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Wednesday 21 May 2014
Company Pleads Guilty to Improper Storage of Explosive Hazardous Waste and Agrees to $1.2 Million FineRead the Press Release
PHILADELPHIA – Action Manufacturing Company, headquartered in Bristol, Bucks County, pled guilty today to storing explosive hazardous waste illegally at its facility in Atglen, Chester County, PA, announced United States Attorney Zane David Memeger. The defendant has agreed to pay a fine of $1.2 million, and will face a five-year term of probation and a special assessment of $800. Its president has agreed to resign, and the company will comply with a schedule for disposing of the backlog of waste built up over many years. A sentencing hearing is scheduled for August 27, 2014.
Action Manufacturing makes timing and arming devices for munitions and explosives. In its manufacturing process, Action Manufacturing mixes explosive powders, and also fills boosters, detonators and other items with explosive powders. Action Manufacturing's production process generates explosive solid waste, and the law requires that it be disposed of in accordance with the Resource Conservation and Recovery Act. The company admitted that, instead of sending its waste to an approved treatment, storage and disposal facility, it stockpiled explosive hazardous waste at its Atglen facility without a permit. In November 2011, civil inspectors from EPA's Land and Chemicals Division and the Pennsylvania Department of Environmental Protection inspected the Atglen site, and found the illegally stored waste, including scrap parts and components that were years or even decades overdue for disposal.
Action Manufacturing also admitted that it violated Department of Transportation recordkeeping regulations for transporting explosive material on the public roads.
“The defendant’s illegal business practices threatened the lives and safety of workers and neighbors,” said David G. McLeod, Special Agent in Charge of EPA’s criminal enforcement program in the Middle Atlantic States. “By creating a risk for detonation and release of hazardous waste, the company also threatened to pollute the environment. Today’s plea demonstrates EPA’s commitment to prosecute those who endanger public safety and a clean environment by ignoring the law.”
The case was investigated by the EPA’s Criminal Investigations Division and the U.S. Department of Transportation Office of Inspector General. It is being prosecuted by Assistant United States Attorney Elizabeth Abrams.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Columbia Man Indicted for Distributing Heroin to a Minor who may have Died from OverdoseRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was indicted by a federal grand jury today for distributing heroin to a 16-year-old minor who died of a suspected heroin overdose.
Jon Patrick Washington, also known as “Doom,” 27, of Columbia, was charged in a single-count indictment returned by a federal grand jury in Jefferson City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Washington on May 7, 2014. Washington remains in federal custody.
Today’s indictment alleges that Washington distributed heroin to a minor on April 2, 2014.
According to an affidavit filed in support of the original criminal complaint, Columbia police officers responded to a suspected heroin overdose death at the Providence Suites, 1718 N. Providence Rd., in Columbia on April 3, 2014. The victim was a 16-year-old female. A confidential informant later reported that the heroin had been supplied by Washington and another person.
The Boone County Medical Examiner has not released an official cause of death.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the Columbia, Mo., Police Department, the Drug Enforcement Administration and the Missouri State Highway Patrol.
Cape Cod Man Sentenced for Trafficking Counterfeit ViagraRead the Press Release
BOSTON – A Cape Cod man was sentenced yesterday for trafficking counterfeit Viagra on Craigslist.
David Nailen, 45, of East Falmouth, was sentenced by U.S. District Judge Douglas P. Woodlock to 18 months in prison, to be served intermittently, with nine months in the custody of the Bureau of Prisons and nine months in home confinement, followed by two years of supervised release. Nailen was also ordered to pay $48,902 in restitution to Pfizer, Inc. and a money judgment of $2,280 to the United States Customs and Border Protection. In February 2014, Nailen pleaded guilty to trafficking in counterfeit drugs.
Between March and October 2012, Nailen sold counterfeit tablets that were similar or indistinguishable from Pfizer, Inc.’s pharmaceutical drug Viagra, via the Internet, on Craigslist, and in person. In October 2012, investigators executed a search warrant on his East Falmouth home and seized over 3,000 counterfeit Viagra tablets.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Custom’s Enforcement’s Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Amy Harman Burkart of Ortiz’s Cybercrime Unit.
Canadian Man Sentenced in Case Involving Largest Seizure of Cocaine in District HistoryRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Ravinder Arora, 33, a resident of Canada, who was convicted of conspiracy to export five kilograms or more of cocaine from the United States into Canada, was sentenced to 84 months in prison by Chief U.S. District Judge William M. Skretny. The case involved the seizure of 100 kilograms of cocaine - believed to be the largest narcotics seizure in the history of the Western District of New York.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that on September 8, 2010, the defendant attempted to cross the Lewiston-Queenston Bridge from the United States into Canada. An outbound inspection of Arora's tractor-trailer revealed a hidden compartment underneath the floor. In the hidden compartment, U.S. Customs and Border Protection Officers and Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations found approximately 97 kilograms of cocaine. The defendant admitted to making at least four additional smuggling trips between the United States and Canada.
During the course of the conspiracy, the defendant and other individuals utilized a warehouse on Walden Avenue in Cheektowaga, N.Y., to conceal their narcotics trafficking operation. More specifically, the conspirators loaded and unloaded legitimate cargo (cardboard boxes, Styrofoam packaging material) into tractor-trailers, so as to further conceal the cocaine contained within the false floors of the conveyances. The hidden compartment was also used by members of the conspiracy to smuggle marijuana and ecstacy into the United States, as well as United States currency. The conspiracy trafficked over 1,600 kilograms of cocaine into Canada during its operation, in addition to the marijuana and ecstasy which was smuggled into the United States via the international bridges located in the Buffalo-Niagara region.
Co-defendants Michael Bagri and Parminder Sidhu have been convicted of similar charges and are awaiting sentencing.
The plea is the result of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, Officers from the United States Customs and Border Protection, under the direction of Randy Howe, Director of Field Operations, the Peel Regional Police Department, under the direction of Chief Jennifer Evans, the Canada Border Services Agency, under the direction of Rick Comerford, Regional Director General, Southern Ontario Region and the Toronto Police, under the direction of Chief William Blair.California Man Sentenced to 51 Months in Prison for Multi-Million Dollar Mortgage FraudRead the Press Release
PHILADELPHIA - Steven Pitchersky, 65, of Rancho Mirage, California, was sentenced today to 51 months in prison for a scheme to defraud Ally Bank that resulted in losses to the bank of approximately $5.3 million. Pitchersky, who pleaded guilty to wire fraud on September 23, 2013, operated Nationwide Mortgage Concepts (“NMC”), a California mortgage lender.
Between August 2009 and January 2011, Ally was the warehouse lender for thousands of mortgage loans in which NMC borrowed from Ally’s warehouse line of credit to refinance first mortgages held by other financial institutions. Pitchersky made misrepresentations to Ally to secure the warehouse line of credit including his false representation that NMC had a current $10 million warehouse line of credit with a company named MPL. Pitchersky stated that the contact person for MPL was a man named “Rick Jay” and he listed a phone number for Rick Jay. The phone number that was provided, however, was actually for Pitchersky’s cell phone, and MPL was the name of another business entity that Pitchersky ran. Over the next three years, Pitchersky represented to Ally multiple times that he had a warehouse lending relationship with this company.
Pitchersky used NMC’s $10 million warehouse line with Ally to obtain funds to refinance thousands of mortgages held by other banks for NMC customers. Ally required NMC to disburse funds through a third-party, commonly referred to as a title company. Pitchersky used a company called Hanover as the title company but, unbeknownst to Ally, Pitchersky had created Hanover. This subterfuge allowed Pitchersky to have complete control over money NMC acquired from Ally’s warehouse line. Between December 2010 and January 2011, Ally advanced NMC approximately $5.3 million to pay off 23 first mortgages for NMC clients. NMC failed to use these funds to pay off these mortgages and instead used the money to pay off first mortgages for other customers. At the end of January 2011 Ally discovered that defendant and NMC had not used this money to pay off the 23 loans and ended the warehouse agreement with NMC.
In addition to the prison term, U.S. District Court Judge John R. Padova ordered restitution in the amount of $3,242,888, five years of supervised release and a $100 special assessment.
In total, $17.2 billion in federal taxpayer bailout funds were invested in GMAC Inc., since rebranded as Ally Financial Inc., through the U.S. Department of the Treasury Troubled Asset Relief Program (TARP). As of April 9, 2014, Treasury owned 17 percent of Ally Financial, and $4.1 billion of the TARP investment remained outstanding.
“Greed got the best of Pitchersky and, for his crimes, he will spend the next [XX] years in federal prison.” said Christy Romero, Special Inspector General for TARP (SIGTARP). “Defrauding a recipient is the same as defrauding American taxpayers who funded TARP. Pitchersky drew down millions of dollars on a warehouse line of credit with Ally through lies and false pretenses, faking that he used Ally’s funds to pay off refinanced mortgages while, instead, he used the money in part to fund his luxurious lifestyle and extravagant art collection. SIGTARP and our law enforcement partners will bring justice to those committing crimes that threaten taxpayers’ TARP investments.”
The case was investigated by the Federal Bureau of Investigation, the Office of the Special Inspector General for the Troubled Asset Relief Program, and the Department of Veterans Affairs Office of Inspector General. It was prosecuted by Assistant United States Attorney David L. Axelrod.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Burns Flat Woman Sentenced to 27 Years for Videotaping Sex Acts with ToddlerRead the Press Release
Oklahoma City, Oklahoma – Today, United States District Court Judge Robin J. Cauthron sentenced LAURA JEAN SHOULDERS, 47, of Burns Flat, Oklahoma, to serve 324 months in federal prison for producing child pornography, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. Shoulders will have no possibility of parole. Upon release from prison, Shoulders will have to register as a sex offender.
According to court records and information from court proceedings, Shoulders met a Burlington, Oklahoma, man online through a Craigslist personals ad in the summer of 2012. The two began texting each other about sexually explicit themes and exchanged sexually explicit photographs. The conversations turned to the subject of child pornography, and Shoulders sent the man three videos of herself performing sex acts with a one-year-old child that she made with her iPhone. Shoulders was babysitting the child. The man, in turn, distributed the videos to others, whom he met online.
Shoulders was indicted on January 8, 2014, and pled guilty on February 26, 2013.
This case is the result of an investigation by the Oklahoma Internet Crimes Against Children (ICAC) Task Force, Washita County Sheriff’s Office, Burns Flat Police Department, Dewey County Sheriff’s Office, and the United States Secret Service. Among the investigators who participated in this investigation were the recently deceased Officer Kristian Willhight of the Burns Flat Police Department and the recently deceased Undersheriff Brian Beck of the Washita County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Brandon Hale.
