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24 July 2014
Easton Woman Charged in Fraud SchemeRead the Press Release
Felicia Anne Straub, 41, of Easton, Pennsylvania, Pennsylvania, was charged Tuesday by information with three counts of wire fraud, one count of aggravated identity theft, and one count of tax evasion announced United States Attorney Zane David Memeger. The information alleges that between September 5, 2006, and December 26, 2010, Straub as the former office manager of Financial Adjuster’s, Inc. misappropriated FAI funds of at least $561,579.39, which she used for personal purchases of goods and services, and to pay her husband’s personal credit card, at various locations throughout Lehigh County, Pennsylvania, and elsewhere.
If convicted of all charges, Straub faces a maximum sentence of 67 years in prison, a mandatory minimum of two years in prison that must run consecutive to any sentence imposed on the tax and wire fraud counts, 3 years supervised release, a $500 special assessment, and a $750,000.00 fine.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, the Lehigh County District Attorney’s Office, and the Whitehall Township Police Department, and is being prosecuted by Assistant United States Attorney Kishan Nair.
Click here to view the indictment
An Indictment or Information 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, 215-861-8525Eagle Butte Man Charged with Second Degree Burglary, Larceny, and Possession of A Stolen FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Second Degree Burglary, Larceny, and Possession of a Stolen Firearm.
Shilo Hill, a/k/a Shilo Robideau, age 18, 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 15 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.
Hill is alleged to have unlawfully entered or remained in an Eagle Butte home to steal two firearms, which he then possessed for a period of time. The charges are merely an accusation and Hill is 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.
Hill was released on bond to await trial. Trial has been set for September 23, 2014.
Duval County Woman Indicted for Identity Theft, False Representation of A Social Security Number, and Impersonating an Internal Revenue Service EmployeeRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Leyvis Taveras (35, Jacksonville) with identity theft, false representation of a social security number, and impersonating a federal employee. If convicted on all counts, Taveras faces a maximum penalty of 13 years in federal prison.
According to the indictment, Taveras aided and abetted in the false representation of two social security numbers in a tax filing with the Internal Revenue Service. She also pretended to be an employee of the Internal Revenue Service investigating the identity theft associated with the two social security numbers.
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 Treasury Inspector General for Tax Administration Office of Investigations. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Drug Trafficker Sentenced to 10 Years in PrisonRead the Press Release
PHOENIX– On July 23, 2014, Ambrosio Nunez-Lopez, 65, of Mexico, was sentenced by U.S. District Judge David G. Campbellto 10 years in prison. Nunez-Lopez pleaded guilty on March 18, 2014 to conspiracy to possess with intent to distribute 500 grams or more of methamphetamine, a felony.
The Organized Crime Drug Enforcement Task Force investigation into the Nunez-Lopez Drug Trafficking Organization (DTO) took place from Jan. 2012 through May 2012 in Phoenix. On May 4, 2012, the defendant was charged with conspiring to possess with the intent to distribute methamphetamine and possessing methamphetamine. The evidence showed that the DTO imported methamphetamine from Mexico into the United States and transported it to the East Coast for distribution. After a four-month long investigation, officers conducted a traffic stop of Nunez-Lopez on Interstate 10 East, and searched his truck. Agents located approximately 120 pounds of methamphetamine in liquid form hidden in one of the dual gas tanks of his truck.
The investigation in this case was conducted by the Drug Enforcement Administration, the Tempe Police Department, the Arizona Department of Public Safety, and the Mesa Police Department. The prosecution was handled by Jonell L. Lucca, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-12-00982-PHX-DGC
RELEASE NUMBER: 2014-041_Nunez-LopezFor 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.District Court Enters Permanent Injunction Against New York Dietary Supplement Maker to Prevent Distribution of Adulterated SupplementsRead the Press Release
The Justice Department announced today that the U.S. District Court for the Eastern District of New York has entered a consent decree of permanent injunction against Applied Polymer Systems dba APS Pharmaco (APS) and its president, Nuka Reddy, all of Lindenhurst, New York, to prevent the distribution of adulterated dietary supplements.
According to a complaint filed July 21, the defendants violated the Federal Food, Drug, and Cosmetic Act (FDCA) by manufacturing and distributing dietary supplements that were adulterated. Under the FDCA, dietary supplement manufacturers are required to have systems in place to ensure that their products meet specifications for identity, purity, strength and composition. The government’s actions resulted from a series of inspections of APS’ manufacturing facility beginning in 2012, which revealed, among other things, that APS failed to perform identity tests or examinations for certain dietary ingredients before using them in their products.
In conjunction with the filing of the complaint, the defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction that prohibits them from committing violations of the FDCA. The consent decree requires the dietary supplement manufacturer to cease all operations and requires that if they wish to resume manufacturing dietary supplements in the future, the FDA first must determine that APS’ manufacturing practices have come into compliance with the law. The consent decree also requires a recall of all products sold since Jan. 1, 2014. The consent decree was filed with the complaint and was docketed on July 23.
The FDA referred this matter to the Department of Justice. The Consumer Protection Branch of the Justice Department’s Civil Division, together with the U.S. Attorney’s Office for the Eastern District of New York, brought this case on behalf of the United States.
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Conspirator Sentenced to Prison for $1.5 Million in Mortgage Fraud LossesRead the Press Release
Five Co-Conspirators Have Pleaded Guilty
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Demetrius Peete, age 46, of Manassas, Virginia, to a year and a day in prison followed by three years of supervised release for conspiring to commit wire fraud in connection with a mortgage fraud scheme which resulted in losses attributable to Peete of approximately $1.5 million. Judge Bredar also ordered Peete to pay restitution of $394,908 to the victims and to forfeit $1.5 million.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Brian Murphy of the United States Secret Service Baltimore Field Office; Special Agent in Charge Michael P. Tompkins, Washington Field Office, U.S. Department of Justice Office of the Inspector General; Howard County Police Chief Gary Gardner; and Howard County State’s Attorney Dario Broccolino.
According to his plea agreement and court documents, in 2008 and 2009, Peete agreed to participate in several fraudulent real estate transactions that settled at M&R Title, Inc., located in Alexandria, Virginia. In 2009, Peete also agreed to participate in several fraudulent real estate transactions that settled at Sanford Title Services, located in Columbia, Maryland. Peete, along with co-conspirators Bonnie Kreamer, Niesha Williams, Rhonda Scott and Emeka Udeze arranged real estate transactions so that they could siphon profits out of the transaction for themselves. Peete negotiated short sales on behalf of sellers in which the properties were sold for a higher price than was represented to the lien holders and the sellers.
Peete and his coconspirators deceived buyers, sellers and lenders to make it appear to sellers that they were selling their property at a low price, and to buyers and lenders that the property was being sold at a higher price. The co-conspirators created paperwork for two different sales of the property at the same time. The first sale was fraudulent because it was backdated, the buyer planned to immediately flip the property in a subsequent sale and the settlement statement listed a fake loan. In the second sale, the sales price was significantly increased and the settlement statement showed a large sum being disbursed to the lender to pay off an existing lien. In fact, those funds were improperly disbursed to the co-conspirators.
Peete admitted that his participation in the schemes involved at least 10 victims, including lenders, sellers and buyers of real estate, title insurance companies and lien holders. He further agreed that the reasonably foreseeable loss associated with Peete’s conduct is approximately $1.5 million.
Bonnie Kathleen Kreamer, a/k/a Bonnie Meehan, age 49, of Riva, Maryland; Gregory Green, age 49, of Waldorf, Maryland; Niesha Williams, age 35, of Fort Washington, Maryland; Rhonda Scott, age 53, of Oxon Hill, Maryland; and Emeka Udeze, age 39, of Bowie, Maryland, each previously pleaded guilty to their roles in the fraud. Kraemer, who was responsible for the daily operations at Sanford Title, was sentenced to 51 months in prison, and ordered to pay restitution of $2,499,048 to the victims and to forfeit $4.8 million. Scott was sentenced to 30 months in prison and ordered to forfeit $2.7 million and pay restitution of $703,000. Williams was sentenced to 27 months in prison and ordered to forfeit $3.1 million and pay restitution of $1,445,593. Green was sentenced to three months in prison and ordered to pay restitution of $404,596. The other conspirators await sentencing.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage Fraud/index.html.
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.
United States Attorney Rod J. Rosenstein praised the FBI, Department of Justice - OIG, Howard County Police Department, Secret Service and Howard County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Judson T. Mihok, who are prosecuting the case.
Clermont Woman Convicted for Tax Fraud and Aggravated Identity TheftRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found Tanya Fox (38, Clermont) guilty of 1 count of conspiracy to defraud the government with respect to claims, 5 counts of wire fraud, 10 counts of theft of government property, and 10 counts of aggravated identity theft. Fox faces a maximum penalty of 10 years in prison on the conspiracy count, 20 years’ imprisonment on each of the wire fraud counts, and 10 years with regard to each of the theft of government property counts. She faces an additional 2 years in prison for the aggravated identity theft charges, with the sentence to run consecutive to any sentence imposed on the previous charges. The United States will also seek a money judgment in the amount of $4,055,735 for the wire fraud and theft of government property charges. The judgment relates to the amount of fraudulent tax refunds that Fox and her co-conspirators received. The sentencing hearing is scheduled for October 20, 2014. Fox was originally indicted on March 14, 2014.
According to evidence introduced during the trial, Fox orchestrated a scheme to file fraudulent tax returns using identities that were stolen from a variety of sources. Fox directed other individuals to open business bank accounts in the name of a fraudulent tax preparation business and have the tax refunds deposited into those accounts. Fox worked with those individuals to withdraw the funds and spend the money. As part of the scheme, Fox attempted to receive approximately $5.8 million in fraudulent tax returns and was successful in receiving more than $4 million from the United States Treasury.
According to the testimony at trial, Fox spent the money received from the fraudulent tax returns to purchase a BMW 7 Series, Infinity M35, Chrysler Crossfire, and Volkswagen Beetle. The government has seized each of these vehicles. Fox also purchased a Maserati with the fraudulently-obtained proceeds. However, the Maserati was repossessed before it could be seized. Fox also used the proceeds from these offenses to have cosmetic surgery on two occasions and open a restaurant in the Orlando area.
Previously, Shanterica Smith, Gerald Williams, and Delray Duncan were convicted and sentenced for providing approximately 2,400 names from the Orange County Health Department to Fox, so that she and her co-conspirators could file the fraudulent tax returns. Smith was previously sentenced to 60 months in prison for her role in the conspiracy. Williams was sentenced to 54 months’ imprisonment, and Duncan was sentenced to 42 months in prison. In addition, April Cuyler pleaded guilty to conspiracy in this scheme and is scheduled for sentencing on September 8, 2014.
This case was investigated by the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, the United States Postal Inspection Service, and the Orange County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Shawn P. Napier.
Citizen of Morocco Admits Fabricating Refugee Application to Remain in U.S.Read the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that EL MEHDI SEMLALI FATHI, 26, a citizen of Morocco last residing in Bridgeport, waived his right to indictment and pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to one count of perjury in an immigration matter.
According to court documents and statements made in court, in January 2008, FATHI was admitted to the United States after he obtained a student visa to study at Virginia International University. In February 2009, FATHI’s student visa status was terminated by the university after he failed all of his classes during the Fall 2008 semester and did not register for classes for the Spring 2009 semester. After his student visa status was terminated, FATHI failed to leave the U.S.
