on June 6, 2014, before U.S. District Judge Brian M. Morris, DAVID V. CHASER, of the Fort Peck Reservation, was sentenced to a term of 54 months imprisonment, three years supervised release, and a special assessment of $200.
Chaser was charged with and pleaded to three counts of assault after hitting a man over the head with a glass bottle at a house, then taking its jagged remains and stabbing a woman in the face and neck with it. The injuries barely missed her jugular vein and an important artery, which could have led to massive blood loss or death. Chaser then ran to a nearby gas station where he reported to law enforcement that he had just stabbed someone.
The Court sentenced Chaser to 54 months of imprisonment, with three years of supervised release to follow. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Chaser will likely serve all of the time imposed by the court. In the federal system, Chaser does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
This investigation was conducted by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice.
Former Milwaukee Man Convicted in Federal Court of Exporting F-16 Military Parts to the Venezuelan Air ForceRead the Press Release
United States Attorney James L. Santelle announced that following a three-day jury trial, Ronald A. Dobek (age: 39), formerly of Milwaukee, WI was convicted yesterday of conspiring to export and exporting F-16 military parts to the Venezuelan Air Force (“VAF”) without a license or authority from the U.S. Department of State. The jury returned guilty verdicts on all three counts of the indictment that charged Dobek with conspiring to violate U.S. export laws and unlawfully exporting F-16 parts to Venezuela on December 29, 2007, and December 6, 2008. Dobek faces a maximum term of imprisonment of 25 years. Sentencing for Dobek has been scheduled for September 10, 2014, before Hon. Rudolph T. Randa, United States District Judge.
In furtherance of its security and foreign policy interests, the United States, through the State Department’s Directorate of Defense Trade Controls (“DDTC”), regulates and restricts the export of arms, munitions, implements of war, and defense articles, pursuant to the Arms Export Control Act, 22 U.S.C. § 2778. The regulations promulgated by the State Department which govern such exports are known as the International Traffic in Arms Regulations (“ITAR”), 22 C.F.R. §§ 120-130. The ITAR contain a list of defense articles and defense services subject to control by these regulations known as the United States Munitions List (“USML”), and is found at 22 C.F.R. § 121.1. Defense articles are items and technical data “specifically designed, developed, configured, adapted, or modified for a military application.” 22 C.F.R. § 120.3. No defense articles or defense services may be exported or otherwise transferred from the United States to a foreign national or foreign country without a license from the DDTC.
On August 17, 2006, the United States Department of State announced that it would no longer authorize the export of defense articles and services to Venezuela. Additionally, the State Department revoked all existing licenses and authorizations to export defense articles and services to Venezuela. Thus, as of that date, it became illegal to export defense articles or services to Venezuela.The evidence presented at trial showed that despite knowing about the U.S. embargo of Venezuela, Dobek conspired with a member of the VAF to supply the VAF with F-16 canopy seals for Venezuelan’s fleet of F-16 military jets. The evidence showed that Dobek exchanged numerous emails with a member of the VAF in which they discussed obtaining the F-16 canopy seals and the need to keep their operation secret. Dobek took other steps to conceal his illegal activity, including misidentifying the shipments as “t-molding” on shipping documents. As a result, Dobek sent shipments of F-16 canopy seals to a member of the VAF in Venezuela on or about December 29, 2007, and December 6, 2008.
In announcing this verdict, United States Attorney James L. Santelle stated: “Anyone who, like Ronald Dobek, elects to violate the Arms Export Control Act and the clear regulations implementing it will be investigated exhaustively—both domestically and internationally—and be convicted for crimes that jeopardize the safety and the security of our nation. I commend specially the outstanding, professional work of the special agents of the Federal Bureau of Investigation, U.S. Department of Homeland Security, Homeland Security Investigations, the Department of Defense, Office of Inspector General and of the prosecuting attorneys and staff of my office whose tenacity and focus ensured that this kind of conspiratorial engagement with foreign entities was terminated—to the benefit of all Americans.”
