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Friday 16 May 2014
Mountain City and Shades Valley Residents Sentenced for Conspiring to Manufacture MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – Two defendants involved in a methamphetamine conspiracy were sentenced on May 14, 2014, by the Honorable J. Ronnie Greer, U. S. District Judge. Daniel W. Johnson, 33, of Mountain City, Tenn., was sentenced to serve 130 months in federal prison, to be followed by three years of supervised release. Gerald Dean Campbell, 45, of Shady Valley, Tenn., was sentenced to serve 116 months in federal prison, to be followed by eight years of supervised release. There is no parole in the federal system.
A total of 20 defendants were indicted in May 2013 for conspiring to manufacture methamphetamine and possessing equipment, chemicals, materials, and products to be used in the manufacture of methamphetamine. Seven other defendants named in the indictment were also charged with distributing methamphetamine. All other defendants in this case have been adjudicated guilty and will be sentenced later this year.
The charges against these defendants stemmed from a lengthy investigation, from August 2006 to May 2013. The investigation revealed that the defendants conspired to obtain pseudoephedrine and other products needed to manufacture methamphetamine, from various sources in the Eastern District of Tennessee, the Western District of North Carolina and the Western District of Virginia. The pseudoephedrine and other products were then used to manufacture methamphetamine utilizing the “shake and bake” method. The methamphetamine was used and distributed in the Eastern District of Tennessee.
This investigation was a result of the collaborative efforts of the Johnson County Sheriff’s Office, 1st Judicial District Drug Task Force, the Tennessee Methamphetamine Task Force, and the DEA. Assistant U.S. Attorneys Suzanne Kerney-Quillen and Caryn Hebets represented the United States.
Morris County, N.J., Doctor Sentenced to Prison, Fined for Taking Cash Kickbacks for Patient ReferralsRead the Press Release
NEWARK, N.J. – A doctor practicing internal medicine in Orange, N.J., was sentenced today to five months in prison and five months of home confinement for taking cash kickbacks for making referrals to a diagnostic testing lab in Orange, U.S. Attorney Paul J. Fishman announced.
Mahesh Patel, 64, of Florham Park, N.J., a board-certified physician, previously pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with soliciting and receiving more than $6,000 in illegal cash kickbacks for patient referrals in violation of the federal health care anti-kickback statute.
Including Patel, 17 defendants – including 15 doctors – have been convicted in connection with the government’s ongoing investigation of illegal payments made by Orange Community MRI LLC (Orange MRI), a diagnostic testing facility.
According to documents filed in this case and statements made in court:
Patel operated his own medical practice in Orange. From 2010 through November 2011, Patel agreed to take cash payments from Orange MRI in exchange for MRI scans he referred to the diagnostic testing facility. Patel admitted to receiving cash on a per-patient basis for nearly two years, and that on one of the occasions on which he received cash, Oct. 13, 2011, he received $375 in exchange for his prior referral of Medicare and Medicaid patients.
In addition to the prison term, Judge Cecchi sentenced Patel to serve two years of supervised release, forfeit $6,600 and pay a $30,000 fine.Ashokkumar Babaria, 64, of Moorestown, N.J., Orange MRI’s former medical director, has been ordered to forfeit more than $2 million in revenue from corrupt referrals. Chirag Patel, 38, of Warren, N.J., Orange MRI’s former executive director, awaits sentencing and has agreed to forfeit $89,180 in corrupt gains. In addition, 13 health care providers, including Mahesh Patel, have agreed to forfeit a total of $460,140 in illegal cash kickbacks. Two health care providers were convicted at trial and forfeiture has yet to be determined.
U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Tom O’Donnell, who investigated the case with criminal investigators from the U.S. Attorney’s Office.The government is represented by Deputy Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit and Acting Chief of the office’s General Crimes Unit, Joseph Mack; and Deputy Chief Scott B. McBride of the office’s Economic Crimes Unit in Newark.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered approximately $535 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Robert J. Cleary Esq. and William C. Komaroff Esq., New York
14-178Mississippi Man Pleads Guilty to Sexual Exploitation of ChildrenRead the Press Release
Jackson, Miss. - Gary Tubby, 53, a member of the Mississippi Band of Choctaw Indians, pled guilty before U.S. District Judge Carleton W. Reeves today to sexual exploitation of children, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen. The offense occurred on the Tribal lands of the Mississippi Band of Choctaw Indians.
Tubby will be sentenced on August 5, 2014, and faces a minimum prison sentence of 15 years, a maximum prison sentence of 30 years, and a maximum fine of $250,000.00.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Patrick Lemon.
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
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Mescalero Apache Man Pleads Guilty to Federal Assault Charges Arising out of Drive-By ShootingRead the Press Release
ALBUQUERQUE – Rufus Juan Lester, 22, a member of the Mescalero Apache Nation, pleaded guilty this afternoon to federal assault charges arising out of a drive-by shooting of a home located on the Mescalero Apache Reservation.
Lester was arrested on Aug. 6, 2013, on a criminal complaint alleging that he fired multiple shots at a residence located on the Mescalero Apache Reservation in the early hours of Nov. 24, 2012. Lester subsequently was indicted and charged with eight counts of assault with a dangerous weapon and one count of discharging firearms during and in relation to crimes of violence.
During today’s proceedings, Lester pled guilty to Counts 1 through 8 of the indictment charging him with assault with a dangerous weapon. In his plea agreement, Lester admitted riding in the passenger seat of a vehicle while another person drove past a residence in Mescalero, N.M. As the vehicle went past the residence, Lester used two rifles to shoot at the residence. Lester acknowledged that the residence was occupied by two adults and six children at the time of the shooting, and that he assaulted each of the occupants when he shot at the residence.
Lester has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Lester faces a statutory maximum penalty of ten years in prison on each of the eight assault charges.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan, of the U.S. Attorney’s Las Cruces Branch Office.
Luzerne County Man Charged with Illegally Possessing A FirearmRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 38-year-old Mountaintop resident, who was indicted in January 2014 by a federal grand jury in Scranton for unlawfully possessing a firearm as a convicted felon, was arrested yesterday by federal agents.
According to United States Attorney Peter Smith, the grand jury alleges that Joseph White unlawful possessed a Hi Point .45 caliber firearm in June 2013 in Kingston, Pennsylvania. The indictment alleges that, at the time he possessed the firearm, White was a convicted felon.
White appeared before Magistrate Judge Thomas M. Blewitt for his initial appearance. Magistrate Judge Blewitt ordered White detained pending a detention hearing scheduled for next week.
The charge stems from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Kingston Police. Agents from the Federal Bureau of Investigation and Deputy United States Marshals assisted in the apprehension of White.
If the defendant is convicted of the charge he faces up to 10 years in prison and a $250,000 fine.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
****Ludlow Man Pleads Guilty to Child Sexual Exploitation ChargesRead the Press Release
BOSTON - A Ludlow man pleaded guilty in U.S. District Court in Springfield today to child exploitation charges.
James Pease, 35, pleaded guilty to four counts of sexual exploitation of a child, receipt of child pornography, and possession of child pornography. In March 2013, Pease was indicted. Sentencing is scheduled for Sept. 5, 2014.
During 2010 and 2012, Pease surreptitiously recorded minor females while they showered. From 2006 to 2012, Pease also received and possessed child pornography which he obtained from the Internet.
Pease faces a statutory mandatory minimum of 15 years and a maximum of 30 years in prison on the charge of sexual exploitation of a child; a statutory mandatory minimum of five years and a maximum of 20 years in prison on the charge of receipt of child pornography; and a statutory maximum of 10 years on the charge of possession of child pornography. Additionally, Pease faces a minimum of five years and up to a lifetime of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz and Leigh Alistair Barzey, Resident Agent in Charge of the Department of Defense’s Office of Inspector General, Defense Criminal Investigative Service, made the announcement. The case is being prosecuted by Alex Grant of Ortiz’s Springfield Branch Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Leader of Hartford Drug Trafficking Ring Sentenced to More Than 19 Years in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ANGEL ROSA, also known as “Little” and “Daddy,” 37, of New Britain, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 235 months of imprisonment, followed by five years of supervised release, for operating a Hartford-based narcotics trafficking ring. Two other members of the ring were also sentenced to prison terms earlier this week.
According to court documents and statements made in court, this matter stems from a joint law enforcement investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department into gang-related narcotics trafficking in Hartford’s South End. The investigation specifically targeted a heroin and cocaine trafficking organization headed by Rosa, who is a member of the Los Solidos street gang, and his cousin, Angel Rosa, also known as “Mo Betta” and “Fab.” Rosa, aka “Little,” supervised the drug trafficking ring, which included several other family members, through fear and intimidation. “Mo Betta” managed the daily operations of the organization, facilitated the delivery and transportation of large quantities of heroin, and supervised numerous drug sellers who distributed heroin and other narcotics in the Zion Street area. At times, “Little” and “Mo Betta” used, or threatened to use, violence to ensure the success of the organization.
As a result of the investigation, 21 individuals were charged with various federal offenses, and law enforcement officers seized narcotics, one firearm, approximately $230,000 in cash, eight vehicles and jewelry.
“Little” has been detained since his arrest on April 11, 2013. A search of his residence on that date revealed more than 500 grams of cocaine packaged for distribution, approximately 24 grams of crack cocaine, and $205,240 in cash. He was ordered to forfeit the cash, as well as a 2006 Porsche Cayenne, a 2007 Lexus GS350 and a 2007 Acura RL.
“Little’s” criminal history includes multiple felony convictions and he was on state probation after a conviction for distributing narcotics at this time of this offense.
On January 8, 2014, “Little” pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin.
“Mo Betta” pleaded guilty to the same charge and, on April 29, 2014, he was sentenced to 165 months of imprisonment. He was also ordered to forfeit $8,767 in cash that was seized from his residence at the time of his arrest, a 2007 Mercedes E550 and a 2006 Harley Davidson XLH1200.
On May 14, 2014, “Little’s” son, ANGEL ROSA, a.k.a. “Bebo,” 19, of New Britain, was sentenced to 66 months of imprisonment, followed by five years of supervised release. “Bebo,” a central figure in the drug trafficking organization, sold heroin and cocaine in the Zion Street area nearly every day during the course of the investigation. “Bebo” also was ordered to forfeit a 2005 Infinity G35 and approximately $811 is cash that was seized from his person on April 11, 2013, when he was arrested.
Also on May 14, 2014, JARED PENNELL, 31, of Uncasville, was sentenced to 46 months of imprisonment, followed by three years of supervised release. Pennell purchased significant quantities of heroin from other members of the conspiracy and then sold the drug to his own customers in southeastern Connecticut. Pennell’s criminal history includes convictions for robbery and assault.
This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Connecticut State Police, Hartford Police Department, East Hartford Police Department, Connecticut Department of Correction and Connecticut National Guard. The Connecticut State Police’s Emergency Services Unit, Hartford Police Department’s Emergency Response Team, Capital Region Emergency Response Team, Drug Enforcement Administration, Homeland Security Investigations and the New Britain, East Hartford, Wethersfield and Manchester Police Departments have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorneys Brian Leaming and Patrick Caruso.
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[email protected]Law Enforcement Officials Announce Results of Sex-offender Sweep in Wood and Wirt CountiesRead the Press Release
Charleston, W.Va. – U.S. Attorney Booth Goodwin, U.S. Marshal John D. Foster and West Virginia State Police First Lieutenant Michael Baylous announced today that during a three-day law enforcement blitz aimed at verifying compliance of more than 252 registered sex offenders currently residing in Wirt and Wood counties, 57 offenders were found to be out of compliance.
The initiative, known as Operation Black Diamond, is a multi-agency law enforcement effort targeting registered sex offenders to determine individual compliance with the Sex Offender Registration Notification Act, also known as SORNA. Led by the U.S. Marshal’s Cops United Felony Fugitive Enforcement Division (CUFFED), Operation Black Diamond targeted 252 registered sex offenders and found 195 to be in compliance. A total of 57 individuals were determined to be out of compliance within the Southern District of West Virginia during checks conducted on May 13-15. The operation revealed that eight sex offenders had absconded. Deputy U.S. Marshals, along with West Virginia State Troopers, will continue their investigation until those violators are found.
