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9 July 2014
Haughton Man Sentenced to 120 Months in Prison for Distributing Illegal Drugs and for Firearms ChargeRead the Press Release
SHREVEPORT, La. – A Haughton man was sentenced to 120 months in prison and five years of supervised release for a firearms charge and for selling cocaine and methamphetamine with his girlfriend and mother, U.S. Attorney Stephanie A. Finley announced today.
Deshun J. McNeely, 33, of Haughton, La., was sentenced by U.S. District Judge Donald E. Walter to 60 months in prison for one count of conspiracy to distribute cocaine and methamphetamine and 60 months in prison for one count of possession of a firearm during a drug trafficking crime. According to evidence presented at the guilty plea on October 24, 2013, McNeely, his girlfriend Marenda Smith, and his mother Brenda White, conspired to sell cocaine and methamphetamine in northeast Louisiana from 2012 to 2013. On May 7, 2013, agents executed a search warrant at McNeely and Smith’s home. Powder cocaine, crack cocaine, methamphetamine, drug paraphernalia, four firearms and $9,000 were seized. Agents also seized $36,000 found in a storage unit McNeely and Smith rented.
Smith was sentenced to 30 months in prison and White 24 months in prison on May 22, 2014. They were also each ordered to serve three years of supervised release.
The defendants were prosecuted as part of OCDETF Operation Styrofoam Cookies. The Drug Enforcement Administration investigated the case. The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Assistant U.S. Attorney James G. Cowles Jr. prosecuted the case.
Georgia Police Officials and Former Deputy Indicted by Federal Grand Jury on Charges of Excessive Force and Obstruction of JusticeRead the Press Release
The Department of Justice announced today that a federal grand jury in the U.S. District Court for the Middle District of Georgia returned indictments charging four law enforcement officers with civil rights violations and obstruction of justice in connection with an incident that occurred at Bainbridge BikeFest in 2012. A seven count indictment was returned charging former Grady County Sheriff’s Deputy Wiley Griffin IV and Decatur County Sheriff’s Office Captain Elizabeth Croley with violating an individual’s civil rights. Additionally, Croley, Decatur County Sheriff’s Deputy Christopher Kines and former Decatur County Sheriff’s Deputy Robert Wade Umbach were charged with obstructive conduct relating to the investigation into the civil rights violation.
The indictment charges that Griffin used excessive force during the arrest of a civilian, A.P., at the Bainbridge BikeFest motorcycle event in Bainbridge, Georgia, on Sept. 15 to 16, 2012, thereby violating A.P.’s civil rights. As a result of the assault, A.P. sustained injuries to his face, including cuts, bleeding, swelling and bruising.
The indictment also charges Croley, Kines and Umbach with writing false reports to cover up the assault. In addition, Kines and Umbach were charged with making misleading statements to the FBI to obstruct the agency’s investigation into the use of force against A.P.
In addition, the indictment charges Croley with violating A.P.’s constitutional right to a fair trial by intentionally withholding material exculpatory evidence from the District Attorney’s office, and, in turn, from A.P.’s criminal defense attorney, during prosecution of A.P. arising from the arrest at BikeFest.
The civil rights charge against Griffin carries a statutory maximum sentence of 10 years in prison. The civil rights charge against Croley carries a statutory maximum sentence of one year in prison. Additionally, Croley, Kines and Umbach face a statutory maximum sentence of 20 years in prison for their falsification of reports, and Umbach and Kines face a statutory maximum sentence of 20 years in prison for making misleading statements to obstruct justice.
This case is being investigated by the FBI and is being prosecuted by Trial Attorneys Christine M. Siscaretti and Risa Berkower of the Justice Department’s Civil Rights Division, with support from the U.S. Attorney’s Office for the Middle District of Georgia.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendants are presumed innocent unless and until proven guilty.
Four Individuals Indicted in July Federal Grand JuryRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office announced today the results of the July 2014 Federal Grand Jury.
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. Statutory maximum punishments are in parentheses. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
VICENTE ANDRADE, age 31, of White Plains, NY
PEDRO HERNANDEZ-PEREZ, age 38, of White Plains, NY a/k/a JOHNNY GARCIA
Possession with Intent to Distribute Heroin
The Indictment alleges that on or about July 2, 2014, within the Eastern District of Oklahoma, the defendants did knowingly and intentionally possess with intent to distribute one kilogram or more of heroin, a Schedule I controlled substance.
The charges arose from an investigation by the Oklahoma Highway Patrol the Drug Enforcement Administration. The charges are in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A) and Title 18, United States Code, Section 2, punishable by not less than 10 years imprisonment and/or up to a $10,000,000.00 fine.
Assistant United States Attorney Dean Burris
PETER GLENN BAKER, age 42, of Skamania County, WA
Failure To Register As A Sex Offender
The Indictment alleges that from in or about October 2013 until in or about December 2013 and again from in or about March 2014 until on or about May 3, 2014, within 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 a felony conviction, traveled in interstate commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
The charges arose from an investigation by the United States Marshal Service. The charges are in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3), punishable by up to 10 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorney D. Edward Snow
JOBY TUCSON NORTHINGTON, age 34, of Tahlequah, OK
Possession of Unregistered Firearm (Destructive Device)
The Indictment alleges that on or about April 12, 2014, within the Eastern District of Oklahoma, the defendant did knowingly possess a destructive device, which is a firearm, as defined in Title 26, United States Code, Section 5845, not registered to him in the National Firearms Registration and Transfer Record.
The charge arose from an investigation by the Cherokee County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The charge is in violation of Title 26, United States Code, Sections 5861(d), 5841 and 5871, punishable by up to 10 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorney Chris Wilson
Former Strip Club Owner Rick Rizzolo Charged with Felony Tax EvasionRead the Press Release
LAS VEGAS, Nev. – Former Las Vegas strip club owner Rick Rizzolo was indicted by the federal grand jury today on charges that he attempted to evade over $2.5 million in employment and income taxes, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Rizzolo is charged with two counts of attempt to evade and defeat the payment of tax. Special Agents with IRS Criminal Investigation arrested him this afternoon, and he will be scheduled for an initial appearance and arraignment before a United States Magistrate Judge tomorrow. If convicted, Rizzolo faces up to five years in prison and up to a $250,000 fine on each count.
The indictment alleges that beginning on about June 28, 2006, and continuing to May 31, 2011, Rizzolo allegedly attempted to evade the payment of approximately $1.7 million in employment taxes that he owed for 2000 to 2002, and $861,075 in income taxes he owed for 2006, by concealing and attempting to conceal from the IRS the nature, extent and location of his assets, by making false statements to IRS employees, and by placing funds and property in the names of nominees and beyond the reach of process.
The case is being investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorneys Phillip N. Smith, Jr. and Sarah E. Griswold.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Former Social Worker Convicted of Theft of Public MoneyRead the Press Release
United States Attorney Deborah R. Gilg announced that James Leonard Holt, 64, of Omaha, Nebraska, was sentenced today in Lincoln, Nebraska, to five years of probation by United States District Judge Lyle E. Strom, after pleading guilty to an information charging him with 9 counts of theft of public money. Additionally, Mr. Holt’s former business, Umoja, P.C., was also convicted on a one-count indictment charging health care fraud and sentenced to five years of probation. Both Mr. Holt and Umoja, P.C., were ordered to jointly pay $15,530.54 in restitution to the Nebraska Department of Health and Human Services, Division of Medicaid and Long Term Care.
Holt has a masters degree in social work and was a licensed mental health counselor. Umoja, P.C., was incorporated in September of 2008 and both Holt and Umoja were enrolled providers with the Nebraska Medicaid Program. Between approximately September of 2009 and September of 2012, Holt and Umoja, P.C. fraudulently submitted claims and unlawfully took money by submitting the false claims to Nebraska Medicaid for reimbursement. These claims were purportedly for sessions of individual and family psychotherapy. The claims submitted by Holt and Umoja were false because the services for which the claims were made were not provided. During the course of the investigation, 231 false claims were discovered that had been submitted for reimbursement.
As a part of the plea agreements for both Holt and Umoja, they have agreed to an exclusion from participation in any federally-funded health care benefit program for a time period yet to be determined by the United States Department of Health & Human Services.
This case was investigated by the United States Department of Health and Human Services, the Nebraska Attorney General’s Office, and the Nebraska Department of Health & Human Services.
Former New Orleans Mayor C. Ray Nagin Sentenced to 10 Years Imprisonment for Conspiracy, Bribery, Honest Services Wire Fraud, Money Laundering and Tax ViolationsRead the Press Release
C. RAY NAGIN (“NAGIN”), age 58, a resident of Frisco, Texas, was sentenced today to 10 years imprisonment by United States District Judge Helen G. Berrigan for conspiracy, bribery, honest services wire fraud, money laundering and tax violations, announced the U.S. Attorney’s Office. In addition to the term of imprisonment, NAGIN was ordered to pay $84,264 in restitution to the Internal Revenue Service. Also, a Preliminary Order of Forfeiture was signed by the judge on May 27, 2014, granting forfeiture in the amount of $501,200.56.
NAGIN served as the Mayor of New Orleans from 2002 to 2010. A federal grand jury sitting in the Eastern District of Louisiana indicted NAGIN on January 18, 2013. NAGIN stood trial from January 27, 2014 to February 12, 2014 when the jury found NAGIN guilty on 20 of 21 counts in the indictment.
"Given the nature and extent of former Mayor Nagin's criminal conduct and betrayal of public trust over the course of several years, hopefully this result will bring at least some level of resolution to the City and its residents," stated Michael J. Anderson, Special Agent in Charge of the New Orleans Field Division of the Federal Bureau of Investigation.
"In February, a jury of New Orleans citizens sent Mr. Nagin the message, loud and clear, that public officials will be held accountable for public corruption and criminal activity. Today's sentence confirms that message - public servants are elected to serve the public, not benefit from the position," said Richard Weber, Chief IRS Criminal Investigation. "No one is above the law and IRS Criminal Investigation will continue to investigate all financial crimes which undermine the public's confidence in its elected officials."“NOLAOIG discovered financial discrepancies when it conducted an evaluation of the City’s Crime Camera System in 2009,” stated Ed Quatreveaux, Inspector General for the City of New Orleans. “The joint FBI-NOLAOIG investigation into those discrepancies eventually led to the convictions of Greg Meffert, Mark St. Pierre, and the former mayor. NOLAOIG will continue its work to root out fraud and abuse in City operations to protect the City from those who would defraud it.”
“Ray Nagin’s sentencing brings to a close a sordid chapter in New Orleans’ history in which the man charged with leading a city out of crisis instead chose to enrich himself, his family, and friends,” stated Rafael C. Goyeneche III, President of the Metropolitan Crime Commission. “This case epitomizes the vital role the public plays in exposing corruption as information supplied by citizens through the Metropolitan Crime Commission aided the FBI and U.S. Attorney’s Office in bringing this case to a just conclusion.”
“Our elected officials are entrusted to place the interests of the citizens above their own,” stated United States Attorney Kenneth Allen Polite, Jr. “When they violate that trust and break the law, the U.S. Attorney’s Office will pursue them zealously and bring them to justice.”The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation Division and the New Orleans Office of Inspector General. The U.S. Attorney’s Office would also like to acknowledge the assistance provided by the Metropolitan Crime Commission. The case was prosecuted by Assistant U.S. Attorneys Matthew M. Coman, Richard R. Pickens, II and Matthew S. Chester.
Former IRS Employee Sentenced to More Than 4 Years in Prison for Claiming over $1,745,000 in False Tax ReturnsRead the Press Release
FRESNO, Calif. – Monica Nanette Hernandez, 41, of Fresno, was sentenced on Monday by United States District Judge Anthony W. Ishii to four years and five months in prison for filing false tax returns, wire fraud, and aggravated identity theft, United States Attorney Benjamin B. Wagner announced. Judge Ishii also ordered Hernandez to pay $175,144 in restitution.
According to court documents, Hernandez worked for the IRS Service Center in Fresno as a part-time data entry clerk. While employed in that capacity, Hernandez filed three tax returns for herself claiming excessive federal tax withholdings based on falsely claimed interest and dividend income. Because of these fraudulent returns, Hernandez obtained more than $175,000 in refunds from the IRS.
