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8 July 2014
Attorney General Holder Urges International Effort to Confront Threat of Syrian Foreign FightersRead the Press Release
In a speech Tuesday, Attorney General Eric Holder called Syria "a cradle of violent extremism" and urged multilateral law enforcement action to confront the security threat posed by radicalized individuals from the United States and Europe traveling there.
An estimated 7,000 foreign fighters, including dozens of Americans, have streamed into Syria to participate in the conflict there. These individuals can link up with violent extremist groups operating in the region and then seek to return to their home countries with training in how to carry out violence on a large scale. Attorney General Holder said the U.S. and its allies have a mutual interest in confronting this trend, observing that the ability of citizens of European nations to travel, visa-free, to the United States--and likewise, U.S. citizens' ability to freely visit Europe--means that "the problem of fighters in Syria returning to any of our countries is a problem for all of our countries."
Holder called for a four-part strategy to counter the threat. The approach includes enacting statutes that allow governments to prosecute planning activities undertaken by radicalized extremists seeking to aid terrorist groups. Holder also pointed to the Federal Bureau of Investigation's undercover operations as a successful method for identifying violent extremists and disrupting their plots. He also called for more information sharing among nations about travelers to Syria, and for expanded outreach to key communities in order to prevent individuals from becoming radicalized in the first place.
"In the face of a threat so grave, we cannot afford to be passive," Holder said. "Rather, we need the benefit of investigative and prosecutorial tools that allow us to be preemptive in our approach to confronting this problem. If we wait for our nations’ citizens to travel to Syria or Iraq, to become radicalized, and to return home, it may be too late to adequately protect our national security."
The Attorney General spoke in Oslo at the U.S. ambassador's residence. The remarks followed one-on-one meetings earlier Tuesday with both the Prime Minister of Norway and the country’s Minister of Justice. In 2013, Norway amended its laws to criminalize preparatory acts to terrorism, including training for terrorism, preparation for terrorism and participation in a terrorist organization. In addition, last month the Norwegian government announced a 30-point "Action Plan Against Radicalism and Violent Extremism" that focuses on civic engagement and detection of threats. Holder praised both steps in his remarks Tuesday and said the United States looked forward to continued cooperation with Norway on these matters.
Later this week, Attorney General Holder travels to London for the Sixth Annual Meeting of the Quintet of Attorney Generals from the United States, United Kingdom, Canada, Australia and New Zealand. The issue of Syrian foreign fighters is expected to be part of those discussions as well.
A copy of the Attorney General's remarks appears below.
Thank you for those kind words – and thank you all for such a warm welcome. Ladies and gentlemen; distinguished guests; leaders and citizens – it is a pleasure to be in Norway. And it’s a great privilege to be in the beautiful city of Oslo today.
I’d like to thank the Norwegian government – and especially Prime Minister [Erna] Solberg and Minister of Justice [Anders] Anundsen, with whom I met earlier today – for their hospitality. I’d also like to recognize our Charge, Julie Furuta-Toy, and the hardworking men and women of the U.S. Embassy for bringing us together – and for all that they do, every day, to advance our shared interests.
It’s an honor to join them – and to stand with all of you – in strengthening the ties that bind our nations together; in discussing some of the most critical challenges the international community must confront; and in reaffirming our mutual commitment to the values we share, and the high ideals – of democracy, liberty, and equal justice under law – that have defined our nations’ friendship over the past two centuries.
That friendship, and those values, have deep roots. Norwegian-Americans have played an important role in the development of our country. And your citizens and values have had an impact around the world. Two hundred years ago, Norway ratified a constitution that asserted certain essential and immutable rights. Through centuries of triumph and challenge, our people and our governments have both been guided by a shared understanding that “all people are born free and equal.”
Today, Norway is a leader in extending worldwide the promise of equality and justice, through its own development work overseas, and through its support of international institutions. And Norway leads global efforts to address urgent threats – most recently in Syria, where Norwegian and American personnel are working side-by-side to rid that country of chemical weapons. Around the world, Norway is recognized as a champion of democracy and human rights. And, for decades, you’ve been leading by example.
After all, as history teaches us – and as you’ve seen here in Norway and we in the United States – progress is not inevitable. And our democratic values, our open societies – and our commitment to tolerance and inclusion – must be continuously protected against agents of intolerance, extremism, and hate.
Particularly when hatred and extremism take expression in acts of violence and terror, we must be resolute in our protection of equal rights, democracy, and the rule of law. And we must be both innovative and aggressive in combating violent extremism in all its forms.
It was just three years ago this month that Norway endured devastating attacks on the government quarter of Oslo and a Workers’ Youth League summer camp – heinous acts that shocked citizens everywhere, and earned swift condemnation and sympathy from around the world – as President Obama stated, our hearts went out to you. Horrific crimes like these are not only terrible tragedies for the individuals and the nations targeted; they test our fortitude and challenge the very foundations of who we are. Yet Norway has not faltered or changed its values – and is an example for the world in this regard as well.
Like Norway, the United States is all too familiar with domestic threats, having suffered deadly attacks on our soil – including against government buildings, places of worship, and sporting events. These attacks, like the attacks you suffered here in Norway, share a common theme: they are attacks on tolerance, in the name of violent extremist ideologies.
Under the Obama Administration, while we have acted to protect our country and our allies, we have also redoubled our commitment to civil rights and to tolerance. This is what violent extremists most fear, for their goal is to undermine open societies. At the same time, we also have joined with our international partners to ensure that there is no impunity for those who seek to commit terrorist attacks. Now, Norway, the United States, and countries around the world face a new threat – the possibility that violent extremists fighting today in Syria, Iraq, or other locations may seek to commit acts of terror tomorrow in our countries as well.
U.S. intelligence officials estimate that nearly 23,000 violent extremists are currently operating in Syria. Among these are over 7,000 foreign fighters – among whom are dozens of Americans, a number that is growing.
We have a mutual and compelling interest in developing shared strategies for confronting the influx of U.S.- and European-born violent extremists into Syria. And because our citizens can freely travel, visa-free, from the U.S. to Norway and other European states – and vice versa – the problem of fighters in Syria returning to any of our countries is a problem for all of our countries.
This is a global crisis in need of a global solution. The Syrian conflict has turned that region into a cradle of violent extremism. But the world cannot simply sit back and let it become a training ground from which our nationals can return and launch attacks. And we will not.
In the face of a threat so grave, we cannot afford to be passive. Rather, we need the benefit of investigative and prosecutorial tools that allow us to be preemptive in our approach to confronting this problem. If we wait for our nations’ citizens to travel to Syria or Iraq, to become radicalized, and to return home, it may be too late to adequately protect our national security.
That’s why we need to adopt a multilateral four-pronged strategy to combat this threat, to counter violent extremism in all its forms, and to keep our citizens safe.
The first element of our united approach must be to ensure that there are laws in our systems that enable governments to properly police that threat. In its Rabat Memorandum, the Global Counterterrorism Forum – a group of 30 countries from around the world, working in partnership with the UN – stated that “Criminalizing preparatory acts, such as conspiracy, terrorist fundraising, terrorist recruitment, planning and training, particularly when a terrorist attack has not yet been carried out, is vital in an effective criminal justice preventive approach to counterterrorism.” In this regard, the U.S. relies on a statute that criminalizes the providing of “material support to terrorist organizations.” Our material-support law, which was originally enacted in 1994 and amended after the attacks in New York on September 11, 2001, bars not only contributions of personnel, cash, weapons and other tangible aid to designated terrorist organizations, but also intangible means of support – such as training, service, and expert advice or assistance. Similarly, in 2013, Norway amended its laws to criminalize preparatory acts to terrorism, including training for terrorism, preparation for terrorism and participation in a terrorist organization Likewise, in 2012, France enacted a new statute that enables prosecutors to charge individuals with “criminal association with the intent to commit terrorist acts.” Earlier this year, French authorities sentenced the nation’s first three defendants under this new law; all three were plotting to travel to Syria. Today, I urge governments around the world to consider similar measures that criminalize the preparatory acts committed by those with terrorist plans.
The second part of our comprehensive strategy looks to ensure that we have in place law enforcement investigative tools and techniques that are both effective and protective of individual rights and the rule of law. In this regard, we have found undercover operations – which the Federal Bureau of Investigation pioneered in fighting transnational organized crime – to be essential in fighting terrorism as well. In the United States, the FBI has already conducted undercover operations that have identified individuals with intentions to travel to Syria. These operations are conducted with extraordinary care and precision, ensuring that law enforcement officials are accountable for the steps they take – and that suspects are neither entrapped nor denied legal protections. Here, too, the Global Counterterrorism Forum’s Rabat Memorandum calls for such techniques to be applied in countries around the world: one of the “good practices” it advocates is that countries “Provide a Legal Framework and Practical Measures for Undercover Investigations of Terrorist Suspects or Organizations.”
Third: in order to further our investigative capabilities, we must strengthen international cooperation, in a variety of respects. As an initial matter, we must prioritize the sharing of traveler information as a potential way to prevent would-be foreign fighters from going to Syria in the first place – and tracking those who come back. The United States is committed to doing its part in this regard. As we speak, through law enforcement agencies such as the FBI, U.S. authorities are working with Interpol to disseminate information on foreign fighters. We encourage other countries to use Interpol – and Interpol notices – to combat the foreign-fighter phenomenon. And we are actively supporting Interpol’s Fusion Cell, which focuses on information-sharing relating to foreign fighters. In fact, the U.S. has provided personnel, including FBI agents, to support this specialized office.
While we are committed to ensuring that we protect the safety of our fellow citizens, we are also committed to protecting their privacy. Alongside policymakers in Brussels, we’re also working to attain an “umbrella” data-sharing agreement between the United States and the European Union, that would strengthen the already strong protections that are presently in existence and that ensure that law enforcement information is shared effectively, and in accordance with data privacy principles. This agreement will guarantee that there will be no diminishment of the key exchanges of law enforcement information, including terrorism information, that is critical to the safety of citizens in Europe, the U.S., and around the world. And as a step to advance this endeavor, last month – in Athens – I announced a United States commitment that the Obama Administration would seek legislation to create the ability – for non-U.S. persons – to seek judicial redress for access and rectification, and for willful or intentional disclosure, of law enforcement information transferred to the United States. This is an historic commitment by the United States to extend privacy protections beyond U.S. persons in this context. It is imperative that we reach an “umbrella” agreement in this regard as soon as possible. The time for posturing has long past. It is time for nations that have long shared fundamental views about privacy to act together.
Countries must also effectively use mutual legal assistance and extradition to counter foreign fighters. Here, too, the Rabat Memorandum of the Global Counterterrorism Forum is instructive: “Because terrorism often transcends national boundaries, timely and effective international cooperation is indispensable to a criminal justice response to terrorism.” Through international mutual legal assistance, the U.S. Department of Justice has provided evidence to countries for use in prosecutions of terrorist organizations – including terrorist groups that were recruiting others to fight in Syria. We continue to assist foreign partners around the globe by acting on mutual legal assistance requests and providing evidence to support those criminal investigations and prosecutions. And we believe it’s critical that countries develop their abilities to effectively engage in mutual legal assistance – including by strengthening their central authorities – so that we can work together to counter this shared threat.
International cooperation also means working together to build the capacity of other nations, as Norway does in so many different contexts. Norwegian and U.S. Department of Justice legal advisors have worked together to build Rule of Law in Georgia and Moldova. And to enhance similar efforts on a global scale, the U.S. Department of Justice is providing capacity-building assistance to help our partners build fair and transparent justice systems that will allow their countries to confront transnational crime and terrorism, including the problem of foreign fighters. Applying the standards of the UN Counterterrorism Treaties, and the best practices of the Rabat Memorandum, our capacity-building work, and that of our foreign partners, has helped advance laws permitting police and prosecutors to more effectively investigate and prosecute suspected foreign fighters, within the Rule of Law – leading to the disruption of foreign fighters and the dismantlement of organizations that recruit would-be fighters to travel to Syria. Through ongoing programs in places such as the Balkans, Africa, and elsewhere, we continue to work with international partners to help them stem the flows of foreign fighters; to use the tools they have to more effectively impede their movements; and to assist in the investigation and prosecution of foreign fighters once captured.
Today, I challenge additional nations to step forward, as Norway has. Commit to robust, and privacy-protective, data-sharing in service of our mutual security. Pledge support for Interpol’s “Transnational Fighter Initiative.” Support mutual legal assistance and capacity building. And urge others to do their part by participating fully in these efforts – which will be effective only to the extent that they are as comprehensive as possible.
The fourth and final element of our strategy is founded on the notion that strong laws, effective investigative tools, and robust information-sharing must be matched with public engagement – and extensive community outreach. We must seek to stop individuals from becoming radicalized in the first place by putting in place strong programs to counter violent extremism in its earliest stages. In my time here in Norway, I have had the chance to learn about – and have been deeply impressed by – Norway’s Action Plan Against Radicalization and Violent Extremism.
Indeed, I have found it critical to engage in international exchanges with my counterparts regarding how we can do better on combating radicalization, and to learn from each other. I will take home with me important lessons from Norway’s experience. These lessons will help us implement our own National Strategy and Strategic Implementation Plan, which is led by the Justice Department, the FBI, the Department of Homeland Security, and the National Counterterrorism Center.
Our approach depends on building mutual trust and respect with members of communities across the country – so that we can understand their needs and concerns and to foster open dialogue with community leaders and citizens. This enables us to work with them to mitigate tensions and identify emerging threats.
At the heart of these engagement efforts in the United States are our United States Attorneys, the chief federal prosecutors in each of the jurisdictions they serve. Since 2012, our U.S. Attorneys have held or attended more than 1,700 engagement-related events. And the resulting relationships have not only served to build trust. They have also produced valuable cooperation, in some cases spurring community members to alert law enforcement about individuals who show an inclination to turn to violence.
Across the United States and in countries around the world, such counter-radicalization programs show significant promise. They serve our broader aim of fostering tolerance, inclusion, and understanding – which are themselves powerful tools against violent extremism. But ultimately, our goal must be not just to fight radicalization or apprehend dangerous individuals. At its core, this work is about forging more just and open societies – and building a more peaceful world.
That’s why it’s especially fitting that we recommit ourselves to these efforts here in Oslo – where so many of mankind’s highest ideals and aspirations have been recognized. For more than a century, this city has welcomed some of the most devoted peacemakers the world has ever known – from the Reverend Dr. Martin Luther King, Jr., who advocated for “a more noble civilization” in the midst of America’s long night of racial injustice; to Nelson Mandela, who insisted that “an injury to one is an injury to all.”
