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28 July 2014
Apopka Man Sentenced to 15 Years for Possessing FirearmsRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza sentenced Jermal Marquis Chambers (26, Apopka) to 15 years in federal prison for possession of firearms and ammunition in furtherance of a drug trafficking crime, and possession of firearms and ammunition by a convicted felon. The sentence included 10 years for possessing the firearms in furtherance of a drug trafficking crime and 5 years for the possession by a convicted felon offense, to be served consecutively. The Court also ordered Chambers to forfeit 10 firearms and hundreds of rounds of ammunition that he possessed. Chambers pleaded guilty on March 31, 2014. He was sentenced on July 25, 2014.
According to the plea agreement, on May 7, 2013, the Orange County Sheriff’s Office (OCSO) responded to the scene of a shooting in Apopka in which multiple attackers used multiple firearms to shoot at several victims. Evidence retrieved at the scene included .40 caliber, 9 mm, and .45 caliber shell casings. One victim was severely injured with a gunshot wound to his pelvis.
During the afternoon of May 7, 2013, unknown assailants shot at Chambers and his uncle outside an apartment complex. No one was injured during the incident.
Late in the evening on May 9, 2013, OCSO responded to another scene of a shooting in Apopka. Multiple attackers had fired bullets into a house where Chambers lived. A subsequent examination of the residence revealed approximately 68 bullet holes in the structure, along with fired cartridges from at least three firearms of different calibers near the structure.
During the execution of a search warrant at the residence, agents found several canvas bags holding a stash of cocaine and related drug paraphernalia, seven firearms, including a .223 caliber assault rifle, a nine millimeter pistol, two .38 caliber pistols, a 12-gauge shotgun, a .22 caliber rifle, and a .40 caliber pistol, along with hundreds of rounds of ammunition for these firearms. A forensic examination of shell casings recovered from the first shooting incident on May 7, 2013, revealed that they were fired from the assault rifle found in Chambers’ home. DNA evidence also established that Chambers had held the .22 caliber rifle.
Chambers was previously convicted of felony burglary in 2006 and was, therefore, prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Orange County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Bruce S Ambrose. This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
It is also a part of ATF’s Frontline strategy to reduce violent crime and improve the quality of life in communities where law enforcement efforts are focused.
Ambulance Company Owner Sentenced to Eight Years for Medicare FraudRead the Press Release
PHILADELPHIA – Anna Mudrova, 41, of Huntingdon Valley, PA., was sentenced today to eight years in prison for her role in a health care fraud scheme involving Penn Choice Ambulance Inc., operating from Huntingdon Valley, PA and Camp Hill, PA. Mudrova pleaded guilty on February 12, 2014, to conspiracy to commit health care fraud. Mudrova, who was the owner of Penn Choice, was indicted with Mikhail Vasserman, Yury Gerasyuk, Irina Vasserman, Aleksandr Vasserman, Khusen Akhmedov, and Valeriy Davydchik, all of whom have pleaded guilty.
The scheme involved more than $3.6 million in fraudulent claims submitted to Medicare. The defendants conspired to defraud Medicare by recruiting patients who were able to walk and could travel safely by means other than ambulance and who, therefore, were not eligible for ambulance transportation under Medicare requirements. The defendants, and others acting on their behalf, falsified reports to make it appear that the patients needed to be transported by ambulance when the defendants knew that the patients could be transported safely by other means and that many of them walked to the ambulance for transport. The defendants, themselves, or through others, paid illegal kickbacks to the patients as part of scheme. The defendants billed Medicare for these ambulance services as if those services were medically necessary and, as a result of the fraudulent billing, the Medicare program sustained losses of more than $1.5 million for this medically unnecessary method of transportation.
In addition to the prison term, U.S. District Court Judge Juan R. Sànchez ordered three years of supervised release, restitution in the amount of $1,860,543.42 , joint and several with the co-defendants, a special assessment of $100 and forfeiture of any assets traceable to the offense.
In prior proceedings, defendant Mikhail Vasserman, the manager for Huntingdon Valley, was sentenced to five years in prison; defendant Khusen Akhmedov, an EMT, was sentenced to 27 months in prison; ambulance drivers, Valeriy Davydchik and Yury Gerasyuk, were each sentenced to 24 months in prison; and the corporation was ordered to pay restitution and to cease all operations. The two remaining defendants are awaiting sentencing.
The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of the Inspector General. It is being prosecuted by Assistant United States Attorney M. Beth Leahy.
In addition to restitution to Medicare of $1,548,583.93, the Court ordered restitution to other insurance providers including approximately $154,866.81 payable to Highmark Inc.; approximately $128,498.86; payable to Humana, and others.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Albuquerque Man Pleads Guilty to Federal Methamphetamine Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Charles Padilla, 46, of Albuquerque, N.M., pleaded guilty today to federal methamphetamine trafficking and firearms charges. Under the terms of his plea agreement, Padilla will be sentenced to 15 years in federal prison followed by a term of not less than five years of supervised release.
Padilla was arrested on Nov. 30, 2012, based on a criminal complaint charging him with possession of methamphetamine with intent to distribute. Padilla subsequently was indicted in Dec. 2012, and charged with two counts of possession of methamphetamine with intent to distribute and two counts of using and carrying firearms in furtherance of drug trafficking crimes.
According to court filings, on Nov. 30, 2012, law enforcement officers seized approximately 21 pounds of methamphetamine that were concealed in an underground storage area when they searched a residence located in southwest Albuquerque. Thereafter, officers surreptitiously recorded a telephone conversation during which Padilla acknowledged ownership of the methamphetamine. Following Padilla’s arrest, officers searched his residence and seized 19 firearms.
Today Padilla pled guilty to one methamphetamine trafficking count and one firearms count. In his plea agreement, Padilla admitted that on Nov. 30, 2012, he unlawfully possessed methamphetamine with the intention of distributing it to others. He also admitted possessing a firearm in furtherance of a drug trafficking crime.
Padilla was remanded into federal custody after entering his guilty plea. He will be detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and the Albuquerque Police Department and is being prosecuted by Assistant U.S. Attorneys Jack E. Burkhead and Shana B. Long.
26 July 2014
Serial Bank Burglar Sentenced to Eight YearsRead the Press Release
Tampa, FL - U.S. District Judge James D. Whittemore sentenced Tyrone Michael Brinkley (45, Spring Hill) today to 8 years in federal prison for multiple bank burglaries that he committed in the Tampa Bay area between December 3, 2012, and January 5, 2013. Brinkley pleaded guilty on May 2, 2013.
According to court documents, Brinkley was released from prison in North Carolina in November 2012, after serving a prison term for a series of bank burglaries that he committed in the Durham area. Upon his release, Brinkley moved to Hernando County, Florida, and within two weeks began another crime spree, burglarizing nine banks in the Tampa Bay area. Three of the burglaries occurred on Christmas eve. During each burglary, Brinkley broke into the bank in the middle of the night. He shattered the glass window with a rock, used a pry bar to open drawers at teller stations, and removed loose and wrapped coins or cash.
During the execution of a search warrant at Brinkley's Spring Hill residence, law enforcement officers located the tools Brinkley used during the burglaries, including, among other things, a blue duffle bag containing a pry bar, gloves, pieces of broken glass, a knit cap, and a Garmin GPS. Records showed that Brinkley has over 40 prior criminal convictions and has been a habitual bank burglar since at least 1999.
This case was investigated by the Federal Bureau of Investigation, the Hernando County Sheriff's Office, the Brooksville Police Department, the Pasco County Sheriff's Office, the Hillsborough County Sheriff's Office, and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
25 July 2014
“godfather” of Camp Pendleton Sentenced to Two Years for BriberyRead the Press Release
Dept. of Defense Supervisor Nate Cervantes Accepted
Over $100,000 in BribesA Department of Defense supervisor, the self-described “Godfather” of Camp Pendleton, was sentenced today to two years in prison for accepting over $100,000 in bribes from contractors who sought to win or retain government construction and service contracts at Camp Pendleton worth millions of dollars.
Natividad Lara “Nate” Cervantes pleaded guilty in January to bribery and conspiracy to commit bribery of a public official. At today’s hearing, U.S. District Judge Anthony J. Battaglia also ordered Cervantes, who is free on bond, to self-surrender by September 30, 2014, and to forfeit $106,964 in ill-gotten gains.
“Nate Cervantes used his considerable influence and popularity at Camp Pendleton to foster a culture of corruption among contractors at the military base,” said U.S. Attorney Laura Duffy. “This scandal has undermined public confidence in the fairness of the system. Hopefully, today’s sentence will restore some of that confidence. We will investigate and expose corruption wherever it occurs in the U. S. military.”
FBI Special Agent in Charge Daphne Hearn commented, “When a government official like Mr. Cervantes violates his oath to protect and serve the citizens of this nation, it undermines the public's trust. When that happens, the FBI will aggressively pursue people like Mr. Cervantes to root out corruption at all levels of government and restore that trust. This case like many of our investigations was initiated based upon a call from the public to the FBI and shows what can happen when the public joins with law enforcement to fight crime. The FBI encourages the public to report allegations of public corruption to our hotline at (877) NO-BRIBE.”
“Today’s sentencing is a reminder that individuals who scheme to defraud the U.S. Government and violate the public’s trust will be brought to justice,” said Small Business Administration Inspector General Peggy E. Gustafson. “The actions of Natividad Cervantes and his conspirators grossly undermine the honest work being done every day by Federal employees and government contractors. I want to thank the U.S. Attorney's Office for its dedicated leadership and professionalism in pursuit of justice served today.”
Special Agent in Charge Chris Hendrickson of the Defense Criminal Investigative Service (DCIS) Western Field Office commented, “Cases such are this are not motivated by need, or other difficult personal circumstances; they are products of simple greed. We are committed to aggressively pursuing those who abuse the public trust and ultimately undermine the efforts of the Department of Defense to support our warfighters.”
“Failure to play by the rules will land you in prison,” said Erick Martinez, Special Agent in Charge of IRS Criminal Investigation. “Today’s sentencing supports IRS Criminal Investigation’s commitment to bring to justice to those individuals who seek to illegally enrich themselves through the improper awarding of government contracts.”
Bribery at Camp Pendleton
When he entered his guilty plea in January, Cervantes admitted using his position at Camp Pendleton to solicit bribes from construction companies seeking to do business on the base, including codefendant Hugo Hernandez Alonso’s company, Hugo Alonso, Inc. (HAI), and codefendant Bayani Yabut Abueg, Jr.’s company, MBR Associates, Inc. (MBRA). From about 2008 until March 2013, Cervantes served at Camp Pendleton as the Supervisor of the Construction and Service Contracts Inspection Branch, Facilities Support Contract Division. During that time Cervantes used his position supervising construction and service contracts to solicit Alonso and Abueg for bribes from their companies, HAI or MBRA. In return for helping to steer contracts to HAI and MBRA, Cervantes received cash payments from Alonso and Abueg and extensive free construction work on his personal condominium. Alonso, Abueg, and their respective companies were all sentenced last month.
As an example, Cervantes admitted that in about 2008 he agreed to accept a $25,000 bribe to assist Alonso and HAI in obtaining a $3.5 million government contract to install flooring at Camp Pendleton. In arranging for the bribe payment, Cervantes, through a third-party conduit, requested that Alonso “have the 25 package” (code for the $25,000 bribe) available on September 5, 2008. On that same day, Alonso provided the $25,000 to the third party conduit for delivery to Cervantes. Cervantes admitted that HAI paid Cervantes a total of at least $119,000 in bribes between 2008 and 2011.
The bribes to Cervantes were not limited to just HAI. Cervantes admitted to exchanging a bribe in 2011 related to the awarding of a $3 million contract at Camp Pendleton to Abueg’s company, MBRA. Further, Cervantes admitted that on March 26, 2013, he met with a cooperating witness, who agreed to pay Cervantes a $40,000 bribe in exchange for assistance in obtaining a new $4 million contract at Camp Pendleton. The bribe was to be structured over a number of payments. The first payment was scheduled for March 28, 2013, with the balance of the bribe to be paid after the contract was awarded.
On March 28, 2013, the cooperating witness met with Cervantes at a local business on Miramar Road in San Diego, California, to make the first payment that was discussed earlier in the week. During this meeting, Cervantes discussed, among other things, the payment schedule and the source of funds for the bribe payments. At the end of the meeting, the cooperating witness handed Cervantes an envelope containing $10,000 cash. At that point, FBI agents arrested Cervantes.