In December 2010, FATHI was detained in immigration custody as a result of an arrest in Virginia. While he was detained, he met an individual who explained refugee relief to him. In an effort to obtain refugee relief and remain in the U.S., FATHI reviewed certain country reports relating to Morocco and then prepared and filed, under penalty of perjury, a false refugee application (I-589), which included events he learned about in the country reports. FATHI’s false statements included a claim that he would be persecuted by the Kingdom of Morocco based on his membership in a particular social group and imputed political opinion, and that he was arrested twice in 2007 and persecuted by the Moroccan government.
In June 2011, an immigration judge in Virginia released FATHI on bond. FATHI then moved to Bridgeport and his immigration case was transferred to Connecticut. In September 2011, FATHI represented to an immigration judge in Hartford that all of the information on his I-589 application was accurate when he knew that all of the information in support of his refugee claim was materially false.
While his immigration proceedings were pending, FATHI traveled to California where he was arrested and subsequently placed in immigration custody. In January 2013, after his immigration proceedings were transferred to California, FATHI again falsely represented to an immigration judge in Adelanto, Calif., that his refugee application was true and accurate. In another hearing in August 2013, FATHI again committed perjury while testifying in support of his refugee application by stating that he was arrested and savagely beaten several times by the Moroccan authorities when, in fact, he was never arrested or persecuted by the Moroccan authorities, and that he attended a university in Marrakech during which he participated in demonstrations that caused him to be arrested by the Moroccan authorities when, in fact, he never attended any university in Marrakech.
In February 2014, during an interview with a federal agent, FATHI falsely claimed that Moroccan intelligence authorities had arrested him as part of a conspiracy with all of the other members of Jamaat Ansar El-Mehdi, a Moroccan based terrorist group that was dismantled by Moroccan security forces in 2006.
FATHI has been detained since his arrest on April 7, 2014.
Chief Judge Hall scheduled sentencing for October 20, 2014, at which time FATHI faces a maximum term of imprisonment of five years.
In addition, FATHI has agreed to inform the immigration court that he falsified his refugee application, as well as perjured himself, and will accept a final order of removal to Morocco.
This matter is being investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force, which includes participants from Homeland Security Investigations (HSI) in New Haven, Internal Revenue Service – Criminal Investigation Division, Naval Criminal Investigative Service, Connecticut State Police, Bridgeport Police Department, Norwich Police Department and the New York Police Department. The HSI attaché office in Casablanca, Morocco, has provided critical assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Krishna Patel and Stephen Reynolds.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Cincinnati Man Indicted for Using Dead Children’s Identities to File False Income Tax ReturnsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI -- A federal grand jury here has indicted Christopher K. Smith, 28, of Cincinnati, alleging that he used the names and identifying information of dead children to file false income tax returns and claim tax refunds.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), announced the indictment returned yesterday.
The indictment alleges that between February 2012 and June 2012, Smith obtained the names and Social Security numbers of individuals, primarily deceased children, and used the information to file fraudulent income tax returns listing the individuals as taxpayers or dependents. Smith allegedly claimed refunds totaling $16,310.
The indictment charges Smith with four counts of wire fraud, each of which is punishable by up to 20 years in prison, and five counts of aggravated identity theft. Each count of aggravated identity theft is punishable by two years in prison, of which at least two years must be served consecutive to any time served for the fraud.
Smith will be scheduled to appear before a federal magistrate judge for an initial appearance on the charges.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Chief Executive Officer of International Stock Transfer Pleads Guilty in $3 Million Securities Fraud SchemeRead the Press Release
BROOKLYN, NY – Yesterday, Cecil Franklin Speight, also known as Frank Speight, pleaded guilty to conspiracy to commit mail fraud and securities fraud for engaging in a conspiracy to steal over three million dollars from investors. Speight was the sole owner, officer, and director of International Stock Transfer (IST), a registered transfer agent with the United States Securities and Exchange Commission (SEC) since May 2004. According to court filings and facts presented at the plea hearing, Speight stole at least $3.3 million from victim investors and used the proceeds to pay personal expenses, including purchases at Mercedes Benz, Nordstrom, Netflix, and Groupon. Speight faces up to five years’ imprisonment, at least $3.3 million in restitution, and a fine equal to double the investors’ losses.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“Rather than transferring capital to issuers, the defendant used the investors’ funds as his own, including financing his lifestyle in Florida. His victims, from the Eastern District of New York and around the world, were conned into buying bogus securities that were not worth the paper they were printed on. Now, he will be held to account for his crimes,” stated United States Attorney Lynch. Ms. Lynch extended her grateful appreciation to the Federal Bureau of Investigation, the agency responsible for leading the government’s investigation, and thanked the Securities and Exchange Commission for its assistance.
“Speight tricked his victims into thinking their money would be invested in high-yield securities, but he was essentially using their investments to fund his own lifestyle to the tune of several million dollars. People have the right to trade in an uncorrupted market, and today’s guilty plea is proof of the FBI’s continued determination to root out those who unlawfully interfere with this process,” stated FBI Assistant Director-in-Charge Venizelos.
IST was founded by Speight in 2004 as a transfer agent registered with the SEC with offices in Palm Beach, Florida. Speight used “cold callers” and other means to entice victims into investing their money in allegedly high yield securities. Speight promised the victims a high rate of return if they invested in securities that were purportedly associated with IST. Speight and his coconspirators directed the victims to wire their investment funds into purportedly secure attorney escrow accounts. Once the victims wired money to those escrow accounts, Speight typically stole the funds for his personal use, including the purchase of a Mercedes Benz automobile. Speight also withdrew over $350,000 of investors’ funds in cash.
Today’s guilty plea took place before United States Magistrate Judge Roanne L. Mann at the federal courthouse in Brooklyn, N.Y.
The government’s case is being prosecuted by Assistant United States Attorney Jack Dennehy.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency 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 Defendant:
CECIL FRANKLIN SPEIGHT
Age: 53
West Palm Beach, FL
E.D.N.Y. Docket No. 14-CR-379
Chicago Man Pleads Guilty to Sex Trafficking Offense with Underage Girl in Sacramento AreaRead the Press Release
SACRAMENTO, Calif. —Marquist Piere Bradford, 28, of Chicago, pleaded guilty today to sex trafficking of children by force, United States Attorney Benjamin B. Wagner announced.
According to court documents, in early 2012 Bradford recruited a 15-year-old girl to travel from Fresno to Sacramento where she was used by Bradford as part of a prostitution business from January 19 through February 5, 2012. According to court documents, Bradford maintained an apartment in Rancho Cordova, which he used as a base of operations for a prostitution business that spanned the Sacramento and Bay areas, as well as cities outside California. At least two of Bradford’s victims were under the age of 18. Bradford fled from Sacramento to the Chicago area after law enforcement recovered the victim in this case.
This case was the product of an investigation by the Sacramento County Sheriff’s Office and the Sacramento FBI Innocence Lost Task Force. Assistant United States Attorney Matthew G. Morris is prosecuting the case.
Bradford has remained in custody since his arrest in Springfield, Ill. in April 2012. He is scheduled to be sentenced by United States District Judge Morrison C. England, Jr. on October 23, 2014. Bradford faces a maximum statutory penalty of life in prison and a $250,000 fine. 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.
Buffalo Man Pleads Guilty to Bank Fraud ChargeRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Antwan Green, 32, of Buffalo, N.Y., pleaded guilty to conspiracy to commit bank fraud before U.S. Magistrate Judge Leslie G. Foschio. The charge carries a maximum sentence of 30 years in prison, a fine of $1,000,000 or both.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the prosecution, stated that the defendant was part of a conspiracy to defraud local area banks by participating in a “Check Kiting” scheme. Green, and others, opened bank accounts and deposited large checks to the accounts. The deposited checks were written on accounts that had insufficient funds or on accounts that had been closed. Before the banks determined that the checks were not supported by any funds, the defendant and others withdrew smaller amounts from the accounts. Green actually made away with $35,547.93, but the amount of the intended loss was more than $367,000.
All five defendants in this case have been convicted.
The plea is the culmination of an investigation by the United States Secret Service, under the direction of Special Agent in Charge Tracy Gast.
Sentencing will be scheduled at a later date bfore Chief U.S. District Judge William M. Skretny.Broward County Sheriff’s Deputy Sentenced in Connection with Rothstein InvestigationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), announce that Jeff Alan Poole, 47, of Weston, was sentenced today in Ft. Lauderdale by U.S. District Judge William P. Dimitrouleas to one year and one day in prison, followed by three years of supervised release. Poole was also ordered to pay $22,071.02 in restitution.
On May 8, 2014, Poole pled guilty to conspiracy to violate civil rights, in violation of Title 18, United States Code, Section 241. At the time of the offense, the defendant was employed by BSO as a detective.
When he entered his guilty plea, the defendant admitted that he utilized his position within BSO unlawfully to arrest the ex-wife of an attorney who was engaged in a child custody dispute with her at the request of BSO Lt. David Benjamin. Poole also agreed at his guilty plea that this request emanated from Scott W. Rothstein, a former attorney who is now serving a 50-year sentence in connection with a Ponzi scheme which he had operated. On July 21, 2014, Benjamin was sentenced to a prison term of five years in connection with the Rothstein case.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI and BSO. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
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.
Brooklyn Man Convicted of Attempting to Drug and Sexually Abuse ChildrenRead the Press Release
Earlier today, following a two week trial, a federal jury in Brooklyn, New York, returned a guilty verdict against Bebars Baslan on charges of travel with intent to engage in sexual acts with a child under 12, conspiracy to produce child pornography, attempted production of child pornography, and attempted coercion and enticement of a child to engage in illegal sexual conduct. The charges relate to the defendant’s plot to sexually abuse three children, who were the sons and niece of an individual who became a government informant. The conviction was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, George Venizelos, Assistant Director-in-Charge of the Federal Bureau of Investigation, New York Field Office, and William J. Bratton, Commissioner, New York City Police Department.
The evidence at trial showed that in January 2013, the informant reported the defendant’s sexual interest in children to the government. Over the course of the next month, the informant made numerous recordings of the defendant plotting to sexually abuse children. The evidence showed that Baslan wanted to take photographs and video of his girlfriend giving oral sex to a 3-month old in order to use that photograph as blackmail to prevent her from going to the police. The defendant planned to use his girlfriend’s history of working with children to entice parents to allow her to babysit their children, whom the defendant would then drug and sexually abuse.
The evidence showed that the defendant’s plan was halted when the government set up a sting in which its informant offered the defendant the opportunity to sexually abuse his two sons and 7-year-old niece at a Jersey City hotel on March 19, 2013. On that day, the defendant provided the informant with children’s Benadryl and instructed the informant to give his niece an excessive dose in order to “knock her out” so that the defendant could sexually abuse her. Later that night, Baslan and his girlfriend then traveled to the Jersey City hotel armed with an array of camera equipment to photograph the sexual abuse. As they attempted to enter the room that they believed the informant to be in, agents of the FBI arrested them.
“The protection of children from sexual predators is one of our highest priorities. Let this be a warning to those who would prey on the most vulnerable among us; we will use every means to ensure that those who seek to sexually exploit children are prosecuted to the fullest extent of the law,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the Federal Bureau of Investigation and New York City Police Department who investigated this case.
At sentencing, the defendant faces a minimum of 30 years’ imprisonment and maximum of life imprisonment.
