Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
23 July 2014
Maryland Woman Found Guilty of Voluntary Manslaughter in Fatal Crash That Took Place in 2010 Near Dupont Circle- She Left the Scene After Hitting the Victim -Read the Press Release
WASHINGTON - Jorida Davidson, 34, of Chevy Chase, Md., was found guilty by a jury today of voluntary manslaughter for causing a traffic crash in October 2010 that killed a woman near Dupont Circle, U.S. Attorney Ronald C. Machen Jr. announced.
The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Lynn Leibovitz scheduled sentencing for Sept. 19, 2014.
Davidson was found guilty in June 2011, after an earlier jury trial, of charges of negligent homicide, leaving the scene of a collision involving injury, and driving while under the influence of alcohol. That jury was unable to reach a verdict on a charge of voluntary manslaughter, leading to a retrial this month on that specific charge. In the earlier case, Davidson was sentenced to a total of three years and nine months in prison, and she is now serving that time.
According to the government’s evidence, on Oct. 7, 2010, at about 1:30 a.m., Davidson was operating a 2000 Lexus sport utility vehicle heading northbound on Connecticut Avenue NW, just south of Dupont Circle. She was driving in a lane that would take her into a tunnel that goes under Dupont Circle. At almost the last possible instant, Davidson rapidly changed lanes to avoid going into the tunnel, shifting to a non-tunnel lane on Connecticut Avenue.
At about the same time, the victim, Kiela Ryan, 24, was exiting from a legally parked car on the right side of the street. Davidson hit Ms. Ryan - making no attempt to brake or sound her horn - and then kept driving. An eyewitness got on a bicycle, pursued Davidson’s vehicle and observed the defendant and made a mental note of her car’s tag number.
Davidson, meanwhile, continued driving to her condominium building in Chevy Chase, Md. Police from Montgomery County, Md., found her in the basement garage there, sitting in her vehicle, at about 2:30 a.m. The right front headlight of the vehicle was damaged. The ignition was off, and Davidson had the keys to the Lexus in her hand. She smelled of alcohol and claimed not to know what had happened.
After she was struck, Ms. Ryan was taken to a hospital, where she later died.
In announcing this week’s verdict, U.S. Attorney Machen commended those who worked on the case from the Metropolitan Police Department (MPD). He also cited the efforts of the Montgomery County, Md. Police and the District of Columbia Office of the Chief Medical Examiner. In addition, he acknowledged the work of those who handled the case in the U.S. Attorney’s Office, including Paralegal Specialist Sandra Lane; Information Technology Specialists Anisha Bhatia and Aneela Bhatia; David Foster and Marcia Rinker, of the Victim/Witness Assistance Unit, and Interns Brian Ganjei and Jacob Hjelmaas. He also expressed appreciation for the assistance provided by Assistant U.S. Attorneys John Mannarino and Lauren Bates of the office’s Appellate Division. Finally, he praised the work of Assistant U.S. Attorneys Michael Liebman and Edward O’Connell, who investigated and prosecuted the case.
14-171Manhattan U.S. Attorney Charges 27 in the Fordham/Kingsbridge Neighborhoods of the Bronx, Including 20 Members and Associates of the Trinitarios Street Gang, with Narcotics and Firearms OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, William J. Bratton, the Commissioner of the Police Department for the City of New York (“NYPD”), James J. Hunt, the Acting Special Agent-in-Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), Thomas Cannon, the Special Agent-in-Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and James T. Hayes, Jr., the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), announced charges today against 27 individuals who sold narcotics and used guns in the Fordham and Kingsbridge areas of the Bronx, 20 of whom were members and associates of the Trinitarios street gang (the “Trinitarios” or the “Gang”).
Manhattan U.S. Attorney Preet Bharara said: “As alleged, for approximately five years, members and associates of the Trinitarios maintained a vise-like grip on narcotics trafficking in the Fordham and Kingsbridge areas of the Bronx, and controlled their territory through violence. Gangs like the Trinitarios are a cancer on New York’s neighborhoods – both in the physical harm they inflict and the atmosphere of despair they create. Today’s arrests again demonstrate this Office’s commitment to eradicating the scourge of gangs throughout the Southern District of New York and to giving back to residents the peaceful enjoyment of their communities.”
NYPD Police Commissioner William J. Bratton said, “Gangs and illegal drug trafficking compromise the quality of life in our communities. Thanks to the collaborative efforts of the investigators and prosecutors involved in this case, their operation has been shut down and they will be brought to justice.”
DEA Acting Special Agent-in-Charge James J. Hunt said: “Residents of Fordham and Kingsbridge areas of the Bronx were unwilling victims of gun violence and intimidation imposed by the Trinitarios gang’s drug operations. This operation is the epitome of law enforcement collaboration between the US Attorney’s Office Southern District of New York, New York City’s Finest, local and federal law enforcement to combat gang violence and reclaim these neighborhoods from drug trafficking.”
ATF Special Agent-in-Charge Thomas Cannon said: “The arrests today mark the latest collaborative efforts of law enforcement against the scourge of gang violence, in particular the alleged criminal activities of members and associates of the Trinitarios. This investigation, which spans many years and has resulted in the arrests of over 100 gang members, continues to uncover the wanton violence and extensive narcotics trafficking this criminal organization and its associates committed with impunity on the streets of New York. The ATF is grateful to our law enforcement partners at the DEA, HSI, the NYPD and the U.S. Attorney’s Office for their investigative focus and dedication throughout. Today, New York City residents can rest knowing that members of the Trinitarios responsible for victimizing the citizens of New York City and beyond have been brought to justice.”
ICE HSI New York Special Agent-in-Charge James T. Hayes, Jr. said: “Today’s arrest disrupt the illegal drug trafficking and violence of TREY 18, a particularly dangerous contingent of the Trinitarios criminal street gang. HSI is committed to working collaboratively across all levels of law enforcement to combat the violence and chaos caused by transnational criminal organizations such as the Trinitarios."
Two Indictments (“Indictment One” and “Indictment Two”) and a Complaint were unsealed today in Manhattan federal court.
According to Indictment One, from approximately 2009 to the present, the Trinitarios operated in the Fordham and Kingsbridge neighborhoods of the Bronx, among other locations. The Trinitarios operating in these neighhorhoods during this time period were members of two related “sets,” or factions of the Gang, called the “18 Treys” and “Greenbridge.” Members of the 18 Treys and Greenbridge sets, and their associates, committed acts of violence, such as shootings, against rival gangs – such as the “Eden Boys” gang – in order to protect their drug-trafficking operation, and to protect fellow members and associates of the Trinitarios. Members and associates of the 18 Treys and Greenbridge sets controlled drug trafficking in the Fordham and Kingsbridge neighborhoods of the Bronx. ANDY SOSA, a/k/a “Sosa Gucci Prada,” and NELSON VERAS, a/k/a “Monkey,” a/k/a “Monkey White,” were leaders of the Trinitarios in these neighborhoods. MICKEY VALDEZ, a/k/a “Mikey,” was one of the shooters on behalf of the Gang, enforcing the Gang’s control over these neighborhoods, as well as the Gang’s drug trafficking, through violence.
ANDY SOSA, a/k/a “Sosa Gucci Prada,” MICKEY VALDEZ, a/k/a “Mikey,” NELSON VERAS, a/k/a “Monkey,” a/k/a “Monkey White,” OSCAR ALMANZAR, a/k/a “Heavy,” JIMMY KELLY, AKBAR HUSSAIN, a/k/a “AK,” DARWIN AYALA, a/k/a “Fatulo,” JOSHUEL RODRIGUEZ, a/k/a “Alpa,” MIGUEL CARELA, a/k/a “Bone,” a/k/a “Bonet,” JUSTIN RAMIREZ, a/k/a “E.T.,” JAMES PAULINO, LUCAS CHAJECKI, a/k/a “Luc,” OMAURIS CABRERA, a/k/a “Oh Boy,” EDWIN MERCEDES, a/k/a “Mela,” a/k/a “Melasas,” CHRISTOPHER PEREZ, a/k/a “Flaco,” ARGENIS RODRIGUEZ, ISMEAL VASQUEZ, a/k/a “Ish,” MICHAEL ALVARADO, a/k/a “Dirt,” JORGE ARTILES, and ARGENIS HENRIQUEZ, a/k/a “Shysty,” are charged in Indictment One with conspiring to sell cocaine, heroin, crack, marijuana, oxycodone, and suboxone. SOSA, VERAS, RODRIGUEZ, CARELA, and RAMIREZ are also charged with carrying, brandishing, and discharging a firearm, and aiding and abetting the same, in connection with the charged narcotics conspiracy.
In Indictment Two, FRANCIS SANTOS, a/k/a “Lucky,” MANUEL SANTOS, and RALPHAEL GERMAN, a/k/a “Capo,” are charged with selling cocaine and marijuana in the vicinity of Andrews Avenue in the Bronx.
In the Complaint, SAGE PEREZ, a/k/a “Mango,” DANIEL BERROA, a/k/a “Bucks,” YAMIL LUNA, a/k/a “Still,” and JULIAN REYNOSO, a/k/a “Juju,” are charged with selling marijuana in the vicinity of West Kingsbridge Road in the Bronx.
During the arrests, agents and officers seized, among other evidence, prescription pills, heroin, and narcotics packaging paraphernalia. To date, in this case, agents and officers have seized, among other evidence, numerous firearms with ammunition, two machetes, multiple knives, and quantities of marijuana, cocaine, heroin, and ecstasy.
In a coordinated strike, 19 defendants were arrested in New York late last night and early this morning. They will be presented later this afternoon in Manhattan federal court. OMAURIS CABRERA is already in federal custody on a separate narcotics charge, and remains in custody. FRANCIS SANTOS, OSCAR ALMAZAR, EDWIN MERCEDES, and ARGENIS HENRIQUEZ are already in custody on state charges. As of the time of this press release, the following defendants are still being sought: Nelson Veras, Michael Alvarado, Jorge Artilles, Justin Ramirez, Argenis Rodriguez, Lucas Chajecki, and Manuel Santos. A chart identifying each defendant, the charges, and the maximum penalties is attached to this release. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
The indicted cases are assigned to U.S. District Judges Shira A. Scheindlin and Victor Marrero.
Today’s charges stem from a long-term investigation, “Operation Patria,” conducted by federal and local law enforcement officers working with the U.S. Attorney’s Office for the Southern District of New York. The charges unsealed today come approximately two years after the filing of the initial indictment in this case, which charged 50 members and associates of the Trinitiarios Gang with racketeering, narcotics, and firearms offenses, and approximately one year after the superseding indictment, which charged 26 additional defendants with nine murders. A total of 104 defendants have been charged in this case between the original indictment and the charges unsealed today. Aside from those defendants charged today for the first time in this case, all but 18 of those defendants have already been convicted at trial or by guilty plea.
In addition, in 2009 and 2010, this Office charged a combined 43 members and associates of the Manhattan faction of the Trinitarios Gang with racketeering, murder in aid of racketeering, conspiracy to commit murder in aid of racketeering, assault and attempted murder in aid of racketeering, narcotics conspiracy, and firearms offenses. All of those individuals have pleaded guilty to charges associated with that case, including the May 2012 guilty pleas of Jonathan Feliz, who was alleged to have been the leader of the Manhattan faction of the Trinitarios Gang, to a mandatory minimum term of 30 years in prison for racketeering offenses committed in connection with his leadership of the Gang, and Louinsky Minier, also one of the Gang’s leaders, to charges related to the November 23, 2006, murder of Roy Abreu, which occurred on 162nd Street and Broadway in Manhattan.
Since 2009, this Office has charged at least a combined 147 members and associates of the Trinitarios Gang, including Leonides Sierra, a/k/a “Junito,” the Gang’s national leader, who pled guilty.
Mr. Bharara praised the outstanding investigative work of the DEA, the NYPD, the ATF, and HSI/ICE. He added that the investigation is continuing.
The Office's Violent and Organized Crime Unit is overseeing the case. Assistant U.S. Attorneys Rachel Maimin and Justina Geraci are in charge of the prosecution.
The charges contained in the Indictments and Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Click here to view chart(s)
U.S. v. Daniel Berroa et al Complaint
U.S. v. Francis Santos et al. Indictment
U.S. v. Andy Sosa et al. IndictmentLeader of International Meth Trafficking Ring SentencedRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Heriberto Albarran Caro, aka “Colorin”, 36, born in Chihuahua, Mexico, but residing illegally in Texas and Colorado, was sentenced in U.S. District Court today to 210 months’ imprisonment for leading an international drug trafficking conspiracy that brought approximately six kilograms of crystal methamphetamine from the southwestern U.S. to the Cincinnati area between July and September 2013.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and James V. Allen, Acting Special Agent in Charge, Drug Enforcement Administration (DEA), announced the sentence imposed today by Chief U.S. District Judge Susan J. Dlott.
“The government notes that Caro orchestrated the transport and delivery of approximately six kilograms of what DEA advises is the purest crystal methamphetamine ever seized in the Southern District of Ohio,” Assistant U.S. Attorney Karl Kadon told the court prior to today’s sentencing hearing.
DEA agents and task force officers arrested Caro and four other defendants – Bernardo Olivares-Cepeda, 36, Corpus Christi, Texas; Jose Ayvar-Ramos, 36, born in San Pedro, Mexico but residing illegally in Texas and Oklahoma; Alberto Sanchez, 37, born in Caahuila, Mexico but residing illegally in Texas; and Ivan De Los Santos, 24, born in San Pedro, Mexico but residing illegally in Texas – at a Cincinnati-area hotel in September 2013 as a result of an investigation into a drug trafficking organization operating in Texas, Colorado, Mexico and Ohio. All five defendants pleaded guilty. Olivares-Cepeda was sentenced to 200 months in prison. Jose Ayvar-Ramos was sentenced to 188 months in prison. De Los Santos was sentenced today to 60 months in jail followed by three years of supervised release. Sanchez is scheduled for sentencing on September 18.
According to court documents, Caro obtained the methamphetamine, as well as quantities of cocaine and marijuana, from unknown Mexican sources of supply with ties to the Gulf Cartel and the Zetas. Ayvar-Ramos arranged to bring the vehicle containing the meth into southern Ohio in September 2013, accompanied by a woman and a child. Ayvar-Ramos hired Sanchez and De Los Santos to perform counter-surveillance to protect against the detection of the conspiracy by law enforcement.
U.S. Attorney Stewart commended the investigation by the DEA and agencies participating in the DEA Task Force including the Cincinnati Police Department, as well as the Ohio State Highway Patrol and the DEA office in Colorado Springs who assisted in the investigation. He also commended Assistant U.S. Attorney Karl Kadon, who represented the United States in the case.