The public is encouraged to report possible public corruption criminal activity by calling the FBI’s public corruption/border corruption hotline at (877) NO-BRIBE or (877) 662-7423, or by calling the Department of Defense’s hotline at (800) 424-9098 or emailing [email protected].
DEFENDANT Case Number: 13cr1345-AJB Natividad Lara Cervantes Age: 64 San Diego, California CHARGESTitle 18, United States Code, Section 201(b)(2)—Bribery of public official
Maximum penalties: 15 years’ imprisonment, $250,000 fine, or three times the monetary equivalent of the bribeTitle 18, United States Code, Section 371 – Conspiracy to commit bribery of public official
INVESTIGATING AGENCY
Maximum penalties: 5 years’ imprisonment, $250,000 fine, or twice the gross amount of defendant’s pecuniary gain from the offenseFederal Bureau of Investigation
Naval Criminal Investigative Service
Internal Revenue Service, Criminal Investigation
Department of Defense Criminal Investigative Service
General Services Administration, Office of Inspector General
Small Business Administration, Office of Inspector General*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Wiggins Woman Sentenced for Social Security FraudRead the Press Release
Gulfport, Miss. – Glynell Cook Anderson, 61, of Wiggins, was sentenced to two years on probation with six months of electronic monitoring for theft of government funds, U.S. Attorney Gregory K. Davis announced today. She was also ordered to pay restitution to the Social Security Administration in the amount of $36,831.
Anderson previously pled guilty to providing repeated false statements to the Social Security Administration and receiving $36,831 in Social Security Supplemental Security Income payments to which she knew she was not entitled.
This case was investigated by the Social Security Administration - Office of Inspector General. It was prosecuted by Assistant U.S. Attorney Andrea Jones.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Westmoreland County Man Sentenced to 8 Years in Prison for Violating Child Exploitation LawsRead the Press Release
PITTSBURGH - A resident of New Kensington, Pa., has been sentenced in federal court to 97 months incarceration and 10 years supervised release on his conviction of violating child exploitation laws, United States Attorney David J. Hickton announced today.
United States District Judge Donetta W. Ambrose imposed the sentence on Mark Salego, 54, of New Kensington, Pa.
According to information presented to the court, in early 2013, Salego possessed and distributed material depicting the sexual exploitation minors.
Assistant United States Attorney Amy L. Johnston prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pennsylvania State Police and the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Mark Salego.
Week in Review - South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Timothy Heckaman, 53, of Bremen, Indiana was sentenced to 2 years probation and to pay $34,126.25 in restitution after pleading guilty to the felony offense of theft of government property. According to documents filed in this case, from in or around March 2010 through September 2011, Heckaman applied for and received extended unemployment insurance benefits through the State of Indiana Department of Work Force Development (“IDWD”). Defendant submitted weekly vouchers to IDWD and intentionally answered “No” to the question asking if he was working when, in truth, he was employed during the specified week. This case was the result of an investigation by the Department of Labor and the Indiana Department of Work Force Development. This case was prosecuted by Assistant United States Attorney Barbara Brook.
- Gerardo Martinez-Quinonez, 22, of Lansing, Illinois was sentenced to time served after pleading guilty to the felony offense of use of a false social security number. According to documents filed in this case, in January 2014, in the Northern District of Indiana, with the intent to deceive, Martinez-Quinonez falsely represented a number to be the social security account number assigned to him by the Commissioner of Social Security. This case was the result of an investigation by the Immigration and Customs Enforcement. This case was prosecuted by Assistant United States Attorney Jesse Barrett.
- Eric M. Gainer, 45, of Kewanna, Indiana was sentenced to 27 months imprisonment and 2 years supervised release after being found guilty by jury trial to the felony offense of making false statements during firearm acquisition. According to documents filed in this case, Gainer attempted to purchase a firearm on October 1, 2012 at firearms dealer. Gainer attempted to buy a Rossi 410/22 firearm despite being a convicted felon, despite being under a court restraining order and despite having a prior misdemeanor conviction for domestic violence. Gainer filled out an ATF Form 4473 and falsely stated that he did not have a prior felony conviction, falsely stating that he was not subject to a court order restraining him from harassing, stalking, or threatening his child or an intimate partner or child of such partner, and falsely denying that he had previously been convicted of a misdemeanor crime of violence (battery) involving his own daughter. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Donald Schmid.
- Leroy J. Clark, 22, of South Bend, Indiana was sentenced to 30 months imprisonment and 2 years supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, on November 7, 2013, a car Clark was riding in was stopped by police. He had a handgun in his possession in the car. Clark had a previous felony conviction in the State of Indiana. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Jesse Barrett.
- Christopher R. Candler, 39, of South Bend, Indiana was sentenced to 15 months imprisonment and 5 years supervised release after pleading guilty to the felony offense of failure to register and update registration as a sex offender as required by the Sex Offender Registration and Notification Act. According to documents filed in this case, on May 29, 2001, Candler was convicted in New Jersey Superior Court, Law Division-Criminal, Morris County for the offense of Sexual Assault. As a result of this conviction, he was required to register as a sex offender in New Jersey at least until May 29, 2016. Candler last registered as a sex offender in New Jersey on July 11, 2012. In 2013, Candler moved to South Bend, Indiana and did not register in Indiana as a sex offender. This case was the result of an investigation by the United States Marshal Service. This case was prosecuted by Assistant United States Attorney John Maciejczyk.
Week in Review - HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Darian Lyndon Brown, 36, of Merrillville, Indiana pled guilty to the felony offense of mail fraud. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation. Sentencing has been set for 10/2/2014. This case is being prosecuted by Assistant United States Attorney Randy Stewart.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Chopper Loughran, 32, of Lake Station, Indiana was sentenced to 2 years’ probation, 12 months’ home confinement and to pay $12,942.70 in restitution after being found guilty by a jury to the felony offenses of worker’s compensation fraud, wire fraud, federal program fraud and making false statements. According to documents filed in this case, Loughran worked as a mail carrier with the U.S. Postal Service in Northwest Indiana for less than a year when she filed a claim stating that she injured her ankle while delivering mail. At trial, the evidence established that Loughran filed the claim shortly after being advised that her performance was not up to standard. Loughran knowingly submitted materially false statements and information on various forms connected with applications for compensation and payable benefits. This case was the result of an investigation by the United States Postal Service, the United States Department of Labor and the United States Department of Agriculture. This case was prosecuted by Assistant United States Attorney Toi Houston.
- Jose Arriaga, 45, of Merrillville, Indiana was sentenced to 70 months imprisonment, followed by 2 years of supervised release after pleading guilty to the felony offense of intent to distribute cocaine. According to documents filed in this case, in August 2013, Arriaga was arrested while attempting to sell 4 kilograms of cocaine to a Drug Enforcement Administration confidential informant and an additional 7 kilograms of cocaine and $24,000 in cash was recovered from Arriaga’s property in Merrillville, Indiana. This case was the result of an investigation by the Drug Enforcement Agency. This case was prosecuted by Assistant United States Attorney Dean Lanter.
Week in Review - Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Christopher Smith, 31, of Fort Wayne, Indiana was sentenced to 24 months imprisonment and 2 years supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, Fort Wayne Police Department personnel attempted to pull over the vehicle Smith was driving, but Smith failed to stop and led police on a high speed chase until his car crashed into a residence. During a search of the vehicle, officers found a firearm along with ammunition. At the time, Smith was on probation for his state offense of possession of cocaine. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Tina L. Nommay.
- Trevor R. Rodriguez, 23, of Fort Wayne, Indiana was sentenced to 57 months imprisonment and 2 years supervised release after pleading guilty to selling a firearm and ammunition to a known convicted felon. According to documents filed in this case, ATF was conducting a firearms investigation that resulted in contact with Rodriguez who agreed to sell them firearms on several occasions. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Lovita Morris King.
- David Williams, 29 of Fort Wayne, Indiana, was sentenced to 1 year probation after pleading guilty to the felony offense of making a false statement on an ATF form 4473. According to documents filed in this case, Fort Wayne Police conducted a traffic stop and multiple weapons were recovered as a result of the stop. One of the guns recovered from the vehicle had been purchased by Williams who was not in the vehicle at the time of the stop. ATF agents confirmed that the firearm had been purchased by Williams. Williams would have filled out an ATF form 4473 in order to purchase the firearm. After interviewing Williams, he admitted to making a false statement on the form when he bought the gun, indicating he was the actual purchaser when he was not. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Tina L. Nommay.
UPS Driver Accused of Stealing Guns from the Shipper and Giving Firearms to Associate for Sale on StreetsRead the Press Release
RIVERSIDE, California – A United Parcel Service driver was arrested this afternoon on federal gun trafficking charges for allegedly stealing dozens of guns going through the shipping company’s Ontario hub and providing them to an associate who sold the weapons in underground transactions.
Curtis Hays, 36, of Rancho Cucamonga, was arrested without incident by special agents with the ATF. Hays is expected to be arraigned this afternoon in United States District Court.
The associate who allegedly sold some of the firearms – Dennis Dell White Jr., 35, of Moreno Valley – will be summoned to appear in federal court for an arraignment in the coming weeks.
The 16-count indictment, which was filed on July 23, alleges that Hays stole a series of packages containing guns that were supposed to be delivered to Turner’s Outdoorsman in Rancho Cucamonga. The indictment also accused Hays of stealing jewelry and mobile phones that were supposed to be delivered to other retailers, and this merchandise also was allegedly given to White.
Hays allegedly provided the firearms to White, who illegally sold the weapons to other individuals, and some of the guns then were sold to others. The firearms included 12-gauge shotguns and .45-caliber handguns.
Hays and White are charged with conspiracy; six counts of theft of firearms; six counts of receipt and possession of stolen firearms; and two counts of theft, receipt, and possession of good in interstate commerce.
White is additionally charged with being a felon in possession of firearms and ammunition.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The conspiracy count carries a statutory maximum penalty of five years in federal prison. The weapons charges each carry a potential penalty of 10 years in prison. The stolen goods charges each carry a maximum possible penalty of five years in prison. And, if convicted of being a felon in possession of firearms and ammunition, White could face up to an additional 10 years in prison.
The investigation into the stolen firearms was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives in conjunction with the Ontario Police Department.
Release No. 14-097
U.S. Attorney’s Office Settles Food Stamp Fraud Cases with 4 Mini Mart Stores for over $100,000Read the Press Release
St. Thomas, USVI – United States Attorney Ronald W. Sharpe announced today that the United States has entered into civil settlement agreements with four Virgin Islands convenience stores to resolve allegations that the stores unlawfully traded food stamp benefits for cash. The settlement requires the four stores to pay the United States in excess of $100,000, and be permanently debarred from participating in the Food Stamp Program.
“Food stamp fraud hurts children and the elderly who rely on these monthly allowances for their food,” U.S. Attorney Sharpe said. “When a substantial portion of these benefits are used to pay the retailers instead of feed these vulnerable individuals, the entire community suffers.”
The four convenience stores involved in the settlements are: Lower Love Service Station in Frederiksted on St. Croix; and Broadway Food Mart in the Fort Mylner Shopping Center, In and Out Mini Mart in Frydendahl, and Max Mart in Nisky Center on St. Thomas.
The Food Stamp Program, now known as the Supplemental Nutrition Assistance Program (SNAP), is administered in the Virgin Islands by the Food and Nutrition Service (FNS) of the United States Department of Agriculture (USDA) and the Virgin Islands Department of Human Services. The program provides funds to low-income individuals to allow them to purchase more nutritious foods. Eligible individuals receive an electronic benefit transfer (EBT) card, which operates like a debit card. Recipients use the EBT card to purchase approved food items from participating retailers.
U.S. Attorney Sharpe said that the four settlement agreements are part of a broader effort by the U.S. Attorney’s Office to address food stamp fraud in the territory. “We are putting retailers who trade food stamp benefits for cash on notice that federal authorities are on their trail,” U.S. Attorney Sharpe said. “Retailers who engage in food stamp fraud are subject to both civil monetary penalties and criminal penalties, including jail time.”
USDA is moving aggressively to control food stamp trafficking by using SNAP purchase data to identify suspicious transaction patterns, conducting undercover investigations, and collaborating with other investigative agencies, including the U.S. Attorney’s Office and local law enforcement.