In addition, in April 2010, Hernandez stole 68 tax returns from the IRS Service Center that had not yet been entered into the IRS’s computer system. She electronically filed fraudulent tax returns for her own benefit using the identification information of some of these taxpayers in which she claimed excessive federal tax withholdings from dividends and interest income. In total, Hernandez attempted to claim more than $1,745,000 in fraudulent tax refunds through the returns she filed using other taxpayers’ personal information.
“Identity theft is an epidemic that has hit the American people hard, and having an Internal Revenue Service employee involved in such criminal activity erodes the public trust in government institutions, especially the IRS,” said Rod Ammari, Special Agent in Charge, San Francisco Field Division, Treasury Inspector General for Tax Administration. “TIGTA and its law-enforcement partners will actively investigate IRS-related identity theft cases, and will do everything within its powers to ensure those involved will be prosecuted to the fullest extent of the law.”
This case was the product of an extensive investigation by the Internal Revenue Service, Criminal Investigation and the Treasury Inspector General for Tax Administration. Assistant United States Attorneys Grant B. Rabenn and Christopher D. Baker prosecuted the case.
Former Hughestown Borough Police Officer Charged with Drug Trafficking OffenseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today the filing of a criminal information charging Robert F. Evans, Jr., age 38, Moosic, Pennsylvania, with distributing oxycodone on numerous occasions between August 2012 to July 29, 2013. At the time of the offense, Evans was employed as a police officer with the Hughestown Borough Police Department.
United States Attorney Peter Smith stated that the charge is the result of an investigation conducted by the Federal Bureau of Investigation and the Pennsylvania State Police. Prosecution is assigned to Assistant United States Attorney John Gurganus.
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 particular case, the maximum penalty under the federal statute is twenty 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.
Former Houston Banker Convicted of Bank FraudRead the Press Release
HOUSTON – Carlos Lavin Ibarra, 33, of Houston, has entered a guilty plea to one count of bank fraud, announced United States Attorney Kenneth Magidson.
Ibarra worked at JP Morgan Chase Bank in Houston. He admitted that while employed there, he purchased or caused to be purchased $779,000 in cashier’s checks on accounts owned by a person from Nigeria. This person was deceased at the time of the defendant’s actions and Chase was not advised of his death. The defendant admitted he acted fraudulently and without authority.
The cashier’s checks were all made payable to “Ben Leasing.” Ibarra admitted he caused another individual to obtain a certificate of operation under the assumed name of Ben Leasing from the County Clerk of Harris County and open a bank account in that name. However, that person refused to accept the cashier’s checks and Ibarra then re-deposited the checks at Chase. He further caused eight more cashier’s checks to be purchased in various amounts, payable to different individuals with whom Ibarra had a relationship. Three of these checks were subsequently exchanged for identical Chase cashier’s checks. All of the Chase cashier’s checks were deposited into different bank accounts in Houston.
U.S. District Judge WHO, has set sentencing for Sept. 29, 2014. At that time, Ibarra faces a maximum penalty of 30 years imprisonment and a fine of up to $1 million. He was permitted to remain on bond pending that hearing.
As part of his plea, Ibarra has also agreed to a forfeiture of $779,000.
The case was investigated by the Secret Service and is being prosecuted by Assistant United States Attorney John Braddock.
Former Farmington Private School Teacher Charged with Coercing Minor to Engage in SexRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in New England, announced that a federal grand jury in Hartford returned an indictment today charging JOSEPH RAJKUMAR, 44, formerly of Farmington, with one count of use an interstate facility to persuade a minor to engage in sexual activity. The charge stems from RAJKUMAR’s sexual relationship with a student while he was a teacher at Miss Porter’s School in Farmington.
The indictment alleges that, in approximately November 2011, RAJKUMAR used a computer connected to the Internet to entice a minor who had not reached the age of 18 to engage in sexual activity for which any person could be charged with a criminal offense.
If convicted of the charge, RAJKUMAR faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
RAJKUMAR previously pleaded guilty in state court to sexual assault in the second degree and, in January 2014, was sentenced to 10 years of incarceration, execution suspended after 18 months, and 10 years of probation. He is currently in state custody.
This matter is being investigated by Homeland Security Investigations with the assistance of the Farmington Police Department. The case is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
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Tom Carson
(203) 821-3722 [email protected]Former Administrator Sentenced for Embezzling from Jackson County CourtRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former court administrator for the Jackson County Circuit Court was sentenced in federal court today for a fraud scheme in which she embezzled more than $140,000 from the circuit court.
“This highly paid public official abused her position of trust and authority to steal from the court month after month, year after year, and did not stop until she was caught,” Dickinson said. “She lavished public money on personal luxuries and secretly enriched her boyfriend. Now she is being held accountable for breaking the laws she was sworn to uphold.”
Teresa L. York, 59, of Blue Springs, was sentenced by U.S. District Judge Howard F. Sachs to two years in federal prison without parole. The court also ordered York to pay $139,536 in restitution.
York was appointed as the court administrator for the Jackson County Circuit Court in 2003. She was placed on administrative leave on June 4, 2012, after her embezzlement was discovered, and resigned on July 2, 2012. York pleaded guilty to mail fraud on Nov. 21, 2013.
York admitted that she engaged in a scheme to defraud the court between January 2009 and June 4, 2012. York used court-paid credit cards for her own personal use and purchased gift cards paid for by the court for her own personal use. York also entered into a fraudulent contract for which no services were ever provided and which primarily benefited a person with whom she had a romantic relationship.
As a result of York’s fraudulent actions, the total loss to the court was $142,278. After being confronted with her embezzlement scheme and placed on leave, York reimbursed the court $2,742, resulting in a total loss of $139,536.
Credit Card Scheme
The Jackson County Circuit Court used credit cards to pay for court business, such as judicial travel and Missouri Bar expenses. These credit cards were collectively referred to as purchasing cards, or “P-cards.” As court administrator, York was an authorized user of the P-cards.
York admitted that, from 2009 to 2012, she used the court’s P-card to purchase:
- $2,252 for gas for her personal driving, even though the court used mileage reimbursement forms to reimburse business driving;
- $9,532 for personal items and gift cards from Amazon;
- $6,446 for personal items such as clothing and make-up;
- $8,350 for personal meals;
- $487 for U.S. postal stamps for her personal use (the court uses metered postage for its mail, rather than stamps);
- $46,535 for Apple computer products (the court did not use a system compatible with Apple computers);
- $35,356 for gift cards. (York kept most of the gift cards, in the amount of $29,371, for her personal use and distributed $5,985 of these gift cards to court staff, on a merit system determined by her, as a type of bonus. The amounts of the cards were more than the Internal Revenue Service de minimis requirements for income reporting, however, the cards were not ever tracked or reported as income.)
York also sold some computers owned by the court and kept the proceeds of the sales for her personal use.
The loss to the court from York’s credit card scheme was $79,438.
Contract Scheme
York also engaged in a fraudulent contract scheme. On Sept. 30, 2010, York entered into a contract with CBDM Services, LLC, on behalf of the court, purportedly for workflow analysis (a business process review, a customer service evaluation and an organizational redesign). The amount to be paid was originally $68,000, although it was later increased to $69,500.
CBDM was not organized as a company at the time the contract was signed. CBDM and its owner, identified in court documents as “N.D.,” were actually a front used to conceal the true contracting party, identified in court documents as “B.V.” York did not disclose to the court that B.V. would be receiving more than 90 percent of the payments made to CBDM or that she had a romantic relationship with B.V.
At York’s direction, the court paid CBDM a total of $64,500, although no usable work product or report was produced. Of the $64,500 paid by the court, the owner and only principal of CBDM (identified in court documents as “N.D.”) kept approximately $2,000 plus banking fees and sent the remainder, approximately $62,000, to B.V.
This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the FBI.
Public Corruption Hotline
The FBI has established a toll-free public corruption hotline, 1-855-KCPCTIP, and email [email protected]. Details regarding the various types of public corruption investigated by the FBI can be found online: http://www.fbi.gov/about-us/investigate/corruption.Food Service Manager and Co-Defendant Sentenced in Identity Theft Scheme Involving Miami-Dade County Public Schools Students' Personal Identifying InformationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendants Pamela Rhim-Grant, 40, and Eugene Moss, 33, both of Miami, were sentenced today before U.S. District Judge Joan A. Lenard. Rhim-Grant was sentenced to 81 months in prison, to be followed by two years of supervised release. Moss was sentenced to 70 months in prison, to be followed by two years of supervised release. Rhim-Grant and Moss were each also ordered to pay restitution in the amount of $87,736.00.
Sentencing for co-defendant Nydia Nelson, 30, of Miami, is scheduled for July 25, 2014, before U.S. District Judge Cecilia M. Altonaga. Each of the defendants previously pled guilty to one count of computer fraud, in violation of Title 18, United States Code, Section 1030, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, Rhim-Grant was a food service manager at Horace Mann Middle School and an employee of Miami-Dade Public Schools. In connection with her position, Rhim-Grant had network computer access to the Miami-Dade Public Schools’ Integrated Student Information System (ISIS) database through which Rhim-Grant could access information regarding current and former Miami-Dade County Public Schools students' personal identifying information (PII), including names, dates of birth, and social security numbers.
Court documents also state that from approximately October 2012 through January 21, 2014, Rhim-Grant and co-conspirators Moss and Nelson agreed and conspired to access the network computer, with the intent to commit stolen identity fraud, for the purpose of obtaining student PII in furtherance of that fraud. Moss and Nelson placed orders for student PII with Rhim-Grant. Once the order was received, Rhim-Grant accessed the network computer and printed student information sheets containing the PII from the ISIS database and delivered them to either Moss or Nelson at a prearranged location. Once in possession, Moss and Nelson used the student PII to file income tax returns seeking fraudulent refunds. The fraudulent refunds were directed either to prepaid debit cards or accounts controlled by Nelson.
According to court documents, Rhim-Grant was paid $10 per student’s PII in either cash or gift cards. According to Rhim-Grant, approximately 400 students’ PII were fraudulently accessed on the network computer and delivered to Moss or Nelson pursuant to the scheme.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and the Miami-Dade Schools Police Department. The case is being prosecuted by Assistant U.S. Attorney Frank R. Maderal.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Fomer Philadelphia Police Officer Charged in Extortion SchemeRead the Press Release
PHILADELPHIA - Christopher Saravello, 37, of Philadelphia, PA, was charged by indictment, unsealed today, in a scheme to extort drugs and money from drug dealers and drug buyers while working as a Philadelphia Police Officer, announced United States Attorney Zane David Memeger. He is charged with one count of conspiracy to commit Hobbs Act extortion and five counts of Hobbs Act extortion.
According to the indictment, between November 2011 and June 2012, while employed as a Philadelphia Police Officer assigned to the 6th District, Saravello conspired with others, known to the grand jury, to rob drug dealers and drug buyers of cash and Oxycontin and other controlled substances. It is alleged that Saravello’s co-conspirators would alert him to a drug sale or drug buy. Saravello would then allegedly interrupt the planned drug transaction, identifying himself as a law enforcement officer by approaching the transaction in a marked police vehicle, wearing a police uniform, displaying an official badge and identification, or verbally identifying himself as a police officer. The indictment alleges that Saravello seized the narcotics being sold by the drug seller or the money being paid by the drug buyer and shared the drugs and/or money seized with his co-conspirators. In doing so, Saravello used his status as a law enforcement officer to seize the controlled substance and/or money from the drug seller or buyer. The alleged conspiracy resulted in the illegal taking of more than $9,800 in drug money and quantities of Oxycontin and other narcotics.
If convicted of all charges, Saravello faces a maximum possible sentence of 120 years in prison, $1.25 million fine, three years of supervised release and a $600 special assessment.
The case was investigated by the Federal Bureau of Investigation and Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Arlene Fisk.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to read the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Florida Man Pleads Guilty to Possession of Child PornographyRead the Press Release
WASHINGTON – David Mario Riley, 38, of Tampa, Fla., pled guilty today to a federal charge of possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Riley entered the guilty plea in the U.S. District Court for the District of Columbia. The Honorable Christopher R. Cooper is to sentence him on Oct. 1, 2014. Riley faces a maximum sentence of 20 years of imprisonment and a fine of $250,000.
