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8 July 2014
Sex Offender Enters Guilty Plea for Failing to Register in OrangeburgRead the Press Release
Contact Person: Bill Day (803) 929-3000
Columbia, South Carolina -----United States Attorney Bill Nettles stated today that Tyrone King, a/k/a “Tyrone Leonard,” age 39, of Orangeburg, South Carolina, has entered a guilty plea in federal court in Columbia, to Failure to Register as a Sex Offender, a violation of 18 U.S.C. § 2250(a). United States District Judge J. Michelle Childs of Columbia accepted the guilty plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that King was convicted in September 2008 for Committing a Lewd Act on a child Under 16 Years Old in South Carolina. After serving his sentence, King resided in North Carolina but failed to register as a sex offender and committed Common Law Robbery so was sentenced again in June 2012. When King was paroled in September 2013, he absconded his supervision and moved to Orangeburg without registering as a sex offender in either North or South Carolina. King was arrested in Orangeburg on April 4, 2014.
Mr. Nettles stated the maximum penalty for Failure to Register as a Sex Offender is imprisonment for 10 years and/or a fine of $250,000.
The case was investigated by agents of the U.S. Marshal. Assistant United States Attorney William E Day, II of the Columbia is prosecuting the case.Sex Offender Attempting to Use Alleged “Loophole” in Law Sentenced for Failing to RegisterRead the Press Release
Pocatello - Jeramie McGuire, 36, of Big Piney, Wyoming, was sentenced to 12 months and one day in prison for failing to register as a sex offender, U.S. Attorney Wendy J. Olson announced. United States District Judge Edward J. Lodge also ordered McGuire to serve ten years of supervised release. McGuire pleaded guilty to the charge on April 14, 2014.
According to court records, McGuire is required to register as a sex offender due to a third degree felony rape conviction in Oregon in 1998. In May 2013, McGuire travelled from Big Piney, Wyoming, to Pocatello, Idaho, and began working and residing there until arrested on October 23, 2013. At no time while living and working in Idaho did McGuire register with the state of Idaho. McGuire admitted to law enforcement when arrested that he was attempting to avoid registration through “loopholes” in the law by travelling between Idaho, Utah, and Wyoming.
The case was investigated by the Pocatello Police Department and the U.S. Marshals Service (USMS). McGuire was prosecuted for a violation of the Sex Offender Registration and Notification Act (SORNA) passed by Congress in 2006. The Act requires sex offenders to register and keep their registration current in each jurisdiction where they reside. Violations of SORNA can be prosecuted in federal court.
Russian Hacker Wanted in Seattle, Washington Arrested in GuamRead the Press Release
ROMAN SELEZNEV, a Russian national indicted in the Western District of Washington for a computer hacking scheme that compromised the financial accounts of credit card customers, was arrested in Guam on July 6, 2014 by law enforcement agents from the U.S. Secret Service.
SELEZNEV was indicted in March 2011 for multiple counts of Bank Fraud, Intentional Damage to a Protected Computer, Obtaining Information from a Protected Computer, Possession of Fifteen or More Unauthorized Access Devices, Trafficking in Unauthorized Access Devices, and Aggravated Identity Theft related to a computer hacking scheme that occurred between October 2009 to February 2011 within the Western District of Washington and elsewhere. The superseding indictment from the Western District of Washington details, among other things, a bank fraud scheme in which SELEZNEV is charged with hacking into retail point of sale systems and installing malicious software on the systems to steal credit card numbers. The indictment further alleges that SELEZNEV created and used infrastructure to further the theft and sales of credit card data, and used servers worldwide to facilitate the operation.
SELEZNEV appeared before the Honorable Joaquin V.E. Manibusan, Magistrate Judge of the U.S. District Court of Guam, on July 7, 2014 for his initial appearance, and was remanded to the custody of the U.S. Marshals Service pending a further hearing set for July 22, 2014.Alicia A.G. Limtiaco stated, “The United States Attorney’s Office for the Districts of Guam and the Northern Mariana Islands is committed to working with our law enforcement partners and community of United States Attorney’s Offices, to combat against cybercrime, data theft and financial crimes, and to hold offenders accountable and ensure that they are brought to justice.”
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Reneelinette P. Mesa and Ok Ja Cho Sentenced Today in the District Court of GuamRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that Defendants RENEELINETTE P. MESA, age 33, and OK JA CHO, age 47, were sentenced today in the District Court of Guam by Judge Ramona Manglona, for their roles in making and passing counterfeit currency on Guam.
Defendant MESA was sentenced for the offense of Making Photographs in the Likeness of U.S. Currency. Defendant CHO was sentenced for Dealing in Counterfeit U.S. Obligations and Securities. Defendant MESA and co-defendant Michael Badar (who will be sentenced later) made counterfeit currency and passed them at various businesses throughout Guam. They were discovered when a vendor at Micronesian Mall called Mall Security when Defendant CHO attempted to pass one of the counterfeit notes. The vendor led the Mall Security Officers to CHO. Mall Security detained CHO until the Guam Police Department (GPD) and the U.S. Secret Service (USSS) responded. Defendant CHO confessed that day and led United States Secret Service to Badar and Defendant MESA. Agents recovered the materials they used to produce the counterfeit currency in garbage bags to be thrown out.
Defendant MESA was sentenced to 14 months imprisonment, five years supervised release, and 125 hours community service. Defendant MESA was also ordered to pay restitution to the victims who filed claims. Defendant CHO was sentenced to time served, with credit for seven months and eight days, three years supervised release, 200 hours community service and was ordered to report her conviction to the U.S. Department of Homeland Security, U.S. Citizenship & Immigration Services.
Credit for the investigation is given to the Micronesian Mall Security, officers of the Guam Police Department, and special agents of the U.S. Secret Service. The case was handled by Assistant U.S. Attorney Clyde Lemons.Operation "megabusted" Defendant, Andre Addison, Pleads GuiltyRead the Press Release
U.S. Attorney Kenneth Allen Polite, Jr. announced that ANDRE ADDISON, a resident of New Orleans, pled guilty today to possession with intent to distribute heroin. On August 2, 2013, ADDISON was one of fifteen defendants charged in a seventeen-count superseding indictment for Violations of the Controlled Substances Act. All fourteen defendants in custody have now pled guilty including: BYRON M. EVANS, a/k/a “B-Boy”; YULIAN GABRIEL VERA-OLIVEROS, a/k/a “Luis Angel Jimenez,” a/k/a “Paco”; ALVARO HERNEY CORTES, a/k/a “Ezequiel Padilla Romero,” a/k/a “Cookie”; JOVAN PATTERSON, a/k/a “Moon”; WILLIAM ROBERTSON III, a/k/a “Lil Will”; BRADLEY S. WILLIAMS, a/k/a “B”; KEYING EVANS, a/k/a “Mingo”; THEODIS HUDSON, a/k/a “Chicken”; DOMINIQUE BROWN, a/k/a “D”; ROBERT LEON JOHNSON a/k/a “Rob”; DAVON CHRISTOPHER MOSLEY, a/k/a “Lob”; ANDRE COSTIMINA ADDISON, a/k/a “Dooda”; KERRY B. MOLIERE, a/k/a “Duke”; SHEILA JENKINS, and FRANKLYN F. PHILLIP, a/k/a “Dre,” a/k/a “Jr.”. ALVARO HERNEY CORTES, one of two Columbian Foreign Nationals indicted, remains an active fugitive.
According to court documents, the investigation – entitled “Operation Megabusted” -- revealed that a heroin trafficking organization, led by EVANS, was responsible for distributing kilogram quantities of heroin and cocaine between Houston, Texas, and New Orleans, Louisiana. This organization was supplied by two Columbian Foreign Nationals illegally present in the United States. Various couriers for this drug trafficking organization transported kilogram quantities of heroin and cocaine from Houston to New Orleans via the Megabus and other methods of transportation. Upon arrival in New Orleans, the heroin and cocaine were distributed throughout New Orleans, Avondale, St. Charles Parish, and Hattiesburg, Mississippi. In total, this organization is responsible for the distribution of approximately 30 kilograms of heroin and cocaine over the span of a two year period.
This case was investigated by the New Orleans Gang Task Force (NOGTF) which includes members of the New Orleans Police Department (NOPD), Jefferson Parish Sheriff’s Office (JPSO), and the St. Tammany Police Sheriff’s Office (STPSO). Also assisting in the investigation were members of the Houston Police Department (HPD)/HIDTA Task Force; Hattiesburg 12-NET Task Force; St. Charles Sheriff’s Office; and the Hattiesburg District Attorney’s Office. The case was prosecuted by Assistant United States Attorney J. Collin Sims.
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Northfield Man Pleads Guilty to Distributing Child PornographyRead the Press Release
MINNEAPOLIS — Last week in federal court, a 42-year-old Northfield man pleaded guilty to one count of Distribution of Child Pornography. Charles Edward Bracken, who was indicted on October 8, 2013, entered his guilty plea before United States District Judge Richard H. Kyle on July 2, 2014.
In his plea agreement, Bracken admitted that on September 16, 2010, he distributed a computer image depicting two minor boys engaged in sexually explicit conduct. The defendant also admitted that he possessed on his laptop computer approximately 21,541 images and more than 574 videos of child pornography, some of which portrayed sadistic or masochistic conduct or other depictions of violence. The defendant distributed these images through an Internet file- sharing program.
For his crime, Bracken faces a possible maximum sentence of 20 years in federal prison. Judge Kyle will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Karen B. Schommer.
This case was brought as part of Project Safe Childhood (“PSC”), 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 U.S. Attorney offices and the Justice Department’s Criminal Division, Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”North Carolina Drug Supplier to Henrico Drug Dealers Sentenced to 24 Years in PrisonRead the Press Release
RICHMOND, Va. – Carlos A. Cooke, age 38, of High Point, North Carolina, Virginia, was sentenced to 24 years in prison on his guilty plea to conspiring to distribute more than 5 kilograms of cocaine.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, Shannon L. Taylor, Commonwealth Attorney for Henrico County; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration, Washington Field Division and Douglas A. Middleton, Chief of Henrico Police Division, made the announcement after the sentencing before United States District Judge Henry E. Hudson.In the Statement of Facts signed as part of his guilty plea, Cooke admitted that from 2007 to 2013 he distributed between 5 and 15 kilograms of cocaine from North Carolina to dealers in Henrico and Urbanna, Virginia. He would negotiate on the telephone to supply those dealers with distribution quantities of cocaine, typically as high as 375 grams at a time. Tomeka Wimbush, age 36, of Martinsville, Virginia, would transport the drugs to the Virginia dealers, and then return with the proceeds, which she gave to Cooke. Wimbush was sentenced on August 5, 2014 to 51 months in prison.
This case is part of an 18-month OCDETF investigation, Operation Carolina and Back, that targeted Cooke and his Virginia customers. In addition to Cooke and Wimbush, 8 Henrico dealers and 1 Urbanna dealer have pled guilty to drug trafficking charges. Darryl Delaney, a Henrico dealer, was sentenced to 156 months’ imprisonment; Gordon Shelton, also a Henrico dealer, was sentenced to 120 months’ imprisonment. The other Henrico dealers, Stevenson Silencieux, Charles Kates, Kevin Lee, Kelley Brown, Eric Wingate and Donte Beard, are awaiting sentencing. Charles Epps, the Urbanna dealer, is also awaiting sentencing.
This case was investigated by the Henrico County Commonwealth Attorney’s Office, the Drug Enforcement Administration, and the Henrico Police Division. David T. Maguire, Assistant United States Attorney and Matthew C. Ackley, Special Assistant United States Attorney and Henrico County Regional Drug Prosecutor, are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-030.Tweet
Norridgewock Man Pleads Guilty to Child Exploitation and Pornography ChargesRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Patrik
Arsenault, 27, most recently of Norridgewock, Maine, pleaded guilty today in U.S. District Court in Bangor to sexual exploitation of a minor and transportation, receipt and possession of child pornography. He was indicted on the charges on October 16, 2013.
According to court records, in June and July of 2013, the defendant, a former special education teacher, sexually abused three minors and recorded images and videos of the abuse. The defendant then sent recordings of the abuse of two of the minors, as well as other images of child pornography, to several e-mail trading partners. The defendant also received images of child pornography from his trading partners. On August 21, 2013, law enforcement agents seized a hard drive during the execution of a search warrant at the defendant’s residence. A forensic examination revealed videos of the defendant’s abuse of the two minors and over 7,500 images and 250 videos depicting child pornography.