###Las Vegas Man Sentenced to 12+ Years in Federal Prison for Possessing Firearms and Dealing CocaineRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man well-known to local police because of his lengthy criminal history and street gang affiliations, was sentenced today to 155 months in federal prison and five years of supervised release, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Ryan Walton, aka Ryan McLemore, 32, of Las Vegas, was sentenced by U.S. District Judge Andrew P. Gordon. Walton pleaded guilty on April 23, 2014, to three counts of possession of a firearm by a convicted felon, two counts of possession of cocaine with intent to distribute, and one count of use or possession of a firearm in relation to a drug trafficking offense. Walton, who has been connected to the Las Vegas street gang known as the Gerson Park Kingsmen, has had four drug convictions, four firearm-related convictions, and three violent crime convictions in Clark County, Nev. since 2001.
“This case is an excellent example of how we are working together with our federal and local law enforcement partners and the District Attorney’s Office to identify dangerous and recidivist felons,” said U.S. Attorney Bogden. “Despite numerous, previous felony convictions, the defendant continued to endanger the community by possessing firearms in connection with violence and drug dealing. Thanks to our Project Safe Neighborhoods program partnerships and the Safe Streets Task Force, this defendant will no longer be a threat to our community.”
According to the defendant’s guilty plea agreement, three of the counts of conviction resulted from an incident on Sept. 26, 2007, when Las Vegas Metropolitan Police Department (LVMPD) detectives executed a search warrant at his residence and found cocaine, drug paraphernalia, and a rifle. Two more counts of conviction resulted from incidents on Dec. 22 and Dec. 27, 2010, in which LVMPD detectives and Nevada Division of Parole and Probation Officers executed a search of the vehicle Walton drove, and found two semi-automatic handguns and several loaded extended ammunition magazines, body armor, cocaine, marijuana, and drug distribution paraphernalia. The last count of conviction resulted from an incident on Aug. 8, 2012, when North Las Vegas Police Department Officers made contact with Walton as he was driving with a suspended license, and found two semi-automatic handguns in the vehicle, both of which had been reported as stolen.
This case was investigated by the FBI, the Las Vegas Metropolitan Police Department and the North Las Vegas Police Department, as part of the Safe Streets Task Force and Project Safe Neighborhoods program. The case was prosecuted by Assistant U.S. Attorney Cristina D. Silva.Lakeland Convicted Felon Found Guilty of Possessing A FirearmRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that a federal jury today found Ronald Deandrea Solomon (29) guilty of being a felon in possession of a firearm. He faces a minimum mandatory penalty of 15 years, up to life in federal prison. Solomon was indicted on April 17, 2014.
According to testimony presented at trial, law enforcement officers made consensual contact with Solomon and a group of other men hanging out in the parking lot of a Lakeland apartment building. When law enforcement drove into the complex, they observed Solomon walk away from the group, remove a firearm from his waistband and toss it under a nearby vehicle. At the time of the incident, Solomon was a previously convicted felon and therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Stacie B. Harris.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is another example of ATF’s Frontline Strategy to impact violent crime within our communities.
Jury Finds State Prison Guard Lied to Federal Agents Trying to Locate A FugitiveRead the Press Release
PITTSBURGH – Ralph Currington, a 43-year-old former state prison guard in Pittsburgh, was convicted at the conclusion of a federal jury trial for making false statements and representations to United States Marshals Service deputies who were trying to locate a fugitive who was wanted for heroin trafficking, United States Attorney David J. Hickton announced today.
On Sept. 23, 2013, Currington was interviewed by Deputy United States Marshals who were attempting to locate a fugitive for whom there was an outstanding federal arrest warrant for heroin trafficking. During the interview, Currington made false statements and representations regarding the last contact he had with the fugitive, the last time he saw the fugitive, and his knowledge of the location of the fugitive. It is unlawful to make such false statements to a federal law enforcement officer. As was explained by testimony during the trial, Currington’s false statements could have significantly misdirected the investigation into the location of the fugitive. Currington was a state prison guard at the time the false statements were made.
The law provides for a maximum total sentence of up to five years in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The United States Marshals Service and the Drug Enforcement Administration conducted the investigation leading to the convictions in this case.
Jury Delivers Verdicts in Ticket Fixing TrialRead the Press Release
PHILADELPHIA – A federal jury today delivered its verdicts against seven defendants charged in a ticket fixing conspiracy involving the former Philadelphia Traffic Court. Jurors found three defendants - Michael Lowry, Robert Mulgrew, and Thomasine Tynes – guilty of committing perjury before the federal grand jury and defendant Willie Singletary guilty of lying to the FBI when questioned about ticket fixing at Traffic Court. Three defendants – Michael Sullivan, Robert Moy, and Mark A. Bruno – were found not guilty.
Co-defendants H. Warren Hogeland, Kenneth Miller, Fortunato Perri, William Hird, and Henry P. Alfano previously pleaded guilty.
“We respect the jury’s verdict in this case and will continue our efforts to root out corruption in Philadelphia and this district,” said United States Attorney Zane David Memeger. “We are pleased that the jury convicted these former judges of the serious offenses of lying under oath and lying to the FBI.”
Sentencing hearings have not yet been scheduled. Each defendant faces a maximum possible statutory sentence of not more than five years and/or a fine.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Denise S. Wolf and Anthony J. Wzorek.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Jury Convicts Alamo Woman on Multiple Firearms ChargesRead the Press Release
BROWNSVILLE, Texas - Yadira Garcia, 35, has been convicted of all six counts of making false statements on firearm records, announced United States Attorney Kenneth Magidson along with Robert W. Elder, special agent in charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). A federal jury convicted Garcia, of Alamo, late yesterday following two days of trial and approximately 30 minutes of deliberation.
In August 2013, Garcia purchased five assault rifles over a six-day period from two federally licensed firearms dealers located in Harlingen and McAllen and paid more than $5,000 in cash. Within the same week, Garcia attempted to buy two more rifles and was denied sale due to the suspicion of straw purchasing the firearms.
In connection with the purchases, Garcia executed three different Firearms Transaction Records (4473 Forms) which must be filled out when a person purchases a firearm from a Federal Firearms Licensee (FFL). On all three forms, Garcia certified she was the actual buyer and provided an address in Pharr.
Garcia admitted to agents that she purchased the rifles and claimed she had done so using bingo winnings. However, Garcia gave inconsistent statements regarding the whereabouts of those firearms. She initially claimed they were with a relative, then changed her story and indicated they were stashed with a friend whose name, location and contact information she could not provide. Garcia purchased three AR-15 and two AK-47 style rifles, considered “weapons of choice” by drug trafficking organizations in Mexico. One of the AK-47s was recovered by Mexican law enforcement in Reynosa, Tamaulipas, Mexico on Aug. 27, 2013, only 20 days after she had Garcia purchased it. Garcia admitted she lied about her current residence address on her signed 4473 forms.
U.S. District Judge Andrew S. Hanen, who presided over the trial, has set sentencing for Oct. 27, 2014. At that time, she faces up to five years in federal prison and a $250,000 fine for each count of conviction. She was permitted to remain on bond pending that hearing.
ATF investigated. Assistant United States Attorneys David A. Lindenmuth and Carrie Wirsing are prosecuting the case.
Joplin Man Indicted for Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man was indicted by a federal grand jury today for receiving and distributing child pornography over the Internet.
Frank Edwin Ness, 44, of Joplin, was charged in an indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Ness on July 17, 2014.
Today’s indictment alleges that Ness received and distributed child pornography over the Internet between Jan. 1, 2004, and July 16, 2014.
According to an affidavit filed in support of the original criminal complaint, law enforcement officers executed a search warrant at Ness’s residence on July 16, 2014, and seized his desktop computer. Investigators found at least 124 videos containing child pornography when they previewed the computer, the affidavit says.
The indictment also contains a forfeiture allegation, which would require Ness to forfeit to the government any property used to commit the alleged offense, including a desktop computer.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cyber Crimes Task Force and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
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.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Joplin Couple Indicted for Sexual Exploitation of Another Child VictimRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the wife of a Joplin, Mo., man who was previously indicted on child pornography charges was indicted along with her husband by a federal grand jury today for the sexual exploitation of a second child victim.
James Hajny, 49, and his wife, Gina Hajny, 39, both of Joplin, were charged in a four-count indictment returned by a federal grand jury in Springfield, Mo. Today’s superseding indictment replaces the original indictment returned on June 10, 2014. The superseding indictment adds Gina Hajny as a co-defendant and charges both defendants with an additional count of sexual exploitation of a minor.
James and Gina Hajny are each charged in the additional count. Today’s indictment alleges that they used a minor, identified as Jane Doe #2, to produce child pornography.
Today’s superseding indictment also contains three counts from the original indictment. The indictment alleges that James Hajny used a minor victim, identified as “Jane Doe #1,” to produce child pornography in May 2014. James Hajny is also charged with distributing pornographic images of Jane Doe #1 over the Internet between Dec. 12, 2013, and May 12, 2014. The indictment also charges James Hajny with possessing child pornography on May 19, 2014.
The indictment contains a forfeiture allegation, which would require James and Gina Hajny to forfeit to the government any property used to commit the alleged offenses, including a laptop computer, two tablet computers, two cell phones, an iPod and a digital camera.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and the Joplin, Mo., Police Department.
Project Safe Childhood
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.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Jamaican National Convicted of Marriage FraudRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Nerene Erica Harrison (32, St. Ann’s Bay, Jamaica) guilty of marriage fraud. Harrison faces a maximum penalty of 5 years in federal prison. Her sentencing hearing is scheduled for October 23, 2014. Harrison was indicted on November 13, 2013, along with Robert Kenneth Scott Cruz.
According to testimony and evidence presented at trial, Harrison, a Jamaican national, came to the United States in 2007 on a temporary work visa. After her visa expired, Harrison offered Cruz, a United States citizen, $6,000 to marry her. They were married on August 15, 2011 and subsequently petitioned for Harrison to receive lawful permanent resident status based on the marriage.
Cruz pleaded guilty on March 27, 2014. He faces a maximum penalty of 5 years in federal prison. A sentencing hearing has been set for November 11, 2014.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and United States Citizenship and Immigration Services (USCIS). It is being prosecuted by Assistant United States Attorney Carlton C. Gammons and Josephine W. Thomas.
If You Believe You Are A Victim of the Alleged Fraud Scheme Involving TelexFree, Please Fill Outthe Questionnaire at the Link Below, so Your Claim Can Be ReviewedRead the Press Release
Telexfree Founders Indicted on Charges of Running a Massive Pyramid SchemeBoston - James M. Merrill and Carlos N. Wanzeler, principals of TelexFree, Incorporated, and related entities, were indicted today for wire fraud and conspiracy to commit wire fraud.
Merrill, 53, of Ashland, Mass., and Wanzeler, 45, of Northborough, Mass., were charged by a federal grand jury in a nine-count indictment filed in U.S. District Court in Worcester, Mass.
According to the indictment, TelexFree, Inc., and TelexFree LLC (collectively, “TelexFree”) provided “voice-over-internet-protocol” (“VOIP”) telephone services that allowed customers to use the Internet to make phone calls. The indictment alleges, however, that TelexFree actually operated as a pyramid scheme, in which its ongoing operations were supported, not by actually selling TelexFree’s VOIP product, but by bringing in a constant stream of new investor dollars. Between early 2012 and March 2014, TelexFree purported to aggressively market its VOIP service by recruiting thousands of “promoters” to post ads for the product on the Internet. Each promoter was required to “buy in” to TelexFree at a certain price, after which they were compensated by TelexFree, under a complex compensation structure, on a weekly basis so long as they posted ads for TelexFree’s VOIP service.
It is further alleged that over the course of the fraud TelexFree derived only a fraction of its revenue from sales of VOIP service and the vast majority of it from new people buying into the scheme, and so TelexFree was able to pay the returns it had promised to its existing promoters only by bringing in money from newly-recruited promoters.
The indictment includes eight charges of wire fraud, based on Merrill, in December 2013, wiring about $10,000,000 in TelexFree funds to personal accounts belonging to him and Wanzeler. The indictment also specifies approximately 70 assets to be forfeited as proceeds of the alleged fraud scheme, or assets traceable to such proceeds, including approximately $140,000,000 seized from TelexFree’s accounts and various real assets, such as homes, condominiums, cars and two boats.
The charging statute provides a sentence of no greater than 20 years in prison on each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors. Merrill was previously arrested on similar charges on May 9, 2014, and remains released on bail. A federal arrest warrant was issued today for Wanzeler, who is a fugitive.
United States Attorney Carmen M. Ortiz, Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Cory Flashner and Andrew Lelling of Ortiz’s Worcester Branch Office and Economic Crimes Unit, respectively. The United States Attorney’s Office received valuable assistance from the Securities & Exchange Commission in the course of investigating this case.
http://www.fbi.gov/stats-services/victim_assistance/seeking-victim-information/telexfree-inc.-case
The details contained in indictment are allegations. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Go here for Indictment information
Hudson County, N.J., Man Charged with Production and Distribution of Child PornographyRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was charged today for allegedly posing as a teenage boy to solicit underage females online to produce images of themselves engaged in sexually explicit conduct and then distributing those images to others, U.S. Attorney Paul J. Fishman announced.
Erik Vanderbeck, 47, of Bayonne, New Jersey, was charged by complaint with one count of sexual exploitation of a child and one count of distribution of child pornography. He is scheduled to appear in Newark federal court today before U.S. Magistrate Judge James B. Clark III.
According to the Complaint filed in Newark federal court:
Vanderbeck allegedly met various minor females through online chat applications and in Internet chat rooms while pretending to be a teenage boy. Over the course of their correspondence, Vanderbeck would send the girls nude images and ask them to send him nude images of themselves. Once Vanderbeck received nude images, he would threaten to kidnap the victim or post her nude images online unless she sent more. When one of the victims threatened to report Vanderbeck to the authorities, he replied, “The cops will never catch me.” Vanderbeck also allegedly used nude images that he received from one minor victim to pretend to be a teenage girl named “Megan” in chats with other individuals online. Vanderbeck also distributed sexually explicit images, which he claimed to be of Megan.
Law enforcement officers executed a search warrant at Vanderbeck’s home in Bayonne on July 22, 2014. They recovered computer equipment belonging to Vanderbeck containing images appearing to be of child pornography.Law enforcement officers have interviewed several of Vanderbeck’s victims, who said they produced images of child pornography out of fear and in response to his threats.
The charge of sexual exploitation of a child carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison and a $250,000 fine. The charge of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 20 years, and a $250,000 fine.
U.S. Attorney Fishman credited postal inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates in Newark, and the Bayonne Police Department, under the direction of Chief Drew Niekrasz, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
14-261
Defense counsel: Carol Gillen, Esq., Assistant Federal Public Defender, Newark
Vanderbeck, Erik Complaint
Guilty Plea in Sex Trafficking CaseRead the Press Release
PHILADELPHIA – Christian Dior Womack, a/k/a “Gucci Prada,” 30, of Chester, PA, pleaded guilty today to all counts in connection with sex trafficking females for prostitution. Womack decided to plead guilty during jury selection. He operated a prostitution venture, in Philadelphia and elsewhere, recruiting young females, one of whom was a minor, to work as prostitutes. He also engaged in acts of physical violence, coercion, and threats of physical harm to maintain the participation of the females. He pleaded guilty today to sex trafficking of a minor and sex trafficking by force.
