Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 14 May 2014
Former Dunmore Man Sentenced to Nine Years’ Imprisonment for Distributing HeroinRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that United States District Court Judge Malachy E. Mannion has sentenced Kevin Lawrence Johnson, age 35, formerly of Dunmore, Pennsylvania, to nine years’ imprisonment for distributing heroin on numerous occasions between 2010 and May 2013 in Lackawanna County, Pennsylvania.
According to United States Attorney Peter J. Smith, Johnson routinely obtained heroin in Philadelphia and transported it to Lackawanna County for distribution with the assistance of street level dealers working for him. On September 4, 2013, Johnson appeared in federal court and pleaded guilty to heroin distribution. In doing so, he admitted to distributing more than 400 grams of heroin during the scheme. In addition to the nine-year term of imprisonment, Judge Mannion ordered that Johnson be placed under the supervision of the United States Probation Office for a period of three years following the service of his prison sentence.
The case was investigated by the Federal Bureau of Investigation, the Scranton Police Department, and the Lackawanna County District Attorney’s Office. Assistant United States Attorney John Gurganus prosecuted the case.
Former Commander of the Pacific Grove Police Department Pleaded Guilty to Extortion and Wire FraudRead the Press Release
SAN JOSE – John Nyunt pleaded guilty yesterday in federal court to extortion and wire fraud, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
In pleading guilty, Nyunt admitted that he obtained property from a victim who came to the police department to report a crime. Specifically, Nyunt told the victim that the police department would not investigate her complaint that she was the victim of electronic surveillance and stalking. Instead of taking official action, Nyunt instructed the victim to seek the assistance of a private investigative agency. Nyunt ran said investigative agency with the assistance of another person. Upon receiving the request for assistance at his investigative agency, Nyunt and his accomplice pretended to investigate the victim’s complaint and also pretended to provide the victim with security in the form of off-duty police officers, neither of which was true. The victim paid Nyunt and his accomplice $10,000 for their purported services.
Nyunt also admitted that he instructed another Pacific Grove police officer not to make an official investigation of the victim’s complaint, and rather to give Nyunt any evidence provided by the victim. Nyunt maintained a file of this evidence without the knowledge of the police department. When the victim could make no further payments for the services of the investigative agency, Nyunt told her falsely that the police department and the FBI would continue to investigate her complaint.
Furthermore, Nyunt admitted that he gave his accomplice his departmental password, and access, to a commercial database intended for the sole use of law enforcement. He did so, without the authorization or knowledge of the police department, in order that his accomplice could obtain financial and personal information belonging to various other people. With Nyunt’s knowledge, his accomplice presented herself falsely as an authorized departmental user of the commercial database and did, in fact, obtain financial and personal information belonging to various people. Nyunt concealed this wrongful use from the department, in part by making false statements to department officials.
On April 24, 2014, Nyunt pleaded guilty in state court in Monterey County to one count of dissuading a person from reporting a crime by threats of violence, one count of being an accessory after the fact to theft and burglary, and one count of being an accomplice to the burglary of a business, all felonies, and received a sentence of three years imprisonment. Nyunt is currently being held in federal custody.
Nyunt, 51, was charged by information on April 24, 2014, with one count of extortion, in violation of 18 U.S.C. § 1951, and one count of wire fraud, in violation of 18 U.S.C. § 1343. Under the plea agreement, Nyunt pleaded guilty to both counts.
Nyunt’s sentencing hearing is scheduled for Sept. 2, 2014, at 9:00 a.m., before the Honorable Beth L. Freeman, United States District Court Judge, in San Jose. The maximum statutory penalty for each count in violation of 18 U.S.C. §§ 1951 and 1343 is twenty years’ imprisonment and a fine of $250,000, plus restitution. Pursuant to the binding plea agreement, if accepted by the court, the parties have agreed that the defendant should be sentenced to two years imprisonment, to run concurrent with his state sentence. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Philip A. Guentert is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Elise Etter. This investigation was conducted jointly by the FBI and investigators from the Monterey County District Attorney’s Office.
(Nyunt information )
Former Atascadero Real Estate Developer Pleads Guilty to Defrauding Investors in Central Coast-Based Real Estate Fraud SchemeRead the Press Release
LOS ANGELES – A real estate developer who formerly resided in Atascadero pleaded guilty today to federal fraud and money laundering charges for bilking investors who put money into Central Coast real estate projects.
Kelly Gearhart, 53, who currently resides in Wadsworth, Ohio, pleaded guilty this morning to two counts of wire fraud and one count of money laundering. Gearhart pleaded guilty before United States District Judge Otis D. Wright II.
In a plea agreement filed late yesterday, Gearhart admitted that he knowingly and intentionally made misrepresentations and omissions relating to the Vista Del Hombre real estate development project to induce victims to part with their money.
Gearhart was initially charged in a 16-count indictment returned by a federal grand jury in 2012. The indictment alleged that Gearhart told investors that their investments – which he called loans and promised would be paid back with interest – were secured by specific lots. However, Gearhart admitted in court today that he sold lots associated with the Vista Del Hombre real estate development project, even though those lots were being used to secure others’ loans. Gearhart further admitted that he used those same lots to obtain bank financing. The plea agreement allows prosecutors to prove at sentencing that Gearhart made additional misrepresentations as part of the scheme.
Gearhart is scheduled to be sentenced by Judge Wright on December 29. The wire fraud charges each carry a statutory maximum penalty of 20 years in federal prison. The money laundering count carries a statutory maximum penalty of 10 years in federal prison. During this morning’s court hearing, prosecutors said they intend to seek a sentence of 135 months in federal prison, while Gearhart’s attorney said he will not seek a sentence below 57 months. However, Judge Wright is free to sentence Gearhart up to the statutory maximum of 50 years in federal prison.
The plea agreement permits prosecutors to seek restitution for victims of the Vista Del Hombre real estate development project, as well as any other project in which there was fraud, a figure that may be as high as $20 million. It is unclear if there is any money available to repay victims.
The case against Gearhart is related to a case against James Hurst Miller Jr., the former president of the Atascadero-based Hurst Financial Corporation. Miller, who previously pleaded guilty to fraud and money laundering charges, is scheduled to be sentenced by Judge Wright on September 8.
The cases against Gearhart and Miller are the result of an investigation by the Federal Bureau of Investigation and IRS - Criminal Investigation.
Release No. 14-061
Florida Man Charged in Manhattan Federal Court in Connection with Multimillion-Dollar Real Estate Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in Charge of the New York Field Office (“FBI”), announced today that JOSEPH DEL VALLE, an owner and partner of various investment companies, including Vanquish Acquisition Partners LLC and PM Capital Management LLC, which were based in Manhattan, New York, surrendered this afternoon on charges of wire fraud and wire fraud conspiracy for operating a fraudulent scheme related to a Florida real estate development project. DEL VALLE is alleged to have obtained approximately $6.4 million from investors for a real estate development project in Miami, Florida. DEL VALLE allegedly took more than $3 million of the investors’ money and used it for other investments and his personal expenses. He will be presented in the United States District Court for the Southern District of New York today.
Manhattan U.S. Attorney Preet Bharara stated: “Joseph Del Valle solicited and obtained over $6 million from people who thought they were investing in a Miami real estate development. But, as alleged, Del Valle misappropriated much of that money, using it for his own purposes, including for hotels, restaurants, and a cruise. There are inherent market risks in most investments, but being swindled is not one that investors should have to bear.”
Assistant Director-in-Charge George Venizelos stated: “This is the same old song. Del Valle promised lucrative real estate investments, but what he delivered was a house of cards. We expect people to make money legitimately, not by stealing from others as alleged in today’s complaint.”
According to the allegations in the Complaint unsealed today in Manhattan federal court:
Beginning in 2005, JOSEPH DEL VALLE, a co-conspirator (“CC-1”), and an employee of Vanquish Acquisition Partners LLC, began soliciting investors for a real estate development project in the Little Havana neighborhood of Miami (referred to herein as “Project Miami”). Project Miami involved two high-rise buildings in which the bottom floors would house retail shops and the top floors would be residential condominiums. Project Miami was designed to provide affordable housing to middle-income individuals and included an arrangement for financing so that purchasers of the condominiums would receive government-subsidized mortgages. From 2005 through 2007, DEL VALLE, CC-1, and the employee obtained approximately $6.4 million from investors for Project Miami.
Prior to making any investments, investors were told that the investment was solely for Project Miami. Investors were provided with various materials that specified the investments were for Project Miami, and provided that DEL VALLE and his company would only take a five percent management fee. However, almost immediately after investors transferred funds for Project Miami, almost all of which were sent to banks in Manhattan, New York, DEL VALLE and CC-1 transferred amounts far greater than five percent to other bank accounts and began using the funds for other purposes, including investments in a wine magazine and for DEL VALLE’s personal use. For example, in October 2007, DEL VALLE used $30,000 of investor money in Europe for, among other things, hotels, restaurants, a cruise, and cash withdrawals. In total, DEL VALLE and CC-1 used over $3 million for other investments or personal expenses.
When investors became suspicious and requested financial statements for their investments and a return of their money, DEL VALLE represented to investors in phone calls and e-mail communications that the investment funds were secure when, in fact, a large portion of the investors’ money had already been misappropriated and/or diverted to other uses. DEL VALLE also falsely told investors that financial statements were in the process of being prepared and would be mailed to them shortly, but in fact, DEL VALLE and CC-1 had not provided any financial information to the accountant responsible for the preparation of financial statements of the relevant entities.
DEL VALLE, 59, of Aventura, Florida, has been charged with one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carry a maximum potential penalty of 20 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the work of the FBI.
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. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Parvin Moyne is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Del Valle, Joseph Complaint
Fenton Man Sentenced to 72 Months for Unlawful Possession of A FirearmRead the Press Release
St. Louis, MO –The United States Attorney's Office announced today that DERIC S. SILMAN of Fenton, Missouri, was sentenced today to 72 months for one felony count of Being a Previously Convicted Felon in Possession of a Firearm. He appeared before United States District Judge Stephen N. Limbaugh, Jr.
On March 9, 2013, a dispatcher for the Ellsinore Police Department received a telephone call from an individual stating Silman was at his residence and that Silman had pulled a pistol on him. Officers responded to the residence and found Silman inside and placed him under arrest. Officers searched the car that Silman had driven to the residence and located a loaded 9mm pistol under the driver’s seat.
Silman had previously been convicted of the felonies of stealing, knowingly burning, tampering in the first degree, resisting arrest, assault and possession of a controlled substance. As a convicted felon, Silman was prohibited from possessing firearms.The case was investigated by the Ellsinore Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorney Larry H. Ferrell handled the prosecution for the Government.
Fenton Area Woman Sentenced for EmbezzlementRead the Press Release
St. Louis, MO – ELAINE LEWIS was sentenced to 27 months in prison for embezzling more than $300,000 from a church checking account, between 2009 and August 2013. In addition to the prison sentence, she was also ordered to pay restitution of more than $303,000.
According to court documents, Elaine Lewis worked as a bookkeeper for the Lutheran Church of the Resurrection, located in St. Louis County, Missouri. Between 2009 and August 2013, Lewis used a variety of schemes to embezzle more than $300,000 from the Church’s bank account at Bank of America. Most of the funds were transferred and deposited into a Commerce Bank account associated with her family’s business -- Advanced Lock & Key, Inc. -- which was operated out her residence in Fenton, Missouri.
Lewis, Fenton, Missouri, pled guilty in December to one felony count of mail fraud. He appeared today for sentencing before United States District Judge Rodney W. Sippel.
This case was investigated by the United States Postal Inspection Service and the Sunset Hills, Missouri, Police Department. Assistant United States Attorney John Bodenhausen handled the case for the U.S. Attorney’s Office.
Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ----- United States Attorney Bill Nettles stated today that a Federal Grand Jury in Charleston, South Carolina, returned Indictment(s) against the following:
Aynor Man Indicted for Union Theft:
Timothy Gamble, age 44, of Aynor, South Carolina, was charged in a 1-count Indictment with Theft of Union Funds, a violation of Title 29, U. S. C. §501(c). The maximum penalty that Gamble could receive is 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Department of Labor and is assigned to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.
