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2 July 2014
Three Central West Virginia Men Convicted on Federal Drug and Firearms ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs Specialist
CLARKSBURG, WEST VIRGINIA — Three Central West Virginia men appeared in United States District Court before Magistrate Judge John S. Kaull and entered pleas of guilty.United States Attorney William J. Ihlenfeld, II, announced that:
Jason MARPLE, age 35, of Clarksburg, West Virginia, a former Harrison County Sheriff’s Department Process Server, entered pleas of guilty to one count of distribution of oxycodone within 1,000 feet of Clarksburg City Park playground and one count of knowingly possessing a firearm in furtherance of that drug trafficking crime. MARPLE, who is in custody pending sentencing, faces up to life in prison.
Chad Alton REGISTER, age 31, of Anmoore, West Virginia, entered a plea of guilty to the distribution of oxycodone.
Russell POWERS, also known as Rusty, age 49, of Clarksburg, entered a plea of guilty to possession with intent to distribute oxycodone.
REGISTER and POWERS, who are free on bond, face up to 20 years in prison.
The case was prosecuted by Assistant United States Attorney Shawn A. Morgan, and was investigated by the Greater Harrison County Drug & Violent Crime Task Force and the Three Rivers Drug Task Force.
Ten Individuals Sentenced for Federal Supervised Release ViolationsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II, announced that during the month of June ten (10) individuals were sentenced by Judge Gina M. Groh for violations of the terms and conditions of their supervised release imposed by the United States District Court.
Paul Lee Jackson, age 45, of Martinsburg, West Virginia, was sentenced to 37 months in prison for testing positive for the use of cocaine; failure to be truthful with probation officer; and, being charged and arrested in Berkeley County Magistrate Court for possession with intent to distribute a controlled substance. Jackson was originally sentenced on July 15, 2003, to 240 months in prison and five years of supervised release for conspiracy to distribute cocaine base. In October of 2009, Jackson’s sentence was reduced to 176 months in prison and again in November of 2011, Jackson’s sentence was reduced to 128 months in prison due to the crack resentencing guidelines. Jackson was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Gerald David Gibbs, age 26, of Martinsburg, was sentenced to 24 months in prison for associating with a convicted felon; failure to notify probation officer within 72 hours of police contact; testing positive for the use of cocaine; failure to be truthful with probation officer; frequenting a location where illegal substances are located; changing address without notifying probation officer 10 days in advance; and, a charge of No Operator’s. Gibbs was originally sentenced on July 30, 2010, to 60 months in prison and four years of supervised release for the distribution of cocaine base. Gibbs was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Timothy William Cook, age 29, of Martinsburg, was sentenced to 24 months in prison for failure to complete and submit monthly reports to the probation office; failure to respond to notifications of probation officer; and, failure to notify probation officer of a change in employment status. Cook was originally sentenced on January 17, 2006, to 97 months in prison and 3 years of supervised release for possession with intent to distribute heroin. Cook was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Brandy Netz, age 39, of Martinsburg, was sentenced to 18 months in prison for committing another crime of distribution of cocaine base and arranging a purchase of heroin. Netz was originally sentenced on August 5, 2008, to 18 months in prison and five years of supervised release for possession with intent to distribute cocaine base. On September 12, 2013, Netz supervised release was revoked and she was sentenced to four months in prison and 18 months of supervised release for failure to be truthful with probation officer; testing positive for the use of cocaine; failure to follow instructions of the probation officer; and, being charged with other criminal violations, i.e. failure to maintain control, failure to stop at a stop sign, destruction of property and two counts of no child restraint. Netz was remanded to the custody of the United States Marshal pending designation to a Federal institution.
William Matthew Redman, age 47, of Martinsburg, was sentenced to 12 months and 1 day in prison and 18 months of supervised release for failure to notify probation officer of change of address; being charge in Berkeley County Magistrate Court with possession of heroin; associating with a convicted felon; possession of heroin and drug paraphernalia; and, frequenting places where controlled substances were illegally sold, distributed or administered. Redman was originally sentenced on March 13, 2003, to 151 months in prison and three years of supervised release for the distribution of cocaine base. In February of 2009, Redman’s sentence was reduced to 130 months pursuant to the crack resentencing guidelines. Redman was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Ronald Allen Brown, age 36, of Martinsburg, was sentenced to 12 months and 1 day in prison for possession of drug paraphernalia; failure to respond to probation officer; and, admitted use of heroin. Brown was originally sentenced on November 15, 2004, to 108 months in prison and three years of supervised release for the distribution of heroin. Brown was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Devonnie Joseph Cooper, age 26, of Martinsburg, was sentenced to 12 months and 1 day in prison, with three months of the imprisonment term to be served on home confinement, for admitted use of oxycodone; failure to following instructions of the probation officer; and, failure to report to the probation office on six different occasions. Cooper was originally sentenced on January 29, 2008, to 60 months in prison and four years of supervised release for possession with intent to distribute cocaine base. On March 21, 2003, Cooper’s supervised release was revoked and he was sentenced to 5 months in prison and four years of supervised release for admitted use of marijuana and cocaine; testing positive for the use of marijuana; and, attempting to provide an altered/fake urine sample. Cooper was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Timothy Douglas Imperio, age 33, of Keyser, West Virginia, was sentenced to 12 months in prison for testing positive for the use of amphetamine, marijuana, suboxone and loracet (not prescribed to him); admitted use of xanax (not prescribed to him); charges of failure to display license and no seatbelt; two charges for shoplifting; failure to notify probation officer of new charges; and charges of DUI-2nd offense, no proof of insurance and no operator’s. Imperio was originally sentenced on July 13, 2009, to 30 months in prison and three years of supervised release for perjury before a grand jury. On January 7, 2013, Imperio’s supervised release was revoked and he was sentenced to six months in prison and 30 months of supervised release for failure to maintain employment; failure to notify probation officer of change in employment status; failure to file monthly report form; and, failure to be truthful with probation officer. Imperio was remanded to the custody of the United States Marshal pending designation to a Federal institution and will receive credit for time served since June 2, 2014.
Michael Hunter Norris, age 37, was sentenced to 10 months in prison and 100 months of supervised release for abuse of prescribed medication; failure to notify probation officer of move; and, leaving hospital without notify probation office of residential location. Norris was originally sentenced on July 2, 2012, to 15 months in prison and 10 years of supervised release for failure to register as a sex offender. On July 25, 2013, Norris’ supervised release was revoked and he was sentenced to 5 months in prison and 115 months of supervised release for testing positive and admitting to the use of marijuana as well as testing positive and denying the use of marijuana. Norris was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Steven Blunt, age 40, of Harpers Ferry, West Virginia, was sentenced to 6 months in prison and 42 months of supervised release for testing positive for the use of heroin; morphine, suboxone, opiates and methadone; being observed by probation officers with driving without a valid driver’s license; being untruthful with probation officer; and, failure to complete counseling as directed. Blunt was originally sentenced on December 10, 2010, to 60 months in prison and four years of supervised release for the possession with intent to distribute heroin. Blunt was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The United States was represented at the revocation hearings by Assistant U.S. Attorneys Jarod J. Douglas and Paul T. Camilletti.
The United States Probation Office carries out probation and pretrial services functions throughout the Northern District of West Virginia. With locations in Wheeling, Clarksburg, Martinsburg, and Elkins, the office works to assist the federal courts in the fair administration of justice, to protect the community, and to bring about long-term positive change in individuals under supervision. Jeff Givens is the Chief Probation Officer for the Northern District.
Ten Individuals Sentenced for Federal Supervised Release and Probation ViolationsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II, announced that during the month of June ten (10) individuals had their supervised release or probation revoked for violating terms and conditions imposed by the United States District Court.
WHEELING DIVISION REVOCATIONS (Judge Frederick P. Stamp, Jr.)
James Timothy Snyder, III, age 31, of Steubenville, Ohio, was sentenced to 24 months in prison for a new felony conviction of reckless fleeing in a vehicle, failure to submit monthly supervision reports, failure to notify probation office with change of address and failure to report an arrest to the probation office within 72 hours. Snyder was originally sentenced on May 12, 2007, to 54 months in prison and six years of supervised release for the distribution of cocaine base within 1,000 feet of a protected location. In August of 2008, Snyder’s sentence was reduced to 44 months in prison pursuant to the crack resentencing guidelines. Snyder was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Shawn Henderson, age 46, of Wheeling, West Virginia, was sentenced to 18 months in prison for the possession and use of cocaine; traveling out of the district without the permission of the probation officer; and, associating with known felons. Henderson was originally sentenced on March 1, 2010, to 43 months in prison and six years of supervised release for the distribution of cocaine within 1,000 feet of a protected location. Henderson was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Emanuel Banks, age 40, of Columbus, Ohio, was sentenced to 14 months in prison, to run consecutively to the 140-month sentence he received in April of 2014 for the May of 2013 distribution of cocaine base. Banks was originally sentenced on March 18, 1994, to 57 months in prison and six years of supervised release for the distribution of cocaine base. In March of 2008, Banks was reduced to 47 months in prison pursuant to the crack resentencing guidelines. Banks was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Ian Welshans, age 32, of Wheeling, was sentenced to 30 days in prison and 18 months of supervised release for excessive use of alcohol; failure to report for drug testing; and, failure to register as a sex offender. Welshans was originally sentenced on March 5, 2012, to 15 months in prison and three years of supervised release for attempting to transfer obscenity to a minor. Welshans self-reported to the Northern Regional Jail on June 30, 2014.
ELKINS DIVISION REVOCATIONS (Chief Judge John Preston Bailey)
Matthew Shane Burns of Norton, West Virginia, was sentenced to 12 months and 1 day in prison for possession and use of a controlled substance, associating with persons engaged in criminal activity, excessive use of alcohol and commission of another crime. Burns was originally sentenced on May 10, 2005, to 77 months in prison and three years of supervised release for felon in possession of a firearm. Burns was remanded to the custody of the United States Marshal pending designation to a Federal institution and will receive credit for time served since May 7, 2014.
Stephen Blake Landis, Jr. of Randolph County, West Virginia, was sentenced to 12 months and 1 day in prison for use of a controlled substance and alcohol. Landis was originally sentenced on May 9, 2011, to 10 months in prison and three years of supervised release for the distribution of methamphetamine. Burns was remanded to the custody of the United States Marshal pending designation to a Federal institution.
CLARKSBURG DIVISION REVOCATIONS (Judge Irene M. Keeley)
Kevin Wayne Bennett, age 41, of Clarksburg, West Virginia, was sentenced to 12 month in prison and 24 months of supervised release for unlawful possession and use of controlled substances and alcohol and a location monitoring violation. Bennett was originally sentenced on June 4, 2009, to 70 months in prison and three years of supervised release for maintaining a drug-involved premise. In October of 2011, Bennett’s sentence was reduced to 57 months in prison due to the crack resentencing guidelines. Bennett, who is free on bond, will self-report to the designated Federal institution.
Naquan Warren, age 24, of Fairmont, West Virginia, was sentenced to six months in prison and 24 months of supervised release for unlawful possession and use of a controlled substance and associating with a known felon. Warren was originally sentenced on November 2, 2012, to 10 months in prison and three years of supervised release for aiding and abetting in the distribution of heroin within 1,000 feet of a protected location. Warren was remanded to the custody of the United States Marshal pending designation to a Federal institution and will receive credit for time served since May 7, 2014.
Charles Clint Gaines, Jr., age 26, of Clarksburg, was sentenced to 6 months in prison and 30 months of supervised release for failure to report to probation officer; failure to truthfully answer all inquiries of probation officer; failure to participate in substance abuse testing, counseling and treatment; and, associating with persons engaged in criminal activity. Gaines was originally sentenced on February 10, 2010, to 60 months in prison and three years of supervised release for the distribution of cocaine base. In October of 2011, Gaines sentence was reduced to 57 months in prison pursuant to the crack resentencing guidelines. Gaines was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Joel Levine, age 48, of Morgantown, West Virginia, was sentenced to 2 months in prison and three years of supervised release for possession and consumption of alcohol; unlawful use of marijuana and failure to participate in drug and alcohol treatment as directed by the probation officer. Levine was originally sentenced on November 22, 2010, to 5 years probation for being a felon in possession of a firearm. Levine, who is free on bond, will self-report to the designated Federal institution.
The United States was represented at the revocation hearings by U.S. Attorney Ihlenfeld and Assistant U.S. Attorneys John C. Parr, Randolph J. Bernard, Shawn A. Morgan, Zelda E. Wesley and Andrew R. Cogar.
The United States Probation Office carries out probation and pretrial services functions throughout the Northern District of West Virginia. With locations in Wheeling, Clarksburg, Martinsburg, and Elkins, the office works to assist the federal courts in the fair administration of justice, to protect the community, and to bring about long-term positive change in individuals under supervision. Jeff Givens is the Chief Probation Officer for the Northern District.
Shreveport Man Pleads Guilty to Stealing from ATMRead the Press Release
SHREVEPORT, La. –A Shreveport man pleaded guilty Tuesday to stealing more than $30,000 from an ATM located on bank property causing more than $35,000 worth of damage in the process, U.S. Attorney Stephanie A. Finley announced today.
Frederick Charles Davis, 46, of Shreveport, pleaded guilty before U.S. District Judge S. Maurice Hicks Jr. to one count of bank theft. According to evidence presented at the guilty plea, Davis broke open an automated teller machine (ATM) on July 13, 2012 located at the end of a drive-through lane at a Richland State Bank in Minden, La., and stole $30,320. He used a power tool and a chain attached to the back of his truck to open the ATM, which caused $35,242 in damage.
Davis faces a maximum penalty of 10 years in prison, three years of supervised release, a $250,000 fine, forfeiture and restitution. An October 2, 2014 sentencing date was set.The FBI conducted the investigation. Assistant U.S. Attorney Allison D. Bushnell is prosecuting the case.
