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11 July 2014
Columbia Felon Sentenced to Three Years for Carrying Pistols While Out on BondRead the Press Release
Contact Person: Jim May (803) 929-3000
Columbia, South Carolina -----United States Attorney Bill Nettles stated that Raheem Fitzgerald Bethel, age 27, of Columbia, was sentenced today in federal court in Columbia, South Carolina, to a term of imprisonment of 35 months in federal prison. On January 15, 2013, Bethel, a previously convicted felon who was on bond for attempted murder, was arrested by the Columbia Police Department with two pistols, one of which was stolen. After being released again on bond, Bethel was arrested on September 14, 2013 in possession of another stolen pistol. A federal Grand Jury subsequently indicted Bethel on February 5, 2014. Senior United States District Judge Margaret B. Seymour sentenced Bethel to 35 months in prison.
This prosecution is part of the United States Attorney’s ongoing efforts with the Columbia Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives to identify and prosecute violent felons who possess firearms.
The case was prosecuted by Assistant United States Attorney Jay N. Richardson.Carrick Woman with Six Felony Drug Convictions to Spend 15 Years in Prison for Illegally Possessing Loaded PistolRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, was sentenced in federal court on Thursday, July 10, 2014, to 180 months imprisonment followed by five years supervised release on her conviction of violating federal firearms and narcotics laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill imposed the sentence on Tamika Somerville, 34.
According to information presented to the court, on or about May 12, 2012, Somerville, being a convicted felon, illegally possessed a Glock, Model 27, .40 caliber pistol loaded with twelve rounds of ammunition. Attached to the pistol was a laser sight. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year to possess a firearm. Somerville is a convicted felon as a result of six previous felony drug trafficking convictions from the Court of Common Pleas of Allegheny County. Somerville was also found in possession of 150 stamp bags of heroin which she possessed with the intent to distribute.
Assistant United States Attorney Charles A. Eberle prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pittsburgh Bureau of Police and the Drug Enforcement Administration for the investigation leading to the successful prosecution of Somerville. This case was prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
Caribbean-Based Investment Advisors and Attorney Plead Guilty to Using Offshore Accounts to Launder and Conceal FundsRead the Press Release
Joshua Vandyk, a U.S. citizen, and Eric St-Cyr and Patrick Poulin, Canadian citizens, have each pleaded guilty to conspiring to launder monetary instruments, the Justice Department and Internal Revenue Service (IRS) announced today.
Patrick Poulin, 41, pleaded guilty today, Vandyk, 34, pleaded guilty on June 12, and St-Cyr, 50, pleaded guilty on June 27. The three defendants were indicted by a grand jury in the U.S. District Court for the Eastern District of Virginia on March 6, and the indictment was unsealed on March 12 after the defendants were arrested in Miami.
According to the plea agreements and statements of facts, Vandyk, St-Cyr and Poulin conspired to conceal and disguise the nature, location, source, ownership and control of property believed to be the proceeds of bank fraud, specifically $2 million. Vandyk, St-Cyr and Poulin assisted undercover law enforcement agents posing as U.S. clients in laundering purported criminal proceeds through an offshore structure designed to conceal the true identity of the proceeds’ owners. Vandyk and St-Cyr invested the laundered funds on the clients’ behalf and represented that the funds would not be reported to the U.S. government.
“This investigation highlights the Justice Department’s commitment to worldwide enforcement of federal laws designed to ensure that U.S. taxpayers fully disclose and report all foreign income and assets,” said Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department's Tax Division. “ The Tax Division is committed to using every tool available to hold these wrongdoers accountable .”
“These three defendants played a shell game by creating offshore entities designed to help their U.S. clients evade taxes and other legal requirements, and they used that same shell game to launder purported criminal proceeds,” said U.S. Attorney Dana J. Boente for the Eastern District of Virginia. “We are committed to working with our law enforcement partners to penetrate and combat these schemes wherever they occur.”
“Individuals who assist others in laundering criminal proceeds will be held accountable for their own criminal actions,” said IRS-Criminal Investigation Chief Richard Weber. “The defendants in this investigation had a blatant disrespect for the laws and laundered purported criminal proceeds through offshore structures to conceal the identity of the proceeds’ owners. IRS Criminal Investigation has ramped up its presence in the international arena and will aggressively pursue those who commit financial crimes.”
According to court documents, Vandyk and St-Cyr lived in the Cayman Islands and worked for an investment firm based in the Cayman Islands. St-Cyr was the founder and head of the investment firm, whose clientele included numerous U.S. citizens. Poulin, an attorney at a law firm based in Turks and Caicos, worked and resided in Canada as well as the Turks and Caicos. His clientele also included numerous U.S. citizens. Vandyk, St-Cyr and Poulin solicited U.S. citizens to use their services to hide assets from the U.S. government, including the IRS. Vandyk and St-Cyr directed the undercover agents posing as U.S. clients to create an offshore corporation with the assistance of Poulin and others because they and the investment firm did not want to appear to deal with U.S. clients. Vandyk, St-Cyr and Poulin used the offshore entity to move money into the Cayman Islands and used Poulin as a nominee intermediary for the transactions.
According to court documents, Poulin established an offshore corporation called Zero Exposure Inc. for the undercover agents posing as U.S. clients and served as a nominal board member in lieu of the clients. Poulin transferred approximately $200,000 that Poulin, St-Cyr and Vandyk believed to be the proceeds of bank fraud from the offshore corporation to the Cayman Islands, where Vandyk and St-Cyr invested those funds outside of the United States in the name of the offshore corporation. The investment firm represented that it would neither disclose the investments or any investment gains to the U.S. government, nor would it provide monthly statements or other investment statements to the clients. Clients were able to monitor their investments online through the use of anonymous, numeric passcodes. Upon request from the U.S. client, Vandyk and St-Cyr liquidated investments and transfer money, through Poulin, back to the United States. According to Vandyk and St-Cyr, the investment firm would charge clients higher fees to launder criminal proceeds than to assist them in tax evasion.
The case was investigated by special agents of the IRS-Criminal Investigation. Trial Attorneys Todd Ellinwood and Caryn Finley of the department’s Tax Division and Assistant U.S. Attorney Kosta Stojilkovic of the U.S. Attorney’s Office for the Eastern District of Virginia are prosecuting the case. The Justice Department and the IRS would like to thank the Royal Canadian Mounted Police, the Royal Cayman Islands Police Service and the Royal Turks and Caicos Islands Police Force for their assistance in this investigation.
Additional information about the Tax Division and its enforcement efforts may be found at the division website .
Caribbean-Based Investment Advisors and Attorney Plead Guilty to Using Offshore Accounts to Launder and Conceal FundsRead the Press Release
WASHINGTON - Joshua Vandyk, a U.S. citizen, and Eric St-Cyr and Patrick Poulin, Canadian citizens, have each pleaded guilty to conspiring to launder monetary instruments, the Justice Department and Internal Revenue Service (IRS) announced today.
Patrick Poulin, 41, pleaded guilty today, Vandyk, 34, pleaded guilty on June 12, and St-Cyr, 50, pleaded guilty on June 27. The three defendants were indicted by a grand jury in the U.S. District Court for the Eastern District of Virginia on March 6, and the indictment was unsealed on March 12 after the defendants were arrested in Miami.
According to the plea agreements and statements of facts, Vandyk, St-Cyr and Poulin conspired to conceal and disguise the nature, location, source, ownership and control of property believed to be the proceeds of bank fraud, specifically $2 million. Vandyk, St-Cyr and Poulin assisted undercover law enforcement agents posing as U.S. clients in laundering purported criminal proceeds through an offshore structure designed to conceal the true identity of the proceeds’ owners. Vandyk and St-Cyr invested the laundered funds on the clients’ behalf and represented that the funds would not be reported to the U.S. government.
“This investigation highlights the Justice Department’s commitment to worldwide enforcement of federal laws designed to ensure that U.S. taxpayers fully disclose and report all foreign income and assets,” said Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department's Tax Division. “The Tax Division is committed to using every tool available to hold these wrongdoers accountable.”
“These three defendants played a shell game by creating offshore entities designed to help their U.S. clients evade taxes and other legal requirements, and they used that same shell game to launder purported criminal proceeds,” said U.S. Attorney Dana J. Boente for the Eastern District of Virginia. “We are committed to working with our law enforcement partners to penetrate and combat these schemes wherever they occur.”
“Individuals who assist others in laundering criminal proceeds will be held accountable for their own criminal actions,” said IRS-Criminal Investigation Chief Richard Weber. “The defendants in this investigation had a blatant disrespect for the laws and laundered purported criminal proceeds through offshore structures to conceal the identity of the proceeds’ owners. IRS Criminal Investigation has ramped up its presence in the international arena and will aggressively pursue those who commit financial crimes.”
According to court documents, Vandyk and St-Cyr lived in the Cayman Islands and worked for an investment firm based in the Cayman Islands. St-Cyr was the founder and head of the investment firm, whose clientele included numerous U.S. citizens. Poulin, an attorney at a law firm based in Turks and Caicos, worked and resided in Canada as well as the Turks and Caicos. His clientele also included numerous U.S. citizens. Vandyk, St-Cyr and Poulin solicited U.S. citizens to use their services to hide assets from the U.S. government, including the IRS. Vandyk and St-Cyr directed the undercover agents posing as U.S. clients to create an offshore corporation with the assistance of Poulin and others because they and the investment firm did not want to appear to deal with U.S. clients. Vandyk, St-Cyr and Poulin used the offshore entity to move money into the Cayman Islands and used Poulin as a nominee intermediary for the transactions.
According to court documents, Poulin established an offshore corporation called Zero Exposure Inc. for the undercover agents posing as U.S. clients and served as a nominal board member in lieu of the clients. Poulin transferred approximately $200,000 that Poulin, St-Cyr and Vandyk believed to be the proceeds of bank fraud from the offshore corporation to the Cayman Islands, where Vandyk and St-Cyr invested those funds outside of the United States in the name of the offshore corporation. The investment firm represented that it would neither disclose the investments or any investment gains to the U.S. government, nor would it provide monthly statements or other investment statements to the clients. Clients were able to monitor their investments online through the use of anonymous, numeric passcodes. Upon request from the U.S. client, Vandyk and St-Cyr liquidated investments and transfer money, through Poulin, back to the United States. According to Vandyk and St-Cyr, the investment firm would charge clients higher fees to launder criminal proceeds than to assist them in tax evasion.
The case was investigated by special agents of the IRS-Criminal Investigation. Trial Attorneys Todd Ellinwood and Caryn Finley of the department’s Tax Division and Assistant U.S. Attorney Kosta Stojilkovic of the U.S. Attorney’s Office for the Eastern District of Virginia are prosecuting the case. The Justice Department and the IRS would like to thank the Royal Canadian Mounted Police, the Royal Cayman Islands Police Service and the Royal Turks and Caicos Islands Police Force for their assistance in this investigation.
Additional information about the Tax Division and its enforcement efforts may be found at the division website.Tweet
C.p. Buckner Steel Erection, Inc. Enters into $825,000 Settlement of Claims Related to Employment of Illegal AliensRead the Press Release
ALBANY, NEW YORK –C.P. Buckner Steel Erection Inc., (“Buckner”) of Graham, North Carolina has agreed to pay $825,000 in civil forfeiture over two years as part of a settlement in an investigation of its employment of illegal aliens announced United States Attorney Richard S. Hartunian and U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), Assistant Special Agent in Charge, Nicholas DiNicola. As part of the settlement agreement, if Buckner fully complies with the terms of the settlement agreement, the United States Attorney for the Northern District of New York agrees not to pursue corporate criminal charges against Buckner for its employment of illegal alien workers before March 31, 2009.
The government’s investigation documented that Buckner employed workers at projects who were not eligible to work. The investigation began in January 2009 following a tip that Buckner had transported illegal aliens from North Carolina to a Beech-Nut project in Montgomery County, New York. Regarding that project, on January 22, 2009 and February 18, 2009, HSI arrested a total of nine Buckner employees, including two supervisors, because they were unlawfully present in the United States. Six of those employees were released, and Buckner continued to employ them. In addition, after the first arrests, the employees moved from a hotel located within one mile of the project to one thirty miles away. This move was approved by Buckner.
On February 28, 2009, when auditors from the New York State Department of Labor (“DOL”) and the New York State Bureau of Criminal Investigation (“BCI”) appeared unannounced at the project to interview employees, all but one employee, who was also not authorized to work, fled. Those employees, as approved by Buckner, went to North Carolina and continued working for Buckner there despite the fact that they were not authorized to work. Until April 2009, Buckner failed to make further inquiry regarding the work authorization status of those employees who had fled and other employees in its workforce who Buckner had sponsored for green cards consciously avoiding the inferences that could be drawn from the combination of the Buckner’s sponsorship of the employees in the green card program, the crew’s action in the Northern District of New York, and HSI’s arrest of Buckner employees in 2008 and 2009. In addition, Buckner had received repeated notices over multiple years from the SSA of hundreds of irregularities in the social security numbers used for employment purposes by its workers.