SNAP retailers and recipients are reminded that only eligible food items can be exchanged for EBT benefits, and that it is illegal to exchange EBT benefits for cash or non-food items such as tobacco, alcohol, and lottery tickets.
For more information about the SNAP program or to report SNAP fraud, please go to www.fns.usda.gov. Fraud complaints may also be filed with the U.S. Attorney’s Office at (340) 774-5757.
Twin Falls Man Sentenced for Money Laundering Related to the Sale of SpiceRead the Press Release
POCATELLO - Allen W. Nagel, 45, of Twin Falls, Idaho, was sentenced today to five years of probation, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Nagel to pay a $500 fine and forfeit numerous pieces of property in the Magic Valley. Nagel pleaded guilty to the charge on June 26, 2013.
According to the plea agreement, between March 1, 2011, and October 1, 2011, the defendant owned and operated A & J Distribution with other individuals including co-defendant Josh Becker. During this time period, in various states including Idaho, A & J Distribution distributed for further sale brands of smokeable material commonly referred to as spice under the “Hayze” label. This material contained a Schedule I controlled substance analogue. Nagel knew this material was for human consumption.
Becker and Nagel received money from the sale of the material and engaged in monetary transactions using the funds derived from the sales. The transactions, some in excess of $10,000, included transfers, withdrawals, and deposits through a Twin Falls bank. According to the plea agreement, the total funds involved in the monetary transactions derived from the specific unlawful activity are not more than $400,000.
This was part of joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), is led by the Drug Enforcement Administration in conjunction with Twin Falls City Police Department, Twin Falls County Sheriff's Office, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, U.S. Customs and Border Patrol, U.S. Postal Inspection Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Idaho State Police, Ada County Sheriff's Office, Nampa City Police Department, Meridian City Police Department, Gooding County Sheriff's Office, Cassia County Sheriff's Office, and Minidoka County Sheriff's Office.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Three Sentenced for Money Laundering and Drug Trafficking CrimesRead the Press Release
CORPUS CHRISTI, Texas - Three Brownsville residents have been sentenced to federal prison for their roles in a drug trafficking and money laundering conspiracy, announced United States Attorney Kenneth Magidson. Roberto Ruiz aka Bobby, 38, Rodolfo Ruiz Jr. aka Pollo, 26, and Jose Luis Guerrero aka Pana, 41, previously pleaded guilty to possession with intent to distribute more than five kilograms of cocaine and conspiring to launder the drug proceeds.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Roberto Ruiz to 140 months, while Rodolfo Ruiz and Guerrero received respective sentences of 100 and 160 months. All will also have to serve five years of supervised release following completion of their prison terms. As part of his plea agreement, Robero Ruiz agreed to forfeit his interest in his residence in Brownsville.
In assessing her sentence, Judge Ramos noted the length of the conspiracy, which was Jan. 1, 2005, to Aug. 28, 2013. She also noted that Roberto Ruiz had a leadership role in the organization. Guerrero, she noted, had an extensive criminal history.
Also charged and convicted were Peter Morales aka Pirucha, 31, of Houston, and Leonel Mendoza Diaz aka Masacuata, 39, of Brownsville. They pleaded guilty to the drug conspiracy and were previously sentenced to 135 months in prison. Ricardo Olivas aka Bugs, 42, and Mario de la Fuente, 37, both of Brownsville, also pleaded guilty to their involvement in the conspiracies and will be sentenced at a later date.
All defendants have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated through a joint effort by the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Customs and Border Protection, Texas Department of Public Safety, Cameron County District Attorney’s Office, sheriff’s offices in Cameron and Willacy Counties, as well as police departments in Brownsville, Port Isabel, Harlingen and San Benito. The case is being prosecuted by Assistant United States Attorney Michael Hess.
Three Charged in Alleged Kidnapping HoaxRead the Press Release
Urbana, Ill. – Two men and a woman, arrested this morning, have been charged by criminal complaint with concealing material fact related to an alleged kidnapping hoax last month, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. Monica Adriana Zacatlan Ramirez, 19, of the 700 block of E. Michigan Ave., Urbana, Ill.; Eduardo Guerrero Cortez, 25, of Texas; and Jarbey Emerson Reyes Villalobos, 18, of Raintree Drive, Champaign, Ill., each made their initial court appearances this afternoon before U.S. Magistrate Judge David G. Bernthal in federal court in Urbana.
Cortez and Villalobos remain in the custody of the U.S. Marshals Service as a result of a detainer placed by U.S. Immigration and Customs Enforcement Homeland Security Investigations. Judge Bernthal ordered that Ramirez also remain detained in the custody of the U.S. Marshals Service.The affidavit, filed in support of the complaint, alleges that after nearly one month of investigation into the alleged kidnapping of Ramirez, on June 11, 2014, from Market Place Mall in Champaign, Ramirez, in fact, designed a scheme with Cortez and Villalobos to perpetrate a hoax kidnapping. The affidavit alleges that the hoax was designed to conceal Ramirez’s willingness and voluntary consent to be with Cortez and to hide Ramirez’s consent from her family and current boyfriend.
The charges are the result of investigation by the Champaign Police Department; the Federal Bureau of Investigation, Springfield and Houston Divisions; the Champaign County State’s Attorney’s Office; and, the U.S. Immigration and Customs Enforcement Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Elly M. Peirson.
If convicted, the offense carries a statutory penalty of up to five years in prison and fines of up to $250,000.
Members of the public are reminded that a complaint is merely an accusation; the defendants are presumed innocent unless proven guilty.
Tampa Woman Sentenced to Prison for Leading Marriage Fraud RingRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington yesterday sentenced Cassandra Hamilton (55, Tampa) to 15 months in federal prison for engaging in a conspiracy to commit marriage fraud. Hamilton pleaded guilty on April 15, 2014.
According to court documents, Hamilton engaged in a marriage fraud conspiracy spanning several years, and in excess of ten marriages. Hamilton arranged marriages between U.S. and Jamaican citizens for the purpose of enabling the Jamaican citizens to obtain residency and citizenship. Hamilton was paid for her involvement in arranging the marriages.
"Hamilton conspired to circumvent and exploit our nation's immigration laws for personal financial gain. Her crimes have also resulted in Jamaican nationals who are now permanently barred from obtaining lawful permanent status in the United States." said Susan L. McCormick, special agent in charge for U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) Tampa. "HSI will continue to work closely with our partner agencies, including United States Citizenship and Immigration Services (USCIS), to protect the integrity of this country's immigration system."
"As an agency of the U.S. Department of Homeland Security, USCIS has zero tolerance for marriage fraud," said Ruth Dorochoff, USCIS Tampa District Director. "Justice has been served with this sentencing, and we remain vigilant in detecting and prosecuting any immigration fraud."
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and U.S. Citizenship and Immigration Services. It was prosecuted by Assistant United States Attorney Sara C. Sweeney.
Springfield Man Sentenced to 11 Years for Attempting to Induce Two Children to Engage in Illegal Sexual ActivitiesRead the Press Release
ALEXANDRIA, Va. – Kenneth A. Brauckmann, 51, of Springfield, Virginia, was sentenced today to 132 months in prison for attempting to coerce and entice two children to engage in illegal sexual activities.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark Settles, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Washington; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Claude M. Hilton.
Brauckmann pleaded guilty on May 13, 2014. According to court documents, in November 2013, Brauckmann used a social networking website to contact a user he believed to be a 14-year-old girl, who was in fact an undercover Fairfax County police detective. Through online and text messages with the user, Brauckmann made arrangements to engage in sexual activities with her and her 13-year-old friend in his car. Brauckmann repeatedly requested nude photographs of the two girls. On Nov. 4, 2013, Brauckmann drove to a movie theater in Fairfax County, where he believed the two girls would meet him, and was arrested.
In court documents, Brauckmann admitted that he had engaged in similar illicit behavior with actual female children from whom he requested sexual encounters and nude photographs, and that, from January 2005 through his time of arrest, he engaged in multiple sexual conversations with others claiming to be girls between 13 and 16 years old.
This case was investigated by the Fairfax County Police Department and ICE-HSI. Assistant U.S. Attorney Maya D. Song prosecuted the case.
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 (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.justice.gov/psc.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-166.
Sentencing for July 17 - 24, 2014Read the Press Release
Jack Steven Taber, 61, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on July 24, 2014, for bank robbery. Taber was arrested in Casper, Wyoming. He received 37 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Casper Police Department and the Federal Bureau of Investigation.
Luis Alberto Govea-Vargas, 29, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on July 24, 2014, for illegal re-entry of a previously deported alien into the United States. Govea-Vargas was arrested in Green River, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security.
Nathan Paul Davenport, 34, of Colorado, was sentenced by Federal District Court Judge Scott W. Skavdahl on July 22, 2014, for theft of ATM machines and aiding and abetting. Davenport was arrested in Casper, Wyoming. He received 14 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $113,820.00. This case was investigated by the Douglas and Casper Police Departments, the Wyoming Highway Patrol and the Federal Bureau of Investigation.
Stefani Colleen Ruland, 40, was sentenced by Federal District Court Judge Scott W. Skavdahl on July 17, 2014, for possession of stolen mail. Ruland was arrested in Cody, Wyoming. She received 21 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $19,213.33. This case was investigated by the Cody Police Department and the U.S. Postal Service.
Irving Gonzalez-Bernal, 24, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on July 17, 2014, for illegal re-entry of a previously deported alien into the United States. Gonzalez-Bernal was arrested in Casper, Wyoming. He received 30 months imprisonment, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security.
Rochester Hills Man Sentenced to Federal Prison for Jury TamperingRead the Press Release
A Rochester Hills man was yesterday sentenced yesterday to 34 months in federal prison for jury tampering, United States Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office.
Marcus Little, 51, who was convicted in September 2013 of Endeavoring to Influence a Juror and Making a False Statement to a Federal Agent, was sentenced by United States District Judge Patrick Duggan.
The evidence presented during the trial showed that Little was present at a fraud trial in May 2011 as an observer. The trial which was held in Ann Arbor, Michigan involved three defendants who were charged with defrauding financial institutions by obtaining fraudulent mortgages on houses in Birmingham. The alleged fraud amount was more than $7 million. Little was able to learn where one of the jurors in that trial resided. During a long break in the trial, he drove to the home of the juror and tried to influence the juror on behalf of the defendants on trial. The juror immediately reported this to the police and the court.
During the course of the jury tampering investigation, the agents questioned Little. In an attempt to divert attention from himself as a suspect, Little lied to the agents. Because of the lies and other information gathered by the agents, they were able to determine that he was the person who attempted to influence the juror.
The case was investigated by the Federal Bureau of Investigation and the United States Marshals Service.
Queens Man Sentenced for Possession of Counterfeit $100 BillsRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that O’Neal Walker, 33, of Queens, N.Y., who was convicted of possession of counterfeit bank notes, was sentenced to 18 months in prison by U.S. District Court Judge Frank P. Geraci. The defendant was also ordered to pay $44,700 in restitution.
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that on September 22, 2013, New York State Troopers stopped a vehicle driven by the defendant on Interstate 390 in the town of Wayland in Steuben County. Walker was driving 102 mph in a 65 mph zone and had no valid driver’s license. Following the defendant’s arrest, troopers located $8,700 in $100 bank notes inside the car along with a financial ledger book. Inside the ledger were columns which showed dollar amounts and abbreviations for retail locations. The New York State Police contacted the United States Secret Service for investigative assistance.
The sentencing is the culmination of an investigation on the part of Special Agents of the United States Secret Service, under the direction of Special Agent in Charge, Tracy Gast, and Investigators and Troopers of the New York State Police, under the direction of Major Scott Crosier.
Secret Service Agents determined that 87 of the $100 bills recovered were actually sophisticated counterfeit bills, complete with water marks, color shifting ink, and embedded security strips. They further determined that the ledger notations were references to Home Depot, Lowes, Target, and Wal-Mart stores. As part of the investigation, Secret Service Agents reviewed store surveillance video from the dates and times of the transactions listed in the ledger. The defendant was identified on video at several area stores passing counterfeit $100 bank notes. Subsequent investigation determined that Walker had passed an additional $14,100 in counterfeit $100 bank notes within the Western District of New York. At the time the defendant passed the counterfeit bills here, he was on pre-trial release for similar conduct in the State of Ohio.