The government’s case is being prosecuted by Assistant United States Attorney Tyler Smith, Tiana Demas, and Robert Polemeni.
The Defendant:
Name: BEBARS BASLAN
Age: 36
Brooklyn, New York
E.D.N.Y. Docket No. 13-220 (RJD)
Belcourt Man Sentenced for AssaultRead the Press Release
BISMARCK - U. S. Attorney Timothy Q. Purdon announced that on July 24, 2014, Jeremy Michael Laducer, 27, Belcourt, N.D., pleaded guilty and was sentenced before U. S. District Judge Daniel L. Hovland on a charge of assault resulting in serious bodily injury. Laducer received credit for four days in custody and will be on home confinement for 12 months. Laducer was further ordered to be on supervised release for three years, to pay a $100 special assessment to the Crime Victim’s Fund, and to pay $8,364.15 in restitution.
On March 29, 2013, Laducer assaulted a man outside Horsemen’s Bar which is located near Belcourt. The victim underwent surgery for facial injuries resulting from the assault.
The case was investigated by Bureau of Indian Affairs – Turtle Mountain Agency.
Assistant U. S. Attorney Brandi Russell prosecuted this case.
Balyo Scheduled to Plead Guilty to Federal ChargesRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick A. Miles, Jr. announced today that John Richard Balyo, 35, of Grand Rapids, is scheduled to plead guilty to federal charges related to child sexual exploitation. On July 23, 2014, the U.S. Attorney’s Office filed a two-count felony information. Count One charges Balyo with sexually exploiting a 12-year-old boy by using the child to create pornographic images. Count Two charges Balyo with possessing child pornography images. On July 24, 2014, a plea agreement was filed in the case. The plea agreement provides that Balyo will plead guilty to both counts of the felony information and agrees to forfeit computers, photographic equipment, and material used to sexually abuse or exploit children. In exchange, the U.S. Attorney’s Office will not seek additional charges from a federal grand jury. The arraignment and entry of the guilty plea is scheduled for July 29, 2014, at 10:00 a.m. before U.S. Magistrate Judge Ellen S. Carmody.
The plea agreement provides that Balyo will face a mandatory minimum sentence of 15 years and could be sentenced to a combined maximum sentence of 50 years. U.S. District Judge Robert Holmes Bell will determine the final sentence at a date to be scheduled.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney's Office; county prosecutor's offices; the Michigan State Police Internet Crimes Against Children task force (ICAC); the West Michigan Based Child Exploitation Task Force (WEBCHEX); and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
The Homeland Security Investigations, in cooperation with the Michigan State Police ICAC, Battle Creek Police Department, Kalamazoo Department of Public Safety, and Kent County Sheriff’s Department investigated the case. Assistant U.S. Attorney Tessa K. Hessmiller is prosecuting the case.
Balyo has been scheduled to plead guilty but has not yet entered a guilty plea in court. The charges in the felony information are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
END
Baltimore Felon Exiled to 10 Years in Prison for Possessing A Gun in Connection with Drug TraffickingRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced James Arwine, age 36, of Baltimore, Maryland, today to 10 years in prison, followed by three years of supervised release, for conspiracy to use a firearm during and in relation to a drug trafficking crime.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to Arwine’s plea agreement, on September 21, 2012, a detective with the Baltimore Police Department was in a covert location and saw James Arwine and Nathanial Hickman enter an alley. The detective observed what appeared to be a hand to hand transaction drug transaction by other individuals while Arwine and Hickman seemed to be acting as lookouts for law enforcement. The detective changed locations in an attempt to determine the drug stash location.
The detective saw Arwine and Hickman remove items from a vehicle and walk back into the alley to a dumpster. Hickman removed a black handgun from his waistband and placed it under the dumpster. Arwine then handed Hickman a second black handgun from his pocket which Hickman also placed under the dumpster. Arwine then gave Hickman a package, which he stashed with the guns.
Detectives moved in and arrested Arwine and Hickman. Two handguns, a loaded .357 handgun and a loaded .38 caliber handgun were recovered from under the dumpster, along with a package containing a bag of empty yellow top vials but no narcotics.
Arwine admitted that he possessed the gun and packaging material in relation to a conspiracy to distribute narcotics and that he was acting as a look-out for other individuals who were distributing narcotics.
Nathaniel Hickman, age 26, of Baltimore, pleaded guilty to his role in the conspiracy and Judge Bredar has scheduled his sentencing on August 19, 2014.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney H. Brandis Marsh, Jr., a cross-designated Baltimore City Assistant State’s Attorney assigned to Exile cases, who prosecuted the case.
Ashland Woman Sentenced to 32 Years in Prison for Labor Trafficking and Relate Crimes Involving Disabled WomanRead the Press Release
An Ashland, Ohio, woman was sentenced to 32 years in prison for holding a woman with cognitive disabilities and her child against their will and forcing the woman to perform manual labor for them, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.
Jessica L. Hunt, 32, was sentenced to 32 years in prison by U.S. District Judge Benita Pearson. Jordie L. Callahan, 28, was sentenced to 30 years in prison by Judge Pearson earlier this week.
Hunt and Callahan convicted in March following a three-week trial on one count each of conspiracy to violate laws; forced labor and acquiring a controlled substance by deception.
“Labor trafficking cases are significant, and in this case the conduct was reprehensible," Dettelbach said. "People need to understand that exploiting vulnerable people for their own greed is going to lead them to a jail cell. We remain humbled by the strength and dignity of the victims in this case.”
“Today’s sentence is another individual served a dose of justice for subjecting two others to years of inhumane treatment,” Special Agent in Charge Anthony said.
Daniel J. Brown, 35, and Dezerah L. McGuire (formerly Silsby), 33, also of Ashland, both previously pleaded guilty to related crimes are serving sentences in federal prison. Brown was sentenced to five years in prison and McGuire was sentenced to nearly four years in prison.
Callahan and Hunt used a combination of violence, threats, sexual assaults, humiliation, deprivation and monitoring to establish and continue a pattern of domination and control over their victims, identified only as S.E. and B.E., according to the court documents and trial testimony.
Their tactics included beating S.E., threating to beat to S.E. and B.E., taunting and threatening the victims with pit bulls and snakes, causing the victims to sleep in unsafe and unsanitary conditions, restricting B.E. and S.E.’s access to the bathroom, preventing them from eating regular and suitable meals and forcing S.E. to eat dog food and crawl on the floor while wearing a dog collar, according to the court documents and trial testimony.
According to court documents and trail testimony:
Callahan pointed a firearm at S.E.’s head and threatened to kill her if she did not perform the labor and services he and other conspirators commanded. Callahan also forced S.E. on multiple occasions to engage in sex acts with him and threatened that he and Hunt would kill S.E. if she told anyone about the forced sexual acts.
The conspiracy between Callahan, Hunt, McGuire and Brown took place between August 2010 and October 2012. The object of the conspiracy included holding S.E. in a condition of forced labor and involuntary servitude and intentionally causing painful injuries to S.E. so they could use the narcotic pain medications she was prescribed to satisfy their personal drug cravings.
Callahan and Hunt recruited S.E. and B.E. to live with them in their two-bedroom apartment in Ashland, knowing that S.E. suffered a traumatic brain injury that left her with a cognitive disability and that S.E. and B.E. received monthly public assistance payments.
In August 2011, McGuire, at the direction of Callahan and Hunt, smashed S.E.’s hand with a rock with such force that S.E. needed to go to the hospital emergency room. Callahan, Hunt and McGuire then forced S.E. to give them the narcotic pain pills and prescription for narcotic pain pills she obtained after being treated at the emergency room.
In December 2011, Callahan and Hunt injured S.E.’s back with such force that she needed medical treatment. Again, Callahan and Hunt forced S.E. to give them the narcotic pain pills and prescription for narcotic pain pills she obtained after being treated.
In March 2012, Callahan kicked S.E. in the hip with such force that she needed medical treatment. Callahan and Hunt forced S.E. to give them the narcotic pain pills and prescription for narcotic pain pills she obtained after being treated.
On multiple occasions between August 2010 and October 2012, Callahan and Hunt threatened S.E. and B.E. with serious physical harm, including death, if S.E. did not clean up the apartment, care for their numerous pit bull dogs, snakes and other reptiles, purchase items at the store and perform other labor and services ordered by the conspirators.
Callahan and Hunt used a video camera to monitor S.E. and B.E.’s activities and conversations in the apartment. They often forced S.E. to walk to the store to buy groceries, cigarettes, dog food and other items for Callahan, Hunt and Hunt’s four sons and to pay for these purchases with her public assistance card. They allotted S.E. only a brief time period to complete the shopping and warned her she was not allowed to speak with anyone while she was out. They frequently required B.E. to remain with them at the apartment while S.E. was out and threatened physical harm to B.E. and S.E. if S.E. broke any of their rules.
Callahan and Hunt also threatened to contact Ashland County Job and Family Services and have B.E. taken away if S.E. purchased any items at the store other than those they ordered or if she told anyone about their unlawful conduct.
In June 2011, after S.E. and B.E. had attempted to flee the apartment, Callahan and Hunt ordered Brown and McGuire to find S.E. and B.E. and bring them back to the apartment. Brown and McGuire lured S.E. and B.E. into their vehicle by promising to take them to Dairy Queen, only to deposit them afterwards back at the apartment.
On multiple occasions, Callahan and Brown locked S.E. and B.E. in a room with a window that was nailed shut and a door that had been locked from the outside.
In October 2011, Callahan and Hunt forced S.E. to hit her child while they recorded a video, and threatened to inflict much greater physical harm on both S.E. and B.E. if S.E. did not comply.
One month later, Callahan and Hunt again forced S.E. to strike B.E. while they captured a video recording of the staged incident on Callahan’s cell phone. Callahan and Hunt repeatedly threatened have B.E. taken away by showing the videos to authorities in order to secure S.E.’s compliance to the conspirators’ commands.
The case was prosecuted by Assistant U.S. Attorneys Chelsea Rice and Thomas E. Getz following an investigation by the FBI and Ashland Police Department, with assistance from the Ashland County Prosecutor’s Office.
Allen County, Kentucky, Residents Sentenced for Roles in Stealing Then Selling Hydrocodone Pills from A Scottsville, Kentucky, PharmacyRead the Press Release
– Former pharmacy employee and co-defendants admitted to conspiring with each other to sell and distribute the stolen hydrocodone pills worth $29,808
BOWLING GREEN, Ky. – The former employee of Stovall’s Prescription Shop, located in Scottsville, Kentucky, and two co-defendants were sentenced today in United States District Court, for their roles in a conspiracy to distribute the pain killer hydrocodone, that was stolen by the employee, and, for conspiring to sell over $5,000 of stolen hydrocodone, that had not been made available to consumers for retail purchase, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Lynn Harper Denton, Jeffery Clay Stinson and Katherine Virginia Rookstool, all from Allen County, Kentucky had pleaded guilty to various charges in a seven count federal indictment and were sentenced today by Chief Judge Joseph H. McKinley, Junior. Stinson was sentenced to 27 months in prison, forfeited $1,117.67 and ordered to serve three years of supervised release. Rookstool and Denton were both sentenced to two years’ probation with 8 months of home incarceration. Denton forfeited $5,718.51 and two vehicles; a 2002 Ford Mustang and a 2009 Pontiac G6. Rookstool forfeited $6,500. All three defendants jointly and severally are liable for $3,000 in restitution to Stovall’s Prescription Shop.
