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29 July 2014
Bates City Man Sentenced to 21 Years in PrisonRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that five defendants were sentenced in federal court today for their roles in a conspiracy to use identity documents, checks and credit cards that were either found in stolen vehicles or pilfered from vehicles to make fraudulent purchases and to obtain methamphetamine.
Jason Rockwell Thompson, 30, of Bates City, Mo., was sentenced by U.S. District Judge Dean Whipple to 21 years and 10 months in federal prison without parole. The court also ordered Thompson to pay $45,012 in restitution.
Co-defendants Christopher Lee Curd, 29, and his brother Robert Alva Curd, 30, both of Kansas City, Mo., Roberta Anne Welty, 28, of Blue Springs, Mo., and Brandi Nicole Neely, 32, of Arnold, Mo., were also sentenced today. Christopher Curd was sentenced to one year and one day in federal prison without parole and ordered to pay $3,584 in restitution. Robert Curd was sentenced to 15 months in federal prison without parole and ordered to pay $3,560 in restitution. Roberta Welte was sentenced to 18 months in federal prison without parole and ordered to pay $4,271 in restitution. Neely was sentenced to 14 months in federal prison without parole and ordered to pay $7,055 in restitution.
On Feb. 7, 2014, Thompson pleaded guilty to leading the conspiracy to illegally transport stolen vehicles and to commit bank fraud, access device fraud, identity theft and wire fraud between Oct. 19, 2007, and Jan. 10, 2008. Thompson also pleaded guilty to one count of bank fraud.
Thompson admitted that he stole 10 vehicles in November and December 2007. Thompson also admitted that he was in possession and transported several more stolen vehicles, and that he stole numerous checks, credit cards and other identity documents from several other vehicles.
For example, on Dec. 23, 2007, Thompson stole two vehicles in Independence, pilfered a vehicle in Lee’s Summit, stole a vehicle in Lee’s Summit and transported it to Overland Park, Kan.; stole two vehicles in Overland Park, pilfered two vehicles in Overland Park, possessed and operated a stolen vehicle, and transported one of the stolen vehicles from Overland Park to Missouri. On Dec. 24, 2007, Thompson stole a vehicle in Lenexa, Kan., and transported it to Independence, Mo. He also pilfered nine vehicles in Lenexa on that day.
Thompson admitted that he attempted to purchase $1,201 worth of merchandise at a Kohl’s store in Independence with a stolen credit card on Oct. 19, 2007. On that day, he also possessed a stolen Social Security card and stolen credit cards belonging to another person whose vehicle had been stolen; a driver’s license from another person whose vehicle had been stolen; a stolen Social Security card from another victim; and stolen personal checks from four additional victims.
Thompson admitted that he purchased (or attempted to purchase) hundreds of dollars worth of merchandise at various retail businesses using numerous identify documents and credit cards that had been stolen from various vehicles.
Co-defendants Jennifer J. Leone, 34, and Nicholas E. Dobbins, 24, both of Kansas City, Mo., have also pleaded guilty and been sentenced. Co-defendant Melinda R. Kermer, 27, of Raytown, Mo., pleaded guilty and awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the Overland Park, Kan., Police Department.Baltimore Man Sentenced to 5 Years in Prison for Conspiracies to Pass Counterfeit Money and to Launder MoneyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Larry L. Barringer, age 54, of Baltimore, today to five years in prison, followed by three years of supervised release, for conspiracy to pass counterfeit $100 bills and for conspiracy to commit money laundering. Judge Messitte ordered Barringer to pay restitution of $18,600 and to forfeit $30,001, plus electronics involved in the scheme.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kathy A. Michalko of the United States Secret Service - Washington Field Office.
According to Barringer’s plea agreement, from January 4 through March 5, 2013, Barringer conspired with his nephew, Donte Barringer, Jamarr Little and others to pass counterfeit $100 bills. Specifically, the conspirators used counterfeit $100 bills to purchase inexpensive merchandise and receive change in genuine currency; to purchase money orders and prepaid money cards, including Greendot cards; and to purchase expensive merchandise, such as computers. The conspirators exchanged the merchandise purchased with the counterfeit $100 for genuine U.S. currency and used the money orders and money cards purchased with the counterfeit bills to conduct other financial transactions.Judge Messitte found that in the conspiracy to pass counterfeit money and in the money laundering conspiracy, the loss attributable to Barringer exceeded $30,000.
Donte Barringer, age 37, and Jamarr Little, age 21, both of Washington, D.C., have each pleaded guilty to the counterfeiting conspiracy and are awaiting sentencing.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service – Washington Field Office for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Thomas P. Windom, who prosecuted the case.
Baltimore Career Offender Exiled to over 12 Years in Prison for Drug DistributionRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Langston Jackson, age 30, of Baltimore, today to 151 months in prison, followed by three years of supervised release, for possession with the intent to distribute cocaine.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein
According to Jackson’s plea agreement, on October 10, 2013, investigators from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Baltimore Police Department executed a search warrant at Jackson’s residence in Baltimore. Jackson was found at the location and a search recovered narcotics packaged for street level distribution and narcotics packaging materials. A search of Jackson’s vehicle recovered a large sum of cash. After being Mirandized and waiving his rights, Jackson told investigators that he was storing cocaine at another residence in Baltimore. Later that day, agents searched that location and found in a room used by Jackson, approximately 25 grams of cocaine, a large sum cash and additional narcotics packaging materials, including three digital scales.United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Clinton J. Fuchs and Scott A. Lemmon, who prosecuted the case.
Armed Career Criminal from Roswell Pleads Guilty to Federal Firearms and Drug Trafficking ChargesRead the Press Release
ALBUQUERQUE – Raymond Lariva, 30, of Roswell, N.M., pleaded guilty this morning in federal court in Las Cruces, N.M., to federal firearms and drug trafficking charges. The guilty plea was announced by U.S. Attorney Damon P. Martinez, 5th Judicial District Attorney Janetta B. Hicks, Special Agent in Charge Bernard J. Zapor of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Phil Smith of the Roswell Police Department.
U.S. Attorney Damon P. Martinez said that Lariva was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
"We are pleased to join our federal partners in removing these violent offenders from our community," said 5th Judicial District Attorney Janetta B. Hicks.
ATF Special Agent in Charge Bernard J. Zapor said taking violent criminals off the streets and putting them behind bars has always been a focus of ATF. “We commend the agents and officers who repeatedly risk their lives to remove these violent offenders from our communities. I wish to recognize the leadership of U.S. Attorney Damon P. Martinez and his office for their relentless prosecution of these violent offenders.”
Court records reflect that Lariva was arrested in Roswell on state charges in Dec. 31, 2012, after he attempted to avoid capture on an outstanding state warrant. On Oct. 15, 2013, Lariva was transferred to federal custody to face related federal charges in a criminal complaint that had been filed in Jan. 2013. The state charges subsequently were dismissed in favor of federal prosecution.
According to court filings, on Dec. 31, 2012, an officer of the Roswell Police Department came upon Lariva while responding to a call. The officer, who recognized Lariva and was aware of a pending warrant for his arrest, attempted to make contact with Lariva. Lariva took off running and a foot chase ensued. During the chase, Lariva threw a small black pouch over his shoulder followed by a phone case, identification card and other items. After Lariva was arrested, officers retrieved the black pouch which contained numerous small baggies containing methamphetamine. On Jan. 3, 2013, after reviewing recorded telephone calls made by Lariva while in state custody, officers found a loaded pistol and Lariva’s cellphone on the rooftop of a building in the area in which the pursuit had taken place.
Lariva was indicted on Jan. 15, 2014, and charged with (1) being a felon in possession of a firearm and ammunition; (2) using and carrying a firearm during and in relation to a drug trafficking crime; and (3) possession of methamphetamine with intent to distribute. The indictment alleged that Lariva committed the offenses charged in Chaves County, N.M., on Dec. 31, 2012. At the time, Lariva was prohibited from possessing firearms or ammunition because he previously had been convicted of robbery, possession of a controlled substance, conspiracy to commit burglary and being a felon in possession of a firearm.
During today’s proceedings, Lariva entered a guilty plea to the three-count indictment without the benefit of a plea agreement.
Lariva has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. Lariva faces an enhanced sentence of not less than 15 years to life in prison on the felon in possession and methamphetamine charges based on his status as an armed career offender. He also will be sentenced to a mandatory five years in prison for using a firearm during a drug trafficking crime which must be served consecutive to the prison sentence imposed on the other two charges.
This case was investigated by the Roswell office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Roswell Police Department with assistance from the 5th Judicial District Attorney’s Office. Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Alabama Man Pleads Guilty to Involvement in Identity Theft Scheme Using Prisoner Names and Corrupt U.S. Postal Service EmployeeRead the Press Release
Gregory Slaton pleaded guilty today to one count of conspiracy to file false claims for his involvement in a Stolen Identity Tax Refund (SIRF) scheme, Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama announced.
According to the court documents and court proceedings, Gregory Slaton conspired with his wife, Jacqueline Slaton, of Montgomery, Alabama, his brother-in-law, Harvey James, of Birmingham, Alabama, and a U.S. Postal Service employee, Vernon Harrison, also of Montgomery, to file false tax returns using stolen identities. James and Jacqueline Slaton obtained stolen identities, including identities of inmates, and used those identities to file the false tax returns. They directed the fraudulently claimed tax refunds to prepaid debit cards and checks. Gregory Slaton recruited Harrison into the conspiracy, who then provided Gregory Slaton with mailing addresses on his postal route to which they could mail the fraudulently claimed prepaid debit cards. James and Jacqueline Slaton then directed the tax refunds issued via debit cards and checks to be sent to specified addresses on Harrison’s mail route. Gregory Slaton would then collect the cards and checks from Harrison and pay Harrison.
Harrison was previously convicted at trial for conspiracy to file false claims and multiple counts of mail fraud, theft of mail and aggravated identity theft, and was sentenced to serve 111 months in prison. James pleaded guilty to one count of mail fraud and one count of aggravated identity theft, and was sentenced to serve 110 months in prison. Jacqueline Slaton pleaded guilty to filing a false claim and aggravated identity theft, and was sentenced to serve 70 months in prison. A sentencing date has not been scheduled for Gregory Slaton.
The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Postal Service’s Office of the Inspector General. Trial Attorneys Jason Poole and Michael Boteler of the Tax Division are prosecuting the case with the assistance of Assistant U.S. Attorney Todd Brown of the U.S. Attorney’s Office for the Middle District of Alabama.
Additional information about the Tax Division and its enforcement efforts may be found at the division website .
Akron Pair Face Fentanyl, Firearms ChargesRead the Press Release
A six-count indictment was filed in federal court today charging two people from Akron for their roles in distributing fentanyl, as well as firearms charges, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Willie Brantley, 28, and Kelsey Zastudil, 21, were both indicted on charges of conspiracy to possess with intent to distribute fentanyl, possession of fentanyl, maintaining a drug premises, and prohibited persons being in possession of a firearm.
Brantley obtained fentanyl in May 2014 and distributed it with Zastudil’s permission from a location on Sweitzer Avenue in Akron, according to the indictment.
On May 28, Brantley and Zastudil were found to have a Cobra .38 special Derringer and ammunition, despite Brantley having been previously convicted of trafficking in cocaine and marijuana in Summit County Common Pleas Court, and Zastudil being under indictment in Summit County on charges of theft of drugs.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role 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 matter is being prosecuted by Assistant United States Attorney Teresa L. Riley following an investigation by the Akron Police Department Narcotics and Street Narcotics Uniformed Detail and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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.
28 July 2014
West Milford Resident Convicted on Tax ChargeRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – A 54 year old West Milford, West Virginia, resident entered a plea of guilty before Magistrate Judge John S. Kaull.
United States Attorney William J. Ihlenfeld, II, announced that Pamela S. Bailey entered a plea of guilty to filing a false personal income tax return for tax year 2011. Bailey understated her gross income resulting in an unpaid tax due and owing of approximately $42,097.58.
Bailey, who is free on bond pending sentencing scheduled for November 21, 2014, faces up to 3 years in prison.
This case was prosecuted by Assistant United States Attorney Robert H. McWilliams, Jr. and investigated by the Internal Revenue Service.
Vascular Solutions Inc. to Pay $520,000 to Resolve False Claims Allegations Relating to Medical DeviceRead the Press Release
Vascular Solutions Inc. (VSI) has agreed to pay $520,000 to resolve allegations that it caused false claims to be submitted to federal health programs by marketing a medical device for the ablation (or sealing) of perforator veins without FDA approval and despite the failure of its own clinical trial, the Justice Department announced today. VSI is a medical device company based in Minneapolis, Minnesota.
“The FDA approval process and clinical studies serve an important role in ensuring that federal health care participants receive devices that are medically appropriate and necessary,” said Assistant Attorney General Stuart F. Delery for the Justice Department’s Civil Division. “We will not permit companies to circumvent that process and put profits over patient safety.”
VSI markets and sells medical devices that treat varicose veins by sealing the veins with laser energy (endovenous laser ablation). Their products include consoles, which generate the laser energy, and accessory kits. Kits include needles to access the veins, laser fibers that carry the laser energy, and sheaths that guide the laser fiber to the area to be ablated and protect the parts of veins not being ablated. In particular, VSI marketed and sold the “Vari-Lase Short Kit” medical device. The kit contained a sheath that was shorter than other kits, which made it easier to treat vein segments that were shorter in length.