Charged with Womack was Rashidah Brice, a/k/a “Camille,” a/k/a “Milly,” 24, also of Chester, PA. As part of their venture, Womack and Brice allegedly created internet advertisements in which they advertised these females as available for purchase for purposes of prostitution. The advertisements featured pictures of the females scantily clad, and provided a phone number to call to arrange a meeting with the females. Brice previously pleaded guilty.
A sentencing date for Womack has not yet been scheduled. A sentencing hearing for Brice is scheduled for August 21, 2014. Both defendants face a mandatory minimum sentence of 15 years in prison with a maximum possible sentence of life in prison, five years of supervised release, and possible fines.
The case was investigated by the FBI, the Philadelphia Police Department Special Victims Unit, and the Tinicum Township Police Department. It is being prosecuted by Assistant United States Attorneys Michelle Morgan and Melanie Babb Wilmoth.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Georgia Woman Pleads Guilty in Mystery Shopper ScamRead the Press Release
PITTSBURGH - A Georgia woman pleaded guilty in federal court to a charge of fraud conspiracy, United States Attorney David J. Hickton announced today.
Monica Mason, 49, of Lilburn, Ga., pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, Mason was involved in a Nigerian “Mystery Shopper” scam whereby her coconspirator Shawn Foote knowingly prepared and addressed fraudulent mail containing counterfeit instruments to victims, who believed they were acting as mystery shoppers. The victims unwittingly received the counterfeit commercial and Postal money orders and checks and cashed them to make small purchases for purposes of evaluating the commercial services provided. They then wire transferred excess funds back to Mason, Foote, and others. After these transactions, the money orders and checks were returned as counterfeit by the victims’ banks and they were left to repay the bank from their own funds.
Judge Bissoon scheduled sentencing for Nov. 6, 2014 at 10 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, 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.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and Homeland Security Investigations conducted the investigation that led to the prosecution of Monica Mason.
Friendswood Man Convicted of Receipt and Possession of Child PornographyRead the Press Release
GALVESTON, Texas - Miguel Angel Macias, 53, formerly of Friendswood, has entered a guilty plea to receipt and possession of child pornography, announced United States Attorney Kenneth Magidson.
The investigation into Macias began as a result of an investigation into a website and message board by investigators in San Diego, Calif. During that investigation, a computer was traced to Macias and identified as accessing the message board and downloading images of child pornography.
A search warrant was conducted at his Friendswood home. At that time, officers seized a laptop computer, a number of CDs and several external hard drives which were found to contain more than 2,000 images and more than 100 videos containing child pornography.Macias admitted to downloading and viewing child pornography.
U.S. Circuit Judge Gregg Costa, sitting by designation, has set sentencing for Oct. 7, 2014. At that time, Macias faces at least five and up to 20 years on the receipt charges and up to 10 years imprisonment for possession of child pornography. Both convictions also carry a possible $250,000 maximum fine. Upon completion of any prison term imposed, Macias also faces a maximum of life on supervised release during which the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet. He will also be required to register as a sex offender.The charges against Macias were the result of an investigation conducted by Homeland Security Investigations, Friendswood Police Department and the Houston Metro Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Robert Stabe, as 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.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Fort Worth Man Admits Running Oil and Gas Ponzi SchemeRead the Press Release
Approximately 45 Investors Invested Approximately $5.8 Million in Fraud Scheme
FORT WORTH, Texas — A Fort Worth man who was arrested in Oregon, where he fled when a fraudulent oil and gas Ponzi scheme he was running began to unravel, pleaded guilty today to one count of wire fraud, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Jeffrey Watts, aka “Jeff Watts,” 41, appeared before U.S. Magistrate Judge Jeffrey L. Cureton this morning and pleaded guilty to a felony information, filed on July 8, 2014, charging one count of wire fraud. He faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine and restitution. Watts has been in custody since his arrest in Eugene, Oregon, in early May 2014 on charges outlined in a related federal criminal complaint filed in March 2014. Sentencing is set for December 9, 2014.
According to documents filed in the case, beginning in fall 2011 and continuing to December 2013, Watts engaged in a scheme to defraud involving oil and gas investments. He presented himself as the founder and principal of Blue Alpha Energy, falsely representing to investors that the company had invested in oil and gas well in Texas and was owned and/or operated by Arrowhead Productions, a legitimate, but unrelated company based in Fort Worth.
Watts established Blue Alpha Energy and a group of related sham entities to perpetrate his fraud scheme by leading investors to believe they were investing in oil and gas wells owned and/or operated by Arrowhead Productions. For example, Watts represented to investors that Arrowhead LG, LLC was an assumed name or “d/b/a” of Arrowhead Productions, and he possessed documents that bore the purported signature of the actual president of Arrowhead Productions, as the President of Arrowhead LG, LLC.
Watts falsely portrayed these sham entities as legitimate, third party lenders or investors in his alleged oil and gas interests, and he transferred investor funds between these accounts and the accounts of Blue Alpha Energy.
Watts falsely represented to investors that they would receive monthly distributions according to their ownership percentage in oil and gas wells owned and/or operated by Arrowhead Productions. He also duped his business partners and employees into believing his fraudulent representations, causing them to disseminate printed investment information that conveyed his misrepresentations. To further the scheme, Watts made monthly payments to investors in Blue Alpha Energy, using investor funds transferred between bank account of the sham entities he controlled.
Between 2011 and 2013, approximately $5.8 million in investments was raised from approximately 45 investors. However, in December 2013, several investors in Blue Alpha Energy learned Watts never had investment agreements with Arrowhead Productions and, in fact, funneled the investor funds into the sham business entities he controlled.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of the FFETF, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The FBI investigated the case; Assistant U.S. Attorney Nancy Larson is in charge of the prosecution.
Former University School of Jackson Employee Pleads Guilty to Wire and Tax FraudRead the Press Release
Memphis, TN – Jessica Nicole Pinkerton, age 33, of Humboldt, Tennessee, pleaded guilty today to a criminal information charging her with one count of wire fraud and one count of tax fraud, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee; A. Todd McCall, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation; and Christopher A. Henry, Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office.
According to the criminal information and statements made in court, Pinkerton was employed as a financial services manager at the University School of Jackson (USJ) from 2008 to 2014. Beginning in late 2009 through early 2014, Pinkerton, in her capacity as financial services manager, initiated Automatic Clearing House (ACH) transfers of USJ funds into her personal bank account. Pinkerton also filed a 2013 IRS form 1040, stating that her earned income was $29,321 when it actually was $195,689.71. As a part of the plea agreement filed today, Pinkerton will owe restitution of $606,375.33 to the University School of Jackson and $143,168.37 to the Internal Revenue Service.
“This case underscores our unwavering commitment to bring to justice those who steal from others and brazenly line their pockets by committing white collar crimes,” said United States Attorney Stanton. “When employees such as Jessica Pinkerton scheme to fraudulently divert funds from employers, the United States Attorney’s Office will work with law enforcement partners to ensure those individuals are held accountable and prosecuted to the full extent of the law.”
“This plea is the result of the hard work of the FBI and our law enforcement partners in the pursuit of those who use fraud to line their pockets with other people’s money,” said Special Agent in Charge McCall. “It should send a signal that criminal behavior like this will not go undetected. We will find you, catch you, and you will be held accountable for your actions.”
“The IRS enforces the nation’s tax laws, but also takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others,” stated Special Agent in Charge Henry. “No matter what the source of income, all income is taxable. The prosecution of individuals who intentionally conceal income and evade taxes is a vital element of the IRS’ enforcement strategy. We are pleased with the successful resolution of this investigation due to the cooperative efforts of our law enforcement partners.”
Pinkerton faces a maximum penalty of 20 years imprisonment, a $250,000 fine, and three years supervised release. Sentencing is scheduled for October 23, 2014 at 1:15 p.m. before Chief United States District Judge J. Daniel Breen.
This case was investigated by the Federal Bureau of Investigation – Jackson Resident Agency, and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorney Victor L. Ivy on behalf of the government.Former Sweetwater Police Detective Sentenced for Role in Credit Card Fraud and Aggravated Identity Theft SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the sentencing of William Garcia, 39, of Miami, a former Sweetwater Police Department detective, for his role in a credit card fraud and aggravated identity theft scheme.
On April 21, 2014, a jury in federal court found Garcia guilty of twelve counts of the fifteen count indictment. Specifically, the defendant was found guilty of: conspiring to produce, use, or traffic in one or more counterfeit access devices, in violation of Title 18, United States Code, Section 371; use of a counterfeit access device, in violation of Title 18, United States Code, Section 1029(a)(1); and ten counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). United States District Judge Federico A. Moreno sentenced Garcia to a term of 112 months imprisonment, to be followed by one year of supervised release. Garcia was also ordered to pay approximately $13,000.00 in restitution.
During trial, the United States presented evidence documenting Garcia’s improper friendship with a former confidential source. The confidential source, a convicted felon, would provide Garcia and another former South Miami Detective, Richard Munoz, with counterfeit credit cards. During the trial, the source, Munoz, and others testified about Garcia’s possession and use of those cards during shopping trips to the Dolphin and Florida City shopping malls in late 2010 and early 2011. During a meeting recorded by an FBI source, Garcia was recorded providing his own personal credit card for use in stealing account numbers and manufacturing counterfeit cards.
After the source started cooperating in June 2011, Garcia was caught on videotape bringing eight counterfeit credit cards to the confidential sources’ residence. During that and other recorded meetings, Garcia explained that he had taken the counterfeit cards from work and that he would share them with the confidential source. During the next two weeks, Garcia was again caught on tape discussing his use of the cards at restaurants, movies, and the Dolphin Mall. Garcia’s presence during the transactions was further documented through use of phone records, placing Garcia’s cellular telephone in the area of each transaction at the time it occurred.
U.S. Attorney Wifredo A. Ferrer stated, “William Garcia violated his oath as a police officer and misused his position to victimize the civilians he was sworn to protect. Mr. Garcia’s participation in these crimes betrayed not only the public trust, but also his fellow officers’ daily sacrifices as they work tirelessly to protect this community. Today’s sentence sends a strong message that we expect and deserve more from our public servants. I congratulate the hard work of the FBI that led to this successful prosecution.”
"The FBI’s Miami Area Corruption Task Force was assembled to ensure public officials are brought to justice if they betray the community’s trust,” said George L. Piro, Special Agent in Charge, FBI Miami. “In this case, the Task Force along with the assistance of the Sweetwater Police Department worked diligently to ensure justice was served.”
Mr. Ferrer commended the outstanding investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorneys Anthony Lacosta and Sarah Schall.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Rmbs Trader Sentenced to PrisonRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that JESSE C. LITVAK, a registered broker-dealer and former managing director at New York investment bank Jefferies & Co., Inc. (Jefferies), was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 24 months of imprisonment, followed by three years of supervised release, for defrauding customers trading in residential mortgage-backed securities (RMBS). LITVAK was also ordered to pay a fine of $1.75 million.
For nearly three years, Jesse Litvak lied over 70 times to numerous Jefferies’ customers, cheating them and stealing their investors’ money,” stated U.S. Attorney Daly. “While Litvak was being paid millions as a trader and managing director, he defrauded dozens of victims resulting in over six million dollars in loss to investors. The victim investors included pension funds for teachers, firefighters, police officers, and other state or municipal employees, as well as taxpayer-provided bailout funds that helped our nation to recover from the 2008 financial meltdown. This sentence serves as a warning bell to those who risk engaging in such corrupt practices. We hope that this prosecution will act as a forceful disincentive to market participants tempted to commit securities fraud. We commend SIGTARP and the FBI for their outstanding work on this investigation.”
“Today’s sentencing sends a clear message that lying in the already opaque markets of mortgage backed securities to drive up prices for the sake of profits is a crime that will result in years in federal prison,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “When caught by a customer trading with taxpayer bailout dollars, senior bond trader Litvak said it was a ‘hard year’ and ‘guys were doing what they needed to make money.’ The fact is that it was a hard year for everyone in that market. The government used taxpayer dollars in a TARP bailout program to help restart a frozen mortgage backed securities market, but Litvak saw it as a criminal opportunity. Litvak bragged in online chats about lying to customers and driving up prices, conduct that ultimately resulted in $6.3 million in fraudulent profits for his firm, Jefferies. Litvak knew full-well that some of those customers were funds filled with taxpayer dollars, and he has zero remorse for ripping off those customers and jeopardizing the integrity of the bailout program, all for the sake of pure greed. I want to thank U.S. Attorney Deirdre Daly for standing united with SIGTARP in the fight against bailout-related crime.”
“In March, a jury found Mr. Litvak guilty of securities fraud and TARP fraud; today, he learned that he will spend time in federal prison for those crimes,” said FBI Special Agent in Charge Ferrick. “With the incredible but legitimate salary Mr. Litvak was earning, the only explanation for his pilfering ways is pure and unadulterated greed. Let this be a message to those in a position of trust who cheat their investors and the government: You will be investigated, prosecuted and convicted. Most importantly, you will go to jail. The FBI is very appreciative of the work SIGTARP and the U.S. Attorney’s Office has done to ensure justice and encouraged by the deterrent effect Mr. Litvak’s case will have moving forward.”
On March 7, 2014, a jury found LITVAK guilty of 10 counts of securities fraud, one count of TARP fraud, and four counts of making false statements to the federal government. According to the evidence introduced during the trial, in response to the 2008 financial collapse, the U.S. Department of Treasury introduced the Legacy Securities Public-Private Investment Program (PPIP), and used more than $22 billion of bailout money from the Troubled Asset Relief Program (TARP) to restart the trading markets for many troubled securities, including certain kinds of RMBS. The program created nine PPIP funds, and more than 100 firms applied to manage the funds. TARP infused between $1.4 billion and $3.7 billion of bailout money into each of the PPIP funds that was to be invested alongside private capital.
LITVAK, 39, of New York, N.Y., was a senior trader and managing director at Jefferies, a global securities and investment banking firm headquartered in New York. Jefferies also had a trading floor in Stamford, Conn., where LITVAK and other members of its Mortgage and Asset-Backed Securities trading group worked. Between February 2009 and October 2011, LITVAK engaged in a scheme to defraud Jefferies’ customers based on two types of misrepresentations. First, as a broker-dealer, only LITVAK – not the bond seller or buyer – knew the selling and asking prices of the parties. LITVAK exploited this information by misrepresenting the RMBS seller’s asking price to the buyer and by misrepresenting the buyer’s asking price to the seller. By fraudulently increasing the difference or “spread” between the price paid by the buyer and the price paid to the seller, LITVAK pocketed the difference for Jefferies. Second, LITVAK took bonds held in Jefferies’ inventory and sold them to RMBS buyers only after inventing a fictitious third-party seller. This ruse allowed LITVAK to charge the buyer an extra commission that Jefferies was not entitled to because it was selling bonds it held in its own inventory.
