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Friday 23 May 2014
Justice Department Files Lawsuit Alleging Disability-Based Discrimination by Mississippi DeveloperRead the Press Release
The Justice Department filed a lawsuit today against Mississippi-based developer Dawn Properties Inc. (Dawn) and its affiliated companies for violating the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA). The lawsuit alleges that the defendants violated these laws when they designed and constructed five or more residential properties with barriers that make them inaccessible to persons with disabilities.
“For over two decades, the Fair Housing Act and ADA have required those who design and build multifamily housing complexes to make them accessible to persons with disabilities,” said Acting Assistant Attorney General Jocelyn Samuels for the Justice Department’s Civil Rights Division. “When residential complexes are built with steps but without ramps or other means of access for wheelchair users, Americans with disabilities are denied the basic right to equal housing opportunities.”
“When a developer fails to comply with the Fair Housing Act and the Americans with Disabilities Act, it deprives those with disabilities of their fundamental right to live and raise families in the environment of their choosing,” said U.S. Attorney Gregory K. Davis for the Southern District of Mississippi.
The suit, filed in the U.S. District Court in Gulfport, Mississippi, alleges that The Lexington (Ridgeland, Mississippi), The Beach Club (Long Beach, Mississippi), The Belmont (Hattiesburg, Mississippi), Grand Biscayne (Biloxi, Mississippi) and Inn by the Sea (Pass Christian, Mississippi) have significant barriers, including steps leading to building entrances, non-existent or excessively sloped pedestrian routes from apartment units to site amenities (such as playgrounds, picnic areas and clubhouses or leasing offices), insufficient maneuvering space for wheelchairs in bathrooms and kitchens, excessively high light switches and environmental controls, and inaccessible parking.
The suit seeks a court order requiring the defendants to bring properties they have designed and constructed since 1991 into compliance with the FHA and the ADA, as well as monetary damages for persons harmed by the lack of accessibility and civil penalties to the United States. The suit also names Dawn’s affiliates Southern Cross Construction Company Inc., Ridgeland Construction One LLC, The Beach Club LLC, The Beach Club II LLC, The Belmont of Lamar LLC, Grand Biscayne Apts. LLC and Seainn LLC, as well as the current owners of the complexes who are necessary parties to the litigation. Anyone with information about the inaccessible conditions at these properties should call the Justice Department at 1-800-896-7743, and follow the prompts to enter mailbox 997.
The federal FHA prohibits discrimination in housing based on race, color, religion, national origin, sex, familial status, and disability. Among other things, the FHA requires all multifamily housing constructed after March 13, 1991, to have basic accessibility features, including accessible routes without steps to all ground floor units, and units accessible to wheelchair users and others with disabilities. More information about the Civil Rights Division and the laws it enforces is available at the division website .
The complaint is an allegation of unlawful conduct. The allegations in the complaint must still be proven in federal court .
Hogsett Announces Sentencing in Federal Embezzelment CaseRead the Press Release
Indianapolis woman sentenced to 16 months in prison for her role
in nearly half million dollar theft from Chase BankINDIANAPOLIS - Joseph H. Hogsett, the United States Attorney announced today the sentencing of an Indianapolis woman for her role in an embezzlement scheme that lasted nearly nine years. Tami Riggles, 46, Indianapolis, was sentenced by Federal District Court Judge William T. Lawrence to 16 months in federal prison.
“Each one of us has to be accountable for our actions both in our private and professional lives,” said Hogsett. “If you steal from financial institutions, you steal from all Hoosiers and this office will hold you responsible.”
Riggles was employed as a Senior Floor Plan Operations Specialist, and responsible for transactions involving 700 automobile dealerships who used “floor plans,” a common borrowing system used by dealers to finance their vehicles. While Chase Bank employed safeguards for reconciliation to make sure dollar amounts borrowed and repaid were accounted for each day, Riggles was able to escape detection when she used a Chase Bank general internal account to steal from and to accomplish depositing money into her own personal checking account. None of the dealerships’ money was stolen.
Riggles’ theft of $458,391.00 took place between 2005 and 2013 when her scheme was detected. Riggles was stealing between $8,000 and $16,000 monthly to elevate her lifestyle which included expenditures to numerous retail outlets, restaurants, credit cards, and an online dating site. In addition to agreeing to pay restitution to her former employer, Riggles also agreed to pay $6,450 to the Franklin Youth Basketball League.
“Embezzlement is a crime that causes harm to businesses and diverts funds from their intended use. The FBI will continue to pursue those who unlawfully enrich themselves at the expense of others,” said Special Agent in Charge Robert Jones.
According to Assistant U.S. Attorney Gayle Helart who prosecuted the case for the government, Riggles will serve two years of supervised release after serving her sentence.
Hartford Man Sentenced to 6½ Years for Possession of Child PornographyRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
Stephen Scott Pennington, 41, of Hartford, Maine, was sentenced today in U.S. District Court
by Judge George Singal to 6½ years in prison and five years of supervised release for possession
of child pornography. Pennington pled guilty on November 25, 2013.
According to court records, the defendant used peer-to-peer software to access and make
available for sharing images and videos of child pornography. Federal agents discovered some
of the child pornography online, traced it to Pennington’s computer, seized and examined the
computer, and found over 100 images and over 400 videos of child pornography.
In imposing sentence, Judge Singal observed that child pornography crimes are one of the
worst types because they victimize defenseless children, the images are sickening, and the
defendant did not view it as a problem and made his collection available for sharing on the
Internet. The judge expressed his concern that the defendant still did not get it.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland
Security Investigations.Haitian Man Pleads Guilty to Alien Smuggling Conspiracy That Killed 8Read the Press Release
St. Thomas, USVI – Lamorthe Delva, a Haitian national, pleaded guilty today in federal district court to conspiracy to smuggle illegal aliens into the United States, United States Attorney Ronald W. Sharpe announced.
On April 10, 2014, Delva, 46, was charged in a 10-count indictment, along with Dieuseul Mompremier and Roro Edourre. In addition to conspiracy to smuggle aliens, Mompremier, Delva and Edourre are charged with unlawfully attempting to bring aliens into the United States. Mompremier also is charged with transportation of an alien within the United States on or about December 28, 2011. Edourre was prosecuted for manslaughter in the British Virgin Islands, where he is currently serving his sentence.
According to the indictment, in December 2010, Mompremier, Delva and Roro Edourre, 46, conspired with each other and additional co-conspirators to smuggle illegal aliens into St. John, U.S. Virgin Islands. On December 5, 2010, Edourre was the captain on the vessel “Jesus La,” with approximately 33 passengers, most of them Haitian nationals, including men, women and children, when the vessel traveled from St. Maarten, Netherlands Antilles, to the U.S. Virgin Islands. While Edourre was transporting the illegal aliens on the vessel, Mompremier and Delva waited in the U.S. Virgin Islands and communicated with their co-conspirators by telephone. The U.S. Coast Guard spotted the vessel carrying Edourre and his passengers, and Edourre attempted to evade the Coast Guard. While attempting to evade the Coast Guard, the “Jesus La” ran aground and sank, resulting in the death of at least eight individuals, including four children.
Delva faces a maximum penalty of life in prison and a $250,000 fine.
Sentencing has been scheduled for September 25, 2014, before District Judge Curtis V. Gomez.
United States Attorney Sharpe commended the work of U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and Assistant U.S. Attorney Kim L.Chisholm, who is prosecuting this case.
Former Oklahoma State University Professor Convicted on 26 Fraud and Public Corruption Charges Involving Blackfeet PoKa ProgramRead the Press Release
The United States Attorney's Office announced that on May 22, 2014, a federal jury found GARY JOSEPH CONTI, 68, of Three Forks, guilty on 26 of 27 felony charges relating to his role in deceiving the government in an "in-kind" scheme that auditors have determined resulted in at least $4.6 million in fraud against a grant designed to help troubled and at-risk youth on the Blackfeet Indian Reservation.
The Blackfeet Po'ka Project was the result of a 2005 grant application from the Blackfeet Tribe and designed to provide a comprehensive support structure to assist troubled and at-risk youth. Po'ka was funded by a federal grant from 2005 through 2011. Po'ka received its funding from the Substance Abuse and Mental Health Services Administration (SAMHSA) of the Department of Health and Human Services through a grant relationship between SAMHSA and the Blackfeet Tribe. The Tribe in turn operated the Po'Ka Project as a tribal enterprise. Managers and staff were tribal employees subject to tribal employment rules and regulations, with oversight from the Blackfeet Tribal Business Council. Beginning in 2005 with a $1,000,000 federal disbursement, the grant ultimately became a $9.3 million program over a six year period (2005-2011). The funding arc started with the $1,000,000 award, rose to $2,000,000 per year for two years (2007, 2008) and then tapered off to $1,000,000 in 2010 and $300,000 in 2011.
According to the SAMHSA grant synopsis, the Po'Ka Project - also known as Blackfeet Children System of Care - was a reservation-wide children's mental health system. "Po'Ka goals are: (1) to implement the systems of care philosophy at the local Tribal level; and (2) to identify, plan for, or enhance coordination and facilitate a wraparound process enabling children with SED (Severe Emotional Disorders) and their families to access services to meet their needs."
Francis Onstad served as the Director of Po'Ka and Delyle Shanny Augare as the Assistant Director. Dr. Gary Conti, then a full professor at Oklahoma State University in Stillwater, Oklahoma, served as the national evaluator for the grant and Dr. Dorothy Still Smoking--who had received her doctorate from Montana State University when Conti was a professor in Bozeman during the 1990s-served as the local evaluator. Still Smoking, who was a full time employee with the Blackfeet Housing Authority, provided her services as an independent contractor for Conti and his business, Learning Associates, and was paid for her services through Conti. Conti's services were also billed and paid for through Learning Associates' contract with the Po'Ka Project.
Liz Sherman served as the In-Kind Coordinator for Po'Ka and Charlotte New Breast was the administrative assistant for Po'Ka.
Onstad, Augare, Still Smoking, Sherman, and New Breast were named in the 37-count indictment handed down by the Grand Jury in July 2013, but all reached plea agreements with the United States and plead guilty to charges in the indictment. There sentencing is scheduled for June 2014.
The In-Kind Contribution Requirement And The False Claims Conspiracy
The SAMSHA grant required that the Blackfeet Tribe make the Po'Ka Program self-sufficient; a completely tribal program - entirely supported by the Tribe - by the end of the grant period. The grant required that the Tribe provide a certain amount of funding. "A requirement contained in certain legislation, regulations, or administrative policies that a recipient must maintain a specified level of financial effort in the health area for which Federal funds will be provided in order to receive Federal grant funds." (Emphasis added) Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (SED), CMHS Child Mental Health Service Initiative Number: 93.104. To achieve the goal of final self-sufficiency, the Tribe was required to provide matching contributions-either cash or in-kind-to continue to secure federal payments with the idea that as federal participation declined, tribal participation would rise to fill the funding void left by the absence of federal funds. It was the intent of the parties and SAMHSA that the Po'Ka Project would survive on its own once federal funding was no longer forthcoming.
An in-kind contribution is a non-cash contribution provided by non-federal third parties in support of the project funded by the grant, and its objectives. Third party in-kind contributions may be in the form of real property, equipment, supplies and other expendable property, and the value of goods and services directly benefitting and specifically identifiable to the project or program.
A key component of the grant award was the funding arc; the ratio of federal money to in-kind contributions. Only if Po'Ka met the in-kind contribution targets could they receive the maximum amount of federal money from the grant. Consistent with the sustainability objective of the grant, the Tribe's in-kind contribution requirement was the highest in the later years of the grant. The Blackfeet Tribe was required to provide $7.0 million of in-kind contributions from FYs 2009 through 2011. That created an environment where the appearance of substantial in-kind contributions became paramount if the maximum flow of federal money from the grant was going to continue.
Evidence produced at trial revealed that the in-kind commitment could never be honestly met, so the conspirators began making up facts and documents to try and satisfy SAMHSA and the auditors that the in-kind contributions represented on their reports to SAMHSA were legitimate. They did so by inflating the figures related to in-kind contributions, assigning values to non-existent and illegitimate "contributions," and manufacturing fraudulent invoices and records to support fictional or inflated contributions. The misrepresentations as to in-kind amounts were made in monthly reports to SAMHSA and the documents were generated to placate auditors conducting a required annual audit of the Tribe's operations. These annual audits are required of tribes accepting federal grant funds to insure that the grant funds are being used for their intended purpose and that the requirements of the contract agreement are being met. If auditors make negative findings, those findings can result in action by the federal agency to rescind the contract, demand repayment, or make an offset, where the government deducts money from future payments.
Several witnesses, whose names were used as in-kind contributors, denied preparing or signing the invoice and denied contributing time or goods to the Po'Ka Project.
Based on email evidence and the statements of cooperating witnesses, Onstad, along with Conti, Sherman, and others, conspired to make the false representations as to the in-kind contributions made to the Po'Ka Project, and then actively managed the creation of false documentation to cover the representations so that the auditors would not question the contributions and the federal money would continue flowing unabated. The false representations were, in effect, false claims that resulted in the expenditure of federal grant money that would not have been expended had the principals honestly represented the woefully inadequate level of non-federal support.
Emails entered into evidence by the prosecution indicated that Conti was often consulted for advice as to how to appease auditors hired by the Tribe to perform a mandatory audit.
Auditors with the Office of Inspector General (OIG), U.S. Department of Health and Human Services, have determined that at least $4.6 million in claims for grant payments paid to the Tribe on the basis of Po'Ka' s in-kind contribution are unsupported, inflated, or completely falsified.
The Embezzlement Scheme With Conti
At trial, witnesses described how Onstad and Augare had embezzled from the program in a myriad of ways - travel fraud, misuse of Po'Ka credit cards, exorbitant claims of overtime, theft of program property, etc. - but the most significant embezzlement came in the agreement Onstad and Augare appeared to have reached with Conti wherein they would approve payments to Conti with the understanding that he would kick back a sizable portion-roughly one-half of the payment amount-to a bank account they controlled in the name of a children's charity, the Child Family Advocacy Center CFAC).
A forensic accountant with the FBI told the jury that between August 2008 and August 2011, Onstad and Augare approved over $475,000 in Po'Ka grant monies for Conti's business, Learning Associates. In turn, between August 2008 and September 2011, Conti transferred $231,550 to CFAC bank accounts at Wells Fargo Bank in Cut Bank.
Conti had declared bankruptcy in Oklahoma on April 29, 2009. Four days later Conti opened a Browning bank account for Learning Associates and began having his payments from the Blackfeet Tribe deposited into that account. Between May 2009 and August of 2011, each time a Po'Ka check would be deposited into the Browning account, Conti wrote checks from approximately half the amount to CFAC. The FBI witness testified that the amount from Conti was split roughly equally by Onstad and Augare through withdrawals from the CFAC accounts and deposits into their personal accounts and that the disposition of the money from their appeared mostly casinos and travel to Nevada.
Conti was convicted of conspiracy to defraud the United States, conspiracy to submit false claims against the United States, aiding theft from an Indian tribal government receiving federal funding, money laundering, theft of federal money, and twenty-one counts of wire fraud. Another jury found Conti guilty of bankruptcy fraud in March.