VSI’s “Short Kit” was approved only for the treatment of surface or superficial veins in the leg, which run near the surface of the body, and not for perforator veins, which connect the surface veins to deeper veins in the leg muscle. The government alleged that VSI knowingly promoted the “Short Kit” for the ablation of perforator veins even though VSI had attempted to and failed to get FDA marketing clearance for ablation of this particular type of vein, and VSI had conducted a clinical trial of the “Short Kit” for ablating perforator veins that failed to meet both safety and efficacy benchmarks. As a result of this conduct, the government alleged that VSI knowingly caused physicians and other purchasers of the “Short Kit” to submit false claims to federal health care programs for uses of the “Short Kit” that were not reimbursable.
“The settlement announced today should make it clear that the Department of Justice will pursue companies that knowingly promote medical devices for unapproved uses, causing federal health care programs to pay for services that cannot be reimbursed,” said U.S. Attorney Robert Pitman for the Western District of Texas.
“Medical device manufacturers that ignore rules designed to protect patients in order to boost profits will be held accountable for their actions,” said Special Agent in Charge Mike Fields for the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Dallas region. “We will continue to work with the Department of Justice to root out all forms of waste, fraud, and abuse in our federal health care programs.”
The allegations resolved by today’s settlement were raised in a lawsuit filed against VSI by DeSalle Bui, a former sales representative at VSI, under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens with knowledge of false claims to bring civil actions on behalf of the government and to share in any recovery. Mr. Bui’s share of the settlement has not been determined.
The case was handled by the Commercial Litigation Branch of the Justice Department’s Civil Division, and the U.S. Attorney’s Office for the Western District of Texas. Assistance was provided by the Defense Health Agency, the Office of Personnel Management, and the HHS-OIG and Office of General Counsel.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $20.2 billion through False Claims Act cases, with more than $14 billion of that amount recovered in cases involving fraud against federal health care programs.
The claims settled by this agreement are allegations only, and there has been no determination of liability. The lawsuit is captioned United States ex rel. DeSalle Bui v. Vascular Solutions, Inc., No. A10CA883-SS (W.D. Tex.).
Turkish Man Extradited from the Republic of Georgia Sentenced to More Than Nine Years for Computer Hacking and Identity TheftRead the Press Release
Orlando, Florida – Senior U.S. District Judge John Antoon, II sentenced Alper Erdogan (35, a Turkish citizen residing in Baku, Azerbaijan) to nine years and four months in federal prison for conspiracy to commit computer hacking, conspiracy to commit credit card fraud, and aggravated identity theft. In February 2014, Erdogan was extradited from the Republic of Georgia, where he had travelled from Azerbaijan, to the United States to face the charges contained in the indictment in this case. Erdogan was initially indicted in September 2012. He pleaded guilty on April 18, 2014. He was sentenced on July 25, 2014.
According to the plea agreement, in September 2010, the United States Secret Service learned that the computer servers of a hotel in San Diego had been hacked and malicious software had stored credit card magnetic track data that was then remotely accessed and, eventually, used at retail stores throughout the United States. In a series of prosecutions related to the United States v. Chad Warner et al., the government prosecuted and secured convictions against 17 individuals who used the stolen credit card numbers in the United States.
As the investigation progressed, agents learned that the conspirators in the United States purchased the stolen credit card account numbers from Erdogan who was then located in Azerbaijan. Erdogan made in excess of $1.2 million in fraudulent credit card charges between June 2010 and the execution of federal search warrants in March 2011. During the course of the charged conspiracies, Erdogan provided criminals throughout the United States with thousands of stolen and hacked credit card numbers and the personal information of Americans. In doing so, Erdogan entered into a conspiracy with hackers located in Eastern Europe and Central Asia. Erdogan perpetrated his offenses and communicated with his conspirators solely over the Internet; acting as a broker and providing the stolen and hacked information to criminals in the United States for the purpose of allowing them to commit fraud using that information.
“United States citizens are increasingly the victims of computer hacking, identity theft, and credit card fraud committed by individuals residing in Eastern Europe, Central Asia, and elsewhere. The United States Attorney’s Office is committed to pursuing these individuals wherever they might be and extraditing them to the United States for prosecution,” stated U.S. Attorney A. Lee Bentley, III. Dennis Ramos Martinez, Special Agent in Charge of the United States Secret Service Orlando Field Office stated,
“The Secret Service is committed in pursuing cybercrime cases. There is no doubt that our economic vitality and national security depend on cybersecurity. We are committed to these interests and will pursue cyber criminals regardless of where on the globe they may be physically located. Our ongoing partnerships with state, local and international agencies and through a greater understanding of how the criminal world operates and thrives, and what we do together to secure our nation and communities from this threat will have a profound impact on future generations.”
This case was investigated by the United States Secret Service. It was being prosecuted by Assistant United States Attorney Daniel C. Irick.
Toxic Marijuana Operation in Sequoia National Forest Results in 46-Month Prison SentenceRead the Press Release
FRESNO, Calif. — Jose Luis Garcia Villa (Garcia), 22, of Michoacàn, Mexico, has been sentenced to three years and 10 months in prison for his involvement in a toxic marijuana cultivation operation in the Sequoia National Forest, according to U.S. Attorney Benjamin B. Wagner. Garcia was also ordered to pay $3,328 in restitution to the U.S. Forest Service for damage sustained to public land and natural resources as a result of the cultivation operation.
According to court documents, Garcia conspired to cultivate 8,876 marijuana plants near the Greenhorn Creek Trail in the Sequoia National Forest in Kern County. Native oak trees and other vegetation were cut down to make room for the marijuana planted there. The soil was tilled, and fertilizers and pesticides, including a highly toxic and illegal rat poison from Mexico called Fosfuro de Zinc or zinc phosphide, were spread throughout the site. Exposure to zinc phosphide can cause a variety of ailments, including vomiting, burning sensations, abdominal pain, unconsciousness, and lack of muscle control. If ingested, a small quantity can be fatal to humans. Garcia is subject to deportation after he serves his sentence.
This case was the product of an investigation by the U.S. Forest Service, the U.S. Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Environmental Protection Agency Criminal Investigation Division (EPA-CID), and the Kern County Sheriff’s Office. Assistant United States Attorney Karen Escobar prosecuted this case.
St. Martin, Quebec Man Pleads Guilty to Smuggling ChargeRead the Press Release
Contact: Jim Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Pierre
Poulin, 40, of St. Martin, Quebec pled guilty today in U.S. District Court to illegally smuggling his wife, a citizen of Brazil, into the United States.According to court records, on July 17, 2014, Poulin used an ATV to drive his wife to a wooded area near the international border and then drove his vehicle to the Jackman, Maine Port of Entry intending to pick her up several miles south of the Port. Customs and Border Protection
(CBP) Officers at the Port became suspicious when Poulin claimed to be traveling alone, but had in his vehicle, his wife’s passport, female clothing and a purse. His wife was located by Border
Patrol agents later that day near the border.Poulin faces up to 10 years of in prison and a $250,000 fine, or both. He will be sentenced after completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by CBP and the Border Patrol, agencies of the U.S.
Department of Homeland Security.Shelby Township Man Sentenced to 14 YearsIn Prison for Mortgage FraudRead the Press Release
A Shelby Township was sentenced 14 years in prison following his conviction for mortgage fraud, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Paul M. Abbate, Special Agent in Charge of the Detroit Division of the Federal Bureau of Investigation.
U.S. District Judge Stephen J. Murphy, III, also ordered Albert Greer, Sr., to pay restitution to the financial institutions and the individuals he defrauded. The sentence was imposed on July 26, 2014.
Greer was convicted at trial of conspiracy to commit bank fraud and aiding and abetting bank fraud. Evidence at the trial showed that from 2004 through 2007, Greer devised and executed a scheme to commit bank fraud by locating residential properties in the Detroit metropolitan area, then recruiting and paying “straw buyers” to sign for mortgage loans. The straw buyers never intended to repay the loans or live in the homes. Greer often made the mortgage payments on the loans for several months so that the lenders would not immediately realize that the loans had been obtained by fraud. He then defaulted on the loans and allowed the properties to go into foreclosure.Greer’s co-conspirator submitted fraudulent loan applications to various financial institutions on behalf of the straw buyers. The applications were filled with material false representations, and supported by false documents that Greer created, including W-2s, earnings statements and verifications of deposit. Greer attempted to insulate himself from criminal liability by acting through the straw buyers and through shell companies, including Detroit National Mortgage Associates, that established in the names of his family members. Greer also had his family members open bank accounts in their names, which he used to launder the proceeds of his crimes.
Judge Murphy explained that one of the factors he considered in sentencing was that in addition to his fraud, Greer also stole proceeds by submitting bogus invoices for "consulting fees" that he claimed were owed to Detroit National Mortgage Associates. Greer used this scheme to steal $167,844 from a 90-year-old homeowner who sold a home in Detroit in 2005 and to steal from other victims.
“Albert Greer’s conduct was the equivalent of bank robbery, but he used lies and false statements rather than a gun or a mask,” McQuade said. “White collar criminals deserve to be seen as the robbers that they are. This lengthy sentence may deter others from thinking that mortgage fraud is an easy way to make money.”
The investigation of this case was conducted by special agents of the FBI and prosecuted by Assistant U.S. Attorney Cynthia Oberg.Sheffield Village Man Sentence to Five Years in Prison for Child Pornography ConvictionRead the Press Release
William D. Emery, 28, of Sheffield Village, Ohio, was sentenced to five years in prison for , said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation's Cleveland office.
Emery pleaded guilty this year to one count of receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
Emery in 2012 knowingly received and distributed in interstate and foreign commerce, by computer, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Elyria Office of the Federal Bureau of Investigation.
Rowlett, Texas, Man Arrested for Sending Hundreds of Hoax White Powder LettersRead the Press Release
DALLAS — A Rowlett, Texas, man was arrested this morning by special agents with the FBI and inspectors with the U.S. Postal Inspection Service on a criminal complaint charging an offense stemming from hundreds of white powder hoax letters he allegedly mailed from North Texas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Hong Minh Truong, 66, is charged in the complaint with false information and hoaxes. Truong made his initial appearance this afternoon before U.S. Magistrate Judge Irma C. Ramirez, who ordered that he remain in federal custody.
“For almost six years, letters containing white powder - and believed to have been mailed by the same individual - have elicited law enforcement and public safety responses from numerous local, state and federal agencies. While it was determined that the mailings did not contain toxins or poisons, each incident required a field screening of the letter’s contents, which cost taxpayer dollars and diverted first responder resources,” explained Special Agent in Charge Diego Rodriguez of FBI Dallas. “We believe Hong Minh Truong is responsible for the hundreds of letters sent to locations worldwide, including U.S. government offices, aerospace companies, schools, daycares, and recently, hotels in the vicinity of Super Bowl XLVIII. The ongoing investigative work of the FBI and U.S. Postal Inspection Service is to be commended.”
According to the complaint, since December 2008, more than 500 hoax letters were mailed from the North Texas area to cities across the U.S. and to U.S. Embassies abroad. The initial letters, sent out on December 4, 2008, had a “Dallas, Texas” postmark and contained a white-powder substance. Law enforcement has identified more than 15 batches of similar letters sent from the Dallas area from December 2008 to the present. The language used in the letters as well as the method of sending the letters, indicate that one person, Truong, is responsible for sending all of the hoax letters. In all but two of the batches of letters, a white-powder substance was included in the envelope.
On May 7, 2012, the hoax letters mailed from the Dallas area contained a white-powder substance and the following statement:
Al Qaeda back! Special thing for you
What the hell where are you Scooby Doo, Counter Intelligence, CIA, you do not know how to catch the triple dealer spy in your law enforcement. What the hell where are you Scooby Doo, Internal Affairs, FBI, you don't know how to arrest the bad cop in your law enforcement.
You all flaming idiot, ignorant and arrogant, know nothing! How to protect this country! U.S.A
We are Al Qaeda, U.B.L FBI, Al Qaeda, SS Nazi FBI, working in your agency. We claim everything.
These letters were sent to pre-schools and elementary schools across the country as well as to Lockheed Martin in Grand Prairie, Texas. HAZMAT responded to the location of many hoax letter recipients, including Mi Escuelita Preschool Crossover in Dallas.
In June 2013, 28 public schools in Boston received letters that resulted in HAZMAT responses. That investigation resulted in the identification of an IP address in Rowlett associated with Truong.
“Today's joint operation should send a warning to those who seek to terrorize the American public through powder letters, real or hoax,” said Fort Worth Division Inspector in Charge R.L. Faulkerson. “Postal Inspectors and FBI agents have worked tirelessly during this six-year investigation to locate the person responsible for sending hundreds of letters containing hoax white powders. The U.S. Postal Inspection Service remains committed to our mission of protecting the nation’s postal system and ensuring our customers’ trust that mail they receive will be free from threats or dangerous substances.”
“Mr. Truong’s alleged criminal actions caused emergency responders and hazardous response teams immense unnecessary labor and expense, diverted personnel from actual emergencies and caused untold emotional distress to those who received the letters,” said U.S. Attorney Saldaña. “I commend the excellent investigative work of the FBI and the U.S. Postal Inspection Service that led to today’s arrest.”
