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24 July 2014
Two Quad Cities Men Face Federal Charges Related to Heroin Overdose Death of Iowa WomanRead the Press Release
Rock Island, Ill. – A Rock Island, Ill., man, Steven Waldrip, 47, made his initial appearance in federal court today to face charges returned by a federal grand jury this week charging him with one count of distributing heroin resulting in death and three counts of distributing heroin, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. Waldrip is scheduled for arraignment and detention hearings tomorrow before U.S. District Judge Sara L. Darrow at 9:00 a.m., in Rock Island.
The indictment alleges that on Dec. 15, 2013, Waldrip distributed heroin that resulted in death. In addition, the indictment alleges that Waldrip distributed quantities of heroin on three occasions: Apr. 28, May 1, and May 29, 2014.
In a separate, but related, case, Kyle Joseph Wilson, 24, address unknown, was indicted by a federal grand jury in April 2014, and charged with one count of distribution of heroin resulting in death. Wilson was arrested on May 12, 2014, and was ordered to remain in the custody of the U.S. Marshals Service. Trial for Wilson is scheduled on Sept. 9, 2014, in Rock Island, before U.S. District Judge Darrow.
The charges against both defendants are the result of investigation of the heroin overdose death of a Bettendorf, Iowa woman, who was found dead at her residence on Dec. 16, 2013. Investigative agencies include the Bettendorf Police Department, Quad Cities Metropolitan Enforcement Group, and U.S. Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Don Allegro.
If convicted, the statutory penalty for distribution of heroin resulting in death is a minimum 20 years in prison to life; if a defendant has a prior felony drug conviction, the statutory penalty is life in prison. For each count of distribution of heroin, the statutory penalty is up to 30 years in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty.Two Men Sentenced to Decades in Prison for 2008 Slaying of Government WitnessDefendants Found Guilty of Murder, Criminal Street Gang ChargesRead the Press Release
WASHINGTON – Willie Walker, Jr., 24, and Ricky Donaldson, 23, were sentenced today to prison terms of 88 years and 45 years, respectively for violent crimes, including the 2008 slaying of a government witness, announced U.S. Attorney Ronald C. Machen Jr.
Walker and Donaldson were found guilty by a jury in March 2014, following a trial in the Superior Court of the District of Columbia. The jury found them guilty of first-degree premeditated murder while armed with aggravating circumstances; conspiracy to commit first-degree murder while armed; obstructing justice; several firearms offenses; and related criminal street gang charges. The jury also found Walker guilty of charges of aggravated assault and assault with intent to kill for two related shootings in February and March of 2008.
The defendants, both of Washington, D.C., were sentenced by the Honorable John Ramsey Johnson.
“Willie Walker Jr. orchestrated the killing of a government witness from his jail cell, and Ricky Donaldson did the shooting,” said U.S. Attorney Machen. “Now Walker will spend 88 years behind bars and Donaldson will spend 45 years in prison for their cold-blooded efforts to avoid justice at all costs. This case demonstrates our commitment to punish those who target witnesses for simply telling the truth.”
According to the government’s evidence, Walker and Donaldson were members of a criminal street gang that operated in the area of the LeDroit Park neighborhood in Northwest Washington. The gang, known as “LDP,” or “Westside,” sold crack cocaine, among other illicit activities, in the Kelly Miller housing development in LeDroit Park.
On Feb. 4, 2008, after an argument, Walker shot a 55-year-old woman multiple times in the legs. The victim immediately identified Walker as her assailant to law enforcement. A warrant was issued for Walker’s arrest, but he was not immediately apprehended. On March 31, 2008, Walker argued with Delois “Peaches” Persha, 44. Ms. Persha referenced the earlier shooting that Walker had committed, telling him that she would not be treated the same way. In response, Walker shot Ms. Persha multiple times in the torso, and then, as she lay on the ground, multiple times in the face. Ms. Persha survived the attack, and immediately identified Walker as her assailant to law enforcement. For her protection, Ms. Persha, who had grown up in LeDroit Park, was relocated out of the area.
After Walker was arrested and detained in July 2008, he and Donaldson, along with the aid of other LDP gang members, began communicating about hunting down and killing the witnesses against Walker. On Sept. 13, 2008, Donaldson located Ms. Persha, who had returned to the area of LeDroit Park, and fatally shot her multiple times in the back and head. Ms. Persha died from her injuries on Sept. 18, 2008.
The jury found Walker guilty of crimes for his role in the February and March 2008 shootings, as well as the murder of Ms. Persha. Donaldson was found guilty in the murder.
In announcing the sentences, U.S. Attorney Machen praised the work of the detectives, officers, and crime scene technicians who investigated the case for the Metropolitan Police Department. He also expressed appreciation for the work of the FBI’s Cellular Analysis Survey Team. He commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Marian Russell, Sharece Muschette, Gary Nails, and Rommell Pachoca; Lead Paralegal Specialist Philip Aronson; Supervisory Paralegal Specialist Sharon Newman; Victim/Witness Advocates Jennifer Clark and Yvonne Bryant; Victim/Witness Security Specialists Michael Hailey, Deborah Cannon, M. Laverne Forrest, Katina Adams-Washington, and David Foster; Intelligence Specialist Zachary McMenamin; former Intelligence Specialist Larry Grasso; Criminal Investigators John Marsh and Durand Odom; and Litigation Technology Specialist Leif Hickling.
Finally, U.S. Attorney Machen recognized the work of Assistant U.S. Attorneys Chrisellen Kolb, Elizabeth Danello, David Goodhand, and Suzanne Curt, who provided legal assistance, Assistant U.S. Attorneys Alessio Evangelista and Michael Brittin, who investigated the case, and Assistant U.S. Attorneys Kimberley Nielsen and Jeffrey Pearlman, who prosecuted the case at trial.
14-172Two Men Indicted for Marijuana Cultivation in Lassen National ForestRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Carlos Cortez, 29, and Ismael Rameriz, 24, charging them with conspiracy to distribute marijuana and manufacture of marijuana, United States Attorney Benjamin B. Wagner announced.
According to court documents, in June 2014, during an aerial flight, deputies of the Tehama County Sheriff’s Office saw a large marijuana cultivation site near North Fork Antelope Creek, in Tehama County In the Lassen National Forest.
On July 11, 2014, a multiagency taskforce searched the marijuana cultivation site. Before they entered the site, agents saw Cortez and Rameriz watering marijuana plants. When agents entered, Cortez and Rameriz fled, but were quickly captured. A total of 6,636 marijuana plants were seized and destroyed at the cultivation site.
This case was the product of an investigation by the Tehama County Sheriff’s Office, the United States Forest Service, and California Department of Fish and Wildlife. Assistant United States Attorney Olusere Olowoyeye is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two Eagle Butte Men Charged with Possession of Stolen FirearmsRead the Press Release
United States Attorney Brendan V. Johnson announced that two Eagle Butte, South Dakota, men have been indicted by a federal grand jury for Possession of Stolen Firearms.
Eugene Condon, age 35, and Robert McLane, age 29, were indicted on July 15, 2014. They appeared before U.S. Magistrate Judge Mark A. Moreno and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years of custody and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that in October 2013 in Eagle Butte, Condon and McLane knowingly and unlawfully received, possessed, sold and disposed of stolen firearms.
The charges are merely an accusation and Condon and McLane are presumed innocent until and unless proven guilty.The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Condon and McLane were released on bond pending trial. Trial has been set for September 23, 2014.
Two Dodge City Residents Indicted in Alleged Document Fraud RingRead the Press Release
WICHITA, KAN. – Two Dodge City residents – one from Mexico and the other a United States citizen – have been indicted by a federal grand jury here for allegedly selling birth certificates and Social Security cards to undocumented aliens, and then driving them to Oklahoma to obtain state-issued ID cards, U.S. Attorney Barry Grissom said Thursday.
The two, Ronald Davila-Vega, 34, a Mexican national, Sindy [cq] Herrera-Pacheco, 54, a U.S. citizen, were indicted Wednesday on one count of document fraud, one count of transporting illegal aliens, one count of aiding the unlawful production of identification documents, and two counts of aggravated identity theft. Davila-Vega is scheduled to make a first appearance here at 11 a.m. Friday before U.S. Magistrate Judge Karen M. Humphreys. Herrera-Pacheco is being held in the Ford County jail and is expected to be transported to Wichita for a court appearance next week.
According to an affidavit filed in the case, Davila-Vega, himself a person who previously had been deported to Mexico, sold sets of documents for $1,000 to other undocumented aliens in the United States unlawfully so they could obtain employment at southwest Kansas meat packing plants. For another $1,000, Vega and Herrera-Pacheco would drive the buyers to driver’s license offices in Oklahoma so they could obtain a photo ID card. Many of the plants now require a photo ID for new hires, Grissom said.Grissom said investigators and his office are working with Oklahoma officials in the case and to address the problem of fraudulently-obtained ID cards.
The case is being investigated by the Kansas Bureau of Investigation and Homeland Security Investigations in cooperation with the Dodge City Police Department. At least two of the persons who allegedly bought documents from Davila-Vega were teenagers from Central America.
The identification documents sold relate to United States citizens. The investigators are in the process of identifying those persons and notifying them that their identities have been compromised, he said.
If convicted, the defendants face a maximum sentence of 15 years on the document fraud charges, 5 years on the transporting of aliens charges and a mandatory two years in prison on the aggravated identity theft charges. The case is being prosecuted by Assistant U.S. Attorney Brent Anderson.Twelve Ms Army National Guard Soldiers IndictedRead the Press Release
Jackson, Miss - Twelve current or former Mississippi Army National Guard soldiers have been indicted by a federal grand jury for their roles in defrauding the Mississippi Army National Guard’s Recruiter Assistance Program (“GRAP”) which provided financial incentives to enlisted soldiers for assisting in recruiting potential soldiers into the Mississippi Army National Guard, U.S. Attorney Gregory K. Davis announced today.
Antonio L. Hales, 40, of Laurel; Tyrone Strickland, 46, of Pachuta; Ralph Smith, III, 33, of Soso; William David Middleton, 36, of Raleigh; Michael Joseph McNeil, 49, of Louin; Crystal A. Mayers, 32, of West Point; James Anthony Holder, 49, of Bay Springs; Esau Moffett, 27, of Hattiesburg; and Kaya T. Durr, 36, of Hattiesburg are all charged with conspiracy to defraud the United States, conspiracy to steal government funds, conspiracy to commit identity theft, and theft of government funds. The indictment alleges that Hales, McNeil and Moffett provided the personal identification information of recruited soldiers to the other co-defendants for the purpose of filing false GRAP claims. Strickland, Smith, Middleton, Holder, Mayers and Durr falsely represented that they assisted in the recruitment of certain potential soldiers when they had not actually assisted in the recruitment. According to the indictment, the conspiracy began in January 2006 and continued until February 2011.
In a separate indictment, Jamie E. Jackson, 43, of Mendenhall, is charged with six counts of theft of government funds and six counts of wire fraud; and Byron J. Collins, 24, of New Hebron, is charged with making a false statement. The indictment alleges that Jackson, a National Guard Captain, obtained GRAP incentive payments to which he was not entitled because he was a commissioned officer. Byron J. Collins is alleged to have made a false statement to a U.S. Secret Service Agent who was investigating the case when he told the Agent that he had received the GRAP incentive payments when, in actuality, Jamie E. Jackson had received the payments.
A third indictment charges Roshanna Edwards, 43, of Lumberton, with theft of government funds. Edwards is alleged to have received $10,000 in GRAP incentive payments to which she was not entitled.
The Guard Recruiter Assistance Program (GRAP) provided financial incentives to enlisted soldiers for assisting in recruiting potential soldiers into the Mississippi Army National Guard. All enlisted soldiers were eligible to receive incentive payments through the GRAP, except for soldiers whose primary job assignment was recruitment. Commissioned Officers were not eligible to participate in the GRAP. A soldier would receive $1,000 for the enlistment of each potential solider he or she assisted in recruiting to the National Guard. The soldier would receive an additional $1,000 when the potential soldier graduated from basic training.
The statutory maximum penalties faced by the defendants are: five years in prison and a $250,000 fine per count for conspiracy, ten years in prison and a $250,000 fine per count for theft of government funds, five years in prison and a $250,000 fine per count for making a false statement, and twenty years in prison and a $250,000 fine per count for wire fraud.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.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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Texas Doctor Convicted of Health Care Fraud ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A Dallas County, Texas, physician has been convicted of 15 counts of health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Tariq Mahmood, 63, of Cedar Hill, Texas, was found guilty by a jury of conspiracy to commit health care fraud, seven counts of health care fraud, and seven counts of aggravated identity theft following a four day trial before U.S. District Judge Michael Schneider.
According to information presented in court, Mahmood, a general practitioner, owned and operated several hospitals in the state of Texas, including Cozby Germany Hospital in Grand Saline, Renaissance Terrell Hospital in Terrell, Central Texas Hospital in Cameron, Community General Hospital in Dilley, and Lake Whitney Medical Center in Whitney. From January 2010 to April 2013, Mahmood and others carried out a scheme to defraud Medicare and Medicaid through the submission of false and fraudulent claims. Mahmood and others added, changed, deleted, and incorrectly sequenced diagnostic codes in a way that did not reflect the actual diagnoses and conditions of the patients. They submitted false and fraudulent claims to Medicare and Medicaid based on the added, changed, deleted, and incorrectly sequenced diagnostic codes. Mahmood and others also unlawfully used Medicare beneficiaries’ names and Medicare numbers in order to commit health care fraud. Mahmood was indicted by a federal grand jury on April 11, 2013.
Mahmood faces up to 10 years in federal prison for the conspiracy conviction, 10 years for each health care fraud conviction and two years for each aggravated identity theft conviction. A sentencing date has not been set.The case was investigated by the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU), the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), the Federal Bureau of Investigation (FBI), and the U.S. Postal Inspection Service (USPIS). This case was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and Frank Coan and Special Assistant U.S. Attorneys Alma Hernandez and Ken McGurk.