Throughout history, these pioneers of peace have called us to recognize that our capacity for courage has no limit. The struggle for human rights, civil rights, and equal justice knows no borders or boundaries. Yet their stories also remind us that, for all the progress that they have made possible, our journey still stretches beyond the horizon. And our work has no end.
You know as well as anyone that the work ahead will not be easy. None of the challenges we face are simple or straightforward. We will suffer setbacks. But so long as we remain committed to standing together, working together, and striving together – as people of courage, as leaders of conviction, and as nations of high ideals – I cannot help but feel optimistic about where our joint efforts will lead us. I thank you all, once again, for your leadership, your collaboration, and your friendship. And I look forward to everything the United States and the Kingdom of Norway will achieve together in the months and years to come.
Thank you.
Army National Guard Soldier Pleads Guilty in Connection with Bribery and Fraud SchemeRead the Press Release
A soldier of the U.S. Army National Guard pleaded guilty today for his role in a wide-ranging corruption scheme involving fraudulent recruiting bonuses from the Army National Guard Bureau.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Robert Pitman for the Western District of Texas made the announcement.
Sergeant First Class Eduardo Ruesga-Larracilla, 41, of San Antonio, Texas, pleaded guilty today to one count of conspiracy to commit bribery and wire fraud, and one count of bribery of a public official.
The case against Ruesga arises from an investigation that has led to charges against 26 individuals, 24 of whom have pleaded guilty.
According to court documents, in approximately September 2005, the National Guard Bureau entered into a contract with Document and Packaging Broker Inc. (Docupak) to administer the Guard Recruiting Assistance Program (G-RAP). The G-RAP was a recruiting program that offered monetary incentives to soldiers of the Army National Guard who referred others to join the National Guard. Through this program, a participating soldier could receive up to $2,000 in bonus payments for a referral. Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account. To participate in the program, soldiers were required to create online recruiting assistant accounts.
Ruesga admitted that between approximately January 2010 and approximately October 2011, he conspired with a recruiter and paid him for the personal information of potential Army National Guard soldiers. Ruesga further admitted that, in order to obtain fraudulent bonuses, he used the personal information for these potential soldiers fraudulently to claim that he was responsible for referring these soldiers for enlistment in the National Guard.
Ruesga is scheduled to be sentenced on Oct. 9, 2014 before U.S. District Judge Orlando L. Garcia in San Antonio, Texas.
This case is being investigated by the San Antonio Fraud Resident Agency of the Army Criminal Investigation Command’s Major Procurement Fraud Unit. The case is being prosecuted by Trial Attorneys Sean F. Mulryne, Heidi Boutros Gesch, and Mark J. Cipolletti of the Criminal Division’s Public Integrity Section.Apollo E. Nida Sentenced for Conspiring to Commit Mail, Wire and Bank FraudRead the Press Release
Nida Used Fake Collection Agencies And Databases To Target Identity Theft Victims
ATLANTA - Apollo E. Nida, 35, of Atlanta, Ga., was sentenced today for conspiring to commit mail, wire and bank fraud in a complex fraud scheme which spanned over four years and harmed over 50 victims.
“Identity theft continues to be a focus for my office as thieves continue to refine devious schemes to exploit our citizens,” said United States Attorney Sally Quillian Yates. “This defendant organized two separate fake collection agencies, used them to harvest data from databases like Equifax and LexisNexis, and then deployed that data in identity theft attacks tailored to the vulnerabilities and characteristics of each victim.”
“Today’s sentencing exemplifies impartial justice regardless of economic class or perceived celebrity status. Nida’s sentence should be an eye opener for other like-minded criminals who scheme to steal victims’ identities, defraud them and ignore the consequences of their actions,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.According to United States Attorney Yates, the charges and other information presented in court: Beginning in August 2009, Nida, 35, of Atlanta, Ga., and others obtained stolen checks by stealing them or buying them from other criminal associates. The stolen checks involved in the scheme included United States Treasury Checks, as well as checks stolen from the pension fund of Delta Airlines. Additionally, the conspirators obtained funds by filing fraudulent tax returns with the Internal Revenue Service and making fraudulent claims against the U.S. Department of Housing and Urban Development, and at least eleven states, all in the names of victims whose identities had been stolen.
Many of these checks were mailed to a large network of mailboxes rented by the conspirators at UPS Stores in the Northern District of Georgia and throughout the nation, for eventual forwarding to the conspirators. The conspirators also obtained fraudulent auto loans secured by vehicles that they had no ownership interest in whatsoever. To convince banks to issue these loans, Nida and his conspirators created fake documents and websites appearing to belong to legitimate auto dealerships.
Once the conspirators obtained the stolen checks, they laundered them through numerous victim financial institutions. Often, the conspirators laundered the checks by opening bank accounts in the names of the payees listed on the face of the checks. This involved impersonating each payee and stealing his or her identity. The conspirators prepared for these impersonations by researching their victims using databases like LexisNexis and Equifax, to which they obtained access through fake collection agencies they had opened as part of the scheme. Sometimes, the conspirators negotiated checks by laundering them in bulk through accounts which appeared to belong to legitimate businesses, such as one in the name “Signature Tax Collections.”
The illegal conduct ended only when agents of the U.S. Secret Service confronted Nida and seized his laptop computer, pursuant to a search warrant, on September 13, 2013.
Nida has been sentenced to 8 years in prison to be followed by 5 years of supervised release. U.S. District Court Judge Charles A. Pannell, Jr. also ordered Nida to pay restitution to the victims of his offenses, and scheduled a separate hearing to take place on July 17, 2014, to calculate the restitution amount. Nida was convicted on May 6, 2014, when he pleaded guilty.This case was investigated by the United States Secret Service and the Georgia Governor’s Office of Consumer Protection.
Assistant United States Attorney Alana R. Black 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/.
Angel Negron-Beltran Sentenced to 38 Months in Prison for Conspiracy to Possess with Intent to Distribute CocaineRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez today sentenced Angel Negron-Beltran to 38 months in prison for conspiracy to possess with intent to distribute cocaine, United States Attorney Ronald W. Sharpe announced.
Negron-Beltran, 53, was arrested as part of the investigation of Roberto Tapia, Director of the Virgin Islands Department of Planning and Natural Resources (DPNR) Division of Environmental Enforcement. On November 7, 2013, Negron-Beltran was charged in a 69-count indictment, along with seven other defendants, including former Virgin Islands Police Department Sergeant Angelo Hill, Raymond Brown, Hector Alcenio, Stephen Torres, and Eddie Lopez-Lopez, Walter Hill, and Edwin Monsanto. On January 29, 2014, Negron-Beltran pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine.
In addition to the 38 months’ incarceration, Negron-Beltran was placed on four years’ supervised release, and ordered to pay a $100 special assessment.
The case was investigated by the Public Corruption Task Force, which comprises the Federal Bureau of Investigation (FBI); U.S. Drug Enforcement Administration (DEA); Virgin Islands Police Department; U.S. Marshals Service; Internal Revenue Service Criminal Investigation Division (IRS-CI); U.S. Department of Homeland Security, Homeland Security Investigations (HSI); U.S. Customs and Border Protection (CBP); United States Coast Guard; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Office of the Virgin Islands Inspector General. Assistant U.S. Attorneys Kelly B. Lake and Kim Lindquist prosecuted the case.
Alexandria Man Pleads Guilty to Million-Dollar Investment Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – Christopher Cunningham, 46, of Alexandria, Virginia, pleaded guilty today to a wire fraud scheme in which Cunningham solicited investments, typically from elderly clients, based on fraudulent promises and representations.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Kathy A. Michalko, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema.
In a statement of facts filed with the plea agreement, Cunningham admitted to conducting an investment fraud scheme from approximately 2005 to 2011. During that time, Cunningham worked as an investment adviser, and in that position, he solicited investments from clients, who typically were elderly. Among other things, Cunningham promised these clients guaranteed returns and made certain false representations, including that he was not being personally compensated in connection with their investments and the money could be paid back in a single day if needed. Once he obtained the money from these clients, however, Cunningham used it to fund his private companies and for his personal use. Cunningham repaid very little of his clients’ investments, and as a result of his fraud, investors lost more than $1,000,000.
Cunninghamfaces a maximum penalty of twenty years in prison when he is sentenced on October 3, 2014.
This case was investigated by the U.S. Secret Service with the assistance of the Virginia State Corporation Commission’s Division of Securities and Retail Franchising. Assistant U.S. Attorney Chad Golder is prosecuting the case.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-225.
Albuquerque Man Sentenced to Thirty Years in Federal Prison for Producing Child PornographyRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez and Carol K.O. Lee, Special Agent in Charge of the FBI’s Albuquerque Division, announced that Antonio Gutierrez, 44, of Albuquerque, N.M., was sentenced today to 30 years in federal prison for his conviction on three production of child pornography charges. After he completes his prison sentence, Gutierrez will be on supervised release for five years and will be required to register as a sex offender. Gutierrez also was ordered to pay $14,060 in restitution to the victim of his criminal conduct.
Gutierrez was arrested in Aug. 2012, based on a criminal complaint alleging that he induced a minor to engage in sexually explicit conduct for the purpose of producing child pornography. Gutierrez subsequently was charged with three counts of production of child pornography in a superseding indictment alleging that he committed the offenses between Aug. 2011 and Nov. 2011 in Bernalillo County, N.M.
Gutierrez was convicted on all three charges in the superseding indictment on Jan. 27, 2014, after a five-day jury trial. The evidence at trial established that Gutierrez gave the victim a cellphone in May 2011, on her 16th birthday, and told her that he would pay for the first month of service. In June 2011, Gutierrez told the victim that he would pay the cellphone service bill if she repaid him with nude photographs of herself, and the victim used her cellphone to take two photographs of herself without clothes and sent the images to Gutierrez’s cellphone. This began a monthly cycle of Gutierrez refusing to pay for the victim’s cellphone service unless she provided him with nude photographs of herself. With each passing month, Gutierrez escalated the nature and extent of the sexual conduct in which the victim was required to engage when photographed.
In Nov. 2011, after the victim reported Gutierrez’s unlawful conduct to the Albuquerque Police Department, officers executed a search warrant at Gutierrez’s residence and seized computers, computer-related media and cellphones. A subsequent forensic examination of Gutierrez’s personal computer revealed many sexually explicit photographs, including sexually explicit photographs of the victim taken by Gutierrez. Gutierrez testified in his own defense and denied that he produced any child pornography. Gutierrez also claimed that he did not know how the child pornography ended up on his computer.
This case was investigated by the Albuquerque office of the FBI, the Albuquerque Police Department and the New Mexico Regional Computer Forensic Laboratory. Assistant U.S. Attorneys Jennifer M. Rozzoni and Marisa A. Lizarraga prosecuted the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 75 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Alabama Hospital Employee Pleads Guilty to Identity TheftRead the Press Release
Kamarian D. Millender, of Dothan, Alabama,pleaded guilty today to one count of aggravated identity theft , Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama announced.
According to court documents, Millenderworkedas a lab technician at a medical facility in Dothan. He and others stole patient medical records, which contained personal identification information. Millender used this information to file false tax returns in an attempt to obtain fraudulent tax refunds from the Internal Revenue Service (IRS). Millender’sactions led to the filing of more than 100 false federal tax returns, which victimized approximately 73 individuals and sought to defraud the IRS out of approximately $536,028. The IRS was successfully able to stop the vast majority of the falsely claimed refunds, however an estimated $18,915 in refunds were issued.
As a result of his plea, Millenderwill be sentenced to serve the statutory mandatory sentence of two years in prison and is subject to a maximum fine in the amount of $250,000.
This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Charles M. Edgar Jr. and Michael Boteler of the Tax Division are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at the division website .
7 July 2014
West Monroe Man Sentenced to 120 Months in Prison for Possessing Child PornographyRead the Press Release
MONROE, La. –A West Monroe man was sentenced to 120 months in prison and to five years of supervised release for possessing more than 50 images of child pornography on his home computers, U.S. Attorney Stephanie A. Finley announced today.
David Wayne Greer, 42, of West Monroe, La., was sentenced by U.S. District Judge Robert G. James for one count of possession of child pornography. According to evidence presented at the guilty plea on February 18, 2014, the state of Louisiana’s Attorney General’s Office High Technology Crime Unit detected child pornography being downloaded to a computer in West Monroe in March of 2013. Later that same month, agents searched the home where Greer was residing. Computers from the home were searched and 50 images of child pornography were found. The pornography was of adults sexually abusing pre-pubescent children. Some of the children in the images were as young as one year.
Homeland Security Investigations, the Louisiana Attorney Generals’ Office High Technology Crime Unit and the Ouachita Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp.
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 (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.Wentzville Man Pleads Guilty to Multiple Armed Bank Robberies and Shooting of Missouri State TrooperRead the Press Release
St. Louis, MO – WARREN J. GLADDERS, Wentzville, MO, pled guilty to three armed bank robberies committed in July, August and September 2013. On July 7, 2013, Gladders took approximately $7,000 from the Reliance Bank located in Creve Coeur, Missouri. On August 2, 2013, Gladders took approximately $5,000 from First National Bank located in Weldon Springs, Missouri. On September 20, 2013, Gladders took approximately $43,000 from the First Bank located in Marthasville, Missouri. In each instance, Gladders entered the banking institution and threatened the bank teller(s) while displaying a firearm.
On September 20, 2013, Gladders fled the scene of his final bank robbery in his personal vehicle. Gladders was traveling at a high rate of speed. A witness outside of First Bank observed the robbery in progress. The witness was able to obtain a partial license plate number and description of Gladders’ vehicle. That information was provided to law enforcement officials. A Missouri State Highway Patrol trooper observed a vehicle matching the description and license plate number and followed it. The trooper pursued and caught up to Gladders and his vehicle. The trooper activated his vehicle’s emergency lights and sirens. Gladders eventually pulled his vehicle over. The trooper exited his vehicle and demanded that Gladders get out of his vehicle. As the trooper was exiting his vehicle, Gladders exited his.