“We will continue to conduct these compliance sweeps, because the prosecution of sex offenders who violate federal registration requirements is one of my office’s top priorities,” said U.S. Attorney Goodwin. “And we will continue to bring to justice those offenders who are not in compliance.”
Operation Black Diamond was initiated by members of the West Virginia State Police, in cooperation with the U.S. Marshals Service CUFFED Division. The three-day law enforcement sweep covered Wirt and Wood counties.
“The U.S. Marshals Service remains committed to tracking down sex offenders who attempt to evade the law,” U.S. Marshal John Foster said.
In December 2013, Operation Lump of Coal found 54 sex offenders out of compliance when a compliance check was conducted in Mercer, McDowell, Monroe, Summers and Wyoming counties. In August 2013, a similar law enforcement sweep, dubbed Operation Coal Dust, was conducted of 209 registered offenders residing in Boone, Lincoln and Logan counties, which found 10 individuals out of compliance. Operation River Cities, in December 2012, netted 18 arrests of sex offenders found to be out of compliance in Cabell, Mingo and Wayne counties after nearly 300 checks were conducted.
As a result of the four regional operations, a combined total of more than 1,250 offender compliance checks have been conducted.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. SORNA provides a comprehensive set of minimum standards for sex offender registration and notification in the United States.
King County Man Sentenced to 20 Years in Prison for Prodcution of Child Pornography and Illegal Firearms PossessionRead the Press Release
A felon, who photographed his repeated sexual molestation of a 10-year-old girl, was sentenced today in U.S. District Court in Seattle to 20 years in prison, announced U.S. Attorney Jenny A. Durkan. STEVEN MAURICE WILLIAMS, 43, of Seattle, will serve the sentence for production of child pornography and illegal possession of a firearm, concurrently with a state court sentence for three counts ofchild rape. WILLIAMS will be sentenced in King County Superior Court on the rape charges in about three months. At sentencing U.S. District Judge Robert S. Lasnik said the “crimes are horrible and deserving of severe punishment.”
“This defendant violated a young child, shattering her trust and that of her family,” said U.S. Attorney Jenny A. Durkan. “This long prison sentence is needed to protect the public from someone who has repeatedly shown no respect for the law or the safety and well-being of others.”
According to records filed in the case, the horrific three year molestation of the young girl began when she was just 7-years-old. The abuse first came to light when WILLIAMS was moving out of the house he shared with the mother of his two sons. One of the boys grabbed a SD card to record a video game and discovered images of his father molesting the young girl. The boy and his mother recognized the child and alerted her mother. WILLIAMS had shared a home with the girl and her mother and had been the caretaker for the child while the mother was at work.
The police investigation revealed that WILLIAMS had 76 images of the girl being molested and possessed additional child pornography in a storage locker that was searched by law enforcement. WILLIAMS also illegally possessed two firearms. As a convicted felon with convictions for burglary, theft, possession of stolen property and domestic violence, WILLIAMS is prohibited from possessing firearms.
WILLIAMS will be on 15 years of supervised release following his release from prison. He will be required to register as a sex offender and will undergo sex offender treatment.
The case was investigated by the U.S. Secret Service and the Federal Way Police Department. The case was prosecuted by Assistant United States Attorney Roscoe Jones.
Kankakee Man to Serve 20 Years in Federal Prison for Crack Cocaine OffenseRead the Press Release
Urbana, Ill. -- U.S. District Judge Michael P. McCuskey yesterday sentenced David L. Crisp, Jr., of Kankakee, Ill., to 240 months in the federal Bureau of Prisons for possession with the intent to distribute crack cocaine. Crisp was also ordered to serve eight years of supervised release upon his release from prison.
Crisp, 35, faced a mandatory minimum sentence of 10 years to life in prison based on two prior felony drug convictions. In 1999, Crisp was convicted in Kankakee County Circuit Court for unlawful delivery of a controlled substance within 1000 feet of a church and was sentenced to six years in the Illinois Department of Corrections. In 2003, Crisp was sentenced to four years in the Illinois Department of Corrections after being convicted of manufacture/delivery of 1-15 grams of cocaine.
Crisp was indicted by a federal grand jury in September 2013, and pled guilty on Jan. 9, 2014, to knowingly possessing 28 grams or more of crack cocaine with the intent to distribute it.
Crisp was arrested by agents of the Kankakee Area Metropolitan Enforcement Group (KAMEG) on Aug. 23, 2013, after a search warrant was executed at Crisp’s residence in the 1100 block of S. East Avenue in Kankakee. KAMEG agents recovered 41.1 grams of crack cocaine which was packed and intended for further distribution.
The charges resulted from an investigation conducted by the Kankakee Area Metropolitan Enforcement Group (KAMEG) and the Illinois State Police, with assistance from the Kankakee County State’s Attorney's Office. The case was prosecuted by Assistant U.S. Attorney Ronda H. Coleman.
Kankakee Area Father, Son Sentenced for $1.7 Million Bank Fraud SchemeRead the Press Release
Urbana, Ill. – A Bourbonnais, Ill., businessman Gregory Yates, 54, and his son, Terrance Yates, 33, were sentenced this morning for defrauding a federal business loan program of $1.7 million. U.S. District Judge Michael P. McCuskey ordered Gregory Yates to serve 12 months and one day in prison, followed by three years of supervised release; Terrance Yates was sentenced to one day in prison, followed by three years supervised release, with the first 12 months of supervised release to be served as home detention. Both were ordered to pay restitution in the amount of $1,387,816. Gregory Yates is to report to the federal Bureau of Prisons on Jul. 23, 2014. The government recommended to the court that each defendant serve 33 months in prison
On Feb. 10, 2014, Gregory and Terrance Yates each pled guilty to one count of conspiracy to commit bank fraud. In addition, Terrance Yates pled guilty to one count of money laundering.
At the time of the fraud, from April 2009 to July 2011, Gregory Yates was the president and chief executive officer of Quality Concepts, LLC; his son, Terrance, was the chief financial officer. Gregory Yates also owned and operated QC Manufacturing, LLC, and Champion Development, LLC, a construction company. Terrance was the chief financial officer and vice-president of operations for Champion Development, LLC. For each company, the principal office location was 1475 Harvard Drive, Kankakee, Ill.
In court proceedings and according to court documents, in May 2009, Gregory Yates, doing business as QC Manufacturing, LLC, purchased a manufacturing facility, tools and equipment, owned by Casey Tool and Machine, at 400 West Delaware Ave., Casey, Ill. At the time of the purchase, Casey Tool and Machine was in bankruptcy. Prior to its bankruptcy, Casey Tool and Machine was owned by Gregory Yates’ brother, Jim Yates.
In November 2009, QC Manufacturing, LLC, applied for and was subsequently awarded a Business and Industry Loan through the U.S. Department of Agriculture, Office of Rural Development. Although the $5.95 million loan was processed through Country Bank of Aledo, the loan guarantee was funded by the USDA using money allocated through the American Recovery and Reinvestment Act.
Gregory Yates admitted that, as part of the loan application, he submitted a letter stating that he intended to use the $5.95 million USDA loan to purchase a vacant manufacturing facility in Casey, Ill., tools and equipment to operate within the facility, and start up working capital for initial cash and inventory.
The letter represented that the facility would be used to produce and distribute precision lighting equipment and he estimated that more than 200 new jobs would be created. The loan application included a budget of $1.7 million to perform construction and improvements on the Casey facility.
Although the bank approved the loan, including the renovation budget, QC Manufacturing, LLC was required to complete the work for which it was requesting payment before Country Bank would fund any portion of the $1.7 million allocation. Gregory and Terrance Yates admitted that they agreed with each other to use only their own construction company, Champion Development, and no subcontractors, to perform the construction and improvements. By listing only their own construction company, the Yateses admitted they were able to falsely and substantially inflate the value of the labor or materials furnished by Champion Development, thereby drawing money from the USDA loan for work that was either never performed or was of lesser value than claimed on the contractor’s sworn statements provided to the bank. For example, Gregory Yates admitted he told employees of Champion Development to ‘simply spruce up’ the Casey facility to lower the cost of improvements.
Terrance, in agreement with Gregory Yates, admitted that fraudulent sworn statements and affidavits, signed by Terrance, were submitted to the bank claiming that Champion Development had performed work and supplied materials. Based on these fraudulent statements, the bank disbursed $1.7 million to QC Manufacturing. Of the $1.7 million disbursed, more than $1.3 million was transferred from QC Manufacturing to Champion Development and then transferred to other accounts.
The charges were investigated by Internal Revenue Service Criminal Investigation; the U.S. Department of Agriculture Office of Inspector General; the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General; and the FBI. The case was prosecuted by Assistant U.S. Attorney Eugene L. Miller.
Grosse Ile BusinessmanSentenced in Mortgage Fraud CaseRead the Press Release
A Grosse Ile businessman was sentenced today after being convicted at trial of Conspiracy to Commit Wire Fraud and Wire Fraud, announced United States Attorney Barbara L. McQuade.
U.S. Attorney McQuade was joined in the announcement by Paul M. Abbate, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation.
Sentenced was Richard Dean Woolsey, 42, of Grosse Ile Township, Michigan. Woolsey was sentenced to 90 months by U.S. District Judge Avern Cohn. Judge Cohn also ordered Woolsey to serve 3 years supervised release after his custodial sentence. A separate hearing on restitution will be held within 90 days. Sentencing for co-defendant Ryan Vinco is scheduled for June 5, 2014
The evidence at trial showed that from 2006 to 2008, Richard Dean Woolsey conspired to defraud and defrauded mortgage lenders in numerous mortgage loan transactions in the States of Michigan and Tennessee. In executing the conspiracy and scheme to defraud Woolsey used ReMax Experts a real estate company and The Valuation Group, an appraisal company both owned by him. Woolsey orchestrated and helped to orchestrate millions of dollars of fraudulent mortgage transactions by coordinating and directing the activities of bank employees, buyers, appraisers and closing agents. In doing so he disguised the source of down payments, provided false and inflated appraisals for properties and provided false income information for buyers in order to bolster their creditworthiness and apparent ability to qualify for mortgage loans. Judge Cohn found that losses caused by Woolsey’s fraud were greater than $2.5 million and less than $7 million.
"Mortgage fraud harms real estate markets and property values and also undermines the ability of lending institutions to protect themselves from debilitating losses," McQuade said.
Special Agent in Charge Abbate stated, “As reflected in the investigation of Mr. Woolsey’s criminal activity and his sentence today, the FBI takes mortgage fraud very seriously. These crimes, particularly those as egregious as Mr. Woolsey’s, not only negatively impact real estate markets, banks, and the financial industry, but hurt our entire community. The FBI will continue to aggressively investigate these crimes.”
Genovese Crime Family Associate Sentenced in Manhattan Federal Court for Role in Commercial Carting SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that CARMINE FRANCO was sentenced yesterday in Manhattan federal court in connection with his role in a scheme to exert control over the commercial waste-hauling industry in the greater New York City metropolitan area and in parts of New Jersey. FRANCO previously pled guilty in November 2013 to participation in a racketeering conspiracy, conspiracy to commit mail and wire fraud, and conspiracy to transport stolen cardboard across state lines. FRANCO was sentenced to one year and one day in prison by U.S. District Judge P. Kevin Castel.
According to the Indictment, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including today’s sentencing:
FRANCO, who is an associate of the Genovese Crime Family, participated in a criminal enterprise, along with other members and associates of three different Organized Crime Families of La Cosa Nostra (“LCN”) – the Genovese, Gambino, and Luchese Crime Families – to control various waste disposal businesses in the New York City metropolitan area and multiple counties in New Jersey. Members of the enterprise engaged in various crimes in furtherance of the enterprise’s aims, including extortion, loansharking, mail and wire fraud, and stolen property offenses. As part of his guilty plea, FRANCO, who had been barred by the State of New Jersey from participating in the waste hauling industry, acknowledged his membership in the criminal enterprise and his agreement with others to undertake at least two racketeering acts in furtherance of the enterprise. Specifically, FRANCO acknowledged that he committed mail and wire fraud by overbilling customers of a waste transfer station that he controlled in West Nyack, New York. He also acknowledged that he and his associates transported large volumes of stolen cardboard across state lines.