“I would like to thank my agents for their tireless efforts, in pursuing those individuals who would use their position of trust to carry out these unthinkable acts”, said Bruce Foucart, special agent in charge of U.S. Immigration and Customs Enforcement’s Homeland Security
Investigations (HSI) in Boston. “I would also like to thank our partners in the Maine State Police
Internet Crimes Against Children (ICAC) unit for their constant support and dedication in tackling these disturbing types of crimes.”
Arsenault faces a mandatory minimum of 15 years and up to 30 years in prison on the sexual exploitation charges, a minimum of 5 years and up to 20 years in prison on the transportation and receipt of child pornography charges, and up to 20 years in prison on the child pornography possession charge. He also faces a fine of up to a $250,000 on each count. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation
Office.
The investigation was conducted jointly by HSI, the Maine State Police, and the Maine
State Police Computer Crimes Unit. 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 U.S. Attorneys’ 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 exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Morris County, N.J., Man Admits Defrauding Investers of $500,000 Through Phony Investment SchemeRead the Press Release
NEWARK, N.J. – A Morris County, N.J., man today admitted he fraudulently obtained $500,000 by promising investors favorable returns and that funds would be used to finance educational television programming for teenage audiences, U.S. Attorney Paul Fishman announced.
Peter Lareau, 77, of Mountain Lakes, N.J., pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count of wire fraud.
According to documents filed in this case and statements made in court:
From June 2008 through January 2010, Lareau created numerous entities, including T4Teens LLC and Concordia Mediaworks LLC, for the purpose of soliciting investors. Lareau recruited investors through civic, religious and charitable organizations, as well as through alumni events at prestigious education institutions.
In addition to promising greater-than-market returns, Lareau falsely represented that investors’ funds would be used for educational television programming for teenage audiences.
He sent investors prospectuses and other information related to investment opportunities by email and then directed them to wire funds from brokerage accounts in New York to his business accounts in New Jersey.Instead of using the funds for educational programming or other business-related purposes, Lareau used those funds for personal expenses, including groceries, tuition payments for his child, rent payments, and club memberships.
The wire fraud charge carries a maximum potential penalty of 20 years in prison and a maximum fine of $250,000. Sentencing is scheduled for Oct. 14, 2014.
U.S. Attorney Fishman credited special agents from the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s plea.
The government is represented by U.S. Attorney Lorraine S. Gerson of the Economic Crimes Unit in Newark.
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Defense counsel: K. Anthony Thomas Esq., Assistant Federal Public Defender, Newark
Lareau, Peter Information
Milwaukee Man Sentenced to Prison for Filing False Federal Income Tax ReturnsRead the Press Release
United States Attorney James L. Santelle announced that on July 2, 2014, Prince Rashada (45) of Milwaukee, WI, was sentenced to 24 months imprisonment for filing false federal tax returns based on an indictment issued in 2008.
Rashada fled the United States after the indictment was returned. In 2013, he was located by the United States Marshals Service. Rashada devised and executed a scheme to obtain payment of false claims for refunds from the Internal Revenue Service. The scheme encompassed the 2004, 2005 and 2006 tax years and involved Rashada electronically filing 72 fraudulent claims for federal refunds totaling approximately $277,000.
Rashada recruited unemployed individuals to file the returns. He portrayed himself as a legitimate tax preparer and told individuals who thought they could not file due to their unemployment that they could. Rashada then made up a wage amount and occupation to list on the tax returns. After receiving the refund, he paid the recruited individuals a portion of the funds and kept the remainder, typically a fee of $1,000, for himself. Rashada was also ordered to pay restitution to the IRS totaling approximately $160,000 for the losses incurred.
This case was investigated by the Internal Revenue Service Criminal Investigation and the United States Marshal’s Service. The case was prosecuted by Assistant United States Attorney Lisa A. Wesley.
Mexican Pair Pleads Guilty to Debit/Credit Card Conspiracy in $35K McAllen Shopping SpreeRead the Press Release
McALLEN, Texas – Mary Carmen Vaquera-Garcia, 27, and Daniel Dominguez-Guardiola, 28, both of Mexico, have entered guilty pleas to conspiring to use debit/credit cards with the intent to defraud, announced U.S. Attorney Kenneth Magidson.
Vaquera and Dominguez admitted today that on Jan. 12, 2014, they went on a $35K+ shopping spree in McAllen using unauthorized Lone Star National Bank Visa card accounts. The pair intended to sell the fraudulently-purchased merchandise in Mexico for a profit. Vaquera further admitted to wiring money overseas to obtain stolen account information for the cards and to hiring Dominuez to help her use the cards.
The magnetic strips on the fake cards had been encoded with stolen, real account information for other people’s accounts that the defendants were not authorized to use. The names on the front of the fake cards were associated with false male and female identities that the defendants were using. Therefore, a retailer simply checking the name on an ID against the front of the card might not have been able to detect the fraud.
Vaquera-Garcia and Dominguez-Guardiola were arrested on Jan. 19, 2014, on several outstanding warrants as they attempted to re-enter the U.S. through the Anzalduas Port of Entry. A total of 96 counterfeit cards were found hidden in Dominguez’s waistband.
As part of their plea agreements, the defendants agreed to pay restitution and forfeiture in the amount of $35,422.21 and to forfeit several items that were seized from them on the day of their arrest, including hundreds of dollars in currency and gift cards.
Chief U.S. District Judge Ricardo H. Hinojosa, who accepted the guilty pleas, has set sentencing for Sept. 24, 2014. At that time, each defendant faces up to 10 years in federal prison and a possible $250,000 maximum fine. They will remain in custody pending that hearing.
This case was investigated by the Secret Service with the assistance of the McAllen Police Department. Assistant U.S. Attorney Christopher Sully is prosecuting.
Mexican National Sentenced for Growing Marijuana on Public LandsRead the Press Release
BOISE - Gilberto Duran-Contreras, 51, of Mexico, was sentenced today to 30 months in prison for unlawfully manufacturing more than 1,000 marijuana plants, and damage to government land, U.S. Attorney Wendy J. Olson announced. United States District Judge Edward J. Lodge also ordered the defendant to pay $33,265 in restitution for cleanup of the site, forfeit $68,000 in cash and firearms, and pay a $200 special assessment. Duran-Contreras pleaded guilty on April 22, 2014.
According to the plea agreement, Duran-Contreras admitted he had worked in the growing operation on Little Beaver Creek where law enforcement officers had removed 5,463 marijuana plants. Duran-Contreras, a citizen of Mexico, was arrested on September 15, 2013, on Hwy 21 near Lowman, a few miles from an outdoor marijuana growing operation on Little Beaver Creek in the Boise National Forest. Four days earlier, his co-defendants Marcos Solano-Farias, Jose Misael Ayala-Talavera, and Carlos Cerda-Carpio, who have all pleaded guilty, were arrested in a related outdoor marijuana growing operation with 1,411 live plants on Rabbit Creek. Investigators found and seized two semi-automatic handguns, and an AK-47 type rifle at the Rabbit Creek camp. Firearms had also been present at the Little Beaver Creek camp. At both locations, investigators found several hundred marijuana plants that had already been harvested from the 2013 growing operation. Law enforcement officers have located and eradicated all live marijuana plants from these growing operations. At the time Duran-Contreras was arrested, he was illegally present in the United States. He will be deported to Mexico after serving his prison sentence.
Co-defendant Mariah Villasenor-Rodriguez recently pleaded guilty to possession of more than 100 kilos of processed marijuana at her premises in Caldwell. She will be sentenced 2 on August 7, 2014. Villasenor-Rodriguez is the wife of lead co-defendant, Juan Pablo Villasenor-Villa, who is set for trial on September 29, 2014.
All defendants were indicted by a federal grand jury on October 9, 2013, on charges of conspiracy to manufacture and distribute marijuana, possession of firearms in furtherance of drug trafficking, and injury to federal public lands. The other three co-defendants who have pleaded guilty are set for sentencing on October 15, 2014.
The charge of manufacturing more than 1,000 marijuana plants carries a penalty of not less than ten years and up to life in prison, a maximum fine of $10 million, and five years of supervised release. The charge of injury to government property is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release. Possession of more than 100 kg is punishable by not less than five years and up to 25 years in prison, a maximum fine of $5 million and up to three years of supervised release.
“Vigorous prosecution of those who grow illegal drugs on federal land is a high priority of this office,” said Olson. “Those who operate marijuana grows not only traffic in illegal drugs, but they also damage wildlife and the environment and, through their possession and possible use of firearms, pose a significant danger to all Idahoans who seek to use our national forests for hiking, hunting and recreation purposes.”
The case is the result of a joint investigation result of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Drug Enforcement Administration, Bureau of Land Management, and United States Forest Service, with assistance from the Ada County Sheriff’s Office, Boise County Sheriff’s Office, Boise Police Department, City County Narcotics Unit (Canyon County Sheriff’s Office and Caldwell Police Department), the Idaho National Guard, Meridian Police Department, Nampa Police Department, Spokane Police Department, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and Washington State Police.
The OCDETF program is a federal, multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Mescalero Apache Woman Pleads Guilty to Federal Assault Charges Arising out of Drive-By ShootingRead the Press Release
ALBUQUERQUE – Julianna Rosynelle Venego, 28, a member and resident of the Mescalero Apache Nation, pleaded guilty this afternoon to two federal assault charges under a plea agreement with the U.S. Attorney’s Office.
Venego and her brother Rufus Juan Lester, 22, were arrested in July 2013, based on a criminal complaint alleging assault with dangerous weapons charges. In Oct. 2013, Venego was indicted on two counts of aiding and abetting assaults with dangerous weapons. Lester was indicted in a separate case in Nov. 2013 and charged with eight counts of assault with a dangerous weapon and one count of discharging a firearm during and in relation to a crime of violence. According to court filings, Venego and Lester committed the offenses charged in the two cases on Nov. 24, 2012, when Venego drove a vehicle in which Lester was a passenger while Lester used two firearms to fire eight shots at a residence located within the Mescalero Apache Reservation.
During today’s proceedings, Venego entered a guilty plea to both counts in the indictment and admitted driving Lester past a residence while he used two firearms to shoot at the residence. She acknowledged that the residence was occupied by two adults and six children during the drive-by shooting.
Venego was remanded into federal custody after entering her guilty plea and will remain detained pending her sentencing hearing, which has yet to be scheduled. At sentencing, Venego faces a statutory maximum penalty of ten years in prison.
Lester entered a guilty plea on May 16, 2014, to all eight of the assault charges in the indictment against him, and admitted assaulting the eight individuals who were in the residence when he fired shots at the residence. Lester has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. Under the terms of his plea agreement, Lester will be sentenced to 66 months in federal prison followed by a term of supervised release to be determined by the court.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.Mercer County Man Gets 8+ Years in Prison for Federal Child Pornography OffenseRead the Press Release
CHARLESTON, W.Va. – Johnny Richard Rowe, of Bluewell, Mercer County, West Virginia, was sentenced today to eight years and a month in prison for a federal child pornography offense, announced U.S. Attorney Booth Goodwin. Rowe, 61, previously pleaded guilty in January to possessing child pornography. Rowe’s sentence was handed down by Senior United States District Judge David A. Faber.
An investigation conducted by the West Virginia Internet Crimes Against Children Task Force revealed that Rowe possessed 728 images and 14 videos of child pornography. The images depict prepubescent minors and minors engaged in sexual acts. The child pornography was discovered on Rowe’s computer and on a flash drive located at his residence in Bluewell. The investigation also revealed that Rowe received and shared child pornography by using a file sharing network that allows users to download files from other people’s computers around the world.
U.S. Attorney Goodwin stated, “The exploitation of innocent children is a heinous crime. Child pornography has a highly destructive impact on the most vulnerable segment of society and my office will work diligently to ensure that criminals like Mr. Rowe are prosecuted to the fullest extent.”
The West Virginia Internet Crimes Against Children Task Force, the Mercer County Sheriff’s Department, and the West Virginia State Police conducted the investigation. Assistant United States Attorney Lisa Johnston handled the prosecution.
This case was prosecuted as part of U.S. Attorney Goodwin’s ongoing initiative to combat sexual exploitation and abuse in the Southern District of West Virginia.