As part of the investigation, Secret Service Agents learned that Walker was also identified passing counterfeit $100 bank notes in several other states. Specifically, the defendant was identified passing $2,000 in counterfeit $100 bank notes in Ohio; $600 in counterfeit $100 bank notes in Massachusetts; $13,500 in counterfeit $100 bank notes in Syracuse, within the Northern District of New York; $19,700 in counterfeit $100 bank notes in Michigan; and $6,800 in counterfeit $100 bank notes in Arkansas. The total loss due to Walker’s actions was $65,300.President of Investment Advisory Firm Found Guilty in Manhattan Federal Court for Multi-Million Dollar Investment Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that JAMES TAGLIAFERRI, formerly the president of TAG Virgin Islands (“TAG”), was found guilty yesterday in Manhattan federal court of investment adviser fraud, securities fraud, multiple counts of wire fraud, and multiple counts of violating the Travel Act, in connection with his multi-faceted fraudulent scheme. TAGLIAFERRI, through TAG, an SEC-registered investment adviser: (a) accepted undisclosed compensation in exchange for causing his clients to invest in certain securities, (b) used client funds for illegitimate purposes, including re-paying other clients, and (c) caused fictitious securities instruments to be placed in client accounts. In total, TAGLIAFERRI’s scheme caused clients to lose at least $50 million. TAGLIAFERRI was convicted after a four-and-a-half week trial presided over by U.S. District Judge Ronnie Abrams.
Manhattan U.S. Attorney Preet Bharara said: “James Tagliaferri not only shirked his duty to act in his clients’ best interests, as investment advisers are obligated to do, he orchestrated a scheme to defraud them – taking millions of dollars in undisclosed compensation in exchange for placing their money in certain investments. With yesterday’s guilty verdict, Tagliaferri will now be punished for his actions.”
According to the Superseding Indictment filed in Manhattan federal court, other court documents, and the evidence presented at trial:
In 2007, TAGLIAFERRI opened TAG in the U.S. Virgin Islands and began offering investment advisory services to clients through that company. Previously, TAGLIAFERRI had offered such services through another company, Taurus Advisory Group, which was based in Connecticut.
Beginning in 2007, TAGLIAFERRI executed a multi-faceted scheme to defraud TAG clients. First, TAGLIAFERRI began taking undisclosed fees in exchange for placing client funds in certain companies. He received at least $1.6 million in undisclosed fees in exchange for causing clients to invest in the securities of a horse-racing company located in Garden City, New York (“Company 1”). TAGLIAFERRI placed at least $40 million of client funds in investments relating to Company 1. He also received at least approximately $1.75 million in undisclosed compensation in exchange for placing client funds in several companies affiliated with an associate of his (“Associate 1”). Ultimately, TAGLIAFERRI placed at least $80 million in client funds in investments relating to these companies.
TAGLIAFERRI often used his clients’ money to finance these undisclosed payments to TAG. He did this by transferring client funds from custodial accounts to a trust account maintained by an attorney. He then diverted a portion of those funds – the undisclosed fee – from the trust account to a TAG account in the Virgin Islands that he controlled. By routing fees to TAG through this trust account and other third-party accounts, TAGLIAFERRI was able to receive these fees with no record of such fees appearing on the monthly statements that custodial financial institutions sent to TAG clients.
Second, TAGLIAFERRI used client funds for improper purposes, including making payments to other clients who were demanding their money, and to make payments on behalf of companies he was affiliated with, including Company 1. He orchestrated a complex series of transactions between and among TAG client accounts to access funds for these purposes. For example, when an immediate need for funds arose, he caused clients to purchase shares of a publicly-traded company affiliated with Associate 1 from a client account affiliated with Associate 1 that TAGLIAGERRI controlled. Once those sales took place and TAG client funds were transferred to that account, he used those funds for his own purposes, including for payments to other clients demanding their money.
Third, TAGLIAFERRI caused fictitious securities – which he identified as “sub-notes” – to be placed in client accounts. These sub-notes purportedly obligated a company located in Pennsylvania (the “Pennsylvania Company”) to make payments to TAG clients based upon supposed promissory note agreements between the Pennsylvania Company and TAG. In reality, and as TAGLIAFERRI well knew, the Pennsylvania Company never executed any agreement that obligated it to make payments to TAG or TAG clients.
TAGLIAFERRI, 75, of St. Thomas, U.S. Virgin Islands, was convicted of one count of investment adviser fraud and six counts of violating the Travel Act, which each carry a maximum sentence of five years in prison. He was also convicted of one count of securities fraud and four counts of wire fraud, which each carry a maximum sentence of 20 years in prison. The jury was unable to reach a verdict regarding one wire fraud count and one Travel Act count, and a mistrial was declared as to those two counts. TAGLIAFERRI is scheduled to be sentenced by Judge Abrams on November 7, 2014. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the work of the U.S. Postal Inspection Service and the Criminal Investigators of the United States Attorney’s Office. He also thanked the United States Securities and Exchange Commission and the U.S. Attorney’s Office for the Eastern District of North Carolina for their assistance in this matter.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jason H. Cowley and Parvin D. Moyne, and Special Assistant United States Attorney Saima S. Ahmed of the United States Securities and Exchange Commission are in charge of the prosecution.
Tagliaferri, James Indictment
Orlando Man Arrested on Federal Drug Trafficking and Gun ChargesRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the arrest today of Fredrick Collins, Sr. (36, Orlando) on an indictment returned on April 9, 2014, charging him with distribution of cocaine, possession with intent to distribute cocaine and methylone, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon. If convicted on all charges, Collins faces a maximum penalty of life in federal prison. The indictment also notifies Collins that the United States intends to forfeit a firearm and ammunition seized from his home during the investigation.
According to the indictment, on three dates in September 2013, Collins possessed cocaine with the intent to distribute it. The indictment also alleges that Collins possessed methylone, a Schedule I controlled substance, with the intent to distribute it and that he possessed a .40 caliber semi-automatic pistol in furtherance of his drug trafficking. Collins has five previous felony convictions, any one of which bars him from possessing a firearm or ammunition under federal law.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Orlando Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Assistant United States Attorney Bruce S. Ambrose.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is another example of ATF’s Frontline Strategy to impact violent crime within our communities.
Ohio Man Indicted for Traveling Across State Lines for the Purpose of Engaging in A Sexual Act with A MinorRead the Press Release
Follow @SDILNewsA federal grand jury sitting in East St. Louis has indicted Nathan D. Maphis, 36, of New Boston, Ohio, charging him with Travel with Intent to Engage in Illicit Sexual Conduct, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. The offense charged in the indictment alleges that on June 24 and 25, 2014, Maphis travelled from the State of Ohio to Effingham County, Illinois, for the purpose of engaging in a sexual act with a person under the age of 18 years.
A federal trial date has not yet been set. If convicted of Travel with Intent to Engage in Illicit Sexual Conduct, Maphis faces a term in prison of up to 30 years; a fine of up to $250,000, and a term of supervised release of not less than five (5) years, up to and including, a lifetime of supervision once he is released.
An indictment is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
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 Madison County Sheriff’s Department, the Federal Bureau of Investigation’s Metro East Cyber Crimes and Analysis Task Force, the Maryville, Illinois, Police Department and the Illinois State Police. The case is assigned to Assistant United States Attorney Ali Summers.
Nevada Woman Sentenced to Probation for Transporting an Undocumented Mexican ToddlerRead the Press Release
ALBUQUERQUE – Serafina Madrid, 35, of Las Vegas, Nev., was sentenced this morning in federal court in Albuquerque to three years of probation for transporting an illegal alien.
Madrid was arrested on Aug. 1, 2013, on a criminal complaint charging her with unlawfully transporting of an illegal alien. On that day, law enforcement officers encountered Madrid at the Greyhound bus station in Albuquerque. At the time of the encounter, Madrid was transporting a 16-month old toddler from San Diego, Cal. to Atlanta, Ga. The toddler was a Mexican national unlawfully in the United States.
Madrid pleaded guilty on May 6, 2014, to a felony information charging her with transporting an illegal alien. In entering her guilty plea, Madrid admitted that she was transporting the child, who was an illegal alien from Mexico, when she was arrested on Aug. 1, 2013. Madrid acknowledged that she had been paid $1200.00 to transport the 16-month old toddler from San Diego, Calif., to Atlanta, Ga., and that she expected additional payment when she delivered the toddler to her mother in Georgia.
This case was investigated by the Albuquerque office of U.S. Customs and Border Enforcement, with assistance from the Albuquerque office of the DEA and the Pueblo of Laguna Tribal Police Department, and was prosecuted by Assistant U.S. Attorneys Lynn W.Y. Wang and Charles L. Barth.
National Leader of “Trinitarios” Gang Sentenced in Manhattan Federal Court to 19 Years in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that LEONIDES SIERRA, a/k/a “Junito” – the former national leader of the “Trinitarios,” a violent street and prison gang comprising primarily individuals of Dominican descent – was sentenced yesterday in Manhattan federal court to 19 years in prison for his role as the leader of a massive, multi-year racketeering conspiracy. Sierra is currently serving 221/2 years to life in prison in New York State as a result of his 1989 conviction of intentional murder. Sierra’s federal sentence will run consecutively to the New York State term of imprisonment.
Manhattan U.S. Attorney Preet Bharara said: “When Sierra created the Trinitarios Gang on Rikers Island in 1992, a dangerous and bloodthirsty organization was born, responsible for overwhelming violence both on the streets of New York and other cities, and inside the prison system. With Sierra’s conviction, the Trinitarios Gang lost its founder and leader. Sierra’s conviction and sentence are capstones to this Office’s five-year effort to dismantle the Trinitarios. The sentence imposed ensures that Sierra will not see the light of day for many years to come. It should also serve to remind members and leaders of other violent gangs that we will continue to work to bring them to justice.”
In imposing sentence, United States District Judge Paul A. Engelmayer told the defendant: “Instead of putting up a stop sign, you gave the Trinitarios a green light to commit violence by your actions. Your actions sent the message to these gang members that retribution, violence, and hits are OK.” Judge Engelmayer told Sierra that he had “no right to decide who lived or who died,” and that his actions were “wrong, destructive to society, and to the Dominican community.”
According to the Indictment, and other documents filed in the case, as well as statements made during the sentencing proceedings:
SIERRA, with two others, created the Trinitarios Gang on Rikers Island in 1992, in order to protect prison inmates of Dominican descent from other competing violent gang members. The Trinitarios quickly morphed into a violent organization both in the prison system and on the streets, as its members began to be released from prison and continued their membership. SIERRA managed and led the Trinitarios while he was an inmate at various New York State prisons, including, at the time of his arrest in this case, Attica Correctional Facility. SIERRA ordered numerous acts of violence (referred to as “green lights” in the gang’s parlance) against other inmates in the New York State prison system, and, in connection with his guilty plea in this case, also admitted that in 2011, he conspired to murder another member of the Trinitarios Gang who was at liberty in the community. Sierra targeted this victim because the victim refused to acknowledge Sierra as the gang’s Supreme Leader. Sierra and his co-conspirators were arrested in this case before their plan could come to fruition.
In his capacity as the gang’s leader, Sierra also ordered the establishment of a Central Committee, which was responsible for conveying Sierra’s orders and messages to the gang’s top leadership on the street, among other things. During the time Sierra served as the gang’s national leader, Trinitarios members operating in the Bronx and Manhattan were responsible for numerous homicides and non-fatal shootings, targeting both other members of the Trinitarios and members of rival gangs. Specifically, this Office has charged members and associates of the Bronx Trinitarios Gang with committing nine homicides between 2005 and 2010, and members and associates of the Manhattan Trinitarios Gang with committing one homicide in 2006.
Since 2009, as part of “Operation Patria” and “Operation Green Haze,” this Office has charged at least 147 members and associates of the Trinitarios Gang.
Mr. Bharara praised the work of the New York City Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, and the New York State Department of Corrections and Community Services.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Nola B. Heller, Micah W.J. Smith, Jessica Ortiz, Sarah Krissoff, Timothy D. Sini, Ryan Poscablo, and Rachel Maimin are in charge of the prosecution.
Michigan Woman Convicted of Criminal ContemptRead the Press Release
A federal jury in Detroit convicted a Commerce Township, Michigan, woman of criminal contempt based on violating an injunction that required her to comply with various legal tax obligations, the Justice Department and Internal Revenue Service (IRS) announced today.