In addition to the prison term, FRANCO, 78, of Ramsey, New Jersey, was also sentenced to two years of supervised release, and ordered to pay a $5,000 fine and restitution in the amount of $5,600, and to forfeit $2.5 million to the United States.
FRANCO was charged as part of a large investigation led by the United States Attorney’s Office for the Southern District of New York, the Federal Bureau of Investigation (“FBI”), and the Westchester County Police Department. To date, 32 defendants have been charged with participating in the scheme to exert control over the commercial waste-hauling industry. Twenty-one of these defendants have been convicted for their roles in this scheme.
Mr. Bharara praised the investigative work of the FBI and the Westchester County Police Department.
The prosecution of this case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Brian R. Blais and Patrick Egan are in charge of the prosecution. Assistant United States Attorney Micah Smith of the Office’s Money Laundering and Asset Forfeiture Unit is responsible for the forfeiture aspects of the case.
Former President of University of Tennessee Foundation Sentenced to Serve 121 Months in Prison for Receiving and Possessing Child PornographyRead the Press Release
KNOXVILLE, Tenn. - Bruce Owen Downsbrough, 61, of Knoxville, Tennessee, was sentenced to serve 121 months in federal prison by the Honorable Thomas A. Varlan, Chief U. S. District Judge for the Eastern District of Tennessee. Downsbrough pleaded guilty in October 2013 to a federal indictment charging him with receiving and possessing child pornography.
In addition to the prison sentence, Downsbrough was ordered to pay $25,000 in restitution to victims and a $75,000 fine. He was also placed on supervised release for a period of ten years and for the rest of his life will be required to register as a sex offender wherever he lives, works, or attends school.
Downsbrough ordered child pornography to be sent to him via United States mail. A federal search warrant was obtained for Downsbrough’s home and his computer was seized and searched for child pornography. Examination of the seized computer revealed that, in addition to ordering child pornography through the mail, he had been accessing and downloading child pornography via the internet.
U. S. Attorney William C. Killian emphasized the importance of the prosecution of child pornographers. “Those who seek out and collect child pornography fuel the further exploitation of children. This sentence sends a strong message to those who would prey upon the youngest and most vulnerable members of society that trafficking in images of the exploitation of children will not be tolerated,” said Killian.
Agencies involved in this investigation included Knoxville Police Department - Internet Crimes Against Children Unit and U. S. Postal Service, Office of Inspector General. Assistant U.S. Attorney Matthew Morris represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Church Youth Director Sentenced to 30 Years for Child Exploitation and PornographyRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Blue Springs, Mo., man who sexually abused several minor victims was sentenced in federal court today for transporting a minor across state lines for illegal sexual activity and for receiving child pornography over the Internet.
Dennis W. Myers, 53, of Blue Springs, was sentenced by U.S. Chief District Judge Greg Kays to 30 years in federal prison without parole, which is the statutory maximum sentence.
Myers formerly served as a youth director at Christ United Methodist Church in Independence, Mo., and at First United Methodist Church in Springdale, Ark. On Aug. 5, 2013, Myers pleaded guilty to engaging in illicit sexual activity with a 16-year-old victim, identified as Jane Doe #1, after transporting her across state lines, and to receiving child pornography over the Internet.
Myers met Jane Doe #1 when he was youth director at the First United Methodist Church in Springdale. According to court documents, Myers began engaging in sexual activity with the victim when she was 14-15 years old and in the eighth grade. Myers left his employment with the church and started a DJ business in approximately 1993-94, when Jane Doe #1 was 15 years old. He was training Jane Doe #1 to assist him in that business. From November 1994 to November 1995, when Jane Doe #1 was approximately 16 years old, Myers transported her from Arkansas to the Kansas City, Mo., area, where they engaged in sexual intercourse. Court documents report that towards the end of their relationship, as Jane Doe #1 attempted to break away from him, Myers provided her with an excessive amount of wine and raped her as she cried and tried to fight him off.
Years later Myers moved to Blue Springs. Following complaints by two adolescents of inappropriate sexual activity, law enforcement officers searched his home on Sept. 15, 2011, and seized his computer. Forensic examiners found a video of child pornography that had been downloaded from the Internet and viewed on the computer.
Myers was sentenced today as a serial abuser for engaging in a pattern of activity involving the sexual abuse or exploitation of six additional minors, including the victims of a case filed in the Circuit Court of Jackson County, Mo. In relation to the Jackson County case, Myers digitally penetrated a 12-year-old girl and fondled another 12-year-old girl, both of which occurred in his home. According to court documents, Myers has perpetrated other instances of sexual abuse or exploitation of minors, including:
- His fondling of a fourth victim, 13 years of age, on an overnight church lock-in;
- His fondling of a fifth victim, 16-17 years of age, on a church camping trip;
- His fondling of a sixth victim, 15-16 years of age, at his apartment;
- His production in his Blue Springs home of a pornographic image of a prepubescent girl, a seventh victim.
In 1994 a victim in Independence wrote to the church in Arkansas to disclose Myers’ activities while he had been the youth director in Independence. Myers, who was working at the Arkansas church at the time, intercepted the mail. According to court documents, Myers then wrote to the victim and tried to persuade her not to disclose, telling her, among other things, that it would bring scandal to the church.
The government also offered evidence at today’s sentencing hearing of other instances of inappropriate and suspicious, although not criminal, interactions between Myers and neighbor girls.
Under the terms of his plea agreement, Myers must also plead guilty to the charges of statutory sodomy in the first degree and attempted enticement of a child in a pending case in the Circuit Court of Jackson County. The Jackson County Prosecutor’s Office will recommend a sentence of 10 years on each of the two state counts to run concurrently with each other and with the federal sentence.
This case was prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the Blue Springs, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Five New England Residents Charged with Sex TraffickingRead the Press Release
BOSTON – Five individuals were charged in an indictment unsealed today for operating a multistate sex trafficking ring centered in Massachusetts and Maine involving minors and adult women.
Raymond Jeffries, a/k/a Skame Dollarz, Skame, Frenchy, 26, of Boston and Portland, Maine; Corey Norris, a/k/a Case, 23, of Boston; Jacqueline Lungelow, a/k/a Baby J., 26, of Boston; Kairis Sanchez, a/k/a Lola, 19, of Boston; and John Kanda, a/k/a J., 21, of Portland, Maine, were charged in a 17-count superseding indictment unsealed today involving the trafficking of six victims, three of whom were under the age of 18, for the purposes of prostitution in Massachusetts, Maine, Rhode Island, Connecticut, New Jersey, Maryland, Nevada, and California.
The indictment alleges that, at various times from 2006 through January 2014, different combinations of these defendants trafficked the victims for prostitution by force, fraud or coercion and, in the cases of the minor girls, knowing or in reckless disregard that they were under the age of 18.
Norris was previously charged in U.S. District Court in Massachusetts for sex trafficking of a minor from Massachusetts to Rhode Island, and this indictment expands on those charges.
If convicted on the charges of sex trafficking by force, fraud or coercion, the defendant faces a minimum sentence of 15 years in prison and a maximum of a lifetime, five years of supervised release, a $250,000 fine, and restitution. If convicted on sex trafficking of a minor, the defendant faces a minimum sentence of 10 years in prison and a maximum of a lifetime, five years of supervised release, a $250,000 fine, and restitution.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; Shawn Meehan, Resident Agent in Charge of the HSI Portland Office; Boston Police Commissioner William Evans; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Aaron Steps, Supervisory Senior Resident Agent in Charge of the Maine Office, made the announcement today. The U.S. Attorney’s Office wishes to thank the Suffolk County District Attorney’s Office, Cumberland County (Maine) District Attorney’s Office, United States Attorney’s Office for the District of Maine, Massachusetts State Police, Portland (Maine) Police Department, Old Town (Maine) Police Department, Braintree Police Department, South Portland (Maine) Police Department, Maine Drug Enforcement Agency, and the Cumberland County Sheriff’s Office. This case is being prosecuted by Assistant United States Attorneys Amy Harman Burkart and Cory S. Flashner of Ortiz’s Civil Rights Enforcement Team and Special Assistant United States Attorney and Suffolk County Assistant District Attorney David S. Bradley.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Felon in Possession Charges Filed Against James Nathaniel Watts Following Arrest in CairoRead the Press Release
Follow @SDILNewsJames Nathaniel Watts, age 30, of Cairo, Ill., was charged by criminal complaint with Felon in Possession of a Firearm, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The affidavit in support of the complaint indicates that Watts was arrested on May 15, 2014, on a railroad train trestle in Cairo, Illinois, after a high speed chase with law enforcement. Watts was driving a vehicle which belonged to an employee of the First National Bank, which had been robbed earlier in the day. During the robbery, two employees were killed and one was critically wounded. Those offenses remain under investigation.
The offense is punishable by a term of imprisonment of up to ten years, a fine of $250,000, or both, and up to 3 years supervised release.
Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The case is assigned to Assistant United States Attorney James M. Cutchin for prosecution.
Federal Jury Finds Shiprock Man Guilty on Three Second Degree Murder ChargesRead the Press Release
ALBUQUERQUE – A federal jury returned a verdict today finding Tillman Naskia Begaye, 33, guilty on three counts of second degree murder after a five day trial, announced Acting U.S. Attorney Damon P. Martinez, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, and Director John Billison of the Navajo Nation Division of Public Safety.
Begaye, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was arrested on July 22, 2013, on a criminal complaint charging three counts of second degree murder, and was indicted on the same charges on Aug. 7, 2013. According to the indictment, Begaye killed a Navajo woman and two of her adult children on July 14, 2013, while driving under the influence of alcohol on the Navajo Indian Reservation.
Trial began on May 12, 2014, and concluded today when the jury returned a verdict of guilty on each of the three counts of the indictment.
The evidence at trial established that on July 14, 2013, officers of the Navajo Nation Division of Public Safety were called to the scene of a two vehicle crash on U.S. Highway 491 south of Newcomb, N.M., near Sheep Springs, N.M. The officers’ investigation revealed that Begaye caused the crash by driving his full-sized pickup truck northbound on the southbound lane of the highway and crashing head on into a vehicle occupied by the three victims who died at the scene.
The investigation revealed that Begaye was intoxicated at the time of the crash. Begaye’s blood alcohol content (BAC) level was .18 when his blood was drawn when he was transported to a nearby hospital an hour after the crash. The investigation also revealed that Begaye was driving northbound on a southbound lane of a four-lane highway at a speed of 75 per hour in a 65 mile per hour zone prior to impact.
Through a stipulation, the jury learned that Begaye had two prior DWI convictions. According to the stipulation, Begaye was convicted on a driving under the influence charge in Oct. 2012, in the State of Colorado. Begaye also was convicted on an aggravated driving while intoxicated charge in Jan. 2001, in the Municipal Court in the City of Farmington, N.M.
The jury deliberated approximately an hour and a half before returning its guilty verdict.
Begaye has been in federal custody since his arrest. He remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Begaye faces a prison term of any term of years to life in prison on each of the three second degree murder charges.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety and the Farmington office of the FBI and is being prosecuted by Assistant U.S. Attorneys Presiliano A. Torrez and Louis E. Valencia.
Federal Jury Finds Bridgeport Man with Violent Criminal History Guilty of Illegal Gun PossessionRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal jury in Hartford has found JOSE ROQUE, 47, of Bridgeport, guilty of possession of a firearm by a previously convicted felon. The jury returned the verdict this morning after a two-day trial before U.S. District Judge Vanessa L. Bryant.
According to the evidence presented during the trial, on September 1, 2010, Bridgeport Police responded to a residential burglary call. The complainant described the burglar and the vehicle he drove from the scene. Later that day, officers spotted ROQUE driving the car and attempted to stop him. After a chase, which involved multiple police cars, ROQUE was stopped.
ROQUE refused to get out of the vehicle. As one officer attempted to remove ROQUE, a second officer approached from the other side of the car and saw a brown gun handle tucked along the right side of the driver’s seat. After ROQUE made a movement toward the gun, the second officer kicked in the passenger window of the vehicle. ROQUE was taken out of the vehicle and tasered when he pushed back at officers.