Bunch Man Sentenced to 151 Months, $395,000 for Methamphetamine and Marijuana DistributionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that RALPH EUGENE JOHNSON, age 57, of Bunch, OK was sentenced to 151 months imprisonment and received a money judgment against in him in excess of $395,000.00, for Possession of a Controlled Substance with Intent to Distribute, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C) and 841 (b)(1)(D).
Charges arose from an investigation by the Muskogee Police Department and the Drug Enforcement Administration. The defendant was indicted in August, 2013 and pled guilty in October, 2013.
The Indictment alleged that on or about June 19, 2013 in the Eastern District of Oklahoma, RALPH EUGENE JOHNSON, did unlawfully, knowingly and intentionally possess with the intent to distribute a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance, and a substance containing a detectable amount of Marijuana, a Schedule I Controlled Substance.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Kyle Waters represented the United States.
Buffalo Man Sentenced on Drug ChargesRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Christopher Walters, 28, of Buffalo, N.Y., who was convicted of possession with intent to distribute, and the distribution of, oxycodone, was sentenced to 12 months in prison by U.S. District Court Judge Richard J. Arcara.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that on January 5, 2011, the defendant sold 144 oxycodone pills to a confidential source.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.Brooklyn Man, Known as “thuggin,” Sentenced to 58 Months in Jail for Conspiring to Distribute Heroin and Cocaine BaseRead the Press Release
Tristram J. Coffin, United States Attorney for the District of Vermont stated that Andrew Hollins, 27, of Brooklyn, New York, was sentenced on May 19, 2014 by United States District Court Judge J. Garvan Murtha to 58 months in jail for conspiring to distribute cocaine base (crack cocaine) and heroin in Burlington, Vermont. Hollins was also sentenced to a 3-year period of supervised release after he is released from prison.
According to Court records, Hollins was arrested on June 10, 2013 at the Quality Inn at 84 South Park Drive in Colchester, Vermont after law enforcement entered Room 135 pursuant to a state court search warrant. While the officers were trying to open the hotel room door, Hollins, known on the street as “Thuggin” was trying to hold the door closed so that his associate could flush money and drugs down the toilet. His attempt to hold the door closed was unsuccessful and officers pulled $8,000 in cash, 31.8 grams of heroin and 54.3 grams of crack cocaine from the toilet.
Hollins was indicted by a federal grand jury on June 20, 2013. He was ordered to be detained in jail pending trial. On January 27, 2014, Hollins pled guilty to conspiring to distribute cocaine base and heroin. He has been detained in prison since his arrest.
This case was investigated by the Burlington Police Department. The United States Attorney, Tristram J. Coffin, commends that agency for its work. The case was prosecuted by Assistant United States Attorney, Nancy J. Creswell. Hollins was represented by Steven Barth of the Office of the Federal Public Defender.
Brattleboro Man Sentenced for Possessionof Child PornographyRead the Press Release
Tristram J. Coffin, United States Attorney for the District of Vermont, stated that Ralph Schnyer, 46, of 213 Birge Street, Brattleboro, Vermont was sentenced on May 19, 2014 by U.S. District Court Judge William K. Sessions III, to 12 months and one day in prison for possession of child pornography. Schnyer was also sentenced to five years of supervised release after the completion of his prison term.
According to Court records, on August 13, 2013, Ralph Schnyer was in possession of thousands of images and videos containing child pornography. He was apprehended when Special Agents with Homeland Security Investigations (“HSI”) learned that someone at the Birge Street residence was distributing child pornography using Ares, a type of file-sharing software. Pursuant to a federal search warrant, law enforcement searched the residence at 213 Birge Street on August 13, 2013 and discovered child pornography on Ralph Schnyer’s computer.
Schnyer was arrested on August 13, 2013. On August 14, 2013, he appeared before United States Magistrate Judge John M. Conroy who released Schnyer pending trial. He was indicted by a federal grand jury on August 29, 2013 for possession of child pornography. Schnyer pled guilty to that offense on January 21, 2014 and was released pending sentencing.
This case was investigated by the Department of Homeland Security Investigations. The United States Attorney, Tristram J. Coffin, commends that agency for its work. The case was prosecuted by Assistant United States Attorney Nancy J. Creswell. Schnyer was represented by Attorney Thomas Sherrer.
Bahamian and Jamaican Nationals Sentenced for Marijuana ImportationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, announce the sentencings of Quinton Mitchell, 31, of Sweeting’s Cay Settlement, Green Turtle Cay, Bahamas and Leroy Anthony Edwards a/k/a “Roy Anthony Elliot,” 57, of Kingston Jamaica. Both defendants were sentenced by U.S. District Judge Jose E. Martinez to five years in prison, followed by four years of supervised release.
Mitchell pled guilty on January 28, 2014, to conspiracy to import a controlled substance –100 kilograms or more of marijuana, in violation of Title 21, United States Code, Sections 952(a), 963 and 960(b)(2).
Edwards pled guilty on January 28, 2014, to importation of a controlled substance – 100 kilograms or more of marijuana, in violation of Title 21, United States Code, Sections 952(a), and 960(b)(2) and Title 18, United States Code, Section 2. Edwards also pled guilty to being a previously removed alien after deportation, in violation of Title 8, United States Code, Section 1326(a)(1).
According to documents filed with the Court, on November 22, 2013, eyewitnesses observed a vessel capsize in the waters off of the Jupiter Island shoreline. Three males made it to shore. One ran away from the scene. Leroy Anthony Edwards, a Jamaican national, was rescued from the surf and resuscitated by a good samaritan. Edwards, who was in critical condition from the drowning, was transported to the hospital by a rescue team. Mitchell, who was identified as the boat captain, was captured by Jupiter Island Police Department Officers and Martin County Sheriff’s Office Deputies while in flight from the scene. Mitchell admitted to detectives that he was approached while in the Bahamas to transport the marijuana along with another Bahamian, and two Jamaican nationals to the U.S. because he had boat driving experience. Mitchell said when they arrived a few miles from the Florida coastline, they began to have engine difficulty and later when the boat entered the rough surf, it capsized. Martin County Sheriff’s Office Crime Scene investigators found that the recovered bales contained marijuana, weighing approximately 236 kilograms. Authorities are still searching for the two other passengers that were on-board the boat.
Immigration records reflected that Edwards was previously removed from the U.S. in 2001 under the name of Roy Anthony Elliott, and again in 2012, after presenting a fraudulent legal permanent resident card at the Port Everglades Seaport.
Mr. Ferrer commended the investigative efforts of ICE-HSI, DEA. Mr. Ferrer also thanked the Jupiter Island Police Department, the Martin County Sheriff’s Office, U.S. Customs and Border Protection, and Florida Fish and Wildlife. The case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
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.
Armored Car Service Employee Sentenced to 15 Months in Prison for Stealing More Than $143,000 from Bank VaultRead the Press Release
CHARLOTTE, N.C. – Chief U.S. District Judge Frank D. Whitney sentenced today Christian Zorrilla, 31, of Charlotte to 15 months in prison for stealing $143,680 from a bank vault, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. In addition to the prison term, Zorrilla was also ordered to serve two years under court supervision and to pay $143,680 as restitution. Zorrilla pleaded guilty in March 2013 to one count of bank theft.
Brock D. Nicholson, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Georgia and the Carolinas joins U.S. Attorney Tompkins in making today’s announcement.
According to charging documents and statements made during the sentencing hearing, from 2005 through May 2012, Zorrilla was employed by an armored car service as a driver, messenger, and vault custodian. According to court records, between December 2011 and April 2012 and while working as vault custodian, Zorrilla stole a total of $143,680 from the armored car service. Court records indicate that Zorrilla’s responsibilities as vault custodian included coordinating cash storage at the bank’s vault and changing out security tapes. According to court documents, Zorrilla used the delay between the changing of security tapes to take cash out of sealed bags in the vault and to reseal the bags. Zorrilla stole funds in this manner on approximately six occasions, court records show. According to information contained in filed documents and statements made during the sentencing hearing, Zorrilla used the stolen money to pay for vehicles and to pay off a second mortgage on his home.
Zorrilla remains released on bond and upon designation of a federal facility he will be ordered to report to the Federal Bureau of Prisons to begin serving his sentence. All federal sentences are served without the possibility of parole.
The investigation into Zorrilla was handled by HSI. The case was prosecuted by Assistant U.S. Attorney Jenny Grus Sugar of the U.S. Attorney’s Office in Charlotte.
Anthony, N.M., Man Sentenced to Forty-Six Months for Unlawful Possession of a Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Victor Manuel Carreon, 23, of Anthony, N.M., was sentenced in federal court in Las Cruces, N.M., this morning to 46 months in prison for his conviction for being a felon in possession of a firearm and ammunition. Carreon will be on supervised release for three years after he completes his term of incarceration.
Carreon and his brother Javier Orozco, 30, also of Anthony, were arrested on Sept. 5, 2013, based on a criminal complaint charging them with being felons in possession of firearms and ammunition. The two were subsequently indicted on these charges on Dec. 11, 2013. The indictment alleges that Carreon and Orozco unlawfully possessed firearms and ammunition in Doña Ana County, N.M., on June 19, 2013. At the time, the brothers were prohibited from possessing firearms or ammunition because they were convicted felons. Carreon previously had been convicted for possession of a controlled substance and aggravated fleeing from a law enforcement officer, and Orozco had been convicted for shooting at a motor vehicle and aggravated assault.
According to court filings, on June 19, 2013, Carreon and Orozco were arrested on state charges by Doña Ana County Sheriff’s deputies who were seeking to arrest Carreon on state warrants. The deputies detained Orozco in the vicinity of a truck parked outside a residence in Anthony, and arrested Carreon inside the residence. At the time of his arrest, Carreon was near a trash can that contained a loaded handgun; he admitted ownership of the handgun during a post-arrest interview. The deputies arrested Orozco after they allegedly found a large amount of cash and a plastic bag containing methamphetamine in Orozco’s pockets. During a search of the truck, which allegedly was driven primarily by Orozco, officers allegedly found additional currency and a loaded handgun.
On Jan. 7, 2014,Carreon pled guilty to Count 2 of the indictment charging him with being a felon in possession of a firearm and ammunition, and admitted that he unlawfully possessed a firearm and ammunition on June 19, 2013. Carreon entered his guilty plea without the benefit of a plea agreement.
On Feb. 11, 2014, Orozco entered a guilty plea and admitted possessing a 9 mm handgun on June 19, 2013. Orozco remains in federal custody pending his sentencing hearing, which has yet to be scheduled. At sentencing, Orozco faces a maximum penalty of ten years in prison.
