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Monday 2 June 2014
Member of Largest Countefeit Goods Conspiracy Ever Charged Sentenced to 46 Months in PrisonRead the Press Release
NEWARK, N.J. – A member of a massive, international counterfeit goods conspiracy was sentenced today to 46 months in prison for his role in the scheme, U.S. Attorney Paul J. Fishman announced.
Ming Zheng, a/k/a “Uncle Mi,” 48, of New York, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with a conspiracy to launder money. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in Court:
From November 2009 through February 2012, Zheng’s co-defendants ran one of the largest counterfeit goods smuggling and distribution conspiracies ever charged by the Department of Justice. The defendants and others conspired to import hundreds of containers of counterfeit goods – primarily handbags, and footwear, and perfume – from China into the United States in furtherance of the conspiracy. These goods, if legitimate, would have had a retail value of more than $300 million.
Zheng was a money launderer who was introduced to undercover special agents (collectively, the UCs) by co-defendants who were running the counterfeiting operation. Conspirators obtained cash from the UCs, purportedly the proceeds of gambling and other unlawful activities. These other conspirators then provided the money to Zheng. For every $50,000 in cash the UCs provided, Zheng and others would return approximately $42,500 – via wire transfers from banks in China – into a bank account set up by the UCs. When other conspirators received money from the UCs to be laundered, one of the conspirators would then contact Zheng, who in turn contacted a Chinese-based conspirator, and transferred the money to locations in China. Then the money (less the laundering fee) was transferred from Fujian, China, to a bank in Guangzho, China, where it was subsequently withdrawn and physically transported via courier to a bank in Hong Kong. The final transfer was from the bank in Hong Kong to the UCs’ bank account. Zheng was therefore instrumental in each of the money laundering transactions – he received the cash from other conspirators and caused it to be transferred overseas in furtherance of the laundering process.
U.S. Attorney Fishman praised special agents of Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), under the direction of Special Agent in Charge Andrew M. McLees, and special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s sentencing.The government is represented by Assistant U.S. Attorneys Andrew Pak and Zach Intrater of the Computer Hacking and Intellectual Property section of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark and Nicholas Grippo of the U.S. Attorney’s Office in Trenton.
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Defense counsel: Stacey Van Malden Esq., Bronx, N.Y.Mccluskey Co-Conspirators Sentenced for Participating in Plot to Carjack and Murder Oklahoma CoupleRead the Press Release
ALBUQUERQUE – Tracy Allen Province, 46, and Casslyn Mae Welch, 47, were sentenced today for participating in a plot to carjack and murder a retired couple from Oklahoma in Aug. 2010. U.S. District Judge Judith C. Herrera of the District of New Mexico sentenced Province to five consecutive terms of life imprisonment without the possibility of release as required by his plea agreement. Judge Herrera imposed a 40-year prison sentence on Welch, but delayed imposing judgment for two weeks to permit the parties to submit briefs on a related issue.
The sentences were announced by Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Damon P. Martinez of the District of New Mexico, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, and New Mexico State Police Chief Pete N. Kassetas.
Province and Welch, and their co-defendant John Charles McCluskey, 49, were charged with numerous capital offenses in an indictment arising out of the Aug. 2, 2010, carjacking and murders of Gary and Linda Haas, both 61, in Quay County, N.M. On Jan. 20, 2012, Province and Welch entered guilty pleas to numerous crimes arising out of the carjacking and murder of Mr. and Mrs. Haas, and agreed to testify during McCluskey’s capital trial.
On Oct. 7, 2013, the jury found McCluskey guilty on all counts of the indictment after an eight-week trial, and found McCluskey eligible for the death penalty on Nov. 5, 2013, following a three-week proceeding. The McCluskey capital trial concluded on Dec. 11, 2013, when the jury said it was unable to reach a unanimous verdict on the death penalty, thus requiring that McCluskey be sentenced to life in prison. McCluskey’s sentencing hearing is scheduled for tomorrow.
The evidence presented during the capital trial established that, on July 30, 2010, McCluskey and Province escaped from an Arizona state prison with Welch’s aid. On Aug. 2, 2010, McCluskey, Province and Welch carjacked Mr. and Mrs. Haas and their pickup truck and camping trailer at a rest stop off Interstate 40 in Quay County. McCluskey shot and killed Mr. and Mrs. Haas in the trailer in a remote location east of Tucumcari, N.M. The three confederates then drove the Haases’ truck and trailer to a remote area in Guadalupe County, N.M., where they unhitched, burned and abandoned the trailer with the Haases’ remains still inside. On Aug. 4, 2010, the New Mexico State Police discovered the burned remains of Mr. and Mrs. Haas in the trailer. Province was arrested in Wyoming on Aug. 9, 2010, and McCluskey and Welch were arrested in Arizona on Aug. 19, 2010, following a nationwide, multi-agency manhunt.The case was investigated by Albuquerque and Phoenix Divisions of the FBI and the New Mexico State Police and was prosecuted by Assistant U.S. Attorney Linda Mott and former Assistant U.S. Attorney Gregory J. Fouratt of the District of New Mexico, and Trial Attorney Michael S. Warbel of the Criminal Division’s Capital Case Section, with assistance from Kristopher N. Houghton, a contract attorney employed by the U.S. Attorney’s Office.
Massachusetts Man Charged with <br /> Computer Hacking and Credit Card TheftRead the Press Release
A Massachusetts man was charged today with allegedly hacking into computer networks around the country – including networks belonging to law enforcement agencies, a local police department and a local college – to obtain highly sensitive law enforcement data and alter academic records. He also obtained stolen credit, debit and payment card numbers.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, United States Attorney Carmen M. Ortiz of the District of Massachusetts, Special Agent in Charge Vincent Lisi of the FBI’s Boston Division and Colonel Timothy P. Alben of the Massachusetts State Police made the announcement.
Cameron Lacroix, 25, of New Bedford, Massachusetts, was charged by a criminal information with two counts of computer intrusion and one count of access device fraud.
According to allegations in the information, b etween May 2011 and May 2013, Lacroix allegedly obtained and possessed payment card data for more than 14,000 unique account holders. For some of these account holders, Lacroix also obtained other personally identifiable information, including the account holders’ full names, addresses, dates of births, social security account numbers, email addresses, bank account and routing numbers, as well as listings of merchandise the account holders had ordered.
In September 2012, Lacroix allegedly hacked into a computer server operated by a local Massachusetts police department and accessed an e-mail account belonging to the chief of police. From August 2012 through November 2012, Lacroix is accused of repeatedly hacking into law enforcement computer servers containing sensitive information including police reports, intelligence reports, arrest warrants, and sex offender information. Lacroix is also accused of using stolen credentials to access and change information in the servers of Bristol Community College on multiple occasions between September 2012 and December 2013.
The case was investigated by the FBI Boston Division Cyber Task Force. The case is being prosecuted by Senior Trial Attorney Mona Sedky from the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Adam Bookbinder of the District of Massachusetts. The Department of Justice and the U.S. Attorney’s Office would like to thank Bristol Community College for its cooperation during this investigation.Man Who Viewed Child Pornography in Fresno Library Sentenced to 8 Years in PrisonRead the Press Release
FRESNO, Calif. —Victor Duane Smith, 59, of Fresno, was sentenced today to eight years in prison by Judge Anthony W. Ishii, to be followed by 15 years of supervised release, for receiving child pornography, United States Attorney Benjamin B. Wagner announced. Smith was also ordered to pay $5,000 to a child shown in five images he received.
According to court documents, in July 2013, law enforcement began tracking an individual who was using the Fresno County Public Library’s public wireless system to view child pornography through a file-sharing program. Investigators were able to watch Smith in the library while he used the program. Smith later confessed to the offense.
“The sentence is a stern reminder about the consequences facing those who use the Internet to sexually exploit innocent children,” said Mike Prado, resident agent in charge of Homeland Security Investigations (HSI) Fresno. “The fact this defendant was accessing child pornography in a public place where young people and their families congregate makes his actions even more disturbing. HSI will continue to work with its law enforcement partners here in the Fresno area and across the country to target child sexual predators who mistakenly believe they can act with impunity in cyberspace.”
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Central California Internet Crimes Against Children Task Force, and the Fresno County Sheriff’s Office. Assistant United States Attorney Michael G. Tierney is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Man Charged with Computer Hacking and Credit Card TheftRead the Press Release
BOSTON – A New Bedford man was charged today with hacking into computer networks around the country – including networks belonging to law enforcement agencies, a local police department and a local college – and obtaining highly sensitive law enforcement data and altering academic records. He also obtained stolen credit, debit and payment card numbers.
Cameron Lacroix, 25, was charged with two counts of computer intrusion and one count of access device fraud. Lacroix has agreed to plead guilty. If the plea agreement is accepted by the court, Lacroix will be sentenced to four years in prison to be followed by three years of supervised release.
It is alleged that, between September 2012 and November 2013, Lacroix who was enrolled as a student at Bristol Community College (BCC), repeatedly hacked into BCC’s computer servers and used stolen log-in credentials belonging to three instructors, to log into the web-based grade recording system, where he changed course grades for himself and two other BCC students.
In addition, in September 2012, Lacroix allegedly hacked into a computer server operated by a local Massachusetts police department and accessed an e-mail account belonging to the chief of police. From August 2012 through November 2013, Lacroix is accused of repeatedly hacking into law enforcement computer servers containing sensitive information including police reports, intelligence reports, arrest warrants, and sex offender information.It is further alleged that between May 2011 and May 2013, Lacroix obtained and possessed payment card data for more than 14,000 unique account holders. For some of these account holders, Lacroix also obtained other personally identifiable information, such as the account holders’ full names, addresses, dates of births, social security account numbers, email addresses, bank account and routing numbers, as well as listings of merchandise the account holders had ordered.
United States Attorney Carmen M. Ortiz; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Vincent Lisi, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Division; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police made the announcement.
The case was investigated by the FBI Boston Division Cyber Task Force. The U.S. Attorney’s Office would also like to acknowledge the cooperation and assistance of Bristol Community College.
The case is being prosecuted by Assistant U.S. Attorney Adam Bookbinder, Chief of Ortiz’s Cyber Crime’s Unit and Senior Trial Attorney Mona Sedky from the Criminal Division’s Computer Crime and Intellectual Property Section.
Linn County Men Plead Guilty to Federal Firearms ViolationsRead the Press Release
KANSAS CITY, KAN. – Two Linn County men pleaded guilty Monday to federal firearms violations, U.S. Attorney Barry Grissom said.
Barry Walker, 70, Mound City, Kan., pleaded guilty to one count of allowing a convicted felon to possess firearms and ammunition. Jeffrey Nicholas, 47, Pleasanton, Kan., pleaded guilty to one count of possessing firearms and ammunition after a felony conviction.
In their pleas, they admitted that Nicholas, who had been convicted of a felony drug charge in Clark County, Nevada, worked selling firearms at Big Bear’s Gifts & Pawn Shop in Pleasanton, which was owned by Walker. Walker is the former Linn County Sheriff.
The Bureau of Alcohol, Tobacco, Firearms and Explosives first became aware Walker was allowing Nicholas to handle firearms during a compliance inspection at Big Bear’s Gifts & Pawn Shop on Nov. 10, 2011. Walker was counseled about the violation and agreed to prevent Nicholas from having any further access to firearms.
During another compliance inspection at Big Bear’s in November 2012, Walker told investigators that Nicholas had not handled any firearms transactions and that Walker conducted all transactions related to firearms. Investigators obtained evidence, however, that Nicholas had conducted transactions involving firearms. They learned that Nicholas would handle firearms transactions and then leave the forms for Walker to sign.
At various times from May 11, 2013, to Aug. 14, 2013, undercover ATF officers purchased firearms from Nicholas at Big Bear’s.
Sentencing will be scheduled at a later date. The defendants face a maximum penalty of 10 years in federal prison and a fine up to $250,000.
Grissom commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Sheri McCracken for their work on the case.
Las Vegas Man Sentenced to 180 Months for Transportation of A Minor with Intent to Engage in Criminal Sexual ActivityRead the Press Release
TUCSON, Ariz. – On June 2, 2014, Keith Deshawn Anderson, 39, of Las Vegas, Nev. was sentenced by Chief U.S. District Judge Raner C. Collins to 180 months imprisonment followed by five years of supervised release after having been found guilty by a federal jury on Nov. 12, 2013, of four counts of transportation of a minor with intent to engage in criminal sexual activity
The evidence at trial showed that the defendant transported a female minor from Arizona to Nevada multiple times for several months during 2011 and 2012 with the intent that the minor engage in criminal sexual activity with the defendant.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Sierra Vista Police Department. The prosecution was handled by Nicole Savel and Karen Rolley, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-12-0914-TUC-RCC (CRP)
RELEASE NUMBER: 2014-031_AndersonFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Katy Sisters Arrested in Scheme to Defraud RetailerRead the Press Release
HOUSTON – Sandra Johnson, 47, and her sister, Natalie Jeng, 41, both of Katy, have been charged along with two others in a scheme to defraud home décor retailer Garden Ridge Pottery of more than $2 million, announced United States Attorney Kenneth Magidson.
Johnson surrendered to federal authorities this morning and is expected to appear before U.S. Magistrate Judge Frances Stacy at 2:00 p.m., along with Darlene Drummer, 42, of Fresno, who was arrested Thursday, May 29. Jeng surrendered Friday, May 30, and appeared before U.S. Magistrate Judge Nancy Johnson who ordered her release upon posting bond. A fourth defendant, Niesha Hall, 35, of Houston, is also charged but not as yet in custody. A warrant remains outstanding for her arrest.
