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Friday 30 May 2014
Man Charged with Obstructing Marathon Bombing InvestigationRead the Press Release
BOSTON - A Quincy man has been charged with obstructing the investigation of the Boston Marathon bombings.
Khairullozhon Matanov, 23, of Quincy, is charged in an indictment that was unsealed today, with one count of destroying, altering, and falsifying records, documents, and tangible objects in a federal investigation, specifically information on his computer, and three counts of making materially false, fictitious, and fraudulent statements in a federal terrorism investigation.
It is alleged that, after the release of the photos of the suspected bombers in the late afternoon of Thursday, April 18, 2013, and again early in the morning of Friday, April 19, 2013, Matanov realized that the FBI would likely want to talk with him because of his ties to the bombers, especially in the week following the bombings. Matanov allegedly then took a series of steps to impede the FBI’s investigation into the extent of his friendship, contact, and communication with the suspected bombers, and the fact that he shared the suspected bombers’ philosophical justification for violence. In addition to deleting information from his computer, Matanov made a number of false statements to federal investigators. The indictment does not charge Matanov with participating in the Marathon bombings or knowing about them ahead of time.
The maximum sentence for the count of destruction of evidence is 20 years in prison and eight years for each false statement count. All four counts also carry a maximum of three years of supervised release and a fine of $250,000.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Division; and Superintendent William Taylor of the Lowell Police Department, made the announcement today. This investigation was conducted by members of the Joint Terrorism Task Force, which is composed of officers from other federal, state and local law enforcement agencies. Assistance in the investigation was also provided by the Boston Police, Braintree Police, Waltham Police and Quincy Police Departments; the Massachusetts State Police; Customs Border Protection; and Naval Criminal Investigative Service.
The case is being prosecuted by Scott L. Garland and Aloke S. Chakravarty of Ortiz’s Anti-Terrorism and National Security Unit.
The details contained in the Indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
(Download Indictment )
Luzerne County Court Employee Charged Federally with Stealing County FundsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a criminal information was filed in U.S. District Court in Scranton charging Luzerne County Court employee, Stacey McGlone, age 37, of McAdoo, Pennsylvania, with stealing in excess of $5,000 from the Luzerne County Probation/Parole office, under the supervision of the County Court of Common Pleas, during the course of her employment with that office.
According to United States Attorney Peter Smith, McGlone was responsible for the collection of funds from individuals receiving services associated with the Probation/Parole Office, as well as debts owed by those individuals, including fines, costs and restitution debts incurred in connection with court proceedings. McGlone allegedly failed to make proper disposition of funds that came into her possession by reason of her employment. The Information charges that between January 2009 and March 2014, McGlone stole in excess of $5,000 in cash from payments she collected.
Federal jurisdiction to prosecute the case is based on the fact that Luzerne County and the Luzerne County Court of Common Pleas each received more than $10,000 in federal funds annually.
The government also filed a plea agreement with McGlone which must be approved by the U.S. District Court.
McGlone faces up to 10 years in prison and fines in the amount of $250,000. McGlone’s employment with Luzerne County and the Court of Common Pleas has been terminated.
The prosecution is the result of a joint investigation by the Federal Bureau of Investigation (FBI), and the Luzerne County District Attorney’s Office. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 10 years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Locust Grove Man Pleads Guilty to Oxycodone ConspiracyRead the Press Release
Defendant sold drugs outside Dumfries day care center that was owned and operated by his wife
ALEXANDRIA, Va. – Ralph Caldwell, 38, of Locust Grove, Virginia, pleaded guilty today to conspiring to distribute oxycodone.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Liam O’Grady.
Caldwell was indicted on May 8, 2014, by a federal grand jury on charges of conspiracy to distribute oxycodone and distribution of oxycodone. Caldwell faces a maximum penalty of 20 years in prison and a $1 million fine when he is sentenced on September 5, 2014 at 9:00 a.m.
According to court records, from January 2011 to March 2014, Caldwell distributed oxycodone to customers throughout Prince William County, Virginia. As part of the conspiracy, Caldwell and others used the area near the Little Angels Day Care, a children’s day care center in Dumfries, Virginia, to sell oxycodone and arrange transactions. Caldwell told one of his co-conspirators—who was both the parent of a child being supervised at the day care and one of Caldwell’s suppliers—that payment for childcare services could be rendered in the form of a negotiated amount of oxycodone. Caldwell’s wife owned and operated the day care.
As part of the statement of facts entered with the plea, Caldwell admitted that he conspired to distribute oxycodone and that he sold oxycodone to a confidential informant on three separate occasions in February 2014 at locations within Dumfries and Triangle, Virginia.
This case was investigated by the FBI’s Washington Field Office, with assistance from the Prince William County Police Department. Special Assistant U.S. Attorney Kevin Lowell and Assistant U.S. Attorney Gene Rossi are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Local Doctor Charged with Health Care FraudRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Sreekrishna M. Cheruvu, M.D., 58, of East Amherst, N.Y., has been arrested and charged by criminal complaint with health care fraud and submitting false statements relating to health care matters. The charges carry a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney MaryEllen Kresse, who is handling the case, stated that according to the complaint, the defendant treats patients for opioid addiction at his office in Williamsville, N.Y. Between January 2009 and December 2013, Cheruvu submitted false and fraudulent claims to private insurance companies seeking reimbursement for services allegedly provided. Claims submitted by the defendant included reimbursement for individual counseling sessions when patients were actually seen in a group therapy setting, and reimbursement for services Cheruvu allegedly provided while he was, in fact, out of the country.
For example, some of the defendant’s patients reported that between eight and fifteen patients attended the group therapy sessions that were billed as individual counseling sessions. The patients also stated that counselors, not Cheruvu, led the group therapy sessions and that when the defendant did attend a session, he stayed for about 10 minutes at the beginning or end of the session.
In November 2013, a search warrant was executed at the defendant’s Williamsville office. Records seized during the search revealed that on multiple occasions, Cheruvu billed insurance companies for therapy sessions that he did not attend.
According to the complaint, the defendant submitted false and fraudulent claims for payment to HealthNow, Independent Health and Excellus totaling approximately $628,000.
The complaint further alleges that Cheruvu submitted claims for payment totaling $147,000 on dates it was determined that the defendant was outside of the country.
“Perpetuating fraud on the health care industry drives up the cost for everyone, including taxpayers who fund government health care programs and all who contribute directly to their own health care costs,” said U.S. Attorney Hochul.
The defendant made an initial appearance today before U.S. Magistrate Judge H. Kenneth Schroeder and is being detained.
The Criminal Complaint was the result of an investigation on the part of Special Agents of the Federal Bureau of Investigation.
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.Law Enforcement and Community Members Partner to Combat Crimes Against ChildrenRead the Press Release
Jacksonville, FL - U.S. Attorney A. Lee Bentley, III and representatives of several federal, state and local law enforcement agencies are continuing the observance of National Missing Children's Day (May 25th) by today convening in Jacksonville, Florida to announce the national "Take 25" child safety campaign. This campaign highlights the cooperative efforts among federal, state, and local agencies to prevent, enforce, and prosecute crimes of exploitation against children. The "Take 25" campaign was created in 2007 by the National Center for Missing and Exploited Children (NCMEC). This campaign encourages parents to take 25 minutes to talk to their children about safety and ways to prevent abduction.
“Child predators are using more cunning and persuasive techniques to lure and exploit innocent children,” said U.S. Attorney A. Lee Bentley, III. “It is up to us, as a community, to educate and protect our children from these hidden dangers – online and elsewhere.”
The Department of Justice is committed to the safety and well-being of our children and has placed a high priority on protecting and combating the sexual exploitation of minors. In 2006, Project Safe Childhood was launched by the Department of Justice as a unified and comprehensive strategy to combat child exploitation by combining law enforcement efforts, community action, and public awareness. It marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals, who exploit children via the Internet, and to identify and rescue victims. The goal of Project Safe Childhood is to reduce the incident of sexual exploitation of children.
From October 1, 2010 through September 30, 2013, the U.S. Attorney's Office for the Middle District of Florida, with the close assistance of numerous federal, state, and local agencies, brought 292 Project Safe Childhood cases against 297 individuals. The charges in those cases vary by defendant, but they include conspiring to travel in interstate commerce to engage in illicit sexual conduct, production of child pornography, distribution and receipt of child pornography, and possession of child pornography. In addition, the MDFL has prosecuted numerous cases involving human trafficking, where individuals, including minors, were forced to commit commercial sex acts. These cases were brought by each of the five division offices of the Middle District of Florida.
Children of all ages are victimized by child pornography producers, from as young as infants and toddlers to adolescents. About half of the victims are younger than 12 years of age. NCMEC reports that 24 percent of identified victims were pubescent, and 76 percent were prepubescent.
Law enforcement agencies participating today’s event included the Federal Bureau of Investigation; U.S. Immigration and Customs Enforcement's Homeland Security Investigations; the Naval Criminal Investigative Service; the Florida Department of Law Enforcement; State Attorney’s Office (Fourth Judicial Circuit); Jacksonville Sheriff's Office; Clay County Sheriff’s Office, and the St. Johns County Sheriff’s Office.
Lancaster Resident Sentenced for Importing MethRead the Press Release
LAREDO, Texas – Elmer Resendiz, 22, of Lancaster, has been ordered to prison following his conviction of importing more than five kilograms of methamphetamine from Mexico, announced United States Attorney Kenneth Magidson. Resendiz pleaded guilty Sept. 6, 2013.
Today, Senior U.S. District Judge George Kazen handed Resendiz a total sentence of 135 months in federal prison followed by a five-year-term of supervised release. At the hearing, Judge Kazen commented on the involvement of relatives of Resendiz in the commission of the offense.
On June 9, 2013, Resendiz was detained by Customs and Border Protection (CBP) officers as he attempted to enter the United States at the Lincoln-Juarez Port of Entry No. 2, in Laredo. At that time, CBP officers found a noticeable amount of bondo in addition to signs of recent tampering with front passenger side wheel well and left front quarter panel. Resendiz and his vehicle were then sent for secondary inspection, at which time 9.94 kilograms of methamphetamine were discovered bundled inside a hidden compartment in the firewall of his vehicle.
Resendiz admitted to importing the drugs for individuals in the U.S. He stated he was driving the drug-laden vehicle to Lancaster and was to be paid $10,000 for his efforts.
Resendiz was permitted to voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by CBP and Homeland Security Investigations. Assistant U.S. Attorney Christopher S. Coker prosecuted the case.
Lakeland Man Sentenced to More Than 33 Years for Sex Trafficking and Child Pornography ChargesRead the Press Release
Tampa, Florida – United States District Judge Steven D. Merryday yesterday sentenced Michael Gallon (49, Lakeland) to a term of 33 years and 9 months’ imprisonment for sex trafficking of a minor by force, fraud or coercion and a concurrent term of 20 years in federal prison for distributing child pornography. He was also ordered to serve a lifetime of supervision, upon his release. Gallon pleaded guilty to the charges on February 5, 2014.
According to the plea agreement, Gallon was a “pimp” who was operating in Florida and the southeastern United States. He recruited adult and minor females to join his “dance team.” Gallon then transported the females to bachelor parties and house parties that he arranged. The females danced and performed acts of prostitution at the parties. Gallon set up “VIP” rooms at each of the parties, where he would encourage the females to engage in commercial sex acts. Gallon charged the women to use the “VIP” rooms; he also kept most of the money the women earned. Law enforcement has identified at least twelve minor-aged victims of Gallon’s crime.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Lakeland Police Department. It is being prosecuted by Assistant United States Attorney Stacie B. Harris.
It is another case 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.
Jersey City Police Officer Pleads Guilty to Transportation of Stolen Goods and ExtortionRead the Press Release
TRENTON, N.J. – A Jersey City, N.J. police officer today admitted stealing more than half a million cigarettes from a trailer and extorting $20,000 from a drug courier who turned out to be an undercover FBI agent, U.S. Attorney Paul J. Fishman announced.