Walterboro Man Indicted for Gun Charges:
Rodney Faulkenberry, age 55, of Walterboro, South Carolina was charged in a 2-count Indictment with being a Felon in Possession of a Firearm and Possession of a Stolen Firearm, a violation of Title 18, U. S. C. § 922. The maximum penalty that Faulkenberry could receive is 15 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Alcohol Tobacco and Firearms (ATF) and the Colleton County Sheriff’s Office and is assigned to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.Federal Employee Pleads Guilty to Stealing Government Property for Home Improvement ProjectsRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that VENITA GODFREY-SCOTT, 47, of New Haven, waived her right to indictment and pleaded guilty today before U.S. Magistrate Judge Donna F. Martinez in Hartford to one count of theft of government property, which she used for various home improvement projects.
According to court documents and statements made in court, GODFREY-SCOTT was employed by the U.S. Department of Veterans Affairs (“VA”) at the Medical Center in West Haven as a supervisor in the Facilities Management Service, which is responsible for carpentry, paint, locks, doors, and other minor construction projects at the Medical Center. From approximately 2010 until 2013, GODFREY-SCOTT directed VA employees that she supervised to perform home improvement projects at her private residence, including a deck in her backyard, carpet installation, and various kitchen, bathroom and basement improvements. GODFREY-SCOTT directed the employees to use materials, supplies, tools, and vehicles belonging to the VA, and also had the employees purchase necessary materials at local stores using her government-issued credit card. Some of the projects were performed during regular work hours.
The total loss to the government as a result of GODFREY-SCOTT’s criminal conduct is estimated to be between $15,000 and $20,000.
GODFREY-SCOTT is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny in Hartford on August 4, 2014, at which time she faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
This case is being investigated by the Department of Veterans Affairs Office of Inspector General, the Department of Veterans Affairs Police and the General Services Administration, Office of Inspector General, Office of Investigations, New England Regional Investigations Office in Boston. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Electrolux Agrees to Pay $750,000 Civil Penalty for Delay in Reporting Oven HazardRead the Press Release
The Justice Department’s Civil Division announced today that Electrolux Home Products Inc. (Electrolux), of Charlotte, North Carolina, has agreed to pay a civil penalty of $750,000 to settle allegations that it knowingly failed to report immediately to the U.S. Consumer Product Safety Commission (CPSC) a safety hazard associated with certain wall ovens sold to consumers. Electrolux has also agreed to establish and maintain a compliance program with internal recordkeeping and monitoring systems to keep track of information about product safety hazards.
“Manufacturers and distributors of consumer products are required to report product defects and hazards to the Consumer Product Safety Commission immediately and there are penalties for those who fail to do so,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division. “We will continue to work with our partners at the CPSC to ensure that they can act promptly to protect consumers from injuries.”
In a complaint filed on behalf of the CPSC in U.S. District Court for the Southern District of Georgia, the United States alleged that Electrolux became aware of incidents in which gas could build up in the oven during broiling and escape and ignite, causing burn and fire hazards to consumers. Electrolux imported and distributed approximately 7,800 of the Kenmore ovens that were sold by Sears and other stores throughout the United States.
“CPSC will vigorously enforce the immediate reporting requirement found in the Consumer Product Safety Act,” said CPSC Acting Chairman Bob Adler. “The federal reporting rules are aimed at protecting the safety of the American public. Delay in reporting of product defects and hazards by manufacturers, distributors or retailers can result in civil penalties and other measures designed to ensure consumer safety.”
Under the Consumer Product Safety Act (CPSA), manufacturers, distributors, and retailers are required to report product hazards to the CPSC. A knowing violation of the CPSA subjects a firm to civil penalties. The United States alleged that between February 2006 and November 2007, Electrolux knew of 22 consumer reports of flames shooting out of the oven when the broiler was on. The incidents resulted in consumer injuries ranging from singed hair to facial burns. The United States alleged that Electrolux failed to immediately report hazards with the oven, despite the fact that Frigidaire Canada, Electrolux’s sister company, identified the defective and hazardous nature of the ovens in January 2005 and implemented a design change to fix the defect in March 2006.
“Public safety is a paramount concern,” said United States Attorney, Southern District of Georgia Edward J. Tarver. “The United States Attorney’s Office must and will continue to work together with the CPSC to protect consumers.”
During the relevant time period, Electrolux’s principal place of business was in Augusta, Georgia. A recall of the ovens was announced in 2008. In agreeing to settle this matter, Electrolux has not admitted that it knowingly violated the CPSA.
The matter is being handled by the Department of Justice’s Consumer Protection Branch and the U.S. Attorney’s Office for the Southern District of Georgia, on behalf of the Consumer Product Safety Commission.Eastern Distrct North Carolina Seafood Distributor Pleads Guilty to Tax EvasionRead the Press Release
WASHINGTON – Jeffrey Wayne Scott, 48, of Wilmington, North Carolina, pleaded guilty to tax evasion in Raleigh, North Carolina, the Justice Department and Internal Revenue Service (IRS) announced today. Scott was indicted on Nov. 25, 2013, for five counts of personal income tax evasion and one count of filing a false corporate tax return. He pleaded guilty to one count of willfully attempting to evade his personal income tax for tax year 2007.
According to court documents and court proceedings, Scott has owned and operated Greenville Loop Seafood (GLS), a seafood distribution company located in Wilmington, since 1995. For tax years 2006 through 2010, Scott and his wife filed joint individual income tax returns. Scott provided his return preparer with handwritten summaries of gross receipts and categorized expense items for the wholesale and retail fish distribution businesses as well as tax documents provided by financial institutions. Scott, under penalty of perjury, reported that his taxable income for these five years ranged between $23,934 and $92,999, and paid only $91,800 in federal income taxes for this time period. During these five years, however, the Scotts spent far in excess of this reported taxable income on personal expenditures.
According to court documents and court proceedings, between 2006 and 2010, the Scotts paid for nearly all of their living expenses with checks from GLS. This included, among other things, utilities, insurance premiums, landscaping, home improvements, school fees and a country club membership. They also purchased five vehicles totaling more than $200,000, a $100,000 boat and a $2.1 million waterfront home. Scott also made a monthly transfer of $10,000 from GLS’ business account into a personal brokerage account. After the purchase of their home in June 2009, Scott stopped transferring funds to the brokerage account, but instead used funds from GLS’ business account to pay the mortgage and related expenses. Through a bank deposit and expenditure analysis, the IRS calculated that Scott failed to report taxable income for these five years in excess of $1,151,642 and owed at least $390,678 in additional taxes. For the 2007 tax year, Scott failed to report $328,754 in taxable income with an additional tax due and owing of $113,967.
According to court documents and court proceedings, when first contacted by IRS-Criminal Investigation agents in June 2011, Scott falsely stated that he was letting friends stay in his second home rent free. Furthermore, despite being aware that he was under criminal investigation, in November 2012, Scott filed a false 2011 GLS corporate income tax return claiming the painting of his personal residence, repair work by a plumber at his personal residence, and health bills related to his family dog as business expenses.
Chief U.S. District Judge James C. Dever III scheduled the term of court to begin Aug. 18, 2014. Scott faces a statutory maximum prison term of five years and a maximum fine of $250,000.
This case was investigated by special agents of IRS-Criminal Investigation. Assistant U.S. Attorney Susan B. Menzer and Trial Attorney Todd A. Ellinwood of the Justice Department’s Tax Division are prosecuting the case.
Easley Man Pleads Guilty to Theft of Government FundsRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ----- United States Attorney Bill Nettles stated today that Tony Lee Holcombe, age 61, of Easley, South Carolina, pled guilty yesterday afternoon in federal court in Spartanburg, to theft of Government funds, a violation of Title 18, United States Code, Section 641. United States District Judge Mary G. Lewis of Spartanburg accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
In July 2010, the Department of Veterans Affairs (“VA”) awarded Holcombe disability pension benefits for a non-service related impairment. Holcombe was declared permanently and totally disabled. In the letter informing Holcombe of his pension, the VA instructed Holcombe to report immediately if his income, status, or net worth increased or changed.
In September 2012, the VA received an anonymous complaint indicating that Holcombe was operating a construction business while receiving a disability pension. Agents investigated and found Holcombe on a job site where Holcombe was remodeling a home for a client. Holcombe admitted owning R&T Exteriors with another individual. He explained that “We mainly do siding, boxing, and metal roofs.” Holcombe indicated that he was a “silent” partner in the business and grossed a substantial amount of money.
Agents continued their investigation of Holcombe and talked to former employees, co-workers, and contractors who confirmed that Holcombe was working and receiving undisclosed income during the period he was receiving VA benefits for permanent and total disability.
The VA has calculated the overpayment amount as $33,470.00.
Mr. Nettles stated the maximum penalty Tony Lee Holcombe can receive is a fine of $250,000 and/or imprisonment for 10 years, plus a special assessment of $100.
The case was investigated by agents of the Department of Veterans Affairs, Office of the Inspector General. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.EPA Requires Global Titanium Manufacturer to Investigate and Clean up PCB Contamination in NevadaRead the Press Release
Titanium Metals Corporation (TIMET), one of the world’s largest producers of titanium parts for jet engines, has agreed to pay a record $13.75 million civil penalty and perform an extensive investigation and cleanup of potential contamination stemming primarily from the unauthorized manufacture and disposal of PCBs (polychlorinated biphenyls) at its manufacturing facility in Henderson, Nevada, the Department of Justice and the U.S. Environmental Protection Agency (EPA) announced today.
The penalty is the largest ever imposed for violations of the Toxic Substances Control Act (TSCA) at a single facility. TIMET will pay an additional $250,000 for violations related to illegal disposal of hazardous process wastewater, in violation of the Resource Conservation and Recovery Act (RCRA).
Under the settlement, EPA expects that the settlement will result in the removal of approximately 84,000 pounds of PCB-contaminated waste from the environment each year, and will prevent the improper disposal of 56 million pounds of hazardous waste each year.
“This settlement holds TIMET fully accountable for the period of its unauthorized manufacture and handling of harmful PCBs at the Henderson facility,” said Robert G. Dreher, Acting Assistant Attorney General for the Environment and Natural Resources Division. “It will also result in substantial environmental cleanup and protection for the benefit of residents of the area , now and in the future .”
“This record penalty reflects EPA’s commitment to protect communities by reducing pollution from the mineral sector,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “Today’s settlement ensures TIMET complies with the law and takes important steps to build transparency in the investigation and remediation of this facility.”
In addition to paying the penalty and performing the investigation and cleanup, the settlement requires TIMET to electronically submit monitoring data biannually to EPA for three years showing that it is appropriately managing any PCBs it generates. TIMET has also agreed to allow the Nevada Division of Environmental Protection (NDEP) to make public TIMET’s EPA-approved work plans and completed work reports through a dedicated website.
The company has already spent approximately $6 million on investigation, site cleanup and compliance measures to address the potential contamination. This work has included extensive sampling; draining and relining of a surface impoundment; analyzing the extent of PCB contamination in its solid waste landfill; removing PCB waste from that landfill; and decontaminating processing equipment. In addition, TIMET estimates that it will spend at least $1 million to complete the work required by the settlement.
TIMET processes titanium from rutile ore at its 108-acre manufacturing facility at the Black Mountain Industrial (BMI) Complex in Henderson. This process generates hazardous waste and PCBs. In the complaint, the government alleged that EPA inspections conducted in 2005, 2006 and 2008 revealed that TIMET had been unlawfully manufacturing PCBs as a by-product of its titanium manufacturing process, without an exclusion from TSCA’s ban. The 2008 EPA inspection also revealed that the company had disposed of PCB-contaminated waste in a solid waste landfill and a trench at the plant. The complaint further alleges that, on several occasions during 2005 and 2007, the company had unlawfully disposed of acidic, corrosive hazardous process wastewater into an unpermitted surface impoundment at the facility, in violation of RCRA.
Since 2007, the company has been working with EPA to bring the facility into compliance. TIMET has taken steps to reduce significantly the amount of PCBs it generates, manage appropriately the PCBs it does generate, and TIMET already has corrected the other regulatory violations cited in the complaint. TIMET is now in the process of documenting that it qualifies for an exclusion from TSCA’s ban on the manufacture of PCBs. As a part of that process, TIMET will provide required documentation to certify to EPA that it is in compliance with TSCA requirements governing the manufacture and disposal of PCBs.