According to the allegations, Johnson was employed as a claims manager by Garden Ridge and was responsible for reviewing and approving payment for injury claims filed against the retailer by its customers - commonly referred to as “slip and fall” claims. Jeng was allegedly employed as a claims adjuster at Hammerman & Gainer Inc., a third-party administrator hired by Garden Ridge to administer and investigate claims.
According to court documents, Johnson, Jeng and others allegedly conspired to submit false injury claims for which Johnson and Jeng would authorize payment. The fraudulent settlement proceeds would then be split amongst the alleged injury victim, Johnson, Jeng as well as other members of the conspiracy, according to the charges. In all, 26 allegedly false claims were filed against Garden Ridge which resulted in the issuance of $2,063,436 in settlement proceeds. The majority of the settlement payments were made via automated clearing house (ACH) deposits, an electronic payment method which generally involves the use of interstate wire communication facilities, according to the complaints.
Drummer and Hall, in addition to allegedly filing false claims against Garden Ridge in their own names, are also alleged to have recruited other complicit claimants into the scheme. According to court documents, when the claimants received their settlements, Drummer and Hall allegedly assisted in laundering the proceeds by directing the claimants to make kickbacks in the form of cash or cashier’s checks to other members of the conspiracy.
Johnson, Jeng and Drummer are also alleged to have traveled together on Disney Cruise Lines vacations during the time the fraud was being perpetrated.
Johnson was charged with wire fraud and money laundering in a criminal complaint filed April 14, 2014. Jeng, Drummer and Hall were each charged with conspiracy to launder funds in a criminal complaint filed May 23, 2014. If convicted of any of the charges, each woman faces up to 20 years in federal prison.
The investigation leading to the charges was conducted by Internal Revenue Service – Criminal Investigation and the U.S. Postal Inspection Service with the assistance of the Houston Police Department. Assistant United States Attorney Jay Hileman is prosecuting.
KC Man Pleads Guilty to Phone Call Hoax with False Threat to Contaminate Water SupplyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to making a hoax telephone call with a false threat to contaminate the public water supplies of Kansas City, Mo., St. Louis, Mo., Wichita, Kan., and Topeka, Kan.
Manuel Garcia, 70, of Kansas City, pleaded guilty before U.S. District Judge Dean Whipple to the charge contained in a Nov. 15, 2013, federal indictment.
By pleading guilty today, Garcia admitted that he made three threatening telephone calls in October 2013 in which he claimed there was a threat to contaminate the public water supply of Kansas City, St. Louis, Wichita and Topeka. Garcia admitted that he knew the threats were false when he made the calls, and that the threats were conveyed in a way that it was reasonable to believe the information.
Garcia called the Kansas City, Mo., Police Department 9-1-1 Emergency Tips Hotline on Oct. 15, 2013. Garcia claimed that the water supplies of Kansas City, St. Louis, Wichita, and Topeka, Kansas would be contaminated in the next 10-15 days with an unknown substance contained in four 55-gallon tanks. The 9-1-1 operator asked Garcia to identify himself and Garcia hung up. On the same day, Garcia called the Alcohol, Tobacco and Firearms Joint Support Operations Center in Washington, D.C., with the same threat. Garcia called the Kansas City, Mo., Police Department 9-1-1 Emergency Tips Hotline again on Oct. 22, 2013.
An FBI agent recognized Garcia’s voice from a previous case in which Garcia pleaded guilty to making threats by telephone and placing a hoax explosive device outside the federal courthouse. Garcia was sentenced to 18 months in federal prison in that prior case. Garcia’s residence at a transition house was close to the exact location the cellular tower system identified as the vicinity from which one of the calls originated.
Under federal statutes, Garcia is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Brian Casey. It was investigated by the FBI.
Justice Department to Monitor Elections <br /> in California and New MexicoRead the Press Release
The Justice Department announced today that it will monitor elections on June 3, 2014, in Alameda and Napa Counties, California, and Cibola County, N.M., to ensure compliance with the Voting Rights Act and other federal voting rights statutes. The Voting Rights Act prohibits discrimination in the election process on the basis of race, color or membership in a minority language group.
In Alameda County, the department will assign federal observers from the U.S. Office of Personnel Management (OPM) to monitor polling place activities based on a court order. The observers will watch and record activities during voting hours at polling locations in this jurisdiction, and Civil Rights Division attorneys will coordinate the federal activities and maintain contact with local election officials.
In addition, department personnel will monitor polling place activities in Napa and Cibola Counties. Civil Rights Division attorneys will coordinate federal activities and maintain contact with local election officials.
Each year, the department deploys federal observers from OPM and departmental staff to monitor elections across the country. To file complaints about discriminatory voting practices, including acts of harassment or intimidation, voters may call the Voting Section of the Civil Rights Division at 1-800-253-3931.
Visit this website for more information about the Voting Rights Act and other federal voting laws.Joe Usher Pleads Guilty to Federal Tax OffensesRead the Press Release
Former Owner of Knoxville Employee Leasing Company Faces Potential Prison Term and Obligation to Pay Restitution
KNOXVILLE, Tenn. – Zebbie Joe Usher, III, 46, of Knoxville, Tenn., pleaded guilty on June 2, 2014, in U.S. District Court for the Eastern District of Tennessee at Knoxville, to a two-count information charging him with tax evasion and conspiracy to commit tax evasion. The Honorable Pamela L. Reeves, U.S. District Judge, scheduled a status conference for Sept. 15, 2014, at which time a date for sentencing will be scheduled.
Usher faces a possible prison term of up to 10 years, along with up to $500,000 in fines and the requirement to pay more than $29 million in restitution to the Internal Revenue Service (IRS).
Usher was previously the chief executive officer of Service Provider Group and was involved in the management of a number of companies, known as professional employer organizations (PEOs), which were engaged in the employee leasing and payroll processing business. According to a plea agreement on file with the U.S. District Court in Knoxville, the PEOs collected federal payroll taxes from employees and were required to turn over those funds to the IRS in a timely manner. However, instead of doing so, Usher and his unnamed co-conspirators used the funds for other company expenses and personal expenditures. In an attempt to avoid discovery of their nonpayment of payroll taxes, Usher and his co-conspirators submitted false documents to the IRS.
Usher’s guilty plea is the result of an ongoing investigation by the IRS and Federal Bureau of Investigation. Assistant United States Attorney Frank M. Dale, Jr. represents the United States.
Joe Usher Pleads Guilty to Federal Tax OffensesRead the Press Release
Former Owner of Knoxville Employee Leasing Company Faces Potential Prison Term and Obligation to Pay Restitution
KNOXVILLE, Tenn. – Zebbie Joe Usher, III, 46, of Knoxville, Tenn., pleaded guilty on June 2, 2014, in U.S. District Court for the Eastern District of Tennessee at Knoxville, to a two-count information charging him with tax evasion and conspiracy to commit tax evasion. The Honorable Pamela L. Reeves, U.S. District Judge, scheduled a status conference for Sept. 15, 2014, at which time a date for sentencing will be scheduled.
Usher faces a possible prison term of up to 10 years, along with up to $500,000 in fines and the requirement to pay more than $29 million in restitution to the Internal Revenue Service (IRS).
Usher was previously the chief executive officer of Service Provider Group and was involved in the management of a number of companies, known as professional employer organizations (PEOs), which were engaged in the employee leasing and payroll processing business. According to a plea agreement on file with the U.S. District Court in Knoxville, the PEOs collected federal payroll taxes from employees and were required to turn over those funds to the IRS in a timely manner. However, instead of doing so, Usher and his unnamed co-conspirators used the funds for other company expenses and personal expenditures. In an attempt to avoid discovery of their nonpayment of payroll taxes, Usher and his co-conspirators submitted false documents to the IRS.
Usher’s guilty plea is the result of an ongoing investigation by the IRS and Federal Bureau of Investigation. Assistant United States Attorney Frank M. Dale, Jr. represents the United States.
Illinois Man Sentenced for Assaulting Federal AgentsRead the Press Release
St. Louis, MO – EXCEDRIN COLLINS was sentenced to 84 months in prison for forcibly assaulting agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives with an automobile.
According to court documents, on May 20, 2013, in the City of St. Louis, Collins forcibly assaulted agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), while the agents were engaged in the performance of their official duties, and in the commission of the assault, Collins used a deadly or dangerous weapon, that is, an automobile.
In the days leading up to May 20, 2013, an ATF undercover agent arranged to meet with Collins’ co-defendants Lonnell Wilson and Retonio Dickerson to purchase a firearm for $500.On May 20, 2013, Collins drove Wilson and Dickerson to meet the undercover agent in a white Ford Expedition, a full-sized sport utility vehicle. Collins, Wilson and Dickerson met the undercover agent at Sherman Park, in North St. Louis City.
With Collins and Dickerson present, Wilson showed a Browning 9mm semi-automatic pistol to the undercover agent. The undercover agent, Wilson and Dickerson discussed the purchase of the Browning 9mm pistol. The undercover agent handed Wilson $500 in recorded ATF buy money. Wilson handed the money to Dickerson, who counted the money and returned it to Wilson. Dickerson then grabbed the Browning 9mm pistol away from the undercover agent. Collins, Wilson and Dickerson fled to the Ford Expedition. The entire transaction was audio and video recorded.Wilson pointed and discharged the Browning 9mm pistol at the undercover agent, who was engaged in the performance of his official duties. Collins, Wilson and Dickerson then fled in the Ford Expedition, with Collins driving.
While exiting Sherman Park, Collins knowingly and intentionally rammed the Ford Expedition into an ATF vehicle, in which three ATF agents were responding to the scene of the assault. The ATF agents were engaged in the performance of their official duties. The ATF vehicle sustained significant damage.
Collins fled from pursuing ATF agents at speeds exceeding 100 miles per hour on busy residential streets, which recklessly created a substantial risk of death or serious bodily injury to other persons.
Collins, Madison, IL, pleaded guilty on January 9, 2014, to one felony count of forcibly assaulting an agent with a deadly or dangerous weapon. He appeared today for sentencing before United States District Judge Catherine D. Perry.
This case was investigated by ATF. Assistant United States Attorney Cristian M. Stevens is handling the case for the U.S. Attorney’s Office.
Gulfport Man Sentenced to Prison for Attempting to Evade TaxesRead the Press Release
Gulfport, Miss – Jeffrey Jerome Isabell, 51, of Gulfport, was sentenced to seven months in federal prison and six months of home confinement with electronic monitoring for attempting to evade income taxes, announced U.S. Attorney Gregory K. Davis and Special Agent in Charge Gabriel Grchan with IRS - Criminal Investigation. Isabell was also ordered to pay $76,953.00 in restitution and a $3,000 fine. He will be placed on supervised release for two years after serving his sentence.
Isabell pled guilty on March 19, 2014 to attempting to evade taxes by preparing and filing a fraudulent tax return for the 2010 calendar year.
“Every citizen is responsible for filing correct and accurate tax returns," said Gabriel L. Grchan, Special Agent in Charge, IRS-Criminal Investigation. "As a paid return preparer, Jeffery Isabell certainly knew he was breaking the law. For his actions he was sentenced to seven months in prison and six months home confinement. IRS-CI will vigorously investigate those individuals who knowingly and willfully evade their tax obligation."
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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Fresno Woman Pleads Guilty to Stealing More Than $113,000 in Social Security BenefitsRead the Press Release
FRESNO, Calif. — Ernedina Madrigal, 78, of Fresno, aka Mary Louise Madrigal, pleaded guilty today to stealing social security benefits, United States Attorney Benjamin B. Wagner announced.
According to court documents, in September 1996, Madrigal applied for and began receiving social security benefits using a fraudulently-obtained social security number in her sister’s name. At that time, Madrigal already had applied for and was receiving social security benefits under her own name and legitimate social security number. For more than 16 years, Madrigal to unlawfully received social security benefits under the illicit social security number while also receiving benefits under her legitimate social security number. Madrigal also failed to report her receipt of earned income to the Social Security Administration. In all, Madrigal received approximately $113,000 in unlawful benefits.
This case was the product of an investigation by the U.S. Social Security Administration, Office of Inspector General. Assistant U.S. Attorneys Christopher Baker and Patrick Delahunty are prosecuting the case.
Madrigal is scheduled to be sentenced by Senior U.S. District Judge Anthony W. Ishii on August 25, 2014. Madrigal faces a maximum statutory penalty of ten years in prison, a $250,000 fine, or both. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Utah Certified Public Accountant Convicted of Filing False Claims for Tax Refunds <br /> Totaling More Than $8 Million and Presenting a $300 Million Fictitious Financial InstrumentRead the Press Release
Dick Reid Jenkins, of Heber City, Utah, was convicted today, in U.S. District Court for the District of Utah, of eighteen counts of filing false claims for income tax refunds and one count of presenting a fictitious financial instrument, the Justice Department and Internal Revenue Service (IRS) announced. Jenkins was charged by a superseding indictment on June 26, 2013. He is scheduled to be sentenced before U.S. District Judge Clark Waddoups on Sept. 9, 2014.According to court documents and evidence presented at trial, Jenkins filed a false 2007 individual income tax return for himself in September 2008 which claimed an income tax refund of $402,920. In October 2008, Jenkins filed a false amended 2004 individual income tax return which claimed an income tax refund of $434,261. Both false claims were based on the use of a false IRS Form 1099-OID, Original Issue Discount. The IRS listed this scheme as one of its “ Dirty Dozen ” worst tax scams each year from 2009 through 2014.