Mario Rodriguez, 39, of Jersey City, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with transportation of stolen goods and extortion under color of official right.
According to documents filed in the case and statements made in court:
On July 3, 2013, Rodriguez and an individual working for the FBI as a confidential informant (CI) drove to a warehouse in Secaucus, N.J., to break into a trailer, steal cigarettes and sell the stolen goods to the CI’s associate. Law enforcement agents had previously parked the trailer at the warehouse and established surveillance of the area.
After using bolt-cutters to cut the lock off of the trailer, Rodriguez and the CI loaded 50 cases containing approximately 600,000 cigarettes and six televisions from the trailer into their vehicle. As they drove the stolen items to a parking lot in Staten Island, N.Y., Rodriguez made several phone calls seeking buyers for the TVs.
The pair met the CI’s associate – actually an undercover officer – in the parking lot to get the $5,000 payment for the cigarettes. Rodriguez kept $3,000 of the cash and three of the TVs.
On July 10, 2013, Rodriguez, the CI and an undercover law enforcement agent met in New Jersey and discussed the possibility of robbing a drug courier, who was actually another undercover officer. On July 24, 2013, the group met again in Staten Island to discuss the plan. The undercover officer told Rodriguez the courier would be delivering cocaine to them that day in exchange for a $20,000 payment. Rodriguez suggested a Jersey City mall parking lot due to an absence of surveillance cameras and called his associate, Anthony Roman, 48, of Jersey City, who was not a law enforcement officer, to help him with the robbery. Roman was charged with one count of Hobbs Act extortion.
Later that day, Rodriguez and Roman drove an SUV to the location where the CI and the drug courier were parked. Law enforcement agents had already established surveillance and staged the car containing $20,000 cash in a plastic bag. Rodriguez and Roman approached the car and identified themselves as law enforcement officers who were investigating the CI. They pretended to arrest the CI, threatened to arrest the drug courier and took the cash.
Later that day, Rodriguez, the CI and the undercover agent met in a hotel room at a Pennsylvania casino to split the cash.
The cargo theft and conspiracy to commit extortion charges to which Rodriguez pleaded guilty carry a maximum potential penalty of 10 and 20 years in prison, respectively. Both counts also carry a maximum fine of $250,000. Sentencing is scheduled for Sept. 26, 2014. Rodriguez has been suspended from the police department.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Special Investigations Unit of the Jersey City Police Department, under the direction of Acting Chief Joseph Connors; the Hudson County Prosecutor’s Office, under the direction of Acting Prosecutor Gaetano T. Gregory; and criminal investigators of the U.S. Attorney’s Office with the investigation leading to today’s plea. He also thanked the Bayonne Police Department, Waterfront Commission of New York Harbor, IRS-Criminal Investigation, U.S. Department of Labor Office of Inspector General, and the N.J. State Commission of Investigation for their significant contributions to the investigation.
The government is represented by Acting Deputy Chief of the General Crimes Unit Jonathan W. Romankow in Newark.
The charges against Roman remain pending. They are merely accusations, and he remains innocent unless and until proven guilty.
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Defense counsel: Brian J. Neary Esq., Hackensack, N.J.
Rodriguez, Mario Information
Inmates Indicted for Conspiracy to Commit Murder, Assault and RiotingRead the Press Release
Jackson, Miss – A Grand Jury has indicted Hector Miguel Diaz-Osuna, Ricardo Gonzalez-Porras and Jesus Beltran-Rodriguez for conspiracy to commit murder, U.S. Attorney Gregory K. Davis announced today. Gonzalez-Porras was also charged with assaulting a prison guard. Two other defendants, Juan Geraldo Arredondo and Ernesto Granados, were charged in the indictment with rioting.
The indictment alleges that the defendants’ crimes were committed during a May 20, 2012 riot at the Adams County Correctional Center. The case is set for trial in August 2014 before Senior U.S. District Judge David Bramlette, III.
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Inmate Sentenced for Rioting in A Federal PrisonRead the Press Release
Jackson, Miss – Gerson Benavides, age 30, originally of Reynosa, Mexico, was sentenced on May 29, 2014, by Senior U.S. District Judge David Bramlette, III, to 75 months imprisonment, U.S. Attorney Gregory K. Davis announced today. Benavides was previously convicted of rioting at the Adams County Correctional facility. The riot occurred on May 20, 2012. Benavides was also ordered to pay restitution in the amount of $1,382,113.00.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Patrick Lemon.
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Inmate Sentenced for Rioting in A Federal PrisonRead the Press Release
Jackson, Miss – Humberto Cuellar, age 41, originally of Nuevo Laredo, Mexico, was sentenced on May 29, 2014, by Senior U.S. District Judge David Bramlette, III, to 110 months imprisonment, U.S. Attorney Gregory K. Davis announced today. Cuellar was previously convicted of rioting at the Adams County Correctional facility. The riot occurred on May 20, 2012. Cuellar was also ordered to pay restitution in the amount of $1,382,113.00.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Patrick Lemon.
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Indictment: Bank Fraud Scheme Started with Stolen MailRead the Press Release
WICHITA, KAN. – Four defendants appeared in federal Court in Wichita Friday on federal charges of conspiring to steal U.S. mail and commit bank fraud, U.S. Attorney Barry Grissom said.
The indictment alleges conspirators used sticky rodent traps to steal mail from U.S. mail boxes, including checks that had been placed in the mail. Conspirators cashed the stolen checks by adding another person’s name to the payee line, removing the name of the original payee and replacing it with another name, or manufacturing counterfeit checks using account information on the stolen checks.
A federal grand jury in Wichita indicted the following defendants:
Justin Anderson, 19, Wichita, Kan., one count of conspiracy to commit bank fraud, one count of conspiracy to commit mail theft, one count of unlawful possession of a firearm after a felony conviction, one count of unlawful possession of a firearm in furtherance of drug trafficking, five counts of theft or receipt of stolen mail and two counts of bank fraud.
Jeremy Robinson, 35, Wichita, Kan., one count of conspiracy to commit bank fraud, one count of conspiracy to commit mail theft, three counts of theft or receipt of stolen mail, and one count of bank fraud.Madison P. Allen, 19, Wichita, Kan., one count of conspiracy to commit bank fraud, one count of conspiracy to commit mail theft, one count of bank fraud.
Jennifer R. Harper, 34, Wichita, one count of conspiracy to commit bank fraud, one count of conspiracy to commit mail theft, one count of bank fraud and one count of aggravated identity theft.
Upon conviction, the crimes carry the following penalties:
Bank fraud, conspiracy to commit bank fraud: A maximum penalty of 30 years in federal prison and a fine up to $1 million.
Mail theft, conspiracy to commit mail theft: A maximum penalty of five years and a fine up to $250,000.
Unlawful possession of a firearm after a felony conviction: A maximum penalty of 10 years and a fine up to $250,000.
Unlawful possession of a firearm in furtherance of drug trafficking: Not less than five years and a fine up to $250,000.
Aggravated identity theft: A mandatory two years to run consecutive to any other sentence and a fine up to $250,000.
The U.S. Postal Inspection Service, the Sedgwick County Sheriff’s Office, the Wichita Police Department and the Derby Police Department investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Husband and Wife Plead Guilty to Tax Charges and Agree to Pay the IRS over $800,000 in TaxesRead the Press Release
DENVER – Sandra J. Zuckerman, age 66, of Woody Creek, Colorado, pled guilty today before U.S. District Court Judge Robert E. Blackburn to willful failure to pay income taxes, United States Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Judge Blackburn is scheduled to sentence Sandra Zuckerman on September 16, 2014. Sandra and her husband, Mathew Zuckerman, were indicted by a federal grand jury in Denver on April 25, 2012. Mathew Zuckerman pled guilty on February 18, 2014 and is scheduled to be sentenced by Judge Blackburn on July 31, 2014.
According to information contained in court documents, beginning in 1986 and continuing through 2009, the Zuckermans either failed to file an income tax return, or filed a return using incorrect amounts. From 2003 through 2009 no income tax returns were filed with the IRS.
Starting in 1998, Mathew Zuckerman and an associate became 50/50 business partners and began to specialize in taking small companies public through reverse mergers of existing corporate shells. To operate their new venture, himself and his business partner formed Silicon Valley New Issues, Inc. (SVNI). In addition, he formed Intermountain Marketing & Finance, Inc., a corporation he solely owned which owned 50% of SVNI. As part of the scheme, Mathew Zuckerman evaded corporate income taxes on several million dollars of taxable income in 1999 from Silicon Valley New Issues, Inc. Over the course of the next 10 years, he continued to conceal his assets and business affairs from the IRS by utilizing additional corporations and trusts in order to avoid payment and collection of the Zuckerman's outstanding tax liabilities.
Specifically, to avoid IRS liens, in 1999, the Zuckermans caused the deed to their Woody Creek residence, purchased for approximately $1.2 million, to be recorded in the name of Hyperpanel University, Inc. ("Hyperpanel"), a Nevada corporation that listed the names of a cat and a dog as its officers and directors on its filings with the Secretary of State. Similarly, in 2004 Mathew Zuckerman formed a company called Treya, Inc. in Nevada that they used to purchase a $1.8 million home in 2004 in Toluca Lake, California. Based on the directions of Mathew, Sandra used her name from an earlier marriage, Sandra Eberli, to be used in connection with transactions conducted by Treya.
Furthermore, in December of 2004, Mathew Zuckerman created the Mathew Mark Zuckerman Trust ("MMZT") and placed himself in the position as "Trustor" and his CPA was appointed as trustee. In July of 2006, he caused his daughter to be appointed as the trustee and in 2008 caused 4,900,000 shares of Green Earth Technologies (a company for which he served as Chairman) to be issued to the trust using an incorrect employer identification number ("EIN") for MMZT. Then he instructed his daughter to sell shares of the stock and transfer funds to his personal bank accounts. By doing this he received profits in excess of $500,000 while evading payments of taxes owed to the IRS.
Mathew Zuckerman agrees to pay the IRS $693,706 in restitution and Sandra agrees to pay $112,511 in restitution to the IRS.
Mathew Zuckerman pled guilty to one count of tax evasion, which carries a penalty of not more than 5 years in federal prison, and a fine of up to $250,000 per count. Sandra Zuckerman pled guilty to three counts of willful failure to pay income taxes, which carries a penalty of not more than 1 year in federal prison, and a fine of up to $100,000, per count.
This case was investigated by Internal Revenue Service – Criminal Investigation with assistance from the Special Enforcement Program of the Internal Revenue Service and prosecuted by Assistant U.S. Attorney Tim R. Neff.
Homestead Man Sentenced in $5 Million Identity Theft Tax Refund Check Cashing ScamRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Marcelin Jean Louis, 40, of Homestead, was sentenced to 60 months in prison, followed by three years of supervised release, after pleading guilty to one count of conspiracy to commit an offense against the United States, in violation of Title 18, United States Code, Section 371, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A, for a tax refund scheme that resulted in the cashing of approximately $5 million in fraudulent tax refund checks. The defendant was also ordered to pay $4.5 million in restitution.
According to the plea documents, from in or around March 2012, through in or around October 2012, Louis obtained U.S. Department of Treasury tax refund checks from various individuals, which checks had been fraudulently obtained. The defendant brought the fraudulently obtained U.S. Department of Treasury tax refund checks to a co-conspirator to be cashed. In total, during this period, Louis cashed thousands of these fraudulently obtained income tax refund checks (the total amount of tax refund checks cashed by Argo Check Cashing during this period totaled approximately $5MM). In order to cash the checks, Louis brought copies of fake driver’s licenses with the name of the individual on the tax refund check.