Any individuals with knowledge of these or other health care fraud violations are encouraged to contact the Department of Health and Human Services’ fraud hotline at 1-800-HHS-TIPS (447-8477)
Tampa Man Charged with Military Recruitment FraudRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Travis Devall (47, Tampa) with a conspiracy to commit and the commission of wire fraud, theft of government property and funds, and aggravated identity theft. If convicted, he faces a maximum penalty of 5 years in prison for the conspiracy count, and 20 years’ imprisonment for each wire fraud count. The theft of government property charge carries a maximum penalty of 10 years in prison. He faces a mandatory term of 2 years’ imprisonment for the aggravated identity theft charge. The indictment also notifies Devall that the United States intends to seek a money judgment of approximately $78,000, the proceeds of the charged criminal conduct.
According to the indictment, Devall served for a number of years as a Recruitment Assistant (“RA”) under the Guard Recruiting Assistance Program (“GRAP”). The indictment alleges that, from in or about September 2006 and continuing to at least July 2010, Devall falsely reported that he had obtained the recruitment of numerous recruits into the United States Army National Guard when, in truth and in fact, he had not carried out the tasks which he reported to the Department of Defense in that recruitment process. As a result of the false statements made by Devall, he earned substantial bonus payments for the enlistment of those recruits into the United States Army National Guard.
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 United States Army Criminal Identification Division. It will be prosecuted by Assistant United States Attorney Jay L. Hoffer.
Stafford Doctor Indicted for Allegedly Running Pill MillRead the Press Release
ALEXANDRIA, Va. – The former chief of medicine at Stafford Hospital was indicted by a federal grand jury today on 45 counts charging the defendant with operating a chronic pain management practice through which she illegally distributed a wide range of prescription drugs to over 100 patients.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Charles E. Jett, Stafford County Sheriff; and Colonel W. Steven Flaherty, Virginia State Police Superintendent, made the announcement.
Nibedita Mohanty, 56, of Stafford, Virginia, was indicted on one count of participating in a drug trafficking conspiracy to distribute and dispense controlled substances; one count of distributing and dispensing a controlled substance resulting in the death of a patient; two counts of distributing and dispensing controlled substances resulting in serious bodily injury (nonfatal overdoses); thirty-eight counts of distributing and dispensing controlled substances; two counts of aiding and abetting health care fraud; and one count of aiding and abetting money laundering.
Mohanty faces a mandatory minimum sentence of twenty years in prison, and a maximum penalty of life imprisonment and a $10 million fine, if she is convicted of the major drug trafficking charge relating to the death of a patient after consuming oxycodone.
According to the indictment, Mohanty was a physician and served as the Chief of Medicine at Stafford Hospital from June 2009 to February 2013. Starting in 2008, Mohanty represented herself as a chronic pain management doctor and treated over 100 patients. In April 2013, the Virginia Board of Medicine suspended Mohanty’s medical license, and in September 2013, Mohanty surrendered her license for a period of three years.
According to court records, Mohanty distributed controlled substances, often for excessive dosages, to patients outside the bounds of professional practice and with no legitimate medical purpose, in exchange for cash sums paid by these patients for visits. Mohanty also issued a number of prescriptions for controlled substances—such as oxycodone, fentanyl and morphine—despite knowing that her patients were abusing, misusing, distributing or selling the controlled substances.
In May 2011, for example, Mohanty prescribed 760 oxycodone 30 mg tablets, 120 OxyContin 80 mg tablets and 120 Dilaudid 8 mg tablets to a single patient, identified as V.W. in the indictment. On June 1, 2011, V.W. consumed a portion of the oxycodone dispensed by Mohanty, allegedly causing V.W.’s death. In addition, as a result of Mohanty’s prescriptions, other patients allegedly suffered serious bodily injury through nonfatal overdoses.
The indictment further alleges that Mohanty prescribed medications containing buprenorphine, a Schedule III controlled substance, for substance abuse and withdrawal, even though she did not have the requisite DEA license to do so. In addition, Mohanty wrote prescriptions knowing that patients would attempt to fill the prescriptions using their health insurance, thereby causing fraudulent claims to be submitted to the patients’ insurance companies.
As alleged in the indictment, Mohanty received cash payments from her patients, and she used those payments to support a lavish lifestyle and maintain a large home, which included a swimming pool, for which she paid $32,000 cash in numerous denominations stuffed in envelopes.
This case was initiated and investigated by the Stafford County Sheriff’s Office and assisted by the FBI’s Richmond and Washington Field Offices and the Virginia State Police. Assistant U.S. Attorney Gene Rossi and Special Assistant U.S. Attorneys Jennifer Ballantyne and Nicole Grosnoff are prosecuting the case.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
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-256.
Springfield Businessman Indicted for Bankruptcy Fraud in addition to $3.3 Million Fraud SchemesRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., businessman has been indicted by a federal grand jury for additional bankruptcy fraud, after being indicted last year for a series of bank fraud and wire fraud schemes that totaled more than $3.3 million in losses.
Richard Thomas Gregg, 59, of Springfield, was charged in a 25-count indictment returned by a federal grand jury on Wednesday, July 24, 2014. This superseding indictment replaces the original indictment returned on Feb. 28, 2013, and adds eight additional counts of bankruptcy fraud.
Gregg is charged with four counts of bank fraud, 10 counts of money laundering, two counts of wire fraud and nine counts of bankruptcy fraud.
Gregg was the principal shareholder and director of Southwest Community Bank in Springfield, which failed in May 2010. He and his wife were majority shareholders in Glasgow Savings Bank in Glasgow, Mo., which failed in 2012. Prior to Glasgow Savings Bank’s failure, it was one of the oldest operating banks west of the Mississippi River. Gregg was also a real estate developer, an investor and a licensed insurance agent for the Shelter Mutual Insurance Company. Gregg had ownership interest in and controlled a number of business entities.
More Than $180 Million in Debt
According to the indictment, Gregg and his business entities accumulated substantial debt. On the May 14, 2013, statement of financial affairs Gregg filed in his personal bankruptcy case, he reported owning assets valued at $145,030,779 and total debts of $325,512,798, reflecting a deficiency of $180,482,019. As of Feb. 28, 2013, the indictment says, approximately $14.6 million of the known debt attributable to Gregg and his business entities had been “charged off” by the creditor financial institutions, meaning they had defaulted and the financial institution had “written off” part or all of the loan because it determined the debt was not collectable.
Bankruptcy Fraud
Gregg was a managing member of and decision maker for 1717 Market Place, LLC. He was also designated as the tax matter partner for 1717 Market Place and provided the information to accountants who prepared tax returns for 1717 Market Place. On July 17, 2012, 1717 Market Place filed a Chapter 11 voluntary bankruptcy petition, which was dismissed on March 12, 2013.
Gregg was charged in the original indictment with one count of bankruptcy fraud. On Aug. 14, 2012, Gregg allegedly made false declarations by submitting false Schedules of Assets and Liabilities and a false Statement of Financial Affairs (SOFA) in his bankruptcy proceedings. Gregg stated that the bankruptcy debtor, 1717 Marketplace, LLC, owed him $868,000 for a “personal loan,” and owed another person $801,000 for a “personal loan.” In fact, as Gregg knew, neither he nor the other person had lent 1717 Marketplace, LLC funds in those amounts.
Four of the additional eight counts of bankruptcy fraud also relate to the false statements made by Gregg in the same bankruptcy proceedings.
In submitting the company’s schedules and SOFA, Gregg allegedly omitted any reference to substantial amounts (in excess of $9 million) that he and others owed to 1717 Marketplace. He also allegedly omitted any reference to the company’s payments, totaling approximately $151,000, to himself and another person within the year immediately preceding the date of the bankruptcy filing. Gregg allegedly omitted any reference to his transfer by warranty deed of his interest in two parcels of real estate, a 97.2-acre tract and a 6.4-acre tract, both in Nixa, Mo.
Four of the additional counts of bankruptcy fraud relate to the allegedly fraudulent transfer of property in Gregg’s personal bankruptcy case, which he filed after having been indicted last year for, among other crimes, bankruptcy fraud.
The indictment alleges that Gregg, in contemplation of his bankruptcy case and with the intent to defeat the provisions of Title 11, transferred his interest in two parcels of real estate, the 97.2-acre tract and the 6.4-acre tract in Nixa. The indictment also alleges that Gregg, with the intent to defeat the provisions of Title 11, fraudulently transferred property of the bankruptcy estate when he filed a document with the Christian County Recorder of Deeds that purported to place $250 million in liens on the real and personal property of Gregg and the entities he owned and controlled.
The indictment also alleges that Gregg, with the intent to defeat the provisions of Title 11, fraudulently transferred property of the bankruptcy estate when he signed an offer that purported to place liens on the real and personal property of Gregg and the entities he owned and controlled. On May 24, 2013, after his personal Chapter 11 bankruptcy case was converted to Chapter 7 and a trustee was appointed, Gregg accepted an offer on behalf of FRS, LLC, and 1717 Market Place, of $40 million “in the form of Property Tax Abatement based on a certain lien recording against this subject property.” According to the indictment, however, Gregg’s interests in those companies and in his personal property had become the property of the bankruptcy estate upon the commencement of his personal case on March 19, 2013.
The remaining charges contained in the superseding indictment remain unchanged from the original indictment.
Fremont Property
The federal indictment alleges that Gregg engaged in a scheme to defraud Southwest Community Bank in 2008. As a part of this bank fraud scheme, the indictment says, Gregg sold the bank a piece of commercial real estate at 2814 S. Fremont in Springfield for $1,551,944. Gregg allegedly knew that amount was significantly above fair market value.
Gregg, who was Southwest Community Bank’s principal shareholder and was on its Board of Directors, did not disclose to the bank that he had purchased that property for $775,000 a few months earlier, the indictment says, nor did he disclose to the bank that two appraisals had been conducted on the property in recent months. One appraisal valued the property at $762,000. The second appraisal was cancelled when Gregg disagreed with the preliminary work. After Gregg cancelled the appraisal, the indictment says, his son (who worked at Southwest Community Bank) ordered an appraisal of the Fremont property by another appraiser, who valued the property at $1,580,000. Gregg allegedly did not disclose to the bank that this appraisal was not an independent valuation of the property, but rather was something Gregg had, in essence, directed.
The indictment charges Gregg with four counts of money laundering related to this bank fraud scheme.
Stock Shares
In February 2009 Gregg borrowed $2 million from Great Southern Bank, using 160,000 shares of stock for First Bancshares, Inc. (FBSI), the holding company for First Homes Savings Bank, as collateral. Gregg physically deposited the stock certificate with Great Southern Bank.
According to the indictment, on May 6, 2009, with a $1.5 million balance remaining on the loan from Great Southern Bank, Gregg checked out the original FBSI stock certificate from Great Southern Bank, using as a pretext the stated purpose of separating the large certificate into multiple smaller certificates. He signed a trust receipt promising to return to the certificate to the bank within 30 days. Instead, the indictment says, Gregg deposited the collateralized FBSI shares into his account at Scottrade, a privately-owned retail brokerage firm located in St. Louis, Mo. On May 28, 2009, Gregg allegedly borrowed $440,000 from Scottrade, from the margin account on which the defendant used the FBSI stock as collateral. Gregg chose not to return the FBSI certificate or any proceeds he received to Great Southern Bank, according to the indictment, and instead used the funds for other purposes.
Collectible Cars
The federal indictment charges Gregg with two counts of bank fraud related to schemes to use collectible automobiles as collateral to obtain loans, then sell the automobiles without paying back the loans. In January and February 2010 Gregg allegedly executed separate but related schemes to defraud Great Southern Bank, Metropolitan National Bank and People’s Bank of the Ozarks. As a part of these schemes, the indictment says, Gregg sold seven collectible automobiles at the Barrett-Jackson Auto Auction in Scottsdale, Ariz. Five of the automobiles were encumbered at the three banks.
According to the indictment, Gregg borrowed $400,000 from Great Southern Bank in October 2007, which he secured with four collectible automobiles, including a 2006 Ford GT. Gregg consigned the 2006 Ford GT with the Barrett-Jackson Auto Auction in Scottsdale, Ariz., where on Jan. 23, 2010, the vehicle was sold at auction for approximately $150,000. Gregg allegedly chose to not return the proceeds of the sale of the Ford GT ($138,000 after deducting the auctioneer’s fee) to Great Southern Bank and instead used the funds for other purposes. When Gregg defaulted on the loan, Great Southern Bank realized a $129,644 loss.
According to the indictment, Gregg borrowed $400,000 from Metropolitan National Bank in 2005. He secured this loan with a “floor plan” financing, meaning the loan was a revolving line of credit made against specific pieces of collateral, in this case automobiles. When each vehicle on the floor plan was sold, the loan advanced against that piece of collateral was to be repaid. This loan was renewed in December 2009. In January 2010, the collateral included a 1971 Chevy Cheyenne Pickup. The portion of the loan’s balance collateralized by the 1971 Chevy Cheyenne Pickup was $17,221. Gregg also consigned the 1971 Chevy Cheyenne Pickup with the Barrett-Jackson Auto Auction, the indictment says, and it was sold for approximately $29,000. Gregg allegedly chose to not return the proceeds of the sale ($26,680 after deducting the auctioneer’s fees) to Metropolitan National Bank and instead used the funds for other purposes. When Gregg defaulted on the loan, Metropolitan National Bank realized a $17,221 loss.
The indictment charges Gregg with six counts of money laundering related to these bank fraud schemes.
Oklahoma Casinos
The federal indictment charges Gregg with two counts of wire fraud related to bounced checks at two Oklahoma casinos.