Seven Colombian Nationals Charged in Connection with the Murder of a DEA Agent Extradited to the United StatesRead the Press Release
Seven Colombian nationals were extradited to the United States to face charges relating to the kidnapping and murder of Drug Enforcement Administration (DEA) Special Agent James Terry Watson.
Attorney General Eric H. Holder, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente for the Eastern District of Virginia, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, DEA Administrator Michele M. Leonhart and Director Bill A. Miller of the State Department’s Diplomatic Security Service (DSS) made the announcement.
“With the extradition of these suspects, we are one step closer to ensuring that justice is served for the kidnapping and murder of an American hero,” said Attorney General Holder. “Special Agent Watson gave his life in the service of his country. We owe him, and his family, a debt of gratitude we can never fully repay. The Justice Department will never waver in our commitment to ensure that those who commit acts of violence against our best and bravest can be caught and held accountable.”
“DEA Special Agent James ‘Terry’ Watson was a brave and talented special agent who represented everything good about federal law enforcement and our DEA family,” said DEA Administrator Leonhart. “We will never forget Terry’s sacrifice on behalf of the American people during his 13 years of service, nor will DEA ever forget the outstanding work of the Colombian National Police and our other law enforcement partners. Their efforts quickly led to the arrest and extradition of those accused of committing this heinous act.”
All of the defendants were indicted by a grand jury in the Eastern District of Virginia on July 18, 2013. Gerardo Figueroa Sepulveda, 39; Omar Fabian Valdes Gualtero, 27; Edgar Javier Bello Murillo, 27; Hector Leonardo Lopez, 34; Julio Estiven Gracia Ramirez, 31; and Andrés Alvaro Oviedo-Garcia, 22, were each charged with two counts of second degree murder, one count of kidnapping and one count of conspiracy to kidnap. Oviedo-Garcia was also charged with two counts of assault. Additionally, the grand jury indicted Wilson Daniel Peralta-Bocachica, 31, also a Colombian national, for his alleged efforts to destroy evidence associated with the murder of Special Agent Watson.
The defendants arrived in the United States on July 1, 2014, and made their initial appearance in federal court in Alexandria, Virginia, today before United States Magistrate Judge Thomas Rawles Jones Jr. A detention hearing is scheduled for July 9, 2014, before United States Magistrate Judge Ivan D. Davis.
According to the indictment, Figueroa, Valdes, Bello, Lopez, Gracia and Oviedo-Garcia were part of a kidnapping and robbery conspiracy that utilized taxi cabs in Bogotá, Colombia, to lure victims into a position where they could be attacked and robbed. Once an intended victim entered a taxi cab, the driver of the taxi cab would signal other conspirators to commence the robbery and kidnapping operation.
The indictment alleges that on June 20, 2013, while he was working for the U.S. Mission in Colombia, Special Agent Watson entered a taxi cab operated by one of the defendants. Special Agent Watson was then allegedly attacked by two other defendants – one who stunned Special Agent Watson with a stun gun and another who stabbed Special Agent Watson with a knife, resulting in his death.
On July 1, 2014, the Government of Colombia extradited the defendants to the United States.
This case was investigated by the FBI, DEA and DSS, including the Office of Special Investigations and the Regional Security Office at Embassy Bogatá, in close cooperation with Colombian authorities, and with assistance from INTERPOL and the Justice Department’s Office of International Affairs. The case is being prosecuted by Special Counsel Stacy Luck of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Michael P. Ben’Ary from the U.S. Attorney’s Office for the Eastern District of Virginia.
The Department of Justice gratefully acknowledges the Colombian Attorney General’s Office, Colombian National Police, Colombian Directorate of Criminal Investigation and Interpol (DIJIN), DIJIN Special Investigative Unit, Bogotá Metropolitan Police, Bogotá Police Intelligence Body (CIPOL) Unit and Colombian Technical Investigation Team for their extraordinary efforts, support and professionalism in responding to this incident.
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.Seven Colombian Nationals Charged in Connection with the Murder of A DEA Agent Extradited to the United StatesRead the Press Release
ALEXANDRIA, Va. – Seven Colombian nationals were extradited to the United States to face charges relating to the kidnapping and murder of Drug Enforcement Administration (DEA) Special Agent James Terry Watson.
Attorney General Eric H. Holder, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente for the Eastern District of Virginia, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, DEA Administrator Michele M. Leonhart and Director Bill A. Miller of the State Department’s Diplomatic Security Service (DSS) made the announcement.
“With the extradition of these suspects, we are one step closer to ensuring that justice is served for the kidnapping and murder of an American hero,” said Attorney General Holder. “Special Agent Watson gave his life in the service of his country. We owe him, and his family, a debt of gratitude we can never fully repay. The Justice Department will never waver in our commitment to ensure that those who commit acts of violence against our best and bravest can be caught and held accountable.”
“DEA Special Agent James ‘Terry’ Watson was a brave and talented special agent who represented everything good about federal law enforcement and our DEA family,” said DEA Administrator Leonhart. “We will never forget Terry’s sacrifice on behalf of the American people during his 13 years of service, nor will DEA ever forget the outstanding work of the Colombian National Police and our other law enforcement partners. Their efforts quickly led to the arrest and extradition of those accused of committing this heinous act.”
All of the defendants were indicted by a grand jury in the Eastern District of Virginia on July 18, 2013. Gerardo Figueroa Sepulveda, 39; Omar Fabian Valdes Gualtero, 27; Edgar Javier Bello Murillo, 27; Hector Leonardo Lopez, 34; Julio Estiven Gracia Ramirez, 31; and Andrés Alvaro Oviedo-Garcia, 22, were each charged with two counts of second degree murder, one count of kidnapping and one count of conspiracy to kidnap. Oviedo-Garcia was also charged with two counts of assault. Additionally, the grand jury indicted Wilson Daniel Peralta-Bocachica, 31, also a Colombian national, for his alleged efforts to destroy evidence associated with the murder of Special Agent Watson.
The defendants arrived in the United States on July 1, 2014, and made their initial appearance in federal court in Alexandria, Virginia, today before United States Magistrate Judge Thomas Rawles Jones Jr. A detention hearing is scheduled for July 9, 2014, before United States Magistrate Judge Ivan D. Davis.
According to the indictment, Figueroa, Valdes, Bello, Lopez, Gracia and Oviedo-Garcia were part of a kidnapping and robbery conspiracy that utilized taxi cabs in Bogotà, Colombia, to lure victims into a position where they could be attacked and robbed. Once an intended victim entered a taxi cab, the driver of the taxi cab would signal other conspirators to commence the robbery and kidnapping operation.
The indictment alleges that on June 20, 2013, while he was working for the U.S. Mission in Colombia, Special Agent Watson entered a taxi cab operated by one of the defendants. Special Agent Watson was then allegedly attacked by two other defendants – one who stunned Special Agent Watson with a stun gun and another who stabbed Special Agent Watson with a knife, resulting in his death.
On July 1, 2014, the Government of Colombia extradited the defendants to the United States.
This case was investigated by the FBI, DEA and DSS, including the Office of Special Investigations and the Regional Security Office at Embassy Bogatà, in close cooperation with Colombian authorities, and with assistance from INTERPOL and the Justice Department’s Office of International Affairs. The case is being prosecuted by Special Counsel Stacy Luck of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Michael P. Ben’Ary from the U.S. Attorney’s Office for the Eastern District of Virginia.
The Department of Justice gratefully acknowledges the Colombian Attorney General’s Office, Colombian National Police, Colombian Directorate of Criminal Investigation and Interpol (DIJIN), DIJIN Special Investigative Unit, Bogotà Metropolitan Police, Bogotà Police Intelligence Body (CIPOL) Unit and Colombian Technical Investigation Team for their extraordinary efforts, support and professionalism in responding to this incident.
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.Tweet
Seal Beach Man Indicted in Foreclosure Rescue SchemeRead the Press Release
LOS ANGELES – A Corona woman, who is already charged with a $15 million bank fraud and bankruptcy f
Defendant’s Illegal Conduct Allegedly Continued after $5 Million Sanction by Judge
Los Angeles, California – A Seal Beach man is scheduled to be arraigned this afternoon after being indicted on federal fraud charges related to a mortgage rescue scheme in which he made false promises to the distressed homeowner, filed fraudulent bankruptcies to delay foreclosure and rented the property to third parties as the foreclosure proceedings were delayed.
Terrill “Terry” Meisinger, 74, is scheduled to be arraigned and enter a plea this afternoon to two counts of wire fraud and one count of aggravated identity theft. These charges are contained in a grand jury indictment that was returned on June 25.
Meisinger has been in federal custody since his arrest on a criminal complaint on June 11, 2014.
The indictment alleges that Meisinger defrauded the distressed homeowner by inducing him to sign a quitclaim in exchange for promises that included negotiating a short-sale agreement with his lender that would free the homeowner from his mortgage on a property on Monte Alban Drive in North Las Vegas, Nevada. But, instead, Meisinger caused a deed of trust to be recorded on the property, which was followed by a fraudulent bankruptcy on behalf of the person who supposedly now held an interest in the home. Meanwhile, Meisinger rented out the home to another person while foreclosure proceedings were stayed as a result of the fraudulent bankruptcy.
“Meisinger repeated the process of causing the recording of deeds of trusts in the names of various lenders whose identities he controlled and causing the filing of bankruptcies on behalf of those lenders to delay the foreclosure proceedings, while collecting rents on the Monte Alban Property,” according to the indictment.
While the indictment discussed only one property, the criminal complaint alleges that Meisinger engaged in more widespread conduct: “Based on the evidence, Meisinger has collected approximately more than $1.5 million in illicit rent payments on more than 100 properties and never made any mortgage payments on those properties. Further, he caused more than 300 bogus bankruptcy petitions to be filed in the names of numerous individuals who had no knowledge their identity was being used.”
The wire fraud charges in the indictment related to conduct that took place after a federal judge in 2012 ordered Meisinger to pay $5 million in civil penalties in connection with allegations of a massive fraud targeting homeowners, renters and lenders. In addition to ordering him to pay the fine, United States District Judge Virginia A. Phillips also prohibited Meisinger from participating in the home finance or real estate industries for 10 years. Meisinger was also barred from filing bankruptcy petitions (see: http://www.justice.gov/archive/usao/cac/Pressroom/2012/104.html). The criminal conduct alleged in the indictment is nearly identical to the conduct alleged in the government civil lawsuit.
Special Agent in Charge James Todak of the United States Department of Housing and Urban Development (HUD), Office of Inspector General stated that, “the arrest of Terry Meisinger sends an important message to real estate professionals that seek to rob vulnerable home owners of their money and homes through loan modification and foreclosure rescue scams. We recommend that home owners seeking mortgage assistance should first contact HUD-approved counseling agencies to better identify scams and avoid future cases of suspected fraud.”
The wire fraud charges alleged in the indictment each carry a statutory maximum penalty of 20 years in federal prison. The charge of aggravated identity theft carries a mandatory sentence of two years in prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
The criminal case against Meisinger is the result of an investigation by the United States Department of Housing and Urban Development, Office of the Inspector General (HUD-OIG).
Release No. 14-083
Sacramento Woman Pleads Guilty to Aggravated Identity Theft and A Scheme to DefraudRead the Press Release
SACRAMENTO, Calif. — Jennifer Ann Lynch, 37, of Sacramento, pleaded guilty Tuesday to two counts of mail fraud and a single count of aggravated identity theft, United States Attorney Benjamin B. Wagner announced.
According to court documents, on May 3, 2013, Lynch was arrested in Lincoln for unrelated California state offenses. She was later released from state custody on a $175,000 bond she obtained through fraud. Specifically, Lynch defrauded a bail bond company by falsely representing her assets, ability to pay, and her income in order to secure the bond. She also obtained and altered stolen money orders to pay for the bond.
On May 17, 2013, while Lynch was out of custody, she took checks that were stolen from the mail and opened a Safe Credit Union account using the identity of the mail theft victim including her name, date of birth, driver's license number, employer identification and security badge, social security number, and signature. Between May 17, 2013, and July 31, 2013, Lynch deposited additional stolen and altered checks. After she deposited stolen checks, she withdrew cash.
San Francisco Division Inspector in Charge Rafael Nunez of the United States Postal Inspection Service stated: “We are working closely with the U.S. Attorney's Office and our partners in law enforcement to ensure the U.S. Mail system is not used to facilitate criminal activity.”
This case is the product of an investigation by the United States Postal Inspection Service and the Placer County District Attorney's Office with assistance from the Roseville Police Department and the Sacramento Valley Hi-Tech Crimes Task Force. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.
Lynch is scheduled to be sentenced on September 16, 2014, by U.S. District Judge Lawrence K. Karlton. She faces up to 20 years in prison for each count of mail fraud and a mandatory minimum sentence of two years in prison for aggravated identity theft. 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.
Round Rock Man Pleads Guilty to Attempting to Provide Material Support to TerroristsRead the Press Release
In Austin this morning, 23-year-old Rahatul Ashikim Khan (a.k.a. “Rahat Khan,” “Authentic Tauheed 19,” and “AT19”) pleaded guilty to attempting to provide material support and resources to terrorists, announced Robert Pitman, United States Attorney for the Western District of Texas, Christopher Combs, Federal Bureau of Investigation Special Agent in Charge of the San Antonio Division, and John Carlin, Assistant Attorney General for National Security. He faces up to 15 years in federal prison for the offense.
Appearing before United States Magistrate Judge Mark Lane, Khan admitted that from March 2011 to January 2012, he conspired to provide material support to terrorists.