TIMET was purchased by Precision Castparts Corporation in 2012. Both companies have worked with EPA to achieve compliance and to clean up the operations. The EPA and NDEP will continue to oversee multiple cleanup efforts at the facility and in the BMI Complex.
PCBs are human-made organic chemicals that were widely used in paints, construction materials, plastics, and electrical equipment prior to 1978. PCBs, which are probable carcinogens, have been banned in the United States for the last 30 years, except for specific uses authorized by regulations. When released into the environment, PCBs can persist for decades because they do not break down through natural processes. Exposure to PCBs has been demonstrated to cause cancer, as well as a variety of other adverse health effects on the immune system, reproductive system, nervous system, and endocrine system.
This settlement is part of EPA’s nationwide enforcement initiative to reduce pollution from mineral processing operations. Because mining and mineral processing facilities have the potential to generate large volumes of toxic and hazardous waste, the agency’s goal is to reduce the risk to human health and the environment by ensuring wastes from these facilities are properly managed.
TIMET, headquartered near Philadelphia, has been supplying nearly one-fifth of the world’s titanium demand since 1950. The company’s Henderson plant, which has been in operation since 1950, is one of the largest industrial facilities in the state. TIMET is a wholly-owned subsidiary of Precision Castparts Corporation, a worldwide manufacturer of complex metal components and products based in Portland, Oregon.
The consent decree, lodged in the U.S. District Court for the District of Nevada, is subject to a 30-day public comment period and approval by the federal court. The consent decree can be viewed at www.justice.gov/enrd/Consent_Decrees.html .
For more information on the settlement: http://www2.epa.gov/enforcement/timet-settlement# # #
Dexter Man Sentenced to 57 Months for Unlawful Possession of A FirearmRead the Press Release
St. Louis, MO – The United States Attorney's Office announced today that QUENTEN T. MARTIN of Dexter, Missouri, was sentenced today to 57 months for one felony count of Being a Previously Convicted Felon in Possession of a Firearm. He appeared before United States District Judge Stephen N. Limbaugh, Jr.
On May 16, 2013, officers responded to the Dexter Hospital in response to a citizen’s report that Martin was outside the hospital and in possession of a firearm. The officers located Martin and observed a .38 caliber Smith & Wesson revolver on the ground near him. Martin was arrested and admitted to the officers that he had thrown the gun down when he saw the officers.
Martin is a previously convicted felon and is prohibited from possessing firearms.
The case was investigated by the Dexter Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorney Larry H. Ferrell handled the prosecution for the Government.
Defendant Ramachandran Vavivello Aka Vicraama Sarada Aka Vic Rama Sentenced Today in District Court of GuamRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that RAMACHANDRAN VADIVELLO aka VICRAAMA SARADA aka VIC RAMA (“VIC RAMA”), was sentenced today in the District Court of Guam by Chief Judge Frances Tydingco-Gatewood, to six months home confinement followed by five years probation. VIC RAMA was also ordered to pay restitution to the victims in this case in the amount of $117,197.29.
Defendant VIC RAMA pled guilty on March 26, 2013, to the offenses of Mail Fraud, in violation of 18 U.S.C. § 1341, Visa Fraud, in violation of 18 U.S.C. § 1546(a), and Conspiracy to Commit Money Laundering, in violation of 18 U.S.C. § 371.
Defendant VIC RAMA is the owner of Transrama Guam, Inc., a construction company on Guam. VIC RAMA petitioned the Guam Department of Labor to hire ten (10) highly skilled H-2B alien workers from Malaysia and Indonesia. VIC RAMA misrepresented to the Guam Department of Labor that the H-2B alien workers would work as heavy equipment mechanics and carpenters on Guam, and that they would be paid the prevailing wage rates. Based on VIC RAMA’S representations, the Department of Labor and the Governor of Guam approved the employment of the H-2B workers. The U.S. Department of Homeland Security, U.S. Citizenship and Immigration Services then issued visas permitting the H-2B workers entry to work on Guam for one year.
Rather than employing the H-2B alien workers as heavy equipment mechanics and carpenters, VIC RAMA assigned the workers to perform manual labor which included irrigation work, landscaping and painting at the Leo Palace Resort. VIC RAMA also withheld full salaries from the alien workers and farmed the workers out to another local construction company, in violation of the terms of their admission to Guam.
U.S. Attorney Limtiaco states, “The U.S. Attorney’s Office is committed to holding accountable those defendants who attempt to erode the public’s trust in our government. Cases involving the abuse of H-2B alien workers and the H-2B approval process, are frauds committed against both local and federal government agencies. The U.S. Attorney’s Office will prosecute these cases and will make all efforts to restore the victim’s losses.”
The investigation was conducted by Special Agents with the U.S. Department of Homeland Security, Homeland Security Investigations, and the Internal Revenue Service – Criminal Investigation Section. The case was handled by Assistant U.S. Attorney Rosetta SanNicolas.
Defendant David Quichocho Uncangco, Jr. Sentenced Today in District Court of GuamRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that DAVID QUICHOCHO UNCANGCO, JR., was sentenced today by Chief Judge Frances Tydingco-Gatewood in the District Court of Guam, to 117 months incarceration followed by five years of supervised release. Defendant was also ordered to pay restitution to Submarina California Subs and Imma Mart.
Defendant UNCANGCO pled guilty on December 11, 2013, to the offenses of Hobbs Act Robbery in violation of Title 18 U.S.C. § 1951, and to Use of a Firearm During a Crime of Violence, in violation of Title 18 U.S.C. § 924(c)(1)(a).
On July 10, 2012, UNCANGCO entered Imma Mart, a retail store in Yigo, Guam. He pointed a silver Smith and Wesson .38 caliber revolver at the cashier and demanded money. The cashier handed over approximately $100 in cash to UNCANGCO who then fled the store. The robbery was captured on video surveillance.
Three days later, UNCANGCO approached a cashier at the Submarina California Subs store in Hagatña. He pointed a Smith and Wesson .38 caliber firearm at the cashier and demanded money. UNCANGCO forcibly took a Bank of Guam money bag containing approximately $1,200 cash and receipts from the cashier. Defendant then fled the scene in a Toyota pickup truck.
Law enforcement recovered the Smith and Wesson .38 caliber firearm, fifty rounds of .38 caliber ammunition and the Bank of Guam money bag from the Toyota pickup truck.
U.S. Attorney Limtiaco states, “The use of firearms to commit violent crimes places innocent civilians and the community at great risk of harm. People who use firearms to commit crimes of violence will face aggressive prosecution and will receive significant jail time.”
U.S. Attorney Limtiaco noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Neighborhood (PSN) Initiative, a nationwide commitment to aggressively prosecute defendants who engage in violent crime, drug distribution and gang involvement. The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Guam Police Department. The case was handled by Assistant U.S. Attorney Rosetta San Nicolas.
Dealer Who Ordered Drugs in the Mail Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. – Eric Dynell McGadney, 36, of Mobile, was sentenced today in federal court to 188 months imprisonment for his activities in arranging for the delivery of 144 pills of MDMA, commonly known as Ecstasy, to Mobile in the mail. Court documents reflect that the package McGadney ordered was identified at the United States Post Office by postal inspectors as suspicious. The postal inspectors arranged for a controlled delivery of the package, coordinating with members of the MCSENT unit, who assisted with surveillance and back-up during the delivery. McGadney had arranged for another subject to accept delivery of the package in a false name, but was present when the delivery was made. When law enforcement officers detained the subject who accepted delivery and McGadney, both were advised of their rights and agreed to answer questions. The subject who accepted delivery identified McGadney as the person who asked him to sign for the package. He consented to a search of the package, and the investigators found the MDMA concealed inside a bottle of children’s vitamins. McGadney told the investigators that the person who accepted delivery of the package for him was not involved in the drug delivery scheme. McGadney admitted that the bottle contained “Molly,” a street term for MDMA (Ecstasy), and that he was to deliver the drugs to another person in Mobile. McGadney pled guilty to the charges of possession with intent to distribute MDMA and use of an interstate facility, in this case the United States mail, to facilitate the commission of a drug trafficking felony in January of 2013.
At the sentencing hearing this morning, United States District Court Judge William H. Steele found that McGadney was a career offender under the United States Sentencing Guidelines, based upon two prior qualifying felony convictions for escape and possession of marijuana in the first degree. The judge ordered that McGadney serve 188 months imprisonment, to be followed by a six-year term of supervised release following the completion of his prison sentence. Judge Steele ordered that McGadney pay $200 in special mandatory assessments, but did not impose a fine.
The case was investigated by the United States Postal Inspection Service, MCSENT, the and the Mobile Police Department. It was prosecuted in the United States Attorney=s Office by Assistant United States Attorney Gloria Bedwell.
Davidson County Woman Sentenced for Filing False Tax Return and Aggravated Identity TheftRead the Press Release
GREENSBORO, N.C. – A Davidson County woman was sentenced to 39 months in prison for filing a false tax return and aggravated identity theft, announced United States Attorney Ripley Rand.
Veronica Levonne Jones, age 40, of Lexington, North Carolina pled guilty on December 2, 2013 and was sentenced on May 13, 2014. Chief United States District Judge William L. Osteen, Jr., sentenced Jones to a total of 39 months in federal prison, ordered her to pay $199,000 in restitution, and imposed one year of supervised released after she leaves prison.
Jones operated Tax Refund Solutions (TRS) in Lexington, North Carolina. During the operation of that business, Jones knowingly falsified her income and used the name and social security of another person on her tax return.
"During tax filing season, return preparers and taxpayers should be aware of the serious consequences facing those who aid or assist in the filing of fraudulent tax returns," said Acting Special Agent in Charge Daniel D. Burget, IRS-Criminal Investigation. "Those who fly in the face of the tax laws face investigation, prosecution, and if convicted, significant prison sentences and substantial fines."
The case was investigated by the Internal Revenue Service-Criminal Investigations and prosecuted by Assistant United States Attorney Stephen Inman.
David Renz Will Not Face A Federal Death Penalty ProsecutionRead the Press Release
SYRACUSE, NEW YORK – The U.S. Department of Justice has declined to authorize a death penalty prosecution against David Renz in connection with a potential federal carjacking charge and the resulting murder of Lori Bresnahan on March 14, 2013, announced United States Attorney Richard S. Hartunian. The death penalty cannot be sought in any federal prosecution without prior written authorization of the Attorney General. Renz will now be sentenced in Onondaga County Court to imprisonment for life without parole based upon his pleas of guilty to first degree murder and predatory sexual assault against a child.1
United States Attorney Richard S. Hartunian stated, “No sentence that could ever be imposed in this case will undo the tragic death of Lori Bresnahan or the pain inflicted on the young victim, or adequately account for the depravity of the crimes committed. The mandatory life sentence in state court and the imposition of an additional 30 year federal consecutive sentence will insure that David Renz can do no further harm.”
All federal criminal prosecutions that carry a potential sentence of death are thoroughly reviewed pursuant to a detailed protocol established by the Department of Justice and involve careful consideration of applicable statutory mitigating and aggravating factors, the federal interest, and all the relevant facts and circumstances. The United States Attorney assembles and analyzes the evidence and applicable law, defense counsel is afforded an opportunity to submit matters in opposition to the death penalty, and the victim’s family is consulted and the views of family members taken into consideration. Following review by the Department’s Capital Case Section, the matter is forwarded to a committee of senior Justice Department lawyers, the Attorney General’s Capital Case Review Committee. The Review Committee then makes its recommendation to the Attorney General, who makes the final decision regarding whether to seek the death penalty.
For further information contact Executive Assistant United States Attorney John G. Duncan at (315)448-0672.
_______________
1On April 10, 2013, an Onondaga County grand jury returned a 37-count indictment that charged Renz with kidnapping, rape, criminal sexual act, murder, and sexual assault related to the attack and murder. On July 17, 2013, Renz entered a plea of guilty in New York State court to first-degree murder and predatory sexual assault against a child, with an agreed-upon sentence of life imprisonment without the possibility of parole. Renz and the Onondaga County District Attorney’s Office agreed that Renz could withdraw his state guilty plea if the federal government sought the death penalty against him.