According to court documents and evidence presented at trial, in addition to his own false returns, Jenkins caused sixteen false federal individual income tax returns to be filed on behalf of other individuals from September 2008 through February 2009. These false tax returns also used false IRS Forms 1099-OID and claimed federal income tax refunds totaling $8,407,623. On June 30, 2008, Jenkins passed and presented a false and fictitious financial instrument to the U.S. Department of the Treasury in the amount of $300,000,000. Jenkins was licensed by the state of Utah as a Certified Public Accountant at the time his criminal conduct occurred.
Jenkins faces a statutory maximum penalty of 25 years in prison and a fine of up to $250,000 for passing and presenting a fictitious obligation to the United States. Jenkins also faces a maximum penalty of five years in prison and a fine of up to $250,000 or twice the gross gain or loss caused by the defendant for each count of presenting false, fictitious, and fraudulent claims to the United States.
Kathryn Keneally, Assistant Attorney General of the Department of Justice Tax Division, commended the special agents of IRS - Criminal Investigation who investigated the case, and Trial Attorneys Stuart Wexler and Michael Romano of the Tax Division, who prosecuted the case.
Former Riverside County Deputy Public Defender Gets Year in Prison for Collecting Her Dead Grandmother’s Social Security BenefitsRead the Press Release
RIVERSIDE, California – An Upland attorney was sentenced today to one year and one day in federal prison for stealing $129,795 from the Social Security Administration (SSA) after her grandmother died in 2000.
Audrey Owens, 61, who until she retired in September was a deputy public defender for Riverside County, was sentenced today by United States District Judge Virginia A. Phillips.
Owens pleaded guilty on March 3 to two counts of theft of government property, admitting that she bilked the government for 12 years.
According to court documents, from June 2000 through August 2012, Owens fraudulently obtained social security benefits intended for her grandmother, who died in May 2000. After her grandmother’s death, Owens changed the address of a joint account she shared with her grandmother and continued to receive the dead woman’s social security payments.
Owens “devised and executed a plan to illicitly obtain significant amounts of SSA benefits intended for her deceased grandmother,” prosecutors wrote in a sentencing memo filed with the court. “Indeed, within just one week of her grandmother’s death, [Owens] sprang her plan into action by immediately removing her father’s name off of the [grandmother’s] Kansas City account and changing the address of record to her own address in Upland. This allowed her to continue to receive SSA benefits, undetected, for over 12 years, totaling over $129,000. She was only stopped when SSA began to suspect fraud – otherwise, the theft would have likely continued indefinitely and resulted in even greater losses.”
The investigation in this case was conducted by the Social Security Administration, Office of the Inspector General, Office of Investigations.
Release No. 14-068
Former CEO and CFO of Arthrocare Corporation Convicted for Orchestrating $400 Million Securities Fraud SchemeRead the Press Release
A federal jury today convicted the former chief executive officer and the former chief financial officer of ArthroCare Corporation, a publicly traded medical device company based in Austin, Texas, for orchestrating a fraud scheme that resulted in shareholder losses of over $400 million.
Principal Deputy Assistant Attorney General Marshall L. Miller and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office made the announcement.
“These corporate executives cooked the books to prop up their stock, and when the truth came out investors lost more than $400 million,” said Principal Deputy Assistant Attorney General Miller. “Today’s convictions are the first step in holding them accountable for undermining our financial markets for their own personal gain.”
“This case demonstrates the FBI’s commitment to unraveling elaborate and complex fraud schemes leaving no financial stone unturned,” said FBI SAC Combs. “Those who abuse their position of trust to illegally enrich themselves, at the expense of shareholders and members of the investing public, will be held accountable for their actions.”
After a four-week trial, a jury in the Western District of Texas found the former CEO, Michael Baker, 55, guilty of conspiracy to commit wire and securities fraud, wire fraud, securities fraud and false statements. Michael Gluk, 56, the former CFO, was found guilty of conspiracy to commit wire and securities fraud, wire fraud and securities fraud. Baker and Gluk were charged in a superseding indictment returned on April 1, 2014.
Evidence at trial demonstrated that Baker and Gluk, along with their co-conspirators, masterminded and executed a scheme to artificially inflate sales and revenue through a series of end-of-quarter transactions involving several of ArthroCare’s distributors beginning in 2005 and continuing until 2009. Co-conspirators John Raffle and David Applegate, both former senior vice presidents of ArthroCare, pleaded guilty to multiple felonies in 2013 in connection with their participation in the scheme.
Baker, Gluk and other ArthroCare employees determined the type and amount of product to be shipped to distributors based on ArthroCare’s need to meet Wall Street analyst forecasts, rather than distributors’ actual orders. Baker, Gluk and others then caused ArthroCare to “park” millions of dollars’ worth of ArthroCare’s medical devices at its distributors at the end of each relevant quarter. ArthroCare then reported these shipments as sales in its quarterly and annual filings at the time of the shipment, enabling the company to meet or exceed internal and external earnings forecasts.
Evidence at trial further showed that ArthroCare’s distributors agreed to accept shipment of millions of dollars of products in exchange for special conditions, including substantial, upfront cash commissions, extended payment terms and the ability to return products, allowing ArthroCare to falsely inflate its revenue by tens of millions of dollars.
Baker, Gluk and others used DiscoCare, a privately owned Delaware corporation, as one of the distributors to cover shortfalls in ArthroCare’s revenue. Evidence at trial showed that, at Baker and Gluk’s direction, ArthroCare shipped product to DiscoCare that far exceeded DiscoCare’s needs.
Baker, Gluk and others lied to investors and analysts about ArthroCare's relationships with its distributors, including DiscoCare. Baker and Gluk caused ArthroCare to acquire DiscoCare specifically to conceal from the investing public the nature and financial significance of ArthroCare’s relationship with DiscoCare.
Evidence at trial also established that Baker lied when he was deposed by the U.S. Securities and Exchange Commission in November 2009 about the DiscoCare relationship.
Between December 2005 and February 2009, ArthroCare’s shareholders held more than 25 million shares of ArthroCare stock. On July 21, 2008, after ArthroCare announced publicly that it would be restating its previously reported financial results from the third quarter 2006 through the first quarter 2008 to reflect the results of an internal investigation, the price of ArthroCare shares dropped from $40.03 to $23.21 per share. The drop in ArthroCare’s share price caused an immediate loss in shareholder value of more than $400 million.
Following today’s verdict, U.S. District Judge Sam Sparks remanded Baker into custody. A sentencing date for Baker and Gluk has not yet been scheduled.
This case was investigated by the FBI’s San Antonio Field Office. The case is being prosecuted by Deputy Chief Benjamin D. Singer and Trial Attorneys Henry P. Van Dyck and William S.W. Chang of the Criminal Division’s Fraud Section. The Department appreciates the substantial assistance of the U.S. Securities and Exchange Commission.Final Defendant in Arizona-Florida Drug Conspiracy SentencedRead 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, and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, announce that Jerrick David Bartee, 31, of West Palm Beach, was sentenced by U.S. District Judge Kenneth A. Marra to 168 months in prison, followed by five years of supervised release, for his role in conspiring to distribute over five kilograms of cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 846. Jerrick David Bartee was the last defendant in this 30-defendant case to be sentenced.
In February 2013, following a two year investigation, agents arrested 30 defendants who were involved in this drug conspiracy. The evidence presented in court showed that this well organized conspiracy was responsible for transporting in excess of 12 kilograms of cocaine from Arizona to Florida via the U.S. Mail and other shipping companies. Once the cocaine arrived in South Florida, certain members of the organization converted the cocaine into crack cocaine and distributed the same in the streets of Lake Worth, Florida.
Twenty-nine of the 30 defendants entered pleas of guilty and were sentenced. One defendant, Frank Davis Moore, Jr., proceeded to trial and was convicted as charged. Jerrick David Bartee was sentenced as noted above. The remaining 29 defendants received the following sentences:
George Evans Bivins, Jr., 31, of West Palm Beach, was sentenced to 360 months in prison;
Antonio Markeith Beverly, 30, of West Palm Beach, was sentenced to 228 months in prison;
Daniel Emmanuel Torrez, 33, of Tucson, Arizona, was sentenced to 150 months in prison;
Lavaris Reshard Bivins, 23, of West Palm Beach, was sentenced to 188 months in prison;
William Alvarenga, 20, of Boynton Beach, was sentenced to 70 months in prison;
Jessica Marie Arvizu, 32, of Tucson, Arizona, was sentenced to 48 months in prison;
Michael Maxwell Barkley, 39, of Lake Worth, was sentenced to 240 months in prison;
Kirk Douglas Bivins, 39, of Riviera Beach, was sentenced to 120 months in prison;
Demetri Pernell Cobb, 25, of Lake Worth, was sentenced to 70 months in prison;
Darren Duane Donnally, 40, of Palm Springs, was sentenced to 262 months in prison;
Quatavious Carnell George, 27, of Riviera Beach, was sentenced to 120 months in prison;
Wellington Timothy Glinton, 21, of Lake Worth, was sentenced to 120 months in prison;
Javaris Reshad Bartelmy, 25, of Boynton Beach, was sentenced to 60 months in prison;
Ernest Andrew Holiday, 31, of Riviera Beach, was sentenced to 120 months in prison;
Jean Innocent, 22, of Lake Worth, was sentenced to 135 months in prison;
Demetrice Lemane Jones, 38, of Riviera Beach, was sentenced to 121 months in prison;
Dominic Perry Lamare, 36, of Port St. Lucie, was sentenced to 120 months in prison;
Patrick Jarrod Lowe, 26, of Lantana, was sentenced to 164 months in prison;
Richard John Mercy, 32, of North Palm Beach, was sentenced to 120 months in prison;
Frank Davis Moore, Jr., 34, of Royal Palm Beach, was sentenced to 180 months in prison;
Evens Pierre-Lewis, 28, of Palm Springs, was sentenced to 240 months in prison;
Theresa Lashai Razz, 29, of West Palm Beach, was sentenced to 48 months in prison;
Lori Beth Mae Saccoman, 51, of West Palm Beach, was sentenced to 37 months in prison;
Jeannot Saintelus, 24, of Lake Worth, was sentenced to 60 months in prison;
Calvin Leon Sirmans, 30, of Lake Worth, was sentenced to 120 months in prison;
Jamie Toby, 25, of Lake Worth, was sentenced to 200 months in prison;
Monica Deloris Toby, 48, of Lantana, was sentenced to 120 months in prison;
Eric Lanard Williams, 30, of Lantana, was sentenced to 120 months in prison; and
David Lendell White, 27, of Lake Worth, was sentenced to 120 months in prison.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Mr. Ferrer commended the investigative efforts of the FBI and the Palm Beach County Sheriff?s Office. This case was prosecuted by Assistant United States Attorneys Rinku Tribuiani and Robert Waters.
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.
Fayetteville Man Videotapes Sex with Step-daughterRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today IKE SIMMONS, 38, of Fayetteville, North Carolina, pled guilty before Senior United States District Judge W. Earl Britt to manufacturing child pornography, in violation of Title 18, United States Code, Sections 2252(a) and (d). A Federal Grand Jury returned a Criminal Indictment returned on January 21, 2014.
According to the investigation, in July, 2013, the mother of the victim contacted law enforcement reporting that her ex-husband had been molesting her 16-year-old daughter since 2009. SIMMONS was arrested and three computer hard drives, along with his Iphone was seized. Computer forensics later performed on the hard drive revealed that SIMMONS had videotaped the molestation using his cellphone and then transferred the videos to the hard drives.
SIMMONS is a previously convicted sex offender stemming from a 2003 conviction.
At sentencing, set for September 8, 2014, SIMMONS faces a minimum of 15 years imprisonment and up to a maximum of 30 years imprisonment. If it is determined that he has had prior convictions related to sexual abuse, abusive sexual conduct with a minor, or an offense related to child pornography or sex trafficking of children, he faces a minimum of 35 years and a maximum term of imprisonment up to life.
The criminal investigation of this case was conducted by the Cary Police Department, the Apex Police Department, and the Fayetteville Police Department. Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Fairfield Man Sentenced to 26 Years in Prison on Drug and Gun ChargesRead the Press Release
BIRMINGHAM -- U.S. District Judge L. Scott Coogler last week sentenced a Fairfield man to 26 years in prison on drug distribution and gun charges, announced U.S. Attorney Joyce White Vance and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Jeffrey L. Fulton.DAMIEN LARON McDANIEL, 33, pleaded guilty in February to one count of possession with intent to distribute cocaine, one count of using a firearm during a drug trafficking offense, two counts of being a convicted felon in possession of a firearm, and one count of possession with intent to distribute marijuana. Judge Coogler sentenced McDaniel to the 26 years in prison on those charges, and sentenced him to an additional 13 months in prison on a supervised release violation in a separate case.
The charges stemmed from a September 2012 controlled buy-bust operation in Fairfield conducted by the Alabama Alcoholic Beverage Control Board Drug Unit, according to court documents. McDaniel responded to a call from someone asking to buy heroin and showed up at the designated meeting place on Valley Road with packets of cocaine in his car and a Springfield 9mm pistol concealed in his waistband, according to his plea agreement.