Medical Device Inventor Sentenced to Prison for Tax FraudRead the Press Release
Ashvin Desai, of San Jose, California, was sentenced yesterday to serve six months in prison and six months and one day of home confinement for concealing more than $8 million in foreign bank accounts, the Justice Department and Internal Revenue Service (IRS) announced. Prior to yesterday’s sentencing hearing, Desai filed with the court a document indicating that the IRS has assessed and demanded payment of a Reports of Foreign Bank and Financial Accounts (FBAR) penalty against him for $14,229,744.
In October 2013, a jury convicted Desai, a medical device manufacturer, of failing to report his family’s foreign bank accounts to the government on tax returns and FBARs. The jury also found that Desai failed to disclose more than $1.2 million in interest income generated by these accounts between 2007 and 2009. Desai was sentenced by U.S. District Judge Edward J. Davila.
According to the evidence presented in court, Desai controlled several foreign bank accounts at HSBC in India and Dubai, including accounts held in the name of his wife and adult children. Desai invested the funds in these accounts in certificates of deposit, which earned interest at rates as high as nine percent. Desai funded these accounts by mailing checks from the United States and by transferring money from other undeclared bank accounts in Singapore and the United Kingdom to his family’s accounts in India. Desai also sold medical devices abroad, and, on at least one occasion, directed that his customer wire funds directly to his undeclared HSBC India account.
Between 2007 and 2009, Desai paid approximately $17,000 in taxes. However, Desai owed an additional $357,783 in taxes to the IRS on his unreported interest income. Desai’s deposits into his foreign accounts also far exceeded the income he disclosed on his tax returns each year. In 2008, for example, he deposited nearly $1.1 million into foreign accounts while only reporting income of $115,810.91 on his tax return.
The evidence at trial demonstrated the steps Desai took to conceal his family’s foreign accounts from the government. In addition to failing to report his accounts on tax returns and FBARs, Desai also directed the bank not to mail bank statements to his house. On one occasion, Desai wrote an email in which he asked an HSBC banker: “Why are all the statements coming to Home address? I thought we had a different arrangement.”
This case was investigated by IRS-Criminal Investigation and prosecuted by Trial Attorney Melissa Siskind of the Tax Division.
Marinette Business Owner Pleads Guilty to Tax Evasion in Federal CourtRead the Press Release
United States Attorney James L. Santelle announced that a Marinette business man pleaded guilty to tax evasion in federal court in Green Bay yesterday. Pursuant to a plea agreement, Joseph Wilke (age 56) pleaded guilty to evading taxes he owed in 2007. As part of his plea agreement, Wilke, who operates a heating and air conditioning business in Marinette, acknowledged that during the years 2007 - 2009 he failed to report more than $130,000 of income he earned from a side-business and, thereby, under reporting his federal taxes by more than $50,000.
Based on his plea, Wilke faces up to 5 years in prison and a fine of up to $250,000. As part of his plea, Wilke also agreed to make full restitution to the IRS for his unpaid taxes, interest, and penalties, which total more than $108,000. Wilke is scheduled to be sentenced on September 29, 2014. He was released on bond pending his sentencing.
The case was investigated by the Internal Revenue Service Criminal Investigation. The case was prosecuted by Assistant United States Attorney Matthew L. Jacobs.
Man Pleads Guilty to Filing False ClaimsRead the Press Release
MINNEAPOLIS— Last week in federal court, a man pleaded guilty to submitting false tax returns to the Internal Revenue Service. On July 1, 2014, Dusten Lee Barth pleaded guilty to one count of False Claims and one count of Aggravated Identity Theft. Barth, who was indicted on March 3, 2014, entered his guilty plea before United States District Court Judge Paul A. Magnuson.
According to the plea agreement, Barth admitted to preparing and submitting approximately 10 fraudulent tax returns to the Internal Revenue Service (“IRS”), claiming over $43,000 in false tax refunds. The defendant also admitted to using the identities of several other individuals to submit a false tax return in their names.
For his crimes, Barth faces a potential maximum penalty of five years in federal prison and a fine of up to $250,000 for the False Claims count and a two year mandatory, consecutive prison sentence for the Aggravated Identity Theft count Judge Magnuson will determine his sentence at a future hearing, which is yet to be scheduled.
This case is the result of an investigation by the IRS Criminal Investigation Division. It is being prosecuted by Assistant U.S. Attorney Surya Saxena.Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.
Lummi Tribal Member Sentenced to Five Years in Prison for use of a Firearm During a Crime of ViolenceRead the Press Release
A member of the Lummi Tribe was sentenced today in U.S. District Court in Seattle to five years in prison and three years of supervised release for use of a firearm during a crime of violence, announced U.S. Attorney Jenny A. Durkan. WESLEY JOHN GIBBS, 53, of Bellingham, Washington was arrested in September 2013, following a fight with another tribal member. At sentencing Chief U.S. District Judge Marsha J. Pechman said that GIBBS’ use of guns and his threatening others within the community has got to stop.
According to records filed in the case, on September 3, 2013, GIBBS and the victim were socializing at a home on the Lummi Reservation. The men got into an argument. GIBBS went into a bedroom of the home, grabbed an assault rifle and returned, pointing the loaded, but inoperable rifle at the victim and threatening to shoot him. GIBBS cocked the weapon so that it appeared he was ready to fire. The victim was able to flee the house without injury.
The case was investigated by the Lummi Tribal Police and the FBI. The case was prosecuted by Assistant United States Attorney J. Tate London.
Loretto Man Pleads Guilty to Lying About Employees’ WagesRead the Press Release
MINNEAPOLIS—Today in federal court, a 52-year-old Loretto man pleaded guilty to felony false statements in connection with prevailing wage violations. Jeffrey John Plzak was charged on June 17, 2014, and entered his plea this morning in Minneapolis before United States District Court Judge Patrick J. Schiltz.
As set forth in the plea agreement, Plzak and his spouse run Honda Electric, Inc., a company based in Loretto, Minnesota. Honda Electric bids on construction projects, including highway and road projects, that are federally and state funded. Many of the projects Plzak bid on required that Honda Electric pay its electricians and other laborers the prevailing wage rate.
On numerous occasions, Plzak won bids based in part on the representation that Honda Electric employees working on the project would receive prevailing wage. Those projects required periodic submission by Honda Electric of a certified payroll report. In those reports, Plzak knew Honda Electric, at his direction, was representing to the United States Department of Transportation – Federal Highway Administration and to the Minnesota Department of Transportation that Honda Electric’s employees were being paid the required prevailing wage.
In fact, as Plzak knew, in many instances employees were being paid less than half of the prevailing wage rate. In total, Plzak admitted that over a series of projects between 2010 and 2013, Honda Electric underpaid its employees over $271,000.
For example, Plzak admitted that in a certified payroll report dated September 24, 2010, Honda Electric stated it was paying prevailing wage on a federally funded project in Ramsey County, when, in fact, he knew the employees were receiving far less than prevailing wage.
“When contractors lie about paying prevailing wage, workers, competitors, and taxpayers all lose,” said United States Attorney Andrew M. Luger. “Workers are underpaid, competitors who played by the rules are underbid, and the wrongdoer makes off with taxpayer dollars meant for honest employers. We thank the outstanding work done by the Minnesota Department of Transportation and the FBI in investigating these and other prevailing wage violations.”
As a result of his plea, Plzak faces up to five years in prison, repayment of unpaid wages, and a fine of up to $250,000 or twice the loss amount, whichever is greater. Plzak will be sentenced at a later date.
This case is the result of an investigation by the Minnesota Department of Transportation’s Labor Compliance Unit and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney David M. Genrich.Large-Scale Distributor of Unapproved Foreign Prescription Drugs IndictedRead the Press Release
ALEXANDRIA, Va. – James Quinn, 73, of Surrey, United Kingdom, was indicted yesterday by a federal grand jury for his alleged involvement in the illegal shipments of non-FDA approved prescription drugs to co-conspirators in the United States. Quinn, along with two companies in the United Kingdom and Switzerland that he controls, were charged with five felony counts and he is due to appear before U.S. District Court Judge Liam O’Grady for arraignment on Aug. 18, 2014.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Antoinette V. Henry, Special Agent in Charge of FDA’s Office of Criminal Investigations (OCI); Clark Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Washington; Gary Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Karl C. Colder, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Washington Field Division; and M. Douglas Scott, Arlington County Chief of Police, made the announcement.
According to the indictment, Quinn served as a supplier of non-FDA-approved drugs through his Switzerland-based company, Atlantic Pharmaceuticals AG, and he served as a trans-shipper of non-FDA-approved drugs through his United Kingdom-based company, World Medical Limited. The indictment alleges that, as a trans-shipper, Quinn received non-FDA-approved drugs from countries such as India and the United Arab Emirates, broke those shipments into smaller packages, affixed false customs declarations and sent the packages to the United States on behalf of co-conspirators who sold non-FDA-approved drugs to medical practices across the United States. Quinn’s co-conspirators are alleged to have included Gallant Pharma International Inc., which pleaded guilty in the Eastern District of Virginia to 12 felony offenses on Dec. 2, 2013, and Pharmalogical Inc. (d/b/a Medical Device King), whose co-owners, William Scully and Shahrad Rodi Lameh, are awaiting trial on a 73-count indictment in the Eastern District of New York.
Quinn and his companies, World Medical Limited and Atlantic Pharmaceuticals AG, were charged in the Eastern District of Virginia with the following offenses: conspiracy, which is punishable by a maximum penalty of five years in prison; importation contrary to law, which is punishable by a maximum term of 20 years in prison; two counts of felony introduction of misbranded drugs into interstate commerce, each of which are punishable by a maximum term of three years; two counts of misdemeanor introduction of misbranded drugs into interstate commerce, each of which are punishable by a maximum term of one year; and unlicensed medical wholesaling, which is punishable by a maximum term of ten years.
The investigation was conducted by FDA-OCI, DEA’s Group 33 Diversion Task Force, ICE-HSI and the U.S. Postal Inspection Service, with assistance from the Arlington County Police Department. Assistant U.S. Attorneys Lindsay A. Kelly, Maya Song and Jay Prabhuare prosecuting the case.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-277.
Kodiak Man Sentenced to Four Consecutive Life Sentences for Murder of Coast Gaurd Employees in KodiakRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced that today, Chief District Court Judge Ralph Beistline sentenced James Michael Wells to four consecutive life sentences for the murders of U.S. Coast Guard Electrician’s Mate First Class James Hopkins and retired Chief Boatswain’s Mate Richard Belisle on April 12, 2012. Both Hopkins and Belisle, who was working a Coast Guard civilian employee, were murdered at U.S. Coast Guard Communications Station Kodiak.
Wells, 63, of Kodiak, was convicted after a 19-day jury trial on all six counts of the indictment: two counts murder in the first degree, in violation of 18 U.S.C. § 1111, one for each victim; two counts of murder of an officer or employee of the United States, a violation of 18 U.S.C. § 1114, one for each victim; and two counts of possession and use of a firearm in relation to a crime of violence, a violation of 18 U.S.C. § 924(c).
Wells was given one life sentence for the murder of Richard Belisle, counts 1 and 3 of the indictment, and a second consecutive life sentence for the murder of Petty Officer James Hopkins, counts 2 and 4 of the indictment. Wells was also given 2 additional consecutive life sentences, one for each victim, for using a firearm to commit the murders. There is no possibility of parole.
In a brief statement, Wells said that he was innocent, a claim rejected by Chief Judge Beistline: “There’s one thing I know, James Wells is a cold-blooded murderer. Any objective person would reach the same conclusion.” He found that Wells acted out of “anger, envy, and jealousy,” murdering his “competition” because he “could not compete” in the workplace anymore. He noted that Wells has showed no remorse, and that this level of “extreme criminal conduct” called for the maximum sentence.
Chief Judge Beistline also commented that the wives of both murdered men had attended the entire trial, and conducted themselves in a way that showed their strength of character.
Ms. Loeffler commended the strength and fortitude of the Belisle and Hopkins families throughout the investigation and the trial. She also commended the thoroughness and professionalism of the investigation, led by the Federal Bureau of Investigation, with support from the Coast Guard Investigative Service, and the Alaska State Troopers.