U.S. Attorney Mike Cotter lauded the jury's verdicts. "Grants like Po'Ka reflect the generous spirit of this country to help the least fortunate among us. For their objectives to be accomplished they must be protected and their integrity preserved. When a group of predatory opportunists see these grants as a golden goose ready to be exploited for personal gain, this office will respond with clear and decisive prosecution as a message to all that corruption in in any community in Montana will not be tolerated and that those who pillage public funds had best factor dire consequences into their decision to commit fraud."
Former Illinois State Rep. Keith Farnham Indicted for Allegedly Possessing, Receiving, and Transporting Child PornographyRead the Press Release
CHICAGO ― A federal grand jury returned a four-count indictment charging former Illinois State Rep. KEITH FARNHAM with possessing, receiving, and transporting child pornography, federal law enforcement officials announced today. Farnham was initially charged with one count of possession of child pornography in a criminal complaint filed last month in U.S. District Court.
Farnham, 66, of Elgin, was indicted yesterday on one count of possessing child pornography involving a minor under age 12, one count of receiving child pornography, and two counts of transporting child pornography, all via computer. Farnham, who was previously released on his own recognizance with conditions, including home incarceration and electronic monitoring, will be arraigned on a date yet to be determined in Federal Court.
The indictment also seeks forfeiture of a computer hard drive that was seized at Farnham’s residence on March 13, when agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed federal search warrants at Farnham’s state office and residence in Elgin.
Farnham resigned his seat in the Illinois General Assembly on March 19.
According to the complaint affidavit, HSI agents were investigating information received from the HSI Cyber Crimes Center that an email address, later linked to Farnham, was being used to trade child pornography on the Internet.
Possession of child pornography of a minor under age 12 carries a maximum sentence of 20 years in prison, while each count of receiving and transporting child pornography carries a mandatory minimum sentence of five years and a maximum of 20 years, and a maximum fine of $250,000 on each count. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Gary Hartwig, Special Agent-in-Charge of HSI in Chicago.
The government is being represented by Assistant U.S. Attorney Michelle Petersen.
An indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Former Federal Agent Sentenced to Prison for Making False StatementsRead the Press Release
SAN FRANCISCO – James Contreras was sentenced today to 12 months in prison, and ordered to pay a $10,000 fine for making false statements to the government, announced United States Attorney Melinda Haag and United States Department of Justice Inspector General Michael E. Horowitz.
Contreras pleaded guilty on Feb. 26, 2014 in the United States District Court for the Western District of Washington in Seattle to one count of making material false statements to the government. According to the plea agreement, Contreras stated that while he was employed with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) and assigned the position of Group Supervisor, he was responsible for disbursing and accounting for money in a cash fund used for investigative expenses, including making payments to confidential informants. In pleading guilty to one of the thirty false statement counts in the indictment, Contreras admitted that he wrote what purported to be the signature of an agent under his supervision on forms requesting and documenting use of money from the cash fund. Contreras also admitted that he signed a payment receipt falsely showing that the agent used the money to make a payment to an informant, although Contreras knew that the agent did not make the payment. Contreras admitted that he then submitted the forms for supervisory approval knowing that they contained falsified signatures and information.
Contreras, 52, of Ravensdale, Wash., was indicted by a federal grand jury in Seattle on Nov. 21, 2013. He was charged with thirty counts of making material false statements on sets of documents purporting to document expenditures from the cash fund over which he had custody and control, and with one count of embezzlement of public money in excess of $1,000.
As part of the plea agreement, Contreras agreed that the total funds disbursed from the cash fund in connection with the charges in the Indictment was $19,700.
Seattle Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Douglas R. Dawson, stated, “Jim Contreras’s actions should not reflect poorly on the men and women of the ATF who perform their jobs with honesty and integrity every day. Their tireless efforts to protect our communities, regularly in the face of great danger, is what we all should recognize and appreciate.”
The sentence was handed down by the Honorable Marsha J. Pechman, Senior United States District Court Judge, Western District of Seattle, following Contreras’s guilty plea to Count Nineteen of the indictment, charging making a material false statement to the government, in violation of Title 18, United States Code, Section 1001(a)(3). Judge Pechman also sentenced the defendant to a three-year period of supervised release. The defendant will be permitted to self-surrender for service of sentence. He will be notified of the date by the court.
Susan Badger of the U.S. Attorney’s Office for the Northern District of California is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rosario Calderon. The prosecution is the result of an investigation by the United States Department of Justice Office of Inspector General, Investigations Division and the ATF Office of Professional Responsibility and Security Operations.
(Contreras indictment )
Former Executives of U.S. Corporation Extradited from Britain to Face Federal Fraud Charges in MarylandRead the Press Release
Allegedly Obtained Over $1.4 Million through Fraudulent Reimbursements
Greenbelt, Maryland – Paul Dunham and his wife, Sandra Dunham, both age 58, of Northampton, England, formerly of Montgomery County, Maryland, had an initial appearance today before U.S. Magistrate Judge William Connelly, in U.S. District Court in Greenbelt, Maryland. Yesterday, Deputy U.S. Marshals escorted the couple from England after they were extradited to face a federal indictment on conspiracy, wire fraud and money laundering charges in connection with their employment at PACE, Inc. A federal grand jury returned the indictment on December 7, 2011, and it was unsealed today. Magistrate Judge Connelly ordered that the Dunhams be detained pending a detention hearing scheduled for Tuesday, May 27, 2014, at 11:00 a.m. before U.S. Magistrate Judge Jillyn K. Schulze, in courtroom 3A, U.S. District Court in Greenbelt.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to the indictment, PACE, Inc. was a Maryland corporation that produced parts for the repair and reworking of electronics for the military and others. PACE USA had a subsidiary in the United Kingdom called PACE Europe, Ltd. Paul Dunham was President and Chief Operating Officer of PACE USA and Managing Director of PACE Europe. Sandra Dunham was the Director of Sales and Marketing for PACE USA and PACE Europe. The Dunhams were provided with corporate credit cards, and also maintained personal credit cards.
The 13-count indictment alleges that between 2002 and 2009, Paul Dunham and Sandra Dunham fraudulently charged personal expenses to their corporate credit cards and submitted vouchers to PACE for reimbursement that falsely described them as business expenses. The indictment alleges that the couple also fraudulently billed PACE Europe for business expenses already paid by PACE, Inc., obtaining duplicate reimbursements. The personal expenses for which Mr. and Mrs. Dunham obtained reimbursements included furniture, a dog sofa and pet residence, weekly grocery expenses, art work, home cleaning and remodeling services, and airline tickets.
In order to conceal the scheme, the couple allegedly submitted fraudulent expense vouchers. Paul Dunham is alleged to have created, doctored, and falsified receipts and invoices to create the false appearance that they were for business, rather than personal expenses. In addition, Paul Dunham is alleged to have instructed his assistant not to reveal records related to personal purchases made by himself and Sandra Dunham.
Finally, the indictment seeks the forfeiture of $1.4 million, alleged to be the proceeds of the scheme.An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney David I. Salem and Special Assistant U.S. Attorney Paul K. Nitze, who are prosecuting the case, and the Office of International Affairs and the U.S. Marshals Service for their assistance in this case.
Former Employee of U.S. Contractor Pleads Guilty to Fraud SchemeRead the Press Release
A former employee of a U.S. contractor pleaded guilty today to conspiracy to defraud the United States in connection with a contract to provide reconstruction-related services in Afghanistan.
Acting Assistant Attorney General David O’Neil of the Justice Department’s Criminal Division and United States Attorney for the Middle District of Florida A. Lee Bentley made the announcement.
Alan D. Simmons pleaded guilty today before U.S. Magistrate Judge Patricia D. Barksdale in the Middle District of Florida.
According to court documents, Simmons worked in Afghanistan as a training program coordinator for PAE Inc. PAE had a contract with the United States Department of State to train and supply uniforms to Afghan correctional officers. Simmons was responsible for providing information to others at PAE as to the number and types of uniforms that were to be ordered and provided to the Afghan correctional officers upon their completion of the training program.
As alleged in court documents, Simmons and others created a company, Aminzian Logistics Services (Aminzian), ostensibly to provide uniforms to PAE as a subcontractor. In fact, Aminzian would submit false and fraudulent invoices to PAE seeking payment for goods that were not in fact provided. After Aminzian was paid, Simmons and his co-conspirators split the proceeds. The United States reimbursed PAE for its payments to Aminzian and incurred a loss of over $120,000.
The case was investigated by the Department of State Office of Inspector General and the Special Inspector General for Afghanistan Reconstruction (SIGAR). This case was prosecuted by Special Trial Attorney Mark H. Dubester, on detail from SIGAR, and Assistant U.S. Attorney Kevin C. Frein of the Middle District of Florida.Former Broward County Tax Preparer Sentenced for Contempt of CourtRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Dianelys Armengol Guevara, 28, of Pembroke Pines and Dallas, Texas, was sentenced by U.S. District Judge James I. Cohn to 30 months in prison followed by 12 months of supervised release. Dianelys Armengol Guevara previously pled guilty to a one-count information charging her with contempt of court for violating a court order forbidding her from acting as a tax preparer.
According to the factual proffer filed in court, Guevara worked as a professional tax preparer at Liberty Tax Services, in Hollywood, from 2005-2009. In 2010, the Department of Justice Tax Division filed a civil complaint against Guevara, based on a civil IRS investigation, alleging that Guevara filed tax returns improperly claiming First Time Homebuyer Credits, various education credits, deductions, and expenses. In January 2011, U.S. District Judge Cecilia M. Altonaga entered a judgment which permanently barred Guevara from acting as a federal tax return preparer. However, on or about January 13, 2011, Guevara began willfully disobeying that judgment by continuing to prepare, and assist in preparing, federal tax returns, from her home in Pembroke Pines. Guevara admitted to preparing approximately 130 federal tax returns after the Court entered its bar order. Audits by the IRS found that many of the returns prepared by Guevara also made illegitimate claims to education credits and other deductions, resulting in an average under-payment of approximately $3,358 per return.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Jared M. Strauss.
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.
Five Charged with Drug Trafficking Out of Rio Grande ValleyRead the Press Release
LAREDO, Texas – Two indictments have been unsealed following the arrest of one McAllen and four Zapata residents alleging marijuana and/or cocaine trafficking, announced United States Attorney Kenneth Magidson.
Both indictments were returned under seal May 13, 2014, and unsealed upon today’s arrests of Roberto Piedra, 33, Isidro Ramirez, 34, Ramiro Guerrero, 35, and Omar Gonzalez, 50, all of Zapata, and Martin Gonzales Garces Jr., 55, of McAllen. All five are expected to make an initial appearance before U.S. Magistrate Judge J. Scott Hacker Tuesday morning.
The first indictment alleges Piedra, Ramirez, Guerrero and Gonzalez conspired to possess with the intent to deliver 1,000 kilograms or more of marijuana between February 2013 and Nov. 25, 2013, from South Texas to northern destinations.
Specifically, transporters would allegedly drive the marijuana from the Rio Grande Valley to Laredo through ranches west of Laredo in order to avoid traveling through U.S. Border Patrol Immigration checkpoints. The indictment alleges the marijuana was concealed in belly dump trucks below loads of caliche as well as in utility trucks in order for these vehicles to blend in with oil field traffic on ranches. Members of the organization allegedly scouted for these loaded vehicles.
The first indictment further alleges that Piedra, Ramirez, Guerrero and Gonzalez possessed with the intent to distribute more than 1,000 kilograms of marijuana on Nov. 24-25, 2013, and that Piedra possessed with the intent to distribute five kilograms or more of cocaine on Nov. 22, 2013.
The second indictment alleges that Garces conspired and possessed with the intent to deliver five kilograms or more of cocaine on Feb. 7, 2014.
If convicted, all face a mandatory minimum sentence of 10 years and up to life in prison and a possible $10 million fine.
The case is being investigated by the Homeland Security Investigations with the assistance of U.S. Border Patrol and the Zapata County Sheriff’s Office. Assistant United States Attorneys Elizabeth R. Rabe and Raul Guerra are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.First MS-13 Member Extradited from El Salvador to United States Sentenced to 35 Years for Role in Attempted Murder of Two IndividualsRead the Press Release
One of the Seriously Wounded Victims Was Pregnant
ALEXANDRIA, Va. – Edgar Benitez Hernandez, also known as “Shadow,” 26, of the District of San Miguel, El Salvador, was sentenced today to 35 years in prison on two counts of using and discharging a firearm during or in relation to an attempted murder in aid of racketeering. Benitez Hernandez was extradited from El Salvador to the United States on Dec. 18, 2013, and had been indicted previously by an Eastern District of Virginia grand jury on June 13, 2010, on multiple racketeering charges, including attempted murder.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Michael L. Chapman, Loudoun County Sheriff; and Maggie DeBoard, Town of Herndon Chief of Police, made the announcement after the sentencing before U.S. District Judge Claude M. Hilton.
Benitez Hernandez pleaded guilty on Feb. 12, 2014. According to court documents, Benitez Hernandez, a soldier in the notoriously violent transnational street gang Mara Salvatrucha 13 (“MS-13”), attempted to murder two individuals on Sept. 13, 2008, in Loudoun County, Va. On that date, Benitez Hernandez concealed himself behind some shrubs and when the male and pregnant female victims were within range, he fired multiple shots while yelling “Mara Salvatrucha Cabrones.” Both of the victims were critically injured and likely would have died were it not for immediate surgical intervention. The unborn baby also survived the wounding. Benitez Hernandez committed the double shooting to increase his position within MS-13’s criminal enterprise.
On May 22, 2013, Benitez Hernandez was apprehended in El Salvador by an elite Salvadoran investigative unit known as the Transnational Anti-Gang (TAG) Task Force. This extradition marks the first time in recent history that a Salvadoran citizen has been extradited to the United States to be held accountable for gang-related crimes committed in the United States.
This case was investigated by the Federal Bureau of Investigation, Loudoun County Sheriff’s Office and the Northern Virginia Gang Task Force, with assistance from the Town of Herndon Police Department. The U.S. law enforcement partners involved in the investigation and prosecution of Benitez Hernandez would like to thank the Salvadoran National Police for their outstanding assistance in bringing this fugitive to justice. U.S. Attorney Dana J. Boente also thanked the FBI’s Legal Attaché Office in El Salvador, the Government of El Salvador and the U.S. Department of Justice’s Office of International Affairs, each of which were critical in securing the custody and extradition of Benitez Hernandez. Assistant U.S. Attorneys Zach Terwilliger and Patricia Haynes prosecuted the case on behalf of the United States.
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.Final Defendant Is Sentenced to 51 Months in Prison for Wire Fraud and Money Laundering as Part of A $5 Million Ponzi SchemeRead the Press Release
DENVER – Stanley W. Anderson, age 70, of Arvada, Colorado was sentenced by U.S. District Court Judge Christine M. Arguello to serve 51 months in federal prison for wire fraud and money laundering, federal law enforcement authorities announced. Following his prison sentence, Anderson, was ordered to spend 3 years on supervised release. Judge Arguello also ordered him to pay $5,226,300 in restitution.
Anderson was indicted by a federal grand jury in Denver on March 22, 2012, along with co-defendants Pastor Charles Lawrence Kennedy, Jr. of Tampa, Florida and Edwin Alexander Smith of Denver, Colorado. Kennedy and Smith pled guilty and were sentenced to federal prison for twelve and thirty months, respectively.According to the facts contained in the indictment as well as the stipulated facts contained in the various plea agreements, beginning in October of 2005 and continuing through December 2008, Anderson, Smith and Kennedy together with each other, and aiding and abetting other persons known and unknown to the Grand Jury, devised a scheme to defraud investors.