According to the plea documents, Louis knew that the checks had been obtained by fraud and – to compensate him for the risk of cashing fraudulent checks – he received approximately 20% of the value of the checks. The defendant admitted in a recording with the owner of the store that he knew that the checks had been obtained by fraud.
According to statements made at sentencing, Louis agreed to turn over six different houses, one vehicle, and other assets totaling nearly $1 million.
Mr. Ferrer commended the investigative efforts of IRS-CI and USSS. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
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.
Hartford Heroin Dealer Sentenced to 10 Years in PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RAIBWAR RAOUF, also known as “Camel,” of Hartford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 120 months of imprisonment, followed by five years of supervised release, for attempting to purchase three kilograms of heroin from an undercover officer.
According to court documents and statements made in court, the Drug Enforcement Administration received information that RAOUF was a significant distributor of heroin in the Hartford area, and that he was looking for a new source of heroin supply. On June 12, 2012, RAOUF traveled to a diner in the Bronx, New York, to meet with an undercover law enforcement officer who was posing as a large-scale heroin trafficker. RAOUF arranged to purchase three kilograms of heroin from the undercover officer for $55,000 per kilogram. RAOUF agreed to give the officer approximately $120,000 as a down payment at the time of the initial purchase, and would pay the balance of $45,000 within three days of the purchase.
On July 17, 2012, RAOUF and the undercover officer met at a diner in Stamford to further discuss the heroin transaction.
RAOUF and the undercover officer subsequently agreed to conduct the heroin transaction on July 31, 2012. On that date, RAOUF’s girlfriend, Lillian Compres, withdrew $120,000 from a safety deposit box at a bank in East Hartford and provided the money to RAOUF. RAOUF then packed the cash in two VCR cases and placed the VCR cases in the trunk of Compres’s car. RAOUF then drove his car to the diner in Stamford, and Compres followed RAOUF in her car.
RAOUF and Compres met the undercover officer at the diner but, after RAOUF and Compres feared there was police presence in the area, they and the undercover officer traveled a short distance north on Interstate 95 to a restaurant parking lot. RAOUF and Compres were arrested at that time.
RAOUF has been detained since his arrest. On July 1, 2013, he pleaded guilty to one count of attempting to possess with intent to distribute one kilogram or more of heroin.
Compres has pleaded guilty to a related charge and awaits sentencing.
RAOUF was ordered to forfeit $120,000 in U.S. currency that was seized from the trunk of Compres’ car, and an additional $58,000 in U.S. currency that was seized from the safety box held in Compres’ name.
This matter was investigated by the Drug Enforcement Administration with assistance from the Office of the Special Narcotics Prosecutor for the City of New York. The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Goodwin to Make Announcement in Major Investigation of Illegal Kickbacks at Logan County Mining OperationRead the Press Release
***MEDIA ADVISORY***
Media Advisory: TODAY - Goodwin to Make Announcement in Major Investigation of Illegal Kickbacks at Logan County Mining OperationCHARLESTON, W.Va. – U.S. Attorney Booth Goodwin, along with officials from the FBI, IRS, Postal Inspection Service, and West Virginia State Police, will announce developments in a major investigation of illegal kickbacks at a Logan County mining operation, TODAY, Friday, May 30, 2014, at 2:00 p.m., at the U.S. Attorney’s Office, Robert C. Byrd United States Courthouse, Fourth Floor, in Charleston. *** TV: Please arrive at courthouse by 1:30 p.m. to clear security and set up cameras. ***
WHO:
United States Attorney Booth Goodwin
Federal and state law enforcement officialsWHAT:
Announcement of developments in a major mining kickback investigation in Logan County.
WHERE:
U.S. Attorney’s Office
Robert C. Byrd United States Courthouse
Fourth Floor
300 Virginia St., E.
Charleston, WV
WHEN: Friday, May 30, 2014 at 2:00 p.m.Golden U.S. Postal Carrier Sentenced for Stealing MailRead the Press Release
DENVER – A U.S. Postal Service city carrier working in Golden, Colorado was sentenced yesterday by U.S. District Court Judge Robert E. Blackburn for theft of United States Mail by employee. The former Postal Service city carrier, John J. Bonney, age 37, of Westminster, Colorado was sentenced to serve 2 years probation. He resigned from his position, which he held for 15 years, during the course of the criminal investigation.
Bonney was indicted by a federal grand jury in Denver on November 5, 2013. He pled guilty before Judge Blackburn on January 16, 2014. He was sentenced on May 29, 2014.
According to the stipulated facts contained in the plea agreement, the U.S. Postal Service Office of Inspector General (USPS OIG) initiated an investigation after receiving a complaint from a Golden, Colorado resident that four envelopes that were deposited in a Postal Service collection box never reached their intended location. One of the envelopes contained a $100 gift card for Home Depot. The complainant determined the gift card was redeemed at a Home Depot in Westminster, CO. USPS OIG special agents went to the Westminster Home Depot, and after reviewing store surveillance video footage, identified a male wearing a Postal Service uniform as the individual who redeemed the gift card.
The individual in the photographs was later identified as Postal Service city carrier John Bonney. USPS OIG agents then determined Bonney was assigned to pick up mail from the collection box where the missing greeting card was placed on the day the envelopes were deposited. Investigators continued their investigation, including a test to see if Bonney stole mail he delivered. That investigation revealed that he did not. Additional investigation, including conducting video surveillance, revealed he placed certain pieces of mail he picked up in a personal blue duffle bag. He would then put that bag in his personal vehicle before returning his postal vehicle to the parking area.
When Bonney attempted to leave on the day of the video surveillance, USPS OIG special agents stopped him, identified themselves, and then placed him under arrest. Bonney gave consent for the USPS OIG agents to search his vehicle, where they found the blue duffle bag. After his arrest and subsequent subject interview, it was determined that Bonney started stealing mail in December of 2012.
“A long-time Postal Carrier can throw their career away, and become a federal felon, for stealing mail,” said U.S. Attorney John Walsh. “It is important that cards sent to celebrate holidays, provide a gift for a friend or relative, or compensate someone for work done, arrive at their intended destination. When they don’t, it is important to determine why, and hold those that have prevented it accountable.”
Executive Special Agent in Charge Pete Gately said, “The American public trusts the U.S. Postal Service to deliver their letters and parcels on time and intact. When an employee of the Postal Service violates that trust, as Mr. Bonney did, the U.S. Postal Service Office of Inspector General (USPS OIG) thoroughly investigates those matters. The USPS OIG and U.S. Attorney’s Office remain committed to holding anyone responsible for the theft of U.S. Mail accountable, as was demonstrated by the sentencing of Mr. Bonney. The public we serve can rest assured that the USPS OIG will continue to protect their mail and maintain America’s confidence in the integrity of the U.S. Postal Service.”
This case was investigated by the U.S. Postal Service Office of Inspector General, Office of Investigations.
This case was prosecuted by Special Assistant U.S. Attorney Kirsten Sinclair.
Four St. Cloud Felons Indicted for Possession of FirearmsRead the Press Release
MINNEAPOLIS — A federal grand jury has recently returned indictments charging four St. Cloud men with illegally possessing guns. On May 21, 2014, Darron Israel Shelton, Quontrell Martell Banner, and Kenneth Melvin Vinson were each charged with one count of being a Felon in Possession of a Firearm. That same day, through a separate indictment, Gregory Wimberly, Jr. was charged with two counts of being a Felon in Possession of a Firearm.
The first indictment alleges that on February 2, 2014, authorities found Shelton, Banner, and Vinson to be in possession of two guns, one C.G. Haenel .25 caliber pistol and a Bersa Thunder 9, 9 millimeter, semi-automatic pistol.
Shelton’s prior felony convictions include a drug offense, robbery, and assault. Banner has two prior robbery convictions and a drug conviction. Vinson’s prior felonies include assault, terroristic threats, and a drug conviction.
The second indictment alleges that on May 10, 2013, Wimberly was found to be in possession of a Kel-Tec 9 millimeter, semi-automatic pistol, and on March 7, 2014, he was allegedly found to be in possession of a Smith & Wesson 9 millimeter, semi-automatic pistol. Wimberly has a prior felony drug conviction.
Because the four defendants are convicted felons, they are prohibited under federal law from possessing firearms or ammunition at any time. Because of their extensive criminal history, Shelton and Banner each face a 15-year mandatory minimum sentence if convicted of the charges. Vinson and Wimberly each face a potential maximum sentence of 10 years in prison on each possession count. A federal district court judge will ultimately decide upon the appropriate sentences.
United States Attorney Andrew Luger stated that, “Our Office is working closely with law enforcement in the St. Cloud area to prosecute violent felons who are illegally possessing weapons. These cases are a significant step forward in that effort.”
These cases are the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Cloud Police Department, the Waite Park Police Department, and the Central Minnesota Violent Offenders Task Force. They are being prosecuted by Assistant United States Attorneys Amber M. Brennan and Richard A. Newberry.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Former Usps Employee Sentenced to 42 Months in Federal Prison for Bribery, Fraud and Tax OffensesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Tom Frost, Special Agent in Charge of the United States Postal Service Office of Inspector General, Major Fraud Investigations Division, announced that former U.S. Postal Service employee ROBERT GIULIETTI, 57, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 42 months of imprisonment, followed by three years of supervised release, for bribery, fraud and tax offenses.
According to court documents and statements made in court, GIULIETTI was a Facilities Project Manager for the U.S. Postal Service (USPS) at the USPS Northeast Facilities Office in Windsor, Conn. GIULIETTI’s duties included recommending and selecting facilities improvement contractors, reviewing and approving bids received from those contractors for USPS work, certifying the completion of work by contractors and approving payment authorizations. GIULIETTI has admitted that he accepted approximately $89,000 from two contractors to direct inflated USPS facilities construction contracts to them.
Also, in approximately September 2009, GIULIETTI formed MGC LLC to do business with the USPS on projects on which he worked. MGC was owned in name by GIULIETTI’s wife, and its business address was his home address in Cheshire. Operating MGC from his USPS office in Windsor, GIULIETTI used his position to direct USPS contracts to MGC, to approve MGC’s work and to authorize payment to MGC for work. After GIULIETTI directed USPS contracts to MGC, he engaged other contractors to perform the actual work involved with each project. GIULIETTI generated almost a million dollars in profit by having MGC charge USPS more than MGC had to pay the contractors who performed the actual work.
Between November 2009 and November 2011, GIULIETTI directed more than 150 USPS facility projects to MGC, causing a loss to the USPS of approximately $982,064.68.
GIULIETTI also filed false federal income tax returns for the 2008 through 2011 tax years by fraudulently deducting payments from MGC to members of his family, and by not reporting the corrupt payments that he received.
“The prosecution of corrupt public employees is a top priority of this Office,” stated U.S. Attorney Daly. “This defendant not only accepted bribes and defrauded the U.S. Postal Service of nearly a million dollars, but he cheated on his taxes, as well. It is intolerable criminal conduct. I commend the USPS Office of Inspector General, the Connecticut FBI and IRS-Criminal Investigation for their excellent work in this investigation, which included the seizure of significant assets.”
“The priority mission of the USPS-OIG Major Fraud Investigations Division is to protect the integrity and improve the economy of the U.S. Postal Service through vigorous investigation of schemes designed to defraud it,” stated Special Agent in Charge Frost. “Mr. Giulietti put the desire for his own personal enrichment ahead of his duty when he betrayed his position of trust and defrauded the U.S. Postal Service. His sentencing today is the inevitable outcome of his actions.”
GIULIETTI was arrested on December 13, 2012. On February 7, 2014, he pleaded guilty to one count of bribery of a public official, one count of wire fraud and one count of filing a false tax return.
As part of his sentence, GIULIETTI is required to pay restitution in the amount of $882,064.68, and back taxes penalties and interest in the amount of $291,026.82. Judge Underhill ordered the forfeiture of a residence GIULIETTI owns on South Pond Circle in Cheshire, a 2012 Chevrolet Equinox, and approximately $740,000 that was seized from bank accounts.