According to the government's evidence, on Dec. 10, 2013, Riley contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted an ad on a social network site. Over the next few days, Riley engaged in e-mail and instant message conversations with the undercover officer about child pornography and a shared sexual interest in children. During their communications, Riley sent the undercover officer eight still images of child pornography.
Pursuant to a search of various electronic equipment in Riley’s hotel room in Crystal City, Va., law enforcement recovered about 14 videos and 40 still images of child pornography.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who is prosecuting the case.
14-160Florida Correctional Officer Pleads Guilty to Tax Fraud Using Inmates’ IdentitiesRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Jerry St. Fleur (26, Tampa) today pleaded guilty to wire fraud and aggravated identity theft. St. Fleur faces a maximum penalty of twenty years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, beginning no later than January 2011, and continuing until about May 2014, St. Fleur, in his capacity as a correctional officer at the Zephyrhills Correctional Facility, in Zephyrhills, Florida, unlawfully accessed and stole the personal identifying information (PII) of inmates, both former and current, within the Florida Department of Corrections (FDOC). St. Fleur would “screen scrape” (i.e., cut and paste) inmates’ PII, without their knowledge or permission, from FDOC databases and then use that PII to file false tax returns. As part of this scheme, St. Fleur filed approximately 182 fraudulent income tax returns. The government estimates that the total amount of fraudulent refunds requested from the 182 tax returns was over $500,000.
This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Matthew Jackson.
This case was brought as part of the Tampa Bay Identity Theft Alliance, an initiative dedicated to combating the scheme of using stolen identities to file fraudulent federal income tax refund claims. The United States Attorney's Office for the Middle District of Florida, the United States Secret Service, the United States Postal Inspection Service, Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation, the Tampa Police Department and the Hillsborough County Sheriff's Office are working together on this joint investigative and enforcement effort.
Felon Who Disregarded Brave Message Sentenced to Lengthy Federal and State Prison TermsRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today that Chief U.S. District Judge Brian A. Jackson sentenced DEVONTAE LEE, age 21, of Baton Rouge, Louisiana, to 54 months imprisonment and 3 years of supervised release. The sentence results from LEE’s federal conviction for possessing a firearm while a felon on October 17, 2013.
LEE was also convicted and sentenced last week to 10 years imprisonment on a similar charge based on the same conduct in the Nineteenth Judicial District Court. LEE may also face more prison time in state court based on unrelated conviction for unauthorized entry of an inhabited dwelling.
On April 3, 2013, LEE attended the BRAVE Project’s first “call-in” meeting with several local law enforcement leaders, including the District Attorney, the East Baton Rouge Parish Sheriff, the Baton Rouge Police Chief, and the United States Attorney, as well as community leaders, a crime victim, and a resource counselor. At the meeting, this coalition of law enforcement and community partners personally addressed LEE and other individuals responsible for chronic criminal conduct and/or suspected of having ties to groups associated with violent crime. The coalition repeatedly asked LEE and others to stop the violence, offered significant resources to those who would agree, and warned that those who continued to commit crimes would be prosecuted.
Six months later, on October 7, 2013, two Baton Rouge Police Officers contacted LEE, a convicted felon, and discovered that he possessed a loaded pistol which had been reported stolen. On January 16, 2014, in federal court, LEE pled guilty before Chief Judge Jackson to possession of a firearm by a convicted felon. At today’s sentencing hearing, prior to imposing the 54-month sentence, the Court noted LEE’s significant criminal history and remarked that LEE had not taken advantage of repeated opportunities to turn his life around.
U.S. Attorney Green stated: “This office will continue to join with our federal, state, and local partners in executing the BRAVE project, which includes aggressively pursuing at all levels those offenders who unfortunately fail to heed the BRAVE message.”
District Attorney Moore stated: “While everyone involved would much rather see those individuals turn away from crime and become productive members of society, law enforcement will fulfill the promises made during the BRAVE call-in sessions.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Baton Rouge Police Department. The case is being prosecuted by Assistant United States Attorney Chris Dippel and Assistant United States Attorney Alan Stevens who serves as a Deputy Chief of the Criminal Division.
Federal Jury Finds Artesia Woman Guilty on Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Yesterday a federal jury sitting in Las Cruces, N.M., returned a verdict finding Genevieve Hernandez, 36, of Artesia, N.M., guilty on methamphetamine trafficking charges after a two-day trial. The jury’s verdict was announced by U.S. Attorney Damon P. Martinez, Will R. Glaspy, Special Agent in Charge of the El Paso Division of the DEA, and Commander James McCormick of the Pecos Valley Drug Task Force.
Hernandez and her co-defendant, Mickah Chavez, 21, also of Artesia, were indicted in Jan. 2014, and charged with conspiracy to distribute methamphetamine. Hernandez and Chavez each also was charged with a count of distribution of methamphetamine. The indictment charged the two with conspiring to distribute and distributing more than five grams of methamphetamine on Feb. 22, 2012, in Eddy County, N.M.
Chavez, who was arrested in Jan. 2014, entered a guilty plea to the two methamphetamine trafficking charges against him on March 14, 2014. He was sentenced to 24 months in federal prison on July 1, 2014. Hernandez, who was arrested in Feb. 2014, chose to exercise her right to a jury trial.
The trial against Hernandez began on July 7, 2014, and concluded yesterday when the jury returned a guilty verdict against Hernandez on the two methamphetamine trafficking charges in the indictment. The trial evidence established that on Feb. 22, 2012, an undercover agent who was posing as a drug dealer arranged to purchase a half ounce of methamphetamine from Chavez in Artesia. After negotiating an $800 price for the methamphetamine, Chavez left the area and returned accompanied by a vehicle driven by Hernandez. After Chavez obtained the $800 from the undercover agent, he went to the vehicle and got the methamphetamine from Hernandez. Chavez then delivered the methamphetamine to the undercover agent. In Aug. 2012, agents interviewed Hernandez and inquired about the methamphetamine transaction that occurred on Feb. 22, 2012. During the interview, Hernandez admitted knowledge of the drug deal.
Hernandez has been in federal custody since her arrest and remains detained pending her sentencing hearing, which has yet to be scheduled. At sentencing, Hernandez faces a mandatory minimum sentence of ten years in prison. Hernandez faces this enhanced sentence because she previously has been convicted of a narcotics trafficking crime.
This case was investigated by the Las Cruces office of the DEA and the Pecos Valley Drug Task Force, and is being prosecuted by Assistant U.S. Attorney Renee L. Camacho of the U.S. Attorney’s Las Cruces Branch Office.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, the Artesia Police Department and the Carlsbad Police Department, and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.Federal Jury Convicts Man for Luring Girl for Sex on Craigs ListRead the Press Release
LAS VEGAS, Nev. – Following a two-day jury trial, a local man was convicted today of using the internet to knowingly persuade, induce and entice a minor girl to engage in sexual activity with him during March 2013, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Sergio Torres, 34, of North Las Vegas, was convicted of one count of coercion and enticement and is scheduled to be sentenced on Oct. 6, 2014, at 10:30 a.m. Torres faces a minimum of 10 years in prison and a fine of up to $250,000 on each count.“As this case warns, there are predators lurking openly on the internet seeking children and minors for sex,” said U.S. Attorney Bogden. “Everyone, and particularly parents and teenagers, need to be especially careful when responding to online advertisements.”
According to the court records, on March 7, 2013, a Henderson Police Department detective working undercover and posing as a 14-year-old girl, responded to an advertisement on craigslist.com. The poster of the advertisement, later identified as Torres, stated he was a virgin and was seeking a girl to “take his virginity.” Over the next two weeks, the detective and Torres exchanged emails and texts, and Torres discussed plans and arrangements for a sexual encounter with the girl. On March 18, 2013, Torres texted that he had made a room reservation at Sunset Station for March 25, 2013, and that he had purchased lingerie and would meet the girl at a parking lot. On March 25, detectives arrested Torres when he arrived in the parking lot, and seized from him the telephone that he had used to text and call the detective, as well as a hotel room key, condoms, sexual lubricant, lingerie, and stockings in a small size.
The case was investigated by the Henderson Police Department, and is being prosecuted by Assistant United States Attorney Roger Yang and Special Assistant United States Attorney Allison Herr.
The 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."District Court Enters Permanent Injunction Against Joint King Dietary Supplement Maker to Prevent Distribution of Adulterated SupplementsRead the Press Release
The Justice Department announced today that the U.S. District Court for the Eastern District of New York has entered a consent decree of permanent injunction against Triceutical Inc. and its president, Liqun Zhang, of Farmingdale, New York, to prevent the distribution of adulterated dietary supplements.
According to a complaint filed last month, the defendants violated the Federal Food, Drug, and Cosmetic Act (FDCA) by manufacturing and distributing dietary supplements that were adulterated. Under the FDCA, dietary supplement manufacturers are required to have systems in place to ensure that their products meet specifications for identity, purity, strength and composition. The government’s actions resulted from a series of inspections of Triceutical’s manufacturing facility in Farmingdale, which revealed, among other things, that Triceutical failed to ensure that components, dietary supplements, packaging and labels were not mixed up, contaminated or deteriorated.
In conjunction with the filing of the complaint, the defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction that prohibits them from committing violations of the FDCA. The consent decree requires the dietary supplement manufacturer to cease all operations and requires that if the defendants wish to resume manufacturing dietary supplements in the future, the FDA first must determine that Triceutical’s manufacturing practices have come into compliance with the law. The consent decree was filed with the complaint in June and docketed yesterday.
Triceutical was the manufacturer of Joint King dietary supplement, which was found to contain high levels of Vitamin D. A consumer of Joint King experienced headache, confusion and kidney failure resulting in hospitalization due to Vitamin D toxicity.
The FDA referred this matter to the Department of Justice. The Consumer Protection Branch of the Justice Department’s Civil Division, together with the U.S. Attorney’s Office for the Eastern District of New York, filed this case on behalf of the United States.
Detroit Man Charged with Armed Robbery of Radio Shack StoresRead the Press Release
A federal grand jury in Detroit indicted a Detroit man on charges of robbing two Radio Shack stores at gun point, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Special Agent in Charge Paul M. Abbate, Federal Bureau of Investigation (FBI).
Walter Smith, 19, was charged in an indictment with two counts of Robbery Affecting Interstate Commerce and two counts of Using or Carrying a Firearm During and in Relation to a Federal Crime of Violence. The charges stem from armed robberies of a Radio Shack store in Royal Oak on June 4 and in Royal Oak Township on June 30.
According to court documents, on June 4, 2014, Smith, while armed, entered the Radio Shack located at 29160 Woodward Avenue in Royal Oak, with two other men with pantyhose pulled over their faces, wearing hats and black hooded sweatshirts. The men duct taped the hands and eyes of two victim clerks and a store customer then departed the store with cell phones and cash from the register. On June 30, 2014, Smith, along with another male, entered the Radio Shack located at 8896 West 8 Mile Road in Royal Oak Township, lured an employee to the back of the store, placed a gun to the back of the employee and tied the employee’s hands while the other male suspects stole cell phones from the backroom.
If convicted of all charges, Smith faces a statutory mandatory minimum of thirty- two years in federal prison.
An indictment is only a charge and is not evidence of guilt. It will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being worked jointly by members of the FBI Oakland County Gang and Violent Crimes Task Force; the ATF, Michigan State Police and the Roseville, Sterling Heights, Madison Heights, and Royal Oak Police Departments. It is being prosecuted by Assistant United States Attorney Jeanine Brunson.
Departments of Justice and Education Reach Settlement Agreement with Jefferson Parish Public School System Ensuring Equal Access and Non-Discrimination in SchoolsRead the Press Release
The Departments of Justice and Education announced today that they have reached a comprehensive agreement with the Jefferson Parish Public School System in Louisiana (JPPSS) to ensure that all students can enroll in school regardless of their own national origin or immigration status, or that of their parents or guardians. The agreement also resolves complaints regarding JPPSS’ policies and practices for communicating with parents who have limited English proficiency (LEP) and JPPSS’ response to alleged harassment of Latino students based on their national origin.