During the plea hearing Khan acknowledged that he intended to provide to a co-conspirator a confidential human source (CHS), whom Khan believed to be a person interested in participating in violent jihad overseas. The co-conspirator told Khan about a contact who could facilitate travel to Somalia, where persons would then engage in violent jihad. The co-conspirator asked Khan to identify individuals who would be good candidates to travel to Somalia to participate in violent jihad. Khan identified the CHS as a worthy candidate for violent jihad in Somalia and communicated this information and the CHS’s identity to the co-conspirator. The coconspirator subsequently contacted the CHS and further assessed the CHS’s suitability to fight overseas. The co-conspirator informed the CHS that he trusted the CHS because of Khan’s recommendation. After determining that the CHS was a good candidate for fighting in Somalia, the co-conspirator passed the CHS to a contact in Africa who then communicated with the CHS about the logistics of traveling to Africa in support of violent jihad.
“Rahatul Khan’s admissions during this morning’s guilty plea should serve as a sobering reminder that we need to remain vigilant in our efforts to detect and root out terrorism, even in our own back yard,” stated United States Attorney Robert Pitman. “Great credit is due to the dedicated law enforcement professionals whose tireless efforts contributed to the apprehension of Khan and Michael Wolfe, who pled last week in a separate case to similar charges. National security is, and will remain, the first priority of this office and our law enforcement partners.”
Khan remains in federal custody pending sentencing before United States District Judge Sam Sparks in Austin. No sentencing date has been scheduled.
This case resulted from a Central Texas Joint Terrorism Task Force investigation conducted by the Federal Bureau of Investigation together with the Internal Revenue Service-Criminal Investigations, United States Citizenship and Immigration Services, United States Army Intelligence, Austin Police Department, Round Rock Police Department, Killeen Police Department, University of Texas Police Department, Travis County Sheriff’s Office, Texas Department of Public Safety, Office of the Texas Attorney General and the Texas Alcoholic Beverage Commission.
Assistant United States Attorneys Gregg N. Sofer and Michael Galdo, together with Department of Justice
National Security Division trial attorneys Josh Parecki and Michael Dittoe, are prosecuting this case on behalf of the government.An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Rosebud Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on June 30, 2014, by U.S. District Judge Roberto A. Lange.
Phillip Little Hoop, age 32, was sentenced to 10 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Little Hoop was indicted for Failure to Register as a Sex Offender by a federal grand jury on January 15, 2014. He pled guilty to the charge on April 1, 2014.
The conviction relates to a period of time between September 1, 2013, and January 24, 2014, when Little Hoop, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under federal law, failed to update his registration.
This case was investigated by U.S. Marshals Service and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers prosecuted the case.
Little Hoop was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Misprision of A FelonyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of Misprision of a Felony was sentenced on June 30, 2014, by U.S. District Judge Roberto A. Lange.
Albert Kelly, II, age 51, was sentenced to 5 months of home confinement, 7 months of supervised release, a $500 fine, and a $100 special assessment to the Federal Crime Victims Fund.
Kelly was indicted for First Degree Burglary and Assault with a Dangerous Weapon by a federal grand jury on July 17, 2013. He pled guilty to Misprision of a Felony on April 1, 2014.
On May 10, 2013, Kelly and his co-defendant went to the victim’s home in Lower Swift Bear on the Rosebud reservation. Kelly’s co-defendant entered the victim’s home and assaulted the victim while Kelly remained outside. After the assault, Kelly concealed the assault from tribal and federal law enforcement officers.
This case was investigated by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers prosecuted the case.
Kelly was released to home confinement.
Philadelphia Man Allegedly Accessed A University Employee's Bank Account to Pay His Own TuitionRead the Press Release
Jorry Senestant, 22, of Philadelphia, was charged today by Information1 with unauthorized access to a computer in furtherance of committing wire fraud, announced United States Attorney Zane David Memeger.
The Information alleges that on approximately November 23, 2013, Senestant made an unauthorized access into the computer file with the employee account of an employee of a local university. In doing so, Senestant took the employee’s bank account number and bank routing number. Senestant then later used that stolen bank information to cause an electronic transfer of $13,000 from the employee’s bank account to Senestant’s account at the university for the purpose of paying Senestant’s tuition at the university for the next term. This all occurred without the knowledge or permission of the university or the university employee.
If convicted the defendant faces a maximum possible sentence of five years in prison, a $250,000 fine, up to three years of supervised release, restitution, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation, and the university cooperated in the investigation. This case is being prosecuted by Assistant United States Attorney Albert S. Glenn.Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Pen Yan Man Pleads Guilty to Attempting to Obtain Money from Bank by ExtortionRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Jonathan A. Karcher, 21, of Penn Yan, N.Y., pleaded guilty to attempting to extort money from the Lyons National Bank in Penn Yan before U.S. District Judge David G. Larimer. The charge carries a maximum penalty of 20 years in prison and a fine of $250,000.
Assistant U.S. Attorney Everardo A. Rodriguez, who is handling the case, stated that on June 5, 2013, an individual called the manager of Lyons National Bank and demanded that the manager take $15,000 in cash and leave it by a dumpster behind the Rite Aid store across the street from the bank. During that conversation, the individual threatened the bank manager by informing her that he had information about the manager’s residence and children. The same date, an individual drove to the area of Lyons National Bank and parked in the Rite Aid parking lot across the street. An individual later walked by the dumpster behind the store to determine if the $15,000 had been left there as he had directed the branch manager to do.
Subsequent investigation by the FBI and Penn Yan Police Department determined the individual was Jonathan Karcher. Investigators tracked the defendant down through the analysis of records tied to the cellular telephone used in the call to the bank.
Sentencing is scheduled for September 23, 2014 at 11:00 a.m. before Judge Larimer.
The plea is the culmination of a joint investigation on the part of the Penn Yan Police Department, under the direction of Chief Mark Hulse, and the Federal Bureau of Investigation.Owner of Former Danville Business Charged with Defrauding U.S. Energy GrantRead the Press Release
Springfield, Ill. – A federal grand jury today returned an indictment charging Joseph Samuel Kozicki, owner of AA Solar, Inc., in Danville, Ill., with grant fraud. Kozicki, 78, of Choctaw, Okla., will be issued a summons to appear in federal court in Urbana for arraignment on a date to be determined by the U.S. Clerk of the Court.
According to the indictment, Kozicki, chief executive officer of AA Solar, Inc., in Danville, applied for and received a U.S. Department of Energy grant in March 2010, in the amount of $1,776,268. The grant program was funded by the American Recovery and Reinvestment Act of 2009, and was administered in Illinois by the Department of Commerce and Economic Opportunity (DCEO.)
AA Solar applied for the grant funds, according to the indictment, to purchase and install capital equipment for a manufacturing facility at 1303 East Voorhees, in Danville, to make solar tracking systems for ground-based, roof-mounted, and mobile and street light applications. The grant also required a cash match of $1,985,000 from AA Solar.
The indictment alleges that AA Solar submitted false documentation to DCEO; used some of the grant money for other purposes, including for Kozicki’s personal benefit; and attempted to avoid detection of his scheme by law enforcement authorities. Further, Kozicki failed to provide the required cash match. Despite more than $1.5 million in grant money provided to AA Solar, the indictment alleges AA Solar failed to establish a production line to produce solar tracking systems and sold very few solar tracking systems. As a result of the alleged scheme, Kozicki fraudulently attempted to obtain more than $640,000 from the grant and did obtain more than $380,000 from the grant.
As part of the alleged scheme, certain invoices submitted to DCEO were valid; however, when AA Solar received the grant money, it failed to pay the vendors. At other times, the same invoice was submitted to DCEO on multiple occasions. Kozicki also allegedly obtained vendor quotes without incurring the actual expense, but fraudulently represented to DCEO that AA Solar had incurred the expense. Further, Kozicki allegedly caused the creation of false invoices he submitted to DCEO. For example, a $50,000 loan for AA Solar from TSURT, an investment company in the Chicago area, was represented to DCEO as approximately $30,000 of engineering consulting by TSURT for AA Solar.TSURT is not an engineering or consulting firm and did not provide consulting service to AA Solar.
The investigation was conducted by the U.S. Department of Energy Office of Inspector General and the Federal Bureau of Investigation, in cooperation with the Illinois Department of Commerce and Economic Opportunity. The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller.
If convicted, the offense of major fraud against the United States carries a maximum statutory penalty of 10 years in prison and fines of up to $1,000,000.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
News ReleaseRead the Press Release
Joseph Villante, age 47, of Philadelphia, Pennsylvania, was charged today by information with bank bribery, announced United States Attorney Zane David Memeger. The information charges that from approximately January through June 2006, Villante, a vice president and relationship manager at Republic First Bank, solicited approximately $110,000 from a bank customer as a reward for assisting the customer in obtaining two loans from the bank.
UNITED STATES ATTORNEY'S OFFICE
If convicted the defendant faces a maximum possible sentence of 30 years in prison, a fine of $1,000,000, five years of supervised release, and a $100 special assessment. The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Judy G. Smith.
EASTERN DISTRICT, PENNSYLVANIA
615 Chestnut Street
Suite 1250,
Philadelphia, PA 19106Contact: PATTY HARTMAN
Media Contact: 215-861-8525
Click here to view the indictment
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.COPIES OF NEWS MEMOS AND RELATED DOCUMENTS CAN ALSO BE FOUND AT http://www.justice.gov/usao/pae
Mentor Business Owner Indicted for Defrauding Investors Out of More Than $1 MillionRead the Press Release
A 17-count indictment was filed charging a Mentor man who owned and operated several granite businesses with defrauding investors out of more than $1 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge of the Internal Revenue Service’s Cincinnati Field Office.
Carmen Occhipinti, 66, was arrested today. He was indicted on four counts of wire fraud, seven counts of bank fraud, one count of witness tampering, three counts of tax evasion and two counts of money laundering.
“This defendant purported to sell granite, but he really built a financial house of cards by stealing more than $1 million from others,” Dettelbach said. "His victims were real people, some of whom were forced into bankruptcy. We're committed to pursuing justice on their behalf."
“The IRS enforces the nation’s tax laws, but also takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others,” Enstrom said. “Individuals who create elaborate schemes that have no purpose other than to deceive friends, church parishioners, business associates and defraud the IRS run the very high risk of prosecution.”
Occhipinti maintained offices in Mentor and Woodmere. He operated several companies, including Marble Tiles of Italy, Marble and Tile Company of Italy, Brunello Marble & Granite, Carrara Bricks & Blocks Company, Granite and Tile Imports, Bella Cucina Granite and Portofino Marble Tile, according to the indictment.
From 2006 through April 2014, Occhipinti defrauded investors by inducing them to invest in his granite businesses through false and fraudulent misrepresentations and omissions of material facts about the nature and dispositions of the investments. Occhipinti misled investors to believe that their funds would be used to purchase materials for jobs, when, in fact, he used the investments to enrich himself, to pay off certain earlier investors at his discretion and to pay his personal expenses such as those incurred and Peak and Peak Resort, Mountaineer Casino and Lee Jewelers, according to the indictment.
During the course of the scheme, Occhipinti misused investor money, while continuing to solicit new investors and to lead the investors to believe a return on their investments was forthcoming. Although some investors received a fractional return of their investments, the defrauded investors incurred a combined out-of-pocket loss of more than $1 million, according to the indictment.
Because of Occhipinti’s fraudulent scheme, several investors were required to declare bankruptcy, according to the indictment.
Occhipinti used religious organizations, business relationships, social organizations and other means to establish trust and find prospective investors. He claimed his companies imported materials from Italy, Brazil and Canada when in truth his companies did not import materials, according to the indictment.
The indictment was presented by AUSA Christos N. Georgalis after an investigation by agents of the Internal Revenue Service – Criminal Investigations and inspectors with the United States Postal Service.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to the case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Mastermind of Cuban Smuggling Organization Sentenced to 20 Years in PrisonRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Rear Admiral John H. Korn, Commander, 7th Coast Guard District (USCG), announce that Antonio Comin, 56, of Miami-Dade County, was sentenced to 20 years in prison by U.S. District Judge Jose E. Martinez for one count of conspiracy, 50 counts of encouraging and inducing aliens to enter the United States, 47 counts of alien smuggling for private financial gain, and one count of bringing an aggravated felon into the United States.
The evidence at trial revealed that Comin was the mastermind of an extensive organization that conspired to smuggle Cuban nationals into the United States for profit. In January 2012, the organization successfully landed 29 Cuban nationals on Big Munson Island in the Florida Keys following a high speed chase with the United States Coast Guard, and a conscious decision by the smugglers to run their vessel aground instead of being captured at sea. Of the 29 Cuban nationals landed that day, one, Rogelio Martin-Hernandez, had been previously deported back to Cuba after serving 264 months for cocaine trafficking. In September 2012, another smuggling venture was attempted; however, the vessel used ran out of gas near Cay Sal Bank, Bahamas. An attempt by Comin and his organization to save that trip was thwarted when a second vessel, carrying additional gas, broke down less than two miles from the smuggling vessel. The occupants of both vessels, including four co-defendants of Comin and 21 Cuban nationals, were rescued by the United States Coast Guard Cutter Oak.
Seven co-defendants in the instant case, all from Miami-Dade County, have thus far been sentenced for their participation in these events:
Daniel Rochela, 42, was sentenced to 100 months in prison;
Arial Arias, 43, and Oylver Aguilar, 40, were sentenced to 60 months in prison;
Severo Tapanes, 42, was sentenced to 40 months in prison;
Rogelio Martin-Hernandez, 73, and Alexander Aznay-Gonzalez, 23, were sentenced to 24 months in prison;
Oreste Chavez Torres, 23, was sentenced to 18 months in prison.
An eighth co-defendant, Jose Valdes Diaz, 37, will be sentenced on July 17th in Miami.
Mr. Ferrer commended the investigative efforts of ICE-HSI and the USCG. This case was prosecuted by Special Assistant U.S. Attorney Kelly Blackburn and Assistant U.S. Attorney Jaime Raich.