According to their plea agreements, between May 2012, and continuing to October 16, 2012, in Allen County, Kentucky, Denton, a former employee of Stovall’s Prescription Shop, conspired with Stinson and Rookstool, to knowingly possess and distribute hydrocodone. Denton admitted to stealing over 10,000 hydrocodone pills from Stovall’s Prescription Shop and selling them to Rookstool, who then sold the pills to Stinson. Stinson sold the pills to others.
Further, Denton admitted that while employed at Stovall’s Prescription Shop, between May 2012, and continuing through October 16, 2012, that she and Rookstool conspired to sell and distribute over $5,000 of stolen hydrocodone that had not been made available to consumers for retail purchase. This is a violation of 18 USC § 670 (theft of medical products) and is the first such prosecution in the Western District of Kentucky. The retail value of the stolen hydrocodone was $29,808.
This case was prosecuted by Assistant United States Attorney David Weiser and was investigated by the U.S. Food and Drug Administration's Office of Criminal Investigations, Owensboro domicile, the Allen County Sheriff’s Department, and the Scottsville Police Department.
Admitted Gang Member Sentenced for Federal Racketeering ChargesRead the Press Release
Armando Jose Velasquez, aka “Money,” 27, of East Chicago, Indiana, was sentenced today to serve 305 months in prison on federal racketeering charges relating to a Dec. 3, 2011, attempted murder.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David A. Capp for the Northern District of Indiana made the announcement. The sentence was imposed today by U.S. District Court Chief Judge Philip P. Simon.
According to court documents, on Dec. 3, 2011, Velasquez fired a gun into a car being driven by an 18-year-old resident of East Chicago, Indiana, and struck the victim three times. Velasquez believed that the victim was a rival gang member, but the victim was not actually a gang member and was not involved in any criminal activity. Velasquez had been previously convicted in the Lake County Superior Court in Indiana of voluntary manslaughter and sentenced to 12 years in prison in 2005 and was on state parole when he committed the offense.
Velasquez was part of a 24-defendant indictment alleging that members of the Imperial Gangsters committed 14 previously-uncharged homicides: 12 in East Chicago, Indiana, one in Hammond, Indiana, and one in Gary, Indiana. The indictment also charged a decade-long racketeering conspiracy that involved the attempted murder of 19 other victims and the large scale distribution of cocaine and marijuana.
Velasquez pleaded guilty on Jan. 10, 2014, to one count of conspiracy to participate in racketeering activity, attempted murder in aid of racketeering activity and a firearm offense relating to the Dec. 3, 2011, attempted murder. Velasquez is one of 22 defendants charged in the indictment to plead guilty. One defendant, Richard Reyes, was convicted by a jury of murder and conspiracy to commit racketeering activity on Jan. 24, 2014, and is scheduled to be sentenced on Sept. 30, 2014. The remaining defendant is scheduled for trial on Jan. 12, 2015.
An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the FBI, and the East Chicago Police Department, with assistance from the Gary Police Department, the Hammond Police Department and the Lake County High Intensity Drug Trafficking Area Program. This case is being prosecuted by Trial Attorney Bruce R. Hegyi of the Criminal Division’s Capital Case Section and Assistant U.S. Attorney David J. Nozick of the Northern District of Indiana.$80 Million Judgment Entered Against BNP Paribas for False Claims to the U.S. Department of AgricultureRead the Press Release
The Department of Justice announced today that an $80 million False Claims Act judgment was entered against BNP Paribas for submitting false claims for payment guarantees issued by the U.S. Department of Agriculture (USDA). BNP Paribas is a global financial institution headquartered in Paris.
“We will not tolerate the misuse of taxpayer funded programs designed to help American businesses,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “Companies that abuse these programs will be held accountable.”
The United States filed a lawsuit against BNP Paribas in connection with its receipt of payment guarantees under USDA’s Supplier Credit Guarantee (SCG) Program. The program provided payment guarantees to U.S.-based exporters for their sales of grain and other agricultural commodities to importers in foreign countries. The program encouraged American exporters to sell American agricultural commodities to foreign importers and covered part of the losses if the foreign importers failed to pay. The SCG Program regulations provided that U.S. exporters were ineligible to participate in the SCG Program if the exporter and foreign importer were under common ownership or control.
The judgment entered by the court resolves the government’s allegations that, from 1998 to 2005, BNP Paribas participated in a sustained scheme to defraud the SCG Program. In furtherance of the scheme, American exporters and Mexican importers who were under common control improperly obtained SCG Program export credit guarantees for transactions between the affiliated exporters and importers. In some cases, the underlying transactions were shams and did not involve any real shipment of grain. BNP Paribas accepted assignment of the credit guarantees from the American exporters, even though it knew that the affiliated exporters and importers were ineligible for SCG Program financing, and a BNP Paribas vice-president, Jerry Cruz, received bribes from the exporters. Beginning in April 2005, when the Mexican importers began defaulting on their payment obligations, BNP Paribas submitted claims to the USDA for the resulting losses.
On Jan. 20, 2012, Cruz pleaded guilty to conspiracy to commit bank fraud, mail fraud and wire fraud, and conspiracy to commit money laundering.
“I would like to thank the Department of Justice and the USDA General Counsel’s office for their collaboration in recovering $80 million under this judgment,” said Administrator of USDA’s Foreign Agricultural Service Phil Karsting. “This illustrates the importance USDA and this administration places on protecting the integrity of our programs.”
The resolution of this matter was the result of a coordinated effort among the Commercial Litigation Branch of the Justice Department’s Civil Division, the USDA, the USDA Office of Inspector General, the U.S. Postal Inspection Service and the Internal Revenue Service Criminal Investigation.
The lawsuit is captioned United States v. BNP Paribas SA, et al., No. 4:11 cv 3718 (S.D. Tex.).
23 July 2014
Van Buren County Man Sentenced for Selling Guns Without A LicenseRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick Miles announced today that David Grant Rainey, age 66, was sentenced to two years supervised release, with one year to be served in home confinement following his felony conviction for selling firearms without a license. Rainey was also fined $4,000.00. U.S. District Judge Janet T. Neff, who presided over the case, also ordered the forfeiture of Rainey’s 71 firearms and some 94,000 rounds of ammunition. And now as a convicted felon, Rainey is also prohibited from possessing firearms.
Rainey pled guilty to this charge on April 10, 2014. Selling firearms without a license is punishable by up to five years’ imprisonment and a maximum fine of $250,000.
The case resulted from a joint undercover investigation by the federal Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Van Buren County Sheriff’s Office. On August 13, 2013, ATF agents executed a search warrant, with the assistance of the Van Buren County Sheriff’s Office at Rainey’s farm in Bangor, Michigan, seizing 71 firearms – both handguns and long guns – along with 93,770 rounds of various types of ammunition.
END
Urbana Man Charged with Child Pornography OffensesRead the Press Release
Urbana, Ill. – Jim Lewis, U.S. Attorney for the Central District of Illinois, announced today that a federal grand jury in Peoria has returned an indictment charging Shannon Logan, 35, of the 1400 block of Scovill St., Urbana, Ill., with distribution, receipt, and possession of child pornography. The indictment, returned late yesterday, alleges that from Mar. 5, 2014, to May 30, 2014, Logan traded images, via the internet, of minors engaged in sexually explicit conduct and retained the images and videos he traded on computer storage devices.
Logan remains in law enforcement custody following his arrest on May 30, 2014, on state charges. In consultation with Champaign County State’s Attorney Julia Rietz, the U.S. Attorney’s office has adopted the matter at this time for prosecution of the alleged child pornography charges.
A date will be determined by the U.S. Clerk of the court for Logan to appear for arraignment before U.S. Magistrate Judge David G. Bernthal in federal court in Urbana.
If convicted of the federal offenses charged, the statutory penalty for each count of distribution and receipt of child pornography is a mandatory minimum of five years in prison to 20 years in prison and a term of supervised release of up to life following any term of imprisonment. If a defendant has a prior child sex abuse or child pornography conviction, the statutory penalty is not less than 15 years and up to 40 years in prison. For possession of child pornography, the penalty is up to 10 years in prison.
The charges are being investigated by the Urbana Police Department; U.S. Immigration and Customs Enforcement Homeland Security Investigations; and the Illinois Department of Children and Family Services. The case is being prosecuted by Assistant U.S. Attorney Elly Peirson with the cooperation of Champaign County State’s Attorney Julia Rietz.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys= Offices and the Criminal Division=s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
# # # #Twin Falls Man Admits to Unlawfully Possessing FirearmsRead the Press Release
BOISE – Ronnie M. Preal, 42, of Twin Falls, Idaho, pleaded guilty today in United States District Court to unlawfully possessing firearms, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, officers with the Twin Falls Police Department and Twin Falls County Sheriff’s Department served a search warrant at Preal’s residence on January 3, 2014. During the search, officers found a 10-gauge shotgun and a 9 millimeter pistol. Preal admitted that he possessed the firearms. Preal is prohibited from possessing firearms because he was previously convicted of manslaughter in California in 1996.
The charge is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release. The government is seeking forfeiture of the firearms.
Sentencing is set for October 20, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by the Twin Falls Police Department; Twin Falls County Sheriff’s Department; and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Preal is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Three Indicted for Federal Program FraudRead the Press Release
Jackson, Miss - Linda Harvey-Irvin, 62, of Jackson, Donald Walton, 51, of Vicksburg, and Markuntala Croom, 45, of Columbia, Mississippi have been indicted by a federal grand jury for conspiring to embezzle money from the Mississippi Gulf Coast Community Action Agency (“GCCAA”), an organization that receives more than $10,000 in federal funding each year, announced U.S. Attorney Gregory K. Davis and Acting FBI Special Agent in Charge Johnnie Sharp.
Harvey-Irvin, the former Director of the GCCAA and Director of the associated Head Start Program, is charged in one indictment with Donald Walton, owner and operator of Walton Construction, with conspiracy to commit federal program fraud by accepting and paying bribes. According to the indictment, Harvey-Irvin accepted money from Walton in exchange for awarding construction contracts. It is alleged that GCCAA paid Walton approximately $365,282.20 during the course of the conspiracy and Walton, in turn, paid Harvey-Irvin $31,000 in kickbacks for the awarding of those contracts.
A second indictment charges Harvey-Irvin and Markuntala Croom, owner and operator of Croom Management Services, with conspiracy to commit federal program fraud by accepting and paying bribes, and conspiracy to commit money laundering. According to the indictment, Harvey-Irvin accepted money from Croom in exchange for awarding contracts for consulting work. It is alleged that GCCAA paid Croom approximately $649,047 during the course of the conspiracy and Croom, in turn, paid Harvey-Irvin $91,961.49 in kickbacks for the awarding of those contracts. The indictment alleges that Croom and Harvey-Irvin conspired to launder the kickbacks with Croom making cash deposits into a bank account owned by Harvey-Irvin.
The maximum statutory penalties for the offenses charged 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 accepting and paying bribes, and 20 years in prison and a $500,000 fine per count for conspiracy to commit money laundering.
These cases were investigated by the Federal Bureau of Investigation and the Mississippi Office of the State Auditor - OIG. It will be prosecuted by Assistant U.S. Attorney Scott Gilbert.