As Gladders exited his vehicle, he raised the Smith and Wesson revolver possessed by him and shot at the trooper approximately four times. One of those shots struck the trooper in the center of the trooper’s chest. The trooper was protected by his protective vest. The bullet from Gladders’ firearm penetrated the vest but not the trooper’s body. The trooper was able to return fire. The trooper struck Gladders at least once in the leg. Gladders fell to the ground and the firearm fell out of Gladders’ hand. Gladders attempted to regain control of his firearm. The trooper fired additional warning shots at Gladders -- not striking him. Gladders stopped moving at that point. The trooper was able to remove Gladders’ firearm from his proximity and place Gladders under arrest. Multiple law enforcement officials from various agencies responded to the scene. Gladders was taken into custody and transported for medical attention.
Following Gladders’ arrest, search warrants were obtained for his vehicle, residence and business. Among other things, most of the items worn or used by Gladders during the armed bank robberies were located and seized by law enforcement. Furthermore, an officer recovered and seized what is commonly referred to as a “sawed-off shotgun” from inside Gladders’ vehicle.
Gladders entered his plea before United States District Judge Carol E. Jackson, who has set sentencing for October 16, 2014.
Each armed bank robbery charge carries a maximum penalty of 20 years in prison and/or fines up to $250,000. For his use and discharge of the firearm, Gladders is facing a maximum possible penalty of life in prison. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
In addition to the Federal Bureau of Investigation, this case was investigated by the Missouri State Highway Patrol, the Warren County Sheriff’s Department, the St. Charles County Sheriff’s Department, the Creve Coeur Police Department, the Montgomery County Sheriff’s Department, the Jonesburg Police Department and the Wright City Police Department, along with coordination amongst the Warren County, St. Charles County and St. Louis County Prosecuting Attorneys’ Offices.
Visalia Doctor Pleads Guilty to Illegally Dispensing OxycodoneRead the Press Release
FRESNO, Calif. — Terrill Eugene Brown, 61, of Visalia, pleaded guilty today to causing the distribution and dispensing of oxycodone and structuring financial transactions to evade a reporting requirement, United States Attorney Benjamin B. Wagner and Fresno County District Attorney Elizabeth Egan announced. In addition, Brown agreed to forfeit more than $182,000 and three BMW sedans that were involved in or obtained as a result of his criminal activity.
According to court documents, Brown, a medical doctor formerly licensed by the State of California, prescribed large quantities of highly addictive prescription drugs, including oxycodone and hydrocodone, without medical necessity. Brown prescribed to customers who did not have a legitimate medical need and out of the usual course of his professional practice. Brown deposited the cash earned from these prescriptions into different personal bank accounts in a manner designed to avoid currency transaction reporting requirements.
Oxycodone, also known as “oxy,” is a narcotic analgesic or painkiller and is classified as a Schedule II controlled substance. Demand for oxycodone-based prescription pain medication has grown to epidemic proportions in the United States, and dealers profit by selling such medication on the street. Oxycodone-based Schedule II drugs have a high potential for abuse, and users will often crush and snort the pills or dissolve and inject them to get an immediate high. The abuse can lead to addiction, overdose, and sometimes death.
This case is the product of an investigation by the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, and the Medical Board of California, California Bureau of Investigation. The case is being prosecuted by Nathan Lambert, a Fresno County Deputy District Attorney sworn in as a Special Assistant U.S. Attorney for the case, and Assistant United States Attorneys Kathleen A. Servatius, Laurel J. Montoya, and Heather M. Jones.
Brown will remain out of custody until his sentencing date. He is scheduled to be sentenced by Judge Lawrence J. O'Neill on September 22, 2014. Brown faces a maximum statutory penalty of 20 years in prison and a $1 million fine for illegally causing the dispensing of a controlled substance, and a maximum sentence of 10 years and a $500,000 fine for structuring currency transactions to avoid a reporting requirement. The actual sentence, however, will 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.
This case is being brought as part of Operation Footprint, a nationwide law enforcement initiative led by the U.S. Attorney’s Offices, the IRS-Criminal Investigation, the DEA, and the U.S. Postal Inspection Service. Operation Footprint targets large drug trafficking organizations by identifying the transfer of drug proceeds through financial institutions, bulk cash smuggling and other forms of money transfers. Operation Footprint is focused on bringing criminal charges based on Bank Secrecy Act violations in addition to violations of the Controlled Substances Act and the Money Laundering Control Act.
This case is also the product of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
In a related case, on April 11, 2013, a federal grand jury charged 13 defendants in an indictment that alleges that they obtained prescriptions for oxycodone, hydrocodone, and medical marijuana cards from Dr. Brown in Modesto. They recruited other individuals to obtain prescriptions and marijuana cards from the doctor by offering them payments in return for the prescriptions and marijuana cards. After obtaining the oxycodone and hydrocodone pills, the defendants shipped the pills to other states.
Eight defendants in that case have been sentenced as follows:
David Ruem, of Tacoma, Wash.: 10 years and one month in prison
Phary Chim, of Kent, Wash.: four years and three months in prison;
Sdey Chim, of Modesto: three years and 10 months in prison;
Chanrath Yath, of Modesto: three years and four months in prison;
Phally Thach, of Modesto: two and a half years in prison;
Raeb Chou, of Modesto: two years in prison;
Cindy Doeum, of Kent, Wash.: three years of probation; and
Chantha Chim, of Murietta: three years of probation.
The charges against the remaining five defendants are pending. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Violent Crime and Human Trafficking ConferenceRead the Press Release
FARGO - United States Attorney Timothy Q. Purdon has announced that the Violent Crime and Human Trafficking Conference will be held August 12, 13, and 14 in Sioux Falls, South Dakota. All sessions will be held at the Washington Pavilion.
The conference is co-sponsored by U.S. Attorney Brendan V Johnson, District of South Dakota, the Department of Justice Office for Victims of Crime, and Avera Health.
The first day, August 12, will focus on training for medical professionals, advocates, social workers, counselors, and others in the health care field. Additional training on the first day will include the perspective from providers, the patient’s needs, and the public’s responsibility.
The remaining day and a half of the conference, August 13 and 14, is open to the public and will cover key topics such as; increases in human trafficking and other violence against women taking place in the North Dakota oil fields, internet predators in the Dakotas, sexual assault in Indian country, family violence, and working with child victims of physical and sexual assault.
The conference will feature speakers and sessions that have been specifically designed to highlight standards of compassionate care for victims of crime, and encourage coordination of that care among healthcare providers, advocates, policy makers, and law enforcement.
Among the featured speakers on August 13 will be Elizabeth Smart-Gilmour, a sexual abuse survivor, who was abducted from her bedroom in the family’s Salt Lake City home in 2002. The keynote speaker on August 14 will be a victim from the Penn State University sex scandal that involved Jerry Sandusky, an assistant football coach under Joe Paterno.
U.S. Attorney Purdon and U.S Attorney Johnson have made the prosecution of violent crimes and human trafficking top priorities in their districts. In North Dakota, the recent Operation Vigilant Guardian sting has led to sex trafficking charges against 14 defendants in western North Dakota. In South Dakota, since 2009, there have been 23 cases of sex trafficking prosecuted.
The conference is free and open to the public. There is a $10 lunch fee for the August 12, Avera Health sessions.
Violent Crime and Human Trafficking Conference to Be Held in AugustRead the Press Release
United States Attorney Brendan V. Johnson has announced that the Violent Crime and Human Trafficking Conference will be held on August 12, 13, and 14, 2014. All sessions will be held at the Washington Pavilion - Mary W. Sommervold Hall, located at 301 S. Main Avenue in Sioux Falls, South Dakota.
The conference is co-sponsored by U.S. Attorney Timothy Q. Purdon, District of North Dakota, the Department of Justice Office for Victims of Crime, and Avera Health.
The first day, August 12, will focus on training for medical professionals, advocates, social workers, counselors, and others in the healthcare field. U.S. Attorney Johnson will begin the conference by providing an overview of the history, current status, and future trends of human trafficking and sexual assault in South Dakota. Additional training on the first day will include the perspective from providers, the patient’s needs, and the public’s responsibility.
The remaining day and a half of the conference, August 13 and 14, is open to the public and will cover key topics, such as increases in human trafficking and other violence against women that is occurring in the North Dakota oil fields, Internet predators in the Dakotas, sexual assault in Indian country, family violence, and working with child victims of physical and sexual assault. The conference will conclude at 12:00 noon on Thursday, August 14.
The conference will feature speakers and sessions that have been specifically designed to highlight standards of compassionate care for victims of crime, and promote coordination of that care among healthcare providers, advocates, policy makers, and law enforcement.
Among the featured speakers on August 13 will be Elizabeth Smart-Gilmour, a sexual abuse survivor, who was abducted from her bedroom in the family’s Salt Lake City home in 2002. The keynote speaker on August 14 will be a victim from the Penn State University sex scandal that involved Jerry Sandusky, a former assistant football coach under the late Joe Paterno.
U.S. Attorney Johnson and U.S Attorney Purdon have made the prosecution of violent crimes and human trafficking top priorities in their districts. The District of South Dakota has been involved in 23 sex trafficking cases since 2010. In North Dakota, the recent “Operation Vigilant Guardian” sting led to sex trafficking charges against 14 defendants in western North Dakota.
The conference is free admission and is open to the public. There is a $10 lunch fee for the August 12 Avera Health sessions.
For the full conference agenda and to register, please follow this link: http://www.avera.org/experience/avera-victim-witnesshuman-trafficking-conference
Venezuelan Wildlife Dealer Charged with Illegally Trafficking in Marine LifeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and David Pharo, Resident Agent in Charge, U.S. Fish & Wildlife Service (FWS), Office of Law Enforcement, announce that Oscar H. Cordova-Cobian, 42, of Caracas, Venezuela, was arraigned today in Miami on charges he exported, and attempted to export, fish and wildlife, that is, specimens of regulated live corals, live rock, clams, and other marine invertebrates, knowing that said fish and wildlife were possessed, transported, and sold in violation of and in a manner unlawful under the laws, treaties, and regulations of the United States, all in violation of 16 U.S.C. '' 3372(a)(1), (a)(4), and 3373(d)(1)(A).
If convicted, Cordova-Cobian faces a possible sentence of up to five years in prison, a term of supervised release of up to three years, and a criminal fine of up to $250,000. He also faces forfeiture of the wildlife involved in the commission of the Lacey Act violations.
According to statements in the information and other court records, Cordova-Cobian is a resident of Caracas, Venezuela and operates and maintains a website through which he engages in the commercial sale of marine life, including ornamental fish and corals.
In order to protect certain species of fish and wildlife against over-exploitation, the United States is a party to an international treaty known as the Convention on International Trade in Endangered Species of Wild Fauna and Flora, T.I.A.S. 8249, (hereinafter “CITES”). Species are listed by CITES in Appendices, each of which provides a different level of protection. CITES regulates trade in the listed species through a system of permits and certificates (CITES documents), in order to monitor the effects of trade to ensure trade is legal and not detrimental to the survival of the species. Appendix I includes species threatened with extinction that are or may be affected by trade and such trade may take place only in exceptional circumstances. Appendix II includes species that are not presently threatened with extinction, but may become so if their trade is not regulated. CITES, Art. II. Congress has implemented CITES in the United States through the Endangered Species Act, 16 U.S.C. '' 1531-1544. The FWS as the CITES enforcement authority within the United States has published regulations to implement CITES. A list of all the species protected by CITES, the Endangered Species Act, and the FWS regulations is maintained by the CITES Secretariat. 50 C.F.R. § 23.7 and § 23.91.
The information alleges that in mid-May 2014, at Miami International Airport, Cordova-Cobian attempted to export, fish and wildlife, that is, approximately 136 specimens, including CITES App. II regulated live corals, CITES App. II regulated live rock (Scleractinia sp.), CITES App. II regulated clams (Tridacna sp.), and other marine invertebrates, in his checked baggage, for commercial sale to customers in Venezuela.
At no time did Cordova-Cobian apply for or obtain a CITES permit issued by the FWS for the export of CITES Appendix II wildlife from the United States or file a Declaration for the Importation or Exportation of Fish or Wildlife (Form 3-177) with FWS as required by law.
Mr. Ferrer commended the investigative efforts of FWS Office of Law Enforcement, National Oceanic and Atmospheric Administration Fisheries Office of Law Enforcement, the Florida Keys National Wildlife Refuges and the U.S. Customs and Border Protection Air Marine Branch. This matter is being prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald and Antonia Barnes.
An information is only an accusation and a defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
United States Attorney's Office Mourns Death of Federal Judge James TurkRead the Press Release
ROANOKE, VIRGINIA – The United States Attorney’s Office for the Western District of Virginia is saddened to hear the news of the passing of Federal District Court Judge James Turk and offers condolences to Judge Turk’s friends and family in this time of mourning.
“For forty years, Judge Turk worked tirelessly to ensure that the federal judicial system in this District was fair and unbiased,” United States Attorney Timothy J. Heaphy said today. “He brought a level of civility and common courtesy to the bench – qualities that endeared him to the lawyers in this office and all those who practiced before him. His tradition of shaking hands with defendants after their cases concluded was a perfect manifestation of his essential humanity and his ability to recognize the good in all people, regardless of circumstance. For that quality, above all others, Judge Turk will always be remembered.”
U.S. Attorney's Office Is Seeking Information from Those Sickened by Contaminated Eggs in 2010Read the Press Release
The U.S. Attorney’s Office for the Northern District of Iowa is asking people who were sickened by eggs produced by Quality Egg, LLC between about the beginning of 2010 and August 2010 to contact their office.
On June 3, 2014, Quality Egg, LLC (also known as Wright County Egg) and two company officials pled guilty to a misdemeanor charge of introducing adulterated eggs into interstate commerce. The charge resulted from Quality Egg, LLC’s sale of eggs contaminated with Salmonella Enteriditis between about the beginning of 2010 and August 2010.
Anyone who was sickened during this time period from eggs distributed by Quality Egg, LLC is asked to visit the website for the U.S. Attorney’s Office, Northern District of Iowa, at: www.justice.gov/usao/ian or to contact Shari Konarske, Victim-Witness Coordinator, U.S. Attorney’s Office, Northern District of Iowa at (319) 363-6333 or at [email protected].
Two More Defendants Sentenced in Stolen Identity Tax Refund Scheme Resulting in Millions of Dollars in Fraudulent ActivityRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department's Tax Division, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announce that defendants Herve Wilmore Jr., 29, of Aventura, and Delvin Jean Baptiste, a/k/a “Doo Doo,” 29, of Miramar, were sentenced today before U.S. District Judge Robert N. Scola for their participation in a stolen identity tax refund scheme resulting in millions of dollars in fraudulent activity. Wilmore was sentenced to 240 months in prison, to be followed by three years of supervised release. Baptiste was sentenced to 121 months in prison, to be followed by three years of supervised release.