A search of the vehicle revealed a .38 caliber Smith & Wesson SPL Model #64-2 handgun at the side of the driver’s seat.ROQUE’s criminal history includes several state felony convictions, including convictions for murder, robbery and burglary in 1984; assault and burglary in 1991; escape in 1992; burglary in 1993, and assault, attempted assault of an officer, attempted escape, attempted riot in an institution, and conspiracy to commit assault in 1994. ROQUE was sentenced to 15 years of incarceration for the 1994 convictions.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Judge Bryant has scheduled sentencing for August 27, 2014.
ROQUE is subject to the Armed Career Criminal Act, a federal law imposing severe penalties for firearm or ammunition possession by persons who have been convicted of at least three violent felonies or serious drug offenses. As an Armed Career Criminal, ROQUE faces a minimum term of imprisonment of 15 years and a maximum term of imprisonment of life.
This matter was investigated by the Bridgeport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale and Special Assistant U.S. Attorney Charles Rombeau.
PUBLIC AFFAIRS CONTACT:
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Tom Carson
(203) 821-3722
[email protected]Federal Inmate Sentenced to Almost Two Years in Prison for Walking Away from the Hinzman CenterRead the Press Release
A man serving out the last few months of a sentence on federal drug charges was sent back to prison for twenty-one months when he walked away from the Gerald R. Hinzman re-entry center after testing positive for alcohol.
Brandon Devos, age 30, from Cedar Rapids, Iowa, received the prison term after a February 28, 2014, guilty plea to escape.
In a plea agreement, Devos admitted he was convicted on December 7, 2006, in the United States District Court for the Northern District of Iowa, of conspiracy to distribute heroin. Devos was sentenced to 104 months in federal prison. Toward the end of his prison sentence, Devos was transferred to the Hinzman Center, a residential re-entry center in Cedar Rapids, to help him transition back into society. He was permitted to leave the center to find employment. On December 14, 2013, Devos tested positive for alcohol when he returned to the center that day. While the staff waited to perform a second breathalizer test, Devos walked away from the center without permission. United States Marshals captured Devos two days later hiding at a residence in Iowa City.
Devos was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Devos was sentenced to twenty-one months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Devos is being held in the United States Marshal’s custody until he can be transported to a federal prison where he will finish serving out his prior prison sentence before starting his new prison sentence.
The case was prosecuted by Assistant United States Attorney C.J. Williams and investigated by United States Marshal’s Service.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-cr-4-LRR.
Erath Woman Sentenced to 12 Months in Prison for Wire FraudRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Hue Bui, 27, of Erath, La., was sentenced by U.S. District Judge Elizabeth Foote, to 12 months in prison and two years of supervised release for one count of wire fraud involving theft from Walk-On’s Bistreaux and Bar in Lafayette. Bui was also ordered to pay $30,222.12 in restitution to Walk-On’s.
According to evidence presented at the guilty plea on January 22, 2014, while employed as a server at Walk-On’s, Bui stole approximately $30,222 from February 2012 to August 2012. She devised a scheme using $25 pre-paid American Express, VISA, and Master Card gift cards that she bought herself. During her shift, she would create a fake food or beverage order costing approximately $25, pay for the fake order with the gift card, write in a gratuity amount on the bill, and collect the tips at the end of her shift. When the credit card companies realized the $25 limit was exceeded, they charged the transactions back to Walk-On’s.
The FBI conducted the investigation. Assistant U.S. Attorney Kelly P. Uebinger prosecuted the case.Eight Indicted on Federal Racketeering ChargesRead the Press Release
CHARLOTTESVILLE, VIRGINIA – A Federal Grand Jury sitting in the United States District Court for the Western District of Virginia in Charlottesville has returned an indictment charging eight individuals with federal racketeering, narcotics, robbery, kidnapping and murder charges related to a string of violent episodes across Central Virginia that included the alleged kidnapping and murder of Waynesboro Reserve Police Captain Kevin Quick. A ninth defendant has been charged federally with obstruction of justice.
In an indictment returned under seal on Wednesday, May 14, 2014 and unsealed this morning following the defendants’ initial court appearances, the grand jury has charged the following:
Daniel Lamont Mathis, 18, of Charlottesville, Va., Shantai Monique Shelton, 24, of Charlottesville, Va., Mersadies Lachelle Shelton, 20, of Charlottesville, Va., Travis Leon Bell, 23, of Front Royal, Va., Anthony Leon White, 22, of Louisa, Va., Gert Arthur Lee Wright, III, 23, of Manassas, Va., Anthony Darnell Stokes, 32, of Manassas, Va., Devante O’Brian Bell, 20, of Louisa, Va., and Leslie Hope Casterlow, 50, of Manassas, Va.
According to the indictment, those charged today are either members or associates of the “99 Goonz Syndikate” set of the Bloods criminal street gang. The indictment alleges that members of this gang participated in a pattern of racketeering from December 2012-April 2014 that included violent armed robberies, the kidnapping and murder of Kevin Quick, the sale of narcotics and the obstruction of justice after that incident.
Mathis, Shantai Shelton, Mersadies Shelton, Travis Bell, Anthony White and Devante Bell are charged with conducting several armed robberies of both commercial businesses and individuals in Louisa, Charlottesville, Albemarle County, Fluvanna County and Gordonsville. It is alleged that this series of robberies were conducted using firearms and were conducted to financially benefit the collective group.
Anthony Stokes, Gert Wright and Leslie Casterlow are charged with obstructing justice by assisting other members of the conspiracy destroy evidence and elude apprehension following the kidnapping and murder of Kevin Quick.
The investigation of the case was conducted by the Virginia State Police, the Federal Bureau of Investigation, the Albemarle County Police Department, the Charlottesville City Police Department, the Louisa County Commonwealth’s Attorney’s Office, the Waynesboro Police Department, the Henrico County Police Department, the Gordonsville Police Department, the Goochland County Commonwealth’s Attorney’s Office, the Fluvanna County Commonwealth’s Attorney’s Office and the Prince William County Police Department.
United States Attorney Timothy J. Heaphy, Assistant United States Attorney Ronald M. Huber and Special Assistant United States Attorney and Louisa County Commonwealth’s Attorney Russell E. McGuire will prosecute the case for the United States.
An indictment is only a charge and all defendants are entitled to a fair and speedy trial and are considered innocent until and if they are proven guilty.
District Man Sentenced to 75 Years in Prison for 2008 Shooting That Killed Two People-Targeted One Victim in Dispute; Other Was Innocent Bystander-Read the Press Release
WASHINGTON – Arvel Crawford, 23, of Washington, D.C., was sentenced today to 75 years in prison on first-degree murder, second-degree murder, and related weapons charges for the slayings of two people in 2008, U.S. Attorney Ronald C. Machen Jr. announced.
Crawford was found guilty by a jury in February 2014, following a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Jennifer Anderson.
At trial, the government’s evidence established that on Aug. 14, 2008, at about 10 a.m., Crawford snuck up on Johnquan Wright, 18, in front of a building in the unit block of K Street NW and shot him multiple times in the back. One of the shots went through Mr. Wright and hit and killed Nolan Cooper, 61, an innocent bystander. In the months preceding the murders, a dispute had arisen between two groups of young men in the Sursum Corda neighborhood, leading to multiple homicides. Crawford and Mr. Wright were on opposite sides of this dispute.
In a separate case, Crawford is serving an 18-year prison sentence for killing his father on Dec. 1, 2009 in a robbery conspiracy gone awry. Today’s sentence runs consecutively to the prison time in that case.
In announcing the sentence, U.S. Attorney Machen commended the work of the detectives, officers, and evidence technicians who investigated the case for the Metropolitan Police Department. He also expressed appreciation for the efforts of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Meridith McGarrity and Kwasi Fields; Victim/Witness Advocate Tamara Ince; Intelligence Specialist Zachary McMenamin, and Litigation Technology Specialists Anisha Bhatia and Paul Howell.
Finally, he acknowledged the work of Assistant U.S. Attorney Laura Bach, who investigated the case, and Assistant U.S. Attorneys Magdalena Acevedo and Glenn Kirschner, who prosecuted the case at trial.
14-113District Man Sentenced to 73 Years in Prison for Killing A Man During 2009 Kidnapping and RobberyTwo Co-Defendants Earlier Sentenced, One to Life in Prison, One to 90 YearsRead the Press Release
WASHINGTON – Merle Watson, Jr., 57, of Washington, D.C., was sentenced today to a 73-year prison term on charges stemming from the 2009 killing of a man during a kidnapping and robbery, U.S. Attorney Ronald C. Machen Jr. announced.
Watson and co-defendants Keith Logan and Paul Ashby were found guilty by a jury in August 2013 of first-degree murder while armed, with aggravating circumstances, conspiracy, kidnapping while armed, armed robbery, and weapons offenses. Logan also was found guilty of assault with intent to kill while armed, aggravated assault while armed, and mayhem while armed, for shooting a potential witness on the night of the murder. The verdicts followed several weeks of trial in the Superior Court of the District of Columbia.
The Honorable Herbert B. Dixon, Jr. sentenced Watson today. Logan and Ashby, also of Washington, D.C., were sentenced in April 2014 by Judge Dixon. Logan, 52, was sentenced to life in prison with no possibility of release, and Ashby, 51, to a 90-year prison term.
According to the government’s evidence, Watson, Logan, and Ashby conspired to kidnap and rob Carnell Bolden, 36. They lured Mr. Bolden into Logan’s residence in the unit block of W Street NW during the early evening hours of Dec. 30, 2009. After beating him unconscious and tying him up, the defendants then went to get Mr. Bolden’s car, which was parked on the block.
Watson, Logan, and Ashby then discovered that Mr. Bolden’s girlfriend was sitting in the car. Fearing she would be a witness against them because she might know where Mr. Bolden was going when he left the car, they then decided to kill both of them.
Ashby drove Mr. Bolden, tied up and unconscious, to the 3000 block of Park Drive SE, where he dragged him into a wooded area adjacent to that block. He then shot Mr. Bolden twice at close range with a .38 or .357-caliber handgun, killing him.
While Ashby was on the way to Southeast Washington with Mr. Bolden, Logan approached Mr. Bolden’s girlfriend as she sat in her car. He stood outside the driver’s window and shot her four times with a nine-millimeter handgun. She was rushed to Washington Hospital Center and survived the attack.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department (MPD), the District of Columbia Department of Forensic Sciences, and the FBI Laboratory in Quantico, Va.
He also thanked those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocates and Specialists Marcia Rinker, La June Thames, Katina Adams-Washington, and Michael Hailey; Paralegal Specialists Sandra Lane, Kendra Johnson, Kwasi Fields, Anthony Griffith, and Antoinette Sakamsa; Litigation Technology Specialists Paul Howell, William Henderson, and Anisha Bhatia; Law Clerks Lauren Sparks and Ryan Lipes, and Criminal Investigators Derek Starliper, Mark Crawford, Nelson Rhone, Chris Brophy, and Melissa Matthews. In addition, he acknowledged the work of Assistant U.S. Attorneys Alessio Evangelista, who led the grand jury investigation, and Reagan Taylor, who helped prepare the case for trial. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Michael C. Liebman and Erik Kenerson, who tried the case.
14-114District Man Sentenced to 15-Year Prison Term for Brazen Home Invasion in Southeast Washington-Second Assailant Was Fatally Shot by Victim-Read the Press Release
WASHINGTON - Jaren Holley, 23, of Washington, D.C., was sentenced today to a 15-year prison term for a brazen, armed home invasion he committed in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced. During the crime, Holley’s accomplice was fatally shot by one of the victims, who feared for his life.
Holley pled guilty in January 2014, in the Superior Court of the District of Columbia, to charges of first-degree burglary, aggravated assault, and a firearms offense. He was sentenced by the Honorable Ronna L. Beck. Upon completion of his prison term, Holley will be placed on five years of supervised release.
According to the government's evidence, on Sept. 19, 2012, at about 8:30 p.m., Holley and 21-year-old Joel Johnson armed themselves with firearms and participated in a home invasion in the 4200 block of First Street SE. The victim was returning to his apartment building from a grocery store. Holley and Johnson waited until the victim was closing the door to his residence. At that point, they rushed the door and pushed past him into the man’s third-floor apartment. A woman in the residence was cooking dinner when the assailants rushed in.