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.
Mason Man Sentenced to 120 MonthsRead the Press Release
Memphis, TN – Fred Masters, Jr., age 48, of Mason, Tenn., was sentenced to 120 months in federal prison following his guilty plea to one count of possessing equipment, chemicals, products, and materials that may be used to manufacture methamphetamine, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.
According to the facts alleged in the indictment and revealed during the sentencing hearing, on March 3, 2012, Tipton County Sheriff’s Office Deputies and a canine officer went to Masters’s home to execute a search warrant. When the officers arrived, Masters released his pit bull to attack the officers as Masters fled into the woods. The officers searched Masters’s home and found several chemical components consistent with the manufacture of methamphetamine. Officers also found methamphetamine on a table in the bedroom next to Masters’s Tennessee ID. Masters was apprehended a week later by law enforcement officials.
In addition to the prison sentence, United States District Judge Jon P. McCalla ordered Masters to serve three years of supervised release. There is no parole in the federal prison system.
This case was investigated by the Tipton County Sheriff’s Office and the 25th District Attorney General’s Office. Special Assistant U.S. Attorney Samuel R. Stringfellow represented the government.Mason Man Sentenced to 120 MonthsRead the Press Release
Memphis, TN – Fred Masters, Jr., age 48, of Mason, Tenn., was sentenced to 120 months in federal prison following his guilty plea to one count of possessing equipment, chemicals, products, and materials that may be used to manufacture methamphetamine, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.
According to the facts alleged in the indictment and revealed during the sentencing hearing, on March 3, 2012, Tipton County Sheriff’s Office Deputies and a canine officer went to Masters’s home to execute a search warrant. When the officers arrived, Masters released his pit bull to attack the officers as Masters fled into the woods. The officers searched Masters’s home and found several chemical components consistent with the manufacture of methamphetamine. Officers also found methamphetamine on a table in the bedroom next to Masters’s Tennessee ID. Masters was apprehended a week later by law enforcement officials.
In addition to the prison sentence, United States District Judge Jon P. McCalla ordered Masters to serve three years of supervised release. There is no parole in the federal prison system.
This case was investigated by the Tipton County Sheriff’s Office and the 25th District Attorney General’s Office. Special Assistant U.S. Attorney Samuel R. Stringfellow represented the government.Manhattan U.S. Attorney Announces Charges Against Three Leaders of Peruvian Terrorist Organization Shining PathRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Michele M. Leonhart, Administrator of the U.S. Drug Enforcement Administration (“DEA”), announced terrorism, narcotics, and weapons charges against FLORINDO ELEUTERIO FLORES-HALA, a/k/a “Comrade Artemio,” VICTOR QUISPE-PALOMINO, a/k/a “Comrade José,” and JORGE QUISPE-PALOMINO, a/k/a “Raul.” As set forth in the Indictment, FLORES-HALA, VICTOR QUISPE-PALOMINO, and JORGE QUISPE-PALOMINO are leaders of the Peruvian-based terrorist organization Sendero Luminoso, or “Shining Path,” which has engaged in cocaine-trafficking and terrorist acts against Peruvian civilians and military, including bombings and massacres, since approximately 1980. FLORES-HALA is in the custody of Peruvian law enforcement. VICTOR QUISPE-PALOMINO and JORGE QUISPE-PALOMINO remain at large. The three are accused of facilitating international narcotics trafficking in order to provide support for the terrorist organization. The case has been assigned to United States District Judge Richard J. Sullivan.
U.S. Attorney Preet Bharara stated: “As alleged, these defendants are leaders of a murderous paramilitary organization, and they themselves ordered ambushes that killed nearly two dozen Peruvian soldiers and police officers. The product of the Peruvian cocaine trade they plied and protected sometimes ends up for sale in the United States. Such a path is anything but shining; it is the path to prison.”
DEA Administrator Michele M. Leonhart stated: “For decades, the Shining Path has fueled terror, addiction and instability across the globe using the proceeds of their drug trafficking. This investigation and our ongoing global efforts reflect DEA’s unwavering commitment to protecting our citizens from these violent and brutal narco-terror organizations. The DEA, along with our outstanding Peruvian law enforcement counterparts, will continue to attack this terrorist organization until they are completely dismantled.”
According to the Indictment:
For more than 30 years, the Shining Path has been an international terrorist group ostensibly committed to Maoist ideals and dedicated to the violent overthrow of the democratically elected Government of Peru. Initially founded and conceived as a political movement and an outgrowth of the Peruvian Communist Party, the Shining Path became a terrorist army engaged in bombings, massacres, and other acts of violence within Peru. The Shining Path has been designated by the United States Secretary of State as a foreign terrorist organization since the designation was first established in U.S. law in October 1997, and has remained on the list of designees ever since.
The Shining Path is styled as a military organization whose armed combatants in recent years have been concentrated in two geographically distinct factions in South Central Peru: the Upper Huallaga Valley (the “UHV”) and the territory bounded by the Apurimac and Ene River Valleys (the “VRAE”). The UHV and VRAE factions have in the recent past been led, respectively, by FLORES-HALA and VICTOR QUISPE-PALOMINO. Within each of the UHV and VRAE factions, the Shining Path’s members are divided into armed columns. JORGE QUISPE-PALOMINO has served as a column leader in the VRAE faction of the Shining Path.
The Shining Path funds its terrorist activities, at least in part, with proceeds from the cocaine trade. For approximately the past decade, the Shining Path has sought to control all aspects of the cocaine trade in the UHV and the VRAE, which contain some of the world’s most fertile coca leaf producing areas. In addition to cultivating and processing its own cocaine for sale, the Shining Path levies a system of taxes called “cupos” on the cultivation, processing, and transit of cocaine in and through the UHV and the VRAE. The Shining Path also provides transport and armed security to drug trafficking organizations moving large loads of cocaine through and out of the VRAE and the UHV. FLORES-HALA, VICTOR QUISPE-PALOMINO, and JORGE QUISPE-PALOMINO knew and understood that at least some of the cocaine the Shining Path grew, taxed, and transported was destined eventually to be sold in the United States.
For at least the past 10 years, the Shining Path has directed violent acts against Peruvian National Police (“PNP”) and Peruvian Army installations and personnel, and has conducted numerous violent attacks on counter-narcotics patrols, killing scores of soldiers and policemen. These acts of violence were intended to protect the Shining Path’s financial interests in the cocaine trade, to serve as reprisal for law enforcement efforts to eradicate illegal cocaine trafficking, and to arm itself by forcefully taking weapons from dead and wounded targets of its violent ambushes.
In Count One of the Indictment, FLORES-HALA, 52, VICTOR QUISPE-PALOMINO, 54, and JORGE QUISPE-PALOMINO, 56, all Peruvian citizens, are charged with conspiring to provide material support to a foreign terrorist organization, specifically, the Shining Path.
In Count Two, FLORES-HALA, VICTOR QUISPE-PALOMINO, and JORGE QUISPE-PALOMINO are charged with conspiring to distribute cocaine with the intent to support terrorist activity.
In Count Three, FLORES-HALA is charged with aiding and abetting the discharge of firearms during and in relation to the terrorism offense charged in Count One. Specifically, Count Three charges that, on December 22, 2005, in Aucayacu, Peru, FLORES-HALA directed Shining Path members to fire automatic weapons at a passing PNP convoy, resulting in the killing of eight PNP officers.
In Count Four, VICTOR QUISPE-PALOMINO, and JORGE QUISPE-PALOMINO are charged with aiding and abetting the discharge of firearms during and in relation to the terrorism offense charged in Count One. Specifically, Count Four charges that, on April 9, 2009, in Ayacucho, Peru, VICTOR QUISPE-PALOMINO and JORGE QUISPE-PALOMINO ordered and planned an ambush in which a group of Shining Path members, armed with assault rifles, detonated a series of mines on a road where a Peruvian Army patrol was passing, and followed with gunfire, killing 15 soldiers, wounding more than a dozen, and seizing 13 assault rifles.
Count One carries a maximum term of life in prison and a maximum fine of $250,000. Count Two carries a maximum term of life in prison, a mandatory minimum term of 20 years in prison, and a maximum fine of $250,000. Counts Three and Four each carry a maximum term of life in prison, a mandatory minimum term of 10 years in prison, and a maximum fine of $250,000. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the Judge.
These historic charges are the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York and the DEA, including the DEA’s Lima Country Office and Special Operations Division. The United States Government also worked closely with Peruvian Government authorities – the Peruvian National Police, the combined Peruvian armed forces and the Peruvian National Prosecutors Office; this Indictment would not have been possible without their ongoing cooperation and assistance. Mr. Bharara also thanked the U.S. Department of Justice’s Office of International Affairs and National Security Division, the United States Department of State, and the United States Department of Defense for their ongoing assistance.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorney Michael Ferrara is in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Flores-Hala et al., Shining Path Indictment
Man Sentenced for Assaulting Security Guard at Social Security Administration OfficeRead the Press Release
A man who forcibly assaulted a security guard at the Social Security Administration Office in Cedar Rapids, Iowa, was sentenced on July 1, 2014, to more than two years in federal prison.
Howard Lamont Coakley, age 30, from Cedar Rapids, Iowa, received the prison term after a May 7, 2014, guilty plea to assaulting a person engaged in official federal duties.
At the guilty plea hearing, Coakley admitted that, on January 14, 2014, he forcibly assaulted a security guard who was working for the Social Security Administration in Cedar Rapids. Coakley further admitted his assault caused bodily injury to the security guard.
Coakley was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Coakley was sentenced to 30 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Coakley is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Federal Protective Service.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-00017.
Lower Brule Man Sentenced for Assault of A Spouse and A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man convicted of Assault Resulting in Substantial Bodily Injury to a Spouse and Intimate Partner and Assault of a Minor Under the Age of 16 was sentenced on July 1, 2014, by U.S. District Judge Roberto A. Lange.
Glenn Tisdall, age 48, was sentenced to 15 months of custody on the Assault Resulting in Substantial Bodily Injury charge, and 12 months of custody on the Assault of a Minor charge. The sentences are to run concurrently. Tisdall was also sentenced to 2 years of supervised release and a $125 special assessment to the Federal Crime Victims Fund.
Tisdall was indicted by a federal grand jury on January 15, 2014. He pled guilty on April 10, 2014.
The conviction stems from an incident on October 24, 2013, when Tisdall got upset with his spouse. He grabbed her by the hair and began slapping her in the face. The juvenile victim came out of his bedroom to assist his mother. Tisdall grabbed the juvenile’s shirt and then his jaw, and pushed him against the bathroom door frame.
Tisdall became increasingly angry. He grabbed his wife by both her ears, pinned her on the couch, and head butted her in the forehead and face. Tisdall also pulled a multi-tool from his pocket and held it under her chin threatening her.
In an attempt to again protect his mother, the juvenile male grabbed Tisdall around the waist and tried to pull him off of his mother. Tisdall then turned to the young male, grabbed him around the neck with both hands and dug his nails into his neck while squeezing. Eventually, Tisdall released him and the two victims were able to get away.
This case was investigated by the Bureau of Indian Affairs, Lower Brule Law Enforcement Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Tisdall was immediately turned over to the custody of the U.S. Marshals Service.
Louisiana Man Pleads Guilty to Racially-Motivated Assault on Hurricane Relief WorkersRead the Press Release
Josh Jambon, 52, a resident of Grand Isle, Louisiana, pleaded guilty today in front of U.S. District Judge Susie Morgan to two counts of federal civil rights violations, announced Acting Assistant Attorney General Jocelyn Samuels for the Justice Department’s Civil Rights Division and U.S. Attorney Kenneth Allen Polite Jr. for the Eastern District of Louisiana.
In connection with his plea, Jambon admitted that he assaulted two female African-American Hurricane Isaac relief workers because of their race and because of their employment status. On Sept. 18, 2012, in Grand Isle, Jambon approached a work crew tasked with cleaning up debris from Hurricane Isaac. During an interaction with the work crew, Jambon used racial slurs against two female African-American crew members, M.R. and N.S. Jambon then approached N.S. and hit her in the face, because of her race and because of her employment with the work crew, then proceeded to assault M.R. in the same manner. When Jambon saw a third crew member, B.W., filming the incident on her cell phone, Jambon initiated a physical struggle with B.W. in an attempt to take her cell phone so that he could delete the video.
“Hate-fueled violence has no place in a civilized society,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department is committed to using all the tools in our law enforcement arsenal to prosecute acts motivated by racial bias.”
“By holding Mr. Jambon accountable for his racially-motivated criminal conduct, our office once again demonstrates its commitment to protecting the civil rights of all residents in Southeast Louisiana,” said U.S. Attorney Kenneth Allen Polite Jr. for the Eastern District of Louisiana.
For each count, Jambon faces a statutory maximum penalty of one year in prison, up to one year of supervised release, a $100,000 fine and a $25 special assessment.
The case is being investigated by special agents of the FBI.
The case is being prosecuted by Trial Attorney Risa Berkower of the Civil Rights Division and Assistant U.S. Attorney Matt Chester for the Eastern District of Louisiana.
Lookout in Armed Bank Robbery Sentenced to More Than 7 Years in PrisonRead the Press Release
OAKLAND – Kevin Tyrone Buford was sentenced today to 90 months in prison for planning and participating in the March 1, 2013 takeover style armed bank robbery of the Mechanics Bank on Pinole Valley Road, in Pinole, Calif., announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
Buford pleaded guilty on Jan. 22, 2014, without entering into a plea agreement with the government. During the plea hearing, Buford admitted that on March 1, 2013, he served as the lookout during the robbery, communicating by cell phone with the gunman, Gary Casdell Fite II, and the getaway driver, Regina Dean, who stole more than $3,000 from the bank. Buford also admitted that he cased the bank on Feb. 26, 2013, three days before the robbery.