On March 5, 2014, both defendants were convicted by a federal jury in Miami of one count of conspiring to defraud the Internal Revenue Service (IRS), wire fraud, and aggravated identity theft, all in violation of Title 18, United States Code, Section 371, two counts of wire fraud, in violation of Title 18, United States Code, Sections 1343 and 2, and two counts of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2.
According to court documents and evidence presented at trial, the defendants conspired to unjustly enrich themselves by recruiting knowing co-conspirators and unknowing victims to put businesses, bank accounts and Electronic Filing Identification Numbers (EFINs) in their names, through which fraudulent transactions would be conducted. To accomplish this, the defendants used the personal identification information of individuals, many deceased, to prepare and file false and fraudulent income tax returns with the IRS. The defendants would obtain possession of fraudulently obtained refunds in the form of United States Treasury and Refund Anticipation Loan checks diverted to addresses or into bank accounts that they caused to be created and controlled. The defendants would then negotiate the fraudulently obtained federal income tax refunds within each other’s businesses, and elsewhere, to avoid being detected.
According to evidence at trial and court documents, Wilmore, Baptiste and their co-conspirators caused the filing of approximately $35 million in fraudulent federal income tax returns of which the IRS paid out approximately $14 million. Wilmore was the president of Worldwide Income Tax Multiservices while Baptiste was the president of Royal Tax Multiservices, both tax preparation services located in Miami.
Each of the following co-defendants previously pled guilty to one count of conspiring to defraud the government, in violation of Title 18, United States Code, Section 371, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1):
- Dukens Eleazard, a/k/a “DK,” 33, of Pembroke Pines, was sentenced on April 29, 2014 to 60 months in prison, to be followed by three years of supervised release, and was ordered to pay $6,679,036.78 in restitution.
- Henry Dorvil, a/k/a “D,” 35, of Hollywood, was sentenced on April 17, 2014 to 54 months in prison, to be followed by three years of supervised release, and was ordered to pay $2,537,417 in restitution.
- Corey Williams, 30, of Miami Gardens, was sentenced on May 21, 2014 to 40 months in prison, to be followed by three years of supervised release, and was ordered to pay $2,089,411 in restitution.
- Ronald Gustave, 36, of Miami, was sentenced on April 17, 2014 to 36 months in prison, to be followed by three years of supervised release, and was ordered to pay $544,054 in restitution.
- Luckner St Fleur, a/k/a “Nene,” 44, of Miami, was sentenced on May 9, 2014 to 30 months in prison, to be followed by three years of supervised release, and was ordered to pay $1,376,472 in restitution.
- Brandon Johnson, 29, of Miami Gardens, was sentenced on April 22, 2014 to 30 months in prison, to be followed by three years of supervised release, and was ordered to pay $74,050 in restitution.
- Marie Eleazard, a/k/a “Fanfan,” 32, of Miami, was sentenced on April 9, 2014 to 25 months in prison, to be followed by two years of supervised release, and was ordered to pay $1,880,317.94 in restitution.
- Jesse Lamar Harrell, 26, of Miramar, was sentenced on May 9, 2014 to 15 months in prison, to be followed by three years of supervised release, and was ordered to pay $589,675.93 in restitution.
- Ruth Cartwright, a/k/a “Princess,” 30, formerly of Plantation, is scheduled to be sentenced on September 26, 12014.
Co-defendant Marc Leroy Saint Juste, 47, of Tamarac, previously pled guilty to one count of conspiring to defraud the government, in violation of Title 18, United States Code, Section 371. He was sentenced to two months in prison, to be followed by one year of supervised release.
Co-defendant John Similien, 24, of Plantation, pled guilty on the third day of the eight day trial to making a false statement, in violation of Title 18, United States Code, Section 1001(a)(2), and was sentenced to time served.
The indictment was dismissed against Miguel Patterson, 35, of Miami.
Mr. Ferrer and Deputy Assistant Attorney General Cimino commended the investigative efforts of the IRS-CI, FBI, USSS, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI). The case is being prosecuted by Assistant U.S. Attorney Neil Karadbil and Tax Division Trial Attorney Greg Tortella.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Texas Drug Dealer Sentenced to 20 Years in Prison for Trafficking Heroin in MarylandRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Amir Ali Faraz, age 45, of Laredo, Texas, today to 20 years in prison, followed by 10 years of supervised release, for conspiracy to distribute heroin and marijuana, possession with intent to distribute heroin, using a phone in furtherance of drug trafficking and interstate travel to promote drug trafficking activities.Judge Titus also sentenced co-conspirator Ricardo Rodriguez, age 29, also of Laredo, Texas, to 78 months in prison, followed by five years of supervised release, for conspiracy to distribute heroin and marijuana, and for using a cell phone in furtherance of drug trafficking. Faraz and Rodriguez were convicted on January 24, 2014, after a 12-day jury trial.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Mark A. Magaw of the Prince George’s County Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Colonel W. Steven Flaherty, Superintendent of the Virginia State Police.
According to testimony at their trial, Faraz played a significant role in a drug conspiracy - from transporting heroin from Mexico into Texas and then on to Maryland, to soliciting purchasers and distributing heroin and marijuana. For example, beginning in late July, Faraz and a co-conspirator, Javier Escobar-Bucerra traveled from Texas to Maryland with heroin to sell. A marijuana customer of Faraz’ introduced them to Harold Bartrum. Bartrum was only interested in purchasing marijuana, but located a customer for the heroin. Faraz and Escobar-Bucerra sold nine ounces of heroin through Bartrum to this individual. Faraz and the co-conspirator also discussed with Bartrum returning to Maryland with marijuana. In September 2012, Faraz and Escobar-Bucerra traveled to Maryland from Texas with at least one kilogram of white powder heroin and between 9 ounces and 2.2 pounds of black tar heroin. Bartrum again assisted them in selling the heroin. According to trial testimony, Faraz traveled to Mexico before each trip to Maryland, and returned with between one and two kilograms of heroin.Witnesses testified that during October 2012, Faraz continued to talk to Bartrum by telephone, discussing arrangements to obtain marijuana, cocaine and heroin from Texas. Faraz wanted one of his heroin customers to provide the funds to obtain the marijuana in Mexico. Faraz’ conversations with Bartrum and the heroin customer included shipments of 100 to 200 pounds of marijuana, as well as heroin. Search and arrest warrants were executed before the transaction could take place.
According to trial testimony, Escobar-Bucerra also communicated with Bartrum during October and discussed bringing marijuana and heroin back to Maryland. In late October and November 2012, Ricardo Rodriguez was intercepted speaking to Bartrum about the next trip planned by Escobar-Bucerra. During these calls Rodriguez advised they were ready with all of the drugs, including marijuana and heroin. He also told Bartrum they had 500 pounds of marijuana if he wanted to purchase it. They discussed the quality and price of this additional marijuana and the need to have someone transport it. As a result of these calls, on November 6, 2012, surveillance located two pickup trucks traveling in tandem from Texas to Maryland. The vehicles were located outside Roanoke, Virginia. A traffic stop was conducted on both trucks. One of the trucks was occupied by Rodriguez and driven by his codefendant Jose Chapa. A subsequent search of the vehicle resulted in the seizure of seven packages which contained 6,190 grams of marijuana; a ziploc bag which contained 337.7 grams of heroin hydrochloride; plastic bags which contained 287.6 grams of heroin hydrochloride; and a knotted plastic bag which contained 99.1 grams of heroin hydrochloride. Escobar-Bucerra was identified as the driver of the second pickup truck.
Javier Escobar-Bucerra, age 29, of Laredo, Texas; Harold Bartrum, age 43, of Hyattsville, Maryland; and Jose Chapa, age 35, all pleaded guilty to their roles in the conspiracy. Escobar Bucerra and Bartrum were each sentenced to 64 months in prison; and Chapa was sentenced to 92 months in prison.
United States Attorney Rod J. Rosenstein praised the HSI Baltimore, Prince George’s County Police Department, Maryland State Police and Virginia State Police, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Leah J. Bressack, who prosecuted the case.
Ten Individuals Sentenced in Des Moines Methamphetamine ConspiracyRead the Press Release
DES MOINES, IA - On Wednesday, July 2, 2014, the last of ten defendants from the Des Moines, Iowa, area was sentenced on federal drug trafficking charges announced United States Attorney Nicholas A. Klinefeldt. Andres “Andy” Gomez, III, age 26, of Altoona, Iowa, was sentenced to 48 months imprisonment for conspiracy to distribute methamphetamine. District Judge John A. Jarvey also ordered Gomez to serve a term of four years supervised release following the period of imprisonment. The other nine defendants were previously sentenced for conspiracy to distribute methamphetamine following their guilty pleas. Juan Carlos Hernandez Gonzalez, age 33 of Des Moines, was sentenced to 300 months imprisonment and ordered to serve a term of 5 years supervised release following imprisonment. Miguel Bazan Cardenas, age 36 of Des Moines, was sentenced to 90 months imprisonment followed by 5 years supervised release. Bertoldo Zuniga, age 60 of Des Moines, was sentenced to 48 months imprisonment followed by 3 years supervised release. Azael Bernal Balderas, age 31 of Des Moines, was sentenced to 60 months imprisonment followed by 5 years supervised release. Ubaldo Carrasco Alcantar, age 46 of Des Moines, was sentenced to 30 months imprisonment followed by 3 years supervised release. Josue Castaneira Cruz, age 34 of Des Moines, was sentenced to 27 months imprisonment followed by 3 years supervised release. Gabriel Carrasco, age 32 of Des Moines, was sentenced to time served and was also ordered to serve 3 years supervised release with special conditions of 4 months in a residential facility followed by 4 months house arrest. Beverly Ann Hickcox, age 61 of Des Moines, was sentenced to 18 months imprisonment followed by 3 years supervised release. Danny Lee Iseminger, age 54 of Newton, was sentenced to 104 months imprisonment followed by 5 years supervised release. Each defendant was also ordered to pay a special assessment to the crime victim’s fund.
This organization was responsible for the distribution of highly pure methamphetamine in the Des Moines area from at least 2009 through 2012. The investigation culminated in the execution of multiple search and arrest warrants in December 2012. The organization received shipments of 30 pounds of methamphetamine at a time that originated from Mexico. Bulk cash shipments of drug proceeds were sent to Mexico by the organization, which was headed in the Des Moines area by Juan Carlos Hernandez Gonzalez. During the searches conducted in December 2012, agents seized 1.9 kilograms of 100% pure methamphetamine, $117,749 in drug proceeds and 17 firearms. Other properties, including a vehicle and residence, were also seized and forfeited as a result of the investigation.
The case was the result of the multiple-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF Program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. Agencies involved in this case included the Iowa Division of Narcotics Enforcement, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Des Moines, Iowa, Police Department, the Homeland Security Investigations, the Internal Revenue Service Criminal Investigations, the Iowa Division of Criminal Investigations, the Iowa Division of Intelligence, the Iowa National Guard Counter-Drug Unit, the Iowa State Fire Marshals, the Iowa State Patrol, the Mid-Iowa Narcotics Enforcement Task Force and Urbandale, Iowa, Police Department. This case was prosecuted in the United States Attorney’s Office for the Southern District of Iowa.
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Tallahassee Man Indicted for Scheme to Defraud Using Fraudulent State Court OrderRead the Press Release
TALLAHASSEE, FLORIDA– Pamela C. Marsh, United States Attorney for the Northern District of Florida, announced today that Frank William Johannissohn, 66, of Tallahassee, Florida, has been charged by a federal grand jury with mail fraud, possession of an authentication feature with intent to defraud the United States, making false statements to the United States Office of Personnel Management, and aggravated identity theft.
The indictment alleges that on or about July 26, 2013, Johannissohn mailed a fraudulent “Redress of Alimony” order bearing the forged signatures of a Wakulla County circuit court judge and a deputy clerk of the court to the United States Office of Personnel Management, as well as a certification stamp of the Wakulla County Clerk of the Court. According to the Indictment, Johannissohn mailed the fraudulent document in an attempt to obtain approximately $10,000 in additional retirement payments for every year of his retirement. Specifically, the fraudulent “Redress of Alimony” purportedly ordered the termination of Johannissohn’s obligation to provide health insurance for his former spouse, to pay for a survivor benefit under his federal retirement annuity for his former spouse, and to pay alimony to his former spouse.
If convicted on Count One of the Indictment charging mail fraud, Johannissohn faces a term of imprisonment of not more than 20 years, a period of supervised release of up to 3 years, a fine of up to $250,000, and a $100 special monetary assessment. If convicted on Counts Two (possession of an authentication feature with intent to defraud the United States) and Three (using a false writing and document) of the Indictment, Johannissohn faces on each of these counts a term of imprisonment of not more than 5 years, a period of supervised release of up to 3 years, a fine of up to $250,000, and a $100 special monetary assessment. If convicted on Count Four of the Indictment charging aggravated identity theft, Johannissohn faces a term of imprisonment of 2 years that must run consecutive to any term of imprisonment imposed for Counts One and Two, a period of supervised release of up to 1 year, a fine of up to $250,000, and a $100 special monetary assessment.
The Indictment results from an investigation by the United States Office of Personnel Management’s Office of Inspector General with the assistance of the Wakulla County Sheriff’s Office and the Leon County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Jason Beaton.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
Summertime Tips for Keeping Kids Safe from PredatorsRead the Press Release
GRAND RAPIDS, MICHIGAN –Children around the country are spending more time online and unsupervised. The U.S. Attorney’s Office for the Western District of Michigan, the FBI, and the Michigan State Police recommend that this is the ideal time to talk to kids about the dangers of online predators, sex trafficking, and other risks that arise for kids with additional free time and access to the internet during the summer months.
The U.S. Attorney office puts a high priority on aggressively prosecuting those who produce and distribute internet child pornography and exploit children sexually. Despite significant potential federal sentences – for example, five to 20 years in prison for receiving and distributing child pornography – pedophiles and child predators still use social media and the internet as their primary child pornography marketplace.
Child predators will find any way they can to contact kids, gain their trust, and exploit them. Summer poses a particular risk because children spend more time unsupervised. Now that smart phones put the internet directly into kids’ hands, it is much harder for parents to exert the kind of supervision they once had over the shared family computer or house landline telephone.