Criminal Immigration Charges Brought Against Three Illegal AliensRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO), announced today that charges in three unrelated cases have been brought against the following persons by a federal grand jury in Harrisburg:
Santiago Ortiz-Ortiz, age 49, a native and citizen of Mexico in the United States illegally, was charged in a one-count indictment alleging that Ortiz-Ortiz, an alien previously arrested and deported, knowingly and unlawfully reentered the United States. He was located by federal immigration agents in York County, Pennsylvania.
If convicted, Ortiz-Ortiz faces a maximum sentence of up to 10 years of imprisonment and a $250,000 fine.
Claudio Villa-Vera, age 26, a native and citizen of Ecuador in the United States illegally, was charged in a one-count indictment alleging that Villa-Vera, an alien previously been arrested and deported knowingly and unlawfully reentered the United States and was apprehended in York, Pennsylvania.
If convicted, Villa-Vera faces a maximum sentence of up to two years’ imprisonment and a $250,000 fine.
Jose Gonzalez-Sanchez, age 25, a native and citizen of Mexico, in the United States illegally, was charged in a one-count alleging that Gonzalez-Sanchez, an alien previously been arrested and deported knowingly and unlawfully reenter the United States and was apprehended in Franklin, Pennsylvania.
If convicted, Gonzalez-Sanchez faces a maximum sentence of up to two years’ imprisonment and a $250,000 fine.
The investigations were conducted by ICE Enforcement and Removal Operations (ERO) Philadelphia and are being prosecuted by Special Assistant United States Attorney Brian G. McDonnell.
Conway Business Owner Pleads Guilty to Structuring A Financial TransactionRead the Press Release
LITTLE ROCK, AR – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; Christopher A. Henry, Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office; announced that Patrice Duncan, age 59, of Conway, pled guilty May 5, 2014, before United States District Judge Jay Moody. Duncan pled guilty to one count of structuring a financial transaction, of more than $10,000 in cash to evade the reporting requirements banks have to report to the United States Treasury when there is a cash deposit of more than $10,000.
“Structuring financial transactions to avoid currency reporting requirements is a criminal violation of federal law under the Bank Secrecy Act (BSA). Deliberately avoiding BSA requirements is a form of money laundering that will be vigorously investigated by IRS Criminal Investigation.”
Patrice Duncan was indicted by a federal grand jury on September 5, 2012 on 21 counts of structuring financial transactions. She pled to Count 21 of the Indictment. The remaining counts against Duncan were dismissed. Patrice Duncan is one of the owners of Duncan Outdoor in Conway. In September and October 2011, an undercover (UC) agent of the IRS-Criminal Investigations went to Duncan Outdoor and purchased a motorcycle with cash. The undercover agent, who was wearing a recording device, discussed paying in cash so that the bank and government would not know of the transaction. Patrice Duncan was recorded discussing with the UC agent that she would not deposit all the money at one time so that the bank wouldn’t fill out the forms that document transactions over $10,000. On October 25, 2011, Duncan deposited $9,400 cash from the UC agent’s purchase. A few days later, on October 28, 2011, Patrice Duncan deposited the remaining $2,000 cash from the UC agent’s purchase.
Structuring has a statutory maximum of not more than five years in prison and/or not more than a $250,000 fine followed by not more than three years of supervised release.
A sentencing date will be set by the Court at a later date. Gary Duncan, Patrice Duncan’s husband, was also indicted on the structuring charges. His trial will be continued.
The maximum sentence for bank fraud is not more than 30 years imprisonment, not more than a $1,000,000 fine and/or not more than five years of supervised release.
The case was investigated by special agents from the IRS-Criminal Investigations. The case is being prosecuted by First Assistant United States Attorney Pat Harris.
Carbondale Man Charged with Firearm OffenseRead the Press Release
Follow @SDILNewsOn May 6, 2014, a federal grand jury returned a one-count indictment charging Travis D. Bailey, 30, of Carbondale, Illinois, with Possession of a Firearm by a Felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. On May 13, 2014, Bailey made his initial appearance in federal court in Benton. Bailey is currently being held without bond pending a July 14, 2014, jury trial.
The offense occurred on March 7, 2014, in Carbondale, Jackson County. The firearm offense carries a penalty of up to 10 years in federal prison, to be followed by 3 years of supervised release, and a fine of $250,000.
Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Carbondale Police Department. The Jackson County State’s Attorney’s Office also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
California Woman Sentenced to Seven Years in Prison for Sixteen Million Dollor Mortgage Fraud SchemeRead the Press Release
PENSACOLA, FLORIDA – United States Attorney Pamela C. Marsh announced the sentencing today of Andrea Lorraine Avery, 47, of Los Angeles, California, following acceptance of her guilty plea in December of last year. Avery pleaded guilty to seven counts that included: conspiracy to commit fraud, five counts of mail fraud affecting a financial institution, and conspiracy to commit money laundering. Avery was sentenced to 84 months in prison and ordered to pay restitution in the amount of $10,323,369 to the FDIC as Receiver for Washington Mutual, GMAC Mortgage, SunTrust Mortgage, Wells Fargo Bank, USBank, and others.
Avery admitted that beginning in 2005 and continuing through 2008, she and others entered into contracts to purchase twenty-four residences located in Florida, Georgia, Louisiana, Texas, and California. As a part of the fraudulent scheme, numerous properties located in the Northern District of Florida were purchased, which included homes in Navarre, Santa Rosa Beach, and Panama City. Thereafter, fraudulent loan applications were submitted to financial institutions to fund the purchases. In the loan applications, Avery and other borrowers made false statements to the lenders, which included: providing false names and social security numbers; overstating the borrower’s income and assets; and falsely stating the earnest money deposit was not borrowed. In support of the loans, Avery and other borrowers submitted fraudulent supporting documents to the lenders, which included: false pay-stubs, false W-2s, false verifications of employment, and false documentation concerning the borrower’s credit. Approximately $16 million in loans were issued by the lenders in connection with the fraudulent scheme. Avery and her company received more than $3.5 million in kickbacks as a result of the scheme.
The charges are the result of an investigation by the Florida Department of Law Enforcement, the Internal Revenue Service – Criminal Investigation, and the Federal Bureau of Investigation. This case was prosecuted by Assistant U.S. Attorney Tiffany H. Eggers.
California Man Pleads Guilty to Online Enticement of A West Michigan ChildRead the Press Release
GRAND RAPIDS, MICHIGAN – Joseph Arpin, 34, pled guilty yesterday in federal court to online enticement of a West Michigan child. Arpin stated at the plea hearing that he met the 12-year-old victim online, he assumed a false identity to entice her, and he moved across the country from California to Michigan to start a sexual relationship with her. Arpin faces a minimum prison term of 10 years, up to a maximum term of life. His sentencing hearing is set for September 3, 2014.
In addition to the online enticement from July to October 2013, the indictment also charged Arpin with traveling from California to Allegan County, MI, to engage in illicit sexual conduct with the child and then transporting her from Michigan to Missouri for the purpose of engaging in criminal sexual conduct. He was arrested in Missouri on October 22, 2013, and has been in custody ever since. In exchange for the plea to online enticement, the government agreed to dismiss the other two counts. Neither of the dismissed counts carried a higher possible penalty than the online enticement count to which Arpin pled guilty.
“We will make every effort to investigate, locate, and prosecute predators who use the internet to lure children into danger,” said U.S. Attorney Patrick Miles.
The charges are the result of an investigation conducted by the Federal Bureau of Investigation (FBI), the Allegan County Sheriff’s Office, the Holland Police Department, and the St. Louis County Police Department. Assistant United States Attorney Tessa K. Hessmiller is the prosecutor on the case.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney's Office; county prosecutor's offices; the Internet Crimes Against Children task force (ICAC); and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate communities about the dangers of online child exploitation and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement.
END
Bullhead Woman Sentenced for Assaulting, Resisting and Impeding A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bullhead, South Dakota, woman convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on May 12, 2014, by U.S. District Judge Charles B. Kornmann.
Darla Yellow Earrings, age 49, was sentenced to 16 months of custody, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Yellow Earrings was indicted by a federal grand jury on August 21, 2013. She pled guilty on November 18, 2013.
The conviction stems from an incident which happened on or about July 14, 2013, when an officer responded to assist another officer in locating a maroon colored Chevrolet Tahoe that was reportedly involved in a hit and run earlier that day. When the assisting officer entered the Bullhead community, he observed the Tahoe, driven by Yellow Earrings, and it was approaching his position at a high rate of speed. At the same time, the other officer’s vehicle was in pursuit of the Tahoe, and had its emergency lights activated. The assisting officer also activated his lights and sirens in an attempt to stop the vehicle. As the Tahoe continued towards the assisting officer, the vehicle crossed into his lane, still at a high rate of speed, and the officer had to accelerate rapidly and swerve to avoid being struck. The Tahoe refused to slow down and both officers joined in the pursuit and followed it to a private residence. Once the vehicle had stopped, they were able to place Yellow Earrings in custody.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Yellow Earrings was immediately turned over to the custody of the U.S. Marshals Service.
Bullhead Woman Sentenced for Assaulting, Resisting and Impeding A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, man charged with Failure to Appear pled guilty and was sentenced on May 13, 2014, by U.S. Magistrate Judge Mark A. Moreno.
David Andrews, age 33, was sentenced to 6 months of custody to be served consecutive to the sentence imposed in another federal case, and a $25 special assessment to the Federal Crime Victims Fund.
Andrews was indicted on July 18, 2012, for Possession with Intent to Distribute a Controlled Substance. He appeared with his attorney in front of U. S. Magistrate Judge Mark Moreno on August 6, 2012, and was detained.
On February 21, 2013, Andrews pled guilty to a Superseding Information charging him with Possession of a Controlled Substance. During the change of plea hearing, Andrews was notified that sentencing was scheduled for Monday, May 6, 2013, at the U.S Courthouse in Pierre. Following the change of plea hearing, Andrews was released on a Personal Recognizance Bond pending sentencing. He signed the Order Setting Conditions of Release on February 22, 2013, indicating he understood that failure to appear for court could lead to prosecution, and that he needed to appear as directed by the Court.
Andrews failed to appear on May 6, 2013, as directed, and the Court noted his absence at the sentencing hearing. The District Court allowed Andrews an additional 24 hours to appear, but he failed to do so. His whereabouts were unknown until February 19, 2014, when he was arrested in Sioux Falls.
The investigation was conducted by the U.S. Marshals Service. The case was prosecuted by Assistant U.S. Attorney Jay Miller.
Andrews was remanded to the custody of the U.S. Marshals Service.
Buffalo Man Charged with Social Security FraudRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr., announced today that Ari Elias Baum, 29, of Buffalo, N.Y., was arrested and charged by criminal complaint with making a false statement to the Social Security Administration (SSA) and withholding material information from the agency concerning his eligibility to receive disability benefits. Each charge carries a maximum penalty of five years in prison and a fine of up to $250,000.
Assistant U.S. Attorney Paul J. Campana, who is handling the case, stated that according to the complaint, in 2010, the defendant’s Social Security benefits were discontinued after it was determined Baum was outside the United States for a period exceeding 30 consecutive days. The complaint alleges that in December 2010 and again in March 2013, Baum was advised of his obligation to report to the SSA if he was outside the United States for 30 or more consecutive days.
According to border crossing records, the defendant was outside of the country continuously from March 22, 2013, until August 13, 2013. When contacted by the SSA on December 91, 2013, Baum failed to mention this to the agency. The complaint alleges that Baum left the United States again on January 1, 2014, and did not return until May 13, 2014. The defendant’s absence from the United States resulted in an overpayment of Social Security benefits exceeding $6,400.
Baum made an initial appearance on May 13, 2014 before U.S. Magistrate Judge Jeremiah J. McCarthy, who ordered the defendant detained pending a detention hearing scheduled for Thursday, May 15, 2014, at 1:30 pm.
The fact that a defendant has been charged with a crime is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.
The complaint is the result of an investigation on the part of the United States Social Security Administration, Office of the Inspector General, under the direction of Special Agent-in-Charge Edward J. Ryan and the Federal Bureau of Investigation.Brunswick Man Convicted of Illegally Receiving $3 Million in Credit Union CollapseRead the Press Release
A Brunswick man was convicted of 14 counts related to illegally receiving more than $3 million from the St. Paul Croatian Federal Credit Union in exchange for cash payments to the credit union’s chief operating officer, law enforcement officials said.