Under the settlement agreement, which remains in effect until July 10, 2016, Buckner agrees to cooperate fully and actively with the U.S. Attorney’s Office and the government entities involved in the investigation. Buckner is also required to continue remedial hiring actions implemented after it learned about the investigation on March 31, 2009. Those actions include using DHS’s “E-Verify” screening program for all new hires, verifying the social security numbers of all Buckner employees, and maintaining an employee hotline to receive reports of any suspected violation of law at the company.
The investigation was conducted by HSI. The case is being handled by Assistant United States Attorneys Edward Grogan and Gwendolyn Carroll.
Bureau of Justice Statistics Releases Tribal Crime Data Collection Activities, 2014<br />Read the Press Release
This fourth annual report to Congress describes efforts to collect and improve data on crime and justice in Indian country, as required by the Tribal Law and Order Act of 2010. The report details the number of tribal law enforcement agencies reporting crime data to the FBI’s Uniform Crime Reporting program. It describes BJS’s first National Survey of Tribal Court Systems which will collect data on tribal courts in the lower 48 states and Alaska covering 566 tribes. The survey will also cover the tribal Courts of Federal Regulations that handle some offenses and resolve disputes among tribal members. It also summarizes tribal eligibility for Edward Byrne Memorial Justice Assistance Grant awards and the total funds awarded to tribes.
http://ojp.gov/newsroom/pressreleases/2014/ojppr071014.pdf
Brooklyn Man Pleads Guilty in Heroin Trafficking Scheme Targeting Mid-Atlantic StatesRead the Press Release
PITTSBURGH – Luis Colon, a resident of Brooklyn, New York, was convicted of conspiring to distribute 100 grams or more of heroin, United States Attorney David J. Hickton announced today.
Colon, 30, pled guilty before United States District Judge David S. Cercone. Judge Cercone scheduled sentencing to occur on Nov. 13, 2014, at 10:30 a.m.
In support of the guilty plea, the Court was informed that Colon would make occasional heroin trafficking trips to Pittsburgh as well as to other locations in the mid-Atlantic region. He was the source of supply for hundreds of grams of heroin for drug traffickers in the Pittsburgh area and elsewhere. Colon was arrested in Richmond, Va., in October 2013, following his indictment in the Western District of Pennsylvania. At the time of his arrest in Richmond, Colon admitted that he had traveled there to collect $5,000.
The law provides for a maximum total sentence of at least five and up to 40 years in prison, a fine of up to $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation and the Pennsylvania Attorney General’s Office led the multi-agency investigation of this case that also included the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Moon Township Police Department, the North Fayette Police Department, the Pittsburgh Police Department, the Allegheny County Sheriff’s Office, the Pennsylvania State Police, the McKees Rocks Police Department, the Cranberry Township Police Department, the McKeesport Police Department, and the Wilkinsburg Police Department.
Bridgeport Man Sentenced to 70 Months in Federal Prison for Illegally Possessing Loaded FirearmRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FEDERICO CANNON, also known as “Rico,” 31, of Bridgeport, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 70 months of imprisonment, followed by three years of supervised release. On May 22, 2013, a jury found CANNON guilty of one count of possession of a firearm and ammunition by a previously convicted felon.
According to the trial evidence, at approximately 1:15 a.m. on February 25, 2012, Bridgeport Police stopped a vehicle in which CANNON was a passenger on Caroline Street in Bridgeport. CANNON initially exited the vehicle and attempted to walk away, but police ordered him back into the car. After directing the driver out of the vehicle, a Bridgeport Police detective observed a semi-automatic pistol on the floor of the rear passenger area in the vicinity of where CANNON was sitting. The firearm was a Smith & Wesson 9mm model 469, loaded with 10 live hollow-point cartridges and two full-metal jacket cartridges.
Prior to February 25, 2012, CANNON had sustained felony drug, firearms and burglary convictions, including a 2006 federal conviction for possession of a firearm and ammunition by a previously convicted felon.
The evidence at trial in the previous federal case revealed that in the early morning hours of October 21, 2004, CANNON was in a car with three other individuals driving northbound on Interstate 95 between Norwalk and Bridgeport when they initiated a confrontation with another car occupied by two men. The confrontation culminated at the bottom of the Exit 25 ramp in Bridgeport when approximately seven or eight shots were fired at the victims’ vehicle. A subsequent search of the vehicle in which CANNON was a passenger revealed a semi-automatic pistol at CANNON’s feet in the right rear passenger seat of the vehicle. The jury found CANNON guilty and, on April 12, 2006, he was sentenced to 42 months of imprisonment.
This matter was investigated by the Bridgeport Police Department and the Federal Bureau of Investigation, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
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(203) 821-3722 [email protected]Boston Undercover Operation Results in SEC and Criminal Securities Fraud ChargesRead the Press Release
BOSTON – The Securities and Exchange Commission (SEC) filed suit today charging five individuals who were previously criminally charged and arrested for attempting to manipulate the securities of Massachusetts-based company, Amogear Inc.
The criminal cases charged the following individuals with conspiracy to commit securities fraud: Andrew J. Affa, 30, of Huntington Station, N.Y.; Michael A. Affa, 34, of Toms River, N.J.; Mitchell H. Brown, 48, of Long Branch, N.J.; Christopher R. Putnam, 37, of Charleston, S.C.; and Christopher G. Nix, 34, of Charleston, S.C. Andrew Affa, Michael Affa and Brown were also charged with conspiracy to commit wire fraud. The SEC suit, likewise, charges all five individuals with securities fraud.
Andrew Affa, Michael Affa, and Brown are scheduled to appear in federal court in Boston on July 15 and Putnam and Nix are scheduled to appear on July 31.
It is alleged that in January and February 2014, the defendants attempted manipulation of Amogear’s stock was caught in real-time by a federal undercover operation. The SEC suspended trading in the securities of Amogear on Feb. 10, 2014, as the attempted manipulation of its stock was underway. According to the criminal and SEC charges, prior to the suspension of trading in the stock, the defendants planned and implemented a scheme to create a false appearance of an active market in the stock, followed by a false media campaign designed to increase the price of the stock, knowing that Amogear was a shell company without any real operations. The defendants allegedly planned to sell the stock into the market at artificially inflated prices from which they would profit. What the parties did not know was that Amogear was controlled by the FBI and used by the FBI as a vehicle to obtain evidence of their attempt to manipulate the market.
The charges follow a multi-year investigation focusing on preventing fraud in the microcap stock markets. Microcap companies are small publicly traded companies whose stock often trades at pennies per share. Fraud in the microcap stock markets is of increasing concern to regulators as such markets have proven to be fertile grounds for fraud and abuse. This is, in part, because accurate information about microcap stocks may be difficult for the average investor to find, since many microcap companies do not file financial reports with the SEC.
These latest charges follow a series of cases filed by the SEC and the U.S. Attorney since December 2011 in which 22 individuals have been criminally charged and 18 convicted, for using kickbacks and other schemes to trigger investments in various thinly-traded stocks, and the SEC suspended trading in seven companies.
“As is clear from the combined efforts of the U.S. Attorney’s Office, the FBI, and the SEC, market manipulation will not be tolerated,” said Carmen M. Ortiz, U.S. Attorney for the District of Massachusetts. “The prosecution of corporate and securities fraud is a top priority of the Department of Justice and a top priority for this Office. As is demonstrated by the recent charges, we will continue to develop new techniques to detect and prosecute those engaged in market abuse.”
“Fund representatives, CEOs, traders, fund managers, equities analysts, lawyers and publicists should take note that Boston FBI agents purposefully designed multiple undercover operations aimed directly at rooting out market manipulation and insider trading. As the scope and design of our undercover operations become well-known, no one should think that future undercover operations will be the same as prior ones because in this instance the FBI took control of a publicly traded company making it nearly impossible to discover,” said Vince Lisi, Special Agent in Charge of the FBI’s Boston Division.
Andrew Ceresney, Director of the SEC’s Enforcement Division, said, “The SEC will hold accountable parties who disrupt the fair and efficient functioning of the markets. We are committed to working with our law enforcement partners in Massachusetts and around the country to stop abuses in the microcap sector and hold the perpetrators responsible.”
“These defendants brazenly attempted to manipulate Amogear’s stock,” said Paul G. Levenson, Director of the SEC’s Boston Regional Office. “It didn’t occur to them that the FBI and SEC were a step ahead of them.”
The statute for the criminal charges provides a maximum sentence of five years in prison and a $250,000 fine. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The SEC is seeking permanent injunctions against further violations of the securities laws, disgorgement of ill-gotten gains plus prejudgment interest, civil monetary penalties, and bars from being involved in offerings of penny stocks.
U.S. Attorney Ortiz, FBI SAC Lisi, and SEC Boston Regional Office Director Levenson made the announcement today. The criminal case is being prosecuted by Assistant U.S. Attorney Vassili Thomadakis of Ortiz’s Economic Crimes Unit, and SEC attorneys Eric Forni and Andrew Palid, who were appointed Special Assistant U.S. Attorneys. The SEC investigation was led by Michele T. Perillo and the SEC litigation will be handled by Martin F. Healey.
Bank Robbers Sentenced to Lengthy Prison TermsRead the Press Release
United States Attorney James Santelle announced that four bank robbers were recently sentenced in federal court in Green Bay for charges stemming from a bank robbery on December 27, 2013, of the BMO Harris Bank, located in Black Creek, WI.
Chief United States District Judge William C. Griesbach sentenced Samuel H. McGee, (age: 25) of Waukegan, Illinois and Clemmie L. Carter, (age: 23) of Appleton, Wisconsin to 11.5 year terms of prison followed by 5 years of supervised release. Lucky Charleston, (age: 23) of Fayetteville, Georgia was sentenced to 9 years in prison followed by 5 years of supervised release and Yolanda Barnes, (age: 19) of Chicago, Illinois received a 4 year prison term followed by 5 years of supervised release.
According to documents released in court McGee, Carter, and Charleston entered the bank shortly after it opened on December 27, 2013. All three individuals wore a mask and carried a loaded firearm. McGee, Carter and Charleston pointed their firearms at the bank employees and ordered them to the ground. McGee later pointed the assault style rifle he was carrying at a customer who entered the bank. Carter and Charleston stole money from several bank drawers. They fled the bank in a car driven by Barnes. Several hours after the bank robbery, Town of Menasha Police officers, working in conjunction with investigators from the Outagamie County Sheriff Department, saw a vehicle matching the description of the getaway car. The occupants of that vehicle, identified as Carter, McGee, and Barnes were arrested. Charleston was later found at a motel room where officers recovered bank funds, the firearms used during the bank robbery, and the clothing worn.
This case was investigated by the Outagamie County Sheriff Department, Town of Menasha Police Department, the Federal Bureau of Investigation and the Outagamie County District Attorneys’ Office. The case was prosecuted by Assistant United States Attorney William Roach.
Baltimore Convicted Felon Exiled to over 9 Years in Prison for Possession of A Stolen GunRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Leverne Alexander Patterson, age 62, of Baltimore, Maryland, today to 115 months in prison, followed by three years of supervised release, for possession of a stolen firearm.The sentence was 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; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to Patterson’s plea agreement, on June 4, 2013, Baltimore Police officers executed a search warrant at a residence in the 2600 block of East Preston Street in Baltimore. Upon entering the home, officers found Patterson and a female in the upstairs bedroom and brought them to the first floor. Officers asked Patterson if he had any drugs, guns, or large sums of money in the house. Patterson advised officers that he had a gun under the bed in the upstairs front bedroom. Officers recovered a loaded .22 caliber handgun from that location. Patterson was arrested after police learned that he was on parole from a previous felony conviction and prohibited from possessing a gun. Patterson told police that he had purchased the gun from an individual on the street for $200. Investigation revealed that the gun had been stolen in Howard County, Maryland in 2003.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Christopher Flagg, a cross-designated Baltimore City Assistant State’s Attorney assigned as part of the Baltimore initiative to combat violent crime, who prosecuted the case.
Attorney General Eric Holder to Deliver Keynote Address at Justice Department and Howard University Celebration of the 50th Anniversary of Civil Rights Act of 1964<br />Read the Press Release
Attorney General Eric Holder will deliver the keynote address at the Department of Justice’s 50th anniversary celebration of the Civil Rights Act of 1964. Secretary of Labor Thomas Perez, Secretary of Education Arne Duncan, Congresswoman Eleanor Holmes Norton, Deputy Attorney General James Cole, Associate Attorney General Tony West, Ambassador Andrew Young and Howard University Interim President Dr. Wayne A.I. Frederick will also deliver remarks at the event co-hosted by Howard University, on TUESDAY, JULY 15, 2014, at 10:00 a.m. EDT, to honor the civil rights movement and celebrate the groundbreaking act.