LITVAK perpetrated this scheme more than 70 occasions against numerous PPIP funds and private investment funds, netting Jeffries more than $6.3 million in fraudulent profits.
LITVAK has been released on bond since his arrest on January 28, 2013. He was ordered to report to prison by November 5, 2014.
The investigation of this matter revealed that members of Jefferies’ management in the fixed income division became aware that Jefferies employees were making misrepresentations to customers and did nothing to stop it. Jefferies has cooperated with the federal criminal investigation and, on January 29, 2014, agreed to pay a total penalty of $25 million as part of a non-prosecution agreement with the government. The penalty includes up to $11 million in restitution to victims and up to a $4,200,402 penalty to the U.S. Securities and Exchange Commission (SEC). Jefferies also agreed to address deficiencies in the compliance and ethics practices and policies of its Mortgage and Asset-Backed Securities Trading group. These measures include Jefferies’ agreement to retain an Independent Compliance Consultant to conduct a review of Jefferies’ policies and procedures for detecting and preventing fraud in connection with the purchase or sale of RMBS.
U.S. Attorney Daly noted that the criminal investigation of individuals and institutions involved in fraudulent RMBS trading activities remains active and ongoing.
This matter is being investigated by SIGTARP and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Jonathan Francis and Christopher Mattei.
This prosecution was brought in coordination with the RMBS Working Group, a joint federal and state initiative created to investigate those responsible for misconduct contributing to the 2008 financial crisis. RMBS were pools of mortgages deposited into trusts and then sold as securities to investors who were to receive a stream of income from the mortgages packaged in the RMBS. The RMBS Working Group, which is chaired by Attorney General Eric Holder, brings together more than 200 attorneys, investigators, analysts and staff from dozens of state and federal agencies including the Department of Justice, ten U.S. Attorneys’ Offices, the FBI, the Securities and Exchange Commission, the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General, the Federal Housing Finance Agency’s Office of Inspector General, the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), the Federal Reserve Board’s Office of Inspector General, the Recovery Accountability and Transparency Board, the Financial Crimes Enforcement Network, and more than ten state Attorneys General offices around the country.
For more information about the RMBS Working Group and the Financial Fraud Enforcement Task Force, please visit: www.stopfraud.gov.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Former Employee Sentenced for Stealing Garmin GPS DevicesRead the Press Release
KANSAS CITY, KAN. – A man who worked for the Garmin Company in Olathe, Kan., has been sentenced to 33 months in federal prison for stealing boxes of GPS devices from the company, U.S. Attorney Barry Grissom said. He also was ordered to pay more than $2 million in restitution.
Terrence M. Heathington, 32, formerly of Olathe and currently of Atlanta, Ga., was sentenced Tuesday. In his plea to one count of mail fraud, he admitted that the crime was committed from March to September 2008 when he worked in Garmin International, Inc.’s warehouse in Olathe as a material handler. He shipped a large quantity of Garmin GPS devices to his personal address and the address of high school friends living in Atlanta. He and his friends sold the devices on eBay and to other individuals.
The thefts were discovered when a person who bought one of the stolen devices contacted the company. An audit revealed that boxes of GPS devices had been shipped to Heathington’s home in Ottawa and to addresses in Georgia, where Heathington had lived.
Grissom commended the Overland Park Police Department, the U.S. Secret Service and Assistant U.S. Attorney Chris Oakley for their work on the case.
Five Ordered to Custody in Galveston on Charges of Methamphetamine DistributionRead the Press Release
GALVESTON, Texas – Five men, charged with conspiracy to possess with the Intent to distribute methamphetamine in the Galveston area, have been ordered detained pending further criminal proceedings, announced United States Attorney Kenneth Magidson.
Abel Hinojosa, 34, Nelson Agapito Ventura, 37, Daniel Reyna, 33, Israel Sanchez, 20, and Rodolfo Hernandez Perez, 26, all of La Marque, appeared before U.S. Magistrate Judge John R. Froeschner last Friday. The court took the matter under advisement and subsequently ordered they be detained pending trial.
All five are charged with one count of conspiracy to possess with the Intent to distribute more than 50 grams of methamphetamine as well as more than 500 grams of a mixture containing methamphetamine in the Galveston Division of the Southern District of Texas.
Perez and Hinojosa are further charged with one and three counts, respectfully, of possession with intent to distribute varying amounts of methamphetamine. The indictment also includes a notice of forfeiture.
At the hearing, the government presented evidence that Hinojosa and Ventura were the alleged leaders of this narcotics conspiracy. According to the allegations, they were obtaining crystal methamphetamine and other narcotics from Mexico, sending couriers to pick up the narcotics and then distributing the drugs within Galveston as well as to out-of-state customers.
Perez and Sanchez allegedly served as couriers for the drug conspiracy, helping to pick up the drugs from Mexico and transporting it to customers.
The government presented evidence that Reyna served as a street-level distributor. Upon his arrest, he was allegedly found with crystal methamphetamine, eight firearms (including two assault rifles) and approximately 1000 rounds of ammunition.
After hearing the evidence and testimony, Judge Froeschner found them to be a danger to the community and ordered they be detained pending further criminal proceedings. The court further noted the strength of the government’s case and its substantial evidence. Trial is set for Sept. 22, 2014.
Each face a minimum of 10 years and up to life in federal prison for the conspiracy, if convicted. The possession with intent charges against Hinojosa and Perez also carry varying terms of either a minimum of five and up to 40 or another minimum of 10 and up to life for the underlying drug offenses.
The case is being investigation by the Drug Enforcement Administration, Homeland Security Investigations and Galveston Police Department. Assistant United States Attorneys Ted Imperato and Sharad Khandelwal are prosecuting.
An indictment is a formal accusation of criminal conduct, not evidence.
The defendants are presumed innocent unless and until convicted through due process of law.Federal Official Arrested, Charged with Self-Dealing Federal Grants to New Jersey UniversitiesRead the Press Release
NEWARK, N.J. - The Assistant Division Administrator of the Federal Highway Administration (FHWA), New Jersey Division, was arrested this morning for allegedly using a straw company to get FHWA grant funds he also oversaw as a public official, and for falsifying related federal disclosure documents, U.S. Attorney Paul J. Fishman announced.
Lawrence F. Cullari Jr., 42, of Tinton Falls, New Jersey, was arrested at his FHWA office in West Trenton by special agents from the U.S. Department of Transportation (DOT) Office of Inspector General (OIG), and criminal investigators with the U.S. Attorney’s Office for the District of New Jersey. He is charged in a criminal complaint with five counts of making false statements and one count of wire fraud.
Cullari had an initial appearance and bail hearing this afternoon before U.S. Magistrate Judge James B. Clark III and was released on a $100,000 bond.
According to the criminal complaint filed today in Newark federal court:
Cullari has been the Assistant Division Administrator at the Federal Highway Administration’s FHWA New Jersey Division since 2010. In that position, he holds the power to influence the allocation of DOT funding. Since 2006, he has also operated a private consulting and engineering company called Dencore Consulting, which was owned by his then-wife.
In about 2006, the defendant approached his then father-in-law – referred to as W.P. in the complaint – and asked to use W.P.’s company – identified as Company #1 – as a nominal or “straw” contractor to get work for Dencore Consulting from Rutgers University’s Center for Advanced Infrastructure and Transportation (Rutgers CAIT), and New Jersey Institute of Technology (NJIT).
From May 2006, until at least June 2013, Cullari prepared bids and work proposals for W.P. to sign and submit to Rutgers CAIT and NJIT on behalf of Company #1, predominantly for FHWA-funded projects. When Rutgers CAIT or NJIT awarded projects to the company, Cullari arranged for the relevant engineering reports to be completed. He had W.P. sign and mail the reports to the universities on behalf of Company #1, as if the company had performed the work. W.P. then mailed invoices on behalf of the company to the schools for payment. When the universities paid, W.P. kept a small portion of the payment, usually about $300, for himself and wrote a check to Dencore Consulting for the balance.
In addition to the self-dealing scheme, Cullari filed false Confidential Financial Disclosure Reports from 2009 through 2013. He indicated on the forms that he held no outside positions and earned no outside income, though Dencore Consulting was paid more than $130,000 relating to a number of contracts with Company #1 during those years, and more than $56,000 of that income was transferred directly from Dencore Consulting’s bank account into his personal bank account. Cullari was also a member of several “advisory boards” at Rutgers CAIT, including the CAIT Advisory Board, the Research Advisory Board, the Technology Transfer Advisory Board, and the Transportation Safety Resource Center Advisory Board, among others.
The maximum potential penalty for the wire fraud charge is 20 years in prison, and the maximum potential penalty for each false statements charge is five years in prison. All of the charges also each carry a maximum potential penalty of $250,000, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the U.S. Department of Transportation, Office of Inspector General, under the direction of Regional Special Agent in Charge Douglas Shoemaker, the New Jersey Department of Transportation, Office of Inspector General, under the direction of Johanna Barba Jones, and investigators in the U.S. Attorney’s Office with the ongoing investigation.The government is represented by Assistant U.S. Attorney Scott B. McBride, Deputy Chief of the U.S. Attorney’s Office Economic Crimes Unit.
The charges and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
14-262
Defense counsel: Assistant Federal Public Defender Carol Gillen (for purposes of initial appearance)
Cullari, Lawrence Complaint
Federal Jury Convicts Three Men in Drug Trafficking Case in LawrenceRead the Press Release
KANSAS CITY, KAN. – A federal jury today convicted three men for their roles in a drug trafficking conspiracy that distributed millions of dollars’ worth of marijuana in the Lawrence area, the U.S. Attorney’s Office announced today. The government is seeking a money judgment of more than $16.9 million against the traffickers.
The men were found guilty on charges of conspiracy to distribute marijuana and other drug trafficking counts. The defendants are:
Los Rovell Dahda, 32, Lawrence, Kan.
Roosevelt Rico Dahda, 32, Lawrence, Kan.
Justin Cherif Pickel, 34, San Lorenzo, Calif.During trial, prosecutors presented evidence that starting in 2008 law enforcement agencies began receiving information that Los Dahda was distributing marijuana in the Lawrence area. When Roosevelt Dahda was released from prison in November 2010, he joined his brother Los in the trafficking organization.
Prosecutors presented evidence that during the early days of the conspiracy the Dahdas bought marijuana from Mexico to sell in Lawrence. Over time, they turned to California for their supply. They purchased marijuana in California for $1,800 to $2,800 a pound and they sold it in the Lawrence area for $3,500 to $4,800 a pound. It is estimated that the traffickers distributed more than 8,000 pounds of marijuana from 2005 to 2012.
The Dahdas used a business they owned in Lawrence, Gran-Daddy’s BBQ at 1447 West 23rd Street, as well as other properties to receive, store and process marijuana for distribution.
Pickel worked for the Dahdas transporting marijuana from California to Lawrence. On April 25, 2012, he was stopped on Interstate I-80 in Nebraska. Investigators found 38 pounds of marijuana concealed in a false compartment in a toolbox/fuel tank. Pickel also set up an indoor marijuana grow operation in California that he maintained for the Dahdas. On June 13, 2012, investigators executed a search warrant at Pickel’s residence in California and seized more than 100 marijuana plants.
The defendants were convicted on the following counts:
Los Rovell Dahda: Conspiracy (count 1), maintaining Daddy’s BBQ at 1147 W. 23rd in Lawrence in furtherance of drug trafficking (count 31), distributing marijuana (counts 26 and 36), using a telephone in furtherance of drug trafficking (counts 38, 39, 41, 42, 45, 46), possession with intent to distribute marijuana (counts 43, 49, 73, 85, 88 and 73.
Roosevelt Rico Dahda: Conspiracy (count 1), using a telephone in furtherance of drug trafficking (counts 42, 45, 53, 55, 70) possession with intent to distribute marijuana (counts 43, 49, 73) possession with intent to distribute within 1,000 feet of Holcomb Sports Complex in Lawrence (count 56).
Justin Cherif Pickel: Conspiracy (count 1),using a telephone in furtherance of drug trafficking (count 70).
Sentencing will be set for a later date. The crimes carry the following penalties:
Conspiracy: Not less than 10 years and a fine up to $10 million. On this count, Roosevelt is facing a minimum of 20 years because of his prior convictions.
Agencies involved in the investigation and the arrest of defendants include the Douglas County Sheriff=s Office, the Johnson County Sheriff=s Office, the Lawrence Police Department, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Internal Revenue Service, the U.S. Postal Service, the Alameda County, Calif., Sheriff=s Drug Task Force, the Kansas Bureau of Investigation, the Lenexa Police Department, the Overland Park Police Department, the Kansas City, Mo., Police Department, the Kansas City, Kan., Police Department and the Hayward, Calif., Police Department. Assistant U.S. Attorney Terra Morehead is prosecuting.
Maintaining a house or building in furtherance of drug trafficking: A maximum penalty of 20 years and a fine up to $250,000.
Distributing marijuana within 1,000 feet of a school or playground: A maximum penalty of 10 years and a fine up to $500,000.
Distributing marijuana; possession with intent to distribute marijuana: A maximum penalty of five years and a fine up to $250,000.
Using a telephone in furtherance of drug trafficking: A maximum penalty of four years and a fine up to $250,000.
Taking part in an ongoing criminal enterprise: Not less than 20 years and a fine up to $2 million.Federal Jury Convicts San Antonio Man for Sex Trafficking of MinorsRead the Press Release
In San Antonio today, a federal jury convicted 22–year-old Malcolm Deandre Copeland for his role in prostituting two minor females last year announced United States Attorney Robert Pitman, Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division and Texas Attorney General Greg Abbott.
The jury convicted Copeland of two counts of sex trafficking of minors. Evidence presented during the trial revealed that Copeland and others were involved in a scheme to entice and encourage minors into engaging in sexual acts for money. Specifically, jurors found that Copeland, in August and September of 2013, knowingly placed photos of two minors on an Internet website which advertised prostitution services under the pretext of “escorts.” Jurors also found that Copeland transported the minors to multiple locations in San Antonio as well as Corpus Christi to engage in commercial sex.
Copeland, who remains in federal custody, faces between ten years and life in federal prison when he is sentenced on December 4, 2014.
One of Copeland’s co-defendants, 20-year-old Amber Doak of San Antonio, pleaded guilty in March 2014 to one count of sex trafficking of minors and is currently awaiting sentencing scheduled for September 12, 2014. She faces between ten years and life in federal prison.
Two remaining co-defendants—38-year-old San Antonio resident Marcus Deshawn Wright and 41–year-old New Hampshire resident Raymond Valas—await jury selection and trial scheduled for August 18, 2014, and November 17, 2014, respectively, before U.S. Chief District Judge Fred Biery. Wright is charged with two counts of sex trafficking of minors and one count of production of child pornography. Valas is charged with one count of sex trafficking of a minor.