Svetislav Vujovic, 41, is scheduled to be sentenced on August 19.
Following a weeklong trial in U.S. District Court in Cleveland, a jury convicted Vujovic on all 14 counts – 10 counts of making false statements to a federal credit union, two counts of money laundering and one count each of financial institution fraud and giving gifts for procuring loans.
The credit union was closed and then liquidated in 2010 after sustaining losses of approximately $170 million, making it one of the largest credit union failures in American history. Nearly 20 people have been convicted of crimes related to fraudulent lending that resulted in the credit union’s failure.
“The failure of the credit union was a tragedy for this community,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “We will make sure all those responsible for its failure will be held accountable.”
Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Field Office, said: “The St. Paul Federal Credit Union collapse resulted in one of the largest credit union failures ever investigated in U.S. history. This complex, large-scale investigation transcended international borders and will continue until all those involved are brought to justice.”
“Honest and law-abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money,” said Special Agent in Charge Kathy Enstrom, IRS Criminal Investigation, Cincinnati Field Office. “Let this conviction stand as a warning to those who victimize the public that whether you are the main perpetrator of a fraud, or assist in its facilitation, the law will hold all guilty parties accountable.”
Vujovic, aided and abetted by Anthony Raguz, the former Chief Operating Officer of Eastlake-based St. Paul Croatian Federal Credit Union, received numerous fraudulently obtained loans totaling approximately $3 million from the credit union between 2004 and 2008, according to court documents and trial testimony.
Vujovic obtained these loans by making false representations and promises, and he received many of those loans after having already defaulted on previous loans issued to him by the credit union. These loans were obtained in the names Cleveland Comfort Corp; SND, Inc.; Balkan Contracting; GBRS Properties, LLC; and Balkan Enterprise, Inc. The credit union lost approximately $3 million as a result of Vujovic’s fraudulent conduct.
Vujovic corruptly gave Raguz cash payments totaling approximately $20,000 to induce and reward Raguz for approving and facilitating the approval of the fraudulent loans to Vujovic, , according to court documents and trial testimony.
Raguz is currently serving a 14-year federal prison sentence.
This case is being prosecuted by Assistant U.S. Attorney Bridget M. Brennan and United States Attorney Steven M. Dettelbach following an investigation by the Cleveland Offices of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division.
Brian Leon Guerrero Sentenced in the District Court of GuamRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that Defendant BRIAN LEON GUERRERO, age 25, from Tamuning, was sentenced on May 13, 2014, in the District Court of Guam by Chief Judge Ramona Manglona, for the offense of Dealing in Counterfeit United States Obligations and Securities, for his role in passing a counterfeit fifty dollar bill on October 24, 2013. LEON GUERRERO was sentenced to a three-year probationary period, and ordered to get substance abuse treatment and obtain a high school diploma or GED. Defendant was also ordered to pay $500 restitution, a $100 special assessment fee, and to perform 200 hours of community service. Three co-defendants remain to be sentenced.
Credit for the investigation of this case is given to the U.S. Secret Service, Guam Police Department and the Micronesia Mall Security. The case was prosecuted by Assistant U.S. Attorney Clyde Lemons.
Bradley and Old Town Residents Plead Guilty to Bath Salt Distribution ConspiracyRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Gina
Nelson, 31, of Bradley, Maine and Michael Tardiff, a/k/a “Bub”, 54, of Old Town, Maine
pleaded guilty today in U.S. District Court in Bangor to conspiracy to possess with the intent to
distribute and to distribute MDPV, a chemical compound commonly referred to as “bath salts” or
“monkey dust”.According to court records, the members of the conspiracy illegally distributed MDPV in
Penobscot County and elsewhere between April and December 2011. The defendants obtained
MDPV from other members of the conspiracy and traded, sold or otherwise distributed it using
cellular telephones and other means of communication.
The defendants face up to 20 years in prison, a $1,000,000 fine, or both. They will be
sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The defendants are two of fourteen defendants charged by indictment as part of the
conspiracy. An indictment is merely an accusation and a defendant is presumed to be innocent
until proven guilty in a court of law.
Co-defendants Elizabeth Mikotowicz, a/k/a “Beth,” Steven Orosco, a/k/a “Pablo,” Alan
Alan Ketchen, a/k/a “AJ,” Daniel Hines, Adam Hathorn, and Tina Keaton, a/k/a “Fumble,” all of
Bangor; Jessica Bryden, of Greenbush, Maine; and Matthew Tardiff, of Old Town, Maine;
previously pled guilty to the conspiracy charge and await sentencing.
The case was investigated by the Maine Drug Enforcement Agency with assistance from
the U.S. Drug Enforcement Administration and the Bangor Police Department.Benjamin Dwayne Swiger Sentenced to Serve Twenty Years in Prison for Distributing Child PornographyRead the Press Release
GREENEVILLE, Tenn.- Benjamin Dwayne Swiger, 28, of Gray, Tenn., was sentenced to serve 20 years in prison by the Honorable J. Ronnie Greer, U.S. District Judge. Upon his release from prison, Swiger will serve a life term of supervised release with special conditions. Swiger pleaded guilty in January 2014 to a federal indictment charging him with distributing child pornography.
The indictment and subsequent conviction of Swiger was the result of an investigation conducted by the Federal Bureau of Investigation and Washington County Sheriff’s Office. Assistant U.S. Attorney Helen Smith represented the United States.
William C. Killian, U.S. Attorney for the Eastern District of Tennessee said, "This case represents the continuing commitment of the U.S. Attorney's Office to prosecute those who distribute images of children being sexually exploited."
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Attorney General Holder Criticizes Excessive Use of <br /> Solitary Confinement for Juveniles with Mental IllnessRead the Press Release
WASHINGTON—Speaking in a video message posted on the Justice Department’s website, Attorney General Eric Holder on Wednesday called for an end to the excessive use of solitary confinement for youth that suffer from mental illness. Attorney General Holder said the practices can have lasting, substantial effects on young people that could result in self-harm or, in some cases, even suicide.
“Solitary confinement can be dangerous, and a serious impediment to the ability of juveniles to succeed once released,” Attorney General Holder said. “At a minimum, we must work to curb the overreliance on seclusion of youth with disabilities.”
As a result of these unhealthy practices that violate the Violent Crime Control and Law Enforcement Act and the Civil Rights of Institutionalized Persons Act (CRIPA), the Justice Department’s Civil Rights Division sought a federal court order temporarily restraining the Ohio Department of Youth Services (DYS) from unlawfully secluding boys with mental health needs in its juvenile correctional facilities.Last February, the Civil Rights Division also took the rare but necessary step of filing a statement of interest addressing the use of excessive reliance on solitary confinement for disabled youth in Contra Costa County, California. Young people in these detention centers, including those with disabilities, were allegedly held in solitary confinement for up to 23 hours a day, often with no human interaction at all.
The complete text of the Attorney General’s video message is below:
“Across the country, far too many juvenile detention centers see isolation and solitary confinement as an appropriate way to handle challenging youth, in particular youth with disabilities. But solitary confinement can be dangerous, and a serious impediment to the ability of juveniles to succeed once released.
“In a study released last year by the Office of Juvenile Justice and Delinquency Prevention, 47 percent of juvenile detention centers reported locking youth in some type of isolation for more than four hours at a time. We have received reports of young people who have been held in solitary confinement for up to 23 hours a day, often with no human interaction at all. In some cases, children were held in small rooms with windows that were barely the width of their own hands.
“This is, to say the least, excessive. And these episodes are all too common.
“This practice is particularly detrimental to young people with disabilities – who are at increased risk under these circumstances of negative effects including self-harm and even suicide. In fact, one national study found that half of the victims of suicides in juvenile facilities were in isolation at the time they took their own lives, and 62 percent of victims had a history of solitary confinement.
“Let me be clear, there may be times when it becomes necessary to remove a detained juvenile from others in order to protect staff, other inmates, or the juvenile himself from harm. However, this action should be taken only in a limited way where there is a valid reason to do so, and for a limited amount of time; isolated juveniles must be closely monitored, and every attempt must be made to continue educational and mental health programming while the youth is in isolation.
“At a minimum, we must work to curb the overreliance on seclusion of youth with disabilities. And at the Department of Justice, we are committed to working with states to do this going forward.“We must ensure in all circumstances – and particularly when it comes to our young people – that incarceration is used to rehabilitate, and not merely to warehouse and forget. Our nationwide effort to end the unnecessary or excessive seclusion of youth with disabilities will not be completed solely with one settlement or court filing. But as a department, we are dedicated – and as Attorney General, I am committed – to doing everything possible to ensure the effectiveness and integrity of our criminal and juvenile justice system. In the days ahead, we will continue to make good on our commitment to the best practices of law enforcement and the highest ideals of our nation.”
The full video message is available at http://www.justice.gov/agwa.php.
Army Colonel Charged Federally with Possession and Distribution of Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg today indicted Colonel Robert J. Rice, 56, of Carlisle, for possession and distribution of child pornography over the internet. Rice is a Colonel in the U.S. Army stationed at the U.S. Army War College in Carlisle.
According to U.S. Attorney Peter Smith, the charges stem from an investigation by the Cumberland County District Attorney’s Office with assistance from the U.S. Army Criminal Investigation Division and the U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI).
The Cumberland County District Attorney’s Office, conducted the initial investigation and is cooperating with federal authorities in this case. The case is being prosecuted by Assistant United States Attorney James T. Clancy.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
If convicted of both offenses, Rice faces up to 30 years in prison and fines of $500,000. The possession offense carries a maximum jail sentence of ten years and a maximum fine of $250,000. The distribution offense carries a mandatory minimum five-year jail sentence and a maximum jail sentence of twenty years along with a maximum fine of $250,000.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Armed Robber of A Garda Armored Car Warehouse Sentenced to Thirty Two Years ImprisonmentRead the Press Release
SAN FRANCISCO – Monico Dominguez was sentenced today to thirty two years imprisonment, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
Dominguez, of Santa Rosa, was indicted by a federal grand jury on Nov. 29, 2012 and was charged with of one count of robbery, one count of attempted robbery, two counts of conspiring to commit robbery, two counts of possession of a firearm in furtherance of a crime of violence, three counts of money laundering, and one count of structuring. Dominguez was found guilty by a jury on Feb. 24, 2014. The jury found that on Aug. 11, 2011, Dominguez committed an armed robbery of the Garda Cash Logistics warehouse in Santa Rosa, Calif., that he laundered and structured the substantial cash proceeds from that robbery, and that he attempted to commit a second robbery at that same facility on Aug. 6, 2012. The guilty verdict followed a two week jury trial before the Honorable Edward M. Chen, United States District Court Judge.
Evidence at trial showed that on Aug. 11, 2011, Dominguez and an accomplice dove under the closing garage door of the Garda warehouse as an armored car was returning from the night shift, that Dominguez held up the guards with an AK-47 assault rifle before tying them up and entering the vault. Dominguez stuffed just over $909,000 in cash into a duffel bag before fleeing the scene. Dominguez got away with this heist for approximately one year, during which he opened new bank accounts, made substantial cash deposits, and purchased multiple Harley Davidson motorcycles, cars, and expensive construction equipment. The evidence at trial showed that on August 6, 2012, Dominguez set in motion a plan to steal an armored car from the Garda warehouse, but the robbery was foiled before it could happen with the assistance of a confidential informant who had reported Dominguez’s plan to the Federal Bureau of Investigation and Santa Rosa Police Department.
The sentence was handed down by the Edward M. Chen, United States District Court Judge in San Francisco. Judge Chen also sentenced the defendant to a 3 year period of supervised release, $907,000 in restitution to Garda, and a $100 special assessment.
Assistant U.S. Attorneys Randy Luskey and Ben Tolkoff prosecuted this case with the assistance of Daniel Charlier-Smith and Christine Tian. This prosecution is the result of a joint investigation by the Federal Bureau of Investigation and the Santa Rosa Police Department.(Dominguez superseding indictment )
15 Charged in ‘Bustout’ Scheme That Cost Victim Banks $15+ MillionRead the Press Release
LOS ANGELES – Authorities this morning arrested 12 people and are seeking the whereabouts of three others who are charged in a large-scale, bank account “bustout” scheme that victimized major financial institutions across Southern California, costing banks at least $15 million.