On Jan. 3,2012 Gregg allegedly presented five checks, payable to Buffalo Run Casino in Miami, Okla., each in the amount of $10,000. Gregg allegedly knew his credit union account contained insufficient funds to cover those checks.
Between Feb. 16 and March 1, 2012, Gregg allegedly presented five checks payable to Downstream Casino and Resort in Quapaw, Okla., in the total amount of $60,000. Gregg allegedly knew his bank account contained insufficient funds to cover those checks.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the FDIC Office of Inspector General and IRS-Criminal Investigation.Southern California Man Sentenced to 15 Years for Methamphetamine and Gun CrimesRead the Press Release
OAKLAND – Timathe Richard Soto was sentenced yesterday to 15 years in prison for possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm and ammunition, 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.
Soto pleaded guilty on May 7, 2014, to violation of 21 U.S.C. § 841(a)(1) and (b)(1)(A)(viii); 18 U.S.C. § 924(c)(1)(A)(i); and 18 U.S.C. § 922(g)(1). According to the plea agreement, Soto admitted that on March 1, 2013, he was pulled over off of I-580 in Oakland, and during a search of the vehicle, California Highway Patrol Officers discovered about three-quarters of a pound of methamphetamine and a Springfield Armory XD 9mm pistol, loaded with 9mm ammunition. Soto had been traveling from Orange County to Ukiah with the intent to distribute the methamphetamine to individuals in Ukiah in exchange for marijuana. Soto possessed the firearm and ammunition in order to protect the drugs and drug proceeds. Soto had previously been convicted of several crimes punishable by imprisonment for a term exceeding one year and was on Post-Release Community Supervision after having been released from state prison in 2012 for assault with a deadly weapon. Soto is a career offender under the federal Sentencing Guidelines, having previously committed more than two controlled substance offenses and crimes of violence.
Soto, age 51, of Orange County, was indicted by a federal grand jury on April 18, 2013.
The sentence was handed down by the Honorable Phyllis J. Hamilton, United States District Court Judge, following a guilty plea to all three counts in the Indictment. Judge Hamilton also sentenced the defendant to a five year period of supervised release. The defendant has been in continuous custody since his arrest.
The prosecution is the result of an investigation by the U.S. Department of Homeland Security, Homeland Security Investigations, and California Highway Patrol.
(Soto indictment )
Shreveport Attorney Sentenced to Federal PrisonRead the Press Release
Department of Justice
Office of Public AffairsSHREVEPORT, LA – A 52-year-old Shreveport, Louisiana attorney has been sentenced to federal prison in the Western District of Texas, announced U.S. Attorney John M. Bales of the Eastern District of Texas.
James Ward Davis pleaded guilty on Apr. 22, 2014 to a false statement in a bankruptcy proceeding and was sentenced to 60 months in federal prison today by U.S. District Judge Donald E. Walker. Davis was also ordered to pay restitution in the amount of $1 million and then immediately remanded into custody of the U.S. Marshals Service.
According to information presented in court, Davis, a lawyer and former member of the Shreveport law firm Jones, Odom, Davis & Politz, operated and controlled Tower Hill Energy Company, LLC, which purported to be in the business of acquiring oil, gas, and mineral leases, interests, and royalties in north Louisiana. In February 2009, Tower Hill entered into an agreement with a Texas company known as Furie Petroleum. By way of the agreement, Tower Hill was obligated to acquire mineral rights on Furie’s behalf. Furie agreed to deposit $1 million to be used by Tower Hill “solely for the acquisition of Mineral Leases or purchase contracts/options to acquire Mineral Leases.” A client trust account for Davis’s law firm was used for escrow. After Furie made the deposit, Davis transferred the $1 million out of the firm’s trust account into a Tower Hill escrow account and then used the funds to address personal and business expenditures. In June 2010,Davis and his wife filed for Chapter 7 bankruptcy in the Western District of Louisiana. They subsequently sought to convert the bankruptcy case from Chapter 7 to Chapter 11. A hearing was held on that motion in August 2010. During the proceeding, Davis falsely stated under oath that Furie was aware of the disposition of the $1million deposit after he removed the funds from the client trust account. In truth, at no time prior to litigation, did Davis advise Furie or its representatives that he had transferred the money out of the Tower Hill escrow account and used the funds for personal and unrelated business purposes.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Eastern District of Texas Assistant U.S. Attorney Frank Coan.
Shiprock Man Pleads Guilty to Federal Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Gerald A. Tso, 25, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pleaded guilty this afternoon to an aggravated sexual assault charge. Under the terms of his plea agreement, Tso will be sentenced to ten years in federal prison followed by a term of supervised release to be determined by the court. Tso will be required to register as a sex offender after he completes his prison sentence.
Tso was arrested on Feb. 26, 2014, on a criminal complaint charging him with aggravated sexual abuse of a child, and subsequently was indicted on that same charge on March 26, 2014. According to court filings, Tso sexually assaulted a seven-year-old Navajo child on Feb. 26, 2014, in Shiprock, which is located within the Navajo Indian Reservation.
Today, Tso pleaded guilty to a felony information charging him with aggravated sexual abuse. In entering his guilty plea, Tso admitted engaging in a sexual act with the child. Tso further admitted that the child was under the age of 12 years at the time he victimized the child.
Tso has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and is being prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Shipping Company Is Sentenced for Illegally Discharging Oily Waste at SeaRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Pacific and Atlantic (Shipmanagers), Inc. (“Pacific and Atlantic”), incorporated in the Marshall Islands with its main offices in Athens, Greece, was sentenced today to a $500,000 fine by United States District Court Judge Gregory M. Sleet for violating the Act To Prevent Pollution From Ships.
According to court documents and statements made in court, Pacific and Atlantic operated the M/V Bulk Victory, a 13,697 gross ton ocean-going cargo ship. On March 7, 2014, the U.S. Coast Guard boarded the vessel in the Delaware Bay Big Stone Anchorage to conduct an inspection. The inspection and subsequent criminal investigation revealed that from January through September 2013, the M/V Bulk Victory discharged overboard, in the open ocean, no less than 34 metric tons of oily bilge water and waste sludge.The Act To Prevent Pollution From Ships is a codification of international treaties known as the “MARPOL Protocol.” To insure that oily waste is properly stored and processed at sea, all ocean going ships entering U.S. ports must maintain an Oil Record Book in which all transfers and discharges of oily waste, regardless of the ship’s location in international waters, are fully recorded. During the Coast Guard boarding on March 7, 2014, crewmen presented the ship’s Oil Record Book, which did not record the relevant overboard discharges.
Pacific and Atlantic was ordered to pay the $500,000 fine immediately, and also placed on probation for three years, during which time the M/V Bulk Victory will be banned from calling on ports of the United States.
“The defendant violated environmental laws that protect our marine environment from harmful pollution,” said U.S. Attorney Oberly. “This conviction ensures that the defendant is held accountable with a criminal fine, as well as a three-year ban from United States ports. The message to the shipping industry is clear: environmental crimes at sea will not be tolerated.”
“I’m so proud of the work of the Coast Guard personnel, particularly those from MSD Lewes, Sector Delaware Bay, and the Coast Guard Investigative Service, who all put in long hours on this case. I’m grateful too, for the support of our District and Headquarters and that of DOJ and others that brought this matter to resolution so quickly,” said Captain Kathy Moore, Commander, Sector Delaware Bay.
This case was investigated by the U.S. Coast Guard Sector Delaware Bay, Coast Guard Marine Safety Detachment Lewes and the Coast Guard Investigative Service. The case was prosecuted by Trial Attorney Stephen Da Ponte in the Environmental Crimes Section of the Department of Justice and Assistant U.S. Attorney Edmond Falgowski from the U.S. Attorney’s Office for the District of Delaware.
Sacramento County Residents Indicted for Tax Refund Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an eight-count indictment today against Sergey Shchirskiy, 38, of Carmichael, and Vladislav Atamanyuk, 27, of Rancho Cordova, charging them with conspiracy to defraud the United States and aggravated identity theft, United States Attorney Benjamin B. Wagner announced.
According to court documents, the defendants conspired to file multiple fraudulent tax returns using other people’s identities. The returns falsely claimed refunds based on fraudulently reported income and the Earned Income Tax Credit. The defendants caused the fraudulent refunds to be directly deposited into bank accounts that they controlled.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Michele Beckwith is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 10 years in prison for the conspiracy, and a mandatory two years in prison for identity theft, as well as a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Roswell Man Pleads Guilty to Misdemeanor Charge for Assaulting a Federal OfficerRead the Press Release
ALBUQUERQUE – Eddie J. Vallejos, 55, of Roswell, N.M., entered a guilty plea this morning in federal court in Las Cruces, N.M., to a misdemeanor assault on a federal officer charge.
Vallejos was arrested in June 2013, on a criminal complaint alleging that he assaulted an officer of the Federal Protective Service who was on duty at the Joe Skeen Federal Building and U.S. Court House in Roswell. Vallejos subsequently was indicted and charged with a misdemeanor assault on a federal officer charge.
According to the criminal complaint, Vallejos assaulted the officer on June 4, 2013, after the officer sought to question Vallejos about a bag which appeared to contain illegal drugs that fell from Vallejos’ pocket as he emptied his pockets before walking through the security gate at the courthouse. While attempting to flee from the officer, Vallejos physically assaulted the officer by elbowing him in the chest and striking the officer with his knee so that the two men fell down. Vallejos then bit the officer’s hand and drew blood.
During today’s proceedings, Vallejos pled guilty to the indictment. Vallejos has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Vallejos faces a statutory maximum penalty of a year in prison.
The case was investigated by the Federal Protective Service of the U.S. Department of Homeland Security and is being prosecuted by Assistant U.S. Attorney Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office.
Rochester Man Sentenced on Bank and Loan Fraud ChargesRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that, Richard Kaufman, of Pittsford, N.Y., who was convicted following a federal jury trial of conspiracy to commit bank and loan fraud, as well as bank and loan fraud, was sentenced to a 46 months in prison and ordered to pay restitution in the amount of $1,360,893.72 by U.S. District Judge Frank P. Geraci.
Assistant U.S. Attorneys Craig R. Gestring and Bradley E. Tyler, who handled the trial of the case, stated that between 2002 and June 2008, the defendant, and his father Michael C. Kaufman, directed the Controller of American Industrial Sales, d/b/a RAK Industries, to provide false financial statements to Key Bank, and to the company’s outside accounting firm. The false financial statements significantly overvalued the accounts receivable and inventory, which were the two assets that Key Bank relied upon as collateral for a total loan credit of $2,000,000.
The loan proceeds were used by the defendants to fund their personal lifestyles including expensive homes, generous salaries and country club memberships. After the defendants defaulted on the Key Bank loan in the summer of 2007, they converted to their personal use approximately $53,000 of accounts receivable proceeds that were the property of Key Bank. As a result of the fraud scheme, Key Bank suffered an immediate loss of over $1.5 million.
Michael Kaufman was also convicted at trial and is awaiting sentencing.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The conviction was the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, and Postal Inspectors with the United States Postal Inspection Service under the direction of Shelly A. Binkowski, Postal Inspector in Charge, Boston Division.Rapid City Woman and Wanblee Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, woman and a Wanblee, South Dakota, man convicted of Conspiracy to Distribute Methamphetamine have been sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Rani Bear Heels, age 24, was sentenced on July 18, 2014, to 41 months in custody, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Dana Provincial, age 36, was sentenced on July 21, 2014, to 16 months in custody, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Bear Heels was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on December 17, 2013, and she pled guilty on April 11, 2014.
Provincial was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on November 19, 2013, and he pled guilty on March 20, 2014.
From August 2009 through 2013, Bear Heels and Provincial received and conspired to distribute methamphetamine from individuals, including Angel Provincial, Shy Bettelyoun, Clinton Provincial, Robert Provincial, and Diana Bald Eagle, around the Pine Ridge Indian Reservation in South Dakota.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, the Federal Bureau of Investigation, the Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
Bear Heels and Provincial were immediately turned over to the custody of the U.S. Marshals Service.
Postal Service Employee Admits to Stealing and Embezzling over 20,000 Pieces of MailRead the Press Release
Baltimore, Maryland – Jeffrey L. Shipley, age 47, of Millersville, Maryland pleaded guilty today to stealing and destroying mail while employed as a postal employee.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; and Special Agent in Charge Paul Bowman of the U.S. Postal Service, Office of Inspector General.
According to his plea agreement, Shipley worked as a postal service carrier beginning in 1993. From about 2005 to March 10, 2014, Shipley stole and embezzled mail. Shipley was a letter carrier at the Brooklyn Carrier Annex from 1994 to January 2007, at the Parkville Branch until August 2007 and at the Catonsville Carrier Annex from August 4, 2007 to the present.Shipley embezzled mail that he was entrusted to deliver on his assigned route. He also stole mail directly from the Catonsville Carrier Annex that was not part of his assigned route. Shipley also took Postal Service property, including stools, mail bags, signs and a mirror, valued at over $500.
Agents executed a search warrant at Shipley’s residence on March 10, 2014 and at a storage facility that he rented in Glen Burnie on April 18, 2014. Agents seized 20,413 pieces of mail, including gift cards and credit cards. Agents also seized 55 gift cards and 15 credit cards which were located separately from the stolen and embezzled mail, along with prescription bottles of medicine, checks, passports, a U.S. citizenship and immigration card, jewelry, clothes, books, a Nook, sunglasses and other items.
The total loss resulting from the scheme is over $10,000 and involved over 250 victims.