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:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Three Defendants Arrested on Charges of Providing Material Support to a Foreign Terrorist OrganizationRead the Press Release
Three defendants were arrested today on charges of providing material support to al-Shabaab, a designated foreign terrorist organization that is conducting a violent insurgency campaign in Somalia. Two additional defendants are fugitives in Kenya and Somalia.
Assistant Attorney General John P. Carlin of the Justice Department’s National Security Division, U.S. Attorney Dana J. Boente for the Eastern District of Virginia, Assistant Director in Charge Valerie Parlave of the FBI’s Washington, D.C. Field Office and Special Agent in Charge Frank Montoya, Jr. of the FBI’s Seattle Field Office, made the announcement.
A superseding indictment was issued on June 26, 2014, by a federal grand jury in the Eastern District of Virginia, charging the defendants with one count of conspiracy to provide material support to a foreign terrorist organization and 20 counts of providing material support to a foreign terrorist organization. The indictment was unsealed after the following arrest warrants were executed today: Muna Osman Jama , 34, was arrested at her home in Reston, Virginia; Hinda Osman Dhirane , 44, was arrested at her home in Kent, Washington; Farhia Hassan was arrested at her residence in the Netherlands; Fardowsa Jama Mohamed is a fugitive in Kenya and the subject of a pending arrest warrant; and
Barira Hassan Abdullahi is a fugitive in Somalia and the subject of a pending arrest warrant.
If convicted, each defendant faces a maximum penalty of 15 years in prison on each count in the indictment.
The Harakat Shabaab al-Mujahidin, commonly known as al-Shabaab, is a terrorist group conducting a violent insurgency campaign in Somalia. In 2008, the U.S. government designated al-Shabaab as a foreign terrorist organization, and in February 2012, the leaders of al-Shabaab and the terrorist group al-Qa’ida publicly announced the merger of the two groups.
According to court records, defendants Muna Osman Jama and Hinda Osman Dhirane were the leaders of an al-Shabaab fundraising conspiracy operating in the United States, Kenya, the Netherlands, Somalia and elsewhere. Jama and Dhirane allegedly directed a network composed primarily of women who provided monthly payments that were coordinated, facilitated and tracked by the defendants to their conduits in Kenya and Somalia. According to court records, Jama was principally responsible for sending money to Kenya through her conduit, defendant Fardowsa Jama Mohamed, while Dhirane was primarily responsible for sending money to Somalia through her conduit, defendant Barira Hassan Abdullahi.
According to court records, the defendants would refer to the money they sent overseas as “living expenses,” and they repeatedly used code words such as “orphans” and “brothers in the mountains” to refer to al-Shabaab fighters, and “camels” to refer to trucks needed by al-Shabaab. The money transfers often were broken down into small amounts as low as $50 or $100, and the funds were intended for use by al-Shabaab insurgents operating in Somalia.
This case was investigated bythe FBI’s Washington, D.C. and Seattle Field Offices. The Justice Department’s Office of International Affairs also played an essential role in coordinating the arrests and searches with foreign authorities.
Assistant U.S. Attorney James P. Gillis and Trial Attorney Danya E. Atiyeh of the Counterterrorism Section of the Justice Department’s National Security Division are prosecuting the case in the Eastern District of Virginia. The U.S. Attorney’s Office in Seattle also provided assistance.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.Three Defendants Arrested on Charges of Providing Material Support to A Foreign Terrorist OrganizationRead the Press Release
ALEXANDRIA, Va. – Three defendants were arrested today on charges of providing material support to al-Shabaab, a designated foreign terrorist organization that is conducting a violent insurgency campaign in Somalia. Two additional defendants are fugitives in Kenya and Somalia.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John P. Carlin, Assistant Attorney General for National Security; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington, D.C. Field Office; and Frank Montoya, Jr., Special Agent in Charge of the FBI’s Seattle Field Office, made the announcement.
A superseding indictment was issued on June 26, 2014, by a federal grand jury in the Eastern District of Virginia, charging the defendants with one count of conspiracy to provide material support to a foreign terrorist organization and 20 counts of providing material support to a foreign terrorist organization. The indictment was unsealed after the following arrest warrants were executed today:
Muna Osman Jama, 34, was arrested at her home in Reston, Virginia;
Hinda Osman Dhirane, 44, was arrested at her home in Kent, Washington;
Farhia Hassan was arrested at her residence in the Netherlands;
Fardowsa Jama Mohamed is a fugitive in Kenya and the subject of a pending arrest warrant; and
Barira Hassan Abdullahi is a fugitive in Somalia and the subject of a pending arrest warrant.
If convicted, each defendant faces a maximum penalty of 15 years in prison on each count in the indictment.
The Harakat Shabaab al-Mujahidin, commonly known as al-Shabaab, is a terrorist group conducting a violent insurgency campaign in Somalia. In 2008, the U.S. government designated al-Shabaab as a foreign terrorist organization, and in February 2012, the leaders of al-Shabaab and the terrorist group al-Qa’ida publicly announced the merger of the two groups.
According to court records, defendants Muna Osman Jama and Hinda Osman Dhirane were the leaders of an al-Shabaab fundraising conspiracy operating in the United States, Kenya, the Netherlands, Somalia and elsewhere. Jama and Dhirane allegedly directed a network composed primarily of women who provided monthly payments that were coordinated, facilitated and tracked by the defendants to their conduits in Kenya and Somalia. According to court records, Jama was principally responsible for sending money to Kenya through her conduit, defendant Fardowsa Jama Mohamed, while Dhirane was primarily responsible for sending money to Somalia through her conduit, defendant Barira Hassan Abdullahi.
According to court records, the defendants would refer to the money they sent overseas as “living expenses,” and they repeatedly used code words such as “orphans” and “brothers in the mountains” to refer to al-Shabaab fighters, and “camels” to refer to trucks needed by al-Shabaab. The money transfers often were broken down into small amounts as low as $50 or $100, and the funds were intended for use by al-Shabaab insurgents operating in Somalia.
This case was investigated bythe FBI’s Washington, D.C. and Seattle Field Offices. The Justice Department’s Office of International Affairs also played an essential role in coordinating the arrests and searches with foreign authorities.
Assistant U.S. Attorney James P. Gillis and Trial Attorney Danya E. Atiyeh of the Counterterrorism Section of the Justice Department’s National Security Division are prosecuting the case in the Eastern District of Virginia. The U.S. Attorney’s Office in Seattle also provided assistance.
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-230.
Tennessee Man Indicted for Illicit Sex with a MinorRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Tennessee man was indicted by a federal grand jury today for enticing a minor victim to engage in illicit sexual activity in Lawrence County, Mo.
Dylan Wade Garcia, 28, of Huntingdon, Tenn., was charged in a three-count indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that Garcia used the Internet and a cell phone between June 9 and 26, 2014, to entice a minor under the age of 17 to engage in illicit sexual activity in Lawrence County. Garcia is also charged with one count of crossing state lines for the purpose of engaging in illicit sexual activity and one count of possessing child pornography.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Aurora-Marionville, Mo., Police Department and the Southwest Missouri Cyber Crimes Task Force.
St. Louis Area Man Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – RONALD L. ROBERTS pled guilty today to charges of mail and wire fraud in connection with his obtaining more than a million dollars from lenders in what he now admits was a loan fraud scheme.
According to court documents, Roberts solicited personal loans for a fictitious real estate transaction involving property in or around Poplar Bluff, Missouri, which Roberts claimed he owned and planned to sell to Wal-Mart. In some instances, Roberts claimed that the funds were needed to buy out the interests of family members, including his half-brother, who had purportedly asserted claims against the property; in others, he claimed that it was necessary to extinguish liens or perform environmental remediation; in yet others, he claimed that one or more parties associated with the transaction were demanding additional sums to close the transaction.
Roberts usually promised lenders either that their money would be returned in a matter of days or weeks at most, usually with considerable interest, or that they would receive a portion of the profits that Roberts expected to generate from the fictitious transaction. The rate of return promised by Roberts varied from 0% to at least as much as 180%, with terms varying between a couple of weeks and a few hours.
In truth, Roberts owned a piece of property, constituting less than ten (10) acres in size, in Neelyville, Missouri, more than ten (10) miles outside of Poplar Bluff, Missouri. At the time of Roberts’s representations, the property had a market value of less than $30,000 and was encumbered by a judgment against Roberts in excess of $13 million, making the property worthless to Roberts. During the scheme, Wal-Mart had not made any offer to purchase that property, nor did it have any present plans to develop additional land in or near Poplar Bluff, where there is already an existing Wal-Mart store. Instead, Roberts employed funds given to him by lenders for his own personal use.
Roberts, of Town and Country, MO, pled guilty to three felony counts of wire fraud and one felony count of mail fraud. He appeared before United States District Judge E. Richard Webber, in St. Louis. Sentencing has been set for October 16, 2014.
Each count of mail and wire fraud carries a maximum penalty of 20 years in prison and/or fines of up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case is being investigated by the Federal Bureau of Investigation and the U.S. Postal Inspection Service. Assistant United States Attorney Richard E. Finneran is handling the case for the U.S. Attorney’s Office.
Smith County Man Sentenced for Loan FraudRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 60-year-old Tyler, Texas man was sentenced to federal prison for making false statements on a loan application in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Bobby Gene Loggins pleaded guilty on Dec. 5, 2013 to making false statements to a bank and was sentenced to 51 months in federal prison on July 22, 2014 by U.S. District Judge Leonard E. Davis. Loggins was also ordered to pay restitution in the amount of $2,773,371.52.According to information presented in court, Loggins has been affiliated with Loggins Meat Company (LMC) in Tyler for more than 30 years. During most of that time, Loggins served as President and Chief Executive Officer of LMC. The company was founded in 1940 by Loggins’ father and operates as a wholesaler, retailer, and processor of meat and meat products. In March 2009, Loggins applied to Bank of Tyler for a revolving line of credit. In connection with the loan application, Loggins provided fraudulent financial information for LMC. Following approval of the loan, Loggins continued to provide false financial data when seeking advances on the credit line. Ultimately, LMC ceased operations in about August 2010.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Frank Coan.
San Jose Man Sentenced for A Copyright Infringement ConspiracyRead the Press Release
SACRAMENTO, Calif. — United States District Judge Kimberly J. Mueller sentenced Otto Godinez-Sales, 22, of San Jose, today to four years in prison for conspiracy to commit criminal copyright infringement, United States Attorney Benjamin B. Wagner announced.
According to court documents, Godinez-Sales maintained a number of warehouses in the San Jose area where he sold CDs and DVDs containing counterfeit music and movies. The music and movies on the CDs and DVDs were protected under United States copyright laws. In many instances, the copyrighted movies being trafficked by the defendants were still in theatrical release and not yet available for purchase in the home DVD market. Co-defendants Francisco Martinez-Cruz, 34, of Orland, and Soledad Garcia-Venegas, 32, of Orland, were customers at his San Jose warehouses, and they would transport the CDs and DVDs to sell at the Gonzalez Flea Market in Glenn County and the Marysville Flea Market in Yuba County. Over the course of the conspiracy, Martinez-Cruz and Garcia-Venegas were responsible for trafficking approximately 25,000 CDs or DVDs containing counterfeit copyrighted works. Martinez-Cruz was sentenced to 21 months in prison, and Garcia-Venegas was sentenced to 18 months in prison.