Buford, 27, of Vallejo, Calif., was indicted by a federal grand jury on Aug. 29, 2013, for aiding and abetting armed bank robbery, in violation of 18 U.S.C. § 2113(a) and (d). Buford was not arrested immediately following the robbery. He was identified and charged after additional investigation by the FBI, including a tip by alert bank employees who remembered a man entering the bank and behaving suspiciously just days before the robbery. The FBI obtained Buford’s cell phone records, which placed him within the vicinity of the bank during the robbery and casing, and revealed frequent communications between the three-person robbery crew leading up to the bank robbery. Buford’s casing of the bank was also captured by video surveillance.
The sentence was handed down by the Honorable Phyllis J. Hamilton, United States District Court Judge. Judge Hamilton also sentenced Buford to a 5-year period of supervised release. Gunman Fite was sentenced to 10 years in prison on Sept. 4, 2013. Getaway driver Dean was sentenced to 5 years in prison on Aug. 21, 2013.
Brian C. Lewis is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is the result of an investigation by the FBI.
(Buford indictment )
Las Vegas, Nev. Montessori School Employee Charged with Federal Child Pornography CrimesRead the Press Release
LAS VEGAS, Nev. – A man who is employed at the Spring Valley Montessori School in Las Vegas appeared in federal court this afternoon on charges that he received and possessed child pornography, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
John-Benedict Galang Alcantara, 24, is charged in a criminal complaint with one count of receipt of child pornography and one count of possession of child pornography. Alcantara self-surrendered to federal authorities this morning, and had an initial appearance hearing at 3:00 p.m. before U.S. Magistrate Judge Cam Ferenbach, and was released on bond with special conditions. If convicted, Alcantara faces a minimum of five years and a maximum of 20 years in prison on the receipt charge and a maximum of 10 years in prison on the possession charge, as well as fines of up to $250,000 on each count.According to the criminal complaint, in April 2014, a Las Vegas Metropolitan Police Department detective assigned to the FBI’s Child Exploitation Task Force determined that child pornography images and videos were being shared online through an internet address traced to Alcantara’s residence in Las Vegas. One of the videos depicted a prepubescent female child having sex with an adult male. On June 29, 2014, a state court search warrant was executed at the residence and law enforcement authorities found cartoon images of child erotica hanging on the walls in the bedroom occupied by Alcantara. Law enforcement authorities seized several computers and related devices from the home containing numerous images of child pornography. Another search warrant was executed at the Montessori School where the defendant works in the area of computer support, and law enforcement authorities seized four more computers which were allegedly under Alcantara’s control. Authorities determined that efforts had been made to erase the hard drives of these computers; however, remnants of child pornography files were found on a least one of them.
The case is being investigated by the FBI and Las Vegas Metropolitan Police Department, and is being prosecuted by Special Assistant United States Attorney Allison Herr.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal
The public is reminded that a criminal complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project
Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Kansas City, Kan., Man Indicted on Charge of Robbing Credit Union in LawrenceRead the Press Release
TOPEKA, KAN. – A man from Kansas City, Kan., has been indicted on federal charges of robbing a credit union in Lawrence, U.S. Attorney Barry Grissom said today.
Antonio P. Gaitan, 35, who is currently in federal custody, is charged with one count of bank robbery. The indictment alleges that on April 5, 2014, he robbed Truity Credit Union, 3400 West 6th Street in Lawrence, Kan.If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The FBI and the Lawrence Police Department investigated. Assistant U.S. Attorney Mike Warner is prosecuting.
OTHER INDICTMENTS
Darrian Michael Stewart, 20, currently in the Shawnee County Jail, is charged with two counts of robbery. The indictment alleges that on June 20, 2014, he robbed a BP gas station at 1401 S.W. Huntoon in Topeka, Kan. The indictment also alleges that on June 11, 2014, he robbed Cali Smoke Stop and Gas at 2701 S.E. California Avenue in Topeka.If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count. The FBI and the Topeka Police Department investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
Shu-Ying Sun, 44, who has been living in Overland Park, Kan., and Mark Andrew Garlock, 49, Overland Park, Kan., are charged in a superseding indictment with one count of conspiracy to commit marriage fraud and one count of making a false statement on a passport application. The crimes are alleged to have taken place from 2005 to 2009 in Douglas County, Kan.
The indictment alleges that Sun, who is a foreign national, entered into a marriage contract with Garlock for the purpose of evading immigration laws. She had the assistance of Quong Bow Low, who offered to assist aliens in the pursuit of lawful status. He charged fees for services such as coaching defendants on how to answer questions during immigration interviews so officials would believe the couple had entered into a valid marriage.
Low pleaded guilty to one count of conspiracy to commit marriage fraud and is set for sentencing Aug. 14.
If convicted, Sun and Garlock face a maximum penalty of five years in federal prison and a fine up to $250,000 on the conspiracy count, and a maximum of 10 years and a fine up to $250,000 on the other count. The Department of Homeland Security investigated. Assistant U.S. Attorney Christine Kenney is prosecuting.
Nestor D. Duenas-Vasquez, 26, Glenpool, Okla., and Kyndal N. Upson, 24, Owasso, Okla., are charged with one count of possession with intent to distribute more than a pound of heroin. The crime is alleged to have occurred June 26, 2014, in Sedgwick County, Kan.
They initially were charged in a criminal complaint filed June 30, 2014. It is alleged Wichita police discovered the heroin when they stopped the two for a traffic violation June 26 near I-135 and 21st street.
If convicted, they face a penalty of not less than five years and not more than 40 years in federal prison and a fine up to $250,000. The Wichita Police Department and the Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Ronnie Davone Matthews, 20, who is in custody in the Shawnee County Jail, is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Feb. 6, 2014, in Shawnee County, Kan.If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
Nolberto Medina-Campos, 36, Kansas City, Kan., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred June 18, 2014, in Wyandotte County, Kan.
If convicted, he faces a penalty of not less than 10 years and a fine up to $10 million. Homeland Security Investigations investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
Daniel Floyd Jenkins, 20, is charged with failing to register as required by the Sex Offender Registration and Notification Act. The crime is alleged to have occurred starting in April 2014 in Shawnee County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Topeka Police Department and the U.S. Marshals Service investigated. Assistant U.S. Attorney Christine Kenney is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Johnstown Woman Conspired with Others to Distribute Crack CocaineRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of conspiracy to distribute cocaine base, in the form commonly known as "crack," United States Attorney David J. Hickton announced today.
Paulette M. Alt, 52, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that from Jan. 31, to April 23, 2013, Alt conspired with her co-defendants to distribute less than 28 grams of cocaine base.
Judge Gibson scheduled sentencing for Dec. 15, 2014, at 11 a.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Alt.
International Employee Recruiter Sentenced to Two Years in Prison for Visa FraudRead the Press Release
Defendant Claimed 789 Workers Hired for Maryland Pool Service Company
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Milen Radomirski, age 34, a Bulgarian national residing in Germantown, Maryland, today to two years in prison for visa fraud. Judge Grimm also ordered Radomirski to forfeit $100,000.“American businesses are permitted to sponsor foreign workers to enter the United States lawfully under the H-2B visa program, but Milen Radomirski undermined that program by falsely vouching for hundreds of aliens who were not expected to comply with the terms of the visa,” said U.S. Attorney Rod J. Rosenstein.
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); Special Agent in Charge Bill Jones, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; Special Agent in Charge Niall Meehan of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service; and District Director Gregory Collett of the U.S. Citizenship and Immigration Services (USCIS) Baltimore District Office.
According to his plea agreement, from 2003 to August 2013, Radomirski worked for a pool service company in Maryland that provided lifeguards and pool maintenance in the Washington, D.C. metropolitan area. As part of his employment, Radomirski recruited international workers that his company could sponsor to work in the U.S. on H-2B visas and other short-term visas. Radomirski admitted that he fraudulently obtained more than 100 H-2B visas. An H-2B visa is a non-immigrant visa granted to citizens of other countries to work in the U.S. on a temporary basis.From 2006 through 2011, Radomirski’s company submitted applications for approximately 789 H-2B visas. Radomirski’s company certified to the U.S. Department of Labor that it had not sought or received payment from the employee to obtain the visa and specified to U.S. Citizenship and Immigration Services the job in which the foreign national supposedly would be employed. Sponsored workers could not legally be employed by any other company. The company was required to notify DHS if an H-2B worker failed to report to work within five days after their specified start date or if a worker absconded or was terminated.
Radomirski admitted that he charged visa beneficiaries money in exchange for including them on his company’s petitions for H-2B visas. Radomirski knew that many of the visa beneficiaries would not work for his company at all, would only work at his company for a short period of time, or would work for other employers in addition to his company.
United States Attorney Rod J. Rosenstein praised the HSI Baltimore; U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, U.S. Department of State’s Diplomatic Security Service, and USCIS, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Thomas P. Windom, who prosecuted the case.
Harrison County Resident Sentenced to Nine Years Imprisonment on Federal Charge of Possession with Intent to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA - On July 1, 2014, Arthur J. Hulett, a 52 year-old resident of Missouri Valley, Iowa, was sentenced by United States District Court Judge John Jarvey to 108 months in prison, and six years of supervised release following the period of imprisonment, on the charge of possession with intent to distribute methamphetamine, announced United States Attorney Nicholas A. Klinefeldt.
On February 6, 2014, the defendant pleaded guilty to the charge, which was the result of an investigation conducted by law enforcement into the distribution of methamphetamine in and around Harrison County, Iowa. The investigation revealed that methamphetamine was being distributed by the defendant and susequently transported from Harrison County, Iowa, into counties in Western Iowa and Eastern Nebraska.
The investigation was conducted by the Missouri Valley, Iowa, Police Department, Harrison County, Iowa, Sheriff’s Office, Iowa State Patrol, Burt County, Nebraska, Sheriff’s Office, Iowa Division of Narcotics Enforcement, and the United States Marshal’s Service. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Hales Corners Certified Public Accountant Indicted for Tax Fraud ConspiracyRead the Press Release
James L. Santelle, the United States Attorney for the Eastern District of Wisconsin, announced that a federal grand jury has indicted John C. Noggle, on three-felony counts relating to the misuse of welfare benefit plans under Section 419A(f)(6) of the Internal Revenue Code. Noggle is accused of using the welfare benefit plans to conceal his clients’ basis in life insurance and annuities, which resulted in the underreporting of income. Specifically, the grand jury charged Noggle with conspiring to defraud the United States in violation of 18 U.S.C. § 371, and for filing false income tax returns in violation of 26 U.S.C. § 7206(2). The case was investigated by agents from the Internal Revenue Service-Criminal Investigation (“IRS-CI”).
“Those who misuse welfare benefit plans by running their compensation through layers of complicated trusts and insurance policies will be vigorously investigated by federal law enforcement,” said Kelly R. Jackson, Special Agent in Charge of the IRS Criminal Investigation office in Milwaukee. Special Agent in Charge Jackson added “We encourage anyone with information about these types of schemes to come forward and speak with federal authorities.”It should be noted that an indictment is merely the formal method of charging an individual and does not constitute inference of his guilt. An individual is presumed innocent until such time, if ever, that the government establishes his guilt beyond a reasonable doubt.
Grand Isle Man, Josh Jambon, Pleads Guilty to Racially-motivated Assault on Hurricane Relief WorkersRead the Press Release
Josh Jambon, 52, a resident of Grand Isle, Louisiana, pleaded guilty today in front of U.S. District Judge Susie Morgan to two counts of federal civil rights violations, announced Acting Assistant Attorney General Jocelyn Samuels for the Justice Department’s Civil Rights Division and U.S. Attorney Kenneth Allen Polite Jr. for the Eastern District of Louisiana.
In connection with his plea, Jambon admitted that he assaulted two female African-American Hurricane Isaac relief workers because of their race and because of their employment status. On Sept. 18, 2012, in Grand Isle, Jambon approached a work crew tasked with cleaning up debris from Hurricane Isaac. During an interaction with the work crew, Jambon used racial slurs against two female African-American crew members, M.R. and N.S. Jambon then approached N.S. and hit her in the face, because of her race and because of her employment with the work crew, then proceeded to assault M.R. in the same manner. When Jambon saw a third crew member, B.W., filming the incident on her cell phone, Jambon initiated a physical struggle with B.W. in an attempt to take her cell phone so that he could delete the video.
“Hate-fueled violence has no place in a civilized society,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department is committed to using all the tools in our law enforcement arsenal to prosecute acts motivated by racial bias.”
“By holding Mr. Jambon accountable for his racially-motivated criminal conduct, our office once again demonstrates its commitment to protecting the civil rights of all residents in Southeast Louisiana,” said U.S. Attorney Kenneth Allen Polite Jr. for the Eastern District of Louisiana.
For each count, Jambon faces a statutory maximum penalty of one year in prison, up to one year of supervised release, a $100,000 fine and a $25 special assessment.
The case is being investigated by special agents of the FBI.
The case is being prosecuted by Trial Attorney Risa Berkower of the Civil Rights Division and Assistant U.S. Attorney Matt Chester for the Eastern District of Louisiana.
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Fort Thompson Man Sentenced for Domestic Assault by A Habitual Offender and Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, man convicted of Domestic Assault by a Habitual Offender and Child Abuse was sentenced on June 30, 2014, by U.S. District Judge Roberto A. Lange.
Anthony Comes Flying, a/k/a Anthony Miller, age 29, was sentenced to 33 months of custody for the domestic assault charge, and 33 months of custody for the child abuse charge. The sentences are to be served concurrently. Miller was also sentenced to 2 years of supervised release and a $200 special assessment to the Federal Crime Victims Fund.
Miller was indicted by a federal grand jury on January 15, 2014. He pled guilty on March 24, 2014.