Shipley faces a maximum sentence of five years in prison for theft of mail by a Postal employee and for destruction of mail by a Postal employee, and a $250,000 fine. Shipley has agreed to terminate his employment with the Postal Service and pay restitution of at least $10,000. U.S. District Judge Ellen L. Hollander scheduled sentencing for January 23, 2015 at 10:30 a.m.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Service - OIG for its work in the investigation and thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.Ponzi Scheme Operator Pleads Guilty to Securities FraudRead the Press Release
Defendant Spent Nearly $1.2 Million Of Investors’ Funds On Personal Expenses
CHARLOTTE, N.C. – Claude Darrell McDougal, 55, formerly of Charlotte, appeared before U.S. Magistrate Judge David S. Cayer today and pleaded guilty to securities fraud for orchestrating a Ponzi scheme that defrauded his investor victims of over $2.5 million dollars, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
North Carolina Secretary of State Elaine F. Marshall and John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division join U.S. Attorney Tompkins in making today’s announcement.
According to court documents and today’s plea hearing, from 2006 to 2010 McDougal induced over 25 investors in Charlotte and elsewhere to invest more than $2.5 million, by promising his victims their money would be invested in securities, in the form of promissory notes offered by US Financial Alliance Consultants, LLC (Financial Alliance). McDougal created Charlotte-based Financial Alliance in 2005, but his company was never registered as a dealer of securities in North Carolina or elsewhere, court records reflect. Also, according to court records, McDougal was not registered to sell securities in North Carolina or in any other state, following termination from his previous employer in August 2009.
According to court documents, McDougal induced his victims to invest with Financial Alliance by “guaranteeing” fixed rates of return between 6% and 15% annually. Court records show that often McDougal’s victims were elderly and the funds they invested – and McDougal squandered – were most, if not all, of their life savings. During the course of the fraud, McDougal invested only $580,000 of the victims’ money and used approximately $450,000 to pay some victims supposed “payouts” from profits made on investments. However, court records show that these payments were not based on profits, but came from funds contributed by new investors, commonly referred to as “Ponzi” payments.
Today, McDougal admitted in court that he used approximately $1.19 million of the investors’ funds to support his own lifestyle, including to buy dinners, jewelry and electronics, and to pay for hotel stays, furniture and other business-related expenses.
McDougal has been released on bond. At sentencing, he faces a maximum of 20 years in prison for the securities fraud offense a fine of $5,000,000. A sentencing date has not been set.
The case was investigated by the North Carolina Secretary of State, Securities Division, with assistance from the FBI, Charlotte Division.
The prosecution is being handled by Special Assistant United States Attorney Kevin M. Harrington and Assistant U.S. Attorney Kurt W. Meyers of the Western District of North Carolina.
Mr. Harrington is an Enforcement Attorney with the North Carolina Department of Secretary of State, Securities Division, and was appointed to serve as a Special Assistant United States Attorney (SAUSA) with the U.S. Attorney’s Office in Charlotte in September 2011. The SAUSA position reflects the partnership between the North Carolina Securities Division and the United States Attorney that helps ensure the effective and vigorous prosecution of white collar criminals, particularly in the area of securities fraud.
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.
Pittsburgh Man Sentenced to 140 MonthsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WV – A Pittsburgh, Pennsylvania, man was sentenced for his role in a conspiracy to distribute more than 100 grams of heroin in the Wetzel County area, by Chief Judge John Preston Bailey.
United States Attorney William J. Ihlenfeld, II, announced that Damon Rashad Reese, also known as “Mac”, age 26, was sentenced to 140 months in prison and four years of supervised release. The Court also ordered the forfeiture of $8,674 in U.S. currency and a 2002 Lexus which constitute proceeds from the illegal activity. Reese was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Assistant United States Attorney Randolph J. Bernard and investigated by the West Virginia State Police - Bureau of Criminal Investigations.
In other court proceedings before Judge Bailey, Ihlenfeld announced that James Nathan Barcus, age 38, of Wheeling was sentenced to 12 months and 1 day in prison and three years of supervised release for conspiracy to distribute Schedule I and Schedule II controlled substances from December of 2011 until May 18, 2012, in the Wheeling area. Barcus, who is free on bond, will self-report to the designated Federal institution on September 11, 2014. Assistant United States Attorney Randolph J. Bernard was the lead prosecutor and was assisted by Ihlenfeld. The matter was investigated by the Ohio Valley Drug Task Force, which includes officers and agents from the Wheeling Police Department, the Ohio County Sheriff’s Department, the West Virginia State Police, and the Drug Enforcement Administration. Substantial assistance was provided by the Hancock-Brooke -Weirton Drug Task Force, which includes Weirton Police Officers, Hancock County Sheriff’s Deputies, and DEA Agents. Assistance was also provided by the Pennsylvania State Police.
Amanda Barker, age 25, of Moundsville, West Virginia, was sentenced to 6 months in prison and six years of supervised release for the distribution of alprazolam near a protected location in Marshall County in 2012. Barker was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Assistant United States Attorney Robert H. McWilliams, Jr. and investigated by the Marshall County Drug Task Force, consisting of officers and agents from the Moundsville Police Department, the Marshall County Sheriff’s Department, and the Drug Enforcement Administration. The task force receives federal funding from the Appalachia High Intensity Drug Trafficking Area (AHIDTA) initiative.
Pine Ridge Man Sentenced for LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, man convicted of Larceny was sentenced on July 22, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
George Ecoffey, a/k/a Richard Daniel Ecoffey, age 52, was sentenced to 3 years of probation, a $100 special assessment to the Federal Crime Victims Fund, and restitution in the amount of $2,200.
Ecoffey was indicted for Larceny by a federal grand jury on February 19, 2014. He pled guilty on March 28, 2014.
The charge related to Ecoffey and another man shooting a pregnant cow and killing it on February 9, 2013, near Manderson.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Pill Mill Doctor Sentenced to 20 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington today sentenced Ronald John Heromin (58, Brandon) to 20 years in federal prison for conspiracy to distribute and dispense Oxycodone and Alprazolam not for legitimate medical purposes and not in the usual course of professional practice. The Court also ordered Heromin to forfeit his Florida Medical License; his DEA Registration to prescribe controlled substances; $25,437.00 in U.S. currency; and monthly disability payments, totaling approximately $15,000.00 per month, during the period of his incarceration, as a substitute asset for his money judgment, which the Court entered in the amount of $1,952,563.00, representing the amount of proceeds the defendant obtained as a result of his participation in the conspiracy. Heromin was found guilty by a federal jury on April 17, 2014.
According to evidence presented at trial, from late 2009 through October of 2011, Heromin was the prescribing physician at several pain management clinics in the Tampa Bay and Miami areas, including Gulfshore Pain Management on Habana Avenue, the Tampa Bay Medical Center on Himes Avenue, and the Tampa Bay Wellness Centre on Martin Luther King Blvd., in Tampa; and the Hope for Life Wellness Center in Miami and the St. Mary’s Medical Institute in Hialeh, Florida. During that time, Heromin issued thousands of prescriptions for very large doses of Oxycontin, Oxydondone and Alprazolam to drug addicts and members of doctor shopping organizations who often traveled hundreds of miles from as far away as Ohio, Kentucky and Tennessee to get prescriptions for these highly addictive opiate pain medications. Over 500,000 Oxycodone pills and 230,000 Alprazolam pills prescribed by Heromin during that time were filled at a single pharmacy, the VIP Pharmacy on Martin Luther King Blvd., in Tampa.
Owners and operators of the Tampa Bay Wellness Centre and the VIP Pharmacy have previously been convicted of federal conspiracy and money laundering charges.
This case was investigated by a Joint Task Force including the Drug Enforcement Administration, the Tampa Police Department, the Pasco County Sheriff's Office, the Pinellas County Sheriff's Office, the Manatee County Sheriff’s Office, the Lakeland Police Department, and the Franklin County Sherriff’s Office in Columbus, Ohio. It was prosecuted by Assistant United States Attorneys Kathy J.M. Peluso.
Philadelphia Man Charged in Four Bank RobberiesRead the Press Release
Daniel Connelly, 28, of Philadelphia, PA, was charged today by indictment with committing four bank robberies, announced United States Attorney Zane David Memeger. The indictment alleges that on June 14, 2014, Connelly robbed the 3rd Federal Bank, at 2601 Orthodox Street, in Philadelphia, and stole $1,625; on June 19, 2014, he robbed the Republic Bank, at 7300 Frankford Avenue, in Philadelphia, and stole $940; on June 24, 2014, he attempted to rob Viriva Community Credit Union, at 7346 Frankford Avenue, in Philadelphia; and on June 24, 2014, Connelly robbed the Wells Fargo Bank, at 9101 Roosevelt Boulevard, in Philadelphia, and stole $830.
If convicted, the defendant faces a maximum possible sentence of 80 years of imprisonment.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Sarah L. Grieb.
Click here to view the indictment
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Palm Beach County Brothers and Company Sentenced in $4 Million “Cash Back” Food Stamp Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, Karen Citizen-Wilcox, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General (USDA-OIG), Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Ryan P. Lynch, Acting Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), announce that Ali Jaber, 52, and his brother, Hadi Jaber, 42, both of Greenacres, and Jaber Enterprises, Inc., doing business as Fajita’s Meat and Fish Market (Fajita’s), located in Palm Springs, were sentenced today before U.S. Judge Donald M. Middlebrooks. Ali and Habi Jaber were each sentenced to 70 months in prison, to be followed by three years of supervised release. Both defendants agreed to pay $4 million, jointly and severally, as restitution to the United States Department of Agriculture. The corporation, Jaber Enterprises, Inc., was sentenced to five years of organizational probation and $4 million in restitution.
All three defendants previously pled guilty to one count of conspiracy, in violation of Title 18, United States Code, Section 371. Defendants Ali and Hadi Jaber also each pled guilty to one count of bankruptcy fraud, in violation of Title 18, United States Code, Section 152, and one count of engaging in a monetary transaction in criminally derived property, in violation of Title 18, United States Code, Section 1957.
According to court documents, from October 2006 through their arrest in December 2013, Ali and Hadi Jaber operated a grocery store known as Fajita's. Fajita’s was an authorized retailer for the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program. SNAP is a program that affords low and middle income households the opportunity to achieve a more nutritious diet by increasing their ability to purchase food. Eligible foods include any food or food product intended to be prepared and eaten at home, such as breads and cereals, fruits and vegetables, meat, fish and poultry, and dairy products. USDA rules specifically prohibit the exchange of SNAP benefits for cash. SNAP recipients collect their benefits through Electronic Benefit Transfer (EBT) cards which operate like debit cards. On a monthly basis, each EBT card is credited with a dollar amount to be used for the purchase of eligible food items.
Between October 2006, when they purchased Fajita’s, and their arrest in December 2013, Ali and Hadi Jaber unlawfully provided certain SNAP recipients cash in exchange for their SNAP benefits. The defendants charged a substantial fee to the SNAP recipient’s EBT card for the cash exchange. In some cases, the fee was as much as approximately 30% to 50% of the amount of the SNAP benefits redeemed.
From January 1, 2009 through April 30, 2013, over $6 million in SNAP proceeds were redeemed by Fajita's. The defendants admitted that between $2.8 and $6 million of the proceeds were fraudulent.
Defendants Ali and Hadi Jaber admitted to withdrawing over $1.8 million in cash from the scheme. In addition, Ali Jaber admitted wiring approximately $179,000 in fraud proceeds to an account in his name in Beirut, Lebanon, and over $400,000 in fraudulent proceeds was wired to various entities and individuals in Lebanon and Canada.
Hadi and Ali Jaber also admitted that approximately $220,000 from the Jaber Enterprises, Inc. accounts was used to purchase a single family home in Greenacres. Though titled in the name of Jaber Enterprises, Inc., the home was the residence of Hadi Jaber and his family.
Ali and Hadi Jaber also admitted to bankruptcy fraud. Ali Jaber admitted that he did not disclose his Beirut account in his bankruptcy filings, and defendant Hadi Jaber admitted he did not disclose his interest in Fajita’s in his filings.
Previously, defendant Daniel Velazquez, a/k/a Diego Antonio Simone, 33, of Greenacres, pled guilty to one count of theft of government funds, in violation of Title 18, United States Code, Section 641, and was sentenced to five months in prison. Velazquez was a long-time clerk at Fajita’s who participated in the fraud.
Mr. Ferrer commended the investigative efforts of USDA-OIG, IRS-CI, HHS-OIG and PBSO. This case was prosecuted by Assistant U.S. Attorneys Carolyn Bell and Adam McMichael.
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.
Owner and Administrator of Miami Home Health Companies Pleads Guilty for Role in $74 Million Health Care Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Leslie R. Caldwell, Assistant Attorney General, Criminal Division Department of Justice, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office and Ryan Lynch, Acting Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami announced that Elsa Ruiz, 45, of Miami pled guilty yesterday, for her participation in a $74 million Medicare fraud scheme, before U.S. District Judge Marcia G. Cooke to one count of conspiracy to commit health care fraud. Her sentencing is scheduled for October 8, 2014.
According to court documents, Ruiz was an owner of Professional Home Care Solutions Inc. (Professional Home Care) and an administrator of LTC Professional Consultants Inc. (LTC), Miami home health care agencies that purported to provide home health and therapy services to Medicare beneficiaries. Ruiz and her co-conspirators operated LTC and Professional Home Care for the purpose of billing the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
Also according to court documents, Ruiz ran and oversaw the schemes operating out of LTC and Professional Home Care. Ruiz and co-conspirators paid kickbacks and bribes to patient recruiters, who provided patients to LTC and Professional Home Care, as well as prescriptions, plans of care (POCs) and certifications for medically unnecessary therapy and home health services for Medicare beneficiaries. Ruiz and her co-conspirators used these prescriptions, POCs and medical certifications to fraudulently bill the Medicare program for unnecessary home health care and therapy services.
From approximately January 2006 to June 2012, LTC and Professional Home Care submitted approximately $74 million in claims for home health care services that were not medically necessary and/or not provided, and Medicare paid approximately $45 million on those claims.
Mr. Ferrer commended the outstanding investigative efforts of the FBI and HHS-OIG. The case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Department of Justice’s Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers. To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
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.