“This case is a testament to the success of multi-jurisdictional investigations and task force partnerships. A thorough investigation through collaboration revealed Godinez-Sales’ role in this scheme and identified his network of warehouse facilities. His criminal enterprise distributed thousands of counterfeit CDs and DVDs that were sold to unsuspecting customers throughout Northern California,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation’s Sacramento division. “Consumers are urged to question the authenticity of all high-demand products offered at significantly reduced prices. As in this case, such goods were counterfeit items produced by criminal enterprises who benefited from trusting consumer who were misled to believing the products were legitimate.”
This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento Valley Hi-Tech Crimes Task Force, which combines the efforts of 32 local, state, and federal law enforcement agencies in the Eastern District of California. Assisting in this case were the Sacramento Intellectual Property Rights Task Force, Rapid Enforcement Allied Computer Team of San Jose, Sacramento County Sheriff’s Office, Marysville Police Department, Glenn County Sheriff’s Office, and the Glenn County District Attorney’s Office. Assistant United States Attorney Matthew G. Morris is prosecuting the case.
Rogersville Business Owners Indicted for Selling $1 Million Worth of K2Read the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Rogersville, Mo., couple has been indicted by a federal grand jury for selling $1 million worth of synthetic marijuana, also known as K2, from their store.
Doy R. Case, 79, and his wife, Tressie L. Case, 67, both of Rogersville, were charged in a nine-count indictment returned under seal by a federal grand jury in Springfield, Mo., on Tuesday, July 22, 2014. That indictment was unsealed and made public today upon the arrests and initial court appearances of Doy and Tressie Case. They remain in federal custody pending a detention hearing on Friday, July 25, 2014.
The Cases own a business called Magic Dragon, 382 Redbud Street, Rogersville. According to court documents, the Cases received delivery of approximately 101,861 grams of synthetic cannabinoids between Sept. 15, 2010, and Nov. 13, 2012. They allegedly charged an average price of $10 per gram of synthetic cannabinoids; therefore, it appears they grossed approximately $1 million during this time frame. They allegedly deposited approximately $672,349 into bank accounts that they controlled.
The Cases were contacted by federal agents in August 2012, according to court documents, and told that the sale of synthetic cannabinoids was illegal. Agents gave the Cases the opportunity to voluntarily cease and desist, but they did not.
Court documents also allege that the Cases advertised their products to minor children. On at least seven occasions, they allegedly placed advertisements in high school yearbooks or with student organizations.
The federal indictment alleges that Doy and Tressie Case participated in a conspiracy between Sept. 15, 2010, and Nov. 13, 2012, to defraud the Food and Drug Administration and to defraud the public by falsely representing that a number of synthetic cannabinoid products were “herbal aromas,” “natural fragrances” or “incense” and “not for human consumption.” In reality, the indictment alleges, these substances were synthetic cannabinoids that contained compounds that were intended for human consumption as a drug. The Cases allegedly sent payments through the mail to purchase the illegal substances from several sources, which shipped their orders through a commercial carrier.
In addition to the mail fraud conspiracy, Doy and Tressie Case are charged together with participating in a conspiracy to distribute a controlled substance, three counts related to possessing a controlled substance with the intent to distribute and one count of maintaining a place for the purpose of storing and distributing a controlled substance.
The federal indictment also alleges that Doy and Tressie Case participated in a money-laundering conspiracy. According to the indictment, the Cases conspired to conduct financial transactions which involved the proceeds of unlawful activity (the mail fraud and drug-trafficking conspiracies). In addition to the conspiracy, Doy and Tressie Case are charged together in two counts of money laundering.
The indictment also contains a forfeiture allegation, which would require the Cases to forfeit to the government any property derived from the proceeds of the alleged offenses, including a money judgment of $672,349 related to the mail fraud conspiracy and a money judgment of $639,662 related to the drug-trafficking conspiracy.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Rogersville, Mo., Police Department, the Webster County, Mo., Sheriff’s Department, the Missouri State Highway Patrol, the Drug Enforcement Administration and IRS-Criminal Investigation.Rochester Woman Pleads Guilty to Social Security FraudRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Ethel Whitaker (a/k/a Ethel Gainey), 73, of Rochester, N.Y., pleaded guilty before U.S. District Judge Elizabeth A. Wolford, to theft of government funds. The charge carries a maximum penalty of 10 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Marisa J. Miller, who is handling the case, stated that the defendant obtained social security numbers in the names of both “Ethel Whitaker” and “Ethel Gainey.” Whitaker then used both social security numbers to apply for and receive social security program benefits, including Supplemental Security Income, Survivor Insurance and Retirement Insurance. As a result of her conduct, between January 1997 and April 2011, the defendant received social security benefits in the amount of $119,675, to which she was not entitled.
The plea is the culmination of an investigation on the part of Special Agents of the Social Security Administration – Office of the Inspector General, under the direction of Edward J. Ryan.
Sentencing is scheduled for October 9th, at 4:00 p.m. before Judge Wolford.Queen Anne’s County Drug Trafficker Exiled to 9 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Warren Troy Gibson, Jr., age 33, of Stevensville, Maryland, today to nine years in prison for conspiring to distribute narcotics.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Queen Anne’s County Sheriff R. Gery Hofmann III; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Colonel George F. Johnson IV, Superintendent of the Maryland Natural Resources Police; Annapolis Police Chief Michael A. Pristoop; Chief Charlie Rhodes of the Centreville Police Department; and Queen Anne’s County State’s Attorney Lance G. Richardson.
According to his plea agreement, from June through August 23, 2012, Gibson conspired with others to distribute and possess with intent to distribute cocaine hydrochloride and cocaine base in Queen Anne’s County, Maryland. Gibson helped distribute cocaine and other drugs, and made drug deals on the phone in cooperation with his coconspirators. On August 23, 2012, law enforcement officers executed a search warrant at a residence and stash location partly maintained by Gibson, and seized quantities of powder cocaine.
It was reasonably foreseeable to Gibson that between 500 grams and two kilograms of cocaine would be distributed to others during the conspiracy.
United States Attorney Rod J. Rosenstein commended the FBI, Queen Anne’s County Sheriff’s Office, Maryland State Police Maryland Natural Resources Police, Annapolis Police Department, Centreville Police Department and Queen Anne’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Michael C. Hanlon, who prosecuted this Organized Crime and Drug Enforcement Task Force case.
Probationary Buffalo Police Officer Sentenced for Growing and Selling MarijuanaRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that James Hamilton, Sr., 29, of Buffalo, N.Y., who was convicted of distribution of marijuana, was sentenced to 18 months in prison by Chief U.S. District Judge William M. Skretny.
“A uniform is only as good as the person who wears it,” said U.S. Attorney Hochul. “While the vast majority of police officers are role models for us all, this Office will not hesitate to act where, as here, a member of law enforcement violates his oath and breaks the law.”
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that on November 20, 2013, Hamilton, a probationary Buffalo Police Officer, sold a half pound of marijuana to a confidential source working with the Drug Enforcement Administration and the Erie County Sheriff’s Department. At the time of the sale, the defendant possessed his Buffalo Police issued .40 caliber Glock handgun.
Following the sale, the defendant was arrested and a search warrant was executed at his residence at 165 Floss Avenue in Buffalo. During the search, officers seized approximately 80 marijuana plants, three to four pounds of processed marijuana and a shotgun.
As a result, the defendant no longer works for the Buffalo Police Department.
The sentencing is the culmination of an investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard, and the Drug Enforcement Administration, under the direction of Jamie J. Hunt, Acting Special Agent in Charge, New York Field Division.Postal Inspector Indicted for Possession of Stolen MailRead the Press Release
SAN JOSE, Calif. — A federal grand jury in San Jose returned a three-count indictment against Quan Pham Howard, 51, of San Jose, charging him with possession of stolen U.S. mail, delay and destruction of U.S. mail, and possession with intent to distribute marijuana, United States Attorney Benjamin B. Wagner announced.
According to court documents, Howard was a Supervisory Postal Inspector working at the San Jose Processing and Distribution Center. On June 26, 2014, following an investigation and the execution of a search warrant at his house and office, Howard was arrested and charged with theft of mail.
According to the indictment, between April 9, 2012, and June 25, 2014, Howard unlawfully opened and secreted United States mail intended for various victims and including, among other things, quantities of prescription drugs. The indictment charges him with possessing a variety of items that had been stolen from the mail distribution center including: a gun scope, a silver bar, jewelry, coins, gift cards, a gun silencer, a Rolex watch and other items. Howard is also charged with possessing over 8 kilograms of marijuana with the intent to distribute.
This case is being tried in San Jose by the Eastern District of California. It is the product of an investigation by the United States Postal Service Office of Inspector General. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.
Howard is scheduled for arraignment on August 1, 2014. If convicted, Howard faces a maximum statutory penalty of five years in prison and a $250,000 fine for each count. 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.
Pittsburgh Man's Pistol Smuggling Plan Thwarted in DubaiRead the Press Release
PITTSBURGH - A Pittsburgh man pleaded guilty in federal court to a charge of smuggling goods from the United States, United States Attorney David J. Hickton announced today.
Tarek Mohamed Chok pleaded guilty yesterday to one count before Senior United States District Judge Maurice B. Cohill.
In connection with the guilty plea, the court was advised that on or about Sept. 18, 2012, Chok shipped a Springfield, Model 1911, .45 caliber pistol via FedEx from Pittsburgh, Pa., to Lebanon. The package containing the firearm was intercepted in Dubai. On the shipping declaration, Chok declared the contents of the package to be a “car lock, keys, and student documents.” When approached by agents of the Department of Homeland Security about his shipment, Chok initially lied and stated that the firearm in question, which records indicate was purchased by him, was “stolen” from him. Eventually, Chok admitted that he had, in fact, sent the firearm via FedEx, that he had lied to agents about it, and he misrepresented the contents of the package because he believed that if he had listed the true contents of the package, FedEx would not have sent the package.
Judge Cohill scheduled sentencing for Oct. 28, 2014, at 2:30 p.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Chok on bond.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
The Department of Homeland Security conducted the investigation that led to the prosecution of Chok.
Payette Man Sentenced for Purchasing A Firearm for Convicted FelonRead the Press Release
BOISE B Caleb Matthias Curtis, 29, of Payette, Idaho, was sentenced today to three years of probation for the unlawful transfer of a firearm, U.S. Attorney Wendy J. Olson announced. U.S. District Court Judge Edward J. Lodge also ordered Curtis to complete 60 hours of community service in lieu of a fine. Curtis was indicted by a federal grand jury in Boise on November 13, 2013.
According to the plea agreement, Curtis admitted that in October 2013, he agreed to purchase a .30-06 hunting rifle for his neighbor, David McAlister. Curtis knew that McAlister was prohibited from possessing firearms, due to a prior statutory rape conviction. Curtis used money provided to him by McAlister to purchase the rifle, which he then gave to McAlister. McAlister was sentenced on June 30, 2014, to three years of probation, credit for six months of jail served, and a $1,500 fine.
The case was investigated by the Payette County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Pawtucket Man Pleads Guilty to Manufacture and Distribution of Meth; Faces up to 100 Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Sean Costigan, 51, of Pawtucket, pleaded guilty today in federal court in Providence to charges of manufacturing and distributing methamphetamine. Costigan was arrested in January 2014 when DEA agents, DEA Drug Task Force agents, and Warwick and Newport Police detectives and officers executed a court authorized search of a Newport motel room rented by Costigan where they discovered materials being used for the manufacture and distribution of methamphetamine.