“This agreement will ensure that in Jefferson Parish, the doors to school and to opportunity will be open to all children, regardless of background,” said Acting Assistant Attorney General Jocelyn Samuels for the Justice Department’s Civil Rights Division. “We commend the school district for working collaboratively to resolve this matter and for its commitment to making sure that its schools are welcoming and accessible to all students and parents.”
“We applaud Jefferson Parish for ensuring that all students will have access to their public schools and that all parents, regardless of the language they speak, are equipped with the information necessary for their children to fully participate in and benefit from their educational programs,” said Assistant Secretary Catherine E. Lhamon for the Department of Education’s Office for Civil Rights. “We look forward to working with the Department of Justice and the school district to address these crucial civil rights issues.”
Specifically, under the terms of the three-year voluntary agreement, JPPSS will:
· revise enrollment and registration materials and policies before the beginning of the 2014-2015 school year to ensure they do not exclude or discourage students from enrolling based on citizenship or immigration status;
· ensure that parents and students are not asked to produce a social security number, social security card, state-issued identity document or other document that requires proof of citizenship or immigration status in order to enroll or graduate;
· annually train all employees responsible for student enrollment and registration on the revised policies;
· implement a translation and interpretation policy to ensure that LEP parents receive essential information in a language they understand;
· annually train all JPPSS personnel who interact with the public regarding effective communication with LEP parents and what types of information must be translated or interpreted;
· create a bilingual parent advisory committee to make recommendations to JPPSS regarding the educational program for English language learners, registration and enrollment policies, harassment and bullying and communications with LEP parents;
· revise its current policy and practices to ensure that all complaints of discrimination on the basis of race, color or national origin, including allegations of harassment on these bases, are appropriately investigated and resolved;
· provide anti-harassment, anti-bullying and diversity training for the faculty, staff and students of West Jefferson High School, where the alleged harassment and bullying occurred; and
· annually administer a school climate survey at West Jefferson High School to assess the presence of harassment and bullying on the basis of national origin, race and/or color.
The departments will closely monitor the implementation of the agreement to ensure timely and effective implementation and equal opportunity for all students to participate in JPPSS’ educational programs.
On May 8, 2014, the departments released newly-revised guidance documents reminding all school districts of their obligation under federal law to provide equal educational opportunities to all children residing in their districts, regardless of race, color, national origin, citizenship or immigration status or the status of their parents. A copy of the letter can be found on the Department of Education website.
The enforcement of Title VI of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, color or national origin by recipients of federal financial assistance, is a top priority of both departments. The Justice Department also enforces Title IV of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, color, national origin, sex and religion in public schools, and the Equal Educational Opportunities Act of 1974, which requires schools to take appropriate action to overcome language barriers that impede students’ equal participation in instructional programs.
A signed, PDF version of the agreement can be found online in both English and Spanish
The mission of the Office for Civil Rights (OCR) in the Department of Education is to ensure equal access to education and promote educational excellence throughout the nation through the vigorous enforcement of civil rights. OCR is responsible for enforcing federal civil rights laws that prohibit discrimination by educational institutions on the basis of disability, race, color, national origin, sex and age, as well as the Boy Scouts of America Equal Access Act of 2001. Additional information about the office is available at this website
Additional information about the Justice Department’s Civil Rights Division, Educational Opportunities Section, is available at the section's website
Department of Justice Announces New Priorities to Address Surge of Migrants Crossing into the U.S.Read the Press Release
Deputy Attorney General James Cole announced today that the Justice Department will implement a series of steps to help address the influx of migrants crossing the southern border of the United States. These include refocusing immigration court resources to adjudicate the cases of recent migrants; providing support and training to help address violence in Central America; and redoubling efforts to work with other federal agencies and the Mexican government to investigate and prosecute those who smuggle migrants to the United States.
“Individuals who embark on the perilous journey from Central America to the United States are subject to violent crime, abuse, and extortion as they rely on dangerous human smuggling networks to transport them through Central America and Mexico,” Deputy Attorney General Cole said. “We have an obligation to provide humanitarian care for children and adults with children who are apprehended on our borders, but we also must do whatever we can to stem the tide of this dangerous migration pattern. The efforts we are announcing today are intended to address the challenges of this influx in a humane, efficient and timely way.”
Cole announced that the department’s Executive Office for Immigration Review (EOIR) will refocus its resources to prioritize cases involving migrants who have recently crossed the southwest border and whom DHS has placed into removal proceedings -- so that these cases are processed both quickly and fairly to enable prompt removal in appropriate cases, while ensuring the protection of asylum seekers and others.
“This refocusing of resources will allow EOIR to prioritize the adjudication of the cases of those individuals involved in the evolving situation at the southwest border,” said EOIR Director Juan P. Osuna. “Although our case management priorities are shifting, our immigration judges will continue to evaluate and rule upon cases consistent with all substantive and procedural rights and safeguards applicable to immigration proceedings.”
To augment its capacity to adjudicate cases as promptly as possible, EOIR is committed to hiring more immigration judges. EOIR this week will also publish a regulation allowing for the appointment of temporary immigration judges. Further, EOIR plans both to expand its existing legal access programs, and enhance access to legal resources and assistance for persons in removal proceedings.
Cole also announced that the Department is seeking new funding, as a part of the President’s emergency supplemental appropriations request, to assist Central American countries in combatting transnational crime and the threat posed by criminal gangs. This regional strategy for law enforcement capacity building would be aimed at addressing the issues that have been a factor in forcing many migrants to flee Central America for the United States.
The department will also redouble its efforts to work with Mexican authorities to identify and apprehend smugglers who are aiding unaccompanied children in crossing the U.S. border. Later this week, the Deputy Attorney General will also be meeting with the five U.S. Attorneys who represent the southwest border districts to strategize on ways to disrupt and dismantle criminal organizations on the border that are facilitating the transportation of unaccompanied minors and others.
Today, Deputy Attorney General Cole will go to the U.S. Customs and Border Protection’s McAllen Station and processing facility to see the urgent situation at the border. EOIR Director Osuna will be testifying before the Senate Homeland Security and Governmental Affairs Committee to highlight the Justice Department’s efforts to aid in the administration-wide response to the migrant influx.
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Delaware County Business Owner Charged with Fraud Against the United StatesRead the Press Release
PHILADELPHIA – Kenneth Narzikul, 59, of Media, PA was charged today by information with major fraud against the United States, obstruction of audit, and making false claims to the government, in connection with operation of his business, NP Precision, Inc., a machine tool business located in Folcroft PA. .
According to the information, Narzikul was President and 85% owner of NP Precision, responsible for all aspects of NP Precision’s business, which included contracting with federal agencies to produce critical hardware components used in military helicopters and other aircraft. The information charges that as early as 2007, Narzikul began misusing progress payments on contracts with the United States, by failing to pay subcontractors and requesting progress payments under the contracts for costs that NP Precision had not actually incurred, and without the intention of using the progress payments for the costs and contracts at issue, in violation of Federal Acquisition Regulations (FAR). The information charges that Narzikul schemed to fraudulently divert and steal approximately $1.2 million in progress payments that the United States paid NP Precision under two contracts to produce drive shaft couplings for the U.S. Army helicopter Model CH-47, commonly known as a Chinook helicopter. Consequently, it is alleged that the United States received a very belated and many times incomplete product, far later than required under the delivery schedules. According to the information, Narzikul made false statements and caused others at NP Precision to make false statements to government auditors, and made false claims to falsely reflect progress on numerous Army and Air Force contracts and to continue to receive progress payments from the United States. The information charges that, at the direction of Narzikul, NP Precision used the diverted funds to pay outstanding obligations on other contracts and other business and personal expenses of the defendant and his family.
If convicted, the defendant faces a maximum possible sentence of 20 years in prison, three years of supervised release, a fine of up to $1.5 million, and a $300 special assessment. Full restitution of up to approximately $1.2 million also may be ordered.
The case was investigated by the Major Procurement Fraud Unit (MPFU) of the United States Army Criminal Investigative Command (Army CID), the Defense Criminal Investigative
Service (DCIS); and the United States Air Force Office of Special Inspection (Air Force OSI). It is being prosecuted by Assistant United States Attorney Mary E. Crawley.An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Defendants Plead Guilty to Conspiring to Harbor AliensRead the Press Release
Francisco Weinmann-Cervantes, Delia Wong De Weinmann and Ana Cristina Romero- Weinmann pled guilty today in the U.S. District Court for the Southern District of Alabama before the Honorable Judge Callie V.S. Granade to conspiring knowingly to harbor aliens.
Specially, the defendants pled to knowingly and recklessly disregarding of the fact that aliens had come to, entered, and remained in the United States, in violation of the law. The defendant then concealed, harbored and shielded them from detection to enable the aliens they harbored to perform construction work for the defendants and their company for the purpose of private financial gain to the defendants.
The guilty pleas were announced by United States Attorney Kenyen R. Brown of the Southern District of Alabama. The sentence is set for December 8, 2014 at 1:00 pm before Judge Granade.
This case was investigated by Homeland Securities Investigation and prosecuted by Assistant U.S. Attorneys, Gregory A. Bordenkircher and Sinan Kalayoglu.
Dallas Man Sentenced to Serve A Total of 24 Years in Federal Prison for Producing and Possessing Child Pornography Involving A Minor Less Than Two Years OldRead the Press Release
DALLAS — James Brian Rivers, 23, of Dallas, was sentenced this afternoon by U.S. District Judge Sam A. Lindsay to serve a total of 288 months (24 years) in federal prison and 15 years supervised release. He pleaded guilty in January 2014 to an indictment charging one count of production of child pornography and one count of possession of prepubescent child pornography. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made today’s announcement.
Rivers used the camera function on his cell phone to take sexually explicit photos and a video of a 22-month-old child. Rivers left his cell phone at a neighbor’s home in June 2013, and the neighbor looked through the cell phone and observed multiple images of child pornography and called 911. When officers with the Dallas Police Department arrived at the residence, they seized the cell phone and obtained a search warrant for it. A forensic review of the phone revealed multiple images and one video depicting child pornography involving a prepubescent child.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the FBI and the Dallas Police Department. Assistant U.S. Attorney Camille Sparks prosecuted.
Columbia Man Sentenced to Life Plus 10 Years in Drug Conspiracy Involving Robbery/MurderRead the Press Release
Contact Person: Nancy Wicker (803) 929-3000
Columbia, South Carolina -----United States Attorney Bill Nettles stated today that Izell D. Grissett, a/k/a ABuddy@, age 27, of Columbia, South Carolina, was sentenced in federal court by United States District Judge Joseph F. Anderson, Jr. of Columbia. Grissett was sentenced to LIFE imprisonment plus 120 months (10 years) consecutive on charges of conspiracy to distribute more than 5 kilograms of cocaine and more than 280 grams of Acrack@ cocaine, robbery affecting interstate commerce (Hobbs Act), brandishing and discharging a firearm in connection with a crime of violence and a drug trafficking offense (924(c)), possession with intent to distribute 500 grams or more of cocaine and a quantity of “crack” cocaine, and being a felon in possession of a firearm.
Evidence presented at the trial and in other hearings connected to the case, established that from 2005 until his arrest in 2013, Grissett sold multi-kilograms of cocaine and crack cocaine in and around the Columbia area. In 2010, Grissett and a co-defendant (who previously pled guilty and was sentenced to 30 years) robbed their drug suppliers of two kilograms of cocaine. In executing the robbery Grissett shot two persons, killing one person. The second victim sustained life-threatening injuries.