Operators of "Big Blue" Cock Fighting Pit in McDowell, Kentucky, Plead GuiltyRead the Press Release
ABINGDON, VIRGINIA – United States Attorney Timothy Heaphy and Virginia Attorney General Mark R. Herring announced that three individuals pled guilty in United States District Court for the Western District of Virginia in Abingdon, who previously had been arrested on warrants executed during a joint federal/state multi-agency operation in Virginia and Kentucky on May 3, 2014. United States District Judge James P. Jones accepted the guilty pleas of the following individuals:
Walter Dale Stumbo, 51, and his son, Joshua Dale Stumbo, 25, of Floyd County, Kentucky, (“Stumbos”) each pled guilty to one count of conspiring to (a) operate an illegal gambling enterprise and (b) illegally conduct cock fights; five counts of transporting fighting roosters across state lines; and five counts of transporting bird fighting knives across state lines. They pled guilty without the benefit of a plea agreement and face up to fifty-years in prison and a fine of up to $2.75 million. Joshua Dale Stumbo is scheduled to be sentenced on October 14, 2014. Walter Dale Stumbo is scheduled to be sentenced on October 9, 2014.
Jonathan Robinson, 33, of Wise County, Virginia, pled guilty to one count of conspiring to (a) operate an illegal gambling enterprise and (b) illegally conduct cock fights; one count of transporting fighting roosters across state lines; one count of transporting bird fighting knives across state lines; and one count of illegally distributing oxycodone. He pled guilty pursuant to a plea agreement and faces up to 35 years in prison and a fine of up to $1.75 million. He is scheduled to be sentenced on October 8, 2014.
Wesley Dean Robinson, 57, of Wise County, Virginia, and father of Jonathan Robinson previously pled guilty on June 16, 2014, to to one count of conspiring to (a) operate an illegal gambling enterprise and (b) illegally conduct cock fights; one count of transporting fighting roosters across state lines; one count of transporting bird fighting knives across state lines; and one count of illegally distributing oxycodone. He also pled guilty pursuant to a plea agreement and faces up to 15 years in prison and a fine of up to $750,000. He is scheduled to be sentenced on August 27, 2014.
United States Attorney Heaphy praised the law enforcement officers who conducted the undercover operation. “The cruel and inhumane practice of cockfighting has no place in a civilized society and is against federal law. The outstanding work of the state and federal agents who investigated this case made it possible to bring these operators of a major cockfighting pit to justice. We will vigorously investigate and prosecute individuals who attend, facilitate, or profit from the misery inflicted on animals during these barbaric fights.”
The successful prosecution was the result of a joint undercover operation by Virginia and federal authorities. Evidence proffered to the court today showed that the Stumbos, Robinsons and others conspired to have cock fights at the Big Blue Sportsmen’s Club “Big Blue” in McDowell, Kentucky, and organized a large scale and comprehensive cock fighting location at Big Blue, which included collecting “parking” fees from spectators, entrance fees from handlers and offering for sale such services as antibiotics for fighting birds, a full-service restaurant for spectators, and fighting gaffes for fighting cocks. The Robinsons transported birds and fighting gaffes from Wise County, Virginia, to Big Blue. On fight weekends at Big Blue, spectators and handlers traveled from Virginia, North Carolina, South Carolina, Michigan, Ohio, West Virginia, Maryland, Georgia and other states. Spectators and participants were only allowed entry if they held a valid membership card. Each person was charged a one-time fee of $20 for the membership card. In addition, each person was charged a $20 “parking fee.” Big Blue had approximately 5,000 members. Entrance fees for the fights at Big Blue typically were $250 per entry with approximately 40 to 80 total entries per derby. Investigators executed search warrants on May 3, 2013, the second day of a two day derby billed as the “World Championship.” Entrance fees for the “World Championship” were $2,500. Officers seized over $90,000 in cash at the Stumbos’ home. While fights were taking place and after spectators had arrived, Dale Stumbo caused a bulldozer to be placed on the entrance road to the pit. The bulldozer remained in place until the fights concluded.
The trial of Sonya Stumbo, 51, of Floyd County, Kentucky, is scheduled to begin August 4, 2014, in United States District Court in Abingdon. Ms. Stumbo is entitled to a fair trial and is presumed innocent until proven guilty beyond a reasonable doubt.
Assistant United States Attorney Randy Ramseyer and Special Assistant United States Attorney and Virginia Assistant Attorney General Michelle Welch are prosecuting case on behalf of the United States. The case is being investigated by the United States Department of Agriculture – Office of Inspector General, the Virginia Alcohol Beverage Control Bureau of Law Enforcement, and the Spotsylvania County Sheriff’s Office. In addition, the following agencies assisted in the arrests or related proceedings: Virginia Animal Fighting Task Force; Virginia State Police Tactical Team; Southwest Virginia Regional Task Force; Botetourt County Commonwealth’s Attorney’s Office; Wise County, Virginia, Sheriff’s Office and Commonwealth’s Attorney’s Office; Virginia State Veterinarian’s Office; United States Homeland Security Investigations; Kentucky State Police; the United States Attorney’s Office for the Eastern District of Kentucky; and the American Society for the Prevention of Cruelty to Animals.
Nicolls Fire Investigation Leads to Charges for Marijuana CultivatorRead the Press Release
FRESNO, Calif. — A federal grand jury returned a five-count indictment today against Edgardo Fournier, aka Edgardo Fournier-Nigaglioni, 45, of Perris, charging him with conspiring to manufacture, distribute, and possess with intent to distribute marijuana, manufacturing marijuana, possessing marijuana with intent to distribute, damaging public land and natural resources, and setting timber afire, announced United States Attorney Benjamin B. Wagner and Forest Service Special Agent in Charge of the Pacific Southwest Region Scott Harris.
According to court documents, on July 11, 2014, Fournier was involved in the cultivation of 2,090 of marijuana plants in the Smith Canyon area of the Sequoia National Forest. He started several fires while leaving the marijuana cultivation site. The fire, which became known as the Nicolls Fire, was located in the Scodie Mountains, within the federally designated Kiavah Wilderness Area. The fire damaged about 1,680 acres of public land and will cost taxpayers millions of dollars.
When Forest Service agents went to the cultivation site, they eradicated 2,090 marijuana plants and seized rounds of ammunition. The marijuana cultivation operation caused significant damage to the land and natural resources of the forest.
This case was the product of an investigation by the U.S. Forest Service, United States Bureau of Land Management, and Kern County Sheriff’s Office. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Fournier is in custody as a flight risk and danger to the community and is scheduled for arraignment on July 28, 2014.
If convicted of the drug offenses, Fournier faces a statutory penalty of 10 years to life in prison and a $10 million fine. For damaging public lands and resources, Fournier faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. For causing the Nicolls Fire, Fournier faces a maximum statutory penalty of five years in prison and a fine of $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Newport News Man Sentenced for Participating in Drug ConspiracyRead the Press Release
NEWPORT NEWS, Va. – Salvatore Lopiccolo, age 35 of Newport News, Virginia, was sentenced today to 57 months in prison and three years of supervised release for his participation in a drug conspiracy.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Lopiccolo was indicted by a federal grand jury on November 14, 2013, and on April 21, 2014, he pleaded guilty to conspiracy to distribute analogues, cocaine, cocaine base, methylone, marijuana, psilocybin and drug paraphernalia.
In a statement of facts filed with his plea agreement, the defendant admitted he conspired with others to distribute and possess with intent to distribute a variety of drugs and drug analogues from Bonsai Pipe and Tobacco. Multiple controlled purchases of cocaine, crack cocaine, marijuana, methylone, psilocybin, drug analogues and drug paraphernalia were made from Bonsai, the defendant, and Bonsai employees.
This case was investigated by Homeland Security Investigations, the Internal Revenue Service – Criminal Investigations, the U.S. Postal Inspection Service, the Virginia State Police Tri-Rivers and Peninsula Task Forces the U.S. Air Force Office of Special Investigations and the York-Poquoson County Sheriff’s Office. Assistant U.S. Attorney Eric M. Hurt is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Navajo Man Sentenced to 59 Years in Prison for MurderRead the Press Release
PHOENIX – On July 22, 2014, Branden Pete, 28, of Greasewood, Ariz., was sentenced by Senior U.S. District Judge Stephen M. McNameeto 708 months (59 years) in prison. Pete was found guilty by a federal jury on Oct. 31, 2005 of murder in the second degree; murder during the commission of the crime of kidnaping; murder during the commission of the crime of aggravated sexual abuse and conspiracy to commit first degree murder.
The evidence at trial showed that on May 18, 2002, Branden Pete, Irvin Cepi, Harris James and Hoskie James, all members of the Navajo Nation, picked up the victim on the Navajo Reservation and drove her to a remote location where she was forcibly raped by then 16 year-old Branden Pete, Irvin Cepi, Harris James and Hoskie James. The victim was then driven to another remote location where she sustained fatal injuries to her head at the hands of both Irvin Cepi and Branden Pete.
Her body was not discovered until Aug. 26, 2002. An anonymous tip led authorities to these four who all confessed their involvement.
The defendant was originally sentenced to mandatory life imprisonment on April 17, 2006. However, in 2012 the United States Supreme Court in Miller v. Alabama, decided that juveniles should not face mandatory life sentences and that the courts should consider the infirmities of youth in determining their level of culpability. The defendant presented evidence of a dysfunctional upbringing and significant substance abuse issues. The Court took these into account but was shocked by the actions of the defendant in taking the life of another in such a brutal fashion. The court also noted that Pete had accumulated a significant number of disciplinary problems while serving his sentence in the Bureau of Prisons. Ultimately, the Judge decided against re-imposing a sentence of life imprisonment but rather selected the 708-month sentence stating that he did so both to punish the defendant for the crimes he committed and to protect the community. The defendant will receive credit for the nearly 12 years he has already served in prison.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Department of Law Enforcement. The prosecution was handled by Vincent Q. Kirby, Assistant U.S. Attorney, District of Arizona, Phoenix, Ariz.
CASE NUMBER: CR-03-0035-PCT-SMM
RELEASE NUMBER: 2014-040_PeteFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Morgantown Residents Indicted for Theft of Government MoniesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Two Morgantown, West Virginia, residents have been indicted by a Federal Grand Jury on charges of theft of government monies.
U.S. Attorney William J. Ihlenfeld, II, announced that Carl J. Gaul, age 40 and Shawn E. Ratliff, age 35 of Morgantown were named in a two-count Indictment charging them with conspiracy to commit embezzlement, theft and conversion of government funds and one count of embezzlement, theft and conversion of government funds. The Indictment charges that from May 1, 2013, to November 30, 2013, in Preston and Monongalia Counties, Gaul and Ratliff conspired to embezzle government monies by causing multiple credit card transactions using monies of the United States Department of Justice, Federal Bureau of Prisons. Gaul and Ratliff caused to be made purchases in the amount of $13,084.58, utilizing a government-issued credit card to purchase items for their own use and benefit.
The U.S. Attorney’s Office is seeking to forfeit One Sanyo 42” LED TV; Two JBL Onbeat Awake devices; Two IHOME devices; Three Bose SoundLink systems; Two Beats by Dre Beat Box devices; One JBL Flip device and a $13,084.58 money judgment which constitutes proceeds from the illegal activity.
If convicted, Gaul and Ratfliff face up to 5 years in prison on the conspiracy charge and 10 years in prison on the embezzlement charge. This case will be prosecuted by Assistant U.S. Attorney Stephen L. Vogrin and was investigated by the United States Departemnt of Justice Office of Inspector General.
In other matters considered by the Grand Jury, Ihlenfeld announced that Joseph Garrett, age 50, of Haywood, West Virginia, was named in a two-count Indictment charging him with being a felon in possession of a firearm and possession of an unregistered firearm. If convicted, Garrett faces up to 10 years in prison on each count. This case will be prosecuted by Assistant U.S. Attorney Shawn A. Morgan and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty.
Mission Man Indicted for Assault and Firearm ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Possession of a Firearm and Ammunition by a Prohibited Person, Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, and Using and Carrying a Firearm during and in Relation to a Crime of Violence.
Vernon Robert Schmidt, a/k/a Sonny Bob Schmidt, age 28, was indicted on July 15, 2014. He appeared before U.S. Magistrate Mark A. Moreno on July 18, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about May 26, 2014, in Todd County, Schmidt assaulted two victims with a dangerous weapon, that is, a 9mm pistol, and the assault resulted in serious bodily injury to one of the victims. At the time of the assault, Schmidt, having previously been convicted of a crime punishable for a term of imprisonment exceeding one year, knowingly possessed a firearm and ammunition, and did so during and in relation to a crime of violence.
The charge is merely an accusation and Schmidt is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Schmidt was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Minnesota Man Sentenced to 8 Years for Fraud and Identity TheftRead the Press Release
Orlando, Florida – Senior U.S. District Judge John Antoon II today sentenced Ahmed Jibrell (37, St. Paul, Minnesota) to 8 years in federal prison for credit card fraud and identity theft. Jibrell is the seventeenth individual sentenced for his involvement in a nationwide conspiracy in which credit card numbers stolen from U.S. companies by international computer hackers were sold and used fraudulently in the United States.
Since August 2011, Judge Antoon has sentenced the following sixteen others for their participation in this credit card fraud conspiracy:
- Ruel Brown (37, South Carolina) was sentenced to 14 years and 4 months in prison.
- Troy Henry (37, Florida) was sentenced to 13 years and 4 months in prison.
- Chad Warner (31, Florida) was sentenced to 11 years and 3 months in prison.
- Randall Rodgers (32, California) was sentenced to 10 years and 1 month in prison.
- Gary Washington (33, Florida) was sentenced to 8 years and 9 months in prison.
- Derrick Dean (48, New York) was sentenced to 7 years in prison.
- Victor Lindsey (23, New Jersey) was sentenced to 5 years in prison.
- Erica Roberson (23, Florida) was sentenced to 5 years in prison.