At the time of that arrest, McDaniel already had been convicted of three felony offenses, according to the plea agreement.
In March 2013, a federal grand jury indicted McDaniel on charges arising from the September 2012 incident. When U.S. Marshals and other members of the Gulf Coast Regional Task Force arrested McDaniel in September 2013 on a warrant issued after the indictment, they observed numerous weapons and a large quantity of marijuana in plain view in the house where they found him, according to his plea agreement. Jefferson County Sheriff's Deputies followed up with a narcotics and weapons search warrant for the residence and recovered eight firearms and about a pound of marijuana.
The ATF, ABC, U.S. Marshals Service and Jefferson County Sheriff's Department investigated the case, which Special Assistant U.S. Attorneys E. Wilson Hunter and Daniel M. Murdock prosecuted.
Deputy Attorney General, Federal Law Enforcement Officials to Hold News Conference on Cyber Fraud AnnouncementRead the Press Release
Deputy Attorney General James M. Cole, Assistant Attorney General Leslie R. Caldwell of the Criminal Division, U.S. Attorney for Western District of Pennsylvania David Hickton, FBI Executive Associate Director Robert Anderson and Deputy Under Secretary Dr. Phyllis Schneck of the Department of Homeland Security will hold a news conference TODAY, MONDAY, JUNE 2, 2014, at 12:00 p.m. EDT, to announce criminal charges and two global cyber fraud disruptions.WHO: DeputyAttorney General James M. Cole
Assistant Attorney General Leslie R. Caldwell of the Criminal Division
U.S. Attorney for Western District of Pennsylvania David Hickton
FBI Executive Associate Director Robert Anderson
Deputy Under Secretary Dr. Phyllis Schneck
WHAT: Press conference to announce cyber fraud charges and disruptions.
WHEN: TODAY, 12:00 p.m. EDT, JUNE 2, 2014
WHERE: Department of Justice
7th Floor Conference Room
950 Pennsylvania Ave., N.W.
Washington, D.C.
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (such as driver’s license) as well as valid media credentials. Media must enter the department at the visitor’s entrance on Constitution Avenue between 9th and 10th Streets. Media may begin arriving at 11:00 a.m. EDT and cameras must be pre-set by 11:45 a.m. EDT. Press inquiries regarding logistics should be directed to the Office of Public Affairs at 202-514-2007 or email [email protected] .
Criminal Immigration Charges Brought Against Two Illegal AliensRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that charges in two unrelated cases were brought against the following persons in Harrisburg on May 30, 2014.
Marcos Guillen-Guillen, age 32, a native and citizen of Honduras, in the United States illegally was charged in a one-count information filed with the Court in Harrisburg today. The information alleges that Guillen-Guillen, an illegal alien, did enter the United States at any time or place other than as designated by immigration officers and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.
If convicted, Guillen-Guillen faces a maximum sentence of up to 6 months’ imprisonment and a $5,000 fine.
Johnny Martinez-Palacios, age 32, a native and citizen of Honduras, in the United States illegally was charged in a one-count information filed with the Court in Harrisburg today.
The information alleges that Martinez-Palacios, an illegal alien, did enter the United States at any time or place other than as designated by immigration officers and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.
If convicted, Martinez-Palacios faces a maximum sentence of up to 6 months’ imprisonment and a $5,000 fine.
The investigations were conducted by the U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) and is being prosecuted by Special Assistant United States Attorney Brian G. McDonnell.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Convicted Drug Trafficker Pleads Guilty to Federal Drug, Firearm ChargeRead the Press Release
PROVIDENCE, R.I. – A Providence resident previously convicted in state court on drug trafficking charges pleaded guilty in federal court today to federal drug trafficking and firearm charges and faces up to 70 years in federal prison, announced United States Attorney Peter F. Neronha and Daniel J. Kumor, Special Agent in Charge of the Boston Field Divisionof the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Jose A. Fuentes, 43, of Providence, pleaded guilty to three counts of distribution of heroin and one count of being a felon in possession of a firearm. He is scheduled to be sentenced on September 4, 2014.
Appearing before U.S. District Court Judge Mary M. Lisi, Fuentes admitted to the court that on March 5, 2012, and March 16, 2012, he sold a total of more than 14 grams of heroin to an undercover ATF agent. Additionally, Fuentes admitted to the court that on October 12, 2012, he traded with an undercover ATF agent .77 grams of heroin and $100 in cash for a semi-automatic handgun. Fuentes was arrested by ATF agents immediately after he took possession of the firearm.
According to information presented to the court, Fuentes was convicted in Rhode Island state court in August 2009 of delivery of heroin, and was on probation at the time of his arrest by ATF agents.
The case is being prosecuted by Assistant U.S. Paul F. Daly, Jr., with the assistance of Assistant U.S. Attorney William J. Ferland.
Distribution of heroin is punishable by a statutory penalty up to 20 years in federal prison and a fine of up to $1,000,000. Felon in possession of a firearm is punishable by a statutory penalty of 10 years imprisonment and a fine of $250,000.###
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]Chelsea Contractor Sentenced to 2¾ Years for Filing False Income Tax ReturnsRead the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that
Marshall Swan, 56, of Chelsea, Maine, was sentenced today in U.S. District Court in Bangor by
Chief Judge John A. Woodcock, Jr. to 2¾ years in prison and 1 year of supervised release for
federal tax fraud. He was also fined $40,000.According to the indictment and trial evidence, Marshall Swan and his wife, former
Chelsea selectman, Carole Swan, filed false federal income for tax years 2006 through 2010 in
which they under-reported about $650,000 in gross receipts and sales for their business, Marshall
Swan Construction, thereby evading about $145,000 in income and self-employment taxes.In imposing sentence, Chief Judge Woodcock found that shortly after the federal
indictment, the defendant paid two individuals $200 to slash truck tires and to shoot out the
windows of two excavators owned by Frank Monroe who had been a central witness in the
investigation. The defendant also told them to hit his brother for comments he made to a reporter
following the indictment. The two individuals stole a generator and two chainsaws from the
defendant’s brother. In imposing sentence, Chief Judge Woodcock noted that tax fraud crimes
are serious crimes and that these crimes were a way of life for the defendant. He also noted that
intimidating witnesses strikes at the heart of the judicial process and threatens the foundation of
our judicial system.The case was investigated by the Internal Revenue Service – Criminal Investigations
Division; the Federal Bureau of Investigation; the Department Homeland Security, Office of
Inspector General ("OIG"); the U.S. Department of Labor, OIG, Office of Labor Racketeering
and Fraud Investigations; the U.S. Postal Service, OIG; and the Kennebec County Sheriff's
Office.Carbon County Man Sentenced to Prison for Federal Cocaine Trafficking ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Carbon County man was sentenced today, in federal court in Scranton by Senior United States District Judge Edwin M. Kosik, to serve 30 months in prison on the charge of distributing cocaine.
According to United States Attorney Peter Smith, Joseph Revell, age 21, of Nesquehoning, Carbon County, previously pleaded guilty to distributing cocaine in the Carbon County area between January 2011 and December 2012.
In addition to the prison term, Senior Judge Kosik also ordered that Revell be supervised by a probation officer for three years following his release from prison.
Revell was indicted by a federal grand jury on October 30, 2012, after an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Nesquehoning and Lansford Police Departments in Carbon County.
Previously, Alexander “Butch” Sommers, age 48, of Summit Hill, Carbon County, was sentenced to 37 months in federal prison for participating in the same cocaine trafficking ring.
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
CFO Accused of Embezzling over $500,000 from Non-Profit EmployerRead the Press Release
SAN FRANCISCO – On May 29, 2014, a federal grand jury in San Francisco indicted Robert Bradley Strahan, a/k/a Robin Bradley, a/k/a Kaola Bradley for wire fraud and mail fraud, announced United States Attorney Melinda Haag, FBI Special Agent in Charge David J. Johnson, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
According to the Indictment, Strahan, 51, of San Francisco, allegedly embezzled in excess of $520,000 from the non-profit trade association he worked for in San Francisco. The Indictment also alleges that between December 2009 through April 2014, he carried out the scheme by, among other means, (1) writing, signing, endorsing, and cashing checks made payable to “Strahan” and “Cash” from the company’s bank accounts; and (b) using the company’s credit cards to make unauthorized purchases for his personal use. To perpetrate and to conceal his scheme to defraud, Strahan allegedly made false entries in the company’s accounting systems and sent falsified financial statements to the company’s board of directors.
Strahan was arrested in San Francisco on May 30, 2014, and made his initial appearance in federal court on the same day. Strahan is currently being held in custody pending a detention hearing scheduled for June 4, 2014, at 9:30 a.m. in a courtroom to be determined. Strahan will appear before the Honorable Thelton E. Henderson, United States District Court Judge, for arraignment on July 7, 2014, at 2:30 p.m.
The maximum statutory penalty for each count of wire fraud, in violation of 18 U.S.C § 1343, is 20 years imprisonment and a fine of $250,000. The maximum statutory penalty for each count of mail fraud, in violation of 18 U.S.C § 1341, is 20 years imprisonment and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Hallie Hoffman is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Bridget Kilkenny. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service.
Please note, an indictment contains only allegations against a person and, as with all defendants, Robert Bradley Strahan must be presumed innocent unless and until proven guilty.
(Strahan indictment )
Buffalo Woman Pleads Guilty to Bank FraudRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Nichole Dean, 27, of Buffalo, N.Y., pleaded guilty to bank fraud before U.S. Magistrate Judge Leslie G. Foschio. The charge carries a maximum penalty 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 case, stated that the defendant was part of a conspiracy to defraud local area banks by participating in a scheme sometimes referred to as “Check Kiting.” Dean would open bank accounts and deposit 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 could determine that the checks were not supported by any funds, the defendant withdrew smaller amounts from the accounts. Although Dean made away with $7,612.73, the amount of the intended loss was more than $36,000.
Co-conspirators Carlique Deberry, Sade Heath and Sayonara Heath have all been convicted of similar charges.
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 take place at a later date before Chief U.S. District Judge William M. Skretny.Broward Resident Sentenced to 94 Months in Prison in Treasury Check Cashing and Stolen Identity SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula Reid, Special Agent in Charge, U.S. Secret Service, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Ronald Walker, 36, of Fort Lauderdale, was sentenced before U.S. District Judge James I. Cohn for his participation in a check cashing and stolen identity scheme. Walker was sentenced to 94 months in prison, to be followed by three years of supervised release. Ronald Walker was also ordered to pay restitution of $1,094,185.20 to the IRS.
Ronald Walker previously pled guilty in two cases. In one case, he pled guilty to one count of theft of public money, a United States income tax refund check, in violation of Title 18, United States Code, Section 641, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). In the second case, he pled guilty to conspiracy to steal, receive, and retain money and things of value of the United States and to forge endorsements on and cash treasury checks, receipt and retention of things of value of the United States, and aggravated identity theft.
According to court documents, a confidential informant (CI) told federal agents that Walker routinely received stolen or fraudulently obtained U.S. Treasury checks and negotiated them at a check cashing store called American Quick Cash (AQC) located in Broward County, which was owned by Wilson and Kate Lau. The CI also stated that Walker forged the payees’ endorsements on the back of the checks and provided Wilson Lau with the payees’ social security numbers and copies of altered Florida driver’s licenses.
During an undercover operation, Walker was given three treasury tax refund checks that resulted from fraudulent tax returns being filed in the names and social security numbers of real people. Ronald Walker was also provided with driver’s license numbers, social security numbers, and dates of birth for all of the payees on the checks. Ronald Walker went to AQC, and then gave the CI and/or undercover agent their portion of the cashed checks. After clearing the banking system, the checks that were created for this investigation included endorsements on the back, but the payees were fictitious and could not have endorsed the checks.
From February 2010 through May 2011, the total amount of U.S. Treasury checks cashed by Walker at AQC is approximately $1,234,114. The number of victims involved is greater than 50, but fewer than 250.
In a separate investigation, Walker and co-defendants, Aaron Taylor, 30, Lauderhill, James Burch, 36, Coral Springs, and Regina James, 39, Ft. Lauderdale, sold $75,108.79 in fraudulently obtained tax refund checks and 609 people’s identifying information.
On July 20, 2012, Wilson Lau, 75, and his wife, Kate Yuee Lau, 54, formerly of Coral Springs, were sentenced before U.S. District Judge Robert Scola. Wilson Lau was sentenced to 84 months in prison, to be followed by three years of supervised release. Kate Yuee Lau was sentenced to 24 months in prison, to be followed by three years of supervised release.
On May 16, 2014, Taylor was sentenced to 54 months in prison and Burch was sentenced to 36 months in prison. Aaron Taylor and Burch assisted Walker to sell the fraudulent tax refund checks and identifying information. Sentencing for James is scheduled for June 6, 2014 at 4:00 p.m. before U.S. District Judge Kenneth A. Marra.
Mr. Ferrer commended the investigative efforts of IRS-CI, the Secret Service, and the FBI. The case is being prosecuted by Assistant U.S. Attorneys Alicia E. Shick and Marc Osborne.
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.