This morning’s arrests are the result of “Operation Check Kkang,” a multi-agency investigation into a bustout scheme that victimized financial institutions such as Bank of America, JPMorgan Chase, U.S. Bank and Wells Fargo Bank. Check Kkang refers to a Korean term that describes check kiting.
The investigation was jointly conducted by special agents with the Federal Bureau of Investigation and IRS - Criminal Investigation, and officers with the Pomona Police Department. Other law enforcement agencies provided substantial assistance.
Those arrested this morning are among 15 defendants named in a 26-count indictment that describes a bustout scheme in which the members of the conspiracy deposited bogus checks and immediately withdrew funds from the account. Once the financial institution realized that the check is fraudulent and dishonored the deposit, the account was “busted.”
The indictment, which was returned by a federal grand jury on May 7 and unsealed this morning, describes a scheme that allegedly started in February 2010 and continued until last October 2013. Those named in the indictment are:
Jae Ho Chung, 44, of Los Angeles (Westwood);
Michael Yeon Cho, 30, of Pacific Palisades;
Roger Lee, 48, of Cerritos;
Kun Young Lee, 51, of Los Angeles (Koreatown);
Jeong Gu Kim, 53, of Los Angeles;
Hak Soo Shim, 40, of Newport Beach;
Renling “Mark Ling” Chao, 50, of Los Angeles (Brentwood);
Il Hwan Jae, 60, of Los Angeles (Koreatown);
Erick Palafox, 28, of ; of Lynwood
Jae Kwon An, 42, of Riverside;
Joonie Yeon Cho, 42, of Los Angeles (Koreatown);
Eun Ah Kim, aka Eun Ae Kim, 39, of Los Angeles;
Hye Ran Lee, 30, of Irvine;
Hee Jung Lee, 41, of Riverside; and
Woo Chang Lim, 36, of Ventura.
Twelve of the defendants were arrested today. Jae Ho Chung, Roger Lee, and Hye Ran Lee are considered fugitives. Those taken into custody are expected to be arraigned on the indictment this afternoon. The arraignments will take place in federal courthouses in Los Angeles, Riverside and Santa Ana, with locations for specific hearings to be determined by where an individual defendant was arrested.According to the indictment, Chung and Cho were “processors” who fabricated or hired others to make fictitious checks for the purpose of conducting bustouts. The bogus checks ranged in amounts from $2,300 to more than $28,000.
Defendants R. Lee, K.Y. Lee, J.G. Kim, and Shim were “brokers,” according to the indictment that accuses them of soliciting people with legitimate bank accounts who would lend their accounts to be busted-out in exchange for a fee. The brokers allegedly found bank customers by placing advertisements in Korean-language newspapers,
Defendants Chao, Jae, Palafox, An, J.Y. Cho, E.A. Kim, H.R. Lee, H.J, Lee, and Lim were “runners” or “washers” who allegedly deposited fictitious checks into, and then withdraw funds from, the account to be busted-out. Runners and washers used funds from the bustouts to purchase goods, services and gift cards, according to the indictment.
All 15 defendants are charged with conspiracy to commit bank fraud and bank fraud. The indictment also contains an asset forfeiture allegation in which the government will seek to forfeit any property derived from the proceeds of the scheme in the event of any defendant’s conviction. If convicted of the two counts in the indictment, each defendant would face a statutory maximum penalty of 60 years in federal prison.
The Check Kkang investigation was conducted jointly by the FBI; IRS - Criminal Investigation, and the Pomona Police Department.
The following agencies provided assistance: U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Secret Service, the Los Angeles Police Department, the United States Postal Inspection Service, the Social Security Administration, the Los Angeles County Sheriff’s Department, the Ventura County Sheriff’s Department, the Riverside County Sheriff’s Department, the Glendale Police Department, the Burbank Police Department, the Beverly Hills Police Department, the Santa Ana Police Department, and the Los Angeles County Department of Child and Family Services.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
Release No. 14-062
Tuesday 13 May 2014
Woodstock, Vermont Restaurant the Prince and the Pauper Takes Steps to Comply with the Americans with Disabilities ActRead the Press Release
The United States Attorney’s Office for the District of Vermont announces that the owners of The Prince and the Pauper restaurant and the building in which it is located at 24 Elm Street Woodstock, Vermont have agreed to complete specific modifications to come into compliance with Title III of the Americans with Disabilities Act (“ADA”). Title III of the ADA prohibits a public accommodation from denying an individual or a class of individuals, on the basis of a disability, the opportunity to participate in or benefit from the goods, services, facilities, or accommodations of an entity. Title III requires a public accommodation to remove architectural barriers to access in existing facilities where it is readily achievable to do so. The United States Attorney’s Office’s investigation began following a complaint made to the Vermont Human Rights Commission regarding the accessibility of The Prince and the Pauper.
An onsite survey of The Prince and the Pauper performed by United States Department of Justice architects revealed ADA compliance issues related to the restaurant’s entrance, route from the entrance to the bar and dining areas, the bar and dining areas, and the toilet rooms. The Prince and the Pauper will remedy the agreed upon ADA compliance issues by May 31, 2014.
The Prince and the Pauper’s owners and the owner of the building in which the restaurant is located recognized their obligation to address the issues identified in the onsite survey. Vincent Talento, Christopher Balcer, and Don Bourdon are to be commended for their cooperation with the Office of the United States Attorney.
The Office of the United States Attorney for the District of Vermont worked in partnership with Tracey Tsugawa of the Vermont Human Rights Commission in addressing and resolving these important civil rights issues. Assistant United States Attorney Nikolas P. Kerest, with assistance from the Disability Rights Section of the Civil Rights Division of the Department of Justice, handled this matter on behalf of the United States and is working with other Vermont businesses to resolve their ADA compliance issues. Further information on the ADA and its requirements may be found at www.ada.gov.
Winter Park Attorney Pleads Guilty to Tax EvasionRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Richard R. Baker (47, Winter Park) today pleaded guilty to tax evasion. Baker faces a maximum penalty of five years in federal prison, and a $250,000 fine. His sentencing hearing has not yet been scheduled.
According to court documents, Baker has been licensed to practice law in Florida since 1993. In the late 1990s or early 2000s, Baker began to focus his practice on bankruptcy law and started managing and operating his own law office, which was known as the Law Offices of Richard R. Baker.
As a result of his position as an attorney, his training in the law, and his expertise in bankruptcy law, Baker knows that individuals are required to file personal federal tax returns. Despite that knowledge, he failed to timely file his personal federal tax returns from at least 1995 to 2008. From 2002 to 2008, Baker’s total adjusted gross income was approximately $991,008. Because of the amount of gross income that he earned in each of those years, Baker was required by law to file personal tax returns.
In an attempt to evade paying his income taxes, Baker submitted extensions to the Internal Revenue Service for his 2007 and 2008 tax returns. He falsely represented that he owed $0 in taxes. In addition, Baker claimed more allowances than he was allowed for his federal withholding, and he failed to mail to the IRS the W-2 forms that had been prepared for him and the other employees at his business.
On several occasions, Baker was advised that he needed to file his personal and corporate federal tax returns. In October 2009, Baker’s accountant prepared his personal returns for 2002 to 2008. Baker, however, did not file any of those returns at that point. Rather, he continued with his efforts to prevent the IRS from being able to investigate him, which included the submission of a false Collection Information Statement to the IRS, in November 2009, that misrepresented the number of exemptions that he had claimed on his withholding and that omitted two bank accounts controlled by him, containing thousands of dollars. The total amount of unreported income for Baker for 2002 to 2008 was approximately $991,008. The total tax loss for those years is approximately $160,348, which Baker has agreed to pay to the IRS as restitution.
This case was investigated by the Internal Revenue Service -- Criminal Investigation Division. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.
Wheeling Man Sentenced to 101 Months on Drug and Gun ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WV – A Wheeling man who was selling cocaine and heroin from a local hotel was sentenced by Judge Frederick P. Stamp, Jr.
United States Attorney William J. Ihlenfeld, II, announced that Dale A. DAVIS, also known as “Big Loc”, age 36, was sentenced to 101 months in prison for “Possession with Intent to Distribute Crack Cocaine” and “Possession of a Firearm in Furtherance of a Drug Trafficking Offense.” In August of 2013 the Ohio Valley Drug Task Force utilized an informant to make controlled purchases of cocaine and heroin from DAVIS at the Knights Inn (formerly the Wheeling Inn) on Main Street in Wheeling. After the controlled purchases were made the Task Force obtained a search warrant for the hotel room and DAVIS was found to have a 9mm pistol, cocaine, heroin, and approximately $2,400 in cash.
DAVIS was remanded to the custody of the United States Marshal pending designation to a Federal institution. The case was prosecuted by Ihlenfeld.
In other court proceedings before Chief Judge John Preston Bailey, Ihlenfeld announced that:
Scott D. MCDONOUGH, age 50, of Martinsburg, West Virginia, was sentenced to 41 months in prison for his conviction of “Felon in Possession of Firearms.” MCDONOUGH agreed to abandon his interest in 22 firearms. MCDONOUGH, who is free on bond, will self-report to the designated Federal institution on June 5, 2014. This case was prosecuted by Assistant United States Attorney Jarod J. Douglas and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
James CASIMIRO, III, age 37, of Ranson, West Virginia, was sentenced to 6 months in prison for the “Distribution of Oxycodone.” CASIMIRO, a former assistant county prosecutor admitted to obtaining the painkillers from a cancer patient and then selling them for profit. The investigation involved the use of a confidential informant who made purchases of oxycodone tablets from CASIMIRO in May and June of 2013, a time period during which he was still employed as a prosecutor.
This case was investigated by the Federal Bureau of Investigation and the Eastern Panhandle Drug & Violent Crimes Task Force. It was prosecuted by Assistant U.S. Attorney Paul T. Camilletti.
Waterloo Felon Convicted of Possessing Sawed-Off ShotgunRead the Press Release
A man who possessed a sawed-off shotgun was convicted by a jury today after a two-day trial in federal court in Cedar Rapids.
Patrelle Jose Green-Bowman, age 21, from Waterloo, Iowa, was convicted of possessing a firearm as a felon and possessing an unregistered sawed-off shotgun. Green-Bowman was acquitted of possessing ammunition as a felon. The verdict was returned this afternoon following about three hours of jury deliberations.
The evidence at trial showed that on August 2, 2013, Green-Bowman was found by Waterloo Police Department officers in the backseat of a car parked at an apartment complex in Waterloo. A sawed-off shotgun was found on the seat immediately behind where Green-Bowman had been sitting. The sawed-off shotgun was wrapped in Green-Bowman’s coat.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Green-Bowman remains in custody of the United States Marshal pending sentencing. Green-Bowman faces a possible maximum sentence of 10 years’ imprisonment on each count, $500,000 in fines, $200 in special assessments, and up to three years of supervised release on each count following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Dan Chatham and was investigated by the Waterloo Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-CR-02023-LRR.
Veteran Federal Prosecutor Julie B. Porter Takes Helm of U.S. Attorney’s Office’s Criminal DivisionRead the Press Release
CHICAGO ― Julie B. Porter, a 10-year veteran of the U.S. Attorney’s Office who has supervised financial fraud and child exploitation cases and participated in significant trials involving corporate fraud and public corruption, has become the chief of the office’s criminal division, Zachary T. Fardon, United States Attorney for the Northern District of Illinois, announced today.
Ms. Porter succeeds Manish S. Shah, who served as criminal chief for two years and was confirmed on April 30 by the U.S. Senate to be a judge on the U.S. District Court bench in Chicago. Prior to Ms. Porter’s appointment, which took effect on Friday, she was chief of the office’s financial fraud section.
“Julie is a great lawyer, a wonderful human being, and a prosecutor with deep understanding and real love for this office and what we do,” Mr. Fardon said.
The chief of the criminal division is third in the chain of command overseeing criminal prosecutions, following the U.S. Attorney and the First Assistant. Just over 120 of the office’s 152 attorneys are assigned to the criminal division, while the remaining attorneys are assigned to the civil division and the western division in Rockford.