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The government has 30 days to present the matter to a federal grand jury for indictment. The maximum statutory penalty for the offense as charged is five years in federal prison and a $250,000 fine.
Assistant U.S. Attorney Errin Martin is in charge of the prosecution.
Rochester Man Sentenced on Bank Robbery ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Robert Stevenson, 59, of Rochester, N.Y., who was convicted of bank robbery, was sentenced to 132 months in prison by U.S. District Court Judge Richard J. Arcara.
The defendant was also ordered to pay $16,425 in restitution.According to Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, on June 11, 2012, the defendant entered the First Niagara Bank at 2853 Delaware Avenue, in Kenmore, N.Y., approached a teller station and handed the teller a note which stated, “100.00 and 50.00.” Stevenson then tapped on his waistband and made a noise and gesture suggesting that he had a weapon under his shirt.
In addition to the First Niagara Bank robbery, the defendant also committed the following robberies:
• April 25, 2012, Citizens Bank, 2250 Hudson Avenue, Irondequoit, N.Y.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, the Irondequoit Police Department, under the direction of Chief Richard Tantalo, the Syracuse Police Department, under the direction of Chief Frank Fowler, the Utica Police Department, under the direction of Chief Mark Williams, the New Hartford Police Department, under the direction of Chief Michael Inserra, the Kenmore Police Department, under the direction of Chief Peter Breitnauer, the Town of Ellicott Police Department, under the direction of Chief William Ohnmeiss, Jr., and the Albany Office of the Federal bureau of Investigation, under the direction of Special Agent in Charge Andrew Vale.
• May 11, 2012, HSBC Bank, 333 West Washington, Syracuse, N.Y.
• August 20, 2012, Adirondack Bank, 185 Genesee Street, Utica, N.Y.
• October 3, 2012, Bank of America, 50 Genesee Street, New Hartford, N.Y.
• November 5, 2012, Northwest Savings Bank, 210 W. Main Street, Falconer, N.Y.Physician Assistant and Certified Nursing Assistant Convicted in $200 Million Medicare Fraud SchemeRead the Press Release
A federal jury in Miami today convicted a physician assistant and a certified nursing assistant, both South Florida residents, for their participation in a Medicare fraud scheme involving approximately $200 million in fraudulent billings by American Therapeutic Corporation (ATC), a mental health care company headquartered in Miami.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Acting Special Agent in Charge Reginald France of the Health and Human Services Office of Inspector General (HHS-OIG) region including all of Florida made the announcement.
Roger Bergman, 65, a physician assistant licensed in Florida, and Rodolfo Santaya, 55, a certified nursing assistant licensed in Florida, were each charged in an indictment on Jan. 28, 2014. Today, Bergman was found guilty of conspiracy to commit health care fraud and wire fraud and conspiracy to make false statements relating to health care matters. Santaya was found guilty of conspiracy to commit health care fraud and wire fraud, conspiracy to pay and receive bribes and kickbacks, and two counts of receiving bribes and kickbacks in connection with a federal health care benefit program.
ATC, Medlink Professional Management Group Inc. – a management company associated with ATC – and multiple individuals, including ATC’s owners, have all previously pleaded guilty or have been convicted at trial in connection with the fraud scheme. ATC operated purported partial hospitalization programs (PHPs) in seven locations throughout Orlando and south Florida. A PHP is a form of intensive treatment for severe mental illness.
According to evidence presented at trial, Bergman, Santaya and their co-conspirators caused the submission of fraudulent claims to Medicare through ATC seeking reimbursement for mental health services that were not provided or were provided to patients who were not eligible to receive the services. Bergman, who worked at ATC’s Miami and Homestead, Florida, offices, created, falsified and signed fraudulent medical documentation to make it appear to Medicare that ATC’s patients qualified for, and received, PHP services, even though they did not. Santaya received hundreds of thousands of dollars in illegal kickback payments in exchange for delivering ineligible Medicare beneficiaries to ATC’s Homestead office.
Throughout the course of the conspiracy, ATC and its employees paid tens of millions of dollars in kickbacks in exchange for the names and identification numbers of Medicare beneficiaries so that ATC could fraudulently bill Medicare for PHP services that it never provided or that it purportedly provided to beneficiaries who were not eligible to receive PHP treatment.
The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case is being prosecuted by Assistant Chief Robert A. Zink and Trial Attorneys Nicholas E. Surmacz and Kelly Graves of the Criminal Division.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Ohio Woman Sentenced in Huntington for Embezzling Public Housing FundsRead the Press Release
Huntington, W.Va. – United States Attorney Booth Goodwin announced today that Connie Lynn Whitley, 51, of Proctorville, Ohio, was sentenced to 18 months imprisonment by Judge Robert C. Chambers in Huntington, West Virginia. Whitley worked for Uptowner Inns as the manager for their United States Department of Housing and Urban Development (HUD) apartments and checking accounts. The money in these accounts was to be used by the Uptowner Inns to pay a portion of the rent for its HUD apartments for qualifying tenants. Over the course of four years, Whitley stole more than $150,000 in federal funds from the HUD accounts and deposited the money into her personal checking account. She concealed the fraud by entering false information into the check ledger indicating that the money was spent on maintenance and other items for the apartments. Whitley previously pleaded guilty to embezzling money from an organization receiving federal funds in April of 2014.
The investigation was conducted by the West Virginia State Police, the United States Department for Housing and Urban Development, and with assistance from the Federal Bureau of Investigation.
Ocala Man Convicted for Attempting to Purchase More Than 5 Kilograms of CocaineRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Anthony Vikey Omar Price (29, Ocala) guilty of aiding and abetting an attempt to possess with intent to distribute 5 kilograms or more of cocaine. Price faces a mandatory minimum penalty of 10 years, up to life in federal prison. His sentencing hearing is scheduled for October 23, 2014. The jury verdict was returned on July 23, 2014. Price and his co-defendant Delvon Williams were arrested on a criminal complaint on March 19, 2014. Both were indicted on March 26, 2014. Williams pleaded guilty for his role in this case on May 22, 2014.
According to evidence presented at trial, Williams negotiated a 10 kilogram cocaine purchase with another individual on March 19, 2014. Williams exchanged text messages and met with Price prior to meeting with the other individual. The individual made arrangements to introduce Williams to a source of cocaine supply. The source was a DEA agent working in an undercover capacity.
Williams and Price agreed that Price would pay for 3 kilograms of cocaine at $34,000 per kilogram, and that Williams would provide another 2 kilograms of cocaine to Price on consignment. Williams, in turn, negotiated with the individual, that Williams would pay for 4 kilograms of cocaine and receive 6 kilograms of cocaine on consignment.
In the late afternoon hours on March 19, 2014, Price followed Williams and the individual to a warehouse in Ocala. At the warehouse, Price remained in his vehicle, while Williams met with the cooperating individual and the undercover DEA agent. Williams provided two bags of money to the undercover agent. One bag contained $33,000 of the buy money. Another contained $101,985 of the buy money. When agents arrested Price, Price made conflicting statements concerning his knowledge of the drug transaction. At first, Price denied knowledge of the drug deal. Later, Price stated that he knew Williams was a cocaine dealer, but that he merely provided Williams $2,000 as a loan.
This case was investigated by the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney A. Tysen Duva.
New Town Man Sentenced for AssaultRead the Press Release
BISMARCK - U. S. Attorney Timothy Q. Purdon announced that on July 28, 2014, Christopher McMillan, 29, New Town, N.D., was sentenced by U. S. District Judge Daniel L. Hovland to serve two years and six months in prison on the charge of assault of a dating partner resulting in substantial bodily injury. McMillan pleaded guilty to the charge on April 21, 2014.
On Dec. 9, 2013, McMillan assaulted a female, whom he was dating, resulting in substantial bodily injury to the face and neck of the victim.
Judge Hovland also ordered McMillan to complete two years of supervised release and to pay a $100 special assessment to the Crime Victim’s Fund.
The charge in this case, assault of a dating partner resulting in substantial bodily injury in Indian Country, was created by Congress as part of the Violence Against Women Reauthorization Act of 2013.
The case was investigated by Bureau of Indian Affairs – Fort Berthold Agency and Three Affiliated Tribes Police Department.
This case was prosecuted by Assistant U. S. Attorney Rick Volk.
Mexican National Pleads Guilty to Federal Methamphetamine and Cocaine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Miguel Angel Tinajero-Martinez, 24, a Mexican national illegally in the United States, pleaded guilty on July 24, 2014, to methamphetamine trafficking charges in federal court in Las Cruces, N.M.
Tinajero-Martinez was indicted on Feb. 19, 2014, under the moniker “4 Runner” and was charged with conspiracy and distribution of methamphetamine. He was arrested on Feb. 27, 2014, and has been in federal custody since that time.
On July 24, 2014, Tinajero-Martinez entered a guilty plea to a four-count felony information charging him with (1) conspiracy; (2) distribution of methamphetamine in Doña Ana County, N.M., on Jan. 27, 2014; (3) distribution of methamphetamine in Doña Ana County, N.M., on Feb. 27, 2014; and (4) possession of cocaine with intent to distribute in El Paso County, Texas, on Feb. 27, 2014.
In entering his guilty plea, Tinajero-Martinez admitted that from Dec. 2, 2013 to Feb. 27, 2014, he conspired with others to distribute an aggregate of three kilograms of methamphetamine in Doña Ana County. More specifically, Tinajero-Martinez admitted distributing one kilogram of methamphetamine to an undercover agent on Jan. 27, 2014 and distributing two kilograms of methamphetamine to undercover agents on Feb. 27, 2014. The drug transactions were negotiated by Tinajero-Martinez’s co-conspirators and Tinajero-Martinez delivered the methamphetamine to the agents.
During his plea hearing, Tinajero-Martinez also admitted possessing seven kilograms of cocaine at his home in Horizon, Texas. Tinajero-Martinez waived venue to permit him to enter his guilty plea in federal court in New Mexico.
At sentencing, Tinajero-Martinez faces a prison sentence of not less than ten years and nor more than life. He will be deported after he completes his prison sentence.
This case was investigated by the Las Cruces office of the FBI and Las Cruces/Doña Ana County Metro Narcotics Agency, and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Man Sentenced to 180 Months in Federal Prison for His Role in Drug ConspiracyRead the Press Release
BOISE – Hernan Gomez-Gutierrez, 31, a Mexican National, was sentenced today to 180 months in prison for conspiring to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Gomez-Gutierrez to serve five years of supervised release. Gomez-Gutierrez pleaded guilty to the charge on January 14, 2014.
Gomez-Gutierrez was one of eleven individuals charged with conspiracy to distribute methamphetamine. According to information presented in court, Gomez-Gutierrez was the leader of the organization and the source of the methamphetamine. Gomez-Gutierrez provided the methamphetamine to other co-defendants who distributed the drugs. Gomez-Gutierrez was also present when co-defendant Jeramie Mahler shot another person on March 25, 2013, in furtherance of the drug conspiracy, because of a dispute with that person about the quality of the methamphetamine. The shooting occurred alongside a road in south Ada County near Amity and Linder roads. Gomez-Gutierrez and Mahler fled the scene leaving the injured man behind. Approximately a week later on April 2, 2013, a Canyon County Sheriff’s deputy stopped a vehicle that Mahler was driving. The deputies arrested Mahler and searched the vehicle, which was registered to Gomez-Gutierrez. Deputies found approximately one-quarter pound of methamphetamine and two handguns and in the vehicle, including the handgun used in the shooting. Gomez-Gutierrez was also arrested after he arrived at the location of the traffic stop driving a different vehicle. Deputies searched the vehicle Gomez-Gutierrez was driving and located a .45 semi-automatic pistol.
Gomez-Gutierrez and the other ten defendants were indicted on July 9, 2013, in a case including charges of conspiracy to distribute methamphetamine, distribution of methamphetamine, distribution of 2 cocaine, and unlawful possession of firearms. All eleven defendants pleaded guilty. Co-defendants Wendy Harrison and Bobbi Woolsey were both sentenced to 84 months in prison; Nearia Pinnell was sentenced to 33 months in prison; Daniel Vaughan was sentenced to 80 months in prison; Darrell Zirschky was sentenced to 168 months in prison; Michelle Ritch was sentenced to 120 months in prison; Carlos Tovar was sentenced to 87 months in prison; Juan Mojica-Barragan was sentenced to 57 months in prison; and Jeramie Mahler was sentenced to 247 months in prison. Scott Hernandez has not been sentenced yet.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force, which is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. Other agencies that contributed to this investigation include the Drug Enforcement Administration, Nampa Police Department, Caldwell Police Department, Canyon County Sheriff’s Office, and Ada County Sheriff’s Office. During the investigation, law enforcement agents seized twelve firearms, including a stolen firearm, and an illegal fully-automatic machine gun.
The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Local In-Home Healthcare Provider Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – TINA KUEHL was sentenced to 51 months in prison on multiple healthcare fraud charges and separate unrelated bank fraud charges and ordered to pay $200,000 restitution. Her company, Better Way Home Care, was sentenced to three years of probation and also ordered to pay $200,000 restitution. Kuehl and Better Way represented on billing work sheets and claim forms that patients had received therapy services when they knew that the patients had not received the therapy. Kuehl and Better Way caused the submission of hundreds of reimbursement claims to Medicare for services which they knew had not been provided.