The case was investigated by agents of the Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), Richland County Sheriff=s Department and the City of Columbia Police Department. Assistant United States Attorneys William Witherspoon and Nancy Wicker of the Columbia office handled the case.Chief Executive Officer of Monterey Investment Company Sentenced to Nine Years in Prison for FraudRead the Press Release
SAN JOSE – Barbra Alexander was sentenced today to nine years in prison and ordered to pay $6,306,770.96 in restitution following a trial in which she was convicted for her role in an investment fraud, announced U.S. Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
Alexander was convicted by a jury after a three week trial, on Feb. 26, 2014. She was found guilty for conspiracy to commit mail and wire fraud, mail fraud, wire fraud, and securities fraud. During the trial, evidence showed that Alexander recruited investors into her company, APS Funding, Inc. Alexander promised to invest their money in short-term, high-interest loans, also known as “hard money lending,” for business and real estate development purposes. Instead of investing their money as promised, Alexander used investors’ money to fund her pet projects, such as her syndicated radio show, Moneydots, and to line her own pockets, including paying for her home remodel. In total, during the course of the fraud between 2006 and 2009, Alexander received over $7 million from investors.
Alexander, 66, of Monterey, Calif., along with her two partners at APS Funding, Inc., Michael Swanson, 62, of Seaside, Calif., and Beth Pina, 47, of Fairfield, Idaho, were indicted by a federal grand jury on Oct. 7, 2010. Swanson was convicted after a three week trial on Sept. 3, 2010, for conspiracy to commit mail and wire fraud, mail fraud, wire fraud, and securities fraud by a jury. On May 14, 2014, Swanson was sentenced to 37 months imprisonment, $2,838,100.36 in restitution, a $2,800 Special Assessment, and 3 years of supervised release. Swanson surrendered for service of his sentence on June 27, 2014. Pina pleaded guilty on Dec. 17, 2012 to conspiracy to commit mail and wire fraud. On May 14, 2014, Pina was sentenced to 3 years of Probation, including 12 months of electronic monitoring, and 200 hours of community service. Pina was also ordered to pay a $100 Special Assessment, and restitution in the amount of $625,287.40.
These sentences were handed down by the Honorable Lucy H. Koh, United States District Court Judge, in San Jose. Alexander will begin serving her sentence on Aug. 22, 2014.
Jeff Schenk, Amber Rosen, and Dan Kaleba are the Assistant U.S. Attorneys who prosecuted these cases with the assistance of Nina Burney. The prosecution is the result of an investigation by the Federal Bureau of Investigation, Securities and Exchange Commission, and the Monterey County District Attorney’s Office.
(Alexander indictment )
Chicago Businessman Pleads Guilty to Failing to File Tax ReturnsRead the Press Release
Jaime Viteri, a Chicago businessman, pleaded guilty to two counts of willfully failing to file federal individual income tax returns today, announced the Justice Department and the Internal Revenue Service (IRS).
On June 12, a criminal information was filed in the U.S. District Court for the Northern District of Illinois that alleged Viteri had willfully failed to file individual income tax returns for tax years 2007, 2008 and 2009. According to the plea agreement filed with the district court, Viteri earned and received gross income from his work as the president and chief executive officer of Viteri Inc., doing business as Chicago Latino Network (CLN), a solely owned media company focused on the Latino community in Chicago. Viteri was also an employee and managing director of the Bureau of Entrepreneurship and Small Business at the Department of Commerce and Economic Opportunity, an Illinois state government agency.
Viteri’s gross income from his employment exceeded approximately $270,000 for the 2008 tax year and $290,000 for the 2009 tax year. During these years, Viteri was required to file individual income tax returns and report the gross income he earned. Despite earning and receiving gross income from two different sources, Viteri willfully failed to file individual income tax returns with the IRS for tax years 2008 and 2009 as required by law. Under the terms of the plea agreement, Viteri also agrees to pay restitution to the IRS.
Sentencing is scheduled for Nov. 5, 2014. Viteri faces a statutory maximum sentence of one year in prison per count, one year of supervised release per count and a maximum fine of $100,000 per count.
The case was investigated by special agents from IRS-Criminal Investigation and prosecuted by Trial Attorney Christopher Maietta of the Justice Department’s Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found at the division website .
Buffalo Man Pleads Guilty to Drug ChargeRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Gregory Pendziwiatr, 45, of Buffalo, N.Y., pleaded guilty to conspiracy to possess with intent to distribute and distribute fentanyl, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison, a fine of $5,000,000 or both.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that on January 29, 2013, the defendant drove co-defendant Mary Moran to the RiteAid Store at Harlem and Mineral Springs in West Seneca, N.Y. Pendziwiatr went inside to pick up Moran’s prescription of 10-100 mcg fentanyl patches from the pharmacy. The defendant then drove Mary Moran to 93 Pulaski Street in the City of Buffalo. A second co-defendant, Barbara Moran, came outside to the vehicle and handed Mary Moran cash for her prescription fentanyl patches.
Shortly after Barbara Moran walked back into her residence, it was determined that the RiteAid pharmacy did not fill the prescription with the desired type of fentanyl patches. As a result, Pendziwiatr drove back to 93 Pulaski Street, where Barbara Moran gave the fentanyl patches back to Mary Moran to exchange for patches containing the desired fentanyl gel formulation. The defendant then drove back to RiteAid to exchange the patches. Pendziwiatr then drove Mary Moran back to 93 Pulaski Street to give the replacement patches to Barbara Moran.
Barbara Moran and her sister-in-law, Mary Moran, have also been convicted of conspiracy to possess with intent to distribute and to distribute fentanyl and are awaiting sentencing.
The plea is the culmination of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Acting Special Agent in Charge, New York Field Division, and the Cheektowaga Police Department, under the direction of Chief David Zack.
Sentencing is scheduled for October 14, 2014, at 1:00 p.m. before Judge Arcara.Brazilian Man Pleads Guilty to Firearms Trafficking ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announce that Sergio Carvalho, 50, formerly of Boca Raton and Brazil, pled guilty today to charges of making false statements in a firearm sales record, in violation of Title 18, United States Code, Section 924(a).
Sentencing is scheduled for September 18, 2014 before Chief U.S. District Judge K. Michael Moore in Fort Pierce. At sentencing, Carvalho faces a possible maximum statutory sentence of up to five years in prison.
According to statements made in open court and documents filed in the case, Carvalho together with his colleague Moizes Maia Nogueira, 44, Pembroke Pines, visited a federally licensed firearms dealer named Vincent Olavarria, Jr., 48, Port St. Lucie, on March 30, 2001, in Port St. Lucie. The two men purchased twelve semiautomatic rifles from Olavarria, requesting that Olavarria conceal their names from the firearms sales records. Olavarria agreed to the request, and falsely placed the rifles in the names of other straw purchasers, when completing the sales paperwork required by federal law. Both Nogueira and Carvalho then resold and delivered rifles to Vicente de Paula Vieira, and his son Marcos Barbosa Vieira, two Brazilians who were exporting firearms illegally from the United States to Brazil. Olavarria recruited other straw purchasers to lend their names to false sales records concealing the actual destination of the rifles.
An ATF investigation into the sales records discrepancies led ATF Special Agents to question Carvalho in April 2011 about his purchase of rifles from Olavarria. Carvalho falsely denied knowledge of the rifles. Carvalho also did not volunteer the existence or involvement of Nogueira or the father and son team of the Vieiras, and their respective exports of firearms to Brazil. Following a federal Grand Jury indictment of the defendants in September 2012, all of the other charged defendants have pled guilty and been sentenced by Chief Judge Moore. In June 2013, Olavarria was sentenced to 34 months in prison, and Nogueira was sentenced to 30 months in prison. Straw buyer Darren Cuff, 26, Port St. Lucie, was sentenced in June 2013, to 21 months in prison, and in September 2013, straw buyer Anthony Olavarria, 49, Juana Diaz, Puerto Rico, was sentenced to five months in prison. Both Vicente de Paula Vieira and Marcos Barbosa Vieira have been arrested in Brazil by the Brazilian Federal Police and charged with crimes of firearms importation under Brazilian law.
Carvalho was found and arrested on April 30, 2014, in New Orleans, Louisiana, on the arrest warrant from his indictment in this case, and the U.S. Marshals Service returned him to Fort Pierce to face the pending charges.
This case is a result of Project Safe Neighborhoods (PSN). PSN is a Department of Justice nationwide initiative that combines traditional law enforcement activities with community-based support and intervention programs. The two primary goals of the PSN initiative are to reduce and prevent violent crimes and to help past offenders adjust and re-enter the community.
Mr. Ferrer commended the investigative efforts of ATF and the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
BNP Paribas Pleads Guilty to Conspiring to Violate U.S. Economic Sanctions in Manhattan Federal CourtRead the Press Release
BNP Paribas S.A. (BNPP), a global financial institution headquartered in Paris, pleaded guilty today before U.S. District Judge Lorna G. Schofield in the Southern District of New York to a one-count information charging the bank with conspiring to violate the International Emergency Economic Powers Act (IEEPA) and the Trading with the Enemy Act (TWEA), for its role in processing billions of dollars of U.S. dollar transactions through the U.S. financial system on behalf of Sudanese, Iranian, and Cuban entities subject to U.S. economic sanctions from 2004 through 2012.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Preet Bharara for the Southern District of New York made the announcement.
In accepting BNPP’s guilty plea, the court accepted the plea agreement that had been entered into by the government and BNPP on June 30, 2014, under which BNPP agreed to forfeit a total of $8.8336 billion, pay a criminal fine of $140 million, cooperate with U.S. authorities, and be subject to a five-year term of probation, during which BNPP must enhance its compliance policies and procedures in accordance with settlement agreements BNPP has entered into with its principal U.S. regulators, the Board of Governors of the Federal Reserve System and the New York State Department of Financial Services.
According to the plea agreement, statements made during today’s plea proceeding, and the statement of facts containing further admissions by BNPP, BNPP knowingly and willfully moved more than $8.8 billion through the U.S. financial system on behalf of entities subject to U.S. embargo from 2004 through 2012, including more than $4.3 billion in transactions involving entities that were specifically designated by the U.S. government as being cut off from the U.S. financial system.
BNPP admitted that the majority of illegal payments were made on behalf of sanctioned entities in Sudan, which was subject to U.S. embargo based on the Sudanese government’s role in facilitating terrorism and committing human rights abuses. BNPP processed approximately $6.4 billion through the United States on behalf of Sudanese sanctioned entities from July 2006 through June 2007, including approximately $4 billion on behalf of a financial institution owned by the government of Sudan, even as internal emails showed BNPP employees expressing concern about the bank’s assisting the Sudanese government in light of its role in supporting international terrorism and committing human rights abuses during the same time period. Indeed, in March 2007, a senior compliance officer at BNPP wrote to other high-level BNPP compliance and legal employees reminding them that certain Sudanese banks with which BNPP dealt “play a pivotal part in the support of the Sudanese government which . . . has hosted Osama Bin Laden and refuses the United Nations intervention in Darfur.”
One way in which BNPP processed illegal transactions on behalf of Sudanese sanctioned entities was through a sophisticated system of “satellite banks” set up to disguise both BNPP’s and the sanctioned entities’ roles in the payments to and from financial institutions in the United States. As early as August 2005, a senior compliance officer at BNPP warned several legal, business, and compliance personnel at BNPP’s subsidiary in Geneva that the satellite bank system was being used to evade U.S. sanctions: “As I understand it, we have a number of Arab Banks (nine identified) on our books that only carry out clearing transactions for Sudanese banks in dollars. . . . This practice effectively means that we are circumventing the US embargo on transactions in USD by Sudan.”
Similarly, BNPP admitted that it provided Cuban sanctioned entities with access to the U.S. financial system by hiding the Cuban sanctioned entities’ involvement in payment messages. From October 2004 through early 2010, BNPP knowingly and willfully processed approximately $1.747 billion on behalf of Cuban sanctioned entities. In the statement of facts, BNPP admitted that it continued to do U.S. dollar business with Cuba long after it was clear that such business was illegal in order to preserve BNPP’s business relationships with Cuban entities. BNPP further admitted that its conduct with regard to the Cuban embargo was both “cavalier” and “criminal,” as evidenced by the bank’s 2006 decision, after certain Cuban payments were blocked when they reached the United States, to strip the wire messages for those payments of references to Cuban entities and resubmit them as a lump sum in order to conceal from U.S. regulators the bank’s longstanding, and illicit, Cuban business.
BNPP also admitted to engaging in more than $650 million of transactions involving entities tied to Iran, and this conduct continued into 2012 – nearly two years after the bank had commenced an internal investigation into its sanctions compliance and had pledged to cooperate with the government. The illicit Iranian transactions were done on behalf of BNPP clients, including a petroleum company based in Dubai that was effectively a front for an Iranian petroleum company, and an Iranian oil company.