Anderson and Smith resided in Colorado and conducted business through “CFO-5, LLC” and “Trinity International Enterprises, Inc”, two companies they controlled. Trinity had no business operations apart from soliciting investment funds related to an investment program. Anderson was the chairman and chief executive officer of CFO-5 and Trinity. Smith was the secretary of CFO-5 and president of Trinity. Kennedy resided in Florida where he worked as a pastor and conducted business through a company identified as “Keys to Life Corporation". Kennedy through a formal partnership with Trinity assisted Anderson and Smith in soliciting investment funds.
They solicited investors' funds for use in an investment program where significant profits would supposedly be generated through the trading of European medium term notes ("MTN program"), when in fact, the MTN program did not exist. Furthermore, they represented that their MTN program would pay nearly immediate returns in amounts ranging from 200 to 1000 percent.
They raised approximately $5 million dollars from approximately 100 investors nationwide over the course of the scheme. The investors' funds were not used to trade in financial instruments, but were instead misappropriated by Anderson, Smith and Kennedy for unauthorized uses. Investors, with the exception of those who received Ponzi scheme-like payments, that is, money taken from one investor to compensate another, lost their total investments. Anderson and Smith generally commingled and deposited investors' funds into bank accounts controlled by Anderson and Smith.
Anderson was the lead person for the investment program and managed the daily operations of the program, made key decisions as it related to the use of investor funds, handled investor communications, and oversaw the relationship with various promoters responsible for soliciting investors. During periodic conference calls with investors, Anderson conducted such calls and provided investors with purported updates. Similarly, Anderson would typically author and distribute e-mail communications to investors in which false information regarding the status of the investment was contained. As it related to the handling of funds collected by investors, Anderson typically controlled and determined the expenditure of such funds. He diverted thousands of dollars in investor funds for personal use including, house payments, meals and entertainment, personal judgments and salary payments for his children.This case was investigated by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the United States Postal Inspection Service.
This case is being prosecuted by Assistant U.S. Attorney Timothy Neff.
Felon in Possession of Firearm Sentenced to 21 Months in PrisonRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez on Thursday sentenced Fenyang Ouma Francis, 24, to 21 months in prison for a felon in possession of a firearm conviction, United States Attorney Ronald W. Sharpe announced.
On January 15, 2014, Francis pleaded guilty to one count of felon in possession of a firearm after he was arrested and charged with federal and territorial firearm offenses. According to documents filed in court, Francis was arrested on November 2, 2013, after a traffic stop in which a firearm was found in his car. Francis had been previously convicted in connection with the shipment of a firearm into the Virgin Islands from Florida in 2009. Francis was on supervised release for the shipment of a firearm conviction when he was arrested on November 2, 2013. He faces a revocation hearing for violation of his supervised release. The revocation hearing is scheduled for June 12, 2014.
This case was investigated by the Virgin Islands Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant U.S. Attorney Nelson L. Jones prosecuted the case.
Fairbanks Man Indicted for Making False Statements in Connection with February, 1978 Bombing of Trans Alaska PipelineRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Fairbanks man has been indicted by a federal grand jury for three counts of making false statements to the Federal Bureau of Investigation in connection with a recent renewed investigation of a bombing attack on the Trans Alaska Pipeline which took place in mid-February of 1978. The indictment alleges that PHILLIP MARTIN OLSON, age 61 of Fairbanks, made admissions to the FBI last fall and earlier this year concerning his own involvement in the 1978 pipeline attack, but falsely implicated another individual in carrying out the bombing with him.
On February 15, 1978, a pilot flying over the pipeline north of Fairbanks, Alaska spotted what appeared to be a large plume of crude oil jetting from the pipeline at approximately mile 454.5. An investigation established that an explosive device had been placed on the pipeline and successfully detonated, resulting in a large breach. Approximately 12,000 to 14,000 barrels of crude oil was ejected from the pipeline and onto the surrounding terrain before the spill was stopped. After an investigation by the state and federal law enforcement agencies, no one was charged with carrying out the 1978 bombing attack.
The indictment alleges that more than 35 years later – in November of 2013 – the Federal Bureau of Investigation was notified that OLSON had been making recent statements admitting that he had carried out the 1978 pipeline bombing. A renewed joint investigation by the FBI and the Alaska State Troopers commenced, which included multiple interviews of OLSON, and others. The indictment alleges that when interviewed on three occasions, OLSON admitted that he had carried out the 1978 attack, but falsely implicated another individual in carrying out the bombing with him.
OLSON was arrested in Fairbanks by the FBI and the Alaska State Troopers this morning, and was arraigned at 3:00 p.m. this afternoon before U.S. Magistrate Judge Scott A. Oravec. OLSON was ordered temporarily detained pending a detention hearing to be held before Judge Oravec next week.
Assistant United States Attorney Joseph Bottini, who presented the case to the grand jury, indicated that the law provides for a sentence of up to five years, as well as a fine of $250,000 and up to 5 years of supervised release following service of a prison sentence for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation and the Alaska State Troopers conducted the investigation leading to the indictment in this case. Alyeska Pipeline Services Company provided significant cooperation to the investigating agencies.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Ellsworth Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that an Ellsworth Air Force Base man has been indicted by a federal grand jury for Receipt of Child Pornography and Possession of Child Pornography.
Colby Haggerty, age 22, was indicted on May 20, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on May 21, 2014, and pled not guilty to the Indictment.
The penalty upon conviction is a mandatory minimum of 5 years’ imprisonment up to 20 years’ imprisonment and/or a $250,000 fine, lifetime of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment charges that between August 2009 and April 2014, at Ellsworth Air Force Base, Haggerty knowingly received and possessed computers files containing images of child pornography.
The charges are merely accusations and Haggerty is presumed innocent until and unless proven guilty.The investigation was conducted by the South Dakota Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Haggerty was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Eagle Pass Texas Mexican Mafia Members Arrested for Violating Federal Racketeering Influenced Corrupt Organization (RICO) and Violent Crime in Aid of Racketeering (VICAR) StatutesRead the Press Release
Fourteen Texas Mexican Mafia (TMM) members, including leader Jesus Lopez (aka “Worst Ever”), are in custody today charged with violating the Racketeering Influenced Corrupt Organization (RICO) Act to include alleged acts of murder, extortion and drug trafficking in the Eagle Pass area. Five members also face charges under the Violent Crime in Aid of Racketeering (VICAR) statute. A list of the indicted defendants is below.
That announcement was made earlier today by United States Attorney Robert Pitman; Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division; Texas Department of Public Safety Director Steve McCraw; Drug Enforcement Administration Special Agent in Charge Joseph A. Arabit, Houston Division; Homeland Security Investigations Special Agent in Charge Janice Ayala; and, Chief Patrol Agent Rodolfo Karisch, U.S. Border Patrol, Del Rio Sector.
A five-count federal grand jury indictment, returned on Wednesday and unsealed today, charges all 14 defendants with one count of conspiracy violate the RICO Act. Jesus Lopez, Anselmo Flores, Francisco Hernandez, Hector Martinez and Esteban Munoz are also charged with two counts of Violent Crime in Aid of Racketeering. Raul Herrera and Reynaldo Vivian are each charged with one count of conspiracy to possess with intent to distribute a controlled substance.
The indictment alleges that Flores, under the direction of Lopez and others, stabbed and murdered Eagle Pass resident Angel Cantu on January 22, 2011, while other TMM members stood guard with weapons. Furthermore, TMM members provided Flores with money to leave town after the murder to deflect law enforcement attention from the criminal enterprise. At the time of Cantu’s murder, the indictment alleges that Hernandez, aided and abetted by Lopez, Flores, Martinez and Munoz, assaulted another individual with a dangerous weapon.
The indictment further alleges that all 14 defendants conspired in the distribution of narcotics as well as the extortion of cocaine distributors in Eagle Pass since 2009. According to the indictment, proceeds from the distribution and extortion were transferred to the San Antonio branch of the TMM.
The indictment also alleges that around early December 2010, Lopez ordered Martinez, Hernandez, Flores and others to retrieve and destroy firearms, which they did, that were used during the attempted murder of an individual who provided information about the TMM to law enforcement.
Hernandez, Lopez, Flores, Martinez and Munoz face a mandatory life in prison sentence upon conviction of violent crime in aid of racketeering. Those five defendants, along with Herrera, face up to life in federal prison upon conviction of the RICO Conspiracy charge. The other eight defendants face up to 20 years in federal prison upon conviction of the RICO Conspiracy charge. Herrera faces between 5 and 40 years in federal on the drug conspiracy charge; Vivian, up to 20 years in federal prison on the drug conspiracy charge.
Beginning last night and continuing this morning, federal, state and local authorities arrested Michael Eric Cantu, Esteban Munoz, and Reynaldo Vivian in Eagle Pass; Claudio Salinas in Del Rio; and, Anselmo Flores near Bismarck, ND. The remaining defendants were already in custody prior to today.
This case resulted from a joint investigation by the FBI, Texas Rangers, Department of Public Safety Criminal Investigation Division, DEA, HSI and Border Patrol.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Name Age Residence
**JESUS LOPEZ, aka “Jessie,” aka “Worst Ever” 35 Eagle Pass
**GERARDO CASTILLO, aka “Jerry,” aka “Chingo Bling” 32 Eagle Pass
**SALOMON MARTINEZ, aka “Salo” 39 Eagle Pass
**IVAN VELASQUEZ, aka “Pipi” 35* Eagle Pass
**JOSE ALEJANDRO MALDONADO, aka “Chivia” 34 Eagle Pass
CLAUDIO SALINAS, aka “Conejo” 34 Del Rio
**JUAN CARLOS LEDEZMA, aka “Yogi” 31 Eagle Pass
MICHAEL ERIC CANTU, aka “Miklo” 28 Eagle Pass
ANSELMO FLORES, aka “Chemo” 26 formerly of Eagle Pass
**FRANCISCO JAVIER HERNANDEZ, aka “Coco” 35 Eagle Pass
**HECTOR ANGEL MARTINEZ, aka “Tonka” 35 Eagle Pass
**RAUL ADRIAN HERRERA, aka “Nano” 35 Eagle Pass
ESTEBAN MUNOZ, aka “Rock” 31 Eagle Pass
REYNALDO VIVIAN, aka “Rey” 35 Eagle Pass** Were already in custody prior to today’s arrests
Douglas, Georgia Man Charged with Armed Robbery of Wells Fargo BankRead the Press Release
WAYCROSS, GA – Nevada Powell, 33, pled not guilty yesterday before a Federal Magistrate Judge on to charges of Armed Bank Robbery, Brandishing a Firearm During a Crime of Violence, and Possession of a Firearm by a Prohibited Person. Powell was indicted by a federal grand jury sitting in Savannah earlier this month. According to the indictment, Powell stole approximately $38,000 from the Wells Fargo bank on April 16, 2014 “by force, violence and intimidation,” which included the use of a Mossberg 12 gauge shotgun and a simulated explosive device. The indictment also alleges that prior to the robbery Powell had been convicted of a felony offense. The charges follow an investigation by the Federal Bureau of Investigation, the Douglas Police Department, the Coffee County Sheriff’s Office, and the Georgia Bureau of Investigation. Powell has been ordered to remain in custody pending trial.
United States Attorney Edward Tarver commented: “Our citizens should be able to patron local businesses free from the threat of violence. The United States Department of Justice and this United States Attorney’s Office consider the cessation of violent crime and the protection of American citizens to be its top priority. We will continue to vigorously prosecute this type of activity when it occurs within federal jurisdiction.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Mr. Powell is now federally charged with a serious armed robbery wherein he also left behind a hoax IED/explosive device for law enforcement to deal with. The FBI is appreciative of the quick response by the Douglas Police Department and the Coffee County Sheriff’s Office that led to Powell’s capture as well as the hard work of the GBI in the handling of that hoax IED. “
An indictment is only an accusation and is not evidence of guilt. The Defendant is entitled to a fair trial, during which it will be the Government’s burden to prove the Defendant’s guilt beyond a reasonable doubt.
Assistant United States Attorney Jennifer G. Solari is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
District Woman Sentenced to Four Years in Prison for Death of Infant Son at Northeast Washington ConventDefendant Smothered Baby Shortly After Giving BirthRead the Press Release
WASHINGTON – Sosefina Amoa, 26, formerly of Samoa, was sentenced today to four years in prison on a charge of voluntary manslaughter stemming from the death of her infant son at a convent in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Amoa pled guilty to the charge in February 2014 in the Superior Court of the District of Columbia. She was sentenced by the Honorable Robert E. Morin. Upon completion of her prison term, Amoa will be placed on five years of supervised release. She also is subject to deportation proceedings.
According to a proffer of facts presented at the plea hearing, Amoa arrived in the United States from Samoa on Oct. 5, 2013. She then entered a program to become a member of the Little Sisters of the Poor, an international congregation of Roman Catholic women who provide worldwide service to the elderly poor. She was considered a “Postulant,” a person who wanted to be admitted into a religious order. Amoa moved into the Little Sisters of the Poor’s convent in Northeast Washington, where she was to reside for five months while she received religious classes, learned doctrine, experienced prayer and community life, and cared for residents.
On Oct. 10, 2013, Amoa asked to be excused from her duties and went to her room. The baby was born in Amoa’s room that morning. Amoa cleaned the room in what authorities determined was an attempt to hide the birth of the child.
The following morning, Oct. 11, 2013, Amoa contacted one of the Sisters and took her to her room, where she showed her the baby. The Sister knew that the infant was dead.
Amoa gave conflicting accounts to the Sisters and police about what happened. Ultimately, on Oct. 16, 2013, she told detectives with the Metropolitan Police Department (MPD) that, after she gave birth to the child, the baby fell to the floor. She said that she got on the floor next to the baby, not knowing what to do, and that she was afraid that someone would hear crying and learn of her pregnancy. According to Amoa, she then placed a wool garment over the baby’s nose and mouth and applied pressure with her hand for two to three minutes.
The District of Columbia Office of the Medical Examiner determined that the cause of death was asphyxia. The infant was a fully developed, full-term baby, born alive. There was evidence in the lungs that the baby had cried and had been alive before being asphyxiated. Additionally, there was bruising and scratches to the infant’s nostrils.
In announcing the sentence, U.S. Attorney Machen commended the work of the detectives, officers, and others who investigated the case from the Metropolitan Police Department. He also expressed appreciation to the District of Columbia Office of the Medical Examiner and the District of Columbia Department of Forensic Sciences for assistance in the investigation. Finally, he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Kelly Blakeney, Victim/Witness Advocates Marcia Rinker and Lorraine Chase, and Assistant U.S. Attorney Cynthia G. Wright, who prosecuted the case.