The case was investigated by the Federal Bureau of Investigation, with assistance from the Department of Homeland Security, Homeland Security Investigations, and the Department of Defense, Office of Inspector General. The case was prosecuted by Assistant United States Attorneys Erica O’Neil and Michael Chmelar.
Former District of Columbia Government Employee Sentenced to 20 Months in Prison for $783,876 Fraud SchemeDefendant Created Fake Accounts to Steal Medicaid, Food Stamp, and Other Benefits; Her Sister Also Participated in the SchemeRead the Press Release
WASHINGTON – Aretha Holland-Jackson, a former employee of the District of Columbia Department of Human Services (DHS), was sentenced today to 20 months in prison for carrying out a scheme that defrauded the government of more than $780,000 in Medicaid, food stamp, and other benefits, announced U.S. Attorney Ronald C. Machen Jr. and Blanche L. Bruce, Interim Inspector General of the District of Columbia.
Holland-Jackson, 45, of Bowie, Md., pled guilty in February 2014 in the U.S. District Court for the District of Columbia to a charge of conspiracy to commit wire fraud. She was sentenced by the Honorable Amy Berman Jackson. Upon completion of her prison term, Holland-Jackson will be placed on 3 years of supervised release. She must pay $783,876 in restitution to the District of Columbia government.
Holland-Jackson’s sister, Allison Holland, was sentenced by Judge Jackson on May 21, 2014, to a year and a day in prison for conspiracy to commit wire fraud for her role in the scheme. Holland, 47, of Cheltenham, Md., also pled guilty in February 2014. She must join her sister in paying the restitution. Upon completion of her prison term, Holland will be placed on three years of supervised release.
According to the government’s evidence, from February 2005 until September 2013, Holland-Jackson was employed as a social services representative in DHS’s Office of Medical Assistance. Her duties included processing applications for public assistance. She had access to DHS’s computer system and was able to open cases and activate benefits of Medicaid, food stamps, and Temporary Cash Assistance for Needy Families (TANF). DHS distributed food stamp and TANF benefits through an electronic benefits transfer card (EBT) that was provided to beneficiaries who qualified for assistance. These cards could be used at ATMs to withdraw the cash TANF benefits and at grocery stores to use the food stamp benefits.
From February 2011 through September 2013, Holland-Jackson and others, including her sister, participated in a scheme to defraud the benefits programs. Holland-Jackson used fictitious names and Social Security numbers to activate 23 fraudulent cases at DHS. She and others, including her sister, then used the EBT cards associated with these fraudulent accounts to make hundreds of thousands of dollars in cash withdrawals from ATMs and purchases at grocery stores. Allison Holland personally used three of the fraudulent EBTs. Holland-Jackson also activated Medicaid benefits in the 23 fraudulent cases.
All told, according to the court papers, the scheme cost the District of Columbia government at least $783,876: $196,596 in fraudulent food stamp benefits, $233,227 in fraudulent TANF benefits, and $354,053 in fraudulent Medicaid benefits, among other costs.
Holland-Jackson was arrested in September 2013 after a law enforcement investigation. On the day of her arrest, Holland-Jackson was caught having recently used one of the fraudulent EBT cards to withdraw cash TANF benefits from an ATM near her place of employment. Law enforcement officials recovered eight fraudulent EBT cards from Holland-Jackson’s wallet.
“Aretha Holland-Jackson abused her position of trust to loot government programs designed to help the neediest members of our community,” said U.S. Attorney Machen. “She lined her own pockets with nearly $800,000 intended to provide food and medicine to our most vulnerable neighbors. This prison sentence should deter other crooked public officials tempted to rip off taxpayers and deprive poor citizens to serve their own interests.”
“This successful prosecution is due to the commitment and collaboration of the Office of the Inspector General, the District of Columbia Department of Human Services, the Metropolitan Police Department, and our federal partner, the United States Attorney’s Office, to root out fraudulent schemes against District benefit programs and preserve public funding dedicated for those in need,” said Interim Inspector General Bruce.