Antioch Resident Pleads Guilty to Conspiring to File False ClaimsRead the Press Release
OAKLAND – Jessika Green pleaded guilty on May 30, 2014, to conspiring to file false claims, announced U.S. Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
According to the plea agreement, beginning in January 2011, Green assisted in filing several tax returns with the IRS that were false and fraudulent. Green admitted that the tax returns were false because the filings included fictitious Forms W-2 that inflated the purported filers’ wages. The filings included a tax return filed in Green’s name which falsely reported her earnings from a staffing agency. In other instances, Green admitted to filing the false tax returns without ever showing the fraudulent tax return to the purported filer. As part of her plea, Green admitted that she filed false tax returns asking for at least $154,823, all of which she was not entitled to receive, and agreed to pay restitution in the amount of $92,191, equaling the amount of returns sent to her.
Green was charged with Khyber Law who pleaded guilty to conspiring to file false claims on April 4, 2014.
Green, 33, of Antioch, was charged in a superseding indictment on Dec. 17, 2013, with conspiracy to file false claims, wire fraud, filing false claims and aggravated identity theft. Green, is scheduled to be sentenced before the Honorable Jon S. Tigar United States District Court Judge on October 10, 2014, in Oakland.
Law pleaded guilty to conspiracy to file false claims and agreed to pay restitution related to this offense. Law is scheduled to be sentenced for his role in this offense on Aug. 22, 2014, before Judge Tigar as well.
The maximum statutory penalty for each count of conspiracy to file false claim, in violation of 18 U.S.C § 286, is ten years in prison, and a fine of $250,000.
Assistant U.S. Attorney Thomas Newman is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
(Law indictment )
Anchorage Man Faces Federal Drug Trafficking ChargesRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Kevin R. Feldis announced today that a local man was arraigned in federal court in Anchorage on two counts of possession of controlled substances with intent to distribute.
Amos Lee Blakeney, 47, was charged in a two-count indictment.
According to the information presented to the court, Blakeney possessed both heroin and cocaine with the intent to distribute the substances to other individuals. The indictment also seeks forfeiture of over six thousand nine hundred dollars seized during the course of this investigation.
Special Assistant U. S. Attorney Erin W. Bradley, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation Safe Streets Task Force and the Anchorage Police Department conducted the investigation leading to the indictment in this case. SAUSA Bradley is a prosecutor in the U.S. Attorney’s Office funded by the Municipality of Anchorage for the purpose of prosecuting gang-related and violent crime cases.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Accountant Sentenced to ImprisonmentRead the Press Release
HONOLULU – U.S. District Court Judge Leslie E. Kobayashi today sentenced Dennis Duban, a Los Angeles-based accountant and tax return preparer, to 24 months imprisonment for conspiracy to defraud the Internal Revenue Service (IRS) and assisting in the filing of a false federal income tax return before in Honolulu, Hawaii. She also ordered Duban to pay a fine of $30,000 and perform 600 hours of community service. Duban pled guilty to those offenses in October 2012.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, and Kathryn Keneally, Assistant Attorney Genral for the Tax Division of the Department of Justice, said that according to information produced in court:
- Duban was a Certified Public Accountant who ran an accounting firm called Duban Sattler and Associates, LLP (formerly Duban Accountancy, LLP), in Los Angeles, California. Duban provided accounting and tax planning services to Hawaii residents Charles Alan Pflueger, James Pflueger, and some of the Hawaii-based entities they controlled, including Pflueger, Inc. and Pflueger Properties.
- Beginning as early as 2003, Duban knew that personal expenses of Pflueger, Inc. owner Charles Alan Pflueger were being paid for by Pflueger, Inc. and illegally deducted on corporate income tax returns as business expenses. Duban also knew that some personal expenses of another co-defendant were being paid for and illegally deducted by Pflueger, Inc.
- In preparing tax returns for Charles Alan Pflueger and another co-defendant from at least 2003 to 2006, Duban did not include as additional items of income all personal expenses of which he was aware were paid for by Pflueger, Inc. and constituted income to the taxpayers.
- In connection with the 2007 sale of Hacienda, a San Diego, California investment property owned by Pflueger Properties, Duban agreed with another co-defendant to file a false Pflueger Properties 2007 partnership income tax return and false individual income tax return which falsely reported the gain on the sale of the property, which sold for $27,500,000. In particular, Duban reported the basis of Hacienda as approximately $7 million higher than its actual basis.
- Prior to the sale of the Hacienda property, Duban and others assisted the same co-defendant in creating a nominee Cook Islands trust and opening a bank account at Wegelin Bank in Switzerland in the name “Southpac Trustee International, Inc., as Trustee of the Vista Pacifica Trust.” Proceeds of the Hacienda sale, over $14 million, were sent to the Wegelin account. Duban and a New York-based firm served as investment managers for the account. Duban and the co-defendant did not timely report the co-defendant’s beneficial interest in the Swiss account on Schedule B of a Form 1040 individual income tax return or by filing a Report of Foreign Bank Account (“FBAR”).
- Duban had an interest in other foreign bank accounts that he failed to properly report to the government. For at least 2006 and 2007, Duban failed to report his interest in at least one New Zealand account, held in the name of Lookout Point Limited, on Schedule B of his individual income tax returns or by filing an FBAR.
Three of Duban’s codefendants, Alan Pflueger, Randall Kurata, and Julie Kam previously pleaded guilty. Alan Pflueger pleaded guilty to willfully filing his own false 2005 Form 1040. In his plea agreement he admitted that from 2003 through 2005, personal expenses were paid for on his behalf by Pflueger, Inc., and Pacific Auto Distributors, LLC, another entity he owned, and his personal tax returns did not report these personal expenses as income. Randall Kurata, CFO of Pflueger, Inc., pleaded guilty to willfully filing a false 2003 Form 1120, U.S. Corporation Income Tax Return, for Pflueger, Inc., which improperly deducted as business expenses significant personal expenses of Alan Pflueger. Julie Kam, Alan Pflueger’s executive assistant, pleaded guilty to willfully filing her own 2004 Form 1040, which did not report personal expenses paid to her through Pacific Auto Distributors. Judge Kobayashi sentenced Alan Pflueger to 15 months’ imprisonment, while Randall Kurata and Julie Kam were both sentenced to terms of probation.
The indictment resulted from an investigation conducted by IRS - Criminal Investigation. Assistant United States Attorney Leslie E. Osborne, Jr. and Tax Division Trial Attorneys Timothy J. Stockwell and Dennis R. Kihm, handled the prosecution.
Friday 30 May 2014
Week in Review - South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Erskine Jones, 22, of South Bend, Indiana pled guilty to the felony offense of being a felon in possession of a firearm. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. Sentencing has been set for 8/27/2014. This case is being prosecuted by Assistant United States Attorney Donald Schmid.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITION
- Lorenzo Coben, 25, of South Bend, Indiana was sentenced to 264 months imprisonment to run consecutively to an undischarged prison term imposed on 6/10/2013, and concurrently with the another undischarged prison term imposed on 6/10/2013, 3 years supervised release and to pay $13,131.00 in restitution after pleading guilty to the felony offense of using a firearm during and relation to a crime of violence. According to documents filed in this case, on or about April 11, 2013, Coben did knowingly use and carry a firearm during and in relation to a crime of violence, specifically, an armed bank robbery. During the bank robbery, Coben brandished the firearm. This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Jesse Barrett.
- Gigi Riley, 33, of South Bend, Indiana was sentenced to 51 months imprisonment, 3 years supervised release and to pay $2,572,350.52 in restitution after pleading guilty to the felony offense of conspiracy to defraud the government with respect to filing of false, fictitious, and fraudulent claims. According to documents filed in this case, Riley led and participated with others in a false tax return preparation and filing scheme in South Bend, Indiana. She prepared and submitted Forms 1040, U.S. Individual Income Tax Returns, with false or inflated Forms W-2 to obtain false tax refunds. Within the scheme approximately 1,189 tax returns were submitted for tax years 2008, 2009, and 2010 requesting a total of approximately $3,543,794.00 in tax refunds. Riley owned and maintained a bank account that received approximately $518,343.50 in tax refunds and she owned and maintained another account that received approximately $30,035.00 in tax refunds. She also oversaw and controlled bank accounts opened by others that received tax refunds from the false tax returns. This case was the result of an investigation by the Internal Revenue Service – Criminal Investigation Division. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
- William Cooper, 52, of Mishawaka, Indiana was sentenced to 46 months imprisonment and 2 years supervised release after pleading guilty to the felony offense of possessing a firearm as an unlawful drug user. According to documents filed in this case, on April 22, 2013, Mishawaka police conducted a traffic stop on a vehicle pulled into a residence. Cooper was the driver and police found two loaded guns in the console of the car. Indications of a methamphetamine lab were discovered in the basement of the house. Police officers entered the house initially for safety reasons and then proceeded to search on the basis of consent from Cooper. Police found three persons inside the residence who had outstanding warrants for arrest. Cooper admitted that he had approximately 15-16 long guns in the house in addition to the two handguns in the vehicle. He also admitted to being a regular methamphetamine user. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review - HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Theodis Lanfair, 42, of Calumet City, Illinois pled guilty to the felony offense of conspiracy to commit mail fraud. This charge was filed as a result of an investigation by the United States Postal Service and the Federal Bureau of Investigation. Sentencing has been set for 8/12/2014. This case is being prosecuted by Assistant United States Attorney Toi Houston.
- Dwayne Ashford, 52, of Michigan City, Indiana pled guilty to the felony offense of conspiracy to commit mail fraud and mail fraud. This charge was filed as a result of an investigation by the United States Postal Service and the Federal Bureau of Investigation. Sentencing has been set for 8/26/2014. This case is being prosecuted by Assistant United States Attorney Toi Houston.
- Nathan Huey-Dingle, 32, of South Bend, Indiana pled guilty to the felony offense of traveling in interstate commerce, transporting an individual across state lines, and trafficking an individual by force, fraud or coercion, with intent to engage in, promote, and facilitate the promotion, management, establishment and carrying on of a prostitution enterprise, and thereafter committing a crime of violence that resulted in the death of an individual. This charge was filed as a result of an investigation by the Federal Bureau of Investigation. Sentencing has been set for 10/17/2014. This case is being prosecuted by Assistant United States Attorney Jill Koster.
- John Dates of Gary, Indiana pled guilty to the felony offense of knowingly and intentionally possessing with the intent to distribute a mixture and substance containing a detectable amount of cocaine. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation and the Gang Response Task Force. Sentencing has been set for 10/7/2014. This case is being prosecuted by Assistant United States Attorney Josh Kolar.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Cahleb Smith-Conrad, 22, of Delphi, Indiana was sentenced to probation for a term of one year after pleading guilty to the felony offense of possessing a firearm as a felon. According to documents filed in this case, on March 16, 2013, the Tippecanoe County Sheriff’s Department conducted a traffic stop on a vehicle after a 911 caller observed an intoxicated person drive his vehicle into the ditch and the intoxicated person was picked up by a vehicle driven by Smith-Conrad. The deputy sheriff conducted a traffic stop on the vehicle. The deputy sheriff observed a 12 gauge shotgun in the back seat of the vehicle. This case was the result of an investigation by Tippecanoe County Sheriff’s Department and the Carroll County Sheriff’s Department. This case was prosecuted by Assistant United States Attorney Dean Lanter.
- Tiana Williams, 30, of Gary, Indiana was sentenced to probation for a term of one year after pleading guilty to the felony offense of making a false statement in connection with the acquisition of a firearm. According to documents filed in this case, Williams admitted to agents that she purchased a Ruger 9mm pistol for a convicted felon. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Nick Padilla.
- Azzam Al-Hindi, 68, of Whiting, Indiana was sentenced to 7 months of home detention, payment of $2,000 in fines and payment of $32,667.64 in restitution after pleading guilty to the felony offense of mail fraud. According to documents filed in this case, between 2006 and 2010, Al-Hindi and others conspired to use false purchasers and often stole luxury vehicles to fraudulently obtain auto loans from different financial institutions. Those false purchasers intentionally submitted fraudulent consumer credit applications with no ability or intention to repay the loans. This case was the result of an investigation by the Department of Treasury - Secret Service. This case was prosecuted by Assistant United States Attorney Randy Stewart.
- Eloise Blackmon, 55, of Gary, Indiana was sentenced to 21 months, 1 year supervised release and to pay $200,000 in fines after pleading guilty to the felony offense of conspiracy to commit wire fraud and wire fraud. According to documents filed in this case, on May 9, 2006, Ms. Blackmon purchased a home in Gary, Indiana. The home was sold for significantly more than its actual value and the Department of Housing and Urban Development statement for the sale included a payment to Horizon Development for $37,750.46 for repairs to the property. The evidence collected in the investigation has revealed that no such repairs were ever actually done by Horizon - either before or after the sale. This home was one of ten involved. This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Nick Padilla.
Week in Review - Fort WayneRead the Press Release
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Deandre Banks, 24, of Fort Wayne, Indiana pled guilty to the felony offense of bank fraud. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Internal Revenue Service. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Lovita Morris-King.
U.S. Attorney Files Charges in Multi-million Dollar Kickback Scheme Orchestrated at Logan County MineRead the Press Release
Charges Cover Widespread Multi-Million Dollar Fraud Uncovered In “Pay-to-Play” Kickback Scheme At Arch Coal’s Mountain Laurel Mining Complex In Logan County
CHARLESTON, W.Va. – United States Attorney Booth Goodwin today filed a variety of charges in United States District Court in Charleston arising out of a joint federal and state criminal investigation into cash kickbacks paid to Arch Coal, Inc. (“Arch”) employees working at the Mountain Laurel Mining Complex (“Mountain Laurel”) near Sharples, Logan County, West Virginia. The charges lay out a far reaching scheme orchestrated by Arch employees, including the former Mountain Laurel General Manager David E. Runyon, 45, of Delbarton, Mingo County, to receive cash kickbacks from certain vendors in exchange for receiving work. According to the charges, vendors were required to pay hundreds of thousands of dollars over several years to ensure that vendors received and continued to receive work at Mountain Laurel.