GIULIETTI was ordered to report to prison on July 23, 2014.
This ongoing investigation is being conducted by the U.S. Postal Service, Office of Inspector General, the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorneys Jonathan Francis and Eric Glover.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Postmaster Sentenced for Stealing Postal Service FundsRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Donna Spencer, 51, of Falconer, N.Y., who was convicted of misappropriation of postal funds by a postal service employee, was sentenced to two-years probation by Chief Judge William M. Skretny. The defendant was also ordered to pay restitution in the amount of $14,023.50 to the U.S. Postal Service.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the case, stated that Spencer was employed by the United States Postal Service since 1986. Between February 13, 1999, and July 19, 2013, the defendant was employed as the Postmaster at the Frewsburg, N.Y. Post Office. During that time, Spencer accepted cash payments from USPS customers for the purchase of postage stamps. Instead of depositing the cash payments into the USPS register, the defendant kept the cash for her own purposes. An audit of the Frewsburg facility determined that the total loss amount was $14,023.50.The plea is the culmination of an investigation by the United States Postal Inspection Service, under the direction of Acting Inspector in Charge Shelly A. Binkowski of the Boston Division.
Former Newton Doctor Sentenced to 5 Years in Prison for Prescribing Controlled Substances Outside the Course of Usual Medical Practice and Related Health Care FraudRead the Press Release
DES MOINES, IA – On Thursday, May 29, 2014, Dr. Lafayette James Twyner, age 65, of Newton, Iowa, was sentenced to 5 years in prison by U.S. District Court Judge Stephanie M. Rose on charges relating to his alleged unlawful dissemination of controlled substances to patients, announced United States Attorney Nicholas A. Klinefeldt.
“Neither state nor federal authorities in Southern Iowa will turn a blind eye to health care professionals who criminally abuse their authority to prescribe controlled substances and bill insurance companies,” explained U.S. Attorney Nicholas Klinefeldt. “The safety of the community is our top priority.”
Dr. Twyner had previously pled guilty on February 21, 2014 to federal charges of illegally dispensing hydrocodone resulting in death, and health care fraud. Over the course of several years, Dr. Twyner prescribed various controlled substances, mostly pain medications, to patients who had no legitimate need for them, and to some who were admittedly addicted to them. He then billed the patients - and their insurance companies - for the office visits when they sought drugs from him.
Judge Rose accepted the terms of a plea agreement between the U.S. Attorney’s Office and Dr. Twyner, which also called for Dr. Twyner to serve three years of home confinement after he is released from the custody of the U.S. Bureau of Prisons. The Court based its decision to accept the agreement, in part, on Dr. Twyner’s extraordinary acceptance of responsibility for his actions, which he demonstrated by surrendering his registration to prescribe controlled substances and his medical license while the investigation was ongoing, but before he was charged.
A search warrant was executed on Tuesday, April 5, 2011, at the location of Urgent Care Clinic in Newton, where Dr. Twyner formerly practiced medicine. Records of the Iowa Board of Pharmacy show Dr. Twyner voluntarily surrendered his registration to prescribe controlled substances on April 12, 2011, which was accepted by the Iowa Board of Pharmacy on April 27, 2011. Urgent Care closed one month later, on May 27, 2011. After being charged with unprofessional conduct in January 2012 by the Iowa Board of Medicine related to his dispensing of controlled substances, Dr. Twyner entered in a settlement agreement on July 12, 2012, with the Iowa Board of Medicine in which he agreed to voluntarily surrender his Iowa medical license, and pay a $10,000 fine.
The United States Drug Enforcement Administration (DEA) regulates the distribution of highly-addictive, or controlled, substances. Its regulatory system classifies substances based on their potential for abuse and dependence, their accepted medical use, and their safety for use under medical supervision. Schedule I contains the most dangerous, addictive, and restricted drugs, with Schedule V containing the least, though still dangerous, of the substances in the hierarchical scheme.
Doctors, pharmacists, and other health care professionals with DEA registrations can lawfully dispense controlled substances if they are doing so in the usual course of their professional practices and for a legitimate medical purpose, but act unlawfully when they do things such as knowingly issuing a prescription to someone who is abusing or diverting a drug, like Dr. Twyner.
The case was investigated by the United States Department of Health and Human Services, Office of Inspector General, the United States Drug Enforcement Administration, the Federal Bureau of Investigation, the Jasper County Sheriff's Department, the Newton Police Department, and the Mid-Iowa Narcotics Enforcement Task Force. The case was prosecuted by the United States Attorney's Office for the Southern District of Iowa.
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Former Grandville Man Pleads Guilty to Filing A False Tax ReturnRead the Press Release
GRAND RAPIDS, MICHIGAN – Jeffrey Richter, formerly of Grandville, Michigan, pleaded guilty to filing a false federal income tax return for 2007, U.S. Attorney Patrick J. Miles, Jr. announced today. U.S. Attorney Miles was joined in the announcement by Acting Special Agent in Charge Carolyn Weber, Internal Revenue Service Criminal Investigation Division.
According to court records, during 2007 through 2011 tax years, Richter failed to accurately report all of his income. During 2007, Richter underreported his income by more than $253,000. In total for the years 2007 through 2011, Richter underreported his income by $995,436.07. In addition, Richter failed to pay approximately $372,000 in tax due and owing to the Internal Revenue Service.
Richter entered the guilty plea in U.S. District Court in Grand Rapids before Judge Robert Holmes Bell. Judge Bell scheduled a sentencing hearing for September 10, 2014. Richter faces up to three years in prison, restitution of the tax due and owing, and a fine of not more than $250,000.
The case was investigated by special agents of the Internal Revenue Service Criminal Investigation, and prosecuted by Assistant U.S. Attorney B. Rene Shekmer.
END
Former District of Columbia Government Employee Pleads Guilty to Stealing over $114,000 from Citizen’s Bank AccountDefendant Gained Access to Bank Information While Working at the D.C. Office of Tax and RevenueRead the Press Release
WASHINGTON - Catyondia Ballard, 48, a former employee of the District of Columbia Office of Tax and Revenue, pled guilty today to a federal charge stemming from her theft of over $114,000 from the bank account of a retired military member, announced U.S. Attorney Ronald C. Machen Jr. and Blanche L. Bruce, Interim Inspector General for the District of Columbia.
Ballard, of Bowie, Md., pled guilty in the U.S. District Court for the District of Columbia to one count of wire fraud. The Honorable Judge Rudolph Contreras scheduled sentencing for Aug. 22, 2014. Under federal sentencing guidelines, Ballard faces a likely range of 15 to 21 months of incarceration, as well as a fine of up to $40,000. Under the plea agreement, Ballard also must pay restitution to the victim. The government maintains that the victim’s losses total, at least, $114,166. Finally, Ballard is subject to an additional forfeiture money judgment.
According to the government’s evidence, Ballard became familiar with the victim through her job at the District of Columbia Office of Tax and Revenue. While there, Ballard gained access to the victim’s personal biographical information, as well as the victim’s bank account information. Using the victim’s information, Ballard began wiring funds from the victim’s bank account directly to Ballard’s account at a loan servicing company in order to pay off Ballard’s mortgage. From March 2007 through April 2010, Ballard directed a total of $114,166 of the victim’s funds to Ballard’s account without the victim’s permission.
In announcing the plea, U.S. Attorney Machen and Interim Inspector General Bruce commended the work of those who investigated the case from the District of Columbia’s Office of the Inspector General. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Donna Galindo, Corinne Kleinman, and Angela Lawrence; and Assistant U.S. Attorney Richard DiZinno, who investigated and prosecuted the matter.
14-128Former Anderson, California, Police Officer <br /> Pleads Guilty to Civil Rights Offense<br /> for Sexually Assaulting WomanRead the Press Release
Former Anderson, California, Police Officer Bryan Robert Benson pleaded guilty today in federal court to a civil rights offense for sexually assaulting a woman while transporting her to jail, announced the Justice Department and the U.S. Attorney’s Office for the Eastern District of California.
Benson, 29, pleaded guilty to one felony count of deprivation of rights under color of law. According to the factual basis in a plea agreement filed with the court today, Benson transported the victim, to the Shasta County Jail after she was arrested for driving under the influence on May 29, 2010. Before arriving at the jail, Benson pulled into a parking lot. There, he falsely reported by police radio to dispatch that he had arrived at the jail when, in fact, he had not. Benson got out of the car, opened the passenger side door of the car, removed the victim from the passenger seat, and led her to the back of the police car. Benson pulled down the victim’s shorts and underwear and engaged in intercourse with her against the police car without her consent. The offense resulted in bodily injury to the victim, including physical pain and bruising.
Sentencing is scheduled for Aug. 15, 2014. Benson and the government agreed in the plea agreement that the Court should sentence Benson to five years in prison. Benson also faces a fine of up to $250,000.
“In sexually assaulting a woman in his custody, the defendant betrayed his oath to uphold the law, violated the trust placed in him by society, and, most regrettably, caused untold harm to the victim,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The department will continue to hold such offenders accountable.”
“Members of the public have a right and an expectation that they can look to the police for help and safety,” said U.S. Attorney Benjamin B. Wagner for the Eastern District of California.. “When a police officer abuses that trust for his own criminal purposes, he violates his duty to protect the public, undermines the effectiveness of his fellow officers, and subverts the rule of law.”This case is being investigated by the Federal Bureau of Investigation. The case is being prosecuted by Trial Attorney Chiraag Bains from the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Matthew G. Morris for the Eastern District of California.
Final Member of Massive Prescription Drug Conspiracy Sentenced to 151 Months in PrisonRead the Press Release
Defendant is last of 38 defendants to be sentenced
COVINGTON – The final member of a large prescription drug ring that illegally distributed approximately 80,000 prescription pills in Northern Kentucky and Southern Ohio, was sentenced to 151 months in federal prison.
U.S. District Judge Amul Thapar sentenced 34 year-old Nick Sandlin, of Cincinnati, on Thursday and placed him on lifetime supervised release. Sandlin must serve at least 85 percent of his prison sentence. Sandlin is the last of 38 defendants involved in this conspiracy to be sentenced.
According to court records, from December of 2011 through February of 2013, Sandlin admitted to conspiring with others to distribute oxycodone. Specifically, Sandlin organized trips to pain clinics in Florida, where several of his co-defendants obtained prescriptions for large quantities of oxycodone. The group then typically traveled to various locations in Florida, Pennsylvania, Missouri, and Kansas to fill the prescriptions. Sandlin and others paid medical and travel expenses in exchange for the bulk of the oxycodone pills prescribed to each patient. Sandlin made approximately 13 trips to Florida to obtain oxycodone and admitted to distributing over 5,000 tablets. Sandlin acknowledged that he took part in a smaller conspiracy to distribute marijuana during this time as well.
This was the final sentencing in a prosecution that resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation, termed Operation Family Vacation.
All 38 members of the conspiracy have been convicted and sentenced. The ringleaders of the group, Damon and John Helton, received sentences of 360 and 270 months in prison, respectively, for engaging in a continuing criminal enterprise. Sentences for other members of the conspiracy ranged from 168 months to 30 months. Several members of the conspiracy were also convicted of money laundering. The average sentence was over 96 months. This investigation resulted in the forfeiture of five motor vehicles, 25 firearms, 12 pieces of real estate, and approximately $110,000.00 in currency.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, James V. Allen, Acting Special Agent in Charge, Detroit Field Division, Drug Enforcement Administration, and Kathy A. Enstrom, Special Agent in Charge, Cincinnati Field Office, Internal Revenue Service - Criminal Investigation, jointly announced the sentence.
The investigation was conducted by the Drug Enforcement Administration, the Internal Revenue Service, the Northern Kentucky Drug Strike Force, the Covington Police Department, and the Norwood Police Department. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorneys Tony Bracke and Wade Napier.