In announcing the sentence, U.S. Attorney Machen and Interim Inspector General Bruce praised the work of those who investigated the case from the District of Columbia’s Office of the Inspector General. They also expressed appreciation for the assistance provided by the Metropolitan Police Department (MPD) and the District of Columbia Department of Human Services. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Corinne Kleinman and former Paralegal Specialist Diane Hayes. Finally, they commended the work of Assistant U.S. Attorney David Johnson, who prosecuted the case, and Assistant U.S. Attorney Diane Lucas, who assisted with forfeiture issues.
14-132Former Correctional Officer Sentenced for Smuggling Cell PhonesRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Curtis Drakes, aged 33, of Mitchell County, Georgia, was sentenced to serve 2 years in federal prison for conspiracy to provide contraband in prison by the Honorable W. Louis Sands, U.S. District Court Judge. The sentence was pronounced on June 5, 2014 in Albany, Georgia.Mr. Drakes entered a guilty plea to the charge on February 11, 2 014. As a part of his plea agreement, Mr. Drakes admitted that from about April 15, 2013 to May 16, 2013, while employed as a Correctional Officer at the Mize Street Detention Facility in Pelham, Georgia, he accepted money from inmates in custody at the facility in exchange for cell phones, which are prohibited objects for the inmates.
“When Mr. Drakes smuggled cell phones into a secure detention facility, he not only violated his oath, he put the safety of his fellow guards, law enforcement officers, and potential witnesses in jeopardy. We don’t need people who are locked up using cell phones to conduct illegal business or intimidate witnesses in the community,“ said U.S. Attorney Michael Moore.The case was investigated by the United States Marshal Service and the Pelham Police Department. Assistant United States Attorney Leah E. McEwen is representing the Government in the prosecution of the case.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Former Correctional Officer and Inmate Sentenced in Contraband Smuggling CaseRead the Press Release
ABILENE, Texas — A former Correctional Officer at Big Spring Correctional Center (BSCC), Matthew Castaneda, 24, and an inmate at BSCC, Ferdinand Trinidad, 45, have been sentenced for offenses related to contraband smuggling at the facility, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Today, Trinidad was sentenced by U.S. District Judge Sam R. Cummings to six months in federal prison. He pleaded guilty in February 2014 to one count of misprision of a felony. Castaneda, who pleaded guilty in January 2014 to one count of making false statements, was sentenced by Judge Cummings on May 16, 2014, to six months in federal prison and six months home monitoring. He must surrender to the Bureau of Prisons on June 20, 2014.
According to documents filed in the case, from mid-September 2012 to mid-December 2012, Castaneda accepted monetary bribes from Trinidad’s wife to smuggle cell phones and other contraband into the facility for Trinidad. Trinidad’s wife would receive the contraband at her residence and then mail it to Castaneda at BSCC. She would deposit money directly into a bank account that Castaneda had set up to hide the scheme. Castaneda admitted receiving a $1,700 bribe, and Trinidad admitted he failed to notify an authority as soon as possible that Castaneda had agreed to bring contraband into the prison in exchange for monetary bribes.
The Department of Justice Office of the Inspector General conducted the investigation. Assistant U.S. Attorney Paulina Jacobo prosecuted.
Five Worcester Residents Indicted for Marijuana Trafficking and Money Laundering SchemeRead the Press Release
BOSTON – In a 91-count superseding indictment unsealed yesterday, five Worcester residents were charged with participating in a marijuana trafficking and money laundering scheme.
Huy Anh Lam, a/k/a Henry; Nhi Ai Thi Lam, a/k/a Cindy, Cindy Nguyen, and Lien Mach; An Bao Lam, a/k/a Bao; Diemphuc Thi Lam, a/k/a Diem Lam and Deedee; and Dan Pham, all of Worcester, were charged with multiple crimes relating to the scheme, including conspiracy to possess with intent to distribute 100 kilograms or more of marijuana, money laundering conspiracy, structuring conspiracy, structuring transactions to evade reporting requirements, money laundering, unlawful monetary transactions, perjury, and aiding and abetting.