This case was investigated by the Las Cruces office of the FBI and the Doña Ana County Sheriff’s Office, with assistance from the 3rd Judicial District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Antelope Valley Man Pleads Guilty to Federal Charge of Producing Child Pornography Related to Molestation of RelativeRead the Press Release
LOS ANGELES – An Antelope Valley man pleaded guilty this morning to a federal charge of producing child pornography, admitted that he used his camera phone to make videos while he molested a 3-month-old relative.
Robert Dale Schrader, 33, of Littlerock, pleaded guilty to charge before United States District Judge Gary A. Feess, who scheduled a sentencing hearing for August 18.
At sentencing, Schrader faces a mandatory minimum sentence of 15 years in federal prison, and he could be ordered to serve up to 30 years in custody.
According to court documents, authorities began investigating Schrader in January after he communicated via email with an undercover law enforcement officer based in England. In those emails, Schrader sent sexually explicit images of an infant , and data embedded in those images led authorities to Schrader’s Littlerock home.
On January 29, investigators executed a federal search warrant at Schrader’s residence, where they rescued the infant who had been molested. Authorities discovered approximately 200 child pornography images and videos depicting the baby.
The case against Schrader is the result of an investigation by the Child Exploitation Investigations Group, a task force based in Long Beach and spearheaded by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Other agencies actively involved in the group include the Los Angeles Police Department, the FBI and the Los Angeles County Department of Children and Family Services (DCFS).
Release No. 14-064
19 Arrested in International Round up on Federal Fraud ChargesRead the Press Release
Fifteen individuals were arrested today in South Africa, Canada, California, Wisconsin and Indiana, pursuant to an eight-count federal indictment on fraud charges filed in the Southern District of Mississippi. A total of 19 individuals were arrested across the United States and internationally on charges brought by federal prosecutors in Mississippi, South Carolina and Georgia.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Gregory K. Davis for the Southern District of Mississippi, Raymond Parmer Jr., Special Agent in Charge of Immigration Customs Enforcement (ICE), Homeland Security Investigations (HSI) in New Orleans and Robert Wemyss, U.S. Postal Inspection Service Inspector in Charge made the announcement.
Another individual was arrested today in New York on a related Southern District of Mississippi complaint. Three defendants in South Carolina were arrested in Charleston, pursuant to a nine-count indictment, and the U.S. Attorney’s Office for the Northern District of Georgia has filed related criminal complaints in Atlanta against two additional defendants. All of the indictments and complaints were unsealed yesterday.
The indictments allege the involvement of a West African transnational organized crime enterprise engaged in numerous complex financial fraud schemes over the internet. This mass marketing fraud includes romance scams, re-shipping scams, fraudulent check scams and work-at-home scams, along with bank, financial and credit card account take-overs.
The investigation was initiated in October 2011, by HSI agents in Gulfport, Mississippi, after U.S. law enforcement officers were contacted by a female victim who was the victim of a sweetheart scam. The victim received a package in the mail requesting that she reship the merchandise to an address in Pretoria, South Africa. The investigation later revealed that the merchandise was purchased using stolen personal identity information and fraudulent credit card information of persons in the United States. Investigators have identified hundreds of victims of this scam in the United States, resulting in the loss of millions of U.S. dollars.
Today’s arrests were the result of an investigation led by the HSI Gulfport office in partnership with the U.S. Postal Inspection Service, South African Police Service, Toronto Police, HSI Cyber Crimes Center, Treasury Executive Office of Asset Forfeiture, HSI Ontario, HSI Charleston, Interpol South Africa, HSI Pretoria and HSI Atlanta.
The Department of Justice Office of International Affairs assisted in the provisional arrests of ten defendants in Pretoria, South Africa. Another defendant was arrested in Toronto, Canada, and the remaining defendants were arrested in the United States.
The case in Mississippi will be prosecuted by Assistant U.S. Attorneys Annette Williams and Scott Gilbert, and will be scheduled for trial after extradition of the defendants to Mississippi. The South Carolina prosecution will be handled by Department of Justice Organized Crime and Gang Section trial attorneys Leshia Lee-Dixon and Robert Tully. The Georgia cases will be prosecuted by Assistant U.S. Attorney Shanya J. Dingle of the Northern District of Georgia.
An indictment is a formal charge against a defendant. Under the law, an indictment is merely an accusation and a defendant is presumed innocent until proven guilty.19 Arrested in International Round up on Federal Fraud ChargesRead the Press Release
Contact: (202) 514-2007
Washington, DC ----- Fifteen individuals were arrested today in South Africa, Canada, California, Wisconsin and Indiana, pursuant to an eight-count federal indictment on fraud charges filed in the Southern District of Mississippi. A total of 19 individuals were arrested across the United States and internationally on charges brought by federal prosecutors in Mississippi, South Carolina and Georgia.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Gregory K. Davis for the Southern District of Mississippi, Raymond Parmer Jr., Special Agent in Charge of Immigration Customs Enforcement (ICE), Homeland Security Investigations (HSI) in New Orleans and Robert Wemyss, U.S. Postal Inspection Service Inspector in Charge made the announcement.
Another individual was arrested today in New York on a related Southern District of Mississippi complaint. Three defendants in South Carolina were arrested in Charleston, pursuant to a nine-count indictment, and the U.S. Attorney’s Office for the Northern District of Georgia has filed related criminal complaints in Atlanta against two additional defendants. All of the indictments and complaints were unsealed yesterday.
The indictments allege the involvement of a West African transnational organized crime enterprise engaged in numerous complex financial fraud schemes over the internet. This mass marketing fraud includes romance scams, re-shipping scams, fraudulent check scams and work-at-home scams, along with bank, financial and credit card account take-overs.
The investigation was initiated in October 2011, by HSI agents in Gulfport, Mississippi, after U.S. law enforcement officers were contacted by a female victim who was the victim of a sweetheart scam. The victim received a package in the mail requesting that she reship the merchandise to an address in Pretoria, South Africa. The investigation later revealed that the merchandise was purchased using stolen personal identity information and fraudulent credit card information of persons in the United States. Investigators have identified hundreds of victims of this scam in the United States, resulting in the loss of millions of U.S. dollars.
Today’s arrests were the result of an investigation led by the HSI Gulfport office in partnership with the U.S. Postal Inspection Service, South African Police Service, Toronto Police, HSI Cyber Crimes Center, Treasury Executive Office of Asset Forfeiture, HSI Ontario, HSI Charleston, Interpol South Africa, HSI Pretoria and HSI Atlanta.
The Department of Justice Office of International Affairs assisted in the provisional arrests of ten defendants in Pretoria, South Africa. Another defendant was arrested in Toronto, Canada, and the remaining defendants were arrested in the United States.
The case in Mississippi will be prosecuted by Assistant U.S. Attorneys Annette Williams and Scott Gilbert, and will be scheduled for trial after extradition of the defendants to Mississippi. The South Carolina prosecution will be handled by Department of Justice Organized Crime and Gang Section trial attorneys Leshia Lee-Dixon and Robert Tully. The Georgia cases will be prosecuted by Assistant U.S. Attorney Shanya J. Dingle of the Northern District of Georgia.
An indictment is a formal charge against a defendant. Under the law, an indictment is merely an accusation and a defendant is presumed innocent until proven guilty.14-542
DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Tuesday 20 May 2014
Wyatt Detention Facility Detainee Convicted of Possession of Makeshift Weapon in PrisonRead the Press Release
PROVIDENCE, R.I. – A federal court jury in Providence today convicted Ernesto Monell, 36, of Taunton, Mass., with possession of contraband - a makeshift weapon, while incarcerated at the Donald W. Wyatt Detention Facility in Central Falls, R.I., announced United States Attorney Peter F. Neronha and United States Marshal Jamie A. Hainsworth.
According to the government’s evidence presented to the jury, on August 16, 2013, correctional officers assigned to the L-Pod at the Wyatt Detention Facility observed a disturbance break out involving numerous detainees attacking one another. Monell was observed attacking two or more detainees using a homemade weapon/shank. The disturbance was recorded on the facility’s video surveillance system. Monell can be seen on the video, which was introduced as evidence and played for the jury, swinging his arm in a stabbing type motion. An object can be seen in his hand.
According to the government’s evidence, the correctional staff brought the situation under control by using chemical spray, and noted that Monell suffered injuries to his hand consistent with holding a makeshift type weapon. A search of the L-Pod was undertaken and a makeshift weapon/shank was recovered from a second tier waste can. A correctional officer who first observed the disturbance break out identified the item as the weapon Monell was using to carry out his assaults.
Detainees who were seen on the video being struck by Monell were examined and found to have puncture and scratch like injuries consistent with having been inflicted by the shank.
At the time of the incident, Monell was detained at the Wyatt Detention Facility on a charge of being a felon in possession of a firearm brought by the U.S. Attorney’s Office for the District of Massachusetts.
Monell is scheduled to be sentenced by U.S. District Court Judge William E. Smith on September 12, 2014. Possession of contraband in prison is punishable by a statutory penalty up to 3 years in federal prison and a fine of up to $250,000.The case is being prosecuted by Assistant U.S. William J. Ferland.
The matter was investigated by the Wyatt Detention Center Investigative Unit, with the assistance of the United States Marshals Service.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Wisconsin Man Charged with Robbing Three Banks in Cedar RapidsRead the Press Release
Jeffrey Haydock, 57, from Watertown, Wisconsin, has been charged with three counts of bank robbery. The charges are contained in an Indictment filed on April 23, 2014, in United States District Court in Cedar Rapids.
The Indictment alleges that, on or about July 30, 2009, and again on or about November 12, 2009, Haydock robbed the First Federal Credit Union in Cedar Rapids. The Indictment also alleges that, on or about February 17, 2010, Haydock robbed the Linn Area Credit Union in Cedar Rapids.If convicted on all charges, Haydock faces a possible maximum sentence of seventy-five years’ imprisonment, a $750,000 fine, $300 in special assessments, and fifteen years of supervised release following any imprisonment.
Haydock appeared today in federal court in Cedar Rapids and was held without bond. Haydock’s next appearance for trial is set for July 21, 2014.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Cedar Rapids Police Department and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number is 14-CR-0047.
Wellpinit Man Sentenced to Federal Prison for Domestic AssaultRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Charles Joseph Reevis, age 24, of Wellpinit, Washington, was sentenced on Tuesday, May 20, 2014 after having previously pleaded guilty on February 20, 2014 to Assault With a Dangerous Weapon. United States District Court Chief Judge Rossana Malouf Peterson sentenced Reevis to a forty-one month term of imprisonment, to be followed by a three year term of court supervision after he is released from Federal prison.