Ms. Porter, 41, joined the U.S. Attorney’s Office in 2004. In 2009, she received a Justice Department award for being a leader and role model as a federal prosecutor from the Director of the Executive Office for United States Attorneys. Ms. Porter played a key role as a member of the prosecution teams in the corporate fraud trial of Conrad Black and other executives of the Hollinger International newspaper publishing company, and in multiple public corruption cases involving the City of Chicago’s Hired Truck program and Operation Board Games.
Ms. Porter is a graduate of Williams College and the University of Michigan Law School. In 2007, she was recognized in the “40 under 40” feature in Crain’s Chicago Business.
Union Officials Plead Guilty to Extortion Conspiracy Involving Christmastime Tribute PaymentsRead the Press Release
NEWARK, N.J. - Three former International Longshoremen’s Association (ILA) union officials admitted today that they conspired to extort ILA Local 1235 longshoremen on the New Jersey piers for Christmastime tribute payments, New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Vincent Aulisi, 82, of West Orange, N.J., the president of ILA Local 1235 from approximately 2006 through 2007; Thomas Leonardis, 56, of Glen Gardner, N.J., the president of the union from approximately 2008 through 2011 and former ILA representative; and Robert Ruiz, 55, of Watchung, N.J., the delegate of the union from approximately 2007 through 2010 and former ILA representative, pleaded guilty today to conspiring to extort Christmastime tributes from ILA Local 1235 members – count three of the second superseding indictment against them. Aulisi, Leonardis and Ruiz entered their guilty pleas before U.S. District Judge Claire C. Cecchi in Newark federal court.
According to documents filed in this case and statements made in court:
During their guilty plea proceedings, Aulisi, Leonardis and Ruiz admitted that they conspired with each other and others to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation. Leonardis and Ruiz were suspended from their positions following their arrest in January 2011. Aulisi had already retired from his employment on the New Jersey piers at the time of his arrest.
Charges are still pending against eight defendants in the superseding indictment, including a racketeering conspiracy charge against Stephen Depiro, 58, of Kenilworth, N.J. – a soldier in the Genovese organized crime family of La Cosa Nostra. Since at least 2005, Depiro has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235, and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235.
Two of the three remaining Genovese family associates are former union officials: Albert Cernadas, 78, of Union, N.J., the president of ILA Local 1235 from approximately 1981 to 2006 and former ILA Executive vice president; and Nunzio LaGrasso, 63, of Florham Park, N.J., the former vice president of ILA Local 1478 and former ILA Representative. The third, Richard Dehmer, 78, of Springfield, N.J., is charged with illegal gambling conduct unrelated to the waterfront extortions.
The charge to which Aulisi, Leonardis and Ruiz pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is currently scheduled for Sept. 4, 2014, for Ruiz and Sept. 9, 2014, for Aulisi and Leonardis.
U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.
The charges and allegations against the remaining defendants are merely accusations and they are considered innocent unless and until proven guilty.14-166
Defense counsel:
Joseph Fusella Esq., Bloomfield, N.J.
Michael N. Pedicini Esq., Chatham, N.J.
Marc Agnifilo Esq., New York, N.Y.Union Officials Plead Guilty to Extortion Conspiracy Involving Christmastime Tribute PaymentsRead the Press Release
NEWARK, N.J. B Three former International Longshoremen’s Association (ILA) union officials admitted today that they conspired to extort ILA Local 1235 longshoremen on the New Jersey piers for Christmastime tribute payments, New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Vincent Aulisi, 82, of West Orange, N.J., the president of ILA Local 1235 from approximately 2006 through 2007; Thomas Leonardis, 56, of Glen Gardner, N.J., the president of the union from approximately 2008 through 2011 and former ILA representative; and Robert Ruiz, 55, of Watchung, N.J., the delegate of the union from approximately 2007 through 2010 and former ILA representative, pleaded guilty today to conspiring to extort Christmastime tributes from ILA Local 1235 members – count three of the second superseding indictment against them. Aulisi, Leonardis and Ruiz entered their guilty pleas before U.S. District Judge Claire C. Cecchi in Newark federal court.
According to documents filed in this case and statements made in court:
During their guilty plea proceedings, Aulisi, Leonardis and Ruiz admitted that they conspired with each other and others to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation. Leonardis and Ruiz were suspended from their positions following their arrest in January 2011. Aulisi had already retired from his employment on the New Jersey piers at the time of his arrest.
Charges are still pending against eight defendants in the superseding indictment, including a racketeering conspiracy charge against Stephen Depiro, 58, of Kenilworth, N.J. – a soldier in the Genovese organized crime family of La Cosa Nostra. Since at least 2005, Depiro has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235, and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235.
Two of the three remaining Genovese family associates are former union officials: Albert Cernadas, 78, of Union, N.J., the president of ILA Local 1235 from approximately 1981 to 2006 and former ILA Executive vice president; and Nunzio LaGrasso, 63, of Florham Park, N.J., the former vice president of ILA Local 1478 and former ILA Representative. The third, Richard Dehmer, 78, of Springfield, N.J., is charged with illegal gambling conduct unrelated to the waterfront extortions.
The charge to which Aulisi, Leonardis and Ruiz pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is currently scheduled for Sept. 4, 2014, for Ruiz and Sept. 9, 2014, for Aulisi and Leonardis.
U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.
The charges and allegations against the remaining defendants are merely accusations and they are considered innocent unless and until proven guilty.
Defense counsel: Joseph Fusella Esq., Bloomfield, N.J.
Michael N. Pedicini Esq., Chatham, N.J.
Marc Agnifilo Esq., New York, N.Y.
U.S. Attorney's Office Announces Final Conviction Involving Kensington Towers Asbestos Project; NYS Department of Labor Official is the Ninth Defendant to be ConvictedRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul announced today the final conviction relating to the four year investigation and prosecution involving the asbestos abatement project at Kensington Towers. The announcement came as the ninth defendant, former New York State Department of Labor inspector Theodore Lehmann, 67, of Tonawanda, N.Y., pleaded guilty before U.S. District Court Judge Richard J. Arcara, to violating the Clean Air Act involving the negligent endangerment of the public. The charge carries a maximum penalty of one year in prison, a fine of $100,000 or both.
“Today’s development brings to a close the prosecution of those responsible for endangering the public during the asbestos abatement project at the Kensington Towers,” said U.S. Attorney Hochul. “This prosecution revealed wrongdoing by those who contracted to perform the work correctly, both abatement and air monitoring employees. It showed further that public officials, ranging from City of Buffalo inspectors to a New York State official, also committed federal crimes. As shown once again by this prosecution, the Office will not permit those in either private employment or public service to endanger the health of the public.”
“Improper disposal of asbestos endangers human health and can seriously harm the environment," said Vernesa Jones-Allen, Special Agent in Charge of EPA’s Criminal Investigation Division in New York. "Government officials have a responsibility to protect those they serve. If they fail to do that, EPA will hold them accountable to protect the public's health and safety."
Assistant U. S. Attorneys Aaron J. Mango and Russell T. Ippolito, who are handling the case, stated that in June of 2009, Johnson Contracting was awarded a sub-contract to conduct the asbestos abatement project at Kensington Towers, a six-building complex owned by the Buffalo Municipal Housing Authority, located on the East side of Buffalo. In an environmental survey conducted before the commencement of the abatement project, it was estimated that each building at Kensington Towers contained in excess of 63,000 square feet of hazardous asbestos-containing material.
In January 2010, the New York State Department of Environmental Conservation received an anonymous telephone call indicating that friable asbestos was being mixed with non-friable asbestos in open containers at Kensington Towers. The caller further noted that work practice standards, designed to minimize the risk of asbestos becoming airborne during renovation and demolition activities, were not being followed. With demolition of the six Kensington Towers buildings imminent, the DEC partnered with Special Agents of the U.S. Environmental Protection Agency to investigate. That investigation revealed substantial quantities of asbestos containing materials still remained in all six buildings.
Had the Kensington Towers demolition occurred as scheduled, a significant amount of asbestos material would have been released into neighboring communities. The area immediately surrounding the Kensington Towers includes a residential area, two schools, multiple businesses and the Erie County Medical Center.
The defendant convicted today was employed by the New York State Department of Labor as an inspector. In this capacity, Lehmann was responsible for conducting periodic inspections to ensure compliance with state environmental regulations during the asbestos abatement project. During his inspections, the defendant negligently released asbestos into the air and negligently relied on previous inspections conducted by JMD Environmental Inc., and its employees, who were responsible for conducting air monitoring and testing at the site. JMD indicated all asbestos had been removed from the buildings when in fact a substantial quantity had been left in the building. The abatement work itself was to have been by Johnson Contracting of WNY, Inc. and its employees.
Defendant Lehmann is the ninth and final defendant to be convicted as part of the Kensington Towers asbestos abatement project. Also convicted:
• Johnson Contracting supervisors Ernest Johnson and Rai Johnson were convicted of violating Clean Air Act asbestos work practice standards;
• JMD project monitor and supervisor Evan Harnden was convicted of aiding and abetting a violation of the Clean Air Act asbestos work practice standards;
• JMD project monitors Chris Coseglia, Henry Hawkins and Brian Scott were convicted of being an accessory after the fact to a false statement under the Clean Air Act;
• City of Buffalo inspectors Donald Grzebielucha and William Manuszewski were convicted of a negligent endangerment charge under the Clean Air Act.
The plea is the culmination of an investigation on the part of Special Agents of the U.S. Environmental Protection Agency - Criminal Investigation Division, under the direction of Acting Special Agent-In-Charge, Vernesa Jones-Allen; Special Agents of the Federal Bureau of Investigation; Special Agents of the U.S. Department of Housing and Urban Development - Office of Inspector General, under the direction of Special Agent-In-Charge Christina Scaringi; and Investigators of the New York State Department of Environmental Conservation Police, BECI, under the direction of Captain Frank Lauricella. Additional assistance was provided by the New York State Department of Labor, Asbestos Control Bureau.
Theodore Lehmann will be sentenced on August 22, 2014, 2014 at 12:00 p.m. before Judge Arcara.U.S. Attorney Announces Take 25 Child Safety Event in PhoenixRead the Press Release
PHOENIX - The National Center for Missing and Exploited Children (NCMEC) created the Take 25 campaign to encourage families to take 25 minutes to talk to their children about safety and abduction prevention. NCMEC estimates that 800,000 children are reported missing in America every year, which is more than 2,000 children each day. Fortunately, most of these children are quickly located.
NCMEC has found that in 51% of attempted abduction cases, children escaped would-be abductors through their own actions. 32% of the children actively resisted (yelling, kicking, pulling away, running away, or attracting attention). Even more inspiring is that in 17%
of these cases, a parent or another individual intervened to rescue the child. Teaching and reassuring children about safety - without scaring them - requires a delicate balance. Take 25 provides parents tools and age-appropriate suggestions for approaching the topic of safety with their children.“The annual Take 25 national child safety campaign is particularly important this time of year, when children begin their summer breaks from school and have more time on their hands” said U.S. Attorney John S. Leonardo. “Especially in light of recent events arising from abductions, we encourage parents to take time and pledge to talk with their children about safety and abduction prevention. We hope that the tools and information provided at this year’s Take 25 events will assist families in keeping their children safe.”
Since 1983, May 25th has been observed as National Missing Children’s Day. In conjunction with observance of this year’s National Missing Children’s Day, the United States Attorney’s Office in partnership with our city, state, and federal agencies will offer a Take 25 child safety event. This year’s event will be held on Friday, May 30, 2014, at the Desert Ridge Marketplace in North Phoenix from 11:00 a.m. to 2:00 p.m. Digital child identification kits will be provided free of charge. This event is designed to help parents and others teach children to be alert to potential threats and provide steps that children can take to stay safe.
For more information on NCMEC, visit www.missingkids.com. For more information about the Take 25 campaign, visit www.Take25.org. For more information on Project Safe Childhood, visit www.projectsafechildhood.gov.