The convictions stem from an incident on January 4, 2014, when law enforcement was summoned to the Defendant’s home after he assaulted his girlfriend and their children. The assault began after the female victim took the babysitter home. When she arrived back home, Miller was not there, and she found their toddler and infant sons, alone and crying. Miller arrived home a short time later. He was upset and began hitting and kicking the victim with his fist and boots on her head and body. Miller also hit the two boys in the body and head. After hitting the victim and their children, Miller retrieved a kitchen knife and threatened to kill them and then himself. The victim kept trying to protect her children and was yelling at Miller to stop.
This case was investigated by the Bureau of Indian Affairs, Crow Creek Law Enforcement Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Miller was immediately turned over to the custody of the U.S. Marshals Service.
Former Kellogg Salesman Pleads Guilty to Wire Fraud ChargesRead the Press Release
RICHMOND, Va. – John Morrell Palmer, III, 55, of Fredericksburg, Virginia, pleaded guilty today to Conspiring to Commit Wire Fraud.
Dana J. Boente, United States Attorney for the Eastern District of Virginia;Colonel W. Steven Flaherty, Virginia State Police Superintendent; Gary Barksdale, Inspector in Charge of the Washington Division of the United States Postal Inspection Service; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after the plea was accepted by United States District Judge M. Hannah Lauck.
Palmer faces a maximum penalty of 20 years in prison when he is sentenced on October 2, 2014, by Senior United States District Judge Robert E. Payne.
In a statement of facts filed with the plea agreement, Palmer admitted that from 2009 through 2013, he conspired with an unindicted co-conspirator, the President of an unnamed grocery retail chain, to submit fraudulent documents to The Kellogg Company and SuperValu, a grocery wholesaler through which Kellogg sold product to retailers. SuperValu awarded the grocery retail chain approximately $1.8 million in deductions against its running account with SuperValu as a result of the fraudulent submissions. Kellogg reimbursed SuperValu for the awarded deductions. The unindicted co-conspirator paid cash to Palmer in the total amount of approximately half the value of the fraudulently obtained deductions.
This case was investigated by the Virginia State Police, the United States Postal Inspection Service, and Federal Bureau of Investigation. Assistant U.S. Attorney Michael C. Moore is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-85.Tweet
Former High School Principal Sentenced to Prison in Child Pornography CaseRead the Press Release
PORTLAND, Ore. – Robert Paul Patton, the former principal at Sherwood High School, was sentenced to more than ten years in prison following his plea of guilty to possession of child pornography. At a sentencing hearing on July 1, 2014, Senior U. S. District Judge Garr M. King sentenced Patton, 45, to 127 months in prison, followed by a ten-year term of supervised release. Patton will be subject to stringent conditions of supervision, including prohibitions on associating with minors, restrictions on where he can live, and restrictions on his use of computers. Patton will also be required to participate in sex offender treatment, and must continue to register as a sex offender.
This is Patton’s fourth criminal conviction. In 2003, he was convicted in Washington County of possessing materials depicting sexually explicit conduct of a child and two counts of third degree sexual abuse, after twice having sexual relations with a 16-year-old boy. In 2011, he was convicted in Multnomah County of failure to register as a sex offender. In 2013, he was convicted in Multnomah County of attempted first degree sexual abuse in connection with an incident involving a 12-year-old boy. During the course of that investigation, detectives from the Portland Police Bureau served a state search warrant at Patton’s Milwaukie residence, and seized computer equipment later found to contain child pornography. After filing and litigating motions to suppress the evidence seized from his residence, Patton pled guilty to possessing child pornography, reserving the right to appeal the denial of his motions.
U.S. Attorney Amanda Marshall praised the sentence imposed on Patton, noting that it reflected the serious nature of Patton’s criminal conduct. “Prior to being caught in possession of child pornography, which lead to the conviction in this case, Robert Patton had a criminal history going back to when he was a high school principal who possessed child pornography and sexually abused a teenage boy,” she said. “Patton’s conduct was particularly concerning, because it suggests an ongoing sexual interest in children that did not abate following his first conviction.” She also hoped that Patton’s sentence “sends a clear message to those who prey on our children.”
Because of his prior Washington County conviction, Patton faced a mandatory minimum sentence of ten years in prison. In imposing the 127-month sentence, Judge King took into account the nature and seriousness of the offense, Patton’s background, history, and characteristics, the need to provide just punishment and adequate deterrence, and the need to protect the public. Judge King noted that Patton served a 24-month sentence in the Multnomah County attempted sex abuse case, and while serving that sentence, made “good use” and “appropriate use” of his time, tutoring other inmates, completing training courses, and participating in various activities. Judge King also noted that Patton had “a great deal of support” from his family. For his part, Patton apologized to his victims, sought forgiveness, and promised to “get help.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the U.S. Department of Justice and led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Beaverton Police Department, the Portland Police Bureau, and the Northwest Regional Computer Forensic Laboratory, and was prosecuted by Assistant U. S. Attorney Gary Sussman, Project Safe Childhood Coordinator for the District of Oregon.
Former Executive Director of Noah, Stacey Jackson, Pleads Guilty to Conspiracy to Steal Government Funds and Solicit Kickbacks from Federally Funded ProgramRead the Press Release
United States Attorney Kenneth Allen Polite, Jr. announced that STACEY JACKSON, age 47, a resident of New Orleans, Louisiana, pleaded guilty today before U.S. District Judge Mary Ann Vial Lemmon to conspiracy to steal federal funds and demand kickbacks from a program receiving federal funds.
According to court documents, JACKSON, the former Executive Director of New Orleans Affordable Homeownership (“NOAH”), a city agency and non-profit corporation, conspired with Earl Myers, Trellis Smith, and others to misuse and personally benefit from federal funds that NOAH had received, in violation of the law. The United States Department of Housing and Urban Development (“HUD”), both before and after Hurricane Katrina, had provided grant money to the City of New Orleans to address blight within the city and to remediate homes damaged by the storm.
JACKSON, as the Executive Director of NOAH, was responsible for the day-to-day management of the agency and determined how much each contractor would be paid. JACKSON arranged to overpay certain contractors, such as Myers and Smith, instructing them to kickback portions of the overpayments to JACKSON’S benefit.
Specifically, court documents state that on numerous occasions, JACKSON instructed Myers and Smith to pay her kickbacks out of the NOAH money she paid them for work that could not be substantiated by invoices or work actually performed. For example, in or near October 2005, JACKSON, wrote a check from NOAH to Parish Dubuclet, a company operated by her friend, Smith, for approximately $15,260, which was deposited into a bank account belonging to Smith and Parish Dubuclet. On or about October 8, 2005, Parish Dubuclet wrote a check in the amount of $10,460 to JACKSON’S father, which was deposited into a bank account that JACKSON, controlled jointly with her father. Several days later, JACKSON used this money to write a check to a tree removal service to pay for the removal of a tree from her mother’s yard.
Court documents state that from in or near December of 2006 through in or near July of 2007, JACKSON contracted with Myers to renovate properties that she owned, which were located on 6th Street and Danneel Street in New Orleans, Louisiana. JACKSON paid Myers tens of thousands of dollars toward the renovation project and used public funds belonging to the United States and distributed to NOAH to pay Myers a portion of the money she owed him for these renovations.
Documents in the court records also outline that on or about November 1, 2007, JACKSON wrote two checks to companies owned and operated by Myers. One check was for $47,899.50 to Myers & Sons. JACKSON instructed Myers to give portions of this money to different entities, such as a school that JACKSON was affiliated with. The second check for $32,842.50 was payable to Excel Development, also owned and operated by Myers. JACKSON directed Myers to kickback a portion of this money to her by having him write two checks, one for $9,400 and one for $7,000 payable to Z.F., a person who JACKSON knew personally and to whose checking account she had access. Myers complied with these instructions because he knew it would ensure that he would continue getting NOAH remediation work assignments from JACKSON.
Also according to court documents, on or around August 13, 14, and 15, 2008, after JACKSON became aware that Myers had received a subpoena from a federal grand jury ordering him to turn over documents supporting the work he had done for NOAH, JACKSON provided false and fraudulent documents to Myers in an effort to mislead the federal grand jury into finding that no fraud occurred at the defendant’s direction or while she was the Executive Director of NOAH.
JACKSON is scheduled to be sentenced on October 16, 2014, and faces a maximum term of imprisonment of five years, a fine of up to $250,000, and three years of supervised release.
“Today’s guilty plea stands as the most recent example of our Office’s continued vigilance in prosecuting public corruption,” stated U.S. Attorney Polite. “By diverting federal funds from those most in need in our community, Ms. Jackson’s criminal conduct further eroded public confidence in our government. On behalf of the residents of Southeast Louisiana, we will continue to demand lawful and ethical conduct from our public officials.”
“In the wake of the recent conviction of former mayor Ray Nagin and now the guilty plea of Ms. Jackson, the FBI and its law enforcement partners will continue their tireless pursuit of all those who unlawfully financially capitalize upon the Katrina tragedy event as its 10-year anniversary nears,” state Michael Anderson, Special Agent in Charge, Federal Bureau of Investigation, New Orleans Field Office.
Special Agent in Charge Gabriel L. Grchan, IRS – Criminal Investigation, stated, “Public corruption degrades the integrity of government leadership and erodes the trust instilled in public officials by the very individuals they are appointed or elected to serve. It is a great accomplishment when an individual who has violated that trust is brought to justice. The plea ensures that Stacey Jackson will be held accountable for her misdeeds and the detriment she caused the great city of New Orleans and its citizens.”
“This guilty plea was the result of outstanding investigative work conducted by HUD-OIG, and our law enforcement partners,” stated Wyatt J. Achord, Assistant Special Agent in Charge, U.S. Department of Housing and Urban Development-Office of Inspector General. “This collaborative effort sends a clear message that if someone takes advantage of a government subsidized program they will be held accountable.”
The case was investigated by the Federal Bureau of Investigation, the Department of Housing and Urban Development - Office of Inspector General, the Internal Revenue Service Criminal Investigation, City of New Orleans - Office of Inspector General, and the United States Postal Inspection Service. The U.S. Attorney’s Office would also like to acknowledge the assistance of the Metropolitan Crime Commission.
The case was prosecuted by Assistant U.S. Attorney and Senior Litigation Counsel Fred P. Harper, Jr. and Assistant U.S. Attorney Sharan Lieberman.
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Former Acting Pembroke Township Supervisorcharged with Defrauding Township Accounts for Personal UseRead the Press Release
Springfield, Ill. – A federal grand jury today returned an indictment that charges Leon Eddie Mondy, former acting Pembroke Township Supervisor, with defrauding township accounts of more than $60,000 from August 2012 to May 2013. Mondy will be issued a summons to appear in federal court in Urbana for arraignment on a date to be determined by the U.S. Clerk of the Court.
The indictment charges Mondy, 35, of St. Anne, Ill., with one count of wire fraud. According to the indictment, as acting Pembroke Township Supervisor, Mondy was a signatory and had access to multiple bank accounts that held township funds. The indictment alleges that Mondy made cash withdrawals of township funds under the false pretense that the funds would be used for the benefit of Pembroke Township. In fact, the indictment alleges Mondy used the funds for his personal benefit, such as for gambling. Mondy allegedly withdrew cash from various Pembroke Township accounts, such as the Insurance Fund, Illinois Municipal Retirement Fund, Water Debt Fund, Community Center Fund, and the Senior Nutrition Fund.
The charge is the result of an investigation by the Federal Bureau of Investigation and the Illinois Attorney General’s Office. The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller.
If convicted, the offense of wire fraud carries a maximum statutory penalty of 20 years in prison and fines of up to $250,000.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Five Individuals Charged with Conspiring to Distribute Methamphetamine in Baker CountyRead the Press Release
Jacksonville, Florida - United States Attorney A. Lee Bentley, III, Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, and Baker County Sheriff Joey B. Dobson announce that Ashley Chase Lee (31, Alma, Georgia), Archie Crook (35, Nassau County), Robert Hartzog (27, Baker County), Anthony Fisher (35, Baker County), and Garrett Follis (27, Baker County) have been charged with conspiracy to distribute 50 grams or more of pure/actual methamphetamine. Each faces a mandatory minimum term of 10 years, up to life in federal prison. Follis, Hartzog and Crook have pleaded guilty to their charges, pursuant to written plea agreements, and are awaiting sentencing. Lee and Fisher are set for trial in September 2014, in Jacksonville.
According to the plea agreements, beginning in approximately May 2013, Lee supplied ounce quantities of crystal methamphetamine to Crook, who then supplied it to others, including Hartzog and Follis. Much of the methamphetamine was distributed from an apartment in Macclenny, Baker County, Florida. Law enforcement officers with the Baker County Sheriff’s Office and the Drug Enforcement Administration seized, in total, approximately 204.7 grams of methamphetamine, some of which was deemed to be 73.3% pure.
This case was investigated by the Drug Enforcement Administration and the Baker County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Julie Hackenberry.
Final Guilty Plea Entered in Cocaine Distribution Conspiracy with Ties to Lubbock and Odessa, TexasRead the Press Release
LUBBOCK, Texas— The last of eight defendants charged with various offenses in a cocaine distribution conspiracy that operated in Mexico and in Lubbock, Borger and Odessa, Texas, pleaded guilty today, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Efren Fabela Lopez, 34, of Odessa, pleaded guilty today, before U.S. Magistrate Judge Nancy M. Koenig, to one count of possession of cocaine and aiding and abetting. He faces a maximum statutory penalty of one year in federal prison and a $1,000 fine.
This investigation, led by the Lubbock County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), resulted in the seizure of 30 pounds of cocaine in Lubbock and Odessa that had been brought in from Mexico, 10 firearms and nearly $200,000 in cash in Borger.
Each of the four below-listed defendants pleaded guilty last month to one count of conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. Each faces a statutory penalty of not less than 10 years and up to life in federal prison and a $10 million fine.