U.S. Attorney Karen L. Loeffler prosecuted the case along with Assistant U.S. Attorney Bryan Schroder, and Captain Kathleen A. Duignan, U.S. Coast Guard, who was appointed as a Special Assistant U.S. Attorney, with support from Assistant U.S. Attorney Bryan Wilson.Judges Sentences Coraopolis Man to 24 Months in Prison for Possessing Child PornographyRead the Press Release
PITTSBURGH – An Allegheny County man pled guilty and has been sentenced in federal court to 24 months imprisonment, to be followed by 20 years of supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on Daniel Lewis Dolde, 44, of Coraopolis, Pa.
According to information presented to the court, on or about May 10, 2012, Dolde possessed visual depictions, namely, videos and images in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Department of Homeland Security – Homeland Security Investigations for the investigation leading to the successful prosecution of Dolde.
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.
John Tebbetts Sentenced in Federal CourtRead the Press Release
Owner of Tebbs Head shops Sentenced to 87 Months
SYRACUSE, NEW YORK – RICHARD S. HARTUNIAN, United Sates Attorney, Northern District of New York, announces that JOHN TEBBETTS, age 34, of Rome, NY, was sentenced today in U.S. District Court in Syracuse to 87 months imprisonment, followed by 3 years of supervised release, for distributing synthetic drugs from his 12 head shops.
As part of his plea, TEBBETTS admitted to owning several Tebbs head shops in Central New York and Maine, as well as a warehouse in Oneida. TEBBETTS admitted that he possessed the Schedule I controlled substances: AM-2201, JWH-122, JWH-203, and JWH-250, all synthetic cannabinoids (commonly referred to as “Spice” or “K2”) with the intent to distribute these products. TEBBETTS also admitted to possessing controlled substance analogues (synthetic cathinones, commonly known as “Bath Salts”) with the intent to distribute them and intending that these substances be used for human consumption. Lastly, TEBBETTS admitted to purchasing a 2012 motor home for over $157,000.00 which was cash proceeds from his illegal sale of controlled substances and controlled substance analogues. As part of his plea, TEBBETTS agreed to forfeit six vehicles, including the motor home, and over $314,000.00.
These prosecutions resulted from a lengthy investigation undertaken in the spring of 2012 by the Syracuse Resident Office of the Drug Enforcement Administration (DEA), along with the Onondaga County Sheriff’s Office, and the Department of Homeland Security.
Further questions or inquiries may be directed to Assistant United States Attorney Carla Freedman, the prosecutor handling the case, at (315) 448-0672.
Illegal Re-entry Defendant SentencedRead the Press Release
Contact Person: Bill Day (803) 929-3000
Columbia, South Carolina -----United States Attorney Bill Nettles stated today that ABIZAHI GARDUNO-RIVERA, a/k/a “Afrain Guzman,” age 34, of Mexico, was sentenced in federal court in Columbia, South Carolina, for Illegal Re-Entry. United States District Judge Childs of Columbia, South Carolina sentenced to eighteen months in federal custody to be followed by three years supervised release. The Defendant is also required to surrender for Deportation by Homeland Security when he completes his sentence.
Evidence presented at the change of plea hearing established that Garduno-Rivera is a citizen of Mexico and was initially deported in October 1998. In September 2002, he was located in Georgia where he was serving a 12 year sentence for Trafficking in Cocaine. Following completion of his sentence, Garduno-Rivera was again deported in May 2006. On September 5, 2013, he was arrested by the Aiken County Sheriff's office for Trafficking Methamphetamine, Possession of Hydrocodone, and 3 counts of Possession of a Weapon During a Violent Crime. The U.S. Department of Homeland Security - Bureau of Immigration and Customs Enforcement (ICE) was contacted when it was discovered Garduno-Rivera was in the United States illegally.
Mr. Nettles stated the maximum penalty for illegal re-entry is imprisonment for 20 years and/or a fine of $250,000.
The case was investigated by the Aiken County Sherriff's Office and ICE. Assistant United States Attorney William E. Day, II of the Columbia is prosecuting the case.Illegal Alien Charged with Possessing Ammuntion and False Social Security CardRead the Press Release
PITTSBURGH - A resident of East Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of possession of ammunition by an illegal alien and use of a false social security number, United States Attorney David J. Hickton announced today.
The two-count indictment named Guillermo Manuel Justo, a/k/a Rolando Velez Latorre, 38, as the sole defendant.
According to the indictment, on May 28, 2014, the defendant, an illegal alien, unlawfully possessed 81 rounds of .40 caliber Smith and Wesson ammunition and a social security card which falsely identified him as Rolando Velez Latorre.
The law provides for a maximum total sentence of 15 years in prison, a fine of $500,000 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 Leo M. Dillon is prosecuting this case on behalf of the government.
Homeland Security Investigations conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Inmate Sentenced for Possessing Homemade Knife in McDowell Federal PrisonRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that a federal inmate was sentenced to fifteen additional months in federal prison for possessing a weapon while incarcerated. Billy Williams, 25, pleaded guilty last March, admitting that in October 2013, he possessed a homemade knife, commonly called a shank, while he was serving time at the Federal Correctional Institution at McDowell. Senior United States District Judge David A. Faber imposed the sentence and ordered that it run consecutively to the 120-month sentence that Williams is already serving for, among other offenses, assault with intent to kill while armed.
The case was investigated by the Federal Bureau of Prisons and was prosecuted by Assistant United States Attorney John File.
Hogsett Announces Guilty Plea of Postal Employee on Child Exploitation ChargesRead the Press Release
"Operation Community Watch" prosecution allegedly involves thousands of images and videos
EVANSVILLE B Joseph H. Hogsett, the United States Attorney, announced today that a former postmaster at the Elberfeld Post Office branch entered a plea of guilty of possession and receiving child pornography. Floyd M. Thompson, age 60, of Evansville, appeared in federal court today in front of U.S. District Chief Judge Richard Young.
"Those who accept the responsibility of public trust and betray it, will be held accountable for their actions. Additionally, we are unwavering in our resolve to find and prosecute those who exploit our children," Hogsett said. "As this case shows, you are not anonymous online - if you engage in this behavior, you will be identified and you will be prosecuted."
According to charging documents, law enforcement first began their investigation in June 2013, when an undercover member of the Federal Bureau of Investigation's Southern Indiana Child Exploitation Task Force connected with a computer that was allegedly sharing sexually-explicit images depicting young children. After downloading a number of these files from the user, investigators traced the online activity to a home in Evansville.
As a result of this information, a federal search warrant was executed on August 13, 2013, at the Evansville home of defendant Thompson. Federal agents interviewed Thompson and took his computer equipment into custody. A preliminary forensic examination of these computers allegedly revealed thousands of images and videos of child pornography depicting young girls between the ages of 3 and 12 years old.
Acting Special Agent in Charge Kevin P. Lyons, “The FBI remains committed to protecting children from individuals that prey on their innocence.”
According to Assistant U.S. Attorney Todd Shellenbarger, who is prosecuting the case for the government, Thompson faces up to twenty years in federal prison. A sentencing date has been scheduled for August 10, 2014 at 11:00 a.m. In addition, the defendant also could be sentenced to a lifetime term of supervised release at the end of his prison term, as well as registration as a sexual offender.
This arrest comes as Hogsett has announced a comprehensive crackdown on child exploitation in Indiana. Over a year ago, he launched "Operation Community Watch," which allows prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials. In this case, these efforts were facilitated by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Evansville Police Department.
This case was brought as part of Project Safe Childhood, a larger nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Hogsett pointed out that in the last Project Safe Childhood reporting year, the Office prosecuted 65 defendants, an increase of 25 over the prior year.
The greatest measure of the PSC program's impact, however, is the identification and rescue of child victims of sexual exploitation and abuse. Over the last year, the U.S. Attorney's Office successfully identified more than 120 child victims, including minors in Indiana, numerous places in the United States, Canada, Switzerland, and other countries around the world.
Led nationally by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Gun Store Owner Convicted of Firearms ViolationRead the Press Release
VICTORIA, Texas – Garrett Vincent Riedesel, 25, of Victoria, has entered a guilty plea to one count of possession of an unregistered firearm, announced United States Attorney Kenneth Magidson.
Riedesel, a federal firearms licensee, owned Garrett’s Gun Vault in Victoria at the time of his arrest. The store is now closed.
Riedesel admitted he was in possession of a Remington Model 870, 12-gauge shotgun which had a barrel length of more than seven inches and an overall length of nearly 15 inches. A check of the National Firearms Registration and Transfer Record (NFRTR) revealed that the firearm was not registered to Riedesel.
The investigation began after customers reported having trouble retrieving firearms that had been dropped off at Riedesel’s establishment for repair.
On March 13, 2014, a federal search warrant was executed at Garrett’s Gun Vault in Victoria. At that time, agents seized 117 firearms that were not properly logged into Riedesel’s acquisition and disposition books as required by federal law. Four of the weapons seized were required to be registered in the NFRTR, including the shotgun Riedesel admitted to possessing as part of his guilty plea today.
Senior U.S. District Judge John D. Rainey has set sentencing for Oct. 6, 2014. At that time, Riedesel faces up to 10 years in federal prison and a possible $250,000 maximum fine. He was ordered to remain in custody pending that hearing.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Texas Department of Public Safety. Assistant U.S. Attorney Patti Hubert Booth is prosecuting.
Ghanian National Sentenced to 13 Years in Prison for Heroin Distribution ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced George Frimpong Ebo-Amissah, a/k/a “Salifu Abdullah,” and “Wagba,” age 46, a Ghanian national, today to 13 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Chief James W. Johnson of the Baltimore County Police Department; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According to Ebo-Amissah’s plea agreement, beginning in 2011, Ebo-Amissah was one of the leaders of a conspiracy to distribute heroin in Maryland. Ebo-Amissah, who was living in Ghana, arranged couriers who would transport heroin on commercial flights to the United States. During the investigation, law enforcement intercepted telephone calls between Ebo-Amissah and Nana Boateng, a U.S. based heroin trafficker. Ebo-Amissah had numerous conversations with Boateng about importing heroin into the United States, including details about obtaining heroin in Ghana and how much a particular courier could bring to the United States.On May 29, 2011, a courier that Ebo-Amissah had hired to bring heroin into the U.S. was stopped as she was coming off a flight from Ghana. Agents discovered approximately 3.3 kilograms of heroin in her suitcase. The courier called Ebo-Amissah for further instructions and Ebo-Amissah told her that she would receive a return call. Shortly thereafter Boateng called the courier unsuccessfully. At the time the courier was detained, investigators saw Boateng at the airport, apparently waiting for someone.
Nana Boateng, age 34, of Leesburg, Virginia, previously pleaded guilty to his role in the conspiracy and was sentenced to 84 months in prison.
United States Attorney Rod J. Rosenstein praised the DEA, Baltimore County Police Department and HSI Baltimore for their work in the investigation. Mr. Rosenstein also commended the U.S. Department of State’s Diplomatic Security Service and the Department of Justice Office of International Affairs for their assistance in Ebo-Amissah’s extradition from Ghana to the United States.
Mr. Rosenstein thanked Assistant U.S. Attorney Kenneth S. Clark, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Fourth City of Buffalo Employee Pleads Guilty to Stealing Thousands of Dollars from Parking MetersRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Franklin Lopez, 33, of Buffalo, N.Y., pleaded guilty to stealing thousands of dollars from the City of Buffalo, a Governmental agency which receives federal funding, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 10 years in prison, a fine of $250,000 or both.
“Two and a half years ago, the public first learned of wide spread corruption in this City department,” said U.S. Attorney Hochul. “Thanks to the continuing efforts of law enforcement and current City officials, we can now report that a fourth Parking Enforcement employee has been convicted of stealing tens of thousands of dollars over a multi-year period of time. While seldom have we seen a single department so riddled with criminals, the public can rest assured that we will not stop until all who broke the law are brought to justice.”
Assistant U.S. Attorney Maura K. O'Donnell, who is handling the case, stated that the defendant was employed part time as a coin collector for in the City of Buffalo Department of Parking Enforcement between 2002 and 2011. In this capacity, Lopez was responsible for collecting coins deposited into parking meters.
On August 16, 2011, Buffalo Police found over $1,300 in coins inside the defendant's work vehicle, money that was supposed to be deposited into the city treasury. Further investigation, including a review of Lopez's banking records, revealed a substantial amount of cash deposits and cash payments for a variety of items. Between November 2002 and August 2011, Lopez stole approximately $69,000 from city parking meters.
With today’s conviction, the amount of money proven to be stolen by the convicted defendants exceeds $300,000.