"The danger posed by online predators has the potential to pose real-life harm toward adolescent victims,” said Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “Those who attempt to exploit children online often use coercion, fear, and sometimes threats of violence to commit these crimes. As we enjoy the summer months, and our children spend more time outside of normal adult supervision, it is important for parents to remember that the children being victimized by online predators don’t live in some faraway place, outside of our everyday lives. Unfortunately, these are far too often our children—in our communities—and we must remain vigilant in our efforts to protect them from those who would do them harm."
Protecting Children from Online Predators:
Predators target children of every background. One in seven children reports receiving sexual solicitations online. Seventy percent of those are girls. Fifteen percent of teens ages 12-17 who own a cell phone say they have received sexually suggestive nude/semi-nude images of someone they know via text message. Four percent of teens ages 12-17 who own a cell phone admit to sending sexually suggestive nude/semi-nude images to others via text message. Parents should monitor children’s online activity closely, and although children feel that their online life is private, they need to know it is anything but and is more permanent than they think.
Some predators are in positions of trust and authority over kids, while others are strangers. Predators meet children on social media, chat rooms, and internet-based video games, among other places. All of these activities present opportunities for predators to gain children’s trust and groom them for eventual sexual conduct. Predators sometimes use a false identity, posing as other children or using a fake name to develop a friendship with a child. The predator may even establish social media accounts under that false identity to provide an additional sense of legitimacy. Predators often advance the relationship to text message or live video chat and encourage kids to send sexually explicit photos or videos. By that time, the child may have developed a certain level of trust in the offender that makes the child less likely to report the activity and more likely to keep the activity a secret at the request of the offender.
Here are a few internet safety tips to discuss with your children:
- Only “friend” and connect to people online that you know personally and delete those you do not know personally;
- Set social media security settings so that only confirmed friends and connections can see what you are posting;
- Never take a picture of yourself or write anything by text, email, or social media that you would not want everyone in the world to see;
- Immediately delete and never forward a picture of anyone doing something sexual;
- Choose screen names and usernames that are appropriate;
- Never post publicly or give anyone your phone number, email address, or home address unless you know them personally;
- Be aware that anyone you meet online may not be who they say they are; and
- Immediately tell a parent or trusted adult if you find yourself in an uncomfortable situation online, even if you are afraid that things have already gone too far.
Families may be in the best position to identify the warning signs of illicit computer use by adults and teens at home. Some warning signs include:
- an excessive amount of computer use, often when others are out of the house or sleeping;
- multiple computers, some of which are password protected or only used by one person in the home;
- peer-to-peer programs downloaded onto the desktop including Ares, Limewire, and others;
- cell phone security programs that hide a person’s photos from casual view by others;
- multiple email addresses, including one using false names;
- various USB thumb drives and external hard drives, especially if the person hides them or is reluctant to leave them unattended;
- lack of desire or motivation to seek employment or activities outside the house or away from the computer; and
- unfamiliar or inexplicable contacts stored on video chat programs such as Skype or Face Time.
It is important to note that not everyone involved in child pornography establishes in-person relationships with children, so families should not rule out possible child pornography trading just because a person does not interact with children in daily life. Anyone who suspects illicit computer use should report the activity to law enforcement for further investigation.
Protecting Children from Sex Trafficking:Not all predators rely on the internet. Even in West Michigan, sex trafficking and child exploitation exist.
Families, teachers, hotel workers, convenience store employees, and students are in the best position to identify potential child sex trafficking activity. While children of every background can be lured into prostitution, some warning signs of child sex trafficking include:
- lack of organized afterschool/summer activities and supervision;
- running away (not necessarily overnight);
- recent friendship/attention between a teenager and an older adult who may drive the teen places or provide a place to stay overnight;
- tension and fighting at home;
- new clothing, nails, and hair styles (for girls) generally outside the financial reach of a teen;
- new cell phone not purchased by parent/guardian;
- checking in at a hotel with no luggage or sneaking into a hotel through a side door;
- drug/alcohol dependency; and
- low self-esteem.
As part of the Innocence Lost Initiative – a collaboration among the National Center for Missing and Exploited Children, the FBI, and the Department of Justice – 3,100 child victims of sex trafficking were recovered nationwide from 2003 to 2013. The youngest was nine years old. In a 2013 national sting on child sex trafficking, Detroit ranked second-highest out of 76 cities in the number of child victims recovered.
Project Safe Childhood:
To address the growing concerns about child sexual exploitation in the digital age, the Department of Justice launched Project Safe Childhood in 2006. Project Safe Childhood expanded in 2011 to include sex trafficking of minors, crimes against children committed in Indian country, and failure to register as a sex offender.
The national initiative relies on partnerships with organizations including U.S. Attorneys’ Offices; federal investigative agencies; and state, local, tribal, and military law enforcement officials. Approximately 70 Internet Crimes Against Children (ICAC) Task Forces operate around the country for federal, state, and local law enforcement officers to collaborate in investigating online child exploitation.Under Project Safe Childhood, the U.S. Attorney’s Office for the Western District of Michigan prosecutes people who create, download, share, possess, and view child pornography. Federal sentences for these crimes are steep: up to 20 years for viewing and possessing child pornography, a mandatory minimum of 5 years and up to 20 years for downloading and sharing child pornography, and a mandatory minimum of 15 years and up to 30 years for producing child pornography. The penalties increase for each of those charges if the defendant has a prior sex offense conviction.
The U.S. Attorney’s Office for the Western District of Michigan also prosecutes those who seek to exploit children sexually by chatting online or arranging to meet children for sexual encounters. Federal sentences for those crimes are significant: 10 years to life for coercing or enticing a child for sex, 10 years to life for causing a child to travel out of state for sex, and up to 30 years for traveling to another state to have sex with a child. Defendants who traffic minors for prostitution face a mandatory minimum of 10 years and up to life in prison.
In 2013 and 2014, the U.S. Attorneys’ Office for the Western District of Michigan successfully prosecuted the following cases, among others under Project Safe Childhood:
- sex trafficking of three girls ages 14-16 in Grand Rapids;
- online enticement of a 12-year-old by a man in California;
- producing sexually explicit photos of a teenage boy (resulting in forfeiture of the defendant’s house);
- sexually abusing a 12-year-old girl on Indian territory;
- distribution and possession of over 44,000 files of child pornography by a formerly licensed counselor;
- streaming live video over the internet of children being sexually abused;
- downloading and possessing child pornography;
- receiving child pornography;
- cyber-stalking of students at Michigan State University and committing child pornography offenses; and
- viewing child pornography online.
The FBI has recently formed the West Michigan Based Child Exploitation Task Force (WEBCHEX), a collaborative effort between the FBI and state and local law enforcement partners to combat the sexual exploitation of children across West Michigan. This task force will primarily focus on investigations of child abductions, child sex trafficking, interstate travelers for sex with minors, and producers and distributors of child pornography. The participating agencies include the Michigan State Police, Grand Rapids Police Department, Ionia County Sheriff’s Office, Allegan County Sheriff’s Office, and Ottawa County Sheriff’s Office. The task force also has the support of the United States Attorney’s Office and will coordinate prosecutions between federal and state prosecutors.
How to Report Child Exploitation:
If you suspect illegal activity involving child exploitation, contact law enforcement immediately. If a child is in imminent danger, call 911. Other resources for reporting these crimes include:
- West Michigan Based Child Exploitation Task Force (WEBCHEX) at 616-456-5489;
- Homeland Security Investigations, Grand Rapids, at 616-235-3936 (x. 2215); and
- CyberTipline (National Center for Missing and Exploited Children).
To report a child missing and gain immediate assistance in launching a campaign to locate the child, or if you think you have seen a missing child, call:
- 1-800-THE-LOST (1-800-843-5678).
END
Southern California Man Sentenced to 121 Months in Prison for Medicare Fraud and Identity TheftRead the Press Release
A Southern California man who was convicted at trial of conspiracy to commit health care fraud, six counts of health care fraud and six counts of aggravated identity theft was sentenced to serve 121 months in prison today in federal court in Los Angeles.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney André Birotte Jr. of the Central District of California, Special Agent in Charge Glenn R. Ferry of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Los Angeles Region and Assistant Director in Charge Bill Lewis of the FBI’s Los Angeles Field Office made the announcement.
Vahe Tahmasian, 36, of Glendale, California, was found guilty by a federal jury on March 21, 2014, for his role in a $1.5 million Medicare fraud and identity theft scheme. In addition to his prison term of 121 months, he was sentenced to serve three years of supervised release and ordered to pay $994,036 in restitution to the Medicare program.
The evidence at trial showed that between April 2009 and February 2011, Tahmasian operated a Medicare fraud scheme at Orthomed Appliance Inc. (Orthomed), a DME supply company in West Hollywood, California. Tahmasian and his co-conspirator, Eric Mkhitarian, purchased Orthomed from the previous owners and put the company in the name of a “straw” owner. The defendant and his co-conspirator then stole the personal identifying information of Medicare beneficiaries and doctors in the company’s patient files, and used that information to submit a large volume of fraudulent claims to Medicare. The evidence showed that during a three-month period in late 2010, Tahmasian submitted more than $1.2 million in fraudulent claims to Medicare for services that were never prescribed by a physician and never provided to the Medicare beneficiaries. Tahmasian and his co-conspirator then took out more than $622,000 in cash from the company over a six-week period in early 2011. The evidence also showed that Tahmasian used a fake California driver’s license to further the fraud scheme. Tahmasian submitted a total of $1,584,640 in claims to Medicare and received approximately $994,036 on those claims.
The case was investigated by the FBI and the Los Angeles Region of HHS-OIG. The case was prosecuted by Assistant Chief Benton Curtis and Trial Attorney Alexander Porter of the Criminal Division’s Fraud Section.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .Sacramento Man Sentenced to Prison for Drug ConspiracyRead the Press Release
Anchorage, Alaska-United States Attorney Karen L. Loeffler announced today, July 7, 2014, that John Joseph Brennan III, of Sacramento, California was sentenced in federal court in Anchorage for his role in a drug conspiracy to distribute and to possess with the intent to distribute oxycodone.
Brennan, 61, was sentenced to 68 months imprisonment and 3 years of supervised release by United States Chief District Judge Ralph R. Beistline, for his role in the drug conspiracy involving the distribution of oxycodone in Fairbanks and Juneau, Alaska between the dates of September 2008 to September 2010.
According to information presented to the court by Assistant United States Attorney Jack S. Schmidt, the defendant was a member of a large scale drug conspiracy where oxycodone was delivered to Fairbanks and Juneau, Alaska supplied by the defendant and others who were located in Sacramento, California through commercial package delivery services and drug couriers flying on commercial flights. Oxycodone was delivered to other members of the conspiracy in Fairbanks and Juneau for subsequent distribution and the other members of the conspiracy funneled drug proceeds back to other co-conspirators located in Sacramento, California via bank deposits, wire remittance services, or drug couriers. These drug proceeds were used to purchase additional oxycodone from Brennan, who acted as a source of supply for the conspiracy by obtaining oxycodone from physicians located in Sacramento, California and distributing the pills to other co-defendants, specifically Dante Whitley, Wilbert Barber, Deandre Dantzler, Michael Miller and Milan Thomas who distributed the pills in Alaska. Members of the conspiracy laundered the drug proceeds using bank transactions and wire transfers in order to conceal the nature of the drug proceeds, and structure deposited the drug proceeds in a manner to avoid federal reporting requirements.
Prior to imposing sentence, Judge Beistline indicated the extreme seriousness of the offense prior to imposing the defendant sentence and stated that “members of the community were sick and tired of what drugs do to their community,” and that deterrence of the defendant and others were important aspects in fashioning an appropriate sentence. Judge Beistline further stated Brennan had made a significant turnaround in his life after his contact with law enforcement by immediately seeking and successfully completing drug treatment and becoming a drug counselor to others while out on release awaiting sentencing, as reasons for the sentence he imposed.
Ms. Loeffler commended the Drug Enforcement Agency (DEA), Port of Seattle Police Department, and the Juneau Police Department-Drug Metro Unit for the investigation leading to the successful prosecution of the above listed defendants.Russian Hacker Arrested for Computer Hacking Scheme that Victimized Thousands of Credit Card CustomersRead the Press Release
A Russian man, indicted in the Western District of Washington for hacking into point of sale systems at retailers throughout the United States was arrested this weekend and transported to Guam for an initial appearance, announced U.S. Attorney Jenny A. Durkan. ROMAN VALEREVICH SELEZNEV, 30, of Vladivostok, also known as “Track2” in the criminal carding underground, was indicted in March 2011, for operating several carding forums that engaged in the distribution of stolen credit card information. At his first appearance in Guam today, SELEZNEV was ordered detained pending a further hearing scheduled for July 22, 2014.
“Cyber crooks should take heed: you cannot hide behind distant keyboards. We will bring you to face justice,” said U.S. Attorney Jenny A. Durkan, who leads the Justice Department’s Cybercrime and Intellectual Property Enforcement Subcommittee of the Attorney General’s Advisory Committee. “I want to thank the U.S. Secret Service for their work in investigating this case and in apprehending the defendant. I also want to give credit to the work of the Electronic Crimes Task Force, and Seattle Police Department in particular, and our partners in the United States Attorney’s Office in Guam, the Department of Justice’s Office of International Affairs, and the Computer Crime and Intellectual Property section of the Department of Justice’s Criminal Division.”
The indictment, unsealed today following his arrest on July 5, 2014, details 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 illegal hacking outlined in the indictment occurred between October 2009, and February 2011. The indictment alleges that SELEZNEV created and operated infrastructure to facilitate the theft and sales of credit card data and used servers located all over the world to facilitate the operation. This infrastructure included servers that hosted carding forum websites where cybercriminals gathered to sell stolen credit card numbers. The charges in the indictment include five counts of bank fraud, eight counts of intentionally causing damage to a protected computer, eight counts of obtaining information from a protected computer, one count of possession of fifteen or more unauthorized access devices (stolen credit card numbers), two counts of trafficking in unauthorized access devices and five counts of aggravated identity theft.
“The arrest of Roman Seleznev is yet another example of how the Secret Service continues to successfully combat data theft and financial crimes,” said Robert Kierstead, Special Agent in Charge of the U.S. Secret Service Seattle Field Office. “The Secret Service utilized state-of-the-art investigative techniques to dismantle this criminal network. Our success in this case and other similar investigations is a result of the extraordinary work of our investigators and our close work with our network of law enforcement partners.”