This case was investigated by the Internal Revenue Service-Criminal Investigation’s Washington Field Division and the FBI’s New York Field Office. This case is being prosecuted by the Money Laundering and Bank Integrity Unit of the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS) and the Money Laundering and Asset Forfeiture Unit of the U.S. Attorney’s Office for the Southern District of New York. Trial Attorneys Craig Timm and Jennifer E. Ambuehl of AFMLS and Assistant United States Attorneys Andrew D. Goldstein, Martin S. Bell, Christine I. Magdo and Micah W.J. Smith of the Southern District of New York are in charge of the prosecution.
The New York County District Attorney’s Office also conducted its own investigation alongside the Department of Justice on this investigation. The Department of Justice expressed its gratitude to the Board of Governors of the Federal Reserve, the Federal Reserve Bank of New York, the New York State Department of Financial Services, and the Treasury Department’s Office of Foreign Assets Control for their assistance with this matter.BNP Paribas Pleads Guilty in Manhattan Federal Court to Conspiring to Violate U.S. Economic SanctionsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Leslie R. Caldwell, Assistant Attorney General for the Justice Department’s Criminal Division, announced that BNP Paribas S.A. (BNPP), a global financial institution headquartered in Paris, pled guilty today before U.S. District Judge Lorna G. Schofield to a one-count Information charging the bank with conspiring to violate the International Emergency Economic Powers Act (IEEPA) and the Trading with the Enemy Act (TWEA), for its role in processing billions of dollars of U.S. dollar transactions through the U.S. financial system on behalf of Sudanese, Iranian, and Cuban entities subject to U.S. economic sanctions from 2004 through 2012.
At today’s proceeding, Judge Schofield accepted the plea agreement that had been entered into by the Government and BNPP on June 30, 2014, under which BNPP agreed to forfeit a total of $8.8336 billion, pay a criminal fine of $140 million, cooperate with U.S. authorities, and be subject to a five-year term of probation, during which BNPP must enhance its compliance policies and procedures in accordance with settlement agreements BNPP has entered into with its principal U.S. regulators, the Board of Governors of the Federal Reserve System, and the New York State Department of Financial Services. Judge Schofield set a sentencing date of October 3, 2014, at 2:00 p.m.
In accepting the bank’s guilty plea, Judge Schofield said: “The defendant’s actions not only flouted U.S. foreign policy, but also provided support to governments that threaten both our regional and national security. And in the case of Sudan, a government that has committed flagrant human rights abuses and has known links to terrorism. I find that the severity of the defendant’s conduct more than warrants the criminal charge to which it has pleaded. . . . The forfeiture amount will surely have a deterrent effect on others that may be tempted to engage in similar conduct, all of whom should be aware that no financial institution is immune from the rule of law.”
According to the plea agreement, statements made during today’s plea proceeding, and the Statement of Facts containing further admissions by BNPP, BNPP knowingly and willfully moved more than $8.8 billion through the U.S. financial system on behalf of entities subject to U.S. embargo from 2004 through 2012, including more than $4.3 billion in transactions involving entities that were specifically designated by the U.S. Government as being cut off from the U.S. financial system.
BNPP admitted that the majority of illegal payments were made on behalf of sanctioned entities in Sudan, which was subject to U.S. embargo based on the Sudanese government’s role in facilitating terrorism and committing human rights abuses. BNPP processed approximately $6.4 billion through the United States on behalf of Sudanese sanctioned entities from July 2006 through June 2007, including approximately $4 billion on behalf of a financial institution owned by the government of Sudan, even as internal emails showed BNPP employees expressing concern about the bank’s assistance to the Sudanese government in light of its role in supporting international terrorism and committing human rights abuses during the same time period. Indeed, in March 2007, a senior compliance officer at BNPP wrote to other high-level BNPP compliance and legal employees reminding them that certain Sudanese banks with which BNPP dealt “play a pivotal part in the support of the Sudanese government which . . . has hosted Osama Bin Laden and refuses the United Nations intervention in Darfur.”
One way in which BNPP processed illegal transactions on behalf of Sudanese sanctioned entities was through a sophisticated system of “satellite banks” set up to disguise both BNPP’s and the sanctioned entities’ roles in the payments to and from financial institutions in the United States. As early as August 2005, a senior compliance officer at BNPP warned several legal, business, and compliance personnel at BNPP’s subsidiary in Geneva that the satellite bank system was being used to evade U.S. sanctions: “As I understand it, we have a number of Arab Banks (nine identified) on our books that only carry out clearing transactions for Sudanese banks in dollars. . . . This practice effectively means that we are circumventing the US embargo on transactions in USD by Sudan.”
Similarly, BNPP admitted that it provided Cuban sanctioned entities with access to the U.S. financial system by hiding the Cuban sanctioned entities’ involvement in payment messages. From October 2004 through early 2010, BNPP knowingly and willfully processed approximately $1.747 billion on behalf of Cuban sanctioned entities. In the statement of facts, BNPP admitted that it continued to do U.S. dollar business with Cuba long after it was clear that such business was illegal in order to preserve BNPP’s business relationships with Cuban entities. BNPP further admitted that its conduct with regard to the Cuban embargo was both “cavalier” and “criminal,” as evidenced by the bank’s 2006 decision, after certain Cuban payments were blocked when they reached the United States, to strip the wire messages for those payments of references to Cuban entities and resubmit them as a lump sum in order to conceal from U.S. regulators the bank’s longstanding, and illicit, Cuban business.
BNPP also admitted to engaging in more than $650 million of transactions involving entities tied to Iran, and this conduct continued into 2012 – nearly two years after the bank had commenced an internal investigation into its sanctions compliance and had pledged to cooperate with the Government. The illicit Iranian transactions were done on behalf of BNPP clients, including a petroleum company based in Dubai that was effectively a front for an Iranian petroleum company and an Iranian oil company.
This case is being prosecuted by the Money Laundering and Asset Forfeiture Unit of the U.S. Attorney’s Office for the Southern District of New York, and the Money Laundering and Bank Integrity Unit of the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS). Assistant United States Attorneys Andrew D. Goldstein, Martin S. Bell, Micah W.J. Smith, and Christine I. Magdo of the Southern District of New York, and Trial Attorneys Craig Timm and Jennifer E. Ambuehl of AFMLS, are in charge of the prosecution.
This case was investigated by the Internal Revenue Service-Criminal Investigation’s Washington Field Division and the Federal Bureau of Investigation’s New York Field Office. The New York County District Attorney’s Office also conducted its own investigation alongside the Department of Justice on this investigation. The Department of Justice expressed its gratitude to the Board of Governors of the Federal Reserve, the Federal Reserve Bank of New York, the New York State Department of Financial Services, and the Treasury Department’s Office of Foreign Assets Control for their assistance with this matter.
Aryan Brotherhood Members Plead Guilty to Federal Racketeering ChargesRead the Press Release
Two Aryan Brotherhood of Texas (ABT) gang members have pleaded guilty to racketeering charges related to their membership in the ABT’s criminal enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Steven Worthey, of San Antonio, Texas, pleaded guilty today before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity. James Lawrence Burns, aka “Chance,” of Dallas, Texas, pleaded guilty to the same charge on July 3, 2014.
According to court documents, Worthey, Burns and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Worthey, Burns and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
By pleading guilty to racketeering charges, Worthey and Burns admitted to being members of the ABT criminal enterprise.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violated the rules or posed a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
Worthey and Burns are both scheduled to be sentenced on Oct. 8, 2014. Each faces a maximum penalty of life in prison.
Worthey and Burns are two of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. To date, 32 defendants have pleaded guilty.
This Organized Crime Drug Enforcement Task Force case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite, Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.
The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Southern District of Texas.Aryan Brotherhood Members Plead Guilty to Federal Racketeering ChargesRead the Press Release
HOUSTON – Two more Aryan Brotherhood of Texas (ABT) gang members have pleaded guilty to racketeering charges related to their membership in the ABT’s criminal enterprise, announced U.S. Attorney Kenneth Magidson and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
Steven Worthey, of San Antonio, pleaded guilty today before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity. James Lawrence Burns, aka “Chance,” of Dallas, pleaded guilty to the same charge on July 3, 2014.
According to court documents, Worthey, Burns and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Worthey, Burns and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
By pleading guilty to racketeering charges, Worthey and Burns admitted to being members of the ABT criminal enterprise.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violated the rules or posed a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.Worthey and Burns are both scheduled to be sentenced on Oct. 8, 2014. Each faces a maximum penalty of life in prison.
Worthey and Burns are two of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. To date, 32 defendants have pleaded guilty.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; sheriff’s offices in Harris, Tarrant, Atascosa, Orange and Waller Counties; police departments in Alvin, Carrollton and Mesquite Texas; as well as the Montgomery and Atascosa County District Attorney’s Offices.The case is being prosecuted by the U.S. Attorney’s Office of the Southern District of Texas and the Criminal Division’s Organized Crime and Gang Section.
Adair County Man Sentenced to 96 Months for Assault with Intent to Commit MurderRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today WILLIE JAMES HALLMARK, 37, of Adair County, Oklahoma, was sentenced to 96 months imprisonment, followed by 3 years of supervised release for Assault with Intent to Commit Murder in Indian Country.
The charges arose from an investigation by the Cherokee Nation Marshal Service and the FBI. HALLMARK was indicted in June 2013 and pled guilty in December 2013.
The indictment alleged that on or about June 6, 2013, within the Eastern District of Oklahoma, WILLIE JAMES HALLMARK, an Indian, did knowingly and intentionally assault two individuals causing injury by stabbing with a knife with the intent to commit a murder, while on land held in Trust, for an individual member of the Cherokee Nation, by the United States of America.
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 Dean Burris represented the United States.
8 July 2014
Wilkes-barre Man Charged with Drug Trafficking OffenseRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that Senior United States District Court Judge A. Richard Caputo has sentenced Alfred Oglesby, age 42, of Wilkes-Barre, Pennsylvania, to three years’ imprisonment for distributing cocaine on numerous occasions between 2010 and April 2, 2013.
According to United States Attorney Peter Smith, Oglesby obtained cocaine from another cocaine distributor in Wilkes-Barre for distribution to others in the Luzerne County area. On February 24, 2014, Oglesby appeared in federal court and pleaded guilty to cocaine distribution. In doing so, he admitted to distributing more than 500 grams of cocaine during the scheme.
In addition to the three-year term of imprisonment, Judge Caputo ordered that Oglesby be placed under the supervision of the United States Probation Office for a period of three years following the service of his prison sentence.
The case was investigated by the Federal Bureau of Investigation; the Pennsylvania Attorney General’s Office; and the Luzerne County District Attorney’s Office. Assistant United States Attorney John Gurganus prosecuted the case.
Wilkes-Barre Man Sentenced to Prison on Drug ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Wilkes-Barre man was sentenced today, in federal court in Wilkes-Barre, by United States District Judge A. Richard Caputo, to serve 18 months in prison on a charge of using a communication device to facilitate heroin trafficking.
According to United States Attorney Peter Smith, Corey Arnott, age 22, a resident of Wilkes-Barre pleaded guilty to the charge in Marchof this year.
Arnott was charged after an investigation conducted by the United States Drug Enforcement Administration, the Pennsylvania State Police and the Wilkes-Barre Police Department. An Indictment was filed against Arnott and twelve other persons on June 4, 2014. The charges against Arnott arose from his involvement in heroin trafficking.
The case was prosecuted by Assistant United States Attorney William S. Houser.
West Haven Men Involved in Cocaine Distribution Ring Are SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that two West Haven residents involved in a cocaine distribution conspiracy were sentenced yesterday in Hartford federal court. U.S. District Judge Alvin W. Thompson sentenced HERNAN VARON-RAMIREZ, also known as “Carlos,” 44, to 60 months of imprisonment and four years of supervised release, and RODRIGO ROMAN, also known as “Bobby,” 41, to approximately 25 months of imprisonment, time already served, and four years of supervised release.