Lopez is the fourth employee of the Department of Parking Enforcement to be convicted in this case. James Bagarozzo was convicted of stealing over $200,000 from Buffalo parking meters and sentenced to 30 months in prison on August 16, 2013. Bagarozzo was also ordered to pay $210,000 in restitution. Lawrence Charles has also been convicted of stealing over $10,000 from Buffalo parking meters and was sentenced to six months and prison and ordered to pay $15,000 in restitution. Francis Tronolone was convicted of stealing $9,000 in coins from city parking meters and is scheduled to be sentenced on August 15, 2014.
Sentencing is scheduled for October 16, 2014 at 1:00 p.m. before Judge Arcara.
The plea is the culmination of an investigation on the part Special Agents from the Federal Bureau of Investigation, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.Former WECO Owner Sentenced for Fraudulent Aircraft RepairsRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge John A. Mendez sentenced the former owner and president of WECO Aerospace Systems Inc. today to two and a half years in prison, United States Attorney Benjamin B. Wagner announced.
On November 4, 2013, after a three-week trial, a federal jury found William Hugh Weygandt, 64, of Granite Bay, guilty of conspiracy to commit fraud involving aircraft parts repair. A hearing to determine restitution is scheduled for September 16, 2014 at 1:30 p.m. Judge Mendez ordered Weygandt to surrender to begin serving his sentence on September 23, 2014.
At sentencing, Judge Mendez stated: “The jury verdict, conviction, and evidence demonstrated that Weygandt was the leader of a company engaged in fraud over a number of years. … He had the ability to stop the fraud. … This was, remains, and will always be a serious offense.”
WECO was a Federal Aviation Administration-certified repair business with facilities in Lincoln and Burbank, Calif. Weygandt began working for WECO upon its founding in 1974 by his father. By 2005, he was the president and sole owner. In January 2007, Weygandt sold the 75-employee company to Gulfstream Aerospace Corporation for approximately $17 million, and remained as president of the company until February 1, 2008.
According to evidence presented at trial, WECO was permitted by the FAA to repair certain types of aircraft parts, including starter generators and converters, used on various types of aircraft, including small helicopters used by tour companies and law enforcement agencies.
Evidence at trial established that WECO employees at both its Lincoln and Burbank repair stations regularly failed to follow FAA regulations in repairing and overhauling the aircraft parts. In many cases, WECO did not even have equipment capable of performing required tests. WECO employees at both locations nonetheless performed repairs and returned parts to customers, falsely certifying that the parts had passed tests and had been repaired in accordance FAA standards. The evidence at trial showed that in spite of being aware of the lack of testing equipment at the Burbank facility since 1985 and at the Lincoln facility since the mid-1990s, Weygandt allowed repairs to continue and failed to respond to repeated requests from employees for the equipment necessary to perform repairs and overhauls in accordance with the FAA requirements.
“Federal aircraft part repair regulations are intended to promote aircraft safety,” said U.S. Attorney Wagner. “William Weygandt allowed his company to circumvent those regulations for profit. The sentence imposed today reflects the seriousness of the crime. FAA part repair regulations are not advisory, and those who ignore them do so at their peril.”
“The sentencing today of the former owner and president of WECO Aerospace Systems Inc., William Hugh Weygandt, clearly demonstrates the severe penalties that await those who would seek to certify the repair and overhaul of aircraft parts illegally,” said William Swallow, Department of Transportation (DOT) Office of Inspector General (OIG) Regional Special Agent-in-Charge. “Safety of the Nation’s air transportation system remains a priority of DOT and the OIG. Working with our law enforcement and prosecutorial colleagues, we will continue our vigorous efforts to uncover suspect unapproved parts, prevent their use, and punish to the fullest extent of the law those who would seek to compromise the integrity of DOT’s safety programs.”
“This is a straightforward case in which Weygandt’s greed eclipsed his responsibility to ensure his crews had the necessary equipment to properly perform and certify repairs. His egregious and willful disregard of proper procedure and law jeopardized the lives and safety of pilots, passengers, and the unsuspecting public. We are all fortunate an accident did not occur,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation’s Sacramento division. “The FBI and our law enforcement partners are committed to identifying and thoroughly investigating anyone who intentionally circumvents safety regulations and laws to enhance profitability.”
This case is the product of an investigation by the Inspector General for the Department of Transportation, and the Federal Bureau of Investigation, along with the Inspectors General of the Department of Homeland Security, and Department of Defense. Assistant U.S. Attorneys Kyle Reardon and Michele Beckwith prosecuted the case.
There have been no known instances in which a fraudulent WECO repair resulted in an aircraft accident. However, multiple aircraft operators testified at trial that had they known that WECO had not properly repaired their parts, they would not have used them. According to former FAA Official Anthony Broderick, a defense witness at the trial, FAA regulations like the ones implicated in this case are intended “to promote safety of flight in civil aviation in the United States.” Upon learning of the allegations, the FAA issued an emergency order suspending WECO’s repair station certificate. In addition, since finalizing its purchase of WECO in 2008, Gulfstream fully cooperated with the FAA, as well as law enforcement in the investigation and prosecution of this case.
Former WECO executives Jerry Edward Kuwata, 60, of Granite Bay; Michael Dennis Maupin, 58, of Arbuckle; and Anthony Vincent Zito, 47, of Saugus, previously pleaded guilty to federal offenses in connection with the conspiracy and await sentencing.
Former Sierra Army Depot Employee Indicted for Theft of Military EquipmentRead the Press Release
SACRAMENTO, Calif. — Former Sierra Army Depot employee Tony Herrin, 36, of Reno, Nev., was arrested on Monday for conspiracy to steal and sell government property and theft and sale of government property, United States Attorney Benjamin B. Wagner announced.
On Thursday, July 3, 2014, a federal grand jury returned a two‑count indictment alleging that between January and April 2013, Herrin and co-conspirator Devon Biggs, civilian employees at the Sierra Army Depot (SIAD) in Lassen County, conspired to steal and sell United States military equipment from SIAD.
According to the indictment, on numerous occasions Herrin and Biggs removed U.S. military equipment from SIAD buildings, adjusted item codes in the computer database to conceal their thefts and arranged to sell the equipment to various buyers. On one occasion, they loaded a military vehicle with equipment stolen from SIAD, drove the vehicle from SIAD to a parking lot just outside the SIAD gate, and sold the equipment to an individual whom they had arranged to meet.
Herrin made an initial appearance in Reno on Monday and is scheduled to be arraigned on July 14, 2014. Biggs was charged in a separate indictment on May 5, 2013, and is scheduled to appear in district court for a status conference on September 17, 2014.
This case is the product of an investigation by the Law Enforcement Division of the United States Army and the Federal Bureau of Investigation. Assistant United States Attorneys Jean M. Hobler and Christiaan Highsmith are prosecuting the case.
If convicted, Herrin faces a maximum statutory penalty of five years in prison and a $250,000 fine on count one and 10 years in prison and a $250,000 fine on count two. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Los Angeles Sheriff's Deputy Sentenced for Mortgage FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former deputy of the Los Angeles County, Calif., Sheriff’s Department has been sentenced in federal court for his role in an $11 million mortgage fraud scheme.
Arman Nshanian, 38, of Corona, Calif., was sentenced by U.S. District Judge Greg Kays on Monday, July 7, 2014, to three years and six months in federal prison without parole. The court also ordered Nshanian to pay $785,926 in restitution.
Nshanian was convicted at trial on Dec. 6, 2013, of conspiracy to commit wire fraud and two counts of wire fraud related to fax transmissions and emails that were sent across state lines during the mortgage application process. During the trial, Nshanian committed perjury when he testified in his own defense. As a result of Nshanian’s false testimony, the court ruled that he obstructed justice, which warranted an enhanced sentence.
Co-defendant James Arthur Nash, Jr., 44, also of Corona and also formerly a sheriff’s deputy, was also convicted at trial of his role in the criminal conspiracy. Nash also was found guilty of four counts of wire fraud. He is scheduled to be sentenced on Aug. 12, 2014.
Nshanian and Nash are among nine defendants who participated in a mortgage fraud scheme from early 2005 through Aug. 4, 2006. Mortgage lenders made loans of approximately $11,092,886 on 16 residential properties in Lee’s Summit, Liberty, Blue Springs, Parkville, Independence and Oak Grove, Mo. From that total, unbeknownst to the lenders, buyers received approximately $2,006,845 in secret illegal kickbacks from the loan proceeds. The scheme resulted in a financial loss to mortgage lenders of nearly $5 million.
Nshanian fraudulently purchased a residential property in Lee’s Summit, Mo., for $750,000 and received an illegal kickback of $100,000. In loan applications, Nshanian provided false information about his employment and inflated his income. He falsely represented that he would live in the residence. Nshanian would not have qualified financially for the loans if he had been truthful, as his debt to income ratio would have been 91 percent. The loans soon went into default and were foreclosed. Nshanian never saw the property, never received the keys, and never lived in it. Nshanian created a shell company that received the $100,000 payment for work purportedly done by the company, but which in reality was only used to conceal the illegal kickback Nshanian received.
A week after closing on the Lee’s Summit property, Nshanian signed a contract to purchase a $798,000 residential property in Leawood, Kan., but the purchase did not occur. He also introduced his sister, Anahit Nshanian, to the scheme. She purchased two properties in Lee’s Summit for $520,000 and $657,500; she was charged in a separate case and pleaded guilty to those fraudulent purchases. Anahit Nshanian received a total of $169,307 in kickbacks and paid $22,000 to Arman Nshanian from the proceeds. Her loans quickly went into default and were foreclosed.
According to court documents, less than three months after purchasing the Lee’s Summit property, Arman Nshanian purchased a residential property in Corona for $631,000. In the loan applications for the first and second loans, he once again made false representations to get the loans.
Nash fraudulently purchased two residential properties in Blue Springs, Mo. He received $100,000 in secret kickbacks from each property.
Seven co-defendants have pleaded guilty and been sentenced. Leann Raejeana Turner, 44, of Blue Springs, was a real estate agent working for a series of real estate companies during the conspiracy. Carole L. Colson, 71, formerly doing business as Carole Colson Real Estate in Blue Springs, now of Lake Worth, Fla., was a real estate agent. Bruce Q. Williams, 44, of Kansas City, Kan., and Anthony E. Hicks, 42, of Little Rock, Ark., were loan officers at mortgage brokerage companies. Other co-defendants were “home buyers” who conspired to defraud mortgage lenders.
The scheme involved buying and selling homes at inflated prices, obtaining mortgage loans at the inflated prices, then kicking back $100,000 of the excess loan proceeds to each of the home buyers without the lenders’ knowledge. The scheme financially benefitted all of the conspirators. Turner (the real estate agent for 15 of the 16 transactions) received commissions and sometimes hidden payments and assets; Williams and Hicks (the loan officers) received commissions from the transactions. The home buyers received illegal secret kickbacks.
Turner and Colson listed and arranged for the sale of the homes at inflated prices and solicited buyers. Misrepresentations and omissions of material facts were made to mortgage lenders in order to obtain the loans. In order to obtain the loan proceeds without the lenders’ knowledge, the buyers created fictitious businesses that issued false invoices that claimed the businesses had provided work and services for which they were entitled to receive loan proceeds.
This case is being prosecuted by Assistant U.S. Attorney Linda Parker Marshall. It was investigated by the FBI and IRS-Criminal Investigation.Former Harrisburg Resident Sentenced to 60 Months Imprisonment for Possession of FirearmRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Anthony Knight, 45, formerly of Harrisburg, was sentenced to 60 months imprisonment by the Senior United States District Court Judge William Caldwell.
Knight was indicted in 2008 as the result of an investigation by Drug Enforcement Administration and the Dauphin County Drug Task Force. He plead guilty in May 2013, after admitting that he had possessed a .38 caliber firearm at the time of his arrest.
The case as part of a continuing cooperative effort to prosecute drug trafficking and firearms offenses in Dauphin County. The prosecutor assigned is Assistant Unites States Attorney Michael A. Consiglio.
****Former Executive Director of Gallup Housing Authority Pleads Guilty to Federal Fraud and Theft ChargesRead the Press Release
ALBUQUERQUE – Two men from Gallup, N.M., pleaded guilty today to federal charges arising out of a scheme to defraud the United States and the U.S. Department of Housing and Urban Development (HUD) of more than $100,000. The guilty pleas were announced by U.S. Attorney Damon P. Martinez, Phyllis Robinson, Special Agent in Charge of Region 6, HUD Office of Inspector General, and Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI.