Journalist Charlayne Hunter-Gault will lead a panel discussion during the program on the impact of the Civil Rights Act of 1964 with Julian Bond, Howard University School of Law Associate Dean for Academic Affairs Lisa A. Crooms-Robinson, Joan Trumpauer Mulholland and Helen Zia.
The event will be live streamed at http://tinyurl.com/och84d4.
WHO: Attorney General Eric Holder, Secretary of Labor Thomas Perez, Secretary of Education Arne Duncan, Congresswoman Eleanor Holmes Norton, Deputy Attorney General James Cole, Associate Attorney General Tony West, Ambassador Andrew Young, Howard University Interim President Dr. Wayne A.I. Frederick, Howard University School of Law Associate Dean for Academic Affairs Lisa A. Crooms-Robinson, Julian Bond, Charlayne Hunter-Gault, Joan Trumpauer Mulholland, Helen Zia
WHAT: “The 50th Anniversary of the Civil Rights Act of 1964: Preserving Progress, Charting the Future”
WHEN: Tuesday, July 15, 2014
10:00 a.m. EDT
WHERE: Cramton Auditorium
Howard University
2455 6th St., N.W.
Washington, D.C.
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (such as driver’s license) as well as valid media credentials. Media interested in attending must RSVP to Erica Lacy at [email protected] no later than 5:00 p.m. EDT, on Monday, July 14, 2014. Media may begin arriving at 8:30 a.m. EDT. All cameras must be pre-set and radios must be in place by 9:30 a.m. EDT. Pen and pad reporters must be in place by 9:50 a.m. EDT.Press inquiries regarding logistics should be directed to Erica Lacy at 202-514-2007 or at [email protected]. Press inquiries regarding interviews with Howard University staff should be directed to Rachel Mann at 202-308-8903 or at [email protected].
Allegheny County Man Pleads Guilty to Violating Federal Gun and Drug LawsRead the Press Release
PITTSBURGH – Dustin Petry, an Allegheny County resident, was convicted of conspiring to distribute heroin and possessing a firearm in furtherance of a drug trafficking crime, United States Attorney David J. Hickton announced today.
Petry, 27, pled guilty before United States District Judge David S. Cercone. Judge Cercone scheduled sentencing to occur on Nov. 13, 2014, at 11 a.m.
In support of the guilty plea, the Court was informed that Petry would receive heroin from his source of supply, he would distribute it to his customers, and he would then pay his source of supply back for the heroin and wait to be supplied with more. Between July 2013 and October 2013, Petry possessed a pistol in furtherance of the heroin trafficking conspiracy. Petry possessed the pistol to, among other things, protect his person, his proceeds, and his heroin from robbery.
The law provides for a maximum total sentence of at least five years and up to life in prison, a fine of up to $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation and the Pennsylvania Attorney General’s Office led the multi-agency investigation of this case that also included the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Moon Township Police Department, the North Fayette Police Department, the Pittsburgh Police Department, the Allegheny County Sheriff’s Office, the Pennsylvania State Police, the McKees Rocks Police Department, the Cranberry Township Police Department, the McKeesport Police Department, and the Wilkinsburg Police Department.
67 Year-Old Church Secretary Sentenced to Federal Prison for Stealing from ChurchRead the Press Release
Contact Person: Jim May (803) 929-3000
Columbia, South Carolina -----United States Attorney Bill Nettles stated today that Sandra A Stroupe, age 67, of Clover, South Carolina was sentenced today in federal court in Columbia, South Carolina, to a term of imprisonment of 24 months in federal prison. Stroupe was the secretary/bookkeeper at the Clover ARP Church for over 38 years. Beginning in at least 2006 and continuing until April of 2013 Stroupe embezzled over $600,000 of church money.
Senior United States District Judge Margaret B. Seymour sentenced Stroupe and ordered that Stroupe pay restitution to her victim.
The case was investigated by agent Devon Mahoney of the FBI. Assistant United States Attorney James (Jim) Hunter May of the Columbia Office prosecuted the case.
10 July 2014
Wilkes-Barre Man Sentenced to Prison on Drug ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Wilkes-Barre man was sentenced yesterday, in federal court in Wilkes-Barre, by United States District Judge A. Richard Caputo, to serve 41 months in prison on a charge of conspiracy to distribute heroin.
According to United States Attorney Peter Smith, Dwayne Webb, age 33, a resident of Wilkes-Barre pleaded guilty to the charge in March of this year.
Webb was charged after an investigation conducted by the United States Drug Enforcement Administration, the Pennsylvania State Police and the Wilkes-Barre Police Department. An Indictment was filed against Webb and twelve other persons on June 4, 2014. Webb was classified as a career offender under the United States Sentencing Commission advisory sentencing guidelines.
The case was prosecuted by Assistant United States Attorney William S. Houser.
Western Slope Man Sentenced to 46 Months in Federal Prison for Defrauding the IRS and for Possession of A Firearm by A FelonRead the Press Release
DENVER –Michael L. Roy, age 50, of Clifton, Colorado, was sentenced yesterday by U.S. District Court Judge Raymond P. Moore to serve 46 months in federal prison for conspiracy to defraud the United States and being a felon in possession of a firearm, United States Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Roy was ordered to spend 3 years on supervised release following the service of his term of imprisonment. Judge Moore also ordered him to pay $65,263 in restitution to the IRS.
Roy had waived his right to be indicted by a federal grand jury and was charged by an Information on January 28, 2014. He pled guilty on March 17, 2014.
According to the facts contained in the Information as well as the stipulated facts contained in the plea agreement, in July 2013, the United States Postal Service intercepted eleven envelopes containing U.S. Treasury checks (IRS refund checks) and addressed to the home address of Michael and Kandiann Roy in Clifton, CO. Each of the envelopes were addressed to a different individual, and each check had a processing date of July 2013. Postal employees had also noticed Roy received letters from individuals within the Arizona State prison system. The mail carrier found a typed list with eleven names taped inside Roy’s mail box. The list appeared to serve as notification that the owner of the box would be receiving mail for these individuals.
IRS records showed that the list included eleven names for individuals who purported to file IRS Forms 1040EZ , U.S. Individual Income Tax Return, using Roy’s address. A total of 30 IRS Form 1040EZ returns, submitted for the 2012 tax year, were filed using either Roy’s current or former home address. All of the returns requested tax refunds. Twenty-six of the returns each list an identical income of $37,429, withholdings of $12,976 and refund amounts of $9,260 and were filed by mail; the refunds of eight of those returns were deposited into Roy’s bank account. The loss to the government to date is calculated at $65,263. Had all of the tax refunds requested by Roy been paid by the IRS, the loss would have amounted to $265,915.
Twenty of the returns filed using one of the Roy's addresses purported to be from taxpayers who are incarcerated prisoners. Eighteen of these prisoners are incarcerated in the Arizona State prison, located in Eyman, Arizona. Roy, previously known as Michael Demes, was convicted in Arizona of the felonies of robbery and aggravated assault and incarcerated under that name in the Arizona prison system beginning in 1999. He was sentenced to a seven-year prison term.
On September 19, 2013, Special Agents with IRS Criminal Investigation executed a search warrant on Roy’s home in Clifton, Colorado. During the search warrant, IRS Special Agents found documentary evidence that Roy had filed the bogus tax returns. They also found Moneygram receipts and letters to and from an inmate in the Arizona State prison, which included details of the conspiracy to file false income tax returns using the identity of other inmates. In addition, agents found a firearm, a Hi-Point .380 caliber handgun.
This case was investigated by IRS-Criminal Investigation, and the United States Postal Inspection Service. The case was prosecuted by Assistant U.S. Attorney Michelle M. Heldmyer.
Watertown Area Hospital Settles Health Care LawsuitRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced today that his office has settled a civil action under the False Claims Act, against the Carthage Area Hospital. This case involves allegations that the Carthage Area Hospital (“Carthage”) doublebilled Medicare for operating room services and ambulatory services from September 1, 2006 through June 30, 2010. Carthage submitted approximately 1900 claims for payment to Medicare which improperly contained both revenue code 360 (operating room services) and revenue code 490 (ambulatory surgery).
The parties have agreed to a civil resolution of this case, in which Carthage will pay the United States $750,000.00. While the United States was entitled to seek double or treble damages plus fines and penalties under the False Claims Act, this settlement reflects single damages (the approximate amount of the excess billing), in light of the unique circumstances of this case and the full cooperation of Carthage throughout this investigation.
Richard S. Hartunian, United States Attorney for the Northern District of New York, stated that “Health care fraud is a priority of the Department of Justice and this office. This settlement reflects an appropriate resolution of this case in light of the circumstances. We wish to recognize the full cooperation of Carthage throughout this investigation.”
This case was investigated by the U.S. Department of Health and Human Services, Office of the Inspector General (“HHS OIG”). The excess billing was confirmed by the HHS OIG investigation, as well as a self-audit conducted by Carthage.
This matter is assigned to Assistant U.S. Attorney Charles E. Roberts. News inquiries should be directed to Executive Assistant United States Attorney John Duncan, tele. (315) 448- 0672.
U.S. Branch of Canadian Company to Pay $2.5 Million Penalty for Shreveport, La., Wastewater PlantRead the Press Release
Houston-based CCS (USA) Inc. and several of its operating subsidiaries will pay a $2.5 million civil penalty relating to operations at its Shreveport, Louisiana, industrial wastewater treatment plant, the Department of Justice, U.S. Environmental Protection Agency (EPA) and the state of Louisiana announced today. The settlement will resolve violations of the Clean Water Act, the Clean Air Act and the hazardous waste law known as RCRA.
CCS acquired the plant in 2006 through its purchase of two closely held companies owned by John Emerson Tuma. Tuma is now serving a five-year prison sentence for illegally discharging untreated and improperly treated wastewater from the plant into the Red River and Shreveport Publicly Owned Treatment Works (POTW). Inspections by EPA and the Louisiana Department of Environmental Quality following the sale led to the discovery of these violations and others, including unpermitted storage and improper handling of hazardous wastes and sludge, unpermitted stormwater discharges and noncompliance with Clean Air Act requirements for benzene-containing wastes.
After discovering these violations, CCS ceased wastewater treatment operations at the facility. Under EPA supervision, CCS removed the hazardous wastes illegally stored there.
The $2.5 million civil penalty will be split evenly between the United States and state of Louisiana.
The stipulation of settlement, filed in the U.S. District Court for the Western District of Louisiana, is subject to a 45-day public comment period and approval by the federal court.
U.S. Attorney’s Office Concludes Investigation into the Death of Miriam CareyNo Charges to Be Filed in Shooting Near U.S. CapitolRead the Press Release
WASHINGTON – The U.S. Attorney’s Office for the District of Columbia announced today that there is insufficient evidence to pursue federal criminal civil rights or local charges against officers from the U.S. Secret Service and U.S. Capitol Police who were involved in the fatal shooting of Miriam Carey on Oct. 3, 2013, just blocks from the U.S. Capitol.
Officials from the U.S. Attorney’s Office for the District of Columbia notified Ms. Carey’s family and their representatives of this decision today.
The U.S. Attorney’s Office for the District of Columbia and the Metropolitan Police Department conducted a comprehensive review of the incident, which included interviews of more than 60 witnesses and careful review of all crime scene evidence, ballistics reports, scene and traffic video footage, photographs, the autopsy report, and other evidence. After a thorough review of all the evidence, the U.S. Attorney’s Office concluded that the evidence was insufficient to prove beyond a reasonable doubt that the officers who were involved in the shooting used excessive force or possessed the requisite criminal intent at the time of the events.
The investigation covered a chain of events that took place on Thursday, Oct. 3, 2013, between 2:13 p.m. and 2:20 p.m., a time span of just seven minutes. During that period, Ms. Carey confronted officers at three locations – one at the White House and two near the Capitol.
At 2:13 p.m., Ms. Carey, 34, of Stamford, Conn., drove into a well-marked, restricted White House checkpoint at 15th and E Streets NW, without authorization and without stopping. After seeing Ms. Carey refuse to stop at the direction of two uniformed Secret Service officers, an off-duty U.S. Secret Service officer placed a metal bike rack in her path to block Ms. Carey’s exit. Ms. Carey then struck the bike rack, and the off-duty Secret Service officer who was standing behind it, knocking both the bike rack and the officer onto the ground. The incident at the White House checkpoint lasted about 30 seconds.