14-119Denver Man Who Lied About War Crimes He Committed in Ethiopia in Order to Come to the United States and Become A Citizen Sentenced to 22 Years in Federal PrisonRead the Press Release
Defendant's citizenship stripped by the judge as a result of his conviction
DENVER – A Colorado man who used a false identity and lied to gain immigration status in the United States to hide his role in the torture and murder of civilians in Ethiopia in the 1970s was sentenced today in federal court to serve 22 years in federal prison. John Doe, a/k/a Habteab Berhe Temanu, a/k/a Habteab B Temanu, a/k/a “TUFA”, a/k/a Kefelegn Alemu, a/k/a Kefelegn Alemu Worku, age approximately 62, a Denver resident of Ethiopian descent, was sentenced this morning by Senior U.S. District Court Judge John L. Kane to the lengthy prison term for unlawful procurement of citizenship, making false statements on immigration documents and identity theft, U.S. Attorney John Walsh and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Kumar Kibble announced. The defendant lied on immigration forms about his involvement in the torturing and murder of people in Ethiopia during the Red Terror. Following his prison sentence, Judge Kane ordered Worku to serve 3 years on supervised release, at which time he will begin proceedings with U.S. Immigration authorities. At the sentencing hearing, Judge Kane stripped Worku of his U.S. citizenship he had obtained after immigrating to the U.S. Taking Worku’s citizenship is required based on the conviction of these crimes. The defendant appeared at the sentencing hearing in custody, and was remanded at its conclusion.
The man we now know as Kefelegn Alemu Worku was indicted by a federal grand jury in Denver on August 20, 2012. He was arrested a short time later. A superseding indictment was obtained on June 18, 2013. The defendant was convicted of all counts of the superseding indictment on October 11, 2013 following a five day jury trial before Judge Kane. The counts of conviction were the unlawful procurement of citizenship or naturalization; aggravated identity theft; and fraud and misuse of Visas, Permits and Other Documents. Worku was sentenced today, May 23, 2014.
According to court documents, and arguments at trial and at sentencing, the defendant did knowingly use the identification of another person, Habteab Berhe Temanu, to unlawfully procure citizenship or naturalization. Further, the defendant made false statements in connection with his application for naturalization which was submitted in November 2009, and which statements the defendant re-affirmed under penalty of perjury in March 2010, including falsely identifying himself as Habteab Berhe Temanu; falsely representing that he was the father of five children; and falsely responding “No” to the question: “Have you ever persecuted (either directly or indirectly) any person because of race, religion, national origin, membership in a particular social group, or political opinion.”
In May 2011, HSI received information from an informant who was a naturalized U.S. citizen, originally a native of Ethiopia, that he had recently encountered a person in Denver who he recognized as Kefelegn Alemu Worku, a prison guard during a period in the late 1970's in Ethiopia known as the “Red Terror.”
In the late 1970's in Ethiopia, Mengistu Haile Mariam assumed unofficial control of the Provisional Military Administrative Committee also known as the Dergue. The Dergue was a committee of nearly 120 military officers that established a Marxist regime and abolished Ethiopia’s Constitution and arrested the former emperor and members of the imperial government for alleged crimes against the Ethiopian people. Mengistu seized full control in 1977 which unleashed a two-year campaign known as the “Red Terror.”
During the Red Terror, tens of thousands of Ethiopian men, women and children suspected of being members or supporters of the anti-Dergue group were arrested, tortured and summarily executed. One prison that held, tortured and killed individuals was known as “Kebele 15" or “Kefetegna 15" which in English roughly translates as “Higher 15.” This prison housed approximately 1500 prisoners who had been imprisoned due to their political opinions and affiliations. During the Red Terror families of the killed or missing were often required to pay the government for the bullet used to kill the family member. Historical accounts indicate that a minimum of 10,000 people were killed in the city of Addis Ababa alone in 1977, with probably comparable numbers in the provinces in 1977 and 1978.
The witness explained that he had become a political prisoner in Ethiopia in 1978 when he was arrested and sent to the Higher 15. He witnessed Worku torture fellow prisoners and learned that other prisoners were being executed at the hands of prison guards, including Worku. The informant managed to escape the prison in September 1979. Two additional Ethiopian refugees who are now naturalized U.S. citizens who testified at sentencing also identified the defendant as Worku and recounted how Worku had personally participated in beating and torturing them at the same prison during the same time period.
HSI agents, using information obtained from the informant, determined that Worku was using the identity of Habteab B. Temanu and living in an apartment in Denver. Immigration records confirmed that Worku, using Temanu’s identity, came to the United States in July 2004 as a refugee. He lived in Denver until his indictment.
“Today, justice was done. By sentencing defendant Worku to the maximum possible term for his crime, Judge Kane sent a stern, determined message that the United States will not allow its generous asylum laws to be manipulated to create a safe haven for murderers and torturers from abroad,” said U.S. Attorney John Walsh. “Our system of justice has successfully removed the defendant from the immigrant community he once terrorized, and in so doing vindicated not only our laws, but the rights of the defendant’s many victims now living here in our country.”
“Homeland Security Investigations aggressively pursues Human Rights and War Crimes Violators like Kefelegn Alemu Worku,” said Kumar C. Kibble, special agent in charge of HSI Denver. “Our HSI investigation and partnership with the U.S. Attorney's Office to prosecute Worku show that we will not allow the United States to become a safe haven for war criminals. In the unlikely event that Worku ever completes his lengthy prison sentence, he will be transferred to ICE custody and placed in deportation proceedings. A federal immigration judge will then determine if he will be deported to Ethiopia.”
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
The defendant was prosecuted by Assistant U.S. Attorney Brenda Taylor.DEA’s Highest Ranking Guatemalan Drug Trafficker Extradited to Face Federal Drug ChargesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Juan Alberto Ortiz-Lopez, a/k/a “Chamale,” a/k/a “Juanito,” (43, San Marcos, Guatemala) has been extradited to the Middle District of Florida to face federal drug trafficking charges. If convicted, he faces a maximum penalty of life in federal prison. The indictment also notifies Ortiz-Lopez that the United States intends to forfeit any and all properties, which are traceable to proceeds of the offenses. Ortiz-Lopez was indicted on February 1, 2011 and arrested on March 30, 2011 by Guatemalan authorities.
Count one of the indictment charges Ortiz-Lopez with conspiring with other persons, including persons who were on board a vessel subject to the jurisdiction of the United States and who were first brought into the United States, at a point in the Middle District of Florida, to possess with the intent to distribute and distribute 5 kilograms or more of cocaine. Count two charges Ortiz-Lopez with conspiring with other persons to distribute 5 kilograms or more of cocaine, knowing and intending that such substance would be unlawfully imported into the United States.
Ortiz-Lopez’s indictment was obtained following a long-term investigation by the Operation Panama Express Strike Force – a multi-agency task force targeting large-scale drug trafficking organizations involved in smuggling shipments of narcotics into the United States. Ortiz-Lopez was designated under the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF) program as a Consolidated Priority Organization Target (CPOT), and was considered by the DEA to be the highest ranking drug trafficker currently operating in Guatemala. For over a decade, Ortiz-Lopez’s drug organization received multi-ton cocaine shipments in Guatemala, which would then be transported through Mexico to the United States, where the cocaine would be further distributed.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until proven guilty.
This case was investigated by the Drug Enforcement Administration (DEA), including DEA’s Guatemala City Country Office, the Federal Bureau of Investigation (FBI), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Coast Guard Investigative Services (USCGIS), the Joint Interagency Task Force – South (JIATF-S), and the U.S. Marshals Service (USMS), with the assistance of the U.S. Department of Justice’s Office of International Affairs and the Government of Guatemala and Guatemalan law enforcement agencies. It will be prosecuted by Assistant United States Attorney Joseph K. Ruddy.
Coordinated Effort Results in Multiple Charges Against Jordanian National and Family MembersRead the Press Release
HOUSTON - A combined federal, state and local investigation has led to the arrest of three Jordanian nationals on federal fraud charges, one of whom is also charged in state district court with murder.
The announcement is being made jointly by United States Attorney Kenneth Magidson and Harris County District Attorney Devon Anderson along with FBI Acting Special Agent in Charge Carlos J. Barron, Special Agent in Charge Robert G. Feldt of the Social Security Administration - Office of Inspector General (SSA-OIG), Houston Police Department (HPD) Chief Charles A. McClelland Jr., Harris County Sheriff Adrian Garcia, Special Agent in Charge Brian Moskowitz of Homeland Security Investigations (HSI), Montgomery County District Attorney Brett Ligon and Montgomery County Sheriff Tommy Gage.
Ali Mahmood-Awad Irsan, 57, a naturalized U.S. Citizen from Jordan and resident of Conroe, was arrested yesterday along with his wife, Shmou Ali Alrawabdeh, 37, also a Jordanian national, and daughter, Nadia Irsan, 30, a U.S. citizen. Ali Irsan and his family members are charged federally with conspiracy to defraud the U.S., theft of public money and benefits fraud. The investigation also led to charges against Ali Irsan for murder in state district court.
“The filing of both federal and state charges in this matter demonstrates the outstanding coordination between our offices and with all of the exceptional federal, state and local law enforcement partners working the investigation,” said Magidson. “This matter is a true testament of everyone’s dedication to working together and ensuring those suspected of crimes are properly charged.”
“We never forgot about this case. We will continue to work with all our law enforcement partners to make sure justice prevails,” said Anderson. “This investigation into the murder of Gelareh Bagherzadeh is far from over.”
“It is precisely these types of violent crimes the FBI will continue to address in conjunction with our local, state and federal law enforcement partners,” said Barron. “We will ensure all law enforcement resources and capabilities are brought to bear to safeguard our community.”
The federal criminal complaint was unsealed this morning in federal court in Houston. The indictment charging Ali Irsan with murder was filed in state district court yesterday.
The murder charge alleges Ali Irsan intentionally or knowingly caused the death of Gelareh Bagherzadeh on Jan. 15, 2012, by shooting her with a firearm.
Ali Irsan is not expected to personally appear in federal court today. The other two are set for an initial appearance at 2:00 p.m. before U.S. Magistrate Judge Nancy Johnson.
The charges in the federal criminal complaint allege Ali Irsan and his wife falsified documents in order to receive Social Security disability benefits with the assistance of Nadia Irsan. Ali Irsan and his family allegedly secreted assets, such as real estate, vehicles and currency, which would make him and his wife ineligible to receive benefits. Nadia Irsan, who lives with her father and is unemployed, allegedly maintained a bank account with more than $150,000 in cash for her father, which was separate from the benefits received from the SSA. The family also purchased several pieces of real estate and vehicles with cash.
“This investigation is a fine example of collaborative efforts of federal, state and local law enforcement,” said Feldt. “SSA-OIG will vigorously investigate and bring to justice, those individuals who intentionally defraud SSA programs.”
If convicted of any of the federal fraud charges, the three family members face up to 10 years in prison and a possible $250,000 fine. If convicted of murder in state district court, Ali Irsan also faces up to life in prison and a $10,000 fine.
The joint investigation was a coordinated effort conducted by the U.S. Attorney’s Office, Harris County District Attorney’s Office, FBI, HPD, Harris County Sheriff’s Office, SSA-OIG, HSI, Montgomery County District Attorney's Office and Montgomery County Sheriff's Office.
Assistant U.S. Attorney James McAlister is handling the federal prosecution, while Assistant District Attorneys Tammy Thomas and Connie Spence are prosecuting Ali Irsan on the murder charge.
A defendant is presumed innocent unless convicted through due process of law.Colfax Treating Company Pleads Guilty to Charge of Negligent Discharge of Waste into Pineville Sewer SystemRead the Press Release
ALEXANDRIA, La. –United States Attorney Stephanie A. Finley announced today that Colfax Treating Company, LLC pleaded guilty before U.S. District Judge Dee D. Drell, to one count of negligent discharge of waste materials in violation of its daily limit permit. Company representative, Johnathan Martin, pleaded guilty on the company’s behalf at the hearing.
According to evidence presented at the guilty plea, Colfax Treating Company, a wood treating facility in Pineville, La., negligently discharged pentachlorophenol on June 13, 2008, into Pineville’s sewer system, which leads to the publicly-owned water treatment works. The company discharged 7.1 milligrams per liter of the chemical in violation of the Clean Water Act. The permitted discharge amount is 5.64 milligrams per liter, which is a difference of 1.46 milligrams per liter. Pentachlorophenol is used in the company’s wood treating process.The minimum fine for the illegal discharge from the company’s property is $2,500 per day of violation, with a maximum fine of $25,000 per day of violation. Sentencing is set for August 1, 2014.
“Our environment matters, “Finley stated. “My office will continue to hold accountable those who pollute our air, land and water. Companies and their employees cannot participate in dangerous activities that place the general public in harm’s way. Hopefully this case serves as a deterrent to those who would ignore the environmental laws of this nation and state.”
“The people of Pineville, like other communities, expect a sewage treatment system that is reliable and safe,” said Ivan Vikin, Special Agent in Charge of EPA’s Criminal Investigation Division in Louisiana. “When companies violate pre-treatment rules, improperly discharged waste can sicken people, injure wildlife, and damage expensive equipment. Today’s plea demonstrates that companies will be held responsible for environmental crimes that endanger communities.”
“Pre-treatment programs are in place throughout many of the cities in Louisiana,” said Louisiana DEQ Secretary Peggy Hatch. “These programs place limits on the types and amounts of pollutants that businesses can safely discharge to the city sewers. Negligently violating pre-treatment limits is a serious issue, and we will continue to work with our federal partners at EPA CID to address and prosecute these types of crimes.”
The criminal investigation divisions of the U.S. Environmental Protection Agency and Louisiana Department of Environmental Quality, along with the FBI, conducted the investigation. Assistant U.S. Attorney Joseph G. Jarzabek prosecuted the case.
Cedar Rapids Man Pleads Guilty to Possession of A Firearm by A FelonRead the Press Release
A man who unlawfully possessed a firearm pled guilty today in federal court in Cedar Rapids.
Ramius Hardiman, age 21, from Cedar Rapids, Iowa, was convicted of one count of possession of a firearm by a felon.
At the plea hearing, Hardiman admitted that on May 8, 2013, he possessed a Taurus 9mm pistol. Hardiman is prohibited from possessing firearms due to his felony conviction for Involuntary Manslaughter in October 2011.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Hardiman remains in custody of the United States Marshal pending sentencing. Hardiman faces a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, $100 in special assessments, and three years of supervised release following any imprisonment.
This case is being prosecuted as part of Project Safe Neighborhoods, a cooperative local, state and federal program aimed at the enhanced prosecution of gun crimes. The case is being prosecuted by Assistant United States Attorney Daniel C. Tvedt and was investigated by the Cedar Rapids Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, and Firearms.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-CR-37.
Bullhead Man Charged with Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bullhead, South Dakota, man has been indicted by a federal grand jury for Sexual Abuse of a Person Incapable of Consent.
Cody Long Chase, age 36, was indicted on May 13, 2014. He appeared before U.S. Magistrate William D. Gerdes on May 20, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is any term of years up to life in custody and/or a $250,000 fine, a mandatory minimum term of 5 years of supervised release, and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about April 26, 2014, Long Chase engaged and attempted to engage in a sexual act with an adult female victim, who, at the time, was incapable of declining participation in and communicating an unwillingness to engage in the sexual act.
The charge is merely an accusation and Long Chase is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Law Enforcement Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Long Chase was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Braham Man Charged with Mailing Threatening CommunicationsRead the Press Release
MINNEAPOLIS— A 45-year old Braham man was indicted yesterday for mailing threatening letters. Johnnie Earl Long was charged with one count of False Information and Hoaxes and six counts of Mailing Threatening Communications.
According to the indictment, in November 2013, Long allegedly mailed a series of threatening letters to numerous officials at the Pine County Courthouse. Although these letters contained a white powder that ultimately proved harmless, the letters suggested the powder contained a lethal pathogen.