- Nancy Major (21, Florida) was sentenced to 5 years in prison.
- Stacie Glapion (29, Florida) was sentenced to 3 years and 10 months in prison.
- Jenna Larson (22, Florida) was sentenced to 3 years and 2 months in prison.
- Ceaundra Thomas (21, Orlando) was sentenced to 3 years and 2 months in prison.
- Olivia Embry (25, Tennessee) was sentenced to 2 years and 10 months in prison.
- Cassandra Navarro (22, Florida) was sentenced to 2 years and 10 months in prison.
- Paige Savant (20, Florida) was sentenced to 2 years and 6 months in prison.
- Brandy Cannon (21, Florida) was sentenced to 2 years in prison.
According to court documents, the fraud and identity theft in this case was discovered when agents learned that the computer servers of a hotel in San Diego, California had been compromised, or "hacked," and thousands of credit card numbers and related identification information had been stolen. Agents later learned that the stolen credit card numbers were being used at retail stores throughout Central Florida and elsewhere in the United States. The conspirators in Central Florida, California, Minnesota, South Carolina, New York, New Jersey, and elsewhere in the United States, purchased stolen credit card information over the Internet from a conspirator based in the country of Azerbaijan, where the conspirators sent international wire transfers to pay for the stolen credit card information. Once the conspirators purchased the stolen credit card information, they used device-making equipment, such as re-encoding machines and computer software, to re-encode blank gift cards with the stolen credit card information. The conspirators then used the re-encoded gift cards at retail stores to purchase actual gift cards and other merchandise.
Each individual sentenced had a particular role in the conspiracy, from leaders, such as Chad Warner and Randall Rodgers, to the persons who entered the retail stores and used the counterfeit credit cards, such as Nancy Major. Ahmed Jibrell both created the re-encoded cards and also served as a sort of travel service for many of the other conspirators, using stolen credit card and identification information to book airfare and hotels for the conspirators and allowing them to travel throughout the United States.
"The sentencing of Ahmed Jibrell is is yet another example of how the Secret Service continues to successfully combat credit card theft and identity crimes,” said Special Agent in Charge of the U.S. Secret Service Orlando Field Office Dennis Ramos Martinez. “The Secret Service utilized state-of-the-art investigative techniques to dismantle this criminal network. Our success in this case and other similar investigations is a result of the extraordinary work of our investigators and our close work with our network of law enforcement partners.”
This case was investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorney Daniel C. Irick.
Memphis Man Sentenced to 12 Years for Distributing Child PornographyRead the Press Release
Memphis, TN – Kevin Davis, age 24, of Memphis, Tenn., was sentenced to 151 months in federal prison today following his guilty plea to one count of distribution of child pornography, announced U.S. Attorney Edward L. Stanton III.
In December 2012, agents working undercover identified a computer in the Memphis area that had child pornography images available for downloading. The children depicted in the images were being sexually assaulted or otherwise engaging in sexually explicit conduct. Further investigation revealed that the computer belonged to Kevin Davis of Memphis. Davis admitted that he had been using a peer-to-peer file-sharing program to make the illicit images available to others.
In addition to the prison sentence, U.S. District Judge Samuel H. Mays ordered Davis to serve five years of supervised release, forfeit all computers and media containing alleged child pornography, and pay $2,400 in restitution to identified victims whose images were among those Davis made available to others. There is no parole in the federal prison system.
This case was investigated by the Memphis Child Exploitation Task Force; Federal Bureau of Investigation; Homeland Security Investigations; Memphis Police Department; Shelby County Sheriff’s Office; U.S. Marshal’s Service, U.S. Secret Service; and the U.S. Postal Inspectors. Assistant U.S. Attorney Debra Ireland represented the government.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative of 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, PSC 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 PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”Memphis Man Convicted on Series of Robberies Receives 153 Years in Federal PrisonRead the Press Release
Memphis, TN – Ronnie Jackson, Jr., 29, of Memphis, TN, was sentenced to a prison sentence of 1846 months, or 153 years and 10 months, following his conviction on March 13, 2014, by a federal jury on 12 counts related to a series of business robberies in and around Shelby County, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.
According the facts presented in the indictment and revealed in open court, Jackson and his accomplices robbed three Dollar General Stores, a Family Dollar Store, and two Walgreens drug stores in April and May of 2012. During the last robbery, Jackson and a female accomplice went into the Walgreens at 824 West Poplar Street, Collierville, TN, to case the store. After Jackson and his female accomplice returned to their getaway vehicle, two male accomplices entered the store, forcing approximately 14 customers and five employees to the floor at gunpoint. They ordered the manager to open the safe and took more than $6,000.
One of the victims of the robbery managed to dial 911, and Collierville Police converged on the scene, arriving in time to witness one of the male accomplices attempting to enter the getaway vehicle. Jackson and his female accomplice were taken into custody and the male accomplices were apprehended after a brief foot pursuit.
Jackson was convicted on six counts of robbing a business engaged in interstate commerce (also known as “Hobbs Act” robberies), and six counts of using a firearm during a crime of violence.
In addition to the prison sentence, United States District Judge S. Thomas Anderson ordered Jackson to serve three years of supervised release. There is no parole in the federal prison system.
This case was investigated by the Safe Streets Task Force, specifically by the Federal Bureau of Investigation, the Memphis Police Department, and the Collierville Police Department. Assistant U.S. Attorney David Pritchard and Special Assistant U.S. Attorney Bo Summers represented the government .Manhattan U.S. Attorney Files Civil Injunction Lawsuit Against New York Sub-Contracting Company to Enforce Federal Tax LawsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States filed a civil injunction complaint in Manhattan federal court alleging that MEDWAY CONSTRUCTION INC. (“MEDWAY”), a construction sub-contracting company, has for years failed to comply with its tax obligations and has interfered with the enforcement of the internal revenue laws.
According to the allegations in the Complaint filed in Manhattan federal court:
MEDWAY has, since at least 2003, engaged in a pattern and practice of ignoring its federal tax obligations to the detriment of the U.S. Treasury. In particular, MEDWAY has incurred more than $1 million in unpaid federal tax liabilities, and has accumulated these liabilities on an ongoing basis since 2003. If left unaddressed, MEDWAY will continue its years-long pattern of failing to pay its taxes. The Complaint seeks to bar MEDWAY from failing to pay future tax liabilities on a timely basis, require it to comply with the internal revenue laws, and become current with all outstanding tax liabilities.
Simultaneously with the filing of the Complaint, the United States filed an Order to Show Cause seeking to temporarily enjoin MEDWAY from continuing to violate or interfere with the enforcement of the internal revenue laws.
Mr. Bharara thanked the Internal Revenue Service for its assistance in the case.
The case is being handled by the Office’s Tax and Bankruptcy Unit. Assistant U.S. Attorney James Nicholas Boeving is in charge of the case.
U.S. v. Medway Construction, Inc. complaint
Man Who Allegedly Escaped from Prison in 1973 Charged with Social Security Fraud, Identity Theft, and Unlawful Possession of A FirearmRead the Press Release
Ronald Dwaine Carnes, 69, from Waterloo, Iowa, has been charged with four counts of Social Security fraud, two counts of identity theft, and one count of being a felon and fugitive from justice in possession of a firearm. The charges are contained in an Indictment filed on July 22, 2014, in United States District Court in Cedar Rapids.
The Indictment alleges that Carnes was convicted of Robbery with Firearms in North Carolina in November 1970. He allegedly escaped from prison on or about August 4, 1973. Following his alleged escape, Carnes allegedly lived under the identities of two different persons to avoid detection by law enforcement. Carnes also allegedly used the two identities to collect Social Security benefits and to apply for Iowa drivers’ licenses. During an April 14, 2014, search of Carnes’ residence in Waterloo, Iowa, law enforcement agents allegedly found certified copies of birth certificates for both identities as well as a handgun and ammunition.If convicted on all charges Carnes faces a mandatory minimum sentence of two years’ imprisonment and a possible maximum sentence of thirty-four years’ imprisonment, as well as a fine, $700 in special assessments, and supervised release following any imprisonment.
Carnes appeared today in federal court in Cedar Rapids and was held without bond. Carnes’ next appearance for a status hearing is set for August 27, 2014. Trial is set for September 22, 2014.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by Social Security Administration, Office of the Inspector General, Office of Investigations, the Waterloo Police Department, and the Iowa Department of Transportation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-2033.
Lower Brule Man Charged with Robbery of MailRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Robbery of Mail.
Elmer LaRoche, age 27, was indicted on July 15, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 22, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 25 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about May 27, 2014, LaRoche assaulted a U.S. postal employee who has lawful charge, custody and control of United States mail and other property of the United States, with intent to rob mail and other property. In doing so, LaRoche put the life of the employee in jeopardy by the use of a dangerous weapon.
The charge is merely an accusation and LaRoche is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
LaRoche was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Lake Charles Woman Pleads Guilty to Stealing More Than $250,000 from Her EmployerRead the Press Release
LAKE CHARLES, La. –A Lake Charles woman pleaded guilty to stealing more than a quarter of a million dollars from her employer, U.S. Attorney Stephanie A. Finley announced today.
Kristen Brady, 47, of Lake Charles, pleaded guilty before U.S. District Judge Patricia Minaldi to one count of bank fraud. According to the evidence presented at the guilty plea, Brady worked for a Lake Charles rental company as a bookkeeper for 12 years before her employment was terminated in November 2013. It was later discovered that she had forged authorizing signatures on more than 200 checks to her benefit in the company’s name, and in the process, received $255,324.04 of which she was not entitled.
“Criminals should know that we will prosecute those who steal from local businesses,” Finley stated. “Brady now will face the consequences of her actions.”
Brady faces a maximum penalty of 30 years in prison, five years of supervised release, restitution and a $1 million fine. A sentencing date of October 30, 2014 was set.
The U.S. Secret Service and the Lake Charles Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Howard C. Parker is prosecuting the case.
Justice Department Issues Joint Statement of Principles with City of Albuquerque, New Mexico, to Reform Albuquerque Police DepartmentRead the Press Release
The Justice Department today announced it has signed a joint statement of principles with the city of Albuquerque, New Mexico, that reflects the good-faith intent of both sides to enter into a court-enforceable agreement to reform the Albuquerque Police Department (APD). The joint statement of principles publicly specifies the measures that the department and the city are undertaking in order to resolve the findings resulting from the department’s investigation into use of force by APD. On April 10, 2014, following an extensive investigation, the department found reasonable cause to believe that APD engages in a pattern or practice of use of excessive force, including unreasonable deadly force.
Following the release of the findings letter the department and the city each separately reached out to numerous stakeholders across Albuquerque to hear their ideas and concerns about the reform of APD. Attorneys and staff of the department have spoken to police officers, city officials, mental health service providers, advocacy organizations, individuals who have been personally affected by APD’s past conduct and other community members. The department has held dozens of meetings and met with hundreds of people across the city. Through these efforts, both sides have gained important insights into officers’ and the community’s concerns that will shape the final agreement. The department is encouraged by the feedback it has received and is committed to sustainable reforms that will ensure APD delivers services in a manner that respects the rights of residents, promotes mutual confidence between the police and the community and improves public and officer safety.
“This agreement marks an important step forward in addressing the unreasonable use of deadly force uncovered in our investigation into the Albuquerque Police Department," said Attorney General Eric Holder. "The residents of Albuquerque depend on their police department to serve their community with honor and integrity. In the overwhelming majority of cases, our dedicated local law enforcement officials – who put their lives on the line every day— do just that. But when misconduct does occur, we will never hesitate to act in order to secure the civil rights of everyone in this country. As a result of our ongoing action, I am confident that the Albuquerque Police Department will be able to correct troubling practices, restore public trust, and better protect its citizens against all threats and dangers - while providing the model of professionalism and fairness that all Americans deserve.”
“We commend the city for engaging in good-faith negotiations to reach a court-enforceable agreement that will ensure sustainable reforms of APD,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The joint statement of principles provides the community with our commitment to work expeditiously with the city to craft a durable agreement that will resolve our findings and will ensure that APD provides effective and constitutional policing to the people of Albuquerque.”
“Since the release of DOJ’s findings letter, we have asked for and received valuable ideas and insights from officers, members of the community, representatives of many organizations, and others who have a stake in the future of our community,” said U.S. Attorney Damon Martinez for the District of New Mexico. “We are thankful to everyone who has spoken to us. The anticipated final court-enforceable agreement, which we hope to enter into with the city of Albuquerque, is already stronger because of the input we have received.”
The department and city have released the joint statement of principles to inform APD officers and the Albuquerque community that their concerns and ideas have been heard and that their ongoing participation will be critical to achieving sustainable reform. Specifically, the joint statement of principles announces that the department and the city expect to develop reforms in the eight areas outlined in the department’s findings letter: use of force policies, interactions with individuals with mental illness and other disabilities, tactical units, training, internal investigations and civilian complaints, management and supervision, recruitment and selection of officers, and community engagement and oversight. The joint statement of principles also indicates that the goal is to reach a court-enforceable agreement that will be overseen by an independent monitor.
During the negotiation process, the department remains interested in obtaining recommendations and information related to reforms from the public. The department continues to monitor the APD community hotline, which is available for both English and Spanish speakers, 1-855-544-5134 and the APD community email address.
The department’s full report on its investigation of APD and other related information can be found at the U.S. Attorney’s Office for the District of New Mexico website and at the department website . For more information about the Civil Rights Division, please visit the division website .
Justice Department Issues Joint Statement of Principles with City of Albuquerque, New Mexico, to Reform Albuquerque Police DepartmentRead the Press Release
ALBUQUERQUE – The Justice Department (DOJ) today announced it has signed a joint statement of principles with the City of Albuquerque, New Mexico, which reflects the good-faith intent of both sides to enter into a court-enforceable agreement to reform the Albuquerque Police Department (APD). The joint statement of principles publicly specifies the measures that DOJ and the City are undertaking in order to resolve the findings resulting from DOJ’s investigation into use of force by APD. On April 10, 2014, following an extensive investigation, DOJ found reasonable cause to believe that APD engages in a pattern or practice of use of excessive force, including unreasonable deadly force.