This matter stems from a Drug Enforcement Administration New Haven Task Force investigation that targeted a cocaine distribution organization that was headed by VARON-RAMIIREZ and his associates. The investigation employed several law-enforcement techniques, including the use of confidential informants, controlled purchases of cocaine, physical surveillance and the use of court-authorized wiretaps on cellular telephones utilized by members of the conspiracy.
The investigation revealed that VARON-RAMIREZ, ROMAN and others obtained large quantities of cocaine from sources of supply in the New Haven area and distributed it to drug sellers in and around New Haven. Michael Smith, also known as “Smitty” and “Fingers,” of Hamden, was one of VARON-RAMIREZ’s cocaine customers. Smith converted the cocaine to crack cocaine, which he sold to his own customer base.
VARON-RAMIREZ and ROMAN, who have been detained since May 22, 2012, each previously pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, cocaine.
Following service of his sentence, VARON-RAMIREZ faces deportation to Colombia.
On January 13, 2014, a federal jury in Hartford found Smith guilty of one count of conspiracy to distribute, and to possess with intent to distribute, cocaine and cocaine base (“crack cocaine”), and one count of possession with intent to distribute, and distribution of, cocaine base. He awaits sentencing.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force, including the U.S. Marshals Service and the New Haven, Hamden, West Haven, Branford, Ansonia and Meriden Police Departments. The case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.
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(203) 821-3722 [email protected]Watertown Man Enters Guilty Plea to Firearms and Armed Robbery ChargesRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York announces that ROBERT A. WILLIAMS (22, of Watertown, NY) entered a guilty plea to the felony offenses of being a convicted felon in possession of firearms and ammunition, in violation of Title 18, United States Code, Section 922(g)(1), and using and carrying a firearm during and in relation to a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A). The defendant is facing a statutory maximum of life, a mandatory minimum of 25 years imprisonment and a maximum fine of $250,000.00 per count of conviction. WILLIAMS is scheduled to be sentenced on November 14, 2014, before the Honorable Glenn T. Suddaby in Syracuse, NY.
During the plea hearing on July 8, 2014, WILLIAMS admitted the following. On July 31, 2013 at approximately 12:41 am, WILLIAMS and another male entered Sunoco located at 1222 Washington Street, Watertown, New York intending to commit a robbery. After entering Sunoco, WILLIAMS pointed a sawed-off 12 gauge shotgun at the store clerk and stated “give me your money.” The clerk then opened the cash register drawer and placed approximately $513.00 in United States currency in a store bag. At the same time, the other male removed approximately $395.00 in tobacco products from behind the counter and instructed the clerk to get on the floor.
WILLIAMS further admitted that he had also possessed a Remington rifle and a Savage shotgun at his Watertown residence. In 2012, WILLIAMS was convicted in Jefferson County Court of four counts of Third Degree Burglary.
This prosecution resulted from an investigation conducted by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, Syracuse, New York, the Watertown Police Department and the Metro-Jefferson Drug Task Force. The case was prosecuted by Assistant United States Attorney Ransom P. Reynolds. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315-448-0672).
Virginia-Based Move Management Company Pays More Than $500,000 to Settle Overbilling Claims in Connection with Transportation of Personal Property in Relocating Federal EmployeesRead the Press Release
RE/MAX Allegiance Relocation Services, a Virginia-based move management company, has agreed to pay the government $509,807 to resolve allegations that it violated the False Claims Act by overbilling for transportation services, the Department of Justice announced today.
“Today’s settlement demonstrates our continuing vigilance to ensure that those doing business with the government do so legally and honestly and that taxpayer funds are not misused,” said Assistant Attorney General for the Civil Division Stuart F. Delery. “Government contractors who seek to profit at the expense of taxpayers will be held accountable.”
The settlement relates to allegations involving contracts to transport personal property of federal employees relocating duty stations within the United States and between the United States and Canada. The government alleged that the defendant charged for move management services that were not provided and overbilled agencies on other moves by charging inapplicable tariff rates.
“We encourage whistleblowers to provide us with useful information to help us combat all manners of fraud on the U.S. Government,” said U.S. Attorney for the Eastern District of Virginia Dana J. Boente.
“We will continue to investigate allegations of federal contractors fraudulently maximizing their profits at the expense of American taxpayers,” said U.S. General Services Administration Acting Inspector General Robert C. Erickson.
The settlement resolves allegations filed in a lawsuit by Michael Angel, a former employee of RE/MAX Allegiance Relocation Services, in federal court in Alexandria, Virginia. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The act also allows the government to intervene and take over the action, as it did in this case. Angel will receive $86,667.
The settlement was the result of a coordinated effort by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Eastern District of Virginia, the General Services Administration Office of Inspector General, U.S. Department of Homeland Security Office of Inspector General, Department of Agriculture Office of Inspector General and NASA Office of Inspector General.
The case is captioned United States ex rel. Michael Angel v. Franconia Real Estate Services, Inc., d/b/a RE/MAX Allegiance Relocation Services; No. 1:12cv764 (E.D.Va.). The claims resolved by the settlement are allegations only; there has been no determination of liability.
Two Detroit Men Plead Guilty in Huntington Heroin BustRead the Press Release
HUNTINGTON, W.Va. – Two Detroit men who participated in a conspiracy to distribute heroin in Huntington in 2013 and 2014 pleaded guilty today to federal drug charges, announced U.S. Attorney Booth Goodwin. Denzell Lamar Bunkley, also known as “Chotty” and “King,” 21, pleaded guilty to possession with intent to distribute 100 grams or more of heroin, and Jakaiser Wesley Jackson, also known as “J” and “Jigga,” 21, pleaded guilty to conspiracy to distribute 100 grams or more of heroin. Both pleas were entered before Chief United States District Judge Robert C. Chambers.
On December 31, 2013, officers with the Huntington Police Department’s Special Investigations Unit executed a search warrant at an apartment located at 1416 Jefferson Avenue, in West Huntington. Officers seized approximately 413 grams of heroin and $12,349 in cash during the search. Officers also arrested Bunkley, Christopher Lamarr-Shawn Harris and another individual. Bunkley admitted to possessing the heroin seized for distribution and further admitted that the apartment was utilized by Harris and others as a location to prepare and distribute heroin.
On April 2, 2014, officers executed a search warrant for two rooms at the Red Roof Inn Hotel located on Route 60 in Huntington. Officers seized approximately 192 grams of heroin along with $3,000 in cash during the search. Jackson was present at the hotel just prior to the search. Jackson admitted that he was recruited by Harris in January 2014 to assist with heroin distributions in Huntington. Jackson also admitted that he, along with Harris, arranged to transport the heroin from Detroit in the days prior to the search.
Harris, also of Detroit, also pleaded guilty today to his role in the conspiracy.
Bunkley and Jackson each face five to 40 years in federal prison when they are sentenced on October 6, 2014.
The Huntington Police Department Special Investigations Unit, the West Virginia State Police, the United States Drug Enforcement Administration, and the United States Marshals Service all participated in the investigation. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This case is being 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 heroin and prescription drugs. The U.S. 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 opiates, including heroin, in communities across the Southern District.
Two Alabama Men Sentenced for Stolen Identity Refund Fraud Crimes in Separate CasesRead the Press Release
Deundra Milhouse and Fredrick Hill, both residents of Alabama, were sentenced today in separate stolen identity refund fraud (SIRF) cases, announced Acting Assistant Attorney General Tamara Ashford of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama. Milhouse was sentenced to serve 81 months in prison and Hill was sentenced to serve 74 months in prison.
Deundra Milhouse Case
Milhouse previously pleaded guilty to one count of access device fraud, one count of aggravated identity theft and one count of being a felon in possession of a firearm. He was indicted in December 2013 and has been detained since his arrest in late January. According to his plea agreement, Milhouse was involved in SIRF crimes—using stolen identities to steal money from the Internal Revenue Service (IRS) by filing fraudulent tax returns claiming refunds in the victims’ names—from spring 2011 through late 2013. In 2011 and 2012, Milhouse received more than $80,000 in fraudulently obtained tax refunds into a bank account he controlled. By 2013, he switched to using prepaid debit cards to receive the refunds.
Milhouse admitted in his plea agreement that he was driving a car that was stopped on Oct. 8, 2013, in Elmore County, Alabama. He managed to flee on foot and threw away a handgun that he had been carrying. At that time, Milhouse was a convicted felon prohibited from having a firearm. Numerous prepaid debit cards and documents with personal identifying information were found in the car he was driving. Milhouse also admitted that a later search of his house uncovered many more documents with the personal identifying information of victims, as well as more than 200 prepaid debit cards, a computer used to file tax returns and a magazine and ammunition for the discarded handgun. As part of his plea, Milhouse stipulated that his conduct involved an attempted fraud loss of more than $400,000 to more than 250 victims and that he had a least one felony conviction for a crime of violence prior to his possession of the handgun.
Fredrick Hill Case
Hill previously pleaded guilty to access device fraud and aggravated identity theft. According to his plea agreement, Hill sold stolen identities to others to be used in SIRF crimes. Hill admitted that at one point he possessed dozens of prepaid debit cards and more than 300 stolen identities in connection with his involvement in SIRF crime.
Both cases were investigated by special agents of IRS - Criminal Investigation. The Elmore County Sheriff’s Office also provided assistance in the Milhouse case. Trial Attorneys Jason Poole and Michael Boteler of the department's Tax Division prosecuted the Milhouse case and Trial Attorneys Jason Poole and Gregory Bailey prosecuted the Hill case. Assistant U.S. Attorney Todd Brown and the U.S. Attorney’s Office for the Middle District of Alabama assisted with both cases.
Additional information about the Tax Division and its enforcement efforts may be found at the division website .
Two Alabama Men Sentenced for Stolen Identity Refund Fraud Crimes in Separate CasesRead the Press Release
Montgomery, Alabama - Deundra Milhouse and Fredrick Hill, both residents of Alabama, were sentenced today in separate stolen identity refund fraud (SIRF) cases, announced Acting Assistant Attorney General Tamara Ashford of the Justice Department’s Tax Division and U.S. Attorney George L. Beck, Jr. for the Middle District of Alabama. Milhouse was sentenced to 81 months in prison and Hill was sentenced to 74 months in prison.
Milhouse had previously pleaded guilty to one count of access device fraud, one count of aggravated identity theft, and one count of being a felon in possession of a firearm. He was indicted in December 2013 and has been detained since his arrest in late January 2014. According to his plea agreement, Milhouse was involved in SIRF crimes—the use of stolen identities to steal money from the Internal Revenue Service (IRS) by filing fraudulent tax returns claiming refunds in the victims’ names—since the spring of 2011 and up through late 2013. In 2011 and 2012, he received over $80,000 in fraudulently obtained tax refunds into a bank account he controlled. By 2013, he had switched to using prepaid debit cards to receive the refunds.
Milhouse also admitted in his plea agreement that he was driving a car that had been stopped on October 8, 2013, in Elmore County, Alabama. He managed to flee on foot and threw away a handgun that he had been carrying. Milhouse was a convicted felon at that time and prohibited from having a firearm. Numerous prepaid debit cards and documents with personal identifying information were found in the car he had been driving. Milhouse also admitted that a later search of his house uncovered many more documents with the personal identifying information of victims, as well as over 200 prepaid debit cards, a computer used to file tax returns, and a magazine and ammunition for the discarded handgun. As part of his plea, Milhouse had stipulated that his conduct involved an attempted fraud loss of over $400,000, more than 250 victims, and that he had a least one felony conviction for a crime of violence prior to his possession of the handgun.
Hill had previously pleaded guilty to access device fraud and aggravated identity theft. According to his plea agreement, Hill sold stolen identities to others to be used in SIRF crimes. Hill admitted that at one point he possessed dozens of prepaid debit cards and over 300 stolen identities in connection with his involvement in SIRF crime.