If convicted, Long faces a potential maximum penalty of five years in prison on the false information count and five years on each threat count. Any sentence that may be imposed in this case would be determined by a federal district court judge.
This case is the result of an investigation by the Pine County Sheriff’s Office and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorneys Andrew R. Winter and Charles J. Kovats, Jr.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.
Bloods Gang Member Pleads Guilty <br /> to Racketeering Conspiracy in TennesseeRead the Press Release
Kenneth Gaddie, aka K.G., 24, of Nashville, Tennessee, pleaded guilty to one count of racketeering conspiracy in federal court in Nashville, announced Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney David Rivera for the Middle District of Tennessee and Special Agent in Charge Jeffrey L. Fulton for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Nashville Field Division.
According to the plea agreement, from 2006 through December 2011, Gaddie was a member and associate of the Bloods gang. He and other known Bloods gang members committed multiple acts of murder, robbery, and narcotics trafficking on behalf of the gang.
Gaddie and numerous Bloods gang members met at various locations in the Nashville area, including Shelby Park, Cedar Hill Park and the Galaxy Star Drug Awareness and Gang Prevention Center, on a regular basis to, among other things, report on gang-related business, collect dues, commit disciplinary actions against fellow gang members, discuss acts of violence against rival gang members and initiate or “jump in” new members by beating them.
Further according to the plea agreement, on June 25, 2008, Gaddie shot and wounded an individual in furtherance of the Bloods gang’s criminal enterprise. Less than one month after this incident, on July 17, 2008, Gaddie and others shot at another individual.
Thirty-seven individuals have pleaded guilty or have been convicted at trial in the Middle District of Tennessee to various crimes related to their involvement in the Bloods gang. Gaddie is the final defendant to be convicted of racketeering offenses in connection with this investigation. He is scheduled to be sentenced on Aug. 21, 2014.
The investigation was a joint operation conducted by the ATF; the Metropolitan Nashville Police Department; U.S. Marshals Service; the LaVergne, Tennessee, Police Department; and the Davidson County, Tennessee Sheriff’s Office. The case was prosecuted by Trial Attorney Kevin L. Rosenberg of the Criminal Division’s Organized Crime and Gang Section, Assistant U.S. Attorney Scarlett S. Nokes of the Middle District of Tennessee, and former Trial Attorney Cody Skipper of the Organized Crime and Gang Section.Battle Creek Man Pleads Guilty to Federal Firearms ChargesRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick A. Miles, Jr. announced today that Vincent Isaac-Peter Jones, age 28, of Battle Creek, pled guilty before U.S. District Judge Robert Holmes Bell to possessing two pistols as a convicted felon and possessing a third pistol in furtherance of heroin trafficking. Jones faces penalties of up to ten years in prison for the former offense and up to life in prison for the drug-related crime.
On January 28, 2014, Jones engaged the Battle Creek Police Department in a high-speed chase, which ended when his vehicle crashed into a snow bank. After a foot pursuit, he was apprehended and found to be carrying two loaded .45 caliber pistols. On February 19, 2014, after bonding out on state charges related to these offenses, Jones was again encountered by the Battle Creek Police Department and found in possession of a loaded .40 caliber pistol, $1,200 in cash, and heroin intended for sale.
In March 2014, Jones was indicted by a federal grand jury for possessing the .45 caliber pistols as a convicted felon and possessing the .40 caliber pistol in furtherance of drug dealing. Jones pled guilty to these charges. He was also charged with possessing heroin with intent to sell it in April 2013 and July 2013 and with possessing a fourth handgun in August 2013, but, in accordance with a plea agreement, these other charges will be dismissed at sentencing. Three of the four firearms had been reported stolen.
This case resulted from a coordinated investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Battle Creek Police Department’s Gang Suppression Unit and Special Investigations Unit.
U.S. Attorney Miles said, “Drugs and stolen guns are a toxic mix, which is only made worse when they are possessed by convicted felons. Battle Creek and West Michigan neighborhoods are safer after eliminating these guns and drugs.”
Sentencing has been scheduled for October 1, 2014. This case is being prosecuted by Assistant U.S. Attorney Russ Kavalhuna.
END
Alaska Plastic Surgeon Indicted on Tax Evasion Charges for Concealing Bank Accounts in Panama and Costa RicaRead the Press Release
The Justice Department and Internal Revenue Service (IRS) announced today that a federal grand jury in Anchorage, Alaska, returned a superseding indictment yesterday charging Michael D. Brandner, an Anchorage physician specializing in plastic surgery, on three counts of tax evasion. Brandner has also been charged with seven counts of wire fraud in an indictment returned in September 2013.
According to the superseding indictment, Brandner engaged in various activities to evade his taxes for 2008, 2009 and 2010, including making false and misleading statement to IRS special agents and filing false tax returns for each of the three years. In the three false returns, Brandner failed to report the existence of financial accounts in Panama and Costa Rica over which he had signature authority, and also failed to report foreign interest income of more than $9,000 for 2008, more than $150,000 for 2009, and more than $150,000 for 2010. The indictment also alleges that Brandner attempted to evade more than $600,000 in federal income taxes over the three years.
According to court documents, Brandner engaged in a scheme to hide and conceal millions of dollars of assets from the Alaska courts and from his wife of 28 years who was divorcing him. Shortly after the divorce was filed, Brandner left Alaska and drove to Central America after converting assets into five cashier’s checks worth over $3,000,000.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, Brandner faces a statutory maximum sentence of five years in prison for each of the three tax evasion charges and a statutory maximum sentence of 20 years in prison for each of the seven wire fraud charges.
The case was investigated by IRS-Criminal Investigation and by Homeland Security Investigations and is being prosecuted by Trial Attorney Ignacio Perez de la Cruz of the Justice Department’s Tax Division and Assistant U.S. Attorney Bryan Schroder for the District of Alaska.
Thursday 22 May 2014
Woman Pleads Guilty to Theft of Government FundsRead the Press Release
ROME, Ga. - Margie Sue Goad has pleaded guilty in federal court to theft of government funds for stealing her granddaughter's Social Security benefits.
“The defendant was her granddaughter’s only family. She betrayed the child by relinquishing her into state custody and then stealing her benefits” said United States Attorney Sally Quillian Yates. “Goad’s guilty plea cannot undo the harm done to her granddaughter. It does, however, show our commitment to justice and it should serve as a deterrent to others.”
“Stealing Social Security benefits intended for the care of a child is a shameful, selfish crime,” said Thomas Caul, Special Agent in Charge, Office of the Inspector General for the Social Security Administration. “I’m gratified to see this defendant brought to justice and grateful to the U.S. Attorney for ensuring that Ms. Goad’s actions did not go unpunished. Hopefully others charged with the care of children, and receiving Social Security benefits to provide that care, will take notice that there are serious consequences for violating that trust.”
According to United States Attorney Yates, the charges and other information presented in court: Marie Goad was appointed representative payee for her minor granddaughter’s Title II Social Security Survivor’s Benefits and Title XVI Supplemental Security Income (SSI) in September 2002. She was required to use these benefits solely for the care and support of her granddaughter. Her granddaughter began receiving SSB from her deceased father's account in 1994, and SSI in 2001. Goad was required to complete yearly reports for the Social Security Administration (SSA) confirming that her granddaughter resided with her.
Goad did not notify SSA that she relinquished permanent physical and legal custody of her granddaughter to DFACS in 2002, and that the child was growing up in foster care and group homes. Instead, Goad continued to receive her granddaughter's benefits money, and spent the money on herself, and not on the child.
Sentencing for Goad, 68, of Dalton, Ga., is scheduled for July, 31, 2014, at 10:00 a.m. before United States District Judge Robert L. Vining Jr.
This case is being investigated by the Social Security Administration - Office of the Inspector General.
Special Assistant United States Attorney Diane C. Schulman is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Rome Division is http://www.justice.gov/usao/gan/.
Wichita Trucker Sentenced to 12+ Years in Child Pornography CaseRead the Press Release
WICHITA, KAN. - A truck driver from Wichita was sentenced Thursday to 150 months in federal prison for transporting child pornography, U.S. Attorney Barry Grissom said.
Joshua David Bellah, 40, Wichita, Kan., pleaded guilty to one count of interstate transportation of child pornography. In his plea he admitted that on Oct. 22, 2013, he traveled from Oklahoma to Kansas with laptops containing several thousand images of minors engaged in sexually explicit conduct. He had previously used a variety of free email accounts to obtain and exchange child pornography while he was traveling as an over-the-road truck driver.
Grissom commended the Immigration and Customs Enforcement’s Homeland Security Investigations, the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
Virginia Man Sentenced to 43 Months in Federal Prison for Trafficking Firearms to ConnecticutRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JAWAWN RICARDO HALE, 31, of Roanoke, Va., was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 43 months of imprisonment, followed by three years of supervised release, for his participation in a conspiracy to traffic firearms from Virginia to Connecticut, and possessing firearms as a convicted felon.
According to court documents and statements made in court, this matter stems from an investigation conducted by the New Haven Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Between June and August 2012, HALE sold a total of seven firearms and a quantity of ammunition to an individual in Connecticut. HALE acquired the firearms from Charles Matthew Wilson and others in Virginia, and then transported the firearms to Connecticut. Leshel Branch, of New Haven, assisted HALE in the transportation and distribution of the firearms.
On August 23, 2012, HALE, Wilson and Branch traveled to a location in New Haven where HALE sold two firearms to an individual in exchange for $2,400. Shortly after the transaction, the car carrying the three defendants was stopped by law enforcement. $2000 was recovered from the interior of the car and $400 was seized from Wilson’s person.
HALE has been detained since his arrest on August 23, 2012. On November 9, 2012, he pleaded guilty to one count of conspiracy to engage in the business of dealing in firearms without a license and one count of possession of firearms by a convicted felon.
In 1999, HALE was sentenced in Virginia state court to 40 years of incarceration for second degree murder, and a consecutive three years for use of a firearm in the commission of a murder. The sentencing judge suspended 29 years of the sentence and imposed a 15-year term of probation. HALE was released from prison in November 2011. After his release from federal custody, HALE faces violation of probation proceedings in Virginia, which could result in a sentence of up to 29 years of state incarceration.
Wilson and Branch also pleaded guilty. On April 17, 2013, Wilson was sentenced to 60 months of imprisonment, and on November 25, 2013, Branch was sentenced to five years of probation.
This case was prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Two Poachers Receive Jail Time for Illegally Harvesting 147 Ginseng RootsRead the Press Release
ASHEVILLE, N.C. - U.S. Attorney Anne M. Tompkins announced that two men have been convicted and sentenced in U.S. District Court for the illegal harvesting of ginseng. Joining U.S. Attorney Tompkins in making today’s announcement is Deborah Flowers, Acting Chief Ranger of the Blue Ridge Parkway.
Daniel Mizell, 26, of Green Mountain, N.C. was sentenced today to serve 30 days in jail for engaging in business operations on the Blue Ridge Parkway and entering a closed area on the Blue Ridge Parkway during the federal government shutdown in October 2013. His co-defendant, Derek Vann Whitson, 33, of Mars Hill, N.C. was sentenced on March 27, 2014, to 90 days in jail for conspiring to harvest ginseng.
According to court documents and statements made in court:
On October 13, 2013, Whitson and Mizell called 9-1-1 for assistance after they became lost in the Asheville Watershed which borders the Blue Ridge Parkway. During the course of a search and rescue mission, approximately 35 individuals from various local, state and federal agencies responded to assist in finding the two missing men. On October 14, 2013, Asheville Watershed employees located Whitson and Mizell, who were found to be in possession of three pounds of freshly dug ginseng (147 roots). Whitson admitted ownership of two pounds of ginseng roots and stated Mizell dug the other one pound. Mizell and Whitson also admitted to entering the Watershed from the Parkway. At sentencing, U. S. Magistrate Judge Dennis L. Howell took particular note of the amount of public resources used during the search to locate two individuals, who became lost while engaged in criminal activity for personal profit.
American ginseng is on the list of the Convention on International Trade of Endangered Species (CITES). The Division of Scientific Authority, U.S. Fish & Wildlife Service is the regulatory agency that evaluates the biological and management status of wild American ginseng throughout its native range. The Division issues an annual or biennial report detailing if any harvest conditions need to be modified to ensure the sustainable harvest of wild native ginseng.
National Park, U.S. Forest Service and Asheville Watershed lands have been severely impacted by ginseng poachers in Western North Carolina. Permits to collect ginseng root in National Forests are issued annually through the U.S. Forest Service from September 1 to September 15. Permits are not available in National Park lands such as the Blue Ridge Parkway and Great Smoky Mountains National Park where even the possession of American ginseng is prohibited. Permits to collect ginseng roots are also unavailable for the Asheville Watershed and that area is closed to entry by the public.
The investigation of the cases was handled by the rangers of the Blue Ridge Parkway and officers and employees of the City Of Asheville. The prosecution was handled by the U.S. Attorney’s Office in Asheville.
Two Men Convicted in Fraudulent $24 Million Scheme Involving Sale of Iraqi CurrencyRead the Press Release
Two men from the Toledo area were convicted for their roles in the operation of a $24 million fraud scheme involving the sale of Iraqi dinar currency and non-existent hedge funds, and falsely representing that a member of their organization was a decorated Marine who was wounded in combat, announced Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge of IRS Criminal Investigation, Cincinnati Field Office.
Bradford L. Huebner, 66, of Ottawa Hills, Ohio and Charles N. Emmenecker, 67, of Sylvania, Ohio, were convicted of conspiracy to commit wire fraud and wire fraud following a two-week trial in U.S. District Court in Toledo. Huebner was also convicted on 40 additional counts of money laundering and structuring.
A third defendant, Michael L. Teadt, 67, of Maumee, Ohio, was convicted on one count of mail fraud.
The men are expected to be sentenced in October.Investors lost approximately $23.8 million from dinar sales and more than $700,000 from the sale of non-existent hedge fund “seats” and “placements” as a result of the defendants’ conduct, according to court documents and trial testimony.
“The trial evidence showed that these defendants swindled many people out of their hard-earned money with grandiose fraud claims and offensive lies,” said U.S. Attorney Dettelbach. “From misrepresenting U.S. and global fiscal realities to lying about a defendant's military record, these defendants' conduct not only broke the law, but offended basic concepts of decency.”
“When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime,” said Special Agent in Charge Enstrom. “Today’s verdict reinforces our commitment to every taxpayer that we will identify and prosecute those who promote illegal financial transactions.”
Rudolph M. Coenen, 47, of Jacksonville, Florida, previously pleaded guilty to crimes related to his role in the conspiracy.
Beginning about August 2010, Huebner, Coenen, and Emmenecker conspired to operate the “BH Group” in Toledo and “Bayshore Capital Investments” in Jacksonville in order to defraud investors through investments in the Iraqi dinar currency and two non-existent hedge funds.
The conspirators promoted the dinar and non-existent hedge funds through the dissemination of a series of material falsehoods conveyed primarily through weekly interstate conference calls and through the conspirators’ web site, according to court documents and trial testimony.
False claims included statements about the U.S. Treasury Department’s holdings of dinar and involvement in the Iraqi dinar investment market, according to court documents.
Additional material false statements made by the defendants include, but are not limited to, the portrayal of Coenen as a former vice president at JP Morgan Chase and a former Marine who was awarded the Purple Heart after being wounded in Iraq during Operation Desert Storm.