According to court documents regarding the bank fraud charges, in December 2010, Kuehl’s mother obtained a $305,000 property loan from the Community Bank of Owensville, MO, a branch of the Maries County Bank. Both Kuehl and her mother are listed on the deed of trust for the property. On many occasions, they did not make timely payments on the loan, and in July 2013, Maries Bank foreclosed on the property. After the foreclosure, Kuehl devised a scheme to defraud Maries Bank by submitting fraudulent checks as proof that she had made loan payments to the bank. On six occasions, she changed the payee on copies of unrelated cancelled checks so that it would appear that she had made loan payments to Community Bank of Owensville. She continued the fraud by claiming to have made cash payments to a bank employee on two occasions. The bank employee was on sick leave on the day Kuehl claimed she made the first $4,000 cash payment to the employee at the bank. Kuehl claimed that she made a second cash payment of $6,900 to a bank employee at a truck stop. Finally, Kuehl retained attorneys to represent her after the foreclosure, and falsely told them she had made payments by checks and cash, which the bank had not credited to her loan account.According to court documents regarding the healthcare fraud charges, Better Way was a home health care agency located in Ellisville, Missouri. Tina Kuehl was the owner, president, and administrator of Better Way and was responsible for the day-to-day operations. Medicare pays home health agencies for 60-day episodes of care. Medicare makes two payments to the home health care agencies, the first before the service is provided based on the patient’s anticipated need for services and a second payment at the end of the 60-day episode of care based on the actual number of services provided.
Kuehl has no medical or health care education, training or experience, which would qualify her to assess or evaluate patients or determine their care needs. Prior to opening Better Way, she worked in the cosmetology field. Better Way hired nurses and contracted with therapists to assess and evaluate patients and to determine the patients’ needs for therapy services. Better Way staff recorded this information on the Outcome and Assessment Information Set form (OASIS).To increase the reimbursement that Better Way would receive, Kuehl directed Better Way nurses and other employees to make false statements on the OASIS forms and the reimbursement claim forms. At Kuehl’s direction, the staff increased the number of therapy visits, although Kuehl knew the patients did not need and had not received the therapy; falsified the diagnosis codes; and exaggerated the patients’ conditions and the reasons the patients were receiving home health care services from Better Way. When some employees refused to increase the number of therapy visits, Kuehl personally increased the number of visits. In some instances the patient had received no therapy at all.
Kuehl, Ballwin, MO, pled guilty May 1st to one felony count of bank fraud, one felony count of healthcare fraud, two counts of making false statements relating to healthcare and one count of making false statements to federal agents. She appeared today for sentencing before United States District Judge Henry Autrey.This case was investigated by the Office of the Inspector General of the U.S. Department of Health and Human Services and the FBI. Assistant United States Attorney Dorothy McMurtry handled the case for the U.S. Attorney's Office.
Lloyds Banking Group Admits Wrongdoing in LIBOR Investigation, Agrees to Pay $86 Million Criminal PenaltyRead the Press Release
Lloyds Banking Group plc has entered into an agreement with the Department of Justice to pay an $86 million penalty for manipulation of submissions for the London InterBank Offered Rate (LIBOR), a leading global benchmark interest rate.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Deputy Assistant Attorney General Brent Snyder of the Antitrust Division, and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.
A criminal information will be filed today in U.S. District Court for the District of Connecticut that charges Lloyds as part of a deferred prosecution agreement (DPA). The information charges Lloyds with wire fraud for its role in manipulating LIBOR. In addition to the $86 million penalty, the DPA requires the bank to admit and accept responsibility for its misconduct as described in an extensive statement of facts. Lloyds has agreed to continue cooperating with the Justice Department in its ongoing investigation of the manipulation of benchmark interest rates by other financial institutions and individuals.
“For more than three years, traders at Lloyds manipulated the bank’s LIBOR submissions for three currencies to benefit the trading positions of themselves and their friends, to the detriment of the parties on the other side of the trades,” said Assistant Attorney General Caldwell. “Because investors and consumers rely on LIBOR’s integrity, rate-rigging fundamentally undermines confidence in financial markets. Lloyds is the fifth major financial institution that has admitted LIBOR manipulation and paid a criminal penalty, and nine individuals have been criminally charged by the Justice Department. Our active investigation continues, as we work to restore trust in the markets.”
“Lloyds manipulated benchmark rates, allowing its traders to increase their profits unfairly and fraudulently,” said Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division. “Lloyds’s conduct undermined financial markets domestically and abroad, and today’s charges send a clear message that we will continue to bring those responsible to justice."
“Manipulating financial trading markets to create an unfair advantage is against the law,” said Assistant Director in Charge Parlave. “Today’s agreement further underscores the FBI’s ability to investigate complex international financial crimes and bring the perpetrators to justice. The Washington Field Office has committed significant time and resources including the expertise of Special Agents, forensic accountants and analysts to investigate this case along with our Department of Justice colleagues. Their efforts send a clear message to anyone contemplating financial crimes: think twice or you will face the consequences.”
Together with approximately $283 million in criminal and regulatory penalties imposed by other agencies in actions arising out of the same conduct – $105 million by the Commodity Futures Trading Commission (CFTC), and approximately $178 million by the U.K. Financial Conduct Authority (FCA) – the Justice Department’s $86 million criminal penalty brings the total amount to be paid by Lloyds to almost $370 million.
According to signed documents, LIBOR is an average interest rate, calculated based upon submissions from leading banks around the world and reflecting the rates those banks believe they would be charged if borrowing from other banks. LIBOR serves as the primary benchmark for short-term interest rates globally and is used as a reference rate for many interest rate contracts, mortgages, credit cards, student loans and other consumer lending products. The Bank of International Settlements estimated that as of the second half of 2009, outstanding interest rate contracts were valued at approximately $450 trillion.
At the time relevant to the conduct in the criminal information, LIBOR was published by the British Bankers’ Association (BBA), a trade association based in London. LIBOR was calculated for 10 currencies at 15 borrowing periods, known as maturities, ranging from overnight to one year. The LIBOR for a given currency at a specific maturity was the result of a calculation based upon submissions from a panel of banks for that currency (the Contributor Panel) selected by the BBA. From at least 2006 through the present, Lloyds (through its subsidiaries) has been a member of the Contributor Panel for a number of currencies, including United States Dollar LIBOR, Pound Sterling LIBOR, and Yen LIBOR.
According to the statement of facts accompanying the agreement, between at least as early as 2006 and at least as late as July 2009, Lloyds’s LIBOR submitters for Dollar LIBOR, Yen LIBOR, and Pound Sterling LIBOR submitted LIBOR contributions intended to benefit their own trading positions or the trading positions of others , rather than rates that complied with the definition of LIBOR. When Lloyds LIBOR submitters contributed LIBOR submissions to benefit trading positions, the manipulation of the submissions affected the fixed rates on occasion.
According to signed documents, on May 19, 2009, a money markets trader who was a former Dollar LIBOR submitter at a subsidiary of Lloyds wrote to the then-current Dollar LIBOR submitter: “have 5 yard [billion] 3 month liability rolls today so would be advantageous to have lower 3month libor setting if doesn’t conflict with any of your fix’s.” Later that day, the Dollar LIBOR submitter told the money markets trader in a phone call: “obviously we got the Libors down for you.”
In another example, on March 6, 2009, a money markets trader who was a former Pound Sterling LIBOR submitter for a subsidiary of Lloyds told the then-current Pound Sterling LIBOR submitter: “Um, I’m paying on 12 yards [billions] of 1s today, . . . so if there is any way of making 1s relatively low it would just be helpful for us all.” That day, the Pound Sterling LIBOR submitter contributed a rate that was ten basis points lower than the previous day’s submission.
Also according to the statement of facts, a Yen LIBOR submitter and a former submitter at Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank) who traded money-markets and derivatives products had an agreement to submit Yen LIBOR contributions that benefitted their respective trading positions, rather than submissions that complied with the definition of LIBOR.
For example, on July 28, 2006, the Rabobank submitter wrote to the Yen LIBOR submitter: “morning skipper.....will be setting an obscenely high 1m again today...poss 38 just fyi.” The Yen LIBOR submitter responded: “(K)...oh dear..my poor customers....hehehe!! manual input libors again today then!!!!” Both banks’ submissions on July 28 moved up one basis point, from 0.37 to 0.38.
This ongoing investigation is being conducted by special agents, forensic accountants, and intelligence analysts of the FBI’s Washington Field Office. The prosecution of Lloyds is being handled by Trial Attorney Patrick Pericak of the Criminal Division’s Fraud Section and Trial Attorney Michael T. Koenig of the Antitrust Division. Assistant U.S. Attorneys Chris Mattei and Michael McGarry of the U.S. Attorney’s Office for the District of Connecticut, along with the Criminal Division’s Office of International Affairs, have provided valuable assistance in this matter.
The investigation leading to these cases has required, and has greatly benefited from, a diligent and wide-ranging cooperative effort among various enforcement agencies both in the United States and abroad. The Justice Department acknowledges and expresses its deep appreciation for this assistance. In particular, the CFTC’s Division of Enforcement referred this matter to the department and, along with the FCA, has played a major role in the investigation. Various agencies and enforcement authorities from other nations are also participating in different aspects of the broader investigation relating to LIBOR and other benchmark rates, and the department is grateful for their cooperation and assistance. In particular, the Securities and Exchange Commission has played a significant role in the LIBOR investigation, and the department expresses its appreciation to the United Kingdom’s Serious Fraud Office for its assistance and ongoing cooperation.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.govLittle Eagle Man Acquitted of Assault with A Dangerous Weapon and Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Little Eagle, South Dakota, man was acquitted on July 23, 2014, on one count of Assault with a Dangerous Weapon and one count of Domestic Assault by a Habitual Offender as a result of a federal jury trial in Pierre, South Dakota.
Leon White was indicted by a federal grand jury on February 12, 2014.
The charges stemmed from events that were alleged to have occurred in December 2013.
The investigation was conducted by the Bureau of Indian Affairs, Standing Rock Agency. The U.S. Attorney's Office prosecuted the case.
Leader of Colombian Drug Trafficking Organization Sentenced to 18 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore sentenced Vinston Boxton-Moises (49, San Andres Island, Colombia, South America) to 18 years in federal prison for conspiring with others to distribute five kilograms or more of cocaine, knowing and intending that the cocaine would be unlawfully imported into the United States. Boxton was arrested on San Andres Island, Colombia in August 2013. He was subsequently extradited to the United States for prosecution. Boxton pleaded guilty on May 6, 2014.
According to court documents, between 2010 and 2013 Boxton was a knowing and willing participant in an ongoing plan to smuggle cocaine by sea. The cocaine was ultimately destined for unlawful importation into the United States. Boxton’s roles in the conspiracy included recruiting and paying mariners and mechanics, contracting for the use of smuggling and lookout/logistics vessels, and dispatching cocaine-laden go-fast vessels (GFVs).
Boxton is accountable for the GFV TAUPLY, interdicted by the United States in the Caribbean Sea on May 31, 2012, on the high seas and in international waters, approximately 85 nautical miles southeast of Nicaragua. The TAUPLY interdiction resulted in the seizure of approximately 1,000 kilograms of cocaine. Boxton arranged for the recruitment and payment of the mariners who ultimately operated TAUPLY and attempted to smuggle the cocaine. The Government of Colombia consented to the enforcement of United States law by the United States over the TAUPLY, its illicit cargo (cocaine), and crew. The five mariners who smuggled the cocaine on board the TAUPLY were successfully prosecuted in the United States for violations of the Maritime Drug Law Enforcement Act.
This case was investigated by the Panama Express Strike Force, a standing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation, comprised of agents and analysts from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Drug Enforcement Administration, the Federal Bureau of Investigation, the United States Coast Guard Investigative Service, the Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force South.
The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case is being prosecuted by Assistant United States Attorney Christopher F. Murray.
Kern County Resident Pleads Guilty in Fraudulent Tax Refund SchemeRead the Press Release
FRESNO, Calif. — Federico Garcia Garcia, 45, of Arvin, pleaded guilty today to two counts of filing false claims with the U.S. Internal Revenue Service in connection with a scheme to obtain tax refunds, United States Attorney Benjamin B. Wagner announced.
According to his plea agreement, between October 2007 and December 2008, Garcia caused 147 false federal income tax returns to be submitted to the IRS in the names of third parties, in a scheme to obtain tax refund checks. The tax returns were submitted to the IRS with fabricated Form W-2s containing false wage and withholding information. Due to the scheme, approximately $308,317 was fraudulently claimed in federal tax refunds, and the IRS paid out approximately $79,932.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Kirk Sherriff is prosecuting the case.
Garcia is scheduled to be sentenced on November 24, 2014, by United States District Judge Anthony W. Ishii. Garcia faces a maximum statutory penalty of five years in prison and a $250,000 fine on each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Kalamazoo Couple Sentenced to Prison for Tax CrimesRead the Press Release
GRAND RAPIDS, MICHIGAN – Helen C. Hale and her husband, David W. Leiter, both residents of Kalamazoo County, Michigan, were sentenced for tax crimes today by U.S. District Court Judge Judge Robert J. Jonker. U.S. Attorney Patrick Miles is joined in this announcement by Jarod Koopman, Special Agent in Charge- IRS Criminal Investigation.