Final Member of Massive Prescription Drug Conspiracy Sentenced to 151 Months in PrisonRead the Press Release
Defendant is last of 38 defendants to be sentenced
COVINGTON, KY -The final member of a large prescription drug ring that illegally distributed approximately 80,000 prescription pills in Northern Kentucky and Southern Ohio, was sentenced to 151 months in federal prison.
U.S. District Judge Amul Thapar sentenced 34 year-old Nick Sandlin, of Cincinnati, on Thursday and placed him on lifetime supervised release. Sandlin must serve at least 85 percent of his prison sentence. Sandlin is the last of 38 defendants involved in this conspiracy to be sentenced.
According to court records, from December of 2011 through February of 2013, Sandlin admitted to conspiring with others to distribute oxycodone. Specifically, Sandlin organized trips to pain clinics in Florida, where several of his co-defendants obtained prescriptions for large quantities of oxycodone. The group then typically traveled to various locations in Florida, Pennsylvania, Missouri, and Kansas to fill the prescriptions. Sandlin and others paid medical and travel expenses in exchange for the bulk of the oxycodone pills prescribed to each patient. Sandlin made approximately 13 trips to Florida to obtain oxycodone and admitted to distributing over 5,000 tablets. Sandlin acknowledged that he took part in a smaller conspiracy to distribute marijuana during this time as well.
This was the final sentencing in a prosecution that resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation, termed Operation Family Vacation.
All 38 members of the conspiracy have been convicted and sentenced. The ringleaders of the group, Damon and John Helton, received sentences of 360 and 270 months in prison, respectively, for engaging in a continuing criminal enterprise. Sentences for other members of the conspiracy ranged from 168 months to 30 months. Several members of the conspiracy were also convicted of money laundering. The average sentence was over 96 months. This investigation resulted in the forfeiture of five motor vehicles, 25 firearms, 12 pieces of real estate, and approximately $110,000.00 in currency.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, James V. Allen, Acting Special Agent in Charge, Detroit Field Division, Drug Enforcement Administration, and Kathy A. Enstrom, Special Agent in Charge, Cincinnati Field Office, Internal Revenue Service - Criminal Investigation, jointly announced the sentence.
The investigation was conducted by the Drug Enforcement Administration, the Internal Revenue Service, the Northern Kentucky Drug Strike Force, the Covington Police Department, and the Norwood Police Department. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorneys Tony Bracke and Wade Napier.
Federal Inmate Sentenced to Life in Prison for the Murder of a U.S. Correctional OfficerRead the Press Release
WASHINGTON – Federal inmate James Ninete Leon Guerrero, 48, of Guam, was sentenced today to serve life in prison for the murder of United States Correctional Officer Jose Rivera, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Benjamin Wagner of the Eastern District of California. Guerrero was sentenced by U.S. District Judge Phillip Pro of the District of Nevada.
According to court documents, Guerrero aided and abetted co-defendant Jose Cabrera Sablan in the stabbing death of Officer Rivera. On June 20, 2008, as Officer Rivera was on duty and conducting his daily count in the United States Penitentiary in Atwater, California, Sablan attacked him with an eight-inch homemade shank. Officer Rivera tried to flee, but was knocked backwards by Sablan and tackled by Guerrero. Guerrero held Rivera down as Sablan stabbed him with the shank in excess of 20 times. Officer Rivera was 22 years old at the time of his death and was a United States Navy veteran.
Sablan and Guerrero were indicted for murder on Aug. 14, 2008. Sablan’s case is set for trial on April 6, 2015, and the government will be seeking the death penalty if he is convicted.
The charges against Sablan are merely accusations and he is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The investigation was conducted by the Bureau of Prisons and the FBI. The case is being prosecuted by Trial Attorney Bonnie Hannan of the Capital Case Section of the Criminal Division and Assistant U.S. Attorney Duce Rice of the Eastern District of California.
Downtown Pittsburgh Jeweler Admits Failing to File Required IRS FormRead the Press Release
PITTSBURGH - A Pittsburgh jeweler pleaded guilty in federal court to a charge of failing to file a report of currency received by a non-financial business, United States Attorney David J. Hickton announced today.
Efraim Tuti, 42, of Pittsburgh, Pa., pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that on July 7, 2011, Tuti, who was engaged in the jewelry business known as 2T Jewelers on Fifth Avenue in Pittsburgh, for the purpose of evading federal reporting requirements, failed to file an Internal Revenue Service Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, following the receipt of approximately $11,000 in currency as partial payment for a diamond ring purchased by an undercover IRS agent for a total of $22,000. Tuti acknowledged during the plea hearing that he also sold a $13,000 pair of earrings to the undercover agent, after which he failed to file the IRS Form 8300, as required. On Feb. 22, 2013, $125,070 was seized by the IRS during the execution of a search warrant at 2T Jewelers. Tuti agreed to forfeit the money to the United States as part of his entry of a guilty plea.
Judge Schwab scheduled sentencing for Sept. 29, 2014, at 9 a.m. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Pending sentencing, the court released Tuti on a $25,000, unsecured bond.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Internal Revenue Service - Criminal Investigation conducted the investigation that led to the prosecution of Efraim Tuti.
District Man Sentenced to 19 Years in Prison for Sexually Assaulting Stepdaughter-Defendant Bound, Gagged and Assaulted Victim-Read the Press Release
WASHINGTON – A 39-year-old man from Washington, D.C. was sentenced today to 19 years in prison on a charge that stemmed from the physical attack and subsequent sexual abuse of his wife’s 14-year-old daughter, U.S. Attorney Ronald C. Machen Jr. announced.
The defendant, who is not named here to protect the privacy of the victim, pled guilty in April 2014 in the Superior Court of the District of Columbia to one count of first-degree sexual abuse. He was sentenced by the Honorable Rhonda Reid Winston. In addition to the prison term, the defendant will be required to register as a sex offender for the rest of his life.
According to the government’s evidence, the defendant had been married to the victim’s mother for approximately two years and lived with the family in Southeast Washington. The victim referred to him as “Dad.” On March 14, 2014, while the victim’s mother and young siblings were out of the house, the defendant called her into a bedroom, where he bound, gagged and sexually assaulted her. When the defendant eventually let her go, the victim immediately texted her mother and begged her to come home. The child immediately disclosed the assault to her mother upon her arrival, and was taken to Children’s National Medical Center for treatment.
Judge Reid Winston referred to the defendant’s actions as “horrendous,” and found that he is a danger not only to his wife’s children, but also to other children in the community.
In announcing the sentence, U.S. Attorney Machen commended the work of the Metropolitan Police Department. He also acknowledged the outstanding work of the Children=s Advocacy Center, and the Children’s National Medical Center, which provided critical services to the victim. He praised the efforts of those who handled the case at the U.S. Attorney’s Office, including Victim/Witness Advocate Veronica Vaughan. Finally, he acknowledged the efforts of Assistant U.S. Attorney Heide L. Herrmann, who prosecuted the matter.
14-127Defendant in “Operation Open Market” Sentenced for Committing New Financial Fraud Crimes While in Halfway HouseRead the Press Release
LAS VEGAS, Nev. – A defendant sentenced last week to over five years in prison in an online identity theft and credit card trafficking case, “Operation Open Market,” has been sentenced in a separate case to two more years in prison for committing identity theft and financial fraud crimes while he was in a Las Vegas halfway house, announced Daniel G. Bogden, United States Attorney for the District of Nevada, Acting Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and Special Agent in Charge Claude Arnold of Homeland Security Investigations (HSI) in Los Angeles.
“Some defendants never learn,” said U.S. Attorney Bogden. “Lofton thought he could get away with continuing his criminal operation in the halfway house, but thanks to sophisticated law enforcement efforts, he will now be serving two more years in prison.”
Michael Lofton, aka “Killit” and “Lofeazy”, 36, of Las Vegas, was sentenced on May 28, 2014, by U.S. District Judge James C. Mahan to 24 months in prison, to run consecutively to the 63 months sentence of imprisonment he received on May 22, 2014. Lofton pleaded guilty in January to one count of aggravated identity theft, and admitted that he conspired with others to unlawfully use and traffic in access devices, such as debit and credit cards. Specifically, on Dec. 30, 2012, Lofton fraudulently obtained an iPad, iPad docking station, iPad case, and Kindle Fire HD by using an unauthorized credit account number. Lofton committed the crime while he was residing in a halfway house in Las Vegas awaiting trial in the Operation Open Market case.
In Operation Open Market, Lofton pleaded guilty to participating in a racketeer influenced corrupt organization, Carder.su, which trafficked in compromised credit card account data and counterfeit identifications, and committed money laundering, narcotics trafficking, and various types of computer crime. Fifty-six persons were charged in four separate indictments in Operation Open Market.
The cases were investigated by HSI and the U.S. Secret Service, and are being prosecuted by Assistant U.S. Attorneys Kimberly M. Frayn and Andrew W. Duncan, and Trial Attorney Jonathan Ophardt of the U.S. Department of Justice Organized Crime and Gang Section.
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. 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. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Davie Man Pleads Guilty in Large-Dollar Fraudulent Refund Scam Involving $22 Million in ClaimsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigations (FBI), Miami Field Office, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Freddie Howard, 56, of Davie, pled guilty for his role in a large-dollar tax refund fraud scam. Sentencing for Howard is scheduled for August 29, 2014 at 10:15 a.m.
Howard pled guilty to one count of mail fraud, in violation of Title 18, United States Code, Section 1341. At sentencing, the defendant faces a maximum term of 22 years in prison.
According to the plea documents, Howard operated a tax preparation business called QTS1, Inc. (Quality Tax Service) in Broward County. Howard prepared false and fraudulent tax returns using the identity information of willing participants, as well as, stolen identity information. Howard used false and fictitious income and withholding tax information on the returns submitted to the IRS to justify fraudulent large-dollar refund requests. The requested refund amounts generally ranged from $60,000 to $1,400,000, and Howard typically requested payment of these refunds via U.S. Treasury tax refund check. To conceal his identity, Howard submitted the tax returns to the IRS by mail and did not include preparer information. Howard also blocked out the tax preparer software information, and used other people to contact the IRS to inquire about the status of the fraudulent returns.
According to the plea documents, Freddie Howard submitted over $22 million in false and fraudulent large-dollar refund claims to the IRS that resulted in a payout of approximately $4.5 million on these large-dollar refund requests. As part of the scam, Howard caused a false and fraudulent tax return in the name of “J.E.” to be submitted to the IRS that resulted in a U.S. Treasury tax refund check sent to “J.E.” in Coral Springs for $398,502.52.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
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.
DEA Employee and Contractor Husband Plead Guilty to<br /> False Statements in Kidnapping HoaxRead the Press Release
Nydia L. Perez and John A. Soto, both 44, of Haymarket, Virginia, pleaded guilty to one count of making false statements to law enforcement officials in federal court on Friday, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Assistant Director for International Operations John Boles of the FBI.
According to the plea agreement, in December 2013, Perez, an employee of the Drug Enforcement Administration, and her husband Soto, a private contractor in the United States Embassy in Bogotá, Colombia, designed and executed a hoax with the intention of defrauding the United States Embassy in Bogotá. As part of the hoax, Perez and Soto fabricated a plot to kidnap minors who are United States citizens.
According to court filings, Perez and Soto sent, through electronic mail and courier services, information about a purported threat to the safety of minor United States citizens in Bogotá. Perez and Soto added detailed descriptions of the targeted United States citizens, including information about their whereabouts and daily routines. Perez and Soto included photographs of the citizens in order to enhance the seriousness of the threat, and attempted to implicate innocent individuals in the kidnapping plot. Perez and Soto made numerous false representations to law enforcement and security officials in furtherance of the fabricated kidnapping plot.
Sentencing before U.S. District Judge Amy Berman-Jackson is scheduled for Aug. 21, 2014.