Ms. Carey then drove down Pennsylvania Avenue at speeds estimated at 40-80 mph, while weaving through traffic, and ignoring red lights.
Four minutes after leaving the White House checkpoint, Ms. Carey arrived at Garfield Circle, one of two traffic circles in front of the U.S. Capitol. She drove into the circle going against the flow of traffic, almost hitting another vehicle head-on. Ms. Carey then turned her vehicle towards the permanently-affixed black barriers that block vehicular traffic on the pedestrian walkway that leads to the steps of the U.S. Capitol. The pursuing law enforcement officers blocked Ms. Carey’s exit from the left, right and rear of her vehicle, attempted to open her locked doors, and issued multiple commands for her to exit the vehicle. Ms. Carey then put her vehicle in reverse and rammed the marked cruiser that was positioned behind her vehicle.
After ramming the cruiser, Ms. Carey drove forward onto the sidewalk, forcing officers to run out of Ms. Carey’s path to avoid being struck by her vehicle. It was at this point, as Ms. Carey drove on the sidewalk between the wall that borders the U.S. Capitol lawn and the tree boxes on the sidewalk, that two U.S. Secret Service police officers and a U.S. Capitol Police officer fired eight rounds at Ms. Carey. Investigators do not believe that Ms. Carey was hit by any of these rounds. Ms. Carey then drove back around Garfield Circle, against the flow of traffic, and headed towards Constitution Avenue. The incident at Garfield Circle lasted approximately 35 seconds.
The U.S. Capitol, the U.S. Supreme Court, and other buildings within the Capitol square were put on lockdown in response to the “shots fired” report. With continued reckless and evasive driving, Ms. Carey traveled along the north side of the Capitol and headed towards the Senate and House office buildings. A U.S. Capitol Police officer who was responding to the scene in his cruiser slammed into one of the barriers that had just been raised in response to the lockdown order, causing what sounded like an explosion that was later reported by witnesses. The cruiser was totaled and the officer had to be airlifted to the hospital for treatment of his injuries.
Approximately one minute after the shooting at Garfield Circle, Ms. Carey arrived at the manned U.S. Capitol Police Truck Interdiction Point at 2nd Street and Maryland Avenue NE. With raised barriers blocking her path, Ms. Carey made a sharp left, drove up a curb, over the center median, and struck an unmarked Supreme Court police officer’s vehicle that had stopped in front of the Hart office building. After ignoring multiple commands given by officers who were running towards her vehicle with guns drawn, Ms. Carey revved her engine and then reversed her vehicle and drove directly at a U.S. Capitol Police officer who was approaching Ms. Carey’s vehicle from behind. As the U.S. Capitol Police officer ran towards the median to avoid being struck by Ms. Carey’s vehicle, he and another officer from the U.S. Secret Service (who also had fired shots at the Garfield Circle location) started firing. The two officers fired nine rounds each. Twenty seconds after Ms. Carey had arrived at the 2nd and Maryland location, her vehicle crashed into the kiosk and came to rest. Ms. Carey was unconscious at this time, and did not get out of the vehicle. No additional rounds were fired by officers after the crash.
After the shooting and after Ms. Carey’s vehicle crashed into the kiosk and came to rest, the officers on the scene discovered that there was a young child in the vehicle. They carried the child from the car. The child, who was not seriously injured, was taken to a hospital.
Medical personnel arrived on the scene and attempted to revive Ms. Carey. She was transported to a hospital, where she was pronounced dead. Ms. Carey sustained five gunshot wounds to her neck and torso area, one of which was fatal. She was not under the influence of illegal drugs or alcohol, and no weapon was recovered from inside her vehicle.
Under the applicable federal criminal civil rights laws, prosecutors must establish beyond a reasonable doubt not only that an officer’s use of force was excessive, but also that the officer willfully deprived an individual of a constitutional right. Proving “willfulness” is a heavy burden, and means that it must be proven that the officer acted with the deliberate and specific intent to do something the law forbids. Accident, mistake, fear, negligence and bad judgment do not establish such a criminal violation. After a careful, thorough and independent review of the evidence, federal prosecutors have found insufficient evidence to prove beyond a reasonable doubt that these officers used excessive force under the circumstances known to them at the time or that they acted with the requisite criminal intent. Accordingly, the investigation into this incident has been closed without prosecution.
The Justice Department remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources necessary to ensure that all allegations of serious civil rights violations are fully and completely investigated.
14-161Two Plead Guilty to Federal Heroin ChargesRead the Press Release
Alvis Porter admits to paying kickbacks; pleads guilty to tax crime
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that two defendants pleaded guilty to drug charges before United States District Judge Irene C. Berger. Amanda Nicole Canaday, 26, of White Sulphur Springs, pleaded guilty to possession with intent to distribute heroin, admitting that on August 31, 2013, she possessed 56 packets of heroin in her apartment in White Sulphur Springs. Canaday further admitted that she intended to sell the heroin packets. She faces up to 20 years in prison and a $1,000,000 fine when she is sentenced on October 30, 2014.
Joshua Daniel Osborne, 31, of Lima, Ohio, pleaded guilty to traveling in interstate commerce to facilitate an unlawful activity. Osborne admitted that on September 1, 2013, he traveled by car from Alderson, West Virginia, to Columbus, Ohio, obtained a quantity of heroin, and returned with it to Alderson, where he placed quantities of heroin into capsules, intending to sell them. He further admitted that he had made other trips to Columbus to obtain heroin, which he then sold in Alderson. Osborne faces up to five years in prison and a fine of $250,000 when he is sentenced on October 30, 2014.
These cases were investigated by the Greenbrier Valley Drug and Violent Crime Task Force. The prosecutions are being handled by Assistant United States Attorney John File. The cases are being prosecuted under the Greenbrier County Heroin and Pill Initiative, part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and the distribution of heroin.
Two East Bay Residents Indicted for $3 Million Investment FraudRead the Press Release
SAN FRANCISCO – A federal Indictment charging Jason George Rivera, Jr. and Marc Christopher Harmon with eight counts of conspiracy and wire fraud, was unsealed yesterday in federal court, announced U.S. Attorney Melinda Haag, FBI Special Agent in Charge David J. Johnson and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez. Rivera was also charged with two counts of tax evasion.
Rivera, 35, and Harmon, 41, were indicted by a federal grand jury on July 3, 2014. According to the Indictment, Rivera and Harmon offered investors the opportunity to invest in an entity known as Executive Members Management Group (“EMMG”). Through EMMG, Rivera and Harmon allegedly promised investors that their money would be used to fund efforts to purchase or trade collateralized mortgage obligations (“CMOs”), fund short-term loans to banks, or invest in other ways. Rivera also allegedly solicited loans from an investor, promising as collateral for the loans vehicles he either did not own or that he owned but then sold, and fraudulently obtained control of a CMO from other investors. The Indictment alleges that, based upon these and other representations, investors and lenders directed over $3 million to the EMMG bank account. However, Rivera and Harmon did not make the investments that they had promised, and instead diverted the majority of this money for use on personal expenses and on paying back prior investors. The Indictment further alleges that, in the tax years 2008 and 2009, Rivera evaded paying income taxes on the investor money he used for personal expenses.
Rivera and Harmon were arrested and made their initial appearances in federal court yesterday in San Francisco. Bail was set at $150,000 and both defendants were released. Rivera and Harmon’s next court appearance is in San Francisco on July 11, 2014, at 9:30 a.m., before the Honorable Maria-Elena James, United States Magistrate Court Judge, for appointment of counsel.
The maximum statutory penalty for each count of wire fraud and conspiracy, in violation of Title 18, United States Code, Sections 1343 and 1349, respectively, is 20 years’ imprisonment and a fine of $250,000 or twice the gross gain or loss from the offense, plus restitution. The statutory penalty for each count of tax evasion, in violation of Title 26, United States Code, Section 7201, is five years’ imprisonment and a fine of $250,000 or twice the gross gain or loss from the offense. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Benjamin Kingsley is the Assistant U.S. Attorney who is prosecuting the case, with the assistance of Bridget Kilkenny. The prosecution is the result of a joint investigation by the FBI, the IRS – Criminal Investigation and the Securities and Exchange Commission.
Please note, an Indictment contains only allegations and, as with all defendants, Jason George Rivera, Jr. and Marc Christopher Harmon, must be presumed innocent unless and until proven guilty.
(Rivera and Harmon indictment )
Two California Men Indicted on Federal Charges for Allegedly Releasing 2,000 Minks and Damaging Morris, ILL., Mink Farm in 2013Read the Press Release
CHICAGO — Two California men were indicted on federal charges for allegedly damaging and interfering with the operations of a mink farm in Morris, Ill., last August. Property belonging to the mink farm, about 60 miles southwest of Chicago, was damaged and approximately 2,000 minks were released from captivity on Aug. 14, 2013. The defendants also allegedly conspired to damage and interfere with the operations of a fox farm in Roanoke, Ill., northeast of Peoria, around the same time.
One defendant, TYLER LANG, was arrested today by FBI agents in El Segundo, Calif. He was scheduled to appear this afternoon in Federal Court in Los Angeles before facing further court proceedings in U.S. District Court in Chicago. The second defendant, KEVIN JOHNSON, is in state custody in Woodford County, Illinois, and both defendants are scheduled to be arraigned in Federal Court in Chicago on July 29.
Johnson, 27, also known as “Kevin Olliff,” and Lang, 25, whose last known residences were in Los Angeles, were both charged with one count each of conspiracy and interstate travel to damage and interfere with the operations of an animal enterprise. The two-count indictment was returned by a federal grand jury in Chicago on Tuesday and it was unsealed following Lang’s arrest.
According to the indictment, the Morris mink farm and the Roanoke fox farm were in the business of breeding, raising, and selling the animals to fur manufacturers.
Between Aug. 5 and Aug. 15, 2013, Johnson and Lang allegedly conspired to travel throughout the United States, including through Illinois, Iowa, and Wisconsin, for the purpose of damaging and interfering with the operations of animal enterprises, including the mink and fox farms. On Aug. 14, 2013, they allegedly traveled interstate and damaged real and personal property (including animals and records) and interfered with the operations of the mink farm in Morris, located in Grundy County. The indictment alleges the offenses resulted in economic damage exceeding $10,000.
In addition to the release of approximately 2,000 minks from their cages, portions of the fence surrounding the farm were removed allowing the minks to escape from the property. A barn was painted with the words “Liberation is Love,” and a caustic substance was poured or sprayed on two farm vehicles, damaging the paint.
Each count carries a maximum penalty of five years in prison and a $250,000 fine, and restitution is mandatory. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The arrest and indictment were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Toledo Man Charged with Possession of A Firearm Despite A Felony ConvictionRead the Press Release
An indictment was filed charging Travis Devon Nettles, age 25, of Toledo, with with possessing a firearm despite a previous felony conviction, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agencies in this case are the Bureau of Alcohol, Tobacco, Firearms and Explosives, Toledo, Ohio, and the Toledo Police Department. The case is being handled by Assistant United States Attorney Noah P. Hood.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Tamra Vance Robinson Sentenced to 33 Months in Prison for Credit Union EmbezzlementRead the Press Release
GREENEVILLE, Tenn. – On July 9, 2014, Tamra Vance Robinson, 41, of Kingsport, was sentenced to serve 33 months in federal prison by the Honorable J. Ronnie Greer, U.S. District Judge. Robinson pleaded guilty in March 2014 to a federal grand jury indictment charging her with credit union embezzlement. Upon her release from prison, Robinson will serve three years of supervised release. She was also ordered to pay $420,000 in restitution and a $100 special assessment.
Materials placed in the public record established that Robinson worked at the credit union’s branch on Stone Drive in Kingsport, Tenn., from 1998 until her theft was discovered in September 2011. She was the vault teller, drive-through window teller, and a counter teller. From April 2008 through September 2011, Robinson embezzled $420,000 from the credit union by creating a fictitious teller drawer to conceal withdrawals of cash, manipulating the credit union’s records regarding its receipt and disbursement of coins and currency, and entering false entries in the books and records for the vault, teller ledgers, teller drawers, and the automated teller machine.
The indictment and subsequent conviction of Robinson was the result of an investigation conducted by the TVA Employees Credit Union corporate security staff and Federal Bureau of Investigation. Assistant U.S. Attorney Helen Smith represented the United States.
Suffolk County, N.Y. Man Sentenced to 42 Months in Prison for Stealing Oxycodone from Manufacturing FacilityRead the Press Release
NEWARK, N.J. – A Suffolk County, New York, man who worked at a facility in Elizabeth, New Jersey, that manufactured oxycodone was sentenced today to 42 months in prison for stealing more than 70,000 pills from the facility, U.S. Attorney Paul J. Fishman announced.