According to information disclosed during the court proceedings, on April 24, 2012, Reevis was at the home of the victim, who is the mother of his three children. Reevis became angry because the victim did not prepare his dinner quickly enough. Reevis left the home but quickly returned and began choking the victim. He then grabbed a large kitchen knife and threatened to kill the victim and would not allow her to leave the house. The victim managed to escape with her children but Reevis jumped in the victim's vehicle and again choked the victim. The victim drove to a family member's house and Reevis fled. He was arrested a short time later.
Michael C. Ormsby stated, "The United States Attorney's Office for the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively domestic violence crimes that occur in this District over which federal jurisdiction exists, including Indian Country. Domestic violence in Indian Country demands the attention of law enforcement, families, social service programs, and the community at large."
This investigation was conducted by FBI and the Spokane Tribal Police Department. The case was prosecuted by Rudy J. Verschoor, an Assistant United States Attorney for the Eastern District of Washington.
CR-13-00103-RMP
Webster Accountant Pleads Guilty to Bank Fraud, Identity TheftRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Joseph Karl Muller, 54, of Webster, N.Y., pleaded guilty before U.S. District Judge David G. Larimer to bank fraud and aggravated identity theft. The charges carry a mandatory minimum sentence of two years in prison, a maximum of 30 years, a fine of $1,000,000, or both.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Muller was an accountant in Webster who provided services to clients, including preparing tax returns. From April 2012 to August 2013, the defendant used personal identifying information that he stole from a client to prepare 46 fraudulent checks drawn on the client’s bank accounts. Muller then deposited the fraudulent checks into an account that he controlled, reaping a total of $127,287.
This plea is the culmination of an investigation by Special Agents of the Secret Service under the direction of Special Agent in Charge Tracy Gast.
Sentencing is scheduled for September 10, at 2:00 p.m. before Judge Larimer.Wanblee Man Sentenced for Assault and Making False StatementsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wanblee, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury and False Statements Relating to Health Care Matters was sentenced on May 15, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Robert George Quiver, Jr., age 22, was indicted by a federal grand jury on August 27, 2013, for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury. The charges related to Quiver and others using a hard blunt object and shod feet to repeatedly strike another male in the head during a fight on October 15, 2012. As a result of this assault, the victim suffered skull and nasal bone fractures requiring a craniotomy, and he remains permanently injured. Quiver pled guilty to the Assault Resulting in Serious Bodily Injury charge on February 5, 2014, and has been sentenced to 12 months and 1 day in custody, 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety.
Quiver was also indicted by a federal grand jury on December 3, 2013, for False Statements Relating to Health Care Matters and Attempt to Obtain Controlled Substances by Fraud. The charges related to Quiver presenting a false prescription for hydrocodone to a pharmacist at the Indian Health Services Pharmacy in Wanblee on July 11, 2013. He pled guilty to the False Statements Relating to Health Care Matters charge on February 5, 2014, and was sentenced to time served, 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
This case was investigated by the Department of Health and Human Services, Office of Inspector General.
The sentences in each case were ordered to run concurrently. Assistant U.S. Attorney Kathryn N. Rich prosecuted the cases.
Quiver was immediately returned to the custody of the U.S. Marshals Service.
U.S. Navy Petty Officer Based in Japan Pleads Guilty<br /> in International Bribery ScandalRead the Press Release
U.S. Navy Petty Officer First Class Daniel Layug pleaded guilty in the Southern District of California today to accepting more than $10,000 in cash, consumer electronics and travel expenses from a foreign defense contractor in exchange for classified and internal Navy information.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Laura Duffy of the Southern District of California, Director Andrew Traver of the Naval Criminal Investigative Service (NCIS) and Deputy Inspector General for Investigations James B. Burch of the U.S. Department of Defense Office of the Inspector General made the announcement.
Layug, 27, entered his plea before U.S. Magistrate Judge Karen S. Crawford to one count of conspiracy to commit bribery. He is the sixth defendant charged – and the third to plead guilty – in the alleged bribery scheme involving Singapore-based defense contractor Glenn Defense Marine Asia (GDMA), which provided port services to U.S. Navy ships in the Asia Pacific region.
“Today, U.S. Navy Petty Officer First Class Dan Layug admitted that he swapped classified U.S. Navy information for cash, luxury travel perks and electronic gadgets from a defense contractor,” said Acting Assistant Attorney General O’Neil. “In taking these under-the-table bribes, Layug put his own financial interests above those of the Navy and the country he vowed to serve. The Criminal Division, with our law enforcement partners, is committed to holding responsible those who were part of this massive fraud and bribery scheme that cost the U.S. Navy more than $20 million.”
“Every service member is entrusted with the enormous responsibility of protecting this country at all costs,” said U.S. Attorney Duffy. “Because of greed, Daniel Layug fell woefully short of that high calling, and this guilty plea holds him accountable for a painful betrayal.”
“The guilty plea of U.S. Navy Petty Officer First Class Dan Layug is part of an ongoing effort by the Defense Criminal Investigative Service and its law enforcement partners to bring to justice individuals who seek to enrich themselves at the expense of U.S. taxpayers,” said Deputy Inspector General Burch. “While the conduct of the vast majority of service members is beyond reproach, Defense Criminal Investigative Service will vigorously pursue individuals who betray the trust bestowed upon them.”
“Petty Officer Layug sold sensitive Navy information for monetary gain,” said NCIS Director Traver. “In doing so, he compromised the integrity of his position and the safety of his shipmates. NCIS will continue to work with DCIS and the U.S. Attorney's Office in investigating and prosecuting these crimes to the fullest extent possible.”
According to allegations in court documents, GDMA owner and CEO Leonard Glenn Francis and his cousin, GDMA executive Alex Wisidigama, enlisted the clandestine assistance of Navy personnel – including Layug, Commander Michael Vannak Khem Misiewicz, Commander Jose Luis Sanchez, and Naval Criminal Investigative Service Special Agent John Beliveau – to provide classified ship schedules and other sensitive U.S. Navy information in exchange for cash, travel expenses, and consumer electronics. GDMA allegedly overcharged the Navy under its contracts and submitted bogus invoices for more than $20 million in port services.
Court records state that Layug worked secretly on behalf of GDMA, using his position as a logistics specialist at a U.S. Navy facility in Yokosuka, Japan, to gain access to classified U.S. Navy ship schedules and then provided this information to GDMA’s vice president of global operations. Layug admitted he also provided pricing information from one of GDMA’s competitors.
In return, according to the plea agreement, GDMA gave Layug envelopes of cash on a regular basis. Layug admitted that he accepted a $1,000 monthly allowance from GDMA. On May 21, 2012, GDMA’s vice president of global operations instructed a GDMA accountant that “at the end of each month, we will be providing an allowance to Mr. Dan Layug. Total of US $1,000. You may pay him the equivalent in Yen. He will come by the office at the end of each month to see you.” Layug also admitted that he received luxury hotel stays for himself and others in Malaysia, Singapore, Indonesia, Hong Kong and Thailand.
Further according to the plea agreement, Layug asked GDMA for consumer electronics. In an email on March 9, 2012, Layug asked the vice president of global operations, “What are the chances of getting the new iPad 3? Please let me know.” In the plea agreement, Layug admitted that GDMA then provided him with an iPad 3.
In another email exchange on May 28, 2013, Layug asked the vice president of global operations for a “bucket list” of items including a high end camera, an iPhone5 cellular phone, a Samsung S4 cellular phone, and an iPad Mini. Shortly after sending his “bucket list” to the vice president of global operations, Layug stated in an email that “the camera is awesome bro! Thanks a lot! Been a while since I had a new gadget!”
Francis was previously charged with conspiring to bribe U.S. Navy officials. Wisidagama pleaded guilty on March 18, 2014, to defrauding the U.S. Navy.
Two other senior Navy officials – Commander Michael Vannak Khem Misiewicz, 46, and Commander Jose Luis Sanchez, 41 – have been charged separately with bribery conspiracies involving GDMA. On Dec. 17, 2013, NCIS Supervisory Special Agent John Bertrand Beliveau II, 44, pleaded guilty to conspiracy and bribery charges for regularly tipping off Francis to the status of the government’s investigation into GDMA.
The ongoing investigation is being conducted by NCIS, the Defense Criminal Investigative Service and the Defense Contract Audit Agency.
The case is being prosecuted by Director of Procurement Fraud Catherine Votaw and Trial Attorneys Brian Young and Wade Weems of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mark W. Pletcher and Robert Huie of the Southern District of California.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil, the DOD Hotline at www.dodig.mil/hotline , or call (800) 424-9098.U.S. Attorney Steven Dettelbach Honored for Efforts to Combat HeroinRead the Press Release
“The compassionate work of the individuals and programs we honor are truly inspiring,” remarked Harvey A. Snider, Esq., Board Chair, as nearly 350 guests witnessed the Alcohol, Drug Addiction and Mental Health Services (ADAMHS) Board of Cuyahoga County present awards during its Annual Meeting on Monday, May 19, 2014. “Their extraordinary contributions are helping children and adults with mental illness and addictions on their path to recovery.”
William M. Denihan, Chief Executive Officer, noted that “The actions of each of our recipients are helping to alleviate the stigma that is still too often associated with mental illness and addictions. Their achievements embody what community treatment and support is all about.”
The award recipients are:
Addiction Treatment Professional of the Year – Dennis Madden, Chief Executive Officer of Stella Maris for melding his human services, advocacy and leadership experience to help people living with heroin and other substance abuse issues, playing a significant role in the discussion to bring more sober beds to Cuyahoga County and for helping Stella Maris achieve yet another level of excellence.
Mental Health Professional of the Year - Barb Obiaya, Director of Family Support Services at the Achievement Centers for Children to honor her 38 years of experience assisting children and families cope and recover from mental illness, recognizing the importance of intervening as early as possible to take advantage of the critical developmental stages of children and educating others on the importance of this vulnerable age group.
Community Partner Collaboration Awards – Steven Dettelbach, US Attorney General for the Northern District of Ohio for his remarkable leadership and partnership with public systems to serve the community to end the heroin epidemic in Northeast Ohio by ensuring that there is a balance between the judicial system and the treatment system so that people abusing heroin will get the help they need, and that people selling this deadly drug will be taken off of the streets and for protecting children from the effects of violence through the Defending Childhood project.
Wally Clevenger for the tremendous amount of volunteer work he has exhibited in bringing young people who are in recovery from heroin addiction together to support one another and to share their stories with thousands of high school students about the consequences of heroin.