“This kind of pay-to-play scheme hurts honest coal-industry vendors who refuse to pay bribes as a way to get customers,” commented U.S. Attorney Booth Goodwin. “The corrupt way that these defendants did business should be a thing of the past. It’s bad for the economy and, ultimately, bad for consumers.”
According to the charges:
David E. Runyon, 45, of Delbarton, Mingo County, is charged with extorting certain vendors for cash kickbacks in exchange for ensuring that those complicit vendors continued to receive work from Mountain Laurel. As outlined below, Runyon and other Arch employees are charged with receiving kickbacks approaching $2 million over a five-year span from sometime in 2007 through sometime in 2012. Runyon faces up to 25 years’ imprisonment and a fine of up to $500,000 if convicted.
Gary K. Griffith, 62, of Oceana, Wyoming County, was charged with making a materially false statement to federal and state law enforcement when interviewed in the Mountain Laurel kickback scheme investigation. According to the charge, he was the maintenance manager at Mountain Laurel, and received cash kickbacks in the amount of at least $250,000 on behalf of him and mine general manager David E. Runyon from a vendor who refurbished shuttle cars. When he was asked by federal agents about receiving kickbacks either personally or on behalf of Runyon, he denied it. Griffith faces up to 5 years’ imprisonment and a fine of up to $250,000 if convicted.
Stephen B. Herndon, 37, of Holden, Logan County, the former Mountain Laurel warehouse manager and now owner of Tri-State Mine Service, Inc., is charged with “structuring” a cash withdrawal from a local bank. The term “structuring” is used to describe criminal conduct when an individual engages in cash transactions with a financial institution in increments of $10,000 or less for the purpose of avoiding the financial institution’s currency transaction report (“CTR”) filing requirement with the Department of Treasury. Herndon faces up to 5 years’ imprisonment and a fine of up to $250,000 if convicted.
Scott E. Ellis, 44, of Holden, Logan County, Stephen B. Herndon’s business partner in Tri-State, is also charged with structuring a cash withdrawal from a local bank account. According to the Information filed in Runyon’s case, Tri-State, through Ellis and Herndon, paid nearly $425,000 over a five-year period to receive rebuild work from Mountain Laurel. Ellis faces up to 5 years’ imprisonment and a fine of up to $250,000 if convicted.
Alvis R. Porter, 61, of Holden, Logan County, owner and operator of Quality Oil, Inc., which was doing business as Southern Construction of Logan, provided construction services at the Mountain Laurel Mining Complex. Porter was charged with failing to collect, account for, and pay over trust fund taxes of an employee. As part of Runyon’s charge, Porter paid approximately $400,000 in kickbacks directly to Runyon. Porter faces up to 5 years’ imprisonment and a fine of up to $250,000 if convicted.
David N. Herndon, 63, of Chauncey, Logan County, was charged with engaging in an unlawful monetary transaction of criminally derived property of a value greater than $10,000. According to the charge, David Herndon owned MAC Mine Service, Inc., which provided contract labor to the Mountain Laurel Mining Complex. D. Herndon participated in a contract labor kickback scheme where in exchange for Runyon not seeking to terminate the contract, and instead extending the contract each year, David Herndon paid illegal cash kickbacks of approximately $340,000 for more than three years. D. Herndon faces up to 10 years’ imprisonment and a fine of up to $250,000 if convicted.
Ronald Barnette, 53, of Holden, Logan County, was charged with making a materially false statement to federal and state law enforcement investigating the Mountain Laurel kickback scheme. According to the charge, Barnette’s false statement pertained to paying kickbacks at Mountain Laurel for work that Barnette’s company received in rebuild miners and bolters at Mountain Laurel. Barnette ultimately admitted to making approximately $300,000 in cash kickbacks to Runyon over the course of the scheme. Barnette faces up to 5 years’ imprisonment and a fine of up to $250,000 if convicted.
Gary L. Roeher, 52, of Holden, Logan County, was charged with filing a false tax return. According to the charge, Roeher deducted approximately $43,000 as a business expense for his company, CM Supply, when Roeher actually used the funds to install an in-ground swimming pool at his residence. Roeher faces up to 5 years’ imprisonment and a fine of up to $250,000 if convicted.
Chadwick J. Lusk, 32, of Davin, Logan County, was charged with honest services mail fraud. According to the charge, Lusk, while the purchasing agent at Mountain Laurel, defrauded Arch Coal of its right to honest services by receiving illegal cash kickbacks in a crib block kickback scheme. Gary L. Roeher, who owned CM Supply, Co., paid Lusk a portion of the profits for the crib blocks that Arch Coal purchased from CM Supply, Co. to use at Mountain Laurel to provide roof support in the underground mine portion of Mountain Laurel. Lusk faces up to 20 years’ imprisonment and a fine of up to $250,000 if convicted.
James H. Evans II, 39, of Verdunville, Logan County, owned and operated Baisden Recyling, which had a contract with Arch Coal to recycle scrap metal at the Mountain Laurel Complex. Evans was charged with conspiracy to commit honest services fraud, as he recycled scrap cable at Mountain Laurel. Evans paid Arch’s $30,000 commission on the scrap cable to Runyon through another Arch employee, Stephen B. Herndon, rather than to Arch. Evans faces up to 5 years’ imprisonment and a fine of up to $250,000 if convicted.
The charging documents, referred to as “informations,” are attached.
Today’s charge stems from an investigation being conducted by the FBI, IRS Criminal Investigation, United States Postal Inspection Service, and the West Virginia State Police. Assistant United States Attorneys Thomas C. Ryan and Meredith George Thomas are handling the prosecution.
NOTE: An information is merely an accusation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Click here to see a copy of the information documents.
Timonium Man Pleads Guilty to Stealing over $570,000 from an NIH Research GrantRead the Press Release
Stole Money Intended for Research Conducted at the
National Institute for Drug Abuse Facilities in BaltimoreBaltimore, Maryland - Baltimore, Maryland – Jason Dietz, age 34, of Timonium, Maryland, pleaded guilty today to theft of funds from a federal program, in connection with the theft of at least $571,205 in grant money from the National Institute for Drug Abuse for research conducted at its facilities in Baltimore.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Elton Malone, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Special Investigations Branch.
The National Institute for Drug Abuse (“NIDA”) is part of the National Institutes of Health and is located at Johns Hopkins Bayview Center in Baltimore. NIDA also operates the Archway Treatment Clinic, also in Baltimore. NIDA and its grantees conduct research on the science of addiction and treatment and publish that research in scientific and medical peer-reviewed journals. For each of the years 2006-2013, NIDA conducted from 26 – 31 studies at Bayview and the Archway Clinic.
According to Dietz’s plea agreement, from 2006 until June 2013, Dietz worked for Matthews Media Group (MMG), which was contracted by NIDA to recruit, screen, and compensate participants in NIDA’s clinical research studies conducted at Bayview and Archway. Dietz’ job was to compensate study participants, typically with cash or gift cards, obtain receipts from study participants, and keep a spreadsheet of participants’ compensation with supporting documentation—chiefly signed receipts from the study participants. Dietz was a signatory on an MMG bank account from which he withdrew cash to pay study participants; in addition, he provided cash to Archway Clinic for the clinic employees to pay study participants. MMG invoiced NIDA each month and included in its invoice amounts taken directly from the spreadsheet prepared by Dietz.
Dietz admitted that, beginning in 2007, he embezzled funds from MMG in several ways. For example, Dietz paid study participants and obtained a signed receipt from them, then logged a higher amount on the spreadsheet and pocketed the difference between the two amounts. In addition, Dietz created fictitious receipt numbers and amounts which he placed on his spreadsheet, then pocketed all the cash from these fictitious payments. Finally, Dietz listed on his spreadsheet higher amounts than were actually paid to Archway Clinic employees for them to pay Archway participants and pocketed the difference.
In 2013, MMG was responding to questions from NIDA employees when discrepancies were discovered between the signed receipts and Dietz’ spreadsheet. MMG then conducted an audit that looked at every entry on every spreadsheet which was used to bill NIDA and the back-up documentation. For the time period October 2006 through May 2013, the MMG auditor found that Dietz overstated the expenses on the spreadsheet compared to the actual receipts by $571,205, and that he deposited $586,083 into his personal bank account during that same time period. In addition, the MMG auditors discovered that $112,500 was missing from the MMG bank account on which Dietz was a signatory. Dietz admitted that in addition to depositing embezzled funds into his personal bank account, he also embezzled cash that he spent.
As part of his plea agreement, Dietz is required to pay restitution in the full amount of the loss. While the exact amount of the loss will be determined at sentencing, it is at least $571,205.
Dietz faces a maximum sentence of 10 years in prison. U.S. District Judge J. Frederick Motz has scheduled sentencing for September 8, 2014 at 9:00 a.m.
United States Attorney Rod J. Rosenstein praised the HHS-OIG for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Joyce K. McDonald, who is prosecuting the case.Three More Defendants Sentenced in Logan Arson RingRead the Press Release
Joint Federal and State Investigation Results in 25 Years Of Prison Time For Million-Dollar Insurance Scam
CHARLESTON, W.Va. – Three more participants in a Logan County arson scheme were sentenced to prison, United States Attorney Booth Goodwin announced today. On Wednesday, Guy R. Miller, Jr., 40, of Logan, was sentenced to six years and three months in prison for his role in facilitating the February 1, 2012 burning of a former law office building located at 111 Stratton Street in downtown Logan. Miller recruited Michael D. Williams, 44, of Logan to spread approximately fifteen gallons of gasoline throughout the first floor of the building and ignite the fire. Williams spread so much gasoline that the fumes accumulated in the ceiling causing a dangerous explosion. The explosion was caught on the Logan County Courthouse video security system. Williams received a reduced sentence of 32 months in prison on Thursday as a result of his cooperation. Shawn C. Simon, 41, of Charleston, drove the getaway car for Miller and Williams and was sentenced Thursday to a term of 22 months in prison for destroying the digital video recorder from the neighboring restaurant, the 317 Steakhouse, operated by co-conspirator James Gregory Glick, 44, of Logan. The Main Street side security cameras for the restaurant captured Miller, Simon and Williams fleeing the scene after passing through a law office with doors that opened onto Main Street and Stratton Street. Simon admitted that he destroyed the video recorder shortly after the fire and threw it into the Kanawha River to conceal the evidence.
The scheme was initially hatched by Glick and another co-conspirator to collect insurance proceeds. In January of 2012, Glick bought the commercial building for $50,000. He then worked with an insurance agent and co-conspirator, William Jamey Thompson, 45, of Chapmanville, to obtain an inflated insurance policy from General Star Indemnity Company (“General Star”) providing $1 million in coverage. Thompson received $50,000 for his part in fraudulently obtaining insurance coverage.
While Glick was out of town during the early morning hours of February 1, 2012, Miller orchestrated the burning of the structure with Williams and Simon.
Without sufficient evidence of the arson, General Star paid Glick the $1,010,000 insurance policy proceeds in May of 2012, and Glick began sharing the money with his co-conspirators. In June of 2013, criminal investigators from the Internal Revenue Service, working with the West Virginia State Police, seized the remaining $450,000 in fraud proceeds from accounts controlled by Glick. Over the course of the next six weeks, the agents developed cooperating witnesses, who obtained audio and video recordings of efforts by Glick to obstruct the federal grand jury investigation by paying Miller $8,000 to provide false testimony if he was called as a witness.
Last week Glick received a sentence of more than 7 years for his role in the conspiracy and Thompson received a term of imprisonment of five years.
In addition to the $1,010,000 restitution order to repay General Star, the Court also ordered all defendants to reimburse the City of Logan $3,900 for emergency personnel response costs.
In March, Philip Wayne Workman, 36, of Logan was sentenced to prison for 27 months for his efforts to obstruct the arson investigation by conducting staged consensual recordings in an effort to frame innocent individuals.
The West Virginia State Police, West Virginia State Fire Marshal’s Office and the IRS Criminal Investigation Division conducted the investigation. Assistant United States Attorney Thomas Ryan is in charge of the prosecutionThirteen South Florida Men Are Sentenced in A Cocaine Trafficking ConspiracyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, Amos Rojas, Jr., United States Marshal, U.S. Marshals Service (USMS), Noel Manheimer, Director of Marine Operations, U.S. Customs and Border Protection (CBP), Dan Alexander, Chief, Boca Raton Police Department, Bryan Kummerlen, Chief, West Palm Beach Police Department, Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), and Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, announce today that Osvaldo Domingo Ceballo, 44, of Hialeah, and Yumar Oliva, 43, of Miami, were sentenced by U.S. District Judge Daniel T.K. Hurley for conspiracy to possess with intent to distribute more than five kilograms of cocaine hydrochloride, in violation of Title 21, United States Code, Section 846, and possession with intent to distribute more than five kilograms of cocaine hydrochloride, in violation of Title 21, United States Code, Section 841. Ceballo was sentenced to 216 months in prison, followed by five years of supervised release. Oliva was sentenced to 151 months in prison, followed by five years of supervised release. Both defendants were convicted by a jury on March 13, 2014, following a two week trial in West Palm Beach.