Edwin Hernandez, 49, of North Babylon, New York, previously pleaded guilty before U.S. District Judge Dennis M. Cavanaugh to distribution and possession with intent to distribute oxycodone. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Hernandez was previously employed at one of the largest manufacturers of oxycodone in the United States at the company’s Elizabeth facility. On Nov. 21, 2012, he was seen by another employee scooping 30 mg oxycodone pills into a quart-sized plastic bag. A subsequent search of Hernandez’ locker by security revealed a backpack containing 8,591 30 mg oxycodone pills. Law enforcement eventually recovered an additional 61,535 pills from Hernandez’ residence. The street value of the stolen pills is $1.4 million to $2.1 million.
Oxycodone, also known as “oxy,” is a narcotic analgesic or painkiller and is classified as a Schedule II controlled substance. Demand for oxycodone-based prescription pain medication has grown to epidemic proportions in the United States and dealers profit by selling such medication on the street. Oxycodone-based Schedule II drugs have a high potential for abuse, and users will often crush and snort the pills or dissolve and inject them to get an immediate high. This abuse can lead to addiction, overdose and sometimes death.
In addition to the prison term, Judge McNulty sentenced Hernandez to three years of supervised release and ordered forfeiture of $47,000.
U.S. Attorney Fishman credited the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney J. Jamari Buxton of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel: Howard Leader Esq., New York
Strongsville Real Estate Agent Sentenced to 10 Years in Prison for Mortgage Fraud Involving Medina PropertiesRead the Press Release
A Strongsville real estate agent was sentenced to more than 10 years in prison for his role in a $3.3 million mortgage fraud scheme involving six properties in Medina, Ohio, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Thomas G. France, 44, was sentenced to 125 months in prison and ordered to pay more than $3 million in restitution. He was previously found guilty of conspiracy and bank fraud.
Joseph Beccia, age 63, of Richfield, was sentenced to two years in prison and ordered to pay more than $3 million in restitution.
Alex Blackmore, age 50, of Bronx, New York, was sentenced to a year in prison and ordered to pay $1.1 million in restitution.
Beccia and his company, Horizon Construction, built six luxury properties in Medina in 2006 and 2007. Although some of the properties were not fully completed, Beccia listed five of the six properties for sale at purchase prices that were equal to the true market value of each property.
Beccia incurred the cost of the construction of these homes without having known purchasers for these properties. Beccia was not able to sell these properties for an extended period of time and began to experience financial difficulties. Joseph Jones, an individual previously convicted in another mortgage fraud scheme, met Beccia through France, a real estate agent working in the area. France advised Beccia that Jones had a system by which Jones could sell these properties so that Beccia could pay off his debts on the properties, according to court documents.
Jones and France explained to Beccia that Jones had individuals willing to have properties purchased in their names. Jones and France also advised Beccia that in order to make Jones’ system work, the properties would need to be removed from the market and re-listed at significantly higher purchase prices. Finally, Jones and France advised Beccia that they would handle the interactions with the loan officers and securing the mortgage loans. All Beccia had to do was participate in the sale of the properties at the significantly inflated purchase prices and sign off on the loan documents as the seller, which Beccia agreed to do, according to the court documents.
Beccia advised Jones and France the amount of money he required from the sale of each the properties in order for him to repay the amounts he had borrowed to construct the homes. Then, Jones determined the additional amount of money he wanted to receive over and above the amount of money required to be distributed to Beccia after the sale of each property. Beccia and France prepared new purchase agreements for each of the six properties with the inflated purchase price necessary to satisfy the amounts of money required, according to the indictment.
France re-listed five of the six Medina properties for sale at the inflated purchase prices determined by Beccia as follows: 2940 Sutton Lane from $599,000 to $950,000; 4281 Fox Glen Drive from $395,000 to $647,000; 4320 Perian Court from $399,000 to $650,000; 3006 Sutton Lane from $529,500 to $920,000; and 4740 Lake Forest Trial from $925,000 to $1.4 million, according to court documents.
Each of the properties for which defendants secured a mortgage loan went into foreclosure, resulting in a total loss of approximately $3.3 million, according to court documents.
This case was prosecuted by Assistant United States Attorney Mark S. Bennett, following an investigation by the Cleveland Offices of the Federal Bureau of Investigations and the United States Secret Service.
State Prison Inmate Pleads Guilty to Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that an inmate at SCI Waymart pleaded guilty today before U.S. District Court Judge Malachy E. Mannion to participating in a conspiracy that distributed heroin during November 2013 to January 2014.
According to United States Attorney Peter Smith, the defendant, Eudy Gonzalez, age 24, admitted that he conspired with others to distribute and possess with intent to distribute heroin during a three-month period, while he was in prison.
Gonzalez was indicted by a federal grand jury on March 11, 2014, as a result of an investigation by special agents and task force officers of the Federal Bureau of Investigation and Scranton Police.
Gonzalez faces a possible maximum sentence of 20 years in prison and a fine up to $1 million. Judge Mannion ordered a pre-sentence investigation to be completed prior to sentencing.
One of Gonzalez’s co-defendants, Linda Reyes, previously pleaded guilty and is awaiting sentencing.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Spiro Man Sentenced to 41 Months, $613,000 Restitution for Bank FraudRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that WESLEY JOE WINKLE, age 34, of Spiro, Oklahoma, was sentenced to 41 months imprisonment, followed by 3 years of supervised release and was ordered to pay $613,135.37 in restitution for Bank Fraud, in violation of Title 18, United States Code, Section 1344.
The charges arose from an investigation by the Federal Bureau of Investigation. The defendant pled guilty in January 2014.
The Information alleged that from on or about August 2010, through April 2013, in the Eastern District of Oklahoma, the defendant, devised a scheme and artifice to obtain moneys, funds, assets securities and other property owned and under the custody or control of The First National Bank and Trust Company of Okmulgee, a federally insured financial institution, by means of materially false and fraudulent pretenses, representations and promises.
It was part of the scheme and artifice that the defendant, a loan officer for The First National Bank and Trust Company of Okmulgee, manipulated the accounts of bank customers to show fictitious loans and lines of credit to increase the amount of money in a customer's bank account. WINKLE would then withdraw money from the inflated account for his own personal use.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing.
First Assistant United States Attorney Doug Horn represented the United States.
South Florida Man Sentenced for Bilking ConsumersRead the Press Release
Follow @SDILNewsOn July 10, 2014, Peter L. Massimino II was sentenced to 87 months in federal prison to be followed by 2 years supervised release, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. United States District Court Judge Michael J. Reagan sentenced Massimino for conspiracy to commit mail fraud and wire fraud in connection with an international telemarketing scam. The plea agreement states that Massimino, and others were engaged in an extensive telemarketing scam which operated in Palm Beach County, Florida, that swindled thousands of victims of over $35 million dollars, victimizing consumers throughout the United States, and all ten Canadian Provinces and the Northwest Territory. There were at least 68 victims located in the Southern District of Illinois.
According to documents filed in Court, between October 5, 2007, and continuing until on or about January 2010, Massimino was a telemarketer and manager at Universal Marketing Solutions (UMS) and American Marketing Group (AMG). During that time, Massimino and other telemarketers falsely represented that they had found buyers for the consumers’ timeshare interests and solicited fees of up to several thousand dollars from each consumer in purported pre-paid closing costs and related expenses. There were no interested buyers, the closings did not occur, and the timeshares were not resold. “This entire scheme, put simply, was nothing but an act of thievery.” said United States Attorney Wigginton. “Again, I urge consumers to be wary of unsolicited telephone calls pitching schemes that sound too good to be true. Hang up!”
This case was investigated by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service. The prosecution of the case was handled by Assistant United States Attorneys Bruce E. Reppert and Nathan Stump and by Special Assistant United States Attorney Michael Hallock.
Serial Bank Robber Sentenced to over 60 Years in PrisonRead the Press Release
Michael Jerome Henry, 24, formerly of Ann Arbor was sentenced today to 730 months in federal prison, following his conviction on October 18, 2013 by a federal jury in Detroit on charges of bank robbery and using a firearm during a federal crime of violence, U.S. Attorney Barbara L. McQuade announced.
McQuade was joined in the announcement by Paul Abbate Special Agent in Charge of the Federal Bureau of Investigation, Detroit.
The sentence was handed down by United States District Judge Robert H. Cleland.
The evidence presented at trial established that Michael Henry and other unidentified individuals robbed a Chase Bank branch in Ypsilanti on September 22, 2009, a Bank of America branch in Ann Arbor, on two separate occasions of November 5, 2009 and October 21, 2010. Henry’s role in each robbery was to jump over the teller counter and retrieve money while his partner stood guard by the door brandishing, and sometimes discharging, a firearm. Henry and his accomplice would typically first steal a vehicle which they used to transport them to the bank, and then flee on foot to another waiting vehicle with the stolen money. The robbery proceeds amounted to $4,385, $23,179 and $11,966 respectively. Henry was caught and convicted partly due to his DNA being recovered from masks used during the robberies. Henry’s accomplice remains at large.
The case was investigated by Special Agents of the FBI, the Ann Arbor Police Department, and the Washtenaw County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kenneth Chadwell.
Sentencing for July 8 - 10, 2014Read the Press Release
Jose Luis Arrellano-Ruiz, 48, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on July 10, 2014, for illegal re-entry of a previously deported alien into the United States. Arrellano-Ruiz was arrested in Jackson, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Alvaro Leonel Perez-Huerta, 25, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on July 10, 2014, for illegal re-entry of a previously deported alien into the United States. Perez-Huerta was arrested in Jackson, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Thomas Krcelic, 37, of Chicago, Illinois, was sentenced by Federal District Court Judge Alan B. Johnson on July 8, 2014, for distribution of child pornography. Krcelic was arrested in Denver, Colorado. He received 120 months imprisonment, to be followed by 20 years of supervised release, and was ordered to pay a $900.00 fine, a $100.00 special assessment, and restitution to be determined at a later date. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Second of Four Spice Conspirators SentencedRead the Press Release
BOISE – Robert Eoff, 31, of Boise, Idaho, was sentenced today by U.S. District Court Judge Edward J. Lodge to 26 months in prison for conspiring to launder money, U.S. Attorney Wendy J. Olson announced. United States District Judge Edward J. Lodge also ordered Eoff to serve 36 months of supervised release, and complete 80 hours of community service. Eoff will self-surrender as directed by the United States Bureau of Prisons.
The Indictment alleged that Eoff and three co-conspirators, Mark Ciccarello, Troy Palmer, and William Mabry, conspired to purchase and import from China chemicals known as AM2201, UR-144, and XLR11, which they used to treat innocuous plant matter to make spiceCa synthetic cannabinoid similar to substances—including JWH018—listed in Schedule I of the Controlled Substances Act. The Indictment alleged that they conspired to launder money illegally obtained through spice manufacturing and distribution.
According to court documents, Eoff admitted that he knowingly entered into a conspiracy with co-conspirators to conduct financial transactions in connection with a “spice” manufacturing and distribution business beginning in March 2011. Eoff also admitted to knowingly participating and assisting in the financial activity of the business by engaging in bank and other financial transactions, through both domestic and foreign financial institutions. The transactions consisted of the proceeds of prior illegal spice sales and other specified unlawful activity and, in many cases, the transactions conducted through financial institutions separately consisted of criminally derived property of a value greater than $10,000; most of the transactions occurred in Idaho, Washington and California.
William Mabry was sentenced on May 21, 2014 to serve 24 months in federal prison, pay $80,000 in restitution, a pay a $100 special assessment. Troy Palmer is scheduled to be sentenced on August 25. Mark Ciccarello is scheduled to be sentenced on September 8.
The case is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Drug Enforcement Administration (DEA), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, Boise Police Department, Meridian Police Department, Ada County Sheriff’s Office, Canyon County Sheriff’s Office, and Nampa Police Department. Other federal agencies participating in the OCEDTF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Federal Bureau of Investigation (FBI), and U.S. Marshals Service.
The OCDETF program is a federal, multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
San Francisco Men Indicted for Growing Marijuana in MariposaRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against two San Francisco residents, charging them with conspiracy and marijuana cultivation, United States Attorney Benjamin B. Wagner announced.
According to court documents, Jimmy Gong Yan Lee, 54, and Wei Jin Huang, 53, were discovered cultivating approximately 2,500 marijuana plants in two dwellings in the town of Mariposa in Mariposa County. On April 14, 2014, Mariposa County Sheriff’s Deputies executed a search warrant and discovered 874 marijuana plants in one building that was devoted entirely to the cultivation of marijuana. A large generator was supplying power to the second building, a house where the bottom level and garage had been dedicated to solely growing marijuana. Lee and Huang were arrested as they exited this residence.