The first three defendants, Huy Lam, Nhi Lam, and An Bao Lam, were arrested yesterday in Worcester and appeared in U.S. District Court in Boston. All have been detained in custody pending a detention hearing which is scheduled for the afternoon of, June 10, 2014, in Boston.
Among other offenses, the superseding indictment alleges from April 2009 until the present, four of the defendants, Huy Lam, Nhi Lam, An Bao Lam, and Diemphuc Lam, conspired to traffic at least 100 kilograms of marijuana and that the conspiracy involved criminal activity in Massachusetts, Connecticut, New Hampshire, Rhode Island, California, and Washington State.
The superseding indictment alleges that all five defendants conspired to launder hundreds of thousands of dollars in drug proceeds in the course of renting vacation homes in Connecticut, Rhode Island, and New Hampshire. The defendants conspired by receiving shipped packages of marijuana at the vacation homes, and exchanging cash drug proceeds in small denomination bills for apparently “clean” money by stuffing “huge amounts” of cash into casino slot machines in Connecticut and Rhode Island and then withdrawing it from the casinos in $100 bills. Furthermore, the defendants shipped large amounts of currency from New England to California and Washington via the U.S. Postal Service, Federal Express, and United Parcel Service. The defendants used drug proceeds in Massachusetts to purchase real property and luxury vehicles, including a 2012 Range Rover Sport SUV, a 2013 Cadillac Escalade, and a 2013 Nissan GT-R custom-built sports car. The vehicles have been seized by law enforcement for possible forfeiture in the criminal case.
The charge of marijuana conspiracy carries a mandatory minimum sentence of five years and maximum sentence of 40 years in prison, a minimum of four years of supervised release and a $5 million fine. Each count of money laundering carries a maximum sentence of 20 years in prison, three years of supervised release and a fine of $500,000 or twice the value of the laundered property. Each unlawful monetary transaction charge carries a maximum sentence of 10 years in prison, three years of supervised release and a fine of $250,000 or twice the value of the property involved. Each count of structuring carries a maximum sentence of 10 years in prison, three years of supervised release and a fine of $250,000. Perjury carries a maximum sentence of five years in prison, three years of supervised release and a fine of $250,000.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Michael Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. The case is being prosecuted by Richard L. Hoffman and Timothy E. Moran of Ortiz’s Strike Force Unit, Cory Flashner of Ortiz’s Worcester Branch Office and Doreen Rachal of Ortiz’s Asset Forfeiture Unit.
The details contained in the superseding indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Five Men Indicted for Roles in Investment Fraud SchemeRead the Press Release
A federal grand jury returned a 52-count superseding indictment against Mark O. Wittenmyer, age 54, of Holland, Ohio; Robert Milam, age 64, of League City, Texas; Lonny Remmers, age 56, of Corona, California; Mark Aller, age 50, of Birmingham, Michigan; and Douglas Boyce, age 56, of Maumee, Ohio. The indictment includes multiple charges including conspiracy, wire fraud, money laundering, securities fraud, and access device fraud.
The indictment was announced by Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge, FBI Cleveland Division, and Kathy Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
The indictment charges that from in or around January 2003, and continuing through May 2014, Wittenmyer, Milam, Remmers, Aller, Boyce, and others, conspired to solicit and collect investments, expenses, consulting fees, salaries and other payments in connection with investment and financing transactions induced by false and fraudulent pretenses, representations, and promises. The conspirators used several business entities to promote and induce investments, including Spring Valley Marketing Group, Community ISP, Momentum Management, OnLetterhead, bSecured Solutions, New Dimension Fund, and RM Capital.
False statements were made to investors, lenders, and other participants regarding past successes in arranging investments transactions for the purpose of inducing investments. Wittenmyer used the participation, and purported participation, of attorneys and other professionals to confer an aura of legitimacy to potential investors. Wittenmyer often fraudulently requested that investors and lenders advance funds for travel, legal fees, and other various expenses, which the conspirators then used for personal living expenses, according to the indictment.
In addition to each defendant being charged with one count of conspiracy to commit wire fraud, Wittenmyer is charged with eight counts of wire fraud, 32 counts of money laundering, six counts of securities fraud and two counts of access device fraud.