In October of 2010, DEA, the Boca Raton Police Department, and the Palm Beach County State Attorney’s Office began an investigation of co-defendant Taverne Pierre Louis’ drug distribution network operating in Haiti, the Bahamas, and in Miami-Dade, Broward, and Palm Beach Counties. During the course of this two year investigation, law enforcement conducted 14 wiretap investigations during which over 33,000 telephone calls and text messages were intercepted. In addition, law enforcement conducted surveillance operations, executed a number of search warrants, and seized 27 kilograms of cocaine hydrochloride and over 100 grams of cocaine base, commonly referred to as “crack” cocaine. Based upon the totality of the investigation, law enforcement learned that this large scale drug trafficking organization was responsible for the importation of hundreds of kilograms of cocaine hydrochloride from Haiti and the Bahamas for distribution in Miami-Dade and Broward Counties.
A total of fifteen defendants were charged in this indictment, two of which remain fugitives. Taverne Pierre Louis was sentenced to 188 months in prison, followed by five years of supervised release; Frantz Bernard was sentenced to 188 months in prison, followed by five years of supervised release; Joachim Pierre Louis was sentenced to 84 months in prison, followed by three years of supervised release; James Francois was sentenced to 84 months in prison, followed by five years of supervised release; Jose Ignacio Sigler was sentenced to 72 months in prison, followed by three years of supervised release; Beverly Sharon Miller was sentenced to 60 months in prison, followed by four years of supervised release; Tyrell Patrick Josey was sentenced to 30 months in prison, followed by five years of supervised release; Tremaine Shenard Jackson was sentenced to 120 months in prison, followed by five years of supervised release; Terrence Demetrius Nesbitt was sentenced to 188 months in prison, followed by five years of supervised release; Ronel M. Theodore was sentenced to 121 months in prison, followed by five years of supervised release; and Kirk Irwin Pierce was sentenced to 84 months in prison, followed by three years of supervised release.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Mr. Ferrer commended the investigative efforts of the DEA, CBP, Boca Raton Police Department, and Palm Beach County State Attorney’s Office. Mr. Ferrer also thanked the USMS, BSO, and the West Palm Beach Police Department for their assistance in this matter. This case is being prosecuted by Assistant U.S. Attorney Jennifer C. Nucci.
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.
Texas Resident Charged with Illegally Selling Controlled Substances on Silk Road, BitmessageRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces the arrest and unsealing of a criminal complaint charging Matthew Jones, a/k/a “Caligirl,” “Dynamite2k,” “Dynamite`,” “Tyler Zeddai,” “Mateo Jones” (44, Dallas, Texas) with the illegal distribution of controlled substances. If convicted, he faces a maximum penalty of 20 years in federal prison. Jones was arrested last night in Fort Lauderdale. He made an initial appearance this morning in the Southern District of Florida.
According to the criminal complaint, Jones operated as the vendor “Caligirl” on the Silk Road drug marketplace and was among the top 5% of all Silk Road vendors. Between April 10, 2013, and September 9, 2013, Caligirl’s Silk Road account completed 685 finalized sales of controlled substances. Between July 11, 2013, and March 20, 2014, DEA agents purchased and seized more than 400 Oxycodone tablets and more than 900 Hydrocodone tablets from Jones. Jones shipped the controlled substances from Texas to Central Florida.
In addition to operating on Silk Road, Jones conducted his illicit drug trafficking business utilizing an encrypted and anonymized program called Bitmessage. Bitmessage is a decentralized, peer-to-peer, communications protocol that is used to send encrypted messages from one person to another or from one person to multiple persons. Bitmessage is specifically designed to hide non-content data, such as the sender and recipient of messages from intercept and passive eavesdropping.
A criminal complaint is merely an allegation that a defendant has committed a violation of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration’s Orlando District Office with assistance from the United States Postal Inspection Service in Dallas, Texas. It will be prosecuted by Assistant United States Attorney David Haas.
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Stamford Man Pleads Guilty to Federal Gun Charge, Admits Violating Supervised ReleaseRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that, on May 28, 2014, in Bridgeport federal court, GERALD COLEY, 44, of Stamford, waived his right to indictment and pleaded guilty to one count of possession of a firearm by a previously convicted felon. COLEY also admitted to violating the terms and conditions of his supervised release from a prior federal conviction.
According to court documents and statements made in court, on February 3, 2014, Stamford Police were called to the home of COLEY’s girlfriend on a report that COLEY was holding his girlfriend at gunpoint, and that their three children were with them in the residence. The police arrived at the residence and confirmed that a family friend had escorted the children outside. COLEY then permitted his girlfriend to leave the residence. He subsequently surrendered to police and advised officers that he had hidden a gun behind a radiator in the living room. A search of that location revealed a loaded Glock .40 caliber handgun.
COLEY’s criminal history includes six felony convictions, including a 2002 federal conviction for possession with intent to distribute cocaine base (“crack cocaine”), for which he was sentenced to 151 months of imprisonment and three years of supervised release. COLEY was released from federal prison in September 2012 and began serving his supervised release.
COLEY is scheduled to be sentenced by Chief U.S. District Judge Janet C. Hall in New Haven on August 20, 2014, at which time he faces a maximum term of imprisonment of 10 years for illegally possessing a firearm, and up to two years of imprisonment for violating his supervised release.
Charges against COLEY related to the hostage situation are pending in state court.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Stamford Police Department. The case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
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[email protected]Second State Auditor Charged with Theft from A Federally-funded EntityRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that another state auditor has been charged in the ongoing federal and state investigation into corruption at the Bureau of Auditing and Compliance Services for the Louisiana Department of Children and Family Services (DCFS).
KANEASHA L. GOSTON, age 38, of Baton Rouge, Louisiana, is charged in a Bill of Information with theft from a federally-funded entity, in violation of Title 18, United States Code, Section 666(a)(1)(A), and forfeiture. If convicted, the defendant faces up to 10 years imprisonment, a fine up to $250,000, forfeiture of the proceeds of the offense, and up to 3 years of supervised release following imprisonment.
During the relevant period, the defendant was an auditor with the Bureau of Auditing and Compliance Services for the Louisiana Department of Children and Family Services (DCFS), a state agency which receives over a billion dollars ($1,000,000,000) in federal funding annually. The defendant and the other auditors were responsible for safeguarding assets against theft and unauthorized use; ensuring that transactions were properly authorized and recorded properly; and ensuring compliance with management policies, as well as federal and state laws and regulations.
The Bill of Information alleges that, while employed as a DCFS auditor, the defendant engaged in a scheme with the Director of the Auditing Bureau, Delrice Augustus, to create and use fraudulent documents to request and receive reimbursement from the State of Louisiana for official travel that did not occur. According to the Bill of Information, the defendant would sign the fraudulent reimbursement requests as the requesting employee, and Augustus would sign as the approving supervisor. The State would then pay the requested amount. Augustus pled guilty yesterday in connection with this scheme and others.
This matter is being handled by the United States Attorney’s Office, the Louisiana State Police, the Louisiana Inspector General’s Office, and the Federal Bureau of Investigation. The matter is being prosecuted by Assistant United States Attorney Corey R. Amundson, who serves as the Chief of the Criminal Division, and Special Assistant United States Attorney J. Brad Casey.
DCFS leadership has fully cooperated with the investigation and has provided valuable assistance throughout. Such assistance and cooperation is highly commendable and reflects a collective determination by law enforcement and DCFS leadership to root out the corruption identified in this matter.
Rutland Man Sentenced to Five Years Imprisonment for Federal Conviction for Heroin and Crack Cocaine DistributionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated Chief Judge Christina Reiss, of the United States District Court, sentenced Ernest Murray, 51, of Rutland to five years imprisonment for conspiring to distribute heroin and crack cocaine in the Rutland area. In addition, Judge Reiss sentenced Murray to four years supervised release, to be served after he completed his five-year jail sentence. She also recommended to the Bureau of Prisons that Murray participate in the 500-hour substance abuse program for federal inmates.
Murray was charged with conspiring to distribute heroin and cocaine base in the Rutland area in 2012-13. The offense involved over 100 grams of heroin and over 28 grams of crack cocaine, either of which qualify for a five-year mandatory minimum jail sentence if proven by the Government. Murray pled guilty to this quantity level and was thus sentenced to the five year mandatory minimum. According to court records, Murray was initially charged in State court but continued to distribute drugs after he was released on state bail in July 2013. According to court records Murray used the knick name, “Rah.”Judge Reiss stated that the adverse impact of heroin in Rutland and other Vermont communities is a “tragedy” and Murray’s sentence sends a message to the community that drug distribution “will not be tolerated.” The Government stated in its sentencing memorandum that: “Heroin is wreaking havoc in Rutland and many other Vermont communities” and “a strong message from the Court needs to be continually sent to narcotic dealers that spreading their poison in the community will result in a lengthy jail sentence.” Murray acknowledged that he was getting too old to spend time in jail and stated that he was “tired of getting in trouble,” that he was “sick of being in jail,” and that he wanted to get his “life straightened out.”
The United States is represented by Assistant U.S. Attorney Joseph Perella while the defendant is represented by David Williams, Esq. This case was jointly investigated by the Vermont Drug Task Force, the Drug Enforcement Administration, and the Federal Bureau of Investigation.Rockford Man Sentenced to 420 Months in Federal Prison for Possessing Crack Cocaine and A FirearmRead the Press Release
ROCKFORD — A Rockford man was sentenced today in federal court to a total of 420 months in federal prison for committing firearms and drug trafficking offenses. DAYTON POKE, 35, was sentenced by U.S. District Judge Frederick J. Kapala to serve 360 months’ imprisonment for possessing with intent to distribute crack cocaine and for possessing a firearm as a felon. In addition, the court sentenced Poke to serve a consecutive term of 60 months’ imprisonment for possessing a firearm in furtherance of his drug trafficking crime. After serving his sentence in federal prison, Poke will be placed on 5 years of supervised release. Poke was also ordered to pay a special assessment of $300.
Poke was found guilty of possessing with intent to distribute crack cocaine, possessing a firearm as a felon and possessing a firearm in furtherance of a drug trafficking crime following a two-day jury trial on May 7, 2014. According to the evidence introduced at trial, on July 6, 2011, two Rockford Police Gang Unit detectives stopped a car driven by Poke for a traffic violation after it pulled into a residential driveway on 10tth Avenue in Rockford. During the traffic stop, the detectives searched the car and found a loaded handgun hidden underneath the driver’s seat, and crack cocaine inside the car’s center console. Prior to the stop by police, Poke had been convicted of a crime punishable by a term of imprisonment exceeding one year.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Carl J. Vasilko, Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; and Chet Epperson, Chief of the Rockford Police Department.
The government is represented by Assistant U.S. Attorneys Mark T. Karner and Joseph C. Pedersen.
Real Estate Agent Sentenced to Five Years in Prison for Conspiracy to Defraud Investors and LendersRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced the sentencing yesterday of Andrew Brosnac, age 48, of Mansfield, Texas. Brosnac, a real estate agent and investment consultant, plead guilty to conspiracy to commit bank fraud and wire fraud in connection with the sale and leaseback of businesses in Pennsylvania, New York, West Virginia, North Carolina, South Carolina, Alabama, South Dakota, California, Oregon, and Wyoming.
According to United States Attorney Peter Smith, between 2006 and 2008 Brosnac and co-conspirator Samuel Pearson, age 47, Hanover, York County, Pennsylvania, admitted using a group of companies to buy Jiffy Lube stores, automotive service businesses, convenience store/gas stations and other commercial properties, then selling them to investors in Pennsylvania and California. The investment properties included a Jiffy Lube store in Sayre, Bradford County, Pennsylvania.
In pleading guilty, Brosnac admitted arranging funding from banks and credit unions for investors to purchase the properties and then used other companies controlled by him and Pearson to lease and operate the properties for investors. Brosnac also admitted that he and Pearson provided investors and lenders with false and fraudulent financial information concerning the investment properties which induced loans and investments totaling approximately $19 million. In the plea agreement, Brosnac agreed that he received approximately $2.4 million in commissions and consulting fees from the sales of the properties.Judge Yvette Kane sentenced Brosnac to five years in prison, followed by a period of three years’ supervised release, and a special assessment of $100, and ordered Brosnac to pay to victim investors and lenders restitution totaling $2,409,924.04 representing the commissions and consulting fees that he received as a result of the offense. Under the federal Sentencing Guidelines the advisory imprisonment range was 60 months, which is also the maximum statutory term of imprisonment.
Pearson, operator of Peanut Oil, was charged separately with conspiracy to commit bank and wire fraud in a Criminal Information filed in March 2011 and pled guilty in April 2011 pursuant to a plea agreement. He is awaiting sentencing before Senior U.S. District Court Judge William C. Caldwell.The investigation was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney George J. Rocktashel.