The defendants, Danny Garcia, 38, and Michael Virruso, 61, were indicted in Aug. 2013, on one count of conspiracy and eight counts of making false claims against the United States. Garcia also was charged with three counts of theft from programs receiving federal funds.
According to the indictment, between June 2010 and Oct. 2012, Garcia and Virruso engaged in a scheme to steal federal funds provided by HUD to the Gallup Housing Authority (GHA). HUD is a federal agency whose core mission is to make quality, affordable housing accessible to all Americans. HUD oversees and funds programs designed to provide affordable housing for low-income Americans. One such program, the Capital Fund Program (CFP), provides grants to public housing agencies for the purpose of making improvements to public housing developments. GHA is a public housing agency that receives approximately $400,000 in CFP grants each year and Garcia was the Executive Director of GHA at the time of the offenses charged in the indictment.
As Executive Director of GHA, Garcia was responsible for selecting contractors to carry out GHA projects, reviewing and approving invoices payable by GHA, and requesting HUD funds to pay for GHA projects. According to the indictment, in summer 2010, Garcia awarded a contract to remove and replace sidewalks in a GHA housing development to a construction company that employed Virruso and appointed Virruso to act as safety inspector. While working on the project, Virruso submitted invoices to GHA for work performed by the company and for which the company received payment. Garcia used GHA funds to pay Virruso’s invoices and then obtained reimbursement from HUD’s CFP. Virruso and Garcia then formed a company together, MCL Construction. Virruso submitted a fraudulent invoice from MCL to Garcia, who approved the invoice for payment from HUD funds, and both men collected a share of the proceeds. Virruso fraudulently received more than $75,000 through this scheme. In addition, Garcia embezzled more than $15,000 of HUD funds by misusing a GHA debit card.
During today’s proceedings, both men entered guilty pleas to Counts 1 and 9 of the indictment charging them with conspiracy to commit false claims against the United States and false claims against the United States. Garcia also pleaded guilty to Count 10 of the indictment charging him with theft from a program receiving federal funds. In their respective plea agreements, Garcia and Virruso each admitted participating in the unlawful scheme described in the indictment. Garcia also admitted embezzling GHA funds by making personal purchases exceeding $5,000 per year using a debit card linked to a GHA bank account.
Under the terms of the plea agreements, Garcia and Virruso each will be sentenced to a prison term within the range of 18 to 24 months followed by a term of supervised release to be determined by the court. Garcia also was ordered to pay $105,000 with interest in restitution to the United States, including $75,000 that is to be paid jointly with Virruso. Both men remain on conditions of release pending their sentencing hearings, which have yet to be scheduled.
The case was investigated by the Region 6, HUD Office of Inspector General and the Albuquerque Division of the FBI, and is being prosecuted by Assistant U.S. Attorney Jeremy Peña.
Former Ceo of New London Manufacturing Company Pleads Guilty to Violating Clean Water ActRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, John K. Gauthier, Acting Special Agent in Charge of EPA’s Criminal Investigation Division for New England, and Commissioner Robert Klee of the Connecticut Department of Energy and Environmental Protection announced that THOMAS H. FARIA, 37, the former chief executive officer and president of Faria Limited, LLC, doing business as Sheffield Pharmaceuticals, waived his right to indictment and pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to a felony violation of the Clean Water Act. As a condition of his guilty plea, FARIA resigned from the company on March 7, 2014, and shall have no role in the operations or management of Faria Limited.
“Any CEO operating a factory in Connecticut who ignores federal and state environmental laws risks not only significant fines, but also a jail sentence,” said U.S. Attorney Daly. “The Clean Water Act applies to every industrial entity doing business in Connecticut. For at least seven years, Thomas Faria knowingly violated the law by directing his employees to discharge industrial wastewater into the public sewage system without a permit, and without monitoring the chemical levels of the discharge. He pursued this illegal course over the objection of a manager who urged him in writing to bring the company into compliance with the law. This Office will vigorously prosecute corporate officers whose decisions and actions, in the name of corporate profits, threaten Connecticut’s natural resources and harm the public’s right to a clean environment. We recognize and thank the EPA for their invaluable work in protecting the environmental integrity of Connecticut’s rivers and the Long Island Sound.”
“Blatant disregard for our environmental laws occurs whenever greed and poor judgment intersect,” said Acting Special in Charge Gauthier. “EPA, along with the Department of Justice and our federal and state partners, work tirelessly to protect New England’s natural resources and to ensure that there are serious repercussions for decisions like those of Thomas Faria.”
“Connecticut’s laws and regulations concerning the handling of industrial discharges are designed to protect public health and natural resources,” said Commissioner Klee. “Mr. Faria’s blatant disregard for those requirements stands in sharp contrast to the majority of business leaders in our state who understand that respect for and compliance with environmental rules is consistent with growth and a strong bottom line. The no nonsense handling of this case by the U.S. Attorney’s office sends a strong signal to all businesses that it clearly pays to ‘do the right thing’ at all times when it comes to our environment.”
According to court documents and statements made in court, the Clean Water Act requires that every company obtain a permit from the Connecticut Department of Energy and Environmental Protection (“CT DEEP”) before it can discharge its industrial wastewater to the public sewage system, commonly known as the publicly owned treatment works (“POTW”). Companies are also required, among other things, to test and monitor their industrial wastewater monthly to ensure that the chemical levels in the wastewater do not exceed federal and state limitations.
Sheffield Pharmaceuticals (“Sheffield”) has a factory at 170 Broad Street in New London that manufactures a wide range of over-the-counter pharmaceutical creams, ointments and toothpastes. From approximately 1986 to July 2011, Sheffield discharged industrial wastewater from its New London manufacturing operations to the New London POTW without a permit and in violation of Connecticut’s approved pretreatment program. The New London POTW discharges to the Thames River in southeastern Connecticut. During this entire time period, Sheffield lacked a pretreatment system at its factory to treat its industrial wastewater prior to discharge to the New London POTW, performed no regular monitoring of its discharges of industrial wastewater, and submitted no monthly monitoring reports to the CT DEEP.
After becoming the company’s president and chief executive officer in April 2003, FARIA soon learned through his own employees that Sheffield was discharging pollutants, including the toxic metal zinc, in its industrial wastewater without the required permit. FARIA also learned that in order to obtain a permit from CT DEEP, the company would have to install, at significant expense, a wastewater pretreatment system that would pretreat its industrial wastewater prior to discharging it to the New London POTW. Although FARIA’s own employees urged him to make the financial investment to bring the company into compliance, FARIA chose not to do so. FARIA continued this illegal course even when four environmental consulting firms, which the company had hired, advised him that the discharge of industrial wastewater to the public sewage treatment system, without a pretreatment system and CT DEEP permit, is illegal.
On April 20, 2011, the CT DEEP conducted an unannounced inspection of Sheffield. After finding that the company had no wastewater discharge permits, the CT DEEP inspector issued a Notice of Violation and cited the company for discharging manufacturing and laboratory wastewater without a permit. On or about May 27, 2011, Faria Limited, LLC submitted a permit application to CT DEEP so that the company could legally discharge industrial wastewater from its New London facility into the New London POTW.
By July 2011, the company had installed a wastewater pretreatment system at its factory to pretreat the pollutants contained in its industrial wastewater prior to its discharge to the New London POTW.
FARIA pleaded guilty to one count of knowingly violating, or causing to be violated, the Clean Water Act, an offense that carries a maximum penalty of three years of imprisonment and a fine of not less than $5,000 but not more than $50,000 per day of the violation. Judge Thompson scheduled sentencing for October 6, 2014.
This matter has been investigated by the U.S. Environmental Protection Agency and the Connecticut Department of Energy and Environmental Protection. The case is being prosecuted by Assistant U.S. Attorney Hal Chen and Special Assistant U.S. Attorney Peter Kenyon.
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(203) 821-3722 [email protected]Former Carter’s Executives and Portfolio Manager for New York Hedge Fund Sentenced to Federal Prison for Multi-Million Dollar Insider Trading ConspiraciesRead the Press Release
ATLANTA - Eric M. Martin, Mark Megalli, and Richard T. Posey have been sentenced to federal prison for their roles in insider trading conspiracies involving Carter’s, Inc. stock.
“Illegal insider trading undermines confidence in the nation’s stock markets. Today’s sentences are a step towards restoring that confidence. These sentences send a strong message to company insiders and investment industry professionals in this district and elsewhere that they are required to follow the same rules that govern regular investors, and that the consequences for failing to do so can be severe,” said United States Attorney Sally Quillian Yates.
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Those individuals who choose to ignore insider trading laws do so at the risk of becoming targets of federal investigations. The FBI will continue to provide substantial investigative resources toward such insider trading activities with the primary goal of maintaining a fair and equitable stock market for all.”
According to United States Attorney Yates, the charges and other information presented in court: Carter’s, Inc. is a major children’s clothing company headquartered in Atlanta, Georgia. Carter’s is a public company registered with the U.S. Securities & Exchange Commission (“SEC”), and its common stock is listed on the New York Stock Exchange.
Martin was employed as Carter’s Director and later Vice President of Investor Relations between 2003 and March 2009. In this capacity, Martin participated in and helped the company’s key executives prepare for Carter’s public disclosure of its quarterly and annual financial results at the end of each quarter or fiscal year. These and other duties afforded Martin regular access to material, non-public information about Carter’s upcoming earnings releases and other significant developments and transactions.
On a consistent basis between early 2005 and his separation from Carter’s in March 2009, Martin disclosed material, non-public information about Carter’s upcoming earnings releases and other developments to a former Wall Street analyst identified by the government as “Cooperator Number 1,” for the purpose of making illegal insider trades. Cooperator Number 1 repeatedly bought and sold Carter’s stock on the basis of this information, earning substantial illegal profits and illegally avoiding substantial losses. Cooperator Number 1 also tipped others, including Titan Capital Management LLC, a New Jersey hedge fund that had retained him as an outside consultant. Martin disclosed this and other material, non-public information in exchange for friendship, reciprocal stock tips about other public companies to which Cooperator Number 1 had access, and future business and networking opportunities.
After Martin separated from Carter’s in March 2009, Martin continued to obtain inside information in advance of Carter’s earnings releases and other events from Posey, who was his friend and former Carter’s co-worker. Posey was employed as a Vice President of Operations for various Carter’s brands and divisions and later as Vice President of Operations for the company’s wholesale sales business from in or about July 2002 until his termination in January 2013. Posey disclosed the information to Martin from early 2009 through July 2010 in exchange for friendship, reciprocal stock tips, and future business and networking opportunities.
Martin in turn traded on the information himself and also continued to provide the inside information to Cooperator Number 1 and others through July 2010. Further, in or about September 2009, Martin began providing the inside information to several financial institutions and investment firms that hired him as an outside consultant, including multibillion dollar New York hedge fund Level Global Investors LP. Martin’s contact at Level Global was Mark Megalli, who was employed as the portfolio manager for Level Global’s consumer sector. Megalli in turn caused Level Global to execute multimillion dollar trades in Carter’s stocks based on the inside information received from Martin from September 2009 through July 2010.
Martin and Posey also traded in Carter’s stock for their own benefit on the basis of material, non-public information in advance of Carter’s earnings releases and other events during their employment with the company. This trading took place during company-wide trading blackout periods that preceded the company’s quarterly and annual earnings releases, even though company policies prohibited company insiders from trading in Carter’s stock at those times.
Martin’s illegal trading and tipping of others between 2005 and 2010 resulted in over $7 million in insider trading gains and losses avoided for Martin and his downstream tippees. Posey’s illegal trading and tipping of Martin between 2009 and 2010 resulted in over $5 million in insider trading gains and losses avoided. Megalli’s illegal trading between 2009 and 2010 resulted in over $3 million in insider trading gains and losses avoided for Level Global.
- Martin, 44, of Roswell, GA, was sentenced to two years in prison to be followed by 3 years of supervised release, ordered to pay restitution in the amount of $950,000, and ordered to perform 80 hours of community service. Martin was convicted on these charges on December 18, 2012, after he pleaded guilty.
- Posey, 53, of Duluth, GA, was sentenced to one year, three months in prison to be followed by 3 years of supervised release, ordered to pay restitution in the amount of $750,000, and ordered to perform 80 hours of community service. Posey was convicted on these charges on June 19, 2013, after he pleaded guilty.