Helen Hale was sentenced to 12 months and one day in prison followed by two years of supervised release for tax evasion. She was also ordered to pay $277,391.31 in restitution to the Internal Revenue Service. David Leiter was sentenced to three months in prison followed by one year of supervised release for failure to file a tax return. He was ordered to pay $105,689 in restitution to the Internal Revenue Service.
According to court records, Hale was self-employed as the owner of Kiddie Komfort Preschool and Daycare in Kalamazoo, Michigan. Hale failed to timely file Federal income tax returns for the years 2006 and 2008- 2012, despite having gross business receipts of $2,693,478. Hale did file a Federal income tax return for 2007 but failed to report approximately $380,165 in gross receipts that she received from her daycare business. In December 2013, Hale pled guilty to one count of income tax evasion.
According to court records, Leiter was self-employed as the owner of David Michael Studios, a hair salon in Kalamazoo, Michigan. Leiter failed to file Federal income tax returns for tax years 2009 through 2012, despite having gross business receipts of approximately $200,736. In December 2013, Leiter pled guilty to one count of failing to file an income tax return.
“Tax evasion is not a victimless crime,” said Special Agent in Charge (SAC) Jarod Koopman, IRS Criminal Investigation. “Individuals who corruptly violate the law to further their business interests and intentionally evade paying their fair share of taxes undermine public confidence in our tax system and unfairly disadvantage businesses that play by the rules. As Hale and Leiter have discovered, operating outside the law and failing to pay taxes has severe consequences.”
The IRS investigated the case. Assistant U.S. Attorney Rene Shekmer prosecuted it.
END
Jonathan Thornton Sentenced to 121 Months for Distribution of Crack Cocaine and Possession of A Firearm by A Convicted FelonRead the Press Release
GREENEVILLE, Tenn. – On July 28, 2014, Jonathan Thornton, 32, of Dandridge, Tenn., was sentenced to serve 121 months in prison by the Honorable J. Ronnie Greer, U.S. District Judge. Upon his release from prison, Thornton will be subject to supervised release under the supervision of the U.S. Probation Office for three years. There is no parole in the federal system.
Thornton pleaded guilty in February 2014 to distributing a quantity of crack cocaine and to being a convicted felon in possession of a firearm. During an undercover investigation, Thornton, along with co-defendant Roger France, sold firearms which had been stolen earlier that day in a burglary in Cosby, Tenn. At the time that he sold the stolen firearms, Thornton was a convicted felon. On another occasion, he also traded a firearm for prescription drugs and distributed crack cocaine.
Law enforcement agencies participating in the joint investigation included the Fourth Judicial District Drug Task Force, Tennessee Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Cocke County Sheriff’s Department. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
Iraq Extradites Fugitive Defense Contractor to U.S. to Face Fraud ChargesRead the Press Release
A Las Vegas-based former Department of Defense contractor has been extradited from Iraq to the United States to face fraud and conspiracy charges for attempting to bribe U.S. officials in order to secure government contracts for his companies. Metin Atilan, 54, is the first person extradited from Iraq to the United States pursuant to the U.S.-Iraq extradition treaty signed on June 7, 1934 and entered into force in 1936.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Carter M. Stewart of the Southern District of Ohio, Special Agent in Charge Kevin Cornelius of the FBI’s Cincinnati Office and Resident Agent in Charge Bret Flinn of the Defense Criminal Investigation Service (DCIS) made the announcement.
“This historic extradition from Iraq to the United States is an example of our cooperation with law enforcement worldwide to bring fugitives to justice,” said Assistant Attorney General Caldwell. “Atilan’s return to the United States, after more than six years on the run, sends a clear message to fugitives: no matter where in the world you try to hide, we will find you, and we will prosecute you.”
“ This case is a tremendous example of a successfully organized and cooperative law enforcement effort put forth by the FBI, DCIS, Interpol and the Iraqi government,” said Special Agent in Charge Cornelius. “I commend the work of the FBI’s Legal Attaché Office and the U.S. Embassy Country Team in Iraq. They have garnered a superior level of law enforcement cooperation between the FBI and Iraqi officials. Without their support, this extradition would not have been possible.”
Atilan, a dual U.S. and Turkish citizen, is scheduled to appear today before U.S. Magistrate Judge Michael R. Merz of the Southern District of Ohio.
Atilan was charged by indictment on June 10, 2008, with conspiracy to engage in contract fraud, conspiracy to engage in wire fraud, and wire fraud. According to court documents, Atilan is p resident and chief executive officer of PMA Services Ltd. of Las Vegas and Kayteks Ltd. of Adna, Turkey. In 2006 through 2008, Atilan offered bribes and kickbacks in order to secure contracts for businesses he owned in connection with services and construction associated with U.S. military operations in Iraq. Some of the Defense Department contracting officials who Atilan is accused of trying to bribe were stationed in Dayton at the time.
Atilan was first arrested in Las Vegas on May 23, 2008. Atilan was placed on electronic monitoring pending his formal hearing before a federal judge in Dayton, Ohio. On June 15, 2008, Atilan allegedly violated the terms of his pretrial release by cutting off his electronic bracelet and fleeing the country. The government sought his extradition, and Atilan arrived in Dayton, Ohio on July 27, 2014.
An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI and DCIS. The case is being prosecuted by Assistant U.S. Attorney Dwight Keller of the Southern District of Ohio with assistance from Trial Attorney Dan E. Stigall of the Criminal Division’s Office of International Affairs and Department of Justice Attaché Ellen Endrizzi. The Criminal Division’s Office of International Affairs also provided assistance.Iraq Extradites Fugitive Defense Contractor to U.S. to Face Fraud ChargesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
WASHINGTON – A Las Vegas-based former Department of Defense contractor has been extradited from Iraq to the United States to face fraud and conspiracy charges for attempting to bribe U.S. officials in order to secure government contracts for his companies. Metin Atilan, 54, is the first person extradited from Iraq to the United States pursuant to the U.S.-Iraq extradition treaty of 1936.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Carter M. Stewart of the Southern District of Ohio, Special Agent in Charge Kevin Cornelius of the FBI’s Cincinnati Office and Resident Agent in Charge Bret Flinn of the Defense Criminal Investigation Service (DCIS) made the announcement.
“This historic extradition from Iraq to the United States is an example of our cooperation with law enforcement worldwide to bring fugitives to justice,” said Assistant Attorney General Caldwell. “Atilan’s return to the United States, after more than six years on the run, sends a clear message to fugitives: no matter where in the world you try to hide, we will find you, and we will prosecute you.”
“This case is a tremendous example of a successfully organized and cooperative law enforcement effort put forth by the FBI, DCIS, Interpol and the Iraqi government,” said Special Agent in Charge Cornelius. “I commend the work of the FBI’s Legal Attaché Office and the U.S. Embassy Country Team in Iraq. They have garnered a superior level of law enforcement cooperation between the FBI and Iraqi officials. Without their support, this extradition would not have been possible.”
Atilan, a dual U.S. and Turkish citizen, is scheduled to appear today before U.S. Magistrate Judge Michael R. Merz of the Southern District of Ohio.
Atilan was charged by indictment on June 10, 2008, with conspiracy to engage in contract fraud, conspiracy to engage in wire fraud, and wire fraud. According to court documents, Atilan is President and Chief Executive Officer of PMA Services, Ltd. of Las Vegas and Kayteks Ltd. of Adna, Turkey. In 2006 through 2008, Atilan offered bribes and kickbacks in order to secure contracts for businesses he owned in connection with services and construction associated with U.S. military operations in Iraq. Some of the Defense Department contracting officials who Atilan is accused of trying to bribe were stationed in Dayton at the time.
Atilan was first arrested in Las Vegas on May 23, 2008. Atilan was placed on electronic monitoring pending his formal hearing before a federal judge in Dayton, Ohio. On June 15, 2008, Atilan allegedly violated the terms of his pretrial release by cutting off his electronic bracelet and fleeing the country. The government sought his extradition, and Atilan arrived in Dayton, Ohio on July 27, 2014.
An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.This case was investigated by the FBI and DCIS. The case is being prosecuted by Assistant U.S. Attorney Dwight Keller of the Southern District of Ohio with assistance from Trial Attorney Dan E. Stigall of the Criminal Division’s Office of International Affairs and Department of Justice Attaché Ellen Endrizzi. The Criminal Division’s Office of International Affairs also provided assistance.
# # #Howard County Bloods Gang Member Exiled to over 16 Years in Prison in Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Kenneth Ragan-Armstrong, a/k/a "Keezy," age 23, of Savage and Laurel, Maryland, today to 193 months in prison followed by three years of supervised release for conspiring to participate in a racketeering conspiracy and using a gun during a crime of violence.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Howard County Police Chief Gary Gardner; and Howard County State’s Attorney Dario Broccolino.
“Howard County police and prosecutors are working closely with federal agencies to identify and disrupt gangs responsible for violence in the county,” said U.S. Attorney Rod J. Rosenstein.
According to his plea agreement, Ragan-Armstrong was a member of the Bloods, a national criminal street gang. Beginning in at least 2010, Ragan-Armstrong founded “Cut Throat Committee,” or “CTC,” a gang whose members are associated with and/or members of the Bloods gang. CTC operated in and around Howard County, Maryland, and many of the members attended high school together.
Among his criminal activities as a gang member, Ragan-Armstrong admitted that he committed at least two armed robberies of individuals in which drugs, cash and/or other items were stolen. During one of the robberies, a home invasion in Laurel, Maryland, he pistol whipped the victim on the head resulting in serious bodily injury. Ragan-Armstrong regularly sold drugs, primarily marijuana.
On May 8, 2013, Ragan-Armstrong was arrested along with 20 others connected with the Bloods. Law enforcement seized a mask, digital scale, 2 ½ ounces of marijuana packaged for distribution and $371 from an apartment used by Ragan-Armstrong.
During a two day sentencing hearing on July 25 and July 28, 2014, evidence was presented relating to Ragan-Armstrong’s use and sale of weapons used by him and other CTC gang members. The guns were used for protection and to rob individuals who also sold drugs – known by gang members as “licks.” Witnesses also testified about Ragan-Armstrong’s participation in a sexual assault that occurred in December 2010 at an apartment in Catonsville, Maryland known by CTC as the “40 House.” The Court credited the evidence of the sexual assault when it imposed sentence.
Judge Russell sentenced David Jerome Robertson, age 23, of Columbia, Maryland on July 23, 2014 to 81 months in prison for his participation in the conspiracy. In addition to Ragan-Armstrong and Robertson, nine other defendants have pleaded guilty to the racketeering conspiracy, as the result of a two year long investigation by the ATF and Howard County Police Department into Bloods/CTC gang activity in Howard County. Three other individuals pled guilty to narcotics trafficking and five defendants are scheduled for trial on October 14, 2014.
Mr. Rosenstein commended the ATF, Howard County Police Department and Howard County State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Sandra Wilkinson and Rachel M. Yasser, who prosecuted the case.
Hobbs Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – On July 24, 2014, Carlos Luis Bujanda, 46, of Hobbs, N.M., entered a guilty plea in federal court in Las Cruces, N.M., to a methamphetamine trafficking charge.
Bujanda was arrested on Dec. 12, 2013, on a criminal complaint alleging that he possessed methamphetamine with intent to distribute in Lea County, N.M., on Nov. 14, 2013. He subsequently was indicted in March 2014, on that same charge.
Court filings reflect that Bujanda was arrested by officers of the Lea County Drug Task Force on Nov. 14, 2013, when he attempted to deliver an ounce of methamphetamine to individual who, unbeknownst to him, was working as a confidential informant. After his arrest, officers executed a search warrant at Bujanda’s residence in Hobbs and seized more than 500 grams of substances that tested positive for methamphetamine and $3,366.00 in cash.
During his plea hearing, Bujanda entered a guilty plea to the indictment. In his plea agreement, Bujanda admitted possessing more than 431 grams of pure methamphetamine and $3,366.00 which were seized by officers when they executed a search warrant at his residence on Nov. 14, 2013.
Bujanda has been in custody since his arrest and remains detained pending his sentencing hearing. At sentencing, Bujanda faces a statutory penalty of not less than ten years and not more than life in prison. Under the terms of his plea agreement, Bujanda also must forfeit the currency seized from his residence and a Dodge Ram truck purchased with drug proceeds.
This case was investigated by the Las Cruces office of the DEA and the Lea County Drug Task Force, and is being prosecuted by Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department, the Tatum Police Department and the Jal Police Department, and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Historic Clean Water Act Settlement Will Prevent Millions of Gallons of Sewage Discharges into San Francisco BayRead the Press Release
The U.S. Environmental Protection Agency today announced a Clean Water Act settlement requiring the East Bay Municipal Utility District (EBMUD) and seven East Bay communities to conduct extensive system repairs aimed at eliminating millions of gallons of sewage discharges into San Francisco Bay. Under today’s agreement, EBMUD and the communities will assess and upgrade their 1,500 mile-long sewer system infrastructure over a 21-year period. The work is expected to cost approximately $1.5 billion. The entities will pay civil penalties of $1.5 million for past sewage discharges that violated federal environmental law.