Holley assaulted the man by hitting him on the head with a firearm, while Johnson ran after the woman. She was able to escape into her room, and then managed to jump out the third-floor window to get away. She broke her ankle and several toes, and ran away in search of aid.
Meanwhile, the man struggled with Holley, and gained control of Holley’s firearm. After losing control of his gun, Holley repeatedly urged Johnson to shoot and kill the man. Johnson had his gun drawn, and the man, believing he was about to be shot, fired the gun he took from Holley twice. Johnson died on the scene from gunshot wounds. Holley then fled out the window and was able to leave the area without injury. Holley was arrested several days after the attack. During his flight, Holley left behind a hat which was found to contain his DNA.
In announcing the sentence, U.S. Attorney Machen praised those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Richard Cheatham, Anthony Griffith, and Antoinette Sakamsa. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Tejpal S. Chawla, George Pace and James Petkun.
14-115Dallas Man Indicted for Smuggling Hummingbirds from Mexico to USRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas — A 53-year-old Dallas man has been indicted on smuggling charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Carlos Delgado Rodriguez was indicted by a federal grand jury on May 14, 2014 and charged with smuggling dead hummingbirds from Mexico into the United States.
According to the indictment, from February 2013 through January 2014, Rodriguez is alleged to have unlawfully imported approximately 61 dead hummingbirds, of various varieties, into the United States for sale. The five-count indictment specifically alleges that the importation of dead hummingbirds violates the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), the Migratory Bird Treaty Act (MBTA), the Lacey Act, the federal smuggling law, and Texas State Law.
If convicted, Rodriguez faces up to 20 years in federal prison.
This case is being investigated by the U.S. Fish and Wildlife Service and prosecuted by Assistant U.S. Attorney Jim Noble.
It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
Convenience Store Robber Pleads GuiltyRead the Press Release
Committed 14 Convenience Store Robberies in Less Than 2 Months
Baltimore, Maryland – Omar Hance, age 33, of Baltimore, pleaded guilty today to a series of commercial robberies. Darrell Blackwell, age 27, of Columbia, Maryland pleaded guilty on May 1, 2014, to being the get-away driver in two of the robberies.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; Baltimore Police Commissioner Anthony W. Batts; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to Hance’s plea agreement, between December 23, 2012 and February 7, 2013, Hance and a co-conspirator, Willie Vinson, robbed 14 convenience stores. In each robbery, Hance or Vinson used what appeared to be a black handgun, but was later determined to be a BB gun, to commit the robbery, taking money and store products by the use or threatened use of force against employees and customers of the store.
For example, on February 7, 2013, Darrell Blackwell drove Hance and Vinson to a 7-Eleven on West 33rd Street in Baltimore. Blackwell parked a short distance away and remained in the vehicle while Hance and Vinson, wearing masks, went into the store. Hance pointed what appeared to be a black semi-automatic handgun at the cashier and demanded money. The cashier turned over $200 in cash and $300 worth of cigarettes. Approximately five minutes later, after Blackwell had driven Hance and Vinson to the Royal Farms store on West 41st Street in Baltimore, they entered the store, while Blackwell again remained in the vehicle. Hance and Vinson announced the robbery and the customers left the store. Hance ordered the store employee to open the cash register, pulled out the black handgun and placed it on the counter, telling Vinson to take the gun. Hance then removed cartons of cigarettes, placing them in a large bag, while Vinson emptied the cash from the register. The two then left the store and sped away in the vehicle being driven by Blackwell.
Witnesses identified the vehicle, which was located by the police aviation unit. Other police units followed the vehicle and saw at least one item thrown from the vehicle. The vehicle eventually stopped at a garage at the Greater Baltimore Medical Center and Blackwell, Hance and Vinson ran away. All three were caught a short time later. Hance and Vinson were wearing the same clothing and fit the physical description of the robbers seen in the surveillance video from the stores. The gun was recovered from the road along the route of the robbers and was determined to be a BB gun.
Vinson previously pleaded guilty to his role in the robberies in Baltimore County Circuit Court and was sentenced to 10 years in prison.
Hance and the government have agreed that if the Court accepts the plea agreement he will be sentenced to 110 months in prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for Hance on September 2, 2014 at 2:30 p.m. and for Blackwell on August 26, 2014 at 11:00 a.m.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department, Baltimore County Police Department and the Baltimore City and Baltimore County State’s Attorney’s Offices for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Bonnie S. Greenberg and Scott A. Lemmon, who are prosecuting the case.
Chief Executive Officer of Superior Discount Coins Is Sentenced to 90 Months in Federal Prison for Defrauding Gold Coin Investors Out of over $2.4 MillionRead the Press Release
DENVER – James P. Burg, age 63, formerly of Fairplay, Colorado, was sentenced yesterday by U.S. District Court Judge John L. Kane to serve 90 months in federal prison for mail fraud and failing to file an income tax return, federal law enforcement authorities announced. Following his prison sentence, Burg was ordered to spend 3 years on supervised release. Judge Kane also ordered him to pay just under $2.5 million in restitution to the approximately 40 victims of his crime.
Burg was indicted by a federal grand jury in Denver on November 5, 2012. The indictment remained sealed until his arrest in California on November 29, 2012. He pled guilty on September 12, 2013. According to the indictment as well as the plea agreement, starting in October 2007, and continuing through January 2012, Burg devised a scheme to defraud customers that ordered coins from businesses known as Superior Discount Coins and Gold Run Investments. He obtained money from those customers by means of materially false and fraudulent pretenses, representations and promises. Burg took and received $2,464,099 from customers that ordered coins that he failed to deliver as promised.
As part of the scheme, Burg represented that he was the Chief Executive Officer of a company known as Superior Discount Coins (“SDC”) and that SDC was in the business of selling coins. Burg also conducted business using a company known as Gold Run Investments (“GRI”) and represented that GRI was in the business of selling coins. At times, Burg operated GRI using the alias “Tim Burke”. Burg advertised and solicited customers through radio advertisements and over the internet using websites he controlled, including; www.superiordiscountcoins.com, www.yourcoinbroker.com, and www.goldruninvestments.net.
Burg misrepresented and promised customers that if they ordered coins from SDC or GRI and paid him for those coins, he would deliver the coins to them or to accounts designated by them. He sent, and caused to be sent to customers that ordered coins from SDC or GRI invoices stating amounts of money owed for the coins and, in some cases, providing information about a bank account to which the customers should transfer their money to purchase the coins.
A substantial portion of the money Burg received from customers was not used to purchase their coins but instead was used for his own personal benefit. Burg refused to refund money to customers in several instances where the customers requested a return of their money after he failed to deliver coins as originally promised. To prevent the scheme’s detection, Burg sometimes filled customers’ orders for coins only after such customers threatened to take legal action or report him to law enforcement authorities. Burg used one customer’s payment for coins to refund funds to another customer.
For calendar years 2003 through 2009, Burg also failed to file income tax returns with the Internal Revenue Service as required by law. These returns were required to be filed with the IRS on April 15 following the subsequent above mentioned years. The investigation determined during the above years Burg generated a gross income of over $5.5 million for which he failed to pay $1,100,334 in income taxes on that income.
“The defendant’s sentence serves a number of purposes,” said U.S. Attorney John Walsh. “To those who consider implementing investment fraud, let this case be a warning that there are consequences, including prison sentences. To those who are asked to invest, do research before handing over your hard earned money. And to those who have lost money in these schemes, know we will do the best that we can to recover as much money as possible.”
“Investment schemes are motivated by greed and this sentence should serve as a reminder for those who prey on investors for their personal financial gain. These fraudsters will be caught and sent to prison,” said Stephen Boyd, Special Agent in Charge for IRS Criminal Investigation, Denver Field Office.
“The collaborative effort between the IRS CI, U.S. Postal Inspection Service, and the FBI is an example of the on-going working relationships federal investigative agencies have to combat violations of federal law,” said FBI Denver Special Agent in Charge Thomas P. Ravenelle. “This investigation highlights the leveraging of federal law enforcement resources to protect innocent investors and our economy from those who engage in these types of fraudulent schemes.”
“The sentence James Burg received reflects the public’s right to expect punishment for those who commit fraud in order to enrich themselves personally,” said Denver Division U.S. Postal Inspector In Charge Adam P. Behnen. “Postal Inspectors will continue to ensure the integrity of the U.S. Mail through these types of investigations and our valued partnerships with other law enforcement agencies.”
This case was investigated by special agents with IRS-Criminal Investigation, the Federal Bureau of Investigation (FBI), and the U.S. Postal Inspection Service.
The case was prosecuted by Assistant U.S. Attorney Tim Neff.
Career Criminal Gets Nearly 47 Years in Prison for Armed Bank RobberyRead the Press Release
BIRMINGHAM -- A federal judge this week sentenced a Birmingham man to nearly 47 years in prison for an armed bank robbery in Tarrant in October, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
MICHAEL SCOTT THOMAS, 40, of Birmingham, pleaded guilty in January to one count each of armed robbery, brandishing a firearm during a crime of violence, and being a felon in possession of a firearm. All the charges stemmed from the Oct. 14 robbery at Wells Fargo Bank on Pinson Street in Tarrant.
U.S. District Judge Karon O. Bowdre sentenced Thomas to 21 years and 10 months in prison on the armed robbery and felon in possession counts, to be followed by 25 years in prison for brandishing a gun during the robbery.
According to court records, Thomas entered the Tarrant bank and robbed it as follows: He walked to the teller counter, brandished a handgun, pulled a black bag from behind his waistband and demanded the teller put money in it. Thomas also ordered other tellers to put money in the bag. He left the bank with $26,516, got into a car and drove away. Tarrant Police stopped the car he was driving, arrested Thomas and recovered the stolen money and a loaded Smith and Wesson .40-caliber pistol.
Judge Bowdre sentenced Thomas as an armed career criminal. He has been convicted for five previous violent robberies, according to court records.
The FBI investigated the case, which Assistant U.S. Attorney Joseph P. Montminy prosecuted.
California Man Sentenced for Cash SmugglingRead the Press Release
GREENSBORO, N.C. –A California man was sentenced to 50 months in prison for bulk cash smuggling, announced United States Attorney Ripley Rand.
Adolfo Pulido, age 55, pled guilty on January 3, 2014, and was sentenced on May 13, 2014. Chief United States District Judge William L. Osteen, Jr., sentenced Pulido to a total of 50 months in federal prison, followed by three years of supervised release. A special assessment of $100 was also imposed.
Pulido traveled to Asheboro, North Carolina, with the intent to transport over $1.5 million in cash back to California and then to Mexico without reporting the movement of the cash across the Mexican border as required by federal law. Cash in the amount of $1,567,576.00 was seized from Pulido during the investigation.
The case was investigated by the Asheboro Police Department, Randolph County Sheriff’s Office, Buncombe County Sheriff’s Office, Henderson County Sheriff’s Office, U. S. Drug Enforcement Administration and the Internal Revenue Service. The case was prosecuted by Assistant United States Attorney Sandra Hairston.
Buffalo Man Sentenced on Drug ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Myron Johnson, 39, of Buffalo, N.Y., who was convicted of possession with intent to distribute cocaine, was sentenced to 51 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorneys George C. Burgasser and Timothy C. Lynch, who handled the case, stated that on November 16, 2011, Erie County Sheriff’s Department deputies executed a search warrant at the defendant’s Ruspin Avenue residence and his vehicle. During the search, deputies seized approximately 209 grams of crack cocaine, 762 grams of cocaine, $58,000 in United States currency and two firearms.
The sentencing is the culmination of an investigation on the part of the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard, and the Drug Enforcement Administration, under the direction of Jamie J. Hunt, Acting Special Agent in Charge, New York Field Division.Buffalo Man Sentenced for Bank FraudRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Avery Gill, 56, of Buffalo, N.Y., pleaded guilty before U.S. District Court Judge Richard J. Arcara, to bank fraud. The charge carries a mandatory 30 years sentence, a fine of $1,000,000 and a term of supervised release of five years.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that between September 2012 through March 2013, Gill and co-defendants Calvina Myles and David Johnson devised a scheme to defraud Capital One Bank. The defendants used the names and personal identification information of two individuals to apply for two Capital One credit cards in those names. The defendants then purchased merchandise and gift cards from retail stores using the credit cards. Gill also made ATM withdrawals using the credit card. As a result of this conduct, Capital One suffered a loss of $29,429.16. involving two fraudulently issued credit cards.