Milam is also charged with two counts of wire fraud and one count of money laundering.
Remmers is also charged with two counts of wire fraud.
Aller is also charged with three counts of wire fraud and one count of money laundering, and Boyce is charged with one count of money laundering.
If convicted, each defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including any prior criminal record, respective roles in the offense and the characteristics of the violations. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.“The investing public needs to watch for fraudsters and scam artists who promise the moon and sun, but deliver only pain and deceit. Remember, if it sounds too good to be true, it probably is,” Dettelbach said.
“These individuals enriched themselves with hundreds of thousands of ill-gotten dollars by creating and carrying out various fraudulent schemes. The FBI will continue to work with our law enforcement partners to bring to justice those that steal the hard earned money of others,” Anthony said.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation, both of Toledo, Ohio. The case is being prosecuted by Assistant United States Attorneys Gene Crawford and James V. Moroney.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
First Conspirator Pleads Guilty in Conspiracy to Distribute and Sell Millions in Contraband CigarettesRead the Press Release
Transported Contraband Cigarettes from Maryland to New York
Baltimore, Maryland - Adam Azerman, age 59, of Pikesville, Maryland, pleaded guilty today to conspiracy to traffic in contraband cigarettes.
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; Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.According to his guilty plea, Azerman conspired with other to receive, possess, sell and distribute contraband cigarettes, that is, cigarettes on which the applicable state taxes have not been paid. The cigarettes were sold and distributed in quantities of 10,000 cigarettes or more, and bore no evidence of the payment of applicable state sales taxes. Co-conspirators obtained contraband cigarettes, which were transported from Maryland to Brooklyn, New York, and sold at a profit to individuals in New York, who further distributed the contraband cigarettes.
Azerman transported contraband cigarettes from Maryland to Brooklyn, using a van registered in his name. Following a delivery of contraband cigarettes in Maryland, members of the conspiracy arranged for the contraband cigarettes to be loaded into Azerman’s van. Azerman drove his van from Maryland to Brooklyn, New York, where he met a co-conspirator and provided him with the keys to the van. The co-conspirator would take the van and return a few hours later, after having unloaded the contraband cigarettes into a nearby warehouse. Azerman would drive the van back to Maryland. On the days that Azerman transported contraband cigarettes, he used his cell phone to communicate with co-conspirators in New York and Maryland.
Co-conspirators in Maryland purchased quantities of contraband cigarettes on 18 occasions between December of 2011 and November of 2013 from an undercover FBI agent operating in the Baltimore County, Maryland area. These transactions included thousands of cartons of contraband cigarettes. At the time of the indictment the cigarette tax in Maryland was $2.00 per package of cigarettes ($20 per carton of cigarettes) and the cigarette tax in New York was $4.35 per package of cigarettes ($43.50 per carton of cigarettes). The total tax evaded was more than $1 million.
Azerman faces a maximum sentence of five years in prison for conspiracy to traffic in contraband cigarettes. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for September 11, 2014 at 1:00 p.m.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, U.S. Food & Drug Administration, Office of Criminal Investigations and Office of Inspector General of the Department of Health and Human Services – Office of Investigations for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Paul E. Budlow and John W. Sippel, Jr., who are prosecuting the case.
Felon Facing 8 Year Prison Term Gets Additional 27 Month Sentence for Possessing ‘Shanks’ at Federal PrisonRead the Press Release
A repeat felon was sentenced to an additional 27 months on top of an eight year sentence for possession of dangerous weapons at the Federal Detention Center, announced U.S. Attorney Jenny A. Durkan. JOHN CHRISTIAN PARKS, 38, of Belfair, Washington was sentenced in January 2014 to eight years in prison for being a felon in possession of firearms. PARKS was found guilty of that charge following a jury trial in October 2013. On April 10, 2014, PARKS pleaded guilty to providing or possessing contraband in prison. Chief Judge Marsha J. Pechman ordered the 27 month sentence to run consecutive to the eight year sentence saying that the crime is “very, very significant because it presents such a danger to everyone at the Federal Detention Center – guards and inmates.”