Coenen worked for JP Morgan Chase for one day as an account executive/loan officer. He never served in the first Gulf War, was never wounded in combat and never received a Purple Heart, according to court documents.
This case was prosecuted by Assistant U.S. Attorneys Gene Crawford and Matthew W. Shepherd following an investigation by the Internal Revenue Service – Criminal Investigation.
Two Men Admit Roles in Armed Robbery of New Jersey Target Store on ‘Black Friday’ 2012Read the Press Release
TRENTON, N.J. – Two New Jersey men admitted this week to participating in an armed robbery of a Target Store in Union, N.J., on “Black Friday” in November 2012, U.S. Attorney Paul J. Fishman announced today.
Maryland Liggins III, 29, of Newark, pleaded guilty today before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with conspiracy to commit a Hobbs Act robbery. On May 20, 2014, Darrell A. Carter, 24, of Irvington, N.J., pleaded guilty before Judge Thompson to an information charging him with one count of Hobbs Act robbery and one count of using a firearm in furtherance of a crime of violence.
Carter, Liggins and two other men – Lavell Jones, 28, of East Orange, N.J., and DaQuaan Vaughn, 36, of Newark – were arrested on June 19, 2013, and charged by complaint in connection with the Target robbery. On April 29, 2013, a federal grand jury returned an indictment against Jones and Vaughn charging both men with one count of Hobbs Act robbery, and charging Vaughn with one count of using a firearm in furtherance of a crime of violence.
According to documents filed in this case and statements made in court:On Nov. 23, 2012, Carter and Liggins allegedly participated in an armed robbery of the Target store on Springfield Avenue in Union on Black Friday – the day after Thanksgiving – which is considered to be one of the busiest shopping days of the year. Carter and Vaughn allegedly entered the store and robbed the store’s employees at gunpoint and Liggins served as the getaway driver. Jones allegedly posed as a shopper and served as a lookout inside the store.
While in the store, Carter and Vaughn restrained Target employees with zip ties and robbed them at gunpoint, stealing more than $50,000 from a cash cart and safe located in the cash room. The two men then fled the store and ran out to a vehicle driven by Liggins that was parked on the shoulder of nearby Route 78.
The charge of Hobbs Act robbery is punishable by a maximum potential penalty of 20 years in prison. The charge of using a firearm in furtherance of a crime of violence carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years, which must run consecutively to any other prison term. Each of these counts also carries a maximum fine of $250,000. Sentencing for Liggins is scheduled for Sept. 25, 2014; sentencing for Carter is scheduled for Sept. 24, 2014.U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the guilty pleas. He also thanked the Union Police Department for its role in the investigation and Target corporate security for its cooperation.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Criminal Division in Trenton, and Assistant U.S. Attorney Jonathan Romankow, acting deputy chief of the U.S. Attorney’s Office General Crimes Unit.
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Defense counsel:Carter: Peter Carter Esq., Newark
Liggins: Joseph Rotella Esq., Newark
Vaughn: Timothy Donohue Esq., West Orange, N.J.
Jones: Richie Roberts Esq., NewarkLiggins, Maryland Information
Carter, Darrell InformationTwo Logan Businessmen Sentenced for Roles in Arson SchemeRead the Press Release
Glick and Thompson To Spend Years In Prison For Million-Dollar Insurance Scam
CHARLESTON, W.Va. – Two men were sentenced in federal court yesterday in connection with a Logan arson scheme, U.S. Attorney Booth Goodwin announced. James Gregory Glick, 44, of Logan, was sentenced to seven years, three months in prison, while William Jamey Thompson, 45, of Chapmanville, was sentenced to five years in prison, both for a conspiracy to burn a building in downtown Logan and fraudulently collect the insurance proceeds. In January 2012, Glick purchased a commercial building located at 111 Stratton Street in Logan for $50,000, across the street from the restaurant he owned and operated, the 317 Steakhouse (“317”). He then worked with Thompson, owner of the insurance agency Baisden & Associates, to obtain a $1 million insurance policy on the property from General Star Indemnity Company (“General Star”). Thompson, in exchange for placing coverage, received $50,000.During the early hours of February 1, 2012, co-conspirator Guy R. Miller, Jr., 40, of Logan, enlisted the assistance of Shawn C. Simon, 41, of Charleston, and Michael D. Williams, 44, of Logan, to help torch the building. Williams spread approximately fifteen gallons of fuel throughout the first floor of the building. When he lit the match, the fumes ignited, creating an explosion that blew the top of the building’s exterior across the street. The three culprits were caught on 317’s security camera; Glick had Miller and Simon destroy the restaurant’s digital video recorder in order to conceal the crime.
Without sufficient evidence of the arson, General Star paid Glick the $1,010,000 insurance policy proceeds in May 2012, and Glick began sharing the money with his co-conspirators. In June 2013, criminal investigators from the Internal Revenue Service, working with the West Virginia State Police, seized the remaining $450,000 in fraud proceeds from accounts controlled by Glick. Over the course of the next six weeks, the agents developed cooperating witnesses, who obtained audio and video recordings of efforts by Glick to obstruct the federal grand jury investigation by paying Miller $8,000 to provide false testimony if he was called as a witness.
The conspirators were indicted in late August 2013 and ultimately pled guilty to their respective roles in the conspiracy to commit arson and to defraud General Star.
In addition to the $1,010,000 restitution order to repay General Star, the Court also ordered Glick and Thompson to reimburse the City of Logan $3,900 for emergency personnel response costs.
Miller is set to be sentenced on May 28, 2014. Williams and Simon will be sentenced on May 29, 2014.
The West Virginia State Police and the IRS Criminal Investigation Division conducted the investigation. Assistant United States Attorney Thomas Ryan is in charge of the prosecution. United States District Judge Thomas E. Johnston imposed today’s sentences.
Two Individuals Plead Guilty to Securities Fraud, Money Laundering in Connection with Investment SchemeRead the Press Release
Persuaded Investors To Invest Ira Funds In Residential Real Estate Project In Vernal, UtahSALT LAKE CITY - Martin A. Pool, age 44, of Atlanta, Georgia, and Armand R. Franquelin, age 57, of Liberty, Utah, pleaded guilty to securities fraud and money laundering Wednesday afternoon in U.S. District Court in Salt Lake City. Pool and Franquelin were charged in a three-count felony information filed in April.
As a part of a plea agreement reached with federal prosecutors, Pool and Franquelin admitted that from 2006 to 2010, they participated in persuading investors to convert their traditional IRAs to self-directed IRA accounts and invest their funds in a residential real estate project known as Haven Estates in Vernal, Utah. This was accomplished by inducing the investors to direct their funds to their company, The Elva Group, in return for promissory notes from Elva with a promise of monthly interest payments at annual rates between 8 percent and 20 percent. Pool and Franquelin admitted they told investors that their funds would be used to develop Haven Estates and promised to secure their loans with first lien positions in property at Haven Estates. In fact, no investors ever received any collateral or any interest in real property in Haven Estates or anywhere else.
In reality, the plea agreement says, investors’ funds were used for purposes other than the development of Haven Estates. Investors were not told of encumbrances already in place on Haven Estates. When Elva began defaulting on the mortgage loan for Haven Estates, investors were not immediately informed. Eventually, Haven Estates was foreclosed.
Pool and Franquelin admitted that these actions were taken in connection with the investors’ purchase of securities, namely the promissory notes and loan agreements. They also admitted that these representations were made for the purpose of defrauding investors.
According to the plea agreement, investors’ funds were used by Pool and Franquelin and their associates for their personal benefit and to pay interest to earlier investors as Ponzi payments. The Ponzi payments had the effect of lulling the earlier investors, persuading them to leave their funds in the company and inducing them to renew their promissory notes from time to time. The payments also enticed new investors to invest.
Pool and Franquelin each plead guilty to one count of securities fraud and one count of money laundering.
As a part of the plea agreement, Pool and Franquelin agreed to pay restitution of $9,031,336.83 to victims of the fraud, including victims of uncharged relevant conduct. Alabama victims invested more than $500,000 in this scheme.
The case was a multi-jurisdictional investigation by special agents of the FBI and IRS-Criminal Investigation; the Utah Department of Commerce, Division of Securities; and the Alabama Securities Commission with assistance from the office of Baldwin County, Alabama, District Attorney Hallie S. Dixon (28th Judicial Circuit).Alabama Securities Commission Director Joseph Borg, said, "The Alabama Securities Commission is proud to have joined the collaborative efforts of the federal and state law enforcement agencies and their professional staff members to see that justice is served for the victims in this important case. The outcome resulted from a team approach between the U.S. Attorney's Office in Utah, the Utah Department of Commerce's Division of Securities, the FBI, the IRS, and the ASC Enforcement and Legal Divisions to send a message that this financial crime, and others like it, will not be tolerated and will be prosecuted to the fullest extent of the law."
Pool is scheduled to be sentenced July 31, 2014, at 2:30 p.m. Franquelin’s sentencing is set for Aug. 18, 2014, at 2:30 p.m. Sentences will be imposed by U.S. District Judge Dale A. Kimball. As a part of Pool’s plea agreement, prosecutors and the defendant agreed to recommend the Court impose a 78-month sentence. The sentence is subject to the approval of the Court. Franquelin’s sentence will be determined at the sentencing hearing.
Two Baltimore Men Plead Guilty to Armed Robbery ConspiracyRead the Press Release
Baltimore, Maryland – Edward Lee, age 43, and Devan Martin, age 41, both of Baltimore, Maryland, pleaded guilty today to conspiring to rob a hair salon and its owner.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to Lee and Martin’s plea agreements, on December 1, 2012, Lee, Martin and co-conspirator Michael Gwaltney, were seen via the Baltimore Police City Watch camera system approaching a man who was entering his vehicle, on Carrollton Avenue in Baltimore. Through the City Watch Camera, the monitoring officer was able to observe Lee, Martin and Gwaltney having a conversation with the individual. The conversation appeared to turn into an argument and the victim was seen handing money to Gwaltney, while Lee patted the victim down. As Lee turned away from the victim, the monitoring officer saw a gun in his hand. Lee and Gwaltney then escorted the victim across the street, while Martin rummaged through the victim’s vehicle and removed a briefcase from the trunk. As Lee and Gwaltney entered a building in the block, the City Watch operator saw a gun in Gwaltney’s waistband.
The City Watch operator called for police units to respond to the area. As the units responded, they stopped Martin approximately one-half block from the car with the briefcase. The officers then proceeded into the block and eventually located the victim leaving his wife's business, a hair salon. The victim advised officers that Lee and Gwaltney had taken him into the business and demanded drugs and money from him. The victim stated that after seeing the officers in the block, Gwaltney ordered the victim go out and tell the officers that everything was fine. Eventually, both Gwaltney and Lee exited the business, were placed under arrest, and the business was searched. Officers recovered a .38 caliber revolver, as well as clothing that matched the items worn by Gwaltney as he entered the location. In the yard adjacent to the business, officers recovered a 9mm semi-automatic handgun.
Lee, Martin and Gwaltney had agreed to carry out the robbery of the victim and the hair salon business.Lee, Martin and the government have agreed that if the Court accepts their plea agreements Lee will be sentenced to 10 years in prison and Martin will be sentenced to between five and six years in prison. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for Lee on August 13, 2014, and for Martin on September 4, 2014. Michael Gwaltney, age 39, of Baltimore, previously pleaded guilty to his role in the robbery and is awaiting sentencing.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James T. Wallner and Clinton J. Fuchs, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Twenty Million Dollar Stolen Identity Refund Fraud Ring IndictedRead the Press Release
Identities Stolen from Fort Benning, various Alabama State agencies, and a call center
Montgomery, Alabama– Tracy Mitchell, of Phenix City, Alabama; Dameisha Mitchell, of Phenix City, Alabama; Latasha Mitchell, of Phenix City, Alabama; Keisha Lanier, of Seale, Alabama; Sharondra Johnson, of Phenix City, Alabama; Cynthia Johnson, of Phenix City, Alabama; Mequetta Snell-Quick, of Phenix City, Alabama; Talarious Paige, of Phenix City, Alabama; and Patrice Taylor, of Midland, Georgia were indicted for their roles in a $20 million dollar Stolen Identity Refund Fraud (“SIRF”) conspiracy, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama following the unsealing of the superseding indictment.
According to the Superseding Indictment, between January 2011 and December 2013, the Defendants ran a large-scale identity theft ring in which they filed over 7,000 false tax returns that claimed in excess of $20 million in fraudulent claims. The Defendants obtained stolen identities from various sources to be used in filing false returns. Tracy Mitchell worked at the hospital at Fort Benning, Georgia. As a hospital employee, Mitchell had access to the identification data of military personnel, including soldiers who were deployed to Iraq and Afghanistan. Tracy Mitchell and her daughter, Latasha Mitchell, also obtained stolen identities from an Alabama state agency. Keisha Lanier obtained stolen identities from the Alabama Department of Corrections. Talarious Paige and Patrice Taylor worked in a call center for a Columbus, Georgia company and stole identities. Paige, in turn, sold those identities and they were used by Tracy Mitchell, Keisha Lanier, and others to file false tax returns.
In order to file tax returns, according to the Superseding Indictment, the Defendants obtained several Electronic Filing Numbers (“EFIN”) in the names of sham tax businesses. On behalf of those sham tax businesses, the Defendants applied for bank products from various financial institutions, which mailed blank check stock to the Defendants’ homes. Tracy Mitchell, Latasha Mitchell, Keisha Lanier, Mequetta Snell-Quick, and others used the sham tax businesses and stolen identities to file false tax returns.
Furthermore, according to the Superseding Indictment, the Defendants directed anticipated tax refunds to prepaid debit cards, to U.S. Treasury Checks, and to financial institutions which in turn issued the refunds via checks or prepaid debit cards. As to the refunds sent through the financial institutions, the Defendants simply printed out the refund checks from the check stock sent to them. Regarding the U.S. Treasury Checks, the Defendants directed those checks to be mailed to several addresses in Alabama and then obtained them from the mail. To coordinate the cashing of the refund checks, the Defendants sent various text messages between themselves. The Defendants cashed the fraudulent checks at several businesses located in Alabama, Georgia, and Kentucky. In addition to the conspiracy charge, the defendants are also charged with mail and wire fraud, access device fraud, and aggravated identity theft.
“To steal the identity of a soldier serving his/her country is the lowest form of thievery,” stated U.S. Attorney Beck. “If a soldier serving his country is not safe from identity theft, then none of us are safe from this crime. We will continue our efforts to stamp out this crime. Identity theft affects too many people in our communities and we must use all available resources under the law to destroy it. I want to commend the IRS Criminal Investigations Unit and the U.S. Army Criminal Investigation Command for their dedication to destroying this criminal organization.”
Daniel Andrews, the director of the U.S. Army Criminal Investigation Command's Computer Crime Investigative Unit stated, “Today's indictments are not only a strong testament to our unwavering commitment to aggressively pursue cases of identity theft and protect the men and women serving this nation, but also our equal commitment to work shoulder-to-shoulder with other law enforcement agencies and the DOJ in helping to bring those to justice who commit cyber-crime and identity theft while stealing from the American taxpayer.”
“Identifying, investigating and vigorously prosecuting those individuals involved in tax related identity theft schemes, remains a top priority for IRS Criminal Investigation,” stated Veronica F. Hyman-Pillot, Special Agent in Charge with IRS Criminal Investigation. “These indictments and arrests are just a sample of what is to come as we join forces with our law enforcement partners and the United States Attorney’s office to put an end to identity theft.”