The plea was the culmination of an investigation on the part of the U.S. Postal Inspection Service, Boston Division currently under the direction of Acting Inspector in Charge, Shelly A. Binkowski.
Sentencing is scheduled for August 28, 2014, at 12:30 p.m. before Judge Arcara.
Bruno Acquitted of Honest Services Mail Fraud Involving BriberyRead the Press Release
ALBANY, NEW YORK – A federal jury in Albany found Joseph L. Bruno, the former New York State Senate Majority Leader, not guilty of honest-services mail fraud following a two week trial before the Honorable Gary L. Sharpe, Chief United States District Judge.
Today’s verdict follows a prior trial and two appeals. In December of 2009, a jury convicted Bruno of carrying out a scheme to defraud the State of New York and its citizens of the right to his honest services by soliciting private business from, and entering into financial relationships with, persons or entities who were pursuing interests before the New York State Legislature or other state agencies, and concealing and failing to disclose the existence and true nature of such financial relationships, and the resulting conflicts of interest, while taking discretionary official actions benefitting parties with whom he had those relationships. Then, in 2010, the United States Supreme Court decided United States v. Skilling, holding that the honest services statute criminalizes only fraudulent schemes involving bribes or kickbacks.
On November 16, 2011, the United States Court of Appeals for the Second Circuit issued an opinion vacating Bruno’s conviction and authorizing a retrial, as requested by the United States. The Court of Appeals noted that the jury had been instructed pursuant to the law in effect at the time of the trial, which had not required bribery or kickbacks to constitute honest services fraud, but the subsequent Skilling decision had changed the law. In determining that a retrial was proper, the Court of Appeals reviewed the case against the elements of honest services fraud as altered by Skilling and held that the evidence presented at trial was sufficient for a reasonable jury to find that Bruno engaged in a quid pro quo bribery scheme under the standard announced in Skilling.
On May 3, 2013, a federal grand jury returned a superseding indictment, and Bruno filed a motion to dismiss that indictment on double jeopardy grounds. Chief Judge Sharpe denied the motion, and Bruno filed an interlocutory appeal denied by the Second Circuit on August 6, 2013.
United States Attorney Hartunian said, “Although this was not the outcome we expected based on the evidence presented, we believe that justice is served when a case is fully and fairly adjudicated before an impartial, attentive jury who listened to facts that were presented and tested by talented lawyers on both sides of the issue; that is what happened here, and we accept the jury’s verdict. We bring cases based on the facts and the law, not popularity or other good works, and we do not shy away from difficult cases, especially those involving the conduct of public officials who intertwine personal business and the public trust. No less than the Court of Appeals for the Second Circuit examined this case and found that there was sufficient evidence of a quid pro quo bribery scheme for a reasonable jury to convict Mr. Bruno on these counts. As the history of this case demonstrates, whether Mr. Bruno’s conduct constituted a federal crime needed to be decided by a jury.”
The investigation which led to this indictment was conducted by the Albany Division of the Federal Bureau of Investigation. The United States was represented in this prosecution by Assistant United States Attorneys Elizabeth C. Coombe and William C. Pericak.
Brownsville Man Pleads Guilty to Money Laundering ConspiracyRead the Press Release
BROWNSVILLE, Texas – Oscar J. Aguilar, 37, a Mexican citizen legally residing in Brownsville, has entered a guilty plea to conspiring to commit international money laundering, announced United States Attorney Kenneth Magidson along with Janice Ayala, special agent in charge of Homeland Security Investigations (HSI) in San Antonio.
Aguilar has admitted to recruiting nine others, some of whom were family members, to open bank accounts at Bank of America in Brownsville. Later, co-conspirators in Florida would deposit money from narcotics sales into the accounts. Aguilar’s recruits withdrew the money in amounts under the $10,000 reporting requirement and would give that money to Aguilar or other co-conspirators. The recruits were paid for moving the money through their bank accounts.
After Aguilar received the money, he facilitated its crossing from Brownsville to Matamoros, Mexico, where it was delivered to the Gulf Cartel.
From September 2008 through November 2012, the conspirators moved approximately $1,893,170 through nine bank accounts, with nearly $1.5 million from September 2011 through November 2012 alone.
“HSI Special Agents often investigate complex financial schemes in order to disrupt and dismantle the ongoing operations of transnational criminal organization,” said Ayala. “These investigations deprive the organizations from enjoying the benefits of these illicit proceeds, and prevent them from furthering the efforts of the ongoing criminal enterprise. We will continue to aggressively investigate fraudulent financial schemes that put in jeopardy the integrity of our financial system.”
Nine others have been convicted in relation to this case. With the exception of Francisco Jesus Arambul-Cortez, who also pleaded to conspiracy to commit International money laundering, the eight others entered guilty pleas to operating an unlicensed money transmitting business.
Aguilar entered his plea today before U.S. Magistrate Judge Ronald G. Morgan. He will remain in custody pending his sentencing hearing, set for Aug. 18, 2014, before U.S. District Judge Andrew S. Hanen. At that time, he faces up to 20 years in prison and a possible fine of $500,000.
This case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorneys Karen Betancourt and Joseph Leonard.
Bridgeport Grocery Store Operators Charged with Food Stamp FraudRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that KHALID ABOUTAYEB, 45, of Bridgeport, and his sister, JAMILA ABOUTAYEB, 54, of Fairfield, were arrested yesterday on federal food stamp fraud charges.
On May 14, 2014, a grand jury in New Haven returned separate indictments charging KHALID and JAMILA ABOUTAYEB with engaging in food stamp fraud at the M&J Deli Market, a grocery and convenience store they operated at 988 State Street in Bridgeport. Following their arrests, the ABOUTAYEBS appeared before U.S. Magistrate Judge Holly B. Fitzsimmons in Bridgeport. Both defendants are currently detained.
The federal Supplemental Nutrition and Assistance Program (“SNAP”) is administered by the USDA’s Food and Nutrition Service and utilizes federal tax dollars to subsidize low-income households to provide them with the opportunity to achieve a more nutritious diet by increasing their food-purchasing power. SNAP recipients purchase eligible food items at retail food stores through the use of an Electronic Benefits Transfer (EBT) card, and SNAP benefits may be accepted by authorized retailers only in exchange for eligible items. Items such as alcoholic beverages, cigarettes, paper goods and soaps are not eligible for purchase with Food Stamp benefits, and it is a violation of the rules and regulations governing the food stamp program to allow benefits to be used to purchase ineligible items. SNAP benefits may not lawfully be exchanged for cash under any circumstances. The program is designed so that the total amount of each purchase is electronically transferred to the retailer’s designated bank account.
The indictment against KHALID ABOUTABYEB alleges that he unlawfully exchanged customers’ food stamp benefits for ineligible items and cash at M&J Deli Market between approximately December 2011 and February 2013. The indictment against JAMILA ABOUTAYEB alleges that she unlawfully exchanged food stamp benefits for ineligible items and cash at the store between approximately June 2013 and March 2014.
According to statements made in court, the investigation has revealed that approximately $285,000 in illegal SNAP benefits were redeemed at the store.
If convicted, KHALID and JAMILA ABOUTAYEB face a maximum term of imprisonment of five years and a fine of up to $250,000.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the U.S. Department of Agriculture, Office of Inspector General, and is being prosecuted by Assistant U.S. Attorney Felice M. Duffy.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Branford Woman Who Structured Cash Transactions Is SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAWN M. GUARINO, also known as Dawn DeCapua Guarino, 54, of Branford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to two years of probation, during which she must perform 100 hours of community service, for structuring currency transactions to evade reporting requirements. GUARINO pleaded guilty to the offense on January 30, 2014.
Federal law requires all financial institutions to file a Currency Transaction Report (CTR) for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000. Structuring involves the repeated depositing or withdrawal of amounts of cash less than the $10,000 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements. Even if the deposited funds are derived from a legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law.
According to court documents and statements made in court, over the course of 18 days in October and November 2009, GUARINO cashed 18 checks made payable to her in the amount of $9,900 and totaling $178,200. The transactions occurred at 13 different branches of two banks in eight towns in the New Haven area. The checks, which were from her attorney, represented GUARINO’s portion of a settlement of a Connecticut civil lawsuit stemming from an automobile accident. At the time, GUARINO knew that the bank was required to issue a report for a currency transaction in excess of $10,000, and her intention was to evade the transaction reporting requirements.
On April 19, 2014, Judge Underhill ordered GUARINO to forfeit $13,000 based on the parties’ plea agreement. GUARINO paid the money prior to sentencing.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division and the U.S. Department of Education, Office of Inspector General. The case was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Brandon Man Sentenced to More Than 7 Years for Stolen Identity Refund FraudRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington yesterday sentenced Anthony R. Reeves to seven years and three months in federal prison for multiple counts of wire fraud, theft of government property, and aggravated identity theft. As part of his sentence, the court also entered a money judgment in the amount of $69,585.59, a portion of the proceeds of the charged criminal conduct.
Reeves was found guilty on February 3, 2014, following a bench trial.
According to court documents, on May 8, 2012, Reeves was stopped by a Florida Highway Patrol (FHP) Trooper for speeding and other traffic infractions. After a drug canine alerted on the vehicle, the car was searched. During the search, the trooper found a backpack that contained a laptop, a plastic bag containing 35 debit cards, multiple cell phones, a notebook, and 54 medical records from the Department of Veterans Affairs (VA) James A. Haley Hospital in Tampa. The notebook contained lists of names, social security numbers, email addresses, credit card numbers, and cell phone numbers. The VA medical records contained the names and SSNs of patients. In total, Reeves had the personal identifying information (PII) of 69 veterans and 52 others in his possession. Reeves admitted that he purchased VA medical records from someone whom he knew who worked at the VA, and used the information to file fraudulent tax returns.
Law enforcement conducted an analysis of the laptop, which revealed that it had been used to access numerous debit card accounts in the names of the victims. The IRS then conducted an analysis of the returns associated with Reeves, based on the files on the computer and the identifiers found in his possession. Specifically, Reeves filed at least 71 fraudulent tax returns from tax years 2010 and 2011.
Special Agent in Charge Monty Stokes, Office of Inspector General, U.S. Department of Veterans Affairs said, “This case was the result of federal, state and local law enforcement agencies aggressively pursuing those who commit identity theft. Reeves is no stranger to the criminal justice system. This 7 year, 3 month sentence will hopefully be a deterrent for others, and give him some time to consider if it was really worth it.”
“Yesterday’s sentencing of Mr. Reeves is the final culmination of years of investigation, hard work and the combined efforts of the Internal Revenue Service, the Department of Veterans Affairs, the United States Attorney’s Office and the Florida Highway Patrol,” stated Florida Highway Patrol spokesman Steve Gaskins. “An alert Florida State Trooper conducting routine traffic enforcement, who looked beyond the traffic stop for criminal activity, has led to a highly successful conclusion whereby citizens and especially veterans benefit tremendously.”
This case was investigated by the Department of Veterans Affairs, the Internal Revenue Service - Criminal Investigation, and the Florida Highway Patrol. It was prosecuted by Assistant United States Attorney Sara C. Sweeney.
Bolton, Mississippi Resident Sentenced to Prison for Drug Trafficking and Money LaunderingRead the Press Release
Jackson, Miss - Kelvin Robinson, 46, of Bolton, Mississippi, was sentenced in U.S. District Court on May 15, 2014 to 172 months in prison for conspiracy to distribute over 1,000 kilograms of marijuana, and 120 months in prison for money laundering, announced U.S. Attorney Gregory K. Davis, Special Agent in Charge Gabriel Grchan of IRS Criminal Investigation - New Orleans Field Office, and Assistant Special Agent in Charge Floyd H. Baker of the Drug Enforcement Administration’s Jackson office. The sentences will be served concurrently.
Kelvin Robinson operated K&J Trucking in Bolton, Mississippi. From 2006 through 2012, he used his trucks to transport thousands of pounds of marijuana from the Texas/Mexico border into Mississippi. He laundered part of his drug proceeds by purchasing a car in another person’s name. Law enforcement agents seized $7,203.00 in cash, a 2009 Suzuki motorcycle, a 2002 Acura RL, and a 2002 BMW 754i.