This case is the product of an investigation by the Mariposa County Sheriff’s Office. Assistant United States Attorney Kathleen A. Servatius is prosecuting the case.
If convicted, Lee and Huang face a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sacramento Man Sentenced to 30 Years in Prison for Child ExploitationRead the Press Release
SACRAMENTO, Calif. — Phillip J. Colwell, 54, of Sacramento, was sentenced today by United States District Judge Troy L. Nunley to 30 years in prison for producing child pornography, transmitting obscene matter to a minor, and using a cellphone to entice a minor to engage in unlawful sexual conduct, United States Attorney Benjamin B. Wagner announced.
Colwell pleaded guilty in April 2012. According to the guilty plea, Colwell engaged in a series of cellphone text conversations with a 14-year-old Sacramento boy to whom he sent sexually explicit images and with whom he sought to engage in sexual conduct. Colwell encouraged him to produce sexually explicit images of himself to send to Colwell. In July 2011, Colwell engaged in sex acts with a 16-year-old Sacramento boy, and took sexually explicit photos of him. Colwell then uploaded the photos to a website in order to promote the commercial sex trafficking of the boy.
In sentencing Colwell to 30 years, Judge Nunley stated “You are a predator. You prey on young boys.”
This case was the product of an investigation by the FBI’s Sacramento-based Innocence Lost Task Force, the Sacramento Police Department, and the Sacramento County District Attorney’s office. Assistant United States Attorney Matthew G. Morris prosecuted the case.
“Our agents and fellow Innocence Lost Task Force members bravely face the challenge of identifying and investigating individuals who seek to exploit a child’s innocence. In this case, Colwell used a mobile phone and the internet to lure and exploit children,” said Special Agent in Charge Monica M. Miller of the Sacramento division of the Federal Bureau of Investigation. “Colwell’s sentencing is an opportunity to remind all parents and guardians to monitor the text and online activity of each child and to reach out to law enforcement for help immediately if predatory activity is discovered or suspected. “
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.
Russian National Pleads Guilty to Conspiring to Smuggle Night Vision Technology to RussiaRead the Press Release
Wilmington, DE - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that Dmitry Ustinov, of Moscow, Russia, pled guilty in federal court for the District of Delaware to conspiring to export high-tech military technology, including night vision devices and thermal imaging scopes, outside the United States, in violation of Title 18, United States Code, Section 371. The military technology listed in the conspiracy offense was designated on the United States Munition List as defense articles and was prohibited from export outside the United States pursuant to the Arms Export Control Act and the International Traffic in Arms Regulations.
U.S. Attorney Oberly stated: “The export of items designated on the U.S. Munitions List as defense articles is a serious federal crime that could jeopardize the safety and well-being of United States’ service members or our allies. Individuals engaging in this activity can and will be prosecuted even if we have to reach across the ocean to make the arrest.”
"HSI will continue to pursue individuals who are willing to put America's national security at risk,” said John P. Kelleghan, special agent in charge of HSI in Philadelphia. “The illegal export of technology to prohibited countries is controlled so that it cannot be used to harm America or its allies. Enforcing export laws are one of HSI's top priorities and we will continue to work with our law enforcement partners to stop these criminals in their tracks.”
Following a lengthy investigation, the defendant was indicted by a grand jury sitting in Wilmington, Delaware, on March 25, 2013, for offenses related to violating the Arms Export Control Act and the International Traffic in Arms Regulations. On April 15, 2013, at the request of the United States Government, the defendant was arrested in Vilnius, Lithuania after entering the country from Russia. On May 7, 2013, the grand jury issued a Superseding Indictment with additional offenses related to smuggling arms outside the United States. Following the Superseding Indictment, the defendant was subsequently extradited from Lithuania to Delaware on August 23, 2013.
According to court documents filed in this case, between July 2010 and April 2013, Ustinov worked with a supplier based in Virginia to purchase and export night vision equipment from the United States to Russia without obtaining any export licenses from the U.S. Department of State. Ustinov further arranged for international wire transfers to occur so that money could be provided to the supplier’s bank account as payment for this equipment. The conspiracy offense alleged that various types of high-tech night vision devices were part of the scheme, including an L3 Insight Mini Thermal Monocular, Night Optics D-740 Night Vision Scopes, and Forward Looking Infrared Tau 640 Thermal Imaging Cameras, among other targeting devices.
The defendant faces a maximum penalty of up to five years in prison, three years of supervised release, and a $250,000 fine. A sentencing hearing has been scheduled by the District Court for October 2, 2014.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Jamie M. McCall and Trial Attorney Mariclaire Rourke of the Counterespionage Section of the U.S. Department of Justice, National Security Division. For further information, please contact AUSA McCall at 302-573-6079.
Rio Arriba County Company Settles Civil Lawsuit Alleging Illegal Mining in Santa Fe National ForestRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez announced today that Copar Pumice Company, Inc., a mining company with a principal place of business in Rio Arriba County, N.M., and the owners of Copar and its affiliated companies (Copar), have paid $2.25 million to the U.S. Government to settle a civil lawsuit alleging the unauthorized mining and removal of pumice from El Cajete Mine on the Jemez National Recreational Area of the Santa Fe National Forest. The settlement agreement also requires that Copar relinquish all rights to its mining claims within the Jemez National Recreation Area and bars Copar from bidding on mineral material sales or purchasing mineral materials from the U.S.D.A. Forest Service.
The settlement agreement resolves a lawsuit filed by the Justice Department in 2009, on behalf of the U.S. Department of Agriculture, Forest Service, against Copar and owners Richard P. Cook, Shirley A. Cook, Debbie Cantrup, and Kelly Armstrong. According to court filings, federal laws limit the types of mining activities allowed in the Jemez National Recreation Area to protect unique resource and recreational values. Copar was authorized to remove larger-sized pumice, solely for its value and use in the stonewash laundry industry. Copar abused its mining privileges by crushing pumice and removing undersized pumice from the El Cajete Mine, and selling it for uses outside the laundry industry. When Copar refused to comply with the Forest Service’s notices to cease the unlawful practice, the Justice Department filed suit alleging that Copar had trespassed on National Forest System lands by exceeding the limits of their mining authorization.
After years of legal proceedings in the case, the Justice Department and Copar executed a settlement agreement at the end of May, 2014, resolving all of the claims in the lawsuit as well as claims in several related cases. Copar tendered the $2.25 million lump sum settlement payment in late June 2014, and yesterday the parties filed a stipulation of dismissal formally ending the litigation.
U.S. Attorney Damon P. Martinez commended the work of Assistant U.S. Attorney Ruth F. Keegan, Trial Attorneys Andrew A. Smith and Dominika N. Tarczynska of the Environmental and Natural Resources Division of the U.S. Department of Justice, and Attorney Advisor Steve Hattenbach of the Office of General Counsel of the U.S. Department of Agriculture, who litigated this case on behalf of the United States.
Pulaski County Man Sentenced to 20 Years for Distributing Heroin Resulting in DeathRead the Press Release
LONDON, KY - A Pulaski County man, who has previously admitted to distributing heroin that resulted in the death of another individual, was sentenced to 20 years in prison.
U.S. District Judge Amul Thapar sentenced 30 year-old Anthony Lacortiglia for distribution of heroin resulting in death and conspiracy to distribute heroin. Following the completion of his prison term, Lacortiglia will be under the supervision of the U.S. Probation Office for 20 years. Under federal law, Lacortiglia must serve at least 85 percent of his prison sentence.
In August 2013, following the first day of trial, Lacortiglia pled guilty to the offenses. Lacortiglia admitted that on May 4, 2012, he distributed heroin to John Latham at Latham’s Pulaski County residence. A short time later, Latham died as result of injecting the heroin provided to him by Lacortiglia. Lacortiglia also admitted to conspiring with others to distribute heroin within Pulaski County.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky; Bryan B. Underwood, Acting Special Agent in Charge, FBI; Rodney Brewer, Kentucky State Police Commissioner; Robbie Clark, Director of the Lake Cumberland Area Drug Task Force and Todd Wood, Pulaski County Sheriff, jointly announced the sentence.
The investigation was conducted by Kentucky State Police, the Pulaski County Sheriff’s Office, and the Lake Cumberland Area Drug Task Force, and various agents of the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Jason Parman.
Puerto Rico Resident Sentenced to 33 Months in Prison for Conspiracy to Possess with Intent to Distribute CocaineRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez today sentenced Stephen Torres of Puerto Rico to 33 months in prison for conspiracy to possess with intent to distribute cocaine, United States Attorney Ronald W. Sharpe announced.
Torres, 27, was arrested as part of the investigation of Roberto Tapia, former Director of the Virgin Islands Department of Planning and Natural Resources (DPNR) Division of Environmental Enforcement. On November 7, 2013, Torres was charged in a 69-count third superseding indictment, along with seven other defendants, including former Virgin Islands Police Department Sergeant Angelo Hill, Raymond Brown, Hector Alcenio, Angel Negron-Beltran, Eddie Lopez-Lopez, Walter Hill, and Edwin Monsanto. On January 29, 2014, Torres pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine.
The case was investigated by the Virgin Islands Public Corruption Task Force, which comprises the Federal Bureau of Investigation (FBI); U.S. Drug Enforcement Administration (DEA); Virgin Islands Police Department; U.S. Marshals Service; Internal Revenue Service Criminal Investigation Division (IRS-CI); U.S. Department of Homeland Security, Homeland Security Investigations (HSI); U.S. Customs and Border Protection (CBP); United States Coast Guard; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Office of the Virgin Islands Inspector General. Assistant U.S. Attorneys Kelly B. Lake and Kim Lindquist prosecuted the case.
Puerto Rico Police Officers and Civilians Charged with Federal Crimes in Connection with July 2012 Robbery in Bayamon, Puerto RicoRead the Press Release
Three Police of Puerto Rico (POPR) officers and two civilians were charged with robbery, firearms violations, drug conspiracy and civil rights violations for their involvement in a July 2012 robbery in Bayamon, Puerto Rico, and an additional POPR officer was charged with lying to federal agents.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico and Special Agent in Charge Carlos Cases of the FBI’s San Juan Field Office made the announcement.
Jorge Fernandez-Aviles, 48, Fernando Reyes-Rojas, 42, and David Figueroa-Rodríguez, 32, were charged in an indictment returned yesterday in the District of Puerto Rico with one count of conspiracy to commit robbery and one count of conspiracy to commit civil rights violations; Fernandez and Reyes were also charged with one count of conspiracy to possess and distribute controlled substances and one count of firearms possession. Alexander Mir-Hernandez, 39, was charged with one count of false statements for lying to federal agents about his role and the roles of others in the July 2012 robbery.
Pedro Lopez-Torres, 35, and Luis Ramos-Figueroa, 38, were each charged by information on June 25, 2014, for their roles in the July 2012 robbery and other crimes. Lopez and Ramos pleaded guilty before U.S. District Judge José A. Fusté of the District of Puerto Rico on the same day. The charges against them were unsealed today.
At the time of the crimes charged, Jorge Fernandez-Aviles was a sergeant with POPR, Pedro Lopez-Torres, Luis Ramos-Figueroa and Alexander Mir-Hernandez were POPR officers, and Fernando Reyes-Rojas and David Figueroa-Rodríguez were civilians.
According to court documents, Reyes asked POPR Sergeant Fernandez and Officers Lopez and Ramos to participate in a robbery of a civilian. The officers agreed amongst themselves to participate. They further agreed that Officer Ramos would invite his cousin, Figueroa, to join them, and Officer Lopez would contact Officer Mir to borrow a marked patrol car to facilitate the planned robbery.
On July 14, 2012, Sergeant Fernandez, Officer Lopez, Officer Ramos and Figueroa went to the airport where they picked up a marked patrol car from Officer Mir. They drove the patrol car to meet Reyes and then went together to the location of the robbery. Sergeant Fernandez, Officer Lopez and Officer Ramos were dressed in dark colored, tactical police gear and armed with their POPR issued handguns. Figueroa and Reyes were also dressed in dark colored clothing, and Reyes appeared to have a handgun as well.
Upon entering the house through the garage, one or more of the officers identified themselves as police and falsely claimed they were executing a search warrant. They ordered several individuals in the garage to stand facing the wall and searched them for weapons. While Figueroa watched the occupants, Sergeant Fernandez, Officer Lopez, Officer Ramos and Reyes searched the property. They ultimately went to a shed in the backyard, where Reyes found cocaine and exclaimed, “Bingo!” At that point, they all departed in their respective vehicles. A few days later, Reyes met with Lopez and gave him money, which Reyes explained was a portion of the proceeds from the sale of the cocaine he took on the day of the robbery. Officer Lopez split the money with Sergeant Fernandez and Officer Ramos.