RELEASE NUMBER: 2014-29_Take_25_Phoenix
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Two Men Charged with Stealing Aluminum Carts from the Postal ServiceRead the Press Release
Scrap Value of Stolen Containers is Alleged to be Over $2.2 Million
Baltimore, Maryland - A federal grand jury has indicted Aaron Keith Howard, age 52, of Brooklyn, Maryland, and Roland Michael Muir, age 57, of Glen Burnie, Maryland, on charges of conspiring to steal, and theft of, aluminum carts from the U.S. Postal Service. The indictment was returned on May 6, 2014. Muir was arrested today. Howard was previously arrested, detained in federal custody and pleaded not guilty at his arraignment on May 9th.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Anne Arundel County Police Chief Kevin Davis.
"Theft of mail transport equipment is a serious crime," said Gary Barksdale, Inspector in Charge, U.S. Postal Inspection Service - Washington Division. "The Postal Service receives no tax dollars for operating expenses and cannot afford to replace valuable equipment to provide reliable customer service. Postal Inspectors are charged with protecting the U.S. Postal Service’s infrastructure and we will continue to aggressively pursue those who threaten the financial and operational health of America’s mail system."
The U.S. Postal Service used and stored mail transport equipment, including large aluminum carts known as over-the-road containers. Muir worked for a private mailer company located in Baltimore, driving a box truck.
According to the two count indictment and affidavit in support of the complaint, Howard and Muir drove in Muir’s employer’s box truck to U.S. Postal Service bulk mail centers in Capitol Heights where they stole the over-the-road containers and loaded them on the truck. Beginning in November 2013, Howard rented a 26 foot moving truck and drove it to the bulk mail centers in Capitol Heights where he stole the containers and loaded them onto the truck .
The indictment and affidavit allege that from April 2012 to April 2014, the defendants sold 1,765 containers containing 383,286 pounds of aluminum to metal recyclers in Maryland, including the Arundel Recycling Center in Anne Arundel County. They received $223,717 in cash. The defendants painted over U.S. Postal Service identifiers on the containers to avoid suspicion. The replacement value of the scrapped containers to the U.S. Postal Service is alleged to be over $2.2 million dollars.
The defendants face a maximum sentence of five years in prison for the conspiracy and 10 years in prison for the theft charge. An initial appearance has been scheduled for Muir at 4:15 p.m. today in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service - Washington Division and Anne Arundel County Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Paul E. Budlow, who is prosecuting the case.
Two Members of Genovese Crime Family Sentenced in Manhattan Federal Court for Loansharking in Commercial Carting SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that DOMINICK PIETRANICO and JOSEPH SARCINELLA were sentenced in Manhattan federal court in connection with their roles in a scheme to exert control over the commercial waste-hauling industry in the greater New York City metropolitan area and in parts of New Jersey. Each defendant previously pled guilty to one count of loansharking in connection with the scheme. PIETRANICO and SARCINELLA were each sentenced today to five months in prison by U.S. District Judge P. Kevin Castel.
According to the Indictment, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including today’s sentencing:
PIETRANICO and SARCINELLA were participants in a scheme, along with other members and associates of three different Organized Crime Families of La Cosa Nostra (“LCN”) – the Genovese, Gambino, and Luchese Crime Families – to control various waste disposal businesses in the New York City metropolitan area and multiple counties in New Jersey. Members of the scheme engaged in various crimes including extortion, loansharking, mail and wire fraud, and stolen property offenses.
PIETRANICO and SARCINELLA, who are made members of the Genovese Crime Family, provided protection and “backing” to a cooperating Government witness who operated a waste disposal company, and made an extortionate loan at a rate of interest exceeding 100% annually.
In addition to the prison terms, PIETRANICO, 83, of Mahopac, New York, and SARCINELLA, 79, of Scarsdale, New York, were each also sentenced to one year of supervised release. Additionally, PIETRANICO was ordered to forfeit $9,340 and pay a $2,000 fine, and SARCINELLA was ordered to forfeit $10,540 and pay a $5,000 fine.
PIETRANICO and SARCINELLA were charged as part of a large investigation led by the United States Attorney’s Office for the Southern District of New York, the Federal Bureau of Investigation (“FBI”), and the Westchester County Police Department. To date, 32 defendants have been charged with participating in the scheme to exert control over the commercial waste-hauling industry. Twenty-one of these defendants have been convicted for their roles in this scheme.
Mr. Bharara praised the investigative work of the FBI and the Westchester County Police Department.
The prosecution of this case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Brian R. Blais and Patrick Egan are in charge of the prosecution. Assistant United States Attorney Micah Smith of the Office’s Money Laundering and Asset Forfeiture Unit is responsible for the forfeiture aspects of the case.
Two Forest Men Sentenced on Federal Drug ChargesRead the Press Release
Jackson, Miss – Charles Dewayne Loper, 37, and Shamal Anton Moss, 34, of Forest, Mississippi, were sentenced in U.S. District Court today in connection with an extensive narcotics investigation, dubbed “Operation Brusha”, targeting illegal narcotics distribution in Scott County, Mississippi, announced U.S. Attorney Gregory K. Davis.
Loper was sentenced to 100 months in federal prison followed by four years of supervised release and Moss was sentenced to 110 months in federal prison followed by four years of supervised release. Both defendants previously pled guilty to conspiracy to possess with intent to distribute more than 50 grams of methamphetamine.
“Operation Brusha” was conducted by the Bureau of Alcohol, Tobacco Firearms and Explosives, Homeland Security Investigations and Mississippi Bureau of Narcotics with assistance from the Mississippi Highway Patrol, Mississippi Bureau of Investigation, Forest Police Department, and Scott County Sheriff’s Department. The case was prosecuted by Assistant U.S. Attorney Erin O. Chalk.
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Two Charged in Fraud SchemeRead the Press Release
PITTSBURGH – Two Pittsburgh men have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy and bank fraud, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on May 6 and unsealed today, named Eric Tyrone Bates, Jr., 27, and Herbert Butler, Jr., 27, as defendants.
According to the indictment, beginning in 2013, Bates and Butler conspired together to steal bank account information belonging to an account holder at Citizens Bank in Pittsburgh, information they used to create accounts at other banks which they controlled to make multiple withdrawals of cash. Bates is also charged separately for bank fraud in connection with another unauthorized access of a Citizens Bank account and subsequent withdrawals from the account. Some of the funds were used to buy automobiles.
The law provides for a maximum total sentence of not more than 35 years in prison, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Western Pennsylvania Financial Crimes Task Force (WPFCTF) conducted the investigation that led to the indictment of Bates and Butler. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
An indictment is an accusation. The defendants are presumed innocent unless and until proven guilty.
Top “Silk Road” Distributor of Drugs and Bitcoins Charged in TampaRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the filing of an information charging Angel William Quinones (34, Largo) with conspiracy to import MDMA, a/k/a Ecstasy or “Molly,” into the United States. A plea agreement was also filed in United States District Court in Tampa. Quinones faces a maximum penalty of 20 years in federal prison.
According to the plea agreement, from at least August 2012 through October 2013, Quinones used the underground website known as “Silk Road” as part of a conspiracy to import at least 9,193 grams of MDMA into the Middle District of Florida, for further distribution in the United States. From January 2011, until it was shut down by law enforcement in October 2013, Silk Road was dedicated to the sale of illegal drugs and other illicit, black market goods and services using the digital currency Bitcoin. The website was also designed to facilitate illegal commerce by ensuring anonymity among its users. Quinones was one of the largest wholesale re-distributors of illegal drugs from Silk Road in the United States.
Operating out of Largo, Florida, Quinones used the usernames “UnderGroundSyndicate” and “BTCmaster” to advertise, market, and sell illegal drugs on Silk Road. In operating the UnderGroundSyndicate and BTCmaster accounts, he obtained his MDMA principally from a Dutch supplier named Cornelis Jan Slomp (22). Slomp’s Silk Road username was “SuperTrips”. According to records obtained from the Silk Road servers, Slomp was the number one distributor of controlled substances, by sales, on the website. On April 24, 2014, the United States Attorney’s Office for the Northern District of Illinois announced that Slomp had been charged with conspiracy to distribute various controlled substances through Silk Road, including approximately 104 kilograms of MDMA, 566,000 ecstasy pills containing MDMA, four kilograms of cocaine, three kilograms of Benzodiazepine, and substantial quantities of amphetamine, LSD, and marijuana. Slomp pleaded guilty on May 8, 2014.
Quinones used the “UnderGroundSyndicate” and “BTCmaster” accounts to communicate with Slomp. In August 2012, Quinones entered into an arrangement with Slomp, whereby Slomp would provide him with wholesale quantities of MDMA on credit. Quinones, in turn, would sell the substances to his own customers via Silk Road and then split the proceeds with Slomp. Thereafter, Slomp shipped the MDMA into the Tampa area. After obtaining the MDMA, Quinones distributed the MDMA to customers throughout the United States. Quinones obtained several Post Office boxes in Pinellas County, which he used to ship and receive MDMA and proceeds. Slomp also provided Quinones with his unique logon information to the SuperTrips account and paid him to review and reply to messages sent to Slomp by customers on Silk Road.
Additionally, Slomp sent Quinones Bitcoins generated from Silk Road drug transactions to be converted into cash. Slomp also agreed that Quinones would hold on to a portion of the proceeds that Quinones had generated for Slomp, until Slomp was ready to retrieve them. In August 2013, Slomp was arrested after traveling from the Netherlands, to Miami, in order to meet with Quinones and transfer Slomp’s United States-based Silk Road operations, including his United States customers, to Quinones.
On October 2, 2013, with assistance from agencies in Chicago, federal agents executed a search warrant at Quinones’ home in Largo. During the search, agents found approximately $157,580 in cash, documents and keys associated with Post Office boxes used by the UnderGroundSyndicate and BTCmaster accounts, and various electronic media. Forensic analysis of that electronic media later uncovered spreadsheets and other documents authored by Quinones, which were associated with the UnderGroundSyndicate and BTCmaster accounts, including Silk Road customer orders and tracking information for parcels containing MDMA and drug proceeds.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the United States Postal Inspection Service, and the Office of the United States Attorney for the Northern District of Illinois. It is being prosecuted by Assistant United States Attorney Patrick Scruggs.
Tampa Man Pleads Guilty to Credit Card Fraud and Identity Theft ChargesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Noel Perez Partagas (21, Tampa) today pleaded guilty to two counts of access device (credit card) fraud and one count of aggravated identity theft. Partagas faces a maximum penalty of 10 years in federal prison for each of the credit card fraud offenses and 2 consecutive years’ imprisonment on the identity theft charge.
According to the plea agreement, Partagas obtained stolen credit and debit account numbers, which he used to create and/or purchase counterfeit or cloned credit cards. The true owners of the credit and debit accounts remained in possession of the cards and did not know to report them stolen. Partagas used the cards to purchase large quantities of fuel and tires, among other things, that could later be sold for cash.
Partagas had previously been arrested in July 2013, when he purchased approximately $100 worth of diesel fuel using a fraudulent credit card at a Murphy Gas location in Polk County. At the time, he was driving a pick-up truck with a large custom “bladder tank” in the truck’s bed that was used to hold large quantities of fuel. Partagas was also in possession of 69 credit cards and 20 gift cards, most which had been re-encoded. In early May 2013, Partagas also used fraudulent credit cards to purchase nearly $42,000 worth of tires from two tire retailers in the Lakeland area. The credit card companies suffered losses of over $65,000, with potential losses totaling nearly $350,000.
This case was investigated by the United States Secret Service, Polk County Sheriff’s Office, Tampa Police Department and Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
St. Francis Man Sentenced for Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man convicted of Domestic Assault by a Habitual Offender was sentenced on May 12, 2014, by U.S. District Judge Roberto A. Lange.
Fabian McCloskey, age 39, was sentenced to 37 months in custody, 2 years of supervised release, and $100 to the Federal Crime Victims Fund.
McCloskey was indicted by a federal grand jury on December 10, 2013. He pled guilty on February 11, 2014.
The conviction stems from an incident on November 29, 2013, when McCloskey was at a family member’s home where the victim and her children were staying during the Thanksgiving holiday. McCloskey asked the victim to sit with him in another room. When she refused, he struck her several times in the face, then pulled the victim toward him by her hair, and drove his knee toward the victim’s head, striking her several times. As a result, the victim suffered minor injuries to her face, including several welts to her forehead and cuts to her lips and the inside of her mouth.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers prosecuted the case.
McCloskey was immediately turned over to the custody of the U.S. Marshals Service.