Following the release of the findings letter DOJ and the City each separately reached out to numerous stakeholders across Albuquerque to hear their ideas and concerns about the reform of APD. Attorneys and staff of the department have spoken to police officers, city officials, mental health service providers, advocacy organizations, individuals who have been personally affected by APD’s past conduct and other community members. DOJ has held dozens of meetings and met with hundreds of people across the city. Through these efforts, both sides have gained important insights into officers’ and the community’s concerns that will shape the final agreement. DOJ is encouraged by the feedback it has received and is committed to sustainable reforms that will ensure APD delivers services in a manner that respects the rights of residents, promotes mutual confidence between the police and the community and improves public and officer safety.
“This agreement marks an important step forward in addressing the unreasonable use of deadly force uncovered in our investigation into the Albuquerque Police Department,” said Attorney General Eric Holder. “The residents of Albuquerque depend on their police department to serve their community with honor and integrity. In the overwhelming majority of cases, our dedicated law enforcement officials – who put their lives on the line every day – do just that. But when misconduct does occur, we will never hesitate to act in order to secure the civil rights of everyone in this country. As a result of our ongoing action, I am confident that the Albuquerque Police Department will be able to correct troubling practices, restore public trust, and better protect its citizens against all threats and dangers – while providing the model of professionalism and fairness all Americans deserve.”
“We commend the city for engaging in good-faith negotiations to reach a court-enforceable agreement that will ensure sustainable reforms of APD,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The joint statement of principles provides the community with our commitment to work expeditiously with the city to craft a durable agreement that will resolve our findings and will ensure that APD provides effective and constitutional policing to the people of Albuquerque.”
“Since the release of DOJ’s findings letter, we have asked for and received valuable ideas and insights from officers, members of the community, representatives of many organizations, and others who have a stake in the future of our community,” said U.S. Attorney Damon Martinez for the District of New Mexico. “We are thankful to everyone who has spoken to us. The anticipated final court-enforceable agreement, which we hope to enter into with the city of Albuquerque, is already stronger because of the input we have received.”
DOJ and the City have released the joint statement of principles to inform APD officers and the Albuquerque community that their concerns and ideas have been heard and that their ongoing participation will be critical to achieving sustainable reform. Specifically, the joint statement of principles announces that DOJ and the City expect to develop reforms in the eight areas outlined in the department’s findings letter: use of force policies, interactions with individuals with mental illness and other disabilities, tactical units, training, internal investigations and civilian complaints, management and supervision, recruitment and selection of officers, and community engagement and oversight. The joint statement of principles also indicates that the goal is to reach a court-enforceable agreement that will be overseen by an independent monitor. A copy of the complete joint statement of principles is attached.
During the negotiation process, DOJ remains interested in obtaining recommendations and information related to reforms from the public. DOJ continues to monitor the APD community hotline, which is available for both English and Spanish speakers, 1-855-544-5134 and the APD the APD community email address: [email protected].
DOJ’s full report on its investigation of APD and other related information can be found at the U.S. Attorney’s Office website http://www.justice.gov/usao/nm/APD.html and at DOJ’s website http://justice.gov/crt/about/spl/findsettle.php. For more information about the Civil Rights Division, please visit the http://www.justice.gov/crt/index.php.
Justice Department Issues Joint Statement of Principles with City of Albuquerque, New Mexico, to Reform Albuquerque Police DepartmentRead the Press Release
ALBUQUERQUE – The Justice Department (DOJ) today announced it has signed a joint statement of principles with the City of Albuquerque, New Mexico, which reflects the good-faith intent of both sides to enter into a court-enforceable agreement to reform the Albuquerque Police Department (APD). The joint statement of principles publicly specifies the measures that DOJ and the City are undertaking in order to resolve the findings resulting from DOJ’s investigation into use of force by APD. On April 10, 2014, following an extensive investigation, DOJ found reasonable cause to believe that APD engages in a pattern or practice of use of excessive force, including unreasonable deadly force.
Following the release of the findings letter DOJ and the City each separately reached out to numerous stakeholders across Albuquerque to hear their ideas and concerns about the reform of APD. Attorneys and staff of the department have spoken to police officers, city officials, mental health service providers, advocacy organizations, individuals who have been personally affected by APD’s past conduct and other community members. DOJ has held dozens of meetings and met with hundreds of people across the city. Through these efforts, both sides have gained important insights into officers’ and the community’s concerns that will shape the final agreement. DOJ is encouraged by the feedback it has received and is committed to sustainable reforms that will ensure APD delivers services in a manner that respects the rights of residents, promotes mutual confidence between the police and the community and improves public and officer safety.
“This agreement marks an important step forward in addressing the unreasonable use of deadly force uncovered in our investigation into the Albuquerque Police Department,” said Attorney General Eric Holder. “The residents of Albuquerque depend on their police department to serve their community with honor and integrity. In the overwhelming majority of cases, our dedicated law enforcement officials – who put their lives on the line every day – do just that. But when misconduct does occur, we will never hesitate to act in order to secure the civil rights of everyone in this country. As a result of our ongoing action, I am confident that the Albuquerque Police Department will be able to correct troubling practices, restore public trust, and better protect its citizens against all threats and dangers – while providing the model of professionalism and fairness all Americans deserve.”
“We commend the city for engaging in good-faith negotiations to reach a court-enforceable agreement that will ensure sustainable reforms of APD,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The joint statement of principles provides the community with our commitment to work expeditiously with the city to craft a durable agreement that will resolve our findings and will ensure that APD provides effective and constitutional policing to the people of Albuquerque.”
“Since the release of DOJ’s findings letter, we have asked for and received valuable ideas and insights from officers, members of the community, representatives of many organizations, and others who have a stake in the future of our community,” said U.S. Attorney Damon Martinez for the District of New Mexico. “We are thankful to everyone who has spoken to us. The anticipated final court-enforceable agreement, which we hope to enter into with the city of Albuquerque, is already stronger because of the input we have received.”
DOJ and the City have released the joint statement of principles to inform APD officers and the Albuquerque community that their concerns and ideas have been heard and that their ongoing participation will be critical to achieving sustainable reform. Specifically, the joint statement of principles announces that DOJ and the City expect to develop reforms in the eight areas outlined in the department’s findings letter: use of force policies, interactions with individuals with mental illness and other disabilities, tactical units, training, internal investigations and civilian complaints, management and supervision, recruitment and selection of officers, and community engagement and oversight. The joint statement of principles also indicates that the goal is to reach a court-enforceable agreement that will be overseen by an independent monitor. A copy of the complete joint statement of principles is attached.
During the negotiation process, DOJ remains interested in obtaining recommendations and information related to reforms from the public. DOJ continues to monitor the APD community hotline, which is available for both English and Spanish speakers, 1-855-544-5134 and the APD the APD community email address: [email protected].
DOJ’s full report on its investigation of APD and other related information can be found at the U.S. Attorney’s Office website http://www.justice.gov/usao/nm/APD.html and at DOJ’s website http://justice.gov/crt/about/spl/findsettle.php. For more information about the Civil Rights Division, please visit the http://www.justice.gov/crt/index.php.
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Jury Finds Sacramento Man Guilty of Conspiracy and Money Laundering in Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — After a six–day trial in a mortgage fraud case, a federal jury found Leonard E. Williams, 52, of Sacramento, guilty today of conspiracy to commit mail and wire fraud and two counts of money laundering, United States Attorney Benjamin B. Wagner announced. The trial was held before United States District Judge William B. Shubb.
According to evidence presented at trial, from late 2006 into 2008, Williams conspired with others to carry out a mortgage fraud scheme in the Chico and Sacramento areas using his companies Diamond Hill Financial and Bay Area Real Estate Holdings. The scheme resulted in the issuance of more than $2 million in home loans, with most of the buyers ultimately defaulting.
To carry out the scheme, Williams and his partner Joshua Clymer recruited underqualified buyers, including family and friends, to purchase homes with promises of cash back, no money down, and illusory equity in the homes. Williams and his co-conspirators assisted these home buyers in securing loans with fraudulent loan applications that contained lies about the buyers’ employment, income, assets, and intent to occupy the homes as a primary residence. In most cases, at Williams’ suggestion and encouragement, the loan applications falsely stated that the buyers worked at Diamond Hill Financial, and Williams himself maintained the charade by confirming this false information when lenders called to verify it.
The loan applications also listed false assets and were accompanied by various forged documents, including altered bank statements, fake W-2s, fake paystubs, and false gift letters and affidavits. Williams and his coconspirators also misled lenders about the true purchase price of the homes by fraudulently indicating down payments were made when in fact they were not, and giving cash back to buyers outside of escrow, without disclosing these facts to the lenders. These lies had the effect of increasing the amount of the loans to the buyers, which in turn increased the profits of the fraud to Williams, Clymer, and others. The profit to Williams and Clymer varied from $5,000 to over $30,000 per transaction, with the two of them often splitting the proceeds.
“Fraud like that committed by Williams and his co-conspirators was an unnecessary contributor to the financial crisis that had such a serious impact on our country, and our communities in Northern California in particular,” said United States Attorney Wagner. “Even though the flood of foreclosures resulting from that crisis has started to subside, this conviction is evidence of the continuing commitment by my office and our federal and local law enforcement partners to hold accountable those who sought to profit by engaging in mortgage fraud.”
“Victims of mortgage fraud may include the banks that loan the money, but also include all homeowners and would-be homeowners who end up paying for this type of fraud,” said José M. Martínez, Special Agent in Charge, IRS-Criminal Investigation. “IRS-CI is committed to pursuing those who line their pockets with profits from these schemes.”
Judge Shubb remanded Williams into custody pending sentencing. Prior to trial, co-defendant Joshua Clymer pleaded guilty to conspiracy to commit mail and wire fraud and awaits sentencing.
This case is the product of an investigation by the Federal Bureau of Investigation, Internal Revenue Service, Criminal Investigations, and the Butte County District Attorney’s Office’s Major Crimes Unit. Williams is the last of 14 defendants who have been convicted of mortgage fraud offenses in connection with this and related cases. Others who already been convicted and sentenced include William E. Baker, Shane Burreson, Christopher M. Chiavola, Carlos Chamorro, Eric Clawson, Niche Fortune, Garret Gililland, Kesha Haynie, Remy Heng, Nicole Magpusao, Brandon Resendez, and Anthony Symmes. Twelve of the defendants pleaded guilty. Juries have convicted the two defendants who went to trial, Williams and Haynie. Assistant United States Attorneys Christopher S. Hales and Audrey B. Hemesath are prosecuting the case.
Williams is scheduled to be sentenced by Judge Shubb on October 27, 2014. Williams faces a maximum statutory penalty of 20 years in prison for conspiracy to commit mail and wire fraud, and 10 years in prison and a $250,000 fine for each count of money laundering. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
July Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 25 indictments charging 27 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Filimon Abarca-Gallardo, age 33, of Ralston, Nebraska, is charged with illegal reentry into the United States on or about July 16, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Carlos Barrios-Perez, age 41, of Omaha, is charged with illegal reentry into the United States on or about June 11, 2014, following deportation as a felon. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Eric-Arnaud Benjamin Briere De L’Isle, age 32, of Atlanta, Georgia, is charged with intent to defraud and possession of 15 or more counterfeit and unauthorized access devices on or about June 20, 2014. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* James M. Brunzo, Jr., age 48, of Omaha, is charged with possession with intent to distribute 50 grams or more of methamphetamine on or about June 23, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Adam M. Crom, age 28, of Bellevue, Nebraska, is charged with distribution of 5 grams or more of methamphetamine on or about July 1, 2014. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment.
* Melissa S. Edwards, age 41, of Sioux City, Iowa, is charged with theft of government money and property. The defendant allegedly converted to her own use more than $150,000 of currency and property from the Department of Housing and Urban Development. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Amancio Estrada-Martias, age 48, is charged with illegal reentry into the United States on or about June 25, 2014, following deportation as a felon. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jose Angel Felix Gurrola, age 34, is charged with possession with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine on or about July 2, 2014. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment.
* Jerrell D. Jackson, age 25; of Omaha, is charged with being a felon in possession of a firearm on or about March 28, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Mario Alberto Jimenez-Becerril , age 49, is charged with illegal reentry into the United States on or about July 3, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Breidi Josue, also known as Breidi Gonzalez-Canaca, age 27, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with misuse of a Social Security Number on or about July 27, 2012. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges that on or about July 27, 2012, Josue misused a Social Security Card and a State of Nebraska non driver’s License, knowing that said documents were not issued lawfully for his use. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count III of the Indictment alleges on or about July 27, 2012, the defendant made a false statement and claimed to be a United States citizen with the intent to receive Federal and State benefits and to be employed in the United States. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* James C. Lebo, age 45, of Lincoln, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with receipt and distribution of child pornography from at least on or about December 1, 2013, to on or about June 18, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, supervised release for life, and a $100 special assessment. Lebo is charged in Count II with possession of child pornography from on or about June 8, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, supervised release for life, and a $100 special assessment. The indictment also alleges property used or intended to be used as part of this violation should be forfeited to the United States.