Since 2009, EPA, state and local regulators and environmental groups have worked to reduce sewage discharges from East Bay communities. During that period, interim actions required EBMUD and the East Bay communities to improve their sewer maintenance practices and gather information to identify priorities for investment.
The San Francisco Bay covers 1,600 square miles and is the largest Pacific estuary in the Americas, a host for millions of migratory birds and a hub of commerce and recreation for more than 7 million Bay Area residents. Unfortunately, the bay is under threat from many sources of pollution, including crumbling wastewater infrastructure that allows sewage to escape from the system. During rainstorms, in particular, older sewer systems can be overwhelmed, releasing rivers of sewage before fully treated.
In addition to polluting waterways , raw and partially treated sewage can spread disease-causing organisms, metals, and nutrients that threaten public health. Sewage can also deplete oxygen in the bay, threatening fish, seals and other wildlife.
“For many years, the health of San Francisco Bay has been imperiled by ongoing pollution, including enormous discharges of raw and partially treated sewage from communities in the East Bay,” said Jared Blumenfeld, EPA’s Regional Administrator for the Pacific Southwest. “Many of these discharges are the result of aging, deteriorated sewer infrastructure that will be fixed under the EPA order.”
Today’s settlement is the result of a Clean Water Act enforcement action brought by the EPA, U.S. Department of Justice, State Water Resources Control Board, San Francisco Bay Regional Water Board, San Francisco Baykeeper and Our Children’s Earth Foundation.
“This settlement will result in major reductions of sewage discharges into the San Francisco Bay,” said W. Benjamin Fisherow, Chief of Environmental Enforcement in the Justice Department’s Environment and Natural Resources Division. “These improvements will help reach our goal of eliminating pollution in the neighborhoods in these cities and in the bay so that citizens may rest assured that they reside in a safe, clean environment.”
The seven East Bay communities in the EBMUD settlement are:
- City of Alameda
- City of Albany
- City of Berkeley
- City of Emeryville
- City of Oakland
- City of Piedmont
- Stege Sanitary District (serving El Cerrito, Kensington, and a portion of Richmond)
“The public has been required to repair their own sewer laterals for over two years now, so it is past time that the local agencies aggressively repair their sewer systems,” said Bruce Wolfe, Executive Officer of the San Francisco Bay Regional Water Board. “This settlement spells out how the agencies will work with the public over the next 21 years to do just that and protect the bay.”
“Baykeeper will be watching the progress of these repairs closely to ensure that pollution of San Francisco Bay is reduced and eventually eliminated, and we will take action if the repairs fall short,” said Baykeeper Executive Director Deb Self.
On an annual basis, hundreds of millions of gallons of raw and partially treated sewage are discharged directly to San Francisco Bay. Also, as much as 600,000 gallons of raw sewage from community sewer systems is first discharged onto streets and other public areas—through outlets such as manhole covers—before it drains to the bay.
As part of the agreement, EBMUD and the seven communities will:
- repair and rehabilitate old and cracked sewer pipes;
- regularly clean and inspect sewer pipes to prevent overflows of raw sewage;
- identify and eliminate illegal sewer connections;
- continue to enforce private sewer lateral ordinances; and
- ensure proactive renewal of existing sanitary sewer infrastructure.
EBMUD will also immediately begin work to offset the environmental harm caused by the sewage discharges, which are expected to continue until these sewer upgrades are completed, by capturing and treating urban runoff and contaminated water that currently flows to the bay untreated during dry weather.
Keeping raw sewage and contaminated storm water out of the waters of the United States is one of EPA’s National Enforcement Initiatives. The proposed settlement is subject to a 30-day public comment period and final court approval. Read the settlement at: www.usdoj.gov/enrd/Consent_Decrees.html
Learn more about EPA’s national wastewater enforcement initiative at: http://go.usa.gov/5pak
EPA is working to restore San Francisco Bay, learn more at: http://www2.epa.gov/sfbay-delta
Historic Clean Water Act Settlement Will Prevent Millions of Gallons of Sewage Discharges into San Francisco BayRead the Press Release
SAN FRANCISCO – The U.S. Environmental Protection Agency today announced a Clean Water Act settlement requiring the East Bay Municipal Utility District (EBMUD) and seven East Bay communities to conduct extensive system repairs aimed at eliminating millions of gallons of sewage discharges into San Francisco Bay. Under today’s agreement, EBMUD and the communities will assess and upgrade their 1,500 mile-long sewer system infrastructure over a 21-year period. The work is expected to cost approximately $1.5 billion. The entities will pay civil penalties of $1.5 million for past sewage discharges that violated federal environmental law.
Since 2009, EPA, state and local regulators and environmental groups have worked to reduce sewage discharges from East Bay communities. During that period, interim actions required EBMUD and the East Bay communities to improve their sewer maintenance practices and gather information to identify priorities for investment.
The San Francisco Bay covers 1,600 square miles and is the largest Pacific estuary in the Americas, a host for millions of migratory birds and a hub of commerce and recreation for more than 7 million Bay Area residents. Unfortunately, the bay is under threat from many sources of pollution, including crumbling wastewater infrastructure that allows sewage to escape from the system. During rainstorms, in particular, older sewer systems can be overwhelmed, releasing rivers of sewage before fully treated.
In addition to polluting waterways, raw and partially treated sewage can spread disease-causing organisms, metals, and nutrients that threaten public health. Sewage can also deplete oxygen in the bay, threatening fish, seals and other wildlife.
“For many years, the health of San Francisco Bay has been imperiled by ongoing pollution, including enormous discharges of raw and partially treated sewage from communities in the East Bay,” said Jared Blumenfeld, EPA’s Regional Administrator for the Pacific Southwest. “Many of these discharges are the result of aging, deteriorated sewer infrastructure that will be fixed under the EPA order.”
Today’s settlement is the result of a Clean Water Act enforcement action brought by the EPA, U.S. Department of Justice, State Water Resources Control Board, San Francisco Bay Regional Water Board, San Francisco Baykeeper and Our Children’s Earth Foundation.
“This settlement will result in major reductions of sewage discharges into the San Francisco Bay,” said W. Benjamin Fisherow, Chief of Environmental Enforcement in the Justice Department’s Environment and Natural Resources Division. “These improvements will help reach our goal of eliminating pollution in the neighborhoods in these cities and in the bay so that citizens may rest assured that they reside in a safe, clean environment.”
The seven East Bay communities in the EBMUD settlement are:
- City of Alameda
- City of Albany
- City of Berkeley
- City of Emeryville
- City of Oakland
- City of Piedmont
- Stege Sanitary District (serving El Cerrito, Kensington, and a portion of Richmond)
“The public has been required to repair their own sewer laterals for over two years now, so it is past time that the local agencies aggressively repair their sewer systems,” said Bruce Wolfe, Executive Officer of the San Francisco Bay Regional Water Board. “This settlement spells out how the agencies will work with the public over the next 21 years to do just that and protect the bay.”
“Baykeeper will be watching the progress of these repairs closely to ensure that pollution of San Francisco Bay is reduced and eventually eliminated, and we will take action if the repairs fall short,” said Baykeeper Executive Director Deb Self.
On an annual basis, hundreds of millions of gallons of raw and partially treated sewage are discharged directly to San Francisco Bay. Also, as much as 600,000 gallons of raw sewage from community sewer systems is first discharged onto streets and other public areas—through outlets such as manhole covers—before it drains to the bay.
As part of the agreement, EBMUD and the seven communities will:
- repair and rehabilitate old and cracked sewer pipes;
- regularly clean and inspect sewer pipes to prevent overflows of raw sewage;
- identify and eliminate illegal sewer connections;
- continue to enforce private sewer lateral ordinances; and
- ensure proactive renewal of existing sanitary sewer infrastructure.
EBMUD will also immediately begin work to offset the environmental harm caused by the sewage discharges, which are expected to continue until these sewer upgrades are completed, by capturing and treating urban runoff and contaminated water that currently flows to the bay untreated during dry weather.
Keeping raw sewage and contaminated storm water out of the waters of the United States is one of EPA’s National Enforcement Initiatives. The proposed settlement is subject to a 30-day public comment period and final court approval. Read the settlement at: www.usdoj.gov/enrd/Consent_Decrees.html
Learn more about EPA’s national wastewater enforcement initiative at: http://go.usa.gov/5pak
EPA is working to restore San Francisco Bay, learn more at: http://www2.epa.gov/sfbay-delta
Fruitland Man Sentenced to Twenty-Two and a Half Years in Federal Prison for Killing Two-Year-Old Navajo ChildRead the Press Release
ALBUQUERQUE – Jason Yazzie, 31, an enrolled member of the Navajo Nation who resides in Fruitland, N.M., was sentenced today to 270 months (22.5 years) in federal prison for his voluntary manslaughter and assault conviction. Yazzie will be on supervised release for three years after completing his prison sentence.
Yazzie was arrested on Aug. 6, 2013, based on a criminal complaint alleging that he killed a two-year-old Navajo child on Aug. 2, 2013, in a location within the Navajo Indian Reservation. On April 28, 2014, Yazzie entered a guilty plea to a felony information charging him with voluntary manslaughter and assault resulting in serious bodily injury charges.
In his plea agreement, Yazzie admitted that on Aug. 2, 2013, he became extremely frustrated with the child, who had been left in his care, and repeatedly struck the child about the torso, causing the child to sustain severe chest and abdominal injuries. Yazzie also admitted that he threw the child approximately five feet in the air and across the room, causing the child to sustain severe head and neck trauma. Yazzie admitted that he acted in frustration and in the heat of passion and that his actions caused the child’s death.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and is being prosecuted by Assistant U.S. Attorney Niki Tapia-Brito.
Fresno Man Sentenced to Seven Years in Prison for Receipt of Child PornographyRead the Press Release
FRESNO, Calif. — Senior United States District Judge Anthony W. Ishii sentenced Roy Palomera, 24, of Fresno, to seven years in prison, to be followed by 18 years of supervised release, for receipt of child pornography, United States Attorney Benjamin B. Wagner announced. Palomera was ordered to pay $5,000 in restitution to one victim whose images he possessed.
According to court documents, investigators determined that Palomera was making child pornography available through a file-sharing program. When a search warrant was executed at his residence on August 30, 2012, his computer contained numerous images of minors being sexually abused. Some of the victims were prepubescent, and several images depicted violence, bondage, or other sadistic or masochistic conduct.
“This sentence should serve as a sobering reminder of the consequences facing those who sexually exploit defenseless children,” said Nick Annan, acting special agent in charge for Homeland Security Investigations San Francisco. “This defendant was among 14 individuals arrested in the Fresno area as part of Operation Sunflower, a nationwide enforcement action led by Homeland Security Investigations targeting Internet child predators. The reality is, every time a photo or a video of an innocent child being sexually exploited is viewed, that victim is violated again. That is why we owe it to all of the children identified in these cases to work tirelessly to see that all perpetrators involved in any form of child exploitation are brought to justice.”
This case was the result of an investigation by the Fresno office of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Fresno County Sheriff’s Office. Assistant United States Attorney David Gappa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet safety education.
Former Iowa City Man Sentenced to 151 Months in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
DAVENPORT, IA – On July 28, 2014, Luis Chavez Preciado, age 28, was sentenced by United States District Judge John A. Jarvey to 151 months imprisonment for conspiracy to distribute at least 500 grams of a mixture or substance containing methamphetamine and 50 grams of actual methamphetamine, announced United States Attorney Nicholas A. Klinefeldt. The defendant was also ordered to serve five years of supervised release following the imprisonment and to pay $100 towards the Crime Victims Fund.
Beginning on approximately May 21, 2013 and continuing until about September 10, 2013, Preciado conspired with others to distribute ice methamphetamine in the Iowa City and Muscatine areas. On seven occasions during the above-mentioned period Preciado or his codefendant, Nasra Lorette Fernandez Kury, sold ice methamphetamine directly to an undercover law enforcement officer. Preciado was aware of each of these transactions and was involved and assisted with many of them. As part of the investigation, law enforcement officers conducted a search of Preciado’s Iowa City residence and seized 1,099 grams of ice methamphetamine, digital scales, a shotgun and ammunition, among other items.
This case was investigated by the Muscatine County Drug Task Force; Iowa Department of Public Safety-Division of Narcotics Enforcement; Johnson County Multijurisdictional Drug Task Force; Johnson County Sherriff’s Office; Muscatine, Iowa, Police Department; Iowa City, Iowa, Police Department; and the United States Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Former Fairfield Community High School Coach Charged with Attempted Sexual Exploitation of Minors and Possession of Visual Depictions of Minors Engaged in Sexually Explicit ConductRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on July 28, 2014, Timothy C. Going, 43, formerly of Fairfield, IL, where he worked as the coach for the cross country team, the assistant coach for the track team, and a math teacher at Fairfield Community High School, was arraigned on a four-count Indictment charging him, in Counts 1 through 3, with the Attempted Sexual Exploitation of a Minor or Minors, and, in Count 4, with Possession of Visual Depictions of Minors Engaged in Sexually Explicit Conduct. A detention hearing has been scheduled for August 5, 2014, to determine whether or not Going should be held without bond pending trial.