This case was investigated by the Federal Bureau of Investigation (FBI) together with the San Antonio Police Department. Assistant United States Attorney Bettina Richardson and Special Assistant United States Attorney Geoff Barr from the Texas Attorney General’s Office are prosecuting this case on behalf of the Government.Federal Jury Convicts Sacramento Man of Possessing Crack Cocaine for DistributionRead the Press Release
SACRAMENTO, Calif. — After a three–day trial, a federal jury found John Winton Harris, 31, of Sacramento, guilty today of one count of possession of at least 29 grams of cocaine base, commonly referred to as crack cocaine or rock cocaine, United States Attorney Benjamin B. Wagner announced. The trial was held before United States District Judge Morrison C. England Jr.
According to evidence presented at trial, Sacramento police officers responded to a domestic violence complaint at an apartment complex in Sacramento. When the officers entered the apartment, they found Harris crouched in the kitchen area. He was moved to a different location in the apartment, and when officers found a large amount of cocaine base where he had been crouching in the kitchen, Harris attempted to flee. Harris claimed he did not live in the apartment, but officers found mail addressed to him at that address, as well as other personal items belonging to him in the apartment. Harris’s cellphone revealed photographs of Harris in the same apartment with a large amount of currency only days before, as well as text messages indicating he was involved in the distribution of cocaine base that very week.
This case is the product of an investigation by the United States Drug Enforcement Administration and the Sacramento Police Department. Assistant United States Attorneys Todd Pickles and Chris Highsmith are prosecuting the case.
Harris remains in custody pending sentencing.
Harris is scheduled to be sentenced by Judge England on October 23, 2014. Harris faces a maximum statutory penalty of 40 years in prison and a $5 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Federal Authorities Arrest Court Interpreter, Trina Marie Bourg, for Wire FraudRead the Press Release
U.S. Attorney Kenneth Allen Polite, Jr. announced today that TRINA MARIE BOURG, age 45, of Houma, Louisiana, was arrested yesterday on a federal complaint for crimes involving the solicitation of illegal bribes from immigrants and their family members.
According to court records, on May 7, 2014, the U.S. Department of Homeland Security-Homeland Security Investigations (“HSI”) received information that BOURG, a Spanish language interpreter who provided interpreter services for Terrebonne and Lafourche Parish courts, was soliciting payments from individuals who were illegally present in the United States. BOURG represented to these individuals that she would use the money she received to bribe United States Immigration Officials in order to remove the immigration detainers and/or federal immigration charges from their criminal and/or administrative cases. According to the criminal complaint filed yesterday in federal court, in 2011 and again in 2014, BOURG solicited two bribes totaling $4,000 from an individual identified in the complaint as Victim A and his family members. BOURG received a total of $3,500 from Individual A’s family member, who paid BOURG because BOURG represented to the family member that she would use the money to influence federal immigration officials.
If convicted, BOURG faces a term of incarceration of up to of twenty years.
This case was investigated by special agents from the U. S. Department of Homeland Security-HSI and the Louisiana State Police-Criminal Investigation Division. The prosecution of this case is being handled by Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba.
Council Man Sentenced for Violating Sex Offender Registration and Notification ActRead the Press Release
BOISE B Larry Grant Dana, 41, of Council, Idaho, was sentenced today to 24 months in federal prison for violating the Sex Offender Registration and Notification Act, U.S. Attorney Wendy J. Olson announced. Dana pled guilty to the charge on May 19, 2014. U.S. District Judge Edward J. Lodge also ordered Dana to serve five years of supervised release following the prison term.
According to the plea agreement, Dana was convicted in Canyon County in 1996 of battery with intent to commit rape, which requires him to register as a sex offender. He had registered off and on since May 2001, most recently on October 5, 2013, when he reported that he was residing in Council, Idaho. According to his Idaho State parole officer, Dana absconded from supervision in November 2013. Dana was apprehended in Albuquerque, New Mexico on February 16, 2014. The investigation showed Dana had been with his wife and five children and had been seen in Wyoming, Colorado, Texas, Louisiana, Florida and Oklahoma prior to his arrest. He failed to register as a sex offender in any of those states, and did not notify the Idaho Sex Offender Registry that he had changed his address or left the state, as required by state and federal law.
The case was investigated by U.S. Marshals Service. 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.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Chinese National Pleads Guilty to Arms Export Control Act ViolationsRead the Press Release
ALBUQUERQUE – Bo Cai, 28, a Chinese national, pleaded guilty in the U.S. District Court for the District of New Mexico this afternoon to violating the Arms Export Control Act and the International Traffic in Arms Regulations (ITAR) by scheming illegally to export defense articles with military application to the People’s Republic of China. The guilty plea was announced by Damon P. Martinez, U.S. Attorney for the District of New Mexico and Dennis A. Ulrich, II, Special Agent in Charge of Homeland Security Investigations (HSI) in El Paso, Texas.
Bo Cai entered a guilty plea to a three-count superseding indictment charging him and his cousin, Wentong Cai, 29, a Chinese national in the United States on a student Visa, with a scheme illegally to export sensors primarily manufactured for sale to the U.S. Department of Defense for use in high-level applications, such as line-of-sight stabilization and precision motion control systems. The Arms Export Control Act and the ITAR prohibit the export of defense-related materials from the United States without obtaining a license or written approval from the U.S. Department of State.
In announcing the guilty plea, U.S. Attorney Damon P. Martinez said, “It is a top priority for the Justice Department and the District of New Mexico to protect our national security and our technology from disclosure to foreign governments. This prosecution demonstrates the federal law enforcement community’s commitment to safeguarding our nation’s military secrets by keeping America’s critical technology from falling into the wrong hands.”
HSI Special Agent in Charge Dennis A. Ulrich, II, said, “One of HSI's highest priorities is to prevent illicit procurement networks from illegally obtaining U.S. military products, sensitive dual-use technology, weapons of mass destruction (WMD), or chemical, biological, radiological and nuclear materials. This investigation reflects the outstanding efforts of HSI and its partner agencies in protecting American ingenuity and sensitive military hardware. HSI will continue to aggressively investigate this type of crime and bring those individuals who pose a threat to the world's security to justice.”
In his plea agreement, Bo Cai admitted that from March 2012 to Dec. 2013, he conspired illegally to export sensors from the United States to China without first obtaining the required export license. According to the plea agreement, in March 2012, Bo Cai, who was then employed by a technology company in China, embarked on an illegal scheme to smuggle sensors out of the United States to China for one of his customers despite knowledge that the sensors could not be exported without a license and that the United States did not issue licenses to export the sensors to China. Bo Cai enlisted Wentong Cai to acquire the sensors under the ruse that he planned to use the sensors at Iowa State University where he was a graduate microbiology student.
Court filings indicate that the investigation of this case began in Oct. 2013, when an undercover HSI agent responded to Wentong Cai’s overtures. After negotiations by telephone and email, Bo Cai and Wentong Cai traveled to New Mexico in Dec. 2013, where they obtained a sensor from undercover HSI agents and developed a plan for smuggling the sensor out of the United States to China. On Dec. 11, 2013, Bo Cai was arrested at an airport in Los Angeles, Calif., as he was preparing to board a flight to China after the sensor was discovered concealed in a computer speaker in his luggage.
At sentencing, Bo Cai faces a statutory maximum penalty of 20 years in prison on the Arms Export Control Act charge, ten years in prison on the smuggling charge, and five years on the conspiracy charge. Under the terms of his plea agreement, Bo Cai will be deported after completing his prison sentence. He remains in custody pending his sentencing hearing, which has yet to be scheduled.
Wentong Cai was arrested in Iowa and was transferred to the District of New Mexico in Jan. 2014. He has entered a not guilty plea to the charges in the superseding indictment and remains in federal custody pending trial, which currently is scheduled to begin on Aug. 18, 2014. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
The Albuquerque office of HSI led the investigation of this case with assistance from the U.S. Air Force Office of Special Investigations, the Defense Security Service, HSI in Iowa and Los Angeles, Calif., and the FBI. Iowa State University cooperated throughout with HSI’s investigation. Assistant U.S. Attorneys Dean S. Tuckman and Fred J. Federici of the District of New Mexico are prosecuting the case with assistance from Deputy Chief Deborah Curtis and Trial Attorney David Recker of the Justice Department’s National Security Division, Counterespionage Section, the U.S. Attorney’s Office for the Central District of California and the U.S. Attorney’s Office for the Southern District of Iowa.
Child Sex Trafficker Sentenced to 12 Years in PrisonRead the Press Release
EUGENE, Ore. – On Wednesday, July 23, 2014, Chief U.S. District Court Judge Ann Aiken sentenced Steven Anthony Kidd, 21, of Linn County, Oregon, to a prison term of 12 years for two counts of child sex trafficking. Following his release from prison, Kidd will be on supervised release for five years.
In December 2012, a Eugene Police Department (EPD) officer learned that Kidd might be trafficking minors for sex, and further investigation confirmed this. EPD and the FBI learned that Kidd had trafficked a minor female, referred to as “AA,” starting in late 2011 and lasting for nearly a year. Kidd transported AA to Medford, Albany, Eugene, Corvallis, Harrisburg and Portland, Oregon, as well as cities in Washington. He obtained hotel rooms, posted ads soliciting sex and collected proceeds from the sex trafficking. Kidd imposed a set of rules for AA to follow and subjected her to physical abuse.
On two occasions in December of 2012, Kidd also trafficked another minor female, referred to as “BB.” Kidd posted an advertisement soliciting customers to engage in sex with BB, and drove her to Corvallis for the sex acts. Kidd kept the proceeds from these acts of sex trafficking.
The residence Kidd was staying at in Albany, Oregon was searched, and Kidd was arrested the same day. Two pistols were located, along with significant information demonstrating Kidd’s involvement in child sex trafficking, including a notebook in his closet. The notebook had handwritten notes, including some titled “Hoe Bi**h Rules”, which included “Bi**h Always look at the ground.” Other handwritten notes included, “First and Foremost, Break the Bi**h’s old Phone,” (sic), “Don’t let the B**h think for herself,” and, “Make them fear DADDY.” Other evidence located at the residence further confirmed Kidd’s trafficking of the minor victims.
“This case is a prime example of how pimps use violence, power, and control to manipulate vulnerable victims into a life of terror”, said U.S. Attorney Amanda Marshall. “ My office will continue working with our federal and local law enforcement partners to make it clear to traffickers that our children are not for sale. “
This case was investigated by the Federal Bureau of Investigation and the Eugene Police Department, with assistance from the Albany Police Department, and was prosecuted by Assistant U.S. Attorney Jeffrey S. Sweet.
Chattanooga Man Sentenced to Serve 150 Months for Crack Cocaine Conspiracy Spanning from Chattanooga to Johnson CityRead the Press Release
GREENEVILLE, Tenn. – On July 21, 2014, Garry Lee Brown, 25, of Chattanooga, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 150 months in federal prison, for his conviction of conspiracy to distribute crack cocaine.
Beginning in 2011, law enforcement began investigating a large-scale crack cocaine conspiracy originating out of Chattanooga. As part of the conspiracy, they discovered that numerous individuals, including Brown, were trafficking multi-ounce quantities of crack cocaine to Johnson City for resale. Private vehicles, taxi cabs, and public transportation were commonly used to transport the drugs. Many of the co-conspirators, including Brown, had ties to street gangs based in Chattanooga, including the Rollin’ 60’s Crips and Woodlawn Crips. Upon arrival in Johnson City, Brown and others would distribute their drugs, return to Chattanooga with their drug sale proceeds, purchase additional drugs, and repeat the cycle.
As part of the investigation, law enforcement agents conducted a series of controlled drug transactions with Brown and other co-conspirators. On three separate occasions, Brown sold crack cocaine to confidential informants acting under the supervision of agents and officers. In total, the conspiracy involved kilogram quantities of crack cocaine. Three of Brown’s co-conspirators remain to be sentenced in Greeneville. Numerous others are being prosecuted in Chattanooga.
This long term investigation was the product of a partnership between the Johnson City, Tennessee Police Department; Chattanooga, Tennessee Police Department; Federal Bureau of Investigation; and Drug Enforcement Administration. Special Assistant U.S. Attorney Nick Regalia represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
This case was also a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Capital District Man and Woman Arraigned on Social Security Disability and Workers’ Compensation Fraud ChargesRead the Press Release
ALBANY, NEW YORK – JOHN W. CALTABIANO, Jr., 47, of Cairo, New York, and COLLEEN J. McCARTEN, 41, of Coxsackie, New York, appeared today before Magistrate Judge Randolph F. Treece in U.S. District Court in Albany to be arraigned on an 11-count July 17, 2014, indictment charging them with engaging in a fraudulent scheme to obtain Social Security Disability and New York State Workers’ Compensation benefits, announced United States Attorney Richard S. Hartunian and Special Agent Edward J. Ryan of the Social Security Administration, Office of the Inspector General, Office of Investigations, New York Field Division.
According to the indictment, CALTABIANO and McCARTEN conspired to fraudulently obtain payments by submitting false information in connection with CALTABIANO’s Social Security Disability and Workers’ Compensation claims. The indictment alleges that McCARTEN and CALTABIANO submitted documents to the Social Security Administration falsely stating that CALTABIANO could not go out alone or drive, and that McCARTEN led CALTABIANO into a Workers’ Compensation Board hearing as if he was blind, when in fact CALTABIANO regularly moved without assistance and drove a car.
If convicted, CALTABIANO and McCARTEN face up to 20 years in prison on a conspiracy to commit mail fraud count and each of five mail fraud counts, up to five years in prison on each of two Social Security Disability fraud counts and two false statements counts, and up to 10 years in prison on a theft of government property count. They could also be ordered to pay fines of up to $250,000 on each count.
The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty.
The indictment resulted from an investigation conducted by the Social Security Administration, Office of the Inspector General, with assistance from the Workers’ Compensation Board, Office of Fraud Inspector General. The case is being prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
Butler County Couple Indicted on Charges of Stealing $1.5 Million from Presbyterian ManorsRead the Press Release
WICHITA, KAN. – A Butler county couple was indicted Wednesday on federal charges of stealing more than $1.5 million from Presbyterian Manors of Mid-America, a Wichita-based company that owns assisted living centers in Kansas and Missouri, U.S. Attorney Barry Grissom said.
In Kansas, the company has facilities in Wichita, Topeka, Kansas City, Olathe, Lawrence, Emporia, Salina, Dodge City, Fort Scott, Parsons, Arkansas City, Newton, Sterling and Clay Center.
Brent A. Shryock, 43, Augusta, Kan., and his wife, Lori A. Shryock, 50, Augusta, Kan., are charged with four counts of mail fraud. The indictment alleges the crimes occurred while Brent Shryock was employed as information systems director for the company. He was in charge of all computers, telephones, video information and electronic equipment, including the purchase of new or replacement equipment for PMMA, Presbyterian Manor, Aberdeen and Ashfield facilities.