Doreen Hendrickson was convicted of criminal contempt based on her violation of an injunction issued by U.S. District Judge Nancy Edmunds in May 2007. Hendrickson failed to file amended tax returns or repay the tax refunds as ordered by the judge, and filed an additional false tax return for 2008 on which she falsely claimed that wages she earned as a movie extra were not taxable. For more information about the injunction, please see the previously issued press release . She will be sentenced on Nov. 20.
According to court filings and evidence presented at trial, Hendrickson and her husband, Peter Hendrickson, filed federal income tax returns for the years 2002 and 2003 on which they falsely claimed they earned zero wages. Based on these false returns, the IRS issued the Hendricksons more than $20,000 in income tax refunds that they were not entitled to receive. In 2006, the department’s Tax Division sued the Hendricksons to recover these refunds. As part of that case, Judge Edmunds ordered the Hendricksons to file corrected amended tax returns for 2002 and 2003 that reported all of their income, and to repay their fraudulently obtained refunds to the IRS. Judge Edmunds also barred the Hendricksons from filing additional false tax returns.
The Hendricksons’ false 2002 and 2003 income tax returns were the subject of a prior criminal prosecution. In 2009, Hendrickson’s husband, Peter Hendrickson, was convicted of filing multiple false income tax returns, including the 2002 and 2003 returns that he filed jointly with his wife. According to evidence presented at trial, these tax returns were based on the false and frivolous theories that Peter Hendrickson promoted in his book, “Cracking the Code,” and on his website, Lost Horizons. Doreen Hendrickson filed her false 2008 income tax return while her husband was indicted for filing false tax returns.
The case was investigated by special agents of IRS – Criminal Investigation, and prosecuted by Trial Attorneys Melissa S. Siskind, Jeffrey B. Bender and Jeffrey A. McLellan of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found at the division website .
Manhattan U.S. Attorney Files and Settles Lawsuit Against New Rochelle School District for Failure to Evacuate Students with Disabilities During School-Wide Evacuation in Violation of the ADARead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today the filing and settlement of a lawsuit against NEW ROCHELLE SCHOOL DISTRICT (the “District”) for violating Title II of the Americans with Disabilities Act of 1990 (the “ADA”) by failing to evacuate two students with disabilities from the New Rochelle High School during an actual evacuation, as well as drills. The settlement, in the form of a consent decree, was approved yesterday by U.S. District Judge Cathy Seibel.
Manhattan U.S. Attorney Preet Bharara said: “We think of schools as safe havens for all students, and students with disabilities are no exception. The ADA requires that students with disabilities be given the opportunity to participate meaningfully in all programs put in place by their schools – a requirement that applies with particular force to an emergency preparedness program. There is never an excuse for jeopardizing the safety of any child.”
According to the Complaint and Consent Decree filed in Manhattan federal court, the District failed to provide two students with disabilities with “meaningful access” to the school’s emergency preparedness programs when it failed to evacuate them on January 31, 2013, during a school-wide evacuation, after the fire alarm was triggered as a result of a smoke condition in the electrical room of the New Rochelle High School. In addition, the investigation revealed that the District had failed to maintain evacuation plans for students with disabilities and failed to permit them to participate fully in evacuation drills. Title II of the ADA prohibits a public entity from, among other things, excluding individuals with disabilities from, or denying them the benefits of, its services, programs, or activities. To comply with Title II, a public entity must ensure that individuals with disabilities are afforded “meaningful access” to such services, benefits, and activities, including emergency preparedness programs.
In the Consent Decree, NEW ROCHELLE SCHOOL DISTRICT expressly acknowledges “that it failed to evacuate J.F. and A.B. from the New Rochelle High School (‘NRHS’) with the rest of the student body during an evacuation that occurred on January 31, 2013; the District also acknowledges that prior to January 31, 2013, it failed to ensure that J.F. and A.B. were evacuated from NRHS during some evacuation drills conducted for the NRHS student body.”
Under the Consent Decree, the District has agreed to ensure that students with disabilities are able to participate meaningfully in evacuations – whether actual evacuations or drills. The Consent Decree further requires the District to provide ADA training to all District employees, including school administration, aides, security personnel, and teachers who have students with disabilities in their classrooms. In addition, the District must obtain technical assistance from an expert approved by the United States for the purpose of creating and implementing written evacuation plans for students with disabilities. Finally, the District has agreed that upon the request of any student with a disability, it will make reasonable modifications to its policies, practices, and procedures concerning the placement of the student in particular classrooms.
Assistant U.S. Attorney Rebecca C. Martin is in charge of the case.
U.S. v. City School District of New Rochelle Civil Complaint
U.S. v. City School District of New Rochelle Consent DecreeMan Sentenced to Just over 15 Years for Armed Bank Robbery and Use of A Firearm During A Crime of Violence in Madison CountyRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Phillip D. Webb, 33, was sentenced today in United States District Court. Webb had previously pled guilty to a four-count indictment charging him with Armed Bank Robbery, Use and Carry of a Firearm During a Crime of Violence, Possession with Intent to Deliver Cocaine, and Felon in Possession of a Firearm. Webb was sentenced to 181 months in prison, to be followed by 5 years of supervised release, fined $800, and ordered to pay a $400 assessment. Webb was also ordered to pay restitution.
Documents filed in US District Court establish that on June 28, 2011, two women stopped at the Quick Trip station in Madison, Illinois, to buy gasoline. As the driver reentered her vehicle after paying at the pump, Webb slipped into the backseat of her car and pointed a gun at her and her mother. Webb then abducted the two victims, forcing them to drive to a nearby ATM and withdraw money from a bank account. Webb was arrested by the United States Marshals on July 18, 2011, as he fled from an apartment in Collinsville, Illinois. Upon his arrest, Webb was found in possession of two firearms, several rounds of ammunition and 26 grams of crack cocaine which he intended to distribute. Webb was a previously convicted felon, having been convicted of the offense of second degree murder in 2003.
The case was investigated by the Illinois State Police, the Bureau of Alcohol, Tobacco and Firearms, and the Madison Police Department. The case was prosecuted by Assistant United States Attorneys Ali Summers and Donald Boyce.
Man Sentenced to 40 Months for Unlawful Gun PossessionRead the Press Release
POCATELLO - Joseph Raymond Haycock, 59, formerly of Salmon, Idaho, was sentenced yesterday to 40 months in prison for unlawfully possessing a firearm, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Haycock to serve three years of supervised release following his prison term. Haycock pleaded guilty to the charge in April 2014.
According to court records, Haycock possessed a .22 caliber rifle on September 18, 2012, when he was arrested for absconding state probation and failing to register as a sex offender. Haycock is prohibited from possessing firearms due to a 2011 felony conviction for sexual abuse of a minor under the age of sixteen years in Benewah County, Idaho.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Lemhi County Sheriff’s Office. The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Lost City Man Pleads Guilty to Firearm PossessionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that JERRY WAYNE MORRISON, JR., a/k/a, Hootie, age 34, of Lost City, Oklahoma, pled guilty to Felon in Possession of a Firearm, in violation of Title 18, United States Code, Section 922(g)(1).
The charge arose from an investigation by the District 27 District Attorney’s Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The defendant was indicted in November 2013.
The Indictment alleged that on or about November 30, 2012, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, the following firearm, to-wit: one Taurus, model PT709 Slim, 9mm caliber pistol, which had been shipped and transported in interstate commerce.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
The statutory range of punishment is not more than 10 years imprisonment and/or up to a $250,000.00 fine. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Kyle Waters represented the United States.
Local Attorney Pleads Guilty to Multiple Federal Fraud ChargesRead the Press Release
St. Louis, MO – St. Charles County attorney JEFFREY WITT pled guilty to three (3) federal felony charges: falsifying documents to obtain a bank loan secured by a St. Louis County home, which did not actually belong to him; using an associate to impersonate the true home owner at the bank loan closing; and cashing legal client settlement checks without their knowledge.
According to court documents and statements made in court, during September 2013, Witt submitted a loan application in the name of an individual identified in documents as PW, in order to obtain a $100,000 line of credit secured by the PW’s St. Louis area residence. PW, the individual home owner was unaware of Witt’s loan application. Witt provided a female associate with false documentation and identification in PW’s name so the associate could impersonate PW during the loan closing at the bank. Together they were able to obtain the $100,000 bank loan credit line. Witt immediately drew out $60,000 from the credit line, which he deposited into his law firm bank account and then withdrew for personal purposes. Subsequent to the loan closing, PW learned of Witt’s action and confronted him. In order to conceal the scheme, Witt falsely represented to PW that he had cancelled the loan. To convince PW, Witt created a false letter on fake bank letterhead, forged the signature of a bank officer and created a false “Deed of Release,” all of which purportedly released the Deed of Trust on PW’s home securing the fraudulent t loan.
Additionally, as part of his law practice, Witt would enter into settlement discussions on behalf of one and more of his legal clients. Several times, without the knowledge of his clients, Witt settled their legal cases, accepted settlement checks on their behalf and forged their signatures on their settlement checks. He admitted with his plea that he deposited the checks into his law firm bank account and spent those funds on his own personal expenses and business expenses unrelated to those clients without their knowledge. Further, and in order to conceal his scheme, Witt falsely represented to his clients that he had not settled their cases or received settlement checks.
Witt was arrested on the charges by FBI Special Agents on March 7, 2014, as he arrived in New York City from Turkey.
Witt, St. Charles, MO, pled guilty to one felony count of bank fraud, one felony count of aggravated identity theft and one felony count of mail fraud before United States District Judge E. Richard Webber. Sentencing has been set for October 16, 2014.
Bank fraud carries a maximum penalty of 30 years in prison and/or fines up to $1 million, mail fraud carries a maximum of 20 years in prison and/or fines up to $250,000 and aggravated identity theft carries a mandatory 2-year term of imprisonment consecutive to any term of imprisonment on the fraud charges and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
Leader of 30th Street Crew Drug Trafficking Organization Sentenced to 78 Months in JailRead the Press Release
WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, announced today that Qiydaar Miller, age 34, the leader of a Wilmington-based drug organization, known as the “30th Street Crew,” was sentenced in U.S. District Court to 78 months in prison and 4 years supervised release, for conspiracy to distribute heroin, crack cocaine, cocaine, and marijuana, in violation of Title 21, United States Code, Sections 841(a)(1) and 846.
Miller has been incarcerated since June 13, 2013, when he and eight other 30th Street Crew members were arrested and held without bail, on federal drug trafficking charges. In total, fourteen individuals were ultimately indicted on federal drug trafficking charges in connection with this investigation. Of the eight co-defendants listed on Miller’s indictment, which included Albari Malik Johnson, Tamir Collins, Keenan Williams, Walter Thomas, Ibrahim Sesay, Andre Cephas, Harry Coverdale, and Corey Pendergrass, all but Thomas have pleaded guilty to federal drug charges. Tamir Collins, Miller’s brother was sentenced to six years in jail in April 2014. Other co-defendants are now serving jail terms of between two and four years.
According to court documents, following a nearly five month wire-tap investigation, law enforcement identified and dismantled the 30th Street Crew, which was led by Miller and Collins, and which was a dominant drug trafficking organization throughout Wilmington, with their center of operations located in the northside of Wilmington. The 30th Street Crew used a residence at 3000 N. Madison Street, Wilmington – situated just blocks away from P.S. DuPont Middle School – as its headquarters for many years. That house served as a retail center for drug distribution, with a regular influx of customers and sub-distributors arriving to make drug purchases from conspiracy members. The house was also a target of violence, including at least two shootings which occurred outside the residence in November and December 2011.
Law enforcement further determined that Johnson regularly received shipments of heroin from a New York-based source, and then distributed the heroin to Miller and other co-conspirators. Miller ultimately admitted to being responsible for the distribution of at least 700 grams of heroin. Miller was also responsible for the sale of cocaine and crack cocaine – purchasing as much as kilogram of cocaine at a time, which he and his co-conspirators would “break down” into smaller, distribution quantities for further sale.
The Indictment and arrests of these individuals was the product of a long-term investigation into the drug-trafficking organization, led by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Wilmington Police Department, and the State of Delaware Department of Corrections Division of Probation and Parole. Critical support for the investigation and arrests was provided by Delaware State Police, Delaware Division of Gaming Enforcement, New Castle County Police Department, United States Marshals Service, and the United States Department of Agriculture.