- Megalli, 42, of New York, NY, was sentenced to one year and one day in prison to be followed by 3 years of supervised release, ordered to pay restitution in the amount of $50,000, and ordered to perform 100 hours of community service. Megalli was convicted on these charges on November 14, 2013, after he pleaded guilty.
A fourth defendant, Steven E. Slawson, 67, of Lebanon, New Jersey, was indicted by the grand jury on May 20, 2014. Slawson, a co-founder of Titan Capital Management, is alleged to have traded on tips obtained from Cooperator Number 1 and later directly from Martin from early 2005 through July 2010. The case has been assigned to U.S. District Judge Richard W. Story for trial. A trial date has not yet been set.
The cases are being investigated by the Federal Bureau of Investigation.
Assistant United States Attorneys David M. Chaiken and Stephen H. McClain are prosecuting the cases.
The Atlanta Regional Office of the SEC has conducted a separate investigation into potential civil violations of the U.S. securities laws relating to insider trading in Carter’s stock. In connection with its investigation, the SEC has filed civil enforcement actions against multiple individuals.
Carter’s, Inc. is cooperating in the investigation.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/Felon Who Shot at Tennessee Highway Patrol Trooper Sentenced to Serve 210 Months in PrisonRead the Press Release
GREENEVILLE, Tenn. – On Jul. 7, 2014, Derrick Dakota Kitzmiller, 22, of Gray, Tenn., was sentenced to serve 210 months in prison by the Honorable J. Ronnie Greer, U.S. District Judge. Kitzmiller pleaded guilty in February 2014, to a federal grand jury indictment charging him with two counts of being a felon in possession of a firearm.
During the sentencing hearing Judge Greer found that Kitzmiller used firearms purchased in December 2012 to shoot at a Tennessee State Trooper in January 2013, in Washington County, Tenn. Jennifer Russell, who was also present at the shootout, pleaded guilty to buying the guns for Kitzmiller and is awaiting sentencing on August 4, 2014. Kitzmiller still faces related charges in the Criminal Court of Washington County, Tenn.
The indictment and subsequent conviction of Kitzmiller was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and Tennessee Highway Patrol Criminal Investigation Division (THP-CID). Assistant U.S. Attorney Robert M. Reeves represented the United States.
U.S. Attorney Bill Killian praised the investigative work of the ATF and THP-CID in this case. “This case highlights the dangers faced by law enforcement officers as a result of felons possessing firearms. The U.S. Attorney’s Office will continue to aggressively prosecute individuals who possess firearms illegally. We are all grateful that the state trooper involved in this incident was not killed or seriously injured,” stated Killian.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
Farrell Felon Involved in Shootout Admits Illegally Possessing WeaponRead the Press Release
PITTSBURGH - A Mercer County resident pleaded guilty yesterday in federal court to a charge of possession of a firearm by a convicted felon, United States Attorney David J. Hickton announced today.
Ralph Samuels, Jr., 50, of Farrell, Pa., pleaded guilty to one count before Senior United States District Judge Terrence F. McVerry.
In connection with the guilty plea, the court was advised that in the early morning hours of Oct. 3, 2012, Samuels, who has a prior felony conviction in Ohio, engaged in a gunfight with Daniel Odem, Jr. Both Odem and Samuels fired shots at each other, and both were wounded in the shootout. The shootout stemmed from a bar fight earlier that evening between Deandre Chambers and Corey Odem at Rockabilly’s Bar.
Judge McVerry scheduled sentencing for Oct. 10, 2014 at 10:30 a.m. The law provides for a total sentence of up to 10 years in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Pennsylvania State Police, Southwest Mercer County Regional police, and the Mercer County District Attorney conducted the investigation that led to the prosecution of Ralph Samuels.
Etna Man Distributed Child Pornography to Undercover FBI AgentRead the Press Release
PITTSBURGH – An Etna resident pleaded guilty on July 3, 2014, in federal court to charges of distribution of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
David L. Roethlein, 26, pleaded guilty to one count before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that Roethlein, on June 1, 2012, distributed over a peer-to-peer network to an agent of the Federal Bureau of Investigation in New Haven, Connecticut, working in an undercover capacity, videos and photographs in computer graphics files which depicted the sexual exploitation of prepubescent minor females.
Judge Conti scheduled sentencing for Oct. 17, 2014, at 3:30 p.m. The law provides for a total sentence of not less than five years nor more than twenty years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court detained Roethlein.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Allegheny County District Attorney’s Office conducted the investigation that led to the prosecution of Roethlein.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Detroit Tax Preparer Sentenced for Failing to Report Income from Tax PreparationRead the Press Release
The Justice Department, the Internal Revenue Service (IRS) and the Treasury Inspector General for Tax Administration (TIGTA) announced that Matthew Bender, of Detroit, was sentenced today by U.S. District Judge Julian Abele Cook Jr. to serve 48 months in prison and one year of supervised release.
On March 18, after a fourday trial, a jury in the U.S. District Court for the Eastern District of Michigan convicted Bender of obstructing the IRS and of nine counts of aiding and assisting in the preparation of false federal income tax returns. On June 4, another jury convicted Bender of failing to make a required appearance in court. Today’s sentencing is for all of Bender’s convictions.
According to court documents and evidence produced at trial, between 2006 and 2011, Bender prepared more than 3,000 tax returns and earned more than $500,000 in fees. However, Bender failed to report his own income from tax preparation to the IRS, either by filing false tax returns for himself or by failing to file his own tax returns at all. The evidence also showed that Bender caused inflated tax refunds for his customers by placing false deductions on their returns.
After the initial indictment prior to his first trial, Bender was ordered by Judge Cook Jr. to appear in court July 2, 2013, concerning his failure to comply with his conditions of release. Bender failed to appear in court on that date and was arrested in August 2013 by the U.S. Marshals Service after returning to Michigan from traveling to Ohio and Texas.
The case was investigated by special agents of IRS – Criminal Investigation and TIGTA. Trial Attorneys Jeffrey McLellan and Kenneth Vert of the department’s Tax Division prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found at the division website .
Detroit Man Pleads Guilty to Large-scale Heroin Distribution in HuntingtonRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who led a conspiracy with other individuals to distribute heroin in Huntington in 2013 and 2014 pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Christopher Lamarr-Shawn Harris, also known as “C” and “Caesar,” 27, pleaded guilty before Chief United States District Judge Robert C. Chambers to conspiring to distribute a kilogram or more of heroin.
From at least the summer of 2013 to April 2, 2014, Harris led a conspiracy along with others, including Denzell Lamar Bunkley, Jakaiser Wesley Jackson, and Brandon S. Keaton, to distribute heroin, primarily in West Huntington. Harris recruited co-conspirators and frequently arranged for the transportation of heroin from Detroit, Michigan, to Huntington. Harris utilized multiple locations to store, prepare and distribute heroin, including the Red Roof Inn Hotel located on Route 60 in Huntington and an apartment located at 1416 Jefferson Avenue in West Huntington. In addition to Bunkley, Jackson, and Keaton, Harris also recruited local residents to assist with drug distribution.
On December 31, 2013, officers with the Huntington Police Department’s Special Investigations Unit executed a search warrant at the Jefferson Avenue apartment. Officers seized approximately 413 grams of heroin and $12,349 in cash during the search. Officers also arrested Harris, Bunkley, and another individual who were located inside the apartment.
Harris was again arrested on February 20, 2014, in Ohio by the Ohio State Highway Patrol while travelling from Huntington to Detroit. During his arrest, officers seized a total of $24,930 in cash from Harris.
Harris was arrested for a third time on April 2, 2014, after officers received information that he was again present at the Red Roof Inn in Huntington distributing heroin. Officers executed a search warrant for two rooms at the hotel and seized approximately 192 grams of heroin along with $3,000 in cash. Harris, along with Jackson, had arranged for the transportation from Detroit of the heroin seized in the days prior to the search.
As part of his guilty plea, Harris admitted to arranging for the distribution of over one kilogram of heroin, primarily in West Huntington, during the conspiracy. Harris also admitted to serving as a manager and organizer of the conspiracy and maintaining a residence for the purpose of distributing heroin.
Keaton, of Huntington, previously pleaded guilty to his role in the conspiracy. Bunkley and Jackson, both of Detroit, also entered guilty pleas today.
Harris faces 10 years to life in federal prison when he is 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.
Dallas Lawyer Pleads Guilty to Criminal Copyright Infringement Related to Investor Fraud Case Involving Dynasty Spirits, Inc.Read the Press Release
DALLAS — Andrew Lee Siegel, a Dallas attorney, appeared this morning before U.S. Magistrate Judge Paul D. Stickney and pleaded guilty to an information charging one count of felony criminal infringement of a copyright, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Siegel, 54, admitted committing the criminal infringement by unlawfully reproducing the writings, letterhead and logos of The Northern Trust Company and the Federal Reserve Bank in several fraudulent and fictitious communications with the intent to deceive the owners of Dynasty Spirits, Inc.
In fall 2010, Siegel established Dynasty Spirits, LLC, and later Dynasty Spirits, Inc. and Speak Easy Distillers, LLC, to facilitate the production and bottling of “Nue Vodka.” In February 2012, Siegel created a private placement memorandum for Dynasty Spirits, Inc. (Dynasty) authorizing the sale of up to $2,000,000 of common stock shares by Dynasty.
From September 2011 through July 2012, Siegel collected approximately $1,595,000 from 35 investors for the sale of Dynasty stock certificates. Siegel concealed from Dynasty owners that he unlawfully used up to $410,000 of that amount for his personal benefit, which he had collected from no more than six of the 35 investors.
For example, on April 11, 2012, Siegel unlawfully used $175,000 previously tendered to Dynasty in order to issue himself 700,000 shares of Dynasty stock on June 15, 2012. As part of a civil settlement in June 2013, Siegel agreed to release and surrender any claim to the 700,000 shares.
In November 2012, Dynasty owners suspected Siegel had unlawfully used investor funds, and when confronted, Siegel falsely stated that he had attempted to wire $185,000 in investor funds to Dynasty but the transfer was misrouted. The following month, Siegel created fraudulent and fictitious emails to Dynasty owners representing he attempted to wire transfer $185,000 from his bank account to the Dynasty owners’ bank account. Some of the fraudulent emails Siegel created contained copyrighted writings and the logo of The Northern Trust Company.
Later that month, Siegel created another fraudulent email to Dynasty owners that contained copyrighted writings, letterhead and logos of the Federal Reserve Bank Services. In fact, Siegel used several fraudulent and fictitious emails that falsely represented to Dynasty owners that he was in contact with The Northern Trust Company and the Federal Reserve Bank Services in connection with his “attempted” $185,000 wire transfer to the Dynasty owners. Siegel engaged in this fraudulent conduct to deceive the owners of Dynasty and convince them that he was making a good faith effort to transfer investor funds to the investors of Dynasty.
In June 2013, Siegel and Dynasty reached a civil settlement in connection with various civil claims and counterclaims arising from Siegel and Dynasty’s business relationship. That settlement was before the commencement of the federal investigation, but only after Dynasty discovered and confronted Siegel about his unlawful use of investor funds.
Siegel faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. He will remain on bond pending sentencing set for October 29, 2014.
The FBI is investigating, and Assistant U.S. Attorney David L. Jarvis is in charge of the prosecution.
Columbus Man Sentenced to 8 Years for Distributing Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Edward J. Johnson, age 41 of Columbus, Nebraska, was sentenced in the United States District Court in Omaha for the distribution and possession of child pornography. The Honorable Laurie Smith Camp, Chief Judge, sentenced Johnson to 96 months imprisonment. There is no parole in the federal system. After his release from federal prison Johnson will begin a fifteen year term of supervised release. Johnson will be required to register with the Sex Offender Registry upon release.
A public website reported that an Internet Protocol (IP) address in Columbus, Nebraska, had displayed two images of child pornography on the website. An officer with the Nebraska State Patrol, acting in an undercover capacity and posing as a teenage girl, engaged in a series of chats with Johnson. Johnson sent additional images of child pornography to the undercover officer on July 23, 2013.