Martin Cardona Gutierrez, 46, of Odessa
Javier Lopez Lujan, 47, of Borger
Refugio Navarrete Gutierrez, 34, of Mexico
Manuel Carillo Ortiz, 38, of Mexico
Defendant, Israel Velasco, 35, of Odessa, pleaded guilty last month to one count of conspiracy to distribute and possess with intent to distribute cocaine. He faces a statutory maximum penalty of 20 years in federal prison and a $1 million fine.
Defendant, Jerardo Salcedo Garcia, 27, of Odessa, pleaded guilty last month to possession with intent to distribute cocaine. He, too, faces a statutory maximum penalty of 20 years in federal prison and a $1 million fine.
Defendant Ismael Velasco, 35, of Odessa, pleaded guilty last month to one count of unlawful use of a communication facility. He faces a statutory maximum penalty of four years in federal prison and a $250,000 fine.
The indictment was dismissed against Gisselle Lujan, 26.
Judge Cummings ordered presentence investigation reports on all the convicted defendants with sentencing dates to be set after the completion of those reports.
The Ector County Sheriff’s Office and the Drug Enforcement Administration assisted the Lubbock County Sheriff’s Office and ATF in the investigation.
Assistant U.S. Attorney Justin Cunningham is prosecuting the case.
Federal Grand Jury in Del Rio Indicts Midland Man on Attempted Murder Charges of Border Patrol AgentsRead the Press Release
In Del Rio today, a federal grand jury indicted CARL WAYNE WILEY for attempted murder of a federal agent, announced United States Attorney Robert Pitman, Rodolfo Karisch, Del Rio Sector Chief Patrol Agent, U.S. Border Patrol, and Christopher Combs, Federal Bureau of Investigation (FBI) Special Agent in Charge of the San Antonio Division.
The four-count indictment alleges that on June 30, 2014, 48-year-old Carl Wayne Wiley of Midland, TX, attempted to kill one or more United States Border Patrol Agents who were engaged in the performance of their official duties. The indictment further charges that the defendant, using a .45 caliber Ruger revolver, forcibly assaulted and interfered with one or more United States Border Patrol Agents. Defendant also was charged with two counts of carrying and discharging a firearm during the commission of a crime of violence.
Upon conviction, the defendant faces up to 20 years imprisonment each for the attempted murder charge and the assault charge. He faces up to 10 years for the use of a firearm during the commission of a crime of violence. The defendant remains in state custody pending an initial appearance before a United States Magistrate Judge in Del Rio.
Assistant United States Attorneys Chris Blanton and Ralph Paradiso are prosecuting this case on behalf of the government.An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Edgewater, Maryland Man Sentenced to 42 Months in Prison for Defrauding SBA and IRS of More Than $7 MillionRead the Press Release
Fraudulently Obtained Over $52 Million in Government Contracts, Concealed Income by Transferring Millions from Corporate Accounts to Casinos and to Pay Other Personal Expenses, and Filed False Tax Returns
Greenbelt, Maryland - U.S. District Judge Paul W. Grimm sentenced Vernon J. Smith III, age 61, of Edgewater, Maryland, today to 42 months in prison, followed by three years of supervised release, for conspiring to defraud the United States in connection with schemes to fraudulently seek federal contracts under a Small Business Administration (SBA) program to assist disadvantaged small businesses; and to defraud the IRS. Judge Grimm found that the actual loss to the government as a result of Smith’s offenses was $7,033,844, and entered an order requiring Smith to pay that amount in restitution and forfeiture.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration Inspector General Peggy E. Gustafson; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and General Services Administration Acting Inspector General Robert C. Erickson.
“When individuals defraud the government by falsely claiming eligibility for SBA’s 8(a) Business Development Program, the biggest victims are the taxpayers and legitimate small businesses,” said Inspector General Peggy E. Gustafson of the Small Business Administration. “We are committed to helping ensure that only eligible disadvantaged small businesses benefit from the Section 8(a) program. I want to thank the U.S. Attorney's Office for its dedicated leadership and professionalism in pursuit of justice served today.”
“Americans were victimized twice by the greed of Vernon Smith. Not only did Smith decide not to pay his fair share of federal taxes and ultimately defraud the IRS out of $839,016, his actions also denied legitimate business owners of socially and disadvantaged groups the opportunity to receive government contracts to which they were entitled,” said Thomas J Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Today’s sentencing should put corrupt business owners, like Vernon Smith, on notice that the government will get to the truth no matter how they may try to conceal their involvement and income.”
“Contractors that defraud the United States to get GSA contracts will be held accountable,” said General Services Administration Acting Inspector General Robert C. Erickson.
Vernon Smith was the president and sole owner of Capitol Contractors since 2002. Capitol Contractors was a Maryland corporation with its headquarters in Capitol Heights, Maryland and later Edgewater, Maryland. Capitol Contractors had provided roofing and construction services but was largely dormant after 2002.In 1999, Vernon Smith caused a new roofing and construction company, Platinum One Contracting, Inc. (“Platinum”) to be incorporated in Maryland. Although Vernon Smith installed Anthony Wright, an African-American who was a former roofer and project manager at Capitol Contractors, to be the president and 60% owner, and Smith’s son was vice president and owned the remaining 40% of Platinum, Vernon Smith exercised complete and undisclosed control over Platinum’s business operations. Vernon Smith’s wife, Georgia Smith was in charge of Platinum’s accounting, and acted as the de facto Controller for the company.
Vernon Smith admits that from August 1999 to June 2013, he conspired to defraud the SBA in several ways. For example, Smith directed Wright to submit an application to the SBA for certification in the Section 8(a) program which did not reveal that Vernon Smith: exercised control over the company; had previously supervised Wright; owned more than 10% of Capitol Contractors; and was related to an owner of Platinum. From May 2004 through April 2010, Vernon Smith also caused Platinum to submit annual updates to the SBA Section 8(a) program that contained false information, including that the company was controlled by a socially and economically disadvantaged individual, and that no non-disadvantaged member of Platinum’s management received compensation that exceeded that received by Wright. In fact, Vernon Smith controlled the company, and Platinum’s payments to Vernon Smith and other corporate officers far exceeded payments received by Wright for 2004 through 2009. Based on the fraudulent application and annual updates, Platinum One received more than $52 million in contracts from the federal government under the Section 8(a) program, to which it was not entitled. The total loss to the government resulting from Vernon Smith’s illegal conduct, regarding the illicit profit he received by defrauding the SBA, and depriving a legitimate Section 8(a) contractor of such profit, is $6,194,828
Vernon Smith and his wife, Georgia Smith also transferred millions of dollars from Platinum to bank accounts in their own names, to casinos on their own behalf, to Capitol Contracting and another company owned by Vernon Smith, and to credit card companies to pay for personal expenses that Vernon and Georgia Smith charged to Platinum’s corporate credit cards, including extensive dental work, veterinary visits for personal pets, lavish vacations, a Royal Caribbean cruise, limousine transportation to casinos in Atlantic City, N.J., funeral expenses for a family relative, fencing for their personal residence, among others. Georgia Smith also mischaracterized numerous payments to casinos as subcontractor expenses.
In addition, Vernon and Georgia Smith signed false corporate and personal tax returns for 2005 and 2006. The Smiths knew that the cost of goods sold and payments to contractors reported on the corporate returns were false because almost all of that money was paid to, and for the benefit of, Georgia and Vernon Smith at casinos. They also knew that the income reported on their personal income taxes omitted hundreds of thousands of dollars that Capitol Contractors had paid to, and for their benefit. As a result, the Smith’s owed additional personal income tax to the IRS totaling $264,105, and Capitol Contractors owed an additional $574,911 to the IRS for tax years 2005 and 2006. The total tax loss resulting from Georgia and Vernon Smith’s conspiracy to defraud the IRS is $839,016.
Georgia Smith, age 52, of Edgewater, Maryland, pleaded guilty to conspiring to defraud the United States by filing false tax returns and is scheduled to be sentenced on July 21, 2014 at 11:00 a.m. Anthony Wright, age 42, of Bowie, Maryland, pleaded guilty to his role in the scheme and was sentenced on September 15, 2014, at 9:30 a.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the SBA Office of Inspector General; Defense Criminal Investigative Service; IRS Criminal Investigation; and the GSA Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Gregory R. Bockin and Trial Attorney Kenneth C. Vert of the U.S. Department of Justice Tax Division, who are prosecuting the case.
Dubuque Men Plead Guilty to Methamphetamine Charge Related to Apartment FireRead the Press Release
Two men have pled guilty to a federal methamphetamine charge connected with a building fire that occurred in Dubuque on February 20, 2014.
John Starks Sr., age 46, and Casey Duhme, age 24, both of Dubuque, Iowa, were each convicted of conspiracy to manufacture methamphetamine near a school. Duhme and Starks pled guilty in federal court in Cedar Rapids on June 25, 2014 and June 26, 2014, respectively.
In their plea agreements, Starks and Duhme each admitted they agreed with others to manufacture methamphetamine from February 16 through February 20, 2014. Both Starks and Duhme admitted obtaining pseudoephedrine during this time period, and Starks admitted he purchased lye. The pseudoephedrine and lye were intended to be used in the manufacture of methamphetamine.
According to Duhme’s plea agreement, Starks and Duhme were both involved in an attempt to cook methamphetamine in Starks’s apartment located on White Street. The apartment was part of a multi-family apartment building located across the street from an elementary school. The attempted cook caused a fire to erupt in the upstairs bathroom of Starks’s apartment during the early morning hours of February 20, 2014. Starks sustained significant burns on his hands. Within a couple minutes of the fire starting, Starks, Duhme, and a third person fled the apartment. No one called 911 or alerted anyone about the fire. Several minutes later, a police officer doing routine patrol noticed smoke coming from the apartment building and evacuated residents. The roof of the apartment building collapsed shortly after the evacuation. The building is no longer habitable.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after presentence reports are prepared. Starks and Duhme both remain in custody of the United States Marshal pending sentencing. They each face a mandatory minimum sentence of 1 year imprisonment and a possible maximum sentence of 40 years’ imprisonment, a $2,000,000 fine, $100 in special assessments, and at least 6 years and up to a life term of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Justin Lightfoot and was investigated by the Dubuque Drug Task Force, the Dubuque Police Department, and the Dubuque Fire Department.Court file information is available at https://ecf.iand.uscourts.gov/ cgi-bin/login.pl. The case file number is 14-cr-1009.
District Man Sentenced to 10 Years in Prison for Shooting in Northeast Washington-Defendant’s Gunfire Hit Innocent Victim, Seriously Wounding Her-Read the Press Release
WASHINGTON – Gregory Harris, 24, of Washington, D.C., was sentenced today to a 10-year prison term on charges stemming from a shooting in Northeast Washington that seriously injured an innocent victim, U.S. Attorney Ronald C. Machen Jr. announced.
Harris pled guilty in April 2014, in the Superior Court of the District of Columbia, to charges of assault with intent to kill while armed and possession of a firearm during a crime of violence. He was sentenced by the Honorable Michael Ryan. Upon completion of his prison term, Harris will be placed on five years of supervised release.
According to the government’s evidence, the shooting followed a chain of events that began about 8 p.m. on May 24, 2013, outside a liquor store in the 1000 block of Bladensburg Road NE. When Harris arrived on the scene, he observed a friend of his involved in a physical altercation with another individual. While watching the fight, Harris saw a third person use a firearm to pistol-whip his friend in the head. He then ran down an adjacent alleyway, and, within a couple of minutes, he returned to Bladensburg Road.
By the time Harris returned to the street, the fight had stopped. The two men who had been fighting with his friend, and a woman who was not part of the altercation, were close to each other. They were heading south down Bladensburg Road, away from the scene of the fight, and no longer near Harris’s friend. Harris then used a firearm to shoot multiple bullets in the direction of the three people, aiming to hit the person who pistol-whipped his friend.
Instead, Harris shot the woman, hitting her in the neck and causing her to collapse on the street. As a result of getting shot in the neck, the victim has been mostly paralyzed below her neck, retaining only limited movement in her left arm.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case for the U.S. Attorney’s Office, including Paralegal Specialist Kalisha Johnson-Clark, Victim/Witness Specialists Jennifer Clark and David Foster, and Assistant U.S. Attorney Clayton O'Connor, who prosecuted the matter.
14-158Deported Citizen of El Salvador Sentenced to Time Served for Illegally Re-entering U.S.Read the Press Release
PITTSBURGH, PA - An alien found in Allegheny County, Pennsylvania, has been sentenced in federal court to time served on his conviction of charge of Illegal Re-Entry After Deportation, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Jose Hernandez-Segura, age 35, of El Salvador.
According to the information presented to the court, Jose Hernandez-Segura, an alien, was formally removed from the United States by United States Immigration and Customs Enforcement on January 25, 2012. Jose Hernandez-Segura was found to be illegally present in Allegheny County, Pennsylvania, on April 19, 2014.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the U.S. Department of Homeland Security, Immigration and Customs Enforcement for the successful prosecution of Jose Hernandez-Segura.
Connecticut Doctor Charged with Illegally Prescribing Oxycodone, Other Controlled SubstancesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that DR. JOHN KATSETOS, 52, of Fairfield, was arrested yesterday on a charge that he exceeded the scope of his medical license to dispense controlled substances.
KATSETOS appeared today before U.S. Magistrate Judge Holly B. Fitzsimmons in Bridgeport and was released on a $1 million bond.
As alleged in a criminal complaint, DR. KATSETOS has practiced medicine for more than 20 years, most recently out of offices located at 90 Morgan Street in Stamford and 353 Bridgeport Avenue in Milford. KATSETOS operated as a general practitioner and was not a licensed as a pain specialist. A long-term Drug Enforcement Administration investigation, which included the use of undercover law enforcement personnel, revealed that KATSETOS was writing prescriptions for large quantities of Schedules II, III, IV and V controlled substances outside the scope of legitimate medical practice.