Counts 1 through 3 of the Indictment allege that between August 24, 2012, and August 25, 2012, and between October 26, 2012, and October 27, 2012, and between November 1, 2013, and November 2, 2013, Going attempted to sexually exploit minors by using these minors in an attempt to produce child pornography. Count 4 alleges that, on May 9, 2014, Going knowingly possessed a desktop computer and a laptop computer, both of which contained visual depictions of minors engaged in sexually explicit conduct.
Trial is scheduled for September 30, 2014. The penalties for each count of Attempted Sexual Exploitation of a Minor or Minors are a term in prison of not less than fifteen years, but not more than thirty years, a fine up to $250,000, and a term of supervised release of not less than five years to life. The penalties for the offense of Possession of Visual Depictions of Minors Engaged in Sexually Explicit Conduct are a term in prison of not more than ten years, a fine up to $250,000, and a term of supervised release of not less than five years to life.
An indictment is merely the method by which federal charges are lodged. A defendant is presumed innocent of the charges until proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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."
The case was investigated by the Illinois State Police, the Fairview Heights Police Department, and the Federal Bureau of Investigation's Springfield Child Exploitation Task Force. The case is assigned to Assistant United States Attorney Angela Scott.
Former Director of Rocky Boy’s Wellness Center Sentenced to Prison for EmbezzlmentRead the Press Release
The United States Attorney's Office announced that Wilbur Harlan "Huck" Sunchild, 49, of Box Elder, Montana, was sentenced to one year in prison, two years supervised release, a special assessment of $100, and restitution of $19,735.77 during a federal court hearing in Great Falls, Montana, on July 24, 2014, before U.S. District Judge Brian M. Morris.
Sunchild was sentenced after a jury convicted him on all three counts of embezzlement from the Rocky Boy's Wellness Center. At trial, Assistant United States Attorneys Ryan G. Weldon and Jessica A. Betley proved that Sunchild created a secretive account at Native American Bank. Sunchild then diverted over $26,000 in funds for the Rocky Boy's Wellness Center to his own personal use, including gambling. Over the course of a three-month period, the account was drained. Bank records reflected that Sunchild withdrew the funds from numerous casinos in Havre, Chinook, and Great Falls. At sentencing, the government stated, "Sunchild's conduct was intentional, deceitful, and it is not his first time attempting to steal money from others for his own benefit."
Montana U.S. Attorney Mike Cotter stated, "This prosecution addresses and underscores the harm that is done to a community when individuals decide to misuse and abuse grant money. The United States Attorney's Office is committed to ensuring federal and tribal money is protected so that it can be applied to the communities it was intended to serve."
Gerald T. Roy, Special Agent in Charge, Office of Inspector General for the U.S. Department of Health and Human Services (OIG-HHS) stated, "Our office will continue to aggressively pursue those individuals who misuse HHS grant funds for their own personal benefit."
The District Court sentenced Sunchild to a year in federal prison, with two years of supervised release to follow. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Sunchild will serve all of the time imposed by the court. In the federal system, SUNCHILD 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 case was investigated by OIG-HHS and the Federal Bureau of Investigation.
Fairbanks Man Sentenced to 57 MonthsRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a man from Fairbanks, Alaska was sentenced in federal court for possession of cocaine with the intent to distribute.
Etienne Devoe, 41, from Fairbanks, Alaska, was sentenced in Anchorage, Alaska, on Monday, July 28, 2014, by Chief United States District Court Judge Ralph R. Beistline. Devoe received a sentence of 57 months in prison, a fine of $2,240, and three years of supervised release for his conviction of possession of cocaine with intent to distribute.
Devoe was convicted by a Fairbanks jury on May 1, 2014. The evidence established that Devoe was present in a residence in Fairbanks, Alaska, on February 1, 2012, when law enforcement served a federal search warrant on the residence in connection with a separate federal indictment. During the search of the residence, a duffle bag was found in the room where Devoe had been sleeping. Inside the duffle bag, investigators found six ounces of powder cocaine and a small amount of crack cocaine. Also inside the duffle bag police found a pair of men's pants consistent with Devoe's size, and in one of the pants’ pockets law enforcement found a men's wallet that contained Devoe's identification and other documents with Devoe's name on them. Inside another pocket, law enforcement found $2,240, with the money wrapped in bundles of $1,000 and $240.
Before imposing a sentence, Chief Judge Beistline commented that the community was impacted by the defendant's drug dealing. Chief Judge Beistline noted that the defendant is the father of eight children with six different mothers and that the defendant's long history of convictions for domestic violence was part of a dysfunctional cycle. Chief Judge Beistline also commented that the defendant's activities were a danger to the community; in June 2013, the defendant was found inside a house in Fairbanks that had seven shots fired at it during a drive-by shooting.
Chief Judge Beistline ordered the $2,240 fine to be used to pay the defendant's outstanding child support bills.
Devoe has another federal trial scheduled for February 2015, where he is charged in a separate matter as a member of a large scale drug conspiracy.
Ms. Loeffler commends the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; the Fairbanks Police Department, and the Alaska State Troopers for the investigation leading to the successful prosecution of Mr. Devoe.
FLORIDA BUSINESSMAN PLEADS GUILTY TO CONSPIRING TO DEFRAUD INVESTORS over 100 Investors Lost More Than $11 Million in SchemeRead the Press Release
ORLANDO, FLA. –Blayne S. Davis, 33, formerly of Naples, Fla., pled guilty today to a federal charge stemming from an investment fraud scheme in which more than 100 investors lost over $11 million, announced U.S. Attorney Ronald C. Machen Jr. and James D. Robnett, Special Agent in Charge of the Tampa Field Office of IRS- Criminal Investigation.
Davis pled guilty in the U.S. District Court for the Middle District of Florida to a charge of conspiracy to commit mail and wire fraud. He is to be sentenced Oct. 9, 2014.
The charge carries a maximum of 20 years of imprisonment and financial penalties. The parties agreed that, under the federal sentencing guidelines, Davis faces a range of between 87 and 168 months in prison and a fine of between $12,500 and $175,000. He also will be required to pay restitution of $11,894,776 to the investors who lost money.
Davis has agreed to cooperate in the ongoing investigation. A co-defendant, Donovan G. Davis, Jr., 33, of Palm Bay, Fla., has pled not guilty and is awaiting trial in the case; he is not related to Blayne Davis. A third defendant, Damien L. Bromfield, 37, of Ocoee, Fla., pled guilty on Nov. 14, 2013, to conspiracy to commit wire fraud and is awaiting sentencing.
According to a Statement of Offense, signed by Blayne Davis as well as the government, and filed with the Court today, Blayne Davis was the director of trading for Capital Blu Management, LLC, a Florida-based corporation that purported to offer investment and managed account services for investors in the off-exchange foreign currency, or “forex,” marketplace. Donovan Davis, Jr. was the managing member of Capital Blu, and Bromfield was the director of operations.
Blayne Davis and Bromfield formed Capital Blu in January 2007. In 2007, according to the statement of offense, Donovan Davis, Jr. solicited relatives, friends, and associates to invest in Capital Blu, resulting in substantial amounts being placed under the company’s management. Donovan Davis, Jr., became a managing member of Capital Blu in August 2007, working out of an office in Melbourne, Fla.
In or about September 2007, according to the statement of offense, the three men formed the CBM FX Fund, LP, which pooled investors’ money into a common fund to be traded by Capital Blu Management. Many of Capital Blu’s managed-account investors transferred their investments into the CBM FX Fund.
By January 2008, according to the statement of offense, the three partners knew that the CBM FX Fund sustained significant trading losses, resulting in large losses for its investors. At or about that time, the statement of offense states, the men began defrauding investors by means of materially false and fraudulent pretenses, representations, and promises. These included, according to the statement of offense, a series of misrepresentations about Capital Blu’s trading performance, the value of the fund, and the risks of the fund.
According to the statement of offense, the men conspired to post positive monthly returns to the CBM FX Fund’s investors from January through August of 2008, even though the fund and its investors had sustained net losses. In addition, the men diverted investors’ money from the fund to pay for Capital Blu’s operational expenses and personal expenses, including their salaries and payments for the use of a private airplane.
In or about September 2008, the National Futures Association, an independent self-regulatory organization that oversees commodities and futures trading in the United States, conducted a surprise audit of Capital Blu and suspended its operations. As of September 2008, according to the statement of offense, investors had invested over $16 million into the CBM FX Fund; the investors had lost over $11 million.
This case was transferred to the U.S. Attorney’s Office for the District of Columbia from the Middle District of Florida.
The case is being investigated by a task force consisting of agents from the IRS- Criminal Investigation, the U.S. Secret Service, the Florida Department of Law Enforcement, and the Brevard County, Fla., Sherriff’s Office. Related civil litigation was pursued by the Commodity Futures Trading Commission.
Assistance on the criminal case was provided by Paralegal Specialists Donna Galindo and Corinne Kleinman; former Paralegal Specialist Diane Hayes; Legal Assistant Angela Lawrence; Forensic Accountant Crystal Boodoo; Information Technology Specialist Thomas (Ron) Royal; and Victim Witness Advocates Yvonne Bryant and Tasheeka Hawkins, all of the U.S. Attorney’s Office for the District of Columbia. Assistant U.S. Attorneys Catherine K. Connelly and Anthony Saler, of the Asset Forfeiture and Money Laundering Section of the U.S. Attorney’s Office for the District of Columbia, have assisted with guidance on asset forfeiture matters.
The case is being prosecuted by Assistant U.S. Attorneys Jonathan P. Hooks and Ephraim (Fry) Wernick of the U.S. Attorney’s Office for the District of Columbia, who are designated as Special Attorneys in the Middle District of Florida.14-174
Drug Gang Enforcer Sentenced to Five Years in Federal PrisonRead the Press Release
Huntington, W.Va. – United States Attorney Booth Goodwin announced that Kamel Auntae Burris, 31, of Huntington, West Virginia was sentenced today to five years in federal prison for using a firearm in furtherance of a crime of violence. In November of 2013, Burris, who was wearing a mask, robbed a known drug dealer at gun point. The robbery occurred at the drug dealer’s apartment on 10th Street in Huntington.
This case arose out of a joint law enforcement investigation of Kenneth Dewitt Newman and his organization for the distribution of illegal drugs in the Huntington area. The Newman organization was responsible for the distribution of cocaine, crack cocaine, heroin, prescription pills, MDMA (a street drug akin to Ecstasy) and marijuana. The investigation led to the indictment of 15 defendants, including Burris, for their various roles in the conspiracy. Burris has been described as an enforcer for the Newman organization.
The investigation was conducted by the United States Drug Enforcement Administration, Huntington Police Department, Metropolitan Drug Enforcement Network Team and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Corinth Man Pleads Guilty to Possession of Child PornographyRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that David
Livingston Brown, 40, of Corinth, Maine, pleaded guilty today in U.S. District Court in Bangor to possession of child pornography.According to court records, in April 2013, the defendant emailed a video containing child pornography to an undercover Federal Bureau of Investigation (FBI) special agent. On July 18, 2013, a search warrant was executed at the defendant’s residence in Corinth. The defendant admitted sending and receiving images of child pornography by email and collecting hundreds of images and videos of child pornography over several years. A forensic examination of computers and computer storage devices seized from the residence revealed hundreds of images and videos of child pornography.
The defendant faces up to 20 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted jointly by the FBI and the Maine State Police Computer
Crimes Unit. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child
Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the
Internet, as well as to identify and rescue victims. For more information about Project Safe
Childhood, please visit www.projectsafechildhood.gov.Convenience Store Owner and Manager Sentenced for Running Massive Food Stamp Fraud SchemeRead the Press Release
Scheme Caused Nearly $2 Million in Losses to SNAP Program
DALLAS — Two North Texas men have been sentenced for their roles in a massive food stamp fraud scheme that caused nearly $2 million in losses to the Supplemental Nutrition Assistance Program (SNAP), announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Kamardeen Ogunleye, 52, of Arlington, Texas, was sentenced by Chief U.S. District Judge Sidney A. Fitzwater on Friday to 60 months in federal prison. On Thursday, July 24, 2014, Robert Gordon, 31, of Balch Springs, Texas, was sentenced by Judge Fitzwater to 27 months in federal prison. Each was also ordered to pay approximately $1.9 million in restitution, jointly and severally, to the U.S. Department of Agriculture (USDA), Food and Nutrition Service. Both must surrender to the Bureau of Prisons on September 9, 2014.
In April 2014, both Ogunleye and Gordon pleaded guilty to one count of conspiracy to commit food stamp fraud. Ogunleye also pleaded guilty to one count of wire fraud.
Ogunleye owned and operated KSO Dollar Mart, located in a strip mall at 1918 Martin Luther King Jr. Boulevard in Dallas. Gordon managed the business for Ogunleye. Ogunleye’s and Gordon’s scheme was funneled through this storefront, which offered very few food and beverage items to its customers.
According to plea documents filed in the case, from March 2010 to September 2013, Ogunleye and Gordon devised and executed a scheme to defraud the USDA by using, acquiring, transferring and possessing SNAP benefits. Ogunleye and Gordon conspired to purchase food stamp benefits from actual recipients in exchange for cash and at an approximately 50 percent exchange rate, meaning Ogunleye and Gordon would pay recipients approximately one dollar in exchange for every two dollars’ worth of benefits. Recipients were then free to spend the exchanged-for-cash without the restrictions imposed on SNAP benefits. Both Ogunleye and Gordon knew it was illegal to transfer SNAP benefits in exchange for cash, or for any consideration other than eligible food items.