According to filings in the case, guards at the prison observed what appeared to be the passing of contraband between PARKS and a visitor. PARKS appeared to be in a drugged state following the visit, so he was put in a special cell and his cell was searched. At the bottom of a box of PARKS’ papers were two sharpened black metallic objects that appeared to be homemade weapons. Both weapons are between four and five inches in length, with one wrapped in a fabric in such a way as to provide a handle. Both weapons resemble what is commonly referred to as a “shank.”
PARKS has eight prior felony convictions. He was most recently arrested on March 30, 2013 while target shooting in the Mt. Baker-Snoqualmie National Forest. U.S. Forest Service officers heard multiple shots and were directed to the group by a witness who said he had encountered the armed men. Law enforcement recovered eight firearms, including four assault rifles. Evidence introduced at trial revealed PARKS had illegally purchased and possessed two of the assault rifles.
This most recent case involving weapons in the federal facility was investigated by the Bureau of Prisons. The case was prosecuted by Special Assistant United States Attorney Stephen Hobbs. Mr. Hobbs is a Senior Deputy King County Prosecutor specially designated to prosecute firearms cases in federal court.
Federal Jury Finds Brevard County Man Guilty of Receiving and Possessing Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that a federal jury, in Jacksonville, has found Richard Dale Brooks (55, Cocoa) guilty of receiving videos of child pornography and possessing an image of child pornography using the Internet. Brooks faces a minimum of five years, up to twenty years in federal prison on each of the five receipt charges, and up to ten years’ imprisonment on the possession charge. After the return of the jury’s verdict, Brooks was remanded to the custody of the United States Marshals Service to await his sentencing hearing, which is scheduled for September 15, 2014.
According to testimony and evidence introduced during the trial, during 2012, a Jacksonville Sheriff’s Office law enforcement officer identified videos depicting child pornography over the Internet as coming from a host computer using Internet Protocol (IP) addresses that traced back to Brooks’s residence in Jacksonville, Florida. On August 2, 2012, a search warrant was executed at this residence. Law enforcement officers entered the residence and recovered five computers and several other computer media. During an interview, Brooks told detectives that he was the primary user of the computer, that he used a file-sharing program to download video files of adult pornography, and that he has also received child pornography via the file-sharing program. A subsequent forensic analysis of Brooks’s computers revealed that he had at least 245 files depicting children engaged in sexually explicit conduct and that he had compact discs and a DVD containing the same.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Jacksonville Sheriff’s Office, and other agencies that comprise the North Florida Internet Crimes Against Children Task Force. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
It is another case 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.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla. — The results of the June 2014 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. The return of an indictment is a method of informing the defendant of alleged violations which must be proven in a court of law beyond a reasonable doubt to overcome the defendant’s presumption of innocence.
Michael D. Bennett and Gabriel Martinez. Possession of Marijuana with Intent to Distribute and Maintaining a Location for Storing and Distributing Marijuana. Bennett, 29, of Tulsa, and Martinez, 22, of Oklahoma City, are charged with possessing marijuana with intent to distribute. Bennett is also charged with maintaining an apartment for the purpose of storing and distributing marijuana. If convicted, the maximum penalty is five years in prison and a fine of $250,000 for marijuana possession with intent to distribute. In addition, Bennett faces a maximum of 20 years in prison and a $500,000 fine if convicted for maintaining a drug storage space. The defendants would also forfeit seized currency, a firearm and face entry of a criminal forfeiture money judgment. The Federal Bureau of Investigation is the investigative agency.
Ashley Johnson Calhoun. Bank Fraud. Johnson, 41, of Muskogee, is charged with nine counts of committing bank fraud against Arvest Bank, Bank of Oklahoma, and JPMorgan Chase Bank by means of forged checks. If convicted, the maximum penalty is 30 years in prison and a $1,000,000 fine. The United States Postal Inspection Service is the lead investigative agency.
Marcos Cereceres-Romero. Alien in the United States After Deportation. Cereceres-Romero, 23, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in July of 2008 near Presidio, Texas. If convicted, the maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) is the lead investigative agency.