Online Merchant Convicted for Trafficking in Endangered FishRead the Press Release
United States Attorney Laura E. Duffy announced today that Michael Loo was sentenced to 3 years of probation and a fine of $1,000, following his plea of guilty to selling the endangered Asian arowana fish (Scleropages formosus). Loo admitted that after posting an ad on Craigslist, he illegally offered an endangered Asian arowana for sale to an undercover agent for $2,800. This is the second sentencing for the illegal sale of Asian arowanas in this district in the last two weeks. In a related case, Kiem Tran, the owner of the Fish Warehouse in Westminster, California, was sentenced on May 16, 2014, to a term of two years of probation and a $1,000 fine, following his plea of guilty to Transportation of Merchandise Imported Contrary to Law. In pleading guilty, Tran admitted that he engaged in transactions with Loo involving Asian arowana, knowing that the arowana would be transported between Westminster and San Diego. Tran acknowledged that he was aware that the arowanas involved in the transactions were an endangered species and that they had been brought into the United States illegally.
During the investigation of Loo and Tran, 13 Asian arowana fish were seized by agents of U.S. Fish and Wildlife. The endangered fish were forfeited to the government, and have been kept at SeaWorld and the San Diego Zoo during the pendency of the cases.
The Asian arowana fish is found in the rivers of Southeast Asia. Due to loss of habitat and over-fishing for aquarium collections, the Asian arowana was listed among the most restrictive species in the Convention on International Trade in Endangered Species (CITES) in 1975. The fish, also known as the “bonytongue” or “dragon fish,” can grow to three feet in length and are identified by large metallic scales, double barbels on the jaw, and large pectoral fins which make it look like a dragon in flight. The fish are symbols of prosperity and luck in the Asian culture and are believed to preserve its owner from death by dying itself. The fish is commonly green but the more rare red or golden arowanas are highly prized by collectors, selling for thousands of dollars.
DEFENDANT Case Number: 12CR2245-JM Michael Loo CHARGESUnlawful Sale of Fish, a felony, in violation of Title 16, United States Code, Sections 3372 and 3373
Maximum Penalty: 20 years in custody, a $250,000 fine and a $100 penalty assessment
DEFENDANT Case Number: 14CR396-JM Kiem Tran CHARGESTransportation of Merchandise Imported Contrary to Law, a felony, in violation of Title 18, United States Code, Section 545
INVESTIGATING AGENCY
Maximum Penalty: 5 years in custody, a $20,000 fine and a $100 penalty assessmentU.S. Fish and Wildlife Service
*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Mercer Man Convicted on Child Pornography Offenses Sentenced to 40 Years in PrisonRead the Press Release
PITTSBURGH - A former resident of Mercer, Pa., has been sentenced in federal court to 40 years imprisonment, followed by supervised release for the remainder of his life, on his conviction of production of material depicting the sexual exploitation of a minor and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Earl Warner, 56.
According to Assistant United States Attorney Carolyn J. Bloch, who prosecuted the case, the evidence presented at trial established that on or about June 4, 2011, June 8, 2011, June 12, 2011, June 13, 2011, July 13, 2011, and July 23, 2011, in the Western District of Pennsylvania, Warner employed, used, persuaded, induced, enticed, and coerced one of three child victims to engage in sexually explicit conduct for the purpose of producing digital photographs and videos of such conduct. Also, on or about April 9, 2012, Warner possessed visual images and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct, on two memory cards seized during the execution of a search warrant at his home.
Prior to imposing sentence, Judge Schwab stated that Warner’s crimes were depraved and violent and that the production and storing of the photographs and videos of the sexual assault and abuse of minor children permanently recorded that abuse. The judge further described the defendant’s conduct as having created a horrific nightmare for the children to live.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Pennsylvania State Police, and the Mercer County District Attorney’s Office for the investigation leading to the successful prosecution of Warner.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Members of Drug Organization IndictedRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today the unsealing of a series of federal grand jury indictments in Operation I Spy, an extensive investigation into a drug trafficking network operating in the Baton Rouge region.
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
The following nine individuals have been indicted:
• Ronrico Terrell, Sr., also known as “Ronrico Howard,” “Co,” “Shorty,” and “Rico,” age 38, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of cocaine; possession with the intent to distribute cocaine and cocaine base; unlawful use of a communications facility; possession of a firearm in furtherance of a drug trafficking crime; and forfeiture. If convicted, Terrell faces a mandatory minimum of 10 years and up to life imprisonment, up to 5 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate his crimes, and a $13,500,000 fine. He is in custody.
• Rahkeyah Howard, also known as “Boo,” age 33, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of cocaine; possession of a firearm in furtherance of a drug trafficking crime; and forfeiture. If convicted, she faces a mandatory minimum of 10 years and up to life imprisonment, up to 5 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate her crimes, and a $6,250,000 fine. She is in custody.
• Howard S. Golphin, age 35, of Pine Grove, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; possession with the intent to distribute cocaine and cocaine base; unlawful use of a communications facility; and forfeiture. If convicted, Golphin faces a mandatory minimum of 5 years and up to 84 years imprisonment, 4 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate his crimes, and a $10,250,000 fine. He is in custody.
• Danniesa Hughes Sanders, age 35, of Pine Grove, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; possession with the intent to distribute cocaine and cocaine base; and forfeiture. If convicted, Sanders faces a mandatory minimum of 5 years and up to 80 years imprisonment, 4 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate her crimes, and a $10,000,000 fine. She is a fugitive.
• Johntha Rochon Williams, age 32, of Baton Rouge, Louisiana, is charged with distribution of cocaine and cocaine base and forfeiture. If convicted, Williams faces a mandatory minimum of 5 years and up to 60 years imprisonment, 4 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate his crimes, and a $6,000,000 fine. He is in custody.
• Bristen LaCour, also known as “Rudy,” age 24, of Baton Rouge, Louisiana, is charged with conspiracy to distribute cocaine base, distribution of cocaine base, and forfeiture. If convicted, LaCour faces up to 60 years imprisonment, 3 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate his crimes, and a $3,000,000 fine. He is in custody.
• Troy A. Bell, age 25, of Baton Rouge, Louisiana, is charged with conspiracy to distribute cocaine base, distribution of cocaine base, and forfeiture. If convicted, Bell faces up to 60 years imprisonment, 3 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate his crimes, and a $3,000,000 fine. He is in custody.
• Michael C. Finley, age 43, of Baton Rouge, Louisiana, is charged with distribution of cocaine base and cocaine and forfeiture. If convicted, Finley faces up to 60 years imprisonment, 3 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate his crimes, and a $3,000,000 fine. He is in custody.
• Eric O’Neal Selders, age 42, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine, possession with the intent to distribute cocaine, and forfeiture. If convicted, Selders faces up to 40 years imprisonment, 3 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate his crimes, and a $2,000,000 fine. He is in custody.
U.S. Attorney Green stated: “My office, together with our federal, state, and local partners, will continue to focus our energies and resources on eradicating drug trafficking organizations and the violence that comes with them. To be clear, the dangerous drug dealer will find no safe haven within the federal criminal justice system. My great appreciation to the hardworking team of agents and prosecutors who contributed to this important operation.”
Joseph Shepard, the Assistant Special Agent-in-Charge of the New Orleans Division of the U.S. Drug Enforcement Administration, stated: “Simply put, today’s indictments are the result of a successful collaborative effort by federal, state, and local law enforcement to pursue justice. The indictments should also serve as a reminder that DEA, along with its partners, remains deeply committed to aggressively and swiftly pursuing those who violate the federal drug laws.”
Chief Carl Dabadie of the Baton Rouge City Police Department stated: “This operation reflects the close coordination and cooperation among federal, state, and local law enforcement in the fight against drugs and violence in the Baton Rouge region. We look forward to continuing the united front against crime.”
District Attorney Hillar Moore of the Nineteenth Judicial District stated: “Today’s announcement is yet another example of how the region’s strong federal, state, and local law enforcement partnerships are combating violent drug organizations at every level.”
This operation is being handled by the U.S. Attorney’s Office, the U.S. Drug Enforcement Administration, and the Baton Rouge City Police Department, with assistance from the East Baton Rouge Sheriff’s Office, the Livingston Parish Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the West Baton Rouge Parish Sheriff’s Office, the Ascension Parish Sheriff’s Office, the Gonzales Police Department, the Louisiana State Police, and the U.S. Marshals Service. These matters are being prosecuted by Assistant United States Attorney Cam Le.
NOTE: An indictment is an accusation by the Grand Jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through guilty pleas
Maryland Man Sentenced to Seven Years in Prison for Voluntary Manslaughter in Traffic Fatality, Admits Striking Pedestrian in Crosswalk-Driver Was Under Influence of PCP-Read the Press Release
WASHINGTON – Woodrow R. Johnson, Jr., 53, of Capitol Heights, Md., was sentenced today to seven years in prison on a charge stemming from a traffic fatality in which he struck a pedestrian while he was on PCP, U.S. Attorney Ronald C. Machen Jr. announced.
Johnson pled guilty in February 2014, in the Superior Court of the District of Columbia, to voluntary manslaughter. He was sentenced by the Honorable Rhonda Reid Winston. Upon completion of his prison term, Johnson will be placed on five years of supervised release. During that time, he must perform 50 hours of community service at a hospital or medical examiner’s office. The judge also ordered Johnson to pay $3,000 in restitution to the victim’s family and get treatment and counseling for substance abuse.
According to the government’s evidence, on Friday, Nov. 8, 2013, at about 6:10 p.m., Johnson drove his employer’s van northbound on Benning Road SE. Johnson drove at a high rate of speed and without using his headlights, although night had fallen. Johnson collided with two other cars, causing damage to those cars and injuries to their occupants, but he did not stop.
Instead, Johnson continued to speed toward the intersection of East Capitol Street. As he approached the intersection, traffic in front of Johnson waited at the red light. Johnson swerved into the opposite lanes of traffic, that is, into the southbound lanes of Benning Road, and ran the red light at East Capitol Street. As he did this, he struck and killed Shamika Smith, 24, who was a pedestrian in a crosswalk of Benning Road, crossing from east to west. Ms. Smith suffered severe blunt impact trauma and was pronounced dead on the scene.
Johnson did not slow or stop to avoid striking Ms. Smith, or after striking her. He continued to speed northbound on Benning Road, colliding with an additional three vehicles, causing damages and injuries to their occupants.
With officers from the Metropolitan Police Department following Johnson, he left the roadway and crashed through the fence of a church’s parking lot, colliding with and damaging the church’s parked van. Officers apprehended Johnson, who was still behind the steering wheel. He was disoriented and appeared to veteran officers to be under the influence of PCP. Johnson was taken to a hospital, where he admitted that he had smoked PCP before driving.
In announcing the sentence, U.S. Attorney Machen praised those who investigated the case for the Metropolitan Police Department, including members of the Major Crash Investigations Unit and the Sixth District. He also expressed appreciation for those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Sandra Lane and Victim/Witness Advocate Jennifer Clark. Finally, he commended the work of Assistant U.S. Attorney Edward A. O’Connell, who prosecuted the matter.
14-126Manhattan U.S. Attorney Announces Charges Against Five New York City Residents in Large-Scale Counterfeit Credit Card SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Brian A. Swain, the Acting Special Agent-in-Charge of the New York Office of the United States Secret Service, announced criminal charges against five New York City residents for their participation in a large-scale counterfeit credit card scheme involving over 150 stolen credit card numbers and over half a million dollars in losses to victims. The defendants – LUIS GUSTAVO TAVAREZ, ANTHONY REYNOSO, PLINIO PINEDA LOPEZ, VINCENT D. ESPINAL, and WARNER ALVAREZ ALMANZAR – obtained victims’ credit card numbers from illicit “carding” websites in which cybercriminals sell stolen credit card numbers and other information. TAVAREZ, REYNOSO, and LOPEZ were arrested this morning and will be presented later today in Manhattan federal court before U.S. Magistrate Judge Debra Freeman. ESPINAL and ALMANZAR remain at large.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, these defendants bought stolen credit card information from cybercriminals to go on a year-long shopping spree with other people’s money. We commend the U.S. Secret Service for their work in putting an end to the shopping spree.”
U.S. Secret Service Acting Special Agent-in-Charge Brian A. Swain said: "As today’s technology continues to evolve, cybercriminals use these advances and enhancements to perpetrate an expanding range of crimes. The Secret Service is committed to deploying cutting edge investigative practices and technology in order to bring these offenders to justice."
According to the allegations in the Criminal Complaint unsealed today:
From at least April 2013 through April 2014, the defendants and their co-conspirators obtained stolen credit card information from “carding” websites, which are Internet-based forums in which users sell and exchange stolen credit card numbers, and/or directly from computer hackers. The defendants encoded that stolen account information onto counterfeit credit cards, which they subsequently used to make hundreds of unauthorized purchases of store gift cards and merchandise at national retail chains in New York, New Jersey, Pennsylvania, Connecticut, Rhode Island, and Massachusetts. The gift cards and retail items were then sold to others or returned to the stores for a cash refund.
As part of the scheme, the defendants and their co-conspirators obtained stolen account information for more than 150 credit card accounts and used that stolen information to make more than $500,000 in unauthorized purchases.
TAVAREZ, 34, REYNOSO, 25, LOPEZ, 24, and ESPINAL, 25, of Bronx, New York, and ALMANZAR, 20, of New York, New York, are each charged with one count of conspiracy to commit access device fraud, which carries a maximum penalty of seven-and-a-half years in prison, and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison. The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes, as any sentencing of the defendants would be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the Secret Service. He also thanked the Office of Homeland Security Investigations for their assistance with this case.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Alexander Wilson is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Tavarez, Luis Gustavo, et al. complaint 14 mag 1160