Costigan pleaded guilty to one count of manufacturing methamphetamine and four counts of distribution of methamphetamine, announced United States Attorney Peter F. Neronha, Warwick Police Chief Colonel Stephen M. McCartney, Newport Police Chief Gary T. Silva and Michael Ferguson, Acting Special Agent in Charge of the DEA’s New England Field Division.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Costigan admitted to the court that on four occasions, between October 25 and December 6, 2013, he sold methamphetamine to a Warwick undercover police officer for between $100 and $400 dollars. Three of the transactions occurred at a hotel in Warwick. The fourth transaction occurred at a hotel in North Smithfield.
According to information presented to the court, on January 16, 2014, DEA agents, DEA Drug Task Force agents, and Warwick and Newport Police detectives and officers executed a court authorized search of a Newport motel room rented by Costigan. Inside the room law enforcement discovered materials being used in the manufacture and distribution of meth. Members of the DEA Clandestine Laboratory Tactical Team dismantled the operation and seized multiple items associated with a methamphetamine manufacturing operation.
According to a plea agreement filed in this matter, Costigan and federal prosecutors stipulate and agree that Costigan maintained the room at the Newport motel for the purposes of manufacturing methamphetamine and that the meth lab created a substantial risk of harm to human life.
Costigan, who has been detained since his arrest on January 16, 2014, faces statutory penalties of up to 100 years in federal prison to be followed by up to lifetime supervised release, and a fine of up to $5,000,000 when he is sentenced on November 12, 2014.
The case is being prosecuted by Assistant U.S. Attorney Pamela E. Chin.
The DEA Drug Task Force is comprised of law enforcement agents and officers from DEA, Rhode Island State Police, and the Cranston, East Providence, Newport, Pawtucket, Providence, South Kingstown, Warwick and Woonsocket Police Departments.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Owner and Administrator of Miami Home Health Companies Pleads Guilty for Role in $74 Million Health Care Fraud SchemeRead the Press Release
A Miami resident who owned a home health care company and was the administrator of another home health care company pleaded guilty today for her participation in a $74 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Acting Special Agent in Charge Ryan Lynch of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office made the announcement.
Elsa Ruiz, 45, pleaded guilty today before U.S. District Judge Marcia G. Cooke in the Southern District of Florida to one count of conspiracy to commit health care fraud. Her sentencing is scheduled for Oct. 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.
The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the 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 .Ocean Springs Businessman Sentenced to Serve 18 Months in Prison for Federal Program FraudRead the Press Release
Hattiesburg, Miss - Scott Walker, 34, of Ocean Springs, was sentenced today by U.S. District Judge Keith Starrett to 18 months in prison for federal program fraud and 18 months for conspiracy to commit federal program fraud, announced U.S. Attorney Gregory K. Davis and Acting FBI Special Agent in Charge Johnnie Sharp. The two sentence terms will run concurrently and will be followed by a three year term of supervised release. Walker was also ordered to pay restitution in the amount of $390,000.
Walker previously pled guilty to creating and submitting a false invoice in the amount of $180,000 to the City of D’Iberville for payment of consulting services that were never performed in connection with a $3 million grant issued to the City of D’Iberville by the Mississippi Department of Environmental Quality. Walker also pled guilty to conspiring with his father, William Walker, to divert federal grant monies in a scheme that resulted in the federal grant monies being used to unlawfully purchase Scott Walker’s personal property in Ocean Springs, Mississippi.
This case was investigated by the Federal Bureau of Investigation with assistance from the Mississippi State Auditor’s Office. It was prosecuted by Criminal Division Chief John Dowdy, Assistant U.S. Attorney Jerry Rushing and Assistant U.S. Attorney Jay Golden.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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Non-Native Taos County Man Pleads Guilty to Federal Involuntary Manslaughter Charge Arising out of the Death of Taos Pueblo ManRead the Press Release
ALBUQUERQUE – Jorden Medina, 54, a non-Native man who resides in El Prado, N.M., pleaded guilty this morning to a federal involuntary manslaughter charge.
Medina was arrested on Dec. 2, 2013, on a criminal complaint charging him with killing a 28-year-old Taos Pueblo man on Nov. 30, 2013. Medina subsequently was indicted on Dec. 17, 2013, and charged with second degree murder.During today’s plea hearing, Medina pleaded guilty to an information charging him with involuntary manslaughter and admitted shooting the victim at a gas station located in Taos Pueblo. In his plea agreement, Medina stated that he was putting fuel into his truck when the victim physically attacked him, knocking him to the ground. Medina responded to the attack by retrieving a pistol from his truck and firing a single bullet at the victim and killed him.
Medina is in federal custody and will remain detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Medina faces a statutory maximum penalty of eight years in prison followed by a term of supervised release to be determined by the court.
The case was investigated by the Santa Fe office of the FBI and the Northern Pueblos Agency of the BIA’s Office of Justice Services, with assistance from the Taos Pueblo Department of Public Safety, Town of Taos Police Department and the New Mexico State Police. Assistant U.S. Attorney Paul H. Spiers is prosecuting the case.
Nine Sentenced for Filing Fraudulent BP Oil Spill ClaimsRead the Press Release
PENSACOLA, FLORIDA – Pamela C. Marsh, U.S. Attorney for the Northern District of Florida, announced today that nine individuals have been sentenced in federal court in the past two months for filing false claims with the Gulf Coast Claims Facility (GCCF) related to the 2010 BP oil spill in the Gulf of Mexico.
Sean D. Croft, 32, of Austin, Texas, was sentenced to 33 months in prison and ordered to pay $16,000 in restitution after pleading guilty to mail fraud and failure to appear for trial. He submitted a GCCF claim falsely alleging he was let go from his job at Hooters of Pensacola Beach due to the oil spill, when in fact he had worked at the Hooters on Bayou Boulevard in Pensacola and was terminated for disciplinary reasons. After being charged, Croft fled before trial and was arrested later in Texas.
Crystal C. Brown, 30, of Decatur, Georgia, pled guilty to wire fraud for filing a false GCCF claim stating she and her cleaning service lost income and employment due to the oil spill and submitting fraudulently altered employment verification forms and false income statements. Brown also pled guilty to aiding and abetting wire fraud for helping her co-defendant, Jarrad J. Knox, 29, of Fort Walton Beach, Florida, file a fraudulent GCCF claim stating he was an employee of Brown’s cleaning service and was laid off due to the oil spill, neither of which was true. Knox was sentenced to 21 months in prison and ordered to pay $7,900 in restitution and Brown was sentenced to five years of probation and ordered to pay $27,500 in restitution.
Kim Bonner, 54, of Pensacola, Florida, Angela M. Anderson, 32, of Tampa, Florida, Johnny G. Robinson, 52, of Pensacola, Alethea F. Snow, 41, of Fort Walton Beach, Bernisha M. McNabb, 57, of Fort Walton Beach, and Oran E. Dixon, 34, of Fort Walton Beach, pled guilty to conspiracy to file fraudulent GCCF claims involving an alleged construction company and cleaning service, both of which were not actually operating at the time of the spill. Robinson was sentenced to 21 months in prison and ordered to pay $56,300 in restitution, Snow was sentenced to 15 months in prison and ordered to pay $74,600 in restitution, and Dixon was sentenced to two weekends in jail as part of the terms of his five-year probation and ordered to pay $15,600 in restitution. Bonner, Anderson, and McNabb each received five years of probation and were ordered to pay $40,500, $71,900, and $43,200 respectively in restitution.
The cases resulted from investigations by the U.S. Secret Service and the Federal Bureau of Investigation and were prosecuted by Assistant U.S. Attorney Alicia Kim.
Newport Police Detective Captain Arrested for Distributing Controlled Substances and Possession of Firearm in Furtherance of Drug TraffickingRead the Press Release
GREENEVILLE, Tenn. -- James Finley Holt, 59, of Cosby, Tenn., a detective captain with the Newport Police Department, was arrested on July 23, 2014, in Newport by agents of the Tennessee Bureau of Investigation (TBI) and FBI. Holt is charged with illegal distribution of drugs and the possession of a firearm in furtherance of drug trafficking.
An initial appearance is scheduled for 10:00 a.m., Thursday, July 24, 2014, in U.S. District Court in Greeneville, before U.S. Magistrate Judge Dennis Inman.
Details of these charges are outlined in the criminal complaint and supporting affidavit on file as public records in the U.S. District Court for the Eastern District of Tennessee at Greeneville.
In summary, the affidavit alleges that Holt was selling drugs (hydrocodone and Xanax) or exchanging drugs for what had been represented to him as stolen property. On occasions he was distributing drugs from his official Newport Police Department vehicle. On one occasion, he told an individual working on behalf of law enforcement that he was going to pick up the drugs. Agents of the TBI followed him directly to the Newport Police Department and straight back to the location where Holt delivered the drugs.
Members of the public are reminded that these are only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
New Orleans Man, Gregory Stewart, Responsible for Killing Magnolia Shorty Pleads Guilty to Participating in Several Gang-related MurdersRead the Press Release
U.S. Attorney Kenneth Allen Polite, Jr. announced today that GREGORY STEWART, a/k/a “Rabbit,” 22, a resident of New Orleans, pled guilty before U. S. District Judge Nannette Jolivette Brown, to participating in a wide-ranging heroin conspiracy and several gang- related murders. Specifically, STEWART pled guilty to participating in the murder of Quelton Broussard, a/k/a “Gutter,” on April 12, 2010; the murder of Calvin Celestine, a/k/a “Plucky,” on February 6, 2011; and the murder of Gregory Keys and shooting of Kendrick Smothers on May 24, 2011. All of these murders were committed during the course of and as part of the conspiracy to distribute heroin. STEWART also pled guilty to participating in a conspiracy to use firearms in furtherance of his drug crimes and admitted that the conspiracy to distribute heroin involved 10 to 30 kilograms of heroin.
Court documents reflect that STEWART admitted to being one of the five individuals responsible for the high-profile murders of bounce-rapper Renetta Lowe, a/k/a “Magnolia Shorty” and Jerome Hampton, a/k/a “ManMan,” which occurred on December 20, 2010.
STEWART’s guilty plea to these murders and drug trafficking crimes was the culmination of a multi-year investigation of a heroin trafficking organization and violent gang that operated in an area known as the “G-Strip” in New Orleans. The G-Strip is an area encompassing the 1300 block of Gallier Street in the 9th Ward of New Orleans. Many of the members of the G-Strip were also affiliated with a gang known as the 39ers, an alliance of gang members from 3NG (Third and Galvez) and from the 9th Ward of New Orleans. To date, fifteen individuals related to the G-Strip/39ers organization have pled guilty to federal drug trafficking related offenses. Additionally, numerous members of 3NG/39ers are currently facing racketeering charges as a result of investigations done by the NOPD Multi-Agency Gang Unit (MAG) and the Orleans Parish District Attorney’s office.
For each of the murder counts, STEWART faces a maximum penalty of life imprisonment, a $250,000 fine, and up to 5 years of supervised release. On the drug conspiracy, STEWART faces a mandatory minimum of 10 years up to life imprisonment, a $10,000,000 fine, and at least 5 years of supervised release. As to the gun conspiracy, STEWART faces a maximum of 20 years imprisonment, a $250,000 fine, and up to 5 years of supervised release. Sentencing is scheduled for October 9, 2014.