A search warrant was served on Johnson’s home in Columbus, Nebraska on August 27, 2013. He admitted sending the images of child pornography to the undercover officer. Forensic review of the computer revealed 200 videos of child pornography. The images included bondage and prepubescent children involved in a variety of sexual acts with adults and other children.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
College Park Police Officer Sentenced to Federal Prison for Illegally Obtaining U.S. CitizenshipRead the Press Release
ATLANTA – Devon Campbell, a/k/a Wilmott Alvin Livingston, a former Jamaican police officer who illegally entered the United States and then became a U.S. citizen and a College Park police officer, was sentenced to ten months in prison for committing immigration fraud.
“For more than a decade, Campbell violated this country’s immigration laws and deceived this nation’s immigration authorities,” said United States Attorney Sally Quillian Yates. “We require honesty and integrity from our police officers, and Campbell’s fraud on the immigration system violated this trust.”
“The defendant used his fraudulently obtained U.S. citizenship to become a police officer in this country, making a mockery of the very laws he was sworn to uphold,” said Brock D. Nicholson, special agent in charge of Homeland Security Investigations in Atlanta. “U.S. citizenship is eagerly sought by millions of people across the world, and HSI special agents work hard to maintain the integrity of our system by identifying those like Mr. Campbell who seek to gain it through fraud.”
According to United States Attorney Yates, the charges, and other information presented in court: In 2000, Campbell lived in Jamaica, where he had previously been employed as a police officer with the Jamaican Constabulary Force. On November 7, 2000, Campbell left Jamaica and entered the United States using a Jamaican passport bearing the fabricated name Wilmott Alvin Livingston and a false date of birth.
While in the United States, Campbell lived under the Livingston alias. On April 19, 2001, Campbell (using the Livingston alias) married a United States citizen in Jonesboro, Ga. Shortly thereafter, Campbell (under the Livingston name) petitioned to become a Lawful Permanent Resident. On August 13, 2004, U.S. immigration authorities granted the application and Campbell (under the Livingston name) became a permanent resident of the United States.
On October 15, 2007, Campbell, using the Livingston name and date of birth, filed an Application for Naturalization with U.S. immigration services. Although the application required Campbell to list any previously-used names, Campbell marked that section with the letters “N/A,” meaning ‘Not Applicable.’ Campbell also signed the form under penalty of perjury using the fabricated name Wilmott Alvin Livingston. On April 11, 2008, Campbell (under the Livingston alias) became a naturalized U.S. citizen. Later that month, Campbell applied for and was subsequently issued a U.S. passport. On the passport application, Campbell listed his false name and date of birth. Campbell has used his fraudulently-obtained passport to travel back and forth to Jamaica.
Two months after becoming a U.S. citizen, on June 12, 2008, Campbell (under the Livingston identity) and his wife divorced. Eight days later, Campbell (under the Livingston identity) married another woman.
Since 2011, Campbell has served as a police officer with the College Park Police Department. In obtaining his Georgia Peace Officer Standards and Training certification, Campbell falsely claimed to be a naturalized United States citizen and submitted an unlawfully obtained Certificate of Naturalization.
On April 8, 2014, Campbell, 46, of Ellenwood, Ga., pleaded guilty to one count of Unlawfully Procuring Citizenship or Naturalization and one count of Using a Passport Secured by False Statements.
As part of his conviction, Campbell’s United States citizenship has been revoked. In addition, after completing his prison sentence, Campbell will be removed from the United States.
This case was investigated by Homeland Security Investigations.
Assistant United States Attorney Jeffrey W. Davis prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Charleston Man Pleads Guilty to Heroin and Crack Cocaine ChargesRead the Press Release
CHARLESTON, W.Va. – Jonathan Kennedy, 33, pleaded guilty today in federal court to two drug felonies – one related to his travel between Detroit, Michigan and Charleston, West Virginia, in aid of distributing heroin, and the second based on his use of a communication facility, his cellular telephone, in committing the crime of distribution of crack cocaine -- both in Charleston, West Virginia, where he resides. In June 2014, Kennedy was indicted by a grand jury on one count of distributing heroin, one count of distributing crack cocaine, one count of conspiracy to distribute heroin, one count of conspiracy to distribute oxymorphone and oxycodone, one count of being a felon in possession of a firearm, and one count of tampering with a witness. Kennedy faces up to nine years’ imprisonment when he is sentenced on October 14, 2014.
This case was investigated by the Charleston Police Department. United States District Judge Thomas E. Johnston conducted today’s guilty plea hearing.
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 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 and heroin trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Carthage, Texas, Resident Sentenced to 10 Years in Prison for Enticing an Underage Girl to Have SexRead the Press Release
SHREVEPORT, La. – A Carthage, Texas, man was sentenced to 120 months in prison and five years of supervised release for attempting to have sex with an underage girl, U.S. Attorney Stephanie A. Finley announced today.
Sammy D. Mosley, 39, of Carthage, Texas, was sentenced by U.S. District Judge S. Maurice Hicks Jr. for one count of attempting to entice a minor to engage in criminal sexual activity. According to evidence presented at the guilty plea on March 13, 2014, Mosley responded to an online advertisement July 24, 2013 soliciting a mother and daughter for sex. Mosley began to correspond with a law enforcement officer posing as a 13-year-old girl. Mosley negotiated prices for sex and asked for nude pictures. He was arrested on August 1, 2013 at a meeting place in Bossier City, La., where he had agreed to meet the girl and her mother.
The FBI and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case. This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ 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 exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.
Those concerned may leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Shreveport FBI office number is (318) 861-1890.
Buffalo Man Pleads Guilty in Towing Scandal Involving Buffalo Police OfficersRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Christopher Mahoney, 30, pleaded guilty before U.S. District Court Judge Richard J. Arcara, for conspiring to pay bribes to City of Buffalo police officers. The charges carry a maximum sentence of five years in prison, a fine of $250,000 or both.
“Today’s conviction for bribery exposes a ‘pay to play’ scheme in the Buffalo towing service industry,” said U.S. Attorney Hochul. “As admitted by this defendant, certain police officers were paid in exchange for notification and call-out to motor vehicle accident scenes. This Office will bring to justice those who would corrupt a branch of government or seek to create an uneven playing field through payment of bribes.”
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the prosecution, stated that James Mazzariello, Jr. owned and operated Jim Mazz Auto, Inc. and National Towing, Inc. The companies were involved in all aspects of the automobile towing and repair business, including collision repair work, mechanical repair work, towing and storage work, and the sale of used automobiles. Adam Mazzariello, the son of James Mazzariello, Jr., supervised the towing services aspect of the businesses. Christopher Mahoney served in a managerial capacity for each of the businesses.
Mahoney admitted that between January 2009 and May 2012, Jim Mazz Auto tow truck operators, at the direction of James Mazzariello, Jr. and Adam Mazzariello, made payments to certain City of Buffalo police officers for their assistance in enabling Jim Mazz tow truck operators to tow motor vehicles damaged in accidents in the City of Buffalo. The tow truck operators made these bribe payments from their own personal funds and subsequently sought reimbursement from James Mazzariello, Jr., Adam Mazzariello and Christopher Mahoney. James Mazzariello, Jr. directed and authorized Christopher Mahoney to make reimbursement payments to the tow truck operators. Mahoney made reimbursement payments to tow truck operators on a regular basis and often times used cash from the Jim Mazz Auto cash drawer to make such payments.
While the plea agreement does not specify the exact number of bribe payments made by the tow truck operators to Buffalo Police Officers, the government, through its investigation and prior to the time defendant Mahoney expressed a desire to plead guilty, substantiated and examined, in detail, 19 different bribe payments made by tow truck operators. Approximately $500 in payments were made to Buffalo police officers by tow truck operators for access to the tows of the 19 accidents examined. The gross revenue Jim Mazz Auto derived from making such bribe payments totaled $43,022.74. The gross revenue consisted of payments made to Jim Mazz Auto for towing, as well as for mechanical and collision repair work.James Mazzariello, Jr. and Adam Mazzariello are under indictment for conspiring to pay bribes to City of Buffalo police officers. James Mazzariello, Jr. is also charged with filing false corporate tax returns and false personal tax returns for calendar years 2009 and 2010.
The plea is the culmination of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office, the New York State Department of Motor Vehicles Criminal Division, under the direction of Owen McShane, Director of Investigations, the New York State Department of Taxation and Finance Criminal Investigations Division, under the direction of Upstate Chief of Investigations Pat Simet, the New York State Department of Financial Services Criminal Investigations Unit, under the direction of Director Frank Orlando, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Mahoney is scheduled to be sentenced on October 20, 2014 at 1:00 p.m. before Judge Arcara.Bluefield, W.Va Resident Sentenced to Prison for Role in Nigerian Fraud SchemeRead the Press Release
ABINGDON, VIRGINIA – A West Virginia woman, who was part of a Nigerian wire fraud scheme, was sentenced yesterday in the United States District Court for the Western District of Virginia in Abingdon.
Audrey Elaine Elrod, 47, of Bluefield, W.Va., was sentenced to imprisonment for a term of 52 months. Elrod previously pled guilty to an Information charging her with one count of structuring transactions to avoid reporting requirements and one count of conspiracy to commit wire fraud.
At sentencing, Elrod testified that an individual who identified himself as “Duke McGregor” befriended her on Facebook. She developed a romantic attachment with “Duke” through instant messaging. “Duke” eventually asked her to send money to his friend, “Sinclair,” in Nigeria. Over time, “Duke” caused hundreds of thousands of dollars to be sent to accounts controlled by Elrod. These amounts were unwittingly sent to Elrod by victims of the scheme. Elrod then structured the money out of her accounts, keeping the amounts below $10,000 to avoid the filing of Currency Transaction Reports with the IRS. She then sent the money by Western Union and MoneyGram to accounts in Nigeria. Elrod played an important role in the scheme because using her accounts disguised from the victims the fact that their money was ending up in Nigeria. Between March 2012 and July 2013, Elrod received $ $446,927.59 in wire transfers into bank accounts she controlled. Between July 2012 and July 2013, Elrod structured $411,411.20 in cash transactions in an effort to hide her activity from the government.
Elrod was arrested on federal charges on April 15, 2013. After the Court released her on bond, Elrod continued to receive and send money as part of the fraud scheme. She then absconded to Charlotte, North Carolina, and continued the scheme there. On August 29, 2013, she was apprehended in Charlotte and has remained in federal custody ever since.
The investigation of the case was conducted by the Internal Revenue Service, Criminal Investigations, the United States Marshal Service, the Russell County Sheriff’s Office, the Bluefield Virginia Police Department, and the Bluefield West Virginia Police Department. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Bank Robber Sentenced to over 10 Years in Prison for Five RobberiesRead the Press Release
Admitted Committing Two Additional Bank Robberies
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Rodney Scott Bush, age 47, of Fort Washington, Maryland today to 125 months in prison, followed by three years of supervised release, for conspiracy to commit bank robbery and five bank robberies. As part of his plea agreement, Bush also admitted committing two additional bank robberies.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Anne Arundel County Police Chief Kevin Davis; and Chief Mark A. Magaw of the Prince George’s County Police Department.According to his plea agreement, from December 8, 2012 through July 17, 2013, Bush committed seven bank robberies, stealing a total of $38,894. In each robbery, Bush handed the teller a note demanding money. Most of the notes also stated that Bush had a gun or threatened some other harm and Bush often implied that he had a weapon. The banks were located in Upper Marlboro, Lanham, Severna Park, Gambrills, Laurel, Bowie, and Glen Burnie, Maryland.
Moments after the robbery in Glen Burnie on July 17, 2013, an Anne Arundel County Police officer responding to the bank robbery saw Bush in the passenger seat of a vehicle removing the distinctive sweater that he wore during the robbery. The vehicle was being driven by a woman, later identified as Bush’s girlfriend, Jacqueline Isaacs. The officer attempted to conduct a traffic stop, but Isaacs sped off and led police on a high speed pursuit. Isaacs and Bush continued to flee from the officers for more than ten miles, eventually crashing into a van. Officers arrested Bush and Isaacs who were taken to the hospital and treated for injuries sustained during the crash.
The vehicle was searched and officers recovered the mobile phones used by Bush and Isaacs, the demand note, shirt and glasses worn by Bush during the robbery, and cash stolen from the bank.
Jacqueline Isaccs, age 56, also of Fort Washington, pleaded guilty to the July 17, 2013, bank robbery and was sentenced to 37 months in prison.
United States Attorney Rod J. Rosenstein praised the FBI, Anne Arundel County Police Department and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.