The defendants are alleged to have created four fictitious companies: LGR Technology, Innovative Software Solutions, DT Solutions and Microtech Solutions. The indictment alleges the initials in LGR Technology stood for “Let’s Get Rich.” The defendants used the fictitious companies to submit fraudulent invoices to PMMA, Presbyterian Manor, Aberdeen and Ashfield.
If convicted, the defendants face a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count. The FBI investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
OTHER INDICTMENTS
Thomas F. Fee, 53, Hutchinson, Kan., is charged with one count of unlawful possession of a machine gun and one count of unlawful possession of a silencer. The crimes are alleged to have occurred July 4, 2014, in Reno County, Kan. Fee was arrested after a standoff with Hutchinson police.
If convicted he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on the machine gun count and a maximum penalty of 10 years and a fine up to $10,000 on the other count. The Hutchinson Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney David Lind is prosecuting.
James Paul Bettes, Jr., 47, Wichita, Kan., is charged with one count of distributing child pornography and one count of possessing child pornography. The crime is alleged to have occurred May 16, 2014, in Wichita, Kan.
If convicted, he faces a penalty of not less than five years and not more than 20 years in federal prison and a fine up to $250,000 on the distribution count, and a maximum penalty of 10 years and a fine up to $250,000 on the possession count. Homeland Security Investigations and the Wichita Police Department investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Marla R. McDonald, 25, Garden City, Kan., is charged with one count of Social Security benefit fraud, three counts of aggravated identity theft, one count of mail fraud and 11 counts of wire fraud. The crimes are alleged to have occurred in 2011 and 2012 in Finney County, Kan.
Upon conviction, the crimes carry the following penalties: Social Security benefits fraud: A maximum penalty of five years in federal prison and a fine up to $250,000.
Aggravated identity theft: A mandatory two years to run consecutive to the underlying sentence.
Mail fraud: A maximum penalty of 20 years and a fine up to $250,000.
Wire fraud: A maximum penalty of 20 years and a fine up to $250,000 on each count.
The Social Security Administration – Office of Inspector General investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Jonearl Smith, 35, is charged with one count of possessing and discharging a firearm in furtherance of a crime of violence and two counts of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred July 12, 2014, in Wichita, Kan.If convicted, he faces a penalty of not less than 10 years and not more than life, consecutive to any other count, and a fine up to $250,000 on the first count; and a maximum penalty of 10 years and a fine up to $250,000 on each of the other counts. The Wichita Police Department investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
Diedra N. Sanders, 43, Wichita, Kan., who was a civilian employee at McConnell Air Force Base in Wichita, is charged with one count of theft of public money and three counts of submitting false reports to the federal government to cover up the theft. The crimes are alleged to have occurred in 2013 at McConnell Air Force Base.
The indictment alleges Sanders committed the crime while she was employed as a deputy dispersing officer. The indictment alleges the largest amount stolen at one time was $4,000.
If convicted, she faces a maximum penalty of five years in federal prison and a fine up to $250,000 on each count. The U.S. Air Force investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Coley R. Logan, 19, Fort Scott, Kan., is charged with one count of theft of mail from the U.S. Postal Service. The indictment alleges Logan was employed as a highway contract route driver and the crimes occurred in March and May 2014.If convicted, she faces a maximum penalty of five years and a fine up to $250,000. The U.S. Postal Service – Office of Inspector General investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Alexander J. Pauler, 26, Wichita, Kan., is charged with unlawful possession of a firearm following a misdemeanor conviction for a crime of domestic violence. The crime is alleged to have occurred March 30, 2014, in Wichita, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The Wichita Police Department investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Darrell E. Finney, 24, Wichita, Kan., is charged with unlawful possession of a firearm by a user of controlled substances. The crime is alleged to have occurred April 19, 2014, in Wichita, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000 The Wichita Police Department investigated. Special Assistant U.S. Attorney Michelle Jacobs is investigating.
Kim Householder, 53, Tribune, Kan., is charged with unlawfully possessing a silencer attached to a Ruger SR-22 rifle. The crime is alleged to have occurred April 4, 2014, in Tribune, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Michelle Jacobs is investigating.
Kenneth E. Weaver, 58, Denver, Colo., is charged with one count of possession with intent to distribute marijuana. The crime is alleged to have occurred July 11, 2014, in Allen County, Kan.
The government is seeking a money judgment against Weaver of $1.4 million, which represents the proceeds of the crime.
If convicted, he faces a maximum penalty of 20 years and a fine up to $1 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
James Michael Post, 53, is charged with failing to register as required by Sex Offender Registration Notification Act. The crime is alleged to have occurred Oct. 28, 2012, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Juan Trejo-Martinez, 54, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found July 5, 2014, in Finney County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. ICE’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Juan Lopez-Morales, 40, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found July 6, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. ICE’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Pedro Garcia-Cordero, 40, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found July 7, 2014, in Sedgwick County, Kan.If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. ICE’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Israel Santamaria-Rodriguez, 32, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found July 10, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. ICE’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Kent Misak, 58, Wichita, Kan., is charged with possession with intent to distribute methamphetamine. The crime is alleged to have occurred July 15, 2014, in Sedgwick County, Kan.
If convicted, he faces a penalty of not less than five years and not more than 40 years and a fine up to $5 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
Ivan Bustamente-Zazueta, 30, Park City, Kan., is charged with one count of possession with intent to distribute methamphetamine and one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred July 15, 2014, in Sedgwick County, Kan.
If convicted, he faces a penalty of not less than 10 years and a fine up to $4 million on the methamphetamine charge, and a penalty of not less than five years and a fine up to $250,000 on the firearm charge. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
Adan Zazueta-Zambada, 35, is charged with one count of possession with intent to distribute methamphetamine, and one count of unlawfully re-entering the United States after being convicted of an aggravated felony and deported. The crimes are alleged to have occurred July 15, 2014, Sedgwick County, Kan.
If convicted, he faces a penalty of not less than 10 years and a fine up to $4 million on the drug charge and a maximum penalty of 10 years and a fine up to $250,000 on the immigration charge. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
Jose Oscar Arciniega-Soto, 37, Wichita, Kan., is charged with one count of possession with intent to distribute methamphetamine, one count of unlawful possession of firearms in furtherance of drug trafficking and one count of unlawful possession of firearms following a felony conviction. The crimes are alleged to have occurred July 15, 2014, in Wichita, Kan.
If convicted, he faces a penalty of not less than five years and not more than 40 years and a fine up to $5 million on the methamphetamine count; not less than five years and a fine up to $250,000 on the charge of possessing a firearm in furtherance of drug trafficking; and a maximum penalty of 10 years and a fine up to $250,000 on the other firearm count. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
Jose Maria Santa Cruz, 29, Tucson, Ariz.; Jonatan Jimenez, 20, a citizen of Mexico; Olivia Luisa Aguilar, 31, Tucson, Ariz;and Shalita Dontae Black, 26, Tucson, Ariz., are charged one count of possession with intent to distribute methamphetamine and one count of traveling from Arizona through Kansas in furtherance of drug trafficking. The crimes are alleged to have occurred July 17, 2014, in Sedgwick County, Kan.
If convicted, they face a penalty of not less than 10 years and a fine up to $10 million on the methamphetamine count, and a maximum penalty of five years and a fine up to $250,000 on the other count. The Sedgwick County Sheriff’s Office and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.BGF Leader Sentenced to over 10 Years in Prison in Baltimore Jail Racketeering ConspiracyRead the Press Release
Directed Correctional Officers to Smuggle Contraband into Baltimore Correctional Facility, and Had Sex with Two Correctional Officers
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Jamar Anderson, age 24, of Baltimore, today to 121 months in prison followed by three years of supervised release for participating in a racketeering conspiracy that included the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC). Judge Hollander ordered that 60 months of his federal sentence will be served consecutive to the state murder sentence that he is currently serving.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Secretary Gregg Hershberger of the Maryland Department of Public Safety and Correctional Services; Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Gregg L. Bernstein.This case was developed as a result of the efforts of the Maryland Prison Task Force, formed in 2011 with the Maryland Department of Public Safety and Correctional Services, local, state and federal law enforcement agencies, and prosecutors. The Task Force has met regularly for over three years, generating recommendations to reform prison procedures and producing leads that have been pursued by state, local and federal criminal investigators. The investigation is continuing.
According to court documents, the Black Guerilla Family (BGF) has been the dominant gang at the BCDC, and in several connected facilities, including the Baltimore Central Booking Intake Center (BCBIC), the Women’s Detention Center, which houses many men, and in the Jail Industries Building.
According to his plea agreement, Anderson is a member of the BGF and was in pretrial custody at BCDC from 2012 to 2013. During that time, Anderson often directed correctional officers to smuggle contraband into BCDC, including cell phones, tobacco and drugs. In return, the correctional officers received payments, gifts or a share of the profits. Anderson knew many correctional officers involved in contraband trafficking, and had sexual relationships with two of them. Anderson and his closest BGF allies frequently used others to obtain contraband from outside the prison, and hold it or deliver it to correctional officers for smuggling.
Twenty-four of the 44 defendants charged in the conspiracy have pleaded guilty, including 14 correctional officers. One defendant has died. Trial is scheduled to begin November 17, 2014 for the remaining defendants.
U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Chief Mark A. Magaw of the Prince George’s County Police Department; United States Marshal Johnny Hughes; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Tom Carr, Director of the Washington-Baltimore High Intensity Drug Trafficking Area; and Dave Engel, Executive Director of the Maryland Coordination and Analysis Center.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who are prosecuting this Organized Crime Drug Enforcement Task Force case.Armored Truck Robber Pleads GuiltyRead the Press Release
Conspirators Stole Over $270,000 in 2012 Armored Truck Robbery
Greenbelt, Maryland – Adrian Baldwin, age 28, of Washington, DC, pleaded guilty today to conspiracy to commit an armed commercial robbery in connection with the robbery of an armored truck.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to Baldwin’s plea agreement, between mid-November and November 21, 2012, Baldwin conspired with Damione Lewis, Delacey Brown, Taurian Miller, and others to rob an armored truck that serviced a bank branch in the 3400 block of Kenilworth Avenue in Hyattsville, Maryland. As part of the conspiracy, Baldwin was recruited to participate in the robbery, in exchange for sharing in the proceeds of the robbery.On November 21, 2012, an armored car employee picked up $272,956.17 from the bank. Baldwin and other co-conspirators were in vans outside the bank. As the employee was taking the money from the bank to the armored truck, Baldwin and his co-conspirators approached the employee brandishing firearms, took the money bags to the vans and drove away. The robbery proceeds were later divided between the conspirators. Baldwin admitted that part of his share of the proceeds was used to purchase a 2002 Ford Explorer, which he must forfeit as part of his plea agreement.
Baldwin faces a maximum sentence of 20 years in prison. Chief U.S. District Judge Deborah K. Chasanow has scheduled sentencing for November 10, 2014 at 10:00 a.m.
Damione Lewis, age 35, of New Carrolton, Maryland; Delacey Kinte Brown, age 37, of Landover, Maryland; and Taurian Devon Miller, age 29, of Washington, DC; have all pleaded guilty to their roles in the robbery and are awaiting sentencing.
United States Attorney Rod J. Rosenstein praised the FBI and Prince George’s County Police Department for their work in the investigation and thanked Assistant U.S. Attorneys William D. Moomau and Bryan E. Foreman, who are prosecuting the case.Armed Forces Communications and Electronics Association (AFCEA) Marianas Tech Net 2014 Invites U.S.Attorney's Office to ParticipateRead the Press Release
ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), and JOSEPH QUITANO, National Security Specialist for the U.S. Attorney's Office (USAO), were invited to speak at the Armed Forces Communications and Electronics Association (AFCEA) Marianas TECH NET 2014 Conference, held on April22-25, 2014, in Guam. The AFCEA is an international organization "dedicated to increasing knowledge through the exploration of issues relevant to its members in information technology, communications, and electronics for the defense, homeland security and intelligence communities."
U.S. Attorney Limtiaco spoke about the mission of the USAO, which is "to enforce the law and defend the interests of the United States according to the law; to ensure public safety against threats foreign and domestic; to provide federal leadership in preventing and controlling crime; to seek just punishment for those guilty of unlawful behavior; and to ensure fair and impartial administration of justice for all Americans." She explained that there are 42 separate components of the Department of Justice and provided information on the roles of the agencies, including the United States Attorneys, who prosecute offenders and represent the United States government in court; the National Security Division, which coordinates the Department's highest priority of combating terrorism and protecting national security; the major investigative agencies - the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives - which prevent and deter crime and arrest criminal suspects; the United States Marshals Service, which protects the federal judiciary, apprehends fugitives, and detains persons in federal custody; and the Federal Bureau of Prisons, which confines convicted offenders.
U.S. Attorney Limtiaco also expounded on the United States Attorney General's priority goals, which are to detect and prevent terrorism; prosecute violent crime; combat computer crime, especially child pornography, obscenity, and intellectual property theft; prevent and prosecute illegal drugs; combat corporate and public corruption; and promote civil rights and civil liberties.
National Security Specialist Joe Quitano discussed regional security issues relevant to the national security of the United States. National Security Specialist Quitano also spoke about the Department of Justice's past and current prosecutions involving threats of terrorism to federal, state, and local levels and threats of Weapons of Mass Destruction (WMDs). In addition, he presented information on important elements that make up the country’s national security, current events that affect national security, information specific to Guam and the Northern Mariana Islands' vital role in contributing to national security, and tips on what citizens can do to help prevent threats of terrorism.
The following are photographs of U.S. Attorney Limtiaco and National Security Specialist
Joe Quitano giving remarks at the AFCEA Marianas TECH NET 2014 Conference:17 Schuele Boys Gang Members and Associates Charged with Drug TraffickingRead the Press Release
BUFFALO, N.Y. — U.S. Attorney William J. Hochul, Jr. announced today that 17 members and associates of the Schuele Boys Gang, a group which operated in the Schuele Street area of the East Side of Buffalo, were arrested and charged by criminal complaint with conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine and 280 grams or more of crack cocaine. The defendants are also charged with unlawful use of a communication facility in furtherance of a drug trafficking crime. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and a fine of $10,000,000.
“At a time when the entire region is experiencing a rebirth of hope and positive change, there are those who would harm the community through narcotics trafficking and acts of violence,” said U.S. Attorney Hochul. “As today’s operation demonstrates, law enforcement stands ready and able to identify and remove these threats to the public.”
Charged in the complaint are:
• Antwan Garner, 29, Buffalo
• Aaron Glenn, 41, North Tonawanda
• Jerome Grant, 33, Buffalo
• James Hicks, 44, Buffalo
• Xavier Hill, 42, Buffalo
• Demetrius Holmes, 23, Buffalo
• Damario James, 32, Buffalo
• Fred Johnson, 21, Buffalo
• Ikeem Lyons, 21, Buffalo
• Benjamin Peoples, 25, Buffalo
• Damario Robbins, 23, Buffalo
• Michael Robertson, 24, Buffalo
• Spencer Rogers, 50, Buffalo
• Antwon Steward, 31, Buffalo
• Shawntorrian Travis, 34, Buffalo
• Andre Wise, 36, Buffalo
• Marcel Worthy, 30, BuffaloAssistant U.S. Attorney George C. Burgasser, who is handling the case, stated that according to a complaint, during the summer of 2010, the Schuele Boys Gang, including defendant Marcel Worthy who is the alleged leader of the gang, were the targets of a mass shooting at the City Grill in downtown Buffalo. During the shooting, eight people were shot, four fatally. At the time, law enforcement officers believed that Marcel Worthy was a kilogram quantity cocaine trafficker.