“Thanks to the dedication and hard work of several state, local, and federal law enforcement agencies, another illegal drug trafficker has been brought to justice,” said U.S. Attorney Gregory Davis. “We will continue to seek out and prosecute those who bring drugs into the Southern District of Mississippi.”
Floyd H. Baker, Assistant Special Agent in Charge of the DEA in Jackson, stated: “These types of investigations are strong examples of the effectiveness of a combined effort by federal, state and local law enforcement agencies to bring drug trafficking organizations to justice.”
Gabriel L. Grchan, Special Agent in Charge, IRS – Criminal Investigation (New Orleans Field Office) stated: “Narcotics related money laundering violations, such as those committed by Kelvin Robinson, cause damage to the strength of both the local and national economy. Robinson attempted to buy a vehicle using illegal drug proceeds, which is a violation of the law. IRS-CI will continue to play an active role in the war on drugs. Individuals guilty of buying assets for the purpose of laundering their illegal drug profits will be prosecuted.”
Robinson’s three codefendants, Thomas G. Steward, age 54, of Houston, Texas, David Herrera, age 46, of Mercedes, Texas, and Jacqueline B. Bailey, age 49, of Clinton, Mississippi, are awaiting sentencing.
This case was investigated by the Organized Crime and Drug Enforcement Task Force headed by the DEA with assistance from the Criminal Investigation Division of the IRS, Hinds County Sheriff’s Office, Jackson Police Department, Ridgeland Police Department and Madison County Sheriff’s Office.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Anderson, Indiana Man Sentenced on Health Care Fraud ChargeRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on May 16, 2014, Donald Ray Keip, 39, of Anderson, Indiana, was sentenced on the one-count indictment charging that he engaged in a scheme to commit health care fraud in the United States District Court in Benton, Illinois. The district court sentenced Keip to serve five years of probation and 15 weekends in jail. The district court also ordered Keip to pay $12,000 in restitution to the Illinois Department of Human Services and $12,000 to the Center for Medicare and Medicaid Services. The court also ordered Keip to pay a special assessment of $100.00.
Keip admitted that he had submitted false and fraudulent bills in relation to his alleged performance of personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. Keip admitted to falsely billing the program between June 30, 2011 and January 29, 2013, when he purportedly rendered personal assistant services to an individual when he, in fact, did not. As a result, Keip stole $24,000.00 in payments for services not performed.
The investigation was conducted by the U.S. Department of Health and Human Services -Office of Inspector General and the Illinois State Police - Medicaid Fraud Control Bureau. The case is being prosecuted by Assistant United States Attorney Liam Coonan.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General or call 800.447.8477.
Albuquerque Man Sentenced to Ten Years for Robbing US Bank in February 2013Read the Press Release
ALBUQUERQUE – Jay Patrick Mount, 36, of Albuquerque, N.M., was sentenced today to ten years in federal prison for his bank robbery conviction. Mount will be on supervised release for three years after completing his prison sentence.
Mount was arrested on Feb. 28, 2013, based on a criminal complaint alleging that he robbed the US Bank branch located at 1418 Carlisle Blvd. NE in Albuquerque on Feb. 25, 2013. Mount subsequently was charged with bank robbery in an indictment filed on March 27, 2013.
On Feb 5, 2014, Mount entered a guilty plea to the indictment. In his plea agreement, Mount admitted robbing the bank by presenting a demand note to a bank teller and taking money from the teller on Feb. 25, 2013. Mount acknowledged that the demand note threatened to harm the bank teller.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department and was prosecuted by Assistant U.S. Attorney William J. Pflugrath.
Afterschool Program Employee Indicted for Producing, Receiving, Distributing, and Possessing Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced that RENE CARDONA, a former employee of an afterschool program in the Bronx, was indicted today on two counts of production of child pornography, two counts of receiving and distributing child pornography, and one count of possessing child pornography. CARDONA, who was previously arrested on April 30, 2014, has been detained since his arrest.
Manhattan U.S. Attorney Preet Bharara said: “Crimes involving the alleged exploitation of children are always distressing, but they are especially so where, as here, the defendant was entrusted to work with and mentor children.”
FBI Assistant Director-in-Charge George Venizelos said: “As alleged, during various times between 2011 and 2014, Cardona repeatedly exploited and jeopardized the well-being of innocent children. It is particularly disturbing when a crime like this is committed by an individual like Cardona who is entrusted to care for our children. Cardona’s acts are inexcusable and together with our law enforcement partners, the FBI remains committed to vigorously investigating and bringing to justice those who prey upon and harm our youngest members of society.”
According to the Indictment and the Complaint filed in Manhattan federal court:
In February 2014, CARDONA engaged in multiple chats over the Internet with an eleven-year-old male located in Guam. In those chats, CARDONA, who was aware of the victim’s age, induced the youth to take sexually explicit photographs of himself and to send the photographs to CARDONA. CARDONA also sent sexually explicit photographs of himself to the youth.
CARDONA, 22, faces a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison for each count of production of child pornography. For each count of receipt and distribution of child pornography, CARDONA faces a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison, and for the one count of possession of child pornography, he faces a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
For information about the status of these federal criminal proceedings, victims may call the Victim Witness Coordinator for the United States Attorney’s Office at (866) 874-8900.
CARDONA is believed to have worked at the Betances Summer Camp and Afterschool Programs in the Bronx from 2012 to approximately 2014, and thereafter as a mentor for youths at the Youth Men’s Initiative at Betances Community Center from January to April 2014. CARDONA is also believed to have worked as a volunteer at the Betances Community Center at various times starting in 2011. As alleged in the federal Criminal Complaint, CARDONA admitted to having had inappropriate sexual contact with children, including children he had encountered through these programs.
Persons with information about children with whom CARDONA may have had inappropriate sexual contact, or from whom he may have solicited sexually explicit images or videos, are urged to contact the FBI hotline established for this investigation at (212) 384-1600, as well as the Manhattan District Attorney’s Office Sex Crimes Hotline at (212) 335-9373. The Manhattan Child Advocacy Center is available to provide services to children who may be victims of CARDONA’s conduct, including both inappropriate sexual contact and sexually explicit images. The Manhattan Child Advocacy Center can provide information about obtaining immediate medical treatment, testing for sexually transmitted diseases, and mental health counseling. The Manhattan Child Advocacy Center can be contacted at:
Manhattan Child Advocacy Center
1753 Park Avenue
New York, NY 10035
(646) 695-6100
The investigation and prosecution of CARDONA’s conduct relating to production and distribution of child pornography is being handled by the United States Attorney’s Office for the Southern District of New York. The investigation of CARDONA’s conduct relating to inappropriate sexual contact with youths is being handled by the Manhattan District Attorney’s Office.
Mr. Bharara thanked and praised the investigative work of the FBI and the New York City Police Department in this matter, as well as the Manhattan District Attorney’s Office and the U.S. Attorney’s Office for the Districts of Guam and the Northern Mariana Islands.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Andrew DeFilippis is in charge of prosecution.
The charges and allegations contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Rene Cardona Indictment
Thursday 15 May 2014
Williamson's Former Mayor Pleads Guilty to Lying to Federal InvestigatorsRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Darrin McCormick, 50, of Williamson, West Virginia, pled guilty to lying to federal agents from the FBI and IRS. McCormick, the former Williamson branch manager of the Bank of Mingo, admitted that he lied during an interview in February of 2013 about suspicious banking activities undertaken by the principals of Aracoma Contracting, LLC, a contract labor company providing employees to local coal companies. Aracoma, owned by Jerome Edward Russell, 50, of Williamson, and Frelin R. Workman, 58, of Belfrey, Kentucky, routinely sent employees to the Bank of Mingo’s Williamson branch to simultaneously withdraw cash in increments of $10,000, commonly referred to as “structuring,” so as not to trigger mandatory reporting to the IRS. Russell and Workman were using the cash to pay a cash payroll as part of a scheme to avoid payroll taxes and also to pay bribes to Arville W. Sargent, 52, of Chapmanville, a premium auditor employed by BrickStreet Mutual Insurance Company (“BrickStreet”). In exchange for cash, Sargent intentionally underreported Aracoma’s payroll, which resulted in reducing Aracoma’s insurance premium to BrickStreet.
In February of 2013, federal agents interviewed McCormick at his home in Williamson. He denied knowledge of Aracoma’s suspicious banking practice when specifically asked. At today’s hearing, McCormick admitted that he lied to the agents knowing it was important to a federal investigation.
“Lying to federal investigators is always a serious crime, but it’s particularly disappointing when the lie comes from someone who’s both an elected officeholder and a bank official,” said U.S. Attorney Goodwin. “Cash structuring provides the fuel for any number of financial crimes—including bribery, as we saw with the auditor from BrickStreet—which is why it’s so important that banks report structuring when it happens. The defendant understood that perfectly well. It’s a shame he chose to deceive federal agents rather than help them get to the truth.”
In October of 2013, Sargent was sentenced to 72 months in prison and ordered to pay over $7 million in restitution to BrickStreet and the IRS for his role in the fraudulent scheme. Russell and Workman were sentenced to thirty months for their respective roles. The corporation, Ararcoma, was ordered to pay $405,000 in forfeiture to the United States as part of its sentence.
McCormick faces up to five years in prison and $250,000 fine. Sentencing is scheduled for August 28, 2014 at 2 p.m.
This investigation was conducted by the FBI and IRS Criminal Investigation, with assistance from the West Virginia State Police and the West Virginia Insurance Commission. Assistant United States Attorney Thomas Ryan is handling the prosecution.
Wiconisco PA Man Sentenced to 20 Months for Failure to Register as Sex OffenderRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that TRAVIS WAYNE DARKES, age 32, of Wiconisco, PA, was sentenced to 20 months imprisonment, followed by 60 months of supervised release for Failure to Register as Sex Offender, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3).
The charges are a result from an investigation by the Seminole Police Department, the Oklahoma Highway Patrol and the United States Marshal Service. The defendant was indicted in September, 2013 and pled guilty in October, 2013.
The Indictment alleged that from in or about March, 2013 until on or about September 4, 2013, in the Eastern District of Oklahoma, and elsewhere, the defendant, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received convictions from the State of Pennsylvania, Lebanon County, on or about December 20, 2006, for the offenses of Indecent Assault, traveled in interstate commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
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.
Waterbury Man Charged with Enticing Minor He Met at ChurchRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MIGUEL TORRES, 44, of Waterbury, was arrested today on a federal criminal complaint charging him with enticing and attempting to entice a minor female to send him sexually explicit videos of herself and to engage in unlawful sexual activity.
According to the criminal complaint, TORRES met a minor female at the church they both attended. TORRES offered to mentor the minor, gave her his cell phone number, and they began communicating via text messages. In late June 2013, when the minor was 14 years old, TORRES began to ask the minor to send him sexually explicit videos and pictures. Their text message conversations became sexually explicit, and TORRES persuaded the minor to take sexually explicit videos and pictures of herself and send them to him. TORRES also sent the minor sexually explicit videos and pictures of himself, and he told her that he had engaged in sexual conduct with other girls so that the minor would be comfortable with it. In August 2013, TORRES and the minor discussed getting together to engage in sexual activity.
On August 30, 2013, TORRES was arrested on related state charges. A forensic examination of TORRES’s cell phone revealed several videos of the minor engaged in sexually explicit conduct.
TORRES has been detained since his state arrest. Today, he appeared before U.S. Magistrate Judge Holly B. Fitzsimmons in Bridgeport, who ordered TORRES detained.
If convicted of the federal enticement charge, TORRES faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Waterbury Police Department and Homeland Security Investigations. The Connecticut State’s Attorney’s Office in Waterbury is also providing critical assistance in this investigation. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel and Special Assistant U.S. Attorney Charles L. Rombeau.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]United States Attorney’s Office Recognizes National Police WeekRead the Press Release
Calls on All Marylanders to “Thank a Police Officer for Serving with Valor and Integrity”
Baltimore, Maryland – In connection with National Police Week – the week that includes Peace Officers Memorial Day on May 15 – the United States Attorney’s Office today encouraged all Marylanders to take a moment to remember officers who have been killed or wounded in the line of duty and to express their appreciation to the men and women who work every day to protect public safety.