Bank Fraud is punishable by up to thirty years in prison and a $2 million fine. Intentionally causing damage to a protected computer resulting with a loss of more than $5,000 is punishable by up to ten years in prison and a $250,000 fine. Obtaining information from a protected computer is punishable by up to five years in prison and a $250,000 fine. Possession of more than 15 unauthorized access devices is punishable by up to ten years in prison and a $250,000 fine. Trafficking in unauthorized access devices is punishable by up to 10 years in prison and a $250,000 fine. Aggravated identity theft is punishable by an additional two years in prison on top of any sentence for the underlying crimes. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
SELEZNEV is also charged in a separate indictment in the District of Nevada with participating in a racketeer influenced corrupt organization (RICO) and conspiracy to engage in a racketeer influenced corrupt organization as well as two counts of possession of fifteen or more counterfeit and unauthorized access devices. Those charges carry maximum penalties of up to 20 years in prison for RICO and RICO conspiracy and up to 10 years in prison for possession of fifteen or more counterfeit and unauthorized access devices.
Credit card fraud costs financial institutions $40 billion annually. In the Western District of Washington more than 180,000 stolen credit card numbers have been identified in recent cyber cases.
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.
The case is being investigated by the U.S. Secret Service Electronic Crimes Task Force which includes detectives from the Seattle Police Department. The Office of International Affairs, the Computer Crime and Intellectual Property Section of the Department of Justice’s Criminal Division and the U.S. Attorney’s Office for the District of Guam provided substantial assistance. Assistant United States Attorney Norman M. Barbosa is prosecuting the case in the Western District of Washington.
For additional information please contact Todd Greenberg, Assistant United States Attorney for the United States Attorney’s Office, at (206) 553-7970.
Owner of N.J. Accounting Business Charged with Nearly $1 Million Fraud on Her Clients and the U.S. GovernmentRead the Press Release
CAMDEN, N.J. – An accountant from Toms River, N.J., was arrested today by special agents of IRS – Criminal Investigation and the Social Security Administration, Office of the Inspector General (SSA OIG), on charges she allegedly stole $905,000 from client tax refunds and social security benefits, U.S. Attorney Paul J. Fishman announced.
Doreen Gentile, 59, was indicted by a grand jury, charged with 14 counts of mail fraud, nine counts of forging endorsements on treasury checks of the United States, two counts of aggravated identity theft and two counts of filing false income tax returns. Gentile is scheduled to make her initial appearance this afternoon before Magistrate Judge Ann Marie Donio in Camden federal court.
According to the indictment unsealed today: Gentile, owned and operated Doreen A. Gentile & Associates, LLC (“DAG & Associates”), an accounting practice based in Toms River. Gentile maintained clients throughout central and southern New Jersey. In addition to preparing federal and state income tax returns, she also managed property for clients in Salem County.
As part of her scheme, Gentile would show her clients a tax return that indicated that they had no tax or refund due, owed a minimal amount of tax (generally under $40) or were due a refund that was far less then what they were entitled. Gentile then prepared a second set of tax returns, signed without her clients’ permission, that she submitted to the IRS for the full tax refund. Based on the second set of returns, the IRS or the New Jersey issued tax refund checks care of DAG & Associates and mailed them to the DAG & Associates post office box in Toms River. Gentile then deposited the tax refund checks into the DAG & Associates bank account without her clients’ permission.
Gentile also directed clients to make payments to the IRS to pay for various tax liabilities. After the payments were made, Gentile, without the victims’ knowledge, applied for refunds and had the checks mailed to her. Once she received the refund checks she forged the victims’ signatures and deposited the refunds into her account.
In addition, when one of her clients died in September 2005, Gentile did not inform the SSA. Instead, Gentile allowed the SSA to continue sending retirement benefits, which she accessed through the deceased victim’s bank account and used for her personal expenses at clothing and jewelry stores.
On her personal individual tax return, Gentile failed to report the income generated by her theft of her clients’ refund checks and the money she embezzled from the deceased victim’s estate.
The 14 counts of mail fraud alleged in the indictment each carry a maximum potential penalty of 20 years in prison and a $250,000 fine. The nine counts of forging endorsements on treasury checks of the United States and one count of theft of government funds each carry a maximum potential penalty of 10 years in prison and a $250,000 fine. The two counts of filing false income tax returns each carry a maximum potential penalty of three years in prison and a $100,000 fine. The two counts of aggravated identity theft each carry a maximum potential consecutive sentence of two years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, and special agents of SSA OIG under the direction of Special Agent in Charge Edward J. Ryan, with the investigation.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney=s Office Criminal Division in Camden.
The charge and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.14-239
Defense counsel: Robert Weir Esq., Red Bank, N.J.
Gentile, Doreen Indictment
Overland Park Hotel Owners Plead Guilty to Employing Undocumented WorkersRead the Press Release
KANSAS CITY, KAN. - Theowners of an Overland Park hotel pleaded guilty Monday to a federal charge of employing undocumented workers, who they paid less than other employees, U.S. Attorney Barry Grissom said.
Munir Ahmad Chaudary, 53, and his wife, Rhonda R. Bridge, 41, both of Overland Park, Kan., pleaded guilty to one count of conspiracy to harbor undocumented aliens for personal gain. In their pleas, they admitted employing undocumented workers at two hotels they owned: A Clarion Hotel at 7000 W. 108th in Overland Park, and a Clarion Hotel at 11828 NW Plaza Circle in Kansas City, Mo. Chaudary and Bridge lowered their hotels’ operating costs and put themselves at a competitive advantage by not paying Social Security, Workers Compensation and unemployment insurance for the undocumented workers.
“Unscrupulous employers are the driving force behind illegal immigration,” U.S. Attorney Barry Grissom. “This case should send a message that they are not above the law.”
According to court records, the investigation began in December 2011 when the U.S. Department of Homeland Security (DHS) and the Kansas Department of Revenue (KDOR) received information that the owners of the hotels were employing foreign nationals who not lawfully present in the United States. In June 2012, an undercover agent posing as an undocumented worker got a job at the Overland Park Hotel. He was hired even though he told his employers he was not authorized to work in the United States.
In 2011 and 2012 the defendants filed false and fraudulent Quarterly Wage Reports and Unemployment Tax Returns with the Kansas Department of Labor in which they under-reported the number of employees at the Overland Park hotel, the amount of total wages paid and the amount of unemployment taxes due.
Sentencing will be set for a later date. The defendants face a maximum penalty of five years in federal prison without parole and a fine up to $250,000. In addition, the government is seeking the forfeiture of any funds or property derived from the defendants’ illegal activities.
Grissom commended Homeland Security Investigations (HSI), the Kansas Department of Revenue (KDOR), the Overland Park Police Department, the U.S. Department of Labor and Assistant U.S. Attorney Brent Anderson for their work on the case.
Oklahoma City Doctor Pays $40,000 to Settle Civil Penalty Claims Involving Violations of Controlled Substances ActRead the Press Release
Oklahoma City, Oklahoma -- STANLEY K. ROGERS, D.O., who practices in Oklahoma City, Oklahoma, has agreed to pay $40,000 to the United States to settle civil penalty claims stemming from allegations that he violated the Controlled Substances Act, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
The Controlled Substances Act, 21 U.S.C. Sections 801 et seq. ("CSA"), was passed by Congress to combat the illegal distribution and abuse of controlled substances, including prescription medications. The CSA is enforced by the Drug Enforcement Administration's (DEA) Office of Diversion Control, with a mission to prevent, detect, and investigate the diversion of controlled pharmaceuticals and listed chemicals from legitimate sources while ensuring an adequate and uninterrupted supply for legitimate medical, commercial, and scientific needs. Under the CSA, medical providers registered with the DEA who purchase, distribute, dispense, transfer, or sell controlled substances must comply with inventory and documentation requirements. Regulations promulgated under the CSA require that each DEA registrant, maintain complete and accurate records of each substance manufactured, received, sold, delivered, dispensed or otherwise disposed of by the registrant. These requirements play a vital role in ensuring the appropriate handling, accounting, and distribution of controlled substances. Violations of the record-keeping requirements subject DEA registrants to civil monetary penalties.
The United States alleged that between January 1, 2012, and February 4, 2014, at least one employee in Dr. Rogers’ office used his DEA registration number in order to obtain over 20,000 dosage units of Schedules III and IV controlled substances which were not for legitimate medical purposes. It was alleged that Dr. Rogers failed to provide effective controls and procedures against theft and diversion, failed to maintain and review records of the dates, quantities received, dispensation, or inventories of controlled substances purchased using his DEA registration number.
In order to resolve the civil penalty claims against by the United States, Dr. Rogers agreed to pay $40,000 to the government In reaching this settlement, Dr. Rogers did not admit liability and the government did not make any concession regarding the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the Drug Enforcement Administration’s Oklahoma City District Office Diversion Group and was prosecuted by Assistant United States Attorney Ronald R. Gallegos.
New York State Man Sentenced to Prison and Must Forfeit $275,000 for Money Laundering ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 29-year-old Vestal, New York, resident was sentenced to serve 20 months in prison and to forfeit $275,000 today by Senior U.S. District Court Judge A. Richard Caputo for his role in a money laundering conspiracy involving proceeds from the unlawful sale of synthetic marijuana.
According to United States Attorney Peter Smith, the defendant, Jaswinder Singh, previously admitted to conspiring with others to commit money laundering related to synthetic marijuana distribution in northeastern Pennsylvania and New York State.
Singh was charged in January 2014, as a result of an investigation by the Drug Enforcement Administration, Internal Revenue Service criminal investigators, and the Pennsylvania State Police. He pleaded guilty on January 30, 2014.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
****New York City Man Sentenced to More Than 8 Years for Drug ConspiracyRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that
Kenneth Robinson, a/k/a “Kill”, 46, of New York, New York, was sentenced today to 100 months in prison and three years of supervised release for conspiracy to possess with intent to distribute and to distribute oxycodone and cocaine. He pled guilty to the charge in March 2013.His conviction stems from his involvement in a large drug trafficking conspiracy operated by Maurice McCray in Central Maine. Court records reveal that between May 2009 and May 2012, Robinson supplied oxycodone to McCray for distribution by a network of conspirators. The conspiracy was dismantled following a three month investigation that revealed the details of McCray’s drug distribution operation and its membership.
The investigation was conducted by the U.S. Drug Enforcement Administration and the
Maine Drug Enforcement Agency.Modesto Man Sentenced to Federal Prison for Conspiring to Commit Postal CrimesRead the Press Release
FRESNO, Calif. —Michael Chase Stafford, 29, of Modesto, was sentenced today by U.S. District Judge Lawrence J. O’Neill to two years and nine months in prison for conspiring to commit postal crimes, according to United States Attorney Benjamin Wagner.
According to court documents, Stafford conspired with others to steal mail from authorized U.S. mail receptacles and to possess stolen U.S. mail. From the stolen mail, they acquired credit cards, merchant cards and convenience checks, in addition to account numbers and personal identifiers of victims. They used these items to buy merchandise for themselves without authorization from the true account holders.
Co-defendant Dawn Renee Wessling was sentenced to 18 months in prison on January 22, 2013, for her role in the conspiracy.
This case is the product of an investigation by the United States Postal Inspection Service. Assistant United States Attorney Grant B. Rabenn is prosecuting the case.
Miami Jury Convicts Four Defendants of Conspiracy and Bank Fraud Offenses Arising from $49.6 Million Mortgage Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Jason T. Moran, Special Agent in Charge, Federal Deposit Insurance Corporation (FDIC), Office of Inspector General, Atlanta Regional Office, announce the convictions of Domenico “Dom” Rabuffo, 77 of Miami, Mae Rabuffo, 75, of Fort Lauderdale, and Williston Park, New York, Raymond E. Olivier, 52, of Land O’ Lakes, and Curtis Allen Davis, 51, of Tampa. The defendants were convicted after an eleven day-jury trial before Chief United States District Judge Kevin Michael Moore. The jury found each defendant guilty of conspiracy to commit bank fraud and wire fraud affecting a financial institution, in violation of Title 18, United States Code, Section 1349. The jury also convicted Domenico Rabuffo, Olivier, and Davis of multiple counts of bank fraud, in violation of Title 18, United States Code, Section 1344.
Domenico Rabuffo, Mae Rabuffo, Olivier, and Davis are scheduled to be sentenced by Chief Judge Moore on September 25, 2014. The defendants face a maximum sentence of 30 years in prison for each count of conviction.
According to the indictment and evidence at trial, from 2003 to 2008, the defendants conspired to perpetrate a complex $49.6 million mortgage fraud scheme against various FDIC-insured lenders, including Bank of America, Regions Bank, SunTrust Bank, and Wachovia Bank. Domenico Rabuffo and Mae Rabuffo used shell companies to acquire ownership and control of a purported residential property development known as Hampton Springs, located in Cashiers, North Carolina. Then, Domenico Rabuffo, Olivier, and Davis recruited numerous straw borrowers to purchase building lots in the development. Several of the straw borrowers testified at the trial. According to their testimony and other evidence, Domenico Rabuffo paid the borrowers to obtain lot purchase loans and construction loans for building lots in Hampton Springs. To obtain the loans, Domenico Rabuffo, Mae Rabuffo, Olivier, Davis, and other conspirators, submitted fraudulent loan applications and related documents to the lenders and the lenders’ closing agents.
Among other things, the loan applications and settlement statements for the lot loans contained fraudulent statements that the borrowers paid earnest money deposits and cash due at the closing. In fact, the deposits and cash-to-close were paid by Domenico Rabuffo and Mae Rabuffo using proceeds from the fraudulent scheme. Further, Domenico Rabuffo and Mae Rabuffo sent fraudulent correspondence to the closing agents, including letters bearing the forged signatures of borrowers, to create the false impression that the deposits and cash due at closing had been supplied by the borrowers from their own funds.
Olivier and Davis recruited straw borrowers for the fraud scheme and submitted fraudulent loan applications to the lenders. Further, Olivier and Davis caused their private companies to be disclosed as the employers of straw borrowers whose actual employment was inconsistent with the inflated income stated on their loan applications. Then, when they were contacted by the lenders, Olivier and Davis provided fraudulent verifications of employment for those borrowers.