“The problem with identity theft is that the victims don’t know they have been subjected to the crime until well after the fact,” said U.S. Attorney for the Middle District of Georgia, Michael Moore. “The prosecution of this case resulted from the great work of the U.S. Attorney in Montgomery and the Tax Division. I hope it sends a message to both our soldiers and to those who try to take advantage of them – while you are protecting us from bad guys abroad, we will be protecting you from the bad guys at home.”
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, each defendant faces a maximum potential sentence of 10 years in prison for the conspiracy charge, a maximum potential sentence of 20 years in prison for each wire and mail fraud count, a maximum potential sentence of 15 years in prison for each access device fraud count, and a mandatory two-year sentence for each aggravated identity theft count. The defendants are also subject to fines, forfeiture, and mandatory restitution if convicted.
The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation and the Computer Crimes Investigative Unit of the U.S. Army Criminal Investigation Command. Trial Attorney Michael Boteler of the Department's Tax Division and Assistant United States Attorney Todd Brown of Alabama are prosecuting the case. The United States Attorney’s Office for the Middle District of Georgia provided assistance in this matter.Tiverton Resident Faces up to Life in Federal Prison on Drug Trafficking, Firearm ChargesRead the Press Release
PROVIDENCE, R.I. – Ian D. Andrade, 37, of Tiverton, faces statutory penalties of up to life in federal prison when he is sentenced by U.S. District Court Judge John J. McConnell, Jr., on August 7, 2014, having pleaded guilty on Wednesday to trafficking cocaine and possessing a firearm in furtherance of a drug trafficking crime, announced United States Attorney Peter F. Neronha and Newport Police Chief Gary T. Silva.
Andrade was arrested by Newport Police on November 8, 2013, after officers stopped and executed a court authorized search of Andrade’s vehicle which resulted in the seizure of approximately 400 grams of cocaine packaged for sale, a loaded firearm and more than $4,400 in cash.
According to information presented to the court, during the fall of 2013, members of the Newport Police Department Vice Unit were conducting an investigation into Andrade’s alleged drug trafficking activities. Detectives developed information that Andrade was using a vehicle with a hidden compartment inside to facilitate his drug trafficking activities.
According to information presented to the court, on November 8, 2013, members of the Newport Police Department observed Andrade and a juvenile female, his girlfriend’s daughter, enter the vehicle outside a Newport residence and drive away. A uniformed Newport Police officer stopped the vehicle a short time later and advised Andrade of a court authorized search warrant for the vehicle. Andrade turned over two envelopes containing $4,435 in cash.
According to information presented to the court, the vehicle was towed to the Newport Police Department and searched. Investigators seized a loaded handgun and a plastic container with approximately 400 grams of cocaine packaged for sale in quantities consistent with distribution from inside a hidden compartment located behind the front passenger seat.
According to information presented to the court, after being advised of his constitutional rights, Andrade made a recorded statement to investigators admitting to possessing the cocaine and the firearm seized from the vehicle. Andrade told investigators that he used the firearm to protect his drugs. He also stated that the $4,435 in cash seized was drug money.
Possession of cocaine with the intent to distribute is punishable by a statutory penalty up to 20 years in federal prison and a fine of up to $1,000,000. Possessing a firearm in furtherance of a drug trafficking crime is punishable by a statutory penalty of up to life imprisonment with a mandatory minimum sentence of 5 years in federal prison, to run consecutive to the sentence imposed for possession of cocaine with the intent to distribute, and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Pamela E. Chin.The Rhode Island DEA Drug Task Force assisted Newport Police in this matter.
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Contact: 401-709-5357
[email protected]Three St. Thomas Men Sentenced Today for Their Roles in A Drug ConspiracyRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez today sentenced Ignacio Batis- Joseph, age 37, to 70 months of incarceration and five years of supervised release, Omar Norberto James-Byar, age 37, to 46 months of incarceration and five years of supervised release, and Eldry Santos-Guzman, age 33, to 33 months of incarceration and four years of supervised release. Batis-Joseph, James-Byar and Santos-Guzman are residents of St. Thomas, Virgin Islands. Each defendant was sentenced for his role in a drug conspiracy that ended in the seizure of 85 kilograms of cocaine, announced United States Attorney Ronald W. Sharpe and U.S. Drug Enforcement Administration (DEA) Special Agent-in-Charge Vito Guarino.
On December 11, 2013, James-Byar and Batis-Joseph pleaded guilty to conspiracy to possess narcotics with the intent to distribute and Santos Guzman pleaded to the same charges on December 13, 2013.
According to the plea documents filed in court, in August of 2013, Batis-Joseph contacted a DEA Task Force Officer acting in an undercover capacity for the purpose of conducting a transaction involving the sale of 100 kilograms of cocaine. Thereafter, the Page -2- defendant encouraged the officer to travel to St. Thomas in order to purchase the 100 kilograms of cocaine. On September 11, 2013, the officer contacted Batis-Joseph and informed him that he was on his way to St. Thomas and would purchase 10 kilograms of cocaine. Later that day, Batis-Joseph arrived at the Crown Bay Marina in a red Ford Explorer, along with James-Byar and Santos-Guzman. During the meeting with the officer, a red Cost U Less bag that contained approximately 11 kilograms of cocaine was produced by the defendants and given to the officer to inspect. When the officer informed Batis-Joseph that the money was on the way, Batis-Joseph told James-Byar and Santos-Guzman to leave the area. James-Byar and Santos-Guzman were arrested as they attempted to leave the parking lot. Batis-Joseph was arrested at the scene. After the arrest, 74 kilograms of cocaine was found at an apartment in downtown Charlotte Amalie.
U.S. Attorney Sharpe commended the efforts of the DEA which investigated the case. The case was prosecuted by Assistant U.S. Attorney Ishmael A. Meyers, Jr.
Three Men Sentenced for Trafficking Meth in HoustonRead the Press Release
HOUSTON – Roberto Carlos Garza, Alexander Chavez and Martin Loya-Plancarte have all been ordered to federal prison for their roles in a five kilogram methamphetamine deal that occurred on May 18, 2013, announced United States Attorney Kenneth Magidson. Garza, 24, and Chavez, 34, both of Rio Grande City, and Loya-Plancarte, 26, an undocumented alien from Mexico residing in the Houston area, all previously pleaded guilty in the case.
Today, U.S. District Judge Lynn N. Hughes sentenced Loya-Plancarte to a 294-month federal prison term, while Garza and Chavez were ordered to serve 90 and 96 months, respectively. Garza and Chavez will also be required to serve five years of supervised release. Loya-Plancarte, not a U.S. citizen, also received a five-year-term of supervised release but is expected to face deportation proceedings following his release from federal prison.
At the time of their guilty pleas, the men admitted to arranging a methamphetamine transaction on May 17, 2013, for approximately 22 pounds of methamphetamine at a price of $15,000 per pound. The following day, Garza and Chavez each agreed to deliver the drugs to a parking lot near the Houstonian Hotel in Houston.
At approximately 12:58 p.m. on May 18, 2013, agents observed a gray Honda CR-V arrive at the location driven by Chavez with Garza riding as a passenger. Shortly after arrival, agents attempted to take Garza and Chavez into custody. Identifying themselves as law enforcement officers and wearing law enforcement identification, agents ordered them out of the vehicle. Chavez attempted to flee, driving in reverse and striking another vehicle, then driving forward and accelerating rapidly towards two agents who were on foot.
Fearing for his life, one of the agents fired two rounds from his service weapon toward Chavez while attempting to move out of the way and avoid being hit. The agent believed Chavez was attempting to run him over and had no choice but to fire his weapon toward the vehicle to avoid being run over and possibly killed. The rounds appeared to strike Chavez and the CR-V veered to the side, struck two other vehicles and came to a stop.
Garza was then taken into custody and Chavez was treated at the scene until an ambulance arrived and transported him to a hospital for treatment. Agents subsequently seized three plastic containers containing methamphetamine from the rear area of the Honda. The methamphetamine had a net weight of 4.946 kilograms, was 90.1% pure and had been imported into the U.S. from Mexico.
Upon his arrest, Garza made several statements incriminating himself, Chavez and Loya-Plancarte in this methamphetamine transaction. Garza and Chavez each also stated that Loya-Plancarte was the person in Houston who had set up the deal and that they were conducting the transaction in part under his supervision.
All will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case is the result of an investigation conducted by agents from the Drug Enforcement Administration with assistance from the Houston Police Department. Assistant United States Attorney Arthur R. Jones is prosecuting.
Three Men Guilty of Federal Felony Charges for Starting Illegal Campfire in Angeles National Forest That Became Colby FireRead the Press Release
LOS ANGELES – The third man involved in an illegal campfire above Glendora that erupted out of control to become the destructive Colby Fire was found guilty this afternoon of federal criminal charges.
Jonathan Carl Jarrell, 24, was found guilty of a felony offense of unlawfully setting timber afire. After a three-day trial, a jury also convicted Jarrell of a misdemeanor offense of illegally starting a fire. (The jury was unable to reach a unanimous verdict on two other misdemeanor fire-related charges.)
Two other defendants – Clifford Eugene Henry Jr, 22, of Glendora, and Steven Robert Aguirre, 21 – were each found guilty last Friday of four charges (one felony and three misdemeanors) related to the fire.
The Colby Fire started on the morning of January 16. By that evening, the fire had consumed more than 1,700 acres of federal, state, local and private lands. The fire had also destroyed five residences, damaged 17 additional structures, and resulted in injuries to one civilian and two firefighters.
Henry, Aguirre and Jarrell were detained by Glendora Police Officers after they were seen escaping the fire. During interviews with Glendora Police and personnel with the Los Angeles County Fire Department’s Arson Investigations Unit – interviews that the jury heard during the two trials – all three defendants admitted playing a role in the starting of a campfire that started the Colby Fire after wind blew burning paper into the brush in the hills above Glendora.
A United States Forest Service fire investigator determined that the origin of the Colby Fire was at a point near a fire ring built by the three men at a location on federal lands within the Angeles National Forest.
As a result of today’s guilty verdicts, Jarrell faces up to 5½ year in federal prison when he is sentenced by United States District Judge George H. Wu on July 31.
Henry and Aguirre are scheduled to be sentenced by Judge Wu on August 4. They each face a statutory maximum penalty of 6½ years in prison.
The investigation in this case was conducted by the United States Forest Service, the Glendora Police Department and the Los Angeles County Fire Department.
Release No. 14-065
Third Fugitive Extradited from El Salvador to the United States to Face Federal Robbery and Felony Murder Charges in New MexicoRead the Press Release
ALBUQUERQUE – Francisco Melgar-Cabrera, also known as Francisco Malgar-Cabrera, 30, a Salvadoran national, was extradited from El Salvador to the United States on Wednesday, May 21, 2014. Melgar-Cabrera was previously indicted by a District of New Mexico grand jury on Oct. 14, 2010, on multiple charges, including federal robbery and felony murder stemming from an armed robbery and murder in Albuquerque, N.M., in June 2009.
Damon P. Martinez, the Acting U.S. Attorney for the District of New Mexico, Special Agent in Charge Bernard J. Zapor of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Special Agent Carol K.O. Lee of the Albuquerque Division of the FBI, made the announcement.
Melgar-Cabrera, who is charged with multiple counts, including federal robbery and felony murder charges, faces a maximum penalty of life imprisonment if convicted. Melgar-Cabrera will make his initial appearance this morning in the U.S. District Court in Albuquerque and be arraigned on the charges against him.
Melgar-Cabrera and co-defendants Marvin Aguilar-Lopez and Pablo De Leon Ortiz, both Salvadoran nationals, were indicted in Oct. 2009, and charged with armed robbery, felony murder and firearms offenses. The nine-count indictment stemmed from the armed robbery of a Denny’s Restaurant located at 1602 Coors Blvd. NW in Albuquerque on June 20, 2009, and the murder of Stephanie Anderson, a cook at the restaurant.
In April 2010, a ten-count superseding indictment was filed adding Melgar-Cabrera’s brother, Jose “Tito” Humberto Melgar-Cabrera, also a Salvadoran national, as a defendant. Jose Melgar-Cabrera was charged as an accessory after the fact for assisting Melgar-Cabrera to avoid apprehension. A 14-count second superseding indictment, filed in Oct. 2010, added four new robbery and firearms offenses against Melgar-Cabrera, Aguilar-Lopez and De Leon Ortiz. The new charges arose out of the armed robbery of a Lone Star Steakhouse & Saloon located at 10019 Coors Blvd. NW in Albuquerque on June 13, 2009.
Aguilar-Lopez and De Leon Ortiz each have entered guilty pleas to armed robbery and felony murder charges. Aguilar-Lopez was sentenced to 40 years in prison and De Leon Ortiz was sentenced to a 35-year term of imprisonment. Jose Melgar-Cabrera pled guilty to being an accessory after the fact and is serving a 48-month term of imprisonment. Each of the three men will be deported after completing his term of incarceration.
Melgar-Cabrera fled to El Salvador where he was arrested on Sept. 14, 2013, by Salvadoran law enforcement authorities on a provisional arrest warrant for his extradition. He was apprehended by an elite Salvadoran investigative unit known as the Transnational Anti-Gang (TAG) Task Force. The TAG is composed of specially trained Salvadoran National Police investigators who work closely with the FBI on transnational investigations.
“The extradition of Francisco Melgar-Cabrera brings a fugitive to justice as we continue to enhance the federal law enforcement community’s partnership with El Salvador,” said Damon P. Martinez, the Acting U.S. Attorney for the District of New Mexico. “This extradition is an example of the United States’ continued efforts to work with our partners around the world to make sure criminals cannot find safe haven from justice.”
“I am extremely proud of the work of this office and our law enforcement partners. I would like to recognize the investigative efforts of ATF Special Agents who for years doggedly pursued Melgar-Cabrera for his alleged role in the 2009 murder of Stephanie Anderson. I hope his extradition back to face justice brings some peace to Stephanie’s family,” stated Special Agent in Charge Bernard J. Zapor of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives. “ATF is committed to working with our law enforcement partners – at home and around the world – to take violent criminals off the streets and bring them to justice.”
“Justice, like the grief of a family who lost a young woman in the prime of her life, transcends international boundaries. The governments and law enforcement agencies of the United States and El Salvador proved that by working together to bring this suspect back home, where his long-awaited trial will hopefully give Stephanie Anderson's loved ones some closure” said Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI. “I want to recognize the work of the FBI Special Agents and other staff in this case, particularly FBI Legal Attaché in San Salvador, as well as the U.S. Department of State, U.S. Department of Justice Office of International Affairs, U.S. Attorney's Office, the FBI's Transnational Anti-Gang Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, U.S. Immigration and Customs Enforcement, the Government of El Salvador, and the Albuquerque Police Department.”
The charges in the second superseding indictment against Melgar-Cabrera are merely accusations, and he is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.The criminal case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Albuquerque Division of the FBI and the Albuquerque Police Department. The case is being prosecuted by Assistant U.S. Attorneys Louis E. Valencia and Presiliano A. Torrez of the District of New Mexico.