“Police agencies get plenty of attention when things go wrong, but we too rarely take the opportunity to thank law enforcement officers who are on duty every morning, afternoon and evening, every day of the year,” said U.S. Attorney Rod J. Rosenstein. “We are very grateful for the service of the many outstanding officers in our local, state and federal law enforcement agencies who are working together to reduce crime in Maryland. This week, every citizen should take the opportunity to thank a police officer for serving with valor and integrity.”
Additional information about National Police Week is available at http://www.nleomf.org/programs/policeweek/. For details about officers who died in the line of duty in Maryland, visit http://www.odmp.org/search/browse/maryland.
United States Attorney Continues Fight Against Methamphetamine in Central IndianaRead the Press Release
Hogsett announces indictment and arrests of 23 defendants for
methamphetamine trafficking and firearms violationsINDIANAPOLIS - U.S. Attorney Joseph H. Hogsett announced today the indictment and arrest of 23 defendants involved in a drug trafficking operation that stretched from the Mars Hill section of Indianapolis to North Vernon, Indiana and other communities in central Indiana.
"The scourge of meth has taken a heavy toll on communities in our state, and the U.S. Attorney's Office is redoubling efforts to combat organized methamphetamine activity in Southeastern Indiana," Hogsett said.
"Long term investigations, cooperatively maintained, using sensitive investigative techniques, produce significant results. This isn’t small ball. This isn’t ‘three buys and a bust.’ This is what you do when you are serious about making the quality of life in this community better."
FBI Special Agency in Charge Robert A. Jones said, "This case is another example of the power of partnerships. The FBI and state and local partners throughout central and southern Indiana have joined together with the USAO in this investigation to dismantle a drug distribution network that has plagued the community."
The main indictment charged 16 defendants with participating in the activities of a methamphetamine distribution organization. The indictment charged the following defendants with conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine:
• Donald P. Maggard, 40, of North Vernon, Indiana;
• Ashley N. Wright, 27, of North Vernon, Indiana;
• Jason L. Howard, a/k/a Jay, 33, of North Vernon, Indiana;
• Jason D. Mantooth, 38, of Indianapolis, Indiana;
• Dorothy M. Neeley, 39, of Indianapolis, Indiana;
• Robert J. Holliday, a/k/a Jo Jo, 30, of Indianapolis, Indiana;
• Kimberly A. Ault, 31, of Indianapolis, Indiana;
• David L. Bell, 48, of Seymour, Indiana;
• David Eric Chadwell of Osgood, Indiana;
• George R. Nichols, a/k/a Rick, 59, of Butlerville, Indiana;
• Jessica R. Parsons, 32, of North Vernon, IndianaThe indictment also charged Marsha D. Fields, 56, of North Vernon, Indiana with maintaining a drug-involved premises and the following individuals with unlawful use of a communications device:
• Danny W. Maggard, 39, an inmate at the Putnamville Correctional Facility;
• Christy N. Walker, 31, of Columbus, Indiana;
• Shannon M. Palmer, 36, of Indianapolis, Indiana; and
• Faris B. Keener, 31, of McMinville, TennesseeHogsett explained that the indictment of the 16 defendants was the product of an ongoing investigation that had already produced 7 arrests for drug trafficking and firearms violations in the Mars Hill area. Those defendants previously arrested included the following:
• Jennifer L. Gaddy, 44, of Indianapolis, Indiana, charged with three counts of methamphetamine distribution;
• Logan Mediate, 20, of Indianapolis, Indiana, charged with tampering with a witness, discharge of a firearm in furtherance of a crime of violence, possession of a short-barreled shotgun in furtherance of a crime of violence, felon in possession of a firearm, and possession of a sawed-off shotgun;
• Jonathan Anderson, 29, of Indianapolis, Indiana, charged with felon in possession of a firearm;
• Dustin H. Pennington, 31, of Indianapolis, Indiana, charged with felon in possession of a firearm;
• Dwight L. Holloway, 33, of Indianapolis, Indiana, charged with possession of heroin with intent to distribute and felon in possession of a firearm;
• Justin Kincaid, 33, of Indianapolis, Indiana, charged with felon in possession of a firearm; and
• Kathleen A. Owens, 29, of Indianapolis, Indiana, charged with two counts of possession of methamphetamine with intent to distribute.“It is difficult to know just how much methamphetamine this organization distributed into central Indiana, but their dealing stops now,” said Hogsett. “Those who peddle drugs in our Hoosier communities will have the full force of federal law to deal with.”
These charges are the result of a collaborative investigation conducted by the Federal Bureau of Investigation, the Indiana State Police, the Indianapolis Metropolitan Police Department, the Fishers Police Department, and several other local enforcement agencies.
According to Bradley Blackington, who is prosecuting the case for the government, those defendants charged with conspiracy to distribute methamphetamine face up to life in federal prison and fines up to $10 million if convicted.
U.S. Attorney Booth Goodwin, U.S. Marshal John Foster and Members of the West Virginia State Police to Discuss Results of Major Sweep Aimed at Sex Offender Registration Compliance on FridayRead the Press Release
CHARLESTON, W.Va. –U.S. Attorney Booth Goodwin, joined by U.S. Marshal John Foster and members of the West Virginia State Police, will discuss the results of a sex offender registration compliance sweep conducted in Wood and Wirt counties. A press conference will be held at 10:00 a.m. on Friday, May 16, 2014 at West Virginia State Police headquarters located at 725 Jefferson Road in South Charleston, West Virginia.
OFFICIALS TO DISCUSS RESULTS OF SEX OFFENDER COMPLIANCE SWEEPWHO:
United States Attorney Booth Goodwin
United States Marshal John Foster
Members of the West Virginia State PoliceWHAT: Press conference to discuss results of sex offender registration compliance sweep conducted in Wood and Wirt counties.
WHERE:
West Virginia State Police
725 Jefferson Road
South Charleston, WV
WHEN: Friday, May 16, 2014 at 10:00 a.m.Two Sentenced in Federal Court for Obtaining Oxycodone by FraudRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced that two Beckley area residents were sentenced today in federal court for obtaining oxycodone by fraud. Sherry Lively, age 46, of Crab Orchard, West Virginia and Justin Woodie, age 22, of Beckley, West Virginia received prison sentences for six months and three months, respectively. The defendants, who plead guilty in January of 2014, forged prescriptions for oxycodone on stolen prescription pads and presented them to Beckley area pharmacies to be filled.
These cases were investigated by the DEA.
These cases were prosecuted as 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 heroin. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin.
Two More Alleged Kidnappers Arrested, Charged in Plot to Coerce Reluctant Husband to Grant Jewish DivorceRead the Press Release
TRENTON, N.J. - Special agents of the FBI arrested two men at their Lakewood, N.J., homes this morning for allegedly kidnapping a reluctant Jewish husband in order to coerce him through violence to grant his wife a religious divorce – referred to as a “get” – U.S. Attorney Paul J. Fishman announced.
David Aryeh Epstein, 39, and Chaim Baruch Rubin, 32, are charged by criminal complaint with kidnapping. Both defendants appeared in Trenton federal court this afternoon before U.S. Magistrate Judge Douglas E. Arpert. They each were released on $500,000 bail with home detention and electronic monitoring.
According to the complaint unsealed today:
In November 2009, Rubin called the victim concerning a sales job opportunity at “ShredZone” in Lakewood, and the victim, who had been living in Brooklyn, N.Y., moved to a temporary residence in Lakewood to begin work. A few days later, Rubin asked him to stay late for a private meeting.
When he walked to his car that evening, the victim was attacked by a group of men. He was bound, put in a van, beaten and shocked with a stun gun until he agreed to grant his wife a divorce.
David Epstein is the son of rabbi Mendel Epstein, 68, of Brooklyn, who was previously charged in October 2013 with conspiracy to commit kidnapping, along with nine other individuals. Four of those charged have since pleaded guilty to extortion charges in connection with this case.
If convicted, the defendants face a maximum potential penalty of life in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s arrests.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Sarah Wolfe of the U.S. Attorney’s Office in Trenton.
The pending charges and allegations against these and related defendants are merely allegations and they are considered innocent unless and until proven guilty.
14-177
Defense counsel:
David Epstein: Harlan Protass Esq., New York
Chaim Rubin: James Moriarty Esq., New YorkEpstein, David and Chaim, Rubin Complaint
Two Blue Springs Realtors Sentenced for $11 Million Mortgage FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two Blue Springs, Mo., real estate agents and several co-defendants have been sentenced in federal court for their roles in an $11 million mortgage fraud scheme.
Leann Raejeana Turner, 44, of Blue Springs, was sentenced to three years in federal prison without parole on Monday, May 12, 2014. The court also ordered Turner to pay $4,912,040 in restitution.
On May 30, 2012, Turner pleaded guilty to one count of conspiracy to commit wire fraud and one count of money laundering. Turner is one of nine defendants who participated in the mortgage fraud scheme from early 2005 to Aug. 4, 2006. Turner was a real estate agent working for a series of real estate companies during the conspiracy. Carole L. Colson, 71, formerly doing business as Carole Colson Real Estate in Blue Springs, now of Lake Worth, Fla., was a real estate agent. Bruce Q. Williams, 44, of Kansas City, Kan., and Anthony E. Hicks, 42, of Little Rock, Ark., were loan officers at mortgage brokerage companies. Other co-defendants were “home buyers” who conspired to defraud mortgage lenders.
Mortgage lenders made loans of approximately $11,092,886 on 16 residential properties in Lee’s Summit, Liberty, Blue Springs, Parkville, Independence and Oak Grove, Mo. From that total, unbeknownst to the lenders, buyers received approximately $2,006,845 from the loan proceeds in illegal secret kickbacks. The scheme resulted in a financial loss to mortgage lenders of nearly $5 million.
The scheme involved buying and selling homes at inflated prices, obtaining mortgage loans at the inflated prices, then kicking back $100,000 of the excess loan proceeds to each of the home buyers without the lenders’ knowledge. The scheme financially benefitted all of the conspirators. Turner (the real estate agent for 15 of the 16 transactions) received commissions and sometimes hidden payments and assets; Williams and Hicks (the loan officers) received commissions from the transactions; and the home buyers received kickbacks.
Turner and Colson listed and arranged for the sale of the homes at inflated prices and solicited buyers. Misrepresentations and omissions of material facts were made to mortgage lenders in order to obtain the loans. In order to obtain the loan proceeds without the lenders’ knowledge, the buyers created fictitious businesses that issued false invoices that claimed the businesses had provided work and services for which they were entitled to receive loan proceeds.
In addition to Turner’s sentencing this week, Colson was sentenced to five years of probation (including six months of house arrest, 120 hours of community service and ordered to pay $2,291,110 in restitution); Williams was sentenced to one year and one day in federal prison (and ordered to pay $3,443,123 in restitution); Hicks was sentenced to 10 months in federal prison (and ordered to pay $953,958 in restitution); Linda Joyce Henry Johnson, 65, of Corona, Calif., was sentenced to five years of probation (with six months of house arrest and ordered to pay $228,744 in restitution).
James Arthur Nash, Jr., 44, and Arman Nshanian, 38, both of Corona, Calif., two deputies of the Los Angeles County, Calif., Sheriff’s Department, were convicted at trial on Dec. 6, 2013, and await sentencing. They were each found guilty of conspiracy to commit wire fraud. In addition to the criminal conspiracy, Nash was convicted of four counts of wire fraud and Nshanian was convicted of two counts of wire fraud related to fax transmissions and emails that were sent across state lines during the mortgage application process.
Nash fraudulently purchased two residential properties in Blue Springs, Mo. He received $100,000 from each property. Nshanian fraudulently purchased a residential property in Lee’s Summit, Mo., and received $100,000.
Mark P. Billey, 40, of Buena Park, Calif., was sentenced on Sept. 20, 2011, to two years and nine months in federal prison and ordered to pay $701,450 in restitution.
Zelda Ann Jackson, 41, of Newbury Park, Calif., a real estate agent, pleaded guilty to assisting her husband in the purchase of a property. A sentencing hearing is scheduled on May 28, 2014.
This case is being prosecuted by Assistant U.S. Attorney Linda Parker Marshall. It was investigated by the FBI and IRS-Criminal Investigation.