According to the indictment, Officer Mir was interviewed by Special Agents of the FBI and lied. Officer Mir falsely claimed that he did not recognize a photograph of Officer Lopez; that he had not met with Officer Lopez in more than six months; and that he did not provide the patrol car that was used to commit the July 2012 robbery.
An indictment is merely an allegation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
This case is being investigated by the FBI’s San Juan Division. The case is being prosecuted by Trial Attorneys Heidi Boutros Gesch and Marquest J. Meeks of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Mariana Bauza of the District of Puerto Rico.Prosecution of Methamphetamine DTO Results in Lengthy Federal Prison SentencesRead the Press Release
Large Quantities of Meth, Numerous Firearms and Several Vehicles, Including a Bentley, Were Seized
DALLAS — The last defendant convicted in a Drug Trafficking Organization (DTO) conspiracy that distributed large quantities of methamphetamine in the North Texas area was sentenced today, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Dallas resident, Lashaun Lamont Warren, 40, was sentenced today by U.S. District Judge Reed C. O’Connor to 120 months in federal prison. Warren pleaded guilty in August 2013 to one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine. All told, defendants convicted in the case, all Dallas residents, received federal prison sentences ranging from 120 months to 292 months, as noted below:
Tony Hernandez, aka “T,” 31, 200 months
Johnny Angel Gamez, 22, 120 months
Sergio Picasso-Nieto, 35, 240 months
Miguel Quintero, aka “Chuckie,” 20, 262 months
Agne Vasquez, 29, 292 months
Andres Vasquez, 45, 151 months
Baltazar Vasquez, 25, 168 months
Roberto Vasquez, aka “Beto/Bubba,” 21, 240 months
Maria Reyna Vasquez, 46, 240 months
All defendants pleaded guilty to their respective roles in the conspiracy, with the exception of defendant Agne Vasquez, who was convicted at trial in September 2013. At the time of his arrest, agents seized multiple firearms, including assault weapons, some of which he posed with on Facebook.
The investigation dates back to 2007, when the Dallas Police Department and the FBI began investigating a large-scale methamphetamine and cocaine trafficking organization operating in the Dallas-Fort Worth metroplex. Tony Hernandez was the organization’s leader, having gained that role after members of the Los Zetas Cartel murdered his brother, Gonzalo Hernandez.
In 2011, the FBI began investigating the Tony Hernandez DTO and learned the organization illegally imported approximately 1,200 kilograms of methamphetamine and multiple kilograms of cocaine from Mexico on a monthly basis. Once the drugs were smuggled across the border, they were transported to various distribution locations in Dallas.
During the course of the investigation, law enforcement also learned that Hernandez acquired multiple kilograms of cocaine and methamphetamine in Houston, Texas, and used members of his DTO to transport it to Dallas for distribution.
The investigation involved numerous undercover purchases involving significant quantities of methamphetamine and large amounts of cash as well as several court-ordered wiretaps. Law enforcement executed federal search warrants at four Dallas residences on Seevers Avenue that were used to store large shipments of cocaine, methamphetamine and large sums of cash derived from the distribution of the illegal narcotics. Law enforcement also executed state search warrants on Alaska Drive in Dallas and at a local residential tower. The investigation resulted in significant seizures of methamphetamine, cocaine, firearms and vehicles, including a Bentley Continental.
The FBI and the Dallas Police Department were in charge of the investigation.
Philadelphia Man Charged with Possession of Stolen PistolRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania today announced the return of a three-count indictment against Steven Oliver Singletary, age 27, of Philadelphia, Pennsylvania. The indictment charges Singletary with possession of a firearm by a convicted felon, possession of a stolen firearm, and possession of a firearm with an obliterated serial number.
According to United States Attorney Peter Smith, the indictment alleges that on July 2, 2014, in Williamsport, Pennsylvania, Singletary, a convicted felon, possessed a stolen Glock Model 17 9mm pistol which had an obliterated serial number.
If convicted of all the charges alleged in the indictment, Singletary faces a 25-year prison term, a three-year term of supervised release, and a $750,000 fine.The case was investigated by the Pennsylvania State Police, the Williamsport Bureau of Police, and the Federal Bureau of Investigation, Philadelphia Division. Prosecution of this matter has been assigned to Assistant United States Attorney George J. Rocktashel.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Owner of Castro Valley Pizzeria Charged with Tax FraudRead the Press Release
OAKLAND – Frank Eugene Gemignani, III, was charged by a grand jury on June 19, 2014, with 11 counts of failure to pay employment taxes and one count of filing a false tax return, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
According to the Indictment, from about 1991 through 2012, Gemignani operated Pyzano’s Pizzeria in Castro Valley. As the sole proprietor, Gemignani exercised control over every aspect of Pyzano’s business affairs, including approving payments by the company and controlling its bank accounts. Gemignani was also responsible for collecting, accounting for, and paying to the IRS, payroll taxes withheld from his employees’ paychecks.
According to the Indictment, from April 1, 2008 through Dec. 31, 2010 Gemignani deducted and collected approximately $185,249 in federal income taxes and Federal Insurance Contributions Act taxes (FICA) from Pyzano’s employees’ wages, but failed to pay these taxes to the IRS. Gemignani is also charged with filing a false U.S. Individual Income tax return for 2007.
Gemignani made his initial appearance before the Honorable Donna M. Ryu, United States Magistrate Court Judge, on July 8, 2014, and his Indictment was unsealed at that time.
An Indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. The maximum penalty for each count of failure to pay over employment taxes, in violation of Title 26, U.S.C § 7202, is five years in prison, and a fine of $250,000. The maximum penalty for filing a false tax return, in violation of Title 26, U.S.C § 7206(1), is three years in prison, and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Michael G. Pitman is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
(Gemignani indictment )
Ocoee Man Convicted of Aiding and Abetting Attempted Commercial RobberyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found Jacques Maddox (22, Ocoee) guilty of one count of aiding and abetting the attempted robbery of a Walgreens store located at 5501 South Kirkman Road in Orlando. Maddox faces a maximum penalty of 20 years’ imprisonment. His sentencing hearing is scheduled for October 10, 2014. Maddox was indicted on April 2, 2014.
According to testimony and evidence presented at trial, on the night of September 2, 2013, Maddox and his friend Joe E. Clinton went to the Walgreens store on South Kirkman Road. After casing the store for hours, Maddox and Clinton walked into the store for the final time around 11:00 p.m. The men split up, and while Maddox took his position as a lookout near the center of the Walgreens, Clinton forced the store’s manager inside the office and pulled out a gun. Clinton then demanded that the manager open the store’s safe, threatening to shoot him if he didn’t do as he was told. When the manager refused to comply with Clinton’s demands, Clinton pistol whipped the manager, striking him several times in the head and shoulders with his gun. Clinton then ran out of the office, met up with Maddox in the middle of the store, and pulled his gun on other employees and store customers as he and Maddox fled.
On March 24, 2014, Clinton pleaded guilty to one count of aiding and abetting the attempted robbery of the Walgreens on September 2, 2013, one count of robbery of a CVS store located at 1201 East Colonial Drive in Orlando, on September 10, 2013, and two counts of using and carrying a firearm during and in relation to those violent crimes. He faces a maximum penalty of 20 years in prison on each of the attempted robbery and robbery counts. For the firearms convictions, Clinton faces a combined mandatory minimum sentence of 32 years’ imprisonment, to run consecutively to any other prison term imposed. His sentencing hearing is scheduled for July 25, 2014.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, & Explosives, and the Orlando Police Department. It is being prosecuted by Assistant United States Attorney Joseph M. Schuster.
New York Man Sentenced to Federal Prison for Trafficking Cocaine into Fairfield CountyRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that DOMINICK RIBUSTELLO, 53, of the Bronx, N.Y., was sentenced yesterday by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 18 months of imprisonment, followed by three years of supervised release, for trafficking cocaine.
This matter stems from a year-long investigation headed by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and Norwalk Police Department into the distribution of oxycodone, cocaine and marijuana in Fairfield County. Sixteen individuals were charged and convicted as a result of this investigation.
According to court documents and statements made in court, RIBUSTELLO regularly supplied distribution quantities of cocaine to co-defendants Alfred Catino of Danbury and Konstantinos Zografidis of Norwalk.
RIBUSTELLO was arrested on June 5, 2012. On March 18, 2014, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, cocaine.
Catino and Zografidis have pleaded guilty and await sentencing.
This matter was investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and the Norwalk Police Department, with assistance provided by the Connecticut State Police and the Bridgeport, Stamford, Stratford and Westport Police Departments. The case is being prosecuted Assistant U.S. Attorneys Vanessa Richards and Michael Runowicz.
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(203) 821-3722 [email protected]Natrona Heights Man Admits Possessing Sexually Explicit Videos and Images of ChildrenRead the Press Release
PITTSBURGH – An Allegheny County man pleaded guilty in federal court to a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Terry Robert Cousins, Jr., 34, of Natrona Heights, Pa., pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that in and around January of 2012, Cousins knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Judge Schwab scheduled sentencing for Nov. 7, 2014, at 10 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Allegheny County Police Department conducted the investigation that led to the prosecution of Cousins.
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.
Muskogee Man Sentenced to 108 Months, $5,590 Restitution for Possession of Material Involving Sexual Exploitation of MinorsRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that MARCUS WAYNE HALL, age 42, of Muskogee, Oklahoma, was sentenced to 108 months imprisonment, followed by 5 years of supervised release for Possession of Certain Material Involving the Sexual Exploitation of Minors, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and 2252(b)(2). HALL was also ordered to pay $5,590.00 in restitution.
Charges arose from an investigation by the Colorado Springs Police Department and the Federal Bureau of Investigation. The defendant was indicted in June 2013 and pled guilty in February 2014.
The Indictment alleged that between in or about November 2011 and March 1, 2012, in the Eastern District of Oklahoma, the defendant, did knowingly possess and attempt to possess matters which contained visual depictions, as that term is defined in Title 18, United States Code, Section 2256(5), the production of said visual depictions involved the use of minors engaging in sexually explicit conduct, as that term is defined in Title 18, United States Code, Sections 2256(2)(A)-(B), and said visual depictions were of such sexually explicit conduct, and had been transported in interstate commerce by computer.
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 Edward Snow represented the United States.
More Charges for Former Prison DoctorRead the Press Release
A superseding indictment was filed today charging the former medical director of Lehigh County Prison with financial aid fraud to get Pell Grants for his four eldest children. Dennis Erik Fluck Von Kiel, 58, of New Tripoli, PA, also allegedly tried to file fraudulent claims for social security disability insurance. Von Kiel was awaiting trial on conspiracy and tax evasion charges.
The superseding indictment contains 11 new counts. Von Kiel was originally charged with six counts including conspiracy to defraud the United States and five counts of attempting to evade or defeat federal taxes. The new counts include corruptly endeavoring to interfere with the due administration of the Internal Revenue Code, knowingly failing to file tax returns, wire fraud, perjury at a bankruptcy proceeding, and mail fraud.
According to the indictment, Von Kiel engaged in a series of illegal schemes since 2001, which were designed to help him evade creditors, including the IRS and the Department of Health and Human Services to whom Von Kiel owed hundreds of thousands of dollars in outstanding medical school loans. Von Kiel then allegedly lied on applications to the Department of Education for financial student aid for four of his children, which enabled them to receive more than $36,000 in federal Pell Grants for their college educations. Most recently, the indictment alleges, Von Kiel tried to file a fraudulent claim for social security disability benefits by falsely claiming that he suffered from post-traumatic stress disorder.
Von Kiel is a doctor of osteopathy whose medical practice included treating inmates at LCP from approximately March 1989 until approximately August 2013. Most of Von Kiel’s alleged schemes involved him pretending to become a minister of a “church” called the International Academy of Lymphology (which later changed its name to the International Academy of Life and then the Christian Forum Assembly), purporting to take a “vow of poverty,” and then claiming that he had no taxable income because his earnings belonged to “church.” The indictment alleges that Von Kiel convinced his employer that he was exempt from federal tax withholdings and directed his employer to deposit his bi-weekly paychecks into bank accounts for his “church.” Once the money arrived in those accounts, co-conspirators would transfer nearly the same amount of money into Pennsylvania bank accounts controlled by Von Kiel. Von Kiel then allegedly used the money to pay for all of his family’s day-to-day living expenses and to buy some luxury items.
Von Kiel has been held without bail at the Federal Detention Center since his arrest on February 28, 2014. His trial is scheduled to begin on September 10, 2014, before the United States District Judge Jeffrey L. Schmehl.
If convicted, the defendant faces a maximum possible sentence of 108 years in prison, three years of supervised release, a fine of up to $2,895,000, and a $1,700 special assessment.