The investigation was conducted by the FBI Legal Attaché in Bogotá and the Extra-Territorial Squad of the FBI Miami Field Office. Also participating in the investigation were the DEA, the U.S. Embassy Bogota Regional Security Office, and the U.S. Embassy Bogota Force Protection Detail. The Department is grateful for the assistance of the Colombia National Police Directorate of Anti-Kidnapping and Anti-Extortion.
The case is being prosecuted by Trial Attorney Justin Weitz of the Criminal Division’s Public Integrity Section.Correctional Officer Pleads Guilty in Baltimore Jail Racketeering ConspiracyRead the Press Release
Fourteenth Officer Pleads Guilty
Baltimore, Maryland - Correctional officer Sean Graves, age 48, of Windsor Mill, Maryland, pleaded guilty today to participating in a racketeering conspiracy arising from the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC).
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; 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.
Graves, a correctional officer at BCDC, admitted that he smuggled contraband into the jail from 2011 to 2013. Graves smuggled in marijuana, tobacco and other contraband on behalf of BGF leader Tavon White. Graves smuggled drugs such as Percocet and marijuana into BCDC for distribution by BGF inmates, and acted in concert with other correctional officers.
Graves faces a maximum sentence of 20 years in prison for the racketeering conspiracy. U.S. District Judge Ellen L. Hollander scheduled sentencing for September 12, 2014 at noon.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.Co-Leader of International Sex Trafficking Organization Sentenced in Manhattan Federal Court to Life in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that BONIFACIO FLORES-MENDEZ, 34, of Queens, New York, was sentenced today in Manhattan federal court to life in prison in connection with his co-leadership, along with his brother Isaias Flores-Mendez, of a long-running sex trafficking conspiracy that employed force, fraud, and coercion to make young women work as prostitutes against their will. FLORES-MENDEZ was also ordered to forfeit approximately $1.7 million, and to pay $84,000 in restitution to a victim of his crime. He was sentenced by U.S. District Judge Katherine B. Forrest.
Manhattan U.S. Attorney Preet Bharara said: “Bonifacio Flores-Mendez waged a decade-long campaign of terrorizing women, coercing them into prostitution, assaulting them, even attempting to run a victim over in his car and threatening the health of her infant child. He has no doubt caused his victims grave physical and psychological harm. The long prison sentence he has received today cannot undo that harm, but it will ensure that Bonifacio Flores-Mendez does not prey on more women or children.”
In sentencing BONIFACIO FLORES-MENDEZ, Judge Forrest said: “We have to refuse to be a people who will allow such conduct to go unpunished, and the punishment must be severe. On those mornings when the victims woke up – perhaps under a table, perhaps in a windowless room, perhaps in a basement – they may have wondered whether one day the nightmare would end and that somehow justice would be done. Today, in holding you responsible for your crimes, some justice is done.”
According to the Indictment, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including today’s sentencing:
Since at least 2001, when he was first arrested for promoting prostitution, BONIFACIO FLORES-MENDEZ, a Mexican national, has been engaged in the business of sexually exploiting vulnerable women for his own financial gain.
BONIFACIO FLORES-MENDEZ played an active role in the trafficking of at least one young woman (“Victim-1”), who was forced to engage in prostitution against her will by Isaias Flores-Mendez. At the age of 17, Victim-1 was romanced by Isaias Flores-Mendez and lured to the U.S. with the promise of a better life for her and her baby. BONIFACIO FLORES-MENDEZ and Isaias Flores-Mendez arranged for Victim-1 to travel to New York, where she was met by BONIFACIO FLORES-MENDEZ. Once in New York, BONIFACIO FLORES-MENDEZ made Victim-1 sleep on a floor with her child without any blankets. BONIFACIO FLORES-MENDEZ later locked Victim-1 in a windowless basement and deprived her and her child of sufficient food. Victim-1 was then forced to work as a prostitute against her will. When Victim-1 attempted to resist, Isaias Flores-Mendez repeatedly beat and verbally abused her. After she escaped, BONIFACIO FLORES-MENDEZ and his brother continued to torment Victim-1, on one occasion trying to run her over with their car.
BONIFACIO FLORES-MENDEZ also caused at least one other woman (“Victim-A”) to work for him as a prostitute, and on at least one occasion, BONIFACIO FLORES-MENDEZ beat Victim-A.
In addition to his role in the direct sex trafficking of women by force, fraud, and coercion, BONIFACIO FLORES-MENDEZ, together with his brother Isaias Flores-Mendez, also owned and operated a sprawling network of brothels in and around New York City that sexually exploited at least five women per day, each of whom saw up to 20 customers per day. Many of the victims of this sex trafficking-prostitution enterprise were forced to engage in prostitution against their will under abhorrent conditions.
The Indictment filed on May 23, 2013 charged 17 defendants. Sixteen of those defendants, including BONIFACIO FLORES-MENDEZ, have pled guilty, and one has entered into a deferred prosecution agreement. The defendants who have pled to date have agreed to forfeit, in total, more than $1.7 million. The following defendants have pled guilty, and have been sentenced as described below:
- Carlos Garcia-De La Rosa pled guilty to conspiring to engage in a sex trafficking-prostitution enterprise and possession of child pornography on January 9, 2014, and was sentenced on May 29, 2014, to 48 months in prison.
- Pedro Degante-Galeno pled guilty to conspiring to engage in a sex trafficking-prostitution enterprise on November 13, 2013, and was sentenced on May 16, 2014, to the statutory maximum term of 60 months in prison to be followed by two years of supervised release.
- Isaias Flores-Mendez pled guilty to conspiring to engage in sex trafficking by force, fraud, and coercion on January 7, 2014, and was sentenced on May 14, 2014, to life in prison.
- Sergio Degante-Ortiz pled guilty to conspiring to engage in a sex trafficking-prostitution enterprise on January 6, 2014, and was sentenced on May 8, 2014, to time served and one year of supervised release.
- Valentin Jiamez-Dolores pled guilty to conspiring to engage in a sex trafficking-prostitution enterprise on December 10, 2013, and was sentenced on April 25, 2014, to the statutory maximum term of 60 months in prison to be followed by two years of supervised release.
- Mario Pedro Martinez-Barrera pled guilty to conspiring to engage in a sex trafficking-prostitution enterprise on December 12, 2013, and was sentenced on April 25, 2014, to 33 months in prison to be followed by two years of supervised release.
- Javier Leon-Chavez pled guilty to conspiring to engage in a sex trafficking-prostitution enterprise on December 18, 2013, and was sentenced on April 11, 2014, to 48 months in prison to be followed by two years of supervised release.
- Alberto Jesus Martinez-Miranda pled guilty to conspiring to engage in a sex trafficking-prostitution enterprise on October 29, 2013, and was sentenced on April 9, 2014, to the statutory maximum term of 60 months in prison and two years of supervised release.
- Miguel Angel Che-Veliz pled guilty to obstructing justice on January 22, 2014, and was sentenced on April 4, 2014, to time served.
- Isidro Degante-Galeno pled guilty to conspiring to engage in a sex trafficking-prostitution enterprise on December 3, 2013, and was sentenced on April 1, 2014, to the statutory maximum term of 60 months in prison followed by three years of supervised release.
- Alejandro Degante-Galeno pled guilty to conspiring to engage in a sex trafficking-prostitution enterprise on October 24, 2013, and was sentenced on March 6, 2014, to the statutory maximum term of 60 months in prison followed by two years of supervised release.
- Manuel Gomez-Batana pled guilty to conspiring to engage in a sex trafficking-prostitution enterprise on September 25, 2013, and was sentenced on February 20, 2014, to the statutory maximum term of 60 months in prison to be followed by two years of supervised release.
- Margarito Degante pled guilty to conspiring to engage in a sex trafficking-prostitution enterprise on October 29, 2013, and was sentenced on February 14, 2014, to the statutory maximum term of 60 months in prison followed by two years of supervised release.
- Marcos Mendez Perez pled guilty to conspiring to engage in a sex trafficking-prostitution enterprise on October 10, 2013, and was sentenced on January 31, 2014, to the statutory maximum term of 60 months in prison to be followed by three years of supervised release.
- Francisco Mendez Ramirez pled guilty to conspiring to engage in a sex trafficking-prostitution enterprise on October 21, 2013, and was sentenced on January 31, 2014, to the statutory maximum term of 60 months in prison to be followed by three years of supervised release.
Mr. Bharara praised the outstanding investigative work of the Department of Homeland Security, Homeland Security Investigations.
This prosecution of this case is being overseen by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Amanda Kramer and Rebecca Mermelstein are in charge of the prosecution.
Cheswick Man Sentenced to 12+ Years in Prison for Receiving, Possessing Child PornographyRead the Press Release
PITTSBURGH - A Cheswick resident has been sentenced in federal court to 151 months imprisonment to be followed by lifetime supervised release on his conviction of receipt and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States Chief District Judge Joy Flowers Conti imposed the sentence on Mark Philip Campbell, 49.
According to information presented to the Court, from on or about Feb. 27, 2013, to on or about Sept. 15, 2013, Campbell received images and a video containing material depicting the sexual exploitation of minors. In addition, from on or about Feb. 27, 2013, to on or about Oct. 24, 2013, Campbell knowingly possessed images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age. Campbell also admitted to sexual contact with a female minor over a five-year period.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Pennsylvania State Police and the Allegheny County District Attorney’s Office for the investigation leading to the successful prosecution of Campbell.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Chester County Lawyer and Client Charged with Bankruptcy FraudRead the Press Release
PHILADELPHIA – Indictments were filed yesterday charging a Pennsylvania attorney and his client in a bankruptcy fraud scheme, announced United States Attorney Zane David Memeger. Pietro A. Barbieri, esq., 61, of Exton, PA, was retained by Deborah Messner, 59, of Glenmoore, PA, for a divorce and bankruptcy matter. Barbieri is charged with bankruptcy fraud, agent concealing property in bankruptcy, and attempted obstruction of official proceeding. Messner is charged with concealing property in bankruptcy and two counts of false oath in bankruptcy proceeding.
According to the indictments, in February 2009, Messner and Barbieri began discussing Messner’s bankruptcy and she transferred possession of a Chevrolet Corvette to her father. In April of 2009, while assisting her in her divorce settlement, Barbieri allegedly advised Messner to set up an Individual Retirement Account (IRA) where she could deposit the $193,000 in proceeds from the divorce. According to the indictments, Barbieri advised Messner that “additional time will be required in order to protect this substantially larger fund from the grasp of the United States Bankruptcy Court.” It is further alleged that Barbieri later advised “If your funds are in place at the time you declare bankruptcy then they are not subject to confiscation.”
On May 19, 2009, after withdrawing $125,000 from the IRA account, Messner, with Barbieri’s counsel, filed a bankruptcy petition for relief under Chapter 7. In the petition, Messner claimed $84,410 in exempt assets and sought relief from unsecured debts totaling $86,861.47. Messner allegedly concealed the transfer of the Chevrolet Corvette, the divorce settlement proceeds, all of her unsecured creditors, and $22,000 which she transferred to pay Barbieri’s fee.
It is further alleged that on Jun 30, 2009, both Messner and Barbieri appeared at a Section 341 Meeting of Creditors and provided false statements about the bankruptcy petition’s accuracy; that they appeared at a Rule 2004 bankruptcy proceeding on October 7, 2009 and, again, Messner provided false testimony; and that Barbieri false represented that the IRA began to receive monies as part of the divorce settlement on August 1, 2009.
If convicted of all charges, Barbieri faces a statutory maximum sentence of 35 years in prison, a fine of up to $1million, three years of supervised release, and a $400 special assessment; Messner faces a statutory maximum sentence of 15 years in prison, a fine of up to $750,000, three years of supervised release, and a $300 special assessment.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Anita Eve.