Both cases were investigated by special agents of the Internal Revenue Service - Criminal Investigation. The Elmore County Sheriff’s Office also provided assistance in the Milhouse case. Trial Attorneys Jason Poole and Michael Boteler of the Department's Tax Division prosecuted the Milhouse case and Trial Attorneys Jason Poole and Gregory Bailey prosecuted the Hill case. Assistant United States Attorney Todd Brown and the U.S. Attorney’s Office for the Middle District of Alabama assisted with both cases.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Three Men Arrested and Charged with Conspiracy to Possess and Distribute over 3,300 Pounds of MarijuanaRead the Press Release
Oklahoma City, Oklahoma – Federal agents with the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms & Explosives, and U.S. Immigration and Customs Enforcement Homeland Security Investigations have arrested MANUEL BARRON-HERNANDEZ, 40, a Mexican national, JUAN CARLOS SALINAS, 19, a U.S. citizen whose address is unknown, and ROBERTO OLIVAS-CHAVEZ, 31, a Mexican national, and charged them with conspiracy to possess with intent to distribute over 3,300 pounds of marijuana, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. A fourth defendant JESUS ISAAC RODRIGUEZ-CONTRERAS, 40, a Mexican national, was also charged in a separate related criminal complaint with being an illegal alien unlawfully in possession of these firearms and ammunition.
According to court records, on June 25th, 2014, members of the DEA Oklahoma City Task Force conducted an investigation involving surveillance of a storage building located at 4140 SW 149th Street in Oklahoma City and residences located at 1050 Whispering Lane, in Newcastle, and 2648 SW 38th Street, in Oklahoma City. Agents executed a search warrant at the storage unit where the three defendants were detained during the execution of the warrant. According to the complaint affidavit, agents observed 42 large blue garbage dumpsters stacked in the building and, after a drug certified dog was alerted to the odor of illegal drugs, a second search warrant was obtained. Upon execution of the second warrant, the affidavit states that agents located and seized 3,319 packages of marijuana weighing approximately one pound each secreted in the bottom portion (false floor) of the 42 dumpsters.
As part of this investigation, court records indicate that agents also conducted a search of a residence at 3705 S. Villa Avenue, in Oklahoma City, where they located six assault style rifles, a .22 caliber rifle, and over 800 rounds of ammunition. Agents arrested Rodriguez-Contreras for being an illegal alien unlawfully in possession of these firearms. He is charged in a separate criminal complaint.
All four defendants have appeared before a United States Magistrate. Barron-Hernandez, Olivas-Chavez, and Rodriguez-Contreras remain in custody. Salinas was released on bond.
This case is the result of an investigation by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives and U.S. Immigration and Customs Enforcement Homeland Security Investigations, and was assisted by the District-21 Drug Task Force, McClain County Sheriff’s Office, and the Oklahoma City Fire Department which was instrumental in providing manpower and equipment necessary to the discovery and seizure of the 3319 bundles of marijuana. These cases are being prosecuted by Assistant U.S. Attorneys David P. Petermann and Ashley L. Altshuler.
The public is reminded that these charges are merely accusations and that the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to the criminal complaints and other public filings for further information.
Three Lincoln County Men Sentenced for Oxycodone TraffickingRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Joseph James Salmons was sentenced to two years in federal prison and two other men, Richard A. Mullins and John Freddie Joe Johnson, were sentenced to three years’ probation on charges relating to the distribution of oxycodone in Lincoln County. United States District Judge John T. Copenhaver, Jr., imposed the sentences.
Salmons, 24, of Hamlin, previously pleaded guilty to aiding and abetting the distribution of oxycodone, admitting that on February 13, 2013, he and Mullins sold a confidential information five 30 mg oxycodone pills. Salmons also admitted to other drug sales in Lincoln County.
Mullins, 49, of West Hamlin, previously pleaded guilty to distributing oxycodone. Mullins admitted that on January 13, 2013, he sold 5 30 mg oxycodone pills to a confidential informant working with law enforcement. Mullins met the informant in the parking lot of the Blossom Junction flower shop in West Hamlin and conducted the drug deal from his car. Mullins also admitted during his plea hearing to other drug sales in Lincoln County.
Johnson, 37, also of West Hamlin, previously pleaded guilty to assisting Mullins and Salmons in selling oxycodone to a confidential informant outside of Johnson’s residence in West Hamlin, Lincoln County, in February 2013.
The Huntington Violent Crime and Drug Task Force investigated the case. Assistant United States Attorney Monica D. Coleman was in charge of the prosecution.
This case was 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 U.S. 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 in communities across the Southern District.
Tennessee Woman Pleads Guilty to Defrauding Pittsburgh CompanyRead the Press Release
PITTSBURGH – A Tennessee woman has pleaded guilty in federal court to a charge of mail fraud, United States Attorney David J. Hickton announced today.
Elizabeth “Betsy” Pope, 49, of Loudon, TN, pleaded guilty to one count before United States District Judge Donetta W. Ambrose.
According to the information presented to the court, Pope was in business to assist trucking companies with compliance and testing of their commercial truck drivers pursuant to the Drug and Alcohol Testing Program of the Federal Motor Carrier Safety Administration (FMCSA) of the U.S. Department of Transportation. The program includes pre-employment and random testing, testing for cause and post-accident testing. The Pittsburgh-based victim is InTransit, LLC, an administrative and service company for several national transport companies. InTransit used Pope d/b/a Eastgate Laboratory Testing as a third party administrator to handle the DOT drug and alcohol testing for them. DOT regulations require that a percentage of negative tests and all positive drug or alcohol tests must be reviewed by a licensed doctor, known under the DOT regulations as a Medical Review Officer (MRO), to oversee the program and determine if there were any innocent reasons why a test was positive. On all FMCSA and DOT required paperwork Pope, without authority or permission, used a computer generated signature of a doctor who had previously worked for her as an MRO for a short time predating the charges in the indictment to create the impression that he had done the necessary oversight and reviews when he had not. The fraud came to light when a commercial truck driver with 18 years of experience tried to contact the MRO after his pre-employment drug test reported as “diluted” for three consecutive tests. When he was unable to get the contact information from Pope for the MRO, he searched for the MRO on the internet. The MRO in turn contacted InTransit to report the unauthorized use of his name. InTransit conducted an internal investigation and referred the matter to the Inspector General for the Department of Transportation. Pope billed InTransit as though her company had actually performed the all required services, causing InTransit to send her checks totaling approximately $109,000.
Judge Ambrose scheduled the sentencing for Nov. 4, 2014. The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government. The U.S. Department of Transportation-OIG conducted the investigation that led to the prosecution of Elizabeth Pope.
Tax Return Preparer, Jacqueline J. Arias, Pleads Guilty as Part of Tax Fraud, Money Laundering ConspiraciesRead the Press Release
United States Attorney Kenneth Allen Polite, Jr. and Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department's Tax Division announced that JACQUELINE J. ARIAS, 39, a tax return preparer from Spruce Pine, Alabama, pleaded guilty today before U.S. District Judge Helen Ginger Berrigan to one count of conspiracy to defraud the United States, five counts of mail fraud, and one count of money laundering conspiracy. As part of her plea, ARIAS admitted to her role in a years-long scheme to defraud the United States by filing false income tax returns that fraudulently claimed large tax refunds. ARIAS, her husband, her tax preparation business, and nineteen other individuals, all of them foreign nationals, have been charged as part of the case. To date, sixteen defendants have entered guilty pleas to various charges.
According to court documents, ARIAS and her co-conspirators filed false returns listing Individual Taxpayer Identification Numbers (ITINs). An ITIN is a tax processing number issued by the Internal Revenue Service (IRS) to individuals who do not have, and are not eligible to obtain, a social security number. As alleged in the second superseding indictment, ARIAS was a Certified Acceptance Agent, entrusted by the IRS with the responsibility of reviewing the documentation of an ITIN applicant’s identity and alien status for authenticity, completeness and accuracy before submitting an application to the IRS. The indictment charged that ARIAS filed false applications for ITINs, in addition to false income tax returns, and collected preparation fees from the fraudulently-obtained tax refunds. The indictment also charged ARIAS with filing false tax returns for her corporation, JB Tax Professional Services, and for herself individually.
For each of the mail fraud and money laundering conspiracy charges, ARIAS faces a maximum term of twenty years’ imprisonment. ARIAS also faces a maximum term of imprisonment of five years for conspiring to defraud the United States. All of the charges to which ARIAS pleaded guilty carry the possibility for fines, restitution, and forfeiture. As part of her plea agreement, ARIAS admitted that her actions caused at least $1 million in loss to the government, although she acknowledged that the government would present evidence of a larger loss at her sentencing. ARIAS further agreed to forfeit nearly $400,000 in United States currency seized as part of the case.
“Defrauding the government in the fashion this defendant pleaded guilty to has a direct, negative impact on law-abiding taxpayers,” said Special Agent in Charge Raymond R. Parmer Jr., ICE Homeland Security Investigations (HSI) in New Orleans. “The money stolen from the government in this case might have been used to feed hungry children, pay our soldiers or make needed repairs on a local highway. HSI stands ready with our partners at the IRS and other agencies to hold those who seek to enrich themselves at the expense of others through tax fraud and other criminal schemes accountable for their actions.”
The case was investigated by U.S. Immigration and Customs Enforcement, which oversees Homeland Security Investigations; IRS-Criminal Investigation; the U.S. Secret Service; the U.S. Postal Inspection Service; and the Social Security Administration, Office of the Inspector General, in partnership with the St. Tammany Parish, La. and Jefferson Parish, La. Sheriffs’ Departments. The case was prosecuted by Department of Justice, Tax Division Trial Attorneys Hayden Brockett and Kevin Lombardi and AUSA David Haller.
Statement of Manhattan U.S. Attorney Preet Bharara on the Acquittal of Rengan RajaratnamRead the Press Release
“While we are disappointed with the verdict on the sole count that the jury was permitted to consider, we respect the jury trial system whatever the outcome, and we thank the jury for their service. This Office maintains its faith in the criminal justice system, a system that has resulted in the convictions by trial or guilty plea of 85 other defendants on insider trading charges. We will continue to seek justice in the investigation and prosecution of those who violate the securities laws of the United States.”
Slippery Rock Man Pleads Guilty to Child Pornography ChargesRead the Press Release
PITTSBURGH - A Butler County resident pleaded guilty in federal court to charges of receipt and possession of materials depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Mark Beres, 54, formerly of Slippery Rock, Pa., pleaded guilty to two counts before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that on July 1, 2008, Beres knowingly received visual depictions of minors engaged in sexually explicit conduct by computer and the United States Mail. In addition, the indictment charges that on or about April 23, 2013, Beres knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct.
Judge Conti scheduled sentencing for Oct. 31, 2014, at 10 a.m. The law provides for a total sentence of 30 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation that led to the prosecution of Beres.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Sex Offender Living in Willimantic Sentenced to Prison for Illegally Reentering U.S. After DeportationRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOSE DE LA CRUZ AJQUI, 27, a citizen of Guatemala last residing in Willimantic, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 12 months of imprisonment for illegally reentering the U.S. after he was deported.
According to court documents and statements made in court, DE LA CRUZ AJQUI entered the U.S. illegally in 2005 and settled in Willimantic. In September 2007, he was charged and subsequently convicted in Connecticut state court of sexual assault of a minor in the second degree. DE LA CRUZ AJQUI received a sentence of five years of incarceration execution, suspended after nine months, and 10 years of probation. He was also required to register as a sex offender for a period of 10 years.
DE LA CRUZ AJQUI was deported to Guatemala in May 2009. By his own admission, he illegally reentered the U.S. less than two months later and returned to Willimantic.
On October 7, 2011, DE LA CRUZ AJQUI was arrested by the Connecticut State Police in Woodstock for evading responsibility, operating a motor vehicle while under the influence of alcohol, and illegally operating a motor vehicle. He also was found in possession of marijuana. However, DE LA CRUZ AJQUI provided a false identity at the time of this arrest. His illegal presence in the country was not detected in until May 7, 2013, when he was arrested by the Willimantic Police Department for failing to appear on the charges and his true identity was determined. On December 6, 2013, he was sentenced in state court to five years of incarceration, execution suspended after one year, with 10 years of probation for violating his probation.
On March 25, 2014, DE LA CRUZ AJQUI pleaded guilty in federal court to one count of illegal reentry of a removed alien.
This matter was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations. The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
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U.S. ATTORNEY'S OFFICE
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