The case was investigated by the Internal Revenue Service Criminal Investigations, the FBI, and the Department of Education’s Office of Inspector General, It is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Monroe County Man Sentenced to Prison on Fraud and Tax ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Monroe County man was sentenced today, in federal court in Scranton, by United States District Judge Malachy Mannion, to serve 70 months in prison on charges of bank fraud and assisting in the preparation of a false federal income tax return.
According to United States Attorney Peter Smith, Brian Hewson, age 39, a resident of Canadensis, pleaded guilty to the charges in September, 2013. The 70 month sentence results from a 70 month sentence on the bank fraud charge and a 36 month sentence on the tax charge, to be served concurrently.
Hewson, who formerly operated a business known as Hewson Constracting, was charged after an investigation conducted by the United States Secret Service and the Internal Revenue Service, Criminal Investigation. An Indictment was filed against Hewson in December, 2012, charging him with bank fraud. In August, 2013, an Information was filed charging Hewson with bank fraud and aiding the filing of a false federal income tax return. The charges against Hewson arose from his involvement in a scheme to defraud customers of his contracting company by misappropriating checks and other banking information belonging to the customers and fraudulently causing money transfers to be made to Hewson and others. Hewson was also held accountable at sentencing for three counterfeit checks, totaling $150,000, that he attempted to cash while on pretrial release. Hewson did not declare the income from his crimes on his federal income tax return. In addition to the prison sentence, Hewson was ordered to make restitution in the amount of $379,000.
The case was prosecuted by Assistant United States Attorney William S. Houser.
Mayor of Rio Grande Indicted on Charges of Bribery, Extortion and Obstruction of JusticeRead the Press Release
SAN JUAN, P.R. – Today, Eduard Rivera-Correa, mayor of the municipality of Río Grande, Puerto Rico, was arrested by Federal Bureau of Investigation (FBI) agents on charges of bribery, attempted extortion and obstruction of justice, announced Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. The indictment authorized by a federal grand jury this week, charges Rivera-Correa with one count of bribery, one count of attempted extortion and two counts of obstruction of justice. The indictment also charges attorney Alejandro Carrasco with four counts of bribery concerning programs receiving federal funds.
According to the indictment, attorney Carrasco and mayor Rivera-Correa, did corruptly solicit, demand, and knowingly accepted and agreed to accept kickbacks from a person known as Contractor A, intending to be influenced and rewarded in connection with different business transactions involving $5,000 or more for construction consulting services. The payments received by the mayor exceeded $39,000; and the payments received by attorney Carrasco exceeded $183,365. Attorney Carrasco provided legal services to the municipalities of Barceloneta, Juncos and Río Grande during this time and obtained kickbacks in exchange for his assistance with securing these contracts.
Rivera-Correa is also charged in Count Six with attempted extortion of political contributions through the sales of political tickets to a dinner. According to the indictment and motion for detention pending trial, Rivera-Correa used his office and economic fear to extort $4,000 from Contractor A. The tickets, as described in the motion for bail pending appeal were presented by Rivera-Correa as the “keys for 2013” or “passes for 2013” and sold in exchange for continued business with the Municipality of Rio Grande.
“Dishonest public officials who request illegal payments from contractors as a regular course of business do not serve the interests of their constituents. This alleged breach of public trust will not be tolerated,” said US Attorney Rosa Emilia Rodríguez-Vélez. “We will continue to prosecute public officials who abuse their positions of trust for personal gain.”This case was investigated by the FBI and is being prosecuted by Senior Litigation Counsel, Charles R. Walsh. The Office of Government Ethics collaborated during the investigation.
If found guilty, the defendants could face up to 10 years in prison and a $250,000 fine. Criminal indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
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Manhattan U.S. Attorney Announces Return to Mongolia of Fossils of over 18 Dinosaur SkeletonsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and James T. Hayes, Jr., Special Agent-in-Charge of the New York Office of U.S. Immigration
and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), announced today the return to the Mongolian government of the fossilized remains of over 18 dinosaur skeletons, including two Tyrannosaurus bataar skeletons that were unlawfully taken from Mongolia. The Office already returned one Tyrannosaurus bataar, fully prepared for display, to Mongolia in a ceremony held in May 2013.
The repatriation represents the culmination of a two-year effort to return numerous dinosaur fossils that were unlawfully taken from Mongolia, some of which were illegally smuggled into the United States using false customs importation documents, and some of which were voluntarily forfeited to the United States for return to Mongolia despite never having been brought into the country. That two-year effort included two successful civil forfeiture law suits, a successful criminal investigation and prosecution, and separate civil actions undertaken to secure the transfer of the groups of fossils.
The Mongolian dinosaur fossils being returned today include:
- Two additional Tyrannosaurus bataar skeletons;
- A skeleton of a Saurolophus angustirostris, a duckbilled, plant-eating dinosaur, and a partial skeleton of an additional Saurolophus;
- Two freestanding Oviraptors, dinosaurs known (perhaps apocryphally) for eating the eggs of other dinosaurs;
- A rock matrix containing at least four Oviraptors;
- A rock slab containing two Gallimimus skeletons, which were large, ostrich-like dinosaurs;
- Two additional Gallimimus skeletons;
- The partial skeleton of an Ankylosaurus, a dinosaur known for having a heavily armored body and a bony club-like tail;
- The skeleton of a Protoceratops, a dinosaur about the size of a large dog with a distinctive neck frill;
- One restored composite “egg nest” display piece made of composite dinosaur egg fossils;
- Several small, unidentified prehistoric lizards and turtles; and
- Numerous partial skeletons.
Manhattan U.S. Attorney Preet Bharara said: "Today, we return a veritable nest of dinosaurs that includes two additional Tyrannosaurus bataar skeletons, along with numerous other examples of fossils of dinosaurs native to the Gobi Desert. This is a historic event for the U.S. Attorney’s Office, in addition to being a pre-historic event, and we are proud to participate in the return of these dinosaur skeletons to their rightful home.”
HSI Special Agent-in-Charge James T. Hayes, Jr., said: “The fossils returned today do not belong in the hands of any private collection or one owner. They belong to the people of Mongolia where they will be displayed in their national museum alongside the Bataar ICE repatriated last year. HSI will not allow the illicit greed of some to trump the cultural history of an entire nation.”
According to the Criminal Complaint and Information, related Civil Complaints and related filings, and statements made in Court:
Civil and Criminal Actions
In March 2012, the Government initiated a civil forfeiture action in order to recover a nearly complete Tyrannosaurus bataar skeleton (the “First Bataar”), which was sold at auction for over $1 million. Tyrannosaurus bataar was a carnivorous dinosaur that lived during the late Cretaceous period, approximately 70 million years ago. The Tyrannosaurus bataar, which has only been found in what is now Mongolia, was first discovered in 1946 during a joint Soviet-Mongolian expedition to the Gobi Desert in the Mongolian Ömnögovi Province. Mongolian law enacted in 1924 declares dinosaur fossils to be the property of the Government of Mongolia, and criminalizes their export from the country.
The First Bataar had been taken from Mongolia and sent to Great Britain without permission from the Mongolian government. It was then imported into the United States from Great Britain in a fashion contrary to federal law, using customs importation documents that contained numerous false statements.
By 2012, Texas-based Heritage Auctions, Inc., offered the First Bataar at an auction conducted in New York City. Prior to the sale, the Government of Mongolia sought, and was granted, a Temporary Restraining Order prohibiting the auctioning, sale, release, or transfer of the Tyrannosaurus Bataar Skeleton by a Texas State District Judge. Notwithstanding the state court order, Heritage Auctions completed the auction and the Tyrannosaurus Bataar Skeleton sold for over $1 million. However, the sale was contingent upon the outcome of any court proceedings instituted on behalf of the Mongolian Government.
On May 22, 2012, the President of Mongolia, Tsakhia Elbegdorj, sent a letter to the United States Attorney’s Office for the Southern District of New York formally requesting the Office’s “assistance in preserving Mongolia’s cultural heritage in this rare national treasure by . . . seeking forfeiture of . . . the Tyrannosaurus bataar skeleton.”
On June 5, 2012, at the request of the President of Mongolia, several paleontologists specializing in Tyrannosaurus bataars examined the First Bataar and concluded that it is in fact a Tyrannosaurus bataar skeleton that was unearthed from the western Gobi Desert in Mongolia between 1995 and 2005. Shortly thereafter, on June 18, 2012, the United States Attorney’s Office filed a civil action seeking the forfeiture of the Bataar skeleton and the District Court issued a warrant authorizing ICE’s Homeland Security Investigations (HSI) to seize the Bataar skeleton.
On September 24, 2012, the United States Attorney’s Office filed an amended civil forfeiture Complaint which included the original paleontological reports as well as additional reports from those same paleontologists and other paleontologists. The additional reports definitively stated that given the particularized coloring of the bones of the First Bataar skeleton, the First Bataar skeleton undoubtedly came from Mongolia’s Gobi Desert.
On October 17, 2012, Eric Prokopi, a self-described “commercial paleontologist” who had imported the First Bataar, was arrested on one count of conspiracy to smuggle illegal goods, possess stolen property, and make false statements, one count of smuggling goods into the United States, and one count of interstate sale and receipt of stolen goods. Prokopi owned and ran a business out of his Florida home in which he bought and sold whole and partial fossilized dinosaur skeletons. The charges stemmed from Prokopi’s illegal importation of the Bataar and other dinosaur fossils into the United States, including the remains of a small, flying dinosaur from what is now China that had previously been administratively forfeited.
Not long after his arrest, on December 27, 2012, Prokopi pled guilty to engaging in a scheme to illegally import the fossilized remains of numerous dinosaurs that had been taken out of their native countries illegally and smuggled into the United States. As part of his plea agreement, Prokopi consented to the forfeiture of the First Bataar. Prokopi also agreed to forfeit other Mongolian dinosaur fossils that the investigation had uncovered, including a second nearly complete Tyrannosaurus bataar skeleton (the “Second Bataar”), a Saurolophus Angustirostris skeleton (the “Saurolophus,” a duckbilled dinosaur that lived during the Cretaceous period), and an Oviraptor skeleton, all of which had been in his possession but have since been recovered by the U.S. Attorney’s Office. He further agreed to forfeit his interest in a third Tyrannosaurus bataar skeleton (the “Third Bataar”), which was located in Great Britain.
On February 2, 2013, the Government filed a second civil action against several of the dinosaur fossils that had been in Prokopi’s possession. These included the Saurolophus, possession of which had been transferred to a California auction house, and a matrix containing at least five Oviraptor skeletons (the “Raptor Matrix”), which the California auction house had, at one point, put up for sale.
Recovery and Repatriation of Dinosaur Skeletons
On May 6, 2013, and May 9, 2013, the civil actions concluded when U.S. District Judge P. Kevin Castel signed judgments forfeiting the First Bataar, the Second Bataar, the Saurolophus, two Raptors, and the Raptor Matrix for the purpose of their return to the Government of Mongolia. The California auction house agreed to assist in facilitating the return of the Saurolophus and the Raptor Matrix to Mongolia, consenting to the forfeiture of both items and agreeing to furnish the United States Attorney’s Office with a metal stand used to display the Saurolophus.
Separately, on May 1, 2013, U.S. District Judge Harold Baer signed a stipulation arranging for the return of, among other fossils, the Third Bataar; a rock slab containing two Gallimimus skeletons (the “Gallimimus slab”), two additional Gallimimus skeletons, an Ankylosaurus skeleton and Ankylosaurus skull, a Protoceratops skeleton, and one restored composite egg nest display piece made of composite dinosaur egg fossils (together, the “Moore dinosaurs”) provided to the United States Attorney’s Office by Christopher Moore, a British citizen and onetime business partner of Eric Prokopi. During the U.S. Attorney’s Office’s investigation, Moore informed the Government of his possession of the Moore dinosaurs. Upon being advised that the Moore dinosaurs had been stolen from Mongolia, Moore agreed to send them to the United States Attorney’s Office for their return to Mongolia.
On July 3, 2014, Prokopi was sentenced to a term of three months in prison by U.S. District Judge Alvin K. Hellerstein.
The First Bataar was formally returned to the Government of Mongolia in a Repatriation Ceremony held in New York on May 6, 2013. The remaining dinosaur fossils will be returned to the Government of Mongolia today.
Mr. Bharara praised the investigative work of HSI. Mr. Bharara also thanked Mongolian authorities for their assistance in the case.
The forfeiture actions were handled by the Money Laundering and Asset Forfeiture Unit of the U.S. Attorney's Office. Assistant U.S. Attorneys Sharon Cohen Levin and Martin S. Bell were in charge of the litigation. The criminal case was handled by the Complex Frauds Unit. Martin S. Bell was in charge of the prosecution.