Barbieri Indictment.pdf | Messner Indictment.pdf
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Cancer Research Doctor Charged with Theft and Mail FraudRead the Press Release
Steven W. Johnson, Ph.D., 49, of Elkins Park, PA, was charged, yesterday, by indictment, with mail fraud and theft from a program receiving federal funds, announced United States Attorney Zane David Memeger. The charges arise from his misuse of federal funds for cancer research to conduct a for-profit business, while he was employed as a researcher by the University of Pennsylvania School of Medicine.
If convicted the defendant faces a maximum possible sentence of 210 years imprisonment, a 3 year period of supervised release, and a $2.75 million fine.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Karen L. Grigsby.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Burlington Man Sentenced on Federal Cocaine ConspiracyRead the Press Release
DAVENPORT, IA – On May 30, 2014, Corey Damon Keys, age 29, of Burlington, Iowa, was sentenced to 151 months imprisonment by United States District Judge John A. Jarvey for conspiracy to distribute cocaine, announced United States Attorney Nicholas A. Klinefeldt. He was also ordered to serve five years of supervised release following the imprisonment, and to pay $100 towards the Crime Victims Fund.
Beginning in approximately March 2012 and continuing until about April 24, 2013, Keys conspired with other persons to distribute cocaine in the Burlington, Iowa, area. On multiple occasions during the above-mentioned time period, co-defendant Shane Francis Culbertson sold an undercover law enforcement agent cocaine in multi-ounce quantities. Keys conspired with Culbertson for at least some of those transactions.
On January 21, 2014, Judge Jarvey sentenced Culbertson, of Burlington, Iowa, to 30 months imprisonment and three years of supervised release following imprisonment for conspiracy to distribute cocaine. On January 24, 2014, co-defendants Akeem Levelle Eison and Zachary Robert Shullaw, both of Burlington, Iowa, were sentenced by Judge Jarvey to 100 months and 37 months imprisonment, respectively, for conspiracy to distribute cocaine. Both were also ordered to serve three years of supervised release following the imprisonment and to pay $100 towards the Crime Victims Fund.
This case was investigated by the Iowa Division of Narcotics Enforcement, the United States Drug Enforcement Administration, the Burlington, Iowa, Police Department, the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Southeast Iowa Narcotics Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Buffalo Man Charged with Stealing Heroin and FentanylRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned a seven-count indictment charging Ivan Rosario, 19, of Buffalo, N.Y., with conspiracy to possess with intent to distribute and to distribute heroin and fentanyl, possession with intent to distribute and to distribute heroin and fentanyl, and maintain a drug involved premises. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a fine of $5,000,000.
Assistant U.S. Attorney Eric M. Opanga, who is handling the case, stated that according to the indictment, between 2011 and February 6, 2014, the defendant conspired with others to distribute at least 100 grams of heroin and fentanyl in the Buffalo area. On February 6, 2014, during the execution of a search warrant at Rosario’s residence on North legion Drive, officers recovered 41 bags of heroin and fentanyl. One of the bags was located in a baby crib in a bedroom of the residence.
The indictment is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge James J. Hunt.
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.Broward Resident Pleads Guilty in $4 Million Ponzi SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Eric I. Bustillo, Director of Miami Regional Office of the Securities and Exchange Commission (SEC), announce that Jenny Coplan, 55, of Lauderhill, pled guilty for her role in an investment fraud scheme. Sentencing for Coplan is scheduled for August 29, 2013 at 9:30 a.m.
Coplan pled guilty to one count of wire fraud, in violation of Title 18, Untied States Code, Section 1343. At sentencing, the defendant faces a maximum term of 22 years in prison.
According to the plea documents, Coplan was the president of Immigration General Serivces, LLC (IGS) and solicited investors for purported investments in federal bail and immigration bonds. Coplan promised investors interest rates on their investments that exceeded 60% a year.
According to the plea documents, to induce investors to invest money with IGS, Coplan made material oral misrepresentations, which included, among others, promises that the investments were insured by the Federal Deposit Insurance Company, that the investments were secure and had little risk, and that Coplan had the experience and licenses to invest in these bonds. Further, to induce investors to invest money with IGS and to keep their investment with IGS, Coplan made material written misrepresentations to investors, including, among others, providing investors fraudulent and fictitious financial statements and fraudulent and fictitious e-mails from the bond corporation in which investors were purportedly investing.
According to the plea documents, induced by Coplan’s misrepresentations, investors invested approximately $4 million with Coplan by wiring money, writing checks, or providing cash to Coplan. Rather than investing the money in the bonds as promised, Coplan used the monies from new investors to pay old investors and used the money for her personal use and benefit.
Mr. Ferrer thanked the FBI and the SEC for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
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.
Thursday 29 May 2014
Western Mass. Businessman Sentenced for Bank Fraud and Tax EvasionRead the Press Release
BOSTON – A Western Massachusetts businessman, who used more than $2 million of company funds for his own purposes, was sentenced today in U.S. District Court in Springfield for bank fraud and tax evasion.
George J. Rosa, III, 54, of Conway, Mass., the former owner and president of the Hallmark Institute of Photography (HIP) in Greenfield, Mass., was sentenced by U.S. District Judge Michael A. Ponsor to nine months of confinement in a community correctional center, nine months home confinement, 42 months of supervised release, and $3.4 million in restitution. In March 2013, Rosa pleaded guilty to bank fraud and tax evasion.Rosa used approximately $2.6 million of company funds for his own purposes, such as construction expenses at his residence, cash for gambling, and approximately $55,000 of clothing, footwear, and accessories. Rosa then disguised these expenses by reconfiguring them on the company’s books as proper business expenses. Having concealed his personal use of company funds, Rosa defrauded the People’s United Bank in connection with a series of corporate loans, two of which were guaranteed by the Small Business Administration, by submitting the altered books to the bank. Rosa also used the company’s altered books as a basis to file false income tax returns for himself and the company.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz’s Springfield Branch Office.West Hartford Man Sentenced to 71 Months in Federal Prison for Role in Narcotics Trafficking RingRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FABIAN AUGUSTINE, also known as “J” and “Fabe,” 24, of West Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 71 months of imprisonment, followed by four years of supervised release, for trafficking crack cocaine and heroin.
This matter stems from a joint law enforcement investigation headed by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) into a narcotics trafficking operation headed by Luther Nance, also known as “Papers” and “Cash.” The investigation, which included numerous controlled purchases of narcotics and physical surveillance, revealed that Nance and his associates sold crack cocaine and heroin in several communities throughout Connecticut utilizing multiple bases of operation, including a house on Carroll Road in East Hartford, the Sheldon Oaks housing complex in Hartford, and an apartment on Valley Street in Willimantic.
According to court documents and statements made in court, AUGUSTINE primarily distributed narcotics from the Sheldon Oaks apartments in Hartford. Between August 2012 and December 2012, investigators made at least 12 controlled purchases of crack cocaine or heroin from AUGUSTINE. The investigation also revealed that AUGUSTINE possessed a firearm and planned to commit an armed robbery of another drug dealer.
On June 27, 2013, a federal grand jury returned a 51-count superseding indictment charging AUGUSTINE, Nance and 13 other individuals with narcotics conspiracy and related offenses.
AUGUSTINE has been incarcerated on state narcotics charges since January 10, 2013. On February 19, 2014, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 28 grams or more of cocaine base (“crack cocaine”).
On March 7, 2014, Nance pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 280 grams or more of cocaine base, and one count of conspiracy to engage in money laundering. He is detained while awaiting sentencing.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation Division, the U.S. Marshals Service, the Office of the Chief State’s Attorney, the State’s Attorney for the Judicial District of Hartford, and the Hartford, Willimantic, East Hartford, Enfield and Middletown Police Departments.
The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Wasilla Resident Pleads Guilty to Possessing Unregistered Silencer and Killing a Moose in Denali National ParkRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Wasilla resident James C. Riggs plead guilty before U.S. District Court Judge Sharon L. Gleason to possessing an unregistered silencer and for killing a bull moose in Denali National Park in 2012.
The plea arises from charges filed against Riggs, 58, by a federal grand jury, for illegally possessing an unregistered .22 caliber silencer. In a separate matter, Riggs and three other Southcentral Alaska men were charged by the United States Attorney’s Office with a violation of the Lacey Act and other crimes in connection with the take and possession of two bull moose which were illegally taken in Denali National Park in September 2012. As part of his plea agreement, Riggs plead guilty to both charges.
According to Assistant U.S. Attorney Steven Skrocki, the silencer was discovered in Riggs’ home in November 2012, while it was being searched in connection with the Denali moose hunt.
In December 2013, Anchorage residents Charlie W. Hart, 55, and Deric C. Hart, 33, and Homer resident Michael J. Barth, plead guilty to the illegal take and transportation of bull moose from within Denali National Park. In connection with their guilty pleas, all three men were sentenced by U.S. Magistrate Judge Deborah M. Smith, to a term of probation for two years, the payment of $15,000 in restitution to Denali National Park for the two moose illegally taken, a $2500 fine, no hunting for one year, and forfeiture of moose antlers and moose meat as well as one firearm used in the illegal take of a moose.
According to Assistant U.S. Attorney Steven Skrocki, in September 2012, Charles Hart sought, through a third party, permission to moose hunt on a private in-holding of land in the Kantishna area of Denali National Park. Based on Charles Hart’s request, the third-party contacted a landowner who granted permission to Charlie Hart’s party to hunt the inholding on the express condition that only one bull moose be taken, and that the hunt occur within the confines of the private inholding.
In September 2012, Charlie Hart, Derek Hart, James Riggs and another individual traveled the Denali National Park Road to the Kantishna area of Denali National Park to the private inholding. The hunting party obtained appropriate Denali Park Road permits prior to traveling.
During the hunt, all members of the hunt party hunted for bull moose outside the confines of the private inholding and in Denali National Park. While doing so, the party used electronic moose cow calls and hunted the lands well outside the boundary of the inholding, including the mountainsides above the inholding. Using an electronic cow call for hunting is illegal under state law.
On September 3, 2012, Deric Hart, in the company of Michael Barth and another individual, hunted for bull moose outside of the inholding. While hunting outside the property, the group spotted a bull moose a short distance outside the property boundary and/or adjacent to the boundary line, which Deric Hart killed. Thereafter, the hunt party dragged the unlawfully hunted and killed bull moose onto the private inholding by ATV. The bull moose was thereafter field dressed and the antlers removed from the skull. The bull moose’s antlers measured approximately 64 inches.
Two days later, on September 5, 2012, Michael Barth and Derek Hart continued to hunt moose in Denali National Park. On that day, James Riggs was hunting moose outside of the inholding and on another landowner’s property who did not give permission for his land to be hunted. During that day, Riggs shot and killed a bull moose in Denali National Park. Subsequent to killing the bull, Riggs permitted Barth to tag the moose as if he, Barth, had shot and killed the moose. After shooting the second moose, the party illegally used ATV’s and a utility task vehicle (UTV) in a closed off-road vehicle (ORV) area to drag the moose from the location where it fell, in Denali National Park, approximately another one-half mile back to the inholding property for field dressing. The second moose’s antlers measured 65 inches. The following day, the hunt party loaded the meat and antlers of the two unlawfully killed moose into vehicles and transported them to Anchorage. On the way out of Denali National Park, the party was stopped by the National Park Service and questioned. During the questioning, the hunting party lied to a National Park Ranger about the location of the kills, the rifles used to kill the moose and that Barth killed one of the moose when in fact the second moose was killed by James Riggs.
Ms. Loeffler commends the National Park Service, the United States Fish and Wildlife Service, the Bureau of Land Management, the Bureau of Alcohol, Tobacco and Firearms, and the Alaska Wildlife Troopers for their work in the investigation of this case. Sentencing has been set for August 11, 2014.