Acting United States Attorney David C. Weiss thanked the federal, state, and local law enforcement agencies for their participation in this investigation, and stated, “This investigation dismantled a large-scale, violent drug trafficking organization that had heretofore operated with near-impunity on the streets of Wilmington.”“Street violence has become a normal way of life for many people living in Wilmington. These career criminals are holding communities hostage, and gang members think they can keep beating the system. But not anymore,” said Steve Vogt, Special Agent in Charge of the FBI Baltimore Division which covers Delaware. “This case and others to follow will show these violent offenders that we are not going away.”
The case was being prosecuted by Assistant United States Attorneys Ilana Eisenstein and Jamie M. McCall, District of Delaware. For further information, please contact AUSA McCall at 302-573-6079 or AUSA Eisenstein at 302-573-6082.Keithville Man Sentenced to 60 Months in Prison for Theft of Firearms from WarehouseRead the Press Release
SHREVEPORT, La. –A Keithville man was sentenced Thursday to 60 months in prison and three years of supervised release for his part in stealing firearms from a Shreveport warehouse, U.S. Attorney Stephanie A. Finley announced today.
James Minor Jr., 44, of Keithville, La., was sentenced Thursday by U.S. District Judge S. Maurice Hicks Jr. to one count of conspiracy to steal firearms. According to evidence presented at the guilty plea on March 13, 2014, Minor conspired with David McNeil, Cameron Johnson, and Luther Williams Jr. to steal 63 Colt M4 Carbine rifles from a shipping warehouse in Shreveport on October 13, 2013. Johnson worked as a guard at the warehouse and allowed Minor and the other defendants inside. More than 55 rounds of ammunition were later found at McNeil’s residence after a search warrant was executed.
For their roles in the case, Williams, 23, of Shreveport, was sentenced on June 30, 2014, to 33 months in prison; Johnson, 22, of Keithville, was sentenced to 37 months in prison; and McNeil, 31, of Keithville, was sentenced to 72 months in prison. They were all ordered to serve three years of supervised release. Minor, Johnson, and Williams were also ordered to pay restitution of $30,062 jointly and severally.This case is part of Project Safe Neighborhoods. Project Safe Neighborhoods is a Department of Justice initiative designed to reduce firearm crimes by removing dangerous and persistent felons from the community and promote firearm safety. Project Safe Neighborhoods attorneys prosecute a variety of federal firearms violations listed in Titles 18 and 26 of the U.S. Code, including illegal possession of firearms and commission of crimes with firearms.
The ATF, Caddo Parish Sheriff’s Office and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney James G. Cowles Jr. prosecuted the case.
Justice Department Obtains $80,000 Settlement in Housing Discrimination Lawsuit Against California LandlordRead the Press Release
The Justice Department today announced an agreement with the owners and operators of Woodland Garden Apartments in Fremont, California, to settle allegations of discrimination against families with children. Under the consent order, which must still be approved by the U.S. District Court for the Northern District of California, the defendants are required to pay $77,500 to the victims of their discrimination and an additional $2,500 to the government as a civil penalty. The settlement resolves a complaint filed by the department on Oct. 25, 2013.
The lawsuit alleged that the apartment complex maintained rules that discriminated against families with children in violation of the Fair Housing Act. Specifically, the lawsuit challenged a rule that prohibited children from playing outside in the common grassy areas of the complex and provided that families would be evicted if they violated this rule. The lawsuit also alleged that the actions of the defendants constituted a pattern or practice of discrimination.
The lawsuit arose as a result of complaints filed with the U.S. Department of Housing and Urban Development (HUD) by five families who lived at Woodland Garden Apartments and by Project Sentinel, a fair housing organization operating in Northern California. After an investigation of the complaints, HUD issued a charge of discrimination and the complainants were referred to the department.
“Federal law guarantees families with children the right to equal access to housing, including full access to their homes’ amenities and facilities,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “Settlements such as this one help ensure that all families can enjoy that right.”
“An apartment complex may not impose conditions on families with children that they do not impose on other residents,” said HUD’s Assistant Secretary for Fair Housing and Equal Opportunity Gustavo Velasquez . “HUD and DOJ remain committed to enforcing fair housing laws that ensure all people share the same rights to use and enjoy their homes.”
In addition to monetary payments, the consent order requires defendants to implement a nondiscrimination policy, establish new enforcement procedures for rule violations and undergo training on the Fair Housing Act.
Fighting illegal housing discrimination is a top priority of the department. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.
More information about the Civil Rights Division and the laws it enforces is available at the division's website . Persons who believe they have experienced or witnessed unlawful housing discrimination may call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected] , or contact HUD at 1-800-669-9777. More information about the Fair Housing Act can also be found at the department website or the HUD website .
Justice Department Obtains $80,000 Settlement in Housing Discrimination Lawsuit Against California LandlordRead the Press Release
WASHINGTON – The Justice Department today announced an agreement with the owners and operators of Woodland Garden Apartments in Fremont, California, to settle allegations of discrimination against families with children. Under the consent order, which must still be approved by the U.S. District Court for the Northern District of California, the defendants are required to pay $77,500 to the victims of their discrimination and an additional $2,500 to the government as a civil penalty. The settlement resolves a complaint filed by the department on Oct. 25, 2013.
The lawsuit alleged that the apartment complex maintained rules that discriminated against families with children in violation of the Fair Housing Act. Specifically, the lawsuit challenged a rule that prohibited children from playing outside in the common grassy areas of the complex and provided that families would be evicted if they violated this rule. The lawsuit also alleged that the actions of the defendants constituted a pattern or practice of discrimination.
The lawsuit arose as a result of complaints filed with the U.S. Department of Housing and Urban Development (HUD) by five families who lived at Woodland Garden Apartments and by Project Sentinel, a fair housing organization operating in Northern California. After an investigation of the complaints, HUD issued a charge of discrimination and the complainants were referred to the department.
“Federal law guarantees families with children the right to equal access to housing, including full access to their homes’ amenities and facilities,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “Settlements such as this one help ensure that all families can enjoy that right.”
“An apartment complex may not impose conditions on families with children that they do not impose on other residents,” said HUD’s Assistant Secretary for Fair Housing and Equal Opportunity Gustavo Velasquez. “HUD and DOJ remain committed to enforcing fair housing laws that ensure all people share the same rights to use and enjoy their homes.”
In addition to monetary payments, the consent order requires defendants to implement a nondiscrimination policy, establish new enforcement procedures for rule violations and undergo training on the Fair Housing Act.
Fighting illegal housing discrimination is a top priority of the department. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.
More information about the Civil Rights Division and the laws it enforces is available at the division's website. Persons who believe they have experienced or witnessed unlawful housing discrimination may call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777. More information about the Fair Housing Act can also be found at the department website or the HUD website.
Justice Department Announces Proposed Amendment to Americans with Disabilities Act Regulations to Expand Access to Movie Theaters for Individuals with Hearing and Vision DisabilitiesRead the Press Release
The Justice Department announced today that Attorney General Eric Holder has signed a Notice of Proposed Rulemaking (NPRM) to amend the Title III regulation for the Americans with Disabilities Act (ADA) to require movie theaters to provide closed movie captioning and audio description in order to give persons with hearing and vision disabilities access to movies.
"This proposed rule will allow all Americans, including those with disabilities, to fully participate in the moviegoing experience. With this proposal, the Justice Department is taking an important step to ensure consistent access for people with vision and hearing disabilities," said Attorney General Eric Holder. "Twenty-four years after its passage, the Americans with Disabilities Act remains a critical tool for extending the promise of opportunity and inclusion for everyone in this country."
Closed movie captioning refers to captions that are delivered to the patron’s seat and are visible only to that patron. Audio description enables individuals who are blind or have low vision to enjoy movies by providing a spoken narration of key visual elements of a movie, such as actions, settings, facial expressions, costumes and scene changes. Audio description is transmitted to a user’s wireless headset. The department is proposing to provide a consistent nationwide standard for movie theaters to exhibit movies that are available with closed movie captioning and audio description for all showings. The department is also proposing to require theaters to provide a specific number of closed captioning and audio description devices. Theaters need not comply with the proposed rule if doing so would cause an undue burden or fundamental alteration. The department is not proposing to require movie theaters to add captions or audio description to movies that are not already produced and distributed with these features.
The department is proposing a six-month compliance date for movie theaters’ digital movie screens and is seeking public comment on whether it should adopt a four-year compliance date for movie theaters’ analog movie screens or should defer rulemaking on analog screens until a later date.
“As we celebrate the 24th anniversary of the Americans with Disabilities Act on Saturday, we are reminded that people with disabilities still do not have full access to all aspects of American cultural life,” said Jocelyn Samuels, Acting Assistant Attorney General for Civil Rights. “Although some movie theaters are making strides towards meeting their ADA obligations, there is a good deal of inconsistency among theaters across the United States. This proposed rule is intended to ensure that, regardless of where a person with a hearing or vision disability lives, that person will be able to attend movies with their friends and family and fully enjoy this important social and cultural activity.”
On July 26, 2010, the department published an Advance Notice of Proposed Rulemaking (ANPRM) asking how requirements for movie captions and audio description should be implemented. The ANPRM sought public comment regarding the type of accessibility requirements for captioning and video [audio] description the department should consider, particularly in light of the industry’s conversion to digital cinema technology. The department received more than a thousand comments in response to the ANPRM and these comments were taken into consideration when developing the proposed rule.
The department intends to publish the proposed rule in the Federal Register in the near future, and public comments on the NPRM will be due 60 days from the date the rule is published.
The NPRM is available for review on the ADA website .
Those interested in finding out more about the ADA may call the department’s toll-free ADA Information Line at 800-514-0301 (TTY 800-514-0383) or visit the ADA website.
Judge Sentences Texan to 11 Years for Cocaine Trafficking SchemeRead the Press Release
PITTSBURGH - A Texas resident has been sentenced in federal court to 135 months incarceration and five years supervised release on his conviction of violating the federal drug laws, United States Attorney David J. Hickton announced today.
United States District Judge Donetta W. Ambrose imposed the sentence on Dominique Jackson, 27, formerly of Denton, Texas, and currently incarcerated.
According to information presented to the court, from in and around July 2010 and continuing until Oct. 7, 2010, Jackson conspired with other individuals to distribute five kilograms or more of a mixture and substance containing a detectable amount of cocaine.
Assistant United States Attorney Amy L. Johnston prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Allegheny County Sheriff's Office, the McKeesport Police Department, the Clairton Police Department, the Allegheny County Housing Authority Police Department, the Pennsylvania State Police, the Allegheny County Police Department, and the Munhall Police Department for the investigation leading to the successful prosecution of Dominique Jackson.
Jamaican Man Sentenced for Identity Fraud ConspiracyRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron yesterday sentenced Richard Anthony Davis (43, Jamaica) to three years and six months in federal prison for conspiracy to obtain fraudulent Florida driver licenses, false claim to U.S. citizenship, and aggravated identity theft. The Court also ordered Davis to forfeit $2,926 in cash, which is traceable to proceeds of the offenses. Davis pleaded guilty to these offenses on April 30, 2014.
According to court documents, Davis conspired with a Customer Service Representative (CSR) at the Osceola County Tax Collector’s Office to issue Florida driver licenses (DL) and identification cards (ID) to over 280 persons based upon fraudulent and fraudulently-obtained U.S. Virgin Islands identity documents. Those documents included genuine birth certificates, social security cards, and fraudulent U.S. Virgin Islands identifications or driver licenses, with corresponding photographs. The CSR, Walter Brown, previously pleaded guilty and has been sentenced to 2 years and a day in prison.
Davis escorted his customers to the Osceola Tax Collector’s Office on days prearranged with Brown. Some of his customers were illegal aliens, previously deported aliens, convicted felons, and others with unknown status. The customers would go directly to Brown’s window with the supporting documentation that Davis gave them for their license application. Brown would then issue the customers Florida DL/IDs. Davis charged his customers $7,500 each and he paid Brown between $300 and $700 per Florida DL/ID.
The Osceola County Tax Collector’s Office reported Brown to law enforcement after internal controls revealed suspicious activity involving his issuance of Florida State Driver Licenses and identification cards. The Tax Collector’s Office cooperated fully in the investigation and Brown was terminated from his employment. Davis is a citizen and national of Jamaica. He last legally entered the United States in 1991, but overstayed his legal residence and never departed the United States.