The ensuing investigation utilized wire and electronic communications, confidential sources, controlled purchases of narcotics, and physical and video surveillance, to identify conspirators associated with the Schuele Boys Gang distribution network. The complaint further states that in addition to buying and selling illegal narcotics, the defendants were also involved in committing acts of violence including shootings.
The members and associates are alleged to have attempted to thwart law detection by law enforcement officers through the frequent changing of cellular telephones. The defendants also are alleged to have used other counter-surveillance techniques, including utilizing and frequently changing rental vehicles, employing evasive driving techniques, and speaking in coded language.
The criminal complaint is the culmination of an investigation on the part of the FBI's Safe Streets Task Force which includes representatives of the Amherst Police Department; the Buffalo Police Department; U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Cheektowaga Police Department; the Erie County Sheriff’s Department; the Hamburg Police Department; the Lancaster Police Department; the Niagara Frontier Transportation Authority Police; the New York State Department of Correctional Services; the New York State Police; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
22 July 2014
‘Enforcer’ for Atlantic City ‘Dirty Block’ Gang Sentenced to 151 Months in Prison for Heroin Trafficking ConspiracyRead the Press Release
CAMDEN, N.J. - An Atlantic City, New Jersey, man was sentenced today to 151 months in prison for engaging in a conspiracy to distribute heroin with a criminal street gang – the “Dirty Block” – which used threats, intimidation and violence to maintain control of the city’s illegal drug trade, U.S. Attorney Paul Fishman announced.
Defense counsel: Maggie Moy Esq., Assistant Federal Public Defender, Camden
Shaamel Spencer, a/k/a “Buck,” 30, previously pleaded guilty before U.S. District Judge Joseph E. Irenas to a superseding information charging him with one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin, and one count of being a previously convicted felon in possession of a firearm. Judge Irenas imposed the sentenced today in Camden federal court.
According to documents filed in this case and statements made in court: Spencer acted as an “enforcer” on behalf of Mykal Derry, 33, of Atlantic City, helping Dirty Block control the heroin trafficking trade in and around the public housing apartment complexes of Stanley Holmes, Carver Hall, Schoolhouse, Adams Court and Cedar Court. Spencer assisted in the distribution of heroin to Dirty Block customers.
Spencer was arrested on Oct. 30, 2012, and found to be in possession of a firearm. On Feb. 12, 2013, Spencer was charged with being a previously convicted felon in possession of a firearm and ammunition. A search warrant executed at Spencer’s residence at the time of his arrest revealed approximately $4,500 in suspected drug proceeds, as well as a 9-mm semi-automatic handgun and 44 rounds of ammunition.
Spencer and other members of the Dirty Block gang – a number of them previously convicted felons – had travelled to a shooting range in Lakewood, New Jersey, where they were photographed firing handguns.
At his plea hearing, Spencer admitted to distributing heroin. He also admitted to being a previously convicted felon who possessed firearms and ammunition, and that specifically, he took a handgun to an Atlantic City casino, where he believed Derry was involved in a violent fight with his rivals. Spencer also agreed to forfeit the proceeds of his drug trafficking as well as his firearms and ammunition.
In addition to the prison term, Judge Irenas sentenced Spencer to eight years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford; the Atlantic County Prosecutor’s Office, under the direction of Acting Prosecutor James P. McClain; the Atlantic City Police Department, under the direction of Police Chief Henry White; and the South Jersey Safe Streets Violent Incident and Gang Task Force, with the investigation leading to today’s sentencing.
The charges and allegations in the indictment charging Derry are merely accusations and the defendant is presumed innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorneys Patrick C. Askin and Justin C. Danilewitz of the U.S. Attorney’s Office Criminal Division in Camden
14-260Yah-Ta-Hay Man Pleads Guilty to Federal Voluntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Allen Harragarra, 34, a member of the Navajo Nation who resides in Yah-Ta-Hay, N.M., pleaded guilty this morning to a felony information charging him with voluntary manslaughter.
Harragarra was arrested in Dec. 2013, on a complaint alleging that he killed a Navajo man on Dec. 2, 2013, on the grounds of a school in Tohatchi, N.M., which is located within the Navajo Indian Reservation. According to the complaint, Harragarra stabbed the victim in the neck during a physical altercation.
During today’s plea hearing, Harragarra pled guilty to voluntary manslaughter and admitted killing the victim on Dec. 2, 2013, by stabbing him in the neck. In his plea agreement, Harragarra said he stabbed the victim once in the neck while he was acting out of fear and in the heat of passion.
Under the terms of his plea agreement, Harragarra will be sentenced to a federal prison term within the range of 60 to 66 months followed by a term of supervised release to be determined by the court. Harragarra remains in custody pending his sentencing hearing, which has yet to be scheduled.
The case was investigated by the Albuquerque and Gallup offices of the FBI and the Crownpoint District of the Navajo Nation Division of Public Safety, and is being prosecuted by Special Assistant U.S. Attorney David Adams.
Unlicensed Real Estate Appraiser Admits Role in Mortgage Fraud Scheme, Drug Possession and DistributionRead the Press Release
NEWARK N.J. – A Monmouth County, New Jersey, man today admitted his role in a large-scale mortgage fraud scheme as well as distribution and possession with the intent to distribute Methylone, U.S. Attorney Paul J. Fishman announced.
Paul Chemidlin , 42, of Morganville, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with conspiracy to commit wire fraud and with distributing and possessing Methylone.
According to documents filed in this case and statements made in court:
From March 2011 through July 2012, Chemidlin and others submitted false mortgage loan applications to mortgage lenders for a property on Smith Street in Elizabeth, New Jersey. Chemidlin submitted letters to mortgage lenders that falsely stated that the borrower was obtaining the funds necessary to close the real estate transaction from a relative or friend in the form of a gift, when the funds were actually coming from a codefendant. Chemidlin provided fraudulent real estate appraisals, although he was not a licensed real estate appraiser.
While under home detention for charges stemming from wire fraud, Chemidlin was arrested for distributing and possessing with the intent to distribute Methylone.
The conspiracy count carries a maximum potential penalty of 30 years in prison and a $1 million fine. The drug count carries a maximum penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for Nov. 10, 2014.
U.S. Attorney Fishman credited the FBI Newark Mortgage Fraud Task Force with the investigation leading to today’s charges: special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; special agents of the U.S. Housing and Urban Development, Office of Inspector General, Northeast Region of Investigations, under the direction of Special Agent in Charge Christina Scaringi; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Inspector General Steve Linick; special agents of the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), under the direction of Special Inspector General Christy Romero; special agents of IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and the Hudson County Prosecutor’s Office, under the direction of Acting Prosecutor Gaetano T. Gregory.
Today’s sentencing is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The pending charges and allegations against related defendants are merely allegations, and they are considered innocent unless and until proven guilty.The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark, Joshua Hafetz of the General Crimes Unit and Charlton A. Rugg of the Narcotics/OCDETF Unit.
14-259
Defense Counsel: Paul Condon Esq., Jersey City, N.J.
Chemidlin, Paul Information
United States Intervenes in Whistleblower Suit Against Symantec Corporation Alleging False Claims for Computer SoftwareRead the Press Release
The United States has intervened in a law suit against Symantec Corporation, alleging that Symantec submitted false claims to the United States on a General Services Administration (GSA) software contract, the Justice Department announced today. Symantec is a Fortune 500 company located in Mountain View, California, and it sells a variety of computer security products.
“This lawsuit demonstrates the government’s commitment to ensuring that the companies it does business with act with integrity,” said Assistant Attorney General Stuart Delery for the Department of Justice’s Civil Division. “When the United States spends taxpayer dollars based on contractors’ representations about their business practices, we expect to be given complete and accurate information.”
In 2007, Symantec entered into a Multiple Award Schedule contract with GSA that allowed Symantec to sell software and related items directly to federal purchasers. The case alleges that Symantec knowingly provided the United States with inaccurate and incomplete information about the prices it was offering to its commercial customers during the negotiation and performance of the contract. GSA used Symantec’s disclosures about its commercial sales practices to negotiate the minimum discounts Symantec was required to provide government agencies that bought Symantec software. In addition, the contract required Symantec to update GSA when commercial discounts improved and extend the same improved discounts to government purchasers. The suit contends that Symantec misrepresented its true commercial sales practices, ultimately leading to government customers receiving discounts far inferior to those Symantec gave to its commercial non-government customers. The contract at issue was in place from 2007 to 2012 and involved hundreds of millions of dollars in sales.
“When doing business with the government, honesty and transparency are essential,” said U.S. Attorney Ronald C. Machen Jr. for the District of Columbia. “We are committed to ensuring that contractors who do business with the federal government provide honest services, prices and products. We will continue to work with relators and federal investigators to protect federal taxpayer money.”
“Contractors cannot provide GSA with inaccurate and incomplete pricing data,” said GSA Acting Inspector General Robert C. Erickson. “American taxpayers deserve a fair deal.”
The suit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for the submission of false claims for government funds and to receive a share of any recovery. The False Claims Act also permits the government to intervene in such lawsuits, as it has done in this case. The lawsuit is pending in the District of Columbia.
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Columbia and GSA’s Office of Inspector General .
The case is captioned United States ex rel. Morsell v. Symantec Corp. , No. 12cv00800 (D.D.C.). The claims asserted against Symantec are allegations only; there has been no determination of liability.
United States Intervenes in Whistleblower Suit Against Symantec Corporation-Suit Alleges False Claims for Computer Software-Read the Press Release
WASHINGTON – The United States has intervened in a lawsuit against Symantec Corporation, alleging that Symantec submitted false claims to the United States on a General Services Administration (GSA) software contract, the Justice Department announced today. Symantec is a Fortune 500 company located in Mountain View, California, and it sells a variety of computer security products.
“This lawsuit demonstrates the government’s commitment to ensuring that the companies it does business with act with integrity,” said Assistant Attorney General Stuart Delery for the Department of Justice’s Civil Division. “When the United States spends taxpayer dollars based on contractors’ representations about their business practices, we expect to be given complete and accurate information.”
“When doing business with the government, honesty and transparency are essential,” said U.S. Attorney Ronald C. Machen Jr. “We are committed to ensuring that contractors who do business with the federal government provide honest services, prices and products. We will continue to work with relators and federal investigators to protect federal taxpayer money.”
In 2007, Symantec entered into a Multiple Award Schedule contract with GSA that allowed Symantec to sell software and related items directly to federal purchasers. The case alleges that Symantec knowingly provided the United States with inaccurate and incomplete information about the prices it was offering to its commercial customers during the negotiation and performance of the contract. GSA used Symantec’s disclosures about its commercial sales practices to negotiate the minimum discounts Symantec was required to provide government agencies that bought Symantec software. In addition, the contract required Symantec to update GSA when commercial discounts improved and extend the same improved discounts to government purchasers. The suit contends that Symantec misrepresented its true commercial sales practices, ultimately leading to government customers receiving discounts far inferior to those Symantec gave to its commercial non-government customers. The contract at issue was in place from 2007 to 2012 and involved hundreds of millions of dollars in sales.
“Contractors cannot provide GSA with inaccurate and incomplete pricing data,” said GSA Acting Inspector General Robert C. Erickson. “American taxpayers deserve a fair deal.”
The suit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for the submission of false claims for government funds and to receive a share of any recovery. The False Claims Act also permits the government to intervene in such lawsuits, as it has done in this case. The lawsuit is pending in the District of Columbia.
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Columbia and GSA’s Office of Inspector General.
The case is captioned United States ex rel. Morsell v. Symantec Corp., No. 12cv00800 (D.D.C.). The claims asserted against Symantec are allegations only; there has been no determination of liability.
14-169Two Men Indicted in Multi-Million Dollar Mortgage Fraud SchemeDefendants Allegedly Part of Larger Fraud Against Banks and Lenders Using Washington, D.C.-Area Real EstateRead the Press Release
WASHINGTON –Edward Dacy, 76, of West Melbourne, Fla., and A. Conrad Austin, 49, of Bowie, Md., have been indicted on conspiracy, bank fraud, and other federal charges stemming from a multi-million dollar mortgage fraud scheme in which they are accused of assisting their co-conspirators to defraud banks and mortgage lenders through the purchase of residential real estate in the District of Columbia and Maryland.
The indictment, unsealed today in the U.S. District Court for the District of Columbia, was announced by U.S. Attorney Ronald C. Machen Jr.; Michael P. Tompkins, Special Agent in Charge, Washington Field Office, Department of Justice Office of the Inspector General; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Kathy A. Michalko, Special Agent in Charge, Washington Field Office, U.S. Secret Service; Cary Rubenstein, Special Agent in Charge, Mid-Atlantic Region, Office of the Inspector General of the U.S. Department of Housing and Urban Development (HUD); John Roth, Inspector General of the Department of Homeland Security (DHS), and Michael P. Stephens, Acting Inspector General for the Federal Housing Finance Agency Office of Inspector General.
Dacy and Austin, who were arrested today, were named in a 19-count indictment charging them with conspiracy, bank fraud, wire fraud, and mail fraud. Dacy is charged with all 19 counts; Austin is charged with conspiracy, one of the five bank fraud counts, all of the nine wire fraud counts, and two of the four mail fraud counts. The indictment also includes forfeiture allegations seeking all proceeds that can be traced to the scheme.
The government also announces the following seven guilty pleas, all of which occurred before the Honorable Reggie B. Walton in the U.S. District Court for the District of Columbia:
Frank Davis, Jr., 49, of Washington, D.C., pled guilty on April 30, 2014 to conspiracy to commit bank fraud. The plea carries a potential sentencing guideline term of imprisonment of 51 to 63 months, $2,296,463 in restitution, supervised release, fines and forfeiture.
Lonnie Johnson, 47, of Greensboro, N.C., pled guilty on May 2, 2013 to conspiracy to commit bank fraud. The plea carries a potential sentencing guideline term of imprisonment of 18 to 24 months, $375,000 in restitution, supervised release, and fines.
Cheryl E. Morrison, 54, of West Melbourne, Fla., pled guilty on Sept. 25, 2013, to conspiracy to commit mail fraud. The plea carries a potential sentencing guideline term of imprisonment of 10 to 16 months, $42,600 in restitution, supervised release, fines and forfeiture.
Pauline Pilate, 50, of Washington, D.C., pled guilty on July 3, 2014 to conspiracy to commit bank fraud. The plea carries a potential sentencing guideline term of imprisonment of 18 to 37 months, at least $341,070 in restitution, supervised release, fines and forfeiture.