The full amount of SNAP benefits redeemed in exchange for discounted cash were deposited into Ogunleye’s Omni American Bank and Bank of America accounts held in Arlington, Texas. Between April 9, 2010, and June 17, 2013, SNAP redemptions totaling $2,109,859 were deposited into those two accounts.
Ogunleye, who provided all cash funds that were distributed to customers in exchange for benefits, also collected and retained the bulk of the proceeds obtained from SNAP because of this scheme. For his part as a store clerk, Gordon, who was instructed by Gordon to purchase food stamp benefits in exchange for cash, received a weekly salary from Ogunleye ranging from $300 - $600 throughout the course of his participation in the conspiracy.
The USDA Office of Inspector General investigated the case. Assistant U.S. Attorney P. J. Meitl prosecuted.
Cocaine Dealer in St. Mary’s County Drug Trafficking Conspiracy Sentenced to 14 Years in PrisonRead the Press Release
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Alrahman Sharif Allen, a/k/a “Rock” and “Rahman Allen;” age 38, of Reisterstown, Maryland today to 14 years in prison followed by five years of supervised release for conspiring to distribute and possess with intent to distribute five kilograms or more of cocaine and 280 grams or more of cocaine base; and for violating his supervised release. Chief Judge Chasanow also entered an order requiring Allen to forfeit $14,706 seized from his residence during the execution of a search warrant, and a Land Rover.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; St. Mary’s County Sheriff Tim Cameron; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to his plea agreement, from February 2012 to April 2013, Allen obtained cocaine and heroin from coconspirator Jamar Holt, for distribution to customers. Allen stored drugs in his apartment and at other locations. After he received the drugs, Allen called co-conspirator Damon Estep to coordinate the delivery of cocaine to Estep and other conspirators from St. Mary’s County. On a nearly weekly basis, the conspirators would meet in Glen Burnie to pay Allen for the drugs to be distributed in St. Mary’s County. Allen agreed that he was responsible for the distribution of between five and 15 kilograms of cocaine hydrochloride, and between 280 and 840 grams of cocaine base, during the conspiracy.On April 25, 2013, law enforcement executed a search warrant at Allen’s residence and seized 29 grams of cocaine that Allen was attempting to flush down the toilet, 14 cell phones, $14,706 in drug proceeds and drug paraphernalia.
Allen had been sentenced on July 23, 2000 in federal court in Maryland to 168 months in prison followed by five years of supervised release for distributing and possessing with intent to distribute cocaine base. His drug trafficking activities occurred while on supervised release, thereby violating his terms of release.
Chief Judge Chasanow previously sentenced Jamar Holt, a/k/a “Reds,” “Jamal Holt” and “Rex,” age 36, of Baltimore, Maryland, to 20 years in prison; Damon Jerome Estep, a/k/a “Country,” age 38, of California, Maryland, to 188 months in prison; and Jeffrey Kirk Berry, a/k/a “Kojack,” to 15 years in prison.
United States Attorney Rod J. Rosenstein praised the DEA, St. Mary’s County Sheriff’s Office, and IRS-Criminal Investigation for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Leah Jo Bressack, Deborah Johnston and James A. Crowell IV, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Cedar Rapids Man and Woman Charged with Bank Robbery and Firearm OffenseRead the Press Release
Javon Dockery, age 29, and Bria Daudinot, age 21, both of Cedar Rapids, Iowa, have been indicted on charges of bank robbery and possession of a firearm in furtherance of a crime of violence. The charges are contained in an Indictment filed on July 8, 2014, in United States District Court in Cedar Rapids.
The Indictment alleges that, on or about June 26, 2014, Dockery and Daudinot robbed and aided and abetted the robbery of the 16th Avenue branch of the US Bank in Cedar Rapids. The Indictment also alleges that Dockery possessed and brandished a firearm in furtherance of the robbery.
If convicted on all charges, Dockery faces a mandatory minimum sentence of 7 years’ imprisonment and a possible maximum sentence of life imprisonment, a $500,000 fine, a $200 special assessment, and up to 5 years on supervised release following any imprisonment. If convicted, Daudinot faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, a $100 special assessment, and up to 3 years on supervised release following any imprisonment.
Dockery and Daudinot made their initial appearance in federal court in Cedar Rapids on July 22, 2014, and Daudinot appeared for a detention hearing on July 24, 2014. Both were held without bond. Their next appearance for trial is set for September 22, 2014.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Federal Bureau of Investigation and the Cedar Rapids Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 14-68.
Carter County Mother Pleads Guilty to Performing and Photographing Sex Acts with Her DaughtersRead the Press Release
The Three Victims Were Between the Ages of Two and Eight
GREENEVILLE, Tenn. – On Monday, July 28, 2014, Crystal Renee Dawn Poore, 32, of Elizabethton, Tenn., pleaded guilty in U.S. District Court for the Eastern District of Tennessee at Greeneville, to three counts of production of child pornography. Sentencing has been set for 1:30 p.m., on Oct. 20, 2014.
Poore faces a minimum term of 15 years and not more than 30 years in prison on each count. Federal sentences are not subject to parole.
In July 2013 a three-count indictment, outlining these charges, was returned against Poore by a federal grand jury sitting in Greeneville, Tenn. A factual basis filed in U. S. District Court in Greeneville lays out the details of the abuse which ended with the rescue of the girls from the home by the Knoxville Police Department Internet Crimes again Children (ICAC) Task Force with assistance from Carter County Sheriff’s Department and Tennessee Department of Children Services.
U.S. Attorney Bill Killian stated “While we are saddened about the abuse these children endured, we are very grateful that the dedication of the Knoxville Police Department Internet Crimes Against Children Task Force resulted in the crimes being detected and the children quickly rescued.”
This indictment was the result of an investigation by the Knoxville Police Department ICAC. Robert M. Reeves, Assistant U.S. Attorney represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
California Man Pleads Guilty to Maryland Murder Solved by DNARead the Press Release
DNA Sample Taken by California Police in 2013 Matched 2009 Maryland Murder Scene
Baltimore, Maryland - Dellando Recardo Campbell, age 31, of Lemoore, California, pleaded guilty today to interstate domestic violence resulting in the death of a spouse, in connection of the death of Serika Dunkley Holness.The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
“The blood Dellando Campbell left behind at the 2009 crime scene was analyzed and entered into a national DNA database, where it waited four years for a match,” said U.S. Attorney Rod J. Rosenstein. “Thanks to a routine DNA analysis performed in California when Mr. Campbell was arrested on an unrelated charge, Maryland authorities finally learned the identity of the second killer of Serika Dunkley Holness.”
According to his plea agreement, Campbell conspired with Ryan Dave Holness to murder Ryan Holness’ wife, Serika Dunkley Holness. Campbell had known Holness since 2002, when they served together in the Navy. Between May and June 4, 2009, Holness contacted Campbell by phone and text at least 34 times and arranged for Campbell to travel to New York City to assist in the murder of Serika Holness. On June 4, 2009, Holness stated explicitly to Campbell that he was going to kill the victim and that he needed Campbell’s assistance to make the murder appear to have been committed during a carjacking on the drive to Maryland.
Campbell admitted that on the evening of June 4, 2009, Holness drove Campbell and the victim from New York to Maryland. At around 1:30 a.m. on June 5, 2009, Holness, Campbell and the victim arrived at a rural area along MD Route 290, just south of MD Route 291, in Crumpton, Kent County, MD. Holness parked the Honda on a farm access road. Serika Holness was murdered in a field beside Route 290 where she was repeatedly stabbed, resulting in her death.
Campbell purposely left his own blood at the murder scene in order to provide support for Holness’s plan to tell the police that an unknown carjacker had attacked Holness and murdered the victim. Campbell admitted that he helped Holness stage the crime scene by depositing droplets of blood at various locations inside the passenger compartment of the Honda and on several of the victim’s personal items that were placed at the crime scene to be discovered by the police. Items at the murder scene from which Campbell’s DNA was later recovered included the victim’s purse, one of her sandals and a paperback book. Campbell then drove the Honda, guided by a GPS system, to a location between 6th and 7th Streets NW, Washington, D.C., where it was located and seized by homicide investigators later on June 5, 2009. Meanwhile, Holness told the police a bizarre false story about the supposed carjacking.
After a two week trial, Ryan Holness, age 33, formerly of Lexington Park, Maryland, was convicted of domestic violence resulting in the death of a spouse and sentenced on June 9, 2011, to life in prison.
The DNA profile of the unidentified male found in Holness’ car and on items at the crime scene was entered into the national DNA data base, where it was regularly compared with DNA profiles recovered since its entry. On October 22, 2013, a sample of Campbell’s DNA was routinely obtained by police in Lemoore, California. In January 2014, the California Department of Justice notified the Maryland State Police that Campbell’s DNA profile matched the DNA profile for the unidentified male in the Holness case. Campbell was arrested by the Maryland State Police and FBI in Lemoore, California on February 7, 2014.
If U.S. District Judge William M. Nickerson accepts the plea agreement, Campbell will be sentenced to 30 years in prison on November 5, 2014.
United States Attorney Rod J. Rosenstein praised the Maryland State Police and FBI for their work in the investigation and thanked the Kings County, California, District Attorney’s Office, the California Department of Justice and the Lemoore, California, Police Department for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys John F. Purcell, and Kenneth S. Clark, who are prosecuting the case.
Boeing Subcontractor Pleads Guilty to Federal Fraud ChargesRead the Press Release
St. Louis, MO – JEFFREY LAVELLE, owner and operator of J. L. Manufacturing pled guilty to multiple counts of mail and wire fraud in connection with a bribery/kickback scheme involving Boeing military aircraft parts.
Boeing Company Defense Space and Security Division is a defense contractor providing military-style aircraft to the United States Department of Defense and the United States armed services with offices and procurement operations located in St. Louis. Deon Anderson was a Procurement Officer for Boeing, residing in the St. Louis area.
J. L. Manufacturing of Everett, Washington, is an aerospace job machine shop specializing in hard metals, with the capability of producing small to medium-sized complex parts of ferrous and non-ferrous materials, and was a sub-contractor to Boeing on numerous United States government contracts. Jeffrey Lavelle, owner and operator of J. L. Manufacturing, directed the day-to-day operations of the company, and oversaw all financial aspects of the company.Inland Empire and Associates, Inc., Las Vegas, Nevada, is engaged in consulting to defense aircraft manufacturers and parts suppliers, including consulting for J. L. Manufacturing. Robert Diaz, Jr. was the owner and operator of Inland Empire, and personally consulted to J. L. Manufacturing and Jeffrey Lavelle relative to numerous Boeing sub-contracts.
Globe Dynamics International, Inc., Santa Ana, California is a leader in producing small to large, close tolerance precision machined parts and the assembly of complex components. Globe Dynamics was a sub-contractor to Boeing on numerous United States government contracts. William Boozer, owner and operator of Globe Dynamics, directed the day-to-day operations of the company, including the submission of contract bids.
Beginning in May 2011 and continuing through April 2013, Deon Anderson provided J.L. Manufacturing, through Lavelle and Diaz, non-public competitor bid information and historical price information in connection with one and more Boeing military aircraft part purchase order requests for quotes. Lavelle used that information in preparing and submitting bids on behalf of J.L. Manufacturing to Boeing for approximately nine different Boeing requests for quotes relative to those various purchase orders. Of those nine, J.L. Manufacturing was awarded seven purchase orders to supply United States military aircraft parts to Boeing totaling in excess of approximately $2,052,746. In exchange for that information, they made cash payments to Anderson in St. Louis and in California.
Jeffrey Lavelle, Mukilteo, WA, pled guilty to one count of mail fraud and two counts of wire fraud before United States District Judge Henry Autrey, in St. Louis. Sentencing has been set for October 27, 2014.
Co-defendants Deon Anderson, St. Louis; William P. Boozer, Hacienda Heights, CA; and Robert Diaz, Jr., Alta Loma, CA, previously pled guilty to related charges and are scheduled for sentencing October 15, 2014, August 15, 2014, and September 2, 2014, respectively.
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 Defense Criminal Investigative Service, Federal Bureau of Investigation, NASA-Office of Inspector General, Air Force Office of Special Investigations, Navy Criminal Investigative Service, and Internal Revenue Service-Criminal Investigations. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
Belcourt Man Sentenced for Assault with a Dangerous WeaponRead the Press Release
BISMARCK - U. S. Attorney Timothy Q. Purdon announced that on July 28, 2014, Robert DeLong Jr., 30, Belcourt, N.D., was sentenced by U. S. District Judge Daniel L. Hovland to serve two years and nine months in prison for the charge of assault with a dangerous weapon. DeLong pleaded guilty to the charge on April 11, 2014.
On July 4, 2012, DeLong struck a woman in the face, causing a torn retina, which required eye surgery to repair.
Judge Hovland also ordered DeLong to complete three years of supervised release and to pay a $100 special assessment to the Crime Victim’s Fund.
The case was investigated by Bureau of Indian Affairs – Turtle Mountain Agency.
The case was prosecuted by Assistant U. S. Attorney Brandi Russell.