* Juan Reynaldo Medina-Parra, also known as Eliseo Medina-Garcia, age 37, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine and a mixture or substance containing a detectable amount of heroin from an unknown date but at least as early as May 2012, and continuing to in or about October 2012. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Medina-Parra with money laundering from an unknown date but at least as early as May 2012, and continuing to in or about October 2012. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Pedro Mejia-Guardado, age 30, of Omaha, is charged with illegal reentry into the United States on or about June 13, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Victor Pascual-Villa, age 27; Jose Erives-Rios, age 24; and Amber Hughes, age 32 are charged in a two-count Indictment. Count I of the Indictment charges the defendants with conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine beginning on or about July 1, 2013, and continuing to on or about June 4, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment alleges that on or about June 4, 2014, Pascual-Villa possessed a North American Arms Guardian .380 firearm, during and in relation to, and in furtherance of the drug trafficking offense alleged in Count I. The maximum possible penalty is imprisonment of not less than 5 years and up to life to be served consecutive to any other sentence imposed, a $250,000 fine, a 5 year term of supervised release and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in Count I of the indictment, or property used to facilitate the violation, including but not limited to $9,045.00 in United States currency should be forfeited to the United States.
* Froilan Penaloza-Gutierres, also known as Horacio Lozano-Gutierrez, age 31, of Omaha, is charged with illegal reentry into the United States on or about July 3, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Cesar Reyes-Garcia, age 25, of Omaha, is charged with illegal reentry into the United States on or about July 15, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* David Roberts, age, 41, of Omaha, is charged with ten counts of wire fraud from at least June, 2011, and continuing through at least February, 2012. It is alleged that Roberts fraudulently received checks purported to be payments for purchases for services and products, in the approximate amount of $91,669.81 The maximum possible penalty for each of these counts if convicted is 20 years imprisonment, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.* Salvador Sanchez-Barron, age 28, of Lincoln, is charged with illegal reentry into the United States on or about December 16, 2013, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Paul M. Tegeler, age 67, of Lexington, Nebraska, is charged with coercion and online enticement of a minor on or about April 23, 2014, and continuing until May 3, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, supervised release for life, and a $100 special assessment. The indictment also alleges property used or intended to be used as part of this violation should be forfeited to the United States.
* Luciano Tobar-Tobar, age 42, of Omaha, is charged with illegal reentry into the United States on or about July 15, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Randall W. Toothaker, age 57, of Lincoln, is charged with theft of Government property from the United States Department of Veteran Affairs on July 26, 2013. The maximum possible penalty if convicted is 10 years imprisonment, a fine of $250,000, a 3 year term of supervised release and a $100 special assessment.
* Bernard Randolph Turner, Jr., is charged with being a felon in possession of a firearm on or about June 13, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Francisco Vasquez-Chavez, age 43, of Fremont, Nebraska, is charged with illegal reentry into the United States on or about July 10, 2014, following deportation as a felon. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year team of supervised release, and a $100 special assessment.
* Hugo Vicente-Vicente, age 29, of Grand Island, Nebraska, is charged with illegal reentry into the United States on or about August 17, 2013, following deportation as a felon. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year team of supervised release, and a $100 special assessment.Jicarilla Apache Man Pleads Guilty to Federal Assault ChargesRead the Press Release
ALBUQUERQUE – Robert Yazzie, Jr., 48, a member of the Jicarilla Apache Nation who resides in Dulce, N.M., pleaded guilty this morning to a federal assault charge arising out of a violent attack on his intimate partner.
Yazzie was arrested on May 27, 2014, on an indictment charging him with assault resulting in serious bodily injury. The indictment alleged that Yazzie assaulted the victim on May 17, 2013, and caused her to suffer serious bodily injury.
During today’s proceedings, Yazzie pled guilty to the indictment and admitted assaulting his intimate partner by hitting her in the face and head multiple times with a closed fist. Yazzie acknowledged that as a result, the victim sustained bilateral nasal bone fractures and hematomas to the head and face. The assault occurred within the Jicarilla Apache Nation.
Yazzie has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Yazzie faces a statutory maximum penalty of ten years in prison.
This case was investigated by the Jicarilla Apache Tribe Police Department and is being prosecuted by Special Assistant U.S. Attorney David Adams.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Jayne Concialdi Pleads Guilty to White River Junction EmbezzlementRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Jayne Concialdi, 51, a former resident of Quechee who now lives in Connecticut, pleaded guilty today in United States District Court in Burlington to a charge of wire fraud. U.S. District Judge William K. Sessions III released Concialdi on conditions pending sentencing, which is set for December 1.
On June 19, 2014, the United States filed a one-count information charging Concialdi with wire fraud. Today, Concialdi pled guilty to the information. According to the information, Concialdi was employed as an administrative assistant to the treasurer of New England Research, Inc., a company in White River which specializes in the measurement and interpretation of rock properties for the energy industry. Concialdi had bookkeeping responsibilities. Between 2011 and early 2014, Concialdi misappropriated about $125,000 from her employer, primarily by using company funds to pay her personal credit card obligations. The defendant also misused company credit cards to make purchases for her own benefit. NERI uncovered the embezzlement this past February.
Concialdi faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence will be determined with reference to federal sentencing guidelines.
This case was investigated by the Hartford Police Department and the Federal Bureau of Investigation.
Concialdi is represented by Jordana Levine. The prosecutor is Assistant U.S. Attorney Gregory WaplesJamesville Man Enters Guilty Plea to Conspiracy to Commit Bank FraudRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York announces that DAVID PIZIO (58, of Jamesville, NY) entered a guilty plea in U.S. District Court to the felony offense of conspiracy to commit bank fraud. The defendant is facing a statutory maximum of 30 years imprisonment and a maximum fine of $1,000,000.00. PIZIO is scheduled to be sentenced on December 5, 2014, before the Honorable David N. Hurd in Utica, NY.
During the plea hearing on July 24, 2014, PIZIO admitted he was one of the owners of Syracuse Suburban Airport, LLC (“SSA”). In 2004, SSA purchased a 93 acre reliever airport site in Hastings, New York for $350,000.00. Between 2004 and 2009, SSA received five Federal Aviation Administration (“FAA”) grants totaling approximately $2,973,621.00 to be used for planning and development at the reliever airport in Hastings.
On April 29, 2005, SSA obtained a line of credit from First Niagara Bank in the amount of $650,000.00. The line of credit agreement stated that the loan proceeds were to be used by SSA only for airport expenditures reimbursable by the FAA through the grants. The line of credit agreement specifically listed DAVID PIZIO as one of the persons authorized to make requests for loans under the line of credit. PIZIO was authorized to sign for all bank accounts bearing the name of SSA, including the First Niagara line of credit.
$125,000.00 to a Texas real estate project
On December 13, 2005, PIZIO submitted an invoice to First Niagara Bank for the release of loan proceeds in the amount of $125,000.00 for the purchase of airport equipment. On that same day, First Niagara Bank transferred $125,000.00 into SSA’s checking account at First Niagara Bank. PIZIO never intended to use the $125,000.00 to purchase airport equipment. Instead, PIZIO invested the $125,000.00 in a Texas real estate project without the knowledge or consent of First Niagara Bank.
$97,604.00 to the Upstate New York Bean Company
In 2006, PIZIO opened an investment brokerage account in the name of Gildner Road Associates (“GRA”). GRA was a corporation owned by PIZIO. Thereafter, PIZIO submitted an invoice to First Niagara Bank for the release of funds in the amount of $97,604.00 for the purchase of airport equipment. On that same day, First Niagara Bank transferred $97,604.00 into SSA’s checking account at First Niagara Bank. PIZIO never intended to use the $97,604.00 to purchase airport equipment. Instead, PIZIO transferred $96,000.00 from the GRA checking account to the investment account without the knowledge or consent of First Niagara Bank. In June of 2006, PIZIO transferred the money to the Upstate New York Bean Company. In 2006, PIZIO was affiliated with the Upstate New York Bean Company located in Marcellus, New York. In June 2006, PIZIO received First Niagara Bank loan proceeds in the form of checks from the Upstate New York Bean Company. The Upstate New York Bean Company is currently out of business.
This prosecution resulted from an investigation conducted by the U.S. Department of Transportation-Office of Inspector General, and the Federal Bureau of Investigations. The case was prosecuted by Assistant United States Attorney Ransom P. Reynolds. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315-448-0672).
Investigation Results in 7 Indicted in North Louisiana Cocaine ConspiracyRead the Press Release
SHREVEPORT, La. –A two-year-long undercover investigation has resulted in the seizure of more than $517,000 in cash and seven people being charged for conspiracy to distribute cocaine, firearm violations, and other related drug charges in parishes across north Louisiana, U.S. Attorney Stephanie A. Finley announced today.
A grand jury delivered a 24-count indictment Wednesday against Quincy D. Hoover, 39, and Quwanda L. Forest, 35, both of Natchez, La.; Jesse C. Thomas, 30 of Haynesville, La.; Rodney J. Raymond, 35, of Natchitoches, La.; Shannon D. Jenkins, 34, and Carlos C. Jenkins, 36 both of Ruston, La, and another individual who is at large.
From June 2012 to July 2014, the defendants conspired to distribute cocaine throughout Lincoln, Claiborne, Natchitoches, Sabine, DeSoto, Bossier and Caddo parishes with the source cities for the cocaine being Houston and Dallas. Controlled purchases by law enforcement of cocaine powder and crack cocaine were made from several dealers during the investigation. Federal and local law enforcement officials arrested five of the defendants on July 1, 2014 in the northwest Louisiana area, in which more than a half a million dollars in cash, firearms, 16 pounds of marijuana and other items were seized.
The defendants were arrested as part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation code named “Pit Stop.” The Drug Enforcement Administration (DEA), U.S. Marshals Service, U.S. Immigrations and Customs Enforcement, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Louisiana State Police, Lincoln Parish Sheriff’s Office, Ruston Police Department, Claiborne Parish Sheriff’s Office, Natchitoches Parish Sheriff’s Office, Natchitoches Police Department, Sabine Parish Sheriff’s Office, DeSoto Parish Sheriff’s Office, Bossier Parish Sheriff’s Office, Bossier City Police Department, Shreveport Police Department, Caddo Parish Sheriff’s Office, all participated in this OCDETF operation. Assistant U.S. Attorneys James G. Cowles Jr. and Cytheria Jernigan are prosecuting the case.
"The U.S. Attorney=s Office, along with our federal, state, and local partners, is committed to keeping our communities safe,” Finley stated. “Breaking up this drug distribution ring is a huge step in countering the flow of these illegal substances into the community. I want to thank all the agencies who have partnered with us on this operation and who continue to work to enforce both federal and state narcotics laws."
“The indictments, arrests, and seizures in this investigation are the direct result of outstanding partnerships with federal, state, and local law enforcement,” stated DEA Assistant Special Agent in Charge Joseph Shepherd. “DEA, along with our federal, state, and local law enforcement partners, will continue to pursue those who threaten our communities through the smuggling and distribution of illegal and dangerous drugs such as cocaine and marijuana. The abuse of these drugs can have devastating health and societal effects, and these arrests strike a significant blow to the illegal drug trafficking trade in this community.”
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Individual Who Provided False Statements Regarding Attempted Support of Extremist Group Pleads Guilty and Is SentencedRead 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, announce the conviction and sentencing of Soloman Zaid Alkadhi, 24, of Plantation. On April 24, 2014, Alkadhi pled guilty to a one count information charging him with providing a false statement to Special Agents of the FBI in a matter involving international terrorism, in violation of Title 18, United States Code, Section 1001(a)(2). Alkadhi was sentenced yesterday by U.S. District Judge Joan A. Lenard to 60 months in prison, followed by three years of supervised release.
In October 2009, Alkadhi denied to FBI agents that he planned to travel to Somalia to join and provide assistance to al-Shabaab, a designated foreign terrorist organization. According to court documents, Alkadhi planned to travel to Somalia to join and provide assistance to the extremist group. Alkadhi acknowledged that after conducting online research into al-Shabaab and its efforts to wage jihad, he traveled from Florida to Kenya and then attempted to cross the Kenyan-Somalian border in an effort to join and provide assistance to that organization.
Mr. Ferrer commended the outstanding investigative efforts of the FBI. The case was prosecuted by Assistant U.S. Attorney Adam Fels, with assistance of Trial Attorney Jerome Teresinski of the United States Department of Justice, National Security Division, Counterterrorism Section.
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.
Hubbard, Iowa, Woman Pleads Guilty to Bank FraudRead the Press Release
Woman Also Pleads Guilty To Unlawful Manufacture and Possession of a Department of Justice Seal
A woman who forged a court order for a purported structured settlement in support of her request for a bank loan, and who forged a separate letter purporting to be from a United States Department of Justice official, pled guilty on July 23, 2014, in federal court in Cedar Rapids.
Stephanie Drake (formerly known as Stephanie Drake-Zierke), age 50, from Hubbard, Iowa, was convicted of one count of bank fraud and one count of unlawful manufacture and possession of a United States Department of Justice seal.
In a plea agreement, Drake admitted that, between about March 2009 and September 2012, she fraudulently induced a bank to loan her money by falsely claiming that her husband had been awarded a legal settlement in the amount of $2,200,000. Drake also admitted presenting a fabricated document to the bank purporting to be a court order for the legal settlement. Drake also admitted defrauding the same bank by presenting falsified loan paperwork indicating her husband’s parents had agreed to guarantee a loan of up to $162,600. Drake admitted that, between May 2008 and September 2012, the bank loaned her a total of at least $483,513.51. Drake admitted her conduct resulted in a loss to the bank of more than $400,000.
Also in the plea agreement, Drake admitted that, in about January of 2012, she unlawfully manufactured and possessed a seal of the United States Department of Justice. Drake admitted she forged a letter to her husband, dated January 23, 2012, that bore the seal and purported to be from the United States Attorney for the Northern District of Iowa. Drake admitted forging the letter in an attempt to substantiate a false claim that her husband was cooperating with federal authorities in a theft investigation.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Drake remains free on bond pending sentencing. Drake faces a possible maximum sentence of 30 years’ and 6 months’ imprisonment, a $1,005,000 fine, $110 in special assessments, and 5 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Peter Deegan and was investigated by the Federal Bureau of Investigation and the Hardin County, Iowa, Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-2032.