“Today’s guilty plea represents another strike against those who terrorize our streets through gun violence and murder,” stated U.S. Attorney Polite. “As we have seen in the investigations that resulted in Mr. Stewart’s plea, a high level of collaboration amongst our local, state, and federal law enforcement agencies is absolutely essential to removing the most violent elements of our community from our streets.”
“This investigation serves as yet another example of law enforcement’s continued momentum in eradicating gang-related violence in the metropolitan New Orleans area,” stated Michael Anderson, Special Agent in Charge, Federal Bureau of Investigation, New Orleans Field Division.
The investigation is being conducted by the Federal Bureau of Investigation Violent Crime Task Force (FBI), which includes the New Orleans Police Department (NOPD), Jefferson Parish Sheriff’s Office, and the St. Tammany Parish Sheriff’s Office. The case is being prosecuted by Assistant United States Attorneys Sharan Lieberman, Maurice Landrieu, and Matthew Payne.
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New London Man Pleads Guilty to Federal Charge Related to 2012 HomicideRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, New London Police Chief Margaret Ackley and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that JOSE ROSADO, JR., also known as “Gugie,” 21, of New London, waived his right to indictment and pleaded guilty yesterday before U.S. District Judge Vanessa L. Bryant in Hartford to one count of committing a violent crime in aid of racketeering, and aiding and abetting the same. The charge stems from the September 2012 homicide of Javier Reyes, 36, of New London.
According to court documents and statements made in court, ROSADO was an associate of a criminal organization that distributed marijuana, cocaine and other narcotics from the “Green Garages,” a series of garage bays located as 12/14 Walker Street in New London. In the summer of 2011, the leader of the Green Garages organization was the intended victim of a murder-for-hire plot orchestrated by former members of his enterprise in an attempt to take over narcotics distribution at the Green Garages. It is alleged that the leader of the organization orchestrated the assault of Javier Reyes to maintain his leadership position. ROSADO and others were hired to carry out the assault of Reyes in exchange for cash.
On the evening of September 12, 2012, Reyes was stabbed multiple times outside of his apartment at 187 Huntington Street in New London, and died a short time later. He also had blunt force trauma to the back of his head.
Video surveillance at the time of the attack shows ROSADO, carrying a bat, and another individual, creeping toward Reyes and then running away from him about 15 seconds later.
ROSADO has been detained since his arrest on January 15, 2014. When he is sentenced, he faces a maximum term of imprisonment of 20 years.
The alleged leader of the Green Garages organization, the other individual seen in the surveillance video and the individual who allegedly recruited ROSADO have been indicted as a result of this investigation. U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. A trial is scheduled for February 2015.
This matter is being investigated by the New London Police Department and the Federal Bureau of Investigation, with the assistance of the Connecticut State Police’s Eastern District Major Crime Squad, the Connecticut Department of Correction, Homeland Security Investigations, the U.S. Secret Service and the New London State’s Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorneys Anthony Kaplan and Sarah Karwan, and Senior Assistant State’s Attorney Paul Narducci.
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(203) 821-3722 [email protected]New Hartford Man Indicted for Filing False Tax ReturnsRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York announces that a federal grand jury in Syracuse has returned an indictment charging DINO F. TUCCIARONE (56, of New Hartford, NY) with filing false tax returns with the Internal Revenue Service (“IRS”). If found guilty, the defendant faces a statutory maximum sentence of 3 years and a maximum fine of $100,000.00 per count of conviction.
The indictment alleges the defendant filed false Form 1040 tax returns with the IRS for tax years 2007 through 2009. Specifically, the indictment alleges that, under the penalty of perjury, the defendant falsely underreported his income for all three tax years.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
This prosecution resulted from an investigation conducted by the Internal Revenue Service Criminal Investigation Division, Syracuse, New York. 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).
Monroe County Man Pleads Guilty to Distributing Crack CocaineRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 31-year-old Stroudsburg man pleaded guilty today before Senior U.S. District Court Judge James M. Munley to distributing crack cocaine in the Monroe County area during a seven-month time period.
According to United States Attorney Peter Smith, the defendant, Dominic Darby, admitted to distributing and possessing with intent to distribute crack cocaine from October 2013 to April 30, 2014.
Darby was charged in a criminal Information filed by the United States Attorney on July 17, 2014, following an investigation by special agents of the Federal Bureau of Investigation and the Pennsylvania State Police.
Darby faces a potential maximum sentence of 20 years in prison and a $1 million fine. Judge Munley scheduled sentencing for October 23, 2014.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Missoula Man Gets Eight Years for Bakken Construction FraudRead the Press Release
MISSOULA - Jonathan Lee Oliver, a 41-year-old Missoula resident, was sentenced to 100 months in prison for diverting money he received from customers in eastern Montana, North Dakota, and other places, and using the money to buy himself a house, several vehicles, two jet skis, a luxury motor home, a diamond engagement ring, and various other items.
On February 25, 2014, Oliver pleaded guilty to wire fraud, money laundering and structuring. In an Offer of Proof filed by Assistant U.S. Timothy J. Racicot, the government told the court that in the Fall of 2010, Oliver rented an office and warehouse space and began conducting business under the fake name of Jon Walker. He solicited payments from several victims for the construction of steel buildings, primarily in eastern Montana and North Dakota, including in the area known as the Bakken. He entered into contracts with the victims, received millions of dollars in advance payments, and completed only one steel building. Rather than build the structures, Oliver used a substantial amount of the victims' money to buy personal assets, including a down payment on a house, several vehicles, two jet skis, a luxury motor home, a diamond engagement ring, and various other items. On multiple occasions, Oliver directed his employees to tell victims that a certain phase of the construction of their building was completed in order to induce the victims to send additional installment payments, when in fact the phase had not been completed and Oliver's business lacked the materials necessary to complete the project because so many of the funds had been diverted by Oliver for personal expenditures.
The counts that Oliver pleaded to involve money he took from a victim totaling over $130,000 and Oliver's purchase of a brand-new Subaru Tribeca Limited for $33,950. Oliver also pleaded guilty to withdrawing $9,950 in cash from the bank to avoid the bank's currency transaction reporting requirements.
The Bakken is a ripe environment for fraudulent activity and Jonathan Lee Oliver saw that. Project Safe Bakken has and will continue to prosecute fraudsters like Oliver, whose greed directly harms citizens seeking to invest and grow their money in legitimate business ventures," said Michael Cotter, U.S. Attorney for the District of Montana.
At sentencing, U.S. District Court Judge Donald Molloy entered a money judgment against Oliver in the amount of $6,468,186.33. The money judgment represents the forfeiture of substitute assets and corresponds to Oliver's ill-gotten gains. The judge also sentenced Oliver to three years supervised release following his prison sentence.
The prosecution was part of Project Safe Bakken, a cooperative effort between federal and state prosecutors and federal, state, local, and tribal law enforcement agencies in Montana and North Dakota. The investigation in this case was conducted by Federal Bureau of Investigation and the Internal Revenue Service.
Members of Howard Boys Gang Convicted of Rico ConspiracyRead the Press Release
Five Flint men were convicted of RICO conspiracy yesterday afternoon in the United States District Court in Flint, Michigan, United States Attorney Barbara L. McQuade announced. The convictions followed a seven week trial in front of the U.S. District Judge Mark A. Goldsmith.
McQuade was joined in the announcement by Genesee County Prosecutor David Leyton and Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office.
The five men were convicted of participating in the Howard Boys criminal enterprise which operated from 2002 to 2012. The Howard Boys enterprise was described during the trial as a street gang whose activities included murders, attempted murders and drug dealing on the south side of Flint.
“These convictions – both state and federal - should send an important message to this community that violence will not be tolerated. It will not be tolerated by the United States Attorney’s Office, the Genesee County Prosecutor’s Office and it will not be tolerated by the people of Flint. Despite immense pressure not to testify, many from this community assisted these cases by providing information and testifying. The jury’s verdict shows that their voices were heard,” McQuade said.
“For years, the violence committed by the defendants in this case was perpetrated on the city of Flint and surrounding areas in epidemic proportions,” said Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “Ultimately, the arrest, conviction and punishment of these individuals were due, in large degree, to the assistance provided by members of the community, demonstrating that it takes a collective effort—between federal, state and local law enforcement, along with a concerned citizenry—to take back our communities from violent offenders, one neighborhood at a time. The FBI will continue to work with its law enforcement partners and the community as a whole to aggressively combat violent crime.”
These convictions follow convictions which were obtained by the Genesee County Prosecutor’s Office in state court for additional members and associates of the Howard Boys.
“For the better part of a decade, the members of this gang reigned terror on the streets of Flint with their criminal enterprise," said Genesee County Prosecutor David Leyton. "But justice has prevailed and these defendants will now pay their debt to society behind closed walls, steel bars, and barbed wire fences," he said.
“We will continue to work together to punish those who have committed these crimes. Ultimately, however, we will not be successful unless we can prevent these crimes from happening in the first place,” McQuade added.
The case included crimes and investigations from as early as 2002. The federal case was investigated by the Genesee County Safe Streets Task Force, which is comprised of agents from the FBI and officers from the Flint Police Department and the Michigan State Police. Agents from the Bureau of Alcohol, Tobacco and Firearms (ATF) and the Drug Enforcement Administration (DEA) as well as officers from the Genesee County Sheriff’s Department participated in the investigation and trial as well.
In addition to the convictions for RICO conspiracy, the jury convicted the five defendants of the following crimes:
Alexandra Norwood
- Murder in aid of racketeering
Jatimothy Walker
- Murder in aid of racketeering
Jonathan Walker
- Murder in aid of racketeering
- Attempted murder in aid of racketeering
- Use and discharge of a firearm during and in relation to a crime of violence
Johnathan Oldham
- Murder in aid of racketeering
- Attempted murder in aid of racketeering – two counts
- Use and discharge of a firearm during and in relation to a crime of violence – three counts
- Distribution of cocaine base – six counts
- Possession of a short barreled firearm
- Possession of a firearm with an obliterated serial number
- Dealing in firearms without a license
Leon Gills
- Attempted murder in aid of racketeering – two counts
- Use and discharge of a firearm during and in relation to a crime of violence
The five men are facing up to life in prison for their convictions on the RICO conspiracy charge. Norwood, Oldham, and Jatimothy and Jonathan Walker face mandatory life in prison for their respective murder in aid of racketeering convictions.
In addition to those convicted at trial six men had previously pleaded guilty to RICO conspiracy in federal court. Those six were:
Declyde Brewton
Willie Chambers
Sean Cunningham
Markus Evans
Malcom Evans
Carvell GordonAmong those convicted in the Genesee County Circuit Court were:
Paki Bonner
- Felonious assault
- Felony firearm
Taron Brown
- Possession of a short barreled rifle
- Carrying a concealed weapon
- Possession of cocaine
Jamel Cheeks
- Second degree murder
- Felony firearm
Roderick Dudley
- Manslaughter
- Felon in possession of a firearm
James Elbert
- Delivery of cocaine
- Carrying a concealed weapon
Carvell Gordon
- Second degree murder
- Felony firearm
Shawn Gardner
- Second degree murder
Ricco Holmes
- Second degree murder – two counts
- Felony firearm – two counts
Rodrick Jackson
- Assault with intent to do great bodily harm
- Felony firearm
Charles Orr
- Delivery of marijuana
Terrell Roche
- First degree murder
- Felony firearm
- Second degree arson
Darryl Scott
- Second degree murder
Eddie Williams
- Manslaughter
The federal case was prosecuted by the Flint Branch of the United States Attorney’s Office.