The complaint further alleges that a vast majority of these prescriptions were for medications that contain oxycodone, and that KATSETOS prescribed oxycodone despite awareness that his patients were addicted, had been arrested for possessing and distributing controlled substances, or were not actually using oxycodone themselves.
The complaint charges KATSETOS with conspiracy to distribute and to possess with intent to distribute controlled substances, as offense that carries a maximum term of imprisonment of 20 years and a fine of up to $1 million.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the DEA’s New Haven Tactical Diversion Squad and the Office of Inspector General of the U.S. Department of Health and Human Services, with the assistance of the State of Connecticut Department of Consumer Protection Drug Control Division, and several local police departments. The case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Alina Reynolds.
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(203) 821-3722 [email protected]Chinese National Pleads Guilty in Scheme to Fraudulently Obtain Technology Products from U.S. CompaniesRead the Press Release
Sought to Fabricate an Infrared Detector for Night Vision, Missile Detection and other Military Applications
Greenbelt, Maryland – Zhenchun Huang, a/k/a Ted Huang, age 51, a Chinese national and naturalized U.S. citizen, formerly residing in Clarksville, Maryland, pleaded guilty today to false personation of a federal employee and obstruction of justice, in connection with a scheme to fraudulently obtain technology products from U.S. companies for export to China.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Rick Shimon, Special Agent in Charge, U. S. Department of Commerce’s Bureau of Industry and Security Office of Export Enforcement.
According to his plea agreement, Huang worked as a contract scientist at the National Aeronautics and Space Administration’s (NASA) Goddard Space Flight Center in Greenbelt from February 1995 to June 2001. Thereafter, he consulted on a limited basis until October 2003 to provide as-needed assistance on a specific Goddard project.In April 2001, Huang incorporated Allray in Maryland for the stated purpose of forming joint ventures with Chinese governmental and private entities to research, develop and distribute telecommunication and information technology products. Though Allray’s principal place of business was listed as Huang’s place of residence, its entire base of operations was located in China.
During the latter part of 2003 and into early 2004, in an effort to obtain technological components for use by Allray, Huang falsely represented to three U.S. companies that he was employed by NASA and was working on a joint project between NASA and Allray. No such joint project existed. The components which Huang sought included cadmium zinc telluride (CZT) and mercury cadmium telluride (MCT) wafers, considered dual-use technology subject to U.S. export controls. These products were unrelated to Huang’s former work at NASA.
In order to make it appear as though NASA was involved in procuring these products, Huang directed that purchased items be shipped to an associate employed at Goddard; used a Goddard email account to communicate with the companies and subsequently redirect emails to his personal email account; faxed (or had faxed) a purchase order from a number associated with Goddard; and presented his former business card to companies that identified him as a contract employee of NASA/Goddard.
In late October 2003, as a result of his false representations, Huang obtained five CZT wafers from Company 1 and four silicon wafers from Company 2. Huang directed his associate working at Goddard to ship two of the CZT wafers to Company 2 so it could apply a specific growth process to add a layer of MCT to the wafers. Huang also directed his associate to buy 10 additional CZT wafers for $10,620 from Company 3. Thereafter, the associate mailed to Company 2, from the Goddard shipping facility and at government expense, two of the CZT wafers Huang had purchased from Company 1. The associate also sent an email from his Goddard email account to Company 3 falsely stating that NASA would be purchasing, through Allray, the 10 CZT wafers sought by Huang.
Company 3 subsequently determined that Allray was a Chinese company headed by Huang, and that the shipping/billing address provided for the purchase was a residential address. Accordingly, Company 3 did not sell the CZT wafers, and the MCT wafers were never manufactured. If successful, the MCT growth process requested by Huang would have fabricated a type of infrared detector suitable for military applications, such as night vision and missile detection, that would have been controlled for export to China. The 10 CZT wafers sought from Company 3 were similarly controlled for export.
In October 2003, Huang bought optoelectronic epoxy from Company 4. Huang directed that the item be shipped to NASA/Goddard, thereby suggesting that the purchase was related to government business. However, Huang provided his residential address for the shipment. Between February and April 2004, Huang tasked his associate with finding an optical filter that could be used in ultraviolet applications. The associate used his Goddard email account to contact Company 5 to obtain a price quote, which he then forwarded to Huang, but the filter was never purchased.
In the fall of 2005, Huang entered into an agreement with company X, which was co-founded by his associate, to build a prototype ultraviolet non-line-of-sight communications system for Allray. From December 2005 to April 2006 and in connection with its agreement with Huang, company X purchased 34 ultraviolet light emitting diodes (UV/LEDs) from Company 6, at a total cost of $3,556. The technical specifications of the purchased UV/LEDs, and the manner in which they were to be used, suggested an application more consistent with a covert communications device. Huang had initially contacted Company 6 in October 2005, following an email introduction by his associate, to offer Allray’s services in packaging the company’s UV/LEDs. Huang indicated that Allray was located in China, but falsely stated that Allray’s customers were mainly in the United States. Company 6 did not respond to Huang’s offer. Huang’s associate, who had dealings with Company 6 in his capacity as a NASA employee, never advised Company 6 of his association with company X. In early May 2006, the associate demonstrated to Huang a prototype of the device being built for Allray. At that time, Huang was given two of the diodes obtained from Company 6.
On May 8, 2006, U.S. Customs officials at O’Hare International Airport in Chicago inspected Huang and his luggage just prior to his outbound flight to China. Two of the UV/LEDs purchased from Company 6 were found in Huang’s luggage. Huang made false statements regarding who had given him the diodes, what they were worth, what company had manufactured them, and how they would be used in China. He also provided false information regarding the technical specifications of the diodes.
Huang subsequently directed his wife not speak to, or ask, anyone about what had happened at the airport; to say she did not know anything if questioned; to throw away the box that had originally contained the UV/LEDS found in his luggage; and to clean out their residence. In response, his wife threw away the UV/LED box and certain Allray documents in their home. She deleted all Allray-related files from their home computer, though she saved certain Allray files on a thumb drive. The government recovered some of the documents, including identifying and financial information for Allray’s investors in the United States, Allray’s IPO plan, a 2006 PowerPoint presentation charting Allray’s accomplishments in China, and an article on a short-range, non-line-of-sight ultraviolet communication device.
Following the commencement of the government’s investigation of the scheme, Huang absconded to China and was a fugitive until his arrest in London in December, 2013. Feng Yan, age 46, formerly of Ellicott City, Maryland, was also charged by indictment for his alleged participation in the scheme and is currently a fugitive.
Huang and the government have agreed that if the Court accepts the plea agreement, Huang will be sentenced to 15 months in prison. U.S. District Judge Roger W. Titus scheduled sentencing for October 20, 2014 at 9:00 a.m.
United States Attorney Rod J. Rosenstein praised the FBI, HSI Baltimore and Department of Commerce for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Christine Manuelian, who is prosecuting the case.Chinese National Arrested for Conspiring to Steal Trade SecretsRead the Press Release
DES MOINES, IA - United States Attorney Nicholas A. Klinefeldt announced today the arrest and indictment of MoYun, for conspiracy to steal trade secrets. Mo Hailong was previously arrested in December of 2013. The Superseding Indictment alleges that from on or about January of 2007, to on or about December of 2012, Mo Hailong, Mo Yun and other individuals conspired to steal the trade secrets of several U.S. based seed manufacturing companies, and transport those trade secrets to China for the benefit of their China-based seed company.
Mo Yun is a Chinese national who was employed by Beijing Dabeinong Technology Group Company (DBN) from August 2001 to March 2009. DBN is believed to be a Chinese conglomerate with a corn seed subsidiary company, Kings Nower Seed. Born in 1972, Mo Yun was in charge of DBN’s research project management. Yun is the sister of Mo Hailong and the spouse of DBN founder and current chairman Dr. Shao Genhuo.
During the course of the conspiracy, Mo Yun, Mo Hailong and others are alleged to have conspired to steal valuable inbred corn seed from production fields in Iowa and Illinois. This “inbred” or “parent” line of seed constitutes valuable intellectual property of a seed producer. After stealing the inbred corn seed, conspirators attempted to covertly transfer the inbred corn seed to China.
The investigation was initiated when DuPont Pioneer security staff detected suspicious activity, and alerted the Federal Bureau of Investigation (FBI). DuPont Pioneer, Monsanto and their staff have been fully cooperative throughout the investigation, which is being led by the FBI.
“The FBI’s investigation into Mo Yun should not go unnoticed by those who seek to steal trade secrets and private business information,” said Thomas R. Metz, Special Agent in Charge of the Omaha Division of the FBI. “Identifying and deterring those focused on stealing trade secrets, propriety and confidential information or national security information is the number two priority for the FBI second only to terrorism.”
In accordance with the Iowa Rules of Professional Conduct, the public is reminded that a criminal indictment constitutes facts supporting probable cause, and that the defendants are presumed innocent until and unless proven guilty.
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Cedar Rapids Man Sentenced to 10 Months for Failing to Register as A Sex OffenderRead the Press Release
A man who failed to register as a sex offender was sentenced today to ten months in federal prison.
Kendall Woodall, age 35, of Cedar Rapids, Iowa, received the sentence after a March 24, 2014, guilty plea to one count of failing to register as a sex offender. At the guilty plea hearing, Woodall admitted that he moved from Missouri to Iowa and did not register as a sex offender in Iowa. Woodall was required to register because of his 2002 Missouri convictions for statutory rape and statutory sodomy.
Woodall was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Woodall was sentenced to ten months’ imprisonment. A special assessment of $100 was imposed, and Woodall must also serve a five-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the United States Marshals Service and the Iowa Division of Criminal Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 14-31.
CaliforniaRead the Press Release
Man Sentenced On Charges Of Conspiracy To Distribute More Than 5 Kilograms Of Cocaine And 1000 Kilograms Of Marijuana And Money Laundering Charges
CONCORD, NEW HAMPSHIRE – Jon Hagstrom, 34, of North Hollywood, California, was sentenced in United States District Court for the District of New Hampshire 126 months in prison after pleading guilty to conspiracy to distribute more than 5 kilograms of cocaine and more than 1000 kilograms of marijuana, conspiracy to commit money laundering and aiding and abetting the possession of more than 5 kilograms of cocaine with the intent to distribute, announced United States Attorney John P. Kacavas.
Between the summer of 2007 and August of 2009, members of the conspiracy, who had ties to a Canadian criminal organization, imported more than 1000 kilograms of exotic/high grade marijuana into the United States for distribution in the New England area, including New Hampshire, and New York. The organization used the proceeds received from the distribution of the marijuana to purchase more than 150 kilograms of cocaine from California which was then exported to Canada. Hagstrom was the source of the cocaine.
The defendant worked with other co-conspirators to coordinate the transport of the cocaine from California to New Hampshire and elsewhere in New England. On each occasion, the defendant directed couriers to transport approximately 25 to 50 kilograms of cocaine from California to New Hampshire and elsewhere in New England. The defendant also directed the couriers to pick up millions of dollars in marijuana drug proceeds and transport those drug proceeds back to him in California. The defendant also used private jets to travel from California to the Boston, Massachusetts area to pick up illegal marijuana drug proceeds.
During its investigation and prosecution of the 23 individuals involved in the drug conspiracy, the United States seized over three million dollars, over 1000 kilograms of marijuana and over 50 kilograms of cocaine. Hagstrom forfeited $90,000.00 in property to the United States and was the last defendant sentenced in the investigation.
The investigation was conducted by the Drug Enforcement Administration, Internal Revenue Service, Department of Homeland Security, Customs and Border Protection and Massachusetts State Police. The case was prosecuted by Assistant U.S. Attorneys Debra M. Walsh, Robert Kinsella and Robert Rabuck.
Boston Man Charged in Twitter HackRead the Press Release
SAN JOSE – Cameron Lacroix was charged today in San Jose with hacking Zendesk, a San Francisco company that provides helpdesk support to numerous companies, including Twitter, announced U.S. Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
According to the criminal information, Lacroix, 25, of New Bedford, Mass., hacked into Zendesk’s website in February 2013 and disabled a security feature designed to limit who can view information pertaining to Zendesk’s customers. The information charges that Lacroix exported approximately one million Twitter support tickets to computers outside of Zendesk’s network and that he used that information to compromise and deface the Twitter feeds for two companies. The information further alleges that Zendesk and Twitter incurred combined losses of over $200,000 responding to the attacks.
Lacroix is expected to make his first appearance on Aug. 8, 2014, in the District of Massachusetts, where he is also facing federal charges in No. 14-CR-10162-MLW. Lacroix is out of custody in the Boston case, having been released on a $50,000 personal recognizance bond.
An information merely alleges that crimes have been committed; all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of the offense charged in the information, a violation of 18 U.S.C. §§ 1030(a)(5)(A) and (c)(4)(B), the defendant would face a maximum sentence of 10 years, and a fine of $250,000, plus restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
David R. Callaway is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Elise Etter and Lakisha Holliman. The prosecution is the result of an investigation by the FBI.
(Lacroix information )
Alleged Sports Bookie Charged with Filing A False Tax ReturnRead the Press Release
Albert A. Riccardi, 64, of Sewell, NJ, was charged today by Information with filing a false tax return, announced United States Attorney Zane David Memeger. The Information charges that from 2009 through 2012, Riccardi operated a sports bookmaking operation and accepted payments from his bettors in the form of checks, money orders, and cash. The Information alleges that in 2010 and 2011, Riccardi failed to report the income from his bookmaking operation, thereby underreporting his income for each year by over $98,000 and $185,000, respectively.
If convicted, the defendant faces a maximum possible sentence of three years of imprisonment, one year of supervised release, a $100,000 fine, and a $100 special assessment.
The case was investigated by the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Nancy E. Potts.Click here to view the indictment
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