Oscar Escalera-Duron. Alien in the United States After Deportation. Escalera-Duron, 33, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in October of 2006 near Laredo, Texas. If convicted, the maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) is the lead investigative agency.
Aylediz Leon-Cuba. Possession of Methamphetamine with Intent to Distribute. Leon-Cuba, 34, of Tulsa, is charged with possessing 50 grams or more of methamphetamine with intent to distribute. If convicted, the minimum penalty is five years in prison and the maximum penalty is 40 years in prison along with a $5,000,000 fine. The defendant would also forfeit seized currency and a firearm. The Drug Enforcement Administration is the lead investigative agency.
Heron Marquez Ramirez and Sergio Guadalupe Gonzalez. Drug Conspiracy. Marquez Ramirez, 27, of Oklahoma City, and Guadalupe Gonzalez, 52, of Lancaster, Texas, are charged with conspiring to distribute 500 grams or more of cocaine. If convicted, the minimum penalty is five years in prison and the maximum penalty is 40 years in prison along with a $5,000,000 fine. The defendants would also forfeit a seized Porsche and face entry of a criminal forfeiture money judgment. The Federal Bureau of Investigation is the lead investigative agency.
Ulyssis Ramirez. Possession of Cocaine with Intent to Distribute. Ramirez, 23, of Oklahoma City, is charged with possessing cocaine with intent to distribute. If convicted, the maximum penalty is 20 years in prison and a $1,000,000 fine. The defendant would also forfeit seized currency, a vehicle and face entry of a criminal forfeiture money judgment. The Federal Bureau of Investigation is the lead investigative agency.
Feliciano Saldana-Juarez. Alien in the United States After Deportation. Saldana-Juarez, 48, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in March of 2012 near Brownsville, Texas. If convicted, the maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) is the lead investigative agency.
Gregory Lynn Shrader. Felon in Possession of Firearm and Ammunition. Shrader, 55, of Jay, Oklahoma, is charged with possessing a 12 GA gauge shotgun, a .45 ACP rifle, a 9mm rifle, and ammunition after prior felony convictions in Arkansas. Those convictions include terroristic threatening, theft by receiving, and attempt to manufacture a controlled substance. If convicted, the maximum penalty is 10 years in prison and a $250,000 fine. The defendant would also forfeit three firearms. The Bureau of Alcohol, Tobacco, Firearms and Explosives in conjunction with the Federal Bureau of Investigation investigated this matter.
Duval County Men Plead Guilty to Manufacturing and Passing Counterfeit CurrencyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Christopher Jon Kirkland (41) and William Brinkley, Jr. (35), both of Jacksonville, yesterday pleaded guilty to manufacturing and aiding and abetting the passing of counterfeit Federal Reserve Notes. Each faces a maximum penalty of 20 years in federal prison. As part of the plea agreement, both men agreed to forfeit the computer equipment used to manufacture the counterfeit currency.
Kirkland and Brinkley, Jr. were originally indicted on February 27, 2014.
According to the plea agreements, in approximately August 2013, Kirkland began manufacturing counterfeit $20 and $100 Federal Reserve Notes. Once Kirkland manufactured the counterfeit currency, Brinkley drove Kirkland around to various businesses in Florida and Georgia in order to pass the counterfeit currency. The two passed the counterfeit currency in order to obtain merchandise and reloadable gift cards. They also returned fraudulently-obtained merchandise in order to obtain genuine currency. From approximately August 2013 to December 2013, the men passed or attempted to pass approximately $32,600 in counterfeit currency in Florida, to include Duval County, St. Johns County, Volusia County, and Glynn County, Georgia. The currency was passed at locations including Target, CVS, Kirkland’s, Winn-Dixie, OfficeMax, Family Dollar, Old Navy, Lowe’s, Belk, and Dollar General.
Another co-defendant, Timothy Larry Malden, is charged in the same indictment. His case is scheduled to proceed at trial on September 2, 2014.