Beginning in 2000, Davis falsely represented himself to be a United States citizen under five different names.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It was prosecuted by former Special Assistant U.S. Attorney Myrna A. Mesa and Assistant U.S. Attorney Bruce S. Ambrose.
Husband of Former Country Club Hills Police Chiefsentenced for His Role in $1.25 Million Grant Fraud SchemeRead the Press Release
SPRINGFIELD, Ill. – Ronald W. Evans, Jr., husband of former Country Club Hills police chief Regina R. Evans, was sentenced today for his role in a fraud scheme that misused state grant money awarded in 2009 to We Are Our Brother’s Keeper, a not-for-profit program owned and operated by the couple. U.S. District Judge Sue E. Myerscough ordered that Evans serve 12 months in federal prison, followed by six months of home confinement and two years of supervised release. Evans, 47, was allowed to remain on bond and was ordered to self-report to the federal Bureau of Prisons on Sept. 8, 2014. Evans was also ordered to pay restitution, joint and severally, with his wife, in the amount of $917,194, to the Illinois Department of Commerce and Economic Opportunity.
Ron Evans pled guilty on Aug. 1, 2013, to one count each of money laundering and wire fraud. His wife, Regina Evans, pled guilty on June 17, 2013, to charges of fraud, and was sentenced on May 1, 2014, to serve five years in prison and to pay restitution. In a separate case, Regina Evans also pled guilty and was sentenced for obstruction of justice, witness tampering and conspiracy to obstruct justice and witness tampering.
According to court documents and statements, a $1,250,000 state grant awarded to Ron and Regina Evans on behalf of We Are Our Brother’s Keeper was misused for the couple’s personal benefit, their family members, friends, and associates, and for repayment of indebtedness, and little, if any, of the training proposed in the grant agreement was ever completed. The grant agreement provided for an estimated 40 participants to receive bricklaying and electrical pre-apprenticeship training and GED preparation, at the Regal Theater, another entity owned by the Evanses.
Assistant U.S. Attorney Timothy A. Bass prosecuted the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois. The investigation was conducted by participating agencies of the Central District of Illinois’ U.S. Attorney’s Office’s Public Corruption Task Force including the U.S. Postal Inspection Service, Chicago Division; the Internal Revenue Service Criminal Investigations; and, the Illinois Secretary of State Office of Inspector General. Individuals who wish to provide information to law enforcement regarding matters of public corruption are urged to call the U.S. Attorney’s Office at 217-492-4450.
Haskell Man Sentenced to 35 Months for Failure to Register as Sex OffenderRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that ALBERT PRESTON ALEXANDER, a/k/a Alexander Preston, a/k/a Albert Shadon, a/k/a Preston Alexander, a/k/a Albert Reton Alexander, a/k/a Albert Preton Alexander, age 42, of Haskell, Oklahoma, was sentenced to 35 months imprisonment, followed by 5 years of supervised release for Failure to Register as Sex Offender, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3).
The charge arose from an investigation by the Muskogee County Sheriff’s Department and the United States Marshal’s Service. ALEXANDER was indicted in September 2013 and pled guilty in December 2013.
The Indictment alleged that from in or about May, 2013 until on or about September 4, 2013, in the Eastern District of Oklahoma, and elsewhere, ALEXANDER, an individual required to register as a Sex Offender under the Sex Offender Registration and Notification Act, traveled in interstate commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
ALEXANDER has a felony conviction from the State of California, Riverside County, for the offense of Induce Intercourse.
The Honorable James H. Payne, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Edward Snow represented the United States.
Gulfport Man Sentenced to 24 Months in Prison for Aggravated Identity Theft in Connection with False Income Tax ReturnsRead the Press Release
Gulfport, Miss. – Richard Terrell Jasper, 39, of Gulfport, was sentenced today in U.S. District Court for aggravated identity theft, announced U.S. Attorney Gregory K. Davis and Special Agent in Charge Gabriel L. Grchan with IRS Criminal Investigation.
Jasper pled guilty on May 5, 2014, to one count of aggravated identity theft, which charged that he knowingly used, without lawful authority, the means of identification of another person, that is, the name and social security number of another person, during and in relation to the felony of theft of government funds. The theft of government funds involved numerous income tax refund checks that the defendant obtained and deposited into his bank accounts. The refunds were issued based on fraudulent income tax returns filed using unknowing victims’ names and social security numbers.
Jasper was sentenced by United States District Judge Sul Ozerden to a term of imprisonment of 24 months, to be followed by one year of supervised release, and a $10,000 fine. He was also ordered to pay restitution to the IRS in the amount of $43,215.
This case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Ruth Morgan.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Georgia Woman Convicted of Involvement in Counterfeit Check SchemeRead the Press Release
RICHMOND, Va. – Rasheeda McConnell, 33, of Atlanta, Georgia, was convicted yesterday by a federal jury of conspiring to commit bank fraud and six counts of bank fraud.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Gary Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Kathy A. Michalko, Special Agent in Charge of the United States Secret Service’s Washington Field Office, made the announcement after the verdict was accepted by U.S. District Judge John A. Gibney.
McConnell was indicted on March 4, 2014, by a federal grand jury on conspiracy and bank fraud charges. According to court records and evidence at trial, McConnell was part of a group that stole business checks from commercial mailboxes and used them to make counterfeit checks. The group then recruited people to cash the checks from areas where the homeless or unemployed would congregate. McConnell drove conspirators for several of these transactions and also attempted to recruit cashers via email and social media.
McConnell faces a maximum penalty of 30 years in prison on each count of conviction when she is sentenced on October 27, 2014. Five co-defendants previously pled guilty in this case and are awaiting sentencing. Christopher Eugene Pope is scheduled to be sentenced on August 15, 2014; Devante Carson is scheduled to be sentenced on August 27, 2014; Kevin Lavon Smith, and Rodney Keith Barnes, II, are scheduled to be sentenced on September 8, 2014; and Brandon Jermaine Johnson is scheduled to be sentenced on October 17, 2014. Another co-defendant, Damion Latoras Foster, remains at large.
This case was investigated by the United States Postal Inspection Service, United States Secret Service, and Chesterfield County Police Department as members of the Metro-Richmond Identity Theft Task Force. Other member agencies of the Task Force include: the Bureau of Diplomatic Security, the U.S. Department of State, Richmond Police Department, and Henrico County Division of Police. Prosecutions for the Task Force are handled by the United States Attorney’s Office and the Office of the Attorney General for the Commonwealth of Virginia. Virginia Assistant Attorney General and Special Assistant U.S. Attorney Charles A. Quagliato and Assistant U.S. Attorney Michael C. Moore are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-28.
French Citizen Sentenced for Obstructing a Criminal Investigation into Alleged Bribes Paid to Win Mining Rights in GuineaRead the Press Release
Frederic Cilins, a 51-year old French citizen, was sentenced today in the Southern District of New York to 24 months in prison for obstructing a federal criminal investigation into alleged bribes to obtain mining concessions in the Republic of Guinea.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Preet Bharara of the Southern District of New York and Assistant Director in Charge George Venizelos of the FBI’s New York Field Office made the announcement. The sentence was imposed by U.S. District Court Judge William H. Pauley III.
“Cilins offered to bribe a witness in an FCPA investigation to stop the witness from talking to the FBI,” said Assistant Attorney General Caldwell. “Today’s sentence holds Cilins accountable for his effort to undermine the integrity of our justice system, and sends a message that those who interfere with federal investigations will be prosecuted and sent to prison.”
“Frederic Cilins went to great lengths to thwart a Manhattan federal grand jury’s investigation into an alleged bribery scheme in the Republic of Guinea,” said U.S. Attorney Bharara. “In an effort to prevent the federal authorities from learning the truth, Cilins paid a witness for her silence and to destroy key documents. Today, Cilins learned that no one can manipulate justice.”
“Cilins obstructed the efforts of the FBI during the course of this investigation,” said Director in Charge Venizelos. “His guilty plea and sentence demonstrate our shared commitment with the department’s Criminal Division and U.S. Attorney’s Office to hold accountable those who seek to interfere with the administration of justice. This case should be a reminder to all those who try to circumvent the efforts of a law enforcement investigation: the original crime and the cover-up both lend themselves to prosecution.”
According to court documents, Cilins obstructed an ongoing federal investigation concerning potential violations of the Foreign Corrupt Practices Act (FCPA) and other crimes. Federal law enforcement was investigating whether a particular mining company with which Cilins was affiliated paid bribes to officials of a former governmental regime in the Republic of Guinea to obtain and retain valuable mining concessions in the Republic of Guinea’s Simandou region. During monitored and recorded phone calls and face-to-face meetings, Cilins agreed to pay substantial sums of money to induce a witness to the alleged bribery scheme to leave the United States to avoid questioning by the FBI, as well as to give documents to Cilins for destruction that had been requested by the FBI as part of the investigation. Cilins also sought to induce the witness to sign an affidavit containing false statements regarding matters under investigation by the grand jury. That witness was the former wife of a now-deceased Guinean government official who held an office in Guinea that allowed him to influence the award of mining concessions.
Cilins pleaded guilty on March 10, 2014 to a one-count superseding information charging him with obstruction of a federal investigation. In addition to his sentence, he was ordered to pay a fine of $75,000 and forfeit $20,000.
The case was investigated by the FBI. The case is being prosecuted by Trial Attorney Tarek Helou of the Criminal Division’s Fraud Section and Assistant United States Attorney Elisha J. Kobre of the Southern District of New York. The Criminal Division’s Office of International Affairs and Office of Enforcement Operations provided valuable assistance in the investigation.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa .French Citizen Sentenced in Manhattan Federal Court to 24 Months in Prison for Obstructing A Criminal Investigation of Alleged Bribes Paid to Secure Mining Rights in GuineaRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Leslie R. Caldwell, the Assistant Attorney General for the U.S. Department of Justice’s Criminal Division, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that FREDERIC CILINS, a French citizen, was sentenced today to 24 months in prison for obstructing a federal criminal investigation of alleged bribes paid to secure valuable mining rights in the Republic of Guinea. CILINS pled guilty to one count of obstructing a criminal investigation in March 2014 before U.S. District Judge William H. Pauley, III, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Frederic Cilins went to great lengths to thwart a Manhattan federal grand jury’s investigation into an alleged bribery scheme in the Republic of Guinea. In an effort to prevent the federal authorities from learning the truth, Cilins paid a witness for her silence and to destroy key documents. Today, Cilins learned that no one can manipulate justice.”
Assistant Attorney General Leslie R. Caldwell said: “Cilins offered to bribe a witness in an FCPA investigation to stop the witness from talking to the FBI. Today’s sentence holds Cilins accountable for his effort to undermine the integrity of our justice system, and sends a message that those who interfere with federal investigations will be prosecuted and sent to prison.”
FBI Assistant Director-in-Charge George Venizelos: “Cilins obstructed the efforts of the FBI during the course of this investigation. His guilty plea and sentence demonstrate our shared commitment with the U.S. Attorney’s Office to hold accountable those who seek to interfere with the administration of justice. This case should be a reminder to all those who try to circumvent the efforts of a law enforcement investigation: the original crime and the cover-up both lend themselves to prosecution.”
According to the superseding information and other documents filed in Manhattan federal court, as well as statements made at today’s sentencing proceeding and at CILINS’s guilty plea:
CILINS endeavored to obstruct an investigation being conducted by a federal grand jury sitting in the Southern District of New York into potential violations of the Foreign Corrupt Practices Act (“FCPA”) and money laundering. The investigation related to allegations that a mining company with which CILINS was affiliated paid bribes to officials of a former governmental regime of the Republic of Guinea to win valuable mining concessions in the Simandou region of Guinea. During monitored and recorded phone calls and face-to-face meetings, CILINS agreed to pay substantial sums of money to induce a witness to, among other things, destroy and turn over to CILINS for destruction documents related to the bribery allegations. CILINS did so knowing that those documents were being sought by the FBI and were to be produced before a federal grand jury. He also sought to induce the witness to sign an affidavit containing false statements regarding matters under investigation by the grand jury, and tried to get the witness to leave the United States to avoid being questioned by the FBI about these allegations.
In addition to the prison sentence, CILINS, 51, a resident of France, was ordered to pay a fine of $75,000 and to forfeit $20,000.