Rev. Dr. Howard Pippin, Jr., the pastor of Aldersgate United Methodist Church for making it clear that activities supportive of mental health and substance abuse recovery are welcome, striving to erase the stigma of mental health and addiction issues in the community and for promoting the relationship between spirituality and the recovery process.
Consumer/Client Involvement Award - Urban Goodness – a collaborative program of Connections; Health, Wellness, Advocacy that is a therapeutic community farming project operated by 20 people living with mental illness and/or substance abuse issues.
Family Involvement Award - Rob Brandt of Robby’s Voice for developing a prevention program to honor his son who died by heroin overdose and sharing their personal family story with the world in order to help others to not experience the same tragedy.
Legislator of the Year: Local Level – Cleveland City Councilman Joe Cimperman for his willingness to publically share his family’s story of dealing with his mother’s bi-polar disorder and how it affected his family to help others understand the importance of treatment and support services.
Legislator of the Year Award: State Level – State Representative Nickie Antonio for her concern with the quality of life for all people, working for human rights and equality and advocating for mental health and addiction issues in the State Budget Mid-biennium Review.
Contract Agency Collaboration - Seasons of Hope operated by Hitchcock Center for Woman for its uniqueness in offering a place where women with alcohol or drug-addiction who are in distress can go for help without feeling ashamed or alienated, and receive information about treatment when they are ready and serving over 400 individual women through 640 visits.
Media Award - Rita Andolsen, Director of Advocacy & Community Initiatives, WKYC TV3 for taking on the Heroin epidemic as one of the stations advocacy efforts and for organizing the “Heroin Epidemic, The Next Step” meeting consisting of representatives from the provider community, justice system and elected officials to discuss a strategy to combat heroin and for sitting on the Juvenile Safe Surrender planning committee.
Two Men Plead Guilty in Scheme to Burn Down House to Collect InsuranceRead the Press Release
Baltimore, Maryland – Saleh H. Fakhoury, age 48, formerly of Lutherville, Maryland, pleaded guilty today to his participation in a scheme to destroy his Maryland home by fire to collect $3 million in insurance proceeds. Hassan Hammoud, age 60, of Dundalk, Maryland pleaded guilty on May 16, 2014 to his participation in the conspiracy.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief James W. Johnson of the Baltimore County Police Department; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to their plea agreements Fakhoury owned a home in Lutherville Maryland. In 2007, Fakhoury bought a second home in Florida. By March 2009, Fakhoury owed over $200,000 to credit card companies, utilities and other service providers, as well as over $1.7 million to banks for the mortgages on the properties he owned.Hammoud worked for Fakhoury at Alfeo’s, a pizza restaurant owned by Fakhoury. Fakhoury and Hammoud schemed to destroy Fakhoury’s home in Lutherville by arson. Fakhoury intended to collect the insurance and pay off his debts. Fakhoury agreed to pay Hammoud $20,000 to set his home on fire.
On March 12 or 13, 2009, a fire was deliberately set at the Lutherville home. The fire self-extinguished and minimal damage was sustained. On March 14, 2009, a second fire was deliberately set using paint thinner. The home was completely destroyed.
Fakhoury and Hammoud discussed their financial arrangement for the arson. The two agreed that when the insurance company paid Fakhoury, Fakhoury would pay $50,000 and the money would be sent overseas.
In September 2009, Fakhoury executed a sworn proof of loss to collect $3,155,197 in insurance. The loss statement was false, in that it claimed items were destroyed or damaged in the fire when, in fact, the items were not consumed in the fire, and the fire was intentionally set. The insurance company denied the claim but paid $828,773 to the mortgagor of the Maryland home. On December 2, 2011, Fakhoury filed a civil action against the insurance company in an effort to recover monies under the insurance policy, and claiming over $3 million in compensatory damages. As part of his plea agreement, Fakhoury has agreed to dismiss the lawsuit.
Fakhoury and Hammoud face a maximum sentence of 20 years in prison followed by three years of supervised release and a $250,000 fine for conspiring to use fire to commit a federal felony. U.S. District Judge James K. Bredar scheduled Fahhoury’s sentencing for September 4, 2014 at 2:00 p.m. and Hammoud’s sentencing for August 25, 2014 at 10:00 a.m.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore County Police Department and IRS - Criminal Investigation for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Sandra Wilkinson and Judson T. Mihok, who are prosecuting the case.Two Admit Roles in Multimillion-Dollar International Cybercrime SchemeRead the Press Release
TRENTON, N.J. – Two members of an alleged international cybercrime, identity theft and credit card fraud conspiracy today admitted their roles in a scheme to use information hacked from customer accounts at more than a dozen banks, brokerage firms, payroll processing companies and government agencies to attempt to steal $15 million from customers, U.S. Attorney Paul J. Fishman announced.
Richard Gundersen, 47, of Brooklyn, N.Y., pleaded guilty to an indictment charging him with one count of conspiracy to commit wire fraud, access device fraud and identity theft. Lamar Taylor, 38, of Salem, Mass., pleaded guilty to an information charging him with one count of conspiracy to commit wire fraud, access device fraud and identity theft. Both defendants entered their guilty pleas before U.S. District Judge Peter G. Sheridan in Trenton federal court.
According to documents filed in the case and statements made in court:
Both Gundersen and Taylor were asked by other members of the conspiracy to participate in a scheme to “cash out” bank accounts and pre-paid debit cards opened in the names of others. Oleksiy Sharapka, 34, of Kiev, Ukraine, allegedly directed the conspiracy with the help of Leonid Yanovitsky, 39, also of Kiev. Oleg Pidtergerya, 50, who previously pleaded guilty to his role in the conspiracy, managed a cash-out crew in New York for Sharapka and Yanovitsky, and Robert Dubuc, 41, who has also pleaded guilty to his role in the conspiracy, controlled a cash-out crew in Massachusetts. Gundersen worked as “casher” under Pidtergerya, while Taylor performed a similar role under Dubuc.
Hackers first gained unauthorized access to the bank accounts of customers of more than a dozen global financial institutions and businesses, including: Aon Hewitt; Automatic Data Processing Inc.; Citibank N.A.; E-Trade; Electronic Payments Inc.; Fundtech Holdings LLC, iPayment Inc.; JP Morgan Chase Bank N.A.; Nordstrom Bank; PayPal; TD Ameritrade; U.S. Department of Defense, Defense Finance and Accounting Service; TIAA-CREF; USAA; and Veracity Payment Solutions Inc.
After obtaining unauthorized access to the bank accounts, Sharapka and Yanovitsky diverted money from them to bank accounts and pre-paid debit cards they controlled. They then implemented a sophisticated cash-out operation, employing crews of individuals, including Gundersen and Taylor, to withdraw the stolen funds by making ATM withdrawals and fraudulent purchases in New York, Massachusetts, Illinois, Georgia and elsewhere. Both Sharapka and Yanovitsky are under indictment in the United States and remain at large.
Gundersen and Taylor admitted they were aware fraudulent accounts and cards were created without the consent of the individuals in whose names they were opened. They admitted that they opened bank accounts in the names of identity theft victims and that those accounts were funded with money stolen by other conspirators. They also admitted conducting ATM and bank withdrawals of the stolen funds and providing the proceeds of the fraud, less their own fees, to their immediate higher-ups in the organization – Pidtergerya and Dubuc, who, in turn, sent a portion of the proceeds to Sharapka and Yanovitsky in Ukraine.
The government’s ongoing investigation into the organization has so far identified attempts to defraud the victim companies and their customers of more than $15 million.
The conspiracy to commit wire fraud, access device fraud and identity theft count carries a maximum potential penalty of five years in prison and a maximum $250,000 fine, or twice the gross gain or loss from the offense. Gundersen and Taylor’s sentencings are scheduled for Sept. 3, 2014.
U.S. Attorney Fishman credited the special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; U.S Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees; Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Jeffery D. Thorpe, Cyber Field Office; and IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty pleas.
The government is represented by Economic Crimes Unit Chief Gurbir S. Grewal of the
U.S. Attorney’s Office in Newark.The charges and allegations concerning the remaining conspirators are merely allegations and they are presumed innocent unless and until proven guilty.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
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Defense counsel:
Gundersen: Cynthia Hardaway Esq., Newark
Taylor: Bruce Rosen Esq., Florham Park, N.J.Gundersen, Richard Indictment
Taylor, Lamar InformationThree Buffalo Women Plead Guilty to Bank FraudRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Carlique Deberry, 35, Sayonara Heath, 32, Sade Heath, 27, all of Buffalo, N.Y. pleaded guilty to bank fraud before U.S. Magistrate Judge Leslie G. Foschio. The charge carries a maximum sentence of 30 years in prison, a fine of $1,000,000 or both.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that the defendants were part of a conspiracy to defraud local area banks by participating in a “check kiting” scheme. The defendants would open bank accounts and deposit large checks to the accounts. The deposited checks were written on accounts that had insufficient funds or on accounts that had been closed. Before the banks could determine that the checks were not supported by any funds, the defendants would withdraw smaller amounts from the accounts. Although the defendants made away with only $390.95, the amount of the intended loss was more than $40,000.
The pleas are the culmination of an investigation by the United States Secret Service, under the direction of Special Agent in Charge Tracy Gast.
Sentencing will be scheduled at a later date before Chief U.S. District Judge William M. Skretny.
Texas Man Pleads Guilty to Conspiring to Smuggle<br /> and Traffic Counterfeit Viagra TabletsRead the Press Release
A Texas man pleaded guilty today to conspiring to smuggle and to traffic in counterfeit and misbranded pharmaceuticals, including Viagra tablets, from China, announced Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Nasif Baqla, 26, of Houston, pleaded guilty before U.S. District Judge Nancy F. Atlas in the Southern District of Texas to one count of conspiracy to traffic in counterfeit goods, to introduce misbranded prescription drugs into interstate commerce and to import such goods contrary to U.S. law.
Baqla was indicted on Aug. 22, 2012, as were two other individuals – Jamal Khattab, 49, of Katy, Texas, and Fayez Al-Jabri, 45, of Chicago – in a separate, but related case. Khattab and Al-Jabri each pleaded guilty on Dec. 3, 2013, and March 21, 2014, respectively, to the same conspiracy charge as Baqla, as well as trafficking in counterfeit goods and introducing counterfeit drugs into interstate commerce in violation of the Food, Drug and Cosmetic Act.
According to court documents, in July 2010, a package of counterfeit Viagra tablets was shipped from China to Houston, intended for Baqla and Khattab. The package was intercepted by Customs and Border Protection officers. Baqla claimed the pills were his and that he received them on behalf of a friend. Although the tablets were marked with trademarks substantially indistinguishable from the genuine marking on a legitimate Viagra pill, the drugs in the package were counterfeit and misbranded.