Frederick Robinson, Sr., 52, of Montgomery, Ala., pled guilty on April 23, 2014, to conspiracy to commit bank fraud. The plea carries a potential sentencing guideline term of imprisonment of 37 to 46 months, $971,900 in restitution, supervised release, fines and forfeiture.
Howard Tutman, III, 54, of Woodstock, Md., pled guilty on July 2, 2014 to conspiracy to commit bank fraud. The plea carries a potential sentencing guideline term of imprisonment of 24 to 37 months, $606,414 in restitution, supervised release, fines and forfeiture.
Anthony Young, 47, of Clinton, Md., pled guilty on Jan. 30, 2013 to conspiracy to commit bank fraud. The plea carries a potential sentencing guideline term of imprisonment of 27 to 33 months, $378,118 in restitution, supervised release, and fines.
According to the indictment, Dacy and Austin defrauded banks, mortgage lenders, and the Federal Housing Administration, “FHA,” (part of U.S. Department of Housing and Urban Development) of money by assisting others to obtain mortgage loans on residential real estate properties through false loan applications and documents and fraudulent settlements, ultimately causing a loss to the banks, lenders, and FHA when mortgages were not paid.
The indictment states that co-conspirators Frank Davis, Jr., and Frederick Robinson, Sr. purchased properties in the names of general partnerships; Davis and Robinson would then recruit individuals to re-purchase these same properties for higher amounts, funded by fraudulently obtained mortgage loans, by promising the buyers that they would not be required to: make financial contributions toward the purchase of the properties; pay the monthly mortgage payments or expenses; or maintain the properties. The straw buyers were used to purchase a number of properties; the indictment lists 15 transactions seeking or obtaining in excess of $4.3 million in mortgage loans.
Furthermore, according to the indictment, Austin is a Certified Public Accountant (“CPA”) licensed in the State of Maryland. CPAs are licensed by an authorizing state or District of Columbia agencies, and may prepare tax returns and other financial documents. CPAs are required periodically to attest that they had received continuing ethical training to maintain their CPA license. Mortgage lenders often give deference to documents prepared by CPAs based on the stringent standards required of CPAs to provide accurate analysis supported by detailed documentation. In order to obtain mortgage loans in the names of some of the straw buyers, Robinson recruited Austin to create false CPA letters, inflated tax returns, and unjustified financial statements.
The indictment further alleges that Dacy was an agent for a settlement company, which would receive the funding from the mortgage lender and the buyer’s cash contribution and would be under the obligation to disburse the money only if all of the mortgage lender’s conditions were met and the buyer’s financial contribution collected. Only then would the settlement company be authorized to release the lender’s money, and pay the costs of the closing, the debts of the property or seller, and any other authorized expenses as set forth on the Settlement Statement. According to the indictment, Dacy handled the straw buyers’ settlement of the properties, with knowledge that the straw buyers did not pay the cash contribution as required by the lenders.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charges, U.S. Attorney Machen, Special Agent in Charge Tompkins, Assistant Director in Charge Parlave, Special Agent in Charge Michalko, Special Agent in Charge Rubenstein, Inspector General Roth, and Acting Inspector General Stephens expressed appreciation for the work performed by Special Agents and analysts from the FBI, U.S. Secret Service, and the Offices of Inspector General of Department of Homeland Security, Department of Justice, Department of Housing and Urban Development, and Federal Housing Finance Agency. They also acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office, including Paralegal Specialists Donna Galindo, Corinne Kleinman, and Kristy Penny, Assistant U.S. Attorneys Anthony Saler and Arvind K. Lal, and Assistant U.S. Attorney Virginia Cheatham, who is prosecuting the case.
14-170Turkish Man Pleads Guilty to Smuggling Counterfeit Cancer DrugsRead the Press Release
St. Louis, MO – OZKAN SEMIZOGLU, the “Foreign Trade Director” of a Turkish drug wholesaler, pled guilty today to smuggling counterfeit, misbranded and adulterated cancer treatment drugs into the United States, including multiple shipments of Altuzan® (the Turkish version of Avastin®) sent from Turkey to Chesterfield, Missouri. Sentencing is set for October 28, 2014.
According to Semizoglu’s plea agreement, Semizoglu used shipping labels that concealed the illegal nature of the prescription drug shipments, including customs declarations falsely describing the contents as "gifts" or "documents" or “product sample” with no or low declared monetary values. Semizoglu also ensured that large drug shipments were broken into several smaller packages to reduce the likelihood of seizures by U.S. Customs authorities and the corresponding loss of expensive drug shipments. Additionally, Semizoglu shipped some prescription drugs that needed constant cold temperatures to maintain their stability and effectiveness in shipping boxes without insulation or any temperature protection whatsoever. Given the length of time required to ship products from Turkey to Missouri, Semizoglu was aware that on many occasions the packages arrived in the United States at temperatures outside the constant cold temperature range discussed on the drugs’ labeling.
Further, Semizoglu admitted in his plea agreement to selling Altuzan® to Richard Taylor, a United Kingdom drug wholesaler. The U.S. Food and Drug Administration’s (“FDA”) Office of Criminal Investigations (“FDA-OCI”) previously seized Altuzan® from various physician/customers of Taylor in 2012, and ultimately determined that this Altuzan® from Taylor and Semizoglu was counterfeit, with no active drug ingredient in the drug vials. FDA issued several public safety alerts about these events. FDA-OCI’s ongoing investigation has led to a number of related prosecutions in this District, including Dr. Abid Nisar, Sandra Behe, James Newcomb, Richard Taylor, Dr. Erick Falconer, Greg Martin, Kamaldeep Sandhu and Navdeep Sandhu.
“Today’s guilty plea marks a significant step in national and international cooperation,” said Philip J. Walsky, acting director, FDA Office of Criminal Investigations. “Federal, state and local officials in the U.S. and Germany and at Europol worked together in partnership to help protect the public’s health and remove a potentially unsafe medication from the U.S. marketplace.”
This case was investigated by FDA’s Office of Criminal Investigations, with assistance from the United States Marshal’s Service; Rosa Emilia Rodríguez-Vélez , the United States Attorney for the District of Puerto Rico; the Office of Inspector General for the U.S. Department of Health and Human Services; the Johnson County, Kansas Sheriff’s Office Criminalistics Laboratory; Europol, the Bonn prosecutor in Germany (Staatsanwaltschaft); the Federal Criminal Police of Germany (Bundeskriminalamt, BKA); the Dusseldorf Police; the German State Criminal Police (Landeskriminalamt, LKA); the U.S. Department of State’s Diplomatic Security Service; the U.S. Consulate General’s Overseas Criminal Investigations Branch in Istanbul, Turkey and the Drug Enforcement Administration.
Tampa Man Sentenced to 15 Years in Federal Prison for Possessing A Firearm and AmmunitionRead the Press Release
Tampa, FL – U.S. District Judge James D. Whittemore yesterday sentenced Ulrich Johnson (27, Tampa) to 15 years in federal prison for being a felon in possession of a firearm and ammunition. The Court also ordered Johnson to forfeit the firearm and ammunition. Johnson pleaded guilty on April 24, 2014.
According to court documents, on June 2, 2013, officers from the Tampa Police Department attempted to pull over a car in which Johnson was the passenger. The driver of the car, Johnson’s co-defendant, Michael Caro, refused to pull over and fled from the officers. As the driver fled, Johnson threw a loaded firearm and a pill bottle containing crack cocaine, which had been intended for distribution, from the car’s window. The officers eventually apprehended Johnson and Caro. Prior to possessing the firearm and ammunition, Johnson had been convicted of multiple felony offenses. As such, he was prohibited from possessing a firearm or ammunition under federal law.
Michael Caro, also a previously convicted felon, pleaded guilty to being a felon in possession of a firearm in December 2013. On June 26, 2014, he was sentenced to 46 months’ imprisonment by U.S. District Judge James S. Moody, Jr.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Joseph W. Swanson.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is another example of ATF’s Frontline Strategy to impact violent crime within our communities.
Tahlequah Man Pleads Guilty to Firearm PossessionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that CHUCK ALLEN EASTHAM, age 41, of Tahlequah, Oklahoma, pled guilty to Felon in Possession of a Firearm, in violation of Title 18, United States Code, Section 922(g)(1).
The charge is a result from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The defendant was indicted in March, 2014.
The Indictment alleged that on or about October 24, 2013, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, one Marlin (Glenfield) Model 30A, 30-30 Caliber lever action rifle, which had been shipped and transported in interstate commerce.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is not more than 10 years imprisonment, and/or up to a $250,000.00 fine.
Assistant United States Attorney Kyle Waters represented the United States.
Statement by Justice Department Spokesperson on King V. Burwell and Halbig V. BurwellRead the Press Release
WASHINGTON—The Department of Justice released the following statement Tuesday from spokesperson Emily Pierce regarding the ruling in the case of King v. Burwell by the Fourth Circuit Court of Appeals and the ruling by the D.C. Circuit Court of Appeals in the case of Halbig v. Burwell:
“Today, the Fourth Circuit unanimously ruled in support of Congressional intent and common sense: that an American may receive tax credits to make health care more affordable regardless of whether they are participating in a state-run or a federally-facilitated marketplace. While two appeals judges ruled differently, four appeals judges have now cast their votes with two lower courts, Congress, and the Affordable Care Act. In the meantime, to be clear, people getting premium tax credits should know that nothing has changed, tax credits remain available.”
St. Joseph Woman Sentenced for $1 Million Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., woman was sentenced in federal court today for a wire fraud scheme in which she stole nearly $1 million from two companies in which she was a part owner.
Vicky Diane McDonell, 63, of St. Joseph, was sentenced by U.S. District Judge Gary A. Fenner to five years in federal prison without parole. The court also ordered McDonell to pay $940,410 in restitution to Max Pro Consultants, Inc., and MPC Billboards, Inc. This restitution encompasses both the $906,415 she stole from the companies as well as legal fees paid by the victims in a civil suit against McDonell in an attempt to recover the money she stole. The victims dropped the suit before they recouped any of their losses because they could no longer afford to pursue it.
On Oct. 18, 2013, McDonell pleaded guilty to one count of wire fraud for using a business credit card to pay $201 in personal expenses at The Elms Resort & Spa in Excelsior Springs, Mo. According to court documents, McDonell’s fraud scheme lasted for nearly 12 years, from June 13, 1997, to March 15, 2009. During that time, she committed more than 2,440 acts of theft – including an act of theft every single week – and stole a total of $906,415 from Max Pro and MPC Billboards.
Max Pro is a real estate company that manages properties upon which billboards are affixed. In 1997, MPC Billboards was formed and incorporated as a sister company to Max Pro. MPC is a billboard sales company. In addition to her duties as office manager, in 1999 McDonell was granted a 10 percent interest in both companies, making her a partner. McDonell also became treasurer of both companies, which included management of the companies’ day-to-day financial matters.
According to court documents, McDonell involved her children in her crimes. McDonell embezzled by paying thousands of dollars from company accounts to her son and teenage daughter for unauthorized work; she never filed 1099s for this supposed employment. McDonell also gave her daughter a company credit card and allowed her to charge to it. McDonell also used her mother in her fraud scheme. McDonell wrote a $5,000 business check to her mother for “contract cleaning,” despite the fact that her mother never cleaned and never received any money from MPC or Max Pro.
When the partners first discovered McDonell’s embezzlement, court documents say, they allowed her to continue her employment on her promise that she would stop embezzling. However, after her victims showed her this mercy on Feb. 10, 2009, McDonell continued to embezzle at a steady clip, charging hundreds of dollars for personal meals at bars and restaurants to company credit cards.
Court documents report on McDonell’s conduct after being caught. McDonell continued to steal from the victims. After her employment was terminated, McDonell took her company car, obtained a loan against the company car, traded in the company car for a personal vehicle, and wrote a company check for a payment on her personal vehicle. McDonell also violated the victims’ privacy rights by hiding a voice-activated digital recorder in the victims’ office to listen to private conversations of the victims, in violation of federal law.
McDonell sabotaged the victims’ business records, according to court documents. In addition to making thousands of false entries in the companies’ books, McDonell stole more than four years of bank records and retained nearly all the check registers from her tenure, making the full extent of her theft nearly impossible to ascertain. McDonell also sabotaged the victims’ computer records. McDonell enlisted her son to erase records and password-protect them, making them inaccessible to the victims. To this day, the companies’ partners are unable to access many of their corporate records due to McDonell’s actions.
The court found that McDonell obstructed the investigation by providing investigators with false statements about the scope of her embezzlement. McDonell also erased data off the computers at the businesses she defrauded. McDonell’s sentence therefore includes an enhancement for obstruction of justice.
This case was prosecuted by Assistant U.S. Attorney Roseann A. Ketchmark. It was investigated by the FBI.
St. Johns County Man Sentenced to More Than 8 Years for Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard sentenced Christopher Scott O’Brien, II (23, St. Johns County) to 8 years and 4 months in federal prison for receiving child pornography over the Internet. O’Brien was also ordered to serve a 10-year term of supervised release and register as a sex offender following his release.
According to court documents, an agent with the Florida Department of Law Enforcement began an undercover investigation to identify individuals, in the Jacksonville area, that had access to and/or were trading images and videos depicting child pornography over the Internet. The agent determined that a host computer in that area was hosting images of child pornography, using a file sharing program. The agent made successful connections to the host computer and downloaded several video files directly from the computer. Further investigation traced the subscriber information to a residence in St. Johns, Florida, where O’Brien resided.
On February 26, 2013, FDLE agents and other law enforcement officers executed a search warrant at the residence and seized several computers and other electronic media. Subsequent analysis of O’Brien’s computer revealed that it contained approximately 838 videos in the “Saved” folder, at least 50 of which depicted minors engaged in sexually explicit conduct.
This case was investigated by the Florida Department of Law Enforcement, the Federal Bureau of Investigation, and the St. Johns County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another 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.usdoj.gov/psc.
Springfield Sex Offender Indicted for Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a registered sex offender in Springfield, Mo., was indicted by a federal grand jury today for receiving and distributing child pornography over the Internet.
Anthony Richard Salois, 47, of Springfield, was charged in a two-count indictment returned by a federal grand jury in Springfield.
Today’s indictment alleges that Salois received and distributed child pornography over the Internet between Sept. 16 and 20, 2013. Because Salois has a prior state conviction for sexual abuse involving a minor, upon conviction he would be subject to a mandatory minimum sentence of 15 years in federal prison without parole.
The indictment also charges Salois with being in possession of child pornography on Oct. 10, 2013. Due to his prior state conviction, this count carries a mandatory minimum sentence upon conviction of 10 years in federal prison without parole.
The federal indictment also contains a forfeiture allegation, which would require Salois to forfeit to the government two desktop computers and 121 optical media.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the FBI and the Southwest Missouri Cyber Crime Task Force.
Project Safe Childhood
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.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."