Washington, D.C. Hospital Worker Pleads Guilty to Identity TheftRead the Press Release
ALEXANDRIA, Va. – Detrius Elliott, 43, of Clinton, Maryland, pleaded guilty today to identity theft for stealing at least 78 identities belonging to financial guarantors of patients at a Washington, D.C. hospital, as part of a large identity theft ring operating in the area.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, and Kathy A. Michalko, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Claude M. Hilton.
In a statement of facts filed with the plea agreement, Elliott admitted to stealing names, addresses, dates of birth, and Social Security numbers from the billing database of the Washington hospital where she worked as a credit and collections representative. Elliott provided the identities to co-conspirator Jenaro Blalock and another member of the identity theft ring, who used the identities to obtain fraudulent driver’s licenses and open instant lines of credit and rent vehicles under the victims’ names. The victims whose identities were stolen from the hospital database suffered approximately $102,000 in losses.
Elliott is the tenth member of the identity theft ring to plead guilty. Co-leaders Christopher Bush, 40, of District Heights, Maryland, and Blalock, 31, of Clinton, Maryland, were previously sentenced to 10 and 12 years in prison, respectively, for leading the ring, which resulted in approximately $1 million in total losses to victims.
Elliott faces a maximum penalty of 15 years in prison when she is sentenced on July 25, 2014.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
This case was investigated by the U.S. Secret Service. Assistant U.S. Attorney Lindsay Kelly is prosecuting the case.Utica Man Sentenced to 20 Years for Child PornographyRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced that John Killingbeck, 63, of Utica, New York was sentenced in federal court in Utica today on two counts of receiving and three counts of possessing child pornography, stemming from his conviction on those charges in December following a jury trial.
United States District Court Judge, Hon. David N. Hurd sentenced Killingbeck to a total of 20 years in federal prison: concurrent sentences of 20 years on each of his convictions for receiving child pornography, to be served concurrently to 10 year sentences on each of the possession charges. The Court further ordered that upon release from federal prison Killingbeck will be placed on federal supervised release for an additional 20 years. He will also have to register as a sex offender.
Killingbeck’s arrest was the result of an investigation by the Oneida County Child Advocacy Center, Oneida County District Attorney’s Office, and the Utica Police Department. The case was adopted for federal prosecution by the United States Secret Service and the United States Attorney’s Office as a part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
The federal prosecution was handled by Assistant U.S. Attorney Lisa Fletcher.
U.S. Attorney Reaches Settlement with Hospital for Special Care to Ensure Equal Access to Summer CampRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that the government has reached a settlement with the Hospital for Special Care in New Britain to resolve allegations that the hospital refused to accommodate a child in its summer camp program in 2013 because the child had juvenile diabetes and required the use of an insulin pump. Title III of the Americans with Disabilities Act (ADA) prohibits discrimination on the basis of disability, including diabetes, by places of public accommodation.
This matter stems from a complaint by an employee of the Hospital for Special Care who was required to use family and medical leave in order to care for her child because the child was not allowed to attend the Hospital’s Vacation Ventures Kids Camp summer camp program. Pursuant to the settlement agreement, the Hospital for Special Care agreed to implement policies and procedures to ensure that children with disabilities are afforded full and equal opportunities to participate in and benefit from all of its summer camp programs. The Hospital also agreed to publish on its website a statement of policy on prohibition of discrimination on the basis of disability.
Under the settlement agreement, the Hospital agreed to restore all of the employee’s family and medical leave used up to the date her child was finally allowed to attend summer camp.
“Every child should have the opportunity to enjoy summer camp in Connecticut,” stated U.S. Attorney Daly. “Ensuring that children with disabilities, and their families, have equal access to summer camps goes to the heart of the ADA’s promises and protections. We hope that this agreement serves as a reminder for other Connecticut summer camp programs about their responsibility to comply with the ADA. While this particular camp was covered under Title III of the ADA – which prohibits discrimination by places of public accommodation – camps run by towns and other municipalities must also comply with the Title II of ADA, which likewise prohibits discrimination against children with disabilities.”
Under Title II and Title III of the ADA, state and local governments and places of public accommodation, respectively, must make reasonable modifications to policies, practices and procedures to afford individuals with disabilities access to and the opportunity to participate and benefit from all of their programs, including summer camps. Reasonable modifications include an individualized assessment of each child on a case-by-case basis, training summer camp staff on the ADA and, if necessary, the use of injectable medicines.
Additional information about the ADA and its application to places of public accommodation can be found at www.ada.gov.
This matter was handled by Assistant U.S. Attorney Lisa Perkins, in coordination with the Department of Justice’s Civil Rights Division.
The enforcement of the ADA is a top priority of the U.S. Attorney’s Office for the District of Connecticut and the Justice Department’s Civil Rights Division. Information about the Civil Rights Division of the Justice Department is available at www.justice.gov/crt.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Two Men Plead Guilty to Federal Drug Related Charges in IdahoRead the Press Release
POCATELLO – Juan Yuen-Rodriguez, 29, of Rupert, Idaho, pleaded guilty yesterday in United States District Court to distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced. In the same case, Jesus Burgos, 52, of Lennox, California, pleaded guilty today to money laundering.
According to the plea agreements, on various dates, including August 14, 2013, Yuen-Rodriguez agreed with an undercover officer to deliver methamphetamine to the undercover officer in Heyburn, Idaho. While driving to the meeting, Yuen-Rodriguez, along with a co-defendant, were stopped by law enforcement. In a box in the back seat of the vehicle officers found 2,024 grams of actual methamphetamine. Additionally, on or about August 12, 2013, at the direction of others, Burgos deposited $4,400 into an account at a bank in Burley, Idaho. Burgos did this knowing that the $4,400 was, in fact, proceeds from the distribution of methamphetamine. The reason for Burgos defendant making this deposit was to disguise the true ownership of the $4,400, making it appear that it was Burgos’ money.
Yuen-Rodriguez’ charge is punishable by ten years to life in prison, a maximum fine of $10 million, and at least five years of supervised release. Burgos’ charge is punishable by twenty years in prison, a maximum fine of $500,000, and at least three years of supervised release.
The men are set for sentencing on August 13, 2014, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration, in conjunction with, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Canyon County Narcotics Unit, Meridian Police Department, Ada County Sheriff’s Office, Idaho State Police, and the Mini-Cassia Drug Task Force.
The OCDETF program is a federal multi agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Three District Men Found Guilty of Federal Charges for Taking Part in Robbery ConspiracyArrests Followed Undercover InvestigationRead the Press Release
WASHINGTON – Pablo Lovo, 26, Joel Sorto, 24, and Yonas Eshetu, 28, all of Washington, D.C., have been found guilty of conspiracy to interfere with interstate commerce by robbery, announced U.S. Attorney Ronald C. Machen Jr., Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD) and Charles E. SmithSpecial Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
In addition, Lovo and Sorto were found guilty of a related firearms offense. The jury verdicts were returned May 28, 2014, following a trial in the U.S. District Court for the District of Columbia. The Honorable Rosemary M. Collyer scheduled sentencing for Sept. 12, 2014. All three defendants face up to 20 years in prison and potential financial penalties. The Court ordered that the three men be held without bond pending their sentencing.
According to the government’s evidence, from mid-August to early September of 2013, members of the Metropolitan Police Department’s Narcotics and Special Investigations Division and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, Washington Field Division, conducted an undercover investigation of the defendants, who conspired to rob a fictitious narcotics dealer/business owner. Lovo was the initial primary target of the investigation.
During that time, five meetings took place in the District of Columbia in which some and/or all of the defendants met with an undercover officer who purported to be working with them on the robbery plans. An undercover agent attended one meeting.
On Sept. 5, 2013, the day of the planned robbery, the three defendants and two other co-conspirators arrived at a target location in one automobile and further discussed the details of the armed robbery and the roles of each co-conspirator. Prior to executing the robbery, the defendants were arrested by the undercover officers. A search of the automobile that the defendants had arrived in yielded three 9 mm firearms, three gun magazines, which contained a total of 44 rounds of 9 mm ammunition, and two machetes that were to be used in the robbery.
The two other co-conspirators, Raul A. Cruz, Jr., 28, and Ariel Flores, 22, both of Washington, D.C., previously pled guilty to conspiracy to interfere with interstate commerce by robbery. They are awaiting sentencing.
In announcing the verdicts, U.S. Attorney Machen, Chief Lanier, and Special Agent in Charge Smith commended the actions of the Metropolitan Police Department officers and ATF Special Agents who worked on the investigation and prosecution of this case. They also commended the work of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Candace Battle, Catherine O’Neal, and Kim Hall; Legal Assistants Tammy Scott, Priscilla Hutson, and LaToya Wade; Information Technology Specialists Kimberly Smith, Thomas Royal, Anisha Bhatia, and William Henderson; Victim/Witness Specialists M. Laverne Forrest and Debra Cannon; Victim/Witness Supervisor Michael Hailey, and Criminal Investigator Duncan Templeton.
Finally, they praised the efforts of Assistant U.S. Attorneys Emory V. Cole and Karla-Dee Clark, who investigated and prosecuted the case.
14-123Three Defendants Sentenced to 60 Months Each for Their Roles in Operating A Multi-Million Dollar Ponzi SchemeRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces that defendants Stephen Merry, David Petersen, and Yaman Sencan were sentenced to federal prison for 60 months each for their roles in a massive, multi-million dollar Ponzi scheme. Following their sentences, Merry and Sencan face potential deportation to the United Kingdom and Turkey, respectively. In addition, the defendants must pay $2,891,898.95 in restitution to seventeen victim investors, as well as pay $2,000 each in special assessment fees to the court.
Merry, Petersen, and Sencan were convicted of conspiracy, securities fraud, and wire fraud following a week-long jury trial in December 2013. At trial, the evidence established that the three defendants played various roles related to a massive investment fraud scheme. Investors believed their money was being sent to a company called Westover Energy Trading Partners where it would purportedly be traded using a super computer. Investors were provided with weekly statements which indicated that their money was being traded and that it was continually earning a profit. However, the super computer was never fully operational, and the investors’ money was not traded as they believed. Furthermore, beginning in 2011, the defendants stopped sending the money to Westover all together. Rather, they kept the money to enrich themselves and to make Ponzi payments to investors. In total, the defendants obtained $4.6 million dollars from investors. Approximately, $1.6 million of that money was paid back out to other investors in the form of Ponzi payments.
This case was investigated by FBI-Mobile and prosecuted by the U.S. Attorney’s Office for the Southern District of Alabama.
Three Defendants Charged in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), announce that defendants Marlan L. Copeland, 42, and Vory V. Copeland, 40, both of Miramar, and Brannoc K. Rudd, 71, of Miami Gardens, were charged in an eighteen-count indictment for conspiring to unjustly enrich themselves by obtaining United States Department of Treasury tax refund checks to which they were not entitled for their personal use and benefit. Marlan L. Copeland and Vory V. Copeland made their initial appearances today before United States Magistrate Judge Chris M. McAliley. Defendant Rudd remains at large.
Specifically, each defendant was charged with one count of conspiracy to commit an offense against the United States, in violation of Title 18, United States Code, Section 371, five counts of theft of government property, in violation of Title 18, United States Code, Section 641, eight counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1), one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and three counts of wire fraud, in violation of Title 18, United States Code, Section 1343.
According to the indictment, the defendants and their co-conspirators submitted fraudulent federal income tax returns to the United States Department of Treasury in the names, and using the social security account numbers, of individuals without their authority. The defendants and their co-conspirators obtained tax refund checks belonging to other individuals and then cashed those tax refund checks without the authority or knowledge of the taxpayers. The defendants and their co-conspirators caused over $300,000 in tax refund checks to be cashed or deposited into their bank accounts which they and their co-conspirators then retained for their personal use and benefit.
Mr. Ferrer commended the investigative efforts of IRS-CI and USSS. This case is being prosecuted by Assistant U.S. Attorney Gera R. Peoples.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.