This matter was investigated by Homeland Security Investigations, the Food and Drug Administration - Office of Criminal Investigations, Diplomatic Security Service and police departments in Houston and Chicago. The case is being prosecuted by Assistant Deputy Chief for Litigation John Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Kebharu Smith of the Southern District of Texas.Tampa Woman Indicted on 24 Counts of Tax FraudRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Erica Lambert with one count of conspiracy to defraud the United States Treasury and to commit wire fraud, 15 counts of wire fraud, and eight counts of aggravated identity theft, all in connection with filing fraudulent tax returns in other people’s names. If convicted, she faces a maximum penalty of five years in federal prison on the conspiracy charge, ten years on each wire fraud charge, and 2 consecutive years’ imprisonment on the aggravated identity theft offenses. The indictment also notifies Lambert that the United States intends to forfeit any assets that are alleged to be traceable to proceeds of the offense. Lambert was arrested and made her initial appearance on May 19, 2014.
According to the indictment, Lambert, and others, electronically filed false tax returns, each claiming fraudulent refunds, using stolen and fraudulently-obtained means of identification of others. Lambert and others kept track of the fraudulently-filed returns and refunds in detailed ledgers. The fraudulent tax refunds came in the form of U.S. Treasury checks and debit cards, which Lambert and others used to obtain cash and goods for their other personal use.
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 Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, the Hillsborough County Sheriff’s Office and the Tampa Police Department. It will be prosecuted by Assistant United States Attorney Kelley Howard-Allen.
This case was brought as part the Tampa Bay Identity Theft Alliance, an initiative dedicated to combating the scheme of using stolen identities to file fraudulent federal income tax refund claims. The United States Attorney's Office for the Middle District of Florida, the United States Secret Service, the United States Postal Inspection Service, Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation, the Tampa Police Department and the Hillsborough County Sheriff's Office are working together on this joint investigative and enforcement effort.
Star Man Sentenced to More Than Twenty Years in Federal Prison for Drug Conspiracy and Shooting Someone in Furtherance of the ConspiracyRead the Press Release
Two Defendants Sentenced in Large Drug Case
BOISE – U.S. Attorney Wendy J. Olson announced sentencing of Jeramie Ethan Mahler, 27, of Star, Idaho, and Carlos Eberardo Tovar, 28, of Nampa, Idaho. U.S. District Judge Edward J. Lodge sentenced Mahler to 247 months in prison for conspiring to distribute methamphetamine and for discharging a firearm in furtherance of the drug trafficking crime. He pleaded guilty to the charges on March 3, 2014. Judge Lodge sentenced Tovar to 87 months in prison for distributing methamphetamine. He pleaded guilty to the charge on March 3, 2014.
Mahler admitted that he and other co-defendants agreed to distribute methamphetamine beginning in approximately January 2013. Mahler and others continued to distribute methamphetamine for several months. Mahler admitted that the conspiracy involved over 500 grams of methamphetamine. Mahler faced a ten-year mandatory minimum sentence for the drug conspiracy because of the large amount of methamphetamine involved. Mahler also admitted that he shot another person on March 25, 2013, in furtherance of the drug conspiracy, because of a dispute with that person about the quality of the methamphetamine. The shooting occurred alongside a road in south Ada County near Amity and Linder roads. Mahler and two co-defendants fled the scene leaving the injured man behind. A Canyon County Sheriff’s deputy stopped a vehicle that Mahler was driving eight days later, on April 2, 2013. Mahler was arrested and the vehicle was searched. Inside, deputies found two handguns and approximately one-quarter pound of methamphetamine. A forensic examination later confirmed that one of the handguns located in the vehicle was the same gun used in the shooting on March 25. Mahler faced a consecutive mandatory sentence of ten years for discharging the firearm in furtherance of the conspiracy. In addition to the 250 month prison sentence, Mahler was sentenced to five years of supervised release.
According to court documents, Tovar conspired with Mahler and others to distribute methamphetamine. Tovar sold methamphetamine to an undercover police officer on several occasions. On February 7, 2013, Tovar sold the officer approximately four ounces of methamphetamine for $3,700. The Drug Enforcement Administration later tested the methamphetamine and determined it was 99% pure.
Co-defendant Juan Luis Mojica-Barragan will be sentenced on May 21, 2014, for his part in the conspiracy. He pleaded guilty on February 27, 2014. The charge that Mojica-Barragan pleaded guilty to is punishable by up to twenty years in prison, a $1 million fine, and at least three years of supervised release.
Mahler, Tovar, Mojica-Barragan, and eight other individuals were indicted on July 9, 2013, in a case including charges of conspiracy to distribute methamphetamine, distribution of methamphetamine, distribution of cocaine, and unlawful possession of firearms. The defendants are responsible for distributing pounds of methamphetamine within the community. During the investigation, law enforcement agents seized twelve firearms, including a stolen firearm, and an illegal fully-automatic machine gun. All eleven defendants have pleaded guilty. Co-defendants Wendy Harrison and Bobbi Eileen Woolsey were both sentenced to 84 months in prison; Nearia Pinnell was sentenced to 33 months in prison; Daniel Vaughan was sentenced to 80 months in prison; Darrell Zirschky was sentenced to 168 months in prison; and Michelle Ritch was sentenced to 120 months. Mojica-Barragan, Hernan Gomez-Gutierrez, and Scott Hernandez have not been sentenced yet.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force, which is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. Other agencies that contributed to this investigation include the Drug Enforcement Administration, Nampa Police Department, Caldwell Police Department, Canyon County Sheriff’s Office, and Ada County Sheriff’s Office.
The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
St. John Man Arrested and Charged with Bank FraudRead the Press Release
St. Thomas, USVI – Davidson L. Alfred, 51, of St. John was arrested today and charged with bank fraud, announced United States Attorney Ronald W. Sharpe. Alfred appeared in District Court before U.S. Magistrate Judge Ruth Miller on Wednesday and was remanded to the custody of the United States Marshals Service pending a detention hearing scheduled for Wednesday, May 21, 2014.
According to the criminal complaint filed in District Court, Alfred presented forged checks to Banco Popular and FirstBank branches in St. Thomas, Virgin Islands. More specifically, Alfred presented eight fraudulent checks totaling $23,150 to Banco Popular and two checks totaling $6,300 to First Bank during a two-month period of time.
If convicted of the offenses charged in the criminal complaint, Alfred faces a statutory maximum sentence of 30 years in prison.
The public is reminded that a criminal complaint is merely a charging document and is not evidence of guilt. A defendant is presumed innocent until proven guilty.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Kim L. Chisholm.
Sioux Falls Man Sentenced for 26 Investment Fraud FeloniesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, man convicted of 26 felony fraud charges was sentenced on May 19, 2014, by U.S. District Judge Karen E. Schreier.
Randal Kent Hansen, age 66, was sentenced to 108 months in custody, 3 years of supervised release, and a $2600 special assessment to the Federal Crime Victims Fund. Restitution of an amount to be determined will be decided in the next ten days.
Hansen was indicted for Conspiracy to Commit Wire Fraud and Mail Fraud, and also Wire Fraud and Mail Fraud by a federal grand jury on May 8, 2013. On January 22, 2014, a federal jury found him guilty of Conspiracy to Commit Wire Fraud and Mail Fraud, four counts of Wire Fraud, and 21 counts of Mail Fraud.
The case involved the investigation of a hedge fund known as RAHFCO Funds, Limited Partnership, and RAHFCO Growth Fund, Limited Partnership. As president of the fund, Randy Hansen collected money from over a hundred investors that totaled over $20 million dollars. Investors were told that only a small portion of the money would be used to make trades on the futures market for the S&P 500, that the rest was securely invested in government securities, and that they could withdraw funds at will. The fund operated from 2007 until April 2011, when one of Hansen’s co-conspirators turned himself into authorities. The investigation revealed that the fund was operating in a Ponzi-like fashion, with new investor money being used to pay off existing investors seeking to withdraw funds. Ultimately, investor losses have exceeded $18 million.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Hansen is to self-surrender to the U.S. Marshals Service in June 2014 to begin serving his sentence.
Sex Offender Sentenced to More Than 17 Years in Prison for Distributing Child PornographyRead the Press Release
OAKLAND – Terry Howell was sentenced yesterday to 210 months in prison for distribution of child pornography, announced United States Attorney Melinda Haag and Tatum King, Acting Special Agent in Charge for U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in San Francisco.
Howell pleaded guilty on Feb. 10, 2014, to distributing child pornography to a person in another state, using his e-mail account. According to the plea agreement, Howell also admitted that he received child pornography images and videos through his email account on five occasions. Howell admitted that his cellular telephone, at the time he was arrested, contained over 80 videos and over 550 images depicting minors engaging in sexually explicit conduct, including minors being subjected to sadistic conduct.
Court documents indicate that Howell was trading child pornography materials with another man who had two prior convictions for child pornography offenses, and that Howell’s email messages contained graphic descriptions of his desire to commit extreme violence against a child. At the time Howell committed the child pornography offenses charged in this case, he had prior convictions for sexual offenses against a child.
“This case should serve as a stern warning to those who mistakenly believe cyberspace affords them anonymity and they can use the Internet to sexually exploit children with impunity,” said Tatum King, acting special agent in charge for U.S. Immigration and Customs Enforcement ICE Homeland Security Investigations HSI. “Online predators should be on notice that ICE Homeland Security Investigations will do everything in its power and use every tool at its disposal to track them down and ensure that they are brought to justice.”
The sentence was handed down by the Honorable Claudia Wilken, Chief United States District Court Judge, following a guilty plea to a violation of distribution of child pornography, in violation of 18 U.S.C. 2252(a)(2). Judge Wilken also sentenced Howell to a ten year period of supervised release. Special conditions of Howell’s supervised release include: sex offender-specific treatment; registration with the state sex offender registration agency; suspicionless search of Howell’s residence and property; and no contact with any child under the age of 18. The defendant has remained in custody since his arrest on Sept. 13, 2013, and will begin serving the sentence immediately.
Christina McCall is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Vanessa Quant and Noble Hughes. The prosecution is the result of an investigation by ICE HSI.
(Howell indictment )
Serial Bank Robber Sentenced to 14 Years in PrisonRead the Press Release
MINNEAPOLIS— Yesterday in federal court in St. Paul, United States District Court Judge
Susan Richard Nelson sentenced Sheikh Bilaal Muhammad Arafat, formerly known as Mark
Edward Wetsch, to 168 months in federal prison for committing a series of bank robberies in
2011 and 2012. In late April and early May 2013, Arafat, dubbed the “Man-in-Black” bank robber,
pleaded guilty to six counts of bank robbery. Arafat also admitted responsibility for 25
additional bank robberies that occurred in the southern half of Minnesota in 2011.In his plea agreement, Arafat admitted that from January 11, 2011, to January 3, 2012, he robbed 31
banks in Minnesota while wearing a black mask and brandishing a firearm believed to be real.