The extradition of Melgar-Cabrera is the result of close cooperation between the ATF, FBI, the U.S. Marshals Service, U.S. Immigration and Customs Enforcement, and Salvadoran law enforcement authorities. The United States law enforcement partners involved in the investigation and prosecution of Melgar-Cabrera praised the outstanding efforts of the Salvadoran National Police for their assistance in bringing this fugitive to justice. The Acting U.S. Attorney, Damon P. Martinez, also thanked the ATF’s Country Attaché in El Salvador, the FBI’s Legal Attaché office in El Salvador, the Government of El Salvador, and the U.S. Department of Justice’s Office of International Affairs.
Tennessee Man Indicted for Cross BurningRead the Press Release
A federal grand jury in Nashville, Tennessee, returned a three count indictment yesterday against Timothy Flanagan, 33, formerly of Giles County, Tennessee, currently residing in Hudson, Florida, charging him with federal offenses for his role in a cross-burning in front of an interracial family’s home in Minor Hill, Tennessee, the Department of Justice and U.S. Attorney’s Office for the Middle District of Tennessee announced.
The indictment charges Flanagan with one count of conspiracy to violate housing rights, one count of criminal interference with the right to fair housing and one count of using fire to commit a federal felony.
The indictment alleges that on April 30, 2012, Flanagan conspired with others to threaten, intimidate and interfere with an interracial couple’s enjoyment of their housing rights in Minor Hill, Tennessee. According to the indictment, Flanagan and two other individuals devised a plan to burn a cross in the yard of an interracial couple who had recently had a baby. The conspirators constructed a wooden cross, purchased diesel fuel and then covered the cross in a diesel-fuel-soaked cloth. The conspirators then drove the cross to the victims’ residence, placed the cross in the driveway and ignited it. Flanagan and his co-conspirators allegedly chose to burn the cross at the victims’ house because of their race, as well as the race of their infant child.
This case was investigated by the Columbia, Tennessee, Resident Agency of the FBI and the Giles County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Blanche Cook of the Middle District of Tennessee and Trial Attorney Jared Fishman of the Justice Department’s Civil Rights Division.
An indictment is merely an accusation and the defendant is presumed innocent unless and until proven guilty.
Tax Preparer Sentenced to 46 Months in Prison for Filing 3,200 False Returns Claiming Refunds Totaling $3.37 Million for ClientsRead the Press Release
CHICAGO — A former Chicago tax preparer was sentenced today to nearly four years in federal prison for filing nearly 3,200 false federal income tax returns that claimed refunds totaling more than $3.37 million for clients. The defendant, VERLEAN HOLLINS, was sentenced to 46 months in prison and fined nearly $800,000 after pleading guilty in January to two counts of aiding and assisting in the preparation of false federal income tax returns.
Hollins, 43, of South Holland, was ordered to begin serving her sentence on Sept. 23 by U.S. District Judge Samuel Der-Yeghiayan. The $798,250 fine, which Hollins agreed to but does not currently have the ability to pay, represents twice the product of the 3,193 false returns multiplied by Hollins’ average client fee of $125.
This was “not a minor offense, there was significant loss to the government over a period of years,” Judge Der-Yeghiayan said in imposing the sentence in U.S. District Court. “Defendant stole from the people,” he said, adding her crime “became a business lifestyle.”
Hollins, who owned Taxes, Etc., Inc., a tax preparation business located in the 2300 block of East 71st Street, admitted that for calendar years 2009 through 2011, she filed a total of 3,193 individual income tax returns for clients, each of which claimed false education tax credits. As a result, she falsely claimed refunds totaling more than $3.372 million for her clients, the majority of whom paid her approximately $125 to prepare their returns. The vast majority of Hollins’ clients never indicated that they or a dependent were eligible for a college tuition credit, and among the small number of her clients who were eligible for the tax credit, none provided any documents to support eligibility.
The government is being represented by Assistant U.S. Attorney Kaarina Salovaara.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
Statement from U.S. Attorney Joyce White Vance on DOJ Policy Calling for Electronic Recording of Individuals in Federal CustodyRead the Press Release
BIRMINGHAM -- “I have enormous confidence in the integrity of the federal agents with whom we work, but I also recognize that, increasingly, we live in a world where juries expect to see law enforcement make electronic recordings of defendants’ statements at the time of arrest,” said U.S. Attorney Joyce White Vance. “So, I am encouraged by this leap forward for the Department of Justice that will help us record the best evidence of a statement – a defendants’ own words and demeanor -- and allow juries to understand how deeply committed our agents are to carrying out their mission in a professional manner. This new policy will help us side step unwarranted allegations by defendants of agent misconduct and permit us to protect our communities in a fair and just manner.”
The Attorney General's Weekly Video Message
St. Thomas Woman Arrested and Charged with Embezzlement of Postal FundsRead the Press Release
St. Thomas, USVI - Rosemarie Peltier, age 43, was arrested today and charged with misappropriation of postal funds, embezzlement of government property, and false entries and reports of monies and securities. Peltier appeared in District Court before District Court Judge Curtis V. Gomez and was released from custody after posting a $10,000 unsecured bond.
According to the Indictment filed in the District Court, Peltier, a nine year veteran with the United States Postal Service, failed to remit in excess of $29,000 given to her by customers for the purchase of money orders from the U.S. Postal Service.
If convicted of the offenses charged in the indictment, Peltier faces a statutory maximum of not more than 10 years in prison for each offense.
The public is reminded that an indictment is merely a charging document and is not evidence of guilt. A defendant is presumed innocent until proven guilty.
The case was investigated by the Office of Inspector General of the United States Postal Service. It is being prosecuted by Assistant U.S. Attorney Ishmael Meyers, Jr.
Sixteen Current and Former Puerto Rico Police Officers<br /> Indicted for Allegedly Running Criminal Organization<br /> out of Police DepartmentRead the Press Release
Sixteen current and former Puerto Rico police officers have been indicted for their alleged participation in a criminal organization, run out of the police department, that used their affiliation with law enforcement to make money through robbery, extortion, manipulating court records and selling illegal narcotics.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico and Special Agent in Charge Carlos Cases of the FBI’s San Juan Division made the announcement.
“ The criminal action today dismantles an entire network of officers who, we allege, used their badges and their guns not to uphold the law, but to break it,” said Acting Assistant Attorney General O’Neil. “The indictment portrays a classic criminal shakedown, an organized crime spree of which the most experienced mafia family would have been proud. But the people wielding the guns and stealing the drugs here weren’t mob goodfellas or mafia soldiers – these were police officers violating their oaths to enforce the law, making a mockery of the police’s sacred responsibility to protect the public. ”
“This is a troubling day for law enforcement in Puerto Rico. Officers who use their badges as an excuse to commit egregious acts of violence and drug trafficking are an affront to the rule of law,” said US Attorney Rosa Emilia Rodríguez-Vélez. “According to these allegations, the law enforcement officers charged today sold their badges by taking payoffs from drug dealers that they should have been arresting, extorting money, planting evidence and stealing from them, to mention a few of their crimes. They not only betrayed the citizens they were sworn to protect, they also betrayed the thousands of honest, hard-working law enforcement officers who risk their lives every day to keep us safe. We will continue to work with our local law enforcement partners to end this cycle of corruption and renew Puerto Rico’s trust in its police officers.”
“Today is a sad day for Puerto Rico, where a group of police officers allegedly disgraced their uniform and are a shame to the Police of Puerto Rico,” said FBI Special Agent in Charge Cases. “They not only let their colleagues and family down, they let the citizens of Puerto Rico down.”
The indictment, returned yesterday by a federal grand jury in the District of Puerto Rico, includes 36 charges against the following individuals: Osvaldo Vazquez-Ruiz, 38; Orlando Sierra-Pereira, 37; Danny Nieves-Rivera, 34; Roberto Ortiz-Cintron, 34; Yovanny Crespo-Candelaria, 33; Jose Sanchez-Santiago, 31; Miguel Perez-Rivera, 34; Nadab Arroyo-Rosa, 33; Jose Flores-Villalongo, 52; Luis Suarez-Sanchez, 36; Eduardo Montañez-Perez, 29; Carlos Laureano-Cruz, 40; Carlos Candelario-Santiago, 46; Ruben Casiano-Pietri, 36; Ricardo Rivera-Rodriguez, 39; and Christian Valles-Collazo, 28. At the time of the crimes charged, Flores-Villalongo and Candelario-Santiago were sergeants with the Police of Puerto Rico (POPR); the others were police officers.
The first 13 defendants listed are charged with conspiring to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act. Other charges against certain defendants include extortion and attempted extortion under color of official right, conspiracy to commit robbery and attempted robbery, illegal use and sale of firearms, narcotics trafficking, civil rights violations, theft of government property, and false statements to federal agents.
According to the indictment, the officers charged with RICO conspiracy were members of a criminal organization who sought to enrich themselves through a pattern of illegal conduct. The officers worked together to conduct traffic stops and enter homes or buildings used by persons suspected of being engaged in criminal activity to steal money, property and narcotics. The officers planted evidence to make false arrests, then extorted money in exchange for their victims’ release from custody. In exchange for bribe payments, the defendants gave false testimony, manipulated court records and failed to appear in court when required so that cases would be dismissed. The officers also sold and distributed wholesale quantities of narcotics.
For example, in April 2012, defendants Vazquez-Ruiz and Sierra-Pereira allegedly conducted a traffic stop in their capacity as police officers and stole approximately $22,000 they believed to be illegal drug proceeds. Vazquez-Ruiz later attempted to extort approximately $8,000 from an individual they believed to be a drug dealer’s accomplice in exchange for promising to release an alleged prisoner.
In another example, the indictment alleges that in November 2012, defendants Sierra-Pereira, Nieves-Rivera, Ortiz-Cintron and Valles-Collazo illegally entered an apartment and stole approximately $30,000, which they believed were illegal lottery proceeds.
The indictment charges that the defendants frequently shared the proceeds they illegally obtained and that they used their power, authority and official positions as police officers to promote and protect their illegal activity. Among other things, the indictment charges that they used POPR firearms, badges, patrol cars, tools, uniforms and other equipment to commit the crimes and concealed their illegal activity with fraudulently obtained court documents and falsified POPR paperwork to make it appear that they were engaged in legitimate police work.
The charges contained in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI’s San Juan Division. The case is being prosecuted by Trial Attorneys Brian K. Kidd, Emily Rae Woods and Menaka Kalaskar of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Mariana Bauza of the District of Puerto Rico.
Citizens of Puerto Rico with allegations of law enforcement corruption are encouraged to contact the FBI’s San Juan Division at (787) 754-6000.Related Materials:
Indictment
Sixteen Current and Former Puerto Rico Police Officers Indicted for Allegedly Running Criminal Organization Out of Police DepartmentRead the Press Release
WASHINGTON – Sixteen current and former Puerto Rico police officers have been indicted for their alleged participation in a criminal organization, run out of the police department, that used their affiliation with law enforcement to make money through robbery, extortion, manipulating court records and selling illegal narcotics.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico and Special Agent in Charge Carlos Cases of the FBI’s San Juan Division made the announcement.
“The criminal action today dismantles an entire network of officers who, we allege, used their badges and their guns not to uphold the law, but to break it,” said Acting Assistant Attorney General O’Neil. “The indictment portrays a classic criminal shakedown, an organized crime spree of which the most experienced mafia family would have been proud. But the people wielding the guns and stealing the drugs here weren’t mob goodfellas or mafia soldiers – these were police officers violating their oaths to enforce the law, making a mockery of the police’s sacred responsibility to protect the public.”
“This is a troubling day for law enforcement in Puerto Rico. Officers who use their badges as an excuse to commit egregious acts of violence and drug trafficking are an affront to the rule of law,” said US Attorney Rosa Emilia Rodríguez-Vélez. “According to these allegations, the law enforcement officers charged today sold their badges by taking payoffs from drug dealers that they should have been arresting, extorting money, planting evidence and stealing from them, to mention a few of their crimes. They not only betrayed the citizens they were sworn to protect, they also betrayed the thousands of honest, hard-working law enforcement officers who risk their lives every day to keep us safe. We will continue to work with our local law enforcement partners to end this cycle of corruption and renew Puerto Rico’s trust in its police officers.”
“Today is a sad day for Puerto Rico, where a group of police officers allegedly disgraced their uniform and are a shame to the Police of Puerto Rico,” said FBI Special Agent in Charge Cases. “They not only let their colleagues and family down, they let the citizens of Puerto Rico down.”
The indictment, returned yesterday by a federal grand jury in the District of Puerto Rico, includes 36 charges against the following individuals: Osvaldo Vazquez-Ruiz, 38; Orlando Sierra-Pereira, 37; Danny Nieves-Rivera, 34; Roberto Ortiz-Cintron, 34; Yovanny Crespo-Candelaria, 33; Jose Sanchez-Santiago, 31; Miguel Perez-Rivera, 34; Nadab Arroyo-Rosa, 33; Jose Flores-Villalongo, 52; Luis Suarez-Sanchez, 36; Eduardo Montañez-Perez, 29; Carlos Laureano-Cruz, 40; Carlos Candelario-Santiago, 46; Ruben Casiano-Pietri, 36; Ricardo Rivera-Rodriguez, 39; and Christian Valles-Collazo, 28. At the time of the crimes charged, Flores-Villalongo and Candelario-Santiago were sergeants with the Police of Puerto Rico (POPR); the others were police officers.The first 13 defendants listed are charged with conspiring to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act. Other charges against certain defendants include extortion and attempted extortion under color of official right, conspiracy to commit robbery and attempted robbery, illegal use and sale of firearms, narcotics trafficking, civil rights violations, theft of government property, and false statements to federal agents.
According to the indictment, the officers charged with RICO conspiracy were members of a criminal organization who sought to enrich themselves through a pattern of illegal conduct. The officers worked together to conduct traffic stops and enter homes or buildings used by persons suspected of being engaged in criminal activity to steal money, property and narcotics. The officers planted evidence to make false arrests, then extorted money in exchange for their victims’ release from custody. In exchange for bribe payments, the defendants gave false testimony, manipulated court records and failed to appear in court when required so that cases would be dismissed. The officers also sold and distributed wholesale quantities of narcotics.
For example, in April 2012, defendants Vazquez-Ruiz and Sierra-Pereira allegedly conducted a traffic stop in their capacity as police officers and stole approximately $22,000 they believed to be illegal drug proceeds. Vazquez-Ruiz later attempted to extort approximately $8,000 from an individual they believed to be a drug dealer’s accomplice in exchange for promising to release an alleged prisoner.
In another example, the indictment alleges that in November 2012, defendants Sierra-Pereira, Nieves-Rivera, Ortiz-Cintron and Valles-Collazo illegally entered an apartment and stole approximately $30,000, which they believed were illegal lottery proceeds.
The indictment charges that the defendants frequently shared the proceeds they illegally obtained and that they used their power, authority and official positions as police officers to promote and protect their illegal activity. Among other things, the indictment charges that they used POPR firearms, badges, patrol cars, tools, uniforms and other equipment to commit the crimes and concealed their illegal activity with fraudulently obtained court documents and falsified POPR paperwork to make it appear that they were engaged in legitimate police work.
The charges contained in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI’s San Juan Division. The case is being prosecuted by Trial Attorneys Brian K. Kidd, Emily Rae Woods and Menaka Kalaskar of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Mariana Bauza of the District of Puerto Rico.
Citizens of Puerto Rico with allegations of law enforcement corruption are encouraged to contact the FBI’s San Juan Division at (787) 754-6000.