Three other defendants, Diane M. Hayduk, 64, of Miami, Victor Miguel Vidal, 49, of Miami, and Lazaro Jesus Perez, 44, of Miami Springs, pled guilty to the charged conspiracy. Hayduk assisted Domenico Rabuffo and Mae Rabuffo with the misappropriation of loan proceeds and the transmission of fraudulent correspondence to the lenders and the closing agents. Vidal served as a loan officer at SunTrust Mortgage, where he sponsored fraudulent loan applications for lots in Hampton Springs, including fraudulent applications for $33 million in construction loans. Perez furnished fictitious accountant’s letters to Vidal, in support of fraudulent loan applications submitted to SunTrust Mortgage. Hayduk, Vidal, and Perez are awaiting sentencing by Chief Judge Moore.
Mr. Ferrer commends the investigative efforts of the FBI and FDIC, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorneys Dwayne E. Williams and Jerrob Duffy.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Local Tax Return Preparer ConvictedRead the Press Release
HOUSTON - Diane Caldwell Larry has entered a plea of guilty for falsifying client tax returns, announced United States Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of Internal Revenue Service-Criminal Investigation (IRS-CI).
During her plea hearing today, Larry admitted that while operating a tax return preparation service under the name Paradise South Tax Services, she prepared 33 materially false client tax returns for tax years 2007 through 2010. Those returns generated excessive refunds and caused aggregate losses to the IRS totaling approximately $168,792. Larry acknowledged she had included in these client tax returns fraudulent “side business” losses and false and excessive itemized deductions and credits in order to generate excessive refunds. When some of these tax returns were audited, Larry made up false documents to create an illusion of legitimacy for some of the false and excessive itemized deductions and credits.
Specifically, Larry admitted she knowingly and willfully included a false $84,215 business loss deduction for a non-existent “side business” as well as false deductions for uniforms upkeep, toll bridge fees, job-related tools and employee business expenses totaling $10,644 in a client’s 2009 tax return. This tax return alone caused a loss to the U.S. Treasury of approximately $18,382.
The plea agreement requires Larry to make full restitution to the IRS for all of the fraudulent refunds.
U.S. District Judge Vanessa Gilmore, who accepted the guilty plea today, has set a sentencing date of Oct. 20, 2014, at which time Larry faces up to three years in prison and $250,000 fine. Larry has been permitted to remain on bond pending that hearing.
The case, investigated by IRS-CI, is being prosecuted by Assistant United States Attorney Jimmy Sledge Jr.
Junction City Man Sentenced on Child Porn ChargeRead the Press Release
TOPEKA, KAN. A Junction City man was sentenced Monday to 63 months in prison on a federal child pornography charge, U.S. Attorney Barry Grissom said.
Scott Deppish, 43, Junction City, Kan., pleaded guilty to one count of accessing child pornography with intent to view. In his plea, he admitted that that on Feb. 12, 2013, investigators served a search warrant and seized his desktop computer and two lose hard drives. They found images depicting prepubescent children engaged in sexual conduct. They also found images of a known victim in what is referred to as the “Abby” series, which were taken in the state of Idaho. They depict a very young prepubescent female engaged in sexual conduct with an adult male.
Grissom commended the Junction City Police Department, Homeland Security Investigation and Assistant U.S. Attorney Christine Kenney for their work on the case.
Illegal Alien Convicted of Using Deceased Boy’s IdentityRead the Press Release
HOUSTON – Jesus Duenas-Barajas, 53, a Mexican National illegally residing in Houston, has entered a plea of guilty to submitting a false statement on a U.S. passport application and aggravated identity theft, announced United States Attorney Kenneth Magidson.
On or about Feb. 10, 2012, Duenas-Barajas completed a DS-11 U.S. Passport application at the Westfield Post Office in Houston, using the identity of a boy who had died in 1978. On that application, he represented he was that person and provided the deceased victim’s date of birth, Social Security number and birth certificate.
Evidence indicates Duenas-Barajas had been using the deceased boy’s identity since as early as 1986. During that time, he had also been able to obtain a driver’s license using the deceased boy’s identifiers.
U.S. District Judge Vanessa Gilmore, who accepted the plea, has set sentencing for Oct. 14, 2014. At that time, he faces up to 10 years in federal prison and a possible $250,000 fine for the false statement conviction. For aggravated identity theft, he will also face a mandatory two-year-term of federal imprisonment which must be served consecutively to any other sentence imposed. He is expected to face deportation proceedings after he serves his sentence.
The investigation was conducted by the Department of State and Social Security Administration. Assistant U.S. Attorney Julie Searle is prosecuting.
Huntington Woman Sentenced for Role in Heroin ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman was sentenced today to 12 months and 1 day in federal prison for her role in a heroin distribution conspiracy, announced U.S. Attorney Booth Goodwin. Alanna Lynn Mattison, 32, previously pleaded guilty in January 2014 to making an apartment available for use for storing and distributing heroin and oxycodone before Chief United States District Judge Robert C. Chambers in Huntington.
Between February 2013 and August 15, 2013, Mattison rented an apartment located at 522 14th Street West, in Huntington, and permitted Bobby Nelson Gulley to utilize her apartment to store and distribute heroin and oxycodone. As part of her plea agreement, Mattison admitted her involvement in a conspiracy with Gulley and Helen Louise Adkins which resulted in the transportation of heroin and oxycodone from Detroit, Michigan, to Huntington for distribution. Mattison also admitted to distributing heroin on behalf of Gulley during the conspiracy.
In August 2013, agents executed search warrants at multiple locations tied to Gulley and Mattison, recovering over 140 grams of heroin, 974 oxycodone tablets and $12,000 cash. Gulley previously pleaded guilty in connection with his involvement in the conspiracy and was sentenced in May 2014 to 63 months in federal prison.
The Drug Enforcement Administration and Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Huntington Woman Sentenced for Role in Heroin ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman was sentenced today to 12 months and 1 day in federal prison for her role in a heroin distribution conspiracy, announced U.S. Attorney Booth Goodwin. Alanna Lynn Mattison, 32, previously pleaded guilty in January 2014 to making an apartment available for use for storing and distributing heroin and oxycodone before Chief United States District Judge Robert C. Chambers in Huntington.
Between February 2013 and August 15, 2013, Mattison rented an apartment located at 522 14th Street West, in Huntington, and permitted Bobby Nelson Gulley to utilize her apartment to store and distribute heroin and oxycodone. As part of her plea agreement, Mattison admitted her involvement in a conspiracy with Gulley and Helen Louise Adkins which resulted in the transportation of heroin and oxycodone from Detroit, Michigan, to Huntington for distribution. Mattison also admitted to distributing heroin on behalf of Gulley during the conspiracy.
In August 2013, agents executed search warrants at multiple locations tied to Gulley and Mattison, recovering over 140 grams of heroin, 974 oxycodone tablets and $12,000 cash. Gulley previously pleaded guilty in connection with his involvement in the conspiracy and was sentenced in May 2014 to 63 months in federal prison.
The Drug Enforcement Administration and Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Huntington Man Who Shot Six Gets 12 Years in Federal PrisonRead the Press Release
HUNTINGTON, W.Va. – A Huntington man was sentenced today to 12 years in federal prison for being a felon in possession of firearms and distributing heroin, United States Attorney Booth Goodwin announced today. Antonio Smith, 32, will also serve three years’ supervised release after his prison term, under a sentence imposed by Chief United States District Judge Robert C. Chambers. Smith previously pleaded guilty to the two charges on March 31, 2014.
On September 24, 2013, Smith used two firearms to shoot six individuals in the Northcott neighborhood of Huntington. Smith had previously been convicted of two violent felonies and thus could not legally possess the firearms that he used in the shootings. Separately, Smith sold heroin in Huntington to a confidential informant who, unbeknownst to Smith, was cooperating with investigators. Smith was later arrested in New York and returned to West Virginia for prosecution.
The case was investigated by the Federal Bureau of Investigation’s Huntington Violent Crime/Drug Task Force, the Drug Enforcement Agency and the Huntington Police Department. Special Assistant United States Attorney Sharon M. Frazier handled the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiates, including heroin, in communities across the Southern District.
Huntington Man Who Shot Six Gets 12 Years in Federal PrisonRead the Press Release
HUNTINGTON, W.Va. – A Huntington man was sentenced today to 12 years in federal prison for being a felon in possession of firearms and distributing heroin, United States Attorney Booth Goodwin announced today. Antonio Smith, 32, will also serve three years’ supervised release after his prison term, under a sentence imposed by Chief United States District Judge Robert C. Chambers. Smith previously pleaded guilty to the two charges on March 31, 2014.
On September 24, 2013, Smith used two firearms to shoot six individuals in the Northcott neighborhood of Huntington. Smith had previously been convicted of two violent felonies and thus could not legally possess the firearms that he used in the shootings. Separately, Smith sold heroin in Huntington to a confidential informant who, unbeknownst to Smith, was cooperating with investigators. Smith was later arrested in New York and returned to West Virginia for prosecution.
The case was investigated by the Federal Bureau of Investigation’s Huntington Violent Crime/Drug Task Force, the Drug Enforcement Agency and the Huntington Police Department. Special Assistant United States Attorney Sharon M. Frazier handled the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiates, including heroin, in communities across the Southern District.
Garden City Man Sentenced to 13 Years on Federal Gun ChargeRead the Press Release
GARDEN CITY, KAN. A Garden City man was sentenced Monday to 13 years in federal prison on a federal firearms charge, U.S. Attorney Barry Grissom said.
Anthony J. Reyna, 24, Garden City, Kan., pleaded guilty to one count of unlawful possession of a firearm following a felony conviction. In his plea, he admitted that on Nov. 13, 2012, he sold a handgun to an agent of the Bureau of Alcohol, Tobacco, Firearms and Explosives who was working undercover. The two met near a Home Depot store in Garden City. Because Reyna had a prior felony conviction he was prohibited by federal law from possessing a firearm.
Grissom commended the Garden City Police Department, the ATF and Assistant U.S. Attorney Lanny Welch for their work on the case.
Former State Secretary of Transportation Charged with Filing False Tax ReturnsRead the Press Release
BOSTON – The former Massachusetts Secretary of Transportation was charged today with filing false tax returns.
James J. Kerasiotes, 60, of Wrentham, was charged in an information with filing false personal income tax returns for the years 2010 and 2011.
The information alleges that Kerasiotes was a self-employed consultant providing strategy and business origination services to clients in the transportation and construction industries. For the calendar years 2010 and 2011, Kerasiotes filed Forms 1040, U.S. Individual Income Tax Returns, with the IRS reflecting only a portion of the income he earned from his consulting business during those years. By underreporting his total business income for 2010 and 2011, Kerasiotes evaded the payment of income taxes to the IRS.
The charging statute provides a sentence of no greater than three years in prison, one year of supervised release, and a fine of $100,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the Federal Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Cheryl Garcia, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations, New York Regional Office, made the announcement today. The case is being prosecuted by Kristina E. Barclay of Ortiz’s Public Corruption Unit.
The details contained in the information are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former N.J. Lawyer Admits $40.8 Million Mortgage Fraud SchemeRead the Press Release
CAMDEN, N.J. – A former N.J. lawyer today admitted he conspired to participate in a scheme that caused lenders to release $40.8 million based on fraudulent mortgage loan applications and conspired to launder the proceeds of the fraud, U.S. Attorney Paul J. Fishman announced.
Joseph W. Witkowski, 68, of Flemington, N.J., pleaded guilty before U.S. District Judge Joseph E. Irenas in Camden federal court to an indictment charging him with one count each of conspiracy to commit wire fraud and conspiracy to commit money laundering. Witkowski, a former attorney, was released on bail.
According to documents filed in this case and statements made in court:
Witkowski and his conspirators located oceanfront condominiums overbuilt by financially distressed developers in Wildwood Crest, N.,J.; premier real estate in vacation destinations in Georgia and South Carolina; and properties in New Jersey owned by financially distressed homeowners facing foreclosure. They then recruited “straw buyers” – people with good credit scores but lacking the financial resources to qualify for mortgage loans – to purchase those properties.
Witkowski and his conspirators created false documents, including fake W-2 forms, income tax returns, investment statements, and rental agreements, to make the straw buyers appear more creditworthy than they actually were. They also established numerous telephone lines for companies owned by some of the conspirators so that when a lender contacted the telephone number, the conspirators could falsely verify that a straw buyer was employed by the company listed on his or her fraudulent loan application.
Witkowski also caused fraudulent mortgage loan applications in the name of the straw buyers and supporting documents, which attributed to the straw buyers inflated income and assets, to be submitted to mortgage lenders. Once the loans were approved and the mortgage lenders sent the loan proceeds in connection with real estate closings on the properties, Witkowski and his conspirators had some of the funds wired or checks deposited into various accounts that he and his conspirators controlled.
To date, 10 of Witkowski’s conspirators have pleaded guilty to participating in this mortgage fraud conspiracy, including Charles Harvath, Stephen F. Corba Jr., John Siuszko, Michael Williams, William Brown, Mark Kreischer, Crystal Brame, Aku I. Muhammad, George Lachenmayr Jr. and Robert Serao.
The wire fraud conspiracy charge to which Witkowski pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine. The money laundering conspiracy charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Witkowski has agreed to forfeit $2,412,899, representing the proceeds of the fraud. Sentencing is scheduled for Nov. 14, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden.
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Defense counsel: Maggie Moy Esq., Assistant Federal Public Defender, Camden
Witkowski, Joseph et. al. Indictment
Former Mingo Prosecuting Attorney Sentenced to Federal PrisonRead the Press Release
CHARLESTON, W.Va. – Former Mingo County prosecuting attorney C. Michael Sparks was sentenced today to a year in federal prison, United States Attorney Booth Goodwin announced. The sentence comes after Sparks admitted his role in a scheme to coerce a Mingo County drug defendant, George White, into firing his defense counsel. According to Sparks, he and other Mingo officials, including former county commissioner David Baisden and former sheriff Eugene Crum, learned that White was prepared to testify that then-Sheriff Crum had been involved in criminal activity. In order to protect Crum from the impact of White’s allegations, including possible investigation, Baisden, Sparks, Crum, and former Mingo circuit judge Michael Thornsbury carried out a plan to pressure White into firing his defense attorney and replacing him with another attorney handpicked by the conspirators. After switching lawyers, White dropped his allegations against Crum and was sentenced to up to fifteen years in state prison.
The United States Constitution entitles criminal defendants to counsel of their choosing. By using their official authority to coerce White into firing his chosen lawyer and replacing him with the lawyer that they wanted, Sparks and the others involved violated that right. Using public authority to violate a person’s constitutional rights is a federal crime.