During the e robberies, Arafat took more than $110,000, in total, from the 31 banks.This case was the result of an investigation by the Federal Bureau of Investigation and the police
departments of Alexandria, Bloomington, Columbia Heights, Eden Prairie, Faribault, Gaylord,
Hastings, Hopkins, Minneapolis, Northfield, Orono, Prior Lake, Richfield, Savage, St. Paul, St.
Peter, and Shakopee; the sheriff’s departments of Carver, Dakota, Hennepin, Ramsey, Nicollet,
Nobles, Sibley, and Wright counties; and with assistance from the Minnesota State Patrol. The case
was prosecuted by Assistant United States Attorneys Deidre Y. Aanstad and
Kevin S. Ueland.Sacramento Man Sentenced for Sex Trafficking of A MinorRead the Press Release
SACRAMENTO, Calif. — Justin Isaac Jackson, 24, of Sacramento, was sentenced today by United States District Judge John A. Mendez to 11 years and four months in prison for sex trafficking of a minor, United States Attorney Benjamin B. Wagner announced.
According to court documents, from January to April 2009, Jackson acted as a pimp for a 16-year-old runaway girl in Sacramento and Santa Cruz. Although he was aware of her age, he purchased motel rooms for her use, drove her to meetings with customers, and provided her with a phone to use to coordinate her prostitution activities. In exchange, Jackson received some of the money that she earned. On April 26, 2009, police stopped Jackson while he was driving a car with the girl and an adult prostitute and arrested him.
At sentencing, Judge Mendez told Jackson that the 135-month sentence was warranted because his conduct reflected “a level of callousness and cultural acceptance of juvenile prostitution that is alarming. As an adult, Jackson thought nothing of promoting the prostitution activities of a young girl he knew to be troubled. Where others would seek to protect, Jackson chose to exploit.”
Supervisory Special Agent Maria Johnson of the Sacramento FBI stated: “Jackson used his victim’s vulnerability and naiveté to coerce her into an exploitive and abusive situation that no minor should ever experience. The FBI and its Child Exploitation Task Force partners are united and committed to identifying and recovering victims of child sex trafficking. We hope that a sense of normalcy will eventually be restored to these minors.”
This case is the product of an investigation by the Federal Bureau of Investigation’s Innocence Lost Task Force, a task force composed of the FBI, the Sacramento Police Department, and the Sacramento County Sheriff. Assistant United States Attorney Kyle Reardon prosecuted the case.This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Rutland Man Sentenced to 46 Months in Federal Prison for Firearms OffenseRead the Press Release
The Office of the United States Attorney for the District of Vermont, stated that on May 19, 2014, Thomas J. Rougier, Jr., 23, of Rutland, Vermont, was sentenced to 46 months in prison for possessing stolen firearms. United States District Judge J. Garvan Murtha, sitting in Brattleboro, Vermont also ordered Rougier to serve two years of supervised release following his prison sentence.
According to court records, in September of 2013, Rougier stole approximately seven handguns from a residence in Weybridge, Vermont. Shortly thereafter, Rougier traded a number of the stolen handguns to drug dealers in the Rutland area for heroin and cocaine. Law enforcement was able to recover three of the stolen handguns.
Rougier was arrested on September 6, 2013 and a federal grand jury in the District of Vermont returned an indictment against him on September 19, 2013. Rougier pled guilty to possessing stolen firearms on January 27, 2014. He has been in custody since his arrest.
The statutory maximum for Rougier’s offense is ten years in prison. Pursuant to the advisory U.S. Sentencing Guidelines, Rougier faced between 57 and 71 months in prison. Because of the gravity of Rougier’s offense and his significant criminal record, which includes multiple instances of violent or threatening conduct, the United States asked Judge Murtha to impose a term of 70 months. In sentencing Rougier to a term of imprisonment 11 months below the low end of the Guidelines range, Judge Murtha noted, among other factors, Rougier’s difficult childhood.
United States Attorney Tristram J. Coffin commended the efforts of the Bureau of Alcohol Tobacco Firearms and Explosives, the Rutland City Police Department, and the Vermont State Police for their hard work and coordinated efforts on this investigation. The prosecutor is Assistant United States Attorney Timothy C. Doherty, Jr.
Rougier is represented by Assistant Federal Public Defender Steven Barth.
United States Attorney Coffin noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Neighborhood, a nationwide commitment to reduce gun crime in America. Led by the U.S. Attorney’s Office and the Bureau of Alcohol Tobacco, Firearms and Explosives, Project Safe Neighborhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who violate federal gun laws. For more information about Project Safe Neighborhood and Project Safe Vermont, please visit: www.psn.gov.Rosebud Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man convicted of Assault by Striking, Beating, or Wounding was sentenced on May 12, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Melvin Floyd Hollow Horn Bear, age 39, was sentenced to time served, 1 year of supervised release, and was ordered to pay a $25 special assessment to the Federal Crime Victims Fund.
In March 2013, at Pine Ridge, Hollow Horn Bear struck a man repeatedly with a blunt object, causing cuts on the man’s face and head that required stitches.
The investigation was conducted by the Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. The case was prosecuted by Assistant U.S. Attorney Sarah B. Collins.
Rochester Man Pleads Guilty to Making False Statements on Naturalization ApplicationRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Tuffek Mohammed Ali Saleh, 41, a citizen and national of Yemen, pleaded guilty to making a false statement on an immigration document before U.S. District Court Judge Charles J. Siragusa. The charge carries a maximum penalty of 10 years in prison, and a fine of up to $250,000.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the complaint, in April 2012, the defendant applied for U.S. Citizenship under the name Yehya Muthana Ali. During the processing of Saleh's application, it was determined that the defendant had previously applied to enter the United States using a different identity, including a different name and date of birth.
During the investigation, officials from the Department of Homeland Security conducted an immigration interview with the defendant. During this interview, the defendant was again asked several times about his identity, and he repeatedly denied ever using another name to try to enter the United States.
The plea is the culmination of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the New York State Police, under the direction of Major Mark Koss, and the United States Department of State, Diplomatic Security Service, under the direction of Resident Special Agent in Charge, Andrew Wright.
Sentencing is scheduled for August 22, 2014 before Judge Siragusa.Rochester Man Pleads Guilty to Fraud ChargesRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Chauncee McFarland, 35, of Rochester, N.Y., pleaded guilty before U.S. District Judge David G. Larimer to conspiracy to defraud the United States, and a scheme to defraud insurance premium finance companies. The charges carry a maximum sentence of 20 years in prison.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that from 2010 to 2012, McFarland owned McFarland Tax Company, a tax return preparation business. The defendant conspired with an employee, Kenyatta Hubbard, to prepare false income tax returns for clients. McFarland and Hubbard reported fictitious employment in order to increase the Earned Income Tax Credit refunds claimed on behalf of the clients. As a result of the scheme, the Internal Revenue Service paid tax refunds totaling $391,888.
Thereafter, from September 2012 to September 2013, acting on his own as a licensed insurance broker, McFarland devised a scheme to defraud premium finance companies. Premium finance companies engage in the business of lending money to finance insurance policy premiums for clients. McFarland prepared fraudulent premium finance agreements that falsely represented that he was seeking to obtain financing for purported clients. Based upon the fraudulent documents, the companies provided the requested financing. The defendant then diverted the financing to his personal use, and did not use it to purchase insurance policies for any clients. McFarland obtained $29,634 through this scheme.
Kenyatta Hubbard was convicted for her role in the conspiracy to prepare false income tax returns for clients and is awaiting sentencing.
The plea is the culmination of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office, Special Agents of the U.S. Postal Inspection Service, Boston Division, under the direction of Acting Inspector in Charge, Shelly A. Binkowski, and Investigators of the New York State Department of Financial Services, under the direction of Superintendent Benjamin Lawsky.
McFarland will be sentenced on September 9, at 10:00 a.m. before Judge Larimer.Poland Man Sentenced to Probation for Stealing VA Travel BenefitsRead 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 Steven
Chartier, 58, of Poland, Maine, was sentenced yesterday in U.S. District Court by Judge Nancy
Torresen to three years of probation with six months of home detention for submitting false
claims to the U.S. Department of Veterans Affairs (VA) for travel benefits. He was also ordered
to pay $10,448.06 in restitution. Chartier pled guilty to the crime on September 26, 2013.
According to court records, the defendant claimed travel benefits for 64 260 mile trips
from Limestone, Maine, in Aroostook County, to the Togus V.A. Medical Center, in Gardiner,
for the purpose of receiving medical treatment. In fact, the defendant lived in Poland, Maine,
which is about 40 miles from the VA hospital. As a result, the defendant received $10,448.06
more than he was entitled to for travel.
In fashioning the sentence, Judge Torresen observed that fraud was not new to the
defendant and stated that she would have jailed him but for the cost to the taxpayers given his
deteriorated, wheelchair-bound, medical condition.
The case was investigated by the VA, Office of Inspector General.Pittsburgh Man Sentenced to 12 Years in Prison for Sex Trafficking of A ChildRead the Press Release
PITTSBURGH - A Pittsburgh resident has been sentenced in federal court to 144 months imprisonment, to be followed by five years of supervised release, on his conviction of sex trafficking of a child, United States Attorney David J. Hickton announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on William Miller, 37.
The superseding indictment in the case charged that from in and around December of 2011, to on or about Feb. 10, 2012, Miller knowingly recruited, enticed, harbored, transported, provided and obtained a homeless, 15-year-old minor, Jane Doe, to engage in a commercial sex acts and produced visual depictions of the minor engaged in sexually explicit conduct. Miller was arrested when he drove and accompanied the minor to a date with an undercover City of Pittsburgh Police Detective at the Quality Inn Hotel in Oakland. At sentencing, Judge Ambrose stated that the 12-year sentence should be a “general deterrent but also a personal deterrent to Mr. Miller.”
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the City of Pittsburgh Police Department for the investigation leading to the successful prosecution of Miller.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Pine Ridge Woman Sentenced for Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, woman convicted of Felony Child Abuse and Neglect was sentenced on May 12, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Cheryl Jealous of Him, age 51, was sentenced to 14 years of imprisonment, 3 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $13,846.94 in restitution to the South Dakota Crime Victims' Compensation Program.