Mr. Bharara praised the outstanding efforts of FBI in the investigation, which he noted is ongoing. He also thanked the Justice Department’s Office of International Affairs and Office of Enforcement Operations for their assistance in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Elisha J. Kobre and Trial Attorney Tarek Helou of the Fraud Section of the Criminal Division are in charge of the prosecution.
Four Eastern Idaho Men Arrested on Gun and Drug Dealing ChargesRead the Press Release
POCATELLO - Keith Laudric Finn, 46, of Idaho Falls, Idaho, Sergio Garcia, 25, of Rigby, Idaho, Fernando Montiel, 52, of St. Anthony, Idaho, and Juan Carlos Nunez-Mascareno, 36, of Rexburg, Idaho, were arrested this week on drug and gun related charges, U.S. Attorney Wendy J. Olson announced. An arrest warrant is outstanding for Uriel Garcia, 29, of Sugar City, Idaho. Federal indictments were filed in United States District Court in Boise on July 9, 2014, and in Pocatello on July 22, 2014.
One indictment alleges that Finn, previously convicted in Bonneville County, Idaho, of unlawful possession of a weapon by a convicted felon, unlawfully possessed three handguns and distributed methamphetamine three times between January and May 2014.
The second indictment alleges that Sergio and Uriel Garcia conspired to distribute methamphetamine and that Sergio Garcia distributed methamphetamine six times between September 4 and October 23, 2013, once with the assistance of Uriel Garcia.
A third indictment alleges that Montiel distributed methamphetamine on May 15 and June 12, 2014.
The fourth indictment alleges that Nunez-Mascareno distributed methamphetamine six times between October 2013 and January 2014.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Bonneville County Sheriff’s Office, the Fremont County Sheriff’s Office, the Madison County Sheriff’s Office, and the Department of Homeland Security Investigations.
The maximum penalty upon convictions for conspiracy to distribute and distribution of methamphetamine is life in prison and a $10,000,000 maximum fine. The maximum penalty upon a conviction for unlawful possession of a firearm is ten years in prison and a $250,000 fine.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho. The case was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration, in conjunction with, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Canyon County Narcotics Unit, Meridian Police Department, Ada County Sheriff’s Office, Idaho State Police, and the Mini-Cassia Drug Task Force. Other federal agencies participating in the OCDETF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Four Charged in NFL-Related Securities Fraud Scheme Targeting Senior CitizensRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced that Peter D. Kirschner, 49, of Delray Beach, Stuart R. Rubens, 61, of North Miami, Dean R. Baker, 34, of Coral Springs, and Bret A. Grove, 35, of Delray Beach, were charged with conspiracy to commit mail fraud and substantive mail fraud. The four men are charged for allegedly operating call rooms targeting senior citizens and tricking them into purchasing $2.4 million in stock. U.S. Attorney Wifredo A. Ferrer stated, “Securities fraud jeopardizes the well-being of our citizens. The defendants in this case are alleged to have raised approximately $2.4 million by targeting the elderly and representing that they had technology that was about to be used by the NFL. In truth, there was no such arrangement. Today’s charges are the first step in holding them accountable for robbing these elderly folks of their hard-earned savings for their own personal gain.”
“Those charged today materially misrepresented investments to a vulnerable part of our population,” said George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office. “The FBI will continue to prioritize investigations of investment fraud perpetrators who target the elderly.”
According to the indictment and related Securities and Exchange Commission (SEC) civil complaints, the defendants pressured seniors and other investors into purchasing stock in Thought Development Inc. (TDI), a Miami Beach-based company that claimed its signature invention generated a green laser line on the football field visible in the stadium to players, fans as well as on television. TDI represented that use of its technology would decrease the time used by officials to determine first downs, freeing up broadcast time that could then be sold to television advertisers. The defendants raised approximately $2.4 million through the use of call rooms that targeted more than 200 investors throughout the nation, who were told that an initial public offering (IPO) in TDI was imminent and that their money would be safe and used to develop the ground-breaking technology. Instead, the indictment alleges that the IPO was not forthcoming as promised, and at least 50 percent of the offering proceeds were retained by the defendants or paid to sales agents through undisclosed, exorbitant commissions and fees. The defendants also lured investors by misrepresenting that TDI’s technology was about to be used by the NFL. One investor even made a second $75,000 investment on top of an initial $2,500 investment after being told that NFL Commissioner Roger Goodell purchased TDI’s technology for use in the 2013 Super Bowl. In fact, there was no such arrangement. The defendants also neglected to tell investors the TDI laser technology posed a potential risk of blindness to players on the football field.
The SEC recently announced similar civil charges against Baker and Grove, filed today in federal district court in Miami. This brings to six the number of individuals charged criminally with this scheme. The U.S. Attorney for the Central District of California charged Daniel Baker and Demosthenes Dritsas with mail fraud stemming from this investigation, both of whom recently pled guilty.
Mr. Ferrer commended the investigative efforts of the FBI and the SEC. This case is being prosecuted by Assistant U.S. Attorney Roger Cruz.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Washington State Man Sentenced to Twenty Years in Prison for String of Bank RobberiesRead the Press Release
Follow @SDILNewsA former resident of Spokane, Washington, Carl Kieffer, 49, was sentenced in federal district court on July 25, 2014, for a total of seven bank robberies, three of which were charged by Information or Indictment, and four of which were considered relevant conduct, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The three charged bank robberies were of the Bank of O’Fallon in O’Fallon, Illinois, on October 15, 2013 (Case No. 13-30251-MJR); the Lusk State Bank in Lusk, Wyoming, in the District of Wyoming, on August 26, 2013 (Case No. 14-30051-MJR); and the Fifth Third Bank in Charlotte, Michigan, in the Western District of Missouri, on October 9, 2013 (Case No. 14-30052-MJR). These bank robberies were charged in separate cases but later consolidated into a single proceeding.
The four bank robberies that were not charged but were considered relevant conduct in the ultimate determination of the sentence were the Chase Bank, in Novi, Michigan, on September 5, 2013, the New Carlisle Federal Savings Bank, in Tipp City, Ohio, on September 13, 2013, the Bank and Trust of Farmersville, Farmersville, Illinois, on September 16, 2013, and the Huntington National Bank, in Bolivar, Ohio, on October 3, 2013.
Evidence at sentencing revealed that Kieffer lied to both an O’Fallon Detective and FBI agents when he told them that he was dying from cancer, and that was why he began robbing the banks – so that he could enjoy the rest of his life, spending his money on hotels, women and food. Medical records confirmed that while Kieffer was in poor health, he did not have any terminal illnesses.
Before imposing sentence, the Honorable Michael J. Reagan noted Kieffer’s extremely lengthy criminal history, as well as the fact that Kieffer had been incarcerated approximately 30 of the 49 years of his life. Judge Reagan noted that Kieffer was “one of those rare individuals who can’t function in a civilized society because he can’t conform his behavior” to society’s norms. Judge Reagan noted that the evidence of these crimes, as well as the evidence of Kieffer’s past criminal behavior, and his utter lack of remorse for the tellers who were the victims of his robberies, support a finding that Kieffer is likely to recidivate. Judge Reagan therefore imposed a total sentence of 240 months in federal prison for these crimes. Judge Reagan ordered that this sentence be followed by a three year term of supervised release and that Kieffer pay a total special assessment due of $300. Judge Reagan also ordered Keiffer to pay to each of the banks who did not receive all of their proceeds back. Specifically, he ordered mandatory restitution of $7,015 to Lusk State Bank and $3,600 to Fifth Third Bank. He further ordered discretionary restitution of $8,000 to Chase Bank, $1,950 to New Carlisle Federal Savings Bank, $8,480 to Bank and Trust of Farmersville, and $2,800 to Huntington National Bank. The discretionary restitution is imposed as a term of Kieffer’s supervised release.
The Bank of O’Fallon robbery in O’Fallon, Illinois, was investigated by the O’Fallon Police Department, the Belleville Police Department, the Swansea Police Department, the Fairview Heights Police Department, the Shiloh Police Department, the St. Clair County Sheriff’s Department, the Illinois State Police, and the Federal Bureau of Investigation. The Lusk State Bank robbery, in Lusk, Wyoming, was investigated by the Lusk Police Department, the Wyoming Office of the Attorney General, Division of Criminal Investigation and the Federal Bureau of Investigation. The Fifth Third Bank robbery in Charlotte, Michigan, was investigated by the Charlotte Police Department, the Michigan State Police, the Eaton County Prosecuting Attorney’s Office, and the Federal Bureau of Investigation. The cases were assigned to Assistant United States Attorney Angela Scott.
Former Upper Peninsula Resident Charged Federally for Sexual Abuse of A MinorRead the Press Release
MARQUETTE, MICHIGAN – U.S. Attorney Patrick Miles announced today that a federal grand jury has charged Tommy Alan Cain, 61, with five counts of Sexual Abuse by Threat, one count of Abusive Sexual Contact by Threat, and six counts of Sexual Abuse of a Minor. The indictment alleges Cain, formerly from Kincheloe, engaged in sexual acts with a minor victim over a four-year period beginning in 2007 on trust lands of the Sault Ste. Marie Tribe of Chippewa Indians. The Sexual Abuse by Threat counts each carry a maximum sentence of life. The remaining counts carry maximum sentences of three years and fifteen years, respectively.
Cain was arrested yesterday in Battle Creek. After his initial appearance in federal court, he was remanded to the custody of the U.S. Marshal pending a hearing next week on whether he should be released on bond or detained pending trial.
The charges are the result of an investigation conducted by the Sault Ste. Marie Tribal Police and the Marquette office of the Federal Bureau of Investigation (FBI). Assistant U.S. Attorney Hannah N. Bobee is prosecuting the case.
Investigation of this matter continues. Anyone with information regarding this investigation is encouraged to call the FBI or local law enforcement.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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Former U.S. House of Representatives Employee Pleads Guilty to Theft of Government PropertyRead the Press Release
Brian Prokes, 28, a former office manager in the U.S. House of Representatives, pleaded guilty today for causing the House of Representatives to pay more than $19,000 in excess salary and unauthorized travel expenses, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
According to court documents, Prokes worked as the office manager for a U.S. Congressman. Prokes’s responsibilities included transmitting salary and bonus information to the House of Representatives’ Office of Payroll and Benefits in order to adjust the pay of employees in the Congressman’s office. Prokes admitted that, between April 2012 and March 2013, he submitted unauthorized paperwork to the Office of Payroll and Benefits to pay himself larger salary and bonus than he had been approved to receive.
In addition, Prokes admitted that, between February 2012 and December 2012, he charged unauthorized, personal travel expenses for himself and an acquaintance to a government credit card used by the Congressman’s office. The excess salary payments and unauthorized travel expenses amounted to more than $19,000.
Prokes, of Atlanta, Georgia, is scheduled to be sentenced on Oct. 14, 2014, before U.S. District Judge Rudolph Contreras in the District of Columbia.
This case was investigated by the FBI. This case is being prosecuted by Trial Attorneys Kevin O. Driscoll and Sean F. Mulryne of the Criminal Division’s Public Integrity Section.Former School Teacher Sentenced to More Than Eight Years in Prison on Child Pornography ChargesRead the Press Release
OAKLAND – Russell Patrick Pfiester was sentenced yesterday to 97 months in prison for receipt of child pornography, announced United States Attorney Melinda Haag and Nick Annan, Acting Special Agent in Charge for U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in San Francisco.
Pfiester pleaded guilty on Feb. 6, 2014, to receipt of child pornography. According to the plea agreement, Pfiester admitted to receiving at least 100 videos through the Internet using a peer-to-peer file sharing network. The videos showed children, including prepubescent children, engaged in sexually explicit conduct, with some videos depicting sadomasochistic conduct.
Pfiester, 44, formerly of Fremont, Calif., was indicted by a federal grand jury on May 9, 2013. He was charged with receiving and possessing child pornography.
The sentence was handed down by the Honorable Yvonne Gonzalez Rogers, United States District Court Judge, in Oakland. In rejecting Pfiester’s request for a lower sentence, Judge Gonzalez Rogers stressed the need to protect the public and noted, among other things, Pfiester’s previous employment as a school teacher. Judge Gonzalez Rogers also sentenced the defendant to a 10-year period of supervised release, during which time, Pfiester will be prohibited from being near any location where children are likely to gather. The defendant has been in custody since his Feb. 6, 2014, guilty plea.
Andrew Huang is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Vanessa Quant. The prosecution is the result of an investigation by HSI.
(Pfiester indictment )