In the midst of the White scheme, federal investigators approached Sparks for information about wrongdoing by him and other Mingo officials. Sparks agreed to cooperate with authorities, becoming the first of a group of corrupt Mingo officeholders to assist federal agents. The information that Sparks provided laid the groundwork for a successful investigation of wrongdoing among those officials. To date, that investigation has led to federal prison terms for former Mingo County circuit judge Michael Thornsbury, former Mingo County commissioner David Baisden, and former Mingo County chief magistrate Dallas “Big Dal” Toler. In addition to their prison sentences, each of those officials has resigned his office as a result of the federal investigation, and Thornsbury and Sparks have lost their licenses to practice law.
Because of Sparks’ early and valuable participation in the investigation, Goodwin’s office sought a one-year prison sentence in Sparks’ case—significantly shorter than the sentences imposed on his fellow former officials.
“This sentence strikes an appropriate balance,” said U.S. Attorney Goodwin. “It punishes wrongdoing while encouraging officials involved in public corruption to come forward, admit what they’ve done, and help federal authorities. What Sparks did was indefensible, and he deserves prison time. But his early cooperation was vital to our investigation in Mingo County. This sentence underscores that telling the truth at the beginning of an investigation is always a wise decision.”
Today’s sentence was imposed by United States District Judge Thomas E. Johnston, who last month sentenced Thornsbury to 50 months in prison for his role in the same scheme in which Sparks was involved and in March sentenced Toler to 27 months in prison for election fraud. In sentencing Sparks, Judge Johnston focused on the importance of Sparks’ early and truthful cooperation with federal officials.
In January, after pleading guilty in an extortion scheme, Baisden was sentenced to 20 months’ imprisonment by United States District Judge John T. Copenhaver, Jr.
The investigation of corruption in Mingo County is being conducted by the Federal Bureau of Investigation and the West Virginia State Police. Counsel to the United States Attorney Steven R. Ruby and Assistant United States Attorney C. Haley Bunn are in charge of the prosecutions.
Former Mingo Prosecuting Attorney Sentenced to Federal PrisonRead the Press Release
CHARLESTON, W.Va. – Former Mingo County prosecuting attorney C. Michael Sparks was sentenced today to a year in federal prison, United States Attorney Booth Goodwin announced. The sentence comes after Sparks admitted his role in a scheme to coerce a Mingo County drug defendant, George White, into firing his defense counsel. According to Sparks, he and other Mingo officials, including former county commissioner David Baisden and former sheriff Eugene Crum, learned that White was prepared to testify that then-Sheriff Crum had been involved in criminal activity. In order to protect Crum from the impact of White’s allegations, including possible investigation, Baisden, Sparks, Crum, and former Mingo circuit judge Michael Thornsbury carried out a plan to pressure White into firing his defense attorney and replacing him with another attorney handpicked by the conspirators. After switching lawyers, White dropped his allegations against Crum and was sentenced to up to fifteen years in state prison.
The United States Constitution entitles criminal defendants to counsel of their choosing. By using their official authority to coerce White into firing his chosen lawyer and replacing him with the lawyer that they wanted, Sparks and the others involved violated that right. Using public authority to violate a person’s constitutional rights is a federal crime.
In the midst of the White scheme, federal investigators approached Sparks for information about wrongdoing by him and other Mingo officials. Sparks agreed to cooperate with authorities, becoming the first of a group of corrupt Mingo officeholders to assist federal agents. The information that Sparks provided laid the groundwork for a successful investigation of wrongdoing among those officials. To date, that investigation has led to federal prison terms for former Mingo County circuit judge Michael Thornsbury, former Mingo County commissioner David Baisden, and former Mingo County chief magistrate Dallas “Big Dal” Toler. In addition to their prison sentences, each of those officials has resigned his office as a result of the federal investigation, and Thornsbury and Sparks have lost their licenses to practice law.
Because of Sparks’ early and valuable participation in the investigation, Goodwin’s office sought a one-year prison sentence in Sparks’ case—significantly shorter than the sentences imposed on his fellow former officials.
“This sentence strikes an appropriate balance,” said U.S. Attorney Goodwin. “It punishes wrongdoing while encouraging officials involved in public corruption to come forward, admit what they’ve done, and help federal authorities. What Sparks did was indefensible, and he deserves prison time. But his early cooperation was vital to our investigation in Mingo County. This sentence underscores that telling the truth at the beginning of an investigation is always a wise decision.”
Today’s sentence was imposed by United States District Judge Thomas E. Johnston, who last month sentenced Thornsbury to 50 months in prison for his role in the same scheme in which Sparks was involved and in March sentenced Toler to 27 months in prison for election fraud. In sentencing Sparks, Judge Johnston focused on the importance of Sparks’ early and truthful cooperation with federal officials.
In January, after pleading guilty in an extortion scheme, Baisden was sentenced to 20 months’ imprisonment by United States District Judge John T. Copenhaver, Jr.
The investigation of corruption in Mingo County is being conducted by the Federal Bureau of Investigation and the West Virginia State Police. Counsel to the United States Attorney Steven R. Ruby and Assistant United States Attorney C. Haley Bunn are in charge of the prosecutions.
Former East Carroll Parish Sheriff Sentenced to Three Years ProbationRead the Press Release
MONROE, La. – The former sheriff of East Carroll Parish was sentenced to three years of probation for hunting with a convicted felon who was sentenced prior to 2014 and barred from possessing a firearm, U.S. Attorney Stephanie A. Finley announced today.
Former East Carroll Parish Sheriff Mark Wayne Shumate, 52, of Lake Providence, La., was sentenced by U.S. District Judge Robert G. James for one count aiding and abetting a felon in the possession of a firearm. According to evidence presented at the guilty plea, on April 1, 2014, Shumate and the convicted felon went hunting on January 8, 2014. Shumate had full knowledge that the person accompanying him was barred from possessing and firing a firearm.
The FBI and ATF conducted the investigation. Assistant U.S. Attorney Joseph G. Jarzabek prosecuted the case.
Federal Marijuana Case UpdateRead the Press Release
FRESNO, Calif. — One marijuana cultivator pleaded guilty and one was sentenced today for cultivation operations in Kern and Stanislaus Counties, United States Attorney Benjamin B. Wagner announced.
8,876 Marijuana Plants and Illegal Pesticides Seized from Sequoia National Forest
(1:12-cr-184 AWI)Hernan Cortez Villaseñor (Cortez), 40, of Michoacàn, Mexico, pleaded guilty to conspiring to manufacture, distribute and possess with intent to distribute marijuana, and distributing unregistered pesticides, in violation of the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA). In pleading guilty, Cortez also agreed to pay $3,328 to the U.S. Forest Service for the damage caused by his marijuana cultivation operation in the Greenhorn Creek area of the Sequoia National Forest.
According to court documents, the Greenhorn Creek site sustained extensive damage as a result of the cultivation activities. Native oak trees and other vegetation were cut down or otherwise killed to make room for the 8,876 marijuana plants planted there. The soil was tilled, and fertilizers and pesticides, including Fosfuro de Zinc, a common Mexican rat poison containing zinc phosphide, were spread throughout the site. Law enforcement officers also found 30 containers of Fosfuro de Zinc at Cortez’s residence in Arvin, Calif. after Cortez delivered supplies to the cultivation operation.The EPA has designated zinc phosphide as a restricted use pesticide, which means that it may only be purchased and used by, or under the supervision of, a certified applicator. Zinc phosphide is banned for residential sale due to its acute toxicity. A single swallow can be fatal to a small child.Cortez is scheduled for sentencing on September 22, 2014. He faces a mandatory minimum prison term of 10 years and a maximum prison term of life for the drug conspiracy. The pesticide charge carries a maximum penalty of one year in prison and a fine of $100,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables. Upon completion of any prison term imposed, Cortez is subject to deportation to Mexico.
This case is the product of an investigation by the U.S. Forest Service, U.S. Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Environmental Protection Agency Criminal Investigation Division (EPA-CID), and the Kern County Sheriff’s Office.
907 Marijuana Plants Seized in Newman River Case (1:12-cr-342 AWI)
Symery Saykganya, 58, of Modesto, was sentenced to two years in prison for conspiring to manufacture, distribute and possess with intent to distribute marijuana following his guilty plea earlier this year. According to his plea agreement, Saykganya was found at a marijuana grow site in a rural area along the San Joaquin River in the vicinity of Newman. Drug agents also found and eradicated 907 marijuana plants that were irrigated by water diverted from the river. Agents also found purported medical marijuana recommendations posted at the site, along with a firearm.
The case was the product of an investigation by federal agents from the DEA and Stanislaus Drug Enforcement Agency, a multi-agency drug task force in Modesto.
Assistant United States Attorney Karen Escobar handled the above prosecutions.
Erie Teen Sentenced to 3 Years in Prison for RobberyRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 37 months in prison and ordered to pay $5,000.70 in restitution on his conviction of robbery of a person in possession of property of the United States, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Elijah Devon Sherrod, 19.
According to information presented to the court, on or about July 16, 2013, the defendant, along with a co-defendant, displayed a handgun, threatened, and robbed an individual of money and property that was under the control of the United States.
Prior to imposing sentence, Judge Cercone commented on the seriousness of the offense and determined that Sherrod and his co-defendant who planned the robbery, Latisha Marie Palochak, were equally culpable for the crime.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the EAGLE task force, which is comprised of members of the Federal Bureau of Investigation, the Erie Police Department and the Pennsylvania Office of Attorney General Bureau of Narcotics Investigation for the investigation leading to the successful prosecution of Sherrod.
Erie Man Sentenced for Violating Sexual Exploitation of Children LawsRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 33 months in jail and 6 years supervised release on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Joshua Michael Falk, 22.
According to information presented to the court, Falk possessed computer images and movies depicting minors engaging in sexually explicit conduct.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Pennsylvania State Police for the investigation leading to the successful prosecution of Falk.
Launched in February 2006, Project Safe Childhood is a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys' Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Elk County Man Sentenced to Probation for Helping Felon Acquire WeaponsRead the Press Release
ERIE, Pa. - A resident of Johnsonburg, Pennsylvania, has been sentenced in federal court to 18 months probation on his conviction of conspiracy to possess firearms by a convicted felon, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on David Arthur Blashaw, 57.
According to information presented to the court, Blashaw entered into a conspiracy with Francis Anthony Milliard in order for Milliard to possess firearms while being a convicted felon.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pennsylvania State Police for the investigation leading to the successful prosecution of Blashaw.
Delaware Man Charged with Investment FraudRead the Press Release
Kevin N. Boardman, 45, of Wilmington, DE, was charged by indictment, filed on June 26, 2014, with multiple counts of mail fraud, announced United States Attorney Zane David Memeger. Boardman is a pilot who served as Director of Aviation and Chief Pilot at a family-owned investment management company (“Company A”), in its Aviation Department located in Delaware County. It is alleged that between 2006 and 2013, Boardman devised numerous methods to embezzle money from his employer, eventually stealing over $2.7 million from Company A.
The indictment alleges that among his methods to steal from his employer was a false invoicing scam. Boardman allegedly established two companies, Optical Axes, Inc. (“Optical Axes”) and Airside Monitor LLC (“Airside”), which were front companies that supplied no goods and provided no services. Optical Axes purportedly operated from Lakewood, New York, and Airside from Dover and Wilmington, Delaware. The indictment alleges that Boardman caused approximately 50 invoices from these front companies to be issued to Company A, which paid the invoices by mailing checks to the phony business addresses.
If convicted, the defendant faces a maximum possible sentence of 20 years of imprisonment on each of the ten counts in the indictment, threeyears of supervised release, a $2.5 million fine, a $1,000 special assessment, and criminal forfeiture.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Nancy E. Potts.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
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PATTY HARTMAN, Media Contact, 215-861-8525Citizen of Mexico Sentenced to 30 Months in Federal Prison for Illegally Reentering U.S. After DeportationRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARCOS MARTINEZ-GUTIERREZ, 43, a citizen of Mexico last residing in Norwalk, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 30 months of imprisonment for illegally reentering the U.S. after he was deported.
According to court documents and statements made in court, MARTINEZ-GUTIERREZ has never held legal status in the U.S. and has been removed from the U.S. to his native Mexico on three separate occasions, most recently in June 2011.
While unlawfully in the U.S. since at least 1990, MARTINEZ-GUTIERREZ has amassed a criminal history that includes four convictions for driving while intoxicated, three convictions for possession of narcotics, two convictions for assault against his then-girlfriend, one conviction for patronizing a prostitute, one conviction for criminal impersonation and two convictions for illegal entry.
MARTINEZ-GUTIERREZ has been in custody since March 3, 2013. In July 2013, he was sentenced in Connecticut state court to three years of incarceration for possession of narcotics and criminal impersonation.
On April 14, 2014, MARTINEZ-GUTIERREZ pleaded guilty in federal court to one count of illegal reentry of a removed alien. Judge Thompson ordered MARTINEZ-GUTIERREZ to serve his 30-month federal sentence after he is released from state custody.
This matter was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations. The case was prosecuted by Assistant U.S. Attorneys Krishna R. Patel and Carolyn A. Ikari.
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(203) 821-3722 [email protected]Ceredo Woman Sentenced for Role in Heroin ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Ceredo woman was sentenced today to 18 months in federal prison for her role in a heroin distribution conspiracy, announced U.S. Attorney Booth Goodwin. Helen Louise Adkins, 43, previously pleaded guilty in January 2014 to distribution of heroin before Chief United States District Judge Robert C. Chambers in Huntington.
On January 18, 2013, Adkins met with an undercover agent in the parking lot of a grocery store in Huntington and distributed approximately two grams of heroin. As part of her plea agreement, Adkins admitted her involvement in a conspiracy with Bobby Nelson Gulley and Alanna Lynn Mattison that resulted in the transportation of heroin and oxycodone from Detroit, Michigan, to Huntington for distribution. Between January and August 2013, Adkins rented an apartment located at 522 14th Street West, in Huntington, from which she permitted Gulley to conduct drug distributions. Adkins also made heroin distributions at Gulley’s direction.
In August 2013, agents executed search warrants at multiple locations tied to Gulley and Adkins, recovering over 140 grams of heroin, 974 oxycodone tablets and $12,000 in cash. Gulley previously pleaded guilty in connection with his involvement in the conspiracy and was sentenced in May 2014 to 63 months in federal prison.
The Drug Enforcement Administration and Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.