In April 2013, at Pine Ridge, Jealous of Him caused the death of her infant grandson by subjecting him to multiple blunt force trauma. At the time of the incident, Jealous of Him was intoxicated while the grandson was under her care.
The investigation was conducted by the Federal Bureau of Investigation, the Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. The case was prosecuted by Assistant U.S. Attorney Sarah B. Collins.
Jealous of Him was immediately turned over to the custody of the U.S. Marshals Service.
Orlando Man Sentenced to 8 Years for Credit Card FraudRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. yesterday sentenced Sirrico Lewis (42, Orlando) to 8 years in federal prison for access device fraud. Lewis was also ordered to pay $754,864.55 in restitution and to serve a 3-year term of supervision, following his release from prison. Lewis pleaded guilty to an Information in December 2013.
According to court documents, Lewis and others engaged in a scheme to defraud several Central Florida area Sam’s Clubs and Wal-Mart stores through the fraudulent acquisition of duplicate Sam’s Club credit cards, and the subsequent use of those credit cards. To facilitate the crimes, a conspirator would manufacture counterfeit identification documents of existing Sam’s Club customers. Lewis and others then obtained those counterfeit identification documents, took them to various Sam’s Clubs, and used them to obtain duplicate credit cards on existing accounts. The co-conspirators then used those credit cards to make fraudulent purchases at area Sam’s Club and Wal-Mart stores, or they turned the cards over to another conspirator who would either make fraudulent purchases or get another person to do so. The fraudulently-purchased items would be sold, with the proceeds from those sales being divided amongst the conspirators. The total amount of actual loss suffered by the victims of this scheme is over $2 million. Of that amount, Lewis was involved in over $750,000 in fraudulent transactions.
Lewis is the second individual to be sentenced in this case. On October 30, 2012, Reginald Holley pleaded guilty to access device fraud. Holley was sentenced to 46 months in federal prison on January 14, 2013.
These cases were investigated by the United States Secret Service. They were prosecuted by Assistant United States Attorney Roger B. Handberg.
Newark Man Sentenced on Child Pornography ChargesRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that David Mullie, 51, of Newark, N.Y., who was convicted of possession of child pornography, was sentencing to 60 months in prison and 20 years of supervised release by U.S. District Court Judge Charles J. Siragusa.
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that a family member alerted police after finding sexually explicit photos on the defendant's computer. Newark Police began an investigation and then notified Homeland Security Investigations for assistance. Federal agents executed a search warrant and seized several computers from Mullie’s home. A forensic analysis of the computers found more than 600 images of children, including prepubescent children, being sexually abused.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentencing is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, and officers of the Newark Police Department, under the direction of Chief David L. Christler.Nebraska LECC Criminal Justice ConferenceRead the Press Release
The 27th annual Nebraska Law Enforcement Coordinating Committee (LECC) Criminal Justice and County Attorney’s Conference is being held in Kearney, Nebraska May 21-23, 2014 with more than 300 local, state, and federal law enforcement officials and prosecutors attending.
The conference is designed to bring training to law enforcement officials and prosecutors in the latest topics impacting the criminal justice system. The conference is annually hosted by the United States Attorney's Office, Nebraska County Attorneys Association and the Nebraska Sheriffs Association.
This year’s topics include:
- Role and Function of the DMV in Fraud and Criminal Matters
- Law Enforcement and the Media
- Case Study on the Gang Recruitment Statute
- Child Porn “Pedo Board” - International Child Pornography Case Study
- Synthetic Drugs/K2 drugs
- Immigration Issues
- Preventing and Handling In-Custody Deaths
- Biohazard Concerns at Crime Scenes
- Juries and Social Media
- Hate Crimes
Awards will be presented during the Thursday evening (May19th) banquet by United States Attorney Deborah R. Gilg, to criminal justice officials for their outstanding contributions to the criminal justice system and their communities.
Mt. Morris Man Pleads Guilty in Child Pornography CaseRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Patrick Welch, 58, of Mt. Morris, N.Y., pleaded guilty before U.S. District Judge Charles J. Siragusa to possession of child pornography, receipt of child pornography and distribution of child pornography. Due to a prior conviction, the charges carry a mandatory minimum penalty of 15 years in prison, a maximum of 40 years and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that on May 13, 2013, the Livingston County Sheriff's Office received a lead from the Los Angeles County Sheriff's Office concerning a potential child exploitation case. A Los Angeles County Sheriff's investigator had received a cyber tip from the National Center for Missing and Exploited Children that two individuals appeared to be chatting about and trading child pornography on a certain internet site. Both individuals purported to be teenaged boys.
One of the individuals chatting used the screen name "David D." A search warrant was executed on the provided email account and images of child pornography were found. The internet protocol address for "David D" was registered to Welch's address on Scipio Road in Mt. Morris. After a search warrant was executed at the defendant's residence, a forensic review of one of Welch's computers was conducted and images of child pornography were found.
In 2003, the defendant was convicted in Livingston County of sexual conduct against a child and, following his conviction, he was required to register as a sex offender.This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Sentencing is scheduled for September 9, 2014 before Judge Siragusa.
The plea is the culmination of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the Livingston County Sheriff's Department, under the direction of Sheriff Thomas J. Dougherty, and the Los Angeles County Sheriff's Department, under the direction of John L. Scott.Missouri Man Pleads Guilty to Failing to Update His Sex Offender RegistrationRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced that John Mark Phillips, 50, of Springfield, Mo., pleaded guilty Monday before U.S. District Judge S. Maurice Hicks, for failing to update his sex offender registration.
According to evidence presented at the guilty plea, Phillips was convicted in Christian County Missouri on September 22, 1995, for sexual abuse of a victim under the age of 14. In 2011, he failed to register as a sex offender and was given an 18-month federal sentence for the offense. On May 2, 2013, U.S. Probation Officers in Missouri transmitted a notice that Phillips had left his Springfield, Mo., residence. On May 3, 2013, a warrant was issued for Phillips’ arrest, and Shreveport police arrested him later that same day.Phillips faces up to 10 years in prison, five years to life of supervised release, and a $250,000 fine for one count of failure to update sex offender registration. A sentencing date of September 10, 2014 has been set.
The U.S. Marshals Service, Western District of Missouri U.S. Office of Probation, and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case.
Milwaukee Man Indicted for Sex TraffickingRead the Press Release
Today a federal grand jury in Milwaukee returned a two count indictment charging Paul Carter, aka Pimpin’ Paul, with sex trafficking offenses dating from 2012 through 2013, the Justice Department announced.
Carter, 44, of Milwaukee, is charged with one count of sex trafficking of an adult female by force, threats of force, fraud and coercion. Carter is also charged with one count of sex trafficking of a minor. Carter allegedly used force, threats of force, fraud and coercion to cause the victim to engage in a commercial sex act while knowing that the victim was under the age of 18. If convicted, Carter faces a statutory maximum sentence of life in prison on each charge.
The case was investigated by the Human Trafficking Task Force for the Eastern District of Wisconsin, which includes law enforcement officers from the FBI, Homeland Security Investigations, Wisconsin Division of Criminal Investigation and the Milwaukee Police Department. The case is being prosecuted by Assistant U.S. Attorney Karine Moreno-Taxman of the Eastern District of Wisconsin and Trial Attorney Daniel H. Weiss of the Civil Rights Division's Human Trafficking Prosecution Unit.
An indictment is merely an accusation, and the defendant is presumed innocent until proven guilty.
Milwaukee Man Indicted for Sex TraffickingRead the Press Release
Today a federal grand jury in Milwaukee returned a two count indictment charging Paul Carter, aka Pimpin’ Paul, with sex trafficking offenses dating from 2012 through 2013, the Justice Department announced.
Carter, 44, of Milwaukee, is charged with one count of sex trafficking of an adult female by force, threats of force, fraud and coercion. Carter is also charged with one count of sex trafficking of a minor. Carter allegedly used force, threats of force, fraud and coercion to cause the victim to engage in a commercial sex act while knowing that the victim was under the age of 18. If convicted, Carter faces a statutory maximum sentence of life in prison on each charge.
The case was investigated by the Human Trafficking Task Force for the Eastern District of Wisconsin, which includes law enforcement officers from the FBI, Homeland Security Investigations, Wisconsin Division of Criminal Investigation and the Milwaukee Police Department. The case is being prosecuted by Assistant U.S. Attorney Karine Moreno-Taxman of the Eastern District of Wisconsin and Trial Attorney Daniel H. Weiss of the Civil Rights Division's Human Trafficking Prosecution Unit.
An indictment is merely an accusation, and the defendant is presumed innocent until proven guilty.
McLaughlin Man and Wakpala Man Sentenced for Sexual Contact with A Person Incapable of ConsentingRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man and a Wakpala, South Dakota, man were convicted of Sexual Contact with a Person Incapable of Consenting and were sentenced on May 19, 2014, by U.S. District Judge Charles B. Kornmann.
Joseph Mark Eagle of McLaughin, age 28, was sentenced to 12 months and a day of custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Justin Howard of Wakpala, age 31, was sentenced to 18 months of custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Eagle and Howard were indicted by a federal grand jury on August 22, 2012. They both pled guilty to a Superseding Information on December 23, 2013. The convictions stem from an assault which occurred on August 2, 2008, when both Eagle and Howard sexually assaulted an adult female who was incapable of appraising the nature of the sexual contact and was physically incapable of declining participation in the sexual contact.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Standing Rock Law Enforcement Agency. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Howard and Eagle were immediately turned over to the custody of the U.S. Marshals Service to begin serving their sentences.
Marshall County Man Convicted of Sexual Exploitation of MinorsRead the Press Release
Peoria, Ill. — Following a two-day bench trial before Chief U.S. District Judge James E. Shadid, Brian A. Miller, 36, of Varna, Ill., was convicted today of 22 counts of sexual exploitation of a minor. Judge Shadid scheduled sentencing for Miller on Sept. 16, 2014
Since Miller was arrested and charged in a criminal complaint, filed Aug. 29, 2013, he has remained detained in the custody of the U.S. Marshals Service.
During the two days of trial, the government presented evident to demonstrate that from at least July 2011 through May 2012, on at least 22 occasions, Miller used a cell phone to take images of minors from a hole in the wall of his home while the minors were using a shower.
At sentencing, for each count of sexual exploitation of a minor in the production of child pornography, the statutory penalty is not less than 15 years in prison and up to 30 years in prison. The offense also carries a term of supervised release of up to life following any term of imprisonment.
The charges are the result of an investigation by the U.S. Secret Service; the Marshall County Sheriff’s Office, the Peoria County Sheriff’s Office and the Bloomington Police Department. Assistant U.S. Attorney Timothy A. Bass is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.