This case was investigated by United States Secret Service - Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Durham Man Sentenced for Child PornographyRead the Press Release
GREENSBORO, N.C. – A Durham, North Carolina, man has been sentenced for his involvement with child pornography, announced United States Attorney Ripley Rand.
On June 5, 2014, William Lee Ebenstein, age 57, was sentenced to 144 months in prison, 10 years of supervised release, a $10,000.00 fine, and a $100.00 special assessment for receiving child pornography. Court documents revealed that Ebenstein used the Internet to receive child pornography. United States District Judge Catherine C. Eagles imposed the sentence.
The case was investigated by the Duke University Police Department, Durham Police Department and the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Anand Ramaswamy.
Convicted Sex Offender Sentenced to More Than 24 Years for Attempted Enticement of A MinorRead the Press Release
Orlando, Florida – United States District Judge John Antoon II yesterday sentenced Todd Leslie Kroeber (43, Port St. Lucie) to 24 years and 5 months in federal prison, to be followed by a lifetime of supervised release, for the attempted sexual enticement of a minor. He was found to be a repeat and dangerous sex offender against minors. Kroeber pleaded guilty to the offense on January 17, 2014.
According to court documents, on July 19, 2013, Kroeber answered an advertisement on a public classified ad website, where he met an undercover agent online. The agent was posing as a 19-year-old asking for help with his 14-year-old brother. The following day, Kroeber traveled to Rockledge, Florida, from Port St. Lucie, Florida, to have sex with the 14-year-old. Kroeber also transported another minor to the location. During the drive, Kroeber told the minor that he would have sex with the 14-year-old and the minor.
This case was investigated by the Federal Bureau of Investigation and the Brevard County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Christopher LaForgia.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Claremont, Minnesota Man Sentenced for Conspiring to Distribute Methamphetamine and Illegal Firearms UsageRead the Press Release
MINNEAPOLIS — Yesterday in federal court, a 38-year-old Claremont man was sentenced for conspiring to distribute methamphetamine and illegal firearms possession. United States District Court Judge Richard H. Kyle sentenced Clancy Shane Amy to 78 months in federal prison, followed by five years of supervised release. Amy, who was indicted on May 6, 2013, pleaded guilty to one count of Conspiracy to Distribute Methamphetamine as well as one count of Using and Carrying a Firearm During and in Relation to a Drug Trafficking Offense.
In his plea agreement, Amy admitted that from at least August 2012 through March 2013, he conspired with others to distribute methamphetamine from Texas to areas within southeastern Minnesota. Amy admitted that his actions were part of a larger drug distribution enterprise which was operated by multiple conspirators between Minnesota and other areas of the United States. Further, Amy admitted that during a law enforcement search of his home on April 16, 2013, agents found various items associated with the distribution of methamphetamine, including 112 grams of methamphetamine packaged in multiple plastic baggies as well as multiple firearms. Amy also admitted that he possessed one of the firearms for security and protection in his drug distribution efforts – namely a Browning .22 caliber semi-automatic handgun found in a bedroom safe with some of the recovered methamphetamine and U.S. currency.
This case was the result of an investigation by the Minnesota Bureau of Criminal Apprehension, the Drug Enforcement Administration, the South Central Drug Investigation Unit, and the Southeast Minnesota Narcotics and Gang Task Force. It was prosecuted by Assistant United States Attorney Allen A. Slaughter.Cedar Rapids Man Charged with Bank RobberyRead the Press Release
Jacob Allen Mack, 24, from Cedar Rapids, Iowa, has been charged with one count of bank robbery. The charge is contained in an Indictment filed on June 4, 2014, in United States District Court in Cedar Rapids.
The Indictment alleges that, on or about May 2, 2014, Mack robbed the Hills Bank in downtown Cedar Rapids.If convicted, Mack faces a possible maximum sentence of twenty years’ imprisonment, a $250,000 fine, a $100 special assessment, and five years of supervised release following any imprisonment.
Mack appeared on June 5, 2014, in federal court in Cedar Rapids and was held without bond. Mack’s next appearance for trial is set for August 4, 2014.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Cedar Rapids Police Department.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number is 14-CR-0060.